Document:

Exhibit 10.24

Exhibit 10.24

VIA OVERNIGHT DELIVERY

February 26, 2009

Ms. Susan E. Partridge

United States Postal Service

475 L’Enfant Plaza S.W.

Washington, D.C. 20260-6210

			
	RE:	 	Transportation Agreement dated July 31, 2006 (the “Transportation Agreement”) between the
United States Postal Service (“USPS”) and Federal Express Corporation (“FedEx”)
Shipment Record on FedEx Holidays

Dear Ms. Partridge:

Effective March 15, 2009, USPS and FedEx add the following to Exhibit C, Payment Procedures, as
Paragraph VI:

	 	VI.	 	In order to address an operational incompatibility between the FedEx
invoicing system, which cannot generate an invoice on FedEx Holidays when no
volume is scanned, and the USPS system (SASS/LCMS INTERFACE), which cannot accept
a zero dollar invoice, and in order to avoid re-programming costs to both parties
by resolving the incompatibility, the parties agree to the following procedure:

 

 

 

Federal Express Corporation

Letter Agreement

February 26, 2009

FedEx will create and manually enter into FedEx’s rating system one shipment
record for each of the dates on which the FedEx Holidays will occur. For the
Shipping Periods in which the FedEx Holidays actually occur, FedEx will rate
the charge for the pre-loaded record, USPS will pay FedEx the invoiced charge,
and FedEx will issue USPS a credit for the amount of the charge in the
corresponding reconciliation. The shipment record for each FedEx Holiday will
be the then-current rate for a 1-lb trucking location loose piece and will be
subject to the same review processes between the Parties as all other
financial matters relating to the
Transportation Agreement. If actual volume occurs on any FedEx Holiday, the
charge for the actual volume will not be refunded. The D&R Numbers for these
records will be formatted with a “W” as the first character, the month, date
and year of the applicable FedEx Holiday as the 2nd through
7th characters, and “HOL” as the 8th through
10th characters, and FedEx’s Matching Handling Unit table will be
populated as follows:

	 	 	 
	Field Name	 	Value
	D&R Number

	 	Shipment identifier described above, e.g.
W112708HOL
	 
	 	 
	Tracking Item Unique ID

	 	0000000000 (10 zeros)
	 
	 	 
	Barcode Date

	 	Shipdate YYMMDD (date of HOL)
	 
	 	 
	Ship Date

	 	YYYYMMDD Ship Date (date of HOL)
	 
	 	 
	Post DT

	 	YYMMDD (date of HOL)
	 
	 	 
	Weight

	 	1 (1 lb)
	 
	 	 
	Orig Ramp

	 	“MEM” (Trucking Origin — Type E)
	 
	 	 
	Dest Ramp

	 	“MEM”
	 
	 	 
	Rounded Wgt

	 	1 (1 lb)
	 
	 	 
	Pickup USPS Type Cd

	 	 “l” (loose piece pre rating code)
	 
	 	 
	ServiceType

	 	“60”
	 
	 	 
	Match Status FLG Cd

	 	Either “1 or “2” (Matched in Found file)
	 
	 	 
	Match Status DT

	 	(Dated on the date of population)
	 
	 	 
	Rate Status FLG CD

	 	“0”
	 
	 	 
	Rate Status Dt

	 	(Dated on the date of population)
	 
	 	 
	Rated ULD CD

	 	“0”

All other fields in FedEx’s Matching Handling Unit table for these records
will not be populated.

 

 

 

Federal Express Corporation

Letter Agreement

February 26, 2009

By signing this letter, the USPS and FedEx agree to this amendment of the Transportation Agreement.
All capitalized terms have the meanings set out in the Transportation Agreement.

Please sign both counterparts of this letter, retain one for the USPS’ records, and return the
other fully executed counterpart to:

Myla Williams

Legal Department

Federal Express Corporation

3620 Hacks Cross Road

Building B, 3rd Floor

Memphis, Tennessee 38125

(901) 434-8362

If you should have any questions, please call Myla Williams at (901) 434-8362. Thank you.

Sincerely,

FEDERAL EXPRESS CORPORATION

	 	 	 
	/s/ PAUL HERRON
 

Paul J. Herron

	 	 
	Vice President
	 	 
	Postal Transportation Management
	 	 

AGREED TO AND ACCEPTED this 4th day of March, 2009.

