Document:

Exhibit 10.6

Exhibit 10.6

MANAGEMENT RETENTION AGREEMENT

THIS MANAGEMENT RETENTION AGREEMENT (this “Agreement”) is entered into this
 _____ 

day of

 _____, 20___, between FedEx Corporation, a Delaware corporation (the “Corporation”), and

 _____ (the “Executive”).

WHEREAS, the Executive currently serves as
 _____ 
of the Corporation; and

WHEREAS, the Corporation considers the establishment and maintenance of a sound and vital
management to be essential to protecting and enhancing the best interests of the Corporation and
its stockholders; and

WHEREAS, the Board of Directors of the Corporation (the “Board”) has determined that it is in
the best interests of the Corporation and its stockholders to secure the Executive’s continued
services and to ensure the Executive’s continued dedication and objectivity in the event of any
threat or occurrence of, or negotiation or other action that could lead to or create the
possibility of, a Change of Control (as defined in Section 2) of the Corporation, without concern
as to whether the Executive might be hindered or distracted by personal uncertainties and risks
created by any such possible Change of Control, and to encourage the Executive’s full attention and
dedication to the Corporation, the Board has authorized the Corporation to enter into this
Agreement;

WHEREAS, the Corporation and the Executive entered into that certain Management Retention
Agreement dated December 23, 2008 (the “Old MRA”); and

WHEREAS, the Corporation and the Executive desire to enter into this Agreement, which
shall supersede and replace the Old MRA.

NOW, THEREFORE, for and in consideration of the premises and the mutual covenants and
agreements herein contained, the Corporation and the Executive agree as follows:

1. Operation of Agreement.

(a) The “Effective Date” shall be the date during the Change of Control Period (as defined in
Section 1(b)) on which a Change of Control occurs. Anything in this Agreement to the contrary
notwithstanding, if the Executive’s employment with the Corporation terminates within six months
prior to the date on which a Change of Control occurs, and the Executive can reasonably demonstrate
that the termination:

(1) was at the request of a third party who has taken steps reasonably calculated to effect a
Change of Control, or

(2) was directly related to, arose in connection with or occurred in anticipation of, such
Change of Control,

then for all purposes of this Agreement the “Effective Date” shall mean the date immediately prior
to the date of such termination.

 

 

 

(b) The “Change of Control Period” is the period commencing on the date of this Agreement and
ending on the first anniversary of such date; provided, however, that commencing on
the date one year after the date of this Agreement, and on each annual anniversary of that date
(such date and each annual anniversary thereof is referred to as the “Renewal Date”), the Change of
Control Period will be automatically extended for an additional one-year period unless at least 30
days, but not more than 90 days, prior to the Renewal Date the Corporation gives the Executive
notice that the Change of Control Period will not be extended. The Corporation may not give the
Executive any non-extension notice, however, during any period of time when the Board has knowledge
that any person has taken steps reasonably calculated to effect a Change of Control of the Corporation
until, in the Board’s opinion, such person has abandoned or terminated its efforts to
effect a Change of Control.

(c) As used in this Agreement, the term “affiliates”
includesaffiliate”
means any company controlling, controlled by or under common control with the Corporation. All
references in Sections 5, 7(a) and 7(b) to the Corporation shall include the Corporation’s
affiliates.

2. Change of Control.

For purposes of this Agreement, a “Change of Control” means the occurrence of any of the
following during the Change of Control Period:

(a) Any “person” (as such term is used in Sections 13(d) and 14 of the Securities Exchange Act
of 1934, as amended), other than (1) the Corporation, (2) any subsidiary of the Corporation, (3)
any employee benefit plan (or a trust forming a part thereof) maintained by the Corporation or any
subsidiary of the Corporation, (4) any underwriter temporarily holding securities of the
Corporation pursuant to an offering of such securities or (5) any person in connection with a
transaction described in clauses (1), (2) and (3) of Section (2)(b) below, becomes the “beneficial
owner” (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended) of
securities of the Corporation representing 30% or more of the total voting power of the
Corporation’s then outstanding voting securities, unless such securities (or, if applicable,
securities that are being converted into voting securities) are acquired directly from the
Corporation in a transaction approved by a majority of the Incumbent Board (as defined in Section
2(d) below).

 

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(b) The consummation of a merger, consolidation or reorganization with or into the Corporation
or in which securities of the Corporation are issued, or the sale or other disposition, in one
transaction or a series of transactions, of all or substantially all of the assets of the
Corporation (a “Corporate Transaction”), unless:

(1) the stockholders of the Corporation immediately before such Corporate Transaction will
own, directly or indirectly, immediately following such Corporate Transaction, at least 60% of the
total voting power of the outstanding voting securities of the corporation or other entity
resulting from such Corporate Transaction (including a corporation or other entity that acquires
all or substantially all of the Corporation’s assets, the “Surviving Company”) or the ultimate
parent company thereof in substantially the same proportion as their ownership of the voting
securities of the Corporation immediately before such Corporate Transaction;

(2) the individuals who were members of the Board immediately prior to the execution of the
agreement providing for such Corporate Transaction constitute a majority of the members of the
board of directors or equivalent governing body of the Surviving Company or the ultimate parent
company thereof; and

(3) no person, other than (i) the Corporation, (ii) any subsidiary of the Corporation, (iii)
any employee benefit plan (or a trust forming a part thereof) maintained by the Corporation or any
subsidiary of the Corporation, (iv) the Surviving Company, (v) any subsidiary or parent company of
the Surviving Company, or (vi) any person who, immediately prior to such Corporate Transaction, was
the beneficial owner of securities of the Corporation representing 30% or more of the total voting
power of the Corporation’s then outstanding voting securities, is the beneficial owner of 30% or
more of the total voting power of the then outstanding voting securities of the Surviving Company
or the ultimate parent company thereof.

(c) The stockholders of the Corporation approve a complete liquidation or dissolution of the
Corporation.

(d) Directors who, as of the date of this Agreement, constitute the Board (the “Incumbent
Board”) cease to constitute at least a majority of the Board (or, in the event of any merger,
consolidation or reorganization the principal purpose of which is to change the Corporation’s state
of incorporation, form a holding company or effect a similar reorganization as to form, the board
of directors of such surviving company or its ultimate parent company); provided,
however, that any individual becoming a member of the Board subsequent to the date of this
Agreement whose election, or nomination for election by the Corporation’s stockholders, was
approved by a vote of a majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a result of either an
actual or threatened proxy contest relating to the election of directors.

Notwithstanding the foregoing, a Change of Control will not be deemed to occur solely because
any person (a “Subject Person”) becomes the beneficial owner of more than the permitted amount of
the outstanding voting securities of the Corporation as a result of the acquisition of voting
securities by the Corporation which, by reducing the number of voting securities outstanding,
increases the proportional number of voting securities beneficially owned by the Subject Person,
provided, that if a Change of Control would occur (but for the operation of this sentence)
as a result of the acquisition of voting securities by the Corporation, and after such acquisition
by the Corporation, the Subject Person becomes the beneficial owner of any additional voting
securities that increases the percentage of the then outstanding voting securities
beneficially owned by the Subject Person to 30% or more of the total voting power, then a
Change of Control will have occurred.

 

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3. Employment Period.

The Corporation agrees to continue the Executive in its employ, and the Executive agrees to
remain in the Corporation’s employ, for the period commencing on the Effective Date and ending on
the third second anniversary of such date (the “Employment Period”).

4. Position and Duties.

(a) During the Employment Period:

(1) the Executive’s position (including status, offices, titles and reporting relationships),
authority, duties and responsibilities shall be at least commensurate in all material respects with
the most significant of those held, exercised and assigned at any time during the 90-day period
immediately preceding the Effective Date; and

(2) the Executive’s services will be performed at the location where the Executive was
employed immediately preceding the Effective Date or any office or location less than 35 miles from
such location.

(b) Excluding periods of vacation and sick leave to which the Executive is entitled, the
Executive agrees to devote reasonable attention and time during normal business hours to the
Corporation’s business and affairs and, to the extent necessary to discharge the responsibilities
assigned to the Executive under this Agreement, to use the Executive’s reasonable best efforts to
perform faithfully and efficiently these responsibilities. The Executive may:

(1) serve on corporate, civic or charitable boards or committees;

(2) deliver lectures, fulfill speaking engagements or teach at educational institutions; and

(3) manage personal investments,

so long as such activities do not significantly interfere with the performance of the Executive’s
responsibilities. It is expressly understood and agreed that, to the extent that any such
activities have been conducted by the Executive prior to the Effective Date, the continued conduct
of these activities (or the conduct of activities similar in nature and scope) subsequent to the
Effective Date will not thereafter be deemed to interfere with the performance of the Executive’s
responsibilities to the Corporation.

 

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5. Compensation.

(a) Base Salary. During the Employment Period, the Executive will receive a base
salary (“Base Salary”) at a monthly rate at least equal to the highest monthly base salary paid to
the Executive by the Corporation and any of its affiliates during the 12-month period immediately
preceding the month in which the Effective Date occurs. During the Employment Period, the Base
Salary will be reviewed at least annually and will be increased at any time and from time to time
as will be consistent with increases in base salary awarded in the ordinary course of business to
other keypeer executives of the Corporation. Any increase in the Base Salary will
not serve to limit or reduce any other obligation to the Executive under this Agreement. The Base
Salary will not be reduced after any such increase and the term Base Salary as used in this
Agreement shall refer to the Base Salary as so increased. As used in this Agreement, the term
“affiliates” includes any company controlling, controlled by or under common control with the
Corporation.

