EX-4.7 6 v219342_ex4-7.htm Unassociated Document
* * * Indicates confidential material omitted pursuant to a request for confidential treatment and filed with the Securities and Exchange Commission separately with a request for confidential treament
 
Supplemental Agreement No. 1
 
to
 
Purchase Agreement No. 3323
 
between
 
THE BOEING COMPANY
 
and
 
XIAMEN AIRLINES
 
Relating to Boeing Model 737-85C Aircraft
 
THIS SUPPLEMENTAL AGREEMENT, entered into as of the 30 day of Sept, 2010, by and between THE BOEING COMPANY, (Boeing) and XIAMEN AIRLINES with its principal office in the city of Xiamen, Fujian Province, People's Republic of China (Buyer);
 
WITNESSETH:
 
WHEREAS, the parties hereto entered into Purchase Agreement No. 3323 dated April 18, 2008, relating to Boeing Model 737-85C aircraft (the Aircraft), which agreement, as amended, together with all exhibits and specifications attached thereto and made a part thereof, is hereinafter called the "Purchase Agreement;" and
 
WHEREAS, the parties desire to further amend the Purchase Agreement as set forth herein in order to add ten (10) additional aircraft (Block C Aircraft), and
 
WHEREAS, The parties desire to further amend the Purchase Agreement as set forth herein in order to delete the existing Table 1. Aircraft Information Table, and replace it with Table 2 for Block A, Block B aircraft, and add Table 3 for Block C Aircraft, and
 
WHEREAS, The parties desire to further amend the Purchase Agreement as set forth herein in order to delete the existing Exhibit A, Aircraft Configuration, and replace it with a new Exhibit Al for Block A, Block B aircraft, and add the Exhibit A2 for Block C Aircraft, and

P.A. No. 3323
S.A. 1
  
 
 
 
 
 
WHEREAS, the parties desire to further amend the Purchase Agreement as set forth herein in order to delete the existing Supplemental Exhibit BFE1, BFE Variables and replace it with a new Supplemental Exhibit BFE1, BFE Variables, and
 
WHEREAS, the parties desire to further amend the Purchase Agreement as set forth herein in order to add Letter Agreement 6-1165-LY-403, Special Matters, Block C Aircraft, and
 
WHEREAS, the parties desire to further amend the Purchase Agreement as set forth herein in order to add Letter Agreement 6-1165-LY-404, Aircraft Performance Gurantees, Block C Aircraft, and
 
WHEREAS, the parties desire further to amend the Purchase Agreement as set forth herein in order to add Letter Agreement 6-1165-LY-405, Payment Matters, Block C Aircraft, and
 
WHEREAS, the parties desire to further amend the Purchase Agreement as set forth herein in order to add Letter Agreement 6-1165-LY-407, Special Escalation Program, Block C Aircraft, and
 
NOW THEREFORE, in consideration of the mutual covenants contained herein, the parties agree to amend the Purchase Agreement as follows:
 
 
1. 
Table of Contents.
 
The Table of Contents is deleted in its entirety and a new Table of Contents is inserted in lieu thereof.
 
 
2. 
Table 2, Block A, Block B Aircraft Delivery, Price and Advance Payments.
 
Table 1. Delivery, Price and Advance Payments is deleted in its entirely and Table 2 is inserted in lieu thereof.
 
 
3. 
Table 3, Block C Aircraft Delivery. Price and Advance Payments.
 
A new Table 3, Block C Aircraft, Delivery, Price and Advance Payments is added to the Purchase Agreement.
 
 
4. 
Exhibit A, Aircraft Configuration
 
Exhibit A, Aircraft Configuration, Block A & Block B aircraft is deleted in its entirety and a new Exhibit Al to include Boeing Sky Interior features is inserted in lieu thereof. Exhibit A2, Aircraft Configuration. Block C Aircraft is added to the Purchase Agreement

P.A. No. 3323
S.A. 1
  
 
 
 
 
 
 
5. 
Supplemental Exhibit BFE1, BFE Variables.
 
Supplemental Exhibit BFE1, BFE Variables is deleted in its entirety and a new Supplemental Exhibit BFE1, BFE Variables is inserted in lieu thereof.
 
 
6. 
Letter Agreement 6-1165-LY-403, Special Matters, Block C Aircraft
 
Letter Agreement 6-1165-LY-403, Special Matters, Block C Aircraft, is added to the Purchase Agreement
 
 
7.
Letter Agreement 6-1165-LY-404, Aircraft Performance Gurantee, Block C Aircraft
 
Letter Agreement 6-1165-LY-404, Aircraft Performance Gurantee, Block C Aircraft, is added to the Purchase Agreement
 
 
8. 
Letter Agreement 6-1165-LY-405, Payment Matters, Block C Aircraft.
 
Letter Agreement 6-1165-LY-405, Payment Matters, Block C Aircraft, is added to the Purchase Agreement.
 
 
9. 
Letter Agreement 6-1165-LY-407, Special Escalation Program, Block C Aircraft.
 
Letter Agreement 6-1165-LY-407, Special Escalation Program, Block C Aircraft is added to the Purchase Agreement.

P.A. No. 3323
S.A. 1
  

 
 
 
 
The Purchase Agreement shall be amended to the extent provided herein and, as so amended, shall continue in full force and effect.
 
EXECUTED as of the day and year first above written.

THE BOEING COMPANY
 
By
 
Its 
Attorney-In-Fact
 
XIAMEN AIRLINES
 
By
 
Its 
   

P.A. No. 3323
S.A. 1
  
 
 
 
 
 
TABLE OF CONTENTS
 
 
    
SA
NUMBER
ARTICLES
      
       
1.
  
Quantity, Model and Description
  
       
2.
  
Delivery Schedule
  
       
3.
  
Price
  
       
4.
  
Payment
  
       
5.
  
Miscellaneous
  
       
TABLE
      
       
1.
  
Aircraft Information Deleted by
SA 1
       
2.
  
Aircraft Information Table, Block A, Blcok B Aircraft
SA 1
       
3.
  
Aircraft Information Table, Block C Aircraft
SA 1
       
EXHIBIT
      
       
A.
  
Aircraft Configuration Deleted by
SA 1
       
Al
  
Aircraft Configuration, Block A, B Aircraft
SA 1
       
A2.
  
Aircraft Configuration, Block C Aircraft
SA 1
       
B.
  
Aircraft Delivery Requirements and Responsibilities
  
       
SUPPLEMENTAL EXHIBITS
  
   
AE1.
  
Escalation Adjustment/Airframe and Optional Features
  
       
BFE1.
  
