Supplemental Agreement No. 104
 
to
 
Purchase Agreement No. 1810
 
between
 
THE BOEING COMPANY
 
and
 
SOUTHWEST AIRLINES CO.
 
Relating to Boeing Model 737-7H4 and 737-8H4 Aircraft

THIS SUPPLEMENTAL AGREEMENT No. 104 (SA-104) is entered into as of February 22,
2018, 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).
RECITALS:

WHEREAS, Buyer and Boeing entered into Purchase Agreement No. 1810 dated January
19, 1994, as amended and supplemented (Purchase Agreement), relating to the
purchase and sale of Boeing Model 737-7H4 aircraft (737-7H4 Aircraft) and
737-8H4 aircraft (737-8H4 Aircraft), collectively the “Aircraft”. This SA-104 is
an amendment to and is incorporated into the Purchase Agreement. Capitalized
terms used herein but not otherwise defined shall have the meaning set forth in
the Purchase Agreement; and

WHEREAS, Boeing and Buyer agree to amend the Purchase Agreement by revising the
delivery month of one (1) Model 737-8H4 Aircraft identified by MSN 64348
(Subject Aircraft) from July 2018 to August 2018.

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

1. TABLE OF CONTENTS

The Table of Contents is deleted in its entirety and replaced by a new Table of
Contents (attached), which lists the table revised by this SA-104 and is
identified by “SA-104”. Such revised Table of Contents, by this reference, is
incorporated in the Purchase Agreement.
    

***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-104-1

 
 
BOEING PROPRIETARY

 

--------------------------------------------------------------------------------

2. TABLES.

Table 1d, Aircraft Information Table - Block 800LUV Aircraft (non-ETOPS
Configuration), is deleted in its entirety and replaced by a new Table 1d
(attached). The new Table 1d reflects the revised delivery month for one (1)
Aircraft.

3. LETTER AGREEMENT.

Letter Agreement No. SWA-PA-1810-LA-1801210, entitled “Revision to Contract
Delivery Month of One (1) 737-8H4 (MSN64348),” is hereby incorporated into the
Purchase Agreement.

The Purchase 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/ Kyle Kersavage
By: /s/ Chris Monroe
 
 
Its: Attorney‑In‑Fact
Its: Chris Monroe
 
      SVP, Finance

P.A. No. 1810

SA-104-2

 
 
BOEING PROPRIETARY

 

--------------------------------------------------------------------------------

              TABLE OF CONTENTS
 
Page
SA
 
Number
Number

ARTICLES

 
 
 
 
 
 
 
1.
Subject Matter of Sale
1-1
SA-92
 
 
 
 
2.
Delivery, Title and Risk
 
 
 
of Loss
2-1
SA-28
 
 
 
 
3.
Price of Aircraft
3‑1
SA-92
 
 
 
 
4.
Taxes
4-1
 
 
 
 
 
5.
Payment
5‑1
 
 
 
 
 
6.
Excusable Delay
6‑1
 
 
 
 
 
7.
Changes to the Detail
 
 
 
Specification
7-1
SA-73
 
 
 
 
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
 
K/SWA
 
SA-104

--------------------------------------------------------------------------------

TABLE OF CONTENTS
 
SA
 
Number

TABLE

1b
Aircraft Information Table - Block 800LUV Aircraft
SA-82
 
1c
Aircraft Information Table - Block 800LUV Aircraft
SA-100
 
(non-ETOPS Configuration)
 
1d
Aircraft Information Table - Block 800LUV Aircraft
SA-104
 
(non-ETOPS Configuration)
 

EXHIBITS

A-6
Aircraft Configuration - Block 800LUV Aircraft
SA-75
 
A-7
Aircraft Configuration - Block 800LUV Aircraft
SA-84
 
(non-ETOPS Configuration)
 
B
***
SA-75
 
C
Customer Support Document
 
C-2
737-800 Customer Support Document
SA-75
 
D-2
Economic Price Adjustment
SA-75
 
ECI-MFG/CPI (July 2011 Base Price)
 
E
Buyer Furnished Equipment
SA-75
 
Provisions Document
 
Attachment A - 737-7H4 Aircraft (through 2012)
 
Attachment B - 737-8H4 Aircraft (2012-2018)
SA-101
 
F
Defined Terms Document
 
 
 
 
LETTER AGREEMENTS
 
 
 
 
 
 
1810-1R1
Waiver of Aircraft Demonstration Flight
SA-75

P.A. No. 1810

ii
 
K/SWA
 
SA-104

--------------------------------------------------------------------------------

TABLE OF CONTENTS
 
SA
 
Number

    
RESTRICTED LETTER AGREEMENTS

 
 
 
 
