Document:

Exhibit 4.1

 

THE BANK OF NEW YORK MELLON

NEW YORK’S FIRST BANK-FOUNDED 1784 BY ALEXANDER HAMILTON

 

 

2 HANSON PLACE, 12TH FLOOR, BROOKLYN,
N.Y. 11217

 

 

 

April 12, 2016

 

Hennion & Walsh, Inc.

2001 Route 46, Waterview Plaza

Parsippany, New Jersey 07054

 

Smart Trust 237

 

Dear Sirs:

The Bank of New York
Mellon is acting as trustee for the series of Smart Trust set forth above (the “Trust”). We enclosed a list
of the Securities to be deposited in the Trust on the date hereof. The prices indicated therein reflect our evaluation of such
Securities as of close of business on April 11, 2016, in accordance with the valuation method set forth in the Standard Terms and
Conditions of Trust and Trust Agreement. We consent to the reference to The Bank of New York Mellon as the party performing the
evaluations of the Trust Securities in the Registration Statement (No. 333-209467) filed with the Securities and Exchange Commission
with respect to the registration of the sale of the Trust Units and to the filing of this consent as an exhibit thereto.

 

 

Very truly yours,

 

/s/ GERARDO CIPRIANO                     

Gerardo Cipriano

Vice PresidentExhibit 4.3

 

Consent of Independent Registered
Public Accounting Firm

We consent to the
reference made to our firm under the caption “Independent Registered Public Accounting Firm” in Part B of the Prospectus
and to the use of our report dated April 12, 2016, in this Registration Statement (Form S-6 No. 333-209467) of Smart Trust 237,
comprising Smart Trust, Dorsey Wright International Momentum Trust, Series 3.

 

/s/ Grant
Thornton LLP

 

Chicago, Illinois

April 12, 2016Net 1 UEPS Technologies, Inc.: Exhibit 10.31 - Filed by newsfilecorp.com

Exhibit 10.31 
EXECUTION VERSION 
IFC Investment
No. 37402 

Subscription Agreement 

By and Among 

NET 1 UEPS TECHNOLOGIES, INC. 

and 

EACH OF THE INVESTORS SIGNATORY HERETO 

Dated April 11, 2016 

 

TABLE OF CONTENTS 

	Article/ 	  	  
	Section 	Item 	Page No. 

	ARTICLE I 	1 
	Definitions and Interpretation 	1 
	 	Section 1.01.      	Definitions 	1 
	 	Section 1.02.      	Interpretation 	6 
	 	Section 1.03.      	Third
      Party Rights 	6 
	 	 	  	  
	ARTICLE
      II 	6  
	Agreement for Subscription 	6  
	 	Section
      2.01. 	Subscription 	6 
	 	  Section 2.02. 	  Company’s Obligations until
      the Subscription Shares are Issued      	7  
	 	Section
      2.03. 	Cancellation of Investors Subscription 	8 
	 	 	  	  
	ARTICLE III 	8  
	Representations and Warranties 	8  
	 	Section
      3.01. 	Representations and Warranties of the Company    	8 
	 	Section
      3.02. 	Representations and Warranties of the Investors    	17
	 	Section
      3.03. 	Reliance 	19
	 	Section
      3.04. 	Company
      Disclosure Letter 	19
	 	Section
      3.05. 	Survival
      of Representations and Warranties 	19
	 	Section
      3.06. 	Indemnity 	19
	 	 	  	  
	ARTICLE IV 	20  
	Conditions of Investors Subscription    	20  
	 	Section
      4.01. 	Conditions of the Investors Subscription 	20
	 	 	  	  
	ARTICLE V 	  	21  
	Miscellaneous 	  	21  
	 	Section
      5.01. 	Notices 	21
	 	Section
      5.02. 	Saving of
      Rights 	23
	 	Section
      5.03. 	English
      Language 	23
	 	Section
      5.04. 	Applicable Law and Jurisdiction 	23
	 	Section
      5.05. 	Immunity 	24
	 	Section
      5.06. 	Announcements 	25
	 	Section
      5.07. 	Successors and Assigns 	25
	 	Section
      5.08. 	Amendments, Waivers and Consents 	25
	 	Section
      5.09. 	Counterparts. 	25
	 	Section
      5.10. 	Expenses 	25
	 	Section
      5.11. 	Entire
      Agreement 	26
	 	 Section 5.12.	Invalid
      Provisions	  26

- ii - 

	Article/ 	  	  
	Section 	Item 	Page No. 

	ANNEX
      A 	28
      
	MINIMUM
      INSURANCE REQUIREMENTS 	28
      
	ANNEX
      B 	29
      
	ANTI-CORRUPTION
      GUIDELINES FOR IFC TRANSACTIONS 	29
      
	SCHEDULE
      1 	32
      
	SUBSCRIPTION
      AMOUNTS 	32
      
	SCHEDULE
      2 	33
      
	FORM
      OF CLOSING NOTICE 	33
      
	SCHEDULE
      3 	36
      
	FORM
      OF APPOINTMENT OF AGENT FOR SERVICE OF PROCESS 	36
      
	SCHEDULE
      4 	39
      
	FORM
      OF CERTIFICATE OF INCUMBENCY AND AUTHORITY 	39
      
	SCHEDULE
      5 	40
      
	FORM
      OF LETTER TO COMPANY’S AUDITORS 	40
      
	SCHEDULE
      6 	42
      
	ACTION
      PLAN 	42
      

SUBSCRIPTION AGREEMENT

SUBSCRIPTION AGREEMENT (this “Agreement”), dated April
11, 2016, between:

(1)      NET 1 UEPS TECHNOLOGIES,
INC., a corporation organized and existing under the laws of State of Florida
(the “Company”); 

(2)      INTERNATIONAL FINANCE
CORPORATION, an international organization established by Articles of Agreement
among its member countries (“IFC”); 

(3)      IFC African, Latin
American and Caribbean Fund, LP, a limited partnership formed under the laws of
the United Kingdom (“ALAC”); 

(4)      IFC Financial
Institutions Growth Fund, LP, a limited partnership formed under the laws of the
United Kingdom (“FIG”); and 

(5)      Africa Capitalization Fund, Ltd., a
  Mauritius limited company (“AFCAP” and together with IFC, ALAC and FIG,
  the “Investors”). 

RECITALS

The Company desires to issue to
the Investors, and the Investors desire, severally and not jointly, to subscribe
for, shares of common stock of the Company referred to in Section 2.01(a)
(Subscription), on the terms and conditions set forth in this
Agreement. 

ARTICLE I 
Definitions and Interpretation 

Section 1.01.
Definitions. Wherever used in this Agreement, the following terms
have the following meanings: 

“Accounting Standards” means accounting principles
generally accepted in the United States, applied on a consistent basis; 

“Action Plan” means the plan attached as Schedule
6 (Action Plan) setting out the specific social and environmental
measures to be undertaken by the Company; 

“AFCAP” has the meaning set forth in the preamble; 

“Affiliate” means, with respect to any Person, any
Person directly or indirectly Controlling, Controlled by or under common Control
with, that Person; 

“ALAC” has the meaning set forth in the preamble; 

“Applicable Law” means all applicable statutes, laws,
ordinances, rules and regulations, including but not limited to, any license,
permit or other governmental Authorization, in each case as in effect from time
to time; 

“Applicable S&E Law” means all applicable statutes,
laws, ordinances, rules and regulations of each country in which the Company or
any Subsidiary does business, including, without limitation, all Authorizations
setting standards concerning environmental, social, labor, health and safety or
security risks of the type contemplated by the Performance Standards or imposing
liability for the breach thereof; 

- 2 - 

“Auditors” means the independent registered public
accounting firm of the Company; 

“Authority” means any national, supranational, regional
or local government or governmental, statutory, regulatory, administrative,
fiscal, judicial, or government-owned body, department, commission, authority,
tribunal, agency or entity, or central bank (or any Person whether or not
government owned and howsoever constituted or called, that exercises the
functions of a central bank); 

“Authorization” means any consent, registration, filing,
agreement, notarization, certificate, license, approval, permit, authority or
exemption from, by or with any Authority, whether given by express action or
deemed given by failure to act within any specified time period and all
corporate, creditors’ and stockholders’ approvals or consents; 

“Authorized Representative” means any individual who is
duly authorized by the Company to act on its behalf and whose name and a
specimen of whose signature appear on the Certificate of Incumbency and
Authority most recently delivered by the Company to each Investor; 

“Business Day” means a day when banks are open for
business in New York, New York and Johannesburg, South Africa; 

“Cancellation Date” means July 11, 2016; 

“Certificate of Incumbency and Authority” means a
certificate provided to each Investor by the Company substantially in the form
set forth in Schedule 4 (Form of Certificate of Incumbency and
Authority); 

“Charter” means the Amended and Restated Articles of
Incorporation and Amended and Restated By-Laws of the Company; 

“Closing Notice” means a notice in the form set forth in
Schedule 2 (Form of Closing Notice); 

“Coercive Practice” has the meaning set forth in
Annex B (Anti-Corruption Guidelines for IFC Transactions); 

“Collusive Practice” has the meaning set forth in
Annex B (Anti-Corruption Guidelines for IFC Transactions); 

“Common Stock” means the common stock, par value $0.001
per share, of the Company; 

“Company” has the meaning set forth in the preamble;

“Company Agreements” has the meaning set forth in
Section 3.01(w) (Material Contracts); 

“Company Disclosure Letter” has the meaning set forth in
Section 3.01 (Representations and Warranties of the Company);

“Company’s Employee Plan” means any plan, program, or
other arrangement providing for employment, compensation, retirement, deferred
compensation, severance, separation, stock option or other benefits, which has
been sponsored, contributed to or required to be contributed to by the Company
or any of its Subsidiaries for the benefit of any Person who performs or who has
performed services for the Company or any of its Subsidiaries; 

“Company Operations” means all of the existing
operations of the Company and its Subsidiaries; 

- 3 - 

“Company SEC Documents” has the meaning set forth in
Section 3.01(z) (Regulatory Reporting). 

