SUPPLEMENTAL AGREEMENT NO. 18 to Purchase Agreement No. 03735 between THE BOEING COMPANY and AMERICAN AIRLINES, INC. Relating to Boeing Model 737 MAX Aircraft
Exhibit 10.7
Certain confidential information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed. |
SUPPLEMENTAL AGREEMENT NO. 18
to
Purchase Agreement No. 03735
between
THE BOEING COMPANY
and
Relating to Boeing Model 737 MAX Aircraft
This SUPPLEMENTAL AGREEMENT No. 18 (SA-18), entered into as of March 12, 2021 (Effective Date), by and between THE BOEING COMPANY, a Delaware corporation with offices in Seattle, Washington (Boeing) and AMERICAN AIRLINES, INC. a Delaware corporation with offices in Fort Worth, Texas, together with its successors and permitted assigns (Customer);
WHEREAS, Boeing and Customer entered into Purchase Agreement No. 03735 dated February 1, 2013 relating to Boeing Model 737 MAX Aircraft, as amended and supplemented (Purchase Agreement) and capitalized terms used herein without definitions shall have the meanings specified therefore in such Purchase Agreement;
WHEREAS, Customer has [****] to Boeing the [****] by [****], and the [****] for the [****] delivery in Table 1R10 ([****]);
WHEREAS, Customer has [****] to Boeing the [****] in a [****] to Boeing [****] for [****];
NOW, THEREFORE, the parties agree that the Purchase Agreement is amended as set forth below and otherwise agree as follows:
1. [****].
Customer and Boeing agree to [****] of [****] from [****] to [****] pursuant to the terms and conditions in Letter Agreement No. AAL-PA-03735-LA-2002743, entitled “[****]” ([****]).
PA 03735 SA-18, Page 1
BOEING PROPRIETARY
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2. Table of Contents.
The “Table Of Contents” to the Purchase Agreement referencing SA-17 in the footer is deleted in its entirety and is replaced with the new “Table Of Contents” (attached hereto) referencing SA-18 in the footer to reflect changes made to the Purchase Agreement by this SA-18. Such new Table of Contents is hereby incorporated into the Purchase Agreement in replacement of its predecessor.
3. Tables.
3.1 Table 1R10. Table 1R10, entitled “Base Weight 737-8 Aircraft Delivery, Description, Price, and Advance Payments” referencing SA-17 in the footer is deleted in its entirety and replaced with Table 1R11, entitled “737-8 Aircraft Delivery, Description, Price, and Advance Payments” (attached hereto) referencing SA-18 in the footer (Table 1R11). Table 1R11 is hereby incorporated into the Purchase Agreement in replacement of Table 1R10. [****].
3.2 Table 1-3R4. Table 1-3R4 entitled “[****] Aircraft Delivery, Description, Price, and Advance Payments” referencing SA-17 in the footer is deleted in its entirety and replaced with Table 1-3R5, entitled “[****] Aircraft Delivery, Description, Price, and Advance Payments” (attached hereto) referencing SA-18 in the footer (Table 1-3R5). Table 1-3R5 is hereby incorporated into the Purchase Agreement in replacement of Table 1-3R4. [****].
4. Miscellaneous.
4.1 The Purchase Agreement is amended as set forth above by the revised Table of Contents, Table 1R11, and Table 1-3R5. All other terms and conditions of the Purchase Agreement remain unchanged and are in full force and effect.
4.2 References in the Purchase Agreement and any supplemental agreements and associated letter agreements to “Table 1” or “Table 1R2” or “Table 1R3”, or “Table1R4 and Table 1-2” or “Table 1(R4) and Table 1-2”, “Table 1R5 and Table 1-2”, “Table 1R6, Table 1-2, and Table 1-3”, “Table 1R7, Table 1-2, and Table 1-3R1”,”Table 1R8, Table 1-2, and Table 1-3R2”, “Table 1R9, Table 1-2, and Table 1-3R3”, “Table 1R10, Table 1-2, and Table 1-3R4” are deemed to refer to “Table 1R11, Table 1-2, and Table 1-3R5”.
References in the Purchase Agreement and any supplemental agreements and associated letter agreements to “Table 1R4” or “Table 1R5” (where no corresponding reference to Table 1-2 is made) are deemed to refer to “Table 1R11 and Table 1-3R5”, (including without limitation, and for the avoidance of doubt, the references to Table 1R4 in Section 3 of Supplemental Agreement No. 9 dated April 6, 2018). However, references to Table 1R5 in Letter Agreement AAL-PA-LA-1106650R4 entitled “[****]” is deemed to only refer to Table 1R11 and the references to Table 1R5 in the Slide Letter Agreement remain references to Table 1R5.
PA 03735 SA-18, Page 2
BOEING PROPRIETARY
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References in the Purchase Agreement and any supplemental agreements and associated letter agreements to “Table 1R6”, “Table 1R7”, “Table 1R8”, “Table 1R9”, or “Table 1R10” (where no corresponding reference to either Table 1-2 or Table 1-3 is made) are deemed to refer to only “Table 1R11”.
