Document:

exv4w1

 

Exhibit 4.1

OMNIBUS INSTRUMENT

     WHEREAS, the parties named herein desire to enter into certain Program
Documents contained herein, each such document dated as of this 2nd day of
June, 2005, relating to the issuance by Principal Life Income
Fundings Trust 12 (the “Trust”) of Notes to investors under Principal Life’s secured notes
program;

     WHEREAS, the Trust is a trust and will be organized under and its
activities will be governed by the provisions of the Trust Agreement (set forth
in Section A of this Omnibus Instrument), dated as of the date of the Pricing
Supplement (attached to this Omnibus Instrument as Exhibit D) (the “Pricing
Supplement”), by and between the parties thereto indicated in Section F herein;

     WHEREAS, certain expense and indemnification arrangements between
Principal Life and the Trustee, on behalf of itself and on behalf of the Trust,
are governed pursuant to the provisions of the Expense and Indemnity Agreement
dated as of March 5, 2004, by and between Principal Life and the Trustee;

     WHEREAS, certain licensing arrangements between the Trust and Principal
Financial Services, Inc. will be governed pursuant to the provisions of the
License Agreement (set forth in Section B of this Omnibus Instrument), dated as
of the date of the Pricing Supplement, by and between the parties thereto
indicated in Section F herein;

     WHEREAS, certain custodial arrangements of the Funding Agreement and the
Guarantee will be governed pursuant to the provisions of the Custodial
Agreement (the “Custodial Agreement”) dated as of March 5, 2004 by and among
Bankers Trust Company, N.A., acting as custodian (the “Custodian”), the
Indenture Trustee and the Trustee, on behalf of the Trust;

     WHEREAS, the Notes will be issued pursuant to the Indenture (set forth in
Section C of this Omnibus Instrument), dated as of the Original Issue Date, by
and between the parties thereto indicated in Section F herein;

     WHEREAS, the sale of the Notes will be governed by the Terms Agreement
(set forth in Section D of this Omnibus Instrument), dated the date of the
Pricing Supplement, by and among the parties thereto indicated in Section F
herein; and

     WHEREAS, certain agreements relating to the Notes, the Funding Agreement
and the Guarantee are set forth in the Coordination Agreement (set forth in
Section E of this Omnibus Instrument), dated as of the date of the Pricing
Supplement, by and among the parties thereto indicated in Section F herein.

     All capitalized terms used herein and not otherwise defined will have the
meanings set forth in the Indenture.

[Remainder of Page Intentionally Left Blank.]

 

 

SECTION A

TRUST AGREEMENT

     This TRUST AGREEMENT (this “Trust Agreement”), dated as of the date of the
Pricing Supplement, is entered into by and between GSS Holdings II, Inc., a
Delaware corporation, as trust beneficial owner (the “Trust Beneficial Owner”),
and U.S. Bank Trust National Association, a national banking association, as
Trustee (the “Trustee”).

W I T N E S S E T H:

     WHEREAS, the Trust Beneficial Owner and the Trustee desire to authorize
the issuance of a Trust Beneficial Interest and a series of Notes in connection
with the entry into this Trust Agreement;

     WHEREAS, all things necessary to make this Trust Agreement a valid and
legally binding agreement of the Trustee and the Trust Beneficial Owner,
enforceable in accordance with its terms, have been done;

     WHEREAS, the parties intend to provide for, among other things, (i) the
issuance and sale of the Notes (pursuant to the Indenture, the Distribution
Agreement and the related Terms Agreement) and the Trust Beneficial Interest,
(ii) the use of the proceeds of the sale of the Notes and Trust Beneficial
Interest to acquire the Funding Agreement, the payment obligations of which
will be fully and unconditionally guaranteed by the Guarantee, and (iii) all
other actions deemed necessary or desirable in connection with the transactions
contemplated by this Trust Agreement; and

     WHEREAS, the parties hereto desire to incorporate by reference those
certain Standard Trust Terms, dated as of March 5, 2004, and attached to the
Omnibus Instrument as Exhibit A (the “Standard Trust Terms”) and all
capitalized terms not otherwise defined herein (including the recitals hereof)
shall have the meanings set forth in the Standard Trust Terms (the Standard
Trust Terms and this Trust Agreement, collectively, the “Trust Agreement”).

     NOW, THEREFORE, in consideration of the agreements and obligations set
forth herein and for other good and valuable consideration, the sufficiency of
which are hereby acknowledged, each party hereby agrees as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. All terms, provisions and
agreements set forth in the Standard Trust Terms (except to the extent
expressly modified herein) are hereby incorporated herein by reference with the
same force and effect as though fully set forth herein. To the extent that the
terms set forth in Article 2 of this Trust Agreement are inconsistent with the
terms of the Standard Trust Terms, the terms set forth in Article 2 herein
shall apply.

A-1

 

ARTICLE 2

     Section 2.01 Name. The Trust created and governed by the Trust Agreement
shall be the trust specified in the Omnibus Instrument. The name of the Trust
shall be the name specified in the first paragraph of the Omnibus Instrument,
as such name may be modified from time to time by the Trustee following written
notice to the Trust Beneficial Owner.

     Section 2.02 Jurisdiction. The Trust is hereby organized in, and formed
under and pursuant to, the laws of the State of New York.

     Section 2.03 Initial Capital Contribution and Ownership. The Trust
Beneficial Owner has paid or has caused to be paid to, or to an account at the
direction of, the Trustee, on the date hereof, the sum of $15 (or, in the case
of Notes issued with original issue discount, such amount multiplied by the
issue price of the Notes). The Trustee hereby acknowledges receipt in trust
from the Trust Beneficial Owner, as of the date hereof, of the foregoing
contribution, which shall be used along with the proceeds from the sale of the
series of Notes to purchase the Funding Agreement. Upon the creation of the
Trust and the registration of the Trust Beneficial Interest in the Securities
Register (as defined in the Trust Agreement) by the Registrar in the name of
the Trust Beneficial Owner, the Trust Beneficial Owner shall be the sole
beneficial owner of the Trust.

     Section 2.04 Acknowledgment. The Trustee, on behalf of the Trust,
expressly acknowledges its duties and obligations set forth in the Standard
Trust Terms incorporated herein.

     Section 2.05 Additional Terms.

     None

     Section 2.06 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to the Trust Agreement will enter into the Trust Agreement by
executing the Omnibus Instrument.

     By executing the Omnibus Instrument, the Trustee and the Trust Beneficial
Owner hereby agree that the Trust Agreement will constitute a legal, valid and
binding agreement between the Trustee and the Trust Beneficial Owner.

     All terms relating to the Trust or the series of Notes not otherwise
included in the Trust Agreement will be as specified in the Omnibus Instrument
or Pricing Supplement, as indicated herein.

A-2

 

     Section 2.07 Governing Law. The Trust Agreement will be governed by, and
construed in accordance with, the laws of the State of New York.

     Section 2.08 Counterparts. The Trust Agreement, through the Omnibus
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

[Remainder of Page Intentionally Left Blank.]

A-3

 

SECTION B

LICENSE AGREEMENT

     This LICENSE AGREEMENT (this “License Agreement”), dated as of the date of
the Pricing Supplement, is entered into by and between Principal Financial
Services, Inc., an Iowa corporation with its principal place of business at 711
High Street, Des Moines, Iowa 50392 (the “Licensor”), and the Principal Life
Income Fundings Trust specified in the Omnibus Instrument (the “Licensee”).

W I T N E S S E T H:

     WHEREAS, the Licensor is the owner of certain trademarks and service marks
and registrations and pending applications therefor, and may acquire additional
trademarks and service marks in the future, all as described more fully below;

     WHEREAS, the Licensee desires to use certain of the Licensor’s trademarks
and service marks in connection with the Licensee’s activities, as described
more fully below;

     WHEREAS, the Licensor and the Licensee wish to formalize the agreement
between them regarding the Licensee’s use of the Licensor’s marks; and

     WHEREAS, the parties hereto desire to incorporate by reference those
certain Standard License Agreement Terms, dated March 5, 2004, and attached to
the Omnibus Instrument as Exhibit B (the “Standard License Agreement Terms”)
and all capitalized terms not otherwise defined herein (including the recitals
hereof) shall have the meanings set forth in the Standard License Agreement
Terms (the Standard License Agreement Terms and this License Agreement,
collectively, the “License Agreement”).

     NOW, THEREFORE, in consideration of the mutual promises set forth herein
and for other good and valuable consideration, the sufficiency and receipt of
which are hereby acknowledged, each party hereby agrees as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. All terms, provisions and
agreements set forth in the Standard License Agreement Terms (except to the
extent expressly modified herein) are hereby incorporated herein by reference
with the same force and effect as though fully set forth herein. To the extent
that the terms set forth in Article 2 of this License Agreement are
inconsistent with the terms of the Standard License Agreement Terms, the terms
set forth in Article 2 herein shall apply.

ARTICLE 2

     Section 2.01 Additional Terms.

     None

B-1

 

     Section 2.02 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to the License Agreement will enter into the License Agreement
by executing the Omnibus Instrument.

     By executing the Omnibus Instrument, the Licensor and the Licensee hereby
agree that the License Agreement will constitute a legal, valid and binding
agreement between the Licensor and the Licensee.

     All terms relating to the Trust or the Notes not otherwise included in the
License Agreement will be as specified in the Omnibus Instrument or Pricing
Supplement, as indicated herein.

     Section 2.03 Counterparts. The License Agreement, through the Omnibus
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

[Remainder of Page Intentionally Left Blank.]

B-2

 

SECTION C

INDENTURE

     This INDENTURE (this “Indenture”) is entered into as of the Original Issue
Date by and between the Principal Life Income Fundings Trust specified in the
Omnibus Instrument (the “Trust”) and Citibank, N.A., as indenture trustee (the
“Indenture Trustee”).

     Citibank, N.A., in its capacity as indenture trustee, hereby accepts its
role as Registrar, Paying Agent, Transfer Agent and Calculation Agent
hereunder.

     References herein to “Indenture Trustee,” “Registrar,” “Transfer Agent,”
“Paying Agent” or “Calculation Agent” shall include the permitted successors
and assigns of any such entity from time to time.

W I T N E S S E T H:

     WHEREAS, the Trust has duly authorized the execution and delivery of this
Indenture to provide for the issuance of Notes;

     WHEREAS, all things necessary to make this Indenture a valid and legally
binding agreement of the Trust and the other parties to this Indenture,
enforceable in accordance with its terms, have been done, and the Trust
proposes to do all things necessary to make the Notes, when executed by the
Trust and authenticated and delivered pursuant hereto, valid and legally
binding obligations of the Trust as hereinafter provided; and

     WHEREAS, the parties hereto desire to incorporate by reference those
certain Standard Indenture Terms, dated as of March 5, 2004, and attached to
the Omnibus Instrument as Exhibit C (the “Standard Indenture Terms”) and all
capitalized terms not otherwise defined herein (including the recitals hereof)
shall have the meanings set forth in the Standard Indenture Terms (the Standard
Indenture Terms and this Indenture, collectively, the “Indenture”).

     NOW, THEREFORE, for and in consideration of the premises and the purchase
of the Notes by the Holders thereof, it is mutually covenanted and agreed by
each of the parties hereto as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. All terms, provisions and
agreements set forth in the Standard Indenture Terms (except to the extent
expressly modified herein) are hereby incorporated herein by reference (with
the same force and effect as though fully set forth herein). To the extent
that the terms set forth in Article 2 of this Indenture are inconsistent with
the terms of the Standard Indenture Terms, the terms set forth in Article 2
herein shall apply.

C-1

 

ARTICLE 2

     Section 2.01 Agreement to be Bound. Each of the Trust, the Indenture
Trustee, the Registrar, the Transfer Agent, the Paying Agent and the
Calculation Agent hereby agrees to be bound by all of the terms, provisions and
agreements set forth in the Indenture, with respect to all matters contemplated
in the Indenture, including, without limitation, those relating to the issuance
of the below-referenced Notes.

     Section 2.02 Designation of the Trust, the Notes, the Funding Agreement
and the Guarantee. The Trust created by the Trust Agreement and referred to in
the Indenture is the Principal Life Income Fundings Trust specified in the
Omnibus Instrument. The Notes issued by the Trust and governed by the
Indenture shall be the Notes specified in the Pricing Supplement. The Funding
Agreement designated hereby is the Funding Agreement designated in the Pricing
Supplement dated as of the Original Issue Date between the Trust and Principal
Life. The Guarantee designated hereby is the Guarantee dated as of the Original
Issue Date of PFG.

     Section 2.03 Additional Terms.

     None

     Section 2.04 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to the Indenture will enter into the Indenture by executing
the Omnibus Instrument.

     By executing the Omnibus Instrument, the Indenture Trustee, the Registrar,
the Transfer Agent, the Paying Agent, the Calculation Agent and the Trust
hereby agree that the Indenture will constitute a legal, valid and binding
agreement between the Indenture Trustee, the Registrar, the Transfer Agent, the
Paying Agent, the Calculation Agent and the Trust.

     All terms relating to the Trust or the Notes not otherwise included in the
Indenture will be as specified in the Omnibus Instrument or Pricing Supplement,
as indicated herein.

     Section 2.05 Counterparts. The Indenture, through the Omnibus Instrument,
may be executed in any number of counterparts, each of which counterparts shall
be deemed to be an original, and all of which counterparts shall constitute one
and the same instrument.

[Remainder of Page Intentionally Left Blank.]

C-2

 

SECTION D

TERMS AGREEMENT

     This TERMS AGREEMENT (this “Terms Agreement”) is entered into as of the
Original Issue Date by and among Principal Life Insurance Company (“Principal
Life”), Principal Financial Group, Inc. (“PFG”), the Principal Life Income
Fundings Trust specified in the Omnibus Instrument (the “Trust”) and the
Purchasing Agent specified in the Pricing Supplement (the “Purchasing Agent”).

W I T N E S S E T H:

     WHEREAS, Principal Life, PFG and the agents named therein, including the
Purchasing Agent have entered into that certain Distribution Agreement dated
March 5, 2004 (the “Distribution Agreement”).

     NOW, THEREFORE, in consideration of the mutual promises set forth herein
and other good and valuable consideration, the sufficiency and receipt of which
are hereby acknowledged, each of the parties hereby agrees as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. The provisions of the
Distribution Agreement and the related definitions (unless otherwise specified
herein) are incorporated by reference herein and shall be deemed to have the
same force and effect as if set forth in full herein.

ARTICLE 2

     Section 2.01 Addition of Trust as Party to Distribution Agreement.

     Pursuant to Section 1 of the Distribution Agreement, each of the
undersigned parties hereby acknowledges and agrees that the Trust, upon
execution hereof by the Trust and the other parties to the Distribution
Agreement (other than any other trusts organized in connection with the
Registration Statement that are party thereto as of the date hereof), shall
become a Trust for purposes of the Distribution Agreement in accordance with
the terms thereof, in respect of the Notes, with all the authority, rights,
powers, duties and obligations of a Trust under the Distribution Agreement.
The Trust confirms that any agreement, covenant, acknowledgment, representation
or warranty under the Distribution Agreement applicable to the Trust is made by
the Trust at the date hereof, unless another time or times are specified in the
Distribution Agreement, in which case such agreement, covenant, acknowledgment,
representation or warranty shall be deemed to be confirmed by the Trust at such
specified time or times.

     Section 2.02 Purchase of Notes as Principal.

     (a) Subject in all respects to the terms and conditions of the
Distribution Agreement, the Trust hereby agrees to sell to the Purchasing Agent
and the Purchasing Agent hereby agrees to purchase the Notes having the terms
specified in the Pricing Supplement relating to such Notes.

D-1

 

     (b) In connection with any purchase of Notes from the Trust by the
Purchasing Agent as principal, the parties agrees that the items specified on
Schedule I of the Omnibus Instrument will be delivered as of the Settlement
Date.

     Section 2.03 Termination. Upon the termination of this Terms Agreement
pursuant to Section 13(b) of the Distribution Agreement the undersigned parties
hereby agree to that the expenses reasonably incurred prior to or in connection
with such termination will be borne by Principal Life and PFG.

     Section 2.04 Governing Law. This Terms Agreement shall be governed by and
construed in accordance with the laws of the State of New York without regard
to the principles of conflicts of laws thereof.

     Section 2.05 Notices. For purposes of Section 14 of the Distribution
Agreement, the Trust’s communications details are as set forth in Section E of
the Omnibus Instrument.

     Section 2.06 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to this Terms Agreement will enter into this Terms Agreement
by executing the Omnibus Instrument.

     By executing the Omnibus Instrument, each party hereto agrees that this
Terms Agreement will constitute a legal, valid and binding agreement by and
among such parties.

     All terms relating to the Trust or the Notes not otherwise included in
this Terms Agreement will be as specified in the Omnibus Instrument or Pricing
Supplement, as indicated herein.

     Section 2.07 Counterparts. This Terms Agreement, through the Omnibus
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

[Remainder of Page Intentionally Left Blank.]

D-2

 

SECTION E

COORDINATION AGREEMENT

     This COORDINATION AGREEMENT (this “Coordination Agreement”), dated as of
the date of the Pricing Supplement, is entered into by and among Principal Life
Insurance Company (“Principal Life”), Principal Financial Group, Inc. (“PFG”),
the Principal Life Income Fundings Trust specified in the Omnibus Instrument
(the “Trust”), Principal Financial Services, Inc. (“PFSI”), Bankers Trust
Company, N.A. and Citibank, N.A., as indenture trustee (the “Indenture
Trustee”).

W I T N E S S E T H

     WHEREAS, the Trust will enter into the Funding Agreement with Principal
Life dated as of the Original Issue Date specified in the Pricing Supplement;

     WHEREAS, PFG will issue a Guarantee to the Trust as of the Original Issue
Date specified in the Pricing Supplement, which will fully and unconditionally
guarantee the payment obligations of Principal Life under the Funding
Agreement;

     WHEREAS, the Purchasing Agent (as defined in the Distribution Agreement)
have agreed to sell the Notes in accordance with the Registration Statement;

     WHEREAS, the Trust intends to issue the Notes in accordance with the
Indenture, to collaterally assign to, and grant a security interest in, the
Funding Agreement and the Guarantee to and in favor of the Indenture Trustee in
accordance with the Indenture to secure payment of the Notes;

     WHEREAS, the Custodian will hold the Funding Agreement and the Guarantee
on behalf of the Indenture Trustee pursuant to the terms of the Custodial
Agreement; and

     WHEREAS, certain licensing arrangements between the Trust and PFSI will be
governed pursuant to the provisions of the License Agreement.

     NOW, THEREFORE, to give effect to the agreements and arrangements
established under the Terms Agreement included in the Omnibus Instrument, as
applicable, the Trust Agreement, the Indenture and the Notes, and in
consideration of the agreements and obligations set forth herein and for other
good and valuable consideration, the sufficiency of which are hereby
acknowledged, each party hereby agrees as follows:

ARTICLE 1

     Section 1.01 Delivery of the Funding Agreement and the Guarantee. The
Trust hereby authorizes the Custodian, on behalf of the Indenture Trustee, to
receive the Funding Agreement from Principal Life and the Guarantee from PFG
pursuant to the assignment of the Funding Agreement and Guarantee (the
“Assignment”), to be entered into on the Original Issue Date, included in the
closing instrument dated as of the Original Issue Date (the “Closing
Instrument”).

E-1

 

     Section 1.02 Issuance and Purchase of the Notes.

     (a) Delivery of the Funding Agreement and the Guarantee to the Custodian,
on behalf of the Indenture Trustee, pursuant to the Assignment or execution of
the cross receipt contained in the Closing Instrument shall be confirmation of
payment by the Trust for the Funding Agreement.

     (b) The Trust hereby directs the Indenture Trustee, upon receipt by the
Custodian, on behalf of the Indenture Trustee, of the Funding Agreement
pursuant to the Assignment and upon receipt by the Custodian, on behalf of the
Indenture Trustee, of the Guarantee, (i) to authenticate the certificates
representing the Notes (the “Notes Certificates”) in accordance with the
Indenture and (ii) to (A) deliver each relevant Notes Certificate to the
clearing system or systems identified in each such Notes Certificate, or to the
nominee of such clearing system, or the custodian thereof, for credit to such
accounts as the Purchasing Agent may direct, or (B) deliver each relevant Notes
Certificate to the purchasers thereof as identified by the Purchasing Agent.

ARTICLE 2

     Section 2.01 Directions Regarding Periodic Payments. As registered owner
of the Funding Agreement and the Guarantee as collateral securing payments on
the Notes, the Indenture Trustee will receive payments on the Funding Agreement
and the Guarantee on behalf of the Trust. The Trust hereby directs the
Indenture Trustee to use such funds to make payments on behalf of the Trust
pursuant to the Trust Agreement and the Indenture.

     Section 2.02 Maturity of the Funding Agreement. Upon the maturity of the
Funding Agreement and the return of funds thereunder, the Trust hereby directs
the Indenture Trustee to set aside from such funds an amount sufficient for the
repayment of the outstanding principal on the Notes and Trust Beneficial
Interest when due.

ARTICLE 3

     Section 3.01 Certificates. Principal Life hereby agrees to deliver an
Officer’s Certificate, a copy of which is attached hereto as Exhibit E, on a
quarterly basis to any rating agency currently rating the Program. The Trust
hereby agrees to deliver an Officer’s Certificate, a copy of which is attached
hereto as Exhibit F, on a quarterly basis to any rating agency currently rating
the Program.

     Section 3.02 Filings. Principal Life hereby covenants to file, or cause
to be filed, in a timely manner on behalf of the Trust all reports,
certifications or similar filings required under the Securities Exchange Act of
1934, as amended.

ARTICLE 4

     Section 4.01 No Additional Liability. Nothing in this Coordination
Agreement shall impose any liability or obligation on the part of any party to
this Coordination Agreement to make any payment or disbursement in addition to
any liability or obligation such party has under the Program Documents, except
to the extent that a party has actually received funds which it is obligated to
disburse pursuant to this Coordination Agreement.

E-2

 

     Section 4.02 No Conflict. This Coordination Agreement is intended to be
in furtherance of the agreements reflected in the documents related to the
Program Documents, and not in conflict. To the extent that a provision of this
Coordination Agreement conflicts with the provisions of one or more Program
Documents, the provisions of such Program Documents shall govern.

     Section 4.03 Governing Law. This Coordination Agreement shall be governed
by and construed in accordance with the laws of the State of New York without
regard to the principles of conflicts of laws thereof.

     Section 4.04 Severability. If any provision in this Coordination
Agreement shall be invalid, illegal or unenforceable, such provision shall be
deemed severable from the remaining provisions of this Coordination Agreement
and shall in no way affect the validity or enforceability of such other
provisions of this Coordination Agreement.

     Section 4.05 Severability. If any provision in this Coordination
Agreement shall be invalid, illegal or unenforceable, such provision shall be
deemed severable from the remaining provisions of this Coordination Agreement
and shall in no way affect the validity or enforceability of such other
provisions of this Coordination Agreement.

     Section 4.06 Notices. All demands, notices and communications under this
Coordination Agreement shall be in writing and shall be deemed to have been
duly given upon receipt at the addresses set forth below:

	 	 	 
	To the Trust:
	 	 
	 
	

	 	Principal Life Income Fundings
Trust (followed by the number set forth in the Omnibus Instrument)
	

	 	c/o U.S. Bank Trust National Association
	

	 	100 Wall Street, 16th Floor
	

	 	New York, New York 10005
	

	 	Attention: Corporate Trust Administration
	

	 	Telephone: (212) 361-2458
	

	 	Facsimile: (212) 809-5459
	 
	To the Indenture Trustee:
	 	 
	 
	

	 	Citibank, N.A.
	

