Document:

CERTIFICATION

EXHBIT 10.1

 

Supplemental Agreement No. 5

to

Purchase Agreement No. 2484

between

The Boeing Company

and

Continental Airlines, Inc.

Relating to Boeing Model 787 Aircraft

THIS SUPPLEMENTAL AGREEMENT, entered into as of March 12, 2007, by and between THE BOEING COMPANY (Boeing) and CONTINENTAL AIRLINES, INC. (Customer);

WHEREAS, the parties hereto entered into Purchase Agreement No. 2484 dated December 29, 2004 (the Purchase Agreement), as amended and supplemented, relating to Boeing Model 787-8 aircraft (the Aircraft);

WHEREAS, Boeing and Customer have agreed to [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

WHEREAS, Boeing agrees to [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

WHEREAS, Boeing and Customer have mutually agreed to [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

WHEREAS, Boeing and Customer have mutually agreed to the [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

WHEREAS, Boeing and Customer have mutually agreed to [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

WHEREAS, Boeing and Customer have mutually agreed to [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

WHEREAS, Boeing and Customer have mutually agreed to [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

WHEREAS, Boeing and Customer have mutually agreed to [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

WHEREAS, Boeing and Customer have mutually agreed to [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

WHEREAS, Boeing and Customer have mutually agreed to provide [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

WHEREAS, Boeing and Customer have mutually agreed to revise the notification period to acquire an Option Aircraft in Letter Agreement 6-1162-MSA-547 to [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] prior to delivery for an Option Aircraft with a [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] prior to delivery for an Option Aircraft with a [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].  

WHEREAS, Boeing and Customer have mutually [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

WHEREAS, Boeing and Customer have mutually agreed to [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

WHEREAS, Boeing has agreed to update the number of training points to which Customer is entitled, based on the additional [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].

NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree to amend the Purchase Agreement as follows:

1.Table of Contents, Articles, Tables and Exhibits:

1.1Remove and replace, in its entirety, the "Table of Contents," with the Table of Contents attached hereto, to reflect the changes made by this Supplemental Agreement No. 5.

1.2Remove and replace, in its entirety, the "Table 1," with the Table 1 attached hereto, to reflect the changes made by this Supplemental Agreement No. 5, and to reflect the latest escalation forecast.

1.3Remove and replace, in its entirety, the "Exhibit A," with the Exhibit A-1 and Exhibit A-2 attached hereto, to reflect the changes made by this Supplemental Agreement No. 5. 

1.3Remove and replace, in its entirety, the "Supplemental Exhibit CS1," with the Supplemental Exhibit CS1 attached hereto, to reflect the changes made by this Supplemental Agreement No. 5. 

2.Letter Agreements:

2.1Remove and replace, in its entirety, Letter Agreement 6-1162-MSA-546R2, "Open Configuration Matters," with the revised Letter Agreement 6-1162-MSA-546R3 attached hereto.

2.2Remove and replace, in its entirety, Letter Agreement 6-1162-MSA-547R3, "Option Aircraft," with the revised Letter Agreement 6-1162-MSA-547R4 attached hereto.

2.3Remove and replace, in its entirety, Letter Agreement 6-1162-MSA-551R1, [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] with the revised Letter Agreement 6-1162-MSA-551R2 attached hereto and insert after the end of current Letter Agreement 6-1162-MSA-551R1 which includes a new attachment for the  787-9 performance guarantees.

2.4Remove and replace, in its entirety, Letter Agreement 6-1162-MSA-552R4, "Special Matters," with the revised Letter Agreement 6-1162-MSA-552R4 attached hereto.

2.5Remove and replace, in its entirety, Letter Agreement 6-1162-MSA-554R2, [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] with the revised Letter Agreement 6-1162-MSA-554R3 attached hereto.

 

The Agreement will be deemed to be supplemented to the extent herein provided as of the date hereof and as so supplemented will continue in full force and effect.

 

EXECUTED IN DUPLICATE as of the day and year first written above.

 

THE BOEING COMPANYCONTINENTAL AIRLINES, INC.

 

 

 

By:/s/Anthony J. Hicker By:/s/ Gerald Laderman

Its:  Attorney-In-Fact__Its:  Senior Vice President -
       Finance and Treasurer

 

TABLE OF CONTENTS

 

SA

ARTICLESNUMBER

1.Quantity, Model and Description2

2.Delivery Schedule2

3.Price2

4.Payment2

5.Additional Terms2

 

TABLE

1.Aircraft Information Table5

 

EXHIBIT

A1.787-8 Aircraft Configuration5

A2.787-9 Aircraft Configuration5

B.Aircraft Delivery Requirements and Responsibilities1

 

SUPPLEMENTAL EXHIBITS

AE1.Escalation Adjustment/Airframe and Optional Features1

BFE1.Buyer Furnished Equipment Variables1

CS1.Customer Support Document5

EE1.Engine Escalation/Engine Warranty and Patent Indemnity2

SLP1.Service Life Policy Components1

 

TABLE OF CONTENTS

 

SA

LETTER AGREEMENTS NUMBER

6-1162-MSA-546R3Open Configuration Matters5

6-1162-MSA-547R4Option Aircraft5

6-1162-MSA-549Spares Initial Provisioning1

 

 

TABLE OF CONTENTS

SA

CONFIDENTIAL LETTER AGREEMENTS NUMBER

6-1162-MSA-550Spare Parts Commitment1

6-1162-MSA-551R2[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]5

6-1162-MSA-552R5Special Matters5

6-1162-MSA-553R1Open Matters 1

6-1162-MSA-554R3[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]5

6-1162-MSA-555Promotional Support1

 

 

TABLE OF CONTENTS

 

SUPPLEMENTAL AGREEMENTSDATED AS OF:

Supplemental Agreement No. 1June 30, 2005

Supplemental Agreement No. 2January 20, 2006

Supplemental Agreement No. 3May 3, 2006

Supplemental Agreement No. 4July 14, 2006

Supplemental Agreement No. 5March 12, 2007

Table 1

Purchase Agreement 2484

Aircraft Delivery, Description, Price and Advance Payments

(787-8 / [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] / 2006$s / [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT])

 

[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

Table 1

Purchase Agreement 2484

Aircraft Delivery, Description, Price and Advance Payments

(787-9 / [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] / 2006$s / [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT])

 

[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

Table 1

Purchase Agreement 2484

Aircraft Delivery, Description, Price and Advance Payments

(787-9 / [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] / 2006$s / [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT])

 

[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

@PA/EXA#

 

 

 

 

 

 

AIRCRAFT CONFIGURATION

 

between

 

THE BOEING COMPANY

 

and

 

CONTINENAL AIRLINES, INC.

 

 

 

 

 

Exhibit A1 to Purchase Agreement Number 2484

 

 

 

 

 

 

 

AIRCRAFT CONFIGURATION

 

relating to

 

BOEING MODEL 787-8 AIRCRAFT

 

 

 

The Airframe Price in Table 1 was established utilizing the 787 Airplane Description and Selections 787B1-0227 Revision J dated December 15, 2006.  The content of this Exhibit A1 will be defined pursuant to the provisions of Letter Agreement 6-1162-MSA-546R3, Open Configuration Matters, to the Purchase Agreement.

@PA/EXA#

 

 

 

 

 

 

AIRCRAFT CONFIGURATION

 

between

 

THE BOEING COMPANY

 

and

 

CONTINENAL AIRLINES, INC.

 

 

 

 

 

Exhibit A2 to Purchase Agreement Number 2484

 

 

 

 

 

 

 

AIRCRAFT CONFIGURATION

 

relating to

 

BOEING MODEL 787-9 AIRCRAFT

 

 

 

The Airframe Price in Table 1 was established utilizing the 787 Airplane Description and Selections 787B1-0227 Revision J dated December 15, 2006.  The content of this Exhibit A2 will be defined pursuant to the provisions of Letter Agreement 6-1162-MSA-546R3, Open Configuration Matters, to the Purchase Agreement.

 

 

 

 

 

 

787 CUSTOMER SUPPORT DOCUMENT

between

THE BOEING COMPANY

and

CONTINENTAL AIRLINES, INC.

