EX-10.1 2 d53331exv10w1.htm SUPPLEMENTAL AGREEMENT NO. 56 exv10w1
 

Exhibit 10.1
CONFIDENTIAL TREATMENT
Supplemental Agreement No. 56
to
Purchase Agreement No. 1810
between
THE BOEING COMPANY
and
SOUTHWEST AIRLINES CO.
Relating to Boeing Model 737-7H4 Aircraft (the Aircraft)
     THIS SUPPLEMENTAL AGREEMENT, entered into as of December 19, 2007, by and between THE BOEING COMPANY, a Delaware corporation with principal offices in Seattle, Washington, (Boeing) and SOUTHWEST AIRLINES CO., a Texas corporation with principal offices in Dallas, Texas (Buyer);
     WHEREAS, the parties hereto entered into Purchase Agreement No. 1810 dated January 19, 1994, relating to Boeing Model 737-7H4 aircraft (the Agreement) and;
     WHEREAS, Buyer has agreed to exercise two (2) April 2009 Option Aircraft as Block T-W-2 Aircraft and;
     NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree to amend the Agreement as follows:
1. The Table of Contents of the Agreement is deleted in its entirety and a new Table of Contents is attached hereto and incorporated into the Agreement by this reference.
2. Table 1 is deleted in its entirety and replaced by a new Table 1 which is attached hereto and is incorporated into the Agreement by this reference.
***Pursuant to 17 CFR 240.24b-2, confidential information has been omitted and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.
         
P.A. No. 1810
K/SWA 		  SA-56-1    

 

 

3. Table 2 is deleted in its entirety and replaced by a new Table 2 which is attached hereto and is incorporated into the Agreement by this reference.
4. All references in the Letter Agreements associated with Purchase Agreement No. 1810 shall be deemed to refer to the purchase by Buyer of four hundred two (402) Model 737-7H4 Aircraft, eighty-four (84) Model 737-7H4 Option Aircraft and fifty-four (54) Model 737-7H4 Purchase Right Aircraft, to the extent such reference is not specifically addressed herein.
5. The Advance Payment due upon signing assuming execution of this Supplemental Agreement on or before December 31, 2007 is:
***for two (2) April 2009 Block T-W-2 Aircraft
Buyer will pay the *** directly to Boeing on or before December 31, 2007.
The Agreement will be deemed to be supplemented to the extent herein provided and as so supplemented will continue in full force and effect.
EXECUTED IN DUPLICATE as of the day and year first above written.
                     
THE BOEING COMPANY       SOUTHWEST AIRLINES CO.    
 
                    
By:
  /s/ Nobuko Wiles
 
       By:   /s/ Laura Wright
 
    
Its:
  Attorney-In-Fact
 
       Its:   SVP Finance & CFO
 
    
         
P.A. No. 1810
K/SWA 		  SA-56-2    

 

 

TABLE OF CONTENTS
             
        Page   SA
        Number   Number
 
            
ARTICLES
            
1.
  Subject Matter of Sale   1-1   SA-13
2.
  Delivery, Title and Risk of Loss   2-1   SA-28
3.
  Price of Aircraft   3-1   SA-47
4.
  Taxes   4-1    
5.
  Payment   5-1    
6.
  Excusable Delay   6-1    
7.
  Changes to the Detail Specification   7-1   SA-1
8.
  Federal Aviation Requirements and Certificates and Export License   8-1    
9.
  Representatives, Inspection, Flights and Test Data   9-1    
10.
  Assignment, Resale or Lease   10-1    
11.
  Termination for Certain Events   11-1    
12.
  Product Assurance; Disclaimer and Release; Exclusion of Liabilities; Customer Support; Indemnification and Insurance   12-1    
13.
  Buyer Furnished Equipment and Spare Parts   13-1    
14.
  Contractual Notices and Requests   14-1    
15.
  Miscellaneous   15-1    
         
P.A. No. 1810
K/SWA 		  i   SA-56

 

 