THE UNITED STATES POSTAL SERVICE

	 	 	 	 	 
	By:

	 	/s/ SUSAN E. PARTRIDGE
 

	 	 
	Its:

	 	Purchasing and SM Specialist/Contracting Officer 

The “USPS”	 	 
	 
	 	 	 	 
	cc:

	 	Melissa Mortimer	 	 
	 

	 	Donna JewettExhibit 10.42

Exhibit 10.42

Compensation Arrangements with Named Executive Officers

Base Salaries

The following table sets forth the fiscal 2010 annual base salaries of FedEx’s named executive
officers in effect as of June 1, 2009:

	 	 	 	 	 
	Name and	 	 	 
	Current Position	 	Base Salary	 
	Frederick W. Smith
 
	 	$	1,188,048	 
	Chairman, President and

Chief Executive Officer
	 	 	 	 
	 
	 	 	 	 
	Alan B. Graf, Jr.
 
	 	$	840,948	 
	Executive Vice President and

Chief Financial Officer
	 	 	 	 
	 
	 	 	 	 
	David J. Bronczek
 
	 	$	878,184	 
	President and Chief Executive Officer — FedEx Express
	 	 	 	 
	 
	 	 	 	 
	T. Michael Glenn
	 	$	775,188	 
	Executive Vice President,

Market Development and

Corporate Communications
	 	 	 	 
	 
	 	 	 	 
	Christine P. Richards
 
	 	$	581,760	 
	Executive Vice President,

General Counsel and Secretary
	 	 	 	 

Fiscal 2010 Annual Incentive Compensation Program

Chairman, President and Chief Executive Officer

Frederick W. Smith’s fiscal 2010 annual bonus will be determined by the achievement of
corporate objectives for consolidated pre-tax income for fiscal 2010. The independent members of
the Board of Directors, upon the recommendation of the Compensation Committee, may adjust Mr.
Smith’s bonus amount upward or downward based on their evaluation of Mr. Smith’s performance,
including the quality and effectiveness of his leadership and the following corporate performance
measures:

	 	•	 	FedEx’s stock price performance relative to the Standard & Poor’s 500 Composite Index,
the Dow Jones Transportation Average, the Dow Jones Industrial Average and competitors;

	 	•	 	FedEx’s stock price to earnings (P/E) ratio relative to the Standard & Poor’s 500
Composite Index, the Dow Jones Industrial Average and competitors;

	 	•	 	FedEx’s market capitalization;

 

 

 

	 	•	 	FedEx’s revenue and operating income growth relative to competitors;

	 	•	 	FedEx’s free cash flow (excluding business acquisitions), return on invested capital
(excluding certain unusual items), and weighted average cost of capital;

	 	•	 	Analyst coverage and ratings for FedEx’s stock;

	 	•	 	FedEx’s U.S. and international revenue market share; and

	 	•	 	FedEx’s reputation rankings by various publications and surveys.

None of these factors will be given any particular weight in determining whether to adjust Mr.
Smith’s bonus amount.

Mr. Smith’s annual bonus target for fiscal 2010 is 130% of his annual base salary (at fiscal
year-end), with a maximum payout of 300% of his target bonus.

Non-CEO Named Executive Officers

The fiscal 2010 annual bonus target payouts for the non-CEO named executive officers, as a
percentage of annual base salary (at fiscal year-end), are as follows:

	 	 	 	 	 
	Name	 	Target Payout	 
	 
	 	 	 	 
	Alan B. Graf, Jr.
	 	 	90	%
	David J. Bronczek 
	 	 	100	%
	T. Michael Glenn
	 	 	90	%
	Christine P. Richards
	 	 	90	%

The maximum payout for each executive is 240% of his or her target bonus.

The fiscal 2010 annual bonus for the non-CEO named executive officers will be based on:

	 	•	 	the achievement of individual objectives established at the beginning of the fiscal year
for each executive (30% of each executive’s target bonus); and

	 	•	 	the achievement of corporate objectives for consolidated pre-tax income for fiscal 2010
(70% of each executive’s target bonus).

The annual bonus payout opportunity relating to individual performance is contingent upon
achievement of consolidated pre-tax income objectives under the bonus plan (as well as achievement
of the individual performance objectives). Mr. Smith will determine the achievement level of each
executive’s individual objectives at the conclusion of fiscal 2010.

The annual bonus payout opportunity relating to company financial performance ranges, on a
sliding scale, from a minimum amount if the annual bonus plan’s pre-established consolidated
pre-tax income threshold is achieved up to a maximum amount if such financial performance goal is
substantially exceeded.

