Supplemental Agreement No. 2 to Purchase AgreementNo. 3860 between TheBoeing Company and UnitedAirlines, Inc. Relating to Boeing Model 787 Aircraft

Contract Categories: Business Finance - Purchase Agreements
EX-10.197 9 d624298dex10197.htm EX-10.197 EX-10.197

Exhibit 10.197

CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION IN ACCORDANCE WITH THE SECURITIES ACT OF 1933, AS AMENDED, AND RULE 24B-2 PROMULGATED THEREUNDER. OMITTED INFORMATION HAS BEEN REPLACED WITH ASTERISKS.

Supplemental Agreement No. 2

to

Purchase Agreement No. 3860

between

The Boeing Company

and

United Airlines, Inc.

Relating to Boeing Model 787 Aircraft

THIS SUPPLEMENTAL AGREEMENT, entered into as of December 16, 2013, by and between THE BOEING COMPANY (Boeing) and UNITED AIRLINES, INC. (a Delaware corporation formerly known as Continental Airlines, Inc. and successor by merger to United Air Lines, Inc.) (Customer);

WHEREAS, the parties hereto entered into Purchase Agreement No. 3860 dated September 27, 2012, as amended and supplemented (Purchase Agreement), relating to the purchase and sale of Boeing Model 787 aircraft (Aircraft). This Supplemental Agreement is an amendment to the Purchase Agreement;

WHEREAS, Boeing and Customer agree to substitute *** Model 787-*** aircraft (787-*** Aircraft) in lieu of Model 787-*** aircraft (787-*** Aircraft) and to revise the scheduled delivery for these Aircraft as follows:

 

Manufacturer Serial

Number

 

787-*** Aircraft

Delivery Month

 

787-*** Aircraft

Delivery Month ***

***

  ***   ***

***

  ***   ***

WHEREAS, Boeing and Customer have previously agreed to accelerate the promotional support funds for the Aircraft so that such promotional support funds were made available Customer on ***; and

WHEREAS, Customer has agreed to configure the Aircraft with engines provided by ***;

 

UAL-PA-3860      SA-2, Page 1
  BOEING / UNITED AIRLINES, INC. PROPRIETARY   


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

1. Table of Contents and Articles.

Remove and replace, in its entirety, the “Table of Contents,” with the Table of Contents attached hereto, to reflect the incorporation of this Supplemental Agreement No. 2 into the Purchase Agreement.

2. Tables.

2.1. Table 1 is replaced in its entirety with the Table 1 attached hereto that is related to and references this Supplemental Agreement for Model 787-8 aircraft.

2.2. Table 1 is replaced in its entirety with the Table 1 attached hereto that is related to and references this Supplemental Agreement for Model 787-9 aircraft.

2.3. Table 1 is replaced in its entirety with the Table 1 attached hereto that is related to and references this Supplemental Agreement for Model 787-10 aircraft.

3. Letter Agreements:

Remove and replace, in its entirety, Letter Agreement UAL-PA-03860-LA-1209416 entitled “Promotional Support” with the revised Letter Agreement UAL-PA-03860-LA-1209416R1 attached hereto.

The Purchase Agreement will be deemed to be supplemented to the extent herein provided as of the date hereof and as so supplemented will continue in full force and effect.

[The rest of the page is intentionally blank. Signature page follows.]

 

 

UAL-PA-3860      SA-2, Page 2
  BOEING / UNITED AIRLINES, INC. PROPRIETARY   


EXECUTED IN DUPLICATE as of the day and year first written above.

 

THE BOEING COMPANY       UNITED AIRLINES, INC.

/s/ ***

     

/s/ Gerald Laderman

Signature       Signature

Attorney-in-Fact

     

Senior Vice President – Finance, Procurement and Treasurer

Title       Title

 

 

UAL-PA-3860      SA-2, Page 3
  BOEING / UNITED AIRLINES, INC. PROPRIETARY   


TABLE OF CONTENTS

 

     SA NUMBER  

ARTICLES

  
Article 1.  

Quantity, Model and Description

     SA-1   
Article 2.  

Delivery Schedule

     SA-1   
Article 3.  

Price

     SA-1   
Article 4.  

Payment

     SA-1   
Article 5.  

Additional Terms

     SA-1   
TABLE     
    1.  

787-8 with GENX-1B*** Engines Aircraft Information Table

     SA-2   
    1.  