	 	Citibank Agency & Trust
	

	 	388 Greenwich Street, 14th Floor
	

	 	New York, New York 10013
	

	 	Attention: Nancy Forte
	

	 	Telephone: (212) 816-5685
	

	 	Facsimile: (212) 816-5527

E-3

 

	 	 	 
	To Principal Life:

	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: General Counsel
	

	 	Telephone: (515) 247-5111
	

	 	Facsimile: (515) 248-3011
	 
	 	 	With a copy to:

	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: Jim Fifield
	

	 	Telephone: (515) 248-9196
	

	 	Facsimile: (515) 235-9353
	 
	To PFG:

	 
	

	 	Principal Financial Group, Inc.
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: General Counsel
	

	 	Telephone: (515) 247-5111
	

	 	Facsimile: (515) 248-3011
	 
	 	 	With a copy to:
	 	 
	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: Jim Fifield
	

	 	Telephone: (515) 248-9196
	

	 	Facsimile: (515) 235-9353
	 
	To Principal Financial
Services, Inc.:
	 	 
	 
	

	 	Principal Financial Services, Inc.
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: General Counsel
	

	 	Telephone: (515) 247-5111
	

	 	Facsimile: (515) 248-3011

E-4

 

	 	 	 
	 	 	With a copy to:
	 	 
	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: Jim Fifield
	

	 	Telephone: (515) 248-9196
	

	 	Facsimile: (515) 235-9353
	 
	To Bankers Trust Company, N.A:
	 	 
	 
	

	 	Bankers Trust Company, N.A.
	

	 	665 Locust Street
	

	 	Des Moines, Iowa 50309-3702
	

	 	Attention: Angela C. Brick
	

	 	Telephone: (515) 245-2820
	

	 	Facsimile: (515) 247-2101

or at such other address as shall be designated by any such party in a written
notice to the other parties.

ARTICLE 5

     Section 5.01 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to this Coordination Agreement will enter into this
Coordination Agreement by executing the Omnibus Instrument.

     By executing the Omnibus Instrument, each party hereto agrees that this
Coordination Agreement will constitute a legal, valid and binding agreement by
and among the Trust, Principal Life, PFG, PFSI, the Custodian and the Indenture
Trustee.

     All terms relating to the Trust or the Notes not otherwise included in
this Coordination Agreement will be as specified in the Omnibus Instrument or
Pricing Supplement, as indicated herein.

     Section 5.02 Acknowledgment. Principal Life hereby acknowledges Section
2.10 of the Indenture and Section 6.1 of the Custodial Agreement. The Trust
hereby acknowledges and agrees to the terms of the Custodial Agreement.

     Section 5.03 Counterparts. This Coordination Agreement, through the
Omnibus Instrument, may be executed in any number of counterparts, each of
which counterparts shall be deemed to be an original, and all of which
counterparts shall constitute but one and the same instrument.

     Section 5.04 Capitalized Terms. All capitalized terms used herein and not
otherwise defined in this Coordination Agreement will have the meanings set
forth in the Indenture.

[Remainder of Page Intentionally Left Blank.]

E-5

 

SECTION F

MISCELLANEOUS AND EXECUTION PAGES

     This Omnibus Instrument may be executed by each of the parties hereto in
any number of counterparts, and by each of the parties hereto on separate
counterparts, each of which counterparts, when so executed and delivered, shall
be deemed to be an original, but all such counterparts shall together
constitute but one and the same instrument.

     Each signatory, by its execution hereof, does hereby become a party to
each of the agreements or indenture identified for such party as of the date
specified in such agreements or indenture.

     IN WITNESS WHEREOF, the undersigned have executed this Omnibus Instrument
with respect to the Notes as of the date first written above.

	 	 	 	 	 
	 	PRINCIPAL LIFE INSURANCE COMPANY (in

executing below agrees and becomes a party

to (i) the Terms Agreement set forth in

Section D herein and (ii) the Coordination

Agreement set forth in Section E herein)

 	 
	 	By:  	/s/ JoEllen Watts
 	 
	 	 	Name:  	JoEllen Watts	 
	 	 	Title:  	Counsel 	 
	 
	 	PRINCIPAL FINANCIAL GROUP, INC. (in

executing below agrees and becomes a party

to (i) the Terms Agreement set forth in

Section D herein and (ii) the Coordination

Agreement set forth in Section E herein)

 	 
	 	By:  	/s/ JoEllen Watts	 
	 	 	Name:  	JoEllen Watts	 
	 	 	Title:  	Counsel 	 
	 
	 	PRINCIPAL FINANCIAL SERVICES, INC. (in

executing below agrees and becomes a party

to (i) the License Agreement set forth in

Section B herein and (ii) the Coordination

Agreement set forth in Section E herein)

 	 
	 	By:  	/s/ JoEllen Watts	 
	 	 	Name:  	JoEllen Watts	 
	 	 	Title:  	Counsel 	 
	 

[Execution Page 1 to the Omnibus Instrument]

 

 

	 	 	 	 	 
	 	THE PRINCIPAL LIFE INCOME FUNDINGS TRUST

DESIGNATED IN THIS OMNIBUS INSTRUMENT (in

executing below agrees and becomes a party

to (i) the License Agreement set forth in

Section B herein, (ii) the Indenture set

forth in Section C herein, (iii) the Terms

Agreement set forth in Section D herein and

(iv) the Coordination Agreement set forth in

Section E herein)

 	 
	 	By: U.S. Bank Trust National Association,
not in its
 individual capacity but solely in
its capacity as trustee
 of the Trust

 	 
	 	By:  	/s/
Thomas E. Tabor 	 
	 	 	Name:  	Thomas E. Tabor	 
	 	 	Title:  	Vice President 	 
	 
	 	U.S. BANK TRUST NATIONAL ASSOCIATION (in

executing below agrees and becomes a party

to the Trust Agreement set forth in Section

A herein), as Trustee

 	 
	 	By:  	/s/ Thomas E. Tabor
 	 
	 	 	Name:  	Thomas E. Tabor	 
	 	 	Title:  	Vice President 	 
	 
	 	GSS HOLDINGS II, INC. (in executing below

agrees and becomes a party to the Trust

Agreement set forth in Section A herein), as

Trust Beneficial Owner

 	 
	 	By:  	/s/ Andrew L. Stidd
 	 
	 	 	Name:  	Andrew L. Stidd 	 
	 	 	Title:  	President 	 
	 
	 	CITIBANK, N.A. (in executing below agrees

and becomes a party to (i) the Indenture set

forth in Section C herein, as Indenture

Trustee, Registrar, Transfer Agent, Paying

Agent and Calculation Agent and (ii) the

Coordination Agreement set forth in Section

E herein), as Indenture Trustee, Registrar,

Transfer Agent, Paying Agent and Calculation

Agent

 	 
	 	By:  	/s/ Nancy Forte
 	 
	 	 	Name:  	 Nancy Forte 	 
	 	 	Title:  	Assistant Vice President 	 
	 

[Execution Page 2 to the Omnibus Instrument]

 

 

	 	 	 	 	 
	 	BANKERS TRUST COMPANY, N.A. (in executing

below agrees and becomes a party to the

Coordination Agreement set forth in Section

E herein)

 	 
	 	By:  	/s/  Patty Ashbaugh 	 
	 	 	Name:  	Patty Ashbaugh 	 
	 	 	Title:  	Vice President 	 
	 
	 	LEHMAN BROTHERS INC. (in executing below
agrees and becomes a party to the Terms
Agreement set forth in Section D herein)

 	 
	 	By:  	/s/ Martin Goldberg	 
	 	 	Name:  	Martin Goldberg	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	BNP PARIBAS SECURITIES CORP. (in executing below
agrees and becomes a party to the Terms
Agreement set forth in Section D herein)

 	 
	 	By:  	/s/ Peter Masco	 
	 	 	Name:  	Peter Masco	 
	 	 	Title:  	Managing Director 	 

[Execution Page 3 to the Omnibus Instrument]

 

 

INDEX OF EXHIBITS AND SCHEDULES

TO THE

OMNIBUS INSTRUMENT

	 	 	 
	EXHIBITS	 	 
	 	 	 
	Exhibit A

	 	Standard Trust Terms – Incorporated herein by reference to Exhibit
4.6 to Principal Life Insurance Company and Principal Financial
Group, Inc.’s Registration Statement on Form S-3 (Registration
Nos. 333-110499 and 333-110499-01).
	 
	 	 
	Exhibit B

	 	Standard License Agreement Terms – Incorporated herein by
reference to Exhibit 99.1 to Principal Life Insurance Company’s
Current Report on Form 8-K, filed on March 29, 2004, to which this
Omnibus Instrument is filed as Exhibit 4.1.
	 
	 	 
	Exhibit C

	 	Standard Indenture Terms – Incorporated herein by reference to
Exhibit 4.1 to Principal Life Insurance Company and Principal
Financial Group, Inc.’s Registration Statement on Form S-3
(Registration Nos. 333-110499 and 333-110499-01).
	 
	 	 
	Exhibit D

	 	Pricing Supplement – Incorporated herein by reference to the
Pricing Supplement with respect to Principal Life Income Fundings
Trust 12, filed on June 6, 2005, with the Securities and Exchange
Commission pursuant to Rule 424(b)(2) under the Securities Act of
1933, as amended.
	 
	 	 
	Exhibit E

	 	Principal Life Insurance Company Officer’s Certificate
	 
	 	 
	Exhibit F

	 	Principal Life Income Fundings Trusts Trustee Officer’s Certificate
	 
	 	 
	Schedule I

	 	Terms Agreement Specifications

 

 

EXHIBIT E

Principal Life Insurance Company

Officer’s Certificate

     The undersigned, an officer of Principal Life Insurance Company, an Iowa
stock life insurance company (“Principal Life”), does hereby certify to
Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
Inc., in such capacity and on behalf of Principal Life, to the knowledge of the
undersigned and after reasonable inquiry, that:

	 	 	 
	1.

	 	each of the representations and warranties of Principal Life
contained in each Expense and Indemnity Agreement entered into in
connection with the Registration Statement (defined below), and each
Funding Agreement issued in connection with the Program (the
“Specified Agreements”) (other than any representation or warranty
expressly made as of a date prior to the date hereof) are true and
correct on and as of the date hereof, with the same effect as though
such representation or warranty had been made on and as of the date
hereof;
	 
	2.

	 	no default under any of the Specified Agreements and no event
or any condition which, with notice or lapse of time or both, would
become a default, has occurred and is continuing as of the date
hereof;
	 
	3.

	 	Principal Life has performed and complied with, respectively,
in all material respects, all of the agreements, covenants,
obligations and conditions applicable to Principal Life required by
the Specified Agreements to be performed or complied with by
Principal Life on or before the date hereof;
	 
	4.

	 	the Registration Statement filed on Form S-3 (File Nos.
333-110499 and 333-110499-01) (the “Registration Statement”) by
Principal Life and Principal Financial Group, Inc. has been declared
effective by the Securities and Exchange Commission (the
“Commission”) under the Securities Act of 1933, as amended (the
“Act”) and no stop order suspending the effectiveness of the
Registration Statement has been issued and no proceedings for that
purpose have been commenced by or are pending before or contemplated
by the Commission;
	 
	5.

	 	all filings, if any, required by Rule 424 and Rule 430A under
the Act have been made in a timely manner;
	 
	6.

	 	since
     , the Trusts organized in connection with the
program contemplated by the Registration Statement have issued the
following series of Notes:
	 
	

	 	[List each series of Notes.] [(collectively, the “Designated Notes”)]; and
	 
	7.

	 	the Funding Agreements issued in connection with the Designated
Notes have been executed and delivered by Principal Life in accordance
with the terms and conditions of the Program Documents.

E-1

 

          Capitalized terms used herein and not otherwise defined herein shall have the meanings set
forth in the Standard Indenture Terms attached as Exhibit 4.1 to the
Registration Statement.

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
the • day of •, 200•.

	 	 	 
	

	[Name], [in his/her] capacity as an
authorized officer of Principal Life
	 
	 	By:
	 
	 	 	

	

	 	Name:
	

	 	Title:

	 	 	 	 	 

E-2

 

EXHIBIT F

Principal Life Income Fundings Trusts

Trustee Officer’s Certificate

     U.S. Bank Trust National Association, not in its individual capacity but
solely in its capacity as trustee acting on behalf of each common law trust
organized under the laws of the State of New York (in such capacity, the
“Trustee,” and each such common law trust being referred to herein as, a
“Trust”) in connection with the program contemplated by Registration Statement
Nos. 333-110499 and 333-110499-01 filed on Form S-3 (the “Registration
Statement”) by Principal Life Insurance Company and Principal Financial Group,
Inc. with the Securities and Exchange Commission, does hereby certify to
Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
Inc., in such capacity and on behalf of each Trust, to the knowledge of the
Trustee, that:

	 	 	 
	1.

	 	each of the representations and warranties of each Trust
contained in the Notes issued in connection with the Program, each
Indenture entered into in connection with the Registration Statement
and the Expense and Indemnity Agreement concerning the Trusts (the
“Specified Agreements”) (other than any representation or warranty
expressly made as of a date prior to the date hereof) are true and
correct on and as of the date hereof, with the same effect as though
such representation or warranty had been made on and as of the date
hereof;
	 
	2.

	 	no default under any of the Specified Agreements and no event
or any condition which, with notice or lapse of time or both, would
become a default, has occurred and is continuing as of the date
hereof;
	 
	3.

	 	each Trust has performed and complied with, respectively, in
all material respects, all of the agreements, covenants, obligations
and conditions applicable to such Trust required by the Specified
Agreements to be performed or complied with by such Trust on or
before the date hereof;
	 
	4.

	 	the Notes issued in connection with the Program, have been
issued, in all material respects, in accordance with the terms and
conditions of the Program Documents; and
	 
	5.

	 	each Funding Agreement has been executed and delivered by the
related Trust in accordance with the terms and conditions of the
Program Documents.

     Capitalized terms used herein and not otherwise defined herein shall have
the meanings set forth in the Standard Indenture Terms attached as Exhibit 4.1
to the Registration Statement. In no event shall U.S. Bank Trust National
Association in its personal corporate capacity have any liability for any of
the certifications or statements contained in this Trustee Officer’s
Certificate, such liability being solely that of each Trust.

F-1

 

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
the • day of •, 200•.

	 	 	 
	

	 	U.S. Bank Trust National Association, not
in its capacity but solely in its capacity
as Trustee acting on behalf of each Trust
	 
	 	By:
	 
	 	 	

	

	 	Name:
	

	 	Title:

F-2

 

SCHEDULE I

Terms Agreement Specifications

In connection with Section 3(a)(iv) of the Distribution Agreement, the Program under which the
Notes are issued is rated Aa2 by Moody’s Investors Service, Inc. (“Moody’s”) and AA by Standard &
Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc. (“S&P”). Principal Life and
PFG expect that the Notes will be rated Aa2 by Moody’s. The Company’s financial strength rating is
Aa2 by Moody’s and AA by S&P.

In accordance with Section 2.02(b) of the Terms Agreement and in connection with the purchase of
Notes from the Trust by the Purchasing Agent(s) as principal, the following items will be delivered
on the Settlement Date:

	 	•  	Opinion of Sidley Austin Brown & Wood LLP regarding the enforceability of the
Guarantee and the Notes pursuant to Section 8(f) of the Distribution Agreement.
	 
	 	•  	Certificates of Principal Life Insurance Company and Principal Financial Group
Inc. pursuant to Section 8(a) of the Distribution Agreement.
	 
	 	•  	Comfort Letter of Ernst & Young LLP pursuant to Section 8(g) of the Distribution
Agreement dated May 4, 2005.
	 
	 	•  	Reliance Letter of internal counsel for the Company allowing BNP Paribas
Securities Corp. to rely on the opinion of internal counsel to the Company dated
March 17, 2004 regarding the enforceability of the Funding Agreement pursuant to
Section 8(f) of the Distribution Agreement.
	 
	 	•  	Reliance Letter of Sidley Austin Brown & Wood LLP regarding the Program Letters,
including the Priority Letter, Securities Letter, New York Law Letter, Delaware Law
Letter, Tax Letter, Insurance Letter and Negative Assurance Letter dated May 10, 2005, and Insurance
Memorandum related to the Program.
	 
	 	•  	Reliance Letter of Pillsbury Winthrop Shaw Pittman LLP allowing BNP Paribas
Securities Corp. to rely on the opinion of Pillsbury Winthrop LLP dated March 9, 2005
to the Agents named in the Distribution Agreement pursuant to Section 8(d) of the
Distribution Agreement.

      All capitalized terms used herein and not otherwise defined herein will have the meanings set
forth in the Distribution Agreement.<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED
                                          UNDER 17 C.F.R. SECTIONS 200.80(b)(4),
                                                                   AND 240.24b-2

--------------------------------------------------------------------------------

                                    AGREEMENT

--------------------------------------------------------------------------------

                                     BETWEEN

                                  UTi SPAIN SL.

                                       AND

                         Mr. Carlos Luis Escario Pascual
                       Mr. Mariano Arturo Escario Pascual
                         Mr. Jose Maria Escario Pascual
                        Mr Juan Ignacio Escario Pascual,

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

<PAGE>

                                    AGREEMENT

In Madrid, on January 25, 2002.

                                    GATHERED

ON ONE PART,

Mr. Carlos Luis Escario Pascual, of legal age, Economist, married in joint and
several marriage regime, with domicile at [...***...], and tax identification
number [...***...], and his wife, Mrs. Natalia de la Vega Fernandez-Lascoiti, of
legal age, with same domicile, and tax identification number [...***...];

ON THE OTHER PART,

Mr. Mariano Arturo Escario Pascual, of legal age, Economist, single, with
domicile at [...***...], and tax identification number [...***...];

ON THE OTHER PART,

Mr. Jose Maria Escario Pascual, of legal age, Director, married in joint and
several economic marriage regime, with domicile at [...***...], and tax
identification number [...***...], and his wife Mrs. Fabiola de la Vega
Fernandez-Lascoiti, of legal age, with same domicile, and tax identification
number [...***...];

ON THE OTHER PART,

Mr. Juan Ignacio Escario Pascual, of legal age, Economist, single, with domicile
at [...***...], and tax identification number [...***...];

AND ON THE OTHER PART,

Mr. Pedro Antonio Rueda Gonzalez, of legal age, lawyer, married, with
professional domicile at [...***...], and tax identification number [...***...];

                                    INTERVENE

(1)   Mr. Pedro Antonio Rueda Gonzalez, in the name and behalf of UTi Spain,
      S.L., a company duly incorporated and existing under the laws of Spain, by
      virtue of the public deed granted before the Public Notary of Madrid Mr.
      Rodrigo Tena Arregui, on January 2, 2002 with number 3 of his public
      record, with Tax Identity Code [...***...], with registered office at
      Paseo de la Castellana 15, 3 degrees Drcha., 28046 Madrid, and not yet
      registered at the Commercial Registry of Madrid (hereinafter referred to
      as the "PURCHASER").

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       2
<PAGE>

      He acts as legal representative of the Sole Administrator of the
      Purchaser, post for which was appointed upon incorporation of the Company.

(2)   Mr. Carlos Luis Escario Pascual, Mr. Mariano Arturo Escario Pascual, Mr.
      Jose Maria Escario Pascual and Mr. Juan Ignacio Escario Pascual, in their
      own name and behalf.

      All the individuals referred to in section (2) shall be hereinafter
      jointly referred to as the "SELLERS" and each of them a "SELLER".

(3)   Mr. Pedro Antonio Rueda Gonzalez, acting also in the name and on behalf of
      UTi Worldwide Inc, a company duly incorporated under the laws of British
      Virgin Islands, duly incorporated and in existence, with corporate
      domicile at 9 Columbus Centre, Pelican Drive, Road Town Tortola, British
      Virgin Islands (hereinafter, "UTI WORLDWIDE"), registered with number
      141257 of the Commercial Registry of British Virgin Islands.

      He acts by virtue of the powers of attorney granted in Rancho Dominguez,
      United States of America, on December 12, 2001 before Mrs. Nancy Downs,
      Public Notary, duly apostilled.

The Purchaser and the Sellers will be hereinafter jointly referred to as the
"PARTIES" and each of them as a "PARTY".

                                     WHEREAS

I.    The Purchaser belongs to a group of companies whose holding company is UTi
      Worldwide. This group to be referred hereinafter as the "UTI GROUP". UTi
      Group has a wide experience in the field of transportation where GRUPO SLI
      & UNION, S.L. and its subsidiaries carry out their business, with which
      group the UTi Group has been maintaining a close commercial relationship
      during the two last decades.

II.   GRUPO SLI & UNION, S.L. (hereinafter the "COMPANY") is a company duly
      incorporated and existing under the laws of Spain by virtue of Deed of
      Incorporation granted before the Public Notary of Madrid, Mr. Luis Sanz
      Rodero, on July 29, 1998, with number 3,718 of his public record; it is
      registered with the Commercial Registry of Madrid, at Volume 13548, Sheet
      144, Section 8, Page M-220315; its Tax Identification Number (C.I.F) is
      [...***...] and its registered office is at Oficina 136, Centro de Carga
      Aerea de Barajas, Madrid.

III.  The current share capital of the Company amounts to Euros 2,241,775.15
      divided into 37,300 shares ("participaciones sociales"), numbers 1 to
      37,300, both inclusive, of Euro 60.10 nominal value each, fully subscribed
      and paid up.

      The Sellers are the absolute legal owners of the shares representing one
      hundred per cent (100%) of the share capital of the Company (hereinafter
      the "SHARES"), in the following way and by virtue of the titles explained
      below, as shown in the Shareholders' Register Book of the Company:

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       3
<PAGE>

      (i)   Mr. Carlos Luis Escario Pascual is the owner of [...***...] shares,
            numbers [...***...] to [...***...], both inclusive, by virtue of:

            *     shares numbers [...***...] to [...***...], both inclusive,
                  subscription and disbursement in the public deed of
                  incorporation, and

            *     shares numbers [...***...] to [...***...], both inclusive,
                  purchased from Mr. [...***...] effected by virtue of an
                  agreement intervened by the Stock Broker Mr. Fernando Molina
                  Stranz on August 3, 2000.

      (ii)  Mr. Mariano Arturo Escario Pascual is the owner of [...***...]
            shares, numbers [...***...] to [...***...], both inclusive, by
            virtue of subscription and disbursement in the public deed of
            incorporation.

      (iii) Mr. Jose Maria Escario Pascual is the owner of [...***...] shares,
            numbers [...***...] to [...***...], both inclusive, by virtue of:

            *     shares numbers [...***...] to [...***...], subscription and
                  disbursement in the public deed of incorporation, and

            *     shares numbers [...***...] to [...***...], both inclusive,
                  purchased from Mr. Juan Ignacio Escario Pascual effected by
                  virtue of an agreement intervened by the Stock Broker Mr.
                  Fernando Molina Stranz on August 3, 2000.

      (iv)  Mr. Juan Ignacio Escario Pascual is the owner of [...***...] shares,
            numbers [...***...] to [...***...], both inclusive, by virtue of
            subscription and disbursement in the public deed of incorporation.

      The Shares are free of any liens, charges, encumbrances, third party
      rights or restrictions on their transferability (save for the
      first-refusal-rights set out in Articles 10, 11 and 12 of the Company's
      By-laws as registered with the Commercial Register) and are equal in
      rights.

IV.   The Company is the absolute legal owner, directly or indirectly, of the
      following shares:

IV.1  [...***...] shares of the company SERVICIOS LOGISTICOS INTEGRADOS SLI,
      S.A., numbers [...***...] to [...***...], both inclusive, representing
      [...***...] per cent ([...***...]%) of the shares of its share capital, by
      virtue of the in-kind contribution of said shares to the share capital of
      the Company effected upon its incorporation.

      SERVICIOS LOGISTICOS INTEGRADOS SLI, S.A. was incorporated under the name
      of SOCIEDAD LIMITADA DE SERVICIOS LOGISTICOS INTEGRADOS TACISA, S.L. by
      virtue of Deed of Incorporation granted on October 4, 1991 before the
      Public Notary of Madrid, Mr. Emilio Villalobos Bernal, with number 1,377
      of his public record; its By-laws were adapted to the currently in force
      Joint Stock Companies' Act by virtue of deed granted on January 27, 1993,
      before the Notary of Madrid Mr. Valerio

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       4
<PAGE>

      Pedro de Madrid y Pala with number 1,959 of his public record; its
      registered office is at Madrid, Paseo de las Delicias 65 and it is
      registered at the Madrid Commercial Registry, Volume 1,718, Page 14,
      Section 8, Sheet M-31,110; its Tax Identification Code (C.I.F.) is
      [...***...].

