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EXHIBIT 10.40(l)
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.

 
AMENDMENT No. 12 TO LETTER AGREEMENT DCT-015/2004

This Amendment No. 12 to Letter Agreement DCT-015/2004, dated as of June 22,
2007 (“Amendment No. 12”) 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. 12 is between Embraer and Buyer, collectively
referred to herein as the “Parties”.

This Amendment No. 12 sets forth additional agreements between Embraer and Buyer
related to the confirmation of 5 Option EMBRAER 170 Aircraft into 5 Firm EMBRAER
175 Aircraft.
 
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. 12 that are not defined herein shall have the meaning given in the Letter
Agreement. In the event of any conflict between this Amendment No. 12 and the
Letter Agreement the terms, conditions and provisions of this Amendment No. 12
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 spare parts (except for
engines, engine related parts and APU), ground support equipment, test equipment
credit and special services of ***.  This credit shall be made available to
Buyer upon ***.  If for any reason ***, then *** Buyer shall ***.  *** only be
made available to Buyer in the event there is no outstanding balance due from
Buyer to Embraer related to the purchase of such Aircraft.  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 Purchase Price
 
     
2.1 Article 2.4 of the Letter Agreement *** for ***.

 
3.  Conversion
 
 
3.1 The first  paragraph of Article 4.a shall be deleted and replaced by the
following:

   

  “Buyer shall have the flexibility to request the conversion of any Aircraft
into the EMBRAER 170 (configured as a *** 170 Aircraft), EMBRAER 175 (configured
as *** 175 Aircraft), the EMBRAER 190, or the EMBRAER 195 jet aircraft
(collectively, the “Conversion Aircraft”), provided ***.”

   

  3.2 Article 4.e shall be deleted and replaced with the following:

   

  “e) EMBRAER 170 Conversion Aircraft Offer Price:

   

  The Basic Price for each Conversion Aircraft that is configured as a *** 170
Aircraft (the “170 Conversion Aircraft”) ***.”

 
 
3.3 The penultimate paragraph of Article 4 shall be deleted and replaced with
the following:

   

  “Each 170 Conversion Aircraft shall be configured as a *** 170 Aircraft (as
specified in the applicable conversion notice), each 175 Conversion Aircraft
shall be configured as *** a *** 175 Aircraft (as specified in the applicable
conversion notice) and each 190 Conversion Aircraft or 195 Conversion Aircraft
shall be configured as per Exhibit 3, and shall be available to Buyer at each
relevant Conversion Aircraft Basic Price and in ***.”

 
4.  ***
 
       
 4.1 ***.

 

All other provisions of the Letter Agreement which have not been specifically
amended or modified by this Amendment No. 12 shall remain valid in full force
and effect without any change.
 
____________
***Confidential

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IN WITNESS WHEREOF, EMBRAER and BUYER, by their duly authorized officers, have
entered into and executed this Amendment No. 12 to Letter Agreement to be
effective as of the date first written above.

 
EMBRAER – Empresa Brasileira de Aeronáutica S.A.
   
Republic Airline Inc.
           
/s/ Mauro Kern Junior
   
/s/ Bryan K. Bedford
 
Name: Mauro Kern Junior
   
Name:
 
Title: Executive Vice President 
   
Title:
 

 

         
/s/ José Luís D. Molina
   
Date: June 22, 2007
 
Name: José Luís D. Molina
   
Place: Indianapolis
 
Title: Vice President Contracts 
   
 
  Date: June 22, 2007         S.J. Dos Campos, Brazil        

 
 
 
 

         
Witness: /s/ Carlos Martins Dutra
   
Witness: /s/ Lars-Erik Arnell 
 
Name: Carlos Martins Dutra
   
Name: Lars-Erik Arnell 
 
 
   
 
 

 

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Amended and Restated Schedule 6
 
***
 

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***Confidential

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