(b) Annual Bonus. In addition to the Base Salary, the Executive will be awarded, for
each of the Corporation’s fiscal years (a “Fiscal Year”) ending during the Employment Period,
the Executive will be eligible to receive payment in cash of an annual bonus (an “Annual
Bonus”) (either pursuant to a bonus, profit sharing or incentive plan or program of the Corporation
or otherwise) in cash at least equal to the average annual bonus paid or payable to the Executive
during the three Fiscal Years immediately prior to the Fiscal Year in whichan amount and
pursuant to terms and conditions no less favorable to the Executive, including target performance
goals not materially more difficult to achieve, than the most favorable in effect at any time
during the 90-day period immediately preceding the Effective Date occurs (or for such lesser
number of full Fiscal Years prior to the Effective Date for which the Executive was eligible to
earn such a bonus, and annualized with respect to any such Fiscal Year for which the Executive has
been employed only during a portion thereof)or, if more favorable to the Executive, as may be
available at any time thereafter to other peer executives of the Corporation. Each such Annual
Bonus that is earned will be payable within the first 60 days of the Fiscal Year next
following the Fiscal Year for which the Annual Bonus is awarded.

(c) Incentive, Savings and Retirement Plans. During the Employment Period, the
Executive will be entitled to participate in all incentive, savings and retirement plans,
practices, policies and programs applicable to other peer executives of the Corporation (including,
without limitation, the Corporation’s qualified and non-qualified pension, profit sharing,
long-term performance bonus, restricted stock and stock option plans, in each case comparable to
those in effect or as subsequently amended), but in no event will these plans, practices, policies
and programs provide the Executive with compensation, benefits and reward opportunities less
favorable, in the aggregate, than the most favorable of those provided by the Corporation for the
Executive under such plans, practices, policies and programs as in effect at any time during the
90-day period immediately preceding the Effective Date or, if more favorable to the Executive, as
provided at any time thereafter with respect to other peer executives of the Corporation and its
affiliates.

(d) Welfare Benefit Plans. During the Employment Period, the Executive and/or the
Executive’s family, as the case may be, will be eligible for participation in and shall receive all
benefits under the welfare benefit plans, practices, policies and programs provided by the
Corporation (including, without limitation, medical, prescription, dental, vision, disability,
salary continuance, employee life, group life, accidental death and travel accident
insurance plans and programs), in each case comparable to those in effect at any time during the
90-day period
immediately preceding the Effective Date which would be most favorable to the Executive or, if more
favorable to the Executive, as in effect at any time thereafter with respect to other peer
executives of the Corporation and its affiliates.

 

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(e) Expenses. During the Employment Period, the Executive will be entitled to receive
prompt reimbursement for all reasonable expenses incurred by the Executive in accordance with the
most favorable policies, practices and procedures of the Corporation in effect for the Executive at
any time during the 90-day period immediately preceding the Effective Date or, if more favorable to
the Executive, as in effect at any time thereafter with respect to other peer executives of the
Corporation and its affiliates.

(f) Fringe Benefits. During the Employment Period, the Executive will be entitled to
fringe benefits in accordance with the most favorable plans, practices, programs and policies of
the Corporation in effect for the Executive at any time during the 90-day period immediately
preceding the Effective Date or, if more favorable to the Executive, as in effect at any time
thereafter with respect to other peer executives of the Corporation and its affiliates.

(g) Office and Staff Support. During the Employment Period, the Executive will be
entitled to an office or offices of a size and with furnishings and other appointments, and to
secretarial and other assistance, at least equal to thosethe most favorable provided to the
Executive by the Corporation at any time during the 90-day period immediately preceding the
Effective Date which would be most favorable to the Executive or, if more favorable to the
Executive, as provided at any time thereafter with respect to other peer executives of the
Corporation and its affiliates.

(h) Vacation. During the Employment Period, the Executive will be entitled to paid
vacation in accordance with the most favorable plans, policies, programs and
practices of the Corporation as in effect for the Executive at any time during the 90-day
period immediately preceding the Effective Date or, if more favorable to the Executive, as in
effect at any time thereafter with respect to other peer executives of the Corporation and its
affiliates.

6. Termination.

(a) Death or Disability. This Agreement will terminate automatically upon the
Executive’s death during the Employment Period. The Corporation may terminate this Agreement,
after having established the Executive’s Disability (as defined below) during the Employment
Period, by giving to the Executive written notice of its intention to terminate the Executive’s
employment. In such case, the Executive’s employment with the Corporation will terminate effective
on the 180th day after receipt of such notice (the “Disability Effective Date”),
provided, that within 180 days after such receipt, the Executive shall not have returned to
full-time performance of the Executive’s duties. For purposes of this Agreement, “Disability”
means absence from the full-time performance of the Executive’s duties pursuant to a determination
made in accordance with the procedures established by the Corporation under the Corporation’s
long-term disability benefits plan (as in effect as of the Effective Date) that the Executive is
disabled as a result of incapacity due to physical or mental illness.

 

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(b) Cause. During the Employment Period, the Corporation may terminate the
Executive’s employment for “Cause.” For purposes of this Agreement, “Cause” means:

(1) any act or acts of dishonesty taken by the Executive and intended to result in substantial
personal enrichment of the Executive;

(2) repeated material violations by the Executive of the Executive’s obligations under Section
4 of this Agreement:

(i) which are demonstrably willful and deliberate on the Executive’s part (which violations
occur other than as a result of incapacity due to the Executive’s physical or mental illness), and

(ii) which result in demonstrably material economic injury to the Corporation and which are
not remedied in a reasonable period of time after receipt of written notice from the Corporation
specifying such breach; or

(3) the conviction of the Executive of a felony.

Notwithstanding anything to the contrary set forth in this Agreement, “Cause” will not exist,
however, unless and until the Corporation has delivered to the Executive a copy of a resolution
duly adopted by at least three-quarters (3/4) of the Board and, to the extent applicable,
at least three-quarters (3/4) of the Incumbent Board, if any, at a meeting of the Board
called and held for such purpose (after reasonable notice to the Executive and an opportunity for
the Executive, together with his counsel, to be heard before the Board), finding that in the good
faith opinion of the Board, the Executive was guilty of the conduct set forth in this Section 6(b)
and specifying the particulars in detail.

(c) Good Reason. TheDuring the Employment Period, the Executive’s employment
may be terminated by the Executive for Good Reason within the two-year period following the date of
the initial existence of the event or circumstances constituting Good Reason(as defined
below). For purposes of this Agreement, “Good Reason” means:

(1) a material diminution in the Executive’s authority, duties or responsibilities with the
Corporation, including, without limitation, a reduction in the level of the Executive’s reporting
responsibility as it existedfrom those in effect immediately prior to the Effective Date
(such as the Executive being required to;

(2) a material diminution in the authority, duties or responsibilities of the
Executive’s reporting responsibility as it existedsenior from those in effect immediately
prior to the Effective Date, including a requirement that the Executive report to an officer or
employee of the Corporation instead of reporting directly to the Board);

(3) a material failure by the Corporation to comply with any of the provisions of Section 5 of
this Agreement;

 

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(4) a material change in the office
orgeographic location at which the
Corporation requires the Executive to be based during the Employment Period, except for travel
reasonably required in the performance of the Executive’s responsibilities;

(45) any purported termination by the Corporation of the Executive’s employment
otherwise than as expressly permitted by this Agreement, it being understood that any such
purported termination will not be effective for any purpose of this Agreement; or

(56) any material failure by the Corporation to comply with and satisfy Section 13 of
this Agreement;

provided, however, that the Executive will have Good Reason to terminate
employment only if (i) the Executive provides notice to the Corporation of the existence of the
event or circumstances constituting Good Reason specified in any of the preceding clauses within 90
days of the initial existence of such event or circumstances, and (ii) the Corporation does not
remedy such event or circumstances within 30 days following receipt by the Corporation of such
notice.

(d) Notice of Termination. Any termination by the Corporation for Cause or by the
Executive for Good Reason will be communicated by a Notice of Termination (as defined below)
to the other party, given in accordance with Section 15(b) below. For purposes of this
Agreement, a “Notice of Termination” means a written notice which:

(1) indicates the specific termination provision(s) in this Agreement relied upon;

(2) to the extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive’s employment under the
provision(s) so indicated; and

(3) if the Date of Termination (as defined in Section 6(e) below) is other than the date of
receipt of such notice, specifies the Date of Termination (which date shall be not more than 15
days after the giving of such notice (except as provided in Section 6(e) of this Agreement)).

(e) Date of Termination. “Date of Termination” means: (1) the effective date
on whichif the Executive’s employment is terminated by the Corporation terminates
as specified in afor Cause or by the Executive for Good Reason, the date of receipt of the
Notice of Termination by the Corporation or the Executiveor any later date specified therein in
accordance with Section 6(d)(3) above, as the case may be,; (2) if the Executive’s
employment is terminated by the Corporation other than for Cause, the date specified in the notice
from the Corporation to the Executive regarding such termination, (which notice shall be given
in accordance with Section 15(b) below), provided that such date shall be no earlier than 30 days
following the date on which such notice is received; (3) if the Executive voluntarily
terminates employment (excluding a termination for Good Reason), the date on which the Executive
notifiesgives notice to the Corporation (which notice shall be given in accordance with
Section 15(b) below) of such termination (or such later date as agreed to by the Executive
and the Corporation),; or (4) if the Executive’s employment by the Corporation terminates
by reason of death, the date of the Executive’s death. Notwithstanding the previous sentence, if
the Executive’s employment is terminated for Disability (as defined in Section 6(a)), or the
Executive’s employment is terminated by the Corporation other than for Cause, then such Date of
Termination will be no earlier than 30 days following the date on which a Notice of Termination or
other notice is received.

