Supplemental Agreement No. 93toPurchase Agreement No. 1810betweenTHE BOEING COMPANYandSOUTHWEST AIRLINES CO.Relating to Boeing Model 737-7H4 and 737-8H4 Aircraft

EX-10.1 2 luv-3312016xex101.htm EXHIBIT 10.1 Exhibit

Supplemental Agreement No. 93
 
to
 
Purchase Agreement No. 1810
 
between
 
THE BOEING COMPANY
 
and
 
SOUTHWEST AIRLINES CO.
 
Relating to Boeing Model 737-7H4 and 737-8H4 Aircraft

THIS SUPPLEMENTAL AGREEMENT No. 93 (SA-93) is entered into as of February 2, 2016, by and between THE BOEING COMPANY, a Delaware corporation with principal offices in Seattle, Washington (Boeing) and SOUTHWEST AIRLINES CO., a Texas corporation with principal offices in Dallas, Texas (Buyer).

RECITALS:

WHEREAS, Buyer and Boeing entered into Purchase Agreement No. 1810 dated January 19, 1994, as amended and supplemented (Purchase Agreement), relating to the purchase and sale of Boeing Model 737-7H4 aircraft (737-7H4 Aircraft) and 737-8H4 aircraft (737-8H4 Aircraft), collectively the “Aircraft”. This SA-93 is an amendment to and is incorporated into the Purchase Agreement. Capitalized terms used herein but not otherwise defined shall have the meaning set forth in the Purchase Agreement. The 737-7H4 Aircraft are also defined as “Block 700LUV Aircraft” and the 737-8H4 Aircraft as “Block 800LUV Aircraft”.

WHEREAS, Boeing and Buyer agree to amend the Purchase Agreement by revising the delivery month of two (2) Block 800LUV Aircraft as follows:

Prior Delivery Month
New Delivery Month
May-2017
December-2016
June-2017
December-2016

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

1.
TABLE OF CONTENTS.

The Table of Contents is deleted in its entirety and replaced by a new Table of Contents (attached), which lists the Tables and Letter Agreements revised by this SA-93

***Pursuant to 17 CFR 240.24b-2, confidential information has been omitted and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.

P.A. No. 1810
SA-93-1
 
 
BOEING PROPRIETARY
 



and is identified by “SA-93”. Such revised Table of Contents, by this reference, is incorporated in the Purchase Agreement.

2.
TABLES.

Table 1d, Information Table - Block 800LUV Aircraft (non-ETOPS Configuration), is deleted in its entirety and replaced by a new Table 1d (attached). The new Table 1d accelerates the scheduled delivery month for one (1) position from May 2017 and one (1) position from June 2017 to two (2) positions in December 2016.

3.
LETTER AGREEMENTS.

Attachment A to Letter Agreement SWA-PA-1810-LA-1001315R4, ***, is deleted in its entirety and replaced by a new Attachment A (attached). The new Attachment A updates the delivery month of Aircraft 60 and 61 to December 2016.

4.
***





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


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

THE BOEING COMPANY
SOUTHWEST AIRLINES CO.
 
 
By: /s/ Jon W. Lewis
By: /s/ Chris Monroe
 
       Chris Monroe
Its:    Attorney‑In‑Fact   
Its: VP, Treasurer__





P.A. No. 1810
SA-93-2
 
 
BOEING PROPRIETARY
 

TABLE OF CONTENTS
 
 
Page
SA
 
 
Number
Number

    

ARTICLES


1.
Subject Matter of Sale……………………………
1-1
SA-92
 
 
 
 
2.
Delivery, Title and Risk
 
 
 
of Loss……………………………………………
2-1
SA-28
 
 
 
 
3.
Price of Aircraft………………………………….
3‑1
SA-92
 
 
 
 
4.
Taxes…………………………………………….
4-1
 
 
 
 
 
5.
Payment…………………………………………
5‑1
 
 
 
 
 
6.
Excusable Delay…………………………………
6‑1
 
 
 
 
 
7.
Changes to the Detail
 
 
 
Specification…………………………………….
7-1
SA-73
 
 
 
 
8.
Federal Aviation Requirements and
 
 
 
Certificates and Export License…………………
8-1
 
 
 
 
 
9.
Representatives, Inspection,
 
 
 
Flights and Test Data……………………………
9-1
 
 
 
