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Exhibit 10.14  

 
 

PERMANENT
  SOFTWARE LICENSE AGREEMENT    
    

 
 

SCHEDULE    
    

        CMS Solutions Inc., a California corporation ("Licensor") and Allegiant Air, Inc. ("Client") enter
into this License Agreement with respect to the following: 

        A.    Products:    The proprietary computer programs and related materials licensed pursuant to the Agreement are
described as follows: 

ICARUS—Airline System

        B.    License
and Maintenance Fees for the Products are as follows: 

	License Fee
	 	Monthly Maintenance

Plan Fee

	Fully Paid	 	$10,000/Month (subject to paragraph 25)

        C.    Authorized Location(s):    The Products may be used only at the address stated below, or as stated here, if
different: Any location authorized by the Client

        D.    Authorized Equipment:    The Products are licensed solely for operation on the following described Authorized
Equipment: Any Linux compatible hardware

        E.    Effective Date:    August 1, 2001 

        F.    Warranty:    The Warranty Period applicable to the Products licensed hereby is Twelve
(12) Months from date of delivery, so long as the monthly License Fee/Maintenance Fee is not delinquent (automatically reinstated upon cure). 

        This
License Agreement consists of this Schedule and the Attached General Terms and Conditions, numbered 1 through 25. 

	Licensor:

CMS Solutions, Inc.

2727 N Grove Industrial #121

Fresno, California 93727	 	Client:

Allegiant Air, LLC

(successor in interest to Allegiant Air, Inc.)

3301 Buffalo, Suite B-9

Las Vegas, Nevada 89129
	By:	/s/ M. H. Allee
	 	By:	/s/ Andrew C. Levy

	Name:	M. H. ALLEE
	 	Name:	Andrew C. Levy

	Title:	PRESIDENT
	 	Title:	Managing Director

	Date:	6 Oct 2004
	 	Date:	October 8, 2004

 
 
 

GENERAL TERMS AND CONDITIONS    
    

        1.    Grant of License.    Licensor grants and Client accepts, on the terms and conditions contained in this
Agreement, the nonexclusive right to use the proprietary computer programs and related materials (together with any releases, alterations, options, repairs, modifications or enhancements supplied by
Licensor hereunder, the "Products") described in the Schedule at Client's Authorized Location which right shall be perpetual, nonterminable, fully paid, non-transferable and
non-assignable (except to the extent provided herein). The parties contemplate that Licensor and Client intend to modify the Licensed Source Code (as defined in paragraph 24) for
application to Client's Business (as defined in paragraph 24). Any modified version of the License Technology will constitute Licensee Derivative Works (as defined in paragraph 24)
hereunder that may be used by Client in the Business and that shall be owned exclusively by Client. 

        2.    Documentation.    

        a.     Licensor
will supply to Client without charge one (1) copy of the applicable user's guide, containing technical specifications and instructions for installation
and use of the Products ("Documentation") for each Product licensed hereunder. As required by Client, additional copies of the Documentation may be supplied upon request at no additional charge. No
part of the Documentation may be reproduced, copied or distributed by Client in any way except as provided by this Agreement. 

        b.     A
locked copy of the source code for the Products shall be installed onto the Client's servers and Licensor shall provide Client with a sealed envelope containing the key
to such lock. In the event Licensor shall be in material breach of this Agreement and fail to cure such breach within thirty (30) days after receipt of written notice thereof or if Licensor
ceases business operations, then Client shall have the right to retrieve the key and access the source code for its business purposes. Client agrees that it will not otherwise access the source code. 

        3.    Title and Ownership.    

        a.     Title
and full ownership rights to the Products and Documentation provided hereunder shall remain with Licensor at all times except for Licensee Derivative Works which
shall be owned by Client. Client acknowledges, understands and agrees that the Products and Documentation constitute valuable and confidential proprietary assets and trade secrets of Licensor, and the
Client has no right, title or interest therein, and no right to the use thereof, except as expressly set forth in this Agreement. Client
agrees not to change or remove any identification from the Products or Documentation which indicates Licensor's ownership thereof, but this agreement shall not apply to Licensee Derivative Works. 

        b.     Except
in connection with the sale of all or substantially all of the assets of Licensor or Client (in which event, the purchaser shall be bound by all of the terms of
this Agreement to the same extent as the seller) or a "change in control" of Client (in which event, Licensor and the successor in interest to Client shall continue to be bound by all of the terms of
this Agreement), the rights of the Client or Licensor in the Licensee Derivative Works may not be transferred or assigned without the written consent of the other party, which consent may not be
unreasonably withheld, conditioned or delayed. For these purposes, a change in control shall be deemed to have occurred if a transaction is completed (whether resulting from a sale or issuance of
ownership interests, a merger, consolidation or otherwise) after which the owners of the Client prior to the transaction own less than fifty percent (50%) of the outstanding ownership interests of the
Client (or its successor) after the transaction. 

