Document:

exv10w3

 

EXHIBIT 10.3

FIRST AMENDMENT

     This FIRST AMENDMENT (“Amendment”), dated as of April 10, 2006 (the
“Effective Date”), is by and among Brigham Oil & Gas, L.P., a Delaware limited partnership
(the “Borrower”), Brigham Exploration Company, a Delaware corporation (“Brigham
Exploration”), Brigham Inc., a Nevada corporation (the “General Partner”, together with
Brigham Exploration, each a “Guarantor” and collectively the “Guarantors”, and
together with Brigham Exploration and the Borrower, each a “Credit Party” and collectively
the “Credit Parties”), the Lenders party hereto, and Bank of America, N.A., as
administrative agent for the Lenders (in such capacity, the “Administrative Agent”).

     WHEREAS, the Borrower, the Guarantors, the lenders from time to time party thereto (the
“Lenders”), and the Administrative Agent are parties to the Fourth Amended and Restated
Credit Agreement, dated as of June 29, 2005 (the “Credit Agreement”);

     WHEREAS, Brigham Exploration desires to issue up to $125,000,000 of senior unsecured notes
(the “Senior Note Issuance”);

     WHEREAS, the Senior Note Issuance is not permitted under Section 6.02 of the Credit Agreement;

     NOW THEREFORE, in consideration of the premises and the mutual covenants,
representations and warranties contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

AGREEMENT

     Section 1. Defined Terms. Unless otherwise defined in this Amendment, each
capitalized term used in this Amendment has the meaning given such term in the Credit Agreement.

     Section 2. Amendment of the Credit Agreement.

          (a) Section 1.01 of the Credit Agreement is hereby amended by (i) replacing the definition of
“Guarantor” with the following definition of such term and (ii) adding the following new
definitions in appropriate alphabetical order:

     “Guarantor” means Brigham Exploration, the General Partner, each
Subsidiary of the Borrower, and each other Subsidiary of Brigham Exploration (if
any) that becomes a guarantor of the Obligations as contemplated in Section 5.12.

     “Permitted Senior Notes” means senior unsecured notes issued by Brigham
Exploration pursuant to one or more Senior Note Indentures in compliance with
Section 6.02(l).

     “Senior Note Indenture” means an indenture among Brigham Exploration,
as issuer, the Borrower, as a guarantor, any other guarantors party thereto and a

 

 

trustee, pursuant to which Permitted Senior Notes are issued, as amended or
supplemented as permitted by Section 6.23.

             (b) Section 6.02 of the Credit Agreement is hereby amended by deleting “and” at the end of
subsection (j) thereof, deleting “.” at the end of subsection (k) thereof and replacing it with “;
and”, and adding a new subsection (l) as follows:

      (l) Debt of Brigham Exploration under Permitted Senior Notes and any guarantees
thereof by the Borrower and the Guarantors, provided that: (i) immediately before,
and after giving effect to, the incurrence of any such Debt, no Event of Default
exists or would exist, (ii) the cash pay interest rate on such Permitted Senior
Notes is less than 10% per annum (or otherwise reasonably satisfactory to the
Administrative Agent), (iii) such Permitted Senior Notes do not prohibit prior
repayment of Advances, (iv) such Permitted Senior Notes are not secured and do not
impose any financial ratio maintenance covenants that are materially more
restrictive or burdensome to the Credit Parties than the terms and provisions of the
Loan Documents as in effect from time to time, (v) at the time any such Permitted
Senior Notes are issued, the Borrowing Base then in effect shall be automatically
reduced to $50,000,000, and the Borrowing Base as so reduced shall become the new
Borrowing Base immediately upon the date of such issuance, effective and applicable
to the Borrower, the Agents, each Issuing Bank and the Lenders on such date until
the next redetermination or modification thereof hereunder, and (vi) the stated
aggregate principal amount of such Permitted Senior Notes may not exceed
$125,000,000. (For purposes of this Section 6.02(l), the “stated aggregate
principal amount” shall mean the stated face amount of the Permitted Senior Notes
without giving effect to any original issue discount). In addition, to the extent
that the terms of such Permitted Senior Notes require any scheduled payment on
account of principal (whether by redemption, purchase, retirement, defeasance,
set-off or otherwise) prior to the Maturity Date, such terms must also provide that
payments or prepayments of principal on the Advances may, at the election of Brigham
Exploration, be made prior to making of any such scheduled payment on the Permitted
Senior Notes. Brigham Exploration hereby agrees that, unless otherwise permitted by
the Majority Lenders, it will exercise such election and not make any such scheduled
payment on the Permitted Senior Notes unless the Advances have first been paid in
full and the Letter of Credit Exposure has been Cash Collateralized and the Borrower
has agreed that it will not request any further Advances until the Borrowing Base
has been redetermined.

      (c) A new Section 6.23 of the Credit Agreement is hereby added as follows:

      Section 6.23. Permitted Senior Notes.

      (a) No Credit Party may make any optional, mandatory or scheduled payments or
prepayments on account of principal (whether by redemption, purchase, retirement,
defeasance, set-off or otherwise) in respect of any Permitted Senior Notes issued
pursuant to Section 6.02(l) prior to the Maturity Date unless

-2-

 

(i) otherwise permitted by the Majority Lenders, or (ii) (A) the Advances have first
been paid in full and the Letter of Credit Exposure has been Cash Collateralized and
(B) the Borrower has agreed that it will not request any further Advances until the
Borrowing Base has been redetermined; provided nothing in this Section 6.23 shall
prohibit (x) any payment of interest, including by payment in kind or by compounding
or (y) the payment of any fees or expenses, including, without limitation, any
underwriting or initial purchasers’ discount, in connection with the issuance of the
Permitted Senior Notes.

     (b) No Credit Party shall amend, supplement or otherwise modify the terms of
any Senior Note Indenture if such amendment, supplement or other modification would
not be permitted by the terms of Section 6.02(l).

     (c) Brigham Exploration shall use the proceeds of the Permitted Senior Notes to
repay and retire the indebtedness outstanding under the Subordinated Credit
Agreement.

     Section 3. Conditions to Effectiveness. This Amendment shall become effective as of
the Effective Date when the Administrative Agent shall have received counterparts hereof duly
executed by the Borrower, each Guarantor, the Administrative Agent and the Majority Lenders.

     Section 4. Representations and Warranties. Each Credit Party hereby represents and
warrants that after giving effect hereto:

               (a) the representations and warranties of such Credit Party contained in the Loan Documents
are true and correct in all material respects on and as of the Effective Date and will be true and
correct as of the date of the Senior Note Issuance, after giving effect to the Senior Note
Issuance, other than those representations and warranties that expressly relate solely to a
specific earlier date, which shall remain correct as of such earlier date; and

               (b) no Default or Event of Default has occurred and is continuing.

     Section 5. Governing Law. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK AND THE APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

     Section 6. Counterparts. This Amendment may be executed in any number of counterparts
and by different parties hereto in separate counterparts, each of which when so executed shall be
deemed to be an original and all of which taken together shall constitute one and the same
agreement. Transmission by facsimile of an executed counterpart of this Amendment shall be deemed
to constitute due and sufficient delivery of such counterpart.

[Remainder of Page Intentionally Left Blank]

-3-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered by their respective duly authorized officers as of the Effective Date.

	 	 	 	 	 
	 	BORROWER:

BRIGHAM OIL & GAS, L.P.

 	 
	 	By:  	Brigham, Inc., its general partner
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	     /s/ Warren J. Ludlow.
 	 
	 	 	Warren J. Ludlow 	 
	 	 	Secretary 	 
	 
	 	GUARANTORS:

BRIGHAM EXPLORATION COMPANY

 	 
	 	By:  	/s/ Warren J. Ludlow.
 	 
	 	 	Warren J. Ludlow 	 
	 	 	Secretary 	 
	 
	 	BRIGHAM, INC.

 	 
	 	By:  	/s/ Warren J. Ludlow.
 	 
	 	 	Warren J. Ludlow 	 
	 	 	Secretary 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT:

BANK OF AMERICA, N.A.,

as Administrative Agent

 	 
	 	By:  	/s/ Matthew Correia
 	 
	 	 	Matthew C. Correia 	 
	 	 	Assistant Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	LENDERS:

BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/ Jeffrey Rathkamp
 	 
	 	 	Jeffrey H. Rathkamp 	 
	 	 	Director 	 
	 

Signature Page to Amendment No. 1

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

 

 

	 	 	 	 	 
	 	THE ROYAL BANK OF SCOTLAND plc

 	 
	 	By:  	/s/ Scott L. Joyce
 	 
	 	 	Name:  	Scott L. Joyce 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	BNP PARIBAS

 	 
	 	By:  	/s/ Gabe Ellisor
 	 
	 	 	Name:  	Gabe Ellisor 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 
	 	By:  	                                              /s/ Robert Long
 	 
	 	 	Name:  	Robert Long 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	NATEXIS BANQUES POPULAIRES

 	 
	 	By:  	/s/ Donovan C. Broussard
 	 
	 	 	Name:  	Donovan C. Broussard 	 
	 	 	Title:  	Vice President and Group Manager 	 
	 
	 	 	 
	 	By:  	                                              /s/ Timothy L. Polvado
 	 
	 	 	Name:  	Timothy L. Polvado 	 
	 	 	Title:  	Vice President and Group Manager 	 
	 

Signature Page to Amendment No. 1

 

 

	 	 	 	 	 
	 	HIBERNIA NATIONAL BANK

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amendment No. 1exv10w1

 

Exhibit 10.1

Supplemental Agreement No. 46

to

Purchase Agreement No. 1810

between

THE BOEING COMPANY

and

SOUTHWEST AIRLINES CO.

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

     THIS SUPPLEMENTAL AGREEMENT, entered into as of January 27, 2006, by and between THE BOEING
COMPANY, a Delaware corporation with principal offices in Seattle, Washington, (Boeing) and
SOUTHWEST AIRLINES CO., a Texas corporation with principal offices in Dallas, Texas (Buyer);

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

     WHEREAS, Buyer has agreed to exercise one (1) April 2007 Block U-W Option Aircraft (April 2007
Aircraft) and exercise one (1) May 2007 Block U-W Option Aircraft (May 2007 Aircraft) and;

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

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

2. Table 1 is deleted in its entirety and replaced by a new Table 1 which is attached hereto and is
incorporated into the Agreement by this reference.

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

			
	 	 	 
	P.A. No. 1810
	 	SA-46-1
	K/SWA	 	 

 

 

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

NOTE — Buyer now has fifty-five (55) ‘banked’ Rollover Option Aircraft as a result of the
option exercises covered by Supplemental Agreement No. 21, 23, 24, 26, 27, 28, 29, 30, 31, 32,
33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45 and 46 that may be converted to Option
Aircraft at a future date subject to the terms of Letter Agreement No. 6-1162-RLL-933R19.

4. Attachment A to Letter Agreement No. 6-1162-JMG-669R6 entitled “Special Matters” is deleted in
its entirety and replaced with new Attachment A to Agreement No. 6-1162-JMG-669R6 entitled “Special
Matters” attached hereto and is hereby incorporated into the Agreement by this reference.

5. Letter Agreement No. 6-1162-NIW-1369 entitled *** previously executed on December 7, 2005 has
been administratively incorporated into the Agreement by this reference.

6. All references in the Letter Agreements associated with Purchase Agreement No. 1810 shall be
deemed to refer to the purchase by Buyer of two hundred ninety-one (291) Model 737-7H4 Aircraft,
thirty-two (32) Model 737-7H4 Option Aircraft and two hundred seventeen (217) Model 737-7H4
Rollover Option Aircraft, to the extent such reference is not specifically addressed herein.

