PURCHASE AGREEMENT NUMBER 3323 between THE BOEING COMPANY and XIAMEN AIRLINES Relating to Boeing Model 737-85C Aircraft
Exhibit 4.7
***
Indicates confidential material omitted pursuant to a request for confidential
treatment and filed with the Securities and Exchange Commission separately with
a request for confidential treatment.
PURCHASE
AGREEMENT NUMBER 3323
between
THE
BOEING COMPANY
and
XIAMEN
AIRLINES
Relating
to Boeing Model 737-85C Aircraft
|
P.A.
No. 3323
|
||
|
BOEING
PROPRIETARY
|
TABLE OF
CONTENTS
|
SA
|
||||
|
NUMBER
|
||||
|
ARTICLES
|
||||
|
1.
|
Quantity,
Model and Description
|
|
||
|
2.
|
Delivery
Schedule
|
|
||
|
3.
|
Price
|
|
||
|
4.
|
Payment
|
|
||
|
5.
|
Miscellaneous
|
|
||
|
TABLE
|
||||
|
1.
|
Aircraft
Information Table
|
|
||
|
EXHIBIT
|
||||
|
A.
|
Aircraft
Configuration
|
|
||
|
B.
|
Aircraft
Delivery Requirements and Responsibilities
|
|
||
|
SUPPLEMENTAL
EXHIBITS
|
||||
|
AE1.
|
Escalation
Adjustment/Airframe and Optional Features
|
|
||
|
BFE1.
|
BFE
Variables
|
|
||
|
CS1.
|
Customer
Support Variables
|
|
||
|
EE1.
|
Engine
Escalation/Engine Warranty and Patent Indemnity
|
|
||
|
SLP1.
|
Service
Life Policy Components
|
|
||
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
i
| LETTER AGREEMENTS | ||||
|
3323-01
|
737
Spare Parts Initial Provisioning
|
|
||
|
3323-02
|
Aircraft
Model Substitution
|
|
||
|
3323-03
|
Boeing
Purchase of Buyer Furnished Equipment
|
|
||
|
3323-04
|
Government
Approval
|
|
||
|
3323-05
|
Loading
of Customer Software
|
|
||
|
3323-06
|
Right
to Purchase Additional Aircraft
|
|
||
|
3323-07
|
Seller
Purchased Equipment
|
|
||
|
3323-08
|
Special
Matters
|
|
||
|
6-1165-CKR-1446
|
Liquidated
Damages Non-Excusable Delay
|
|
||
|
6-1165-CKR-1447
|
Aircraft
Performance Guarantees
|
|
||
|
6-1165-CKR-1448
|
Promotional
Support (Follow-on Aircraft)
|
|
||
|
6-1165-CKR-1449
|
Volume
Agreement
|
|
||
|
6-1165-CKR-1450
|
Payment
Matters
|
|
||
|
6-1165-CKR-1451
|
Shareholder
Approval
|
|
||
|
6-1165-CKR-1452
|
Clarifications
and Understandings
|
|
||
|
6-1165-CKR-1454
|
Special
Escalation Program
|
|
||
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
ii
Purchase
Agreement No. 3323
between
The
Boeing Company
and
Xiamen
Airlines
This
Purchase Agreement No. 3323 between The Boeing Company, a Delaware corporation.
(Boeing) and Xiamen
Airlines, a corporation organized under the laws of China, (Customer) relating to the
purchase and sale of
Model 737-85C aircraft
together with all tables, exhibits, supplemental exhibits, letter agreements and
other attachments thereto, if any, (Purchase Agreement)
incorporates the terms and conditions of the Aircraft General Terms
Agreement dated as of November 10, 2003
between the parties, identified as AGTA-XIA (AGTA).
|
Article
1.
|
Quantity, Model and
Description.
|
The
aircraft to be delivered to Customer will be designated as Model 737-85C
aircraft (the Aircraft).
Boeing will manufacture and sell to Customer Aircraft conforming to the
configuration described in Exhibit A in the quantities listed in Table 1 to the
Purchase Agreement.
|
Article
2.
|
Delivery
Schedule.
|
The
scheduled months of delivery of the Aircraft are listed in the attached Table 1.
Exhibit B describes certain responsibilities for both Customer and Boeing in
order to accomplish the delivery of the Aircraft.
|
Article
3.
|
Price.
|
3.1 Aircraft Basic Price.
The Aircraft Basic Price is listed in Table 1 and is subject to escalation in
accordance with the terms of this Purchase Agreement.
3.2 Advance Payment Base
Prices. The Advance Payment Base Prices listed in Table 1 were calculated
utilizing the latest escalation factors available to Boeing on the date of this
Purchase Agreement projected to the month of scheduled delivery.
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
1
|
Article
4.
|
Payment.
|
4.1 Boeing
acknowledges receipt of a deposit in the amount shown in Table 1 for each
Aircraft (Deposit).
4.2 The
standard advance payment schedule for the Model 737-85C aircraft requires
Customer to make certain advance payments, expressed in a percentage of the
Advance Payment Base Price of each Aircraft beginning with a payment of 1%, less
the Deposit, on the effective date of the Purchase Agreement for the Aircraft.
Additional advance payments for each Aircraft are due as specified in and on the
first business day of the months listed in the attached Table 1.
4.3 For
any Aircraft whose scheduled month of delivery is less than 24 months from the
date of this Purchase Agreement, the total amount of advance payments due for
payment upon signing of this Purchase Agreement will include all advance
payments which are past due in accordance with the standard advance payment
schedule set forth in paragraph 4.2 above.
4.4 Customer
will pay the balance of the Aircraft Price of each Aircraft at
delivery.
|
Article
5.
|
Additional
Terms.
|
5.1 Aircraft Information
Table. Table 1 consolidates information contained in Articles 1,2,3 and 4
with respect to (i) quantity of Aircraft, (ii) applicable Detail Specification,
(in) month and year of scheduled deliveries, (iv) Aircraft Basic Price, (v)
applicable escalation factors and (vi) Advance Payment Base Prices and advance
payments and their schedules.
5.2 Escalation
Adjustment/Airframe and Optional Features. Supplemental Exhibit AE1
contains the applicable airframe and optional features escalation
formula.
5.3 Buyer Furnished Equipment
Variables. Supplemental Exhibit BFE1 contains vendor selection dates and
other variables applicable to the Aircraft.
5.4 Customer Support
Variables. Information, training, services and other things furnished by
Boeing in support of introduction of the Aircraft into Customer’s fleet are
described in Supplemental Exhibit CS1. The level of support to be provided under
Supplemental Exhibit CS1 (the Entitlements) assumes that at the time of delivery
of Customer’s first Aircraft under the Purchase Agreement, Customer has taken
possession of a 737-85C aircraft whether such aircraft was purchased, leased or
otherwise obtained by Customer from Boeing or another party. Under no
circumstances under the Purchase Agreement or any other agreement will Boeing
provide the Entitlements more than once to support Customer’s operation of
737-85C aircraft.
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
2
5.5 Engine Escalation
Variables. Supplemental Exhibit EE1 describes the applicable engine
escalation formula and contains the engine warranty and the engine patent
indemnity for the Aircraft.
5.6 Service Life Policy
Component Variables. Supplemental Exhibit SLP1 lists the SLP Components
covered by the Service Life Policy for the Aircraft.
5.7 Public Announcement.
Boeing reserves the right to make a public announcement regarding Customer’s
purchase of the Aircraft upon approval of Boeing’s press release by Customer’s
public relations department or other authorized representative.
5.8 Negotiated Agreement; Entire
Agreement. This Purchase Agreement, including the provisions of Article
8.2 of the AGTA relating to insurance, and Article 11 of Part 2 of Exhibit C of
the AGTA relating to DISCLAIMER AND
RELEASE and EXCLUSION OF CONSEQUENTIAL
AND OTHER DAMAGES, has been the subject of discussion and negotiation and
is understood by the parties; the Aircraft Price and other agreements of the
parties stated in this Purchase Agreement were arrived at in consideration of
such provisions. This Purchase Agreement, including the AGTA, contains the
entire agreement between the parties and supersedes all previous proposals,
understandings, commitments or representations whatsoever, oral or written, and
may be changed only in writing signed by authorized representatives of the
parties.
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
3
DATED AS
OF April 18, 2008
|
XIAMEN
AIRLINES
|
THE
BOEING COMPANY
|
|||
|
By
|
/s/
Xxxx Xxxxx Hua
|
By
|
/s/
Xxxxxxxxx X. Xxxxxx
|
|
|
Its
|
Its
|
Attorney-In-Fact
|
||
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
4
Table
1 to
Purchase
Agreement No. 3323
Aircraft
Delivery, Description, Price and Advance Payments
|
Airframe
Model/MTOW: 000-000
|
000,500
pounds
|
Detail
Specification: X000X00XXXX00X-0
XXX TBD (TBD)
|
||
|
Engine
Model/Thrust: CFM56-7B24
|
24,000
pounds
|
Airframe
Price Base Year/Escalation Formula:
|
Jul-07
|
ECI-MFG/CPI
|
|
Airframe
Price:
|
*** |
Engine
Price Base Year/Escalation Formula:
|
N/A
|
N/A
|
|
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:
|
*** | |||
|
Refundable Deposit/Aircraft at Proposal Accept:
|
*** | |||
|
Escalation
|
Escalation Estimate
|
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
|
|||||||
|
Delivery
Date
|
Number of
Aircraft
|
Factor
(Airframe)
|
Adv
Payment Base
Price
Per A/P
|
At Signing
1%
|
24
Mos.
4%
|
21/18/12/9/6 Mos.
5%
|
Total
30%
|
||
|
Jan-2014
|
1
|
***
|
***
|
***
|
***
|
***
|
***
|
||
|
Apr-2014
|
1
|
***
|
***
|
***
|
***
|
***
|
***
|
||
|
May-2014
|
1
|
***
|
***
|
***
|
***
|
***
|
***
|
||
|
Jun-2014
|
1
|
***
|
***
|
***
|
***
|
***
|
***
|
||
|
Jul-2014
|
2
|
***
|
***
|
***
|
***
|
***
|
***
|
||
|
Aug-2014
|
1
|
***
|
***
|
***
|
***
|
***
|
***
|
||
|
Sep-2014
|
1
|
***
|
***
|
***
|
***
|
***
|
***
|
||
|
Oct-2014
|
1
|
***
|
***
|
***
|
***
|
***
|
***
|
||
|
XIA
|
||
|
48356-1F.TXT
|
Boeing
Proprietary
|
|
Page
1
Table
1 to
Purchase
Agreement No. 3323
Aircraft
Delivery, Description, Price and Advance Payments
|
Escalation
|
Escalation Estimate
|
Advance Payment Per Aircraft (Amts. Due/Mos. Prior to Delivery):
|
|||||||
|
Delivery
Date
|
Number of
Aircraft
|
Factor
(Airframe)
|
Adv
Payment Base
Price
Per A/P
|
At Signing
1%
|
24
Mos.
4%
|
21/18/12/9/6 Mos.
5%
|
Total
30%
|
||
|
Jan-2015
|
1
|
***
|
***
|
***
|
***
|
***
|
***
|
||
|
Mar-2015
|
1
|
***
|
***
|
***
|
***
|
***
|
***
|
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|
May-2015
|
1
|
***
|
***
|
***
|
***
|
***
|
***
|
||
|
Jun-2015
|
1
|
***
|
***
|
***
|
***
|
***
|
***
|
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|
Jul-2015
|
2
|
***
|
***
|
***
|
***
|
***
|
***
|
||
|
Aug-2015
|
2
|
***
|
***
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***
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***
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***
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***
|
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|
Sep-2015
|
1
|
***
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***
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|
***
|
***
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***
|
||
|
Oct-2015
|
2
|
***
|
***
|
***
|
***
|
***
|
***
|
||
|
Total:
|
20
|
|
***
|
***
|
***
|
***
|
***
|
||
|
XIA
|
||
|
48356-1F.TXT
|
Boeing
Proprietary
|
|
Page
2
AIRCRAFT
CONFIGURATION
between
THE
BOEING COMPANY
and
XIAMEN
AIRLINES
Exhibit A
to Purchase Agreement Number 3323
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
A
AIRCRAFT
CONFIGURATION
Dated
April 18, 2008
relating
to
BOEING
MODEL 737-85C AIRCRAFT
The
Detail Specification is Boeing Detail Specification D019A001XIA38P-1 Revision
TBD dated as of TBD. Such Detail Specification incorporates the Options listed
below, including the effects on Manufacturer’s Empty Weight (MEW) and Operating
Empty Weight (OEW). As soon as practicable, Boeing will furnish to Customer
copies of the Detail Specification, which copies will reflect such Options. The
Aircraft Basic Price reflects and includes all effects of such Options, except
such Aircraft Basic Price does not include the price effects of any Buyer
Furnished Equipment or Seller Purchased Equipment.
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
A-1
|
Exhibit
A to
|
||||
|
Purchase
Agreement No. 3323
|
||||
|
Page
2
|
||||
|
2007
$
|
||||
|
Price
|
||||
|
CR
|
Title
|
Per
A/C
|
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P.A.
No. 3323
|
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|
BOEING
PROPRIETARY
|
A-2
|
Exhibit
A to
|
||||
|
Purchase
Agreement No. 3323
|
||||
|
Page
3
|
||||
|
2007
$
|
||||
|
Price
|
||||
|
CR
|
Title
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Per
A/C
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|
P.A.
No. 3323
|
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|
|
BOEING
PROPRIETARY
|
A-3
|
Exhibit
A to
|
||||
|
Purchase
Agreement No. 3323
|
||||
|
Page
4
|
||||
|
2007
$
|
||||
|
Price
|
||||
|
CR
|
Title
|
Per
A/C
|
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|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
A-4
|
Exhibit
A to
|
||||
|
Purchase
Agreement No. 3323
|
||||
|
Page
5
|
||||
|
2007
$
|
||||
|
Price
|
||||
|
CR
|
Title
|
Per
A/C
|
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***
|
||
|
***
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***
|
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|
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|
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|
***
|
||
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
A-5
|
Exhibit
A to
|
||||
|
Purchase
Agreement No. 3323
|
||||
|
Page
6
|
||||
|
2007
$
|
||||
|
Price
|
||||
|
CR
|
Title
|
Per
A/C
|
||
|
***
|
***
|
***
|
||
|
***
|
***
|
***
|
||
|
***
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|
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|
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|
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|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
A-6
|
Exhibit
A to
|
||||
|
Purchase
Agreement No. 3323
|
||||
|
Page
7
|
||||
|
2007
$
|
||||
|
Price
|
||||
|
CR
|
Title
|
Per
A/C
|
||
|
***
|
***
|
***
|
||
|
***
|
***
|
***
|
||
|
***
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***
|
***
|
||
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
A-7
|
Exhibit
A to
|
||||
|
Purchase
Agreement No. 3323
|
||||
|
Page
8
|
||||
|
2007
$
|
||||
|
Price
|
||||
|
CR
|
Title
|
Per
A/C
|
||
|
***
|
***
|
***
|
||
|
***
|
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|
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|
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|
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|
***
|
***
|
***
|
||
***
|
2007
$
|
||||
|
Price
|
||||
|
CR
|
Title
|
Per
A/C
|
||
|
***
|
***
|
***
|
||
|
***
|
***
|
***
|
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|
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|
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|
***
|
||
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
A-8
AIRCRAFT
DELIVERY REQUIREMENTS AND RESPONSIBILITIES
between
THE
BOEING COMPANY
and
XIAMEN
AIRLINES
Exhibit B
to Purchase Agreement Number 3323
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
B
Exhibit B
to
Purchase
Agreement No. 3323
Page
1
AIRCRAFT
DELIVERY REQUIREMENTS AND RESPONSIBILITIES
relating
to
BOEING
MODEL 737-85C AIRCRAFT
Both
Boeing and Customer have certain documentation and approval responsibilities at
various times during the construction cycle of Customer’s Aircraft that are
critical to making the delivery of each Aircraft a positive experience for both
parties. This Exhibit B documents those responsibilities and indicates
recommended completion deadlines for the actions to be
accomplished.
|
1.
|
GOVERNMENT
DOCUMENTATION REQUIREMENTS.
|
Certain
actions are required to be taken by Customer in advance of the scheduled
delivery month of each Aircraft with respect to obtaining certain government
issued documentation.
|
1.1
|
Airworthiness and
Registration Documents.
|
Not later
than 6 months prior to delivery of
each Aircraft, Customer will notify Boeing of the registration number to be
painted on the side of the Aircraft. In addition, and not later than 3 months prior to delivery of
each Aircraft, Customer will, by letter to the regulatory authority having
jurisdiction, authorize the temporary use of such registration numbers by Boeing
during the pre-delivery testing of the Aircraft.
Customer
is responsible for furnishing any Temporary or Permanent Registration
Certificates required by any governmental authority having jurisdiction to be
displayed aboard the Aircraft after delivery.
|
1.2
|
Certificate of
Sanitary Construction.
|
1.2.1 U.S. Registered
Aircraft. Boeing will obtain from the United States Public Health
Service, a United States Certificate of Sanitary Construction to be displayed
aboard each Aircraft after delivery to Customer.
1.2.2 Non-U.S. Registered
Aircraft. If Customer requires a United States Certificate of Sanitary
Construction at the time of delivery of the Aircraft. Customer will give written
notice thereof to Boeing at least 3 months prior to delivery.
Boeing will then use its reasonable best efforts to obtain the
Certificate from the United States Public Health Service and present it to
Customer at the time of Aircraft delivery.
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
B-1
Exhibit B
to
Purchase
Agreement No. 3323
Page
2
|
1.3
|
Customs
Documentation.
|
1.3.1
Import Documentation.
If the Aircraft is intended to be exported from the United States, Customer must
notify Boeing not later than 3
months prior to delivery of each
Aircraft of any documentation required by the customs authorities or by any
other agency of the country of import.
1.3.2 General Declaration -
U.S. If the Aircraft is intended to be exported from the United States,
Boeing will prepare Customs Form 7507, General Declaration, for execution by
U.S. Customs immediately prior to the ferry flight of the Aircraft. For this
purpose, Customer will furnish to Boeing not later than 20 days prior to delivery all information required
by U.S. Customs and Border Protection, including without limitation (i) a
complete crew and passenger list identifying the names, birth dates, passport
numbers and passport expiration dates of all crew and passengers and (ii) a
complete ferry flight itinerary, including point of exit from the United States
for the Aircraft.
If
Customer intends, during the ferry flight of an Aircraft, to land at a U.S.
airport after clearing Customs at delivery, Customer must notify Boeing not
later than 20 days prior to delivery of such intention. If
Boeing receives such notification, Boeing will provide to Customer the documents
constituting a Customs permit to proceed, allowing such Aircraft to depart after
any such landing. Sufficient copies of completed Form 7507, along with passenger
manifest, will be furnished to Customer to cover U.S. stops scheduled for the
ferry flight.
1.3.3 Export Declaration -
U.S. If the Aircraft is intended to be exported from the United States,
Boeing will prepare Form 7525V and, immediately
prior to the ferry flight, will submit such Form to U.S. Customs in
Seattle in order to obtain clearance for the departure of the Aircraft,
including any cargo, from the United States. U.S. Customs will deliver the
Export Declaration to the U.S. Department of Commerce after export.
|
2.
|
INSURANCE
CERTIFICATES.
|
Unless
provided earlier, Customer will provide to Boeing not later than 30 days prior to delivery of the first Aircraft, a
copy of the requisite annual insurance certificate in accordance with the
requirements of Article 8 of the AGTA.
