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Exhibit 10.19  

 
 

EMPLOYMENT AGREEMENT    
    

        THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered into as of the 31st day of July, 2006 by and between Michael Baxter (hereinafter "Employee"), whose
address is 3301 N. Buffalo Drive, Suite B-9, Las Vegas, Nevada 89129, and ALLEGIANT TRAVEL COMPANY, a Nevada corporation (hereinafter "the Company"), whose address is 3301 N. Buffalo
Drive, Suite B-9, Las Vegas, Nevada 89129. 

 
 

W I T N E S S E T H    

        WHEREAS, the Company desires to employ Employee as an officer and managing director and Employee desires to be so employed pursuant to and
in accordance with the terms and conditions hereinafter set forth; and 

        NOW, THEREFORE, for and in consideration of the above premises, the terms and covenants herein contained, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged by Employee and the Company, it is hereby agreed as follows: 

        1.    Employment.    The Company hereby employs Employee and Employee hereby accepts employment by the Company upon
all of the terms and conditions as are hereinafter set forth. Terms of employment with the Company are also governed by the Company's employment policies in effect from time to time. The Company shall
provide a copy of such employment policies to Employee upon request. In the event of any conflict between the terms of this Agreement and the generally applicable employment policies, the terms of
this Agreement shall prevail. 

        2.    Scope of Services.    

        A.    Employee
shall be employed by the Company as its Senior Vice President of Operations with responsibility for all aircraft operations of Allegiant Air, including
supervision of maintenance, flight operations and stations. Employee shall report to the Company's CEO. Employee's duties shall include those indicated above and such other duties assigned to him by
the CEO and the Board of Directors (the "Board") from time to time. 

        Employee's
services are mutually agreed to be unique personal services. Employee acknowledges that the Company is relying upon Employee's experience, expertise and other qualifications
in entering into this Agreement. Employee shall not assign or delegate any right, obligation or duty hereunder to any other person or entity without the express written consent of the Company. 

        B.    During
Employee's period of service hereunder, Employee agrees to perform such services not inconsistent with Employee's position as shall from time to time be assigned
to Employee by the Company's Board. During the term of this Agreement, except for disability, illness and vacation periods, Employee shall devote Employee's full productive time, attention and
energies to the position of managing director of the Company. 

        C.    Employee's
expenditure of reasonable amounts of time in connection with outside activities, not competitive with the business of the Company, such as outside
directorships or charitable activities, shall not be considered in contravention of this Agreement so long as such activities do not interfere with his performance of this Agreement. Further, it is
understood and agreed by the parties hereto that Employee is entitled to engage in passive and personal investment activities not interfering with his performance of this Agreement. 

        3.    Limitations of Duties.    Employee shall not, without consent first being given by the Company, which consent
may be general authority from the Company: 

        A.    Take
part in activities detrimental to the best interests of the Company, including rendering any services to any other firm or entity which conflict or interfere with
the performance of Employee's duties hereunder. 

 

        B.    Exceed
any limitations on his authority that may be established by the Board. 

        C.    Enter
into any contract, oral or written, in the name of, for or on behalf of the Company other than in the ordinary course of business. 

        D.    Use
any money belonging to the Company or pledge its credit other than in the ordinary course of business. 

        E.    Commit
or suffer to be committed any act whereby the Company's property may be subject to attachment or seizure. 

        F.     Cause
the Company to become a guarantor, surety or endorser or give any note for the benefit of any other person whomsoever. 

Upon
a breach of any provision under this Item 3, the Company shall have the right to terminate this Agreement for cause as set forth in Item 6E hereof and to pursue any other remedies available to
the Company as a result of such breach. 

Employee
shall indemnify and hold the Company harmless from and against any and all damages, actions, causes of action, claims and other liabilities, contingent or otherwise, directed toward the
Company by others as a result of Employee's violation of any of the provisions of this Item 3. 

        4.    Compensation.    

        A.    Base Compensation.    As base compensation for providing services hereunder, Employee shall be paid One Hundred
Eighty-Five Thousand Dollars ($185,000) per annum to be paid monthly or in more frequent installments as may be agreed upon by the Company and Employee. The salary payable to Employee
shall be inclusive of any fees received by Employee as an officer of the Company or any other company or corporate body in which Employee holds an office as a nominee or representative of the Company. 

        B.    Annual Bonus.    Employee shall be entitled to participate in the Company's annual bonus program (if any) as in
effect from time to time and subject to meeting any requirements established for participation in the bonus program and may also be granted a discretionary bonus in such amount as may be determined by
the Board in its sole discretion. 

        C.    Fringe Benefits.    The Company shall provide Employee health and dental insurance for Employee and his family
and such vacation time, sick leave and other fringe benefits, including but not limited to participation in any pension, 401(k) and employee benefit plans that may be maintained by the Company from
time to time as are made generally available to other management employees of the Company in accordance with Company policies. The Company reserves the right to change the benefits available under its
benefit plans at any time or times. 

        D.    Review of Compensation.    Employee's compensation package shall be subject to review each year based on
Employee's performance, achievement of company goals, industry norms for executive compensation, and such other factors as the Company may determine to be appropriate. 

        E.    Change of Control Benefits.    In the event Employee's employment with Company shall cease within two
(2) years after a "Change of Control" (as defined below) as a result of termination by the Company without "Cause" (as defined in Item 6C) or termination by Employee with "Good Reason" (as
defined in Item 6D), the Company shall pay to Employee severance pay in an aggregate amount equal to six months of the total amount of Base Salary paid by the Company to Employee in a lump sum within
one month of the date of termination of employment. 

        F.    Definition of Change of Control.    For all purposes of this Agreement, a "Change of Control" shall be deemed to
have occurred if at any time after the date this Agreement is signed: (i) by any method, transaction or series of related transactions, more than 50% of the outstanding shares of 

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Company
or beneficial ownership thereof are acquired within a period of one year by a person or group (as defined in Section 13(d) of the Securities Exchange Act of 1934) other than the members
of Company's Board, those persons who were more than 5% owners of the Company prior to the date of this Agreement, employees of the Company and any of their immediate family members and affiliates;
(ii) there is a merger or consolidation of the Company in which the Company is not the continuing or surviving entity or in which the stockholders of the Company immediately before such
transaction do not own in the aggregate at least 50% of the outstanding voting shares of the continuing or surviving entity immediately after such transaction; (iii) there is a merger or
consolidation of the Company pursuant to which the Company's shares are converted into cash, securities or other property; or (iv) the Company sells, leases or exchanges all or substantially
all of its assets or the Company's stockholders approve the liquidation or dissolution of the Company. 

        G.    Expense Reimbursement.    In addition, the Company shall reimburse Employee for any expenses incurred by
Employee in connection with the business of the Company, as approved by the Company. These expenses may include expenses for travel, business promotion, association memberships, and any other expenses
as may be approved by the Company from time to time. The Company shall reimburse Employee for such out-of-pocket expenses by the tenth (10th) day of the month following the
month in which such expenses were incurred (and appropriate documentation thereof has been provided to the Company). The Company may issue to Employee a company credit
card. In such event, Employee agrees to use such card only for the expenses reimbursable under this paragraph G. Employee agrees to keep the card securely. In the event of loss or theft, the
issuing authority and the Company shall be informed immediately. The card shall be returned to the Company forthwith on the termination of Employee's employment for any reason whatsoever. 

