Document:

Exhibit 10.12

 

BEST LOGISTICS TECHNOLOGIES LIMITED 

 

2008 Equity and Performance Incentive Plan

 

 

1.                                                                                 Purpose. The purpose of the 2008 Equity and Performance Incentive Plan (the “Plan”) is  to attract, motivate and retain employees, non-employee directors, officers and consultants of Best Logistics Technologies Limited, a company organized and existing under the laws of the Cayman Islands, and its Subsidiaries; to provide to such persons incentives to stay with the Company and make contributions to the Company in the future; to demonstrate management continuity to potential investors; and to provide long-term compensation that is competitive with similarly-situated companies.

 

2.                                                                                      Definitions. As used in this Plan,

 

(a)                                                                                      “Applicable Law” means the legal requirements relating to the Plan and the Awards under applicable provisions of the corporate and securities laws of the Cayman Islands, the PRC tax laws, rules, regulations and government orders, the rules of any applicable Share exchange or national market system, and the laws and the rules of any jurisdiction applicable to Awards granted to residents therein.

 

(b)                                                                                      “Award” means any award under this Plan, including any award of Options or Restricted Share Units.

 

(c)                                                                                       “Board” means the Board of Directors of the Company and, to the extent of any delegation by the Board to the Committee (or subcommittee thereof) pursuant to Section 11 of this Plan, such Committee (or subcommittee).

 

(d)                                                                                      “Cause” means, with respect any employee, any of the reasons which would allow the Company to terminate an employee for “cause” as provided for in his or her employment agreement, including, but not limited to, if i) the employee has been proven unable to satisfy the requirements or working standards of the Company during the employee’s probation period; ii) the employee has materialy breached the rules of employment of the Company; iii) the employee has been substantially derelict in fulfilling his or her duties or has engaged in misconduct, causing material harm to the interests of the Company; or iv) the employee has been charged with a criminal offense for his or her violation of Applicable Law. With respect to any non-employee Participant, to the extent “ cause ” is not defined in the Participant’s agreement or understanding between the Company or any Subsidiary (i) any willful, material violation by the Participant of any law or regulation applicable to the business of the Company or a Subsidiary, (ii) the Participant’s commission of an act of personal dishonesty which involves personal profit in connection with the Company or any other entity having a business relationship with the Company, (iii) any material breach by the Participant of any provision of any agreement or understanding between the

 

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Company or any Subsidiary and the Participant regarding the terms of the Participant’s service as a non-employee director, officer or consultant to the Company or a Subsidiary, other than as a result of having a Disability, or a breach of any applicable invention assignment and confidentiality agreement or similar agreement between the Company or a Subsidiary and the Participant, (iv) Participant’s disregard of the policies of the Company or any Subsidiary so as to cause loss, damage or injury to the property, reputation or employees of the Company or a Subsidiary, or (v) any other misconduct by the Participant which is materially injurious to the financial condition or business reputation of, or is otherwise materially injurious to, the Company or a Subsidiary.

 

(e)                                                                                  “Change of Control” means, except as may be otherwise prescribed by the Board in an Evidence of Award, if at any time any of the following events shall have occurred:

 

(i)                                     The stockholders approve a sale of the Company for cash consideration.

 

(ii)                                  The Company is merged or consolidated or reorganized into or with another corporation or other legal person, and as a result of such merger, consolidation or reorganization the Company’s Original Shareholders cease to own, collectively with their affiliates, the largest percentage of the outstanding securities of the Company;

 

(iii)                               The Company sells or otherwise transfers all or substantially all of its assets to any other corporation (other than a Subsidiary) or other legal person, and as a result of such sale or transfer, the Company’s Original Shareholders cease to own, collectively with their affiliates, the largest percentage of the outstanding securities of the Company; or

 

(iv)                              The stockholders of the Company approve a plan of complete liquidation or dissolution of the Company.

 

(f)                                                                                   “Committee” means the compensation committee or such other committee as created and appointed by the Board to administer the Plan and having such powers as shall be specified by the Board, unless the powers of the Committee have been specifically limited by Board action, the Committee shall have all of the powers of the Board granted herein, including, without limitation, the power to amend or terminate the Plan at any time, subject to the terms of the Plan and any applicable limitations imposed by law, or if no committee is created and appointed, the Board.

 

(g)                                                                                  “Company” means Best Logistics Technologies Limited, a company organized and existing under the laws of the Cayman Islands, or any successor corporation thereto.

 

(h)                                                                                 “Date of Grant” means the date specified by the Board on which a grant of Options or a grant or sale of Restricted Share Units will become

 

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effective (which date will not be earlier than the date on which the Board takes action with respect thereto).

 

(i)                                                                                     “Director” means a member of the Board of Directors of the Company.

 

(j)                                                                                    “Disability” means the inability of the Participant, in the opinion of a qualified physician acceptable to the Company, to perform the major duties of the Participant’s position with the Company or any Subsidiary because of the sickness or injury of the Participant.

 

(k)                                                                                 “Evidence of Award” means an agreement, certificate, resolution or other type or form of writing or other evidence approved by the Board that sets forth the terms and conditions of the awards granted. An Evidence of Award may be in an electronic medium, may be limited to notation on the books and records of the Company and, with the approval of the Board, need not be signed by a representative of the Company or a Participant.

 

(1)                                                                                 “Exercise Price” means the price at which a holder of an Option may purchase the Ordinary Shares issuable upon exercise of the Option.

 

(m)                                                                             “Fair Market Value” means, as of any particular date, the fair market value of one Share of the Company as determined by the Board, in its discretion, if such determination is expressly allocated to the Company herein, subject to the following:

 

(i)                                     If, on such date, the Share is listed on a national or other regulated securities exchange or market system, the Fair Market Value of a Share shall be the closing price of a Share (or the mean of the closing bid and asked prices of a Share if the Share is so quoted instead) as quoted on the national or regional securities exchange or market system constituting the primary market for the Shares, as reported in such source as the Company deems reliable. If the relevant date does not fall on a day on which the Share has traded on such securities exchange or market system, the date on which the Fair Market Value shall be established shall be the last day on which the Share was so traded prior to the relevant date, or such other appropriate day as shall be determined by the Board, in its discretion.

 

(ii)                                  If, on such date, the Share is not listed on a national or regional securities exchange or market system, the Fair Market Value of a Share shall be as determined by the Board in good faith without regard to any restriction other than a restriction which, by its terms, will never lapse.

 

(n)                                                                                 “Option” means an award of an option to purchase Shares pursuant to Section 4 of this Plan.

 

(o)                                                                                 “Original Shareholders” means CHOU Shao-Ning Johnny, George CHOW, CHOU Shaohan Joe, and CHU Shu-Ying.

 

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(p)                                                                                 “Participant” means a person who is selected by the Board to receive benefits under this Plan and who is at the time an employee, non-employee director, officer or consultant of the Company or any one or more of its Subsidiaries, or who has agreed to commence serving in any of such capacities within 90 days of the Date of Grant. The term “Participant” shall also include any person who provides services to the Company or a Subsidiary that are equivalent to those typically provided by an employee.

 

(q)                                                                                 “PRC” means the People’s Republic of China.

 

(r)                                                                                    “Restriction Period” shall have the meaning given to such term in any Evidence of Award for Restricted Share Units.

 

(s)                                                                                   “Restricted Share Units” means an award made pursuant to Section 5 of this Plan of the right to receive Shares at the end of a specified Restriction Period.

 

(t)                                                                                    “Shares” means the ordinary shares of the Company, par value US$0.01 per share, or any security into which such Shares may be changed by reason of any transaction or event of the type referred to in Section 7 of this Plan.

 

(u)                                                                                 “Subsidiary” means a corporation, company or other entity (i) more than fifty percent (50%) of whose outstanding shares or securities (representing the right to vote for the election of directors or other managing authority) are, or (ii) which does not have outstanding shares or securities (as may be the case in a partnership, joint venture or unincorporated association), but more than fifty percent (50%) of whose ownership interest representing the right generally to make decisions for such other entity is, now or hereafter, owned or controlled, directly or indirectly, by the Company.

 

(v)                                                                                 “Termination” or “Terminated” means, for purposes of this Plan with respect to a Participant, which the Participant has for any reason, ceased to provide services as an employee, non-employee director, officer and consultant of the Company or a Subsidiary. A Participant will not be deemed to have ceased to provide services in the case of sick leave, military leave or any other leave of absence approved by the Committee, provided that such leave is for a period of not more than 90 days (a) unless reinstatement upon the expiration of such leave is guaranteed by contract or statute, or (b) unless provided otherwise pursuant to formal policy adopted from time to time by the Company’s Board and issued and promulgated in writing. In the case of any Participant on sick leave, military leave or an approved leave of absence, the Committee may make such provisions respecting suspension of vesting of the Award while on leave from the Company or a Subsidiary as it may deem appropriate, except that in no event may an Option be exercised after the expiration of the term set forth in the Evidence of Award. The Committee will have sole discretion to determine whether a Participant has ceased to provide services and the effective date on which the Participant ceased to provide services (the “Termination Date”).

 

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3.                                                                                      Shares Available Under the Plan.

 

(a)                                                                                 Subject to adjustment as provided in Section 7 of this Plan, the number of Shares that may be issued or transferred (i) upon the exercise of Options, or (ii) upon conversion of Restricted Share Units into Shares shall not exceed in the aggregate 10,000,000 Shares. In addition to the Shares authorized by the preceding sentence, to the extent any award under this Plan otherwise terminates without the issuance of some or all of the Shares underlying the award to a Participant or if any Option under this Plan terminates without having been exercised in full, the Shares underlying such Award, to the extent of any such forfeiture or termination, shall be available for future grant under this Plan and credited toward the Plan limit. Such Shares may be Shares of original issuance or Shares that have been previously issued, made available to or acquired by the Company or a combination of the foregoing. Subject to Section 12(a), the Board may, at any time, increase or reduce the number of Shares subject to this Plan, but not below the number of Shares then issuable upon outstanding, unexercised Options and unvested Restricted Share Units.

 

(b)                                                                                 The total number of Shares available under this Plan as of a given date shall not be reduced by any Shares relating to prior awards that have expired or have been forfeited or cancelled. Notwithstanding anything to the contrary contained herein: (i) the number of Shares tendered or otherwise used in payment of the Exercise Price of an Option shall nonetheless reduce the aggregate plan limit described above and (ii) the number of Shares withheld by the Company to satisfy any tax withholding obligation shall reduce the aggregate plan limit described above.

 

(c)                                                                                  Upon payment in cash of a benefit provided by any Award granted under this Plan, any Shares that were covered by that Award shall again be available for issue or transfer hereunder.

 

4.                                                                                      Options. The Board may, from time to time and upon such terms and conditions as it may determine, authorize the granting to Participants of options to purchase Shares. Each such grant may utilize any or all of the authorizations, and will be subject to all of the requirements contained in the following provisions:

 

(a)                                                                                 Each grant will specify the number of Shares to which it pertains subject to the limitations set forth in Section 3 of this Plan.

 

(b)                                                                                 Each grant will specify an Exercise Price per Share, which, may be more or less than the Fair Market Value of the Shares on Date of Grant, provided that any grant to Participants who are U.S. citizens or tax payers will comply with Section 409A of the U.S. Internal Revenue Code of 1986, as amended.

 

(c)                                                                                  Each grant will specify whether the Exercise Price will be payable:

 

(i)                                in cash or by check acceptable to the Company in a currency determined by the Committee;

 

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(ii)                                  by tender of a full recourse promissory note having such terms as may be approved by the Committee;

 

(iii)                               to the extent authorized by the Committee, by the actual or constructive transfer to the Company of Shares owned by the Participant for at least six months having a value at the time of exercise equal to the total Exercise Price;

 

(iv)                              with respect only to purchases upon exercise of an Option, to the extent permitted by law, and provided that a public market for the Company’s shares exists, through the proceeds of sale through a broker on a date satisfactory to the Company of some or all of the Shares to which such exercise relates;

 

(v)                                 by any combination of the foregoing; or

 

(vi)                              by any such other method approved by the Board.

 

(d)                                                                                 Successive grants may be made to the same Participant whether or not any Option previously granted to such Participant remains unexercised.

 

(e)                                                                                  Each grant will specify the period or periods of continuous service by the Participant with the Company or any Subsidiary that is necessary before the Options or installments thereof will become exercisable. Notwithstanding the foregoing, any such grant of Options may provide for the immediate exercisability of the Option.

 

(f)                                                                                   Any grant of Options may specify management objectives that must be achieved as a condition to the exercise of such rights.

 

(g)                                                                                  The Board reserves the discretion after the Date of Grant to provide for (i) the payment of a cash bonus at the time of exercise; (ii) the availability of a loan at exercise; (iii) the right to tender in satisfaction of the Exercise Price nonforfeitable, unrestricted Shares, which are already owned by the Participant and have a value at the time of exercise that is equal to the Exercise Price.

 

(h)                                                                                 Each grant of Options will be evidenced by an Evidence of Award. Each Evidence of Award shall be subject to the Plan and shall contain such terms and provisions as the Board may approve.

 

5.                                      Restricted Share Units. The Committee may also authorize the granting or sale of Restricted Share Units to Participants. Each such grant or sale may utilize any or all of the authorizations, and shall be subject to all of the requirements contained in the Evidence of Award and in the following provisions:

 

(a)                                 Each such grant or sale of Restricted Share Units shall constitute the agreement by the Company to deliver Shares to the Participant in the future in consideration of the performance of services, but subject to the fulfillment of such conditions during the Restriction Period contained in the Evidence of Award and as the Board may specify.

 

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(b)                                 Each such grant or sale may be made without additional consideration or in consideration of a payment by such Participant that is less than the Fair Market Value of the Shares at the Date of Grant.

 

(c)                                  Each grant will specify whether the Restricted Shares Units will be payable at the end of the Restriction Period by the actual transfer to the Participant of Shares, or by some alternative method of payment.

 

(d)                                 Any grant of Restricted Share Units may specify management objectives that, must be achieved as a condition to the Restricted Share Units vesting.

 

(e)                                  Each grant or sale of Restricted Share Units shall be evidenced by an Evidence of Award and shall contain such terms and provisions, consistent with this Plan, as the Board may approve.

 

6.                                                                                      Transferability.

 

(a)                                                                                 Except as otherwise determined by the Board or specified in individual option grant agreements with Participants, no Award granted under this Plan shall be transferable by a Participant other than by will or the laws of descent and distribution. Except as otherwise determined by the Board and permitted by Applicable Law, Options shall be exercisable during the Participant’s lifetime only by him or her or by his or her guardian or legal representative.

 

(b)                                                                                 The Board may specify at the Date of Grant that part or all of the Shares that are (i) to be issued or transferred by the Company upon the exercise of Options or upon the termination of the Restriction Period applicable to Restricted Share Units or (ii) no longer subject to the risk of forfeiture and restrictions on transfer referred to in Sections 5 of this Plan, will be subject to further restrictions on transfer.

 

7.                                                                                      Adjustments. The Board shall make or provide for such adjustments in the number of Shares covered by outstanding Options granted hereunder, in the Exercise Price, and in the kind of shares covered thereby, as the Board, in its sole discretion, exercised in good faith, may determine is equitably required to prevent dilution or enlargement of the rights of Participants that otherwise would result from (a) any share dividend, share split, combination of shares, recapitalization or other change in the capital structure of the Company, (b) any merger, consolidation, spin-off, split-off, spin-out, split-up, reorganization, partial or complete liquidation or other distribution of assets, issuance of rights or warrants to purchase securities, or (c) any other corporate transaction or event having an effect similar to any of the foregoing. Moreover, in the event of any such transaction or event, the Board, in its discretion, may provide in substitution for any or all outstanding Awards under this Plan such alternative consideration as it, in good faith, may determine to be equitable in the circumstances and may require in connection therewith the surrender of all Awards so replaced. The Board shall also make or provide for such adjustments in the number of Shares specified in Section 3 of this Plan as the Board in its sole discretion, exercised

 

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in good faith, may determine is appropriate to reflect any transaction or event described in this Section 7.

