Document:

EX-10.26

  
   
    Exhibit 10.26 

    INFORMATION IN THIS EXHIBIT IDENTIFIED BY BRACKETS IS CONFIDENTIAL AND HAS BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10)(IV) OF REGULATION S-K BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) THE TYPE THAT FEDEX TREATS AS PRIVATE OR CONFIDENTIAL. 

    Supplemental Agreement No. 16 

    to 

    Purchase Agreement No. 3157 

    between 

    The Boeing Company 

    And 

    Federal Express Corporation 

    Relating to Boeing Model 777-FREIGHTER Aircraft 

    THIS SUPPLEMENTAL AGREEMENT, entered into as of the 31 st day of January, 2011, by and between THE BOEING COMPANY (Boeing) and FEDERAL EXPRESS CORPORATION (Customer); 

    W I T N E S S E T H : 

    WHEREAS, the parties entered into that certain Purchase Agreement No. 3157, dated November 7, 2006 (Purchase Agreement), relating to the purchase and sale of certain Boeing Model 777-FREIGHTER Aircraft (Aircraft); and 

    WHEREAS, Customer desires to add two (2) Aircraft to the Purchase Agreement with delivery dates as follows; 

    Delivery Dates 

    for 

    Aircraft 

    [ * ] 

    [ * ] 

     

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

     

    S16 - 1 

   

  
   

  

  
   
    Supplemental Agreement 16 to 

    Purchase Agreement No. 3157 

    WHEREAS, Customer desires to exercise two (2) Option Aircraft under Letter Agreement 6-1162-RRO-1062 to the Purchase Agreement with delivery months as follows; 

    Delivery Month 

    for 

    Option Aircraft 

    [ * ] 

    [ * ] 

    NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto agree to supplement the Purchase Agreement as follows: 

    All terms used herein and in the Purchase Agreement, and not defined herein, shall have the same meaning as in the Purchase Agreement. 

     

    	1.	 Remove and replace, in its entirety, the “Table of Contents” with the revised Table of Contents attached hereto to reflect the changes made by this Supplemental Agreement No. 16. 

     

    	2.	 Customer and Boeing hereby acknowledge and confirm that two (2) Aircraft with delivery months of [ * ] and [ * ] are hereby added to the Purchase Agreement, and will be collectively classified as Block D Aircraft (Block D) and are included in Table 1-D. No later than twelve (12) months prior to the first month of the quarter of the applicable deliveries for such Aircraft, Boeing will notify Customer of the delivery month of such Aircraft. 

     

    	3.	 Customer and Boeing hereby acknowledge and confirm that the two (2) Option Aircraft under Letter Agreement 6-1162-RRO-1062 with delivery months of [ * ] and [ * ] are hereby exercised by this Supplemental Agreement No. 16 and will be collectively classified as Block C Aircraft (Block C). Boeing acknowledges and confirms that its right to adjust the scheduled delivery month of such Option Aircraft by [ * ], as set forth in paragraph 4.1 of Letter Agreement 6-1162-RRO-1062, is hereby waived with respect to the two (2) Option Aircraft exercised hereby. 

     

    	4.	 Customer and Boeing hereby acknowledge and confirm that: 

     

    	 	4.1	 Letter agreement 6-1162-RRO-1065 “Aircraft Performance Guarantees for Block B Aircraft” shall apply to [ * ]. 

     

    	 	4.2	 Letter agreement 6-1162-RRO-1065 “Aircraft Performance Guarantees for Block B Aircraft” shall apply to [ * ]. 

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

     

    S16 - 2 

   

  
   

  

  
   
    Supplemental Agreement 16 to 

    Purchase Agreement No. 3157 

     

    	5.	 Add “Table 1-C2” attached hereto to reflect the delivery dates, pricing and advance payments of the two (2) Option Aircraft exercised by this Supplemental Agreement No. 16. 

     

    	6.	 Remove and replace, in its entirety, the “Table 1-D” with the revised Table 1-D attached hereto to reflect the delivery dates, pricing and advance payments of the two (2) incremental Block D Aircraft added by this Supplemental Agreement No. 16. 

     

    	7.	 Remove and replace, in its entirety, the Attachment to Letter Agreement 6-1162-RRO-1062 entitled “Option Aircraft Delivery, Description, Price and Advance Payments” with the revised Attachment to Letter Agreement 6-1162-RRO-1062 entitled “Option Aircraft Delivery, Description, Price and Advance Payments” attached hereto to reflect the deletion of two (2) Option Aircraft from the Attachment, as such Option Aircraft are being exercised as firm Aircraft, as well as to reflect other changes made by this Supplemental Agreement No. 16. 

     

    	8.	 Remove and replace, in its entirety, Letter Agreement FED-PA-LA-1000790R1 entitled “Special Matters for Block C Aircraft” with the revised Letter Agreement FED-PA-LA-1000790R2 entitled “Special Matters for Block C Aircraft” attached hereto to reflect changes made by this Supplemental Agreement No. 16. 

