Document:

ATA Holdings, Inc. 8-K exhibit 10.1

    Exhibit 10.1

      SEVERANCE
        AGREEMENT 

      

      

      J.
        George
        Mikelsons (‘Mikelsons”) and ATA Holdings Corp. (“ATA Holdings”), together with
        ATA Holdings’ subsidiaries ATA Airlines, Inc. (“ATA Airlines”), Ambassadair
        Travel Club, Inc., ATA Leisure Corp., Amber Travel, Inc., American Trans
        Air
        Execujet, Inc., ATA Cargo, Inc., and C8 Airlines, Inc. (collectively, ATA
        Airlines and the other subsidiaries of ATA Holdings identified above shall
        be
        referred to as the “ATA Subsidiaries” and ATA Holdings and the ATA Subsidiaries
        collectively shall be referred to as the “ATA Group”), hereby execute this
        Severance Agreement (“Agreement”) as of the 31st
        of
        August, 2005 and agree as follows:

      

      

      
        	
                1.

              	
                Employment
                  History, Retirement and Termination.
                  Mikelsons has been employed by ATA Holdings or ATA Airlines or
                  their
                  predecessor entities and their affiliated entities respectively
                  since
                  1973. Mikelsons wishes to retire. This Agreement provides for (i)
                  the
                  termination of Mikelsons's employment as President and Chief Executive
                  Officer of ATA Holdings, (ii) Mikelsons’ resignation as an officer and/or
                  as the sole member of the Board of Directors of each member of
                  the ATA
                  Subsidiaries, respectively, and (iii) the retirement and resignation
                  of
                  Mikelsons from the position of Chairman of the Board of ATA Holdings.
                  Mikelsons hereby retires from and resigns, effective as of 5:00p.m.,
                  Indianapolis time, on August 31, 2005 (the "Severance Date"), as
                  (i) the
                  President and Chief Executive Officer of ATA Holdings and (ii)
                  an officer
                  and/or member of the Board of Directors of each member of the ATA
                  Subsidiaries, with Mikelsons being relieved of all employment duties
                  and
                  performance obligations effective as of the Severance Date. After
                  the
                  Severance Date, Mikelsons
                  shall continue to serve as non-executive Chairman of the Board
                  of ATA
                  Holdings until the earlier of the "Effective Date" (as defined
                  therein) of
                  a confirmed plan of reorganization of the ATA Group or December
                  31, 2005
                  (“Chair Retirement Date”), and in such capacity as non-executive Chairman
                  of the Board, Mikelsons shall not be an employee of ATA Holdings.
                  During
                  the period that Mikelsons is serving as non-executive Chairman
                  of the
                  Board, he shall be entitled to and receive the same rights and
                  privileges
                  as all other members of the Board of Directors of ATA Holdings,
                  including,
                  but not limited to, and to the extent such exist, directors fees
                  and
                  indemnification and coverage under the directors and officers liability
                  insurance policies of each member of the ATA Group, provided that
                  any such
                  directors fees may be no more than any other director receives
                  in the same
                  period and in no event exceed the aggregate of $10,000. On the
                  Chair
                  Retirement Date, Mikelsons shall retire from his position as Chairman
                  of
                  the Board of ATA Holdings and resign from such Board. 

              

      

      

      

      
        	
                2.

              	
                Authority.
                  ATA
                  Holdings and each member of the ATA Subsidiaries, respectively,
                  is the
                  subject of a case under chapter 11 of the United States Bankruptcy
                  Code
                  pending in the United States Bankruptcy Court, Southern District
                  of
                  Indiana, Indianapolis Division (the “Bankruptcy Court”), jointly
                  administered under case number 04-19866. The parties agree and
                  acknowledge
                  that this Agreement is being entered into pursuant to an Order
                  of the
                  Bankruptcy Court dated August 25, 2005, approving generally the
                  terms of
                  this Agreement (the “Order”) and (ii) the counsel for the Official
                  Committee of Unsecured Creditors appointed in the chapter 11 cases
                  of the
                  ATA Group, shall have the right to review the terms hereof to confirm
                  that
                  such terms are consistent with the Order.

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                3.

              	
                Voluntary
                  Agreement.
                  Mikelsons, ATA Holdings and each of the ATA Subsidiaries, respectively,
                  desire to resolve any and all claims and disputes or issues which
                  have
                  arisen or could arise concerning Mikelsons's employment with or
                  service
                  for the ATA Group and the termination of that employment and service.
                  To
                  accomplish such a resolution, they have voluntarily entered into
                  this
                  Agreement. Each member of the ATA Group, respectively, expressly
                  agrees
                  and acknowledges that its obligations,
                  including, without limitation, the obligations to pay the Severance
                  Benefit and the Non-Compete Payments, as each is defined herein,
                  shall in
                  no way depend on the continued existence, operation or solvency
                  of any
                  other member of the ATA Group.

              

      

      

      
        	
                4.

              	
                Salary
                  and Vacation Benefits.
                  The ATA Group will pay Mikelsons any and all salary payments and
                  any
                  earned, but unused, vacation benefits ("Vacation Payment") to which
                  Mikelsons is entitled up to and including the Severance Date, less
                  all
                  customary payroll withholdings, including deductions for federal,
                  state
                  and local taxes. The Vacation Payment, if any, will be paid to
                  Mikelsons
                  on the first regular payroll date following the Severance
                  Date.

              

      

      

      
        	
                5.

              	
                Confirmation
                  of Receipt of Salary and Benefits.
                  Mikelsons has received or will receive all wages, salary payments
                  and
                  earned, but unused, vacation benefits and bonuses which were or
                  are due
                  and payable to Mikelsons by any member of the ATA Group on or prior
                  to the
                  Severance Date or the first pay date after the Severance Date.
                  Except for
                  the salary payments and Vacation Payment provided for in Section
                  4 of this
                  Agreement and the additional compensation and considerations provided
                  for
                  in Section 6 of this Agreement, Mikelsons shall not be entitled
                  to payment
                  by any member of the ATA Group of any additional amounts for wages,
                  salary, vacation benefits or
                  bonuses.

              

      

      

      
        	
                6.

              	
                Additional
                  Considerations.
                  In
                  consideration of Mikelsons’ service to the ATA Group and execution of and
                  compliance with the terms of this Agreement, and in full payment
                  of any
                  remaining obligations of the ATA Group to Mikelsons (other than
                  as set
                  forth in or contemplated by this Agreement, the Non-Compete Agreement
                  (as
                  hereinafter defined) and the respective Articles of Incorporation
                  and
                  by-laws of each member of the ATA Group), the ATA Group agrees
                  to provide
                  to Mikelsons, and Mikelsons agrees to accept, the following additional
                  payments and benefits:

              

      

      

      a. 
        As of
        the Severance Date, the ATA Group shall pay to Mikelsons severance pay (the
        “Severance Benefit”) in the aggregate gross sum of $650,000, less the amount of
        applicable federal and state withholding and employment taxes, payable on
        fixed
        bi-weekly terms over a period of one year beginning two weeks following the
        Severance Date (the "Severance Period"). The Severance Benefit shall be deemed
        fully earned on the Severance Date and shall not be affected in the event
        of
        Mikelsons’ death prior to the end of the Severance Period and shall continue to
        be paid to Mikelsons’ designees (however such designees may be designated,
        whether by will, trust or testamentary or other instrument) in accordance
        with
        the above payment schedule until paid in full. 

