Document:

<Page>

                                                                    EXHIBIT 10.3

              SEVENTH SPECIAL FACILITY SUPPLEMENTAL LEASE AGREEMENT

                                 BY AND BETWEEN

                     MEMPHIS-SHELBY COUNTY AIRPORT AUTHORITY

                                       AND

                           FEDERAL EXPRESS CORPORATION

                            DATED AS OF JUNE 1, 2002

<Page>

                                TABLE OF CONTENTS

<Table>
<S>                                                                                 <C>
SECTION 1.   Definitions............................................................1
SECTION 2.   Term of Lease..........................................................2
SECTION 3.   Rental.................................................................2
SECTION 4.   Prepayment of Certain Rentals..........................................2
SECTION 5.   Series 2002 Bonds......................................................3
SECTION 6.   Special Covenants of the Lessee........................................3
SECTION 7.   Tax Covenant...........................................................3
SECTION 8.   Lease Still in Effect; Provisions Thereof Applicable to
               this Seventh Supplemental Lease......................................3
SECTION 9.   Descriptive Headings...................................................3
SECTION 10.  Effectiveness of this Seventh Supplemental Lease.......................3
SECTION 11.  Execution of Counterparts..............................................3
</Table>

                                        i
<Page>

                            SEVENTH SPECIAL FACILITY
                          SUPPLEMENTAL LEASE AGREEMENT

          THIS SEVENTH SPECIAL FACILITY SUPPLEMENTAL LEASE AGREEMENT (this
"Seventh Supplemental Lease") dated as of the first day of June 2002, by and
between the MEMPHIS-SHELBY COUNTY AIRPORT AUTHORITY (the "Lessor"), a public and
governmental body politic and corporate of the State of Tennessee, and FEDERAL
EXPRESS CORPORATION (the "Lessee"), a corporation duly organized and existing
under the laws of the State of Delaware and qualified to do business in the
State of Tennessee;

                                   WITNESSETH:

          WHEREAS, Lessor and Lessee on August 21, 1979, entered into a Special
Facility Lease Agreement dated as of August 1, 1979 (as heretofore amended and
supplemented by the Supplemental Leases (defined below), the "Lease");

          WHEREAS, Lessor and Lessee have amended and supplemented the Lease by
First, Second, Third, Fourth, Fifth and Sixth Special Facility Supplemental
Lease Agreements dated as of May 1, 1982, November 1, 1982, December 1, 1984,
July 1, 1992, July 1, 1997 and December 1, 2001, respectively (said First,
Second, Third, Fourth, Fifth and Sixth Special Facility Supplemental Lease
Agreements being referred to herein, collectively, as the "Supplemental
Leases"); and

          WHEREAS, Lessor and Lessee have agreed to further supplement the Lease
to reflect a change in rentals resulting from the current refunding of the
Lessor's Special Facilities Revenue Bonds, Refunding Series 1992 (Federal
Express Corporation) issued to refund bonds originally issued to finance
facilities and equipment for inclusion in the Special Facility, as defined in
the Lease;

          NOW, THEREFORE, for and in consideration of the mutual promises,
covenants and agreements hereinafter contained to be kept and performed by the
parties hereto and upon the provisions and conditions hereinafter set forth,
Lessor and Lessee do hereby covenant and agree, and each for itself does hereby
covenant and agree, as follows:

          SECTION 1. DEFINITIONS. Except as otherwise provided herein, and
unless the context shall clearly require otherwise, all words and terms used in
this Seventh Supplemental Lease which are defined in the Lease shall, for all
purposes of this Seventh Supplemental Lease, have the respective meanings given
to them in the Lease.

          Unless the context shall clearly require otherwise, the following
terms shall, for all purposes of the Lease and of any agreement amendatory or
supplemental thereto (including for all purposes this Seventh Supplemental
Lease) have the meanings herein specified, with the following definitions to be
equally applicable to both the singular and plural forms of any of the terms
herein defined:

<Page>

     (a)  EIGHTH SUPPLEMENTAL INDENTURE. The term "Eighth Supplemental
          Indenture" shall mean the Eighth Supplemental Indenture dated as of
          June 1, 2002, by and between the Lessor and the Trustee amending and
          supplementing the Indenture, as amended and supplemented as provided
          in the Indenture.

     (b)  SERIES 2002 BONDS. The term "Series 2002 Bonds" shall mean the
          $95,770,000 principal amount of special obligation bonds of the Lessor
          designated Special Facilities Revenue Refunding Bonds, Series 2002
          (Federal Express Corporation) and issued under Sections 2.07 and 2.08
          of the Indenture and the Eighth Supplemental Indenture and in
          accordance with Section 7.6 of the Lease.

          SECTION 2. TERM OF LEASE. The term of the Lease, including this
Seventh Supplemental Lease, shall expire on August 31, 2012 at 11:59 o'clock
P.M.; PROVIDED, that the term of the Lease, including this Seventh Supplemental
Lease, shall not expire so long as any Bonds remain outstanding under the terms
of the Indenture except as provided in subsection A of Section 9.2 of the Lease.

          SECTION 3. RENTAL. Lessee shall pay the rentals reserved to the Lessor
under Section 3.3 of the Lease at the time, place and manner set forth therein,
which from and after the date of delivery of and payment for the Series 2002
Bonds, in addition to the amounts otherwise payable as of the date hereof under
said Section 3.3, shall include (a) an amount equal to the principal of and
premium (if any) and interest on the Series 2002 Bonds as and when the same
become due and payable by reason of stated maturity or redemption of such Bonds
as provided in the Indenture, and (b) all other amounts payable under said
Section 3.3 in connection with the Series 2002 Bonds.

          SECTION 4. PREPAYMENT OF CERTAIN RENTALS. (a) Lessee may prepay the
rentals required hereby in accordance with subsections A, B and C of Section 3.4
of the Lease and receive the credits provided therein.

          (b)  In the event a judgment or order of a court of competent
jurisdiction which is final (either because the time for appeal thereof has
expired or because the judgment or order is issued by that court having final
appellate jurisdiction over the matter and is not subject to collateral attack),
or a determination of the Internal Revenue Service which is final (because the
tax has been paid pursuant thereto and the time for filing a claim for refund of
such tax has expired) to the effect that the interest paid or payable on any
Series 2002 Bond to other than a substantial user of the Special Facility or a
related person is or was includable in the gross income of the holder thereof
for federal income tax purposes as a result of a failure by the Lessee to
observe or perform any covenant or agreement to be observed or performed by it
under the Lease or as a result of facts within the control of the Lessee which
are contradictory to any representation or warranty made by the Lessee under the
Lease, the Lessee shall prepay on the next scheduled rent payment date the
entire amount of rent due under subparagraph (b) of Section 3.3 of the Lease and
pursuant to Section 3 hereof to effect redemption of the then outstanding Series
2002 Bonds in accordance with the Indenture.

                                      - 2 -
<Page>

          SECTION 5. SERIES 2002 BONDS. Lessor shall apply the proceeds of the
Series 2002 Bonds in accordance with the terms of the Eighth Supplemental
Indenture, the form, terms and provisions of which the Lessee hereby
acknowledges.

          SECTION 6. SPECIAL COVENANTS OF THE LESSEE. The Lessee covenants and
agrees with the Lessor that so long as the Series 2002 Bonds are outstanding, it
will provide the Lessor with copies of all publicly available reports, notices,
financial statements or other documents that the Lessee is required to provide
to the Securities and Exchange Commission.

          SECTION 7. TAX COVENANT. The Lessee covenants and agrees that it will
comply with the requirements of Section 103 and Sections 141 through 150 of the
Internal Revenue Code of 1986, as amended (the "Code"), if and to the extent
required to maintain the exclusion of interest on the Series 2002 Bonds from
gross income for federal income tax purposes under the Code.

          SECTION 8. LEASE STILL IN EFFECT; PROVISIONS THEREOF APPLICABLE TO
THIS SEVENTH SUPPLEMENTAL LEASE. All of the terms, provisions, conditions,
covenants and agreements of the Lease shall continue in full force and effect as
supplemented hereby, and shall be applicable to each of the provisions of this
Seventh Supplemental Lease during the term hereof with the same force and effect
as though the provisions hereof were set forth in the Lease.

          SECTION 9. DESCRIPTIVE HEADINGS. The descriptive headings of the
sections of this Seventh Supplemental Lease are inserted for convenience of
reference only and do not constitute a part of this Seventh Supplemental Lease
and shall not affect the meaning, construction, interpretation or effect of this
Seventh Supplemental Lease.

          SECTION 10. EFFECTIVENESS OF THIS SEVENTH SUPPLEMENTAL LEASE. This
Seventh Supplemental Lease shall become effective upon delivery of and payment
for the Series 2002 Bonds.

          SECTION 11. EXECUTION OF COUNTERPARTS. This Seventh Supplemental Lease
may be simultaneously executed in several counterparts, each of which shall be
an original and all of which shall constitute but one and the same instrument.

                                      - 3 -
<Page>

          IN WITNESS WHEREOF, MEMPHIS-SHELBY COUNTY AIRPORT AUTHORITY and
FEDERAL EXPRESS CORPORATION have caused this Seventh Supplemental Lease to be
duly executed as of the date first above written.

                                   MEMPHIS-SHELBY COUNTY AIRPORT
                                    AUTHORITY

                                   By /s/ LARRY D. COX
                                      -----------------------------------------
ATTEST:                               President and Chief Executive Officer

/s/ JERRY L. MCMICHAEL
--------------------------------
Executive Vice President,
 Finance and Administration and
 Secretary/Treasurer

                                   FEDERAL EXPRESS CORPORATION

                                   By /s/ BURNETTA B. WILLIAMS
                                          ------------------------------------
                                   Name:  Burnetta B. Williams
ATTEST:                            Title: Vice President and Assistant Treasurer

/s/ ANDREW M. PAALBORG
--------------------------------
Secretary

                                      - 4 -
<Page>

STATE OF TENNESSEE   )
                     ) ss:
COUNTY OF SHELBY     )

          On this 19th day of June, 2002, before me appeared Larry D. Cox, to me
personally known, who, being by me duly sworn (or affirmed) did say that he is
the President and Chief Executive Officer of the Memphis-Shelby County Airport
Authority, and that the seal affixed to the foregoing instrument is the
corporate seal of said Authority, and that said instrument was signed and sealed
on behalf of said Authority, by authority of its Board of Commissioners and he
acknowledged said instrument to be the free act and deed of said Authority.

[SEAL]

                                     /s/ S.M. GARRETT, JR.
                                     -------------------------------------------
                                     Notary Public

                                     My Commission Expires: 11/16/02

                                      - 5 -
<Page>

STATE OF TENNESSEE   )
                     ) ss:
COUNTY OF SHELBY     )

          On this 19th day of June, 2002, before me appeared Burnetta B.
Williams, to me personally known, who, being by me duly sworn (or affirmed) did
say that she is Vice President and Assistant Treasurer of Federal Express
Corporation, and that the seal affixed to the foregoing instrument is the
corporate seal of said Corporation, and that said instrument was signed and
sealed on behalf of said Corporation by authority of its Board of Directors and
she acknowledged said instrument to be the free act and deed of said
Corporation.

[SEAL]

                                     /s/ JUDITH L. TWELE
                                     -------------------------------------------
                                     Notary Public

                                     My Commission Expires: 2/26/03

                                      - 6 -<Page>

                                                                    EXHIBIT 10.4

                  FIRST AMENDMENT TO FIVE-YEAR CREDIT AGREEMENT

     FIRST AMENDMENT, dated as of September 27, 2002 (this "AMENDMENT"), to the
FIVE-YEAR CREDIT AGREEMENT dated as of September 28, 2001 ("CREDIT AGREEMENT"),
among FEDEX CORPORATION, the LENDERS party thereto, JPMORGAN CHASE BANK, as
Administrative Agent, CITICORP USA, INC. and BANK OF AMERICA, N.A., as
Co-Syndication Agents, and BANK ONE, NA, COMMERZBANK A.G., BANK OF
TOKYO-MITSUBISHI TRUST COMPANY and THE ROYAL BANK OF SCOTLAND PLC, as
Co-Documentation Agents.

                              W I T N E S S E T H:

     WHEREAS, pursuant to the Credit Agreement, the Borrower has requested that
the Lenders agree, and the Lenders have agreed, to extend credit to the Borrower
subject to the terms and conditions contained therein;

     WHEREAS, the Borrower has requested that the Lenders amend the Credit
Agreement in certain ways; and

     WHEREAS, the Lenders and the Borrower desire to amend the Credit Agreement
in the manner specified herein.

     NOW, THEREFORE, the parties hereto hereby agree as follows:

          1.   DEFINED TERMS. Terms defined in the Credit Agreement and used
herein shall have the meanings given to them in the Credit Agreement.

          2.   AMENDMENTS TO SECTION 1.01 OF THE CREDIT AGREEMENT (DEFINED
TERMS).

          (a) Section 1.01 is hereby amended by adding the following new
definitions in the appropriate alphabetical order:

          "INSUFFICIENCY" means, with respect to any Plan, the amount, if any,
     by which the present value of the benefits under such Plan exceeds the fair
     market value of the assets of such Plan allocable to such benefits, as
     determined using such reasonable actuarial assumptions and methods as are
     specified in the accountant's report attached to the most recent annual
     report (Form 5500 Series) filed with respect to such Plan.

          "TERMINATION EVENT" means (i) a Reportable Event, (ii) the
     distribution of a notice of intent to terminate a Plan pursuant to Section
     4041(c)(1) of ERISA or the treatment of a Plan amendment as a termination
     under Section 4041(e) of ERISA, (iii) the institution of proceedings to
     terminate a Plan by the PBGC under Section 4042 of ERISA, or (iv) any other
     event or condition that, as reasonably determined by the Borrower in good
     faith, is reasonably likely to constitute grounds under Section 4042 of
     ERISA for the termination of, or the appointment of a trustee to
     administer, any Plan.

<Page>

          (b) Section 1.01 is hereby amended by deleting the definition of
"Unfunded Liabilities".

          3.   AMENDMENT TO SECTION 7 OF THE CREDIT AGREEMENT (EVENTS OF
DEFAULT). Section 7(n) is hereby amended by replacing it in its entirety with
the following:

                  (n)   any Termination Event with respect to a Plan shall have
          occurred or the sum of the Insufficiency of all Single Employer Plans
          is equal to or greater than $80,000,000; or

          4.   CONDITIONS TO EFFECTIVENESS. This Amendment shall become
effective on the date (the "AMENDMENT EFFECTIVE DATE") on which the Borrower and
the Required Lenders shall have executed and delivered this Amendment to the
Administrative Agent. The Administrative Agent shall notify the Borrower and the
Lenders of the Amendment Effective Date, and such notice shall be conclusive and
binding.

          5.   REPRESENTATION AND WARRANTIES. To induce the Lenders to enter
into this Amendment, the Borrower hereby represents and warrants to the Lenders
that:

               (a) REAFFIRMATION. As of the Amendment Effective Date and after
     giving effect to this Amendment, the representations and warranties set
     forth in Article V of the Credit Agreement are true and correct in all
     material respects; and

               (b) NO DEFAULT. As of the Amendment Effective Date and after
     giving effect to this Amendment, no Default or Event of Default shall have
     occurred and be continuing.

          6.   PAYMENT OF EXPENSES. The Borrower agrees to pay or reimburse the
Administrative Agent for all its reasonable out-of-pocket costs and expenses
incurred in connection with the development, preparation and execution of, and
any amendment, supplement or modification to, this Amendment and any other
documents prepared in connection herewith or therewith, and the consummation and
administration of the transactions contemplated hereby and thereby, including
the reasonable fees and disbursements of counsel to the Administrative Agent as
separately agreed by the Administrative Agent and the Borrower.

          7.   COUNTERPARTS. This Amendment may be executed by one or more of
the parties to this Amendment on any number of separate counterparts, and all of
said counterparts taken together shall be deemed to constitute one and the same
instrument. A set of the copies of this Amendment signed by all the parties
shall be lodged with the Borrower and the Administrative Agent.

<Page>

          8.   SEVERABILITY; HEADINGS. Any provision of this Amendment which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. The section and
subsection headings used in this Amendment are for convenience of reference only
and are not to affect the construction hereof or to be taken into consideration
in the interpretation hereof.

          9.   CONTINUING EFFECT OF OTHER DOCUMENTS. This Amendment shall not
constitute an amendment or waiver of any other provision of the Credit Agreement
not expressly referred to herein and shall not be construed as a waiver or
consent to any further or future action on the part of the Borrower that would
require a waiver or consent of the Lenders or the Administrative Agent. Except
as expressly amended, modified and supplemented hereby, the provisions of the
Credit Agreement are and shall remain in full force and effect.

          10.  GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

                      [BALANCE OF PAGE INTENTIONALLY BLANK]

<Page>

          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.

                                     FEDEX CORPORATION, as Borrower

                                     By: /s/ Burnetta B. Williams
                                        ------------------------------------
                                        Title: Staff Vice-President and
                                               Assistant Treasurer

                                     JPMORGAN CHASE BANK,
                                     as Administrative Agent and as a Lender

                                     By: /s/ Matthew H. Massie
                                        ------------------------------------
                                        Title: Managing Director

                                     BANK OF AMERICA, N.A., as a Co-Syndication
                                     Agent and as a Lender

                                     By: /s/ Sharon Burks Horos
                                        ------------------------------------
                                        Title: Vice President

                                     BANK ONE, NA., as a Co-Documentation Agent
                                     and as a Lender

                                     By: /s/ Christopher C. Cavaiani
                                        ------------------------------------
                                        Title: Director

                                     CITICORP USA, INC., as a Co-Syndication
                                     Agent and as a Lender

                                     By: /s/ Gaylord C. Holmes
                                        ------------------------------------
                                        Title: Vice President

<Page>

                                     COMMERZBANK A.G., New York Branch, as a
                                     Co-Documentation Agent and as a Lender

                                     By: /s/ Subash R. Viswanathan
                                        ------------------------------------
                                        Title: Senior Vice President

                                     By: /s/ Brian Campbell
                                        ------------------------------------
                                        Title: Senior Vice President

                                     THE ROYAL BANK OF SCOTLAND PLC,
                                     as a Co-Documentation Agent and as a Lender

                                     By: /s/ David Apps
                                        ------------------------------------
                                        Title: Senior Vice President

                                     BANK OF TOKYO-MITSUBISHI TRUST COMPANY, as
                                     a Co-Documentation Agent and as a Lender

                                     By: /s/ Eduardo P. Abello
                                        ------------------------------------
                                        Title: Assistant Vice President

                                     THE BANK OF NOVA SCOTIA,
                                     as a Lender

                                     By: /s/ N. Bell
                                        ------------------------------------
                                        Title: Senior Manager

                                     KBC BANK, N.V.,
                                     as a Lender

                                     By: /s/ Robert Snauffer
                                        ------------------------------------
                                        Title: First Vice President

                                     By: /s/ Eric Raskin
                                        ------------------------------------
                                        Title: Vice President

<Page>

                                     KREDITANSTALT FUR WIEDERAUFBAU,
                                     as a Lender

                                     By: /s/ M. Nosbusch
                                        ------------------------------------
                                        Title: Vice President

                                     By: /s/ Wolf Muth
                                        ------------------------------------
                                        Title: Vice President

                                     MELLON BANK, N.A., as a Lender

                                     By: /s/ Mark F. Johnston
                                        ------------------------------------
                                        Title: Vice President

                                     SUMITOMO MITSUI BANKING CORPORATION,
                                     as a Lender

                                     By: /s/ Bob Granfelt
                                        ------------------------------------
                                        Title: Vice President and Manager

                                     REGIONS BANK, as a Lender

                                     By: /s/ David L. Waller
                                        ------------------------------------
                                        Title: Vice President Corporate Banking

                                     MIZUHO CORPORATE BANK, LIMITED,
                                     as a Lender

                                     By: /s/ James W. Masters
                                        ------------------------------------
                                        Title: Senior Vice President

                                     KEYBANK NATIONAL ASSOCIATION,
                                     as a Lender

                                     By: /s/ Mary K. Young
                                        ------------------------------------
                                        Title: Vice President

<Page>

                                     MERRILL LYNCH BANK USA,
                                     as a Lender

                                     By: /s/ D. Kevin Imlay
                                        ------------------------------------
                                        Title: Senior Credit Officer

                                     UNION PLANTERS BANK, N.A.,
                                     as a Lender

                                     By: /s/ B. Gordin McMurtry
                                        ------------------------------------
                                        Title: Senior Vice President

                                     AMSOUTH BANCORPORATION,
                                     as a Lender

                                     By: /s/ S. Floyd Harvey, III
                                        ------------------------------------
                                        Title: Senior Vice President

                                     THE BANK OF NEW YORK,
                                     as a Lender

                                     By: /s/ Steven P. Cavaluzzo
                                        ------------------------------------
                                        Title: Vice President

                                     CREDIT SUISSE FIRST BOSTON,
                                     as a Lender

                                     By: /s/ Joel Glodowski
                                        ------------------------------------
                                        Title: Managing Director

                                     By: /s/ Guy M. Baron
                                        ------------------------------------
                                        Title: Associate

<Page>

                                     FIRST TENNESSEE BANK NATIONAL
                                     ASSOCIATION, as a Lender

                                     By: /s/ James H. Moore, Jr.
                                        ------------------------------------
                                        Title: Senior Vice President

                                     WACHOVIA BANK, N.A.,
                                     as a Lender

                                     By: /s/ Andrew Payne
                                        ------------------------------------
                                        Title: Director

                                     INTESABCI, NEW YORK BRANCH,
                                     as a Lender

                                     By: /s/ Frank Maffei
                                        ------------------------------------
                                        Title: Vice President

                                     By: /s/ J. Dickerhof
                                        ------------------------------------
                                        Title: Vice President

                                     THE NORTHERN TRUST COMPANY,
                                     as a Lender

                                     By: /s/ Tracy J. Toulouse
                                        ------------------------------------
                                        Title: Vice President

                                     SUNTRUST BANK, INC.,
                                     as a Lender

                                     By: /s/ Bryan W. Ford
                                        ------------------------------------
                                        Title: Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]