Formula. The number of points change in the CPI during a measurement period, as limited by paragraph (d), shall be converted into cents on the basis of one cent equals 0.3 full points. (By "0.3 full points" it is intended that any remainder of 0.1 point or 0.2 point of change after the conversion shall not be counted.) The cost-of-living allowancein effecton December 31, 2000 shall be adjusted (increased or decreased) effective January 1, 2001 by the whole number of cents produced by dividing by 0.3 the number of points (including tenths of points) change, as limited by paragraph (d), in the CPI during the applicable measurement period. Any residual tenths of a point resulting from such division shall be dropped. The result of such division shall be added to the amount of the cost-of-living allowance in effect on December 31, 2000 if the CPI shall have been higher at the end than at the beginning of the measurement period, and subtracted therefrom only if the index shall have been lower at the end than at the beginning of the measurement period and then, only, to the extent that the allowance remains at zero or above. The same procedure shall be followed in applying subsequent adjustments.

Formula. Airframe and Optional Featuresprice adjustments (Airframe Price Adjustment) are used to allow prices to be stated in current year dollars at the signing ofthis Purchase Agreement and to adjust the amount to be paidby Customerat delivery for the effects of economic fluctuation. The Airframe Price Adjustment will be determined at the timeof Aircraft delivery in accordance with the following formula: Pa = (P+B)(L + M) - P Where: Pa = Airframe Price Adjustment. (For Model 717-200, 737-600, 737-700, 737-800 and 737-900, the Airframe Price includes the Engine Price at its basic thrust level.) L = .65 x ( ECI ----- ECIb )where ECIb is the base year index (as set forth in Table 1 of this Purchase Agreement) M = .35 x ( ICI ----- ICIb )where ICIb is the base year index (as set forth in Table 1 of this Purchase Agreement) P = Airframe Price plus Optional Features Price (as set forth in Table 1 of this Purchase Agreement). B = 0.005 x (N/12) x (P)where N is the calendar month and year of scheduled Aircraft delivery minus the calendar month and year of the Base Price Year, both as shown in Table 1 of this Purchase Agreement. ECI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics "Employment Cost Index for workers in aerospace manufacturing - Wages and Salaries" (ECI code 3721W), calculated by establishing a three-month arithmetic average value (expressed as a decimal and rounded to the nearest tenth) using the values for the fifth, sixth and seventh months prior to the month of scheduled delivery of the applicable Aircraft. As the Employment Cost Index values are only released on a quarterly basis, the value released for the month of March will be used for the months of January and February; the value for June used for April and May; the value for September used for July and August; and the value for December used for October and November. ICI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics "Producer Prices and Price Index - Industrial Commodities Index ", calculated as a 3-month arithmetic average of the released monthly values (expressed as a decimal and rounded to the nearest tenth) using the values for the 5th, 6th and 7th months prior to the month of scheduled delivery of the applicable Aircraft. As an example, for an Aircraft scheduled to be delivered in the month of January, the months June, July and August of the preceding year will be utilized in determining the value of ECI and ICI.

Formula. An Employee's annual leave accrual shall be based upon a fraction of an hour accrual for each of the standard annual work hours schedule (e.g. 2080 hours for a 40 hour per week employee) as shown below in column 2: Column 1 Column 2 Column 3 Column 4 Years of Hourly Monthly Annual Continuous Accrual Accrual Accrual Service 0 thru 5 .0500 hrs. 8.67 hrs. 104 hrs. 6 thru 10 .0615 hrs. 10.67 hrs. 128 hrs. 11 thru 15 .0731 hrs. 12.67 hrs. 152 hrs. 16 thru 20 .0923 hrs. 16 hrs. 192 hrs. 21 thru 25 .1000 hrs. 17.33 hrs. 208 hrs. Over 25 years .104 hrs. 18.03hrs. 216 hrs. MAXIMUM ACCRUAL ALLOWABLE: Effective upon the signing of the Agreement, the maximum accrual rate shall be two and a half times the annual accrual rate in hours for employees with 0 thru 15 years of continuous service. The maximum accrual rate shall be two and three quarters times the annual accrual rate in hours, for employees with 16 thru 25+ years of continuous service.

