Supplemental Agreement No.80

EX-10.1 2 sa80topa18101redacted.htm SUPPLEMENTAL AGREEMENT NO. 80 SA80toPA18101redacted

Supplemental Agreement No. 80
 
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, entered into as of February 26, 2013, 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 offered and Buyer agreed to accelerate delivery of one (1) 737-8H4 Aircraft bearing Manufacturing Serial Number 36998 from April 2013 to March 2013 (Subject Aircraft).

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 1b, “Aircraft Information Table – Block 800LUV Aircraft,” is deleted in its entirety and a new Table 1b is attached hereto and incorporated into the Purchase Agreement by this reference. The new Table 1b reflects the revised delivery month for the Subject Aircraft.
    
3.Attachment A to Letter Agreement SWA-PA-1810-LA-1001315R1, *** is deleted in its entirety and replaced with a revised Attachment A to Letter Agreement SWA-PA-1810-LA-1001315R1, attached hereto and incorporated in the Purchase Agreement by this reference.

***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-80-1




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/ Tammy Romo________________
Its:    Attorney‑In‑Fact
Its: Sr VP Finance & CFO____________


P.A. No. 1810
SA-80-2


TABLE OF CONTENTS
 
 
 
Page
SA
 
Number
Number


ARTICLES

1.
Subject Matter of Sale
1-1
SA-75
 
 
 
 
2.
Delivery, Title and Risk
 
 
 
of Loss
2-1
SA-28
 
 
 
 
3.
Price of Aircraft
3‑1
SA-75
 
 
 
 
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-80


 
TABLE OF CONTENTS
 
 
 
SA
 
 
Number


TABLE

1.
Aircraft Information Table
SA-75
1a
Aircraft Information Table – Block 700LUV Aircraft
SA-77
1b
Aircraft Information Table – Block 800LUV Aircraft
SA-80


EXHIBITS

A-4
Aircraft Configuration - 737-700 Block T-W-2b Aircraft
SA-66
 
 
 
 
 
A-5
Aircraft Configuration – Block 700LUV Aircraft
SA-75
 
 
 
 
 
A-6
Aircraft Configuration – Block 800LUV Aircraft
SA-75
 
 
 
 
 
B
***
SA-75
 
 
 
 
 
C
Customer Support Document
 
 
 
 
 
 
 
 
C-2
737-800 Customer Support Document
SA-75
 
 
 
 
 
D
Price Adjustment Due to
 
 
 
 
Economic Fluctuations – Aircraft Price Adjustment
 
 
(July 1992 Base Price)
 
 
 
 
 
 
 
 
D-1
Price Adjustment Due to
 
 
SA-13
 
Economic Fluctuations – Aircraft Price Adjustment
 
 
(July 1999 Base Price)
 
 
 
 
 
 
 
 
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-77
 
 
 
 
 
F
Defined Terms Document
 
 
 

LETTER AGREEMENTS

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

P.A. No. 1810
ii
 
K/SWA
 
SA-80


 
TABLE OF CONTENTS
 
 
 
SA
 
 
Number


RESTRICTED LETTER AGREEMENTS
 
 
 
 
6‑1162‑RLL‑932R3
***
SA-75
 
 
 
 
6‑1162‑RLL‑934R5
Disclosure of Confidential
 
SA-75
 
Information
 
 
 
 
 
 
6-1162-NIW-890R1
***
 
SA-75
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SA-39
 
 
 
 
6‑1162‑RLL‑941R3
Other Matters
 
SA-75
 
 
 
 
6-1162-KJJ-054R2
Business Matters
 
SA-75
 
(Not applicable to Block 700LUV & Block 800LUV Aircraft)
 
 
 
 
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
 
 
 
 
6-1162-JMG-669R9
***
 
SA-75
 
 
 
 
 
SA-75
 
 
 
SA-54
SWA-PA-1810-LA-1001315R1 ***
SA-75
 
Attachment A
 
SA-80
 
 
 
 
SWA-PA-1810-LA-02710R1 ***
SA-72
 
 
 
 
 
 
 
SWA-PA-1810-LA-1003498 R1 ***
SA-75
 
 
 
 
SWA-PA-1810-LA-1003490R1 ***
SA-75
 
 
 
 
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 – Option Aircraft Information Table
        

P.A. No. 1810
iii
 
K/SWA
 
SA-80


 
TABLE OF CONTENTS
 
 
 
SA
 
 
Number



SWA-PA-1810-LA-1105885 ***
SA-75
 
 
 
SWA-PA-1810-LA-1105886 ***
SA-75
 
 
 
 
 
 
SWA-PA-1810-LA-1105887 ***
SA-75
 
 
 
 
 
 
SWA-PA-1810-LA-1105888
***
SA-78
 
 
 
