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-10.1 2 d732259dex101.htm EX-10.1 EX-10.1

Exhibit 10.1

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 General Electric;

 

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/ Ken Takahashi      /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

 

ARTICLES

   SA
NUMBER
 
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

 

LETTER AGREEMENTS

       SA Number  
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

 

CONFIDENTIAL LETTER AGREEMENTS, continued

   SA
NUMBER
 

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   

Engine Model/Thrust:

  GENX-1B***      *** pounds   

Airframe Price:

     $ ***   

Optional Features:

     $ ***   
    

 

 

 

Sub-Total of Airframe and Features:

     $ ***   

Engine Price (Per Aircraft):

     $ ***   

Aircraft Basic Price (Excluding BFE/SPE):

     $ ***   

Buyer Furnished Equipment (BFE) Estimate:

     $ ***   

Seller Purchased Equipment (SPE) Estimate:

     $ ***   

In Flight Entertainment (IFE) Fixed$:

     $ ***   
Detail Specification:    ***         
Airframe Price Base Year/Escalation Formula:       ***       ***
Engine Price Base Year/Escalation Formula:       ***       ***
Airframe Escalation Data:            
Base Year Index (ECI):          ***   
Base Year Index (CPI):          ***   
Engine Escalation Data:            
Base Year Index (ECI):          ***   
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 66731-1F.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   

Engine Model/Thrust:

    GENX-1B***                *** pounds   

Airframe Price:

    $ ***   

Optional Features:

    $ ***   
   

 

 

 

Sub-Total of Airframe and Features:

    $ ***   

Engine Price (Per Aircraft):

    $ ***   

Aircraft Basic Price (Excluding BFE/SPE):

    $ ***   
   

 

 

 

Buyer Furnished Equipment (BFE) Estimate:

    $ ***   

Seller Purchased Equipment (SPE) Estimate:

    $ ***   

In Flight Entertainment (IFE) Fixed$:

    $ ***   
Detail Specification:    ***         
Airframe Price Base Year/Escalation Formula:       ***       ***
Engine Price Base Year/Escalation Formula:       ***       ***
Airframe Escalation Data:            
Base Year Index (ECI):          ***   
Base Year Index (CPI):          ***   
Engine Escalation Data:            
Base Year Index (ECI):          ***   
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 66731-1F.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   

Engine Model/Thrust:

     GENX-1B***¹                 *** pounds   

Airframe Price:

      $ ***   

Optional Features:

      $ ***   
     

 

 

 

Sub-Total of Airframe and Features:

      $ ***   

Engine Price (Per Aircraft):

      $ ***   
     

 

 

 

Aircraft Basic Price (Excluding BFE/SPE):

      $ ***   
     

 

 

 

Buyer Furnished Equipment (BFE) Estimate:

      $ ***   

Seller Purchased Equipment (SPE) Estimate:

      $ ***   

In Flight Entertainment (IFE) Estimate:

      $ ***   
Detail Specification:    ***         
Airframe Price Base Year/Escalation Formula:       ***       ***
Engine Price Base Year/Escalation Formula:       ***       ***
Airframe Escalation Data:            
Base Year Index (ECI):          ***   
Base Year Index (CPI):          ***   
Engine Escalation Data:            
Base Year Index (ECI):          ***   
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 66732-1F.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   

Engine Model/Thrust:

  GENX-1B***¹             *** pounds   

Airframe Price:

    $ ***   

Optional Features:

    $ ***   
   

 

 

 

Sub-Total of Airframe and Features:

    $ ***   

Engine Price (Per Aircraft) :

    $ ***   
   

 

 

 

Aircraft Basic Price (Excluding BFE/SPE):

    $ ***   
   

 

 

 

Buyer Furnished Equipment (BFE) Estimate:

    $ ***   

In-Flight Entertainment (IFE) Estimate:

    $ ***   

Refundable Deposit/Aircraft at Proposal Accept:

    $ ***   

 

Detail Specification:

     ***            

Airframe Price Base Year/Escalation Formula:

        ***            ***   

Engine Price Base Year/Escalation Formula:

        ***            ***   

Airframe Escalation Data:

           

Base Year Index (ECI):

           ***      

Base Year Index (CPI):

           ***      

Engine Escalation Data:

           

Base Year Index (ECI):

           ***      

Base Year Index (CPI):

           ***      
 

 

           

Escalation

    

Escalation

            Escalation Estimate      Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):  

Delivery

Date

   Number of
Aircraft
     Factor
(Airframe)
     Factor
(Engine)
     Serial
Number
     Adv Payment Base
Price Per A/P
     ***
***
     ***
***
     ***
***
     ***
***
 

***

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

***

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

***

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

***

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

***

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

***

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

***

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

***

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

***

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

***

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

***

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

***

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

***

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

 

APR 67002-1F.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

Date

   Number of
Aircraft
     Factor
(Airframe)
     Factor
(Engine)
     Serial
Number
     Adv Payment Base
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 67002-1F.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/ Ken Takahashi

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