        H.    Deductions.    Deductions shall be made from Employee's salary for social security, Medicare, federal and state
withholding taxes, and any other such taxes as may from time to time be required by governmental authority. 

        5.    Term.    The initial term of this Agreement shall commence as of the effective date of Company's initial public
offering (the "Effective Date") and shall continue for a period of three (3) years. The term shall automatically be extended from year to year thereafter unless either party notifies the other
of its desire not to extend the term of this Agreement as provided in Item 6. 

        6.    Termination:    

        A.    This
Agreement shall be terminated upon Employee's death or upon a physician certified disability which permanently or indefinitely renders Employee unable to perform his
usual duties on behalf of the Company. 

        B.    Employee
may, without "Good Reason" (as defined in paragraph D below), terminate this Agreement by giving to the Company sixty (60) days written notice and
such termination shall be effective on the date specified by Employee but in no event earlier than the sixtieth (60th) day following the date of such notice. In such event, Employee shall continue to
render his services up to the Termination Date (as hereinafter defined) if so requested by the Company. For all purposes of this Agreement, it shall be deemed that Employee terminated this Agreement
without cause if this Agreement expires at the end of the initial or any extended term of this Agreement as a result of a notice from Employee not to extend the term of this Agreement. 

        C.    The
Company may, without "Cause" (as defined in paragraph E below), terminate this Agreement at any time by giving to Employee thirty (30) days written
notice and such termination shall be effective on the date specified by the Company but in no event more than the thirtieth (30th) day following the date of such notice. At the option of the Company,
Employee shall immediately cease performing his duties hereunder upon receipt of the notice. For all purposes of this Agreement, it shall be deemed that the Company terminated this Agreement without
cause if this Agreement expires at 

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the
end of the initial or any extended term of this Agreement as a result of a notice from the Company not to extend the term of this Agreement. If terminated without Cause pursuant to this
paragraph C, Employee shall continue to receive his full base salary and related fringe benefits for the six months following Employee's termination except that these benefits shall not apply
in the event of termination without Cause after a Change in Control; in which event, the provisions of Item 4E shall apply. 

        D.    Employee
may terminate this Agreement immediately for "Good Reason." For purposes of this Agreement, Good Reason shall be defined as (i) failure of the Company to
make any payment or provide any benefit to Employee hereunder, which failure is not cured within thirty (30) days after the Company's receipt of written notice of such default, or (ii) a
material diminution of Employee's duties and responsibilities or his title without Employee's consent, or (iii) the principal location at which Employee is to perform his duties is relocated to
a place more than fifty (50) miles from Las Vegas, Nevada. Any termination under this paragraph D shall take effect immediately upon the Company's receipt of written notice from Employee
after the expiration of any applicable cure period. If Employee terminates this Agreement for "Good Reason" pursuant to this paragraph D, Employee shall continue to receive his full base salary
and related fringe benefits for six (6) months following Employee's termination except that these benefits shall not apply in the event of termination of employment by Employee for Good Reason
after a Change of Control; in which event, the provisions of Item 4E shall apply. 

        E.    The
Company may terminate this Agreement immediately for "Cause." For purposes of this Agreement, "Cause" shall be defined as any of the following: (i) Employee
shall commit a felony or other act involving moral turpitude, which other act is materially detrimental to the Company; (ii) Employee shall knowingly commit any act of prohibited conduct as set
forth in Item 3 of this Agreement; (iii) Employee shall commit any act, specifically including but not limited to drug or alcohol abuse, which act is materially harmful to the Company, or which
in the reasonable opinion of the Company's Board brings the Company into disrepute; (iv) Employee shall commit any act of fraud, dishonesty, theft or misappropriation, whether or not related to
his activities on behalf of the Company, including providing false reports or accounts to the Company or deliberately making false statements about the Company, its services, employees, customers or
suppliers; (v) intentional or repeated material neglect of Employee's duties; (vi) breach by Employee of any other material provision of this Agreement; (vii) Employee shall
become the subject of a bankruptcy proceeding or otherwise make an arrangement or composition with creditors generally; (viii) Employee shall engage in anti-social behavior (such as
fighting, indecency, harassment, sexual or racial harassment or discrimination, intimidation of others, physical violence or assault) during the course of performing duties for the Company or against
another employee outside of work; (ix) Employee shall have possession of illegal drugs at the Company's workplace; or (x) Employee shall perform duties in a negligent or dangerous manner
which causes or is likely to cause material loss or injury. This Agreement shall not be terminated by the Company under subclause (v) or (vi) of this Item unless and until the Company
has provided Employee with written notice of such violative conduct and Employee has failed to cure (or fails to commence and thereafter diligently pursue the cure) such act within thirty
(30) days after Employee's receipt of such written notice; provided, however, that no right to cure shall be available for a second or subsequent violation of the same provision within any
twelve (12) month period. Any termination under this paragraph E shall take effect immediately upon Employee's receipt of written notice from the Company or expiration of any applicable
cure period, whichever is later. The failure of the Company to terminate this Agreement for cause as a result of any of the foregoing at any one or more times shall not affect the Company's ability to
terminate this Agreement for cause as a result of the subsequent occurrence of any act giving rise to "cause" hereunder, provided that Employee is still provided with a notice to cure if applicable in
accordance with the above. 

        F.     Upon
termination, Employee shall have no obligation to provide any additional services, and except as expressly provided above, the Company shall only be obligated pay to
Employee the portion 

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of
any amounts due as of the termination date, together with all unreimbursed out-of-pocket expenses incurred by Employee. 

        G.    Termination of Employee's Obligations.    Employee's obligations under Item 7 of this Agreement shall survive
the expiration of the term of this Agreement without renewal and termination of Employee's employment as provided in such Item. 

        H.    Resignation of Positions upon Termination.    On the termination of this Agreement for any reason whatsoever,
Employee shall at the request of the Company immediately resign (without prejudice to any claims which Employee may have against the Company arising out of this Agreement or the termination thereof)
from all and any offices which Employee may hold as an officer or member of the
Board of the Company and from all other appointments or offices which Employee holds as a nominee or representative of the Company and if Employee should fail to do so, the Company is hereby
irrevocably authorized to appoint another person in Employee's name and on Employee's behalf to sign any documents or do any thing necessary or requisite to effect such resignation(s) and/or
transfers. 

        I.    Termination Date.    For all purposes of this Agreement the "Termination Date" shall refer to the effective date
of termination as set forth above. 

        7.    Restrictive Covenants.    As a material inducement to the Company's employment of Employee, the provisions of
this Item 7 shall apply. 

