EX-10.242





 Exhibit 10.242 

Execution Version 
 FIRST
AMENDMENT 
 FIRST AMENDMENT (this “Amendment”), dated as of May 27, 2020, to the Amended and Restated Five-Year
Credit Agreement, dated as of March 17, 2020, among FEDEX CORPORATION, a Delaware corporation (the “Borrower”), the several lenders party thereto (the “Lenders”), JPMORGAN CHASE BANK, N.A., as administrative
agent (in such capacity, the “Administrative Agent”) and each other party thereto (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”). 

W I T N E S S E T H : 
 WHEREAS,
the Borrower, the Lenders and the Administrative Agent originally entered into the Credit Agreement, pursuant to which the Lenders may make certain loans and other extensions of credit to the Borrower; 

WHEREAS, the Borrower and the Lenders wish to make certain amendments to the Credit Agreement as described herein; and 

WHEREAS, in furtherance thereof, each party hereto hereby consents to the modifications to the Credit Agreement as set forth in Section 2
below (the Credit Agreement, as hereby modified by this Amendment, the “Amended Credit Agreement”). 
 NOW, THEREFORE, the
parties hereto hereby agree as follows: 
 SECTION 1. Defined Terms. Unless otherwise defined herein, terms defined in the Amended
Credit Agreement and used herein shall have the meanings given to them in the Amended Credit Agreement. 
 SECTION 2. Amendments. The
Borrower, the Lenders and the Administrative Agent agree that the Credit Agreement is, effective as of the First Amendment Effective Date (as defined below), hereby amended as follows: 

(a) New definitions are hereby incorporated to the Defined Terms in Section 1.01 of the Credit Agreement in alphabetical order as follows:

   ““Covenant Relief Period” means the period from the First Amendment Effective Date to
and including May 31, 2021.” 
   ““First Amendment” means the First Amendment to
this Agreement dated as of May 27, 2020.” 
   ““First Amendment Effective Date”
has the meaning set forth in Section 3 of this Amendment.” 
   ““Short Term Debt”
means, as of any date with respect to any Person, all liabilities of such Person outstanding on such date which would in accordance with GAAP be classified as short term debt of such Person (including, without limitation, finance lease obligations
of such Person).” 












 (b) The definition of “Consolidated EBITDA” in the Credit Agreement is hereby
amended and restated in its entirety as follows: 
 “Consolidated EBITDA” means, for any period, Consolidated Operating
Income for such period plus, without duplication and to the extent reducing such Consolidated Operating Income for such period, the sum of (a) depreciation and amortization expense, (b) amortization of intangibles (including, but not
limited to, goodwill), (c) all non-cash pension expenses and losses, including, but not limited to, pension service costs, and (d) non-cash asset impairment charges
related to long-lived assets (including intangible asset impairment charges), and minus, without duplication, to the extent included in such Consolidated Operating Income for such period, non-cash periodic mark-to-market credits related to pension gains, all as determined on a consolidated basis. 

(c) The definition of “Pricing Grid” in the Credit Agreement is hereby amended and restated in its entirety: 

““Pricing Grid” means as follows: 
  

															
	 Level
	  	 Index Debt Ratings
	  	Applicable Rate
(Eurodollar Loan)	 	 	Applicable Rate
(ABR Loan)	 	 	Commitment Fee
Rate	 
	 Level 1
	  	3 A- from S&P
or 3 A3 from Moody’s	  	 	0.875	% 	 	 	0.00	% 	 	 	0.09	% 
	 Level 2
	  	BBB+ from S&P
or Baa1 from Moody’s	  	 	1.00	% 	 	 	0.00	% 	 	 	0.10	% 
	 Level 3
	  	BBB from S&P
or Baa2 from Moody’s	  	 	1.25	% 	 	 	0.25	% 	 	 	0.125	% 
	 Level 4
	  	BBB- from S&P
or Baa3 from Moody’s	  	 	1.375	% 	 	 	0.375	% 	 	 	0.175	% 
	 Level 5
	  	< BBB- from S&P
and < Baa3 from Moody’s	  	 	1.625	% 	 	 	0.625	% 	 	 	0.225	% 