2

 

        4.    Scope of Use.    

        a.     The
Products may be used by Client only for Client's own use, only at the Authorized Location designated in the Schedule and only on the Authorized Equipment designated
in the Schedule. Client may not change the location of the use of the Products, and may not use the Products on any equipment other than the Authorized Equipment, without the prior written consent of
Licensor which shall not be unreasonably withheld. 

        b.     The
term "use" shall mean copy any portion of the Products into the Authorized Equipment for execution of the program's instructions and/or utilizing related materials
and generated output of the Products as contemplated by this Agreement. 

        c.     Without
the prior written consent of the Licensor, the Licensee Derivative Works may be used by Client (and its successors in interest as provided in
paragraph 3(b)) only in connection with the operation of its Business. Without the prior written consent of the Client, the Licensee Derivative Works may not be used by Licensor except in
connection with the operation of, and for the benefit of, Client's Business, it being agreed that Licensor shall not have any rights to use (for its own benefit or for the benefit of others) the
Licensee Derivative Works. 

        5.    Type of License and Period of Use.    Products are licensed on a permanent basis for fees as specified in the
Schedule. The term of a permanent license is perpetual and is not subject to termination for any reason whatsoever. 

        6.    License Fees.    

        a.     The
license fee for use of the Products shall be as specified on the Schedule. 

        b.     The
license fee does include: personnel training, product installation, fees for product options or alterations, repairs or enhancements to the Products as required to
satisfy the warranty contained in this Agreement. The license fee shall also include all updates and enhancements to the Products which Licensor may hereafter make generally available to other
licensees of the Products or similar software of Licensor. The license fee does not include: travel expenses, freight, delivery, duties, taxes, transfers or other expenses incurred in the
transportation and shipment of the Products to Client. Client agrees to pay all such costs, and to indemnify Licensor therefrom. 

        7.    Limited Warranty.    

        a.     Licensor
warrants that at the time of delivery of the Products and for the Warranty Period specified on the Schedule, the original Products will be substantially in
accordance with the specifications contained in the applicable Documentation. The extent of Licensor's liability under this warranty shall be limited to the correction or replacement as soon as is
practicable of any substantial deviation in the original Products (or any subsequent releases of the Products) from the specifications contained in the Documentation, which Licensor determines to be
necessary, at Licensor's own cost and expense, provided written notice of such substantial deviation is received by Licensor during the Warranty Period. 

        b.     The
warranty set forth in this Paragraph shall not apply if: (1) the Products (or any part thereof) are not used in accordance with Licensor's instructions;
(2) the Authorized Equipment is not installed or operated in conformance with its manufacturer's specifications; (3) the Products are used on other than the Authorized Equipment;
(4) the Products have been altered, modified or converted by Client without the prior written approval of Licensor; (5) Client's equipment shall malfunction, or (6) any other
cause within the Client's control shall result in the Products becoming inoperative or substantially deviating from the specifications contained in the applicable documentation. If Client requests
warranty or maintenance services, then to the extent necessary to 

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perform
such services, Licensor reserves the right to request a copy of the Client's version of the Products at no charge to Licensor, at any time and from time to time during the Warranty Period and
any subsequent period covered by a maintenance plan. 

        c.     THE
FOREGOING WARRANTY IS IN LIEU OF ANY AND ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, ARISING BY OPERATION OF LAW, FROM THE COURSE OF DEALING, USAGE OF TRADE OR
INDUSTRY, OR OTHERWISE, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. LICENSOR MAKES NO OTHER OR FURTHER WARRANTIES OR ANY KIND, AND ALL
SUCH OTHER OR FURTHER WARRANTIES WHICH EXCEED THE WARRANTIES STATED IN THIS PARAGRAPH ARE HEREBY DISCLAIMED BY LICENSOR AND EXCLUDED FROM THIS AGREEMENT. 

