Document:

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                                                                    EXHIBIT 10.3

                               CESSION IN SECURITY

                                       By

           PYRAMID FREIGHT (PROPRIETARY) LIMITED, SOUTH AFRICA BRANCH

                                  in favour of

         THE SOUTH AFRICAN FINANCE PARTIES UNDER A FACILITIES AGREEMENT

                                                           (DENEYS | REITZ LOGO)
                                                                       ATTORNEYS

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                                TABLE OF CONTENTS

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<S>   <C>                                                                     <C>
1.    PARTIES..............................................................    1
2.    DEFINITIONS AND INTERPRETATION.......................................    1
3.    INTRODUCTION.........................................................    6
4.    SOUTH AFRICAN FACILITY AGENT.........................................    7
5.    CESSION AND PLEDGE...................................................    7
6.    WARRANTIES AND REPRESENTATIONS IN RESPECT OF THE RIGHTS
      AND INTERESTS........................................................    7
7.    REALISATION..........................................................    9
8.    APPROPRIATION OF PROCEEDS............................................   12
9.    DELIVERY OF DOCUMENTS EVIDENCING RIGHTS AND INTERESTS AND SECURITY
      AND OTHER OBLIGATIONS OF THE CEDENT .................................   12
10.   DURATION.............................................................   13
11.   ADDITIONAL SECURITY..................................................   13
12.   CEDENT BOUND NOTWITHSTANDING CERTAIN CIRCUMSTANCES...................   13
13.   FURTHER CESSIONS.....................................................   14
14.   RIGHTS AND INTERESTS TO BE KEPT FREE OF ENCUMBRANCES.................   14
15.   EXEMPTION FROM LIABILITY.............................................   14
16.   KEEPING, INSPECTION AND DELIVERY OF RECORDS..........................   15
17.   CERTIFICATE OF INDEBTEDNESS..........................................   15
18.   RENUNCIATION OF BENEFITS.............................................   16
19.   CESSION BY THE SOUTH AFRICAN FINANCE PARTIES.........................   16
20.   EFFECT OF SECURITY CESSION...........................................   16
21.   NOTICES AND DOMICILIA................................................   17
22.   GOVERNING LAW........................................................   18
</TABLE>

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                                                                         Page 2.

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<S>   <C>                                                                     <C>
23.   JURISDICTION.........................................................   18
24.   SEVERABILITY.........................................................   18
25.   GENERAL..............................................................   19
26.   COSTS................................................................   20
27.   COUNTERPARTS.........................................................   20
</TABLE>
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CESSION IN SECURITY

1.   PARTIES

1.1  The Parties to this Agreement are:

1.1.1 PYRAMID FREIGHT (PROPRIETARY) LIMITED, SOUTH AFRICA BRANCH; and

1.1.2 THE SOUTH AFRICAN FINANCE PARTIES UNDER A FACILITIES AGREEMENT.

1.2  The Parties agree as set out below.

2.   DEFINITIONS AND INTERPRETATION

2.1  The headings to the clauses of this Agreement are for reference purposes
     only and shall in no way govern or affect the interpretation of nor modify
     nor amplify the terms of this Agreement nor any clause hereof.

2.2  Terms used (but not defined) in this Agreement have the meaning given to
     them in the Facilities Agreement. In addition, unless the context dictates
     otherwise, the words and expressions set forth below shall bear the
     following meanings and cognate expressions shall bear corresponding
     meanings:

2.2.1 "AGREEMENT" means this Cession in Security;

2.2.2 "BORROWER" means each of the Borrowers under the Loan Agreements;

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2.2.3 "BUSINESS DAY" means any day other than a Saturday, Sunday or official
     public holiday in South Africa;

2.2.4 "CEDENT" means Pyramid Freight (Proprietary) Limited, South African Branch
     (Registration No. 1987/003687/10), a company duly incorporated as an
     external company in accordance with the laws of South Africa;

2.2.5 "DOCUMENTS OF TITLE" means the documents of title referred to in clause 9
     below;

2.2.6 "EFFECTIVE DATE" means the date of signature of the Facilities Agreement
     by all the parties thereto;

2.2.7 "FACILITIES AGREEMENT" means the written agreement entitled "Agreement"
     concluded or to be concluded between inter alia ABN Amro Bank N.V., LaSalle
     Bank National Association, UTi Worldwide Inc., the Cedent, the South
     African Facility Agent and certain Obligors (as defined therein) on or
     about the Signature Date;

2.2.8 "LOAN AGREEMENTS" means the Loan Agreements listed in Schedule 1;

2.2.9 "PARTIES" means the Cedent and the South African Facility Agent and
     "PARTY" shall, as the context requires, be a reference to either one of
     them;

2.2.10 "RIGHTS AND INTERESTS" means all of the Cedent's right, title and
     interest in, under and to the Loan Agreements;

2.2.11 "SECURED OBLIGATIONS" means any obligations or indebtedness (actual or
     contingent) from whatsoever cause and howsoever arising which the

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     Cedent may now or at any time hereafter owe or have towards the South
     African Finance Parties under the Finance Documents;

2.2.12 "SECURITY CESSION" means the cession in securitatem debiti granted by the
     Cedent in favour of the South African Finance Parties pursuant to this
     Agreement;

2.2.13 "SIGNATURE DATE" means the date of the signature of the Party last
     signing this Agreement in time;

2.2.14 "SOUTH AFRICAN FACILITY AGENT" means Nedbank Limited (Registration No.
     1951/000009/06) (acting through its Nedbank Capital Division), in its
     capacity as South African Facility Agent for and on behalf of the South
     African Finance Parties.

2.3  Any reference in this Agreement to:

2.3.1 a "CLAUSE" shall, subject to any contrary indication, be construed as a
     reference to a clause hereof;

2.3.2 "LAW" shall be construed as any law (including common or customary law),
     or statute, constitution, decree, judgment, treaty, regulation, directive,
     by-law, order or any other legislative measure of any government,
     supranational, local government, statutory or regulatory body or court.

2.4  Unless inconsistent with the context or save where the contrary is
     expressly indicated:

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2.4.1 if any provision in a definition is a substantive provision conferring
     rights or imposing obligations on any Party, notwithstanding that it
     appears only in this interpretation clause, effect shall be given to it as
     if it were a substantive provision of this Agreement;

2.4.2 when any number of days is prescribed in this Agreement, same shall be
     reckoned exclusively of the first and inclusively of the last day unless
     the last day falls on a day which is not a Business Day, in which case the
     last day shall be the next succeeding Business Day;

2.4.3 in the event that the day for payment of any amount due in terms of this
     Agreement should fall on a day which is not a Business Day, the relevant
     day for payment shall be the preceding Business Day;

2.4.4 in the event that the day for performance of any obligation to be
     performed in terms of this Agreement should fall on a day which is not a
     Business Day, the relevant day for performance shall be the subsequent
     Business Day;

2.4.5 any reference in this Agreement to an enactment is to that enactment as at
     the Signature Date and as amended or re-enacted from time to time;

2.4.6 any reference in this Agreement to this Agreement or any other agreement
     or document shall be construed as a reference to this Agreement or, as the
     case may be, such other agreement or document as same may have been, or may
     from time to time be, amended, varied novated or supplemented;

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2.4.7 unless otherwise explicitly stated, no provision of this Agreement
     constitutes a stipulation for the benefit of any person who is not a Party
     to this Agreement;

2.4.8 references to day/s, month/s or year/s shall be construed as Gregorian
     calendar day/s, month/s or year/s;

2.4.9 a reference to a Party includes that Party's successors-in-title and
     permitted assigns.