 

8.                                                                                      Fractional Shares. The Company shall not be required to issue any fractional Shares pursuant to this Plan. The Board may provide for the elimination of fractions or for the settlement of fractions in cash.

 

9.                                                                                      Withholding Taxes. The Company shall have the power to withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy all applicable withholding requirements on any Award under the Plan, and the Company may defer issuance of Shares until such requirements are satisfied. The Committee may, in its discretion, permit a Participant to elect, subject to such conditions as the Committee shall impose, (i) to have Shares otherwise issuable under the Plan withheld by the Company or (ii) to deliver to the Company previously acquired Shares, in each case having a Fair Market Value sufficient to satisfy all or part of the Participant’s estimated total tax obligation associated with the transaction.

 

10.                                                                               Multiple Jurisdictions. In order to facilitate the making of any grant under this Plan, the Board may provide for such special terms for Awards to Participants who are employed by the Company or any of its Subsidiaries in any particular jurisdiction other than the PRC, or who are nationals of any particular jurisdiction other than the PRC, as the Board may consider necessary or appropriate to accommodate differences in local law, tax policy or custom. In addition, the Board may approve such supplements to or restatements or alternative versions of this Plan, including, without limitation, a sub-plan to this Plan, as it may consider necessary or appropriate for such purposes, without thereby affecting the terms of this Plan as in effect for any other purpose, and the Company Secretary or other appropriate officer of the Company may certify any such document as having been approved and adopted in the same manner as this Plan. No such special terms, supplements or restatements, however, shall include any provisions that are inconsistent with the terms of this Plan as then in effect unless this Plan could have been amended to eliminate such inconsistency without further approval by the shareholders of the Company.

 

11.                               Administration of the Plan.

 

(a)                                                                                 This Plan will be administered by the Board, which may from time to time delegate all or any part of its authority under this Plan to the Committee (or a subcommittee thereof), as constituted from time to time. To the extent permitted by law, the Board may otherwise delegate any of its authority under the Plan to any person or persons. A majority of the Committee (or subcommittee) will constitute a quorum, and the action of the members of the Committee (or subcommittee) present at any meeting at which a quorum is present, or acts unanimously approved in writing, will be the acts of the Committee (or subcommittee). To the extent of any such delegation, references in this Plan to the Board will be deemed to be references to such Committee or subcommittee.

 

(b)                                                                                 The interpretation and construction by the Board of any provision of this Plan or of any agreement, notification or document evidencing the grant

 

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of Options or Restricted Share Units and any determination by the Board pursuant to any provision of this Plan or of any such agreement, notification or document will be final and conclusive. No member of the Board will be liable for any such action or determination made in good faith.

 

12.                                                                               Amendments and Miscellaneous.

 

(a)                                                                                      The Board may at any time and from time to time amend the Plan in whole or in part; provided, however, that any amendment which must be approved by the shareholders of the Company in order to comply with Applicable Law or the rules of the principal securities exchange upon which the Shares are traded or quoted, will not be effective unless and until such approval has been obtained. Nothing herein shall be construed to limit the Company’s authority to offer similar or dissimilar benefits under other plans or otherwise with or without further shareholder approval.

 

(b)                                                                                      The Board also may permit Participants to elect to defer the issuance of Shares or the settlement of Awards in cash under the Plan pursuant to such rules, procedures or programs as it may establish for purposes of this Plan. The Board also may provide that deferred issuances and settlements include the payment or crediting of dividend equivalents or interest on the deferral amounts.

 

(c)                                                                                       The Board may condition the grant of any Award or combination of Awards authorized under this Plan on the surrender or deferral by the Participant of his or her right to receive a cash bonus or other compensation otherwise payable by the Company or a Subsidiary to the Participant.

 

(d)                                                                                      Shares issued under the Plan may be subject to a right of first refusal, one or more repurchase options, or other conditions and restrictions as determined by the Board in its discretion at the time the Award is granted. The Company shall have the right to assign at any time any repurchase right it may have, whether or not such right is then exercisable, to one or more persons as may be selected by the Company. Upon request by the Company, each Participant shall execute any agreement evidencing such transfer restrictions prior to the receipt of Shares hereunder and shall promptly present to the Company any and all certificates representing Shares acquired hereunder for the placement on such certificates of appropriate legends evidencing any such transfer restrictions.

 

(e)                                                                                       Option and RSU Awards may be subject to accelerated vesting and conversion into Shares, as applicable, as determined by the Board, in its sole discretion, or upon a public offering of the shares on a national securities exchange or other regulated market system, as provided in the evidence of Award.

 

(f)                                                                                        This Plan shall not confer upon any Participant any right with respect to employment or other service with the Company or any Subsidiary (including, without limitation, continuation of employment), nor shall it

 

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interfere in any way with any right the Company or any Subsidiary would otherwise have to terminate such Participant’s employment or other service at any time, with or without Cause.

 

(g)                                                                                  The terms of employment of an employee shall not be affected by the execution of this Plan. Awards granted under this Plan shall not form a part of the terms of employment of an employee or entitle such employee to take into account Awards granted under this Plan when calculating any compensation or damages upon Termination of such employee’s employment for any reason.

 

(h)                                                                                 This Plan shall be effective immediately upon its adoption by the Board. All Awards under this Plan shall be null and void if the Plan is not approved by the shareholders within such 12-month period.

 

13.                                                                               Governing Law. The Plan and all grants and Awards and actions taken thereunder shall be governed by and construed in accordance with the internal substantive laws of the Cayman Islands.

 

14.                                                                               Compliance with Law. The grant of Awards and the issuance of Shares in connection with such Awards under this Plan shall be subject to compliance with all applicable requirements of the laws of the PRC, the laws of the Cayman Islands, and all other Applicable Laws with respect to the issuance of securities. Options may not be exercised and Restricted Share Units may not be paid out if the issuance of Shares would constitute a violation of any Applicable Laws or the requirements of any stock exchange or market system upon which the Shares may then be listed. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any Shares hereunder shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such requisite authority shall not have been obtained. As a condition to the exercise of any Options or payment of Restricted Share Units, the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any Applicable Law and to make any representation or warranty with respect thereto as may be requested by the Company.

 

15.                                                                               Termination. No grant will be made under this Plan more than 10 years after the date on which this Plan is first approved by the Board, but all grants made on or prior to such date will continue in effect thereafter subject to the terms thereof and of this Plan.

 

16.                                                                               Legends. All certificates evidencing Shares issued or delivered under this Plan shall bear the following legends and/or any other appropriate or required legends under applicable laws:

 

“OWNERSHIP OF THIS CERTIFICATE AND THE SHARES EVIDENCED BY THIS CERTIFICATE AND ANY INTEREST THEREIN ARE SUBJECT TO SUBSTANTIAL RESTRICTIONS ON TRANSFER UNDER APPLICABLE LAW AND UNDER AGREEMENTS WITH THE COMPANY, INCLUDING RESTRICTIONS ON SALE, ASSIGNMENT,

 

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TRANSFER, PLEDGE OR OTHER DISPOSITION UNDER SECTION 6 OF THE COMPANY’S 2008 EQUITY AND PERFORMANCE INCENTIVE PLAN, COPIES OF WHICH ARE AVAILABLE FOR REVIEW AT THE OFFICE OF THE SECRETARY OF THE COMPANY.”

 

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“ACT”). NO TRANSFER OF SUCH SECURITIES WILL BE PERMITTED UNLESS A REGISTRATION STATEMENT UNDER THE ACT IS IN EFFECT AS TO SUCH TRANSFER, THE TRANSFER IS MADE IN ACCORDANCE WITH RULE 144 UNDER THE ACT, OR IN THE OPINION OF COUNSEL TO THE CORPORATION, REGISTRATION UNDER THE ACT IS UNNECESSARY IN ORDER FOR SUCH TRANSFER TO COMPLY WITH THE ACT AND WITH APPLICABLE STATE SECURITIES LAWS.”

 

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Amendment No. 1 to

 

Best Logistics Technologies Limited

 

2008 Equity and Performance Incentive Plan (the “Plan”)

 

(Adopted pursuant to resolutions of the Board of Directors of Best Logistics Technologies Limited passed on July 30, 2014 and March 27, 2015)

 

1.              Section 2(o) of the Plan shall be deleted in its entirety and replaced with the following:

 

“‘Original Shareholders’ means CHOU Shao-Ning Johnny, George CHOW, CHOU Shaohan Joe, David Hsiaoming Ting and The 2012 MKB Irrevocable Trust.”

 

2.              Section 3(a) of the Plan shall be deleted in its entirety and replaced with the following:

 

“Subject to adjustment as provided in Section 7 of this Plan, the number of Shares that may be issued or transferred (i) upon the exercise of Options, or (ii) upon conversion of Restricted Share Units into Shares shall not exceed in the aggregate 20,934,684 Shares. In addition to the Shares authorized by the preceding sentence, to the extent any award under this Plan otherwise terminates without the issuance of some or all of the Shares underlying the award to a Participant or if any Option under this Plan terminates without having been exercised in full, the Shares underlying such Award, to the extent of any such forfeiture or termination, shall be available for future grant under this Plan and credited toward the Plan limit. Such Shares may be Shares of original issuance or Shares that have been previously issued, made available to or acquired by the Company or a combination of the foregoing. Subject to Section 12(a), the Board may, at any time, increase or reduce the number of Shares subject to this Plan, but not below the number of Shares then issuable upon outstanding, unexercised Options and unvested Restricted Share Units.”

 

- 12 -Net1 UEPS Technologies, Inc. - Exhibit 10.67 - Filed by newsfilecorp.com

	 	Exhibit 10.67 
	 	EXECUTION VERSION

	
       

      EQUITY IMPLEMENTATION AGREEMENT 

       

between 

3C TELECOMMUNICATIONS PROPRIETARY LIMITED 

and 

THE PREPAID COMPANY PROPRIETARY LIMITED 

and 

NET1 APPLIED TECHNOLOGIES SOUTH AFRICA PROPRIETARY LIMITED

and 

THE PARTIES IDENTIFIED IN SCHEDULE 1.1.52 

and 

ALBANTA TRADING 109 PROPRIETARY LIMITED 

and 

CEDAR CELLULAR INVESTMENT 1 (RF) PROPRIETARY LIMITED 

and 

MAGNOLIA CELLULAR INVESTMENT 2 (RF) PROPRIETARY LIMITED

and 

YELLOWWOOD CELLULAR INVESTMENT 3 (RF) PROPRIETARY LIMITED

and 

CELL C PROPRIETARY LIMITED 

CONTENTS 

	1. 	DEFINITIONS AND INTERPRETATION 	2
    
	2. 	PROVISIONS
      WHICH TAKE IMMEDIATE EFFECT 	14 
	3. 	CONDITIONS PRECEDENT 	14
      
	4. 	TRANSACTION
      UNDERTAKINGS 	20 
	5. 	NET DEBT CONFIRMATION 	22
      
	6. 	CONDUCT OF
      BUSINESS 	22 
	7. 	PRE-CLOSING COVENANTS 	24
      
	8. 	PRE-CLOSING
      MEETING 	24 
	9. 	CLOSING 	25
      
	10. 	BREACH AND
      TERMINATION 	25 
	11. 	WARRANTIES 	26
      
	12. 	ANNOUNCEMENTS AND CONFIDENTIALITY 	27 
	13. 	INDEPENDENT EXPERT DETERMINATION 	29
      
	14. 	DISPUTE
      RESOLUTION 	30 
	15. 	ADDRESSES FOR LEGAL PROCESSES AND NOTICES 	31
      
	16. 	LIMITATION
      OF LIABILITY 	34 
	17. 	GENERAL 	34
      
	18. 	COSTS
      	37 
	SCHEDULE 1.1.52 MEMBERS OF M5 	42
      
	SCHEDULE 9 CLOSING ARRANGEMENTS 	43 
	SCHEDULE 13.2 INDEPENDENT EXPERT 	49
      

- i - 

PARTIES: 

This Agreement is made between: 

	(1) 	
      3C TELECOMMUNICATIONS PROPRIETARY LIMITED, a
      company incorporated in South Africa under registration number
      1999/010091/07 (3C);

	 	 
	(2) 	
      THE PREPAID COMPANY PROPRIETARY LIMITED, a company
      incorporated in South Africa under registration number 1999/016716/07
      (BLT);

	 	 
	(3) 	
      NET1 APPLIED TECHNOLOGIES SOUTH AFRICA PROPRIETARY
      LIMITED, a company incorporated in South Africa under registration
      number 2002/031446/07 (NET1);

	 	 
	(4) 	
      THE PARTIES IDENTIFIED IN SCHEDULE 1.1.52 HERETO
      (collectively referred to as M5);

	 	 
	(5) 	
      ALBANTA TRADING 109 PROPRIETARY LIMITED, a company
      incorporated in South Africa under registration number 2015/261614/07
      (MS15);

	 	 
	(6) 	
      CEDAR CELLULAR INVESTMENT 1 (RF) PROPRIETARY
      LIMITED, a company incorporated in South Africa under registration
      number 2017/068178/07 (SPV1);

	 	 
	(7) 	
      MAGNOLIA CELLULAR INVESTMENT 2 (RF) PROPRIETARY
      LIMITED, a company incorporated in South Africa under registration
      number 2017/068221/07 (SPV2);

	 	 
	(8) 	
      YELLOWWOOD CELLULAR INVESTMENT 3 (RF) PROPRIETARY
      LIMITED, a company incorporated in South Africa under registration
      number 2017/068241/07 (SPV3); and

	 	 
	(9) 	
      CELL C PROPRIETARY LIMITED, a company incorporated
      in South Africa under registration number 1999/007722/07 (the
      Company).

WHEREAS 

	A. 	
      Following a period of financial difficulties, the Company
      and certain other stakeholders have been in negotiations with the
      objective of reaching an agreement for the restructuring of the Company’s
      equity and debt.

	 	 
	B. 	
      Each of BLT, NET1, M5, MS15 and the SPV Subscribers have
      been identified as parties which would add significant value as
      shareholders in the Company and, as such, have agreed to partake in the
      Proposed Transaction.

- 1 - 

	C. 	
      The Parties are entering into this Agreement in order to
      provide an implementation framework for the Proposed Transaction and to
      provide for certain key commercial and legal principles, terms and
      conditions which will, as amongst them, be applicable to the envisaged
      transactions collectively.

