EXHIBIT 10.19

 

Confidential Treatment
Requested Pursuant to Rule 24b-2

 

Supplemental Agreement No. 4

 

to

 

Purchase Agreement No. PA-03659

 

between

 

The Boeing Company

 

and

 

Air Lease Corporation

 

This Supplemental Agreement is entered into as of January 30, 2015 (Supplemental
Agreement No. 4) by and between THE BOEING COMPANY (Boeing) and AIR LEASE
CORPORATION (Customer);

 

All terms used but not defined in this Supplemental Agreement No. 4 have the
same meaning as in the Purchase Agreement;

 

WHEREAS, Boeing and Customer have entered into Purchase Agreement No. PA-03659
dated as of October 31, 2011 (the Purchase Agreement) relating to the purchase
and sale of Model 787-9 aircraft and Model 787-10 aircraft;

 

WHEREAS, Boeing and Customer desire to amend the Purchase Agreement to [*].

 

[*]

 

WHEREAS, Boeing and Customer desire to amend the Purchase Agreement to identify
as the lessee for one (1) [*] Aircraft scheduled to deliver in June 2016 bearing
serial number and one (1) [*] Aircraft scheduled to deliver in [*] bearing
serial number [*].

 

WHEREAS, Boeing and Customer desire to amend the Purchase Agreement to identify
[*] as the lessee for one (1) [*] Aircraft scheduled to deliver in [*] bearing
serial number [*].

 

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

* Confidential material omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.

 

 

 

 

BOEING PROPRIETARY

i

 

 

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

 

 

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

 

1.            TABLE OF CONTENTS.

 

The Table of Contents of the Purchase Agreement is deleted in its entirety and
replaced by a new Table of Contents, provided as Enclosure 1 to this
Supplemental Agreement No. 4, which reflects the revisions set forth in this
Supplemental Agreement No. 4.

 

2.           TABLE 1.

 

a.Table 1A to Purchase Agreement No. PA-03659, 787-9 Block A Aircraft Delivery,
Description, Price and Advance Payments General Electric GEnx-1B74/75 Engines is
deleted in its entirety and replaced by Table 1A to Purchase Agreement
No. PA-03659, 787-9 Block A Aircraft Delivery, Description, Price and Advance
Payments General Electric GEnx-1B74/75 Engines, provided as Enclosure 2 to this
Supplemental Agreement No. 4 and hereby incorporated into the Purchase
Agreement.  [*]

 

b.Table 1A to Purchase Agreement No. PA-03659, 787-9 Block A Aircraft Delivery,
Description, Price and Advance Payments Trent 1000-J Engines is deleted in its
entirety and replaced by Table 1A to Purchase Agreement No. PA-03659, 787-9
Block A Aircraft Delivery, Description, Price and Advance Payments Trent 1000-J
Engines, provided as Enclosure 3 to this Supplemental Agreement No. 4 and hereby
incorporated into the Purchase Agreement.  [*]

 

c.Table 1B to Purchase Agreement No. PA-03659, 787-9 Block B Aircraft Delivery,
Description, Price and Advance Payments General Electric GEnx-1B74/75 Engines is
deleted in its entirety and replaced by Table 1B to Purchase Agreement
No. PA-03659, 787-9 Block B Aircraft Delivery, Description, Price and Advance
Payments General Electric GEnx-1B74/75 Engines, provided as Enclosure 4 to this
Supplemental Agreement No. 4 and hereby incorporated into the Purchase
Agreement.  [*]

 

d.Table 1B to Purchase Agreement No. PA-03659, 787-9 Block B Aircraft Delivery,
Description, Price and Advance Payments Trent 1000-J Engines is deleted in its
entirety and replaced by Table 1B to Purchase Agreement No. PA-03659, 787-9
Block B Aircraft Delivery, Description, Price and Advance Payments Trent 1000-J
Engines, provided as Enclosure 5 to this Supplemental Agreement No. 4 and hereby
incorporated into the Purchase Agreement.  [*]

 

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

* Confidential material omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.

 

 

 

BOEING PROPRIETARY

ii

 

 

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

 

 

3.            SUPPLEMENTAL EXHIBITS

 

a.Supplemental Exhibit BFE1 to Purchase Agreement Number PA-03659 is deleted in
its entirety and replaced by a revised Supplemental Exhibit BFE1 to Purchase
Agreement Number PA-03659, provided as Enclosure 6 to this Supplemental
Agreement No. 4, which reflects the acceleration of the Accelerated Aircraft;

 

4.           LETTER AGREEMENTS.

 

a.Letter Agreement LA-1104720R1, Advance Payment Matters, is deleted in its
entirety and replaced by a revised Letter Agreement LA-1104720R2, Advance
Payment Matters, provided as Enclosure 7 to this Supplemental Agreement No. 4,
[*].

