FedEx Corporation Exhibit 10.2



 




Exhibit 10.2




AMENDMENT




THIS AMENDMENT (“Amendment”) dated the 30th day of November, 2006, amends the Transportation
Agreement dated as of July 31, 2006 (the “Agreement”) between The United States Postal Service
(“USPS”) and Federal Express Corporation (“FedEx”).



Preamble




WHEREAS, USPS and FedEx entered into the Agreement in order to provide for the transportation
and delivery of the Products (as such term is defined in the Agreement);



WHEREAS, the parties now desire to amend certain provisions of the Agreement to provide an
expansion of the Products as stated below;



NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this
Amendment, the parties agree as follows:



1. FedEx agrees to provide terminal handling services for certain USPS shipment volume
commencing November 28, 2006 and terminating December 24, 2006 (“Terminal Handling Services”). The
Terminal Handling Services are more particularly described on Attachment 1.



2. USPS desires to utilize FedEx ULD’s for its peak charter operations and FedEx agrees to
provide such ULD’s based on the schedule and list of charges outlined in Attachment 2. USPS agrees
to pay the ULD charges based on the presumption that one charter will operate for four weeks and
the remaining charters will operate for three weeks. The parties agree that any volume which is
processed pursuant to this Amendment in which FedEx does not receive fuel and non-fuel payments
will not count toward any Minimum Volume Requirements under the Agreement.



3. FedEx agrees to provide certain equipment to the USPS in connection with the Terminal
Handling Services. The list of equipment and fees for the Terminal Handling Services are more
particularly described in Attachment 3.



4. All capitalized terms not otherwise defined in this Amendment shall have the meanings set
forth in the Agreement.



5. Except as amended by this Amendment, the terms and conditions of the Agreement shall remain
in full force and effect and are ratified and confirmed in all respects.



IN WITNESS WHEREOF, the parties have signed this Amendment in duplicate, one for each of the
Parties, as of December 5, 2006.



	 	 	 	 	 
	 	THE UNITED STATES POSTAL SERVICE

 	 
	  	By:  	/s/ CHARLES A. PAWLUS
 	 
	 	Title:  	Purchasing and Supply Management Specialist      	 
	 	 	 	 
	 
	 	FEDERAL EXPRESS CORPORATION 

 	 
	  	By:  	/s/ PAUL J. HERRON
 	 
	 	Title:  	VP, Postal Transportation      	 
	 	 	 	 
	 




 


 









 







ATTACHMENT 1





The FedEx Memphis Hub will perform a truck interface operation with the four USPS 747 and one
A300 charter aircraft. This operation will consist of trucks from approximately [ * ] origins
feeding volume into the Memphis Hub for the [ * ] as well as the domestic market of [ * ].
These markets will also be sending return volume for the [ * ] truck markets. The charter
aircraft operations will begin with an outbound launch on November 28, 2006 consisting of one 747
to [ * ]. This aircraft will operate week 1 of the December 2006 schedule block. Trucking
operations from the [ * ] participating locations and additional charter aircraft operations will
begin December 5, 2006. The additional aircraft will consist of an aircraft to [ * ] and an
aircraft to [ * ]. All five aircraft shall make return trips to Memphis. The last day for truck
inbound and outbound to and from Memphis for volume will be December 23, 2006.



On the USPS truck inbound operation, FedEx will offload the USPS shipment volume from USPS trucks,
process it pursuant to the terms of the Agreement and load volume into FedEx ULD’s. Finally, FedEx
will move the ULD’s to the USPS charter aircraft for transport. The USPS will provide trailers for
the foregoing movements.



On the USPS inbound charter operation, FedEx will separate the ULD’s tendered to FedEx by the USPS
charter operation according to the USPS placards or D&R Tags. ULD’s with D&R Tags destined for
non-trucking locations will be entered into the FedEx Memphis sort and USPS will be invoiced for
fuel, non-fuel and handling charges pursuant to the Agreement. ULD’s destined for trucking sites
will be unloaded from the placarded ULD’s and FedEx will load the USPS trucks at the Memphis hub
onto USPS surface transportation. FedEx will be compensated for the handling units based on the
number and ULD size pursuant to the Agreement. FedEx will keep track of the unloaded ULD types and
numbers and the day of processing. The handling charge difference between [ * ] and the invoiced
tiered rate will be calculated and paid in the December reconciliation.



The last day for aircraft charter operations will be inbound to MEM from all offshore markets on
December 24, 2006. Normal FedEx operations and movement of offshore volume will resume for the
outbound on December 24, 2006. The one 747 aircraft from [ * ] shall begin its first leg of
operations from the MEM airport. The remaining aircraft from [ * ] shall commence operations
from their origin locations.




	*	 	Blank spaces contained confidential information which has been filed separately with the
Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of
1934, as amended.









 


 









 







Attachment 2




Peak Charter

Operations

ULD Assignment

and Cost




Assumptions:




	 	1.	 	747 Aircraft are used for the charter operations. Each aircraft carries [ * ] and [ * ].

	 
	 	2.	 	Each flight requires 2 set of ULDs, one set for the ULDs in transit and another set at the origin to build the next movement.

	 
	 	3.	 	Two sets of ULDs per aircraft, [ * ] and [ * ], are the amount of containers charged per day.

	 
	 	4.	 	The weekly charge is based on 6 operations days per week

	 
	 	5.	 	The amount charged per container are AMJ — [ * ] and LD3s — [ * ]






	 	 	 	 	 	 	 
	 
	 	 	 	 	 	ULDs per Week
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	[ * ]
	 	 	 	 	 	 	 
	Total AMJs for the Period
	 	[ * ]	 	 	 	 
	Total LD3s for the Period
	 	[ * ]	 	 	 	 
	 	 	 	 	 	 	 
	ULD Charge for Period	 	 	 	 	 	 
	 	 	 	 	 	 	 
	ULD Type
	 	AMJ
	 	LD3
	 	SAA
	 
	 	 
	 	 
	 	 
	Amount of containers
	 	[ * ]
	 	[ * ]
	 	[ * ]
	Charge per ULD
	 	[ * ]
	 	[ * ]
	 	[ * ]
	Total Charge Per ULD type
	 	[ * ]
	 	[ * ]
	 	[ * ]
	 
	 	 
	 	 
	 	 
	Total Charge
	 	 	 	 	 	[ * ]







	*	 	Blank spaces contained confidential information which has been filed separately with the
Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of
1934, as amended.





 


 









 










ATTACHMENT 3




FEES FOR TERMINAL HANDLING SERVICES AND EQUIPMENT PROVIDED




[ * ]





	*	 	Blank spaces contained confidential information which has been filed separately with the
Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of
1934, as amended.