Document:

Exhibit 10.1

 

Confidential treatment has
been requested for portions of this document. 
This copy of the document filed as an Exhibit omits the
confidential information subject to the confidentiality request.  Omissions are designated by the symbol
[...***...].  A complete version of this
document has been filed separately with the Securities and Exchange Commission.

 

AMENDMENT NO. 3 TO AIR TRANSPORTATION CHARTER AGREEMENT

 

This Amendment
No. 3 to Air Transportation Charter Agreement (“Amendment”)
is made as of the 26th day of April, 2010, by and between Allegiant Air, LLC, a Nevada limited
liability company with principal offices at 8360 South Durango Drive, Las
Vegas, Nevada 89113 (“Allegiant”), and Harrah’s
Operating Company, Inc., a Delaware corporation with principal
offices at One Harrah’s Court, Las Vegas, Nevada 89119 (“Charterer”) (Allegiant
and Charterer shall each also be referred to as a “Party” or collectively as
the “Parties”).

 

WHEREAS, Allegiant and Charterer are
parties to that certain Air Transportation Charter Agreement executed on October 31,
2008, as amended by Amendments No. 1 and 2 thereto (collectively, the “Agreement”),
and

 

WHEREAS, Allegiant and Charterer
have agreed that it is in the interest of both Parties to further amend the
Agreement, and

 

WHEREAS, Allegiant and Charterer
have agreed to amend the Agreement pursuant to Section 28.7 thereof;

 

THEREFORE, in consideration of the
promises, covenants, and provisions below and the recitals above, Allegiant and
Charterer hereby amend the Agreement as follows:

 

1.             Pursuant to
Paragraph 5 of Amendment No. 2, Allegiant agreed to provide supplementary
service to and from Tunica, Mississippi (UTA) using certain aircraft based in
Florida (collectively, the “Florida Aircraft”), and Charterer agreed to provide
a Minimum Block Hour Guarantee during each calendar quarter of 2010 with
respect to the Florida Aircraft. 
Effective July 1, 2010, Allegiant will no longer provide
supplementary service to or from UTA using the Florida Aircraft (or any other
aircraft), and Charterer will neither utilize the Florida Aircraft nor provide
a Minimum Block Hour Guarantee in regard to the Florida Aircraft.

 

2.             For the period April 01
through June 30, 2010, the Minimum Block Hour Guarantee applicable to the
Florida Aircraft is [...***...].

 

3.             For the avoidance
of doubt, the Minimum Block Hour Guarantee applicable to the MD-87 aircraft
based at UTA (the “UTA Aircraft”) shall continue to apply as set forth in the
Agreement, as shall Allegiant’s obligation to operate the UTA Aircraft on
charter to Charterer.

 

4.             Except as set forth
in this Amendment, the terms and conditions of the Agreement shall remain in
full force and effect at all times. 
Capitalized terms that appear in this Amendment and that are defined in
the Agreement have the same meaning in both documents.

 

IN WITNESS WHEREOF, the Parties have executed
this Amendment No. 3 to Air
Transportation Charter Agreement as of the day and year first written above.

 

	
  ALLEGIANT AIR, LLC

  	
  HARRAH’S OPERATING COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:Exhibit 10.2

 

Confidential treatment has
been requested for portions of this document. 
This copy of the document filed as an Exhibit omits the
confidential information subject to the confidentiality request.  Omissions are designated by the symbol
[...***...].  A complete version of this
document has been filed separately with the Securities and Exchange Commission.

 

AMENDMENT TO AGREEMENT

DATED OCTOBER 15, 2009

 

This
Amendment to Agreement (the “Amendment”) dated as of June 1, 2010 to the
Agreement dated October 15, 2009 (the “Agreement”), by and among Parball
Corporation dba Bally’s Las Vegas, a Nevada corporation having its principal
place of business located at 3465 Las Vegas Boulevard South, Las Vegas, Nevada
89109; Paris Las Vegas Operating Company, LLC dba Paris Las Vegas, a Nevada
corporation having its principal place of business located at 3655 Las Vegas
Boulevard South, Las Vegas, Nevada 89109; Flamingo Las Vegas Operating Company,
LLC dba Flamingo Las Vegas, a Nevada corporation having its principal place of
business located at 3555 Las Vegas Boulevard South, Las Vegas, Nevada 89109;
Rio Properties, Inc. dba Rio All-Suite Hotel and Casino, a Nevada
corporation having its principal place of business located at 3700 W. Flamingo
Road, Las Vegas, Nevada 89103; Harrah’s Las Vegas, Inc. dba Harrah’s Las
Vegas, a Nevada corporation having its principal place of business located at
3475 Las Vegas Boulevard South, Las Vegas, Nevada 89109; Desert Palace, Inc.
dba Caesars Palace, a Nevada corporation having its principal place of business
located at 3570 Las Vegas Boulevard South, Las Vegas, Nevada 89109, Harrah’s
Imperial Palace Corp. dba Imperial Palace a Nevada corporation having its
principal place of business located at 3535 Las Vegas Boulevard South, Las Vegas,
Nevada 89109, and Corner Investment Company, LLC dba Bill’s Gamblin’ Hall &
Saloon having its principal place of business located at 3595 Las Vegas
Boulevard South Las Vegas, Nevada 89109 (all
such entities being hereinafter collectively referred to as “Harrah’s”) on the
one hand; and ALLEGIANT AIR, LLC., a Nevada limited liability company,
(hereinafter referred to as “Supplier”) on the other hand, having its principal
place of business at 8360 S. Durango Drive, Las Vegas, NV 89113.

 

WHEREAS,
the Parties hereto are parties to that certain Agreement dated as of October 15,
2009 (the “Initial Agreement”); and

 

WHEREAS,
the Parties desire to extend the Term of the Agreement and make certain other
changes to the Agreement as herein described

 

NOW,
THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, the parties agree as follows:

 

1.             The following language shall be
added to Section 1.1 of the Agreement: Notwithstanding the foregoing, the
Parties agree that the Term of the Agreement was extended on March 21,
2010 by Supplier’s payment to Harrah’s on April 19, 2010 the additional
sum of Two Million Dollars ($2,000,000.00) (the “Bridge Payment”) and that said
payment shall be added to and included within the definition of the term “Lump
Sum” as such term is defined in the Agreement, with said Lump Sum payment
consisting of the total sum of Twelve Million Dollars ($12,000,000.00).
Supplier shall be entitled to extend the Term (the “Extension Term”) by making
payment to Harrah’s in an amount of Twenty-five Million Dollars ($25,000,000)
(the “Additional Payment”) on or before the utilization of the Bridge Payment,
which Additional Payment shall be added to and included within that which is
defined as the “Lump Sum”. The Extension Term shall end upon the earlier of a)
thirty (30) months following payment of the Additional Payment by Supplier to
Harrah’s; or b) the utilization of the Lump Sum. The Effective Date of the
Extension Term shall be the date upon which Supplier tenders payment of the
Additional Payment to Harrah’s.

 

2.             Exhibit A to the Agreement
shall be amended by addition of the following entities:  PHW Manager, LLC and Westgate Planet
Hollywood Las Vegas, LLC d/b/a PH Towers at Westgate.

 

 

3.             Exhibit B of the Agreement shall
be deleted and replaced by Exhibit B which is attached to this Amendment
and incorporated herein by reference.

 

4.             Wherever in the Agreement either
Party is required to make weekly reports to the other Party, said language
shall be modified such that the weekly reporting requirement shall only occur
upon request of the other Party.

 

5.             Except as specifically modified
herein, the Agreement shall remain in full force and effect. Should any
conflict arise related to the terms of the Agreement and the Amendment, the
terms in the Amendment shall be deemed controlling.

 

[THE REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK.]

 

2

 

IN
WITNESS WHEREOF, the parties hereby execute this Addendum to be effective on
the date first written above:

 

 

	
  HARRAH’S:

  	
   

  	
  SUPPLIER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PARBALL
  CORPORATION

  	
   

  	
  ALLEGIANT
  AIR, LLC

  
	
  d/b/a
  Bally’s Las Vegas

  	
   

  	
  a
  Nevada limited liability Company

  
	
  a
  Nevada corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
  PARIS
  LAS VEGAS OPERATING COMPANY, LLC

  	
   

  	
   

  
	
  d/b/a
  Paris Las Vegas

  	
   

  	
   

  
	
  a
  Nevada corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  FLAMINGO
  LAS VEGAS OPERATING COMPANY, LLC

  	
   

  	
   

  
	
  d/b/a
  Flamingo Las Vegas

  	
   

  	
   

  
	
  a
  Nevada corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  RIO
  PROPERTIES, INC.

  	
   

  	
   

  
	
  d/b/a
  Rio All-Suite Hotel and Casino

  	
   

  	
   

  
	
  a
  Nevada corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  

 

3

 

	
  HARRAH’S
  LAS VEGAS, INC.

  	
   

  	
   

  
	
  d/b/a
  Harrah’s Las Vegas

  	
   

  	
   

  
	
  a
  Nevada corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DESERT
  PALACE, INC.

  	
   

  	
   

  
	
  d/b/a
  Caesars Palace

  	
   

  	
   

  
	
  a
  Nevada corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  HARRAH’S
  IMPERIAL PALACE CORP.