 

b.Letter Agreement LA-1104730R1, Model 787 Open Configuration Matters, is
deleted in its entirety and replaced by a revised Letter Agreement LA-1104730R2,
Model 787 Open Configuration Matters, provided as Enclosure 8 to this
Supplemental Agreement No. 4, [*].

 

5.           Expiration.

 

a.Unless expressly withdrawn, this Supplemental Agreement No. 4 will expire on
January 30, 2015, if not executed by such date.

 

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

 

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

 

THE BOEING COMPANY

 

AIR LEASE CORPORATION

 

 

 

BY:

/s/ Jon Lewis

 

BY:

/s/ Grant Levy

 

 

 

 

 

ITS:

Attorney-In-Fact

 

ITS:

Executive Vice President

 

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

* Confidential material omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.

 

 

 

 

BOEING PROPRIETARY

iii

 

 

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

 

Enclosure 1

 

PURCHASE AGREEMENT NUMBER PA-03659

 

Between

 

THE BOEING COMPANY

 

and

 

Air Lease Corporation

 

Relating to Boeing Model 787-9 and 787-10 Aircraft

 

 

 

 

 

 

 

BOEING PROPRIETARY

PA Page 1

 

 

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

 

Enclosure 1

 

TABLE OF CONTENTS

 

 

 

 

 

 

ARTICLES

    

 

    

 

 

 

 

 

 

Article 1.

 

Quantity, Model, Description and Inspection

 

SA-2

Article 2.

 

Delivery Schedule

 

SA-2

Article 3.

 

Price

 

SA-2

Article 4.

 

Payment

 

SA-2

Article 5.

 

Additional Terms

 

SA-2

 

 

 

 

 

TABLE

 

 

 

 

 

 

 

 

 

IA.

 

787-9 Block A Aircraft Information Table

 

SA-4

IB.

 

787-9 Block B Aircraft Information Table

 

SA-4

IC.

 

787-10 Block A Aircraft Information Table

 

SA-3

 

 

 

 

 

EXHIBIT

 

 

 

 

 

 

 

 

 

A.

 

Aircraft Configuration

 

SA-2

B.

 

Aircraft Delivery Requirements and Responsibilities

 

SA-2

 

 

 

 

 

SUPPLEMENTAL EXHIBITS

 

 

 

 

 

 

 

AE1.

 

Escalation Adjustment Airframe and Optional Features

 

SA-2

BFE1.

 

BFE Variables

 

SA-4

CS1.

 

Customer Support Document

 

SA-2

EE1.

 

[*], Engine Warranty and Patent Indemnity - General Electric Engines

 

SA-2

EE1.

 

[*], Engine Warranty and Patent Indemnity — Rolls Royce Engines

 

SA-2

SLP1.

 

Service Life Policy Components

 

SA-2

 

 

 

 

 

LETTER AGREEMENTS

 

 

 

 

 

 

 

LA-1104716R1

 

[*]

 

SA-2

LA-1104717R1

 

Demonstration Flight Waiver

 

SA-2

LA-1104718R1

 

[*]

 

SA-2

LA-1104719R1

 

Other Matters

 

SA-2

LA-1104720R2

 

Advance Payment Matters

 

SA-4

LA-1104721R1

 

[*]

 

SA-2

 

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

* Confidential material omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.

 

 

 

 

 

 

BOEING PROPRIETARY

PA Page 2

 

 

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

 

Enclosure 1

 

 

 

 

 

 

LA-1104722R1

    

Assignment of Customer’s Interest to a Subsidiary or Affiliate

    

SA-2

LA-1104724

 

e-Enabling Software Matters

 

 

LA-1104725R1

 

[*]

 

SA-2

LA-1104726R1

 

Special Matters relating to COTS Software and End User License Agreements

 

SA-2

LA-1104727R2

 

AGTA Matters

 

SA-2

LA-1104728R1

 

Leasing Matters for 787 Aircraft

 

SA-2

LA-1104729R1

 

Liquidated Damages - Non-Excusable Delay

 

SA-2

LA-1104730R2

 

Open Configuration Matters

 

SA-4

LA-1104731R1

 

Performance Guarantees-787-9 Block A Aircraft

 

