Document:

Exhibit
10.10

 

AIRTRAN
CORPORATION

 

STOCK PURCHASE AGREEMENT

 

 

Dated as of

 

October 18, 1993

 

 

TABLE OF CONTENTS

 

	
  1. Sale and Purchase of
  Securities

  	
   

  
	
  2. Closing

  	
   

  
	
  3. Restriction on Transfer of
  the Securities

  	
   

  
	
  4. Registration of the Stock

  	
   

  
	
  4.1 Required Registration

  	
   

  
	
  4.2 Incidental Registration

  	
   

  
	
  4.3 Registration Procedures

  	
   

  
	
  4.4
  Expenses

  	
   

  
	
  4.5 Indemnification

  	
   

  
	
  5. Representations and
  Warranties by Company

  	
   

  
	
  5.1 Organization, Standing,
  etc.

  	
   

  
	
  5.2 Financial Statements

  	
   

  
	
  5.3 Tax Returns and Audits

  	
   

  
	
  5.4 Changes, Dividends, etc.

  	
   

  
	
  5.5 Title to Properties
  and Encumbrances

  	
   

  
	
  5.6 Litigation;
  Governmental Proceedings

  	
   

  
	
  5.7 Compliance with
  Applicable Laws and Other Instruments

  	
   

  
	
  5.8 Securities Laws

  	
   

  
	
  5.9 Air Carrier Certification

  	
   

  
	
  5.10 Capital Stock

  	
   

  
	
  5.11 Airline Services
  Agreement

  	
   

  
	
  5.12 Corporate Acts and
  Proceedings

  	
   

  
	
  5.13 No Brokers or Finders

  	
   

  
	
  5.14
  Licenses

  	
   

  
	
  5.15 Registration Rights

  	
   

  
	
  5.16 Retirement Plans

  	
   

  
	
  6.
  Representations and Warranties of Purchasers

  	
   

  
	
  6.1 Investment Intent

  	
   

  
	
  6.2 Location of
  Principal Office and Qualification as Accredited Investor

  	
   

  
	
  6.3 Acts and Proceedings

  	
   

  
	
  6.4 No Brokers or Finders

  	
   

  

 

i

 

	
  6.5 Purchaser Certification

  	
   

  
	
  7. Conditions of Each
  Purchaser’s Obligation

  	
   

  
	
  7.1 Compliance with Agreement

  	
   

  
	
  7.2 Opinion of Company’s
  Counsel

  	
   

  
	
  7.3 Proceedings and Documents

  	
   

  
	
  7.4 Purchaser Conditions
  Precedent

  	
   

  
	
  8. Consents; Waivers
  and Amendments

  	
   

  
	
  9. Changes, Waivers, etc

  	
   

  
	
  10. Payment of Fees and
  Expenses of Purchasers

  	
   

  
	
  11. Understanding Among
  Purchasers

  	
   

  
	
  12. Sale of Purchased Stock
  by Purchasers

  	
   

  
	
  13. Notices

  	
   

  
	
  14. Survival of
  Representations and Warranties, etc

  	
   

  
	
  15. Parties in Interest

  	
   

  
	
  16. Headings

  	
   

  
	
  17. Choice of Law

  	
   

  
	
  18. Counterparts

  	
   

  
	
  19. Additional Company
  Conditions Precedent

  	
   

  
	
  19.1 Valuation Opinion

  	
   

  
	
  19.2 Regulatory and
  Contractual Matters

  	
   

  
	
  19.3 Final Agreement

  	
   

  

 

ii

 

AIRTRAN
CORPORATION

 

STOCK PURCHASE
AGREEMENT

 

Dated as of

October 18, 1993

 

To Each of the
Persons Named in

  Schedule A to this Agreement

  (the “Purchasers”)

 

Gentlemen:

 

In
consideration of the agreement of the Purchasers to purchase the Common Stock,
$.01 par value, of AirTran Corporation, a Minnesota corporation (the “Company”),
as provided for herein, the Company hereby agrees with each of the Purchasers
as follows:

 

1.                                       Sale and Purchase of Securities.  Subject to the terms and conditions hereof,
the Company agrees to issue and sell to each Purchaser, and each Purchaser
agrees to purchase from the Company, the number of shares of the Company’s
Common Stock set forth opposite such Purchaser’s name in Schedule A hereto (the
“Stock”), at the purchase price set forth opposite such Purchaser’s name in
Schedule A hereto.

 

2.                                       Closing. 
The closing of the sale to, and purchase by, the Purchasers of the Stock
(the “Closing”) shall occur at the offices of Briggs and Morgan, Professional
Association, 2400 IDS Center, 80 South Eighth Street, Minneapolis, Minnesota,
at the hour of 10 A.M., Minneapolis time, on October 19, 1993 or on such other
day or at such other time or place as the Purchasers and the Company shall
agree upon (the “Closing Date”).

 

At the
Closing, the Company will deliver to the Purchasers certificates representing
the Stock being purchased by the Purchasers, registered in their respective
names as stated in Schedule A hereto, against delivery to the Company of their
certified or bank cashier checks in the amounts set forth after their
respective names in Schedule A hereto, in payment of the total purchase price
of the Stock being purchased by the Purchasers.

 

3.                                       Restriction on Transfer of
the Securities.  The Stock delivered
at the Closing will not be registered under the Securities Act of 1933, as
amended (the “Securities Act”), and will be transferable by the Purchasers only
pursuant to (a) a public offering registered under the Securities Act, or (b)
Rule 144 (or any similar rule then in effect) adopted under the Securities Act,
if such rule is available, or (c) another legally available exemption from
registration.  The certificate or
certificates representing the Stock shall be endorsed with substantially the
following legend:

 

“The securities evidenced hereby may not be
transferred without (i) an opinion of counsel satisfactory to AirTran
Corporation that such transfer may be lawfully made without registration under
the Securities Act of 1933 and all applicable state securities laws or (ii)
such registration.”

