Document:

FHLB Pit ex10.6.2 1Q 2015

Federal Home Loan Bank of Pittsburgh

Supplemental Thrift Plan
Amended and Restated Effective June 26, 2007
Revised September 26, 2007, December 19, 2008, December 18, 2009, October 26, 2012 and 
March 26, 2015

Table of Contents

Article    Page

Preamble        1

I.    Definitions        2

II.    Participation and Vesting    4

III.    Deferral Elections; Employee Deferrals; Bank Deferrals    5

IV.    Accounts and Investment Vehicles    7

V.    Distribution of Benefits    8

VI.    Administration of the Plan    11

		
	VII.
	General Provisions    13

		
	VIII.
	Amendment Effective March 26, 2015 Governing Deferrals of Deferred Incentive Award Installments    16

Preamble

The Federal Home Loan Bank of Pittsburgh (the "Bank") participates in the Financial Institutions Thrift Plan (the "Thrift Plan"), a retirement savings plan qualified under the Internal Revenue Code (the "Code") for employees of the Federal Home Loan Bank of Pittsburgh.  The Thrift Plan permits eligible employees to elect to reduce and defer a percentage of their compensation, contributing the same to the Thrift Plan.  The Bank matches employee contributions based on length of service and the amount of employee contributions.

However, as a result of the limitations imposed upon the aggregate amount of contributions which can be made to the Thrift Plan under Section 415 and other sections of the Code, such limitations causing a reduction in the benefits otherwise provided to certain of the Bank's executives, the Bank has adopted this nonqualified, unfunded Supplemental Thrift Plan (the "Plan").  The purpose of this Plan is to allow those employees whose benefits under the Thrift Plan would otherwise be significantly restricted by the terms of the Thrift Plan itself or the Code to make elective pretax deferrals and to receive the Bank match relating to such deferrals.  Additionally, under the Plan, the Bank will match 200 percent of such employee's contributions; provided, however, that the Bank’s matching contribution will not exceed the excess of 3 percent of the employee's compensation (as defined in the Plan) over the Bank's contribution to the Thrift Plan.

Article I
Definitions

		
	1.1
	"Account" means the book reserve account established and maintained hereunder to record the contributions deemed to be made by the Participant and the Bank, as well as the increase in value attributable to the earnings thereon, all as described hereafter.

		
	1.2
	“Bank" means the Federal Home Loan Bank of Pittsburgh.

		
	1.3
	“Bank Deferral" means an amount allocated by the Bank to a Participant’s Account pursuant to Section 3.3.

		
	1.4
	"Beneficiary" means the person or persons designated by a Participant under the provisions of this Supplemental Thrift Plan to receive his/her benefits in the event of his/her death prior to receipt of all benefits hereunder.  If no person is designated by a Participant or the designated person or persons do not survive the Participant, the Participant’s Beneficiary shall be his/her estate.  If a Beneficiary who is receiving payments from a Participant’s Account dies before the entire Account has been distributed, the remaining payments shall be made to the Beneficiary’s estate.

		
	1.5
	"Board" or "Board of Directors" means the Board of Directors of the Federal Home Loan Bank of Pittsburgh.

		
	1.6
	“Code” means the Internal Revenue Code of 1986, as amended from time to time.

		
	1.7
	"Compensation" means annual base salary plus incentive compensation, excluding any Deferred Incentive Award as defined in Section 1.11.  

		
	1.8
	"Compensation Deferral Election" means a Participant's irrevocable election to defer a portion of his/her Compensation.

		
	1.9
	"Deferral Period" means the period commencing with the date a Deferred Amount is first credited to a Participant's Account and continuing until payment of the final installment payment from a Participant's Account.

		
	1.10
	"Deferred Amount" means the sum of all amounts deferred pursuant to a Participant's Deferral Elections pursuant to Articles III and VIII, plus the Bank match (if applicable), plus investment earnings thereon, plus any increments thereof credited to the Participant's Account, less any benefit payments made from the Participant's Account.

		
	1.11
	“Deferred Incentive Award” means that portion of a Participant’s award under a Bank incentive plan, if any, that is performance-based, contingent and subject to payment deferral under the terms of such incentive plan.  

		
	1.12
	"Disability" means with respect to eligibility for payment of a Participant’s vested benefit under the Plan through December 31, 2004, a Participant's total or partial disability as determined by the Thrift Plan in accordance with the Thrift Plan in effect at October 3, 2004.  With respect to eligibility for payment of a Participant’s vested benefit amounts under the Plan after December 31, 2004, “Disability” means that the Participant is: a) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; b) by reason of any medically determinable physical or mental impairment, which can be expected to result in death or can be expected to last for a continuous period of not less than 12 

months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Bank; or c) determined to be totally disabled by the Social Security Administration.  

		
	1.13
	"Employee Deferral" means an amount of Compensation deferred by a Participant under the Plan.

		
	1.14
	"Human Resources Committee" means the Human Resources Committee of the Board including any successor Board Committee as shall be designated by the Board from time to time as having responsibility for Bank compensation and benefits programs.

		
	1.15
	"Original Effective Date" means January 1, 1991.

		
	1.16
	"Participant" means an executive or other key employee who has been recommended by the President, and confirmed by the Board, as eligible to participate in the Plan.

		
	1.17
	"Plan Administrator" means such officer(s) or manager of the Bank who has been appointed by the Human Resources Committee to administer the Plan as set forth in Section 6.1 of the Plan.  The Human Resources Director (and any successor) shall serve as the Plan Administrator unless the Board shall appoint another Bank officer(s) or manager.  

		
	1.18
	“Separation from Service” means the Participant’s death, retirement, the time at which the Participant’s services performed for the Bank are permanently reduced to no more than 20 percent of the average level of services performed by the Participant over the preceding 36-month period, or other termination of employment all as set forth in applicable definitions under 26 C.F.R. 1.409A-1(h) and related and successor regulations as may be in effect from time to time.

		
	1.19
	“Unforeseeable Emergency” means: a) a severe financial hardship to a Participant resulting from an illness or accident of: (i) the Participant; (ii) the Participant’s spouse; (iii) the Participant’s dependent as defined in Code Section 152(a); or (iv) if the Participant is already receiving payments under the Supplemental Thrift Plan, a severe financial hardship resulting from illness or accident of the Beneficiary; b) loss of the Participant’s property due to casualty; or c) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.  

Article II
Participation and Vesting

		
	2.1
	Eligibility to Participate.  A Participant shall become eligible for Plan participation on the later of the first day of the calendar month coincident with or next following the date his/her participation is approved by the Board or the Effective Date.  Once selected as a Participant, the Participant shall continue as a Participant until the Board determines otherwise.  No Participant shall have the right to continue as a Participant in the Plan.

Upon designation as a Participant, each Participant will be given a copy of the Plan.  Upon becoming eligible to participate in the Plan, a Participant shall have the option to make a Compensation Deferral Election to defer a portion of his/her annual Compensation.

		
	2.2
	Termination of Participation.  No further Employee Deferrals, Bank Deferrals or deferrals pursuant to Article VIII shall occur with respect to a Participant after the Participant’s employment with the Bank terminates.  However, until the amounts in a Participant’s Account are fully paid out to the Participant and/or his/her Beneficiary, the Participant’s Account shall continue to be notionally invested as provided in Section 4.2, and the Participant (or his/her Beneficiary) shall continue to have the right to change such investments by written notice (which includes electronic notice and in the form prescribed by the Plan Administrator) to the Plan Administrator.  Once a Participant’s Account has been fully paid out, such Participant shall cease to be a Participant in the Plan and neither the Participant nor his/her Beneficiary shall have any further rights hereunder.

		
	2.3
	Vesting.  All benefits under the Plan are fully vested at all times subject only to Forfeiture for Cause as defined in Section 7.6.  For all purposes of the Plan, earnings with respect to amounts in a Participant’s Account which were vested as of December 31, 2004 (and earnings on such earnings) shall be deemed to have been vested as of December 31, 2004 and all other earnings with respect to amounts in a Participant’s Account shall be deemed not to have been vested as of December 31, 2004.

Article III
Deferral Elections; Employee Deferrals; Bank Deferrals

		
	3.1
	Compensation Deferral Elections.  The Plan Administrator shall provide each Participant with a form on which to make a Compensation Deferral Election within 10 days after such Participant becomes eligible to participate in the Plan and at least 30 days prior to the end of each calendar year.  Each Participant shall execute and deliver the Deferral Election to the Plan Administrator no later than the last business day of each calendar year with respect to Compensation to be earned as defined in Section 1.7, which includes incentive compensation to be earned in the following calendar year and excludes any Deferred Incentive Award.  

An executive or key employee who becomes eligible to participate during a calendar year shall have the option to execute a Compensation Deferral Election and deliver it to the Administrator within 30 days of the date he/she becomes eligible to participate in the Plan.  Such election shall apply only to Compensation and awards under an incentive plan (excluding any Deferred Incentive Award) to be earned after the date of the delivery of the Compensation Deferral Election to the Administrator and the Bank shall defer such amounts on a prorated basis when applicable.

The Compensation Deferral Election will state the percentage of Compensation which the Participant elects to defer for the remainder of the first year of his/her eligibility or for the forthcoming calendar year, as the case may be; provided that different deferral percentages may apply to base salary and the portion of incentive compensation included in the definition of Compensation in Section 1.7.  A Compensation Deferral Election shall be irrevocable for the calendar year (or portion thereof in the case of the first year of eligibility) for which the deferral is elected unless an amendment of the Thrift Plan requires a new election by a Participant, and such a new election is permissible under I.R.C. Section 409A and implementing regulations.  If such an event occurs, the Plan Administrator will communicate in writing with the Participant to request a new Compensation Deferral Election.  Notwithstanding an amendment of the Thrift Plan:

		
	(a)
	(i) As to amounts earned in the first calendar year of participation, no modification of a Compensation Deferral Election may be made more than thirty (30) days after a Participant becomes eligible to participate in the Plan; and (ii) as to amounts earned in the second and subsequent calendar years of participation, no modification of a Compensation Deferral Election may be made after December 31 of the calendar year preceding the calendar year in which the amounts are earned; and 

		
	(b)
	as to amounts in a Participant’s Account which are not vested as of December 31, 2004, the last four sentences of Section 5.5 shall apply.

