Exhibit 10.4

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. 10

to

Purchase Agreement No. 2484

between

The Boeing Company

and

United Airlines, Inc.

Relating to Boeing Model 787 Aircraft

THIS SUPPLEMENTAL AGREEMENT entered into as of January 14, 2015, by and between
THE BOEING COMPANY (Boeing) and UNITED AIRLINES, INC. (a Delaware corporation)
(Customer);

WHEREAS, the parties hereto entered into Purchase Agreement No. 2484 dated
December 29, 2004 (Purchase Agreement), as amended and supplemented, relating to
Boeing model 787 aircraft (Aircraft);

WHEREAS, Boeing and Customer agree to incorporate the previously accepted
configuration for the 787-9 Aircraft;

WHEREAS, Boeing and Customer agree to reschedule *** model 787-*** Aircraft as
follows:

 

Serial Number

  

Original Delivery Month

  

New Delivery Month

***

   ***    ***

WHEREAS, Boeing and Customer agree to substitute *** Boeing model 777-300ER
aircraft (777 Aircraft) in lieu of the following *** 787-*** Aircraft (Cancelled
Aircraft) pursuant to Purchase Agreement No. 04308:

 

787-*** Manufacturer

Serial Number

  

787-*** Aircraft

Delivery Month

  

777 Manufacturer

Serial Number

  

777 Aircraft

Delivery Month

***

   ***    ***    ***

 

P.A. 2484

    SA-10, Page 1 BOEING/UNITED AIRLINES, INC. PROPRIETARY

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

WHEREAS, Boeing and Customer agree to reschedule *** Boeing model 787-9 Option
Aircraft as follows:

 

Original Option Delivery Month

  

New Option Delivery Month

***

   ***

WHEREAS, Boeing and Customer agree to *** the following *** model 787-9 Option
Aircraft (*** Options):

 

Original Option Delivery Month

  

Quantity

***

   ***

WHEREAS, Boeing and Customer agree to *** received by Boeing for the Cancelled
Aircraft and *** Options as follows:

- $ *** to MSN *** ;

- $ *** to MSN *** ;

- Any *** to the *** Aircraft.

WHEREAS, Boeing and Customer agree to incorporate into the Purchase Agreement
the terms and conditions contained in the attached letter agreements related to
Installation of Cabin Systems Equipment and Demonstration Flight Waiver.

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.

The Table of Contents is replaced in its entirety with the Table of Contents
that is attached hereto and references this Supplemental Agreement No. 10.

 

2. Exhibits.

Exhibit A2, “787-9 Aircraft Configuration” is replaced in its entirety with the
Exhibit A2, “787-9 Aircraft Configuration” that is attached hereto and
references this Supplemental Agreement No. 10.

 

3. Table.

Table 1 is replaced in its entirety with the Table 1 that is attached hereto and
references this Supplemental Agreement No. 10.

 

4. Letter Agreements.

 

  a. Attachment B to Letter Agreement 6-1162-MSA-547R5, “Option Aircraft” is
replaced in its entirety with the Attachment B to Letter Agreement
6-1162-MSA-547R5, “Option Aircraft” that is attached hereto and references this
Supplemental Agreement No. 10.

 

P.A. 2484

    SA 10, Page 2 BOEING / UNITED AIRLINES, INC. PROPRIETARY

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

  b. Letter Agreement 6-1162-MSA-552A1, “Special Matters — Amendment 1” that is
attached hereto and references this Supplemental Agreement No. 10 is hereby
inserted into the Purchase Agreement immediately after Letter Agreement
6-1162-MSA-552R7, “Special Matters”.

 

  c. Letter Agreement UAL-PA-2484-LA-1302613, Installation of Cabin Systems
Equipment, which is attached hereto and references this Supplemental Agreement
No. 4 is hereby inserted into the Purchase Agreement.

 

  d. Letter Agreement UAL-PA-2484-LA-1500016, Demonstration Flight Waiver, which
is attached hereto and references this Supplemental Agreement No. 4 is hereby
inserted into the Purchase Agreement.

 

5. Conditions Precedent: This Supplemental Agreement No. 10 will be effective
subject to satisfaction of all of the following conditions precedent
(collectively the Conditions Precedent):

 

  a. Execution of Supplemental Agreement No. 4 to Purchase Agreement No. 3860
between Boeing and Customer relating to Boeing model 787 aircraft;

 

  b. Execution of Letter Agreement 6-1162-RCN-1935 Amendment 1R2 between Boeing
and Customer relating to Boeing model 787 aircraft; and

 

  c. Execution of Purchase Agreement No. 04308 between Boeing and Customer
relating to Boeing model 777 aircraft;

Upon satisfaction of the Conditions Precedent, 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.

