Document:

SA-88 PA-18101 redacted

	
	
	Supplemental Agreement No. 88

	 

	to

	 

	Purchase Agreement No. 1810

	 

	between

	 

	THE BOEING COMPANY

	 

	and

	 

	SOUTHWEST AIRLINES CO.

	 

	Relating to Boeing Model 737-7H4 and 737-8H4 Aircraft

THIS SUPPLEMENTAL AGREEMENT is entered into as of August 20, 2014, 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).

Buyer and Boeing entered into Purchase Agreement No. 1810 dated January 19, 1994, as amended and supplemented (Purchase Agreement), relating to the purchase and sale of Boeing Model 737-7H4 aircraft and 737-8H4 aircraft; and this Supplemental Agreement is an amendment to and is incorporated into the Purchase Agreement.  Capitalized terms used herein but not otherwise defined shall have the meaning set forth in the Purchase Agreement.

WHEREAS, Boeing and Buyer agree to amend the Purchase Agreement by revising the delivery month of one (1) Block 800LUV Aircraft identified by MSN 36909 (the Subject Aircraft) from October 2014 to September 2014.

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

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

2. Table 1c, “Aircraft Information Table – Block 800LUV Aircraft (non-ETOPS Configuration),” to the Purchase Agreement is deleted in its entirety and a new Table 1c is attached hereto and incorporated into the Purchase Agreement by this reference.  The new Table 1c reflects the revised delivery month of MSN 36909. 

***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-88-1

		
	3.
	Attachment A to Letter Agreement No. SWA-PA-1810-LA-1001315R3, *** is deleted in its entirety and a new Attachment A (identified by “SA-88”) is attached hereto and incorporated into the Purchase Agreement by this reference.  The new Attachment A reflects the revised delivery month of MSN 36909.

4.As a result of the revised delivery month of the Subject Aircraft, an excess in Advance Payments made by Buyer to Boeing exists in the amount of ***.  The Advance Payment excess created hereby will be applied to the Aircraft Price of MSN 36909 at the time of delivery.  

The Purchase 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/ Jeff Solomon       
	By: /s/ Chris Monroe____________

	

Its:    Attorney‐In‐Fact         
	        Chris Monroe
Its:  VP, Treasurer_______________

	
		
	P.A. No. 1810
	SA-88-2

	
			
	TABLE OF CONTENTS

	 
	Page
	SA

	 
	Number
	Number

ARTICLES

	
				
	1.
	Subject Matter of Sale
	1-1
	SA-82

	 
	 
	 
	 

	2.
	Delivery, Title and Risk
	 
	 

	 
	of Loss
	2-1
	SA-28

	 
	 
	 
	 

	3.
	Price of Aircraft
	3‐1
	SA-82

	 
	 
	 
	 

	4.
	Taxes
	4-1
	 

	 
	 
	 
	 

	5.
	Payment
	5‐1
	 

	 
	 
	 
	 

	6.
	Excusable Delay
	6‐1
	 

	 
	 
	 
	 

	7.
	Changes to the Detail
	 
	 

	 
	Specification
	7-1
	SA-73

	 
	 
	 
	 

	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-88

	
			
	Table of Contents

	 
	 
	SA

	 
	 
	Number

TABLE

	
				
	1a
	Aircraft Information Table – Block 700LUV Aircraft
	 
	SA-85

	 
	 
	 
	 

	1b
	Aircraft Information Table – Block 800LUV Aircraft
	 
	SA-82

	 
	 
	 
	 

	1c
	Aircraft Information Table – Block 800LUV Aircraft
	 
	SA-88

	 
	(non-ETOPS Configuration)
	 
	 

EXHIBITS

	
				
	A-5
	Aircraft Configuration – Block 700LUV Aircraft
	 
	SA-75

	 
	 
	 
	 

	A-6
	Aircraft Configuration – Block 800LUV Aircraft
	 
	SA-75

	 
	 
	 
	 

	A-7
	Aircraft Configuration – Block 800LUV Aircraft
	 
	SA-84

	 
	(non-ETOPS Configuration)
	 
	 

	 
	 
	 
	 

	B
	***
	 
	SA-75

	 
	 
	 
	 

	C
	Customer Support Document
	 
	 

	 
	 
	 
	 

	C-2
	737-800 Customer Support Document
	 
	SA-75

	 
	 
	 
	 

	D-2
	Economic Price Adjustment
	 
	SA-75

	 
	ECI-MFG/CPI (July 2011 Base Price)
	 
	 

	 
	 
	 
	 

	E
	Buyer Furnished Equipment
	 
	SA-75

	 
	Provisions Document
	 
	 

	 
	Attachment A – 737-7H4 Aircraft (through 2012)
	 
	 

	 
	Attachment B – 737-8H4 Aircraft (2012-2018)
	 
	SA-87

	 
	 
	 
	 

	F
	Defined Terms Document
	 
	 

LETTER AGREEMENTS

	
				
	1810-1R1
	Waiver of Aircraft Demonstration Flight
	 
	SA-75

	
			
	P.A. No. 1810
	ii
	 

	K/SWA
	 
	SA-88

	
			
	Table of Contents

	 
	 
	SA

	 
	 
	Number

RESTRICTED LETTER AGREEMENTS

	
				
	6‐1162‐RLL‐932R3
	***
	 
	SA-75

	 
	 
	 
	 

	6‐1162‐RLL‐934R5
	Disclosure of Confidential
	 
	SA-75

	 
	Information
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	6‐1162‐RLL‐941R3
	Other Matters
	 
	SA-75

	 
	 
	 
	 

	 
	 
	 
	 

	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

	
				
	SWA-PA-1810-LA-1001315R3
	***
	 
	SA-85

	 
	Attachment A
	 
	SA-88

	 
	 
	 
	 

	 
	 
	 
	 

	SWA-PA-1810-LA-1003498 R1
	***
	 
	SA-75

	 
	 
	 
	 

	SWA-PA-1810-LA-1003490R2
	***
	 
	SA-82

	 
	 
	 
	 

	SWA-PA-1810-LA-1003367R1
	***
	 
	SA-75

	 
	 
	 
	 

	SWA-PA-1810-LA-1105883
	Aircraft Model Substitution
	 
	SA-75

	 
	 
	 
	 

	SWA-PA-1810-LA-1105884
	Option Aircraft
	 
	SA-75

	 
	Attachment B– Option Aircraft Information Table SA-83

	 
	 
	 
	 

	 
	 
	 
	 

	SWA-PA-1810-LA-1105885R2
	***
	 
	SA-84

	 
	 
	 
	 

	SWA-PA-1810-LA-1105886R1
	***
	 
	SA-82

	 
	 
	 
	 

	 
	 
	 
	 

	SWA-PA-1810-LA-1105887
	***
	 
	SA-75

	 
	 
	 
	 

	
			
	P.A. No. 1810
	iii
	 

	K/SWA
	 
	SA-88

	
			
	Table of Contents

	 
	 
	SA

	 
	 
	Number

	
				
	SWA-PA-1810-LA-1105888R4
	***
	 
	SA-85

	 
	 
	 
	 

