SUPPLEMENTAL AGREEMENT NO. 2
 
to
 
Purchase Agreement No. 3729
 
between
 
THE BOEING COMPANY
 
and
 
SOUTHWEST AIRLINES CO.
 
Relating to Boeing Model 737-8 and 737-7 Aircraft

THIS SUPPLEMENTAL AGREEMENT, entered into as of May 13 , 2013, is made between
THE BOEING COMPANY, a Delaware corporation (Boeing), and SOUTHWEST AIRLINES CO.
a Texas corporation (Customer);

Customer and Boeing entered into Purchase Agreement Number PA-03729 dated
December 13, 2011 as amended and supplemented (Purchase Agreement), relating to
the purchase and sale of Boeing Model 737-8 aircraft; and this Supplemental
Agreement No. 2 is an amendment to and is incorporated into the Purchase
Agreement:

WHEREAS, Boeing and Customer agree to amend the Purchase Agreement to document
Customer’s substitution of thirty (30) firm Model 737-700 aircraft (Substitution
Aircraft) to firm Model 737-8 aircraft (New Firm -8 Aircraft), exercised
pursuant to the terms of SA-83 to Purchase Agreement No. 1810 between Customer
and Boeing (SA-83);
WHEREAS, Boeing and Customer agree to amend the Purchase Agreement to document
Customer’s substitution of forty-one (41) Model 737-700 option aircraft to Model
737-8 option aircraft (New Option -8 Aircraft), exercised pursuant to the terms
of SA-83;
WHEREAS, Boeing and Customer agree that Customer will be the launch customer for
the Model 737-7 aircraft and, accordingly, Customer elects to exercise its right
to substitute thirty (30) firm Model 737-8 aircraft to Model 737-7 aircraft (New
Firm -7 Aircraft) in accordance with Letter Agreement SWA-PA-03729-LA-1106471,
“Substitute Aircraft”;
WHEREAS, Boeing and Customer agree to amend the Purchase Agreement to revise the
scheduled delivery stream and identify nominal delivery months for the aircraft;
WHEREAS, Boeing and Customer agree to amend the Purchase Agreement to make
certain of its terms applicable to 737-7 Aircraft;
***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.

SWA-PA-03729
1

SA-2
BOEING PROPRIETARY

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

NOW, THEREFORE, the parties agree that the Purchase Agreement is amended as set
forth below and otherwise agree as follows:
1.The cover page and Table of Contents of the Purchase Agreement are deleted in
their entirety and a new cover page and Table of Contents are attached hereto
and incorporated into the Purchase Agreement by this reference, which reflect
the addition of the Model 737-7 aircraft.
2.Article 1 of the Purchase Agreement is deleted in its entirety and a new
Article 1 is attached hereto and incorporated into the Purchase Agreement by
this reference, which reflects (i) the addition of Model 737-7 aircraft, (ii)
reference to new Exhibits A1 and A2 and (iii) reference to new Tables 1A and 1B.
3.Article 4 of the Purchase Agreement is deleted in its entirety and a new
Article 4 is attached hereto and incorporated into the Purchase Agreement by
this reference, which reflects the addition of Model 737-7 aircraft.
4.Table 1, “Aircraft Delivery, Description, Price and Advance Payments”, to the
Purchase Agreement is deleted in its entirety.
5.Table 1A, “737-8 Aircraft Delivery, Description, Price and Advance Payments”,
to the Purchase Agreement is hereby added and is incorporated into the Purchase
Agreement by this reference. Table 1A (i) adds the New Firm -8 Aircraft, (ii)
accelerates the scheduled delivery of certain 2018 and 2019 737-8 Aircraft,
(iii) identifies the Nominal Delivery Month for each 737-8 Aircraft and (iv)
designates blocks of 737-8 Aircraft to differentiate applicable business terms.
6.Table 1B, “737-7 Aircraft Delivery, Description, Price and Advance Payments”,
to the Purchase Agreement is hereby added and, by this reference, is
incorporated in the Purchase Agreement. Table 1B contains description, price,
advance payment and Nominal Delivery Month information for the 737-7 Aircraft.
7.Exhibit A, “Aircraft Configuration”, to the Purchase Agreement is deleted in
its entirety.
8.New Exhibit A1, “737-8 Aircraft Configuration”, is attached hereto and
incorporated into the Purchase Agreement by this reference, containing the
aircraft configuration for 737-8 Aircraft.
9.New Exhibit A2, “737-7 Aircraft Configuration”, is attached hereto and
incorporated into the Purchase Agreement by this reference, containing the
aircraft configuration for 737-7 Aircraft.
10. New Supplemental Exhibit CS1-7MAX, “Customer Support Variables”, is attached
hereto and incorporated into the Purchase Agreement by this reference,
containing the customer support variables applicable to the 737-7 Aircraft.
11.Letter Agreement SWA-PA-03729-LA-1106463, “Open Matters”, is deleted in its
entirety and replaced with the attached revised Letter Agreement
SWA-PA-03729-LA-1106463R1, “Open Matters”, which reflects the addition of the
Model 737-7 Aircraft.
12.Letter Agreement SWA-PA-03729-LA-1106469, ***, is deleted in its entirety and
replaced with the attached revised Letter Agreement SWA-PA-03729-LA-1106469R1,
***, which reflects the addition of the Model 737-7 Aircraft.

SWA-PA-03729
2

SA-2
BOEING PROPRIETARY

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

13.Letter Agreement SWA-PA-03729-LA-1106470, ***, is deleted in its entirety and
replaced with the attached revised Letter Agreement SWA-PA-03729-LA-1106470R1,
***, which reflects the addition of the Model 737-7 aircraft.
14.Letter Agreement SWA-PA-03729-LA-1106471, “Substitute Aircraft”, is deleted
in its entirety and replaced with the attached revised Letter Agreement
SWA-PA-03729-LA-1106471R1, “Substitute Aircraft”, which removes language made
superfluous by this Supplemental Agreement.
15.Letter Agreement SWA-PA-03729-LA-1106472, ***, is deleted in its entirety and
replaced with the attached revised Letter Agreement SWA-PA-03729-LA-1106472R1,
***, which revises the quantity of Eligible Aircraft and updates document
references consistent with this Supplemental Agreement.
16.Attachment 1 to Letter Agreement SWA-PA-03729-LA-1106474, “Option Aircraft”,
is deleted in its entirety and replaced with a new Attachment 1 (identified by
“SA-2”) attached hereto and incorporated into the Purchase Agreement by this
reference. This new Attachment 1 reflects the addition of the New Option -8
Aircraft and designates a block of Option Aircraft to differentiate applicable
business terms.
17.Letter Agreement SWA-PA-03729-LA-1106479, ***, is deleted in its entirety and
replaced with the attached revised and re-titled Letter Agreement
SWA-PA-03729-LA-1106479R1, ***, which reflects the addition of the Model 737-7
Aircraft.
18.Letter Agreement SWA-PA-03729-LA-1106480, ***, is deleted in its entirety and
replaced with the attached revised Letter Agreement SWA-PA-03729-LA-1106480R1,
***, which reflects the addition of the Model 737-7 Aircraft.
19.Letter Agreement SWA-PA-03729-LA-1106481R1, *** is deleted in its entirety
and replaced with the attached revised Letter Agreement
SWA-PA-03729-LA-1106481R2, ***, which reflects the addition of the Model 737-7
aircraft.
20.Attachment A to Letter Agreement SWA-PA-03729-LA-1106484, ***, is deleted in
its entirety and replaced with a new Attachment A, which reflects the revised
aircraft delivery stream extending through 2024.
21.Attachment B to Letter Agreement SWA-PA-03729-LA-1106484, ***, is deleted in
its entirety and replaced with a new Attachment B, which reflects the revised
aircraft delivery stream extending through 2024.
22.
Page 1 or Page 2, as applicable, of each of the following Exhibits, Supplemental
Exhibits and Letter Agreements are hereby deleted and replaced with the attached
pages, which include revisions to add reference to 737-7 Aircraft:

EXHIBIT
B
Aircraft Delivery Requirements and Responsibilities
SUPPLEMENTAL EXHIBITS
 
AE1
Escalation Adjustment/Airframe and Optional Features
BFE1
BFE Variables

SWA-PA-03729
3

SA-2
BOEING PROPRIETARY

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

EE1
Engine Escalation/Engine Warranty and Patent Indemnity
SLP1
Service Life Policy Components
LETTER AGREEMENTS
 
 
SWA-PA-03729-LA-1106464
***
 
SWA-PA-03729-LA-1106465
***
 
SWA-PA-03729-LA-1106468
***
 
SWA-PA-03729-LA-1106476
***
 
SWA-PA-03729-LA-1106477
***
 
SWA-PA-03729-LA-1106482
***
 
SWA-PA-03729-LA-1106483
***
 
SWA-PA-03729-LA-1106484
***
 
SWA-PA-03729-LA-1106485
***
 
 
 
 

23.New Letter Agreement SWA-PA-03729-LA-1300943, ***, is attached hereto and, by
this reference, incorporated into the Purchase Agreement, ***
24.New Letter Agreement SWA-PA-03729-LA-1301168, ***, is attached hereto and, by
this reference, incorporated into the Purchase Agreement, ***.
25.New Letter Agreement SWA-PA-01810/03729-LA-1301169, ***, is attached hereto
and, by this reference, incorporated into the Purchase Agreement, ***.
26.New Letter Agreement SWA-PA-03729-LA-1301170, ***, is attached hereto and, by
this reference, incorporated into the Purchase Agreement, ***
27.
If Customer owes Boeing any additional Advance Payment amounts as a result of
the execution of this Supplemental Agreement, Customer will pay such amounts to
Boeing.   If as a result of the execution of this Supplemental Agreement, there
is any excess in Advance Payments made by Customer to Boeing, Boeing will retain
such excess amounts until the next Advance Payment is due, at which time
Customer may reduce the amount of such Advance Payment by the amount of such
excess.  A reconciliation regarding changes in Advance Payments arising from
this Supplemental Agreement will be provided separately to Customer by Boeing.