BFE Variables Deleted by
SA 1
       
BEF
  
BEF Variables, Block A, Block and Block C Aircraft
SA 1
       
CS1.
  
Customer Support Variables
  
       
EE1.
  
Engine Escalation/Engine Warranty and Patent Indemnity
  

P.A. No. 3323

BOEING PROPRIETARY
 
 
 
 
 
SLP1.    Service Life Policy Components
  
   
LETTER AGREEMENTS
  
       
3323-01
  
737 Spare Parts Initial Provisioning
  
       
3323-02
  
Aircraft Model Substitution
  
       
3323-03
  
Boeing Purchase of Buyer Furnished Equipment
  
       
3323-04
  
Government Approval
  
       
3323-05
  
Loading of Customer Software
  
       
3323-06
  
Right to Purchase Additional Aircraft
  
       
3323-07
  
Seller Purchased Equipment
  
       
3323-08
  
Special Matters
  
       
6-1165-LY-403
  
Special Matters, Block C Aircraft
SA 1
       
6-1165-CKR-1446
  
Liquidated Damages Non-Excusable Delay
  
       
6-1165-CKR-1447
  
Aircraft Performance Guarantees
  
       
6-1165-LY-404
  
Aircraft Performance Gurantees, Block C Aircraft
SA 1
       
6-1165-CKR-1448
  
Promotional Support (Follow-on Aircraft)
  
       
6-1165-CKR-1449
  
Volume Agreement
  
       
6-1165-CKR-1450
  
Payment Matters
  
       
6-I165-LY-405
  
Payment Matters, Block C Aircraft
SA 1
       
6-1165-CKR-1451
  
Shareholder Approval
  
       
6-1165-CKR-1452
  
Clarifications and Understandings
  
       
6-1165-CKR-1454
  
Special Escalation Program
  
       
6-1165-LY-407
  
Special Escalation Program, Block C Aircraft
SA 1

P.A. No. 3323

BOEING PROPRIETARY
 
 
 
 
 
Table 2 To
Purchase Agreement No. PA-03323
Aircraft Delivery, Description, Price and Advance Payment
(Block A, Block B Aircraft)
 
Airframe Model/MTOW:
737-800
171500 pounds
Detail Specification:
DO19A001X1A38P-TBD (BSI) (1/29/2010)
Engine Model/Thrust:
CFM56-7B24
24000 pounds
Airframe Price Base Year/Escalation Formula:
Jul-07
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 (ECl):
   ***  
Aircraft Basic Price (Excluding BFE/SPE):
 ***
Base Year Index (CPI):
   ***  
Buyer Furnished Equipment (BFE) Estimate:
 ***        
Seller Purchased Equipment (SPE) Estimate:
 ***        
           
Deposit per Aircraft:
$105,000
        
 
   
Escalation
    
Escalation Estimate
 Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
Delivery
Number of
Factor
    
Adv Payment Base
At Signing
24 Mos.
21/18/12/9/6 Mos.
Total
Date
Aircraft
(Airframe)
    
Price Per A/P
1%
4%
5%
30%
Jan-2014
   1 ***                             *** *** *** *** ***
Apr-2014
   1 ***     *** *** *** *** ***
May-2014
   1 ***     *** *** *** *** ***
Jun-2014
   1 ***     *** *** *** *** ***
Jul-2014
   2 ***     *** *** *** *** ***
Aug-2014
   1  ***     *** *** *** *** ***
Sep-2014
   1 ***     *** *** *** *** ***
Oct-2014
   1 ***     *** *** *** *** ***
Jan-2015
   1 ***     *** *** *** *** ***
Mar-2015
   1 ***     *** *** *** *** ***
May-2015
   1 ***     *** *** *** *** ***
Jun-2015
   1 ***     *** *** *** *** ***
Jul-2015
   2 ***     *** *** *** *** ***
 
XIA-PA-03323 55021-1F.TXT
Boeing Proprietary
Page 1
 
 
 
 
 
Table 2 To
Purchase Agreement No. PA-03323
Aircraft Delivery, Description, Price and Advance Payment
(Block A, Block B Aircraft)

   
Escalation
    
Escalation Estimate
 Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
Delivery
Number of
Factor
    
Adv Payment Base
At Signing
24 Mos.
21/18/12/9/6 Mos.
Total
Date
Aircraft
(Airframe)
    
Price Per A/P
1%
4%
5%
30%
Aug-2015
2
 ***                             *** *** *** *** ***
Sep-2015
1
 ***     *** * * * *** *** ***
Oct-2015
2
 ***     *** *** *** *** ***
Total:
20
                
 
XIA-PA-03323 55021-1F.TXT
Boeing Proprietary
Page 2

 
 
 
 
Table 3 To
Purchase Agreement No. PA-03323
Aircraft Delivery, Description, Price and Advance Payments
(Block C Aircraft)
 
Airframe Model/MTOW:
737-800
171500 pounds
Detail Specification:
XIA BSI SPEC TBD (1/29/2010)
Engine Model/Thrust:
CFM56-7B24
24000 pounds
Airframe Price Base Year/Escalation Formula:
  Jul-08
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 Aircraft:
$110,000
        

   
Escalation
    
Escalation Estimate
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
Delivery
Number of
Factor
    
Adv Payment Base
At Signing
24 Mos.
21/18/12/9/6 Mos.
Total
Date
Aircraft
(Airframe)
    
Price Per A/P
1%
4%
5%
30%
Jul-2015
1
 ***     *** *** *** *** ***
Aug-2015
1
 ***     *** *** *** *** ***
Sep-2015
2
 ***     *** *** *** *** ***
Oct-2015
1
 ***     *** *** *** *** ***
Dec-2015
1
 ***     *** *** *** *** ***
Jan-2016
4
 ***     *** *** *** *** ***
Total:
10
                
 
XIA-PA-03323 55373-1F.TXT
Boeing Proprietary
Page 1
 
 
 
 
 
Exhibit Al_Block A, Block B Aircraft
BOEING PROPRIETARY
9/6/2010-8:34 PM    
 
CR
  
***
Title
  
2007 $
Price
Per A/C
         
         
         
 
P.A. 3323 SA 1
BOEING PROPRIETARY
Page 1
 
 
 
 
 
Exhibit A1_Block A, Block B Aircraft
BOEING PROPRIETARY
9/6/2010-8:34 PM      
 
CR
  
***
Title
  
2007 $
Price
Per A/C
 
  
  
  
  
         
         

P.A. 3323 SA 1
BOEING PROPRIETARY
Page 2
 
 
 