 

 

4.                                       Registration of the Stock.

 

4.1                                 Required Registration.  Anytime after March 31, 1995, if the Company
shall receive a written request therefor from any record holder or holders of
an aggregate of at least a majority of the shares of the Stock not theretofore
registered under the Securities Act and sold, the Company shall prepare and
file one registration statement under the Securities Act covering the Stock
which are the subject of such request and shall use its best efforts to cause
such registration statement to become effective.  In addition, upon the receipt of such
request, the Company shall promptly give written notice to all other record
holders of the Stock not theretofore registered under the Securities Act and
sold that such registration is to be effected. 
The Company shall include in such registration statement such shares of
the Stock for which it has received written requests to register by such other
record holders within 30 days after the delivery of the Company’s written
notice to such other record holders.  The
Company shall be obligated to prepare, file and cause to become effective only
one registration statement pursuant to this Paragraph 4.1, and to pay the
expenses associated with such registration statement.  In the event that the holders of a majority
of the Stock for which registration has been requested pursuant to this
Paragraph 4.1 determine for any reason not to proceed with a registration at
any time before a registration statement has been declared effective by the
Commission, and such registration statement, if theretofore filed with the
Commission, is withdrawn with respect to the shares of the Stock covered
thereby, and the holders of such Stock agree to bear their own expenses
incurred in connection therewith and to reimburse the Company for the expenses
incurred by it attributable to the registration of such Stock, the holders of
such shares of the Stock shall not be deemed to have exercised their right to
require the Company to register Stock pursuant to this Paragraph 4.1.

 

If,
during the period any written request for registration is pending by the
Company pursuant this Paragraph 4.1, the Company has determined to proceed with
the actual preparation and filing of a registration statement under the
Securities Act in connection with the proposed offer and sale for cash of any
of its securities by it or any of its security holders, such written request
shall be deemed to have been given pursuant to Paragraph 4.2 hereof rather than
this Paragraph 4.1, and the rights of the holders of Stock covered by such
written request shall be governed by Paragraph 4.2.

 

4.2                                 Incidental Registration.  Each time the Company shall determine to
proceed with the actual preparation and filing of a registration statement
under the Securities Act in connection with the proposed offer and sale for
cash of any of its Common Stock by it or any of its security holders (other
than a registration statement on a form that does not permit the inclusion of
shares by its security holders), the Company will give written notice of its
determination to all record holders of the Stock not theretofore registered
under the Securities Act and sold.  Upon
the written request of a

 

2

 

record holder or holders representing 10% or more of the shares of the
Stock given within 30 days after receipt of any such notice from the Company,
the Company will, except as herein provided, cause all such shares of the
Stock, the record holders of which have so requested registration thereof, to
be included in such registration statement, all to the extent necessary to
permit the sale or other disposition by the prospective seller or sellers of
the Stock to be so registered; provided, however, that nothing herein shall
prevent the Company from, at any time, abandoning or delaying any such
registration initiated by it; provided further, however, that if the Company
determines not to proceed with a registration after the registration statement
has been filed with the Commission and the Company’s decision not to proceed is
primarily based upon the anticipated public offering price of the Stock to be
sold by the Company, the Company shall promptly complete the registration for
the benefit of those selling security holders who wish to proceed with a public
offering of their Stock and who bear all expenses in excess of $25,000 incurred
by the Company in connection with such registration after the Company has
decided not to proceed.  If any
registration pursuant to this Paragraph 4.2 shall be underwritten in whole or
in part, the Company may require that the Stock requested for inclusion
pursuant to this Paragraph 4.2 be included in the underwriting on the same
terms and conditions as the securities otherwise being sold through the
underwriters.  In the event that the
Stock requested for inclusion pursuant to this Paragraph 4.2 would constitute
more than 25% of the total number of shares to be included in a proposed
underwritten public offering, and if in the good faith judgment of the managing
underwriter of such public offering the inclusion of all of the Stock
originally covered by a request for registration would reduce the number of
shares to be offered by the Company or interfere with the successful marketing
of the shares of stock offered by the Company, the number of shares of Stock
otherwise to be included in the underwritten public offering may be reduced pro
rata (by number of shares) among the holders thereof requesting such registration.  Those shares of Stock which are thus excluded
from the underwritten public offering shall be withheld from the market by the
holders thereof for a period, not to exceed 90 days, which the managing
underwriter reasonably determines is necessary in order to effect the
underwritten public offering.

 

4.3                                 Registration Procedures.  If and whenever the Company is required by
the provisions of Section 4.1 or 4.2 hereof to effect the registration of
shares of the Stock under the Securities Act, the Company will:

 

a.                                       prepare
and file with the Commission a registration statement with respect to such
securities, and use its best efforts to cause such registration statement to
become and remain effective for such period as may be reasonably necessary to
effect the sale of such securities, not to exceed nine months;

 

3

 

b.                                      prepare
and file with the Commission such amendments to such registration statement and
supplements to the prospectus contained therein as may be necessary to keep
such registration statement effective for such period as may be reasonably
necessary to effect the sale of such securities, not to exceed nine months;

 

c.                                       furnish
to the security holders participating in such registration and to the underwriters
of the securities being registered such reasonable number of copies of the
registration statement, preliminary prospectus, final prospectus and such other
documents as such underwriters may reasonably request in order to facilitate
the public offering of such securities;

 

d.                                      use
its best efforts to register or qualify the securities covered by such
registration statement under such state securities or blue sky laws of such
jurisdictions as such participating holders may reasonably request in writing
within 20 days following the original filing of such registration statement,
except that the Company shall not for any purpose be required to execute a
general consent to service of process or to qualify to do business as a foreign
corporation in any jurisdiction wherein it is not so qualified;

 

e.                                       notify
the security holders participating in such registration, promptly after it
shall receive notice thereof, of the time when such registration statement has
become effective or a supplement to any prospectus forming a part of such
registration statement has been filed;

 

f.                                         notify
such holders promptly of any request by the Commission for the amending or
supplementing of such registration statement or prospectus or for additional
information;