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
B-2
Exhibit B
to
Purchase
Agreement No. 3323
Page
3
|
3.
|
NOTICE OF FLYAWAY
CONFIGURATION.
|
Not later
than 20 days prior to delivery of the Aircraft, Customer will provide
to Boeing a configuration letter stating the requested “flyaway configuration”
of the Aircraft for its ferry flight. This configuration letter should
include:
(i)
the
name of the company which is to furnish fuel for the ferry flight and any
scheduled post-delivery flight training, the method of payment for such fuel,
and fuel load for the ferry flight;
(ii) the
cargo to be loaded and where it is to be stowed on board the Aircraft, the
address where cargo is to be shipped after flyaway and notification of any
hazardous materials requiring special handling;
(iii) any
BFE equipment to be removed prior to flyaway and returned to Boeing BFE stores
for installation on Customer’s subsequent Aircraft;
(iv) a
complete list of names and citizenship of each crew member and non-revenue
passenger who will be aboard the ferry flight; and
(v) a
complete ferry flight itinerary.
|
4.
|
DELIVERY ACTIONS BY
BOEING.
|
4.1 Schedule of
Inspections. All FAA, Boeing, Customer and, if required, U.S. Customs
Bureau inspections will be scheduled by Boeing for completion prior to delivery
or departure of the Aircraft. Customer will be informed of such
schedules.
4.2 Schedule of Demonstration
Flights. All FAA and Customer demonstration flights will be scheduled by
Boeing for completion prior to delivery of the Aircraft.
4.3 Schedule for Customer’s
Flight Crew. Boeing will inform Customer of the date that a flight crew
is required for acceptance routines associated with delivery of the
Aircraft.
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
B-3
Exhibit B
to
Purchase
Agreement No. 3323
Page
4
4.4
Fuel Provided by Boeing. Boeing will provide to
Customer, without charge, the amount of fuel shown in U.S. gallons in the table
below for the model of Aircraft being delivered and full capacity of engine oil
at the time of delivery or prior to the ferry flight of the
Aircraft.
|
Aircraft Model
|
Fuel Provided
|
|
|
737
|
1,000
|
4.5 Flight Crew and Passenger
Consumables. Boeing will provide reasonable quantities of food, coal
hangers, towels, toilet tissue, drinking cups and soap for the first segment of
the ferry flight for the Aircraft.
4.6 Delivery Papers, Documents
and Data. Boeing will have available at the time of delivery of the
Aircraft certain delivery papers, documents and data for execution and delivery.
If title for the Aircraft will be transferred to Customer through a Boeing sales
subsidiary and if the Aircraft will be registered with the FAA, Boeing will
pre-position in Oklahoma City, Oklahoma, for filing with the FAA at the time of
delivery of the Aircraft an executed original Form 8050-2. Aircraft Xxxx of
Sale, indicating transfer of title to the Aircraft from Boeing’s sales
subsidiary to Customer.
4.7 Delegation of
Authority. If specifically requested in advance by Customer, Boeing will
present a certified copy of a Resolution of Boeing’s Board of Directors,
designating and authorizing certain persons to act on its behalf in connection
with delivery of the Aircraft.
|
5.
|
DELIVERY ACTIONS BY
CUSTOMER.
|
5.1
Aircraft Radio
Station License. At delivery Customer will provide its Aircraft Radio
Station License to be placed on board the Aircraft following
delivery.
5.2.
Aircraft Flight
Log. At delivery Customer will provide the Aircraft Flight Log for the
Aircraft.
5.3
Delegation of
Authority. Customer will present to Boeing at delivery of the Aircraft an
original or certified copy of Customer’s Delegation of Authority designating and
authorizing certain persons to act on its behalf in connection with delivery of
the specified Aircraft.
5.4 TSA
Waiver Approval. Should the Aircraft be exported, a TSA waiver approval is
required for the ferry flight, unless Customer has a TSA approved program.
Customer is responsible for submittal of TSA waiver to the TSA and following up
with the TSA for the approval. A copy of the TSA waiver approval is to be
provided by Customer to Boeing upon arrival of Customer’s acceptance team at the
Boeing delivery center.
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
B-4
ESCALATION
ADJUSTMENT
AIRFRAME AND OPTIONAL
FEATURES
between
THE
BOEING COMPANY
and
XIAMEN
AIRLINES
Supplemental
Exhibit AE1 to Purchase Agreement Number 3323
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
AE1
|
1.
|
Formula.
|
Airframe
and Optional Features price adjustments (Airframe Price Adjustment) are used to
allow prices to be stated in current year dollars at the signing of this
Purchase Agreement and to adjust the amount to be paid by Customer at delivery
for the effects of economic fluctuation. The Airframe Price Adjustment will be
determined at the time of Aircraft delivery in accordance with the following
formula:
*
* *
|
P.A.
No. 3323
|
[***The
following page omitted]
|
|
|
BOEING
PROPRIETARY
|
AE1 -
1
|
2.
|
Values to be Utilized
in the Event of
Unavailability.
|
2.1 If
the Bureau of Labor Statistics substantially revises the methodology used for
the determination of the values to be used to determine the ECI and CPI values
(in contrast to benchmark adjustments or other corrections of previously
released values), or for any reason has not released values needed to determine
the applicable Airframe Price Adjustment, the parties will, prior to the
delivery of any such Aircraft, select a substitute from other Bureau of Labor
Statistics data or similar data reported by non-governmental organizations. Such
substitute will result in the same adjustment, insofar as possible, as would
have been calculated utilizing the original values adjusted for fluctuation
during the applicable time period. However, if within 24 months after delivery
of the Aircraft, the Bureau of Labor Statistics should resume releasing values
for the months needed to determine the Airframe Price Adjustment, such values
will be used to determine any increase or decrease in the Airframe Price
Adjustment for the Aircraft from that determined at the time of delivery of the
Aircraft.
2.2 Notwithstanding
Article 2.1 above, if prior to the scheduled delivery month of an Aircraft the
Bureau of Labor Statistics changes the base year for determination of the ECI
and CPI values as defined above, such re-based values will be incorporated in
the Airframe Price Adjustment calculation.
2.3 In
the event escalation provisions are made non-enforceable or otherwise rendered
void by any agency of the United States Government, the parties agree, to the
extent they may lawfully do so, to equitably adjust the Aircraft Price of any
affected Aircraft to reflect an allowance for increases or decreases consistent
with the applicable provisions of paragraph 1 of this Supplemental Exhibit AE1
in labor compensation and material costs occurring since August of the year
prior to the price base year shown in the Purchase Agreement.
2.4 If
within 12 months of Aircraft delivery, the published index values are revised
due to an acknowledged error by the Bureau of Labor Statistics, the Airframe
Price Adjustment will be re-calculated using the revised index values (this does
not include those values noted as preliminary by the Bureau of Labor
Statistics). A credit memorandum or supplemental invoice will be issued for the
Airframe Price Adjustment difference. Interest charges will not apply for the
period of original invoice to issuance of credit memorandum or supplemental
invoice.
|
Note:
|
i.
The values released by the Bureau of Labor Statistics and available
to
Boeing 30 days prior to the first day of the scheduled delivery month of
an Aircraft will be used to determine the ECI and CPI values for the
applicable months (including those noted as preliminary by the Bureau of
Labor Statistics) to calculate the Airframe Price Adjustment for the
Aircraft invoice at the time of delivery. The values will be considered
final and no Airframe Price Adjustments will be made after Aircraft
delivery for any subsequent changes in published Index values, subject
always to paragraph 2.4 above.
|
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
AE1 -
3
ii. The
maximum number of digits to the right of the decimal after rounding
utilized in any part of the Airframe Price Adjustment equation will be 4, where
rounding of the fourth digit will be increased to the next highest digit when
the 5th digit is equal to 5 or greater.
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
AE1 -
4
BUYER
FURNISHED EQUIPMENT VARIABLES
between
THE
BOEING COMPANY
and
XIAMEN
AIRLINES
Supplemental
Exhibit BFE1 to Purchase Agreement Number 3323
|
P.A. No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
BFE1
BUYER
FURNISHED EQUIPMENT VARIABLES
relating
to
BOEING
MODEL AIRCRAFT
This
Supplemental Exhibit BFEl contains vendor selection dates, on-dock dates and
other variables applicable to the Aircraft.
|
1.
|
Supplier
Selection.
|
Customer
will:
1.1
Select
and notify Boeing of the suppliers and part numbers of the following BFE items
by the following dates:
|
Galley
System
|
March 4, 2013
|
|
|
|
|
Galley
Inserts
|
March
4, 2013
|
|
Seats
(passenger)
|
March 4, 2013
|
|
Overhead
& Audio System
|
March 4, 2013
|
|
In-Seat
Video System
|
March 4, 2013
|
|
Miscellaneous
Emergency Equipment
|
March 4, 2013
|
|
Cargo
Handling Systems
|
March 4, 2013
|
**-If configuration for this
program includes any or all below, customer will need to provide Supplier
Selections two (2) months earlier than stated above.
- Developmental
seats
- In
seat video
- G4C/G4D
galleys
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
BFE1-1
|
2.
|
On-dock
Dates
|
On or
before April 2013, Boeing will provide to Customer a BFE Requirements
On-Dock/Inventory Document (BFE Document) or an electronically transmitted BFE
Report which may be periodically revised, setting forth the items, quantities,
on-dock dates and shipping instructions relating to the in-sequence installation
of BFE. For planning purposes, a preliminary BFE on-dock schedule is set forth
below:
|
Item
|
Preliminary
On-Dock Dates
|
|||
|
|
[Month of Delivery]
|
|||
|
January 2014
Aircraft
|
April
2014
Aircraft
|
|||
|
Seats
|
11/18/2013
|
2/21/2014
|
||
|
Galleys/Furnishings
|
11/4/2013
|
2/14/2014
|
||
|
Antenna
and Mounting Equipment
|
9/20/2013
|
12/20/2013
|
||
|
Avionics
|
11/4/2013
|
2/14/2014
|
||
|
Cabin
Systems Equipment
|
11/4/2013
|
2/14/2014
|
||
|
Miscellaneous
Emergeny Equipment
|
11/4/2013
|
2/14/2014
|
||
|
Textiles/Raw
Material
|
7/22/2013
|
10/23/2013
|
||
|
Cargo
Systems
|
1/28/2013
|
1/28/2014
|
||
|
Provision
Kits
|
6/24/2013
|
9/27/2013
|
||
|
Radomes
|
9/13/2013
|
12/13/2013
|
||
|
|
||||
|
May
2014
Aircraft
|
June
2014
Aircraft
|
|||
|
Seats
|
3/21/2014
|
4/22/2014
|
||
|
Galleys/Furnishings
|
3/14/2014
|
4/15/2014
|
||
|
Antenna
and Mounting Equipment
|
1/21/2014
|
2/21/2014
|
||
|
Avionics
|
3/14/2014
|
4/15/2014
|
||
|
Cabin
Systems Equipment
|
3/14/2014
|
4/15/2014
|
||
|
Miscellaneous
Emergeny Equipment
|
3/14/2014
|
4/15/2014
|
||
|
Textiles/Raw
Material
|
11/23/2013
|
1/9/2014
|
||
|
Cargo
Systems
|
2/28/2014
|
4/2/2014
|
||
|
Provision
Kits
|
10/28/2013
|
12/2/2013
|
||
|
Radomes
|
1/14/2014
|
3/14/2014
|
||
|
P.A. No.
3323
|
|
|
|
BOEING
PROPRIETARY
|
BFE1-2
|
Item
|
Preliminary
On-Dock Dates
|
|||
|
|
[Month
of Delivery]
|
|||
|
July
2014 (2)
Aircraft
|
August
2014
Aircraft
|
|||
|
Seats
|
5/21/2014
|
6/20/2014
|
||
|
Galleys/Furnishings
|
5/14/2014
|
6/13/2014
|
||
|
Antenna
and Mounting Equipment
|
3/21/2014
|
4/21/2014
|
||
|
Avionics
|
5/14/2014
|
6/13/2014
|
||
|
Cabin
Systems Equipment
|
5/14/2014
|
6/13/2014
|
||
|
Miscellaneous
Emergeny Equipment
|
5/14/2014
|
6/13/2014
|
||
|
Textiles/Raw
Material
|
2/7/2014
|
3/10/2014
|
||
|
Cargo
Systems
|
5/1/014
|
5/30/2014
|
||
|
Provision
Kits
|
1/2/2014
|
1/30/2014
|
||
|
Radomes
|
4/14/2014
|
5/13/2014
|
||
|
|
||||
|
September 2014
Aircraft
|
October 2014
Aircraft
|
|||
|
Seats
|
7/23/2014
|
8/21/2014
|
||
|
Galleys/Furnishings
|
7/16/2014
|
8/14/2014
|
||
|
Antenna
and Mounting Equipment
|
5/23/2014
|
6/20/2014
|
||
|
Avionics
|
7/16/2014
|
8/14/2014
|
||
|
Cabin
Systems Equipment
|
7/16/2014
|
8/14/2014
|
||
|
Miscellaneous
Emergeny Equipment
|
7/16/2014
|
8/14/2014
|
||
|
Textiles/Raw
Material
|
4/9/2014
|
5/8/2014
|
||
|
Cargo
Systems
|
7/2/2014
|
7/31/2014
|
||
|
Provision
Kits
|
3/3/2014
|
3/31/2014
|
||
|
Radomes
|
6/16/2014
|
7/14/2014
|
||
|
P.A. No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
BFE1-3
|
Item
|
Preliminary
On-Dock Dates
|
|||
|
|
[Month
of Delivery]
|
|||
|
January 2015
Aircraft
|
March 2015
Aircraft
|
|||
|
Seats
|
11/18/2014
|
1/22/2015
|
||
|
Galleys/Furnishings
|
11/11/2014
|
1/15/2015
|
||
|
Antenna
and Mounting Equipment
|
9/18/2014
|
11/23/2014
|
||
|
Avionics
|
11/11/2014
|
1/15/2015
|
||
|
Cabin
Systems Equipment
|
11/11/2014
|
1/15/2015
|
||
|
Miscellaneous
Emergeny Equipment
|
11/11/2014
|
1/15/2015
|
||
|
Textiles/Raw
Material
|
8/4/2014
|
9/30/2014
|
||
|
Cargo
Systems
|
10/28/2014
|
1/2/2015
|
||
|
Provision
Kits
|
6/27/2014
|
9/2/2014
|
||
|
Radomes
|
9/11/2014
|
12/15/2014
|
||
|
|
||||
|
May 2015
Aircraft
|
June 2015
Aircraft
|
|||
|
Seats
|
3/20/2015
|
4/22/2015
|
||
|
Galleys/Furnishings
|
3/13/2015
|
4/15/2015
|
||
|
Antenna
and Mounting Equipment
|
1/20/2015
|
2/23/2015
|
||
|
Avionics
|
3/13/2015
|
4/15/2015
|
||
|
Cabin
Systems Equipment
|
3/13/2015
|
4/15/2015
|
||
|
Miscellaneous
Emergeny Equipment
|
3/13/2015
|
4/15/2015
|
||
|
Textiles/Raw
Material
|
11/21/2014
|
1/9/2015
|
||
|
Cargo
Systems
|
2/27/2015
|
4/1/2015
|
||
|
Provision
Kits
|
10/28/2014
|
12/1/2014
|
||
|
Radomes
|
1/14/2015
|
3/16/2015
|
||
|
P.A. No.
3323
|
|
|
|
BOEING
PROPRIETARY
|
BFE1-4
|
Item
|
Preliminary
On-Dock Dates
|
|||
|
|
[Month
of Delivery]
|
|||
|
July
2015 (2)
Aircraft
|
August
2015 (2)
Aircraft
|
|||
|
Seats
|
5/20/2015
|
6/22/2015
|
||
|
Galleys/Furnishings
|
5/13/2015
|
6/15/2015
|
||
|
Antenna
and Mounting Equipment
|
3/20/2015
|
4/15/2015
|
||
|
Avionics
|
5/13/2015
|
6/15/2015
|
||
|
Cabin
Systems Equipment
|
5/13/2015
|
6/15/2015
|
||
|
Miscellaneous
Emergeny Equipment
|
5/13/2015
|
6/15/2015
|
||
|
Textiles/Raw
Material
|
2/6/2015
|
4/24/2015
|
||
|
Cargo
Systems
|
4/29/2015
|
6/1/2015
|
||
|
Provision
Kits
|
12/23/2014
|
2/2/2015
|
||
|
Radomes
|
4/13/2015
|
5/15/2015
|
||
|
|
||||
|
September 2015
Aircraft
|
October 2015 (2)
Aircraft
|
|||
|
Seats
|
7/23/2015
|
8/21/2015
|
||
|
Galleys/Furnishings
|
7/16/2015
|
8/14/2015
|
||
|
Antenna
and Mounting Equipment
|
5/22/2105
|
6/22/2015
|
||
|
Avionics
|
7/16/2015
|
8/14/2015
|
||
|
Cabin
Systems Equipment
|
7/16/2015
|
8/14/2015
|
||
|
Miscellaneous
Emergeny Equipment
|
7/16/2015
|
8/14/2015
|
||
|
Textiles/Raw
Material
|
4/9/2015
|
5/8/2015
|
||
|
Cargo
Systems
|
7/2/2015
|
7/31/2015
|
||
|
Provision
Kits
|
3/2/2015
|
3/31/2015
|
||
|
Radomes
|
6/16/2015
|
8/21/2015
|
||
|
3.
|
Additional
Delivery Requirements
|
Customer
will insure that Customer’s BFE suppliers provide sufficient information to
enable Boeing, when acting as Importer of Record for Customer’s BFE, to comply
with all applicable provisions of the U.S. Customs Service.
|
P.A. No.
3323
|
|
|
|
BOEING
PROPRIETARY
|
BFE1-5
CUSTOMER
SUPPORT VARIABLES
between
THE
BOEING COMPANY
and
XIAMEN
AIRLINES
Supplemental
Exhibit CS1 to Purchase Agreement Number 3323
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
CS1
CUSTOMER
SUPPORT VARIABLES
relating
to
BOEING
MODEL 737-85C AIRCRAFT
Customer
currently operates an aircraft of the same model as the Aircraft. Upon
Customer’s request, Boeing will develop and schedule a customized Customer
Support Program to be furnished in support of the Aircraft. The customized
program will be based upon and equivalent to the entitlements summarized
below.
|
1.
|
Maintenance
Training.
|
|
|
1.1
|
Maintenance
Training Minor Model Differences Course, if required, covering
operational, structural or systems differences between Customer’s
newly-purchased Aircraft and an aircraft of the same model currently
operated by Customer: 1 class of 15
students:
|
|
|
1.2
|
Training
materials, if applicable, will be provided to each student. In addition,
one set of training materials as used in Boeing’s training program,
including visual aids, text and graphics will be provided for use in
Customer’s own training program.
|
|
2.
|
Flight
Training.
|
Boeing
will provide, if required, one classroom course to acquaint up to 15 students
with operational, systems and performance differences between Customer’s
newly-purchased Aircraft and an aircraft of the same model currently operated by
Customer.
Any
training materials used in Flight Training, if required, will be provided for
use in Customer’s own training program.
|
3.
|
Planning
Assistance.
|
|
3.1
|
Maintenance and Ground
Operations.
|
Upon
request. Boeing will provide planning assistance regarding Minor Model
Differences requirements for facilities, tools and equipment.
|
3.2
|
Spares.
|
Boeing
will revise, as applicable, the customized Recommended Spares Parts List (RSPL)
and Illustrated Parts Catalog (IPC).
|
4.
|
Technical Data and
Documents.
|
Boeing
will revise, as applicable, technical data and documents provided with
previously delivered aircraft.
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
CS1-1
ENGINE
ESCALATION.
ENGINE
WARRANTY AND PATENT INDEMNITY
between
THE
BOEING COMPANY
and
XIAMEN
AIRLINES
Supplemental
Xxxxxxx XX0 to Purchase Agreement Number 3323
|
P.A. No.