Additionally, for the avoidance of doubt, references in the Purchase Agreement and any supplemental agreements and associated letter agreements to “Table 1-2” (where no corresponding reference to Table 1R4 or Table 1R5 is made) remain references to “Table 1-2”.
4.3 Upon the execution of this SA-18, Boeing will, pursuant to Section 6.1 of the [****] Agreement, [****] to Customer the [****] for the [****] in the [****] of [****] ([****]) as shown in the table below.
[****] | |||||
[****] | [****] | ||||
[****] | [****] | ||||
[****] | [****] |
Intentionally Left Blank
PA 03735 SA-18, Page 3
BOEING PROPRIETARY
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AGREED AND ACCEPTED this
March 12, 2021
Date
THE BOEING COMPANY | AMERICAN AIRLINES, INC. | |||||||
/s/ The Boeing Company | /s/ American Airlines, Inc. | |||||||
Signature | Signature | |||||||
The Boeing Company | American Airlines, Inc. | |||||||
Printed name | Printed name | |||||||
Attorney-in-Fact | VP, Treasurer | |||||||
Title | Xxxxx |
XX 00000
SA-18
BOEING PROPRIETARY
TABLE OF CONTENTS
SA
ARTICLES NUMBER
Article 1. Quantity, Model and Description
Article 2. Delivery Schedule
Article 3. Price
Article 4. Payment
Article 5. Additional Terms
Article 6. Confidentiality
TABLE
1R11 Aircraft Information Table 18
1-2 Revised Delivery Aircraft Information Table 9
1-3R5 [****] Aircraft Delivery, Description, Price, and Advance
Payments 18
EXHIBITS
AR1 Aircraft Configuration
A2 Revised Delivery Aircraft Configuration 6
B. Aircraft Delivery Requirements and Responsibilities 9
C. Definitions
SUPPLEMENTAL EXHIBITS
AE1. [****]
BFE1. BFE Variables
CS1R1. Customer Support Variables 4
EE1. [****]
SLP1. [****]
LETTER AGREEMENTS
LA-1106648R1 Special Matters 6
LA-1106649 [****]
LA-1106650R4 [****] 11
LA-1106651R2 [****] 11
LA-1106652 Aircraft Model Substitution
XX-0000000 XXXX Terms Revisions for MAX
LA-1106655 Open Matters—737 MAX Withdrawn 6
LA-1106656R1 [****] 1
LA-0000000X0 [****] 2
LA-1106663R1 [****] 2
LA-1106664R1 [****] 2
LA-1106658 [****]
LA-1106659R2 [****] 10
LA-1106660 Spare Parts Initial Provisioning
PA 03735 TABLE OF CONTENTS, Page 1 of 2 SA-18
BOEING PROPRIETARY
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TABLE OF CONTETS, continued
SA
LETTER AGREEMENTS, continued NUMBER
LA-1106661R2 [****] 2
LA-1106667 [****]
LA-1106668R1 [****] 8
LA-1106669 [****]
LA-1106670 Confidentiality
LA-1106671R1 Miscellaneous Commitments 1
LA-1106672 Extended Warranty Option
LA-0000000X0* [****] 4
LA-1106677 Optional Features Comfort Letter
LA-1600073 [****] 4
LA-1600852 [****] 5
LA-1603773 [****] 5
LA-1605402 [****] 6
LA-1700919 [****] 7
LA-1801206 [****] 9
LA-2002704 [****] 11
LA-2002743 [****] 11
LA-2003342 [****] 11
LA-2003486 [****] 14
* - This is an intended gap as there are no Letter Agreements LA-1106674 through LA-1106676 incorporated by the Purchase Agreement.
