Supplemental Agreement No. 88
 
to
 
Purchase Agreement No. 1810
 
between
 
THE BOEING COMPANY
 
and
 
SOUTHWEST AIRLINES CO.
 
Relating to Boeing Model 737-7H4 and 737-8H4 Aircraft

THIS SUPPLEMENTAL AGREEMENT is entered into as of August 20, 2014, by and
between THE BOEING COMPANY, a Delaware corporation with principal offices in
Seattle, Washington, (Boeing) and SOUTHWEST AIRLINES CO., a Texas corporation
with principal offices in Dallas, Texas (Buyer).

Buyer and Boeing entered into Purchase Agreement No. 1810 dated January 19,
1994, as amended and supplemented (Purchase Agreement), relating to the purchase
and sale of Boeing Model 737-7H4 aircraft and 737-8H4 aircraft; and this
Supplemental Agreement 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 Buyer agree to amend the Purchase Agreement by revising the
delivery month of one (1) Block 800LUV Aircraft identified by MSN 36909 (the
Subject Aircraft) from October 2014 to September 2014.

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

1.The Table of Contents of the Purchase Agreement is deleted in its entirety and
a new Table of Contents is attached hereto and incorporated into the Purchase
Agreement by this reference.

2. Table 1c, “Aircraft Information Table – Block 800LUV Aircraft (non-ETOPS
Configuration),” to the Purchase Agreement is deleted in its entirety and a new
Table 1c is attached hereto and incorporated into the Purchase Agreement by this
reference. The new Table 1c reflects the revised delivery month of MSN 36909.

***Pursuant to 17 CFR 240.24b-2, confidential information has been omitted and
has been filed separately with the Securities and Exchange Commission pursuant
to a Confidential Treatment Application filed with the Commission.

P.A. No. 1810
SA-88-1

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

3.
Attachment A to Letter Agreement No. SWA-PA-1810-LA-1001315R3, *** is deleted in
its entirety and a new Attachment A (identified by “SA-88”) is attached hereto
and incorporated into the Purchase Agreement by this reference. The new
Attachment A reflects the revised delivery month of MSN 36909.

4.As a result of the revised delivery month of the Subject Aircraft, an excess
in Advance Payments made by Buyer to Boeing exists in the amount of ***. The
Advance Payment excess created hereby will be applied to the Aircraft Price of
MSN 36909 at the time of delivery.  

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

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

THE BOEING COMPANY
SOUTHWEST AIRLINES CO.
By:    /s/ Jeff Solomon       
By: /s/ Chris Monroe____________

Its:    Attorney‑In‑Fact         
        Chris Monroe
Its: VP, Treasurer_______________

P.A. No. 1810
SA-88-2

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

TABLE OF CONTENTS
 
Page
SA
 
Number
Number

ARTICLES

1.
Subject Matter of Sale
1-1
SA-82
 
 
 
 
2.
Delivery, Title and Risk
 
 
 
of Loss
2-1
SA-28
 
 
 
 
3.
Price of Aircraft
3‑1
SA-82
 
 
 
 
4.
Taxes
4-1
 
 
 
 
 
5.
Payment
5‑1
 
 
 
 
 
6.
Excusable Delay
6‑1
 
 
 
 
 
7.
Changes to the Detail
 
 
 
Specification
7-1
SA-73
 
 
 
 
8.
Federal Aviation Requirements and
 
 
 
Certificates and Export License
8-1
 
 
 
 
 
9.
Representatives, Inspection,
 
 
 
Flights and Test Data
9-1
 
 
 
 
 
10.
Assignment, Resale or Lease
10‑1
 
 
 
 
 
11.
Termination for Certain Events
11‑1
 
 
 
 
 
12.
Product Assurance; Disclaimer and
 
 
 
Release; Exclusion of Liabilities;
 
 
 
Customer Support; Indemnification
 
 
 
and Insurance
12-1
 
 
 
 
 
13.
Buyer Furnished Equipment and
 
 
 
Spare Parts
13-1
 
 
 
 
 
14.
Contractual Notices and Requests
14‑1
 
 
 
