EX-10.1 2 ex10110q2019.htm EXHIBIT 10.1 Q1'19 04.26.19 Exhibit


Exhibit 10.1
Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

SUPPLEMENTAL AGREEMENT NO. 10
to
Purchase Agreement No. 03735
between
THE BOEING COMPANY
and
AMERICAN AIRLINES, INC.
Relating to Boeing Model 737 MAX Aircraft
This SUPPLEMENTAL AGREEMENT No. 10 (SA-10), entered into as of March _26__, 2019 (Effective Date), by and between THE BOEING COMPANY, a Delaware corporation with offices in Seattle, Washington (Boeing) and AMERICAN AIRLINES, INC. a Delaware corporation with offices in Fort Worth, Texas, together with its successors and permitted assigns (Customer);
WHEREAS, Boeing and Customer entered into Purchase Agreement No. 03735 dated February 1, 2013 relating to Boeing Model 737 MAX Aircraft, as amended and supplemented (Purchase Agreement) and capitalized terms used herein without definitions shall have the meanings specified therefore in such Purchase Agreement;

WHEREAS, Customer and Boeing desire to amend that certain Table 1R4 to change the Nominal Delivery Month to the Scheduled Delivery Month (and [****]) for Aircraft delivering in 2021; and
 
WHEREAS, Customer and Boeing desire to revise letter agreement AAL-PA-3735-1106659R1, entitled “[****]”, to extend the [****].
    
NOW, THEREFORE, the parties agree that the Purchase Agreement is amended as set forth below and otherwise agree as follows:

PA 03735
 
SA-10, Page 1

BOEING PROPRIETARY
[****]=[CONFIDENTIAL PORTION HAS BEEN OMITTED BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED]


1.
Table of Contents.
The “Table Of Contents” to the Purchase Agreement referencing SA-9 in the footer is deleted in its entirety and is replaced with the new “Table Of Contents” (attached hereto) referencing SA-10 in the footer to reflect changes made to the Purchase Agreement by this SA-10. Such new Table of Contents is hereby incorporated into the Purchase Agreement in replacement of its predecessor.
2.
Tables.

2.1    Table 1R4. Table 1R4, entitled “737-8 Aircraft Delivery, Description, Price, and Advance Payments,” referencing SA-9 in the footer is deleted in its entirety and replaced with Table 1R5, entitled “737-8 Aircraft Delivery, Description, Price, and Advance Payments,” (attached hereto) referencing SA-10 in the footer. Such Table 1R5 is hereby incorporated into the Purchase Agreement in replacement of Table 1R4.
3.
Letter Agreement.
3.1    Letter Agreement No. AAL-PA-3735-1106659R1, entitled “[****]”, is deleted in its entirety and replaced with the similarly titled Letter Agreement No. AAL-PA-3735-1106659R2 (attached hereto) referencing SA-10 in the footer (Revised [****] Agreement). The Revised [****] Agreement is hereby incorporated into the Purchase Agreement.
4.
Miscellaneous.
4.1    The Purchase Agreement is amended as set forth above by the revised Table of Contents, Table 1R5, and the Revised [****] Agreement. All other terms and conditions of the Purchase Agreement remain unchanged and are in full force and effect.
4.2    References in the Purchase Agreement and any supplemental agreements and associated letter agreements to “Table 1” or “Table 1R2” or “Table 1R3”, or “Table1R4 and Table 1-2” or “Table 1(R4) and Table 1-2” are deemed to refer to “Table 1R5 and Table 1-2”. References in the Purchase Agreement and any supplemental agreements and associated letter agreements to “Table 1R4” (where no corresponding reference to Table 1-2 is made) are deemed to refer to “Table 1R5”, including without limitation, and for the avoidance of doubt, the following references to Table 1R4 which are deemed to refer to only Table 1R5 (and not Table 1R5 and Table 1-2):

PA 03735
 
SA-10, Page 2

BOEING PROPRIETARY
[****]=[CONFIDENTIAL PORTION HAS BEEN OMITTED BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED]