 

Supplemental Exhibit CS1 to Purchase Agreement Number 2484

 

This document contains:

Part 1:Boeing Maintenance and Flight Training Programs; Operations Engineering Support

Part 2:Field Services and Engineering Support 

Services

Part 3:Technical Information and Materials

Part 4:Alleviation or Cessation of Performance

Part 5:Protection of Proprietary Information and

Proprietary Materials

787 CUSTOMER SUPPORT DOCUMENT

PART 1:BOEING MAINTENANCE AND FLIGHT TRAINING

PROGRAMS; OPERATIONS ENGINEERING SUPPORT

 

1.Boeing Training Programs.

Boeing will provide maintenance training, cabin attendant training, and flight training programs to support the introduction of the Aircraft into service as provided in this Supplemental Exhibit CS1. 

 1.1Customer is awarded 2,385 points (Training Points) [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].  At any time before 24 months after delivery of Customer's last Aircraft (Training Program Period) Customer may exchange Training Points for any of the training courses described on Attachment A at the point values described on Attachment A or for other training Boeing may identify at specified point values.  At the end of the Training Program Period any unused Training Points will expire.  For clarity, the Training Program Period is estimated to start no earlier than 6 months prior to Customer's initial Aircraft deliveries.  Actual start dates and schedules will be coordinated at the planning conference, which per Article 2.1 below is estimated to occur approximately 12 months prior to Aircraft entry into service.

1.2In addition to the training provided in Article 1.1, Boeing will provide to Customer the following training and services:

1.2.1Flight dispatcher model specific instruction; 2 classes of 6 students;

1.2.2Performance engineer model specific instruction in Boeing's regularly scheduled courses; schedules are published yearly.

1.2.3Additional Flight Operations Services:

a.Boeing flight crew personnel to assist in ferrying the first Aircraft to Customer's main base;

b.Instructor pilots for 90 Man Days (as defined in Article 5.4, below) for revenue service training assistance;

c.An instructor pilot to visit Customer 6 months after revenue service training to review Customer's flight crew operations for a 

2 week period.

If any part of the training described in this Article 1.2 is not completed by Customer within 24 months after the delivery of the last Aircraft, Boeing will have no obligation to provide such training.

2.Training Schedule and Curricula.

2.1Customer and Boeing will together conduct planning conferences approximately 12 months before the scheduled delivery month of the first Aircraft of a model to define and schedule the maintenance, flight training and cabin attendant training programs.  At the conclusion of each planning conference the parties will document Customer's course selection, training schedule, and, if applicable, Training Point application and remaining Training Point balance.

2.2Customer may also request training by written notice to Boeing identifying desired courses, dates and locations.  Within 15 days of Boeing's receipt of such request Boeing will provide written response to Customer confirming whether the requested courses are available at the times and locations requested by Customer.  

3.Location of Training.

3.1Boeing will conduct all training at any of its or its wholly-owned subsidiaries' training facilities equipped for the model of Aircraft.  Customer shall decide on the location or mix of locations for training, subject to space being available in the desired courses at the selected training facility on the dates desired.

3.2If requested by Customer, Boeing will conduct the classroom portions of the maintenance and flight training (except for the Performance Engineer training courses) at a mutually acceptable alternate training site, subject to the following conditions:

3.2.1Customer will provide acceptable classroom space, simulators (as necessary for flight training) and training equipment required to present the courses; 

3.2.2Customer will pay Boeing's portal to portal actual expenses for lodging, ground transportation, laundry, baggage handling, communication costs and per diem meal charge for each Boeing instructor for each day, or fraction thereof, that the instructor is away from his home location, including travel time; 

3.2.3Customer will provide, or will reimburse Boeing for the actual costs of round-trip transportation for Boeing's instructors and the shipping costs of training Materials (as defined in Part 3 paragraph 1 of this Supplemental Exhibit CS1), which must be shipped to the alternate training site; 

3.2.4Customer will be responsible for all taxes, fees, duties, licenses, permits and similar expenses incurred by Boeing and its employees as a result of Boeing's providing training at the alternate site or incurred as a result of Boeing providing revenue service training; and

3.2.5Those portions of training that require the use of training devices not available at the alternate site will be conducted at Boeing's facility or at some other alternate site.  Customer will be responsible for additional expenses, if any, which result from the use of such alternate site.

4.Training Materials.

Boeing will provide training Materials will be provided for each student (Training Materials).  In addition, if requested by Customer, one complete set of Training Materials will be provided for use in Customer's own training program.  Training Materials may be used only for either (i) the individual student's reference during Boeing provided training and for review thereafter or (ii) Customer's provision of training to individuals directly employed by the Customer.  

5.Additional Terms and Conditions.

5.1All training will reflect an airplane configuration defined by (i) Boeing's standard configuration specification for 787 aircraft, (ii) Boeing's standard configuration specification for the minor model of 787 aircraft selected by Customer, and (iii) any Optional Features selected by Customer from Boeing's standard catalog of Optional Features.  Upon Customer's request, Boeing may provide training customized to reflect other elements of Customer's Aircraft configuration subject to a mutually acceptable price, schedule, scope of work and other applicable terms and conditions.  

5.2All training will be provided in the English language.  If translation is required, Customer will provide interpreters.

5.3Customer will be responsible for all expenses of Customer's personnel except that in the Puget Sound region of Washington State Boeing will transport Customer's personnel between their local lodgings and Boeing's training facility.

5.4Boeing flight instructor personnel will not be required to work more than 5 days per week, or more than 8 hours in any one 24-hour period (Man Day), of which not more than 5 hours per 8-hour workday will be spent in actual flying.  These foregoing restrictions will not apply to ferry assistance or revenue service training services, which will be governed by FAA rules and regulations.

5.5Normal Line Maintenance is defined as line maintenance that Boeing might reasonably be expected to furnish for flight crew training at Boeing's facility, and will include ground support and Aircraft storage in the open, but will not include provision of spare parts.  Boeing will provide Normal Line Maintenance services for any Aircraft while the Aircraft is used for flight crew training at Boeing's facility in accordance with the Boeing Maintenance Plan (Boeing document D6-82076) and the Repair Station Operation and Inspection Manual (Boeing document D6-25470).  Customer will provide such services if flight crew training is conducted elsewhere.  Regardless of the location of such training, Customer will be responsible for providing all maintenance items (other than those included in Normal Line Maintenance) required during the training, including, but not limited to, fuel, oil, landing fees and spare parts.  

5.6If the training is based at Boeing's facility and the Aircraft is damaged during such training, Boeing will make all necessary repairs to the Aircraft as promptly as possible.  Customer will pay Boeing's reasonable charge, including the price of parts and materials, for making the repairs.  If Boeing's estimated labor charge for the repair exceeds [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT], Boeing and Customer will enter into an agreement for additional services before beginning the repair work.

5.7If the flight training is based at Boeing's facility, several airports in the surrounding area may be used, at Boeing's option, which shall be identified by Boeing at the flight training planning conference.  Unless otherwise agreed in the flight training planning conference, it will be Customer's responsibility to make arrangements for the use of such airports.  

5.8If Boeing agrees to make arrangements on behalf of Customer for the use of airports for flight training, Boeing will pay on Customer's behalf any landing fees charged by any airport used in conjunction with the flight training.  At least 30 days before flight training, Customer will provide Boeing an open purchase order against which Boeing will invoice Customer for any landing fees Boeing paid on Customer's behalf.  The invoice will be submitted to Customer approximately 60 days after flight training is completed, when all landing fee charges have been received and verified.  Customer will pay the invoiced amount to Boeing within 30 days of the date of the invoice.

5.9If requested by Boeing, in order to provide the flight training or ferry flight assistance, Customer will make available to Boeing an Aircraft after delivery to familiarize Boeing instructor or ferry flight crew personnel with such Aircraft.  If flight of the Aircraft is required for any Boeing instructor or ferry flight crew member to maintain an FAA license for flight proficiency or landing currency, Boeing will be responsible for the costs of fuel, oil, landing fees and spare parts attributable to that portion of the flight.

