Document:

exhibit.htm

    

    SECOND
      AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

     

    SECOND
      AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is
      entered into as of October 16, 2007, by and among PETROLEUM DEVELOPMENT
      CORPORATION (the “Borrower”), CERTAIN SUBSIDIARIES OF THE BORROWER, as
      Guarantors (the “Guarantors”), the LENDERS party hereto (the
“Lenders”) and JPMORGAN CHASE BANK, N.A., as Administrative Agent (the
      “Administrative Agent”).  Unless the context otherwise requires
      or unless otherwise expressly defined herein, capitalized terms used but not
      defined in this Amendment have the meanings assigned to such terms in the Credit
      Agreement (as defined below).

     

     

    WITNESSETH:

     

    WHEREAS,
      the Borrower, the Guarantors, the Administrative Agent and the Lenders have
      entered into that certain Amended and Restated Credit Agreement dated as of
      November 4, 2005 (as amended, supplemented or otherwise modified from time
      to
      time, the “Credit Agreement”); and

     

    WHEREAS,
      the Borrower has requested that the Administrative Agent and the Lenders amend
      the Credit Agreement to, among other things, increase the Borrowing Base and
      the
      potential maximum amount of the Aggregate Revolving Commitment and modify
      certain covenants, and the Administrative Agent and the Lenders have agreed
      to
      do so on the terms and conditions hereinafter set forth;

     

    NOW,
      THEREFORE, for and in consideration of the mutual covenants and
      agreements herein contained and other good and valuable consideration, the
      receipt and sufficiency of which are hereby acknowledged and confessed, the
      Borrower, the Guarantors, the Administrative Agent and the Lenders hereby agree
      as follows:

     

    SECTION
      1.  Amendments
      to Credit Agreement.  Subject to the satisfaction or waiver
      in writing of each condition precedent set forth in Section 5 of this
      Amendment, and in reliance on the representations, warranties, covenants and
      agreements contained in this Amendment, the Credit Agreement shall be amended
      in
      the manner provided in this Section 1.

     

    1.1  Additional
      Definitions.  Section 1.01 of the Credit Agreement
      shall be and it hereby is amended by inserting the following definitions in
      appropriate alphabetical order:

     

    “Acquisition”
      means, the acquisition by the Borrower or any Restricted Subsidiary, whether
      by
      purchase, merger (and, in the case of a merger with any such Person, with such
      Person being the surviving corporation) or otherwise, of all or substantially
      all of the Equity Interest of, or the business, property or fixed assets of
      or
      business line or unit or a division of, any other Person primarily engaged
      in
      the business of producing oil or natural gas or the acquisition by the Borrower
      or any Restricted Subsidiary of property or assets consisting of Oil and Gas
      Interests.

     

    “Disposition”
      means, the disposition by the Borrower or any Restricted Subsidiary, whether
      by
      sale, merger, assignment, transfer or otherwise, of all or substantially all
      of
      the 

    
      
        
        

      

      
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    Equity
      Interest of any Restricted Subsidiary or any property or
      assets consisting of Oil and Gas Interests.

       

    

    “Maximum
      Facility Amount” means $400,000,000.

     

    “Second
      Amendment Effective Date” means October 16, 2007.

     

    “Senior
      Notes” is defined in Section 7.01(j).

     

    1.2  Amended
      Definitions.  Section 1.01 of the Credit Agreement
      shall be and it hereby is amended by amending and restating the following
      definitions to read in their entirety as follows:

     

    “Aggregate
      Revolving Commitment” means the amount equal to the lesser of (i) the
      Maximum Facility Amount and (ii) the Borrowing Base, as such Aggregate Revolving
      Commitment may be reduced or increased pursuant to Section 2.02 and Section
      2.03, provided that in no event shall the Aggregate Revolving Commitment
      exceed the Borrowing Base.  The Aggregate Revolving
      Commitment as of the Second Amendment Effective Date is
      $275,000,000.  If at any time the Borrowing Base is reduced below the
      Aggregate Revolving Commitment, the Aggregate Revolving Commitment shall be
      reduced automatically to the amount of the Borrowing Base in effect at such
      time.

     

    “Capital
      Markets Event” means the receipt by the Borrower of net proceeds of not less
      than $200,000,000 from the issuance of Indebtedness of the Borrower (including
      the issuance of Senior Notes) or Equity Interests of the Borrower on terms
      and
      conditions acceptable to Administrative Agent and Required Lenders and with
      the
      prior written consent of Administrative Agent and Required
      Lenders.

     

    “Consolidated
      EBITDAX” means, with respect to the Borrower and its Restricted Subsidiaries
      for any period, Consolidated Net Income for such period; plus without
      duplication and to the extent deducted in the calculation of Consolidated Net
      Income for such period, the sum of (a) income or franchise Taxes paid or
      accrued; (b) Consolidated Net Interest Expense; (c) amortization, depletion
      and
      depreciation expense; (d) any non-cash losses or charges on any Swap Agreement
      resulting from the requirements of FASB Statement 133 for that period; (e)
      oil
      and gas exploration expenses (including all drilling, completion, geological
      and
      geophysical costs) for such period; (f) losses from sales or other dispositions
      of assets (other than Hydrocarbons produced in the ordinary course of business)
      and other extraordinary or non-recurring losses, and (g) other non-cash charges
      (excluding accruals for cash expenses made in the ordinary course of business);
      minus, to the extent included in the calculation of Consolidated Net
      Income, (h) the sum of (i) any non-cash gains on any Swap Agreements resulting
      from the requirements of FASB Statement 133 for that period; (ii) extraordinary
      or non-recurring gains; and (iii) gains from sales or other dispositions of
      assets (other than Hydrocarbons produced in the ordinary course of business);
      provided that, with respect to the determination of Borrower’s compliance with
      the leverage ratio set forth in Section 7.11(b) for any period, Consolidated
      EBITDAX shall be adjusted to give effect, on a pro forma basis and consistent
      with GAAP, to any Acquisitions or Dispositions made during such period as if
      such Acquisition or Disposition, as the case may be, was made at the beginning
      of such period.

     

    
      
        
        

      

      
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    “Suspension
      Period” means the period beginning August 9, 2007, and ending on the earlier
      of (a) the occurrence of a Capital Markets Event or (b) October 1,
      2008.

     

    1.3  Termination
      and Reduction of the Aggregate Revolving
      Commitment.  Section 2.02(b) of the Credit
      Agreement shall be and it hereby is amended and restated in its entirety to
      read
      as follows:

     

    (b)  The
      Borrower may at any time terminate, or from time to time reduce, the Aggregate
      Revolving Commitment; provided that (i) each reduction of the Aggregate
      Revolving Commitment shall be in an amount that is an integral multiple of
      $1,000,000 and not less than $1,000,000 and shall be applied ratably to each
      Lender’s Revolving Commitment and (ii) the Borrower shall not terminate or
      reduce the Aggregate Revolving Commitment if, after giving effect to any
      concurrent prepayment of the Loans in accordance with Section 2.10 and
      Section 2.11, the Aggregate Revolving Credit Exposure would exceed the Aggregate
      Revolving Commitment.

     

    1.4  Increases
      in the Aggregate Revolving Commitment.  The first sentence of
Section 2.03 of the Credit Agreement shall be and it hereby is
      amended and restated in its entirety to read as follows:

     

    Section 2.03   Increases
      in the Aggregate Revolving Commitment.  So long as no Default has
      occurred and is continuing or would be caused by such increase, the Borrower
      may
      by written notice to the Administrative Agent, on or before ten Business Days
      after any Redetermination of the Borrowing Base pursuant to Article III, elect
      to increase the existing Aggregate Revolving Commitment in a minimum amount
      of
      $5,000,000 and integral multiples of $1,000,000 in excess of that amount (any
      such increase, the “New Commitments”); provided that the amount of
      such increase together with the existing Aggregate Revolving Commitment does
      not, in the aggregate, exceed the lesser of (a) the Maximum Facility Amount
      and
      (b) the Borrowing Base then in effect as a result of such
      Redetermination.

     

    1.5  Letters
      of Credit/Expiration Date.  Section 2.06(c) of
      the Credit Agreement shall be and it hereby is amended and restated in its
      entirety to read as follows:

     

    (c)  Expiration
      Date.  Each Letter of Credit shall expire at or prior to the close
      of business on the earlier of (i) the date one year after the date of the
      issuance of such Letter of Credit (or, in the case of any renewal or extension
      thereof, one year after such renewal or extension) and (ii) the date that
      is five Business Days prior to the Maturity Date.

    
       

      1.6  Repayment of
        Loans; Evidence of Debt.  Section 2.09(e) of the
        Credit Agreement shall be and it hereby is amended and restated in its entirety
        to read as follows:

       

      (e)  Any
        Lender or Participant may request that Loans made by it be evidenced by a
        promissory note.  In such event, the Borrower shall prepare, execute
        and deliver to such Lender or Participant a promissory note payable to the
        order
        of such Lender or Participant (or, if requested by such Lender or Participant,
        to such Lender or Participant and its registered assigns) and in the form
        attached hereto as Exhibit E.  Thereafter, the Loans evidenced by such
        promissory note and interest thereon shall at all times (including after
        assignment pursuant to 

    

    
      
        
        

      

      
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 Section 11.04)
        be represented by one or more promissory notes in such form payable to the
        order
        of the payee named therein (or, if such promissory note is a registered note,
        to
        such payee and its registered assigns).