4.2.1     References to Table 1R4 in Letter Agreement AAL-PA-LA-1106650R3 entitled “[****]”; and
4.2.2    References to Table 1R4 in Section 3 of Supplemental Agreement No. 9 dated April 6, 2018.
Additionally, for the avoidance of doubt, references in the Purchase Agreement and any supplemental agreements and associated letter agreements to “Table 1-2” (where no corresponding reference to Table 1R4 is made) remain references to “Table 1-2”
4.3    References in the Purchase Agreement and any supplemental agreements and associated letter agreements to the tables, exhibits, supplemental exhibits and letter agreements listed in the left column of the below table shall be deemed to refer to the corresponding tables, exhibits, supplemental exhibits and letter agreements listed in the right column of the below table.
Reference
Replacement Reference
Letter Agreement No. AAL-PA-3735-1106659R1
Letter Agreement No. AAL-PA-3735-1106659R2
4.4    The parties agree and recognize that the Scheduled Delivery Month for [****] Aircraft being delivered in 2021 is the [****]. In accordance with Section 2.3 of the Basic Articles of the Purchase Agreement, the Scheduled Delivery Month is to be used for purposes of applying all provisions of the Purchase Agreement. Accordingly, the Advance Payment Base Price for such Aircraft has [****]. The parties have agreed that such [****].




PA 03735
 
SA-10, Page 3

BOEING PROPRIETARY
[****]=[CONFIDENTIAL PORTION HAS BEEN OMITTED BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED]




AGREED AND ACCEPTED this
 
 
 
 
 
March 26, 2019
 
 
Date
 
 
 
 
 
THE BOEING COMPANY
 
AMERICAN AIRLINES, INC.


 
 
/s/ The Boeing Company
 
/s/ American Airlines, Inc.
Signature
 
Signature
 
 
 
The Boeing Company
 
American Airlines, Inc.
Printed name
 
Printed name
 
 
 
Attorney-in-Fact
 
EVP & CFO
Title
 
Title




















PA 03735
 
SA-10, Page 4
BOEING PROPRIETARY



TABLE OF CONTENTS

ARTICLES
SA
NUMBER
Article 1.
Quantity, Model and Description
 
Article 2.
Delivery Schedule
 
Article 3.
Price
 
Article 4.
Payment
 
Article 5.
Additional Terms
 
Article 6.
Confidentiality
 
TABLE
 
1R5.
1-2
Aircraft Information Table
Revised Delivery Aircraft Information Table
10
9
EXHIBITS
 
AR1
A2
Aircraft Configuration
Revised Delivery Aircraft Configuration
6
9
B.
Aircraft Delivery Requirements and Responsibilities
 
C.
Definitions
 
SUPPLEMENTAL EXHIBITS
 
AE1.
[****]
 
BFE1.
BFE Variables
 
CS1R1.
Customer Support Variables
4
EE1.
[****]
 
SLP1.
[****]
 
LETTER AGREEMENTS
 
LA-1106648R1
Special Matters
6
LA-1106649
[****]
 
LA-1106650R3
[****]
9
LA-1106651R1
[****]
9
LA-1106652
Aircraft Model Substitution
 
LA-1106654
AGTA Terms Revisions for MAX
 
LA-1106655
Open Matters – 737 MAX  Withdrawn
6
LA-1106656R1
[****]
1
LA-1106657R1
[****]
2
LA-1106663 R1
[****]
2
LA-1106664 R1
[****]
2
LA-1106658
[****]
 
LA-1106659R2
[****]
10

PA-03735
TABLE OF CONTENTS, Page 1 of 2
SA-10

BOEING PROPRIETARY
[****]=[CONFIDENTIAL PORTION HAS BEEN OMITTED BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED]



TABLE OF CONTENTS, continued


LA-1106660
Spare Parts Initial Provisioning
 
 
 
 
LETTER AGREEMENTS, continued
SA
NUMBER
LA-1106661R2
[****]
2
LA-1106667
[****]
 
LA-1106668R1
[****]
8
LA-1106669
[****]
 
LA-1106670
Confidentiality
 
LA-1106671R1
Miscellaneous Commitments
1
LA-1106672
[****]
 
LA-1106673R1*
CS1 Special Matters
4
LA-1106677
Optional Features Comfort Letter
 
LA-1600073
[****]
4
LA-1600852
[****]
5
LA-1603773
[****]
5
LA-1605402
[****]
6
LA-1700919
[****]
7
LA-1801206
[****]
9

* ‑ This is an intended gap as there are no Letter Agreements LA-1106674 through LA‑1106676 incorporated by the Purchase Agreement.