IT IS AGREED AS FOLLOWS: 

	1. 	
      DEFINITIONS AND
INTERPRETATION

	1.1 	
      Definitions

	 	 
		
      For the purposes of this Agreement and the preamble
      above, unless the context requires otherwise:

	1.1.1 	
      3C means 3C Telecommunications Proprietary
      Limited, a company incorporated in South Africa under registration
      number 1999/010091/07;

	 	 
	1.1.2 	
      Accounting Principles means the latest accounting
      principles, policies and generally accepted accounting practice applied by
      the Company in accordance with all Applicable Laws and IFRS, consistently
      applied, and consistent with past accounting and management practice as is
      contained and/or reflected in the Annual Financial Statements;

	 	 
	1.1.3 	
      Affiliate means:

	1.1.3.1 	
      in relation to any Undertaking, any subsidiary (or its
      equivalent) or any parent Undertaking (namely, a holding company or its
      equivalent) of that Undertaking and any subsidiary (or its equivalent) of
      any such parent Undertaking (namely, a holding company or its equivalent),
      in each case from time to time; and

	 	 
	1.1.3.2 	
      in relation to an individual means a Related Person or
      any Undertaking (including any trusts) in which such individual or his/her
      Related Person has ownership or a Controlling
Interest;

	1.1.4 	
      AFSA has the meaning given to it in clause
      14.3;

	 	 
	1.1.5 	
      Aggrieved Party has the meaning given to it in
      clause 10.1;

	 	 
	1.1.6 	
      Agreed Form means, in relation to a document, the
      form of that document which has been initialed for the purpose of
      identification by or on behalf of 3C and the Subscribing Parties (in each
      case as validly amended, substituted, varied, novated, revived, replaced,
      restated and/or supplemented from time to time);

	 	 
	1.1.7 	
      Agreement means this equity implementation
      agreement and includes the Schedules which shall form part of
  it;

- 2 - 

	1.1.8 	
      Annual Financial Statements means the signed
      consolidated audited financial statements of the Group for the year ended
      December 2016, prepared in accordance with the Accounting Principles and
      including the audited: (i) balance sheet; (ii) income statement; (iii)
      cash flow statement; and (iv) statement of changes in equity, including
      related notes and schedules thereto;

	 	 
	1.1.9 	
      Applicable Law means any laws, by-laws, statutes,
      rules, regulations, subordinate legislation, orders, ordinances, notices,
      notifications, directions, restrictions, common law, judgments, decrees,
      circulars, decisions or other requirements or directives of any
      Governmental Entity, and includes the Companies Act, the Currency and
      Exchanges Act, anti-bribery legislation, as well as any protocols,
      policies, codes, guidelines, standards, resolutions, guidance notes and
      any interpretation of any of the foregoing by a Governmental Entity, in
      all cases only to the extent that they have the force of law;

	 	 
	1.1.10 	
      Approvals means, as applicable, licences, permits,
      permissions, authorisations, rights, consents, clarifications, approvals,
      clearances, confirmations, waivers, exemptions and registrations from any
      Governmental Entity, including without limitation any licences and
      registrations under Applicable Law relating to Tax;

	 	 
	1.1.11 	
      Associates means Undertakings where a minority
      part of the shares or portion of the other interest in such Undertaking is
      held by a member of the Group but where such Undertaking does not form
      part of the Group and is not consolidated into the financial accounts of
      the Company;

	 	 
	1.1.12 	
      BLT means The Prepaid Company Proprietary Limited,
      a company incorporated in South Africa under registration number
      1999/016716/07;

	 	 
	1.1.13 	
      BLT Parent means Blue Label Telecoms Limited, a
      company incorporated in South Africa under registration number
      2006/022679/06;

	 	 
	1.1.14 	
      BLT Subscription Agreement means the subscription
      agreement between the Company and BLT pertaining to the subscription by
      BLT for the BLT Subscription Shares, entered into simultaneously with this
      Agreement;

	 	 
	1.1.15 	
      BLT Subscription Price means the BLT Subscription
      Price as defined in the BLT Subscription Agreement;

	 	 
	1.1.16 	
      BLT Subscription Shares means the BLT Subscription
      Shares as defined in the BLT Subscription Agreement;

	 	 
	1.1.17 	
      Board of Directors means the board of directors of
      the Company from time to time;

- 3 - 

	1.1.18 	
      Business means the business conducted by the Group
      from time to time being, predominantly as at the Implementation Date, the
      operation of an Electronic Communications Network and the provision of
      Electronic Communications Network services to the public and includes all
      ancillary activities and successor technologies;

	 	 
	1.1.19 	
      Business Day means any calendar day other than a
      Saturday, Sunday or statutory holiday in South Africa;

	 	 
	1.1.20 	
      Cell C SP means Cell C Service Provider Company
      Proprietary Limited, a company registered in accordance with the laws of
      South Africa under registration number 2001/008017/07;

	 	 
	1.1.21 	
      CIPC means the Companies and Intellectual
      Properties Commission established by section 185 of the Companies
    Act;

	 	 
	1.1.22 	
      Closing means completion of all the matters
      envisaged in clause 9 on the Implementation Date;

	 	 
	1.1.23 	
      Companies Act means the Companies Act, No. 71 of
      2008, as amended;

	 	 
	1.1.24 	
      Companies Regulations means the Companies
      Regulations, 2011;

	 	 
	1.1.25 	
      Company means Cell C Proprietary Limited, a
      company registered in accordance with the laws of South Africa under
      registration number 1999/007722/07;

	 	 
	1.1.26 	
      Company Indemnity Agreement means the indemnity
      agreement to be entered into between the Company and Oger Telecom Limited
      pertaining to certain indemnities provided by the Company to Oger Telecom
      Limited;

	 	 
	1.1.27 	
      Conditions means the conditions precedent to which
      this Agreement is subject set out in clause 3 and Condition means
      any of them;

	 	 
	1.1.28 	
      Confidential Information has the meaning given to
      it in clause 12.1;

	 	 
	1.1.29 	
      Controlling Interest
means:

	1.1.29.1 	
      the ownership or control (directly or indirectly) of more
      than 50% (fifty per cent) of the voting share capital of the relevant
      Undertaking;

	 	 
	1.1.29.2 	
      the ability to direct the casting of more than 50% (fifty
      per cent) of the votes exercisable at general meetings of the relevant
      Undertaking on all, or substantially all, matters;

	 	 
	1.1.29.3 	
      the ability otherwise to direct or instruct the affairs,
      decisions or actions of the relevant Undertaking;
or

- 4 - 

	1.1.29.4 	
      the right to appoint or remove directors of the relevant
      Undertaking holding a majority of the voting rights at meetings of the
      board of such Undertaking on all, or substantially all, matters, in each
      case by a person or persons acting individually or in concert, directly or
      indirectly, including by virtue of their shareholding or management rights
      or shareholders’ agreements or voting agreements or in any other
      manner;

	1.1.30 	
      Currency and Exchanges Act means the Currency and
      Exchanges Act, No. 9 of 1933, as amended;

	 	 
	1.1.31 	
      Defaulting Party has the meaning given to it in
      clause 10.1;

	 	 
	1.1.32 	
      Designated Representative has the meaning given to
      it in the Master Implementation Agreement;

	 	 
	1.1.33 	
      Directors means the Company’s directors from time
      to time, and Director means any of them;

	 	 
	1.1.34 	
      Dispute Notice has the meaning given to it in
      clause 14.2;

	 	 
	1.1.35 	
      Electronic Communications means the emission,
      transmission or reception of information, including without limitation,
      voice, sound, data, text, video, animation, visual images, moving images
      and pictures, signals or a combination thereof by means of magnetism,
      radio or other electromagnetic waves, optical, electromagnetic systems or
      any agency of a like nature, whether with or without the aid of tangible
      conduct, but does not include content service;

	 	 
	1.1.36 	
      Electronic Communications Network means any system
      of Electronic Communications facilities (excluding subscriber equipment),
      including without limitation:

	1.1.36.1 	
      satellite systems;

	 	 
	1.1.36.2 	
      fixed systems (circuit- and packet-switched);

	 	 
	1.1.36.3 	
      mobile systems;

	 	 
	1.1.36.4 	
      fibre optic cables (undersea and land-based);

	 	 
	1.1.36.5 	
      electricity cable systems (to the extent used for
      Electronic Communications services); and

	 	 
	1.1.36.6 	
      other transmission systems, used for conveyance of
      Electronic Communications,

		
      and all successor technologies;

	 	 
	1.1.37 	
      Encumbrance in relation to any shares, includes
      any pledge, charge, hypothecation, lien, subordination, mortgage, option
      over, right of retention or any other encumbrance whatsoever,
  or any form of hedging or similar derivative instrument of
      any nature whatsoever of or over those shares, or any lending of shares,
      and the words Encumber, Encumbered and Encumbering
      shall have corresponding meanings;

- 5 - 

	 	 
	1.1.38 	
      Exchange Control Regulations means the Exchange
      Control Regulations, 1961, as amended (including any applicable directive
      and rulings of Exchange Control and Treasury);

	 	 
	1.1.39 	
      Financial Markets Act means the Financial Markets
      Act, No. 19 of 2012, as amended;

	 	 
	1.1.40 	
      FinSurv means the Financial Surveillance
      Department of the SARB responsible for the administration of exchange
      control on behalf of the Minister of Finance or an officer of Treasury
      who, by virtue of the division of work in Treasury, deals with the matter
      on the authority of the Minister of Finance;

	 	 
	1.1.41 	
      Funds Flow Bank has the meaning given to it in the
      Master Implementation Agreement;

	 	 
	1.1.42 	
      Governmental Entity
means:

	1.1.42.1 	
      the government of South Africa (including any national,
      state, municipal or local government or any political or administrative
      subdivision thereof) and any department, ministry, agency,
      instrumentality, court, central bank, commission or other authority
      thereof;

	 	 
	1.1.42.2 	
      any governmental, quasi-governmental or private body or
      agency lawfully exercising, or entitled to exercise, any administrative,
      executive, judicial, legislative, regulatory, licensing, competition, tax,
      importing or other governmental authority or quasi-governmental authority
      within South Africa; and

	 	 
	1.1.42.3 	
      any licensed exchange in terms of the Financial Markets
      Act within South Africa;

	1.1.43 	
      Group means the Company and its Subsidiaries from
      time to time and Group Company shall mean any one company or
      Undertaking within the Group, as the context may require;

	 	 
	1.1.44 	
      IFRS means International Financial Reporting
      Standards as issued from time to time by the International Accounting
      Standards Board or its successor body;

	 	 
	1.1.45 	
      Implementation Date has the meaning given to it in
      the Master Implementation Agreement;

	 	 
	1.1.46 	
      Independent Expert has the meaning given to it in
      clause 13.2;

	 	 
	1.1.47 	
      Interim Period means the period between 1 January
      2016 and Closing on the Implementation Date;

- 6 - 

	1.1.48 	
      JSE means JSE Limited, a company registered in
      accordance with the laws of South Africa under registration number
      2005/022939/06, trading under the name and style of “Johannesburg Stock
      Exchange” which is licensed as an exchange under the Financial Markets
      Act;

	 	 
	1.1.49 	
      Listing Requirements means the listing
      requirements of the JSE, as amended from time to time;

	 	 
	1.1.50 	
      Long Stop Date has the meaning given to it in
      clause 3.1;

	 	 
	1.1.51 	
      Losses means all losses, damages, costs (including
      without being limited to reasonable attorneys’ fees and any out-of-pocket
      expenses incurred in connection with applicable investigations) and other
      liquidated liabilities, but excludes consequential damages or damages that
      may result from damage to reputation, goodwill and/or brand;

	 	 
	1.1.52 	
      M5 means, collectively, those individuals set out
      in Schedule 1.1.52 and any reference to M5 shall be a
      reference to such individuals acting jointly, unless the context
      specifically indicates otherwise;

	 	 
	1.1.53 	
      M5 Subscription Agreement means the subscription
      agreement between the Company and M5 pertaining to the subscription by M5
      for the M5 Subscription Shares, entered into simultaneously with this
      Agreement;

	 	 
	1.1.54 	
      M5 Subscription Price means the M5 Subscription
      Price as defined in the M5 Subscription Agreement;

	 	 
	1.1.55 	
      M5 Subscription Shares means the M5 Subscription
      Shares as defined in the M5 Subscription Agreement;

	 	 
	1.1.56 	
      Management Accounts means the monthly statements
      of comprehensive income and statements of financial position prepared and
      finalised by the Company during the month immediately following the
      calendar month to which the relevant statement of comprehensive income and
      statement of financial position relates, which shall be prepared on the
      same basis and include the same level of detail that the Company has
      prepared such statements historically and shall include cash flow
      statements;

	 	 
	1.1.57 	
      Master Implementation Agreement means the
      agreement titled “Master Implementation and Funds Flow Agreement” between,
      inter alia, the Parties and the Company’s lenders to be concluded
      on or about the Signature Date;

	 	 
	1.1.58 	
      MOI means the Agreed Form memorandum of
      incorporation of the Company to be adopted with effect from
  Closing;

- 7 - 

	1.1.59 	
      MS15 means Albanta Trading 109 Proprietary
      Limited, a company incorporated in South Africa under registration number
      2015/261614/07;

	 	 
	1.1.60 	
      MS15 Subscription Agreement means the subscription
      agreement between the Company and MS15 pertaining to the subscription by
      MS15 for the MS15 Subscription Shares, entered into simultaneously with
      this Agreement;

	 	 
	1.1.61 	
      MS15 Subscription Price means the MS15
      Subscription Price as defined in the MS15 Subscription
Agreement;

	 	 
	1.1.62 	
      MS15 Subscription Shares means the MS15
      Subscription Shares as defined in the MS15 Subscription
  Agreement;

	 	 
	1.1.63 	
      Net Debt means any contractual obligation for the
      Group pertaining to monies borrowed, including shareholder
  loans:

	1.1.63.1 	
      less cash and cash equivalents (excluding cash received
      from working capital receivables and paid in respect of working capital
      payables outside of the ordinary course of business and Restricted
      Cash);

	 	 
	1.1.63.2 	
      adjusted for working capital payables and working capital
      receivables that are exceptional and outside of the ordinary course of
      business that:

	1.1.63.2.1 	
      are not settled in a timely manner in accordance with
      normal payment terms;

	 	 
	1.1.63.2.2 	
      are unusual, material and non-recurring, and

	 	 
	1.1.63.2.3 	
      whose timely settlement is not restricted by:

	 	 
	1.1.63.2.4 	
      lack of budgetary approvals;

	 	 
	1.1.63.2.5 	
      lack of board approvals;

	 	 
	1.1.63.2.6 	
      lack of regulatory approvals (including that of the
      SARB); or

	 	 
	1.1.63.2.7 	
      lack of bank financing;

	1.1.63.3 	
      adjusted for current and owing income tax assets and/or
      liabilities;

	 	 
	1.1.63.4 	
      adjusted for dividends declared but not
  settled;

- 8 - 

	1.1.63.5 	
      adjusted for any credit deposits advanced by customers
      not covered in the working capital payables or the working capital
      receivables (without double counting); and

	 	 
	1.1.63.6 	
      adjusted for any committed but unpaid capital drawdowns
      due in respect of investments in Associates / joint ventures made by the
      Company.

		
      For the avoidance of doubt, Net Debt shall not include
      financial lease obligations;

	 	 
	1.1.64 	
      Net Debt Confirmation has the meaning given to it
      in clause 5.1.1;

	 	 
	1.1.65 	
      NET1 means Net1 Applied Technologies South Africa
      Proprietary Limited, a company incorporated in accordance with the laws of
      South Africa under registration number 2002/031446/07;

	 	 
	1.1.66 	
      NET1 Subscription Agreement means the subscription
      agreement between the Company and NET1 pertaining to the subscription by
      NET1 for the NET1 Subscription Shares, entered into simultaneously with
      this Agreement;

	 	 
	1.1.67 	
      NET1 Subscription Price means the NET1
      Subscription Price as defined in the NET1 Subscription
Agreement;

	 	 
	1.1.68 	
      NET1 Subscription Shares means the NET1
      Subscription Shares as defined in the NET1 Subscription
  Agreement;

	 	 
	1.1.69 	
      Notice Period has the meaning given to it in
      clause 10.1;

	 	 
	1.1.70 	
      Operative Provisions has the meaning given to it
      in clause 2;

	 	 
	1.1.71 	
      Parties means each of 3C, BLT, NET1, M5, MS15, the
      SPV Subscribers and the Company, and Party means any one of
      them;

	 	 
	1.1.72 	
      Pro Forma Net Debt Statement has the meaning given
      to it in clause 3.1.11;

	 	 
	1.1.73 	
      Proposed Transaction means all the transactions
      contemplated by the Transaction Documents;

	 	 
	1.1.74 	
      Rand or ZAR means South African Rand, the
      lawful currency of South Africa;

	 	 
	1.1.75 	
      Related Person has the meaning given to it in
      Section 2 of the Companies Act;

	 	 
	1.1.76 	
      Restricted Cash means cash and cash equivalents,
      as interpreted under IFRS, which are used as surety, security or
      restricted in some way by a contractual obligation (excluding any cash
      deposited into an account where the release of such cash is only subject
      to providing relevant notice to the financial institution in question).
      Where such restricted cash is used as surety or security in
  respect of a liability, to the extent: (i) such liability is
      treated as monies borrowed; and (ii) such restricted cash can be offset
      against such liability as part of the settlement of that liability, then
      Net Debt shall be stated by netting off the Restricted Cash with the
      associated monies borrowed;

- 9 - 

	 	 
	1.1.77 	
      Return of Airtime Agreement means the agreement
      between the Company, BLT and Cell C SP pertaining to the sale of airtime
      by BLT to Cell C SP;