		
	3.2
	Employee Deferrals.  Once the Participant has made the maximum amount of employee contributions allowable under the Thrift Plan in a calendar year, additional amounts shall be deferred under this Plan in accordance with the Participant’s Compensation Deferral Election.  Amounts deferred under this Plan with respect to any calendar year may not exceed 80 percent of the Participant's Compensation (including amounts earned pursuant to a Bank incentive plan which are includable in the definition of Compensation) less the Participant’s contributions to the Thrift Plan.  For this purpose, a Participant’s contributions to the Thrift Plan shall include any after‐tax contributions to the Thrift Plan by such Participant.  

		
	3.3
	Bank Deferrals.  For each Employee Deferral, the Bank shall allocate a matching Bank Deferral equal to 200 percent of the Employee Deferral; provided that, Bank Deferrals for each Participant 

with respect to each calendar year shall not exceed the excess of (a) 3 percent of the Participant’s Compensation over (b) the Bank’s matching contribution to the Thrift Plan.  

Article IV
Accounts and Investment Vehicles

		
	4.1
	Accounts.  The total of the Employee and Bank Deferrals shall be credited monthly to the applicable Participant Account (to a Sub-Account Titled “Compensation Deferrals”) as the deferred amounts are earned and shall be recorded on the financial books and records of the Bank as a liability owed to the Participant and separate investment elections may be made as to separate sub-accounts.  As set forth in Article VIII, any Deferred Incentive Award installments for which an election is made under Article VIII shall be credited to a separate sub-account of such Participant’s Account.

		
	4.2
	Notional Investments.  Effective November 1, 2007, all Employee and Bank Deferrals credited to a Participant's Account will be assumed to be notionally invested in the investment funds selected by Participant from time to time from a list provided to the Participant by the Bank (such list is referred to as the “Eligible Investments”).  Such Eligible Investments shall be substantially similar to the investment choices available under the Thrift Plan from time to time.  Each Participant's notional share in the investment funds shall be represented by notional units in such funds.  Each valuation day the number of new notional units credited to a Participant in the investment funds will be determined by dividing the total amount of such Participant’s Employee and Bank Deferrals notionally invested in the investment funds during the month by the unit value of the investment funds as of the most recent valuation date.  The notional allocations of Employee and Bank Deferrals (as applicable) to the investment funds shall be as set forth in the investment election forms completed by each Participant and submitted to the Plan Administrator from time to time.  Such election forms may be submitted in electronic form in accordance with instructions from the Plan Administrator or, at the option of the Participant in written form.  

		
	4.3
	Records.  The Plan Administrator shall maintain such records as it deems necessary to administer this Plan and shall direct the calculation of amounts in the Participants' Accounts.  To this end, the Plan Administrator is authorized to use Bank employees, agents or contractors to calculate the benefits due hereunder.

Article V
Distribution of Benefits

		
	5.1
	Amount of Benefits.  A Participant's Account shall be valued as of the last day of the month preceding each month with respect to which the Participant is entitled to receive a distribution hereunder, assuming no contributions were made since the last day of the preceding month.  If a contribution was made since the last day of the preceding month, the amount of such contribution shall be added to the value determined under the preceding sentence.  This Article V shall apply solely to distributions from a Participant’s Compensation Deferral Sub-Account.  This Article shall not apply to distributions under Article VIII.

		
	5.2
	Events Which Trigger Payment of Amounts Vested as of 12/31/04.  The amounts in a Participant's Account which are vested as of December 31, 2004, including all earnings thereon, shall become payable to him/her pursuant to Section 5.3 as of the earliest of the date of his/her termination of employment with the Bank, including termination due to death, his/her Disability, or his/her retirement or other Separation from Service as defined above.  With respect to amounts in a Participant’s Account which are vested as of December 31, 2004, notwithstanding any deferral election previously made, a Participant may at any time submit a request, through the Plan Administrator, to the Human Resources Committee seeking a distribution of part or all of such amounts for reasons of severe financial hardship or other reasons as permitted under the provisions of the Thrift Plan in its form as of October 3, 2004.  The Human Resources Committee may, in its absolute discretion, grant or refuse any such request.  It is the intention of the Board that hardship and other withdrawals of amounts in a Participant’s Account which are vested as of December 31, 2004 shall be available for the same reasons as such withdrawals are available from the Thrift Plan (in its form as of October 3, 2004) and that the Participant shall provide such proof and documentation as is required for hardship and other withdrawals from the Thrift Plan.

		
	5.3
	Amounts Vested as of 12/31/04 – Form and Timing of Payment.  When a Participant’s Account is payable pursuant to Section 5.2, it shall be paid in a lump sum within 90 days following the applicable payment event set forth in Section 5.2.  Alternatively, if the Participant has so elected, the Participant’s Account shall be paid in from two to ten annual installments.  In the case of installment payments, the first installment payment shall be made within 90 days of the applicable payment event set forth in Section 5.2 and each remaining annual installment shall be paid no later than March 31 of each succeeding year.  The amount of the installment payment to be distributed in each calendar year shall be the amount calculated by dividing the value of the Participant’s Account as of the immediately preceding month-end by the number of remaining installment payments, including the one whose value is being calculated.  The elections and any changes to an election which are permitted hereunder will become effective on the first January 1 which is at least twelve months after the date of the election.  Failure to make an election shall result in a lump sum payment within 90 days of the triggering payment event.

		
	5.4
	Events Which Trigger Payment of Amounts Not Vested as of 12/31/04.  The amount in a Participant’s Account which is not vested as of December 31, 2004, including all earnings thereon, shall become payable to him/her pursuant to Section 5.5 as of the earliest of the date of his/her termination of employment with the Bank (including retirement or other Separation from Service as defined above), his/her Disability or his/her death.  With respect to amounts in a Participant’s Account which are not vested as of December 31, 2004, notwithstanding any deferral election previously made, in the event that a Participant suffers an Unforeseeable Emergency, the Participant may submit a request, through the Plan Administrator, to the Human Resources Committee seeking a distribution of part or all of the amount credited to such Participant's Account.  The Human Resources Committee may, in its absolute discretion, grant or refuse any such request.  The amount of a distribution that the Bank may make hereunder in 

response to such a Participant request shall be limited to the amount needed to satisfy the Unforeseeable Emergency plus taxes reasonably anticipated as a result of the distribution.  Distributions shall not be allowed to the extent that the Unforeseeable Emergency may be relieved through reimbursement or compensation by insurance or otherwise, or by liquidation of a Participant’s assets (to the extent such liquidation would not itself cause a severe financial hardship).   

		
	5.5
	Amounts Not Vested as of 12/31/04 – Form of Payment.  When a Participant’s Account is payable pursuant to Section 5.4, it shall be paid in a lump sum within 90 days following the applicable payment event set forth in Section 5.4.  Alternatively, if the Participant has so elected, the Participant’s Account shall be paid in from two to ten annual installments.  Failure to make an election at any time shall result in a lump sum payment.  Any change in an installment payment election, from an installment payment election to a lump sum election or from a lump sum election to an installment payment election (“Revised Election”) will become effective on the first January 1 which is at least twelve months after the date of the election.  In addition, with respect to any such Revised Election which changes the timing of any payment, each payment to be made to the Participant shall be deferred by a date which is at least five years after the date on which such payment would have been made; provided that, for this purpose, a series of installment payments shall be treated as the entitlement to a single payment on the date of the first payment.  A Revised Election which changes an Existing Election from installment payments to a lump sum payment shall require that the date of such lump sum payment shall be a date that is at least five years from the date the initial installment payment would have been made.  Notwithstanding the foregoing or any provision in this Plan, a Revised Election may not cause the impermissible acceleration of any payment, within the meaning of Internal Revenue Code Section 409A or its implementing regulations.   

		
	5.6
	Amounts Not Vested as of 12/31/04 – Timing and Calculation of Installment Payments.  Installment payments under this Plan shall be made as follows: the first payment shall be made within 90 days of the payment event with each remaining annual installment paid no later than March 31 of each succeeding year.  The amount of the installment payment to be distributed in each calendar year shall be the amount calculated by dividing the value of the Participant’s Account as of the immediately preceding month end by the number of remaining installment payments, including the one whose value is being calculated.  

		
	5.7
	Amounts Not Vested as of 12/31/04 – Revision of Existing Payment Election Prior to 12/31/07.  The Plan is hereby amended to permit each Participant, on or before December 31, 2007, to amend his/her current payment election as in effect on June 25, 2007, covering amounts not vested as of December 31, 2004.  Such a revised payment election shall be referred to as a “Transition Election.”  Provided that such Transition Election does not result in a payment in 2007, such Transition Election shall become effective upon receipt by the Plan Administrator and shall not be subject to the terms of Section 5.5.  Any Transition Election shall be subject to the requirements of I.R.S. Notice 2006-79.  

Additional Transition Election Prior to 12/31/08:  Effective January 1, 2008, the Plan is hereby amended to permit Participant, on or before December 31, 2008, to amend his/her current payment election with respect to amounts not vested as of December 31, 2004.  Such revised payment election shall be referred to as the 2008 Transition Election.  Provided that such 2008 Transition Election does not result in a payment in 2008, such 2008 Transition Election shall become effective upon receipt by the Plan Administrator and shall not be subject to the terms of Section 5.5.  Any 2008 Transition Election shall be subject to the requirements of I.R.S. Notice 2006-79, as modified by IRS Notice 2007-86.

		
	5.8
	Death Benefits.  In the event of a Participant's death prior to the payment of all amounts in the Participant’s Account, the amount then held in the Participant's Account shall become payable to 

his/her Beneficiary in the same manner as such amount would have been paid to the Participant had he/she not died.

		
	5.9
	Loans.  No loans are available from the Plan.

Article VI
Administration of the Plan

		
	6.1
	Human Resources Committee.  The Board has delegated to the Human Resources Committee authority over, and responsibility for, the interpretation and administration of the Plan; except that the power to determine eligibility for participation in the Plan pursuant to Section 2.1 is reserved to the Board.  The Human Resources Committee shall interpret and construe the Plan and have the responsibility to ensure that its provisions are carried out.  The Human Resources Committee shall exercise such power and responsibilities in its sole and absolute discretion.  The Human Resources Committee shall designate the Plan Administrator.

