Supplemental Agreement No. 89 to Purchase Agreement No. 1810 between THE BOEING COMPANY and SOUTHWEST AIRLINES CO. Relating to Boeing Model 737-7H4 and 737-8H4 Aircraft

Supplemental Agreement No. 89

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 is entered into as of November 7, 2014, 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).

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 and 737-8H4 aircraft; and this Supplemental Agreement 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, Boeing and Buyer agree to amend the Purchase Agreement by revising the delivery month of two (2) Block 800LUV Aircraft identified by MSN 42524 and MSN 35973 (the Subject Aircraft) from August 2014 to December 2014.

NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree to amend the Purchase Agreement as follows:

1.The Table of Contents of the Purchase Agreement is deleted in its entirety and a new Table of Contents is attached hereto and incorporated into the Purchase Agreement by this reference.

2. Table 1c, “Aircraft Information Table – Block 800LUV Aircraft (non-ETOPS Configuration),” to the Purchase Agreement is deleted in its entirety and a new Table 1c is attached hereto and incorporated into the Purchase Agreement by this reference. The new Table 1c reflects the revised delivery month of the Subject Aircraft. ***

***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-89-1

3. Attachment A to Letter Agreement No. SWA-PA-1810-LA-1001315R3, *** is deleted in its entirety and a new Attachment A (identified by “SA-89”) is attached hereto and incorporated into the Purchase Agreement by this reference. The new Attachment A reflects the revised delivery month of the Subject Aircraft and ***

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/ Xxxx Xxxxxxx	By: /s/ Xxxxx Xxxxxx
	Xxxxx Xxxxxx
Its: Attorney‑In‑Fact	Its: VP, Treasurer

P.A. No. 1810 SA-89-2

TABLE OF CONTENTS
Page	SA
Number	Number

ARTICLES

1.	Subject Matter of Sale………………..…………	1-1	SA-82
2.	Delivery, Title and Risk
	of Loss……………………….………………….	2-1	SA-28
3.	Price of Aircraft…………………………………	3-1	SA-82
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-89

TABLE OF CONTENTS

SA

Number

TABLE

1a	Aircraft Information Table – Block 000XXX Xxxxxxxx		XX-00
0x	Xxxxxxxx Information Table – Block 000XXX Xxxxxxxx		XX-00
0x	Xxxxxxxx Information Table – Block 800LUV Aircraft		SA-89
	(non-ETOPS Configuration)

EXHIBITS

A-5	Aircraft Configuration – Block 700LUV Aircraft		SA-75
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	XX-00
X-0	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-87
F	Defined Terms Document

LETTER AGREEMENTS

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

P.A. No. 1810	ii
K/SWA		SA-89

TABLE OF CONTENTS

SA

Number

RESTRICTED LETTER AGREEMENTS

6‑1162‑RLL‑932R3	***	SA-75
6‑1162‑RLL‑934R5	Disclosure of Confidential	SA-75
	Information
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-1001315R3	***	SA-85
	Attachment A	SA-89
SWA-PA-1810-LA-1003498 R1	***	SA-75
SWA-PA-1810-LA-1003490R2	***	SA-82
SWA-PA-1810-LA-0000000X0	***	SA-75
SWA-PA-1810-LA-1105883	Aircraft Model Substitution	XX-00
XXX-XX-0000-XX-0000000	Option Aircraft	SA-75
	Attachment B – Option Aircraft Information Table	SA-83
SWA-PA-1810-LA-1105885R2	***	SA-84
SWA-PA-1810-LA-1105886R1	***	SA-82
SWA-PA-1810-LA-1105887	***	SA-75

P.A. No. 1810	iii
K/SWA		SA-89

TABLE OF CONTENTS

SA

Number

SWA-PA-1810-LA-0000000X0	***	XX-00
XXX-XX-0000-XX-0000000	***	SA-75
SWA-PA-01810/03729-LA-1301169	***	SA-83
SWA-PA-1810-LA-1303010	***	SA-85

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 Xxxxx 000XXX & Xxxxx 000XXX Xxxxxxxx)
6-1162-JMG-501R2	Business Offer – ACARS package
	(Not applicable to Xxxxx 000XXX & Xxxxx 000XXX Xxxxxxxx)

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

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 - 000-000 Xxxxx X-X-0 / X-X-0x	SA-47	Inactive
A-3	Aircraft Configuration - 737-700 Block T-W-2 / T-W-2a	SA-61	Inactive

