Exhibit 10.3
Supplemental Agreement No. 2
to
Purchase Agreement No. 3157
between
The Boeing Company
And
Federal Express Corporation
Relating to Boeing Model 777-FREIGHTER Aircraft
THIS SUPPLEMENTAL AGREEMENT, entered into as of the 14th of July, 2008, by and
between THE BOEING COMPANY, (Boeing), and Federal Express Corporation
(Customer);
W I T N E S S E T H:
WHEREAS, the parties entered into that certain Purchase Agreement No. 3157,
dated November 7, 2006 (as amended and supplemented), relating to the purchase
and sale of certain Boeing Model 777- FREIGHTER aircraft (the Aircraft); and
WHEREAS, Customer desires to reschedule one Aircraft scheduled for delivery in
December 2009 to September 2009;
NOW THEREFORE, in consideration of the mutual covenants herein contained, the
parties hereto agree to supplement the Purchase Agreement as follows:
All capitalized terms used herein and in the Purchase Agreement, and not defined
herein, shall have the same meaning as in the Purchase Agreement.

1.   In order to reschedule the one Aircraft scheduled for delivery in
December 2009 to September 2009, Table 1 to the Purchase Agreement is hereby
deleted and replaced with a new Table 1 which is attached hereto.

2.   As a result of rescheduling the December 2009 Aircraft to September 2009 an
advance payment in the amount of $12,531,300.00 is due at the signing of this
Supplemental Agreement.

 

 

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      Supplemental Agreement 2 to
Purchase Agreement No. 3157   page 2

3.   In order to accommodate Customer’s request that the six (6) month payment
for the December 2009 Aircraft on June 1, 2009, not change, notwithstanding the
fact the delivery has accelerated to September 2009, the Parties agree to the
following;

  A)   The six (6) month prior to delivery payment for the September 2009
Aircraft will be due on June 1, 2009, instead of the standard date of March 2,
2009.     B)   The nine (9) month prior to delivery payment for one of the June
2010 Aircraft will be due on June 1, 2009 instead of the standard date of
September 1, 2009.

EXECUTED as of the day and year first above written.

                      THE BOEING COMPANY       FEDERAL EXPRESS CORPORATION    
 
                   
By:
  /s/ R.C. Nelson
 
      By:   /s/ Phillip C. Blum
 
   
 
  Its: Attorney-In-Fact           Its: Vice President —
      Aircraft Acquisitions/SAO    

 

 

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Table 1 to
Purchase Agreement No. 3157
Aircraft Delivery, Description, Price and Advance Payments
purchase of 15 firm + 15 options

                 
Airframe Model/MTOW:
  777-Freighter   766000 pounds  
Engine Model/Thrust:
  GE90-110B1L   110000 pounds  
Airframe Price:
          $ 231,629,000  
Optional Features:
          $ 3,235,800  
 
             
Sub-Total of Airframe and Features:
          $ 234,864,800  
Engine Price (Per Aircraft):
          $ 0  
Aircraft Basic Price (Excluding BFE/SPE):
          $ 234,864,800  
 
             
Buyer Furnished Equipment (BFE) Estimate:
          $ 1,950,000  
Seller Purchased Equipment (SPE) Estimate:
          $ 0  
 
               
Refundable Deposit/Aircraft at Proposal Accept:
          $ 230,000  

                 
Detail Specification:
  D019W007-NEW (7/24/2006)          
Airframe Price Base Year/Escalation Formula:
  Jul-06   ECI-MFG/CPI  
Engine Price Base Year/Escalation Formula:
    N/A       N/A    
Airframe Escalation Data:
               