SWA-PA-1810-LA-1105889
***
SA-75
 

ADDITIONAL LETTERS (FOR REFERENCE)
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
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


P.A. No. 1810
iv
 
K/SWA
 
SA-80


 
TABLE OF CONTENTS
 
 
 
 
 
 
 


Exhibits
Title
Last Updated under SA
Current Status
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
C.2
737-800 Customer Support Variables
SA-71
Deleted under SA-75
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


P.A. No. 1810
v
 
K/SWA
 
SA-80


 
TABLE OF CONTENTS
 
 
 
 
 
 
 


Letter Agreement
Title
Last Updated under SA
Current Status
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




P.A. No. 1810
vi
 
K/SWA
 
SA-80


Table 1b to
Purchase Agreement No. PA-01810
Aircraft Delivery, Description, Price and Advance Payments
Block 800LUV Aircraft


Airframe Model/MTOW:
737-800
174200 pounds
Detail Specification:
D019A001SWA38P-1 Rev New

Engine Model/Thrust:
CFM56-7B26
26400 pounds
 
Airframe 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:
 
________ ***
Notes 1 & 2
 
 
 
 
Sub-Total of Aircraft Base Price 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:
                        ***
 
 
 
 
 


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
***

Mar-2012

1

***

36980

Note 1 & 3

***

***

***

***

***

Mar-2012

1

***

36680

Note 2 & 3

***

***

***

***

***

Apr-2012

3

***

36681, 36983, 36683

Note 3

***

***

***

***

***

May-2012

3

***

36682, 36985, 36987

Note 3

***

***

***

***

***

Jun-2012

4

***

38807, 38808, 38809, 38810

Note 3

***

***

***

***

***

Jul-2012

3

***

36684, 36990, 38811

Note 3

***

***

***

***

***

Aug-2012

2

***

36685, 36992

Note 3

***

***

***

***

***

Sep-2012

2

***

36686, 36994

Note 3

***

***

***

***

***

Sep-2012

1

***

36687

Note 5

***

***

***

***

***

Oct-2012

1

***

36997

Note 3

***

***

***

***

***

Nov-2012

4

***

37005, 37003, 35969, 35966

Note 3

***

***

***

***

***

Dec-2012

3

***

37006, 37009, 38818,

Note 3

***

***

***

***

***

Dec-2012

1

***

36891
 

***

***

***

***

***

Jan-2013

3

***

35964, 36638, 36634
 

***

***

***

***

***

Feb-2013

2

***

36635, 36893
 

***

***

***

***

***

Mar-2013

2

***

36892, 36973
 

***

***

***

***

***

Mar-2013

1

***

36998

Note 6

***

***

***

***

***


SWA-PA-01810
 
Page 1
57774, 57776, 57777, 60261-1F.TXT
Boeing Proprietary
SA-80


Table 1b to
Purchase Agreement No. PA-01810
Aircraft Delivery, Description, Price and Advance Payments
Block 800LUV Aircraft




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

***

Apr-2013

1
***

36908
 

***

***

***

***

***

Sep-2013

1

***

36933
 

***

***

***

***

***

Oct-2013

2

***

36912, 36914
 

***

***

***

***

***

Nov-2013

3

***

36915, 33939, 42526
 

***

***

***

***

***

Dec-2013

5

***
36917, 36919, 36731, 42529, 42530
 

***

***

***

***

***

Mar-2014

1

***

37004

Note 4

***

***

***

***

***

Apr-2014

4

***

42384, 36894, 36895, 36896

Note 4

***

***

***

***

***

May-2014

3

***

36897, 42385, 42521

Note 4

***

***

***

***

***

Jun-2014

3

***

36898, 36905, 42522

Note 4

***

***

***

***

***

Jul-2014

2

***

42523, 36911

Note 4

***

***

***

***

***

Aug-2014

4

***

36907, 42524,35973, 42525

Note 4

***

***

***

***

***

Sep-2014

4

***

36935, 42528, 42527, 42531

Note 4

***

***

***

***

***

Oct-2014

3

***

36909, 36732, 36920

Note 4

***

***

***

***

***
Total
73
 
 

Notes:
1) ***
2) ***
3) ***
4) The Advance Payment Base Price is determined using the escalation factor from Boeing's 4th Qtr 2011 forecast.
5) The Advance Payment Base Price for MSN 36687 reflects an original delivery date of October-2012. At time of delivery, the Economic Price Adjustment will be calculated based on the rescheduled delivery date of September 2012 in accordance with Exhibit D-2.
6) The Advance Payment Base Price for MSN 36998 reflects an original delivery date of April-2013. At time of delivery, the Economic Price Adjustment will be calculated based on the rescheduled delivery date of March-2013 in accordance with Exhibit D-2.