	SWA-PA-1810-LA-1105889
	***
	 
	SA-75

	 
	 
	 
	 

	SWA-PA-01810/03729-LA-1301169
	***
	 
	SA-83

	 
	 
	 
	 

	SWA-PA-1810-LA-1303010
	***
	 
	SA-85

	
		
	ADDITIONAL LETTERS (FOR REFERENCE) – INACTIVE (as of SA-82)

	6-1162-MSA-288
	Business Offer – Enhanced Ground Proximity

	 
	Warning System (EGPWS) – Activiation – Peaks

	 
	and Obstacles Feature

	 
	(Not applicable to Block 700LUV & Block 800LUV Aircraft)

	 
	 

	6-1162-JMG-501R2
	Business Offer – ACARS package

	 
	(Not applicable to Block 700LUV & Block 800LUV Aircraft)

INACTIVE / DELETED TABLES, EXHIBITS, AND LETTER AGREEMENTS

TABLE

	
				
	Table
	Title
	Last Updated under SA
	Current Status

	1
	Aircraft Information Table
	SA-75
	Inactive

	2
	Option Aircraft Information Table
	SA-74
	Deleted under SA-75

EXHIBITS

	
				
	Exhibits
	Title
	Last Updated under SA
	Current Status

	A
	Aircraft Configuration – 737-700
	SA-36
	Inactive

	A-Winglet
	Aircraft Configuration
	SA-36
	Inactive

	A-1-Winglet
	Aircraft Configuration
	SA-36
	Inactive

	A-1A
	Aircraft Configuration - 737-700 Block T-W-2c
	SA-36
	Inactive

	A-2
	Aircraft Configuration - 737-700 Block T-W-2 / T-W-2a
	SA-47
	Inactive

	A-3
	Aircraft Configuration - 737-700 Block T-W-2 / T-W-2a
	SA-61
	Inactive

	
			
	P.A. No. 1810
	iv
	 

	K/SWA
	 
	SA-88

	
	
	TABLE OF CONTENTS

	
				
	A-4
	Aircraft Configuration - 737-700 Block T-W-2b Aircraft
	SA-66
	Inactive

	C.2
	737-800 Customer Support Variables
	SA-71
	Deleted under SA-75

	D
	Price Adjustment Due to 
Economic Fluctuations – Aircraft Price Adjustment
(July 1992 Base Price)
	 
	Inactive

	D-1
	Price Adjustment Due to Economic Fluctuations – Aircraft Price Adjustment
(July 1999 Base Price)
	SA-13
	Inactive

	E.2
	737-800 Buyer Furnished Equipment Provisions Document
	SA-73
	Deleted under SA-75

RESTRICTED LETTER AGREEMENTS 

	
				
	Letter Agreement
	Title
	Last Updated under SA
	Current Status

	6‐1162‐RLL‐933R21
	Option Aircraft
	SA-60
	Deleted under SA-75

	6‐1162‐RLL‐935R1
	Performance Guarantees
	SA-1
	Inactive

	6‐1162‐RLL‐936R4
	Certain Contractual Matters
	SA-4
	Inactive

	6‐1162‐RLL‐937
	Alternate Advance Payment Schedule
	 
	Inactive

	6‐1162‐RLL‐938
	***
	 
	Inactive

	6‐1162‐RLL‐939R1
	Certification Flight Test Aircraft
	SA-1
	Inactive

	6‐1162‐RLL‐940R1
	Training Matters
	SA-1
	Inactive

	6‐1162‐RLL‐942
	Open Configuration Matters
	 
	Inactive

	6‐1162‐RLL‐943R1
	Substitution Rights
	SA-6
	Deleted under SA 75

	6‐1162‐RLL‐944
	***

	 
	Inactive

	6-1162-RLL-945
	Comparison of 737-7H4 and 737-3H4 Block Fuel Burn
	 
	Inactive

	6-1162-RLL-1855R3
	Additional Contractual Matters
	SA-4
	Inactive

	6-1162-RLL-1856
	***
	SA-1
	Inactive

	6-1162-RLL-1857
	Service Ready Validation Program Field Test
	SA-1
	Inactive

	6-1162-RLL-1858R1
	Escalation Matters
	SA-4
	Inactive

	6-1162-RLL-2036
	Amortization of Costs for
Customer Unique Changes
	SA-1
	Inactive

	
			
	P.A. No. 1810
	v
	 

	K/SWA
	 
	SA-88

	
	
	TABLE OF CONTENTS

	
				
	Letter Agreement
	Title
	Last Updated under SA
	Current Status

	6-1162-RLL-2037
	Reconciliation of the Aircraft Basic Price
	SA-1
	Inactive

	6-1162-RLL-2073
	Maintenance Training Matters
	SA-1
	Inactive

	6-1162-KJJ-058R1
	Additional Substitution Rights
	SA-71
	Deleted under SA-75

	6-1162-KJJ-150
	Flight Control Computer & Mode Control Panel Spares Matter
	SA-14
	Inactive

	6-1162-MSA-185R3
	Delivery Change Contractual Matters
	SA-21
	Inactive

	6-1162-JMG-747R1
	***
	SA-36
	Inactive

	6-1162-CHL-217
	Rescheduled Flight Test Aircraft
	SA-32
	Inactive

	6-1162-NIW-606R1
	***
      
	SA-36
	Inactive

	6-1162-NIW-640
	Early Delivery of Two April 2004  Aircraft
	SA-35
	Inactive

	6-1162-NIW-889
	Warranty - Exterior Color Schemes and Markings for YA143 and on
	SA-39
	Inactive

	6-1162-NIW-1142
	***

	SA-43
	Inactive

	6-1162-NIW-1369
	*** 

	SA-46
	Inactive

	6-1162-NIW-1983
	***
	SA-62
	Inactive

	SWA-PA-1810-LA-1000419
	***

	SA-64
	Inactive

	6-1162-NIW-890R1
	***

	SA-75

SA-39
	Inactive

	6-1162-KJJ-054R2
	Business Matters
	SA-75
	Inactive

	6-1162-JMG-669R9
	***

	SA-75

SA-75
SA-54
	Inactive

	SWA-PA-1810-LA-02710R1
	***
	SA-72
	Inactive

	
			
	P.A. No. 1810
	vi
	 

	K/SWA
	 
	SA-88

	
	
	Table 1c to

	Purchase Agreement No. PA-01810

	Aircraft Delivery, Description, Price and Advance Payments

	Block 800LUV Aircraft (non-ETOPS Configuration)

	
							
	Airframe Model/MTOW:
	737-800
	174200 pounds
	 
	Detail Specification:                               D019A001SWA38P-1 Rev C (3/29/2013)

	 
	 
	 
	 
	 
	 
	 

	Engine Model/Thrust:
	CFM56-7B27
	27300 pounds
	Note 1
	Base Aircraft Price Base Year/Escalation  Formula:
	Jul-11
	ECI-MFG/CPI

	 
	 
	 
	 
	 
	 
	 

	Base Aircraft Price:
	 
	***
	 
	Engine Price Base Year/Escalation  Formula:
	N/A
	N/A

	
		
	Special Features:
	***

	 
	 