28.The Purchase Agreement is amended as set forth above, and all other terms and
conditions of the Purchase Agreement remain unchanged and are in full force and
effect.
29.This Supplemental Agreement is contingent upon the prior execution of
Supplemental Agreement No. 1 to the Purchase Agreement and must be executed by
Boeing and Customer concurrently with Supplemental Agreement No. 83 to Purchase
Agreement No. 1810 on or before May 17, 2013.

SWA-PA-03729
4

SA-2
BOEING PROPRIETARY

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

AGREED AND ACCEPTED this
 
 
 
 
 
May 13, 2013
 
 
Date
 
 
 
 
 
THE BOEING COMPANY
 
SOUTHWEST AIRLINES CO.

 
 
/s/ Jeff Solomon
 
/s/ Michael Van de Ven
Signature
 
Signature
 
 
 
Jeffery J. Solomon
 
Michael Van de Ven
Printed name
 
Printed name
 
 
 
Attorney-in-Fact
 
Executive Vice President
Title
 
Title

SWA-PA-03729
5

SA-2
BOEING PROPRIETARY

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

PURCHASE AGREEMENT NUMBER PA-03729
between
THE BOEING COMPANY
and
Southwest Airlines Co.
Relating to Boeing Model 737-8 and 737-7 Aircraft

SWA-PA-03729
SA-2
 
Page
1

BOEING PROPRIETARY

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

TABLE OF CONTENTS

ARTICLES
TITLES
Article 1
Quantity, Model and Description
SA-2
Article 2
Delivery Schedule
Article 3
Price
Article 4
Payment
SA-2
Article 5
Additional Terms
TABLE
TITLE
1A
737-8 Aircraft Information Table
SA-2
1B
737-7 Aircraft Information Table
SA-2
EXHIBIT
A1
737-8 Aircraft Configuration
SA-2
A2
737-7 Aircraft Configuration
SA-2
B*
Aircraft Delivery Requirements and Responsibilities
SUPPLEMENTAL EXHIBITS
TITLES
AE1*
Escalation Adjustment/Airframe and Optional Features
BFE1*
BFE Variables
CS1
Customer Support Variables
CS1-7MAX
Customer Support Variables
SA-2
EE1*
Engine Escalation/Engine Warranty and Patent Indemnity
SLP1*
Service Life Policy Components
LETTER AGREEMENTS
TITLES
SWA-PA-03729-LA-1106463R1
Open Matters
SA-2

SWA-PA-03729
SA-2
 
Page
2

BOEING PROPRIETARY

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

LETTER AGREEMENTS
TITLES
SWA-PA-03729-LA-1106464*
***
SWA-PA-03729-LA-1106465*
***
SWA-PA-03729-LA-1106466
***
SWA-PA-03729-LA-1106467
***
SWA-PA-03729-LA-1106468*
***
SWA-PA-03729-LA-1106469R1
***
SA-2
SWA-PA-03729-LA-1106470R1
***
SA-2
SWA-PA-03729-LA-1106471R1
Substitute Aircraft
SA-2
SWA-PA-03729-LA-1106472R1
***
SA-2
SWA-PA-03729-LA-1106473
***
SWA-PA-03729-LA-1106474
Option Aircraft
 
 
Attachment 1
SA-2
SWA-PA-03729-LA-1106475
***
SWA-PA-03729-LA-1106476*
***
SWA-PA-03729-LA-1106477*
***
SWA-PA-03729-LA-1106478
***
SWA-PA-03729-LA-1106479R1
***
SA-2
SWA-PA-03729-LA-1106480R1
***
SA-2
SWA-PA-03729-LA-1106481R2
***
SA-2
SWA-PA-03729-LA-1106482*
***
SWA-PA-03729-LA-1106483*
***
SWA-PA-03729-LA-1106484*
***
Attachment A
SA-2
Attachment B
SA-2
SWA-PA-03729-LA-1106485*
***

SWA-PA-03729
SA-2
 
Page
3

BOEING PROPRIETARY

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

LETTER AGREEMENTS
TITLES
SWA-PA-03729-LA-1209080
*** SA-1
SWA-PA-03729-LA-1210419
***
                                                                                                                                                                    
SA-1
SWA-PA-03729-LA-1300943
*** SA-2
SWA-PA-03729-LA-1301168
*** SA-2
SWA-PA-01810/03729-LA-1301169
*** SA-2
SWA-PA-03729-LA-1301170
*** SA-2
 
 
 
 

* Denotes revision to Page 1 or Page 2 only to reference 737-7 (SA-2)

SWA-PA-03729
SA-2
 
Page
4

BOEING PROPRIETARY

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

Purchase Agreement No. PA-03729
between
The Boeing Company
and
Southwest Airlines Co.

This Purchase Agreement No. PA-03729 between The Boeing Company, a Delaware
corporation, (Boeing) and Southwest Airlines Co., a Texas corporation,
(Customer) relating to the purchase and sale of Model 737-8 and 737-7 aircraft
together with all tables, exhibits, supplemental exhibits, letter agreements and
other attachments thereto, if any, (Purchase Agreement) incorporates the terms
and conditions (except as specifically set forth below) of the Aircraft General
Terms Agreement dated as of December 13, 2011 between the parties, identified as
SWA-AGTA (AGTA).
1.Quantity, Model and Description.
The aircraft to be delivered to Customer will be designated as Model 737-8 and
737-7 aircraft (Aircraft). Boeing will manufacture and sell to Customer Aircraft
conforming to the configurations described in Exhibits A1 and A2 (collectively
referred to as Exhibit A) in the quantities listed in Tables 1A and 1B
respectively (collectively referred to as Table 1) to the Purchase Agreement.
2.Delivery Schedule.
The scheduled months of delivery of the Aircraft are listed in the attached
Table 1. Exhibit B describes certain responsibilities for both Customer and
Boeing in order to accomplish the delivery of the Aircraft.
3.Price.
3.1    Aircraft Basic Price. The Aircraft Basic Price is listed in Table 1 and
is subject to escalation in accordance with the terms of this Purchase
Agreement.
3.2    Advance Payment Base Prices. The Advance Payment Base Prices listed in
Table 1 were calculated utilizing the latest escalation factors available to
Boeing on the date of this Purchase Agreement projected to the scheduled
delivery month of each Aircraft.
4.Payment.
4.1    Boeing acknowledges receipt of a deposit in the amount shown in Table 1
for each Aircraft (Deposit).
4.2     The standard advance payment schedule for the Aircraft requires Customer
*** on the effective date of the Purchase Agreement for the

SWA-PA-03729
SA-2
 
Page
5

BOEING PROPRIETARY

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

Aircraft. Additional advance payments for each Aircraft are due as specified in
and on the first business day of the months listed in the attached Table 1.
4.3    For any Aircraft whose scheduled month of delivery is less than
twenty‑four (24) months from the date of this Purchase Agreement, the total
amount of advance payments due for payment upon signing of this Purchase
Agreement will include all advance payments which are past due in accordance
with the standard advance payment schedule set forth in paragraph 4.2 above.
4.4    Customer will pay the balance of the Aircraft Price of each Aircraft at
delivery.
5.Additional Terms.
5.1    Aircraft Information Table. Table 1 consolidates information contained in
Articles 1, 2, 3 and 4 with respect to (i) quantity of Aircraft, (ii) applicable
Detail Specification, (iii) month and year of scheduled deliveries,
(iv) Aircraft Basic Price, (v) applicable escalation factors and (vi) Advance
Payment Base Prices and advance payments and their schedules.
5.2    Escalation Adjustment/Airframe and Optional Features. Supplemental
Exhibit AE1 contains the applicable airframe and optional features escalation
formula.
5.3    Buyer Furnished Equipment Variables. Supplemental Exhibit BFE1 contains
supplier selection dates, on dock dates and other variables applicable to the
Aircraft.
5.4    Customer Support Variables. Information, training, services and other
things furnished by Boeing in support of introduction of the Aircraft into
Customer’s fleet are described in Supplemental Exhibit CS1.
5.5    Engine Escalation Variables. Supplemental Exhibit EE1 contains the
applicable engine escalation formula, the engine warranty and the engine patent
indemnity for the Aircraft describes the applicable engine escalation formula
and contains the engine warranty and the engine patent indemnity for the
Aircraft.
5.6    Service Life Policy Component Variables. Supplemental Exhibit SLP1 lists
the SLP Components covered by the Service Life Policy for the Aircraft.
5.7    Public Announcement. Each of Customer and Boeing reserves the right to
make a public announcement regarding Customer’s purchase of the Aircraft upon
approval from the authorized representative of the other party hereto.
Negotiated Agreement; Entire Agreement. This Purchase Agreement, including the
provisions of Article 8.2 of the AGTA relating to insurance, and Article 11 of
Part 2 of Exhibit C of the AGTA relating to DISCLAIMER AND RELEASE and EXCLUSION
OF CONSEQUENTIAL AND OTHER DAMAGES, has been the subject of discussion and
negotiation and is understood by the parties; the Aircraft Price and other
agreements of the parties stated in this Purchase Agreement were arrived at in
consideration of such provisions. This Purchase Agreement, including the AGTA,