 

g.                                      prepare
and file with the Commission, promptly upon the request of any such holders,
any amendments or supplements to such registration statement or prospectus
which, in the opinion of counsel for such holders (and concurred in by counsel
for the Company), is required under the Securities Act or the rules and
regulations thereunder in connection with the distribution of Stock by such
holder;

 

h.                                      prepare
and promptly file with the Commission and promptly notify such holders of the
filing of such amendment or supplement to such registration statement or
prospectus as may be necessary to correct any statements or omissions if, at
the time when a prospectus relating to such securities is required to be
delivered under the Securities Act, any event shall have occurred as the result
of which any such prospectus or any other prospectus as then in effect would
include an untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein, in the light of the
circumstances in which they were made, not misleading; and

 

4

 

i.                                          advise
such holders, promptly after it shall receive notice or obtain knowledge
thereof, of the issuance of any stop order by the Commission suspending the
effectiveness of such registration statement or the initiation or threatening
of any proceeding for that purpose and promptly use its best efforts to prevent
the issuance of any stop order or to obtain its withdrawal if such stop order
should be issued.

 

4.4                                 Expenses. 
With respect to each registration requested pursuant to Section 4.1
hereof (except as otherwise provided in such Section with respect to
registrations voluntarily terminated at the request of the requesting security
holders) and with respect to each inclusion of shares of Stock in a
registration statement pursuant to Section 4.2 hereof (except as otherwise
provided in Section 4.2 with respect to registrations initiated by the Company
but with respect to which the Company has determined not to proceed), the
Company shall bear the following fees, costs and expenses: all registration,
filing and NASD fees, printing expenses, fees and disbursements of counsel and
accountants for the Company, fees and disbursements of counsel for the
underwriter or underwriters of such securities (if the Company and/or selling
security holders are required to bear such fees and disbursements), all
internal Company expenses, all legal fees and disbursements and other expenses
of complying with state securities or blue sky laws of any jurisdictions in
which the securities to be offered are to be registered or qualified, and the
premiums and other costs of policies of insurance (if any) against liability
arising out of such public offering.  Fees
and disbursements of counsel and accountants for the selling security holders,
underwriting discounts and commissions and transfer taxes relating to the
shares included in the offering by the selling security holders, and any other
expenses incurred by the selling security holders not expressly included above,
shall be borne by the selling security holders.

 

4.5                                 Indemnification.  In the event that any Stock is included in a
registration statement under Section 4.1 or 4.2 hereof:

 

a.                                       The
Company will indemnify and hold harmless each holder of shares of Stock which
are included in a registration statement pursuant to the provisions of this
Section 4, its directors and officers, and each person, if any, who controls
such holder within the meaning of the Securities Act, from and against, and will
reimburse such holder and controlling person with respect to, any and all loss,
damage, liability, cost and expense to which such holder or controlling person
may become subject under the Securities Act or otherwise, insofar as such
losses, damages, liabilities, costs or expenses are caused by any untrue
statement or alleged untrue statement of any material fact contained in such
registration statement, any prospectus contained therein or any amendment or
supplement thereto, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, in light of the

 

5

 

circumstances in which they were made, not misleading; provided,
however, that the Company will not be liable in any such case to the extent
that any such loss, damage, liability, cost or expense arises out of or is
based upon an untrue statement or alleged untrue statement or omission or
alleged omission so made in conformity with information furnished by such
holder, or such controlling person, in writing specifically for use in the
preparation thereof.

 

b.                                      Each
holder of shares of Stock which are included in a registration pursuant to the
provisions of this Section 4 will indemnity and hold harmless the Company, its
directors and officers, any controlling person from and against, and will
reimburse the Company, its directors and officers, any controlling person with
respect to, any and all loss, damage, liability, cost or expense to which the
Company or any controlling person may become subject under the Securities Act
or otherwise, insofar as such losses, damages, liabilities, costs or expenses
are caused by any untrue or alleged untrue statement of any material fact
contained in such registration statement, any prospectus contained therein or
any amendment or supplement thereto, or arise out of or are based upon the
omission or the alleged omission to state therein a material fact required to
be stated therein or necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was so made in reliance upon and in
strict conformity with written information furnished by such holder
specifically for use in the preparation thereof.

 

c.                                       Promptly
after receipt by an indemnified party pursuant to the provisions of paragraph (a)
or (b) of this Section 4.5 of notice of the commencement of any action
involving the subject matter of the foregoing indemnity provisions such
indemnified party will, if a claim thereof is to be made against the
indemnifying party pursuant to the provisions of said paragraph (a) or (b),
promptly notify the indemnifying party of the commencement thereof; but the
omission so to notify the indemnifying party will not relieve it from any
liability which it may have to any indemnified party otherwise than hereunder.  In case such action is brought against any
indemnified party and it notifies the indemnifying party of the commencement
thereof, the indemnifying party shall have the right to participate in, and, to
the extent that it may wish, jointly with any other indemnifying party
similarly notified, to assume the defense thereof, with counsel satisfactory to
such indemnified party, provided, however, if the defendants in any action
include both the indemnified party and the indemnifying party and the indemnified
party shall have reasonably concluded that there is a conflict of interest
which would prevent counsel for the indemnifying party from also representing
the indemnified party, the indemnified party or parties shall have the right to
select separate counsel to participate in the defense of such action on behalf
of such indemnified party or parties. 
After notice from the indemnifying party to

 

6

 

such indemnified party of its election so to assume the defense
thereof, the indemnifying party will not be liable to such indemnified party
pursuant to the provisions of said paragraph (a) or (b) for any legal or other
expense subsequently incurred by such indemnified party in connection with the
defense thereof other than reasonable costs of investigation, unless (i) the
indemnified party shall have employed counsel in accordance with the proviso of
the preceding sentence, (ii) the indemnifying party shall not have employed
counsel reasonably satisfactory to the indemnified party to represent the
indemnified party within a reasonable time after the notice of the commencement
of the action, or (iii) the indemnifying party has authorized the employment of
counsel for the indemnified party at the expense of the indemnifying party.

