Document:

ex10_1.htm

	
Supplemental Agreement No. 78

	  
	
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, entered into as of  August 7   , 2012, 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 (737-7H4 Aircraft) and 737-8H4 aircraft (737-8H4 Aircraft); and this Supplemental Agreement is an amendment to and is incorporated into the Purchase Agreement:

WHEREAS, Buyer and Boeing agree to accelerate the delivery month of one (1) 737-8H4 Aircraft bearing Manufacturing Serial Number 36891 from January 2013 to December 2012 (Accelerated Aircraft).

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 1b, “Aircraft Information Table – Block 800LUV Aircraft,” is deleted in its entirety and a new Table 1b is attached hereto and incorporated into the Purchase Agreement by this reference.  The new Table 1b reflects the revised delivery month for the Accelerated Aircraft.

3. Letter Agreement SWA-PA-1810-LA-1105888, *** is deleted in its entirety and replaced with a revised Letter Agreement No. SWA-PA-1810-LA-1105888R1, attached hereto and incorporated in the Purchase 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-78-1

  

  

  

4. As a result of the execution of this Supplemental Agreement, there is an excess in Advance Payments made by Buyer to Boeing in the amount of ***.   Boeing will retain such excess amount until the next Advance Payment is due, at which time Buyer may reduce the amount of such Advance Payment by the amount of such excess.

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/ Cheri A. Fischer

	  	
By: /s/ Laura Wright

	  	  	  
	
Its: Attorney-In-Fact

	  	
Its:  Sr VP Finance & CFO

 

 

 

	
P.A. No. 1810

	
SA-78-2

  

  

  

	
TABLE OF CONTENTS

	  	  	
Page

	
SA

	  	  	
Number

	
Number

                           ARTICLES

	
1.

	
Subject Matter of Sale

	
1-1

	
SA-75

	  	  	  	  
	
2.

	
Delivery, Title and Risk

of Loss

	
 

2-1

	
 

SA-28

	  	  	  	  
	
3.

	
Price of Aircraft

	
3-1

	
SA-75

	  	  	  	  
	
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

	
SA-78

	
K/SWA

	  	  

 

  

  

  

                    

	
TABLE OF CONTENTS

	  	
        SA

Number

 

                           TABLE

 

	
1. 

	
Aircraft Information Table

	
SA-75

	1a	Aircraft Information Table - Block 700LUV Aircraft   	SA-77
	
1b

	
Aircraft Information Table - Block 800LUV Aircraft

	
SA-78      

 

	
                                    EXHIBITS

	
 

 

	
A-4

	
Aircraft Configuration- 737-700 Block T-W-2b Aircraft

	
SA-66

	 	  	 
	
A-5

	
Aircraft Configuration - Block 700LUV Aircraft

	
SA-75    

	
 

	 	
 

	A-6	Aircraft Configuration - Block 700LUV Aircraft   	SA-75
	
 

	 	
  

	
B 

	
***

	
SA-75

	 	   	 
	
C

	
Customer Support Document   

	
    

	
 

	 	
 

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

	 	
    

	
D 

	
Price Adjustment Due to

Economic Fluctuations - Aircraft Price Adjustment

(July 1992 Base Price)

	
 

	 	  	 
	
D-1

	

Price Adjustment Due to 

Economic Fluctuations - Aircraft Price Adjustment

(July 1999 Base Price)

	
SA-13

	
 

	 	
 

	D-2	
Economic Price Adjustment

ECI-MFG/CPI (July 2011 Base Price) 

	SA-75
	
 

	 	
   

	
E

	
Buyer Furnished Equipment

Provisions Document

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

Attachment B - 737-8H4 Aircraft (2012-2018)

	
SA-75

 

 

SA-77

	 	 	 
	
F

	
Defined Terms Document

	
 

 

                                   LETTER AGREEMENTS

 

	
1810-1R1

	
Waiver of Aircraft Demonstration Flight

	
SA-75

 

 

 

	
P.A. No. 1810

	
ii

	
SA-78

	
K/SWA

	  	  