	Add'l Features/Changes
	***

	
					
	Total Special Features (Exhibit A-7)
	***
	 
	 
	 

	 
	 
	 
	 
	 

	Sub-Total of Airframe and Features:
	*** 
	 
	Aircraft Price Escalation Data:
	 

	 
	 
	 
	 
	 

	Engine Price (Per Aircraft):
	*** 
	 
	Base Year Index (ECI):
	***

	 
	 
	 
	 
	 

	Aircraft Basic Price (Excluding BFE/SPE):
	*** 
	 
	Base Year Index (CPI):
	***

	 
	 
	 
	 
	 

	Buyer Furnished Equipment (BFE) Estimate:
	***
	 
	 
	 

	 
	 
	 
	 
	 

	Seller Purchased Equipment (SPE) Estimate:
	***
	 
	 
	 

	
											
	

Delivery

Date
	

Number of

Aircraft
	

Escalation

Factor

(Airframe)
	

Aircraft

Serial

Number
	

Escalation

Forecast
	

Sub-Block

Note 2
	

Escalation Estimate

Adv Payment Base

Price Per A/P
	

Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):

	

At Signing

***
	

24 Mos.

***
	

21/18/12/9/6 Mos.

***
	

Total

***

	

Sep-2013
	

3
	

***
	36933, 36912, 36914
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

Nov-2013
	

3
	

***
	36915, 33939, 42526
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

Dec-2013
	

3
	

***
	36917, 36919, 36731
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

Mar-2014
	

2
	

***
	

37004, 36896
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

Apr-2014
	

3
	

***
	

42384, 36894, 36895
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

May-2014
	

3
	

***
	

36897, 42385, 42521
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

Jun-2014
	

4
	

***
	

36898, 36905, 42522, 42523
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

Jun-2014
	

2
	

***
	

60082, 60083
	

***
	

OPEX
	

***
	

***
	

***
	

***
	

***

	

Jul-2014
	

1
	

***
	

36911
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

Jul-2014
	

3
	

***
	

60084, 60085, 60086
	

***
	

OPEX
	

***
	

***
	

***
	

***
	

***

	

Aug-2014
	

6
	

***
	36907, 42524,35973, 42525,
36935, 42528
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

Sep-2014
	

2
	

***
	

42527, 42531
	

***
	 
	

***
	

***
	

***
	

***
	

***

	
			
	SWA-PA-01810
	 
	SA-88

	63879 / 63887 / 64110 / 64111 / 66379 / 68788 / 70150
	Boeing Proprietary
	Page 1

	
	
	Table 1c to

	Purchase Agreement No. PA-01810

	Aircraft Delivery, Description, Price and Advance Payments

	Block 800LUV Aircraft (non-ETOPS Configuration)

	
											
	

Delivery

Date
	Number of

 Aircraft
	

Escalation

Factor

(Airframe)
	

Aircraft

Serial

Number
	

Escalation

Forecast
	

Sub-Block

Note 2
	

Escalation Estimate

Adv Payment Base

Price Per A/P
	

Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):

	

At Signing

***
	

24 Mos.

***
	

21/18/12/9/6 Mos.

***
	

Total

***

	

Sep-2014
	

1
	

***
	

36909
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

Oct-2014
	1
	

***
	36920
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

Nov-2014
	

1
	

***
	

36971
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

Dec-2014
	

2
	

***
	37037, 37045
	

***
	 
	

***
	***
	

***
	

***
	

***

	

Dec-2014
	

2
	

***
	42529, 42530
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

Jan-2015
	

2
	

***
	36899, 42535
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

Feb-2015
	

3
	

***
	36901, 36654, 36906
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

Mar-2015
	

2
	

***
	36902, 36936
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

Apr-2015
	

2
	

***
	36649, 36652
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

May-2015
	

2
	

***
	36903, 36657
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

Jun-2015
	

2
	

***
	36655, 36656
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

Nov-2015
	

3
	

***
	36937, 36715, 36940
	

***
	 
	

***
	

***
	

***
	

***
	

***

	

Dec-2015
	

3
	

***
	36941, 36734, 35976
	

***
	 
	

***
	

***
	

***
	

***
	

***

	
		
	Total:
	61

Notes:
1)  ***

2)  The sub-block identifier is used to denote applicability of certain business terms as referenced in Letter Agreement SWA-PA-1810-LA-1105888R4 to the Purchase Agreement.

	
			
	SWA-PA-01810
	 
	SA-88

	63879 / 63887 / 64110 / 64111 / 66379 / 68788 / 70150
	Boeing Proprietary
	Page 2

	
	
	Attachment A to SWA-PA-1810-LA1001315R3

	Page 1 of 2

***

Letter Agmt SWA-PA-1810-LA-1001315R3; paragraph 3
	
							
	No.
1
	Model
737-700
	Aircraft Block
T-W-2b
	MSN's
36962
	Current Delivery Mo.
July-11
	Base Year
1999
	***
***

