EX-10.1 2 sa-88pax18101redacted.htm SUPPLEMENTAL AGREEMENT NO. 88

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-88