        A.    For
purposes of this Item, the following terms and provisions shall have the following meanings: 

        (i)    "Prohibited
Time Period" shall mean the period beginning on the date of execution hereof and ending on the date that is six (6) months after the termination of
employment for any reason whatsoever of Employee. 

        (ii)   "Prohibited
Business" shall mean the business of providing charter or scheduled airline service. 

        (iii)  "Prohibited
Geographic Area" shall mean the conduct of the Prohibited Business to or from markets in the states of California, Nevada or Florida. 

        (iv)  "Prohibited
Party" shall mean all travel partners of the Company who (a) have contracted for regular chartered air service with the Company during the one
(1) year period prior to the date of termination of employment, or (b) have been solicited as potential travel partners of the Company at a meeting held at any time during the one
(1) year period prior to the date of termination of employment of Employee. 

        (v)   "Prohibited
Employee" means any employee, independent contractor or consultant of the Company who worked for the Company at any time within six (6) months prior
to the termination of employment of Employee. 

        (vi)  The
"Western United States" includes the states of Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and
Wyoming. 

        B.    Employee
agrees that during the Prohibited Time Period, he shall not, for any reason, without the prior written consent of the Company, on his own behalf or in the
service or on behalf of others, be involved in the Prohibited Business in the Prohibited Geographic Area or otherwise compete with the Company's operation of the Prohibited Business in the Prohibited
Geographic Area, whether as an owner, stockholder, partner, employee, consultant, agent, independent contractor or otherwise; provided, however, that this restriction shall not preclude Employee from
working (in any capacity) for an airline that provided airline service to or from the Western United States or to or from Florida prior to 1990 so long as the airline is not headquartered within the
Western United States. 

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        C.    Employee
covenants and agrees that during the Prohibited Time Period, he shall not, for any reason, directly or indirectly (whether as officer, director, consultant,
employee, representative, agent, partner, owner, stockholder or otherwise), (i) solicit charter air services from, or market charter air services to, any Prohibited Party, or (ii) enter
into a transaction with such Prohibited Party as a result of which the Prohibited Party does, or is likely to, reduce the amount of business between the Prohibited Party and the Company. 

        D.    Employee
agrees that during the Prohibited Time Period, he shall not, for any reason, without the prior written consent of the Company, on his own behalf or in the
service or on behalf of others, hire any Prohibited Employee or request or induce any Prohibited Employee to terminate that person's employment or relationship with the Company or to accept employment
with any other person. 

        E.    The
parties agree that: (i) the covenants and agreements of Employee contained in this Item are reasonably necessary to protect the interests of the Company in
whose favor said covenants and agreements are imposed in light of the nature of the Company's business and the professional involvement of Employee in such business; (ii) the restrictions
imposed by this Item are not greater than are necessary for the protection of the Company in light of the substantial harm that the Company will suffer should Employee breach any of the provisions of
said covenants or agreements; (iii) the covenants and agreements of Employee contained in this Item have been independently negotiated between the parties and served as a material inducement
for the Company to enter into this Agreement; (iv) the period and geographical area of restriction referred to in this Item are fair and reasonably required for the protection of the Company;
and (v) the nature, kind and character of the activities Employee is prohibited to engage in are reasonable and necessary to protect the Company in that the Company will rely on Employee for
those important aspects of its business. 

        F.     Employee
acknowledges that a material breach by Employee of any part of this Item will result in irreparable and continuing damage to the Company and any material breach
or threatened breach of the covenants provided in this Item shall be subject to specific performance by temporary as well as permanent injunction or any other equitable remedies of any court of
competent jurisdiction. 

        G.    The
covenants and agreements on the part of Employee contained in this Item shall be construed as agreements independent of any other agreement between Employee and the
Company. The existence of any claim or cause of action of Employee against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the
Company of each of such covenants and agreements or otherwise affect the remedies to which the Company is entitled hereunder. 

        H.    If
the provisions of this Item 7 should ever be adjudicated to exceed the time, geographic or other limitations permitted by applicable law in any jurisdiction, then such
provisions shall be deemed reformed in such jurisdiction to the maximum time, geographic or other limitation permitted by applicable law. 

        I.     Nothing
contained in this Item shall restrict Employee from being a not more than 1% stockholder (but not an officer, director, employee, consultant or advisor) of any
corporation that directly or indirectly competes with the Company provided the stock of such competing corporation is publicly held and listed on a national stock exchange. 

        8.    Company Property.    

        A.    Employee
acknowledges that all recorded information, including without limitation all notes, memoranda, records, laboratory reports, documents, papers, computer disks,
tapes or other storage media and all other papers and documents whatsoever which may have been prepared by Employee or have come into Employee's possession or control in the course of employment with
the Company (the "Documents") and other materials owned or used by the Company shall at all times remain the sole property of the Company. 

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        B.    Employee
agrees to promptly, upon request of the Company and in any event upon the termination of Employee's employment with the Company for any reason whatsoever,
forthwith return to the Company all property whatsoever belonging to the Company including, without limitation, any laptop computer belonging to the Company, security passes, credit cards and all
copies of the Documents which have come into Employee's possession or control in the course of employment with the Company and Employee shall not be entitled to and shall not retain any copies
thereof. 

        9.    Professional Responsibility.    

        A.    Employee
agrees that he will provide in connection with the performance of all services under this Agreement the skill and diligence normally provided by competent
professionals in the performance of services similar to that contemplated by this Agreement. 

        B.    Both
parties acknowledge and agree that a fiduciary and confidential relationship has commenced and will continue to exist between them and that said relationship will
continue during the term of this Agreement. 

        C.    Employee
represents that he has no conflicts of interest in rendering his professional services to the Company. 

        D.    Employee
shall not during the course of his employment (except as a representative or nominee of the Company or otherwise with the prior consent in writing of the Board)
be directly or indirectly engaged, concerned or interested in any other business which: (i) is wholly or partly in competition with any business carried on by the Company by itself or in
partnership, common ownership or as a joint venture with any third party; or (ii) is a supplier to or customer of the Company, provided that Employee may own not more than one percent (1%) of
the issued shares of any company which is publicly held and listed on a national stock exchange or on the National Market tier of the Nasdaq Stock Market, Inc. 

        E.    Subject
to any regulations from time to time issued by the Company, Employee shall not receive or obtain directly or indirectly any discount, rebate, commission or other
inducement in respect of any sale or purchase of any goods or services effected or other business transacted (whether or not by Employee) by or on behalf of the Company and if Employee (or any firm or
company in which Employee is directly or indirectly engaged, concerned or interested) shall obtain any such discount, rebate, commission or inducement, Employee shall account to the Company for the
amount received by Employee or the amount received by such firm or company. 

        F.     As
an inducement to the Company to enter into this Agreement, Employee represents and warrants that: (i) he is not a party to any other agreement or obligation for
personal services; (ii) there exist no impediments or restraints, contractual or otherwise, on Employee's power, right or ability to enter into this Agreement and to perform his duties and
obligations hereunder; (iii) the performance of his obligations under this Agreement do not and will not violate or conflict with any agreement relating to confidentiality,
non-competition or exclusive employment to which Employee is or was subject; and (iv) Employee has not been involved in any legal proceedings that would be required to be disclosed
in response to Item 401(f) of Regulation S-K promulgated under the Securities Act of 1933, as amended. As an inducement to Employee to enter into this Agreement, the Company
represents and warrants that there exist no impediments or restraints, contractual or otherwise, on the Company's power, right or ability to enter into this Agreement and to perform its duties and
obligations hereunder. 