SWA-PA-01810
 
Page 2
57774, 57776, 57777, 60261-1F.TXT
Boeing Proprietary
SA-80


Attachment A to SWA-PA-1810-LA1001315R1
Page 1 of 2



***
Letter Agmt SWA-PA-1810-LA-1001315R1; paragraph 3
No.
1
Model
737-700
Aircraft Block
T-W-2b
MSN's
36962
Current Delivery Mo. July-11
Base Year
1999
Status
***
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
36908
April-13
2011
 
16
737-800
800LUV
36998
April-13 March-13
2011
 
17
737-800
800LUV
37004
May-13 March-14
2011
 
18
737-800
800LUV
42521
July-13 May-14
2011
 
19
737-800
800LUV
42522
August-13 June-14
2011
 
20
737-800
800LUV
42523
August-13 July-14
2011
 
21
737-800
800LUV
42524
September-13 August-14
2011
 
22
737-800
800LUV
36933
September-13
2011
 
23
737-800
800LUV
42525
October-13 August-14
2011
 
24
737-800
800LUV
36935
October-13 September-14
2011
 
25
737-800
800LUV
42526
November-13
2011
 
26
737-800
800LUV
42527
November-13 September-14
2011
 
27
737-800
800LUV
42528
November-13 September-14
2011
 
28
737-800
800LUV
42529
December-13
2011
 
29
737-800
800LUV
42530
December-13
2011
 
30
737-800
800LUV
42531
January-14 September-14
2011
 
31
737-800
800LUV
36909
January-14 October-14
2011
 
32
737-700
700LUV
42532
February-14 January-17
2011
 
33
737-700
700LUV
36910
February-14 January-17
2011
 
34
737-700
700LUV
36927
March-14 April-17
2011
 
35
737-700
700LUV
36925
March-14 May-17
2011
 
36
737-700
700LUV
36926
April-14 January-18
2011
 
37
737-700
700LUV
36929
April-14 August-17
2011
 
38
737-700
700LUV
42533
May-14 February-18
2011
 
39
737-700
700LUV
42534
May-14 March-18
2011
 
40
737-700
700LUV
37019
August-14 June-18
2011
 
41
737-700
700LUV
36930
September-14 September-17
2011
 
42
737-700
700LUV
37042
September-14 July-18
2011
 
43
737-700
700LUV
36934
October-14 October-17
2011
 
44
737-700
700LUV
37034
October-14 September-18
2011
 
45
737-700
700LUV
37043
November-14
2011
 
46
737-700
700LUV
37045
December-14
2011
 
47
737-700
700LUV
37037
December-14
2011
 
48
737-700
700LUV
42535
January-15
2011
 

SA-80


Attachment A to SWA-PA-1810-LA1001315R1
Page 2 of 2



49
737-700
700LUV
42536
February-15
2011
50
737-700
700LUV
42537
March-15
2011
51
737-700
700LUV
42538
April-15
2011
52
737-700
700LUV
42539
May-15
2011
53
737-700
700LUV
42540
June-15
2011
54
737-700
700LUV
42541
July-15
2011
55
737-700
700LUV
42542
August-15
2011
56
737-700
700LUV
42543
September-15
2011
57
737-700
700LUV
36940
November-15
2011
58
737-700
700LUV
36938
April-16
2011
59
737-700
700LUV
36939
May-16
2011
60
737-700
700LUV
36945
July-16
2011
61
737-700
700LUV
36977
September-16
2011
62
737-700
700LUV
36970
January-17
2011
63
737-700
700LUV
36969
February-17
2011
64
737-700
700LUV
36972
March-17
2011
65
737-700
700LUV
36974
April-17
2011
66
737-700
700LUV
36975
May-17
2011
67
737-700
700LUV
36976
June-17
2011
68
737-700
700LUV
36979
August-17
2011
69
737-700
700LUV
36984
September-17
2011
70
737-700
700LUV
36988
October-17
2011
71
737-700
700LUV
36989
November-17
2011
72
737-700
700LUV
42544
January-18
2011
73
737-700
700LUV
42545
February-18
2011
74
737-700
700LUV
42546
March-18
2011
75
737-700
700LUV
42547
April-18
2011
76
737-700
700LUV
42548
May-18
2011
77
737-700
700LUV
42549
June-18
2011
78
737-700
700LUV
42550
July-18
2011
79
737-700
700LUV
42551
August-18
2011
80
737-700
700LUV
42552
September-18
2011
81
737-700
700LUV
42553
October-18
2011
82
 
 
 
tbd
 
83
 
 
 
tbd
 
84
 
 
 
tbd
 
85
 
 
 
tbd
 
86
 
 
 
tbd
 
87
 
 
 
tbd
 
88
 
 
 
tbd
 
89
 
 
 
tbd
 
90
 
 
 
tbd
 



SA-80