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

 

P.A. 2484

SA 10, Page 3 BOEING / UNITED AIRLINES, INC. PROPRIETARY

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

THE BOEING COMPANY

UNITED AIRLINES, INC.

/s/ Susan Englander

/s/ Gerald Laderman

Signature

Signature

Attorney-in-Fact

Senior Vice President – Finance, Procurement and Treasurer

Title

Title

 

P.A. 2484

SA 10, Page 4 BOEING / UNITED AIRLINES, INC. PROPRIETARY

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

TABLE OF CONTENTS

 

          SA
NUMBER

ARTICLES

     

Article 1.

   Quantity, Model and Description    SA-8

Article 2.

   Delivery Schedule    SA-8

Article 3.

   Price    SA-8

Article 4.

   Payment    SA-8

Article 5.

   Additional Terms    SA-8

TABLE

     

1.

   Aircraft Information Table    SA-10

EXHIBITS

     

A1.

   787-8 Aircraft Configuration    SA-6

A2.

   787-9 Aircraft Configuration    SA-10

B.

   Aircraft Delivery Requirements and Responsibilities    SA-1

SUPPLEMENTAL EXHIBITS

     

AE1.

   Escalation Adjustment/Airframe and Optional Features    SA-1

BFE1.

   BFE Variables    SA-8

CS1.

   Customer Support Document    SA-5

EE1.

   Engine Escalation/Engine Warranty ***    SA-2

SLP1.

   Service Life Policy Components    SA-1

LETTER AGREEMENTS

     

6-1162-MSA-546R4

   Open Configuration Matters    SA-6

6-1162-MSA-547R5

   Option Aircraft    SA-8          Attachment A (deleted)    SA-7   
      Attachment B    SA-8

6-1162-MSA-549

   Spare Parts Initial Provisioning    SA-1

6-1162-AJH-921

   787 e-Enabling    SA-6

 

P.A. 2484

  TABLE OF CONTENTS, Page 1 of 3   SA-10 BOEING / UNITED AIRLINES, INC.
PROPRIETARY

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

TABLE OF CONTENTS, CONTINUED

 

 

          SA
NUMBER

LETTER AGREEMENTS, continued

  

6-1162-AJH-922

   Special Matters Relating to COTS Software and End User License Agreements   
SA-6

6-1162-AJH-923

   Special Terms – Seats and In-flight Entertainment    SA-6

6-1162-RCN-1940

   Model 787 Post-Delivery Software & Data Loading    SA-7

CONFIDENTIAL LETTER AGREEMENTS

   6-1162-MSA-550    Spare Parts Commitments    SA-1 6-1162-MSA-551R2   
Performance Guarantees    SA-5 6-1162-MSA-552R7    Special Matters    SA-9
6-1162-MSA-552A1    Special Matters – Amendment 1    SA-10 6-1162-MSA-553R1   
Open Matters    SA-1 6-1162-MSA-554R4    Model Substitution    SA-8
6-1162-MSA-555    Promotional Support    SA-1 6-1162-RCN-1936    Other Special
Matters    SA-7 6-1162-RCN-1936A1    Other Special Matters - Amendment 1    SA-8
6-1162-RCN-1937    Performance Guarantees – Block B Aircraft    SA-7
6-1162-RCN-1938    *** – Block B Aircraft - TERMINATED    SA-8 6-1162-RCN-1939
   ***    SA-7 CAL-PA-2484-LA-1302248    Aircraft Acceleration from November
2014 to October 2014    SA-9 CAL-PA-2484-LA-1302613    Cabin Systems Equipment
   SA-10 CAL-PA-2484-LA-1500016    Demonstration Flight Waiver    SA-10

 

P.A. 2484

  TABLE OF CONTENTS, Page 2 of 3   SA-10 BOEING/UNITED AIRLINES, INC.
PROPRIETARY

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

TABLE OF CONTENTS, CONTINUED

 

SUPPLEMENTAL AGREEMENTS

  DATED AS OF:   

