EX-1 2 ex10-1.txt EXHIBIT 10.1 Exhibit 10.1 Supplemental Agreement No. 45 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 June 9, 2005, 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, Buyer has agreed to exercise one (1) October 2006 Block U-W Option Aircraft (as Block T-W Aircraft) and; WHEREAS, Boeing agreed to provide further business considerations relating the 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. 2. Table 1 is deleted in its entirety and replaced by a new Table 1 which is attached hereto and is 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-45-2 K/SWA 3. Table 2 is deleted in its entirety and replaced by a new Table 2 which is attached hereto and is incorporated into the Agreement by this reference. NOTE - Buyer now has fifty-three (53) 'banked' Rollover Option Aircraft as a result of the option exercises covered by Supplemental Agreement No. 21, 23, 24, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44 and 45 that may be converted to Option Aircraft at a future date subject to the terms of Letter Agreement No. 6-1162-RLL-933R19. 4. Letter Agreement No. 6-1162-JMG-669R5 entitled "Special Matters" is deleted in its entirety and replaced by Agreement No. 6-1162-JMG-669R6 entitled "Special Matters" attached hereto and is hereby incorporated into the Agreement by this reference. 5. All references in the Letter Agreements associated with Purchase Agreement No. 1810 shall be deemed to refer to the purchase by Buyer of two hundred eighty-nine (289) Model 737-7H4 Aircraft, thirty-four (34) Model 737- 7H4 Option Aircraft and two hundred seventeen (217) Model 737-7H4 Rollover Option Aircraft, to the extent such reference is not specifically addressed herein. 6. The Advance Payments due upon signing assuming execution of this Supplemental Agreement on or before June 30, 2005 are: *** for one (1) October 2006 aircraft Buyer will pay the *** directly to Boeing on or before Thursday, June 30, 2005. 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/ Laura Wright Its: Attorney-In-Fact Its: Senior Vice President Finance & CFO P.A. No. 1810 SA-45-1 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-28 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
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TABLE OF CONTENTS CON'T SA Number TABLE 1. Aircraft Information Table SA-45 2. Option Aircraft Information Table SA-45 EXHIBITS A Aircraft Configuration SA-36 B Product Assurance Document SA-1 C Customer Support Document D Price Adjustments Due to Economic Fluctuations - Aircraft SA-13 E Buyer Furnished Equipment Provisions Document F Defined Terms Document LETTER AGREEMENTS 1810-1 Waiver of Aircraft Demonstration Flight
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TABLE OF CONTENTS CON'T SA Number RESTRICTED LETTER AGREEMENTS 6-1162-RLL-932R2 Promotional Support SA-13 6-1162-RLL-933R19 Option Aircraft SA-28 6-1162-RLL-934R3 Disclosure of Confidential SA-14 Information 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 Airframe Maintenance Material Cost Protection Program 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 SA-1 Field Test 6-1162-RLL-1858R1 Escalation Matters SA-4
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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 SA-1 Basic Price 6-1162-RLL-2073 Maintenance Training Matters SA-1 6-1162-KJJ-054 Business Matters SA-13 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 SA-14 Control Panel Spares Matter 6-1162-MSA-185R3 Delivery Change Contractual SA-21 Matters 6-1162-JMG-669R6 Special Matters SA-45 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 *** SA-35 6-1162-NIW-889 Warranty - Exterior Color Schemes SA-39 and Markings for YA143 and on 6-1162-NIW-1142 *** SA-43