       

      
        
          
          

        

        
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      b. Concurrent
        with the execution of this Agreement, Mikelsons shall execute an appropriate
        confidentiality and non-competition agreement (“Non-Compete Agreement”) for a
        two-year period to commence at the end of the Severance Period (the "Non-Compete
        Term"). As consideration to Mikelsons for the Non-Compete Agreement, ATA
        Holdings, ATA Airlines and each other member of the ATA Group shall pay to
        Mikelsons the annual aggregate gross sum of $200,000, payable quarterly
        (collectively, the "Non-Compete Payments") for each year of the Non-Compete
        Term. The Non-Compete Payments shall be paid to Mikelsons, in accordance
        with
        and subject to the terms of the Non-Compete Agreement, beginning September
        1,
        2006 and on each December 1, March 1, June 1 and September 1 thereafter until
        paid in full. All Non-Compete Payments shall be paid as a credit against
        the JGM
        Obligations (as defined in Section 12 hereof). The Non-Compete
        Payments shall be deemed fully earned in the event of Mikelsons’ death during
        the Non-Compete Term, with any remaining Non-Compete Payments owed to Mikelsons
        to be aggregated and applied to the JGM Obligations (as hereinafter defined).
        

      

      c. Mikelsons
        and his spouse, Muriel Mikelsons (“Mrs. Mikelsons”) shall receive lifetime
        positive space travel on each
        airline operated by any member of the ATA Group and successors thereto. No
        member of the ATA Group shall have any liability to reimburse Mikelsons for
        income or other taxes arising from, or payable by, Mikelsons or Mrs. Mikelsons
        by reason of this benefit or its utilization. Mikelsons agrees that he will
        not
        resell or permit to be resold by Mrs. Mikelsons any flight passes or tickets
        issued pursuant to this benefit. 

      

          d. From
        and
        after the Severance Date, upon their respective requests, Mikelsons and Mrs.
        Mikelsons may receive a distribution of their vested 401(k) plan benefits,
        respectively, subject to the terms of such plan.

      

      e. After
        the
        Severance Date and pursuant to its terms, Mikelsons at his expense may convert
        the MetLife group term life insurance policy provided by one or more members
        of
        the ATA Group into a personal policy;

      

      f. After
        the
        Severance Date, the ATA Group agrees to continue to include Mikelsons and
        Mrs.
        Mikelsons among the individuals covered in any health insurance plans offered
        by
        the ATA Group at their requests respectively, provided that (i) the
        inclusion of Mikelsons and Mrs. Mikelsons, respectively, is permissible under
        such plans; (ii) Mikelsons and Mrs. Mikelsons, respectively, reimburse
        the
        ATA Group no less frequently than monthly for the employee cost of such
        coverage; (iii) to the extent that Mikelsons may be covered, such
        inclusion
        on the ATA Group’s health insurance plans shall not extend after the third
        anniversary of the Severance Date; and (iv) to the extent Mrs. Mikelsons
        may be covered, such inclusion in the ATA Group’s health insurance plans shall
        not extend beyond Mrs. Mikelsons' 65th birthday. If and to the extent that
        it is
        or becomes impermissible to include Mikelsons or Mrs. Mikelsons among
        individuals covered by the ATA Group’s health insurance plan, the ATA Group
        shall not be deemed in default of this undertaking and shall not have any
        obligation to pay all or any the costs of Mikelsons’ or Mrs. Mikelsons’
        alternative coverages.

       

       

      
        
          
          

        

        
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          g. After
        the
        Severance Date, all as more fully set forth in a separate lease agreement,
        Mikelsons shall be permitted continued use through December 31, 2007 of the
        2005
        Jeep Grand Cherokee owned by ATA Airlines, and shall have no obligation to
        reimburse ATA Airlines for such use. Mikelsons shall be solely responsible
        for
        all costs of insurance, licensing, taxes, gas, maintenance, repairs and any
        other miscellaneous expenses typically associated with the ownership or
        operation of a vehicle.

      

      
        	
                7.

              	
                Confidential
                  and Proprietary Information.
                  Mikelsons recognizes Mikelsons's continuing responsibilities to
                  each
                  member of the ATA Group with respect to confidential and proprietary
                  information and material. Mikelsons therefore covenants and agrees
                  that:

              

      

      

      
        	 	
                a.

              	
                prior
                  to the Severance Date, Mikelsons has not disclosed, outside the
                  ordinary
                  course of business to others not employed by, or a director or
                  agent of, a
                  member of the ATA Group, any
                  proprietary, confidential or competitively-sensitive information
                  and
                  materials which are the property of or relate to the ATA Group
                  or the
                  business of any member of the ATA Group, including, without limitation,
                  (i) all information and materials, whether or not reduced to writing
                  or
                  other tangible medium of expression, created by, provided to or
                  otherwise
                  disclosed to Mikelsons in connection with Mikelsons’ employment with any
                  member of the ATA Group or continued interim service as the non-executive
                  Chairman of the Board of ATA Holdings Corp. (excepting only information
                  and materials already known by the general public); (ii) trade
                  secrets,
                  (iii) the names and addresses of any member of the ATA Group's
                  past,
                  present or prospective customers or business contacts, and all
                  information
                  relating to such customers or business contacts, regardless of
                  whether
                  such information was supplied or produced by any member of the
                  ATA Group
                  or such customers or business contacts; (iv) the terms of employment
                  between any member of the ATA Group and its employees; (v) proprietary
                  information regarding or with respect to any member of the ATA
                  Group’s
                  services, products, prices, pricing methods, fees, costs, processes,
                  training materials, financing sources, marketing plans or techniques,
                  business plans, operational strategies and tactical plans; and
                  (vi) the
                  financial condition and operating results of any member of the
                  ATA
                  Group
                  (all such trade secrets and confidential and/or proprietary information
                  of
                  ATA Holdings or any other member of the ATA Group shall be hereinafter
                  referred to collectively as the "Confidential
                  Information");

              

      

      

      
        	 	
                b.

              	
                subsequent
                  to the Severance Date, Mikelsons will not, without prior written
                  consent
                  from ATA Holdings, use or disclose to anyone any of the Confidential
                  Information; 

              

      

       

       

      
        
          
          

        

        
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                c.