     

    	9.	 Remove and replace, in its entirety, Letter Agreement FED-PA-LA-1001683 entitled “Special Matters for Block D Aircraft” with the revised Letter Agreement FED-PA-LA-1001683R1 entitled “Special Matters for Block D Aircraft” attached hereto to reflect changes made by this Supplemental Agreement No. 16. 

     

    	10.	 Customer and Boeing acknowledge and confirm that Letter Agreement 6-1162-RRO-1144R3 entitled [ * ] is hereby cancelled and replaced in its entirety with Letter Agreement 6-1162-RRO-1144R4 entitled [ * ]. 

     

    	11.	 Boeing will use commercially reasonable efforts to offer to Customer [ * ]. Should Boeing be able to accommodate this change [ * ]. 

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

     

    S16 - 3 

   

  
   

  

  
   
    Supplemental Agreement 16 to 

    Purchase Agreement No. 3157 

     

    	12.	 Customer and Boeing agree that the two (2) Block D Aircraft added to the Purchase Agreement by this Supplemental Agreement No. 16 and the two (2) Option Aircraft exercised by this Supplemental Agreement No. 16 will be subject to and benefit from the same terms and conditions as the Aircraft except as set forth herein and in writing signed by authorized representatives of the parties. 

     

    	13.	 As a result of adding two (2)Block D Aircraft and Customer exercising two (2) Option Aircraft to the Purchase Agreement, advance payments in the amount of [ * ] will be due concurrent with Customer’s written confirmation to Boeing as detailed in paragraph 15 below. 

     

    	14.	 This Supplemental Agreement No. 16 shall not be effective unless executed and delivered by Customer on or prior to January 31, 2011. 

     

    	15.	 This Supplemental Agreement No. 16 shall not be effective unless and until, and the matters expressed herein are expressly conditioned upon, Customer receiving approval from the board of directors of Customer’s parent company, FedEx Corporation. Should such approval not be granted and confirmed in writing by Customer to Boeing by March 21, 2011, this Supplemental Agreement shall automatically terminate and be null and void in all respects, and neither party shall owe any obligation to the other party with respect to the matters expressed herein; provided, however, no such termination shall otherwise impact the parties’ rights and obligations existing under the Purchase Agreement prior to this Supplemental Agreement. For the sake of clarity, neither party shall be deemed to be in default hereunder for failing to have performed any obligation created under this Supplement Agreement, including without limitation any payment obligation, prior to the receipt by Boeing of the aforementioned written confirmation. 

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

     

    S16 - 4 

   

  
   

  

  
   
    EXECUTED as of the day and year first above written. 

     

    									
	THE BOEING COMPANY	  	        	  	FEDERAL EXPRESS CORPORATION
					
	By:	  	 /s/ STUART C. ROSS
  
 Its: Attorney-In-Fact
	  		  	By:	  	 /s/ PHILLIP C. BLUM
  
 Its: VP, Aircraft Acquisitions & SAO

     

    S16 - 5 

   

  
   

  

  
   
      

    TABLE OF CONTENTS 

     

    			
	 	  	SA
	 	  	 NUMBER

	ARTICLES	  	
		
	 1.   Quantity, Model and Description
	  	
		
	 2.   Delivery Schedule
	  	
		
	 3.   Price
	  	
		
	 4.   Payment
	  	
		
	 5.   Miscellaneous
	  	
		
	TABLE	  	
		
	 1.   Aircraft Information Table
	  	15
		
	 1B    Block B Aircraft Information Table
	  	4
		
	 1C    Block C Aircraft Information Table
	  	13
		
	 1C1   Block C Aircraft Information Table (MSN [ * ])
	  	11
		
	 1C2   Block C Aircraft Information Table
	  	16
		
	 1D   Block D Aircraft Information Table
	  	16
		
	EXHIBIT	  	
		
	 A.  Aircraft Configuration
	  	4
		
	 A1.  Aircraft Configuration (Block B Aircraft)
	  	4
		
	 A2.  Aircraft Configuration (Block C Aircraft except MSN [ * ])
	  	11
		
	 A3.  Aircraft Configuration (Block C Aircraft w/ MSN [ * ])
	  	11
		
	 A4.  Aircraft Configuration (Block D Aircraft)
	  	12
		
	 B.  Aircraft Delivery Requirements and Responsibilities
	  	
		
	SUPPLEMENTAL EXHIBITS	  	
		
	 AE1.   Escalation Adjustment/Airframe and Optional Features
	  	
		
	 CS1. Customer Support Variables
	  	
		
	 EE1. Engine Escalation/Engine Warranty and Patent Indemnity
	  	
		
	 SLP1. Service Life Policy Components
	  	

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

     

    					
	P.A. No. 3157	  	1	  	SA 16
	
	BOEING PROPRIETARY

   

  
   

  

  
   
      

     