		
	6.2
	Plan Administration.  The Plan Administrator shall:

		
	(a)
	act as the point of contact for submission of claims for benefits due under the Plan;

		
	(b)
	calculate the benefits due under the Plan or arrange for the calculation of benefits;

		
	(c)
	inform Participants of the terms of the Plan and respond to their questions regarding the Plan;

		
	(d)
	review and process claims for the payment of benefits under the Plan;

		
	(e)
	provide necessary reporting to Bank management, Participants, the Human Resources Committee, the Board, and others as necessary; and

		
	(f)
	take such other action as is required to perform the tasks listed hereunder or otherwise administer the terms of the Plan.  In fulfilling the responsibilities in this section, the Plan Administrator may use other Bank staff, other agents or engage contractors.  

		
	6.3
	Claims Procedure.  All claims for benefits shall be in writing and shall be filed with the Plan Administrator.  If the Plan Administrator wholly or partially denies a Participant's or Beneficiary's claim for benefits, the Plan Administrator shall, within 90 days after the Plan's receipt of the claim, give the claimant written notice setting forth in understandable language:

		
	(a)
	the specific reason(s) for the denial;

		
	(b)
	specific reference to pertinent Plan provisions on which the denial is based;

		
	(c)
	a description of any additional material or information which must be submitted to perfect the claim, and an explanation of why such material or information is necessary; and

		
	(d)
	an explanation of the Plan's review procedure.

The claimant shall have 60 days after the day on which such written notice of denial is handed or mailed to him/her in which to apply (in person or by authorized representative) to the Human Resources Committee, in writing, for a full and fair review of the denial of this claim.  In connection with such review, the claimant (or this representative) shall be afforded a reasonable opportunity to review pertinent documents and may submit issues and comments in writing.

The Human Resources Committee shall issue its decision on review promptly and within 60 days after the Plan's receipt of the request for review, unless special circumstances require an extension 

to not later than 120 days after receipt of the request for review.  (Written notice of any such extension shall be furnished to the claimant before the commencement of such extension.)  The decision shall be in writing and shall set forth in understandable language specific reasons for the decision and specific references to pertinent Plan provisions on which the decision is based.

Article VII
General Provisions

		
	7.1
	Rights to Employment.  The establishment of the Plan, and selection of an executive for inclusion as a Participant in the Plan, shall not be construed as conferring any legal rights upon any Participant or other person for the continuation of employment; nor shall it interfere with the rights of the Bank to discharge any Participant and to treat him/her without regard to the effect such treatment might have upon him/her as a Participant in the Plan.

		
	7.2
	Source of Funding – Participant as General Creditor.  The Bank has not established any form of trust or funded account for the purpose of providing benefits under this Plan.  In the event that the Bank establishes a rabbi trust or other similar arrangement, such arrangement shall preserve this Plan’s status under the Internal Revenue Code as an unfunded nonqualified deferred compensation plan and the assets of the Bank held pursuant to any such arrangement shall remain subject to the claims of the Bank's general creditors.  Any Participant who may have or claim any interest in or right to any amount payable hereunder shall rely solely upon the unsecured promise of the Bank, as set forth herein, for the payment of the claim.  Nothing herein contained should be construed to give to or vest in any Participant, now or at any time in the future, any right, title, interest or claim in or to any specific asset, fund, reserve, account or property of any kind whatever owned by the Bank, or in which the Bank may have any right, title or interest, now or at any time in the future.  The Plan is not intended to be a qualified plan within the meaning of Section 401(a) of the Code and the Bank shall not be required to qualify the Plan under the Code.

		
	7.3
	Incapacity.  In the event that the Human Resources Committee shall find that a Participant is unable to care for his/her affairs because of illness or accident, the Human Resources Committee may direct that any payment due him/her, unless claim shall have been made therefor by a duly appointed legal representative, be paid to his/her spouse, a child, a parent or other blood relative, or to a person with whom he/she resides, and any such payment so made shall be a complete discharge of the liabilities of the Plan therefor.

		
	7.4
	Reporting and Withholding of Taxes.  The Bank shall file Form W-2 and other applicable tax documents as required under applicable federal and state law, including, without limitation, required annual federal tax filings of a Participant’s accrued benefits under the Plan.  The Bank shall have the right to deduct from each payment to be made under the Plan any required withholding taxes and shall withhold or cause to be withheld from all payments or accruals of benefits under the Plan (if applicable), all federal, state or local taxes required to be withheld by law.  The Participant shall be liable for the payment of all taxes on the benefits under the Plan that are the Participant's responsibility under the laws establishing such taxes.

		
	7.5
	Alienation of Benefits under the Plan.  Benefits payable under this Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, whether voluntary or involuntary, including any such liability which is for alimony or other payments for the support of a spouse or former spouse, or for any other relative of the Participant, prior to actually being received by the person entitled to the benefits under the terms of the Plan, and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same shall be void; nor shall any such distribution or payment be in any way liable for or subject to the debts, contracts, liabilities, engagements or torts of any person entitled to such distribution or payment.  If any Participant or Beneficiary is adjudicated bankrupt or purports to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any such distribution or payment voluntarily or involuntarily, the Bank, in its discretion, may hold or cause to be held or applied such distribution or payment or any part thereof to or for the benefit of such Participant or Beneficiary in such manner as the Bank shall direct.

		
	7.6
	Forfeiture for Cause.  The Bank Deferrals and the earnings on the Bank Deferrals otherwise payable by the Plan may be subject to forfeiture for cause at any time.  "Cause" shall mean:

		
	(a)
	the perpetration by a Participant of a defalcation involving the Bank or any affiliate;

		
	(b)
	willful, reckless or grossly negligent conduct of a Participant entailing a substantial violation of any material provision of the laws, rules, regulations or orders of any governmental agency applicable to the Bank or an affiliate;

		
	(c)
	the repeated and deliberate failure by a Participant to comply with reasonable policies or directives of the Board of Directors; or

		
	(d)
	the breach by a Participant of a noncompetitive covenant or agreement with the Bank or affiliate.

Whether the facts in any given case amount to "Cause" shall be determined by the Board of Directors.

		
	7.7
	Compliance with Laws.  The provisions of the Plan shall be construed, administered and governed under the laws of the United States including, without limitation, Internal Revenue Code Section 409A and implementing regulations and, to the extent they defer to state law, the laws of the Commonwealth of Pennsylvania.  

		
	7.8
	Construction.  Whenever any words are used herein in the masculine gender, they shall be construed as though they were also used in the feminine gender in all cases where they would so apply, and whenever any words are used herein in the singular form, they shall be construed as though they were also used in the plural form in all cases where they would so apply.  Titles of Articles and Sections hereof are for convenience of reference only and are not to be taken into account in construing the provisions of this Plan.  In case any provision of the Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts of the Plan, but the Plan shall be construed and enforced as if said illegal and invalid provision had never been inserted herein.

		
	7.9
	Amendment and Termination.  The Bank specifically reserves the right, in the sole and unfettered discretion of its Board, at any time, to amend, in whole or in part, any or all of the provisions of the Plan and to terminate the Plan in whole or in part; provided, however, that no such amendment or termination shall reduce or eliminate the rights of a Participant accrued hereunder to the date of such amendment or termination.  Provided further, that no such termination shall result in an impermissible acceleration of any amount deferred under this Plan that would violate the provisions of Internal Revenue Code Section 409A(a)(3) or Treasury Regulation Section 1.409A-3(j) or any successor regulations.  

		
	7.10
	Binding on Successors.  The Plan shall be binding upon and inure to the benefit of the Bank and its successors and assigns.  The Plan shall also be binding upon and inure to the benefit of any successor organization succeeding to substantially all of the assets and business of the Bank.  Nothing in the Plan shall preclude the Bank from merging or consolidating into or with, or transferring all or substantially all of its assets to, another organization which assumes the Plan and all obligations of the Bank hereunder.  The Bank agrees that it will make appropriate provision for the preservation of Participants' rights under the Plan in any agreement or plan which it may enter into to effect any merger, consolidation, reorganization or transfer of assets.  Upon such a merger, consolidation, reorganization, or transfer of assets and assumption of Plan obligations of the Bank, the term "Bank" shall refer to such other organization and the Plan shall continue in full force and effect.

		
	7.11
	Permissible Payment Acceleration.  In the event of an Internal Revenue Code Section 409A Plan failure that results in income inclusion to a Participant, payment of Participant’s benefits under this Plan shall be accelerated; provided that, the amount of the accelerated payment shall not exceed the amount required to be included in Participant’s income due to the Plan failure.

Article VIII
Amendment Effective March 26, 2015 Governing Deferrals of
Deferred Incentive Award Installments 

		
	8.1
	Definitions Applicable to Article VIII. Terms defined in this Article shall have the meanings set forth herein and shall apply solely to the deferrals of performance-based Deferred Incentive Award installments.  Other capitalized terms used in this Article shall have the meanings ascribed to them in the Plan.     

		
	8.2
	Implementation of Deferrals of Deferred Incentive Award Installments.  

		
	(a)
	Employee Deferrals – Existing Participants.  A Participant may elect to defer a specified percentage of each Deferred Incentive Award installment.  Each Participant shall be provided with a Deferred Incentive Installment Election Form (“Deferred Incentive Election Form”) at least 30 days prior to each calendar year.  Notwithstanding the foregoing, to the extent that Participant’s Deferred Incentive Award installments constitute “performance-based compensation” as defined by Treasury Regulation 1.409A-2(b) and the following requirements are met: (i) the Participant must be performing services for the Bank continuously from the beginning of the performance period (or date when the criteria are set) through the date of the election, and (ii) the election cannot apply to any portion of the award that is substantially certain to be paid on the date of the election, the Participant may execute and deliver a Deferred Incentive Election Form with respect to each Deferred Incentive Award installment after the beginning of the performance period for such installment, but no later than six months before the end of the performance period; all such elections shall be irrevocable for the performance period for which such deferral is elected.  In no event may a Deferred Incentive Election Form be executed and delivered as to any portion of such award that is substantially certain to be paid.  

