SupplementalAgreement No.58 to PurchaseAgreement No.1810 between THEBOEING COMPANY and SOUTHWESTAIRLINES CO. Relatingto Boeing Model 737-7H4 Aircraft (the Aircraft)

EX-10.2 3 ex10_2.htm EXHIBIT 10.2 SUPPLEMENTAL AGREEMENT NO. 58 ex10_2.htm
Exhibit 10.2
CONFIDENTIAL TREATMENT
 
Supplemental Agreement No. 58

to

Purchase Agreement No. 1810

between

THE BOEING COMPANY

and

SOUTHWEST AIRLINES CO.


Relating to Boeing Model 737-7H4 Aircraft (the Aircraft)



THIS SUPPLEMENTAL AGREEMENT, entered into as of February 28, 2008, 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);

WHEREAS, the parties hereto entered into Purchase Agreement No. 1810 dated January 19, 1994, relating to Boeing Model 737-7H4 aircraft (the Agreement) and;
 
                WHEREAS, Buyer has agreed to exercise one (1) June 2009 Option Aircraft as Block T-W-2 Aircraft and;

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

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

2.           Table 1 is deleted in its entirety and replaced by a new Table 1 which is attached hereto and is incorporated into the 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-58-1
K/SWA

3.           Table 2 is deleted in its entirety and replaced by a new Table 2 which is attached hereto and is incorporated into the Agreement by this reference.

4.           All references in the Letter Agreements associated with Purchase Agreement No. 1810 shall be deemed to refer to the purchase by Buyer of four hundred four (404) Model 737-7H4 Aircraft, eighty-two (82) Model 737-7H4 Option Aircraft and fifty-four (54) Model 737-7H4 Purchase Right Aircraft, to the extent such reference is not specifically addressed herein.

5.           The Advance Payment due upon signing assuming execution of this Supplemental Agreement on or before February 29, 2008 is:
 
              *** for one (1) June 2009 Block T-W-2 Aircraft

Buyer will pay the *** directly to Boeing on or before February 29, 2008.

The 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/ Nobuko Wiles           
By: /s/ Laura Wright           
   
Its:    Attorney-In-Fact         
Its: SVP Finance & CFO     

 
 
P.A.  No.  1810                                                             SA-58-2
K/SWA
 
TABLE OF CONTENTS

   
Page
SA
   
Number
Number
       
ARTICLES
      
       
       
1.
Subject Matter of Sale
1-1
SA-13
       
2.
Delivery, Title and Risk
    
 
of Loss
2-1
SA-28
       
3.
Price of Aircraft
3-1
SA-47
       
4.
Taxes
4-1
  
       
5.
Payment
5-1
  
       
6.
Excusable Delay
6-1
  
       
7.
Changes to the Detail
    
 
Specification
7-1
SA-1
       
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                                                                                                                                                  SA-58
K/SWA
 
TABLE OF CONTENTS CON'T

   
SA
   
Number
     
TABLE
    
     
1.
Aircraft Information Table
SA-58
     
2.
Option Aircraft Information Table
SA-58
     
EXHIBITS
    
     
     
A
Aircraft Configuration
SA-47
     
B
Product Assurance Document
SA-1
     
C
Customer Support Document
  
     
D
Price Adjustments Due to Economic Fluctuations - Aircraft
  
     
E
Buyer Furnished Equipment
  
 
Provisions Document
  
     
F
Defined Terms Document
  
     
     
     
     
     
LETTER AGREEMENTS
  
     
     
1810-1
Waiver of Aircraft Demonstration Flight
  



P.A.  No.  1810                                                                                                                                          ii                                                                                                                                                  SA-58
K/SWA

TABLE OF CONTENTS CON'T

   
SA
   
Number
RESTRICTED LETTER AGREEMENTS
  
     
     