7. The Advance Payments due upon signing assuming execution of this Supplemental Agreement on or
before January 31, 2006 are:

*** for one (1) April 2007 aircraft

*** for one (1) May 2007 aircraft

Buyer will pay the *** directly to Boeing on or before Tuesday, January 31, 2006.

8. As Boeing informed Buyer previously, the International Association of Machinists and Aerospace
Workers began a labor stoppage on September 2, 2005 and it concluded on September 29, 2005 (The
Strike). Due to the Strike impact, Boeing currently forecasts April 2007 Aircraft to be tendered
for delivery in May 2007. Boeing will continue to evaluate the possibility of delivering April
2007 Aircraft in its Contract Delivery Month. If Boeing delays delivery of April 2007 Aircraft,
such delay is

			
	 	 	 
	P.A. No. 1810
	 	SA-46-2
	K/SWA	 	 

 

 

considered to be Excusable Delay in accordance with Article 6 of the Agreement. Further,
the Advance Payment schedule for April 2007 Aircraft has been adjusted to reflect the current
forecast delivery month of May 2007.

			
	 	 	 
	P.A. No. 1810
	 	SA-46-3
	K/SWA	 	 

 

 

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

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

	 	 	 	 	 	 	 	 	 
	THE BOEING COMPANY	 	SOUTHWEST AIRLINES CO.	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Nobuko Wiles
	 	By:
	 	/s/ Laura Wright	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Its:

	 	Attorney-In-Fact
	 	Its:
	 	SVP Finance & CFO	 	 
	 

	 	 	 	 	 	 	 	 

			
	 	 	 
	P.A. No. 1810
	 	SA-46-4
	K/SWA	 	 

 

 

TABLE OF CONTENTS

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

					
	 	 	 	 	 
	P.A. No. 1810
	 	i	 	 
	K/SWA
	 	 	 	SA-46

 

 

TABLE OF CONTENTS CON’T

	 	 	 	 	 	 	 
	 	 	 	 	SA	 
	 	 	 	 	Number	 
	 
	 	 	 	 	 	 
	TABLE	 	 	 	 
	 
	 	 	 	 	 	 
	1.
	 	Aircraft Information Table	 	SA-46
	 
	 	 	 	 	 	 
	2.
	 	Option Aircraft Information Table	 	SA-46
	 
	 	 	 	 	 	 
	EXHIBITS	 	 	 	 
	 
	 	 	 	 	 	 
	A
	 	Aircraft Configuration	 	SA-36
	 
	 	 	 	 	 	 
	B
	 	Product Assurance Document	 	SA-1
	 
	 	 	 	 	 	 
	C
	 	Customer Support Document	 	 	 	 
	 
	 	 	 	 	 	 
	D
	 	Price Adjustments Due to Economic Fluctuations - Aircraft	 	SA-13
	 
	 	 	 	 	 	 
	E
	 	Buyer Furnished Equipment Provisions Document	 	 	 	 
	 
	 	 	 	 	 	 
	F
	 	Defined Terms Document	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	LETTER AGREEMENTS	 	 	 	 
	 
	 	 	 	 	 	 
	1810-1
	 	Waiver of Aircraft Demonstration Flight	 	 	 	 

					
	 	 	 	 	 
	P.A. No. 1810
	 	ii	 	 
	K/SWA
	 	 	 	SA-46

 

 

TABLE OF CONTENTS CON’T

	 	 	 	 	 	 	 
	 	 	 	 	SA	 
	 	 	 	 	Number	 
	RESTRICTED LETTER AGREEMENTS	 	 	 	 
	 
	 	 	 	 	 	 
	6-1162-RLL-932R2
	 	Promotional Support	 	SA-13
	 
	 	 	 	 	 	 
	6-1162-RLL-933R19
	 	Option Aircraft	 	SA-28
	 
	 	 	 	 	 	 
	6-1162-RLL-934R3
	 	Disclosure of Confidential	 	SA-14
	 
	 	Information	 	 	 	 
	 
	 	 	 	 	 	 
	6-1162-RLL-935R1
	 	Performance Guarantees	 	SA-1
	 
	 	 	 	 	 	 
	6-1162-NIW-890
	 	***	 	SA-39
	 
	 	 	 	 	 	 
	6-1162-RLL-936R4
	 	Certain Contractual Matters	 	SA-4
	 
	 	 	 	 	 	 
	6-1162-RLL-937
	 	Alternate Advance Payment Schedule	 	 	 	 
	 
	 	 	 	 	 	 
	6-1162-RLL-938
	 	***	 	 	 	 
	 
	 	 	 	 	 	 
	6-1162-RLL-939R1
	 	Certification Flight Test Aircraft	 	SA-1
	 
	 	 	 	 	 	 
	6-1162-RLL-940R1
	 	Training Matters	 	SA-1
	 
	 	 	 	 	 	 
	6-1162-RLL-941R2
	 	Other Matters	 	SA-13
	 
	 	 	 	 	 	 
	6-1162-RLL-942
	 	Open Configuration Matters	 	 	 	 
	 
	 	 	 	 	 	 
	6-1162-RLL-943R1
	 	Substitution Rights	 	SA-6
	 
	 	 	 	 	 	 
	6-1162-RLL-944
	 	Airframe Maintenance Material Cost	 	 	 	 
	 
	 	Protection Program	 	 	 	 
	 
	 	 	 	 	 	 
	6-1162-RLL-945
	 	Comparison of 737-7H4 and 737-3H4	 	 	 	 
	 
	 	Block Fuel Burn	 	 	 	 
	 
	 	 	 	 	 	 
	6-1162-RLL-1855R3
	 	Additional Contractual Matters	 	SA-4
	 
	 	 	 	 	 	 
	6-1162-RLL-1856
	 	***	 	SA-1
	 
	 	 	 	 	 	 
	6-1162-RLL-1857
	 	Service Ready Validation Program	 	SA-1
	 
	 	Field Test	 	 	 	 
	 
	 	 	 	 	 	 
	6-1162-RLL-1858R1
	 	Escalation Matters	 	SA-4

					
	 	 	 	 	 
	P.A. No. 1810
	 	iii	 	 
	K/SWA
	 	 	 	SA-46

 

 

TABLE OF CONTENTS CON’T

	 	 	 	 	 	 	 
	 	 	 	 	SA	 
	 	 	 	 	Number	 
	RESTRICTED LETTER AGREEMENTS	 	 	 	 
	 
	 	 	 	 	 	 
	6-1162-RLL-2036
	 	Amortization of Costs for	 	 	 	 
	 
	 	Customer Unique Changes	 	SA-1
	 
	 	 	 	 	 	 
	6-1162-RLL-2037
	 	Reconciliation of the Aircraft	 	SA-1
	 
	 	Basic Price	 	 	 	 
	 
	 	 	 	 	 	 
	6-1162-RLL-2073
	 	Maintenance Training Matters	 	SA-1
	 
	 	 	 	 	 	 
	6-1162-KJJ-054
	 	Business Matters	 	SA-13
	 
	 	 	 	 	 	 
	6-1162-KJJ-055R1
	 	Structural Matters	 	SA-25
	 
	 	 	 	 	 	 
	6-1162-KJJ-056
	 	Noise and Emission Matters	 	SA-13
	 
	 	 	 	 	 	 
	6-1162-KJJ-057
	 	Product Development Matters	 	SA-13
	 
	 	 	 	 	 	 
	6-1162-KJJ-058
	 	Additional Substitution Rights	 	SA-13
	 
	 	 	 	 	 	 
	6-1162-KJJ-150
	 	Flight Control Computer & Mode	 	SA-14
	 
	 	Control Panel Spares Matter	 	 	 	 
	 
	 	 	 	 	 	 
	6-1162-MSA-185R3
	 	Delivery Change Contractual	 	SA-21
	 
	 	Matters	 	 	 	 
	 
	 	 	 	 	 	 
	6-1162-JMG-669R6
	 	Special Matters	 	SA-45
	 
	 	 	 	 	 	 
	New Attachment A
	 	 	 	SA-46
	 
	 	 	 	 	 	 
	6-1162-JMG-747R1
	 	***	 	SA-36
	 
	 	 	 	 	 	 
	6-1162-CHL-217
	 	Rescheduled Flight Test Aircraft	 	SA-32
	 
	 	 	 	 	 	 
	6-1162-NIW-606R1
	 	***	 	SA-36
	 
	 	 	 	 	 	 
	6-1162-NIW-640
	 	Early Delivery of Two April 2004	 	SA-35
	 
	 	Aircraft	 	 	 	 
	 
	 	 	 	 	 	 
	6-1162-NIW-889
	 	Warranty - Exterior Color Schemes	 	SA-39
	 
	 	and Markings for YA143 and on	 	 	 	 

					
	 	 	 	 	 
	P.A. No. 1810
	 	iv	 	 
	K/SWA
	 	 	 	SA-46

 

 

	 	 	 	 	 	 	 
	6-1162-NIW-1142
	 	***	 	SA-43
	 
	 	 	 	 	 	 
	6-1162-NIW-1369
	 	***	 	SA-46

					
	 	 	 	 	 
	P.A. No. 1810
	 	v	 	 
	K/SWA
	 	 	 	SA-46

 

 

Table 1 to

Purchase Agreement No. 1810

Aircraft Information Table

	 	 	 	 	 	 	 	 	 
	 	 	Base Aircraft	 	 	 	 
	 	 	Price	 	 	Special Features	 
	 
	 	 	 	 	 	 	 	 
	Block A, B, C, D & E Aircraft
	 	 	*	**	 	 	*	**
	Block F & G Aircraft
	 	 	*	**	 	 	*	**
	Block H Aircraft
	 	 	*	**	 	 	*	**
	Block I Aircraft
	 	 	*	**	 	 	*	**
	Block J Aircraft
	 	 	*	**	 	 	*	**
	Block K Aircraft
	 	 	*	**	 	 	*	**
	Block K-W Aircraft
	 	 	*	**	 	 	*	**
	Block L Aircraft
	 	 	*	**	 	 	*	**
	Block T Aircraft
	 	 	*	**	 	 	*	**
	Block T-W Aircraft
	 	 	*	**	 	 	*	**
	 
	 	 	 	 	 	 	 	 
	Block K-W Aircraft: Block K airplanes with production winglets installation
	 
	 	 	 	 	 	 	 	 
	Block T-W Aircraft: Block T airplanes with production winglets installation

					
	 	 	 	 	 
	SWA
	 	Page 1
	 	SA-46

 

 