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Table 1 to Purchase Agreement No. 1810 Aircraft Information Table Base Aircraft Special Aircraft Basic Base Year Price Features Price Dollars Block A, B, C, D & E *** *** *** July 1992 Aircraft 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 K-W Aircraft: Block K airplanes with production winglets installation Block T-W Aircraft: Block T airplanes with production winglets installation SWA Page 1 SA-45
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 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 *** 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 *** Apr-2006 2 T-W *** May-2006 5 T-W *** Jun-2006 5 T-W *** Jul-2006 3 T-W *** Aug-2006 3 T-W *** Sep-2006 3 T-W *** Oct-2006 1 T-W *** Nov-2006 2 T-W *** Dec-2006 2 T-W *** Jan-2007 2 T-W *** Feb-2007 3 T-W *** Mar-2007 2 T-W *** Apr-2007 2 T-W *** May-2007 2 T-W *** Jun-2007 2 T-W *** Jul-2007 2 T-W *** Aug-2007 2 T-W *** Sep-2007 2 T-W *** Oct-2007 2 T-W *** Nov-2007 2 T-W *** Dec-2007 2 T-W *** Jan-2008 1 T-W *** Feb-2008 1 T-W *** Mar-2008 1 T-W *** Apr-2008 1 T-W *** May-2008 1 T-W *** Jun-2008 1 T-W ***
Table 2 to Purchase Agreement No. 1810 (Letter Agreement No. 6-1162-RLL-933R19) Option Aircraft Information Table Price Description of Option Aircraft: Base Aircraft Special Aircraft Basic Base Year Price Features Price Dollars Block U Option *** *** *** July 1999 Aircraft (without Winglets) Block U-W Option *** *** *** July 1999 Aircraft (with Winglets)
Delivery of Rollover Option Aircraft: Year of Number of Option Aircraft Block Delivery Option Aircraft 2007 Twenty (20) Q 2008 Twenty (20) R 2009 Six (6) S 2009- One Hundred V 2012 Seventy-One (171) Remaining Option 34 Aircraft:
SWA Page 1 SA-45
Table 2 to Purchase Agreement No. 1810 (Letter Agreement No. 6-1162-RLL-933R19) Option Aircraft Information Table Adv Payment Aircraft Number of Option Base Delivery Option Aircraft Price Per Mo. & Yr. Aircraft Block Option Aircraft Option Exercise Apr-2007 1 U-W *** December 1, 2005 May-2007 1 U-W *** January 1, 2006 Jun-2007 1 U-W *** February 1, 2006 Jul-2007 1 U-W *** March 1, 2006 Aug-2007 1 U-W *** April 1, 2006 Sep-2007 1 U-W *** May 1, 2006 Oct-2007 1 U-W *** June 1, 2006 Nov-2007 1 U-W *** July 1, 2006 Dec-2007 1 U-W *** August 1, 2006 Jan-2008 2 U-W *** September 1, 2006 Feb-2008 3 U-W *** October 1, 2006 Mar-2008 2 U-W *** November 1, 2006 Apr-2008 2 U-W *** December 1, 2006 May-2008 2 U-W *** January 1, 2007 Jun-2008 2 U-W *** February 1, 2007 Jul-2008 2 U-W *** March 1, 2007 Aug-2008 2 U-W *** April 1, 2007 Sep-2008 2 U-W *** May 1, 2007 Oct-2008 2 U-W *** June 1, 2007 Nov-2008 2 U-W *** July 1, 2007 Dec-2008 2 U-W *** August 1, 2007
6-1162-JMG-669R6 Southwest Airlines Co. P.O. Box 36611 - Love Field Dallas, Texas 75235 Subject: Special Matters This Letter Agreement amends Purchase Agreement No. 1810 dated as of January 19, 1994 (the Agreement) between The Boeing Company (Boeing) and Southwest Airlines Co. (Buyer) relating to Model 737 aircraft: 1) *** 2) *** All terms used and not defined herein will have the same meaning as in the Agreement. 1. *** 2. *** 3. *** 4. *** 5. *** 6. *** 7. *** 8. *** 9. *** P.A. No. 1810 SA-45 K/SWA Southwest Airlines Co. 6-1162-JMG-669R6 10. *** 11. Confidential Treatment. Buyer understands that certain commercial and financial information contained in this Letter Agreement including any attachments hereto is considered by Boeing as confidential. Buyer 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 as provided in Letter Agreement No. 6-1162-RLL-934, as amended. Very truly yours, THE BOEING COMPANY By /s/ Nobuko Wiles Its Attorney-In-Fact ACCEPTED AND AGREED TO this date: June 9, 2005 SOUTHWEST AIRLINES CO. By /s/ Laura Wright Its SVP Finance & CFO P.A. No. 1810 K/SWA SA-45 Southwest Airlines Co. Attachment A to 6-1162-JMG-669R6 *** P.A. No. 1810 K/SWA SA-45