“Control” means the power to direct the management or
policies of a Person, directly or indirectly, whether through the ownership of
shares or other securities, by contract or otherwise; provided that, in any
event, the direct or indirect ownership of twenty percent (20%) or more of the
voting share capital of a Person is deemed to constitute Control of that Person,
and “Controlling” and “Controlled” have corresponding meanings;

“Corrupt Practice” has the meaning set forth in Annex
B (Anti-Corruption Guidelines for IFC Transactions); 

“Dollars” or “$” means the lawful currency of the
United States of America; 

“Equity Securities” means the Company’s Common Stock,
preferred stock, bonds, loans, warrants, rights, options or other similar
instruments or securities which are convertible into or exercisable or
exchangeable for, or which carry a right to subscribe for or purchase shares of
Common Stock or any instrument or certificate representing a beneficial
ownership interest in the Common Stock, including global depositary receipts and
American depository receipts and any other security issued by the Company, even
if not convertible into Common Stock, that derives its value and/or return based
on the financial performance of the Company or its Common Stock; 

“Exchange Act” means the U.S. Securities Exchange Act of
1934, as amended; 

“FAIS” has the meaning set forth in Section
3.01(aa); 

“Fraudulent Practice” has the meaning set forth in Annex
B (Anti-Corruption Guidelines for IFC Transactions); 

“IFC” has the meaning set forth in the preamble; 

“Investor Subscription” means any subscription for
Equity Securities of the Company by the Investors as provided for in Article II
(Agreement for Subscription); 

“Intellectual Property” means any or all of the
following and all rights in, arising out of, or associated with any or all of
the following: 

(a)      all U.S., foreign and
international patents and patent rights (including all patents, patent
applications, provisional patent applications, and any and all divisions,
continuations, continuations-in-part, reissues, re-examinations and extensions
thereof, and all invention registrations and invention disclosures); 

(b)      all
trademarks and trademark rights, service marks and service mark rights, trade
names and trade name rights, service names and service name rights (including
all goodwill, common law rights and governmental or other registrations or
applications for registration pertaining thereto), designs, trade dress, brand
names, business and product names, internet domain names, logos and slogans;

(c)      all copyrights and
copyright rights (including all common law rights, and governmental or other
registrations or applications for registration pertaining thereto, and renewal
rights therefor); 

(d)      all sui generis database
rights, ideas, inventions (whether patentable or not), invention disclosures,
improvements, technology know-how, show-how, trade secrets, formulas, systems,
processes, designs, methodologies, industrial models, works of
authorship, databases, content, graphics, technical drawings, statistical
models, algorithms, modules, computer programs, technical documentation,
business methods, work product, intellectual and industrial property licenses,
proprietary information and documentation relating to any of the foregoing; 

- 4 - 

(e)      all mask works, mask work
registrations and applications therefor; 

(f)      all industrial designs and
any registrations and applications therefor throughout the world; 

(g)      all computer software
including all source code, object code, firmware, development tools, files,
records and data, and all media on which any of the foregoing is recorded; and

(h)      all
similar, corresponding or equivalent rights to any of the foregoing; 

“Key Subsidiary” means each of Net1 Applied Technologies
South Africa Proprietary Limited, Zazoo Limited, Cash Paymaster Services
Proprietary Limited, Net1 Company Finance Holdings Proprietary Limited, The
Smart Life Insurance Company Limited, Prism Holdings Proprietary Limited,
EasyPay Proprietary Limited, Moneyline Financial Services Proprietary Limited
and KSNET Incorporated; 

“Knowledge” means, with respect to the Company, the
knowledge of the Company’s executive officers after making due inquiry of the
individuals within the Company and its Subsidiaries having responsibility for
the matter in question; 

“Lien” means any mortgage, pledge, charge, assignment,
hypothecation, security interest, title retention, preferential right, option
(including call commitment), trust arrangement, right of set-off, counterclaim
or banker’s lien, privilege or priority of any kind having the effect of
security, any designation of loss payees or beneficiaries or any similar
arrangement under or with respect to any insurance policy or any preference of
one creditor over another arising by operation of law; 

“Material Adverse Effect” means a material
adverse effect on:

(a)      the Company’s and its Subsidiaries’ assets or properties,
  taken as a whole; 

(b)      the Company’s and its Subsidiaries’ business prospects or
  financial condition, taken as a whole;

 (c)      the ability of the Company’s and its
  Subsidiaries’ businesses or operations, taken as a whole, to continue as a going
  concern; or

 (d)      the ability of the Company to (i) comply with its obligations
  under this Agreement, the Policy Agreement or its Charter and (ii) ensure that
  each of its Subsidiaries complies with its obligations under the Policy
  Agreement or its organizational documents; 

“Nasdaq” means The Nasdaq Global Select Market; 

“Obstructive Practice” has the meaning set forth in
Annex B (Anti-Corruption Guidelines for IFC Transactions); 

“Performance Standards” means IFC’s Performance
Standards on Social & Environmental Sustainability, dated January 1, 2012,
copies of which are available publicly on the IFC website at
http://www.ifc.org/wps/wcm/connect/Topics_Ext_Content/IFC_External_Corporate_Site/IFC+Sustainability/Su
stainability+Framework/Sustainability+Framework+-+2012/#PerformanceStandards;

- 5 - 

“Permitted Lien” means (i) any Lien or encumbrance for
Taxes that are not yet due and payable or Lien or encumbrance for Taxes being
contested in good faith by an appropriate proceeding for which adequate reserves
have been established, (ii) any mechanics Lien or encumbrance or similar Lien or
encumbrance for labor, materials or supplies incurred in the ordinary course of
business for amounts that are not delinquent, (iii) any Lien or encumbrance
(other than those relating to the preceding clauses (i) and (ii)) that may arise
by operation of law or (iv) any Lien or encumbrance that individually, or when
aggregated with any other Lien or encumbrance, is not material; 

“Person” means any individual, corporation, company,
partnership, firm, voluntary association, joint venture, trust, unincorporated
organization, Authority or any other entity whether acting in an individual,
fiduciary or other capacity; 

“Policy Agreement” means the Policy Agreement, dated
April 11, 2016, by and among the Company and the Investors; 

“S&E Management System” means the Company’s social
and environmental management system, as implemented or in effect from time to
time, enabling it to identify, assess and manage the social and environmental
risks in respect of the Company Operations on an ongoing basis in accordance
with the S&E Requirements; 

“S&E Officer” means a senior officer of the Company
to be responsible for administration and oversight of the S&E Management
System, initially appointed in accordance with the Action Plan; 

“S&E Requirements” means the social and
environmental obligations to be undertaken by the Company and its Subsidiaries
to ensure compliance with: (a) Applicable S&E Laws and (b) the Performance
Standards; 

“Sanctionable Practice” means any Corrupt Practice,
Fraudulent Practice, Coercive Practice, Collusive Practice, or Obstructive
Practice, as those terms are defined herein and interpreted in accordance with
the Anti-Corruption Guidelines attached to this Agreement as Annex B
(Anti-Corruption Guidelines for IFC Transactions); 

“SEC” means the U.S. Securities and Exchange Commission
or any other federal agency administering the Securities Act and the Exchange
Act at the time; 

“Securities Act” means the U.S. Securities Act of 1933,
as amended; 

“Subscription Date” has the meaning set forth in
Section 2.01(b) (Subscription);

 “Subscription Price” has
  the meaning set forth in Section 2.01(a) (Subscription); 

“Subscription Shares” has the meaning set forth in
Section 2.01(a) (Subscription); 

“Subsidiary” means with respect to the Company, an
Affiliate over fifty per cent (50%) of whose capital is owned, directly or
indirectly by the Company; 

“Tax” or “Taxes” means any present or future
taxes (including stamp taxes), withholding obligations, duties and other charges
of whatever nature levied by any Authority; and 

“Transaction Documents” means this Agreement and the
Policy Agreement. 

Section 1.02.
Interpretation. In this Agreement, unless the context otherwise
requires: 

- 6 - 

(a)     
headings are for convenience only and do not affect the interpretation of this
Agreement; 

(b)      words importing the
singular include the plural and vice versa; 

(c)      a reference to an Annex,
Article, party, Schedule or Section is a reference to that Article or Section
of, or that Annex, party or Schedule to, this Agreement; 

(d)      a
reference to a document in the “agreed form” is a reference to a document
approved and for the purposes of identification initialed by or on behalf of the
parties thereto; 

(e)      a reference to a document
includes an amendment or supplement to, or replacement or novation of, that
document but disregarding any amendment, supplement, replacement or novation
made in breach of this Agreement; 

(f)      general words in this
Agreement shall not be given a restrictive meaning by reason of their being
preceded or followed by words indicating a particular class of acts, matters or
things or by examples falling within the general words; and 

(g)      a
reference to a party to any document includes that party’s successors and
permitted assigns. 

Section 1.03. No Third
Party Rights. A Person who is not a party to this Agreement has no right
to enforce or enjoy the benefit of any term of this Agreement. 

ARTICLE II 
Agreement for Subscription 

Section 2.01.
Subscription. 

(a)      On
the terms and subject to the conditions of this Agreement, each Investor agrees,
severally and not jointly, to subscribe and pay for that number of fully paid
and non-assessable shares of Common Stock of the Company set forth opposite its
name on Schedule 1 hereto (the “Subscription Shares”). The
subscription price is $10.7851 per Subscription Share (the “Subscription
Price”).