        d.     Licensor
warrants that (i) it has good and valid title to the Products and the Documentation, free and clear of any claims of any third parties, (ii) it has
full power and authority to grant the rights granted hereunder to Client, without the consent of any other person, and (iii) the Products, the Documentation, the license granted hereunder and
use by the Client thereof shall not violate any applicable laws, rules, and regulations, or in any way constitute an infringement or other violation of any copyright, trade secret, trademark, patent,
invention, proprietary information, non-disclosure or other rights of any third party. Licensor shall indemnify, defend and hold harmless Client from and against any and all claims,
losses, liabilities, costs and expenses (including reasonable attorneys fees and expenses) incurred or suffered by Client on account of a claim asserted by a third-party arising from a breach of any
of the warranties of Licensor contained in this paragraph (d). 

        8.    Liability.    

        a.     Except
as set forth in paragraph 7(d) or as otherwise specifically provided in this Agreement, Licensor shall not be liable for any loss or damage which may arise
in connection with the furnishing to or use by Client of the Products or the performance of the Products. The remedies of Client as set in this paragraph 8 hereof shall be the sole and
exclusive remedies of Client for any breach of any obligations, warranties or representations of Licensor hereunder or otherwise and in no event shall Client be entitled to any monetary damages
against Licensor in excess of the amounts paid to Licensor by Client pursuant to this Agreement. WITHOUT LIMITATION OF THE FOREGOING, LICENSOR SHALL NOT BE LIABLE TO CLIENT OR TO ANY THIRD PARTY FOR
ANY LOSS OF PROFITS, LOSS OF BUSINESS, LOSS OF ANTICIPATED SAVINGS, LOSS DUE TO MALFUNCTION AND TRANSMISSION OF DATA OR FOR ANY OTHER INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES EVEN IF LICENSOR HAS
BEEN INFORMED OF THE POSSIBILITY OF SAME, EXCEPT AS MAY ARISE AS A RESULT OF THE WARRANTIES PROVIDED IN PARAGRAPH 7(d) AND LICENSOR'S DUTY TO INDEMNIFY, DEFEND, AND HOLD HARMLESS AS PROVIDED IN THAT
PARAGRAPH. 

        b.     Except
as may arise as a result of the warranties provided in paragraph 7(d) and Licensor's duty to indemnify, defend, and hold harmless as provided in that
paragraph, no action regardless of form arising out of this Agreement may be brought by either party more than two years after the cause of action has occurred, except that an action for nonpayment
may be brought within two years after the date of the last payment. 

4

 

        9.    Confidentiality.    

        a.     Client
agrees that it will not, without the prior written permission of Licensor, copy or duplicate, or permit anyone else to copy or duplicate any physical embodiment of
the Products or Documentation or create or attempt to create or permit to create or attempt to create the source programs and/or object programs of the Products or any part thereof from the object
module or other information tangible or intangible form made available pursuant to this Agreement. Client further agrees not allow any machine readable version of the Products to be printed, listed,
decompiled or disassembled. Nothing herein shall preclude Client from creating and using Licensee Derivative Works as contemplated herein. 

Notwithstanding
the foregoing, Client may make an archival copy of the Products, to be used for back-up use only, provided that (1) Client abides by all of the provisions of this
Agreement and (2) Licensor's copyright and identification marks are affixed to such copy. 

        b.     Client,
on behalf of itself and its agents, servants, contractors and employees, agrees to maintain all information and data contained in the Products, Documentation,
generated output, modifications, and conversions in strict confidence for Licensor. Client agrees to take reasonable steps necessary to insure that persons having access to the Products or
Documentation refrain from any unauthorized reproduction or disclosure of such information and data to those employees of Client who (1) have a need to have such access or to see such display
in order to enable Client to utilize the Products as contemplated by this Agreement, and (2) have been advised of and have agreed to treat such information and data in accordance with this
paragraph 9. Client agrees to take reasonable necessary security measures in order to satisfy its obligations of nondisclosure hereunder. 

        c.     Client
agrees to notify Licensor promptly of the circumstances surrounding any unauthorized possession, use or knowledge of any part of the Products or physical
embodiments thereof, the Documentation or other information made available pursuant to this Agreement, by anyone other than the persons authorized by this paragraph to have such possession, use or
knowledge. 

