Supplemental Agreement No.86toPurchase Agreement No.1810betweenTHE BOEING COMPANYandSOUTHWEST AIRLINES CO.Relating to Boeing Model 737-7H4 and 737-8H4 Aircraft

EX-10.1 2 sa-86topax18101redacted.htm SUPPLEMENTAL AGREEMENT NO. 86 SA-86 to PA-18101 redacted


                                             Exhibit 10.1

Supplemental Agreement No. 86
 
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 is entered into as of March 11, 2014, 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).

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); and this Supplemental Agreement is an amendment to and is incorporated into the Purchase Agreement.

WHEREAS, Boeing and Buyer agree to amend the Purchase Agreement by revising the delivery month of one (1) Block 800LUV Aircraft identified by MSN 36896 from April 2014 to March 2014.

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

1.     The Table of Contents of the Purchase Agreement is deleted in its entirety and a new Table of Contents is attached hereto and incorporated into the Purchase Agreement by this reference.

2.    Table 1c, “Aircraft Information Table - Block 800LUV Aircraft (non-ETOPS Configuration),” to the Purchase Agreement is deleted in its entirety and a new Table 1c is attached hereto and incorporated into the Purchase Agreement by this reference. The new Table 1c reflects the revised delivery month of MSN 36896 and corrects typographical errors regarding the Escalation Factor and Advance Payment Base Price and standard Advance Payment data with respect to MSNs 42929 and 42530.
***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-86-1
 


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/ Jeff Solomon
By: /s/ Chris Monroe
 
  Chris Monroe
Its:   Attorney‑In‑Fact   
Its: VP, Treasurer



P.A. No. 1810
SA-86-2
 
 
TABLE OF CONTENTS
 
 
 
 
Page
SA
 
 
Number
Number

ARTICLES


1.
Subject Matter of Sale ........................................................................................ 1-1
SA-82
 
 
 
2.
Delivery, Title and Risk of Loss ................................................................................................................ 2-1
SA-28
 
 
 
3.
Price of Aircraft ................................................................................................. 3-1
SA-82
 
 
 
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-86
 
TABLE OF CONTENTS
 
 
 
SA
 
 
Number


TABLE
 
 
 
 
 
1a
Aircraft Information Table - Block 700LUV Aircraft
SA-85
 
 
 
1b
Aircraft Information Table - Block 800LUV Aircraft
SA-82
 
 
 
1c
Aircraft Information Table - Block 800LUV Aircraft
SA-86
 
 (non-ETOPS Configuration)
 
             
EXHIBITS
 
 
 
 
 
A-5
Aircraft Configuration - Block 700LUV Aircraft
SA-75
 
 
 
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
Provisions Document
SA-75
 
Attachment A - 737-7H4 Aircraft (through 2012)
 
 
Attachment B - 737-8H4 Aircraft (2012-2018)
SA-75
 
 
 
F
Defined Terms Document
 

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



P.A. No. 1810
ii
 
K/SWA
 
SA-86
 
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-1001315R3
***
SA-85
 
Attachment A
SA-85
        
SWA-PA-1810-LA-1003498 R1
***
SA-75
 
 
 
SWA-PA-1810-LA-1003490R2
***
SA-82
 
 
 
SWA-PA-1810-LA-1003367R1
***
SA-75
 
 
 
SWA-PA-1810-LA-1105883
Aircraft Model Substitution
SA-75
 
 
 
SWA-PA-1810-LA-1105884
Option Aircraft
SA-75
 
Attachment B - Option Aircraft Information Table
SA-83

SWA-PA-1810-LA-1105885R2
***
SA-84
 
 
 
SWA-PA-1810-LA-1105886R1
***
SA-82
 
         
 
 
 
 
SWA-PA-1810-LA-1105887
***
SA-75
 
  
 


P.A. No. 1810
iii
 
K/SWA
 
SA-86
 
TABLE OF CONTENTS
 
 
 
SA
 
 
Number

SWA-PA-1810-LA-1105888R4
***
SA-85
 
 
 
SWA-PA-1810-LA-1105889
***
SA-75
 
 
 
SWA-PA-1810/03729-LA-1301169
***
SA-83
 
 
 
SWA-PA-1810-LA-1303010
***
SA-85


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
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



P.A. No. 1810
iv
 
K/SWA
 
SA-86
 
TABLE OF CONTENTS
 

A-4
Aircraft Configuration - 737- 700 Block T-W-2b Aircraft
SA-66
Inactive
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 - Aircraft Price Adjustment
(July 1999 Base Price)
SA-13
Inactive
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
SA-1
Inactive