(b)      Subject
to the terms and conditions of this Agreement, the satisfaction (or waiver by
such Investor) of the conditions of subscription set forth in Section
4.01 (Conditions of the Investors Subscription) and Section
2.03 (Cancellation of Investors Subscription), the closing of the
purchase and sale of the Subscription Shares shall take place on (i) the earlier
of the fifteenth (15th) Business Day after (A) the Company delivers
to each Investor (x) the Closing Notice stating that all conditions of
subscription set forth in Section 4.01 (Conditions of the Investors
Subscription) have been satisfied and (y) executed copies of all documents
to be delivered at the closing, dated the Subscription Date, such documents to
be held in escrow pending the closing, or (B) the delivery to the Company by
each Investor of a notice that it is waiving the conditions to subscription set
forth in Section 4.01 (Conditions of the Investors Subscription)
that the Company has not satisfied as of the date of such notice, or (ii) such
other date as the Company and the Investors may agree (such date of closing the
“Subscription Date”). The Company shall promptly deliver a Closing Notice
to each the Investors when all conditions of subscription set forth in
Section 4.01 (Conditions of the Investors Subscription) are
satisfied (modified to the extent the Investors are waiving certain closing
conditions). 

- 7 - 

(c)      On
the Subscription Date: 

	 	(i) 	
      each Investor shall pay the amount equal to the
      Subscription Price multiplied by the number of Subscription Shares in
      Dollars to the account of the Company specified in the Closing Notice;
      and

	 	 	 
	 	(ii) 	
      the Company shall issue to each Investor, or as such
      Investor directs, the Subscription Shares free of all Liens or other
      encumbrances or rights of third parties and record each Investor as the
      legal and beneficial owner of the Subscription Shares in the Company’s
      share register, and shall provide each Investor with evidence, in form and
      substance satisfactory to such Investor, that book-entry shares
      representing the Subscription Shares have been issued in the name of such
      Investor.

(d)      The
Company shall pay all Taxes, fees or other charges payable on or in connection
with the execution, issue, subscription, delivery, registration, translation or
notarization of this Agreement, the other Transaction Documents, the Company’s
Charter, the Subscription Shares and any other documents related to this
Agreement, the Policy Agreement or the Company’s Charter.

(e)      The
Company shall undertake all post-issue filings and other requirements associated
with the issuance of the Subscription Shares in the time prescribed for the same
under Applicable Law. 

(f)     
If the Company, for any reason, does not issue the Subscription Shares as set
forth in Section 2.01(c) or deliver the Closing Notice when all
conditions of subscription set forth in Section 4.01 (Conditions of
the Investors Subscription) are satisfied, such failure to issue the
Subscription Shares shall constitute a breach of the Company’s obligations under
this Agreement, and the Investors shall have the right to exercise any and all
rights or legal or equitable remedies of any kind which may accrue to it against
the Company. 

(g)      If
any Investor, for any reason, does not pay the aggregate Subscription Price for
its Subscription Shares as set forth in Section 2.01(c), such failure to
pay for the Subscription Shares shall constitute a breach of such Investor’s
obligations under this Agreement, and the Company shall have the right to
exercise any and all rights or legal or equitable remedies of any kind which may
accrue to it against such Investor. 

Section 2.02. Company’s
Obligations until the Subscription Shares are Issued. Until the
Subscription Shares have been subscribed and issued or this Agreement, and the
Company’s and Investors’ obligations hereunder, has been canceled as provided in
Section 2.03 (Cancellation of Investors Subscription), whichever
occurs first: (i) the Company shall at all times maintain a sufficient number of
authorized and unissued shares to permit the subscription by the Investors of
all the Subscription Shares; (ii) the Company shall, and shall cause each of its
Subsidiaries to, conduct its business in the ordinary course and shall use, and
shall cause each of its Subsidiaries to use, its reasonable best efforts to
preserve intact its business organizations and relationships with third parties
and to keep available the services of its present officers and employees; (iii)
the Company shall not issue, or enter into any discussions, agreement,
understanding, letter of intent or other arrangement with any Person to issue,
additional shares of Common Stock, other than grants of options or restricted
stock pursuant to the Company’s existing equity incentive plans and issuances of
Common Stock upon the exercise of options granted under such plans; and (iv) the
Company shall use commercially reasonable efforts, as promptly as possible, to
take or cause to be taken all action and do or cause to be done all things
necessary, proper or advisable to consummate and make effective the transactions
contemplated by this Agreement, including the satisfaction on a timely basis of
the conditions to subscription. 

- 8 - 

Section 2.03. Cancellation
of Investors Subscription. Each Investor may, by written notice to the
Company, cancel the right of the Company to request such Investor to subscribe
for any Subscription Shares: 

(a)      if at
any time, in the reasonable opinion of such Investor, anything has occurred
which has or may reasonably be expected to have a Material Adverse Effect or
there exists any situation which indicates that performance by the Company of
its obligations under any of the Transaction Documents or the Company’s Charter
cannot be expected; 

(b)      if the Company has breached
Section 2.02 (Company’s Obligations until the Subscription Shares are
Issued) and such breach is incapable of cure (in the sole opinion of such
Investor) or, where such breach is capable (in the sole opinion of such
Investor) of cure, it has not been cured within thirty (30) days following
receipt by the Company of notice of such breach from such Investor; or 

(c)      in
any case, at any time on or after the Cancellation Date, 

and upon any such cancellation, each party’s further rights and
obligations shall terminate immediately, provided that such termination shall
not affect a party’s accrued rights and obligations at the date of termination
and shall be without prejudice to any and all rights or legal or equitable
remedies of any kind which may accrue to the Investors against the Company and
provided that the provisions of Section 5.01 (Notices), Section
5.03 (English Language), Section 5.04 (Applicable Law and
Jurisdiction) and Section 5.10 (Expenses) shall survive such
termination. 

ARTICLE III 
Representations and Warranties

Section 3.01.
Representations and Warranties of the Company. The Company hereby
represents and warrants to the Investors that the statements contained in this
Section 3.01 are true, accurate and not misleading at the date of this
Agreement with respect to the Company and/or, as the case may be, each of its
Subsidiaries, except as otherwise set forth in the section of the disclosure
letter delivered by the Company to the Investors on the date of this Agreement
(the “Company Disclosure Letter”) that relates to such section or
in any other section of the Company Disclosure Letter to the extent it is
reasonably apparent from the text of such disclosure that such disclosure is
applicable to such other section. No disclosure made in the Company Disclosure
Letter shall be deemed adequate to disclose an exception to a representation or
warranty made herein, unless the disclosure contained therein identifies the
relevant facts and circumstances for such exception fully, fairly, specifically
and accurately.

(a)      Organization
and Authority. Each of the Company and its Subsidiaries is a legal entity
duly organized and validly existing under the laws of its place of
incorporation. The Company has the corporate power and authority to enter into,
deliver and perform its obligations under the Transaction Documents. 

(b)      Validity.
Each of the Transaction Documents has been duly authorized and executed by the
Company, and each such agreement constitutes its valid and legally binding
obligation, enforceable in accordance with its terms, except as the same may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting the rights and remedies of creditors generally and general
principles of equity. 

(c)      No
Conflict. The execution and performance by the Company of its obligations
under the Transaction Documents, including the issuance to the Investors of the
Subscription Shares upon subscription therefor, and the compliance by each of the
Company’s Subsidiaries with the provisions of the Policy Agreement, do not
(assuming all the Authorizations referred to in Section 3.01(d) (Status of Authorizations) of the Company Disclosure Letter have been
obtained): (i) conflict with or result in a breach of any of the terms,
conditions or provisions of, or constitute a default, or require any consent
under, any indenture, mortgage, agreement or other instrument or arrangement to
which the Company or any Subsidiary is a party or by which the Company or any
Subsidiary is bound; (ii) violate any of the terms or provisions of the
Company’s Charter or the respective constitutional documents of any Subsidiary,
as applicable; or (iii) violate any Authorization, judgment, decree or order or
any statute, law, rule, regulation or requirement applicable to the Company or
any Subsidiary. 

- 9 - 

(d)      Status
of Authorizations. The Authorizations specified in Section 3.01(d)
(Status of Authorizations) of the Company Disclosure Letter are all of
the Authorizations needed by the Company or any of its Subsidiaries to (i)
conduct their business (other than Authorizations (A) that are of a routine
nature and are obtained in the ordinary course of business or (B) the failure of
which to have would not (x) adversely affect in any material respect the ability
of the Company or any of its Subsidiaries to conduct its business as currently
conducted or proposed to be conducted or (y) result in a material liability) and
(ii) execute, perform and comply with their obligations under the Transaction
Documents. All Authorizations specified in Section 3.01(d) (Status of
Authorizations) of the Company Disclosure Letter have been obtained and are
in full force and effect and there are no facts or circumstances which indicate
that any of such Authorizations would or might be revoked, cancelled, varied or
not renewed. 

(e)     
Charter. The Charter delivered by the Company to the Investors is a true
and current copy of the Charter of the Company, and Section 3.01(e)
(Charter) of the Company Disclosure Letter lists all of the current
directors and officers of the Company and its Key Subsidiaries and the
respective terms of their appointments. 

(f)      Capital
Structure of the Company. 

	 	(i) 	
      The authorized capitalization of the Company is as shown
      in Section 3.01(f) (Capital Structure of the Company) of the
      Company Disclosure Letter and Section 3.01(f) (Capital Structure of the
      Company) of the Company Disclosure Letter accurately sets out the
      number and type of Equity Securities of the Company issued and outstanding
      as of the date set forth in the Company Disclosure Letter and, to the
      Company’s Knowledge, sets forth the name and number of Equity Securities
      held by each Person that beneficially owns more than five percent (5%) of
      any outstanding class of Equity Securities.