P.A. No. 1810	iv
K/SWA		SA-89

TABLE OF CONTENTS

Exhibits	Title	Last Updated under SA	Current Status
X-0	Xxxxxxxx Xxxxxxxxxxxxx - 000-000 Xxxxx X-X-0x Aircraft	SA-66	Inactive
C.0	000-000 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 – Aircraft Price Adjustment (July 1999 Base Price)	SA-13	Inactive
E.0	000-000 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	SA-1	Inactive

P.A. No. 1810	v
K/SWA		SA-89

TABLE OF CONTENTS

Letter Agreement	Title	Last Updated under SA	Current Status
	Customer Unique Changes
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
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
0-0000-XXX-000	Xxxxxxxx - 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	***	XX-00 XX-00 XX-00	Xxxxxxxx
XXX-XX-0000-XX-00000X0	***	SA-72	Inactive

P.A. No. 1810	vi
K/SWA		SA-89

Table 1c to

Purchase Agreement No. PA-01810

Aircraft Delivery, Description, Price and Advance Payments

Block 800LUV Aircraft (non-ETOPS Configuration)

Airframe Model/MTOW:	737-800	174200 pounds			Detail Specification:		D019A001SWA38P-1 Rev C (3/29/2013)
Engine Model/Thrust:	CFM56-7B27	27300 pounds	Note 1		Base Aircraft Price Base Year/Escalation Formula:			Jul-11	ECI-MFG/CPI
Base Aircraft Price:		***			Engine Price Base Year/Escalation Formula:			N/A	N/A
Special Features:	***
Add'l Features/Changes	***
Total Special Features (Exhibit A-7)		***
Sub-Total of Airframe and Features:		***			Aircraft Price 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:		***

		Escalation	Aircraft			Escalation Estimate	Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
Delivery	Number of	Factor	Serial	Escalation	Sub-Block	Adv Payment Base	At Signing	24 Mos.	21/18/12/9/6 Mos.	Total
Date	Aircraft	(Airframe)	Number	Forecast	Note 2	Price Per A/P	***	***	***	***
Sep-2013	3	***	36933, 36912, 36914	***		***	***	***	***	***
Nov-2013	3	***	36915, 33939, 42526	***		***	***	***	***	***
Dec-2013	3	***	36917, 36919, 36731	***		***	***	***	***	***
Mar-2014	2	***	37004, 36896	***		***	***	***	***	***
Apr-2014	3	***	42384, 36894, 36895	***		***	***	***	***	***
May-2014	3	***	36897, 42385, 42521	***		***	***	***	***	***
Jun-2014	4	***	36898, 36905, 42522, 42523	***		***	***	***	***	***
Jun-2014	2	***	60082, 60083	***	OPEX	***	***	***	***	***
Jul-2014	1	***	36911	***		***	***	***	***	***
Jul-2014	3	***	60084, 60085, 60086	***	OPEX	***	***	***	***	***
Aug-2014	4	***	36907, 42525, 36935, 42528	***		***	***	***	***	***
Sep-2014	2	***	42527, 42531	***		***	***	***	***	***

SWA-PA-01810		SA-89
63879 / 63887 / 64110 / 64111 / 66379 / 68788 / 70150 / 70766	Boeing Proprietary	Page 1

Table 1c to

Purchase Agreement No. PA-01810

Aircraft Delivery, Description, Price and Advance Payments

Block 800LUV Aircraft (non-ETOPS Configuration)

		Escalation	Aircraft			Escalation Estimate	Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
Delivery	Number of	Factor	Serial	Escalation	Sub-Block	Adv Payment Base	At Signing	24 Mos.	21/18/12/9/6 Mos.	Total
Date	Aircraft	(Airframe)	Number	Forecast	Note 2	Price Per A/P	***	***	***	***
Sep-2014	1	***	36909	***		***	***	***	***	***
Oct-2014	1	***	36920	***		***	***	***	***	***
Nov-2014	1	***	36971	***		***	***	***	***	***
Dec-2014	2	***	37037, 37045	***		***	***	***	***	***
Dec-2014	2	***	42529, 42530	***		***	***	***	***	***
Dec-2014	2	*** Note 3	42524, 35973	***		***	***	***	***	***
Jan-2015	2	***	36899, 42535	***		***	***	***	***	***
Feb-2015	3	***	36901, 36654, 36906	***		***	***	***	***	***
Mar-2015	2	***	36902, 36936	***		***	***	***	***	***
Apr-2015	2	***	36649, 36652	***		***	***	***	***	***
May-2015	2	***	36903, 36657	***		***	***	***	***	***
Jun-2015	2	***	36655, 36656	***		***	***	***	***	***
Nov-2015	3	***	36937, 36715, 36940	***		***	***	***	***	***
Dec-2015	3	***	36941, 36734, 35976	***		***	***	***	***	***
Total:	61
Notes:
1) ***
2) The sub-block identifier is used to denote applicability of certain business terms as referenced in Letter Agreement SWA-PA-1810-LA-0000000X0 to the Purchase Agreement.
3) ***