	 	 
	1.1.78 	
      SARB means the South African Reserve
  Bank;

	 	 
	1.1.79 	
      Schedules means Schedules 1.1.52, 9 and 13.2 to
      this Agreement, and Schedule shall be construed
  accordingly;

	 	 
	1.1.80 	
      Shareholders Agreement means the shareholders
      agreement between the Subscribing Parties and the Company entered into
      simultaneously with the entering into of this Agreement;

	 	 
	1.1.81 	
      Shares means shares in the issued ordinary share
      capital of the Company;

	 	 
	1.1.82 	
      Signature Date means the date on which this
      Agreement is signed by the Party signing last in time;

	 	 
	1.1.83 	
      South Africa means the Republic of South
      Africa;

	 	 
	1.1.84 	
      SPV Subscribers means, collectively, SPV1, SPV2
      and SPV3;

	 	 
	1.1.85 	
      SPV Subscription Agreements means, collectively,
      the SPV1 Subscription Agreement, the SPV2 Subscription Agreement and the
      SPV3 Subscription Agreement;

	 	 
	1.1.86 	
      SPV Subscription Price means the total of the SPV1
      Subscription Price, SPV2 Subscription Price and the SPV3 Subscription
      Price;

	 	 
	1.1.87 	
      SPV Subscription Shares means the total of the
      SPV1 Subscription Shares, SPV2 Subscription Shares and SPV3 Subscription
      Shares;

	 	 
	1.1.88 	
      SPV1 means Cedar Cellular Investment 1 (RF)
      Proprietary Limited, a company incorporated in South Africa under
      registration number 2017/068178/07;

	 	 
	1.1.89 	
      SPV1 MOI means the Agreed Form memorandum of
      incorporation of SPV1 to be adopted with effect from Closing;

	 	 
	1.1.90 	
      SPV1 Subscription Agreement means the subscription
      agreement between the Company and SPV1 pertaining to the subscription by
      SPV1 for the SPV1 Subscription Shares, entered into simultaneously with
      this Agreement;

- 10 - 

	1.1.91 	
      SPV1 Subscription Price means the SPV1
      Subscription Price as defined in the SPV1 Subscription
Agreement;

	 	 
	1.1.92 	
      SPV1 Subscription Shares means the SPV1
      Subscription Shares as defined in the SPV1 Subscription
  Agreement;

	 	 
	1.1.93 	
      SPV2 means Magnolia Cellular Investment 2 (RF)
      Proprietary Limited, a company incorporated in South Africa under
      registration number 2017/068221/07;

	 	 
	1.1.94 	
      SPV2 MOI means the Agreed Form memorandum of
      incorporation of SPV2 to be adopted with effect from Closing;

	 	 
	1.1.95 	
      SPV2 Subscription Agreement means the subscription
      agreement between the Company and SPV2 pertaining to the subscription by
      SPV2 for the SPV2 Subscription Shares, entered into simultaneously with
      this Agreement;

	 	 
	1.1.96 	
      SPV2 Subscription Price means the SPV2
      Subscription Price as defined in the SPV2 Subscription
Agreement;

	 	 
	1.1.97 	
      SPV2 Subscription Shares means the SPV2
      Subscription Shares as defined in the SPV2 Subscription
  Agreement;

	 	 
	1.1.98 	
      SPV3 means Yellowwood Cellular Investment 3 (RF)
      Proprietary Limited, a company incorporated in South Africa under
      registration number 2017/068241/07;

	 	 
	1.1.99 	
      SPV3 MOI means the Agreed Form memorandum of
      incorporation of SPV3 to be adopted with effect from
  Closing;

	1.1.100 	
      SPV3 Subscription Agreement means the subscription
      agreement between the Company and SPV3 pertaining to the subscription by
      SPV3 for the SPV3 Subscription Shares, entered into simultaneously with
      this Agreement; 

	  	     
	1.1.101 	
      SPV3 Subscription Price means the SPV3
      Subscription Price as defined in the SPV3 Subscription Agreement;
  

	  	     
	1.1.102 	
      SPV3 Subscription Shares means the SPV3
      Subscription Shares as defined in the SPV3 Subscription Agreement;
  

	  	     
	1.1.103 	
      Subscribing Parties means BLT, NET1, M5, MS15 and
      the SPV Subscribers, and Subscribing Party means any one of
      them; 

- 11 - 

	1.1.104 	
      Subscription Agreements means the BLT Subscription
      Agreement, the NET1 Subscription Agreement, the M5 Subscription Agreement,
      the MS15 Subscription Agreement and the SPV Subscription Agreements;
    

	  	     
	1.1.105 	
      Subscription Consideration means, collectively the
      BLT Subscription Price, the NET1 Subscription Price, the M5 Subscription
      Price, the MS15 Subscription Price and the SPV Subscription Price;
  

	  	     
	1.1.106 	
      Surviving Provisions has the meaning given to it
      in clause 3.2.2; 

	  	     
	1.1.107 	
      Suspended Provisions has the meaning given to it
      in clause 3.1; 

	  	     
	1.1.108 	
      Takeover Regulation Panel means the Takeover
      Regulation Panel, established pursuant to section 196 of the Companies
      Act; 

	  	     
	1.1.109 	
      Takeover Regulations means the regulations made by
      the Minister in terms of sections 120 and 223 of the Companies Act;
  

	  	     
	1.1.110 	
      Target Net Debt means Net Debt of not more than
      ZAR6,000,000,000 (six billion Rand) immediately following Closing;
  

	  	     
	1.1.111 	
      Tax means all taxes, charges, imports, duties,
      levies, deductions, withholdings or fees of any kind whatsoever, or any
      amount payable on account of or as security for any of the foregoing,
      imposed, levied, collected, withheld or assessed by a Governmental Entity,
      together with any penalties, fines or interest relating thereto, and Taxes
      and Taxation shall be construed accordingly; 

	  	     
	1.1.112 	
      Transaction Documents means this Agreement, the
      Master Implementation Agreement, the BLT Subscription Agreement, the NET1
      Subscription Agreement, the M5 Subscription Agreement, the MS15
      Subscription Agreement, the SPV Subscription Agreements, the Shareholders
      Agreement and the MOI, each as validly amended, substituted, varied,
      novated, revived, replaced, restated and/or supplemented from time to
      time; and 

	  	     
	1.1.113 	
      Undertaking means a company, a body corporate or
      partnership or unincorporated association carrying on trade or business
      with or without a view to profit. In relation to an undertaking which is
      not a company, expressions in this Agreement appropriate to companies are
      to be construed as references to the corresponding persons, officers,
      documents or agents (as the case may be) appropriate to undertakings of
      that description. 

	1.2 	
      Interpretation

	1.2.1 	
      Unless expressly provided to the contrary or inconsistent
      with the context, a reference in this

- 12 - 

Agreement to:

	1.2.1.1 	
      this Agreement or any other agreement, document or
      instrument shall be construed as a reference to this Agreement or that
      other agreement, document or instrument as amended, varied, novated or
      substituted from time to time;

	 	 
	1.2.1.2 	
      a clause, sub-clause or Schedule is
      to a clause, sub-clause or schedule to this Agreement;

	 	 
	1.2.1.3 	
      a person includes any natural person, firm,
      company, corporation, body corporate, juristic person, unincorporated
      association, government, state or agency of a state or any association,
      trust, partnership, syndicate, consortium, joint venture, charity or other
      entity (whether or not having separate legal personality);

	 	 
	1.2.1.4 	
      any one gender, whether masculine, feminine or neuter,
      includes the other two;

	 	 
	1.2.1.5 	
      the singular includes the plural and vice
      versa;

	 	 
	1.2.1.6 	
      a word or expression given a particular meaning includes
      cognate words or expressions;

	 	 
	1.2.1.7 	
      any number of days prescribed shall be determined by
      excluding the first and including the last day or, where the last day is a
      day that is not a Business Day, the next Business Day;

	 	 
	1.2.1.8 	
      a statutory provision includes any subordinate
      legislation made from time to time under that provision and a reference to
      a statutory provision includes that provision as from time to time
      modified or re-enacted as far as such modification or re-enactment
      applies, or is capable of applying, to this Agreement or any transaction
      entered into in accordance with this Agreement;

	 	 
	1.2.1.9 	
      the words including, include or in
      particular followed by specific examples shall be construed by way of
      example or emphasis only and shall not be construed, nor shall it take
      effect, as limiting the generality of any preceding words, and the
      eiusdem generis rule is not to be applied in the interpretation of
      such specific examples or general words; and

	 	 
	1.2.1.10 	
      the words other or otherwise shall not be
      construed eiusdem generis with any foregoing words where a wider
      construction is possible.

	1.2.2 	
      All the headings and sub-headings in this Agreement are
      for convenience and reference only and shall be ignored for the purposes
      of interpreting it.

	 	 
	1.2.3 	
      A term defined in a particular clause or Schedule in this
      Agreement, unless it is clear from the clause or Schedule in question that
      application of the term is to be limited to the relevant clause or
      Schedule bears the meaning ascribed to it for all purposes of in this
      Agreement, notwithstanding that

- 13 - 

		
      that term has not been defined in clause 1.1 and, where
      there is any inconsistency between any term defined in clause 1.1 and any
      term defined in any clause or Schedule in this Agreement, then, for the
      purposes of construing such clause or Schedule the term as defined in such
      clause or Schedule prevails.

	 	 
	1.2.4 	
      No rule of construction may be applied to the
      disadvantage of a Party because that Party was responsible for or
      participated in the preparation of this Agreement or any part of
  it.

	 	 
	1.2.5 	
      If a definition confers substantive rights or imposes
      substantive obligations on a Party, such rights and obligations shall be
      given effect to and are enforceable as substantive provisions of this
      Agreement, notwithstanding that they are contained in that
    definition.

	2. 	
      PROVISIONS WHICH TAKE IMMEDIATE EFFECT

	 	 
		
      The provisions of this clause 2 and clauses 1, 3, 4, 5,
      6, 7, 8 and 10 to 18 (both inclusive) shall take effect and become
      operative immediately upon the Signature Date (the Operative
      Provisions).

	 	 
	3. 	
      CONDITIONS PRECEDENT

	3.1 	
      All the provisions of this Agreement (except for the
      Operative Provisions (such provisions the Suspended Provisions))
      take effect and become operative only upon the fulfilment or waiver of the
      following Conditions by or on 31 August 2017, unless otherwise stipulated
      below (unless otherwise specified or agreed to in writing by the Parties)
      (Long Stop Date):

	3.1.1 	
      any exchange control approval which may be required from
      FinSurv in terms of the Exchange Control Regulations to implement the
      Proposed Transaction is duly obtained in writing in accordance with all
      applicable legal requirements, provided that the Company undertakes to
      apply for such approval as soon as may be reasonably practicable after the
      Signature Date;

	 	 
	3.1.2 	
      the Takeover Regulation Panel grants waivers on the
      application of the Takeover Regulations to the Proposed Transaction, if
      applicable, and that, to the extent applicable and not already obtained,
      all necessary shareholder waivers are obtained by 31 August
2017;

	 	 
	3.1.3 	
      that, by no later than 31 August 2017 (or such later date
      as may be agreed in writing between the Company, NET1 and BLT), the
      shareholders of BLT Parent have passed, to the extent necessary, the
      resolutions required in terms of the Companies Act and the Listings
      Requirements to approve and implement, inter alia, the Proposed
      Transaction and the entering into of this Agreement, including the
      following resolutions:

- 14 - 

	3.1.3.1 	
      an ordinary resolution approving the implementation of
      the Proposed Transaction as a ”Category 1” transaction under the Listings
      Requirements; and

	 	 
	3.1.3.2 	
      an ordinary resolution authorising any director of BLT
      Parent to take all actions necessary and sign all documents required to
      give effect to the resolutions listed in this
clause,

		
      it being agreed that the Company shall, by 30 June 2017,
      deliver to BLT Parent the reporting accountant’s report as well as certain
      reviewed financial information in respect of the period ending 31 December
      2016 as may reasonably be required by BLT Parent in order to prepare its
      shareholder circular to obtain the approvals envisaged in this clause
      3.1.3;

	 	 
	3.1.4 	
      that the Parties obtain all such regulatory approvals as
      may be required by Applicable Law in order to implement the Proposed
      Transaction;

	 	 
	3.1.5 	
      that, by no later than 3 (three) Business Days prior to
      the Implementation Date (or such later date as may be agreed in writing by
      the Company, BLT and NET1), BLT provides the other Parties with written
      confirmation that it has raised the required funding to pay the BLT
      Subscription Price as set out in this Agreement and the BLT Subscription
      Agreement;

	 	 
	3.1.6 	
      that, by no later than 3 (three) Business Days prior to
      the Implementation Date (or such later date as may be agreed in writing by
      the Company, BLT and NET1), NET1 provides the other Parties with written
      confirmation that it has raised the required funding to pay the NET1
      Subscription Price as set out in this Agreement and the NET1 Subscription
      Agreement;

	 	 
	3.1.7 	
      that, by no later than 2 (two) days prior to the
      Implementation Date, the Company has procured that all documents required
      in order to register the MOI with CIPC are duly lodged with CIPC in order
      for the MOI to be registered with effect from the Implementation Date. The
      Parties undertake that, to the extent that the MOI is not registered with
      CIPC following the Implementation Date, they will use their reasonable
      endeavours to ensure that all such amendments are agreed and made to the
      MOI in order to address all concerns raised by CIPC in order for the MOI
      to be acceptable to CIPC for registration;

	 	 
	3.1.8 	
      that, by no later than 2 (two) days prior to the
      Implementation Date, SPV1 has procured that all documents required in
      order to register the SPV1 MOI with CIPC are duly lodged with CIPC in
      order for the SPV1 MOI to be registered with effect from the
      Implementation Date. The Parties undertake that, to the extent that the
      SPV1 MOI is not registered with CIPC following the Implementation Date,
      they will use their reasonable endeavours to ensure that all such
      amendments are agreed and made to the SPV1 MOI in order to address all
      concerns raised by CIPC in order for the SPV1 MOI to be acceptable to CIPC
      for registration;

- 15 - 

	3.1.9 	
      that, by no later than 2 (two) days prior to the
      Implementation Date, SPV2 has procured that all documents required in
      order to register the SPV2 MOI with CIPC are duly lodged with CIPC in
      order for the SPV2 MOI to be registered with effect from the
      Implementation Date. The Parties undertake that, to the extent that the
      SPV2 MOI is not registered with CIPC following the Implementation Date,
      they will use their reasonable endeavours to ensure that all such
      amendments are agreed and made to the SPV2 MOI in order to address all
      concerns raised by CIPC in order for the SPV2 MOI to be acceptable to CIPC
      for registration;

	 	 
	3.1.10 	
      that, by no later than 2 (two) days prior to the
      Implementation Date, SPV3 has procured that all documents required in
      order to register the SPV3 MOI with CIPC are duly lodged with CIPC in
      order for the SPV3 MOI to be registered with effect from the
      Implementation Date. The Parties undertake that, to the extent that the
      SPV3 MOI is not registered with CIPC following the Implementation Date,
      they will use their reasonable endeavours to ensure that all such
      amendments are agreed and made to the SPV3 MOI in order to address all
      concerns raised by CIPC in order for the SPV3 MOI to be acceptable to CIPC
      for registration;

	 	 
	3.1.11 	
      that the Company delivers a written pro forma statement
      (signed by the Chief Executive Officer and the Chief Financial Officer of
      the Company) to BLT, NET1 and the SPV Subscribers, accompanied by a
      confirmatory certificate from the auditors of the Company, estimating the
      Net Debt and composition thereof immediately following Closing and
      confirming that the Net Debt shall not exceed the Target Net Debt (Pro
      Forma Net Debt Statement). The Pro Forma Net Debt Statement shall be
      accompanied by a working capital schedule reflecting a detailed breakdown
      of the Company’s working capital payables and the working capital
      receivables as at 30 June 2017;

