Document:

Exhibit 10.28

EXECUTION
COPY

 

TWENTY- SEVENTH
SUPPLEMENTAL LEASE AGREEMENT

by and between

MEMPHIS-SHELBY
COUNTY AIRPORT AUTHORITY

and

FEDERAL EXPRESS
CORPORATION

Dated as of May 1,
2006

 

AMENDING THE
CONSOLIDATED AND RESTATED LEASE AGREEMENT DATED AS OF AUGUST 1, 1979 BETWEEN
THE MEMPHIS-SHELBY COUNTY AIRPORT AUTHORITY AND FEDERAL EXPRESS CORPORATION.

 

 

TABLE OF CONTENTS

	
  Section

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  2

  	
  Granting Leasehold

  	
   

  
	
   

  	
   

  	
   

  
	
  3

  	
  Term; Delivery and
  Acceptance of Possession

  	
   

  
	
   

  	
   

  	
   

  
	
  4

  	
  Rental

  	
   

  
	
   

  	
   

  	
   

  
	
  5

  	
  Hazardous
  Substances/Waste

  	
   

  
	
   

  	
   

  	
   

  
	
  6

  	
  Lease Agreement Still
  in Effect; Provisions There of Applicable to this Twenty-Seventh

  Supplemental Lease Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  7

  	
  Descriptive Headings

  	
   

  
	
   

  	
   

  	
   

  
	
  8

  	
  Effectiveness of this
  Twenty-Seventh Lease Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  9

  	
  Execution of
  Counterparts

  	
   

  
	
   

  	
   

  	
   

  
	
  10

  	
  Summaries

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notary

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Leased Parcel Summary

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Rental Summary

  	
   

  

 

 

 

 

TWENTY-SEVENTH
SUPPLEMENTAL LEASE AGREEMENT

THIS
TWENTY-SEVENTH SUPPLEMENTAL LEASE AGREEMENT, made and entered
into as of the 1st of May 2006, by and between MEMPHIS-SHELBY COUNTY
AIRPORT AUTHORITY (herein sometimes referred to as “Authority”), a public and
governmental body politic and corporate of the State of Tennessee, and FEDERAL
EXPRESS CORPORATION (herein sometimes referred to as “Tenant”), a corporation
duly organized and existing under the laws of the State of Delaware and
qualified to do business in the State of Tennessee.

W I T N E S S E T
H:

WHEREAS, Authority
and Tenant on October 3, 1979 entered into a Consolidated and Restated
Lease Agreement dated as of August 1, 1979; and

WHEREAS, Authority
and Tenant between April 1, 1981 and September 1, 2005, have entered
into Twenty Six Supplemental Lease Agreements amending the 1979 Consolidated
and Restated Lease Agreement; and

WHEREAS, the said
Consolidated and Restated Lease Agreement dated as of August 1, 1979,
together with the First through the Twenty-Sixth Supplemental Lease Agreements,
is herein referred to as the “Lease Agreement”; and

WHEREAS, Authority
and Tenant have agreed to further supplement the Lease Agreement so as to add
certain property for the purpose of developing aircraft parking and certain
unimproved land associated therewith containing approximately 106,642 square
feet of land; and

WHEREAS, Authority
and Tenant have also agreed to add additional unimproved land containing
approximately 187,618 square feet for the purpose of GSE storage for A-380
aircraft.

 3
 

 

 

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

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

SECTION 2.  Granting
of Leasehold.  In addition
to the lease and demise to Tenant of the land in the Lease Agreement, the
Authority hereby leases and demises to Tenant, and Tenant hereby takes and
hires from Authority, subject to the provisions and conditions set forth in the
Lease Agreement and this Twenty-Seventh Supplemental Lease Agreement, the
additional land described in Exhibit “A” attached hereto and containing
approximately 187,618 square feet or 4.31 acres, and described in Exhibit “B”
attached hereto containing approximately 106,642 square feet or 2.448 acres.

SECTION 3.  Term;
Delivery and Acceptance of Possession.  The term of this Twenty-Seventh
Supplemental Lease Agreement and all rights herein granted to tenant shall be
made effective as of May 1, 2006 for the land  described in Exhibits “A” and  “B” and shall expire at such time as the
Consolidated and Restated Lease Agreement dated August 1, 1979 shall
expire, to-wit:  August 31, 2012 or
upon such earlier termination, extension or otherwise as provided therein.

