MORTGAGE AND SECURITY AGREEMENT SUPPLEMENT NO. 1

MORTGAGE AND SECURITY AGREEMENT SUPPLEMENT NO. 1

MORTGAGE AND SECURITY AGREEMENT SUPPLEMENT NO. 1, dated March 30, 2021 (this “Mortgage Supplement”) is made between SOUTHWEST AIRLINES CO. (the “Grantor”), and JPMORGAN CHASE BANK, N.A. acting as an administrative agent (in such capacity, “Collateral Agent”).

W I T N E S S E T H:

WHEREAS, all capitalized terms used and not otherwise defined herein shall have the respective meanings set forth or referred to in Article 1 of that certain the Mortgage and Security Agreement, dated as of March 30, 2020 (the “Mortgage”), between the Grantor and the Collateral Agent, recorded by the FAA on May 13, 2020, and assigned conveyance number MC036889;

WHEREAS; the parties entered into the Mortgage pursuant to that certain Revolving Credit Facility Agreement, dated as of August 3, 2016, as amended by First Amendment to Revolving Credit Facility Agreement dated as of March 30, 2020 (as such agreements may be amended, restated, amended and restated, supplemented or otherwise modified, renewed or replaced from time to time, collectively, the “Credit Agreement”), among the Grantor, JPMorgan Chase Bank, N.A., and Citibank, N.A., as co-administrative agents (collectively, the “Administrative Agent”) for the financial institutions party thereto (the “Banks”), the Banks, and other parties identified therein; and

WHEREAS, the Mortgage provides for the execution and delivery of supplements thereto for purposes of specifically subjecting to the Lien of the Mortgage certain airframes and/or engines therein described.

NOW, THEREFORE, to secure the prompt and complete payment and performance when due of the Obligations of the Grantor under the Credit Agreement and each of the other Loan Papers, to secure the performance and observance by the Grantor of all the agreements, covenants and provisions contained in the Mortgage and in the other Loan Papers to which it is a party for the benefit of the Secured Parties, and for the uses and purposes and subject to the terms and provisions hereof, and in consideration of the premises and of the covenants herein contained, and of other good and valuable consideration the receipt and adequacy whereof are hereby acknowledged, the Grantor has granted, bargained, sold, assigned, transferred, conveyed, mortgaged, pledged and confirmed, and does hereby grant, bargain, sell, assign, transfer, convey, mortgage, pledge and confirm, unto the Collateral Agent, its successors and permitted assigns, for the security and benefit of the Secured Parties, a first priority continuing security interest (and, in the case of each airframe and each engine described in Annex A hereto, an International Interest) in and first priority mortgage Lien, in each case, subject to Permitted Liens, on all estate, right, title and interest of the Grantor in and to the airframes and engines described in Annex A hereto, whether or not any such engine shall be installed in or attached to any airframe described in Annex A hereto or any other airframe, together with all Parts of whatever nature relating thereto, and all additions, improvements, accessions and accumulations with respect to any of the foregoing, and all flight records, logs, manuals, maintenance data and inspection, modification and overhaul records and any other related records that are required to be maintained by regulations of the FAA or other Governmental Authority with respect to any of the foregoing (as may be required to be maintained by the Grantor’s FAA approved maintenance program) and any Aircraft Documents related to any such airframe or engine.

TO HAVE AND TO HOLD all and singular the aforesaid property unto the Collateral Agent, its respective successors and permitted assigns, in trust for the benefit and security of the Secured Parties for the uses and purposes, subject to the terms and provisions set forth in the Mortgage.

This Mortgage Supplement shall be construed as supplemental to the Mortgage and shall form a part thereof, and the Mortgage is hereby incorporated by reference herein and is hereby ratified, approved and confirmed. Each of airframes and engines described in Annex A hereto shall be added to Exhibit A to the Mortgage and shall constitute an “Airframe” and an “Engine”, as applicable, under the Mortgage, unless and until such airframe or such engine is released from the Lien of the Mortgage in accordance with the terms thereof.

This Mortgage Supplement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

THIS MORTGAGE SUPPLEMENT HAS BEEN DELIVERED IN THE STATE OF NEW YORK AND THIS MORTGAGE SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES

4835-3235-5039v.7 12479-82

UNDER THIS MORTGAGE SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

4835-3235-5039v.7 12479-82

IN WITNESS WHEREOF, the Grantor and the Collateral Agent have caused this Mortgage and Security Agreement Supplement No. 1 to be duly executed by their respective officers thereunto duly authorized.

