60; Exhibit 10.2
60; CONFIDENTIAL TREATMENT
Supplemental Agreement No. 55
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 August 31, 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, Boeing and Buyer have agreed to revise the Contract Delivery Month of one 737-7H4 Aircraft bearing Manufacturer’s Serial Number 32542 to October 2007 from November 2007 (Acceleration 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.
***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-55-1
K/SWA
| 2. | Table 1 is deleted in its entirety and replaced by a new Table 1 attached hereto, reflecting deletion of one Block T-W-1 Aircraft with a Contract Delivery Month of November 2007 |
3. 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 (400) Model 737-7H4 Aircraft, eighty-six (86) 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.
4. There will be no Advance Payments adjustment relating to the Acceleration Aircraft made at execution of this Supplemental Agreement. The Advance Payment received by Boeing from Buyer for the Acceleration Aircraft will be applied to the Purchase Price for the Acceleration Aircraft along with applicable credits at the time of delivery.
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/ Scott Topping |
Its: Attorney-In-Fact | Its:VP & Treasurer |
P.A. No. 1810 SA-55-2
K/SWA
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 i SA-55
K/SWA
TABLE OF CONTENTS CON'T
| SA | |||
| Number | |||
| TABLE | |||
| 1. | Aircraft Information Table | SA-55 | |
| 2. | Option Aircraft Information Table | SA-54 | |
| 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 ii SA-55
K/SWA
TABLE OF CONTENTS CON'T
| SA | ||
| Number | ||
| RESTRICTED LETTER AGREEMENTS | ||
| 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 iii SA-55
K/SWA
TABLE OF CONTENTS CON'T
| SA | ||
| Number | ||
| RESTRICTED LETTER AGREEMENTS | ||
| 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 SA-35 Aircraft | |
| 6-1162-NIW-889 | Warranty - Exterior Color Schemes SA-39 and Markings for YA 143 and on | |
| 6-1162-NIW-1142 | *** | SA-43 |
| 6-1162-NIW-1369 | *** | SA-46 |
P.A. No. 1810 iv SA-55
K/SWA
Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table
Base Aircraft Price | Special Features | Aircraft Basic Price | Base Year 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-55
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-55
Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table
| 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-55
Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table
| 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 | *** | |
| Nov-2008 | 1 | T-W-2a | *** |
SWA Page 4 SA-55
Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table
| 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 | *** | |
| 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 |
| Jan-2013 | 1 | T-W-2a | *** | |
| Feb-2013 | 1 | T-W-2a | *** | |
| Mar-2013 | 1 | T-W-2a | *** |
SWA Page 5 SA-55
Table 1 to
Purchase Agreement No. 1810
Aircraft Information Table
| 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-55