	2
	737-700
	T-W-2b
	36963
	July-11
	1999
	***

	3
	737-700
	T-W-2b
	36965
	August-11
	1999
	***

	4
	737-700
	T-W-2b
	36967
	October-11
	1999
	***

	5
	737-800
	800LUV
	36980
	March-12
	2011
	***

	6
	737-800
	800LUV
	36983
	April-12
	2011
	***

	7
	737-800
	800LUV
	36985
	May-12
	2011
	***

	8
	737-800
	800LUV
	36987
	May-12
	2011
	***

	9
	737-800
	800LUV
	36990
	July-12
	2011
	***

	10
	737-800
	800LUV
	36992
	August-12
	2011
	***

	11
	737-800
	800LUV
	36994
	September-12
	2011
	***

	12
	737-800
	800LUV
	37003
	November-12
	2011
	***

	13
	737-800
	800LUV
	37009
	December-12
	2011
	***

	14
	737-800
	800LUV
	36973
	March-13
	2011
	***

	15
	737-800
	800LUV
	36998
	March-13
	2011
	***

	16
	737-800
	800LUV
	36908
	April-13
	2011
	***

	17
	737-800
	800LUV
	36933
	September-13
	2011
	***

	18
	737-800
	800LUV
	42526
	November-13
	2011
	***

	19
	737-800
	800LUV
	37004
	March-14
	2011
	***

	20
	737-800
	800LUV
	42521
	May-14
	2011
	***

	21
	737-800
	800LUV
	42522
	June-14
	2011
	***

	22
	737-800
	800LUV
	60082
	June-14
	2011
	***

	23
	737-800
	800LUV
	60083
	June-14
	2011
	***

	24
	737-800
	800LUV
	42523
	June-14
	2011
	***

	25
	737-800
	800LUV
	60084
	July-14
	2011
	***

	26
	737-800
	800LUV
	60085
	July-14
	2011
	***

	27
	737-800
	800LUV
	60086
	July-14
	2011
	***

	28
	737-800
	800LUV
	42524
	August-14
	2011
	 

	29
	737-800
	800LUV
	42525
	August-14
	2011
	***

	30
	737-800
	800LUV
	36935
	August-14
	2011
	 

	31
	737-800
	800LUV
	42527
	September-14
	2011
	 

	32
	737-800
	800LUV
	42528
	August-14
	2011
	***

	33
	737-800
	800LUV
	42531
	September-14
	2011
	 

	34
	737-800
	800LUV
	36909
	September-14
	2011
	 

	35
	737-800
	800LUV
	42529
	December-14
	2011
	 

	36
	737-800
	800LUV
	42530
	December-14
	2011
	 

	37
	737-800
	800LUV
	37045
	December-14
	2011
	 

	38
	737-800
	800LUV
	37037
	December-14
	2011
	 

	39
	737-800
	800LUV
	42535
	January-15
	2011
	 

	40
	737-800
	800LUV
	36940
	November-15
	2011
	 

	41
	737-700
	700LUV
	36938
	April-16
	2011
	 

	42
	737-700
	700LUV
	36939
	May-16
	2011
	 

	43
	737-700
	700LUV
	36945
	July-16
	2011
	 

	44
	737-700
	700LUV
	36977
	September-16
	2011
	 

	45
	737-700
	700LUV
	42532
	January-17
	2011
	 

	46
	737-700
	700LUV
	36910
	January-17
	2011
	 

	47
	737-700
	700LUV
	36970
	February-17
	2011
	 

	48
	737-700
	700LUV
	36969
	February-17
	2011
	 

	
	
	SA-88

	
	
	Attachment A to SWA-PA-1810-LA1001315R3

	Page 2 of 2

	
						
	49
	737-700
	700LUV
	36972
	March-17
	2011

	50
	737-700
	700LUV
	36927
	April-17
	2011

	51
	737-700
	700LUV
	36974
	April-17
	2011

	52
	737-700
	700LUV
	36925
	May-17
	2011

	53
	737-700
	700LUV
	36975
	May-17
	2011

	54
	737-700
	700LUV
	36976
	June-17
	2011

	55
	737-700
	700LUV
	36926
	January-18
	2011

	56
	737-700
	700LUV
	42533
	February-18
	2011

	57
	737-700
	700LUV
	42545
	February-18
	2011

	58
	737-700
	700LUV
	42534
	March-18
	2011

	59
	 
	 
	tbd
	 
	 

	60
	 
	 
	tbd
	 
	 

	61
	 
	 
	tbd
	 
	 

	62
	 
	 
	tbd
	 
	 

	
	
	SA-88LUV-9.30.2014-Ex 10.2

Exhibit 10.2

AMENDED AND RESTATED
SOUTHWEST AIRLINES CO.
2005 EXCESS BENEFIT PLAN
(as amended and restated effective for plan years beginning on and after January 1, 2015)

1

AMENDED AND RESTATED
SOUTHWEST AIRLINES CO.
2005 EXCESS BENEFIT PLAN
(as amended and restated effective for plan years beginning on and after January 1, 2015)
Table of Content
	
			
	 
	 
	Page

	ARTICLE I
	DEFINITIONS
	1

	ARTICLE II
	ELIGIBILITY
	3

	ARTICLE III
	CREDITS TO ACCOUNT
	3

	ARTICLE IV
	ENTITLEMENT TO BENEFITS
	4

	ARTICLE V
	PAYMENT OF BENEFITS
	5

	ARTICLE VI
	IN-SERVICE WITHDRAWALS AND LOANS
	8

	ARTICLE VII
	ADMINISTRATION OF THE PLAN
	8

	ARTICLE VIII
	CLAIMS REVIEW PROCEDURE
	9

	ARTICLE IX
	LIMITATION OF RIGHTS
	11

	ARTICLE X
	LIMITATION OF ASSIGNMENT AND PAYMENTS TO LEGALLY INCOMPETENT DISTRIBUTEE
	11

	ARTICLE XI
	AMENDMENT TO OR TERMINATION OF THE PLAN
	11

	ARTICLE XII
	STATUS OF PARTICIPANT AS UNSECURED CREDITOR
	12

	ARTICLE XIII
	GENERAL AND MISCELLANEOUS
	13

i

AMENDED AND RESTATED 
SOUTHWEST AIRLINES CO.
2005 EXCESS BENEFIT PLAN
(as amended and restated effective for plan years beginning on and after January 1, 2015)
PREAMBLE
WHEREAS, Southwest Airlines Co., a corporation formed under the laws of the State of Texas, previously established the Southwest Airlines Co. 2005 Excess Benefit Plan, as amended and restated effective January 1, 2009, an excess benefit plan for the exclusive benefit of a select group of highly compensated employees, to restore retirement benefits decreased due to limitations imposed by Section 415 of the Internal Revenue Code of 1986; and
WHEREAS, such plan has been designed to comply with Section 409A of the Internal Revenue Code and the provisions of the final regulations promulgated pursuant to Section 409A of the Internal Revenue Code, as well as other Department of Treasury and Internal Revenue Service guidance; and
WHEREAS, Southwest Airlines Co. now desires to amend and restate such plan to conform to changes in Federal law defining the term “spouse”; and
WHEREAS, Southwest Airlines Co. intends that any Participant or Beneficiary under such plan shall have the status of an unsecured general creditor with respect to the Plan and any Trust Fund; and
NOW, THEREFORE, the 2005 Excess Benefit Plan is hereby amended and restated in its entirety, effective for Plan Years commencing on and after January 1, 2015, as follows: 
ARTICLE I
DEFINITIONS

 1.1    “Account” shall mean the record maintained by the Committee showing the monetary value of the individual interest in the Plan of each Participant or Beneficiary.  The term “Account” shall refer only to a bookkeeping entry and shall not be construed to require the segregation of assets on behalf of any Participant or Beneficiary.
 1.2    “Affiliate” means each entity that would be considered a single employer with the Company under Section 414(b) or Section 414(c) of the Code, except that the phrase “at least 50%” shall be substituted for the phrase “at least 80%” as used therein.
 1.3    “Aggregated Plan” means all agreements, methods, programs and other arrangements that are aggregated with this Plan under Section 1.409A-1(c) of the Treasury Regulations.
 1.4    “Beneficiary” shall mean, with respect to each Participant, the beneficiary of such Participant under the Southwest Airlines Co. ProfitSharing Plan.

1

 1.5    “Board” shall mean the Board of Directors of the Company.
 1.6    “Code” shall mean the Internal Revenue Code of 1986, as it may be amended from time to time, and the rules and regulations promulgated thereunder.
 1.7    “Committee” shall mean the committee designated by the Board to administer the Plan.
 1.8    “Company” shall mean Southwest Airlines Co., or its successor or successors.
 1.9    “Deferral Amount” shall mean that portion of a Participant’s Excess Amount with respect to which such Participant has made a deferral election, as provided in Section 3.1 hereof.
 1.10    “Excess Amount” shall mean, for a particular Plan Year, the amount by which the allocation(s) of a Participant under the Retirement Plans that are attributable to such Plan Year are reduced by reason of the application of the limitations set forth in Section 415 of the Code.
 1.11    “Mandatory Retirement Age” shall, with respect to each Southwest Airlines Co. pilot, mean the mandatory retirement age for commercial airline pilots, if any, imposed by the Federal Aviation Administration or applicable law.
 1.12    “Participant” shall mean an employee of the Company who has met the eligibility requirements for participation in this Plan, as set forth in Article II hereof, and who has made a deferral election under the Plan, as provided in Section 3.1 hereof.
 1.13    “Plan” shall mean the Amended and Restated Southwest Airlines Co. 2005 Excess Benefit Plan, as set forth in this document. 
 1.14    “Plan Year” shall mean the annual period beginning on January 1 and ending on December 31, both dates inclusive of each year.
 1.15    “Prior Plan” shall mean the Southwest Airlines Co. 2005 Excess Benefit Plan, as amended and restated effective January 1, 2008, and the Southwest Airlines Co. 2005 Excess Benefit Plan, effective for Plan Years commencing on and after January 1, 2004.
 1.16    “Retirement Plans” shall mean the Southwest Airlines Co. ProfitSharing Plan (the “ProfitSharing Plan”), the Southwest Airlines Co. 401(k) Plan, and the Southwest Airlines Co. Pilots Retirement Savings Plan, each as amended from time to time. 
 1.17    “Separation from Service” shall mean a reasonably anticipated permanent reduction in the level of bona fide services performed by the Participant for the Company and all Affiliates to 20% or less of the average level of bona fide services performed by the Participant for the Company and all Affiliates (whether as an employee or an independent contractor) over the immediately preceding thirty-six (36) months (or the full period of service to the Company and all Affiliates if less than thirty-six (36) months). The determination of whether a Separation from Service has occurred shall be made by the Committee in accordance with the provisions of Section 409A of the Code.  

2

 1.18    “Specified Employee” shall mean a key employee, as defined in Section 416(i) of the Code, without regard to paragraph (5) thereof, of the Company, as contemplated in Section 409A of the Code.
 1.19    “Spouse” shall mean a person who qualifies as the Participant’s spouse for purposes of federal tax law.
 1.20    “Trust Agreement” shall mean the agreement, if any, including any amendments thereto, entered into between the Company and the Trustee to carry out the provisions of the Plan.
 1.21    “Trust Fund” shall mean the cash and other properties held and administered by the Trustee pursuant to the Trust Agreement.
 1.22    “Trustee” shall mean the designated trustee acting at any time under the Trust Agreement.
 1.23    “Valuation Date” shall mean each business day on which the financial markets are open for trading activity, or such other dates as shall be established by the Committee.
ARTICLE II
ELIGIBILITY

 Prior to the end of each Plan Year, the Committee shall, in a timely manner, notify those individuals whom it has determined may have an Excess Amount for the following Plan Year (an “Eligible Plan Year”) that equals or exceeds $1,000, which individuals shall constitute a select group of highly compensated employees of the Company. Such individuals may elect to participate hereunder with respect to an Eligible Plan Year, in the manner prescribed by the Committee.  The determination as to the eligibility of any individual to participate in the Plan or to continue to participate shall be in the sole and absolute discretion of the Committee, whose decision in that regard shall be conclusive and binding for all purposes hereunder. 
ARTICLE III
CREDITS TO ACCOUNT

  3.1    Effective January 1, 2005, and continuing for each Plan Year thereafter, each individual who has been notified of his or her eligibility to participate in the Plan with respect to an Eligible Plan Year may, in the manner prescribed by the Committee, irrevocably elect a Deferral Amount, provided that such election must be made no later than the last day of December immediately preceding such Eligible Plan Year and prior to such earlier date as may be established by the Committee and communicated to the eligible individuals.  Each deferral election with respect to an Eligible Plan Year shall be contingent on a minimum Excess Amount of $1,000 and such deferral election shall not be effective if the Participant’s Excess Amount for that Eligible Plan Year is less than $1,000.  Subject to the preceding sentence, a Participant’s deferral election under this Section 3.1 shall be effective with respect to all subsequent Eligible Plan Years for which such Participant is eligible to make a deferral election, unless prior to the beginning of an Eligible Plan Year, the Participant affirmatively changes such election in the manner prescribed by the Committee.

3

 3.2    As soon as practicable following the date on which the Company funds its contribution, if any, for an Eligible Plan Year to the ProfitSharing Plan, the Company shall credit  a Participant’s Deferral Amount, if any, to the Account of such Participant.  Notwithstanding the preceding sentence, if such Participant is not actively employed on the date on which such ProfitSharing contribution is funded or in the event that the Participant’s Excess Amount for such Eligible Plan Year is less than $1,000, such Excess Amount will be paid to the Participant in a cash lump sum during the calendar year immediately following the Eligible Plan Year.
 3.3    As of each Valuation Date, the Committee shall credit to each Participant’s Account the deemed income or losses attributable thereto, as provided in Section 3.4 below, as well as any other credits to or charges against such Account, including such Participant’s pro rata portion of Plan administrative expenses.  All payments from an Account between Valuation Dates shall be charged against the Account as of the preceding Valuation Date.
 3.4    Each Participant, prior to initial participation in the Plan, may, in the manner prescribed by the Committee, designate the manner in which amounts credited to such Participant’s Account, as provided above, shall be deemed to be invested among the various options designated by the Committee for this purpose; provided however, that any such designation in effect under the Prior Plan on December 31, 2004 shall automatically carry over and apply to this Plan effective January 1, 2005 until changed by the Participant. A Participant may change the investment designation as of any Valuation Date solely with respect to amounts credited to such Participant’s Account after the date of such change, which change shall be effected by filing an election with the Committee, in the manner prescribed by the Committee, within the period of time prior to such Valuation Date established by the Committee.  The Participant must designate, in such minimum percentages or amounts as may be prescribed by the Committee, that portion of the amount to be credited to the Account of such Participant that is to be allocated to each investment option offered hereunder.  In the absence of any such investment designation, amounts credited to a Participant’s Account shall be deemed to be invested in such property as the Committee, in its sole and absolute discretion, shall determine.  In no event may any Participant designate the investment of amounts credited to an Account in stock or other securities of the Company.  The Committee may, but shall not be obligated to, invest amounts credited to a Participant’s Account in accordance with the investment designations of such Participant; nevertheless, the Account of such Participant shall be credited with the amount of income, gains and losses attributable thereto, as if the amounts credited to such Account had been so invested.  The Committee shall be authorized at any time and from time to time to modify, alter, delete or add to the investment options hereunder.  In the event a modification occurs, the Committee shall, prior to the effective date of such change, notify those Participants whom the Committee, in its sole and absolute discretion, determines are affected by the change.  The Committee shall not be obligated to substitute options with similar investment criteria for existing options, nor shall it be obligated to continue the types of investment options presently available to the Participants.
ARTICLE IV
ENTITLEMENT TO BENEFITS

Except as otherwise provided herein, each Participant (or, in the case of death, the Beneficiary of such Participant) shall be entitled to receive benefits hereunder upon (i) such Participant’s 