 

Exhibit A1_Block A, Block B Aircraft
BOEING PROPRIETARY
9/6/2010-8:34 PM     
 
CR
  
***
Title
  
2007 $
Price
Per A/C
         
         
         

P.A. 3323 SA 1
BOEING PROPRIETARY
Page 3
 
 
 
 

Exhibit A1_Block A, Block B Aircraft
BOEING PROPRIETARY
9/6/2010-8:34 PM      
 
CR
  
***
Title
  
2007 $
Price
Per A/C
         
         
         

P.A. 3323 SA 1
BOEING PROPRIETARY
Page 4
 
 
 
 

Exhibit A1_Block A, Block B Aircraft
BOEING PROPRIETARY
9/6/2010-8:34 PM      
 
CR
  
***
Title
  
2007 $
Price
Per A/C
         
         
         

P.A. 3323 SA 1
BOEING PROPRIETARY
Page 5
 
 
 
 

Exhibit A2_Block C Aircraft
BOEING PROPRIETARY
9/6/2010-8:36 PM     
 
CR
  
***
Title
  
2008 $
Price
Per A/C
         
         
         

P.A. 3323 SA 1
BOEING PROPRIETARY
Page 1
 
 
 
 

Exhibit A2_Block C Aircraft
BOEING PROPRIETARY
9/6/2010-8:36 PM      
 
CR
  
***
Title
  
2008 $
Price
Per A/C
         
         
         

P.A. 3323 SA 1
BOEING PROPRIETARY
Page 2
 
 
 
 

Exhibit A2_Block C Aircraft
BOEING PROPRIETARY
9/6/2010-8:36 PM      
 
CR
  
***
Title
  
2008 $
Price
Per A/C
         
         
         

P.A. 3323 SA 1
BOEING PROPRIETARY
Page 3
 
 
 
 

Exhibit A2_Block C Aircraft
BOEING PROPRIETARY
9/6/2010-8:36 PM      
 
CR
  
***
Title
  
2008 $
Price
Per A/C
         
         
         

P.A. 3323 SA 1
BOEING PROPRIETARY
Page 4
 
 
 
 

Exhibit A2_Block C Aircraft
BOEING PROPRIETARY
9/6/2010-8:36 PM      
 
CR
  
***
Title
  
2008 $
Price
Per A/C
         
         
         

P.A. 3323 SA 1
BOEING PROPRIETARY
Page 5
 
 
 
 

 
BUYER FURNISHED EQUIPMENT VARIABLES

between

THE BOEING COMPANY

and

XIAMEN AIRLINES

Supplemental Exhibit BFE1 to Purchase Agreement Number 3323

P.A. No. 3323
BFE1-1
SA 1
 
BOEING PROPRIETARY
  
 
 
 
 

BUYER FURNISHED EQUIPMENT VARIABLES
 
relating to
 
BOEING MODEL 737 AIRCRAFT

This Supplemental Exhibit BFE1 contains vendor selection dates, on-dock dates and other variables applicable to the Aircraft.

1.
Supplier Selection.

Customer will:

1.1           Select and notify Boeing of the suppliers and part numbers of the following BFE items by the following dates:

Galley System
  
January 2, 2013     
     
Galley Inserts
  
January 2, 2013      
     
Seats (passenger)
  
November 1, 2012 
     
Overhead & Audio System
  
February 1, 2013   
     
In-Seat Video System
  
November 1, 2012 
     
Miscellaneous Emergency Equipment
  
February 1, 2013    
     
Cargo Handling Systems
  
February 1, 2013    

P.A. No. 3323
BFE1-2
SA 1
 
BOEING PROPRIETARY
  
 
 
 
 

2.
On-dock Dates

On or before April 2013, Boeing will provide to Customer a BFE Requirements On-Dock/Inventory Document (BFE Document) or an electronically transmitted BFE Report which may be periodically revised, setting forth the items, quantities, on-dock dates and shipping instructions relating to the in-sequence installation of BFE. For planning purposes, a preliminary BFE on-dock schedule is set forth below:

Item
  
Preliminary On-Dock Dates
   
[Month of Delivery]
         
   
January 2014
  
April 2014
   
Aircraft
  
Aircraft
Seats
  
11/18/2013
  
2/21/2014
Galleys/Furnishings
  
11/4/2013
  
2/14/2014
Antenna and Mounting Equipment
  
9/20/2013
  
12/20/2013
Avionics
  
11/4/2013
  
2/14/2014
Cabin Systems Equipment
  
11/4/2013
  
2/14/2014
Miscellaneous Emergeny Equipment
  
11/4/2013
  
2/14/2014
Textiles/Raw Material
  
7/22/2013
  
10/23/2013
Cargo Systems
  
10/21//2013
  
1/28/2014
Provision Kits
  
6/24/2013
  
9/27/2013
Radomes
  
9/13/2013
  
12/13/2013

P.A. No. 3323
BFE1-3
SA 1
 
BOEING PROPRIETARY
  
 
 
 
 

Item
  
Preliminary On-Dock Dates
   
[Month of Delivery]
         
   
May 2014
Aircraft
  
June 2014
Aircraft
Seats
  
3/21/2014
  
4/22/2014
Galleys/Furnishings
  
3/14/2014
  
4/15/2014
Antenna and Mounting Equipment
  
1/21/2014
  
2/21/2014
Avionics
  
3/14/2014
  
4/15/2014
Cabin Systems Equipment
  
3/14/2014
  
4/15/2014
Miscellaneous Emergeny Equipment
  
3/14/2014
  
4/15/2014
Textiles/Raw Material
  
11/23/2013
  
1/9/2014
Cargo Systems
  
2/28/2014
  
4/2/2014
Provision Kits
  
10/28/2013
  
12/2/2013
Radomes
  
1/14/2014
  
3/14/2014

Item
  
Preliminary On-Dock Dates
   
[Month of Delivery]
         
   
July 2014 (2)
Aircraft
  
August 2014
Aircraft
Seats
  
5/21/2014
  
6/20/2014
Galleys/Furnishings
  
5/14/2014
  
6/13/2014
Antenna and Mounting Equipment
  
3/21/2014
  
4/21/2014
Avionics
  
5/14/2014
  
6/13/2014
Cabin Systems Equipment
  
5/14/2014
  
6/13/2014
Miscellaneous Emergeny Equipment
  
5/14/2014
  
6/13/2014
Textiles/Raw Material
  
2/7/2014
  
3/10/2014
Cargo Systems
  
5/1/014
  
5/30/2014
Provision Kits
  
1/2/2014
  
1/30/2014
Radomes
  
4/14/2014
  
5/13/2014

P.A. No. 3323
BFE1-4
SA 1
 
BOEING PROPRIETARY
  
 
 