SA-2

LA-1104733R1

 

Special Terms - Seats and In-flight Entertainment

 

SA-2

LA-1104734R1

 

Special Matters - 787-9 Block A Aircraft

 

SA-2

LA-1300863

 

Performance Guarantees - 787-10 Block A Aircraft

 

SA-2

LA-1300864

 

Performance Guarantees - 787-9 Block B Aircraft

 

SA-2

LA-1301080

 

Special Matters - 787-9 Block B Aircraft

 

SA-2

LA-1301081

 

Special Matters - 787-10 Block A Aircraft

 

SA-2

LA-1301082

 

[*]

 

SA-2

LA-1301083

 

Promotional Support - 787-10 Aircraft

 

SA-2

LA-1301084

 

[*]

 

SA-2

LA-1302043

 

[*]

 

SA-2

LA-1302348R1

 

[*]

 

SA-2

 

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

* Confidential material omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.

 

 

 

 

 

 

BOEING PROPRIETARY

PA Page 3

 

 

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

 

Enclosure 2

 

Table 1A To

Purchase Agreement No. PA-03659

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

General Electric GEnx-1B74/75 Engines

 

Airframe Model/MTOW:

    

787-9

    

545,000 pounds

    

Detail Specification:

    

787B1‑4102‑D
(4/27/2011)

    

                              

 

 

 

 

 

 

 

 

 

 

 

 

 

Engine Model/Thrust:

 

GENX‑1B74/75

 

74,100 pounds

 

Airframe Price Base Year/Esc. Formula:

 

[*]

 

[*]

 

 

 

 

 

 

 

 

 

 

 

 

 

Airframe Price:

 

 

 

[*]

 

Engine Price Base Year/Esc. 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) Est.:

 

 

 

[*]

 

Engine Escalation Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Seller Purchased Equipment (SPE) Est.:

 

 

 

[*]

 

Base Year Index (ECI):

 

[*]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In Flight Entertainment (IFE) Est:

 

 

 

[*]

 

Base Year Index (CPI):

 

[*]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit per Aircraft:

 

 

 

[*]

 

 

 

 

 

 

 

 

 

 

Escalation

Escalation

Manufacturer’s

 

Escalation Estimate

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

Delivery

Number of

Factor

Factor

Serial

 

Adv Payment Base

[*]

[*]

[*]

[*]

Date

Aircraft

(Airframe)

(Engine)

Number

Lessee

Price Per A/P

[*]

[*]

[*]

[*]

[*]-2016

1

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

1

[*]

[*]

[*]

 

[*]

[*]

[*]

[*]

[*]

[*]

1

[*]

[*]

[*]

 

[*]

[*]

[*]

[*]

[*]

[*]-2019*

1

[*]

[*]

[*]

 

[*]

[*]

[*]

[*]

[*]

 

 

 

 

 

 

 

 

 

 

 

Total:

4

 

 

 

 

 

 

 

 

 

 

[*]

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

* Confidential material omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.

 

 

 

 

 

 

Boeing Proprietary

Page 1

 

 

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

 

Enclosure 3

 

Table 1A To

Purchase Agreement No. PA-03659

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

Rolls Royce Trent 1000J Engines

 

 

 

 

 

 

 

 

 

 

 

 

 

Airframe Model/MTOW:

    

787‑9

    

545,000 pounds

    

Detail Specification:

    

787B1‑4102‑D
(4/27/2011)

    

                              

 

 

 

 

 

 

 

 

 

 

 

 

 

Engine Model/Thrust:

 

TRENT1000‑J

 

73,800 pounds

 

Airframe Price Base Year/Esc. Formula:

 

[*]

 

[*]

 

 

 

 

 

 

 

 

 

 

 

 

 

Airframe Price:

 

 

 

[*]

 

Engine Price Base Year/Esc. 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) Est.:

 

 

 

[*]

 

Engine Escalation Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Seller Purchased Equipment (SPE) Est.:

 

 

 

[*]

 

Base Year Index (ECI):

 

[*]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In Flight Entertainment (IFE) Est:

 

 

 

[*]

 

Base Year Index (CPI):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit per Aircraft:

 

 

 

[*]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Escalation

Escalation

Manufacturer’s

 

Escalation Estimate

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

Delivery

Number of

Factor

Factor

Serial

 

Adv Payment Base

[*]

[*]

[*]

[*]

Date

Aircraft

(Airframe)

(Engine)

Number

Lessee

Price Per A/P

[*]

[*]

[*]

[*]

[*]-2016

1

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

1

[*]

[*]

[*]

 

[*]

[*]

[*]

[*]

[*]

[*]

1

[*]

[*]

[*]

 

[*]

[*]

[*]

[*]

[*]

[*]-2019*

1

[*]

[*]

[*]

 

[*]

[*]

[*]

[*]

[*]

Total:

4

 

 

 

 

 

 

 

 

 

 

[*]

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

* Confidential material omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.