 
 
10.
Assignment, Resale or Lease……………………
10‑1
 
 
 
 
 
11.
Termination for Certain Events…………………
11‑1
 
 
 
 
 
12.
Product Assurance; Disclaimer and
 
 
 
Release; Exclusion of Liabilities;
 
 
 
Customer Support; Indemnification
 
 
 
and Insurance……………………………………
12-1
 
 
 
 
 
13.
Buyer Furnished Equipment and
 
 
 
Spare Parts………………………………………
13-1
 
 
 
 
 
14.
Contractual Notices and Requests………………
14‑1
 
 
 
 
 
15.
Miscellaneous……………………………………
15‑1
 




P.A. No. 1810
i
 
K/SWA
 
SA-93



TABLE OF CONTENTS
 
SA
 
Number


TABLE
 
1b
Aircraft Information Table – Block 800LUV Aircraft
SA-82
 
 
 
1c
Aircraft Information Table – Block 800LUV Aircraft
SA-92
 
(non-ETOPS Configuration)

 
 
 
 
1d
Aircraft Information Table – Block 800LUV Aircraft
SA-93
 
(non-ETOPS Configuration)

 
 
EXHIBITS
 
 
 
A-6
Aircraft Configuration – Block 800LUV Aircraft
SA-75
 
 
 
A-7
Aircraft Configuration – Block 800LUV Aircraft
SA-84
 
(non-ETOPS Configuration)
 
 
 
 
B
***
SA-75
 
 
 
C
Customer Support Document
 
 
 
 
C-2
737-800 Customer Support Document
SA-75
 
 
 
D-2
Economic Price Adjustment
SA-75
 
ECI-MFG/CPI (July 2011 Base Price)
 
 
 
 
E
Buyer Furnished Equipment
SA-75
 
Provisions Document
 
 
Attachment A – 737-7H4 Aircraft (through 2012)
 
 
Attachment B – 737-8H4 Aircraft (2012-2018)
SA-92
 
 
 
F
Defined Terms Document
 


LETTER AGREEMENTS

1810-1R1
Waiver of Aircraft Demonstration Flight
SA-75


P.A. No. 1810
ii
 
K/SWA
 
SA-93



TABLE OF CONTENTS
 
SA
 
Number



RESTRICTED LETTER AGREEMENTS
 
6‑1162‑RLL‑932R3
***
SA-75
 
 
 
6‑1162‑RLL‑934R5
Disclosure of Confidential Information
SA-75
 
 
 
6‑1162‑RLL‑941R3
Other Matters
SA-75
 
 
 
6-1162-KJJ-055R1
Structural Matters
SA-25
 
 
 
6-1162-KJJ-056
Noise and Emission Matters
SA-13
 
 
 
6-1162-KJJ-057
Product Development Matters
SA-13
 
SWA-PA-1810-LA-1001315R4
***
 
SA-92
 
Attachment A
 
SA-93
 
 
 
 
SWA-PA-1810-LA-1003498R1
***
 
SA-75
 
 
 
 
SWA-PA-1810-LA-1003490R4
***
 
SA-92
 
 
 
 
SWA-PA-1810-LA-1003367R1
***
 
SA-75
 
 
 
 
SWA-PA-1810-LA-1105883
Aircraft Model Substitution
 
SA-75
 
SWA-PA-1810-LA-1105884R2
Option Aircraft
 
 
 
SA-92
 
Attachment A – Model 737-8H4 Aircraft
 
 
 
SA-92
 
Attachment B – Option Aircraft Information Table
 
 
 
SA-92

SWA-PA-1810-LA-1105885R3
***
SA-90

SWA-PA-1810-LA-1105886R2
***
SA-92
 
 
 
 
 
 
SWA-PA-1810-LA-1105887
***
SA-75
 
 
 
 
 
 
SWA-PA-1810-LA-1105888R5
***
SA-92
 
 
 
SWA-PA-1810-LA-1105889
***
SA-75
SWA-PA-1810-LA-1303010R1
***
SA-92
SWA-PA-1810-LA-1504814
***
SA-92


P.A. No. 1810
iii
 
K/SWA
 
SA-93



TABLE OF CONTENTS
    


ADDITIONAL LETTERS (FOR REFERENCE) – INACTIVE (as of SA-82)
6-1162-MSA-288
Business Offer – Enhanced Ground Proximity
 