3323
|
|
|
|
BOEING
PROPRIETARY
|
EE1
ENGINE
ESCALATION,
ENGINE
WARRANTY AND PATENT INDEMNITY
relating
to
BOEING
MODEL 737-85C AIRCRAFT
1. ENGINE ESCALATION. No
separate engine escalation methodology is defined for the 737-600, -700, -800 or
-900 Aircraft. Pursuant to the AGTA, the engine prices for these Aircraft are
included in and will be escalated in the same manner as the
Airframe.
2. ENGINE WARRANTY AND PRODUCT
SUPPORT PLAN. Boeing has obtained from CFM International, Inc. (or CFM
International. S.A., as the case may be) (CFM) the right to extend to Customer
the provisions of CFM’s warranty as set forth below (herein referred to as the
“Warranty”): subject, however, to Customer’s acceptance of the conditions set
forth herein. Accordingly, Boeing hereby extends to Customer and Customer hereby
accepts the provisions of CFM’s Warranty as hereinafter set forth, and such
Warranty shall apply to all CFM56-7 type Engines (including all Modules and
Parts thereof) installed in the Aircraft at the time of delivery or purchased
from Boeing by Customer for support of the Aircraft except that, if Customer and
CFM have executed, or hereafter execute, a General Terms Agreement, then the
terms of that Agreement shall be substituted for and supersede the provisions of
Paragraphs 2.1 through 2.10 below and Paragraphs 2.1 through 2.10 below shall be
of no force or effect and neither Boeing nor CFM shall have any obligation
arising therefrom. In consideration for Boeing’s extension of the CFM Warranty
to Customer. Customer hereby releases and discharges Boeing from any and all
claims, obligations and liabilities whatsoever arising out of the purchase or
use of such CFM56-7 type Engines and Customer hereby waives, releases and
renounces all its rights in all such claims, obligations and liabilities. In
addition, Customer hereby releases and discharges CFM from any and all claims,
obligations and liabilities whatsoever arising out of the purchase or use of
such CFM56-7 type Engines except as otherwise expressly assumed by CFM in such
CFM Warranty or General Terms Agreement between Customer and CFM and Customer
hereby waives, releases and renounces all its rights in all such claims,
obligations and liabilities.
2.1. Title. CFM warrants
that at the date of delivery, CFM has legal title to and good and lawful right
to sell its CFM56-7 type Engine and Products and furthermore warrants that such
title is free and clear of all claims, liens and encumbrances of any nature
whatsoever.
|
P.A. No.
3323
|
|
|
|
BOEING
PROPRIETARY
|
EE1-1
|
2.2.
|
Patents.
|
2.2.1 CFM
shall handle all claims and defend any suit or proceeding brought against
Customer insofar as based on a claim that any product or part furnished under
this Agreement constitutes an infringement of any patent of the United States,
and shall pay all damages and costs awarded therein against Customer. This
paragraph shall not apply to any product or any part manufactured to Customer’s
design or to the aircraft manufacturer’s design. As to such product or part, CFM
assumes no liability for patent infringement.
2.2.2 CFM’s
liability hereunder is conditioned upon Customer promptly notifying CFM in
writing and giving CFM authority, information and assistance (at CFM’s expense)
for the defense of any suit. In case said equipment or part is held in such suit
to constitute infringement and the use of said equipment or part is enjoined,
CFM shall expeditiously, at its own expense and at its option, either (i)
procure for Customer the rights to continue using said product or part; (ii)
replace the same with a satisfactory and noninfringing product or part: or (iii)
modify the same so it becomes satisfactory and noninfringing. The foregoing
shall constitute the sole remedy of Customer and the sole liability of CFM for
patent infringement.
2.2.3 The
above provisions also apply to products which are the same as those covered by
this Agreement and are delivered to Customer as part of the installed equipment
on CFM56-7 powered Aircraft.
2.3. Initial Warranty. CFM
warrants that CFM56-7 Engine products will conform to CFM’s applicable
specifications and will be free from defects in material and workmanship prior
to Customer’s initial use of such products.
2.4. Warranty
Pass-On.
2.4.1
If requested by Customer and agreed to by CFM in writing, CFM will extend
warranty support for Engines sold by Customer to commercial airline operators,
or to other aircraft operators. Such warranty support will be limited to the New
Engine Warranty, New Parts Warranty, Ultimate Life Warranty and Campaign Change
Warranty and will require such operator(s) to agree in writing to be bound by
and comply with all the terms and conditions, including the limitations,
applicable to such warranties.
|
P.A. No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
EE1-2
2.4.2 Any
warranties set forth herein shall not be transferable to a third party, merging
company or an acquiring entity of Customer.
2.4.3 In
the event Customer is merged with, or acquired by, another aircraft operator
which has a general terms agreement with CFM, the Warranties as set forth herein
shall apply to the Engines, Modules, and Parts.
|
2.5.
|
New Engine
Warranty.
|
***
2.6. New Parts Warranty.
In addition to the warranty granted for new Engines and new Modules, CFM
warrants Engine and Module Parts as follows:
***
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
EE1-3
2.6.2. CFM
will grant a pro rata Parts Credit Allowance for Scrapped Parts decreasing from
100% at 1000 Flight Hours Part Time to zero percent at the applicable hours
designated in Table 1.
2.7. Ultimate Life
Warranty.
2.7.1. CFM
warrants Ultimate Life limits on the following Parts:
|
(i)
|
Fan
and Compressor Disks/Drums
|
|
(ii)
|
Fan
and Compressor Shafts
|
|
(iii)
|
Compressor
Discharge Pressure Seal (CDP)
|
|
(iv)
|
Turbine
Disks
|
|
(v)
|
HPT
Forward and Stub Shaft
|
|
(vi)
|
LPT
Driving Cone
|
|
(vii)
|
LPT
Shaft and Stub Shaft
|
2.7.2. ***(
2.8. Campaign Change
Warranty.
2.8.1. A
campaign change will be declared by CFM when a new Part design introduction.
Part modification. Part Inspection, or premature replacement of an Engine or
Module is required by a mandatory time compliance CFM Service Bulletin or FAA
Airworthiness Directive. Campaign change may also be declared for CFM Service
Bulletins requesting new Part introduction no later than the next Engine or
Module shop visit. CFM will grant following Parts Credit
Allowances:
Engines and
Modules
***
|
X.X.Xx. 3323
|
|
|
|
BOEING
PROPRIETARY
|
EE1-4
2.8.2. Labor
Allowance - CFM will grant 100% Labor Allowance for disassembly, reassembly,
modification, testing, or Inspection of CFM supplied Engines, Modules, or Parts
therefor when such action is required to comply with a mandatory time compliance
CFM Service Bulletin or FAA Airworthiness Directive. A Labor Allowance will be
granted by CFM for other CFM issued Service Bulletins if so specified in such
Service Bulletins.
2.8.3. Life
Controlled Rotating Parts retired by Ultimate Life limits including FAA and/or
DGAC Airworthiness Directive, are excluded from Campaign Change
Warranty.
2.9. Limitations. THE
PROVISIONS SET FORTH HEREIN ARE EXCLUSIVE AND ARE IN LIEU OF ALL OTHER
WARRANTIES WHETHER WRITTEN. ORAL OR IMPLIED. THERE ARE NO IMPLIED WARRANTIES OF
FITNESS OR MERCHANTABILITY. SAID PROVISIONS SET FORTH THE MAXIMUM LIABILITY OF
CFM WITH RESPECT TO CLAIMS OF ANY KIND, INCLUDING NEGLIGENCE, ARISING OUT OF
MANUFACTURE, SALE, POSSESSION. USE OR HANDLING OF THE PRODUCTS OR PARTS THEREOF
OR THEREFOR, AND IN NO EVENT SHALL CFM’S LIABILITY TO CUSTOMER EXCEED THE
PURCHASE PRICE OF THE PRODUCT GIVING RISE TO CUSTOMER’S CLAIM OR INCLUDE
INCIDENTAL OR CONSEQUENTIAL DAMAGES.
2.10. Indemnity and
Contribution.
2.10.1. IN
THE EVENT CUSTOMER ASSERTS A CLAIM AGAINST A THIRD PARTY FOR DAMAGES OF THE TYPE
LIMITED OR EXCLUDED IN LIMITATIONS, PARAGRAPH 2.9. ABOVE, CUSTOMER SHALL
INDEMNIFY AND HOLD CFM HARMLESS FROM AND AGAINST ANY CLAIM BY OR LIABILITY TO
SUCH THIRD PARTY FOR CONTRIBUTION OR INDEMNITY, INCLUDING COSTS AND EXPENSES
(INCLUDING ATTORNEYS’ FEES) INCIDENT THERETO OR INCIDENT TO ESTABLISHING
SUCCESSFULLY THE RIGHT TO INDEMNIFICATION UNDER THIS PROVISION. THIS INDEMNITY
SHALL APPLY WHETHER OR NOT SUCH DAMAGES WERE OCCASIONED IN WHOLE OR IN PART BY
THE FAULT OR NEGLIGENCE OF CFM. WHETHER ACTIVE, PASSIVE OR IMPUTED.
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
EE1-5
2.10.2. CUSTOMER
SHALL INDEMNIFY AND HOLD CFM HARMLESS FROM ANY DAMAGE, LOSS, CLAIM, AND
LIABILITY OF ANY KIND (INCLUDING EXPENSES OF LITIGATION AND ATTORNEYS’ FEES) FOR
PHYSICAL INJURY TO OR DEATH OF ANY PERSON. OR FOR PROPERTY DAMAGE OF ANY TYPE.
ARISING OUT OF THE ALLEGED DEFECTIVE NATURE OF ANY PRODUCT OR SERVICE FURNISHED
UNDER THIS AGREEMENT, TO THE EXTENT THAT THE PAYMENTS MADE OR REQUIRED TO BE
MADE BY CFM EXCEED ITS ALLOCATED SHARE OF THE TOTAL FAULT OR LEGAL
RESPONSIBILITY OF ALL PERSONS ALLEGED TO HAVE CAUSED SUCH DAMAGE, LOSS, CLAIM,
OR LIABILITY BECAUSE OF A LIMITATION OF LIABILITY ASSERTED BY CUSTOMER OR
BECAUSE CUSTOMER DID NOT APPEAR IN AN ACTION BROUGHT AGAINST CFM. CUSTOMER’S
OBLIGATION TO INDEMNIFY CFM HEREUNDER SHALL BE APPLICABLE AT SUCH TIME AS CFM IS
REQUIRED TO MAKE PAYMENT PURSUANT TO A FINAL JUDGEMENT IN AN ACTION OR
PROCEEDING IN WHICH CFM WAS A PARTY, PERSONALLY APPEARED. AND HAD THE
OPPORTUNITY TO DEFEND ITSELF. THIS INDEMNITY SHALL APPLY WHETHER OR NOT
CUSTOMER’S LIABILITY IS OTHERWISE LIMITED.
|
P.A. No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
EE1-6
TABLE 1
737X
XXX00 XXXXXXXX PARTS LIST
FLIGHT HOURS
|
Fan
Rotor/Booster
Blades
Disk,
Drum
Spinner
|
* *
*
|
|
|
Fan
Frame
Casing
Hub
& Struts
Fairings
Splitter
(Mid Ring)
Vanes
Engine
Mount
|
* *
*
|
|
|
No. 1 & No. 2
Bearing Support
Bearings
Shaft
Support
(Case)
|
* *
*
|
|
|
Inlet Gearbox &
No. 3 Bearing
Bearings
Gear
Case
|
* *
*
|
|
|
Compressor
Rotor
Blades
Disk
& Drums
Shaft
|
* *
*
|
|
|
Compressor
Stator
Casing
Shrouds
Vanes
Variable
Stator Actuating Rings
|
* *
*
|
|
|
Combustor Diffuser
Nozzle (CDN)
Casings
Combustor
Liners
Fuel
Atomizer
HPT
Nozzle
HPT
Nozzle Support
HPT
Shroud
|
* *
*
|
|
P.A. No.
3323
|
|
|
|
BOEING
PROPRIETARY
|
EE1-7
TABLE 1
737X
XXX00 XXXXXXXX PARTS LIST
(continued)
|
HPT
Rotor
Blades
Disks
Shafts
Retaining
Ring
|
* *
*
|
|
|
LP
Turbine
Casing
Vane
Assemblies
Interstage
Seals
Shrouds
Disks
Shaft
Bearings
Blades
|
* *
*
|
|
|
Turbine
Frame
Casing
& Struts
Hub
Sump
|
* *
*
|
|
|
Accessory &
Transfer Gearboxes
Case
Shafts
Gears
Bearings
|
* *
*
|
|
|
Air-Oil
Seals
|
* *
*
|
|
|
Controls &
Accessories
Engine
|
* *
*
|
|
|
Condition Monitoring
Equipment
|
* *
*
|
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
EE1-8
SERVICE
LIFE POLICY COMPONENTS
between
THE
BOEING COMPANY
and
XIAMEN
AIRLINES
Supplemental
Exhibit SLP1 to Purchase Agreement Number 3323
|
P.A.
No. 3323
|
|
10/25/07
|
|
BOEING
PROPRIETARY
|
SLP1
SERVICE
LIFE POLICY COMPONENTS
relating
to
BOEING
MODEL 737 AIRCRAFT
This is
the listing of SLP Components for the Aircraft which relate to Part 3, Boeing Service Life
Policy of Exhibit C. Product Assurance
Document to the AGTA and is a part of Purchase Agreement No.
3323.
|
1.
|
Wing.
|
|
(a)
|
Upper
and lower wing skins and stiffeners between the forward and rear wing
spars.
|
|
(b)
|
Wing
spar webs, chords and stiffeners.
|
|
(c)
|
Inspar
wing ribs.
|
|
(d)
|
Inspar
splice plates and fittings.
|
|
(e)
|
Main
landing gear support structure.
|
|
(f)
|
Wing
center section lower beams, spanwise beams and floor beams, but
not the seat tracks attached to floor
beams.
|
|
(g)
|
Wing-to-body
structural attachments.
|
|
(h)
|
Engine
strut support fittings attached directly to wing primary
structure.
|
|
(i)
|
Support
structure in the wing for spoilers and spoiler actuators; for aileron
hinges and reaction links; and for leading edge devices and trailing
edge flaps.
|
|
(j)
|
Trailing
edge flap tracks and carriages.
|
|
(k)
|
Aileron
leading edge device and trailing edge flap internal, fixed attachment and
actuator support structure.
|
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
SLP1-1
|
2.
|
Body.
|
|
(a)
|
External
surface skins and doublers, longitudinal stiffeners, longerons
and circumferential rings and frames between the forward pressure
bulkhead and the vertical stabilizer rear spar bulkhead and structural
support and enclosure for the APU but excluding all system
components and related installation and connecting devices, insulation,
lining, and decorative panels and related installation and connecting
devices.
|
|
(b)
|
Window
and windshield structure but excluding the windows and windshields.
|
|
(c)
|
Fixed
attachment structure of the passenger doors, cargo doors and emergency
exits, excluding door mechanisms and movable hinge components.
Xxxxx and frames around the body openings for the passenger
doors, cargo doors and emergency exits, excluding scuff plates
and pressure seals.
|
|
(d)
|
Nose
wheel well structure, including the wheel well walls, pressure
deck,
bulkheads, and gear support
structure.
|
|
(e)
|
Main
gear wheel well structure including pressure deck and landing gear
beam support structure.
|
|
(f)
|
Floor
beams and support posts in the control cab and passenger cabin area, but
excluding seat tracks.
|
|
(g)
|
Forward
and aft pressure bulkheads.
|
|
(h)
|
Keel
structure between the wing front spar bulkhead and the main gear
wheel well aft bulkhead including
splices.
|
|
(i)
|
Wing
front and rear spar support bulkheads, and vertical and horizontal
stabilizer front and rear spar support bulkheads including terminal
fittings but excluding all system components and related installation
and connecting devices, insulation, lining, and decorative
panels and related installation and connecting
devices.
|
|
(j)
|
Support
structure in the body for the stabilizer pivot and stabilizer screw.
|
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
SLP1-2
|
3.
|
Vertical
Stabilizer.
|
|
(a)
|
External
skins between front and rear spars.
|
|
(b)
|
Front,
rear and auxiliary spar chords, webs and stiffeners and attachment
fittings.
|
|
(c)
|
Inspar
ribs.
|
|
(d)
|
Rudder
hinges and supporting ribs, excluding
bearings.
|
|
(e)
|
Support
structure in the vertical stabilizer for rudder hinges, reaction links and
actuators.
|
|
(f)
|
Rudder
internal, fixed attachment and actuator support
structure.
|
|
4.
|
Horizontal
Stabilizer.
|
|
(a)
|
External
skins between front and rear spars.
|
|
(b)
|
Front
and rear spar chords, webs and
stiffeners.
|
|
(c)
|
Inspar
ribs.
|
|
(d)
|
Stabilizer
center section including hinge and screw support
structure.
|
|
(e)
|
Support
structure in the horizontal stabilizer for the elevator hinges, reaction
links and actuators.
|
|
(f)
|
Elevator
internal, fixed attachment and actuator support
structure.
|
|
5.
|
Engine
Strut.
|
|
(a)
|
Strut
external surface skin and doublers and stiffeners.
|
|
|
(b)
|
Internal
strut chords, frames and bulkheads.
|
|
|
(c)
|
Strut
to wing fittings and diagonal brace.
|
|
|
(d)
|
Engine
mount support fittings attached directly to strut structure and including
the engine-mounted support
fittings.
|
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
SLP1-3
|
6.
|
Main
Landing Gear.
|
|
(a)
|
Outer
cylinder.
|
|
(b)
|
Inner
cylinder, including axles.
|
|
(c)
|
Upper
and lower side struts, including spindles, universals and reaction
links.
|
|
(d)
|
Drag
strut.
|
|
(e)
|
Orifice
support tube.
|
|
|
(f)
|
Downlock
links including spindles and universals.
|
|
|
(g)
|
Torsion
links.
|
|
|
(h)
|
Xxxx
crank.
|
|
|
(i)
|
Trunnion
link.
|
|
|
(j)
|
Actuator
beam, support link and beam arm.
|
|
|
7.
|
Nose Landing
Gear.
|
|
(a)
|
Outer
cylinder.
|
|
|
(b)
|
Inner
cylinder, including axles.
|
|
|
(c)
|
Orifice
support tube.
|
|
|
(d)
|
Upper
and lower drag strut, including lock links.
|
|
|
(e)
|
Steering
plates and steering collars.
|
|
|
(f)
|
Torsion
links.
|
|
NOTE:
|
The
Service Life Policy does not cover any bearings, bolts, bushings, clamps,
brackets,
actuating mechanisms or latching mechanisms used in or on the SLP
Components.
|
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
SLP1-4
|
|
The Boeing Company |
| X.X. Xxx 0000 | |
| Xxxxxxx, XX 00000-0000 |
3323-01
Xiamen
Airlines
00
Xxxxxxx Xxxx
Xxxxxx,
000000
Xxxxxx
Xxxxxxxx
People’s
Republic of China
|
Subject:
|
Spare
Parts Initial Provisioning
|
| Reference: |
a)
|
Purchase
Agreement No. 3323 (the Purchase Agreement) between The Boeing Company
(Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C aircraft
(the Aircraft)
|
|
b)
|
Customer Services General Terms Agreement No. 5C (CSGTA) between Boeing and Customer |
This
letter agreement (Letter Agreement) is entered into on the date below and amends
and supplements the CSGTA. All capitalized terms used but not defined in this
Letter Agreement have the same meaning as in the CSGTA, except for “Aircraft”
which will have the meaning as defined in the Purchase Agreement.
