Supplemental Agreement No. 2 to Purchase Agreement No. 3860 between The Boeing Company and United Airlines, Inc. Relating to Boeing Model 787 Aircraft
Exhibit 10.197
CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION IN ACCORDANCE WITH THE SECURITIES ACT OF 1933, AS AMENDED, AND RULE 24B-2 PROMULGATED THEREUNDER. OMITTED INFORMATION HAS BEEN REPLACED WITH ASTERISKS.
Supplemental Agreement No. 2
to
Purchase Agreement No. 3860
between
The Boeing Company
and
Relating to Boeing Model 787 Aircraft
THIS SUPPLEMENTAL AGREEMENT, entered into as of December 16, 2013, by and between THE BOEING COMPANY (Boeing) and UNITED AIRLINES, INC. (a Delaware corporation formerly known as Continental Airlines, Inc. and successor by merger to United Air Lines, Inc.) (Customer);
WHEREAS, the parties hereto entered into Purchase Agreement No. 3860 dated September 27, 2012, as amended and supplemented (Purchase Agreement), relating to the purchase and sale of Boeing Model 787 aircraft (Aircraft). This Supplemental Agreement is an amendment to the Purchase Agreement;
WHEREAS, Boeing and Customer agree to substitute *** Model 787-*** aircraft (787-*** Aircraft) in lieu of Model 787-*** aircraft (787-*** Aircraft) and to revise the scheduled delivery for these Aircraft as follows:
| Manufacturer Serial Number |
787-*** Aircraft Delivery Month |
787-*** Aircraft Delivery Month *** | ||
| *** |
*** | *** | ||
| *** |
*** | *** |
WHEREAS, Boeing and Customer have previously agreed to accelerate the promotional support funds for the Aircraft so that such promotional support funds were made available Customer on ***; and
WHEREAS, Customer has agreed to configure the Aircraft with engines provided by ***;
| XXX-XX-0000 | XX-0, Page 1 | |||
| BOEING / UNITED AIRLINES, INC. PROPRIETARY |
NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree to amend the Purchase Agreement as follows:
1. Table of Contents and Articles.
Remove and replace, in its entirety, the “Table of Contents,” with the Table of Contents attached hereto, to reflect the incorporation of this Supplemental Agreement No. 2 into the Purchase Agreement.
2. Tables.
2.1. Table 1 is replaced in its entirety with the Table 1 attached hereto that is related to and references this Supplemental Agreement for Model 787-8 aircraft.
2.2. Table 1 is replaced in its entirety with the Table 1 attached hereto that is related to and references this Supplemental Agreement for Model 787-9 aircraft.
2.3. Table 1 is replaced in its entirety with the Table 1 attached hereto that is related to and references this Supplemental Agreement for Model 787-10 aircraft.
3. Letter Agreements:
Remove and replace, in its entirety, Letter Agreement UAL-PA-03860-LA-1209416 entitled “Promotional Support” with the revised Letter Agreement UAL-PA-03860-LA-1209416R1 attached hereto.
The Purchase Agreement will be deemed to be supplemented to the extent herein provided as of the date hereof and as so supplemented will continue in full force and effect.
[The rest of the page is intentionally blank. Signature page follows.]
| UAL-PA-3860 | XX-0, Xxxx 0 | |||
| XXXXXX / XXXXXX XXXXXXXX, INC. PROPRIETARY |
EXECUTED IN DUPLICATE as of the day and year first written above.