		
	(b)
	Deferrals by New Participants.  If a Participant was not employed by the Bank on the first day of the performance period applicable to the Deferred Incentive Award installment, then for purposes of this Section the Participant is only eligible to defer a portion of his or her Deferred Incentive Award installments if he or she makes an initial deferral election within thirty (30) days after the date when he or she first becomes eligible to participate in a Deferred Incentive Award.  Furthermore, a deferral election that is subject to this subsection (b) shall only apply to the portion of the Participant's Deferred Incentive Award installment that is earned after the date when the Participant's election is submitted to the administrator of the Plan.  In all cases such elections shall be irrevocable for the performance period for which such deferral is elected.  

		
	(c)
	Accounts and Investment Vehicles.  To the extent that a Participant has made such deferral election(s) as described in (a) or (b) of Section 8.2 as to any Deferred Incentive Award installment payable to the Participant, each such installment that is subject to a deferral election shall (instead of being paid to the Participant in accordance with the terms of the applicable incentive plan): (i) be credited to the Participant’s Account under the Plan (specifically into a sub-account titled “Deferred Incentive Sub-Account”); (ii) shall be invested pursuant to the Participant’s Deferred Incentive Sub-Account investment election form; and (iii) shall receive earnings on the same basis as other amounts in the Participant’s Account receive earnings credit under this Plan in accordance with the terms of Section 4.1 and 4.2.  In the absence of a Participant Deferred Incentive Sub-Account investment election form, Sub-Account amounts shall be allocated to a notional money market investment.  Deferred Incentive Award installments which the Participant defers under this Section 8.2 shall not be included in 

the definition of Compensation under the Plan and such amounts shall not be subject to matching Bank Deferrals under the Plan.   
		
	8.3
	Deferred Incentive Sub-Account Distribution Elections. 

		
	(a)
	Initial Distribution Elections

Amounts in the Deferred Incentive Sub-Account shall be payable to the Participant in accordance with the Participant’s executed distribution election form (referred to as the “Sub-Account Distribution Form”) as described herein.  The balance in the Deferred Incentive Sub-Account shall be paid to the Participant either: (i) in a lump sum payment or (ii) annual installments over two to ten years, as elected by the Participant on his Sub-Account Distribution Form.  If installment payments are elected such payments shall be calculated and paid as to the Sub-Account balance in the manner described in Section 5.6 of the Plan.  
As elected by the Participant on his Sub-Account Distribution Form such distributions shall commence on: (i) a date following the Participant’s Separation from Service with the Bank, but no later than 90 days after the Participant’s Separation from Service or (ii) a date certain elected by the Participant.  
		
	(b)
	Subsequent Distribution Elections

A Participant’s Sub-Account Distribution Form shall be in writing and shall be subject to the following additional rules: any subsequent Sub-Account distribution election (i.e., any election following the Participant’s initial distribution election under Section 8.3(a) above) will become effective on the first January 1 which is at least 12 months after the date of such subsequent election.

In addition, with respect to any such subsequent distribution election which changes the timing of any payment, each payment to be made to the Participant shall be deferred by a date which is at least five years after the date on which such payment would have been made; provided that, for this purpose, a series of installment payments shall be treated as the entitlement to a single payment on the date of the first payment.  A subsequent distribution election which changes an existing distribution election from installment payments to a lump sum payment shall require that the date of such lump sum payment shall be a date that is at least five years from the date the initial installment payment would have been made.  Notwithstanding the foregoing or any provision in this Plan, a subsequent distribution election may not cause the impermissible acceleration of any payment, within the meaning of Internal Revenue Code Section 409A or its implementing regulations.   
		
	(c)
	Payment of Sub-Account Balance Following Participant’s Death.  If a Participant dies prior to receiving the balance credited to his Sub-Account, the balance in his Sub-Account shall be paid to his/her Beneficiary at the same time and in the same manner as if the Participant had continued to live. 

		
	(d)
	Unforeseeable Emergency Distribution.  The terms and limitations of Section 5.4 of the Plan regarding requests for distributions due to Unforeseeable Emergency shall apply as to the Participant’s Sub-Account balance as well.  No loans from the Sub-Account shall be permitted.  

		
	8.4
	Incorporation of Remaining Terms of the Supplemental Thrift Plan.  Except as modified through Sections 8.1 through 8.4 or unless stated elsewhere in the Plan, the remaining terms and 

conditions of this Plan shall apply to Article VIII including, without limitation, Articles VI and VII of the Plan.boeingsupplemental

P.A. 2497   ASA SA-39-1      FOIA CONFIDENTIAL    TREATMENT REQUESTED                           Supplemental Agreement No. 39      to      Purchase Agreement No. 2497      between      The Boeing Company      and      Alaska Airlines, Inc.      Relating to Boeing Models 737-800 and 737-900ER Aircraft          THIS SUPPLEMENTAL AGREEMENT, entered into as of February 12, 2015, by and   between THE BOEING COMPANY (Boeing) and ALASKA AIRLINES, INC. (Customer).    WHEREAS, the parties hereto entered into Purchase Agreement No. 2497 dated June   15, 2005 (Purchase Agreement), as amended and supplemented, relating to Boeing Model 737-   890 aircraft and 737-990ER aircraft (737-990ER Aircraft);     WHEREAS, Boeing offered and Customer agrees to purchase two (2) Boeing Model   737-900ER aircraft as set forth below (Incremental Aircraft):   Contract Delivery   Month   Manufacturer Serial   Number   [***] [***]   [***] [***]            * Indicates that certain information contained herein has been omitted and filed    separately with the Securities and Exchange Commission. Confidential treatment    has been requested with respect to the omitted portions.      

 

Supplemental Agreement No. 39 to   Purchase Agreement No. 2497      P.A. 2497   ASA SA-39-2   WHEREAS, Boeing offered and Customer agrees to purchase two (2) Boeing Model   737-900ER aircraft as set forth below (Incremental Quarterly Aircraft):   Contract Delivery   Month   Manufacturer Serial   Number   [***] [***]   [***] [***]   ;   WHEREAS, Customer agrees to exercise its option to purchase two (2) Option Aircraft   described in Letter Agreement 2497-1R21 and concurrently substitute such Option Aircraft to   737-900ER aircraft (Exercised Option Aircraft):   Contract Delivery   Month   Manufacturer Serial   Number   [***] [***]   [***] [***]   ;    WHEREAS, Boeing and Customer acknowledge that the reference to Letter Agreement   ASA-PA-2497-LA-1209641R2 entitled “Special Matters” in the preamble of SA-38 under “Letter   Agreements”, is erroneous and agree to disregard such reference.  Boeing and Customer agree the   correct reference is the following: “Letter Agreement ASA-PA-2497-LA-1209641R3 entitled   “Special Matters”, is hereby deleted in its entirety and replaced with a revised Letter Agreement   ASA-PA-2497-LA-1209641R4, attached hereto, to identify the applicable Aircraft for such Letter   Agreement.”; and   WHEREAS, Boeing and Customer agree to update Letter Agreement ASA-PA-2497-   LA-1404217 entitled [***] to identify the applicable Aircraft for such Letter Agreement.   NOW THEREFORE, in consideration of the mutual covenants herein contained, the   parties agree to amend the Purchase Agreement as follows:                  * Indicates that certain information contained herein has been omitted and filed    separately with the Securities and Exchange Commission. Confidential treatment    has been requested with respect to the omitted portions.      

 

Supplemental Agreement No. 39 to   Purchase Agreement No. 2497      P.A. 2497   ASA SA-39-3   1. Purchase Agreement Table of Contents and Tables.   1.1 Remove and replace, in its entirety, the Purchase Agreement “Table of   Contents”, with the revised Table of Contents, attached hereto, to reflect the changes made in this   Supplemental Agreement No. 39.   1.2 “Table 1C to Purchase Agreement 2497”, is deleted in its entirety and   replaced with a revised Table 1C to Purchase Agreement 2497, attached hereto, to reflect the   addition of the Incremental Aircraft and the Exercised Option Aircraft.     1.3 “Table 1D to Purchase Agreement 2497”, attached hereto, is hereby added to   the Purchase Agreement to reflect the addition of the Incremental Quarterly Aircraft.  The month   of delivery has not yet been identified for the Incremental Quarterly Aircraft.  Boeing will, at its   sole discretion, identify the specific delivery months for the Incremental Quarterly Aircraft, and   will notify Customer of the delivery months no later than July 31, 2015.   2. Supplemental Exhibits.    Supplemental Exhibit BFE1 entitled “Buyer Furnished Equipment Variables”, is   deleted in its entirely and replaced with a revised Supplemental Exhibit BFE1 attached hereto, to   reflect the addition of the Incremental Aircraft and the Exercised Option Aircraft.  The   Supplemental Exhibit BFE1 reflects [***] on-dock dates for the Incremental Quarterly Aircraft.    As soon as the delivery months are identified for the Incremental Quarterly Aircraft, Boeing and   Customer agree to revise the Supplemental Exhibit BFE1 accordingly.   3. Letter Agreements.   3.1 Attachment 3 to Letter Agreement 2497-1R21 entitled “Option Aircraft”, is   hereby deleted in its entirety and replaced with a revised Attachment 3, attached hereto, to reflect   the removal of the Exercised Option Aircraft, pursuant to this Supplemental Agreement No. 39.   3.2 Letter Agreement ASA-PA-2497-1208492R6 entitled “Aircraft Performance   Guarantees”, is hereby deleted in its entirety and replaced with a revised Letter Agreement ASA-   PA-2497-1208492R7, attached hereto, to incorporate the Incremental Aircraft, Incremental   Quarterly Aircraft, and Exercised Option Aircraft.   3.3 Letter Agreement ASA-PA-2497-LA-1403488 entitled “Special Matters – SA-   37”, is hereby deleted in its entirety and replaced with a revised Letter Agreement ASA-PA-2497-   LA-1403488R1 entitled “Special Matters – SA-37 and SA-39”, attached hereto, to incorporate the   Incremental Aircraft, Incremental Quarterly Aircraft, and the Exercised Option Aircraft.   3.4 Letter Agreement ASA-PA-2497-LA-1404217 entitled [***], is hereby deleted its   entirely and replaced with a revised Letter Agreement ASA-PA-2497-LA-1404217R1, attached   hereto, to identify the applicable Aircraft for such Letter Agreement.         * Indicates that certain information contained herein has been omitted and filed    separately with the Securities and Exchange Commission. Confidential treatment    has been requested with respect to the omitted portions.      