 

5.                                       
Representations and Warranties
by Company.  The Company
represents and warrants to the Purchasers that:

 

5.1                                 Organization, Standing, etc.  The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of Minnesota,
and has the requisite corporate power and authority to own its properties and
to carry on its business in all material respects as it is now being
conducted.  The Company has the requisite
corporate power and authority to issue the Stock, and to otherwise perform its
obligations under this Agreement.  The
copies of the Articles of Incorporation and Bylaws of the Company delivered to
the Purchasers or their agents prior to the execution of this Agreement are
true and complete copies of the duly and legally adopted Articles of
Incorporation and Bylaws of the Company in effect as of the date of this
Agreement.  The Company has one
subsidiary, Mesaba Aviation, Inc., a Minnesota corporation (“Mesaba”), which is
wholly owned by the Company.

 

5.2                                 Financial Statements.  Attached hereto as Exhibit 1 is an unaudited
consolidated balance sheet at September 30, 1993, together with the related
consolidated statements of operations, stockholders’ equity and cash flow for
the three months then ended, prepared by the Company.  The Company has furnished to the Purchasers a
copy of its Form 10-K Annual Report for the fiscal year ended March 31, 1993
and the Company’s Form 10-Q Quarterly Report for the three months ended June
30, 1993, both as filed with the Securities and Exchange Commission
(collectively the “Periodic Reports”). 
The financial statements contained in Exhibit 1 and in those Periodic
Reports (i) are in accordance with the books and records of the Company, (ii)
present fairly the financial condition of the Company at the balance sheet
dates and the results of its operations for the periods therein specified, and
(iii) have, in all material respects, been prepared in accordance with
generally accepted accounting principles applied on a basis consistent with
prior accounting periods.

 

5.3                                 Tax Returns and Audits.  All required federal, state and local tax
returns or appropriate extension requests of the Company have been filed, and,
to the knowledge of the Company, all federal, state and local taxes required to
be

 

7

 

paid with respect to such returns have been paid or due provision for
the payment thereof has been made.  The
Company is not delinquent in the payment of any such tax or in the payment of
any assessment or governmental charge. 
The Company has not received notice of any tax deficiency proposed or
assessed against it, and has not executed any waiver of any statute of
limitations on the assessment or collection of any tax.  To the knowledge of the Company, the Company
does not have any tax liabilities except those reflected in its Periodic
Reports hereto and those incurred in the ordinary course of business since June
30, 1993.

 

5.4                                 Changes, Dividends, etc.  Except for the transactions contemplated by
this Agreement, since September 30, 1993 the Company has not: (a) incurred any
debts, obligations or liabilities, absolute, accrued or contingent and whether
due or to become due, except current liabilities incurred in the ordinary
course of business, which (individually or in the aggregate) will not
materially and adversely affect the business, properties or prospects of the
Company; (b) paid any obligation or liability other than, or discharged or
satisfied any liens or encumbrances other than those securing, current
liabilities, in each case in the ordinary course of business; (c) except for a
quarterly dividend to shareholders, which is in the normal course of business,
declared or made any payment or distribution to its stockholders as such, or
purchased or redeemed any of its shares of capital stock or other securities,
or obligated itself to do so; (d) canceled or compromised any debt or claim, or
waived or released any right of material value; (e) suffered any physical
damage, destruction or loss (whether or not covered by insurance) materially
and adversely affecting the properties, business or prospects of the Company;
(f) entered into any transaction other than in the ordinary course of business;
(g) issued or sold any shares of capital stock or other securities or granted
any options, warrants or other purchase rights with respect thereto other than
as contemplated by this Agreement; or (h) made any acquisition or disposition
of any material assets or become involved in any other material transaction,
other than for fair value in the ordinary course of business.

 

5.5                                 Title to Properties and Encumbrances.  The Company has good and marketable title to
all its owned properties and assets, including without limitation the
properties and assets used in the conduct of its business, except for property
disposed of in the ordinary course of business since September 30, 1993, which
properties and assets are not subject to any mortgage, pledge, lease, lien,
charge, security interest, encumbrance or restriction, except (a) those
incurred in the ordinary course of business and (b) those which are shown and
described in the Periodic Reports, or in Exhibit 1 hereto, or the notes
thereto. The plant, offices and equipment owned and leased by the Company have
been kept in good condition and repair in the ordinary course of business,
ordinary wear and tear excepted.

 

8

 

5.6                                 Litigation; Governmental
Proceedings.  There are no
material legal actions, suits, arbitrations or other legal, administrative or
governmental proceedings or investigations pending or, to the knowledge of the
Company, threatened against the Company or Mesaba, its properties, assets or
business, and the Company is not aware of any facts which are likely to result
in or form the basis for any such action, suit or other proceeding.  Neither Mesaba nor the Company is known by
the Company to be in default with respect to any judgment, order or decree of
any court or any governmental agency or instrumentality.

 

5.7                                 Compliance with Applicable Laws
and Other Instruments.  To the
knowledge of the Company, the business and operations of the Company and Mesaba
have been and are being conducted in accordance with all applicable laws, rules
and regulations of all governmental authorities.  Neither the execution nor delivery of, nor
the performance of or compliance with, this Agreement nor the consummation of
the transactions contemplated hereby will, to the knowledge of the Company,
conflict with, or, with or without the giving of notice or passage of time,
result in any breach of, or constitute a default under, or result in the
imposition of any lien or encumbrance upon any asset or property of the Company
pursuant to, any applicable law, administrative regulation or judgment, order
or decree of any court or governmental body, any agreement or other instrument
to which the Company is a party or by which it or any of its properties, assets
or rights is bound or affected, and will not violate the Articles of
Incorporation or Bylaws of the Company.

 

5.8                                 Securities Laws.  Based in part upon the representations and
warranties contained in Section 6 hereof, and except as required by the Air
Carrier Fitness Rules adopted by the Department of Transportation, no consent,
authorization, approval, permit or order of or filing with any governmental or
regulatory authority is required under current laws and regulations in
connection with the execution and delivery of this Agreement or the offer,
issuance, sale or delivery of the Stock. Under the circumstances contemplated
hereby, the offer, issuance, sale and delivery of the Stock will not under
current laws and regulations require compliance with the prospectus delivery or
registration requirements of the Securities Act.