SWA-PA-03729
SA-2
 
Page
6

BOEING PROPRIETARY

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

Table 1A To
Purchase Agreement No. PA-03729
Aircraft Delivery, Description, Price and Advance Payments
737-8 Aircraft

Airframe Model/MTOW:
737-8
175900 pounds
 
 
Detail Specification:
D019A001-TBD (10/27/2011)
Engine Model/Thrust:
CFMLEAP-1B26
tbd
 
 
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)/In-Flight
***
 
 
 
 
 
 
 
Entertainment (IFE)// Estimate:
 
 
 
 
 
 
 
 

 
Delivery
Date*
 
Number of
Aircraft
 
Escalation
Factor
(Airframe)
Manufacturer
Serial
Number
 
Aircraft
Block
 
 
Notes
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

***
Jul-2017
1
***
36929
A
Note 1
***
***
***
***
***
Jul-2017
2
***
 
C
Note 1
***
***
***
***
***
Aug-2017
3
***
36979, 36930, 36984
A
Note 1
***
***
***
***
***
Aug-2017
3
***
 
C
Note 1
***
***
***
***
***
Sep-2017
1
***
36934
A
Note 1
***
***
***
***
***
Oct-2017
1
***
36988
A
 
***
***
***
***
***
Oct-2017
1
***
 
C
 
***
***
***
***
***
Nov-2017
1
***
36989
A
 
***
***
***
***
***
Nov-2017
1
***
 
C
 
***
***
***
***
***
Jan-2018
1
***
42544
A
 
***
***
***
***
***
Jan-2018
1
***
 
C
 
***
***
***
***
***
Mar-2018
1
***
 
C
 
***
***
***
***
***
Jun-2018
1
***
42546
A
 
***
***
***
***
***
Jul-2018
1
***
42547
A
 
***
***
***
***
***
Jul-2018
1
***
 
C
 
***
***
***
***
***
Aug-2018
1
***
42548
A
 
***
***
***
***
***
Sep-2018
1
***
 
 
 
***
***
***
***
***

 
 
SA-2
SWA-PA-03729 58680-1F.TXT
BOEING PROPRIETARY
Page
1

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

Table 1A To
Purchase Agreement No. PA-03729
Aircraft Delivery, Description, Price and Advance Payments
737-8 Aircraft

 
Delivery
Date*
 
Number of
Aircraft
Escalation
Factor
(Airframe)
Manufacturer
Serial
Number
 
Aircraft
Block
 
 
Notes
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

***
Sep-2018
1
***
37019
A
 
***
***
***
***
***
Oct-2018
1
***
 
 
 
***
***
***
***
***
Oct-2018
1
***
42549
A
 
***
***
***
***
***
Nov-2018
1
***
 
 
 
***
***
***
***
***
Dec-2018
1
***
 
 
 
***
***
***
***
***
Jan-2019
1
***
 
 
 
***
***
***
***
***
Jan-2019
1
***
37042
A
 
***
***
***
***
***
Feb-2019
1
***
42550
A
 
***
***
***
***
***
Mar-2019
1
***
42551
A
 
***
***
***
***
***
Jul-2019
1
***
 
 
 
***
***
***
***
***
Jul-2019
1
***
37034
A
 
***
***
***
***
***
Sep-2019
1
***
 
 
 
***
***
***
***
***
Oct-2019
1
***
 
 
 
***
***
***
***
***
Oct-2019
1
***
42552
A
 
***
***
***
***
***
Dec-2019
1
***
 
 
 
***
***
***
***
***
Jan-2020
1
***
42553
A
 
***
***
***
***
***
Feb-2020
1
***
 
 
 
***
***
***
***
***
Feb-2020
1
***
35970
B
 
***
***
***
***
***
Mar-2020
1
***
 
 
 
***
***
***
***
***
Mar-2020
1
***
35968
B
 
***
***
***
***
***
Apr-2020
1
***
 
 
 
***
***
***
***
***
Apr-2020
1
***
35972
B
 
***
***
***
***
***
May-2020
1
***
 
 
 
***
***
***
***
***
May-2020
1
***
36736
B
 
***
***
***
***
***
Jun-2020
1
***
 
 
 
***
***
***
***
***
Jun-2020
1
***
33941
B
 
***
***
***
***
***
Jul-2020
1
***
 
 
 
***
***
***
***
***
Jul-2020
1
***
35963
B
 
***
***
***
***
***

 
 
SA-2
SWA-PA-03729 58680-1F.TXT
BOEING PROPRIETARY
Page
2

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

Table 1A To
Purchase Agreement No. PA-03729
Aircraft Delivery, Description, Price and Advance Payments
737-8 Aircraft

 
Delivery

Date*
 
Number of

Aircraft
Escalation

Factor

(Airframe)
Manufacturer

Serial

Number
 
Aircraft
Block
 
 
Notes
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

***
Aug-2020
1
***
 
 
 
***
***
***
***
***
Aug-2020
1
***
36733
B
 
***
***
***
***
***
Sep-2020
1
***
 
 
 
***
***
***
***
***
Sep-2020
1
***
35971
B
 
***
***
***
***
***
Oct-2020
1
***
 
 
 
***
***
***
***
***
Oct-2020
1
***
38804
B
 
***
***
***
***
***
Nov-2020
1
***
 
 
 
***
***
***
***
***
Nov-2020
1
***
38805
B
 
***
***
***
***
***
Dec-2020
1
***
 
 
 
***
***
***
***
***
Jan-2021
1
***
 
 
 
***
***
***
***
***
Jan-2021
1
***
36729
B
 
***
***
***
***
***
Feb-2021
3
***
 
 
 
***
***
***
***
***
Mar-2021
3
***
 
 
 
***
***
***
***
***
Apr-2021
3
***
 
 
 
***
***
***
***
***
May-2021
3
***
 
 
 
***
***
***
***
***
Jun-2021
3
***
 
 
 
***
***
***
***
***
Jul-2021
3
***
 
 
 
***
***
***
***
***
Aug-2021
3
***
 
 
 
***
***
***
***
***
Sep-2021
3
***
 
 
 
***
***
***
***
***
Oct-2021
3
***
 
 
 
***
***
***
***
***
Nov-2021
2
***
 
 
 
***
***
***
***
***
Dec-2021
2
***
 
 
 
***
***
***
***
***
Jan-2022
3
***
 
 
 
***
***
***
***
***
Feb-2022
3
***
 
 
 
***
***
***
***
***
Mar-2022
3
***
 
 
 
***
***
***
***
***
Apr-2022
3
***
 
 
 
***
***
***
***
***
May-2022
3
***
 
 
 
***
***
***
***
***
Jun-2022
3
***
 
 
 
***
***
***
***
***

 
 
SA-2
SWA-PA-03729 58680-1F.TXT
BOEING PROPRIETARY
Page
3

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

Table 1A To
Purchase Agreement No. PA-03729
Aircraft Delivery, Description, Price and Advance Payments
737-8 Aircraft

 
Delivery

Date*
 
Number of

Aircraft
Escalation

Factor

(Airframe)
Manufacturer

Serial

Number
 
Aircraft
Block
 
 
Notes
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

***
Jul-2022
2
***
 
 
 
***
***
***
***
***
Aug-2022
2
***
 
 
 
***
***
***
***
***
Sep-2022
2
***
 
 
 
***
***
***
***
***
Oct-2022
2
***
 
 
 
***
***
***
***
***
Nov-2022
2
***
 
 
 
***
***
***
***
***
Dec-2022
2
***
 
 
 
***
***
***
***
***
Jan-2023
2
***
 
 
 
***
***
***
***
***
Feb-2023
2
***
 
 
 
***
***
***
***
***
Mar-2023
1
***
 
 
 
***
***
***
***
***
Apr-2023
1
***
 
 
 
***
***
***
***
***
May-2023
1
***
 
 
 
***
***
***
***
***
Jun-2023
1
***
 
 
 
***
***
***
***
***
Jul-2023
1
***
 
 
 
***
***
***
***
***
Aug-2023
1
***
 
 
 
***
***
***
***
***
Sep-2023
1
***
 
 
 
***
***
***
***
***
Oct-2023
1
***
 
 
 
***
***
***
***
***
Nov-2023
1
***
 
 
 
***
***
***
***
***
Dec-2023
1
***
 
 
 
***
***
***
***
***
Jan-2024
2
***
 
 
 
***
***
***
***
***
Feb-2024
2
***
 
 
 
***
***
***
***
***
Mar-2024
1
***
 
 
 
***
***
***
***
***
Apr-2024
1
***
 
 
 
***
***
***
***
***
May-2024
1
***
 
 
 
***
***
***
***
***
Jun-2024
1
***
 
 
 
***
***
***
***
***
Jul-2024
1
***
 
 
 