 

 

 

 

 

 

Boeing Proprietary

Page 2

 

 

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

 

Enclosure 4

 

Table 1B To

Purchase Agreement No. PA-03659

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

General Electric GEnx-1B74/75 Engines

 

 

 

 

 

 

 

 

 

 

 

 

 

Airframe Model/MTOW:

    

787‑9

    

553,000 pounds

    

Detail Specification:

    

787B1-4102-J
(5/17/2013)

    

                              

 

 

 

 

 

 

 

 

 

 

 

 

 

Engine Model/Thrust:

 

GENX‑1B74/75

 

74,100 pounds

 

Airframe Price Base Year/Esc. Formula:

 

[*]

 

[*]

 

 

 

 

 

 

 

 

 

 

 

 

 

Airframe Price:

 

 

 

[*]

 

Engine Price Base Year/Esc. 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) Est.:

 

 

 

[*]

 

Engine Escalation Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Seller Purchased Equipment (SPE) Est.:

 

 

 

[*]

 

Base Year Index (ECI):

 

[*]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In Flight Entertainment (IFE) Est:

 

 

 

[*]

 

Base Year Index (CPI):

 

[*]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit per Aircraft:

 

 

 

[*]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Escalation

Escalation

Manufacturer’s

 

Escalation Estimate

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

Delivery

Number of

Factor

Factor

Serial

 

Adv Payment Base

[*]

[*]

[*]

[*]

Date

Aircraft

(Airframe)

(Engine)

Number

Lessee

Price Per A/P

[*]

[*]

[*]

[*]

[*]-2016

1

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

1

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

 

[*]

[*]

[*]

 

[*]

[*]

[*]

[*]

[*]

[*]

1

[*]

[*]

[*]

 

[*]

[*]

[*]

[*]

[*]

[*]-2020

 

[*]

[*]

[*]

 

[*]

[*]

[*]

[*]

[*]

 

 

 

 

 

 

 

 

 

 

 

Total:

3

 

 

 

 

 

 

 

 

 

 

[*]

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

* Confidential material omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.

 

 

 

 

 

Boeing Proprietary

Page 1

 

 

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

 

Enclosure 5

 

Table 1B To

Purchase Agreement No. PA-03659

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

Rolls Royce Trent 1000J Engines

 

 

 

 

 

 

 

 

 

 

 

 

 

Airframe Model/MTOW:

    

787‑9

    

553,000 pounds

    

Detail Specification:

    

787B1‑4102‑J
(5/17/2013)

    

                              

 

 

 

 

 

 

 

 

 

 

 

 

 

Engine Model/Thrust:

 

Trent1000J

 

74,400 pounds

 

Airframe Price Base Year/Esc. Formula:

 

[*]

 

[*]

 

 

 

 

 

 

 

 

 

 

 

 

 

Airframe Price:

 

 

 

[*]

 

Engine Price Base Year/Esc. 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) Est.:

 

 

 

[*]

 

Engine Escalation Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Seller Purchased Equipment (SPE) Est.:

 

 

 

[*]

 

Base Year Index (ECI):

 

[*]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In Flight Entertainment (IFE) Est:

 

 

 

[*]

 

Base Year Index (CPI):

 

[*]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit per Aircraft:

 

 

 

[*]

 

 

 

 

 

 

 

 

 

 

Escalation

Escalation

Manufacturer’s

 

Escalation Estimate

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

Delivery

Number of

Factor

Factor

Serial

 

Adv Payment Base

[*]

[*]

[*]

[*]

Date

Aircraft

(Airframe)

(Engine)

Number

Lessee

Price Per A/P

[*]

[*]

[*]

[*]

[*]-2016

1

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

1

[*]

[*]

 

[*]

[*]

[*]

[*]

[*]

[*]

[*]

 

[*]

[*]

[*]

 

[*]

[*]

[*]

[*]

[*]

[*]

1

[*]

[*]

[*]

 

[*]

[*]

[*]

[*]

[*]

[*]-2020

 

[*]

[*]

[*]

 

[*]

[*]

[*]

[*]

[*]

 

 

 

 

 

 

 

 

 

 

 

Total:

3

 

 

 

 

 

 

 

 

 

 

[*]

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

* Confidential material omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.