 
 
 
Item
  
Preliminary On-Dock Dates
   
[Month of Delivery]
         
   
September 2014
Aircraft
  
October 2014
Aircraft
Seats
  
7/23/2014
  
8/21/2014
Galleys/Furnishings
  
7/16/2014
  
8/14/2014
Antenna and Mounting Equipment
  
5/23/2014
  
6/20/2014
Avionics
  
7/16/2014
  
8/14/2014
Cabin Systems Equipment
  
7/16/2014
  
8/14/2014
Miscellaneous Emergeny Equipment
  
7/16/2014
  
8/14/2014
Textiles/Raw Material
  
4/9/2014
  
5/8/2014
Cargo Systems
  
7/2/2014
  
7/31/2014
Provision Kits
  
3/3/2014
  
3/31/2014
Radomes
  
6/16/2014
  
7/14/2014

Item
  
Preliminary On-Dock Dates
   
[Month of Delivery]
         
   
January 2015
Aircraft
  
March 2015
Aircraft
Seats
  
11/18/2014
  
1/22/2015
Galleys/Furnishings
  
11/11/2014
  
1/15/2015
Antenna and Mounting Equipment
  
9/18/2014
  
11/23/2014
Avionics
  
11/11/2014
  
1/15/2015
Cabin Systems Equipment
  
11/11/2014
  
1/15/2015
Miscellaneous Emergeny Equipment
  
11/11/2014
  
1/15/2015
Textiles/Raw Material
  
8/4/2014
  
9/30/2014
Cargo Systems
  
10/28/2014
  
1/2/2015
Provision Kits
  
6/27/2014
  
9/2/2014
Radomes
  
9/11/2014
  
12/15/2014

P.A. No. 3323
BFE1-5
SA 1
 
BOEING PROPRIETARY
  
 
 
 
 

Item
  
Preliminary On-Dock Dates
   
[Month of Delivery]
         
   
May 2015
Aircraft
  
June 2015
Aircraft
Seats
  
3/20/2015
  
4/22/2015
Galleys/Furnishings
  
3/13/2015
  
4/15/2015
Antenna and Mounting Equipment
  
1/20/2015
  
2/23/2015
Avionics
  
3/13/2015
  
4/15/2015
Cabin Systems Equipment
  
3/13/2015
  
4/15/2015
Miscellaneous Emergeny Equipment
  
3/13/2015
  
4/15/2015
Textiles/Raw Material
  
11/21/2014
  
1/9/2015
Cargo Systems
  
2/27/2015
  
4/1/2015
Provision Kits
  
10/28/2014
  
12/1/2014
Radomes
  
1/14/2015
  
3/16/2015

Item
  
Preliminary On-Dock Dates
   
[Month of Delivery]
         
   
July 2015 (3)
Aircraft
  
August 2015 (3)
Aircraft
Seats
  
5/20/2015
  
6/22/2015
Galleys/Furnishings
  
5/13/2015
  
6/15/2015
Antenna and Mounting Equipment
  
3/20/2015
  
4/15/2015
Avionics
  
5/13/2015
  
6/15/2015
Cabin Systems Equipment
  
5/13/2015
  
6/15/2015
Miscellaneous Emergeny Equipment
  
5/13/2015
  
6/15/2015
Textiles/Raw Material
  
2/6/2015
  
4/24/2015
Cargo Systems
  
4/29/2015
  
6/1/2015
Provision Kits
  
12/23/2014
  
2/2/2015
Radomes
  
4/13/2015
  
5/15/2015

P.A. No. 3323
BFE1-6
SA 1
 
BOEING PROPRIETARY
  
 
 
 
 

Item
  
Preliminary On-Dock Dates
   
[Month of Delivery]
         
   
September 2015 (3)
Aircraft
  
October 2015 (3)
Aircraft
Seats
  
7/23/2015
  
8/21/2015
Galleys/Furnishings
  
7/16/2015
  
8/14/2015
Antenna and Mounting Equipment
  
5/22/2105
  
6/22/2015
Avionics
  
7/16/2015
  
8/14/2015
Cabin Systems Equipment
  
7/16/2015
  
8/14/2015
Miscellaneous Emergeny Equipment
  
7/16/2015
  
8/14/2015
Textiles/Raw Material
  
4/9/2015
  
5/8/2015
Cargo Systems
  
7/2/2015
  
7/31/2015
Provision Kits
  
3/2/2015
  
3/31/2015
Radomes
  
6/16/2015
  
8/21/2015

Item
  
Preliminary On-Dock Dates
   
[Month of Delivery]
         
   
December 2015
Aircraft
  
January 2016 (4)
Aircraft
Seats
  
10/22/2015
  
11/18/2015
Galleys/Furnishings
  
10/15/2015
  
11/11/2015
Antenna and Mounting Equipment
  
8/21/2015
  
9/18/2015
Avionics
  
10/15/2015
  
11/11/2015
Cabin Systems Equipment
  
10/15/2015
  
11/11/2015
Miscellaneous Emergeny Equipment
  
10/15/2015
  
11/11/2015
Textiles/Raw Material
  
7/10/2015
  
8/6/2015
Cargo Systems
  
10/1/2015
  
10/28/2105
Provision Kits
  
6/1/2015
  
6/29/2015
Radomes
  
9/15/2015
  
10/12/2015

P.A. No. 3323
BFE1-7
SA 1
 
BOEING PROPRIETARY
  
 
 
 
 

Customer will be the “importer of record” (as defined by the U.S. Customs and Border Protection) for all BFE imported into the United States, and as such, it has the responsibility to ensure all of Customer’s BFE shipments comply with U.S. Customs Service regulations. In the event Customer requests Boeing, in writing, to act as importer of record for Customer’s BFE, and Boeing agrees to such request, Customer is responsible for ensuring Boeing can comply with all U.S. Customs Import Regulations by making certain that, at the time of shipment, all BFE shipments comply with the requirements in the “International Shipment Routing Instructions”, including the Customs Trade Partnership Against Terrorism (C-TPAT), as set out on the Boeing website referenced below. Customer agrees to include the International Shipment Routing Instructions, including C-TPAT requirements, in each contract between Customer and BFE supplier.

http://www.boeing.com/companyoffices/doingbiz/supplier_portal/index_general.html
 
P.A. No. 3323
BFE1-8
SA 1
 
BOEING PROPRIETARY
  
 
 
 
 

 
The Boeing Company
P.O. Box 3707
Seattle, WA 93124-2207
 
6-1165-LY-403
 
Xiamen Airlines
22 Dailiao Road
Xiamen, 361006
Fujian Province
People’s Republic of China
Subject:
Special Matters
     
  Reference:
Purchase Agreement No. 3323 (the Purchase Agreement) between The Boeing Company (Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C Block C aircraft (Aircraft)
   
 
This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement. All terms used but not defined in this Letter Agreement have the same meaning as in the Purchase Agreement.
 