***
***
***
***
***
Aug-2024
1
***
 
 
 
***
***
***
***
***
Sep-2024
1
***
 
 
 
***
***
***
***
***
Oct-2024
1
***
 
 
 
***
***
***
***
***

 
 
SA-2
SWA-PA-03729 58680-1F.TXT
BOEING PROPRIETARY
Page
4

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

Table 1A To
Purchase Agreement No. PA-03729
Aircraft Delivery, Description, Price and Advance Payments
737-8 Aircraft

 
Delivery

Date*
 
Number of

Aircraft
Escalation

Factor

(Airframe)
Manufacturer

Serial

Number
 
Aircraft
Block
 
 
Notes
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

***
Nov-2024
1
***
 
 
 
***
***
***
***
***
Dec-2024
1
***
 
 
 
***
***
***
***
***
Total:
150
 
 
 
 
 
 
 
 
 

****
Notes:
1)    ***“

 
 
SA-2
SWA-PA-03729 58680-1F.TXT
BOEING PROPRIETARY
Page
5

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

Table 1B To
Purchase Agreement No. PA-03729
Aircraft Delivery, Description, Price and Advance Payments
737-7 Aircraft

Airframe Model/MTOW:
737-7
155500 pounds
 
Detail Specification:
 
D019A001-TBD (10/27/2011)
Engine Model/Thrust:
CFMLEAP-1B20
tbd
 
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 Aircraft:
 
***
 
 
 
 
 
 

 
Delivery

Date*
 
Number of

Aircraft
Escalation

Factor

(Airframe)
 
 
 
 
 
 
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

***
Apr-2019
3
***
 
 
***
***
***
***
***
May-2019
2
***
 
 
***
***
***
***
***
Jun-2019
2
***
 
 
***
***
***
***
***
Jul-2019
1
***
 
 
***
***
***
***
***
Aug-2019
2
***
 
 
***
***
***
***
***
Oct-2019
2
***
 
 
***
***
***
***
***
Nov-2019
1
***
 
 
***
***
***
***
***
Dec-2019
2
***
 
 
***
***
***
***
***
Feb-2020
1
***
 
 
***
***
***
***
***
Mar-2020
2
***
 
 
***
***
***
***
***
Apr-2020
1
***
 
 
***
***
***
***
***
May-2020
2
***
 
 
***
***
***
***
***
Jun-2020
1
***
 
 
***
***
***
***
***

 
 
SA-2
SWA-PA-03729 58680-1F.TXT
BOEING PROPRIETARY
Page
1

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

Table 1B To
Purchase Agreement No. PA-03729
Aircraft Delivery, Description, Price and Advance Payments
737-7 Aircraft

 
Delivery

Date*
 
Number of

Aircraft
Escalation

Factor

(Airframe)
 
 
 
 
 
 
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

***
Jul-2020
1
***
 
 
***
***
***
***
***
Aug-2020
1
***
 
 
***
***
***
***
***
Sep-2020
1
***
 
 
***
***
***
***
***
Oct-2020
2
***
 
 
***
***
***
***
***
Nov-2020
1
***
 
 
***
***
***
***
***
Dec-2020
1
***
 
 
***
***
***
***
***
Jan-2021
1
***
 
 
***
***
***
***
***
Total:
30
 
 
 
 
 
 
 
 

* ***
 
 
 
 
 

 
 
SA-2
SWA-PA-03729 58680-1F.TXT
BOEING PROPRIETARY
Page
2

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

737-8 AIRCRAFT CONFIGURATION
 
between
 
THE BOEING COMPANY
 
and
 
Southwest Airlines Co.
 
Exhibit A1 to Purchase Agreement Number PA-03729

SWA-PA-03729-EXA1
SA-2
Page
1
 
BOEING PROPRIETARY

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

Exhibit A1
737-8 AIRCRAFT CONFIGURATION
Dated December 13, 2011
relating to
BOEING MODEL 737-8 AIRCRAFT

The initial configuration of Customer's Model 737-8 Aircraft has been defined by
Boeing 737‑8 Airplane Description Document No. D019A007 Rev New dated
November 4, 2011 and is more fully discussed in Letter Agreement
SWA-PA-03729-LA-1106463 entitled “Open Matters.”

SWA-PA-03729-EXA1
SA-2
Page
2
 
BOEING PROPRIETARY

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

737-7 AIRCRAFT CONFIGURATION
 
between
 
THE BOEING COMPANY
 
and
 
Southwest Airlines Co.
 
Exhibit A2 to Purchase Agreement Number PA-03729

SWA-PA-03729-EXA2
SA-2
 
Page
1

BOEING PROPRIETARY

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

Exhibit A2
AIRCRAFT CONFIGURATION
Dated May 13, 2013
relating to
BOEING MODEL 737-7 AIRCRAFT

The contents of Exhibit A2 will be defined in accordance with the provisions of
Letter Agreement SWA-PA-03729-LA-1106463R1, “Open Matters”, to the Purchase
Agreement.

SWA-PA-03729-EXA2
SA-2
 
Page
2

BOEING PROPRIETARY

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

Exhibit B
AIRCRAFT DELIVERY REQUIREMENTS AND RESPONSIBILITIES
relating to
BOEING MODEL 737-8 and 737-7 AIRCRAFT

Both Boeing and Customer have certain documentation and approval
responsibilities at various times during the construction cycle of Customer’s
Aircraft that are critical to making the delivery of each Aircraft a positive
experience for both parties. This Exhibit B documents those responsibilities and
indicates recommended completion deadlines for the actions to be accomplished.
1.    GOVERNMENT DOCUMENTATION REQUIREMENTS.
Certain actions are required to be taken by Customer in advance of the scheduled
delivery month of each Aircraft with respect to obtaining certain government
issued documentation.
1.1    Airworthiness and Registration Documents. Not later than six (6) months
prior to delivery of each Aircraft, Customer will notify Boeing of the
registration number to be painted on the side of the Aircraft. In addition, and
not later than three (3) months prior to delivery of each Aircraft, Customer
will, by letter to the regulatory authority having jurisdiction, authorize the
temporary use of such registration numbers by Boeing during the pre-delivery
testing of the Aircraft.
Customer is responsible for furnishing any Temporary or Permanent Registration
Certificates required by any governmental authority having jurisdiction to be
displayed aboard the Aircraft after delivery.
1.2    Certificate of Sanitary Construction.
1.2.1    U.S. Registered Aircraft. Boeing will obtain from the United States
Public Health Service, a United States Certificate of Sanitary Construction to
be provided by Boeing to Customer and displayed aboard each Aircraft after
delivery to Customer.
1.2.2    Non-U.S. Registered Aircraft. If Customer requires a United States
Certificate of Sanitary Construction at the time of delivery of the Aircraft,
Customer will give written notice thereof to Boeing at least three (3) months
prior to delivery. Boeing will then use commercially reasonable efforts to
obtain the Certificate from the United States Public Health Service and present
it to Customer at the time of Aircraft delivery. The above Boeing obligation
only applies to commercial passenger-configured aircraft.
1.3    Customs Documentation.
1.3.1    Import Documentation. If the Aircraft is intended to be exported from
the United States, Customer must notify Boeing not later than three (3) months
prior to delivery of each Aircraft of any documentation required by the customs
authorities or by any other agency of the country of import.

SWA-PA-03729-EXB
SA-2
 
Page
2

BOEING PROPRIETARY

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

ESCALATION ADJUSTMENT
AIRFRAME AND OPTIONAL FEATURES
relating to
BOEING MODEL 737-8 and 737-7 AIRCRAFT

1.    ***

SWA-PA-03729-AE1
 
SA-2
 
 
Page 2
BOEING PROPRIETARY

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

BUYER FURNISHED EQUIPMENT VARIABLES
relating to
BOEING MODEL 737-8 and 737-7 AIRCRAFT

This Supplemental Exhibit BFE1 contains supplier selection dates, on-dock dates
and other requirements applicable to the Aircraft.
1.    Supplier Selection.
Customer will:
Select and notify Boeing of the suppliers and part numbers of the following BFE
items by the following dates:
Galley System
tbd
 
 
Galley Inserts
tbd
 
 
Seats (passenger)
tbd
 
 
Overhead & Audio System
tbd
 
 
In-Seat Video System
tbd
 
 
Miscellaneous Emergency Equipment
tbd
 
 
Cargo Handling Systems*
(Single Aisle Programs only)
tbd

*For a new certification, supplier requires notification ten (10) months prior
to Cargo Handling System on-dock date.
2.    On-dock Dates and Other Information.
On or before _______tbd__________, Boeing will provide to Customer the BFE
Requirements electronically through My Boeing Fleet (MBF in My Boeing
Configuration (MBC). These requirements may be periodically revised, setting
forth the items, quantities, on-dock dates and shipping instructions and other
requirements relating to the in-sequence installation of BFE. For planning
purposes, preliminary BFE on-dock dates are set forth below:

SWA-PA-03729-BFE1
SA-2
 
Page 2
BOEING PROPRIETARY

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

CUSTOMER SUPPORT VARIABLES
 
between
 
THE BOEING COMPANY
 
and
 
SOUTHWEST AIRLINES CO.
 