              	
                Mikelsons
                  has returned, or will return, prior to September 30, 2005, to ATA
                  Holdings
                  all originals and all copies (including all computer or other
                  electronically-stored data) of all materials of any kind whatsoever
                  constituting or containing any of the Confidential Information
                  which are
                  or were in Mikelsons’ possession or custody or under Mikelsons’ control
                  during Mikelsons’ employment and up to and including the Severance Date;
                  that Mikelsons has not given any such materials, either directly
                  or
                  indirectly, to others not in the employ or a director or agent
                  of a member
                  of the ATA Group without prior written consent of a member of the
                  ATA
                  Group; and that in the future Mikelsons will not obtain or give
                  any such
                  materials, either directly or indirectly, to others not in the
                  employ or a
                  director or agent of a member of the ATA Group without ATA Holdings
                  prior
                  written consent; and 

              

      

      

      
        	 	
                d.

              	
                in
                  conjunction with maintaining strict confidentiality as set forth
                  herein,
                  in
                  the event that Mikelsons is requested by oral or written order,
                  inquiry or
                  request for information or documents in legal proceedings, government
                  investigations, interrogatories, subpoenas or any other similar
                  process to
                  disclose any Confidential Information, he agrees that he will provide
                  notice of any such order, inquiry or request to ATA Holdings so
                  that it
                  may seek an appropriate protective order, or by mutual written
                  agreement
                  waive compliance with the provisions of this Agreement. Finally,
                  Mikelsons shall not make or publish disparaging statements concerning
                  ATA
                  Holdings or any other member of the ATA Group, their respective
                  products
                  or services, or current or former officers, directors, attorneys,
                  agents
                  or employees. 

              

      

      

      
        	
                8.

              	
                Company
                  Property.
                  Mikelsons represents and covenants that Mikelsons has returned,
                  or will
                  return prior to September 30, 2005, all other property of any member
                  of
                  the ATA Group, including but not limited to keys, credit cards,
                  files,
                  personal computers, documents and any other such property of any
                  member of
                  the ATA Group in Mikelsons's possession or custody at Mikelsons's
                  office,
                  personal residence, or elsewhere, with the exception of the vehicle
                  contemplated by Section 6(g) hereof and such property or materials
                  Mikelsons reasonably desires to retain in service as the non-executive
                  Chairman of the Board of ATA Holdings up to and through the Chair
                  Retirement Date, which property Mikelsons will return to ATA Holdings
                  by
                  not later than the Chair Retirement Date. No later than September
                  30,
                  2005, Mikelsons shall remove from the ATA Group’s offices or facilities
                  Mikelsons’ personal assets, furniture and any other personal property
                  located at such offices or
                  facilities

              

      

      

      
        	
                9.

              	
                Cooperation.
                  If
                  it is necessary for any member of the ATA Group to call upon Mikelsons
                  to
                  provide evidence in any judicial, administrative or other proceedings
                  occurring during the Severance Period, Mikelsons agrees to cooperate
                  in
                  making himself available for such proceedings, and the ATA Group
                  agrees to
                  reimburse Mikelsons’ reasonable out-of-pocket expenses for such matters.
                  If it is necessary for any member of the ATA Group to call upon
                  Mikelsons
                  to provide evidence in any judicial, administrative or other proceedings
                  occurring subsequent to the Severance Period, Mikelsons agrees
                  to
                  cooperate in making himself reasonably available for such proceedings,
                  and
                  the ATA Group agrees to pay Mikelsons reasonable compensation for
                  his time
                  (at a rate to be mutually agreed upon by the ATA Group and Mikelsons
                  at
                  such time) and to reimburse Mikelsons’ reasonable out-of-pocket expenses
                  for such matters. 

              

      

       

       

      
        
          
          

        

        
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                10.

              	
                Mutual
                  Release. 

              

      

      

      
        	a.  	
                Mikelsons
                  hereby covenants not to sue, releases and forever discharges ATA
                  Holdings,
                  ATA Airlines and each other member of the ATA Group, and the officers,
                  directors, employees, agents, successors and assigns of each member
                  of the
                  ATA Group from any and all claims, liabilities, demands, actions
                  and
                  causes of action of every nature, kind and character, known and
                  unknown,
                  which have or may have arisen or accrued to Mikelsons by reason
                  of
                  Mikelsons’ employment by or service for ATA Holdings or any other member
                  of the ATA Group, including, without limitation, any and all claims
                  that
                  the retirement and termination of Mikelsons’ employment and/or resignation
                  of Mikelsons’ board directorships resulted from a violation or breach of
                  any federal, state, or local statute, regulation, ordinance, or
                  common
                  law, or any contract, any charges or claims regarding possible
                  discrimination (based on age, race, national origin, ethnic background,
                  sex, disability, religion), wrongful termination, or express or
                  implied
                  contract, any and all claims for salary, vacation pay, fringe benefits,
                  bonuses, severance pay, profit sharing benefits, costs and attorneys'
                  fees
                  and any and all claims for other compensation, benefits, damages
                  or fees,
                  whether or not any of such claims have been or could have been
                  asserted by
                  Mikelsons at any time up to and including the Chair Retirement
                  Date,
                  excepting only: (1) any claims, liabilities, demands, actions
                  and
                  causes of action which may arise under this Agreement or the Non-Compete
                  Agreement as the result of the failure of any member of the ATA
                  Group to
                  perform under, or any breach of, this Agreement or the Non-Compete
                  Agreement; (2) any claims for indemnification which may arise under
                  the
                  Articles of Incorporation or by-laws of any member of the ATA Group;
                  (3) any outstanding and properly documented expense reports
                  that have
                  not been reimbursed as of the Severance Date, or with respect to
                  outstanding and properly documented expense reports in connection
                  with
                  Mikelsons’ continuing service as non-executive Chairman of the Board of
                  ATA Holdings, reimbursed as of the Chair Retirement Date; (4) any
                  benefits claims (not including any bonus or bonus claims) outstanding
                  on
                  the Severance Date that have not been reimbursed (consistent with
                  the
                  provisions of the applicable benefits plans); and (5) all
                  other
                  amounts to which Mikelsons is entitled under any retirement savings
                  plan
                  administered by any member of the ATA Group. Mikelsons agrees to
                  indemnify
                  and hold harmless each member of the ATA Group, and the officers,
                  directors, employees, agents, successors and assigns of each member
                  of the
                  ATA Group, from and against any and all claims, demands, damages,
                  liabilities, obligations, costs, expenses, attorneys fees', actions,
                  causes of action and/or claims for relief arising from any demand,
                  claim
                  or action released herein or in connection with any lawsuit, action
                  or
                  other proceeding initiated or prosecuted contrary to the provisions
                  of
                  this Agreement.

