Supplemental Agreement No. 6
 
to
 
Purchase Agreement No. 03729
 
between
 
THE BOEING COMPANY
 
and
 
SOUTHWEST AIRLINES CO.
 
Relating to Boeing Model 737-8 and 737-7 Aircraft

THIS SUPPLEMENTAL AGREEMENT No. 6 (SA-6), entered into as of July 21, 2017, is
made between THE BOEING COMPANY, a Delaware corporation (Boeing), and SOUTHWEST
AIRLINES CO., a Texas corporation (Customer).
RECITALS:

WHEREAS, 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 (737-8 Aircraft) and
Model 737-7 aircraft (737-7 Aircraft); collectively the “Aircraft”. This SA‑6 is
an amendment to and is incorporated into the Purchase Agreement. Capitalized
terms used herein but not otherwise defined shall have the meaning set forth in
the Purchase Agreement.
Whereas, Boeing and Customer agree to amend the Purchase Agreement to document
Customer’s substitution of four (4) Model 737-800 Option Aircraft (737-800
Substitution Option Aircraft) to four (4) Model 737-8 Option Aircraft (737-8
Substitution Option Aircraft), pursuant to the terms of SA-103 to Purchase
Agreement No. 1810 between Customer and Boeing (SA-103).
Whereas, Boeing and Customer agree to amend the Purchase Agreement to include
*** the first four (4) Boeing Model 737-8 Option Aircraft to be executed ***

WHEREAS, Boeing and Customer agree to amend the Purchase Agreement to
incorporate the Service Ready Validation Program agreement.

NOW, THEREFORE, the parties agree that the Purchase Agreement is amended as set
forth below and otherwise agree as follows:

***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-6
 
BOEING PROPRIETARY

 

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

 
 
 

1.
TABLE OF CONTENTS.

The Table of Contents of the Purchase Agreement is deleted in its entirety and
replaced with a new Table of Contents (attached), which lists Letter Agreements
revised by this SA‑6 and identified by “SA‑6”. Such revised Table of Contents is
incorporated into the Purchase Agreement by this reference.

2.
LETTER AGREEMENTS

2.1
Attachment 1 to Letter Agreement SWA-PA-03729-LA-1106474R1, Option Aircraft, is
deleted in its entirety and replaced by a new Attachment 1 (attached). The new
Attachment 1 reflects the addition of four (4) Boeing Model 737-8 Option
Aircraft.

2.2
Letter Agreement SWA‑PA‑03729‑LA‑1106475R1, ***, is deleted in its entirety and
replaced with the attached revised Letter Agreement ‑PA‑03729‑LA‑1106475R2,
which reflects the addition of the ***

2.3
Letter Agreement SWA-PA-03729-LA-1503792, Service Ready Operational Validation,
is added to the Purchase Agreement.

2.4
Letter Agreement SWA-PA-03729-LA-1301168R2, *** , is deleted in its entirety and
replaced with the attached revised Letter Agreement SWA-PA-03729-LA-1301168R3

3. ***

SWA-PA-03729

2
SA-6
 
BOEING PROPRIETARY

 

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

 
 
 

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

EXECUTED IN DUPLICATE as of the day and year first above written.
 
THE BOEING COMPANY
SOUTHWEST AIRLINES CO.
 
 
By: /s/ Kyle Kersavage
By: /s/ Chris Monroe
 
Chris Monroe

Its: Attorney-In-Fact 
Its: SVP, Finance

SWA-PA-03729

3
SA-6
 
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-5
 
 
 
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-LA-1106464*
***

SWA-PA-03729
 
SA-6
 
BOEING PROPRIETARY
Page 1

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

LETTER AGREEMENTS
TITLES
 
 
 
 
SWA-PA-03729-LA-1106465*
***
 
 
SWA-PA-03729-LA-1106466
***
 
 
 
SWA-PA-03729-LA-1106467R1
***
SA-5
 
 
 
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-1106473R1
***
SA-5
 
 
 
SWA-PA-03729-LA-1106474R1
Option Aircraft
SA-5
 
Attachment 1
SA-6
 
 
 
SWA-PA-03729-LA-1106475R1
***
SA-6
 
 
 
SWA-PA-03729-LA-1106476R1*
***
SA-5
 
 
 
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-LA-1209080
***
SA-1
 
 
 
SWA-PA-03729-LA-1210419
***
SA-1

SWA-PA-03729
 
SA-6
 
BOEING PROPRIETARY
Page 2

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

LETTER AGREEMENTS
TITLES
 
 
 