Supplemental Exhibit CS1-7MAX
to Purchase Agreement Number PA-03729

SWA-PA-03729-CS1-7MAX
SA-2
 
Page
1

BOEING PROPRIETARY

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

***
 
 
 
 

SWA-PA-03729-CS1-7MAX
SA-2
 
Page
2

BOEING PROPRIETARY

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

SWA-PA-03729-CS1-7MAX
SA-2
 
Page
3

BOEING PROPRIETARY

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

ENGINE ESCALATION
ENGINE WARRANTY AND PATENT INDEMNITY
relating to
BOEING MODEL 737-8 and 737-7 AIRCRAFT

***

SWA-PA-03729-EE1
SA-2
 
Page
2

BOEING PROPRIETARY

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

SERVICE LIFE POLICY COMPONENTS
relating to
BOEING MODEL 737-8 and 737-7 AIRCRAFT

This is the listing of SLP Components for the Aircraft which relate to Part 3,
Boeing Service Life Policy of Exhibit C, Product Assurance Document to the AGTA
and is a part of Purchase Agreement No. PA-03729.
1.    Wing.
(i)    Upper and lower wing skins and stiffeners between the forward and rear
wing spars.
(ii)    Wing spar webs, chords and stiffeners.
(iii)    Inspar wing ribs.
(iv)    Inspar splice plates and fittings.
(v)    Main landing gear support structure.
(vi)    Wing center section lower beams, spanwise beams and floor beams, but not
the seat tracks attached to floor beams.
(vii)    Wing‑to‑body structural attachments.
(viii)    Engine strut support fittings attached directly to wing primary
structure.
(ix)    Support structure in the wing for spoilers and spoiler actuators; for
aileron hinges and reaction links; for leading edge devices and trailing edge
flaps; and the winglets.
(x)    Trailing edge flap tracks and carriages.
(xi)    Aileron leading edge device and trailing edge flap internal, fixed
attachment and actuator support structure.

2.    Body.
(i)    External surface skins and doublers, longitudinal stiffeners, longerons
and circumferential rings and frames between the forward pressure bulkhead and
the vertical stabilizer rear spar bulkhead and structural support and enclosure
for the APU but excluding all system components and related installation and
connecting devices, insulation, lining, and decorative panels and related
installation and connecting devices.
(ii)    Window and windshield structure but excluding the windows and
windshields.
(iii)    Fixed attachment structure of the passenger doors, cargo doors and
emergency exits, excluding door mechanisms and movable hinge components. Sills
and frames around the body openings for the passenger doors, cargo doors and
emergency exits, excluding scuff plates and pressure seals.

SWA-PA-03729-SLP1
SA-2
 
Page
2

BOEING PROPRIETARY

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

[boeing.jpg]

SWA‑PA‑03729‑LA‑1106463R1
Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611
Subject:
Open Matters
Reference:
Purchase Agreement No. PA‑03729 (Purchase Agreement) between The Boeing Company
(Boeing) and Southwest Airlines Co. (Customer) relating to Model 737‑8 and 737-7
aircraft (Aircraft)

This letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement. All terms used but not defined in this Letter Agreement shall have
the same meaning as in the Purchase Agreement.
Given the long period of time between Purchase Agreement signing and delivery of
the first Aircraft and the continued development of the Aircraft program,
certain elements have not yet been defined. In consideration, Boeing and
Customer agree to work together as the Aircraft program develops as follows:
1.
Aircraft Delivery Schedule.

1.1.    ***

1.2    Customer and Boeing will consult on a frequent basis to keep each other
informed as to Customer’s fleet plans and Boeing’s production plans in order to
meet the requirements of both parties. Based on such review and discussions,
Boeing will use its best commercially reasonable efforts to meet Customer’s
fleet needs.

SWA‑PA‑03729‑LA‑1106463R1
SA-2
Open Matters
Page
1

BOEING PROPRIETARY

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

[boeing.jpg]

2.
Aircraft Configuration.

2.1.    Model 737-8. The initial configuration of Customer's Model 737-8
Aircraft has been defined by Boeing 737‑8 Airplane Description Document No.
D019A007 Rev New dated November 4, 2011 as described in Article 1 and Exhibit A1
of the Purchase Agreement (Initial Configuration). ***

SWA‑PA‑03729‑LA‑1106463R1
SA-2
Open Matters
Page
2

BOEING PROPRIETARY

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

[boeing.jpg]

SWA‑PA‑03729‑LA‑1106463R1
SA-2
Open Matters
Page
3

BOEING PROPRIETARY

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

[boeing.jpg]

3.***
 
4.Other Letter Agreements.
Boeing and Customer acknowledge that as they work together to develop the
Aircraft program and as Boeing refines the definition of the Aircraft and
associated production processes, there may be a need to execute additional
letter agreements or amend letter agreements addressing one or more of the
following:
4.1.    Software. Additional provisions relating to software and software
loading.
4.2.    Seller Purchased Equipment (SPE) and/or In-Flight Entertainment (IFE).
Provisions relating to the terms under which Boeing may offer or install SPE in
the Aircraft.
4.3.    Buyer Furnished Equipment (BFE). Provisions relating to the terms under
which Boeing may install and certify Customer’s BFE in the Aircraft.
5.
Confidentiality.

Customer understands that certain commercial and financial information contained
in this Letter Agreement is considered by Boeing as confidential and has

SWA‑PA‑03729‑LA‑1106463R1
SA-2
Open Matters
Page
4

BOEING PROPRIETARY

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

[boeing.jpg]

value precisely because it is not available generally 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.
Very truly yours,
THE BOEING COMPANY
By

/s/ Jeff Solomon
Its

       Attorney‑In‑Fact
ACCEPTED AND AGREED TO this
Date:
May 13, 2013
SOUTHWEST AIRLINES CO.
By

/s/ Michael Van de Van
Its
Executive Vice President

SWA‑PA‑03729‑LA‑1106463R1
SA-2
Open Matters
Page
5

BOEING PROPRIETARY

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

[boeing.jpg]

SWA-PA-03729-LA-1106464

Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611

Subject:
***
 
 
 
 
 
 
 
 
 

SWA‑PA‑03729‑LA‑1106464
SA-2
***
Page
1

BOEING PROPRIETARY

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

[boeing.jpg]

SWA-PA-03729-LA-1106465
Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611
Subject:
***
 
 

SWA-PA-03729-LA-1106465
SA-2
***
Page
1
BOEING PROPRIETARY

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

[boeing.jpg]

SWA-PA-03729-LA-1106468
Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611
Subject:
***
Reference:
Purchase Agreement No. PA-03729 (Purchase Agreement) between The Boeing Company
(Boeing) and Southwest Airlines Co. (Customer) relating to Model 737-8 and 737-7
aircraft (Aircraft)

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

SWA-PA-03729-LA-1106468
SA-2
***
Page
1

BOEING PROPRIETARY

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

[boeing.jpg]

SWA‑PA‑03729‑LA‑1106469R1
Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611
Subject:
***
References:
1)
Purchase Agreement No. PA‑03729 (Purchase Agreement) between The Boeing Company
(Boeing) and Southwest Airlines Co. (Customer) relating to Model 737‑8 and 737-7
aircraft (Aircraft)
 
2)
Letter Agreement SWA-PA-03729-LA-1106471, “Substitute Aircraft,” to the Purchase
Agreement (Substitution Letter Agreement)

This letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement. All terms used but not defined in this Letter Agreement shall have
the same meaning as in the Purchase Agreement.
1.
***

  

SWA‑PA‑03729‑LA‑1106469R1
SA-2
***
Page
1

BOEING PROPRIETARY

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

[boeing.jpg]

2.***

3.***

SWA‑PA‑03729‑LA‑1106469R1
SA-2
***
Page
2

BOEING PROPRIETARY

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

[boeing.jpg]

4.
***

5.***
6.***

7.***

8.***

SWA‑PA‑03729‑LA‑1106469R1
SA-2
***
Page
3

BOEING PROPRIETARY

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

[boeing.jpg]

9.***

10.***

11.Assignment.
Unless otherwise noted herein, *** described in this Letter Agreement are
provided *** in consideration of Customer’s taking title to the Aircraft at time
of delivery and becoming the operator of the Aircraft. This Letter Agreement
cannot be assigned, in whole or in part, without the prior written consent of
Boeing.
12.Confidentiality.
Customer understands that certain commercial and financial information contained
in this Letter Agreement is considered by Boeing as confidential and has value
precisely because it is not available generally 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.

SWA‑PA‑03729‑LA‑1106469R1
SA-2
***
Page
4

BOEING PROPRIETARY

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

[boeing.jpg]

Very truly yours,
THE BOEING COMPANY
By

/s/ Jeff Solomon
Its
     
       Attorney‑In‑Fact
ACCEPTED AND AGREED TO this
Date:
May 13 , 2013
SOUTHWEST AIRLINES CO.
By

/s/ Michael Van de Ven
Its
Executive Vice President

SWA‑PA‑03729‑LA‑1106469R1
SA-2
***
Page
5

BOEING PROPRIETARY

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

[boeing.jpg]

SWA-PA-03729-LA-1106470R1
Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611
Subject:
***
Reference:
Purchase Agreement No. PA-03729 (Purchase Agreement) between The Boeing Company
(Boeing) and Southwest Airlines Co. (Customer) relating to Model 737-8 and 737-7
aircraft (Aircraft)

This letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement. All terms used but not defined in this Letter Agreement shall have
the same meaning as in the Purchase Agreement.
1.    ***

2.    ***

3.    ***

SWA-PA-03729-LA-1106470R1
SA-2
***
Page
1

BOEING PROPRIETARY

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

[boeing.jpg]

 
4.    ***

5.    ***

6.    ***

SWA-PA-03729-LA-1106470R1
SA-2
***
Page
2

BOEING PROPRIETARY

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

[boeing.jpg]

7.    ***

8.    Assignment.
Notwithstanding any other provisions of the Purchase Agreement, the rights and
obligations described in this Letter Agreement are provided to Customer in
consideration of Customer’s becoming the operator of the Aircraft and cannot be
assigned in whole or, in part.
9.    Confidential Treatment.
Customer understands that certain commercial and financial information contained
in this Letter Agreement is considered by Boeing as confidential and has value
precisely because it is not available generally 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 Section) 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 Section, 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.