              

      

       

      
        
          
          

        

        
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      Further,
        with particularity with respect to any claim based on alleged age
        discrimination: (i) Mikelsons acknowledges that the ATA Group has advised
        him
        that his employment with the ATA Group was covered by the Age Discrimination
        in
        Employment Act of 1967 (29 U.S.C. § 621 et. seq.),
        as
        amended (commonly referred to as the “ADEA”); (ii) Mikelsons acknowledges that
        the ATA Group has advised him by this writing to consult with an attorney
        prior
        to signing this Agreement and that he has done so; (iii) Mikelsons acknowledges
        in exchange for this waiver he is receiving consideration beyond what he
        would
        otherwise be entitled to under any contract or employee benefit plan; (iv)
        Mikelsons acknowledges that the ATA Group has advised him that under the
        ADEA he
        has up to twenty-one (21) days to consider and accept this Agreement by signing
        and returning this Agreement to the ATA Group; and (v) Mikelsons acknowledges
        that the ATA Group has advised him that for a period of seven (7) days following
        Mikelsons’ signing of this Agreement, Mikelsons’ may revoke this Agreement by
        written notice to the ATA Group. This Agreement will not become binding and
        enforceable until the 7-day revocation period has expired.

      

      b. Each
        member of the ATA Group, respectively, hereby covenants not to sue, releases
        and
        forever discharges Mikelsons and his heirs, successors and assigns from any
        and
        all claims, liabilities, demands, actions and causes of action of every nature,
        kind and character, known and unknown, costs and attorneys' fees, which have
        or
        may have arisen or accrued to any member of the ATA Group in connection with
        any
        act or omission relating to Mikelsons’ employment by or service for any member
        of the ATA Group, including, without limitation, his services as a fiduciary
        in
        connection with any employee benefit plan, and Mikelsons’ service as a member of
        the board of directors of any member of the ATA Group, whether or not any
        of
        such claims have been or could have been asserted by any or each member of
        the
        ATA Group at any time up to and including the Chair Retirement Date, excepting
        only (1) any claims, liabilities, demands, actions and causes of action
        which may arise as the result of the failure of Mikelsons to perform under,
        or
        any breach of, this Agreement or the Non-Compete Agreement and (2) the JGM
        Obligations. Each member of the ATA Group, respectively, agrees to indemnify
        and
        hold harmless Mikelsons and his heirs, successors and assigns, from and against
        any and all claims, demands, damages, liabilities, obligations, costs, expenses,
        attorneys fees', actions, causes of action and/or claims for relief arising
        from
        any demand, claim or action released herein or in connection with any lawsuit,
        action or other proceeding initiated or prosecuted contrary to the provisions
        of
        this Agreement.

       

            c. Mikelsons
        hereby represents and covenants that he (i) has not, on or prior to the date
        of
        this Agreement, transferred or assigned any claim, demand, action or cause
        of
        action against any member of the ATA Group that he has released and discharged
        under Section 10(a) hereof and (ii) will not, subsequent to the date of this
        Agreement, transfer or assign any claim, demand, action or cause of action
        against any member of the ATA Group that he has released and discharged under
        Section 10(a) hereof. Each member of the ATA Group, respectively, hereby
        represents and covenants that none of them (i) has, on or prior to the date
        of
        this Agreement, transferred or assigned any claim, demand, action or cause
        of
        action against Mikelsons that it has released and discharged under Section
        10(b)
        hereof and (ii) will, subsequent to the date of this Agreement, transfer
        or
        assign any claim, demand, action or cause of action against Mikelsons that
        it
        has released and discharged under Section 10(b) hereof.

      

      
        
          
          

        

        
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        	11.  	
                Continuing
                  Indemnification.
                  

              

      

       

      a. Each
        member of the ATA Group shall indemnify and reimburse Mikelsons against all
        Liability and Expense
        that may be incurred for
        all
        acts or omissions of Mikelsons in his capacity as an officer, director or
        employee of each member of the ATA Group up to and through the Chair Retirement
        Date
        for, in
        connection with, or resulting from any Claim
        to the
        fullest extent authorized or permitted by law, as the same exists or may
        hereafter be amended (but in the case of any such amendment,
        only to
        the extent that such amendment permits the ATA Group to provide broader
        indemnification rights than such law permitted the ATA Group to provide prior
        to
        such amendment), or otherwise consistent with the public policy of the State
        of
        Indiana. In furtherance of the foregoing, and not by way of limitation,
        Mikelsons shall be indemnified and reimbursed by each member of the ATA Group
        against all Liability and reasonable Expense that may be incurred by him
        in
        connection with or resulting from any Claim, (1) if Mikelsons is Wholly
        Successful with respect to the Claim, or (2) if not Wholly Successful, then
        if
        Mikelsons is determined to have acted in good faith, in what he reasonably
        believed to be the best interests of the ATA Group or at least not opposed
        to
        its best interests and, in addition, with respect to any criminal claim is
        determined to have had reasonable cause to believe that his conduct was lawful
        or had no reasonable cause to believe that his conduct was unlawful. The
        termination of any Claim, by judgment, order, settlement (whether with or
        without court approval), or conviction or upon a plea of guilty or of nolo
        contendere, or its equivalent, shall not create a presumption that Mikelsons
        did
        not meet the standards of conduct set forth in clause (2) of this subsection
        (a). 

      

      b.
        The
        term "Claim" as used in this Section 11 shall include every pending, threatened,
        or completed claim, action, suit, or proceeding (including but not limited
        to
        arbitration, mediation or other form of alternative dispute resolution) and
        all
        appeals thereof (whether asserted or unasserted on the date of this Agreement,
        or brought by or in the right of any member of the ATA Group or otherwise),
        civil, criminal, administrative, or investigative, formal or informal, in
        which
        Mikelsons may become involved, as a party or otherwise: (1) by reason of
        his
        having been an officer, director employee, trustee or agent of any member
        of the
        ATA Group prior to the Chair Retirement Date, or (2) by reason of any action
        taken or not taken by him in his capacity as an officer, director, employee,
        fiduciary or agent of or for any member of the ATA Group prior to the Chair
        Retirement Date or arising out of his status as such.

        

          
        c. The terms
        "Liability" and "Expense" as used in this Section 11 shall include, but
 shall
        not
        be limited to, counsel fees, expert and investigation costs and disbursements
        and  amounts
        of judgments, fines,  or
        penalties against (including excise taxes assessed with  respect
        to an employee benefit plan), and amounts paid in settlement by or on behalf
        of
 Mikelsons.

      

          
        d. The term
        "Wholly Successful" as used in this Section 11 shall mean (1)  termination
        of any Claim, whether on the merits or otherwise, against Mikelsons in
question
        without any finding of liability or guilt against him, (2) approval by a
        court,
 with
        knowledge of the indemnity herein provided, of a settlement of any Claim,
        or (3)
        the  expiration
        of a reasonable period of time after the making or threatened making of any
         Claim
        without the institution of the same, without any payment or promise made
        to
 induce
        a
        settlement.