 

2

 

Long-Term Incentive Program

FedEx’s long-term incentive (“LTI”) plans for the three-fiscal-year periods 2008 through 2010,
2009 through 2011 and 2010 through 2012, provide long-term cash bonus opportunities to
members of upper management, including the named executive officers, for fiscal 2010, 2011 and
2012, respectively, if certain aggregate fully diluted
earnings-per-share (“EPS”) goals established by the Board of Directors are
achieved with respect to those periods. No amounts can be earned for the fiscal 2008 through 2010,
2009 through 2011 and 2010 through 2012 plans until 2010, 2011 and 2012, respectively, because
achievement of the EPS goals can only be determined following the conclusion of the applicable
three-fiscal-year period.

FedEx acquired Kinko’s, Inc. (now known as FedEx Office) in fiscal 2004. During the fourth
quarter of fiscal 2008, FedEx recorded a charge of approximately $891 million ($696 million, net of
tax, or $2.23 per diluted share), predominantly for impairment of the value of the Kinko’s trade
name and the goodwill recorded as a result of the Kinko’s acquisition. The Board of Directors,
upon the recommendation of its Compensation Committee, decided that this charge would be excluded
from fiscal 2008 EPS for the purposes of (i) determining achievement levels under the LTI plan for
the three-fiscal-year period 2008 through 2010, and (ii) setting EPS goals under the LTI plan for
the three-fiscal-year period 2009 through 2011.

Traditionally, the base-year number over which the three-year average annual EPS growth rate
goals are measured for an LTI plan is the final full-year EPS of the preceding fiscal year. For
the FY2010-FY2012 LTI plan, however, the base-year number will be equal to the amount so that with
12.5% growth from such base-line EPS, the FY2010 business plan EPS goal will be achieved.

The following table sets forth the possible future payouts to each of FedEx’s named executive
officers under FedEx’s LTI plans:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Potential Future Payouts	 
	 	 	Performance	 	Threshold	 	 	Target	 	 	Maximum	 
	Name	 	Period	 	($)	 	 	($)	 	 	($)	 
	 
	Frederick W. Smith
	 	FY2008 – FY2010	 	 	875,000	 	 	 	3,500,000	 	 	 	5,250,000	 
	 
	 	FY2009 – FY2011	 	 	875,000	 	 	 	3,500,000	 	 	 	5,250,000	 
	 
	 	FY2010  – FY2012	 	 	875,000	 	 	 	3,500,000	 	 	 	5,250,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Alan B. Graf, Jr.
	 	FY2008 – FY2010	 	 	300,000	 	 	 	1,200,000	 	 	 	1,800,000	 
	 
	 	FY2009 – FY2011	 	 	300,000	 	 	 	1,200,000	 	 	 	1,800,000	 
	 
	 	FY2010  – FY2012	 	 	300,000	 	 	 	1,200,000	 	 	 	1,800,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	David J. Bronczek
	 	FY2008 – FY2010	 	 	375,000	 	 	 	1,500,000	 	 	 	2,250,000	 
	 
	 	FY2009 – FY2011	 	 	375,000	 	 	 	1,500,000	 	 	 	2,250,000	 
	 
	 	FY2010  – FY2012	 	 	375,000	 	 	 	1,500,000	 	 	 	2,250,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	T. Michael Glenn
	 	FY2008 – FY2010	 	 	300,000	 	 	 	1,200,000	 	 	 	1,800,000	 
	 
	 	FY2009 – FY2011	 	 	300,000	 	 	 	1,200,000	 	 	 	1,800,000	 
	 
	 	FY2010  – FY2012	 	 	300,000	 	 	 	1,200,000	 	 	 	1,800,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Christine P. Richards
	 	FY2008 – FY2010	 	 	300,000	 	 	 	1,200,000	 	 	 	1,800,000	 
	 
	 	FY2009 – FY2011	 	 	300,000	 	 	 	1,200,000	 	 	 	1,800,000	 
	 
	 	FY2010  – FY2012	 	 	300,000	 	 	 	1,200,000	 	 	 	1,800,000	 

 

3

 

The potential individual future payouts set forth in the table above are set dollar amounts
ranging from threshold (minimum) amounts, if the EPS goal achieved is less than target, up to
maximum amounts, if the plan goal is substantially exceeded. There can be no assurance that the
potential future payouts shown in this table will be achieved.

Other Arrangements

FedEx’s named executive officers are eligible to receive certain other annual compensation,
including certain perquisites and other personal benefits, such as personal use of corporate
aircraft (though the officers are required to reimburse FedEx for substantially all of the
incremental cost of such usage), security services and equipment (pursuant to FedEx’s executive
security procedures) and tax return preparation and financial counseling services.

In addition, FedEx’s named executive officers receive tax reimbursement payments relating to
restricted stock awards, certain business-related use of corporate aircraft and certain
perquisites.

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]