Purchase Agreement No. 1810
Exhibit 10.1
Supplemental Agreement No. 41
to
Purchase Agreement No. 1810
between
THE BOEING COMPANY
and
SOUTHWEST AIRLINES CO.
Relating to Boeing Model 737-7H4 Aircraft
THIS SUPPLEMENTAL AGREEMENT, entered into as of November 17, 2004, 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 three (3) March 2006 Block U Option Aircraft (as Block T-W 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 K/SWA | SA-41-1 |
Exhibit 10.1
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.
NOTE Buyer now has forty-five (45) banked Rollover Option Aircraft as a result of the option exercises covered by Supplemental Agreement No. 21, 23, 24, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40 and 41 that may be converted to Option Aircraft at a future date subject to the terms of Letter Agreement No. 6-1162-RLL-933R19.
4. Attachment A to Letter Agreement No. 6-1162-JMG-669R2 is replaced by updated Attachment A attached hereto.
5. All references in the Letter Agreements associated with Purchase Agreement No. 1810 shall be deemed to refer to the purchase by Buyer of two hundred eighty-one (281) Model 737-7H4 Aircraft, Forty-two (42) Model 737-7H4 Option Aircraft and two hundred seventeen (217) Model 737-7H4 Rollover Option Aircraft, to the extent such reference is not specifically addressed herein.
8. The Advance Payments due upon signing assuming execution of this Supplemental Agreement on or before November 30, 2004 are:
*** for three (3) March 2006 aircraft
Buyer will pay the *** directly to Boeing on or before Tuesday, November 30, 2004.
P.A. No. 1810 K/SWA | SA-41-2 |
Exhibit 10.1
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 K/SWA | SA-41-3 |
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-28 | |||
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 K/SWA | i | SA-41 |
TABLE OF CONTENTS CONT
SA | ||||
Number | ||||
TABLE | ||||
1. | Aircraft Information Table | SA-41 | ||
2. | Option Aircraft Information Table | SA-41 | ||
EXHIBITS | ||||
A | Aircraft Configuration | SA-36 | ||
B | Product Assurance Document | SA-1 | ||
C | Customer Support Document | |||
D | Price Adjustments Due to Economic Fluctuations Aircraft | SA-13 | ||
E | Buyer Furnished Equipment Provisions Document | |||
F | Defined Terms Document | |||
LETTER AGREEMENTS | ||||
1810-1 | Waiver of Aircraft Demonstration Flight |
P.A. No. 1810 K/SWA | ii | SA-41 |
TABLE OF CONTENTS CONT
SA | ||||
Number | ||||
RESTRICTED LETTER AGREEMENTS | ||||
6-1162-RLL-932R2 | Promotional Support | SA-13 | ||
6-1162-RLL-933R19 | Option Aircraft | SA-28 | ||
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 | Airframe Maintenance Material Cost Protection Program | |||
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 K/SWA | iii | SA-41 |
TABLE OF CONTENTS CONT
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-054 | Business Matters | SA-13 | ||
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-669R2 | Special Matters | SA-36 | ||
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 | *** | SA-35 | ||
6-1162-NIW-889 | Warranty Exterior Color Schemes and Markings for YA143 and on | SA-39 |
P.A. No. 1810 K/SWA | iv | SA-41 |
Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table
Base Aircraft | Special | Aircraft Basic | Base Year | |||||||||||
Price | Features | Price | 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 K-W Aircraft: Block K airplanes with production winglets installation