 
 
15.
Miscellaneous
15‑1
 

P.A. No. 1810
i
 
K/SWA
 
SA-88

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

Table of Contents
 
 
SA
 
 
Number

TABLE

1a
Aircraft Information Table – Block 700LUV Aircraft
 
SA-85
 
 
 
 
1b
Aircraft Information Table – Block 800LUV Aircraft
 
SA-82
 
 
 
 
1c
Aircraft Information Table – Block 800LUV Aircraft
 
SA-88
 
(non-ETOPS Configuration)
 
 

EXHIBITS

A-5
Aircraft Configuration – Block 700LUV Aircraft
 
SA-75
 
 
 
 
A-6
Aircraft Configuration – Block 800LUV Aircraft
 
SA-75
 
 
 
 
A-7
Aircraft Configuration – Block 800LUV Aircraft
 
SA-84
 
(non-ETOPS Configuration)
 
 
 
 
 
 
B
***
 
SA-75
 
 
 
 
C
Customer Support Document
 
 
 
 
 
 
C-2
737-800 Customer Support Document
 
SA-75
 
 
 
 
D-2
Economic Price Adjustment
 
SA-75
 
ECI-MFG/CPI (July 2011 Base Price)
 
 
 
 
 
 
E
Buyer Furnished Equipment
 
SA-75
 
Provisions Document
 
 
 
Attachment A – 737-7H4 Aircraft (through 2012)
 
 
 
Attachment B – 737-8H4 Aircraft (2012-2018)
 
SA-87
 
 
 
 
F
Defined Terms Document
 
 

LETTER AGREEMENTS

1810-1R1
Waiver of Aircraft Demonstration Flight
 
SA-75

P.A. No. 1810
ii
 
K/SWA
 
SA-88

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

Table of Contents
 
 
SA
 
 
Number

RESTRICTED LETTER AGREEMENTS

6‑1162‑RLL‑932R3
***
 
SA-75
 
 
 
 
6‑1162‑RLL‑934R5
Disclosure of Confidential
 
SA-75
 
Information
 
 
 
 
 
 
 
 
 
 
6‑1162‑RLL‑941R3
Other Matters
 
SA-75
 
 
 
 
 
 
 
 
6-1162-KJJ-055R1
Structural Matters
 
SA-25
 
 
 
 
6-1162-KJJ-056
Noise and Emission Matters
 
SA-13
 
 
 
 
6-1162-KJJ-057
Product Development Matters
 
SA-13

SWA-PA-1810-LA-1001315R3
***
 
SA-85
 
Attachment A
 
SA-88
 
 
 
 
 
 
 
 
SWA-PA-1810-LA-1003498 R1
***
 
SA-75
 
 
 
 
SWA-PA-1810-LA-1003490R2
***
 
SA-82
 
 
 
 
SWA-PA-1810-LA-1003367R1
***
 
SA-75
 
 
 
 
SWA-PA-1810-LA-1105883
Aircraft Model Substitution
 
SA-75
 
 
 
 
SWA-PA-1810-LA-1105884
Option Aircraft
 
SA-75
 
Attachment B– Option Aircraft Information Table SA-83
 
 
 
 
 
 
 
 
SWA-PA-1810-LA-1105885R2
***
 
SA-84
 
 
 
 
SWA-PA-1810-LA-1105886R1
***
 
SA-82
 
 
 
 
 
 
 
 
SWA-PA-1810-LA-1105887
***
 
SA-75
 
 
 
 

P.A. No. 1810
iii
 
K/SWA
 
SA-88

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

Table of Contents
 
 
SA
 
 
Number

SWA-PA-1810-LA-1105888R4
***
 
SA-85
 
 
 
 
SWA-PA-1810-LA-1105889
***
 
SA-75
 
 
 
 
SWA-PA-01810/03729-LA-1301169
***
 
SA-83
 
 
 
 
SWA-PA-1810-LA-1303010
***
 
SA-85

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

INACTIVE / DELETED TABLES, EXHIBITS, AND LETTER AGREEMENTS

TABLE

Table
Title
Last Updated under SA
Current Status
1
Aircraft Information Table
SA-75
Inactive
2
Option Aircraft Information Table
SA-74
Deleted under SA-75