 

Supplemental Agreement No. 39 to   Purchase Agreement No. 2497   P.A. 2497   ASA SA-39-4   3.5 Letter Agreement 6-1162-LLL-0130R3 entitled “Boeing Proposal relating to   Space Bins”, is hereby added to the Purchase Agreement.    4. Advance Payments.   The sum of [***] is the amount due in advance payments, as a result of (i)   purchasing the Incremental Aircraft and Incremental Quarterly Aircraft; and (ii) exercising and   converting the Option Aircraft.   The Agreement will be deemed to be supplemented to the extent provided herein as of the date   hereof and as so supplemented will continue in full force and effect.   EXECUTED IN DUPLICATE as of the day and year first written above.   THE BOEING COMPANY ALASKA AIRLINES, INC.   By: /s/ Lanine Lange By: /s/ Mark Eliasen   Its:  Attorney-In-Fact Its:__Vice President, Finance & Treasurer_    * Indicates that certain information contained herein has been omitted and filed   separately with the Securities and Exchange Commission. Confidential treatment   has been requested with respect to the omitted portions.      

 

P.A. No. 2497 i SA-39   BOEING PROPRIETARY   TABLE OF CONTENTS   SA   ARTICLES NUMBER   1. Quantity, Model and Description 23   2. Delivery Schedule   3. Price   4. Payment   5. Miscellaneous   TABLE   1A. Aircraft Information Table – 737-990ER Aircraft 34   1B. Aircraft Information Table – 737-990ER Aircraft 37   1C. Aircraft Information Table – 737-990ER Aircraft 39   1D. Aircraft Information Table – 737-990ER Aircraft 39   EXHIBIT   A3. Aircraft Configuration – 737-990ER Aircraft 29   A4. Aircraft Configuration – 737-890 Aircraft (BSI) 27   A5. Aircraft Configuration – 737-990ER Aircraft 29   A6. Aircraft Configuration – 737-990ER Aircraft 37   B. Aircraft Delivery Requirements and Responsibilities 23   SUPPLEMENTAL EXHIBITS   AE1. Escalation Adjustment/Airframe and Optional Features 23   BFE1. BFE Variables 39   CS1. Customer Support Variables: 737-890 Aircraft 23   CS2. Customer Support Variables: 737-990ER Aircraft 23   EE1. Engine Escalation/Engine Warranty and Patent Indemnity 23   SLP1. Service Life Policy Components     

 

P.A. No. 2497 ii SA-39   BOEING PROPRIETARY         SA   LETTER AGREEMENT NUMBER      2497-1R21 Option Aircraft ...............................................................  37    Attachment 1 ..................................................................  37    Attachment 2 ..................................................................  37    Attachment 3 ..................................................................  39      2497-2R4 Aircraft Model Substitution ...........................................  37      2497-3R1 Seller Purchased Equipment ..........................................  23      2497-4R1 Demonstration Flight Waiver .........................................  23      2497-5R1 Customer Software .........................................................  23                SA   RESTRICTED LETTER AGREEMENT NUMBER       6-1162-MSA-588 Aircraft Performance Guarantees - .............................      Model 737-800 ............................................................        6-1162-MSA-589 [***] ............................................................................     [***] ............................................................................       6-1162-MSA-592R1 Special Purchase Agreement Provisions .....................  23      6-1162-SCR-112R3  Aircraft Performance Guarantees  ...............................  34    Model 737-990ER      6-1162-SCR-111R3 [***] ............................................................................  33    [***] ............................................................................       6-1162-SCR-124R3 [***] ............................................................................  29    Attachment A ..............................................................  29    Attachment B ..............................................................  29      ASA-PA-2497-LA-1106553R2   Promotional Support – 737-990ER Aircraft ..  34      ASA-PA-2497-LA-1208492R7  Aircraft Performance Guarantees ..................  39    Model 737-990ER      ASA-PA-2497-LA-1209641R4 Special Matters .............................................. 38                     * Indicates that certain information contained herein has been omitted and filed    separately with the Securities and Exchange Commission. Confidential treatment  has    been requested with respect to the omitted portions.      

 

P.A. No. 2497 iii SA-39   BOEING PROPRIETARY   ASA-PA-2497-LA-1209478      737 Production Adjustments .........................  29      6-1162-LLL-0140 Special Business Consideration – MSN 41735 ..............  36      ASA-PA-2497-LA-1403488R1 Special Matters – SA-37 and SA-39 ............. 39   RESTRICTED LETTER AGREEMENT NUMBER      6-1162-LLL-0130R3  Boeing Proposal Relating to Space Bins .................... 39      ASA-PA-2497-LA-1404217R1 [***] ........................................................................... 39     [***]      * Indicates that certain information contained herein has been omitted and filed    separately with the Securities and Exchange Commission. Confidential treatment  has    been requested with respect to the omitted portions.      

 

P.A. No. 2497 iv SA-39   BOEING PROPRIETARY   SUPPLEMENTAL AGREEMENTS ......................................................... DATED AS OF:   Supplemental Agreement No. 1 ................................................................ December 20, 2005   Supplemental Agreement No. 2 .................................................................... January 31, 2006   Supplemental Agreement No. 3 .................................................................. February 28, 2006   Supplemental Agreement No. 4 ...................................................................... March 31, 2006   Supplemental Agreement No. 5 ......................................................................... May 31, 2006   Supplemental Agreement No. 6 ......................................................................... June 30, 2006   Supplemental Agreement No. 7 .......................................................................... July 31, 2006   Supplemental Agreement No. 8.................................................. . October 31, 2006   Supplemental Agreement No. 9............................................... . November 30, 2006   Supplemental Agreement No. 10............................................. .. December 20, 2006   Supplemental Agreement No. 11................................................. .. January 31, 2007   Supplemental Agreement No. 12................................................... .. April 26, 2007   Supplemental Agreement No. 13.................................................... .. .July 31, 2007   Supplemental Agreement No. 14............................................. . September 24, 2007   Supplemental Agreement No. 15................................................. October 31, 2007   Supplemental Agreement No. 16................................................... January 5, 2009   Supplemental Agreement No. 17................................................ February 11, 2009   Supplemental Agreement No. 18................................................... .. April 22, 2009   Supplemental Agreement No. 19............................................... .. December 9, 2009   Supplemental Agreement No. 20.................................... .................... March 15, 2010   Supplemental Agreement No. 21.................................... ....................... June 18, 2010   Supplemental Agreement No. 22.................................... ....................... June 30, 2010   Supplemental Agreement No. 23 .................................................................. January 24, 2011   Supplemental Agreement No. 24 ........................................................................ July 27, 2011   Supplemental Agreement No. 25 ................................................................... October 7, 2011   Supplemental Agreement No. 26 ............................................................. November 30, 2011   Supplemental Agreement No. 27 .............................................................. December 23, 2011   Supplemental Agreement No. 28 ....................................................................... June 11, 2012   Supplemental Agreement No. 29 ................................................................. October 10, 2012     

 

P.A. No. 2497 v SA-39   BOEING PROPRIETARY   SUPPLEMENTAL AGREEMENTS ......................................................... DATED AS OF:   Supplemental Agreement No. 30 ................................................................ February 22, 2013   Supplemental Agreement No. 31 ....................................................................... May 16, 2013   Supplemental Agreement No. 32 ............................................................. September 25, 2013   Supplemental Agreement No. 33 .................................................................... January 2, 2014   Supplemental Agreement No. 34 ................................................................ February 28, 2014   Supplemental Agreement No. 35 ....................................................................... May 30, 2014   Supplemental Agreement No. 36 ....................................................................... June 26, 2014   Supplemental Agreement No. 37 ................................................................... October 6, 2014   Supplemental Agreement No. 38 .................................................................... January 8, 2015   Supplemental Agreement No. 39............................................................ February 12, 2015     

 

P.A. No. 2497 vi SA-39   BOEING PROPRIETARY   INACTIVE / DELETED TABLES, EXHIBITS, AND LETTER AGREEMENTS   TABLE   Table Title Last Updated under   SA   Current Status   1, pages 1 through   12 and 14   Table 1 to Purchase   Agreement No. PA-   02497   Various SAs Inactive   1, page 13 Table 1 to Purchase   Agreement No. PA-   02497   SA 27 Deleted under SA   29   1, pages 15.1   through 17   Table 1 to Purchase   Agreement No. PA-   02497   SA 28 Deleted under SA   29   EXHIBITS   Exhibit Title Last Updated under   SA   Current Status   A Aircraft Configuration –   737-890 Aircraft   SA-6 Inactive   A-1 Aircraft Configuration –   737-890 Aircraft   SA-20 Deleted under SA-   20   A-2 Aircraft Configuration –   737-890 Aircraft   SA-20 Inactive   LETTER AGREEMENTS   Letter Agreement Title Last Updated under   SA   Current Status   6-1162-IRS-118 Special Matters -   Economic Impact   SA-18 Deleted under SA-   19   6-1162-SCR-025R2  “Special Matters” –   Economic Impact   Aircraft -   Rescheduled delivery   dates   SA-22 Inactive   6-1162-SCR-028 Notice of Exercise by SA-19 Inactive     

 

P.A. No. 2497 vii SA-39   BOEING PROPRIETARY   Letter Agreement Title Last Updated under   SA   Current Status   Boeing of its Right to   Reschedule   Economic Impact   Aircraft   2497-6R6 Promotion Support   (737-890 Aircraft)   SA-16 Inactive   6-1162-SCR-027 Promotion Support -   [***] (737-890   Aircraft)   SA 19 Inactive   6-1162-LLL-004 Promotion Support   [***] (737-890   Aircraft)   SA 28 Inactive   6-1162-SCR-106R1 737-990ER Model   Open Configuration   Matters   SA 24 Inactive   6-1162-MSA-691R5 [***] SA-23 Inactive   Attachment A of 6-   1162-MSA-691R5   [***] SA-25 Inactive   Attachments 1A, 1B,   and 2 of 6-1162-MSA-   597   [***] SA 17 Deleted under SA   25   6-1162-MSA-597R23  Special Matters SA 29 Inactive    * Indicates that certain information contained herein has been omitted and filed   separately with the Securities and Exchange Commission. Confidential treatment  has   been requested with respect to the omitted portions.    