  	
   

  	
   

  
	
  d/b/a
  Imperial Palace

  	
   

  	
   

  
	
  a
  Nevada corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CORNER
  INVESTMENT COMPANY, LLC

  	
   

  	
   

  
	
  d/b/a
  Bill’s Gamblin’ Hall & Saloon

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PHW
  Manager, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  

 

4

 

	
  Westgate
  Planet Hollywood Las Vegas, LLC

  	
   

  	
   

  
	
  d/b/a
  PH Towers at Westgate

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  

 

5

 

EXHIBIT B

 

Weekdays
(Sunday through Thursday)

 

·                  The Harrah’s property
indicated below shall provide to Supplier the following number of rooms (first
line) at the below listed pricing (line two).

 

WD
Tier 1

 

	
  BLV

  	
   

  	
  CLV

  	
   

  	
  FLV

  	
   

  	
  HLV

  	
   

  	
  ILV

  	
   

  	
  PHV

  	
   

  	
  PLV

  	
   

  	
  RLV

  	
   

  	
  TLV

  	
   

  	
  Total

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  

 

·                  Should Supplier exhaust its
supply of rooms during any single day at a Harrah’s property, the Harrah’s
property at which supply has been exhausted shall provide Supplier the
following number of rooms at the Tier 2 price listed immediately below for the
remainder of said day.

 

WD
Tier 2

 

	
  BLV

  	
   

  	
  CLV

  	
   

  	
  FLV

  	
   

  	
  HLV

  	
   

  	
  ILV

  	
   

  	
  PHV

  	
   

  	
  PLV

  	
   

  	
  RLV

  	
   

  	
  TLV

  	
   

  	
  Total

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  

 

Should
Supplier exhaust its supply of rooms during any single day at the Tier 2 price
at a Harrah’s property, Supplier may continue to book rooms (subject to
availability) at that Harrah’s property at a rate of [...***...].  Supplier shall have the right to inspect,
copy and audit Harrah’s books and records as provided in Section 5.1 of
the Agreement.

 

Weekend
(Friday and Saturday)

 

·                  The Harrah’s property
indicated below shall provide to Supplier the following number of rooms (first
line) at the below listed pricing (line two).

 

WE
Tier 1

 

	
  BLV

  	
   

  	
  CLV

  	
   

  	
  FLV

  	
   

  	
  HLV

  	
   

  	
  ILV

  	
   

  	
  PHV

  	
   

  	
  PLV

  	
   

  	
  RLV

  	
   

  	
  TLV

  	
   

  	
  Total

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  

 

·                  Should Supplier exhaust its
supply of rooms during any single day at a Harrah’s property, the Harrah’s
property at which supply has been exhausted shall provide Supplier the
following number of rooms at the Tier 2 price below listed immediately below
for the remainder of said day.

 

WE
Tier 2

 

	
  BLV

  	
   

  	
  CLV

  	
   

  	
  FLV

  	
   

  	
  HLV

  	
   

  	
  ILV

  	
   

  	
  PHV

  	
   

  	
  PLV

  	
   

  	
  RLV

  	
   

  	
  TLV

  	
   

  	
  Total

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  

 

Should
Supplier exhaust its supply of rooms during any single day at the Tier 2 price
at a Harrah’s property, Supplier may continue to book rooms (subject to
availability) at that Harrah’s property at a rate of [...***...].

 

6

 

Restrictions
applicable to all rooms provided to Supplier under the terms of the Agreement:

 

A.                                   The following
dates (commencing on each of the first listed dates, through and including each
of the last listed dates) shall be considered “special event” dates and
Supplier shall not be permitted to book any rooms at the preferred pricing
referred to hereinabove on said dates for the following properties referenced
hereinabove as “BLV”, “CLV”, “FLV”, “HLV”, “ILV”, “PHV”, “PLV”, and “RLV”:

 

a.                    [...***...]

b.                   [...***...]

c.                    [...***...]

d.                   [...***...]

e.                    [...***...]

f.                      [...***...]

g.                   [...***...]

h.                   [...***...]

 

B.                                     The following
dates (commencing on the first listed date, through and including the last
listed date) shall be considered “special event” dates and Supplier shall not
be permitted to book any rooms at the preferred pricing referred to hereinabove
on said dates for the following property referenced hereinabove as “TLV”:

 

a.               [...***...]

 

b.              [...***...]

 

C.                                     On special
event dates, Harrah’s shall provide Allegiant with rooms at rates that are
priced at [...***...]. If a special event date is stop-sold through other wholesale
channels for any individual Harrah’s property, inventory at said Harrah’s
property will also be “stop-sold” to Allegiant, which means that Allegiant
shall not be entitled to book any additional rooms at said Harrah’s property.

 

D.                                    If any date is
stop-sold at a Harrah’s property through other wholesale channels and Allegiant
has not, at the time the stop-sell occurs, used all blocked rooms in Tier One
and Tier Two for that Harrah’s property, Allegiant will be allowed to continue
to sell rooms at the agreed tier rates at the specific Harrah’s property that
is “stop selling” for all available allocated rooms in Tier One and up to 50%
of the available allocated rooms in Tier 2, but shall not be entitled to book
any other rooms at a discounted rate. By way of example:

 

1.               If Allegiant has booked
rooms less than the total allocated in Tier 1 for a Harrah’s property at the
time at which a stop sell occurs at that Harrah’s property for other wholesale
channels, Allegiant will be allowed to book the remaining rooms available to it
in Tier 1 at the specified Tier 1 rate, as well as 50% of its allocation in
Tier 2 at the Tier 2 rate.

 

2.               If Allegiant has booked a
room total greater than 50% of its allocation of Tier 2 rooms at the Harrah’s
property at the time the Harrah’s property moves to a stop-sell status,
Allegiant may not book any additional rooms for that date at the discounted
rates described in this Agreement.

 

E.                                      The allocation
of rooms provided to Allegiant as described herein is non-cumulative. In other
words, rooms not booked on a given day may not be carried over to any other
day. By way of example, if Allegiant books [...***...] rooms at Bally’s at the Tier
1 rate on a given weekday, it may not book [...***...] rooms at the Tier one rate
the next day.

 

7

 

AGREEMENT

 

Regardless
as to its date of execution this AGREEMENT (“Agreement”)
shall be deemed made, entered into and effective on this
           day of September,
2009 (“Effective Date”) by and between Parball Corporation dba Bally’s Las
Vegas, a Nevada corporation having its principal place of business located at
3465 Las Vegas Boulevard South, Las Vegas, Nevada 89109; Paris Las Vegas
Operating Company, LLC dba Paris Las Vegas, a Nevada corporation having its
principal place of business located at 3655 Las Vegas Boulevard South, Las
Vegas, Nevada 89109; Flamingo Las Vegas Operating Company, LLC dba Flamingo Las
Vegas, a Nevada corporation having its principal place of business located at
3555 Las Vegas Boulevard South, Las Vegas, Nevada 89109; Rio Properties, Inc.
dba Rio All-Suite Hotel and Casino, a Nevada corporation having its
principal place of business located at 3700 W. Flamingo Road, Las Vegas, Nevada
89103; Harrah’s Las Vegas, Inc. dba Harrah’s Las Vegas, a Nevada
corporation having its principal place of business located at 3475 Las Vegas
Boulevard South, Las Vegas, Nevada 89109; Desert Palace, Inc. dba Caesars
Palace, a Nevada corporation having its principal place of business located at
3570 Las Vegas Boulevard South, Las Vegas, Nevada 89109, Harrah’s Imperial
Palace Corp. dba Imperial Palace, a Nevada corporation having its principal
place of business located at 3535 Las Vegas Boulevard South, Las Vegas, Nevada
89109, and Corner Investment Company, LLC dba Bill’s Gamblin’ Hall &
Saloon, a Nevada limited liability company having its principal place of
business located at 3595 Las Vegas Boulevard South Las Vegas, Nevada 89109 (all
such entities being hereinafter collectively referred to as “Harrah’s”); and
ALLEGIANT VACATIONS, LLC., a Nevada limited liability company, (hereinafter
referred to as “Supplier”), having its principal place of business at 8360 S.
Durango Drive, Las Vegas, NV 89113. Harrah’s and Supplier are collectively
referred to as the “Parties” and each is singularly referred to as the Party.

 

WHEREAS, Supplier is a provider of
travel services through its website and;

 

WHEREAS, Harrah’s owns, operates
and/or manages, certain casino hotel properties in Las Vegas, Nevada; and

 

WHEREAS, Harrah’s desires to provide
Supplier with a certain number of hotel rooms (“Room(s)”) at some or all of its
Las Vegas owned and operated casino hotel properties (“Properties”) to be
offered for sale on Supplier’s website subject to the following terms and
conditions.

 

NOW, THEREFORE, for good and valuable consideration,
receipt of which is hereby acknowledged, the parties agree as follows:

 

1.             Term and
Termination/Payment to Harrah’s

 

1.1
This Agreement is entered into as of the Effective Date and shall terminate
upon the earlier of either a) eighteen (18) months following the effective
date; or b) utilization of the “Lump Sum” as such term is defined hereinbelow.

 

1.2
Upon execution of this Agreement, Supplier will pay to such entity designated
by Harrah’s the sum of Ten Million Dollars ($10,000,000.00) which sum (the “Lump
Sum”) represents advance payment for bookings effectuated through Supplier as
described further herein. Each of the casinos constituting “Harrah’s” under
this Agreement hereby acknowledges that it will benefit significantly from such
payment.