	 	 	 
	 	(ii) 	
      Except as set forth in Section 3.01(f) (Capital
      Structure of the Company) of the Company Disclosure Letter, there are
      no Equity Securities of the Company, or any agreements or undertakings to
      which the Company is a party, or by which it is bound, obligating it to
      issue, deliver, sell, repurchase or redeem or cause to be issued,
      delivered, sold, repurchased or redeemed any shares in its authorized
      capital or obligating it to grant or enter into any such option, warrant,
      call, right, commitment or agreement. All outstanding shares of Common
      Stock of the Company are duly authorized, validly issued, fully paid and
      non-assessable and are not subject to preemptive rights, rights of first
      refusal or other restrictions on transfer or third party rights (other
      than restrictions on transfer imposed by applicable U.S. and state
      securities laws).

	 	 	 
	 	(iii) 	
      The issuance of the Subscription Shares has been duly and
      validly authorized by all necessary corporate actions of the Company and
      when issued, sold and delivered in accordance with the terms of this Agreement, the Subscription
Shares will be duly and validly issued, fully paid and non-assessable, free of
all Liens and will not be subject to preemptive rights, rights of first refusal
or other restrictions on transfers (other than restrictions on transfer imposed
by applicable U.S. and state securities laws). 

- 10 - 

(g)     
No Immunity. Neither the Company nor any of its Subsidiaries nor any of
their respective properties enjoy any right of immunity from set-off, suit or
execution with respect to their respective obligations under any Transaction
Document. 

(h)      Financial
Condition. Since June 30, 2015: 

	 	(i) 	
      the business of the Company and each of its Key
      Subsidiaries has been conducted in the ordinary course so as to maintain
  the business as a going concern;

	 	 	 
	 	(ii) 	
      neither the Company nor any of its Key Subsidiaries has
  suffered any change having a Material Adverse Effect;

	 	 	 
	 	(iii) 	
      neither the Company nor any of its Subsidiaries has
      incurred any liability that is material to the Company and its
  Subsidiaries, taken as a whole;

	 	 	 
	 	(iv) 	
      neither the Company nor any of its Subsidiaries has
      undertaken or agreed to undertake any material obligation outside the
  ordinary rouse of business; and

	 	 	 
	 	(v) 	
      no dividend or distribution has been declared or paid by
  the Company.

(i)      Financial
Statements. Each of the consolidated financial statements (including, in
each case, any related notes thereto) contained in the Company SEC Documents:
(i) complied as to form in all material respects with the published rules and
regulations of the SEC with respect thereto as of their respective dates; (ii)
was prepared in accordance with the Accounting Standards applied on a consistent
basis throughout the periods therein specified (except as may be indicated in
the notes thereto and, in the case of unaudited interim financial statements, as
may be permitted by the SEC for Quarterly Reports on Form 10-Q); and (iii)
fairly presented in all material respects the consolidated financial position of
the Company and its consolidated Subsidiaries at the respective dates thereof
and the consolidated results of the Company’s operations and cash flows for the
periods indicated therein, subject, in the case of unaudited interim financial
statements, to normal and year-end audit adjustments as permitted by the
Accounting Standards and the applicable rules and regulations of the SEC.
Neither the Company nor any of its Subsidiaries has any liabilities other than
liabilities that (i) are reflected or recorded on the unaudited balance sheet of
the Company dated as of December 31, 2015 (including in the notes thereto), (ii)
were incurred since December 31, 2015 in the ordinary course of business, (iii)
are incurred in connection with the transactions contemplated by this Agreement,
or (iv) would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect. 

(j)      Taxes.
All tax returns and reports of the Company and each of its Key Subsidiaries
required by Applicable Law to be filed have been duly filed and all Taxes,
obligations, fees and other governmental charges upon the Company, its Key
Subsidiaries or their respective properties, or their income or assets, which
are due and payable or to be withheld, have been paid or withheld, other than
those presently payable without penalty or interest. All material tax returns
and reports of each of the Company’s Subsidiaries (other than the Key
Subsidiaries) required by Applicable Law to be filed have been duly filed and
all Taxes, obligations, fees and other governmental charges upon the Company’s
Subsidiaries (other than the Key Subsidiaries) or their respective properties,
or their income or assets, which are due and payable or to be withheld,
have been paid or withheld, other than those (i) presently payable without
penalty or interest or (ii) which are not material in amount. 

- 11 - 

(k)      Litigation.
Except as set forth in Section 3.01(l) (Litigation) of the Company
Disclosure Letter: 

	 	(i) 	
      Neither the Company nor any of its Subsidiaries is
      involved in any litigation, arbitration, administrative, regulatory or
      governmental proceedings or investigations in each case that (A) involves
      an amount in controversy in excess of $150,000 (or in the case of related
      claims, the amount in controversy under all such claims in aggregate
      exceeds $150,000), (B) seeks injunctive relief that would be material to
      the Company and its Subsidiaries taken as a whole, or (C) seeks to impose
      any legal restraint on or prohibition against or limit in any material
      respect the Company’s or any Subsidiaries’ ability to operate its business
      as currently conducted or as proposed to be conducted. To the Company’s
      Knowledge, no such proceedings or investigations are threatened against
      the Company or any of its Subsidiaries. The Company is not aware of any
      fact or circumstance which is likely to give rise to any such proceedings
      or investigations.

	 	 	 
	 	(ii) 	
      No judgment or order has been issued against the Company
      or any of its Subsidiaries which has or may reasonably be expected to have
      a Material Adverse Effect.

	 	 	 
	 	(iii) 	
      Neither the Company nor any of its Subsidiaries has been
      charged, convicted, fined or otherwise sanctioned in any litigation,
      administrative, regulatory or criminal investigation or proceeding or
      freezing of assets by any Authority involving the Company or any of its
      Subsidiaries or their respective employees with regard to money laundering
      or financing of terrorism.

(l)     
Compliance with Law. The Company and each of its Subsidiaries is, and
since January 1, 2014 has been, in compliance in all material respects with all
Applicable Laws (whether civil, criminal, corporate or administrative),
subordinate legislation, treaties, directives, decisions, bylaws, circulars,
codes, orders, notices, demands, decrees, injunctions, guidance, judgments or
resolutions of any Authority including, without limitation, all Applicable
S&E Laws.

(m)     
Environmental Matters. 

	 	(i) 	
      There are no material social or environmental risks or
      issues in respect of the Company’s current or currently proposed
      operations other than as set forth in Section 3.01(m) (Environmental
      Matters) of the Company Disclosure Letter.

	 	 	 
	 	(ii) 	
      Neither the Company nor any Subsidiary has received or is
      aware of: (A) any existing or threatened complaint, order, directive,
      claim, citation or notice from any Authority; or (B) any written
      communication from any Person, in either case, concerning the failure by
      the Company or any of its Subsidiaries to undertake Company Operations or
      activities in accordance with the S&E
Requirements.

(n)     
Sanctionable Practices. Neither the Company nor any of its Affiliates,
nor any Person acting on its or their behalf, has committed or engaged in, with
respect to any transaction contemplated by this Agreement, any Sanctionable
Practice. None of the Company or any of its Subsidiaries, or, to the Company’s
Knowledge, any counterparty of the Company or any Subsidiary in respect of a
material transaction or any shareholder that Controls the Company, nor, to the
Company’s Knowledge, any director, officer, agent, employee or Affiliate of the
Company or any Subsidiary or any shareholder that Controls the Company, or any
counterparty of the Company or any Subsidiary in respect of a material transaction, is currently a target of any
economic sanctions administered by the Office of Foreign Assets Control of the
U.S. Treasury Department. 

- 12 - 

(o)      Insurance.
The Company and each of its Subsidiaries maintains insurance policies with
reputable insurers that cover such risks and contain such policy limits, types
of coverage as are adequate to insure against risks to which the Company, its
Subsidiaries and their respective employees, business, properties and other
assets would reasonably be expected to be exposed to in the operation of the
business as currently conducted. All of these policies are valid and enforceable
policies, all premiums due and payable under all these policies have been paid
and the Company and its Subsidiaries are otherwise in compliance in all material
respects with the terms of the policies. None of these policies is void or
voidable and neither the Company nor any of its Subsidiaries has done anything
or omitted to do anything that would make any policy void or voidable. The
Company and each of its Subsidiaries has no Knowledge of any threatened
termination of, or material premium increase with respect to, any of these
policies. No material claim is outstanding under any of these policies and no
event has occurred and, to the Company’s Knowledge, no circumstance exists that
gives rise or is likely to give rise to a material claim under any policy. The
Company has made available to the Investors a copy of each insurance policy
maintained by the Company and its Subsidiaries as of the date of this Agreement.

(p)      Subsidiaries
and Other Equity Investments. The Persons listed in Section 3.01(p)
(Subsidiaries and Other Equity Investments) of the Company Disclosure
Letter are all of the Subsidiaries of the Company. Each such Subsidiary has the
ownership, domicile and head office identified therein. There is no Lien or
other third party right over the share capital or other equity interest of any
Subsidiary and there is no agreement to create any Lien or any such right.
Except as set forth in Section 3.01(p) (Subsidiaries and Other Equity
Investments) of the Company Disclosure Letter, there are no agreements or
undertakings to which the Company or any of its Subsidiaries is a party, or by
which any of them is bound, obligating any of them to issue, deliver, sell,
repurchase or redeem or cause to be issued, delivered, sold, repurchased or
redeemed any equity interest of any Subsidiary or obligating it to grant or
enter into any such option, warrant, call, right, commitment or agreement. Other
than its Subsidiaries listed in Section 3.01(p) (Subsidiaries and Other
Equity Investments) of the Company Disclosure Letter the Company does not
own or control, directly or indirectly, any share capital or other equity
interest in any other Person and has not agreed or committed to acquire any such
interest. Substantially all of the Company Operations are conducted by the
Company or the Key Subsidiaries. 