    

     

    1.7  Reserve
      Report; Proposed Borrowing Base.  Section 3.01 of
      the Credit Agreement shall be and it hereby is amended and restated in its
      entirety to read as follows:

     

    Section 3.01.  Reserve
      Report; Proposed Borrowing Base.  During the period from the
      Effective Date until the first Redetermination after the Effective Date, the
      Borrowing Base shall be $125,000,000 (the “Initial Borrowing Base”).
      During the period from the Second Amendment Effective Date until the first
      Redetermination after the Second Amendment Effective Date, the Borrowing Base
      shall be $275,000,000.  As soon as available and in any event by
      April 1 and October 1 of each year, beginning April 1, 2008, the Borrower
      shall deliver to the Administrative Agent and each Lender a Reserve Report,
      prepared as of the immediately preceding December 31 and June 30, respectively,
      in form and substance reasonably satisfactory to the Administrative Agent and
      prepared by an Approved Petroleum Engineer (or, in the case of the Reserve
      Report due on October 1 of each year, by petroleum engineers employed by the
      Borrower), said Reserve Report to utilize economic and pricing parameters
      established from time to time by the Administrative Agent, together with such
      other information, reports and data concerning the value of the Borrowing Base
      Properties as the Administrative Agent shall deem reasonably necessary to
      determine the value of such Borrowing Base Properties.  Simultaneously
      with the delivery to the Administrative Agent and the Lenders of each Reserve
      Report, the Borrower shall submit to the Administrative Agent and each Lender
      the Borrower’s requested amount of the Borrowing Base as of the next
      Redetermination Date.  Promptly after the receipt by the
      Administrative Agent of such Reserve Report and the Borrower’s requested amount
      for the Borrowing Base, the Administrative Agent shall submit to the Lenders
      a
      recommended amount of the Borrowing Base to become effective for the period
      commencing on the next Redetermination Date.

     

    1.8  Scheduled
      Redeterminations of the Borrowing Base; Procedures and
      Standards.  The first two sentences of
Section 3.02 of the Credit Agreement shall be and they hereby are
      amended and restated in their entirety to read as follows:

     

         Section 3.02.  Scheduled
      Redeterminations of the Borrowing Base; Procedures and
      Standards.  Based in part on the Reserve Reports made available to
      the Administrative Agent and the Lenders pursuant to Section 3.01, the Lenders
      shall redetermine the Borrowing Base on or prior to the next Redetermination
      Date (or such date promptly thereafter as reasonably possible based on the
      engineering and other information available to the Lenders).  Any
      Borrowing Base which becomes effective as a result of any Redetermination of
      the
      Borrowing Base shall be subject to the following restrictions: (a) such
      Borrowing Base shall not exceed the amount of the Borrowing Base requested
      by
      the Borrower, (b) such Borrowing Base shall not exceed the Maximum Facility
      Amount, (c) to the extent such Borrowing Base represents an increase in the
      Borrowing Base in effect prior to such Redetermination, such Borrowing Base
      must
      be approved by all Lenders, and (d) to the extent such Borrowing Base represents
      a decrease in the Borrowing Base in effect prior to such Redetermination or
      a
      reaffirmation of 

    
      
        
        

      

      
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such
        prior Borrowing Base, such Borrowing Base must be approved by the Administrative
        Agent and Required Lenders.

    

     

    1.9  Borrowing
      Base.  Article III of the Credit Agreement shall be
      and it hereby is amended by inserting the following at the end of such Article
      as Section 3.07:

     

    Section 3.07.  Additional
      Reductions in Borrowing Base.  Upon the issuance of any Senior
      Notes, the Borrowing Base then in effect shall automatically be reduced by
      $300
      for each $1,000 in stated principal amount of such Senior Notes issued by the
      Borrower.

     

    1.10  Financial
      Statements; Other Information.  Section 6.01(a)
      of the Credit Agreement shall be and it hereby is amended and restated in its
      entirety to read as follows:

     

    (a)  within
      90 days after the end of each fiscal year of the Borrower, the audited
      consolidated balance sheet and related statements of operations, stockholders’
equity and cash flows of the Borrower and its Consolidated Subsidiaries as
      of
      the end of and for such year, setting forth in each case in comparative form
      the
      figures for the previous fiscal year, all reported on by PricewaterhouseCoopers
      L.L.P. or other independent public accountants reasonably acceptable to
      Administrative Agent (without a “going concern” or like qualification or
      exception and without any qualification or exception as to the scope of such
      audit) to the effect that such consolidated financial statements present fairly
      in all material respects the financial condition and results of operations
      of
      the Borrower and its Consolidated Subsidiaries on a consolidated basis in
      accordance with GAAP consistently applied;

     

    1.11  Financial
      Statements; Other Information.  Section 6.01(b)
      of the Credit Agreement shall be and it hereby is amended and restated in its
      entirety to read as follows:

     

    (b)  within
      45 days after the end of each fiscal quarter of the Borrower, the consolidated
      balance sheet and related statements of operations, stockholders’ equity and
      cash flows of the Borrower and its Consolidated Subsidiaries as of the end
      of
      and for such fiscal quarter and the then elapsed portion of the fiscal year,
      setting forth in each case in comparative form the figures for the corresponding
      period or periods of (or, in the case of the balance sheet, as of the end of)
      the previous fiscal year, all certified by one of its Financial Officers as
      presenting fairly in all material respects the financial condition and results
      of operations of the Borrower and its Consolidated Subsidiaries on a
      consolidated basis in accordance with GAAP consistently applied, subject to
      normal year-end audit adjustments and the absence of
      footnotes;

     

    
      1.12  Financial
        Statements; Other Information.  Section 6.01(d)
        of the Credit Agreement shall be and it hereby is amended and restated in
        its
        entirety to read as follows:

       

      (d) 
        Reserved.

       

      1.13  Financial
        Statements; Other Information.  Section 6.01(f)
        of the Credit Agreement shall be and it hereby is amended and restated in
        its
        entirety to read as follows:

       

      (f) 
         for any Sponsored Partnership, upon the written request (or the verbal
        request confirmed in writing within ten days of such verbal request) of the
        Administrative Agent, (A) 

    

     

    
      
        
        

      

      
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 copies
        of any tax returns which such Sponsored Partnership has sent to or filed
        with
        the Internal Revenue Service, and (B) the audited consolidated balance sheet
        and
        related statements of operations, partners’ equity and cash flows of such
        Sponsored Partnership as of the end of any fiscal year, setting forth in
        each
        case in comparative form the figures for the previous fiscal year, as reported
        on by PricewaterhouseCoopers L.L.P. or other independent public accountants
        reasonably acceptable to the Administrative Agent (without a “going concern” or
        like qualification or exception and without any qualification or exception
        as to
        the scope of such audit) to the effect that such consolidated financial
        statements present fairly in all material respects the financial condition
        and
        results of operations of such Sponsored Partnership on a consolidated basis
        in
        accordance with GAAP consistently applied;

    

     

    1.14  Security.  The
      first sentence of Section 6.09 of the Credit Agreement shall be and it
      hereby is amended and restated in its entirety to read as follows:

     

    Section
      6.09.  Security.  The Borrower will, and will cause
      each Restricted Subsidiary to, execute and deliver to the Administrative Agent,
      for the benefit of the Secured Parties, (a) Mortgages in form and substance
      acceptable to the Administrative Agent together with such other assignments,
      conveyances, amendments, agreements and other writings, including, without
      limitation, UCC-1 financing statements (each duly authorized and executed,
      as
      applicable) as the Administrative Agent shall deem necessary or appropriate
      to
      grant, evidence and perfect Liens in Direct Interests having an Engineered
      Value
      equal to or greater than (i) at any time prior to the earlier of the occurrence
      of a Capital Markets Event or December 31, 2007, the Minimum Mortgaged Value
      and
      (ii) at all other times, eighty percent (80%) of the Engineered Value of the
      Direct Interests included in the Borrowing Base Properties and (b) Security
      Agreements in form and substance acceptable to the Administrative Agent together
      with such other assignments, conveyances, amendments, agreements and other
      writings, including, without limitation, UCC-1 financing statements (each duly
      authorized and executed, as applicable) and control agreements as the
      Administrative Agent shall deem necessary or appropriate to grant, evidence
      and
      perfect Liens in the Partnership Interests and certain other personal property
      of the Borrower or such Restricted Subsidiary, as the case may be, subject
      only
      to Permitted Encumbrances and other Liens permitted under Section
      7.02.

    
       

      1.15  Indebtedness.  Section 7.01
        of the Credit Agreement shall be and it hereby is amended by (a) inserting
        the
        following as Section 7.01(i) and (b) relettering the existing
        clauses (i) and (j) of Section 7.01 as clauses (j) and (k)
        respectively:

       

      (i)  Unsecured
        Indebtedness of the Borrower evidenced by unsecured senior notes or unsecured
        senior subordinated notes containing terms and conditions (including, if
        applicable, subordination provisions) acceptable to the Administrative Agent
        and
        the Required Lenders in their sole discretion and in an aggregate principal
        amount not to exceed $250,000,000 (“Senior
        Notes”);

    

    
      
        
        

      

      
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      1.16  Other
        Agents.Article X of the Credit Agreement shall be and it hereby
        is amended by adding the following at the end of the third paragraph of that
        Article:

    

     

    No
      Person identified as a Syndication Agent on Schedule 2.01 or as a Joint Lead
      Arranger, in each case in its respective capacity as such, shall have any
      responsibilities or duties, or incur any liability, under this Agreement or
      the
      other Loan Documents.