	 	 
	3.1.12 	
      that, by no later than 5 (five) days after receipt of the
      Pro Forma Net Debt Statement and other documents referred to in clause
      3.1.11 (or such later date as may be agreed between the Company, BLT and
      NET1), each of BLT and NET1 confirms to the Company in writing that it is
      satisfied with the composition of the Net Debt as it is proposed to be
      constituted immediately following Closing and as it is reflected in the
      Pro Forma Net Debt Statement. The Company irrevocably and unconditionally
      undertakes to:

	3.1.12.1 	
      consult with and include BLT and NET1 in discussions and
      negotiations around the Group's debt refinancing; and

	 	 
	3.1.12.2 	
      provide BLT and NET1 with all documents reasonably
      necessary or as otherwise reasonably requested by BLT and NET1 to enable
      BLT and NET1 to assess the composition and quantum of the Net
  Debt;

- 16 - 

	3.1.13 	
      that the Company confirms to BLT and NET1 in writing that
      none of the following licences of the Company (or any other material
      licence, permit or approval required by the Company or any other Group
      Company to conduct their respective businesses as they were conducted on
      30 November 2016) have lapsed, been revoked, permanently suspended or
      cancelled (nor has the Company or any other Group Company received any
      notice by any Governmental Entity to revoke, suspend or cancel any such
      licence, permit or approval, nor does the Company or any other Group
      Company have any actual knowledge of any matter which could reasonably be
      expected to invalidate any such licence, permit or approval after
      Closing):

	3.1.13.1 	
      radio frequency spectrum licence with number 00-476-898-6
      for the use of 900MHz and 1,800MHz radio frequency spectrum;

	 	 
	3.1.13.2 	
      radio frequency spectrum licence with number 00-495-213-2
      for the use of 2,100MHz radio frequency spectrum;

	 	 
	3.1.13.3 	
      radio frequency spectrum licence with number 00-529-438-0
      for the use of 7GHz radio frequency spectrum;

	 	 
	3.1.13.4 	
      10.5GHz fixed link network licence;

	 	 
	3.1.13.5 	
      15GHz fixed link network licence;

	 	 
	3.1.13.6 	
      38GHz fixed link network licence;

	 	 
	3.1.13.7 	
      individual electronic communications network service
      licence, with number 001/IECNS/JAN/2009; and

	 	 
	3.1.13.8 	
      individual electronic communications service licence,
      with number 001/IECS/JAN/2009;

	3.1.14 	
      that the Return of Airtime Agreement is entered into by
      the parties thereto and has become fully unconditional in accordance with
      its terms (save for any condition requiring this Agreement to become
      unconditional);

	 	 
	3.1.15 	
      that the Company Indemnity Agreement is entered into by
      the parties thereto and has become fully unconditional in accordance with
      its terms (save for any condition requiring this Agreement to become
      unconditional);

	 	 
	3.1.16 	
      that each of BLT and NET1, as soon as may be reasonably
      practicable after receiving the Litigation List (as defined below),
      confirms to the Company in writing that it does not object to any
      litigation reflected in the Litigation List. In order to enable BLT and
      NET1 to provide the aforementioned confirmation, the Company shall, as
      soon as reasonably practicable after the Signature
Date, provide BLT and NET1 with written
details, which shall include a reasonable description of such matters,
(Litigation List) of: 

- 17 - 

 

	3.1.16.1 	
      any Insolvency Event (as defined in the Shareholders
      Agreement) having occurred in respect of any member of the
Group;

	 	 
	3.1.16.2 	
      all instituted and outstanding litigation and
      applications as well as all pending litigation and applications where
      pending litigation and applications shall be such matters: (i) where the
      relevant third party (not being BLT Parent or any Affiliate thereof) has
      made a formal or written demand in writing indicating that relevant
      proceedings will be instituted; or (ii) which the Company reasonably
      believes will be instituted), pursuant to which an Insolvency Event (as
      defined in the Shareholders Agreement) may reasonably occur in respect of
      any member of the Group; and

	 	 
	3.1.16.3 	
      all instituted and outstanding litigation and pending
      litigation, where pending litigation shall be such matters: (i) where the
      relevant third party (not being BLT Parent or any Affiliate thereof) has
      made a formal or written demand in writing indicating that relevant
      litigation proceedings will be instituted; or (ii) which the Company
      reasonably believes will be instituted, between the direct or indirect
      shareholders of 3C where the Company or any other member of the Group is a
      party to such proceedings;

	3.1.17 	
      that, to the extent that any additional litigation arises
      that meet the criteria for inclusion in the Litigation List between the
      date of the Litigation List and the date on which all the other Conditions
      are fulfilled, the Company shall be obliged to notify BLT and NET1 in
      writing of such additional litigation as soon as may be reasonably
      practicable and that each of BLT and NET1 confirms to the Company in
      writing that it does not object to such litigation;

	 	 
	3.1.18 	
      that the Master Implementation Agreement is entered into
      by the parties thereto and has become fully unconditional in accordance
      with its terms (save for any condition requiring this Agreement or any
      such other Transaction Document to become unconditional); and

	 	 
	3.1.19 	
      that all of the Transaction Documents are entered into by
      the parties thereto and have become fully unconditional in accordance with
      their terms (save for any condition requiring this Agreement or any such
      other Transaction Document to become
unconditional).

	3.2 	
      If any one or more of the Conditions are not fulfilled or
      not waived (as applicable) prior to the date and time stipulated for
      fulfilment or waiver thereof, then the Suspended Provisions shall not take
      effect and this Agreement shall terminate automatically without any
      further action required by any of the Parties. In the event that this
      Agreement is validly terminated in accordance with this clause 3.2, each
      of the Parties shall be relieved of its
respective duties and obligations arising in terms of this Agreement from and
after the date of such termination, and such termination shall be without
liability to any other Party, provided that: 

- 18 - 

 

	3.2.1 	
      no such termination shall relieve any Party from
      liability (including any liability for damages) for any breach of this
      Agreement or other liability arising prior to termination hereof;
    and

	 	 
	3.2.2 	
      the provisions and/or obligations of the Parties set out
      in this clause 3.2 and clauses 1 and 10 to 18 (both inclusive) of this
      Agreement (Surviving Provisions) shall survive any such termination
      and shall be enforceable in terms of this
Agreement.

	3.3 	
      The Conditions set out in:

	3.3.1 	
      clauses 3.1.1, 3.1.2, 3.1.3 and 3.1.4 may not be
      waived;

	 	 
	3.3.2 	
      clauses 3.1.5 and 3.1.14 are stipulated for the benefit
      of BLT and BLT shall consequently be entitled to waive them, in whole or
      in part, at any time on or before the stipulated date for fulfilment,
      provided that no such waiver shall be effective unless it is in writing
      and notified to NET1 and the Company;

	 	 
	3.3.3 	
      clause 3.1.6 is stipulated for the benefit of NET1 and
      NET1 shall consequently be entitled to waive it, in whole or in part, at
      any time on or before the stipulated date for fulfillment, provided that
      no such waiver shall be effective unless it is in writing and notified to
      BLT and the Company;

	 	 
	3.3.4 	
      clauses 3.1.11, 3.1.12, 3.1.13, 3.1.16 and 3.1.17 are
      stipulated for the benefit of NET1 and BLT who may be entitled to waive
      them, in whole or in part, at any time on or before the stipulated date
      for fulfilment;

	 	 
	3.3.5 	
      clauses 3.1.7, 3.1.8, 3.1.9 and 3.1.10 are stipulated for
      the benefit of the Subscribing Parties and the Subscribing Parties shall
      consequently jointly be entitled to waive them, in whole or in part, at
      any time on or before the stipulated date for fulfilment, provided that
      the Subscribing Parties agree thereto in writing;

	 	 
	3.3.6 	
      clause 3.1.15 is stipulated for the benefit of 3C who may
      waive it, in whole or in part, at any time on or before the stipulated
      date for fulfilment; and

	 	 
	3.3.7 	
      clauses 3.1.18 and 3.1.19 are stipulated for the benefit
      of all of the Parties and the Parties shall consequently jointly be
      entitled to waive them, in whole or in part, at any time on or before the
      stipulated date for fulfilment, provided that the Parties agree thereto in
      writing.

- 19 - 

	3.4 	
      The Parties shall use their reasonable endeavours,
      co-operate with each other and provide all such assistance as may be
      reasonably required of each other to bring about the fulfilment of the
      Conditions and the Parties shall further comply with their respective
      obligations under clause 4.

	 	 
	3.5 	
      Following fulfilment or waiver of the Conditions, each of
      the Parties shall procure that its Designated Representative provides the
      necessary confirmation of such fact to the Funds Flow Bank as provided for
      the Master Implementation Agreement.

	4. 	
      TRANSACTION
UNDERTAKINGS

	4.1 	
      Each Party undertakes to each other Party to, and to
      procure (so far as they are legally able), that their Affiliates, take all
      reasonable steps and use all reasonable endeavours to consummate the
      Proposed Transaction including complying with all of the obligations set
      out in the applicable Transaction Documents.

	 	 
	4.2 	
      By no later than 5 (five) Business Days after the
      Signature Date:

	4.2.1 	
      in respect of the Company, the Company shall deliver to
      the Subscribing Parties a certified copy of the minutes of a meeting of
      the Board of Directors authorising the execution by the appropriate
      signatories by and on behalf of the Company of the Transaction Documents
      to which it is a party, and the performance by the Company of its
      obligations thereunder;

	 	 
	4.2.2 	
      in respect of 3C, 3C shall deliver to the other
      Subscribing Parties a certified copy of the written resolutions of the
      board of directors of 3C authorising the execution by the appropriate
      signatories by and on behalf of 3C of the Transaction Documents to which
      it is a party, and the performance by 3C of its obligations
    thereunder;

	 	 
	4.2.3 	
      as the sole shareholder of the Company, 3C shall deliver
      to the other Subscribing Parties a certified copy of the minutes of a
      meeting of 3C as the sole shareholder of the Company authorising, among
      other things, the waiver of the statutory pre-emptive rights, conversion
      of the entire number of ordinary shares in the Company from shares having
      a par value to shares having no par value, the increase in the Company’s
      number of authorised shares, the issue of shares with voting power in
      excess of 30% (thirty per cent) of the voting power of all of the ordinary
      shares of the Company and the adoption of a new MOI;

	 	 
	4.2.4 	
      in respect of BLT, BLT shall deliver to the other
      Subscribing Parties a certified copy of the minutes of a meeting of the
      board of directors of BLT authorising the execution by the appropriate
      signatories by and on behalf of BLT of the Transaction Documents to which
      it is a party, and the performance by BLT of its obligations
      thereunder;

- 20 - 

	4.2.5 	
      in respect of NET1, NET1 shall deliver to the other
      Subscribing Parties a certified copy of the minutes of a meeting of the
      board of directors of NET1 authorising the execution by the appropriate
      signatories by and on behalf of NET1 of the Transaction Documents to which
      it is a party, and the performance by NET1 of its obligations
      thereunder;

	 	 
	4.2.6 	
      in respect of MS15, MS15 shall deliver to the other
      Subscribing Parties a certified copy of the minutes of a meeting of the
      board of directors of MS15 authorising the execution by the appropriate
      signatories by and on behalf of MS15 of the Transaction Documents to which
      it is a party, and the performance by MS15 of its obligations
      thereunder;

	 	 
	4.2.7 	
      in respect of SPV1, SPV1 shall deliver to the other
      Subscribing Parties a certified copy of the minutes of a meeting of the
      board of directors of SPV1 authorising the execution by the appropriate
      signatories by and on behalf of SPV1 of the Transaction Documents to which
      it is a party, and the performance by SPV1 of its obligations
      thereunder;

	 	 
	4.2.8 	
      in respect of SPV2, SPV2 shall deliver to the other
      Subscribing Parties a certified copy of the minutes of a meeting of the
      board of directors of SPV2 authorising the execution by the appropriate
      signatories by and on behalf of SPV2 of the Transaction Documents to which
      it is a party, and the performance by SPV2 of its obligations thereunder;
      and

	 	 
	4.2.9 	
      in respect of SPV3, SPV3 shall deliver to the other
      Subscribing Parties a certified copy of the minutes of a meeting of the
      board of directors of SPV3 authorising the execution by the appropriate
      signatories by and on behalf of SPV3 of the Transaction Documents to which
      it is a party, and the performance by SPV3 of its obligations
      thereunder.

	4.3 	
      Without derogating from clause 6, each Party further
      undertakes to each other Party that neither it, nor any of its Affiliates,
      shall, before Closing (other than as necessary to effect the Proposed
      Transaction), enter into any agreement or arrangement, incur any
      obligation, give any indication of intent or take or omit to take any
      action which is designed to:

	4.3.1 	
      restrict or impede it or any of its Affiliates from
      complying with its obligations under this Agreement or any of the other
      applicable Transaction Documents; or

	 	 
	4.3.2 	
      be incompatible with completion of the Proposed
      Transaction.

- 21 - 

	5. 	
      NET DEBT CONFIRMATION

	5.1 	
      No later than 5 (five) Business Days after the
      Implementation Date, the Company shall:

	5.1.1 	
      prepare (or cause to be prepared) and issue (or cause to
      be issued) a confirmation (signed by both the Chief Executive Officer and
      the Chief Financial Officer of the Company) of the Net Debt immediately
      following Closing and as at the Implementation Date (the Net Debt
      Confirmation) setting out the composition of the Net Debt and confirming
      that: (i) the Net Debt does not exceed the Target Net Debt following
      Closing; and (ii) the terms of the Net Debt are materially the same as the
      terms of the estimated Net Debt reflected in the Pro Forma Net Debt
      Statement, unless otherwise agreed to in writing with BLT and
  NET1;

	 	 
	5.1.2 	
      procure delivery of the Net Debt Confirmation to each of
      the Subscribing Parties; and

	 	 
	5.1.3 	
      procure that the Net Debt Confirmation be accompanied by
      a certificate by the auditors of the Company confirming that the Net Debt
      does not exceed the Target Net Debt following
Closing.

	5.2 	
      The Company warrants to BLT and NET1 that the Net Debt
      (excluding any drawn down portion of the facilities provided to the
      Company by ZTE Corporation, Huawei Technologies Co. Limited or BLT up to
      an amount of ZAR700,000,000 (seven hundred million Rand) as at the
      Implementation Date) will not exceed the Target Net Debt immediately
      following Closing on the Implementation Date.

	6. 	
      CONDUCT OF BUSINESS

	6.1 	
      Subject to clauses 6.2 and 6.3 and during the Interim
      Period, the Company shall ensure that the Business is carried on in
      substantially the usual and ordinary course and as prescribed by any
      Applicable Law and that no Group Company shall enter into any material
      contract or commitment or do anything which, in any such case, is either
      out of the ordinary or usual course of its Business or of a material
      nature without obtaining the prior joint written consent of BLT, NET1,
      MS15 and M5 (as envisaged below), which consent shall not be unreasonably
      withheld or delayed.