 

1.3
Either party will have the right to terminate this Agreement upon thirty (30)
days prior written notice to the other party in the event that: (1) the
other party is in default of any provision of this Agreement which default has
not been cured within thirty (30) days after receipt of written notice of the
default, or (2) the other party terminates operations, is involved in
bankruptcy, or engages in legal relief from creditors, in which event the
termination shall take effect immediately upon notice, or (3) if the other
party’s reputation, associations, or business practices are such that the
terminating party, in good faith, determines that further association would be
detrimental to the good name and reputation of the terminating party.

 

1.4
In the event of any termination of this Agreement under Section 1.3 or
elsewhere in this Agreement, Harrah’s will honor any reservations which have
been made through Supplier prior to the effective date of termination to the
extent the charges therefor are covered by the remaining portion of the Lump
Sum, a letter of credit on terms reasonably acceptable to Harrah’s or such
other financial arrangements reasonably acceptable to Harrah’s. In the event of
the termination of this Agreement for any reason whatsoever prior to the
depletion of the entire Lump Sum, Harrah’s shall be obligated to repay to
Supplier the unused portion of the Lump Sum as provided elsewhere herein, 

 

8

 

with
the understanding that Harrah’s may retain that portion of the Lump Sum
necessary to cover the room rates and taxes for reservations made prior to the
effective termination date.  Each of the
Harrah’s casinos which are parties to this Agreement shall be jointly and
severally obligated for the repayment obligation.

 

1.5
Upon any termination of this Agreement under Section 1.3 or elsewhere in
this Agreement for any reason whatsoever, and as a condition to Harrah’s
termination of this Agreement, Harrah’s shall refund to Supplier the remaining
balance of the Lump Sum reduced by a reasonable estimate of the room rates and
taxes for future bookings reserved under this Agreement prior to the effective
date of termination.  Harrah’s shall make
a good faith estimate of the amount of the refund and make an initial refund to
Supplier based on that estimate within fourteen (14) days after the effective
date of termination. The parties shall use good faith efforts to reconcile and
agree on such estimate (the “initial Reconciliation”) within thirty (30) days
after the effective date of termination and shall adjust the payments between
them based on such agreed upon reconciliation. The parties agree to make a
final reconciliation (“true up”) of the amounts retained by Harrah’s within
three (3) months after the termination date or as soon as reasonably
practicable thereafter after all future bookings have been satisfied. In the
event the parties are unable to agree on the interim Reconciliation or the
final reconciliation, either party shall have the right to submit the matter to
non-binding mediation with a mediator mutually agreeable to both parties (or
pursuant to the procedures of the American Arbitration Association in Las
Vegas, Nevada if the parties cannot agree upon a mediator within a reasonable
time). In the mediation, Harrah’s shall designate a single representative who
will have the authority to bind all of the parties constituting “Harrah’s.” The
parties agree to participate in the mediation in good faith.

 

1.6
In the event of the occurrence (prior to the termination of this Agreement) of
the signing of any contract for sale of any Harrah’s casino that is the subject
of this Agreement, Harrah’s shall cease accepting reservations (“Stop Sell”)
for said casino ninety (90) days prior to the scheduled closing date for said
sale. A Stop Sell for a particular casino shall also become effective upon the
filing of a petition in bankruptcy by or against such casino, in the event such
casino shall be unable to pay its debts as they come due or a receiver is appointed
for such casino, or in the event such casino shall cease hotel activities. Any
Harrah’s casino subject to a Stop Sell is referred to as a “Discontinued
Casino.”  Thereafter, Harrah’s shall make
rooms available to Supplier at its remaining casinos (the “Remaining Casino” or
“Remaining Casinos”) in a number that equals that which would otherwise be
available to Supplier at the Discontinued Casino for the remainder of the Term.
The number of rooms provided to Supplier at each Remaining Casino shall be in
proportion to the total number of rooms provided by each Remaining Casino as
compared to the total rooms provided by all Remaining Casinos. By way of
example, if a Stop Sell occurs at Flamingo Las Vegas as described in this
paragraph, for each week for the remainder of the Term, Bally’s Las Vegas will
accept up to 17 additional room reservations at Tier 1 pricing at Bally’s for
Sunday –Thursday reservations calculated as follows: The Tier 1 allocation of
Sunday – Thursday rooms is 80 rooms per week for Flamingo Las Vegas, 100 rooms
per week for Bally’s Las Vegas and 575 rooms per week for all casinos subject
to this Agreement. Bally’s would be allocated an additional number of rooms
equal to 11/(575 – 80) X 80 = 16.

 

In
the event a Stop Sell is implemented under this Section for three (3) or
more Harrah’s casinos, then Supplier will have the right to terminate this
Agreement without further obligation to Harrah’s and receive a refund as
provided in Section 1.5.

 

1.7
The Parties’ obligations in Sections 6, 8, 10, 15 and 18 shall survive
termination of this Agreement.

 

2.             Applicability
and Pricing

 

2.1
The terms and conditions of this Agreement are intended to be available to each
of Harrah’s Properties in existence on the Effective Date. A list of each of the
Harrah’s Properties to which this Agreement is applicable is set forth in Exhibit A. Supplier acknowledges,
understands and agrees that each individual entity and not any of its other
affiliated entities, is solely liable for the obligations imposed pursuant to
this Agreement, related to the Goods and Services provided by that Property.
This includes, but is not limited to, those obligations referred to in Sections
9 and 11 of the Agreement. In exchange for the payment made by Supplier to
Harrah’s, Harrah’s agrees to provide for the use of Supplier certain room
inventory upon dates, at rates and with the restrictions described in Exhibit B,
which is attached hereto and incorporated herein by reference. Harrah’s shall
debit the room rates against the amount Supplier has paid to Harrah’s as
described in paragraph 1.2 hereinabove upon check out of each reservation and
Harrah’s shall provide Supplier with a monthly accounting of same; provided,
however, that the reports shall be provided weekly after the remaining Lump Sum
has been reduced to $2,000,000. At the end of the Term, should 

 

9

 

there
be unused funds, Harrah’s shall return the same to Supplier within 10 business
days following conclusion of the Term.

 

2.2
If, during the Term, the balance of the Lump Sum has been reduced to
$2,000,000, then the parties shall negotiate in good faith an extension of this
Agreement and a replenishment of all or a portion of the Lump Sum subject to
the parties’ mutual agreement. If the balance of the Lump Sum has been
reduced below $1,000,000, Supplier may post an irrevocable letter of credit in
the amount of [...***...], which letter of credit shall be on terms and with a
financial institution reasonably agreeable to Harrah’s, consistent with the
previous business arrangement between the parties.  If Supplier fails to post such a letter of
credit, then Harrah’s shall not be required to honor subsequent reservations
made through Supplier unless other mutually satisfactory payment arrangements
shall have been made. Should Supplier not timely provide to Harrah’s the letter
of credit or should the Parties determine not to continue the Agreement, Harrah’s
shall be required to honor only those reservations for which sufficient Lump
Sum remains to fulfill payment obligations for the room rates and taxes for
said reservations or for which a letter of credit has been posted or other
mutually agreeable payment arrangements shall have been made.  In the event the charges for which Supplier
is responsible exceed the remaining Lump Sum, Supplier shall pay the amount
thereof within two (2) weeks after receipt of an invoice therefor
consistent with the prior practice of the parties.

 

2.3
Supplier agrees to market Harrah’s rooms on its website; provided, however,
that nothing herein shall preclude Supplier from selling competitive services
in Las Vegas or elsewhere.

 

3.             Room Restrictions

 

3.1
Supplier shall advise its customers that at the time of check-in (i) at
least one (1) guest per room must be twenty-one (21) years or older; and (ii) each
individual guest will be required to provide Harrah’s with valid photo
identification before such guest will be allowed to occupy a Room. If no photo
identification is provided, or in the event the photo identification does not
match the name on the reservation, Harrah’s reserves the right to refuse to
allow Supplier’s customers to check into the Room.

 

3.2
Harrah’s reserves the right to impose additional policies and room restrictions
at any of its properties; provided, however, that any such policies and room
restrictions shall be consistent with the restrictions generally applicable to
customers of other wholesalers, which policies and room restrictions are
attached hereto and incorporated herein as Exhibit D. Changes to these
policies and room restrictions shall be communicated to Supplier in writing and
delivered by either email, facsimile or express courier service and will be
effective immediately upon receipt.

 

4.             Relocation
Policy

 

4.1
Harrah’s will use reasonable commercial efforts to ensure that Rooms purchased
by Supplier’s customers will be available at the date and time of check-in.
Harrah’s reserves the right, however, at its sole discretion, to relocate
Supplier’s customer(s) to another Room within the same property or to
a different property, provided that the alternate accommodations are comparable
to or better than the original Room purchased by customer. Any such
relocation shall be made at no additional charge to customer or Supplier.

 

4.2
Harrah’s agrees that in employing its Relocation Policy it will not
differentiate between customers of Supplier and any other guest of Harrah’s
when determining which guests shall be required to relocate.