     

    1.17  Waivers;
      Amendments. Section 11.02(b) of the
      Credit Agreement shall be and it hereby is amended and restated in its entirety
      to read as follows:

     

    (b)  Neither
      this Agreement nor any provision hereof may be waived, amended or modified
      except pursuant to an agreement or agreements in writing entered into by the
      Credit Parties and the Required Lenders or by the Credit Parties and the
      Administrative Agent with the consent of the Required Lenders; provided
      that no such agreement shall (1) increase the Borrowing Base without the written
      consent of each Lender, (2) increase the Applicable Percentage of any Lender
      or
      the Aggregate Revolving Commitment above the Maximum Facility Amount without
      the
      written consent of such Lender, (3) reduce the principal amount of any Loan
      or
      LC Disbursement or reduce the rate of interest thereon, or reduce any fees
      payable hereunder, without the written consent of each Lender affected thereby,
      (4) postpone the scheduled date of payment of the principal amount of any Loan
      or LC Disbursement, or any interest thereon, or any fees payable hereunder,
      or
      reduce the amount of, waive or excuse any such payment, or postpone the
      scheduled date of expiration of any of the Aggregate Revolving Commitment,
      without the written consent of each Lender affected thereby, (5) change
      Section 2.18(b) or Section 2.18(c) in a manner that would alter the
      pro rata sharing of payments required thereby, without the written consent
      of
      each Lender, (6) release any Credit Party from its obligations under the Loan
      Documents or, except in connection with any sales, transfers, leases or other
      dispositions permitted in Section 7.03, release any of the Collateral
      without the written consent of each Lender, or (7) change any of the provisions
      of this Section or the definition of “Required Lenders” or any other provision
      hereof specifying the number or percentage of Lenders required to waive, amend
      or modify any rights hereunder or make any determination or grant any consent
      hereunder, without the written consent of each Lender;
providedfurther that no such agreement shall amend, modify or
      otherwise affect the rights or duties of the Administrative Agent or the Issuing
      Bank hereunder without the prior written consent of the Administrative Agent
      or
      the Issuing Bank, as the case may be.

    
       

      1.18  Amendment
        to Schedules.  Schedule 2.01, Schedule 4.06 and
Schedule 4.13 of the Credit Agreement shall be and they
        hereby are
        amended in their entirety by substituting Schedule 2.01, Schedule
        4.06 and Schedule 4.13 attached hereto.

       

      SECTION
        2.  New
        Lenders and Reallocation of Revolving Commitments and
        Loans.  The Lenders have agreed among themselves to
        reallocate their respective Applicable Percentages of the Aggregate Revolving
        Commitment and to, among other things, allow certain financial institutions
        identified by J.P. Morgan Securities, Inc., in its capacity as a Joint Lead
        Arranger, in consultation with the Borrower, to become a party to the Credit
        Agreement as a Lender (each, a “New Lender”) by acquiring an interest in
        the Aggregate Revolving Commitment, and Administrative Agent and the Borrower
        hereby consent to such reallocation and each New 

    

    
      
        
        

      

      
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Lender’s
        acquisition of an interest in the Aggregate Revolving Commitment.  On
        the Second Amendment Effective Date and after giving effect to such reallocation
        of the Aggregate Revolving Commitment, the Applicable Percentage of each
        Lender
        shall be as set forth on Schedule 2.01 of this Amendment.  With
        respect to such reallocation, each New Lender shall be deemed to have acquired
        its Revolving Commitment allocated to it from each of the other Lenders pursuant
        to the terms of the Assignment and Assumption attached as Exhibit A
        to the Credit Agreement as if such New Lender and the
        other Lenders had executed an Assignment and Assumption with respect to such
        allocation.  The Borrower and Administrative Agent hereby consent to
        such assignment to the New Lenders.

    

     

    SECTION
      3.  Conditions.  The
      amendments to the Credit Agreement contained in Section 1 of this
      Amendment and the assignment contained in Section 2 of this Amendment
      shall be effective upon the satisfaction of each of the conditions set forth
      in
      this Section 3.

     

    3.1  Execution
      and Delivery.  Each Credit Party, each Lender, including the
      New Lenders, and the Administrative Agent shall have executed and delivered
      this
      Amendment and each other required document, all in form and substance
      satisfactory to the Administrative Agent.

     

    3.2  No
      Default.  No Default shall have occurred and be continuing or
      shall result from effectiveness of this Amendment.

     

    3.3  Fees.  The
      Administrative Agent, the Joint Lead Arrangers and the Sole Bookrunner shall
      have received all fees payable in the amounts and at the times separately agreed
      upon among the Administrative Agent, the Joint Lead Arrangers, the Sole
      Bookrunner and the Borrower.

     

    3.4  Governmental
      Approvals.  All governmental and third party approvals
      necessary or, in the discretion of the Administrative Agent, advisable in
      connection with the financing contemplated by the Credit Agreement, as amended
      to date, and by this Amendment and the continuing operations of the Borrower
      and
      its Subsidiaries shall have been obtained and be in full force and
      effect.

     

    3.5  Unioil
      Guaranty.  The Borrower shall have, and shall have caused
      Unioil to, comply with Sections 6.13 and 6.14 of the Credit
      Agreement with respect to Unioil, including, without limitation, the execution
      and delivery of a Counterpart Agreement in the form of Exhibit C to
      the Credit Agreement.

    
       

      3.6  Authorization
        and Good Standing.  The Administrative Agent shall have
        received such documents and certificates as the Administrative Agent or its
        counsel may reasonably request relating to the organization, existence and
        good
        standing of each Credit Party, the authorization of this Amendment and any
        other
        legal matters relating to the Credit Parties or this Amendment, all in form
        and
        substance satisfactory to the Administrative Agent and its counsel.

       

      3.7  Other
        Documents.  The Administrative Agent shall have received such
        other instruments and documents incidental and appropriate to the transaction
        provided for herein as

    

    
      
        
        

      

      
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 the
        Administrative Agent or its special counsel may reasonably request, and all
        such
        documents shall be in form and substance satisfactory to the Administrative
        Agent.

    

     

    SECTION
      4.  Representations
      and Warranties of Borrower.  To induce the Lenders to enter
      into this Amendment, each Credit Party hereby represents and warrants to the
      Lenders as follows:

     

    4.1  Reaffirmation
      of Representations and Warranties/Further Assurances.  After
      giving effect to the amendments and assignments herein, each representation
      and
      warranty of such Credit Party contained in the Credit Agreement or in any other
      Loan Document is true and correct in all material respects on the Second
      Amendment Effective Date (except to the extent such representations and
      warranties relate solely to an earlier date, in which case they are true and
      correct as of such earlier date).

     

    4.2  Corporate
      Authority; No Conflicts.  The execution, delivery and
      performance by such Credit Party of this Amendment and all documents,
      instruments and agreements contemplated herein are within such Credit Party’s
      corporate or other organizational powers, have been duly authorized by necessary
      action, require no action by or in respect of, or filing with, any court or
      agency of government and do not violate or constitute a default under any
      provision of any applicable law or other agreements binding upon such Credit
      Party or result in the creation or imposition of any Lien upon any of the assets
      of such Credit Party.

     

    4.3  Enforceability.  This
      Amendment constitutes the valid and binding obligation of such Credit Party
      enforceable in accordance with its terms, except as (i) the enforceability
      thereof may be limited by bankruptcy, insolvency or similar laws affecting
      creditor’s rights generally, and (ii) the availability of equitable remedies may
      be limited by equitable principles of general application.

     

    SECTION
      5.  Miscellaneous.

     

    5.1  Reaffirmation
      of Loan Documents and Liens.  Any and all of the terms and
      provisions of the Credit Agreement and the Loan Documents shall, except as
      amended and modified hereby, remain in full force and effect.  Each
      Credit Party hereby agrees that the amendments and modifications herein
      contained shall in no manner affect or impair the liabilities, duties and
      obligations of any Credit Party under the Credit Agreement and the other Loan
      Documents or the Liens securing the payment and performance
      thereof.

    
       

      5.2  Parties
        in Interest.  All of the terms and provisions of this
        Amendment shall bind and inure to the benefit of the parties hereto and their
        respective successors and assigns.

       

      5.3  Legal
        Expenses.  Each Credit Party hereby agrees to pay all
        reasonable fees and expenses of counsel to the Administrative Agent incurred
        by
        the Administrative Agent in connection with the preparation, negotiation
        and
        execution of this Amendment and all related documents.

       

      5.4  Counterparts.  This
        Amendment may be executed in one or more counterparts and by different parties
        hereto in separate counterparts each of which when so executed and

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        
delivered
        shall be deemed an original, but all such counterparts together shall constitute
        but one and the same instrument; signature pages may be detached from multiple
        separate counterparts and attached to a single counterpart so that all signature
        pages are physically attached to the same document.  However, this
        Amendment shall bind no party until each Credit Party, the Lenders (or at
        least
        the required percentage thereof), and the Administrative Agent have executed
        a
        counterpart.  Delivery of photocopies of the signature pages to this
        Amendment by facsimile or electronic mail shall be effective as delivery
        of
        manually executed counterparts of this Amendment.