Supplemental Agreement No. 1

  June 30, 2005   

Supplemental Agreement No. 2

  January 20, 2006   

Supplemental Agreement No. 3

  May 3, 2006   

Supplemental Agreement No. 4

  July 14, 2006   

Supplemental Agreement No. 5

  March 12, 2007   

Supplemental Agreement No. 6

  November 15, 2007   

Supplemental Agreement No. 7

  November 7, 2012   

Supplemental Agreement No. 8

  June 17, 2013   

Supplemental Agreement No. 9

  June 6, 2014   

Supplemental Agreement No. 10

  January 14, 2015   

 

P.A. 2484

TABLE OF CONTENTS, Page 3 of 3 SA-10 BOEING / UNITED AIRLINES, INC. PROPRIETARY

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

Table 1

Purchase Agreement No. 2484

787-9 Aircraft Delivery, Description, Price and Advance Payments

(787-9/GE ***)

 

Airframe Model/MTOW:    787-9    *** pounds1       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 Estimate:

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

 

Scheduled
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):               
   ***    ***    ***    *** Block A Aircraft                         ***    ***
   ***    ***    ***    $***    $***    $***    $***    *** Block B Aircraft   
                     ***    ***    ***    ***    ***    $***    $***    $***   
$***    *** Total 787-9s    15                        

 

CAL-PA-2484, APR 71359

  Boeing / United Airlines, Inc. Proprietary   787-9 Table 1, Page 1, SA-10

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

787-9 AIRCRAFT CONFIGURATION

between

THE BOEING COMPANY

and

UNITED AIRLINES, INC.

Exhibit A2 to Purchase Agreement Number 2484

 

P.A. No. 2484

A2 SA 10 BOEING PROPRIETARY

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

Exhibit A2 to

Purchase Agreement No. 2484

Page 2

 

AIRCRAFT CONFIGURATION

relating to

BOEING MODEL 787-9 AIRCRAFT

The Detail Specification is Boeing document entitled Detail specification ***
revision ***, dated *** . Such Detail Specification will be comprised of those
provisions of 787 Configuration Specification *** , dated *** , as amended by
addendum *** Rev. ***, dated *** , which are applicable to model 787-9 aircraft
and as amended to incorporate the optional features listed below, including the
effects on Manufacturer’s Empty Weight (MEW) and Operating Empty Weight
(OEW). Such Options are set forth in Boeing Customer Specified Option Selection
Log and Option Data Pages, configuration file ( *** ), dated ***. As soon as
practicable, Boeing will make available to Customer the Detail Specification,
which will reflect such optional features. The Aircraft Basic Price reflects and
includes all effects of such optional features, except such Aircraft Basic Price
does not include the price effects of any Buyer Furnished Equipment.

There is no additional processing fee added to the master change price for
addition or deletion of catalog options within appropriate lead times.

 

P.A. No. 2484

A2-2 SA-10 BOEING PROPRIETARY

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

Exhibit A2 to

Purchase Agreement No. 2484

Page 3

 

CR

  

Title

  

Price Per

Aircraft

2006$

***    ***    *** ***    ***    *** ***    ***    *** ***    ***    *** ***   
***    *** ***    ***    *** ***    ***    *** ***    ***    *** ***    ***   
*** ***    ***    *** ***    ***    *** ***    ***    *** ***    ***    *** ***
   ***    *** ***    ***    *** ***    ***    *** ***    ***    *** ***    ***
   *** ***    ***    *** ***    ***    *** ***    ***    *** ***    ***    ***
***    ***    *** ***    ***    *** ***    ***    *** ***    ***    *** ***   
***    *** ***    ***    *** ***    ***    *** ***    ***    *** ***    ***   
*** ***    ***    *** ***    ***    *** ***    ***    *** ***    ***    *** ***
   ***    *** ***    ***    *** ***    ***    *** ***    ***    ***

 

P.A. No. 2484

  A2-3   SA-10 BOEING PROPRIETARY

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

Exhibit A2 to

Purchase Agreement No. 2484

Page 4

 

CR

  

Title

  

Price Per

Aircraft

2006$

***    ***    *** ***    ***    *** ***    ***    *** ***    ***    *** ***   
***    *** ***    ***    *** ***    ***    *** ***    ***    *** ***    ***   
*** ***    ***    *** ***    ***    *** ***    ***    *** ***    ***    *** ***
   ***    *** ***    ***    *** ***    ***    *** ***    ***    *** ***    ***
   *** ***    ***    *** ***    ***    *** ***    ***    *** ***    ***    ***
***    ***    *** ***    ***    *** ***    ***    *** ***    ***    *** ***   
***    *** ***    ***    *** ***    ***    *** ***    ***    *** ***    ***   
*** ***    ***    *** ***    ***    *** ***    ***    *** ***    ***    *** ***
   ***    *** ***    ***    *** ***    ***    *** ***    ***    *** ***    ***
   *** ***    ***    *** ***    ***    ***