    					
	 	  	 	  	SA
	 	  	 	  	 NUMBER

	LETTER AGREEMENT	  	
			
	3157-01	  	777 Spare Parts Initial Provisioning	  	
			
	3157-02	  	Demonstration Flight Waiver	  	
			
	6-1162-RCN-1785	  	[ * ]	  	
			
	6-1162-RCN-1789	  	 Option Aircraft
 Attachment to Letter 6-1162-RCN-1789
	  	Exercised in SA # 4
			
	6-1162-RCN-1790	  	Special Matters	  	
			
	6-1162-RCN-1791	  	Performance Guarantees	  	4
			
	6-1162-RCN-1792	  	Liquidated Damages Non-Excusable Delay	  	
			
	6-1162-RCN-1793	  	Open Configuration Matters	  	
			
	6-1162-RCN-1795	  	AGTA Amended Articles	  	
			
	6-1162-RCN-1796	  	777 First-Look Inspection Program	  	
			
	6-1162-RCN-1797	  	Licensing and Customer Supplemental Type Certificates	  	
			
	6-1162-RCN-1798	  	777 Boeing Converted Freighter	  	Deleted in SA # 4
			
	6-1162-RCN-1798 R1	  	777 Boeing Converted Freighter	  	4
			
	6-1162-RCN-1799	  	[ * ]	  	
			
	6-1162-RRO-1062	  	Option Aircraft	  	4
			
		  	Attachment to Letter 6-1162-RRO-1062	  	16
			
	6-1162-RRO-1065	  	Performance Guarantees for Block B Aircraft	  	4

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

     

    					
	P.A. No. 3157	  	2	  	SA 16
	
	BOEING PROPRIETARY

   

  
   

  

  
   
      

     

    					
	6-1162-RRO-1066R1	  	Special Matters for Block B Aircraft	  	4
			
	6-1162-RRO-1067	  	Special Matters for Option Aircraft detailed in Letter Agreement 6-1162-RRO-1062	  	4
			
	6-1162-RRO-1068	  	Special Provision — Block B Aircraft	  	4
			
	FED-PA-LA-1000790R 2 	  	Special Matters for Block C Aircraft	  	16
			
	FED-PA-LA-1001683 R1 	  	Special Matters for Block D Aircraft	  	16
			
	6-1162-RRO-1144R 4 	  	[ * ]	  	16

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

     

    					
	P.A. No. 3157	  	3	  	SA 16
	
	BOEING PROPRIETARY

   

  
   

  

  
   
      

     

    					
	 SUPPLEMENTAL AGREEMENTS
	  	 DATED AS OF:

	 Supplemental Agreement No. 1
	  	May 12, 2008
		
	 Supplemental Agreement No. 2
	  	July 14, 2008
		
	 Supplemental Agreement No. 3
	  	December 15, 2008
		
	 Supplemental Agreement No. 4
	  	January 9, 2009
		
	 Supplemental Agreement No. 5
	  	January 11, 2010
		
	 Supplemental Agreement No. 6
	  	March 17, 2010
		
	 Supplemental Agreement No. 7
	  	March 17, 2010
		
	 Supplemental Agreement No. 8
	  	April 30, 2010
		
	 Supplemental Agreement No. 9
	  	June 18, 2010
		
	 Supplemental Agreement No. 10
	  	June 18, 2010
		
	 Supplemental Agreement No. 11
	  	August 19, 2010
		
	 Supplemental Agreement No. 12
	  	September 3, 2010
		
	 Supplemental Agreement No. 13
	  	August 27, 2010
		
	 Supplemental Agreement No. 14
	  	October 25, 2010
		
	 Supplemental Agreement No. 15
	  	October 29, 2010
		
	 Supplemental Agreement No. 16
	  	January 31, 2011

     

    					
	P.A. No. 3157	  	4	  	SA 16
	
	BOEING PROPRIETARY

   

  
   

  

  
   
      

    January 11, 2011 

    6-1162-RRO-1144 R4 

    The Boeing Company 

    P.O. Box 3707 

    Seattle,WA 98124-2207 

    Federal Express Corporation 

    2955 Republican Drive 

    Memphis, TN 38118 

     

    			
	Attention:	  	 Mr. Kevin Burkhart
 Managing Director — Aircraft Acquisitions & Sales

		
	Subject:	  	 [ * ]

		
	Reference:      	  	 Supplemental Agreement No. 8, No. 13, No. 14, No. 15 and No. 16 to Purchase Agreement 3157, dated November 7, 2006, between The Boeing Company (Boeing) and Federal Express Corporation (Customer) relating to Model 777-FREIGHTER Aircraft (the Aircraft)

    Dear Mr. Burkhart: 

    In consideration of the strong business relationship between Boeing and Customer and Customer executing Supplemental Agreements No. 8, No. 13, No. 14, No. 15 and No. 16, Boeing has agreed to [ * ]. 

