SUPPLEMENTAL AGREEMENT NO. 7 to Purchase Agreement No. 03735 between THE BOEING COMPANY and AMERICAN AIRLINES, INC. Relating to Boeing Model 737 MAX Aircraft
Exhibit 10.77
| Certain information contained in this document, marked by brackets, has been omitted because it is both (i) not material and (ii) is the type that the registrant treats as private or confidential. | ||
SUPPLEMENTAL AGREEMENT NO. 7
to
Purchase Agreement No. 03735
between
THE BOEING COMPANY
and
Relating to Boeing Model 737 MAX Aircraft
This SUPPLEMENTAL AGREEMENT No. 7 (SA-7), entered into as of March 2, 2017 (SA-6 Effective Date), by and between THE BOEING COMPANY, a Delaware corporation with offices in Washington state (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 and Boeing desire to add Letter Agreement AAL-PA-03735-LA-1700919 entitled “[****]”; and
NOW, THEREFORE, the parties agree that the Purchase Agreement is amended as set forth below and otherwise agree as follows:
| PA 03735 | SA-7, Page 1 | |||||||||||||
BOEING PROPRIETARY
1 Table of Contents.
The “Table Of Contents” to the Purchase Agreement referencing SA-6 in the footer is deleted in its entirety and is replaced with the new “Table Of Contents” (attached hereto) referencing SA-7 in the footer to reflect changes made to the Purchase Agreement by this SA-7. Such new Table of Contents is hereby incorporated into the Purchase Agreement in replacement of its predecessor.
2 Letter Agreement.
Letter Agreement Xx. XXX-XX-00000-XX-0000000 entitled “[****]” is hereby incorporated into the Purchase Agreement (New Letter Agreement).
3 Miscellaneous.
3.1 The Purchase Agreement is amended as set forth above, by the New Letter Agreement. All other terms and conditions of the Purchase Agreement remain unchanged and are in full force and effect.
Intentionally Left Blank
| PA 03735 | SA-7, Page 2 | |||||||||||||
BOEING PROPRIETARY
| AGREED AND ACCEPTED this | ||||||||||||||
| March 2, 2017 | ||||||||||||||
| Date | ||||||||||||||
| THE BOEING COMPANY | AMERICAN AIRLINES, INC. | |||||||||||||
| The Boeing Company | American Airlines, Inc. | |||||||||||||
| Signature | Signature | |||||||||||||
| /s/ The Boeing Company | /s/ American Airlines, Inc. | |||||||||||||
| Printed name | Printed name | |||||||||||||
| Attorney-in-Fact | Vice President & Treasurer | |||||||||||||
| Title | Xxxxx | |||||||||||||
| XX 00000 | SA-7, Page 3 | |||||||||||||
BOEING PROPRIETARY
TABLE OF CONTENTS
| SA NUMBER | ||||||||||||||||||||
ARTICLES | ||||||||||||||||||||
Article 1. | Quantity, Model and Description | |||||||||||||||||||
Article 2. | Delivery Schedule | |||||||||||||||||||
Article 3. | Price | |||||||||||||||||||
Article 4. | Payment | |||||||||||||||||||
Article 5. | Additional Terms | |||||||||||||||||||
Article 6. | Confidentiality | |||||||||||||||||||
TABLE | ||||||||||||||||||||
1R3. | Aircraft Information Table | 6 | ||||||||||||||||||
EXHIBITS | ||||||||||||||||||||
AR1 | Aircraft Configuration | 6 | ||||||||||||||||||
B. | Aircraft Delivery Requirements and Responsibilities | |||||||||||||||||||
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-1106650R2 | [****] | 3 | ||||||||||||||||||
| LA-1106651 | [****] | |||||||||||||||||||
| 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-1106663 R1 | [****] | 2 | ||||||||||||||||||
| LA-1106664 R1 | [****] | 2 | ||||||||||||||||||
| LA-1106658 | [****] | |||||||||||||||||||
| LA-1106659R1 | [****] | 1 | ||||||||||||||||||
| LA-1106660 | Spare Parts Initial Provisioning | |||||||||||||||||||
| PA-03735 | TABLE OF CONTENTS, Page 1 of 2 | SA-7 | ||||||||||||
BOEING PROPRIETARY
TABLE OF CONTENTS, continued
| LETTER AGREEMENTS, continued | SA NUMBER | |||||||||||||||||||
LA-1106661R2 | [****] | 2 | ||||||||||||||||||
LA-1106667 | [****] | |||||||||||||||||||
LA-1106668 | [****] | |||||||||||||||||||
LA-1106669 | [****] | |||||||||||||||||||
XX-0000000 | Xxxxxxxxxxxxxxx | |||||||||||||||||||
LA-1106671R1 | Miscellaneous Commitments | 1 | ||||||||||||||||||
LA-1106672 | [****] | |||||||||||||||||||
LA-0000000X0* | CS1 Special Matters | 4 | ||||||||||||||||||
LA-1106677 | [****] | |||||||||||||||||||
LA-1600073 | [****] | 4 | ||||||||||||||||||
LA-1600852 | [****] | 5 | ||||||||||||||||||
LA-1603773 | [****] | 5 | ||||||||||||||||||
LA-1605402 | [****] | 6 | ||||||||||||||||||
LA-1700919 | [****] | 7 | ||||||||||||||||||
* - 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 BOEING PROPRIETARY | SA-7 | ||||||||||||
 | The Boeing Company | |||||||
| X.X. Xxx 0000 | ||||||||
| Xxxxxxx, XX 00000-0000 | ||||||||
AAL-PA-03735-LA-1700919
X.X. Xxx 000000
Xxxxxx-Xxxx Xxxxx Xxxxxxx, Xxxxx 00000-0000
Subject: [****]
Reference: Purchase Agreement No. 03735 (Purchase Agreement) between The Boeing Company (Boeing) and American Airlines, Inc. (Customer) relating to Model 737-8 MAX aircraft (Aircraft)
This letter agreement (Letter Agreement) is entered into on the date below and amends and supplements the Purchase Agreement referenced above. All capitalized terms used in but not otherwise defined in this Letter Agreement shall have the same meaning as in the Purchase Agreement.