In order
to define the process by which Boeing and Customer will (i) identify those Spare
Parts and Standards critical to Customer’s successful introduction of the
Aircraft into service and its continued operation, (ii) place Orders under the
provisions of the CSGTA as supplemented by the provisions of this Letter
Agreement for those Spare Parts and Standards, and (iii) manage the return of
certain of those Spare Parts which Customer does not use, the parties agree as
follows.
1. Definitions.
“Provisioning Data” means the
documentation provided by Boeing to Customer, including but not limited to the
Recommended Spare Parts List (RSPL), identifying all Boeing initial provisioning
requirements for the Aircraft.
“Provisioning Items” means the
Spare Parts and Standards identified by Boeing as initial provisioning
requirements in support of the Aircraft, excluding special tools, ground support
equipment (GSE), engines and engine parts.
“Provisioning Products Guide”
means the Boeing Manual D6-81834 entitled “Spares Provisioning Products
Guide”.
|
P.A.
No. 3323
|
|
|
| Spare_Parts_Initial_Provisioning |
|
|
|
BOEING
PROPRIETARY
|
Xiamen Airlines
3323-01
Page 2
2. Phased
Provisioning.
2.1 Provisioning Products
Guide. Prior to the initial provisioning meeting Boeing will furnish to
Customer a copy of the Provisioning Products Guide.
2.2 Initial Provisioning
Meeting. On or about twelve (12) months prior to delivery of the first
Aircraft the parties will conduct an initial provisioning meeting as applicable,
where the procedures, schedules, and requirements for training will be
established to accomplish phased provisioning of Spare Parts and Standards for
the Aircraft in accordance with the Provisioning Products Guide. If the lead
time from execution of the Purchase Agreement until delivery of the first
Aircraft is less than twelve (12) months, the initial provisioning meeting will
be established as soon as reasonably possible after execution of the Purchase
Agreement.
2.3 Provisioning Data.
During the initial provisioning meeting Customer will provide to Boeing the
operational parameter information described in Chapter 6 of the Provisioning
Products Guide. After review and acceptance by Boeing of such Customer
information, Boeing will prepare the Provisioning Data. Such Provisioning Data
will be furnished to Customer on or about ninety (90) days after Boeing
finalizes the engineering drawings for the Aircraft. The Provisioning Data will
be as complete as possible and will cover Provisioning Items selected by Boeing
for review by Customer for initial provisioning of Spare Parts and Standards for
the Aircraft. Boeing will furnish to Customer revisions to the Provisioning Data
until approximately ninety (90) days following delivery of the last Aircraft or
until the delivery configuration of each of the Aircraft is reflected in the
Provisioning Data, whichever is later.
2.4 Buyer Furnished Equipment
(BFE) Provisioning Data. Unless otherwise advised by Boeing, Customer
will provide or insure its BFE suppliers provide to Boeing the BFE data in scope
and format acceptable to Boeing, in accordance with the schedule established
during the initial provisioning meeting.
3. Purchase from Boeing of
Spare Parts and Standards as Initial Provisioning for the
Aircraft.
3.1 Schedule. In
accordance with schedules established during the
initial provisioning meeting, Customer may place Orders for Provisioning Items
and any GSE, special tools or engine spare parts which Customer determines
it will initially require for maintenance, overhaul and servicing of the
Aircraft and/or engines.
|
P.A.
No. 3323
|
|
|
| Spare_Parts_Initial_Provisioning |
|
|
|
BOEING
PROPRIETARY
|
Xiamen Airlines
3323-01
Page 3
3.2 Prices of Initial
Provisioning Spare Parts.
3.2.1
Boeing Spare
Parts. The Provisioning Data will set forth the prices for those
Provisioning Items other than items listed in Article 3.3, below, that are
Boeing Spare Parts, and such prices will be firm and remain in effect for ninety
(90) days from the date the price is first quoted to Customer in the
Provisioning Data.
3.2.2
Supplier
Spare Parts. Boeing will provide estimated prices in the
Provisioning Data for Provisioning Items other than items listed in Article 3.3,
below, that are Supplier Spare Parts. The price to Customer for any Supplier
Spare Parts that are Provisioning Items or for any items ordered for initial
provisioning of GSE, special tools manufactured by suppliers, or engine spare
parts will be one hundred twelve percent (112%) of the supplier’s list price for
such items.
3.3 OEC Kits. Standards Kits,
Raw Material Kits, Bulk Materials Kits and Service
Bulletin Kits. In accordance with schedules established
during the initial provisioning meeting. Boeing will furnish to Customer
a listing of all components which could be included in the quick engine
change
(QEC) kits, Standards kits, raw material kits, bulk materials kits and
service
bulletin kits which may be purchased by Customer from Boeing. Customer
will select, and provide to Boeing its desired content for the kits.
Boeing
will furnish to Customer as soon as practicable thereafter a statement
setting
forth a firm price for such kits. Customer will place Orders with Boeing
for the
kits in accordance with schedules established during the initial provisioning
meeting.
4. Delivery.
For Spare
Parts and Standards ordered by Customer in accordance with Article 3 of this
Letter Agreement. Boeing will, insofar as reasonably possible, deliver to
Customer such Spare Parts and Standards on dates reasonably calculated to
conform to Customer’s anticipated needs in view of the scheduled deliveries of
the Aircraft. Customer and Boeing will agree upon the date to begin delivery of
the provisioning Spare Parts and Standards ordered in accordance with this
Letter Agreement. Where appropriate, Boeing will arrange for shipment of such
Spare Parts and Standards which are manufactured by suppliers directly to
Customer from the applicable supplier’s facility. The routing and method of
shipment for initial
deliveries and all subsequent deliveries of such Spare Parts and Standards will
be as established at the initial provisioning meeting and thereafter by mutual
agreement.
|
P.A.
No. 3323
|
|
|
| Spare_Parts_Initial_Provisioning |
|
|
|
BOEING
PROPRIETARY
|
Xiamen Airlines
3323-01
Page 4
5. Substitution for Obsolete
Spare Parts.
5.1 Obligation to Substitute
Pre-Delivery. In the event that, prior to delivery of the first Aircraft,
any Spare Part purchased by Customer from Boeing in accordance with this Letter
Agreement as initial provisioning for the Aircraft is rendered obsolete or
unusable due to the redesign of the Aircraft or of any accessory, equipment or
part thereof (other than a redesign at Customer’s request) Boeing will deliver
to Customer at no charge new and usable Spare Parts in substitution for such
obsolete or unusable Spare Parts and, upon such delivery. Customer will return
the obsolete or unusable Spare Parts to Boeing.
5.2 Delivery of Obsolete Spare
Parts and Substitutes. Obsolete or unusable Spare Parts returned by
Customer pursuant to this Article 5 will be delivered to Boeing F.O.B. at its
Seattle Distribution Center or such other destination as Boeing may reasonably
designate. Spare Parts substituted for such returned obsolete or unusable Spare
Parts will be delivered to Customer in accordance with the CSGTA. Boeing will
pay the freight charges for the shipment from Customer to Boeing of any such
obsolete or unusable Spare Part and for the shipment from Boeing to Customer of
any such substitute Spare Part.
6. Repurchase of Provisioning
Items.
6.1 Obligation to
Repurchase. During a period commencing one (1) year after delivery of the
first Aircraft, and ending five (5) years after such delivery, Boeing will, upon
receipt of Customer’s written request and subject to the exceptions in Article
6.2, repurchase unused and undamaged Provisioning Items which were peculiar to
the Aircraft as compared to the delivery configuration of Model 737-85C aircraft
previously purchased by Customer from Boeing and (i) were recommended by Boeing
in the Provisioning Data as initial provisioning for the Aircraft, (ii) were
purchased by Customer from Boeing, and (iii) are surplus to Customer’s
needs.
6.2 Exceptions. Boeing
will not be obligated under Article 6.1 to repurchase any of the following: (i)
quantities of Provisioning Items in excess of those quantities recommended by
Boeing in the Provisioning Data for the Aircraft, (ii) QEC kits, bulk material
kits, raw material kits, service bulletin kits. Standards kits and components
thereof (except those components listed separately in the Provisioning Data),
(iii) Provisioning Items for which an Order was received
by Boeing more than five (5) months after delivery of the last Aircraft /added
to the Purchase Agreement by the Supplemental Agreement/, (iv) Provisioning
Items which have become obsolete or have been replaced by other Provisioning
Items as a result of Customer’s modification of the Aircraft, and (v)
Provisioning Items which become excess as a result of a change in Customer’s
operating parameters, as provided to Boeing pursuant to the initial provisioning
meeting and which were the basis of Boeing’s initial provisioning
recommendations for the Aircraft.
|
P.A.
No. 3323
|
|
|
| Spare_Parts_Initial_Provisioning |
|
|
|
BOEING
PROPRIETARY
|
Xiamen Airlines
3323-01
Page 5
6.3 Notification and
Format. Customer will notify Boeing, in writing when Customer desires to
return Provisioning Items under the provisions of this Article 6. Customer’s
notification will include a detailed summary, in part number sequence, of the
Provisioning Items Customer desires to return. Such summary will be in the form
of listings, tapes, diskettes or other media as may be mutually agreed between
Boeing and Customer and will include part number, nomenclature, purchase order
number, purchase order date and quantity to be returned. Within five (5)
business days after receipt of Customer’s notification. Boeing will advise
Customer in writing when Boeing’s review of such summary will be
completed.
6.4 Review and Acceptance by
Boeing. Upon completion of Boeing’s review of any detailed summary
submitted by Customer pursuant to Article 6.3, Boeing will issue to Customer a
Material Return Authorization (MRA) for those Provisioning Items Boeing agrees
are eligible for repurchase in accordance with this Article 6. Boeing will
advise Customer of the reason that any Provisioning Item included in Customer’s
detailed summary is not eligible for return. Boeing’s MRA will state the date by
which Provisioning Items listed in the MRA must be redelivered to Boeing, and
Customer will arrange for shipment of such Provisioning Items
accordingly.
6.5 Price and Payment.
The price of each Provisioning Item repurchased by Boeing pursuant to this
Article 6 will be an amount equal to 100% of the original invoice price thereof
except that the repurchase price of Provisioning Items purchased pursuant to
Article 3.2.2 will not include Boeing’s 12% handling charge. Boeing will pay the
repurchase price by issuing a credit memorandum in favor of Customer which may
be applied against amounts due Boeing for the purchase of Spare Parts or
Standards.
6.6 Delivery of Repurchased
Provisioning Items. Provisioning Items repurchased by Boeing pursuant to
this Article 6 will be delivered to Boeing F.O.B. at its Seattle Distribution
Center or such other destination as Boeing may reasonably
designate.
|
P.A.
No. 3323
|
|
|
| Spare_Parts_Initial_Provisioning |
|
|
|
BOEING
PROPRIETARY
|
Xiamen Airlines
3323-01
Page 6
7. Title and Risk of
Loss.
Title and
risk of loss of any Spare Parts or Standards delivered to Customer by Boeing in
accordance with this Letter Agreement will pass from Boeing to Customer in
accordance with the applicable provisions of the CSGTA. Title to and risk of
loss of any Spare Parts or Standards returned to Boeing by Customer in
accordance with this Letter Agreement will pass to Boeing upon delivery of such
Spare Parts or Standards to Boeing in accordance with the provisions of Article
5.2 or Article 6.6, herein, as appropriate.
8. Termination for Excusable
Delay.
In the
event of termination of the Purchase Agreement pursuant to Article 7 of the AGTA
with respect to any Aircraft /added to the Purchase Agreement by the
Supplemental Agreement/, such termination will, if Customer so requests by
written notice received by Boeing within fifteen (15) days after such
termination, also discharge and terminate all obligations and liabilities of the
parties as to any Spare Parts or Standards which Customer had ordered pursuant
to the provisions of this Letter Agreement as initial provisioning for such
Aircraft and which are undelivered on the date Boeing receives such written
notice.
9. Order of
Precedence.
In the
event of any inconsistency between the terms of this Letter Agreement and the
terms of any other provisions of the CSGTA, the terms of this Letter Agreement
will control.
|
P.A.
No. 3323
|
|
|
| Spare_Parts_Initial_Provisioning |
|
|
|
BOEING
PROPRIETARY
|
Xiamen Airlines
3323-01
Page 7
Very
truly yours,
THE
BOEING COMPANY
|
By
|
/s/
Xxxxxxxxx X. Xxxxxx
|
| Its |
Attorney-In-Fact
|
|
ACCEPTED
AND AGREED TO this
|
|
|
Date:
April 18, 2008
|
|
|
XIAMEN
AIRLINES
|
|
|
By
|
/s/
Xxxx Xxxxx Hua
|
|
Its
|
|
|
P.A.
No. 3323
|
|
|
| Spare_Parts_Initial_Provisioning |
|
|
|
BOEING
PROPRIETARY
|
| The Boeing Company | |
| X.X. Xxx 0000 | |
| Xxxxxxx, XX 00000-0000 |
3323-02
Xiamen
Airlines
00
Xxxxxxx Xxxx
Xxxxxx,
000000
Xxxxxx
Xxxxxxxx
People’s
Republic of China
Subject:
Aircraft Model Substitution
|
Reference:
|
Purchase
Agreement No. 3323 (the Purchase Agreement) between The Boeing Company
(Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C 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.
Customer
may substitute the purchase of Boeing Model 737-700 or 737-900ER aircraft (Substitute Aircraft) in
place of any of the Aircraft, subject to the following terms and
conditions:
1. Customer’s Written
Notice.
Customer
will provide written notice of its intention to substitute the purchase of an
Aircraft with the purchase of a Substitute Aircraft,
(a) no
later than the first day of the month that is fifteen months prior to the
scheduled month of delivery of the Aircraft for which it will be substituted,
provided that a Substitute Aircraft has been previously certified and delivered
to Customer, or:
(b) no
later than the first day of the month that is eighteen months prior to the
scheduled month of delivery of the Aircraft for which it will be substituted, if
a Substitute Aircraft has not been previously certified and delivered to
Customer.
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
Xiamen Airlines
3323-02
Page 2
(c) for
737-900ER Substitute Aircraft with auxiliary fuel tanks, the
notices in (a) and (b) above shall be seventeen months and twenty months,
respectively.
2. Boeing’s Production
Capability.
Customer’s
substitution right is conditioned upon Boeing’s having production capability for
the Substitute Aircraft in the scheduled delivery month of the Aircraft for
which it will be substituted.
Boeing
will tentatively quote delivery positions for Substitute Aircraft to allow
Customer to secure quotes from Buyer Furnished Equipment vendors, and Boeing to
secure quotes from Seller Furnished Equipment vendors which supports the
required on-dock dates. If Boeing is unable to manufacture the Substitute
Aircraft in the scheduled delivery month of the Aircraft for which it will be
substituted, then Boeing shall promptly make a written offer of an alternate
delivery month for Customer’s consideration and written acceptance within thirty
days of such offer.
3. Definitive
Agreement.
Customer’s
substitution right and Boeing’s obligation in this Letter Agreement are further
conditioned upon Customer’s and Boeing’s executing a definitive agreement for
the purchase of the Substitute Aircraft within thirty (30) days of Customer’s
substitution notice to Boeing or of Customer’s acceptance of an alternate
delivery month in accordance with paragraph 2, above.
4. Price and Advance
Payments.
The
Airframe Price, Optional Features Prices, Engine Price and Aircraft Basic Price
will be adjusted to Boeing’s and the engine manufacturer’s then-current prices
for such elements as of the date of execution of the definitive purchase
agreement for the Substitute Aircraft. The escalation indices and methodology
used to estimate the Advance Payment Base Prices will be adjusted to Boeing’s
and the engine manufacturer’s then-current provisions for such elements as of
the date of execution of the definitive purchase agreement for the Substitute
Aircraft.
|
P.A.
No. 3323
|
|
|
|
BOEING
PROPRIETARY
|
Xiamen
Airlines
3323-02
Page
3
If the
Advance Payment Base Price for any Substitute Aircraft is higher than that of
the Aircraft. Customer will pay to Boeing the amount of the difference as of the
date of execution of the definitive agreement for the Substitute Aircraft. If
the Advance Payment Base Price of the Substitute Aircraft is lower than that of
the Aircraft, Boeing will retain any excess amounts previously paid by Customer
until the next payment is due from Customer, at which point Customer may reduce
the amount of such payment by the amount of the excess. In no case will Boeing
refund or pay interest on any excess amounts created by virtue of Customer’s
exercise of the rights of substitution described in this agreement.
5. Confidential
Treatment.
Boeing
and Customer understand that certain information contained in this Letter
Agreement is considered to be confidential. The parties agree that they will
treat this Letter Agreement and the information contained herein as confidential
and will not, without the prior written consent of the other party, disclose
this Letter Agreement or any information contained herein to any other person or
entity except. (1) to those of their respective legal counsel, auditors,
accountants, insurance brokers and other advisers who have a need to know the
information for purposes of interpreting Customer’s rights or interpreting or
performing Customer’s obligations under the Purchase Agreement, subject to such
parties’ written agreements that they will treat the information as
confidential, (2) to a bank for the sole purpose of financing of the purchase of
such Aircraft and subject to such bank’s written agreement that it will treat
the information as confidential, (3) as required by the rules of any stock
market applicable to the parties on condition that the party wishing to make
such disclosure shall first use reasonable efforts to seek relief from the risk
of disclosure to competitors or others with whom either of the parties has
business relations of information which might be detrimental to the interest of
either of the parties, or (4) as may be required by applicable law.
P.A. No.
3323
BOEING
PROPRIETARY
Xiamen
Airlines
3323-02
Page
4
|
Very
truly yours,
|
|
|
THE
BOEING COMPANY
|
|
|
By
|
/s/
Xxxxxxxxx X. Xxxxxx
|
| Its |
Attorney-In-Fact
|
|
ACCEPTED
AND AGREED TO this
|
|
|
Date:
April 18, 2008
|
|
|
XIAMEN
AIRLINES
|
|
|
By
|
/s/
Xxxx Xxxxx Hua
|
|
Its
|
|
P.A. No.
3323
BOEING
PROPRIETARY
|
The
Boeing Company
|
|
|
X.X.
Xxx 0000
|
|
|
Xxxxxxx,
XX
00000-0000
|
3323-03
Xiamen
Airlines
00
Xxxxxxx Xxxx
Xxxxxx,
000000
Xxxxxx
Xxxxxxxx
People’s
Republic of China
|
Subject:
|
Boeing
Purchase of Buyer Furnished Equipment
|
|
Reference:
|
Purchase
Agreement No. 3323 (the Purchase Agreement) between The Boeing Company
(Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C 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.
Customer
will sell to Boeing the Buyer Furnished Equipment (BFE) listed in the Annex to
Exhibit A to this Letter Agreement under the terms and conditions set forth
below.
1. Customer
will deliver to Boeing a Xxxx of Sale for the BFE conveying good title, free of
any encumbrances, in the form of Exhibit A to this Letter Agreement (BFE Xxxx of
Sale) immediately prior to delivery of the Aircraft.
2. The
BFE purchase price will be the amount stated on the BFE Xxxx of Sale applicable
to the Aircraft and will be paid to Customer simultaneously with receipt by
Boeing of the Aircraft Price balance at Aircraft delivery. Boeing will deliver a
Xxxx of Sale for the BFE to Customer at the time of payment in the form of
Exhibit B to this Letter Agreement.
3. Customer
will pay to Boeing the amount of any taxes, duties or other charges of whatever
nature imposed by any United States, Federal, State or local taxing authority,
or any taxing authority outside the United States required to be paid by Boeing
as a result of any sale, purchase, use, ownership, delivery, transfer, storage
or other activity associated with any of the BFE purchased as part of this
Letter Agreement.