(q)      UN
Security Council Resolutions. Neither the Company nor any of its
Subsidiaries nor any Person acting on its or their behalf, has entered into any
transaction or engaged in any activity prohibited by any resolution issued by
the United Nations Security Council under Chapter VII of the UN Charter.

(r)      Criminal
Offenses. Neither the Company nor its Subsidiaries nor any Person acting on
its or their behalf whose acts could incur the Company’s or any Subsidiary’s
vicarious liability has carried out any actions or made any omissions which
could result in the Company or any Subsidiary incurring criminal sanctions. 

(s)     
Restrictions on Business Activities. There is no agreement, judgment,
injunction, order, decree, proceeding or, to the Company’s Knowledge, ongoing or
threatened investigation imposing or threatening to impose any penalty on the
Company or any of its Key Subsidiaries or, which has or could reasonably be
expected to have the effect of prohibiting or impairing in any material respect
any of its current or future business practices, its acquisition of property or
the conduct of its business as it is currently conducted or as proposed to be
conducted. 

- 13 - 

(t)      Related
Party Transactions. There is not, and there has not been at any time since
June 30, 2015, any agreement, arrangement or obligation (whether legally
enforceable or not) to which the Company or any of its Subsidiaries is or was a
party and which involves any director, officer, employee, agent or shareholder
of the Company (or any of their immediate family members or respective
Affiliates) that would be required to be disclosed under applicable SEC rules,
other than those described in Section 3.01(t) (Related Party
Transactions) of the Company Disclosure Letter. No director or executive
officer of the Company, or any of their respective Affiliates, has any direct or
indirect ownership interest in any Person that is an Affiliate of the Company or
with which the Company has a business relationship or in any Person that
competes with the Company. 

(u)     
Title to and Condition of Property. The Company and each of its Key
Subsidiaries have: (i) valid title free and clear of all Liens (other than
Permitted Liens) to all of the property and assets, movable and immovable,
reflected in the Company’s most recent balance sheet included in the
consolidated financial statements (except assets sold or otherwise disposed of
since such date in the ordinary course of business); and (ii) with respect to
leased properties and assets, valid leasehold interests therein free and clear
of all Liens (other than Permitted Liens). The assets of the Company and each of
its Key Subsidiaries that are used in the Company Operations are, in all
material respects, in good operating condition and repair, subject to normal
wear and tear not caused by neglect, and are adequate and suitable for the
purposes for which they are currently being used. All properties used in the
Company Operations are reflected in the Company’s most recent balance sheet
included in the consolidated financial statements to the extent the Accounting
Standards require the same to be reflected. 

(v)     
Books and Records. The books and records of the Company and its Key
Subsidiaries, including, without limitation, its stock record books and minute
books, are complete and correct in all material respects and accurately and
fairly reflect all meetings and other corporate actions of the Company’s and its
Key Subsidiaries’ stockholders, board of directors and committees and all
material information relating to its business, the nature, acquisition,
maintenance, location and character of its assets, and the nature of all
transactions giving rise to its obligations or accounts receivable. 

(w)     
Material Contracts. Section 3.01(w) (Material Contracts) of the
Company Disclosure Letter sets forth a complete list of all currently effective
written or oral:

	 	(i) 	
      agreements, arrangements or obligations to which the
      Company or any of its Subsidiaries is a party that would constitute a
      “material contract” under Item 6.01 of Regulation S-K under the Securities
      Act and the Exchange Act;

	 	 	 
	 	(ii) 	
      agreements, arrangements or other obligations relating to
      indebtedness owed by the Company or any of its Subsidiaries;

	 	 	 
	 	(iii) 	
      stockholders agreements relating to Equity Securities of
      the Company or equity securities of any of its Subsidiaries or to which
      the Company or any of its Subsidiaries is a party;

	 	 	 
	 	(iv) 	
      employment, severance and non-compete agreements or
      arrangements of the Company or any of its Key Subsidiaries (A) with any
      executive officer (as such term is defined in Rule 3(b)(7) of the Exchange
      Act) of the Company or any Key Subsidiary (and for this purpose such Key
      Subsidiary shall be deemed the “registrant” for purposes of Rule 3(b)(7))
      or (B) in excess of two hundred fifty thousand Dollars ($250,000) per
      annum each (or the equivalent in any other currency); and

	 	 	 
	 	(v) 	
      other agreements, arrangements and obligations to which
      the Company or any of its Subsidiaries is a party that (A) are material to
      the Company and its Subsidiaries, taken as a whole, even if entered into in the ordinary course
of business, (B) were entered into outside the ordinary course of business or
(C) are not on arm’s-length terms. 

- 14 - 

With respect to each agreement, arrangement or obligation to
which the Company or any of its Key Subsidiaries is a party or to which any of
their respective properties are subject (the “Company Agreements”),
neither the Company nor any of its Subsidiaries nor, to the Company’s Knowledge,
any other party is in breach or default in any material respect. No event has
occurred which, with notice or lapse of time or both, would: (A) constitute a
breach or default in any material respect by the Company or any of its
Subsidiaries, or, to the Company’s Knowledge, by any such other party to the
relevant Company Agreement; or (B) permit termination, modification or
acceleration of or under the relevant Company Agreement. 

(x)      Labor
Matters.

	 	(i) 	
      The Company or one of its Subsidiaries is a party to the
      collective bargaining agreements and other labor union contracts set forth
      in Section 3.01(x) of the Company Disclosure Letter. There is no material
      activity or proceeding of any labor union to organize its employees and
      there are no ongoing or, to the Company’s Knowledge, threatened strikes,
      slowdowns or work stoppages by employees of the Company or any of its Key
      Subsidiaries or any contractor with respect to any material operations of
      the Company or any of its Key Subsidiaries other than as set forth in
      Section 3.01(x) of the Company Disclosure Letter.

	 	 	 
	 	(ii) 	
      The Company has furnished to the Investors true and
      complete copies of the documents embodying each of the Company’s Employee
      Plans and related plan documents. Each of the Company’s Employee Plans
      complies with Applicable Law and regulations and will not negatively or
      materially affect the Company’s ability to fulfill its obligations under
      this Agreement or the Policy Agreement.

(y)     
Intellectual Property. Section 3.01(y) of the Company Disclosure Letter
contains an accurate and complete list of all Intellectual Property owned (in
whole or in part), licensed to any extent or used or anticipated to be used in
and material to the conduct of the business as currently conducted or proposed
to be conducted, whether in the name of the Company, its Subsidiaries, any of
its employees or otherwise, that is (i) included in sub-clauses (a), (b) and (c)
of the definition of Intellectual Property or (ii) included in sub-clauses (e)
and (f) of such definition to the extent such item has been registered or an
application for registration has been filed. The Company or a Key Subsidiary
owns or has the valid right to use all Intellectual Property that is material to
the operation of the business as currently conducted or proposed to be conducted
by the Company and its Subsidiaries. The Company or a Key Subsidiary has secured
from all parties (including employees) who have created any portion of, or
otherwise have any rights in or to, all Intellectual Property used by the
Company or a Key Subsidiary valid and enforceable written assignments of any
such work, invention, improvements or other rights to the Company or a Key
Subsidiary to the extent necessary to vest valid title to such Intellectual
Property in the Company or a Key Subsidiary. Each item constituting part of the
Intellectual Property set forth in Section 3.01(y) of the Company Disclosure
Letter, to the extent indicated in Section 3.01(y) of the Company Disclosure
Letter, is duly registered with, filed in or issued by, as the case may be, the
appropriate Authority as indicated in the Company Disclosure Letter and such
registrations, filings and issuances remain in full force and effect. The
ownership and use of Intellectual Property by the Company and its Subsidiaries
do not infringe in any material respect any Intellectual Property right of any
Person. No claim, written or oral, has been asserted or, to the Company’s
Knowledge, could be asserted which threatens the use of any Intellectual
Property by the Company or a Key Subsidiary in a manner consistent with past
practice. To the Company’s Knowledge no Person is engaging in any activity that
infringes in any material respect upon the Intellectual Property owned by the Company or
a Subsidiary or upon the rights of the Company or its Subsidiaries in or to any
Intellectual Property. 

- 15 - 

(z)      Regulatory
Reporting.

	 	(i) 	
      The Company has timely filed with or furnished to, as
      applicable, the SEC all registration statements, prospectuses, reports,
      schedules, forms, statements and other documents (including exhibits and
      all other information incorporated by reference) required to be filed or
      furnished by it with the SEC since June 30, 2014 (the “Company SEC
      Documents”). As of their respective filing dates (or, if amended or
      superseded by a subsequent filing, as of the date of the last such
      amendment or superseding filing prior to the date hereof), each of the
      Company SEC Documents complied as to form in all material respects with
      the applicable requirements of the Securities Act and the Exchange Act,
      and the rules and regulations of the SEC thereunder applicable to such
      Company SEC Documents. None of the Company SEC Documents, including any
      financial statements, schedules or exhibits included or incorporated by
      reference therein at the time they were filed (or, if amended or
      superseded by a subsequent filing, as of the date of the last such
      amendment or superseding filing prior to the date hereof), contained any
      untrue statement of a material fact or omitted to state a material fact
      required to be stated therein or necessary in order to make the statements
      therein, in light of the circumstances under which they were made, not
      misleading. None of the Company’s Subsidiaries is required to file or
      furnish any forms, reports or other documents with the SEC. There are no
      outstanding or unresolved comments in comment letters received from the
      SEC by the Company. To the Company’s Knowledge, none of the Company SEC
      Documents is the subject of any ongoing SEC review, outstanding SEC
      comment or outstanding SEC investigation.