SWA-PA-03729-LA-1106470R1
SA-2
***
Page
3

BOEING PROPRIETARY

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

[boeing.jpg]

Very truly yours,

THE BOEING COMPANY
 
By
/s/ Jeff Solomon
 
Its
Attorney-In-Fact
 
ACCEPTED AND AGREED TO this
 
Date:
May 13 , 2013
 
SOUTHWEST AIRLINES CO.
 
By
/s/ Michael Van de Ven
 
Its
Executive Vice President

SWA-PA-03729-LA-1106470R1
SA-2
***
Page
4

BOEING PROPRIETARY

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

[boeing.jpg]

SWA‑PA‑03729‑LA‑1106471R1
Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611
Subject:
Substitute Aircraft
References:
1)
Purchase Agreement No. PA‑03729 (Purchase Agreement) between The Boeing Company
(Boeing) and Southwest Airlines Co. (Customer) relating to Model 737‑8 and 737-7
aircraft (Aircraft)
 
2)
Letter Agreement No. SWA‑PA‑03729‑LA‑1106469, ***

This letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement. All terms used but not defined in this Letter Agreement shall have
the same meaning as in the Purchase Agreement.
1.    ***

2.    Deleted.

3.    ***

SWA‑PA‑03729‑LA‑1106471R1
SA-2
Aircraft Model Substitution
Page
1

BOEING PROPRIETARY

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

[boeing.jpg]

4.    ***

5.    ***

SWA‑PA‑03729‑LA‑1106471R1
SA-2
Aircraft Model Substitution
Page
2

BOEING PROPRIETARY

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

[boeing.jpg]

6.    Assignment.
Notwithstanding any other provisions of the Purchase Agreement, the rights and
obligations described in this Letter Agreement are provided to Customer in
consideration of Customer’s becoming the operator of the Aircraft and cannot be
assigned in whole or, in part.
7.    Confidential Treatment.
Customer understands that certain commercial and financial information contained
in this Letter Agreement is considered by Boeing as confidential and has value
precisely because it is not available generally 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.

SWA‑PA‑03729‑LA‑1106471R1
SA-2
Aircraft Model Substitution
Page
3

BOEING PROPRIETARY

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

[boeing.jpg]

Very truly yours,
THE BOEING COMPANY
By

/s/ Jeff Solomon
Its
     
       Attorney‑In‑Fact
ACCEPTED AND AGREED TO this
Date:
May 13 , 2013
SOUTHWEST AIRLINES CO.
By

/s/ Michael Van de Ven
Its
Executive Vice President

SWA‑PA‑03729‑LA‑1106471R1
SA-2
Aircraft Model Substitution
Page
4

BOEING PROPRIETARY

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

[boeing.jpg]

SWA-PA-03729-LA-1106472R1
Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611
Subject:
***
Reference:
Purchase Agreement No. PA-03729 (Purchase Agreement) between The Boeing Company
(Boeing) and Southwest Airlines Co. (Customer) relating to Model 737-8 and 737-7
aircraft (Aircraft)

This letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement. All terms used but not defined in this Letter Agreement shall have
the same meaning as in the Purchase Agreement.
1.    ***
 
2.    ***

SWA‑PA‑03729‑LA‑11064672R1
SA-2
***
Page
1

BOEING PROPRIETARY
 
 

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

[boeing.jpg]

3.    Confidentiality.
Customer understands that certain commercial and financial information contained
in this Letter Agreement is considered by Boeing as confidential and has value
precisely because it is not available generally 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.
Very truly yours,
THE BOEING COMPANY
By

/s/ Jeff Solomon
Its
     
       Attorney-In-Fact
ACCEPTED AND AGREED TO this
Date:
May 13, 2013
SOUTHWEST AIRLINES CO.
By

/s/ Michael Van de Ven
Its
Executive Vice President

SWA‑PA‑03729‑LA‑11064672R1
SA-2
***
Page
2

BOEING PROPRIETARY
 
 

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

Attachment 1 To
Letter Agreement No. LA 1106474
Option Aircraft Delivery, Description, Price and Advance Payments

Airframe Model/MTOW:
737-8
175900 pounds
 
Detail Specification:
D019A007-NEW (11/4/2011)
Engine Model/Thrust:
CFMLEAP-1B26
0 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)/In-Flight Entertainment (IFE)// Estimate:
***
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Refundable Deposit/Aircraft at Def Agreemt:
***
 
 
 
 
 
 

 
Delivery

Date*
 
Number of

Aircraft
Escalation

Factor

(Airframe)
 
 
 
 
Aircraft

Block
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

***
Jan-2021
1
***
 
D
***
***
***
***
***
Jan-2021
1
***
 
 
***
***
***
***
***
Feb-2021
1
***
 
D
***
***
***
***
***
Mar-2021
1
***
 
 
***
***
***
***
***
Apr-2021
1
***
 
D
***
***
***
***
***
Apr-2021
1
***
 
 
***
***
***
***
***
May-2021
1
***
 
D
***
***
***
***
***
May-2021
1
***
 
 
***
***
***
***
***
Jun-2021
1
***
 
D
***
***
***
***
***
Jul-2021
2
***
 
 
***
***
***
***
***
Jul-2021
1
***
 
D
***
***
***
***
***
Aug-2021
1
***
 
D
***
***
***
***
***
Sep-2021
1
***
 
 
***
***
***
***
***

SWA‑PA‑03729‑LA1106474 58960-10.TXT
SA-2
 
Page
1

BOEING PROPRIETARY

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

Attachment 1 To
Letter Agreement No. LA 1106474
Option Aircraft Delivery, Description, Price and Advance Payments

 
Delivery

Date*
 
Number of

Aircraft
Escalation

Factor

(Airframe)
 
 
 
 
Aircraft

Block
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-2021
1
***
 
D
***
***
***
***
***
Oct-2021
1
***
 
 
***
***
***
***
***
Nov-2021
1
***
 
D
***
***
***
***
***
Dec-2021
1
***
 
 
***
***
***
***
***
Jan-2022
1
***
 
D
***
***
***
***
***
Jan-2022
1
***
 
 
***
***
***
***
***
Feb-2022
1
***
 
D
***
***
***
***
***
Feb-2022
1
***
 
 
***
***
***
***
***
Mar-2022
1
***
 
D
***
***
***
***
***
Mar-2022
1
***
 
 
***
***
***
***
***
Apr-2022
1
***
 
D
***
***
***
***
***
May-2022
1
***
 
 
***
***
***
***
***
Jun-2022
1
***
 
D
***
***
***
***
***
Jul-2022
1
***
 
 
***
***
***
***
***
Jul-2022
1
***
 
D
***
***
***
***
***
Aug-2022
1
***
 
 
***
***
***
***
***
Sep-2022
1
***
 
D
***
***
***
***
***
Oct-2022
1
***
 
 
***
***
***
***
***
Oct-2022
1
***
 
D
***
***
***
***
***
Nov-2022
1
***
 
 
***
***
***
***
***
Nov-2022
1
***
 
D
***
***
***
***
***
Dec-2022
1
***
 
 
***
***
***
***
***
Dec-2022
1
***
 
D
***
***
***
***
***
Jan-2023
1
***
 
 
***
***
***
***
***
Jan-2023
1
***
 
D
***
***
***
***
***

SWA‑PA‑03729‑LA1106474 58960-10.TXT
SA-2
 
Page
2

BOEING PROPRIETARY

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

Attachment 1 To
Letter Agreement No. LA 1106474
Option Aircraft Delivery, Description, Price and Advance Payments

 
Delivery

Date*
 
Number of

Aircraft
Escalation

Factor

(Airframe)
 
 
 
