Supplemental Agreement No.55 to Purchase Agreement No.1810 between THE BOEING COMPANY and SOUTHWEST AIRLINES CO. Relating to Boeing Model 737-7H4 Aircraft (the Aircraft)

Contract Categories: Business Finance - Purchase Agreements
EX-10.2 3 ex10_2.htm EXHIBIT 10.2 SUPPLEMENTAL AGREEMANT NO. 55 ex10_2.htm
                                                                                                                                                                                                                                                                      60;                                             Exhibit 10.2
                                                                                                                                                                       60;                                                                                                        CONFIDENTIAL TREATMENT
Supplemental Agreement No. 55

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 August 31, 2007, 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, Boeing and Buyer have agreed to revise the Contract Delivery Month of one 737-7H4 Aircraft bearing Manufacturer’s Serial Number 32542 to October 2007 from November 2007 (Acceleration 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.

***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-55-1
K/SWA


2.  
Table 1 is deleted in its entirety and replaced by a new Table 1 attached hereto, reflecting deletion of one Block T-W-1 Aircraft with a Contract Delivery Month of November 2007
and addition of one Block T-W-1 Aircraft with a Contract Delivery Month of October 2007.

3.        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 (400) Model 737-7H4 Aircraft, eighty-six (86) 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.

4.        There will be no Advance Payments adjustment relating to the Acceleration Aircraft made at execution of this Supplemental Agreement. The Advance Payment received by Boeing from Buyer for the Acceleration Aircraft will be applied to the Purchase Price for the Acceleration Aircraft along with applicable credits at the time of delivery.

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/ Scott Topping
   
Its:    Attorney-In-Fact
Its:VP & Treasurer




 
P.A.  No.  1810                                                SA-55-2
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-55
K/SWA

TABLE OF CONTENTS CON'T


   
SA
  
   
Number
  
       
TABLE
      
       
1.
Aircraft Information Table
SA-55
  
       
2.
Option Aircraft Information Table
SA-54
  
       
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-55
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 Information
SA-14
     
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 Field Test
SA-1
     
6-1162-RLL-1858R1
Escalation Matters
SA-4

 
P.A.  No.  1810                                                                                                                                  iii                                                                                                                                                    SA-55
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 Basic Price
SA-1
     
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 Control Panel Spares Matter
SA-14
     
6-1162-MSA-185R3
Delivery Change Contractual Matters
SA-21
     
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 YA 143 and on
  
     
6-1162-NIW-1142
***
SA-43
     
     
6-1162-NIW-1369
***
SA-46


P.A.  No.  1810                                                                                                                                  iv                                                                                                                                                    SA-55
K/SWA

 
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                                                                                                                                                         Page 1                                                                                                                                                SA-55
 
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
***
 


SWA                                                                                                                                                         Page 2                                                                                                                                                SA-55
Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table

  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
***
 
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
***
 

SWA                                                                                                                                                         Page 3                                                                                                                                                SA-55
 
Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table

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
***
 
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
***
 


SWA                                                                                                                                                         Page 4                                                                                                                                                SA-55
 
Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table

  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
***
 
May-2009
2
T-W-2a
***
 
Jun-2009
2
T-W-2a
***
 
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
***
 
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
***
 


SWA                                                                                                                                                         Page 5                                                                                                                                                SA-55

Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table

  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                                                                                                                                                         Page 6                                                                                                                                                SA-55