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      e. The
        rights of indemnification and reimbursement provided under this Section 11
        are
        not exclusive and shall be in addition to any rights to which Mikelsons may
        otherwise be entitled by contract, vote of directors not a party to the Claim,
        vote of shareholders, the Articles of Incorporation or by-laws of any member
        of
        the ATA Group or as a matter of law. In the event of any conflict in any
        indemnification or reimbursement provided to Mikelsons by contract, director
        or
        shareholder vote, the Articles of Incorporation or by-laws of any member
        of the
        ATA Group, as a matter of law or this Agreement, Mikelsons shall be entitled
        to
        the broadest indemnification and reimbursement provided by any of the
        foregoing.

      

      f. All
        obligations of each member of the ATA Group under this Section 11 shall survive
        the Severance Date and the termination of Mickelsons’ service in any capacity
        covered by this Section 11.

      

      

      
        	
                12.

              	
                Affirmation
                  of Indebtedness.
                  Mikelsons
                  acknowledges and affirms that (i) he is indebted to one or more
                  members of
                  the ATA Group as affirmed in that certain letter agreement, dated
                  as of
                  October 26, 2004 (the “JGM Debt Agreement”), in the initial principal
                  amount of Six Hundred Fifty-three Thousand Two Hundred Twenty-five
                  Dollars
                  and Nine Cents($653,225.09) (the “JGM Obligations”), and (ii) nothing
                  herein shall alter
                  the repayment terms or obligations of Mikelsons with respect to
                  the JGM
                  Obligations, except as contemplated by the payment of the Non-Compete
                  Payments as credits to be applied to the JGM Obligations. The ATA
                  Group
                  represents and agrees that all payments under the JGM Debt Agreement
                  have
                  been made as agreed prior to the date of this Agreement and that,
                  as of
                  July 31, 2005, the outstanding principal balance of the JGM Obligations
                  is
                  $612,285.

              

      

      

      13.     
        Directors
        and Officers Liability Insurance. Each
        member of the ATA Group and its successors and assigns shall continue to
        extend
        to and cover Mikelsons under and within its directors and officers liability
        insurance policies, respectively, for so long and on the same terms as such
        policies are maintained for current directors and officers, for all acts
        and
        omissions up
        to and
        through the Chair Retirement Date
        of
        Mikelsons in
        his
        capacity as a director or officer of
        such
        member of the ATA Group, consistent with and to
        the
        fullest extent authorized or permitted by its
        Articles
        of Incorporation and by-laws. 

      

      
        	
                14.

              	
                Severability.
                  Should any provision of this Agreement be declared or determined
                  by any
                  court of competent jurisdiction to be illegal, invalid or unenforceable,
                  the legality, validity and enforceability of the remaining parts,
                  terms or
                  provisions shall not be affected thereby and said illegal, unenforceable
                  or invalid part, term or provision shall be deemed not to be a
                  part of
                  this Agreement. Should any particular confidentiality covenant,
                  provision
                  or clause of this Agreement be held unreasonable or contrary to
                  public
                  policy for any reason, including, without limitation, the time
                  period,
                  geographic area and/or scope of activity covered by any confidentiality
                  covenant, provision or clause, Mikelsons and each member of the
                  ATA Group
                  acknowledge and agree that such covenant, provision or clause shall
                  automatically be deemed modified such that the contested covenant,
                  provision or clause will have the closest effect permitted by applicable
                  law to the original form and shall be given effect and enforced
                  as so
                  modified to whatever extent would be reasonable and/or enforceable
                  under
                  applicable law.

              

      

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      
        	
                15.

              	
                Mikelsons
                  Acknowledgment.
                  Mikelsons represents and acknowledges that in executing this Agreement,
                  Mikelsons does not rely and has not relied upon any representation
                  or
                  statement with regard to the subject matter, basis or effect of
                  this
                  Agreement, other than those specifically stated in this
                  Agreement.

              

      

      

      
        	
                16.

              	
                Entire
                  Agreement.
                  Except for the Non-Compete and Confidentiality Agreement provided
                  for in
                  Section 6.b. hereof and the lease provided for in Section 6.g.
                  hereof,
                  this Agreement sets forth the entire agreement between the parties
                  hereto,
                  and fully supersedes any and all prior agreements or understandings,
                  written or oral, between the parties hereto pertaining to the subject
                  matter hereof. It may be modified only by the agreement of the
                  parties
                  hereto memorialized in writing and executed by each of
                  them.

              

      

      

      
        	
                17.

              	
                Amendment;
                  Waiver; Successors.
                  This Agreement may not be modified, amended or waived in any manner
                  except
                  by a written document executed by the ATA Group and Mikelsons,
                  with the
                  approval of the Bankruptcy Court to the extent required. The waiver
                  by
                  either party of compliance with any provision of this Agreement
                  by the
                  other party shall not operate or be construed as a waiver of any
                  other
                  provision of this Agreement (whether or not similar), or a continuing
                  waiver or a waiver of any subsequent breach by such party of a
                  provision
                  of this Agreement. This Agreement and the covenants herein shall
                  extend to
                  and inure to the benefit of and shall be binding upon the legal
                  representatives, heirs, successors and assigns of Mikelsons and
                  the legal
                  representatives, successors and assigns of the ATA Group. Further,
                  the parties agree that this Agreement shall be incorporated into,
                  and
                  assumed as part of, any plan of reorganization confirmed in any
                  of the
                  pending chapter 11 cases of the members of the ATA Group.

              

      

      

      
        	
                18.

              	
                Governing
                  Law and Forum. Mikelsons
                  acknowledges and agrees that the State of Indiana has a substantial
                  connection with this Agreement. This Agreement shall therefore
                  be governed
                  by and construed according to the internal laws of the State of
                  Indiana,
                  without regard to conflict of law principles. The parties further
                  agree
                  that any disputes arising under this Agreement and/or any action
                  brought
                  to enforce this Agreement may be brought in a state court of competent
                  jurisdiction in Marion County, Indiana, or in the federal court
                  for the
                  Southern District of Indiana, and the parties consent to personal
                  jurisdiction of such courts and waive any defense of forum
                  non-conveniens.

              

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF, Mikelsons and each member of the ATA Group have executed
        this
        Agreement on the date(s) indicated below.

      ATA
        Holdings Corp

      By:
        /s/ Brian T. Hunt,  Senior Vice President and General Counsel
        (Title)

      Dated:
        August 31, 2005

      

      ATA
        Airlines, Inc. 

      By:
        /s/ Brian T. Hunt,  Senior Vice President and General Counsel
        (Title)

      Dated:
        August 31, 2005

      

      Ambassadair
        Travel Club, Inc.