 

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7. Obligations of the Corporation Upon Termination.

(a) Death. If the Executive’s employment terminates during the Employment Period by
reason of the Executive’s death, the Corporation will not have any further obligations to the
Executive’s legal representatives under this Agreement, other than those obligations accrued
hereunder at the date of the Executive’s death. Anything to the contrary notwithstanding, the
Executive’s family shall be entitled to receive benefits at least equal to the most favorable
benefits provided by the Corporation to surviving families of peer executives of the Corporation
under such plans, programs and policies relating to family death benefits, if any, as in effect at
any time during the 90-day period immediately preceding the Effective Date or, if more favorable to
the Executive’s estate and/or the Executive’s family, as in effect on the date of the Executive’s
death with respect to other peer executives of the Corporation
and its affiliates and their
families.

(b) Disability. If the Executive’s employment is terminated during the Employment
Period by reason of the Executive’s Disability, the Executive will be entitled after the Disability
Effective Date to receive disability and other benefits at least equal to the most favorable of
those provided by the Corporation to disabled executives and/or their families in accordance with
such plans, programs and policies relating to disability, if any, as in effect at any time during
the 90-day period immediately preceding the Effective Date or, if more favorable to the Executive
and/or the Executive’s family, as in effect at any time thereafter with respect to other peer
executives of the Corporation and its affiliates and their families.

(c) Cause; Other Than For Good Reason. If the Executive’s employment is terminated by
the Corporation for Cause, or if the Executive voluntarily terminates employment during the
Employment Period, excluding a termination for Good Reason, the Corporation will pay the Executive
his full Base Salary through the Date of Termination at the rate in effect at the time Notice of
Termination or other notice is given and shall have no further obligations to the Executive under
this Agreement.

(d) Qualifying Termination. If during the Employment Period the Executive suffers a
“separation from service” (as defined in Treasury Regulation §1.409A-1(h)) because his employment
is terminated either (1) by the Corporation other than for Cause
or, Disability or
by reason of the Executive’s death or (2) by the
Executive for Good Reason (each, a
“Qualifying Termination”), then, on the date that is six months after the Date of Termination (or,
if earlier than the end of such six-month period, within 30 days following the date of the
Executive’s death), the Corporation will pay to the Executive (except as provided below) as
compensation for services rendered to the Corporation:

(1) A lump-sum cash amount equal to the sum of:

(i) the Executive’s unpaid Base Salary through the Date of Termination (at the rate in effect
on the Date of Termination or, if higher, at the highest rate in effect at any time within the
90-day period preceding the Effective Date); plus

 

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(ii) that portion of the target Annual Bonus under the Corporation’s incentive compensation
plans or any similar plans or programs then in effect determined by multiplying the target Annual
Bonus by the fraction arrived at by dividing the number of full weeks for which the Executive was
employed during the Fiscal Year in which his Date of Termination occurred by 52; plus

(iii) a pro rata portion of the target payments under the Corporation’s long-term performance
bonus (“LTI”) plans, or any similar plans or programs then in effect, adopted with respect to the
current Fiscal Year and with respect to each of the immediately two preceding Fiscal Years. In
each case, the pro rata portion of the LTI payment shall be determined by dividing the number of
full weeks for which the Executive was employed since the beginning of the Fiscal Year with respect
to which the relevant LTI plan was adopted to his Date of Termination by 156; plus (iv)

any unpaid vacation under the Corporation’s vacation policy in effect at the Date of
Termination (or, if more favorable to the Executive, under any vacation policy of the Corporation
in effect at any time within the 90-day period preceding the Effective Date).

(2) A lump-sum cash amount equal to the sum of:

(i) threetwo times the Executive’s highest annual rate of Base Salary in effect during
the 12-month period prior to the Date of Termination; plus

(ii) threetwo times
the Executive’s target annual bonus in effect for the
Fiscal Year in which the Change of Control occurs; plus (iii) three times the target LTI payment
for the Fiscal Year in which the Change of Control occurs.

Any amount paid to the Executive pursuant to this Section 7(d)(2) shall be offset by any other
amount of severance relating to salary or bonus continuation to be received by the Executive upon
termination of the Executive’s employment under any other severance plan, policy, employment
agreement or arrangement of the Corporation.

(3) A lump sum cash amount equal to the excess of (i) the actuarial present value as of the
Date of Termination of the benefits that would be accrued under the FedEx Corporation Employees’
Pension Plan and the FedEx Corporation Retirement Parity Pension Plan determined by assuming that
(A) the Executive has earned an additional 36 months of the Executive’s highest annual rate of Base
Salary in effect during the 12-month period prior to the Date of Termination and target annual
bonus in effect for the Fiscal Year in which the Change of Control occurs and (B) the Executive is
credited with an additional 36 months of age and service under such plans, over (ii) the actuarial
present value of the actual benefits accrued by the Executive as
of the Date of Termination under such plans without the assumptions set forth in clauses (A) and
(B) of this Section (7)(d)(3).

 

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For purposes of determining actuarial present value under this Section 7(d)(3): (i) the most
current Mortality Table (assuming a blend of 50 percent of male mortality rates and 50 percent of
female mortality rates) shall be utilized; and (ii) the interest rate on 30-year U.S. Treasury
securities for the month of May preceding the Fiscal Year in which the Date of Termination occurs
shall be used (such rate is the “applicable interest rate” under Section 417(e)(3)(A)(ii)(II) of
the Internal Revenue Code). (4) A lump sum cash amount equal to the Corporation’s cost (determined
as of the Date of Termination) of 36 months of coverage under

(e) If during the Employment Period the employment of the Executive shall
terminate by reason of a Qualifying Termination, then for a period ending on the earliest of (1) 18
months following the Date of Termination and (2) the commencement date of equivalent benefits from
a new employer, the Corporation will continue to keep in full force and effect each plan and
policy providing medical, dental, and vision, accident, disability and life coverage with
respect to the Executive and his covered dependents,
determined at the same coverage level and upon
the same terms as in effect immediately prior to the Date of Termination or the Corporation
will provide coverage that is equivalent to such plans and policies. The Executive and the
Corporation will share the costs of such coverage in the same proportion as such costs were shared
immediately prior to the Date of Termination or, if more favorable to the Executive, at any time
within the 90-day period prior to the Effective Date.

8. Consequence of a Change of Control Upon Certain Entitlements.

(a) Except as provided herein, the consequences of a Change of Control on the Executive’s
stock options, restricted stock awards, or any other award or grant of stock or rights to purchase
the stock of the Corporation (by option, warrant or otherwise) and pension, retirement, bonus,
long-term incentive or any other similar benefits, will be determined in accordance with the
provisions of the applicable plans, programs, policies and agreements in effect on the
Effective Date.

(b) (1) No later than 30 days following the occurrence of a Change of Control, the Corporation
will fund in full that portion, if any, of its obligations to the Executive under the FedEx
Corporation Retirement Parity Pension Plan that are then unfunded. Such funding will be provided
through an irrevocable domestic “rabbi” trust for the benefit of the Executive, which will be
established as promptly as possible following the Effective Date for the purpose of receiving
contributions from the Corporation to fund such obligations.

(2) No later than 30 days following the occurrence of a Change of Control, the Corporation
will fund its obligations to provide payments and benefits under this Agreement (other than the
obligations which are provided for in Section 8(b)(1)) by the establishment of an irrevocable
domestic “rabbi” trust for the benefit of the Executive to which it contributes an
amount sufficient to meet its obligations. The trust described in this Section 8(b)(2) may be part
of the trust described in Section 8(b)(1).

 

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(3) Any trust created pursuant to this Section 8 will provide for distribution of amounts to
the Executive in order to pay taxes, if any, that become due prior to payment of amounts pursuant
to the trust. Following the occurrence of a Change of Control, the Corporation will make periodic
additional contributions (no less frequently than annually) to keep the trust fully funded. The
intent is that no later than the date 30 days following the Change of Control and annually
thereafter (the “Applicable Dates”) the amount of such fund will equal at least the then present
value (determined as of each Applicable Date) of any amounts subject to the funding requirement of
Section 8(b)(1) as determined by a nationally recognized firm qualified to provide actuarial
services and to fully fund the payments and benefits described in Section 8(b)(2). The
establishment and funding of any such trust will not affect the Corporation’s obligation to provide
the benefits being funded.

(4) The trust(s) may be terminated in accordance with the trust agreement between the
Corporation and the trustee and, if so terminated, the Corporation will not be required to
establish a successor trust under this Section 8(b). The trust described in this Section 8(b) may
be part of a trust funding similar obligations for other employees of the Corporation or its
affiliates.

9. Non-exclusivity of Rights.

Nothing in this Agreement will prevent or limit the Executive’s continuing or future
participation in any benefit, bonus, incentive or other plan, program, policy or practice provided
by the Corporation or any of its affiliates and for which the Executive may qualify, nor, subject
to Section 15(f), will anything in this Agreement limit or otherwise affect such rights as the
Executive may have under any stock option, stock warrant, restricted stock, pension, bonus,
long-term incentive award or other contracts, agreements, plans or programs with or of the
Corporation or any of its affiliates. Amounts which are vested benefits or which the Executive is
otherwise entitled to receive under any plan, policy, practice or program of, or any contract or
agreement with, the Corporation or any of its affiliates at or subsequent to the Date of
Termination will be payable in accordance with such plan, policy, practice, program, contract or
agreement except as explicitly modified by this Agreement.