Table 1 to

Purchase Agreement No. 1810

Aircraft Information Table

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Escalation Estimate
	Delivery	 	Number of	 	Aircraft	 	Adv Payment Base
	Date	 	Aircraft	 	Block	 	Price Per A/P
	Dec-2000
	 	 	2	 	 	 	E	 	 	 	*	**
	Jan-2001
	 	 	1	 	 	 	E	 	 	 	*	**
	Feb-2001
	 	 	1	 	 	 	E	 	 	 	*	**
	Mar-2001
	 	 	2	 	 	 	E	 	 	 	*	**
	Jun-2001
	 	 	3	 	 	 	E	 	 	 	*	**
	Sep-2001
	 	 	3	 	 	 	E	 	 	 	*	**
	Oct-1998
	 	 	1	 	 	 	F	 	 	 	*	**
	Nov-1998
	 	 	2	 	 	 	F	 	 	 	*	**
	Dec-1998
	 	 	2	 	 	 	F	 	 	 	*	**
	Mar-1999
	 	 	2	 	 	 	G	 	 	 	*	**
	Jun-1999
	 	 	2	 	 	 	H	 	 	 	*	**
	Jul-1999
	 	 	1	 	 	 	H	 	 	 	*	**
	Aug-1999
	 	 	1	 	 	 	H	 	 	 	*	**
	Sep-1999
	 	 	2	 	 	 	H	 	 	 	*	**
	Oct-1999
	 	 	1	 	 	 	H	 	 	 	*	**
	Mar-2000
	 	 	1	 	 	 	H	 	 	 	*	**
	Apr-2000
	 	 	2	 	 	 	H	 	 	 	*	**
	Sep-2000
	 	 	1	 	 	 	H	 	 	 	*	**
	Oct-2000
	 	 	2	 	 	 	H	 	 	 	*	**
	Mar-2001
	 	 	2	 	 	 	H	 	 	 	*	**
	Apr-2001
	 	 	1	 	 	 	H	 	 	 	*	**
	Oct-2001
	 	 	3	 	 	 	H	 	 	 	*	**
	Nov-2001
	 	 	2	 	 	 	I	 	 	 	*	**
	Dec-2001
	 	 	1	 	 	 	I	 	 	 	*	**
	Jan-2002
	 	 	1	 	 	 	I	 	 	 	*	**
	Mar-2002
	 	 	4	 	 	 	I	 	 	 	*	**
	Apr-2002
	 	 	2	 	 	 	I	 	 	 	*	**
	Dec-2002
	 	 	2	 	 	 	I	 	 	 	*	**
	May-2003
	 	 	1	 	 	 	I	 	 	 	*	**
	Jun-2003
	 	 	2	 	 	 	I	 	 	 	*	**
	Jul-2003
	 	 	1	 	 	 	I	 	 	 	*	**
	Aug-2003
	 	 	1	 	 	 	I	 	 	 	*	**
	Sep-2003
	 	 	3	 	 	 	I	 	 	 	*	**
	Nov-2002
	 	 	1	 	 	 	J	 	 	 	*	**
	Dec-2002
	 	 	1	 	 	 	J	 	 	 	*	**
	Nov-2003
	 	 	2	 	 	 	J	 	 	 	*	**
	Dec-2003
	 	 	2	 	 	 	J	 	 	 	*	**
	Mar-2004
	 	 	1	 	 	 	J	 	 	 	*	**
	Mar-2004
	 	 	1	 	 	 	K	 	 	 	*	**
	Apr-2004
	 	 	3	 	 	 	K	 	 	 	*	**
	May-2004
	 	 	1	 	 	 	K	 	 	 	*	**

					
	 	 	 	 	 
	SWA
	 	Page 2
	 	SA-46

 

 

Table 1 to

Purchase Agreement No. 1810

Aircraft Information Table

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Escalation Estimate
	Delivery	 	Number of	 	Aircraft	 	Adv Payment Base
	Date	 	Aircraft	 	Block	 	Price Per A/P
	Jun-2004
	 	 	2	 	 	 	K	 	 	 	*	**
	Jul-2004
	 	 	2	 	 	 	K	 	 	 	*	**
	Sep-2004
	 	 	1	 	 	 	K-W	 	 	 	*	**
	Oct-2004
	 	 	4	 	 	 	K-W	 	 	 	*	**
	Oct-1999
	 	 	1	 	 	 	L	 	 	 	*	**
	Nov-1999
	 	 	2	 	 	 	L	 	 	 	*	**
	Dec-1999
	 	 	1	 	 	 	L	 	 	 	*	**
	Jun-2000
	 	 	3	 	 	 	L	 	 	 	*	**
	Jul-2000
	 	 	3	 	 	 	L	 	 	 	*	**
	Sep-2000
	 	 	1	 	 	 	L	 	 	 	*	**
	Oct-2000
	 	 	1	 	 	 	L	 	 	 	*	**
	Nov-2000
	 	 	4	 	 	 	L	 	 	 	*	**
	Dec-2000
	 	 	1	 	 	 	L	 	 	 	*	**
	Jan-2001
	 	 	1	 	 	 	L	 	 	 	*	**
	Feb-2001
	 	 	1	 	 	 	L	 	 	 	*	**
	Jul-2001
	 	 	1	 	 	 	L	 	 	 	*	**
	Sep-2001
	 	 	1	 	 	 	L	 	 	 	*	**
	Oct-2001
	 	 	1	 	 	 	L	 	 	 	*	**
	Mar-2003
	 	 	2	 	 	 	L	 	 	 	*	**
	Jul-2003
	 	 	1	 	 	 	L	 	 	 	*	**
	Aug-2003
	 	 	2	 	 	 	L	 	 	 	*	**
	Nov-2001
	 	 	1	 	 	 	T	 	 	 	*	**
	Feb-2002
	 	 	1	 	 	 	T	 	 	 	*	**
	Jan-2004
	 	 	2	 	 	 	T	 	 	 	*	**
	Feb-2004
	 	 	1	 	 	 	T	 	 	 	*	**
	Apr-2004
	 	 	3	 	 	 	T	 	 	 	*	**
	May-2004
	 	 	1	 	 	 	T	 	 	 	*	**
	Jun-2004
	 	 	6	 	 	 	T	 	 	 	*	**
	Jul-2004
	 	 	2	 	 	 	T	 	 	 	*	**
	Aug-2004
	 	 	6	 	 	 	T-W	 	 	 	*	**
	Sep-2004
	 	 	4	 	 	 	T-W	 	 	 	*	**
	Oct-2004
	 	 	0	 	 	 	T-W	 	 	 	*	**
	Nov-2004
	 	 	3	 	 	 	T-W	 	 	 	*	**
	Dec-2004
	 	 	3	 	 	 	T-W	 	 	 	*	**
	Jan-2005
	 	 	5	 	 	 	T-W	 	 	 	*	**
	Feb-2005
	 	 	3	 	 	 	T-W	 	 	 	*	**
	Mar-2005
	 	 	4	 	 	 	T-W	 	 	 	*	**
	Apr-2005
	 	 	4	 	 	 	T-W	 	 	 	*	**
	May-2005
	 	 	2	 	 	 	T-W	 	 	 	*	**
	Jun-2005
	 	 	4	 	 	 	T-W	 	 	 	*	**
	Jul-2005
	 	 	2	 	 	 	T-W	 	 	 	*	**
	Aug-2005
	 	 	2	 	 	 	T-W	 	 	 	*	**
	Sep-2005
	 	 	3	 	 	 	T-W	 	 	 	*	**
	Oct-2005
	 	 	2	 	 	 	T-W	 	 	 	*	**

					
	 	 	 	 	 
	SWA
	 	Page 3
	 	SA-46

 

 

Table 1 to

Purchase Agreement No. 1810

Aircraft Information Table

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Escalation Estimate
	Delivery	 	Number of	 	Aircraft	 	Adv Payment Base
	Date	 	Aircraft	 	Block	 	Price Per A/P
	Nov-2005
	 	 	2	 	 	 	T-W	 	 	 	*	**
	Dec-2005
	 	 	1	 	 	 	T-W	 	 	 	*	**
	Jan-2006
	 	 	1	 	 	 	T-W	 	 	 	*	**
	Feb-2006
	 	 	4	 	 	 	T-W	 	 	 	*	**
	Mar-2006
	 	 	3	 	 	 	T-W	 	 	 	*	**
	Apr-2006
	 	 	2	 	 	 	T-W	 	 	 	*	**
	May-2006
	 	 	5	 	 	 	T-W	 	 	 	*	**
	Jun-2006
	 	 	5	 	 	 	T-W	 	 	 	*	**
	Jul-2006
	 	 	3	 	 	 	T-W	 	 	 	*	**
	Aug-2006
	 	 	3	 	 	 	T-W	 	 	 	*	**
	Sep-2006
	 	 	3	 	 	 	T-W	 	 	 	*	**
	Oct-2006
	 	 	1	 	 	 	T-W	 	 	 	*	**
	Nov-2006
	 	 	2	 	 	 	T-W	 	 	 	*	**
	Dec-2006
	 	 	2	 	 	 	T-W	 	 	 	*	**
	Jan-2007
	 	 	2	 	 	 	T-W	 	 	 	*	**
	Feb-2007
	 	 	3	 	 	 	T-W	 	 	 	*	**
	Mar-2007
	 	 	2	 	 	 	T-W	 	 	 	*	**
	Apr-2007
	 	 	3	 	 	 	T-W	 	 	 	*	**
	May-2007
	 	 	3	 	 	 	T-W	 	 	 	*	**
	Jun-2007
	 	 	2	 	 	 	T-W	 	 	 	*	**
	Jul-2007
	 	 	2	 	 	 	T-W	 	 	 	*	**
	Aug-2007
	 	 	2	 	 	 	T-W	 	 	 	*	**
	Sep-2007
	 	 	2	 	 	 	T-W	 	 	 	*	**
	Oct-2007
	 	 	2	 	 	 	T-W	 	 	 	*	**
	Nov-2007
	 	 	2	 	 	 	T-W	 	 	 	*	**
	Dec-2007
	 	 	2	 	 	 	T-W	 	 	 	*	**
	Jan-2008
	 	 	1	 	 	 	T-W	 	 	 	*	**
	Feb-2008
	 	 	1	 	 	 	T-W	 	 	 	*	**
	Mar-2008
	 	 	1	 	 	 	T-W	 	 	 	*	**
	Apr-2008
	 	 	1	 	 	 	T-W	 	 	 	*	**
	May-2008
	 	 	1	 	 	 	T-W	 	 	 	*	**
	Jun-2008
	 	 	1	 	 	 	T-W	 	 	 	*	**

					
	 	 	 	 	 
	SWA
	 	Page 4
	 	SA-46

 

 

Table 2 to Purchase Agreement No. 1810

(Letter Agreement No. 6-1162-RLL-933R19)

Option Aircraft Information Table

Price Description of Option Aircraft:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Base Aircraft	 	Special	 	Aircraft Basic	 	Base Year
	 	 	Price	 	Features	 	Price	 	Dollars
	Block U Option Aircraft
	 	 	*	**	 	 	*	**	 	 	*	**	 	July 1999
	(without Winglets)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Block U-W Option Aircraft
	 	 	*	**	 	 	*	**	 	 	*	**	 	July 1999
	(with Winglets)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Delivery of Rollover Option Aircraft:

	 	 	 	 	 
	 	 	Number of	 	Option
	 	 	Option	 	Aircraft
	Year of Delivery	 	Aircraft	 	Block
	2007
	 	Twenty (20)	 	Q
	2008
	 	Twenty (20)	 	R
	2009
	 	Six (6)	 	S
	 
	 	One Hundred	 	 
	2009-2012
	 	Seventy-One (171)	 	V

	 	 	 	 	 
	Remaining Option Aircraft:
	 	 	32	 

SA-46

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Adv Payment	 	 
	Aircraft	 	Number of	 	Option	 	Base	 	 
	Delivery	 	Option	 	Aircraft	 	Price Per	 	 
	Mo. & Yr.	 	Aircraft	 	Block	 	Option Aircraft	 	Option Exercise
	Jun-2007

	 	 	1	 	 	U-W
	 	***
	 	February 1, 2006
	Jul-2007

	 	 	1	 	 	U-W
	 	***
	 	March 1, 2006
	Aug-2007

	 	 	1	 	 	U-W
	 	***
	 	April 1, 2006
	Sep-2007

	 	 	1	 	 	U-W
	 	***
	 	May 1, 2006
	Oct-2007

	 	 	1	 	 	U-W
	 	***
	 	June 1, 2006
	Nov-2007

	 	 	1	 	 	U-W
	 	***
	 	July 1, 2006
	Dec-2007

	 	 	1	 	 	U-W
	 	***
	 	August 1, 2006
	Jan-2008

	 	 	2	 	 	U-W
	 	***
	 	September 1, 2006
	Feb-2008

	 	 	3	 	 	U-W
	 	***
	 	October 1, 2006
	Mar-2008

	 	 	2	 	 	U-W
	 	***
	 	November 1, 2006
	Apr-2008

	 	 	2	 	 	U-W
	 	***
	 	December 1, 2006
	May-2008

	 	 	2	 	 	U-W
	 	***
	 	January 1, 2007
	Jun-2008

	 	 	2	 	 	U-W
	 	***
	 	February 1, 2007
	Jul-2008

	 	 	2	 	 	U-W
	 	***
	 	March 1, 2007
	Aug-2008

	 	 	2	 	 	U-W
	 	***
	 	April 1, 2007
	Sep-2008

	 	 	2	 	 	U-W
	 	***
	 	May 1, 2007
	Oct-2008

	 	 	2	 	 	U-W
	 	***
	 	June 1, 2007
	Nov-2008

	 	 	2	 	 	U-W
	 	***
	 	July 1, 2007
	Dec-2008

	 	 	2	 	 	U-W
	 	***
	 	August 1, 2007

SA-46

 

 

Southwest Airlines Co.