Warning System (EGPWS) – Activiation – Peaks
 
and Obstacles Feature
 
(Not applicable to Block 700LUV & Block 800LUV Aircraft)
 
6-1162-JMG-501R2
Business Offer – ACARS package
 
(Not applicable to Block 700LUV & Block 800LUV Aircraft)

INACTIVE / DELETED TABLES, EXHIBITS, AND LETTER AGREEMENTS

TABLE

Table
Title
Last Updated under SA
Current Status
1
Aircraft Information Table
SA-75
Inactive
2
Option Aircraft Information Table
SA-74
Deleted under SA-75
1a
Aircraft Information Table - Block 700LUV Aircraft

SA-91
Deleted under SA-92

EXHIBITS

Exhibits
Title
Last Updated under SA
Current Status
A
Aircraft Configuration – 737-700
SA-36
Inactive
A-Winglet
Aircraft Configuration
SA-36
Inactive
A-1-Winglet
Aircraft Configuration
SA-36
Inactive
A-1A
Aircraft Configuration - 737-700 Block T-W-2c
SA-36
Inactive
A-2
Aircraft Configuration - 737-700 Block T-W-2 / T-W-2a
SA-47
Inactive
A-3
Aircraft Configuration - 737-700 Block T-W-2 / T-W-2a
SA-61
Inactive
A-4
Aircraft Configuration - 737-700 Block T-W-2b Aircraft
SA-66
Inactive
A-5
Aircraft Configuration - Block 700LUV Aircraft

SA-75
Deleted under SA-92
C.2
737-800 Customer Support Variables
SA-71
Deleted under SA-75
D
Price Adjustment Due to
Economic Fluctuations – Aircraft Price Adjustment
(July 1992 Base Price)
 
Inactive
D-1
Price Adjustment Due to Economic Fluctuations –
SA-13
Inactive


P.A. No. 1810
iv
 
K/SWA
 
SA-93



TABLE OF CONTENTS
    


 
Aircraft Price Adjustment
(July 1992 Base Price)
 
 
E.2
737-800 Buyer Furnished Equipment Provisions Document
SA-73
Deleted under SA-75

RESTRICTED LETTER AGREEMENTS

Letter Agreement
Title
Last Updated under SA
Current Status
6‑1162‑RLL‑933R21
Option Aircraft
SA-60
Deleted under SA-75
6‑1162‑RLL‑935R1
Performance Guarantees
SA-1
Inactive
6‑1162‑RLL‑936R4
Certain Contractual Matters
SA-4
Inactive
6‑1162‑RLL‑937
Alternate Advance Payment Schedule
 
Inactive
6‑1162‑RLL‑938
***
 
Inactive
6‑1162‑RLL‑939R1
Certification Flight Test Aircraft
SA-1
Inactive
6‑1162‑RLL‑940R1
Training Matters
SA-1
Inactive
6‑1162‑RLL‑942
Open Configuration Matters
 
Inactive
6‑1162‑RLL‑943R1
Substitution Rights
SA-6
Deleted under SA 75
6‑1162‑RLL‑944
***


 
Inactive
6-1162-RLL-945
Comparison of 737-7H4 and 737-3H4 Block Fuel Burn
 
Inactive
6-1162-RLL-1855R3
Additional Contractual Matters
SA-4
Inactive
6-1162-RLL-1856
***
SA-1
Inactive
6-1162-RLL-1857
Service Ready Validation Program Field Test
SA-1
Inactive
6-1162-RLL-1858R1
Escalation Matters
SA-4
Inactive
6-1162-RLL-2036
Amortization of Costs for Customer Unique Changes
SA-1
Inactive
6-1162-RLL-2037
Reconciliation of the Aircraft Basic Price
SA-1
Inactive
6-1162-RLL-2073
Maintenance Training Matters
SA-1
Inactive
6-1162-KJJ-058R1
Additional Substitution Rights
SA-71
Deleted under SA-75
6-1162-KJJ-150
Flight Control Computer & Mode Control Panel Spares Matter
SA-14
Inactive
6-1162-MSA-185R3
Delivery Change Contractual Matters
SA-21
Inactive
 
 
 
 