SOUTHWEST AIRLINES CO., as Grantor

By:    /s/ Xxxxx Xxxxxx    

    Name: Xxxxx Xxxxxx

    Title: SVP, Finance

JPMORGAN CHASE BANK, N.A., as Collateral Agent

By:    /s/ Xxxxxxxx Xxxxxxxx    

Name: Xxxxxxxx Caviness

Title: Executive Director

Signature Page to Mortgage and Security Agreement Supplement No. 1

4835-3235-5039v.7 12479-82

Annex A

to Mortgage and Security Agreement Supplement No. 1

Airframes and Engines

			Airframe Make			Airframe Model			Airframe MSN			U.S. Reg. Number			Engine Manufacturer			Engine Model			Engine MSN 1			Engine MSN 2
1			Boeing			737-7H4			36913			N943WN			CFM International			CFM56-7B22E			896468			802895
2			Boeing			737-7H4			36659			N944WN			CFM International			CFM56-7B22E			896402			803888
3			Boeing			737-7H4			36660			N945WN			CFM International			CFM56-7B22E			897306			802953
4			Boeing			737-7H4			36918			N946WN			CFM International			CFM56-7B22E			804107			804108
5			Boeing			737-7H4			36924			N947WN			CFM International			CFM56-7B22E			896235			804191
6			Boeing			737-7H4			36662			N948WN			CFM International			CFM56-7B22E			804203			896240
7			Boeing			737-7H4			36663			N949WN			CFM International			CFM56-7B22E			896467			804322
8			Boeing			737-7H4			36664			N950WN			CFM International			CFM56-7B22E			804336			896389
9			Boeing			737-7H4			36665			N951WN			CFM International			CFM56-7B22E			805301			804303
10			Boeing			737-7BD			36726			N555LV			CFM International			CFM56-7B22E			804725			805809
11			Boeing			737-7H4			36671			N955WN			CFM International			CFM56-7B22E			804823			804844
12			Boeing			737-7BD			33936			N556WN			CFM International			CFM56-7B22E			804863			804885
13			Boeing			737-7H4			36672			N956WN			CFM International			CFM56-7B22E			804897			804899
14			Boeing			737-7H4			41528			N957WN			CFM International			CFM56-7B22E			805933			804955
15			Boeing			737-7H4			36673			N958WN			CFM International			CFM56-7B22E			805936			804960
16			Boeing			737-7H4			36674			N959WN			CFM International			CFM56-7B22E			804908			960139
17			Boeing			737-7H4			36675			N960WN			CFM International			CFM56-7B22E			960180			960182
18			Boeing			737-7H4			36962			N961WN			CFM International			CFM56-7B22E			961177			960192
19			Boeing			737-7H4			36963			N962WN			CFM International			CFM56-7B22E			960213			804223
20			Boeing			737-7H4			36676			N963WN			CFM International			CFM56-7B22E			804278			805295
21			Boeing			737-7H4			36965			N964WN			CFM International			CFM56-7B22E			960259			960266
22			Boeing			737-7H4			36677			N965WN			CFM International			CFM56-7B22E			960280			960292
23			Boeing			737-7H4			36966			N966WN			CFM International			CFM56-7B22E			960282			960284
24			Boeing			737-7H4			36967			N967WN			CFM International			CFM56-7B22E			960275			960329

(EACH OF WHICH ENGINES DESCRIBED ABOVE HAVING AT LEAST 550 RATED TAKEOFF HORSEPOWER OR THE EQUIVALENT THEREOF)