 

787 CUSTOMER SUPPORT DOCUMENT

PART 2:FIELD AND ENGINEERING SUPPORT SERVICES

 

1.Field Service Representation.

Boeing will furnish field service representation to advise Customer with respect to the maintenance and operation of the Aircraft (Field Service Representatives).

1.1Field Service Representatives will be available at or near Customer's main maintenance or engineering facility beginning before the scheduled delivery month of the first Aircraft and ending [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] after delivery of the last Aircraft covered by a specific purchase agreement.

1.2When a Field Service Representative is positioned at Customer's facility, Customer will provide, at no charge to Boeing, suitable furnished office space and office equipment, including internet capability for electronic access of data, at the location where Boeing is providing Field Service Representatives.  As required, Customer will assist each Field Service Representative with visas, work permits, customs, mail handling, identification passes and formal introduction to local airport authorities.

1.3Boeing's Field Service Representatives are assigned to various airports and other locations around the world.  Whenever Customer's Aircraft are operating through any such airport, the services of Boeing's Field Service Representatives are available to Customer.

2.Engineering Support Services.

2.1Boeing will, if requested by Customer, provide technical advisory assistance from the Seattle area or at a base designated by Customer as appropriate for any Aircraft or Boeing Product (as defined in Part 1 of Exhibit C of the AGTA).  Technical advisory assistance provided will include:

2.1.1Analysis of the information provided by Customer to determine the probable nature and cause of operational problems and suggestion of possible solutions. 

2.1.2Analysis of the information provided by Customer to determine the nature and cause of unsatisfactory schedule reliability and the suggestion of possible solutions. 

2.1.3Analysis of the information provided by Customer to determine the nature and cause of unsatisfactory maintenance costs and the suggestion of possible solutions. 

2.1.4Analysis and commentary on Customer's engineering releases relating to structural repairs not covered by Boeing's Structural Repair Manual including those repairs requiring advanced composite structure design. 

2.1.5Analysis and commentary on Customer's engineering proposals for changes in, or replacement of, systems, parts, accessories or equipment manufactured to Boeing's detailed design.  Boeing will not analyze or comment on any major structural change unless Customer's request for such analysis and comment includes complete detailed drawings, substantiating information (including any information required by applicable government agencies), all stress or other appropriate analyses, and a specific statement from Customer of the substance of the review and the response requested. 

2.1.6One (1) evaluation of Customer's technical facilities, tools and equipment for servicing and maintaining 787 aircraft, recommendation of changes where necessary and assistance in the formulation of an initial maintenance plan for the introduction of the first Aircraft into service. 

2.1.7Assistance with the analysis and preparation of performance data to be used in establishing operating practices and policies for Customer's operation of Aircraft.

2.1.9Assistance with interpretation of the minimum equipment list, the definition of the configuration deviation list and the analysis of individual Aircraft performance. 

2.1.9Assistance with solving operational problems associated with delivery and route-proving flights. 

2.1.10  Information regarding significant service items relating to Aircraft performance or flight operations.

2.1.11Operations engineering support during the ferry flight of an Aircraft. 

2.1.12Assistance in developing an Extended Twin Operations (ETOPs) plan for regulatory approval.

2.2Boeing will, if requested by Customer, perform work on an Aircraft after delivery but prior to the initial departure flight or upon the return of the Aircraft to Boeing's facility prior to completion of that flight.   The following conditions will apply to Boeing's performance:  

2.2.1Boeing may rely upon the commitment authority of the Customer's personnel requesting the work.  

2.2.2As title and risk of loss has passed to Customer, the insurance provisions of Article 8.2 of the AGTA apply.  

2.2.3The provisions of the Boeing Warranty in Part 2 of Exhibit C of the AGTA apply.  

2.2.4Customer will pay Boeing for requested work not covered by the Boeing Warranty, if any.  

2.2.5The DISCLAIMER AND RELEASE and EXCLUSION OF CONSEQUENTIAL AND OTHER DAMAGES provisions in Article 11 of Part 2 and Article 3.8 of Part 6 of Exhibit C of the AGTA apply.  

2.3Boeing may, at Customer's request, provide services other than those described in Articles 2.1 and 2.2 of this Supplemental Exhibit CS1 for an Aircraft after delivery, which may include, but not be limited to, retrofit kit changes (kits and/or information), training, flight services, maintenance and repair of Aircraft (Additional Services).  Such Additional Services will be subject to a mutually acceptable price, schedule, scope of work and other applicable terms and conditions.  The DISCLAIMER AND RELEASE and the EXCLUSION OF CONSEQUENTIAL AND OTHER DAMAGES provisions in Article 11 of Part 2 of Exhibit C of the AGTA and the insurance provisions in Article 8.2 of the AGTA will apply to any such work.  Title to and risk of loss of any such Aircraft will always remain with Customer.

 

 

787CUSTOMER SUPPORT DOCUMENT

PART 3:TECHNICAL INFORMATION AND MATERIALS

 

1.General.

Materials are defined as any and all items that are created by Boeing or a third party, which are provided directly or indirectly from Boeing and serve primarily to contain, convey or embody information.  Materials may include either tangible embodiments (for example, documents or drawings), or intangible embodiments (for example, software and other electronic forms) of information but excludes Aircraft Software.  Aircraft Software is defined as software that is installed on and used in the operation of the Aircraft. 

Customer Information is defined as that data provided by Customer to Boeing which falls into one of the following categories: (i) aircraft operational information (including, but not limited to, flight hours, departures, schedule reliability, engine hours, number of aircraft, aircraft registries, landings, and daily utilization and schedule interruptions for Boeing model aircraft); (ii) summary and detailed shop findings data; (iii) aircraft readiness log data; (iv) non-conformance reports; (v) line maintenance data; (vi) airplane message data, (vii) scheduled maintenance data, and (viii) service bulletin incorporation.

Upon execution by Customer of Boeing's standard form Customer Services General Terms Agreement and Supplemental Agreement for Electronic Access Boeing will provide to Customer through electronic access certain Materials to support the maintenance and operation of the Aircraft.  Such Materials will, if applicable, be prepared generally in accordance with Air Transport Association of America (ATA) iSpec 2200, entitled "Specification for Manufacturers" Technical Data."  Materials not covered by iSpec 2200 will be provided in a structure suitable for the Material's intended use.  Materials will be in English and in the units of measure used by Boeing to manufacture an Aircraft.

2.Materials Planning Conferences.  

Customer and Boeing will conduct planning conferences approximately [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] before the scheduled delivery month of the first Aircraft in order to mutually determine (i) the Materials to be furnished to Customer in support of the Aircraft, (ii) the Customer Information to be furnished by Customer to Boeing, (iii) the update cycles of the Materials to be furnished to Customer, (iv) the update cycles of the Customer Information to be furnished to Boeing, (v) any Customer preparations necessary for Customer's transmittal of Customer Information to Boeing, and (vi) any Customer preparations necessary for Customer's electronic access to the Materials. 

3.Technical Data and Maintenance Information.

Boeing will provide technical data and maintenance information equivalent to that traditionally provided in the following manuals and documents.  The format for this data and information is not yet determined in all cases.  Whenever possible Boeing will provide such data and information through electronic access.

a)Flight Operations Information.
Airplane Flight Manual

Operations Manual and Checklist

Planning and Performance Manual

Weight and Balance Manual

Dispatch Deviation Procedures Guide and Master Minimum Equipment List

Flight Crew Training Manual

Fault Reporting Manual

Performance Engineer's Manual

Jet Transport Performance Methods

FMC Supplemental Data Document

Operational Performance Software

ETOPS Guide Vol. III

Flight Planning and Performance Manual

b)Maintenance Information.
Maintenance Manual

Wiring Diagram Manual

Systems Schematics Manual

Structural Repair Manual

Component Maintenance Manual

Standard Overhaul Practices Manual

Standard Wiring Practices Manual

Non-Destructive Test Manual

Service Bulletins and Index

Corrosion Prevention Manual

Fault Isolation Manual

Power Plant Buildup Manual (except Rolls Royce)

In Service Activity Report

All Operators Letters

Service Letters

Structural Item Interim Advisory

Combined Index

Maintenance Tips

Configuration Data Base Generator User Guide

Production Management Data Base

Baggage/Cargo Loading Manual

	Maintenance Planning.