TABLE OF CONTENTS CON’T
         
        SA
        Number
 
        
TABLE    
1.
  Aircraft Information Table   SA-56
2.
  Option Aircraft Information Table   SA-56
 
        
EXHIBITS    
A
   Aircraft Configuration   SA-47
B
   Product Assurance Document   SA-1
C
  Customer Support Document    
D
  Price Adjustments Due to Economic Fluctuations — Aircraft    
E
  Buyer Furnished Equipment Provisions Document    
F
  Defined Terms Document    
 
        
LETTER AGREEMENTS    
1810-1
  Waiver of Aircraft Demonstration Flight    
         
P.A. No. 1810
K/SWA 		  ii   SA-56

 

 

TABLE OF CONTENTS CON’T
         
        SA
RESTRICTED LETTER AGREEMENTS   Number
 
        
6-1162-RLL-932R2
  Promotional Support   SA-13
6-1162-RLL-933R20
  Option Aircraft   SA-47
6-1162-RLL-934R3
  Disclosure of Confidential Information   SA-14
6-1162-RLL-935R1
  Performance Guarantees   SA-1
6-1162-NIW-890
  ***   SA-39
6-1162-RLL-936R4
  Certain Contractual Matters   SA-4
6-1162-RLL-937
  Alternate Advance Payment Schedule    
6-1162-RLL-938
  ***    
6-1162-RLL-939R1
  Certification Flight Test Aircraft   SA-1
6-1162-RLL-940R1
  Training Matters   SA-1
6-1162-RLL-941R2
  Other Matters   SA-13
6-1162-RLL-942
  Open Configuration Matters    
6-1162-RLL-943R1
  Substitution Rights   SA-6
6-1162-RLL-944
  ***    
6-1162-RLL-945
  Comparison of 737-7H4 and 737-3H4 Block Fuel Burn    
6-1162-RLL-1855R3
  Additional Contractual Matters   SA-4
6-1162-RLL-1856
  ***   SA-1
6-1162-RLL-1857
  Service Ready Validation Program Field Test   SA-1
6-1162-RLL-1858R1
  Escalation Matters   SA-4
         
P.A. No. 1810
K/SWA 		  iii   SA-56

 

 

TABLE OF CONTENTS CON’T
         
        SA
RESTRICTED LETTER AGREEMENTS   Number
 
6-1162-RLL-2036
  Amortization of Costs for Customer Unique Changes   SA-1
6-1162-RLL-2037
  Reconciliation of the Aircraft Basic Price   SA-1
6-1162-RLL-2073
  Maintenance Training Matters   SA-1
6-1162-KJJ-054R1
  Business Matters    
6-1162-KJJ-055R1
  Structural Matters   SA-25
6-1162-KJJ-056
  Noise and Emission Matters   SA-13
6-1162-KJJ-057
  Product Development Matters   SA-13
6-1162-KJJ-058
  Additional Substitution Rights   SA-13
6-1162-KJJ-150
  Flight Control Computer & Mode Control Panel Spares Matter   SA-14
6-1162-MSA-185R3
  Delivery Change Contractual Matters   SA-21
6-1162-JMG-669R8
  ***   SA-54
6-1162-JMG-747R1
  ***   SA-36
6-1162-CHL-217
  Rescheduled Flight Test Aircraft   SA-32
6-1162-NIW-606R1
  ***   SA-36
6-1162-NIW-640
  Early Delivery of Two April 2004 Aircraft   SA-35
6-1162-NIW-889
  Warranty — Exterior Color Schemes and Markings for YA143 and on   SA-39
6-1162-NIW-1142
  ***   SA-43
6-1162-NIW-1369
  ***   SA-46
         
P.A. No. 1810
K/SWA 		  iv   SA-56

 

 

Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table
                                 
    Base Aircraft   Special   Aircraft Basic   Base Year
    Price   Features   Price   Dollars
Block A, B, C, D & E Aircraft
     * **     * **     * **   July 1992
Block F & G Aircraft
     * **     * **     * **   July 1992
Block H Aircraft
     * **     * **     * **   July 1992
Block I Aircraft
     * **     * **     * **   July 1992
Block J Aircraft
     * **     * **     * **   July 1992
Block K Aircraft
     * **     * **     * **   July 1992
Block K-W Aircraft
     * **     * **     * **   July 1992
Block L Aircraft
     * **     * **     * **   July 1992
Block T Aircraft
     * **     * **     * **   July 1999
Block T-W Aircraft
     * **     * **     * **   July 1999
Block T-W-1 / T-W-1a Aircraft
     * **     * **     * **   July 1999
Block T-W-2 / T-W-2a Aircraft
     * **     * **     * **   July 1999
Block K-W Aircraft: Block K airplanes with production winglets installation
Block T-W Aircraft: Block T airplanes with production winglets installation
Block T-W-1 / T-W-1a Aircraft: Firm Aircraft contracted to deliver from May 1, 2006 through June 2008 at the signing of SA-47 — (T-W-1a Aircraft — Advance Payment Schedule per LA 6-1162-JGM-669)
Block T-W-2 / T-W-2a Aircraft: U-W-1 Option Aircraft which became Firm Aircraft after signing of SA-47 and
Firm Aircraft contracted to deliver in July 2008 forward at the signing of SA47 —
(T-W-2a Aircraft — Advance Payment Schedule per LA 6-1162-JGM-669)
         
SWA   Page 1   SA-56

 

 

Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table
                 
            Escalation Estimate    
Delivery   Number of   Aircraft   Adv Payment Base    
Date   Aircraft   Block   Price Per A/P   Serial Number
Dec-2000   2   E   ***    
Jan-2001   1   E   ***    
Feb-2001   1   E   ***    
Mar-2001   2   E   ***    
Jun-2001   3   E   ***    
Sep-2001   3   E   ***    
Oct-1998   1   F   ***    
Nov-1998   2   F   ***    
Dec-1998   2   F   ***    
Mar-1999   2   G   ***    
Jun-1999   2   H   ***    
Jul-1999   1   H   ***    
Aug-1999   1   H   ***    
Sep-1999   2   H   ***    
Oct-1999   1   H   ***    
Mar-2000   1   H   ***    
Apr-2000   2   H   ***    
Sep-2000   1   H   ***    
Oct-2000   2   H   ***    
Mar-2001   2   H   ***    
Apr-2001   1   H   ***    
Oct-2001   3   H   ***    
Nov-2001   2   I   ***    
Dec-2001   1   I   ***    
Jan-2002   1   I   ***    
Mar-2002   4   I   ***    
Apr-2002   2   I   ***    
Dec-2002   2   I   ***    
May-2003   1   I   ***    
Jun-2003   2   I   ***    
Jul-2003   1   I   ***    
Aug-2003   1   I   ***    
Sep-2003   3   I   ***    
Nov-2002   1   J   ***    
Dec-2002   1   J   ***    
Nov-2003   2   J   ***    
Dec-2003   2   J   ***    
Mar-2004   1   J   ***    
Mar-2004   1   K   ***    
Apr-2004   3   K   ***    
May-2004   1   K   ***    
Jun-2004   2   K   ***    
Jul-2004   2   K   ***    
         
SWA   Page 2   SA-56

 

 

Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table
                 
            Escalation Estimate    
Delivery   Number of   Aircraft   Adv Payment Base    
Date   Aircraft   Block   Price Per A/P   Serial Number
Sep-2004   1   K-W   ***    
Oct-2004   4   K-W   ***    
Oct-1999   1   L   ***    
Nov-1999   2   L   ***    
Dec-1999   1   L   ***    
Jun-2000   3   L   ***    
Jul-2000   3   L   ***    
Sep-2000   1   L   ***    
Oct-2000   1   L   ***    
Nov-2000   4   L   ***    
Dec-2000   1   L   ***    
Jan-2001   1   L   ***    
Feb-2001   1   L   ***    
Jul-2001   1   L   ***    
Sep-2001   1   L   ***    
Oct-2001   1   L   ***    
Mar-2003   2   L   ***    
Jul-2003   1   L   ***    
Aug-2003   2   L   ***    
Nov-2001   1   T   ***    
Feb-2002   1   T   ***    
Jan-2004   2   T   ***    
Feb-2004   1   T   ***    
Apr-2004   3   T   ***    
May-2004   1   T   ***    
Jun-2004   6   T   ***    
Jul-2004   2   T   ***    
Aug-2004   6   T-W   ***    
Sep-2004   4   T-W   ***    
Oct-2004   0   T-W   ***    
Nov-2004   3   T-W   ***    
Dec-2004   3   T-W   ***    
Jan-2005   5   T-W   ***    
Feb-2005   3   T-W   ***    
Mar-2005   4   T-W   ***    
Apr-2005   4   T-W   ***    
May-2005   2   T-W   ***    
Jun-2005   4   T-W   ***    
Jul-2005   2   T-W   ***    
Aug-2005   2   T-W   ***    
Sep-2005   3   T-W   ***    
Oct-2005   2   T-W   ***    
Nov-2005   2   T-W   ***    
Dec-2005   1   T-W   ***    
Jan-2006   1   T-W   ***    
Feb-2006   4   T-W   ***    
Mar-2006   3   T-W   ***    
         
SWA   Page 3   SA-56

 

 

Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table
                 
            Escalation Estimate    
Delivery   Number of   Aircraft   Adv Payment Base    
Date   Aircraft   Block   Price Per A/P   Serial Number
Apr-2006   2   T-W   ***    
May-2006   5   T-W-1   ***    
Jun-2006   5   T-W-1   ***    
Jul-2006   3   T-W-1   ***    
Aug-2006   3   T-W-1   ***    
Sep-2006   3   T-W-1   ***    
Oct-2006   1   T-W-1   ***    
Nov-2006   2   T-W-1   ***    
Dec-2006   2   T-W-1   ***    
Jan-2007   2   T-W-1   ***    
Feb-2007   3   T-W-1   ***    
Mar-2007   2   T-W-1   ***    
Apr-2007   3   T-W-1   ***    
May-2007   3   T-W-1   ***    
Jun-2007   2   T-W-1   ***    
Jun-2007   1   T-W-1a   ***   36528
Jul-2007   2   T-W-1   ***    
Jul-2007   1   T-W-1a   ***   36610
Aug-2007   2   T-W-1   ***    
Aug-2007   3   T-W-1a   ***   36611, 36632 & 36633
Sep-2007   2   T-W-1   ***    
Sep-2007   1   T-W-1a   ***   36612
Oct-2007   3   T-W-1   ***    
Oct-2007   1   T-W-1a   ***   36613
Nov-2007   1   T-W-1   ***    
Nov-2007   1   T-W-1a   ***   36614
Dec-2007   2   T-W-1   ***    
Dec-2007   1   T-W-1a   ***   36615
Jan-2008   1   T-W-1   ***    
Jan-2008   2   T-W-1a   ***   36616 & 36617
Jan-2008   1   T-W-2   ***   36887
Feb-2008   1   T-W-1   ***    
Feb-2008   3   T-W-1a   ***   36618, 36619 & 36620
Mar-2008   1   T-W-1   ***    
Mar-2008   2   T-W-1a   ***   36621 & 36622
Mar-2008   1   T-W-2   ***   36888
Apr-2008   1   T-W-1   ***    
Apr-2008   2   T-W-1a   ***   36623 & 36624
May-2008   1   T-W-1   ***    
May-2008   2   T-W-1a   ***   36625 & 36626
Jun-2008   1   T-W-1   ***    
Jun-2008   2   T-W-1a   ***   36627 & 36628
Jul-2008   2   T-W-2a   ***    
Jul-2008   2   T-W-2   ***   36889 & 36890
Aug-2008   1   T-W-2a   ***    
Oct-2008   1   T-W-2a   ***    
         
SWA   Page 4   SA-56

 

 

Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table
                 
            Escalation Estimate    
Delivery   Number of   Aircraft   Adv Payment Base    
Date   Aircraft   Block   Price Per A/P   Serial Number
Nov-2008   1   T-W-2a   ***    
Dec-2008   1   T-W-2a   ***    
Jan-2009   1   T-W-2a   ***    
Feb-2009   2   T-W-2a   ***    
Mar-2009   2   T-W-2a   ***    
Apr 2009   2   T-W-2a   ***    
Apr-2009   2   T-W-2a   ***   36899 & 36900
May-2009   2   T-W-2a   ***    
Jun-2009   2   T-W-2a   ***    
Jul-2009   2   T-W-2a   ***    
Aug-2009   1   T-W-2a   ***    
Sep-2009   1   T-W-2a   ***    
Oct-2009   1   T-W-2a   ***    
Nov-2009   1   T-W-2a   ***    
Dec-2009   1   T-W-2a   ***    
Jan-2010   1   T-W-2a   ***    
Feb-2010   1   T-W-2a   ***    
Mar-2010   1   T-W-2a   ***    
Apr-2010   1   T-W-2a   ***    
May-2010   1   T-W-2a   ***    
Jun-2010   1   T-W-2a   ***    
Jul-2010   1   T-W-2a   ***    
Aug-2010   1   T-W-2a   ***    
Sep-2010   1   T-W-2a   ***    
Oct-2010   1   T-W-2a   ***    
Jan-2011   1   T-W-2a   ***    
Feb-2011   1   T-W-2a   ***    
Mar-2011   1   T-W-2a   ***    
Apr-2011   1   T-W-2a   ***    
May-2011   1   T-W-2a   ***    
Jun-2011   1   T-W-2a   ***    
Jul-2011   1   T-W-2a   ***    
Aug-2011   1   T-W-2a   ***    
Sep-2011   1   T-W-2a   ***    
Oct-2011   1   T-W-2a   ***    
Jan-2012   1   T-W-2a   ***    
Feb-2012   1   T-W-2a   ***    
Mar-2012   1   T-W-2a   ***    
Apr-2012   1   T-W-2a   ***    
May-2012   1   T-W-2a   ***    
Jun-2012   1   T-W-2a   ***    
Jul-2012   1   T-W-2a   ***    
Aug-2012   1   T-W-2a   ***    
Sep-2012   1   T-W-2a   ***    
Oct-2012   1   T-W-2a   ***    
Jan-2013   1   T-W-2   ***   36891
         
SWA   Page 5   SA-56

 

 

Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table
                 
            Escalation Estimate    
Delivery   Number of   Aircraft   Adv Payment Base    
Date   Aircraft   Block   Price Per A/P   Serial Number
Jan-2013   1   T-W-2a   ***    
Feb-2013   1   T-W-2a   ***    
Mar-2013   1   T-W-2a   ***    
Mar-2013   1   T-W-2   ***    
Apr-2013   1   T-W-2   ***    
May-2013   1   T-W-2   ***    
Jun-2013   2   T-W-2   ***    
Jul-2013   1   T-W-2   ***    
Aug-2013   2   T-W-2   ***    
Sep-2013   2   T-W-2   ***    
Oct-2013   2   T-W-2   ***    
Nov-2013   1   T-W-2   ***    
Dec-2013   2   T-W-2   ***    
Jan-2014   1   T-W-2   ***    
Feb-2014   1   T-W-2   ***    
Mar-2014   1   T-W-2   ***    
Apr-2014   1   T-W-2   ***    
May-2014   1   T-W-2   ***    
Jun-2014   1   T-W-2   ***    
Jul-2014   1   T-W-2   ***    
Aug-2014   1   T-W-2   ***    
Sep-2014   1   T-W-2   ***    
Oct-2014   1   T-W-2   ***    
         
SWA   Page 6   SA-56

 

 

Table 2 to Purchase Agreement No. 1810
(Letter Agreement No. 6-1162-RLL-933R20)
Option Aircraft Information Table
Price Description of Option Aircraft:
                                 