 
SWA-PA-03729-LA-1300943
***
SA-2
 
 
 
SWA-PA-03729-LA-1301168R3

***
SA-6
 
 
 
SWA-PA-03729-LA-1301170R1

***
SA-5
 
 
 
SWA-PA-03729-LA-1503792

Service Ready Operational Validation
SA-6
 
 
 
SWA‑PA‑03729‑LA‑1602486
***
SA-5

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

SWA-PA-03729
 
SA-6
 
BOEING PROPRIETARY
Page 3

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

INACTIVE / DELETED TABLES, EXHIBITS, AND LETTER AGREEMENTS

RESTRICTED LETTER AGREEMENTS

Letter Agreement
Title
Last Updated under SA
Current Status
SWA-PA-03729-LA-1106472R1
***
SA-2
Deleted under SA-4
SWA-PA-01810/03729-LA-1301169
***
SA-2
Deleted under SA-4

SWA-PA-03729
 
SA-6
 
BOEING PROPRIETARY
Page 4

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

 
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)
 
 
2Q11 External Fcst
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) Estimate:
 
***
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Refundable Deposit/Aircraft at Def Agreemt:
 
***
 
 
 
 
 
 
 

Delivery

Date*

Number of

Aircraft
Escalation

Factor

(Airframe)
Option

Exercise Date

Deadline

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

***
Jul-2019
2
***
      ***
 
***
***
***
***
            ***
Sep-2019
1
***
      ***
 
***
***
***
***
            ***
Oct-2019
2
***
      ***
 
***
***
***
***
            ***
Apr-2020
1
***
      ***
 
***
***
***
***
            ***
Jun-2020
1
***
      ***
 
***
***
***
***
            ***
Jul-2020
2
***
      ***
 
***
***
***
***
            ***
Aug-2020
2
***
      ***
 
***
***
***
***
            ***
Sep-2020
2
***
      ***
 
***
***
***
***
            ***
Jan-2021
1
***
      ***
D
***
***
***
***
            ***
Jan-2021
1
***
      ***
 
***
***
***
***
            ***
Feb-2021
1
***
      ***
D
***
***
***
***
            ***
Mar-2021
1
***
      ***
 
***
***
***
***
            ***

 
 
SA-6
SWA-PA-03729-LA1106474 58960-1O.TXT
Boeing Proprietary
Page 1

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

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

Delivery

Date*

Number of

Aircraft
Escalation

Factor

(Airframe)
Option

Exercise Date

Deadline

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

***
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
2
***
***
 
***
***
***
***
***
Oct-2021
1
***
***
D
***
***
***
***
***
Oct-2021
2
***
***
 
***
***
***
***
***
Nov-2021
1
***
***
D
***
***
***
***
***
Dec-2021
1
***
***
 
***
***
***
***
***
Jan-2022
1
***
***
D
***
***
***
***
***
Jan-2022
2
***
***
 
***
***
***
***
***
Feb-2022
1
***
***
D
***
***
***
***
***
Feb-2022
2
***
***
 
***
***
***
***
***
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
***
***
***
***
***

 
 
SA-6
SWA-PA-03729-LA1106474 58960-1O.TXT
Boeing Proprietary
Page 2

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

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

Delivery

Date*

Number of

Aircraft
Escalation

Factor

(Airframe)
Option

Exercise Date

Deadline

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-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
***
***
***
***
***
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
***
***
***
***
***

 
 
SA-6
SWA-PA-03729-LA1106474 58960-1O.TXT
Boeing Proprietary
Page 3

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

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

Delivery

Date*

Number of

Aircraft
Escalation

Factor

(Airframe)
Option

Exercise Date

Deadline

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-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
***
***
 
***
***
***
***
***
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
***
***
***
***
***

 
 
SA-6
SWA-PA-03729-LA1106474 58960-1O.TXT
Boeing Proprietary
Page 4

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

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

Delivery

Date*

Number of

Aircraft
Escalation

Factor

(Airframe)
Option

Exercise Date

Deadline

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-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
***
***
 
***
***
***
***
***
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
***
***
 
***
***
***
***
***

 
 
SA-6
SWA-PA-03729-LA1106474 58960-1O.TXT
Boeing Proprietary
Page 5

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

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

Delivery

Date*

Number of

Aircraft
Escalation

Factor

(Airframe)
Option

Exercise Date

Deadline

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-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
2
***
***
 
***
***
***
***
***
Total:
195
 
 
 
 
 
 
 
 

* ***

 
 