	 	 	 
	 	(ii) 	
      The Company and each of its Subsidiaries has established
      and maintains a system of “internal control over financial reporting” (as
      defined in Rules 13a-15(f) and 15d- 15(f) of the Exchange Act) that is
      sufficient to provide reasonable assurance (i) regarding the reliability
      of financial reporting and the preparation of financial statements for
      external purposes in accordance with the Accounting Standards, (ii) that
      receipts and expenditures of the Company and its Subsidiaries are being
      made only in accordance with authorizations of management and the Board,
      and (iii) regarding prevention or timely detection of the unauthorized
      acquisition, use or disposition of the Company’s and its Subsidiaries’
      assets that could have a material effect on the Company’s financial
      statements.

	 	 	 
	 	(iii) 	
      The Company’s “disclosure controls and procedures” (as
      defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) are designed
      to ensure that all information (both financial and non-financial) required
      to be disclosed by the Company in the reports that it files or submits
      under the Exchange Act is recorded, processed, summarized and reported
      within the time periods specified in the rules and forms of the SEC, and
      that all such information is accumulated and communicated to the Company’s
      management as appropriate to allow timely decisions regarding required
      disclosure and to make the certifications of the chief executive officer
      and chief financial officer of the Company required under the Exchange Act
      with respect to such reports. The Company has disclosed, based on its most
      recent evaluation of such disclosure controls and procedures prior to the
      date of this Agreement, to the Auditors and the audit committee of the
      Board and on Section 3.01(z) of the Company Disclosure Letter (i) any
      significant deficiencies and material weaknesses in the design or
      operation of internal control over financial reporting that could
      adversely affect in any material respect the Company’s ability to record, process,
summarize and report financial information, and (ii) any fraud, whether or not
material, that involves management or other employees who have a significant
role in the Company’s internal control over financial reporting. Since June 30,
2014, neither the Company nor any of its Subsidiaries (including any employee
thereof) nor, to the Company’s Knowledge, the Auditors has identified or been
made aware of (i) any significant deficiency or material weakness in the system
of internal accounting controls utilized by the Company and its Subsidiaries,
(ii) any fraud, whether or not material, that involves the Company’s management
or other employees who have a role in the preparation of financial statements or
the internal accounting controls utilized by the Company and its Subsidiaries or
(iii) any claim or allegation regarding any of the foregoing. For purposes of
this Agreement, the terms “significant deficiency” and “material weakness” shall
have the meaning assigned to them in Appendix A to Public Company Accounting
Oversight Board Auditing Standard No. 5, as in effect on the date of this
Agreement. 

- 16 - 

	 	(iv) 	
      Since June 30, 2014, neither the Company nor any of its
      Subsidiaries nor, to the Company’s Knowledge, any director, officer,
      employee, Auditor, accountant, consultant or representative of the Company
      or any of its Subsidiaries has received or otherwise had or obtained
      Knowledge of any substantive complaint, allegation, assertion or claim,
      whether written or oral, that the Company or any of its Subsidiaries has
      engaged in questionable accounting or auditing practices. Since June 30,
      2014, to the Company’s Knowledge, no current or former attorney
      representing the Company or any of its Subsidiaries has reported evidence
      of a material violation of securities laws, breach of fiduciary duty or
      similar violation by the Company or any of its officers, directors,
      employees or agents to the Company Board or any committee thereof or to
      any director or executive officer of the Company.

	 	 	 
	 	(v) 	
      Neither the Company nor any of its Subsidiaries is a
      party to, or has any commitment to become a party to any “off-balance
      sheet arrangements” (as defined in Item 303(a) of Regulation S-K under the
      Exchange Act).

	 	 	 
	 	(vi) 	
      Each of the principal executive officer and the principal
      financial officer of the Company (or each former principal executive
      officer and each former principal financial officer of the Company, as
      applicable) has made all certifications required by Rule 13a-14 or 15d-14
      under the Exchange Act and Sections 302 and 906 of the Sarbanes-Oxley Act
      of 2002 (including the rules and regulations promulgated thereunder, the
      “Sarbanes-Oxley Act”) with respect to the applicable Company
      SEC Documents, and the statements contained in such certifications are
      true and accurate in all material respects. For purposes of this
      Agreement, “principal executive officer” and “principal financial officer”
      shall have the meanings given to such terms in the Sarbanes-Oxley Act.
      Neither the Company nor any of its Subsidiaries has outstanding (nor has
      arranged or modified since the enactment of the Sarbanes-Oxley Act) any
      “extensions of credit” (within the meaning of Section 402 of the Sarbanes-
      Oxley Act) to directors or executive officers (as defined in Rule 3b-7
      under the Exchange Act) of the Company or any of its Subsidiaries. The
      Company is otherwise in compliance with all applicable provisions of the
      Sarbanes-Oxley Act and the applicable listing and corporate governance
      rules of Nasdaq and the listing requirements of the JSE Limited.

	 	 	 
	 	(vii) 	
      To the Company’s Knowledge, since June 30, 2014 no
      employee of the Company or any of its Subsidiaries has provided or is
      providing information to any law enforcement agency regarding the
      commission or possible commission of any crime or the violation or possible violation of any Applicable
Law of the type described in Section 806 of the Sarbanes-Oxley Act by the
Company or any of its Subsidiaries. Since June 30, 2014, neither the Company nor
any of its Subsidiaries nor, to the Knowledge of the Company, any director,
officer, employee, contractor, subcontractor or agent of the Company or any such
Subsidiary has discharged, demoted, suspended, threatened, harassed or in any
other manner discriminated against an employee of the Company or any of its
Subsidiaries in the terms and conditions of employment because of any lawful act
of such employee described in Section 806 of the Sarbanes-Oxley Act. 

- 17 - 

(aa)      Provision
of Financial Services. Neither the Company, EasyPay (Pty) Ltd., Cash
Paymaster Services (Pty) Ltd, Moneyline Financial Services (Pty) Ltd nor any
other Subsidiary provide or have ever provided any financial services, including
any advice or intermediary services, in South Africa (as defined by and
regulated under the South African Financial Advisory and Intermediary Services
Act (“FAIS”) prior to receipt of the relevant FAIS licenses. 

(bb)     
Brokers. No broker, investment banker, financial advisor or other Person
is entitled to any broker’s, finder’s, financial advisor’s or other similar fee
or commission from the Company or any of its Subsidiaries in connection with the
transactions contemplated by this Agreement. 

(cc)     
Disclosure. None of this Agreement, the Policy Agreement, the Company’s
Charter, or certificates or schedules made and delivered to the Investors
pursuant hereto (including the Company Disclosure Letter), when read together,
contains any untrue statement of a material fact or omits to state a material
fact necessary to make the statements herein or therein not misleading in light
of the circumstances under which they were made. The information provided by the
Company in that certain virtual data room (net1ifc.net1.com), including
the due diligence questionnaires completed by the Company, when taken together,
does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements herein or therein not misleading
in light of the circumstances under which they were made. Except as set forth in
the Company Disclosure Letter, to the Company’s Knowledge there is no material
fact relating to the Company, any of the Key Subsidiaries or their respective
businesses (other than facts of a general economic nature) that has not been
disclosed to the Investors. 

Section 3.02.
Representations and Warranties of the Investors. Each Investor,
severally and not jointly, hereby represents and warrants to the Company that
each of the below statements is true, accurate and not misleading as to itself
at the date of this Agreement: 

(a)      Organization and
Authority. In the case of (i) IFC, it is an international organization
established by Articles of Agreement among its member countries and has the
corporate power and authority to enter into, deliver and perform its obligations
under this Agreement, (ii) each of ALAC and FIG, it is duly organized and
validly existing as a limited partnership under the laws of the United Kingdom,
with the limited partnership power and authority to enter into, deliver and
perform its obligations under this Agreement and (iii) AFCAP, it is duly
organized and validly existing as a limited company under the laws of Mauritius,
with the limited company power and authority to enter into, deliver and perform
its obligations under this Agreement; 

(b)      Validity. Each of
the Transaction Documents has been duly authorized and executed by it and
constitutes its valid and legally binding obligation and enforceable in
accordance with its terms, except as the same may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting the
rights and remedies of creditors generally and general principles of equity;

- 18 - 

(c)      No Conflict. The
execution, delivery and performance of this Agreement will not contravene any
law, regulation, order, decree or Authorization applicable to it or any
provision of its organizational documents; 

(d)      Status of
Authorizations. It has taken all appropriate and necessary action to
authorize the execution and delivery of this Agreement and the performance of
its obligations hereunder; 

(e)     
Certain Trading Activities. It has not directly or indirectly, nor has
any Person acting on behalf of or pursuant to any understanding with it, engaged
in any transactions in the Equity Securities of the Company (including, without
limitation, any “short sales” (as defined in Rule 200 promulgated under
Regulation SHO under the Exchange Act) involving the Company’s securities)
during the period commencing on March 3, 2016 and ending immediately prior to
the execution of this Agreement; and 

(f)      Securities Laws. It:

	 	(i) 	
      is knowledgeable and experienced in financial and
      business matters, has expertise in assessing credit, market and all other
      relevant risk and is capable of evaluating independently the merits, risks
      and suitability of investing in the Subscription Shares;

	 	 	 
	 	(ii) 	
      has made its own independent investment decision
      regarding the Subscription Shares with a full understanding of all of the
      terms, conditions and risks and willingly assumes those terms, conditions
      and risks;

	 	 	 
	 	(iii) 	
      acknowledges that the Subscription Shares have not been,
      and when issued will not be, registered under the Securities Act, the
      securities laws of any state of the United States or the securities laws
      of any other country, and the Subscription Shares may not be sold,
      transferred or otherwise disposed of without registration under the
      Securities Act or unless such registration is not required, and there is
      no assurance that any exemption from such registration will be
      available;

	 	 	 
	 	(iv) 	
      acknowledges that the Subscription Shares are “restricted
      securities” within the meaning of Rule 144 under the Securities Act, and
      that the book-entry positions representing the Subscription Shares will
      bear a restrictive notation (in the Company’s standard form) in the books
      and records of the Company’s transfer agent;

	 	 	 
	 	(v) 	
      understands that, by its subscription, purchase or
      holding of the Subscription Shares, it is assuming and is capable of
      bearing the risk of loss that may occur with respect to the Subscription
      Shares; and

	 	 	 
	 	(vi) 	
      is an accredited investor (as defined in Rule 501(a)(3)
      of Regulation D promulgated under the Securities
Act).