 

 

 

 

 

Boeing Proprietary

Page 2

 

 

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

 

Enclosure 6

 

BUYER FURNISHED EQUIPMENT VARIABLES

 

between

 

THE BOEING COMPANY

 

and

 

AIR LEASE CORPORATION

 

Supplemental Exhibit BFE1

 

to Purchase Agreement Number 03659

 

 

 

 

BOEING PROPRIETARY

BFE1 Page 1

 

 

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Enclosure 6

 

BUYER FURNISHED EQUIPMENT VARIABLES

 

relating to

 

BOEING MODEL 787-9 and 787-10 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 model/part of the following BFE
items by the first day of the following months:

 

 

 

 

Item

    

Number of months prior to the first day
of the scheduled month of delivery

Premium Seats with Design for Manufacturing and Assembly (DFMA) required (and
IFE Supplier)

 

[*]

Premium Seats that meet the seat program requirements and in-sequence
installation requirements of Boeing document D6-83347

 

[*]

Bar Units

 

[*]

Galley Carts

 

[*]

Life Vests

 

[*]

Upholstery

 

[*]

 

Identification of the suppliers and model/parts for the above items for the
Accelerated Aircraft (as defined in letter agreement HAZ-PA-03659-LA-1104730),
are subject to the terms set forth in Article 2.3 of letter agreement
HAZ-PA-03659-LA-1104730.  Notwithstanding the above table, such suppliers and
model/parts for the [*] shall be identified by [*].

 

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* Confidential material omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.

 

 

BOEING PROPRIETARY

BFE1 Page 2

 

 

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Enclosure 6

 

2.           On-dock Dates and Other Information.

 

On or before February 2015, Boeing will provide to  Customer BFE requirements,
electronically in My Boeing Fleet (MBF) through My Boeing Configuration (MBC) or
by other means, setting forth the items, quantities, technical reviews, on-dock
dates, shipping instructions and other requirements relating to the in-sequence
installation of BFE.  These requirements may be periodically revised by
Boeing.    Customer and Boeing rights and obligations related to the BFE
requirements established in this Supplemental Exhibit BFE1 are set forth in
Exhibit A to the AGTA.   For planning purposes, the first Aircraft preliminary
BFE seat requirements and preliminary on-dock dates for all BFE items are set
forth below.

 

The below “Completion Date” represents the first day of the month by which the
specific milestone must be completed to support a BFE seat program.

 

Customer’s Code 1 Introduction Aircraft: BFE Seat Program Milestones (Code 1
Introduction Aircraft Delivery Only)

 

 

 

 

Milestone

    

Completion Date

Initial Technical Coordination Meeting (ITCM)

 

[*]

Preliminary Design Review (PDR)

 

[*]

Critical Design Review (CDR)

 

[*]

Final Seat Review (FSR)

 

[*]

Inspection

 

[*]

Premium Seat On-Dock Date for Code 1 Introduction Aircraft delivery

 

[*]

 

*  Customer and Boeing will mutually agree upon a firm date for the ITCM for the
[*].

 

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* Confidential material omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.

 

 

 

 

BOEING PROPRIETARY

BFE1 Page 3

 

 

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Enclosure 6

 

** Will be determined at the ITCM for the respective Code 1 Introduction
Aircraft.

 

 

 

 

BOEING PROPRIETARY

BFE1 Page 4

 

 

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Enclosure 6

 

Preliminary On-Dock and Customer Inspection Months

(Note: All requirements are set forth below.  If a month is listed, then the due
date is the
first day of the month.  If no date is listed, then there is no requirement.)

 

787-9 Aircraft:

 

 

 

 

 

 

 

 

For planning purposes, preliminary BFE on-dock dates:

Scheduled
Month/Year of
Delivery

Quantity

Premium Seats

Bar Units

Galley Carts

Life Vests

Upholstery

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

 

787-10 Aircraft:

 

For planning purposes, preliminary BFE on-dock dates:

Scheduled
Month/Year of
Delivery

Quantity

Premium Seats

Bar Units

Galley Carts

Life Vests

Upholstery

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

 

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* Confidential material omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.