Attachment A to 6-1162-JMG-669R6

***

			
	 	 	 
	P.A. No. 1810
K/SWA
	 	SA-46

 

	 	 	 
	 

	 	The Boeing Company
	 

	 	3855 Lakewood Blvd
	 

	 	Long Beach, CA 90846-0001
	 

	 	(562) 593-5511

6-1162-NIW-1369

Southwest Airlines Co.

P.O. Box 36611 — Love Field

Dallas, Texas 75235

Subject: ***

This Letter Agreement amends Purchase Agreement No. 1810 dated as of January 19, 1994 (the
Agreement) between The Boeing Company (Boeing) and Southwest Airlines Co. (Buyer) relating to Model
737-7H4 aircraft.

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

1. ***

In consideration of Buyer’s continued exercise of Block U Option Aircraft into firm aircraft, ***

     ***

2. Confidential Treatment

Buyer understands that certain commercial and financial information contained in this Agreement is
considered by Boeing as confidential. Buyer agrees that it will treat this Letter and the
information contained herein as confidential and will not, without the prior written consent of
Boeing, disclose this Letter Agreement or any information contained herein to any other person or
entity, except as may be required by applicable law or government regulators.

	 	 	 	 	 
	Very truly yours,  
	 
	 	 	 	 
	THE BOEING COMPANY
	 
	 	 	 	 
	By

	 	/s/ Nobuko Wiles	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Its

	 	Attorney-In-Fact	 	 
	 

	 	 	 	 

			
	 	 	 
	P.A. No. 1810
	 	SA-46

 

 

Southwest Airlines Co.

6-1162-NIW-1369

ACCEPTED AND AGREED TO this

	 	 	 	 	 
	Date:

	 	January 27, 2006	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	SOUTHWEST AIRLINES CO.
	 
	 	 	 	 
	By

	 	/s/ Laura Wright	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Its

	 	SVP Finance and CFO	 	 
	 

	 	 	 	 

			
	 	 	 
	P.A. No. 1810
	 	SA-46

 

 

Supplemental Agreement No. 47

to

Purchase Agreement No. 1810

between

THE BOEING COMPANY

and

SOUTHWEST AIRLINES CO.

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

     THIS SUPPLEMENTAL AGREEMENT, entered into as of April 20, 2006, by and between THE BOEING
COMPANY, a Delaware corporation with principal offices in Seattle, Washington, (Boeing) and
SOUTHWEST AIRLINES CO., a Texas corporation with principal offices in Dallas, Texas (Buyer);

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

     WHEREAS, Buyer has agreed to exercise the following Option Aircraft:

     Year 2007 — June, July, August, September, October, November and December

     Year 2008 — January (2), February (3), March (2), April (2), May (2), June (2), July (2),
August (2), September (2), October (2), November (2) and December

     If there are more than one Aircraft in the Contract Delivery Month, quantities are indicated
in parenthesis above and;

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

					
	 	 	 	 	 
	P.A. No. 1810

K/SWA
	 	SA-47-1
	 	 

 

 

          WHEREAS, Buyer has agreed to convert Rollover Option Aircraft to firm Aircraft scheduled to
deliver as follows:

     Year 2009 — January, February (2), March (2), April (2), May (2), June (2), July (2), August,
September, October, November and December

     Year 2010 — January, February, March, April, May, June, July, August, September and October

     Year 2011— January, February, March, April, May, June, July, August, September and October

     Year 2012— January, February, March, April, May, June, July, August, September and October

     If there are more than one Aircraft in the Contract Delivery Month, quantities are indicated
in parenthesis above and;

          WHEREAS, Buyer has agreed to convert Rollover Option Aircraft to Option Aircraft scheduled to
deliver as follows:

     Year 2008 — January, March, July (2) and August

     Year 2009 — January (3), March (3), April (2), May, June, July (2), August (2), September,
October, November and December

     Year 2010 — January (3), February (3), March (2), April (3), May (3), June (3), July (2),
August (2), September (2), October (3), November (3) and December (3)

     Year 2011 — January (3), February (3), March (2), April (3), May (3), June (3), July (2),
August (2), September (2), October (2), November (3) and December (2)

     Year 2012 — January (3), February (3), March (2), April (3), May (3), June (3), July (2),
August (2), September (2), October (2), November (3) and December (2)

     If there are more than one Aircraft in the Contract Delivery Month, quantities are indicated
in parenthesis above and;

     WHEREAS, Buyer and Boeing agreed to replace the term “Rollover Option” with “Purchase Right”
Aircraft and;

     WHEREAS, ***

					
	 	 	 	 	 
	P.A. No. 1810

K/SWA
	 	SA-47-2
	 	 

 

 

     WHEREAS, Buyer and Boeing agreed to update Article 3, entitled “Price of Aircraft” to
incorporate pricing information of newly added Airplane Blocks and;

     WHEREAS, ***

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

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

2. Article 3, entitled “Price of Aircraft”, paragraph 3.2 entitled “Aircraft Basic Price,” and
paragraph 3.3 entitled “Aircraft Price” are revised by adding references to Block T-W Aircraft,
Block T-W-1 Aircraft, Block T-W-1a Aircraft, Block T-W-2 Aircraft and Block T-W-2a Aircraft. Such
new pages 3-1 and 3-2 are attached hereto and incorporated into the Agreement by this reference.

3. Table 1 is deleted in its entirety and replaced by a new Table 1 which is attached hereto and is
incorporated into the Agreement by this reference.

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

NOTE — Buyer had fifty-five (55) ‘banked’ Rollover Option Aircraft as a result of the option
exercises covered by Supplemental Agreement No. 21, 23, 24, 26, 27, 28, 29, 30, 31, 32, 33, 34,
35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45 and 46. In accordance with the terms of Letter
Agreement No. 6-1162-RLL-933R20, Buyer has converted such ‘banked’ Rollover Option Aircraft to
Firm Aircraft / Option Aircraft as part of this Supplemental Agreement.

5. ***

6. Letter Agreement No. 6-1162-RLL-933R19 entitled “Option Aircraft” is deleted in its entirety and
replaced with Letter Agreement No. 6-1162-RLL-933R20 entitled “Option Aircraft” attached hereto and
is hereby incorporated into the Agreement by this reference.

					
	 	 	 	 	 
	P.A. No. 1810

K/SWA
	 	SA-47-3
	 	 

 

 

6. All references in the Letter Agreements associated with Purchase Agreement No. 1810 shall be
deemed to refer to the purchase by Buyer of three hundred seventy (370) Model 737-7H4 Aircraft, one
hundred sixteen (116) Model 737-7H4 Option Aircraft and fifty-four (54) Model 737-7H4 Purchase
Right Aircraft, to the extent such reference is not specifically addressed herein.

7. The Advance Payments for Firm Aircraft due upon signing assuming execution of this Supplemental
Agreement on or before April 28, 2006 are:

***for 79 Firm Aircraft

     The Deposit for Option Aircraft due upon signing assuming execution of this Supplemental
Agreement on or before April 28, 2006 is:

*** for 115 Option Aircraft ***

Buyer will pay the *** directly to Boeing on or before Friday, April 28, 2006.

8. As Boeing informed Buyer previously, the International Association of Machinists and Aerospace
Workers began a labor stoppage on September 2, 2005 and it concluded on September 29, 2005 (The
Strike). Due to the Strike impact, Boeing currently forecasts one December 2007 Aircraft bearing
Manufactures Serial Number 36615 (December 2007 Aircraft) to be tendered for delivery in January
2008. Boeing will continue to evaluate the possibility of delivering December 2007 Aircraft in its
Contract Delivery Month. If Boeing delays delivery of December 2007 Aircraft, such delay is
considered to be Excusable Delay in accordance with Article 6 of the Agreement. Further,
the Advance Payment schedule for December 2007 Aircraft has been adjusted to reflect the current
forecast delivery month of January 2008.

					
	 	 	 	 	 
	P.A. No. 1810

K/SWA
	 	SA-47-4
	 	 

 

 

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

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

	 	 	 	 	 	 	 	 	 
	THE BOEING COMPANY	 	 	 	SOUTHWEST AIRLINES CO.
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Nobuku Wiles
	 	 	 	By:
	 	Laura Wright
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Its:

	 	Attorney-In-Fact
	 	 	 	Its:
	 	SVP Finance & CFO
	 

	 	 
	 	 	 	 	 	 

					
	 	 	 	 	 
	P.A. No. 1810

K/SWA
	 	SA-47-5
	 	 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Page	 	 	SA	 
	 	 	 	 	Number	 	 	Number	 
	ARTICLES	 	 
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	1.	 	Subject Matter of Sale
	 	 	1-1	 	 	SA-13
	 	 	 
	 	 	 	 	 	 	 	 
	2.	 	Delivery, Title and Risk of Loss
	 	 	2-1	 	 	SA-28
	 	 	 
	 	 	 	 	 	 	 	 
	3.	 	Price of Aircraft
	 	 	3-1	 	 	SA-47
	 	 	 
	 	 	 	 	 	 	 	 
	4.	 	Taxes
	 	 	4-1	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	5.	 	Payment
	 	 	5-1	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	6.	 	Excusable Delay
	 	 	6-1	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	7.	 	Changes to the Detail Specification
	 	 	7-1	 	 	SA-1
	 	 	 
	 	 	 	 	 	 	 	 
	8.	 	Federal Aviation Requirements and
Certificates and Export License
	 	 	8-1	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	9.	 	Representatives, Inspection,
Flights and Test Data
	 	 	9-1	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	10.	 	Assignment, Resale or Lease
	 	 	10-1	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	11.	 	Termination for Certain Events
	 	 	11-1	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	12.	 	Product Assurance; Disclaimer and
Release; Exclusion of Liabilities;
Customer Support; Indemnification
and Insurance
	 	 	12-1	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	13.	 	Buyer Furnished Equipment and
Spare Parts
	 	 	13-1	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	14.	 	Contractual Notices and Requests
	 	 	14-1	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	15.	 	Miscellaneous
	 	 	15-1	 	 	 	 	 

					
	 	 	 	 	 
	P.A. No. 1810
	 	i
	 	 

SA-47

 

 

TABLE OF CONTENTS CON’T

	 	 	 	 	 	 	 
	 	 	 	 	SA	 
	 	 	 	 	Number	 
	TABLE	 	 
	 	 	 	 
	 	 	 
	 	 	 	 
	1.	 	Aircraft Information Table
	 	SA-47
	 	 	 
	 	 	 	 
	2.	 	Option Aircraft Information Table
	 	SA-47
	 	 	 
	 	 	 	 
	EXHIBITS	 	 
	 	 	 	 
	 	 	 
	 	 	 	 