 

 

  

	
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-NIW-890R1

	
***

	
SA-75

 

 

 

SA-39

	  	  	  
	
6-1162-RLL-941R3

	
Other Matters

	
SA-75

	  	  	  
	
6-1162-KJJ-054R2

	
Business Matters

	
SA-75

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

	  	  	  
	
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-JMG-669R9

	
***

	
SA-75

	  	  
	  	  	
SA-75

	  	  	
SA-54

	  
	
SWA-PA-1810-LA-1001315R1

	
***

	
SA-75

	  	
Attachment A

	
SA-77

	  	  	  
	
SWA-PA-1810-LA-02710

	
***

	
SA-72

 

	  	  	  
	
SWA-PA-1810-LA-1003498 R1

	
***

	
SA-75

	  	  	  
	
SWA-PA-1810-LA-1003490R1

	
***

	
SA-75

	  	  	  
	
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  – Option Aircraft Information Table

 

 

	
P.A. No. 1810

	
iii

	
SA-78

	
K/SWA

	  	  

  

  

 

  

	
TABLE OF CONTENTS

	  	
        SA

Number

 

	
SWA-PA-1810-LA-1105885

	
***

	
SA-75

	  	  	  
	
SWA-PA-1810-LA-1105886

	
***

	
SA-75

	  	  	  
	  	  	  
	
SWA-PA-1810-LA-1105887

	
***

	
SA-75

	  	  	  
	  	  	  
	
SWA-PA-1810-LA-1105888

	
***

	
SA-78

	  	  	  
	
SWA-PA-1810-LA-1105889

	
***

	
SA-75

	
  

	 

	
ADDITIONAL LETTERS (FOR REFERENCE)

	
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

	
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

 

	
P.A. No. 1810

	
iv

	
SA-78

	
K/SWA

	  	  

  

  

  

  

	
TABLE OF CONTENTS

	
Exhibits

	
Title

	
Last Updated

Under SA

	
Current Status

	
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

	
C.2

	
737-800 Customer Support Variables

	
SA-71

	
Deleted under SA-75

	
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

	
6-1162-RLL-2037

	
Reconciliation of the Aircraft Basic Price

	
SA-1

	
Inactive

 

 

	
P.A. No. 1810

	
v

	
SA-78

	
K/SWA

	  	  

   

  

  

 

	
TABLE OF CONTENTS

	
Letter Agreement

	
Title

	
Last Updated

Under SA

	
Current Status

	
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

	
P.A. No. 1810

	
vi

	
SA-78

	
K/SWA

	  	  

 

  

  

  

	
Table 1b to

	
Purchase Agreement No. PA-01810

	
Aircraft Delivery, Description, Price and Advance Payments

	
Block 800LUV Aircraft

	
Airframe Model/MTOW:

	
737-800

	
174200 pounds

	  	
Detail Specification:

	
        D019A001SWA38P-1 Rev New

	  	  	  	  	  	  
	
Engine Model/Thrust:

	
CFM56-7B26

	
26400 pounds

	  	
Airframe Base Aircraft Price Base Year/Escalation Formul

	
Jul-11

	
ECI-MFG/CPI

	
Base Aircraft Price:

	
***

	  	
Engine Price Base Year/Escalation Formula:

	
N/A    

	
         N/A

	  	  	  	  	  	  
	
Special Features:

	
***

	
Notes 1 & 2

	  	  	  
	  	  	  	  	  	  
	
Sub-Total of Aircraft  Base Price 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 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