SECTION 4.  Rental.
  In addition and supplemental to the
rentals required to be paid to the Authority pursuant to Section 5 of the
Lease Agreement (including all prior Supplemental Lease

 4
 

 

 

Agreements), during the
term of this Twenty-Seventh Supplemental Lease Agreement, Tenant shall pay
equal rental installments to the Authority in advance on the first business day
of each month beginning on the earlier of 
the date of beneficial occupancy or the following dates, to wit:

	
  Beginning December 1, 2007

  	
   

  	
  Monthly Rental

  	
   

  	
  Annual Rental

  	
   

  
	
  106,642 sq. ft.

  	
   

  	
  $

  	
  1,355.24

  	
   

  	
  $

  	
  16,262.91

  	
   

  
								

 

	
  Beginning March 1, 2008

  	
   

  	
  Monthly Rental

  	
   

  	
  Annual Rental

  	
   

  
	
  187,618 sq. ft.

  	
   

  	
  $

  	
  2,384.31

  	
   

  	
  $

  	
  28,611.75

  	
   

  
								

 

The rental rate shall adjust upward by
twenty-five percent (25%) every five (5) years in accordance with the Base
Lease Agreement.

SECTION 5.  Hazardous
Substances/Waste.  Tenant
agrees to take the above parcels included in this Supplement in an “as is”
condition as it relates to Hazardous Substances/Waste material that may be
located at the site.

Tenant, at its own
expense, may arrange for a Phase I Environmental Survey on the land described
herein by a reputable environmental consultant to determine the existence of “Hazardous
Substances”, as such term is defined in this Agreement. In the event that “Hazardous
Substances” are discovered during excavation for construction on the property
described in Exhibits “A” & B, and those “Hazardous Substances”
require special handling, removal or disposal (“Remediation”), then Tenant
shall immediately notify Authority. The Tenant and Authority will confer and
jointly determine the method of handling, removing or disposing of the “Hazardous
Substances” within 14 days after Tenant provides the Authority, in writing, its
plan for Remediation. The form of Remediation agreed to by the parties must
comply with “Environmental Laws”, as such term is defined below. In the event
that Tenant and Authority are unable to agree on a method for handling,
removing or disposing of the “Hazardous Substances” due to differing
interpretations of the

 5
 

 

 

requirements for
Remediation as set forth in the applicable “Environmental Laws”, then the form
of Remediation will be determined by the appropriate federal, state or local agency
with relevant regulatory and enforcement jurisdiction over the subject site. Authority
will grant to Tenant a rent credit equal to the reasonable documented costs
paid by Tenant for the Remediation of such “Hazardous Substances” associated
with the property described in Exhibits “A” & “B”.

The term “Hazardous Substances”, as used in this
Twenty-Seventh Supplemental Lease Agreement, shall mean any hazardous or toxic
substances, materials or wastes, including, but not limited to, those
substances, materials, and wastes (i) listed in the United States
Department of Transportation Hazardous Materials Table (49 CFR § 172.101) or by
the Environmental Protection Agency as hazardous substances (40 CFR Part 302
and amendments thereto), (ii) designated as a “Hazardous Substance”
pursuant to Section 311 of the Clean Water Act, 33 U.S.C. § 1251 et seq.
(33 U.S.C. § 1321) or listed pursuant to Section 307 of the Clean Water
Act (33 U.S.C. § 1317), (iii) defined as a “Hazardous Waste” pursuant to Section 1004
of the Resource Conservation and Recovery Act, 42 U.S.C. § 6901, et seq. (42
U.S.C. § 6903), or (iv) defined as “Hazardous Substance” pursuant to Section 101
of the Comprehensive Environmental Response, Compensation and Liability Act,
(42 U.S.C.§ 9601, et seq. 42 U.S.C. § 9601), or any other substances,
(including, without limitation, asbestos and raw materials which include
hazardous constituents), the general, discharge or removal of which or the use
of which is restricted, prohibited or penalized by any “Environmental Law”,
which term shall mean any Federal, State or local law, regulation, or ordinance
relating to pollution or protection of the environment.

SECTION 6.  Lease
Agreement Still in Effect; Provisions Therefore Applicable to this Supplemental
Lease Agreement.  All of
the terms, provisions, conditions, covenants and agreements of the Lease
Agreement, as supplemented, shall continue in full force and effect as

 6
 

 

 

supplemented hereby, and
shall be applicable to each of the provisions of this Twenty-Seventh  Supplemental Lease Agreement during the term
hereof with the same force and effect as though the provisions hereof were set
forth in the Lease Agreement.