SA-6
SWA-PA-03729-LA1106474 58960-1O.TXT
Boeing Proprietary
Page 6

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

boeinga02.jpg [boeinga02.jpg]
 
The Boeing Company
 
P. O. Box 3707
 
Seattle, WA 98124-2207
 
 

SWA‑PA‑03729‑LA‑1106475R2

Southwest Airlines Co.
2707 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235

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 Model 737-7 aircraft
 
 
 
2) Letter Agreement SWA‑PA‑03729‑LA-1106474 entitled “Option Aircraft” (Option
Aircraft 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.    ***

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2.    ***

3.    Assignment.
Unless otherwise noted herein, *** to Customer and in consideration of
Customer’s taking title to the Option Aircraft at time of delivery and becoming
the operator of the Option Aircraft. This Letter Agreement cannot be assigned,
in whole or in part, without the prior written consent of Boeing.

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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.
Very truly yours,
THE BOEING COMPANY
 
 
By
/s/ Kyle Kersavage
Its
     Attorney‑In‑Fact
 
 
 
ACCEPTED AND AGREED TO this
 
 
Date:
July 21, 2017
 
SOUTHWEST AIRLINES CO.
 
 
By
/s/ Chris Monroe
 
Chris Monroe
Its
SVP, Finance

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SWA-PA-03729-LA-1503792
Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611

Subject:
Service Ready Operational Validation

 
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-1106469R1, ***

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

1.Service Ready Operational Validation.

In order to ensure that the Aircraft is ready for entry into service upon
delivery, Boeing and Customer will implement a service ready operational
validation program (SROV) which will aid in validating the combination of the
Aircraft, support products and services as well as Customer’s own preparation
for entry into service. The SROV will use *** to accomplish the validation.

2.    Validation Planning and Execution.

2.1    The SROV Plan will be carried out over the course of five (5) or fewer
calendar days and simulate in-service operations.

2.2    The primary objectives of the SROV include validation in the following
areas:(i) normal flight operations, (ii) limited non-normal flight operations,
(iii) routine maintenance activities, (iv) select non-routine maintenance
activities, (v) airplane connectivity options both on-ground and in-flight
utilizing Customer’s IT infrastructure, (vi) typical aircraft operations (e.g.
servicing, cargo operations), and (vii) aircraft support products (e.g. flight
data, maintenance data, parts data and ground support equipment/tooling).

2.2.1    SROV planning documentation will describe SROV conditions and
activities (SROV Plan). Boeing and Customer will jointly develop the SROV Plan
in accordance with the following outline and constraints, to represent
in-service operation.

 
 
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***

2.2.2    Prior to the start date of the SROV, a Boeing SROV project leader (SROV
Project Lead) will be the primary point of contact for communication and
coordination between Customer and Boeing relating to the SROV Plan. After the
SROV begins, a Boeing test director (Boeing Test Director) will direct the SROV
Plan and will serve as the primary contact for Customer to discuss any matters
relating to the SROV.

2.2.3    After the SROV begins, Customer will coordinate with the Boeing Test
Director regarding any suggested changes to the SROV Plan or additional
validation conditions, examples of which are listed below. Inclusion of such
additional validation conditions will be at the discretion of the Boeing Test
Director. If Boeing desires to make any changes to the SROV Plan, then Boeing
will coordinate such changes with Customer’s designated representative.

a)
Non-routine activities - flaps-15 landing, simulated removal and replacement of
an LRU or other “one-off” or contingency scenarios related to normal operations.

b)
Routine activities with intervals longer than the SROV execution duration -
“A-check equivalent” maintenance activity or demonstration of new (i) ground
support equipment (GSE) or (ii) maintenance procedures.

c)
Airline-specific scenarios - passenger-related preparations that depend on
aircraft/airlines systems or procedures to be successful.

3.    Operation of the SROV Aircraft.

3.1    ***

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3.2    ***

3.3    Customer's Participation in the SROV.

3.3.1    Customer will submit to Boeing a list of personnel who may participate
in flight activities as Essential Crew under the conditions of 3.2 above,
including a description of each person’s proposed role.

3.3.2    All Customer Essential Crew scheduled to participate in a given
validation block will be required to attend a mandatory preflight briefing
scheduled by the Boeing Test Director which will be conducted prior to each
validation block.

3.3.3    Customer will assist Boeing with any emergency arrangements or
contingency arrangements in the event of incident or damage to the SROV Aircraft
or other difficulties.