 

 

 

 

BOEING PROPRIETARY

BFE1 Page 5

 

 

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Enclosure 6

 

2.           Additional Delivery Requirements - Import.

 

Customer will be the “importer of record” (as defined by the U.S. Customs and
Border Protection) for all BFE imported into the United States, and as such, it
has the responsibility to ensure all of Customer’s BFE shipments comply with
U.S. Customs Service regulations.  In the event Customer requests Boeing, in
writing, to act as importer of record for Customer’s BFE, and Boeing agrees to
such request,  Customer is responsible for ensuring Boeing can comply with all
U.S. Customs Import Regulations by making certain that, at the time of shipment,
all BFE shipments comply with the requirements in the “International Shipment
Routing Instructions”, including the Customs Trade Partnership Against Terrorism
(C-TPAT), as set out on the Boeing website referenced below.  Customer agrees to
include the International Shipment Routing Instructions, including C-TPAT
requirements, in each contract between Customer and BFE supplier.

 

http://www.boeing.com/companyoffices/doingbiz/supplier_portal/index_general.html

 

 

 

BOEING PROPRIETARY

BFE1 Page 6

 

 

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Enclosure 7

 

Word_blacksmalllogo [al20160630ex1019ff292001.jpg]

 

 

 

 

The Boeing Company
P.O. Box 3707
Seattle, WA  98124‑2207

 

 

HAZ-PA-03659-LA-1104720R2

 

 

Air Lease Corporation

2000 Avenue of the Stars, Suite 1000N

Los Angeles, CA 90067

 

Subject:               Advance Payment Matters

 

Reference:           Purchase Agreement No. PA-03659 (Purchase Agreement)
between The Boeing Company (Boeing) and Air Lease Corporation (Customer)
relating to Model 787-9 and 787-10 aircraft (collectively, the Aircraft)

 

This letter agreement (Letter Agreement) cancels and supersedes Letter Agreement
HAZ-PA-03659-LA-1104720R1 and 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 HAZ-AGTA (AGTA)
between Boeing and Customer.  This Letter Agreement modifies certain terms and
conditions of the AGTA with respect to the Aircraft.

 

1.           Alternative Fixed Advance Payment Schedule.

 

1.1Notwithstanding the Aircraft advance payment schedule provided in Table 1 of
the Purchase Agreement Customer may elect to pay an alternative fixed advance
payment schedule for the respective Aircraft, as set forth in the table below
(Alternative Fixed Advance Payment Schedule).

 

1.2Alternative Fixed Advance Payment Schedule — 787-9 Block A Aircraft.

 

 

 

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

 

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* Confidential material omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.

 

 

BOEING PROPRIETARY

LA Page 1

 

 

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Enclosure 7

 

Picture 15 [al20160630ex1019ff292002.jpg]

 

 

1.3Alternative Fixed Advance Payment Schedule — 787-9 Block B Aircraft.

 

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

 

1.4Alternative Fixed Advance Payment Schedule — 787-10 Block A Aircraft.

 

 

 

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

 

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* Confidential material omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.

 

 

 

BOEING PROPRIETARY

LA Page 2

 

 

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Enclosure 7

 

Picture 16 [al20160630ex1019ff292002.jpg]

 

 

1.5[*]

 

2.[*]

 

3.[*]

 

4.[*]

 

5.Confidentiality.

 

Customer understands and agrees that the information contained herein represents
confidential business information of Boeing and has value precisely because it
is not available generally or to other parties.  Customer agrees to limit the
disclosure of its contents 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 5, without the prior written consent of Boeing and (c) any
auditors, financial advisors, attorneys and independent contractors 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 5.  Customer
shall be fully responsible to Boeing for compliance with such obligations.

 

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 taking title to the Aircraft at the time of delivery
and leasing the Aircraft and cannot be assigned in whole or, in part.

 

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.

 

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* Confidential material omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.

 

 

 

 

BOEING PROPRIETARY

LA Page 3

 

 

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Enclosure 7

 

Picture 17 [al20160630ex1019ff292002.jpg]

 

 

Very truly yours,

 

THE BOEING COMPANY

 

 

 

 

 

By

/s/ Jon Lewis

 

Its

Attorney-In-Fact

 

ACCEPTED AND AGREED TO this

 

Date:

January 30, 2015

 

AIR LEASE CORPORATION

 

By

/s/ Grant Levy

 

Its

Executive Vice President

 

 

 

 

BOEING PROPRIETARY

LA Page 4

 

 

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Enclosure 8

 

 

 

 

Word_blacksmalllogo [al20160630ex1019ff292001.jpg]

 

 

 

 

The Boeing Company
P.O. Box 3707
Seattle, WA  98124‑2207

 

 

HAZ-PA-03659-LA-1104730R2

 

 

Air Lease Corporation

2000 Avenue of the Stars, Suite 1000N

Los Angeles, CA 90067

 

Subject:                Model 787 Open Configuration Matters

 

Reference:           Purchase Agreement No. PA-03659 (Purchase Agreement)
between The Boeing Company (Boeing) and Air Lease Corporation (Customer)
relating to Model 787-9 and 787-10 aircraft (collectively, the Aircraft)

 

This letter agreement (Letter Agreement) cancels and supersedes Letter Agreement
HAZ-PA-03659-LA-1104730R1 and 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.Aircraft Configuration.