6-1162-RLL-932R2
Promotional Support
SA-13
     
6-1162-RLL-933R20
Option Aircraft
SA-47
     
6-1162-RLL-934R3
Disclosure of Confidential
SA-14
 
Information
  
     
6-1162-RLL-935R1
Performance Guarantees
SA-1
     
6-1162-NIW-890
***
SA-39
     
     
6-1162-RLL-936R4
Certain Contractual Matters
SA-4
     
6-1162-RLL-937
Alternate Advance Payment Schedule
  
     
6-1162-RLL-938
***
  
     
6-1162-RLL-939R1
Certification Flight Test Aircraft
SA-1
     
6-1162-RLL-940R1
Training Matters
SA-1
     
6-1162-RLL-941R2
Other Matters
SA-13
     
6-1162-RLL-942
Open Configuration Matters
  
     
6-1162-RLL-943R1
Substitution Rights
SA-6
     
6-1162-RLL-944
***
  
     
6-1162-RLL-945
Comparison of 737-7H4 and 737-3H4
  
 
Block Fuel Burn
  
     
6-1162-RLL-1855R3
Additional Contractual Matters
SA-4
     
6-1162-RLL-1856
***
SA-1
     
6-1162-RLL-1857
Service Ready Validation Program
SA-1
 
Field Test
  
     
6-1162-RLL-1858R1
Escalation Matters
SA-4

 
P.A.  No.  1810                                                                                                                                          iii                                                                                                                                                 SA-58
K/SWA
 
TABLE OF CONTENTS CON'T
 
   
    SA
   
Number
RESTRICTED LETTER AGREEMENTS
  
     
6-1162-RLL-2036
Amortization of Costs for
  
 
Customer Unique Changes
SA-1
     
6-1162-RLL-2037
Reconciliation of the Aircraft
SA-1
 
Basic Price
  
     
6-1162-RLL-2073
Maintenance Training Matters
SA-1
     
6-1162-KJJ-054R1
Business Matters
  
     
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-KJJ-058
Additional Substitution Rights
SA-13
     
6-1162-KJJ-150
Flight Control Computer & Mode
SA-14
 
Control Panel Spares Matter
  
     
6-1162-MSA-185R3
Delivery Change Contractual
SA-21
 
Matters
  
     
6-1162-JMG-669R8
***
SA-54
     
6-1162-JMG-747R1
***
SA-36
     
6-1162-CHL-217
Rescheduled Flight Test Aircraft
SA-32
     
6-1162-NIW-606R1
***
SA-36
     
6-1162-NIW-640
Early Delivery of Two April 2004
SA-35
 
Aircraft
  
   
 
6-1162-NIW-889
Warranty - Exterior Color Schemes
SA-39
 
and Markings for YA143 and on
  
     
6-1162-NIW-1142
***
SA-43
     
     
6-1162-NIW-1369
***
SA-46



P.A.  No.  1810                                                                                                                                          iv                                                                                                                                                  SA-58
 
Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table

           
   
Base Aircraft Price
Special Features
Aircraft Basic Price
Base Year Dollars
Block A, B, C, D & E Aircraft
***
***
***
July 1992
Block F & G Aircraft
***
***
***
July 1992
Block H Aircraft
***
***
***
July 1992
Block I Aircraft
***
***
***
July 1992
Block J Aircraft
***
***
***
July 1992
Block K Aircraft
***
***
***
July 1992
Block K-W Aircraft
***
***
***
July 1992
Block L Aircraft
***
***
***
July 1992
Block T Aircraft
***
***
***
July 1999
Block T-W Aircraft
***
***
***
July 1999
Block T-W-1 / T-W-1a Aircraft
***
***
***
July 1999
Block T-W-2 / T-W-2a Aircraft
***
***
***
July 1999
           
Block K-W Aircraft: Block K airplanes with production winglets installation
    
Block T-W Aircraft: Block T airplanes with production winglets installation
    
Block T-W-1 / T-W-1a  Aircraft: Firm Aircraft contracted to deliver from May 1, 2006 through June 2008 at the signing
 of SA-47  -- (T-W-1a Aircraft -- Advance Payment Schedule per LA 6-1162-JGM-669)
    
Block T-W-2 / T-W-2a Aircraft: U-W-1 Option Aircraft which became Firm Aircraft after signing of SA-47 and
  
Firm Aircraft contracted to deliver in July 2008 forward at the signing of SA47 --
    
(T-W-2a Aircraft -- Advance Payment Schedule per LA 6-1162-JGM-669)
    


 
SWA                                                                                                                                                 & #160;    Page 1                                                                                                                                               SA-58

Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table

     
Escalation Estimate
  
Delivery
Number of
Aircraft
Adv Payment Base
  
Date
Aircraft
Block
Price Per A/P
Serial Number
Dec-2000
2
E
***
  
Jan-2001
1
E
***
  
Feb-2001
1
E
***
  
Mar-2001
2
E
***
  
Jun-2001
3
E
***
  
Sep-2001
3
E
***
  
Oct-1998
1
F
***
  
Nov-1998
2
F
***
  
Dec-1998
2
F
***
  
Mar-1999
2
G
***
  
Jun-1999
2
H
***
  
Jul-1999
1
H
***
  
Aug-1999
1
H
***
  
Sep-1999
2
H
***
  
Oct-1999
1
H
***
  
Mar-2000
1
H
***
  
Apr-2000
2
H
***
  
Sep-2000
1
H
***
  
Oct-2000
2
H
***
  
Mar-2001
2
H
***
  
Apr-2001
1
H
***
  
Oct-2001
3
H
***
  
Nov-2001
2
I
***
  
Dec-2001
1
I
***
  
Jan-2002
1
I
***
  
Mar-2002
4
I
***
  
Apr-2002
2
I
***
  
Dec-2002
2
I
***
  
May-2003
1
I
***
  
Jun-2003
2
I
***
  
Jul-2003
1
I
***
  
Aug-2003
1
I
***
  
Sep-2003
3
I
***
  
Nov-2002
1
J
***
  
Dec-2002
1
J
***
  
Nov-2003
2
J
***
  
Dec-2003
2
J
***
  
Mar-2004
1
J
***
  
Mar-2004
1
K
***
  
Apr-2004
3
K
***
  
May-2004
1
K
***
  
Jun-2004
2
K
***
  
Jul-2004
2
K
***
  
Sep-2004
1
K-W
***
  
Oct-2004
4
K-W
***
  
Oct-1999
1
L
***
  
Nov-1999
2
L
***
  
Dec-1999
1
L
***
  
Jun-2000
3
L
***
  
Jul-2000
3
L
***
  
Sep-2000
1
L
***
  

 
SWA                                                                                                                                                 & #160;    Page 2                                                                                                                                               SA-58
 
Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table

Oct-2000
1
L
***
  
Nov-2000
4
L
***
  
Dec-2000
1
L
***
  
Jan-2001
1
L
***
  
Feb-2001
1
L
***
  
Jul-2001
1
L
***
  
Sep-2001
1
L
***
  
Oct-2001
1
L
***
  
Mar-2003
2
L
***
  
Jul-2003
1
L
***
  
Aug-2003
2
L
***
  
Nov-2001
1
T
***
  
Feb-2002
1
T
***
  
Jan-2004
2
T
***
  
Feb-2004
1
T
***
  
Apr-2004
3
T
***
  
May-2004
1
T
***
  
Jun-2004
6
T
***
  
Jul-2004
2
T
***
  
Aug-2004
6
T-W
***
  
Sep-2004
4
T-W
***
  
Oct-2004
0
T-W
***
  
Nov-2004
3
T-W
***
  
Dec-2004
3
T-W
***
  
Jan-2005
5
T-W
***
  
Feb-2005
3
T-W
***
  
Mar-2005
4
T-W
***
  
Apr-2005
4
T-W
***
  
May-2005
2
T-W
***
  
Jun-2005
4
T-W
***
  
Jul-2005
2
T-W
***
  
Aug-2005
2
T-W
***
  
Sep-2005
3
T-W
***
  
Oct-2005
2
T-W
***
  
Nov-2005
2
T-W
***
  
Dec-2005
1
T-W
***
  
Jan-2006
1
T-W
***
  
Feb-2006
4
T-W
***
  
Mar-2006
3
T-W
***
  
Apr-2006
2
T-W
***
  
May-2006
5
T-W-1
***
  
Jun-2006
5
T-W-1
***
  
Jul-2006
3
T-W-1
***
  
Aug-2006
3
T-W-1
***
  
Sep-2006
3
T-W-1
***
  
Oct-2006
1
T-W-1
***
  
Nov-2006
2
T-W-1
***
  
Dec-2006
2
T-W-1
***
  
Jan-2007
2
T-W-1
***
  
Feb-2007
3
T-W-1
***
  
Mar-2007
2
T-W-1
***
  
Apr-2007
3
T-W-1
***
  

 
SWA                                                                                                                                                 & #160;    Page 3                                                                                                                                               SA-58
 
Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table

May-2007
3
T-W-1
***
  
Jun-2007
2
T-W-1
***
  
Jun-2007
1
T-W-1a
***
36528
Jul-2007
2
T-W-1
***
  
Jul-2007
1
T-W-1a
***
36610
Aug-2007
2
T-W-1
***
  
Aug-2007
3
T-W-1a
***
36611, 36632 & 36633
Sep-2007
2
T-W-1
***
  
Sep-2007
1
T-W-1a
***
36612
Oct-2007
3
T-W-1
***
  
Oct-2007
1
T-W-1a
***
36613
Nov-2007
1
T-W-1
***
  
Nov-2007
1
T-W-1a
***
36614
Dec-2007
2
T-W-1
***
  
Dec-2007
1
T-W-1a
***
36615
Jan-2008
1
T-W-1
***
  
Jan-2008
2
T-W-1a
***
36616 & 36617
Jan-2008
1
T-W-2
***
36887
Feb-2008
1
T-W-1
***
  