 

5.9                                 Air Carrier Certification.  Mesaba holds an Air Carrier Operating
Certificate issued by the Federal Aviation Administration, a Certificate of
Public Convenience and Necessity issued by the U.S. Department of
Transportation and all other operating and airworthiness certificates necessary
for its operation.

 

5.10                           Capital Stock.  The authorized capital stock of the Company
consists of 15,000,000 shares, of which 7,052,679 common shares are issued and
outstanding. All of the outstanding shares of capital stock of the Company were
duly authorized and validly issued and are fully paid and nonassessable.  There are no outstanding subscriptions,
options, warrants, calls, contracts, demands, commitments, convertible securities
or other

 

9

 

agreements or arrangements of any character or nature whatever, except
as otherwise disclosed in the Periodic Reports, in the Balance Sheet dated
September 30, 1993, or as contemplated by this Agreement, under which the
Company is or may be obligated to issue capital stock or other securities of
any kind representing an ownership interest or contingent ownership interest in
the Company.  Except with respect to the
Warrants held by Northwest Aircraft Inc., copies of which are attached hereto
as Exhibit 2, neither the offer nor the issuance or sale of the Stock,
constitutes an event, under any anti-dilution provisions of any
securities issued or issuable by the Company or any agreements with respect to
the issuance of securities by the Company, which will either increase the
number of shares issuable pursuant to such provisions or decrease the
consideration per share to be received by the Company pursuant to such
provisions.  No holder of any security of
the Company is entitled to any preemptive or similar rights to purchase
securities from the Company except as otherwise contemplated by this Agreement.

 

5.11                           Airline Services Agreement.  A copy of the Airline Services Agreement,
dated September 15, 1988, and all amendments thereto, between Mesaba and
Northwest Airlines, Inc., and all material correspondence (not including
billings, scheduling and other routine correspondence pertaining to operations)
between Mesaba and Northwest Airlines, Inc. covering the period of March 31,
1993 through September 30, 1993 in which the subject of the Airline Services
Agreement is mentioned, have previously been made available to the Purchasers
for their examination.  Mesaba has in all
material respects substantially performed all obligations required to be
performed by it under the Airline Services Agreement and is not in default in
any material respect thereunder.

 

5.12                           Corporate Acts and Proceedings.  This Agreement has been duly authorized by
all necessary corporate action on behalf of the Company, and has been duly
executed and delivered by authorized officers of the Company.  All corporate action necessary to the
authorization, creation, issuance and delivery of the Stock, has been taken on
the part of the Company, or will be taken by the Company on or prior to the
Closing Date.  This Agreement is a valid
and binding agreement of the Company enforceable in accordance with its terms,
except as the enforceability thereof may be limited by bankruptcy, insolvency,
moratorium, reorganization or other similar laws affecting the enforcement of
creditors’ rights generally, and except for judicial limitations on the
enforcement of the remedy of specific enforcement and other equitable remedies.

 

5.13                           No Brokers or Finders.  Except with respect to any “fairness opinion”
engagement, for which the Company is responsible to pay all fees and expenses,
no person, firm or corporation has or will have, as a result of any act or
omission of the Company, any right, interest or valid claim against or upon the
Company or any Purchaser for any commission, fee or other compensation as a
finder or broker, or in any similar capacity, in

 

10

 

connection with the transactions contemplated by this Agreement.  The Company will defend and indemnify and
hold each Purchaser harmless against any and all liability with respect to any
such commission, fee or other compensation which may be payable or determined
to be payable in connection with the transactions contemplated by this
Agreement.

 

5.14                           Licenses. 
To the knowledge of the Company, Mesaba possesses from the appropriate
agency, commission, board and government body and authority, whether state,
local or federal, all licenses, permits, authorizations, approvals, franchises
and rights which (a) are necessary for it to engage in the business currently
conducted by it, and (b) if not possessed by Mesaba would have an adverse
impact on Mesaba’s business.

 

5.15                           Registration Rights.  Other than under this Agreement and under the
Northwest Warrants, the Company has not agreed to register any of its
authorized or outstanding securities under the Securities Act.

 

5.16                           Retirement Plans.  The Company does not have any retirement plan
in which any employees of the Company participate that is subject to any
provisions of the Employee Retirement Income Security Act of 1974 and of the
regulations adopted pursuant thereto (“ERISA”), other than the Mesaba Aviation,
Inc. 401(K) Retirement Savings Plan.

 

6.                                       Representations and
Warranties of Purchasers. 
Each of the Purchasers severally represents and warrants for itself
that:

 

6.1                                 Investment Intent.  The Stock being acquired by such Purchaser
hereunder is being purchased for such Purchaser’s own account and not with the
view to, or for resale in connection with, any distribution or public offering
thereof within the meaning of the Securities Act.  Such Purchaser understands that the Stock has
not been registered under the Securities Act or any applicable state laws by reason
of its issuance or contemplated issuance in a transaction exempt from the
registration and prospectus delivery requirements of the Securities Act and
such laws, and that the reliance of the Company and others upon this exemption
is predicated in part upon this representation and warranty.  Such Purchaser further understands that the
Stock may not be transferred or resold without (a) registration under the
Securities Act and any applicable state securities laws, or (b) an exception
from the requirements of the Securities Act and applicable state securities
laws.

 

Such
Purchaser understands that an exemption from such registration is not presently
available pursuant to Rule 144 promulgated under the Securities Act by the
Securities and Exchange Commission and that in any event such Purchaser may not
sell any securities pursuant to Rule 144 prior to the expiration of a two-year
period after such Purchaser has acquired the securities.  Such Purchaser understands that any sales
pursuant to Rule 144 may only be made in full compliance with the provisions of
Rule 144.