	A	 	Aircraft Configuration
	 	SA-47
	 	 	 
	 	 	 	 
	B	 	Product Assurance Document
	 	SA-1
	 	 	 
	 	 	 	 
	C	 	Customer Support Document
	 	 	 	 
	 	 	 
	 	 	 	 
	D	 	Price Adjustments Due to
Economic Fluctuations — Aircraft
	 	 	 	 
	 	 	 
	 	 	 	 
	E	 	Buyer Furnished Equipment
Provisions Document
	 	 	 	 
	 	 	 
	 	 	 	 
	F	 	Defined Terms Document
	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	 
	 	 	 	 
	LETTER AGREEMENTS
	 	 	 
	 	 	 	 
	1810-1	 	Waiver of Aircraft Demonstration Flight	 	 	 	 

					
	 	 	 	 	 
	P.A. No. 1810
	 	ii
	 	 

SA-47

 

 

TABLE OF CONTENTS CON’T

	 	 	 	 	 	 	 
	 	 	 	 	SA	 
	 	 	 	 	Number	 
	RESTRICTED LETTER AGREEMENTS
	 	 	 
	 	 	 	 
	6-1162-RLL-932R2	 	Promotional Support
	 	SA-13
	 	 	 
	 	 	 	 
	6-1162-RLL-933R20	 	***
	 	SA-47
	 	 	 
	 	 	 	 
	6-1162-RLL-934R3	 	Disclosure of Confidential
Information
	 	SA-14
	 	 	 
	 	 	 	 
	6-1162-RLL-935R1	 	Performance Guarantees
	 	SA-1
	 	 	 
	 	 	 	 
	6-1162-NIW-890	 	***
	 	SA-39
	 	 	 
	 	 	 	 
	6-1162-RLL-936R4	 	Certain Contractual Matters
	 	SA-4
	 	 	 
	 	 	 	 
	6-1162-RLL-937	 	Alternate Advance Payment Schedule
	 	 	 	 
	 	 	 
	 	 	 	 
	6-1162-RLL-938	 	***
	 	 	 	 
	 	 	 
	 	 	 	 
	6-1162-RLL-939R1	 	Certification Flight Test Aircraft
	 	SA-1
	 	 	 
	 	 	 	 
	6-1162-RLL-940R1	 	Training Matters
	 	SA-1
	 	 	 
	 	 	 	 
	6-1162-RLL-941R2	 	Other Matters
	 	SA-13
	 	 	 
	 	 	 	 
	6-1162-RLL-942	 	Open Configuration Matters
	 	 	 	 
	 	 	 
	 	 	 	 
	6-1162-RLL-943R1	 	Substitution Rights
	 	SA-6
	 	 	 
	 	 	 	 
	6-1162-RLL-944	 	Airframe Maintenance Material Cost
Protection Program
	 	 	 	 
	 	 	 
	 	 	 	 
	6-1162-RLL-945	 	Comparison of 737-7H4 and 737-3H4
Block Fuel Burn
	 	 	 	 
	 	 	 
	 	 	 	 
	6-1162-RLL-1855R3	 	Additional Contractual Matters
	 	SA-4
	 	 	 
	 	 	 	 
	6-1162-RLL-1856	 	***
	 	SA-1
	 	 	 
	 	 	 	 
	6-1162-RLL-1857	 	Service Ready Validation Program
Field Test
	 	SA-1
	 	 	 
	 	 	 	 
	6-1162-RLL-1858R1	 	Escalation Matters
	 	SA-4

					
	 	 	 	 	 
	P.A. No. 1810
	 	iii
	 	 

SA-47

 

 

TABLE OF CONTENTS CON’T

	 	 	 	 	 	 	 
	 	 	 	 	SA	 
	 	 	 	 	Number	 
	RESTRICTED LETTER AGREEMENTS
	 	 	 
	 	 	 	 
	6-1162-RLL-2036	 	Amortization of Costs for
Customer Unique Changes
	 	SA-1
	 	 	 
	 	 	 	 
	6-1162-RLL-2037	 	Reconciliation of the Aircraft
Basic Price
	 	SA-1
	 	 	 
	 	 	 	 
	6-1162-RLL-2073	 	Maintenance Training Matters
	 	SA-1
	 	 	 
	 	 	 	 
	6-1162-KJJ-054R1	 	Business Matters
	 	 	 	 
	 	 	 
	 	 	 	 
	6-1162-KJJ-055R1	 	Structural Matters
	 	SA-25
	 	 	 
	 	 	 	 
	6-1162-KJJ-056	 	Noise and Emission Matters
	 	SA-13
	 	 	 
	 	 	 	 
	6-1162-KJJ-057	 	Product Development Matters
	 	SA-13
	 	 	 
	 	 	 	 
	6-1162-KJJ-058	 	Additional Substitution Rights
	 	SA-13
	 	 	 
	 	 	 	 
	6-1162-KJJ-150	 	Flight Control Computer & Mode
Control Panel Spares Matter
	 	SA-14
	 	 	 
	 	 	 	 
	6-1162-MSA-185R3	 	Delivery Change Contractual
Matters
	 	SA-21
	 	 	 
	 	 	 	 
	New Attachment A	 	SA-46
	 	 	 
	 	 	 	 
	6-1162-JMG-669R7	 	***
	 	SA-47
	 	 	 
	 	 	 	 
	6-1162-JMG-747R1	 	***
	 	SA-36
	 	 	 
	 	 	 	 
	6-1162-CHL-217	 	Rescheduled Flight Test Aircraft
	 	SA-32
	 	 	 
	 	 	 	 
	6-1162-NIW-606R1	 	*** 
	 	SA-36
	 	 	 
	 	 	 	 
	6-1162-NIW-640	 	Early Delivery of Two April 2004
Aircraft
	 	SA-35
	 	 	 
	 	 	 	 
	6-1162-NIW-889	 	Warranty — Exterior Color Schemes
and Markings for YA143 and on
	 	SA-39
	 	 	 
	 	 	 	 
	6-1162-NIW-1142	 	***
	 	SA-43
	 	 	 
	 	 	 	 
	6-1162-NIW-1369	 	*** 
	 	SA-46

					
	 	 	 	 	 
	P.A. No. 1810
	 	iv
	 	 

SA-47

 

 

Table 1 to

Purchase Agreement No. 1810

Aircraft Information Table

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Aircraft Basic	 	Base Year
	 	 	Base Aircraft Price	 	Special Features	 	Price	 	Dollars
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Block A, B, C, D & E Aircraft
	 	 	*	**	 	 	*	**	 	 	*	**	 	July 1992
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Block F & G Aircraft
	 	 	*	**	 	 	*	**	 	 	*	**	 	July 1992
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Block H Aircraft
	 	 	*	**	 	 	*	**	 	 	*	**	 	July 1992
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Block I Aircraft
	 	 	*	**	 	 	*	**	 	 	*	**	 	July 1992
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Block J Aircraft
	 	 	*	**	 	 	*	**	 	 	*	**	 	July 1992
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Block K Aircraft
	 	 	*	**	 	 	*	**	 	 	*	**	 	July 1992
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Block K-W Aircraft
	 	 	*	**	 	 	*	**	 	 	*	**	 	July 1992
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Block L Aircraft
	 	 	*	**	 	 	*	**	 	 	*	**	 	July 1992
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Block T Aircraft
	 	 	*	**	 	 	*	**	 	 	*	**	 	July 1999
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Block T-W Aircraft
	 	 	*	**	 	 	*	**	 	 	*	**	 	July 1999
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Block T-W-1 / T-W-1a Aircraft
	 	 	*	**	 	 	*	**	 	 	*	**	 	July 1999
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Block T-W-2 / T-W-2a Aircraft
	 	 	*	**	 	 	*	**	 	 	*	**	 	July 1999
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Block K-W Aircraft: Block K airplanes with production winglets installation

Block T-W Aircraft: Block T airplanes with production winglets installation

Block T-W-1 / T-W-1a Aircraft: Firm Aircraft contracted to deliver from May 1, 2006 through June 2008 at the signing
of SA-47  — (T-W-1a Aircraft — Advance Payment Schedule per LA 6-1162-JGM-669)

Block T-W-2 / T-W-2a Aircraft: U-W-1 Option Aircraft which becomes Firm Aircraft after signing of SA-47 and

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

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

 

 

Table 1 to

Purchase Agreement No. 1810

Aircraft Information Table

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Escalation Estimate	 	 
	Delivery	 	Number of	 	Aircraft	 	Adv Payment Base	 	 
	Date	 	Aircraft	 	Block	 	Price Per A/P	 	Serial Number
	Dec-2000

	 	 	2	 	 	E
	 	***	 	 
	Jan-2001

	 	 	1	 	 	E
	 	***	 	 
	Feb-2001

	 	 	1	 	 	E
	 	***	 	 
	Mar-2001

	 	 	2	 	 	E
	 	***	 	 
	Jun-2001

	 	 	3	 	 	E
	 	***	 	 
	Sep-2001

	 	 	3	 	 	E
	 	***	 	 
	Oct-1998

	 	 	1	 	 	F
	 	***	 	 
	Nov-1998

	 	 	2	 	 	F
	 	***	 	 
	Dec-1998

	 	 	2	 	 	F
	 	***	 	 
	Mar-1999

	 	 	2	 	 	G
	 	***	 	 
	Jun-1999

	 	 	2	 	 	H
	 	***	 	 
	Jul-1999

	 	 	1	 	 	H
	 	***	 	 
	Aug-1999

	 	 	1	 	 	H
	 	***	 	 
	Sep-1999

	 	 	2	 	 	H
	 	***	 	 
	Oct-1999

	 	 	1	 	 	H
	 	***	 	 
	Mar-2000

	 	 	1	 	 	H
	 	***	 	 
	Apr-2000

	 	 	2	 	 	H
	 	***	 	 
	Sep-2000

	 	 	1	 	 	H
	 	***	 	 
	Oct-2000

	 	 	2	 	 	H
	 	***	 	 
	Mar-2001

	 	 	2	 	 	H
	 	***	 	 
	Apr-2001

	 	 	1	 	 	H
	 	***	 	 
	Oct-2001

	 	 	3	 	 	H
	 	***	 	 
	Nov-2001

	 	 	2	 	 	I
	 	***	 	 
	Dec-2001

	 	 	1	 	 	I
	 	***	 	 
	Jan-2002

	 	 	1	 	 	I
	 	***	 	 
	Mar-2002

	 	 	4	 	 	I
	 	***	 	 
	Apr-2002

	 	 	2	 	 	I
	 	***	 	 
	Dec-2002

	 	 	2	 	 	I
	 	***	 	 
	May-2003

	 	 	1	 	 	I
	 	***	 	 
	Jun-2003

	 	 	2	 	 	I
	 	***	 	 
	Jul-2003

	 	 	1	 	 	I
	 	***	 	 
	Aug-2003

	 	 	1	 	 	I
	 	***	 	 
	Sep-2003

	 	 	3	 	 	I
	 	***	 	 
	Nov-2002

	 	 	1	 	 	J
	 	***	 	 
	Dec-2002

	 	 	1	 	 	J
	 	***	 	 
	Nov-2003

	 	 	2	 	 	J
	 	***	 	 
	Dec-2003

	 	 	2	 	 	J
	 	***	 	 
	Mar-2004

	 	 	1	 	 	J
	 	***	 	 
	Mar-2004

	 	 	1	 	 	K
	 	***	 	 
	Apr-2004

	 	 	3	 	 	K
	 	***	 	 

 

 

Table 1 to

Purchase Agreement No. 1810

Aircraft Information Table

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Escalation Estimate	 	 
	Delivery	 	Number of	 	Aircraft	 	Adv Payment Base	 	 
	Date	 	Aircraft	 	Block	 	Price Per A/P	 	Serial Number
	May-2004