Formula. The Aircraft Price Adjustment will be determined at the time of Aircraft deliveryin accordance with the following formula: Pa = (P)(L + M - 1) Where: Pa = Aircraft Price Adjustment. L = .65 x ECI 130.1 M = .35 x ICI 123.6 P = Aircraft Basic Price (as set forth in Article 3.2 of this Agreement). ECI = A value using the "Employment Cost Index for workers in aerospace manufacturing" (aircraft manufacturing, standard industrial classification code 3721, compensation, base month and year June 1989 = 100), as released by the Bureau of Labor Statistics, U.S. Department of Labor on a quarterly basis for the months of March, June, September and December, calculated as follows: A three-month arithmetic average value (expressed as a decimal and rounded to the nearest tenth) will be determined using the months set forth in the table below for the applicable Aircraft, with the released Employment Cost Index value described above for the month of March also being used for the months of January and February; the value for June also used for April and May; the value for September also used for July and August; and the value for December also used for October and November. ICI = The three-month arithmetic average of the released monthly values for the Industrial Commodities Index as set forth in the "Producer Prices and Price Index" (Base Year 1982 = 100) K/WPA Attachment C to 6-1162-JDR-426 Page 3 as released by the Bureau of Labor Statistics, U.S. Department of Labor values (expressed as a decimal and rounded to the nearest tenth) for the months set forth in the table below for the applicable Aircraft. In determining the value of L, the ratio of ECI divided by 130.1 will be expressed as a decimal rounded to the nearest ten-thousandth and then multiplied by .65 with the resulting value also expressed as a decimal and rounded to the nearest ten-thousandth. In determining the value of M, the ratio of ICI divided by 123.6 will be expressed as a decimal rounded to the nearest ten-thousandth and then multiplied by .35 with the resulting value also expressed as a decimal and rounded to the nearest ten-thousandth. Months to be Utilized Month of Scheduled in Determining the Aircraft Delivery Value of ECI and ICI ------------------ -------------------- January June B, July B, Aug. B February July B, Aug. B, Sept. B March Aug. B, Sept. B, Oct. B April Sept. B, Oct. B, Nov. B May Oct. B, Nov. B, Dec. B June Nov. B, Dec. B, Jan. D July Dec. B, Jan. D, Feb. D August Jan. D, Feb. D, M...

Formula. Airframe and Optional Featuresprice adjustments (Airframe Price Adjustment) are used to allow prices to be stated in current year dollars at the signing ofthis Purchase Agreement and to adjust the amount to be paidby Customerat delivery for the effects of economic fluctuation. The Airframe Price Adjustment will be determined at the time of Aircraft deliveryin accordance with the following formula: Pa = (P) (L + M) - P Where: Pa = Airframe Price Adjustment. L = [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSIONPURSUANT TO AREQUEST FOR CONFIDENTIAL TREATMENT] x ( ECI ECIb) where ECIb is the base year Index (as set forth in Table 1 of this Purchase Agreement) M = [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] x ( CPI CPIb ) where CPIb is the base year index(as set forth in Table 1 of this Purchase Agreement) P = Airframe Price plus Optional Features Price (as set forth in Table 1 of this Purchase Agreement). ECI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT], calculated by establishing a [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] arithmetic average value (expressed as a decimal and rounded to the nearest tenth) using the values for the [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] months prior to the month of scheduled delivery of the applicable Aircraft. As the [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT] values are only released on a quarterly basis, the value released for the month of March will be used for the months of January and February; the value for June used for April and May; the value for September used for July and August; and the value for December used for October and November. CPI is a value determined using the U.S. Department of Labor, Bureau of Labor Statistics [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT], calcula...