 ; provided that during the Covenant Relief Period: 

 

															
	 Level
	  	 Index Debt Ratings
	  	Applicable Rate
(Eurodollar Loan)	 	 	Applicable Rate
(ABR Loan)	 	 	Commitment Fee
Rate	 
	 Level 1
	  	3 A- from S&P
or 3 A3 from Moody’s	  	 	1.00	% 	 	 	0.00	% 	 	 	0.15	% 
	 Level 2
	  	BBB+ from S&P
or Baa1 from Moody’s	  	 	1.25	% 	 	 	0.25	% 	 	 	0.20	% 
	 Level 3
	  	BBB from S&P
or Baa2 from Moody’s	  	 	1.50	% 	 	 	0.50	% 	 	 	0.25	% 
	 Level 4
	  	BBB- from S&P
or Baa3 from Moody’s	  	 	1.75	% 	 	 	0.75	% 	 	 	0.30	% 
	 Level 5
	  	< BBB- from S&P
and < Baa3 from Moody’s	  	 	2.00	% 	 	 	1.00	% 	 	 	0.40	% 













 For purposes of the foregoing, (i) if the ratings established or deemed to have been
established by Moody’s and S&P for the Index Debt shall be changed (other than as a result of a change in the rating system of Moody’s or S&P), such change shall be effective as of the date on which it is first announced by the
applicable rating agency; (ii) if the ratings established or deemed to have been established by Moody’s and S&P for the Index Debt shall fall within different Levels, the Applicable Rate shall be based on the higher of the two
(2) ratings unless one (1) of the two (2) ratings is two (2) or more Levels lower than the other, in which case the Applicable Rate shall be determined by reference to the Level next below that of the higher of the two
(2) ratings; and (iii) if either Moody’s or S&P shall not have in effect a rating for the Index Debt (other than by reason of the circumstances referred to in the last sentence of this definition), then such rating agency shall be
deemed to have established a rating in Level 5. Each change in the Applicable Rate shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such
change. If the rating system of Moody’s or S&P shall change, the Borrower and the Lenders shall negotiate in good faith to amend this definition to reflect such changed rating system and, pending the effectiveness of any such amendment, the
Applicable Rate shall be determined by reference to the rating most recently in effect prior to such change.” 
 (d) Section 6.09
of the Credit Agreement is hereby amended and restated in its entirety as follows: 
   “SECTION 6.09.
Leverage. The Borrower will maintain, on the last day of each fiscal quarter of Borrower, a ratio of (a) Consolidated Total Debt on such day to (b) Consolidated EBITDA as at the last day of any period of four consecutive fiscal
quarters of the Borrower (each such day being a “Measurement Date”) of not more than the ratio set forth below opposite such Measurement Date: 
  

					
	 Measurement Date
	  	Ratio	 
	 May 31, 2020
	  	 	3.75:1.00	 
	 August 31, 2020
	  	 	4.75:1.00	 
	 November 30, 2020
	  	 	4.90:1.00	 
	 February 28, 2021
	  	 	4.75:1.00	 
	 May 31, 2021
	  	 	3.75:1.00	 
	 August 31, 2021 and thereafter
	  	 	3.50:1.00	 


”                       
  
 (e) Section 7.01(r) of the Credit Agreement is hereby amended to by removing “.” at the end of the paragraph and
adding the following: 
   “provided further that for any Lien that is incurred during the Covenant
Relief Period, as of the date any such Lien is incurred, the sum of (i) the aggregate principal amount of all outstanding Long Term Debt and Short Term Debt of the consolidated Subsidiaries which are not Guarantors (excluding any Long Term Debt
or Short Term Debt of a 












 
consolidated Subsidiary owing to the Borrower or another consolidated Subsidiary that is a Guarantor), plus (ii) the aggregate principal amount of all outstanding Long Term Debt and
Short Term Debt of the Borrower or any Guarantor (excluding any Long Term Debt or Short Term Debt of a consolidated Subsidiary owing to the Borrower or another consolidated Subsidiary that is a Guarantor) which is secured as permitted by this
Section 7.01(r), does not exceed eight percent (8%) of Consolidated Adjusted Total Assets.” 
 (f) A new Section 7.06 is
hereby incorporated to the Negative Covenants in Article VII of the Credit Agreement immediately following Section 7.05 as follows: 

  “SECTION 7.06. Restricted Payments. During the Covenant Relief Period, the Borrower will not
(i) repurchase any shares of the Borrower’s common stock, par value $0.10 per share (“Common Stock”) or (ii) increase the amount of the quarterly dividend payable per share of Common Stock from $0.65 per share of
Common Stock.” 
 SECTION 3. Conditions to Effectiveness. This Amendment shall become effective on and as of the date (the
“First Amendment Effective Date”) upon which the following conditions shall have been satisfied (or waived in accordance with Section 10.01 of the Credit Agreement): 

(a) The Administrative Agent shall have received this Amendment, executed and delivered by a duly authorized officer of the Borrower, the
Required Lenders and the Administrative Agent; 
 (b) No Default or Event of Default has occurred and is continuing on the First Amendment
Effective Date or shall result from the effectiveness of this Amendment; 
 (c) Immediately before and after giving effect to this Amendment,
the representations and warranties of each Loan Party set forth in the Loan Documents are true and correct in all material respects (or, in the case of representations and warranties qualified as to materiality, in all respects) on and as of the
First Amendment Effective Date, except in the case of any such representation and warranty that expressly relates to a prior date, in which case such representation and warranty shall be true and correct in all material respects (or in all respects,
as applicable) as of such earlier date; 
 (d) The Administrative Agent shall have received a certificate, dated as of the First Amendment
Effective Date and signed by the President, Chief Executive Officer, or a Financial Officer of the Borrower certifying as to compliance with Section 3(b) and (c) of this Amendment; and 

(e) The Borrower shall have paid all fees and all reasonable and documented expenses required to be paid on or before the First Amendment
Effective Date (including the consent fee and all fees, charges and disbursements of counsel to the Administrative Agent (directly to such counsel if requested by the Administrative Agent)). 

SECTION 4. Representations and Warranties. On and as of the First Amendment Effective Date, after giving effect to this Amendment, each
Loan Party hereby represents and warrants to the Administrative Agent and each Lender that this Amendment has been duly authorized by all necessary corporate or other organizational action. This Amendment has been duly executed and delivered by each
Loan Party party hereto and constitutes a legal, valid and binding obligation of each Loan Party party hereto, enforceable against such Person in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or
other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. 












 SECTION 5. No Other Amendment or Waivers; Confirmation. This Amendment shall not
constitute a novation of any Obligations. Except as expressly provided hereby, all of the terms and provisions of the Credit Agreement and the other Loan Documents are and shall remain in full force and effect. The amendments contained herein shall
not be construed as an amendment or waiver of any other provision of the Amended Credit Agreement or the other Loan Documents or for any purpose except as expressly set forth herein or a consent to any further or future action on the part of any
Loan Party that would require the waiver or consent of the Administrative Agent or the Lenders. 
 SECTION 6. GOVERNING LAW; WAIVER OF
JURY TRIAL. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. EACH PARTY HERETO HEREBY AGREES AS SET FORTH IN SECTIONS 10.11, 10.12 AND 10.16 OF THE AMENDED CREDIT AGREEMENT
AS IF SUCH SECTIONS WERE SET FORTH IN FULL HEREIN. 
 SECTION 7. Miscellaneous. (a) This Amendment may be executed in
counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of
this Amendment by telecopy or other electronic imaging means shall be effective as delivery of a manually executed counterpart of this Amendment. 

(b) The provisions of this Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby (including permitted assignees of its Loans in whole or in part prior to effectiveness hereof). 
 (c) This
Amendment shall be a Loan Document for all purposes of the Amended Credit Agreement and the other Loan Documents. 
 SECTION 8.
Severability. If any provision of this Amendment or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Amendment and the other Loan
Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as
possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

SECTION 9. Headings. Section headings used herein are for convenience of reference only, are not part of this Amendment and shall not
affect the construction of, or be taken into consideration in interpreting, this Amendment. 
 SECTION 10. Loan Party
Acknowledgments. (a) Each Loan Party hereby (i) expressly acknowledges the terms of the Amended Credit Agreement, (ii) ratifies and affirms its obligations under the Loan Documents (including guarantees) to which it is a party,
(iii) acknowledges, renews and extends its continued liability under all such Loan Documents and agrees such Loan Documents remain in full force and effect and (iv) further confirms that each Loan Document to which it is a party is and
shall continue to be in full force and effect and the same are hereby ratified and confirmed in all respects. 
 (b) Each Loan Party hereby
reaffirms, as of the First Amendment Effective Date, (i) the covenants and agreements contained in each Loan Document to which it is a party, including, in each case, such covenants and agreements as in effect immediately after giving effect to
this Amendment and the transactions contemplated thereby, and (ii) its guarantee of payment of the Obligations pursuant to the Guarantee Agreement. 












 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered by their proper and duly authorized officers as of the day and year first above written. 
  

			
	 BORROWER:
  

FEDEX CORPORATION

		
	By:	 	 /s/ Michael C. Lenz

		 	Name: Michael C. Lenz
		 	Title:   Corporate Vice President and Treasurer


 [Signature Page to Amendment—Five-Year Credit Agreement] 












 
			
	 GUARANTORS:
  

FEDERAL EXPRESS CORPORATION

		
	 By:
	 	 /s/ Elise L. Jordan

		 	 Name: Elise L. Jordan

		 	 Title:   Executive Vice President and CFO




  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	FEDERAL EXPRESS EUROPE, INC.
		
	By:	 	 /s/ Michael C. Lenz

		 	Name: Michael C. Lenz
		 	Title:   Treasurer



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	FEDERAL EXPRESS HOLDINGS S.A., LLC
		
	 By:
	 	 /s/ Michael C. Lenz

		 	 Name: Michael C. Lenz

		 	 Title:   Treasurer




  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	FEDERAL EXPRESS INTERNATIONAL, INC.
		
	 By:
	 	 /s/ Michael C. Lenz

		 	 Name: Michael C. Lenz

		 	 Title:   Treasurer




  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	FEDEX CORPORATE SERVICES, INC.
		
	 By:
	 	 /s/ Sharon L. Hawkins

		 	 Name: Sharon L. Hawkins

		 	 Title:   Senior Vice President and CFO




  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	FEDEX FREIGHT CORPORATION
		
	 By:
	 	 /s/ Matthew L. Rittenhour

		 	 Name: Matthew L. Rittenhour

		 	 Title:   Senior Vice President – Finance and CFO




  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	FEDEX FREIGHT, INC.
		
	 By:
	 	 /s/ Matthew L. Rittenhour

		 	 Name: Matthew L. Rittenhour

		 	 Title:   Senior Vice President – Finance and CFO




  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	FEDEX GROUND PACKAGE SYSTEM, INC.
		
	By:	 	 /s/ Robert D. Henning

		 	Name: Robert D. Henning
		 	Title:   Executive Vice President and CFO



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	FEDEX OFFICE AND PRINT SERVICES, INC.
		
	By:	 	 /s/ Leslie M. Benners

		 	Name: Leslie M. Benners
		 	Title:   Senior Vice President and CFO



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	 JPMORGAN CHASE BANK, N.A., as Administrative Agent, a Lender and Issuing
Bank

		
	By:	 	 /s/ Jonathan Bennett

		 	 Name: Jonathan Bennett

		 	 Title:   Executive Director




  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	BANK OF AMERICA, N.A., as a Lender and Issuing Bank
		
	By:	 	 /s/ Jason Yakabu

		 	Name: Jason Yakabu
		 	Title:   Vice President



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	 CITIBANK, N.A., as a Lender and Issuing Bank

		
	 By:
	 	 /s/ Meghan O’Connor

		 	 Name: Meghan O’Connor

		 	 Title:   Vice President




  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	The Bank of Nova Scotia, as a Lender and Issuing Bank
		
	By:	 	 /s/ Dave Vishny

		 	Name: Dave Vishny
		 	Title:   Managing Director



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	 Wells Fargo Bank, National Association, as a Lender and Issuing
Bank

		
	By:	 	 /s/ Kevin Valenta

		 	Name: Kevin Valenta
		 	Title:   Vice President



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	BNP PARIBAS, as a Lender
		
	By:	 	 /s/ Todd Grossnickle

		 	Name: Todd Grossnickle
		 	Title:   Director
		
	By:	 	 /s/ Nader Tannous

		 	Name: Nader Tannous
		 	Title:   Managing Director



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	 DEUTSCHE BANK AG NEW YORK BRANCH, as a Lender

		
	By:	 	 /s/ Annie Chung

		 	Name: Annie Chung
		 	Title:   Director
		
	By:	 	 /s/ Ming K. Chu

		 	Name: Ming K. Chu
		 	Title:   Director



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	Goldman Sachs Bank USA, as a Lender
		
	By:	 	 /s/ Jamie Minieri

		 	Name: Jamie Minieri
		 	Title:   Authorized Signatory



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	HSBC Bank USA, N.A., as a Lender
		
	By:	 	 /s/ Patrick Mueller

		 	Name: Patrick Mueller
		 	Title:   Managing Director



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	 ING BANK N.V., DUBLIN BRANCH, as a Lender

		
	 By:
	 	 /s/ Barry Fehily

		 	 Name: Barry Fehily

		 	 Title:   Managing Director

		
	 By:
	 	 /s/ Sean Hassett

		 	 Name: Sean Hassett

		 	 Title:   Director




  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	MIZUHO BANK (USA), as a Lender
		
	By:	 	 /s/ Donna DeMagistris

		 	Name: Donna DeMagistris
		 	Title:   Executive Director



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	MORGAN STANLEY BANK, N.A., as a Lender
		
	By:	 	 /s/ Jack Kuhns

		 	Name: Jack Kuhns
		 	Title:   Authorized Signatory



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	MUFG Bank, Ltd., as a Lender
		
	By:	 	 /s/ John Margetanski

		 	Name: John Margetanski
		 	Title:   Director



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	REGIONS BANK, as a Lender
		
	By:	 	 /s/ Rachel Harris

		 	Name: Rachel Harris
		 	Title:   Vice President



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	Truist Bank, as a Lender
		
	By:	 	 /s/ Max N. Greer III

		 	Name: Max N. Greer III
		 	Title:   Senior Vice President



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	 KBC BANK N.V., as a Lender

		
	 By:
	 	 /s/ Nicholas Fiore

		 	 Name: Nicholas Fiore

		 	 Title:   Director

		
	 By:
	 	 /s/ Francis Payne

		 	 Name: Francis Payne

		 	 Title:   Managing Director




  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	PNC Bank, National Association, as a Lender
		
	By:	 	 /s/ Tracey Silverman

		 	Name: Tracey Silverman
		 	Title:   Senior Vice President



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	 SUMITOMO MITSUI BANKING CORPORATION, as a Lender

		
	By:	 	 /s/ Michael Maguire

		 	Name: Michael Maguire
		 	Title:   Managing Director



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	STANDARD CHARTERED BANK, as a Lender
		
	By:	 	 /s/ James Beck

		 	Name: James Beck
		 	Title:   Associate Director



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	U.S. Bank National Association, as a Lender
		
	By:	 	 /s/ Peter I. Bystol

		 	Name: Peter I. Bystol
		 	Title:   Senior Vice President



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	 STATE STREET BANK AND TRUST COMPANY, as a Lender

		
	By:	 	 /s/ Pallo Blum-Tucker

		 	Name: Pallo Blum-Tucker
		 	Title:   Managing Director



  
 [Signature Page to
Amendment—Five-Year Credit Agreement] 













 
			
	First Horizon Bank, as a Lender
		
	By:	 	 /s/ Duncan Galbreath

		 	Name: Duncan Galbreath
		 	Title:   Senior Vice President



  
 [Signature Page to
Amendment—Five-Year Credit Agreement]