    

     

    5.5  Complete
      Agreement.  THIS AMENDMENT, THE CREDIT AGREEMENT, AND THE
      OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND
      MAY
      NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS
      OF
      THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
      PARTIES.

     

    5.6  Headings.  The
      headings, captions and arrangements used in this Amendment are, unless specified
      otherwise, for convenience only and shall not be deemed to limit, amplify or
      modify the terms of this Amendment, nor affect the meaning thereof.

     

    [Remainder
      of Page Intentionally Blank.  Signature Pages
      Follow.]

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have caused this Second Amendment to
      Amended and Restated Credit Agreement to be duly executed as of the date first
      above written.

    

      
        	
                BORROWER:

                 

              
	
                PETROLEUM
                  DEVELOPMENT CORPORATION

              
	 
	
                By:

              	
                /s/
                  Richard W. McCullough

              
	
                Name:

              	
                Richard
                  W. McCullough

              
	
                Title:

              	
                Chief
                  Financial Officer

              
	 	 
	
                GUARANTORS:

              
	 
	
                RILEY
                  NATURAL GAS COMPANY

              
	 
	
                By:

              	
                 /s/
                  Thomas E. Riley

              
	
                Name:

              	
                Thomas
                  E. Riley

              
	
                Title:

              	
                President

              
	 	 
	
                UNIOIL

              	 
	 	 
	
                By:

              	
                 /s/
                  Thomas E. Riley

              
	
                Name:

              	
                Thomas
                  E. Riley

              
	
                Title:

              	
                President

              

      

     

     

    

    
      
              

                     
      

                  Signature
            Page      
    

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
                 JPMORGAN
                  CHASE BANK, N.A. (successor by merger to Bank One, N.A.
                  (Illinois)), individually and as Administrative Agent,

              
	 
	
                By:

              	
                /s/ Jo
                  Linda Papadakis

              
	
                Name:

              	
                Jo
                  Linda Papadakis

              
	
                Title:

              	
                Vice
                  President

              

      

     

    
 

    
      
              

                    
      

                  Signature
            Page      
    

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    

      
        	
                BNP
                  PARIBAS,

              
	
                as
                  a Lender and as Syndication Agent

              
	 	 
	
                By:

              	
                /s/
                  Douglas R. Liftman

              
	
                Name:

              	
                Douglas
                  R. Liftman

              
	
                Title:

              	 Managing
                Director
	 	 
	 	 
	
                By:

              	
                /s/
                  Betsy Jocher    

              
	
                Name:

              	 Betsy
                Jocher
	
                Title:

              	 Director

      

     

     

    
      
              

                  
      

                  Signature
            Page      
    

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              WACHOVIA
                BANK, N.A., as a Lender

            
	 
	 	 
	
              By:

            	
              /s/
                Jay Buckman

            
	 	
              Jay
                Buckman, Vice
                President

            

    

    
      
              

                  
      

                  Signature
            Page      
    

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              GUARANTY
                BANK, FSB, as a Lender

            
	 	 
	
              By:

            	 /s/
              Kelly L. Elmore III
	
              Name:

            	 Kelly
              L. Elmore III
	
              Title:

            	 Senior
              Vice President

    

     

     

    

    
      
              

                  
      

                  Signature
            Page      
    

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
                BANK
                  OF OKLAHOMA, as a Lender

              
	 
	 	 
	
                By:

              	/s/  Lindsay
                Sherrer    
	
                Name:

              	 Lindsay
                Sherrer 
	
                Title:

              	 Vice
                President

      

      

     

     

    

    
      
              

                  
      

                  Signature
            Page      
    

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              MORGAN
                STANLEY BANK, as a Lender

            
	 
	
              By:

            	 /s/
              Daniel Twenge
	
              Name:

            	 Daniel
              Twenge
	
              Title:

            	 Authorized
              Signatory

    

    

       

     

    

    
      
              

                  
      

                  Signature
            Pageex10_1.htm

                                                                                                       Exhibit
      10.1        

                                                                                                                                                                                                                                                                      CONFIDENTIAL
      TREATMENT       

    Supplemental
      Agreement No. 54

    

    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 July 17, 2007, 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,
      Buyer has agreed to the following changes to the Contract Delivery Month of
      certain four (4) Block T-W-2a Firm Aircraft (Four Firm Aircraft):

    

    Was                                       New

    ***                                       ***

    

    and;

    

    WHEREAS,
      Buyer has agreed to exercise certain twenty-five (25) Option Aircraft into
      Firm
      Aircraft (Block T-W-2 Aircraft) scheduled for delivery in the Contract Delivery
      Month as follows (Twenty-Five Firm Aircraft):

    

    ***
      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-54-1

      

      
        K/SWA

        
          

        

      

      
        
        

      

    

    

    Was
      -
      Option                                                 New
      - Firm

    ***                                       ***

    

    and;

    

    WHEREAS,***;

    

    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 and is incorporated into the Agreement
                by
                this reference.

            

    

     

    
      	
              3.  

            	
              Table
                2 is deleted in its entirety and replaced by a new Table 2 which
                is
                attached hereto and is incorporated into the Agreement by this
                reference.

            

    

     

    4.       Letter
      Agreement No. 6-1162-JMG-669R7 entitled *** is replaced and
      superseded by Letter Agreement No. 6-1162-JMG-669R8 attached
      hereto.

    

    5.      All
      references in the Letter Agreements associated with Purchase Agreement No.
      1810
      shall be deemed to refer to the purchase by Buyer of four hundred (400) Model
      737-7H4 Aircraft, eighty-six (86) Model 737-7H4 Option Aircraft and fifty-four
      (54) Model 737-7H4 Purchase Right Aircraft, to the extent such reference is
      not
      specifically addressed herein.

    

    Upon
      execution of this Supplemental Agreement on or before July 31, 2007, Boeing
      will
      return to Buyer *** which are advance payments for the Four
      Firm Aircraft paid by Buyer less advance payments due on the Twenty-Five 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:
                /s/ Nobuko Wiles

            	
              By:/s/
                Laura Wright

            
	 	 
	
              Its:    Attorney-In-Fact

            	
              Its:SVP
                Finance & CFO

            

    

    

    

    
      
        P.A.  No. 
1810                             SA-54-2

      

      
        K/SWA

        
          

        

      

      
        
        

      

    

    
 

    

    

    TABLE
      OF
      CONTENTS

    

    

    
      	 	 	
              Page

            	
              SA

            
	 	 	
              Number

            	
              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                                                                                                       
SA-54

      

      
        K/SWA

        
          

        

      

      
        
        

      

    

    

    

    TABLE
      OF
      CONTENTS CON'T

    

    

    
      	 	 	
              SA

            
	 	 	
              Number

            
	 	 	 
	
              TABLE

            	 	 
	 	 	 
	
              1.

            	
              Aircraft
                Information Table

            	
              SA-54

            
	 	 	 
	
              2.

            	
              Option
                Aircraft Information Table

            	
              SA-54

            

    

    

    
      	
               

            	
              EXHIBITS

            

    

    

    

    
      	
              A

            	
              Aircraft
                Configuration

            	 	
              SA-47

            
	 	 	 	 
	
              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                                                                                                       
SA-54

      

      
        K/SWA

        
          

        

      

      
        
        

      

    

    

    

    

    

    TABLE
      OF
      CONTENTS CON'T

    

    
      	 	 	
              SA

            
	 	 	
              Number

            
	
              RESTRICTED
                LETTER AGREEMENTS

            	 
	 	 	 
	 	 	 
	
              6-1162-RLL-932R2

            	
              Promotional
                Support

            	
              SA-13

            
	 	 	 
	
              6-1162-RLL-933R20

            	
              Option
                Aircraft

            	
              SA-47

            
	 	 	 
	
              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
                                                                                                       
SA-54

      

      
        K/SWA

        
          

        

      

      
        
        

      

    

    

    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

            

    

    

    

    

    

    
      
        P.A.  No. 
1810                                                                                                 
iv                                                                                                       
SA-54

      

      
        K/SWA

        
          

        

      

      
        
        

      

    

    

     

    Table
      1 to

    Purchase
      Agreement No. 1810

    Aircraft
      Information Table

    
      	 	 	
              Base
                Aircraft Price

            	
              Special
                Features

            	
              Aircraft
                Basic Price

            	
              Base
                Year Dollars

            
	
              Block
                A, B, C, D & E Aircraft

            	
              ***

            	
              ***

            	
              ***

            	
              July
                1992

            
	
              Block
                F & G Aircraft

            	
              ***

            	
              ***

            	
              ***

            	
              July
                1992

            
	
              Block
                H Aircraft

            	
              ***

            	
              ***

            	
              ***

            	
              July
                1992

            
	
              Block
                I Aircraft

            	
              ***

            	
              ***

            	
              ***

            	
              July
                1992

            
	
              Block
                J Aircraft

            	
              ***

            	
              ***

            	
              ***

            	
              July
                1992

            
	
              Block
                K Aircraft

            	
              ***

            	
              ***

            	
              ***

            	
              July
                1992

            
	
              Block
                K-W Aircraft

            	
              ***

            	
              ***

            	
              ***

            	
              July
                1992

            
	
              Block
                L Aircraft

            	
              ***

            	
              ***

            	
              ***

            	
              July
                1992

            
	
              Block
                T Aircraft

            	
              ***

            	
              ***

            	
              ***

            	
              July
                1999

            
	