4. The
purchase price of the Aircraft will be increased by the amount paid by Boeing
for the BFE as shown on the applicable BFE Xxxx of Sale plus any amounts which
are identified at the time of Aircraft delivery to be due to Boeing from
Customer pursuant to the provisions of paragraph 3, above. The remainder of any
charges due Boeing from Customer pursuant to paragraph 3 will be payable to
Boeing upon demand.
P.A. No.
3323
Boeing_BFE_Purchase
BOEING
PROPRIETARY
Xiamen
Airlines
3323-03
Page
2
5. Customer
will indemnify and hold harmless Boeing from and against all claims, suits,
actions, liabilities, damages, costs and expenses for any actual or alleged
infringement of any patent issued or equivalent right under the laws of any
country arising out of or in any way connected with any sale, purchase, use,
ownership, delivery, transfer, storage or other activity associated with any of
the BFE purchased as part of this Letter Agreement.
6. Customer
will indemnify and hold harmless Boeing from and against all claims and
liabilities, including costs and expenses (including attorneys’ fees) incident
thereto or incident to successfully establishing the right to indemnification,
for injury to or death of any person or persons, including employees of Customer
but not employees of Boeing, or for loss of or damage to any property, including
any aircraft, arising out of or in any way connected with the performance by
Boeing of services or other obligations under this Letter Agreement and whether
or not arising in tort or occasioned in whole or in part by the negligence of
Boeing.
7. Boeing
makes no warranty other than warranty of such title to the BFE as has been
transferred by Customer to Boeing pursuant to this Letter Agreement. The
exclusion of liabilities and other provisions of the AGTA are applicable to this
Letter Agreement.
8. For
the purposes of this Letter Agreement, the term “Boeing” includes The Boeing
Company, its divisions, subsidiaries, affiliates, the assignees of each, and
their directors, officers, employees and agents.
P.A. No.
3323
Boeing_BFE_Purchase
BOEING
PROPRIETARY
Xiamen
Airlines
3323-03
Page
3
|
Very
truly yours,
|
|
|
THE
BOEING COMPANY
|
|
|
By
|
/s/
Xxxxxxxxx X. Xxxxxx
|
| Its |
Attorney-In-Fact
|
|
ACCEPTED
AND AGREED TO this
|
|
|
Date:
April 18, 2008
|
|
|
XIAMEN
AIRLINES
|
|
|
By
|
/s/
Xxxx Xxxxx Hua
|
|
Its
|
|
|
Attachments
|
|
P.A. No.
3323
Boeing_BFE_Purchase
BOEING
PROPRIETARY
Exhibit A
to
3323-03
Page
1
FULL WARRANTY XXXX OF
SALE
Xiamen
Airlines (Seller) in consideration of the promise of /The Boeing Company/
/[Name of
Boeing’s Assignee:]/ (Buyer) to pay to Seller United States
Dollars + (U.S.
$+ ) hereby sells to Buyer the goods
described in the Schedule of Equipment
attached hereto (BFE). Such payment by Buyer will be made immediately after
delivery to Seller of and payment for the Aircraft bearing Manufacturer’s Serial
No. + on which the BFE is installed.
Seller
warrants to Buyer that it has good title to the BFE free and clear of all liens,
encumbrances and rights of others; and that it will warrant and defend such
title against all claims and demands whatsoever.
This Xxxx
of Sale is delivered by Seller to Buyer in Seattle, Washington, and governed by
the law of the State of Washington, U.S.A. EXCLUSIVE OF WASHINGTON’S CONFLICTS
OF LAWS PRINCIPLES.
|
XIAMEN
AIRLINES
|
||
|
By
|
||
Dated:
+ , 20++
Receipt
of this Xxxx of Sale is hereby acknowledged by Buyer by its duly authorized
representative.
|
/THE
BOEING COMPANY/
|
||
|
/[NAME OF BOEING’S
ASSIGNEE:]/
|
||
|
By
|
||
P.A. No.
3323
Boeing_BFE_Purchase
BOEING
PROPRIETARY
Annex
to
Exhibit A
to
3323-03
SCHEDULE OF EQUIPMENT
(BFE)
Applicable
to
Model
737-85C Aircraft bearing
Manufacturer’s
Serial No. +
Document
PED
issued
Revision
of
P.A. No.
3323
Boeing_BFE_Purchase
BOEING
PROPRIETARY
Exhibit B
to
3323-03
Page
1
BOEING XXXX OF
SALE
/The
Boeing Company/ /[Name of Boeing’s Assignee:]/ (Seller) in
consideration of the sum of $1.00 and other valuable consideration hereby sells
to Buyer the goods described in the Schedule of Equipment attached hereto
(BFE).
Seller
represents and warrants that it has such title to the BFE as was previously
transferred to Seller by Buyer and that it hereby conveys such BFE and such
title thereto to Buyer.
This Xxxx
of Sale is delivered by Seller to Buyer in Seattle, Washington, and governed by
the law of the State of Washington, U.S.A EXCLUSIVE OF WASHINGTON’S CONFLICTS OF
LAWS PRINCIPLES.
|
/THE
BOEING COMPANY/
|
|
|
/[NAME
OF BOEING’S ASSIGNEE:]/
|
|
|
By
|
|
Dated:
+ , 20++
Receipt
of this Xxxx of Sale is hereby acknowledged by Buyer by its duly authorized
representative.
|
XIAMEN
AIRLINES
|
|
|
By
|
|
P.A. No.
3323
Boeing_BFE_Purchase
BOEING
PROPRIETARY
Annex
to
Exhibit B
to
3323-03
SCHEDULE OF EQUIPMENT
(BFE)
Applicable
to
Model
737-85C Aircraft bearing
Manufacturer’s
Serial No. +
Document
PED
issued
Revision
of
|
P.A.
No. 3323
Boeing_BFE_Purchase
|
||
|
BOEING
PROPRIETARY
|
|
The
Boeing Company
|
|
|
X.X.
Xxx 0000
|
|
|
Xxxxxxx,
XX 00000-0000
|
3323-04
Xiamen
Airlines
00
Xxxxxxx Xxxx
Xxxxxx,
000000
Xxxxxx
Xxxxxxxx
People’s
Republic of China
|
Subject:
|
Government
Approval
|
|
Reference:
|
Purchase
Agreement No. 3323 (the Purchase Agreement) between The Boeing Company
(Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C 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.
|
1.
|
Government
Approval.
|
Customer
will use its best efforts to obtain approval for the purchase of the Aircraft
from the Government of the People’s Republic of China as soon as practicable
after the signing of this Letter Agreement, and will advise Boeing promptly
after such approval has been obtained.
|
2.
|
Rescheduling of
Aircraft.
|
If Boeing
has not received written or telegraphic notice from Customer on or before
January 1, 2012 that Government approval for the Aircraft has been obtained,
Boeing may reschedule any or all of the Aircraft at any time thereafter as it
deems necessary based on Boeing’s production considerations and constraints,
unless the advance payments for all Aircraft are current in accordance with the
Purchase Agreement. Boeing will give Customer ten days advance notice of any
such Aircraft rescheduling, and will not reschedule such Aircraft if advance
payments on all Aircraft are current prior to the expiration of such ten day
notification period.
|
P.A.
No. 3323
Government_Approval
|
||
|
BOEING
PROPRIETARY
|
Xiamen
Airlines
3323-04
Page
2
|
3.
|
Effect of Aircraft
Rescheduling.
|
If Boeing
reschedules any Aircraft under the above provisions, then Customer and Boeing
will complete a Supplemental Agreement to document the revised Aircraft delivery
schedules within thirty (30) days after the ten day advance notice is given.
Boeing agrees that all advance payments due on the effective date of the
Supplemental Agreement may be deferred (without interest or penalty fees) until
ten business days after the date that Customer obtains government approval, by
which time Customer will pay all advance payments specified in the Purchase
Agreement as being due on or before that date.
|
4.
|
Confidential
Treatment.
|
Boeing
and Customer understand that certain information contained in this Letter
Agreement is considered to be confidential. The parties agree that they will
treat this Letter Agreement and the information contained herein as confidential
and will not, without the prior written consent of the other party, disclose
this Letter Agreement or any information contained herein to any other person or
entity except, (1) to those of their respective legal counsel, auditors,
accountants, insurance brokers and other advisers who have a need to know the
information for purposes of interpreting Customer’s rights or interpreting or
performing Customer’s obligations under the Purchase Agreement, subject to such
parties’ written agreements that they will treat the information as
confidential, (2) to a bank for the sole purpose of financing of the purchase of
such Aircraft and subject to such bank’s written agreement that it will treat
the information as confidential, (3) as required by the rules of any stock
market applicable to the parties on condition that the party wishing to make
such disclosure shall first use reasonable efforts to seek relief from the risk
of disclosure to competitors or others with whom either of the parties has
business relations of information which might be detrimental to the interest of
either of the parties, or (4) as may be required by applicable law.
|
P.A.
No. 3323
Government_Approval
|
||
|
BOEING
PROPRIETARY
|
Xiamen
Airlines
3323-04
Page
3
|
Very
truly yours,
|
|
|
THE
BOEING COMPANY
|
|
|
By
|
/s/
Xxxxxxxxx X. Xxxxxx
|
|
Its
|
Attorney-In-Fact
|
|
ACCEPTED
AND AGREED TO this
|
|
|
Date:
April 18, 2008
|
|
|
XIAMEN
AIRLINES
|
|
|
By
|
/s/
Xxxx Xxxxx Hua
|
|
Its
|
|
|
P.A.
No. 3323
Government_Approval
|
||
|
BOEING
PROPRIETARY
|
|
The
Boeing Company
|
|
|
X.X.
Xxx 0000
|
|
|
Xxxxxxx,
XX 00000-0000
|
3323-05
Xiamen
Airlines
00
Xxxxxxx Xxxx
Xxxxxx,
000000
Xxxxxx
Xxxxxxxx
People’s
Republic of China
|
Subject:
|
Loading
of Customer Software
|
|
Reference:
|
Purchase
Agreement No. 3323 (the Purchase Agreement) between The Boeing Company
(Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C aircraft
(the Aircraft)
|
This
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.
1. Customer
may request Boeing to install software owned by or licensed to Customer
(Software) in the following systems in the Aircraft: i) aircraft communications
addressing and reporting system (ACARS), ii) digital flight data acquisition
unit (DFDAU), iii) flight management system (FMS), iv) cabin management system
(CMS), v) engine indication and crew alerting system (EICAS), vi) airplane
information management system (AIMS), vii) satellite communications system
(SATCOM), and viii) In-Flight Entertainment (IFE).
2. For
all Software described in paragraph 1, above, other than Software to be
installed in SATCOM and IFE, the Software is not part of the configuration of
the Aircraft certified by the FAA and therefore cannot be installed prior to
delivery. If requested by Customer, Boeing will install such Software after the
transfer to Customer of title to the Aircraft, but before fly away.
3. The
SATCOM Software is part of the configuration of the Aircraft and included in the
type design. If requested by Customer, Boeing will install the SATCOM Software
prior to transfer to Customer of title to the Aircraft.
|
P.A.
No. 3323
Loading
of Customer Software
|
|
BOEING
PROPRIETARY
|
Xiamen
Airlines
3323-05
Page
2
4. For
IFE Software, if requested by Customer, Boeing will make the Aircraft accessible
to Customer and Customer’s IFE Software supplier so that the supplier can
install the Software after delivery of the Aircraft, but before fly
away.
5. All
Software which is installed by Boeing other than the SATCOM Software will be
subject to the following conditions:
|
|
i)
|
Customer
and Boeing agree that the Software is BFE for the purposes of Articles
3.1.3, 3.2, 3.4, 3.5, 3.10, 10 and 11 of Exhibit A, Buyer Furnished
Equipment Provisions Document, to the AGTA and such articles apply to the
installation of the Software.
|
|
|
ii)
|
Customer
and Boeing further agree that the installation of the Software is a
service under Exhibit B. Customer Support Document, to the
AGTA.
|
|
|
iii)
|
Boeing
makes no warranty as to the performance of such installation and Article
11 of Part 2 of Exhibit C of the AGTA, Disclaimer and Release; Exclusion
of Liabilities and Article 8.2, Insurance, of the AGTA apply to the
installation of the Software.
|
|
P.A.
No. 3323
Loading
of Customer Software
|
|
BOEING
PROPRIETARY
|
Xiamen
Airlines
3323-05
Page
3
|
Very
truly yours,
|
|
|
THE
BOEING COMPANY
|
|
|
By
|
/s/
Xxxxxxxxx X. Xxxxxx
|
|
Its
|
Attorney-In-Fact
|
|
ACCEPTED
AND AGREED TO this
|
|
|
Date:
April 18, 2008
|
|
|
XIAMEN
AIRLINES
|
|
|
By
|
/s/
Xxxx Xxxxx Hua
|
|
Its
|
|
|
P.A.
No. 3323
Loading
of Customer Software
|
|
BOEING
PROPRIETARY
|
|
The
Boeing Company
|
|
|
X.X.
XXX 0000
|
|
|
Xxxxxxx,
XX
00000-0000
|
3323-06
Xiamen
Airlines
00
Xxxxxxx Xxxx
Xxxxxx,
000000
Xxxxxx
Xxxxxxxx
People’s
Republic of China
|
Subject:
|
Right
to Purchase Additional Aircraft
|
|
Reference:
|
Purchase
Agreement No. 3323 (the Purchase Agreement) between The Boeing Company
(Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C
aircraft.
|
This
letter agreement (Letter Agreement) amends and supplements the Purchase
Agreement. All capitalized terms used but not defined in this Letter Agreement
have the same meaning as in the Purchase Agreement.
|
1.0
|
Right to Purchase
Incremental Aircraft
|
Subject
to the terms and conditions contained herein, in addition to the Aircraft
described in Table 1 to the Purchase Agreement as of the date of execution of
this Letter Agreement, Customer will have the right to purchase (Purchase Right)
Ten (10) additional Boeing Model 737-85C aircraft on the terms and conditions
described in this Letter Agreement (Purchase Right Aircraft).
|
2.0
|
Delivery.
|
The
Purchase Right Aircraft are offered subject to available position for delivery
during the period January 1, 2016 through December 31, 2016.
|
3.0
|
Notice of Exercise and
Payment of Deposit
|
3.1 Customer
shall give written notice to Boeing (Notice of Exercise) of its desire to
exercise a Purchase Right. Such notice shall be accompanied by payment by
electronic transfer to the account specified below of Boeing’s then standard
proposal deposit for model 737-800 aircraft (Deposit) for each Purchase Right
Aircraft subject to the Notice of Exercise. The Deposit will be applied against
the first advance payment due for each such Purchase Right
Aircraft.
|
JPMorgan
Chase
|
|
|
ABA
No. 000000000
|
|
|
Account
No. 000-0-000000
|
|
P.A.
No. 3323
Purchase_Rights
|
|
BOEING
PROPRIETARY
|
Xiamen
Airlines
3323-06
Page
2
At the
time of its receipt of each Notice of Exercise and related Deposit(s), Boeing
will advise Customer as to the availability of the delivery month(s)
requested.
3.2
If Boeing must make production decisions which would affect the delivery
of any or all Purchase Right Aircraft during the time period set forth in
Article 2.0, above, Boeing shall provide written notification to Customer.
Customer shall have thirty (30) days after receipt of Boeing’s notification in
which to submit its Notice of Exercise and Deposit for each Purchase Right
Aircraft which Customer desires to exercise. Upon receipt, Boeing will advise
Customer as to the availability of the delivery month(s) requested.
|
4.0
|
Configuration
|
4.1 Subject
to the provisions of Article 4.2, below, the configuration for the Purchase
Right Aircraft will be the detail specification for model 737-85C aircraft at
the revision level in effect at the time of the Notice of Exercise. Such detail
specification will be revised to include (i) changes applicable to such detail
specification that are developed by Boeing between the date of the Notice of
Exercise and the signing of the definitive agreement to purchase the Purchase
Rights Aircraft, (ii) changes required to obtain required regulatory
certificates, and (iii) other changes as mutually agreed.
4.2 Boeing
reserves the right to configure the Purchase Right Aircraft starting from a
different configuration specification, provided that it can achieve the same
configuration which would result pursuant to the provisions of Article
4.1
|
5.0
|
Price
|
5.1 The
Airframe Price, Engine Price, Optional Features Prices, and Aircraft Basic Price
for the Purchase Right Aircraft will be Boeing’s then current prices as of the
date of signing of the definitive agreement for the Purchase Right
Aircraft.
5.2 Advance
payments are required for each Purchase Right Aircraft, and the escalation
indices and methodology used to estimate the Advance Payment Base Prices will be
adjusted to Boeing’s then current provisions for such elements as of the date of
signing of such definitive agreement. The remainder of the Aircraft Price will
be due at delivery of each Purchase Right Aircraft.
|
P.A.
No. 3323
Purchase_Rights
|
|
BOEING
PROPRIETARY
|
Xiamen
Airlines
3323-06
Page
3
|
6.0
|
Definitive Purchase
Agreement.
|
Following
Customer’s exercise of a Purchase Right in accordance with the terms and
conditions stated herein and Boeing’s identification of an available delivery
position acceptable to Customer, the parties will sign a definitive agreement
for the purchase of such Purchase Right Aircraft within 60 calendar days of such
exercise. Such definitive agreement will include the provisions then contained
in the Purchase Agreement as modified to reflect the provisions of this Letter
Agreement and any additional mutually agreed terms and conditions.
|
7.0
|
General Expiration of
Rights.
|
7.1 Each
Purchase Right shall expire at the time of execution of the purchase agreement
for the applicable Purchase Right Aircraft, or, if no such purchase agreement is
executed, on December 31, 2013.
|
8.0
|
Assignment.
|
The
Purchase Rights described in this Letter Agreement are provided in consideration
of Customer’s becoming the operator of each Purchase Right Aircraft, and cannot
be assigned, in whole or in part, without the prior written consent of
Boeing.
|
9.0
|
Confidential
Treatment.
|
Boeing
and Customer understand that certain information contained in this Letter
Agreement is considered to be confidential. The parties agree that they will
treat this Letter Agreement and the information contained herein as confidential
and will not, without the prior written consent of the other party, disclose
this Letter Agreement or any information contained herein to any other person or
entity except, (1) to those of their respective legal counsel, auditors,
accountants, insurance brokers and other advisers who have a need to know the
information for purposes of interpreting Customer’s rights or interpreting or
performing Customer’s obligations under the Purchase Agreement, subject to such
parties’ written agreements that they will treat the information as
confidential, (2) to a bank for the sole purpose of financing of the purchase of
such Aircraft and subject to such bank’s written agreement that it will treat
the information as confidential, (3) as required by the rules of any stock
market applicable to the parties on condition that the party wishing to make
such disclosure shall first use reasonable efforts to seek relief from the risk
of disclosure to competitors or others with whom either of the parties has
business relations of information which might be detrimental to the interest of
either of the parties, or (4) as may be required by applicable law.
|
P.A.
No. 3323
Purchase_Rights
|
|
BOEING
PROPRIETARY
|
Xiamen
Airlines
3323-06
Page
4
|
Very
truly yours,
|
|
|
THE
BOEING COMPANY
|
|
|
By
|
/s/
Xxxxxxxxx X. Xxxxxx
|
|
Its
|
Attorney-In-Fact
|
|
ACCEPTED
AND AGREED TO this
|
|
|
Date:
April 18, 2008
|
|
|
XIAMEN
AIRLINES
|
|
|
By
|
/s/
Xxxx Xxxxx Hua
|
|
Its
|
|
|
Its
|
|
|
P.A.
No. 3323
Purchase_Rights
|
|
BOEING
PROPRIETARY
|
|
The
Boeing Company
|
|
|
X.X.