	 	 
	6.2 	
      In particular, but without limitation (except as
      permitted or required under clause 6.1), the Company shall ensure and, to
      the extent that the relevant matter is referred to the Board of Directors
      for consideration, 3C shall procure that, during the Interim Period, save:
      (i) with such joint consent of BLT, NET1, MS15 and M5 (which consent shall
      not be unreasonably withheld or delayed), provided that such request for
      consent is in writing; and (ii) as may be required to prepare for or
      effect the transactions envisaged in the Transaction Documents and the
      Proposed Transaction in general, none of the Group Companies
  shall:

	6.2.1 	
      manage its business other than in accordance with its
      business and trading policies and practices to

- 22 - 

		
      date, except as may be necessary to comply with any
      changes in Applicable Law;

	 	 
	6.2.2 	
      declare, pay or make any dividend or
  distribution;

	 	 
	6.2.3 	
      redeem or repurchase any shares or return any capital to
      any shareholder;

	 	 
	6.2.4 	
      enter into any material transaction other than on arms’
      length terms and for full and proper consideration;

	 	 
	6.2.5 	
      grant or agree to grant any material loans or other
      financial debt to or any guarantees or indemnities for the benefit of any
      person or create or allow to subsist any mortgage, charge or other
      Encumbrance over the whole or any part of its undertaking, property or
      assets, other than the granting or agreement to grant financial debt in
      the form of capital expenditure financing in the ordinary course of
      business;

	 	 
	6.2.6 	
      amend the terms and conditions of the employment
      contracts of any member of M5, other than changes or amendments resulting
      from the Company’s annual salary review in the ordinary or usual course of
      Business;

	 	 
	6.2.7 	
      make or agree to any material amendment, variation,
      deletion, addition, renewal or extension to or of, terminate or give any
      notice or intimation of termination of, or breach or fail to comply with
      the material terms of any material contract;

	 	 
	6.2.8 	
      dispose of any material Affiliates (other than FibreCo
      Telecommunications Holdings Proprietary Limited);

	 	 
	6.2.9 	
      assume or incur any liabilities out of the ordinary
      course of business (or give any indemnity in respect
  thereof);

	6.2.10 	
      assume or incur any liabilities (directly or indirectly)
      for the benefit of any member of 3C, M5, MS15 or their respective
      Affiliates or Related Persons;

	 	 
	6.2.11 	
      make any changes to the Accounting Principles of any of
      the Group Companies;

	 	 
	6.2.12 	
      fail to renew all material licenses (which shall include
      those in clause 3.1.13) or fail to comply with the provisions
    thereof;

	 	 
	6.2.13 	
      issue or create any shares other than as set out in the
      Transaction Documents;

	 	 
	6.2.14 	
      action or implement any of the matters set out in clause
      5.5.2 (Reserved Matters) of the MOI;

	 	 
	6.2.15 	
      amend any of the Transaction Documents to which they are
      a party; or

- 23 - 

	6.2.16 	
      transfer or permit the transfer of any shares in any
      Group Company, save as may be permitted or envisaged in the Transaction
      Documents.

	6.3 	
      For purposes of this clause 6, material shall
      exclude any transaction, agreement or matter which falls within: (i) the
      approved budget for the Group for the 2017 financial year approved by the
      Board of Directors on 26 January 2017; and (ii) the delegation of
      authority of the Chief Executive Officer of the Company stamped by the
      company secretary for identification purposes (it being agreed that such
      delegation of authority may not be amended during the Interim Period
      without the consent of all the Subscribing Parties, which consent shall
      not be unreasonably withheld or delayed).

	 	 
	6.4 	
      The Parties agree that, during the Interim Period, each
      of BLT, NET1 and 3C shall be provided with Management Accounts as soon as
      reasonably practicable following the end of each calendar month but in any
      event no later than 20 (twenty) days thereafter.

	 	 
	6.5 	
      Without derogating from any other provision hereof or any
      other Transaction Document, each of the Parties undertakes to forthwith
      notify the other of them in writing should they become aware of any of the
      undertakings, representations and/or warranties contained in the
      Transaction Documents being breached.

	 	 
	6.6 	
      The Company represents and warrants to BLT and NET1 that
      none of the events or matters listed in clause 6.2 has occurred or has
      been implemented in contravention of the provisions of clause 6.2 from 30
      November 2015 up to the Signature Date, other than those that have been
      notified to BLT and NET1 in writing prior to the Signature
  Date.

	7. 	
      PRE-CLOSING COVENANTS

	7.1 	
      During the Interim Period, 3C shall exercise its
      shareholding rights, whether directly or indirectly, and other powers of
      influence and control and otherwise use its reasonable endeavours to cause
      each member of the Group to comply with the obligations set out in clause
      6.

	 	 
	7.2 	
      The Parties shall negotiate in good faith, with a view to
      agreeing before Closing, the final form of any Transaction Document which
      is not in Agreed Form at the date of this
Agreement.

	8. 	
      PRE-CLOSING MEETING

	8.1 	
      The Parties agree that they, and shall procure that their
      respective financial and legal advisors (if any), shall meet at 10h00 2
      (two) Business Days prior to the Implementation Date at the Sandton,
      Johannesburg offices of Bowmans, or such other appropriate time or venue
      as the Parties may agree upon in writing in order to prepare for
      Closing.

- 24 - 

	8.2 	
      At the meeting referred to in clause 8.1, the Parties and
      their respective advisors (if any) shall ensure that all outstanding items
      necessary for a successful Closing on the Implementation Date are
      implemented and/or finalised. The Parties undertake to use their
      reasonable endeavours to ensure that all such outstanding items are dealt
      with efficiently and in such a manner as will ensure a successful Closing
      on the Implementation Date.

	9. 	
      CLOSING

	9.1 	
      Closing of this Agreement and the other Transaction
      Documents shall happen on the Implementation Date and as set out in the
      Master Implementation Agreement.

	 	 
	9.2 	
      At Closing, the relevant Parties shall deliver or perform
      (or ensure that there is delivered or performed) all those documents,
      items and actions respectively listed in relation to that Party or any of
      their Affiliates (as the case may be) in each of the Transaction
      Documents, the Master Implementation Agreement and Schedule
    9.

	10. 	
      BREACH AND TERMINATION

	10.1 	
      If a Party (Defaulting Party) commits any breach
      of this Agreement and fails to remedy such breach within 20 (twenty)
      Business Days (Notice Period) of written notice requiring the
      breach to be remedied, then the Party giving the notice (Aggrieved
      Party) will be entitled, at its option:

	10.1.1 	
      to claim immediate specific performance of all or any of
      the Defaulting Party's obligations under this Agreement, with or without
      claiming damages, whether or not such obligation has fallen due for
      performance and to require the Defaulting Party to provide security to the
      satisfaction of the Aggrieved Party for the Defaulting Party's
      obligations; or

	 	 
	10.1.2 	
      to cancel this Agreement, with or without claiming
      damages, in which case written notice of the cancellation shall be given
      to the Defaulting Party, and the cancellation shall take effect on the
      giving of the notice. No Party shall be entitled to cancel this Agreement
      unless the breach is a material breach. A breach will be deemed to be a
      material breach if:

	10.1.2.1 	
      it is capable of being remedied, but is not so remedied
      within the Notice Period; or

	 	 
	10.1.2.2 	
      it is incapable of being remedied and payment in money
      will compensate for such breach but such payment is not made once finally
      determined,

provided that, without derogating from
clauses 10.1.1 and 10.1.2, the Implementation Date shall be postponed to the
second Business Day following the expiry of the Notice Period in the event that
the Implementation Date is scheduled to occur prior to the end of any Notice
Period. 

- 25 - 

	10.2 	
      The Parties agree that any costs awarded will be
      recoverable on an attorney-and-own-client scale unless the arbitrators or
      the court, as the case may be, specifically determine that such scale
      shall not apply, in which event the costs will be recoverable in
      accordance with the High Court tariff, determined on an
      attorney-and-client scale.

	 	 
	10.3 	
      The Aggrieved Party's remedies in terms of this clause 10
      are without prejudice to any other remedies to which the Aggrieved Party
      may be entitled in law.

	 	 
	10.4 	
      Notwithstanding the aforegoing, after Closing, none of
      the Parties will have the right to cancel this Agreement or any other
      Transaction Document as a result of a breach
thereof.

	11. 	
      WARRANTIES

	 	 
		
      Each Party represents and warrants to each other Party,
      severally but not jointly (and solely with respect to itself), as at the
      Signature Date and the Implementation Date,
that:

	11.1 	
      all necessary corporate actions have been taken to
      authorise its entry into this Agreement and all Transaction Documents to
      which it is a party and its carrying out of the Proposed Transaction
      contemplated in this Agreement;

	 	 
	11.2 	
      it has the right, power and authority, and has taken all
      action necessary, to execute, deliver and exercise its rights, and perform
      its obligations, under this Agreement and all the Transaction Documents to
      which it is a party;

	 	 
	11.3 	
      its obligations under this Agreement and all the
      Transaction Documents to which it is a party are, or when the relevant
      document is executed will be, enforceable in accordance with their terms
      against the Company;

	 	 
	11.4 	
      this Agreement and all Transaction Documents to which it
      is a party constitute its legal, valid and binding obligations,
      enforceable against it in accordance with the terms set out in this
      Agreement and the Transaction Documents to which it is a party;
  and

	 	 
	11.5 	
      neither its execution of this Agreement and the
      Transaction Documents to which it is a party nor the carrying out by it of
      the Proposed Transaction contravenes or will
contravene:

	11.5.1 	
      any law or order by any government agency binding on it
      or its property; and

	 	 
	11.5.2 	
      any agreement, undertaking or instrument binding on it or
      any of its property.

- 26 - 

	12. 	
      ANNOUNCEMENTS AND
CONFIDENTIALITY

	12.1 	
      For purposes of this Agreement, Confidential
      Information shall mean all written and/or tangible information related
      to this Agreement and information and/or data created by the Company or by
      any of the Parties or their Affiliates and disclosed by either the Company
      or any Party or its Affiliate to another Party or such Party's Affiliate
      which is confidential, proprietary and/or not generally available to the
      public, including, but not limited to, information relating in whole or in
      part to the Company, including present and future services, business plans
      and strategies, marketing ideas and concepts, especially with respect to
      unannounced services, present and future business plans, marketing plans,
      sales strategies, customer information, development plans, customer
      requirements, or other technical and business information.

	 	 
	12.2 	
      The Parties shall not, and each Party shall use all
      reasonable endeavours to procure that every Affiliate of such Party shall
      not, disclose to any Person or use (other than in connection with claims
      against such Parties in respect of any breach of their obligations and
      duties under this Agreement or other documents related thereto or
      otherwise enforcing any right) any Confidential Information which may have
      come to its or their knowledge, provided however that in respect of each
      Party (or Affiliates thereto) the foregoing obligations shall not apply to
      the disclosure of Confidential Information if and to the
  extent:

	12.2.1 	
      disclosure is required by law or for the purpose of any
      judicial proceedings or by any Governmental Entity if (to the extent
      practicable) prior notice is given to the other Parties;

	 	 
	12.2.2 	
      that a Party is obliged to make such disclosure in terms
      of the Companies Act or any other law or enactment, or the Listings
      Requirements or the rules and regulations of any other stock exchange or
      any other regulator having jurisdiction, provided that the Party in
      question shall, where possible and provided that it will not delay the
      Party concerned from complying with its obligations, consult with the
      other Parties before making any such announcement or statement;

	 	 
	12.2.3 	
      the Confidential Information is disclosed by a Party in
      connection with judicial or arbitral proceedings (and only to the extent
      it is used in the proceedings), brought by any Party for the purposes of
      enforcing the provisions of this Agreement;

	 	 
	12.2.4 	
      the Confidential Information is or becomes generally
      available to the public other than as a result of a breach of any
      undertaking or duty of confidentiality by any Person;

	 	 
	12.2.5 	
      the Confidential Information is disclosed on a
      confidential basis by a Party to its Affiliates and their advisers,
      representatives, directors, shareholders, auditors or bankers for the
      purposes of its business;

- 27 - 

	12.2.6 	
      the Confidential Information is disclosed by 3C to its
      Affiliates and holding companies for announcement purposes through its
      usual reporting lines;

	 	 
	12.2.7 	
      the Confidential Information is disclosed on a
      confidential basis by the Parties, their Affiliates and/or the Company for
      the taking of any action contemplated by this Agreement or related
      documentation;

	 	 
	12.2.8 	
      disclosure is by a Party to one of its Affiliates which
      accepts or is otherwise subject to reasonable confidentiality
      restrictions; or

	 	 
	12.2.9 	
      the other Parties have given their prior written consent
      to the contents and the manner of the disclosure by a Party (not to be
      unreasonably withheld or delayed).

	12.3 	
      Nothing in this clause 12 will prohibit any Party from
      utilising information which it is able to
show:

	12.3.1 	
      was lawfully in its possession at the time of
    receipt;

	 	 
	12.3.2 	
      was at the time of receipt part of the public domain or
      lawfully after receipt became part of the public domain;

	 	 
	12.3.3 	
      was lawfully received from a third party entitled to
      possess and disclose that information;

	 	 
	12.3.4 	
      was disclosed to a potential purchaser of the Shares and
      the potential purchaser has entered into a confidentiality agreement with
      the Company to its reasonable satisfaction prior to such disclosure;
    or

	 	 
	12.3.5 	
      was required by law or any securities exchange or
      regulatory or Governmental Entity to which any Party is subject, wherever
      situated, whether or not the requirement for information has the force of
      law, provided that the Party required to make the disclosure has taken all
      reasonable steps to oppose or prevent the disclosure and to limit, as far
      as reasonably possible, the extent of such disclosure and, additionally,
      has given the other Parties reasonable notice of the required disclosure
      and a reasonable opportunity to participate in opposing, preventing or
      limiting the disclosure.

	12.4 	
      Save as set out in clause 12.2.2, no Party shall make any
      announcement or statement about this Agreement, or its contents or the
      Proposed Transaction without first having obtained the other Parties’
      prior written consent to the announcement or statement and to its
      contents, provided that such consent may not be unreasonably
    withheld.

	 	 
	12.5 	
      Parties acknowledge that damages would not be a
      sufficient remedy for any breach of this clause 12 and each Party will be
      entitled to the remedy of injunction, specific performance and other
      equitable relief for any threatened or actual breach, in addition to any
      damages or other remedy to which it may be entitled and no proof of
      special damages will be necessary for the enforcement of this
      Agreement.

- 28 - 

	13. 	
      INDEPENDENT EXPERT
DETERMINATION

	13.1 	
      Subject to clause 14.1, any dispute, claim or controversy
      arising out of or in connection with this Agreement shall, if either this
      Agreement expressly provides for determination by an Independent Expert or
      the Parties agree in writing that such dispute, claim or controversy is of
      a financial or accounting nature, be resolved in accordance with this
      clause. In any other case, the matter shall be resolved in accordance with
      clause 14.

	 	 
	13.2 	
      Any Party may give notice to the others requiring the
      matter to be referred to an independent expert (the Independent
      Expert), which Independent Expert shall be selected from the agreed
      list of investment banks attached as Schedule 13.2 to this
      Agreement, provided that the Independent Expert shall be one of Deloitte,
      PricewaterhouseCoopers, Ernst & Young or KPMG if the dispute in
      question relates to the calculation of Net Debt. The Parties shall appoint
      the Independent Expert by agreement within 10 (ten) Business Days of such
      notice requiring the matter to be referred to the Independent Expert. In
      the event that the Parties are unable to agree upon which Independent
      Expert to appoint, within a period of 10 (ten) Business Days of the date
      of the notice, then the Independent Expert shall be appointed by the
      President for the time being of the South African Institute of Chartered
      Accountants on the application of any Party within 10 (ten) Business Days
      of such notice.

	 	 
	13.3 	
      The Independent Expert shall be required to accept
      written and oral submissions from each of the Parties to the dispute, and
      shall, subject to making the necessary arrangements with regard to
      confidentiality, be entitled to engage and consult any appropriately
      qualified professionals, the costs of which shall be paid by the Parties
      to the dispute in accordance with clause 13.6. All documents and
      information provided to the Independent Expert by any Party must also
      simultaneously be provided to all other Parties. In this regard the
      Parties record their intention that, where appropriate and insofar as
      legal matters are concerned, and in reaching his determination, the
      Independent Expert may engage the services of an advocate with at least 10
      (ten) years of post-pupillage experience in commercial matters.

	 	 
	13.4 	
      Each of the Parties agrees to execute, if requested by
      the Independent Expert, an engagement letter containing terms and
      conditions that are reasonably requested by an Independent Expert, and
      further that each of them shall co-operate with the Independent Expert and
      promptly provide all documents and information reasonably requested by the
      Independent Expert.

	 	 
	13.5 	
      The Independent Expert shall be bound by the terms and
      methodologies set out in this Agreement and act as an expert and not as an
      arbitrator and his or her decision shall (in the absence of manifest
      error) be final and binding on the Parties. The Independent Expert shall
      afford the Parties the opportunity of making written representations to
      him or her. The Independent Expert shall use its best endeavours
  to ensure that a determination on any matter referred to it
      is made within a period of 20 (twenty) Business Days following receipt by
      it of all the required documents and submissions entered into in clause
      13.4.

- 29 - 

	 	 
	13.6 	
      The fees and expenses of the Independent Expert shall be
      borne by the Parties in equal shares unless the Independent Expert
      otherwise determines.