Feb-2008
3
T-W-1a
***
36618, 36619 & 36620
Mar-2008
1
T-W-1
***
  
Mar-2008
2
T-W-1a
***
36621 & 36622
Mar-2008
1
T-W-2
***
36888
Apr-2008
1
T-W-1
***
  
Apr-2008
2
T-W-1a
***
36623 & 36624
May-2008
1
T-W-1
***
  
May-2008
2
T-W-1a
***
36625 & 36626
Jun-2008
1
T-W-1
***
  
Jun-2008
2
T-W-1a
***
36627 & 36628
Jul-2008
2
T-W-2a
***
  
Jul-2008
2
T-W-2
***
36889 & 36890
Aug-2008
1
T-W-2a
***
  
Oct-2008
1
T-W-2a
***
  
Nov-2008
1
T-W-2a
***
  
Dec-2008
1
T-W-2a
***
  
Jan-2009
1
T-W-2a
***
  
Feb-2009
2
T-W-2a
***
  
Mar-2009
2
T-W-2a
***
  
Apr-2009
2
T-W-2a
***
  
Apr-2009
2
T-W-2
***
36899 & 36900
May-2009
2
T-W-2a
***
  
May-2009
1
T-W-2
***
36901
Jun-2009
2
T-W-2a
***
  
Jun-2009
1
T-W-2
***
36902
Jul-2009
2
T-W-2a
***
  
Aug-2009
1
T-W-2a
***
  
Sep-2009
1
T-W-2a
***
  
Oct-2009
1
T-W-2a
***
  
Nov-2009
1
T-W-2a
***
  
Dec-2009
1
T-W-2a
***
  
Jan-2010
1
T-W-2a
***
  

 
SWA                                                                                                                                                 & #160;    Page 4                                                                                                                                               SA-58
 
Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table

Feb-2010
1
T-W-2a
***
  
Mar-2010
1
T-W-2a
***
  
Apr-2010
1
T-W-2a
***
  
May-2010
1
T-W-2a
***
  
Jun-2010
1
T-W-2a
***
  
Jul-2010
1
T-W-2a
***
  
Aug-2010
1
T-W-2a
***
  
Sep-2010
1
T-W-2a
***
  
Oct-2010
1
T-W-2a
***
  
Jan-2011
1
T-W-2a
***
  
Feb-2011
1
T-W-2a
***
  
Mar-2011
1
T-W-2a
***
  
Apr-2011
1
T-W-2a
***
  
May-2011
1
T-W-2a
***
  
Jun-2011
1
T-W-2a
***
  
Jul-2011
1
T-W-2a
***
  
Aug-2011
1
T-W-2a
***
  
Sep-2011
1
T-W-2a
***
  
Oct-2011
1
T-W-2a
***
  
Jan-2012
1
T-W-2a
***
  
Feb-2012
1
T-W-2a
***
  
Mar-2012
1
T-W-2a
***
  
Apr-2012
1
T-W-2a
***
  
May-2012
1
T-W-2a
***
  
Jun-2012
1
T-W-2a
***
  
Jul-2012
1
T-W-2a
***
  
Aug-2012
1
T-W-2a
***
  
Sep-2012
1
T-W-2a
***
  
Oct-2012
1
T-W-2a
***
  
Jan-2013
1
T-W-2
***
36891
Jan-2013
1
T-W-2a
***
  
Feb-2013
1
T-W-2a
***
  
Mar-2013
1
T-W-2a
***
  
Mar-2013
1
T-W-2
***
  
Apr-2013
1
T-W-2
***
  
May-2013
1
T-W-2
***
  
Jun-2013
2
T-W-2
***
  
Jul-2013
1
T-W-2
***
  
Aug-2013
2
T-W-2
***
  
Sep-2013
2
T-W-2
***
  
Oct-2013
2
T-W-2
***
  
Nov-2013
1
T-W-2
***
  
Dec-2013
2
T-W-2
***
  
Jan-2014
1
T-W-2
***
  
Feb-2014
1
T-W-2
***
  
Mar-2014
1
T-W-2
***
  
Apr-2014
1
T-W-2
***
  
May-2014
1
T-W-2
***
  
Jun-2014
1
T-W-2
***
  
Jul-2014
1
T-W-2
***
  
Aug-2014
1
T-W-2
***
  
Sep-2014
1
T-W-2
***
  
Oct-2014
1
T-W-2
***
  



SWA                                                                                                                                                 & #160;    Page 6                                                                                                                                               SA-58
 