| THE BOEING COMPANY | UNITED AIRLINES, INC. | |||
| /s/ *** |
/s/ Xxxxxx Xxxxxxxx | |||
| Signature | Signature | |||
| Attorney-in-Fact |
Senior Vice President – Finance, Procurement and Treasurer | |||
| Title | Title | |||
| XXX-XX-0000 | XX-0, Page 3 | |||
| BOEING / UNITED AIRLINES, INC. PROPRIETARY |
TABLE OF CONTENTS
| SA NUMBER | ||||||
| ARTICLES |
||||||
| Article 1. | Quantity, Model and Description |
SA-1 | ||||
| Article 2. | Delivery Schedule |
SA-1 | ||||
| Article 3. | Price |
SA-1 | ||||
| Article 4. | Payment |
SA-1 | ||||
| Article 5. | Additional Terms |
SA-1 | ||||
| TABLE | ||||||
| 1. | 787-8 with GENX-1B*** Engines Aircraft Information Table |
SA-2 | ||||
| 1. | 787-9 with GENX-1B*** Engines Aircraft Information Table |
SA-2 | ||||
| 1. | 787-10 with GENX-1B*** Engines Aircraft Information Table |
SA-2 | ||||
| EXHIBITS | ||||||
| A1. | 787-8 Aircraft Configuration |
|||||
| A2. | 787-9 Aircraft Configuration |
|||||
| A3. | 787-10 Aircraft Configuration |
SA-1 | ||||
| B. | Aircraft Delivery Requirements and Responsibilities |
|||||
| SUPPLEMENTAL EXHIBITS | ||||||
| AE1. | Escalation Adjustment/Airframe and Optional Features |
|||||
| BFE1. | BFE Variables |
SA-1 | ||||
| CS1. | Customer Support Document |
|||||
| EE1. | Engine Escalation/Engine Warranty *** |
|||||
| SLP1. | Service Life Policy Components |
|||||
| LETTER AGREEMENTS | ||||||
| UAL-PA-03860-LA-1209247 | 787 e-Enabling |
|||||
| U AL-PA-03860-LA-1209264 | Open Configuration Matters |
|||||
| P.A. 3860 | TABLE OF CONTENTS, Page 1 of 3 | SA-1 | ||
| BOEING/UNITED AIRLINES, INC. PROPRIETARY |
TABLE OF CONTENTS, CONTINUED
| SA Number | ||||||
| LETTER AGREEMENTS |
||||||
| UAL-PA-03860-LA-1209265R1 | Option Aircraft |
SA-1 | ||||
| Attachment A, 787-*** Option Aircraft Delivery, Description, Price and Advance Payments (DELETED) |
XX-0 | |||||
| Xxxxxxxxxx X-0, 787-*** with GENX-1B*** Engines: Option Aircraft Delivery, Description, Price and Advance Payments |
XX-0 | |||||
| Xxxxxxxxxx X-0, 787-*** with TRENT1000-*** Engines: Option Aircraft Delivery, Description, Price and Advance Payments |
XX-0 | |||||
| XXX-XX-00000-XX-0000000 | Xxxxx Parts Initial Provisioning |
|||||
| UAL-PA-03860-LA-1209410 | Special Matters Relating to COTS Software and End User License Agreements |
|||||
| UAL-PA-03860-LA-1209411 | Special Terms – Seats and In-flight Entertainment |
|||||
| UAL-PA-03860-LA-1209417 | Model 787 Post-Delivery Software & Data Loading |
|||||
| CONFIDENTIAL LETTER AGREEMENTS | ||||||
| UAL-PA-03860-LA-1209236R1 | Model Substitution |
SA-1 | ||||
| Attachment A, 787-9 Airframe Pricing of Substitution Aircraft with General Electric GEnx-1B*** and Rolls Xxxxx Xxxxx 1000-J engines |
SA-1 | |||||
| Attachment B, 787-10 with General Electric GEnx-1B*** and Rolls Xxxxx XXXXX 1000-*** Engines |
SA-1 | |||||
| Attachment C, 787-8 with General Electric GEnx-1B*** and Rolls Xxxxx XXXXX 1000-*** |
SA-1 | |||||
| P.A. 3860 | TABLE OF CONTENTS, Page 2 of 3 | SA-2 | ||
| BOEING/UNITED AIRLINES, INC. PROPRIETARY |
TABLE OF CONTENTS, CONTINUED
| SA NUMBER | ||||||
| CONFIDENTIAL LETTER AGREEMENTS, continued | ||||||
| UAL-PA-03860-LA-1209412 | Spare Parts Commitment |
|||||
| UAL-PA-03860-LA-1209413R1 | Special Matters |
XX-0 | ||||
| XXX-XX-00000-XX-0000000 | Xxxxx Special Matters |
|||||
| UAL-PA-03860-LA-1209413A1 | Other Special Matters—Amendment 1 |
SA-1 | ||||
| UAL-PA-03860-LA-1209416R1 | Promotional Support |
XX-0 | ||||
| XXX-XX-00000-XX-0000000 | Performance Guarantees |
|||||
| UAL-PA-03860-LA-1209455 | *** TERMINATED |
XX-0 | ||||
| XXX-XX-00000-XX-0000000 | *** |
|||||
| UAL-PA-03860-LA-0000000X0 | Alternate Engine Selection |
SA-1 | ||||
| 6-1162-ELP-0794 | *** Program*** |
|||||
| 6-1162-ELP-0795 | *** Program*** |
|||||
| UAL-PA-03860-LA-1301368 | Performance Guarantees (787-10) |
XX-0 | ||||
| XXX-XX-00000-XX-0000000 | 787-10 Aircraft Open Configuration and Other Matters |
SA-1 | ||||
| UAL-PA-03860-LA-1301375 | Provisions Relating to Customer’s *** for 000-00 Xxxxxxxx |