 

Table 1C To   Purchase Agreement No. PA-02497   Aircraft Delivery, Description, Price and Advance Payments   Page 1 of 2   ASA-PA-02497 70842-1F.TXT Boeing Proprietary SA 39   [***]   * Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange   Commission. Confidential treatment  has been requested with respect to the omitted portions.    

 

Table 1C To   Purchase Agreement No. PA-02497   Aircraft Delivery, Description, Price and Advance Payments      Page 2 of 2   ASA-PA-02497 70842-1F.TXT Boeing Proprietary SA 39                  [***]      * Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange    Commission. Confidential treatment  has been requested with respect to the omitted portions.      

 

Table 1D To   Purchase Agreement No. PA-02497   Aircraft Delivery, Description, Price and Advance Payments   Delivery Positions Identified by Quarter   Page 1 of 1   ASA-PA-02497 70842-1F.TXT Boeing Proprietary SA 39   [***]   * Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange    Commission. Confidential treatment  has been requested with respect to the omitted portions.      

 

ASA P.A. No. 2497  BFE1   SA-39   BOEING PROPRIETARY   BUYER FURNISHED EQUIPMENT VARIABLES      between      THE BOEING COMPANY      and      ALASKA AIRLINES, INC.         Supplemental Exhibit BFE1 to Purchase Agreement Number 2497           

 

   ASA P.A. No. 2497  BFE1-1     SA-39   BOEING PROPRIETARY               BUYER FURNISHED EQUIPMENT VARIABLES      relating to      BOEING MODEL 737-990ER AIRCRAFT      This Supplemental Exhibit BFE1 contains vendor selection dates, on-dock dates and other   variables applicable to the 737-990ER Aircraft.      1. Supplier Selection.       Customer will:      1.1  For 737-990ER Aircraft, select and notify Boeing of the suppliers and part   numbers of the following BFE items by the following dates:       Galley System    [***]        Galley Inserts    [***]        Seats (passenger)   [***]        Overhead & Audio System   [***]        In-Seat Video System   [***]        Miscellaneous Emergency  [***]      Equipment            Cargo Handling Systems  [***]            2.  On-dock Dates   On or before January 2012, Boeing will provide to Customer the BFE Requirements   electronically in My Boeing Fleet (MBF), through My Boeing Configuration (MBC).  These   requirements may be periodically revised, setting forth the items, quantities, on-dock dates and   shipping instructions and other requirements relating to the in-sequence installation of BFE.        For planning purposes, preliminary BFE on-dock dates are set forth below for 737-990ER   Aircraft:                     * Indicates that certain information contained herein has been omitted and filed    separately with the Securities and Exchange Commission. Confidential treatment has    been requested with respect to the omitted portions.      

 

   ASA P.A. No. 2497  BFE1-2     SA-39   BOEING PROPRIETARY         Item                                                     Preliminary On-Dock Dates   Delivery Date [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]      Item                                                            Preliminary On-Dock Dates   Delivery Date [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]                                                   * Indicates that certain information contained herein has been omitted and filed    separately with the Securities and Exchange Commission. Confidential treatment has    been requested with respect to the omitted portions.      

 

   ASA P.A. No. 2497  BFE1-3     SA-39   BOEING PROPRIETARY   Item                                                            Preliminary On-Dock Dates   Delivery Date [***] [***] [***] [***]    [***] [***] [***] [***] [***]    [***] [***] [***] [***] [***]    [***]   [***]  [***] [***] [***] [***]    [***] [***] [***] [***] [***]    [***] [***] [***] [***] [***]    [***]   [***]  [***] [***] [***] [***]    [***] [***] [***] [***] [***]    [***] [***] [***] [***] [***]    [***]  [***] [***] [***] [***]    [***] [***] [***] [***] [***]       Item                                                            Preliminary On-Dock Dates   Delivery Date [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]                                                         * Indicates that certain information contained herein has been omitted and filed    separately with the Securities and Exchange Commission. Confidential treatment has    been requested with respect to the omitted portions.      

 

   ASA P.A. No. 2497  BFE1-4     SA-39   BOEING PROPRIETARY   Item                                                            Preliminary On-Dock Dates   Delivery Date [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]      Item                                                            Preliminary On-Dock Dates   Delivery Date [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]                                                         * Indicates that certain information contained herein has been omitted and filed    separately with the Securities and Exchange Commission. Confidential treatment has    been requested with respect to the omitted portions.      

 

   ASA P.A. No. 2497  BFE1-5     SA-39   BOEING PROPRIETARY      Delivery Date [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]      Delivery Date [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***] [***] [***] [***] [***]   [***]  [***] [***] [***] [***]   [***] [***] [***] [***] [***]                                                         * Indicates that certain information contained herein has been omitted and filed    separately with the Securities and Exchange Commission. Confidential treatment has    been requested with respect to the omitted portions.      

 

   ASA P.A. No. 2497  BFE1-6     SA-39   BOEING PROPRIETARY   3. Additional Delivery Requirements - Import.   Customer will be the “importer of record” (as defined by the U.S. Customs and Border   Protection) for all BFE imported into the United States, and as such, it has the responsibility to   ensure all of Customer’s BFE shipments comply with U.S. Customs Service regulations.  In the   event Customer requests Boeing, in writing, to act as importer of record for Customer’s BFE, and   Boeing agrees to such request,  Customer is responsible for ensuring Boeing can comply with all   U.S. Customs Import Regulations by making certain that, at the time of shipment, all BFE   shipments comply with the requirements in the “International Shipment Routing Instructions”,   including the Customs Trade Partnership Against Terrorism (C-TPAT), as set out on the Boeing   website referenced below.  Customer agrees to include the International Shipment Routing   Instructions, including C-TPAT requirements, in each contract between Customer and BFE   supplier.      http://www.boeing.com/companyoffices/doingbiz/supplier_portal/index_general.html     

 

Attachment 3 to Option Aircraft Letter Agreement 2497-1R21   737-800Options   Aircraft Delivery, Description, Price and Advance Payments (1)   ASA  Page 1   68072 Boeing Proprietary SA-39   [***]   * Indicates that certain information contained herein has been omitted and filed separately with the Securities and    Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.      

 

                           ASA-PA-2497-LA-1208492R7    Performance Guarantees Page 1   SA-39   BOEING PROPRIETARY   The Boeing Company   P.O. Box 3707   Seattle, WA  98124-2207   * Indicates that certain information contained herein has been omitted and filed    separately with the Securities and Exchange Commission. Confidential    treatment has been requested with respect to the omitted portions.       ASA-PA-2497-LA-1208492R7         Alaska Airlines, Inc.   19300 International Blvd.   Seattle, Washington, 98188      Subject: Aircraft Performance Guarantees      Reference: Purchase Agreement No. PA-2497 (Purchase Agreement) between The   Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating   to Model 737-990ER aircraft       This letter agreement (Letter Agreement) cancels and supersedes Letter   Agreement ASA-PA-2497-LA-1208492R6 and amends and supplements the   Purchase Agreement.  All terms used but not defined in this Letter Agreement shall   have the same meaning as in the Purchase Agreement.   For the purposes of this Letter Agreement, Aircraft is defined to be the following:      Delivery Date Manufacturer Serial   Number   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]     

 

                     ASA-PA-2497-LA-1208492R7    Performance Guarantees Page 2   SA-39   BOEING PROPRIETARY   * Indicates that certain information contained herein has been omitted and filed    separately with the Securities and Exchange Commission. Confidential    treatment has been requested with respect to the omitted portions.    [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]     

 

                     ASA-PA-2497-LA-1208492R7    Performance Guarantees Page 3   SA-39   BOEING PROPRIETARY   * Indicates that certain information contained herein has been omitted and filed    separately with the Securities and Exchange Commission. Confidential    treatment has been requested with respect to the omitted portions.    [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]     

 

                     ASA-PA-2497-LA-1208492R7    Performance Guarantees Page 4   SA-39   BOEING PROPRIETARY   * Indicates that certain information contained herein has been omitted and filed    separately with the Securities and Exchange Commission. Confidential    treatment has been requested with respect to the omitted portions.    [***] [***]   *Note: The month of delivery has not yet been identified for   such Aircraft.  Boeing will identify the specific delivery   months no later than July 31, 2015 and will revise this Letter   Agreement accordingly.   Boeing agrees to provide Customer with the performance guarantees in the Attachment   to this Letter Agreement.  These guarantees are exclusive and expire upon delivery of   the Aircraft (as defined below) to Customer.  Customer agrees to limit the remedy for   non-compliance of any performance guarantee to the terms in Letter Agreement No. 6-   1162-SCR-111R3, as amended.    1. Assignment.   Notwithstanding any other provisions of the Purchase Agreement, the rights and   obligations described in this Letter Agreement are provided to Customer in   consideration of Customer’s becoming the operator of the Aircraft and cannot be   assigned in whole or, in part.   2. Confidential Treatment.   The information contained herein represents confidential business information and has   value precisely because it is not available generally or to other parties.  Customer will   limit the disclosure of its contents to employees of Customer with a need to know the   contents for purposes of helping Customer perform its obligations under the Purchase   Agreement and who understand they are not to disclose its contents to any other   person or entity without the prior written consent of Boeing.     