4835-3235-5039v.7 12479-82

SCHEDULE II

POOL ASSETS

Airframes and Engines

			Airframe Make			Airframe Model			U.S. Reg. Number			Airframe MSN			Engine Manufacturer			Engine Model			Engine MSN 1			Engine MSN 2
1			Boeing			737-8H4			N8635F			60083			CFM International			CFM56-7B27E/F			658992			658949
2			Boeing			737-8H4			N8634A			42522			CFM International			CFM56-7B27E/F			658985			658982
3			Boeing			737-8H4			N8633A			36905			CFM International			CFM56-7B27E/F			658937			658892
4			Boeing			737-8H4			N8632A			60082			CFM International			CFM56-7B27E/F			658893			658891
5			Boeing			737-8H4			N8631A			42385			CFM International			CFM56-7B27E/F			657908			658873
6			Boeing			737-8H4			N8623F			36731			CFM International			CFM56-7B27E/F			658491			658488
7			Boeing			737-8H4			N8619F			33939			CFM International			CFM56-7B27E/F			658361			658359
8			Boeing			737-8H4			N8620H			42526			CFM International			CFM56-7B27E/F			658371			658351
9			Boeing			737-8H4			N8618N			36915			CFM International			CFM56-7B27E/F			658355			658354
10			Boeing			737-8H4			N8617E			36912			CFM International			CFM56-7B27E/F			658280			658279
11			Boeing			737-8H4			N8616C			36914			CFM International			CFM56-7B27E/F			658267			658257
12			Boeing			737-8H4			N8615E			36933			CFM International			CFM56-7B27E/F			962655			658223
13			Boeing			737-8H4			N8614M			36908			CFM International			CFM56-7B27E/F			962723			962719
14			Boeing			737-8H4			N8613K			36998			CFM International			CFM56-7B27E/F			963686			962683
15			Boeing			737-8H4			N8605E			36891			CFM International			CFM56-7B27E/F			962478			963475
16			Boeing			737-8H4			N8329B			37006			CFM International			CFM56-7B27E/F			962467			962465
17			Boeing			737-8H4			N8328A			38818			CFM International			CFM56-7B27E/F			962456			962448
18			Boeing			737-8H4			N8327A			37009			CFM International			CFM56-7B27E/F			962411			962410
19			Boeing			737-8H4			N8326F			35969			CFM International			CFM56-7B27E/F			962416			962415
20			Boeing			737-8H4			N8325D			37003			CFM International			CFM56-7B27E/F			962402			962401
21			Boeing			737-7H4			N954WN			36669			CFM International			CFM56-7B24/3			804732			804718
22			Boeing			737-7H4			N953WN			36668			CFM International			CFM56-7B24/3			804651			804507
23			Boeing			737-7H4			N952WN			36667			CFM International			CFM56-7B24/3			804571			804568
24			Boeing			737-7BD			N7737E			33929			CFM International			CFM56-7B20			894174			894335
25			Boeing			737-7BD			N7736A			35109			CFM International			CFM56-7B20			894344			890882
26			Boeing			737-7H4			N258WN			32516			CFM International			CFM56-7B24			894248			894154
27			Boeing			737-7H4			N257WN			32515			CFM International			CFM56-7B24			894221			892867
28			Boeing			737-7H4			N256WN			32514			CFM International			CFM56-7B24			894216			894200
29			Boeing			737-7H4			N255WN			32513			CFM International			CFM56-7B24			894198			894197
30			Boeing			737-7H4			N254WN			32512			CFM International			CFM56-7B24			894173			894172
31			Boeing			737-7H4			N253WN			32511			CFM International			CFM56-7B24			895150			894101
32			Boeing			737-7H4			N252WN			34973			CFM International			CFM56-7B24			894140			894139
33			Boeing			737-7H4			N251WN			32510			CFM International			CFM56-7B24			894136			894135
34			Boeing			737-7H4			N250WN			34972			CFM International			CFM56-7B24			894122			892987
35			Boeing			737-7H4			N249WN			34951			CFM International			CFM56-7B24			892993			892992
36			Boeing			737-7H4			N247WN			32508			CFM International			CFM56-7B24			892958			892957
00			Xxxxxx			000-0X0			X000XX			32507			CFM International			CFM56-7B24			892950			892946
38			Boeing			737-7H4			N245WN			32506			CFM International			CFM56-7B24			892943			892942
39			Boeing			737-7H4			N244WN			34864			CFM International			CFM56-7B24			874962			892930
40			Boeing			737-7H4			N239WN			34714			CFM International			CFM56-7B24			892885			892884
41			Boeing			737-7H4			N238WN			34713			CFM International			CFM56-7B24			892396			892284
42			Boeing			737-7H4			N236WN			34631			CFM International			CFM56-7B24			892838			892835