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

     

    					
	 P.A. No. 3157, 6-1162-RRO-1144R4
 [*]
	  		  	 SA-16
 Page 1

		  	BOEING PROPRIETARY	  	

   

  
   

  

  
   
     

      

     

    Further Customer agrees and acknowledges that Attachment A can not be revised/modified in any way unless specifically agreed to in writing by Boeing. 

    Very truly yours, 

    THE BOEING COMPANY 

     

    			
	By	 	 /s/ STUART C. ROSS

		
		 	Its Attorney-In-Fact
	
	ACCEPTED AND AGREED TO this
	
	Date: January 31, 2011
	
	FEDERAL EXPRESS CORPORATION
		
	By	 	 /s/ PHILLIP C. BLUM

		
		 	Its VP, Aircraft Acquisitions & SAO

    Attachment 

    P.A. 3157, 6-1162-RRO-1144R4 

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

     

    					
		  		  	SA-16
			
	[*]	  	BOEING PROPRIETARY	  	Page 2

   

  
   

  

  
   
    					
	   
	 		 	 The Boeing Company
 P.O. Box 3707
 Seattle, WA 98124-2207

    FED-PA—LA-1001683 R1 

    Federal Express Corporation 

    3610 Hacks Cross 

    Memphis TN 38125 

     

    			
	Subject:	  	Special Matters for Block D Aircraft
		
	Reference:      	  	Purchase Agreement No. 3157 (the Purchase Agreement) between The Boeing Company (Boeing) and Federal Express Corporation (Customer) relating to Model 777-FREIGHTER aircraft (the Aircraft)

    This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement. All terms used but not defined in this Letter Agreement have the same meaning as in the Purchase Agreement. 

    [ * ] 

    7. ADVANCE PAYMENT SETOFF RIGHTS 

    Customer agrees that if it defaults on any monetary obligation under the Purchase Agreement and has failed to cure such default within five (5) calendar days of receiving written notice from Boeing, then Boeing may apply any/all advance payments paid by Customer to cure, in part or in whole, any default made with respect to any Aircraft or other obligation in the Purchase Agreement. In the event that Boeing exercises such setoff rights and applies any advance payments to cure any such default by Customer with respect to an Aircraft or other obligation in the Purchase Agreement, Boeing will be entitled to require Customer to replace within ten days of written notice, the amount of advance payments applied to cure such default such that the total amount of advance payments will be restored to the aggregate amount of advance payments owed at that time by Customer. 

    [ * ] 

    9. PUBLIC ANNOUNCEMENT 

    Notwithstanding the terms in the Purchase Agreement, neither Party shall, except as required by law, in any manner advertise or make any public statement regarding Customer’s purchase of the Block D Aircraft without the prior written consent of the other Party. Neither Party shall disclose any details of this Agreement to any third party, except as may be authorized in writing by an authorized officer of the other Party or as set forth in the Confidential Treatment paragraph below. 

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

     

    					
	P.A. 3157, FED-PA-LA-1001683R1	  		  	SA-16
	 Special Matters for Block D Aircraft
	  		  	Page 1
			
		  	BOEING PROPRIETARY	  	

   

  
   

  

  
   
      

    Confidential Treatment. Customer understands that certain commercial and financial information contained in this Letter Agreement /and attachment(s) hereto is considered by Boeing as confidential. Customer agrees that it will treat this Letter Agreement and the information contained herein as confidential and will not, without the prior written consent of Boeing, disclose this Letter Agreement or any information contained herein to any other person or entity. Notwithstanding the above, Boeing acknowledges that Customer may disclose this Letter Agreement / and attachment(s) hereto to FedEx Corporation, its Board of Directors, and to Customer’s and FedEx Corporation’s professional advisors who are under a duty of confidentiality with respect thereto. 

    10. EFFECTIVENESS 

    This letter agreement shall not become effective unless and until Supplemental Agreement No. 16 becomes effective. 

    If the foregoing correctly sets forth your understanding of our agreement with respect to matters described above, please indicate your acceptance and approval below. 

    Very truly yours, 

    THE BOEING COMPANY 

     

    			
	By	 	 /s/ STUART C. ROSS

		
		 	Its Attorney-In-Fact
	
	ACCEPTED AND AGREED TO this
	
	Date: January 31, 2011
	
	FEDERAL EXPRESS CORPORATION
		
	By	 	 /s/ PHILLIP C. BLUM

		
		 	Its VP, Aircraft Acquisitions & SAO

     

    					
	P.A. 3157, FED-PA-LA-1001683R1	  		  	SA-16
	 Special Matters for Block D Aircraft
	  		  	Page 2
			
		  	BOEING PROPRIETARY	  	

   

  
   

  

  
   
    					
	   
	 		 	 The Boeing Company
 P.O. Box 3707
 Seattle, WA 98124-2207

    FED-PA—LA-1000790R 2 

    Federal Express Corporation 

    3610 Hacks Cross 

    Memphis TN 38125 

    Subject: Special Matters for Block C Aircraft 

    Reference: Purchase Agreement No. 3157 (the Purchase Agreement) between The Boeing Company (Boeing) and Federal Express Corporation (Customer) relating to Model 777-FREIGHTER aircraft (the Aircraft) 

    This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement. All terms used but not defined in this Letter Agreement have the same meaning as in the Purchase Agreement. 