      By:
        /s/ Brian T. Hunt,  Senior Vice President and General Counsel
        (Title)

      Dated:
        August 31, 2005

      

      ATA
        Leisure Corp.

      By:
        /s/ Brian T. Hunt,  Senior Vice President and General Counsel 
        (Title)

      Dated:
        August 31, 2005

      

      Amber
        Travel, Inc.

      By:
        /s/ Brian T. Hunt,  Senior Vice President and General Counsel
        (Title)

      Dated:
        August 31, 2005

      

      American
        Trans Air Execujet, Inc.

      By:
        /s/ Brian T. Hunt,  Senior Vice President and General Counsel 
        (Title)

      Dated:
        August 31, 2005

      

      ATA
        Cargo, Inc.

      By:
        /s/ Brian T. Hunt,  Senior Vice President and General Counsel
        (Title)

      Dated:
        August 31, 2005

      

      C8
        Airline, Inc.

      By:
        /s/ Brian T. Hunt,  Senior Vice President and General Counsel
        (Title)

      Dated:
        August 31, 2005

      

      By: 
        /s/ J. George Mikelsons

      J.
        George
        Mikelsons       

      Date:
        August 31, 2005

       

       

      

      
        
          
          

        

        
          11ATA Holdings, Inc. 8-K exhibit 10.2

    Exhibit 10.2

      NON-COMPETITION
        AND CONFIDENTIALITY AGREEMENT

      

      J.
        George
        Mikelsons ("Mikelsons") and ATA Holdings Corp. ("ATA Holdings"), together
        with
        ATA Holdings’ subsidiaries ATA Airlines, Inc. (“ATA Airlines”), Ambassadair
        Travel Club, Inc., ATA Leisure Corp., Amber Travel, Inc., American Trans
        Air
        Execujet, Inc., ATA Cargo, Inc., and C8 Airlines, Inc. (collectively, ATA
        Airlines and the other subsidiaries of ATA Holdings identified above shall
        be
        referred to as the “ATA Subsidiaries” and ATA Holdings and the ATA Subsidiaries
        collectively shall be referred to as the “ATA Group”), hereby execute this
        Non-Competition and Confidentiality Agreement ("Agreement"), and enter into
        this
        Agreement effective as of the 31st
        of
        August, 2005. 

      

      In
        consideration of Mikelsons’ prior employment by the ATA Group and additional
        good and valuable consideration hereunder, Mikelsons and the ATA Group agree
        as
        follows:

      

      1. Definitions.
        For
        purposes of this Agreement, the following terms shall have the meanings set
        forth below:

      

      a. "Business"
        shall mean collectively the sale or provision of air carrier services
        certificated by the Federal Aviation Association or United States Department
        of
        Transportation, non-military charter and air taxi services, military charter
        services to the United States’ military, cargo services, travel agency services,
        travel club services, wet leasing or any other businesses conducted by any
        member of the ATA Group as such business of each member of the ATA Group
        existed
        at any time prior to or exists upon the Commencement Date of this Agreement.
        

      

      b. “Commencement
        Date” shall mean September 1, 2005.

      

      c. "Confidential
        Information" shall mean any proprietary, confidential or competitively-sensitive
        information and materials which are the property of or relate to the ATA
        Group
        or the Business of any member of the ATA Group. Confidential Information
        shall
        include without limitation all information and materials, whether or not
        reduced
        to writing or other tangible medium of expression, created by, provided to
        or
        otherwise disclosed to Mikelsons in connection with Mikelsons’ employment with
        any member of the ATA Group or continued interim service as the non-executive
        Chairman of the Board of ATA Holdings Corp. (excepting only information and
        materials already known by the general public), including without limitation
        (i)
        trade secrets, (ii) the names and addresses of any member of the ATA Group's
        past, present or prospective customers or business contacts, and all information
        relating to such customers or business contacts, regardless of whether such
        information was supplied or produced by any member of the ATA Group or such
        customers or business contacts; (iii) the terms of employment between any
        member
        of the ATA Group and its employees; (iv) proprietary information regarding
        or
        with respect to any member of the ATA Group’s services, products, prices,
        pricing methods, fees, costs, processes, training materials, financing sources,
        marketing plans or techniques, business plans, operational strategies and
        tactical plans; and (v) the financial condition and operating results of
        any
        member of the ATA Group.

      

      d. “Expiration
        Date” shall mean August 31, 2008.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      e. “Non-Compete
        Payments” shall mean the annual aggregate gross sum of $200,000, payable in each
        of the final two years of the Non-Compete Term (as defined herein). The parties
        agree and acknowledge that for the first twelve (12) months of the Non-Compete
        Term, Mikelsons shall receive certain severance payments from the ATA Group
        under that certain Severance Agreement dated August 31, 2005 between Mikelsons
        and each member of the ATA Group respectively (the “Severance Agreement”) and
        that such severance payments are additional consideration to Mikelsons for
        the
        agreements, covenants, obligations and restrictions under this Agreement.
        

      

      f. “Non-Compete
        Term” shall mean that thirty-six (36) month period beginning on the Commencement
        Date and extending through and ending on the Expiration Date.

      

      g. "Territory"
        shall mean (i) the geographic area of the continental United States plus
        the
        State of Hawaii plus any geographic area within a 100 mile radius of any
        destination in the world to which any member of the ATA Group has flown
        commercial airline passengers at any time prior to the Commencement Date;
        (ii)
        the geographic area of the continental United States plus the State of Hawaii
        plus any geographic area within a 50 mile radius of any destination in the
        world
        to which any member of the ATA Group has flown executive charter passengers
        within one year prior to the Commencement Date; (iii) the geographic area
        of the
        continental United States plus the State of Hawaii plus any geographic area
        within a 100 mile radius of any destination in the world to which any member
        of
        the ATA Group has flown United States’ military charters at any time prior to
        the Commencement Date; and (iv) any additional geographic areas in which
        any
        member of the ATA Group sold or solicited or marketed the sale of any aspect
        of
        its Business within one year prior to the Commencement Date. The parties
        acknowledge and agree that the Business of the ATA Group collectively is
        generally located at least within the Territory, extends throughout the
        Territory and is not limited to any particular region of the
        Territory.

      

      2. Authority. ATA
        Holdings and each member of the ATA Subsidiaries, respectively, is the subject
        of a case under chapter 11 of the United States Bankruptcy Code pending in
        the
        United States Bankruptcy Court, Southern District of Indiana, Indianapolis
        Division (the “Bankruptcy Court”), jointly administered under case number
        04-19866 (collectively, the “Bankruptcy Cases;” individually, a “Bankruptcy
        Case”). The
        parties agree and acknowledge that
        (i) this
        Agreement is
        being
        entered into pursuant to an Order of the Bankruptcy Court dated August 25,
        2005,
        approving generally the terms of this Agreement (the “Order”); and (ii) the
        counsel for the Official Committee of Unsecured Creditors appointed in the
        chapter 11 cases of the ATA Group, shall have the right to review the terms
        hereof to confirm that such terms are consistent with the Order. 