	 	 	1	 	 	K
	 	***	 	 
	Jun-2004

	 	 	2	 	 	K
	 	***	 	 
	Jul-2004

	 	 	2	 	 	K
	 	***	 	 
	Sep-2004

	 	 	1	 	 	K-W
	 	***	 	 
	Oct-2004

	 	 	4	 	 	K-W
	 	***	 	 
	Oct-1999

	 	 	1	 	 	L
	 	***	 	 
	Nov-1999

	 	 	2	 	 	L
	 	***	 	 
	Dec-1999

	 	 	1	 	 	L
	 	***	 	 
	Jun-2000

	 	 	3	 	 	L
	 	***	 	 
	Jul-2000

	 	 	3	 	 	L
	 	***	 	 
	Sep-2000

	 	 	1	 	 	L
	 	***	 	 
	Oct-2000

	 	 	1	 	 	L
	 	***	 	 
	Nov-2000

	 	 	4	 	 	L
	 	***	 	 
	Dec-2000

	 	 	1	 	 	L
	 	***	 	 
	Jan-2001

	 	 	1	 	 	L
	 	***	 	 
	Feb-2001

	 	 	1	 	 	L
	 	***	 	 
	Jul-2001

	 	 	1	 	 	L
	 	***	 	 
	Sep-2001

	 	 	1	 	 	L
	 	***	 	 
	Oct-2001

	 	 	1	 	 	L
	 	***	 	 
	Mar-2003

	 	 	2	 	 	L
	 	***	 	 
	Jul-2003

	 	 	1	 	 	L
	 	***	 	 
	Aug-2003

	 	 	2	 	 	L
	 	***	 	 
	Nov-2001

	 	 	1	 	 	T
	 	***	 	 
	Feb-2002

	 	 	1	 	 	T
	 	***	 	 
	Jan-2004

	 	 	2	 	 	T
	 	***	 	 
	Feb-2004

	 	 	1	 	 	T
	 	***	 	 
	Apr-2004

	 	 	3	 	 	T
	 	***	 	 
	May-2004

	 	 	1	 	 	T
	 	***	 	 
	Jun-2004

	 	 	6	 	 	T
	 	***	 	 
	Jul-2004

	 	 	2	 	 	T
	 	***	 	 
	Aug-2004

	 	 	6	 	 	T-W
	 	***	 	 
	Sep-2004

	 	 	4	 	 	T-W
	 	***	 	 
	Oct-2004

	 	 	0	 	 	T-W
	 	***	 	 
	Nov-2004

	 	 	3	 	 	T-W
	 	***	 	 
	Dec-2004

	 	 	3	 	 	T-W
	 	***	 	 
	Jan-2005

	 	 	5	 	 	T-W
	 	***	 	 
	Feb-2005

	 	 	3	 	 	T-W
	 	***	 	 
	Mar-2005

	 	 	4	 	 	T-W
	 	***	 	 
	Apr-2005

	 	 	4	 	 	T-W
	 	***	 	 
	May-2005

	 	 	2	 	 	T-W
	 	***	 	 
	Jun-2005

	 	 	4	 	 	T-W
	 	***	 	 
	Jul-2005

	 	 	2	 	 	T-W
	 	***	 	 
	Aug-2005

	 	 	2	 	 	T-W
	 	***	 	 
	Sep-2005

	 	 	3	 	 	T-W
	 	***	 	 

 

 

Table 1 to

Purchase Agreement No. 1810

Aircraft Information Table

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Escalation Estimate	 	 
	Delivery	 	Number of	 	Aircraft	 	Adv Payment Base	 	 
	Date	 	Aircraft	 	Block	 	Price Per A/P	 	Serial Number
	Oct-2005

	 	 	2	 	 	T-W
	 	***	 	 
	Nov-2005

	 	 	2	 	 	T-W
	 	***	 	 
	Dec-2005

	 	 	1	 	 	T-W
	 	***	 	 
	Jan-2006

	 	 	1	 	 	T-W
	 	***	 	 
	Feb-2006

	 	 	4	 	 	T-W
	 	***	 	 
	Mar-2006

	 	 	3	 	 	T-W
	 	***	 	 
	Apr-2006

	 	 	2	 	 	T-W
	 	***	 	 
	May-2006

	 	 	5	 	 	T-W-1
	 	***	 	 
	Jun-2006

	 	 	5	 	 	T-W-1
	 	***	 	 
	Jul-2006

	 	 	3	 	 	T-W-1
	 	***	 	 
	Aug-2006

	 	 	3	 	 	T-W-1
	 	***	 	 
	Sep-2006

	 	 	3	 	 	T-W-1
	 	***	 	 
	Oct-2006

	 	 	1	 	 	T-W-1
	 	***	 	 
	Nov-2006

	 	 	2	 	 	T-W-1
	 	***	 	 
	Dec-2006

	 	 	2	 	 	T-W-1
	 	***	 	 
	Jan-2007

	 	 	2	 	 	T-W-1
	 	***	 	 
	Feb-2007

	 	 	3	 	 	T-W-1
	 	***	 	 
	Mar-2007

	 	 	2	 	 	T-W-1
	 	***	 	 
	Apr-2007

	 	 	3	 	 	T-W-1
	 	***	 	 
	May-2007

	 	 	3	 	 	T-W-1
	 	***	 	 
	Jun-2007

	 	 	2	 	 	T-W-1
	 	***	 	 
	Jun-2007

	 	 	1	 	 	T-W-1a
	 	***
	 	***
	Jul-2007

	 	 	2	 	 	T-W-1
	 	***	 	 
	Jul-2007

	 	 	1	 	 	T-W-1a
	 	***
	 	***
	Aug-2007

	 	 	2	 	 	T-W-1
	 	***	 	 
	Aug-2007

	 	 	1	 	 	T-W-1a
	 	***
	 	***
	Sep-2007

	 	 	2	 	 	T-W-1
	 	***	 	 
	Sep-2007

	 	 	1	 	 	T-W-1a
	 	***
	 	***
	Oct-2007

	 	 	2	 	 	T-W-1
	 	***	 	 
	Oct-2007

	 	 	1	 	 	T-W-1a
	 	***
	 	***
	Nov-2007

	 	 	2	 	 	T-W-1
	 	***	 	 
	Nov-2007

	 	 	1	 	 	T-W-1a
	 	***
	 	***
	Dec-2007

	 	 	2	 	 	T-W-1
	 	***	 	 
	Dec-2007

	 	 	1	 	 	T-W-1a
	 	***
	 	***
	Jan-2008

	 	 	1	 	 	T-W-1
	 	***	 	 
	Jan-2008

	 	 	2	 	 	T-W-1a
	 	***
	 	***
	Feb-2008

	 	 	1	 	 	T-W-1
	 	***	 	 
	Feb-2008

	 	 	3	 	 	T-W-1a
	 	***
	 	***
	Mar-2008

	 	 	1	 	 	T-W-1
	 	***	 	 
	Mar-2008

	 	 	2	 	 	T-W-1a
	 	***
	 	***
	Apr-2008

	 	 	1	 	 	T-W-1
	 	***	 	 
	Apr-2008

	 	 	2	 	 	T-W-1a
	 	***
	 	***
	May-2008

	 	 	1	 	 	T-W-1
	 	***	 	 
	May-2008

	 	 	2	 	 	T-W-1a
	 	***
	 	***

 

 

Table 1 to

Purchase Agreement No. 1810

Aircraft Information Table

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Escalation Estimate	 	 
	Delivery	 	Number of	 	Aircraft	 	Adv Payment Base	 	 
	Date	 	Aircraft	 	Block	 	Price Per A/P	 	Serial Number
	Jun-2008

	 	 	1	 	 	T-W-1
	 	***	 	 
	Jun-2008

	 	 	2	 	 	T-W-1a
	 	***
	 	***
	Jul-2008

	 	 	2	 	 	T-W-2a
	 	***	 	 
	Aug-2008

	 	 	2	 	 	T-W-2a
	 	***	 	 
	Sep-2008

	 	 	2	 	 	T-W-2a
	 	***	 	 
	Oct-2008

	 	 	2	 	 	T-W-2a
	 	***	 	 
	Nov-2008

	 	 	2	 	 	T-W-2a
	 	***	 	 
	Dec-2008

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Jan-2009

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Feb-2009

	 	 	2	 	 	T-W-2a
	 	***	 	 
	Mar-2009

	 	 	2	 	 	T-W-2a
	 	***	 	 
	Apr-2009

	 	 	2	 	 	T-W-2a
	 	***	 	 
	May-2009

	 	 	2	 	 	T-W-2a
	 	***	 	 
	Jun-2009

	 	 	2	 	 	T-W-2a
	 	***	 	 
	Jul-2009

	 	 	2	 	 	T-W-2a
	 	***	 	 
	Aug-2009

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Sep-2009

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Oct-2009

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Nov-2009

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Dec-2009

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Jan-2010

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Feb-2010

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Mar-2010

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Apr-2010

	 	 	1	 	 	T-W-2a
	 	***	 	 
	May-2010

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Jun-2010

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Jul-2010

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Aug-2010

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Sep-2010

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Oct-2010

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Jan-2011

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Feb-2011

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Mar-2011

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Apr-2011

	 	 	1	 	 	T-W-2a
	 	***	 	 
	May-2011

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Jun-2011

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Jul-2011

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Aug-2011

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Sep-2011

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Oct-2011

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Jan-2012

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Feb-2012

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Mar-2012

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Apr-2012

	 	 	1	 	 	T-W-2a
	 	***	 	 

 

 

Table 1 to

Purchase Agreement No. 1810

Aircraft Information Table

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Escalation Estimate	 	 
	Delivery	 	Number of	 	Aircraft	 	Adv Payment Base	 	 
	Date	 	Aircraft	 	Block	 	Price Per A/P	 	Serial Number
	May-2012

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Jun-2012

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Jul-2012

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Aug-2012

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Sep-2012

	 	 	1	 	 	T-W-2a
	 	***	 	 
	Oct-2012

	 	 	1	 	 	T-W-2a
	 	***	 	 

 

 

Table 2 to Purchase Agreement No. 1810

(Letter Agreement No. 6-1162-RLL-933R19)

Option Aircraft Information Table

Price Description of Option Aircraft:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Base Aircraft	 	Special	 	Aircraft Basic	 	Base Year
	 	 	Price	 	Features	 	Price	 	Dollars
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Block U Option Aircraft
	 	 	*	**	 	 	*	**	 	 	*	**	 	July 1999
	(without Winglets)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Block U-W Option
Aircraft
	 	 	*	**	 	 	*	**	 	 	 	 	 	July 1999
	(with Winglets)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Block U-W-1 Option
Aircraft
	 	 	*	**	 	 	*	**	 	 	*	**	 	July 1999

	 	 	 	 	 	 	 
	Delivery of Purchase Right Aircraft:

	 	Quantity
	 	 	54	 
	 
	 	 	 	 	 	 
	Delivery Period of Purchase Right Aircraft:

	 	Complete delivery not later than Dec. 31, 2014
	 
	 	 	 	 	 	 
	Condition of Offer for Purchase Right Aircraft:

	 	Subject to Available Position	 	 	 	 

					
	 	 	 	 	 
	Remaining Option

Aircraft:
	 	116
	 	 

 

 

Table 2 to Purchase Agreement No. 1810

(Letter Agreement No. 6-1162-RLL-933R19)

Option Aircraft Information Table

	 	 	 	 	 	 	 	 	 	 	 
	Aircraft	 	Number of	 	Option	 	Adv Payment Base	 	 
	Delivery	 	Option	 	Aircraft	 	Price Per	 	 
	Mo. & Yr.	 	Aircraft	 	Block	 	Option Aircraft	 	Option Exercise
	Jan-2008