Maintenance Review Board Report
Maintenance Planning Data Document

Maintenance Task Cards and Index

Maintenance Inspection Intervals Report

ETOPS Guide Vol. II

Configuration Maintenance and Procedures for Extended Range Operations

d)Spares Information.
Illustrated Parts Catalog

Standards Books

e)Airplane & Airport Information.
Facilities and Equipment Planning Document

Special Tool & Ground Handling Equipment Drawings & Index

Supplementary Tooling Documentation

Illustrated Tool and Equipment List/Manual

Aircraft Recovery Document

Airplane Characteristics for Airport Planning Document

Airplane Rescue and Fire Fighting Document

Engine Ground Handling Document

ETOPS Guide Vol. I

f)Shop Maintenance.
Service Bulletins

Component Maintenance Manuals and Index

Publications Index

Product Support Supplier Directory

Supplier Product Support and Assurance Agreements

g)Fleet Statistical Data and Reporting.
Fleet Message and Fault Data views, charts, and reports

4.Advance Representative Materials.

Boeing will select all advance representative Materials from available sources and whenever possible will provide them through electronic access.   Such advance Materials will be for advance planning purposes only.

5.Customized Materials.

All customized Materials will reflect the configuration of each Aircraft as delivered.

6.Revisions.

6.1The schedule for updating certain Materials will be identified in the planning conference.  Such updates will reflect changes to Materials developed by Boeing.  

6.2If Boeing receives written notice that Customer intends to incorporate, or has incorporated, any Boeing service bulletin in an Aircraft, Boeing will update Materials reflecting the effects of such incorporation into such Aircraft.

7.Supplier Technical Data.

7.1For supplier-manufactured programmed airborne avionics components and equipment classified as Seller Furnished Equipment (SFE) or Seller Purchased Equipment (SPE) or Buyer Designated Equipment (BDE) which contain computer software designed and developed in accordance with Radio Technical Commission for Aeronautics Document No. RTCA/DO-178 dated January 1982, No. RTCA/DO-178A dated March 1985, or later as available, Boeing will request that each supplier of the components and equipment make software documentation available to Customer. 

7.2The provisions of this Article will not be applicable to items of BFE.

7.3Boeing will furnish to Customer a document identifying the terms and conditions of the product support agreements between Boeing and its suppliers requiring the suppliers to fulfill Customer's requirements for information and services in support of the Aircraft.

8.Buyer Furnished Equipment Data.

Boeing will incorporate BFE line maintenance information into the customized Materials providing Customer makes the information available to Boeing at least six (6) months prior to the scheduled delivery month of each Aircraft.  Boeing will incorporate such BFE line maintenance information into the Materials prior to delivery of each Aircraft reflecting the configuration of that Aircraft as delivered. Upon Customer's request, Boeing may provide update service after delivery to such information subject to the terms of Part 2, Article 2.3 relating to Additional Services.  Customer agrees to furnish all BFE line maintenance information in Boeing's standard digital format.

9.Customer's Shipping Address.

From time to time Boeing may furnish certain Materials or updates to Materials by means other than electronic access.  Customer will specify a single address and Customer shall promptly notify Boeing of any change to that address.  Boeing will pay the reasonable shipping costs of the Materials.  Customer is responsible for any customs clearance charges, duties, and taxes.

787 CUSTOMER SUPPORT DOCUMENT

PART 4:ALLEVIATION OR CESSATION OF PERFORMANCE

 

Boeing will not be required to provide any Materials, services, training or other things at a facility designated by Customer if any of the following conditions exist and those conditions would prevent Boeing from performing its services or make the performance of such services impracticable or inadvisable:

1.a labor stoppage or dispute in progress involving Customer;

2.wars or warlike operations, riots or insurrections in the country where the facility is located;

3.any condition at the facility which, in the opinion of Boeing, is detrimental to the general health, welfare or safety of its personnel or their families;

4.the United States Government refuses permission to Boeing personnel or their families to enter into the country where the facility is located, or recommends that Boeing personnel or their families leave the country; or

5.the United States Government refuses permission to Boeing to deliver Materials, services, training or other things to the country where the facility is located.

After the location of Boeing personnel at the facility, Boeing further reserves the right, upon the occurrence of any of such events, to immediately and without prior notice to Customer relocate its personnel and their families.  

 

 

787 CUSTOMER SUPPORT DOCUMENT

PART 5:PROTECTION OF PROPRIETARY INFORMATION

AND PROPRIETARY MATERIALS

 

1.General.

All Materials provided by Boeing to Customer and not covered by a Boeing CSGTA or other agreement between Boeing and Customer defining Customer's right to use and disclose the Materials and included information will be covered by and subject to the terms of the AGTA as amended by the terms of the Purchase Agreement.  Title to all Materials containing, conveying or embodying confidential, proprietary or trade secret information (Proprietary Information) belonging to Boeing or a third party (Proprietary Materials), will at all times remain with Boeing or such third party.  Customer will treat all Proprietary Materials and all Proprietary Information in confidence and use and disclose the same only as specifically authorized in the AGTA as amended by the terms of the Purchase Agreement, or the CSGTA, and except to the extent required by law.

2.License Grant.

2.1Boeing grants to Customer a perpetual worldwide, non-exclusive, non-transferable license to use and disclose Proprietary Materials in accordance with the terms and conditions of the AGTA as amended by the terms of the Purchase Agreement.  Customer is authorized to make copies of Materials (except for Materials bearing the copyright legend of a third party), and all copies of Proprietary Materials will belong to Boeing and be treated as Proprietary Materials under the AGTA as amended by the terms of the Purchase Agreement.  Customer will preserve all proprietary legends, and all copyright notices on all Materials and insure the inclusion of those legends and notices on all copies.

2.2Customer grants to Boeing a perpetual, world-wide, non-exclusive, non-transferable license to use and disclose Customer Information or derivative works thereof in Boeing data and information products and services provided indicia identifying Customer Information as originating from Customer is removed from such Customer Information.

3.Use of Proprietary Materials and Proprietary Information.

Customer is authorized to use Proprietary Materials and Proprietary Information for the purpose of: (a) operation, maintenance, repair, or modification of Customer's Aircraft for which the Proprietary Materials and Proprietary Information have been specified by Boeing and (b) development and manufacture of training devices and maintenance tools for use by Customer.

4.Providing of Proprietary Materials to Contractors.

Customer is authorized to provide Proprietary Materials to Customer's contractors for the sole purpose of maintenance, repair, or modification of Customer's Aircraft for which the Proprietary Materials have been specified by Boeing.  In addition, Customer may provide Proprietary Materials to Customer's contractors for the sole purpose of developing and manufacturing training devices and maintenance tools for Customer's use.  Before providing Proprietary Materials to its contractor, Customer will first obtain a written agreement from the contractor by which the contractor agrees (a) to use the Proprietary Materials only on behalf of Customer, (b) to be bound by all of the restrictions and limitations of this Part 5, and (c) that Boeing is a third party beneficiary under the written agreement.  Customer agrees to provide copies of all such written agreements to Boeing upon request.  A sample agreement acceptable to Boeing is attached as Appendix VII to the AGTA.  

5.Providing of Proprietary Materials and Proprietary Information to Regulatory Agencies.

5.1When and to the extent required by a government regulatory agency having jurisdiction over Customer or an Aircraft, Customer is authorized to provide Proprietary Materials and to disclose Proprietary Information to the agency for use in connection with Customer's operation, maintenance, repair, or modification of such Aircraft.  Customer agrees to take all reasonable steps to prevent the agency from making any distribution, disclosure, or additional use of the Proprietary Materials and Proprietary Information provided or disclosed.  Customer further agrees to notify Boeing immediately upon learning of any (a) distribution, disclosure, or additional use by the agency, (b) request to the agency for distribution, disclosure, or additional use, or (c) intention on the part of the agency to distribute, disclose, or make additional use of Proprietary Materials or Proprietary Information.