PA 03735 TABLE OF CONTENTS, Page 2 of 2 SA-18
BOEING PROPRIETARY
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Table 1R11 To
Purchase Agreement No. PA-03735
737-8 Aircraft Delivery, Description, Price and Advance Payments
Airframe Model/MTOW: | 737-8 | [****] pounds | Detail Specification: | [****] 2 | ||||||||||
Engine Model/Thrust: | CFMLEAP-1B25 | [****] 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: | $[****] | |||||||||||||
Seller Purchased Equipment (SPE) Estimate: | $[****] | |||||||||||||
LIFT Seats Provided by Boeing (Estimate): | $[****] | |||||||||||||
Deposit per Aircraft: | $[****] |
Delivery Date | Number of Aircraft | Escalation Factor (Airframe) | Manufacturer Serial Number | Nominal Delivery Month | Escalation Estimate Adv Payment Base Price Per A/P | Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery): | |||||||||||||||||||||||
At Signing [****] | [****] [****] | [****] [****] | Total [****] | ||||||||||||||||||||||||||
[****]-2017 | 1 | [****] | 44459 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2017 | 1 | [****] | 44463 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2017 | 1 | [****] | 44465 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2017 | 1 | [****] | 44446 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2018 | 1 | [****] | 44447 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2018 | 1 | [****] | 44451 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2018 | 1 | [****] | 44448 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2018 | 1 | [****] | 44449 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2018 | 1 | [****] | 44455 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2018 | 1 | [****] | 44450 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2018 | 1 | [****] | 44452 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] |
XX-00
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Table 1R11 To
Purchase Agreement No. PA-03735
737-8 Aircraft Delivery, Description, Price and Advance Payments
Delivery Date | Number of Aircraft | Escalation Factor (Airframe) | Manufacturer Serial Number | Nominal Delivery Month | Escalation Estimate Adv Payment Base Price Per A/P | Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery): | |||||||||||||||||||||||
At Signing [****] | [****] [****] | [****] [****] | Total [****] | ||||||||||||||||||||||||||
[****]-2018 | 1 | [****] | 44453 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2018 | 1 | [****] | 44454 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2018 | 1 | [****] | 44456 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2018 | 1 | [****] | 44457 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2018 | 1 | [****] | 44458 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2018 | 1 | [****] | 44460 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2018 | 1 | [****] | 44461 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2018 | 1 | [****] | 44462 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2018 | 1 | [****] | 44464 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2018 | 1 | [****] | 44466 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2019 | 1 | [****] | 44467 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2019 | 1 | [****] | 44468 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2019 | 1 | [****] | 44469 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2019 | 1 | [****] | 44471 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2019 | 1 | [****] | 44470 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2019 | 1 | [****] | 44472 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2019 | 1 | [****] | 44473 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2019 | 1 | [****] | 44474 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2019 | 1 | [****] | 44476 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2019 | 1 | [****] | 44475 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] |
XX-00
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Table 1R11 To
Purchase Agreement No. PA-03735
737-8 Aircraft Delivery, Description, Price and Advance Payments
Delivery Date | Number of Aircraft | Escalation Factor (Airframe) | Manufacturer Serial Number | Nominal Delivery Month | Escalation Estimate Adv Payment Base Price Per A/P | Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery): | |||||||||||||||||||||||
At Signing [****] | [****] [****] | [****] [****] | Total [****] | ||||||||||||||||||||||||||
[****]-2019 | 1 | [****] | 44477 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2019 | 1 | [****] | 44479 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2019 | 1 | [****] | 44478 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2019 | 1 | [****] | 44481 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2019 | 1 | [****] | 44480 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2019 | 1 | [****] | 44482 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2019 | 1 | [****] | 44483 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2019 | 1 | [****] | 44484 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2019 | 1 | [****] | 44485 | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | ||||||||||||||||||||
[****]-2020 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | |||||||||||||||||||||
[****]-2020 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | |||||||||||||||||||||
[****]-2021 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | |||||||||||||||||||||
[****]-2021 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | |||||||||||||||||||||
[****]-2021 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | |||||||||||||||||||||
[****]-2021 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | |||||||||||||||||||||
[****]-2021 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | |||||||||||||||||||||
[****]-2021 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | |||||||||||||||||||||
[****]-2021 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | |||||||||||||||||||||
[****]-2021 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] |
XX-00
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Table 1R11 To
Purchase Agreement No. PA-03735
737-8 Aircraft Delivery, Description, Price and Advance Payments
Delivery Date | Number of Aircraft | Escalation Factor (Airframe) | Manufacturer Serial Number | Nominal Delivery Month | Escalation Estimate Adv Payment Base Price Per A/P | Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery): | |||||||||||||||||||||||
At Signing [****] | [****] [****] | [****] [****] | Total [****] | ||||||||||||||||||||||||||
[****]-2021 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | |||||||||||||||||||||
[****]-2021 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] |
Total 00
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Table 1-3R5 To
Purchase Agreement No. PA-03735
[****] Aircraft Delivery, Description, Price and Advance Payments
Airframe Model/MTOW: | 737-8 | [****] pounds | Detail Specification: | [****] 2 | ||||||||||
Engine Model/Thrust: | CFMLEAP-1B25 | [****] 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: | $[****] | |||||||||||||
Seller Purchased Equipment (SPE) Estimate: | $[****] | |||||||||||||
LIFT Seats Provided by Boeing (Estimate): | $[****] | |||||||||||||
Deposit per Aircraft: | $[****] |
Delivery Date | Number of Aircraft | Escalation Factor (Airframe) | Manufacturer Serial Number | Nominal Delivery Month | Escalation Estimate Adv Payment Base Price Per A/P | Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery): | |||||||||||||||||||||||
At Signing [****] | [****] [****] | [****] [****] | Total [****] | ||||||||||||||||||||||||||
[****]-2023 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | |||||||||||||||||||||
[****]-2023 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | |||||||||||||||||||||
[****]-2023 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | |||||||||||||||||||||
[****]-2023 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | |||||||||||||||||||||
[****]-2023 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | |||||||||||||||||||||
[****]-2023 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | |||||||||||||||||||||
[****]-2023 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] | |||||||||||||||||||||
[****]-2023 | 1 | [****] | N/A | $[****] | $[****] | $[****] | $[****] | $[****] |
Total 0
XX-00
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