 

5.             Payments

 

5.1
Credit for Lump Sum Payment by Supplier to Harrah’s shall be as follows: Harrah’s
will provide a monthly report (weekly report after the Lump Sum has been
reduced to $2,000,000) to Supplier that will detail the number of rooms booked
and consumed by customers of Supplier, as well as the amounts deducted from the
Lump Sum payment. The only amounts that may be deducted from the Lump Sum shall
be the base room charges for Supplier’s customers and all taxes or other fees
required to be paid to any governmental authority.  Any additional charges shall be the
responsibility of the hotel guest, and Harrah’s shall be solely responsible for
arranging for the collection of these amounts, with the understanding that
Harrah’s shall not be required to fulfill reservations for any room unless at
least one occupant provides Harrah’s with a valid credit card (or cash deposit)
upon check-in. Supplier shall advise Customers of said policy prior to
accepting a Customer’s reservation. The Harrah’s casino for which a reservation
is booked shall prepare and maintain its books and records relating to its
bookings in accordance with its 

 

10

 

internal
accounting standards consistently applied. Said casino shall keep true, correct
and complete books and records with respect to its exercise of any of its
rights hereunder.  Once following each
three (3) month period during the Term for each casino that is the subject
of this Agreement, Supplier may inspect, copy and audit said casino’s book and
records related to the matters related to this Agreement, at Supplier’s
expense, at the casino’s regular place of business in the State of Nevada, any
time during normal business hours upon five (5) days prior written notice.

 

6.             Confidential
Information

 

6.1
Each Party acknowledges that the terms of this Agreement and any and all
information exchanged pursuant to this Agreement about the other Party’s
business which is not publicly known, including, without limitation, trade
secrets, customer lists, customer contact information, sales, cost or other
unpublished financial information, marketing data, and any other information of
a Party which is marked or identified as, or provided under circumstances
indicating that it ought to be treated as, confidential, is confidential and
proprietary information (“Confidential Information”). Notwithstanding anything
herein to the contrary, each individual staying at a Harrah’s casino shall be
deemed a “Harrah’s Customer” upon and after arrival and Harrah’s shall be
entitled to use information obtained from and related to said Customer without
regard to the requirements of this Section 6 following check-in of said
Customer.

 

6.2
Each Party shall treat as confidential all Confidential Information of the
other Party, shall not use such Confidential Information except as set forth
herein, and shall not disclose such Confidential Information to any third party
except to the extent required by law. Each Party shall disclose Confidential
Information of the other Party to their employees only on a need-to-know basis
and only if they are bound by confidentiality obligations not materially less
restrictive than those set forth herein. Without limiting the foregoing, each
of the parties shall use at least the same degree of care that it uses to
prevent the disclosure of its own confidential information of like importance
to prevent the disclosure of Confidential Information disclosed to it by the
other Party under this Agreement. Each Party shall promptly notify the other
Party of any actual or suspected misuse or unauthorized disclosure of the other
Party’s Confidential Information.

 

6.3
Notwithstanding the above, neither Party shall have any liability to the other
with regard to any Confidential Information of the other which the receiving
Party can prove: (a) was in the public domain at the time it was disclosed
or has entered the public domain through no fault of the receiving Party; (b) was
rightfully known to the receiving Party, without restriction, at the time of
disclosure; (c) was disclosed with the prior written approval of the
disclosing Party; (d) was independently developed by the receiving Party
without any use of the Confidential Information; (e) became rightfully
known to the receiving Party, without restriction, from a source other than the
disclosing Party, without breach of this Agreement by the receiving Party and
otherwise not in violation of the disclosing Party’s rights; or (f) is
disclosed pursuant to the order or requirement of a court, administrative
agency, or other governmental body; provided, however, that the receiving Party
shall provide prompt notice of the latter event to the disclosing Party to
enable the disclosing Party to seek a protective order or otherwise prevent or
restrict such disclosure.

 

6.4
The obligations of confidentiality hereunder shall apply during the term of
this Agreement and for a period of three (3) years thereafter.

 

6.5
The parties acknowledge that disclosure of any Confidential Information by one
Party will give rise to irreparable injury to the other Party, and, as a matter
of law, such injury is inadequately compensable in damages. Accordingly, the
injured Party may seek and obtain injunctive relief against the breach or
threatened breach of the foregoing undertakings, in addition to any other legal
remedies which may be available.

 

11

 

7.             Trademarks and Service Marks

 

7.1
Harrah’s Marks; License Grant to Supplier: Harrah’s shall provide Supplier with
electronic files containing the Harrah’s trademarks, logos, trade names and
service marks to be used for the limited purpose of satisfying the obligations
under this Agreement (the “Harrah’s Marks” or “Marks”). Subject to the terms
and conditions of this Agreement, Harrah’s hereby grants Supplier a
non-exclusive, royalty free, non-transferable (other than in connection with
any permitted assignment or transfer of this Agreement), license to use and
display the Harrah’s Marks during the Term solely as necessary to perform its
obligations under this Agreement, or as otherwise authorized under this
Agreement.

 

7.2
Supplier’s Marks Harrah’s shall not have the right to use or display any of
Supplier’s trademarks, logos, trade names or service marksunder this
Agreement

 

7.3
Intellectual Property Usage Guidelines: Each Party shall use the other’s Marks
including its trademarks, service marks, domain names, copyrights, logos,
designs, and all other forms of Intellectual property (the “Intellectual
Property”) only as provided, shall comply with any trademark usage or brand
standards guidelines as provided to it from time to time, and shall not alter
the Intellectual Property in any way, nor shall it act or permit action in any
way that would impair, disparage or diminish the rights of owning Party in its
Intellectual Property. No Party shall use the Marks as a domain name, any part
of a domain name, as a metatag or as a pay for placement term in its Internet
Advertising without the prior written approval of the other Party. Each Party
acknowledges that its use of the other Party’s Intellectual Property shall not
create any right, title or interest in or to such Intellectual Property. Each
Party shall have the right to monitor the quality of the other Party’s use of
its Intellectual Property. Additionally, each Party shall notify the other
promptly in writing of any known infringement of the other’s Intellectual
Property. Any references to a Party’s Intellectual Property shall contain the
appropriate trademark, copyright or other legal notice provided from time to
time by owning Party. If such inappropriate use is found, the owning Party
shall have the right to direct the other Party to cease use or modify such use
to be an appropriate use of the Party’s Intellectual Property. Neither Party
will at any time during or after the term of this Agreement, register, attempt
to register, claim any interest in, contest the use of, or otherwise adversely
affect the validity of any of the other Party’s Intellectual Property
(including, without limitation, any act or assistance to any act, which may infringe
or lead to the infringement of any such marks). The licenses described in this Section 12
shall end at the expiration of the initial term or any subsequent term of this
Agreement.

 

7.4
Keyword Buy Policy: Neither Party shall place an advertisement or any kind of
paid or free inclusions or bidding on any keywords that include the other Party’s
brands or trademarks in whole or variations thereof or any keyword combinations
and match types that may include any of the other Party’s brands or trademarks
on any search engines. This restriction also applies to any websites that offer
advertising or link inclusion with the goal of driving traffic to the
initiating Party’s web site(s). Any use of the other Party’s brands or
trademarks or any imagery of any type on any site other than those covered by
this Agreement must be approved in writing by the owner of the Mark, prior to
use. In addition, any Supplier found in violation of this policy is subject to
having either temporary or permanent forfeiture of the ability to sell Harrah’s
inventory.

 

8.             Infringement
of Intellectual Property Rights/Indemnification

 

8.1
Each party (the Indemnifying Party) shall defend, indemnify and hold harmless
the other party (the Indemnified Party) and its officers, directors and employees
from, and against, all claims, costs, damages, expenses, settlements, awards,
demands and liability, based on a claim that the services provided pursuant to
this Agreement (the “Services”) or any work product produced in connection with
the Services provided under this Agreement infringe any valid patent,
trademark, copyright or trade secret of a third party or similar claims
provided that (i) the Indemnified Party promptly notifies the Indemnifying
Party in writing of such action; (ii) the Indemnifying Party shall have
sole control of the defense of any such action and all negotiations for its
settlement or compromise, provided that no settlement or compromise may be
entered into by the Indemnifying Party without first obtaining a full and
complete release of the Indemnified Party; and (iii) the Indemnified Party
shall cooperate reasonably with the Indemnifying Party at the expense of the
Indemnifying Party in the defense, settlement or compromise of any such action.
In the event that a final injunction is obtained against the Indemnifying Party’s
use of the Services, or if the Indemnifying Party reasonably believes that the
Indemnified Party’s use of the Services could be so enjoined, or if in the
Indemnifying Party’s opinion any Services are likely to become the subject of a
successful claim of such infringement, the Indemnifying Party shall, at its
sole option and expense, (i) procure for the Indemnified Party the right
to continue 

 

12

 

using
the Services as provided in this Agreement, (ii) replace or modify the
Services so that they become non-infringing (so long as the functionality of
the Services is essentially unchanged) or, in the event neither of the previous
two options are commercially feasible for the Indemnifying Party, (iii) terminate
the rights granted hereunder with no further obligation on the part of the
Indemnified Party. This indemnification clause shall survive termination of
this Agreement with respect to indemnification obligations arising prior to
such termination. For all purposes of this Agreement, the only “Services” to be
performed by Supplier for Harrah’s under this Agreement shall be the booking of
reservations at the Harrah’s casinos.