10. No Set-off; No Mitigation.

The Corporation’s obligation to make the payments provided for in this Agreement and otherwise
to perform its obligations will not be affected by any circumstances, including, without
limitation, any set-off, counterclaim, recoupment, defense or other claim, right or action which
the Corporation may have against the Executive or any other person. In no event will the Executive
be obligated to seek other employment or take any other action by way of mitigation of the amounts
payable to the Executive under any of the provisions of this Agreement, nor will the amount of any
payment under this Agreement be reduced, except as otherwise specifically provided herein, by any
compensation earned by the Executive as a result of employment by another employer.

 

12

 

11. Tax Payment.

11. Withholdings and Deductions; Excise Taxes.

(a) Withholdings and Deductions. Any payment made pursuant to Section 7(d) will be
paid, less standard withholdings and other deductions authorized by the Executive or required by
law.

(b) Gross-up for CertainExcise Taxes.

(1) Subject to the provisions of Section 11(f) of this Agreement, all determinations required
to be made under this Section 11, including whether and when a Gross-up Payment (as defined below)
is required and the amount of such Gross-up Payment and the assumptions to be utilized in arriving
at such determination, will be made by a nationally recognized public accounting firm (other than
the firm serving as the accountant or auditor for the individual, entity or group effecting the
Change of Control) that is designated by the Corporation (the “Accounting Firm”), which will
provide detailed supporting calculations both to the Corporation and the Executive within 15
business days of the receipt of notice from the Executive that there has been a Payment (as defined
below), or such earlier time as is requested by the Corporation (collectively, a “Determination”).
All fees and expenses of the Accounting Firm will be borne solely by the Corporation. (2) Anything
in this Agreement to the contrary notwithstanding and except as set forth below, if it is
determined by the Accounting Firm that any payment, distribution or other benefit (including any
acceleration of vesting of any benefit) received or deemed received by the Executive from the
Corporation and its affiliates pursuant to this Agreement or otherwise (whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined
without regard to any Gross-up Payment required by this Section 11) (a “Payment”) is or will become
subject to any excise tax imposed by Section 4999 of the Internal Revenue Code or any similar tax
payable under any United States federal, state, local or other law (such excise tax and all such
similar taxes, together with any interest and penalties imposed in respect thereto, are referred to
in this Agreement as the “Excise Taxes”), then the Corporation will pay the Executive within five
days of receipt of the Determination, and in no event later than the end of the calendar year in
which the Executive pays such taxes, an amount (the “Gross-up Payment”) such that the net amount
retained by the Executive, after the deduction of any Excise Taxes on the Payments, and any
federal, state and local income tax, Medicare and any Excise Tax (including any applicable interest
and penalties on all such taxes) upon such Gross-up Payment, will be equal to the amount of the
Payments in the absence of the imposition of such Excise Taxes and the Gross-up Payment.

 

13

 

In the event that any payment, distribution or benefit (including any acceleration of vesting
of any benefit) received, deemed received or to be received by or for the benefit of the Executive
in connection with his “separation from service” (as defined in Treasury Regulation §1.409A-1(h))
with the Corporation whether pursuant to this Agreement or otherwise (a “Payment”) would (1)
constitute a parachute payment within the meaning of Section 280G of the Internal Revenue Code of
1986, as amended (the “Code”) or any similar or successor provision to Section 280G and (2) but for
this Section 11(b), be subject to the excise tax imposed by Section 4999 of the Code or any similar or successor provision to Section
4999 (such excise tax, together with any interest or penalties imposed in respect thereto, the
“Excise Tax”), then such Payments shall be reduced to the largest amount which would result in no
portion of the Payments being subject to the Excise Tax. In the event any reduction of benefits is
required pursuant to this Agreement, the Executive shall be allowed to choose which benefits
hereunder (or under another agreement or plan, program or policy of the Corporation) are reduced
(e.g., reduction first from continued health care benefits under Section 7(e), then from the cash
payments under Section 7(d)(2)). Any determination as to whether a reduction is required under
this Agreement and as to the amount of the reduction shall be made in writing by a nationally
recognized public accounting firm (other than the firm serving as the accountant or auditor for the
individual, entity or group effecting the Change of Control) that is appointed for this purpose by
the Corporation (the “Accounting Firm”) prior to, or immediately following, the Effective Date,
whose determination shall be conclusive and binding upon the Corporation and the Executive for all
purposes. If the Internal Revenue Service (the “IRS”) determines that the Payments are subject to
the Excise Tax, then the Corporation or an affiliate, as its exclusive remedy, shall seek to
enforce the provisions of Section 11(c) hereof. Such enforcement of Section 11(c) below shall be
the only remedy, under any and all applicable state and federal laws or otherwise, for the
Executive’s failure to reduce the Payments so that no portion thereof is subject to the Excise Tax.
The Corporation or an affiliate shall reduce the Payments in accordance with this Section 11(b)
only upon written notice by the Accounting Firm indicating the amount of such reduction, if any
(which will include detailed supporting calculations). The Corporation shall bear all fees, costs
and expenses the Accounting Firm may incur in connection with any calculations contemplated by this
Agreement.

(c) Remedy. If, notwithstanding the reduction described in Section 11(b) above,
the IRS determines that the Executive is liable for the Excise Tax as a result of receipt of a
Payment, then the Executive shall, subject to the provisions of this Agreement, be obligated to pay
to the Corporation (the “Repayment Obligation”) an amount of money equal to the Repayment Amount
(as defined below). The “Repayment Amount” with respect to the Payments shall be the smallest such
amount, if any, as shall be required to be paid to the Corporation so that the Executive’s net
proceeds with respect to any Payments (after taking into account the payment of the Excise Tax
imposed on such Payments) shall be maximized. Notwithstanding the foregoing, the Repayment Amount
with respect to the Payments shall be zero if a Repayment Amount of more than zero would not
eliminate the Excise Tax imposed on such Payments. If the Excise Tax is not eliminated through the
performance of the Repayment Obligation, the Executive shall pay the Excise Tax. The Repayment
Obligation shall be performed within 30 days of either (1) the Executive’s entering into a binding
agreement with the IRS as to the amount of his Excise Tax liability or (2) a final determination by
the IRS or a decision of a court of competent jurisdiction requiring the Executive to pay the
Excise Tax with respect to the Payments from which no appeal is available or is timely taken.

 

14

 

(3) For purposes of determining the amount of the Gross-up Payment, the Executive will be
deemed to pay federal income taxes at the highest marginal rate of federal income
taxation in the calendar year in which the Gross-up Payment is to be made and local income taxes at
the highest marginal rates of taxation in the state and locality of his residence in such calendar
year.

(4) If the Accounting Firm determines that no Excise Tax is payable by the Executive, it will
furnish the Executive with a written opinion that failure to report the Excise Tax on the
Executive’s applicable federal income tax return will not result in the imposition of a negligence
or similar penalty.

(c) Determination by the Executive.

(1) If at any time within 90 days following determination of the Gross-up Payment by the
Accounting Firm, the Executive disputes the amount of the Gross-up Payment, the Executive may
accept the amount determined under Section 11(b) without prejudice and may elect to demand payment
of the additional amount which the Executive, in accordance with an opinion of counsel to the
Executive (“Executive Counsel Opinion”), determines to be the full Gross-up Payment. Any such
demand by the Executive shall be made by delivery to the Corporation of a written notice that
specifies the Gross-up Payment determined by the Executive and an Executive Counsel Opinion
regarding such Gross-up Payment (such written notice and opinion collectively, the “Executive’s
Determination”).

(2) Within 14 days after delivery of the Executive’s Determination to the Corporation, the
Corporation shall either (i) pay the Executive the additional Gross-up Payment set forth in the
Executive’s Determination or (ii) deliver to the Executive a certificate specifying the Gross-up
Payment determined by the Accounting Firm, together with an opinion of the Corporation’s counsel
(“Corporation Counsel Opinion”), and pay the Executive the Gross-up Payment specified in such
certificate (less the portion of such amount, if any, previously paid to the Executive by the
Corporation). If for any reason the Corporation fails to comply with clause (ii) of the preceding
sentence, the Gross-up Payment specified in the Executive’s Determination shall be controlling for
all purposes.

(d) Opinion of Counsel. “Executive Counsel Opinion” means a legal opinion of
nationally recognized executive compensation counsel that there is a reasonable basis to support a
conclusion that the Gross-up Payment determined by the Executive has been calculated in accordance
with this Section and applicable law. “Corporation Counsel Opinion” means a legal opinion of a
nationally recognized executive compensation counsel that (1) there is a reasonable basis to
support a conclusion that the Gross-up Payment set forth by the Accounting Firm has been calculated
in accordance with this Section and applicable law, and (2) there is no reasonable basis for the
calculation of the Gross-up Payment determined by the Executive.

 

15

 

(e) Additional Gross-up Amounts. If, despite the initial conclusion of the
Corporation and/or the Executive that certain Payments are neither subject to Excise Taxes nor to
be counted in determining whether other Payments are subject to Excise Taxes (any such item, a
“Non-Parachute Item”), it is later determined with finality (pursuant to subsequently-enacted
provisions of the Internal Revenue Code, final regulations or published rulings of the Internal
Revenue Service, a final judgment of a court of competent jurisdiction or a determination by the
Accounting Firm) that any of the Non-Parachute Items are subject to Excise Taxes, or are to be
counted in determining whether any Payments are subject to Excise Taxes, with the result that the
amount of Excise Taxes payable by the Executive is greater than the amount determined by the
Corporation or the Executive pursuant to this Section, as applicable, then, within 90 days of such
final determination, on a date determined by the Corporation, the Corporation shall pay the
Executive an additional Gross-up Payment in order to compensate the Executive for such additional
Excise Taxes, any interest, fines, penalties, expenses or other costs incurred by the Executive as
a result of having taken a position in accordance with a determination made pursuant to Section
11(b), and any federal, state and local income tax, Medicare and any Excise Tax upon such
additional Gross-up Payments, calculated in the manner described in Section 11(b).

(f) Amount Increased or Contested.

(1) The Executive shall notify the Corporation in writing of any claim by the Internal Revenue
Service or other taxing authority that, if successful, would require the payment by the Corporation
of a Gross-up Payment. Such notice shall include the nature of such claim and the date on which
such claim is due to be paid.

(2) The Executive shall give such notice as soon as practicable, but no later than ten
business days, after the Executive first obtains actual knowledge of such claim; provided,
however, that any failure by the Executive to give or delay in giving such notice shall
affect the Corporation’s obligations under this Section only if and to the extent that such failure
results in actual prejudice to the Corporation.

(3) The Executive shall not pay such claim less than 30 days after the Executive gives such
notice to the Corporation (or, if sooner, the date on which payment of such claim is due). If the
Corporation notifies the Executive in writing before the expiration of such period that it desires
to contest such claim, the Executive shall:

(i) give the Corporation any information that it reasonably requests relating to such claim;

(ii) take such action in connection with contesting such claim as the Corporation reasonably
requests in writing from time to time, including, without limitation, accepting legal
representation with respect to such claim by an attorney reasonably selected by the Corporation;

(iii) cooperate with the Corporation in good faith to contest such claim; and

(iv) permit the Corporation to participate in any proceedings relating to such claim;

provided, however, that the Corporation shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection with such contest and
shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax, income
tax
or employment tax, including related interest and penalties, imposed as a result of such
representation and payment of costs and expenses.

 

16

 

(4) Without limiting the foregoing, the Corporation shall control all proceedings in
connection with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing authority in respect
of such claim and may, at its sole option, either direct the Executive to pay the tax claimed and
sue for a refund or contest the claim in any permissible manner.

(5) The Executive agrees to prosecute such contest to a determination before any
administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as
the Corporation shall determine; provided, however, that if the Corporation directs
the Executive to pay such claim and sue for a refund, the Corporation shall advance the amount of
such payment to the Executive, on an interest-free basis, and shall indemnify the Executive, on an
after-tax basis, for any Excise Tax, income tax or employment tax, including related interest or
penalties, imposed with respect to such advance; and further provided, that any
extension of the statute of limitations relating to payment of taxes for the taxable year of the
Executive with respect to which such contested amount is claimed to be due is limited solely to
such contested amount. Furthermore, the Corporation’s control of the contest shall be limited to
issues with respect to which a Gross-up Payment would be payable hereunder and the Executive shall
be entitled to settle or contest, as the case may be, any other issue raised by the Internal
Revenue Service or other taxing authority.

(g) Refunds.

(1) If, after the receipt by the Executive of an amount advanced by the Corporation pursuant
to Section 11(f), the Executive becomes entitled to receive any refund with respect to such claim,
the Executive shall (subject to the Corporation’s complying with the requirements of Section
11(f)), within 90 days of a final determination of such entitlement, pay the Corporation the amount
of such refund (together with any interest paid or credited thereon after taxes applicable
thereto).

(2) If, after the receipt by the Executive of an amount advanced by the Corporation pursuant
to Section 11(f), a determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Corporation does not notify the Executive in writing of its
intent to contest such determination before the expiration of 30 days after such determination,
then such advance shall be forgiven and shall not be required to be refunded and the amount of such
advance shall offset, to the extent thereof, the amount of Gross-up Payment required to be paid.

(3) Any contest of a denial of refund shall be controlled by Section 11(f).

 

17

 

12. Confidential Information; Non-Competition; Release.

(a) Confidentiality.

(1) The Executive shall hold in a fiduciary capacity for the benefit of the Corporation all
Confidential Information (as defined below) relating to the Corporation or any of its affiliates
and their respective businesses, which shall have been obtained by the Executive during the
Executive’s employment by the Corporation or any of its affiliates.

(2) “Confidential Information” means any non-public, proprietary information that may provide
the Corporation or any of its affiliates with a competitive advantage, including, without
limitation, any trade secrets, formulas, flow charts, computer programs and codes (including,
without limitation, any source codes), or other systems information, business, product or marketing
plans, sales and other forecasts, financial information, customer lists and information relating to
compensation and benefits, provided that such proprietary information does not include any
information which is available to the general public or is generally available within the relevant
business or industry other than as a result of the Executive’s breach of this Section 12(a).

(3) Confidential Information may be in any medium or form, including, without limitation,
physical documents, computer files, drives or discs, videotapes, audiotapes and oral
communications.

(4) Anything herein to the contrary notwithstanding, it shall not be a violation of this
Section 12(a) for the Executive to disclose information in the ordinary course of properly carrying
out his duties and responsibilities on behalf of the Corporation or to respond to an order of a
court or other body having jurisdiction provided that he gives the Corporation prior notice of any
such order. In no event shall an asserted violation of the provisions of this Section 12(a)
constitute a basis for deferring or withholding any amounts otherwise payable to the Executive
under this Agreement.

(b) Non-Competition.

(1) The Executive agrees that he shall not for a period of one year following the Date of
Termination, directly or indirectly own, manage, operate, join, control, be employed by, or
participate in the ownership, management, operation or control of or be connected in any manner,
including but not limited to, holding the positions of officer, director, shareholder, consultant,
independent contractor, employee, partner or investor, with any Competing Enterprise (as defined
below); provided, however, that the Executive may invest, without being deemed in
violation of this Section 12(b), in stocks, bonds or other securities of any corporation or other
entity (but without participating in the business thereof) if such stocks, bonds or other
securities are listed for trading on a national securities exchange or NASDAQ and the Executive’s
investment does not exceed 1% of the issued and outstanding shares of capital stock, or in the case
of bonds or other securities, 1% of the aggregate principal amount thereof issued and outstanding.

 

18

 

(2) For purposes of this Agreement, the term “Competing Enterprise” shall mean an enterprise
that engages in any business that, on the Date of Termination, is engaged in by the Corporation or
by any of its affiliates if such enterprise engages in such business in any geographic areas in
which the Corporation or any of its affiliates conducts such business.

(c) Return of Property. Except as expressly provided herein, promptly following the
Executive’s termination of employment, the Executive shall return to the Corporation all property
of the Corporation then in the Executive’s possession or under his control, except that the
Executive may retain his personal notes, diaries, Rolodexes (whether in electronic form or
otherwise), calendars and correspondence so long as any Confidential Information therein is
conveyed to the Corporation in a tangible medium prior to the Executive’s termination of
employment.

(d) Irreparable Injury. The Executive agrees that any breach of the terms of this
Section 12 would result in irreparable injury and damage to the Corporation for which the
Corporation would have no adequate remedy at law. The Executive further agrees that in the event
of said breach or any reasonable threat of breach, the Corporation shall be entitled to an
immediate injunction and restraining order to prevent such breach or threatened breach. The terms
of this Section 12(d) shall not prevent the Corporation from pursuing any other available remedies
for any breach or threatened breach hereof, including but not limited to, the recovery of damages.
Should a court or arbitrator determine that any provision of this Section 12 is unreasonable, the
parties agree that such provision shall be interpreted and enforced to the maximum extent such
court or arbitrator deems reasonable.

(e) Release. In the event of a Qualifying Termination, the Executive agrees to
release the Corporation and its affiliates from any and all liabilities, claims and causes of
action arising from or in connection with his employment, or the termination of his employment, by
the Corporation, other than the obligations of the Corporation under this Agreement and except with
respect to the matters referenced in Sections 8(a) and 9 of this Agreement.

(f) Survival.

(1) The provisions of this Section 12 shall survive any termination of this Agreement and of
the Employment Period, and the existence of any claim or cause of action by the Executive against
the Corporation, whether predicated on this Agreement or otherwise, shall not constitute a defense
to the enforcement by the Corporation of the covenants and agreements of this Section.

(2) Anything in this Section 12(f) to the contrary notwithstanding, the provisions of Section
12(b) shall only apply in the event of:

(i) a termination of the Executive’s employment described in Section 1(a) hereof prior to the
occurrence of a Change of Control;

(ii) a termination of the Executive’s employment during the Employment Period that constitutes
a Qualifying Termination; or

(iii) a termination for Cause at any time during the Employment Period.

 

19

 

13. Successors; Binding Agreement.

(a) This Agreement shall not be terminated by any merger or consolidation of the Corporation
whereby the Corporation is or is not the surviving or resulting corporation or as a result of any
transfer of all or substantially all of the assets of the Corporation. In the event of any such
merger, consolidation or transfer of assets, the provisions of this Agreement shall be binding upon
the surviving or resulting corporation or the person or entity to which such assets are
transferred.

(b) The Corporation agrees that concurrently with any merger, consolidation or transfer of
assets referred to in Section 13(a) hereof, it will cause any successor or transferee
unconditionally to assume, by written instrument delivered to the Executive (or his beneficiary or
estate), all of the obligations of the Corporation hereunder.

(c) (1) No rights or obligations of the Corporation under this Agreement may be assigned or
transferred by the Corporation except that such rights or obligations may be assigned or
transferred pursuant to a merger or consolidation in which the Corporation is not the continuing
entity, or in connection with the sale or liquidation of all or substantially all of the assets of
the Corporation, or in connection with the disposition of all or substantially all of the assets of
the Corporation, or in connection with the disposition of the business of the Corporation
substantially as an entirety, provided that the assignee or transferee is the successor to all or
substantially all of the assets of the Corporation and such assignee or transferee assumes all of
the liabilities, obligations and duties of the Corporation under this Agreement, either
contractually or as a matter of law.

(2) This Agreement is personal to the Executive and, without the prior written consent of the
Corporation, shall not be assignable by the Executive otherwise than by will or the laws of descent
and distribution. This Agreement shall inure to the benefit of and be enforceable by the
Executive’s personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If the Executive shall die while any amounts would be payable
to the Executive hereunder had the Executive continued to live, all such amounts, unless otherwise
provided herein, shall be paid in accordance with the terms of this Agreement to such person or
persons appointed in writing by the Executive to receive such amounts or, if no person is so
appointed, to the Executive’s estate.

 

20

 

14. Indemnification.

(a) If, after the Effective Date, the Executive is made or is threatened to be made a party
to, or is otherwise involved in, any action, suit or proceeding by reason of the fact that he is or
was a director, officer or employee of the Corporation or any of its affiliates, or is or was
serving at the request of the Corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, the Corporation shall, to the
fullest extent permitted by applicable law as it presently exists or may hereafter be amended, (i)
indemnify and
hold harmless the Executive against all liability and loss suffered and expenses (including
attorneys’ fees) reasonably incurred by the Executive in connection therewith, and (ii) pay the
expenses (including attorneys’ fees) incurred by the Executive in defending any such action, suit
or proceeding in advance of its final disposition; provided, however, that the
payment of expenses incurred by the Executive in advance of the final disposition of the action,
suit or proceeding shall be made only upon receipt of an undertaking by the Executive to repay all
amounts advanced if it should ultimately be determined that the Executive is not entitled to be
indemnified under this Section or otherwise.

(b) After the Effective Date, the Corporation shall maintain a directors’ and officers’
liability insurance policy covering the Executive on terms with respect to coverage and amounts no
less favorable than those of such policy in effect on the Effective Date.

15. Miscellaneous.

(a) This Agreement shall be governed by and construed in accordance with the laws of the State
of Delaware without reference to principles of conflict of laws. The captions of this Agreement
are not part of the provisions hereof and shall have no force or effect. This Agreement may not be
amended or modified otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

(b) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

If to the Executive:

	 	 	 	 	 
	If to the Corporation:	 	FedEx Corporation
	 	 	942 South Shady Grove Road
	 	 	Memphis, Tennessee 38120
	 

	 	Attn:
	 	Christine P. Richards
	 

	 	 	 	Executive Vice President,
	 

	 	 	 	General Counsel and Secretary

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notice and communications shall be effective when actually received by the addressee.

(c) The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

 

21

 

(d) If any contest or dispute shall arise under this Agreement involving termination of the
Executive’s employment with the Corporation or involving the failure or refusal of the Corporation
to perform fully in accordance with the terms hereof, the Corporation shall
reimburse the Executive, on a current basis, for all legal fees and expenses, if any, incurred by
the Executive in connection with such contest or dispute regardless of the result thereof.

(e) This Agreement contains the entire understanding between the Corporation and the Executive
with respect to the subject matter hereof and supersedes and nullifies any previous change of
control employment agreement between the parties, including, without limitation, the Management
Retention Agreement, dated as of
 _____, 200_, between the Corporation and the ExecutiveOld
MRA.

(f) The Executive and the Corporation acknowledge that the employment of the Executive by the
Corporation is “at will” and, prior to the Effective Date, may be terminated by either the
Executive or the Corporation at any time. Except as specified in Section 1(a) hereof, upon a
termination of the Executive’s employment or upon the Executive’s ceasing to be an officer of the
Corporation, in each case, prior to the Effective Date, there shall be no further rights under this
Agreement.

(g) The Corporation’s or the Executive’s failure to insist upon strict compliance with any
provision of this Agreement or the failure to assert any right the Corporation or the Executive may
have hereunder, including, without limitation, the right of the Executive to terminate employment
for Good Reason pursuant to Section 6(c) of this Agreement, shall not be deemed to be a waiver of
such provision or right or any other provision or right of this Agreement, except as otherwise
expressly provided herein.

(h) Any reference in this Agreement to any compensation, bonus, profit sharing, stock option,
restricted stock, pension, savings, retirement, welfare, vacation or other similar benefit plan or
program means and includes, for purposes of this Agreement, any substitute or successor plan or
program.

[Signature Page Follows]

 

22

 

IN WITNESS WHEREOF, the Executive has hereunto set his hand and, pursuant to the authorization
from its Board of Directors, the Corporation has caused these presents to be executed in its name
on its behalf, all as of the day and year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	FedEx Corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Christine P. Richards	 	 
	 

	 	 	 	Title:
	 	Executive Vice President,	 	 
	 

	 	 	 	 	 	General Counsel and Secretary	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 

 

23exv4w8

Exhibit 4.8

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, SUCH SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
COVERING SUCH SECURITIES UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE
COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

	 	 	 
	Warrant No. W — 4

	 	Number of Shares — 7,500
	Date of Issuance: July 22, 2009

	 	(subject to adjustment)

WARRANT TO PURCHASE

COMMON STOCK OF

CUMBERLAND PHARMACEUTICALS, INC.

(Void after July 22, 2019)

     THIS WARRANT TO PURCHASE COMMON STOCK OF CUMBERLAND PHARMACEUTICALS, INC. (the
“Warrant”) is issued as of July 22, 2009, by CUMBERLAND PHARMACEUTICALS, INC., a Tennessee
corporation, having a place of business at 2525 West End Avenue, Suite 950, Nashville, Tennessee
37203 (the “Company”), to BANK OF AMERICA, N.A., a national banking association, having a
place of business at 414 Union Street, Nashville, Tennessee 37219 (the “Bank”; the Bank and
any subsequent assignee or transferee hereof are hereinafter referred to collectively as the
“Holder”).

AGREEMENT:

     For and in consideration of the Bank making available to the Company (i) a revolving credit
facility in the maximum principal amount of Four Million and No/100ths Dollars ($4,000,000.00) (the
“Line of Credit”) and (ii) a term loan facility in the original principal amount of
Eighteen Million and No/100ths Dollars ($18,000,000) (the “Term Loan” and together with the
“Line of Credit”, the “Loans”) pursuant to the terms of (i) a Seventh Amended and
Restated Promissory Note of even date herewith in the principal amount of the Line of Credit, made
and executed by the Company, payable to the order of the Bank (together with any and all
extensions, modifications, replacements and renewals thereof, the “Line of Credit Note”),
(ii) a Second Amended and Restated Term Promissory Note of even date herewith in the principal
amount of the Term Loan, made and executed by the Company, payable to the order of the Bank
(together with any and all extensions, modifications, replacements and renewals thereof, the
“Term Note”; and together with the Line of Credit Note, the “Notes”) and (iii) a
Fourth Amended and Restated Loan Agreement of even date herewith, by and between the Bank and the
Company (as amended, modified, supplemented, restated or replaced from time to time, the
“Loan Agreement”; any capitalized terms used but not otherwise defined herein shall
have the same meanings as in the Loan Agreement), and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company hereby grants to the Holder
the right to purchase from the Company at a per share price equal to $17.00 (the “Exercise
Price”), 7,500 shares of the Company’s common stock, $0 par value per share (the “Common
Stock”), at

 

 

any time or from time to time, from July 22, 2009 up to and including 5:00 p.m. (Central time) on
July 22, 2019 (the “Expiration Date”), upon surrender to the Company at its principal
office (or at such other location as the Company may advise the Holder in writing) of this
Warrant properly endorsed with the Notice of Exercise attached hereto as Exhibit A, duly
completed and signed and, if applicable, upon payment in cash or by check acceptable to the
Company of the aggregate Exercise Price for the number of shares for which this Warrant is being
exercised determined in accordance with the provisions hereof. The Exercise Price and the number
of shares purchasable hereunder are subject to adjustment as provided in Section 3 of
this Warrant.

     This Warrant is subject to the following terms and conditions:

     1. Exercise; Issuance of Certificates; Payment for Shares.

          1.1 General. This Warrant is exercisable at the option of the Holder, at any time or from time
to time, from the date of the issuance of this Warrant up to the Expiration Date, for all or any
part of the shares of Common Stock (but not for a fraction of a share) that may be purchased
hereunder. The Company agrees that the shares of Common Stock purchased under this Warrant shall be
and are deemed to be issued to the Holder as the record owner of such shares as of the close of
business on the date on which this Warrant shall have been surrendered to the Company, properly
endorsed, the completed, executed Form of Subscription shall have been delivered and any required
payment made for such shares. Certificates for the shares of Common Stock so purchased, together
with any other securities or property to which the Holder is entitled upon such exercise, shall be
delivered to the Holder by the Company at the Company’s expense within a reasonable time after the
rights represented by this Warrant have been so exercised. In case of a purchase of less than all
of the shares that may be purchased under this Warrant, the Company shall cancel this Warrant and
execute and deliver a new Warrant or Warrants of like tenor for the balance of the shares
purchasable under the Warrant surrendered upon such purchase to the Holder within a reasonable
time. Each stock certificate so delivered shall be in such denominations of Common Stock as may be
requested by the Holder and shall be registered in the name of such Holder.

