Document:

Exhibit 10.2

 

SECOND AMENDMENT TO FIVE-YEAR CREDIT AGREEMENT

 

SECOND AMENDMENT, dated as
of January 27, 2004 (this “Amendment”), to the FIVE-YEAR CREDIT
AGREEMENT, dated as of September 28, 2001 (as amended, supplemented or
otherwise modified, the “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 the manner specified
herein; and

 

WHEREAS, the Lenders are
willing to amend the Credit Agreement in the manner and subject to the
conditions 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). Section 1.01 of the Credit Agreement
is hereby amended by adding the following new definitions in the appropriate
alphabetical order:

 

“Acquisition”
means any acquisition by any means, in one transaction or a series of related
transactions, by the Borrower or any of its Subsidiaries of (a) the Capital
Stock of any Person so long as, after giving effect to such acquisition, such
Person becomes a Subsidiary of the Borrower, (b) all or substantially all of
the assets of any other Person or (c) all or substantially all of the assets
constituting a business unit or business of any other Person.

 

“Capital
Markets Transaction” means the issuance or sale by the Borrower or any of
its Subsidiaries in a registered public offering, Rule 144A/Regulation S
transaction or private placement of Capital Stock (including equity-linked
securities) or notes, debentures, instruments or other debt securities with a
maturity in excess of one year, in each case to the extent any such issuance or
sale or series of related issuances or sales results in Net Cash Proceeds to
the Borrower and its Subsidiaries of at least $25,000,000; provided
that, any such issuance or sale of Capital Stock of the Borrower pursuant to
any equity compensation plans or arrangements shall not constitute a “Capital
Markets Transaction.”

 

 

“Capital
Stock” means any and all shares, interests, participations or other
equivalents (however designated) of capital stock of a corporation, any and all
equivalent ownership interests in a Person (other than a corporation) and any
and all warrants, rights or options to purchase any of the foregoing.

 

“Existing
Guarantee Agreements” means, collectively, the 364-Day Guarantee Agreement,
the Letter of Credit Guarantee Agreement and the New Guarantee Agreement.

 

“Letter
of Credit Agreement” means the Amended and Restated Letter of Credit
Agreement, dated as of November 15, 2002, among the Borrower, the banks party
thereto and SunTrust Bank, as administrative agent, as amended, supplemented or
otherwise modified from time to time.

 

“Letter
of Credit Guarantee Agreement” means that certain Guaranty of the
obligations under the Letter of Credit Agreement, dated as of November 15,
2002, as amended, supplemented or otherwise modified from time to time.

 

“Net
Cash Proceeds” means, in connection with any Capital Markets Transaction,
the actual cash proceeds received from the related issuance or sale, net of
attorneys' fees, investment banking fees, accountants' fees, underwriting
discounts and commissions and other customary fees and expenses actually
incurred in connection therewith.

 

“New
Credit Agreement” means the Credit Agreement, dated as of February 11,
2004, among the Borrower, the lenders party thereto and JPMorgan Chase Bank, as
administrative agent, as amended, supplemented or otherwise modified from time
to time.

 

“New
Guarantee Agreement” means that certain Guaranty of the obligations under
the New Credit Agreement dated as of February 11, 2004, as amended,
supplemented or otherwise modified from time to time.

 

“Second
Amendment” means the Second Amendment, dated as of January 27, 2004, to
this Agreement, among the Borrower, the lenders party thereto and JPMorgan
Chase Bank, as administrative agent.

 

3.             Amendment to Section 3.06 of the
Credit Agreement (Litigation and Environmental Matters).  Section 3.06(c) of the Credit Agreement is
hereby amended by inserting the words “as of the date hereof” immediately
following the words “the Borrower and its Significant Subsidiaries have no
material contingent obligations” in such Section.

 

4.             Amendment to Section 3.07 of the
Credit Agreement (Subsidiaries). 
Section 3.07 of the Credit Agreement is hereby amended by amending and
restating such Section in its entirety to read as follows:

 

SECTION
3.07.  Subsidiaries.  Schedule 3.07 hereto contains an
accurate list of all of the Significant Subsidiaries of the Borrower as of the
date hereof, setting forth their respective jurisdictions of incorporation and
the percentage of their respective capital stock owned by the Borrower or other
Subsidiaries.  All of the issued and

 

2

 

outstanding shares of
capital stock of such Significant Subsidiaries have been duly authorized and
issued and are fully paid and non-assessable.