5.2In the event of an Aircraft or Aircraft systems-related incident, the Customer may suspend, or block access to Customer Information pertaining to its Aircraft or fleet.  Such suspension may be for an indefinite period of time.

 

March 12, 2007

6-1162-MSA-546R3

 

 

Continental Airlines, Inc.

1600 Smith Street

Houston, Texas  77002

 

Subject:Open Configuration Matters

Reference:Purchase Agreement No. 2484 (the Purchase Agreement) 
between The Boeing Company (Boeing) and Continental

Airlines, Inc. (Customer) relating to Model 787 aircraft (the Aircraft)

Ladies and Gentlemen:

 

This Letter Agreement amends and supplements the Purchase Agreement.  All terms used and not defined in this Letter Agreement have the same meaning as in the Purchase Agreement.  This Letter Agreement supersedes and replaces in its entirety Letter Agreement 6-1162-MSA-546R2 dated, May 3, 2006.

1.Aircraft Configuration.

Due to the developing design of the 787 Aircraft and the long period of time between the Purchase Agreement signing and delivery of Customer's first Aircraft, the configuration of Customer's Aircraft has not yet been defined.  The parties agree to complete defining the configuration of the Aircraft no later than [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT], using the configuration elements defined in 787 Airplane Description and Selections Document Number 787B1-0227, which includes available Optional Features for selection (Configuration). 

2.Effect on Purchase Agreement.

By [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT], Boeing will provide Customer a written amendment to the Purchase Agreement reflecting the Configuration, including, without limitation, the effects of the Configuration on those portions of the Purchase Agreement described in Articles 2.1 through 2.4, below.  In advance of the final Configuration by [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT], the parties agree to the following advanced configuration releases:

	Preliminary Configuration - LOPA YS5509 dated 10/4/04, used to define a preliminary Performance Guarantees release (reference Article 2.3 below).  This has been completed per Supplemental Agreement No. 1 to the Purchase Agreement.

	Interim Configuration - to be released by September 2006, used to define the final Performance Guarantees release (reference Article 2.3 below) and update the pricing (reference Article 2.4 below).  

	Final Configuration - to be released after September 2007, used to reflect Customer's actual configuration and reflect final build of the Aircraft.  LOPA used to define a preliminary Performance Guarantee will also be used to define the final Performance Guarantee - per Supplemental Agreement No. 5.

2.1Exhibit A.  The Configuration will be incorporated into Exhibit A of the Purchase Agreement.

2.2Basic Specification.  Changes applicable to the basic Model 787 aircraft which are developed by Boeing between the date of signing of the Purchase Agreement and completion of the Configuration will be incorporated into Exhibit A of the Purchase Agreement.

2.3[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].  Boeing will provide to Customer revisions to Letter Agreement 6-1162-MSA-551, [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] to reflect the effects of the Configuration, if any, on [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT].  

2.4Price Adjustments.  The Aircraft Basic Price and Advance Payment Base Price of each Aircraft set forth on Table 1 to the Purchase Agreement is based in part on an estimate of the value of the Optional Features and any related Seller Purchased Equipment.  The Aircraft Basic Price and the Advance Payment Base Price of each Aircraft will be adjusted as required and agreed by the parties in a supplemental agreement to the Purchase Agreement to reflect the difference between such estimate and the actual price of such elements of the Configuration.

	Other Letter Agreements.

Boeing and Customer acknowledge that as the definition of the Aircraft progresses, there will be a need to execute letter agreements addressing one or more of the following subjects:

3.1Customer Software.  Additional provisions relating to the loading of software owned by or licensed to Customer on the Aircraft at delivery.  

3.2Installation of Cabin Systems Equipment.  Additional provisions relating to the terms on which Boeing will offer and install in-flight entertainment systems and cabin communications systems in the Aircraft. 

3.3Buyer Furnished Equipment (BFE) and Seller Purchased Equipment (SPE).  Provisions relating to the terms on which Boeing may offer or install BFE and SPE in the Aircraft.  

3.4Onboard Broadband Offering.  Provisions relating to the terms under which Boeing may offer or install an Onboard Broadband Aircraft Health and Information System in the Aircraft (originally envisioned as a Connexion by Boeing product).  

 

Very truly yours,

THE BOEING COMPANY

 

 

By:   /s/ Anthony J. Hicker

Its    Attorney-In-Fact                       

 

ACCEPTED AND AGREED TO

Date: March 12, 2007

CONTINENTAL AIRLINES, INC.

 

 

By:    /s/ Gerald Laderman

Its__ Senior Vice President - Finance and Treasurer

 

 

March 12, 2007

6-1162-MSA-547R4

 

Continental Airlines, Inc.

1600 Smith Street

Houston, TX 77002

 

 

Subject:Option Aircraft

Reference:Purchase Agreement 2484 (the Purchase Agreement) between The Boeing Company (Boeing) and Continental Airlines, Inc. (Customer) relating to Model 787 aircraft (the Aircraft)

 

Ladies and Gentlemen:

This Letter Agreement amends and supplements the Purchase Agreement.  This Letter Agreement supersedes and replaces in its entirety Letter Agreement 6-1162-MSA-547R3 dated July 14, 2006.  All terms used but not defined in this Letter Agreement have the same meaning as in the Purchase Agreement.

Boeing agrees to manufacture and sell to Customer up to [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] additional Model 787-8 or Model 787-9 aircraft as Option Aircraft.  The model, delivery months, number of aircraft, Advance Payment Base Price per aircraft and advance payment schedule are listed in Attachment A and Attachment B to this Letter Agreement (the Attachments).

1.Aircraft Description and Changes

1.1 Aircraft Description:  The Option Aircraft are described by the Detail Specification listed in the Attachment, and subject to the items in section 1.2 below.

1.2Changes:  The Detail Specification will be revised to include:

(i) Changes applicable to the basic Model 787 aircraft which are developed by Boeing between the date of the Detail Specification and the signing of the definitive agreement to purchase the Option Aircraft;

(ii) Changes required to obtain required regulatory certificates; and

(iii) Changes mutually agreed upon.

2.Price

2.1The pricing elements of the Option Aircraft are listed in the Attachment.

2.2Price Adjustments.

2.2.1Optional Features.  The Optional Features Prices selected for the Option Aircraft will be adjusted to Boeing's current prices as of the date of execution of the definitive agreement for the Option Aircraft.

2.2.2Escalation Adjustments.  The Airframe Price and the Optional Features Prices for Option Aircraft will be escalated on the same basis as the Aircraft, and will be adjusted to Boeing's then-current escalation provisions as of the date of execution of the definitive agreement for the Option Aircraft.

The engine manufacturer's current escalation provisions, listed in Exhibit Supplement EE1 to the Purchase Agreement, have been estimated to the months of scheduled delivery using commercial forecasts to calculate the Advance Payment Base Price listed in the Attachment to this Letter Agreement.  The engine escalation provisions will be revised if they are changed by the engine manufacturer prior to the signing of a definitive agreement for the Option Aircraft.

2.2.3Base Price Adjustments.  The Airframe Price and the Engine Price of the Option Aircraft will be adjusted to Boeing's and the engine manufacturer's then current prices as of the date of execution of the definitive agreement for the Option Aircraft.

3.Payment.

3.1Customer will pay a deposit to Boeing in the amount shown in the Attachments for each Option Aircraft (Option Deposit), on the date of this Letter Agreement.  If Customer exercises an option, the Option Deposit will be credited against the first advance payment due.  If Customer does not exercise an option, Boeing will retain the Option Deposit for that Option Aircraft.

3.2If Customer exercises its option to acquire an Option Aircraft, advance payments in the amounts and at the times listed in the Attachment will be payable for that Option Aircraft.  The remainder of the Aircraft Price for that Option Aircraft will be paid at the time of delivery.

4.Option Exercise.

4.1For Option Aircraft delivering in 2010 and 2011, Customer may exercise an option to acquire an Option Aircraft by giving written notice to Boeing on or before the date [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] months prior to the first business day of the applicable delivery month listed in the Attachments (Option Exercise Date).  