 

P.A. No. 2484

  A2-4   SA-10 BOEING PROPRIETARY

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

Exhibit A2 to

Purchase Agreement No. 2484

Page 5

 

CR

  

Title

  

Price Per

Aircraft

2006$

***    ***    *** ***    ***    *** ***    ***    *** ***    ***    *** ***   
***    *** ***    ***    *** ***    ***    *** ***    ***    *** ***    ***   
*** ***    ***    *** ***    ***    *** ***    ***    *** ***    ***    *** ***
   ***    *** ***    ***    *** ***    ***    *** ***    ***    *** ***    ***
   *** ***    ***    *** ***    ***    *** ***    ***    *** ***    ***    ***
***    ***    ***      

 

TOTAL OPTIONS ***     $ ***      

 

 

P.A. No. 2484

A2-5 SA-10 BOEING PROPRIETARY

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

Attachment B to Option Aircraft Letter 6-1162-MSA-547R5

787-*** Option Aircraft Delivery, Description, Price and Advance Payments

(787-***/GE *** )

 

Airframe Model/MTOW:   787-***   *** 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):
*** Base Year Index (CPI): *** Non-Refundable Deposit/Aircraft at Def Agreemt:
$ ***

 

Delivery

Date

  

Number of

Aircraft

  

Escalation

Factor

(Airframe)

  

Escalation

Factor

(Engine)

        Escalation Estimate
Adv Payment Base
Price Per A/P   Advance Payment Per Aircraft (Amts. Due/Mos. Prior to
Delivery):                  ***   ***   ***   *** ***    ***    ***    ***      
$ ***   $ ***   $ ***   $ ***   $ *** Total:    ***                    

 

UAL-PA-02484 71828-1F.TXT

   Boeing / United Airlines, Inc. Proprietary   

SA-10

Page 1

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

LOGO [g891332g75x39.jpg]

 

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

 

 

6-1162-MSA-552A1

United Airlines, Inc.

233 South Wacker Drive

Chicago, IL 60606

 

Subject: Special Matters – Amendment 1

 

Reference: Purchase Agreement No. 2484 (the Purchase Agreement)

between The Boeing Company (Boeing) and United

Airlines, Inc. (Customer) relating to Model 787 aircraft (the Aircraft)

Ladies and Gentlemen:

This Letter Agreement (Amending Letter Agreement) amends and supplements the
Purchase Agreement and amends certain of the terms in Letter Agreement
6-1162-MSA-552R7 (the Letter Agreement). All terms used and not defined in this
Amending Letter Agreement have the same meaning as in the Purchase Agreement.

 

1. Amendments to Article 2 of the Letter Agreement.

The following new table is hereby inserted at the end of Section 4.2 of the
Letter Agreement:

 

Serial Number   Delivery Date   787-8 Advance Payment Base Price

***

*** ***

The following new Section 4.3 is hereby inserted immediately after Section 4.2
of the Letter Agreement:

4.3 2015 Payments for November 2015 787-9 Aircraft. In consideration of Customer
*** the delivery month of the 787-9 Aircraft bearing serial number *** to ***
(Aircraft *** ), Customer, at the time of delivery of Aircraft *** , shall be
entitled to *** with Boeing under the Purchase Agreement in an amount *** on
Aircraft *** , which will be *** to the delivery *** for Aircraft *** . Customer
shall *** Boeing all such *** pursuant to this Section 4.3 no earlier than ***
and no later than *** . Notwithstanding Paragraph 5.1 below, Boeing will *** as
a result of the *** for Aircraft *** .

 

2. Confidential Treatment.

 

P.A. No. 2484

SA 10 6-1162-MSA-552A1 Special Matters BOEING / UNITED AIRLINES, INC.
PROPRIETARY

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

LOGO [g891332g75x39.jpg]

 

Boeing and Customer understand that certain information contained in this
Amending Letter Agreement, including any attachments hereto, is considered by
both parties to be confidential. Boeing and Customer agree that each party will
treat this Amending Letter Agreement and the information contained herein as
confidential and will not, without the other party’s prior written consent,
disclose this Amending Letter Agreement or any information contained herein to
any other person or entity except as may be required by applicable law or
governmental regulations.