              Block
                T-W Aircraft

            	
              ***

            	
              ***

            	
              ***

            	
              July
                1999

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

            	
              ***

            	
              ***

            	
              ***

            	
              July
                1999

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

            	
              ***

            	
              ***

            	
              ***

            	
              July
                1999

            
	 	 	 	 	 	 
	
              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 becomes Firm
                Aircraft
                after signing of SA-47 and

            	 
	
              Firm
                Aircaft contracted to deliver in July 2008 and on at the signing
                of SA47
                --

            	 	 
	
              (T-W-2a
                Aircraft -- Advance Payment Schedule per LA
                6-1162-JGM-669)

            	 	 

    

    

    
 

    
      
        SWA                                                                                                             
Page
          1                                                                                                  
SA-54

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Table
      1 to

    Purchase
      Agreement No. 1810

    Aircraft
      Information Table

    
      	 	 	 	
              Escalation
                Estimate

            	 
	
              Delivery

            	
              Number
                of

            	
              Aircraft

            	
              Adv
                Payment Base

            	 
	
              Date

            	
              Aircraft

            	
              Block

            	
              Price
                Per A/P

            	
              Serial
                Number

            
	
              Dec-2000

            	
              2

            	
              E

            	
              ***

            	 
	
              Jan-2001

            	
              1

            	
              E

            	
              ***

            	 
	
              Feb-2001

            	
              1

            	
              E

            	
              ***

            	 
	
              Mar-2001

            	
              2

            	
              E

            	
              ***

            	 
	
              Jun-2001

            	
              3

            	
              E

            	
              ***

            	 
	
              Sep-2001

            	
              3

            	
              E

            	
              ***

            	 
	
              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

            	
              ***

            	 
	
              Mar-2000

            	
              1

            	
              H

            	
              ***

            	 
	
              Apr-2000

            	
              2

            	
              H

            	
              ***

            	 
	
              Sep-2000

            	
              1

            	
              H

            	
              ***

            	 
	
              Oct-2000

            	
              2

            	
              H

            	
              ***

            	 
	
              Mar-2001

            	
              2

            	
              H

            	
              ***

            	 
	
              Apr-2001

            	
              1

            	
              H

            	
              ***

            	 
	
              Oct-2001

            	
              3

            	
              H

            	
              ***

            	 
	
              Nov-2001

            	
              2

            	
              I

            	
              ***

            	 
	
              Dec-2001

            	
              1

            	
              I

            	
              ***

            	 
	
              Jan-2002

            	
              1

            	
              I

            	
              ***

            	 
	
              Mar-2002

            	
              4

            	
              I

            	
              ***

            	 
	
              Apr-2002

            	
              2

            	
              I

            	
              ***

            	 
	
              Dec-2002

            	
              2

            	
              I

            	
              ***

            	 
	
              May-2003

            	
              1

            	
              I

            	
              ***

            	 
	
              Jun-2003

            	
              2

            	
              I

            	
              ***

            	 
	
              Jul-2003

            	
              1

            	
              I

            	
              ***

            	 
	
              Aug-2003

            	
              1

            	
              I

            	
              ***

            	 
	
              Sep-2003

            	
              3

            	
              I

            	
              ***

            	 
	
              Nov-2002

            	
              1

            	
              J

            	
              ***

            	 
	
              Dec-2002

            	
              1

            	
              J

            	
              ***

            	 
	
              Nov-2003

            	
              2

            	
              J

            	
              ***

            	 
	
              Dec-2003

            	
              2

            	
              J

            	
              ***

            	 
	
              Mar-2004

            	
              1

            	
              J

            	
              ***

            	 
	
              Mar-2004

            	
              1

            	
              K

            	
              ***

            	 
	
              Apr-2004

            	
              3

            	
              K

            	
              ***

            	 
	
              May-2004

            	
              1

            	
              K

            	
              ***

            	 
	
              Jun-2004

            	
              2

            	
              K

            	
              ***

            	 
	
              Jul-2004

            	
              2

            	
              K

            	
              ***

            	 
	
              Sep-2004

            	
              1

            	
              K-W

            	
              ***

            	 

    

    

    
 

    
      
        SWA                                                                                                             
Page 2                                                                                                  
SA-54

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Table
      1 to

    Purchase
      Agreement No. 1810

    Aircraft
      Information Table

    
      	
              Oct-2004

            	
              4

            	
              K-W

            	
              ***

            	 
	
              Oct-1999

            	
              1

            	
              L

            	
              ***

            	 
	
              Nov-1999

            	
              2

            	
              L

            	
              ***

            	 
	
              Dec-1999

            	
              1

            	
              L

            	
              ***

            	 
	
              Jun-2000

            	
              3

            	
              L

            	
              ***

            	 
	
              Jul-2000

            	
              3

            	
              L

            	
              ***

            	 
	
              Sep-2000

            	
              1

            	
              L

            	
              ***

            	 
	
              Oct-2000

            	
              1

            	
              L

            	
              ***

            	 
	
              Nov-2000

            	
              4

            	
              L

            	
              ***

            	 
	
              Dec-2000

            	
              1

            	
              L

            	
              ***

            	 
	
              Jan-2001

            	
              1

            	
              L

            	
              ***

            	 
	
              Feb-2001

            	
              1

            	
              L

            	
              ***

            	 
	
              Jul-2001

            	
              1

            	
              L

            	
              ***

            	 
	
              Sep-2001

            	
              1

            	
              L

            	
              ***

            	 
	
              Oct-2001

            	
              1

            	
              L

            	
              ***

            	 
	
              Mar-2003

            	
              2

            	
              L

            	
              ***

            	 
	
              Jul-2003

            	
              1

            	
              L

            	
              ***

            	 
	
              Aug-2003

            	
              2

            	
              L

            	
              ***

            	 
	
              Nov-2001

            	
              1

            	
              T

            	
              ***

            	 
	
              Feb-2002

            	
              1

            	
              T

            	
              ***

            	 
	
              Jan-2004

            	
              2

            	
              T

            	
              ***

            	 
	
              Feb-2004

            	
              1

            	
              T

            	
              ***

            	 
	
              Apr-2004

            	
              3

            	
              T

            	
              ***

            	 
	
              May-2004

            	
              1

            	
              T

            	
              ***

            	 
	
              Jun-2004

            	
              6

            	
              T

            	
              ***

            	 
	
              Jul-2004

            	
              2

            	
              T

            	
              ***

            	 
	
              Aug-2004

            	
              6

            	
              T-W

            	
              ***

            	 
	
              Sep-2004

            	
              4

            	
              T-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

            	
              ***

            	 

    

    

    

    
      
        SWA                                                                                                             
Page 3                                                                                                  
SA-54

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Table
      1 to

    Purchase
      Agreement No. 1810

    Aircraft
      Information Table

    
      	
              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

            	
              2

            	
              T-W-1

            	
              ***

            	 
	
              Oct-2007

            	
              1

            	
              T-W-1a

            	
              ***

            	
              36613

            
	
              Nov-2007

            	
              2

            	
              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

            	
              ***

            	 
	
              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-2

            	
              ***

            	
              36891

            
	
              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

            	
              ***

            	 

    

    

     

    
      
        SWA                                                                                                             
Page 4                                                                                                  
SA-54

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Table
      1 to

    Purchase
      Agreement No. 1810

    Aircraft
      Information Table

    
      	
              Mar-2009

            	
              2

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Apr-2009

            	
              2

            	
              T-W-2a

            	
              ***

            	
               

            
	
              May-2009

            	
              2

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Jun-2009

            	
              2

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Jul-2009

            	
              2

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Aug-2009

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Sep-2009

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Oct-2009

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Nov-2009

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Dec-2009

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Jan-2010

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Feb-2010

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Mar-2010

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Apr-2010

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              May-2010

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Jun-2010

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Jul-2010

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Aug-2010

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Sep-2010

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Oct-2010

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Jan-2011

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Feb-2011

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Mar-2011

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Apr-2011

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              May-2011

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Jun-2011

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Jul-2011

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Aug-2011

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Sep-2011

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Oct-2011

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Jan-2012

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Feb-2012

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Mar-2012

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Apr-2012

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              May-2012

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Jun-2012

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Jul-2012

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Aug-2012

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Sep-2012

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Oct-2012

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Jan-2013

            	
              2

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Feb-2013

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Mar-2013

            	
              1

            	
              T-W-2a

            	
              ***

            	
               

            
	
              Mar-2013

            	
              1

            	
              T-W-2

            	
              ***

            	
               

            
	
              Apr-2013

            	
              1

            	
              T-W-2

            	
              ***

            	
               

            
	
              May-2013

            	
              1

            	
              T-W-2

            	
              ***

            	
               

            
	
              Jun-2013

            	
              2

            	
              T-W-2

            	
              ***

            	
               

            
	
              Jul-2013

            	
              1

            	
              T-W-2

            	
              ***

            	
               

            

    

    

    

    

    
      
        SWA                                                                                                             
Page 5                                                                                                  
SA-54

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Table
      1 to

    Purchase
      Agreement No. 1810

    Aircraft
      Information Table

    
      	
              Aug-2013

            	
              2

            	
              T-W-2

            	
              ***

            	
               

            
	
              Sep-2013

            	
              2

            	
              T-W-2

            	
              ***

            	
               

            
	
              Oct-2013

            	
              2

            	
              T-W-2

            	
              ***

            	
               