 

8.2
Harrah’s shall defend, indemnify and hold harmless Supplier and its officers,
directors and employees from, and against, all claims, costs, damages,
expenses, settlements, awards, demands and liability, based on a claim that the
Harrah’s Marks authorized for use by Supplier under this Agreement infringe any
valid patent, trademark, copyright or trade secret of a third party or similar
claims provided that (i) Supplier promptly notifies Harrah’s in writing of
such action; (ii) Harrah’s shall have sole control of the defense of any
such action and all negotiations for its settlement or compromise, provided
that no settlement or compromise may be entered into by Harrah’s without first
obtaining a full and complete release of Supplier; and (iii) Supplier
shall cooperate reasonably with Harrah’s at the expense of Harrah’s in the
defense, settlement or compromise of any such action. In the event that a final
injunction is obtained against Supplier’s use of the Harrah’s Marks, or if
Harrah’s reasonably believes that Supplier’s use of the Harrah’s Marks could be
so enjoined, or if in Harrah’s opinion any Harrah’s Marks are likely to become
the subject of a successful claim of such infringement, Harrah’s shall, at its
sole option and expense, (i) procure for Supplier the right to continue
using the Harrah’s Marks as provided in this Agreement, (ii) replace or
modify the Harrah’s Marks so that they become non-infringing or, in the event
neither of the previous two options are commercially feasible for Harrah’s, (iii) terminate
the rights granted hereunder with respect to the Harrah’s Marks at issue. This
indemnification clause shall survive termination of this Agreement with respect
to indemnification obligations arising prior to such termination.

 

9.             Warranty

 

In
addition to the warranties provided in this Agreement:

 

9.1
Each of the Parties hereto represents and warrants to the other that (i) it
has full power and authority to enter into this Agreement and perform its
obligations hereunder, and (ii) all necessary corporate action has been
duly taken to authorize the individual signing below to sign this Agreement.

 

9.2             Supplier
warrants that all Services will be provided herein in a professional manner and
according to industry standards.

 

9.3             Supplier
represents and warrants that it has, and will maintain during the term of this Agreement,
all permits, approvals and licenses required for it to satisfy its obligations
under this Agreement.

 

10.          Defense, Indemnity and
Hold Harmless

 

10.1
Each Party (the Indemnifying Party), its parent, subsidiary or affiliated
companies, shall defend, indemnify and hold harmless the other Party (the
Indemnified Party), its parent, subsidiary, affiliated companies, and their
officers, directors and employees from, and against, all claims, costs,
damages, expenses, settlements, awards, demands and liability of any kind or
nature whatsoever, including attorney’s fees, court costs, costs of appeal and
expert witness fees for injury, loss, harm, or damage to persons or property
because of or in any manner connected with or arising out of (a) any
negligent, reckless or willful act or omission of the Indemnifying Party, its
parent, subsidiary or affiliated companies, (b) the Indemnifying Party’s
violation of any law, statute, ordinance or regulation applicable to its
business or sales activities, and (c) any material breach of this
Agreement by the Indemnifying Party.

 

10.2
Additionally, Harrah’s shall defend, indemnify and hold harmless Supplier, its
parent, subsidiary or affiliated companies, its officers, directors and
employees from, and against, all claims, costs, damages, expenses, settlements,
awards, demands and liability of any kind or nature whatsoever, including
attorney’s fees, court costs, costs of appeal and expert witness fees for
injury, loss, harm, or damage (i) to the extent attributable to a guest’s
stay at any Harrah’s property, or (ii) in connection with Supplier’s use
of direct connectivity technology required under Section 3 of this
Agreement.

 

13

 

10.3
Additionally, Supplier shall defend, indemnify and hold harmless Harrah’s, its
parent, subsidiary or affiliated companies, its officers, directors and
employees from, and against, all claims, costs, damages, expenses, settlements,
awards, demands and liability of any kind or nature whatsoever, including
attorney’s fees, court costs, costs of appeal and expert witness fees for
injury, loss, harm, or damage in connection with any damage, injury or death to
any patron to the extent attributable to Supplier’s provision of airline travel
to any individual making reservations at Harrah’s through Supplier.

 

10.4
These provisions shall continue to apply upon termination of this Agreement for
obligations arising prior to such termination.

 

11.          Force Majeure

 

11.1
Each Party’s performance shall be excused for any delay or lack of delivery
resulting directly or indirectly from any foreign or domestic embargo, product
detention, seizure, act of God, insurrection, and/or continuance of war, the
passage or enactment of any law or ordinance, regulation, ruling or order
interfering directly with delivery or other means of transportation due to
fire, flood, explosion, riot, strike or other acts of nature or man that are
beyond the reasonable control of such Party unless such contingency is specifically
excluded in another part of this Agreement (“Force Majeure Event”). In the
event there is a delay or lack of delivery of services for more than thirty
(30) consecutive days due to a Force Majeure Event, the non-affected Party may
terminate this Agreement upon written notice to the affected Party.

 

12.          Insurance

 

12.1
General Liability and Auto Liability Insurance: Supplier shall obtain, carry
and keep in full force and effect a general liability insurance policy in the
amount of $2,000,000.00 per occurrence and $2,000,000.00 in the aggregate and
shall include blanket contractual, independent contractual, broad form property
damage, cross liability, severability of interests, personal and advertising
injury. Supplier shall also carry automobile insurance for bodily injury and
property damage in the amount of $1,000,000.00 per accident. Such automobile
coverage shall cover owned, hired and non-owned automobiles. Supplier agrees
that each Harrah’s entity named in the opening paragraph of this Agreement and
each of those entities’ parents, subsidiaries and affiliates (hereinafter
collectively referred to as “Casino Group”) shall be named as additional
insureds under such policy or policies. The coverage for an additional insured
shall apply on a primary basis irrespective of any other insurance whether
collectable or not.

 

12.2
Evidence of Insurance: Supplier agrees that the insurance required herein may
not be canceled prior to the end of the term of this Agreement. Supplier agrees
to provide to Harrah’s a certificate of insurance in accordance with the
foregoing upon the execution of this Agreement. Certificate of insurance shall
be provided both directly to Harrah’s and via electronic format to
Ins_Certs@Harrahs.com. Supplier’s failure to provide a copy of the required
certificate shall not relieve Supplier of its responsibility to secure the
required insurance policy. Supplier’s failure to obtain the required
certificate shall not be considered a waiver of Supplier’s material obligation
to secure the required insurance and name the appropriate additional insureds.
All policies of insurance shall (1) provide for not less than 30 days
prior written notice of cancellation or material change to Harrah’s, (2) have
an A.M. Best rating of A or better, (3) be primary and
non-contributory with respect to any other insurance or self-insurance program
of Harrah’s, and (4) provide a waiver of subrogation to each Harrah’s
casino that is a party to this Agreement, as well as Harrah’s Operating Company, Inc.
Supplier further agrees that it shall request any subcontractors or sub-vendors
engaged by Supplier to perform Services under this Agreement to carry like and
similar insurance with the same additional insured requirements.

 

12.3
Failure to Maintain Insurance: Failure to maintain the insurance required in
this section will constitute a material breach of contract and may result in
termination of this Agreement at Harrah’s option.

 

12.4
Representation of Insurance: By requiring the insurance as set out in this
section, Harrah’s does not represent that coverage and limits will necessarily
be adequate to protect Supplier, and such coverage and limits shall not be
deemed as a limitation on Supplier’s liability under the indemnities provided
to Harrah’s in this Agreement, or any other provision of the Agreement.

 

14

 

13.          Compliance with Law

 

13.1
Both Supplier and Harrah’s shall at all times fully comply with and faithfully
carry out all laws, statutes, ordinances, regulations, promulgations and
mandates of all duly constituted authorities applicable to the use,
maintenance, safety and occupancy of the Harrah’s premises, performance of the
Services pursuant to this Agreement and the conduct of business therein, and
any failure to do so shall constitute a default under this Agreement in which
event this Agreement may be immediately terminated by the other Party. Harrah’s
acknowledges that no Supplier personnel will be on Harrah’s premises for the
performance of Services under this Agreement. Both Supplier and Harrah’s shall
at all times maintain in good standing and effect all necessary and proper
business licenses and other licenses and permits relating to its business
operations. Supplier agrees that the Services will comply with all federal,
state and local laws, including but not limited to obtaining, where necessary,
approval as a vendor by any governmental or other regulatory body which
regulates casino gaming. If applicable, Supplier warrants that it shall comply
with Gramm-Leach-Bliley Act, 15 USC, Subchapter 1, Sec. 6801-6809 and
specifically 16 CFR Part 314 in its entirety in the implementation and
maintenance of appropriate safeguards for all customer information provided to
Supplier by Harrah’s.

 

14.          Suitability or Licensure
Before Commission

 

14,1
As a holder of a privileged gaming license, Harrah’s is required to adhere to
strict laws and regulations regarding vendor and other business relationships.
If at any time Harrah’s determines, in its sole discretion, that its association
with Supplier, its principals or any key employees could violate any applicable
statutes and regulations regarding prohibited relationships with gaming
companies, Harrah’s may immediately terminate this Agreement and have no
further liability to Supplier whatsoever, except to honor reservations made
prior to the effective date of termination and except for the repayment
required under Section 1.5 hereof.

 

14.2
If this Agreement requires that Supplier be licensed by any federal, state,
and/or local gaming regulatory agency (“Gaming Authorities”), then Supplier may
secure said licensing at its sole cost and expense or, alternatively, terminate
this Agreement without liability to Harrah’s.

 

14.3
It is fully understood by and between the parties that licensure of Supplier
with any applicable Gaming Authorities, if required, shall be and is a
condition that must be met before Harrah’s can proceed with this Agreement. If
there are no Gaming Authority requirements that Supplier be licensed to perform
these Services, but this Agreement is valued in excess of $750,000 per year,
Supplier agrees to complete and submit to Harrah’s a Business Information Form and
to undergo Harrah’s background investigation process to comply with Harrah’s
compliance policies. Harrah’s acknowledges that the Business Information Form has
already been received from Supplier and that Supplier has already undergone
Harrah’s background investigation process.

