Exhibit 10

 

EXECUTION COPY

 

EIGHTH AMENDED AND RESTATED CREDIT AGREEMENT

(364-DAY FACILITY)

 

Dated as of April 22, 2004

 

UNITED PARCEL SERVICE, INC., a Delaware corporation (the ”Borrower”), the banks,
financial institutions and other institutional lenders party hereto
(collectively, the “Lenders”), Citibank, N.A., as syndication agent and
administrative agent (the “Administrative Agent”) for the Lenders, Bank of
America, N.A. and Bank One, NA as co-documentation agents (the “Co-Documentation
Agents”) for the Lenders, hereby agree as follows:

 

PRELIMINARY STATEMENTS

 

(1)           The Borrower is party to a Seventh Amended and Restated Credit
Agreement (364-Day Facility) dated as of April 24, 2003 (as amended,
supplemented or otherwise modified from time to time to, but not including, the
date hereof, the “Existing Credit Agreement”) with the banks, financial
institutions and other institutional lenders party thereto (the “Existing
Lenders”), Citibank, N.A., as Administrative Agent and as Syndication Agent for
the Existing Lenders, Bank of America, N.A., and Bank One, NA, as
Co-Documentation Agents for such Lenders, and Citigroup Global Markets Inc., as
Arranger.  Capitalized terms not otherwise defined in this Eighth Amended and
Restated Credit Agreement (364-Day Facility) (the “Amendment and Restatement”)
shall have the same meanings as specified in the Existing Credit Agreement.

 

(2)           The Borrower has requested that the Lenders agree to extend credit
to it from time to time in an aggregate principal amount of up to $1,000,000,000
for general corporate purposes of the Borrower and its Subsidiaries not
otherwise prohibited under the terms of this Amendment and Restatement.  The
Lenders have indicated their willingness to agree to extend credit to the
Borrower from time to time in such amount on the terms and conditions of this
Amendment and Restatement.

 

(3)           The parties to this Amendment and Restatement desire to amend the
Existing Credit Agreement as set forth herein and to restate the Existing Credit
Agreement in its entirety to read as set forth in the Existing Credit Agreement
with the following amendments.

 

SECTION 1.  Amendments to the Existing Credit Agreement.  Effective as of the
date of this Amendment and Restatement and subject to the satisfaction of the
conditions precedent set forth in Section 2 hereof:

 

(a)           Section 1.01 of the Existing Credit Agreement is hereby further
amended by:

 

(i)            deleting in its entirety the definition of “Applicable Fee
Percentage” set forth therein;

 

(ii)           amending and restating clause (a) of the definition of
“Applicable Margin” set forth therein to read as follows:

 

“(a) as of any date up to the Termination Date, 0.00% per annum for Base Rate
Advances and 0.12% per annum for Eurodollar Rate Advances; provided, however,
that if as of any date of determination up to the Termination Date the aggregate
amount of Advances outstanding exceeds 33% of

 

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the aggregate Commitments, the Applicable Margin for such date shall be the
percentage per annum determined in accordance with this clause (a) plus 0.05%
and”;

 

(iii)          deleting the number “0.500%” in the definition of “Applicable
Margin” set forth therein and substituting the number “0.400%” therefor;

 

(iv)          deleting the number “0.725%” in the definition of “Applicable
Margin” set forth therein and substituting the number “0.500%” therefor;

 

(v)           deleting in its entirety the proviso to the definition of
“Applicable Margin” set forth therein;

 

(vi)          amending and restating the definition of “Existing Credit
Facilities” set forth therein to read as follows:

 

““Existing Credit Facilities” means the credit facilities provided pursuant to
(a) the Seventh Amended and Restated Credit Agreement (364-Day Facility), dated
as of April 24, 2003, as amended, supplemented or otherwise modified from time
to time prior to the date hereof, among United Parcel Service, Inc., a Delaware
corporation, the banks, financial institutions and other institutional lenders
parties thereto, Citibank, N.A., as administrative agent and syndication agent,
Bank of America, N.A. and Bank One, NA, as co-documentation agents, and
Citigroup Global Markets Inc., as arranger thereunder and (b) the Credit
Agreement (Five-year Facility) dated as of April 24, 2003, among United Parcel
Service, Inc., a Delaware corporation, the banks, financial institutions and
other institutional lenders parties thereto, Citibank, N.A., as administrative
agent and syndication agent, Bank of America, N.A. and Bank One, NA, as
co-documentation agents, and Citigroup Global Markets Inc, as arranger
thereunder.”;

 