***

	
Mar-2012

	
1

	
***

	
36980

	
Note 1 & 3

	
***

	
***

	
***

	
***

	
***

	
Mar-2012

	
1

	
***

	
36680

	
Note 2 & 3

	
***

	
***

	
***

	
***

	
***

	
Apr-2012

	
3

	
***

	
36681, 36983, 36683

	
Note 3

	
***

	
***

	
***

	
***

	
***

	
May-2012

	
3

	
***

	
36682, 36985, 36987

	
Note 3

	
***

	
***

	
***

	
***

	
***

	
Jun-2012

	
4

	
***

	
38807, 38808, 38809, 38810

	
Note 3

	
***

	
***

	
***

	
***

	
***

	
Jul-2012

	
3

	
***

	
36684, 36990, 38811

	
Note 3

	
***

	
***

	
***

	
***

	
***

	
Aug-2012

	
2

	
***

	
36685, 36992

	
Note 3

	
***

	
***

	
***

	
***

	
***

	
Sep-2012

	
2

	
***

	
36686, 36994

	
Note 3

	
***

	
***

	
***

	
***

	
***

	
Oct-2012

	
2

	
***

	
36687, 36997

	
Note 3

	
***

	
***

	
***

	
***

	
***

	
Nov-2012

	
4

	
***

	
37005, 37003, 35969, 35966

	
Note 3

	
***

	
***

	
***

	
***

	
***

	
Dec-2012

	
3

	
***

	
37006, 37009, 38818,

	
Note 3

	
***

	
***

	
***

	
***

	
***

	
Dec-2012

	
1

	
***

	
36891

	  	
***

	
***

	
***

	
***

	
***

	
Jan-2013

	
3

	
***

	
35964, 36638, 36634

	  	
***

	
***

	
***

	
***

	
***

	
Feb-2013

	
2

	
***

	
36635, 36893

	  	
***

	
***

	
***

	
***

	
***

	
Mar-2013

	
2

	
***

	
36892, 36973

	  	
***

	
***

	
***

	
***

	
***

	
Apr-2013

	
2

	
***

	
36908, 36998

	  	
***

	
***

	
***

	
***

	
***

	
Sep-2013

	
1

	
***

	
36933

	  	
***

	
***

	
***

	
***

	
***

	
Oct-2013

	
2

	
***

	
36912, 36914

	  	
***

	
***

	
***

	
***

	
***

	
Nov-2013

	
3

	
***

	
36915, 33939, 42526

	  	
***

	
***

	
            ***

	
                         ***

	
  ***

 

 

	
SWA-PA01810

	  	
Page 1 

	
57774, 57776, 57777, 60261-1F.TXT

	
                     Boeing Proprietary

	
SA-78

  

  

  

	
Table 1b to

	
Purchase Agreement No. PA-01810

	
Aircraft Delivery, Description, Price and Advance Payments

	
Block 800LUV Aircraft

	
Delivery

Date

	
Number of

Aircraft

	
Escalation Factor

(Airframe)

	
Aircraft

Serial

Number

	  	
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

***

	
Dec-2013

	
5

	
***

	
36917, 36919, 36731, 42529, 42530

	  	
***

	
***

	
***

	
***

	
***

	
Mar-2014

	
1

	
***

	
37004

	
Note 4

	
***

	
***

	
***

	
***

	
***

	
Apr-2014

	
4

	
***

	
42384, 36894, 36895, 36896

	
Note 4

	
***

	
***

	
***

	
***

	
***

	
May-2014

	
3

	
***

	
36897, 42385, 42521

	
Note 4

	
***

	
***

	
***

	
***

	
***

	
Jun-2014

	
3

	
***

	
36898, 36905, 42522

	
Note 4

	
***

	
***

	
***

	
***

	
***

	
Jul-2014

	
2

	
***

	
42523, 36911

	
Note 4

	
***

	
***

	
***

	
***

	
***

	
Aug-2014

	
4

	
***

	
36907, 42524,35973, 42525

	
Note 4

	
***

	
***

	
***

	
***

	
***

	
Sep-2014

	
4

	
***

	
36935, 42528, 42527, 42531

	
Note 4

	
***

	
***

	
***

	
***

	
***

	
Oct-2014

	
3

	
***

	
36909, 36732, 36920

	
Note 4

	
***

	
***

	
***

	
***

	
***

	
Total:

	
73

	  	  	  	  	  	  	  	  

Notes:

1)  ***

2)  ***

3)  ***

4) The Advance Payment Base Price is determined using the escalation factor from Boeing's 4th Qtr 2011 forecast.