787-9 with GENX-1B*** Engines Aircraft Information Table

     SA-2   
    1.  

787-10 with GENX-1B*** Engines Aircraft Information Table

     SA-2   
EXHIBITS     
    A1.  

787-8 Aircraft Configuration

  
    A2.  

787-9 Aircraft Configuration

  
    A3.  

787-10 Aircraft Configuration

     SA-1   
    B.  

Aircraft Delivery Requirements and Responsibilities

  
SUPPLEMENTAL EXHIBITS     
AE1.  

Escalation Adjustment/Airframe and Optional Features

  
BFE1.  

BFE Variables

     SA-1   
CS1.  

Customer Support Document

  
EE1.  

Engine Escalation/Engine Warranty ***

  
SLP1.  

Service Life Policy Components

  
LETTER AGREEMENTS     
UAL-PA-03860-LA-1209247  

787 e-Enabling

  
U AL-PA-03860-LA-1209264  

Open Configuration Matters

  

 

 

P.A. 3860   TABLE OF CONTENTS, Page 1 of 3    SA-1
  BOEING/UNITED AIRLINES, INC. PROPRIETARY   


TABLE OF CONTENTS, CONTINUED

 

     SA Number  

LETTER AGREEMENTS

    
UAL-PA-03860-LA-1209265R1  

Option Aircraft

     SA-1   
 

Attachment A, 787-*** Option Aircraft Delivery, Description, Price and Advance Payments (DELETED)

     SA-1   
 

Attachment B-1, 787-*** with GENX-1B*** Engines: Option Aircraft Delivery, Description, Price and Advance Payments

     SA-1   
 

Attachment B-2, 787-*** with TRENT1000-*** Engines: Option Aircraft Delivery, Description, Price and Advance Payments

     SA-1   
UAL-PA-03860-LA-1209409  

Spare Parts Initial Provisioning

  
UAL-PA-03860-LA-1209410  

Special Matters Relating to COTS Software and End User License Agreements

  
UAL-PA-03860-LA-1209411  

Special Terms – Seats and In-flight Entertainment

  
UAL-PA-03860-LA-1209417  

Model 787 Post-Delivery Software & Data Loading

  
CONFIDENTIAL LETTER AGREEMENTS   
UAL-PA-03860-LA-1209236R1  

Model Substitution

     SA-1   
 

Attachment A, 787-9 Airframe Pricing of Substitution Aircraft with General Electric GEnx-1B*** and Rolls Royce Trent 1000-J engines

     SA-1   
 

Attachment B, 787-10 with General Electric GEnx-1B*** and Rolls Royce TRENT 1000-*** Engines

     SA-1   
 

Attachment C, 787-8 with General Electric GEnx-1B*** and Rolls Royce TRENT 1000-***

     SA-1   

 

P.A. 3860   TABLE OF CONTENTS, Page 2 of 3    SA-2
  BOEING/UNITED AIRLINES, INC. PROPRIETARY   


TABLE OF CONTENTS, CONTINUED

 

     SA NUMBER  
CONFIDENTIAL LETTER AGREEMENTS, continued   
UAL-PA-03860-LA-1209412  

Spare Parts Commitment

  
UAL-PA-03860-LA-1209413R1  

Special Matters

     SA-1   
UAL-PA-03860-LA-1209414  

Other Special Matters

  
UAL-PA-03860-LA-1209413A1  

Other Special Matters—Amendment 1

     SA-1   
UAL-PA-03860-LA-1209416R1  

Promotional Support

     SA-2   
UAL-PA-03860-LA-1209430  

Performance Guarantees

  
UAL-PA-03860-LA-1209455  

*** TERMINATED

     SA-1   
UAL-PA-03860-LA-1209429  

***

  
UAL-PA-03860-LA-1209618R1  

Alternate Engine Selection

     SA-1   
6-1162-ELP-0794  

*** Program***

  
6-1162-ELP-0795  

*** Program***

  
UAL-PA-03860-LA-1301368  

Performance Guarantees (787-10)

     SA-1   
UAL-PA-03860-LA-1301373  

787-10 Aircraft Open Configuration and Other Matters

     SA-1   
UAL-PA-03860-LA-1301375  

Provisions Relating to Customer’s *** for 787-10 Aircraft

     SA-1   
UAL-PA-03860-LA-1301377  

787-10 ***

     SA-1   
UAL-PA-03860-LA-1301380  

787-10 Program Launch

     SA-1   

 