    [ * ] 

    9. ADVANCE PAYMENT SETOFF RIGHTS 

    Customer agrees that if it defaults on any monetary obligation under the Purchase Agreement and has failed to cure such default within five (5) calendar days of receiving written notice from Boeing, then Boeing may apply any/all advance payments paid by Customer to cure, in part or in whole, any default made with respect to any Aircraft or other obligation in the Purchase Agreement. In the event that Boeing exercises such setoff rights and applies any advance payments to cure any such default by Customer with respect to an Aircraft or other obligation in the Purchase Agreement, Boeing will be entitled to require Customer to replace within ten days of written notice, the amount of advance payments applied to cure such default such that the total amount of advance payments will be restored to the aggregate amount of advance payments owed at that time by Customer. 

    [ * ] 

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

     

    					
	P.A. 3157, FED-PA-LA-1000790R2	  		  	SA-16
	 Special Matters for Block C Aircraft
	  		  	Page 1
			
		  	BOEING PROPRIETARY	  	

   

  
   

  

  
   
      

    11. PUBLIC ANNOUNCEMENT 

    Notwithstanding the terms in the Purchase Agreement, neither Party shall , except as required by law, in any manner advertise or make any public statement regarding Customer’s purchase of the Block C Aircraft without the prior written consent of the other Party. Neither Party shall disclose any details of this Agreement to any third party, except as may be authorized in writing by an authorized officer of the other Party or as set forth in the Confidential Treatment paragraph below. 

    Confidential Treatment. Customer understands that certain commercial and financial information contained in this Letter Agreement /and attachment(s) hereto is considered by Boeing as confidential. Customer agrees that it will treat this Letter Agreement and the information contained herein as confidential and will not, without the prior written consent of Boeing, disclose this Letter Agreement or any information contained herein to any other person or entity. Notwithstanding the above, Boeing acknowledges that Customer may disclose this Letter Agreement / and attachment(s) hereto to FedEx Corporation, its Board of Directors, and to Customer’s and FedEx Corporation’s professional advisors who are under a duty of confidentiality with respect thereto. 

    If the foregoing correctly sets forth your understanding of our agreement with respect to matters described above, please indicate your acceptance and approval below. 

    12. EFFECTIVENESS 

    This letter agreement shall not become effective unless and until Supplemental Agreement No. 16 becomes effective. 

     

    					
	P.A. 3157, FED-PA-LA-1000790R2	  		  	SA-16
	 Special Matters for Block C Aircraft
	  		  	Page 2
			
		  	BOEING PROPRIETARY	  	

   

  
   

  

  
   
      

     

    			
	Very truly yours,
	
	THE BOEING COMPANY
		
	By	 	 /s/ STUART C. ROSS

		
		 	Its Attorney-In-Fact
	
	ACCEPTED AND AGREED TO this
	
	Date: January 31, 2011
	
	FEDERAL EXPRESS CORPORATION
		
	By	 	 /s/ PHILLIP C. BLUM

		
		 	Its VP, Aircraft Acquisitions & SAO

     

    					
	P.A. 3157, FED-PA-LA-1000790R2	  		  	SA-16
	 Special Matters for Block C Aircraft
	  		  	Page 3
			
		  	BOEING PROPRIETARY	  	

   

  
   

  

  
   
    Supplemental Agreement No. 17 

    to 

    Purchase Agreement No. 3157 

    between 

    The Boeing Company 

    And 

    Federal Express Corporation 

    Relating to Boeing Model 777-FREIGHTER Aircraft 

    THIS SUPPLEMENTAL AGREEMENT, entered into as of the 14 th day of February 2011, by and between THE BOEING COMPANY (Boeing) and FEDERAL EXPRESS CORPORATION (Customer); 

    W I T N E S S E T H : 

    WHEREAS, the parties entered into that certain Purchase Agreement No. 3157, dated November 7, 2006 (Purchase Agreement), relating to the purchase and sale of certain Boeing Model 777-FREIGHTER Aircraft (the Aircraft); 

    WHEREAS, the parties entered into an Aircraft General Terms Agreement, dated November 7, 2006, as incorporated by reference into the Purchase Agreement (AGTA); 

    WHEREAS, Customer anticipates, pursuant to that certain Purchase Agreement Assignment between [ * ] and Customer (Assignment Agreement), taking delivery from Boeing of one (1) new Boeing model 777-F aircraft with manufacturing serial number [ * ]; and 

    WHEREAS, Boeing and Customer desire that, for the purposes of post-delivery support and operation, [ * ]. 