XXX 0000
|
|
|
Xxxxxxx,
XX
00000-0000
|
3323-07
Xiamen
Airlines
00
Xxxxxxx Xxxx
Xxxxxx,
000000
Xxxxxx
Xxxxxxxx
People’s
Republic of China
|
Subject:
|
Seller
Purchased Equipment
|
|
Reference:
|
Purchase
Agreement No. 3323 (the Purchase Agreement) between The Boeing Company
(Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C aircraft
(the Aircraft)
|
This
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.
Definition of
Terms:
Seller Purchased Equipment (SPE):
Buyer Furnished Equipment (BFE) that Boeing purchases for
Customer.
Developmental Buyer Furnished
Equipment (DBFE): BFE not previously certified for installation on the
same model aircraft.
Developmental Seller Purchased
Equipment (DSPE): DBFE which is converted to SPE. This Letter Agreement
does not include developmental avionics. Developmental avionics are avionics
that have not been previously certified for installation on the same model
aircraft.
P.A. No.
3323
Seller_Purchased_Equipment
BOEING
PROPRIETARY
Xiamen
Airlines
3323-07
Page
2
|
1.
|
Price.
|
Advance Payments. An
estimated SPE price is included in the Advance Payment Base Prices shown in
Table 1 for the purpose of establishing the advance payments for the
Aircraft.
Aircraft Price. The
Aircraft Price will be adjusted to reflect the actual costs charged to Boeing by
the SPE suppliers and transportation charges.
|
2.
|
Responsibilities.
|
|
2.1
|
Customer
is responsible for:
|
|
(i)
|
selecting
and notifying Boeing of the supplier for all items identified in paragraph
1.1 of Supplemental Exhibit BFE1 of the Purchase
Agreement,
|
|
(ii)
|
selecting
a FAA certifiable part; and
|
|
(iii)
|
providing
to Boeing the SPE part specification/Customer
requirements.
|
|
2.2.
|
Boeing
is responsible for:
|
|
(i)
|
placing
and managing the purchase order with the
supplier;
|
|
(ii)
|
coordinating
with the suppliers on technical
issues;
|
|
(iii)
|
ensuring
that the delivered SPE complies with the part
specification;
|
|
(iv)
|
obtaining
certification of the Aircraft with the SPE installed;
and
|
|
(v)
|
obtaining
for Customer the supplier’s standard warranty for the SPE. SPE is deemed
to be BFE for purposes of Part 2 and Part 4 of Exhibit C, the Product
Assurance Document.
|
P.A. No.
3323
Seller_Purchased_Equipment
BOEING
PROPRIETARY
Xiamen
Airlines
3323-07
Page
3
|
3.
|
Supplier
Selection For SPE Galleys and
Seats.
|
In
addition to those responsibilities described above, for SPE galleys and seats
the following provisions apply with respect to Customer’s selection of
suppliers:
Galley Requirements.
Customer will provide Boeing the definitive galley configuration requirements,
including identification of refrigeration requirements and fixed and removable
insert equipment by quantity, manufacturer and part number not later than
December 1, 2013.
Seat Requirements.
Customer will provide to Boeing the definitive seat configuration requirements
not later than December 1, 2013.
Bidder’s List. For
information purposes, Boeing will submit to Customer a bidder’s list of existing
suppliers of seats and galleys within 120 days of the supplier selection date
referred to in paragraph 2.1 (i) above.
Request for Quotation
(RFQ). Approximately 90 days prior to the supplier selection date. Boeing
will issue its RFQ inviting potential bidders to submit bids for the galleys and
seats within 30 days of the selection date.
Recommended Bidders.
Not later than 15 days prior to the supplier selection date. Boeing will submit
to Customer a list of recommended bidders from which to choose a supplier for
the galleys and seats. The recommendation is based on an evaluation of the bids
submitted using price, weight, warranty and schedule as the
criteria.
Supplier
Selection. If Customer selects a seat or galley supplier that is
not on the Boeing recommended list, such seat or galley will become BFE and the
provisions of Exhibit A, Buyer Furnished Equipment Provisions Document, of the
AGTA will apply.
|
4.
|
Changes.
|
After
this Letter Agreement
is signed, changes to SPE may only be made by and between Boeing and the
suppliers. Customer’s contacts with SPE suppliers relating to design (including
selection of materials and colors), weights, prices or schedules are for
informational purposes only. If Customer wants any changes made, requests must
be made directly to Boeing for coordination with the supplier.
P.A. No.
3323
Seller_Purchased_Equipment
BOEING
PROPRIETARY
Xiamen
Airlines
3323-07
Page
4
|
5.
|
Proprietary
Rights.
|
Boeing’s
obligation to purchase SPE will not impose upon Boeing any obligation to
compensate Customer or any supplier for any proprietary rights Customer may have
in the design of the SPE.
|
6.
|
Remedies.
|
If
Customer does not comply with the obligations above, Boeing may:
(i)
delay delivery of the Aircraft;
(ii) deliver
the Aircraft without installing the SPE;
(iii) substitute
a comparable part and invoice Customer for the cost:
(iv) increase
the Aircraft Price by the amount of Boeing’s additional costs attributable to
such noncompliance.
|
7.
|
Customer’s
Indemnification of Boeing.
|
Customer
will indemnify and hold harmless Boeing from and against all claims and
liabilities, including costs and expenses (including attorneys’ fees) incident
thereto or incident to successfully establishing the right to indemnification,
for injury to or death of any person or persons, including employees of Customer
but not employees of Boeing, or for loss of or damage to any property, including
Aircraft, arising out of or in any way connected with any nonconformance or
defect in any SPE and whether or not arising in tort or occasioned in whole or
in part by the negligence of Boeing. This indemnity will not apply with respect
to any nonconformance or defect caused solely by Boeing’s installation of the
SPE.
P.A. No.
3323
Seller_Purchased_Equipment
BOEING
PROPRIETARY
Xiamen
Airlines
3323-07
Page
5
|
Very
truly yours,
|
|
|
THE
BOEING COMPANY
|
|
|
By
|
/s/
Xxxxxxxxx X. Xxxxxx
|
| Its |
Attorney-In-Fact
|
|
ACCEPTED
AND AGREED TO this
|
|
|
Date:
April 18, 2008
|
|
|
XIAMEN
AIRLINES
|
|
|
By
|
/s/
Xxxx Xxxxx Hua
|
| Its |
|
P.A. No.
3323
Seller_Purchased_Equipment
BOEING
PROPRIETARY
|
The
Boeing Company
|
|
|
X.X.
XXX 0000
|
|
|
Xxxxxxx,
XX
00000-0000
|
3323-08
Xiamen
Airlines
00
Xxxxxxx Xxxx
Xxxxxx,
000000
Xxxxxx
Xxxxxxxx
People’s
Republic of China
|
Subject:
|
Special
Matters
|
|
Reference:
|
Purchase
Agreement No. 3323 (the Purchase Agreement) between The Boeing Company
(Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C aircraft
(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.
1. Escalatable Dollar Credit
Memoranda. Boeing will provide the following
credit memoranda at the time of delivery of each Aircraft. These credit
memoranda are expressed in July 2007 base year dollars, and are subject to
escalation in accordance with the applicable escalation provisions of the
Purchase Agreement.
|
|
1.1
|
Special Credit
Memorandum.
|
***
|
|
1.2
|
Customer Support
Credit Memorandum.
|
***
P.A. No.
3323
Special_Matters
BOEING
PROPRIETARY
Xiamen
Airlines
3323-08
Page
2
|
|
1.3
|
Customer Loyalty
Credit Memorandum.
|
***
2. Purchase Right
Aircraft. The Credit Memoranda
described in this Letter Agreement will be provided at delivery of each Purchase
Right Aircraft that is exercised pursuant to the terms of Letter Agreement
3323-06 to the Purchase Agreement.
3. Assignment. The
Credit Memoranda described in this Letter Agreement are provided as a financial
accommodation to Customer in consideration of Customer’s becoming the operator
of the Aircraft, and cannot be assigned, in whole or in part, without the prior
written consent of The Boeing Company.
4. Confidential
Treatment. Customer understands that the
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 (a) as
required by applicable law, governmental regulation or judicial process, (b)
with the consent of Boeing, (c) to the counsel of providers of financing in
connection with the Aircraft (each a “Finance Party”), (d) to bank examiners and
auditors, (e) to any Finance Party or to any person with whom any Finance Party
is in good faith conducting negotiations relating to the possible transfer and
sale of such Finance Party’s interest in the relevant Aircraft, if such entities
described in (c), (d) and (e) shall have entered into an agreement similar to
that contained in this clause whereby such entity agrees to hold such
information confidential.
P.A. No.
3323
Special_Matters
BOEING
PROPRIETARY
Xiamen
Airlines
3323-08
Page
3
|
Very
truly yours,
|
|
|
THE
BOEING COMPANY
|
|
| By |
/s/
Xxxxxxxxx X. Xxxxxx
|
| Its |
Attorney-In-Fact
|
|
ACCEPTED
AND AGREED TO this
|
|
|
Date:
April 18, 2008
|
|
|
XIAMEN AIRLINES
|
|
|
By
|
/s/
Xxxx Xxxxx Hua
|
| Its |
|
P.A. No.
3323
Special_Matters
BOEING
PROPRIETARY
|
The
Boeing Company
|
|
|
X.X.
XXX 0000
|
|
|
Xxxxxxx,
XX
00000-0000
|
6-1165-CKR-1446
Xiamen
Airlines
00
Xxxxxxx Xxxx
Xxxxxx,
000000
Xxxxxx
Xxxxxxxx
People’s
Republic of China
|
Subject:
|
Liquidated
Damages – Non-Excusable Delay
|
|
Reference:
|
Purchase
Agreement No. 3323 (the Purchase Agreement) between The Boeing Company
(Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C 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.
Definition of
Terms:
Non-Excusable Delay: Delay in delivery of any Aircraft beyond
the last day of the delivery month (Scheduled Delivery) established in the
Purchase Agreement by any cause that is not an Excusable Delay pursuant to
Article 7 of the AGTA and for which Customer is otherwise entitled to a remedy
from Boeing pursuant to applicable law.
|
1.
|
Liquidated
Damages
|
***
|
2.
|
Interest
|
In
addition to the Liquidated Damages in Paragraph 1, for each day of Non-Excusable
Delay commencing 14 days after the Scheduled Delivery, Boeing will pay Customer
interest calculated as follows (Interest):
P.A. No.
3323
Liquidated_Damages_Non-Excusable_Delay
BOEING
PROPRIETARY
Xiamen
Airlines
6-1165-CKR-1446
Page
2
The
product of the daily interest rate (computed by dividing the interest rate in
effect for each day by 365 day, or 366 days, as the case may be) times the
entire amount of advance payments received by Boeing for such Aircraft. The
interest rate in effect for each day shall be computed using the 90 day
Certificate of Deposit rate as published by the U.S. Edition of the Wall Street
Journal on the scheduled delivery date and reset every 90 days thereafter. Such
interest will be calculated on a simple interest basis and paid in full at
actual delivery
|
3.
|
Right of
Termination.
|
Customer
will not have the right to refuse to accept delivery of any Aircraft because of
a Non-Excusable Delay unless and until the aggregate duration of the
Non-Excusable Delay for such Aircraft exceeds 180 days (Non-Excusable Delay
Period). After such Non-Excusable Delay Period, either party may terminate the
Purchase Agreement as to such Aircraft by written or telegraphic notice given to
the other.
|
4.
|
Termination
|
If the
Purchase Agreement is terminated with respect to any Aircraft for a
Non-Excusable Delay, Boeing will, in addition to paying Liquidated Damages and
Interest as described above, promptly repay to Customer the entire principal
amount of the advance payments received by Boeing for such
Aircraft.
|
5.
|
Exclusive
Remedies
|
The
Liquidated Damages and Interest payable in accordance with Paragraphs 1 and 2 of
this Letter Agreement, and Customer’s right to terminate pursuant to this Letter
Agreement are Customer’s exclusive remedies for a Non-Excusable Delay and are in
lieu of all other damages, claims, and remedies of Customer arising at law or
otherwise for any Non-Excusable Delay in the Aircraft delivery. Customer hereby
waives and renounces all other claims and remedies arising at law or otherwise
for any such Non-Excusable Delay.
P.A. No.
3323
Liquidated_Damages_Non-Excusable_Delay
BOEING
PROPRIETARY
Xiamen
Airlines
6-1165-CKR-1446
Page
3
|
6.
|
Confidential
Treatment
|
Boeing
and Customer understand that certain information contained in this Letter
Agreement is considered to be confidential. The parties agree that they will
treat this Letter Agreement and the information contained herein as confidential
and will not, without the prior written consent of the other party, disclose
this Letter Agreement or any information contained herein to any other person or
entity except, (1) to those of their respective legal counsel, auditors,
accountants, insurance brokers and other advisers who have a need to know the
information for purposes of interpreting Customer’s rights or interpreting or
performing Customer’s obligations under the Purchase Agreement, subject to such
parties’ written agreements that they will treat the information as
confidential, (2) to a bank for the sole purpose of financing of the purchase of
such Aircraft and subject to such bank’s written agreement that it will treat
the information as confidential, (3) as required by the rules of any stock
market applicable to the parties on condition that the party wishing to make
such disclosure shall first use reasonable efforts to seek relief from the risk
of disclosure to competitors or others with whom either of the parties has
business relations of information which might be detrimental to the interest of
either of the parties, or (4) as may be required by applicable law.
P.A. No.
3323
Liquidated_Damages_Non-Excusable_Delay
BOEING
PROPRIETARY
Xiamen
Airlines
6-1165-CKR-1446
Page
4
|
Very
truly yours,
|
|
|
THE
BOEING COMPANY
|
|
|
By
|
/s/
Xxxxxxxxx X. Xxxxxx
|
| Its |
Attorney-In-Fact
|
|
ACCEPTED
AND AGREED TO this
|
|
|
Date:
April 18, 2008
|
|
|
XIAMEN
AIRLINES
|
|
|
By
|
/s/
Xxxx Xxxxx Hua
|
|
Its
|
|
P.A. No.
3323
Liquidated_Damages_Non-Excusable_Delay
BOEING
PROPRIETARY
|
The
Boeing Company
|
|
|
X.X.
Xxx 0000
|
|
|
Xxxxxxx,
XX 00000-0000
|
6-1165-CKR-1447
Xiamen
Airlines
00
Xxxxxxx Xxxx
Xxxxxx,
000000
Xxxxxx
Xxxxxxxx
People’s
Republic of China
|
Subject:
|
Aircraft
Performance Guarantees
|
|
Reference:
|
Purchase
Agreement No. 3323 (the Purchase Agreement) between The Boeing Company
(Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C 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.
Boeing
agrees to provide Customer with the performance guarantees in the Attachment
These guarantees are exclusive and expire upon delivery of the Aircraft to
Customer.
Boeing
and Customer understand that certain information contained in this Letter
Agreement is considered to be confidential. The parties agree that they will
treat this Letter Agreement and the information contained herein as confidential
and will not, without the prior written consent of the other party, disclose
this Letter Agreement or any information contained herein to any other person or
entity except, (1) to those of their respective legal counsel, auditors,
accountants, insurance brokers and other advisers who have a need to know the
information for purposes of interpreting Customer’s rights or interpreting or
performing Customer’s obligations under the Purchase Agreement, subject to such
parties’ written agreements that they will treat the information as
confidential, (2) to a bank for the sole purpose of financing of the purchase of
such Aircraft and subject to such bank’s written agreement that it will treat
the information as confidential, (3) as required by the rules of any stock
market applicable to the parties on condition that the party wishing to make
such disclosure shall first use reasonable efforts to seek relief from the risk
of disclosure to competitors or others with whom either of the parties has
business relations of information which might be detrimental to the interest of
either of the parties, or (4) as may be required by applicable law.
P.A. No.
3323
Aircraft_Performance_Guarantees
BOEING
PROPRIETARY
Xiamen
Airlines
6-1165-CKR-1447
Page
2
|
Very
truly yours,
|
|
|
THE
BOEING COMPANY
|
|
|
By
|
/s/
Xxxxxxxxx X. Xxxxxx
|
|
Its
|
Attorney-In-Fact
|
|
ACCEPTED
AND AGREED TO this
|
|
|
Date:
April 18, 2008
|
|
|
XIAMEN
AIRLINES
|
|
|
By
|
/s/
Xxxx Xxxxx Hua
|
|
Its
|
|
P.A. No.
3323
Aircraft_Performance_Guarantees
BOEING
PROPRIETARY
Attachment
to Letter Agreement
No.
6-1165-CKR-1447
CFM56-7B24
Engines
Page
1
MODEL 737-800 WITH WINGLETS PERFORMANCE
GUARANTEES
FOR
XIAMEN
AIRLINES
|
SECTION
|
CONTENTS
|
||
|
1
|
AIRCRAFT
MODEL APPLICABILITY
|
|
|
|
2
|
FLIGHT
PERFORMANCE
|
|
|
|
3
|
MANUFACTURER’S
EMPTY WEIGHT
|
|
|
|
4
|
AIRCRAFT
CONFIGURATION
|
|
|
|
5
|
GUARANTEE
CONDITIONS
|
|
|
|
6
|
GUARANTEE
COMPLIANCE
|
|
|
|
7
|
EXCLUSIVE
GUARANTEES
|
|
|
P.A. No.
3323
|
|
|
AERO-B-BBA4-M08-0008
|
SS08-0004
|
Attachment
to Letter Agreement
No.
6-1165-CKR-1447
CFM56-7B24
Engines
Page
2
|
1
|
AIRCRAFT
MODEL APPLICABILITY
|
***
|
2
|
FLIGHT
PERFORMANCE
|
|
2.1
|
Takeoff
|
***
|
2.2
|
Landing
|
***
|
2.3
|
Speed
|
***
P.A. No.
3323
AERO-B-BBA4-M08-0008
Attachment
to Letter Agreement
No.
6-1165-CKR-1447
CFM56-7B24
Engines
Page
3
|
2.4
|
Cruise
Fuel Mileage
|
***
|
2.5
|
Mission
|
|
2.5.1
|
Mission
Payload
|
***
|
P.A.
No. 3323
|
|
|
AERO-B-BBA4-M08-0008
|
SS08-0004
|
Attachment
to Letter Agreement
No.
6-1165-CKR-1447
CFM56-7B24
Engines
Page
4
***
Climbout
|
|
Maneuver:
|
***
|
|
|
|
|
|
Climb:
|
***
|
|
|
|
|
|
Cruise:
|
***
|
|
|
|
|
|
Descent:
|
***
|
|
P.A.
No. 3323
|
|
|
AERO-B-BBA4-M08-0008
|
SS08-0004
|
Attachment
to Letter Agreement
No.
6-1165-CKR-1447
CFM56-7B24
Engines
Page
5
***
|
2.5.2
|
Manufacturer’s
Empty Weight Basis
|
The
Manufacturer’s Empty Weight (MEW) derived in Paragraph 2.5.3 is the basis for
the mission guarantee of Paragraph 2.5.1.
|
P.A.
No. 3323
|
|
|
AERO-B-BBA4-M08-0008
|
SS08-0004
|
Attachment
to Letter Agreement
No.