 
6‑1162‑RLL‑932R3
***
SA-75
 
6‑1162‑RLL‑934R5
Disclosure of Confidential Information
SA-75
 
6‑1162‑RLL‑941R3
Other Matters
SA-75
 
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
 
SWA-PA-1810-LA-1001315R4
***
SA-92
 
Attachment A
SA-100
 
SWA-PA-1810-LA-1003498R1
***
SA-75
 
SWA-PA-1810-LA-1003490R4
***
SA-92
 
SWA-PA-1810-LA-1003367R1
***
SA-75
 
SWA-PA-1810-LA-1105883
Aircraft Model Substitution
SA-75
 
SWA-PA-1810-LA-1105885R3
***
SA-90
 
SWA-PA-1810-LA-1105886R2
***
SA-92
 
 
 
SWA-PA-1810-LA-1105887
***
SA-75
 
 
 
SWA-PA-1810-LA-1105888R5
***
SA-92
 
SWA-PA-1810-LA-1105889
***
SA-75
 
SWA-PA-1810-LA-1303010R1
***
SA-92
 
SWA-PA-1810-LA-1504814
***
SA-92
 
SWA-PA-1810-LA-1801210
Revision to Contract delivery Month of
SA-104
 
One (1) 737-8H4 (MSN 64348)
 

P.A. No. 1810

iii
 
K/SWA
 
SA-104

--------------------------------------------------------------------------------

TABLE OF CONTENTS

ADDITIONAL LETTERS (FOR REFERENCE) - INACTIVE (as of SA-82)
6-1162-MSA-288
Business Offer - Enhanced Ground Proximity
 
Warning System (EGPWS) - Activiation - Peaks
 
and Obstacles Feature
 
(Not applicable to Block 700LUV & Block 800LUV Aircraft)
 
 
6-1162-JMG-501R2
Business Offer - ACARS package
 
(Not applicable to Block 700LUV & Block 800LUV Aircraft)

INACTIVE / DELETED TABLES, EXHIBITS, AND LETTER AGREEMENTS

TABLE

 
 
 
 
 
 
 
Table
Title
Last Updated under SA
Current Status
1
Aircraft Information Table
SA-75
Inactive
2
Option Aircraft Information Table
SA-74
Deleted under SA-75
1a
Aircraft Information Table - Block 700LUV Aircraft
SA-91
Deleted Under SA-92

EXHIBITS

 
 
 
 
 
 
 
Exhibits
Title
Last Updated
under SA
Current Status
A
Aircraft Configuration - 737-700
SA-36
Inactive
A-Winglet
Aircraft Configuration
SA-36
Inactive
A-1-Winglet
Aircraft Configuration
SA-36
Inactive
A-1A
Aircraft Configuration - 737-700 Block T-W-2c
SA-36
Inactive
A-2
Aircraft Configuration - 737-700 Block T-W-2 / T-W-2a
SA-47
Inactive
A-3
Aircraft Configuration - 737-700 Block T-W-2 / T-W-2a
SA-61
Inactive
A-4
Aircraft Configuration - 737-700 Block T-W-2b Aircraft
SA-66
Inactive
A-5
Aircraft Configuration - Block 700LUV Aircraft
SA-75
Deleted under SA-92
C.2
737-800 Customer Support Variables
SA-71
Deleted under SA-75
D
Price Adjustment Due to
Economic Fluctuations - Aircraft Price Adjustment
(July 1992 Base Price)
 
Inactive

P.A. No. 1810

iv
 
K/SWA
 
SA-104

--------------------------------------------------------------------------------

TABLE OF CONTENTS

Exhibits
Title
Last Updated under SA
Current Status
D-1
Price Adjustment Due to
Economic Fluctuations -
Aircraft Price Adjustment
(July 1999 Base Price)

SA-13
Inactive
E.2

737-800 Buyer Furnished Equipment Provisions Document

SA-73

Deleted under SA-75

RESTRICTED LETTER AGREEMENTS

 
 
 
 
 
 
Letter Agreement
Title
Last Updated under SA
Current Status
6‑1162‑RLL‑933R21
Option Aircraft
SA-60
Deleted under SA-75
6‑1162‑RLL‑935R1
Performance Guarantees
SA-1
Inactive
6‑1162‑RLL‑936R4
Certain Contractual Matters
SA-4
Inactive
6‑1162‑RLL‑937
Alternate Advance Payment Schedule
 
Inactive
6‑1162‑RLL‑938
***
 
Inactive
6‑1162‑RLL‑939R1
Certification Flight Test Aircraft
SA-1
Inactive
6‑1162‑RLL‑940R1
Training Matters
SA-1
Inactive
6‑1162‑RLL‑942
Open Configuration Matters
 
