CONTINENTAL AIRLINES INC /DE/
EXHIBIT 10.39
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<TYPE>EX-10
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<FILENAME>exhibit1039.htm
<DESCRIPTION>EXHIBIT 10.39
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<FONT FACE="CG Times"><P ALIGN="RIGHT">Exhibit 10.39</P>
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<P ALIGN="RIGHT">&nbsp;</P>
</FONT><B><FONT FACE="Times New"><P ALIGN="CENTER">EMB-135 FINANCING LETTER OF AGREEMENT</P>
<P ALIGN="CENTER">March 23, 2000</P>
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<P>This Letter of Agreement ("LOA" or "Agreement") dated March 23, 2000,  is an agreement among Continental Express, Inc. ("Coex" </FONT><B><FONT FACE="Arial">[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]</B></FONT><FONT FACE="Times New">), with its principal place of business at 1600 Smith Street, Houston, Texas; Continental Airlines, Inc. ("Continental" or </FONT><B><FONT FACE="Arial">[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]</B></FONT><FONT FACE="Times New">), with its principal place of business at 1600 Smith Street, Houston, Texas; and Embraer-Empresa Brasileira de Aeronautica S.A. ("Embraer"), with its principal place of business at S&atilde;o Jos&eacute; dos Campos,
S&atilde;o Paulo, Brazil, as it relates to Purchase Agreement DCT-054/98 dated as of December 23, 1998 (the "Purchase Agreement") of up to seventy-five (75) EMB-135 aircraft each equipped with Rolls-Royce Allison AE3007A1/3 engines, to be delivered
therewith consisting of twenty-five (25) firm order aircraft (the "Firm Aircraft") and up to fifty (50) additional aircraft to be delivered at Coex's option (the "Option Aircraft"). </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">This LOA sets forth certain agreements among Coex, Continental and Embraer (the "Parties") with respect to the first 25 Firm Aircraft and first 25 Option Aircraft ("Aircraft").  In case of any conflict between this LOA and the Purchase
Agreement, this LOA shall govern.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">WHEREAS, the Parties propose to enter into certain lease financing transactions relating to the Aircraft;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:</P>

<P>&nbsp;</P>
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<LI>   <U>General</LI></OL>
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<P>&#9;&#9;&#9;2.&#9;<U>Certain Definitions</P>
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<P>Owner </P></DIR>
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<P>Participant:&#9;Embraer, or its successor, designee, or transferee, provided any such designee or transferee has a consolidated net worth of not less than twenty-five million dollars (USD25,000,000).</P>
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</FONT><B><FONT FACE="Arial"><P>[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]</P>
</B></FONT><FONT FACE="Times New"><P ALIGN="JUSTIFY"></P><DIR>
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<P>Manufacturer:&#9;Embraer - Empresa Brasileira de Aeronautica S.A., a Brazilian corporation.</P>
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<P>Engine</P>
<P>Manufacturer:&#9;Allison Engine Company, Inc., a Delaware corporation.</P>