 

ASA-PA-2497-LA-1208492R7   Performance Guarantees Page 5   SA-39   BOEING PROPRIETARY   * Indicates that certain information contained herein has been omitted and filed   separately with the Securities and Exchange Commission. Confidential   treatment has been requested with respect to the omitted portions.   Very truly yours,   THE BOEING COMPANY   By    /s/ Lanine Lange   Its Attorney-In-Fact   ACCEPTED AND AGREED TO this   Date:   February 12, 2015   ALASKA AIRLINES, INC.    By   /s/ Mark Eliasen   Its VP/Finance & Treasurer     

 

Attachment to Letter Agreement   No. ASA-PA-2497-LA-1208492R7   CFM56-7B27E Engines   Page 1   P.A. No. 2497   AERO-B-BBA4-M12-0475B SS12-0231   BOEING PROPRIETARY   MODEL 737-900ER WITH WINGLETS PERFORMANCE GUARANTEES   FOR ALASKA AIRLINES, INC.   SECTION CONTENTS   1 AIRCRAFT MODEL APPLICABILITY   2 FLIGHT PERFORMANCE   3 MANUFACTURER'S EMPTY WEIGHT   4 SOUND LEVELS   5 AIRCRAFT CONFIGURATION   6 GUARANTEE CONDITIONS   7 GUARANTEE COMPLIANCE   8 EXCLUSIVE GUARANTEES     

 

Attachment to Letter Agreement   No. ASA-PA-2497-LA-1208492R7   CFM56-7B27E Engines   Page 2   P.A. No. 2497   AERO-B-BBA4-M12-0475B SS12-0231   BOEING PROPRIETARY   1. AIRCRAFT MODEL APPLICABILITY   The guarantees contained in this Attachment (the "Performance Guarantees") are   applicable to the 737-900ER Aircraft with winglets and a maximum takeoff   weight of [***] pounds, a maximum landing weight of [***] pounds, and a   maximum zero fuel weight of [***] pounds, and equipped with Boeing furnished   CFM56-7B27E engines.   2. FLIGHT PERFORMANCE   2.1 [***]   2.2 [***]   2.3 Mission   2.3.1 [***]   2.3.2 Operational Empty Weight Basis   The Operational Empty Weight (OEW) derived in Paragraph 2.3.3 is the basis for the   mission guarantee of Paragraph 2.3.1.   2.3.3 737-900ER Weight Summary - Alaska Airlines   Pounds   Standard Model Specification MEW [***]   Configuration Specification D019A001, Rev. N, Dated January 29, 2010   204 Tourist Class Passengers   CFM56-7 Engines   164,500 lb (74,615 kg) Maximum Taxi Weight   6,875 U.S. Gallons (26,024 liters) Fuel Capacity   * Indicates that certain information contained herein has been omitted and filed   separately with the Securities and Exchange Commission. Confidential treatment has been   requested with respect to the omitted portions.    

 

Attachment to Letter Agreement   No. ASA-PA-2497-LA-1208492R7   CFM56-7B27E Engines   Page 3   P.A. No. 2497   AERO-B-BBA4-M12-0475B SS12-0231   BOEING PROPRIETARY   Changes for Alaska Airlines   Interior Change to 181 Passengers (16 FC / 165 EC) [***]   (Ref: LOPA - 379-0595 Rev. K) Boeing Sky Interior   188,200 lb (85,366 kg) Maximum Taxi Weight [***]   Mid-Cabin Exit Door Plug With Full-Sized Passenger Window [***]   Extended Operations (ETOPS) [***]   Heads-Up Display (HUD) [***]   Standby Power - 60-Minute Capability [***]   Heavy Duty Cargo Compartment Linings/Panels [***]   Centerline Overhead Stowage Compartments (5) [***]   Winglets [***]   Customer Options Allowance [***]   Alaska Airlines Manufacturer's Empty Weight (MEW) [***]   Standard and Operational Items Allowance   (Paragraph 2.3.4)   [***]   Alaska Airlines Operational Empty Weight (OEW) [***]   Quantity Pounds Pounds   * Seat Weight Included: [***]   First Class Double [***] [***]   Economy Class Triple w/3 In-Arm Food Trays [***] [***]   Economy Class Triple [***] [***]   2.3.4 Standard and Operational Items Allowance   Qty Pounds Pounds Pounds   Standard Items Allowance [***]   * Indicates that certain information contained herein has been omitted and filed   separately with the Securities and Exchange Commission. Confidential treatment has been   requested with respect to the omitted portions.    

 

Attachment to Letter Agreement   No. ASA-PA-2497-LA-1208492R7   CFM56-7B27E Engines   Page 4   P.A. No. 2497   AERO-B-BBA4-M12-0475B SS12-0231   BOEING PROPRIETARY   Unusable Fuel [***]   Oil [***]   Oxygen Equipment [***]   Passenger Portable [***] [***]   Crew Masks [***] [***]   Miscellaneous Equipment [***]   Crash Axe [***] [***]   Megaphones [***] [***]   Flashlights [***] [***]   Smoke Hoods [***] [***]   Seat Belt Extensions [***] [***]   Galley Structure & Fixed Inserts [***]   Operational Items Allowance [***]   Crew and Crew Baggage [***]   Flight Crew [***] [***]   Cabin Crew [***] [***]   Baggage [***] [***]   Catering Allowance & Removable Inserts [***]   First Class [***] [***]   Economy Class [***] [***]   Passenger Service Equipment [***] [***]   Potable Water - 60 USG [***]   Waste Tank Disinfectant [***]   Emergency Equipment [***]   Escape Slides - Forward [***] [***]   Escape Slides - Aft [***] [***]   Life Vests - Crew and Passengers [***] [***]   Life Rafts [***] [***]   Auto Radio Beacon (ELT) [***] [***]   Total Standard and Operational Items Allowance [***]   * Indicates that certain information contained herein has been omitted and filed   separately with the Securities and Exchange Commission. Confidential treatment has been   requested with respect to the omitted portions.    

 

Attachment to Letter Agreement   No. ASA-PA-2497-LA-1208492R7   CFM56-7B27E Engines   Page 5   P.A. No. 2497   AERO-B-BBA4-M12-0475B SS12-0231   BOEING PROPRIETARY   3. MANUFACTURER'S EMPTY WEIGHT   The Manufacturer's Empty Weight (MEW) is guaranteed not to exceed the value   in Section 03-60-00 of Detail Specification D019A001ASA39E-1 plus one   percent.   4. SOUND LEVELS   4.1 Community Sound Levels   4.1.1 Certification   The Aircraft shall be certified in accordance with the requirements of 14CFR Part   36, Stage 4 and ICAO Annex 16, Volume 1, Chapter 4.   5. AIRCRAFT CONFIGURATION   5.1 The guarantees contained in this Attachment are based on the Aircraft   configuration as defined in the original release of Detail Specification   D019A001ASA39E-1 (hereinafter referred to as the Detail Specification).   Appropriate adjustment shall be made for changes in such Detail Specification   approved by the Customer and Boeing or otherwise allowed by the Purchase   Agreement which cause changes to the flight performance, sound levels, and/or   weight and balance of the Aircraft. Such adjustment shall be accounted for by   Boeing in its evidence of compliance with the guarantees.   5.2 [***]   (1) Changes to the Detail Specification or any other changes mutually agreed   upon between the Customer and Boeing or otherwise allowed by the Purchase   Agreement.   (2) The difference between the component weight allowances given in   Appendix IV of the Detail Specification and the actual weights.   6. GUARANTEE CONDITIONS      * Indicates that certain information contained herein has been omitted and filed   separately with the Securities and Exchange Commission. Confidential treatment has been   requested with respect to the omitted portions.    

 

Attachment to Letter Agreement   No. ASA-PA-2497-LA-1208492R7   CFM56-7B27E Engines   Page 6   P.A. No. 2497   AERO-B-BBA4-M12-0475B SS12-0231   BOEING PROPRIETARY   6.1 All guaranteed performance data are based on the International Standard   Atmosphere (ISA) and specified variations therefrom; altitudes are pressure   altitudes.   6.2 The Federal Aviation Administration (FAA) regulations referred to in this   Attachment are, unless otherwise specified, the 737-900ER Certification Basis   regulations specified in the Type Certificate Data Sheet A16WE, Revision 40,   dated April 27, 2007.   6.3 In the event a change is made to any law, governmental regulation or requirement,   or in the interpretation of any such law, governmental regulation or requirement   that affects the certification basis for the Aircraft as described in Paragraphs 4.1 or   6.2, and as a result thereof, a change is made to the configuration and/or the   performance of the Aircraft in order to obtain certification, the guarantees set   forth in this Attachment shall be appropriately modified to reflect any such   change.   6.4 [***]   6.5 [***]   6.6 [***]   6.7 [***]   7. GUARANTEE COMPLIANCE   7.1 Compliance with the guarantees of Sections 2, 3 and 4 shall be based on the   conditions specified in those sections, the Aircraft configuration of Section 5 and   the guarantee conditions of Section 6.   7.2 [***]   7.3 Compliance with the climb, cruise and descent portions of the mission guarantee   shall be established by calculations based on flight test data obtained from an   aircraft in a configuration similar to that defined by the Detail Specification.      * Indicates that certain information contained herein has been omitted and filed   separately with the Securities and Exchange Commission. Confidential treatment has been   requested with respect to the omitted portions.    

 

Attachment to Letter Agreement   No. ASA-PA-2497-LA-1208492R7   CFM56-7B27E Engines   Page 7   P.A. No. 2497   AERO-B-BBA4-M12-0475B SS12-0231   BOEING PROPRIETARY   7.4 The OEW used for compliance with the mission guarantee shall be the actual   MEW plus the Standard and Operational Items Allowance in Paragraph 03-60-00   of the Detail Specification.   7.5 Compliance with the Manufacturer's Empty Weight guarantee shall be based on   information in the "Weight and Balance Control and Loading Manual - Aircraft   Report."   7.6 The data derived from tests shall be adjusted as required by conventional methods   of correction, interpolation or extrapolation in accordance with established   engineering practices to show compliance with these guarantees.   7.7 Compliance shall be based on the performance of the airframe and engines in   combination, and shall not be contingent on the engine meeting its manufacturer's   performance specification   8. EXCLUSIVE GUARANTEES   The only performance guarantees applicable to the Aircraft are those set forth in   this Attachment.     