6-1165-CKR-1447
CFM56-7B24
Engines
Page
6
|
2.5.3
737-800 with Winglets Weight Summary - Xiamen Airlines
|
***
|
||||||
|
|
|||||||
|
Standard
Model Specification MEW
|
***
|
||||||
|
Configuration
Specification D019A001, Rev. G
|
|
||||||
|
dated
April 30, 2004
|
***
|
||||||
|
Developmental
Changes to Configuration Specification
|
|
||||||
|
175
Tourist Class Passengers
|
|
||||||
|
CFM56-7
Engines
|
|
||||||
|
156,000
Pounds (70,760 kg.) Maximum Taxi Weight
|
|
||||||
|
6,875
U.S. Gallons (26,024 l.) Fuel Capacity
|
|
||||||
|
|
|||||||
|
Changes
for Xiamen Airlines
|
|
||||||
|
Interior
Change to 170 (8 FC/162 YC) Passengers*
|
***
|
||||||
|
(Ref:
LOPA-378-1573 Rev. C)
|
|
||||||
|
Audio
Entertainment System
|
***
|
||||||
|
Video
Entertainment System
|
***
|
||||||
|
Extended
Range Twin Engine Operations (ETOPS)
|
***
|
||||||
|
Dual
HF / Triple VHF Communication
|
***
|
||||||
|
60
Minute Standby Power
|
***
|
||||||
|
Cargo
Compartment Heavy Gage Linings and Panels (Fwd and Aft)
|
***
|
||||||
|
Winglets
|
***
|
||||||
|
Additional
Change Requests Allowance
|
***
|
||||||
|
|
|||||||
|
Xiamen
Airlines Manufacturer’s Empty Weight (MEW)
|
***
|
||||||
|
|
|||||||
|
Standard
and Operational Items Allowance
|
***
|
||||||
|
(Paragraph
2.5.4)
|
|
||||||
|
|
|||||||
|
Xiamen
Airlines Operational Empty Weight (OEW)
|
***
|
||||||
|
Quantity
|
Pounds
|
Pounds
|
|||||
|
* Seat Weight
Included:
|
***
|
||||||
|
First
Class Double w / 2 in-arm food trays
|
***
|
***
|
|||||
|
Economy
Class Triple w / 3 in-arm food trays
|
***
|
***
|
|||||
|
Economy
Class Triple
|
***
|
***
|
|
P.A.
No. 3323
|
|
|
AERO-B-BBA4-M08-0008
|
SS08-0004
|
Attachment
to Letter Agreement
No.
6-1165-CKR-1447
CFM56-7B24
Engines
Page
7
|
2.5.4
Standard and Operational Items Allowance
|
|||||||
|
Qty
|
Pounds
|
Pounds
|
Pounds
|
||||
|
Standard
Items Allowance
|
***
|
||||||
|
Unusable
Fuel
|
***
|
||||||
|
Oil
|
***
|
||||||
|
Oxygen
Equipment
|
***
|
||||||
|
Passenger
Portable and Masks
|
***
|
***
|
|||||
|
Crew
Masks
|
***
|
***
|
|||||
|
Crew
Goggles
|
***
|
***
|
|||||
|
Miscellaneous
Equipment
|
***
|
||||||
|
Crash
Axe
|
***
|
***
|
|||||
|
Megaphones
|
***
|
***
|
|||||
|
Flashlights
|
***
|
***
|
|||||
|
Smoke
Hoods
|
***
|
***
|
|
||||
|
Galley
Structure & Fixed Inserts
|
***
|
||||||
|
Galley
No. 1
|
***
|
***
|
|||||
|
Galley
No. 2
|
***
|
***
|
|||||
|
Galley
No. 4B
|
***
|
***
|
|||||
|
Operational
Items Allowance
|
|
***
|
|||||
|
Crew
and Crew Baggage
|
***
|
||||||
|
Flight
Crew
|
***
|
||||||
|
Cabin
Crew
|
***
|
||||||
|
Baggage
|
***
|
||||||
|
Navigation
Bags & Manuals
|
***
|
||||||
|
Catering
Allowance & Removable Inserts
|
|
***
|
|||||
|
First
Class
|
***
|
***
|
|||||
|
Economy
Class
|
***
|
***
|
|||||
|
Passenger
Service Equipment
|
***
|
|
***
|
||||
|
Potable
Water - 60 USG
|
***
|
||||||
|
Waste
Tank Disinfectant
|
***
|
||||||
|
Emergency
Equipment
|
***
|
||||||
|
Escape
Slides
|
***
|
***
|
|||||
|
Life
Rafts
|
***
|
***
|
|||||
|
Life
Vests - Flight Crew
|
***
|
***
|
|||||
|
Life
Vests - Cabin Crew and Passengers
|
***
|
***
|
|||||
|
Emergency
Locator Transmitter
|
***
|
***
|
|||||
|
Total
Standard and Operational Items Allowance
|
|
***
|
|
P.A.
No. 3323
|
|
|
AERO-B-BBA4-M08-0008
|
SS08-0004
|
Attachment
to Letter Agreement
No.
6-1165-CKR-1447
CFM56-7B24
Engines
Page
8
|
3
|
MANUFACTURER’S
EMPTY WEIGHT
|
The
Manufacturer’s Empty Weight (MEW) is guaranteed not to exceed the value in
Section 03-60-00 of Detail Specification D019A001XIA38P-1 Revision C, plus one
percent.
|
4
|
AIRCRAFT
CONFIGURATION
|
|
4.1
|
The
guarantees contained in this Attachment are based on the Aircraft
configuration as defined in the Detail Specification D019A001X1A38P-1
Revision C (hereinafter referred to as the Detail Specification).
Appropriate adjustment shall be made for changes in such Detail
Specification approved by the Customer and Boeing or otherwise allowed by
the Purchase Agreement which cause changes to the flight performance
and/or weight and balance of the Aircraft. Such adjustment shall be
accounted for by Boeing in its evidence of compliance with the
guarantees.
|
|
4.2
|
The
guarantee payload of Paragraph 2.5.1 will be adjusted by Boeing for the
effect of the following on MEW and the Manufacturer’s Empty Weight
guarantee of Section 3 will be adjusted by Boeing for the following in its
evidence of compliance with the
guarantees:
|
(1) Changes
to the Detail Specification or any other changes mutually agreed upon between
the Customer and Boeing or otherwise allowed by the Purchase
Agreement.
(2) The
difference between the component weight allowances given in Appendix IV of the
Detail Specification and the actual weights.
|
5
|
GUARANTEE
CONDITIONS
|
|
5.1
|
All
guaranteed performance data are based on the International Standard
Atmosphere (ISA) and specified variations therefrom; altitudes are
pressure altitudes.
|
|
5.2
|
The
FAA Regulations (FAR) referred to in this Attachment are, unless otherwise
specified, the 737-800 Certification Basis regulations specified in the
Type Certificate Data Sheet A16WE, Revision 33, dated March 8,
2002.
|
|
P.A.
No. 3323
|
|
|
AERO-B-BBA4-M08-0008
|
SS08-0004
|
Attachment
to Letter Agreement
No.
6-1165-CKR-1447
CFM56-7B24
Engines
Page
9
|
5.3
|
In
the event a change is made to any law, governmental regulation or
requirement, or in the interpretation of any such law, governmental
regulation or requirement that affects the certification basis for the
Aircraft as described in Paragraph 5.2, and as a result thereof, a change
is made to the configuration and/or the performance of the Aircraft in
order to obtain certification, the guarantees set forth in this Attachment
shall be appropriately modified to reflect any such
change.
|
|
5.4
|
The
takeoff and landing guarantees, and the takeoff portion of the mission
guarantee are based on hard surface, level and dry runways with no wind or
obstacles, no clearway or stopway, 225 mph tires, with Category C brakes
and anti-skid operative, and with the Aircraft center of gravity at the
most forward limit unless otherwise specified. The takeoff performance is
based on no engine bleed for air conditioning or thermal anti-icing and
the Auxiliary Power Unit (APU) turned off unless otherwise specified. The
improved climb performance procedure will be used for takeoff as required.
The landing performance is based on the use of automatic
spoilers.
|
|
5.5
|
The
speed and cruise fuel mileage guarantees, and the climb, cruise and
descent portions of the mission guarantee include allowances for normal
power extraction and engine bleed for normal operation of the air
conditioning system. Normal electrical power extraction shall be defined
as not less than a 50 kilowatts total electrical load. Normal operation of
the air conditioning system shall be defined as pack switches in the
“Auto” position, the temperature control switches in the “Auto” position
that results in a nominal cabin temperature of 75°F, and all air
conditioning systems operating normally. This operation allows a maximum
cabin pressure differential of 8.35 pounds per square inch at higher
altitudes, with a nominal Aircraft cabin ventilation rate of 3,300 cubic
feet per minute including passenger cabin recirculation (nominal
recirculation is 47 percent). The APU is turned off unless otherwise
specified.
|
|
5.6
|
The
speed and cruise fuel mileage guarantees, and the climb, cruise and
descent portions of the mission guarantee are based on an Aircraft center
of gravity location of 26.2 percent of the mean aerodynamic
chord.
|
|
5.7
|
Performance,
where applicable, is based on a fuel Lower Heating Value (LHV) of 18,580
BTU per pound and a fuel density of 6.5 pounds per U.S.
gallon.
|
|
P.A.
No. 3323
|
|
|
AERO-B-BBA4-M08-0008
|
SS08-0004
|
Attachment
to Letter Agreement
No.
6-1165-CKR-1447
CFM56-7B24
Engines
Page
10
|
6
|
GUARANTEE
COMPLIANCE
|
|
6.1
|
Compliance
with the guarantees of Sections 2 and 3 shall be based on the conditions
specified in those sections, the Aircraft configuration of Section 4 and
the guarantee conditions of Section
5.
|
|
6.2
|
Compliance
with the takeoff and landing guarantees and the takeoff portion of the
mission guarantee shall be based on the FAA approved Airplane Flight
Manual for the Model 737-800.
|
|
6.3
|
Compliance
with the speed and cruise fuel mileage guarantees, and the climb, cruise and descent portions of the mission guarantee shall
be established by calculations based on flight test data obtained from an
aircraft in a configuration similar to that defined by the Detail
Specification.
|
|
6.4
|
The
OEW used for compliance with the mission guarantee shall be the actual MEW
plus the Standard and Operational Items Allowance in Paragraph
2.5.4.
|
|
6.5
|
Compliance
with the Manufacturer’s Empty Weight guarantee shall be based on
information in the “Weight and Balance Control and Loading Manual -
Aircraft Report.”
|
|
6.6
|
The
data derived from tests shall be adjusted as required by conventional
methods of correction, interpolation or extrapolation in accordance with
established engineering practices to show compliance with these
guarantees.
|
|
6.7
|
Compliance
shall be based on the performance of the airframe and engines in
combination, and shall not be contingent on the engine meeting its
manufacturer’s performance
specification.
|
|
7
|
EXCLUSIVE
GUARANTEES
|
The only
performance guarantees applicable to the Aircraft are those set forth in this
Attachment.
|
P.A.
No. 3323
|
|
|
AERO-B-BBA4-M08-0008
|
SS08-0084
|
|
The
Boeing Company
|
|
|
X.X.
Xxx 0000
|
|
|
Xxxxxxx,
XX 00000-0000
|
6-1165-CKR-1448
Xiamen
Airlines
00
Xxxxxxx Xxxx
Xxxxxx,
000000
Xxxxxx
Xxxxxxxx
People’s
Republic of China
|
Subject:
|
Promotional
Support
|
|
Reference:
|
Purchase
Agreement No. 3323 (the Purchase Agreement) between The Boeing Company
(Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C aircraft
(the Aircraft)
***
|
|
P.A.
No. 3323
|
|
Promotional_Support
|
BOEING
PROPRIETARY
Xiamen Airlines
6-1165-CKR-1448
Page
2
|
Very
truly yours,
|
|
THE
BOEING COMPANY
|
|
By
|
/s/
Xxxxxxxxx X. Xxxxxx
|
|
Its
|
Attorney-In-Fact
|
|
ACCEPTED
AND AGREED TO this
|
|
|
Date:
April 18, 2008
|
|
|
XIAMEN
AIRLINES
|
|
|
By
|
/s/
Xxxx Xxxxx Hua
|
|
Its
|
P.A. No.
3323
Promotional_Support
BOEING
PROPRIETARY
|
The
Boeing Company
|
|
|
X.X.
Xxx 0000
|
|
|
Xxxxxxx,
XX 00000-0000
|
6-1165-CKR-1449
Xiamen
Airlines
00
Xxxxxxx Xxxx
Xxxxxx,
000000
Xxxxxx
Xxxxxxxx
People’s
Republic of China
|
Subject:
|
Volume
Agreement
|
|
Reference:
|
Purchase
Agreement No. 3323 (the Purchase Agreement) between The Boeing Company
(Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C 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.
1. Volume Agreement
Option.
Boeing
and Customer acknowledge that, in the future, Boeing may enter into a purchase
agreement with China Aviation Supplies Import & Export Corporation (CASC),
or its successor organization, for model 737-700, 737-800 or 737-900ER aircraft
that might otherwise have included Customer’s subject Aircraft (a “Volume
Agreement”). In the event that Boeing enters into a firm and unconditional
Volume Agreement between the effective date of this Purchase Agreement and March
31, 2008, or any mutually agreed extension of this date, and Boeing determines
that such agreement contains business incentives and financial considerations
that, in the aggregate, would be more favorable to Customer than those contained
in this Purchase Agreement, as described in Letter Agreement 3323-08 and
6-1165-CKR-1454 to the Purchase Agreement, then Boeing shall so notify Customer,
and Customer shall have the right to request that Boeing incorporate those more
favorable business incentives and financial considerations into the Purchase
Agreement. It is understood that, if the Customer incorporates the more
favorable business terms from the Volume Agreement as described above, those
terms will be in lieu of all current financial considerations and incentives
under Letter Agreement 3323-08 and 6-1165-CKR-1454 to the Purchase Agreement
referenced above, which Letter Agreements shall thereafter be of no further
force or effect. Further, it is also understood that nothing under this Letter
Agreement will be interpreted to mean that any of the other terms and conditions
of the Volume Agreement with CASC will be applicable to the Purchase
Agreement.
X.X.Xx.
3323
Volume_Agreement
BOEING
PROPRIETARY
Xiamen
Airlines
6-1165-CKR-1449
Page
2
2. Confidential
Treatment.
Boeing
and Customer understand that certain information contained in this Letter
Agreement is considered to be confidential. The parties agree that they will
treat this Letter Agreement and the information contained herein as confidential
and will not, without the prior written consent of the other party, disclose
this Letter Agreement or any information contained herein to any other person or
entity except, (1) to those of their respective legal counsel, auditors,
accountants, insurance brokers and other advisers who have a need to know the
information for purposes of interpreting Customer’s rights or interpreting or
performing Customer’s obligations under the Purchase Agreement, subject to such
parties’ written agreements that they will treat the information as
confidential, (2) to a bank for the sole purpose of financing of the purchase of
such Aircraft and subject to such bank’s written agreement that it will treat
the information as confidential, (3) as required by the rules of any stock
market applicable to the parties on condition that the party wishing to make
such disclosure shall first use reasonable efforts to seek relief from the risk
of disclosure to competitors or others with whom either of the parties has
business relations of information which might be detrimental to the interest of
either of the parties, or (4) as may be required by applicable law.
P.A. No.
3323
Volume_Agreement
BOEING
PROPRIETARY
Xiamen Airlines
6-1165-CKR-1449
Page
3
|
Very
truly yours,
|
|
|
THE
BOEING COMPANY
|
|
|
By
|
/s/
Xxxxxxxxx X. Xxxxxx
|
|
Its
|
Attorney-In-Fact
|
|
ACCEPTED
AND AGREED TO this
|
|
|
Date:
April 18, 2008
|
|
|
XIAMEN
AIRLINES
|
|
|
By
|
/s/
Xxxx Xxxxx Hua
|
|
Its
|
|
P.A. No.
3323
Volume_Agreement
BOEING
PROPRIETARY
|
The
Boeing Company
|
|
|
X.X.
Xxx 0000
|
|
|
Xxxxxxx,
XX 00000-0000
|
6-1165-CKR-1450
Xiamen
Airlines
00
Xxxxxxx Xxxx
Xxxxxx,
000000
Xxxxxx
Xxxxxxxx
People’s
Republic
of China
|
Subject:
|
Payment
Matters
|
|
Reference:
|
Purchase
Agreement No. 3323 (the Purchase Agreement) between The Boeing Company
(Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C 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.
1.
Advance Payments
for the Aircraft.
1.1 Agreed
Deferral. It is understood that Customer’s ability to
make advance payments described in Article 4.2 of the Purchase Agreement may be
impacted due to monetary issues, therefore Boeing agrees that all advance
payments due on the effective date of the Purchase Agreement, as specified in
Article 4.2, and those that shall become due during the time from the effective
date and deferred due date, may be deferred without interest until ten business
days after the effective date of the Purchase Agreement, by which time Customer
will pay all advance payments specified in the Purchase Agreement as being due
on or before that date.
1.2 Advance Payment
Invoices. Boeing will provide invoices to
Customer for all advance payments due pursuant to Article 4.2 of the Purchase
Agreement, at least thirty (30) days prior to the due date thereof.
2.
Payment at Aircraft
Delivery.
Pursuant
to Article 4.4 of the Purchase Agreement, Customer will pay the balance of the
Aircraft Price of each Aircraft at delivery. Boeing will provide the invoices
for such payment at least 14 days prior to Aircraft delivery.
P.A. No.
3323
Payment_Matters
BOEING
PROPRIETARY
Xiamen
Airlines
6-1165-CKR-1450
Page
2
3.
Rescheduling of
Aircraft.
In the
event that Customer is not able to make the advance payments described above by
the tenth business day after the effective date of the Purchase Agreement.
Boeing may reschedule any or all of the Aircraft at any time thereafter as it
deems necessary based on Boeing’s production considerations and constraints,
unless the advance payments for all Aircraft are current in accordance with the
Purchase Agreement. Boeing will give Customer ten days advance notice of any
such Aircraft rescheduling, and will not reschedule such Aircraft if advance
payments on all Aircraft are current prior to the expiration of such ten day
notification period.
4.
Effect of
Aircraft Rescheduling.
If Boeing
reschedules any or all of the Aircraft pursuant to the provisions of 3, above,
the Customer and Boeing will complete a Supplemental Agreement to document the
revised Aircraft delivery schedules within thirty (30) days after the ten day
advance notice is given.
5.
Default
Interest.
***
6.
Alternative
Methodology.
In the
event that circumstances described in paragraph 5, above occur, Customer and
Boeing agree that Customer may exercise an alternative method of compensation to
Boeing. Such alternative method is described below.
6.1 Dollar Day Principal.
***
P.A. No.
3323
Payment_Matters
BOEING
PROPRIETARY
Xiamen
Airlines
6-1165-CKR-1450
Page
3
be
applied such that the acceleration of the advance payment due date shall
minimize the time period for repayment of the delayed payment(s), and recapture
the normal advance payment schedule established by Table 1 of the Purchase
Agreement. The parties recognize that the actual accelerated advance payment
schedule cannot be determined until such time as Customer makes the payment for
the delayed advance payments contemplated by paragraph 5, above.
Boeing
shall establish the accelerated advance payment schedule based upon the above
principal and Customer will make payments in the amounts and on the dates
indicated for the accelerated schedule.
6.2 Default
Procedure. In the event
that Customer fails to make the accelerated advance payments in the amounts and
on the dates established by the parties, or if the parties are unable to agree
on the dates and amounts for the accelerated advance payments, the Customer
shall pay interest as described in paragraph 5, above.
7.
Confidential
Treatment.
Boeing
and Customer understand that certain information contained in this Letter
Agreement is considered to be confidential. The parties agree that they will
treat this Letter Agreement and the information contained herein as confidential
and will not, without the prior written consent of the other party, disclose
this Letter Agreement or any information contained herein to any other person or
entity except, (1) to those of their respective legal counsel, auditors,
accountants, insurance brokers and other advisers who have a need to know the
information for purposes of interpreting Customer’s rights or interpreting or
performing Customer’s obligations under the Purchase Agreement, subject to such
parties’ written agreements that they will treat the information as
confidential, (2) to a bank for the sole purpose of financing of the purchase of
such Aircraft and subject to such bank’s written agreement that it will treat
the information as confidential. (3) as required by the rules of any stock
market applicable to the parties on condition that the party wishing to make
such disclosure shall first use reasonable efforts to seek relief from the risk
of disclosure to competitors or others with whom either of the parties has
business relations of information which might be detrimental to the interest of
either of the parties, or (4) as may be required by applicable law.
