EX-10.1 2 luv-3312018xex101.htm SUPPLEMENTAL AGREEMENT NO. 104

Supplemental Agreement No. 104
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 No. 104 (SA-104) is entered into as of February 22, 2018, 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).

RECITALS:

WHEREAS, 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), collectively the “Aircraft”. This SA-104 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; and
WHEREAS, Boeing and Buyer agree to amend the Purchase Agreement by revising the delivery month of one (1) Model 737-8H4 Aircraft identified by MSN 64348 (Subject Aircraft) from July 2018 to August 2018.
NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree to amend the Purchase Agreement as follows:
1. TABLE OF CONTENTS
The Table of Contents is deleted in its entirety and replaced by a new Table of Contents (attached), which lists the table revised by this SA-104 and is identified by “SA-104”. Such revised Table of Contents, by this reference, is incorporated in the Purchase Agreement.
***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-104-1 |
| BOEING PROPRIETARY |

2. TABLES.
Table 1d, Aircraft Information Table - Block 800LUV Aircraft (non-ETOPS Configuration), is deleted in its entirety and replaced by a new Table 1d (attached). The new Table 1d reflects the revised delivery month for one (1) Aircraft.
3. LETTER AGREEMENT.
Letter Agreement No. SWA-PA-1810-LA-1801210, entitled “Revision to Contract Delivery Month of One (1) 737-8H4 (MSN64348),” is hereby incorporated into the Purchase Agreement.
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/ Kyle Kersavage | By: /s/ Chris Monroe
Its: Attorney‑In‑Fact | Its: Chris Monroe
| SVP, Finance

P.A. No. 1810 | SA-104-2 |
| BOEING PROPRIETARY |

TABLE OF CONTENTS
| Page | SA
| Number | Number

ARTICLES |  |  |
1. | Subject Matter of Sale | 1-1 | SA-92
2. | Delivery, Title and Risk |  |
| of Loss | 2-1 | SA-28
3. | Price of Aircraft | 3‑1 | SA-92
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-104

TABLE OF CONTENTS
| SA
| Number

TABLE

1b | Aircraft Information Table - Block 800LUV Aircraft | SA-82
1c | Aircraft Information Table - Block 800LUV Aircraft | SA-100
| (non-ETOPS Configuration)
1d | Aircraft Information Table - Block 800LUV Aircraft | SA-104
| (non-ETOPS Configuration)

EXHIBITS

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-101
F | Defined Terms Document
LETTER AGREEMENTS |  |
1810-1R1 | Waiver of Aircraft Demonstration Flight | SA-75

P.A. No. 1810 | ii |
K/SWA |  | SA-104

TABLE OF CONTENTS
| SA
| Number

RESTRICTED LETTER AGREEMENTS |
6‑1162‑RLL‑932R3 | *** | SA-75
6‑1162‑RLL‑934R5 | Disclosure of Confidential Information | SA-75
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-1001315R4 | *** | SA-92
| Attachment A | SA-100
SWA-PA-1810-LA-1003498R1 | *** | SA-75
SWA-PA-1810-LA-1003490R4 | *** | SA-92
SWA-PA-1810-LA-1003367R1 | *** | SA-75
SWA-PA-1810-LA-1105883 | Aircraft Model Substitution | SA-75
SWA-PA-1810-LA-1105885R3 | *** | SA-90
SWA-PA-1810-LA-1105886R2 | *** | SA-92
SWA-PA-1810-LA-1105887 | *** | SA-75
SWA-PA-1810-LA-1105888R5 | *** | SA-92
SWA-PA-1810-LA-1105889 | *** | SA-75
SWA-PA-1810-LA-1303010R1 | *** | SA-92
SWA-PA-1810-LA-1504814 | *** | SA-92
SWA-PA-1810-LA-1801210 | Revision to Contract delivery Month of | SA-104
| One (1) 737-8H4 (MSN 64348) |

P.A. No. 1810 | iii |
K/SWA |  | SA-104

TABLE OF CONTENTS

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
1a | Aircraft Information Table - Block 700LUV Aircraft | SA-91 | Deleted Under SA-92

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
A-4 | Aircraft Configuration - 737-700 Block T-W-2b Aircraft | SA-66 | Inactive
A-5 | Aircraft Configuration - Block 700LUV Aircraft | SA-75 | Deleted under SA-92
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

P.A. No. 1810 | iv |
K/SWA |  | SA-104

TABLE OF CONTENTS
Exhibits | Title | Last Updated under SA | Current Status
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
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

P.A. No. 1810 | v |
K/SWA |  | SA-104

TABLE OF CONTENTS
Letter Agreement | Title | Last Updated under SA | Current Status
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
SWA-PA-01810/03729-LA-1301169 | *** | SA-2 to PA 3729 | Inactive
SWA-PA-1810-LA-1105884R2 | Option Aircraft | SA-92 | Deleted under SA-103

P.A. No. 1810 | vi |
K/SWA |  | SA-104

Table 1d to
Purchase Agreement No. PA-01810
Aircraft Delivery, Description, Price and Advance Payments
Block 800LUV Aircraft (non-ETOPS Configuration)

Airframe Model/MTOW: | 737-800 | 174,200 pounds |  | Detail Specification: | D019A001SWA38 (1/9/2015)
Engine Model/Thrust: | CFM56-7B27 | 27,300 pounds |  | Airframe Price Base Year/Escalation Formula: | Jul-11 | ECI-MFG/CPI
Airframe Price: | *** |  | Engine Price Base Year/Escalation Formula: | N/A | N/A
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: | *** |  |  |  |
Deposit per Exercised Option Aircraft (OPEX): | *** |  |  |  |