 

14.4  If any Gaming Authority requires approval of
this Agreement or its terms, it is understood by and between the Parties that
this approval shall be obtained prior to the performance of any part of this
Agreement. If the Gaming Authority disapproves the Agreement or its terms and
conditions, Harrah’s shall have the right to immediately terminate the
Agreement without further liability to Supplier except to honor reservations
made prior to the effective date of termination and except for the repayment
required under Section 1.5 hereof. If a certain jurisdiction has
preferential licensing, Supplier shall comply with such requirements, if
reasonable to do so.

 

14.5  It is understood and agreed by and between
the Parties that if, at any time, either prior to or subsequent to the
initiation of this Agreement, the Gaming Authorities render a final
determination disapproving the terms and conditions of this Agreement or
denying the application of Supplier, its agents, and/or assignee(s), and/or its
transferee(s), for any applicable license, or if Harrah’s makes a determination
upon investigation that Supplier is unsuitable, then this Agreement shall be
deemed terminated as of the date of such disapproval, denial, or determination
as though such date were the date originally fixed herein for termination of
this Agreement. In the event of such termination, Harrah’s shall not be deemed
in default under any provision of this Agreement. Such termination shall not
impact Harrah’s obligation to honor reservations made prior to the effective
date of termination or Harrah’s obligation to make the repayment required under
Section 1.5 hereof.

 

15

 

15.          Attorney Fees

 

15.1
In the event either Party brings an action against the other to enforce the
term, covenants and conditions of this Agreement, or to defend an action
brought by the other Party, the prevailing Party in such action shall be
reimbursed by the other Party for such costs as may be incurred in such action
and any appeal therefrom, including reasonable attorneys’ fees, court costs and
expert witness fees.

 

16.          Notices

 

16.1
Any and all notices or demands provided for, permitted or required to be given
in this Agreement shall be in writing and be conclusively deemed to have been
given if (i) personally delivered to the Party entitled to receive the
same, or (ii) five (5) days after depositing it in a United States
mailbox either by certified or registered mail, postage prepaid, in a sealed
envelope addressed to the name and address of the Party entitled to receive the
same as set forth hereinabove or (iii) one (1) day if sent via fax to
the number listed below and a confirmation receipt is generated or (iv) two
(2) days if sent by first class overnight, nationally known delivery or
courier service, prepaid in a sealed envelope or package addressed to the name
and address of the Party entitled to receive the same as set forth below:

 

	
  To
  Harrah’s:

  	
  Harrah’s

  
	
   

  	
  Attn:
  Revenue Management

  
	
   

  	
  One
  Harrah’s Court

  
	
   

  	
  Las
  Vegas, Nevada 89119-4312

  
	
   

  	
   

  
	
  With
  Copy to:

  	
  General
  Counsel

  
	
   

  	
  One
  Harrah’s Court

  
	
   

  	
  Las
  Vegas, Nevada 89119-4312

  
	
   

  	
  Fax:
  (702) 494-4323

  
	
   

  	
   

  
	
  To
  Supplier:

  	
  ALLEGIANT
  VACATIONS, LLC.

  
	
   

  	
  Attn:
  Christopher Stacey

  
	
   

  	
  8360
  S. Durango Drive

  
	
   

  	
  Las
  Vegas, Nevada 89113

  
	
   

  	
   

  
	
  With
  Copy to:

  	
  Robert
  B. Goldberg, Esq.

  
	
   

  	
  Ellis
  Funk, P.C.

  
	
   

  	
  3490
  Piedmont Road, NE, Suite 400

  
	
   

  	
  Atlanta,
  Georgia 30305

  
	
   

  	
  Fax:
  (404) 233-2188

  

 

17.          Security Procedures

 

Supplier
shall be responsible for reasonable screening of all of Supplier’s employees,
and, at Harrah’s request, Harrah’s shall receive copies of any screening,
investigations or background checks for Supplier’s employees that will have
access to Harrah’s Confidential Information. Upon reasonable request, Harrah’s
may conduct a background check on any and all of Supplier’s employees that have
been granted access to Harrah’s Confidential Information, in its sole
discretion and at its sole expense, provided such employee(s) consent.
Harrah’s may require Supplier to not permit any of Supplier’s employees to work
on Harrah’s account or to perform Services on Harrah’s property at any time.
Supplier shall use its best efforts to assist and cooperate with any
investigation initiated by Harrah’s loss prevention or security personnel
involving any of Supplier’s employees. If Supplier maintains a crime insurance
policy or bond that provides coverage for losses caused by the criminal acts of
its employees or others, Supplier shall name Harrah’s as an additional insured
under such coverage and shall provide Harrah’s with evidence of such coverage
upon request. Supplier’s employees shall comply with Harrah’s security
procedures at all times, and if any of Supplier’s employees is found in
violation of such procedures by Harrah’s, Harrah’s may remove them from Harrah’s
account or property immediately, in its sole discretion.

 

16

 

18.          General Provisions

 

18.1
This Agreement, the Exhibits thereto form the entire agreement between the
parties and supersedes all prior agreements, proposals, representations and
communications between the parties relating to the subject matter described
herein. Notwithstanding the foregoing, however, nothing herein shall be deemed
to terminate the Master Distribution Agreement (“MDA”) currently existing by
and between Supplier and the Harrah’s entities that are parties to said agreement,
except that during the Term of this Agreement, the terms of the MDA shall not
apply to the Harrah’s casinos that are parties to this Agreement. Upon
termination of this Agreement, the terms of the MDA shall become and remain in
full force and effect as related to the Harrah’s casinos that are parties to
this Agreement. The parties stipulate that neither of them has made any
representation with respect to the subject matter of this Agreement or any
representation including the extension and delivery hereof except such
representations as are specifically set forth herein, and each of the parties
acknowledges that it has relied on its own judgment in entering into this
Agreement upon the facts within their knowledge. No verbal agreement or implied
covenant shall be held to vary the provisions hereof, any statements, law or
custom to the contrary notwithstanding. No promise, representation, warranty or
covenant not included in this Agreement has been or is relied upon by either
Party. Any amendment of this Agreement shall be in writing and signed by both
parties.

 

18.2
If a part of this Agreement is held unenforceable or invalid or prohibited
under law, it shall be struck from this Agreement and shall not affect the
enforceability of the other parts of this Agreement.

 

18.3
In the event of a dispute by either Party against the other, each Party will
continue to perform their respective obligations in good faith without delay in
accordance to the terms and conditions of this Agreement, as if there were no dispute,
until such dispute is resolved.

 

18.4
This Agreement shall be governed by, construed in and enforced in accordance
exclusively with the laws of the State of Nevada without regard to its conflict
of laws provisions. If any provision of this Agreement is rendered inoperative
or illegal by operation of law or otherwise, all other provisions contained
herein shall remain in full force and effect, and in such cases the principle
of severability shall govern. The Parties agree that should any dispute arise
hereon, then such dispute will be litigated, if necessary, solely and
exclusively in the courts of Clark County, Nevada, and in no other jurisdiction
or forum.

 

18.5
Neither this Agreement nor any of the rights or obligations hereunder may be
assigned by either Supplier or Harrah’s without the prior written consent of
the other Party; provided that without the prior written consent of the other
Party, this Agreement or any of the rights or obligations hereunder may be
assigned (i) in connection with the merger or consolidation of such Party
with or into another entity or the sale of all or substantially all of the
assets or equity of such Party; (ii) by Supplier only to those entities,
under common control and ownership of Supplier, such common control and
ownership being defined as the direct or beneficial ownership of a voting
interest of at least fifty percent (50%), and (iii) by Harrah’s to an
Affiliate. Subject to the foregoing, this Agreement shall be binding upon and
inure to the benefit of the Parties hereto and their successors and permitted
assigns.

 

“Affiliate”
is defined as those current and future entities, under common control and
ownership of Harrah’s such common control and ownership being defined as the
direct or beneficial ownership of a voting interest of at least fifty percent
(50%) of the right or power, directly or indirectly, to elect a majority of the
Board of Directors, and includes all current and future entities managed by
Harrah’s.

 

18.6
There are no third-party beneficiaries to this Agreement, and it will not be
construed to create such rights, benefits or remedies generally.

 

18.7
No delay or single, partial, failure, abandonment or discontinuance of either
party to exercise any right, power or privilege hereunder will affect such
right, power or privilege,  The parties’
rights and remedies under this Agreement are cumulative and not exclusive.  Any waiver, consent or approval of any
failure to comply, breach or default under this Agreement must be in writing,
will be effective only to the extent set forth in such writing and will not
continue to apply to additional failures to comply, breaches or defaults.

 

18.8
The headings to the sections of this Agreement are included merely for
convenience of reference and shall not affect the meaning of the language
included therein.

 

18.9
The parties acknowledge and agree that they are dealing with each other
hereunder as independent contractors. Nothing contained in this Agreement shall
be interpreted as constituting either party the joint venturer, 

 

17

 

employee
or partner of the other party or as conferring upon either party the power of
authority to bind the other party in any transaction with third parties.

 

18.10
In the event any provision of this Agreement is held by a court or other
tribunal of competent jurisdiction to be unenforceable, such provision shall be
reformed only to the extent necessary to make it enforceable, and the other
provisions of this Agreement will remain in full force and effect.

 

18.11
This Agreement may be executed 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. This Agreement may be executed and delivered by facsimile and
the parties agree that such facsimile execution and delivery shall have the
same force and effect as delivery of an original document with original
signatures and that each party may use such facsimile signatures as evidence of
the execution and delivery of this Agreement by all parties to the same extent
that an original signature could be used.