      Its current share capital amounts to [...***...] Euros, divided into
      [...***...] shares, numbers 1 to [...***...], both inclusive, of
      [...***...] Euros par value each, fully subscribed and paid up. All of its
      shares are free of any liens, charges, encumbrances, third party rights or
      restrictions on their transferability (save for the restrictions to their
      free transferability set out in this Company's By-laws as registered with
      the Commercial Register).

      The remaining shares of SERVICIOS LOGISTICOS INTEGRADOS SLI, S.A., i.e.
      shares number [...***...] to [...***...], both inclusive, are held by:

      (i)   Shares number [...***...] to [...***...], both inclusive, Mr. Jose
            Maria Escario Pascual, by virtue of the sale and purchase public
            deed granted on January 23, 2002 before the Public Notary of Madrid,
            Mr. Valerio Perez de Madrid y Pala with number 276 of his public
            record.

      (ii)  Shares number [...***...] to [...***...], both inclusive, Mr. Carlos
            Luis Escario Pascual, by virtue of the sale and purchase public deed
            granted on January 23, 2002 before the Public Notary of Madrid, Mr.
            Valerio Perez de Madrid y Pala with number 276 of his public record.

IV.2  5,904 shares of the company UNION DE SERVICIOS LOGISTICOS INTEGRADOS,
      S.A., numbers 1 to 5,904, both inclusive, representing one hundred per
      cent (100%) of shares of its share capital, by virtue of:

      (i)   Shares numbers 1 to 5,000, both inclusive, by the in-kind
            contribution of said shares to the share capital of the Company
            effected upon its incorporation.

      (ii)  Shares numbers 5,001 to 5,904, both inclusive, by virtue of Capital
            Increase Deed granted before the Public Notary of Madrid, Mr.
            Isidoro Lora Tamayo Rodriguez, dated on December 20, 1999, with
            number 2,266 of his public record.

      UNION DE SERVICIOS LOGISTICOS INTEGRADOS, S.A. was incorporated by virtue
      of Deed of Incorporation granted on July 12, 1993 before Public Notary of
      Madrid, Mr. Valerio Perez de Madrid y Pala with number 3,025 of his public
      record; its registered office is at Madrid, Paseo de las Delicias 65 and
      it is registered at the Madrid Commercial Registry, Volume 6,781, Page 81,
      Section 8, Sheet M-110,424; its Tax Identification Code (C.I.F.) is
      [...***...].

      Its current share capital amounts to 354,837.54 Euros, divided into 5,904
      shares, numbers 1 to 5,904, both inclusive, of 60.01 Euros par value each,
      fully subscribed and paid up. All of its shares are free of any liens,
      charges, encumbrances, third party rights or restrictions on their
      transferability (save for the restrictions to their free transferability
      set out in this Company's By-laws as registered with the Commercial
      Register).

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       5
<PAGE>

IV.3  50,000 shares of the company WEAR LINK, S.L., numbers 1 to 50,000, both
      inclusive, representing one hundred per cent (100%) of shares of its share
      capital, by virtue of the in-kind contribution of said shares to the share
      capital of the Company effected upon its incorporation.

      WEAR LINK, S.L. was incorporated by virtue of the deed granted on July 1,
      1994 before the Public Notary of Madrid, Mr. Valerio Perez de Madrid y
      Pala, with number 3,323 of his public record; its By-laws were adapted to
      the currently in force Limited Liability Companies Act by virtue of Deed
      granted on May 26, 1998 before the Public Notary of Madrid, Mr. Valerio
      Perez de Madrid y Pala, with number 2,128 of his public record; its
      registered office is at Madrid, Paseo de las Delicias 65 and it is
      registered at the Madrid Commercial Registry, Volume 179, Page 135,
      Section 8, Sheet Gu-1068; its Tax Identification Code (C.I.F.) is
      [...***...].

      Its current share capital amounts to 300,506.05 Euros, divided into 50,000
      shares, numbers 1 to 50,000, both inclusive, of 6.01 Euros par value each,
      fully subscribed and paid up. All of its shares are free of any liens,
      charges, encumbrances, third party rights or restrictions on their
      transferability (save for the restrictions to their free transferability
      set out in this Company's By-laws as registered with the Commercial
      Register).

IV.4  1,500 shares of the company TECNICOS ASESORES DE SEGUROS BROKERS
      CORREDURIA DE SEGUROS, S.A., numbers 1 to 1,500, both inclusive,
      representing one hundred per cent (100%) of shares of its share capital,
      by virtue of the in-kind contribution of said shares to the share capital
      of the Company effected upon its incorporation.

      TECNICOS ASESORES DE SEGUROS BROKERS CORREDURIA DE SEGUROS, S.A. was
      incorporated by virtue of by virtue of Deed of Incorporation, granted on
      October 21, 1987 before the Public Notary of Madrid, Mr. Rafael Ruiz
      Jarabo Baquero, with number 3,323 of his public record; its By-laws were
      adapted to the currently in force Joint Stock Companies' Act by virtue of
      Deed granted on May 22, 1992 before the Public Notary of Madrid Mr. Jose
      Villaescusa Sanz, with number 4,558 of his public record; its registered
      office is at Madrid, Paseo de las Delicias 65 and it is registered at the
      Madrid Commercial Registry, Volume 3,175, Page 82, Section 8, Sheet
      M-54,200; its Tax Identification Code (C.I.F.) is [...***...].

      Its current share capital amounts to 90,151.82 Euros, divided into 1,500
      shares, numbers 1 to 1,500, both inclusive, of 60.10 Euros par value each,
      fully subscribed and paid up. All of its shares are free of any liens,
      charges, encumbrances, third party rights or restrictions on their
      transferability (save for the restrictions to their free transferability
      set out in this Company's By-laws as registered with the Commercial
      Register).

IV.5  3,006 shares of the company VALUE 4 LOGISTICS, S.L., numbers 1 to 3,006,
      both inclusive, representing one hundred per cent (100%) of shares of its
      share capital, by virtue of subscription and disbursement of the same
      effected in the public deed of incorporation.

      VALUE 4 LOGISTICS, S.L. was incorporated by virtue of the public deed
      granted on

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       6
<PAGE>

      September 15, 2000 before the Public Notary of Madrid, Mr Valerio Perez de
      Madrid y Pala, with number 4,441 of his public record; its registered
      office is at Madrid, Paseo de las Delicias 65 and it is registered at the
      Madrid Commercial Registry, Volume 15,800, Page 1, Section 8, Sheet
      M-266,709; its Tax Identification Code (C.I.F.) is [...***...].

      Its current share capital amounts to THREE THOUSAND SIX (3,006.00) Euros,
      divided into 3,006 shares, numbers 1 to 3,006, both inclusive, of 1 Euro
      par value each, fully subscribed and paid up. All of its shares are free
      of any liens, charges, encumbrances, third party rights or restrictions on
      their transferability (save for the restrictions to their free
      transferability set out in this Company's By-laws as registered with the
      Commercial Register).

IV.6  3,006 shares of the company SLI INTERNALIZACION DE SERVICIOS, S.L.,
      numbers 1 to 3,006, both inclusive, representing one hundred per cent
      (100%) of shares of its share capital, by virtue of subscription and
      disbursement of the same in the public deed of incorporation.

      SLI INTERNALIZACION DE SERVICIOS, SL. was incorporated by virtue of deed
      of incorporation granted on August 1, 2000 before the Public Notary of
      Madrid, Mr Angel Sanz Iglesias, with number 3,839 for the public record of
      the Public Notary of Madrid Mr. Valerio Perez de Madrid y Pala; its
      registered office is at Madrid, Paseo de las Delicias 65 and it is
      registered at the Madrid Commercial Registry, Volume 15,645, Page 188,
      Section 8, Sheet M-263,499; its Tax Identification Code (C.I.F.) is
      [...***...].

      Its current share capital amounts to THREE THOUSAND SIX (3,006.00) Euro,
      divided into 3,006 shares, numbers 1 to 3,006, both inclusive, of 1 Euro
      par value each, fully subscribed and paid up. All of its shares are free
      of any liens, charges, encumbrances, third party rights or restrictions on
      their transferability (save for the restrictions to their free
      transferability set out in this Company's By-laws as registered with the
      Commercial Register).

IV.7  3,006 shares of the company SLI MANTENIMIENTO INTEGRAL, S.L., numbers 1 to
      3,006, both inclusive, representing one hundred per cent (100%) of shares
      of its share capital, by virtue of the subscription and disbursement of
      the same in the public deed of incorporation.

      SLI MANTENIMIENTO INTEGRAL, S.L. was incorporated by virtue of the deed of
      incorporation granted on August 1, 2000 before the Public Notary of
      Madrid, Mr Angel Sanz Iglesias, with number 3,846 for the public record of
      the Public Notary of Madrid, Mr. Valerio Perez de Madrid y Pala; its
      registered office is at Madrid, Paseo de las Delicias 65 and it is
      registered at the Commercial Registry of Madrid at Volume 15,645, Page
      196, Section 8, Sheet M-263500; its Tax Identification Code (C.I.F.) is
      [...***...].

      Its current share capital amounts to THREE THOUSAND SIX (3,006.00) Euro,
      divided into 3,006 shares, numbers 1 to 3,006, both inclusive, of 1 Euro
      par value each, fully subscribed and paid up. All of its shares are free
      of any liens, charges, encumbrances, third party rights or restrictions on
      their transferability (save for the restrictions to their free
      transferability set out in this Company's By-laws as registered with the
      Commercial Register).

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       7
<PAGE>

IV.8  3,006 shares of the company PLATAFORMA LOGISTICA DE ALOVERA, S.L., numbers
      1 to 3,006, both inclusive, representing one hundred per cent (100%) of
      shares of its share capital, by virtue of the subscription and
      disbursement of the same effected in the public deed of incorporation.

      PLATAFORMA LOGISTICA DE ALOVERA, S.L. was incorporated by virtue of the
      deed of incorporation granted on June 23, 2000 before the Public Notary of
      Madrid, Mr Jose Manuel de la Cruz Lagunero, with number 3,846 of his
      public record; its registered office is at Madrid, Paseo de las Delicias
      65 and it is registered at the Madrid Commercial Registry, Volume 15,596,
      Page 203, Section 8, Sheet M-262,579; its Tax Identification Code (C.I.F.)
      is [...***...].

      Its current share capital amounts to THREE THOUSAND SIX (3,006.00) Euro,
      divided into 3,006 shares, numbers 1 to 3,006, both inclusive, of 1 Euro
      par value each, fully subscribed and paid up. All of its shares are free
      of any liens, charges, encumbrances, third party rights or restrictions on
      their transferability (save for the restrictions to their free
      transferability set out in this Company's By-laws as registered with the
      Commercial Register).

IV.9  5,000 shares of the company GSLI-GRUPO DE SERVICOS LOGISTICOS INTEGRADOS
      LDA., numbers 1 to 5,000 shares, both inclusive, representing one hundred
      per cent (100 %) of shares of its share capital, by virtue of:

      *     shares 1 to 4,900, both inclusive, subscription and disbursement of
            the same in the public deed of incorporation; and

      *     shares 4,901 to 5,000, both inclusive, purchase from Mr. Juan
            Ignacio Escario Pascual by virtue of the deed granted before the
            Public Notary of Madrid, Mr. Valerio Perez de la Madrid y Pala on
            January 23, 2002 with number 278 of his public record.

      GSLI-GRUPO DE SERVICOS LOGISTICOS INTEGRADOS LDA. was incorporated by
      virtue of the public deed granted in Lisbon, before the Public Notary of
      Lisbon, Mrs.Maria do Carmo Antunes dos Santos, granted on October 1, 1999;
      its registered office is at Zona Industrial do Cabo, freguesia de
      Castanheira do Ribatejo, concelho de Vila Franca de Xira (Portugal) and it
      is registered at the Commercial Registry of Vila Franca de Xira, number
      04629; its Tax Identification Code (C.I.F.) is [...***...].

      Its current share capital amounts to FIVE THOUSAND (5,000.00) Euros,
      divided into 5,000 shares, numbers 1 to 5,000, both inclusive, of 1 Euro
      par value each, fully subscribed and paid up. All of its shares are free
      of any liens, charges, encumbrances, third party rights or restrictions on
      their transferability.

IV.10 Indirectly, through SERVICIOS LOGISTICOS INTEGRADOS SLI, S.A., 3,000
      shares of the company SLI TACISA, INC., representing one hundred per cent
      (100 %) of shares of its share capital,. Said shares are of the full
      property of SERVICIOS LOGISTICOS INTEGRADOS SLI, S.A.

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       8
<PAGE>

      SLI TACISA, INC. was incorporated under the name TECNICOS ASESORES DE
      COMERCIO INTERNACIONAL, INC by virtue of the deed granted on May 19, 1988
      by Commisioner for oaths of the State of New York (U.S.A); its registered
      office is at Johnson Road 1, North Lawrence, NY 11559 (U.S.A.) and it is
      registered at State Department of New York under number B 642791-3; its
      Employer Identification Number is [...***...].

      Its current share capital amounts to US$ 3,000, divided into 3,000 shares,
      both inclusive, of US$ 1.00 par value each, fully subscribed and paid up.
      All of its shares are free of any liens, charges, encumbrances, third
      party rights or restrictions on their transferability.

      The companies described under sections (IV.1) through (IV.10), both
      inclusive, are herein jointly referred to as "THE SUBSIDIARIES".

      The Company and the Subsidiaries are herein jointly referred to as the
      "SLI GROUP".

V.    The Sellers have excluded from SLI Group the assets, employees and
      business directly and exclusively related to the road freight business
      ("transporte terrestre") formerly carried out by SLI Group (hereinafter
      the "EXCLUDED BUSINESS"), by means of the sale and purchase agreement and
      transfer of the same to [...***...] effected by virtue of the public deed
      granted on January 25, 2002 before the Public Notary of Madrid Mr. Rafael
      Bonardell Lenzano, attached in ANNEX (V) hereto, and following the
      criteria for the segregation of the Excluded Business also attached in
      that same Annex. [...***...] shall hereinafter be referred to as the
      "OWNER OF THE EXCLUDED BUSINESS".

VI.   In the context of the existing agreements for a strategic alliance between
      the UTi Group and SLI Group, the Parties are interested in allowing SLI
      Group access to UTi Group's global world network and simultaneously
      granting to UTi Group its own business structure in Spain and Portugal. In
      this regard, the Purchaser is interested in acquiring, and the Sellers are
      interested in transferring the Shares and, indirectly, the stake held by
      the Company in the Subsidiaries, pursuant to the terms and conditions set
      forth herein, for the purpose of acquiring (and transferring,
      respectively) the total business currently carried out by SLI Group
      ("ACQUIRED BUSINESS"), once the Excluded Business has been taken out of
      SLI Group. Moreover, the present Agreement grants to the Sellers the
      possibility of receiving part of the purchase price for the Shares in UTi
      Worldwide's unregistered ordinary shares.

VII.  The Sellers are interested in the employees of SLI Group having access to
      standard professional and other employees promotion policies of UTi Group
      as a consequence of the consummation of this transaction and in the
      Purchaser not planning to carry out any employee redundancy plan within
      SLI Group as a result of this transaction.

VIII. The Sellers, in their position as owners of shares representing 100% of
      the Company's share capital, hereby express their consent to the transfer
      of the Shares, in compliance with the procedure established by the
      Company's By-laws for the transfer of the shares of the Company.

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       9
<PAGE>

IX.   Prior to the execution of this Agreement, the Purchaser has carried out a
      due diligence review on legal, economic/financial, tax, premises,
      information systems, human resources and contractual/commercial main
      aspects relating to the Company and its Spanish Subsidiaries based on the
      information provided by the Sellers in response to a checklist of
      documentation requested by the Purchaser from the Sellers, on the visit to
      the main premises of the Company and its Subsidiaries and on the
      interviews and conversations with Mr. Carlos Luis Escario Pascual and Mr.
      Jose Maria Escario Pascual , with the purpose of obtaining information on
      the status and situation of the Company and said Subsidiaries, as well as
      their respective businesses (hereinafter, the "DUE DILIGENCE"); after
      taking such information into account, the Purchaser is interested in
      continuing with this transaction in the terms and conditions agreed below.
      However, following the practice in this kind of transactions, the Sellers
      acknowledge that any due diligence review by a third party cannot be
      exhaustive and have, therefore, agreed to provide the Purchaser with the
      representations and warranties appearing below.

X.    The Parties hereby state that they have obtained all the authorisations
      and approvals required for the execution and delivery of this Agreement
      and acknowledge each other's full legal capacity for such execution and
      delivery.

Now, therefore, the Parties hereby agree to enter into this agreement (the
"AGREEMENT") pursuant to the following:

                                     CLAUSES

1.    PURPOSE.

1.1   SALE AND PURCHASE.

      The Sellers sell and transfer to the Purchaser, and the Purchaser
      purchases and acquires, the Shares with all rights attached thereto and
      free of any liens, charges, encumbrances, third party rights or
      restrictions on their transferability, other than those established in the
      By-Laws of the Company registered with the Commercial Register.

1.2   TRANSFER OF THE SHARES.

      The Sellers hereby deliver possession of the Shares and transfer title
      thereto to the Purchaser, who receives them and acquires full ownership
      over the Shares, by means of the execution of this Agreement and its
      subsequent recording at the Shareholders' Register Book of the Company.

      The Sellers hereby deliver to the Purchaser the following:

      1.2.1 A certificate signed by the Company's Secretary of the Board,
            stating that the transfer to the Purchaser of the Shares and,
            indirectly, of the shares held by the Company in the Subsidiaries,
            has complied with all formalities and requirements established by
            the Company's and each and all of the Subsidiaries' By-Laws
            regarding the restrictions to the transferability of the Shares.

      1.2.2 The duly signed resignations of all the members of the
            Administration Bodies of the Company and of the Subsidiaries and the
            Sellers (and any person related to

                                       10
<PAGE>

            any of them) from their respective positions, stating that their
            relationships with said companies, whether of an employment,
            consultant, agency or other nature are thereby extinguished and that
            full settlement has been reached and that they will not make any
            claim against the Company and the Subsidiaries for any reason,
            including, if appropriate, the loss of their work post, unilateral
            termination of the existing relationship or unfair dismissal, save
            for the exceptions mentioned in the following paragraphs (ii) and
            (iii).

            Notwithstanding the above, it its agreed between the Parties that:

            (i)   Mr. Carlos Luis Escario Pascual and Mr. Jose Maria Escario
                  Pascual, directly or through a wholly owned company, will
                  perform their offices as members of the Board of the Company ,
                  as representative of the sole administrator of the
                  Subsidiaries and as first executive managers of SLI Group, as
                  per Clause 6 below;

            (ii)  Mr. Mariano Arturo Escario Pascual will continue to render his
                  services as Air Freight and Ocean Freight Manager for Madrid
                  offices of SLI Group according to the terms and conditions set
                  forth in ANNEX (1.2.2.ii) attached hereto; and,

            (iii) Mr. Miguel Miguez Villaverde will continue to perform his
                  duties as Head of the Logistics Business Unit of SLI Group
                  according to the terms and conditions set forth in ANNEX
                  (1.2.2.iii) attached hereto.

      1.2.3 Property title to the Shares (titulos de propiedad de las
            participaciones). Such titles shall be returned to the Sellers once
            the Public Notary has intervened such titles in order to reflect the
            sale and purchase carried out herein.

      1.2.4 Authorised copy (copia autorizada) of the sale and purchase public
            deed by virtue of which the Excluded Business has been sold to the
            Owner of the Excluded Business.

2.    PRICE.

2.1   TOTAL PURCHASE PRICE.

      The Parties agree that the total consideration for the purchase of the
      Shares (the "TOTAL PURCHASE PRICE"), including the compensation for the
      obligation not to compete established in Clause 6 below, shall be the
      amount resulting from adding up the five following different tranches:

      (i)   Initial consideration (hereinafter "THE INITIAL CONSIDERATION").

            The Initial Consideration shall be the amount resulting from adding
            up:

            a)    The net worth of SLI Group (hereinafter the "NET WORTH OF SLI
                  GROUP") as of the date hereof (hereinafter the "COMPLETION
                  DATE"), calculated and determined to such effect in accordance
                  with the accounting rules and adjustments criteria set forth
                  in ANNEX (2.1.i.a) attached hereto, and

                                       11
<PAGE>

            b)    [...***...] of [...***...] the Earnings After Taxes of SLI
                  Group (as defined below) during the year starting on January
                  1st, 2001 and ending on December 31st, 2001, calculated and
                  determined in accordance with the accounting rules and
                  adjustments criteria set forth in ANNEX (2.1.i.b); and

      (ii)  Second tranche (hereinafter the "SECOND TRANCHE").

            The Second Tranche shall be equal to [...***...] of [...***...] the
            Earnings After Taxes of SLI Group obtained during the period
            starting on January 1, 2002 and ending on January 31, 2003,
            calculated and determined in accordance with the accounting rules
            and adjustments criteria set forth in ANNEX (2.1.ii).

      (iii) Third tranche (hereinafter the "THIRD TRANCHE"):

            The Third Tranche shall be equal to [...***...] of [...***...] the
            Earnings After Taxes of SLI Group obtained during the year starting
            on February 1, 2003 and ending on January 31, 2004, calculated and
            determined in accordance with the accounting rules and adjustments
            criteria set forth in Annex (2.1.ii).

      (iv)  Fourth tranche (hereinafter the "FOURTH TRANCHE"):

            The Fourth Tranche shall be equal to [...***...] of [...***...] the
            Earnings After Taxes of SLI Group obtained during the year starting
            on February 1, 2004 and ending on January 31, 2005, calculated and
            determined the accounting rules and adjustments criteria set forth
            in Annex (2.1.ii).

      (v)   Fifth tranche (hereinafter the "FIFTH TRANCHE"):

            The Fifth Tranche shall be equal to [...***...] of [...***...] the
            Earnings After Taxes of SLI Group obtained during the year starting
            on February 1, 2005 and ending on January 31, 2006, calculated and
            determined in accordance with the accounting rules and adjustments
            criteria set forth in Annex (2.1.ii).

      For the purposes of this Agreement, the Initial Consideration, the Second,
      Third, Fourth and Fifth Tranches shall be hereinafter jointly referred to
      as the "TRANCHES" and each of them, separately as a "TRANCHE". Each period
      taken into account for the calculations of each of the above-mentioned
      Tranches (including the calendar year starting on January 1 and ending on
      December 31, 2001) shall be hereinafter referred to as an "ACCOUNTING
      YEAR". Likewise, for the purposes of this Agreement, the "EARNINGS AFTER
      TAXES OF SLI GROUP" during each of the Accounting Years shall be defined
      as the consolidated earnings after taxes of SLI Group for that Accounting
      Year as determined and calculated pursuant to the present Agreement and
      its relevant Annex.

      For the above-mentioned purposes, the Purchaser hereby undertakes, as soon
      as possible after Completion Date, to adopt the necessary corporate
      resolutions for the purposes of changing the fiscal year of the Company
      and of its Subsidiaries to the period comprised between February 1 and
      January 31 in the succeeding year, so that the Accounting Years coincide
      with the Company's and the Subsidiaries' fiscal years.

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       12
<PAGE>

2.2.  RULES FOR THE DETERMINATION OF THE TOTAL PURCHASE PRICE.

      In respect of the calculation of the Total Purchase Price, the Parties
      hereto agree as follows:

      (i)   The Net Worth of SLI Group as of Completion Date and the Earnings
            After Taxes of SLI Group for the Accounting Year ending on December
            31, 2001 will be determined by the auditors of the Company, which
            are GESEM AUDITORES, S.A.

            The Earnings After Taxes of SLI Group for the remaining Accounting
            Years will be determined by the auditors of the Company, which will
            be any international auditing firm as appointed, from time to time,
            by the Company.