XX-0 | ||||
| XXX-XX-00000-XX-0000000 | 787-10 *** |
SA-1 | ||||
| UAL-PA-03860-LA-1301380 | 787-10 Program Launch |
SA-1 | ||||
| P.A. 3860 | TABLE OF CONTENTS, Page 3 of 3 | SA-2 | ||
| BOEING/UNITED AIRLINES, INC. PROPRIETARY |
| SUPPLEMENTAL AGREEMENTS |
DATED AS OF | |||
| Supplemental Agreement No. 1 |
June 17, 2013 | |||
| Supplemental Agreement No. 2 |
December 16, 2013 | |||
| P.A. 3860 | TABLE OF CONTENTS, Page 1 of 3 | SA-2 | ||
| BOEING/UNITED AIRLINES, INC. PROPRIETARY |
Table 1 to Purchase Agreement No. 3860
787-8 Aircraft with GENX-1B*** Engines Delivery, Description, Price and Advance Payments
| Airframe Model/MTOW: |
787-8 | *** pounds | Detail Specification: |
* | ** | |||||||||||||||||||||
| Engine Model/Thrust: |
GENX-1B*** | *** pounds | Airframe Price Base Year/Escalation Formula: |
* | ** | * | ** | |||||||||||||||||||
| Airframe Price: |
$*** | Engine Price Base Year/Escalation Formula: |
* | ** | * | ** | ||||||||||||||||||||
| 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: |
$*** | Engine Escalation Data: |
||||||||||||||||||||||||
| Seller Purchased Equipment (SPE) Estimate: |
$*** | Base Year Index (ECI): |
* | ** | ||||||||||||||||||||||
| In Flight Entertainment (IFE) Fixed$: |
$*** | Base Year Index (CPI): |
* | ** |
| Delivery Date |
Number of Aircraft |
Escalation Factor (Airframe) |
Escalation Factor (Engine) |
Serial Number |
Escalation Estimate Adv Payment Base Price Per A/P |
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery): | ||||||||||||
| *** *** |
*** *** |
*** *** |
*** *** | |||||||||||||||
| *** | *** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** | *** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** | *** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** | *** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** | *** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** | *** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** | *** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
|
|
||||||||||||||||||
| Total | *** | |||||||||||||||||
|
|
||||||||||||||||||
All pricing and payment amounts are in United States Dollars (USD).
| UAL-PA-03860, APR 66731-IF.TXT | Boeing Proprietary | Table 1 787-8 with GENX-1B*** Engines Page 1, SA-2 |
Table 1 to Purchase Agreement No. 3860
*** 787-9 *** Aircraft Executed via SA-1
FOR *** PURPOSES ONLY: UNTIL *** PRIOR TO APPLICABLE AIRCRAFT DELIVERY
| Airframe Model/MTOW: |
787-8 | *** pounds | Detail Specification: | *** | ||||||||||||||||||||||||
| Engine Model/Thrust: |
GENX-1B*** | *** pounds | Airframe Price Base Year/Escalation Formula: | *** | *** | |||||||||||||||||||||||
| Airframe Price: |
$*** | Engine Price Base Year/Escalation Formula: | *** | *** | ||||||||||||||||||||||||
| 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: |
$*** | Engine Escalation Data: | ||||||||||||||||||||||||||
| Seller Purchased Equipment (SPE) Estimate: |
$*** | Base Year Index (ECI): | *** | |||||||||||||||||||||||||
| In Flight Entertainment (IFE) Fixed$: |
$*** | Base Year Index (CPI): | *** |
| Delivery Date |
*** Prior to Applicable Delivery |
Number of Aircraft |
Escalation Factor (Airframe) |
Escalation Factor (Engine) |
Serial Number |
Escalation Estimate Adv Payment Base Price Per A/P |
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery): | |||||||||||||
| *** *** |
*** *** |
*** *** |
*** *** | |||||||||||||||||
| *** |
*** | *** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | ||||||||||
| *** |
*** | *** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | ||||||||||
| *** |
*** | *** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | ||||||||||
| *** |
*** | *** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | ||||||||||
| *** |
*** | *** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | ||||||||||
|
|
||||||||||||||||||||
| Total |
*** | |||||||||||||||||||
|
|
||||||||||||||||||||
All pricing and payment amounts are in United States Dollars (USD).