            
	
              Nov-2013

            	
              1

            	
              T-W-2

            	
              ***

            	
               

            
	
              Dec-2013

            	
              2

            	
              T-W-2

            	
              ***

            	
               

            
	
              Jan-2014

            	
              1

            	
              T-W-2

            	
              ***

            	
               

            
	
              Feb-2014

            	
              1

            	
              T-W-2

            	
              ***

            	
               

            
	
              Mar-2014

            	
              1

            	
              T-W-2

            	
              ***

            	
               

            
	
              Apr-2014

            	
              1

            	
              T-W-2

            	
              ***

            	
               

            
	
              May-2014

            	
              1

            	
              T-W-2

            	
              ***

            	
               

            
	
              Jun-2014

            	
              1

            	
              T-W-2

            	
              ***

            	
               

            
	
              Jul-2014

            	
              1

            	
              T-W-2

            	
              ***

            	
               

            
	
              Aug-2014

            	
              1

            	
              T-W-2

            	
              ***

            	
               

            
	
              Sep-2014

            	
              1

            	
              T-W-2

            	
              ***

            	
               

            
	
              Oct-2014

            	
              1

            	
              T-W-2

            	
              ***

            	
               

            

    

    

    

    

    
      
        SWA                                                                                                             
Page 6                                                                                                  
SA-54

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    

    Table
      2 to Purchase Agreement No. 1810

    (Letter
      Agreement No. 6-1162-RLL-933R20)

    Option
      Aircraft Information Table

    
      	
              Price
                Description of Option Aircraft:

            	 	 	 
	 	 	
              Base
                Aircraft Price

            	
              Special
                Features

            	
              Aircraft
                Basic Price

            	
              Base
                Year Dollars

            
	
              Block
                U Option Aircraft

            	
              ***

            	
              ***

            	
              ***

            	
              July
                1999

            
	
              (without
                Winglets)

            	 	 	 	 
	
              Block
                U-W Option Aircraft

            	
              ***

            	
              ***

            	
              ***

            	
              July
                1999

            
	
              (with
                Winglets)

            	 	 	 	 
	
              Block
                U-W-1 Option Aircraft

            	
              ***

            	
              ***

            	
              ***

            	
              July
                1999

            
	 	 	 	 	 	 
	 	 	 	 	 	 
	
              Delivery
                of Purchase Right Aircraft:

            	
              Quantity

            	
              54

            	 
	
              Delivery
                Period of Purchase Right Aircraft:

            	
              Complete
                delivery not later than Dec. 31, 2014

            
	
              Condition
                of Offer for Purchase Right Aircraft:

            	
              Subject
                to Available Position

            	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
              Remaining
                Option Aircraft:

            	 	
              86

            	 	 

    

    
 

     

    
      
        SWA                                                                                                             
Page
          1                                                                                                  
SA-54

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

      Table
        2 to Purchase Agreement No. 1810

      (Letter
        Agreement No. 6-1162-RLL-933R20)

      Option
        Aircraft Information Table

    

    

    
      	
              Aircraft

            	
              Number
                of

            	
              Option

            	
              Adv
                Payment Base

            	
               

            
	
              Delivery

            	
              Option

            	
              Aircraft

            	
              Price
                Per

            	
               

            
	
              Mo.
                & Yr.

            	
              Aircraft

            	
              Block

            	
              Option
                Aircraft

            	
              Option
                Exercise

            
	
              Apr-2009

            	
              2

            	
              U-W-1

            	
              ***

            	
              December
                3, 2007

            
	
              May-2009

            	
              1

            	
              U-W-1

            	
              ***

            	
              January
                1, 2008

            
	
              Jun-2009

            	
              1

            	
              U-W-1

            	
              ***

            	
              February
                1, 2008

            
	
              Jul-2009

            	
              2

            	
              U-W-1

            	
              ***

            	
              March
                3, 2008

            
	
              Aug-2009

            	
              1

            	
              U-W-1

            	
              ***

            	
              April
                1, 2008

            
	
              Oct-2009

            	
              1

            	
              U-W-1

            	
              ***

            	
              June
                2, 2008

            
	
              Nov-2009

            	
              1

            	
              U-W-1

            	
              ***

            	
              July
                1, 2008

            
	
              Dec-2009

            	
              1

            	
              U-W-1

            	
              ***

            	
              August
                1, 2008

            
	
              Jan-2010

            	
              1

            	
              U-W-1

            	
              ***

            	
              September
                1, 2008

            
	
              Feb-2010

            	
              1

            	
              U-W-1

            	
              ***

            	
              October
                1, 2008

            
	
              Mar-2010

            	
              1

            	
              U-W-1

            	
              ***

            	
              November
                3, 2008

            
	
              Apr-2010

            	
              1

            	
              U-W-1

            	
              ***

            	
              December
                1, 2008

            
	
              May-2010

            	
              2

            	
              U-W-1

            	
              ***

            	
              January
                1, 2009

            
	
              Jun-2010

            	
              3

            	
              U-W-1

            	
              ***

            	
              February
                2, 2009

            
	
              Jul-2010

            	
              2

            	
              U-W-1

            	
              ***

            	
              March
                2, 2009

            
	
              Aug-2010

            	
              2

            	
              U-W-1

            	
              ***

            	
              April
                1, 2009

            
	
              Sep-2010

            	
              2

            	
              U-W-1

            	
              ***

            	
              May
                1, 2009

            
	
              Oct-2010

            	
              3

            	
              U-W-1

            	
              ***

            	
              June
                1, 2009

            
	
              Nov-2010

            	
              3

            	
              U-W-1

            	
              ***

            	
              July
                1, 2009

            
	
              Dec-2010

            	
              3

            	
              U-W-1

            	
              ***

            	
              August
                3, 2009

            
	
              Jan-2011

            	
              1

            	
              U-W-1

            	
              ***

            	
              September
                1, 2009

            
	
              Feb-2011

            	
              2

            	
              U-W-1

            	
              ***

            	
              October
                1, 2009

            
	
              Mar-2011

            	
              1

            	
              U-W-1

            	
              ***

            	
              November
                2, 2009

            
	
              Apr-2011

            	
              1

            	
              U-W-1

            	
              ***

            	
              December
                1, 2009

            
	
              May-2011

            	
              2

            	
              U-W-1

            	
              ***

            	
              January
                1, 2010

            
	
              Jun-2011

            	
              2

            	
              U-W-1

            	
              ***

            	
              February
                1, 2010

            
	
              Jul-2011

            	
              2

            	
              U-W-1

            	
              ***

            	
              March
                1, 2010

            
	
              Aug-2011

            	
              2

            	
              U-W-1

            	
              ***

            	
              April
                1, 2010

            
	
              Sep-2011

            	
              2

            	
              U-W-1

            	
              ***

            	
              May
                3, 2010

            
	
              Oct-2011

            	
              2

            	
              U-W-1

            	
              ***

            	
              June
                1, 2010

            
	
              Nov-2011

            	
              3

            	
              U-W-1

            	
              ***

            	
              July
                1, 2010

            
	
              Dec-2011

            	
              2

            	
              U-W-1

            	
              ***

            	
              August
                2, 2010

            
	
              Jan-2012

            	
              3

            	
              U-W-1

            	
              ***

            	
              September
                1, 2010

            
	
              Feb-2012

            	
              3

            	
              U-W-1

            	
              ***

            	
              October
                1, 2010

            
	
              Mar-2012

            	
              2

            	
              U-W-1

            	
              ***

            	
              November
                1, 2010

            
	
              Apr-2012

            	
              3

            	
              U-W-1

            	
              ***

            	
              December
                1, 2010

            
	
              May-2012

            	
              3

            	
              U-W-1

            	
              ***

            	
              January
                3, 2011

            
	
              Jun-2012

            	
              3

            	
              U-W-1

            	
              ***

            	
              February
                1, 2011

            
	
              Jul-2012

            	
              2

            	
              U-W-1

            	
              ***

            	
              March
                1, 2011

            
	
              Aug-2012

            	
              2

            	
              U-W-1

            	
              ***

            	
              April
                1, 2011

            
	
              Sep-2012

            	
              2

            	
              U-W-1

            	
              ***

            	
              May
                2, 2011

            
	
              Oct-2012

            	
              2

            	
              U-W-1

            	
              ***

            	
              June
                1, 2011

            
	
              Nov-2012

            	
              3

            	
              U-W-1

            	
              ***

            	
              July
                1, 2011

            
	
              Dec-2012

            	
              2

            	
              U-W-1

            	
              ***

            	
              August
                1, 2011

            
	
              Total

            	
              86

            	 	 	 

    

    

    

    

    

    
      
        SWA                                                                                                             
Page 2                                                                                                  
SA-54

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

                                                                                                                                                                The
      Boeing Company

                                                                                                                                                                   
P.O.
      Box
      3707

                                                                                                                                                                
   Seattle,
      WA 98124-220

     

    

    

    

    

    

    

    6-1162-JMG-669R8

    

    

    Southwest
      Airlines Co.

    P.O.
      Box
      36611 - Love Field

    Dallas,
      Texas  75235

    

    
      	
              Subject:

            	
              ***

            

    

     

    

    

    This
      Letter Agreement amends Purchase Agreement No. 1810 dated as of January 19,
      1994 (the Agreement) between The Boeing Company (Boeing) and Southwest Airlines
      Co. (Buyer) relating to Model 737 aircraft:

    1)
      ***

    2)
      ***

    All
      terms
      used and not defined herein will have the same meaning as in the
      Agreement.