        d.     It
is understood and agreed that the provisions of this paragraph do not apply to information or data identical or similar to that which Licensor treats as proprietary
which was or is rightfully obtained by Client from the public domain or from a source other than Licensor. Client also agrees that if Client becomes aware that it possesses information or data that is
identical or similar to that which Licensor treats as proprietary, Client will give Licensor prompt written notice thereof and of the source from which it was obtained. 

        e.     Licensor
agrees to be bound by the provisions of this paragraph 9 to the same extent as Client with respect to the Licensee Derivative Works or other confidential
information of Client. 

        f.      The
parties acknowledge and agree that in the event of an unauthorized reproduction or disclosure of any confidential information or data subject to this
paragraph 9, the other party will not have an adequate remedy at law and therefore injunctive or other equitable relief would be proper to restrain such reproduction or disclosure, threatened
or actual. 

        g.     Licensor
acknowledges that all information and data provided by Client to Licensor in connection with this Agreement is proprietary to Client and is and shall remain the
property of Client. Unless such information is otherwise available to the public or was obtained by Licensor from a third party without any wrongdoing by Licensor or such third party, whether
inadvertent or otherwise, in which case Licensor shall use its best efforts not to publicize such information, Licensor shall hold in confidence and not sell, assign, distribute or disclose such
information, or 

5

 

any
part thereof, to any person or entity other than Licensor's employees who require such knowledge and use in the ordinary course and scope of their employment. Further, unless specifically
authorized under this Agreement or except for ordinary and necessary backup purposes, Licensor shall not use, make or have made any more copies of any information of any part thereof than are
necessary for Licensor's performance hereunder. 

        h.     Licensor
agrees to use reasonable efforts by instruction, agreement or otherwise, relative to use, copying, modification, protection and security by its employees or
other persons permitted access to Client's proprietary information in order to satisfy its obligations of non-disclosure of such proprietary information under this Agreement and further
will limit access to those areas of its premises where such information is used or stored to only those persons having a right to access thereto. 

        10.    Assignment.    Neither this Agreement nor the License contemplated hereby may be assigned, subleased, sold,
transferred or voluntarily, involuntarily, by operation of law or otherwise without the prior written consent of Licensor except that this Agreement shall be binding upon and inure to the benefit of
the successors to Client as set forth in paragraph 3(b). 

        11.    Maintenance.    

        a.     Licensor
offers a maintenance and enhancement plan ("Plan") pursuant to which Licensor will supply code corrections as required to correct substantial deviations of the
Products from the specifications contained in the Documentation, and will supply improvements, enhancements and other changes which in Licensor's discretion it deems to be logical improvements to the
Products. Licensor will also supply technical assistance, without charge, in the ordinary and customary support of the Products, or at Licensor's standard consulting rates if technical assistance is
required in excess of ordinary and customary support. Except for support services critical to the uninterrupted operation of Client's Business (which shall be provided as soon as possible),
maintenance services will be available during Licensor's normal business hours (Monday-Friday, 8 a.m.—5 p.m., Pacific Time) and will be supplied within a reasonable time
after Client's request therefor is received. 

        b.     The
Plan is provided to Client at the rate indicated in the Schedule. Client's subscription will be automatically entered for the Plan for an initial one-year
period commencing upon the last day of the Warranty Period, and such subscription will be automatically renewable for successive annual periods, unless Client supplies written notice to Licensor of
its intent to terminate such subscription, thirty (30) days prior to the beginning of any such annual period. Client may continue to use the Products whether or not the maintenance fees are
current. 

        c.     Maintenance
and enhancement provided pursuant to the Plan will be provided with respect to the original Products as supplied to the Client, as modified by Licensor,
pursuant to this Agreement. If Client has modified the Products without Licensor's consent, Licensor, as a condition to its obligation to perform under the Plan, may require Client to demonstrate that
any deviation or malfunction in the Products was not caused by Client's modifications. 

        d.     Licensor
may terminate its obligation to provide the Plan by giving at least (30) days written notice to Client (i) if Client defaults in paying any
maintenance fees hereunder and fails to cure such default within thirty (30) days after receipt of written notice thereof or (ii) if Licensor is liquidated, dissolved or ceases to carry
on business, and the obligations of Licensor to provide maintenance in accordance with this paragraph are not assumed by any successor or assignee of Licensor. In the event of such termination,
Licensor will refund to Client a prorata portion of any annual maintenance fee. 