	 	 	1	 	 	U-W-1
	 	***
	 	September 1, 2006
	Mar-2008

	 	 	1	 	 	U-W-1
	 	***
	 	November 1, 2006
	Jul-2008

	 	 	2	 	 	U-W-1
	 	***
	 	March 1, 2007
	Aug-2008

	 	 	1	 	 	U-W-1
	 	***
	 	April 2, 2007
	Dec-2008

	 	 	1	 	 	U-W-1
	 	***
	 	August 1, 2007
	Jan-2009

	 	 	3	 	 	U-W-1
	 	***
	 	September 3, 2007
	Mar-2009

	 	 	3	 	 	U-W-1
	 	***
	 	November 1, 2007
	Apr-2009

	 	 	2	 	 	U-W-1
	 	***
	 	December 3, 2007
	May-2009

	 	 	1	 	 	U-W-1
	 	***
	 	January 1, 2008
	Jun-2009

	 	 	1	 	 	U-W-1
	 	***
	 	February 1, 2008
	Jul-2009

	 	 	2	 	 	U-W-1
	 	***
	 	March 3, 2008
	Aug-2009

	 	 	2	 	 	U-W-1
	 	***
	 	April 1, 2008
	Sep-2009

	 	 	1	 	 	U-W-1
	 	***
	 	May 1, 2008
	Oct-2009

	 	 	1	 	 	U-W-1
	 	***
	 	June 2, 2008
	Nov-2009

	 	 	1	 	 	U-W-1
	 	***
	 	July 1, 2008
	Dec-2009

	 	 	1	 	 	U-W-1
	 	***
	 	August 1, 2008
	Jan-2010

	 	 	3	 	 	U-W-1
	 	***
	 	September 1, 2008
	Feb-2010

	 	 	3	 	 	U-W-1
	 	***
	 	October 1, 2008
	Mar-2010

	 	 	2	 	 	U-W-1
	 	***
	 	November 3, 2008
	Apr-2010

	 	 	3	 	 	U-W-1
	 	***
	 	December 1, 2008
	May-2010

	 	 	3	 	 	U-W-1
	 	***
	 	January 1, 2009
	Jun-2010

	 	 	3	 	 	U-W-1
	 	***
	 	February 2, 2009
	Jul-2010

	 	 	2	 	 	U-W-1
	 	***
	 	March 2, 2009
	Aug-2010

	 	 	2	 	 	U-W-1
	 	***
	 	April 1, 2009
	Sep-2010

	 	 	2	 	 	U-W-1
	 	***
	 	May 1, 2009
	Oct-2010

	 	 	3	 	 	U-W-1
	 	***
	 	June 1, 2009
	Nov-2010

	 	 	3	 	 	U-W-1
	 	***
	 	July 1, 2009
	Dec-2010

	 	 	3	 	 	U-W-1
	 	***
	 	August 3, 2009
	Jan-2011

	 	 	3	 	 	U-W-1
	 	***
	 	September 1, 2009
	Feb-2011

	 	 	3	 	 	U-W-1
	 	***
	 	October 1, 2009
	Mar-2011

	 	 	2	 	 	U-W-1
	 	***
	 	November 2, 2009
	Apr-2011

	 	 	3	 	 	U-W-1
	 	***
	 	December 1, 2009
	May-2011

	 	 	3	 	 	U-W-1
	 	***
	 	January 1, 2010
	Jun-2011

	 	 	3	 	 	U-W-1
	 	***
	 	February 1, 2010
	Jul-2011

	 	 	2	 	 	U-W-1
	 	***
	 	March 1, 2010
	Aug-2011

	 	 	2	 	 	U-W-1
	 	***
	 	April 1, 2010
	Sep-2011

	 	 	2	 	 	U-W-1
	 	***
	 	May 3, 2010
	Oct-2011

	 	 	2	 	 	U-W-1
	 	***
	 	June 1, 2010
	Nov-2011

	 	 	3	 	 	U-W-1
	 	***
	 	July 1, 2010

 

 

Table 2 to Purchase Agreement No. 1810

(Letter Agreement No. 6-1162-RLL-933R19)

Option Aircraft Information Table

	 	 	 	 	 	 	 	 	 	 	 
	Aircraft	 	Number of	 	Option	 	Adv Payment Base	 	 
	Delivery	 	Option	 	Aircraft	 	Price Per	 	 
	Mo. & Yr.	 	Aircraft	 	Block	 	Option Aircraft	 	Option Exercise
	Dec-2011

	 	 	2	 	 	U-W-1
	 	***
	 	August 2, 2010
	Jan-2012

	 	 	3	 	 	U-W-1
	 	***
	 	September 1, 2010
	Feb-2012

	 	 	3	 	 	U-W-1
	 	***
	 	October 1, 2010
	Mar-2012

	 	 	2	 	 	U-W-1
	 	***
	 	November 1, 2010
	Apr-2012

	 	 	3	 	 	U-W-1
	 	***
	 	December 1, 2010
	May-2012

	 	 	3	 	 	U-W-1
	 	***
	 	January 3, 2011
	Jun-2012

	 	 	3	 	 	U-W-1
	 	***
	 	February 1, 2011
	Jul-2012

	 	 	2	 	 	U-W-1
	 	***
	 	March 1, 2011
	Aug-2012

	 	 	2	 	 	U-W-1
	 	***
	 	April 1, 2011
	Sep-2012

	 	 	2	 	 	U-W-1
	 	***
	 	May 2, 2011
	Oct-2012

	 	 	2	 	 	U-W-1
	 	***
	 	June 1, 2011
	Nov-2012

	 	 	3	 	 	U-W-1
	 	***
	 	July 1, 2011
	Dec-2012

	 	 	2	 	 	U-W-1
	 	***
	 	August 1, 2011

 

 

6-1162-JMG-669R7

Southwest Airlines Co.

P.O. Box 36611 — Love Field

Dallas, Texas 75235

	 	 	 
	Subject:

	 	***

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

1)
***

2) ***

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

	1.	 	***
	 
	2.	 	***
	 
	3.	 	***
	 
	4.	 	***
	 
	5.	 	***
	 
	6.	 	***
	 
	7.	 	***

Consistent with the spirit of the Letter dated May 4,

	8.	 	***

			
	 	 	 
	P.A. No. 1810
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Southwest Airlines Co.

6-1162-JMG-669R7

	9.	 	***
	 
	10.	 	***
	 
	11.	 	***
	 
	12.	 	***
	 
	13.	 	***.
	 
	14.	 	Confidential Treatment.

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

			
	 	 	 
	P.A. No. 1810
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Southwest Airlines Co.

6-1162-JMG-669R7

	 	 	 	 	 
	Very truly yours,
	 
	 	 	 	 
	THE BOEING COMPANY
	 
	 	 	 	 
	 
	 	 	 	 
	By

	 	/s/ Nobuko Wiles
	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Its

	 	Attorney-In-Fact	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	ACCEPTED AND AGREED TO this
	 
	 	 	 	 
	date: April 20, 2006
	 
	 	 	 	 
	SOUTHWEST AIRLINES CO.
	 
	 	 	 	 
	 
	 	 	 	 
	By:

	 	Laura Wright	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Its

	 	SVP Finance and CFO	 	 
	 

	 	 	 	 

			
	 	 	 
	P.A. No. 1810
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Southwest Airlines Co.
Attachment A to 6-1162-JMG-669R7

***

			
	

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6-1162-RLL-933R20

Southwest Airlines Co.

P.O. Box 36611 — Love Field

Dallas, Texas 75235

			
	Subject:	 	Letter Agreement No. 6-1162-RLL-933R20 to
Purchase Agreement No. 1810 — ***

This Letter Agreement amends Purchase Agreement No. 1810 dated as of January 19, 1994 (the
Agreement) between The Boeing Company (Boeing) and Southwest Airlines Co. (Buyer) relating to Model
737-7H4 aircraft (Aircraft).

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

In consideration of the purchase by Buyer of the Aircraft, Boeing hereby agrees to manufacture and
sell to Buyer and Buyer shall have the option to purchase (Option or Options) the additional Model
737-7H4 aircraft as described in paragraph 1 of Attachment A hereto and listed in Table 2 of the
Agreement (Option Aircraft) and Model 737-7H4 Purchase Right Aircraft summarized in Table 2 of the
Agreement (Purchase Right Aircraft), subject to the terms and conditions set forth below. For the
avoidance of doubt, Buyer and Boeing hereby agree to replace the term “Rollover Option Aircraft”
with “Purchase Right Aircraft” at the execution of Supplemental Agreement No. 47 to the Agreement.

	1.	 	Delivery of Option Aircraft.

     The Option Aircraft will be delivered to Buyer during or before the months set forth in Table
2 of the Agreement.

	2.	 	Delivery of Purchase Right Aircraft.

     2.1 The Purchase Right Aircraft are offered subject to available position during the period
set forth in Table 2 of the Agreement. For the avoidance of any doubt, Buyer and Boeing hereby
agree that the delivery of Purchase Right Aircraft shall be completed by not later than December
31, 2014.

     2.2 ***

			
	

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6-1162-RLL-933R20 Page 2

     2.3 Base Price Adjustments for Purchase Right Aircraft which are converted to Option Aircraft
or firm Aircraft shall be in accordance with Article 2.2.5 of Attachment A to this Letter
Agreement.

     2.4 Upon conversion of a Purchase Right Aircraft into an Option Aircraft, Buyer shall wire
transfer the Deposit of *** to Boeing and Boeing and Buyer shall agree on a delivery position for
that aircraft. Table 2 of the Agreement will be amended accordingly. In the event Buyer
thereafter exercises its right to purchase such Option Aircraft, application of the Deposit will be
in accordance with Article 4.1 herein. If the conversion is a Purchase Right Aircraft to a firm
Aircraft, Buyer shall wire transfer any advance payments due under the Agreement.

     2.5 Buyer and Boeing will consult on a frequent basis to keep each other informed as to
Buyer’s fleet plans and Boeing’s production plans in order to accommodate to the greatest extent
reasonably possible each party’s needs in managing the delivery schedule for Purchase Right
Aircraft and will use its best reasonable efforts to meet Buyer’s needs.

	3.	 	Price.

     3.1 The advance payment base prices of the Option Aircraft are set forth in Table 2 of the
Agreement. The Option Aircraft pricing elements and associated pricing terms and conditions are
given in Attachment A.

     3.2 The Advance Payment Base Prices of the Option Aircraft indicated in Table 2 do include an
amount for special features in addition to those specifically described in Attachment A but do not
include any amount for items of Buyer Furnished Equipment (BFE). An estimate for typical special
features is *** per Aircraft (expressed in 1992 STE dollars) or *** per Aircraft (expressed in 1999
STE dollars). Table 2 in the Agreement lists the Advance Payment Base Price per Option Aircraft.

     3.3 The Option Aircraft purchase price will be the applicable basic price thereof at the time
of Option Aircraft delivery adjusted in accordance with Boeing’s Aircraft escalation provisions
contained in the definitive agreement to purchase the Option Aircraft. The purchase price will
include the price for Seller Purchased Equipment (SPE) if Buyer has elected to change Buyer
Furnished Equipment (BFE) to SPE.

			
	

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6-1162-RLL-933R20 Page 3

	4.	 	Option Aircraft Payment.

     4.1 In consideration of the granting of the Options as set forth herein, on or before the date
Boeing and Buyer enter into a definitive agreement to purchase the Aircraft, Buyer will pay a
deposit to Boeing of for each Option Aircraft (Deposit). In the event Buyer exercises its Options
herein, the amount of the Deposit will be credited against the first advance payment due for such
Option Aircraft pursuant to the advance payment schedule set forth in paragraph 3 of Attachment A.
The Deposits for the Option Aircraft will be refunded to Buyer, without interest, if the parties do
not enter into a definitive Agreement for the Aircraft.

