Exhibit 10.6

CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION IN ACCORDANCE WITH THE
SECURITIES ACT OF 1933, AS AMENDED, AND RULE 24B-2 PROMULGATED THEREUNDER.
OMITTED INFORMATION HAS BEEN REPLACED WITH ASTERISKS.

Supplemental Agreement No. 4

to

Purchase Agreement No. 3860

between

The Boeing Company

and

United Airlines, Inc.

Relating to Boeing Model 787 Aircraft

THIS SUPPLEMENTAL AGREEMENT, entered into as of January 14, 2015, by and between
THE BOEING COMPANY (Boeing) and UNITED AIRLINES, INC. (a Delaware corporation
formerly known as Continental Airlines, Inc. and successor by merger to United
Air Lines, Inc.) (Customer);

WHEREAS, the parties hereto entered into Purchase Agreement No. 3860 dated
September 27, 2012, as amended and supplemented (Purchase Agreement), relating
to the purchase and sale of Boeing model 787 aircraft (Aircraft). This
Supplemental Agreement is an amendment to the Purchase Agreement;

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

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

 

787-*** MSN

  

787-*** Aircraft Delivery Month

  

777 MSN

  

777 Aircraft Delivery Month

***

   ***    ***    ***

WHEREAS, Boeing and Customer agree to apply all advance payments received by
Boeing for the Cancelled Aircraft to the 777 Aircraft;

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

 

UAL-PA-3860

  SA-4   Page 1 BOEING / UNITED AIRLINES, INC. PROPRIETARY

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

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

 

1. Table of Contents and Articles.

The Table of Contents is replaced in its entirety with the Table of Contents
that is attached hereto and references this Supplemental Agreement No. 4.

 

1. Exhibits.

Exhibit A2, “787-9 Aircraft Configuration” is replaced in its entirety with the
Exhibit A2, “787-9 Aircraft Configuration” that is attached hereto and
references this Supplemental Agreement No. 4.

 

2. Tables.

Table 1 for the 787-9 Aircraft is replaced in its entirety with the Table 1 for
the 787-9 Aircraft that is attached hereto and references this Supplemental
Agreement No. 4.

 

3. Letter Agreements.

 

  3.1. Letter Agreement UAL-PA-03860-LA-1209413A1, Special Matters – Amendment
1, which is attached hereto and references this Supplemental Agreement No. 4, is
hereby inserted into the Purchase Agreement immediately after Letter Agreement
UAL-PA-03860-LA-1209413R1, Special Matters.

 

  3.2. Letter Agreement UAL-PA-03860-LA-1301377A1, 787-10 *** – Amendment 1,
which is attached hereto and references this Supplemental Agreement No. 4, is
hereby inserted into the Purchase Agreement immediately after Letter Agreement
UAL-PA-03860-LA-1301377, 787-10 ***.

 

  3.3. Letter Agreement UAL-PA-03860-LA-1500059, Installation of Cabin Systems
Equipment, which is attached hereto and references this Supplemental Agreement
No. 4, is hereby inserted into the Purchase Agreement.

 

  3.4. Letter Agreement UAL-PA-03860-LA-1500017, Demonstration Flight Waiver,
which is attached hereto and references this Supplemental Agreement No. 4, is
hereby inserted into the Purchase Agreement.

 

4. Conditions Precedent: This Supplemental Agreement No. 4 will be effective
subject to satisfaction of all of the following conditions precedent
(collectively the Conditions Precedent):

 

  a. Execution of Supplemental Agreement No. 10 to Purchase Agreement No. 02484
between Boeing and Customer relating to Boeing model 787 Aircraft;

 

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

 

UAL-PA-3860

SA-4 Page 2 BOEING / UNITED AIRLINES, INC. PROPRIETARY

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

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

Upon satisfaction of the Conditions Precedent, the Purchase Agreement will be
deemed to be supplemented to the extent herein provided as of the date hereof
and as so supplemented will continue in full force and effect.

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

 

THE BOEING COMPANY

UNITED AIRLINES, INC.

/s/ Susan Englander

/s/ Gerald Laderman

Signature

Signature

Attorney-in-Fact

Senior Vice President – Finance, Procurement and Treasurer

Title

Title

 

UAL-PA-3860

SA-4 Page 3 BOEING / UNITED AIRLINES, INC. PROPRIETARY

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

TABLE OF CONTENTS

 

         

SA
NUMBER

ARTICLES

     

Article 1.