Very truly yours,

 

THE BOEING COMPANY

By

/s/ Susan Englander

Its Attorney-In-Fact ACCEPTED AND AGREED TO this Date: January 14, 2015 UNITED
AIRLINES, INC. By

/s/ Gerald Laderman

Its Senior Vice President – Finance, Procurement and Treasurer

 

P.A. No. 2484

SA 10 6-1162-MSA-552A1 Special Matters BOEING / UNITED AIRLINES, INC.
PROPRIETARY

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

LOGO [g891332g75x39.jpg]

 

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

 

 

CAL-PA-2484-LA-1302613

United Airlines, Inc.

233 South Wacker Drive

Chicago, IL 60606

 

Subject:

Installation of Cabin Systems Equipment

Reference:

Purchase Agreement No. PA-2484 (Purchase Agreement) between The Boeing Company
(Boeing) and United Airlines, Inc. (Customer) relating to Model 787 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.

Customer has requested that Boeing install in the Aircraft the in-flight
entertainment and communications systems described in Attachment A to this
Letter Agreement (collectively referred to as Cabin Systems Equipment or CSE).
CSE is BFE that Boeing purchases for Customer and that is identified as CSE in
the Detail Specification for the Aircraft.

The complexity of the CSE requires special attention and additional resources
during the development, integration, and certification of the CSE and
manufacture of the Aircraft to achieve proper operation of the CSE at the time
of delivery of the Aircraft. To assist Customer, Boeing will perform the
functions of project manager (Project Manager) as set forth in Attachment B.

 

1. Responsibilities.

1.1 Customer will:

1.1.1 provide Customer’s CSE system requirements to Boeing;

1.1.2 select the CSE suppliers (Supplier(s)) and system configuration options
from among those identified in Attachment A to this Letter Agreement; or options
otherwise available in the then current Standard Selections Catalog and formally
offered by Boeing (Options);

1.1.3 promptly after selecting the Options, participate with Boeing in meetings
with Suppliers to ensure that Supplier’s functional system specifications meet
Customer’s and Boeing’s respective requirements. Such functional system
specifications define functionality to which Boeing will test prior to delivery
but are not a guarantee of functionality at delivery;

 

CAL-PA-2484-LA-1302613

SA-10

Cabin Systems Equipment

LA Page 1 BOEING / UNITED AIRLINES, INC. PROPRIETARY

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

LOGO [g891332g75x39.jpg]

 

1.1.4 select Supplier part numbers;

1.1.5 negotiate and obtain agreements on product assurance, product support
following Aircraft delivery (including spares support), and any other special
business arrangements directly with Suppliers;

1.1.6 provide to Boeing pricing information for Customer selected CSE part
numbers by a mutually agreeable date;

1.1.7 negotiate and obtain agreements with any applicable service providers;

1.1.8 include in Customer’s contract with any seat supplier a condition causing
such seat supplier to enter a bonded stores agreement with Boeing. This bonded
stores agreement will set forth the terms concerning the use, handling, storage,
and risk of loss of CSE during the time such equipment is under the seat
supplier’s control;

1.1.9 cause Suppliers to:

1.1.9.1 assist the seat suppliers in the preparation of seat assembly functional
test plans;

1.1.9.2 coordinate integration testing, and provide seat assembly functional
test procedures for seat electronic parts to seat suppliers and Boeing, as
determined by Boeing; and

1.1.9.3 comply with Boeing’s 787 procurement processes (e.g. for transmission of
technical data, transmission of purchase orders, and processing of
non-conformances) (787 Procurement Processes). 787 Procurement Processes will be
provided to Customer and may be updated from time to time; and

1.1.9.4 comply with Boeing’s type design and type certification data development
and protection requirements where the Supplier has type design/certification
responsibility. The requirements will require Suppliers to (i) maintain type
design/certificate data for *** such type certificate for all type design and
(ii) entitle Boeing to access, review, and receive such type
design/certification data. These requirements will be provided to Customer and
included in any applicable contracts between Customer and Supplier.

 

CAL-PA-2484-LA-1302613

SA-10

Cabin Systems Equipment

LA Page 2 BOEING / UNITED AIRLINES, INC. PROPRIETARY

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

LOGO [g891332g75x39.jpg]

 

1.2 Boeing will:

1.2.1 perform the Project Manager functions stated in Attachment B;

1.2.2 provide Aircraft interface requirements to Suppliers;

1.2.3 assist Suppliers in the development of CSE system specifications and
approve such specifications;

1.2.4 release purchase orders, including on-dock dates to Supplier on behalf of
Customer, and manage such purchase orders;

1.2.5 coordinate the resolution of technical issues with Suppliers;

1.2.6 ensure that at the time of Aircraft delivery the CSE configuration meets
the requirements of the Option(s) contained in Attachment A to this Letter
Agreement as such Attachment A may be amended from time to time; and

1.2.7 obtain FAA certification of the Aircraft with the conforming CSE installed
therein.