3.3.4    Customer will appropriately familiarize Boeing personnel with
Customer's operations and procedures, at no charge to Boeing (including but not
limited to Boeing flight crew and maintenance personnel).

3.4    Maintenance of the SROV Aircraft.

3.4.1    ***

3.4.2    Records.

Boeing records will be the only official documentation of the SROV Aircraft.

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3.4.3    Fuel and Other Goods and Services.

3.4.3.1    Customer and Boeing will work together to ensure that appropriate
landing slots, gates and other operational requirements and services are
arranged in advance at all airports where the SROV Aircraft will land. Where
Customer's established relationships and on‑site personnel and resources will
enable Customer to make more advantageous arrangements, Customer will, upon
Boeing request, make necessary arrangements on Boeing's behalf or will assist
Boeing in making such arrangements, as appropriate.

3.4.3.2****

3.4.3.3****

Boeing Commercial Airplane Group
P.O. Box 3707, Mail Stop T
Seattle, Washington 98124‑2207
Attention:    TBD
Flight Test
Supporting Services
Telephone: (206) TBD
Facsimile: (206) TBD

3.4.3.3 ***

4.     ***

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5.    Realization of Additional Objectives during SROV.

The primary objectives of the SROV are described in Paragraph 2.1 above. Other
objectives are secondary, and may be pursued when, in Boeing's and Customer’s
reasonable judgment, such secondary objective will not: (i) interfere with nor
jeopardize the primary objectives, (ii) lengthen the SROV schedule or (iii) ***

***

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6.    Contingencies.

6.1    SROV Aircraft Airworthiness Certification.

Boeing shall make reasonable and timely efforts to obtain an experimental
airworthiness certificate or make other arrangements for airworthiness
certification of the SROV Aircraft in order to conduct the SROV Plan. In the
event that Boeing is not successful in obtaining the necessary airworthiness
certification and cannot make alternate arrangements in support of the SROV
Plan, Boeing and Customer will mutually agree to revisions to the SROV Plan to
facilitate such airworthiness certification of the SROV Aircraft. If Boeing and
Customer (i) cannot agree on such revisions to the SROV Plan or (ii) Boeing is
unable to obtain an airworthiness certification of the SROV Aircraft, then
Boeing may cancel any part or all of the SROV.

6.2    Boeing Type Certificate Flight Testing.

Boeing will make every reasonable effort to ensure the SROV Aircraft is no
longer required to support 737-8 type certification during the SROV period.
However, in the event that unplanned type certification testing requires use of
the SROV Aircraft during the period the parties plan to conduct the SROV, Boeing
may (i) cancel the SROV (ii) re-schedule the SROV and/ or (iii) adjust the scope
of the SROV Plan as appropriate.

6.3    ***

7.    ***

8.    Confidentiality

8.1    The parties understand that certain commercial and financial information
contained in this Letter Agreement is considered by each party as confidential
and has

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value precisely because it is not available generally to other parties. Each
party agrees to limit the disclosure of the contents of this Letter Agreement to
each respective party’s (a) directors and officers, (b) employees with a need to
know the contents (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 this Letter Agreement’s contents to any other person or entity (other
than those to whom disclosure is permitted by this paragraph) without the prior
written consent of the other party and (c) any independent auditors and
attorneys of each party 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 the other party's consent except as may
be required by applicable law or governmental regulations. Each party shall be
fully responsible to the other for compliance with such obligations.

8.2    ***

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

Very truly yours,
THE BOEING COMPANY
 
 
By
/s/ Jon W. Lewis
Its
Attorney‑In‑Fact
 
 
 
 
 
 
ACCEPTED AND AGREED TO this
 
 
Date:
August 30, 2016
 
SOUTHWEST AIRLINES CO.
 
 
By
/s/ Chris Monroe
 
Chris Monroe
Its
VP, Treasurer

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

SWA‑PA‑03729‑LA‑1301168R3
Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235-1611
Subject:
***

Reference:
Purchase Agreement No. 03729 (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.
The business terms described in this Letter Agreement are provided *** in
consideration of Customer’s taking title to the applicable Firm Aircraft at time
of delivery and becoming the operator of the applicable Firm 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 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/ Kyle Kersavage
Its
Attorney‑In‑Fact
 
 
 
 
 
 
ACCEPTED AND AGREED TO this
 
 
Date:
July 21, 2017
 
SOUTHWEST AIRLINES CO.
 
 
By
/s/ Chris Monroe
 
Chris Monroe
Its
SVP, Finance

SWA-PA-03729-LA-1106468R3

 
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