SOUTHWEST AIRLINES CO - FORM 10-Q - EX-10.1 - SUPPLEMENTAL AGREEMENT NO. 95 - October 31, 2016

Attached files

file filename
10-Q - 3RD QUARTER 2016 FORM 10-Q - SOUTHWEST AIRLINES COluv-9302016x10q.htm
EX-32.1 - CERTIFICATION OF CEO AND CFO - SOUTHWEST AIRLINES COluv-9302016xex321.htm
EX-31.2 - CERTIFICATION OF CHIEF FINANCIAL OFFICER - SOUTHWEST AIRLINES COluv-9302016xex312.htm
EX-31.1 - CERTIFICATION OF CHIEF EXECUTIVE OFFICER - SOUTHWEST AIRLINES COluv-9302016xex311.htm
EX-10.6 - EXHIBIT 10.6 - SOUTHWEST AIRLINES COluv-9302016xex106.htm
EX-10.5 - EXHIBIT 10.5 - SOUTHWEST AIRLINES COluv-9302016xex105.htm
EX-10.3 - SUPPLEMENTAL AGREEMENT NO. 97 - SOUTHWEST AIRLINES COluv-9302016xex103.htm
EX-10.2 - SUPPLEMENTAL AGREEMENT NO. 96 - SOUTHWEST AIRLINES COluv-9302016xex102.htm

Supplemental Agreement No. 95
 
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. 95 (SA-95) is entered into as of July 21, 2016, 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-95 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, Buyer has elected to exercise Buyer’s right to purchase one (1) Option Aircraft with scheduled delivery month in 2018 (Exercised Option Aircraft) in accordance with the terms set forth in Letter Agreement SWA-PA-1810-LA-1105884R2, Option Aircraft;

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 Tables and Letter Agreements revised by this SA-95 and is identified by “SA-95”. 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-95-1
 
 
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 addition of the Exercised Option Aircraft.

3.
LETTER AGREEMENTS.

Attachment B to Letter Agreement SWA-PA-1810-LA-1105884R2, Option Aircraft, is deleted in its entirety and replaced by a new Attachment B (attached). The new Attachment B reflects the deletion of the Exercised Option Aircraft.

4.
***






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/ Jon W Lewis
By: /s/ Chris Monroe
 
          Chris Monroe
Its: Attorney‑In‑Fact
Its: VP, Treasurer







P.A. No. 1810
                SA-95-2
 
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
7-1
SA-73
 
Specification
 
 
 
 
8-1
 
8.
Federal Aviation Requirements and
 
 
 
Certificates and Export License
 
 
 
 
 
 
9.
Representatives, Inspection,
9-1
 
 
Flights and Test Data
 
 
 
 
 
 
10.
Assignment, Resale or Lease
10-1
 
 
 
 
 
11.
Termination for Certain Events
 
 
 
 
 
 
12.
Product Assurance; Disclaimer and
11‑1
 
 
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-95

 
TABLE OF CONTENTS

 
 
 
SA
 
 
Number



    

 TABLE
 
 
 
 
 
1b
Aircraft Information Table - Block 800LUV Aircraft
SA-82
 
 
 
1c
Aircraft Information Table - Block 800LUV Aircraft
SA-94
 
(non-ETOPS Configuration)
 
 
 
 
1d
Aircraft Information Table - Block 800LUV Aircraft
SA-95
 
(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-92
 
 
 
F
Defined Terms Document
 

     
LETTER AGREEMENTS
 
 
 
 
1810-1R1
Waiver of Aircraft Demonstration Flight
SA-75



P.A. No. 1810
ii
 
K/SWA
 
SA-95

 
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-94
 
 
 
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-1105884R2
Option Aircraft
SA-92
 
Attachment A - Model 737-8H4 Aircraft
SA-92
 
Attachment B - Option Aircraft Information Table
SA-95
 
 
 
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


P.A. No. 1810
iii
 
K/SWA
 
SA-95

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
D-1
Price Adjustment Due to Economic Fluctuations -
SA-13
Inactive