            The auditors referred to in the two preceding paragraphs shall be
            hereinafter referred to as the "AUDITORS".

            As soon as the Auditors calculate the Net Worth of SLI Group and the
            Earnings After Taxes of SLI Group they shall notify their
            calculation to both Parties simultaneously. Should neither Party
            notify any disagreement with said calculation within the period
            established in section (ii) below of the present sub-Clause 2.2, the
            same shall become definitive and binding for both Parties and shall
            not be subject to any claims of any nature whatsoever by the
            Parties.

            The fees of the Auditors incurred as a consequence of the
            calculation provided for in the present section 1 will be borne by
            the Company.

            Notwithstanding the above, the Sellers may appoint their own
            auditors, at their own discretion and sole cost, for the purpose of
            calculating the Earnings After Taxes of SLI Group for any of the
            Accounting Years. The Purchaser shall give the auditors appointed by
            the Sellers access to the documentation and information necessary
            for this purpose. For the avoidance of doubt, the Parties expressly
            acknowledge and accept that the calculation effected by the auditors
            appointed by the Sellers pursuant to the present paragraph will in
            no way bind the Purchaser, the Auditors and/or the Expert (as
            defined below), and that its purpose is to assist the Sellers in
            assessing the calculation of the Auditors.

      (ii)  In the event any of the Parties (hereinafter the "DISPUTING PARTY")
            disagrees with the calculation notified by the Auditors, the
            Disputing Party shall communicate such disagreement (hereinafter a
            "DISPUTE") in written form to the other Party within twenty (20)
            calendar days as from the date on which it is notified by the
            Auditors. The Parties will try in good faith to reach an agreement
            on the Dispute within the ten (10) calendar days following said
            communication or, failing such agreement, the Parties will try to
            agree within the same time period on the independent expert to whom
            the Dispute will be submitted. In default of agreement, the
            Disputing Party shall immediately, and the other Party will also be
            entitled to request the President of the Spanish Chartered
            Accountants Institute to nominate an independent expert.
            Hereinafter, the aforementioned expert designated by agreement of
            the Parties or, if applicable, by the President of the

                                       13
<PAGE>

            Spanish Chartered Accountants Institute shall be referred to as the
            "EXPERT". The Expert, who shall be appointed by the President of the
            Spanish Chartered Accountants Institute within fifteen (15) calendar
            days following the request from either Party to such effect, shall
            be a well reputed international auditing firm, not related to either
            Party, not only at the moment when the designation takes place, but
            also in the two (2) years preceding thereto. In particular, in view
            of the current relation existing with the Parties, the Parties agree
            to instruct the President of the Spanish Chartered Accountants
            Institute so that neither Deloitte and Touche, nor Arthur Andersen
            nor KPMG be appointed as the Expert.

            The Disputing Party shall, and the other Party will also be entitled
            to, immediately upon designation of the Expert and acceptance of its
            designation as such, submit the Dispute to the Expert, clearly and
            expressly reflecting the reasons for such Dispute. The Expert shall
            (acting as an expert and not as an arbitrator) decide on the Dispute
            and on the final calculation of the Net Worth of SLI Group as of
            Completion Date and/or of the Earnings After Taxes of SLI Group (as
            the case may be) according and subject to the agreements contained
            in this Agreement and its Annexes. The Parties will use their best
            endeavours to ensure that the calculation shall be made by the
            Expert and shall be notified simultaneously to the Purchaser and the
            Sellers within the thirty (30) calendar days following submission of
            the Dispute. Said calculation shall be definitive and binding for
            both Parties, and shall not be subject to any claims of any nature
            whatsoever by either of the Parties between them.

            The fees incurred by the Expert for making the calculation provided
            for in the present section (ii) of this Clause 2.2: [...***...].

            The Parties shall instruct the Auditors and the Expert to make and
            notify their calculations as soon as possible and, in any case:

            (a)   in respect of the calculations by the Auditors: (1) of the Net
                  Worth of SLI Group and of the Earnings After Taxes of SLI
                  Group for year 2001, no later than March 22, 2002 and (2) of
                  the Earnings After Taxes of SLI Group for the remaining
                  Accounting Years, no later than three (3) months after the
                  closing of the corresponding Accounting Year; and

            (b)   in respect of the calculation of the Expert, in case there is
                  a Dispute: (1) of the Net Worth of SLI Group and the Earnings
                  After Taxes of SLI Group for year 2001, on or before the later
                  of the following dates (1.x) April 30, 2002 and (1.y) thirty
                  (30) calendar days after the submission to the Expert of the
                  Dispute; and (2) of the Earnings After Taxes of SLI Group, on
                  or before the later of the following dates (2.x) four (4)
                  months after the closing of the corresponding Accounting Year
                  and (2.y) thirty (30) calendar days after the submission of
                  the Dispute to the Expert.

            The Parties agree that interests at a rate of 6 months EURIBOR plus
            1.5% shall accrue over the amounts payable to the Sellers by the
            Purchaser for the Remaining

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       14
<PAGE>

            Amount of the Initial Consideration or the Tranche corresponding to
            each Accounting Year. Said interests shall accrue from April 30 of
            the year subsequent to the Accounting Year of reference in each case
            and until the Payment Date (as defined below) of the Remaining
            Amount of the Initial Consideration or of the corresponding Tranche,
            as applicable.

            For the purpose of the present Agreement, the day on which the
            Remaining Amount of the Initial Consideration and on which the
            Amount Payable under each Tranche shall be paid by the Purchaser to
            the Sellers pursuant to Clause 2.3.(i).b) and Clause 2.3.(ii).b),
            respectively shall be hereinafter referred to as "PAYMENT DATE" or
            "PAYMENT DATES".

            The date on which the amount calculated by the Auditors or the
            Expert (as the case may be) becomes binding and definitive for both
            Parties pursuant to the preceding section (i) of the present Clause
            2.2 or to this section (ii) of the present Clause 2.2, respectively,
            shall be hereinafter referred to as the "NOTIFICATION DATE".

      (iii) The earnings after taxes arising from the Excluded Business will not
            be taken into account for the purpose of calculating either the Net
            Worth of SLI Group or the Earnings After Taxes of SLI Group of any
            Accounting Year even after the same is acquired by SLI Group, as the
            case may be (except in case of Clause 7.4.vii below); as an
            exception to the above, if during the year ending on December 31,
            2001 the Excluded Business has suffered a loss, such a loss shall be
            taken into account in calculating the Net Worth of SLI Group as of
            Completion Date.

      (iv)  For the purpose of calculating the Net Worth of SLI Group and the
            Earnings After Taxes of SLI Group, the Auditors and the Expert will
            apply the same principles as those applied for the purpose of
            calculating the earnings obtained by the UTi Group, i.e. US GAAP
            accounting principles modified as explained in ANNEX (2.2.iv) hereto
            (the general and particular accounting rules and criteria referred
            to in this paragraph as modified in Annex 2.2.iv shall be
            hereinafter referred to as the "AGREED ACCOUNTING BASIS"), without
            prejudice to the other adjustments and criteria established for each
            of the Tranches.

      (v)   Should the Earnings After Taxes of SLI Group for any given
            Accounting Year, except for the one ending on January 31st, 2006, be
            a loss, said loss will be set-off against the earnings obtained in
            the subsequent Accounting Year for the purpose of calculating its
            Earnings After Taxes of SLI Group and so on in succeeding Accounting
            Years until the loss has been fully set-off against the earnings
            arising in such Accounting Years. No Tranche shall be payable for
            the Accounting Year in question where the loss has occurred or has
            been deemed to have occurred as a consequence of the application of
            the set-off provisions referred to above because of the losses
            set-off being greater than the earnings obtained that Accounting
            Year (but only up to the necessary amount to set-off the
            corresponding loss in full).

      (vi)  The Parties expressly agree that, as long as the payment of any of
            the Tranches from the Purchaser to the Sellers is pending according
            to this Agreement, Mr. Carlos Luis Escario Pascual and Mr. Jose
            Maria Escario Pascual shall actively intervene, as first executive
            officers, in the management and performance of the

                                       15
<PAGE>

            Company's and the Subsidiaries' Board, as per Clause 6.1 below.
            Notwithstanding the above, the Chief Financial Officer of SLI Group
            will be appointed by the Board of Directors of the Company following
            the Purchaser's proposal, at the Purchaser's own discretion, having
            into account that he/she will be a person with an adequate profile
            for that post. Mr. Carlos Luis Escario Pascual and Mr. Jose Maria
            Escario Pascual will not be entitled to remove said Chief Financial
            Officer from his/her post.

            The aforementioned paragraph shall not be understood as limiting in
            any way the full ability of the Purchaser, as owner of 100% of the
            Shares, to adopt or make the Company and/or any of the Subsidiaries
            adopt any action and/or corporate resolution affecting SLI Group,
            although such actions and/or resolutions affecting SLI Group shall
            be expressly communicated in writing to the Sellers.

            Notwithstanding the above, the Sellers jointly, through the Sellers'
            Representative, may object (expressly and in writing) to any action
            or corporate resolution to be adopted by the Company and/or any of
            the Subsidiaries and proposed by the Purchaser, which:

            (a)   is outside the ordinary course of business of the SLI Group;
                  or,

            (b)   is other than under an arm's length terms and conditions; or,

            (c)   consists on entering into a long-term contract where the
                  costs, in aggregate, to be incurred up to the of January 31st,
                  2006 by SLI Group will materially exceed the income generated
                  for SLI Group up to such date; for this purpose, an excess of
                  costs over income of [...***...] Euros or greater shall be
                  considered material.

            Should the Parties fail to reach an agreement on the above-mentioned
            circumstances, the issue shall be submitted to arbitration as per
            subClause 12.2 below. The arbitrator shall determine whether any
            proposal falls into any of the circumstances under (a), (b) or (c)
            above and, thus, whether it may or may not be objected by the
            Sellers, in default of agreement by the Parties in this respect. The
            arbitrator determination being definitive and binding for the
            Parties.

            In case that, despite the express and written joint objection of the
            Sellers to an action and/or resolution, the Purchaser and/or the
            Company and/or the corresponding Subsidiary decides to adopt the
            same, the Purchaser shall compensate the Sellers for any adverse
            effect caused to the Sellers during the effectiveness of this
            Agreement arising from such an action or corporate resolution, in
            order to place the Sellers in the same position as if such action
            and/or corporate resolution had not been adopted.

            Should the Parties fail to reach an agreement on the quantification
            of such compensation, the arbitrator shall determine the same in a
            definitive and binding way for the Parties.

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       16
<PAGE>

2.3   PAYMENT OF THE TOTAL PURCHASE PRICE.

      The Total Purchase Price shall be paid by the Purchaser to the Sellers on
      the following dates and by the following means:

      (i)   Payment of the Initial Consideration.

            The Initial Consideration shall be paid in cash, on the following
            dates:

            a)    On the date hereof 1,537,664,082 Pesetas, i.e. 9,241,547.26
                  Euros, are hereby paid to the Sellers by means of four
                  nominative bank checks issued in favour of each of the Sellers
                  in proportion to the Shares transferred by each of them,
                  resulting in the following amounts:

                  -     [...***...] Euros in favour of Mr. Carlos Luis Escario
                        Pascual.

                  -     [...***...] Euros in favour of Mr. Jose Maria Escario
                        Pascual.

                  -     [...***...] Euros in favour of Mr. Mariano Arturo
                        Escario Pascual.

                  -     [...***...] Euros in favour of Mr. Juan Ignacio Escario
                        Pascual.

                  All of the Sellers grant in favour of the Purchaser a formal
                  receipt of payment for the aforementioned amount.

            b)    The remaining amount of the Initial Consideration, which shall
                  be calculated as per Clauses 2.1 and 2.2 above, should the
                  same be a positive amount, plus the interests defined in
                  paragraph (ii) of sub-Clause 2.2, if applicable (the
                  "REMAINING AMOUNT OF THE INITIAL CONSIDERATION"), shall be
                  paid by the Purchaser to the Sellers on the Payment Date,
                  which shall be: (i) March 31, 2002, should the Auditors have
                  determined the amount by March 22, 2002 and there not be a
                  Dispute; (ii) should the Auditors determine the amount after
                  said date, the fifth calendar day after the Notification Date
                  of the Auditors' calculation; and (iii) should there be a
                  Dispute, the fifth calendar day after the Notification Date of
                  the Expert's calculation of the Net Worth of SLI Group as of
                  Completion Date and of the Earnings After Taxes of SLI Group
                  for the year 2001. The Remaining Amount of the Initial
                  Consideration shall be paid through bank transfer in
                  immediately available funds to the Sellers, value that same
                  date.

                  Should the Remaining Amount of the Initial Consideration be a
                  negative amount, the Sellers shall reimburse to the Purchaser
                  said amount on the same period indicated in the preceding
                  paragraph.

                  The Parties agree that should the Purchaser or the Sellers, as
                  applicable, not pay punctually to the other Party the amounts
                  due pursuant to the present section b) of sub-Clause 2.3.(i),
                  nominal annual interests at a rate of 6 months EURIBOR plus 3%
                  shall accrue daily over said amounts from the corresponding
                  Payment Date until the day in which it is effectively paid to
                  the said Party.

      (ii)  Payment of the following Tranches.

      Items indicated with "[...***...]" are subject to a Confidential Treatment
      Request

                                       17
<PAGE>

      The payment of the Second, Third, Fourth and Fifth Tranches shall be
      carried out in accordance with the following terms and conditions:

      a)    Should the Tranche for any given Accounting Year, except for the one
            ending on January 31st, 2006, be negative due to the Earnings After
            Taxes of SLI Group for that Accounting Year being a loss, section
            (v) of Clause 2.2 shall apply.

      b)    Should the Tranche for any given Accounting Year be a positive
            amount (hereinafter "THE AMOUNT PAYABLE"), the Purchaser shall pay
            to the Sellers the Amount Payable in the proportion established in
            sub-Clause 2.4 below.

            The Purchaser shall pay the Sellers the Amount Payable (without any
            request to that extent from the Sellers to the Purchaser being
            necessary) on the Payment Date, which shall be the tenth calendar
            day after the corresponding Notification Date.

      c)    The Purchaser shall pay the Amount Payable under any Tranche to the
            Sellers in the following way:

            (1)   The Purchaser shall transfer to the Sellers, without any
                  disbursement from the latter, a number of unregistered
                  ordinary shares issued by UTi Worldwide (whether issued for
                  that purpose or otherwise), free from any liens, charges or
                  encumbrances or rights in favour of third parties and with
                  voting and economic rights equal to and no more obligations
                  than the currently existing ordinary shares of UTi Worldwide,
                  which value shall equal the Amount Payable. The ordinary
                  unregistered shares to be delivered to the Sellers shall be
                  hereinafter referred to as the "UTI WORLDWIDE'S SHARES". For
                  that purpose, the Parties agree that the value of each of the
                  UTi Worldwide's Shares (hereinafter the "AGREED VALUE") is
                  equal to the average market price of the UTi Worldwide's
                  shares on NASDAQ during the three (3) calendar-month term
                  immediately prior to the Completion Date, which amounts to
                  15.8176 US $ per share.

            (2)   However, should the Agreed Value be greater than the lower of
                  the following prices:

                  (x)   the average (media aritmetica) market price of the UTi
                        Worldwide's Shares on NASDAQ during the month
                        immediately prior to the corresponding Notification
                        Date; or

                  (y)   the closing market price of the UTi Worldwide's Shares
                        on NASDAQ on the Notification Date (the lower of (x) and
                        (y) shall be hereinafter referred to as the "MARKET
                        PRICE").

                  the Sellers shall be entitled to jointly request the Purchaser
                  to pay the Amount Payable according to one of the following
                  methods (at the Sellers' joint discretion):

                  (A) all in cash (in funds immediately available to the
                  Sellers); or

                  (B) through the transfer in favour of the Sellers of the UTi
                  Worldwide's Shares (as defined above) and, in addition
                  thereto, paying to the Sellers in

                                       18
<PAGE>

                  cash, in immediately available funds, the difference between
                  the Agreed Value and the Market Price per UTi Worldwide Share
                  multiplied by the number of UTi Worldwide Shares transferred.

                  The joint option of the Sellers shall be notified to the
                  Purchaser within the five (5) days following Notification
                  Date; shall the Purchaser not receive said joint notification
                  within that period of time, it shall be understood that the
                  Sellers jointly choose to be paid as established under
                  sub-Section (B) above.

                  For the purpose of this Agreement, the market price of UTi
                  Worldwide's Shares at any day shall be the last sale price on
                  NASDAQ for that day or, should there not be a published last
                  sale price for UTi Worldwide's Shares corresponding to that
                  day for any reason, for the closest preceding day for which
                  there is such a published last sale price.

            (3)   Should the Purchaser fail to punctually pay all or part of the
                  Amount Payable (hereinafter the "DEFAULTED AMOUNT PAYABLE"),
                  due to any reason whatsoever not attributable to the Sellers,
                  according to the terms and time periods provided for under
                  this section 2.3.(ii) and in any of the remaining Clauses of
                  the present Agreement:

                  (A)   The Sellers will be automatically entitled to jointly
                        claim from the Purchaser any of the following
                        performances:

                        (i)   to request the transfer of the UTi Worldwide's
                              Shares pending under the Defaulted Amount Payable;
                              or

                        (ii)  to request the payment in cash (in funds
                              immediately available to the Sellers) of the
                              greater of the following amounts: (a) the
                              Defaulted Amount Payable; (b) the closing market
                              value of the UTi Worldwide's Shares pending under
                              the Defaulted Amount Payable on NASDAQ on the
                              Notification Date; (c) the average market value on
                              NASDAQ of the UTi Worldwide's Shares pending under
                              the Defaulted Amount Payable during the calendar
                              month immediately prior to the Notification Date;
                              and (d) the highest closing market value of the
                              UTi Worldwide's Shares pending under under the
                              Defaulted Amount Payable on NASDAQ on any day as
                              from Notification Date to the day on which the
                              Sellers are paid in full by the Purchaser.

                        The joint option by the Sellers of any of the
                        above-cited alternatives shall not prevent the Sellers
                        from choosing any of the other alternatives, for as long
                        as the payment chosen by the Sellers has not been made
                        in full by the Purchaser. For that purpose, the Sellers'
                        Representative will notify the Purchaser the Sellers'
                        joint option and the Purchaser will have five (5)
                        working days as from said notification to pay in
                        accordance with the same.

                                       19
<PAGE>

                  (B)   Likewise, the joint option by the Sellers between
                        alternative under 2.3.(ii)c)(2).(A) and alternative
                        under 2.3.(ii).c).(2).(B), shall not prevent the Sellers
                        from subsequently jointly choosing (for the payment of
                        the Defaulted Amount Payable) the other alternative by
                        means of a written notification sent to the Purchaser,
                        for as long as the Defaulted Amount Payable has not been
                        paid in full by the Purchaser. For that purpose, the
                        Sellers' Representative will notify the Purchaser the
                        Sellers' joint option and the Purchaser will have five
                        (5) working days as from said notification to pay in
                        accordance with the same.

                  (C)   In addition to the above, for any part of the Defaulted
                        Amount Payable which is to be paid in cash by the
                        Purchaser in accordance to the present Clause 2.3.(ii),
                        the Sellers will be automatically entitled to jointly
                        claim from the Purchaser the payment of delay interest
                        (hereinafter "DELAY INTEREST"). The Delay Interest shall
                        accrue over the cash part of the Defaulted Amount
                        Payable during the period going from the corresponding
                        Payment Date to the day in which it is effectively paid
                        to the Sellers' Representative by the Purchaser
                        (hereinafter "DELAY PERIOD").

                        The nominal annual interest rate of the Delay Interest
                        shall be 6 months EURIBOR plus 3% during the first month
                        of the Delay Period, and shall increase 1% on an annual
                        basis for each subsequent month of the Delay Period.

                  (D)   The fulfilment by the Purchaser of its obligation
                        deriving from the joint option by the Sellers of any of
                        the alternatives mentioned under section (B) of this
                        sub-Clause 2.3.(ii).c).(3) together with the payment of
                        the corresponding Delay Interest, as applicable, shall
                        prevent the Sellers from further claiming any damages
                        against or requesting any other remedy from the
                        Purchaser for reason of or in relation to the delay in
                        the payment of the Amount Payable.

                  (E)   In case of exchange of the shares of UTi Worldwide or
                        any other modification or alteration of said shares due
                        to any reason including, without limitation, merger,
                        split-off, spin-off, share split, reorganisation or any
                        other reason whatsoever, the Parties hereto shall
                        immediately initiate negotiations in good faith in order
                        to introduce, prior to the carrying out of such
                        alterations, any changes to the foregoing calculation
                        procedures, as are required in order to obtain the same
                        economic effects for both Parties as envisaged above.
                        Should the Parties fail to reach an agreement in the
                        term of thirty (30) days from the beginning of the
                        negotiations, the matter shall be submitted to
                        arbitration as per Clause 12.2 below.

                  (F)   All calculations of UTi Worldwide's Shares to be
                        delivered to the Sellers yielding a fractional number
                        shall be understood, for purposes of this clause, to be
                        rounded upwards to the nearest whole integer.

                                       20
<PAGE>

2.4      DISTRIBUTION OF PAYMENTS AMONG THE SELLERS.

         Any payment to be made by the Purchaser to the Sellers hereunder will
         be delivered to the Sellers' Representative, who shall distribute the
         same among the Sellers in the following proportion:

<TABLE>
<CAPTION>
SELLER                                                         %
<S>                                                         <C>
Mr. Carlos Luis Escario Pascual                             [...***...]%
Mr. Jose Maria Escario Pascual                              [...***...]%
Mr. Mariano Arturo Escario Pascual                          [...***...]%
Mr. Juan Ignacio Escario Pascual                            [...***...]%
</TABLE>

         Except otherwise provided for under the present Agreement, any amount
         to be paid by the Purchaser to the Sellers shall be paid by means of
         transfer (in funds immediately available to the Sellers) to the bank
         account, opened on behalf of the Sellers' Representative, as notified
         by the Sellers' Representative to the Purchaser from time to time.

2.5      INDEMNITY TO THE SELLERS.

         The Purchaser will indemnify the Sellers of any loss or damage suffered
         by them if, following the transfer to them of the UTi Worldwide's
         Shares they are, through events outside their control, unable to
         register them within a reasonable time.

3.       REPRESENTATIONS AND WARRANTIES.

3.1      REPRESENTATIONS AND WARRANTIES OF THE SELLERS.

         The Sellers hereby jointly and severally (solidariamente) represent and
         warrant (hereinafter "THE REPRESENTATIONS AND WARRANTIES OF THE
         SELLERS") to the Purchaser, with effect as of the date hereof, as
         follows:

3.1.1    Due Incorporation and Existence.

3.1.1.1  The Company and the Subsidiaries are validly and duly incorporated and
         existing under the laws of the respective jurisdictions and, if
         applicable, are duly registered, at the appropriate Commercial
         Registries according to the law applicable to each of them. The Company
         and all the Subsidiaries have the necessary legal capacity to own their
         respective assets and to carry out their activities and have been
         operating since their incorporation in accordance with the laws and
         regulations applicable to the same (including, without limitation,
         those related to anti-trust, personal data protection and corporate).

3.1.1.2  Neither the Company nor any of the Subsidiaries has been dissolved or
         liquidated; no resolution to dissolve or liquidate the same has been
         adopted and there is no action or request pending or, to the best of
         the Sellers' knowledge, threatened to accomplish such dissolution or
         liquidation.

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       21
<PAGE>

3.1.1.3  Neither the Company nor any of the Subsidiaries has been declared
         bankrupt and no action or request is pending or, to the best of the
         Sellers' knowledge, threatened to declare it bankrupt. Neither the
         Company nor any of the Subsidiaries has been granted or has filed for a
         provisional moratorium of payment ("suspension de pagos"). Neither the
         Company nor any of the Subsidiaries will incur in any liability nor
         suffer any loss as a result or in relation to the prior holding of
         [...***...], nor to the transfer of the same.