2.5  Unless inconsistent with the context, an expression which denotes:

2.5.1 any one gender includes the other genders;

2.5.2 a natural person includes an artificial person and vice versa; and

2.5.3 the singular includes the plural and vice versa.

2.6  Where any term is defined within the context of any particular clause in
     this Agreement, the term so defined, unless it is clear from the clause in
     question that the term so defined has limited application to the relevant
     clause, shall bear the same meaning as ascribed to it for all purposes in
     terms of this Agreement, notwithstanding that that term has not been
     defined in this interpretation clause.

2.7  The rule of construction that, in the event of ambiguity, the contract
     shall be interpreted against the Party responsible for the drafting
     thereof, shall not apply in the interpretation of this Agreement.

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2.8  The expiration or termination of this Agreement shall not affect such of
     the provisions of this Agreement as expressly provide that they will
     operate after any such expiration or termination or which of necessity must
     continue to have effect after such expiration or termination,
     notwithstanding that the clauses themselves do not expressly provide for
     this.

2.9  This Agreement shall be binding on and enforceable by the estates, heirs,
     executors, administrators, trustees, permitted assigns or liquidators of
     the Parties as fully and effectually as if they had signed this Agreement
     in the first instance and reference to any Party shall be deemed to include
     such Party's estate, heirs, executors, administrators, trustees, permitted
     assigns or liquidators, as the case may be.

2.10 The use of any expression in this Agreement covering a process available
     under South African law such as winding-up (without limitation eiusdem
     generis) shall, if any of the Parties to this Agreement is subject to the
     law of any other jurisdiction, be construed as including any equivalent or
     analogous proceedings under the law of such other jurisdiction.

2.11 Where figures are referred to in numerals and in words, if there is any
     conflict between the two, the words shall prevail.

3.   INTRODUCTION

3.1  The Cedent has entered into the Facilities Agreement with inter alia the
     South African Finance Parties.

3.2  As security for the due performance of its obligations to the South African
     Finance Parties under the Facilities Agreement, the Cedent has agreed to
     cede in

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     securitatem debiti to the South African Finance Parties jointly and
     severally all of the Rights and Interests.

4.   SOUTH AFRICAN FACILITY AGENT

     The South African Finance Parties have appointed the South African Facility
     Agent to act on their behalf for the purpose of all acts incidental to this
     Agreement, including, without limitation, the acceptance of the benefits of
     the Security Cession.

5.   CESSION AND PLEDGE

     With effect from the Effective Date, the Cedent hereby cedes in securitatem
     debiti to the South African Finance Parties jointly and severally the
     Rights and Interests as security for the due, proper and timeous payment
     and performance in full of all of the Secured Obligations, on the terms and
     conditions set out in this Agreement, which cession the South African
     Finance Parties hereby accept.

6.   WARRANTIES AND REPRESENTATIONS IN RESPECT OF THE RIGHTS AND INTERESTS

6.1  The Cedent represents and warrants to the South African Finance Parties, on
     each day that this Agreement is in force, that the Rights and Interests
     ceded to the South African Finance Parties under this Agreement have not
     been pledged, ceded (either outright or as security), discounted, factored,
     mortgaged under notarial bond or otherwise, or otherwise disposed of or
     hypothecated, nor are they subject to any other rights in favour of any
     person.

6.2  Should the Rights and Interests be subject to any right in breach of the
     representation and warranty in 6.1, then, without prejudice to any other
     rights

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     that the South African Finance Parties may have, any reversionary or other
     interests the Cedent may have in the Rights and Interests are also ceded to
     the South African Finance Parties and if the holder of that cession or
     right is entitled to possession of any of the documents referred to in
     clause 9 below, and it exercises that right, then the Cedent shall deliver
     photocopies of the documents to the South African Facility Agent, and as
     soon as the holder of that cession or right ceases to be entitled to
     possession or gives up possession, the Cedent shall deliver the relevant
     documents to the South African Facility Agent.

6.3  The Cedent represents and warrants on each day that this Agreement is in
     force that:

6.3.1 the Rights and Interests are and will be valid and all rights evidenced
     thereby or construed in respect thereof are and will be valid, legal and
     fully enforceable in all respects;

6.3.2 it is and will remain the sole and beneficial owner of all the Rights and
     Interests to the exclusion of all others.

6.4  It is recorded that the South African Finance Parties have entered into
     this Agreement on the strength of and relying on the warranties and
     representations in this clause 6 and in clause 22 (Representations) of the
     Facilities Agreement, each of which shall be deemed to be separate
     warranties and representations, given without prejudice to any other
     warranty or representation, and deemed to be material representations
     inducing the South African Finance Parties to enter into this Agreement.

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7.   REALISATION

7.1  On the occurrence of an Event of Default, the Cedent hereby irrevocably and
     unconditionally authorises and empowers the South African Facility Agent in
     rem suam and without any further authority or consent required from the
     Cedent, to:

7.1.1 exercise all the rights, powers and privileges attaching to the Rights and
     Interests;

7.1.2 receive payment, delivery and/or performance of the Rights and Interests
     in their own name;

7.1.3 sell or purchase or otherwise realise or transfer all or some of the
     Rights and Interests on such terms and in such manner as the South African
     Finance Parties may in their sole discretion decide;

7.1.4 institute any legal proceedings which the South African Finance Parties
     may deem necessary in connection with any sale, purchase or other transfer
     of any of the Rights and Interests by the South African Finance Parties or
     their nominee;

7.1.5 compromise any Right and Interest, grant any extension or other indulgence
     in respect of any such Right and Interest, or agree to vary the terms of
     any such Right and Interest, or realise any security or suretyship held for
     any such Right and Interest.

7.2  The Parties acknowledge and agree that:

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7.2.1 the Secured Obligations are obligations of a commercial nature;

7.2.2 the application of the provisions of clause 7.1 will confer upon the South
     African Finance Parties certain procedural advantages which, in the light
     of the commercial nature of the transaction secured by the cession are
     fair, reasonable and necessary to ensure that the South African Finance
     Parties do not suffer unfair commercial prejudice.

7.3  The provisions of this clause 7.1 are without prejudice to all other rights
     and remedies which the South African Finance Parties may have at law and
     shall be severable and divisible from the other terms and conditions of
     this Agreement if same are found to be invalid or unenforceable. In this
     regard the Parties record that they would have concluded a cession and
     pledge on all the other terms of this Agreement even if the parate executie
     terms included herein were not agreed upon and accordingly even if the
     parate executie terms are found to be invalid or unenforceable, the
     remaining provisions of this Agreement are intended to remain of full force
     and effect.