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        e.     In
the event Licensor defaults on its obligations to provide the Plan, and the services, updates and enhancements thereunder, which default is not cured within
30 days after written notice from the Client, then the Client may terminate the maintenance aspects of this Agreement. 

        12.    No Termination.    This Agreement shall have an indefinite term, shall not be terminable and shall remain in
full force and effect perpetually. 

        13.    Notices.    All notices required or allowed to be given under this Agreement shall be in writing, personally
delivered or mailed by first class mail, certified, return receipt requested, postage prepaid, addressed to the party at the address set forth on the Schedule. Additional addresses may be designated
by either party from time to time by written notice to the other. Mailed notices shall be deemed to be received on the fifth business day following the date of mailing. 

        14.    Successors.    Subject to the provisions of paragraph 10, this Agreement, together with all schedules or
modifications now or hereafter made part hereof, shall be binding on the respective parties and their respective heirs, administrators, legal representatives, successors and assigns. In the event
Licensor is liquidated, dissolved or ceases to carry on any business, and the obligations of Licensor are not assumed by any successor or assignee of Licensor, a current copy of the source program
statements and documentation of the Products utilized by Client will be made available to Client, and Client will have a non-exclusive, perpetual, paid-up license to the source
program statement and documentation. Such source code statements and documentation are to be utilized solely for the internal support and maintenance of the Products and may not be disclosed to any
person or entity except in accordance with paragraph 9 of this Agreement. 

        15.    Delays.    Licensor shall not be liable for delays in the performance of its obligations hereunder due to
causes beyond its reasonable control including but not limited to acts of God, strikes, or inability to obtain labor or materials. 

        16.    Governing Law.    This Agreement shall be governed by and construed under the laws of the State of Nevada,
applicable to contracts wholly executed and wholly to be performed within the State of Nevada, irrespective of such State's choice of principles. 

        17.    Proceedings.    The parties hereto agree that all actions or proceedings arising in connection with this
Agreement shall be tried and litigated exclusively in the state and federal courts, located in the County of Clark, State of Nevada. The aforementioned choice of venue is intended by the parties to be
mandatory and not permissive in nature, thereby precluding the possibility of litigation between the parties with respect to or arising out of this Agreement in any jurisdiction other than that
specified in this paragraph. Each party hereby waives any right it may have to assert the doctrine of form non conveniens or similar doctrine or to object to venue with respect to any proceeding
brought in accordance with this paragraph, and stipulated that the state and federal courts located in the County of Clark, State of Nevada shall have in personam jurisdiction and venue over each of
them for the purpose of litigating any dispute, controversy, or proceeding arising out of or related to this Agreement. Each party hereby authorizes and accepts service of process sufficient for
personal jurisdiction in any action against it as contemplated by this paragraph by registered or certified mail, return receipt requested, postage prepaid, to its address for the giving of notices as
set forth in this Agreement. Any final judgment rendered against such party in any action or proceeding shall be
conclusive as to the subject of such final judgment and may enforced in other jurisdictions in any manner provided by law. 

        18.    Entire Agreement.    This Agreement constitutes the entire agreement and understanding between the parties
relating to the license and use of the Products, and all other prior agreements, arrangements, understandings, or representations, oral or written, are merged into and superseded by the terms of this
Agreement. Title and paragraph headings are for convenient reference and are not 

7

 

part
of this Agreement. This Agreement cannot be altered, amended or modified except in a writing signed by an authorized representative of each party. 

        19.    Taxes.    Client shall assume responsibility for, pay and hold Licensor harmless from the collection of payment
of all sales, use or personal property taxes required under any and all federal, state or local laws, which taxes become due by reason of the license granted under this Agreement; excluding, however,
taxes based on or measured by the net income of Licensor. Client shall execute and deliver such other and further instruments and comply with such requirements of said laws as may be necessary to
confirm and effectuate this paragraph including the making of any payment of interest or penalties relating to or arising from such sales, use or personal property taxes. 

        20.    Inconsistent Offers.    Any term or conditions of any offers set forth on any order or other document submitted
by Client which is inconsistent with any term or condition of this Agreement shall be void and of no effect whatsoever. 

        21.    Severability.    If any term or condition of this Agreement or application thereof to any person or
circumstance is held invalid, such invalidity shall not affect other terms or conditions or applications of this Agreement which can be given effect without the invalid terms or conditions. The terms
and conditions of this Agreement are declared severable. 