1.         Escalatable Dollar Credit Memoranda.    Boeing will provide the following credit memoranda at the time of delivery of each Aircraft. These credit memoranda are expressed in July 2008 base year dollars, and are subject to escalation in accordance with the applicable escalation provisions of the Purchase Agreement.
 
  1.1    Special Credit Memorandum.
           *** 
 
 
  1.2    Customer Support Credit Memorandum.
           ***
 
 

 
P.A. No. 3323
  
SA 1
 
Special_Matters
    
   
BOEING PROPRIETARY
  

 
 
 
 
 
Xiamen Airlines
6-1165-LY-403
Page 2
 
  1.3    Customer Loyalty Credit Memorandum.
                      
                       ***
 
 
 
2.         Assignment.     The Credit Memoranda described in this Letter Agreement are provided as a financial accommodation to Customer in consideration of Customer’s becoming the operator of the Aircraft, and cannot be assigned, in whole or in part, without the prior written consent of The Boeing Company.
 
3.         Confidential Treatment.    Customer understands that the commercial and financial information contained in this Letter Agreement is considered by Boeing as confidential. Customer agrees that it will treat this Letter Agreement and the information contained herein as confidential and will not, without the prior written consent of Boeing, disclose this Letter Agreement or any information contained herein to any other person or entity except (a) as required by applicable law, governmental regulation or judicial process, (b) with the consent of Boeing, (c) to the counsel of providers of financing in connection with the Aircraft (each a "Finance Party"), (d) to bank examiners and auditors, (e) to any Finance Party or to any person with whom any Finance Party is in good faith conducting negotiations relating to the possible transfer and sale of such Finance Party's interest in the relevant Aircraft, if such entities described in (c), (d) and (e) shall have entered into an agreement similar to that contained in this clause whereby such entity agrees to hold such information confidential.

 
P.A. No. 3323
  
SA 1
 
Special_Matters
    
   
BOEING PROPRIETARY
  

 
 
 
 
 
Xiamen Airlines
6-1165-LY-403
Page 3
 
  
     
 
Very truly yours,
  
       
 
THE BOEING COMPANY
  
     
  By    
 
 
 
Its
Attorney-In-Fact
  
 
  ACCEPTED AND AGREED TO this  
       
  Date: Sept. 30, 2010  
       
 
XIAMEN AIRLINES
 
  
       
 
By
    
       
 
Its
    
 
 
 
 
P.A. No. 3323
  
SA 1
 
Special_Matters
    
   
BOEING PROPRIETARY
  
 
 
 
 
 
 
The Boeing Company
P.O Box 3707
Seattle, WA 98124-2207
 
6-1165-LY-404
 
Xiamen Airlines
22 Dailiao Road
Xiamen, 361006
Fujian Province
People’s Republic of China
Subject: Aircraft Performance Guarantees
     
  Reference: Purchase Agreement No. 3323 (the Purchase Agreement) between The Boeing Company (Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C Block C aircraft (the Aircraft)
     
 
This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement. All terms used but not defined in this Letter Agreement have the same meaning as in the Purchase Agreement.
 
Boeing agrees to provide Customer with the performance guarantees in the Attachment These guarantees are exclusive and expire upon delivery of the Aircraft to Customer.
 
Boeing and Customer understand that certain information contained in this Letter Agreement is considered to be confidential. The parties agree that they will treat this Letter Agreement and the information contained herein as confidential and will not, without the prior written consent of the other party, disclose this Letter Agreement or any information contained herein to any other person or entity except, (1) to those of their respective legal counsel, auditors, accountants, insurance brokers and other advisers who have a need to know the information for purposes of interpreting Customer's rights or interpreting or performing Customer's obligations under the Purchase Agreement, subject to such parties' written agreements that they will treat the information as confidential, (2) to a bank for the sole purpose of financing of the purchase of such Aircraft and subject to such bank's written agreement that it will treat the information as confidential, (3) as required by the rules of any stock market applicable to the parties on condition that the party wishing to make such disclosure shall first use reasonable efforts to seek relief from the risk of disclosure to competitors or others with whom either of the parties has business relations of information which might be detrimental to the interest of either of the parties, or (4) as may be required by applicable law.

 
P.A. No. 3323
SA 1
 
Aircraft_Performance_Guarantees_Block C Aircraft
  
   
BOEING PROPRIETARY
  

 
 
 
 
 
Xiamen Airlines
6-1165-LY-404
Page 2
  
 
 
 
  
 
Very truly yours,
  
       
 
THE BOEING COMPANY
 
 
  
  By    
 
 
Its
Attorney-In-Fact
  
 
  ACCEPTED AND AGREED TO this  
  Date: Sept. 30, 2010  
       
  XIAMEN AIRLINES  
       
 
By
    
       
 
Its
    
 
 
 
 
P.A. No. 3323
SA 1
 
Aircraft_Performance_Guarantees_Block C Aircraft
  
   
BOEING PROPRIETARY
  

 
 
 
 
Attachment to Letter Agreement
No. 6-1165-LY-404
CFM56-7B24E Engines
Page 1
 
MODEL 737-800 WITH WINGLETS PERFORMANCE GUARANTEES
 
FOR XIAMEN AIRLINES

SECTION
  
CONTENTS
  
       
1
  
AIRCRAFT MODEL APPLICABILITY
  
       
2
  
FLIGHT PERFORMANCE
  
       
3
  
MANUFACTURER'S EMPTY WEIGHT
  
       
4
  
AIRCRAFT CONFIGURATION
  
       
5
  
GUARANTEE CONDITIONS
  
       
6
  
GUARANTEE COMPLIANCE
  
       
7
  
EXCLUSIVE GUARANTEES
  
 
 
 
P.A. No. 3323
    
AERO-B-BBA4-M10-0591
  
SS10-0338
 
BOEING PROPRIETARY
  

 
 
 
 