 

2.1Initial Configuration.  The initial configuration of Customer’s Model 787-9
Aircraft has been defined by Boeing Model 787 Airplane Configuration
Specification document 787B1-4102 Rev D, dated April 27, 2011 for the 787-9
Block A Aircraft, and Boeing Model 787 Airplane Configuration Specification
document 787B1-4102 Rev. J, dated May 17, 2013 for the 787-9 Block B
Aircraft.  The initial configuration for the 787-10 Block A Aircraft has been
defined by Boeing Model 787 Airplane Configuration Specification document
787B1-4102 Rev. J dated May 17, 2013, as supplemented by General Description
document 787B1-3806 Rev. E dated May 10, 2013.  Given the long period of time
between Purchase Agreement signing and delivery of the first Aircraft, the final
configuration of the Customer’s Aircraft has not yet been defined.

 

2.2Final Configuration Schedule.  Customer and Boeing hereby agree to complete
the configuration of the Aircraft using the then current Model 787 Airplane
Configuration Specification document and selections from the then current 787
Airplane Descriptions and Selections document (Final Configuration) in
accordance with the following schedule:

 

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* Confidential material omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.

 

 

BOEING PROPRIETARY

LA Page 1

 

 

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Enclosure 8

 

Picture 19 [al20160630ex1019ff292002.jpg]

 

 

2.2.1      Subject to the provisions of Article 2.2.2, below, Final
Configuration shall be completed no later than [*] prior to delivery of the
first Aircraft.

 

2.2.2      If Customer wishes to include installation of Customer’s BFE premium
class seats in the configuration of the Aircraft, Customer shall give written
notice to Boeing by the lead times identified in Supplemental Exhibit BFE1 to
the Purchase Agreement.

 

2.2.2.1   If requested by Customer, Boeing will provide a list of offerable BFE
premium seat suppliers and previously certified seat models to support
Customer’s selection in paragraph 2.2.2 above.

 

2.2.2.2   Should Customer elect to install a follow-on configuration that
includes BFE premium class seat in the configuration of the Aircraft that
(i) has been previously certified on another 787 aircraft or (ii) has minor
changes from a previous certified seat, Boeing agrees to work with Customer to
evaluate offerability of such seat program and to work towards reducing Boeing’s
charges for such seat program.

 

2.2.2.3   In the event, Customer’s timing to secure a lessee for the Aircraft
does not afford Customer the ability to comply with the BFE premium class seat
lead times set forth in Supplemental Exhibit BFE1 to the Purchase Agreement,
Boeing will make reasonable efforts to work with Customer to shorten the lead
times [*], based on the BFE premium class seat configuration (reference
paragraph 2.2.2.2 above) and Boeing’s then-current lead time criteria.  If
Boeing determines that a BFE Seat Selection Lead Time of less than thirty (30)
months before delivery is sufficient, Boeing will promptly notify Customer of
the reduced lead time and such notice will incorporate the new lead time
requirements into the Purchase Agreement.

 

2.2.2.4   Boeing agrees to maintain current offerings of premium seat suppliers
in the 787 Airplane Descriptions and Selections (AD&S) document. A premium seat
supplier in this paragraph 2.2.2.4 shall mean a supplier for a premium economy,
business / first class seat in the AD&S. To demonstrate this commitment, Boeing
will strive to maintain at least two (2) preferred premium class seats for each
offering (premium economy and business / first class seat) in the AD&S at all
times.  For purposes of this Purchase Agreement, a preferred premium class seat
(Preferred Premium Class Seat) is:

 

(i)

for an existing AD&S premium seat selection, a premium seat that, at the BFE
Seat Selection Time, has been purchased by another customer and is

 

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* Confidential material omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.