 
Aircraft

Block
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

***
Feb-2023
1
***
 
 
***
***
***
***
***
Feb-2023
1
***
 
D
***
***
***
***
***
Mar-2023
1
***
 
 
***
***
***
***
***
Mar-2023
1
***
 
D
***
***
***
***
***
Apr-2023
1
***
 
 
***
***
***
***
***
Apr-2023
1
***
 
D
***
***
***
***
***
May-2023
1
***
 
 
***
***
***
***
***
May-2023
1
***
 
D
***
***
***
***
***
Jun-2023
1
***
 
 
***
***
***
***
***
Jun-2023
1
***
 
D
***
***
***
***
***
Jul-2023
1
***
 
 
***
***
***
***
***
Aug-2023
1
***
 
D
***
***
***
***
***
Aug-2023
1
***
 
 
***
***
***
***
***
Sep-2023
1
***
 
D
***
***
***
***
***
Sep-2023
1
***
 
 
***
***
***
***
***
Oct-2023
1
***
 
D
***
***
***
***
***
Oct-2023
1
***
 
 
***
***
***
***
***
Nov-2023
1
***
 
D
***
***
***
***
***
Nov-2023
1
***
 
 
***
***
***
***
***
Dec-2023
1
***
 
D
***
***
***
***
***
Dec-2023
1
***
 
 
***
***
***
***
***
Jan-2024
1
***
 
D
***
***
***
***
***
Jan-2024
1
***
 
 
***
***
***
***
***
Feb-2024
1
***
 
D
***
***
***
***
***
Feb-2024
1
***
 
 
***
***
***
***
***

SWA‑PA‑03729‑LA1106474 58960-10.TXT
SA-2
 
Page
3

BOEING PROPRIETARY

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

Attachment 1 To
Letter Agreement No. LA 1106474
Option Aircraft Delivery, Description, Price and Advance Payments

 
Delivery

Date*
 
Number of

Aircraft
Escalation

Factor

(Airframe)
 
 
 
 
Aircraft

Block
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

***
Mar-2024
1
***
 
D
***
***
***
***
***
Mar-2024
1
***
 
 
***
***
***
***
***
Apr-2024
1
***
 
D
***
***
***
***
***
Apr-2024
1
***
 
 
***
***
***
***
***
May-2024
1
***
 
D
***
***
***
***
***
May-2024
1
***
 
 
***
***
***
***
***
Jun-2024
1
***
 
D
***
***
***
***
***
Jun-2024
1
***
 
 
***
***
***
***
***
Jul-2024
1
***
 
D
***
***
***
***
***
Aug-2024
1
***
 
 
***
***
***
***
***
Aug-2024
1
***
 
D
***
***
***
***
***
Sep-2024
1
***
 
 
***
***
***
***
***
Sep-2024
1
***
 
D
***
***
***
***
***
Oct-2024
1
***
 
 
***
***
***
***
***
Oct-2024
1
***
 
D
***
***
***
***
***
Nov-2024
1
***
 
 
***
***
***
***
***
Nov-2024
1
***
 
D
***
***
***
***
***
Dec-2024
2
***
 
 
***
***
***
***
***
Jan-2025
3
***
 
 
***
***
***
***
***
Feb-2025
3
***
 
 
***
***
***
***
***
Mar-2025
3
***
 
 
***
***
***
***
***
Apr-2025
3
***
 
 
***
***
***
***
***
May-2025
3
***
 
 
***
***
***
***
***
Jun-2025
3
***
 
 
***
***
***
***
***
Jul-2025
3
***
 
 
***
***
***
***
***

SWA‑PA‑03729‑LA1106474 58960-10.TXT
SA-2
 
Page
4

BOEING PROPRIETARY

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

Attachment 1 To
Letter Agreement No. LA 1106474
Option Aircraft Delivery, Description, Price and Advance Payments

 
Delivery

Date*
 
Number of

Aircraft
Escalation

Factor

(Airframe)
 
 
 
 
Aircraft

Block
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

***
Aug-2025
3
***
 
 
***
***
***
***
***
Sep-2025
3
***
 
 
***
***
***
***
***
Oct-2025
3
***
 
 
***
***
***
***
***
Nov-2025
3
***
 
 
***
***
***
***
***
Dec-2025
3
***
 
 
***
***
***
***
***
Jan-2026
3
***
 
 
***
***
***
***
***
Feb-2026
3
***
 
 
***
***
***
***
***
Mar-2026
3
***
 
 
***
***
***
***
***
Apr-2026
3
***
 
 
***
***
***
***
***
May-2026
3
***
 
 
***
***
***
***
***
Jun-2026
3
***
 
 
***
***
***
***
***
Jul-2026
3
***
 
 
***
***
***
***
***
Aug-2026
3
***
 
 
***
***
***
***
***
Sep-2026
3
***
 
 
***
***
***
***
***
Oct-2026
3
***
 
 
***
***
***
***
***
Nov-2026
3
***
 
 
***
***
***
***
***
Dec-2026
3
***
 
 
***
***
***
***
***
Jan-2027
3
***
 
 
***
***
***
***
***
Feb-2027
3
***
 
 
***
***
***
***
***
Mar-2027
3
***
 
 
***
***
***
***
***
Apr-2027
3
***
 
 
***
***
***
***
***
May-2027
3
***
 
 
***
***
***
***
***
Jun-2027
3
***
 
 
***
***
***
***
***
Jul-2027
3
***
 
 
***
***
***
***
***
Aug-2027
3
***
 
 
***
***
***
***
***

SWA‑PA‑03729‑LA1106474 58960-10.TXT
SA-2
 
Page
5

BOEING PROPRIETARY

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

Attachment 1 To
Letter Agreement No. LA 1106474
Option Aircraft Delivery, Description, Price and Advance Payments

 
Delivery

Date*

Number of

Aircraft
Escalation

Factor

(Airframe)
 
 
 
 
Aircraft

Block
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

***
Sep-2027
3
***
 
 
***
***
***
***
***
Oct-2027
3
***
 
 
***
***
***
***
***
Nov-2027
3
***
 
 
***
***
***
***
***
Dec-2027
3
***
 
 
***
***
***
***
***
Total:
191
 
 
 
 
 
 
 
 

* ***
 

SWA‑PA‑03729‑LA1106474 58960-10.TXT
SA-2
 
Page
6

BOEING PROPRIETARY

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

[boeing.jpg]

SWA‑PA‑03729‑LA‑1106476
Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611
Subject:
***
Reference:
Purchase Agreement No. PA-03729 (Purchase Agreement) between The Boeing Company
(Boeing) and Southwest Airlines Co. (Customer) relating to Model 737-8 and 737-7
aircraft (Aircraft)

This letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement. All terms used but not defined in this Letter Agreement shall have
the same meaning as in the Purchase Agreement.
The Purchase Agreement incorporates the terms and conditions of Aircraft General
Terms Agreement dated as of December13, 2011 identified as SWA-AGTA between
Boeing and Customer (AGTA). This Letter Agreement modifies certain terms and
conditions of the AGTA with respect to the Aircraft.
1.    ***

SWA‑PA‑03729‑LA1106476
SA-2
***
Page 1
BOEING PROPRIETARY

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

[boeing.jpg]

SWA-PA-03729-LA-1106477
Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611
Subject:
***
Reference:
Purchase Agreement No. PA-03729 (Purchase Agreement) between The Boeing Company
(Boeing) and Southwest Airlines Co. (Customer) relating to Model 737-8 and 737-7
aircraft (Aircraft)

This letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement. All terms used but not defined in this Letter Agreement shall have
the same meaning as in the Purchase Agreement.
Recitals
1.***
2.***
Agreement
1.    Covered Aircraft.
The Program shall apply to each of the Aircraft operated by Customer on
Customer's routes during the Program Term (Covered Aircraft).
2.    ***

SWA-PA-03729-LA-1106477 SA-2
*** Page 1
BOEING PROPRIETARY

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

[boeing.jpg]

SWA‑PA‑03729‑LA‑1106479R1
Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611
Subject:
***
Reference:
Purchase Agreement No. PA-03729 (Purchase Agreement) between The Boeing Company
(Boeing) and Southwest Airlines Co. (Customer) relating to Model 737-8 and 737-7
aircraft (Aircraft)

This letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement. All terms used but not defined in this Letter Agreement shall have
the same meaning as in the Purchase Agreement.
1.    ***

SWA‑PA‑03729‑LA‑1106479R1
SA-2
***
Page
1
BOEING PROPRIETARY

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

[boeing.jpg]

    

2.    Assignment. Notwithstanding any other provisions of the Purchase
Agreement, the rights and obligations described in this Letter Agreement are
provided to Customer in consideration of Customer’s becoming the operator of the
Aircraft and cannot be assigned in whole or, in part.

3.    Confidentiality. Customer understands that certain commercial and
financial information contained in this Letter Agreement is considered by Boeing
as confidential and has value precisely because it is not available generally 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 Section) 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 Section, 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.

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Very truly yours,
THE BOEING COMPANY
By

/s/ Jeff Solomon
Its
     
       Attorney-In-Fact
ACCEPTED AND AGREED TO this
Date:
May 13, 2013
SOUTHWEST AIRLINES CO.
By

/s/ Michael Van de Ven
Its
Executive Vice President

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SWA‑PA‑03729‑LA‑1106480R1
Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611
Subject:
***
Reference:
Purchase Agreement No. PA-03729 (Purchase Agreement) between The Boeing Company
(Boeing) and Southwest Airlines Co. (Customer) relating to Model 737-8 and 737-7
aircraft (Aircraft)

This letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement. All terms used but not defined in this Letter Agreement shall have
the same meaning as in the Purchase Agreement.
1.    ***
2.    ***
3.    Assignment. Notwithstanding any other provisions of the Purchase
Agreement, the rights and obligations described in this Letter Agreement are
provided to Customer in consideration of Customer’s becoming the operator of the
Aircraft and cannot be assigned in whole or, in part.

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Confidentiality. Customer understands that certain commercial and financial
information contained in this Letter Agreement is considered by Boeing as
confidential and has value precisely because it is not available generally 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.