SECTION 7.  Descriptive
Headings.  The descriptive
headings of the sections of this Twenty-Seventh Supplemental Lease Agreement
are inserted for convenience of reference only and do not constitute a part of
this Twenty-Seventh Supplemental Lease Agreement and shall not affect  meaning, construction, interpretation or
effect of this Twenty-Seventh Supplemental Lease Agreement.

SECTION 8.  Effectiveness
of this Supplemental Lease Agreement.  This Twenty-Seventh Supplemental Lease
Agreement shall become effective as described in Section 4.

SECTION 9.  Execution
of Counterparts.  This
Twenty-Seventh Supplemental Lease Agreement may be simultaneously executed in
several counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

SECTION 10.  Summaries.  For the convenience of both parties a
Leased Parcel Summary and a Rental Summary are attached to this Lease
Agreement.

 7
 

 

 

IN WITNESS WHEREOF, THE
MEMPHIS-SHELBY COUNTY AIRPORT AUTHORITY AND FEDERAL EXPRESS CORPORATION have
caused this Twenty-Seventh Supplemental Lease Agreement to be duly executed in
their respective behalfs, as of the day and year first above written.

	
  WITNESS:

  	
  MEMPHIS-SHELBY COUNTY AIRPORT

  AUTHORITY

  
	
   

  	
   

  	
   

  
	
  /s/ RICHARD V.
  WHITE

  	
   

  	
  BY:

  	
  /s/ LARRY COX

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TITLE: Director
  of Properties

  	
  TITLE: President

  
	
   

  	
   

  
	
  Approved as to Form and
  Legality:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ R. GRATTAN
  BROWN, JR.

  	
   

  	
   

  	
   

  
	
  R. Grattan
  Brown, Jr., Attorney

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WITNESS:

  	
  FEDERAL EXPRESS CORPORATION

  A Delaware Corporation

  
	
   

  	
   

  
	
  /s/ BONITA
  SAFFOLD

  	
   

  	
  BY:

  	
  /s/ WILEY JOHNSON, JR.

  	
   

  
	
   

  	
   

  
	
  TITLE: Project
  Coordinator

  	
  TITLE: Managing Director, Real Estate and Airport
  Development

  
							

 

 8
 

 

 

(STATE OF TENNESSEE)

(COUNTY OF SHELBY)

On
this 10th day of July, 2006 before me appeared Larry Cox, to me personally
known, who, being by me duly sworn (or affirmed), did say that he is the
President of the Memphis-Shelby County Airport Authority, the within named
Lessor, and that he as such President, being authorized so to do, executed the
foregoing instrument for the purposes therein contained, by signing the name of
the Authority by himself as such President.

MY COMMISSION EXPIRES

	
  September 19, 2007

  	
  /s/ SHAWNITA L. NEELY

  	
   

  
	
   

  	
  Notary Public

  	
   

  

 

(seal)

 

(STATE OF TENNESSEE)

(COUNTY OF SHELBY)

On
this 27th day of June, 2006 before me appeared Wiley Johnson, Jr., to me
personally known, who, being by me duly sworn (or affirmed), did say that he is
a Managing Director of Federal Express Corporation, the within named Lessee,
and that he as such Managing Director, being authorized so to do, executed the
foregoing instrument for the purposes therein contained, by signing the name of
the Corporation by himself as such Managing Director.

MY COMMISSION EXPIRES

	
  September 19, 2007

  	
  /s/ BEVERLY AZLIN

  	
   

  
	
   

  	
  Notary Public

  	
   

  

 

(seal)

 9
 

 

 

[Land surveys]

 10Exhibit 10.55

SIXTH
ADDENDUM

THIS SIXTH
ADDENDUM (“Sixth Addendum”), dated the 9th day of June, 2006, revises and
supplements the Transportation Agreement between the United States Postal
Service (“USPS” or “the Postal Service”) and Federal Express Corporation
(“FedEx”).

BACKGROUND FACTS

On
January 10, 2001, USPS and FedEx entered into the Transportation Agreement
(“Agreement”) which states that FedEx will provide for the transportation of
certain USPS Products.

On
December 13, 2001, USPS and FedEx entered into the Addendum to the
Agreement (“Addendum”) due to the USPS’ immediate need for the transportation
of its Product over and above the Minimum Guaranteed Volumes listed in the
Agreement.

On April 3,
2002 and April 26, 2002, USPS and FedEx entered into the First Amendment
to the Addendum and the Second Amendment to the Addendum, respectively.

On August 29,
2002 and December 4, 2002, USPS and FedEx entered into the Second Addendum
to the Agreement (“Second Addendum”) and the First Amendment to the Second Addendum,
respectively which addressed the obligations of both parties through
June 1, 2003.