	
SWA-PA01810

	  	
Page 2 

	
57774, 57776, 57777, 60261-1F.TXT

	
                        Boeing Proprietary

	
SA-78

  

  

  

	
BOEING

	
 

                        The Boeing Company

                        P.O. Box 3707

                        Seattle, WA  98124-2207

 

SWA-PA-1810-LA-1105888R1

Southwest Airlines Co.

2702 Love Field Drive

P.O. Box 36611

Dallas, Texas 75235

	
Subject:

	
***

	
Reference:

	
a)

	
Purchase Agreement No. 1810 (Purchase Agreement) between The Boeing Company (Boeing) and Southwest Airlines Co. (Buyer) relating to Model 737-7H4 and 737-8H4 aircraft

 

This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement.  All terms used but not defined in this Letter Agreement shall have the same meaning as in the Purchase Agreement.

 

              ***

 

1.           ***

 

 

 

	
SWA-PA-1810-LA-1105888R1 

	
Page  1

	
***

	
SA-78

	
BOEING PROPRIETARY

  

  

  

BOEING

 

 

 

2.   Termination of Agreements relating to Large Area Display System.  Boeing and Buyer hereby terminate all agreements relating to the installation of large area display systems on Buyer’s 737-300/-500 aircraft in Buyer’s fleet (LADS Project).  *** Boeing and Buyer hereby agree that neither party shall have any further obligations with respect to the LADS Project.

 

 

3.   ***

 

 

 

	
SWA-PA-1810-LA-1105888R1 

	
Page 2 

	
***

	
                        SA-78

	
BOEING PROPRIETARY

  

  

  

BOEING

 

	
*** Aircraft by MSN

	
36717

	
33943

	
34861

	
33925

	
33923

	
36724

	
36718

	
33917

	
33929

	
34479

	
36399

	
34862

	
33927

	
35110

	
33928

	
33918

	
35109

	
33930

	
35788

	
33931

	
36091

	
33921

	
33926

	
33922

	
33919

	
36725

	
33934

	
33933

	
33924

	
36716

 

4.   Assignment.

 

 

The business terms described in this Letter Agreement are provided *** in consideration of Buyer’s taking title to the Firm Aircraft and Option Aircraft at time of delivery and becoming the operator of the Firm Aircraft and Option Aircraft.  Under no circumstances will Buyer be permitted to assign the business terms set forth herein.

 

 

5.   Confidentiality

 

Buyer understands that certain commercial and financial information contained in this Letter Agreement is considered by Boeing as confidential and has value precisely because it is not available generally to other parties.  Buyer agrees to limit the disclosure of the contents of this Letter Agreement to (a) its directors and officers, (b) employees of Buyer with a need to know the contents for performing its obligations (including, without limitation, those employees performing accounting, finance, administration and other functions necessary to finance and purchase, deliver or lease the Aircraft) and who understand they are not to disclose its contents to any other person or entity (other than those to whom disclosure is permitted by this paragraph) without the prior written consent of Boeing and (c) any auditors and attorneys of Buyer who have a need to know such information and have signed a confidentiality agreement in the same form and substance similar to this paragraph, or are otherwise bound by a confidentiality obligation. Disclosure to other parties is not permitted without Boeing’s consent except as may be required by applicable law or governmental regulations. Buyer shall be fully responsible to Boeing for compliance with such obligations.

 

 

	
SWA-PA-1810-LA-1105888R1 

	
Page 3

	
***

	
SA-78

	
BOEING PROPRIETARY

  

  

  

BOEING

Very truly yours,

	
THE BOEING COMPANY

	  
	
By

	
/s/ Cheri A. Fischer

	  
	
Its

	
Attorney-In-Fact

	  
	
ACCEPTED AND AGREED TO this

	  
	
Date:

	
August 7,  2012

	  
	
SOUTHWEST AIRLINES CO.