7.4  On the South African Finance Parties taking any action in terms of clause
     7.1 or otherwise as required by the South African Finance Parties, the
     Cedent shall on demand by the South African Facility Agent:

7.4.1 in writing notify all persons required by the South African Finance
     Parties that payment for, delivery of or performance in respect of the
     Rights and Interests must be made to the South African Facility Agent and
     that payment, delivery or performance to the Cedent or to anyone else will
     not constitute valid payment, delivery or performance, and the South
     African Facility Agent shall be entitled to do likewise. The Cedent shall
     on

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     demand by the South African Facility Agent provide proof that such written
     notification has been duly given;

7.4.2 refuse to accept any payment, delivery or performance tendered in respect
     of any of the Rights and Interests and order that such payment, delivery or
     performance be tendered through the South African Facility Agent;

7.4.3 without charge, permit the South African Facility Agent or anyone
     nominated by the South African Facility Agent to have access to and to work
     at the Cedent's premises and to use the Cedent's facilities and personnel
     for the purposes of enforcing the South African Finance Parties's rights
     under this Agreement;

7.4.4 if the Cedent fails to promptly fulfil the Secured Obligations, the South
     African Finance Parties may cause such obligations to be fulfilled and
     recover on demand from the Cedent any expenses incurred by the South
     African Finance Parties together with a reasonable charge;

7.4.5 at its own cost, carry out any directions the South African Finance
     Parties may give in regard to the realisation of the Rights and Interests
     and sign any document or do any other act necessary to vest the Rights and
     Interests in the South African Finance Parties or otherwise necessary to
     perfect the cession and pledge contemplated in this Agreement.

7.5  Any amount realised by the South African Finance Parties, on the
     realisation of the Rights and Interests in terms of this clause 7, which is
     in excess of the amount owing by the Cedent to the South African Finance
     Parties in respect of the Secured Obligations, shall be repayable to the
     Cedent within 15 (fifteen)

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     Business Days after the complete, unconditional and irrevocable fulfilment
     of all the Secured Obligations.

8.   APPROPRIATION OF PROCEEDS

     The South African Finance Parties may appropriate all amounts received
     pursuant to the collection, sale or other realisation of the Rights and
     Interests as the South African Finance Parties in their sole discretion see
     fit.

9.   DELIVERY OF DOCUMENTS EVIDENCING RIGHTS AND INTERESTS AND SECURITY AND
     OTHER OBLIGATIONS OF THE CEDENT

9.1  On the Signature Date, the Cedent shall deliver to the South African
     Facility Agent a written notice and acknowledgement substantially in the
     form of Schedule 2 hereto notifying each Borrower of the Security Cession
     and signed by such Borrower to acknowledge and consent to the Security
     Cession.

9.2  When the Rights and Interests are evidenced by a document or when the
     Cedent holds security for any obligation in respect of the Rights and
     Interests and the security is evidenced by a document, physical object or
     electronic format, the Cedent shall immediately deliver a certified copy of
     that document, physical object or electronic format to the South African
     Facility Agent.

9.3  The Cedent shall generally do everything that may be required by the South
     African Finance Parties for the purposes of and to give effect to this
     Agreement, failing which the South African Finance Parties may, if
     possible, attend thereto and recover on demand from the Cedent any expenses
     incurred as well as a reasonable charge.

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10.  DURATION

     This Agreement is a continuing covering security and will terminate only
     upon the unconditional and irrevocable fulfilment of all the Secured
     Obligations. In particular, this Agreement shall not terminate by reason
     solely of the fact that there may at any time be no or reduced obligations
     or debts owing by the Cedent to the South African Finance Parties.

11.  ADDITIONAL SECURITY

     This Agreement is in addition to and not in substitution for any other
     security held or hereafter to be held by the South African Finance Parties
     from the Cedent or any third party in connection with the Facilities
     Agreement or otherwise, and the South African Finance Parties shall,
     without prejudice to their rights hereunder, be entitled to release any
     such additional security held by them.

12.  CEDENT BOUND NOTWITHSTANDING CERTAIN CIRCUMSTANCES

12.1 The Cedent agrees that on signature hereof it will be bound in terms of
     this Agreement to the full extent thereof, despite the fact that:

12.1.1 any intended additional security from the Cedent for the debts secured by
     this Agreement may not be obtained or protected or may be released or may
     cease to be held for any other reason;

12.1.2 the South African Finance Parties and the Cedent may agree a variation or
     novation of the Facilities Agreement;

12.1.3 the South African Finance Parties may grant any indulgences to the

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     Cedent or may not exercise any one or more of its rights hereunder or under
     the Facilities Agreement either timeously or at all; and

12.1.4 any other fact or circumstance may arise (including any act or omission
     by the South African Finance Parties) on which the Cedent might otherwise
     be able to rely on a defence based on prejudice, waiver or estoppel.

12.2 If the Cedent suffers any loss arising from any of the facts,
     circumstances, acts or omissions referred to above, the Cedent will have no
     claim against the South African Finance Parties in respect thereof.

13.  FURTHER CESSIONS

     The Cedent shall not grant any further cessions, pledges, mortgages,
     hypothecation, disposals or any other form of security or encumbrance in
     respect of its Rights and Interests.

14.  RIGHTS AND INTERESTS TO BE KEPT FREE OF ENCUMBRANCES

     The Cedent shall at all times keep the Rights and Interests free of
     judicial attachments, notarial bonds and other encumbrances, and shall not
     prejudice, compromise, grant any indulgences or agree to vary the terms of
     any document creating the Rights and Interests or release any security held
     in respect of the Rights and Interests without the prior written consent of
     the South African Finance Parties.

15.  EXEMPTION FROM LIABILITY

     The South African Finance Parties and their officers, trustees, agents,
     beneficiaries, employees and advisors shall not be liable for any loss or
     damage, whether direct,

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     indirect, consequential or otherwise, suffered by the Cedent arising from
     any cause in connection with this Agreement, whether the loss or damage
     results from breach of contract (whether total, fundamental or otherwise),
     delict, negligence or any other cause and whether this Agreement has been
     terminated or not, other than as a result of the South African Finance
     Parties's gross negligence or wilful misconduct.

16.  KEEPING, INSPECTION AND DELIVERY OF RECORDS

16.1 The Cedent shall at all times keep up-to-date records of its Rights and
     Interests ceded as security to the South African Finance Parties and shall
     comply with any reasonable directions the South African Facility Agent may
     give in regard to the keeping of those records.

16.2 The South African Facility Agent or anyone authorised by the South African
     Facility Agent may at any time and on reasonable notice inspect any of the
     Cedent's books of account and other records, including books of account and
     records in the possession of a third party.

16.3 If the South African Facility Agent at any time so requests, the Cedent
     shall at its own cost deliver to the South African Facility Agent certified
     copies (at the South African Finance Parties' option) of any of the books
     and records.

17.  CERTIFICATE OF INDEBTEDNESS

     A certificate signed by any officer of the South African Facility Agent
     whose authority or appointment need not be proved, reflecting:

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17.1 the amount owing by the Cedent to the South African Finance Parties in
     respect of the Secured Obligations and the due date for payment of such
     amounts; and/or

17.2 the amount(s) realised by the realisation or sale of all or any of the
     Cedent's Rights and Interests and the date(s) of realisation thereof;

     will be prima facie evidence of the contents thereof.

18.  RENUNCIATION OF BENEFITS

     The Cedent hereby renounces the legal benefits and exceptions of excussion,
     division, non numeratae pecuniae, non causa debiti, revision of accounts
     and errore calculi, the Cedent declaring itself to be fully acquainted with
     the full meaning and effect of this renunciation.

19.  CESSION BY THE SOUTH AFRICAN FINANCE PARTIES

     The South African Finance Parties shall be entitled to cede, transfer or
     assign all or any part of its rights and/or delegate all or any part of its
     obligations under this Agreement to any third party in accordance with the
     provisions of the Facilities Agreement without the consent of the Cedent.
     To the extent that any splitting of claims may arise against the Cedent as
     a consequence of any such cession transfer, assignment and/or delegation,
     the Cedent hereby consents to such splitting of claims.

20.  EFFECT OF SECURITY CESSION

20.1 It is specifically recorded and agreed that the Security Cession as set out
     herein is intended to secure the entire indebtedness of the Cedent to the
     South African

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     Finance Parties jointly and severally arising from whatsoever cause and
     howsoever arising, including interest and/or fees and costs payable arising
     in respect thereof, on the basis that any of the South African Finance
     Parties shall, subject to the terms of the Facilities Agreement, be
     entitled to exercise its rights in terms of this Security Cession
     independently of any other South African Finance Party, and without
     recourse to any other South African Finance Party, in satisfaction of the
     claims of such South African Finance Party against the Cedent arising as
     set out in this Agreement. This Security Cession therefore secures the
     indebtedness of the Cedent to each of the South African Finance Parties
     independently and for 100% (one hundred percent) thereof.

20.2 The provisions of this Agreement which confer benefits upon the South
     African Finance Parties shall constitute stipulations for the benefit of
     any person(s) becoming a South African Finance Party in accordance with the
     provisions of the Facilities Agreement, capable of acceptance at any time.
     To the extent that this results in a splitting of claims against the
     Cedent, the Cedent hereby consents to such splitting of claims.

21.  NOTICES AND DOMICILIA

21.1 NOTICES

     The provisions of clause 40 (Notices) of the Facilities Agreement shall
     apply mutatis mutandis to this Agreement.

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21.2 DOMICILIA

21.2.1 Each of the Parties chooses its physical address chosen pursuant to
     clause 21.1 as its domicilium citandi et executandi at which documents in
     legal proceedings in connection with this Agreement may be served.

21.2.2 Either Party may by written notice to the other Party change its
     domicilium from time to time to another address, not being a post office
     box or a poste restante; provided that any such change shall only be
     effective on the fourteenth day after receipt or deemed receipt of the
     notice by the other Party pursuant to clause 21.1, as the case may be.

22.  GOVERNING LAW

     The entire provisions of this Agreement shall be governed by and construed
     in accordance with the laws of South Africa.

23.  JURISDICTION

     The Parties hereby irrevocably and unconditionally consent to the
     non-exclusive jurisdiction of the Witwatersrand Local Division of the High
     Court of South Africa (or any successor to that division) in regard to all
     matters arising from this Agreement.

24.  SEVERABILITY

     Each provision in this Agreement is severable from all others,
     notwithstanding the manner in which they may be linked together or grouped
     grammatically, and if in terms of any judgment or order, any provision,
     phrase, sentence, paragraph or clause is found to be defective or
     unenforceable for any reason, the remaining provisions,

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     phrases, sentences, paragraphs and clauses shall nevertheless continue to
     be of full force. In particular, and without limiting the generality of the
     aforegoing, the Parties hereto acknowledge their intention to continue to
     be bound by this Agreement notwithstanding that any provision may be found
     to be unenforceable or void or voidable, in which event the provision
     concerned shall be severed from the other provisions, each of which shall
     continue to be of full force.

25.  GENERAL

25.1 This Agreement and the Facilities Agreement constitute the sole record of
     the agreement between the Parties in regard to the subject matter thereof.

25.2 This Agreement is a Finance Document.

25.3 No Party shall be bound by any express or implied term, representation,
     warranty, promise or the like, not recorded herein.

25.4 No addition to, variation or consensual cancellation of this Agreement and
     no extension of time, waiver or relaxation or suspension of any of the
     provisions or terms of this Agreement shall be of any force or effect
     unless in writing and signed by or on behalf of all the Parties.

25.5 No latitude, extension of time or other indulgence which may be given or
     allowed by any Party to any other Party in respect of the performance of
     any obligation hereunder or enforcement of any right arising from this
     Agreement and no single or partial exercise of any right by any Party shall
     under any circumstances be construed to be an implied consent by such Party
     or operate as a waiver or a novation of, or otherwise affect any of that
     Party's rights in terms of or arising from this Agreement or estop such
     Party from enforcing, at any

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     time and without notice, strict and punctual compliance with each and every
     provision or term hereof.

25.6 The Parties undertake at all times to do all such things, to perform all
     such acts and to take all such steps and to procure the doing of all such
     things, the performance of all such actions and the taking of all such
     steps as may be open to them and necessary for or incidental to the putting
     into effect or maintenance of the terms, conditions and import of this
     Agreement.

25.7 Save as is specifically provided in this Agreement, no Party shall be
     entitled to cede or delegate any of its rights or obligations under this
     Agreement without the prior written consent of the other Parties affected
     by such transfer of rights or obligations, which consent may not
     unreasonably be withheld or delayed.

26.  COSTS

     All costs relating to this Agreement and to the enforcement by the Parties
     of their rights hereunder shall be paid in accordance with the provisions
     of the Facilities Agreement.

27.  COUNTERPARTS

     This Agreement may be executed in one or more counterparts, each of which
     shall be deemed to be an original of the Party or Parties executing the
     same and all of which together will be deemed to constitute one and the
     same agreement.

                                       20
<PAGE>

SIGNED at __________________ on this the 13th day of July 2006.

                                         For and on behalf of
                                         PYRAMID FREIGHT (PROPRIETARY) LIMITED,
                                         SOUTH AFRICA BRANCH

                                         /s/ Gerhard Bosua
                                         ---------------------------------------
                                         Name: Gerhard Bosua
                                         Capacity: Authorized Signatory
                                         Who warrants his authority hereto

We, the undersigned NEDBANK LIMITED, in our capacity as South African Facility
Agent on behalf of the South African Finance Parties, hereby accept the benefits
of this Agreement on behalf of the South African Finance Parties.

SIGNED at __________________ on this the 13th day of July 2006.

                                         For and on behalf of
                                         NEDBANK LIMITED (AS SOUTH AFRICAN
                                         FACILITY AGENT)

                                         /s/ M.R. Weston
                                         ---------------------------------------
                                         Name: M.R. Weston
                                         Capacity: Authorized Signatory
                                         Who warrants his authority heretoEX-10.10

 

Exhibit 10.10

Federal Home Loan Banks P&I Funding and Contingency Plan Agreement

This Federal Home Loan Banks P&I Funding and Contingency Plan Agreement (“Agreement”) is
entered into as of this 20th day of July, 2006 (the “Effective Date”) by and
among the Office of Finance (the “OF”) and each of
the Federal Home Loan Banks (“Banks”).
The OF and the Banks are sometimes referred to herein individually as a “party” and collectively as
the “parties.” All references in this Agreement to any of the parties to this Agreement include
such party or any successor entity.

WHEREAS, the Banks are jointly and severally liable for the payment of consolidated obligations
issued pursuant to Section 11 of the Federal Home Loan Bank Act, as amended (12 U.S.C. §1431)
(“COs”);

WHEREAS, the OF has the authority under 12 CFR § 985.6(a) to issue and service (including making
timely payments on principal and interest due, subject to 12 CFR §§ 966.8 and 966.9) consolidated
obligations issued on behalf of the Banks pursuant to, and in accordance with, the policies and
procedures established by the OF Board of Directors; and

WHEREAS, the Federal Reserve Board has announced a change in its Policy Statement on Payments
System Risk (as the same may be amended, modified or supplemented, the “PSR Policy”) that
will cause the PSR Policy to be applied to the FHLBanks beginning July 20, 2006; and

WHEREAS, the OF and a task force of the Debt Management Sub-Committee of the Financial Officers’
Conference of the Banks have developed P&I Funding and Contingency Plan Procedures (as the same may
be amended, modified, or supplemented, the “Procedures”) to deal with the possibility that
a Bank may not make a payment of debt service on COs to the OF on a timely basis following the
application of the PSR Policy to the Banks; and

WHEREAS, the OF Board of Directors has approved the Procedures and determined that the OF should
obtain the written agreement of the Banks on several matters relating to the Procedures, which
matters are included in this Agreement; and

WHEREAS, the Federal Housing Finance Board (the “Finance Board”) has supported the adoption
of the Procedures by issuing the waiver attached hereto as Exhibit A (as the same may be
amended, modified or supplemented, the “Waiver”) of its prohibition of the direct placement of COs
with FHLBanks contained in 12 CFR § 966.8(c), to accommodate the implementation of the Procedures,
based in part on its view that timely payment of all principal and interest to investors in COs is
essential to maintain the confidence of investors and potential investors in COs; and

WHEREAS, the Waiver provides that the interest rate paid by the Bank that has not remitted all the
funds to the OF by the agreed upon deadline on the CO issued pursuant to the Waiver shall be at
least 500 basis points above the federal funds rate.

 

 

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

     1. Authorization of Issuance of COs

Each Bank agrees that if it is a “Delinquent Bank” (as defined below), the OF may cause one or more
overnight “Plan COs” (as defined below) to be issued on behalf of the Delinquent Bank for the
benefit of one or more “Contingency Banks” (as defined below), each such Plan CO to be issued to a
Contingency Bank in the principal amount equal to the amount of funds provided by that Contingency
Bank on behalf of that Delinquent Bank, to mature on the following Business Day (as defined below),
and to bear interest on such principal amount from the date of issuance to but not including that
maturity date, due and payable on that maturity date, at the rate per annum (the “Base
Cost”) equal to (a) the overnight fed funds quote obtained by the OF from a recognized funds
broker to be paid for any available funds delivered to the OF by a Contingency Bank or withheld
from its “positive net position” as described in Section 2 of this Agreement or (b) the actual cost
if funds are purchased by that Contingency Bank in the open market and delivered to the OF. All
such interest shall be calculated on an actual/360 basis based on the number of days the Plan CO is
outstanding, including non-Business Days. The Delinquent Bank shall also be obligated to pay
“Additional Interest” as set forth in Section 3 of this Agreement, all or a portion of which will
satisfy the obligation of the Delinquent Bank under the Waiver to pay an interest rate on the Plan
CO that is at least 500 basis points above the federal funds rate.

The OF shall issue a Plan CO in physical form under those circumstances and apply the proceeds
therefrom on behalf of that Delinquent Bank as provided for in the Procedures. Each Bank hereby
authorizes the OF, and the OF hereby agrees, to hold any Plan COs issued as agent for each such
Bank when it acts as a Contingency Bank.

For purposes of this Agreement,

a “Delinquent Bank” means a Bank that misses any funding time specified in the
Procedures, including a funding time for the repayment of Plan COs; and

a “Plan CO” means a CO issued on behalf of a Delinquent Bank to one or more
Contingency Banks. For the avoidance of doubt, although a Delinquent Bank is primarily
responsible for repayment of a Plan CO issued on its behalf, each Plan CO is the joint and
several obligation of all 12 Banks; and

a “Contingency Bank” means any Bank that provides funds for a Delinquent Bank
under the Procedures; and

“Business Day” means any day other than (i) a Saturday, (ii) a Sunday or (iii) any day on
which banking institutions in New York City are authorized or required by law or executive
order to close.

2

 

     2. Use of Proceeds to Purchase COs

Each Bank shall be obligated to provide and authorizes the OF to apply any “positive net position”
(i.e., the amount by which end-of-day proceeds received by a Bank from sale of COs on one day
exceed payments by that Bank on COs on the same day) of that Bank to the purchase of a Plan CO
issued on behalf of a Delinquent Bank, thereby causing such Bank to become a Contingency Bank,
based on the priority established in the matrix attached hereto as Exhibit B (“Contingency Funding Matrix”) and otherwise in accordance with the Procedures.

     3. Additional Interest

Each Bank
agrees that if it is a Delinquent Bank, then it will pay an amount
(“Additional
Interest”) in accordance with the following schedule in addition to interest equal to the Base
Cost:

1st offense — 500 basis points per annum of the delinquent amount

2nd offense — 750 basis points per annum of the delinquent amount

3rd and

subsequent offense  — 1,000 basis points per annum of the delinquent amount

The Additional Interest will be calculated on an actual/360 basis based on the actual number of
days the related Plan CO is outstanding, including non-Business Days, from the date of issuance to
but excluding the stated maturity date. For purposes of this calculation, Additional Interest
attributable to a delinquent amount that is not related to the principal amount of a Plan CO (i.e.,
because the Delinquent Bank pays all or a portion of its delinquent amount after a deadline but
before a Contingency Bank is entitled to have a Plan CO issued for its benefit on behalf of the
Delinquent Bank with respect to such amount) will be assessed on that delinquent amount assuming
that a Plan CO was issued with a principal amount equal to that delinquent amount and that the Plan
CO would mature on the next Business Day.

For purposes of calculating Additional Interest, each different time deadline established under the
Procedures will accrue its own separate count of the number of offenses, so that a Delinquent Bank
will pay a separate amount for each such time deadline missed, and the step-up in Additional
Interest for the occurrence of a particular offense will only be measured with regard to offenses
that have occurred within the 36-month period ending on the date of that particular offense (the
“Delinquency Measurement Period”). For example, if a Delinquent Bank twice misses a morning
deadline and once misses an afternoon deadline, all as established under the Procedures, within a
Delinquency Measurement Period, then the Delinquent Bank shall have been subject to Additional
Interest of 500 basis points with respect to the first morning deadline missed, Additional Interest
of 750 basis points with respect to the second morning deadline missed, and Additional Interest of
500 basis points with respect to the afternoon deadline missed.

Each Bank agrees that (i) for each Plan CO issued, the first 100 basis points of the Additional
Interest shall be assessed against the Delinquent Bank for the benefit of the Contingency Bank that
purchased the Plan CO as provided in Section 1 of this

3

 

Agreement, and the balance of the Additional Interest assessed against the Delinquent Bank
(i.e., 400 basis points, 650 basis points, or 900 basis points) will be divided equally among the
Banks (including the Contingency Banks) that are not Delinquent Banks with respect to the same
funding time specified in the Procedures and (ii) for Additional Interest attributable to a
delinquent amount that is not related to a Plan CO, the Additional Interest will be divided equally
among the Banks that are not Delinquent Banks with respect to the same funding time specified in
the Procedures. Each of the Banks and the OF agree that any Additional Interest will be allocated
and paid through the monthly assessment from the OF, and that the Additional Interest is not the
joint and several obligation of the Banks.