   Quantity, Model and Description    SA-1

Article 2.

   Delivery Schedule    SA-1

Article 3.

   Price    SA-1

Article 4.

   Payment    SA-1

Article 5.

   Additional Terms    SA-1

TABLE

     

1.

   787-8 with GENX-1B*** Engines Aircraft Information Table ***    SA-3

1.

   787-9 with GENX-*** Engines Aircraft Information Table    SA-4

1.

   787-10 with GENX-1B*** Engines Aircraft Information Table    SA-3

EXHIBITS

     

A1.

   787-8 Aircraft Configuration   

A2.

   787-9 Aircraft Configuration    SA-4

A3.

   787-10 Aircraft Configuration    SA-1

B.

   Aircraft Delivery Requirements and Responsibilities   

SUPPLEMENTAL EXHIBITS

     

AE1.

   Escalation Adjustment/Airframe and Optional Features   

BFE1.

   BFE Variables    SA-1

CS1.

   Customer Support Document   

EE1.

   Engine Escalation/Engine Warranty ***   

SLP1.

   Service Life Policy Components   

 

P.A. 3860

  TABLE OF CONTENTS, Page 1 of 5   SA-4 BOEING/UNITED AIRLINES, INC. PROPRIETARY

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

TABLE OF CONTENTS, CONTINUED

 

            

SA
NUMBER

LETTER AGREEMENTS

      

UAL-PA-03860-LA-1209247

 

787 e-Enabling

  

UAL-PA-03860-LA-1209264

 

Open Configuration Matters

  

UAL-PA-03860-LA-1209265R1

 

Option Aircraft

   SA-1    

Attachment A, 787-9 Option Aircraft Delivery, Description, Price and Advance
Payments (DELETED)

   SA-1    

Attachment B-1, 787-*** with GENX-1B*** Engines: Option Aircraft Delivery,
Description, Price and Advance Payments

   SA-1    

Attachment B-2, 787-*** with TRENT1000-*** Engines: Option Aircraft Delivery,
Description, Price and Advance Payments (DELETED)

   SA-3

UAL-PA-03860-LA-1209409

 

Spare Parts Initial Provisioning

  

UAL-PA-03860-LA-1209410

 

Special Matters Relating to COTS Software and End User License Agreements

  

UAL-PA-03860-LA-1209411

 

Special Terms – Seats and In-flight Entertainment

  

UAL-PA-03860-LA-1209417

 

Model 787 Post-Delivery Software & Data Loading

  

CONFIDENTIAL LETTER AGREEMENTS

      

UAL-PA-03860-LA-1209236R1

  Model Substitution    SA-1    

Attachment A, 787-9 Airframe Pricing of Substitution Aircraft with General
Electric GEnx-1B*** and Rolls Royce Trent 1000-*** engines

   SA-1    

Attachment B, 787-10 with General Electric GEnx-1B*** and Rolls Royce TRENT
1000-*** Engines

   SA-1    

Attachment C, 787-8 with General Electric GEnx-1B*** and Rolls Royce TRENT
1000-***

   SA-1

 

P.A. 3860

  TABLE OF CONTENTS, Page 2 of 5   SA-4 BOEING / UNITED AIRLINES, INC.
PROPRIETARY

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

TABLE OF CONTENTS, CONTINUED

 

     SA
NUMBER  

CONFIDENTIAL LETTER AGREEMENTS, continued

     