Customer has [****] that Boeing [****] in the Aircraft certain [****] which is more fully described in the options listed in Attachment A to this Letter Agreement (collectively referred to as [****]) in accordance with the terms and conditions of this Letter Agreement. [****] that is identified in the Detail Specification for the Aircraft is [****] that Boeing is [****] in accordance with Section 2 below, but is otherwise [****] for purposes of the Purchase Agreement.
The [****] during the [****] and manufacture of the Aircraft to [****] at the time of delivery of the Aircraft. To achieve this, Boeing and Customer will [****] in a manner consistent with (i) the terms and conditions [****]; and (ii) [****].
1. Customer Responsibilities.
1.1 [****]. Customer has [****].
1.2 [****]. Customer will provide [****].
1.3 [****]. Customer will [****]. Such [****]:
1.3.1 specify [****];
1.3.2 specify the [****]; and
1.3.3 require [****].
Customer shall [****]
Additionally, Customer may [****].
AAL-PA-03735-LA-1700919 [****] | SA 7 Page 1 | |||||||||||||
BOEING PROPRIETARY
2. Boeing Responsibilities.
2.1 Boeing shall:
2.1.1 perform the [****] described in Attachment B to this Letter Agreement;
2.1.2 assist [****];
2.1.3 approve the [****];
2.1.4 confirm the [****]
2.1.5 place [****];
2.1.6 manage the [****];
2.1.7 pay the [****]
2.1.8 coordinate [****];
2.1.9 provide [****];
2.1.10 ensure that the [****];
2.1.11 [****] in the Aircraft, in accordance with the terms and conditions of the Purchase Agreement (including, without limitation, the [****]) the [****];
2.1.12 ensure that at the time of Aircraft delivery, the [****] referenced in Attachment A to this Letter Agreement;
2.1.13 if necessary, and upon request of Customer, use [****] to assist Customer in causing [****] under the [****] with the objective of delivery of the Aircraft on the delivery date (that is scheduled in accordance with Section 6.1 of the AGTA) with the [****] in the Aircraft and certified by the FAA; and
2.1.14 prior to delivery of the applicable Aircraft, obtain [****] of the Aircraft with [****].
3. Changes.
3.1 Customer and [****] may change the [****] of Boeing. Customer may [****] at any time, and Boeing shall [****] in a timely manner. Any [****] that Boeing gives to a [****] shall be subject to [****] through Boeing’s [****] of the Purchase Agreement.
3.2 Boeing and Customer recognize that the [****] nature of the [****] in order to ensure (i) [****] with the Aircraft and all [****], and (ii) [****] of the Aircraft with the [****]. In such event, Boeing will notify Customer and [****]. If, within [****] as may be mutually agreed in writing) after such notification, (i) Customer and Boeing [****] or [****] and (ii) so long as Boeing has [****] with Customer to [****], then any [****] in delivery of the Aircraft will be [****] and [****]. The [****] of any mutually agreed [****] may result in Boeing [****] contained in Attachment A to this Letter Agreement.
AAL-PA-03735-LA-1700919 [****] | SA 7 Page 2 | |||||||||||||
BOEING PROPRIETARY
3.3 Boeing’s [****] of the Aircraft as it relates to [****] as described in the options listed in Attachment A to this Letter Agreement, as such Attachment A may be amended from time to time.
4. [****].