      

      

      3. Acknowledgments.
        Mikelsons
        acknowledges and agrees that in connection with Mikelsons’ employment with the
        members of the ATA Group, respectively, Mikelsons (a) directed, developed,
        received, participated and engaged in all proprietary information involving,
        concerning or relating to the Business, (b) established business relationships
        or had contact with the customers, prospective customers, regulatory agencies,
        airport authorities and others who do business with the ATA Group, and/or
        (c)
        had access to, generated or otherwise came into contact with or become aware
        of
        Confidential Information, including without limitation, Confidential Information
        concerning the operations of each member of the ATA Group, including the
        requirements, habits and/or preferences of the regulatory agencies, airport
        authorities and customers of each member of the ATA Group. Mikelsons therefore
        acknowledges and agrees to the restrictions set forth in Sections 4, 6 and
        7 of
        this Agreement are reasonably necessary to protect the legitimate business
        interests of the members of the ATA Group

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      4. Use;
        Confidentiality.
        Mikelsons acknowledges and agrees that Confidential Information is the property
        of the ATA Group and its customers, and that Mikelsons has no ownership rights
        in Confidential Information. Mikelsons (a) shall not directly or indirectly
        disclose, use or exploit any Confidential Information for Mikelsons’ own benefit
        or for the benefit of any person or entity, other than the ATA Group at any
        and
        all times up to and through the Expiration Date; and (b) shall hold Confidential
        Information in trust and confidence, and use all reasonable means to assure
        that
        it is not directly or indirectly disclosed to or copied by unauthorized persons
        or used in an unauthorized manner, at any and all times up to and through
        the
        Expiration Date.

       

      5. Disclosure;
        Assistance.
        To the
        extent that Mikelsons created or developed any Confidential Information during
        the course of Mikelsons’ employment with the ATA Group, Mikelsons agrees and
        acknowledges such Confidential Information is the sole and exclusive property
        of
        the ATA Group.

      

      6. Non-Competition.
          Mikelsons agrees commencing on the Commencement Date and
        up to and
        through the Expiration Date, to be subject to the following restrictions
        on
        competition:

      

      a. During
        the Non-Compete Term, Mikelsons (on Mikelsons’ own behalf or that of any other
        person or entity) shall not directly or indirectly own, manage, operate,
        control, invest in, lend to, acquire an interest in, or otherwise engage
        or
        participate in (whether as an employee, independent contractor, consultant,
        partner, shareholder, joint venturer, investor, or any other type of
        participant), or use or permit Mikelsons’ name to be used in, any business
        (including the sale of any product or service) which directly or indirectly
        competes with any Business of the ATA Group.

      

      b.
         During
        the Non-Compete Term, Mikelsons (on Mikelsons’ own behalf or that of any other
        person or entity) shall not within the Territory directly or indirectly own,
        manage, operate, control, invest in, lend to, acquire an interest in, or
        otherwise engage or participate in (whether as an employee, independent
        contractor, consultant, partner, shareholder, joint venturer, investor, or
        any
        other type of participant), or use or permit Mikelsons’ name to be used in, any
        business (including the sale of any product or service) which directly or
        indirectly competes with any Business of the ATA Group. 

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      c. 
        During
        the Non-Compete Term, Mikelsons (on Mikelsons’ own behalf or that of any other
        person or entity) shall not directly or indirectly own, manage, operate,
        control, invest in, lend to, acquire an interest in, or otherwise engage
        or
        participate in (whether as an employee, independent contractor, consultant,
        partner, shareholder, joint venturer, investor, or any other type of
        participant), or use or permit Mikelsons’ name to be used in, any business
        (including the sale of any product or service) which directly or indirectly
        competes with any FAA or DOT certificated air carrier operations, non-military
        charter and air taxi operations, military charter services to the United
        States’
        military, cargo services, travel agency services, travel club services, wet
        leasing or any other businesses conducted by any member of the ATA Group,
        as
        such exist on the Commencement Date or existed within twenty-four (24) months
        prior to the Commencement Date. 

      

      d. 
        During
        the Non-Compete Term, Mikelsons (on Mikelsons’ own behalf or that of any other
        person or entity) shall not directly or indirectly own, manage, operate,
        control, invest in, lend to, acquire an interest in, or otherwise engage
        or
        participate in (whether as an employee, independent contractor, consultant,
        partner, shareholder, joint venturer, investor, or any other type of
        participant), or use or permit Mikelsons’ name to be used in, any business
        (including the sale of any product or service) which competes with directly
        or
        indirectly any charter or commercial air carrier routes flown by any member
        of
        the ATA Group as such exist on the Commencement Date or existed within
        twenty-four (24) months prior to the Commencement Date.

      

      e. Notwithstanding
        the provisions of Sections 6a, 6b, 6c and 6d hereof, each member of the ATA
        Group agrees that at all times during the Non-Compete Term, Mikelsons shall
        be
        permitted to directly or indirectly own, manage, operate, control, invest
        in,
        lend to, acquire an interest in, or otherwise engage or participate in (whether
        as an employee, independent contractor, consultant, partner, shareholder,
        joint
        venturer, investor, or any other type of participant), or use or permit
        Mikelsons’ name to be used in connection with any certificated non-military
        charter or air taxi service that exclusively flies aircraft each of which
        holds
        no more than eighteen (18) passengers. 

      

      7. Non-Solicitation.
        During
        the Non-Compete Term, Mikelsons (on Mikelsons’ own behalf or that of any other
        person or entity) shall not directly or indirectly solicit, induce or influence
        any customer of any member of the ATA Group, any employee of any member of
        the
        ATA Group or any other person or entity who has an actual or prospective
        business or employment relationship with any member of the ATA Group to
        discontinue, reduce, reject or otherwise change in any manner adverse to
        the
        interests of the ATA Group the nature or extent of such relationship with
        the
        ATA Group.