	  
	
By

	
/s/ Laura Wright

	  	
Laura Wright

	  
	
Its

	
Sr VP Finance & CFO

 

 

	
SWA-PA-1810-LA-1105888R1 

	
Page  4

	
***

	
SA-78

	
BOEING PROPRIETARYex10_2.htm

	
Supplemental Agreement No. 79

	  
	
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, entered into as of September 18, 2012, 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 (737-7H4 Aircraft) and 737-8H4 aircraft (737-8H4 Aircraft); and this Supplemental Agreement is an amendment to and is incorporated into the Purchase Agreement:

WHEREAS, Boeing requested and Buyer agreed to accelerate delivery of one (1) 737-8H4 Aircraft bearing Manufacturing Serial Number 36687 from October 2012 to September 2012 (Subject Aircraft).

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 1b, “Aircraft Information Table – Block 800LUV Aircraft,” is deleted in its entirety and a new Table 1b is attached hereto and incorporated into the Purchase Agreement by this reference.  The new Table 1b reflects the revised delivery month for the Subject Aircraft.

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

 

 

	
P.A. No. 1810

	
SA-79-1

  

  

  

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/Cheri A. Fischer                                                      

	
By:           /s/ Laura Wright                                

	
Its:    Attorney-In-Fact                                                      

	
Its:      Sr VP Finance & CFO

	
P.A. No. 1810

	
SA-79-2

  

  

  

	
TABLE OF CONTENTS

	  	
  Page

Number

	
        SA

Number

	  

 

            ARTICLES

 

	
1.

	
Subject Matter of Sale

	
1-1

	
SA-75

	  	  	  	  
	
2.

	
Delivery, Title and Risk

of Loss

	
 

2-1

	
 

SA-28

	  	  	  	  
	
3.

	
Price of Aircraft

	
3-1

	
SA-75

	  	  	  	  
	
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-79

 

  

  

  

	
TABLE OF CONTENTS

	  	
         SA

Number

 

            TABLE

	
1.

	
Aircraft Information Table

	
SA-75

	
1a

	
Aircraft Information Table – Block 700LUV Aircraft

	
SA-77

	
1b

	
Aircraft Information Table – Block 800LUV Aircraft

	
SA-79

	
  

	
EXHIBITS

	
A-4

	
Aircraft Configuration - 737-700 Block T-W-2b Aircraft

	
SA-66

	  	  	  
	
A-5

	
Aircraft Configuration – Block 700LUV Aircraft

	
SA-75

	  	  	  
	
A-6

	
Aircraft Configuration – Block 800LUV Aircraft

	
SA-75

	  	  	  
	
B

	
***

	
SA-75

	  	  	  
	
C

	
Customer Support Document

	  
	  	  	  
	
C-2

	
737-800 Customer Support Document

	
SA-75

	  	  	  
	
D

	
Price Adjustment Due to

Economic Fluctuations – Aircraft Price Adjustment

(July 1992 Base Price)

	  
	  	  	  
	
D-1

	
Price Adjustment Due to

Economic Fluctuations – Aircraft Price Adjustment

(July 1999 Base Price)

	
SA-13

	  	  	  
	
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-77

	  	  	  
	
F

	
Defined Terms Document

	  

 

            LETTER AGREEMENTS

	
1810-1R1

	
Waiver of Aircraft Demonstration Flight

	
SA-75

	
P.A. No. 1810

	
ii

	  
	
K/SWA

	  	
SA-79

 

  

  

  

	
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-NIW-890R1

	
***

	
SA-75

	  	  	  
	  	  	  
	  	  	
SA-39

	  	  	  
	
6-1162-RLL-941R3

	
Other Matters

	
SA-75

	  	  	  
	
6-1162-KJJ-054R2

	
Business Matters

	
SA-75

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

	  	  	  
	
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-JMG-669R9

	
***

	
SA-75

	  	  
	  	  	
SA-75

	  	  	
SA-54

 

	
SWA-PA-1810-LA-1001315R1

	
***

	
SA-75

	  	
Attachment A

	
SA-77

	  	  	  
	