EXHIBITS

Exhibits
Title
Last Updated under SA
Current Status
A
Aircraft Configuration – 737-700
SA-36
Inactive
A-Winglet
Aircraft Configuration
SA-36
Inactive
A-1-Winglet
Aircraft Configuration
SA-36
Inactive
A-1A
Aircraft Configuration - 737-700 Block T-W-2c
SA-36
Inactive
A-2
Aircraft Configuration - 737-700 Block T-W-2 / T-W-2a
SA-47
Inactive
A-3
Aircraft Configuration - 737-700 Block T-W-2 / T-W-2a
SA-61
Inactive

P.A. No. 1810
iv
 
K/SWA
 
SA-88

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

TABLE OF CONTENTS

A-4
Aircraft Configuration - 737-700 Block T-W-2b Aircraft
SA-66
Inactive
C.2
737-800 Customer Support Variables
SA-71
Deleted under SA-75
D
Price Adjustment Due to
Economic Fluctuations – Aircraft Price Adjustment
(July 1992 Base Price)
 
Inactive
D-1
Price Adjustment Due to Economic Fluctuations – Aircraft Price Adjustment
(July 1999 Base Price)
SA-13
Inactive
E.2
737-800 Buyer Furnished Equipment Provisions Document
SA-73
Deleted under SA-75

RESTRICTED LETTER AGREEMENTS

Letter Agreement
Title
Last Updated under SA
Current Status
6‑1162‑RLL‑933R21
Option Aircraft
SA-60
Deleted under SA-75
6‑1162‑RLL‑935R1
Performance Guarantees
SA-1
Inactive
6‑1162‑RLL‑936R4
Certain Contractual Matters
SA-4
Inactive
6‑1162‑RLL‑937
Alternate Advance Payment Schedule
 
Inactive
6‑1162‑RLL‑938
***
 
Inactive
6‑1162‑RLL‑939R1
Certification Flight Test Aircraft
SA-1
Inactive
6‑1162‑RLL‑940R1
Training Matters
SA-1
Inactive
6‑1162‑RLL‑942
Open Configuration Matters
 
Inactive
6‑1162‑RLL‑943R1
Substitution Rights
SA-6
Deleted under SA 75
6‑1162‑RLL‑944
***

 
Inactive
6-1162-RLL-945
Comparison of 737-7H4 and 737-3H4 Block Fuel Burn
 
Inactive
6-1162-RLL-1855R3
Additional Contractual Matters
SA-4
Inactive
6-1162-RLL-1856
***
SA-1
Inactive
6-1162-RLL-1857
Service Ready Validation Program Field Test
SA-1
Inactive
6-1162-RLL-1858R1
Escalation Matters
SA-4
Inactive
6-1162-RLL-2036
Amortization of Costs for
Customer Unique Changes
SA-1
Inactive

P.A. No. 1810
v
 
K/SWA
 
SA-88

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

TABLE OF CONTENTS

Letter Agreement
Title
Last Updated under SA
Current Status
6-1162-RLL-2037
Reconciliation of the Aircraft Basic Price
SA-1
Inactive
6-1162-RLL-2073
Maintenance Training Matters
SA-1
Inactive
6-1162-KJJ-058R1
Additional Substitution Rights
SA-71
Deleted under SA-75
6-1162-KJJ-150
Flight Control Computer & Mode Control Panel Spares Matter
SA-14
Inactive
6-1162-MSA-185R3
Delivery Change Contractual Matters
SA-21
Inactive
6-1162-JMG-747R1
***
SA-36
Inactive
6-1162-CHL-217
Rescheduled Flight Test Aircraft
SA-32
Inactive
6-1162-NIW-606R1
***
      
SA-36
Inactive
6-1162-NIW-640
Early Delivery of Two April 2004 Aircraft
SA-35
Inactive
6-1162-NIW-889
Warranty - Exterior Color Schemes and Markings for YA143 and on
SA-39
Inactive
6-1162-NIW-1142
***