Inactive
6‑1162‑RLL‑943R1
Substitution Rights
SA-6
Deleted under SA 75
6‑1162‑RLL‑944
***
 
Inactive
6-1162-RLL-945
Comparison of 737-7H4 and 737-3H4 Block Fuel Burn
 
Inactive
6-1162-RLL-1855R3
Additional Contractual Matters
SA-4
Inactive
6-1162-RLL-1856
***
SA-1
Inactive
6-1162-RLL-1857
Service Ready Validation Program Field Test
SA-1
Inactive
6-1162-RLL-1858R1
Escalation Matters
SA-4
Inactive
6-1162-RLL-2036
Amortization of Costs for Customer Unique Changes
SA-1
Inactive
6-1162-RLL-2037
Reconciliation of the Aircraft Basic Price
SA-1
Inactive
6-1162-RLL-2073
Maintenance Training Matters
SA-1
Inactive
6-1162-KJJ-058R1
Additional Substitution Rights
SA-71
Deleted under SA-75

P.A. No. 1810

v
 
K/SWA
 
SA-104

--------------------------------------------------------------------------------

TABLE OF CONTENTS

 
 
 
 
Letter Agreement
Title
Last Updated under SA
Current Status
6-1162-KJJ-150
Flight Control Computer & Mode Control Panel Spares Matter
SA-14
Inactive
6-1162-MSA-185R3
Delivery Change Contractual Matters
SA-21
Inactive
6-1162-JMG-747R1
***
SA-36
Inactive
6-1162-CHL-217
Rescheduled Flight Test Aircraft
SA-32
Inactive
6-1162-NIW-606R1
***
SA-36
Inactive
6-1162-NIW-640
Early Delivery of Two April 2004 Aircraft
SA-35
Inactive
6-1162-NIW-889
Warranty - Exterior Color Schemes and Markings for YA143 and on
SA-39
Inactive
6-1162-NIW-1142
***
SA-43
Inactive
6-1162-NIW-1369
***
SA-46
Inactive
6-1162-NIW-1983
***
SA-62
Inactive
SWA-PA-1810-LA-1000419
***
SA-64
Inactive
6-1162-NIW-890R1
***
SA-75

SA-39
Inactive
6-1162-KJJ-054R2
Business Matters
SA-75
Inactive
6-1162-JMG-669R9
***
SA-75

SA-75
SA-54
Inactive
SWA-PA-1810-LA-02710R1
***
SA-72
Inactive
SWA-PA-01810/03729-LA-1301169
***
SA-2 to PA 3729
Inactive
SWA-PA-1810-LA-1105884R2

Option Aircraft
SA-92
Deleted under SA-103

P.A. No. 1810

vi
 
K/SWA
 
SA-104

--------------------------------------------------------------------------------

Table 1d to
Purchase Agreement No. PA-01810
Aircraft Delivery, Description, Price and Advance Payments
Block 800LUV Aircraft (non-ETOPS Configuration)

Airframe Model/MTOW:
737-800
174,200 pounds
 
Detail Specification:
D019A001SWA38 (1/9/2015)
Engine Model/Thrust:
CFM56-7B27
27,300 pounds
 
Airframe Price Base Year/Escalation Formula:
Jul-11
ECI-MFG/CPI
Airframe Price:
                         ***
 
Engine Price Base Year/Escalation Formula:
N/A
N/A
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:
***
 
 
 
 
Seller Purchased Equipment (SPE) Estimate:
***
 
 
 
 
Deposit per Exercised Option Aircraft (OPEX):

***
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 

Delivery

Date

Number of

Aircraft
Escalation

Factor

(Airframe)
Aircraft

Serial

Number

Escalation

Forecast
 
Escalation Estimate

Adv Payment Base

Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):

At Signing

***

24 Mos.

***

21/18/12/9/6 Mos.

***

Total

***
Dec-2016
2
***
63593, 63594
***
OPEX
***
***
***
***
***
May-2017
1
***
63592
***
OPEX
***
***
***
***
***
May-2017
1
***
63575
***
 
***
***
***
***
***
May-2017
1
***
63576
***
 
***
***
***
***
***
Jun-2017
2
***
63577, 63578
***
 
***
***
***
***
***
Jun-2017
3
***
63596, 63595,
63598
***
OPEX
***
***
***
***
***
Jun-2017
2
***
63571, 63586
***
 
***
***
***
***
***
Jun-2017
1
***
63599
***
OPEX
***
***
***
***
***
Jul-2017
1
***
63581
***
 
***
***
***
***
***
Aug-2017
1
***
63587
***
 
***
***
***
***
***
Aug-2017
2
***
63573, 63574
***
 
***
***
***
***
***
Sep-2017
1
***
63572
***
 
***
***
***
***
***

 
 
SA-104
SWA-PA-01810 82233 / 88233 93899
Boeing Proprietary
Page 1

--------------------------------------------------------------------------------

Table 1d to
Purchase Agreement No. PA-01810
Aircraft Delivery, Description, Price and Advance Payments
Block 800LUV Aircraft (non-ETOPS Configuration)

 
 
 
 
 
 
 
 
 
 
 

Delivery

Date

Number of

Aircraft
Escalation

Factor

(Airframe)
Aircraft

Serial

Number

Escalation

Forecast
 
Escalation Estimate

Adv Payment Base

Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):

At Signing

***

24 Mos.

***

21/18/12/9/6 Mos.