P.A. 3860   TABLE OF CONTENTS, Page 3 of 3    SA-2
  BOEING/UNITED AIRLINES, INC. PROPRIETARY   


SUPPLEMENTAL AGREEMENTS

   DATED AS OF  

Supplemental Agreement No. 1

     June 17, 2013   

Supplemental Agreement No. 2

     December 16, 2013   

 

P.A. 3860   TABLE OF CONTENTS, Page 1 of 3    SA-2
  BOEING/UNITED AIRLINES, INC. PROPRIETARY   


Table 1 to Purchase Agreement No. 3860

787-8 Aircraft with GENX-1B*** Engines Delivery, Description, Price and Advance Payments

 

Airframe Model/MTOW:

   787-8   *** pounds       

Detail Specification:

     * **       

Engine Model/Thrust:

   GENX-1B***   *** pounds       

Airframe Price Base Year/Escalation Formula:

       * **        * ** 

Airframe Price:

       $***     

Engine Price Base Year/Escalation Formula:

       * **        * ** 

Optional Features:

       $***              
      

 

             

Sub-Total of Airframe and Features:

       $***     

Airframe 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:

       $***     

Engine Escalation Data:

        

Seller Purchased Equipment (SPE) Estimate:

       $***     

Base Year Index (ECI):

         * **   

In Flight Entertainment (IFE) Fixed$:

       $***     

Base Year Index (CPI):

         * **   

 

Delivery

Date

   Number of
Aircraft
  Escalation
Factor
(Airframe)
  Escalation
Factor
(Engine)
  Serial
Number
  Escalation Estimate
Adv Payment Base
Price Per A/P
  Advance Payment Per Aircraft
(Amts. Due/Mos. Prior to Delivery):
             ***
***
  ***
***
  ***
***
  ***
***
***    ***   ***   ***   ***   $***   $***   $***   $***   $***
***    ***   ***   ***   ***   $***   $***   $***   $***   $***
***    ***   ***   ***   ***   $***   $***   $***   $***   $***
***    ***   ***   ***   ***   $***   $***   $***   $***   $***
***    ***   ***   ***   ***   $***   $***   $***   $***   $***
***    ***   ***   ***   ***   $***   $***   $***   $***   $***
***    ***   ***   ***   ***   $***   $***   $***   $***   $***
  

 

               
Total    ***                
  

 

               

All pricing and payment amounts are in United States Dollars (USD).

 

UAL-PA-03860, APR 66731-IF.TXT    Boeing Proprietary    Table 1 787-8 with GENX-1B*** Engines Page 1, SA-2


Table 1 to Purchase Agreement No. 3860

*** 787-9 *** Aircraft Executed via SA-1

FOR *** PURPOSES ONLY: UNTIL *** PRIOR TO APPLICABLE AIRCRAFT DELIVERY

 

Airframe Model/MTOW:

  787-8   *** pounds       Detail Specification:     ***         

Engine Model/Thrust:

  GENX-1B***     *** pounds       Airframe Price Base Year/Escalation Formula:       ***          ***   

Airframe Price:

        $***        Engine Price Base Year/Escalation Formula:       ***          ***   

Optional Features:

        $***              
     

 

 

             

Sub-Total of Airframe and Features:

        $***        Airframe 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:

        $***        Engine Escalation Data:        

Seller Purchased Equipment (SPE) Estimate:

        $***        Base Year Index (ECI):         ***     

In Flight Entertainment (IFE) Fixed$:

        $***        Base Year Index (CPI):         ***     

 

Delivery

Date

   ***
Prior to
Applicable

Delivery
  Number of
Aircraft
  Escalation
Factor
(Airframe)
  Escalation
Factor
(Engine)
  Serial
Number
  Escalation Estimate
Adv Payment Base
Price Per A/P
  Advance Payment Per Aircraft
(Amts. Due/Mos. Prior to Delivery):
               ***
***
  ***
***
  ***
***
  ***
***
                    

***

   ***   ***   ***   ***   ***   $***   $***   $***   $***   $***

***

   ***   ***   ***   ***   ***   $***   $***   $***   $***   $***

***

   ***   ***   ***   ***   ***   $***   $***   $***   $***   $***

***

   ***   ***   ***   ***   ***   $***   $***   $***   $***   $***

***

   ***   ***   ***   ***   ***   $***   $***   $***   $***   $***
    

 

               

Total

     ***                
    

 

               

All pricing and payment amounts are in United States Dollars (USD).