        22.    Authority to Contract by Executing this Agreement.    By executing this Agreement, each party represents and
warrants that all necessary corporate approvals for such execution have been obtained and that its signatory is empowered to execute this Agreement and to bind such party hereby. 

        23.    Interpretation of Agreement.    No provision of this Agreement will be interpreted in favor of, or against, any
of the parties hereto by reason of the extent to which any such party or its counsel participated in the drafting thereof or by reason of the extent to which any such provision is inconsistent with
any prior draft hereof or thereof. 

        24.    Definitions.    The following terms shall have the following definitions for all purposes of this Agreement. 

        a.     "Licensee Derivative Works" means all modifications, improvements, additions, changes, revisions and enhancements, and any
derivatives thereof, of the Licensed Source Code developed by the Client or by Licensor specifically for Client's use pursuant to this Agreement  which Client specifically requests
not be shared with other clients of Licensor. 

        b.     "Licensed Source Code" means the source code for all Licensed Software owned by Licensor and included in the Products
including all documentation, to the extent currently available, related to the Licensed Source Code, a description of all software tools, utilities, compilers and third party code required for the
compiling and linking of the Licensed Source Code into executable code, and the tools, utilities and compilers required for such compiling and linking other than standard, readily available,
off-the-shelf software and compilers for compiling and linking every part of the Licensed Source Code into executable code. A description of the Licensed Source Code including
all software tools, utilities and compilers is attached as Exhibit "A." 

        c.     "Business"
shall mean the charter and scheduled airline business. 

        25.    Acknowledgement of Subsequent Events.    This Agreement has been signed long after the effective date of this
Agreement, but the parties intend that the terms of this Agreement govern this 

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relationship
retroactively to the effective date. The parties agree to the following subsequent events which affect this Agreement on an ongoing basis: 

        a.     The
maintenance fee was increased to $15,000 per month during the period from February 2004 through June 2004 and to $ 17,500 per month effective
July 1, 2004. 

        b.     Allegiant
Air, Inc., a California corporation, merged with Allegiant Air, LLC, a Nevada limited liability company, effective as of May 3, 2004. As of that
date, Allegiant Air, LLC succeeded to all of the rights and obligations of Allegiant Air, Inc., including its rights and obligations under this Agreement. Licensor consents to the succession of
Allegiant Air, LLC as Client under this Agreement. 

9

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Exhibit 10.15  

 
 

MEMORANDUM OF UNDERSTANDING
  BETWEEN
  Allegiant Air, LLC
  AND
  SANFORD AIRPORT AUTHORITY    
    

        THIS MEMORANDUM OF UNDERSTANDING (this "MOU") dated 3/4/05 and executed by Allegiant Air, LLC with principal offices at 3301 N. Buffalo Drive, Suite B9, Las
Vegas, NV 89129 ("AAY"), and Sanford Airport Authority with principal offices at 1200 Red Cleveland Blvd., Sanford, FL 32773 ("SAA"). 

WITNESSETH 

        WHEREAS,
AAY is a Part 121 Scheduled Air Carrier and travel company principally in the business of selling and organizing travel involving air transportation; and 

        WHEREAS,
SAA is the operator of record charged with the general oversight of Orlando Sanford International Airport; and 

        WHEREAS,
AAY and SAA (together, "the Parties") desire a mutually beneficial relationship whereby AAY uses Orlando Sanford International Airport over a ten year period subject to the
terms and conditions contained here in; 

        NOW,
THEREFORE, the Parties agree as follows: 

ARTICLE
I—USE OF SFB

        AAY
agrees to use Orlando Sanford International Airport as its primary airport for services and facilities associated with the carrier's flights to Orlando for a ten year period
commencing on or about May 15th, 2005. 

ARTICLE
II—GENERAL ISSUES

	•
	Wi-Fi
will be installed by SAA and made available throughout the entire airport and out to the cockpit at no cost to AAY.

	•
	AAY
currently has right to install its own fuel storage facility, but would need to negotiate ground lease with SAA.

	•
	Cost
of AAY employee badges is $45 if a 10 year background check is required, and $21 per badge if not required. 

ARTICLE
III—FACILITES

	•
	280
sf office located at north end of cargo building will be provided by SAA.