       

      8. Non-Compete
        Payments.
        The
        Non-Compete Payments shall be paid quarterly to Mikelsons beginning September
        1,
        2006 and on each December 1, March 1, June 1 and September 1 thereafter until
        paid in full. All Non-Compete Payments shall be paid as a credit against
        the JGM
        Obligations (as defined below). The Non-Compete
        Payments shall be deemed fully earned in the event of Mikelsons’ death during
        the Non-Compete Term, with any remaining Non-Compete Payments owed to him
        to be
        applied to the JGM Obligations. Mikelsons
        acknowledges and affirms that (i) he is indebted to one or more members of
        the
        ATA Group, as affirmed in that certain letter agreement dated as of October
        26,
        2004 (the “JGM Debt Agreement”), in the initial principal amount of Six
        Hundred
        Fifty-three Thousand Two Hundred Twenty-five Dollars and Nine Cents($653,225.09)
        (the “JGM Obligations”), and (ii) nothing herein shall alter
        the
        repayment terms or obligations of Mikelsons with respect to the JGM Obligations,
        except as contemplated by the payment of the Non-Compete Payments as credits
        to
        be applied to the JGM Obligations. The ATA Group represents and agrees that
        all
        payments under the JGM Debt Agreement have been made as agreed prior to the
        date
        of this Agreement and that, as of July 31, 2005, the outstanding principal
        balance of the JGM Obligations is Six Hundred Twelve Thousand Two Hundred
        Twenty-five Dollars and No Cents ($612,285).
        Each
        member of the ATA Group, respectively, expressly agrees and acknowledges
        that
        the obligations
        of each member of the ATA Group under this Agreement shall in no way depend
        on
        the continued existence, operation or solvency of any other member of the
        ATA
        Group.

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      9. Breach
        of Agreement and Remedies.
        Mikelsons acknowledges and agrees that Mikelsons’ actual or threatened breach of
        this Agreement will cause or threaten irreparable injury to the ATA Group
        that
        cannot adequately be measured in money damages. The ATA Group shall therefore
        be
        entitled to obtain injunctive relief with respect to any such actual or
        threatened breach by Mikelsons in addition to and not in lieu of any other
        available remedies. Mikelsons shall also pay any and all costs, damages and
        other expenses, including without limitation all attorneys' fees, witness
        fees
        and other legal expenses which are incurred by the ATA Group in enforcing
        this
        Agreement

      

      10. Entire
        Agreement.
        Except
        for the Severance Agreement, this Agreement sets forth the entire agreement
        between the parties hereto, and fully supersedes any and all prior agreements
        or
        understandings, written or oral, between the parties hereto pertaining to
        the
        subject matter of this Agreement. It may be modified only by the agreement
        of
        the parties hereto memorialized in writing and executed by each of
        them.

      

      11. Other
        Agreements.
        Mikelsons represents and warrants to the ATA Group that Mikelsons’ agreements
        herein do not breach, violate, interfere with or otherwise conflict with
        any
        oral or written agreement between Mikelsons and any other person or entity,
        including without limitation non-competition and/or non-disclosure provisions
        in
        any such agreement. Mikelsons shall indemnify, defend and hold harmless the
        ATA
        Group and all of its officers, directors, shareholders, employees and agents
        against any and all claims, damages, losses and expenses (including without
        limitation attorneys' fees) incurred by the ATA Group in connection with
        Mikelsons’ breach of this representation and warranty.

      

      12. Severability. Should
        any provision of this Agreement be declared or determined by any court of
        competent jurisdiction to be illegal, invalid or unenforceable, the legality,
        validity and enforceability of the remaining parts, terms or provisions shall
        not be affected thereby and said illegal, unenforceable or invalid part,
        term or
        provision shall be deemed
        not to
        be a part of this Agreement. Should any particular confidentiality covenant,
        provision or clause of this Agreement be held unreasonable or contrary to
        public
        policy for any reason, including, without limitation, the time period,
        geographic area and/or scope of activity covered by any confidentiality
        covenant, provision or clause, Mikelsons and each member of the ATA Group
        acknowledge and agree that such covenant, provision or clause shall
        automatically be deemed modified such that the contested covenant, provision
        or
        clause will have the closest effect permitted by applicable law to the original
        form and shall be given effect and enforced as so modified to whatever extent
        would be reasonable and/or enforceable under applicable law.

      

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      13. Amendment;
        Waiver; Successors.
        This
        Agreement may not be modified, amended or waived in any manner except by
        a
        written document executed by the ATA Group and Mikelsons,
        with
        the approval of the Bankruptcy Court to the extent required.
        The
        waiver by either party of compliance with any provision of this Agreement
        by the
        other party shall not operate or be construed as a waiver of any other provision
        of this Agreement (whether or not similar), or a continuing waiver or a waiver
        of any subsequent breach by such party of a provision of this Agreement.
        This
        Agreement and the covenants herein shall extend to and inure to the benefit
        of
        and
        shall
        be binding upon the legal representatives, heirs, successors and assigns
        of
        Mikelsons and the legal representatives, successors and assigns of the ATA
        Group. Further,
        the parties agree that this Agreement shall be incorporated into, and assumed
        as
        part of, any plan of reorganization confirmed in any of the pending chapter
        11
        cases of the members of the ATA Group.

       

      14. Governing
        Law and Forum.
        Mikelsons acknowledges and agrees that the State of Indiana has a substantial
        connection with this Agreement. This Agreement shall therefore be governed
        by
        and construed according to the internal laws of the State of Indiana, without
        regard to conflict of law principles. The parties further agree that any
        disputes arising under this Agreement and/or any action brought to enforce
        this
        Agreement may be brought in a state court of competent jurisdiction in Marion
        County, Indiana, or in the federal court for the Southern District of Indiana,
        and the parties consent to personal jurisdiction of such courts and waive
        any
        defense of forum non-conveniens.

      

      

      

      ATA
        Holdings Corp

      By:
        /s/ Brian T. Hunt, Senior Vice President and General Counsel
        (Title)

      Dated:
        August 31, 2005

      

      ATA
        Airlines, Inc. 

      By:
s/
        Brian T. Hunt, Senior Vice President and General Counsel
        (Title)

      Dated:
        August 31, 2005

      

      Ambassadair
        Travel Club, Inc.

      By:
s/
        Brian T. Hunt, Senior Vice President and General Counsel
        (Title)

      Dated:
        August 31, 2005

      

      ATA
        Leisure Corp.

      By:
s/
        Brian T. Hunt, Senior Vice President and General Counsel
        (Title)

      Dated:
        August 31, 2005

      

      Amber
        Travel, Inc.

      By:
s/
        Brian T. Hunt, Senior Vice President and General Counsel
        (Title)

      Dated:
        August 31, 2005

      

      American
        Trans Air Execujet, Inc.

      By:
s/
        Brian T. Hunt, Senior Vice President and General Counsel
        (Title)

      Dated:
        August 31, 2005

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      ATA
        Cargo, Inc.

      By:
s/
        Brian T. Hunt, Senior Vice President and General Counsel
        (Title)

      Dated:
        August 31, 2005

      

      C8
        Airlines, Inc.

      By:
s/
        Brian T. Hunt, Senior Vice President and General Counsel
        (Title)

      Dated:
        August 31, 2005

      

      By:
        /s/ J. George Mikelsons

      J.
        George
        Mikelsons       

      Date:
        August 31, 2005

      

      

      

      
        
           

        

        
          7

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