 

UAL-PA-03860, APR 66731-IF.TXT    Boeing Proprietary    Table 1 787-8 with GENX-1B*** Engines Page 1, SA-2


Table 1 to Purchase Agreement No. 3860

787-9 Aircraft with GENX-1B*** Engines Delivery, Description, Price and Advance Payments

APBP beginning *** prior to applicable delivery for *** 787-9 aircraft only

 

Airframe Model/MTOW:

   787-9     * ** pounds         Detail Specification:      * **       

Engine Model/Thrust:

   GENX-1B***¹     * ** pounds         Airframe Price Base Year/Escalation Formula:        * **        * ** 

Airframe Price:

         $ ***       Engine Price Base Year/Escalation Formula:        * **        * ** 

Optional Features:

         $ ***              
      

 

 

           

Sub-Total of Airframe and Features:

         $ ***       Airframe 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:

         $ ***       Engine Escalation Data:         

Seller Purchased Equipment (SPE) Estimate:

         $ ***       Base Year Index (ECI):          * **   

In Flight Entertainment (IFE) Estimate:

         $ ***       Base Year Index (CPI):          * **   

 

Delivery

Date

   *** Prior to
Applicable
Delivery
   Number of
Aircraft
   Escalation
Factor
(Airframe)
  Escalation
Factor
(Engine)
  Serial
Number
  Escalation Estimate
Adv Payment Base
Price Per A/P
  Advance Payment Per Aircraft
(Amts. Due/Mos. Prior to Delivery):
                 ***
***
  ***
***
  ***
***
  ***
***
                      

*** 

   ***    ***    ***   ***   ***    $***   $ ***    $***    $***    $*** 

***

   ***    ***    ***   ***   ***    $***   $***    $***    $***    $*** 

***

   ***    ***    ***   ***   ***   $***   $***   $***   $***   $***

***

   ***    ***    ***   ***   ***   $***   $***   $***   $***   $***

***

   ***    ***    ***   ***   ***   $***   $***   $***   $***   $***

***

   ***    ***    ***   ***   ***   $***   $***   $***   $***   $***

***

   ***    ***    ***   ***   ***   $***   $***   $***   $***   $***
     

 

                

Total

      ***                 
     

 

                

 

¹ *** on a *** to delivery GEnx-1B*** at the GEnx-1B*** price.

All pricing and payment amounts are in United States Dollars (USD).

 

UAL-PA-03860, APR 66372-IF.TXT    Boeing Proprietary    Table 1 787-9 with GENX-1B*** Engines Page 1, SA-2


Table 1 to Purchase Agreement No. 3860

787-10 Aircraft with GENX-1B*** Engines Delivery, Description, Price and Advance Payments

(787-10/GE/***)

 

Airframe Model/MTOW:

  787-10     *** pounds        Detail Specification:     ***           

Engine Model/Thrust:

  GENX-1B***¹     *** pounds        Airframe Price Base Year/Escalation Formula:       ***          ***     

Airframe Price:

        $***      Engine Price Base Year/Escalation Formula:       ***          ***     

Optional Features:

        $***               
     

 

 

             

 

Sub-Total of Airframe and Features:

        $***      Airframe 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:

        $***      Engine Escalation Data:          
                 

 

In-Flight Entertainment (IFE) Estimate:

        $***      Base Year Index (ECI):         ***       
        Base Year Index (CPI):         ***       

Refundable Deposit/Aircraft at Proposal Accept:

        $***               

 

          Escalation    Escalation         Escalation Estimate    Advance Payment Per Aircraft
(Amts. Due/Mos. Prior to Delivery):
Delivery    Number of    Factor    Factor    Serial    Adv Payment Base    ***    ***    ***    ***

Date

   Aircraft    (Airframe)    (Engine)    Number    Price Per A/P    ***    ***    ***    ***