 

18.12
Supplier acknowledges its receipt of Harrah’s Business Policy which is attached
hereto and incorporated herein by reference as Exhibit C.

 

[SIGNATURES ON FOLLOWING PAGES]

 

18

 

IN
WITNESS WHEREOF, the parties hereby execute this Agreement to be effective on
the date first written above:

 

 

	
  HARRAH’S:

  	
   

  	
  SUPPLIER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PARBALL
  CORPORATION

  	
   

  	
  ALLEGIANT
  VACATIONS, LLC

  
	
  d/b/a
  Bally’s Las Vegas

  	
   

  	
  a
  Nevada limited liability company

  
	
  a
  Nevada corporation

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  By:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Title:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Date:

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PARIS
  LAS VEGAS OPERATING COMPANY, LLC

  	
   

  	
   

  
	
  d/b/a
  Paris Las Vegas

  	
   

  	
   

  
	
  a
  Nevada limited liability company

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  FLAMINGO
  LAS VEGAS OPERATING COMPANY, LLC d/b/a Flamingo Las Vegas

  	
   

  	
   

  
	
  a
  Nevada limited liability company

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  RIO
  PROPERTIES, INC.

  	
   

  	
   

  
	
  d/b/a
  Rio All-Suite Hotel and Casino

  	
   

  	
   

  
	
  a
  Nevada corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  

 

19

 

	
  HARRAH’S
  LAS VEGAS, INC.

  	
   

  	
   

  
	
  d/b/a
  Harrah’s Las Vegas

  	
   

  	
   

  
	
  a
  Nevada corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DESERT
  PALACE, INC.

  	
   

  	
   

  
	
  d/b/a
  Caesars Palace

  	
   

  	
   

  
	
  a
  Nevada corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  HARRAH’S
  IMPERIAL PALACE CORP.

  	
   

  	
   

  
	
  d/b/a
  Imperial Palace

  	
   

  	
   

  
	
  a
  Nevada corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CORNER
  INVESTMENT COMPANY, LLC

  	
   

  	
   

  
	
  d/b/a
  Bill’s Gamblin’ Hall & Saloon

  	
   

  	
   

  
	
  a
  Nevada limited liability company

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

20

 

EXHIBIT A

 

PROPERTY LOCATIONS

 

BALLY’S LAS VEGAS

3645
LAS VEGAS BLVD SOUTH

LAS
VEGAS, NV 89109

702-739-4111

 

CAESARS PALACE

3570
LAS VEGAS BLVD

LAS
VEGAS, NV 89109

702-731-7110

 

FLAMINGO LAS VEGAS

3555
LAS VEGAS BLVD SOUTH

LAS
VEGAS, NV 89109

702-733-3111

 

HARRAH’S LAS VEGAS

3475
LAS VEGAS BLVD SOUTH

LAS
VEGAS, NV 89109

702-369-5000

 

IMPERIAL PALACE

3535
LAS VEGAS BLVD. SO.

LAS
VEGAS, NV 89109

702-731-3311

 

PARIS LAS VEGAS

3655
LAST VEGAS BLVD SOUTH

LAS
VEGAS, NV 89109

702-946-7000

 

RIO SUITES HOTEL & CASINO

3700
WEST FLAMINGO RD

LAS
VEGAS, NV 89103

702-252-7777

 

BILL’S GAMBLIN’ HALL & SALOON

3595
LAS VEGAS BOULEVARD SOUTH

LAS
VEGAS, NV 89101

702-737-2100

 

 

EXHIBIT B

 

Weekdays
(Sunday through Thursday)

 

·                  The Harrah’s
property indicated below shall provide to Supplier the following number of
rooms (first line) at the below listed pricing (line two).

 

WD
Tier 1

 

	
  BLV

  	
   

  	
  CLV

  	
   

  	
  FLV

  	
   

  	
  HLV

  	
   

  	
  ILV

  	
   

  	
  PLV

  	
   

  	
  RLV

  	
   

  	
  Total

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  

 

·                  Should Supplier
exhaust its supply of rooms during any single day at a Harrah’s property, the
Harrah’s property at which supply has been exhausted shall provide Supplier the
following number of rooms at the Tier 2 price listed immediately below for the
remainder of said day.

 

WD
Tier 2

 

	
  BLV

  	
   

  	
  CLV

  	
   

  	
  FLV

  	
   

  	
  HLV

  	
   

  	
  ILV

  	
   

  	
  PLV

  	
   

  	
  RLV

  	
   

  	
  Total

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  

 

·                  Should Supplier
exhaust its supply of rooms during any single day at the Tier 2 price at a
Harrah’s property, Supplier may continue to book rooms (subject to
availability) at that Harrah’s property and shall be debited at [...***...].  Supplier shall have the right to inspect,
copy and audit Harrah’s books and records as provided in Section 5.1 of
the Agreement.

 

Weekend
(Friday and Saturday)

 

·                  The Harrah’s
property indicated below shall provide to Supplier the following number of
rooms (first line) at the below listed pricing (line two).

 

WD
Tier 1

 

	
  BLV

  	
   

  	
  CLV

  	
   

  	
  FLV

  	
   

  	
  HLV

  	
   

  	
  ILV

  	
   

  	
  PLV

  	
   

  	
  RLV

  	
   

  	
  Total

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  

 

·                  Should Supplier
exhaust its supply of rooms during any single day at a Harrah’s property, the
Harrah’s property at which supply has been exhausted shall provide Supplier the
following number of rooms at the Tier 2 price below listed immediately below
for the remainder of said day.

 

WD
Tier 2

 

	
  BLV

  	
   

  	
  CLV

  	
   

  	
  FLV

  	
   

  	
  HLV

  	
   

  	
  ILV

  	
   

  	
  PLV

  	
   

  	
  RLV

  	
   

  	
  Total

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  
	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  	
  [...***...]

  	
   

  

 

·                  Should Supplier
exhaust its supply of rooms during any single day at the Tier 2 price at a
Harrah’s property, Supplier may continue to book rooms (subject to
availability) at that Harrah’s property and shall be debited at [...***...].

 

 

Restrictions
applicable to all rooms provided to Supplier under the terms of the Agreement:

 

A.            The following dates shall be
considered “special event” dates and Supplier shall not be permitted to book
any rooms at the preferred pricing referred to hereinabove on said dates:

 

a.               [...***...]

b.              [...***...]

c.               [...***...]

 

B.             On special event dates, Harrah’s
shall provide Allegiant will rooms at rates that are priced at [...***...]. If a
special event date is stop-sold through other wholesale channels for any
individual Harrah’s property, inventory at said Harrah’s property will also be “stop-sold”
to Allegiant, which means that Allegiant shall not be entitled to book any
additional rooms at said Harrah’s property.

 

C.             If any date is stop-sold at a
Harrah’s property through other wholesale channels and Allegiant has not, at
the time the stop-sell occurs, used all blocked rooms in Tier 1 and Tier 2 for
that Harrah’s property, Allegiant will be allowed to continue to sell rooms at
the agreed tier rates at the specific Harrah’s property that is “stop selling”
for all available allocated rooms in Tier 1 and up to 50% of the available
allocated rooms in Tier 2, but shall not be entitled to book any other rooms at
a discounted rate. By way of example:

 

3.               If Allegiant
has booked rooms less than the total allocated in Tier 1 for a Harrah’s
property at the time at which a stop sell occurs at that Harrah’s property for
other wholesale channels, Allegiant will be allowed to book the remaining rooms
available to it in Tier 1 at the specified Tier 1 rate, as well as 50% of its
allocation in Tier 2 at the Tier 2 rate.

 

4.               If Allegiant
has booked a room total greater than 50% of its allocation of Tier 2 rooms at
the Harrah’s property at the time the Harrah’s property moves to a stop-sell
status, Allegiant may not book any additional rooms for that date at the
discounted rates described in this Agreement.

 

D.             The allocation of rooms provided to
Allegiant as described herein is non-cumulative. In other words, rooms not
booked on a given day may not be carried over to any other day. By way of
example, if Allegiant books [...***...] rooms at Bally’s at the Tier 1 rate on a
given weekday, it may not book [...***...] rooms at the Tier 1 rate the next day.

 

 

CONFIDENTIAL TREATMENT
REQUESTED

 

EXHIBIT C

 

HARRAH’S BUSINESS POLICY

 

Harrah’s
Entertainment, Inc., and its subsidiaries and affiliates (“Harrah’s” or
the “Company”) conduct business in a highly regulated environment pursuant to
licenses issued by numerous gaming regulatory agencies. As a  result,
Harrah’s is required to adhere to strict standards regarding its business
relationships. The following standards of ethics and conduct must be adhered to
in connection with a business relationship with Harrah’s.

 

NON-DISCLOSURE OF CONFIDENTIAL INFORMATION

 

During
the course of its association with you, Harrah’s may disclose information,
data, operating results, internal projections, internal reports and other
information deemed proprietary to Harrah’s. While Harrah’s considers any
disclosure of such information inappropriate, if you are specifically notified
by Harrah’s that such information is confidential and proprietary, as part of
Harrah’s policies, you must agree to the following.

 

·                       Disclose such
information only to your employees with a need to know the information in order
to fulfill their obligations in connection with the relationship with Harrah’s;

·                       Use the highest
degree of care to avoid disclosure to any third party and to refrain from
publishing any information obtained by your employees, agents, or
representatives through your relationship with Harrah’s;

·                       Refrain from
disclosing to any third party any written or verbal information provided by
Harrah’s without first obtaining written permission from an authorized Harrah’s
representative; and

·                       Refrain from
copying or otherwise reproducing any of the information obtained by your
employees, agents, or representatives through your relationship with Harrah’s.