 

 

BOEING PROPRIETARY

LA Page 2

 

 

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Enclosure 8

 

Picture 20 [al20160630ex1019ff292002.jpg]

 

 

comparable to a premium seat selection that has been certified for in-sequence
production installation on modern twin-aisle aircraft available for delivery in
the same timeframe as Customer’s Aircraft; or

 

(ii)

for a relatively new offering by Boeing that has not been purchased by another
customer at the BFE Seat Selection Time, such premium seat will be considered a
Preferred Premium Class Seat if it is being actively evaluated in the
marketplace for 787 configurations and/or is comparable to a premium seat
selection that has been certified for in-sequence production installation on
modern twin-aisle aircraft available for delivery in the same timeframe as
Customer’s Aircraft.

 

The determination of a Preferred Premium Class Seat will be made by Boeing and
Customer working together in good faith. In the event Boeing and Customer
determine that Boeing does not have two Preferred Premium Class Seat selections
available at the BFE Seat Selection Time, but Customer elects to pursue a
premium seat solution which utilizes an existing catalog offering with
configuration changes from a previously certified seat, Customer will pay
Boeing’s charges for such seat program based upon Boeing’s level of effort
required to support the program. If Boeing does not have two Preferred Premium
Class Seat selections available at the BFE Seat Selection Time and Customer
elects to pursue a new BFE premium seat program, Boeing will agree to waive the
then-current AD&S option charge for a BFE premium seat installation. Boeing’s
commitment herein shall not exceed waiver of [*] BFE premium seat installation
option charges in total for the [*] Aircraft listed in Table 1 to the Purchase
Agreement.

 

2.3[*]

 

3.Amendment of the Purchase Agreement.

 

Within thirty (30) days following Final Configuration Boeing and Customer will
execute a written amendment to the Purchase Agreement which will reflect the
following:

 

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* Confidential material omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.

 

 

BOEING PROPRIETARY

LA Page 3

 

 

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Enclosure 8

 

Picture 21 [al20160630ex1019ff292002.jpg]

 

 

3.1changes applicable to the basic Model 787 aircraft which are developed by
Boeing between the date of signing of the Purchase Agreement and date of Final
Configuration (Baseline Changes);

 

3.2incorporation into Exhibit A of the Purchase Agreement of those optional
features which have been agreed to by Customer and Boeing (Customer
Configuration Changes).  [*]

 

3.3revisions to the Performance Guarantees to reflect the effects, if any, on
Aircraft performance of the incorporation of the Customer Configuration Changes;

 

3.4changes to the Optional Features Prices, Aircraft Basic Price and the Advance
Payment Base Price of the Aircraft to adjust for the difference, if any, between
the prices estimated in Table 1 of the Purchase Agreement for optional features
reflected in the Aircraft Basic Price and the actual prices of the optional
features reflected in the Customer Configuration Changes; and

 

3.5changes to the Advance Payment Base Price of the Aircraft to adjust for the
difference between the estimated amount included in Table 1 of the Purchase
Agreement for In-Flight Entertainment (IFE) and the price of the IFE reflected
in the Customer Configuration Changes.

 

4.Other Letter Agreements.

 

Boeing and Customer acknowledge that as the definition of the Aircraft
progresses, there may be a need to execute letter agreements addressing one or
more of the following subjects:

 

4.1Software.  Additional provisions relating to software.

 

4.2In-Flight Entertainment (IFE) and/or Buyer Furnished Equipment (BFE). 
Provisions relating to the terms under which Boeing may offer or install IFE
and/or BFE in the Aircraft.

 

[Signature page follows.]

 

[Remainder of page intentionally left blank.]

 

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* Confidential material omitted and filed separately with the Securities and
Exchange Commission pursuant to a request for confidential treatment.

 

 

 

BOEING PROPRIETARY

LA Page 4

 

 

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Enclosure 8

 

Picture 22 [al20160630ex1019ff292002.jpg]

 

 

5.Confidential Treatment.

 

Customer understands and agrees that the information contained herein represents
confidential business information of Boeing and has value precisely because it
is not available generally or to other parties.  Customer agrees to limit the
disclosure of its contents 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 5), without the prior written consent of Boeing and (c) any
auditors, financial advisors, attorneys and independent contractors 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 5.  Customer
shall be fully responsible to Boeing for compliance with such obligations.

 

Very truly yours,

 

 

 

THE BOEING COMPANY

 

By

/s/ Jon Lewis

 

Its

Attorney-In-Fact

 

ACCEPTED AND AGREED TO this

 

Date:

January 30, 2015

 

AIR LEASE CORPORATION

 

By

/s/ Grant Levy

 

Its

Executive Vice President

 

 

BOEING PROPRIETARY

LA Page 5

 

 

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