 

2. Software.

CSE systems may contain software of the following two types:

2.1 Certification Software. The software required to functionally test, operate
and certify the CSE systems on the Aircraft is the Certification Software and is
part of the CSE.

2.2 Customer’s Software. The software which is defined by the Customer to
support customized features and appearance is Customer’s Software and is not
part of the CSE.

2.2.1 Customer is solely responsible for specifying Customer’s Software
functional and performance requirements and ensuring that Customer’s Software
meets such requirements. Customer and Customer’s Software supplier will have
total responsibility for the writing, certification, modification, revision, or
correction of any of Customer’s Software. Boeing will not perform the functions
and obligations described in paragraph 1.2 above, or the Project Manager’s
functions described in Attachment B, for Customer’s Software.

2.2.2 The omission of any Customer’s Software or the lack of any functionality
of Customer’s Software will not be a valid condition for Customer’s rejection of
the Aircraft at the time of Aircraft delivery.

 

CAL-PA-2484-LA-1302613

SA-10

Cabin Systems Equipment

LA Page 3 BOEING / UNITED AIRLINES, INC. PROPRIETARY

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

LOGO [g891332g75x39.jpg]

 

2.2.3 Boeing has no obligation to approve any documentation to support
Customer’s Software certification. Boeing will review and operate Customer’s
Software only if in Boeing’s reasonable opinion such review and operation is
necessary to certify the CSE on the Aircraft.

2.2.4 Boeing will not be responsible for obtaining FAA certification for
Customer’s Software.

 

3. Changes.

3.1 Any Customer request for changes to the CSE specification after Customer
acceptance of the Options will be made in writing directly to Boeing for
approval and for coordination by Boeing with the Supplier. Any such change to
the configuration of the Aircraft will be subject to *** through Boeing’s master
change or other process for amendment of the Purchase Agreement. Any Supplier
price increase or decrease resulting from such change will be negotiated between
Customer and Supplier.

3.2 Boeing and Customer recognize that the developmental nature of the CSE may
require changes to the CSE or the Aircraft in order to ensure (i) compatibility
of the CSE with the Aircraft and all other Aircraft systems, and (ii) FAA
certification of the Aircraft with the CSE installed therein. In such event
Boeing will notify Customer and recommend to Customer the most practical means
for incorporating any such change. If within fifteen (15) days after such
notification Customer and Boeing cannot mutually agree on the incorporation of
any such change or alternate course of action, the remedies available to Boeing
in Paragraph 6 will apply.

 

4. Supplier Defaults.

Boeing will notify Customer in a timely manner in the event of a default by a
Supplier under the Supplier’s purchase order with Boeing. Within fifteen (15)
days of Customer’s receipt of such notification, Boeing and Customer will agree
on an alternate Supplier or other course of action. If Boeing and Customer are
unable to agree on an alternate Supplier or course of action within such time,
the remedies available to Boeing in Paragraph 6 will apply.

 

5. Exhibits B and C to the AGTA.

CSE is deemed to be BFE for the purposes of Exhibit B, Customer Support
Document, and Exhibit C, the Product Assurance Document, of the AGTA.

 

6. Boeing’s Remedies.

If Customer does not perform its obligations as provided in this Letter
Agreement or if supplier fails (for any reason other than a default by Boeing
under the purchase

 

CAL-PA-2484-LA-1302613

SA-10

Cabin Systems Equipment

LA Page 4 BOEING / UNITED AIRLINES, INC. PROPRIETARY

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

LOGO [g891332g75x39.jpg]

 

order terms or this Letter Agreement) to deliver conforming CSE per the schedule
set forth in the purchase order, then, in addition to any other remedies which
Boeing may have by contract or under law, Boeing may:

6.1 revise the scheduled delivery month of the Aircraft to accommodate the delay
in delivery of the conforming CSE and base the calculation of the Escalation
Adjustment on such revised delivery month;

6.2 deliver the Aircraft without part or all of the CSE installed, or with part
or all of the CSE inoperative; and/or

6.3 increase the Aircraft Price by the amount of Boeing’s additional costs
attributable to such noncompliance, including but not limited to, *** associated
with *** by Boeing, any *** due to a Supplier’s failure to perform in accordance
with CSE program milestones as established by Boeing and agreed to by the
Supplier and particularly with respect to *** of such CSE.