        10.    Privacy Waivers.    

        A.    The
Company reserves the right to stop and search any employee or property of any employee when entering or leaving the Company's premises. 

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        B.    The
Company reserves the right to monitor at any time telephone calls, electronic communications and information transmitted on Company networks or on computer equipment
which is owned by the Company or on computers on Company premises that are used for Company business. 

        11.    Notice.    All notices required or sent hereunder shall be sent by personal delivery, overnight priority mail
via a nationally recognized overnight delivery company, or by certified mail, return receipt requested to the address of the party entitled to receive the notice as set forth above. Notices sent in
accordance with this paragraph shall be deemed received upon personal delivery, twenty-four (24) hours after delivery to a nationally recognized overnight delivery company or five
(5) days after mailed, as aforesaid. 

        12.    Breach by the Company.    If there is a dispute regarding the payment of any sum by the Company hereunder, the
Company shall not be deemed to have failed to have made a payment hereunder if pending the resolution of such dispute, the Company pays the amount in dispute into court or into an escrow account at
the Company's bank or with the Company's counsel. 

        13.    Remedies Not Exclusive.    The rights, remedies and benefits herein expressly specified are cumulative and not
exclusive of any rights, remedies or benefits which any party may otherwise have. 

        14.    Invalid Provisions.    The invalidity of any one or more of the clauses or words contained in this Agreement
shall not affect the reasonable enforceability of the remaining provisions of this Agreement, all of which are inserted herein conditionally upon being valid in law; and in the event that one or more
of the words or clauses contained herein shall be invalid, this instrument shall be construed as if such invalid words or clauses had not been inserted or, alternatively, said words or clauses shall
be reasonably limited to the extent that the applicable court interpreting the provisions of this Agreement considers to be reasonable. 

        15.    Binding Effect.    This Agreement, as it relates to restrictions applicable to Employee, is a personal contract
and the rights and interests of Employee hereunder may not be sold, transferred, assigned, pledged or hypothecated. However, this Agreement shall inure to the benefit of and be binding upon
Company and its successors and assigns including, without limitation, any corporation or other entity into which Company is merged or which acquires all or substantially all of the outstanding
ownership interests or assets of Company. 

        16.    Jurisdiction.    Each of the undersigned further agrees that any action or proceeding brought or initiated in
respect of this Agreement may be brought or initiated in the United States District Court for the State of Nevada or in any District Court located in Clark County, Nevada, and each of the undersigned
consents to the exercise of personal jurisdiction and the placement of venue in any of such courts, or in any jurisdiction allowed by law, in any such action or proceeding and further consents that
service of process may be effected in any such action or proceeding in the manner provided in Section 14.065 of the Nevada Revised Statutes or in such other manner as may be permitted by law.
Each of the undersigned further agrees that no such action shall be brought against any party hereunder except in one of the courts above named. 

        17.    Attorney's Fees.    In the event an action is taken by either party to enforce this Agreement or resolve a
dispute in connection herewith, the prevailing party shall be entitled to recover the costs incurred with the prosecution and defense of such action, including reasonable attorney's fees. 

        18.    Miscellaneous.    This Agreement shall be construed under and governed by the laws of the State of Nevada other
than its conflicts of laws principles. This Agreement contains the complete understanding of the parties with respect to the subject matter of this Agreement and supersedes all prior agreements,
understandings and negotiations relating to the same subject matter. This Agreement may only be modified by a written instrument signed by each of the parties hereto. No provisions 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 

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extent
to which any such provision is inconsistent with any prior draft hereof or thereof. Failure to require strict compliance with any term or provision of this Agreement shall not constitute a
waiver of a party's right to insist upon strict compliance with each and every provision of this Agreement. No waiver of any terms and conditions of this Agreement shall be deemed to be a waiver of
any subsequent breach of that or any other term of condition. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together
shall constitute one and same instrument. This Agreement may be executed by any party by delivery of a facsimile signature, which signature shall have the same force as an original signature. Any
party which delivers a facsimile signature shall promptly thereafter deliver an originally executed signature to the other party; provided, however, that the failure to deliver an original signature
page shall not affect the validity of any signature delivered by facsimile. The paragraph headings contained in this Agreement are for reference only and shall not be deemed to impart substantive
meeting to any provision of this Agreement. Each party has had the opportunity to be represented by counsel of its choice in negotiating this Agreement. This Agreement shall therefore be deemed to
have been negotiated and prepared at the joint request and direction of the parties, at arm's length, with the advice and participation of counsel, and shall be interpreted in accordance with its
terms and without favor to any party. 

        IN WITNESS WHEREOF, this Agreement has been signed, sealed and delivered as of the date and year first above written. 

	 	 	EMPLOYEE:
	

 	
 	

 MICHAEL BAXTER
	

 	
 	
COMPANY:
	

 	
 	
ALLEGIANT TRAVEL COMPANY
	

 	
 	

By:	

 
	 	 	 	

	

 	
 	

Title:	

 
	 	 	 	

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Exhibit 4.2  

 
 

REGISTRATION RIGHTS PROVISIONS    
    

        This Exhibit D sets forth the agreement of the parties regarding registration of shares of LINTA issued as consideration in the Merger or as Deferred
Merger Payment. 

ARTICLE I  

 DEFINITIONS  

        Section 1.01.    Certain Defined Terms.    All capitalized terms not otherwise defined herein have the meanings
ascribed thereto in the Merger Agreement. The following terms, as used in this Exhibit, have the meanings set forth below: 

        "Affiliate" means with respect to any specified Person, an "affiliate," as defined in Rule 144, of such Person. 

        "Applicable Effective Period" means, subject to the final sentence of Section 2.03 hereof, with respect to any particular Liberty
Shares, the earlier of (i) the one year anniversary of the issuance of such Liberty Shares and (ii) the date such Liberty Shares cease to be Registrable Securities. All Liberty Shares
other than those constituting Deferred Merger Payments (including Escrowed Shares) shall be deemed to have been issued by Parent on the Closing Date, and all Liberty Shares constituting Deferred
Merger Payments shall be deemed to have been issued by Parent on the Deferred Payment Date. 

        "Board of Directors" means the Board of Directors of Parent or any authorized committee thereof (including the executive committee). 

        "Disadvantageous Condition" has the meaning set forth in Section 2.03. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated by the SEC thereunder. 

        "Indemnified Party" has the meaning set forth in Section 4.03. 

        "Indemnifying Party" has the meaning set forth in Section 4.03. 