4

Separation from Service, (ii) such Participant’s attainment of Mandatory Retirement Age, (iii) such Participant’s death, or (iv) the occurrence of an unforeseeable emergency (subject to the Committee’s approval of a request pursuant to Article VI below). The time and form of the payment of benefits to a Participant in the event of Separation from Service, attainment of Mandatory Retirement Age, or death will be in accordance with the provisions of Article V below. Any payment of benefits to a Participant upon the occurrence of an unforeseeable emergency will be in accordance with the provisions of Article VI below. 
Each Participant or, in the case of the death of a Participant, the Beneficiary of such Participant shall be entitled to the entire value of all amounts credited to such Participant’s Account, as of the Valuation Date coincident with the date of distribution hereunder.
ARTICLE V 
PAYMENT OF BENEFITS.  
 5.1    Time of Payment. A Participant may elect to receive or commence receiving payment of his or her Account at one of the following times: 
(a)    during the calendar year in which the Participant’s Separation from Service occurs; 
(b)    during the calendar year following the calendar year in which the Participant’s Separation from Service occurs; 
(c)    during the calendar year in which the Participant attains Mandatory Retirement Age if Mandatory Retirement Age occurs earlier than the Participant’s Separation from Service and, if not, during the calendar year in which the Participant’s Separation from Service occurs; or
(d)    during the calendar year following the calendar year in which the Participant attains Mandatory Retirement Age if Mandatory Retirement Age occurs earlier than the Participant’s Separation from Service and, if not, during the calendar year following the calendar year in which the Participant’s Separation from Service occurs. 
Notwithstanding a Participant’s election, if a Participant has elected to receive payment based on a Separation from Service and such Participant is a Specified Employee at the time of his or her Separation from Service, such Participant’s distribution will be delayed until the date that is six months following his or her Separation from Service, to the extent required by Section 409A of the Code. In addition, notwithstanding a Participant’s election, in the event of a Participant’s death, payment will be made during the calendar year of the Participant’s death or, if later, within the ninety (90) day period following the date of the Participant’s death.  
 5.2    Form of Payment. A Participant may elect to receive payment of his or her Account in either a lump sum in cash or in substantially equal annual cash installments over a period certain not exceeding five (5) years.  In the event a Participant who has elected to receive cash installments is subject to a six-month delay in accordance with Section 5.1 above, such Participant’s first payment will include all installment payments that would otherwise have become due during the period of 

5

delay. If a Participant elects to receive installment payments, the Committee shall continue to credit the unpaid balance of the Participant’s Account with the deemed income and losses attributable thereto, in accordance with the provisions of Section 3.4 above, as well as with any other credits to or charges against the unpaid balance of such Account, during the period for which installment payments are made. Notwithstanding a Participant’s election, (i) in the event of the Participant’s death, payment will be made in a lump sum in cash; and (ii) a Participant who has elected installment payments will receive a lump sum distribution in cash at such time as the value of the Participant’s Account is $25,000 or less.
 5.3    Timing of Elections as to Time and Form of Payment. A Participant must elect the time and form of payment of his or her Account prior to the beginning of the Plan Year with respect to which the Participant first makes his or her initial deferral election under the Plan. Such election must be made in the manner prescribed by the Committee. Such election will be irrevocable and will apply to the Participant’s entire Account balance; provided, however, that prior to January 1, 2009, each Participant will be provided the opportunity to make a new, single election as to the time and form of payment of all amounts previously credited to his or her Account, as well as amounts yet to be deferred and credited (the “2009 Election”); and provided further, however, that a 2009 Election may not delay any payments a Participant would otherwise have received during the 2008 calendar year and may not accelerate into 2008 any payments a Participant would not have otherwise received in 2008.
 5.4    Default Elections. If a new Participant in the Plan fails to elect a time or form of payment in accordance with the requirements of Sections 5.1 through 5.3 above, the Participant (or, if applicable, the Participant’s Beneficiary) will receive his or her payment in a lump sum in cash during the calendar year following the calendar year in which the Participant’s Separation from Service occurs or, in the event of the Participant’s death, during the calendar year of the Participant’s death or, if later,  within the ninety (90) day period following the Participant’s death. If a Participant who has made an election under the Prior Plan fails to make a 2009 Election, such Participant’s prior election will continue to apply with respect to the following: (i) whether payment will be triggered based on his or her Separation from Service or attainment of Mandatory Retirement Age; (ii) whether payment will be made or commence during the calendar year of or following his or her Separation from Service or attainment of Mandatory Retirement Age, as applicable; and (iii) whether payment will be made in a lump sum or in installments; however, all other provisions of this Plan that govern time and form of payment will apply to such prior election, and any reference to “termination of employment” in a Participant’s prior election shall be deemed to mean Separation from Service. 
 5.5    Change in Time of Payments.  Notwithstanding any provision of this Article V to the contrary, the benefits payable hereunder may, to the extent expressly provided in this Section 5.5, be paid prior to or later than the date on which they would otherwise be paid to the Participant.
(a)    Distribution in the Event of Income Inclusion Under Code Section 409A.  If any portion of a Participant’s Account is required to be included in income by the Participant prior to receipt due to a failure of this Plan or any Aggregated Plan to comply with the requirements of Code Section 409A, the Committee may determine that such Participant 

6

shall receive a distribution from the Plan in an amount equal to the lesser of: (i) the portion of his or her Account required to be included in income as a result of the failure of the Plan or any Aggregated Plan to comply with the requirements of Code Section 409A, or (ii) the balance of the Participant’s Account.
(b)    Distribution Necessary to Satisfy Applicable Tax Withholding.  If the Company is required to withhold amounts to pay the Participant’s portion of the Federal Insurance Contributions Act (FICA) tax imposed under Code Sections 3101, 3121(a) or 3121(v)(2) with respect to amounts that are or will be paid to the Participant under the Plan before they otherwise would be paid, the Committee may determine that such Participant shall receive a distribution from the Plan in an amount equal to the lesser of:  (i) the amount in the Participant’s Account or (ii) the aggregate of the FICA taxes imposed and the income tax withholding related to such amount.
(c)    Delay for Payments in Violation of Federal Securities Laws or Other Applicable Law.  In the event the Company reasonably anticipates that the payment of benefits as specified hereunder would violate Federal securities laws or other applicable law, the Committee may delay the payment under this Article V until the earliest date at which the Company reasonably anticipates that the making of such payment would not cause such violation.  
(d)    Delay for Insolvency or Compelling Business Reasons.  In the event the Company determines that the making of any payment of benefits on the date specified hereunder would jeopardize the ability of the Company to continue as a going concern, the Committee may delay the payment of benefits under this Article V until the first calendar year in which the Company notifies the Committee that the payment of benefits would not have such effect.
(e)    Administrative Delay in Payment.  The payment of benefits hereunder shall begin at the date specified in accordance with the provisions of the foregoing paragraphs of this Article V; provided that, in the case of administrative necessity, the payment of such benefits may be delayed up to the later of the last day of the calendar year in which payment would otherwise be made or the 15th day of the third calendar month following the date on which payment would otherwise be made.  Further, if, as a result of events beyond the control of the Participant (or following the Participant’s death, the Participant’s Beneficiary), it is not administratively practicable for the Committee to calculate the amount of benefits due to Participant as of the date on which payment would otherwise be made, the payment may be delayed until the first calendar year in which calculation of the amount is administratively practicable.  
(f)    No Participant Election.  Notwithstanding the foregoing provisions, if the period during which payment of benefits hereunder will be made occurs, or will occur, in two calendar years, the Participant shall not be permitted to elect the calendar year in which the payment shall be made.