PA-03735
TABLE OF CONTENTS, Page 2 of 2
SA-10

BOEING PROPRIETARY
[****]=[CONFIDENTIAL PORTION HAS BEEN OMITTED BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED]


Table 1R5 To
Purchase Agreement No. PA-03735
737-8 Aircraft Delivery, Description, Price and Advance Payments


 
Airframe Model/MTOW:   737-8
[****]
Detail Specification:
[****]
 
 
 
Engine Model/Thrust: CFMLEAP-1B25
[****]
Airframe Price Base Year/Escalation Formula:
[****]
[****]
 
 
]Airframe Price:
$[****]
Engine Price Base Year/Escalation Formula:
 
 
 
 
Optional Features:
    $[****]
 
 
 
 
 
Sub-Total of Airframe and Features:
$[****]
Airframe 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:
$[****]
 
 
 
 
 
LIFT Seats Provided by Boeing (Estimate):
$[****]
 
 
 
 
 
Deposit per Aircraft:
$[****]
 
 
 
 
Delivery Date
Number of Aircraft
Escalation Factor (Airframe)
Manufacturer Serial Number
Nominal Delivery Month
Escalation Estimate Adv Payment Base Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
At Signing
[****]
[****]
[****]
Total
[****]
[****]-2017
1
[****]
44459
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2017
1
[****]
44463
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2017
1
[****]
44465
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2017
1
[****]
44446
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2018
1
[****]
44447
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2018
1
[****]
44451
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2018
1
[****]
44448
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2018
1
[****]
44449
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2018
1
[****]
44455
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2018
1
[****]
44450
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2018
1
[****]
44452
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2018
1
[****]
44453
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2018
1
[****]
44454
N/A
$[****]
$[****]
$[****]
$[****]
$[****]

AAL-PA-03735 108567-1F.txt
 
SA-10
Page 1
Boeing Proprietary
[****]=[CONFIDENTIAL PORTION HAS BEEN OMITTED BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED]

Table 1R5 To
Purchase Agreement No. PA-03735
737-8 Aircraft Delivery, Description, Price and Advance Payments

Delivery Date
Number of Aircraft
Escalation Factor (Airframe)
Manufacturer Serial Number
Nominal Delivery Month
Escalation Estimate Adv Payment Base Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
At Signing
[****]
[****]
[****]
Total
[****]
[****]-2018
1
[****]
44456
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2018
1
[****]
44457
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2018
1
[****]
44458
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2018
1
[****]
44460
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2018
1
[****]
44461
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2018
1
[****]
44462
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2018
1
[****]
44464
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2019
1
[****]
44466
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2019
1
[****]
44467
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2019
1
[****]
44468
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2019
1
[****]
44469
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2019
1
[****]
44471
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2019
1
[****]
44470
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2019
1
[****]
44472
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2019
1
[****]
44473
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2019
1
[****]
44474
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2019
1
[****]
44476
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2019
1
[****]
44475
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2019
1
[****]
44477
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2019
1
[****]
44479
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2019
1
[****]
44478
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2019
1
[****]
44481
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2019
1
[****]
44480
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2019
1
[****]
44482
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2019
1
[****]
44483
N/A
$[****]
$[****]
$[****]
$[****]
$[****]

AAL-PA-03735 108567-1F.txt
 
SA-10
Page 2
Boeing Proprietary
[****]=[CONFIDENTIAL PORTION HAS BEEN OMITTED BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED]

Table 1R5 To
Purchase Agreement No. PA-03735
737-8 Aircraft Delivery, Description, Price and Advance Payments

Delivery Date
Number of Aircraft
Escalation Factor (Airframe)
Manufacturer Serial Number
Nominal Delivery Month
Escalation Estimate Adv Payment Base Price Per A/P
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
At Signing
[****]
[****]
[****]
Total
[****]
[****]-2019
1
[****]
44484
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2019
1
[****]
44485
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2020
1
[****]
 
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2020
1
[****]
 
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2020
1
[****]
 
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2020
1
[****]
 
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2020
1
[****]
 
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2020
1
[****]
 
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2020
1
[****]
 
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2020
1
[****]
 
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2020
1
[****]
 
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2020
1
[****]
 
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2020
1
[****]
 
N/A
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2021
1
[****]
 
No
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2021
1
[****]
 
Yes
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2021
1
[****]
 
Yes
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2021
1
[****]
 
Yes
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2021
1
[****]
 