        "Liberty Shares" means (i) the shares of LINTA issued to the Securityholders at the effective time of the Merger and
(ii) the shares of LINTA issued to the Securityholders constituting the Deferred Merger Payments, and any and all shares of LINTA which may be issued in respect thereof in any recapitalization
or other capital reorganization, by way of a stock split, stock dividend or other distribution or in connection with a merger, consolidation or other reorganization involving Parent. 

        "Permitted Transferee" has the meaning set forth in Section 2.06. 

        "prospectus" means, as of any date, the prospectus forming part of the Shelf Registration Statement and any and all current prospectus
supplement(s) relating thereto. 

        "prospectus supplement" means a prospectus supplement to the prospectus, including those filed pursuant to Rule 424 under the
Securities Act. 

        "Records" has the meaning set forth in Section 3.01(g). 

        "Registrable Securities" means the Liberty Shares; provided that any particular Liberty
Shares will cease to be Registrable Securities (i) if and when such Liberty Shares shall have been disposed of pursuant to the Shelf Registration Statement, (ii) if and when such Liberty
Shares shall have been sold to a Person other than a Permitted Transferee, (iii) if and when such Liberty Shares shall have ceased to be outstanding or (iv) on the one year anniversary
of the issuance of such Liberty Shares by Parent to a Securityholder (or its assignee); provided that such one year period shall be extended for a
number of days equal to the total number of days for which the distribution of such Registrable Securities 

 

included
in the Shelf Registration Statement has been suspended pursuant to Section 2.03 hereof; provided further that any such Liberty Shares
that have ceased to be Registrable Securities pursuant to clauses (i) or (ii) above cannot thereafter become Registrable Securities, and any Liberty Shares that are issued or distributed
following the date of such sale specified in clauses (i) or (ii) above by way of dividends in respect of such Liberty Shares that have ceased to be Registrable Securities shall not be
Registrable Securities. 

        "Registration Expenses" means all (i) registration, qualification and filing fees with the SEC, (ii) fees and expenses of
compliance with securities or blue sky laws, (iii) printing expenses, (iv) Parent's internal expenses (including, without limitation, all salaries and expenses of officers and employees
performing legal or accounting duties), (v) fees and disbursements of Parent's counsel, (vi) customary fees and expenses for independent certified public accountants retained by Parent,
(vii) fees and expenses of any special experts retained by Parent in connection with such registration and (viii) fees and expenses of listing the Registrable Securities on a securities
exchange; but shall not include any fees or commissions attributable to the sale of Registrable Securities or any fees and expenses of counsel for any Securityholder. 

        "Rule 144" means Rule 144 under the Securities Act. 

        "Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations promulgated by the SEC thereunder. 

        "Securityholder" means each of the stockholders of the Company and each holder of an Equity Right, in each case named on the signature
pages to the Joinder Agreement and any of their Permitted Transferees, so long as such Person owns Registrable Securities. 

        "Securityholders Counsel" means Foley & Lardner LLP, or such other law firm of national reputation as my be selected by the
Securityholders' Representative and notified in writing to Parent. 

        "SEC" means the Securities and Exchange Commission. 

        "Shelf Registration Statement" means a shelf registration statement on an appropriate form selected by Parent (including the prospectus
forming a part thereof and all amendments thereto) registering the resale from time to time of Registrable Securities by the Securityholders pursuant to Rule 415 under the Securities Act. 

ARTICLE II  

 REGISTRATION RIGHTS  

        Section 2.01.    Filing of Shelf Registration Statement.    Parent shall use commercially reasonable efforts to
prepare, file and have made effective under the Securities Act, by or before the Closing Date, the Shelf Registration Statement. Before the initial
filing of the Shelf Registration Statement with the SEC (and before any subsequent pre-effective filing thereof with the SEC if the Shelf Registration Statement is not an automatic shelf
registration statement within the meaning of Rule 405 at the time of initial filing), Parent shall provide the Securityholders Counsel with a reasonable opportunity to review and comment on the
Shelf Registration Statement (except that Parent shall have no such obligation with respect to any documents incorporated by reference therein, other than prospectus supplements). 

        Section 2.02.    Effectiveness of Shelf Registration Statement.    

        (a)   Subject
to Section 2.03, for so long as any Registrable Securities are outstanding, Parent shall use commercially reasonable efforts to keep the Shelf
Registration Statement continuously effective during the Applicable Effective Period. Parent shall notify the Securityholders Counsel of any stop order issued or threatened by the SEC with respect to
the Shelf Registration Statement 

2

 

and
shall take commercially reasonable actions to prevent the entry of a threatened stop order or to remove a stop order if entered. 

        (b)   If
the Shelf Registration Statement ceases to be effective for any reason at any time during an Applicable Effective Period, Parent shall, subject to
Section 2.03, use its commercially reasonable efforts to promptly amend the Shelf Registration Statement (including by means of filing a document that is incorporated by reference therein or by
preparing and, if required, filing a prospectus supplement) in a manner reasonably expected by Parent to cause the Shelf Registration Statement to again become effective under the Securities Act. 

        Section 2.03.    Blackout Periods.    If the Board of Directors shall determine, in its good faith judgment,
that to effect or maintain the effectiveness of the Shelf Registration Statement would (i) require the public disclosure of material non-public information concerning any
transaction or negotiations involving Parent or any of its Affiliates that the Board of Directors believes, in good faith, would materially interfere with such transaction or negotiations or
(ii) otherwise require premature disclosure of information, in either case that the Board of Directors believes, in good faith, would be significantly disadvantageous to Parent or any of its
Affiliates (a "Disadvantageous Condition"), then Parent may, for a period not to exceed 45 calendar days and in any event, as to any particular
Registrable Securities, for no more than 90 calendar days in the aggregate during the Applicable Effective Period for such Registrable Securities, notify those Securityholders who are named in the
Shelf Registration Statement and who have Registrable Securities covered thereby that such registration statement is unavailable for use. Upon the receipt of any such notice, the Securityholders shall
forthwith discontinue use of the prospectus contained in the Shelf Registration Statement. Parent shall promptly notify the Securityholders who are named in the Shelf Registration Statement and who
have Registrable Securities covered thereby when a Disadvantageous Condition shall cease to exist and the Shelf Registration Statement is again available for use. In the event of a suspension pursuant
to this Section 2.03, the Applicable Effective Period of the Shelf Registration Statement shall be extended for a number of days equal to the total number of days for which the distribution of
Registrable Securities included in the Shelf Registration Statement by the Securityholders named in the Shelf Registration Statement has been suspended under this Section 2.03. 

        Section 2.04.    Plan of Distribution.    Each Securityholder shall be named as a selling securityholder in the
prospectus. The "Plan of Distribution" section of the prospectus shall be substantially in the form of Annex A hereto and shall contain such other
information as is required by applicable SEC regulations or conforms with applicable SEC practice. Each Securityholder agrees to dispose of its Registrable Securities under the Shelf Registration
Statement solely in accordance with such "Plan of Distribution" section of the prospectus. 