4.2For Option Aircraft delivering after 2011, Customer may exercise an option to acquire an Option Aircraft by giving written notice to Boeing on or before the date 18 months prior to the first business day of the Option Exercise Date.

5.Contract Terms.

Boeing and Customer will use their best efforts to reach a definitive agreement for the purchase of an Option Aircraft, including the terms and conditions contained in this Letter Agreement, in the Purchase Agreement, and other terms and conditions as may be agreed upon to add the Option Aircraft to the Purchase Agreement as an Aircraft.  If the parties have not entered into a definitive agreement within 30 days following option exercise, either party may terminate the purchase of such Option Aircraft by giving written notice to the other within 5 days.  [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

 

Very truly yours,

THE BOEING COMPANY

 

 

By:    /s/ Anthony J. Hicker 

Its    Attorney-In-Fact                       

 

ACCEPTED AND AGREED TO 

Date: March 12, 2007

CONTINENTAL AIRLINES, INC.

 

 

By:    /s/ Gerald Laderman 

Its__ Senior Vice President - Finance and Treasurer

 

Attachments

 

Attachment A to

Option Aircraft Letter Agreement 6-1162-MSA-547R4

Option Aircraft Delivery, Description, Price and Advance Payments

(787-8 / [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] / 2006$s / [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT])

 

[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

Attachment B to

Option Aircraft Letter 6-1162-MSA-547R4

Option Aircraft Delivery, Description, Price and Advance Payments

(787-9 / [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] / 2006$s / [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT])

 

[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

Attachment B to

Option aircraft Letter 6-1162-MSA-547R4

Option Aircraft Delivery, Description, Price and Advance Payments

(787-9 / [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] / 2006$s / [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT])

 

[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

March 12, 2007

6-1162-MSA-551R2

 

 

Continental Airlines, Inc.

1600 Smith Street

Houston, Texas  77002

 

Subject:[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

Reference:Purchase Agreement No. 2484 (the Purchase Agreement)
between The Boeing Company (Boeing) and Continental

Airlines, Inc. (Customer) relating to Model 787 aircraft (the Aircraft)

Ladies and Gentlemen:

This Letter Agreement amends and supplements the Purchase Agreement.  This Letter Agreement supersedes and replaces in its entirety Letter Agreement 6-1162-MSA-551R1 dated January 20, 2006.  All terms used and not defined in this Letter Agreement have the same meaning as in the Purchase Agreement.  

[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

Boeing and Customer understand that certain information contained in this Letter Agreement, including any attachments hereto, is considered by both parties to be confidential.  Boeing and Customer agree that each party will treat this Letter Agreement and the information contained herein as confidential and will not, without the other party's prior written consent, disclose this Letter Agreement or any information contained herein to any other person or entity except as may be required by applicable law or governmental regulations.

 

Very truly yours,

THE BOEING COMPANY

 

 

By:    /s/ Anthony J. Hicker

Its    Attorney-In-Fact                       

 

ACCEPTED AND AGREED TO 

Date: March 12, 2007

CONTINENTAL AIRLINES, INC.

 

 

By:    /s/ Gerald Laderman 

Its__ Senior Vice President - Finance and Treasurer

 

 

 

 

 

 

[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

 

March 12, 2007

6-1162-MSA-552R5

 

 

Continental Airlines, Inc.

1600 Smith Street

Houston, Texas  77002

 

Subject:Special Matters

Reference:Purchase Agreement No. 2484 (the Purchase Agreement)
between The Boeing Company (Boeing) and Continental

Airlines, Inc. (Customer) relating to Model 787 aircraft (the Aircraft)

Ladies and Gentlemen:

This Letter Agreement amends and supplements the Purchase Agreement.  This Letter Agreement supersedes and replaces in its entirety Letter Agreement 6-1162-MSA-552R4 dated July 14, 2006. All terms used and not defined in this Letter Agreement have the same meaning as in the Purchase Agreement.

1.[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

2.[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

3.[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

4.[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

5.[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

6.Option Aircraft.  [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

7.[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

8.[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

9.Aircraft Invoices.

Upon Customer request, at the time of Aircraft delivery Boeing agrees to provide a separate invoice addressed to the owner/trustee of such Aircraft specifying the dollar amount to be received at the time of delivery.  [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

10.[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

11.[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

12.[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

13.Confidential Treatment.

Boeing and Customer understand that certain information contained in this Letter Agreement, including any attachments hereto, is considered by both parties to be confidential.  Boeing and Customer agree that each party will treat this Letter Agreement and the information contained herein as confidential and will not, without 

the other party's prior written consent, disclose this Letter Agreement or any information contained herein to any other person or entity except as may be required by applicable law or governmental regulations.

 

Very truly yours,

THE BOEING COMPANY

 

 

By:   /s/ Anthony J. Hicker

Its    Attorney-In-Fact                       

 

ACCEPTED AND AGREED TO 

Date: March 12, 2007

CONTINENTAL AIRLINES, INC.

 

 

By:   /s/ Gerald Laderman

Its__ Senior Vice President - Finance and Treasurer

March 12, 2007

6-1162-MSA-554R3

Continental Airlines, Inc.

1600 Smith Street

Houston, Texas  77002

 

Subject:[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

Reference:Purchase Agreement No. 2484 (the Purchase Agreement)
between The Boeing Company (Boeing) and Continental

Airlines, Inc. (Customer) relating to Model 787 aircraft (the Aircraft)

Ladies and Gentlemen:

This Letter Agreement amends and supplements the Purchase Agreement.  This Letter Agreement supersedes and replaces in its entirety Letter Agreement 6-1162-MSA-554R2 dated May 3, 2006.  All terms used and not defined in this Letter Agreement have the same meaning as in the Purchase Agreement.  

1.[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

2.[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

3.Confidential Treatment.

Boeing and Customer understand that certain information contained in this Letter Agreement, including any attachments hereto, is considered by both parties to be confidential.  Boeing and Customer agree that each party will treat this Letter Agreement and the information contained herein as confidential and will not, without the other party's prior written consent, disclose this Letter Agreement or any information contained herein to any other person or entity except as may be required by applicable law or governmental regulations.

 

 

Very truly yours,

THE BOEING COMPANY

 

 

By:    /s/ Anthony J. Hicker

Its    Attorney-In-Fact                       

 

ACCEPTED AND AGREED TO

Date: March 12, 2007

CONTINENTAL AIRLINES, INC.

 

 

By:   /s/ Gerald Laderman

Its__ Senior Vice President - Finance and Treasurer

Attachments

 

Attachment A to

Model Substitution Letter 6-1162-MSA-554R3

Price

(787-9 / [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] / 2006$s / [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT])

 

[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT]

Attachment B to

Model Substitution Letter Agreement 6-1162-MSA-554R4

Price

(787-10 / [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] / 2006$s)

 

[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENTEXHIBIT 10-1: BRODIE SEVERANCE AGREEMENT

     

    
      

      

    

    EXHIBIT
      10.1

    SEVERANCE
      AGREEMENT AND RELEASE

    

    This
      Severance Agreement and Release (“Severance Agreement”) is executed this
      17th
      day of
April,
      2007, by
      and between Howard W. Brodie (“Employee”) who resides at 123 West 93rd
      St., New
      York, New York and Emcore Corporation (“Emcore” or the “Company”). Employee and
      Emcore shall sometimes be referred to herein as the “Parties” and shall
      sometimes be referred to individually as “Party.”

    

    1. Employee’s
      employment is terminated effective April 27, 2007. 

    

    2.
      (a) On
      October 31, 2007, Emcore shall pay to Employee 68 weeks of his salary in a
      lump-sum payment plus an amount equal to 68 weeks of Employee’s automobile,
      garage and auto insurance expenses (“Severance”). The total Severance, which
      will be paid to Employee, is equal to $313,939 ($292,400 +$21,539), less
      applicable tax withholdings and deductions.

     

    (b) In
      accordance with the Company’s health plans, Employee will be eligible to
      exercise his rights to continued health insurance coverage for Employee, and,
      where applicable, Employee’s spouse and eligible dependents, at Employee’s
      expense (subject to the foregoing), upon termination of the Employee’s
      employment pursuant to the Consolidated Omnibus Budget Reconciliation Act of
      1985 (“COBRA”), as amended. To the extent Employee elects COBRA continuation
      coverage, the Company shall continue to pay the employer’s portion of the COBRA
      premiums for the period of time that Employee is eligible for COBRA continuation
      coverage, up to a maximum of 68 weeks, equal to the amount that the Company
      would have otherwise paid for health insurance coverage if Employee were an
      active employee during such time. Up until the Severance payment is made, the
      Company will also pay Employee’s portion of the COBRA premiums, the total of
      which shall then be deducted from the Severance payment. After the Severance
      payment is made, Employee shall be responsible for paying Employee’s portion of
      COBRA premiums. Nothing herein shall be construed as extending or delaying
      the
      start date of the COBRA coverage period for Employee.

    

    All
      voluntary payroll deductions, including but not limited to 401(k), ESPP and
      term
      life, will cease effective the date of termination. 

     

    (c) If
      Employee is rehired by Emcore, Emcore shall no longer be obligated to make
      any
      severance payment under Paragraph 2(a) above that would otherwise be due and
      owing after the effective date of employee's rehiring. Employee acknowledges
      and
      agrees that the cessation of severance payments under this provision shall
      not
      affect the validity or enforceability of Paragraph 5 of this
      Agreement.

     

    (d) Emcore
      shall pay Employee $55,341, less applicable tax withholdings and deductions,
      representing the amount earned by Employee under EMCORE’s 2006 Executive Cash
      Bonus Plan on the earlier to occur of (x) payment of the cash bonus under the
      2006 Executive Cash Bonus Plan to the CEO and (y) October 31, 2007.

     

    (e) Emcore
      will also reimburse Employee for all business expenses incurred by Employee
      through April 27, 2007 within thirty days of receipt of Employee’s expense
      report.

     

    3. Employee
      agrees and acknowledges that the payments and benefits provided for in Paragraph
      2 exceed any benefits to which he or she would otherwise be entitled under
      any
      policy, plan, and/or procedure of Emcore or any agreement with Emcore. Employee
      agrees and acknowledges that the payment of Severance (or any other payments
      hereunder) shall not be construed as a guarantee of any particular tax treatment
      for such payment. Except for the Severance and benefits set forth in Paragraph
      2, Employee acknowledges that Employee
      has received all wages, bonuses, salaries, fees, vacation pay, benefits or
      any
      other form of compensation to which Employee was entitled.

    

    4. Employee
      shall have twenty-one (21) days from the date of his receipt of this Agreement
      to consider the terms and conditions of the Agreement. Employee may accept
      this
      Agreement by signing and returning it to Ms. Monica Van Berkel, Vice President,
      Human Resources, Emcore Corporation, or her successor to 2015 W. Chestnut
      Street, Alhambra, CA 91803, no later than 5:00 p.m. on the twenty-first (21st)
      day after Employee’s receipt of this Agreement (“Agreement and Release Return
      Date”). Thereafter, Employee will have seven (7) days to revoke this Agreement
      by stating his desire to do so in writing to Ms. Van Berkel or her successor
      at
      the address listed above, and delivering it to Ms. Van Berkel or her successor
      no later than 5:00 p.m. on the seventh (7th) day following the date Employee
      signs this Agreement. The effective date of this Agreement shall be the (8th)
      day following Employee’s signing of this Agreement (the “Release Effective
      Date”), provided the Employee does not revoke the Agreement during the
      revocation period described above. In the event Employee does not accept this
      Agreement as set forth above, or in the event Employee revokes this Agreement
      during the revocation period, this Agreement, including but not limited to
      the
      obligation of Emcore and its subsidiaries and affiliates to provide the payments
      and benefits referred to in Paragraph 2 above, shall automatically be deemed
      null and void. 

    

    5. (a) In
      consideration of the payments and benefits referred to in Paragraph 2, Employee
      for himself and on behalf of his heirs, executors, and assigns (hereinafter
      collectively referred to as the “Releasors”), forever releases and discharges
      Emcore and any and all of its parent corporations, subsidiaries, divisions,
      affiliated entities, predecessors, successors and assigns, and any and all
      of
      its or their employee benefit and/or pension plans or funds, and any of its
      or
      their past or present officers, directors, stockholders, agents, trustees,
      administrators, employees or assigns (whether acting as agents for such entities
      or in their individual capacities) (hereinafter collectively referred to as
      “Releasees”), from any and all claims, demands, causes of action, fees and
      liabilities of any kind whatsoever (based upon any legal or equitable theory,
      whether contractual, common-law, statutory, decisional, federal, state, local
      or
      otherwise), whether known or unknown, which Releasors ever had, now have or
      may
      have against Releasees by reason of any actual or alleged act, omission,
      transaction, practice, conduct, occurrence, or other matter from the beginning
      of the world up to and including the Release Effective Date relating to or
      arising from Employee’s employment with the Company or the termination thereof;
      provided, however, that Releasors do not release Emcore from any defense,
      indemnification or reimbursement obligation that Emcore has or may have to
      Employee by law, under Emcore’s By-Laws or under any insurance policy in effect
      including, but not limited to, by reason of Employee’s (i) performance of his
      duties as General Counsel, Chief Legal Officer, Secretary or executive officer
      of Emcore, (ii) conduct in connection with the granting and accounting for
      stock
      options or investigation and analysis of past stock option grant practices,
      or
      (iii) any post-employment consulting arrangements that Employee may provide
      to
      Emcore; and provided further that Releasors do not release Releasees from any
      breaches of this Agreement.

     

    (b)
       Without
      limiting the generality of the foregoing subparagraph (a), this Agreement is
      intended to and shall release the Releasees from any and all claims arising
      out
      of Employee’s employment with the Company and/or the termination of Employee’s
      employment, including but not limited to any claim(s) under or arising out
      of
      (i) the Age Discrimination in Employment Act, as amended, or the Older Workers
      Benefit Protection Act; (ii) Title VII of the Civil Rights Act of 1964, as
      amended; (iii) the Americans with Disabilities Act, as amended; (iv) the
      Employee Retirement Income Security Act of 1974, as amended (“ERISA”) (excluding
      claims for accrued, vested benefits under any employee benefit plan of Emcore
      in
      accordance with the terms of such plan and applicable law); (v)  the New
      Mexico Human Rights Act; (vi) the California Fair Employment and Housing Act;
      (vii) the California Equal Pay Law; (viii) the California Sexual Orientation
      Bias Law; (ix) the California Labor and Government Codes; (x) the California
      Unruh Act; (xi) the New Jersey Law Against Discrimination, the New Jersey Equal
      Pay Act, the New Jersey Family Leave Act; (xii) the Illinois Human Rights Act;
      (xiii) the Virginia Human Rights Act; (xiv) the Pennsylvania Human Relations
      Act; (xv) alleged discrimination or retaliation in employment (whether based
      on
      federal, state or local law, statutory or decisional); (xvi) the terms and
      conditions of Employee’s employment with Emcore, the termination of such
      employment, and/or any of the events relating directly or indirectly to or
      surrounding that termination; and (xvii) any law (statutory or decisional)
      providing for attorneys’ fees, costs, disbursements and/or the
      like.

     

    (c) As
      a
      further consideration and inducement for this Agreement, to the extent permitted
      by law, Employee hereby waives and releases any and all rights under Section
      1542 of the California Civil Code or any analogous state, local, or federal
      law,
      statute, rule, order or regulation that Employee has or may have with respect
      to
      the Releasees. California Civil Code Section 1542 reads as follows:

    

    A
      GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW
      OR
      SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
      KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
      DEBTOR.

    

    Employee
      hereby expressly agrees that this Agreement shall extend and apply to all
      unknown, unsuspected and unanticipated injuries and damages, as well as any
      that
      are now disclosed, arising prior to Employee’s execution of this Agreement.
This
      release does not extend to those rights, which as a matter of law cannot be
      waived, including but not limited to unwaivable rights Employee may have under
      the California Labor Code. Nothing in this Agreement shall limit Employee’s
      right to file a charge or complain with any state or federal agency or to
      participate or cooperate in such a manner. In the event that any claim or suit
      is brought on behalf of Employee, Employee waives any and all rights to receive
      monetary damages or injunctive relief in his favor.