SA-43
Inactive
6-1162-NIW-1369
***

SA-46
Inactive
6-1162-NIW-1983
***
SA-62
Inactive
SWA-PA-1810-LA-1000419
***

SA-64
Inactive
6-1162-NIW-890R1
***

SA-75

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

SA-75

SA-75
SA-54
Inactive
SWA-PA-1810-LA-02710R1
***
SA-72
Inactive

P.A. No. 1810
vi
 
K/SWA
 
SA-88

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

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

Airframe Model/MTOW:
737-800
174200 pounds
 
Detail Specification: D019A001SWA38P-1 Rev C (3/29/2013)
 
 
 
 
 
 
 
Engine Model/Thrust:
CFM56-7B27
27300 pounds
Note 1
Base Aircraft Price Base Year/Escalation Formula:
Jul-11
ECI-MFG/CPI
 
 
 
 
 
 
 
Base Aircraft Price:
 
***
 
Engine Price Base Year/Escalation Formula:
N/A
N/A

Special Features:
***
 
 
Add'l Features/Changes
***

Total Special Features (Exhibit A-7)
***
 
 
 
 
 
 
 
 
Sub-Total of Airframe and Features:
*** 
 
Aircraft Price 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:
***
 
 
 

Delivery

Date

Number of

Aircraft

Escalation

Factor

(Airframe)

Aircraft

Serial

Number

Escalation

Forecast

Sub-Block

Note 2

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-2013

3

***
36933, 36912, 36914

***
 

***

***

***

***

***

Nov-2013

3

***
36915, 33939, 42526

***
 

***

***

***

***

***

Dec-2013

3

***
36917, 36919, 36731

***
 

***

***

***

***

***

Mar-2014

2

***

37004, 36896

***
 

***

***

***

***

***

Apr-2014

3

***

42384, 36894, 36895

***
 

***

***

***

***

***

May-2014

3

***

36897, 42385, 42521

***
 

***

***

***

***

***

Jun-2014

4

***

36898, 36905, 42522, 42523

***
 

***

***

***

***

***

Jun-2014

2

***

60082, 60083

***

OPEX

***

***

***

***

***

Jul-2014

1

***

36911

***
 

***

***

***

***

***

Jul-2014

3

***

60084, 60085, 60086

***

OPEX

***

***

***

***

***

Aug-2014

6

***
36907, 42524,35973, 42525,
36935, 42528

***
 

***

***

***

***

***

Sep-2014

2

***

42527, 42531

***
 

***

***

***

***

***

SWA-PA-01810
 
SA-88
63879 / 63887 / 64110 / 64111 / 66379 / 68788 / 70150
Boeing Proprietary
Page 1

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

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

Delivery

Date
Number of

 Aircraft

Escalation

Factor

(Airframe)

Aircraft

Serial

Number

Escalation

Forecast

Sub-Block

Note 2

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-2014

1

***

36909

***
 

***

***

***

***

***

Oct-2014
1

***
36920

***
 

***

***

***

***

***

Nov-2014

1

***

36971

***
 

***

***

***

***

***

Dec-2014

2

***
37037, 37045

***
 

***
***

***

***

***

Dec-2014

2

***
42529, 42530

***
 

***

***

***

***

***

Jan-2015

2

***
36899, 42535

***
 

***

***

***

***

***

Feb-2015

3

***
36901, 36654, 36906

***
 

***

***

***

***

***

Mar-2015

2

***
36902, 36936

***
 

***

***

***

***

***

Apr-2015

2

***
36649, 36652

***
 

***

***

***

***

***

May-2015

2

***
36903, 36657

***
 

***

***

***

***

***

Jun-2015

2

***
36655, 36656

***
 

***

***

***

***

***

Nov-2015

3

***
36937, 36715, 36940

***
 

***

***

***

***

***

Dec-2015

3

***
36941, 36734, 35976

***
 

***

***

***

***

***

Total:
61

Notes:
1) ***

2) The sub-block identifier is used to denote applicability of certain business
terms as referenced in Letter Agreement SWA-PA-1810-LA-1105888R4 to the Purchase
Agreement.