On
January 30, 2003, USPS and FedEx entered into the Third Addendum to the
Agreement (“Third Addendum”) which addressed the obligations of both parties
through May 30, 2004.

On June 4,
2003, USPS and FedEx entered into the First Amendment to the Third Addendum.

On
November 21, 2003 and December 8, 2003, USPS and FedEx entered into
the Second Amendment to the Third Addendum and the Third Amendment to the Third
Addendum, respectively.

On March 16,
2004, USPS and FedEx entered into the Fourth Addendum.

On
November 22, 2004, USPS and FedEx entered into the Fifth Addendum.

The parties now desire to extend the Interim Period subject to the
following terms:

 

 

AGREEMENT

1.                                       Definitions

For the purposes of this
Sixth Addendum, capitalized terms used as defined terms and not otherwise
defined in this Sixth Addendum shall have the meanings outlined in the
Agreement. The following additional terms shall have the following meaning:

“Billable Weekday
Volume” means the greater of the actual Mid-week Volume tendered by USPS to
FedEx during the Schedule Period or [ 
*  ] of the aggregate Daily
Mid-Week Volume Commitment for the Schedule Period.

“Billable Weekend
Volume” means the greater of the actual Weekend Volume tendered by USPS to
FedEx during the Schedule Period or [ 
*  ] of the aggregate Daily
Weekend Volume Commitment for the Schedule Period.

“Daily Mid-week
Volume Commitment” means the daily volume committed for transport during the
Day Turn Operations on Tuesday through Friday of a week for a Schedule Period.

“Daily Weekend
Volume Commitment” means the volume committed for transport during the Day Turn
Operations on Saturday and Sunday of a week for a Schedule Period.

“Interim Period”
means the period of time commencing on May 29, 2006 and terminating July 31, 2006.

“Night-Turn
Mid-week Volume Commitment” means the daily volume committed for transport
during the Night-Turn Operations on Monday through Friday of a week for a
Schedule Period.

“Non-Widely
Observed Holiday” means Columbus Day, Veteran’s Day, President’s Day and Martin
Luther King Day.

“Offshore
Locations” means [  *  ].

“Operating Day”
means any day other than a Monday or a FedEx Holiday for the Day-Turn
Operations.

“Revised Schedule
Period Request Forecast” means the volume forecasting document which USPS will
provide to FedEx after the Schedule Period Request Forecast. USPS will provide
the Revised Schedule Period Request Forecast no later than [  *  ]
calendar days prior to each Schedule Block Implementation Date.

*                 Blank spaces contained confidential
information which has been filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 under the Securities Exchange Act
of 1934, as amended.

 2
 

 

 

“Trucking
Location” means a location specified on Exhibit A, attached.

“Weekend Volume”
means volume transported during the Day Turn Operations on Saturday and Sunday
of a week.

2.                                       Volume

(a)           During the Interim Period, the
Committed Volume and the Committed Volume Schedule will be as set forth in the
following table:

[  *  ]

(b)           During the Interim Period, USPS will
tender and FedEx must transport between [ 
*  ] and [  *  ] of
the Committed Volume for each applicable Schedule Block listed in the chart
above.

*                 Blank spaces contained confidential
information which has been filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 under the Securities Exchange Act
of 1934, as amended.

 3
 

 

 

3.                                       Schedule Period Request Forecast

Section 3.3.0
of Exhibit A of the Agreement is hereby modified for the Interim Period as
follows:  For any Schedule Period in
which the USPS Schedule Period Request Forecast is greater than [  *  ]
the USPS shall deliver to FedEx a Revised Schedule Period Request Forecast no
later than [  *  ] calendar days prior to each Schedule Block
Implementation Date. [  *  ]  If
USPS does not make the Revised Schedule Period Request Forecast available by
the required deadline, the Schedule Period Request Forecast shall be used.

4.                                       Non-Fuel Transport

During the Interim
Period, FedEx will invoice USPS for the non-fuel transport portion of the Day
System pricing at the rates provided below:

[  *  ]

5.                                       No Non-Widely Observed
Holiday

During
the Interim Period, the parties agree that for those months in which there is
no Non-Widely Observed Holiday (i.e. June, 2006 and July, 2006), the monthly
billed volume will be computed on the following basis:

[  *  ]

*                 Blank spaces contained confidential
information which has been filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 under the Securities Exchange Act
of 1934, as amended.