4.1 Boeing and Customer agree to follow the sequential steps identified in this Section 5 to [****]:
4.1.1 Boeing shall [****].
4.1.2 Within [****] or other course of action.
4.2 If Boeing and Customer are [****] on an alternate [****] or course of action within such time, the [****] to Boeing in Section 7 of this Letter Agreement shall apply.
5. Proprietary Rights.
Boeing’s [****] will not impose upon Boeing any [****] Customer may have in the [****].
6. Exhibits B and C to the AGTA.
[****] for the purposes of Exhibit B to the AGTA, entitled “Customer Support Document”, and Exhibit C to the AGTA, entitled “Product Assurance Document”.
7. Boeing [****].
7.1 If Customer [****] as provided in this Letter Agreement or if [****] (for any reason [****] under the Boeing Purchase Order terms) to [****] in accordance with the [****], then, in addition to [****], Boeing will
7.1.1 [****] and
7.1.1.1 if the [****] of the Exhibit A to the AGTA entitled “Buyer Furnished Equipment Provisions Document” (AGTA Exhibit A BFE Provisions Document), then the provisions of Article 7, [****], of the AGTA [****];
7.1.1.2 if the [****] of the AGTA Exhibit A BFE Provisions Document, then Boeing will [****];
7.1.2 [****]; and/or
7.1.3 [****] by the amount of Boeing’s [****], including but not limited to, (i) [****] by Boeing, (ii) any [****] as established by Boeing and agreed to by the [****] and (iii) [****]; and [****] from any applicable [****].
7.2 Boeing will use [****] described in Section 7.1.3. Notwithstanding the last clause of 7.1.3, Boeing has no [****].
AAL-PA-03735-LA-1700919 [****] | SA 7 Page 3 | |||||||||||||
BOEING PROPRIETARY
7.3 If Boeing [****] set forth herein, then any [****] of the Aircraft, to the [****], will be the [****] of Boeing.
8. [****].
8.1 Estimated [****]. Boeing and Customer agree that the [****].
8.2 Aircraft [****]. The Aircraft [****] will be adjusted at the time of Aircraft Delivery to reflect the [****] and any associated [****] by Boeing to [****] that are otherwise [****] by Boeing.
9. [****].
[****] will [****] with Boeing until the Aircraft [****] to Customer. [****] will remain with the entity that is in [****] prior to Aircraft Delivery.
10. Confidential Treatment.
Customer understands and agrees that the information contained herein represents confidential business information and has value precisely because it is not available generally or to other parties. This Letter Agreement shall be subject to the terms and conditions of Letter Agreement Xx. XXX-XX-00000-XX-0000000 entitled “Confidentiality”.
Intentionally Left Blank
AAL-PA-03735-LA-1700919 [****] | SA 7 Page 4 | |||||||||||||
BOEING PROPRIETARY
If the foregoing correctly sets forth your understanding of our agreement with respect to the matters treated above, please indicate your acceptance and approval below.
Very truly yours,
| THE BOEING COMPANY | ||||||||
| By | /s/ The Boeing Company | |||||||
| Its | Attorney-In-Fact | |||||||
| ACCEPTED AND AGREED TO this | ||||||||
| Date: | March 2, 2017 | |||||||
| AMERICAN AIRLINES, INC. | ||||||||
| By | /s/ American Airlines, Inc. | |||||||
| Its | Vice President & Treasurer | |||||||
AAL-PA-03735-LA-1700919 [****] | SA 7 Page 5 | |||||||||||||
BOEING PROPRIETARY
Attachment A
[****]
The following [****] describe(s) the items of equipment that under the terms and conditions of this Letter Agreement are considered to be [****]. Each such [****] is fully described in the [****] as described in Exhibit A to the Purchase Agreement. Final configuration will be based on Customer acceptance of any or all [****] listed below.
[****] Number and Title
[****]
[****]
[****]
[****]
AAL-PA-03735-LA-1700919 [****] | SA 7 Page 6 | |||||||||||||
BOEING PROPRIETARY
Attachment B
[****]
This Attachment B describes the functions that Boeing will perform as [****] to support (i) the [****] and (ii) the [****] on the Aircraft.
1. [****].
Boeing will perform the following functions [****]. Boeing will have [****] which, in Boeing’s reasonable opinion, [****]. Boeing will be [****] for:
(i) [****];
(ii) [****];
(iii) [****];
(iv) [****];
(v) [****];
(vi) [****];
(vii) [****]; and
(viii) [****].
2. [****].
Boeing’s [****] will include the functions of [****]. As [****], Boeing will perform the following functions:
(i) as required, [****];
(ii) [****] Boeing, Customer and [****]; and
(iii) [****].
AAL-PA-03735-LA-1700919 [****] | SA 7 Page 7 | |||||||||||||
BOEING PROPRIETARY