Yes
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2021
1
[****]
 
Yes
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2021
1
[****]
 
Yes
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2021
1
[****]
 
Yes
$[****]
$[****]
$[****]
$[****]
$[****]
[****]-2021
1
[****]
 
No
$[****]
$[****]
$[****]
$[****]
$[****]
Total    60


AAL-PA-03735 108567-1F.txt
 
SA-10
Page 3
Boeing Proprietary
[****]=[CONFIDENTIAL PORTION HAS BEEN OMITTED BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED]


    
combined101exihbitimage2.gif
 
The Boeing Company
P.O. Box 3707
Seattle, WA 98124‑2207



AAL-PA-03735-LA-1106659R2


American Airlines, Inc.
P.O. Box 619616
Dallas-Fort Worth Airport, Texas 75261-9616

Subject:    [****]

Reference:    Purchase Agreement No. 03735 (Purchase Agreement) between The Boeing Company (Boeing) and American Airlines, Inc. (Customer) relating to Model 737-MAX aircraft (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.
Boeing and Customer wish to enter into an agreement pursuant to which each party will contribute equally to promotional programs in support of the entry into service of the Aircraft as more specifically provided below.
1.Definitions.
1.1    [****]
1.2    Covered Aircraft shall mean those Aircraft identified on Table 1R5 and Table 1-2 to the Purchase Agreement (as may be amended from time to time), any Substitute Aircraft pursuant to terms of Letter Agreement AAL-PA-03735-LA-1106652 entitled “Aircraft Model Substitution” and any [****] in which Customer exercises its rights pursuant to Letter Agreement AAL-PA-03735-LA-1106651R1 entitled “[****]”.
1.3    Performance Period shall mean [****]. The Performance Period [****].
1.4    Promotional Support shall mean mutually agreed marketing and promotion programs that promote the entry into service of the Covered Aircraft such as marketing research, tourism development, corporate identity, direct marketing, videotape or still photography, planning, design and production of collateral materials, management of promotion programs, advertising campaigns or such other marketing and promotional activities as the parties may mutually agree.

AAL-PA-03735-LA-1106659R2
 
SA-10
[****]
 
Page 1 of 3
BOEING PROPRIETARY
[****]=[CONFIDENTIAL PORTION HAS BEEN OMITTED BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED]


    
combined101exihbitimage2.gif
 
The Boeing Company
P.O. Box 3707
Seattle, WA 98124‑2207



1.5    Qualifying Third Party Fees shall mean [****] during the Performance Period to [****] for Promotional Support [****] the Performance Period.
2.Commitment.
[****]
3.Methods of Performance.
3.1    [****]
3.2    [****]
3.3    [****]
4.Project Approval.
Following the execution of this Letter Agreement, a Boeing Airline Marketing Services representative will meet with Customer’s designated representative to review and approve the extent, selection, scheduling, and funds disbursement process for the Promotional Support to be provided pursuant to this Letter Agreement.

AAL-PA-03735-LA-1106659R2
 
SA-10
[****]
 
Page 2 of 3
BOEING PROPRIETARY
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combined101exihbitimage2.gif
 
The Boeing Company
P.O. Box 3707
Seattle, WA 98124‑2207



5.Assignment.
Notwithstanding any other provisions of the Purchase Agreement, the rights and obligations described in this Letter Agreement are provided to Customer in consideration of Customer’s becoming the operator of the Aircraft and cannot be assigned in whole or in part.
6.Confidential Treatment.
The information contained herein represents confidential business information and has value precisely because it is not available generally or to other parties. Customer will limit the disclosure of its contents to employees of Customer with a need to know the contents for purposes of helping Customer perform its obligations under the Purchase Agreement and who understand they are not to disclose its contents to any other person or entity without the prior written consent of Boeing.

Very truly yours,

THE BOEING COMPANY
 
By:
/s/ The Boeing Company
 
Its:
Attorney-In-Fact
 
ACCEPTED AND AGREED TO this
 
Date:
March 26, 2019
 
AMERICAN AIRLINES, INC.
 
By:
/s/ American Airlines, Inc.
 
Its:
EVP & CFO


AAL-PA-03735-LA-1106659R2
 
SA-10
[****]
 
Page 3 of 3
BOEING PROPRIETARY
[****]=[CONFIDENTIAL PORTION HAS BEEN OMITTED BECAUSE IT (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED]