Filed by Bowne Pure Compliance





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.





 


 









 










			
	 	 	 
	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	 	 





 


 









 






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






 


 









 





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