 4
 

 

 

6.                                       Bypass Container Handling
Charge 

During the Interim
Period, FedEx and the USPS agree that notwithstanding the provisions of Exhibit B,
paragraph A(3) of the Agreement, USPS shall be invoiced a handling charge
of [  * 
] for packages unloaded from By-pass ULDs which are destined to a
Trucking Location. FedEx and USPS agree to the following methodology to
simplify invoicing:

FedEx
will invoice USPS on the daily invoice at the contractual rate for all Handling
Units, including packages unloaded from a By-Pass ULD destined for a Trucking
Location. FedEx will then calculate a credit at the end of each Schedule
Period. [  *  ]

7.                                       Density

The provisions of
Exhibit B, paragraph A, subparagraphs 1 and 2 of the Agreement will be
revised for the Interim Period to eliminate the cubic footage conversion factor
of [  * 
]

8.             7-day By-Pass Matrix
Review

Section 3.6.0
of Exhibit A, Operating Specifications, is hereby modified for the Interim
Period as follows:

[  *  ]

*                 Blank spaces contained confidential
information which has been filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 under the Securities Exchange Act
of 1934, as amended.

 5
 

 

 

9.             Saturday
Volume

Attachment
1 of the Agreement is hereby modified for the remaining Term of the Interim
Period, as follows:

USPS agrees that if the
Daily Weekend Volume Commitment it tenders to FedEx consists of equal amounts of
volume for the Saturday and Sunday, FedEx may tender not less than [  *  ] of
the Saturday volume on Saturday and not less than [  *  ] of
the Saturday volume by noon Sunday (local time at the destination market) to
USPS with the remainder not later than the Sunday tender times set forth in
Attachment 1 to the Agreement. However, the parties agree that if USPS desires
a Daily Weekend Volume Commitment which consists of a higher volume on Saturday
than on Sunday, USPS may do so by indicating its intent when it submits the
Revised Schedule Period Request Forecast which is required to be submitted no
later than [  *  ] calendar days prior to each Schedule
Block Implementation Date. In such event, FedEx will only be required to tender
not less than [  *  ] of the aggregate Weekend Volume
Commitment on Saturday and not less than [  *  ] of the
aggregate Weekend Volume Commitment by noon Sunday. The parties shall cooperate
in good faith to identify those USPS locations where the distribution pattern
described in this paragraph will minimize inefficiencies in each organization.

10.          Prior Agreements to be
Extended

(a)                                  Preliminary Network Flow

Notwithstanding
the provisions of Section 3.6.0 of the Operating Specifications, during
the Interim Period, the parties agree that FedEx will not be required to
furnish USPS with the Preliminary Network Flow document.

(b)                                 Service for Offshore Locations

During the Interim Period, the Market Service Commitment Time provided
for in Attachments 1 and 2 to Exhibit A for volume to or from the Offshore
Locations will be adjusted [  *  ]. If USPS requests FedEx to accept for
transport an amount in excess of the maximum volumes for the Offshore Locations
but FedEx is unable to transport the excess volume to such destination by such
adjusted Market Service Commitment Time, FedEx shall tender such excess volume
to the gateway for the destination not later than the adjusted Market Service
Commitment Time. The gateway locations for the following destinations are:  [  *  ]

*                 Blank spaces contained confidential
information which has been filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 under the Securities Exchange Act
of 1934, as amended.

 6
 

 

 

11.             Full Force and Effect

Except
as amended by this Sixth Addendum, the terms and conditions of the Agreement
shall remain in full force and effect and are ratified and confirmed in all
other respects.

12.           Provision Conflict

If
any provision of this Sixth Addendum conflicts with any provision of the
Agreement, the provision of the Agreement shall govern, unless otherwise
provided for in the Addendum.

The parties have signed
this Sixth Addendum in duplicate, one for each of the parties, as of
June 9, 2006.

 

 

	
  

  	
   

  	
  THE UNITED STATES POSTAL SERVICE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ J. DWIGHT YOUNG

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Printed Name: J. Dwight Young

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Printed Title: Manager, Transportation Portfolio

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FEDERAL EXPRESS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ PAUL J. HERRON

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Printed Name: Paul J. Herron

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Printed Title: VP, Postal Transportation

  

 

 7

 

Exhibit A

to the

Sixth Addendum

The Trucking Locations are as follows:

[  *  ]

The list of Trucking
Locations may be amended during the Interim Period by mutual agreement may be
amended during the Interim Period by mutual agreement of the parties.

*                 Blank spaces contained confidential
information which has been filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 under the Securities Exchange Act
of 1934, as amended.

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