Notwithstanding anything in this Section 3 or Section 7(a) or (b) of this Agreement to the
contrary, and subject to Sections 5(a) and (d) below, each Bank agrees that assessment of the
Additional Interest shall be subject to the appellate process contained in the Procedures and that
the OF shall have the authority to waive all or any portion of the Additional Interest or excuse
the occurrence of any offense as provided for in the Procedures. To the extent permitted under the
Waiver, the assessment of Additional Interest shall be suspended pending completion of the
appellate process.

     4. Reallocation of COs

Each Bank agrees that if a Bank is a Delinquent Bank, with respect to each Plan CO issued to
a Contingency Bank on behalf of a Delinquent Bank, each Bank that is a “Reallocation Bank” (as
defined below) shall immediately have the obligation to purchase that Reallocation Bank’s “Pro Rata
Share” (as defined below) of such Plan CO from that Contingency Bank, with such obligation to
purchase being effective immediately upon the issuance of the Plan CO, subject to the proviso in
the following paragraph.

Each Bank agrees that if it is a Reallocation Bank, it will wire to the Contingency Bank that holds
a Plan CO an amount equal to (i) its Pro Rata Share of the principal amount of that Plan CO, plus
(ii) accrued interest thereon from the date of issue of the Plan CO until its stated maturity date
equal to the Base Cost, not later than 1:00 p.m., Eastern Time, on the second Business Day
following the date of issuance of that Plan CO; provided, however, that such Reallocation
Bank shall not be required to wire funds to the extent that it determines in good faith such
purchase will violate any rule, regulation or binding policy of the Finance Board, and under those
circumstances such Reallocation Bank shall be excused from its obligation to make such payment to
the Contingency Bank, but not from its joint and several obligation, with respect to such Plan CO.
The wire shall be sent to the account identified by the Contingency Bank for that purpose, and time
is of the essence with respect to the wire. In the event there are multiple Plan COs issued on a
particular date, Reallocation Banks shall not favor any Contingency Bank over any other Contingency
Bank, and shall purchase its Pro Rata Shares of such Plan COs on a proportional basis. To the
extent that a Plan CO is repaid prior to the settlement of a Reallocation Bank’s obligations to
purchase its Pro Rata Share, that Pro Rata Share shall be reduced proportionally by the amount so repaid.

4

 

Each Contingency Bank shall promptly notify the OF of its receipt of payment of the Pro Rata
Share amounts from the Reallocation Banks. Promptly following receipt of that notice and
confirmation of the payment from the Reallocation Banks, the OF shall cancel such original
outstanding physical Plan CO and shall reissue replacement physical Plan COs with the principal
amounts representing the respective Pro Rata Shares of the Reallocation Banks that have paid for
their purchase of the Plan CO, along with a Plan CO representing the balance of the principal
amount of the original Plan CO that is retained by the Contingency Bank. Each such reissued Plan CO
remains a “Plan CO” for purposes of this Agreement and the Procedures, but a Reallocation Bank will
not be treated as the Contingency Bank with respect thereto. Each Bank hereby authorizes the OF,
and the OF hereby agrees, to hold any such reissued Plan COs payable to such Bank as agent for such
Bank’s benefit, and to pay debt service on such CO to the record owner of such Plan CO as reflected
on the OF’s books following reissuance.

For purposes of this Section,

          a “Reallocation Bank” with respect to a Plan CO means each Bank other than (i) any
Delinquent Bank on behalf of which that Plan CO or any other Plan CO was originally issued on the
same date, and (ii) the Contingency Bank that owns that Plan CO;

          “Pro Rata Share” of a Reallocation Bank means a fraction, the numerator of which is the total
amount of outstanding COs for which the Reallocation Bank is primary obligor as of the Most Recent
Measurement Date, and the denominator of which is the total amount of outstanding COs for which all
Reallocation Banks and the Contingency Bank are primary obligor as of the Most Recent Measurement
Date; and

          “Most Recent Measurement Date” means the most recent month-end data calculated by the
OF and available on the OF’s Debt Servicing System, which amount is not adjusted for inter-bank
ownership of COs.

The Banks agree that the provisions of this Section 4 shall not affect the allocation of Additional
Interest pursuant to the fourth paragraph of Section 3 of this Agreement, including without
limitation the allocation of the first 100 basis points of Additional Interest pursuant to such
paragraph to a Contingency Bank that acquired the Plan CO at original issuance.

One or more Contingency Banks and Reallocation Banks may agree among themselves to net their
payments to each other that are due as a result of multiple Plan COs having been issued and
subject to reallocation on the same date.

Each Bank agrees that the formula for determining the Pro Rata Shares has been agreed to by the
Banks solely for the purpose of this Agreement and is not intended to represent an agreed upon
allocation of risk or responsibility for any other purpose.

The provisions of this Section 4 shall survive any termination of this Agreement with respect to
any Plan CO issued prior to such termination.

5

 

     5. Acknowledgements

Each Bank acknowledges and agrees that:

	 	(a)	 	the Base Cost plus the Additional Interest assessed against a Delinquent Bank
may not be lower than the amount required to be paid by the Delinquent
Bank under the Waiver;
	 
	 	(b)	 	the OF shall be required to provide any notice of issuance of a Plan CO
hereunder to the Office of Supervision of the Finance Board, which notice is
presently required by the Waiver to be provided no later than 5:00 P.M.
eastern time on the date of the issuance of the Plan CO;
	 
	 	(c)	 	its agreement in Section 1 of this Agreement with respect to any Plan CO
issued on its behalf as a Delinquent Bank satisfies the regulatory requirement
contained in 12 CFR § 966.8(b) that provides that COs may be offered for sale
only in the event Banks are committed to take the proceeds;
	 
	 	(d)	 	the appellate process referred to in the last paragraph of Section 3 of this
Agreement will be subject to the terms of the Waiver;
	 
	 	(e)	 	no Bank will be entitled to a Plan CO in the amount of any positive net
position except to the extent its end-of-day positive net position is used to
purchase a Plan CO; and
	 
	 	(f)	 	the Additional Interest will be calculated based on the principal amount of a
Plan CO, as well as any other delinquent amount paid late to the OF by the
Delinquent Bank.

     6. Representations and Warranties of the Parties

As of the date of its execution and delivery of this Agreement, each party represents and warrants
to the other parties that:

          (a) This Agreement is within such party’s powers and has been duly
authorized by all necessary corporate action.

          (b) This Agreement has been duly executed and delivered by such party and
constitutes a legal, valid and binding obligation of such party enforceable in accordance
with its terms.

     7. Termination and Amendments

          (a) This Agreement will be deemed to be effective as of the Effective Date and will
continue in full force until such time as (i) at least two-thirds (2/3) of the Banks agree to its
termination, (ii) the Finance Board rescinds the Waiver or (iii) the Finance Board takes any
action, including without limitation modification of the Waiver, that

6

 

makes compliance by the OF or the Banks with this Agreement not commercially reasonable.

     (b) This Agreement may be amended only in a signed writing executed and delivered by all of
the Banks and the OF. Any such amendment shall be effective as of the effective date set forth in
the amendment.

     (c) This Agreement shall also be subject to termination at 11:59 p.m. on December 31, 2008, and
at 11:59 p.m. on each third December 31 thereafter (e.g. December 31, 2011, December 31, 2014, etc.)
(“Expiration Time”) if at least one-third (1/3) of the Banks provide notice of their
respective election to terminate to each other Bank and the OF at least one year prior to the
Expiration Time. Such notice shall identify with reasonable specificity the reason or reasons such
Bank wishes to terminate the Agreement at the next Expiration Time. The Banks and the OF agree to
negotiate in good faith toward the resolution of the issues raised in the notices of termination
with a view of reaching agreement on a new agreement at or prior to the Expiration Time.

     8. Successors and Assigns

This Agreement shall be binding upon and inure to the benefit of the successors and permitted and
authorized assigns of each Bank and the OF.

     9. Governing Law; Severability

This Agreement shall be governed by the statutory and common law of the United States and, to the
extent federal law incorporates or defers to state law, the laws (exclusive of the choice of law
provisions) of the State of New York. Any term or provision of this Agreement that is determined to
be invalid or unenforceable shall be ineffective to the extent of such invalidity or
unenforceability without rendering invalid or unenforceable the remaining terms and provisions of
this Agreement.

     10. Notice

Except for any notices of payment delivered pursuant to Section 4 of this Agreement, which shall be
delivered promptly either telephonically or electronically, any notice required or permitted to be
given or made under this Agreement, including a notice to effect a change in a party’s address for
notice, must be in writing and addressed to the other parties at the addresses of such parties set
forth beneath their signatures below, and will be deemed to be properly given or made on the
earliest of (i) actual delivery, (ii) two (2) Business Days after being sent, with delivery charges
paid by the sending party, by a nationally recognized commercial courier service for delivery on
the next Business Day, and (iii) three (3) Business Days after being sent through the United States
Postal Service, certified mail, return receipt requested, postage prepaid.

7

 

     11. Counterparts

This Agreement may be executed in multiple counterparts, each of which shall be deemed to be
an original and all of which together shall constitute one and the same agreement.

     12. Entire Agreement; Conflicts

This Agreement constitutes the entire agreement of the parties and supersedes all prior
understandings or agreements, oral or written, among the parties on the subjects addressed in this
Agreement. Nothing in this Agreement, including without limitation the right of Banks to terminate
it or the right of Banks to withhold approval of an amendment, shall be construed to (i) conflict
with or limit the authority of the OF to carry out its duties pursuant to law, including without
limitation Federal Housing Finance Board regulations; or (ii) alter the Banks’ joint and several
liability on COs, including the Plan COs issued hereunder. This Agreement does not constitute “an
agreement to obtain financial assistance to meet a Bank’s current obligations... due during this
quarter”, a “consolidated obligation payment plan,” an “inter-Bank assistance agreement” or “a
payment on any [CO] on behalf of another Bank” as these terms are used in 12 CFR § 966.9. If any
applicable provision contained in the Procedures irreconcilably conflicts with any express
provision of this Agreement, then such express provision of this Agreement shall control.

     13. No Third Party Rights Created

Nothing in this Agreement shall create or be deemed to create any rights in any third party.

     14. Suspension of Obligations

If the Finance Board issues any order or enters into or amends any written agreement, including
without limitation a written agreement within the meaning of 12 USC § 1422b(a)(5), that prohibits
or prevents a party to this Agreement from either being a party to this Agreement, or from
performing its obligations under this Agreement, after the Effective Date, then that party’s duty
to perform its obligations under this Agreement shall be suspended while such order by or agreement
with the Finance Board is in effect.

[Signature Page to Follow]

8

 

IN WITNESS WHEREOF, this Agreement has been executed, on the date(s) set forth
below, as of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	Federal Home Loan Bank of Atlanta	 	 	 	Federal Home Loan Bank of Boston
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ W. Wesley McMullan	 	 	 	President:	 	 /s/ Michael A. Jessee
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	W. Wesley McMullan	 	 	 	 	 	 
	 

	 	Title:
	 	Executive Vice President	 	 	 	Date:	 	5-23-06
	 
	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ D. Haddon Foster, II	 	 	 	Address for notice:
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	D. Haddon Foster, II	 	 	 	 	 	 
	 

	 	Title:
	 	First Vice President	 	 	 	111 Huntington Avenue
	Date:	 	May 23, 2006	 	 	 	Boston, MA 02199
	Address for notice:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	1475 Peachtree Street, NE	 	 	 	 
	Atlanta, GA 30309	 	 	 	 
	Attention: Director Financial Management	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Federal Home Loan Bank of Chicago	 	 	 	Federal Home Loan Bank of Cincinnati
	 
	 	 	 	 	 	 	 	 
	President:

	 	/s/ J. Mikesell Thomas
	 	 	 	President:
	 	/s/ David H. Hehman
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	6/16/06
	 	 	 	Date:
	 	June 16, 2006
	 
	 	 	 	 	 	 	 	 
	Address for notice:	 	 	 	Address for notice:
	 
	 	 	 	 	 	 	 	 
	Federal Home Loan Bank of Chicago	 	 	 	Federal Home Loan Bank of Cincinnati
	111 East Wacker Drive	 	 	 	221 East Fourth Street, Suite 1000
	Chicago, Illinois 60601	 	 	 	Cincinnati, OH 45202
	Attention: General Counsel	 	 	 	SVP/Treasurer: /s/
Carole L. Cossé
	 	 	 	 	 	 	 	 	
 

	 
	 	 	 	 	 	 	 	 
	Federal Home Loan Bank of Dallas	 	 	 	Federal Home Loan Bank of Des Moines
	 
	 	 	 	 	 	 	 	 
	President:

	 	/s/ Terry Smith
	 	 	 	President:
	 	/s/ Neil N. Fruechte
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	5/10/06
	 	 	 	Date:
	 	May 11, 2006
	 
	 	 	 	 	 	 	 	 
	Address for notice:	 	 	 	Address for notice:
	 
	 	 	 	 	 	 	 	 
	8500 Freeport Parkway South	 	 	 	907 Walnut Street 
	Suite 100	 	 	 	Des Moines, IA 50309
	Irving, Texas 75063	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Federal Home Loan Bank of Indianapolis	 	 	 	Federal Home Loan Bank of New York
	 
	 	 	 	 	 	 	 	 
	President:

	 	/s/ Martin L. Heger
	 	 	 	President:
	 	/s/ Alfred A. Delli Bovi
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	June 1, 2006
	 	 	 	Date:
	 	May 22, 2006
	 
	 	 	 	 	 	 	 	 
	Address for notice:	 	 	 	Address for notice:
	 
	 	 	 	 	 	 	 	 
	8250 Woodfield Crossing Blvd.	 	 	 	101 Park Avenue, Floor 5
	Indianapolis, IN 46240	 	 	 	New York, NY
	Attention: Milton Miuer, CFO	 	 	 	10178-0599

9

 

	 	 	 	 	 	 	 	 	 
	Federal Home Loan Bank of Pittsburgh

	 	 	 	Federal Home Loan Bank of San Francisco
	President:

	 	/s/ John R. Price
	 	 	 	President:
	 	/s/ Dean Schultz
	 

	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Date: May 24, 2006	 	 	 	Date: April 27, 2006
	 	 	 	 	 	 	 	 	 