P.A. No. 1810
iv
 
K/SWA
 
SA-95

TABLE OF CONTENTS


Exhibits
Title
Last Updated under SA
Current Status
 
Aircraft Price Adjustment (July 1999 Base Price)
 
 
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
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





P.A. No. 1810
v
 
K/SWA
 
SA-95

TABLE OF CONTENTS


Letter Agreement
Title
Last Updated under SA
Current Status
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-01810/03729LA- 1301169
***
SA-2 to PA 3729
Inactive



P.A. No. 1810
vi
 
K/SWA
 
SA-95

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
 
Base Aircraft 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:
***
 
 
 
 
 
Engine Price (Per Aircraft):
***
 
Aircraft Price Escalation Data:
 
 
 
Aircraft Basic Price (Excluding BFE/SPE):
***
 
Base Year Index (ECI):
***
 
 
Buyer Furnished Equipment (BFE) Estimate:
***
 
Base Year Index (CPI):
***
 
 
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
***
***
***
***
***
Jul-2017
1
***
63571
***
 
***
***
***
***
***
Jul-2017
2
***
63595, 63596
***
OPEX
***
***
***
***
***
Aug-2017
1
***
63587
***
 
***
***
***
***
***
Sep-2017
1
***
63586
***
 
***
***
***
***
***
Sep-2017
5
***
63572, 63573,
63574, 63575,
63576
***
 
***
***
***
***
***
Oct-2017
3
***
63577, 63578,
63579
***
 
***
***
***
***
***
Oct-2017
1
***
63,597
***
OPEX
***
***
***
***
***
Nov-2017
2
***
63580, 63581
***
 
***
***
***
***
***
Nov-2017
2
***
63598, 63599
***
OPEX
***
***
***
***
***




 
 
SA-95
SWA-PA-01810 82233 / 88233

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

***
Dec-2017
2
***
63582, 63583
***
 
***
***
***
***
***
Dec-2017
4
***
63600, 63601,
63602, 36993
***
OPEX
***
***
***
***
***
Jan-2018
1
***
64115
***
OPEX
***
***
***
***
***
Jan-2018
2
***
63584, 63585
***
 
***
***
***
***
***
May-2018
2
***
63588, 63589
***
 
***
***
***
***
***
Jun-2018
2
***
63590, 63591
***
 
***
***
***
***
***
Total:
34
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
 
 
 
1) ***
 
 
 
 
 
 
 
 
 
 

 
 
SA-95
SWA-PA-01810 82233 / 88233

Boeing Proprietary
Page 2

Attachment B To
Letter Agreement SWA-PA-1810-LA-1105884R2
Option Aircraft Delivery, Description, Price and Advance Payments
 


 

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


Delivery

Date


Number of

Aircraft

Escalation

Factor

(Airframe)

Option

Exercise

Date

 

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

***
Feb-2018
2
***
8/1/2016
 
***
***
***
***
***
Mar-2018
1
***
9/1/2016
 
***
***
***
***
***
Apr-2018
1
***
10/1/2016
 
***
***
***
***
***
May-2018
2
***
11/1/2016
 
***
***
***
***
***
Jun-2018
2
***
12/1/2016
 
***
***
***
***
***
Jul-2018
2
***
1/1/2017
 
***
***
***
***
***
Aug-2018
3
***
2/1/2017
 
***
***
***
***
***
Sep-2018
1
***
3/1/2017
 
***
***
***
***
***
Oct-2018
1
***
4/1/2017
 
***
***
***
***
***
Nov-2018
1
***
5/1/2017
 
***
***
***
***
***
Dec-2018
1
***
6/1/2017
 
***
***
***
***
***
Total:
17
 
 
 
 
 
 
 
 


 
 
SA-95
SWA-PA-01810 82233-1F.TXT
Boeing Proprietary
Page 1

Stock widget

Investing forum

SOUTHWEST AIRLINES CO Reports