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Packages per Day 800,000 Error Rate 1% Error Packages Refund Amount Assitional Restitution Amount_$ Total Payout 8,000 $14.00 350.00 $364.00 Annual Refund $ 40,880,000

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Packages per Day 800,000 Error Rate 1% Error Packages Refund Amount Assitional Restitution Amount_$ Total Payout 8,000 $14.00 350.00 $364.00 Annual Refund $ 40,880,000 Annual Total Payout $1,062,880,000 Question: Avg per day, does this smooth out over weekends and holidays? Note, this variable will change based on assumptions about: Additional Restitution Amount (In addition to the refund) 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 460 480 $ 500 0.50% 1.00% Cost of Guarantee - By Error Rate and Restitution Premium (Smm) Error Rate 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% Is this self-report by the sender/customer? Or does FedEx have a way of knowing when something goes wrong? Is this the self-report rate?

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