 

11

 

6.2                                 Location of Principal Office and
Qualification as Accredited Investor.  The state in which such Purchaser’s principal
office (or domicile, if such Purchaser is an individual) is located is set
forth in such Purchaser’s address in Schedule A hereto.  Unless otherwise indicated on such Purchaser’s
Certification attached as Exhibit 3 to this Agreement, such Purchaser qualifies
as an accredited investor within the meaning of Rule 501 under the Securities
Act for the reasons specified on such Certification.  Such Purchaser has such knowledge and
experience in financial and business matters that such Purchaser is capable of
evaluating the merits and risks of the investment to be made hereunder by such
Purchaser.  Such Purchaser has and has
had access to all of the Company’s material books and records and access to the
Company’s executive officers has been provided to such Purchaser or to such
Purchaser’s qualified agents.

 

6.3                                 Acts and Proceedings.  This Agreement has been duly authorized by
all necessary action on the part of such Purchaser, has been duly executed and
delivered by such Purchaser, and is a valid and binding agreement upon the part
of such Purchaser.

 

6.4                                 No Brokers or Finders.  No person, firm or corporation has or will
have, as a result of any act or omission by such Purchaser, any right, interest
or valid claim against the Company for any commission, fee or other
compensation as a finder or broker, or in any similar capacity, in connection
with the transactions contemplated by this Agreement. Such Purchaser will
defend and indemnify and hold the Company harmless against any and all
liability with respect to any such commission, fee or other compensation which
may be payable or determined to be payable as a result of the actions of such
Purchaser in connection with the transactions contemplated by this Agreement.

 

6.5                                 Purchaser Certification.  Purchasers have furnished the information
contained in Exhibit 5 with the understanding that the Company may use the same
in filings with governmental authorities, including but not limited to, the
Department of Transportation.

 

7.                                       Conditions of Each Purchaser’s Obligation.  The obligation to purchase and pay for the
Stock which each Purchaser has agreed to purchase on the Closing Date is
subject to the fulfillment prior to or on the Closing Date of the following
conditions.  In the event that any such
condition is not satisfied to the satisfaction of each Purchaser, then no
Purchaser shall be obligated to proceed with the purchase of such Stock.

 

7.1                                 Compliance with Agreement.  The Company shall have performed and complied
with all agreements or conditions required by this Agreement to be performed
and complied with by it prior to or as of the Closing Date.

 

12

 

7.2                                 Opinion of Company’s Counsel.  The Company shall have delivered to each of
the Purchasers an opinion or opinions of Briggs and Morgan, Professional
Association, counsel for the Company, dated the Closing Date, to the effect
that:

 

a.                                       The
Company is a duly and validly organized and existing corporation in good
standing under the laws of the State of Minnesota and has the corporate power
and authority to enter into this Agreement, to issue and sell the Stock as
contemplated by this Agreement, and to carry out the provisions of this
Agreement.

 

b.                                      This
Agreement has been duly authorized, executed and delivered by the Company, and
is a legal, valid and binding agreement of the Company enforceable in
accordance with its terms, except as the enforceability thereof may be limited
by bankruptcy, insolvency, moratorium, reorganization or similar laws affecting
the enforcement of creditors’ rights generally, and except for judicial
limitations on the enforcement of the remedy of specific performance and other
equitable remedies.

 

c.                                       The
Stock has been duly authorized and when issued and paid for in accordance with
the terms of this Agreement, will be duly issued, fully paid and nonassessable.

 

d.                                      Assuming
the accuracy of the representations of the Purchasers set forth in Section 6
hereof, the offer, sale, issuance and delivery of the Stock to the Purchasers
under the circumstances contemplated by this Agreement are exempt from the
registration and prospectus delivery requirements of the Securities Act.

 

7.3                                 Proceedings and Documents.  All corporate and other proceedings and
actions taken in connection with the transactions contemplated hereby and all
certificates, opinions, agreements, instruments and documents mentioned herein
or incident to any such transaction shall be satisfactory in form and substance
to the Purchasers and their special counsel.

 

7.4                                 Purchaser Conditions Precedent.  The obligation of Purchasers to acquire the
Stock shall be contingent upon Carl R. Pohlad’s approval of the final form of
this Agreement.

 

8.                                       Consents; Waivers and Amendments.  Except as otherwise specifically provided
herein, in each case in which approval of the Purchasers is required by the
terms of this Agreement, such requirement shall be satisfied by a vote or the
written consent of Purchasers owning at least a majority of the purchased Stock
then owned by the Purchasers.  With the
written consent of Purchasers owning at least a majority of the purchased Stock
then owned by the Purchasers, the obligations of the Company under this
Agreement may be waived (either generally or in a particular instance and
either retroactively or prospectively), and with the same approval the Company
may enter into a supplementary agreement for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement

 

13

 

or of any supplemental
agreement or modifying in any manner the rights and obligations of the holders
of the purchased Stock and of the Company. 
Written notice of any such waiver, consent or agreement of amendment,
modification or supplement shall be given to the record holders of the
purchased Stock who have not previously consented thereto in writing.

 

9.                                       Changes, Waivers, etc.  Neither this Agreement nor any provision
hereof may be changed, waived, discharged or terminated orally, but only by a
statement in writing signed by the party against which enforcement of the change,
waiver, discharge or termination is sought, except to the extent provided in
Section 8 hereof.

 

10.                                 Payment of Fees and Expenses of
Purchasers.  The Purchasers shall be
responsible for and pay all of their expenses in connection with the
transactions contemplated by this Agreement.

 

11.                                 Understanding Among Purchasers.  The determination by each of the Purchasers
to purchase Stock pursuant to this Agreement has been made by such Purchaser
independent of the other Purchasers, and independent of any statements or
opinions as to the advisability of such purchase or as to the properties,
business, prospects or condition (financial or otherwise) of the Company which
may have been made or given by the other Purchasers or by any agent or employee
of the other Purchasers.  In addition, it
is acknowledged by each of the Purchasers that the other Purchasers have not
acted as such Purchaser’s agent in connection with making its investment
hereunder and that the other Purchasers will not be acting as such Purchaser’s
agent in connection with monitoring such Purchaser’s investment hereunder.