 

7. Advance Payments.

7.1 Estimated Price for the CSE. An estimated price for the CSE purchased by
Boeing will be included in the Aircraft Advance Payment Base Price to establish
the advance payments for each Aircraft. The estimated price for the Boeing
purchased CSE installed on each Aircraft is identified in Table 1 of the
Purchase Agreement.

7.2 Aircraft Price. The Aircraft Price will include the actual CSE prices and
any associated transportation costs charged Boeing by Suppliers or otherwise
incurred by Boeing.

 

8. Customer’s Indemnification of Boeing.

Customer will indemnify and hold harmless Boeing from and against all claims and
liabilities, including costs and expenses (including attorneys’ fees) incident
thereto or incident to successfully establishing the right to indemnification,
for injury to or death of any person or persons, including employees of Customer
but not employees of Boeing, or for loss of or damage to any property, including
Aircraft, arising out of or in any way connected with any nonconformance or
defect in any CSE, and whether or not arising in tort or occasioned in whole or
in part by the negligence of Boeing. This indemnity will not apply with respect
to any nonconformance or defect caused solely by Boeing’s installation of the
CSE.

 

9. Title and Risk of Loss.

Title of CSE will remain with Boeing until the Aircraft title is transferred to
Customer. Risk of loss will remain with the entity that is in possession of the
CSE prior to Aircraft delivery.

 

CAL-PA-2484-LA-1302613

SA-10

Cabin Systems Equipment

LA Page 5 BOEING / UNITED AIRLINES, INC. PROPRIETARY

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

LOGO [g891332g75x39.jpg]

 

If the foregoing correctly sets forth your understanding of our agreement with
respect to the matters treated above, please indicate your acceptance and
approval below.

Very truly yours,

 

THE BOEING COMPANY By

/s/ Susan Englander

Its Attorney-In-Fact ACCEPTED AND AGREED TO this Date: January 14, 2015 UNITED
AIRLINES, INC. By

/s/ Gerald Laderman

Its Senior Vice President – Finance, Procurement and Treasurer

 

CAL-PA-2484-LA-1302613

SA-10

Cabin Systems Equipment

LA Page 6 BOEING / UNITED AIRLINES, INC. PROPRIETARY

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

LOGO [g891332g75x39.jpg]

 

Attachment A

Cabin Systems Equipment

The following optional features (Option(s)) describe(s) the items of equipment
that under the terms and conditions of this Letter Agreement are considered to
be CSE. Each such Option is fully described in the Option Document as described
in Exhibit A to the Purchase Agreement or the respective Option Data Pages, as
applicable. Final configuration will be based on Customer acceptance of any or
all Options listed below.

Option Request Number and Title

787-9 Aircraft Option Request Number(s) and Title(s)

 

  •   4435E084B67; IMPLEMENTATION – BROADBAND COMMUNICATION INSTALLATION – *** –
CSE (-9 ONLY)

 

  •   4421E084B69; POST IMPLEMENTATION – WIRELESS ACCESS POINT (WAP) – *** – CSE
– INSTALLATION – CAL 787-9

 

  •   4431E084B68 – POST IMPLEMENTATION – EXTERNAL COMMUNICATION SYSTEM –
INSTALLATION – *** – CSE

 

  •   4420E415A25 – TBS3 – POST IMPLEMENTATION – IN-FLIGHT ENTERTAINMENT SYSTEM
AS CABIN SYSTEMS EQUIPMENT – CSE

 

CAL-PA-2484-LA-1302613

Cabin Systems Equipment

SA-10

LA Page 7

BOEING / UNITED AIRLINES, INC. PROPRIETARY

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

LOGO [g891332g75x39.jpg]

 

Attachment B

Project Manager

 

1. Project Management.

Boeing will perform the following functions for the CSE. Boeing will have
authority to make day-to-day management decisions, and decisions on technical
details which in Boeing’s reasonable opinion do not affect form, fit, function,
cost, or aesthetics in any material respect. Boeing will be responsible for:

 

  (i) managing the development of all program schedules;

 

  (ii) evaluating Supplier’s program management and developmental plans to meet
Boeing’s production schedule;

 

  (iii) defining program metrics and status requirements;

 

  (iv) scheduling and conducting program design and schedule reviews with
Customer and Suppliers, as needed;

 

  (v) monitoring compliance with schedules;

 

  (vi) evaluating and approving any recovery plans or plan revisions which may
be required of either Suppliers or Customer;

 

  (vii) managing the joint development of the CSE system specification; and

 

  (viii) leading the development of a joint CSE project management plan (Project
Plan).