    

    6. (a) Employee
      agrees that he has not and will not engage in any conduct that is injurious
      to
      Emcore’s or Releasee’s reputation or interest, including but not limited to, (i)
      divulging, communicating, or in any way making use of any confidential or
      proprietary information acquired in the performance of his duties at Emcore,
      except as required by law, or (ii) publicly disparaging (or inducing or
      encouraging others to publicly disparage) Emcore or Releasees.

                (b) Employee
      agrees to return to Emcore any and all originals of documents, materials,
      records or other items in his possession or control belonging to Emcore or
      containing proprietary information relating to Emcore, but may retain copies
      thereof for archival and legal defense purposes. Employee agrees to remove
      all
      Emcore proprietary information from his laptop. Employee shall be permitted
      to
      retain his laptop computer and cell phone. Emcore shall continue to pay
      Employee’s cell phone charges until April 27, 2007.

                

                (c) Employee
      acknowledges that the terms of the Confidentiality and Invention Assignment
      Agreement (“Confidentiality Agreement”) between Employee and Emcore signed by
      the Employee during his employment, remains in full force and effect, and
      Employee agrees and acknowledges that he is bound by its terms. Without limiting
      the generality of the foregoing, Emcore acknowledges that pursuant to N.J.
      Advisory Committee on Professional Ethics Opinion 708 (July 10, 2006) Employee
      is not bound by the non-compete and non-solicitation covenants contained in
      his
      Confidentiality Agreement. Employee understands and acknowledges that as counsel
      to Emcore and, where appropriate, affiliated entities (collectively, the
“Company”), Employee has owed ethical and fiduciary obligations to the Company.
      Employee further understands and acknowledges that some of these obligations
      will continue after Employee ceases to be employed by the Company and that
      these
      continuing obligations include, at a minimum, the duty to protect information
      relating to the representation of a client (sometimes referred to as the duty
      to
      protect former client confidences and secrets) and the duty to avoid former
      client conflicts of interest. Employee hereby represents that to the best of
      Employee’s ability, and in accordance with the Confidentiality Agreement,
      Employee will fully comply with all such obligations.

     

    7. (a) Employee
      will reasonably cooperate with Emcore and/or its subsidiaries and affiliates
      and
      its/their counsel in connection with any investigation, administrative
      proceeding or litigation relating to any matter in which Employee was involved
      or of which Employee has knowledge, including without limitation the filing
      of
      all Emcore’s periodic reports required by the Securities Exchange Act of 1934
      and completion of all matters related to the options investigation undertaken
      by
      the Special Committee of Emcore’s Board of Directors. Emcore will continue to
      indemnify, defend and reimburse Employee in accordance with the terms of
      Emcore’s By-Laws and insurance policies and will also compensate Employee for
      his reasonable travel and lodging expenses for any time that Employee is
      required to devote to such investigation, administrative proceeding or
      litigation. Emcore shall compensate Employee at the rate of $350/hour for any
      time that Employee is required to devote to such investigation, administrative
      proceeding or litigation. Employee will be released from this obligation as
      of
      September 30, 2007. All payments required by this Paragraph 7(a) shall be paid
      within 30 days of the date that Employee performs the relevant
      service.

     

    (b) Employee
      agrees that, in the event he is subpoenaed by any person or entity (including,
      but not limited to, any government agency) to give testimony (in a deposition,
      court proceeding or otherwise) which in any way relates to Employee’s employment
      with Releasees, he will give prompt notice of such request to Monica Van Berkel,
      Vice President, Human Resources, Emcore Corporation, or her successor, and
      will
      make no disclosure until Emcore has had a reasonable opportunity to contest
      the
      right of the requesting person or entity to such disclosure, unless Employee
      is
      legally compelled to make such disclosure and, in the opinion of Employee’s
      counsel, Employee would be prejudiced by not making such disclosure prior to
      Emcore exercising its rights to contest.

    

    8. The
      making of this Agreement is not intended, and shall not be construed, as an
      admission that Releasees or Releasors have violated any federal, state or local
      law (statutory or decisional), ordinance or regulation, breached any contract,
      or committed any wrong whatsoever.

    

    9. The
      parties agree that this Agreement may not be used as evidence in a subsequent
      proceeding except in a proceeding to enforce the terms of this
      Agreement.

    

    10. Employee
      acknowledges that: (a) he has carefully read this Agreement in its entirety;
      (b)
      he has had an opportunity to consider fully the terms of this Agreement;
      (c) he has been advised by Emcore in writing to consult with an attorney of
      his choosing in connection with this Agreement; (d) he fully understands the
      significance of all of the terms and conditions of this Agreement and he has
      discussed it with his independent legal counsel, or has had a reasonable
      opportunity to do so; (e) he has had answered to his satisfaction any questions
      he has asked with regard to the meaning and significance of any of the
      provisions of this Agreement; and (f) he is signing this Agreement voluntarily
      and of his own free will and assents to all the terms and condition contained
      herein.

     

    11. This
      Agreement is binding upon, and shall inure to the benefit of, the parties and
      their respective heirs, executors, administrators, successors and
      assigns.

    

    12. If
      any
      provision of this Agreement shall be held by a court of competent jurisdiction
      to be illegal, void, or unenforceable, such provision shall be of no force
      and
      effect. However, the illegality or unenforceability of such provision shall
      have
      no effect upon, and shall not impair the enforceability of, any other provision
      of this Agreement; provided, however, that, upon any finding by a court of
      competent jurisdiction that the release and covenants provided for by Paragraph
      5 of this Agreement is illegal, void, or unenforceable, Employee agrees to
      execute a release, waiver and/or covenant that is legal and enforceable. Emcore
      may seek appropriate relief in a court of competent jurisdiction, including,
      but
      not limited to, permanent or temporary injunctive relief against Employee,
      without the requirement of posting a bond or other security, for any material
      breach by Employee of Paragraph 6 and/or 7 of this Agreement.

    

    13. This
      Agreement shall be governed by, and construed and enforced in accordance with,
      the laws of the State of New Jersey, without regard to the conflict of laws
      provisions thereof.

    

    14. This
      Agreement (including the Exhibits attached hereto) constitute the complete
      understanding between the parties and supersede any and all agreements,
      understandings, and discussions, whether written or oral, between the parties.
      No other promises or agreements shall be binding unless in writing and signed
      after the Release Effective Date by the parties to be bound
      thereby.

    

    15. The
      Parties acknowledge that Section 409A of the Internal Revenue Code of 1986,
      as
      amended (“Section 409A”) imposes an additional tax (the “409A Tax”) on deferred
      compensation (as defined under Section 409A) that does not meet certain
      requirements, and that as of the date this Agreement is executed, final
      regulations implementing Section 409A have not been implemented. The Parties
      agree that it is not intended that the 409A Tax apply to any payment or the
      provision of any benefit hereunder, and accordingly, the provisions of this
      Paragraph 15 shall apply to any payment or benefit to which the 409A Tax would
      apply, regardless of whether such payment or benefit is explicitly made subject
      to this Paragraph 15. If any of the Parties reasonably determine that any
      payment or benefit permitted or required under this Agreement would result
      in
      409A Tax, and if such 409A Tax could be avoided by delaying the payment or
      postponing the provision of the benefit, the Parties agree to work in good
      faith
      to delay or postpone such payment or provision of the benefit until such time
      as
      it may be made or provided without the 409A Tax being imposed. If delay or
      postponement of a payment or the provision of a benefit would not avoid the
      imposition of the 409A Tax, then the Parties shall promptly agree in good faith
      on appropriate provisions to avoid such risk without materially changing the
      economic value of this Agreement to any Party.

    

    

    /s
      Howard
      Brodie 
      Date:
      April 17, 2007

    Howard
      W.
      Brodie       

    

    

    By: /s
      Reuben
      F. Richards, Jr.    Date:
      April 17, 2007

    Reuben
      F.
      Richards, Jr.

    Chief
      Executive Officer

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