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

     

    S17 - 1 

   

  
   

  

  
   
    Supplemental Agreement 17 to 

    Purchase Agreement No. 3157 

    NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto agree to supplement the Purchase Agreement as follows: 

    All terms used herein and in the Purchase Agreement, and not defined herein, shall have the same meaning as in the Purchase Agreement. 

    1. AGTA 

    The entire AGTA, and as amended by Letter Agreement No. 6-1162-RCN-1795 entitled “AGTA Amended Articles”, shall pertain and be applicable to Customer with respect to [ * ], subject to the following: 

    [ * ] 

    2. Purchase Agreement 

    The following provisions of the Purchase Agreement will be applicable to Customer with respect to [ * ]. 

    3. [ * ] 

    4. Pre-Delivery Inspections, Customer Walk, Customer Flight(s) and Delivery Commitment Letter 

    Customer shall be entitled, subject to Boeing providing its concurrence, not to be unreasonably withheld, conditioned or delayed, to a Services Agreement as presented by Customer and [ * ] to Boeing, to [ * ]. 

    5. [ * ] 

    6. Document Review 

    Prior to the delivery of [ * ], Boeing and [ * ] will conduct a document review, [ * ]. 

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

     

    S17 - 2 

   

  
   

  

  
   
    Supplemental Agreement 17 to 

    Purchase Agreement No. 3157 

    7. Disclaimer and Release and Exclusion of Consequential and Other Damages 

    The DISCLAIMER AND RELEASE and EXCLUSION OF CONSEQUENTIAL AND OTHER DAMAGES in Article 11 of Part 2 of Exhibit C to the Aircraft General Terms Agreement and the insurance provisions in Article 8.2 of the Aircraft General Terms Agreement (as amended by Letter Agreement No. 6-1162-RCN-1795 entitled AGTA Amended Articles), will apply to and be binding on Customer and applicable to [ * ]. 

    8. Other Rights and Obligations 

    For the sake of clarity, it is the parties’ intent to have [ * ] governed under [ * ]. 

    9. Effectiveness 

    Except with respect to matters, rights, obligations, mutual covenants and entitlements expressed herein pertaining to pre-delivery matters (which shall be effective as of the date Boeing and Customer enter this Supplemental Agreement No. 17), the matters, rights, obligations, mutual covenants and entitlements of Boeing and Customer shall be effective upon [ * ]. 

    EXECUTED as of the day and year first above written. 

     

    											
	THE BOEING COMPANY	  		  	FEDERAL EXPRESS CORPORATION	 	
						
	By:	  	 /s/ STUART C. ROSS
	  	        	  	By:	  	 /s/ PHILLIP C. BLUM
	 	
						
		  	Its: Attorney-In-Fact	  		  		  	Its: VP, Aircraft Acquisitions & SAO	 	                                      
 

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

    Omitted Attachments 

    Certain attachments to this exhibit regarding delivery and pricing of certain B777F aircraft manufactured by The Boeing Company for FedEx have been omitted pursuant to Item 601(a)(5) of Regulation S-K because the information contained therein is not material and is not otherwise publicly disclosed. FedEx will furnish supplementally copies of these attachments to the Securities and Exchange Commission or its staff upon request. 

     

    S17 - 3EX-10.27

  
   
    Exhibit 10.27 

    INFORMATION IN THIS EXHIBIT IDENTIFIED BY BRACKETS IS CONFIDENTIAL AND HAS BEEN EXCLUDED PURSUANT TO ITEM 601(B)(10)(IV) OF REGULATION S-K BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) THE TYPE THAT FEDEX TREATS AS PRIVATE OR CONFIDENTIAL. 

    Supplemental Agreement No. 18 

    to 

    Purchase Agreement No. 3157 

    between 

    The Boeing Company 

    And 

    Federal Express Corporation 

    Relating to Boeing Model 777-FREIGHTER Aircraft 

    THIS SUPPLEMENTAL AGREEMENT, entered into as of the 30 th day of March, 2011, by and between THE BOEING COMPANY (Boeing) and FEDERAL EXPRESS CORPORATION (Customer); 

    W I T N E S S E T H : 

    WHEREAS, the parties entered into that certain Purchase Agreement No. 3157, dated November 7, 2006 (Purchase Agreement), relating to the purchase and sale of certain Boeing Model 777-FREIGHTER Aircraft (the Aircraft); and 

    WHEREAS, Customer desires to re-schedule the delivery of one (1) Aircraft (Rescheduled Aircraft) as follows; 

     

    					
	 Serial
 Number
	 	 Current Delivery
 Month per SA # 12
	 	 Revised Delivery
 Month

	[*]	 	[*]	 	[*]

    NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto agree to supplement the Purchase Agreement as follows: 

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

     

    S18-1 

   

  
   

  

  
   
    All terms used herein and in the Purchase Agreement, and not defined herein, shall have the same meaning as in the Purchase Agreement. 