	•
	Free
of charge for the first year.

	•
	Ready
for occupancy within 30 days after receipt of notice from AAY.

	•
	$10
psfpa for subsequent years.

	•
	30 day
out clause for AAY, with or without cause.

	•
	Any
improvements required will be paid for at SAA's expense. These could include, paint, carpet replacement or cleaning, and other basic work required to be done in order to
make the space clean and ready for occupancy. 

1

 

	•
	This
space is conditioned office space and has or will have full telecommunications capabilities as per specifications to be put forth by AAY.

	•
	Utilities
are included in the use of this space at no additional charge to AAY.

	•
	SAA
will make space available with direct ramp access for the installation of a Modular Office Unit.

	•
	AAY
will pay for the lease of the Modular Office Unit.

	•
	SAA
will cover the costs of installation of utilities, including electrical, sewer, water, and telecommunications infrastructure.

	•
	Ready
within 30 days of receipt of notice from AAY.

	•
	There
will be no ground lease charge or any other charge imposed by SAA, but SAA has the right to require the Modular Office Unit be removed with 180 days advance
written notice if it needs the space for another purpose.

	•
	Otherwise,
this space shall be free of charge in perpetuity.

	•
	SAA
will make available 3,000 sf in the cargo building.

	•
	This
space will be air conditioned and will have ramp access via a roll-up door and access to loading docks.

	•
	The
construction costs are estimated to be approximately $35K.

	•
	SAA
proposed that the cost of preparing the cargo space be paid for by AAY over a five year term, amortized fully with an interest rate of approximately 4%. Payments would
be due monthly in arrears and there would be no pre-payment penalty.

	•
	SAA
would manage the project, but AAY will design and approve the workscope, costs, and any change orders. SAA would use all reasonable efforts to assist in the timely
completion of the project for as low a cost as reasonably possible. AAY wishes to leverage SAA's relationship and knowledge of local contractors, but maintain some financial oversight since AAY is
responsible for the repayment of the costs.

	•
	Ready
within 30 days of receipt of notice from AAY.

	•
	Rent
is charged per the schedule described below for the Mature Phase. 

ARTICLE
IV—OTHER FACILITIES

        Mature
Phase Facilities: 

	•
	AAY
has the option with 120 days notice to SAA, to require SAA to build out up to 9,000 sf in the cargo building for offices, including restrooms, and maintenance
spares receiving, inventory and storage.

	•
	Cost
of construction borne by SAA and re-paid by AAY over a five-year term.

	•
	Amortized
at SAA cost of capital plus 100 basis points.

	•
	Paid
monthly in arrears.

	•
	No
pre-payment penalty

	•
	SAA
would manage the project, but AAY will have the right to approve the Workscope, costs, and any change orders. SAA would use all reasonable efforts to assist in the
timely completion of the project for as low a cost as reasonably possible. AAY wishes to leverage 

2

 

SAA's
relationship and knowledge of local contractors, but maintain some financial oversight since AAY is responsible for the repayment of the costs. 

	•
	Should
AAY terminate the lease of this space, it would remain liable for any un-paid amount of the loan according to the payment terms stated above

	•
	AAY
has right of first refusal to lease additional 3,000 sf of adjacent space in cargo building

	•
	Rates
as follows: 

	

 	

•	

Years 1 & 2	
 	

$1 per year
	

 	

•	

Years 3 & 4	
 	

$3.00 psfpa
	

 	

•	

Years 5 & 6	
 	

$4.00 psfpa
	

 	

•	

Years 7 & 8	
 	

$5.00 psfpa
	

 	

•	

Years 9 & 10	
 	

$6.00 psfpa

	•
	Costs
include: up to 350 employee parking spaces in close proximity.

	•
	The
potential to park an additional 200 cars in proximity exists.

	•
	Lease
of 3 aircraft parking positions; 2 in front of cargo building and a 3rd located as reasonably close as possible, 2 additional parking spots are currently under lease.
AAY is granted the right of first refusal to lease any additional aircraft parking positions that may come available.

	•
	Aircraft
parking positions will permit power in-power out to any extent possible, therefore avoiding requirement of a pushback

	•
	Year
1 rate starts when we begin to lease the 3,000 sf of cargo building space as described in the Start-Up section above.

	•
	Lease
can be terminated at any time by AAY with 180 days advance written notice with no further obligation except for the re-payment of construction
costs. 