        Section 2.05.    Expenses.    Parent shall pay all Registration Expenses in connection with the registration of
Registrable Securities pursuant to this Article II. Each Securityholder shall pay all fees and expenses of counsel for such Securityholder and all broker fees or commissions relating to the
sale or disposition of such Securityholder's Registrable Securities pursuant to any Shelf Registration Statement, and the Securityholders as a group shall be responsible for the fees and expenses of
the Securityholders Counsel. 

        Section 2.06.    Transfer of Shelf Registration Rights.    Each Securityholder shall have the right to
transfer, by written agreement, any or all of its rights granted under this Agreement to any direct or indirect transferee of such Securityholder's Registrable Securities (a
"Permitted Transferee"); provided, (i) such transferee is an "accredited investor" as such term
is defined in Rule 501 of Regulation D promulgated under the Securities Act, (ii) such transferee agrees, in writing in form and substance reasonably satisfactory to Parent, to be
bound by the terms and provisions of this Agreement (it being specifically understood that any sale of Registrable Securities by a Permitted Transferee shall be in accordance with the "Plan of
Distribution" section of the prospectus, substantially in the form of Annex  

3

 

 A hereto); and (iii) such transfer shall be effected in accordance with applicable securities laws and any agreements between Parent and such Securityholder and Parent
may require receipt of a legal opinion of counsel to such Securityholder regarding compliance with such laws and agreements. Following any transfer or assignment made pursuant to this
Section 2.06, such Securityholder shall retain all rights under this Agreement with respect to any Registrable Securities that continue to be held by such Securityholder. 

ARTICLE III  

 REGISTRATION PROCEDURES  

        Section 3.01.    Registration Procedures.    In connection with the registration in respect of Registrable
Securities contemplated by Article II: 

        (a)   Parent
will prepare and file with the SEC the Shelf Registration Statement and use commercially reasonable efforts to cause such filed registration statement to become
and remain effective in accordance with the terms of Article II. 

        (b)   Parent
shall, at least (i) three days prior to filing a registration statement or any amendment thereto and (ii) one day prior to filing any prospectus
supplement, furnish to the Securityholders Counsel a copy thereof for its review and comment, and Parent will not file with the SEC any such registration statement, amendment or prospectus supplement
over the reasonable objection of such counsel. Parent will furnish to the Securityholders' Representative such number of copies of the prospectus included in the effective Shelf Registration Statement
as the Securityholders Counsel may request in order to facilitate the disposition of the Registrable Securities by the Securityholders. 

        (c)   After
the filing of the Shelf Registration Statement, Parent will promptly notify each Securityholder of Registrable Securities covered by such registration statement of
the effectiveness thereof and of any stop order issued or threatened by the SEC and, subject to Article II, take all commercially reasonable actions required to prevent the entry of such stop
order or to remove it if entered and promptly notify such Securityholder of such lifting or withdrawal of such order. 

        (d)   Parent
will use commercially reasonable efforts to (i) register or qualify the Registrable Securities under such other securities or blue sky laws of such
jurisdictions in the United States as any holder of Registrable Securities covered by the Shelf Registration Statement reasonably (in the light of such Securityholder's intended plan of distribution)
requests and (ii) cause such Registrable Securities to be registered with or approved by such other governmental agencies or authorities as may be necessary by virtue of Parent's business and
operations and do any and all other acts and things that may be reasonably necessary or advisable to enable such Securityholder to consummate the disposition of the Registrable Securities owned by
such Securityholder; provided that Parent will not be required to (w) qualify generally to do business in any jurisdiction where it would not
otherwise be required to qualify but for this Section 3.01 (d), (x) conform its capitalization or the composition of its assets at the time to the securities or blue sky laws of any such
jurisdiction, (y) subject itself to taxation in any such jurisdiction or (z) consent to general service of process in any such jurisdiction. 

        (e)   Parent
will immediately notify each Securityholder whose Registrable Securities are covered by the Shelf Registration Statement, at any time when a prospectus relating
thereto is required to be delivered under the Securities Act, of the occurrence of an event requiring the preparation of a supplement to such prospectus or an amendment to the Shelf Registration
Statement so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus will not contain an untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not misleading, and 

4

 

subject
to Section 2.03 Parent will promptly prepare and furnish to each such Securityholder a prospectus supplement or an amended prospectus so that, as thereafter delivered to the purchasers
of such Registrable Securities, such prospectus will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances in which they were made, not misleading. 

        (f)    Parent
will take such other actions as are reasonably required in order to expedite or facilitate the disposition of any Registrable Securities;  provided, however, that nothing contained herein shall require
Parent to enter into an underwriting agreement or take any other action which would
enable the Securityholders to sell their Registrable Securities in an underwritten offering. 

        (g)   Parent
will make available for inspection by the Securityholders Counsel such financial and other records and pertinent corporate documents of Parent (collectively, the
"Records") as shall be reasonably necessary to enable the Securityholders to exercise their due diligence responsibility;  provided that in no
event shall Parent be required to make available to such counsel any information which Parent determines to be competitively sensitive. Records which Parent determines, in good faith, to be
confidential and which it notifies the Securityholders Counsel are confidential shall not be disclosed unless (i) the disclosure of such Records is necessary to avoid or correct a misstatement
or omission in the prospectus or (ii) the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction. Each Securityholder agrees that any
information shared with it as a result of such inspections shall be deemed confidential and shall not be used by it as the basis for any market transactions in the securities of Parent or its
Affiliates unless and until such is made generally available to the public. Each Securityholder further agrees that it will, upon learning that disclosure of any such Records is sought in a court of
competent jurisdiction, give notice to Parent and allow Parent, at its expense, to undertake appropriate action to prevent disclosure of Records deemed confidential. 

        (h)   Parent
will otherwise use commercially reasonable efforts to comply in all material respects with all applicable rules and regulations of the SEC, and make available to
its securityholders as promptly as practicable an earnings statement covering a period of twelve months beginning immediately after the Shelf Registration Statement is initially made effective under
the Securities Act, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 promulgated thereunder. 

        (i)    Parent
will use commercially reasonable efforts to cause all Registrable Securities to be listed on the principal securities exchange or national quotation system on
which securities of the same class and series of Parent are then listed or quoted. 

        (j)    Parent
will prepare and file with the SEC promptly such prospectus supplements as may be required under the Securities Act in connection with the distribution of the
Registrable Securities. Parent may require each Securityholder whose Registrable Securities are covered by the Shelf Registration Statement promptly to furnish in writing to Parent such information
regarding the Securityholder and/or or the distribution of its Registrable Securities as Parent may from time to time reasonably request and such other information as may be legally required in
connection with such distribution. Parent shall not be required to include the Registrable Securities of any Securityholder in the Shelf Registration Statement if such Securityholder does not promptly
furnish in writing to Parent all information reasonably requested by Parent regarding such Securityholder and/or or the distribution of its Registrable Securities. 

        (k)   Each
Securityholder agrees that, upon receipt of any notice from Parent of the happening of any event of the kind described in Section 3.01(e), such
Securityholder will forthwith discontinue disposition of Registrable Securities pursuant to the prospectus covering such Registrable Securities until such Securityholder's receipt of the copies of the
supplemented or amended prospectus contemplated by Section 3.01(e). 