***

   ***    ***    ***    ***    $***    $***    $***    $***    $***

***

   ***    ***    ***    ***    $***    $***    $***    $***    $***

***

   ***    ***    ***    ***    $***    $***    $***    $***    $***

***

   ***    ***    ***    ***    $***    $***    $***    $***    $***

***

   ***    ***    ***    ***    $***    $***    $***    $***    $***

***

   ***    ***    ***    ***    $***    $***    $***    $***    $***

***

   ***    ***    ***    ***    $***    $***    $***    $***    $***

***

   ***    ***    ***    ***    $***    $***    $***    $***    $***

***

   ***    ***    ***    ***    $***    $***    $***    $***    $***

***

   ***    ***    ***    ***    $***    $***    $***    $***    $***

***

   ***    ***    ***    ***    $***    $***    $***    $***    $***

***

   ***    ***    ***    ***    $***    $***    $***    $***    $***

***

   ***    ***    ***    ***    $***    $***    $***    $***    $***

 

APR 67002-IF.TXT    Boeing Proprietary    787-10 with GE Engines Table 1 to SA-2, Page 1


Table 1 to Purchase Agreement No. 3860

787-10 Aircraft with GENX-1B*** Engines Delivery, Description, Price and Advance Payments

(787-10/GE/***)

 

          Escalation    Escalation         Escalation Estimate    Advance Payment Per Aircraft
(Amts. Due/Mos. Prior to Delivery):
Delivery    Number of    Factor    Factor    Serial    Adv Payment Base    ***    ***    ***    ***

Date

   Aircraft    (Airframe)    (Engine)    Number    Price Per A/P    ***    ***    ***    ***

***

   ***    ***    ***    ***    $***    $***    $***    $***    $***

***

   ***    ***    ***    ***    $***    $***    $***    $***    $***

***

   ***    ***    ***    ***    $***    $***    $***    $***    $***

***

   ***    ***    ***    ***    $***    $***    $***    $***    $***

***

   ***    ***    ***    ***    $***    $***    $***    $***    $***
  

 

                       

Total:

   ***                        

 

¹ *** on a *** to delivery GEnx-1B*** at the GEnx-1B***.

All pricing and payment amounts are in United States Dollars (USD).

 

APR 67002-IF.TXT

   Boeing Proprietary    787-10 with GE Engines Table 1 to SA-2, Page 2


    

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

UAL-PA-03860-LA-1209416R1

United Airlines, Inc.

233 South Wacker Drive

Chicago, Illinois 60606

 

Subject:    Promotional Support
Reference:   

a)      Purchase Agreement No. 3860 (the Purchase Agreement) between The Boeing Company (Boeing) and United Air   Lines, Inc. (Customer) relating to Model 787 aircraft (the Aircraft)

This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement. All terms used but not defined in this Letter Agreement have the same meaning as in the Purchase Agreement.

In support of Customer’s marketing and promotion programs associated with the launch of the Model 787 and introduction of the Aircraft into service, Boeing agrees *** Customer’s external expenses for such programs *** after delivery of the first Aircraft to Customer. Boeing will match Customer’s external expenses up to $*** for the first Aircraft and up to $*** for each additional Aircraft up to a maximum of *** total Aircraft. These programs may include *** promotion programs and advertising campaigns.

Boeing’s obligation to provide this *** support will commence at the time the purchase of the Aircraft becomes firm (not subject to cancellation by either party) and terminate *** after the delivery of the first Aircraft. Boeing will provide payment of matching funds upon receipt of copies of invoices detailing such expenses incurred within the period starting from *** through *** after the actual delivery of the first Aircraft to Customer. There will be no cash payments or other support in lieu thereof.

Following the execution of this Letter Agreement, a Boeing Airline Marketing Services representative will meet with Customer’s designated representative to discuss the extent, selection, scheduling, and *** process for the program.

Customer understands that certain commercial and financial information contained in this Letter Agreement is considered by Boeing as confidential. Customer agrees that it will treat this Letter Agreement and the information contained herein as confidential and will not, without the prior written consent of Boeing, disclose this Letter Agreement or any information contained herein to any other person or entity, except as may be required by applicable law or governmental regulation.

 

UAL-PA-03860-LA-1209416R1      Page 1
Promotional Support      SA-2

BOEING / UNITED AIRLINES, INC. PROPRIETARY


 

 

Very truly yours,
    THE BOEING COMPANY

 

By  

/s/ ***

Its   Attorney-In-Fact
ACCEPTED AND AGREED TO this
Date:   December 16, 2013
United Airlines, Inc.
By  

/s/ Gerald Laderman

Its  

Senior Vice President – Finance,

Procurement and Treasurer

 

UAL-PA-03860-LA-1209416R1      Page 2
Promotional Support      SA-2

BOEING / UNITED AIRLINES, INC. PROPRIETARY