(vii)         amending and restating the definition of  “Public Debt Rating” set
forth therein to read as follows:

 

““Public Debt Rating” means, as of any date, the higher rating that has been
most recently announced by either S&P or Moody’s, as the case may be, for any
class of non-credit enhanced long-term senior unsecured debt issued by the
Borrower.  For purposes of the foregoing, (a) if only one of S&P and Moody’s
shall have in effect a Public Debt Rating, the Applicable Margin shall be
determined by reference to the available rating; (b) if neither S&P nor Moody’s
shall have in effect a Public Debt Rating, the Applicable Margin will be set in
accordance with Level 3 under the definition of “Applicable Margin”; (c) if the
ratings established by S&P and Moody’s shall fall within different levels, the
Applicable Margin shall be based upon the higher rating; provided, however, that
if the lower of such ratings is more than one level below the level of the
higher of such ratings, then the Applicable Margin shall be based upon the level
immediately above the level of the lower of such ratings; (d) if any rating
established by S&P or Moody’s shall be changed, such change shall be effective
as of the date on which such change is first announced publicly by the rating
agency making such change; and (e) if S&P or Moody’s shall change the basis on
which ratings are established, each reference to the Public Debt Rating
announced by S&P or Moody’s, as the case may be, shall refer to the then
equivalent rating by S&P or Moody’s, as the case may be; provided, however, that
if prior thereto the Borrower has selected, and the Required Lenders have
approved, a rating agency to replace S&P or Moody’s, as the case may be, such
selection shall be deemed to be S&P or Moody’s, as the case may be, for all
purposes hereof.”; and

 

(viii)        amending and restating the definition of  “Termination Date” set
forth therein to read as follows:

 

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““Termination Date” means the earlier of (i) April 21, 2005 or, if extended
pursuant to Section 2.16(a), the date that is 364 days after the Termination
Date then in effect, and (ii) the date of termination in whole of the
Commitments pursuant to section 2.05 or 6.01.”.

 

(b)           Section 2.04(a) of the Existing Credit Agreement is hereby amended
by deleting in its entirety clause (ii) thereof.

 

(c)           Section 4.01(e) of the Existing Credit Agreement is hereby amended
by replacing the date “December 31, 2002” with the date “December 31, 2003”.

 

(d)           Section 4.01(f) of the Existing Credit Agreement is amended by
replacing the date “December 31, 2002” with the date “December 31, 2003.”

 

SECTION 2.  Conditions of Effectiveness of this Amendment and Restatement.  This
Amendment and Restatement shall become effective as of the date first above
written (the “Restatement Effective Date”) when and only if:

 

(a)           The Administrative Agent shall have received counterparts of this
Amendment and Restatement executed by the Borrower, each of the Guarantors and
all of the Lenders or, as to any of the Lenders, advice satisfactory to the
Administrative Agent that such Lender has executed this Amendment and
Restatement.

 

(b)           The Administrative Agent shall have received on or before the
Restatement Effective Date the following, each dated such date and (unless
otherwise specified below) in form and substance satisfactory to the
Administrative Agent and (except for the Revolving Credit Notes) in sufficient
copies for each Lender:

 

(i)            The new Revolving Credit Notes, each dated April 22, 2004, issued
in connection with this Amendment and Restatement to the order of each of the
Lenders.

 

(ii)           Certified copies of the resolutions of the board of directors of
the Borrower approving this Amendment and Restatement, the Notes and all
documents evidencing other necessary corporate action and governmental
approvals, if any, with respect to this Amendment and Restatement and the Notes.

 

(iii)          Certified copies of the resolutions of the board of directors of
each of the Guarantors approving this Amendment and Restatement and all
documents evidencing other necessary corporate action and governmental
approvals, if any, with respect to this Amendment and Restatement.

 

(iv)          A certificate of the Secretary or an Assistant Secretary of each
of the Guarantors certifying the names and true signatures of the officers of
such Guarantor authorized to sign this Amendment and Restatement and the other
documents to be delivered hereunder.

 

(v)           A certificate of the Secretary or an Assistant Secretary of the
Borrower certifying the names and true signatures of the officers of the
Borrower authorized to sign this Agreement, the Notes and the other documents to
be delivered hereunder.

 

(vi)          A favorable opinion of King & Spalding, counsel for the Borrower,
in substantially the form of Exhibit G to the Existing Credit Agreement, but
with such

 

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modifications as are required to address the Existing Credit Agreement, as
amended by this Amendment and Restatement, in each such case in form and
substance reasonably satisfactory to the Lenders.