| UAL-PA-03860, APR 66731-IF.TXT | Boeing Proprietary | Table 1 787-8 with GENX-1B*** Engines Page 1, SA-2 |
Table 1 to Purchase Agreement No. 3860
787-9 Aircraft with GENX-1B*** Engines Delivery, Description, Price and Advance Payments
APBP beginning *** prior to applicable delivery for *** 787-9 aircraft only
| Airframe Model/MTOW: |
787-9 | * | ** pounds | Detail Specification: | * | ** | ||||||||||||||||||||||||
| Engine Model/Thrust: |
GENX-1B***¹ | * | ** pounds | Airframe Price Base Year/Escalation Formula: | * | ** | * | ** | ||||||||||||||||||||||
| Airframe Price: |
$ | *** | Engine Price Base Year/Escalation Formula: | * | ** | * | ** | |||||||||||||||||||||||
| 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: |
$ | *** | Engine Escalation Data: | |||||||||||||||||||||||||||
| Seller Purchased Equipment (SPE) Estimate: |
$ | *** | Base Year Index (ECI): | * | ** | |||||||||||||||||||||||||
| In Flight Entertainment (IFE) Estimate: |
$ | *** | Base Year Index (CPI): | * | ** | |||||||||||||||||||||||||
| Delivery Date |
*** Prior to Applicable Delivery |
Number of Aircraft |
Escalation Factor (Airframe) |
Escalation Factor (Engine) |
Serial Number |
Escalation Estimate Adv Payment Base Price Per A/P |
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery): | |||||||||||||
| *** *** |
*** *** |
*** *** |
*** *** | |||||||||||||||||
| *** |
*** | *** | *** | *** | *** | $*** | $ *** | $*** | $*** | $*** | ||||||||||
| *** |
*** | *** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | ||||||||||
| *** |
*** | *** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | ||||||||||
| *** |
*** | *** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | ||||||||||
| *** |
*** | *** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | ||||||||||
| *** |
*** | *** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | ||||||||||
| *** |
*** | *** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | ||||||||||
|
|
||||||||||||||||||||
| Total |
*** | |||||||||||||||||||
|
|
||||||||||||||||||||
| ¹ | *** on a *** to delivery GEnx-1B*** at the GEnx-1B*** price. |
All pricing and payment amounts are in United States Dollars (USD).