        Remote
RON Parking 

	•
	SAA
is in the process of constructing the North Remote Pad, approximately 210,000 sf of space available for remote aircraft parking

	•
	Project
is expected to be completed on or about May 2005

	•
	AAY
may lease entire pad at a rate of $.12 psfpa or portions of the pad at the rate of $.15 psfpa.

	•
	The
size of any portions leased by AAY can be determined at its discretion, but should be enough space so as to permit the foot print of its aircraft (i.e., length
multiplied by wing span of the aircraft).

	•
	AAY
has right of first refusal to lease the entire pad

	•
	AAY
has been granted the option to have a hangar constructed on land adjacent the North Remote Pad.

	•
	AAY
can provide SAA 180 days advance written notice

	•
	SAA
would install a hangar at its sole cost, and re-paid by AAY on similar terms as cargo building construction described above in Mature section.

	•
	Ground
lease would be at the cost of $.15 psfpa 

3

 

	•
	Construction
would include public road access and employee parking spaces.

	•
	A
second remote pad is planned in an area contiguous to the international side of the airport.

	•
	Approximately
350,000 sf

	•
	Able
to accommodate up to approximately 20 MD80s 

ARTICLE
V—NEW CARRIER CLASS

New Carrier Class "Sanford Signatory"

        A
New Carrier Class will be implemented at SFB. This class will be defined by the following criteria: 

	•
	Part 121
Scheduled Air Carrier service

	•
	Domestic
service

	•
	Minimum
aircraft size of 120 seats

	•
	Minimum
of 100 Part 121 "Scheduled" monthly domestic departures from SFB over a rolling 6 month forward looking period

	•
	10 year
service agreement 

        The
new rates and charges imposed on a carrier meeting the above criteria: 

	•
	Landing
fee—50% of current base fee of $.97 /1,000 lbs of max gross certificated landed weight

	•
	Public
safety fee—50% of current fee of $.25 per departing passenger

	•
	Aircraft
remote RON parking fee—50% of current fee of $50/24 hour period

	•
	Fuel
flowage fee—$.03 per gallon uplifted 

        The
discounted rates afforded AAY if it meets the definition of the New Carrier Class are not applicable for the following: 

	•
	Flights
operated, in association with Vacation Express to ATL, BNA, CVG, IAD, BWI, SDF, CLT, MEM, MSY, GUN, PUJ, POP, AUA, NAS or LIR.

	•
	Flights
to/from other markets where Vacation Express purchases more than 66% of the available seats on AAY's aircraft shall be deemed to be Vacation Express flights 

ARTICLE
VI—LONG TERM COST PREDlCTABILITY

	•
	SAA
fees are fixed for first 4 years (excluding PFC's,) with the flexibility to increase as a result of a one time, "Force Majeure" like situation during the first
four years. Potential increases of up to 3% in each of years 5 through 10 are permitted. 

ARTICLE
VII—TERM; EFFECTIVE DATE; OTHER

        This
MOU shall be effective upon execution by both parties, and shall continue in full force and effect until the end of the 10 year agreement. This MOU is a binding agreement and
is enforceable according to its terms, and supercedes all previous agreements between the Parties or any of their subsidiaries or affiliates concerning the subject matter hereof. AAY shall be required
to execute and comply with airport use agreements, terminal use agreements, and other governing law, rules, regulations and policies as a condition of operation at Orlando Sanford International
Airport. 

4

 

ARTICLE
VIII—DISPUTE RESOLUTION

        This
MOU shall be governed by and construed in accordance with the laws of the state of Florida, and the parties further agree that any dispute arising out of this MOU shall be resolved
in the state courts of Florida. 

        AAY
and SAA agree to the provisions of the Memorandum of Understanding as indicated by the signatures of their duly authorized officers below. 

	Allegiant Air, LLC	 	Sanford Airport Authority
	

By:	

/s/  ANDREW C. LEVY      	
 	

By:	

/s/  LARRY A. DALE      
	 	
	 	 	

	

Title:	

Managing Director	
 	

Title:	

President
	 	
	 	 	

	

Date:	

3/4/05	
 	

Date:	

3/4/05
	 	
	 	 	

5

QuickLinks

MEMORANDUM OF UNDERSTANDING BETWEEN Allegiant Air, LLC AND SANFORD AIRPORT AUTHORITY

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