          1.2 Net Issue Exercise. Notwithstanding any provisions herein to the contrary, if the Fair
Market Value of one share of the Company’s Common Stock is greater than the Exercise Price (at the
date of calculation as set forth below), in lieu of exercising this Warrant for cash, the Holder
may elect to receive shares equal to the value (as determined below) of this Warrant (or the
portion thereof being canceled) by surrender of this Warrant at the principal office of the Company
together with the properly endorsed Form of Subscription and notice of such election in which event
the Company shall issue to the Holder a number of shares of Common Stock computed using the
following formula:

	 	 	 	 	 
	 

	 	X =
	Y (A-B)	 
	 

	 	 	 	 
	 

	 	 	A	 

          Where X = the number of shares of Common Stock to be issued to the Holder

-2-

 

     Y = the number of shares of Common Stock purchasable under the Warrant or, if
only a portion of the Warrant is being exercised, the portion of the Warrant being
canceled (at the date of such calculation)

     A = the Fair Market Value of one share of the Company’s Common Stock (at the
date of such calculation)

     B = Exercise Price (as adjusted to the date of such calculation)

     The “Fair Market Value” of a share of Common Stock as of a particular date shall mean: (a) if
there is an active public market for the Company’s Common Stock at the time of such exercise, the
fair market value per share shall be the average of the closing prices of the Common Stock of the
Company over the five (5) trading days ending immediately prior to the applicable date of valuation
if traded on a securities exchange or the Nasdaq National Market; or, if actively traded
over-the-counter, the average of the closing bid prices over the 30-day period ending immediately
prior to the applicable date of valuation, whichever is applicable; or (b) if there is no active
public market for the Company’s Common Stock at the time of such exercise, the Fair Market Value
shall be the value thereof as determined in good faith by the board of directors of the
Company (the “Determination”), The board of directors shall provide to the Holder a written
notice of the Determination which notice shall set forth supporting data in respect of such
calculation (the “Determination Notice”). Holder shall have 10 days following receipt of
the Determination Notice within which to deliver to the Company a written notice of an objection,
if any, to the Determination. The failure by Holder to deliver such notice within such 10-day
period shall constitute the Holder’s acceptance of the Determination as conclusive. In the event of
the timely delivery by Holder of its objection notice, the Company and the.Holder shall
attempt in good faith to arrive at an agreement with respect to the Fair Market Value of a share of
Common Stock of the Company, which agreement shall be set forth in writing within 15 days following
delivery of such objection notice by Holder. If the Company and the Holder are unable to reach an
agreement within such 15-day period, the matter shall be promptly referred for determination to a
regionally or nationally recognized investment banking or valuation firm (the “Valuer”)
reasonably acceptable to the Company and the Holder. The Company and the Holder will cooperate with
each other in good faith to select such Valuer. The Valuer may select the Determination or may
select any other number or value. The Valuer’s selection will be furnished to the Company and the
Holder in writing and be conclusive and binding upon the parties and shall not be subject to
collateral attack. The fees and expenses of the Valuer shall be borne by the Company unless the
Valuer’s determination of Fair Market Value per share of the Company’s Common Stock is within 10%
of the Determination, in which case the Valuer’s fees and expenses shall be borne by the
Holder,

Notwithstanding the foregoing, in the event the Warrant is exercised in connection with the
Company’s initial public offering of Common Stock, the fair market value per share shall be the
per share offering price to the public of the Company’s initial public offering.

     2. Shares to be Fully Paid; Reservation of Shares. The Company covenants and agrees that
all shares of Common Stock that may be issued upon the exercise of the rights represented by
this Warrant will, upon issuance, be duly authorized, validly issued, fully paid and
nonassessable and free from all preemptive rights of any stockholder and free of all taxes,

-3-

 

liens and charges with respect to the issuance thereof. The Company further covenants and agrees
that during the period within which the rights represented by this Warrant may be exercised, the
Company will at all times have authorized and reserved, for the purpose of issue or transfer upon
exercise of the subscription rights evidenced by this Warrant, a sufficient number of shares of
authorized but unissued Common Stock, or other securities and property, when and as required to
provide for the exercise of the rights represented by this Warrant. The Company will take all
such action as may be necessary to assure that such shares of Common Stock may be issued as
provided herein without violation of any applicable law or regulation, or of any requirements of
any domestic securities exchange upon which the Common Stock may be listed; provided, however,
that the Company shall not be required to effect a registration under federal or state securities
laws with respect to such exercise. The Company will not take any action which would result in any
adjustment of the Exercise Price (as set forth in Section 3 hereof) if the total number of
shares of Common Stock issuable after such action upon exercise of all outstanding warrants,
together with all shares of Common Stock then outstanding and all shares of Common Stock then
issuable upon exercise of all options and upon the conversion of all convertible securities then
outstanding, would exceed the total number of shares of Common Stock then authorized by the
Company’s charter, as amended.

     3. Adjustment of Exercise Price and Number of Shares. The Exercise Price and the number of
shares purchasable upon the exercise of this Warrant shall be subject to adjustment from time to
time upon the occurrence of certain events described in this Section 3. Upon each
adjustment to the Exercise Price, the Holder shall thereafter be entitled to purchase, at the
Exercise Price resulting from such adjustment, the number of shares obtained by multiplying the
Exercise Price in effect immediately prior to such adjustment by the number of shares purchasable
pursuant hereto immediately prior to such adjustment, and dividing the product thereof by the
Exercise Price resulting from such adjustment.

          3.1 Subdivision or Combination of Stock. In case the Company shall at any time subdivide its
outstanding shares of Common Stock into a greater number of shares, the Exercise Price in effect
immediately prior to such subdivision shall be proportionately reduced, and conversely, in case
the outstanding shares of Common Stock of the Company shall be combined into a smaller number of
shares, the Exercise Price in effect immediately prior to such combination shall be
proportionately increased.

          3.2 Dividends in Common Stock, Other Stock, Property, Reclassification. If at any time or
from time to time the holders of Common Stock shall have received or become entitled to receive,
without further payment therefor,

               (a) Common Stock or any shares of stock or other securities that are at any time
directly or
indirectly convertible into or exchangeable for Common Stock, or any rights or options to
subscribe for, purchase or otherwise acquire any of the foregoing by way of dividend or other
distribution,

               (b) any cash paid or payable otherwise than as a cash dividend, or

               (c) Common Stock or additional stock or other securities or property

-4-

 

(including cash) by way of spinoff, split-up, reclassification, combination of shares or similar
corporate rearrangement (other than shares of Common Stock issued as a stock split or adjustments
in respect of which shall be covered by the terms of Section 3.1 above), then and in each
such case, the Holder shall, upon the exercise of this Warrant, be entitled to receive, in addition
to the number of shares of Common Stock receivable thereupon, and without payment of any additional
consideration therefor, the amount of stock and other securities and property (including cash in
the cases referred to in clause (b) above and this clause (c)) that Holder would
hold on the date of such exercise had Holder been the holder of record of such Common Stock as of
the date on which holders of Common Stock received or became entitled to receive such shares or all
other additional stock and other securities and property.

          3.3 Reorganization, Reclassification, Consolidation, Merger or Sale. If any recapitalization,
reclassification or reorganization of the capital stock of the Company, or any consolidation or
merger of the Company with another company, or the sale of all or substantially all of its assets
or other transaction shall be effected in such a way that holders of Common Stock shall be entitled
to receive stock, securities or other assets or property (an “Organic Change”), then, as a
condition of such Organic Change, lawful and adequate provisions shall be made by the Company
whereby the Holder thereafter shall have the right to purchase and receive (in lieu of the shares
of the Common Stock of the Company immediately theretofore purchasable and receivable upon the
exercise of the rights represented hereby) such shares of stock, securities or other assets as may
be issued or payable with respect to or in exchange for a number of outstanding shares of such
Common Stock equal to the number of shares of such stock immediately theretofore purchasable and
receivable upon the exercise of the rights represented hereby. In the event of any Organic Change,
appropriate provision shall be made by the Company with respect to the rights and interests of the
Holder to the end that the provisions hereof (including, without limitation, provisions for
adjustments of the Exercise Price and of the number of shares purchasable and receivable upon the
exercise of this Warrant) shall thereafter be applicable, in relation to any shares of stock,
securities or assets thereafter deliverable upon the exercise hereof. The Company will not effect
any such Organic Change unless, prior to the consummation thereof, the successor company (if other
than the Company) resulting from such consolidation or the company purchasing such assets shall
assume by written instrument reasonably satisfactory in form and substance to the Holder, executed
and mailed or delivered to the registered Holder at the last address of such Holder appearing on
the books of the Company, the obligation to deliver to such Holder such shares of stock, securities
or assets as, in accordance with the foregoing provisions, such Holder may be entitled to purchase.

          3.4 Certain Events. If any change in the outstanding Common Stock of the Company or any
other event occurs as to which the other provisions of this Section 3 are not strictly
applicable or if strictly applicable would not fairly protect the purchase rights of the Holder
of the Warrant in accordance with such provisions, then the Board of Directors of the Company
shall make an adjustment in the number and class of shares available under the Warrant, the
Exercise Price or the application of such provisions so as to protect such purchase rights as
aforesaid. The adjustment shall be such as will give the Holder, upon exercise for the same
aggregate Exercise Price, the total number, class and kind of shares as the Holder would have
owned had the Warrant been exercised prior to the event and had the Holder continued to hold
such Common Stock until after the event requiring adjustment.