3.1.1.4  The Company and the Subsidiaries are governed by their respective
         By-laws which are registered with the corresponding Commercial Register
         or, otherwise, attached hereto as ANNEX (3.1.1.4); there are no other
         agreements, arrangements or understandings of any type governing the
         relationships among their respective shareholders or their organisation
         or business activities.

3.1.1.5  The Company's and all of the Subsidiaries' books of minutes have been
         duly legalised, contain complete, accurate and reliable records of the
         meetings and company resolutions of directors and shareholders since
         their incorporation until the date hereof, as well as other information
         due pursuant to applicable laws, and bear all appropriate signatures.
         None of the Company's and the Subsidiaries' corporate resolutions have
         been challenged or suspended by any Court and, to the best of the
         Sellers' knowledge, there is no ground for challenges against them in
         the future. All resolutions which have to be registered at a Commercial
         Registry and all other documents required to be delivered by law or
         regulation by or in respect of the Company and/or the Subsidiaries to
         the competent authorities have been duly registered and delivered,
         except for those referred to in ANNEX (3.1.1.5) hereto. Neither the
         Company nor any of the Subsidiaries has passed any corporate resolution
         since August 31, 2001 (save for those necessary for carrying out the
         transactions to which Recital V refers).

3.1.1.6  A complete and updated list of the persons to which the Company and/or
         any of the Subsidiaries has granted powers of attorney, whether general
         or special (including banking powers), which are in force as of the
         date hereof, is attached hereto as ANNEX (3.1.1.6).

3.1.2    Share Capital.

3.1.2.1  The total share capital of the Company and the Subsidiaries and their
         respective shareholders is that provided for in Recital IV of the
         present Agreement. All of the shares of the Company and the
         Subsidiaries have equal economic and voting rights, and are fully
         subscribed and paid-up.

3.1.2.2  The Sellers have absolute legal title to the Shares, having no
         obligation to transfer the Shares to a third party, or to create any
         claim, pledge, lien, charge or encumbrance, with respect to the Shares,
         having also absolute right, power and authority to sell, transfer and
         deliver the Shares and, indirectly, the shares of the Subsidiaries held
         by the Company.

3.1.2.3  The Shares and the shares issued by the Subsidiaries: (i) have been
         validly issued; (ii) are freely transferable, the formalities and
         requirements for their transfer provided for in the By-laws having been
         previously complied with; (iii) are not subject to any voting
         agreements or arrangements ("pactos de sindicacion"); and (iv) are free
         of encumbrances,

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       22
<PAGE>

         charges, options, claims, liens, pledges, burdens, attachments, third
         party's rights or any other type of "in rem" rights, or rights to
         purchase ("call") or to sell ("put").

3.1.2.4  No shares in the Company or in the Subsidiaries or preferential
         subscription rights, exchangeable or convertible debentures, warrants
         or any other type of security or instrument which may give rise,
         directly or indirectly, to the subscription or acquisition of shares in
         the Company or any of the Subsidiaries have been issued (different from
         those referred to in Clause (3.1.2.1.)) or are in the process of being
         issued.

3.1.2.5  Neither the Company nor any of the Subsidiaries has created and does
         not hold, directly or indirectly, shares or interest in any subsidiary
         or branch, different from the Subsidiaries.

3.1.3    Financial Statements.

3.1.3.1  The annual accounts (balance sheet, profit and loss account and annual
         report) of the Company and all of the Subsidiaries, corresponding to
         the fiscal year closed on December 31, 2000 and the financial
         statements (balance sheet and profit and loss account) as of September
         30, 2001 and the management non-audited non-consolidated accounts as of
         December 31, 2001 (all such documents shall be jointly hereinafter
         referred to as the "DISCLOSED FINANCIAL STATEMENTS"), a copy of which
         is attached hereto as ANNEX (3.1.3.1), have been drawn up according to
         the Spanish applicable laws and regulations and generally accepted
         accounting principles in Spain consistently applied, have been audited
         in the cases so required by law applicable in the applicable
         jurisdiction, and accurately reflect a true and fair view of the
         economic and financial situation and the result of operations of the
         Company and the Subsidiaries at the date and during the period covered
         by such Disclosed Financial Statements,; the Disclosed Financial
         Statements do not contain any untrue statement of a material fact which
         would render them misleading; the Disclosed Financial Statements duly
         reflect all actions and transactions carried out, and contingencies,
         liabilities and obligations incurred, by the Company and the
         Subsidiaries in the period covered therein and up to their
         corresponding date; and the Disclosed Financial Statements contain all
         the provisions which are required to be made according to any
         applicable law or regulation and generally accepted accounting
         principles in Spain consistently applied.

         The Company's and all of the Subsidiaries' accounting duly legalised
         records precisely record all income and expense items, and all assets
         and liabilities in relation to the Company and each of the
         Subsidiaries, respectively, in accordance with accounting principles
         generally accepted in Spain. In particular, the Sellers represent that
         the value of the assets of the Company and the Subsidiaries as of
         Completion Date is neither less than (a) the book value of the assets
         reflected in the Disclosed Financial Statements as of December 31, 2001
         nor than (b) the value taken into account by the Auditors (and the
         Expert in case of Dispute) in calculating the Net Worth of SLI Group as
         at the Completion Date.

         There are no outstanding commitments to make further investments
         whether in fixed assets or otherwise, including contributions and
         investments in respect of the Subsidiaries.

         The Sellers represent the existence and legitimacy of all loans and
         accounts receivables recorded by the Company and/or the Subsidiaries in
         the Disclosed Financial Statements

                                       23
<PAGE>

         and those accrued up to the date hereof as from the date of the
         Disclosed Financial Statements, net of any provision for bad or
         doubtful debts that may have been recorded at that date. All loans and
         accounts receivable reflected in the Disclosed Financial Statements as
         of December 31, 2001 and those accrued between that date and Completion
         Date have been or will be satisfied or recoverable in full in the
         ordinary course at the date they fall due in accordance with the usual
         terms of trading. It is understood that a loan or account receivable
         will be deemed to not have been collected in full at maturity when they
         are provisioned for, contested or protested.

3.1.3.2  The sales effected to clients, as from January 1, 2001 until the date
         hereof, are consistent with usual purchase volumes and they have not
         been artificially or extraordinarily promoted or increased by means of
         unusual (either for their quantity or for the nature of the same)
         bonuses, discounts or payment conditions. To the best of the Sellers'
         knowledge, there is no circumstance which can give rise or is likely to
         give rise to any claim for repayment of amounts paid to the Company
         and/or any of the Subsidiaries by any of their clients.

3.1.3.3  Except for the transactions referred to under the Recital V and those
         transactions referred to in ANNEX (3.1.3.3), as from December 31, 2001,
         the Company and all of the Subsidiaries have carried out their
         respective activities in an absolutely normal and ordinary fashion,
         following the ordinary course of business and the practices, policies
         and lines of action followed until that time, the Company and/or the
         Subsidiaries have not undergone any substantial adverse change or loss
         of any kind (including without limitation their financial or market
         position), and the Sellers have not omitted any relevant information to
         the Purchaser whatsoever (including distribution of dividends or
         granting of any other rights to shareholders, administrators or any
         other third party and extension or change of the conditions of any
         agreement).

3.1.3.4  The Company and each of the Subsidiaries, as appropriate, are the
         absolute legal owners, the registered owners (if applicable) and the
         sole possessors of the assets which are reflected on the asset side of
         the Disclosed Financial Statements, free from any mortgages, pledges,
         charges, encumbrances, liens, attachments or any other type of "in rem"
         rights, restrictions to transfer, or reservations of title ("reserva de
         dominio"), except for those referred to in ANNEX (3.1.3.4) and those of
         the Excluded Business which have been transferred to the Owner of the
         Excluded Business.

         All the assets used by the Company and all of the Subsidiaries are in
         adequate operational conditions and have been duly maintained and, if
         still under warranty, all conditions and requirements necessary to
         benefit from the warranties have been met.

3.1.3.5  The Company and all of the Subsidiaries have duly deposited their
         respective annual accounts and management reports for all the fiscal
         years lapsed since their incorporation until and including fiscal year
         2000, included, with the applicable Commercial Registry, if so required
         by the law applicable in the corresponding jurisdiction.

3.1.3.6  The Company and all of the Subsidiaries keep all accounting books
         legally required; such books have been duly legalised and contain
         complete, accurate and reliable records of all credits, debits and
         other information due pursuant to applicable laws and generally
         accepted accounting principles in Spain.

                                       24
<PAGE>

3.1.3.7  Neither the Company nor any of the Subsidiaries has, at any time as
         from December 31, 2001, condoned or waived any debt, right or claim
         against any shareholder or any Associated Party.

         For the purposes of this Agreement, "ASSOCIATED PARTY" is defined as:
         (i) any of the Sellers; (ii) any relative of any of the foregoing up to
         the fourth degree, and (iii) any company which is controlled by any of
         the foregoing (as the term "control" is defined in Section 4 of Law
         24/1988 of 28 July on the Securities Market).

3.1.3.8  The Sellers expressly represent and warrant that the assets and
         liabilities of SLI Group transferred to the Owner of the Excluded
         Business and which are reflected in the agreement attached as ANNEX (V)
         hereto and its exhibits thereto (hereinafter "THE EXCLUDED BUSINESS
         DETAILS") belong to the Excluded Business; in particular, they
         represent that the Excluded Business Details: (i) reflect all the
         assets and liabilities of the Excluded Business; (ii) do not reflect
         any asset used for the purpose of developing the other businesses of
         SLI Group; and (iii) do not omit any liability related to the Excluded
         Business and do not include any liability related to the remaining
         businesses of SLI Group.

         Further, the Sellers expressly represent and warrant that the
         transactions referred to in the Recital V above, have not had and will
         not have as a consequence any contingency, debt, claim, obligation,
         undertaking or damage of any kind for SLI Group.

3.1.4    Real Estate.

3.1.4.1  The Company and the corresponding Subsidiary are the absolute legal
         owners of the real estate identified in ANNEX (3.1.4.1) hereto (the
         "REAL ESTATES"), which are free from lessees, liens and encumbrances of
         any kind, except as indicated in the aforementioned Annex. The Company
         and the corresponding Subsidiary have good title thereto and all rights
         necessary to enjoy the Real Estates. The Company and the Subsidiaries
         are in possession of the title deeds and documents necessary to prove
         their respective title, and the absolute and clear ownership of the
         Real Estates by the Company or the corresponding Subsidiary is duly
         recorded at the Land Registry. The Sellers are not aware of any
         circumstances which would affect the Company's or the corresponding
         Subsidiary's title to the Real Estates, such as a compulsory purchase
         order or notification of potential expropriation and there are no
         circumstances likely to lead to any such circumstances to appear.

3.1.4.2  ANNEX (3.1.4.2) lists the buildings occupied by the Company and/or any
         of the Subsidiaries by virtue of lease agreements ("LEASED PREMISES").
         With respect to these lease agreements, except for those matters
         expressly stated in said Appendix:

         (i)      There are no sub-leases.

         (ii)     None of the parties concerned have failed to comply with the
                  terms and conditions set out in the above-mentioned lease
                  agreements and the respective lessors have never made any
                  claim relating to the payment of rent by the Company or the
                  corresponding Subsidiary or for any other failure to comply
                  with the relevant agreement.

                                       25
<PAGE>

         (iii)    There are no restrictions affecting the lease arrangement
                  which impedes or restricts the use of the Leased Premises in
                  the manner and circumstances that they are currently used or
                  in which they are intended to be used.

         (iv)     Even where the Company or the corresponding Subsidiary has
                  modified or altered any of the Leased Premises with
                  appropriate approval or authorisation, there is no obligation
                  to return the Leased Premises to their original state at the
                  end of the lease concerned.

         (v)      Currently no negotiations or discussions are being held
                  relating to any change in the amount of rent being paid.

3.1.4.3  The legal requirements concerning the use and condition of the Real
         Estates and the Leased Premises have been complied with, including
         those established in the applicable town planning regulations and the
         Real Estate and Leased Premises have the applicable building and
         opening licenses and, until the date hereof, to the best of the
         Sellers' knowledge, no circumstances should restrict the use of the
         above cited Real Estate in the same terms as they are currently being
         used.

3.1.4.4  The Real Estate and Leased Premises are in good state of repair and
         maintenance and are suitable to be used for the same purposes for which
         they have been used until the date hereof.

3.1.4.5  No right of access to the Real Estate and Leased Premises is shared
         with or subject to determination by a third party, save for those
         referred in ANNEX (3.1.4.1).

3.1.4.6  No actions, claim, proceeding, demand, dispute or liability (contingent
         or otherwise) in connection with the Real Estate and Leased Premises is
         outstanding or is any likely to be made or arise.

3.1.4.7  No Real Estate and no Leased Premises has been transferred as part of
         the Excluded Business.

3.1.5    Agreements.

3.1.5.1  ANNEX (3.1.5.1.) contains a list or copy of all agreements and
         obligations entered into by the Company and/or any of the Subsidiaries
         currently in force: (a) of an amount exceeding [...***...], or (b) of a
         duration exceeding 1 year, or (c) for which termination by any of the
         parties thereto requires the payment of a penalty exceeding [...***...]
         or advance notice exceeding six months. All contracts, agreements and
         understandings entered into by the Company and/or any of the
         Subsidiaries or by which the Company and/or any of the Subsidiaries has
         been or is bound (i) have been entered into on an arm's length basis;
         (ii) are respectively within the scope of the Company's or the
         corresponding Subsidiary's corporate purpose and ordinary business;
         (iii) are or have been valid, binding and

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       26
<PAGE>

         enforceable in accordance with their terms and in full force and
         effect; (iv) do not violate any applicable law or regulation; (v) are
         not of a loss making nature, that is, known to be likely to result in a
         loss on completion or performance; and (vi) contain termination
         provisions which are reasonable and customary for the type of
         transactions and activities to which they are related, however, such
         termination provisions do not grant the right of unilateral termination
         by any other party due to a change of control over the Company and/or
         any of the Subsidiaries nor does such change of control directly
         trigger termination of any such contract, agreement and understanding.

         Neither the Company nor any of the Subsidiaries is (and no other party
         thereto is) in breach of any of their respective obligations under any
         of the aforesaid contracts, agreements and understandings.

3.1.5.2  Neither the Company nor any of the Subsidiaries has sold or otherwise
         disposed of, since the date of its respective incorporation, any
         shares, or other assets or rights except in the ordinary course of
         business in circumstances from which any liability (whether contingent
         or otherwise) may arise by virtue of any obligation, representation,
         warranty or indemnity in connection with such sale or disposal.

3.1.5.3  Neither the Company nor any of the Subsidiaries does currently have nor
         will it have in the future any liability arising from past
         relationships with any Associated Party..

3.1.5.4  Neither the Company nor any of the Subsidiaries has entered into any
         agency or distribution agreements different from those referred to in
         ANNEX (3.1.5.1). To the best of the Sellers' knowledge, no current or
         former agent or distributor is entitled to any kind of indemnity or
         severance payments.

3.1.5.5  The Sellers expressly represent that the agreement of intent (acuerdo
         de intenciones) signed by [...***...] and attached hereto as ANNEX
         (3.1.5.5), will be terminated by the Sellers and [...***...] for the
         purpose of releasing the Company and/or any other company of the SLI
         Group from the obligations assumed therein at no cost for SLI Group.

3.1.6    Taxes.

3.1.6.1  The Company and all of the Subsidiaries have complied, and are current
         and up-to-date, with the required taxes, tax withholdings (including,
         but not limited to, tax withholdings on any remuneration paid to any
         persons respectively rendering services to the same), payments,
         declarations, returns, filings, information disclosures, formalities or
         any other obligations established in any applicable law or regulation
         as well as any other fees, duties, including customs duties or special
         contributions, or payments to any governmental, regional or local
         authority or agency or to any third party as may be required to conduct
         their business.

3.1.6.2  Neither the Company nor any of the Subsidiaries has any tax liabilities
         (whether actual, contingent or deferred) other than those provided for
         in the Disclosed Financial

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       27
<PAGE>

         Statements and except for the outcome of the proceedings mentioned in
         ANNEX (3.1.6.2.).

3.1.6.3  Neither the Company nor any of the Subsidiaries has carried out,
         co-operated in or induced any third party to commit acts or omissions
         which constitute an offence, infringement or breach of tax laws.

3.1.6.4  The Company and all of the Subsidiaries have sufficient records
         relating to past events, including any elections made, to calculate the
         tax liability or relief which would arise on any disposal or on the
         realisation of any asset respectively owned by the Company and/or any
         of the Subsidiaries.

3.1.6.5  At the date of this Agreement, except for the proceeding referred to in
         Annex (3.1.6.2), no event has occurred which may have interrupted,
         according to Spanish legal provisions or other applicable legislation,
         the statute of limitation of any of the fiscal years 1997, 1998, 1999
         and 2000, with regard to any of the taxes which the Company and/or any
         of the Subsidiaries is subject to.

3.1.6.7  Except for the tax audit referred to in Annex (3.1.6.2), neither the
         Company nor any of the Subsidiaries has suffered a tax inspection
         audit.

3.1.6.8  Notwithstanding the exceptions regarding Annex (3.1.6.2) made in the
         present sub-Clause 3.1.6, the Sellers will be liable (in accordance
         with Clause 4 below) vis-a-vis the Purchaser for the outcome of the
         proceedings mentioned in said Annex.

3.1.6.9  Notwithstanding anything of the foregoing, the Sellers expressly
         represent that no tax contingency, liability or any kind of damage will
         arise for SLI Group and/or for the Purchaser as a consequence of or in
         relation to: (i) the sale by the Company of shares number [...***...]
         to [...***...] of SERVICIOS LOGISTICOS INTEGRADOS SLI, S.A. to Mr. Jose
         Maria and Mr. Carlos Escario Pascual by virtue of the public deed
         granted on January 23, 2002 and/or (ii) the granting of an option and
         usufruct by Mr. Jose Maria and Mr. Carlos Escario Pascual in favour of
         the Company over said shares, by virtue of the public deed granted on
         January 25, 2002, before the Public Notary of Madrid, Mr. Rafael
         Bonardell Lenzano, with number 228 of his public record, which
         settlement from Stamp Duty (i.e. liquidacion del Impuesto sobre
         Transmisiones Patrimoniales y Actos Juridicos Documentados) is attached
         hereto as ANNEX (3.1.6.9).

3.1.7    Labour and Social Security.

3.1.7.1  Labour:

         (i)      Attached as ANNEX (3.1.7.1.i)) is a list of all the employees
                  on the payroll of the Company and all of the Subsidiaries and
                  a detailed breakdown showing their seniority, employment term,
                  occupational category and remuneration.

                  For the purposes of this Agreement, "remuneration" will
                  include the salary; extra payments; bonuses; premiums;
                  incentives; stock options; profit sharing

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       28
<PAGE>

                  arrangements; travel, accident, disability, life or medical
                  insurance; formal or informal pension plans; company cars;
                  loans; luncheon vouchers; or any other type of labour
                  condition or compensation (whether in cash or in kind, whether
                  formal or informal) received by any employee, executive,
                  officer or director of the Company and all of the
                  Subsidiaries.

         (ii)     The Company and all of the Subsidiaries have complied with the
                  laws and regulations governing employment relations including
                  any applicable Collective Bargaining Agreements, and are
                  up-to-date in the payment of all remuneration due to their
                  respective employees. The employment contracts entered into by
                  the Company and all of the Subsidiaries with their respective
                  employees reflect the actual works and other circumstances
                  carried out by the Company's and the respective Subsidiary's
                  employees, and there is not any circumstance, either legal or
                  otherwise, under which said employment contracts should be
                  modified, extended or transformed without the Company's or the
                  respective Subsidiary's consent.

                  The employment relationships between the Company and all of
                  the Subsidiaries and their respective employees are subject to
                  the Collective Bargaining Agreements set out in ANNEX
                  (3.1.7.1.ii), which have and will continue to be complied with
                  in full, and no other collective agreement affects these
                  employment relationships. No private company agreements are
                  being negotiated which affect or could affect the Company's
                  and/or any of the Subsidiaries' employees.

         (iii)    Neither the Company nor any of the Subsidiaries has entered
                  into top executive employment contracts ("contratos de alta
                  direccion") as regulated in Royal Decree 1382/1985, of August
                  1, except for that contained in ANNEX (3.1.7.1.iii).

         (iv)     No current or former employee, executive, officer or director
                  of the Company and/or any of the Subsidiaries is entitled to
                  any kind of termination indemnity or severance payment
                  exceeding that established as a minimum by any applicable law,
                  regulation or the aforementioned Collective Bargaining
                  Agreement.

         (vi)     Neither the Company nor any of the Subsidiaries has had any
                  collective dispute regarding their employees in the last three
                  (3) years. Neither the Company nor any of the Subsidiaries are
                  involved, nor have they given notice to any of their employees
                  of any redundancies, whether individual or collective. The
                  Sellers are not aware of any circumstances which are likely to
                  give rise to any collective dispute or which could make a
                  collective redundancy procedure to be necessary or convenient.

         (vii)    Neither the Company nor any of the Subsidiaries has undergone
                  any employment inspection over the past five (5) years and
                  they are currently not undergoing any such inspection.

         (viii)   There is no loan, advance payment, guarantee or financing of
                  any type granted by the Company or any of the Subsidiaries to
                  any past or current employee, executive or director or any of
                  their relatives up to the fourth degree of consanguinity or
                  affinity, which is currently pending payment or execution.

                                       29
<PAGE>

         (ix)     None of the service agreements entered into by the Company
                  and/or any of the Subsidiaries, whether or not currently in
                  force, could be deemed to constitute an employment
                  relationship with the Company and/or the corresponding
                  Subsidiary. However, this representation is not made in
                  respect of the truck drivers ("autonomos") rendering transport
                  services to the Company and/or any of the Subsidiaries, in
                  respect of which the Sellers will not assume any liability
                  under this Agreement.

         (x)      The employees identified in ANNEX (3.1.7.1.x) are exclusively
                  related to the Excluded Business and have been duly
                  transferred to the Excluded Business. None of the employees
                  identified in Annex (3.1.7.1.i) should have been transferred
                  to the Excluded Business.

3.1.7.2  Social Security:

         (i)      Until the date hereof, the Company and all of the Subsidiaries
                  have complied with the laws and regulations governing Social
                  Security ("Seguridad Social") and have made the required
                  withholdings, payments, filings and information disclosures.

         (ii)     There are no obligations to pay any medical insurance, any
                  pension premiums to any pension funds or other similar
                  schemes, covering the current or former employees, officers,
                  directors or shareholders of the Company and the Subsidiaries,
                  except as shown in ANNEX (3.1.7.1.i) attached hereto.

         (iii)    Neither the Company nor any of the Subsidiaries is bound to
                  any commitment towards current or former employees, officers,
                  directors or shareholders to pay any complementary amount to
                  the subsidies provided by the Social Security system in the
                  event of any type of employees' disability.

3.1.8    Intellectual and Industrial Property.

3.1.8.1  All intellectual and industrial property rights including, but not
         limited to, patents, inventions, designs, industrial designs,
         copyrights, authors' rights, databases, trademarks, computer programs,
         brand names, company signs, internet domains, know-how and any other
         right contained in Legislative Royal Decree 1/1996, of 12 April, and
         all confidential information and rights with a similar or analogous
         content which could exist world-wide, whether registered or not, and
         all applications made in this respect used in the business of the
         Company and/or any of the Subsidiaries ("Intellectual or Industrial
         Property"):

         (i)      are the property of the Company or the respective Subsidiary,
                  or have been validly licensed to the Company or the
                  corresponding Subsidiary in accordance to the agreements
                  attached hereto as ANNEX (3.1.8.1.i);

         (ii)     are valid and may be exercised;

         (iii)    to the Sellers' best knowledge, are not being violated or
                  attacked by any person and there is no opposition to them;

         (iv)     are not licensed to any other person and no authorisation has
                  been granted in this respect;

                                       30
<PAGE>

         (v)      ANNEX (3.1.8.v) contains a list of rights which have been
                  registered with the Spanish Patent and Trademark Office or
                  similar organisation abroad, when registration was requested
                  and if there is an exclusive right to use such items; and

         (vi)     there are no claims or applications outstanding which could
                  affect the veracity and accuracy of the above in the event of
                  being granted or denied.