Base Year Index (ECI):
    180.3          
Base Year Index (CPI):
    195.4          

                                                                      Escalation
    Escalation Estimate     Advance Payment Per Aircraft (Amts. Due/Mos. Prior
to Delivery):   Delivery   Number of     Factor     Adv Payment Base     At
Signing     24 Mos.     21/18/15/12/9/6 Mos.     Total   Date   Aircraft    
(Airframe)     Price Per A/P     1%     4%     5%     35%  
Jul-2009
    1       1.0845     $ 254,711,000     $ 2,317,110     $ 10,188,440     $
12,735,550     $ 89,148,850  
Sep-2009
    1       1.0896     $ 255,909,000     $ 2,329,090     $ 10,236,360     $
12,795,450     $ 89,568,150  
Oct-2009
    1       1.0918     $ 256,425,000     $ 2,334,250     $ 10,257,000     $
12,821,250     $ 89,748,750  
Nov-2009
    1       1.0939     $ 256,919,000     $ 2,339,190     $ 10,276,760     $
12,845,950     $ 89,921,650  
Jun-2010
    2       1.1136     $ 261,545,000     $ 2,385,450     $ 10,461,800     $
13,077,250     $ 91,540,750  
Jul-2010
    1       1.1158     $ 262,062,000     $ 2,390,620     $ 10,482,480     $
13,103,100     $ 91,721,700  
Aug-2010
    1       1.1189     $ 262,790,000     $ 2,397,900     $ 10,511,600     $
13,139,500     $ 91,976,500  
Sep-2010
    1       1.121     $ 263,283,000     $ 2,402,830     $ 10,531,320     $
13,164,150     $ 92,149,050  
Oct-2010
    1       1.1231     $ 263,777,000     $ 2,407,770     $ 10,551,080     $
13,188,850     $ 92,321,950  
Nov-2010
    1       1.125     $ 264,223,000     $ 2,412,230     $ 10,568,920     $
13,211,150     $ 92,478,050  
Dec-2010
    1       1.1281     $ 264,951,000     $ 2,419,510     $ 10,598,040     $
13,247,550     $ 92,732,850  
Jan-2011
    1       1.1314     $ 265,726,000     $ 2,427,260     $ 10,629,040     $
13,286,300     $ 93,004,100  
Feb-2011
    1       1.1348     $ 266,525,000     $ 2,435,250     $ 10,661,000     $
13,326,250     $ 93,283,750  
Jun-2011
    1       1.1456     $ 269,061,000     $ 2,460,610     $ 10,762,440     $
13,453,050     $ 94,171,350  

                  Supplemental Agreement #2
Page 1

 

 

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Attachment to
Letter 6-1162-RCN-1789
Option Aircraft Delivery, Description, Price and Advance Payments
purchase of 15 firm + 15 options

                 
Airframe Model/MTOW:
  777-Freighter   766000 pounds  
Engine Model/Thrust:
  GE90-110B1L   110000 pounds  
Airframe Price:
          $ 231,629,000  
Optional Features:
          $ 3,235,800  
 
             
Sub-Total of Airframe and Features:
          $ 234,864,800  
Engine Price (Per Aircraft):
          $ 0  
Aircraft Basic Price (Excluding BFE/SPE):
          $ 234,864,800  
 
             
Buyer Furnished Equipment (BFE) Estimate:
          $ 1,950,000  
Seller Purchased Equipment (SPE) Estimate:
          $ 0    
Non-Refundable Deposit/Aircraft at Def Agreement:
          $ 1,925,000  

                 
Detail Specification:
  D019W007-NEW (7/24/2006)          
Airframe Price Base Year/Escalation Formula:
  Jul-06     ECI-MFG/CPI  
Engine Price Base Year/Escalation Formula:
    N/A       N/A  
 
               
Airframe Escalation Data:
               
Base Year Index (ECI):
    180.3          
Base Year Index (CPI):
    195.4          

                                                                      Escalation
    Escalation Estimate     Advance Payment Per Aircraft (Amts. Due/Mos. Prior
to Delivery):   Delivery   Number of     Factor     Adv Payment Base     At
Signing     24 Mos.     21/18/15/12/9/6 Mos.     Total   Date   Aircraft    
(Airframe)     Price Per A/P     1%     4%     5%     35%  
Aug-2011
    2       1.1509     $ 270,306,000     $ 778,060     $ 10,812,240     $
13,515,300     $ 94,607,100  
Nov-2011
    2       1.1578     $ 271,926,000     $ 794,260     $ 10,877,040     $
13,596,300     $ 95,174,100  
Feb-2012
    1       1.168     $ 274,322,000     $ 818,220     $ 10,972,880     $
13,716,100     $ 96,012,700  
May-2012
    1       1.1766     $ 276,342,000     $ 838,420     $ 11,053,680     $
13,817,100     $ 96,719,700  
Aug-2012
    1       1.1847     $ 278,244,000     $ 857,440     $ 11,129,760     $
13,912,200     $ 97,385,400  
Nov-2012
    2       1.1914     $ 279,818,000     $ 873,180     $ 11,192,720     $
13,990,900     $ 97,936,300  
Feb-2013
    1       1.2034     $ 282,636,000     $ 901,360     $ 11,305,440     $
14,131,800     $ 98,922,600  
May-2013
    1       1.2117     $ 284,586,000     $ 920,860     $ 11,383,440     $
14,229,300     $ 99,605,100  
Aug-2013
    2       1.2197     $ 286,465,000     $ 939,650     $ 11,458,600     $
14,323,250     $ 100,262,750  
Nov-2013
    1       1.2268     $ 288,132,000     $ 956,320     $ 11,525,280     $
14,406,600     $ 100,846,200  
Feb-2014
    1       1.238     $ 290,763,000     $ 982,630     $ 11,630,520     $
14,538,150     $ 101,767,050  

          Supplemental Agreement #1
Page 2