-5-

 

     4. Issue Tax. The issuance of certificates for shares of Common Stock upon the exercise of
the Warrant shall be made without charge to the Holder for any issue tax (other than
any applicable income taxes) in respect thereof; provided, however, that the Company shall not be
required to pay any tax that may be payable in respect of any transfer involved in the issuance
and delivery of any certificate in a name other than that of the then Holder of the Warrant being
exercised.

     5. Closing of Books. The Company will at no time close its transfer books against the
transfer of any warrant or of any shares of Common Stock issued or issuable upon the exercise of
any warrant in any manner which interferes with the timely exercise of this Warrant.

     6. No Voting or Dividend Rights; Limitation of Liability. Nothing contained in this Warrant
shall be construed as conferring upon the Holder the right to vote or to consent or to receive
notice as a stockholder of the Company or any other matters or any rights whatsoever as a
stockholder of the Company. Except as set forth in Section 3.2 hereof, no dividends or
interest shall be payable or accrued in respect of this Warrant or the interest represented hereby
or the shares purchasable hereunder until, and only to the extent that, this Warrant shall have
been exercised, No provisions hereof, in the absence of affirmative action by the Holder to
purchase shares of Common Stock, and no mere enumeration herein of the rights or privileges of the
Holder, shall give rise to any liability of such Holder for the Exercise Price or as a stockholder
of the Company, whether such liability is asserted by the Company or by its creditors.

     7. Rights and Obligations Survive Exercise of Warrant. The rights and obligations of the
Company, of the Holder and of the holder of shares of Common Stock (or other shares of stock,
securities or assets) issued upon exercise of this Warrant shall survive the exercise of this
Warrant.

     8. Amendments.

               (a) Any term of this Warrant may be amended with the written consent of the Company
and the Holder. Any amendment effected in accordance with this Section 8 shall be
binding upon the existing and each future holder and the Company.

               (b) No waivers of, or exceptions to, any term, condition or provision of this Warrant,
in any
one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of
any such term, condition or provision.

     9. Notices.

               (a) Whenever the Exercise Price or number of shares purchasable hereunder shall be
adjusted
pursuant to Section 3 hereof, the Company shall issue a certificate signed by its Chief
Financial Officer setting forth, in reasonable detail, the event requiring the adjustment, the
amount of the adjustment, the method by which such adjustment was calculated and the Exercise
Price and number of shares purchasable hereunder after giving effect to such adjustment, and
shall cause a copy of such certificate to be mailed (by first-class mail, postage prepaid) to
the Holder.

-6-

 

               (b) In case:

     (i) the Company shall take a record of the holders of its Common Stock
(or other stock or securities at the time receivable upon the exercise of
this Warrant) for the purpose of entitling them to receive any dividend or
other distribution, or any right to subscribe for or purchase any shares of
stock of any class or any other securities, or to receive any other right,
or

     (ii) of any capital reorganization of the Company, any reclassification
of the capital stock of the Company, any consolidation or merger of the
Company with or into another company, or any conveyance of all or
substantially all of the assets of the Company to another company, or

     (iii) of any voluntary dissolution, liquidation or winding-up of the
Company,

then, and in each such case, the Company will mail or cause to be mailed to the Holder or Holders
a notice specifying, as the ease may be, (A) the date on which a record is to be taken for the
purpose of such dividend, distribution or right, and stating the amount and character of such
dividend, distribution or right, or (B) the date on which such reorganization, reclassification,
consolidation, merger, conveyance, dissolution, liquidation or winding-up is to take place, and
the time, if any is to he fixed, as of which the holders of record of Common Stock (or such stock
or securities at the time receivable upon the exercise of this Warrant) shall be entitled to
exchange their shares of Common Stock (or such other stock or securities) for securities or other
property deliverable upon such reorganization, reclassification, consolidation, merger,
conveyance, dissolution, liquidation or winding-up. Such notice shall be mailed at least 15 days
prior to the date therein specified.

               (c) Any notice, request or other document required or permitted to be given or delivered
to
the Holder or the Company shall be delivered or shall be sent by certified mail, postage prepaid,
to the Holder at its address as shown on the books of the Company or to the Company at the address
indicated therefor in the first paragraph of this Warrant or such other address as either may from
time to time provide to the other. Any notice, request or other document required or permitted to
be given or delivered pursuant to this Warrant shall be deemed effectively given: (i) upon
personal delivery to the party to be notified; (iii) five days after having been sent by
registered or certified mail, return receipt requested, postage prepaid; or (iv) one day after
deposit with a nationally recognized overnight courier, specifying next day delivery, with written
verification of receipt.

     11. Binding Effect on Successors. This Warrant shall be binding upon any company succeeding
the Company by merger, consolidation or acquisition of all or substantially all of the Company’s
assets. All of the obligations of the Company relating to the Common Stock issuable upon the
exercise of this Warrant shall survive the exercise and termination of this Warrant. This Warrant
and all rights hereunder may be transferred or assigned, in whole or in part, to any

-7-

 

person or business entity upon surrender of this Warrant at the principal office of the Company,
accompanied by an Assignment Form attached hereto as Exhibit B, duly completed and
signed. Upon surrender of this Warrant and receipt of the Assignment Form, the Company, at its
expense, shall issue to or on the order of the new Holder a new warrant or warrants of like tenor
in accordance with the Assignment Form.

     12. Descriptive Headings. The description headings of the several sections and paragraphs of
this Warrant are inserted for convenience only and do not constitute a part of this Warrant,

     13. Governing Law. This Warrant shall be construed and enforced in accordance with, and
the rights of the parties shall be governed by, the laws of the State of Tennessee.

     14. Replacement Warrants. The Company represents and warrants to the Holder that upon receipt
of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and, in the case of any such loss, theft or destruction, upon receipt of an indemnity
reasonably satisfactory to the Company, or in the case of any such mutilation, upon surrender and
cancellation of such Warrant, the Company, at its expense, will execute and deliver a new Warrant,
of like tenor, in lieu of the lost, stolen, destroyed or mutilated Warrant.

     15. Fractional Shares, No fractional shares shall be issued upon exercise of this Warrant.
The Company shall, in lieu of issuing any fractional share, pay the Holder entitled to such
fraction a sum in cash equal to such fraction multiplied by the Fair Market Value of a share of
Common Stock.

     16. Equity Participation. This Warrant and the rights of the Holder hereunder are intended to
constitute an “equity participation” for purposes of Title 47, Chapter 24, Tennessee Code
Annotated, and the consideration or value received by the Holder in respect of this Warrant shall
not be deemed to be interest, loan charges, commitment fees or brokerage commissions for purposes
of Title 47, Chapter 14, Tennessee Code Annotated.

     17. No Novation. This Warrant does not constitute a discharge or novation of any warrant
existing prior to this Warrant, including, without limitation, that certain Warrant to Purchase
Common Stock of Cumberland Pharmaceuticals, Inc. (W-1) dated as of October 21, 2003, and that
certain Warrant to Purchase Common Stock of Cumberland Pharmaceuticals, Inc. (W-3) dated as of
April 6, 2006, and such documents shall continue in full force and effect, shall be fully binding
upon the Company, and all rights hereunder shall be cumulative in effect with such documents.

(The balance of this page is intentionally left blank.]

-8-

 

     IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its officers,
thereunto duly authorized, as of the date first above written.

	 	 	 	 	 
	 	CUMBERLAND PHARMACEUTICALS, INC.

 	 
	 	By:  	/s/ David L. Lowrance
 	 
	 	 	Name: 	David L. Lowrance 	 
	 	 	Title: 	CFO 	 
	 

Warrant (W-4) Signature Page

 

 

EXHIBIT A

NOTICE OF EXERCISE

To: Cumberland Pharmaceuticals, Inc.

     o The undersigned hereby elects to exercise the attached Warrant and to purchase
thereunder
                     shares of Common Stock at a purchase price of
                    
Dollars ($___) per Share or an aggregate purchase price of                      Dollars ($___). Pursuant to the
terms of the Warrant, the undersigned has delivered the purchase price herewith in full.

     o The undersigned hereby elects to convert
                     percent (%___) of the value of
the Warrant pursuant to the provisions of Section 1.2 of the Warrant.

     Please issue a certificate or certificates representing said shares of Common Stock in the
name of the undersigned or in such other name as is specified below:

	 	 	 	 	 
	 

	 	 

(Name)
	 	 
	 
	 	 	 	 
	 

	 	 

(Name)
	 	 

     Please issue a new Warrant for the unexercised portion of the attached Warrant, if
applicable, in the name of the undersigned or in such other name as is specified below:

	 	 	 	 	 
	 

	 	 

(Name)
	 	 
	 
	 	 	 	 
	 

	 	 

(Name)
	 	 
	 
	 	 	 	 
	 

	 	 

(Signature)
	 	 
	 

(Date)

	 		 	 

 

 

EXHIBIT B

ASSIGNMENT FORM

     FOR VALUE RECEIVED, the undersigned registered owner of the attached Warrant hereby sells,
assigns and transfers all of the rights of the undersigned under the attached Warrant with respect
to the number of shares of the security covered thereby set forth below, unto:

	 	 	 	 	 
	Name of Assignee	 	Address	 	No. of Shares
	 	 	 	 	 

	 	 	 	 	 
	 

(Date)

	 	 

(Signature)

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