 

ASA-PA-2497-LA-1403488R1 Page 1   Special Matters – SA-37 and SA-39 SA-39   BOEING PROPRIETARY   The Boeing Company   P.O. Box 3707   Seattle, WA  98124-2207   * Indicates that certain information contained herein has been omitted and filed   separately with the Securities and Exchange Commission. Confidential treatment  has   been requested with respect to the omitted portions.   ASA-PA-2497-LA-1403488R1   Alaska Airlines, Inc.   P.O. Box 68900   Seattle, WA 98168-0900   Subject: Special Matters – SA-37 and SA-39   Reference: Purchase Agreement No. 2497 (Purchase Agreement) between The   Boeing Company (Boeing) and Alaska Airlines, Inc. (Customer) relating   to Boeing Models 737-800 aircraft (737-890 Aircraft) and 737-900ER   aircraft (737-990ER Aircraft)   This letter agreement (Letter Agreement) amends and supplements the   Purchase Agreement.  This Letter Agreement applies to the 737-990ER Aircraft listed   below (collectively, Aircraft), Option Aircraft, and Substitute Aircraft, unless otherwise   specified in this Letter Agreement.  For the purposes of this Letter Agreement, the   Option Aircraft will mean Aircraft after Customer exercises the Option Aircraft and the   Substitute Aircraft will mean Aircraft after Customer elects to substitute the purchase of   the 737-990ER aircraft in lieu of the 737-890 Aircraft.  All terms used but not defined in   this Letter Agreement shall have the same meaning as in the Purchase Agreement.   Contract Delivery   Month   Manufacturer Serial   Number   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]     

 

ASA-PA-2497-LA-1403488R1 Page 2   Special Matters – SA-37 and SA-39 SA-39   BOEING PROPRIETARY   * Indicates that certain information contained herein has been omitted and filed   separately with the Securities and Exchange Commission. Confidential treatment  has   been requested with respect to the omitted portions.   Contract Delivery   Month   Manufacturer Serial   Number   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   *Note: The month of delivery has not yet been identified for such Aircraft.  Boeing will identify the   specific delivery months no later than July 31, 2015 and will revise this Letter Agreement   accordingly.   1. Credit Memoranda.   1.1 Basic Credit Memorandum. Concurrent with the delivery of each Aircraft,   Boeing will provide a Basic Credit Memorandum in an amount determined by multiplying   the Airframe Price by a factor of [***].   1.2 [***] Concurrent with the delivery of each Aircraft, Boeing will provide a   [***] in an amount determined by multiplying the Airframe Price by a factor of [***].   1.3 [***] Credit Memoranda.   1.3.1 [***] Credit Memorandum #1. Concurrent with the delivery of each   Aircraft, Boeing will provide a [***] Credit Memorandum #1 in an amount determined by   multiplying the Airframe Price by a factor of [***].     

 

ASA-PA-2497-LA-1403488R1 Page 3   Special Matters – SA-37 and SA-39 SA-39   BOEING PROPRIETARY   * Indicates that certain information contained herein has been omitted and filed   separately with the Securities and Exchange Commission. Confidential treatment  has   been requested with respect to the omitted portions.   1.3.2 [***] Credit Memorandum #2. Concurrent with the delivery of each   737-890 Aircraft, Boeing will issue to Customer a [***] Credit Memorandum #2 in an   amount of [***].    1.3.3 [***] Credit Memorandum #2. Concurrent with the delivery of each   737-990ER Aircraft, Boeing will issue to Customer a [***] Credit Memorandum #2 in an   amount of [***].   1.3.4 [***] Credit Memorandum #3. Concurrent with the delivery of each   737-890 Aircraft, Boeing will issue to Customer a [***] Credit Memorandum #3 in an   amount of [***].    1.3.5 [***] Credit Memorandum #3. Concurrent with the delivery of each   737-990ER Aircraft, Boeing will issue to Customer a [***] Credit Memorandum #3 in an   amount of [***].   1.3.6 [***] Credit Memorandum #4. Concurrent with the delivery of each   737-890 Aircraft, Boeing will issue to Customer a [***] Credit Memorandum #4 in an   amount of [***].   1.3.7 [***] Credit Memorandum #4.  Concurrent with the delivery of each   737-990ER Aircraft, Boeing will issue to Customer a [***] Credit Memorandum #4 in an   amount of [***].   1.3.8 [***]   1.4 [***] Credit Memorandum.   1.4.1 [***] Credit Memorandum. Concurrent with the delivery of each 737-   890 Aircraft, Boeing will provide a [***] Credit Memorandum in an amount [***].   1.4.2 [***] Credit Memorandum. Concurrent with the delivery of each 737-   990ER Aircraft, Boeing will provide a [***] Credit Memorandum in an amount [***].   2. Escalation of Credit Memoranda.   Unless otherwise noted, the amounts of the Credit Memoranda stated in   paragraphs 1.1 through 1.4 are in [***].  The Credit Memoranda will be escalated to the   scheduled month of the respective Aircraft delivery pursuant to the Airframe Escalation   formula set forth in the Purchase Agreement applicable to the Aircraft.  [***]     

 

ASA-PA-2497-LA-1403488R1 Page 4   Special Matters – SA-37 and SA-39 SA-39   BOEING PROPRIETARY   * Indicates that certain information contained herein has been omitted and filed   separately with the Securities and Exchange Commission. Confidential treatment  has   been requested with respect to the omitted portions.   3. Option Aircraft.   Pursuant to the Option Aircraft Letter Agreement 2497-1, as amended, of the   Purchase Agreement (Option Aircraft Letter Agreement), Customer may exercise its   rights to purchase certain Option Aircraft.  [***]    4. Substitute Aircraft.   Pursuant to the Aircraft Model Substitution Letter Agreement 2497-2 of the   Purchase Agreement, as amended (Substitute Aircraft Letter Agreement), Customer   may substitute the purchase of Boeing Model 737-900ER aircraft in lieu of 737-890   Aircraft.  [***]   5. Assignment.   Unless otherwise noted herein, the Credit Memoranda described in this Letter   Agreement are provided as a financial accommodation to Customer and in   consideration of Customer’s taking title to the Aircraft at time of delivery and becoming   the operator of the Aircraft.  This Letter Agreement cannot be assigned, in whole or in   part, without the prior written consent of Boeing.   6. Confidentiality.   Customer understands and agrees that the information contained herein   represents confidential business information and has value precisely because it is not   available generally or to other parties.  Customer agrees to limit the disclosure of its   contents to employees of Customer with a need to know the contents for purposes of   helping Customer perform its obligations under the Purchase Agreement and who   understand they are not to disclose its contents to any other person or entity without the   prior written consent of Boeing.       

 

ASA-PA-2497-LA-1403488R1 Page 5   Special Matters – SA-37 and SA-39 SA-39   BOEING PROPRIETARY   * Indicates that certain information contained herein has been omitted and filed   separately with the Securities and Exchange Commission. Confidential treatment  has   been requested with respect to the omitted portions.   Very truly yours,   THE BOEING COMPANY   By    /s/ Lanine Lange   Its Attorney-In-Fact   ACCEPTED AND AGREED TO this   Date:   February 12, 2015                   ALASKA AIRLINES, INC.   By        /s/ Mark Eliasen   Its VP/Finance & Treasurer     

 

ASA-PA-2497-LA-1404217R1 Page 1   [***] SA-39   BOEING PROPRIETARY   The Boeing Company   P.O. Box 3707   Seattle, WA  98124-2207   * Indicates that certain information contained herein has been omitted and filed   separately with the Securities and Exchange Commission. Confidential treatment  has   been requested with respect to the omitted portions.   ASA-PA-2497-LA-1404217R1   Alaska Airlines, Inc.   P.O. Box 68900   Seattle, WA 98168-0900   Subject: [***]   Reference: (a) Purchase Agreement No. 2497 (Purchase Agreement) between   The Boeing Company (Boeing) and Alaska Airlines, Inc.   (Customer) relating to Boeing Models 737-800 aircraft and 737-   900ER aircraft   (b) Master Change No. 2500E364F54 dated October 13, 2014, entitled   “MP – Interior Arrangement – Revision – Forward LH Closet with   Fold Down Table – SFE Full Height in lieu of BFE Underbin –   Drissen – BFE” (Master Change)   (c) Proposal No. ASA-MO-1401866, “Interior Retrofit Services Order –   Space Bins”, as amended (Retrofit Proposal)   This letter agreement (Letter Agreement) cancels and supersedes Letter   Agreement ASA-PA-2497-LA-1404217 and amends and supplements the Purchase   Agreement.  This Letter Agreement applies to the 737-990ER Aircraft listed below   (collectively, Full Closet Eligible Aircraft).  All terms used but not defined in this Letter   Agreement shall have the same meaning as in the Purchase Agreement.   Contract Delivery   Month   Manufacturer Serial   Number   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]     

 

ASA-PA-2497-LA-1404217R1 Page 2   [***] SA-39   BOEING PROPRIETARY   * Indicates that certain information contained herein has been omitted and filed   separately with the Securities and Exchange Commission. Confidential treatment  has   been requested with respect to the omitted portions.   Contract Delivery   Month   Manufacturer Serial   Number   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]   [***] [***]     

 

ASA-PA-2497-LA-1404217R1 Page 3   [***] SA-39   BOEING PROPRIETARY   * Indicates that certain information contained herein has been omitted and filed   separately with the Securities and Exchange Commission. Confidential treatment  has   been requested with respect to the omitted portions.   Contract Delivery   Month   Manufacturer Serial   Number   [***] [***]   [***] [***]   [***] [***]   [***] [***]   1. [***]   Boeing Model [***]   737-900ER [***]   1.2 [***] and will be escalated to the scheduled month of the respective Full   Closet Eligible Aircraft delivery pursuant to the Airframe Escalation formula set forth in   the Purchase Agreement applicable to the Full Closet Eligible Aircraft.  [***]   2. Assignment.   The [***] described in this Letter Agreement is provided as a [***] to Customer   and in consideration of Customer’s taking title to the Aircraft at time of delivery and   becoming the operator of the Aircraft.  This Letter Agreement cannot be assigned, in   whole or in part, without the prior written consent of Boeing.   3. Confidentiality.   Customer understands and agrees that the information contained herein   represents confidential business information and has value precisely because it is not   available generally or to other parties.  Customer agrees to limit the disclosure of its   contents to employees of Customer with a need to know the contents for purposes of   helping Customer perform its obligations under the Purchase Agreement and who   understand they are not to disclose its contents to any other person or entity without the   prior written consent of Boeing.       

 

                  ASA-PA-2497-LA-1404217R1 Page 4   [***]  SA-39   BOEING PROPRIETARY   * Indicates that certain information contained herein has been omitted and filed    separately with the Securities and Exchange Commission. Confidential treatment  has    been requested with respect to the omitted portions.    Very truly yours,       THE BOEING COMPANY   By       Its Attorney-In-Fact         ACCEPTED AND AGREED TO this      Date: ______________________________      ALASKA AIRLINES, INC.      By       Its VP/Finance & Treasurer

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