 

Note: The foregoing does
not supersede any other obligations specified in any particular agreement with
Harrah’s.

 

CONFLICTS OF INTEREST

 

Offers of Payments, Loans, Entertainment and
Gifts by Any Company Doing Business with Harrah’s

 

Harrah’s
employees must avoid acts and situations that are improper or that might impair
good judgment when acting on behalf of the company. As such, gifts, services
and entertainment outside the normal course of business and valued at more than
$250 are not to be given to or received by Harrah’s employees. While we
discourage our vendors and suppliers from giving gifts, nominal gifts valued at
less than $250 may be given to or received from persons or entities with which
Harrah’s conducts business in accordance with accepted business practices. The
giving or receiving of CASH is strictly prohibited.

 

Harrah’s
employees are also prohibited from accepting travel and/or lodging by any
company doing business with Harrah’s without the prior written approval of the
appropriate personnel.

 

Prohibited receipts and payments

 

The
payment of or acceptance of anything of value directly or indirectly; is prohibited
from any party/business entity.

 

Harrah’s
employees shall not ask, or direct any company doing business with Harrah’s, to
make any payment for or on Harrah’s behalf or with funds provided by Harrah’s,
to any public official or any government or government agency (domestic or
foreign).

 

Political Contributions

 

Harrah’s
employees shall not ask or direct any company doing business with Harrah’s to
make any political contribution or expenditure for or on the Company’s behalf
or with funds provided by the Company.

 

Interests in Organizations Doing Business with the Company

 

·                       Employees may
not have an interest in a firm (other than an insignificant interest) that does
business with Harrah’s.

 

 

·                  Employees may
not engage in a private business relationship with a person or firm doing
business with the Company, particularly if the individual supervises the
Company’s relationship with that person or firm.

·                  Employees may
not engage in a private business venture with an officer or other employee of a
firm that competes with the Company.

·                  Employees may
not engage in a competing business or own stock or other securities of a
competitor other than insignificant interests.

 

Hotline

 

The
Company has established a Hotline for employees and interested third parties
such as vendors, and business partners to anonymously report suspected criminal
activity, illegal misconduct or unethical conduct and/or suspected safety
violations occurring within the Company. The Hotline number is 1-877-450-5199.
If you choose not to give your name when you report your concern, your
anonymity will be protected. The Hotline is maintained by an outside reporting
agency. Calls are not recorded; there is no caller ID system.

 

 

CONFIDENTIAL TREATMENT
REQUESTED

 

EXHIBIT D

 

DIRECT
CONNECTIVITY

 

Harrah’s
has contracted with HBSi, Inc., as its technology solution for direct
connectivity between each Harrah’s property and the many distribution channels
they work with.

 

ROOM
BLOCKS AND RATES

 

Once
direct connectivity is established between SUPPLIER and HOTEL, all inventory
and rates will be exchanged automatically via the direct connect technology
between SUPPLIER and HOTEL. During the term of this Agreement, the room block,
room rates and room availability exchanged shall be in accordance with Exhibit B.

 

LAND
ONLY RATES

 

Once
direct connectivity is established, in addition to “Package” rates, SUPPLIER
will also have the ability to sell “land only rates” (standalone hotel rooms
which are not bundled with airfare).

 

Supplier
acknowledges that Harrah’s “Best Rate Guarantee” Policy provides that Harrah’s
customers will receive the lowest possible room rates available through Harrah’s
owned sites and distribution channels. 
In furtherance of this policy, Supplier is required to apply a mark up
above the wholesale price charged to Supplier by Harrah’s for all properties
resold on Supplier’s site.  The
mark up must be sufficient to raise the selling price of the room only sale to
the same price (or higher) than the rate offered to the general public on
Harrah’s proprietary websites.

 

RESERVATION
INFORMATION

 

Once
direct connectivity is established, reservation information will be
passed electronically via HBSi from Supplier to Hotels.

 

In
the absence of direct connectivity, SUPPLIER shall either forward to HOTEL all
reservations booked as they are reserved or via one rooming list containing all
reservations booked within a twenty-four (24) hour period, once per day at a
mutually agreed upon time.  Said
reservation notice/rooming list shall contain valid guest names only, no “TBA”
designations or rooms requested under company names.  The reservation notice/rooming list is to be
transmitted via email or fax to the Room Reservations Department as
outlined below.

 

Las
Vegas Reservations Department

	
  Phone:

  	
  702-733-3239

  
	
  Fax:

  	
  702-697-2655

  
	
  Email:

  	
  blv_wholesale@harrahs.com

  
	
   

  	
  clv_wholesale@harrahs.com

  
	
   

  	
  flv_wholesale@harrahs.com

  
	
   

  	
  hlv_wholesale@harrahs.com

  
	
   

  	
  ilv_wholesale@harrahs.com

  
	
   

  	
  plv_wholesale@harrahs.com

  
	
   

  	
  rlv_wholesale@harrahs.com

  

 

CUT
OFF

 

At
72 hours prior to arrival, all rooms within the contracted block not sold will
automatically be released back to the HOTEL. Reservations received thereafter
will be accepted by HOTEL only if space is available.  Valid name changes will be accepted until 72
hours prior to the arrival date.

 

HOTEL
OCCUPANCY TAX

 

Rates
provided to SUPPLIER are non-commissionable and do not reflect the twelve
percent (12%) county room tax, which is an additional charge.  Room occupancy tax is subject to change.

 

 

GROUPS

 

SUPPLIER
will fax a rooming list to HOTEL not later than fourteen (14) days in advance
of each group’s arrival.  The rooming
list shall be accompanied by the attached Group Booking Notice and provide the
following:  Arrival & Departure
information including flight times, number of rooms, guests’ names occupying
each room, group leader name and room type preference such as
smoking/non-smoking, king or two (2) queens.  However, room type is NOT guaranteed.

 

BAGGAGE

 

For
group arrivals of ten (10) or more rooms, a baggage handling fee at each
hotel may be charged per person to SUPPLIER by HOTEL at the following rates:

 

Bally’s:
$5.50

Caesars:
$6.50

Flamingo:
$7.00

Harrah’s
Las Vegas: $5.50

Imperial
Palace: $7.00

Paris:
$5.50

Rio:
$7.00

 

For
individual travelers or groups of less than ten (10) rooms, SUPPLIER will
not be charged a baggage handling service fee. 
The baggage handling fee is subject to change.  SUPPLIER will be advised in such event.

 

SUPPLIER
must indicate on its rooming list, by separate code, all group arrivals of ten (10) or
more rooms.  Group leader must supply a
baggage pull and departing bus time to the Bell Captain at least forty-eight
(48) hours prior to departure.

 

CHECK-IN
/ OUT

 

Operator
shall advise its customers that HOTEL check-in time is 4:00 p.m. and the
check-out time is 11:00 a.m.  Late
check-out may be available at the discretion of the HOTEL.

 

CANCELLATION
POLICY

 

SUPPLIER
guarantees the first night of all reservations, regardless of check-in
times.  SUPPLIER will be responsible for
payment of the first night room and tax charges for any room reservation
cancelled less than 72 hours in advance of the expected arrival date.

 

NO-SHOW
POLICY

 

SUPPLIER
will be responsible for payment of the first night room and tax charges for all
“no show” reservations.

 

ADDITIONAL
CHARGES

 

Rollaway
/ Cribs

 

Rollaway
and crib accommodations will be at an additional daily charge based on rates
currently in force by the HOTEL. This fee will be waived when the additional
person charge is applied.

 

Extra
Person

 

Rates
are for single or double occupancy only. An additional person rate of thirty dollars
($30.00) per person, per night will be charged to the hotel guest,
regardless of age. Maximum occupancy is four (4) persons per room.

 

Rates
are for single or double occupancy only.

 

GUIDE
ANIMALS / SEEING EYE DOGS / PET POLICY

 

All
Harrah’s properties allow guide animals / seeing eye dogs.  Property reserves the right to ask the nature
of the disability upon check-in.  Other
than guide animals / seeing eye dogs, pets are not allowed in the hotel.

 

27

 

INCIDENTAL
OBLIGATIONS

 

SUPPLIER
shall advise its guests that at the time of check-in, each individual guest
will be required to provide HOTEL with a valid credit card or cash deposit in
the amount of $100 per each day of guest stay if paying via credit card, or
$200 for the entire guest stay if paying via cash (the $200 cash deposit will
only activate in room movies and phone). 
If the guest fails to provide the requested credit card or cash deposit,
HOTEL will refuse to allow said guest to check into HOTEL.

 

UPGRADES

 

Any
requests by guests upon arrival for upgraded accommodations, which were not
previously arranged by SUPPLIER, will be subject to availability at the HOTEL’S
current upgrade charge.  The upgrade fee
will be the responsibility of the guest and the SUPPLIER will NOT be billed for
the upgrade charge.

 

PHOTO
IDENTIFICATION

 

SUPPLIER
shall advise its customers that at the time of check-in, each individual guest
will be required to provide HOTEL with valid photo identification before guest
will be allowed to check into HOTEL.  If
the guest fails to provide the requested photo identification, or in the event
the photo identification does not match the name on the reservation, HOTEL
reserves the right to refuse to allow said guest to check into HOTEL.

 

SUPPLIER
understands that one (1) guest per room must be at least twenty-one (21)
years of age to check in.

 

28

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