5

 

ARTICLE IV  

 INDEMNIFICATION  

        Section 4.01.    Indemnification By Parent.    Parent agrees to indemnify and hold harmless to the fullest
extent permitted by law each Securityholder whose Registrable Securities are covered by the Shelf Registration Statement, its officers, directors and each Person, if any, who controls such
Securityholder within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages, liabilities, and expenses
caused by any untrue statement or alleged untrue statement of a material fact contained in the Shelf Registration Statement or any prospectus relating to such Registrable Securities (as amended or
supplemented if Parent shall have timely furnished any amendments or supplements to such prospectus), or caused by any omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, except insofar as such losses, claims, damages, liabilities or expenses are caused by any such untrue statement or omission
or alleged untrue statement or omission based upon information furnished in writing to Parent by such Securityholder or on such Securityholder's behalf in either such case expressly for use therein;  provided, that with respect to any untrue statement or omission or alleged untrue statement or omission made in any prospectus, the indemnity agreement
contained in this paragraph shall not apply to the extent that any such loss, claim, damage, liability or expense results from (a) the fact that a current copy of the prospectus was not sent or
given to the Person asserting any such loss, claim, damage, liability or expense at or prior to the written confirmation of the sale of the Registrable Securities concerned to such Person if it is
determined that Parent has provided such prospectus and it was the responsibility of such Securityholder or its agents to provide such Person with a current copy of the prospectus and such current
copy of the prospectus would have cured the defect giving rise to such loss, claim, damage, liability or expense, (b) the use of any prospectus by or on behalf of any Securityholder after
Parent has notified such Person (i) pursuant to Section 3.01(e) that such prospectus contains an untrue statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, (ii) pursuant to Section 3.01(c) that a stop
order has been issued by the SEC with respect to the Shelf Registration Statement or (iii) pursuant to Section 2.03 that a Disadvantageous Condition exists or (c) the use of any
prospectus by or on behalf of any Securityholder with respect to any Registrable Securities after such time as Parent's obligation to keep the Shelf Registration Statement effective in respect of such
Registration Securities has expired. 

        Section 4.02.    Indemnification By Securityholders of Registrable Securities.    Each Securityholder whose
Registrable Securities are included in the Shelf Registration Statement agrees, severally and not jointly, to indemnify and hold harmless to the fullest extent permitted by law (including
reimbursement of Parent for any legal or any other expenses reasonably incurred by it in investigating or defending such loss, claim, damage, liability or expense) Parent, its officers, directors and
agents and each Person, if any, who controls Parent within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the foregoing
indemnity from Parent to such Securityholder in Section 4.01, but only (i) with respect to information furnished in writing by such Securityholder or on such Securityholder's behalf, in
either case expressly for use in the Shelf Registration Statement or prospectus (including any prospectus supplement) relating to such Securityholder's Registrable Securities or (ii) to the
extent that any loss, claim, damage, liability or expense described in this Section 4.02 results from (a) the fact that a current copy of the prospectus was not sent or given to the
Person asserting any such loss, claim, damage, liability or expense at or prior to the written confirmation of the sale of the Registrable Securities concerned to such Person if it is determined that
it was the responsibility of such Securityholder or its agent to provide such Person with a current copy of the prospectus and such current copy of the prospectus would have cured the defect giving
rise to such loss, claim, damage, liability or expense, (b) the use of any prospectus by or on behalf of any 

6

 

Securityholder
after Parent has notified such Person (w) that such prospectus contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, (y) that the SEC has issued a stop order with respect to the Shelf
Registration Statement or (z) that a Disadvantageous Condition exists or (c) the use of any prospectus by or on behalf of any Securityholder after such time as the obligation of Parent
to keep the related registration statement in respect of such Securityholder's Registrable Securities effective has expired. 

        Section 4.03.    Conduct Of Indemnification Proceeding.    In case any proceeding (including any governmental
investigation) shall be instituted involving any Person in respect of which indemnity may be sought pursuant to Sections 4.01 or 4.02 (an "Indemnified
Party"), such Indemnified Party shall promptly notify the Person against whom such indemnity may be sought (the "Indemnifying
Party") in writing and the Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to such Indemnified Party, and shall
assume the payment of all fees and expenses. In any such proceeding, any Indemnified Party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the
expense of such Indemnified Party unless (i) the Indemnifying Party and the Indemnified Party shall have mutually agreed to the retention of such counsel or (ii) representation of both
parties by the same counsel would be inappropriate due to actual or potential differing or conflicting interests between them. It is understood that the Indemnifying Party, in connection with any
proceeding or related proceedings in the same jurisdiction, shall be liable only for the reasonable fees and expenses of one firm of attorneys (in addition to any local counsel) at any time for all
such Indemnified Parties, and that all such fees and expenses shall be reimbursed as they are incurred upon submission of reasonably itemized invoices that comply with Parent's standard billing
policies for outside counsel. In the case of any such separate firm for Securityholders who are entitled to indemnity pursuant to Section 4.01, such firm shall be designated in writing by the
Indemnified Party who had the largest number of Registrable Securities included in the Shelf Registration Statement at issue. The Indemnifying Party shall not be liable for any settlement of any
proceeding effected without its written consent which consent shall not be unreasonably withheld, but if settled with such consent, or if there be a final judgment for the plaintiff, the Indemnifying
Party shall indemnify and hold harmless such Indemnified Parties from and against any loss or liability (to the extent stated above) by
reason of such settlement or judgment. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending or threatened proceeding in respect
of which any Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such
Indemnified Party from all liability arising out of such proceeding. 

        Section 4.04.    Contribution.    

        (a)   If
the indemnification provided for hereunder is unavailable to an Indemnified Party in respect of any losses, claims, damages or liabilities referred to herein, then
each such Indemnifying Party, in lieu of indemnifying such Indemnified Party shall contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or
liabilities as between Parent on the one hand and each Securityholder whose Registrable Securities are covered by the Shelf Registration Statement in issue on the other, in such proportion as is
appropriate to reflect the relative fault of Parent and of each such Securityholder in connection with any untrue statement of a material fact contained in the Shelf Registration Statement or any
prospectus or caused by any omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading which are the basis of a claim, as well
as any other relevant equitable considerations. The relative fault of Parent on the one hand and of each such Securityholder on the other shall be determined by reference to, among other things,
whether the untrue statement of a material fact or the omission to state a material fact relates to information 

7

 

supplied
by such party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. 

        (b)   Parent
and the Securityholders (including each Permitted Transferee) agree that it would not be just and equitable if contribution pursuant to this Section 4.04
were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph. The amount
paid or payable by an Indemnified Party as a result of the losses, claims, damages or liabilities referred to in the immediately preceding paragraph shall be deemed to include, subject to the
limitations set forth above, any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim. Notwithstanding the
provisions of this Article IV, no Securityholder shall be required to contribute any amount in excess of the amount by which the total price at which the Registrable Securities sold by him, her
or it under the Shelf Registration Statement exceeds the amount of any damages that such Securityholder has otherwise been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who
was not guilty of such fraudulent misrepresentation. 