 

2. System Integration.

Boeing’s performance as Project Manager will include the functions of systems
integrator (Systems Integrator). As Systems Integrator Boeing will perform the
following functions:

 

  (i) as required, assist Suppliers in defining their system specifications for
the CSE, approve such specifications and develop an overall system functional
specification;

 

CAL-PA-2484-LA-1302613

Cabin Systems Equipment

SA-10

LA Page 8

BOEING / UNITED AIRLINES, INC. PROPRIETARY

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

LOGO [g891332g75x39.jpg]

 

  (ii) ensure the Project Plan includes sufficient Supplier testing, Supplier
sub-system testing, and an overall CSE system acceptance test; and

 

  (iii) organize and conduct technical coordination meetings with Customer and
Supplier(s) to review responsibilities, functionality, Aircraft installation
requirements and overall program schedule, direction and progress.

 

3. Seat Integration.

 

  (i) Boeing will coordinate the interface requirements between seat suppliers
and Suppliers. Interface requirements are defined in Boeing Document No’s.
D6-36230, “Passenger Seat Design and Installation”; D6-36238, “Passenger Seat
Structural Design and Interface Criteria”; D222W232, “Seat Wiring and Control
Requirements”; and D222W013-4, “Seat Assembly Functional Test Plan”, as amended
and superseded from time to time.

 

CAL-PA-2484-LA-1302613

SA-10

Cabin Systems Equipment

LA Page 9 BOEING / UNITED AIRLINES, INC. PROPRIETARY

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

LOGO [g891332g75x39.jpg]   

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

 

 

CAL-PA-2484-LA-1500016

United Airlines, Inc.

233 South Wacker Drive

Chicago, IL 60606

 

Subject:

   Demonstration Flight Waiver

Reference:

   Purchase Agreement No. PA-2484 (Purchase Agreement) between The Boeing
Company (Boeing) and United Airlines, Inc. (Customer) relating to Model 787
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.

Definition of Terms:

Correction Costs: Customer’s direct labor costs and the cost of any material
required to correct a Flight Discrepancy where direct labor costs are equal to
the Warranty Labor Rate in effect between the parties at the time such labor is
expended.

Flight Discrepancy: A failure or malfunction of an Aircraft, or the accessories,
equipment or parts installed on the Aircraft which results from a defect in the
Aircraft, Boeing Product, engine or Supplier Product or a nonconformance to the
Detail Specification for the Aircraft.

The AGTA provides that each Aircraft will be test flown prior to delivery for
the purpose of demonstrating the functioning of such Aircraft and its equipment
to Customer; however, Customer may elect to waive this test flight. For each
test flight waived, *** agrees to *** an amount of *** at delivery that,
including the *** , totals the following *** :

 

Aircraft Model

  

***

787

   ***

Further, *** agrees to *** for any *** as a result of the discovery of a ***
during the first flight of the Aircraft by *** following delivery to the extent
such *** are not covered under a warranty provided by *** or any of ***
suppliers.

 

CAL-PA-2484-LA-1500016

    SA-10

Demonstration Flight Waiver

    LA Page 1 BOEING / UNITED AIRLINES, INC. PROPRIETARY

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

LOGO [g891332g75x39.jpg]

 

Should a *** which requires the return of the Aircraft to *** facilities at ***
, so that *** may *** such *** , Boeing and Customer agree that title to and
risk of loss of such Aircraft will *** . In addition, it is agreed that *** will
have *** while it is on the ground at *** facilities in *** , as is chargeable
by law to a bailee for mutual benefit, but *** will not be liable for *** .

To be *** for *** , Customer will submit a written itemized statement describing
any *** and indicating the *** incurred by *** for each *** . This request must
be submitted to *** , within *** after the *** .

Very truly yours,

 

THE BOEING COMPANY By

/s/ Susan Englander

Its Attorney-In-Fact ACCEPTED AND AGREED TO this Date:  January 15, 2015 UNITED
AIRLINES, INC. By

/s/ Gerald Laderman

Its Senior Vice President – Finance, Procurement and Treasurer

 

CAL-PA-2484-LA-1500016

SA-10

Demonstration Flight Waiver

LA Page 2 BOEING / UNITED AIRLINES, INC. PROPRIETARY