Delivery Date | Number of Aircraft | Escalation Factor (Airframe) | Aircraft Serial Number | Escalation Forecast |  | 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-2016 | 2 | *** | 63593, 63594 | *** | OPEX | *** | *** | *** | *** | ***
May-2017 | 1 | *** | 63592 | *** | OPEX | *** | *** | *** | *** | ***
May-2017 | 1 | *** | 63575 | *** |  | *** | *** | *** | *** | ***
May-2017 | 1 | *** | 63576 | *** |  | *** | *** | *** | *** | ***
Jun-2017 | 2 | *** | 63577, 63578 | *** |  | *** | *** | *** | *** | ***
Jun-2017 | 3 | *** | 63596, 63595, 63598 | *** | OPEX | *** | *** | *** | *** | ***
Jun-2017 | 2 | *** | 63571, 63586 | *** |  | *** | *** | *** | *** | ***
Jun-2017 | 1 | *** | 63599 | *** | OPEX | *** | *** | *** | *** | ***
Jul-2017 | 1 | *** | 63581 | *** |  | *** | *** | *** | *** | ***
Aug-2017 | 1 | *** | 63587 | *** |  | *** | *** | *** | *** | ***
Aug-2017 | 2 | *** | 63573, 63574 | *** |  | *** | *** | *** | *** | ***
Sep-2017 | 1 | *** | 63572 | *** |  | *** | *** | *** | *** | ***

|  | SA-104
SWA-PA-01810 82233 / 88233 93899 | Boeing Proprietary | Page 1

Table 1d 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 |  | 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 ***
Oct-2017 | 1 | *** | 63579 | *** |  | *** | *** | *** | *** | ***
Oct-2017 | 1 | *** | 63597 | *** | OPEX | *** | *** | *** | *** | ***
Nov-2017 | 1 | *** | 63580 | *** |  | *** | *** | *** | *** | ***
Dec-2017 | 2 | *** | 63582, 63583 | *** |  | *** | *** | *** | *** | ***
Dec-2017 | 4 | *** | 63600, 63601, 63602, 36993 | *** | OPEX | *** | *** | *** | *** | ***
Jan-2018 | 1 | *** | 64115 | *** | OPEX | *** | *** | *** | *** | ***
Jan-2018 | 2 | *** | 63584, 63585 | *** |  | *** | *** | *** | *** | ***
Feb-2018 | 2 | *** | 64171, 64172 | *** | OPEX | *** | *** | *** | *** | ***
Mar-2018 | 1 | *** | 64174 | *** | OPEX | *** | *** | *** | *** | ***
Apr-2018 | 1 | *** | 64248 | *** | OPEX | *** | *** | *** | *** | ***
May-2018 | 2 | *** | 63588, 63589 | *** |  | *** | *** | *** | *** | ***
May-2018 | 2 | *** | 64251, 64250 | *** | OPEX | *** | *** | *** | *** | ***
Jun-2018 | 2 | *** | 63590, 63591 | *** |  | *** | *** | *** | *** | ***
Jun-2018 | 2 | *** | 64350, 64349 | *** | OPEX | *** | *** | *** | *** | ***
Jul-2018 | 1 | *** | 64347 | *** | OPEX | *** | *** | *** | *** | ***
Aug-2018 | 1 | *** | 64348 | *** | OPEX | *** | *** | *** | *** | ***
Aug-2018 | 3 | *** | 64799, 64800, 64801 | *** | OPEX | *** | *** | *** | *** | ***

Total: |  | 47

Notes:
1) ***
2) MSN 64348, above is revised to an August delivery. ***

|  | SA-104
SWA-PA-01810 82233 / 88233 93899 | Boeing Proprietary | Page 2

|  | The Boeing Company
| P. O. Box 3707
| Seattle, WA 98124-2207

SWA-PA-1810-LA-1801210
Southwest Airlines Co.
2702 Love Field Drive
P.O. Box 36611
Dallas, Texas 75235

Subject: | Revision to Contract Delivery Month of One (1) 737-8H4 (MSN 64348)

Reference: | Purchase Agreement No. PA-1810 (Purchase Agreement) between The Boeing Company (Boeing) and Southwest Airlines Co. (Customer) relating to Model 737-7H4 and 737-8H4 aircraft (Aircraft)

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

1. | Re-contracted Firm Aircraft.

Customer and Boeing have agreed to revise the delivery date (month) of the subject aircraft from July 2018 to August 2018 (Re-contracted Firm Aircraft). In consideration of the Re-contracted Firm Aircraft, Customer will ***

2. | Confidential Treatment.

Customer understands and agrees that the information contained herein represents confidential business information and has value precisely because it is not available generally or to other parties. Customer agrees to limit the disclosure of the contents of this Letter Agreement to (a) its directors and officers, (b) employees of Customer 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 Article) without the prior written consent of Boeing and (c) any auditors and attorneys of Customer who have a need to know such information and have signed a confidentiality agreement in the same form and substance similar to this Article, 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. Customer shall be fully responsible to Boeing for compliance with such obligations.

|  | Page 1
| BOEING PROPRIETARY |

Very truly yours,

THE BOEING COMPANY
By | /s/ Kyle Kersavage
Its | Attorney‑In‑Fact
ACCEPTED AND AGREED TO this
Date: | February 22, 2018
SOUTHWEST AIRLINES CO.
By | /s/ Chris Monroe
Its | Chris Monroe
| SVP, Finance

SWA-PA-1810-LA-1801210 |  | Page 2
| BOEING PROPRIETARY |