	Address for notice:	 	 	 	Address for notice:
	 	 	 	 	 	 	 	 	 
	601 Grant Street	 	 	 	600 California Street, 4th Floor
	Attn: Capital Markets	 	 	 	San Francisco, California 94108
	Pittsburgh, PA 15219	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Federal Home Loan Bank of Seattle	 	 	 	Federal Home Loan Bank of Topeka
	 	 	 	 	 	 	 	 	 
	President:

	 	/s/ James E. Gilleran
	 	 	 	President:
	 	/s/ Andrew J. Jetter
	 

	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Date: May 17, 2006	 	 	 	Date: May 12, 2006
	 	 	 	 	 	 	 	 	 
	Address for notice:	 	 	 	Address for notice:
	 	 	 	 	 	 	 	 	 
	1501 Fourth Ave., Ste. 1800	 	 	 	Federal Home Loan Bank of Topeka
	Seattle, WA 98101-1693	 	 	 	One Security Benefit Place, Suite 100
	 	 	 	 	 	 	Topeka, KS 66606-2444
	 	 	 	 	 	 	Attn: General Counsel

	 	 	 	 	 	 	 	 	 
	Office of Finance	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Managing Director:

	 	/s/ John K. Darr	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Date: 5-22-06	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Address for notice:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Two Fountain Square	 	 	 	 	 	 
	11921 Freedom Dr. Suite 1000	 	 	 	 	 	 
	Boston, VA 20190	 	 	 	 	 	 

10

 

EXHIBIT A

WAIVER

A-1

 

	 	 	 
		 	Number:            2005-22

Date:                   December 14, 2005

Federal Housing Finance Board

Waiver Concerning the Direct Placement of Consolidated Obligations

WHEREAS, section 2A of the Federal Home Loan Bank Act (12 U.S.C. § 1422a(a)(3)) requires the
Federal Housing Finance Board (Finance Board) to ensure that the Federal Home Loan Banks (Banks)
remain adequately capitalized and able to raise funds in the capital markets to the extent
consistent with ensuring the safe and sound operation of the Banks;

WHEREAS, timely payment of all principal and interest to investors in consolidated obligations
(COs) is essential to maintain the confidence of investors and potential investors in COs;

WHEREAS, the Federal Reserve Bank of New York will implement procedures that will prevent a Bank
or any other government sponsored enterprise from incurring an overdraft in the accounts at the
Federal Reserve Bank of New York used to pay the principal and interest due on securities;

WHEREAS, the Banks Office of Finance (OF) serves as agent for each Bank in remitting to the
Federal Reserve Bank of New York all funds due for principal and interest payments on COs;

WHEREAS, under 12 C.F.R. §§ 907.2 and 907.6, any party may request a waiver of a provision,
restriction, or requirement of the Finance Board regulations not otherwise required by law if such
waiver is not inconsistent with the law, does not adversely affect any substantial existing rights
and the Finance Board finds that application of the restriction would adversely effect achievement
of the purposes of the Bank Act, or upon a showing of good cause;

WHEREAS, on October 18, 2005, the OF submitted to the Finance Board a request to waive the
prohibition on direct placement of COs in 12 C.F.R. § 966.8(c) when a Bank has not provided to the
OF by the agreed upon deadline all funds for principal and interest payments due that day on COs,
or portions of COs, for which that Bank is the primary obligor; and

WHEREAS, Finance Board staff has reviewed the waiver request and determined that it is consistent
with the Bank Act, for good cause, and raises no legal or safety and soundness concerns if the
waiver is granted pursuant to the terms of this resolution.

NOW, THEREFORE, IT IS RESOLVED that effective July 1, 2006, the Board of Directors hereby waives
12 C.F.R. § 966.8(c) when direct placement of COs is necessary to assure that the Federal Reserve
Bank of New York has sufficient funds to timely pay all principal and interest due that day on COs
or portions of COs;

 

 

Resolution Number 2005-22

Page 2 of 2

IT IS FURTHER RESOLVED that the OF must notify the Office of Supervision no later than 5:00 pm,
eastern time, on any day it directly places a CO pursuant to this waiver; and

IT IS FURTHER RESOLVED that the interest rate paid by the Bank that has not remitted all the funds
to the OF by the agreed upon deadline on the CO issued pursuant to this waiver shall be at least
500 basis points above the federal funds rate.

	 	 	 	 	 
	 

	 	By the Board of Directors

of the Federal Housing Finance Board	 	 
	 
	 	 	 	 
	 

	 	/s/ Ronald A. Rosenfeld

 

 

Ronald A. Rosenfeld
	 	 
	 

	 	 Chairman	 	 

 

 

EXHIBIT B

Contingency Funding Matrix

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Priority
	 	 	1	 	2	 	3	 	4	 	5	 	6	 	7	 	8	 	9	 	10	 	11	 	12
	Jan
	 	BOST	 	NWYK	 	PITT	 	ATLA	 	CINC	 	INDP	 	CHIC	 	DSMN	 	DALL	 	TPKA	 	SNFR	 	STTL
	Feb
	 	NWYK	 	PITT	 	ATLA	 	CINC	 	INDP	 	CHIC	 	DSMN	 	DALL	 	TPKA	 	SNFR	 	STTL	 	BOST
	Mar
	 	PITT	 	ATLA	 	CINC	 	INDP	 	CHIC	 	DSMN	 	DALL	 	TPKA	 	SNFR	 	STTL	 	BOST	 	NWYK
	Apr
	 	ATLA	 	CINC	 	INDP	 	CHIC	 	DSMN	 	DALL	 	TPKA	 	SNFR	 	STTL	 	BOST	 	NWYK	 	PITT
	May
	 	CINC	 	INDP	 	CHIC	 	DSMN	 	DALL	 	TPKA	 	SNFR	 	STTL	 	BOST	 	NWYK	 	PITT	 	ATLA
	Jun
	 	INDP	 	CHIC	 	DSMN	 	DALL	 	TPKA	 	SNFR	 	STTL	 	BOST	 	NWYK	 	PITT	 	ATLA	 	CINC
	Jul
	 	CHIC	 	DSMN	 	DALL	 	TPKA	 	SNFR	 	STTL	 	BOST	 	NWYK	 	PITT	 	ATLA	 	CINC	 	INDP
	Aug
	 	DSMN	 	DALL	 	TPKA	 	SNFR	 	STTL	 	BOST	 	NWYK	 	PITT	 	ATLA	 	CINC	 	INDP	 	CHIC
	Sep
	 	DALL	 	TPKA	 	SNFR	 	STTL	 	BOST	 	NWYK	 	PITT	 	ATLA	 	CINC	 	INDP	 	CHIC	 	DSMN
	Oct
	 	TPKA	 	SNFR	 	STTL	 	BOST	 	NWYK	 	PITT	 	ATLA	 	CINC	 	INDP	 	CHIC	 	DSMN	 	DALL
	Nov
	 	SNFR	 	STTL	 	BOST	 	NWYK	 	PITT	 	ATLA	 	CINC	 	INDP	 	CHIC	 	DSMN	 	DALL	 	TPKA
	Dec
	 	STTL	 	BOST	 	NWYK	 	PITT	 	ATLA	 	CINC	 	INDP	 	CHIC	 	DSMN	 	DALL	 	TPKA	 	SNFR

B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}]]