     (g)      Brokers.
No broker, investment banker, financial advisor or other Person is entitled to
any broker’s, finder’s, financial advisor’s or other similar fee or commission
from any of the Investors in connection with the transactions contemplated by
this Agreement. 

     (h)      Capital
Available. Each of ALAC, FIG and AFCAP has uncalled capital commitments in
excess of the amount of its respective aggregate Subscription Price set forth
on Schedule 1. IFC has available funds in excess of the
amount of its aggregate Subscription Price set forth on Schedule 1. 

- 19 - 

Section 3.03.
Reliance.

(a)      Each
Party acknowledges that it makes the representations and warranties under this
Article III with the intention of inducing the Investors and the
Company, as applicable, to enter into the Transaction Documents and to perform
the transactions contemplated hereby and thereby.

(b)      Each
of the representations and warranties is to be construed independently and
(except where this Agreement provides otherwise) is not limited by any provision
of this Agreement or another representation and/or warranty. 

Section 3.04. Company
Disclosure Letter. A reference to any facts and circumstances being
disclosed shall be deemed to be a reference to them being fully, fairly,
specifically and accurately disclosed in the Company Disclosure Letter in such a
manner that: 

	 	(a) 	
      in the context of the disclosures contained in the
      Company Disclosure Letter:

	 	(i) 	
      the significance of the information disclosed and its
      relevance to a particular representation and/or warranty shall be
      highlighted by the Company in a manner reasonably expected to be
      understandable by the Investors, taking into account the paragraphs or
      subject matters in relation to which the information was disclosed;
    and

	 	 	 
	 	(ii) 	
      there is not omitted from the information disclosed any
      information which would have the effect of rendering the information so
      disclosed misleading in any respect; and

	 	(b) 	
      in the context of any document treated as disclosed by
      the Company Disclosure Letter, the matter disclosed is reasonably apparent
      from the terms of the document,

and nothing disclosed by the Company to the Investors other
than in the Company Disclosure Letter and in accordance with the provisions of
this Section 3.04 shall constitute disclosure to the Investors for the
purposes of this Agreement. 

Section 3.05. Survival of
Representations and Warranties. The representations and warranties set
forth in this Article III shall continue in full force and effect and
survive the Investors Subscription. 

Section 3.06.
Indemnity. The Company hereby agrees that it shall
indemnify, defend and hold harmless each Investor from, against and in respect
of any damages, losses, charges, liabilities, claims demands, actions, suits,
proceedings, payments, judgments, settlements, assessments, deficiencies,
interest and reasonable and documented costs and expenses (including reasonable
and documented attorneys’ fees) imposed on, sustained, incurred or suffered by,
or asserted against, such Investor (whether in respect of third party claims,
claims between the parties hereto, or otherwise) directly or indirectly relating
to or arising out of any breach by the Company of any representation or warranty
made by it in this Agreement. 

- 20 - 

ARTICLE IV 
Conditions of Investors Subscription

Section 4.01. Conditions of
the Investors Subscription. The obligation of each Investor to make its
Investors Subscription is subject to the fulfillment, to such Investor’s
reasonable satisfaction, prior to or concurrently with the making of the
Investors Subscription, of the following conditions: 

(a)      Representations
and Warranties. 

	 	(i) 	
      The representations and warranties made by the Company in
      Sections 3.01(a), (b), (f), (g), (p)
      and (bb), and in the corresponding sections of the Company
      Disclosure Letter and in any schedule, exhibit or certificate delivered by
      the Company pursuant to this Agreement, remain true and correct in all
      respects immediately prior to the Investors Subscription; and

	 	 	 
	 	(ii) 	
      The representations and warranties made by the Company
      (other than those in Sections 3.01(a), (b), (f),
      (g), (p) and (bb)), and in the corresponding sections
      of the Company Disclosure Letter and in any schedule, exhibit or
      certificate delivered by the Company pursuant to this Agreement, (x) that
      are qualified by materiality remain true and correct in all respects and
      (y) that are not so qualified by materiality remain true and correct in
      all material respects, in each case immediately prior to the Investors
      Subscription;

(b)     
Performance; No Breaches. All of the agreements and covenants of the
Company to be performed prior to the Investors Subscription pursuant to each
Transaction Document have been duly performed in all material respects, and no
breach (or any event which, with notice, lapse of time, the making of a
determination or any combination, would become a breach) under any Transaction
Document has occurred and is continuing; 

(c)      Authorizations.
The Company has obtained and provided to the Investors copies of all
Authorizations required in connection with the execution, delivery and
performance by the Company of the Transaction Documents and all those
Authorizations are in full force and effect; 

(d)      No
Material Adverse Effect. Nothing has occurred which has or may reasonably be
expected to have since the date of this Agreement, a Material Adverse Effect;

(e)      Expenses.
The Investors have received payment of the $150,000 due pursuant to Section 7 of
that certain Appraisal Letter, dated November 6, 2015, between the Company and
IFC; 

(f)      Environmental
Matters. The Company has complied with all matters set forth in the Action
Plan required to be completed prior to the Investors Subscription, as set forth
in the Action Plan; 

(g)      Company
Certifications. The Investors have received certifications by the Company,
substantially in the form set forth in Schedule 2 (Form of Closing
Notice), with respect to the conditions specified in this Section
4.01 and expressed to be effective as of the date of the Investors
Subscription; 

(h)       Opinion of Counsel. The Investors have received a legal
  opinion, in substantially the form provided by the Company’s counsel to the
  Investors on April 10, 2016 and otherwise in form and substance reasonably
  satisfactory to the Investors, from counsel for the Company; 

- 21 - 

(i)      Appointment
of Agent for Service. The Investors have received from the Company, to the
satisfaction of the Investors, a copy of the appointment by the Company of an
agent for service of process in New York pursuant to Section 5.04
(Applicable Law and Jurisdiction), substantially in the form set forth in
Schedule 3 (Form of Appointment of Agent for Service of Process);

(j)      Appointment
of Auditors. The Company (i) has authorized and instructed the Auditors, in
the form set forth in Schedule 5 (Form of Letter to Company’s
Auditors), to communicate directly with the Investors and (ii) has delivered
such documents, if any, as such firm has required prior to the Subscription Date
in order to comply with such request; 

(k)     
Certificate of Incumbency and Authority. The Investors have received a
Certificate of Incumbency and Authority from the Company; 

(l)      Transaction
Documents. Each Investor has received a counterpart of each of the
Transaction Documents, duly executed and delivered by all other parties thereto;

(m)      Listing.
The Subscription Shares shall have been approved for listing on Nasdaq, subject
to official notice of issuance, and the JSE Limited; and 

(n)      Form
10-Q. If available, the Company has provided to the Investors a copy of the
most recent draft of its Quarterly Report on Form 10-Q for the quarter ended
March 31, 2016. 

ARTICLE V 
Miscellaneous 

Section 5.01.
Notices.

(a)     
Any notice, request or other communication to be given or made under this
Agreement shall be in writing. Subject to Section 5.04
(Applicable Law and Jurisdiction), any such communication to the
Company shall be delivered by email and any such communication by any other
party shall be delivered by hand, established courier service or email (and
facsimile in the case of IFC) to the party to which it is required or permitted
to be given or made at such party’s address specified below or at such other
address as such party has from time to time designated by written notice to the
other parties hereto, and shall be effective upon the earlier of (a) actual
receipt and (b) deemed receipt under Section 5.01(b) below. 

For the Company: 

Net 1 UEPS Technologies, Inc.

President Place, 4th Floor, 
Cnr. Jan Smuts Avenue and Bolton
Road 
Rosebank, Johannesburg 2196, South Africa 
Attention: Mr. Serge C.P.
Belamant, Chief Executive Officer 
Telephone: 
Email: sergeb@net1.com

- 22 - 

For IFC: 

International Finance Corporation

2121 Pennsylvania Avenue, N.W. 
Washington, D.C. 20433 
United States
of America 
Attention: Director, TMT, Venture Capital & Funds

Facsimile: +1 (202) 522-3743 
Email: FinTech@ifc.org 

With a copy (in the case of
communications relating to payments) sent to the attention of the Director,
Department of Financial Operations, at: 

Facsimile: +1 (202) 522-3064 

For ALAC: 

IFC African, Latin American and
Caribbean Fund, LP 
2121 Pennsylvania Avenue, N.W. 
Washington, D.C. 20433

United States of America 
Attention: Head, IFC African, Latin American
and Caribbean Fund, LP 
Email: amcfinance@ifc.org 

For FIG: 

IFC Financial Institutions Growth Fund,
LP 
2121 Pennsylvania Avenue, N.W. 
Washington, D.C. 20433 
United
States of America 
Attention: Head, IFC Financial Institutions Growth Fund,
LP 
Email: amcfinance@ifc.org 

For AFCAP: 

Africa Capitalization Fund, Ltd.

2121 Pennsylvania Avenue, N.W. 
Washington, D.C. 20433 
United States
of America 
Attention: Head, Africa Capitalization Fund, Ltd. 
Email:
amcfinance@ifc.org 

(b)     
Unless there is reasonable evidence that it was received at a different time,
notice pursuant to this Section 5.01 is deemed given if: (i) delivered by
hand, when left at the address referred to in Section 5.01(a); (ii) sent
by established courier service within a country, three (3) Business Days after
posting it; (iii) sent by established courier service between two countries, six
(6) Business Days after posting it; and (iv) sent by email, when receipt has
been confirmed by telephone and a copy has been sent by established courier
service; provided that in the case of IFC, any notice sent by email shall also
be sent by facsimile and will be deemed given when confirmation of its
transmission has been recorded by the sender’s facsimile machine. 