	14. 	
      DISPUTE RESOLUTION

	14.1 	
      In the event of any dispute arising out of or relating to
      this Agreement or any of the Transaction Documents, or the breach,
      termination or invalidity thereof, any Party may invite the other(s) in
      writing to a meeting of the respective Chief Executive Officers (or other
      officials holding executive positions) of the Parties to the dispute and
      the Parties to the dispute shall attempt to resolve the dispute through
      negotiation between the Chief Executive Officers (or other officials
      holding executive positions) within 10 (ten) Business Days from the date
      of such written invitation.

	 	 
	14.2 	
      Should the respective Chief Executive Officers (or other
      officials holding executive positions) of the Parties fail to resolve the
      dispute referred to in clause 14.1, then any Party to the dispute shall
      (if it requires a dispute to be settled in terms of this Agreement) be
      obliged to give written notice to any other Parties to the dispute (other
      than where the Company is a party to the dispute in which case the notice
      shall be provided to all the Shareholders) to initiate the arbitration
      procedure set out below (the Dispute Notice).

	 	 
	14.3 	
      The Parties may agree on the arbitrators and the
      arbitration procedure and, failing agreement within 5 (five) Business Days
      from the date of the Dispute Notice or such longer period of time as may
      be agreed to in writing, then: (i) the arbitration shall take place in
      accordance with the rules of the Arbitration Foundation of South Africa
      (AFSA) in force at the time of the dispute (or the last rules in
      existence if, for whatever reason, AFSA ceases to exist); and (ii) the
      arbitrators shall be nominated and appointed by AFSA upon written request
      by any Party, provided that the arbitrators shall each have at least 15
      (fifteen) years’ relevant experience and, in the case of a lawyer, shall
      be a senior counsel of the Johannesburg Bar or a retired judge.

	 	 
	14.4 	
      Unless agreed otherwise, the arbitration shall be
      administered by the Parties. The number of arbitrators shall be 3 (three)
      and the place of the arbitration hearing shall be Sandton, Johannesburg
      and the arbitration shall be conducted in the English language.

	 	 
	14.5 	
      The governing substantive law of the Agreement shall be
      the law of South Africa. The governing procedural law of the arbitration
      shall be the law of South Africa.

	 	 
	14.6 	
      The arbitrators shall have the same remedial powers as a
      court of law in South Africa would have were it adjudicating the dispute.
      The arbitrators shall deliver an award together with written reasons
      within 30 (thirty) days from the date upon which the arbitration
      ends which award shall be final and binding on the Parties save for any
      manifest error.

- 30 - 

	 	 
	14.7 	
      Nothing in this clause 14 shall preclude any Party from
      applying to a duly constituted court of competent jurisdiction for urgent
      interim relief: (i) to compel arbitration; (ii) to obtain interim measures
      of protection prior to or pending arbitration; (iii) to seek such
      injunctive relief as may be necessary and appropriate; (iv) to enforce any
      decision of the arbitrators, including the final award; (v) for judgment
      in relation to a liquidated claim; or (vi) to enforce any security granted
      in terms of, or relating to, this Agreement and to this end the Parties
      hereby consent to the jurisdiction of the High Court of South Africa,
      Gauteng Local Division, Johannesburg (or its
successor).

	15. 	
      ADDRESSES FOR LEGAL PROCESSES AND
  NOTICES

	15.1 	
      The Parties choose for the purposes of this Agreement the
      following addresses, telefax numbers and email
addresses:

	15.1.1 	3C 	Cnr Maxwell Drive and Pretoria Main Road 
		 	Buccleuch Ext 10 
	  	  	2090 
	  	  	Email address: serenta@cellc.co.za 
	  	  	Marked for the attention of: The Company
      Secretary 
	  	  	With a copy to Bowmans: 
	  	  	11 Alice Lane, Sandton, Johannesburg, 2146
  
	  	  	Email address: ezra.davids@bowmanslaw.com
	  	  	Marked for the attention of: The Senior Partner
    
	  	  	  
	15.1.2 	BLT 	75 Grayston Drive 
		 	Morningside Ext
  5  
	  	  	Sandton 
	  	  	2196 
	  	  	Email address: legal@blts.co.za 
	  	  	Marked for the attention of: The Chief
      Executive Officer 
	  	  	  
	15.1.3 	NET1 	6th Floor President Place 
	  	  	Corner of Jan Smuts Avenue & Bolton Road
  
	  	  	Rosebank 
	  	  	2121 
	  	  	Email address: hermank@net1.com 
	  	  	Marked for the attention of: Herman Kotze
  

- 31 - 

	15.1.4 	M5 	Cnr Maxwell Drive and Pretoria Main Road 
		 	Buccleuch Ext 10 
	  	  	2090 
	  	  	Email address: graham@cellc.co.za 
	  	  	Marked for the attention of: Graham Mackinnon
    
	  	  	  
	15.1.5 	MS15 	Cnr Maxwell Drive and Pretoria Main Road 
		 	Buccleuch Ext 10 
	  	  	2090 
	  	  	Email address: graham@cellc.co.za 
	  	  	Marked for the attention of: The Chairman

	  	  	  
	15.1.6 	SPV1 	Cnr Maxwell Drive and Pretoria Main Road 
		 	Buccleuch Ext 10 
	  	  	2090 
	  	  	Email address: serenta@cellc.co.za 
	  	  	Marked for the attention of: The Company
      Secretary 
	  	  	With a copy to Bowmans: 
	  	  	11 Alice Lane, Sandton, Johannesburg, 2146
  
	  	  	Email address: ezra.davids@bowmanslaw.com
	  	  	Marked for the attention of: The Senior Partner
    
	  	  	  
	15.1.7 	SPV2 	Cnr Maxwell Drive and Pretoria Main Road 
		 	Buccleuch Ext 10 
	  	  	2090 
	  	  	Email address: serenta@cellc.co.za 
	  	  	Marked for the attention of: The Company
      Secretary 
	  	  	With a copy to Bowmans: 
	  	  	11 Alice Lane, Sandton, Johannesburg, 2146
  
	  	  	Email address: ezra.davids@bowmanslaw.com
	  	  	Marked for the attention of: The Senior Partner
    
	  	  	  
	15.1.8 	SPV3 	Cnr Maxwell Drive and Pretoria Main Road 
	 	 	Buccleuch Ext 10
	  	  	2090 
	  	  	Email address: serenta@cellc.co.za 
	  	  	Marked for the attention of: The Company
      Secretary 

- 32 - 

	  	  	With a copy to Bowmans: 
	  	  	11 Alice Lane, Sandton, Johannesburg, 2146
  
	  	  	Email address: ezra.davids@bowmanslaw.com 
	  	  	Marked for the attention of: The Senior Partner
    
	  	  	  
	15.1.9 	Company 	Cnr Maxwell Drive and Pretoria Main Road 
	  	 	Buccleuch Ext 10 
	  	  	2090 
	  	  	Email address: serenta@cellc.co.za 
	  	  	Marked for the attention of: The Company
      Secretary 

	15.2 	
      Any legal process to be served on either of the Parties
      may be served on it at the address specified for it in clause 15.1 and it
      chooses that address as its domicilium citandi et executandi for
      all purposes under this Agreement and all the Transaction
  Documents.

	 	 
	15.3 	
      Any notice or other communication to be given to any of
      the Parties in terms of this Agreement is valid and effective only if it
      is given in writing, provided that any notice given by telefax or email is
      regarded for this purpose as having been given in writing.

	 	 
	15.4 	
      A notice to any Party which is delivered to the Party by
      hand at that address is deemed to have been received on the day of
      delivery, provided it was delivered to a responsible person during
      ordinary business hours.

	 	 
	15.5 	
      A notice to any Party which is sent by overnight courier
      in a correctly addressed envelope to the address specified for it in
      clause 15.1 is deemed to have been received on the Business Day following
      the date it is sent.

	 	 
	15.6 	
      Each notice by telefax or email to a Party at the telefax
      number or email address specified for it in clause 15.1 is deemed to have
      been received within 6 (six) hours of transmission if it is transmitted
      during normal business hours of the receiving Party or within 3 (three)
      hours of the beginning of the next Business Day at the destination after
      it is transmitted, if it is transmitted outside those business
    hours.

	 	 
	15.7 	
      Notwithstanding anything to the contrary in this clause
      15, a written notice or other communication actually received by any Party
      is adequate written notice or communication to it notwithstanding that the
      notice was not sent to or delivered at its chosen address.

	 	 
	15.8 	
      Any Party may by written notice to the other Parties
      change its address or telefax number or email address for the purposes of
      clause 15.1 to any other address (other than a post office box number)
      provided that the change will become effective on the day following
      receipt of the notice.

- 33 -

	16. 	
      LIMITATION OF LIABILITY

	 	 
		
      The Parties hereby unconditionally and irrevocably agree
      and acknowledge that they are each bound by the limitation of liability
      provisions of the Subscription Agreement to which they are a Party and
      that the recourse available to each Party against each other Party under
      this Agreement and the remainder of the Transaction Documents (excluding
      the Shareholders Agreement, the Memorandum of Incorporation and the
      Company Indemnity Agreement) shall be limited in accordance
    therewith.

	 	 
	17. 	
      GENERAL

	17.1 	
      Communications between the Parties

	 	 
		
      All notices, demands and other oral or written
      communications given or made by or on behalf of one of the Parties to
      another Party shall be in English or accompanied by a certified
      translation into English.

	 	 
	17.2 	
      Remedies

	 	 
		
      Subject to the provisions of clause 10, no remedy
      conferred by this Agreement is intended to be exclusive of any other
      remedy which is otherwise available at law, by statute or otherwise. Each
      remedy is cumulative and in addition to every other remedy given hereunder
      or now or hereafter existing at law, by statute or otherwise. The election
      of any one or more remedies by a Party does not constitute a waiver by
      such Party of the right to pursue any other remedy.

	 	 
	17.3 	
      Entire Agreement

	17.3.1 	
      This Agreement and the Transaction Documents constitutes
      the entire agreement between the Parties in regard to its subject
      matter.

	 	 
	17.3.2 	
      None of the Parties shall have any claim or right of
      action arising from any undertaking, representation or warranty not
      included in this Agreement.

	17.4 	
      Variations

	 	 
		
      No agreement to vary, add to or cancel this Agreement or
      any Transaction Document shall be of any force or effect unless recorded
      in writing and signed by or on behalf of all of the Parties. For the
      purposes of this clause 17.4, “writing” shall not include email or other
      data message and “signed” shall not include electronic signature, as
      defined in the Electronic Communications and Transactions Act,
  2002.

- 34 - 

	17.5 	
      No Waiver

	17.5.1 	
      A waiver of any right or remedy under this Agreement or
      by law is only effective if given in writing and is not deemed a waiver of
      any subsequent breach or default.

	 	 
	17.5.2 	
      A failure to exercise or a delay by a Party in exercising
      any right or remedy provided under this Agreement or by law does not
      constitute a waiver of that or any other right or remedy, nor does it
      prevent or restrict any further exercise of that or any other right or
      remedy. No single or partial exercise of any right or remedy provided
      under this Agreement or by law prevents or restricts the further exercise
      of that or any other right or remedy.

	17.6 	
      Conflict with other Agreements

	 	 
		
      If there is any conflict between the terms of this
      Agreement and any other agreement or Transaction Document, the
      Shareholders Agreement and the MOI shall prevail (as between the Parties)
      unless: (i) such other agreement or Transaction Document expressly states
      that it overrides the Shareholders Agreement and the MOI in the relevant
      respect; or (ii) the Parties otherwise expressly agree in writing that
      such other agreement shall override the Shareholders Agreement and the MOI
      or Transaction Documents in that respect.

	 	 
	17.7 	
      Effect of Closing

	 	 
		
      Notwithstanding Closing: (i) each provision of this
      Agreement not performed at or before Closing but which remains capable of
      performance; and (ii) all covenants and other undertakings and assurances
      contained in or entered into pursuant to this Agreement or any other
      Transaction Document, will remain in full force and effect and (except as
      otherwise expressly provided) without limit in time, except as may be
      expressly provided otherwise in this Agreement.

	 	 
	17.8 	
      Third Party Enforcement Rights

	 	 
		
      No person who is not a Party to this Agreement, other
      than a person granted specific rights under this Agreement, shall have any
      right under any applicable legislation giving rights to such persons or on
      any other basis, to enforce any of its terms.

	 	 
	17.9 	
      No Partnership or Agency

	 	 
		
      Nothing in this Agreement (or any of the arrangements
      contemplated by it) is or shall be deemed to constitute a partnership
      between the Parties or, except as may be expressly set out in it or them,
      constitute any Party the agent of any other for any
  purpose.

- 35 - 

	17.10 	
      Set-Off

	 	 
		
      Save as expressly provided for in this Agreement, any
      other Transaction Document or specifically in relation to each Subscribing
      Party’s obligation to discharge its portion of the Subscription
      Consideration, no Subscribing Party nor BLT Parent may set off any
      liability of the other of them under this Agreement or any of the
      Transaction Documents against any liability which it may have to the other
      of them under this Agreement or any of the Transaction
Documents.

	 	 
	17.11 	
      Further Assurances

	 	 
		
      Each of the Parties hereto shall, and shall cause their
      respective Affiliates to, execute and deliver such additional documents,
      instruments, conveyances and assurances and take such further actions as
      may be reasonably required or desirable to carry out the provisions of
      this Agreement and each of the other Transaction Documents and give effect
      to the Proposed Transaction contemplated hereby and thereby.

	 	 
	17.12 	
      Survival of Rights, Duties and
  Obligations

	 	 
		
      Termination or expiry of this Agreement for any cause
      does not release any Party from any liability which at the time of
      termination or expiry has already accrued to such Party or which
      thereafter may accrue in respect of any act or omission prior to such
      termination or expiry.

	 	 
	17.13 	
      Severance

	 	 
		
      If any provision of this Agreement that is not material
      to its efficacy as a whole is rendered void, illegal or unenforceable in
      any respect under any law of any jurisdiction, the validity, legality and
      enforceability of the remaining provisions are not in any way affected or
      impaired thereby and the legality, validity and unenforceability of such
      provision under the law of any other jurisdiction are not in any way
      affected or impaired.

	 	 
	17.14 	
      Assignment

	 	 
		
      Save as permitted by the provisions of this Agreement, no
      Party may cede any of its rights or delegate any of its obligations under
      this Agreement.

	 	 
	17.15 	
      Counterparts

	 	 
		
      This Agreement may be signed in any number of
      counterparts, and by each signatory on separate counterparts. Each
      counterpart is an original, but all counterparts shall together constitute
      one and the same instrument. Delivery of an executed counterpart signature
      page of this Agreement by email (PDF) or telecopy shall be as effective as
      delivery of a manually executed counterpart of this Agreement. In relation
      to each counterpart, upon confirmation by or on behalf of the signatory
      that the signatory authorises the attachment of such counterpart signature
      page to the final text of this Agreement, such counterpart signature page
      shall take effect together with such final text as a complete
      authoritative counterpart.

- 36 - 

	 	 
	17.16 	
      Applicable Law

	17.16.1 	
      This Agreement is governed by and shall be construed in
      accordance with the laws of South Africa.

	 	 
	17.16.2 	
      Subject to the provisions of this Agreement, the Parties
      consent and submit to the non-exclusive jurisdiction of the High Court of
      South Africa, Gauteng Local Division, Johannesburg (or its successor) in
      any dispute arising from or in connection with this
  Agreement.

	18. 	
      COSTS

	 	 
		
      Each Party is responsible for its own costs, legal fees
      and other expenses incurred in the negotiation, preparation and execution
      of this Agreement.

- 37 - 

SIGNED at  Dubai  on this the  19th  day of  June 2017.

	 	For and on behalf of 
	 	3C TELECOMMUNICATIONS PROPRIETARY
      LIMITED 
	 	 
	 	 
	 	 
	 	/s/ Mazen Abouchakra

	 	Signatory: Mazen Abouchakra

	 	Capacity: Director
	 	Who warrants his authority hereto

SIGNED at Sandton on this the 19th day of June 2017.