     

    	1.	 Remove and replace, in its entirety, the “Table of Contents” with the revised Table of Contents attached hereto to reflect the changes made by this Supplemental Agreement No. 18. 

     

    	2.	 Remove and replace, in its entirety, Table 1-D to the Purchase Agreement with the revised Table 1-D attached hereto to reflect changes relating to the Rescheduled Aircraft. 

     

    	3.	 As a result of accelerating the Rescheduled Aircraft, advance payments in the amount of [ * ] U.S. dollars ([ * ]) will be due within two (2) business days after Customer’s acceptance of this Supplemental Agreement No. 18. 

     

    	4.	 Customer and Boeing hereby acknowledge and confirm that Letter Agreement 6-1162-RRO-1144R4 is hereby cancelled and replaced in its entirety with Letter Agreement 6-1162-RRO-1144R5. 

     

    	5.	 Boeing’s offer to re-schedule the Rescheduled Aircraft will expire on March 31, 2011. 

    EXECUTED as of the day and year first above written. 

     

    									
	THE BOEING COMPANY	 		 	FEDERAL EXPRESS CORPORATION
					
	By:	 	 /s/ STUART C. ROSS
	 		 	By:	 	 /s/ PHILLIP C. BLUM

	Its:	 	Attorney-In-Fact	 		 	Its:	 	VP, Aircraft Acquisitions & SAO

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

     

    S18-2 

   

  
   

  

  
   
    TABLE OF CONTENTS 

     

    					
	 	  	SA	 
	 	  	NUMBER	 
		
	 ARTICLES
	  			
		
	 1. Quantity, Model and Description
	  			
		
	 2. Delivery Schedule
	  			
		
	 3. Price
	  			
		
	 4. Payment
	  			
		
	 5. Miscellaneous
	  			
		
	 TABLE
	  			
		
	 1. Aircraft Information Table
	  	 	15	 
		
	 1B Block B Aircraft Information Table
	  	 	4	 
		
	 1C Block C Aircraft Information Table
	  	 	13	 
		
	 1C1 Block C Aircraft Information Table (MSN [ * ])
	  	 	11	 
		
	 1C2 Block C Aircraft Information Table
	  	 	16	 
		
	 1D Block D Aircraft Information Table
	  	 	18	 
		
	 EXHIBIT
	  			
		
	 A. Aircraft Configuration
	  	 	4	 
		
	 A1. Aircraft Configuration (Block B Aircraft)
	  	 	4	 
		
	 A2. Aircraft Configuration (Block C Aircraft except MSN [ * ])
	  	 	11	 
		
	 A3. Aircraft Configuration (Block C Aircraft w/ MSN [ * ])
	  	 	11	 
		
	 A4. Aircraft Configuration (Block D Aircraft)
	  	 	12	 
		
	 B. Aircraft Delivery Requirements and Responsibilities
	  			
		
	 SUPPLEMENTAL EXHIBITS
	  			
		
	 AE1. Escalation Adjustment/Airframe and Optional Features
	  			
		
	 CS1. Customer Support Variables
	  			
		
	 EE1. Engine Escalation/Engine Warranty and Patent Indemnity
	  			
		
	 SLP1. Service Life Policy Components
	  			

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

     

    					
	P.A. No. 3157	 	1	 	SA 18
	
	BOEING PROPRIETARY

   

  
   

  

  
   
     

    							
	 	 	 	  	SA	 
	 	 	 	  	NUMBER	 
			
	LETTER AGREEMENT	 		  			
			
	3157-01	 	777 Spare Parts Initial Provisioning	  			
			
	3157-02	 	Demonstration Flight Waiver	  			
			
	6-1162-RCN-1785	 	[*]	  			
			
	6-1162-RCN-1789	 	Option Aircraft Attachment to Letter 6-1162-RCN-1789	  	 	Exercised in SA # 4	 
			
	6-1162-RCN-1790	 	Special Matters	  			
			
	6-1162-RCN-1791	 	Performance Guarantees	  	 	4	 
			
	6-1162-RCN-1792	 	Liquidated Damages Non-Excusable Delay	  			
			
	6-1162-RCN-1793	 	Open Configuration Matters	  			
			
	6-1162-RCN-1795	 	AGTA Amended Articles	  			
			
	6-1162-RCN-1796	 	777 First-Look Inspection Program	  			
			
	6-1162-RCN-1797	 	Licensing and Customer Supplemental Type Certificates	  			
			
	6-1162-RCN-1798	 	777 Boeing Converted Freighter	  	 	Deleted in SA # 4	 
			
	6-1162-RCN-1798 R1	 	777 Boeing Converted Freighter	  	 	4	 
			
	6-1162-RCN-1799	 	[*]	  			
			