SWA-PA-1810-LA-02710

	
***

	
SA-72

	  	  	  
	  	  	  
	
SWA-PA-1810-LA-1003498 R1

	
***

	
SA-75

	  	  	  
	
SWA-PA-1810-LA-1003490R1

	
***

	
SA-75

	  	  	  
	
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  – Option Aircraft Information Table

	
P.A. No. 1810

	
iii

	  
	
K/SWA

	  	
SA-79

 

  

  

  

	
TABLE OF CONTENTS

	  	
        SA

Number

 

 

	  	  	  
	
SWA-PA-1810-LA-1105885

	
***

	
SA-75

	  	  	  
	
SWA-PA-1810-LA-1105886

	
***

	
SA-75

	  	  	  
	  	  	  
	
SWA-PA-1810-LA-1105887

	
***

	
SA-75

	  	  	  
	  	  	  
	
SWA-PA-1810-LA-1105888

	
***

	
SA-78

	  	  	  
	
SWA-PA-1810-LA-1105889

	
***

	
SA-75

 

	
ADDITIONAL LETTERS (FOR REFERENCE)

	
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

	
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

 

 

 iv 

	
TABLE OF CONTENTS

	  	
        SA

Number

 

	
Exhibits

	
Title

	
Last Updated under SA

	
Current Status

	
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

	
C.2

	
737-800 Customer Support Variables

	
SA-71

	
Deleted under SA-75

	
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

	
6-1162-RLL-2037

	
Reconciliation of the Aircraft Basic Price

	
SA-1

	
Inactive

	
P.A. No. 1810

	
v

	  
	
K/SWA

	  	
SA-79

 

  

  

  

	
TABLE OF CONTENTS

	  	
        SA

Number

 

	
Letter Agreement

	
Title

	
Last Updated under SA

	
Current Status

	
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

 

	
P.A. No. 1810

	
vi

	  
	
K/SWA

	  	
SA-79

 

  

  

  

	
Table 1b to

	
Purchase Agreement No. PA-01810

	
Aircraft Delivery, Description, Price and Advance Payments

	
Block 800LUV Aircraft

	
Airframe Model/MTOW:

	
737-800

	
174200 pounds

	  	
Detail Specification:

	
              D019A001SWA38P-1 Rev New

	  	  	  	  	  	  
	
Engine Model/Thrust:

	
CFM56-7B26

	
26400 pounds

	  	
Airframe Base Aircraft Price Base Year/Escalation Formul

	
Jul-11

	
ECI-MFG/CPI

	
Base Aircraft Price:

	
***

	  	
Engine Price Base Year/Escalation Formula:

	
N/A

	
N/A

	  	  	  	  	  	  
	
Special Features:

	
***

	
Notes 1 & 2

	  	  	  
	  	  	  	  	  	  
	
Sub-Total of Aircraft  Base Price 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 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