SWA-PA-01810		SA-89
63879 / 63887 / 64110 / 64111 / 66379 / 68788 / 70150 / 70766	Boeing Proprietary	Page 2

Attachment A to SWA-PA-1810-LA1001315R3

Page 1 of 2

***
Letter Agmt SWA-PA-1810-LA-1001315R3; paragraph 3
No.	Model	Aircraft Block	MSN's	Current Delivery Mo.	Base Year	***
1	737-700	T-W-2b	36962	July-11	1999	***
2	737-700	T-W-2b	36963	July-11	1999	***
3	737-700	T-W-2b	36965	August-11	1999	***
4	737-700	T-W-2b	36967	October-11	1999	***
0	000-000	000XXX	00000	Xxxxx-00	2011	***
0	000-000	000XXX	00000	Xxxxx-00	2011	***
0	000-000	800LUV	36985	May-12	2011	***
0	000-000	800LUV	36987	May-12	2011	***
0	000-000	800LUV	36990	July-12	2011	***
00	000-000	800LUV	36992	August-12	2011	***
00	000-000	800LUV	36994	September-12	2011	***
00	000-000	800LUV	37003	November-12	2011	***
00	000-000	800LUV	37009	December-12	2011	***
00	000-000	000XXX	00000	Xxxxx-00	2011	***
00	000-000	000XXX	00000	Xxxxx-00	2011	***
00	000-000	800LUV	36908	April-13	2011	***
00	000-000	800LUV	36933	September-13	2011	***
00	000-000	800LUV	42526	November-13	2011	***
00	000-000	000XXX	00000	Xxxxx-00	2011	***
00	000-000	800LUV	42521	May-14	2011	***
00	000-000	800LUV	42522	June-14	2011	***
00	000-000	800LUV	60082	June-14	2011	***
00	000-000	800LUV	60083	June-14	2011	***
00	000-000	800LUV	42523	June-14	2011	***
00	000-000	800LUV	60084	July-14	2011	***
00	000-000	800LUV	60085	July-14	2011	***
00	000-000	800LUV	60086	July-14	2011	***
00	000-000	800LUV	42524	December-14	2011
00	000-000	800LUV	42525	August-14	2011	***
00	000-000	800LUV	36935	August-14	2011	***
00	000-000	800LUV	42527	September-14	2011	***
00	000-000	800LUV	42528	August-14	2011	***
00	000-000	800LUV	42531	September-14	2011	***
00	000-000	800LUV	36909	September-14	2011	***
00	000-000	800LUV	42529	December-14	2011
00	000-000	800LUV	42530	December-14	2011
00	000-000	800LUV	37045	December-14	2011
00	000-000	800LUV	37037	December-14	2011
00	000-000	800LUV	42535	January-15	2011
00	000-000	800LUV	36940	November-15	2011
00	000-000	700LUV	36938	April-16	2011
00	000-000	700LUV	36939	May-16	2011
00	000-000	700LUV	36945	July-16	2011
00	000-000	700LUV	36977	September-16	2011
00	000-000	700LUV	42532	January-17	2011
00	000-000	700LUV	36910	January-17	2011
00	000-000	700LUV	36970	February-17	2011
00	000-000	700LUV	36969	February-17	0000

XX-00

Xxxxxxxxxx A to SWA-PA-1810-LA1001315R3

Page 2 of 2

00	000-000	700LUV	36972	March-17	2011
00	000-000	700LUV	36927	April-17	2011
00	000-000	700LUV	36974	April-17	2011
00	000-000	700LUV	36925	May-17	2011
00	000-000	700LUV	36975	May-17	2011
00	000-000	700LUV	36976	June-17	2011
00	000-000	700LUV	36926	January-18	2011
00	000-000	700LUV	42533	February-18	2011
00	000-000	700LUV	42545	February-18	2011
00	000-000	700LUV	42534	March-18	2011
59			tbd
60			tbd
61			tbd
62			tbd

SA-89