In the event that, after the parties enter into a definitive agreement to purchase the Aircraft,
Buyer does not exercise its Options to purchase the Option Aircraft pursuant to the terms and
conditions set forth herein, Boeing will be entitled to retain the Deposits for the Option Aircraft
except as provided in paragraph 6 herein.

     4.2 Advance payments in the amount of 30% of the advance payment base price will be payable on
the Option Aircraft in accordance with paragraph 3 of Attachment A. The remainder of the Option
Aircraft purchase price is due at the time of delivery of the Option Aircraft.

	5.	 	Option Exercise.

     5.1 To exercise its Option, Buyer will give written or telegraphic notice thereof to Boeing on
or before sixteen (16) months prior to the first day of the delivery month of each Option Aircraft.

In such notice Buyer will select the Option Model type, and the applicable delivery positions.
Table 2 of the Agreement lists the Option Exercise dates.

     5.2 It is understood and agreed that Boeing may accelerate the Option exercise dates specified
above if Boeing must make production decisions which are dependent on Buyer’s decision to buy the
Option Aircraft. If Boeing elects to accelerate the Option exercise dates, Boeing will do so by
giving written or telegraphic notice thereof to Buyer. Such notice will specify the revised Option
exercise dates, which will not be earlier than 30 days after the date of transmittal of such
notice, and the Option Aircraft

			
	

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6-1162-RLL-933R20 Page 4

delivery positions affected by such revision. If Buyer fails to exercise its Option for any Option
Aircraft affected by such revised dates, the Deposit applicable to such Option Aircraft will be
promptly refunded, with interest, to Buyer. The interest rate for calculation of the interest
associated with such refund is the rate of two percent (2%) below the Citibank base rate in effect
from time to time during the period the Option deposit is held by Boeing.

	6.	 	Contract Terms.

     It is understood that Boeing and Buyer will use their best efforts to enter into a definitive
agreement for the Option Aircraft within thirty (30) days after Buyer exercises an Option to
purchase Option Aircraft pursuant to paragraph 5 covering the detailed terms and conditions for the
sale of such Option Aircraft.

Such definitive agreement will include the terms and conditions contained herein together with the
terms and conditions, not inconsistent herewith, contained in Boeing’s then-current standard form
of purchase agreement for the sale of Model 737-700 aircraft in effect as of the date of Option
exercise and such additional terms and conditions as may be mutually agreed upon. In the event the
parties have not entered into such an agreement within the time period contemplated herein, either
party may, exercisable by written or telegraphic notice given to the other within thirty (30) days
after such period, terminate the purchase of such Option Aircraft.

	7.	 	Termination of Option to Purchase.

     Either Boeing or Buyer may terminate the Options to purchase an Option Aircraft if any of the
following events are not accomplished by the respective dates contemplated in this letter
agreement, or in the Agreement, as the case may be:

     (i) termination of the purchase of the Aircraft under the Agreement for any reason;

     (ii) payment by Buyer of the Deposit with respect to an Option Aircraft pursuant to paragraph
4.1 herein;

     (iii) exercise of an Option to purchase an Option Aircraft pursuant to the terms hereof.

     Any termination of an Option to purchase by Boeing which is based on the termination of the
purchase of

			
	

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6-1162-RLL-933R20 Page 5

Aircraft under the Agreement will be on a one-for-one basis, for each Aircraft so terminated.

Any cancellation of an Option to purchase which is based on failure to make the required Deposit or
to exercise the Option to purchase shall only apply to the Option Aircraft so canceled.

Termination of an Option to purchase provided by this letter agreement will be caused by either
party giving written notice to the other within 10 days after the applicable date. Upon receipt of
such notice, all rights and obligations of the parties with respect to an Option Aircraft for which
the Option to purchase has been terminate will thereupon terminate.

If termination is result of a revision of an Option exercise date by Boeing pursuant to paragraph
5.2, Boeing will promptly refund to Buyer, with interest, any payments received from Buyer,
including the Deposit, with respect to the Option Aircraft for which the Option is terminated. If
termination is for any other reason, Boeing will promptly refund to Buyer, without interest, any
payments received from Buyer with respect to the affected Option Aircraft, except the Deposit,
which Buyer may apply to any model Boeing aircraft purchased by Buyer from Boeing at a future date.

			
	

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Southwest Airlines Co.

6-1162-RLL-933R20 Page 6

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

	 	 	 	 	 
	Very truly yours,	 	 
	 
	 	 	 	 
	THE BOEING COMPANY	 	 
	 
	 	 	 	 
	By

	 	/s/ Nobuko Wiles	 	 
	 

	 	 	 	 
	Its

	 	Attorney-In-Fact	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	ACCEPTED AND AGREED TO this	 	 
	date:

	 	April 20, 2006	 	 
	 

	 	 	 	 
	SOUTHWEST AIRLINES CO.	 	 
	 
	 	 	 	 
	By

	 	/s/ Laura Wright	 	 
	 

	 	 	 	 
	Its

	 	SVP Finance & CFO	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Attachments	 	 

			
	

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Attachment A to

6-1162-RLL-933R20

Page 1

Model 737-7H4 Aircraft

	1.	 	Option Aircraft Description and Changes.

     1.1 Aircraft Description. The Option Aircraft is described by Boeing Detail
Specification D6-38808-1, Dated October 30 ,1996, for Block “U” Option Aircraft by Boeing Detail
Specification D6-38808-1, Rev. A, Dated February 24, 1998, and for Block “U-W-1” Option Aircraft by
Boeing Detail Specification D6-38808-1, Rev. G, Dated July 26, 2005.

     1.2 Changes. The Detail Specification will be revised to include:

          (1) Changes applicable to the basic Model 737-700 aircraft which are developed by Boeing
between the date of the Detail Specification and the signing of a definitive agreement to purchase
the Option Aircraft.

          (2) Changes mutually agreed upon.

          (3) Changes required to obtain a Standard Certificate of Airworthiness.

          (4) To provide sufficient Option Aircraft manufacturing and procurement lead time it is
necessary for Boeing and Buyer to reach final agreement on the Option Aircraft configuration,
including BFE/SPE vendor selection fifteen (15) months prior to delivery of each Option Aircraft.
If such items are not resolved by the indicated dates, Boeing reserves the right to amend this
letter agreement:

               (i) to adjust the scheduled delivery of the Option Aircraft to a later time period and,

               (ii) to make such other changes as are appropriate and consistent with the revised Option
Aircraft deliveries.

     1.3 Effect of Changes. Changes to the Detail Specification incorporated pursuant to
the provisions of the clauses above will include the effects of such changes upon Option Aircraft
weight, balance, design and performance. Performance guarantees for the Option Aircraft which are
mutually acceptable to the parties will be included in the definitive agreement for the Option
Aircraft.

			
	

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Attachment A to

6-1162-RLL-933R20

Page 2

	2.	 	Price Description

     2.1 Price Elements Per Aircraft. The Aircraft Basic Price detailed in Table 2 of the
Agreement is added to the Estimated Escalation and Estimated Escalation Sharing to determine the
Advance Payment Base Price of the Option Aircraft (also listed in Table 2 of the Agreement). At
the signing of this Letter Agreement, the Estimated Escalation Sharing is zero for all Option
Aircraft.

     2.2 Price Adjustments For Option Aircraft Delivering From January 2008 through December
2014.

          2.2.1 Escalation Adjustments. The Advance Payment Base Price per Option Aircraft in
Table 2 is based on 4th Quarter 2005 forecast at the execution of Letter Agreement No.
6-1162-RLL-933R20. Buyer and Boeing agree to review and update Advance Payment Base Price of
Option Aircraft as such Option Aircraft is added to Table 2 or if Boeing and Buyer agree to
incorporate a new escalation provision into the Agreement.

          2.2.2 Base Price Adjustments for FAA Changes. The Aircraft Basic Price of the Option
Aircraft will be adjusted for any FAA mandated changes incorporated into the Aircraft.

          2.2.3 Price Adjustments for Changes. Boeing may adjust the Aircraft Basic Price and
the Advance Payment Base Price for any changes mutually agreed upon subsequent to the date that
Buyer and Boeing enter into a definitive agreement for the Option Aircraft.

          2.2.4 Base Price Adjustments. The Aircraft Basic Price of the Option Aircraft will be
adjusted to Boeing’s then-current prices as of the date of execution of the definitive agreement
for the Option Aircraft in accordance with the agreement reached below. The Aircraft Basic Price
starting point for Option Aircraft delivering in 2003 is *** (July 1992 STE), for Option Aircraft
delivering in 2004 is *** (July 1992 STE), for Options delivering in 2005 through February 2006 is
*** (July 1992 STE), for Block “U” Option Aircraft is *** (July 1999 STE), for Block “U-W” Option
Aircraft is *** (July 1999 STE) and for Block “U-W-1” Option Aircraft is *** July 1999 STE). Such
Aircraft Basic Price may increase in accordance with paragraphs 2.2.1, 2.2.2, and 2.2.3. For any
other changes to the Aircraft Basic Price, Boeing may increase the Aircraft Basic Price by a
maximum of *** (July 1992 STE) for Aircraft delivering in 2005; by a maximum of *** (July 1992 STE)
per year or portion thereof starting in January 2006 through 2009. For Block “U” Option Aircraft
Boeing may increase the Aircraft

			
	

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Attachment A to

6-1162-RLL-933R20

Page 3

Basic Price by a maximum of *** (July 1999 STE) per year or portion thereof starting in January
2008.

          2.2.6 BFE to SPE. An estimate of the total price for items of Buyer Furnished
Equipment (BFE) changed to Seller Purchased Equipment (SPE) pursuant to the Configuration
Specification is included in the Option Aircraft price build-up. The purchase price of the Option
Aircraft will be adjusted by the price charged to Boeing for such items plus 10% of such price. If
all BFE except developmental avionics is converted to SPE, Boeing will waive the 10% fee.

			
	

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Attachment A to

6-1162-RLL-933R20

Page 4

	3.	 	Advance Payment Schedules, Prices and Adjustments.

     3.1 Buyer will pay to Boeing advance payments for the Option Aircraft on the dates and in the
amounts determined below.

	 	 	 
	 	 	Amount Due per Aircraft
	 	 	(Percentage times
	Due Date of Payment	 	Advance Payment Base Price)
	 
	 	 
	Deposit
	 	*** (if applicable)
	 
	 	 
	18 months prior to the first
	 	15% (less the
	day of the scheduled delivery
	 	Deposit if any)
	month of the Aircraft
	 	 
	 
	 	 
	12 months prior to the first
	 	5%
	day of the scheduled delivery
month of the Aircraft
	 	 
	 
	 	 
	9 months prior to the first
	 	5%
	day of the scheduled delivery
month of the Aircraft
	 	 
	 
	 	 
	6 months prior to the first
	 	5%
	day of the scheduled delivery
month of the Aircraft
	 	 
	 
	 
	 
	 	 
	Total
	 	30%

Any advance payments that would be past due as of the date of signing the definitive purchase
agreement for the Option Aircraft in accordance with the above schedule are due and payable on such
date.

     3.2 Option Aircraft advance payment base prices will be increased or decreased, as
appropriate, at the time of signing of the definitive purchase agreement for the Option Aircraft,
using the then-current forecasted aircraft escalation factors used by Boeing, to determine the
amount of the advance payments to be made by Buyer on the Option Aircraft.

			
	

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