	6-1162-RRO-1062	 	Option Aircraft	  	 	4	 
			
		 	Attachment	  	 	16	 
			
	6-1162-RRO-1065	 	Performance Guarantees for Block B Aircraft	  	 	4	 
			
	6-1162-RRO-1066R1	 	Special Matters for Block B Aircraft	  	 	4	 
			
	6-1162-RRO-1067	 	Special Matters for Option Aircraft detailed in Letter Agreement 6-1162-RRO-1062	  	 	4	 
			
	6-1162-RRO-1068	 	Special Provision — Block B Aircraft	  	 	4	 
			
	FED-PA—LA-1000790R2	 	Special Matters for Block C Aircraft 16	  			
			
	FED-PA—LA-1001683R1	 	Special Matters for Block D Aircraft 16	  			
			
	6-1162-RRO-1144R 5 	 	[*]	  	 	18	 

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

     

    					
	P.A. No. 3157	 	2	 	SA 18
	
	BOEING PROPRIETARY

   

  
   

  

  
   
    			
	 SUPPLEMENTAL AGREEMENTS
	  	 DATED AS OF:

		
	 Supplemental Agreement No. 1
	  	May 12, 2008
		
	 Supplemental Agreement No. 2
	  	July 14, 2008
		
	 Supplemental Agreement No. 3
	  	December 15, 2008
		
	 Supplemental Agreement No. 4
	  	January 9, 2009
		
	 Supplemental Agreement No. 5
	  	January 11, 2010
		
	 Supplemental Agreement No. 6
	  	March 17, 2010
		
	 Supplemental Agreement No. 7
	  	March 17, 2010
		
	 Supplemental Agreement No. 8
	  	April 30, 2010
		
	 Supplemental Agreement No. 9
	  	June 18, 2010
		
	 Supplemental Agreement No. 10
	  	June 18, 2010
		
	 Supplemental Agreement No. 11
	  	August 19, 2010
		
	 Supplemental Agreement No. 12
	  	September 3, 2010
		
	 Supplemental Agreement No. 13
	  	August 27, 2010
		
	 Supplemental Agreement No. 14
	  	October 25, 2010
		
	 Supplemental Agreement No. 15
	  	October 29, 2010
		
	 Supplemental Agreement No. 16
	  	January 31, 2011
		
	 Supplemental Agreement No. 17
	  	February 14, 2011
		
	 Supplemental Agreement No. 18
	  	March 30, 2011

     

    					
	P.A. No. 3157	 	3	 	SA 18
	
	BOEING PROPRIETARY

   

  
   

  

  
   
    					
		  		  	 The Boeing Company
 P. O. Box 3707
 Seattle, WA 98124-2207

     

      

    March 25, 2011 

    6-1162-RRO-1144 R5 

    Federal Express Corporation 

    2955 Republican Drive 

    Memphis, TN 38118 

     

    			
	Attention:	  	 Mr. Kevin Burkhart
 Managing Director — Aircraft Acquisitions & Sales

		
	Subject:	  	[*]
		
	Reference:	  	Supplemental Agreement No. 8, Nos. 13 through No. 16 and No. 18 to Purchase Agreement 3157, dated November 7, 2006, between The Boeing Company (Boeing) and Federal Express Corporation (Customer) relating to Model 777-FREIGHTER Aircraft (the Aircraft)

    Dear Mr. Burkhart: 

    In consideration of the strong business relationship between Boeing and Customer and Customer executing Supplemental Agreements No. 8, Nos. 13 through No. 16 and No. 18, Boeing has agreed to [*]. 

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

     

    					
	 P.A. No. 3157, 6-1162-RRO-1144R5
 [*]
	 	    	 	 SA 18
 Page 1

	
	BOEING PROPRIETARY

   

  
   

  

  
   
      

    Further Customer agrees and acknowledges that Attachment A can not be revised/modified in any way unless specifically agreed to in writing by Boeing. 

     

    			
	Very truly yours,
	
	THE BOEING COMPANY
		
	By	 	 /s/ STUART C. ROSS

	Its	 	Attorney-In-Fact
	
	ACCEPTED AND AGREED TO this
	
	Date: March 30th, 2011
	
	FEDERAL EXPRESS CORPORATION
		
	By	 	 /s/ PHILLIP C. BLUM

	Its	 	VP, Aircraft Acquisitions & SAO
	
	Attachment

     

    	*	 Blank spaces contained confidential information that has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is both (i) not material and (ii) the type that FedEx treats as private or confidential. 

    Omitted Attachments 

    Certain attachments to this exhibit regarding delivery and pricing of certain B777F aircraft manufactured by The Boeing Company for FedEx have been omitted pursuant to Item 601(a)(5) of Regulation S-K because the information contained therein is not material and is not otherwise publicly disclosed. FedEx will furnish supplementally copies of these attachments to the Securities and Exchange Commission or its staff upon request. 

     

    					
	 P.A. No. 3157- 6-1162-RRO-1144R5
 [*]
	 	    	 	 SA 18
 Page 2

	
	BOEING PROPRIETARY

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