    1.           ***

    2.           ***

    3.           ***

    4.           ***

    5.           ***

    6.           ***

    7.           ***

    8.           ***

    9.           ***

    10.         ***

    11.         ***

    12.         ***

    13.         ***

    14.         ***

    

    15.           Confidential
      Treatment.

    

    Buyer
      understands that certain commercial and financial information contained in
      this
      Letter Agreement including any attachments hereto is considered by Boeing as
      confidential.  Buyer agrees that it will treat this Letter Agreement
      and the information contained herein as confidential and will not, without
      the
      prior written consent of Boeing, disclose this Letter Agreement or any
      information contained herein to any other person or entity except as provided
      in
      Letter Agreement No. 6-1162-RLL-934, as amended.

     

     

    
      
        P.A.  No. 
1810                                                                                                                                                                                                          
SA-54

      

      
        K/SWA

        
          

        

      

      
        
          Southwest
            Airlines Co.

          6-1162-JMG-669R8

        

      

    

     

    Very
      truly yours,

    

    
      	
              THE
                BOEING COMPANY

            
	 
	 
	 
	
              By:
                /s/ Nobuko Wiles

            
	 
	
              Its:    Attorney-In-Fact

            

    

    

     

    ACCEPTED
      AND AGREED TO this

    

    date:
      July 17, 2007

    

    
      	
              SOUTHWEST
                AIRLINES CO.

            
	 
	 
	 
	
              By:/s/
                Scott Topping

            
	 
	
              Its:VP
                Treasurer

            

    

    

    

    
 

    
      
        P.A.  No. 
1810                                                                                                                                                                                                          
SA-54

      

      
        K/SWA

        
          

        

      

      
        
          Southwest
            Airlines Co.

          Attachment
            A to 6-1162-JMG-669R8

        

      

    

    ***

    

    

    
      
        P.A.  No. 
1810                                                                                                                                                                                                          
SA-54

      

      
        K/SWA

        
          

        

      

      
        
          Southwest
            Airlines Co.

          Attachment B
            to 6-1162-JMG-669R8

        

      

    

    

    ***

    

     

     

    
      
        P.A.  No. 
1810                                                                                                                                                                                                          
SA-54

      

      
        K/SWA

        
          

        

      

      
        
          Southwest
            Airlines Co.

          Attachment C
            to 6-1162-JMG-669R8

          3400MK3098

        

      

    

     

    Southwest
      Airlines
      Co.                                                                                                                                       
                 Project
      ID:                                      
48667 

                                                                                                                                                                                            Change
      No.                          
3400MK3098

                                                                                                                                                                                            Dated:                                  July
      16,
      2007

     

    
      	
              Model:

            	
              737-300/-500

            

    

    

    
      	
              Project
                Title:

            	
              AVIONICS
                UPGRADE - SECOND FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) AND INSTALLATION
                AND ACTIVATION OF DUAL GLOBAL POSITIONING SYSTEM SENSOR (GPSS) -
                PHASE
                I

            

    

    

    
      	
               

            	
              Description
                of Change:

            

    

    
      	
               

            	
              BACKGROUND:

            

    

    
      	
               

            	
              This
                effort shall be accomplished in two
                phases:

            

    

     Phase
      I - Second FMC installation and installation and activation of dual GPSS. No
      Required Navigation Performance Special Aircraft and Aircrew Authorization
      Required (RNP/SAAAR) capability will be provided during this phase.

    

    
      	
               

            	
              Phase
                II - Installation of Large Area Displays with activation of
                RNP/SAAAR.

            

    

    

    
      	
               

            	
              Each
                phase will be independently accomplished with a FAA certification
                and
                Service Bulletin at the completion of each
                phase.

            

    

    

    
      	
               

            	
              PHASE
                I REQUIREMENTS

            

    

    
      	
               

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

            

    

    

    A.
      REVIEW
      SOUTHWEST AIRLINES (SWA) SUPPLEMENTAL TYPE CERTIFICATES (STCs) TO DETERMINE
      ACCEPTABILITY FOR REFERENCE UNDER BOEING TYPE DESIGN

    

    1.0
      CUSTOMER INFORMATION

    

    1.1
      Contracting Party: Southwest Airlines (SWA)

    

    1.2
      Requesting Party: Boeing Technical Services & Modifications Avionics
      Business Unit

    

    2.0
      PROJECT BACKGROUND

    

    Southwest
      Airlines (SWA) is interested in implementing RNP/SAAAR and make the
      flight-instrument panel look like the 737-NG for their 737 fleet.

    

    3.0
      STATEMENT OF WORK

    

    3.1
      Boeing will review customer provided data on LRU locations, installed by STCs
      in
      order to avoid any conflict or interference with the Boeing design.

    

    3.2
      Boeing Deliverables to Customer:

    The
      deliverables from this effort will be any findings that will affect the
      implementation of the enclosed work-statement.  The findings will be
      communicated to the customer, Southwest Airlines.

    

    3.3
      Customer is responsible for delivery of all data on LRU locations installed
      by
      STCs that may impact the areas of change.  Also, the Customer will be
      responsible for the re-certification of any impacted STC as a result of the
      modification installations.

    

    
 

    
      
        P.A.  No. 
1810                                                                                                                                                                                                          
SA-54

      

      
        K/SWA

        
          

        

      

      
        
          Southwest
            Airlines Co.

          Attachment C
            to 6-1162-JMG-669R8

          3400MK3098

        

      

    

    

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

    B.
      NAVIGATION - DUAL FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) -
      INSTALLATION

    

    ***

    

    EQUIPMENT
      NOTES:

    

    ***

    

    PREREQUISITE
      NOTES

    

    ***

    

    ASSUMPTIONS
      NOTES

    

    :***

    

    C.
      FLIGHT
      MANAGEMENT COMPUTER SYSTEM (FMCS) - GPS ENABLE - FEATURE ACTIVATION

    

    ***

    

    PREREQUISITE
      NOTES

    

    ***

    

    ASSUMPTIONS
      NOTES:

    

    ***

    

    D.
      DUAL
      GPSS – ROCKWELL COLLINS GPSS P/N 822-2189-001 – INSTALLATION

    

    ***

    

    EQUIPMENT
      NOTES:

    

    ***

    

    PREREQUISITE
      NOTES:

    

    ***

    

    ASSUMPTIONS
      NOTES:

    

    **

    

    *E.
      PROGRAM INTEGRATED AIRPLANE TEST, VALIDATION, & CERTIFICATION

    

    ***

    

    REMOTE
      CERTIFICATION NOTES:

    

    ***

    

    
      
        P.A.  No. 
1810                                                                                                                                                                                                          
SA-54

      

      
        K/SWA

        
          

        

      

      
        
          Southwest
            Airlines Co.

          Attachment C
            to 6-1162-JMG-669R8

          3400MK3098

        

      

    

     

    Special
      Notes:

    Additional
      feature activation requires separate projects.

    

    Additional
      Project Estimating Notes:

    

    The
      following projects are listed to help with estimating this project.

    

    TECHNICAL
      SERVICES AGREEMENT - REVIEW SOUTHWEST AIRLINES (SWA) SUPPLEMENTAL TYPE
      CERTIFICATES (STCs) TO DETERMINE ACCEPTABILITY FOR REFERENCE UNDER BOEING TYPE
      DESIGN (ref PID-26454)

    

    NAVIGATION
      - DUAL FLIGHT MANAGEMENT COMPUTER SYSTEM (FMCS) - LEAN GLOBAL ENTERPRISE -
      INSTALLATION SUPPORTING RNAV & RNAV (GPS) OPERATIONAL CAPABILITY (ref
      PID-43332)

    

    FLIGHT
      MANAGEMENT COMPUTER SYSTEM (FMCS) - GPS ENABLE - FEATURE ACTIVATION (PID-
      47210)

    

    DUAL
      GNSSU - HONEYWELL KGS 200 - INSTALLATION – CERTIFICATION (PID-
      43333)

    

    LARGE
      AREA DISPLAY SYSTEM - SMITHS INDUSTRIES - INSTALLATION OF BFE SMART DISPLAY
      UNITS (DUAL CHANNEL) ON NON-EFIS AIRPLANES, INTEGRATED STANDBY FLIGHT DISPLAY
      (ISFD) (ref PID-26496)

    

    FLIGHT
      MANAGEMENT COMPUTER SYSTEM - (RNP/SAAAR, GLS CAT I & IAN) - IMPLEMENTATION
      AND CERTIFICATION (ref PID-26501)

    

    PROGRAM
      INTEGRATED AIRPLANE TEST, VALIDATION, & CERTIFICATION (ref
      PID-26529)

    

    Material/Equipment
      List:

    

    Similar
      To                      Part
      Number                                                        
CAT             
Part
      Qty                                Part
      Description                                                      Supplier
      Name

    
      	 	
              S242A600-1001

            	
              BFE

            	
              1

            	
              CDU

            	 
	 	
              10-62225-003

            	
              BFE

            	
              1

            	
              FMC

            	 
	 	
              TBD

            	
              BFE

            	
              1

            	
              WXR
                Control Panel

            	 
	 	
              822-2189-001

            	
              BFE

            	
              2

            	
              GNS
                4000S

            	 
	 	
              822-2033-001

            	
              BFE

            	
              2

            	
              GNS
                ANTENNA

            	 
	 	
              69-73713-17

            	
              BFE

            	
              1

            	
              Mode
                Select Panel

            	 
	 	
              69-37399-12

            	
              BFE

            	
              2

            	
              IRS
                MASTER CAUTION UNIT

            	 

    

     

    
 

    
      
        P.A.  No. 
1810                                                                                                                                                                                                          
SA-54

      

      
        K/SWA

        
          

        

      

      
        
          Southwest
            Airlines Co.