UAL-PA-03860-LA-1209412

   Spare Parts Commitment   

UAL-PA-03860-LA-1209413R1

   Special Matters      SA-1   

UAL-PA-03860-LA-1209413A1

   Special Matters – Amendment 1      SA-4   

UAL-PA-03860-LA-1209414

   Other Special Matters   

UAL-PA-03860-LA-1209413A1

   Other Special Matters - Amendment 1      SA-1   

UAL-PA-03860-LA-1209416R1

   Promotional Support      SA-2   

UAL-PA-03860-LA-1209430

   Performance Guarantees   

UAL-PA-03860-LA-1209455

   *** TERMINATED      SA-1   

UAL-PA-03860-LA-1209429

   ***   

UAL-PA-03860-LA-1209618R1

   Alternate Engine Selection      SA-1   

6-1162-ELP-0794

   *** Program- *** Aircraft   

6-1162-ELP-0795

   *** Program- *** Aircraft   

UAL-PA-03860-LA-1301368

   Performance Guarantees (787-10)      SA-1   

UAL-PA-03860-LA-1301373

   787-10 Aircraft Open Configuration and Other Matters      SA-1   

UAL-PA-03860-LA-1301375

   Provisions Relating to Customer’s *** for 787-10 Aircraft      SA-1   

UAL-PA-03860-LA-1301377

   787-10 ***      SA-1   

UAL-PA-03860-LA-1301377A1

   787-10 *** – Amendment 1      SA-4   

UAL-PA-03860-LA-1301380

   787-10 Program Launch      SA-1   

UAL-PA-03860-LA-1500017

   Demonstration Flight Waiver      SA-4   

UAL-PA-03860-LA-1500059

   Installation of Cabin Systems Equipment      SA-4   

 

P.A. 3860

  TABLE OF CONTENTS, Page 3 of 5   SA-4 BOEING / UNITED AIRLINES, INC.
PROPRIETARY

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

SUPPLEMENTAL AGREEMENTS

  

DATED AS OF

Supplemental Agreement No. 1

   June 17, 2013

Supplemental Agreement No. 2

   December 16, 2013

Supplemental Agreement No. 3

   July 22, 2014

Supplemental Agreement No. 4

   January 14, 2015

 

P.A. 3860

  TABLE OF CONTENTS, Page 4 of 5   SA-4 BOEING / UNITED AIRLINES, INC.
PROPRIETARY

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

Table 1 to Purchase Agreement No. 3860

787-9 Aircraft with GENX-1B*** Engines Delivery, Description, Price and Advance
Payments

APBP beginning *** prior to applicable delivery for *** 787-9 aircraft only

 

Airframe Model/MTOW:      787-9         ***pounds             Detail
Specification:      ***            

Engine Model/Thrust:

  

 

GENX-1B***¹

  

     ***pounds            

Airframe Price Base Year/Escalation Formula:

   

     ***            ***   

Airframe Price:

           $***         

Engine Price Base Year/Escalation Formula:

   

     ***            ***   

Optional Features:

           $***                              

 

 

    

 

              

Sub-Total of Airframe and Features:

  

  $***   

Airframe Escalation Data:

Engine Price (Per Aircraft):

  

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

 

 

    

 

              

Aircraft Basic Price (Excluding BFE/SPE):

  

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

 

 

    

 

              

Buyer Furnished Equipment (BFE) Estimate:

  

  $***    Engine Escalation Data:

Seller Purchased Equipment (SPE) Estimate:

  

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

 

Delivery

Date

   *** Prior
to
Applicable
Delivery    Number of
Aircraft    Escalation
Factor
(Airframe)    Escalation
Factor
(Engine)    Serial
Number    Escalation
Estimate
Adv
Payment
Base
Price
Per A/P    Advance Payment Per Aircraft (Amts. Due/Mos.
Prior to Delivery):                      ***    ***    ***    *** ***    ***   
***    ***    ***    ***    $***    $***    $***    $***    $***

Total

   ***   

¹ *** on a *** to deliver GEnx-1B*** thrust rating at the GEnx-1B*** price.

 

UAL-PA-3860, APR 71359

  Boeing Proprietary   Table 1 787-9 with GENX-1B*** Engines Page 1, SA-4

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

787-9 AIRCRAFT CONFIGURATION

between

THE BOEING COMPANY

and

UNITED AIRLINES, INC.

Exhibit A2 to Purchase Agreement Number 3860

 

P.A. No. 3860

A2 SA 4 BOEING PROPRIETARY

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

Exhibit A2 to

Purchase Agreement No. 3860

Page 2

AIRCRAFT CONFIGURATION

relating to

BOEING MODEL 787-9 AIRCRAFT

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

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

 

P.A. No. 3860

A2-2 SA-4 BOEING PROPRIETARY

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

Exhibit A2 to

Purchase Agreement No. 3860

Page 3

 

CR

  

Title

  

Price Per

Aircraft

2006$

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

 

P.A. No. 3860

  A2-3   SA-4 BOEING PROPRIETARY

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

Exhibit A2 to

Purchase Agreement No. 3860

Page 4

 

CR

  

Title

  

Price Per

Aircraft

2006$

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

 

P.A. No. 3860

  A2-4   SA-4 BOEING PROPRIETARY

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

Exhibit A2 to

Purchase Agreement No. 3860

Page 5

 

CR

  

Title

   Price Per
Aircraft
2006$   ***    ***      ***    ***    ***      ***    ***    ***      ***    ***
   ***      ***    ***    ***      ***    ***    ***      ***    ***    ***     
***    ***    ***      ***    ***    ***      ***    ***    ***      ***    ***
   ***      ***    ***    ***      ***    ***    ***      ***    ***    ***     
***    ***    ***      ***    ***    ***      ***    ***    ***      ***    ***
   ***      ***    ***    ***      ***    ***    ***      ***    ***    ***     
***    ***    ***      ***    ***    ***      ***    ***    ***      ***    ***
   ***      ***    ***    ***      ***    ***    ***      ***    ***    ***     
***    ***    ***      ***         

 

 

  TOTAL OPTIONS *** $ ***         

 

 

 

 

P.A. No. 3860

A2-5 SA-4 BOEING PROPRIETARY

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LOGO [g891332g75x39.jpg]

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

 

 

UAL-PA-03860-LA-1209413A1

United Airlines, Inc.

233 South Wacker Drive

Chicago, Illinois 60606

 

Subject: Special Matters — Amendment 1 Reference: Purchase Agreement No. 3860
(Purchase Agreement) between The Boeing Company (Boeing) and United Airlines,
Inc. relating to Model 787 aircraft (Aircraft)

This letter agreement (Amending Letter Agreement) amends and supplements the
Purchase Agreement and amends certain terms in Letter Agreement
UAL-PA-03860-LA-1209413 (the Letter Agreement). All terms used and not defined
in this Letter Agreement have the same meaning as in the Purchase Agreement.

 

1. Amendments to Article 4 of the Letter Agreement..

Article 4.4 of the Letter Agreement is hereby deleted and replaced with the
following:

 

  4.4. Special *** Provisions for the Launch Aircraft. With respect to the ***
787-10 Aircraft listed in Table 1 to the Purchase Agreement as of the effective
date of Supplemental Agreement No. 3 to the Purchase Agreement; (each a Launch
Aircraft), the parties agree that *** of the Article 4.1 *** obligation will be
*** delivery of each Launch Aircraft (Launch Aircraft *** Obligation). At time
of delivery of each Launch Aircraft, Boeing will *** to *** the Launch Aircraft
*** Obligation.

 

2. Confidential Treatment.

Boeing and Customer understand that certain information contained in this Letter
Agreement, including any attachments hereto, is considered by both parties to be
confidential. Boeing and Customer agree that each party will treat this Letter
Agreement and the

 

UAL-PA-03860-LA-1209413A1

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LOGO [g891332g75x39.jpg]

 

information contained herein as confidential and will not, without the other
party’s prior written consent, disclose this Letter Agreement or any information
contained herein to any other person or entity except as may be required by
applicable law or governmental regulations.

[The rest of the page is intentionally blank. Signature page follows.]

Very truly yours,

 

THE BOEING COMPANY By

/s/ Susan Englander

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

/s/ Gerald Laderman

Its Senior Vice President – Finance, Procurement and Treasurer

 

 

UAL-PA-03860-LA-1209413A1

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The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

 

UAL-PA-03860-LA-1301377A1

United Airlines, Inc.

233 South Wacker Drive

Chicago, Illinois 60606

 

Subject: 787-10 *** – Amendment 1

 

Reference: Purchase Agreement No. PA 3860 (Purchase Agreement) between The
Boeing Company (Boeing) and United Airlines, Inc (Customer) relating to
Model 787-10 aircraft (Aircraft)

This letter agreement (Amending Letter Agreement) amends and supplements the
Purchase Agreement and amends certain of the terms in Letter Agreement
UAL-PA-03860-LA-1301377 (the Letter Agreement). All terms used and not defined
in this Amending Letter Agreement have the same meaning as in the Purchase
Agreement.

 

1. Amendments to Article 1 of the Letter Agreement.

The definition of “Program Aircraft” in Article 1 of the Letter Agreement is
hereby deleted in its entirety and replaced with the following new definition:

Program Aircraft means each 787-10 Aircraft specified in Table 1 of the Purchase
Agreement as of the date of this Letter Agreement and any 787-10 Option Aircraft
for which Customer has exercised its option exercise rights.

 

2. Confidential Treatment.

Customer and Boeing understand that certain commercial and financial information
contained in this Amending Letter Agreement are considered by Boeing and
Customer as confidential and are subject to the terms and conditions set forth
in Letter Agreement No. UAL-PA-03776-LA-1208234.

[The rest of this page is intentionally left blank. Signature page follows]

 

UAL-PA-03860-LA-1301377A1

787-10 *** – Amendment 1

SA-4

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Very truly yours,

 

THE BOEING COMPANY

By

/s/ Susan Englander

Its

Attorney-In-Fact

ACCEPTED AND AGREED TO this

Date:

January 14, 2015

UNITED AIRLINES, INC.

By

/s/ Gerald Laderman

Its

Senior Vice President – Finance, Procurement and Treasurer

 

UAL-PA-03860-LA-1301377A1

787-10 *** Program – Amendment 1

SA-4

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BOEING / UNITED AIRLINES, INC. PROPRIETARY

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The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

 

 

UAL-PA-3860-LA-1500017

United Airlines, Inc.

233 South Wacker Drive

Chicago, IL 60606

 

Subject:

   Demonstration Flight Waiver

Reference:

   Purchase Agreement No. PA-3860 (Purchase Agreement) between The Boeing
Company (Boeing) and United Airlines, Inc. (Customer) relating to Model 787
aircraft (Aircraft)

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

Definition of Terms:

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

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

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

 

Aircraft Model

  

***

787

   ***

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

 

UAL-PA-3860-LA-1500017

Demonstration Flight Waiver

   

SA-4

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

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

Very truly yours,

THE BOEING COMPANY By

/s/ Susan Englander

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

/s/ Gerald Laderman

Its Senior Vice President – Finance, Procurement and Treasurer

 

UAL-PA-3860-LA-1500017

Demonstration Flight Waiver

SA-4

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The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

 

 

UAL-PA-03860-LA-1500059

United Airlines, Inc.

233 South Wacker Drive

Chicago, IL 60606

 

Subject: Installation of Cabin Systems Equipment Reference: Purchase Agreement
No. PA-03860 (Purchase Agreement) between The Boeing Company (Boeing) and United
Airlines, Inc. (Customer) relating to Model 787 aircraft (Aircraft)

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

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

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

 

1. Responsibilities.

1.1 Customer will:

1.1.1 provide Customer’s CSE system requirements to Boeing;

1.1.2 select the CSE suppliers (Supplier(s)) and system configuration options in
accordance with Letter Agreement UAL-PA-03860-LA-1301373 (mistakenly referred to
as Letter Agreement UAL-PA-03860-LA-01373 in the letter itself), entitled
“787-10 Open Configuration and Other Matters”; or options from among those
identified in Attachment A to this Letter Agreement; or options as otherwise
available in the then current Standard Selections Catalog and formally offered
by Boeing (Options);

 

UAL-PA-03860-LA-1500059 SA-4

Cabin Systems Equipment

LA Page 1 BOEING / UNITED AIRLINES, INC. PROPRIETARY

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

1.1.4 select Supplier part numbers;

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

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

1.1.7 negotiate and obtain agreements with any applicable service providers;

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

1.1.9 cause Suppliers to:

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

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

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

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

 

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1.2 Boeing will:

1.2.1 perform the Project Manager functions stated in Attachment B;

1.2.2 provide Aircraft interface requirements to Suppliers;

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

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

1.2.5 coordinate the resolution of technical issues with Suppliers;

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

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

 

2. Software.

CSE systems may contain software of the following two types:

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

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

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

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

 

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

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

 

3. Changes.

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

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

 

4. Supplier Defaults.

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

 

5. Exhibits B and C to the AGTA.

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

 

6. Boeing’s Remedies.

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

 

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

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

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

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

 

7. Advance Payments.

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

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

 

8. Customer’s Indemnification of Boeing.

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

 

9. Title and Risk of Loss.

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

 

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

Very truly yours,

 

THE BOEING COMPANY By

/s/ Susan Englander

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

/s/ Gerald Laderman

Its Senior Vice President – Finance, Procurement and Treasury

 

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Attachment A

Cabin Systems Equipment

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

Option Request Number and Title

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

 

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

 

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

 

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

 

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

 

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Attachment B

Project Manager

 

1. Project Management.

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

 

  (i) managing the development of all program schedules;

 

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

 

  (iii) defining program metrics and status requirements;

 

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

 

  (v) monitoring compliance with schedules;

 

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

 

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

 

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

 

2. System Integration.

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

 

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

 

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

 

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

 

3. Seat Integration.

 

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

 

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