Table 2 to Purchase Agreement No. 1810
(Letter Agreement No. 6-1162-RLL-933R20)
Option Aircraft Information Table

Price Description of Option Aircraft:
      
   
Base Aircraft Price
Special Features
Aircraft Basic Price
Base Year Dollars
Block U Option Aircraft
***
***
***
July 1999
(without Winglets)
        
Block U-W Option Aircraft
***
***
***
July 1999
(with Winglets)
        
Block U-W-1 Option Aircraft
***
***
***
July 1999
           
           
Delivery of Purchase Right Aircraft:
Quantity
54
  
Delivery Period of Purchase Right Aircraft:
Complete delivery not later than Dec. 31, 2014
Condition of Offer for Purchase Right Aircraft:
Subject to Available Position
  
           
           
           
Remaining Option Aircraft:
  
83
    


 
SWA                                                                                                                                                      Page 1                                                                                                                                               SA-58

Table 2 to Purchase Agreement No. 1810
(Letter Agreement No. 6-1162-RLL-933R20)
Option Aircraft Information Table

Aircraft
Number of
Option
Adv Payment Base
  
Delivery
Option
Aircraft
Price Per
  
Mo. & Yr.
Aircraft
Block
Option Aircraft
Option Exercise
Jun-2009
1
U-W-1
***
February 1, 2008
Jul-2009
2
U-W-1
***
March 3, 2008
Aug-2009
1
U-W-1
***
April 1, 2008
Oct-2009
1
U-W-1
***
June 2, 2008
Nov-2009
1
U-W-1
***
July 1, 2008
Dec-2009
1
U-W-1
***
August 1, 2008
Jan-2010
1
U-W-1
***
September 1, 2008
Feb-2010
1
U-W-1
***
October 1, 2008
Mar-2010
1
U-W-1
***
November 3, 2008
Apr-2010
1
U-W-1
***
December 1, 2008
May-2010
2
U-W-1
***
January 1, 2009
Jun-2010
3
U-W-1
***
February 2, 2009
Jul-2010
2
U-W-1
***
March 2, 2009
Aug-2010
2
U-W-1
***
April 1, 2009
Sep-2010
2
U-W-1
***
May 1, 2009
Oct-2010
3
U-W-1
***
June 1, 2009
Nov-2010
3
U-W-1
***
July 1, 2009
Dec-2010
3
U-W-1
***
August 3, 2009
Jan-2011
1
U-W-1
***
September 1, 2009
Feb-2011
2
U-W-1
***
October 1, 2009
Mar-2011
1
U-W-1
***
November 2, 2009
Apr-2011
1
U-W-1
***
December 1, 2009
May-2011
2
U-W-1
***
January 1, 2010
Jun-2011
2
U-W-1
***
February 1, 2010
Jul-2011
2
U-W-1
***
March 1, 2010
Aug-2011
2
U-W-1
***
April 1, 2010
Sep-2011
2
U-W-1
***
May 3, 2010
Oct-2011
2
U-W-1
***
June 1, 2010
Nov-2011
3
U-W-1
***
July 1, 2010
Dec-2011
2
U-W-1
***
August 2, 2010
Jan-2012
3
U-W-1
***
September 1, 2010
Feb-2012
3
U-W-1
***
October 1, 2010
Mar-2012
2
U-W-1
***
November 1, 2010
Apr-2012
3
U-W-1
***
December 1, 2010
May-2012
3
U-W-1
***
January 3, 2011
Jun-2012
3
U-W-1
***
February 1, 2011
Jul-2012
2
U-W-1
***
March 1, 2011
Aug-2012
2
U-W-1
***
April 1, 2011
Sep-2012
2
U-W-1
***
May 2, 2011
Oct-2012
2
U-W-1
***
June 1, 2011
Nov-2012
3
U-W-1
***
July 1, 2011
Dec-2012
2
U-W-1
***
August 1, 2011
Total
83
      


SWA                                                                                                                                                 & #160;    Page 2                                                                                                                                               SA-58