 

12.                                 Sale of Purchased Stock by Purchasers.  Beginning December 1, 1993, each of the
Purchasers shall, at least ten business days prior to any sale or other
transfer for value of Stock owned by it, discuss with the Company the
possibility of the Company purchasing such Stock.  This provision shall not, however, be
interpreted to require such Purchasers to accept any offer by the Company to purchase
such Stock, or to refrain for any period beyond such ten business days from
selling or transferring such Stock to a third party.

 

13.                                 Notices. 
All notices, requests, consents and other communications required or
permitted hereunder shall be in writing and shall be delivered, or mailed first-class
postage prepaid, registered or certified mail,

 

a.                                       if
to any holder of any Stock, addressed to such holder at its address as shown on
the books of the Company, or at such other address as such holder may specify
by written notice to the Company, or

 

b.                                      if
to the Company, addressed to the Company, 7501 26th Avenue South, Minneapolis,
Minnesota 55450, attention President, or to such other address as the Company
may specify by written notice to the Purchasers,

 

and such notices
and other communications shall for all purposes of this Agreement be treated as
being effective or having been given if delivered personally, or, if sent by
mail, when received.

 

14.                                 Survival of Representations and Warranties,
etc.  All representations and
warranties contained herein shall survive the execution and delivery of this
Agreement, any investigation at any time made by the Purchasers or on their
behalf, and the sale and purchase of

 

14

 

the Stock and payment
therefor, but shall terminate on the fifth anniversary of the date of this
Agreement.  All statements contained in
any certificate, instrument or other writing delivered by or on behalf of the
Company pursuant hereto or in connection with or contemplation of the transactions
herein contemplated (other than legal opinions) shall constitute
representations and warranties by the Company hereunder.

 

15.                                 Parties in Interest.  All the terms and provisions of this
Agreement shall be binding upon and inure to the benefit of and be enforceable
by the respective successors and assigns of the parties hereto, whether so
expressed or not, and, in particular, shall inure to the benefit of and be
enforceable by the holder or holders at the time of any of the Stock.

 

16.                                 Headings. 
The headings of the Sections and paragraphs of this Agreement have been
inserted for convenience of reference only and do not constitute a part of this
Agreement.

 

17.                                 Choice of Law.  It is the intention of the parties that the
laws of Minnesota shall govern the validity of this Agreement, the construction
of its terms and the interpretation of the rights and duties of the parties.

 

18.                                 Counterparts.  This Agreement may be executed concurrently
in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument.

 

19.                                 Additional Company Conditions Precedent.  The Company’s obligation to issue and sell
the Stock shall be contingent upon:

 

19.1                           Valuation Opinion.  Receipt by the Company, prior to closing, of
an opinion of an investment banking firm selected by the Company, obtained at
the Company’s expense, to the effect that the purchase price of the Stock, i.e., $7.25 per share, is equivalent to at
least the fair market value thereof, considering the private placement nature
of the transaction, the number of shares purchased, the market price of the
Company Common Stock as of September 28, 1993, the current valuation of other
regional airlines’ equity securities, and other matters deemed relevant by
them.

 

19.2                           Regulatory and Contractual
Matters.  Receipt by the Company
of an opinion or opinions of counsel to the effect that the sale of the Stock
to the Purchasers is not “a prohibited act” as that term is used in 49 U.S.C. §
1378, that any necessary approval or consent of the Department of
Transportation and other state and federal regulatory bodies, or any other
party, has been obtained, and that the sale of the Stock does not cause the
Company to be in default of any material agreement to which it is a party.

 

19.3                           Final Agreement.  Approval by the Company’s board of directors
of this Agreement, including the Company’s approval of the identity of each
Purchaser, or any person who has an interest, directly or indirectly, in a
Purchaser.

 

15

 

If you
are in agreement with the foregoing, please sign the form of acceptance on the
enclosed counterpart of this letter and return the same to the undersigned,
whereupon this letter shall become a binding contract among you and the
undersigned.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  AIRTRAN
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Robert D. Swenson

  	
   

  
	
   

  	
   

  	
  Robert D.
  Swenson

  
	
   

  	
   

  	
  Its President
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  The foregoing
  Agreement is

  	
   

  
	
  hereby accepted
  as of the

  	
   

  
	
  date first above
  written.

  	
   

  
	
  /s/ Carl R. Pohlad

  	
   

  	
   

  
	
  Carl R. Pohlad

  	
   

  
						

 

16Exhibit 10.25

 

[CONFIDENTIAL TREATMENT REQUESTED.  CONFIDENTIAL PORTIONS OF

THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY

FILED WITH THE COMMISSION]

 

AMENDMENT

TO

AIRLINE SERVICES AGREEMENT

 

AMENDMENT TO AIRLINE SERVICES AGREEMENT (this “Amendment”) dated as of April 15,
2005 by and among MAIR Holdings, Inc., a Minnesota corporation (“MAIR”), Mesaba
Aviation, Inc., a Minnesota corporation (“Mesaba”), and Northwest Airlines,
Inc., a Minnesota corporation (“Northwest”).

 

WITNESSETH:

 

WHEREAS, Mesaba, MAIR and Northwest have entered into the Airline
Services Agreement dated as of the 1st day of July, 1997 (as amended to date,
the “Agreement”); and

 

WHEREAS, Mesaba, MAIR and Northwest desire to amend the Agreement with
respect to on-time incentives, decommissioned aircraft and audit timing and requests.