7

ARTICLE VI 
IN-SERVICE WITHDRAWALS AND LOANS
 6.1    In the event of an unforeseeable emergency, a Participant may make a request to the Committee for a withdrawal from his or her Account.  For purposes of this Section, the term “unforeseeable emergency” shall mean a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant’s Spouse, or a dependent (as defined in Section 152(a) of the Code, without regard to Sections 152(b)(1), (b)(2), and (d)(1)(B) of the Code) of the Participant, loss of the Participant’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance, as in the case of a natural disaster), or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.  Any determination of the existence of an unforeseeable emergency and the amount to be withdrawn on account thereof shall be made by the Committee, in its sole and absolute discretion.  However, the amount to be withdrawn on account of an unforeseeable emergency may not exceed the amounts necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved: (i) through reimbursement or compensation by insurance or otherwise; (ii) by liquidation of the Participant’s assets, to the extent that liquidation of such assets would not itself cause severe financial hardship; or (iii) by cessation of deferrals under this Plan.  In no event shall the need to send a Participant’s child to college or the desire to purchase a home be deemed to constitute an unforeseeable emergency.  No member of the Committee shall vote or decide upon any matter relating to the determination of the existence of such member’s own financial hardship. A request for a withdrawal on account of an unforeseeable emergency must be made in the manner prescribed by the Committee, and must be expressed as a specific dollar amount. All hardship withdrawals shall be paid in a lump sum in cash.
 6.2    Withdrawals shall be charged pro rata to the individual investment options in which amounts credited to a Participant’s Account are deemed to be invested, pursuant to such Participant’s designation under Section 3.4 hereof.
 6.3    In no event may a Participant receive a loan of any portion of his benefit hereunder.
ARTICLE VII 
ADMINISTRATION OF THE PLAN
 7.1    The Committee may establish a Trust Fund for the purposes of retaining assets set aside by the Company pursuant to the Trust Agreement for payment of all or a portion of the benefits payable pursuant to the Plan.  Any benefits not paid from a Trust shall be paid from the Company’s general assets.  The Trust Fund, if such shall be established, shall be subject to the claims of general creditors of the Company in the event the Company is Insolvent, as such term is defined in the Trust Agreement.
 7.2    The Plan shall be administered by the Committee.  The members of the Committee shall not receive compensation with respect to their services for the Committee.  The members of the Committee shall serve without bond or security for the performance of their duties hereunder unless applicable law makes the furnishing of such bond or security mandatory or unless required 

8

by the Company.  Any member of the Committee may resign by delivering a written resignation to the Company and to the other members of the Committee.
 7.3     The Committee shall perform any act that the Plan authorizes expressed by a vote at a meeting or in a writing signed by a majority of its members without a meeting.  The Committee may, by a writing signed by a majority of its members, appoint any member of the Committee to act on behalf of the Committee.  Any person who is a member of the Committee shall not vote or decide upon any matter relating solely to such member or vote in any case in which the individual right or claim of such member to any benefit under the Plan is particularly involved.  If, in any matter or case in which a person is so disqualified to act, the remaining persons constituting the Committee cannot resolve such matter or case, the Board will appoint a temporary substitute to exercise all the powers of the disqualified person concerning the matter or case in which such person is disqualified.
 7.4    The Committee may designate in writing other persons to carry out its responsibilities under the Plan, and may remove any person designated to carry out its responsibilities under the Plan by notice in writing to that person. The Committee may employ persons to render advice with regard to any of its responsibilities. All usual and reasonable expenses of the Committee shall be paid by the Company.  The Company shall indemnify and hold harmless each member of the Committee from and against any and all claims and expenses (including, without limitation, attorneys’ fees and related costs), in connection with the performance by such member of duties in that capacity, other than any of the foregoing arising in connection with the willful neglect or willful misconduct of the person so acting.
 7.5    The Committee shall establish rules and procedures, not contrary to the provisions of the Plan, for the administration of the Plan and the transaction of its business. The Committee shall determine the eligibility of any individual to participate in the Plan, shall interpret the Plan in its sole and absolute discretion, and shall determine all questions arising in the administration, interpretation and application of the Plan. All determinations of the Committee shall be conclusive and binding on all employees, Participants and Beneficiaries, subject to the provisions of this Plan and applicable law.
 7.6    Any action to be taken hereunder by the Company shall be taken by resolution adopted by the Board or by a committee thereof; provided, however, that by resolution, the Board or a committee thereof may delegate to any officer of the Company the authority to take any such actions hereunder, other than the power to amend or terminate the Plan.
ARTICLE VIII 
CLAIMS REVIEW PROCEDURE
 8.1    In the event that a Participant or Beneficiary (the “Claimant”) is denied a claim for benefits under this Plan, the Committee will, within a reasonable period of time, but not later than ninety (90) days after its receipt of the claim, provide the Claimant a written statement, which shall be delivered or mailed to the Claimant by certified or registered mail to his or her last known address, and which will contain the following:

9

(a)    the specific reason or reasons for the denial of benefits;
(b)    a specific reference to the pertinent provisions of the Plan upon which the denial is based; 
(c)    a description of any additional material or information that is necessary for the Claimant to perfect the claim and an explanation of why such material or information is necessary; and
(d)    an explanation of the review procedures and the time limits applicable to such procedures, as provided below, including a statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on review. 
 In the event that the Committee determines that an extension is necessary due to matters beyond the control of the Plan, the Committee will provide the Claimant with the written statement described above not later than one hundred eighty (180) days after receipt of the Claimant’s claim, but, in that event, the Committee will furnish the Claimant, within ninety (90) days after its receipt of the claim, written notification of the extension explaining the special circumstances requiring the extension and the date by which the Committee expects to render a decision.
 8.2    Within sixty (60) days after receipt of a notice of a denial of benefits as provided above, if the Claimant disagrees with the denial of benefits, the Claimant or his or her authorized representative may request, in writing, that the Committee review the Claimant’s claim and may request to appear before the Committee for the review. The Claimant will be given the opportunity to submit written comments, documents, records, and other information relating to the claim for benefits.  The Claimant will be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the Claimant’s claim for benefits, as provided in Department of Labor regulations.  In conducting its review, the Committee will consider all comments, documents, records, and other information relating to the claim submitted by the Claimant or his or her authorized representative, whether or not such information was submitted or considered in the initial benefit determination. 
 8.3    Within a reasonable period of time, but not later than sixty (60) days after receipt by the Committee of a written application for review of the Claimant’s claim, the Committee will notify the Claimant of its decision on review by delivery or by certified or registered mail to the Claimant’s last known address; provided, however, in the event that special circumstances require an extension of time for processing such application, the Committee will so notify the Claimant of its decision not later than one hundred twenty (120) days after receipt of such application, but, in that event, the Committee will furnish the Claimant, within sixty (60) days after its receipt of such application, written notification of the extension explaining the special circumstances requiring the extension and the date that it is anticipated that its decision will be furnished. The decision of the Committee will be in writing and will include the specific reasons for the decision presented in a manner calculated to be understood by the Claimant and will contain reference to all relevant Plan provisions on which the decision was based, as well as a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, 