ARTICLE V  

 MISCELLANEOUS PROVISIONS  

        Section 5.01.    Replacement Agreement.    If necessary or appropriate (in Parent's sole discretion) to protect
the rights of the Securityholders hereunder, Parent shall cause any successor to or assignee or acquiror of Parent or all or substantially all Parent's assets (whether by merger, consolidation,
transfer or otherwise) to enter into a new registration rights agreement with each Securityholder on terms no less favorable to such Securityholder than the terms provided under this Agreement in
connection with any such transaction. 

        Section 5.02.    No Third-Party Beneficiaries.    Except as provided in Article IV, this agreement is
not intended, and shall not be deemed, to confer any rights or remedies upon any Person other than the parties specifically referred to herein and their respective successors and permitted assigns or
to otherwise create any third-party beneficiary hereto. 

        Section 5.03.    Successors; Assignment.    This agreement shall be binding upon, shall inure to the benefit
of, and shall be enforceable by the parties hereto and their respective successors and assigns and, with respect to any Securityholder, any of their Permitted Transferees. No assignment or transfer
shall be effective hereunder unless and until the purported transferee executes and delivers an agreement, in form and substance reasonably acceptable to Parent, agreeing to be bound by the terms
hereof; provided, that Parent may not assign its obligations hereunder (other than by operation of law or in connection with an action under
Section 5.01). 

        Section 5.04.    Amendments and Waivers.    Except as otherwise provided herein, the provisions of this
agreement may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless consented to in writing by Parent and Securityholders
of at least 50% of the Registrable Securities held by all holders of Registrable Securities outstanding as of such date. 

        Section 5.05.    Nominees for Beneficial Owners.    If any Registrable Securities are held by a nominee for the
beneficial owner thereof, the beneficial owner thereof may, at its election in writing delivered to Parent, be treated as the Securityholder for purposes of any request, consent, waiver or other
action by any Securityholder or Securityholders pursuant to this agreement or any determination of any number or percentage of Registrable Securities held by any Securityholder or Securityholders 

8

 

contemplated
by this agreement. If the beneficial owner of any Registrable Securities makes the election provided in this Section 5.05, Parent may require assurances reasonably satisfactory to
it of such owner's beneficial ownership of such Registrable Securities. 

 
 

Plan of Distribution    
    

        The selling securityholders, including their pledgees, donees, transferees or other successors in interest who may later hold interests in the securities covered
by this prospectus and who are otherwise entitled to resell the securities using this prospectus, may sell the securities covered by this prospectus from time to time in any legal manner selected by
the selling securityholders, including directly to purchasers or through broker-dealers or agents, who may receive compensation in the form of fees or commissions from the selling securityholders or
the purchasers. These fees or commissions as to any particular broker-dealer or agent may be in excess of those customary in the types of transactions involved. Except with respect to sales to satisfy
withholding obligations, the selling securityholders will act independently of us in making decisions with respect to the timing, manner and size of each sale of the securities covered by this
prospectus. 

        The
selling securityholders have advised us that the securities may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of sale, at prices
related to the prevailing market prices, at varying prices determined at the time of sale and/or at negotiated prices. These sales may be effected in one or more transactions, including: 

	•
	on
the Nasdaq National Market;

	•
	in
the over-the-counter market;

	•
	in
transactions otherwise than on the Nasdaq National Market or in the over-the-counter market; or

	•
	any
combination of the foregoing. 

        In
order to satisfy certain federal, state, local or foreign withholding tax obligations arising as a result of the issuance of certain securities offered pursuant to this prospectus,
certain of the selling securityholders may be required to sell through a broker-dealer approved by us a sufficient number of securities offered by this prospectus to satisfy such withholding tax
obligations, and to deliver to us the proceeds from such sale. We will use such proceeds to satisfy the applicable withholding obligations. All commissions, transfer taxes and other
out-of-pocket transactions costs, if any, including the expenses and compensation of the broker-dealer, incurred in connection with such sale of securities will be paid by such
selling securityholders. 

        Except
as otherwise provided herein, the selling securityholders have advised us that they have not entered into any agreements, arrangements or understandings with any broker-dealer or
agent regarding the sale of the securities covered by this prospectus. For more information regarding the registration rights provisions, see "Selling Securityholders—Registration Rights
Provisions." The selling securityholders may sell any or all of the securities offered by them pursuant to this prospectus. In addition, there can be no assurance that the selling securityholders will
not transfer, devise or gift the securities by other means not described in this prospectus. 

        There
can be no assurance that the selling securityholders will sell any or all of their securities pursuant to this prospectus. In addition, any securities covered by this prospectus
that qualify for sale pursuant to Rule 144 or Section 4(1) of the Securities Act may be sold under Rule 144 or Section 4(1) rather than pursuant to this prospectus. 

        The
aggregate proceeds to a selling securityholder from the sale of securities offered by it will be the purchase price of such securities less fees or commissions, if any. If a selling
securityholder's securities are sold through a broker or agent, such selling securityholder will be responsible for any 

9

 

broker
or agent fees or commissions. Except as otherwise provided herein, we will not receive any of the proceeds from the sale of the securities covered by this prospectus. 

        In
order to comply with the securities laws of some states, if applicable, the securities may be sold in these jurisdictions only through registered or licensed brokers or dealers. In
addition, in some states the securities may not be sold unless they have been registered or qualified for sale or any exemption from registration or qualification requirements is available and is
complied with. 

        To
the extent required, the securities to be sold, the names of the selling securityholders, the respective purchase prices and public offering prices, the names of any agent or dealer,
and any applicable fees or commissions with respect to a particular offer will be set forth in an accompanying prospectus supplement or, if appropriate, a post-effective amendment to the
registration statement of which this prospectus is a part. 

        We
have agreed to indemnify the selling securityholders and their respective directors, officers and controlling persons, if any, against certain liabilities, including specified
liabilities under the Securities Act, or to contribute with respect to payments which any selling securityholder may be required to make in respect of such liabilities. Each selling securityholder has
agreed to indemnify us for liabilities arising under the Securities Act with respect to written information furnished to us by it or to contribute with respect to payments in connection with such
liabilities. 

        We
have agreed to pay all of the costs, fees and expenses incident to our registration of the resale of the selling securityholders' securities, excluding any legal fees of the selling
securityholders, and fees or commissions of broker-dealers and agents. 

        Under
our registration rights agreement with the selling securityholders, we will use our commercially reasonable efforts to keep the registration statement of which this prospectus is a
part continuously effective, subject to customary suspension periods, as to a particular security covered thereby until no later than the first anniversary of the issuance of such security by Parent. 

        Our
obligation to keep the registration statement to which this prospectus relates effective is subject to specified exceptions. In these cases, we may suspend offers and sales of the
securities pursuant to the registration statement to which this prospectus relates. 

10

QuickLinks

REGISTRATION RIGHTS PROVISIONS

Plan of Distribution

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