          Attachment C
            to 6-1162-JMG-669R8

          3461MK3017

        

      

    

    

    

    Southwest
      Airlines
      Co.                                                                                                                                                                                                             
Project
      ID:                                                  
48668

                                                                                          Change
      No:         
    
                 
   3100MK3017

                                                                                          
      Dated:                      
                    
 July 16, 2007

    

    

    Model:                      737-300/-500

    

    Project
      Title:      AVIONICS UPGRADE - INSTALL LARGE AREA
      DISPLAY SYSTEM (LADS) AND ACTIVATION OF REQUIRED NAVIGATION PERFORMANCE SPECIAL
      AIRCRAFT AND AIRCREW AUTHORIZATION REQUIRED (RNP/SAAAR) - PHASE II

    

    Description
      of Change:

    BACKGROUND:

    This
      effort shall be accomplished in two phases:

    Phase
      I -
      Second FMC installation and installation and activation of dual GNSS. No
      Required Navigation Performance Special Aircraft and Aircrew Authorization
      Required (RNP/SAAAR) capability will be provided during this phase.

    

    Phase
      II
      - Installation of Large Area Displays with activation of RNP/SAAAR.

    

    Each
      phase will be independently accomplished with a FAA certification and Service
      Bulletin at the completion of each phase.

    

    PHASE
      II
      REQUIREMENTS

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

    A.
      REVIEW
      SOUTHWEST AIRLINES (SWA) SUPPLEMENTAL TYPE CERTIFICATES (STCs) TO DETERMINE
      ACCEPTABILITY FOR REFERENCE UNDER BOEING TYPE DESIGN

    

    1.0
      CUSTOMER INFORMATION

    

    1.1
      Contracting Party: Southwest Airlines (SWA)

    

    1.2
      Requesting Party: Boeing Technical Services & Modifications Avionics
      Business Unit

    

    2.0
      PROJECT BACKGROUND

    

    Southwest
      Airlines (SWA) has requested a proposal to upgrade their 737-300/-500
      fleet   to include GPS (RNAV) and RNP/SAAR capability. The
      changes requested include an upgrade to the Flight Deck with a Large Area
      Display System (LADS) that will be similar to their 737NG aircraft.

    

    3.0
      STATEMENT OF WORK

    

    ***

    

    B.
      LARGE
      AREA DISPLAY SYSTEM - SMITHS INDUSTRIES - INSTALLATION OF BFE SMART DISPLAY
      UNITS (DUAL CHANNEL) ON NON-EFIS AIRPLANES AND INTEGRATED STANDBY INSTRUMENT
      SYSTEM (ISIS)

    

    ***

    

    Equipment
      Notes:

    

    ***

    

    
      
        P.A.  No. 
1810                                                                                                                                                                                                          
SA-54

      

      
        K/SWA

        
          

        

      

      
        
          Southwest
            Airlines Co.

          Attachment C
            to 6-1162-JMG-669R8

          3461MK3017

        

      

    

     

    Assumption
      Notes:

    

    ***

    

    C.
      AVIONICS UPGRADE to COMPLY WITH RNP/SAAAR REQUIREMENTS
      (REF.AC90-101)

    

    The
      following equipment upgrades in addition to the Large Area Display System are
      required to implement RNP SAAAR requirements.

    

    Flight
      Control Computer (FCC):

    

    An
      update
      to the existing -4 FCC is required to introduce RNP/SAAAR capability as well
      as
      other FCC functions deemed necessary to ensure RNP/SAAAR implementation is
      operationally common with the 737NG.  FCC updates are required to
      ensure appropriate communication exists between the FCC, FMC, and Large Display
      System for RNP/SAAAR capture and deviation commands.

    

    ***

    

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

    D.
      PROGRAM INTEGRATED AIRPLANE TEST, VALIDATION, & CERTIFICATION

    

    This
      project captures all of the integrated flight test and certification activity
      associated with the following system incorporation into SWA 737-300/500
      fleet.

    

    Phase
      II
      Certification Activity

    

    ***

    

    REMOTE
      CERTIFICATION NOTES:

    

    ***

    

    Material/Equipment
      List:

    

    Similar
      To                      Part
      Number                                                       
 CAT             
Part
      Qty                      Part
      Description                                                      Supplier
      Name

    

    
      	 	
              10-62038-new

            	
              BFE

            	
              2

            	
              Flight
                Control Computer

            	 
	 	
              TBD

            	
              BFE

            	
              2

            	
              Smart
                Display Unit

            	 
	 	
              TBD

            	
              BFE

            	
              2

            	
              EFIS
                Control Panel

            	 
	 	
              TBD

            	
              BFE

            	
              1

            	
              ISDS
                (Integrated Standby Display System)

            	 
	 	
              TBD

            	
              BFE

            	
              1

            	
              Dedicated
                Battery Charger

            	 
	 	
              TBD

            	
              BFE

            	
              1

            	
              OPS,
                Smart Display

            	 
	 	
              980-4700-042

            	
              BFE

            	 	
              Digital
                Flight Data Recorder

            	 
	 	
              967-0212-001

            	
              BFE

            	 	
              Digital
                Flight Data Acquisition Unit

            	 
	 	
              TBD

            	
              BFE

            	
              2

            	
              Display
                Control Panel

            	 

    

     

    
 

    
      
        P.A.  No. 
1810                                                                                                                                                                                                          
SA-54

      

      
        K/SWA

        
          

        

      

      
        
          Southwest
            Airlines Co.

          Attachment C
            to 6-1162-JMG-669R8

          3162MK3580

        

      

    

    

    
      	
              Southwest
                Airlines Co.

            	
                                       
                Project ID:

            	
              47917

            
	
                                       
                Change No:

            	
              3162MK3580

            
	
                                        Dated:

            	
              5/25/2007

            

    

    Model:

    737-700                                                                                                                                                                                                                                                                 

    

    Project
      Title:

    COMMON
      DISPLAY SYSTEM - NAVIGATION PERFORMANCE SCALES - ENABLE

     

    

    Description
      of Change:

    Provide
      an FAA approved service bulletin and required Common Display System (CDS) and
      Flight Management Computer System (FMCS) Operational Program Configuration
      (OPC)
      software diskettes to enable the Navigation Performance Scales (NPS)
      feature.

    

    Feature
      Notes:

    

    ***

    

    Material/Equipment
      List:

    
      	
              Similar
                To

            	
              Part
                Number

            	
              CAT           

            	
              Part
                Qty

            	
              Part
                Description                                

            	
              Supplier
                Name

            
	
              þ

            	
              998-2512-504

            	
              BFE

            	
              1

            	
              DFDAU
                Mandatory Software (disk 963-2000-025)

            	
              Honeywell

            
	
              þ

            	
              998-2513-504

            	
              BFE

            	
              1

            	
              DFDAU
                429 Broadcast Software (disk 963-2100-025)

            	
              Honeywell

            
	
              þ

            	
              L034870003

            	
              BFE

            	
              1

            	
              DFDAU
                Software (disk 360-03834-003)

            	
              SAGEM

            
	
              þ

            	
              3102-TDY-M14-01

            	
              BFE

            	
              1

            	
              DFDAU
                Software (disk 2237274-06) (requires -8XX LRU part number)

            	
              Teledyne

            

    

    

    Note:
      ***

     

     

    
      
        P.A.  No. 
1810                                                                                                                                                                                                          
SA-54

      

      
        K/SWA

        
          

        

      

      
        
          Southwest
            Airlines Co.

          Attachment C
            to 6-1162-JMG-669R8

          3461MK3AIY

        

      

    

    

    
      	
              Southwest
                Airlines Co.

            	
                                    
                Project ID:

            	
              47918

            
	
                                    
                Change No:

            	
              3461MK3AIY

            
	
                                     Dated:

            	
              5/25/2007

            

    

    

    Model:

    737-700                                                                                                         

    

    Project
      Title:

    FLIGHT
      MANAGEMENT COMPUTER SYSTEM (FMCS) - FEATURE REVISIONS

    

    

    Description
      of Change:

    Provide
      an FAA approved service bulletin and Flight Management Computer System (FMCS)
      Operational Program Configuration (OPC) software, and/or wiring instructions,
      as
      required, to enable the following features in the FMC:

    

    ***

    

    Material/Equipment
      List:

    
      	
              Similar
                To

            	
              Part
                Number

            	
              CAT

            	
              Part
                Qty

            	
              Part
                Description                                

            	
              Supplier
                Name

            
	
              þ

            	
              4082260-939
                (Boeing Spec #: 10-62038-239)

            	
              BFE

            	
              1

            	
              Mode
                Control Panel

            	
              Honeywell

            

    

    

    Note:
      ***

    

     

    
 

    
      
        P.A.  No. 
1810                                                                                                                                                                                                          
SA-54

      

      
        K/SWA

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}]]