Very truly yours,
THE BOEING COMPANY
By

/s/ Jeff Solomon
Its
     
       Attorney-In-Fact
ACCEPTED AND AGREED TO this
Date:
May 13, 2013
SOUTHWEST AIRLINES CO.
By

/s/ Michael Van de Ven
Its
Executive Vice President

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SWA‑PA‑03729‑LA‑1106481R2

Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611

Subject:
***
Reference:
Purchase Agreement No. PA-03729 (Purchase Agreement) between The Boeing Company
(Boeing) and Southwest Airlines Co. (Customer) relating to Model 737-8 and 737-7
aircraft (Aircraft)

This letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement. All terms used but not defined in this Letter Agreement shall have
the same meaning as in the Purchase Agreement.
1.***

2.***
    
3.***

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4.***

5.***

6.***

7.Assignment.
Notwithstanding any other provisions of the Purchase Agreement, the rights and
obligations described in this Letter Agreement are provided to Customer in

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consideration of Customer’s becoming the operator of the Aircraft and cannot be
assigned in whole or, in part.
8.Confidentiality.
Customer understands that certain commercial and financial information contained
in this Letter Agreement is considered by Boeing as confidential and has value
precisely because it is not available generally 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.

Very truly yours,

THE BOEING COMPANY
 
By
/s/ Jeff Solomon
 
Its
Attorney-In-Fact
 
ACCEPTED AND AGREED TO this
 
Date:
May 13 , 2013
 
SOUTHWEST AIRLINES CO.
 
By
/s/ Michael Van de Ven
 
Its
Executive Vice President

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SWA‑PA‑03729‑LA‑1106482
Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611
Subject:
***
Reference:
Purchase Agreement No. PA-03729 (Purchase Agreement) between The Boeing Company
(Boeing) and Southwest Airlines Co. (Customer) relating to Model 737-8 and 737-7
aircraft (Aircraft)

This letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement. All terms used but not defined in this Letter Agreement shall have
the same meaning as in the Purchase Agreement.
***
***
1.***
    
2.Assignment.
Notwithstanding any other provisions of the Purchase Agreement, the rights and
obligations described in this Letter Agreement are provided to Customer in
consideration of Customer’s becoming the operator of the Aircraft and cannot be
assigned in whole or, in part.

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SWA‑PA‑03729‑LA‑1106483
Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611
Subject:
***
Reference:
Purchase Agreement No. PA-03729 (Purchase Agreement) between The Boeing Company
(Boeing) and Southwest Airlines Co. (Customer) relating to Model 737-8 and 737-7
aircraft (Aircraft)

This letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement. All terms used but not defined in this Letter Agreement shall have
the same meaning as in the Purchase Agreement.
1.***
2.Assignment.
Notwithstanding any other provisions of the Purchase Agreement, the rights and
obligations described in this Letter Agreement are provided to Customer in
consideration of Customer’s becoming the operator of the Aircraft and cannot be
assigned in whole or, in part.
3.Confidentiality.
Customer understands that certain commercial and financial information contained
in this Letter Agreement is considered by Boeing as confidential and has value
precisely because it is not available generally 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

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SWA-PA-03729-LA-1106484
Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611
Subject:
***
Reference:
Purchase Agreement No. PA-03729 (Purchase Agreement) between The Boeing Company
(Boeing) and Southwest Airlines Co. (Customer) relating to Model 737-8 and 737-7
aircraft (Aircraft)

This letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement. All terms used but not defined in this Letter Agreement shall have
the same meaning as in the Purchase Agreement.
1.    Defined Terms: The following capitalized terms have the following meaning:
1.1    ***
1.2    ***
1.3    Program Aircraft means each Aircraft specified in Table 1 of the Purchase
Agreement as of the date of this Letter.
2.    ***

3.    ***

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***
 

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***

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***

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***

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***

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***
***

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SWA-PA-03729-LA-1106485

Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611

Subject:
***
 
 
Reference:
Aircraft General Terms Agreement No. SWA-AGTA (AGTA) between The Boeing Company
(Boeing) and Southwest Airlines Co. (Customer)
 
 
 
Purchase Agreement No. PA-03729 (Purchase Agreement) between Boeing and Customer
relating to Model 737-8 and 737-7 aircraft (Aircraft)
 
 

This letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement, including the AGTA. All terms used but not defined in this Letter
Agreement shall have the same meaning as in the Purchase Agreement.
1.
***

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SWA-PA-03729-LA-1300943

Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611

Subject:
***
 
 
Reference:
Purchase Agreement No. PA-03729 (Purchase Agreement) between The Boeing Company
(Boeing) and Southwest Airlines Co. (Customer) relating to Model 737-8 and 737-7
aircraft (Aircraft)
 
 

This letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement. All terms used but not defined in this Letter Agreement shall have
the same meaning as in the Purchase Agreement.
1.***
2.Confidentiality.
Customer understands that certain commercial and financial information contained
in this Letter Agreement is considered by Boeing as confidential and has value
precisely because it is not available generally 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.

SWA-PA-03729-LA-1300943
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Very truly yours,

THE BOEING COMPANY
 
By
/s/ Jeff Solomon
 
Its
Attorney-In-Fact
 
ACCEPTED AND AGREED TO this
 
Date:
May 13, 2013
 
SOUTHWEST AIRLINES CO.
 
By
/s/ Michael Van de Ven
 
Its
Executive Vice President

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SWA-PA-03729-LA-1301168

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

Subject:
***
 
 
Reference:
Purchase Agreement No. 3729 (Purchase Agreement) between The Boeing Company
(Boeing) and Southwest Airlines Co. (Customer) relating to Model 737-7 and 737-8
aircraft

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

***

1.***
 

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2.
Assignment.

*** described in this Letter Agreement are provided *** in consideration of
Customer’s taking title to the applicable Firm Aircraft or Block D Option
Aircraft at time of delivery and becoming the operator of the applicable Firm
Aircraft or Block D Option Aircraft. Under no circumstances will Customer be
permitted to assign the business terms set forth herein.

3.
Confidentiality

Customer understands that certain commercial and financial information contained
in this Letter Agreement is considered by Boeing as confidential and has value
precisely because it is not available generally 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 paragraph) 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 paragraph, or

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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.

Very truly yours,

THE BOEING COMPANY
 
By
/s/ Jeff Solomon
 
Its
Attorney-In-Fact
 
ACCEPTED AND AGREED TO this
 
Date:
May 13, 2013
 
SOUTHWEST AIRLINES CO.
 
By
/s/ Michael Van de Ven
 
Its
Executive Vice President

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SWA-PA-01810/03729-LA-1301169

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

Subject:
***
 
 
Reference:
(a) Purchase Agreement No. 1810 between The Boeing Company (Boeing) and
Southwest Airlines Co. (Customer) relating to Model 737-700 and 737-800 aircraft
(NG Purchase Agreement)
 
(b) Purchase Agreement No. 3729 between Boeing and Customer relating to
Model 737-7 and 737-8 aircraft (MAX Purchase Agreement)
 
(c) Letter Agreement SWA-PA-01810-LA-1105884, “Option Aircraft”, (Option Letter
Agreement).

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

1.***

2.    ***

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3.
***

4.Assignment.
*** described in this Letter Agreement are provided *** in consideration of
Customer’s taking title to the Firm Aircraft and Option Aircraft at time of
delivery and becoming the operator of the Firm Aircraft and Option Aircraft.
Under no circumstances will Customer be permitted to assign the business terms
set forth herein.

SWA-PA-03729-LA-01810/1301169
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5.
Confidentiality

Customer understands that certain commercial and financial information contained
in this Letter Agreement is considered by Boeing as confidential and has value
precisely because it is not available generally 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 paragraph) 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 paragraph, 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.

Very truly yours,

THE BOEING COMPANY
 
By
/s/ Jeff Solomon
 
Its
Attorney-In-Fact
 
ACCEPTED AND AGREED TO this
 
Date:
May 13, 2013
 
SOUTHWEST AIRLINES CO.
 
By
/s/ Michael Van de Ven
 
Its
Executive Vice President

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SWA‑PA‑03729‑LA‑1301170
Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611
Subject:
***
Reference:
Purchase Agreement No. PA‑03729 (Purchase Agreement) between The Boeing Company
(Boeing) and Southwest Airlines Co. (Customer) relating to Model 737‑8 and 737-7
aircraft

This letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement. All terms used but not defined in this Letter Agreement shall have
the same meaning as in the Purchase Agreement.
1.
***

2.
***

 

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3.Assignment.
Unless otherwise noted herein, *** described in this Letter Agreement are
provided *** in consideration of Customer’s taking title to the 737-7 Aircraft
at time of delivery and becoming the operator of the 737-7 Aircraft. This Letter
Agreement cannot be assigned, in whole or in part, without the prior written
consent of Boeing.
4.Confidentiality
Customer understands that certain commercial and financial information contained
in this Letter Agreement is considered by Boeing as confidential and has value
precisely because it is not available generally 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.

SWA‑PA‑03729‑LA‑1301170
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Very truly yours,
THE BOEING COMPANY
By

/s/ Jeff Solomon
Its
     
       Attorney‑In‑Fact
ACCEPTED AND AGREED TO this
Date:
May 13 , 2013
SOUTHWEST AIRLINES CO.
By

/s/ Michael Van de Ven
Its
Executive Vice President

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