3.1.8.2  The procedures employed and products and services commercialised by the
         Company and/or the Subsidiaries do not require the use, appropriation
         or violation of the intellectual or industrial property rights of third
         parties which are not held by the Company and/or the corresponding
         Subsidiary.

3.1.8.3  Neither the Sellers, nor the Company, nor any of the Subsidiaries have
         failed to comply with their confidentiality obligations and no third
         party may make any claim as a result of owning or using any
         intellectual or industrial right and, neither the acquisition of the
         Shares or the disclosure to the Purchaser of this confidential
         information will give rise to the failure to maintain confidentiality
         which could be the subject of a claim by third parties against the
         Sellers, the Company or any of the Subsidiaries.

3.1.8.4  Neither the Company nor any of the Subsidiaries has violated, and does
         not violate, any use authorisation and does not unlawfully appropriate
         any patent, trademark, brand name, copyright, exclusive know-how,
         commercial secret or any other intellectual or industrial property
         right which pertains or is owned by any individual or company and
         neither the Sellers, nor the Company, nor any of the Subsidiaries have
         any knowledge of the existence of any pending lawsuits or any threat to
         file any lawsuit against any of them by third parties as a result of
         any alleged violation of these rights.

3.1.9    Business Continuity.

         The personal property used by the Company and/or any of the
         Subsidiaries in the ordinary course of the Acquired Business, including
         "inter alia", machinery, tools, data processing equipment, computer
         programs, furniture and other tangible personal property, as well as
         the material components of any type used by the Company and/or any of
         the Subsidiaries have been sufficient for carrying out their respective
         business activities until the date hereof.

3.1.10   Insurance.

         Attached as ANNEX (3.1.10) is a list of all the insurance policies in
         force taken by the Company and each of the Subsidiaries. Said insurance
         policies are sufficient to duly insure all of the Company's and each of
         the Subsidiaries' activities, assets and risks affecting their
         respective business in accordance with habitual practice in the sector
         and currently all premiums have been paid as agreed.

                                       31

<PAGE>

         All the obligations arising from said insurance policies including, but
         not limited to, disclosure obligations, have been complied with.

3.1.11   Quality and normalisation.

         The machinery, assets and procedures used by the Company and each of
         the Subsidiaries comply with the standards of quality and health
         generally accepted in the relevant industry, and have obtained the
         legally required official approvals.

3.1.12   Subsidies.

         No subsidies have been granted in favour of the Company and/or the
         Subsidiaries.

3.1.13   Administrative and Environmental Matters.

3.1.13.1 The Company and the Subsidiaries have not been and may not be held
         liable under, and comply and have complied with, the administrative and
         environmental laws and regulations applicable to their business, assets
         and activities (whether of a local, Autonomous Region, State nature, as
         well as International Treaties to which Spain is a party and European
         Region or any other kind).

         The Sellers expressly represent that there are no sanctions proceedings
         initiated or, to the best of their knowledge, pending due to a
         potential environmental infringement.

3.1.13.2 There exist no soils or underground water polluted by the Company or
         any of the Subsidiaries, their respective business, assets or
         activities.

3.14     United States Foreign Corrupt Practices Act and other matters.

         Neither the Sellers nor any of the companies within SLI Group, and none
         of their respective directors, employees or representatives, as
         applicable,

         (a) have taken any action which is or could be deemed to be a violation
         of the Foreign Corrupt Practices Act in respect of the Company and/or
         the Subsidiaries on the assumption that it applied to the Company
         and/or the Subsidiaries,

         (b) are aware of any action or conduct which could be deemed to be a
         violation of the Foreign Corrupt Practices Act in respect of the
         Company and/or the Subsidiaries on the said assumption and

         (c) have received, offered, given, paid, authorized the payment of, or
         promised, directly or indirectly, any asset, money, gift or other thing
         of value (whether of the Company, any of the Subsidiaries or otherwise)
         to any person, including but not limited to any foreign official, for
         the purpose of unlawfully obtaining or granting any advantage (whether
         of a business nature or not) to any person, which could affect the
         Company and/or any of the Subsidiaries in any way.

                                       32

<PAGE>

3.1.15   Litigation.

         Except for that reflected in ANNEX (3.1.15), there is no litigation,
         nor any disputes, administrative proceedings, arbitration, written
         charges or written complaints, current or pending or, to the best of
         the Sellers' knowledge, threatened, which may adversely affect or
         involve the Company and/or any of the Subsidiaries. Neither the Company
         nor any of the Subsidiaries is in default in the compliance of any
         judicial, administrative or arbitration judgement and is not undergoing
         an inspection or investigation of any kind by any authority (except for
         those mentioned in the present Agreement or in any Annex hereto).

3.1.16   Licenses and permits.

         The Company and all of the Subsidiaries have obtained and hold the
         licences, permits, approvals and authorisations which are required
         regarding their respective business activities as they are currently
         carried out, and their assets. Such licenses, permits, approvals and
         authorisations are in full force and effect, have not been cancelled,
         revoked, suspended or changed in any way, have not been assigned,
         transferred, or granted to third parties, and are not subject to any
         condition, restriction or any other limitation and, to the best of the
         Sellers' knowledge, there is no reason to believe (including without
         limitation the execution and completion of this Agreement) that they
         might be suspended, cancelled, revoked, changed or not renewed.

3.1.17   No Conflict.

         The execution and performance of this Agreement and all other documents
         to be executed or performed hereunder: (i) will not require any
         consent, approval or notice to or from any of the Sellers, the Company
         or any of the Subsidiaries (save for those already obtained and
         established in the Company's or in the Subsidiaries' By-laws), and (ii)
         will not conflict with, result in the breach, termination or, to the
         best of the Sellers' knowledge, not renewal of, or constitute a default
         under, any contract, agreement, obligation, resolution or other
         instrument to which the Sellers, the Company or either one of the
         Subsidiaries are a party or by which the Sellers, the Company or any of
         the Subsidiaries are bound or affected (including, without limitation,
         those related to the military business of SLI Group).

         Without limitation of the foregoing, the Sellers expressly represent
         that they have not been informed that, nor are they aware of any
         circumstance which could lead them to suspect that any of the
         agreements entered into by the Company and/or any of the Subsidiaries
         in relation to the military business will be terminated.

3.2      REPRESENTATIONS AND WARRANTIES OF THE PURCHASER.

         The Purchaser represents and warrants to the Sellers as follows (the
         "REPRESENTATIONS AND WARRANTIES OF THE PURCHASER"):

         (i)      The Purchaser is a corporation duly incorporated and validly
                  existing under the Spanish law, not yet recorded at the
                  Commercial Registry and UTi Worldwide is a corporation duly
                  incorporated and validly existing under the laws of British
                  Virgin Islands and recorded at the Commercial Registry of
                  British Virgin Islands with number 141257. Both of them are in
                  good standing, and have the required legal capacity for
                  entering into this Agreement and for performing the terms and

                                       33

<PAGE>

                  conditions hereof, without breaching their respective By-laws,
                  any applicable legal provisions or any agreement or contract
                  to which it is a party.

         (ii)     This Agreement is duly executed by the Purchaser and UTi
                  Worldwide and constitutes a valid and binding agreement for
                  both the Purchaser and UTi Worldwide, enforceable against the
                  Purchaser and UTi Worldwide in accordance with its terms.

         (iii)    All the UTi Worldwide Shares currently are of the same class
                  and serie and are equal in voting and economical rights and
                  obligations.

         (iv)     The Purchaser and UTi Worldwide have the necessary capacity
                  and have and/or will carry out any and all actions that may be
                  necessary to ensure the transfer in favour of the Sellers of
                  the property over the UTi Worldwide's Shares during the
                  validity of this Agreement in order to be able to pay to the
                  Sellers, from time to time, the Amount Payable when it becomes
                  due and payable according to the provisions established
                  herein. Likewise, the Purchaser and UTi Worldwide represent
                  and warrant that there are currently no legal, corporate or of
                  any other nature impediments (and there are no reasons to
                  believe that such impediments could appear in the future) that
                  could prevent the Sellers from receiving the UTi Worldwide
                  Shares that could correspond to them according to the
                  provisions of this Agreement, even if such transfer in favour
                  of the Sellers would have to be made on the date hereof.

         (v)      The Purchaser declares that, as far as it is aware, UTi
                  Worldwide complies with the United States Securities
                  regulations and, specifically with the public information
                  obligations, so that an orderly diligent businessman could
                  rely on such publicly available information in order to make a
                  proper judgement on the UTi Worldwide's Shares for purposes of
                  accepting them as payment of the Amount Payable.

         The Purchaser shall hold the Sellers' fully indemnified and harmless in
         respect of any damages and losses suffered as a result of the breach by
         the Purchaser of any of the Representations and Warranties of the
         Purchaser.

3.3      NO MATERIAL INFORMATION UNDISCLOSED.

         The Representations and Warranties of the Sellers contained in the
         present Agreement and its Annexes, as well as all of the documents
         provided to the Purchaser by the Sellers and/or the Company, their
         employees and advisors with respect to the present Agreement and its
         Annexes are true and accurate. None of the Representations and
         Warranties of the Sellers in the present Agreement and its Annexes hide
         or omit any significant fact or information whatsoever, or any whose
         importance could be reasonably considered as necessary for a third
         party to have an adequate knowledge of the Company and all of the
         Subsidiaries.

3.4      NO EXCEPTIONS.

         The Representations and Warranties of the Sellers contained herein are
         not subject to any exception, save those expressly stated above and/or
         expressly stated by the Sellers in this Agreement, and will not be
         affected by any examination made by, for or on behalf of the Purchaser
         (including the due diligence referred to under Recital IX above), the
         knowledge of the Purchaser and of any of the Purchaser's respective
         officers, directors, stockholders,

                                       34

<PAGE>

         employees, advisors or agents, or the acceptance by the Purchaser of
         any certificate or opinion from the Sellers, their respective officers,
         directors, stockholders, employees, advisors or agents, except as
         otherwise provided in this agreement and/or its annexes.

3.5      ANNEXES.

         Each and all the exceptions to the Representations and Warranties of
         the Sellers pursuant to Clause 3.1 above are deemed to have been made
         as of the date hereof, regardless of the specific dates stated in each
         of the Annexes attached hereto containing such exceptions.

4.       LIABILITY.

4.1      DAMAGES AND LOSSES.

         The Sellers hereby jointly and severally undertake to hold the
         Purchaser fully indemnified and harmless in respect of any damages and
         losses suffered as a result of the inaccuracy, incompleteness or breach
         of any Representation and Warranty of the Sellers contained herein or
         breach of any obligation assumed herein (save for those obligations
         that are undertaken individually by any of the Sellers such as, for
         instance, confidentiality or non compete, among others), including
         reimbursement of all professional fees (including reasonable lawyers'
         fees), expenses incurred as a result thereof and the interests over
         said damages and losses suffered until the full indemnification of the
         same at a nominal annual interest rate of 6 months EURIBOR plus 1.5%,
         which originates prior to the date of the present Agreement or which,
         if arising after this date, is due to a circumstance occurring prior to
         this date (the "DAMAGES"). For the purpose of establishing the Damages,
         any award or determination should be made with a view to placing the
         Purchaser in the position it would have been in if the inaccuracy,
         incompleteness or breach had not existed. In relation to the
         aforementioned interests to be accrued over damages and losses and to
         be paid by the Sellers to the Purchaser, the Parties expressly agree
         that they will accrue (i) as from Completion Date, regarding Damages
         arising from the lower value of any of the Company's or any of the
         Subsidiaries' assets, as well as the amount of any fictitious or
         non-existent asset, and (ii) as from the date on which the
         corresponding Notice is sent to the Sellers, for Damages arising from
         any other circumstance.

         In particular, and without limitation to the generality of the
         foregoing, the following would be considered Damages, given the
         circumstances established in the preceding paragraph and provided
         always that such Damages refer to circumstances occurring prior to the
         date hereof:

         a)       Any charge or tax levied against the Company or any of the
                  Subsidiaries, their respective businesses or properties for
                  which no provision has been made in the Disclosed Financial
                  Statements, if legally required.

         b)       Any Social Security obligation relating to the Company or any
                  of the Subsidiaries, their respective businesses or properties
                  for which no provision has been made in the Disclosed
                  Financial Statements, if legally required.

                  In the event any tax or Social Security claim being lodged,
                  the Sellers shall reimburse the Purchaser for the principal,
                  surcharges, interest, fines and court or

                                       35

<PAGE>

                  out-of-court expenses incurred during negotiations, in
                  particular, with the tax or Social Security authorities or for
                  any opposition or defence processes in courts.

         c)       All debts and liabilities of the Company and/or of any of the
                  Subsidiaries which have not been revealed or for which no
                  provision has been made in the Disclosed Financial Statements,
                  if legally required..

         d)       The amount of any loan and/or account receivable mentioned in
                  Clause 3.1.3.1 above which is not collected in accordance with
                  said Clause.

         e)       The lower value of any of the Company's or any of the
                  Subsidiaries' assets which are not recorded in the accounts in
                  accordance with accounting principles generally accepted in
                  Spain, as well as the amount of any fictitious or non-existent
                  asset.

         Notwithstanding the foregoing, should the Purchaser be fully
         indemnified by the Sellers, including, if applicable, through the
         provision of an adequate bank guarantee, for the Damages arising from a
         Contingency (as defined below) which had been taken into account as
         losses or expenses of SLI Group for the purposes of calculating the
         Earnings After Taxes for any of the Second to the Fifth Tranches, the
         amount accounted as losses and expenses shall be added up again for the
         purpose of calculating the Earnings After Taxes of the Accounting Year
         in which the Purchaser has been indemnified.

         The full payment by the Sellers to the Purchaser of the Damages
         suffered as a result of any inaccuracy, incompleteness or breach of any
         Representation and Warranty of the Sellers, shall prevent the Purchaser
         from requesting any other remedy from the Sellers for reason of said
         inaccuracy, incompleteness or breach.

4.2      STATUTE OF LIMITATIONS.

         As a general rule, the Sellers shall be liable vis-a-vis the Purchaser
         for a term of [...***...] from the date hereof with regard to the
         untruthfulness, inaccuracy or incompleteness of any Representation and
         Warranty of the Sellers. As an exception, the Sellers' liability with
         regard to taxes, labour, social security, environmental and
         administrative matters shall expire when the respective statute of
         limitations expires. The Sellers expressly waive the lapsing periods
         envisaged in Article 1490 of the Spanish Civil Code and Articles 336
         and 342 of the Spanish Code of Commerce.

         Upon the expiration of the respective statute of limitations, the
         Sellers' indemnity obligation will continue in full force and effect
         with regard to any Contingency (as defined under Clause 5.1 below)
         which has been the subject of a Notice (as defined under Clause 5.1
         below) within the term of the respective statute of limitations.

4.3      SELLERS' LIABILITY AMOUNT LIMITATIONS.

         The Parties agree the following thresholds and limitations to the
         Sellers' liability for Damages:

         (i)      The Purchaser shall not be entitled to be indemnified by the
                  Sellers for:

                                       36

<PAGE>

                  (a)      any claim for Damages of an amount less than
                           [...***...] Euro. For this purpose, all claims
                           related to or arising from one same or substantially
                           the same event, circumstance, act or omission (or a
                           series of or related events, circumstances, acts or
                           omissions) shall be deemed to constitute just one
                           claim.

                  (b)      unless and until the aggregate Damages claimed
                           (without taking into account the claims under the
                           threshold referred to under (a) above) exceeds
                           [...***...] Euro; once the amount of Damages claimed
                           exceeds the aforementioned threshold, the Parties
                           expressly agree that the Sellers shall be liable in
                           front of the Purchaser of all the Damages claimed up
                           to that moment, from the first Euro.

         (ii)     The maximum liability assumed by the Sellers for Damages
                  amounts to the Total Purchase Price received and to be
                  received during the validity of the present Agreement.

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       37

<PAGE>

4.4      SELLERS' LIABILITY IN RESPECT OF THE EXCLUDED BUSINESS.

         The Parties expressly agree that should the Purchaser or any of the
         companies of the SLI Group receive any claim under the agreement
         attached hereto as Annex (V) or in any way related to the Excluded
         Business, the Purchaser will notify that claim to the Sellers and the
         Sellers will have to immediately and fully indemnify the Purchaser (in
         accordance to Clause 4.1) of all the Damages arising from that claim.
         In that case, Clauses 4.2, 4.3 and 5 will not be applicable and, thus,
         the Sellers' liability to indemnify such Damages will have no
         limitation (of a time, amount or any other nature) and the Sellers will
         not be entitled to object, defend or reject any such claim in any way.

5.       CLAIMS' PROCEDURE.

5.1      NOTICE.

         The Purchaser will notify to the Sellers any fact, act, circumstance or
         third party claim which gives or may give rise to liability hereunder
         as a result of the untruthfulness, inaccuracy, incompleteness or breach
         of a Representation and Warranty or any covenant or obligation
         hereunder (a "CONTINGENCY"). The Contingency will be notified in
         writing to the Sellers' Representative, pursuant to Clause 11.2 below
         (the "NOTICE") as soon as possible after the Purchaser becomes aware of
         the same, and, in any case, in the maximum term of thirty (30) calendar
         days from the moment when the Purchaser became effectively aware of the
         Contingency, without prejudice of that established for under Clause
         5.2. The Notice will include a reasonably detailed explanation of the
         facts and, if possible, an estimate of the amount claimed from the
         Sellers (the "CLAIMED AMOUNT"). Once the aforementioned period of
         thirty (30) calendar days (or, if applicable, in respect of third party
         claims, the period established in section 5.2 below for the Notice to
         be given by the Purchaser) has elapsed, the Purchaser shall
         automatically lose its right to claim for Damages in respect of the
         corresponding Contingency.

         Within thirty (30) calendar days of the receipt of the Notice or, in
         case of a Third Party Claim (as defined below) within the term
         indicated in Clause 5.2 below, the Purchaser and the Sellers will
         negotiate in good faith in order to reach an agreement with regard to
         (i) the existence of the Contingency, and (ii) the amount to be paid to
         the Purchaser in order to keep it harmless. Within the aforementioned
         thirty (30) calendar day period, the Sellers will jointly reply in
         writing to the Purchaser, through the Sellers' Representative, whether:

         (i)      They fully accept the Contingency and the Claimed Amount; or

         (ii)     They accept the Contingency and/or the Claimed Amount only in
                  part;

         (iii)    They do not have enough information to be in a position as to
                  neither accept nor reject the Contingency and/or the Claimed
                  Amount; or,

         (iv)     They reject the Contingency, and thus the full Claimed Amount.

         If the Sellers' Representative do not reply to the Purchaser in writing
         within the above-mentioned thirty (30) calendar day period, the Sellers
         will be deemed to have delivered the reply referred to under (iii)
         above.

                                       38

<PAGE>

         In cases (i) and (ii) above, the Sellers will pay the Claimed Amount
         (or the accepted part thereof) within thirty (30) business days from
         the date of the Sellers' Representative reply to the Notice.

         In cases (ii) (in respect of the non-accepted part of the Claimed
         Amount), (iii) and (iv) above, the decision as to whether or not the
         Claimed Amount shall be borne by the Sellers, shall be submitted to
         arbitration pursuant to Clause 12.2 below, in case the Purchaser and
         the Sellers fail to reach an agreement in this respect within a further
         period of ten (10) days.

         Should the Sellers pay to the Company the Claimed Amount and,
         afterwards, there results (in a definitive way) that there was no
         Damage (as defined hereunder) arising from the circumstance referred to
         in said Notice, the Company shall return to the Sellers the
         aforementioned Claimed Amount received from them.

5.2      THIRD PARTY CLAIMS.

         In the event that the Contingency is a claim raised by a third party
         against the Purchaser, the Company and/or any of the Subsidiaries (a
         "THIRD PARTY CLAIM") the following rules shall apply:

         (i)      In case the law requires that defence against the Third Party
                  Claim be submitted before the expiration of a term, the Notice
                  shall be sent to the Sellers' Representative within the
                  maximum period of thirty (30) calendar days from the moment
                  when the Purchaser became aware of the Third Party Claim and,
                  in any case, within the first half of said legal term and, in
                  any case, the Sellers shall not be held liable for any
                  Contingencies arising therefrom should the Notice have been
                  sent to the Sellers' Representative after the expiration of
                  the first half of said term.

         (ii)     The Sellers will jointly reply to the Purchaser's Notice,
                  through the Sellers' Representative, pursuant to Clause 11.2.
                  below, in the maximum term of fifteen (15) calendar days
                  starting on the date after receipt of the Notice and, in any
                  case, with sufficient time in advance to enable the
                  preparation of an answer to the claim, any of the possible
                  replies referred to under (i), (ii), (iii) or (iv) of Clause
                  5.1. above.

         (iii)    If and when the Sellers accept the Contingency and the Claimed
                  Amount in full (i.e. if their reply is that established under
                  (i) of Clause 5.1 above), they will be jointly entitled to
                  direct the legal defence against the Third Party Claim until a
                  final judgement or decision is rendered or a settlement is
                  reached; and, the Purchaser undertakes to provide them with
                  the information, documentation and cooperation of the Company
                  and/or its Subsidiaries that are reasonably necessary,
                  including the granting of powers of attorney in favour of the
                  advisors jointly designated by the Sellers. In such case, all
                  fees and expenses will be borne by the Sellers, including the
                  obligation to place bonds or provide guarantees in any
                  judicial, administrative or arbitration proceedings. The
                  attorney will be instructed to provide both the Purchaser and
                  the Sellers with copies of all correspondence and any other
                  legal documents and information in relation to the claim
                  during the course of the proceedings. The Sellers shall keep
                  the Purchaser punctually informed of all the acts and
                  documents of the proceedings, giving notice to the Purchaser,
                  in particular, of the summons and the pleadings to be filed on
                  behalf of the Purchaser, the Company and/or its Subsidiaries
                  in reasonable advance. The Purchaser, the

                                       39

<PAGE>

                  Company and its Subsidiaries shall have the right to attend
                  the proceedings to be carried out vis-a-vis third parties, as
                  well as to review in advance the pleadings that are going to
                  be filed on its behalf.

         (iv)     If the Sellers' reply is either of those provided for under
                  section (ii) or (iii) of Clause 5.1 above, the Sellers will be
                  jointly entitled to direct the legal defence against the Third
                  Party Claim in accordance with section (iii) of this
                  sub-Clause 5.2, provided that said direction is expressly
                  requested in the Sellers' Representative reply and section
                  (iii) will apply, except that, in this case, the Sellers: (a)
                  will not be allowed to settle the Third Party claim without
                  the Purchaser's prior and written express consent (which shall
                  not be unreasonably withheld), and (b) shall consider the
                  comments/suggestions of the Purchaser regarding the pleadings
                  or writs that are going to be filed by the Seller and, as long
                  as reasonably possible, include said comments/suggestions in
                  the pleadings and writs. In case the Sellers are not found
                  liable of the Third Party Claim and the Third Party Claim is
                  fully won against the corresponding third party by the Company
                  and/or the Subsidiary, the Sellers will be entitled to claim
                  from the Company and/or the Subsidiaries, as applicable, the
                  reimbursement of any reasonable and justified cost, reasonable
                  fees and expenses incurred for the direction of the legal
                  defence of said Third Party Claim; in any other case, the
                  Sellers will bear all the costs incurred for the direction of
                  the legal defence of said Third Party Claim and will not be
                  entitled to claim any reimbursement from the Purchaser, the
                  Company and/or the Subsidiaries.

                  Nevertheless, should the Purchaser deem, at any moment:

         *        that the Third Party Claim, despite of having been notified to
                  the Sellers, is not under the Sellers' liability, the
                  Purchaser (and not the Sellers) would be entitled to
                  immediately recover the exclusive direction of the legal
                  defence against the Third Party Claim and the Sellers shall be
                  obliged to deliver to the Purchaser all the documents related
                  thereto and do anything necessary for the purpose of changing
                  the legal direction of said Third Party Claim. The Company
                  shall reimburse the Sellers any reasonable and justified
                  costs, reasonable fees and expenses incurred for the direction
                  of the legal defence of said Third Party Claim up to that
                  moment and the Purchaser shall acknowledge that the Sellers
                  are not at all liable for such Third Party Claim and expressly
                  waive its right to claim against them for any such reasons.
                  For anything else (including, the legal direction, settlement,
                  knowledge or information) it would be as if the Third Party
                  Claim would have never been notified to the Sellers. Thus, the
                  Sellers will have no rights in relation to the Third Party
                  Claim.

         *        that the direction of the legal defence by the Sellers in this
                  case could reasonably adversely affect the interests of the
                  Company and/or of any of the Subsidiaries, the Purchaser (and
                  not the Sellers), acting reasonably and following previous
                  consultation with the Sellers, would be entitled to direct the
                  legal defence against the Third Party Claim but: (a) the
                  Purchaser will not be entitled to settle the Third Party Claim
                  without consulting with the Sellers' Representative, and (b)
                  the Purchaser shall consider the comments/suggestions of the
                  Sellers regarding the pleadings or writs that are going to be
                  filed by the Purchaser and, as long as reasonably possible,
                  include said comments/suggestions in the pleadings or writs.

                                       40

<PAGE>

         (v)      If the Sellers' Representative's reply is that referred to
                  under (iv) of Clause 5.1 above or, either one of those
                  referred to under sections (ii) or (iii) of Clause 5.1 but
                  without expressly requesting the direction of the legal
                  defence for the Sellers or if the Sellers' Representative does
                  not reply within the term established for that purpose under
                  section (ii) of the present Clause 5.2, the Purchaser may, at
                  its discretion and without incurring any liability towards the
                  Sellers, direct and control the legal defence. In particular,
                  the Purchaser will be entitled to settle the claim without the
                  Sellers' consent.

         (vi)     In the cases referred to under (iv) (in case the Purchaser
                  directs the legal defence pursuant thereto) and (v) above, the
                  Purchaser shall keep the Sellers punctually informed of all
                  the acts and documents of the proceedings, giving notice to
                  the Sellers' Representative, in particular, of the summons and
                  the pleadings to be filed on behalf of the Purchaser, the
                  Company and/or its Subsidiaries in reasonable advance. The
                  Sellers shall have the right to attend the proceedings to be
                  carried out vis-a-vis third parties, as well as to review in
                  advance the pleadings that are going to be filed. The attorney
                  will be instructed to provide both the Purchaser and the
                  Sellers with copies of all correspondence and any other legal
                  documents and information in relation to the claim during the
                  course of the proceedings.

6.       PERMANENCE. NON-COMPETE. CONFIDENTIALITY. SALE AND CHANGE OF CONTROL.

6.1.     PERMANENCE.

         For the purpose of the present Clause 6.1, the Company shall be
         understood to be replaced by the Purchaser and/or any other company or
         entity, in case the Company is merged into the Purchaser and/or any
         other company or entity.

6.1.1    The Parties recognise their mutual interest in Mr. Jose Maria Escario
         Pascual and Mr. Carlos Escario Pascual (hereinafter the "MANAGERS") to
         be the chief executive officers of the Company and its Subsidiaries
         with all the necessary faculties to such effect (and only subordinated
         to the Board), and to direct the day to day management of the Company
         and the Subsidiaries for at least the period going from Completion Date
         to the Payment Date of the Fifth Tranche (hereinafter the "PERMANENCE
         PERIOD"). The Purchaser expressly undertakes to maintain the Managers
         as Board members and top executive managers of the day-to day
         management of the Company and the Subsidiaries during the Permanence
         Period. The Managers expressly undertake to remain as such Board
         members and top executive managers for the Permanence Period, subject
         to the terms of this Agreement. The Purchaser declares that the Board
         of Directors of the Company will initially consist of 6 members and
         that such Board of Directors will initially include Mr. Peter
         Thorrington and Mr. John Hextall as Board members. However, the
         Purchaser may change the number of the members of the Board of
         Directors and, subject to the present Clause 6.1, the Directors to be
         appointed as such at any moment.

         The Parties expressly acknowledge that the permanence and direct
         involvement of Messrs. Carlos and Jose Maria Escario Pascual in the
         ordinary management of the SLI Group pursuant to the present Clause 6.1
         is an essential reason for them to enter into this Agreement in the
         terms contained herein; notwithstanding the above, the only
         consequences of the breaching by the Purchaser of the present Clause
         6.1 are those

                                       41

<PAGE>

         expressly referred to herein and in no case will give the Sellers the
         right to resolve or terminate this Agreement.

6.1.2    For the above-mentioned purpose, the Purchaser will appoint,
         immediately after the execution of the present Agreement or as soon as
         possible thereafter: (i) both Managers as Joint and Several Managing
         Directors (Consejeros Delegados Solidarios) of the Company; (ii)Mr.
         Carlos Escario Pascual as representative of the Company as Sole
         Administrators of all the Spanish Subsidiaries (except for SERVICIOS
         LOGISTICOS INTEGRADOS SLI, S.A.) and (iii) Mr. Jose Maria Escario
         Pascual as representative of the Company as Sole Administrator of
         SERVICIOS LOGISTICOS INTEGRADOS SLI, S.A.. Both Managers shall also
         remain as Directors of SLI TACISA, INC. and of GSLI-GRUPO DE SERVICOS
         LOGISTICOS INTEGRADOS LDA.

         However, should the Purchaser reasonably consider that either of the
         Managers does not comply with or does not follow the general guidelines
         of UTi Group attached hereto as ANNEX (6.1.2), as amended from time to
         time by UTi Group, the Purchaser will be entitled (without any penalty
         or obligation to indemnify neither the Sellers nor the Managers in any
         way whatsoever, other than as expressly provided for hereunder, if
         applicable), to remove the Manager in breach from its post as Managing
         Director, and immediately appoint him, i.e. either Mr. Carlos Escario
         Pascual or Mr. Jose Maria Escario Pascual, as General Manager (Director
         General) of the Company and/or the corresponding Subsidiary, as
         applicable, and immediately grant the necessary powers of attorney to
         such effect in his favour, with the scope usual for General Managers.
         In that case, the terms and conditions of his employment as General
         Managers will be those provided for under the Service Agreement for
         that case. This is without prejudice of this lack of compliance by any
         of the Managers being considered (as the case may be) a "fair cause"
         for the Voluntary Cessation (as defined below) of the same.

         The Company and the Managers, will sign immediately after the execution
         of the present Agreement one service agreement (the "SERVICE
         AGREEMENT") attached hereto as ANNEX (6.1.2.bis).

         The obligations established in the present Clause 6.1 are undertaken by
         the Purchaser in favour of the Managers and by the Managers in favour
         of the Purchaser in their condition of Sellers under the present
         Agreement and also in their condition as experienced managers of the
         SLI Group. Thus, the Managers will not be entitled to allege their
         condition under the Services Agreement, as General Managers or under
         any other relationship with the Company and/or the Subsidiaries
         (including that of an employment nature), as the case may be, for the
         purpose of objecting to the full compliance of their obligations
         undertaken in the present Clause 6.1.

         Moreover, the Managers undertake to accept and to carry out their posts
         as Managing Directors (Consejeros Delegados) of the Company with the
         required due diligence for which they will be appointed immediately
         after the execution of the present Agreement.

         The Purchaser undertakes to ensure that:

         (i)      Mr. Carlos Escario Pascual is proposed for his appointment as
                  member of the European Regional Executive Team of UTi
                  Worldwide and as Vice President thereof, with functional
                  responsibility in warehousing and distribution division; and

                                       42

<PAGE>

         (ii)     Mr. Carlos Escario Pascual and Mr. Jose Maria Escario Pascual
                  are proposed for their appointment as Iberia Vice Presidents
                  of UTi Worldwide, being entitled to include reference to this
                  post on their UTi Worldwide's business cards.

6.1.3    In case either of the Managers cease or are ceased (in the terms
         defined in the Services Agreement) as Joint and Several Managing
         Directors (except in the case provided for under Clause 6.1.2 above) or
         as General Managers (in the case established in Clause 6.1.2 above) of
         the Company and/or the Subsidiaries, the following will apply:

         (1)      Should the cause for the cease of either or both of the
                  Managers be the expiration of their Services Agreement's term
                  or one of the Managers' death, retirement, inability to
                  continue working (incapacidad permanente) or serious illness
                  ("INVOLUNTARY TERMINATION") , neither the Purchaser nor the
                  Sellers will be entitled to any indemnification.

                  Should both of the Managers (either simultaneously or
                  successively) cease before the expiration of their Services
                  Agreement's term due to Involuntary Termination, neither the
                  Purchaser nor the Sellers shall be entitled to any
                  indemnification whatsoever and any pending Tranches shall be
                  payable in accordance with Clause 2 of the present Agreement.
                  However, the Sellers should be jointly entitled, but not
                  obliged, to jointly request the payment from the Purchaser (by
                  means of a written notification sent to the Purchaser and as
                  an alternative obligation to the payment of the Tranches that
                  have not been yet paid by the Purchaser at that time) the
                  greater of the following amounts, to be divided into as many
                  equal annual instalments as the number of Tranches pending to
                  be paid upon occurrence of the last Involuntary Termination
                  and each of said instalments to be paid on the 30th of April
                  of each year after the occurrence of the last Involuntary
                  Termination:

                  (a)      an amount equivalent to [...***...] of [...***...]
                           the average of the Earnings After Taxes of SLI Group
                           during the Accounting Years closed before the last
                           Involuntary Termination multiplied by the number of
                           Tranches pending to be paid by the Purchaser to the
                           Sellers; and

                  (b)      an amount equivalent to [...***...] of [...***...]
                           the Earnings After Taxes of SLI Group during the last
                           Accounting Year closed before the Involuntary
                           Termination, multiplied by the number of Tranches
                           pending to be paid by the Purchaser to the Sellers.

                  The Parties expressly agree that the amount to be paid by the
                  Purchaser to the Sellers according to this sub-Clause 6.1.3(1)
                  shall never be lower than [...***...] (depending on whether
                  the last Involuntary Termination took place during the course
                  of the Second, Third, Fourth or Fifth Tranche, respectively)
                  of [...***...] the Earnings After Taxes of SLI Group during
                  the year starting on January 1 and ending on December 31,
                  2001.

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       43

<PAGE>

         (2)      Should either of the Managers cease from either of the
                  aforementioned posts, due to any of the following causes
                  (hereinafter referred to as a "VOLUNTARY TERMINATION"): (i)
                  resignation of the Manager (other than as a result of the
                  factual deprival of his responsibilities or authorities as
                  Managing Director or, if applicable, as General Manager; other
                  than as a result of the serious and imputable non compliance
                  of the Company's obligations under the Services Agreement; or,
                  other than as a result of the reorganisation of SLI Group
                  pursuant to Section (4) of the present Clause 6.1.3);;or (ii)
                  as a result of the decision of the Company based on a "fair
                  cause", as defined below, the Purchaser shall be entitled, but
                  not obliged, to replace the Amount Payable (calculated as
                  provided for under Clause 2 above) under the Tranches not yet
                  paid by the Purchaser at the moment of the Voluntary
                  Termination, by the lower of the following amounts:

                  (a)      an amount equivalent to [...***...] of [...***...]
                           the average of the Earnings After Taxes of SLI Group
                           during the Accounting Years closed before the
                           Voluntary Termination multiplied by the number of
                           Tranches pending to be paid by the Purchaser to the
                           Sellers; and

                  (b)      an amount equivalent to [...***...] of [...***...]
                           the Earnings After Taxes of SLI Group during the last
                           Accounting Year closed before the Voluntary
                           Termination multiplied by the number of Tranches
                           pending to be paid by the Purchaser to the Sellers.

                  However, should the "fair cause" be the decrease of the
                  Earnings After Taxes of SLI Group (as provided below) the
                  Purchaser shall be entitled, but not obliged, to replace the
                  Amount Payable (calculated as provided for under Clause 2
                  above) under the Tranches not yet paid by the Purchaser at the
                  moment of the Voluntary Termination only by an amount
                  calculated as per (a) above.

                  In any case, the Parties expressly agree that the total amount
                  to be paid by the Purchaser to the Sellers for all the
                  Tranches not paid by the Purchaser at the moment of the
                  Voluntary Termination according to this sub-Clause 6.1.3(2)
                  shall never be greater than [...***...] (depending on whether
                  the Voluntary Termination took place during the course of the
                  Second, Third, Fourth or Fifth Tranche, respectively) of
                  [...***...] the Earnings After Taxes of SLI Group during the
                  year starting on January 1 and ending on December 31, 2001.

                  The Purchaser shall exercise the right granted in the present
                  section (2) by means of the corresponding notification sent to
                  the Sellers' Representative within one (1) month as from the
                  Voluntary Termination.

                  In case said right is exercised, the Purchaser shall pay to
                  the Sellers' Representative the amount owed hereunder on the
                  following Payment Date. The Purchaser shall also be entitled
                  to elect, at its own discretion, in the aforementioned
                  notification to be sent to the Sellers' Representative, to pay
                  to the

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       44

<PAGE>

                  Sellers the amount payable pursuant to the present section (2)
                  either in cash or in UTi Worldwide shares valuated as
                  established in Clause 2.3(ii)c, understanding as "Notification
                  Date" for that purpose, the date on which the aforementioned
                  notification is sent to the Sellers' Representative. Should
                  the Purchaser not pay punctually the amounts owed to the
                  Sellers under the present section (2), Clause 2.3.(ii).c).(3)
                  will apply.

                  The Parties expressly acknowledge that the Purchaser may
                  elect, at its sole option, to exercise the aforementioned
                  option in respect of all, some or none of the Sellers.

                  The right granted in the present section 6.1.2.(2) to the
                  Purchaser excludes any other remedy (notwithstanding that
                  provided for under the Services Agreement), including any
                  further claim of damages. The full payment by the Purchaser of
                  the amounts referred to in this section 6.1.2.(2) replaces
                  (and consequently extinguishes) the right of the Sellers to
                  request from the Purchaser the payment of the remaining part
                  of the Total Purchase Price that was still pending to be paid
                  by the Purchaser in favour of the Sellers.

                  For the purpose of the present section, the cessation by the
                  Purchaser of any of the Managers for the following causes
                  shall be understood to be based on a "fair cause":

                           -        Any cause which would be considered as a
                                    cause for "fair dismissal" by the Spanish
                                    labour legislation, including the serious
                                    and imputable breach of the Manager's
                                    obligations.

                           -        Due to a decrease of the Earnings After
                                    Taxes of SLI Group of [...***...] or more
                                    each quarter (in respect of the Earnings
                                    After Taxes of the respective preceding
                                    quarter) for three (3) consecutive quarters,
                                    taking into account for this purpose: (a)
                                    that a loss in any quarter should be
                                    considered a [...***...] decrease in the
                                    Earnings After Taxes of SLI Group for that
                                    quarter; and (b) that costs for employment
                                    redundancy and/or early termination of lease
                                    incurred for the purpose of reorganising the
                                    Company and/or any of the Subsidiaries will
                                    not be computed for the purpose of
                                    calculating the Earnings After Taxes of any
                                    quarter.

         (3)      Should either of the Managers cease due to any other cause
                  (different from those provided for under sections (1) or (2)
                  above or (4) below) (hereinafter referred to as a "UNFAIR
                  TERMINATION"), and without prejudice to the consequences
                  provided for under the Services Agreement, the Sellers shall
                  be jointly entitled, but not obliged, to declare immediately
                  due and payable the part of the Total Purchase Price not paid
                  by the Purchaser at the moment of the Unfair Termination and,
                  to such effect, jointly request the Purchaser to pay (as an
                  alternative obligation to the payment of the Tranches that
                  have not been yet paid by the Purchaser at that time) the
                  greater of the following amounts:

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       45

<PAGE>

                  (a)      an amount equivalent to [...***...] of [...***...]
                           the average of the Earnings After Taxes of SLI Group
                           during the Accounting Years closed before the Unfair
                           Termination multiplied by the number of Tranches
                           pending to be paid by the Purchaser to the Sellers;
                           and

                  (b)      an amount equivalent to [...***...] of [...***...]
                           the Earnings After Taxes of SLI Group during the last
                           Accounting Year closed before the Unfair Termination,
                           multiplied by the number of Tranches pending to be
                           paid by the Purchaser to the Sellers.

                  The Parties expressly agree that the amount to be paid by the
                  Purchaser to the Sellers according to this sub-Clause 6.1.3(2)
                  shall never be lower than [...***...] (depending on whether
                  the Unfair Termination took place during the course of the
                  Second, Third, Fourth or Fifth Tranche, respectively) of
                  [...***...] the Earnings After Taxes of SLI Group during the
                  year starting on January 1 and ending on December 31, 2001.

                  The Sellers shall exercise the right granted in the present
                  section (3) by means of the corresponding notification sent by
                  Sellers' Representative to the Purchaser within one (1) month
                  as from the Unfair Termination.

                  In case said right is exercised, the Purchaser shall pay to
                  the Sellers' Representative the amount owed hereunder within
                  one (1) month following the aforementioned notification.
                  Should the Sellers jointly exercise the right granted to them
                  in the present section, in the notification sent to the
                  Purchaser for that purpose they would also express if they
                  jointly elect that the amount payable under this section
                  6.1.3.(3) be paid in cash or in UTi Worldwide's Shares. Should
                  the latter be elected, UTi Worldwide's Shares would be
                  valuated as established in Clause 2.3(ii)c) above,
                  understanding as "Notification Date" the date on which the
                  aforementioned notification is sent to the Purchaser.

                  Should the Purchaser not pay punctually the amounts owed to
                  the Sellers under the present section (3), Clause
                  2.3.(ii).c).(3) will apply.

                  The right granted in the present section 6.1.3.(3) to the
                  Sellers excludes any other remedy (notwithstanding the rights
                  of the Managers under the Services Agreement), including any
                  further claim of damages arising from the cease of either
                  Manager. The full payment by the Purchaser of the amounts
                  referred to in this section 6.1.3.(3) replaces (and
                  consequently extinguishes) the right of the Sellers to request
                  from the Purchaser the payment of the remaining part of the
                  Total Purchase Price that was still pending to be paid by the
                  Purchaser in favour of the Sellers.

         (4)      In the event of the acquisition of shareholding control by a
                  third party, directly or indirectly, over the Company and/or
                  UTi Worldwide Inc together with a substantial renewal of the
                  governing bodies of the Company and/or the

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                  Subsidiaries and/or of UTi Worldwide (i.e. replacement of at
                  least 50% of the members of the Board of Directors of the
                  Company and/or of UTi Worldwide by Directors which were not
                  related with UTi Group up to the moment of the acquisition of
                  said control), the Managers may resign from their posts only
                  within the three (3) months following the aforementioned
                  change or renewal and the Sellers will have the same rights as
                  provided for under Section 6.1.3.(3) above.

                  For the avoidance of doubt, the Parties expressly state that
                  the preceding paragraph will not be applicable and, thus, the
                  Managers shall not be entitled to resign from their posts, in
                  case of: (i) an acquisition of shareholding control if it does
                  not coincide with a substantial renewal of the governing
                  bodies of UTi Worldwide, the Company and/or the Subsidiaries
                  as per the preceding paragraph or (ii) any change in the
                  governing bodies of UTi Worldwide, the Company and/or the
                  Subsidiaries if it does not coincide with an acquisition of
                  shareholding control as per the preceding paragraph.

                  For the avoidance of doubt, the Parties expressly state that,
                  for the purposes of this section 6.1.3.(4), the notion of
                  "shareholding control" shall be the one contained in article
                  42 of the Spanish Code of Commerce ("Codigo de Comercio")..

6.2      NON-COMPETE.

         The Sellers undertake:

         (i)      that they will not, unless prior written authorisation is
                  granted by the Purchaser, directly or indirectly, through a
                  related individual or company, during all time in which they
                  remain rendering their services to the Company and, in any
                  case, during [...***...] thereafter, employ or hire any person
                  who has been an employee, agent or representative of any of
                  the companies of SLI Group during the two-year period prior to
                  said date, or own, manage, operate, join, control, finance or
                  participate in any other form in, or be connected as a
                  principal, agent, representative, consultant, investor, owner,
                  partner, director, manager, joint venture, employee or
                  otherwise with, or establish any contractual ties with, or
                  carry out any other business or professional activity in
                  respect of any employee, company, partnership, business or
                  enterprise competing directly or indirectly with any of the
                  companies of SLI Group; and

         (ii)     to remove from the corporate name of the companies involved in
                  the Excluded Business all of the following words and to not
                  use any of them in any other company directly or indirectly
                  held or controlled by them: "TACISA", "SISTEMAS LOGISTICOS
                  INTERNACIONALES", "SISTEMAS LOGISTICOS DE INTERMEDIACION" and
                  any other which may be confusing with "SERVICIOS LOGISTICOS
                  INTEGRADOS" or "SLI". With respect to the Excluded Business,
                  such removal of corporate's name shall take place the earlier
                  of:

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                  (a)      the transfer of the Excluded Business to a third
                           party; and

                  (b)      the Payment Date of the Fifth Tranche.

         Notwithstanding the above, the Purchaser expressly authorises the
         Sellers to participate in the shareholding of the Excluded Business
         and/or to carry out non-executive posts (i.e. vocal del Consejo) within
         the Board of Directors of the Owner of the Excluded Business,
         [...***...], provided that the Sellers do not carry out any other
         activities related therewith (including, without limitation, any
         executive administration post, as sole/joint administrator or Managing
         Director or any other).

         The non-compete obligations under the present Clause 6.2 is assumed by
         the Sellers in their condition as such, notwithstanding the rights and
         obligations assumed by the Purchaser and the Managers under the
         Services Agreement.

6.3      CONFIDENTIALITY.

         The Sellers undertake, on their own behalf and on behalf of their
         agents and professional advisors, to safeguard the secrecy and
         confidentiality of all information regarding the Company and/or the
         Subsidiaries, and to refrain from using for their own interests and
         purposes or disclosing to third parties, without the prior written
         consent of the Purchaser, any such confidential information, reports
         and documents regarding SLI Group's business activities, including
         without limitation the operation methods and systems, names and
         addresses of customers and suppliers, prices charged and paid by its
         suppliers and customers, technical data on the business' assets
         operations and product manufacture know-how of the Company and/or its
         Subsidiaries.

         This confidentiality undertaking shall not apply when the disclosure of
         such information is required:

         (a)      in order to comply with a legal duty or with a judicial or
                  administrative imperative order;

         (b)      to request or make possible the fulfilment of the rights and
                  obligations hereunder;

         (c)      to comply with the information requirements made by the
                  competition authorities, if applicable; and

         (d)      to inform its advisors and auditors, provided always that they
                  are legally or contractually obliged to maintain the
                  confidentiality of the information received;

6.4      PENALTY CLAUSE.

         Each of the Sellers acknowledges and accepts that the obligations
         undertaken under Clauses 6.2 and 6.3 above, have been essential for the
         Purchaser to adopt its decision to purchase the Shares.

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         In the event of breach by any of the Sellers of any of the obligations
         established under Clause 6.2, the Purchaser shall have the right to
         receive a penalty from the Sellers in the amount of [...***...].

         In the event of breach by any of the Sellers of any of the obligations
         established under Clause 6.3, the Purchaser shall have the right to
         receive a penalty from the Sellers in the amount of [...***...].

         The Sellers shall not be freed from the obligations referred to in
         Clauses 6.2 and 6.3 above upon payment of the penalties stipulated in
         this Clause 6.4, the Purchaser having the right to demand compliance
         with those obligations together with the payment of the penalty.

         In any case, the Parties expressly acknowledge that the breach by the
         Sellers of the obligations established under Clauses 6.2 and 6.3 will
         in no case give the Purchaser the right to resolve or terminate this
         Agreement.

6.5      EMPLOYEES OF SLI GROUP

         The Purchaser hereby undertakes to ensure that the employees of SLI
         Group have access to standard professional promotion policies of UTi
         Group after the consummation of this transaction. The Purchaser further
         declares that it does not currently plan to carry out an employee
         redundancy plan within SLI Group.