 

(vii)         A favorable opinion of Shearman & Sterling, counsel for the
Administrative Agent, in form and substance reasonably satisfactory to the
Administrative Agent.

 

(c)           The representations and warranties contained in Section 4.01 of
the Existing Credit Agreement shall be correct in all material respects on and
as of the Restatement Effective Date, before and after giving effect to the
Restatement Effective Date, as though made on and as of such date, except to the
extent that any such representation or warranty expressly relates solely to an
earlier date.

 

(d)           No event shall have occurred and be continuing, or shall occur as
a result of the occurrence of the Restatement Effective Date, that constitutes a
Default.

 

(e)           The Borrower shall have paid all fees and amounts due and payable.

 

SECTION 3.  Affirmation of Guaranty.  Each of the Guarantors hereby consents to
the execution and delivery of this Amendment and Restatement and ratifies and
confirms its obligations under the Guaranty dated April 24, 2003, which
obligations shall remain in full force and effect notwithstanding the provisions
of this Amendment and Restatement or any other amendment and restatement thereto
heretofore executed.  Each of the Guarantors further agrees that all references
to “the Borrower” in the above referenced Guaranty shall be deemed to be
references to the Borrower hereunder.

 

SECTION 4.  Reference to and Effect on the Existing Credit Agreement and the
Notes.  (a)  On and after the effectiveness of this Amendment and Restatement,
each reference in the Existing Credit Agreement to “this Agreement”,
“hereunder”, “hereof” or words of like import referring to the Existing Credit
Agreement, and each reference in the Notes to “the Credit Agreement”,
“thereunder”, “thereof” or words of like import referring to the Existing Credit
Agreement, shall mean and be a reference to the Existing Credit Agreement, as
amended by this Amendment and Restatement.

 

(b)           The Existing Credit Agreement and the Notes, as specifically
amended by this Amendment and Restatement, are and shall continue to be in full
force and effect and are hereby in all respects ratified and confirmed.

 

(c)           Without limiting any of the other provisions of the Existing
Credit Agreement, as amended by this Amendment and Restatement, any references
in the Existing Credit Agreement to the phrases “on the date hereof”, “on the
date of this Agreement” or words of similar import shall mean and be a reference
to the date of the Existing Credit Agreement (which is April 24, 2003).

 

SECTION 5.  Costs and Expenses.  The Borrower agrees to pay on demand all
reasonable out-of-pocket costs and expenses of the Administrative Agent in
connection with the preparation, execution, delivery and administration,
modification and amendment of this Amendment and Restatement, the Notes and the
other documents to be delivered hereunder (including, without limitation, the
reasonable and documented fees and expenses of counsel for the Administrative
Agent with respect  hereto and thereto) in accordance with the terms of Section
8.04 of the Existing Credit Agreement.

 

SECTION 6.  Execution in Counterparts.  This Amendment and Restatement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute

 

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one and the same agreement. Delivery of an executed counterpart of a signature
page to this Amendment and Restatement by telecopier shall be effective as
delivery of an original executed counterpart of such signature page.

 

SECTION 7.  Governing Law.  This Amendment and Restatement shall be governed by,
and construed in accordance with, the laws of the State of New York.

 

[Remainder of this Page Intentionally Left Blank]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment and
Restatement to be executed by their respective officers thereunto duly
authorized, as of the date first above written.

 

 

UNITED PARCEL SERVICE, INC.,
as Borrower

 

 

 

 

 

By

 /s/ Gary Barth

 

 

Name: Gary Barth

 

Title:

 

 

 

 

 

UNITED PARCEL SERVICE, INC., a New York
corporation, as Guarantor

 

 

 

 

 

By

 /s/ Gary Barth

 

 

Name: Gary Barth

 

Title:

 

 

 

 

 

UNITED PARCEL SERVICE, INC., an Ohio
corporation, as Guarantor

 

 

 

 

 

By

 /s/ Gary Barth

 

 

Name: Gary Barth

 

Title:

 

 

 

 

 

UNITED PARCEL SERVICE CO., a Delaware
corporation, as Guarantor

 

 

 

 

 

By

 /s/ Gary Barth

 

 

Name: Gary Barth

 

Title:

 

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CITIBANK, N.A.,

 

as Administrative Agent, Syndication Agent and Lender

 

 

 

 

 

By

 /s/ Robert A. Danziger

 

 

 

Name: Robert A. Danziger

 

 

Title:Vice President

 

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BANK OF AMERICA, N.A.