***

	
Mar-2012

	
1

	
***

	
36980

	
Note 1 & 3

	
***

	
***

	
***

	
***

	
***

	
Mar-2012

	
1

	
***

	
36680

	
Note 2 & 3

	
***

	
***

	
***

	
***

	
***

	
Apr-2012

	
3

	
***

	
36681, 36983, 36683

	
Note 3

	
***

	
***

	
***

	
***

	
***

	
May-2012

	
3

	
***

	
36682, 36985, 36987

	
Note 3

	
***

	
***

	
***

	
***

	
***

	
Jun-2012

	
4

	
***

	
38807, 38808, 38809, 38810

	
Note 3

	
***

	
***

	
***

	
***

	
***

	
Jul-2012

	
3

	
***

	
36684, 36990, 38811

	
Note 3

	
***

	
***

	
***

	
***

	
***

	
Aug-2012

	
2

	
***

	
36685, 36992

	
Note 3

	
***

	
***

	
***

	
***

	
***

	
Sep-2012

	
2

	
***

	
36686, 36994

	
Note 3

	
***

	
***

	
***

	
***

	
***

	
Sep- 2012

	
1

	
***

	
36687

	
Note 5

	
***

	
***

	
***

	
***

	
***

	
Oct-2012

	
1

	
***

	
36997

	
Note 3

	
***

	
***

	
***

	
***

	
***

	
Nov-2012

	
4

	
***

	
37005, 37003, 35969, 35966

	
Note 3

	
***

	
***

	
***

	
***

	
***

	
Dec-2012

	
3

	
***

	
37006, 37009, 38818,

	
Note 3

	
***

	
***

	
***

	
***

	
***

	
Dec-2012

	
1

	
***

	
36891

	  	
***

	
***

	
***

	
***

	
***

	
Jan-2013

	
3

	
***

	
35964, 36638, 36634

	  	
***

	
***

	
***

	
***

	
***

	
Feb-2013

	
2

	
***

	
36635, 36893

	  	
***

	
***

	
***

	
***

	
***

	
Mar-2013

	
2

	
***

	
36892, 36973

	  	
***

	
***

	
***

	
***

	
***

	
Apr-2013

	
2

	
***

	
36908, 36998

	  	
***

	
***

	
***

	
***

	
***

	
Sep-2013

	
1

	
***

	
36933

	  	
***

	
***

	
***

	
***

	
***

	
Oct-2013

	
2

	
***

	
36912, 36914

	  	
***

	
***

	
***

	
***

	
***

	
SWA-PA01810

	  	
Page 1 

	
57774, 57776, 57777, 60261-1F.TXT

	
Boeing Proprietary

	
SA-79

  

  

  

	
Table 1b to

	
Purchase Agreement No. PA-01810

	
Aircraft Delivery, Description, Price and Advance Payments

	
Block 800LUV Aircraft

	
Delivery

Date

	
Number of

Aircraft

	
Escalation Factor

(Airframe)

	
Aircraft

Serial

Number

	  	
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

***

	
Nov-2013

	
3

	
***

	
36915, 33939, 42526

	  	
***

	
***

	
***

	
***

	
***

	
Dec-2013

	
5

	
***

	
36917, 36919, 36731, 42529, 42530

	  	
***

	
***

	
***

	
***

	
***

	
Mar-2014

	
1

	
***

	
37004

	
Note 4

	
***

	
***

	
***

	
***

	
***

	
Apr-2014

	
4

	
***

	
42384, 36894, 36895, 36896

	
Note 4

	
***

	
***

	
***

	
***

	
***

	
May-2014

	
3

	
***

	
36897, 42385, 42521

	
Note 4

	
***

	
***

	
***

	
***

	
***

	
Jun-2014

	
3

	
***

	
36898, 36905, 42522

	
Note 4

	
***

	
***

	
***

	
***

	
***

	
Jul-2014

	
2

	
***

	
42523, 36911

	
Note 4

	
***

	
***

	
***

	
***

	
***

	
Aug-2014

	
4

	
***

	
36907, 42524,35973, 42525

	
Note 4

	
***

	
***

	
***

	
***

	
***

	
Sep-2014

	
4

	
***

	
36935, 42528, 42527, 42531

	
Note 4

	
***

	
***

	
***

	
***

	
***

	
Oct-2014

	
3

	
***

	
36909, 36732, 36920

	
Note 4

	
***

	
***

	
***

	
***

	
***

	
Total:

	
73

	  	  	  	  	  	  	  	  

Notes:

1) ***

2)  ***

3)  ***

4) The Advance Payment Base Price is determined using the escalation factor from Boeing's 4th Qtr 2011 forecast.

5) The Advance Payment Base Price for MSN 36687 reflects an original delivery date of October-2012.  At time of delivery, the Economic Price Adjustment will be calculated based on the rescheduled delivery date of September 2012 in accordance with Exhibit D-2.

	
SWA-PA01810

	  	
Page 2 

	
57774, 57776, 57777, 60261-1F.TXT

	
Boeing Proprietary

	
SA-79

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