Exhibit 10.1(b)

Confidential Treatment

Supplemental Agreement No. 68

to

Purchase Agreement No. 1810

between

THE BOEING COMPANY

and

SOUTHWEST AIRLINES CO.

Relating to Boeing Model 737-7H4 Aircraft (the Aircraft)

THIS SUPPLEMENTAL AGREEMENT, entered into as of November 5, 2010, 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);

WHEREAS, the parties hereto entered into Purchase Agreement No. 1810 dated
January 19, 1994, relating to Boeing Model 737-7H4 aircraft (the Agreement) and;

WHEREAS, Boeing and Buyer have agreed to recontract the Contract Delivery Months
of eleven (11) Block T-W-2b Firm Aircraft as follows (Recontracted 2011 Firm
Aircraft):

 

MSN

  

Previous Contract

Delivery Month

  

New Contract Delivery Month

36671    April-2011    Mar - 2011 36672    May-2011    April - 2011 36673   
June-2011    May - 2011 36674    July-2011    June - 2011 36675    August-2011
   July - 2011 36962    August-2011    July - 2011 36963    August-2011    July
- 2011 36676    September-2011    August - 2011 36965    September-2011   
August - 2011 36677    October-2011    September - 2011 36966    October-2011   
September - 2011

and;

***Pursuant to 17 CFR240.24b-2, confidential information has been omitted and
has been filed separately with the Securities and Exchange Commission pursuant
to a Confidential Treatment Application filled with the Commission.

 

P.A. No. 1810

   SA-68-1   

K/SWA

     

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

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

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

2. Table 1 is deleted in its entirety and replaced by a new Table 1 which is
attached hereto to reflect the new Contract Delivery Months for the Recontracted
2011 Firm Aircraft as a Block T-W-2b Firm Aircraft.

The 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:  

  Isabelle Session

    By:  

  Laura Wright

  Its:     Attorney-In-Fact     Its:     Senior Vice President & CFO  

 

P.A. No. 1810

   SA-68-2   

K/SWA

     

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

TABLE OF CONTENTS

 

        

Page

Number

    

SA

Number

ARTICLES         1.   Subject Matter of Sale      1-1       SA-13 2.   Delivery,
Title and Risk of Loss      2-1       SA-28 3.   Price of Aircraft      3-1   
   SA-47 4.   Taxes      4-1       5.   Payment      5-1       6.   Excusable
Delay      6-1       7.   Changes to the Detail Specification      7-1      
SA-1 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-68

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

TABLE OF CONTENTS CON’T

 

        

SA

Number

  TABLE      1.   Aircraft Information Table      SA-68    2.   Option Aircraft
Information Table      SA-66    EXHIBITS      A  

Aircraft Configuration

Exhibit A-4

     SA-66    B   Product Assurance Document      SA-1    C   Customer Support
Document    D  

Price Adjustments Due to

Economic Fluctuations - Aircraft

   E  

Buyer Furnished Equipment

Provisions Document

   F   Defined Terms Document    LETTER AGREEMENTS    1810-1   Waiver of
Aircraft Demonstration Flight   

 

 

P.A. No. 1810

   ii   

K/SWA

      SA-68

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

TABLE OF CONTENTS CON’T

 

      

 

SA

Number

  

  

RESTRICTED LETTER AGREEMENTS

   6-1162-RLL-932R2   Promotional Support      SA-13    6-1162-RLL-933R21  
Option Aircraft      SA-60    6-1162-RLL-934R3   Disclosure of Confidential
Information      SA-14    6-1162-RLL-935R1   Performance Guarantees      SA-1   
6-1162-NIW-890   ***      SA-39    6-1162-RLL-936R4   Certain Contractual
Matters      SA-4    6-1162-RLL-937   Alternate Advance Payment Schedule   
6-1162-RLL-938   ***    6-1162-RLL-939R1   Certification Flight Test Aircraft   
  SA-1    6-1162-RLL-940R1   Training Matters      SA-1    6-1162-RLL-941R2  
Other Matters      SA-13    6-1162-RLL-942   Open Configuration Matters   
6-1162-RLL-943R1   Substitution Rights      SA-6    6-1162-RLL-944   ***   
6-1162-RLL-945   Comparison of 737-7H4 and 737-3H4 Block Fuel Burn   
6-1162-RLL-1855R3   Additional Contractual Matters      SA-4    6-1162-RLL-1856
  ***      SA-1    6-1162-RLL-1857   Service Ready Validation Program Field Test
     SA-1    6-1162-RLL-1858R1   Escalation Matters      SA-4   

 

P.A. No. 1810

   iii   

K/SWA

      SA-68

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

TABLE OF CONTENTS CON’T

 

      

 

SA

Number

  

  

RESTRICTED LETTER AGREEMENTS    6-1162-RLL-2036   Amortization of Costs for
Customer Unique Changes      SA-1    6-1162-RLL-2037   Reconciliation of the
Aircraft Basic Price      SA-1    6-1162-RLL-2073   Maintenance Training Matters
     SA-1    6-1162-KJJ-054R1   Business Matters    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   
6-1162-KJJ-058   Additional Substitution Rights      SA-13    6-1162-KJJ-150  
Flight Control Computer & Mode Control Panel Spares Matter      SA-14   
6-1162-MSA-185R3   Delivery Change Contractual Matters      SA-21   
6-1162-JMG-669R8   ***      SA-54    6-1162-JMG-747R1   ***      SA-36   
6-1162-CHL-217   Rescheduled Flight Test Aircraft      SA-32    6-1162-NIW-606R1
  ***      SA-36    6-1162-NIW-640   Early Delivery of Two April 2004 Aircraft
     SA-35    6-1162-NIW-889   Warranty - Exterior Color Schemes and Markings
for YA143 and on      SA-39    6-1162-NIW-1142   ***      SA-43   
6-1162-NIW-1369   ***      SA-46    6-1162-NIW-1983   ***      SA-62   
SWA-PA-1810-LA-1000419 ***      SA-64    SWA-PA-1810-LA-1001315 ***      SA-66
  

 

P.A. No. 1810

   iv   

K/SWA

      SA-68

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

Table 1 to

Purchase Agreement No. 1810

Aircraft Information Table

 

    

Base

Aircraft

Price

  

Special

Features

  

Aircraft Basic

Price

Block A, B, C, D & E Aircraft

   ***    ***    ***

Block F & G Aircraft

   ***    ***    ***

Block H Aircraft

   ***    ***    ***

Block I Aircraft

   ***    ***    ***

Block J Aircraft

   ***    ***    ***

Block K Aircraft

   ***    ***    ***

Block K-W Aircraft

   ***    ***    ***

Block L Aircraft

   ***    ***    ***

Block T Aircraft

   ***    ***    ***

Block T-W Aircraft

   ***    ***    ***

Block T-W-1 / T-W-1a Aircraft

   ***    ***    ***

Block T-W-2 / T-W-2a Aircraft

   ***    ***    ***

Block T-W-2b Aircraft

   ***    ***    ***

 

Block K-W Aircraft: Block K airplanes with production winglets installation
Block T-W Aircraft: Block T airplanes with production winglets installation
Block T-W-1 / T-W-1a Aircraft: Firm Aircraft contracted to deliver from May 1,
2006 through June 2008 at the signing of SA-47 — (T-W-1a Aircraft — Advance
Payment Schedule per LA 6-1162-JGM-669) Block T-W-2 / T-W-2a Aircraft: U-W-1
Option Aircraft which became Firm Aircraft after signing of SA-47 and Firm
Aircraft contracted to deliver in July 2008 forward at the signing of SA47 —
(T-W-2a Aircraft — Advance Payment Schedule per LA 6-1162-JGM-669) (T-W-2b
Aircraft — Advance Payment Schedule per LA SWA-PA-1810-LA-1001315; )

*  Exhibit A-2 applies to Block T-W-2 / T-W-2a Aircraft delivering through Dec
2009 and the first Aircraft delivering in Jan 2010

*  Exhibit A-3 applies to Block T-W-2 / T-W-2a Aircraft the second Aircraft
delivering in Jan 2010 and on

*  Exhibit A-4 applies to Block T-W-2b Aircraft as identified in Exhibit A-4 to
the Purchase Agreement

 

Delivery

Date

 

Number of

Aircraft

 

Aircraft

Block

  

Escalation Estimate

Adv Payment Base

Price Per A/P

 

Serial Number

Oct-1998

  1   F    ***  

Nov-1998

  2   F    ***  

Dec-1998

  2   F    ***  

Mar-1999

  2   G    ***  

Jun-1999

  2   H    ***  

Jul-1999

  1   H    ***  

Aug-1999

  1   H    ***  

Sep-1999

  2   H    ***  

Oct-1999

  1   H    ***  

Oct-1999

  1   L    ***  

 

SWA - PA1810

   Page 1    SA-68       APR54184

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

Table 1 to

Purchase Agreement No. 1810

Aircraft Information Table

 

Delivery

Date

 

Number of

Aircraft

 

Aircraft

Block

  

Escalation Estimate

Adv Payment Base

Price Per A/P

 

Serial Number

Nov-1999

  2   L    ***  

Dec-1999

  1   L    ***  

Mar-2000

  1   H    ***  

Apr-2000

  2   H    ***  

Jun-2000

  3   L    ***  

Jul-2000

  3   L    ***  

Sep-2000

  1   H    ***  

Sep-2000

  1   L    ***  

Oct-2000

  2   H    ***  

Oct-2000

  1   L    ***  

Nov-2000

  4   L    ***  

Dec-2000

  2   E    ***  

Dec-2000

  1   L    ***  

Jan-2001

  1   E    ***  

Jan-2001

  1   L    ***  

Feb-2001

  1   E    ***  

Feb-2001

  1   L    ***  

Mar-2001

  2   E    ***  

Mar-2001

  2   H    ***  

Apr-2001

  1   H    ***  

Jun-2001

  3   E    ***  

Jul-2001

  1   L    ***  

Sep-2001

  3   E    ***  

Sep-2001

  1   L    ***  

Oct-2001

  3   H    ***  

Oct-2001

  1   L    ***  

Nov-2001

  2   I    ***  

Nov-2001

  1   T    ***  

Dec-2001

  1   I    ***  

Jan-2002

  1   I    ***  

Feb-2002

  1   T    ***  

Mar-2002

  4   I    ***  

Apr-2002

  2   I    ***  

Nov-2002

  1   J    ***  

Dec-2002

  2   I    ***  

Dec-2002

  1   J    ***  

Mar-2003

  2  

L

   ***  

May-2003

  1   I    ***  

Jun-2003

  2   I    ***  

Jul-2003

  1   I    ***  

Jul-2003

  1   L    ***  

Aug-2003

  1   I    ***  

Aug-2003

  2   L    ***  

Sep-2003

  3   I    ***  

Nov-2003

  2   J    ***  

Dec-2003

  2   J    ***  

Jan-2004

  2   T    ***  

Feb-2004

  1   T    ***  

Mar-2004

  1   J    ***  

Mar-2004

  1   K    ***  

Apr-2004

  3   K    ***  

Apr-2004

  3   T    ***  

May-2004

  1   K    ***  

May-2004

  1   T    ***  

Jun-2004

  2   K    ***  

Jun-2004

  6   T    ***  

 

SWA - PA1810

  

Page 2

   SA-68       APR54184

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

Table 1 to

Purchase Agreement No. 1810

Aircraft Information Table

 

Delivery

Date

 

Number of

Aircraft

 

Aircraft

Block

  

Escalation Estimate

Adv Payment Base

Price Per A/P

 

Serial Number

Jul-2004

  2   K    ***  

Jul-2004

  2   T    ***  

Aug-2004

  6   T-W    ***  

Sep-2004

  1   K-W    ***  

Sep-2004

  4   T-W    ***  

Oct-2004

  4   K-W    ***  

Oct-2004

  0   T-W    ***  

Nov-2004

  3   T-W    ***  

Dec-2004

  3   T-W    ***  

Jan-2005

  5   T-W    ***  

Feb-2005

  3   T-W    ***  

Mar-2005

  4   T-W    ***  

Apr-2005

  4   T-W    ***  

May-2005

  2   T-W    ***  

Jun-2005

  4   T-W    ***  

Jul-2005

  2   T-W    ***  

Aug-2005

  2   T-W    ***  

Sep-2005

  3   T-W    ***  

Oct-2005

  2   T-W    ***  

Nov-2005

  2   T-W    ***  

Dec-2005

  1   T-W    ***  

Jan-2006

  1   T-W    ***  

Feb-2006

  4   T-W    ***  

Mar-2006

  3   T-W    ***  

Apr-2006

  2   T-W    ***  

May-2006

  5   T-W-1    ***  

Jun-2006

  5   T-W-1    ***  

Jul-2006

  3   T-W-1    ***  

Aug-2006

  3   T-W-1    ***  

Sep-2006

  3   T-W-1    ***  

Oct-2006

  1   T-W-1    ***  

Nov-2006

  2   T-W-1    ***  

Dec-2006

  2   T-W-1    ***  

Jan-2007

  2   T-W-1    ***  

Feb-2007

  3   T-W-1    ***  

Mar-2007

  2   T-W-1    ***  

Apr-2007

  3   T-W-1    ***  

May-2007

  3   T-W-1    ***  

Jun-2007

  2   T-W-1    ***  

Jun-2007

  1   T-W-1a    ***   36528

Jul-2007

  2   T-W-1    ***  

Jul-2007

  1   T-W-1a    ***   36610

Aug-2007

  2   T-W-1    ***  

Aug-2007

  3   T-W-1a    ***   36611, 36632 & 36633

Sep-2007

  2   T-W-1    ***  

Sep-2007

  1   T-W-1a    ***   36612

Oct-2007

  3   T-W-1    ***  

Oct-2007

  1   T-W-1a    ***   36613

Nov-2007

  1   T-W-1    ***  

Nov-2007

  1   T-W-1a    ***   36614

Dec-2007

  2   T-W-1    ***  

Dec-2007

  1   T-W-1a    ***   36615

Jan-2008

  1   T-W-1    ***  

Jan-2008

  2   T-W-1a    ***   36616 & 36617

Jan-2008

  1   T-W-2    ***   36887

Feb-2008

  1   T-W-1    ***  

 

SWA - PA1810

   Page 3    SA-68       APR54184

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

Table 1 to

Purchase Agreement No. 1810

Aircraft Information Table

 

Delivery

Date

 

Number of

Aircraft

 

Aircraft

Block

  

Escalation Estimate

Adv Payment Base

Price per A/P

 

Serial Number

Feb-2008

  3   T-W-1a    ***   36618, 36619 & 36620

Mar-2008

  1   T-W-1    ***  

Mar-2008

  2   T-W-1a    ***   36621 & 36622

Mar-2008

  1   T-W-2    ***   36888

Apr-2008

  1   T-W-1    ***  

Apr-2008

  2   T-W-1a    ***   36623 & 36624

May-2008

  1   T-W-1    ***  

May-2008

  2   T-W-1a    ***   36625 & 36626

Jun-2008

  1   T-W-1    ***  

Jun-2008

  2   T-W-1a    ***   36627 & 36628

Jul-2008

  2   T-W-2a    ***  

Jul-2008

  2   T-W-2    ***   36889 & 36890

Aug-2008

  1   T-W-2a    ***  

Oct-2008

  1   T-W-2a    ***  

Nov-2008

  1   T-W-2a    ***  

Dec-2008

  1   T-W-2a    ***  

Jan-2009

  1   T-W-2a    ***  

Feb-2009

  2   T-W-2a    ***  

Mar-2009

  2   T-W-2a    ***  

Apr-2009

  2   T-W-2a    ***  

Apr-2009

  1   T-W-2    ***   36900

May-2009

  2   T-W-2a    ***  

Jan-2010

  1   T-W-2    ***   36913

Feb-2010

  1   T-W-2a    ***   36659

Mar-2010

  1   T-W-2a    ***   36660

Mar-2010

  1   T-W-2    ***   36918

May-2010

  1   T-W-2a    ***   36662

May-2010

  1   T-W-2    ***   36924

Jun-2010

  1   T-W-2a    ***   36663

Jul-2010

  1   T-W-2a    ***   36664

Aug-2010

  1   T-W-2a    ***   36665

Oct-2010

  1   T-W-2b    ***   36667

Jan-2011

  1   T-W-2b    ***   36668

Feb-2011

  1   T-W-2b    ***   36669

March-11

  1   T-W-2b    ***   36671

April-11

  1   T-W-2b    ***   36672

May-11

  1   T-W-2b    ***   36673

June-11

  1   T-W-2b    ***   36674

July-11

  1   T-W-2b    ***   36675

July-11

  2   T-W-2b    ***   36963, 36962

August-11

  1   T-W-2b    ***   36676

August-11

  1   T-W-2b    ***   36965

September-11

  1   T-W-2b    ***   36677

September-11

  1   T-W-2b    ***   36966

Oct-2011

  1   T-W-2b    ***   36967

Jan-2012

  1   T-W-2b    ***   36678

Feb-2012

  1   T-W-2b    ***   36679

Feb-2012

  1   T-W-2b    ***   36977

Mar-2012

  1   T-W-2b    ***   36680

Mar-2012

  1   T-W-2b    ***   36980

Apr-2012

  1   T-W-2b    ***   36681

Apr-2012

  1   T-W-2b    ***   36983

May-2012

  1   T-W-2b    ***   36682

May-2012

  1   T-W-2b    ***   36985

Jun-2012

  1   T-W-2b    ***   36683

Jun-2012

  1   T-W-2b    ***   36987

 

SWA - PA1810

   Page 4    SA-68       APR54184

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

Table 1 to

Purchase Agreement No. 1810

Aircraft Information Table

 

Delivery

Date

 

Number of

Aircraft

 

Aircraft

Block

  

Escalation Estimate

Adv Payment Base

Price Per A/P

 

Serial Number

Jul-2012

  1   T-W-2b    ***   36684

Jul-2012

  1   T-W-2b    ***   36990

Aug-2012

  1   T-W-2b    ***   36685

Aug-2012

  1   T-W-2b    ***   36992

Sep-2012

  1   T-W-2b    ***   36686

Sep-2012

  1   T-W-2b    ***   36994

Oct-2012

  1   T-W-2b    ***   36687

Oct-2012

  1   T-W-2b    ***   36997

Nov-2012

  1   T-W-2b    ***   37005

Nov-2012

  1   T-W-2b    ***   37003

Dec-2012

  1   T-W-2b    ***   37006

Dec-2012

  1   T-W-2b    ***   37009

Jan-2013

  1   T-W-2b    ***   36891

Jan-2013

  1   T-W-2b    ***   36634

Feb-2013

  1   T-W-2b    ***   36635

Mar-2013

  1   T-W-2b    ***   36892

Mar-2013

  1   T-W-2b    ***   36638

Apr-2013

  1   T-W-2b    ***   36893

May-2013

  1   T-W-2b    ***   36894

Jun-2013

  2   T-W-2b    ***   36895, 36896

Jul-2013

  1   T-W-2b    ***   36897

Aug-2013

  2   T-W-2b    ***   36898, 36905

Sep-2013

  2   T-W-2b    ***   36907, 36911

Oct-2013

  2   T-W-2b    ***   36912, 36914

Nov-2013

  1   T-W-2b    ***   36915

Dec-2013

  2   T-W-2b    ***   36917, 36919

Jan-2014

  1   T-W-2b    ***   36920

Jan-2014

  1   T-W-2b    ***   36909

Feb-2014

  1   T-W-2b    ***   36922

Feb-2014

  1   T-W-2b    ***   36910

Mar-2014

  1   T-W-2b    ***   36943

Mar-2014

  2   T-W-2b    ***   36927, 36925

Apr-2014

  1   T-W-2b    ***   36944

Apr-2014

  1   T-W-2b    ***   36929

May-2014

  1   T-W-2b    ***   36946

Jun-2014

  1   T-W-2b    ***   36968

Jun-2014

  1   T-W-2b    ***   36949

Jul-2014

  1   T-W-2b    ***   36951

Aug-2014

  2   T-W-2b    ***   36928, 36952

Aug-2014

  1   T-W-2b    ***   37019

Sep-2014

  1   T-W-2b    ***   36954

Oct-2014

  1   T-W-2b    ***   36957

Oct-2014

  1   T-W-2b    ***   37034

Nov-2014

  1   T-W-2b    ***   36971

Dec-2014

  1   T-W-2b    ***   37037

Jan-2015

  1   T-W-2b    ***   36899

Feb-2015

  1   T-W-2b    ***   36901

Mar-2015

  2   T-W-2b    ***   36902, 36936

Apr-2015

  2   T-W-2b    ***   36649, 36652

May-2015

  1   T-W-2b    ***   36903

Jun-2015

  1   T-W-2b    ***   36906

Jun-2015

  1   T-W-2b    ***   36654

Jul-2015

  1   T-W-2b    ***   36655

Aug-2015

  1   T-W-2b    ***   36656

Sep-2015

  1   T-W-2b    ***   36657

Oct-2015

  1   T-W-2b    ***   36937

 

SWA - PA1810

   Page 5    SA-68       APR54184

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

Table 1 to

Purchase Agreement No. 1810

Aircraft Information Table

 

Delivery

Date

 

Number of

Aircraft

 

Aircraft

Block

  

Escalation Estimate

Adv Payment Base

Price Per A/P

 

Serial Number

Dec-2015

  1   T-W-2b    ***   36941

Jan-2016

  1   T-W-2b    ***   36650

Feb-2016

  1   T-W-2b    ***   36904

Feb-2016

  1   T-W-2b    ***   36932

Mar-2016

  1   T-W-2b    ***   36651

Apr-2016

  1   T-W-2b    ***   36653

Apr-2016

  1   T-W-2b    ***   36938

May-2016

  1   T-W-2b    ***   36658

May-2016

  1   T-W-2b    ***   36939

Jun-2016

  1   T-W-2b    ***   36916

Jul-2016

  1   T-W-2b    ***   36921

Jul-2016

  1   T-W-2b    ***   36945

Aug-2016

  1   T-W-2b    ***   36661

Sep-2016

  1   T-W-2b    ***   36923

Oct-2016

  1   T-W-2b    ***   36666

Nov-2016

  1   T-W-2b    ***   36670

 

SWA - PA1810

   Page 6    SA-68       APR54184