</FONT><B><FONT FACE="Arial"><P>[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]</P>
</B></FONT><FONT FACE="Times New"><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P>&#9;&#9;&#9;&#9;3.&#9;<U>Aircraft, </U></FONT><B><FONT FACE="Arial">[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] </B></FONT><U><FONT FACE="Times New">
and Delivery Date.</U> </P>
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<P ALIGN="JUSTIFY">Aircraft:&#9;&#9;Each Embraer EMB-135 aircraft together with two Rolls-Royce Allison AE3007A1/3 engines originally delivered therewith pursuant to the Purchase Agreement and any replacement engines therefor (the "Engines").  The
Aircraft without the Engines is sometimes referred to as the "Airframe."</P>
<P ALIGN="JUSTIFY">&#9;</P>
<P ALIGN="JUSTIFY">    </FONT><B><FONT FACE="Arial">[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]</P>
</B></FONT><FONT FACE="CG Times">
</FONT><FONT FACE="Times New"><P ALIGN="JUSTIFY">Delivery Date:&#9;The date on which an Aircraft is delivered to and accepted by Lessee under a Lease.</P>
<P ALIGN="JUSTIFY"></P>
</FONT><B><FONT FACE="Arial"><P ALIGN="JUSTIFY">[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]</P>
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</FONT><FONT FACE="Times New"><P ALIGN="JUSTIFY">&nbsp;</P></DIR>
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<P ALIGN="JUSTIFY">8.&#9;<U>Miscellaneous</U>:</P>
<P ALIGN="JUSTIFY"></P><DIR>
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</FONT><FONT FACE="CG Times"><P ALIGN="JUSTIFY">Closing</P>
<P ALIGN="JUSTIFY">Conditions:&#9;The obligations of the Lessor to consummate the proposed transaction will be subject to the following conditions to closing</FONT><FONT FACE="Times New">:</P>
<P ALIGN="JUSTIFY"></P><DIR>
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<P ALIGN="JUSTIFY">(i) &#9;the absence of any material adverse change from the financial  condition of the </FONT><B><FONT FACE="Arial">[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST
FOR CONFIDENTIAL TREATMENT] </B></FONT><FONT FACE="Times New">as reflected in the Annual Report on Form 10-K for the year ended </FONT><B><FONT FACE="Arial">[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT] </B></FONT><FONT FACE="Times New">filed by the </FONT><B><FONT FACE="Arial">[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] </B></FONT><FONT FACE="Times New">
with the Securities and Exchange Commission;</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY"> (ii)&#9;the absence of any default of </FONT><B><FONT FACE="Arial">[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]</B></FONT><FONT
FACE="Times New">; and</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">(iii)&#9;delivery of customary and satisfactory certificates and legal opinions by </FONT><B><FONT FACE="Arial">[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT]</B></FONT><FONT FACE="Times New">.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P><DIR>
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<P ALIGN="JUSTIFY">Governing Law:&#9;New York</P>
<P ALIGN="JUSTIFY"></P></DIR>
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</FONT><B><FONT FACE="Arial"><P ALIGN="JUSTIFY">[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]</P>
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<P ALIGN="JUSTIFY">Confidentiality:&#9;The Lease and related documentation will be considered confidential and will not be disclosed to third parties, subject to customary exceptions.  Any documents required to be publicly filed shall have all
proprietary and confidential information redacted to the extent permitted by law.  The Manufacturer and the Lessee may, however, issue customary press releases with respect to the transaction, provided that neither the Manufacturer nor the Lessee shall
issue any such press release without the review of the other.</P>
<P ALIGN="JUSTIFY"></P></DIR>
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<P ALIGN="CENTER">[Signature page follows.]</P>

<P>IN WITNESS WHEREOF, the parties hereto have caused this LOA to be duly executed and delivered by their proper and authorized officers and to be effective as of the day and year first above written.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">CONTINENTAL EXPRESS, INC.&#9;&#9;&#9;CONTINENTAL AIRLINES, INC.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">By:  /s/ Frederick S. Cromer&#9;&#9;&#9;By:  /s/ Gerald Laderman</P>
<P ALIGN="JUSTIFY">Name:&#9; Frederick S. Cromer&#9;&#9;&#9;Name:  Gerald Laderman  </P>
<P ALIGN="JUSTIFY">Title:&#9;VP Finance &amp; CFO&#9;&#9;&#9;Title: Senior Vice President - Finance</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">Witness:  /s/ James von Atzingen&#9;&#9;&#9;Witness:  /s/ James von Atzingen</P>
<P ALIGN="JUSTIFY">Name:    James von Atzingen&#9;&#9;&#9;Name:  James von Atzingen</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">EMBRAER - EMPRESA BRASILEIRA DE</P>
<P ALIGN="JUSTIFY">AERONAUTICA  S.A</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">By:   /s Frederico Fleury Curado &#9;&#9;&#9;By:  /s/ Flavio Rimoli &#9;&#9;</P>
<P ALIGN="JUSTIFY">Name:  Frederico Fleury Curado&#9;&#9;&#9;Name:   Flavio Rimoli &#9;&#9;</P>
<P ALIGN="JUSTIFY">Title:   Executive Vice President Commercial&#9;&#9;Title:   Director of Contracts</P>
<P ALIGN="JUSTIFY">&#9;&#9; </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">Witness:  /s/ H. M. Olivero&#9; &#9;&#9;Witness:  /s/ Brasil E. Areco</P>
<P ALIGN="JUSTIFY">Name:     H. M. Olivero&#9;&#9;&#9;Name:&#9;Brasil E. Areco</P>
</FONT><B><FONT FACE="CG Times"><P ALIGN="RIGHT">ANNEX A</P>
</B><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">&nbsp;</P>
<B><P ALIGN="CENTER">CONTINENTAL EXPRESS, INC.</P>
</B><P ALIGN="JUSTIFY"></P>
</FONT><B><FONT FACE="Arial"><P>[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]</P>
</FONT><P ALIGN="RIGHT">ANNEX B</P>
</B><FONT FACE="CG Times"><P ALIGN="CENTER"></P>
<B><P ALIGN="CENTER">&nbsp;</P>
</FONT><FONT FACE="Arial"><P>[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]</P>
</B></FONT><FONT FACE="CG Times"><P ALIGN="CENTER"></P>
<B><U><P ALIGN="CENTER">Attachment 1</P>
</B></U><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
</FONT><B><FONT FACE="Arial"><P ALIGN="JUSTIFY">[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]</P>
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<P ALIGN="JUSTIFY">&nbsp;</P>
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