10

and other information relevant to the Claimant’s claim for benefits, and a statement of the Claimant’s right to bring an action under Section 502(a) of the Employee Retirement Income Security Act of 1974.  The decision of the Committee will be final and conclusive.
ARTICLE IX
LIMITATION OF RIGHTS

The establishment of this Plan shall not be construed as giving to any Participant, employee of the Company or any person whomsoever, any legal, equitable or other rights against the Company, or its officers, directors, agents or shareholders, or as giving to any Participant or Beneficiary any equity or other interest in the assets or business of the Company or shares of Company stock or as giving any employee the right to be retained in the employment of the Company.  All employees of the Company and Participants shall be subject to discharge to the same extent they would have been if this Plan had never been adopted.  The rights of a Participant hereunder shall be solely those of an unsecured general creditor of the Company.
ARTICLE X 
LIMITATION OF ASSIGNMENT AND PAYMENTS TO 
LEGALLY INCOMPETENT DISTRIBUTEE
 10.1    No benefits which shall be payable under the Plan to any person shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge or otherwise dispose of the same shall be void. No benefit shall in any manner be subject to the debts, contracts, liabilities, engagements or torts of any person, nor shall it be subject to attachment or legal process for or against any person, except to the extent required by law.
 10.2     Whenever any benefit which shall be payable under the Plan is to be paid to or for the benefit of any person who is then a minor or determined by the Committee, on the basis of qualified medical advice, to be incompetent, the Committee need not require the appointment of a guardian or custodian, but shall be authorized to cause the same to be paid over to the person having custody of the minor or incompetent, or to cause the same to be paid to the minor or incompetent without the intervention of a guardian or custodian, or to cause the same to be paid to a legal guardian or custodian of the minor or incompetent, if one has been appointed, or to cause the same to be used for the benefit of the minor or incompetent.
ARTICLE XI 
AMENDMENT TO OR TERMINATION OF THE PLAN
 11.1    Amendment and Termination.  The Company reserves the right at any time to amend or terminate the Plan in whole or in part by resolution of the Board.  No amendment shall have the effect of retroactively changing or depriving Participants or Beneficiaries of rights already accrued under the Plan.  
 11.2    Effect of Termination.  If the Plan is terminated, all deferrals shall thereupon cease, but deemed income or losses shall continue to be credited to the Deferral Accounts in accordance 

11

with Section 3.3 hereof.  Notwithstanding the foregoing, to the extent provided by the Company, the Plan may be liquidated following a termination under any of the following circumstances:
(a)    the termination and liquidation of the Plan within twelve (12)  months of a complete dissolution of the Company taxed under Section 331 of the Code or with the approval of a bankruptcy court pursuant to 11 U.S.C. § 503(b)(1)(A); provided that the amounts deferred under this Plan are included in the Participants’ gross incomes in the latest of the following years (or, if earlier, the taxable year in which the amount is actually or constructively received): (i) the calendar year in which the Plan is terminated; (ii) the first calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year in which the payment is administratively practicable.  
(b)    the termination and liquidation of the Plan pursuant to irrevocable action taken by the Company within the thirty (30) days preceding or the twelve (12) months following a change of control within the meaning of Section 409A of the Code; provided that all Aggregated Plans are terminated and liquidated with respect to each Participant that experienced such change of control, so that under the terms of the termination and liquidation, all such Participants are required to receive all amounts of deferred compensation under this Plan and any other Aggregated Plans within twelve (12) months of the date the Company irrevocably takes all necessary action to terminate and liquidate this Plan and such other Aggregated Plans;
(c)    the termination and liquidation of the Plan, provided that: (i) the termination and liquidation does not occur proximate to a downturn in the Company’s financial health; (2) the Company terminates and liquidates all Aggregated Plans; (3) no payments in liquidation of this Plan are made within twelve (12) months of the date the Company irrevocably takes all necessary action to terminate and liquidate this Plan, other than payments that would be payable under the terms of this Plan if the action to terminate and liquidate this Plan had not occurred; (4) all payments are made within twenty four (24) months of the date on which the Company irrevocably takes all action necessary to terminate and liquidate this Plan; and (5) the Company does not adopt a new Aggregated Plan at any time within three (3) years following the date on which the Company irrevocably takes all action necessary to terminate and liquidate the Plan.
ARTICLE XII 
STATUS OF PARTICIPANT AS UNSECURED CREDITOR
All benefits under the Plan shall be the unsecured obligations of the Company and, except for those assets that may be placed in a Trust Fund established in connection with this Plan, no assets will be placed in trust or otherwise segregated from the general assets of the Company for the payment of obligations hereunder.  To the extent that any person acquires a right to receive payments hereunder, such right shall be no greater than the right of any unsecured general creditor of the Company.
ARTICLE XIII 
GENERAL AND MISCELLANEOUS

12

 13.1    Severabilitv. In the event that any provision of this Plan shall be declared illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining provisions of this Plan but shall be fully severable, and this Plan shall be construed and enforced as if said illegal or invalid provision had never been inserted herein.
 13.2    Construction. The Section headings and numbers are included only for convenience of reference and are not to be taken as limiting or extending the meaning of any of the terms and provisions of this Plan.  Whenever appropriate, words used in the singular shall include the plural or the plural may be read as the singular.
 13.3    Governing Law.  The validity and effect of this Plan and the rights and obligations of all persons affected hereby shall be construed and determined in accordance with the laws of the State of Texas unless superseded by federal law.
 13.4    No Requirement to Fund.  The Company is not required to set aside any assets for payment of the benefits provided under this Plan; however, it may do so as provided in the Trust Agreement, if any. A Participant shall have no security interest in any such amounts. It is the Company’s intention that this Plan be construed as a plan that is unfunded and maintained primarily for the purpose of providing deferred compensation for a select group of highly compensated employees.
 13.5    Indemnification.  To the extent permitted by applicable law, the Company shall indemnify and hold harmless the members of the Committee from and against any and all liabilities, costs and expenses incurred by such persons as a result of any act, or omission to act, in connection with the performance of such person’s duties, responsibilities and obligations under the Plan, other than such liabilities, costs and expenses as may result from the gross negligence, willful misconduct, and/or criminal acts of such persons.
 13.6    Taxes. All amounts credited and payable hereunder shall be reduced by any and all federal, state and local taxes imposed upon the Participant or a Beneficiary that are required to be paid or withheld by the Company.
 13.7    USERRA. Notwithstanding any provision of this Plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided to the extent necessary to comply with the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).

13

IN WITNESS WHEREOF, Southwest Airlines Co., the Company, has caused these presents to be duly executed in its name and behalf by its proper officers thereunto duly authorized this 18th day of September, 2014.

	
			
	 
	SOUTHWEST AIRLINES CO.

	 
	 
	 

	 
	By:
	/s/ Gary C. Kelly

	 
	Name:
	Gary C. Kelly

	 
	Its:
	President & Chief Executive Officer

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}]]