Attachment to Letter Agreement
No. 6-1165-LY-404
CFM56-7B24E Engines
Page 2

1
AIRCRAFT MODEL APPLICABILITY
 
                        ***
 
2
FLIGHT PERFORMANCE
 
                        ***
 
2.1
Takeoff
 
                        ***
 
2.2
Landing
 
                        ***
 
2.3
Speed
 
                        ***
 
P.A. No. 3323
    
AERO-B-BBA4-M10-0591
  
SS10-0338
 
BOEING PROPRIETARY
  

 
 
 
 
Attachment to Letter Agreement
No. 6-1165-LY-404
CFM56-7B24E Engines
Page 3
 
2.4
Cruise Fuel Mileage
 
                        ***
 
2.5
Mission
 
                        ***
 
2.5.1
Mission Payload
 
                        ***
 
PA. No. 3323
    
AERO-B-BBA4-M10-0591
  
SS10-0338
 
BOEING PROPRIETARY
  

 
 
 
 
Attachment to Letter Agreement
No. 6-1165-LY-404
CFM56-7B24E Engines
Page 4

Climbout
Maneuver:
 
 

Climb:
 
***

Cruise:
 
 

Descent:
 
 

Approach
and Landing
Maneuver:
 
 
 
P.A. No. 3323
    
AERO-B-BBA4-M10-0591
  
SS10-0338
 
BOEING PROPRIETARY
  

 
 
 
 
Attachment to Letter Agreement
No. 6-1165-LY-404
CFM56-7B24E Engines
Page 5

Fixed
Allowances:                     ***
 
 

2.5.2
Manufacturer's Empty Weight Basis
 
The Manufacturer's Empty Weight (MEW) derived in Paragraph 2.5.3 is the basis for the mission guarantee of Paragraph 2.5.1.
 
 
 
P.A. No. 3323
    
AERO-B-BBA4-M10-059l
  
SS10-0338
 
BOEING PROPRIETARY
  
 
 
 
 
 
 
Attachment to Letter Agreement
No. 6-1165-LY-404
CFM56-7B24E Engines
Page 6
 
2.5.3 
737-800 Weight Summary - Xiamen Airlines

 
Pounds
Standard Model Specification MEW
  
Configuration Specification D019A001, Rev. N
  
Dated January 29, 2010
  
175 Tourist Class Passengers
  
CFM56-7 Engines
  
Standard Capacity Steel Brakes
  
156,000 Pounds (70,760 kg.) Maximum Taxi Weight
  
6,875 U.S. Gallons (26,024 l.) Fuel Capacity
  
   
Changes for Xiamen Airlines
  
Interior Change to 170 (8 FC/162 TC) Passengers*                                                                      ***
  
(Ref: LOPA 377-2256 Revision B) (BSI interior)
  
172,000 Pounds (78,017 kg.) Maximum Taxi Weight
  
Audio Entertainment System
  
Video Entertainment System
  
Cargo Compartment Heavy Duty Linings and Panels (Fwd and Aft)
  
Extended Operations (ETOPS)
  
60 Minute Standby Power
  
Centerline Overhead Stowage Compartments (3)
  
Winglets
  
Additional Change Requests Allowance (Incl. Dual HF / Triple VHF)
  
 
 
  
Xiamen Airlines Manufacturer's Empty Weight (MEW)
  
   
Standard and Operational Items Allowance
  
(Paragraph 2.5.4)
  
   
Xiamen Airlines Operational Empty Weight (OEW)
  

   
Quantity
  
Pounds
  
Pounds
             
* Seat Weight Included:
            
        ***    
First Class Doubles w/2 In-Arm Food Trays
            
Tourist Class Triple
            
Tourist Class Triple w/3 In-Arm Food Trays
  
  
  
  
  
  
 
 
 
P.A. No. 3323
AERO-B-BBA4-M10-0591
SS10-0338
BOEING PROPRIETARY
 
 
 
 
 
Attachment to Letter Agreement
No. 6-1165-LY-404
CFM56-7B24E Engines
Page 7
 
2.5.4 
Standard and Operational Items Allowance
 
   
Quantity
  
Pounds
  
Pounds
  
Pounds
                 
Standard Items Allowance
                
                 
Unusable Fuel
                
Oil
                
Oxygen Equipment
                
Passenger Portable
                
Crew Masks and Goggles
                
Miscellaneous Equipment
                
Crash Axe
                
Megaphones
                
Flashlights
                
Smoke Hoods
                
Galley Structure & Fixed Inserts
                
                 
Operational Items Allowance
                
                 
Crew and Crew Baggage
       ***        
Flight Crew
                
Cabin Crew
                
Navigation Bags & Manuals
                
Catering Allowance & Removable Inserts
                
First Class
                
Tourist Class
                
Crew
                
Galley Carts: 2 Half Size and 8 Full Size
                
Passenger Service Equipment
                
Potable Water#60 USG
                
Waste Tank Disinfectant
                
Emergency Equipment
                
Escape Slides - Forward
                
Escape Slides - Aft
                
Life Vests - Crew and Passengers
                
Life Rafts
                
Auto Radio Beacon (ELT)
                
                 
Total Standard and Operational Items Allowance
  
  
  
  
  
  
  
  
 
 
 
P.A. No. 3323
AERO-B-BBA4-M10-0591
SS10-0338
BOEING PROPRIETARY
 
 
 
 
 
Attachment to Letter Agreement
No. 6-1165-LY-404
CFM56-7B24E Engines
Page 8
 
3 
MANUFACTURER'S EMPTY WEIGHT
 
The Manufacturer's Empty Weight (MEW) is guaranteed not to exceed the value in Section 03-60-00 of Detail Specification D019A001XIA38P-2 plus one percent.
 
4 
AIRCRAFT CONFIGURATION
 
4.1
The guarantees contained in this Attachment are based on the Aircraft configuration as defined in the original release of Detail Specification D019A001XIA38P-2 (hereinafter referred to as the Detail Specification). Appropriate adjustment shall be made for changes in such Detail Specification approved by the Customer and Boeing or otherwise allowed by the Purchase Agreement which cause changes to the flight performance and/or weight and balance of the Aircraft. Such adjustment shall be accounted for by Boeing in its evidence of compliance with the guarantees.
 
4.2
The guarantee payload of Paragraph 2.5.1 will be adjusted by Boeing for the effect of the following on MEW and the Manufacturer's Empty Weight guarantee of Section 3 will be adjusted by Boeing for the following in its evidence of compliance with the guarantees:
 
(1)        Changes to the Detail Specification or any other changes mutually agreed upon between the Customer and Boeing or otherwise allowed by the Purchase Agreement.
 