	 	For and on behalf of 
	 	THE PREPAID COMPANY PROPRIETARY
    
	 	LIMITED 
	 	 
	 	 
	 	/s/ B. Levy 
	 	Signatory: B. Levy 
	 	Capacity: Director 
	 	Who warrants his authority hereto

- 38 - 

SIGNED at Sandton on this the 19th day of June 2017.

	 	For and on behalf of 
	 	NET1 APPLIED TECHNOLOGIES SOUTH AFRICA
    
	 	PROPRIETARY LIMITED 
	 	  
	 	  
	 	/s/ H. Kotze 
	 	Signatory: H. Kotze 
	 	Capacity: Director 
	 	Who warrants his authority hereto

SIGNED at Sandton on this the 19th day of June 2017.

 

	 	/s/ José Guilherme Vieira Dos Santos 
	 	JOSÉ GUILHERME VIEIRA DOS SANTOS
  

 

SIGNED at Sandton on this the 19th day of June 2017.

 

	 	/s/ Robert Killigrew Sabine Pasley 
	 	ROBERT KILLIGREW SABINE PASLEY
  

 

SIGNED at Sandton on this the 19th day of June 2017.

 

	 	/s/ Graham Neil Mackinnon 
	 	GRAHAM NEIL MACKINNON

- 39 - 

SIGNED at Buccleuh on this the 19th day of June
2017. 

	 	/s/ Hilton Roy Coverly 
	 	HILTON ROY COVERLY 

 

SIGNED at Sandton on this the 19th day of June 2017.

 

	 	For and on behalf of 
	 	ALBANTA TRADING 109 PROPRIETARY LIMITED
    
	 	  
	 	  
	 	/s/ R. Pasley 
	 	Signatory: R. Pasley 
	 	Capacity: Director 
	 	Who warrants his authority hereto

 

SIGNED at Sandton on this the 19th day of June 2017.

 

	 	For and on behalf of 
	 	CEDAR CELLULAR INVESTMENT 1 (RF) 
	 	PROPRIETARY LIMITED 
	 	  
	 	  
	 	/s/ G. Mackinnon 
	 	Signatory: G. Mackinnon 
	 	Capacity: Director 
	 	Who warrants his authority hereto

 

SIGNED at Sandton on this the 19th day of June 2017.

 

	 	For and on behalf of 

- 40 - 

	 	MAGNOLIA CELLULAR INVESTMENT 2 (RF)
  
	 	PROPRIETARY LIMITED 
	 	  
	 	  
	 	/s/ G. Mackinnon 
	 	Signatory: G. Mackinnon 
	 	Capacity: Director 
	 	Who warrants his authority hereto

 

SIGNED at Sandton on this the 19th day of June 2017.

 

	 	For and on behalf of 
	 	YELLOWWOOD CELLULAR INVESTMENT 3 (RF)
  
	 	PROPRIETARY LIMITED 
	 	  
	 	  
	 	/s/ G. Mackinnon 
	 	Signatory: G. Mackinnon 
	 	Capacity: Director 
	 	Who warrants his authority hereto

 

IGNED at Sandton on this the 19th day of June 2017.

 

	 	For and on behalf of 
	 	CELL C PROPRIETARY LIMITED 
	 	  
	 	  
	 	/s/ J. Dos Santos 
	 	Signatory: J. Dos Santos 
	 	Capacity: Chief Executive Officer 
	 	Who warrants his authority hereto

- 41 - 

SCHEDULE 1.1.52 

MEMBERS OF M5 

	Members of M5 	Identity Number 
	José Guilherme Vieira Dos Santos 	[xxx] 
	Robert Killigrew Sabine Pasley 	[xxx] 
	Graham Neil Mackinnon 	[xxx] 
	Hilton Roy Coverly 	[xxx]

- 42 - 

SCHEDULE 9 

CLOSING ARRANGEMENTS 

PART A: Closing Obligations of 3C and the Company 

	1. 	
      At Closing, 3C shall deliver or ensure that there is
      delivered to the Subscribing Parties (or made available to the Subscribing
      Parties’ reasonable satisfaction):

	1.1 	
      Approvals

	1.1.1 	
      written evidence of the satisfaction (or, to the extent
      applicable, waiver) of the Conditions set out in clause 3 of this
      Agreement;

	 	 
	1.1.2 	
      a certified copy of an extract of the minutes of a
      meeting of 3C in its capacity as sole shareholder of the Company
      authorising:

	1.1.2.1 	
      by ordinary resolution, the appointment of the
      Subscribing Parties’ nominees as Directors with effect from the
      Implementation Date; and

	 	 
	1.1.2.2 	
      by special resolution:

	1.1.2.2.1 	
      the waiver of the required notice period in respect of
      the calling of such shareholder meeting;

	 	 
	1.1.2.2.2 	
      the waiver of the statutory pre-emptive right available
      to 3C as shareholder of the Company in accordance with section 39(2) of
      the Companies Act;

	 	 
	1.1.2.2.3 	
      the conversion of the entire number of ordinary shares in
      the Company from shares having a par value to shares having no par
      value;

	 	 
	1.1.2.2.4 	
      the increase in the Company’s number of authorised
      shares;

	 	 
	1.1.2.2.5 	
      the amendment of the Company’s MOI in order to give
      effect to, amongst other things, the conversion of shares and increase in
      the number of shares contemplated in paragraphs 1.1.2.2.2 and 1.1.2.2.3
      respectively; and

	 	 
	1.1.2.2.6 	
      the issue of shares with a voting power in excess of 30%
      (thirty per cent) of the voting power of all of the ordinary shares of the
      Company held by 3C immediately before the Proposed Transaction in terms of
      section 41(3) of the Companies Act.

- 43 - 

	1.1.3 	
      in respect of the Company:

	1.1.3.1 	
      certified copies of the following resolutions passed by
      the Board of Directors:

	1.1.3.1.1 	
      approving the conversion report prepared for or on behalf
      of the Board of Directors in terms of regulation 31(6) of the Companies
      Regulations and recommending that the shareholder of the Company approves
      the conversion of the Company’s shares from shares having a par value to
      shares having no par value;

	 	 
	1.1.3.1.2 	
      a resolution approving the issue of the M5 Subscription
      Shares to M5, in accordance with the terms of the M5 Subscription
      Agreement and the Master Implementation Agreement;

	 	 
	1.1.3.1.3 	
      a resolution approving the issue of the MS15 Subscription
      Shares to MS15, in accordance with the terms of the MS15 Subscription
      Agreement and the Master Implementation Agreement;

	 	 
	1.1.3.1.4 	
      a resolution approving the issue of the BLT Subscription
      Shares to BLT, in accordance with the terms of the BLT Subscription
      Agreement and the Master Implementation Agreement;

	 	 
	1.1.3.1.5 	
      a resolution approving the issue of the NET1 Subscription
      Shares to NET1 in accordance with the terms of the NET1 Subscription
      Agreement and the Master Implementation Agreement;

	 	 
	1.1.3.1.6 	
      a resolution approving the issue of the SPV1 Subscription
      Shares to SPV1 in accordance with the terms of the SPV1 Subscription
      Agreements and the Master Implementation Agreement;

	 	 
	1.1.3.1.7 	
      a resolution approving the issue of the SPV2 Subscription
      Shares to SPV2 in accordance with the terms of the SPV2 Subscription
      Agreements and the Master Implementation Agreement;

	 	 
	1.1.3.1.8 	
      a resolution approving the issue of the SPV3 Subscription
      Shares to SPV3 in accordance with the terms of the SPV3 Subscription
      Agreements and the Master Implementation Agreement;

	 	 
	1.1.3.1.9 	
      a resolution approving the Subscription Consideration as
      adequate for purposes of section 40(1)(a) of the Companies Act;

	 	 
	1.1.3.1.10 	
      a resolution approving the entry of BLT, NET1, M5, MS15,
      SPV1, SPV2 and SPV3 in the securities register of the
  Company;

- 44 - 

	1.1.3.1.11 	
      a resolution approving the issue of new share
      certificates to each of: (a) BLT for the BLT Subscription Shares, (b) NET1
      for the NET1 Subscription Shares; (c) the members of M5 for their
      respective proportion of the M5 Subscription Shares, (d) MS15 for the MS15
      Subscription Shares, and (e) the SPV Subscribers for the SPV Subscription
      Shares registered in their respective names in accordance with the
      provisions of paragraph 1.1.3.1.10; and

	 	 
	1.1.3.1.12 	
      a resolution noting the appointment to the Board of
      Directors of the Subscribing Parties’ nominees and, if applicable,
      accepting the resignation of the relevant persons as Directors with effect
      from the Implementation Date;

	1.2 	
      Corporate documents

	1.2.1 	
      a certified copy of the MOI of the Company;

	 	 
	1.2.2 	
      certified copies of the resolutions referred to in
      paragraph 1.1.3.1; and

	 	 
	1.2.3 	
      to each of BLT, NET1, the members of M5, MS15 and the SPV
      Subscribers, the original signed share certificates for the BLT
      Subscription Shares, NET1 Subscription Shares, M5 Subscription Shares,
      MS15 Subscription Shares, and the SPV Subscription Shares,
      respectively;

	1.3 	
      Announcements the announcements/press releases of
      3C in the Agreed Form;

	 	 
	1.4 	
      Directors

	1.4.1 	
      the resignation letters of the relevant Directors
      appointed by 3C and resigning from the Board of Directors of the Company,
      with effect from the Implementation Date, and confirming that such
      Directors do not have any claims against the Company, as well as certified
      copies of such resigning Directors’ passports or South African identity
      documents, as applicable; and

	 	 
	1.4.2 	
      upon receipt of the resignation letters, a document
      delivered by the Company confirming that the Company does not have any
      claims against such resigning Directors;

	1.5 	
      Other

	 	 
		
      a certified copy of the Company’s securities register,
      updated to reflect the respective holdings of Shares of the Subscribing
      Parties immediately following Closing.

- 45 - 

Part B: Closing Obligations of the Subscribing Parties

	1. 	
      At Closing, BLT shall deliver or ensure that there is
      delivered to the Company (or made available to the Company’s reasonable
      satisfaction):

	1.1 	
      Approvals

	1.1.1 	
      a certified copy of the minutes of a meeting of the board
      of directors of BLT, including a resolution authorising the subscription
      by BLT for the BLT Subscription Shares in accordance with the terms of the
      BLT Subscription Agreement, with effect from the Implementation
    Date;

	 	 
	1.1.2 	
      evidence to the reasonable satisfaction of the Company
      that the shareholders of BLT Parent have passed an ordinary resolution
      approving the Proposed Transaction as a “Category 1” transaction under the
      Listings Requirements;

	1.2 	
      Announcements

	 	 
		
      the finalisation announcement and press release of BLT
      Parent, in the Agreed Form;

	 	 
	1.3 	
      Directors

	 	 
		
      the appointment letter of each new director to be
      appointed by BLT to the Board of Directors with effect from the
      Implementation Date, as well as certified copies of such appointed
      directors’ passports or South African identity documents, as
      applicable.

	2. 	
      At Closing, NET1 shall deliver or ensure that there is
      delivered to the Company (or made available to the Company’s reasonable
      satisfaction):

	2.1 	
      Approvals

	 	 
		
      a certified copy of the minutes of a meeting of the board
      of directors of NET1, including a resolution authorising the subscription
      by NET1 for the NET1 Subscription Shares in accordance with the terms of
      the NET1 Subscription Agreement, with effect from the Implementation
      Date;

	 	 
	2.2 	
      Announcements

	 	 
		
      the finalisation announcement and press release of NET1,
      in the Agreed Form;

- 46 - 

	2.3 	
      Directors

	 	 
		
      the appointment letter of each new director to be
      appointed by NET1 to the Board of Directors with effect from the
      Implementation Date, as well as certified copies of such appointed
      directors’ passports or South African identity documents, as
      applicable.

	3. 	
      At Closing, each Party listed in Schedule 1.1.52
      shall deliver or ensure that there is delivered to the Company, NET1
      and BLT (or made available to the Company’s, NET1’s or BLT’s reasonable
      satisfaction):

	3.1 	
      Approvals

	 	 
		
      to the extent that any such Party is marred in community
      of property, the written consent of such Party’s spouse authorising the
      subscription by such Party for his pro-rata share of the M5
      Subscription Shares in accordance with the terms of the M5 Subscription
      Agreement.

	4. 	
      At Closing, MS15 shall deliver or ensure that there is
      delivered to the Company, NET1 and BLT (or made available to the
      Company’s, NET1’s and BLT’s reasonable
satisfaction):

	4.1 	
      Approvals

	4.1.1 	
      a certified copy of the minutes of a meeting of the board
      of directors of MS15:

	 	 
	4.1.2 	
      including a resolution authorising the subscription by
      MS15 for the MS15 Subscription Shares in accordance with the terms of the
      MS15 Subscription Agreement; and

	4.2 	
      Other

	 	 
		
      a certificate issued not more than 30 (thirty) days prior
      to the date of delivery thereof by MS15 to BLT, NET1 and the Company 3C,
      by a recognised, reputable, independent and accredited BEE verification
      agency appointed by MS15 and reasonably acceptable to BLT, NET1 and the
      Company (each acting reasonably), certifying that MS15 has the Black
      Interest as at the Implementation Date.

	5. 	
      At Closing, SPV1 shall deliver or ensure that there is
      delivered to the Company (or made available to the Company’s reasonable
      satisfaction):

	5.1 	
      Approvals

	 	 
		
      certified copies of the minutes of meetings of the board
      of directors of SPV1, including resolutions authorising the subscription
      by SPV1 for the SPV1 Subscription Shares in accordance with the terms of
      the SPV1 Subscription Agreement, with effect from the Implementation
      Date.

- 47 - 

	6. 	
      At Closing, SPV2 shall deliver or ensure that there is
      delivered to the Company (or made available to the Company’s reasonable
      satisfaction):

	6.1 	
      Approvals

	 	 
		
      certified copies of the minutes of meetings of the board
      of directors of SPV2, including resolutions authorising the subscription
      by SPV2 for the SPV2 Subscription Shares in accordance with the terms of
      the SPV2 Subscription Agreement, with effect from the Implementation
      Date.

	7. 	
      At Closing, SPV3 shall deliver or ensure that there is
      delivered to the Company (or made available to the Company’s reasonable
      satisfaction):

	7.1 	
      Approvals

	 	 
		
      certified copies of the minutes of meetings of the board
      of directors of SPV3, including resolutions authorising the subscription
      by SPV3 for the SPV3 Subscription Shares in accordance with the terms of
      the SPV3 Subscription Agreement, with effect from the Implementation
      Date.

	8. 	
      At Closing, the Subscribing Parties shall take any other
      action required to give effect to the Transaction
  Documents.

Part C: General 

All documents and items delivered at Closing pursuant to this
Schedule and clause 9 of the Agreement shall be held by the recipient to the
order of the person delivering the same until such time as Closing shall be
deemed to have taken place. Simultaneously with delivery of all documents and
all items required to be delivered at Closing (or waiver of the delivery of it
by the person entitled to receive the relevant document or item), the documents
and items delivered in accordance with each of the Transaction Documents and as
set out in the Master Implementation Agreement and this Schedule 9 shall
cease to be held to the order of the person delivering them and Closing shall be
deemed to have taken place.

- 48 - 

SCHEDULE 13.2 

INDEPENDENT EXPERT 

	1. 	
      Goldman Sachs

	 	 
	2. 	
      Barclays Capital

	 	 
	3. 	
      Deutsche Bank

	 	 
	4. 	
      Bank of America Merrill Lynch

	 	 
	5. 	
      Rand Merchant Bank

	 	 
	6. 	
      Morgan Stanley

	 	 
	7. 	
      JP Morgan

	 	 
	8. 	
      Investec

	 	 
	9. 	
      Standard Bank

	 	 
	10. 	
      UBS

	 	 
	11. 	
      HSBC

	 	 
	12. 	
      BNP Paribas

	 	 
	13. 	
      Citi Bank

	 	 
	14. 	
      Commerzbank

- 49 -

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