SCHEDULE II - 1

43			Boeing			737-7H4			N235WN			34630			CFM International			CFM56-7B24			893784			892813
44			Boeing			737-7H4			N234WN			32502			CFM International			CFM56-7B24			892790			892776
00			Xxxxxx			000-0X0			X000XX			32501			CFM International			CFM56-7B24			893759			893752
46			Boeing			737-7BD			N7720F			33922			CFM International			CFM56-7B20			892655			892654
47			Boeing			737-7H4			N228WN			32496			CFM International			CFM56-7B24			892606			892605
48			Boeing			737-7H4			N222WN			34290			CFM International			CFM56-7B24			892526			892525
49			Boeing			737-7BD			N7715E			33921			CFM International			CFM56-7B20			893511			893510
50			Boeing			737-7H4			N221WN			34259			CFM International			CFM56-7B24			892516			892515
51			Boeing			737-752			N7835A			34294			CFM International			CFM56-7B22			892486			893127
52			Boeing			737-7H4			N218WN			32489			CFM International			CFM56-7B24			892439			892438
53			Boeing			737-7H4			N217JC			34232			CFM International			CFM56-7B24			892429			892428
54			Boeing			737-7BD			N7713A			33919			CFM International			CFM56-7B20			892416			892415
55			Boeing			737-7H4			N214WN			32486			CFM International			CFM56-7B24			892183			892182
56			Boeing			737-7H4			N215WN			32487			CFM International			CFM56-7B24			893199			893194
57			Boeing			737-7H4			N213WN			34217			CFM International			CFM56-7B24			892217			892212
58			Boeing			737-7H4			N212WN			32485			CFM International			CFM56-7B24			892201			892195
59			Boeing			737-7H4			36913			N943WN			CFM International			CFM56-7B22E			896468			802895
60			Boeing			737-7H4			36659			N944WN			CFM International			CFM56-7B22E			896402			803888
61			Boeing			737-7H4			36660			N945WN			CFM International			CFM56-7B22E			897306			802953
62			Boeing			737-7H4			36918			N946WN			CFM International			CFM56-7B22E			804107			804108
63			Boeing			737-7H4			36924			N947WN			CFM International			CFM56-7B22E			896235			804191
64			Boeing			737-7H4			36662			N948WN			CFM International			CFM56-7B22E			804203			896240
65			Boeing			737-7H4			36663			N949WN			CFM International			CFM56-7B22E			896467			804322
66			Boeing			737-7H4			36664			N950WN			CFM International			CFM56-7B22E			804336			896389
67			Boeing			737-7H4			36665			N951WN			CFM International			CFM56-7B22E			805301			804303
68			Boeing			737-7BD			36726			N555LV			CFM International			CFM56-7B22E			804725			805809
69			Boeing			737-7H4			36671			N955WN			CFM International			CFM56-7B22E			804823			804844
70			Boeing			737-7BD			33936			N556WN			CFM International			CFM56-7B22E			804863			804885
71			Boeing			737-7H4			36672			N956WN			CFM International			CFM56-7B22E			804897			804899
72			Boeing			737-7H4			41528			N957WN			CFM International			CFM56-7B22E			805933			804955
73			Boeing			737-7H4			36673			N958WN			CFM International			CFM56-7B22E			805936			804960
74			Boeing			737-7H4			36674			N959WN			CFM International			CFM56-7B22E			804908			960139
75			Boeing			737-7H4			36675			N960WN			CFM International			CFM56-7B22E			960180			960182
76			Boeing			737-7H4			36962			N961WN			CFM International			CFM56-7B22E			961177			960192
77			Boeing			737-7H4			36963			N962WN			CFM International			CFM56-7B22E			960213			804223
78			Boeing			737-7H4			36676			N963WN			CFM International			CFM56-7B22E			804278			805295
79			Boeing			737-7H4			36965			N964WN			CFM International			CFM56-7B22E			960259			960266
80			Boeing			737-7H4			36677			N965WN			CFM International			CFM56-7B22E			960280			960292
81			Boeing			737-7H4			36966			N966WN			CFM International			CFM56-7B22E			960282			960284
82			Boeing			737-7H4			36967			N967WN			CFM International			CFM56-7B22E			960275			960329

(EACH OF WHICH ENGINES DESCRIBED ABOVE HAVING AT LEAST 550 RATED TAKEOFF HORSEPOWER OR THE EQUIVALENT THEREOF)

SCHEDULE II - 2