    Base Aircraft   Special   Aircraft Basic   Base Year
    Price   Features   Price   Dollars
Block U Option Aircraft
(without Winglets)
     * **     * **     * **   July 1999
Block U-W Option Aircraft
(with Winglets)
     * **     * **     * **   July 1999
Block U-W-1 Option Aircraft
     * **     * **     * **   July 1999
         
Delivery of Purchase Right Aircraft:
   Quantity               54
Delivery Period of Purchase Right Aircraft:
  Complete delivery not later than Dec. 31, 2014
Condition of Offer for Purchase Right Aircraft:
  Subject to Available Position
 
        
Remaining Option Aircraft:
  84    
         
SWA   Page 1   SA-56

 

 

Table 2 to Purchase Agreement No. 1810
(Letter Agreement No. 6-1162-RLL-933R20)
Option Aircraft Information Table
                     
Aircraft   Number of   Option   Adv Payment Base    
Delivery   Option   Aircraft   Price Per    
Mo. & Yr.   Aircraft   Block   Option Aircraft   Option Exercise
May-2009
    1     U-W-1   ***   January 1, 2008
Jun-2009
    1     U-W-1   ***   February 1, 2008
Jul-2009
    2     U-W-1   ***   March 3, 2008
Aug-2009
    1     U-W-1   ***   April 1, 2008
Oct-2009
    1     U-W-1   ***   June 2, 2008
Nov-2009
    1     U-W-1   ***   July 1, 2008
Dec-2009
    1     U-W-1   ***   August 1, 2008
Jan-2010
    1     U-W-1   ***   September 1, 2008
Feb-2010
    1     U-W-1   ***   October 1, 2008
Mar-2010
    1     U-W-1   ***   November 3, 2008
Apr-2010
    1     U-W-1   ***   December 1, 2008
May-2010
    2     U-W-1   ***   January 1, 2009
Jun-2010
    3     U-W-1   ***   February 2, 2009
Jul-2010
    2     U-W-1   ***   March 2, 2009
Aug-2010
    2     U-W-1   ***   April 1, 2009
Sep-2010
    2     U-W-1   ***   May 1, 2009
Oct-2010
    3     U-W-1   ***   June 1, 2009
Nov-2010
    3     U-W-1   ***   July 1, 2009
Dec-2010
    3     U-W-1   ***   August 3, 2009
Jan-2011
    1     U-W-1   ***   September 1, 2009
Feb-2011
    2     U-W-1   ***   October 1, 2009
Mar-2011
    1     U-W-1   ***   November 2, 2009
Apr-2011
    1     U-W-1   ***   December 1, 2009
May-2011
    2     U-W-1   ***   January 1, 2010
Jun-2011
    2     U-W-1   ***   February 1, 2010
Jul-2011
    2     U-W-1   ***   March 1, 2010
Aug-2011
    2     U-W-1   ***   April 1, 2010
Sep-2011
    2     U-W-1   ***   May 3, 2010
Oct-2011
    2     U-W-1   ***   June 1, 2010
Nov-2011
    3     U-W-1   ***   July 1, 2010
Dec-2011
    2     U-W-1   ***   August 2, 2010
Jan-2012
    3     U-W-1   ***   September 1, 2010
Feb-2012
    3     U-W-1   ***   October 1, 2010
Mar-2012
    2     U-W-1   ***   November 1, 2010
Apr-2012
    3     U-W-1   ***   December 1, 2010
May-2012
    3     U-W-1   ***   January 3, 2011
Jun-2012
    3     U-W-1   ***   February 1, 2011
Jul-2012
    2     U-W-1   ***   March 1, 2011
Aug-2012
    2     U-W-1   ***   April 1, 2011
Sep-2012
    2     U-W-1   ***   May 2, 2011
Oct-2012
    2     U-W-1   ***   June 1, 2011
Nov-2012
    3     U-W-1   ***   July 1, 2011
Dec-2012
    2     U-W-1   ***   August 1, 2011
Total
    84              
SWA   Page 2   SA-56