(2)        The difference between the component weight allowances given in Appendix IV of the Detail Specification and the actual weights.
 
5 
GUARANTEE CONDITIONS
 
5.1
All guaranteed performance data are based on the International Standard Atmosphere (ISA) and specified variations therefrom; altitudes are pressure altitudes.
 
5.2
The Federal Aviation Administration (FAA) regulations referred to in this Attachment are, unless otherwise specified, the 737-800 Certification Basis regulations specified in the Type Certificate Data Sheet A16WE, Revision 41, dated July 31. 2007.
 
 
 
P.A. No. 3323
AERO-B-BBA4-M10-0591
SS10-0338
BOEING PROPRIETARY
 
 
 
 
 
Attachment to Letter Agreement
No. 6-1165-LY-404
CFM56-7B24E Engines
Page 9
 
5.3
In the event a change is made to any law, governmental regulation or requirement, or in the interpretation of any such law, governmental regulation or requirement that affects the certification basis for the Aircraft as described in Paragraph 5.2, and as a result thereof, a change is made to the configuration and/or the performance of the Aircraft in order to obtain certification, the guarantees set forth in this Attachment shall be appropriately modified to reflect any such change.
 
5.4
The takeoff and landing guarantees, and the takeoff portion of the mission guarantee are based on hard surface, level and dry runways with no wind or obstacles, no clearway or stopway, 225 mph tires, with Category C brakes and anti-skid operative, and with the Aircraft center of gravity at the most forward limit unless otherwise specified. The takeoff performance is based on no engine bleed for air conditioning or thermal anti-icing and the Auxiliary Power Unit (APU) turned off unless otherwise specified. The improved climb performance procedure will be used for takeoff as required. The landing performance is based on the use of automatic spoilers.
 
5.5
The speed and cruise fuel mileage guarantees, and the climb, cruise and descent portions of the mission guarantee include allowances for normal power extraction and engine bleed for normal operation of the air conditioning system. Normal electrical power extraction shall be defined as not less than a 50 kilowatts total electrical load. Normal operation of the air conditioning system shall be defined as pack switches in the "Auto" position, the temperature control switches in the "Auto" position that results in a nominal cabin temperature of 75°F, and all air conditioning systems operating normally. This operation allows a maximum cabin pressure differential of 8.35 pounds per square inch at higher altitudes, with a nominal Aircraft cabin ventilation rate of 3,300 cubic feet per minute including passenger cabin recirculation (nominal recirculation is 47 percent). The APU is turned off unless otherwise specified.
 
5.6
The speed and cruise fuel mileage guarantees, and the climb, cruise and descent portions of the mission guarantee are based on an Aircraft center of gravity location, as determined by Boeing, not to be aft of 26.2 percent of the mean aerodynamic chord.
 
5.7
Performance, where applicable, is based on a fuel Lower Heating Value (LHV) of 18,580 BTU per pound and a fuel density of 6.5 pounds per U.S. gallon.
 
 
 
P.A. No. 3323
AERO-B-BBA4-M10-0591
SS10-0338
BOEING PROPRIETARY
 
 
 
 
 
Attachment to Letter Agreement
No. 6-1165-LY-404
CFM56-7B24E Engines
Page 10
 
6 
GUARANTEE COMPLIANCE
 
6.1
Compliance with the guarantees of Sections 2 and 3 shall be based on the conditions specified in those sections, the Aircraft configuration of Section 4 and the guarantee conditions of Section 5.
 
6.2
Compliance with the takeoff and landing guarantees and the takeoff portion of the mission guarantee shall be based on the FAA approved Airplane Flight Manual for the Model 737-800.
 
6.3
Compliance with the speed and cruise fuel mileage guarantees, and the climb, cruise and descent portions of the mission guarantee shall be established by calculations based on flight test data obtained from an aircraft in a configuration similar to that defined by the Detail Specification.
 
6.4
The OEW used for compliance with the mission guarantee shall be the actual MEW plus the Standard and Operational Items Allowance in Paragraph 2.5.4.
 
6.5
Compliance with the Manufacturer's Empty Weight guarantee shall be based on information in the "Weight and Balance Control and Loading Manual - Aircraft Report."
 
6.6
The data derived from tests shall be adjusted as required by conventional methods of correction, interpolation or extrapolation in accordance with established engineering practices to show compliance with these guarantees.
 
6.7
Compliance shall be based on the performance of the airframe and engines in combination, and shall not be contingent on the engine meeting its manufacturer's performance specification.
 
7
EXCLUSIVE GUARANTEES
 
The only performance guarantees applicable to the Aircraft are those set forth in this Attachment.
 
 
P.A. No. 3323
AERO-B-BBA4-M10-0591
SS10-0338
BOEING PROPRIETARY
 
 
 
 

 
The Boeing Company
P.O. Box 3707
Seattle, WA 98124-2207
 
6-1165-LY-405
 
Xiamen Airlines
22 Dailiao Road
Xiamen, 361006
Fujian Province
People’s Republic of China
Subject:
Payment Matters
     
  Reference:
Purchase Agreement No. 3323 (the Purchase Agreement) between The Boeing Company (Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C Block C 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.
 
1.           Advance Payments for the Aircraft - Due on the Effective Date of the Purchase Agreement.

It is understood that Customer’s ability to make advance payments described in Article 4.2 of the Purchase Agreement may be impacted due to monetary issues, therefore Boeing agrees that all advance payments due on the effective date of the Purchase Agreement, as specified in Article 4.2, may be deferred without interest until ten business days after the effective date of the Purchase Agreement, by which time Customer will pay all advance payments specified in the Purchase Agreement as being due on or before that date.

2.           Other Scheduled Advance Payments.

As defined in Article 4 of the Purchase Agreement, advance payments are required for each Aircraft in the percentages and at the times shown in Table 3 of the Purchase Agreement. The remainder of the Aircraft purchase price is due at delivery of each Aircraft.
 
 
 
   
P.A. No. 3323
 
SA 1
 
  
Payment_Matters
  
  
 BOEING PROPRIETARY
 
 
 
 
 
 
Xiamen Airlines
6-1165-LY-405
Page 2
   
 
3.           Remedy for Non Payment of Advance Payments.

Should Customer fail to make any advance payments, which are due pursuant to the Purchase Agreement, then Customer would provide notice to Boeing in writing on or before the day that an advance payment is due that they will be unable to meet the payment due date and will have (20) days to provide a resolution that is acceptable to Boeing (Notification Period). If, after the Notification Period has passed, no mutually satisfactory resolution has been reached, and Customer is still in arrears on the payment, then Boeing reserves all its rights and remedies, under the Purchase Agreement, including but not limited to: (i) rescheduling of Aircraft; (ii) cessation of activities related to the build of such Aircraft; and (iii) any other remedies which may be available to Boeing. Boeing will provide Customer ten days advance notice of any such Aircraft rescheduling, and will not reschedule such Aircraft if advance payments on all Aircraft are current prior to the expiration of such ten day notification period.
 