 

5.             Amendment to Section 4.02 of the
Credit Agreement (Each Credit Event). 
Section 4.02(a) of the Credit Agreement is hereby amended by amending
and restating such Section to read in its entirety as follows:

 

(a)  The representations and warranties of the
Borrower (which are set forth in Article III of this Agreement) shall be true
and correct on and as of the date of such Borrowing (except to the extent that
any such representation or warranty expressly relates to a specified earlier
date, in which case such representation or warranty shall be true and correct
as of such earlier date).

 

6.             Amendment to Section 5.12 of the
Credit Agreement (Guarantee Agreement). 
Section 5.12(b) of the Credit Agreement is hereby amended by inserting the
words “after giving effect to any Acquisitions” immediately following the words
“of the Borrower and the consolidated Subsidiaries for such immediately
preceding fiscal year” in such Section.

 

7.             Amendment to Section 6 of the
Credit Agreement (Negative Covenants). 
Section 6 of the Credit Agreement is hereby amended by adding at the end
of such Section the following new Section 6.10:

 

SECTION 6.10.                 Guarantee
Agreement Confirmation.  The
Borrower shall deliver to the Administrative Agent a confirmation of the
Guarantee Agreement with respect to the Second Amendment in form and substance
reasonably satisfactory to the Administrative Agent, executed by each
Guarantor, on or prior to February 27, 2004.

 

8.             Amendment to Section 6.02 of the
Credit Agreement (Restricted Investments). 
Clause (z) of Section 6.02(i) is hereby amended by amending and
restating such clause to read in its entirety as follows:

 

(z)  the aggregate amount of the net cash
proceeds (other than any Net Cash Proceeds of any Capital Markets Transaction
used to replace the New Credit Agreement) received by the Borrower during the
Computation Period from the sale of its stock and Indebtedness of the Borrower
convertible into stock of the Borrower (but only to the extent that any such
Indebtedness has been converted into shares of such stock during such period),
and

 

9.             Amendment to Section 6.05 of the
Credit Agreement (Loans, Advances and Investments).  Section 6.05 of the Credit Agreement is
hereby amended by adding the following new clause (f) in the appropriate order
(and by redesignating the existing clause (f) as clause (g)):

 

(f)  Acquisitions, provided that no Default or
Event of Default shall have occurred or be continuing or would result
therefrom; and

 

3

 

10.           Amendment to Section 6.06 of the
Credit Agreement (Contingent Liabilities). 
Section 6.06(a) of the Credit Agreement is hereby amended by amending
and restating such Section to read in its entirety as follows:

 

(a)  the Guarantee Agreement and the Existing
Guarantee Agreements;

 

11.           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.

 

12.           Representations 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 III of the Credit Agreement are true and correct in all material
respects (except to the extent that any such representation or warranty
expressly relates to a specified earlier date, in which case such
representation or warranty shall be true and correct as of such earlier date);

 

(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; and

 

(c)  Consent of Guarantors.  No consent is required from any Guarantor
under the Guarantee Agreement in connection with the amendment of the Credit
Agreement as contemplated by this Amendment.

 

13.           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.

 

14.           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.

 

15.           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

 

4

 

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.

 

16.           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.

 

17.           Waiver and Release.  The Lenders hereby agree that the Borrower
shall have the right, by giving written notice to the Administrative Agent, to
cause Federal Express International (France) SNC (the “French Subsidiary”)
to be released as a Guarantor under the Guarantee Agreement (the “Release”),
at which point the French Subsidiary shall automatically be released from all
of its obligations under the Guarantee Agreement; provided that (i) no
Default or Event of Default has occurred and is continuing or would occur as a
result of such Release and (ii) such Release will not affect the obligations of
the Borrower pursuant to Section 5.12(b) of the Credit Agreement.

 

18.          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]

 

5

 

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

  	
   

  
	
   

  	
   

  	
  Name:

  	
  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

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Matthew H. Massie

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
					

 

 

	
   

  	
  AMSOUTH BANK

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ S. Floyd
  Harvey III

  	
   

  
	
   

  	
   

  	
  Name:

  	
  S. Floyd Harvey III

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President 

  
					

 

 

	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Sharon Burks
  Horos

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Sharon Burks Horos

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

	
   

  	
  BANK OF TOKYO-MITSUBISHI TRUST

  COMPANY

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Christian
  Giordano 

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Christian Giordano

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

	
   

  	
  BANK ONE, NA

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Christopher
  C. Cavaiani 

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Christopher C. Cavaiani

  
	
   

  	
   

  	
  Title:

  	
  Director

  
					

 

 

	
   

  	
  CITICORP USA, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Gaylord
  Holmes 

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Gaylord Holmes

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

	
   

  	
  COMMERZBANK AG, NEW YORK

  AND GRAND CAYMAN BRANCHES 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Harry P.
  Yergey 

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Harry P. Yergey

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President and

  Manager

  
					

 

 

	
   

  	
  COMMERZBANK AG, NEW YORK

  AND GRAND CAYMAN BRANCHES 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Subash R.
  Viswanathan 

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Subash R. Viswanathan

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

 

	
   

  	
  CREDIT SUISSE FIRST BOSTON,

  acting through its Cayman Islands Branch 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Karl Studer

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Karl Studer

  
	
   

  	
   

  	
  Title:

  	
  Director

  
						

 

 

	
   

  	
  DVB BANK AG

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Marc Cho

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Marc Cho

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christian Wulf 

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Christian Wulf

  
	
   

  	
   

  	
  Title:

  	
  Vice President 

  
						

 

 

	
   

  	
  FIFTH THIRD BANK

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ David J.
  Hicks

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David J. Hicks

  
	
   

  	
   

  	
  Title:

  	
  Vice President 

  
					

 

 

	
   

  	
  FIRST TENNESSEE BANK NATIONAL

  ASSOCIATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ James H.
  Moore, Jr.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James H. Moore, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President 

  
					

 

 

	
   

  	
  KBC BANK, N.V., New York Branch

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Jean-Pierre
  Diels 

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jean-Pierre Diels

  
	
   

  	
   

  	
  Title:

  	
  First Vice President 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric Raskin

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Eric Raskin

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
						

 

 

	
   

  	
  KEYBANK NATIONAL ASSOCIATION 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Francis W. Lutz, Jr.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Francis W. Lutz, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Vice President 

  
					

 

 

	
   

  	
  KFW BANKENGRUPPE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Carmen Berger

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Carmen Berger

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Markus Zechannig

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Markus Zechannig

  
	
   

  	
   

  	
  Title:

  	
  Senior Project Manager 

  
						

 

 

	
   

  	
  MELLON BANK, N.A.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark F. Johnston 

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Mark F. Johnston

  
	
   

  	
   

  	
  Title:

  	
  First Vice President 

  
					

 

 

	
   

  	
  MERRILL LYNCH BANK USA 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Louis Alder

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Louis Alder

  
	
   

  	
   

  	
  Title:

  	
  Director

  
					

 

 

	
   

  	
  MORGAN STANLEY BANK

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel Twenge

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Daniel Twenge

  
	
   

  	
   

  	
  Title:

  	
  Vice President 

  
					

 

 

	
   

  	
  REGIONS BANK 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Phillip L. May

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Phillip L. May

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

 

	
   

  	
  SUMITOMO MITSUI BANKING

  CORPORATION 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter Knight

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Peter Knight

  
	
   

  	
   

  	
  Title:

  	
  Joint General Manager 

  
					

 

 

	
   

  	
  SUNTRUST BANK 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bryan W. Ford

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Bryan W. Ford

  
	
   

  	
   

  	
  Title:

  	
  Director 

  
					

 

 

	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David T. Sunderwirth

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David T. Sunderwirth

  
	
   

  	
   

  	
  Title:

  	
  Vice President 

  
					

 

 

	
   

  	
  THE BANK OF NOVA SCOTIA

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William E. Zarrett

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William E. Zarrett

  
	
   

  	
   

  	
  Title:

  	
  Managing Director 

  
					

 

 

	
   

  	
  THE NORTHERN TRUST COMPANY 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ashish S. Bhagwat

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Ashish S. Bhagwat

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

	
   

  	
  THE ROYAL BANK OF SCOTLAND PLC 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ David Apps

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David Apps

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

 

	
   

  	
  UNION PLANTERS BANK, N.A.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James R. Gummel

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James R. Gummel

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President 

  
					

 

 

	
   

  	
  WACHOVIA BANK, N.A.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas T. Davis

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Douglas T. Davis

  
	
   

  	
   

  	
  Title:

  	
  DirectorExhibit 10.3

 

FIRST AMENDMENT TO

AMENDED AND RESTATED 364-DAY CREDIT AGREEMENT

 

FIRST
AMENDMENT, dated as of January 27, 2004 (this “Amendment”), to the
AMENDED AND RESTATED 364-DAY CREDIT AGREEMENT, dated as of September 27, 2002
(as amended, supplemented or otherwise modified, the “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 the
manner specified herein; and

 

WHEREAS, the
Lenders are willing to amend the Credit Agreement in the manner and subject to
the conditions 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). Section 1.01 of the
Credit Agreement is hereby amended by adding the following new definitions in
the appropriate alphabetical order:

 

“Acquisition” means any acquisition by
any means, in one transaction or a series of related transactions, by the
Borrower or any of its Subsidiaries of (a) the Capital Stock of any Person so
long as, after giving effect to such acquisition, such Person becomes a
Subsidiary of the Borrower, (b) all or substantially all of the assets of any
other Person or (c) all or substantially all of the assets constituting a
business unit or business of any other Person.

 

“Capital Markets Transaction” means
the issuance or sale by the Borrower or any of its Subsidiaries in a registered
public offering, Rule 144A/Regulation S transaction or private placement of
Capital Stock (including equity-linked securities) or notes, debentures,
instruments or other debt securities with a maturity in excess of one year, in each
case to the extent any such issuance or sale or series of related issuances or
sales results in Net Cash Proceeds to the Borrower and its Subsidiaries of at
least $25,000,000; provided that, any such issuance or sale of Capital
Stock of the Borrower pursuant to any 

 

 

equity compensation plans or arrangements shall not constitute a
“Capital Markets Transaction.”

 

“Capital Stock” means any and all
shares, interests, participations or other equivalents (however designated) of
capital stock of a corporation, any and all equivalent ownership interests in a
Person (other than a corporation) and any and all warrants, rights or options
to purchase any of the foregoing.

 

“Existing Guarantee Agreements” means,
collectively, the Five-Year Guarantee Agreement, the Letter of Credit Guarantee
Agreement and the New Guarantee Agreement.

 

“First Amendment” means the First
Amendment, dated as of January 27, 2004, to this Agreement, among the Borrower,
the lenders party thereto and JPMorgan Chase Bank, as administrative agent.

 

“Letter of Credit Agreement” means the
Amended and Restated Letter of Credit Agreement, dated as of November 15, 2002,
among the Borrower, the banks party thereto and SunTrust Bank, as
administrative agent, as amended, supplemented or otherwise modified from time
to time.

 

“Letter of Credit Guarantee Agreement”
means that certain Guaranty of the obligations under the Letter of Credit
Agreement, dated as of November 15, 2002, as amended, supplemented or otherwise
modified from time to time.

 

“Net Cash Proceeds” means, in
connection with any Capital Markets Transaction, the actual cash proceeds
received from the related issuance or sale, net of attorneys’ fees, investment
banking fees, accountants’ fees, underwriting discounts and commissions and other
customary fees and expenses actually incurred in connection therewith.

 

“New Credit Agreement” means the
Credit Agreement, dated as of February 11, 2004, among the Borrower, the
lenders party thereto and JPMorgan Chase Bank, as administrative agent, as amended,
supplemented or otherwise modified from time to time.

 

“New Guarantee Agreement” means that
certain Guaranty of the obligations under the New Credit Agreement dated as of
February 11, 2004, as amended, supplemented or otherwise modified from time to
time.

 

3.             Amendment to
Section 3.06 of the Credit Agreement (Litigation and Environmental Matters).  Section 3.06(c) of the Credit Agreement
is hereby amended by inserting the words “as of the date hereof” immediately
following the words “the Borrower and its Significant Subsidiaries have no
material contingent obligations” in such Section.

 

4.             Amendment to
Section 3.07 of the Credit Agreement (Subsidiaries).  Section 3.07 of the Credit Agreement is
hereby amended by amending and restating such Section in its entirety to read
as follows:

 

2

 

SECTION 3.07.  Subsidiaries.  Schedule
3.07 hereto contains an accurate list of all of the Significant
Subsidiaries of the Borrower as of the date hereof, setting forth their
respective jurisdictions of incorporation and the percentage of their
respective capital stock owned by the Borrower or other Subsidiaries.  All of the issued and outstanding shares of
capital stock of such Significant Subsidiaries have been duly authorized and
issued and are fully paid and non-assessable.

 

5.             Amendment to
Section 4.02 of the Credit Agreement (Each Credit Event).  Section 4.02(a) of the Credit Agreement is
hereby amended by amending and restating such Section to read in its entirety
as follows:

 

(a)  The representations and
warranties of the Borrower (which are set forth in Article III of this
Agreement) shall be true and correct on and as of the date of such Borrowing
(except to the extent that any such representation or warranty expressly
relates to a specified earlier date, in which case such representation or
warranty shall be true and correct as of such earlier date).

 

6.             Amendment to
Section 5.12 of the Credit Agreement (Guarantee Agreement).  Section 5.12(b) of the Credit Agreement is
hereby amended by inserting the words “after giving effect to any Acquisitions”
immediately following the words “of the Borrower and the consolidated
Subsidiaries for such immediately preceding fiscal year” in such Section.

 

7.             Amendment to Section
6 of the Credit Agreement (Negative Covenants).  Section 6 of the Credit Agreement is hereby amended by adding at
the end of such Section the following new Section 6.10:

 

SECTION 6.10.      Guarantee Agreement
Confirmation.  The Borrower shall
deliver to the Administrative Agent a confirmation of the Guarantee Agreement
with respect to the First Amendment in form and substance reasonably
satisfactory to the Administrative Agent, executed by each Guarantor, on or
prior to February 27, 2004.

 

8.             Amendment to Section
6.02 of the Credit Agreement (Restricted Investments).  Clause (z) of Section 6.02(i) is hereby
amended by amending and restating such clause to read in its entirety as
follows:

 

(z)  the aggregate amount of the
net cash proceeds (other than any Net Cash Proceeds of any Capital Markets
Transaction used to replace the New Credit Agreement) received by the Borrower
during the Computation Period from the sale of its stock and Indebtedness of
the Borrower convertible into stock of the Borrower (but only to the extent
that any such Indebtedness has been converted into shares of such stock during
such period), and

 

9.             Amendment to
Section 6.05 of the Credit Agreement (Loans, Advances and Investments).  Section 6.05 of the Credit Agreement is
hereby amended by adding the following new clause (f) in the appropriate order
(and by redesignating the existing clause (f) as clause (g)):

 

3

 

(f)  Acquisitions, provided that
no Default or Event of Default shall have occurred or be continuing or would
result therefrom; and

 

10.           Amendment to Section
6.06 of the Credit Agreement (Contingent Liabilities).  Section 6.06(a) of the Credit Agreement is
hereby amended by amending and restating such Section to read in its entirety
as follows:

 

(a)  the Guarantee Agreement and
the Existing Guarantee Agreements;

 

11.           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.

 

12.           Representations 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 III of the Credit Agreement are true and correct in all material
respects (except to the extent that any such representation or warranty
expressly relates to a specified earlier date, in which case such
representation or warranty shall be true and correct as of such earlier date);

 

(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; and

 

(c)  Consent of Guarantors.  No consent is required from any
Guarantor under the Guarantee Agreement in connection with the amendment of the
Credit Agreement as contemplated by this Amendment.

 

13.           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.

 

14.           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.

 

15.           Severability;
Headings.  Any provision of this
Amendment which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the

 

4

 

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.

 

16.           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.

 

17.           Waiver and Release.  The Lenders hereby agree that the Borrower
shall have the right, by giving written notice to the Administrative Agent, to
cause Federal Express International
(France) SNC (the “French Subsidiary”) to be released as a Guarantor
under the Guarantee Agreement (the “Release”), at which point the French
Subsidiary shall automatically be released from all of its obligations under
the Guarantee Agreement; provided that (i) no Default or Event of Default
has occurred and is continuing or would occur as a result of such Release and
(ii) such Release will not affect the obligations of the Borrower pursuant to
Section 5.12(b) of the Credit Agreement.

 

18.          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]

 

5

 

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

  	
   

  
	
   

  	
   

  	
  Name:

  	
  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

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Matthew H. Massie

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
							

 

 

	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Sharon Burks Horos

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Sharon Burks Horos

  
	
   

  	
   

  	
  Title:

  	
   Vice President

  
						

 

 

	
   

  	
  BANK OF TOKYO-MITSUBISHI TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Christian Giordano

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Christian Giordano

  
	
   

  	
   

  	
  Title:

  	
   Vice President

  
					

 

 

	
   

  	
  BANK ONE, NA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Christopher C. Cavaiani

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Christopher C. Cavaiani

  
	
   

  	
   

  	
  Title:

  	
   Director

  
						

 

 

	
   

  	
  CITICORP USA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Gaylord Holmes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Gaylord Holmes

  
	
   

  	
   

  	
  Title:

  	
   Vice President

  
					

 

 

	
   

  	
  COMMERBANK AG, NEW YORK

  AND GRAND CAYMAN BRANCHES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Harry P. Yergey

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Harry P. Yergey

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President and 

  Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMMERBANK AG, NEW YORK 

  AND GRAND CAYMAN BRANCHES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Subash R. Viswanathan

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Subash R. Viswanathan

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
						

 

 

	
   

  	
  CREDIT SUISSE FIRST BOSTON,

  acting through its Cayman Islands Branch

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Karl Studer

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Karl Studer

  
	
   

  	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Andreas M. Rupp

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Andreas M. Rupp

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  
								

 

 

	
   

  	
  DVB BANK AG

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Marc Cho

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Marc Cho

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Christian Wulf

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Christian Wulf

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
								

 

 

	
   

  	
  FIFTH THIRD BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ David J. Hicks

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David J. Hicks

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
						

 

 

	
   

  	
  FIRST TENNESSEE BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ James H. Moore, Jr.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James H. Moore, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

 

	
   

  	
  HSBC BANK USA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Bryan R. DeBroka,

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Bryan R. DeBroka, #13351 

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

	
   

  	
  KBC BANK, N.V., New York Branch

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Jean-Pierre Diels

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jean-Pierre Diels 

  
	
   

  	
   

  	
  Title:

  	
  First Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Eric Raskin

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Eric Raskin

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
							

 

 

	
   

  	
  KEYBANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
    

  	
  By:

  	
   /s/ Francis W. Lutz, Jr.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Francis W. Lutz, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
						

 

 

	
   

  	
  KFW BANKENGRUPPE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Carmen Berger

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Carmen Berger

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  
	
   

  	
  By:

  	
   /s/ Markus Zechannig

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Markus Zechannig

  
	
   

  	
   

  	
  Title:

  	
  Senior Project Manager

  
								

 

 

 

	
   

  	
  MELLON BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Mark F. Johnston

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Mark F. Johnston 

  
	
   

  	
   

  	
  Title:

  	
  First Vice President

  
					

 

 

	
   

  	
  MERRILL LYNCH BANK USA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Louis Alder

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Louis Alder  

  
	
   

  	
   

  	
  Title:

  	
  Director

  
					

 

 

	
   

  	
  MORGAN STANLEY BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Daniel Twenge

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Daniel Twenge

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

	
   

  	
  REGIONS BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Phillip L. May

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Phillip L. May 

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

 

	
   

  	
  SUMITOMO MITSUI BANKING

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Peter Knight

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Peter Knight

  
	
   

  	
   

  	
  Title:

  	
  Joint General Manager

  
					

 

 

	
   

  	
  SUNTRUST BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Bryan W. Ford

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Bryan W. Ford 

  
	
   

  	
   

  	
  Title:

  	
  Director

  
					

 

 

	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ David T. Sunderwirth

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David T. Sunderwirth

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

	
   

  	
  THE BANK OF NOVA SCOTIA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ William E. Zarrett

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William E. Zarrett 

  
	
   

  	
   

  	
  Title:

  	
  Managing  Director

  
						

 

 

	
   

  	
  THE NORTHERN TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Ashish S. Bhagwat

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Ashish S. Bhagwat 

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

	
   

  	
  THE ROYAL BANK OF SCOTLAND PLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ David Apps

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David Apps 

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  
						

 

 

	
   

  	
  UNION PLANTERS BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ James R. Gummel

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James R. Gummel

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
						

 

 

	
   

  	
  WACHOVIA BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Douglas T. Davis

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Douglas T. Davis

  
	
   

  	
   

  	
  Title:

  	
  Director

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