Amendment No. 6 to Letter Agreement DCT-015/2004 between Embraer and Republic Airline Inc.

Summary

This amendment updates the existing agreement between Embraer and Republic Airline Inc. regarding the purchase of aircraft. It modifies terms related to spare parts credits, the exercise of conditional aircraft into firm orders, and updates certain schedules and definitions in the original agreement. All other terms of the original letter agreement remain unchanged. The amendment is effective as of October 18, 2005, and is signed by authorized representatives of both companies.

EX-10.40(F) 6 exhibit10_40f.htm EXHIBIT 10.40 (F) AMENDMENT 6 TO LETTER AGREEMENT DCT-015/2004 Exhibit 10.40 (f) Amendment 6 to Letter Agreement DCT-015/2004
 
EXHIBIT 10.40 (f)
CONFIDENTIAL TREATMENT
 REQUESTED PURSUANT TO RULE 24b-2
 
Certain portions of this exhibit have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. The omitted materials have been filed separately with the Securities and Exchange Commission.
 
 CONFIDENTIAL
 
AMENDMENT No. 6 TO LETTER AGREEMENT DCT-015/2004

This Amendment No. 6 to Letter Agreement DCT-015/2004, dated as of October 18, 2005 (“Amendment No. 6”) relates to the Letter Agreement DCT-015/2004 (the “Letter Agreement”) between Embraer - Empresa Brasileira de Aeronáutica S.A. (“Embraer”) and Republic Airline Inc. (“Buyer”) dated March 19, 2004 and which concerns the Purchase Agreement DCT-014/2004 (the “Purchase Agreement”), as amended from time to time (collectively referred to herein as “Agreement”). This Amendment No. 6 is between Embraer and Buyer, collectively referred to herein as the “Parties”.
 
This Amendment No. 6 sets forth additional agreements between Embraer and Buyer relative to exercise of 5 Conditional Aircraft into 5 Firm Aircraft (as per Amendment No. 13 to the Purchase Agreement dated as of the date hereof), and [*].
 
Except as otherwise provided for herein all terms of the Letter Agreement shall remain in full force and effect. All capitalized terms used in this Amendment No. 6 that are not defined herein shall have the meaning given in the Letter Agreement. In the event of any conflict between this Amendment No. 6 and the Letter Agreement the terms, conditions and provisions of this Amendment No. 6 shall control.
 
NOW, THEREFORE, for good and valuable consideration which is hereby acknowledged Embraer and Buyer hereby agree as follows:
1.  
Spare Parts Credit:

1.1  
Article 1(ii) of the Letter Agreement shall be deleted and replaced by the following :
 
"(ii) Spare Parts Credit: Embraer will provide a spart parts (except for engines, engine related parts and APU), ground support equipment and test equipment credit of [*]. This [*] credit shall be made available to Buyer upon [*]. If for any reason [*], then [*] Buyer shall [*]. The [*] credit with respect to an Aircraft shall only be made available to Buyer in the event there is [*]. If [*] credit is not so made available to Buyer because [*] such credit shall be made available at such time thereafter [*]. Any portion of such credit which remains unused [*] shall be deemed to have been waived by Buyer, and no further compensation shall be due from Embraer to Buyer for such [*] credit(s). Such [*] credit(s) shall be applied [*]."
 
2. Aircraft

    2.1 [*]

3. [*]
 
    3.1 [*]
 
    3.2 [*]

4. Schedule 5
 
    4.1 Schedule 5 to the Letter Agreement is amended to [*]
 
    4.2 Schedule 5 to the Letter Agreement is amended to [*] and to [*]
 
    4.3 [*] of Schedule 5 to the Letter Agreement is amended by [*]

5. [*] Aircraft
 
For all purposes of the Purchase Agreement and the Letter Agreement (and the exhibits, schedules and attachments to either of the foregoing), the term [*] shall mean [*]

6. [*]

[*].
 
7. Miscellaneous
 
All other provisions of the Letter Agreement which have not been specifically amended or modified by this Amendment No. 6 shall remain valid in full force and effect without any change.
_____
*Confidential

 

 
 
CONFIDENTIAL

 
IN WITNESS WHEREOF, EMBRAER and BUYER, by their duly authorized officers, have entered into and executed this Amendment No. 6 to Letter Agreement to be effective as of the date first written above.
 
 
 
EMBRAER - Empresa Brasileira de Aeronáutica S.A.     REPUBLIC AIRLINE INC.
       
/s/ Horacio Aragones Forjaz     /s/ Bryan Bedford

   
Name: Horacio Aragones Forjaz
Title: Executive Vice President Corporate Communication
    Name: Bryan Bedford
Title: President
 
       
/s/ Jose Luis D. Molina      

   
Name: Jose Luis D. Molina
Title: Director of Contracts - Airline Market
   
Date: October 18, 2005     Date: October 18, 2005
Place: San Jose Dos Campos, S.P.     Place: Indianapolis, IN
       
Witness: /s/ Fernando Bueno     Witness /s/ Lars-Erik Arnell
Name: Fernando Bueno      Name: Lars-Erik Arnell