P.A. No. 1810
v
 
K/SWA
 
SA-93



TABLE OF CONTENTS
    


Letter Agreement
Title
Last Updated under SA
Current Status
6-1162-JMG-747R1
***
SA-36
Inactive
6-1162-CHL-217
Rescheduled Flight Test Aircraft
SA-32
Inactive
6-1162-NIW-606R1
***

SA-36
Inactive
6-1162-NIW-640
Early Delivery of Two April 2004 Aircraft
SA-35
Inactive
6-1162-NIW-889
Warranty - Exterior Color Schemes and Markings for YA143 and on
SA-39
Inactive
6-1162-NIW-1142
***


SA-43
Inactive
6-1162-NIW-1369
***

SA-46
Inactive
6-1162-NIW-1983
***
SA-62
Inactive
SWA-PA-1810-LA-1000419
***

SA-64
Inactive
6-1162-NIW-890R1
***





SA-75




SA-39
Inactive
6-1162-KJJ-054R2
Business Matters
SA-75
Inactive
6-1162-JMG-669R9
***



SA-75

SA-75
SA-54
Inactive
SWA-PA-1810-LA-02710R1
***


SA-72
Inactive
SWA-PA-01810/03729-LA-1301169
***


SA-2 to PA 3729
Inactive

P.A. No. 1810
vi
 
K/SWA
 
SA-93




Table 1d To
Purchase Agreement No. PA-01810
Aircraft Delivery, Description, Price and Advance Payments
Block 800LUV Aircraft (non-ETOPS Configuration)

Airframe Model/MTOW:
737-800
174,200 pounds
Detail Specification:
D019A001SWA38 (1/9/2015)
Engine Model/Thrust:
CFM56-7B27
27,300 pounds
Airframe Price Base Year/Escalation Formula:
Jul-11
ECI-MFG/CPI
Airframe Price:
***
 
Engine Price Base Year/Escalation Formula:
N/A
N/A
Optional Features:
***
 
Sub-Total of Airframe and Features:
***
 
Airframe Escalation Data:
Engine Price (Per Aircraft):
***
 
Base Year Index (ECI):
***
Aircraft Basic Price (Excluding BFE/SPE):
***
 
Base Year Index (CPI):
***
Buyer Furnished Equipment (BFE) Estimate:
***
 
 
 
Seller Purchased Equipment (SPE) Estimate:
***
 
Deposit per Exercised Option Aircraft (OPEX):
***
 


Delivery

Date


Number of

Aircraft

Escalation

Factor

(Airframe)

Aircraft

Serial

Number
 

Escalation Estimate

Adv Payment Base

Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):

At Signing

***

24 Mos.

***

21/18/12/9/6 Mos.

***

Total

***
Dec-2016
2
***
 
OPEX
***
***
***
***
***
May-2017
1
***
 
OPEX
***
***
***
***
***
Jul-2017
1
***
 
 
***
***
***
***
***
Jul-2017
2
***
 
OPEX
***
***
***
***
***
Sep-2017
5
***
 
 
***
***
***
***
***
Oct-2017
3
***
 
 
***
***
***
***
***
Oct-2017
1
***
 
OPEX
***
***
***
***
***
Nov-2017
2
***
 
 
***
***
***
***
***
Nov-2017
2
***
 
OPEX
***
***
***
***
***
Dec-2017
2
***
 
 
***
***
***
***
***
Dec-2017
4
***
 
OPEX
***
***
***
***
***
Jan-2018
2
***
 
 
***
***
***
***
***
Feb-2018
2
***
 
 
***
***
***
***
***



 
 
SA-93
SWA-PA-01810 82233-1F.TXT
Boeing Proprietary
Page 1



Table 1d To
Purchase Agreement No. PA-01810
Aircraft Delivery, Description, Price and Advance Payments
Block 800LUV Aircraft (non-ETOPS Configuration)



Delivery

Date


Number of

Aircraft

Escalation

Factor

(Airframe)

Aircraft

Serial

Number
 

Escalation Estimate

Adv Payment Base

Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):

At Signing

***

24 Mos.

***

21/18/12/9/6 Mos.