P.A. No.
3323
Payment_Matters
BOEING
PROPRIETARY
Xiamen
Airlines
6-1165-CKR-1450
Page
4
|
Very
truly yours,
|
|
|
THE
BOEING COMPANY
|
|
|
By
|
/s/
Xxxxxxxxx X. Xxxxxx
|
|
Its
|
Attorney-In-Fact
|
|
ACCEPTED
AND AGREED TO this
|
|
|
Date: April
18, 2008
|
|
|
XIAMEN
AIRLINES
|
|
|
By
|
/s/
Xxxx Xxxxx Hua
|
|
Its
|
|
P.A. No.
3323
Payment_Matters
BOEING
PROPRIETARY
|
The
Boeing Company
|
|
|
X.X.
Xxx 0000
|
|
|
Xxxxxxx,
XX 00000-0000
|
6-1165-CKR-1451
Xiamen
Airlines
00
Xxxxxxx Xxxx
Xxxxxx,
000000
Xxxxxx
Xxxxxxxx
People’s
Republic of China
|
Subject:
|
Shareholder
Approval
|
|
Reference:
|
Purchase
Agreement No. 3323 (the Purchase Agreement) between The Boeing Company
(Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C 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.
1.
Listing
Matters.
China
Southern Airlines Company Limited (China Southern) is the majority shareholder
of Customer and is a listed issuer of equity securities at The Stock Exchange of
Hong Kong Limited (Stock Exchange). Under the listing rules of the Stock
Exchange, Customer’s purchase of the Aircraft is a transaction classified as a
“very substantial acquisition” for China Southern due to aggregation of
transactions with Boeing. Such classification by the Stock Exchange requires
China Southern to comply with the disclosure and shareholder approval
requirements regarding the purchase of the Aircraft, as described in the listing
rules as noted above.
2. Shareholder
Approval.
As
required by the listing rules of the Stock Exchange, a “very substantial
acquisition transaction” must be approved by shareholders in a general meeting.
Shareholder approval for the purchase by the Customer of the Aircraft will be
obtained, following the process defined under the listing rules, as soon as
practicable after the signing of this Letter Agreement. Customer agrees that it
will advise Boeing of such approval when obtained by providing written or
telegraphic notice on or before June 30, 2008, or as soon thereafter as
practicable.
P.A. No.
3323
Shareholder_Approval
BOEING
PROPRIETARY
Xiamen
Airlines
6-1165-CKR-1451
Page
2
|
Very
truly yours,
|
|
|
THE
BOEING COMPANY
|
|
|
By
|
/s/
Xxxxxxxxx X. Xxxxxx
|
|
Its
|
Attorney-In-Fact
|
|
ACCEPTED
AND AGREED TO this
|
|
|
Date:
April 18, 2008
|
|
|
XIAMEN
AIRLINES
|
|
| By |
/s/
Xxxx Xxxxx Hua
|
|
Its
|
|
P.A. No.
3323
Shareholder_Approval
BOEING
PROPRIETARY
Letter
of Consent
April 17,
2008
|
To:
|
Vice
President - Contracts
|
Boeing
Commercial Airplanes
X.X. Xxx
0000, X/X 00-00
Xxxxxxx,
XX 00000
Ladies
and Gentlemen:
We, China
Southern Air Holding Company, are the controlling shareholder of China Southern
Airlines Company Limited the (the “Joint-stock Corporation”),
hold approximately 50.3% of the total issued share capital of the Joint-stock
Corporation and are entitled to attend and vote at the general meeting of the
Joint-stock Corporation.
We have
been informed that Xiamen Airlines Company Limited, a subsidiary owned as to 60%
by the Joint-stock Corporation, recently entered into an agreement with The
Boeing Company in respect of the purchase by Xiamen Airlines Company Limited of
twenty (20) Model 737-800 aircraft (with engines) from The Boeing Company (the
“Aircraft Purchase
Agreement”) as well as the transactions thereunder. It constitutes a
“very substantial
acquisition” by the Joint-stock Corporation pursuant to the Rules
Governing the Listing of Securities on The Stock Exchange of Hong Kong
Limited.
We hereby
confirm that, other than the indirect interests through our shareholdings in the
Joint-stock Corporation, we do not have any other interests in the transactions
under the Aircraft Purchase Agreement. Moreover, we undertake to attend the
relevant general meeting of the Joint-stock Corporation and to exercise all our
voting rights to approve the Aircraft Purchase Agreement and the transactions
thereunder.
| /s/ Xxx Xxxx Xxxx |
|
China
Southern Air Holding Company
|
|
April 17, 2008
|
|
The
Boeing Company
|
|
|
X.X.
Xxx
0000
|
|
|
Xxxxxxx,
XX
00000-0000
|
6-1165-CKR-1452
Xiamen
Airlines
00
Xxxxxxx Xxxx
Xxxxxx,
000000
Xxxxxx
Xxxxxxxx
People’s
Republic of China
|
Subject:
|
Clarifications
and Understandings
|
|
Reference:
|
Purchase
Agreement No. 3323 (the Purchase Agreement) between The Boeing Company
(Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C 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.
Clarifications and
Understandings. The
following clarifications and understandings pertain to the indicated provisions
of the Purchase Agreement:
1. Article
4, Payment,
Sub-Article 4.2.
This
paragraph provides an explanation of the standard advance payment schedule. For
the avoidance of doubt, advance payments that are due on the first business day
of the month, means a business day in the United States.
2. Article
5, Additional
Terms, Sub-Article 5.7, Public
Announcement.
Notwithstanding
the provisions of Sub-Article 5.7, Boeing and Customer wish to clarify the
understanding of the parties with respect to disclosure of the purchase of the
Aircraft by Customer.
Boeing
will not make a public announcement without written approval by Customer’s
authorized representative. Boeing may disclose certain information concerning
the purchase of the Aircraft to parties as required by law, governmental
regulation or to perform its obligations under the Purchase
Agreement.
P.A. No.
3323
Clarifications_and_Understandings
BOEING PROPRIETARY
Xiamen
Airlines
6-1165-CKR-1452
Page
2
3. Exhibit
A, Aircraft
Configuration,
Notwithstanding
the provisions of Exhibit A, wherein Boeing Detail Specification
D019A00IXIA38P-I Revision TBD dated as of TBD is identified as the configuration
of the Aircraft, nothing shall prevent Customer from reviewing such Detail
Specification. After review, Customer may request that Boeing propose additional
optional features for consideration by Customer. Any changes and optional
features that are agreed upon will be incorporated into Exhibit A of the
Purchase Agreement by written amendment.
The
written amendment contemplated above will also reflect, if applicable, any
changes to Aircraft Performance Guarantees and Aircraft Price that result from
the incorporation of the revised optional features.
4. Exhibit
B, Aircraft Delivery
Requirements and Responsibilities, Paragraph
4., Delivery Actions
by Boeing.
Notwithstanding
the provisions of Exhibit B, subparagraph 4.6, the following provisions shall
instead apply in lieu thereof to all aircraft under the Purchase
Agreement.
4.6 Delivery Papers, Documents
and Data. Boeing will have available
at the time of delivery of the Aircraft certain delivery papers, documents and
data for execution and delivery. If title for the Aircraft will be transferred
to Customer through a Boeing sales subsidiary and if the Aircraft will be
registered with the FAA, Boeing will pre-position in Oklahoma City. Oklahoma,
for filing with the FAA at the time of delivery of the Aircraft an executed
original Form 8050-2, Aircraft Xxxx of Sale, indicating transfer of title to the
Aircraft from Boeing’s sales subsidiary to Customer.
The
documents Boeing will have available will include, but not be limited to, the
following:
|
(i)
|
Aircraft
Xxxx of Sale
|
|
(ii)
|
Export
Certificate of Airworthiness issued by the
FAA
|
|
(iii)
|
Weight
and Balance Manual
|
|
(iv)
|
Engine
Brochure
|
|
(v)
|
Miscellaneous
Brochure
|
|
(vi)
|
Aircraft
Readiness Log
|
|
(vii)
|
Rigging
Brochure
|
|
(viii)
|
APU
Log
|
|
(ix)
|
FAA
Airworthiness Directive Compliance
Record
|
P.A. No.
3323
Clarifications_and_Understandings
BOEING
PROPRIETARY
Xiamen
Airlines
6-1165-CKR-1452
Page
3
5. Exhibit
B, Aircraft Delivery
Requirements and Responsibilities, Paragraph
5., Delivery Actions
by Customer.
Notwithstanding
the provisions of Exhibit B, subparagraph 5.4, the following provisions shall
instead apply in lieu thereof to all aircraft under the Purchase
Agreement.
5.3 TSA Waiver Approval.
Should the Aircraft be exported, a TSA waiver approval is required for the ferry
flight, unless Customer has a TSA approved program. Customer is responsible for
submittal of TSA waiver to the TSA and following up with the TSA for the
approval. To the extent possible, Boeing will assist Customer in obtaining
approval. Customer shall make reasonable efforts to provide a copy of the TSA
waiver approval upon arrival of Customer’s acceptance team at the Boeing
delivery center, and in all instances will provide a copy of an approved TSA
waiver before aircraft flyaway.
6. Letter
Agreement 3217-01, Spare Parts Initial Provisioning.
Notwithstanding
the provisions of Paragraph 5, Substitution for Obsolete Spare Parts,
Sub-Paragraph 5.2, Delivery of Obsolete Spare Parts and Substitutes. Boeing and
the Customer wish to clarify the understanding of Boeing and Customer
obligations when paying the freight charges for the shipment from the Customer
to Boeing of any such obsolete or unusable Spare Part and for the shipment from
Boeing to Customer of any such substitute Spare Part.
Boeing
and Customer agree that the agreement of Boeing to pay for the above freight
charges shall include, in addition to the actual shipping costs, any applicable
agency fees (freight forwarders), Value Added Taxes (VAT), insurance and customs
fees. Customer agrees to provide Boeing with copies of the invoice/xxxxxxxx for
the above costs.
7. Letter
Agreement 3323-07, Seller Purchased Equipment.
The
following clarifications and understandings are provided to inform Customer
about establishment of equipment prices and changes in Boeing’s process of
administering SPE:
A.
The following responsibilites expand those in
subparagraph 2.1 of the letter agreement:
|
|
iv)
|
Negotiation
of pricing is the Customer’s responsibility. Boeing will not negotiate
pricing for Customer’s selections.
|
P.A. No.
3323
Clarifications_and_Understandings
BOEING
PROPRIETARY
Xiamen
Airlines
6-1165-CKR-1452
Page
4
|
|
v)
|
Customer
negotiated pricing for Miscellaneous Emergency Equipment and Avionics must
be separate from the Boeing Purchase Order
process.
|
|
|
■
|
Boeing
will place the purchase orders at the Boeing catalog pricing. The Customer
and supplier(s) will settle the difference between their negotiated
pricing and the catalog pricing after the aircraft delivery invoice is
received, or as set forth in the agreed upon terms and conditions of the
negotiation between Customer and
supplier.
|
B. Notwithstanding
the provisions of Paragraph 4., Changes., of the
letter agreement,
Boeing and the Customer wish to clarify the understanding of when changes may be
made to SPE.
Generally,
after signing of the letter agreement, changes to SPE may be made until ITCM, or
equivalent time frame. After that time, changes to SPE may only be made by and
between Boeing and the suppliers, as set forth in paragraph 4.
8. Letter
Agreement 6-1165-CKR-1446, Liquidated Damages – Non-Excusable
Delay.
The
following clarification and understanding is provided because Customer has very
minimal Buyer Furnished Equipment (BFE):
Notwithstanding
the provisions of the above noted Letter Agreement, Boeing and Customer wish to
further clarify both parties obligations with regard to the disposition of Buyer
Furnished Equipment (BFE) in the event of termination for a Non-Excusable Delay
under paragraph 3., Right of Termination, of the Letter Agreement.
Boeing
may elect, by written notice to Customer within 30 days, to purchase from
Customer any BFE related to the aircraft at the invoice prices paid, or
contracted to be paid, by Customer. In the event Boeing does not elect to
purchase the BFE, Boeing will promptly return the BFE provided by Customer to
the Customer, and will pay for all applicable shipping costs.
9. Letter
Agreement 6-1165-CKR-1450, Payment Matters.
The
following clarification and understanding is provided because of the unique
circumstances related to the date which the Purchase Agreement shall be signed
and the approval of the board of directors of China Southern Airlines Company
Limited:
P.A. No.
3323
Clarifications_and_Understandings
BOEING
PROPRIETARY
Xiamen
Airlines
6-1165-CKR-1452
Page
5
Notwithstanding
the provisions of paragraph 1.1 of the above noted Letter Agreement, Boeing and
Customer agree that all advance payments due on the effective date of the
Purchase Agreement, as specified in Article 4.2, and those that shall become due
during the time from the effective date and deferred due date, may be deferred
without interest until May 5, 2008, by which time Customer will pay all advance
payments specified in the Purchase Agreement as being due on or before that
date.
10.
Confidential
Treatment.
Boeing
and Customer understand that certain information contained in this Letter
Agreement is considered to be confidential. The parties agree that they will
treat this Letter Agreement and the information contained herein as confidential
and will not, without the prior written consent of the other party, disclose
this Letter Agreement or any information contained herein to any other person or
entity except, (1) to those of their respective legal counsel, auditors,
accountants, insurance brokers and other advisers who have a need to know the
information for purposes of interpreting Customer’s rights or interpreting or
performing Customer’s obligations under the Purchase Agreement, subject to such
parties’ written agreements that they will treat the information as
confidential, (2) to a bank for the sole purpose of financing of the purchase of
such Aircraft and subject to such bank’s written agreement that it will treat
the information as confidential, (3) as required by the rules of any stock
market applicable to the parties on condition that the party wishing to make
such disclosure shall first use reasonable efforts to seek relief from the risk
of disclosure to competitors or others with whom either of the parties has
business relations of information which might be detrimental to the interest of
either of the parties, or (4) as may be required by applicable law.
P.A. No.
3323
Clarifications_and_Understandings
BOEING
PROPRIETARY
Xiamen
Airlines
6-1165-CKR-1452
Page
6
|
Very
truly yours,
|
|
|
THE
BOEING COMPANY
|
|
|
By
|
/s/
Xxxxxxxxx X. Xxxxxx
|
| Its |
Attorney-In-Fact
|
|
ACCEPTED
AND AGREED TO this
|
|
|
Date:
April 18, 2008
|
|
|
XIAMEN
AIRLINES
|
|
|
By
|
/s/
Xxxx Xxxxx Hua
|
|
Its
|
|
P.A. No.
3323
Clarifications_and_Understandings
BOEING
PROPRIETARY
|
The
Boeing Company
|
|
|
X.X.
Xxx
0000
|
|
|
Xxxxxxx,
XX
00000-0000
|
6-1165-CKR-1454
Xiamen
Airlines
00
Xxxxxxx Xxxx
Xxxxxx,
000000
Xxxxxx
Xxxxxxxx
People’s
Republic of China
|
Subject:
|
Special
Escalation Program
|
|
Reference:
|
Purchase
Agreement No. 3323 (the Purchase Agreement) between The Boeing Company
(Boeing) and Xiamen Airlines (Customer) relating to Model 737-85C aircraft
(the Aircraft)
|
This
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.
1. Aircraft
Applicability.
The terms
of this Letter Agreement are applicable only to the firm Aircraft included in
Table 1 of the Purchase Agreement at the time of signing, that have scheduled
Delivery Dates during the time period through July 2014 (the Included
Aircraft).
2. Airframe Price
Adjustment.
*
* *
P.A. No.
3323
Special_Escalation_Program
BOEING
PROPRIETARY
Xiamen
Airlines
6-1165-CKR-1454
Page
2
3. Special Escalation Program
Factor.
The
Escalation Factor established in paragraph 2 above will be compared with the
Special Escalation Program Factor for the corresponding delivery month and year
set forth on Attachment 1 hereto.
3.1 If
the Escalation Factor established in paragraph 2 is less than, or equal to, the
Special Escalation Program Factor set forth on Attachment 1, such Escalation
Factor shall be utilized to determine the final Aircraft Price at time of
delivery.
3.2 If
the Escalation Factor established in paragraph 2 is greater than the Special
Escalation Program Factor set forth on Attachment 1, the Special Escalation
Program Factor shall be utilized to determine the final Aircraft Price at time
of delivery.
4. Credit
Memoranda.
All
credit memoranda for the Included Aircraft that are defined in the Purchase
Agreement as being escalated to delivery will be escalated in accordance with
the above terms.
5. Advance Payment Base
Price.
The
Advance Payment Base Price for each Included Aircraft will be calculated
pursuant to ARTICLE 3.2 of the Purchase Agreement.
6. Aircraft Not
Included.
Aircraft
that deliver after the time period set forth in Paragraph 1, above (the Not
Included Aircraft) shall be escalated in accordance with the methodology set
forth in Paragraph 2, above, using actual escalation, except that the starting
point shall be from the July 2014 escalation factor, utilizing either the
Escalation Factor or the Special Escalation Program Factor, that was actually
employed pursuant to Paragraph 3, above. As such, the Not Included Aircraft will
benefit from the Special Escalation Program as set forth above until July 2014,
Escalation subsequent to that time will be in accordance with the standard
escalation provisions of Supplemental Exhibit AE1 of the Purchase
Agreement.
P.A. No.
3323
Special_Escalation_Program
BOEING
PROPRIETARY
Xiamen
Airlines
6-1165-CKR-1454
Page
3
7. Confidential
Treatment.
Customer
understands that the 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 (a) as required by applicable Law, governmental regulation or
judicial process, (b) with the consent of Boeing, (c) to the counsel of
providers of financing in connection with the Aircraft (each a “Finance Party”),
(d) to bank examiners and auditors, (e) to any Finance Party or to any Person
with whom any Finance Party is in good faith conducting negotiations relating to
the possible transfer and sale of such Finance Party’s interest in the relevant
Aircraft, if such entities described in (c), (d) and (e) shall have entered into
an agreement similar to that contained in this Clause whereby such entity agrees
to hold such information confidential.
P.A. No.
3323
Special_Escalation_Program
BOEING
PROPRIETARY
Xiamen
Airlines
6-1165-CKR-1454
Page
4
|
Very
truly yours,
|
|
|
THE
BOEING COMPANY
|
|
|
By
|
/s/
Xxxxxxxxx X. Xxxxxx
|
| Its |
Attorney-In-Fact
|
|
ACCEPTED
AND AGREED TO this
|
|
|
Date:
April 18, 2008
|
|
|
XIAMEN
AIRLINES
|
|
|
By
|
/s/
Xxxx Xxxxx Hua
|
|
Its
|
|
P.A. No.
3323
Special_Escalation_Program
BOEING
PROPRIETARY
Attachment
1 to
6-1165-CKR-1454
SPECIAL ESCALATION PROGRAM
FACTORS
Included
Aircraft with scheduled Delivery Dates:
|
Calendar
Year
|
Jan
|
Feb
|
Mar
|
Apr
|
May
|
Jun
|
Jul
|
Aug
|
Sep
|
Oct
|
Nov
|
Dec
|
|
2012
|
||||||||||||
|
2013
|
***
|
|||||||||||
|
2014
|
Note:
The
Special Escalation Program Factors above reflect an annual rate of escalation of
3.9% per year, starting from July 2007.
P.A. No.
3323
Special_Escalation_Program
BOEING
PROPRIETARY