 

NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, MAIR, Mesaba and Northwest do hereby agree as follows:

 

1.                                       Amendment
to Section 2.10(b).  Section 2.10(b)
of the Agreement is amended effective retroactively as of July 1, 2003 to
read in its entirety as follows:

 

“(b)                           Minimum
On-Time Reliability.  Mesaba shall
achieve a *** percent (***%) on-time arrival factor (“On-Time Factor”) for all
Scheduled Flights operated by Mesaba during each Performance Period.  An arrival will be considered on-time if it
arrives not later than *** after its published, scheduled arrival time.  All Scheduled Flights that arrive *** later
than their published, scheduled arrival time will not be considered on-time,
regardless of the reason for the delay. 
All Scheduled Flights will be included in this calculation, except for
those Schedule Flights operated on days when Northwest and Mesaba mutually
agree that Mesaba’s on-time performance was significantly degraded by Northwest’s
implementation of an Irregular Operating Procedures Program.  Upon mutual agreement between Northwest’s
Vice President of System Operations Control and Mesaba, all Scheduled Flights
operated on days with such extraordinary events will be excluded from the
calculation of Mesaba’s On-Time Factor. 
If Northwest and Mesaba are unable to reach agreement on the exclusion
of certain days, then all Scheduled Flights operated on such days will be
included in the calculation of Mesaba’s On-Time Factor.”

 

2.                                       Amendment
to Section 5.05(b).  Section 5.05(b)
of the Agreement is amended effective retroactively as of July 1, 2003 to
read in its entirety as follows:

 

“(b)                           On-Time
Factor.  If Mesaba’s On-Time Factor
(calculated in accordance with Section 2.10(b)) is less than ***% for a
Performance Period, Northwest shall receive from Mesaba $*** per enplaned
revenue passenger during the applicable Performance Period.  If

 

 

Mesaba’s On-Time Factor is equal to or
greater than ***% for a Performance Period, Northwest shall pay to Mesaba $***
per enplaned revenue passenger during the applicable Performance Period, and if
Mesaba’s On-Time Factor is greater than ***% for such Performance Period,
Northwest shall also pay to Mesaba an additional $*** per enplaned revenue
passenger during such Performance Period. 
The parties acknowledge and agree that the foregoing performance levels
are based on Northwest’s internal on-time goal of ***%.  In the event Northwest’s on-time goal changes
from ***%, the on-time performance levels that determine minimum reliability
(in Section 2.10(b)), and penalty and bonus levels (in this Section 5.05(b))
will be modified to correspond to the change made by Northwest.  Northwest and Mesaba will meet and confer on
all components of on-time metrics on an as-needed basis.”

 

3.                                       Amendment
to Section 7.04.  Section 7.04
of the Agreement is amended effective retroactively as of January 1, 2005 by
adding the following sentence to the end of the section:

 

“If any Aircraft covered hereby is to be permanently decommissioned, sold
to a third party, returned to a lessor or delivered to a subsequent lessor,
prior to surrendering possession of the Aircraft, Mesaba shall first have
painted over the areas of the outside of the Aircraft that would indicate
affiliation with Northwest, which shall include the entire vertical stabilizer
of the Aircraft and any areas of the wings or fuselage that would have any
Northwest Identification, trade names, service marks, and/or trademarks, such
as “NWA”, “Northwest Airlines”, “Northwest Airlink”, etc.”

 

4.                                       Amendment
to Section 6.02.  As a
corporation subject to the Sarbanes-Oxley Act of 2002, MAIR and its
subsidiaries are required to implement and maintain a system of internal
control over financial reporting (“ICFR”), which will be audited by MAIR’s
independent registered public accounting firm. 
As part of its ICFR program, MAIR and its subsidiaries are testing and
refining a variety of financial controls intended to prevent or detect, on a
timely basis, the occurrence of material misstatements of its financial
statements.  In order to allow MAIR to
report revenues and expenses with respect to the Agreement on a timely basis, Section 6.02
of the Agreement shall be amended effective March 1, 2005 by the replacement
of Section 6.02 (a) with the following:

 

“(a)                            Compliance
Audits.  Upon the reasonable prior
written request by Northwest, Mesaba shall make its books and records with
respect to this Agreement for the preceding twelve (12) months available for audit.  Northwest shall also be entitled to make
copies and notes of such information as it deems necessary and to discuss such
records and the finances and accounts of Mesaba with its Chief Financial
Officer or other employee or agent of Mesaba knowledgeable about such
records.  Northwest shall give not less
than fifteen (15) days written notice to Mesaba of its intention to audit
Mesaba’s books and records, including a request list of the books and records
that are to be made available.  Northwest
shall have ninety (90) days to complete the audit of such books and
records.  If the audit has not been
completed within the time period described above, Northwest forever waives its audit
rights for the relevant period.  Northwest
and Mesaba agree that all payments or reimbursements from one party to the
other resulting from any audit conducted under this Agreement shall relate only
to services, goods or payments to be performed, provided, or made during the period
under audit.  For the avoidance of doubt
and notwithstanding the foregoing, nothing in this Section 6.02 shall
preclude Northwest from bringing a breach of contract claim against Mesaba with
respect to matters discovered in an audit

 

2

 

or otherwise (even if such matter(s) relates
to a period previously audited or no longer subject to audit).”

 

5.                                       Miscellaneous.  All capitalized terms used herein and not
otherwise defined shall have the respective meanings provided such terms in the
Agreement.  This Amendment may be
executed in any number of counterparts and by the different parties hereto on
separate counterparts, each of which counterpart when executed and delivered
shall be original, and all of which shall together constitute one and the same
instrument.  This Amendment and the
rights and obligations of the parties hereunder shall be construed in
accordance with and governed by the law of the State of Minnesota.  From and after the date hereof, all
references in the Agreement to the Agreement shall be deemed to be references
to the Agreement as amended hereby.

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the date and year first set forth above.

 

	
   

  	
  MAIR HOLDINGS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Paul F. Foley

  	
   

  
	
   

  	
   

  	
  Paul F.
  Foley

  
	
   

  	
   

  	
  President
  and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MESABA
  AVIATION, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  John G. Spanjers

  	
   

  
	
   

  	
   

  	
  John G.
  Spanjers

  
	
   

  	
   

  	
  President
  and Chief Operating Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NORTHWEST
  AIRLINES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  J. Timothy Griffin

  	
   

  
	
   

  	
   

  	
  J. Timothy
  Griffin

  
	
   

  	
   

  	
  Executive
  Vice President,

  Marketing

  

 

3

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