6.6      OTHER UNDERTAKINGS

6.6.1    The Purchaser acknowledges the relevance of the foreign Subsidiaries of
         SLI Group (and, in particular, of [...***...]) for the international
         development of the Acquired Business and, therefore, undertakes to make
         its best endeavours to ensure that the activities and the treatment of
         such Subsidiaries remain as currently. In particular, the Purchaser
         acknowledges the relevance of the good service of UTi Worldwide's
         office in New York as regards the military business currently carried
         out by SLI Group.

6.6.2    The Purchaser further undertakes to make its best endeavours to ensure
         that all the computer and software systems, devices, hardware and
         programmes of the UTi Group are implemented in the SLI Group as soon as
         possible.

7.       OTHER COVENANTS.

7.1      SLI NAME AND TRADEMARK.

         SLI Group shall retain the property and right of use of all the
         Intellectual and Industrial Property rights (including the trade name,
         the trade marks, the patents, the computer programs and software, the
         know-how and the good will) currently used by SLI Group.

         Notwithstanding that provided for under Clause 6.2, the Purchaser
         hereby expressly authorises (and further undertakes to ensure that the
         Company and its Subsidiaries

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         authorise) the use by the Sellers of the intellectual and industrial
         property rights and the distinguishing marks of SLI Group attached
         hereto as ANNEX (7.1) in respect of the Excluded Business during a
         period of twelve (12) months as from Completion Date. Once this period
         has elapsed, the Excluded Business may not continue using said
         intellectual and industrial property.

         In any event, the Purchaser hereby undertakes that, at least for as
         long as this Agreement remains in force, the Company and its
         Subsidiaries shall use the distinguishing marks ("signos distintivos")
         of the SLI Group (and namely the trademarks and commercial names) in
         the exercise of its business, together with the UTi marks (but not
         subordinated to UTi's), in such manner that the SLI Group is not
         prejudiced by the decrease or stoppage in their use.

7.2      DEVELOPMENT OF BUSINESS IN SPAIN AND PORTUGAL.

         The Parties hereto agree that any business to be carried out by the UTi
         Group in Spain and/or in Portugal whose purpose is any of the
         activities within the current ordinary course of the Acquired Business
         or any other activity directly or indirectly related thereto, shall be
         carried out by any of the companies of SLI Group.

         This obligation shall be deemed breached by the Purchaser, in the event
         that (i) any of the companies of the UTi Group or (ii) any of the
         companies in which the Purchaser or other companies of the UTi Group
         hold a majority stake carry out in Spain and/or Portugal without SLI
         Group any activities within the current ordinary course of the Acquired
         Business or any other activity directly or indirectly related thereto.

7.3      ESTABLISHMENT OF OPERATIONS IN PORTUGAL.

         The Parties hereto agree to continue their current relationships of
         cooperation as regards the exploitation of the Acquired Business in
         Portugal and, in particular, they agree that such exploitation shall be
         carried out (as at the present time) by [...***...].

         Without prejudice of that provided for under Clause 3.1.5.5 of the
         present Agreement, the Sellers expressly undertake to sign the
         termination of the agreement of intent signed by [...***...] and
         attached hereto as Annex (3.1.5.5), at their sole cost and expense. Any
         amount paid, owed or committed to be paid (whether verbally or in
         writing) to [...***...], for any reason (including the termination of
         said agreement of intent), shall be directly and solely borne by the
         Sellers except for the amount paid to them as salary up to the date
         hereof and for the salary and/or any other amounts to be paid in
         relation to their performance by SLI Group to these two gentlemen in
         the future, if applicable. Accordingly, the Sellers shall indemnify and
         hold the Purchaser and/or the Company and/or the Subsidiaries harmless
         for any amount that any of them have paid in excess of such amount or
         are obliged to pay to [...***...] in the future (save for the salary
         and/or any other amounts to be paid in relation to their performance by
         SLI Group to these two gentlemen in the future, if applicable).

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7.4      THE EXCLUDED BUSINESS.

         The Parties hereto agree as follows in respect of the Excluded
         Business:

         (i)      The agreement entered into for the segregation of the Excluded
                  Business has been attached in Annex (V) hereto.

         (ii)     The Owner of the Excluded Business shall enter into a
                  management agreement with the Company, according to which the
                  Company undertakes to provide the Owner of the Excluded
                  Business with certain basic general management services and
                  the Owner of the Excluded Business undertakes to pay SLI Group
                  a monthly management fee (hereinafter the "MANAGEMENT FEE")
                  all of the above in the terms and conditions established in
                  the document attached hereto as ANNEX (7.4.ii).

         (iii)    Notwithstanding the non-competition obligation as per Clause
                  6.2 above, the Purchaser expressly authorises the Sellers to
                  keep the property of the shares of the Owner of the Excluded
                  Business, except if either of the following circumstances
                  occurs:

                  (a)      If in the period going from January 1 to June 30,
                           2002, the earnings after taxes obtained by the
                           Excluded Business are losses in excess of
                           [...***...].

                  (b)      If in any corporate year occurring after June 30,
                           2002, the earnings after taxes obtained by the
                           Excluded Business are losses in excess of
                           [...***...].

                  For the purpose of verifying the occurrence of any of those
                  circumstances, the Owner of the Excluded Business shall timely
                  provide the Purchaser with monthly management accounts and its
                  Annual Accounts shall be audited by a well reputed
                  international auditing firm previously approved by the
                  Purchaser. The fees incurred by the auditors for carrying out
                  said verification will be borne by the Parties on a
                  [...***...] split.

                  Should the Purchaser not receive the report of the auditors
                  pursuant to the preceding paragraph within the four (4) months
                  following the end of the corresponding period to be verified
                  by them, the Purchaser may request that said verification be
                  carried out by the auditing firm chosen by it, at the sole
                  cost of the Owner of the Excluded Business, which shall in any
                  event have to be previously approved by the Sellers'
                  Representative (whose approval shall not be unreasonably
                  withheld).

                  In the event any of the circumstances occur for any given
                  period, according to the auditors' report, the Sellers shall
                  dispose of the Owner of the Excluded Business within six (6)
                  months as from the moment in which said auditors' report is
                  notified to the Purchaser.

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         (iv)     Should the Excluded Business be transferred to a third party
                  on or before the date when the last Tranche has been paid to
                  the Sellers (or should have been paid according to this
                  Agreement), either by means of the sale of the shares of the
                  Owner of the Excluded Business or directly by transferring the
                  Excluded Business, the Sellers undertake to either: (a) make
                  the acquirer of the Excluded Business assume the obligation to
                  pay to SLI Group the management fee referred to under
                  sub-Clause (i) of the present Clause 7.4 or (b) indemnify and
                  hold SLI Group harmless for any surplus of the administrative
                  capacity of SLI Group directly or indirectly attributable to
                  the Excluded Business.

                  The Purchaser is hereby granted a pre-emption right to acquire
                  the Excluded Business, with preference to any party. For the
                  purpose of exercising such a pre-emption right, the Sellers
                  undertake to notify the transfer of the Excluded Business to
                  the Purchaser with, at least, two (2) months in advance of
                  said transfer and its main terms and conditions. The Purchaser
                  shall exercise its right by means of notifying within thirty
                  (30) days as from said notification its desire to acquire the
                  Excluded Business in the same terms and conditions as those
                  reflected in the aforementioned notification.

                  Should the Sellers breach any of the obligations established
                  in sub-Clause (iii) and/or (iv) of the present Clause 7.4, the
                  Purchaser shall be entitled to offset the amounts with which
                  it should be indemnified according to the above from the
                  Amount Payable of any of the Tranches otherwise due hereunder.

         (v)      Should the Sellers breach any of the obligations established
                  in sections (iii) or (iv) of the present Clause 7.4, the
                  Purchaser shall have the right to receive a penalty from the
                  Sellers in the amount of [...***...] the Management Fee
                  corresponding to the [...***...] immediately preceding said
                  breach. The Sellers shall be freed from the obligations
                  referred to in this section upon payment of said penalty, the
                  Purchaser having the right to demand compliance with those
                  obligations together with the payment of the penalty.

         (vi)     In the event that the Excluded Business is still owned
                  (directly or indirectly) by the Sellers after December 31,
                  2003, because of neither of the circumstances referred to in
                  section (iii) of the present Clause 7.4 having occurred, SLI
                  Group will have the option to purchase the Excluded Business
                  (or, as the case may be, the shares of the Owner of the
                  Excluded Business) at any time as from December 31, 2003 until
                  the Payment Date of the Fifth Tranche at the lower of:

                  (a)      the market value of the Excluded Business; in the
                           event that the Parties cannot agree on said market
                           value during the sixty (60) days following the notice
                           of SLI Group to the Sellers exercising its option,
                           such market value shall be determined by a well
                           reputed international auditing firm appointed by the
                           Purchaser and previously approved by the Sellers
                           (which approval shall not be unreasonably withheld);
                           the fees of said auditing firm shall be borne
                           [...***...] by the Parties; and

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                  (b)      an amount equivalent to [...***...] the earnings
                           after taxes obtained by the Excluded Business during
                           the last fiscal year closed upon exercising the
                           option by SLI Group, according to the last annual
                           accounts audited by the auditors appointed in the
                           manner established under section (a) of the present
                           paragraph.

                  The Parties expressly agree that in any event the purchase
                  price of the Excluded Business in case SLI Group exercises the
                  aforementioned option shall not be less than the net asset
                  value of the Excluded Business.

                  The expenses arising from the option and the subsequent
                  transfer of the Excluded Business (directly or indirectly) to
                  SLI Group shall be borne by the Parties on a [...***...]
                  basis, and the taxes arising from the exercise of the option
                  shall be borne by the Parties according to Law.

         (vii)    In case that, according to section (vi) above, the Excluded
                  Business is acquired by SLI Group for its net asset value, the
                  Sellers shall be entitled to elect at the time of such
                  acquisition whether they want the Excluded Business's earnings
                  to be computed or not for the purpose of calculating the
                  Earnings After Taxes of SLI Group for the Accounting Year in
                  which it is acquired and onwards.

8.       MISCELLANEOUS.

8.1      AMENDMENTS.

         No amendment to the Agreement will be valid unless it is made in
         writing and signed by and on behalf of each of the Parties.

8.2      WAIVERS.

         The failure to exercise or delay in exercising a right, action or
         remedy under the Agreement will not be deemed as a waiver of the right,
         action or remedy or a waiver of any other rights, actions or remedies
         and no single or partial exercise of any right, action or remedy under
         the Agreement will prevent any further exercise of any other right,
         action or remedy.

8.3      INVALIDITY.

         The invalidity, illegality or unenforceability of any provision of the
         Agreement will not affect or impair the enforceability of the other
         provisions of the Agreement. Furthermore, it is the Parties' intention
         to include, in order to replace any such void, illegal or unenforceable
         provision, a provision as similar in terms to such void, illegal or
         unenforceable provision as may be possible which at the same time is
         valid and enforceable.

8.4      ASSIGNMENT.

         The Purchaser may assign its rights and obligations hereunder to any
         person or company belonging or that might belong in the future to its
         group (as defined in Article 4 of the

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         Spanish Securities Market Act). Assignment to any other person or
         company will require the Sellers' prior written consent, through the
         Sellers' Representative, that will not be unreasonably withheld.
         This notwithstanding, in the event that the Purchaser merges into or
         becomes absorbed by any other company, the merging or absorbing entity
         will automatically become surrogated in the Purchaser's rights and
         obligations hereunder, with or without the Sellers' consent.

         The Sellers shall not be entitled to assign any right and obligation
         hereunder to anyone, except their credit rights under the present
         Agreement to the Total Purchase Price or any part thereof and, in
         particular, their right to acquire, if applicable, the UTi Worldwide
         Shares arising from Clause 2 above, which may be assigned to one or
         several entities chosen by them, as long as the assignees (hereinafter
         the "ASSIGNEES") comply with the United States Securities regulation
         for that purpose, with which the Sellers comply with, as they represent
         hereby, and that are the following:

         (i)      That UTi Worldwide's Shares will be acquired for investment
                  for each of the Sellers' or each of the Assignees' (as the
                  case may be) own account, not as a nominee or agent, and not
                  with a view to the resale or distribution of any part thereof
                  in violation of applicable U.S. state and federal securities
                  laws, and each Seller and each of Assignees, has no present
                  intention of selling, granting any participation in, or
                  otherwise distributing the same in violation of applicable
                  U.S. state and federal securities laws. No Seller and no
                  Assignee has any contract, undertaking, agreement or
                  arrangement with any person to sell, transfer or grant
                  participations to such person or to any third person, with
                  respect to any of the UTi Worldwide's Shares. No Seller and no
                  Assignee has been or will be formed for the specific purpose
                  of acquiring the UTi Worldwide's Shares.

         (ii)     Each Seller and each Assignee is an "accredited investor" as
                  defined in Rule 501(a) of Regulation D promulgated under the
                  Securities Act of 1933, as amended (the "Securities Act").
                  Thus, each Seller and each Assignee (1) has an individual net
                  worth, or joint net worth with such Seller's spouse (or such
                  Assignee's spouses, if an individual), at the time of this
                  Agreement, in excess of $1,000,000 or (2) had an individual
                  income in excess of US$200,000 in each of the two most recent
                  years or joint income with his/her spouse (as the case may be)
                  in excess of US$300,000 in each of those years and such Seller
                  or Assignee has a reasonable expectation of reaching the same
                  income level in the current year. Each Seller and each
                  Assignee, by reason of such Seller's or Assignee's or their
                  business and financial experience, has the capacity to protect
                  such Seller's or such Assignee's interests in connection with
                  the purchase of the UTi Worldwide's Shares. Each Seller and
                  each Assignee is capable of bearing the economic risks of such
                  Seller's or such Assignee's investment in the UTi Worldwide's
                  Shares. No Seller and no Assignee has received or seen any
                  advertisement or general solicitation with respect to the sale
                  of the UTi Worldwide's Shares.

         (iii)    Each Seller and each Assignees is aware of UTi Worldwide's
                  business affairs and financial condition and has acquired
                  sufficient information about UTi Worldwide to reach an
                  informed and knowledgeable decision to acquire the UTi
                  Worldwide's Shares. Each Seller and each Assignee has had
                  access to information about UTi Worldwide and has received
                  full and adequate information concerning UTi Worldwide.

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         The acquisition by each Seller or by each Assignee of the UTi
         Worldwide's Shares shall constitute a reconfirmation of the
         representations made by such Seller or such Assignee, as applicable, in
         the present Clause 8.4.

8.5      LANGUAGE.

         The Agreement is executed in English, thus being the governing language
         of the Agreement.

8.6      DAYS.

         For the purposes of the Agreement, and unless otherwise agreed herein,
         every term established in days in the present Agreement shall be
         understood to refer to business days; for the purpose of this
         agreement, every day of the year except Saturdays, Sundays, and
         holidays in the city of Madrid will be deemed business days.

         Should any term be expressly established in calendar days and should
         said term end on a non business day, the term shall be automatically
         extended to the next business day.

8.7      CONFIDENTIALITY OF THE AGREEMENT.

         The Parties agree to keep confidential the terms of the Agreement as
         well as all undertakings or obligations assumed hereunder and not to
         make any press release or other public disclosures related to the
         Agreement or other transactions contemplated hereby unless required by
         any applicable law or regulation (whether or not having the force of
         law) or by any order issued by an administrative or judicial authority.
         If any applicable law or regulation currently in force requires the
         issue or disclosure of any information concerning the Agreement, the
         Party compelled to make such issue or to disclose such information will
         give prior notice to the other Party of the need to do so.

         Notwithstanding the confidentiality obligation assumed by the Parties
         in the preceding paragraph, the Parties may reveal to their managers
         and employees those aspects of the Agreement that they deem necessary
         for its performance.

         Furthermore, either Party may disclose to third parties or to the
         public the mere fact that the Company and, indirectly, the Subsidiaries
         have been acquired by the Purchaser.

         The Parties agree to negotiate in good faith any press releases to be
         made in the context of this transaction, in order to present the
         transaction to the market in the most favourable way for SLI Group's
         interests.

9.       GUARANTEES.

9.1      SETTING-OFF.

         Without limitation of the unlimited liability of the Sellers hereunder,
         the Parties expressly agree that the Remaining Amount of the Initial
         Consideration, as well as the Amount Payable under any of the Tranches
         of the Total Purchase Price shall secure any liabilities of any or all
         of the Sellers arising hereunder due to Damages and any other amounts
         due hereunder, including, without limitation, the payment of the amount
         resulting from that

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         provided for under section 2.3.1.(c) above in the terms established
         below, as well as the payment of the penalties established under Clause
         6.4 and 7.4 above.

         For that purpose, if at the time any the Remaining Amount of the
         Initial Consideration or any of the Tranches Total Purchase Price
         becomes due, liquid and payable ("vencida, liquida y exigible")
         hereunder, there shall be due, liquid and payable debts under the
         present Agreement owed by the Sellers to the Purchaser (and, in
         particular, under Clauses 2.3, 4, 6 and 7.4) the amounts due, liquid
         and payable owed by the Sellers shall be automatically offset against
         the amounts due, liquid and payable of the corresponding Tranches owed
         by the Purchaser to the Sellers by virtue of Articles 1.195 et seq. of
         the Spanish Civil Code.

         Additionally, if at the time the Fourth and/or the Fifth Tranches
         become due hereunder, a Notice (as defined under Clause 5.1 above) has
         been delivered to the Sellers' Representative, the Purchaser's
         obligation to pay it shall be suspended in an amount equivalent to the
         Claimed Amount (as defined under Clause 5.1 above) until final
         resolution regarding the Claimed Amount. Notwithstanding the above, the
         Purchaser shall pay to the Sellers (by means of payment to the Sellers'
         Representative) interests at a nominal annual interest rate of 6 months
         EURIBOR plus 1.5% over the amount suspended of payment exceeding the
         amount of which the Sellers were declared to be liable by the final
         resolution regarding the Claimed Amount or by agreement between the
         Parties. Such interests shall accrue from the date on which the payment
         of said exceeding amount although being due, was suspended in
         accordance to the present Clause and until the date on which the same
         is effectively paid to the Sellers' Representative.

         The Parties agree that, if the Sellers present a first demand bank
         guarantee as the one attached hereto as ANNEX (9.1), for the Claimed
         Amount in favour of the Purchaser, the latter shall be obliged to
         immediately pay to the Sellers the part of the Remaining Amount of the
         Tranche that has been suspended as per the preceding paragraph, if
         applicable.

9.2      PURCHASER'S GUARANTEE.

         UTi Worldwide hereby guarantees in favour of the Sellers, jointly and
         severally ("solidariamente") with the Purchaser, its successors or
         assignees of the present Agreement, and expressly waiving any privilege
         of order and division ("beneficios de orden o excusion y division")
         that could correspond to it, if applicable, the full and punctual
         fulfilment of the obligations arising hereunder for the Purchaser,
         and/or its successors or assignees of the present Agreement, including,
         without limitation, the obligation relating the delivery of the Shares
         of UTi Worldwide according to that provided for under Clause 2 of this
         Agreement.

10.      EXPENSES AND TAXES.

         Unless otherwise established herein, each Party, the Sellers on one
         side and the Purchaser on the other side, will bear half of the costs
         and expenses arising from the formalisation of the present Agreement
         into public deed.

         Apart from the above and unless otherwise provided for in this
         Agreement, each Party will bear its own costs and expenses arising from
         the preparation, execution, performance and enforcement of this
         Agreement.

                                       56

<PAGE>

         The Parties will bear the taxes arising from the execution of the
         Agreements in accordance to Law.

11.      NOTICES.

11.1     NOTICES.

         Any notice or other communication required or permitted hereunder shall
         be in writing and shall be delivered by hand, telegraph, telex, or
         facsimile transmission or sent by certified, registered or express mail
         or courier (with acknowledgement of receipt), postage prepaid. Any such
         notice shall be deemed given upon delivery if delivered by hand,
         courier, telegraph, e-mail, telex or facsimile transmission or, if
         mailed by postal service, five (5) days after the date of dispatch to
         the addresses referred to in Clause 11.3 or certified mail, on the date
         and at the time recorded by the post office.

11.2     SELLERS' REPRESENTATIVES.

         For all the purposes of this Agreement, the Sellers appoint the Spanish
         company [...***...] (with tax identification code [...***...] and
         domicile at c/ General Davila n degrees 11, 28003 Madrid) as their
         representative (the "SELLERS' REPRESENTATIVE") vis-a-vis the Purchaser.
         The Sellers' Representative will be the addressee of any notice to be
         served upon all or any of the Sellers (or their successors or
         assignees) by the Purchaser pursuant to this Agreement; likewise, any
         notice to be served by all or any of the Sellers (or their successors
         or assignees) upon the Purchaser pursuant to this Agreement will be
         made through the Sellers' Representative.

         For the purposes of this Agreement, all the actions carried out by the
         Sellers' Representative shall be considered to have been jointly
         carried out by each and all of the Sellers.

         In case [...***...] is extinguished, the Sellers will decide among them
         who will act as the Sellers' Representative and will give written prior
         notice to the Purchaser of their decision. Up to the moment of said
         notification, all notices sent by the Purchaser to [...***...] will be
         valid even after the [...***...] is extinguished.

         Such representation will also apply with respect to any of the Sellers'
         successors or assignees.

11.3.    ADDRESSES.

         The Parties have designated the following addresses for the purpose of
         receiving notices hereunder:

[...***...]

11.4     CHANGE OF ADDRESSES.

         Any notice sent to the above addresses will be deemed to be received by
         the addressee,

Items indicated with "[...***...]" are subject to a Confidential Treatment
Request

                                       57

<PAGE>

         except if prior to the sending of such notice the addressee has
         notified the sender a change of address or facsimile number.

12.      GOVERNING LAW AND ARBITRATION.

12.1.    GOVERNING LAW.

         This Agreement will be governed by and construed in accordance with the
         laws of Spain ("Derecho comun espanol").

12.2.    ARBITRATION.

         All disputes out of or in connection with the present Agreement shall
         be finally settled under the Rules of Arbitration of the International
         Chamber of Commerce ("ICC") by one or more arbitrators appointed in
         accordance with said Rules. The arbitration shall be administered by
         the ICC in accordance with the aforementioned Rules.

         The arbitration shall be held in Madrid. The language of the
         arbitration shall be Spanish; however, the Parties may submit documents
         drafted in English to the arbitration procedure.

         The Parties undertake to comply with the arbitration award (including
         partial awards) granted by the arbitrators.

13.      ENTIRE AGREEMENT.

         This Agreement and its Annexes hereto represent all the agreements
         between the Parties and supersede all previous agreements and
         commitments between the Parties regarding the object of this Agreement
         and, in particular, leaves without effect the letter of intent executed
         by the Parties on September 24, 2001.

14.      FORMALISATION INTO PUBLIC DEED.

         The Parties hereto agree to execute this Agreement in one counterpart
         to one effect and to formalise the same into public deed immediately
         after its execution, before the Public Notary of Madrid, Mr. Rodrigo
         Tena Arregui.

IN WITNESS WHEREOF, each of the Parties hereto has caused this Agreement to be
executed in one (1) counterpart on its behalf in the place and as of the date
first above written.

UTi Spain, S.L.                            UTi Worldwide Inc
P.p.                                       P.p.

________________________                   ___________________________
Mr. Pedro Rueda Gonzalez                   Mr. Pedro Rueda Gonzalez

Mr. Carlos Luis Escario Pascual            Mr. Mariano Arturo Escario Pascual

                                       58

<PAGE>

______________________________             _______________________________

Mr. Jose Maria Escario Pascual             Mr Juan Ignacio Escario Pascual

______________________________             _______________________________

Mrs. natalia de la Vega Fernandez-         Mrs. Fabiola de la Vega Fernandez-
Lascoiti                                   Lascoiti

______________________________             _______________________________

Note: The Exhibits and Schedules have been omitted and are available upon
request.

                                       59

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