 

As Co-Documentation Agent and as Lender

 

 

 

 

 

By

 /s/ Lynn W. Stetson

 

 

 

Name: Lynn W. Stetson

 

 

Title: Managing Director

 

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BANK ONE, NA,

 

As Co-Documentation Agent and as Lender

 

 

 

By

 /s/ Christopher C. Cavalani

 

 

 

Name: Christopher C. Cavalani

 

 

Title: Director

 

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BNP PARIBAS

, as Lender

 

(Type or print legal name of Lender)

 

 

 

 

 

By:

 /s/ Mike Shryock

 

 

 

Name: Mike Shryock

 

 

Title: Director

 

 

 

 

 

 

 

 

 

By:

 /s/ Aurora Abella

 

 

 

Name: Aurora Abella

 

 

Title: Vice President

 

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CREDIT SUISSE FIRST BOSTON as Lender

 

Acting Through Its Cayman Islands Branch

 

 

 

 

 

 

 

 

By:

  /s/ Jay Chall

 

 

 

 

Name: Jay Chall

 

 

 

Title: Director

 

 

 

 

 

 

 

 

By:

  /s/  JENNIFER A. PIEZA

 

 

 

 

Name: JENNIFER A. PIEZA

 

 

 

Title: ASSOCIATE

 

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ROYAL BANK OF CANADA, as Lender

 

(Type or print legal name of Lender)

 

 

 

 

 

By:

  /s/ Scott Umbs

 

 

 

Name: Scott Umbs

 

 

Title: Authorized Signatory

 

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MELLON BANK, N.A., as Lender

 

(Type or print legal name of Lender)

 

 

 

 

 

By:

  /s/ Daniel J. Lenckos

 

 

 

Name:  Daniel J. Lenckos

 

 

Title:    First Vice President

 

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Wells Fargo Bank, National Association, as Lender

 

 

 

 

 

By:

  /s/ Alex Idichandy

 

 

 

Name:  Alex Idichandy

 

 

Title:    Vice President

 

 

 

 

 

By:

  /s/ James D. Heinz

 

 

 

Name:  James D. Heinz

 

 

Title:    Senior Vice President

 

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ABN AMRO Bank N.V., as Lender

 

 

 

 

 

By:

  /s/ Angela Noique

 

 

 

Angela Noique

 

 

Group Vice President

 

 

 

 

 

By:

  /s/ Peter J. Hallan

 

 

 

Peter J. Hallan

 

 

Vice President

 

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Merrill Lynch Bank USA, as Lender

 

 

 

 

 

By:

  /s/ David Millett

 

 

 

Name:  David Millett

 

 

Title:    Vice President

 

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JPMORGAN CHASE BANK, as Lender

 

 

 

 

 

By:

 /s/ Matthew H. Massie

 

 

 

Name: Matthew H. Massie

 

 

Title:   Managing Director

 

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STATE STREET BANK AND TRUST COMPANY,

 

as Lender

 

 

 

 

 

By:

 /s/ Juan G. Sierra

 

 

 

Name: Juan G. Sierra

 

 

Title:   Assistant Vice President

 

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BARCLAYS BANK PLC, as Lender

 

(Type or print legal name of Lender)

 

 

 

 

 

By:

  /s/ Nicholas Bell

 

 

 

Name: Nicholas Bell

 

 

Title:   Director

 

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[Logo]

 

 

Standard Chartered Bank, as Lender

 

(Type or print legal name of Lender)

 

 

 

 

 

By:

  /s/ Bert De Guzman

 

 

 

Name: Bert De Guzman

 

 

Title: Senior Vice President, Client Relationships

 

 

 

 

 

By:

  /s/ Robert Reddington

 

 

 

Name: Robert Reddington

 

 

Title: Assistant Vice President, Credit Documentation

 

 

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UBS LOAN FINANCE LLC, as Lender

 

 

 

 

 

By:

  /s/ Joselin Fernandes

 

 

 

Joselin Fernandes

 

 

Associate Director

 

 

Banking Products

 

 

Services, US

 

 

 

 

 

By:

  /s/ Doris Mesa

 

 

 

Doris Mesa

 

 

Associate Director

 

 

Banking Products

 

 

Services, US

 

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Dresdner Bank AG, New York and Grand Cayman

 

Branches, as Lender

 

 

 

 

 

By:

  /s/ Michael Leffler

 

 

 

Name:  Michael Leffler

 

 

Title:    Managing Director

 

 

 

 

 

By:

  /s/ Stephen Kovach

 

 

 

Name:  Stephen Kovach

 

 

Title:    Vice President

 

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