EXHIBIT 10.4

 

 

SECOND AMENDED AND RESTATED

CAPACITY PURCHASE AGREEMENT

among

Continental Airlines, Inc.,

ExpressJet Holdings, Inc.,

XJT Holdings, Inc.

and

ExpressJet Airlines, Inc. 

 

 

Dated as of June 5, 2008

 

 

 

 

 

 

 

 

Table of Contents

ARTICLE I DEFINITIONS	*
ARTICLE II CAPACITY PURCHASE, SCHEDULES AND FARES	*

Section 2.01	*Capacity Purchase	*
Section 2.02	*Flight-Related Revenues	*
Section 2.03	*Replacement Aircraft	*
Section 2.04	*Return Aircraft	*
Section 2.05	*Withdrawal of Covered Aircraft	*
Section 2.06	*Exchange of Covered Aircraft	*
Section 2.07	*Contractor's Right of First Opportunity	*
Section 2.08	*Return Conditions; Storage	*
ARTICLE III CONTRACTOR COMPENSATION	*

Section 3.01	*Base and Incentive Compensation	*
Section 3.02	*Periodic Adjustment of Base and Incentive Compensation	*
Section 3.03	*Contractor Expenses	*
Section 3.04	*Continental Expenses	*
Section 3.05	*Audit Rights	*
Section 3.06	*Billing and Payment; Reconciliation.	*
ARTICLE IV CONTRACTOR OPERATIONS AND AGREEMENTS WITH CONTINENTAL	*

Section 4.01	*Crews; Resource Allocation.	*
Section 4.02	*Governmental Regulations	*
Section 4.03	*Quality*of Service*	*
Section 4.04	*Safety Matters	*
Section 4.05	*Amended and Restated Master Facility and Ground Handling Agreement	*
Section 4.06	*Codeshare Terms	*
Section 4.07	*Amended and Restated Administrative Support and Information Services Provisioning Agreement	*
Section 4.08	*Amended and Restated Fuel Purchasing Agreement	*
Section 4.09	*Slots and Route Authorities	*
Section 4.10	*Use of Continental Marks	*
Section 4.11	*Use of Contractor Marks	*
Section 4.12	*Catering Standards	*
Section 4.13	*Ticket Handling Terms	*
Section 4.14	*Fuel Efficiency Program	*
Section 4.15	*Basic Rent Abatement under Covered Aircraft Subleases	*
Section 4.16	*Covered Aircraft Sublease	*
Section 4.17	*Uncovered Aircraft Sublease	*
Section 4.18	*Other Rights Relating to Uncovered Aircraft by Contractor	*
ARTICLE V EXCLUSIVITY AND CERTAIN RIGHTS OF CONTINENTAL	*

Section 5.01	*Exclusivity; Use of Covered Aircraft	*
Section 5.02	*Exclusive Arrangements at Existing Hub Airports	*
Section 5.03	*Change of Control	*
ARTICLE VI INSURANCE	*

Section 6.01	*Minimum Insurance Coverages	*
Section 6.02	*Endorsements	*
Section 6.03	*Evidence of Insurance Coverage	*
Section 6.04	*Insurance Through Combined Placement**.**	*
ARTICLE VII INDEMNIFICATION	*

Section 7.01	*Contractor Indemnification of Continental	*
Section 7.02	*Continental Indemnification of Contractor	*
Section 7.03	*Indemnification Claims	*
Section 7.04	*Employer's Liability; Independent Contractors; Waiver of Control	*
Section 7.05	*Survival	*
ARTICLE VIII TERM, TERMINATION AND DISPOSITION OF AIRCRAFT	*

Section 8.01	*Base Term	*
Section 8.02	*Early Termination.	*
Section 8.03	*Disposition of Aircraft during Wind-Down Period.	*
Section 8.04	*Other Remedies for Breach.	*
Section 8.05	*Contractor's Right to Retain Covered Aircraft.	*
ARTICLE IX REPRESENTATIONS, WARRANTIES AND COVENANTS	*

Section 9.01	*Representations, Warranties and Covenants of Holdings, XJT and ExpressJet	*
Section 9.02	*Representations and Warranties of Continental	*
ARTICLE X MISCELLANEOUS	*

Section 10.01	*Conversion of Covered Aircraft Livery	*
Section 10.02	*Amendment of Certain Contracts	*
Section 10.03	*Notices	*
Section 10.04	*Binding Effect; Assignment	*
Section 10.05	*Amendment and Modification	*
Section 10.06	*Waiver	*
Section 10.07	*Interpretation	*
Section 10.08	*Confidentiality	*
Section 10.09	*Arbitration	*
Section 10.10	*Counterparts	*
Section 10.11	*Severability	*
Section 10.12	*Equitable Remedies	*
Section 10.13	*Relationship of Parties	*
Section 10.14	*Entire Agreement; No Third Party Beneficiaries	*
Section 10.15	*Governing Law	*
Section 10.16	*Guarantees.	*
Section 10.17	*Right of Set-Off	*
Section 10.18	*Cooperation with Respect to Reporting	*
Section 10.19	*Refinancing of Uncovered Aircraft at Contractor's Option	*
 

SCHEDULE 1:	Covered Aircraft

SCHEDULE 2:	Continental Increased Lease Rate 

SCHEDULE 3:	Compensation for Capacity Purchase

EXHIBIT A:	Definitions

EXHIBIT B:	[Reserved.]	

EXHIBIT C:	Master Facility and Ground Handling Agreement

EXHIBIT D:	Terms of Codeshare Arrangements

EXHIBIT E:	Administrative Support and Information Services Provisioning Agreement

EXHIBIT F:	Fuel Purchasing Agreement

EXHIBIT G:	Use of Continental Marks

EXHIBIT H:	Use of Contractor Marks

EXHIBIT I:	Catering Standards

EXHIBIT J:	Ticket Handling Terms

EXHIBIT K:	Fuel Efficiency Program

 
**SECOND AMENDED AND RESTATED************************************************************************