***

Total

***
Oct-2017
1
***
63579
***
 
***
***
***
***
***
Oct-2017
1
***
63597
***
OPEX
***
***
***
***
***
Nov-2017
1
***
63580
***
 
***
***
***
***
***
Dec-2017
2
***
63582, 63583
***
 
***
***
***
***
***
Dec-2017
4
***
63600, 63601, 63602, 36993
***
OPEX
***
***
***
***
***
Jan-2018
1
***
64115
***
OPEX
***
***
***
***
***
Jan-2018
2
***
63584, 63585
***
 
***
***
***
***
***
Feb-2018
2
***
64171, 64172
***
OPEX
***
***
***
***
***
Mar-2018
1
***
64174
***
OPEX
***
***
***
***
***
Apr-2018
1
***
64248
***
OPEX
***
***
***
***
***
May-2018
2
***
63588, 63589
***
 
***
***
***
***
***
May-2018
2
***
64251, 64250
***
OPEX
***
***
***
***
***
Jun-2018
2
***
63590, 63591
***
 
***
***
***
***
***
Jun-2018
2
***
64350, 64349
***
OPEX
***
***
***
***
***
Jul-2018
1
***
64347
***
OPEX
***
***
***
***
***
Aug-2018
1
***
64348
***
OPEX
***
***
***
***
***
Aug-2018
3
***
64799, 64800,
64801
***
OPEX
***
***
***
***
***

Total:
 
47

Notes:
1) ***
2) MSN 64348, above is revised to an August delivery. ***

 
 
SA-104
SWA-PA-01810 82233 / 88233 93899
Boeing Proprietary
Page 2

--------------------------------------------------------------------------------

boeinga07.jpg [boeinga07.jpg]
 
The Boeing Company
 
P. O. Box 3707
 
Seattle, WA 98124-2207
 
 

SWA-PA-1810-LA-1801210

Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235

Subject:
Revision to Contract Delivery Month of One (1) 737-8H4 (MSN 64348)

Reference:
Purchase Agreement No. PA-1810 (Purchase Agreement) between The Boeing Company
(Boeing) and Southwest Airlines Co. (Customer) relating to Model 737-7H4 and
737-8H4 aircraft (Aircraft)

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

1.
Re-contracted Firm Aircraft.

Customer and Boeing have agreed to revise the delivery date (month) of the
subject aircraft from July 2018 to August 2018 (Re-contracted Firm Aircraft). In
consideration of the Re-contracted Firm Aircraft, Customer will ***

2.
Confidential Treatment.

Customer understands and agrees that the information contained herein represents
confidential business information and has value precisely because it is not
available generally or to other parties. Customer agrees to limit the disclosure
of the contents of this Letter Agreement to (a) its directors and officers, (b)
employees of Customer with a need to know the contents for performing its
obligations (including, without limitation, those employees performing
accounting, finance, administration and other functions necessary to finance and
purchase, deliver or lease the Aircraft) and who understand they are not to
disclose its contents to any other person or entity (other than those to whom
disclosure is permitted by this Article) without the prior written consent of
Boeing and (c) any auditors and attorneys of Customer who have a need to know
such information and have signed a confidentiality agreement in the same form
and substance similar to this Article, or are otherwise bound by a
confidentiality obligation. Disclosure to other parties is not permitted without
Boeing’s consent except as may be required by applicable law or governmental
regulations. Customer shall be fully responsible to Boeing for compliance with
such obligations.

 
 
Page 1
 
BOEING PROPRIETARY

 

--------------------------------------------------------------------------------

boeinga07.jpg [boeinga07.jpg]
 
 
 
 
 
 
 
 

Very truly yours,

THE BOEING COMPANY
 
 
By
/s/ Kyle Kersavage

Its
Attorney‑In‑Fact
 
 
 
ACCEPTED AND AGREED TO this
 
 
Date:
February 22, 2018
 
SOUTHWEST AIRLINES CO.
 
 
By
/s/ Chris Monroe
 
 
Its
Chris Monroe
 
SVP, Finance

SWA-PA-1810-LA-1801210
 
Page 2
 
BOEING PROPRIETARY