4.           Effect of Aircraft Rescheduling.
 
If Boeing reschedules any Aircraft under the above provisions, then Customer and Boeing will complete a Supplemental Agreement to document the revised Aircraft delivery schedules within thirty (30) days after the ten day advance notice is given. Boeing agrees that all advance payments due on the effective date of the Supplemental Agreement may be deferred (without interest or penalty fees) ten business days, by which time Customer will pay all advance payments specified in the Supplemental Agreement as being due on or before that date.

5.            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.
 
 
 
   
P.A. No. 3323
 
SA 1
 
  
Payment_Matters
  
  
BOEING PROPRIETARY
 
 
 
 
 

 
Xiamen Airlines
6-1165-LY-405
Page 3
   
 
Very truly yours,

 
THE BOEING COMPANY
 
  By    
 
 
Its
Attorney-In-Fact
  

 
ACCEPTED AND AGREED TO this
   
 
Date: Sept. 30, 2010
   
 
XIAMEN AIRLINES
   
 
By
    
       
 
Its
    
 
 
 
   
P.A. No. 3323
 
SA 1
 
  
Payment_Matters
  
  
BOEING PROPRIETARY

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

 
6-1165-LY-407
 
Xiamen Airlines
22 Dailiao Road
Xiamen, 361006
Fujian Province
People’s Republic of China
 
Subject:
Special Escalation Program
     
 
Reference:
Purchase Agreement No. 3323 (the Purchase Agreement) between The Boeing Company (Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C Block C aircraft (the Aircraft)

 
This Letter Agreement amends and supplements the Purchase Agreement. All terms used but not defined in this Letter Agreement have the same meaning as in the Purchase Agreement.
 
1.            Aircraft Applicability.
 
The terms of this Letter Agreement are applicable only to the firm Aircraft included in Table 3 of the Purchase Agreement at the time of signing, that have scheduled Delivery Dates during the time period through July 2016 (the Included Aircraft).
 
2.            Airframe Price Adjustment.
               ***
 
 
 
   
P.A. No. 3323
 
SA 1
 
  
Special_Escalation_Program_Block C Aircraft
  
  
BOEING PROPRIETARY
 
 
 
 
 
Xiamen Airlines
6-1165-LY-407
Page 2
 
3.            Special Escalation Program Factor.
 
The Escalation Factor established in paragraph 2 above will be compared with the Special Escalation Program Factor for the corresponding delivery month and year set forth on Attachment 1 hereto.
 
 
3.1           If the Escalation Factor established in paragraph 2 is less than, or equal to, the Special Escalation Program Factor set forth on Attachment 1, such Escalation Factor shall be utilized to determine the final Aircraft Price at time of delivery.
 
 
3.2           If the Escalation Factor established in paragraph 2 is greater than the Special Escalation Program Factor set forth on Attachment 1, the Special Escalation Program Factor shall be utilized to determine the final Aircraft Price at time of delivery.
 
4.            Credit Memoranda.
 
All credit memoranda for the Included Aircraft that are defined in the Purchase Agreement as being escalated to delivery will be escalated in accordance with the above terms.
 
5.            Advance Payment Base Price.
 
The Advance Payment Base Price for each Included Aircraft will be calculated pursuant to ARTICLE 3.2 of the Purchase Agreement.
 
6.            Aircraft Not Included.
 
Aircraft that deliver after the time period set forth in Paragraph 1. above (the Not Included Aircraft) shall be escalated in accordance with the methodology set forth in Paragraph 2. above, using actual escalation, except that the starting point shall be from the July 2016 escalation factor, utilizing either the Escalation Factor or the Special Escalation Program Factor, that was actually employed pursuant to Paragraph 3. above. As such, the Not Included Aircraft will benefit from the Special Escalation Program as set forth above until July 2016. Escalation subsequent to that time will be in accordance with the standard escalation provisions of Supplemental Exhibit AE1 of the Purchase Agreement.
 
 
 
   
P.A. No. 3323
 
SA 1
 
  
Special_Escalation_Program_Block C Aircraft
  
  
BOEING PROPRIETARY
 
 
 
 
 
 
 
Xiamen Airlines
6-1165-LY-407
Page 3
 
7.           Confidential Treatment.
 
Customer understands that the commercial and financial information contained in this Letter Agreement is considered by Boeing as confidential. Customer agrees that it will treat this Letter Agreement and the information contained herein as confidential and will not, without the prior written consent of Boeing, disclose this Letter Agreement or any information contained herein to any other person or entity except (a) as required by applicable Law, governmental regulation or judicial process, (b) with the consent of Boeing, (c) to the counsel of providers of financing in connection with the Aircraft (each a "Finance Party"), (d) to bank examiners and auditors, (e) to any Finance Party or to any Person with whom any Finance Party is in good faith conducting negotiations relating to the possible transfer and sale of such Finance Party's interest in the relevant Aircraft, if such entities described in (c), (d) and (e) shall have entered into an agreement similar to that contained in this Clause whereby such entity agrees to hold such information confidential.
 
 
 
   
P.A. No. 3323
 
SA 1
 
  
Special_Escalation_Program_Block C Aircraft
  
  
BOEING PROPRIETARY
 
 
 
 
 
 
Xiamen Airlines
6-1165-LY-407
Page 4
 
 
 
 
Very truly yours,
   
 
THE BOEING COMPANY

  By    
 
 
Its
Attorney-In-Fact
  

 
ACCEPTED AND AGREED TO this
   
 
Date: Sept. 30, 2010
   
 
XIAMEN AIRLINES
   
 
By
    
     
 
Its
    
 
 
 
   
P.A. No. 3323
 
SA 1
 
  
Special_Escalation_Program_Block C Aircraft
  
  
BOEING PROPRIETARY
 
 
 
 
 
Attachment 1 to
6-1165-LY-407

SPECIAL ESCALATION PROGRAM FACTORS

Included Aircraft with scheduled Delivery Dates:

Calendar Year
Jan
Feb
Mar
Apr
May
Jun
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Note:
 
 

P.A. No. 3323
SA 1
Special_Escalation_Program_Block C Aircraft
  
BOEING PROPRIETARY