P.A. No. 1810
v
 
K/SWA
 
SA-86
 
TABLE OF CONTENTS
 

Letter Agreement
Title
Last Updated under SA
Current Status
 
Customer Unique Changes
 
 
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
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


P.A. No. 1810
vi
 
K/SWA
 
SA-86
Table 1c to
Purchase Agreement No. PA-01810
Aircraft Delivery, Description, Price and Advance Payments
 Block 800LUV Aircraft (non-ETOPS Configuration)

Airframe Model/MTOW:
737-800
174200 pounds
 
 
Detail Specification:
 
D019A001SWA38P-1 Rev C (3/29/2013)
 
Engine Model/Thrust:
CFM56-7B27
27300 pounds
Note 1
 
Base Aircraft Price Base Year/Escalation Formula:
Jul-11
ECI-MFG/CPI
Base Aircraft Price:
 
***
 
 
Engine Price Base Year/Escalation Formula:
N/A
N/A
Special Features:
***
 
 
 
 
 
 
 
 
Add'l Features/Changes
***
 
 
 
 
 
 
 
 
Total Special Features (Exhibit A-7)
***
 
 
 
 
 
 
 
Sub-Total of Airframe and Features:
***
 
 
Aircraft Price 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:
***
 
 
 
 
 
 
 

 
 
Escalation
Aircraft
 
 
Escalation Estimate
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
Delivery
Number of
Factor
Serial
Escalation
Sub-Block
Adv Payment Base
At Signing
24 Mos.
21/18/12/9/6 Mos.
Total
Date
Aircraft
(Airframe)
Number
Forecast
Note 2
Price Per A/P
***
***
***
***
Sep-2013
3
***
36933, 36912, 36914
***
 
***
***
***
***
***
Nov-2013
3
***
36915, 33939, 42526
***
 
***
***
***
***
***
Dec-2013
3
***
36917, 36919, 36731
***
 
***
***
***
***
***
Mar-2014
2
***
37004, 36896
***
 
***
***
***
***
***
Apr-2014
3
***
42384, 36894, 36895
***
 
***
***
***
***
***
May-2014
3
***
36897, 42385, 42521
***
 
***
***
***
***
***
Jun-2014
4
***
36898, 36905, 42522, 42523
***
 
***
***
***
***
***
Jun-2014
2
***
tbd, tbd
***
OPEX
***
***
***
***
***
Jul-2014
1
***
36,911
***
 
***
***
***
***
***
Jul-2014
3
***
tbd, tbd, tbd
***
OPEX
***
***
***
***
***
Aug-2014
6
***
36907, 42524,35973, 42525, 36935, 42528
***
 
***
***
***
***
***
Sep-2014
2
***
42527, 42531
***
 
***
***
***
***
***



SWA-PA-01810
 
SA-86
63879 / 63887 / 64110 / 64111 / 66379
Boeing Proprietary
Page 1
Table 1c to
Purchase Agreement No. PA-01810
Aircraft Delivery, Description, Price and Advance Payments
 Block 800LUV Aircraft (non-ETOPS Configuration)

 
 
Escalation
Aircraft
 
 
Escalation Estimate
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery): 
Delivery
Number of
Factor
Serial
Escalation
Sub-Block
Adv Payment Base
At Signing
24 Mos.
21/18/12/9/6 Mos.
Total
Date
Aircraft
(Airframe)
Number
Forecast
Note 2
Price Per A/P
***
***
***
***
Oct-2014
2
***
36909, 36920
***
 
***
***
***
***
***
Nov-2014
1
***
36971
***
 
***
***
***
***
***
Dec-2014
2
***
37037, 37045
***
 
***
***
***
***
***
Dec-2014
2
***
42529, 42530
***
 
***
***
***
***
***
Jan-2015
2
***
36899, 42535
***
 
***
***
***
***
***
Feb-2015
3
***
36901, 36654, 36906
***
 
***
***
***
***
***
Mar-2015
3
***
36902, 36936, 36655
***
 
***
***
***
***
***
Apr-2015
3
***
36649, 36652, 36656
***
 
***
***
***
***
***
May-2015
2
***
36903, 36657
***
 
***
***
***
***
***
Nov-2015
3
***
36937, 36715, 36940
***
 
***
***
***
***
***
Dec-2015
3
***
36941, 36734, 35976
***
 
***
***
***
***
***
Total:
61
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
 
 
 
1) ***
 
 
 
2) The sub-block identifier is used to denote applicability of certain business terms as referenced in Letter Agreement SWA-PA-1810-LA-1105888R4 to the Purchase Agreement.


SWA-PA-01810
 
SA-86
63879 / 63887 / 64110 / 64111 / 66379
Boeing Proprietary
Page 2