***

Total

***
May-2018
2
***
 
 
***
***
***
***
***
Jun-2018
2
***
 
 
***
***
***
***
***
 
 
 
 
 
 
 
 
 
 
Total:
33
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes:

 
 
 
 
 
 
 
 
 
1) ***
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



 
 
SA-93
SWA-PA-01810 82233-1F.TXT
Boeing Proprietary
Page 2


Attachment A to SWA-PA-1810-LA1001315R4

Page 1 of 2

 ***
 
 
Letter Agmt SWA-PA-1810-LA-1001315R4; paragraph 3.3
No.
Model
Aircraft Block
MSN's
Current Delivery Mo.
Base Year
***
1
737-700
T-W-2b
36962
July-11
1999
***
2
737-700
T-W-2b
36963
July-11
1999
***
3
737-700
T-W-2b
36965
August-11
1999
***
4
737-700
T-W-2b
36967
October-11
1999
***
5
737-800
800LUV
36980
March-12
2011
***
6
737-800
800LUV
36983
April-12
2011
***
7
737-800
800LUV
36985
May-12
2011
***
8
737-800
800LUV
36987
May-12
2011
***
9
737-800
800LUV
36990
July-12
2011
***
10
737-800
800LUV
36992
August-12
2011
***
11
737-800
800LUV
36994
September-12
2011
***
12
737-800
800LUV
37003
November-12
2011
***
13
737-800
800LUV
37009
December-12
2011
***
14
737-800
800LUV
36973
March-13
2011
***
15
737-800
800LUV
36998
March-13
2011
***
16
737-800
800LUV
36908
April-13
2011
***
17
737-800
800LUV
36933
September-13
2011
***
18
737-800
800LUV
42526
November-13
2011
***
19
737-800
800LUV
37004
March-14
2011
***
20
737-800
800LUV
42521
May-14
2011
***
21
737-800
800LUV
42522
June-14
2011
***
22
737-800
800LUV
60082
June-14
2011
***
23
737-800
800LUV
60083
June-14
2011
***
24
737-800
800LUV
42523
June-14
2011
***
25
737-800
800LUV
60084
July-14
2011
***
26
737-800
800LUV
60085
July-14
2011
***
27
737-800
800LUV
60086
July-14
2011
***
28
737-800
800LUV
42524
December-14
2011
***
29
737-800
800LUV
42525
August-14
2011
***
30
737-800
800LUV
36935
August-14
2011
***
31
737-800
800LUV
42527
September-14
2011
***
32
737-800
800LUV
42528
August-14
2011
***
33
737-800
800LUV
42531
September-14
2011
***
34
737-800
800LUV
36909
September-14
2011
***
35
737-800
800LUV
42529
December-14
2011
***
36
737-800
800LUV
42530
December-14
2011
***
37
737-800
800LUV
37045
December-14
2011
***
38
737-800
800LUV
37037
December-14
2011
***
39
737-800
800LUV
42535
January-15
2011
***
40
737-800
800LUV
36940
November-15
2011
***
41
737-800
800LUV
36938
May-16
2011
 
42
737-800
800LUV
36939
May-16
2011
 
43
737-800
800LUV
36945
July-16
2011
 
44
737-800
800LUV
36977
September-16
2011
 
45
737-800
800LUV
42532
January-17
2011
 
46
737-800
800LUV
36910
January-17
2011
 
47
737-800
800LUV
36970
February-17
2011
 
48
737-800
800LUV
36969
February-17
2011
 

 
BOEING PROPRIETARY
SA-93

Attachment A to SWA-PA-1810-LA1001315R4

Page 2 of 2


49
737-800
800LUV
36972
March-17
2011
 
50
737-800
800LUV
36927
April-17
2011
51
737-800
800LUV
36974
April-17
2011
52
737-800
800LUV
36925
November-16
2011
*
53
737-800
800LUV
36975
December-16
2011
*
54
737-800
800LUV
36976
December-16
2011
*
55
737-800
800LUV
36926
January-18
2011
 
56
737-800
800LUV
42533
February-18
2011
 
57
737-800
800LUV
42545
February-18
2011
 
58
737-800
800LUV
42534
March-18
2011
 
59
737-800
800LUV
tbd
May-17
2011
 
60
737-800
800LUV
tbd
December-16
2011
**
61
737-800
800LUV
tbd
December-16
2011
**
62
737-800
800LUV
tbd
July-17
2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*Accelerated in SA-92

**Accelerated in SA-93



 
BOEING PROPRIETARY
SA-93