| UAL-PA-03860, APR 66372-IF.TXT | Boeing Proprietary | Table 1 787-9 with GENX-1B*** Engines Page 1, SA-2 |
Table 1 to Purchase Agreement No. 3860
787-10 Aircraft with GENX-1B*** Engines Delivery, Description, Price and Advance Payments
(787-10/GE/***)
| Airframe Model/MTOW: |
787-10 | *** pounds | Detail Specification: | *** | ||||||||||||||||||||||||||
| Engine Model/Thrust: |
GENX-1B***¹ | *** pounds | Airframe Price Base Year/Escalation Formula: | *** | *** | |||||||||||||||||||||||||
| Airframe Price: |
$*** | Engine Price Base Year/Escalation Formula: | *** | *** | ||||||||||||||||||||||||||
| 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: |
$*** | Engine Escalation Data: | ||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||
| In-Flight Entertainment (IFE) Estimate: |
$*** | Base Year Index (ECI): | *** | |||||||||||||||||||||||||||
| Base Year Index (CPI): | *** | |||||||||||||||||||||||||||||
| Refundable Deposit/Aircraft at Proposal Accept: |
$*** |
| Escalation | Escalation | Escalation Estimate | Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery): | |||||||||||||||
| Delivery | Number of | Factor | Factor | Serial | Adv Payment Base | *** | *** | *** | *** | |||||||||
| Date |
Aircraft | (Airframe) | (Engine) | Number | Price Per A/P | *** | *** | *** | *** | |||||||||
| *** |
*** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** |
*** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** |
*** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** |
*** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** |
*** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** |
*** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** |
*** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** |
*** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** |
*** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** |
*** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** |
*** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** |
*** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** |
*** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| APR 67002-IF.TXT | Boeing Proprietary | 787-10 with GE Engines Table 1 to SA-2, Page 1 |
Table 1 to Purchase Agreement No. 3860
787-10 Aircraft with GENX-1B*** Engines Delivery, Description, Price and Advance Payments
(787-10/GE/***)
| Escalation | Escalation | Escalation Estimate | Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery): | |||||||||||||||
| Delivery | Number of | Factor | Factor | Serial | Adv Payment Base | *** | *** | *** | *** | |||||||||
| Date |
Aircraft | (Airframe) | (Engine) | Number | Price Per A/P | *** | *** | *** | *** | |||||||||
| *** |
*** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** |
*** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** |
*** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** |
*** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
| *** |
*** | *** | *** | *** | $*** | $*** | $*** | $*** | $*** | |||||||||
|
|
||||||||||||||||||
| Total: |
*** | |||||||||||||||||
| ¹ | *** on a *** to delivery GEnx-1B*** at the GEnx-1B***. |
All pricing and payment amounts are in United States Dollars (USD).
| APR 67002-IF.TXT |
Boeing Proprietary | 787-10 with GE Engines Table 1 to SA-2, Page 2 |
|
The Boeing Company X.X. Xxx 0000 Xxxxxxx, XX 00000-0000 |
UAL-PA-03860-LA-1209416R1
000 Xxxxx Xxxxxx Xxxxx
Xxxxxxx, Xxxxxxxx 00000
| Subject: | Promotional Support | |
| Reference: | a) Purchase Agreement No. 3860 (the Purchase Agreement) between The Boeing Company (Boeing) and United Air Lines, Inc. (Customer) relating to Model 787 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.
In support of Customer’s marketing and promotion programs associated with the launch of the Model 787 and introduction of the Aircraft into service, Boeing agrees *** Customer’s external expenses for such programs *** after delivery of the first Aircraft to Customer. Boeing will match Customer’s external expenses up to $*** for the first Aircraft and up to $*** for each additional Aircraft up to a maximum of *** total Aircraft. These programs may include *** promotion programs and advertising campaigns.
Boeing’s obligation to provide this *** support will commence at the time the purchase of the Aircraft becomes firm (not subject to cancellation by either party) and terminate *** after the delivery of the first Aircraft. Boeing will provide payment of matching funds upon receipt of copies of invoices detailing such expenses incurred within the period starting from *** through *** after the actual delivery of the first Aircraft to Customer. There will be no cash payments or other support in lieu thereof.
Following the execution of this Letter Agreement, a Boeing Airline Marketing Services representative will meet with Customer’s designated representative to discuss the extent, selection, scheduling, and *** process for the program.
Customer understands that certain 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 as may be required by applicable law or governmental regulation.
| UAL-PA-03860-LA-1209416R1 | Page 1 | |||
| Promotional Support | SA-2 | |||
BOEING / UNITED AIRLINES, INC. PROPRIETARY
| Very truly yours, |
| THE BOEING COMPANY |
| By | /s/ *** | |
| Its | Attorney-In-Fact | |
| ACCEPTED AND AGREED TO this | ||
| Date: | December 16, 2013 | |
| United Airlines, Inc. | ||
| By | /s/ Xxxxxx Xxxxxxxx | |
| Its | Senior Vice President – Finance, Procurement and Treasurer | |
| UAL-PA-03860-LA-1209416R1 | Page 2 | |||
| Promotional Support | SA-2 |
BOEING / UNITED AIRLINES, INC. PROPRIETARY