Block T-W Aircraft: Block T airplanes with production winglets installation
Escalation Estimate | |||||||||||||||
Adv Payment | |||||||||||||||
Delivery | Number of | Aircraft | Base | ||||||||||||
Date | Aircraft | Block | Price Per A/P | ||||||||||||
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 | *** | ||||||||||||
Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table
Escalation Estimate | |||||||||||||||
Adv Payment | |||||||||||||||
Delivery | Number of | Aircraft | Base | ||||||||||||
Date | Aircraft | Block | Price Per A/P | ||||||||||||
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 | *** | ||||||||||||
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 | *** | ||||||||||||
Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table
Escalation Estimate | |||||||||||||||
Adv Payment | |||||||||||||||
Delivery | Number of | Aircraft | Base | ||||||||||||
Date | Aircraft | Block | Price Per A/P | ||||||||||||
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 | *** | ||||||||||||
May-2006 | 3 | T-W | *** | ||||||||||||
Jun-2006 | 4 | T-W | *** | ||||||||||||
Jul-2006 | 1 | T-W | *** | ||||||||||||
Aug-2006 | 3 | T-W | *** | ||||||||||||
Sep-2006 | 3 | T-W | *** | ||||||||||||
Nov-2006 | 2 | T-W | *** | ||||||||||||
Dec-2006 | 2 | T-W | *** | ||||||||||||
Jan-2007 | 2 | T-W | *** | ||||||||||||
Feb-2007 | 3 | T-W | *** | ||||||||||||
Mar-2007 | 2 | T-W | *** | ||||||||||||
Apr-2007 | 2 | T-W | *** | ||||||||||||
May-2007 | 2 | T-W | *** | ||||||||||||
Jun-2007 | 2 | T-W | *** | ||||||||||||
Jul-2007 | 2 | T-W | *** | ||||||||||||
Aug-2007 | 2 | T-W | *** | ||||||||||||
Sep-2007 | 2 | T-W | *** | ||||||||||||
Oct-2007 | 2 | T-W | *** | ||||||||||||
Nov-2007 | 2 | T-W | *** | ||||||||||||
Dec-2007 | 2 | T-W | *** | ||||||||||||
Jan-2008 | 1 | T-W | *** | ||||||||||||
Feb-2008 | 1 | T-W | *** | ||||||||||||
Mar-2008 | 1 | T-W | *** | ||||||||||||
Apr-2008 | 1 | T-W | *** | ||||||||||||
May-2008 | 1 | T-W | *** | ||||||||||||
Jun-2008 | 1 | T-W | *** | ||||||||||||
Table 2 to Purchase Agreement No. 1810
(Letter Agreement No. 6-1162-RLL-933R19)
Option Aircraft Information Table
Base Aircraft | Special | Aircraft | |||||||
Price | Features | Basic Price | Base Year Dollars | ||||||
*** | *** | *** | July 1999 | ||||||
*** | *** | *** | July 1999 |
Option Aircraft Block |
Q |
R |
S |
V |
42 |
Adv Payment | ||||||||
Option | Base | |||||||
Aircraft | Price Per | |||||||
Block | Option Aircraft | Option Exercise | ||||||
U-W | *** | December 1, 2004 | ||||||
U-W | *** | January 1, 2005 | ||||||
U-W | *** | February 1, 2005 | ||||||
U-W | *** | March 1, 2005 | ||||||
U-W | *** | June 1, 2005 | ||||||
U-W | *** | December 1, 2005 | ||||||
U-W | *** | January 1, 2006 | ||||||
U-W | *** | February 1, 2006 | ||||||
U-W | *** | March 1, 2006 | ||||||
U-W | *** | April 1, 2006 | ||||||
U-W | *** | May 1, 2006 | ||||||
U-W | *** | June 1, 2006 | ||||||
U-W | *** | July 1, 2006 | ||||||
U-W | *** | August 1, 2006 | ||||||
U-W | *** | September 1, 2006 | ||||||
U-W | *** | October 1, 2006 | ||||||
U-W | *** | November 1, 2006 | ||||||
U-W | *** | December 1, 2006 | ||||||
U-W | *** | January 1, 2007 | ||||||
U-W | *** | February 1, 2007 | ||||||
U-W | *** | March 1, 2007 | ||||||
U-W | *** | April 1, 2007 | ||||||
U-W | *** | May 1, 2007 | ||||||
U-W | *** | June 1, 2007 | ||||||
U-W | *** | July 1, 2007 | ||||||
U-W | *** | August 1, 2007 | ||||||
Southwest Airlines Co.
Attachment A to 6-1162-JMG-669R2
***
SA-41