SWA-PA-01810
 
SA-88
63879 / 63887 / 64110 / 64111 / 66379 / 68788 / 70150
Boeing Proprietary
Page 2

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

Attachment A to SWA-PA-1810-LA1001315R3
Page 1 of 2

***

Letter Agmt SWA-PA-1810-LA-1001315R3; paragraph 3
No.
1
Model
737-700
Aircraft Block
T-W-2b
MSN's
36962
Current Delivery Mo.
July-11
Base Year
1999
***
***
2
737-700
T-W-2b
36963
July-11
1999
***
3
737-700
T-W-2b
36965
August-11
1999
***
4
737-700
T-W-2b
36967
October-11
1999
***
5
737-800
800LUV
36980
March-12
2011
***
6
737-800
800LUV
36983
April-12
2011
***
7
737-800
800LUV
36985
May-12
2011
***
8
737-800
800LUV
36987
May-12
2011
***
9
737-800
800LUV
36990
July-12
2011
***
10
737-800
800LUV
36992
August-12
2011
***
11
737-800
800LUV
36994
September-12
2011
***
12
737-800
800LUV
37003
November-12
2011
***
13
737-800
800LUV
37009
December-12
2011
***
14
737-800
800LUV
36973
March-13
2011
***
15
737-800
800LUV
36998
March-13
2011
***
16
737-800
800LUV
36908
April-13
2011
***
17
737-800
800LUV
36933
September-13
2011
***
18
737-800
800LUV
42526
November-13
2011
***
19
737-800
800LUV
37004
March-14
2011
***
20
737-800
800LUV
42521
May-14
2011
***
21
737-800
800LUV
42522
June-14
2011
***
22
737-800
800LUV
60082
June-14
2011
***
23
737-800
800LUV
60083
June-14
2011
***
24
737-800
800LUV
42523
June-14
2011
***
25
737-800
800LUV
60084
July-14
2011
***
26
737-800
800LUV
60085
July-14
2011
***
27
737-800
800LUV
60086
July-14
2011
***
28
737-800
800LUV
42524
August-14
2011
 
29
737-800
800LUV
42525
August-14
2011
***
30
737-800
800LUV
36935
August-14
2011
 
31
737-800
800LUV
42527
September-14
2011
 
32
737-800
800LUV
42528
August-14
2011
***
33
737-800
800LUV
42531
September-14
2011
 
34
737-800
800LUV
36909
September-14
2011
 
35
737-800
800LUV
42529
December-14
2011
 
36
737-800
800LUV
42530
December-14
2011
 
37
737-800
800LUV
37045
December-14
2011
 
38
737-800
800LUV
37037
December-14
2011
 
39
737-800
800LUV
42535
January-15
2011
 
40
737-800
800LUV
36940
November-15
2011
 
41
737-700
700LUV
36938
April-16
2011
 
42
737-700
700LUV
36939
May-16
2011
 
43
737-700
700LUV
36945
July-16
2011
 
44
737-700
700LUV
36977
September-16
2011
 
45
737-700
700LUV
42532
January-17
2011
 
46
737-700
700LUV
36910
January-17
2011
 
47
737-700
700LUV
36970
February-17
2011
 
48
737-700
700LUV
36969
February-17
2011
 

SA-88

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

Attachment A to SWA-PA-1810-LA1001315R3
Page 2 of 2

49
737-700
700LUV
36972
March-17
2011
50
737-700
700LUV
36927
April-17
2011
51
737-700
700LUV
36974
April-17
2011
52
737-700
700LUV
36925
May-17
2011
53
737-700
700LUV
36975
May-17
2011
54
737-700
700LUV
36976
June-17
2011
55
737-700
700LUV
36926
January-18
2011
56
737-700
700LUV
42533
February-18
2011
57
737-700
700LUV
42545
February-18
2011
58
737-700
700LUV
42534
March-18
2011
59
 
 
tbd
 
 
60
 
 
tbd
 
 
61
 
 
tbd
 
 
62
 
 
tbd
 
 

SA-88