- 23 - 

Section 5.02. Saving of
Rights.

(a)      The
rights and remedies of the Investors in relation to any misrepresentation or
breach of warranty on the part of the Company shall not be prejudiced by any
investigation by or on behalf of the Investors into the affairs of the Company,
by the execution or the performance of this Agreement or by any other act or
thing by or on behalf of the Investors which might prejudice such rights or
remedies. 

(b)      No
course of dealing and no failure or delay by the Investors in exercising any
power, remedy, discretion, authority or other right under this Agreement or any
other agreement shall impair, or be construed to be a waiver of or an
acquiescence in, that or any other power, remedy, discretion, authority or right
under this Agreement, or in any manner preclude its additional or future
exercise. 

Section 5.03. English
Language. All documents to be provided or communications to be given or
made under this Agreement shall be in English and, where the original version of
any such document or communication is not in English, shall be accompanied by an
English translation certified by an Authorized Representative to be a true and
correct translation of the original. Any Investor may, if it so requires, obtain
an English translation of any document or communication received in any other
language at the cost and expense of the Company (except for documents or
communications provided by any Investor). The Investors and the Company may deem
any such translation to be the governing version. 

Section 5.04. Applicable
Law and Jurisdiction.

(a)      This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York, United States of America, without giving effect to principles
or rules of conflict of laws to the extent such principles or rules would
require or permit the application of the laws of another jurisdiction.

(b)     
Each of the Company and each Investor irrevocably agrees to venue being laid in
the courts of the United States of America located in the Southern District of
New York or in the courts of the State of New York located in the Borough of
Manhattan, in any legal action, suit or proceeding arising out of or relating to
this Agreement, and waives any objections to venue based on grounds of forum non
conveniens or inconvenient forum. Nothing contained herein shall be construed as
a waiver of the right of the Company or any Investor to seek removal to federal
court in any action brought hereunder. 

(c)     
For the exclusive benefit of the Investors, the Company irrevocably also submits
to personal jurisdiction of any such court in any such action, suit or
proceeding. Final judgment against the Company in any such action, suit or
proceeding shall be conclusive and may be enforced in any other jurisdiction by
suit on the judgment, a certified or exemplified copy of which shall be
conclusive evidence of the judgment, or in any other manner provided by law.

(d)      The
parties acknowledge and agree that no provision of this Agreement, nor the
consent to venue by IFC in subsection (a), in any way constitutes or implies a
waiver, termination or modification by IFC of any privilege, immunity or
exemption of IFC granted in the Articles of Agreement establishing IFC,
international conventions, or Applicable Law. 

(e)      The
Company hereby irrevocably designates, appoints and empowers Corporation Service
Company with offices currently located at 1180 Avenue of the Americas, Suite
210, New York, New York 10036, as its authorized agent solely to receive for and
on its behalf service of any summons, complaint or other legal process in any
action, suit or proceeding the Investors may bring in the State of New York in
respect of this Agreement. 

- 24 - 

(f)      As
long as this Agreement remains in force, the Company shall maintain a duly
appointed and authorized agent to receive for and on its behalf service of any
summons, complaint or other legal process in any action, suit or proceeding the
Investors may bring in New York, New York, United States of America, with
respect to this Agreement. The Company shall keep the Investors advised of the
identity and location of such agent. 

(g)     
The Company also irrevocably consents to the service of such papers being made
by mailing copies of the papers to the Company at its address and in the manner
specified pursuant to Section 5.01 (Notices). In such a case, the
Investors shall also send by email, or have sent by email, a copy of the papers
to the Company. 

(h)     
Service in the manner provided in Sections 5.04(e), (f) and
(g) in any action, suit or proceeding will be deemed personal service,
will be accepted by the Company as such and will be valid and binding upon the
Company for all purposes of any such action, suit or proceeding. 

(i)      THE
COMPANY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY
AND ALL RIGHTS TO DEMAND A TRIAL BY JURY IN ANY SUCH ACTION, SUIT OR PROCEEDING
BROUGHT AGAINST THE COMPANY BY ANY INVESTOR. 

(j)     
The Company hereby acknowledges that IFC shall be entitled under Applicable Law,
including the provisions of the International Organizations Immunities Act, to
immunity from a trial by jury in any action, suit or proceeding arising out of
or relating to this Agreement or the transactions contemplated hereby brought
against IFC in any court of the United States of America. The Company hereby
waives any and all rights to demand a trial by jury in any action, suit or
proceeding arising out of or relating to this Agreement or the transactions
contemplated by this Agreement, brought against IFC in any forum in which IFC is
not entitled to immunity from a trial by jury. 

(k)      To
the extent that the Company may, in any action, suit or proceeding brought in
any of the courts referred to in Section 5.04(b) or in any other court or
elsewhere arising out of or in connection with this Agreement, be entitled to
the benefit of any provision of law requiring any Investor in such action, suit
or proceeding to post security for the costs of the Company, or to post a bond
or to take similar action, the Company hereby irrevocably waives such benefit,
in each case to the fullest extent now or in the future permitted under
Applicable Law or, as the case may be, the jurisdiction in which such court is
located. 

(l)      Nothing
in this Agreement shall affect the right of any Investor to (i) commence legal
proceedings or otherwise sue the Company in South Africa, the U.S. federal
courts sitting in the State of Florida or the state courts of the State of
Florida or (ii) commence legal proceedings to enforce any judgment against the
Company in any appropriate jurisdiction, and in either case to serve process,
pleadings and other legal papers upon the Company in any manner authorized by
the laws of any such jurisdiction. 

Section 5.05.
Immunity. To the extent the Company may be entitled in any
jurisdiction to claim for itself or its assets immunity in respect of its
obligations under this Agreement or the Policy Agreement from any suit,
execution, attachment (whether provisional or final, in aid of execution, before
judgment or otherwise) or other legal process or to the extent that in any
jurisdiction that immunity (whether or not claimed) may be attributed to it or
its assets, the Company irrevocably agrees not to claim and irrevocably waives
such immunity to the fullest extent permitted now or in the future by the laws
of such jurisdiction. 

- 25 - 

Section 5.06.
Announcements.

(a)      The Company may not represent
any Investor’s views on any matter, or, except to the extent required by law or
regulation (including, but not limited to, SEC, Nasdaq and JSE Limited rules),
use any Investor’s name in any written material provided to third parties,
without such Investor’s prior written consent.

(b)      The
Company shall not: 

	 	(i) 	
      disclose any information either in writing or orally to
      any Person which is not a party to this Agreement; or

	 	 	 
	 	(ii) 	
      make or issue a public announcement, communication or
      circular,

about the Investors Subscription or the subject matter of, or
the transactions referred to in, this Agreement or the Policy Agreement,
including by way of press release, promotional and publicity materials, posting
of information on websites, granting of interviews or other communications with
the press, or otherwise, other than: (A) to such of its officers, employees and
advisers as reasonably require such information in connection with the Investors
Subscription or to comply with the terms of the Transaction Documents; (B) to
the extent required by law or regulation (including, but not limited to, SEC,
Nasdaq and JSE Limited rules); (C) to the extent required for it to enforce its
rights under this Agreement; or (D) with the prior written consent of each
Investor. Before any information is disclosed or any public announcement,
communication or circulation made or issued pursuant to this Section
5.06(b), the Company must consult with each Investor in advance about the
timing, manner and content of the disclosure, announcement, communication or
circulation (as the case may be). 

Section 5.07. Successors
and Assigns. This Agreement binds and benefits the respective
successors and assignees of the parties. However, the Company may not assign,
transfer or delegate any of its rights or obligations under this Agreement
without the prior written consent of each Investor.

Section 5.08. Amendments,
Waivers and Consents. Any amendment or waiver of, or any consent
given under, any provision of this Agreement shall be in writing and, in the
case of an amendment, signed by all of the parties hereto. 

Section 5.09.
Counterparts. This Agreement may be executed in several
counterparts, each of which is an original, but all of which constitute one and
the same agreement.

Section 5.10.
Expenses. 

(a)      The
Company shall pay to each Investor or as such Investor may direct the reasonable
and documented costs and expenses (including reasonable and documented legal and
other professional consultants’ fees and expenses) of such Investor incurred
after the date of this Agreement in connection with: 

	 	(i) 	
      the closing of the transactions contemplated hereby, up
      to a maximum of $15,000;

	 	 	 
	 	(ii) 	
      the preparation and/or review, execution and, where
      appropriate, translation, registration, amendment, supplement or
      modification of, or waiver under, the Transaction Documents and any other
      documents related to any of them, in each case after the date of this
      Agreement, if such translation, registration, amendment, supplement,
      modification or waiver is requested by the Company or required or
      advisable under Applicable Law; and

- 26 - 

	 	(iii) 	
      the costs and expenses incurred by such Investor in
      relation to efforts to enforce or protect its rights under this Agreement,
      or the exercise of its rights or powers consequent upon or arising out of
      any breach of this Agreement, if the Investors are successful in whole or
      in part.

(b)     
The provisions of Section 5.10(a) shall survive the completion of the
Investors Subscription. 

Section 5.11. Entire
Agreement. The Transaction Documents supersede all prior discussions,
memoranda of understanding, agreements and arrangements (whether written or
oral, including all correspondence), if any, between the parties with respect to
the subject matter of this Agreement, and this Agreement (together with any
amendments or modifications and the other Transaction Documents) contains the
sole and entire agreement between the parties with respect to the subject matter
of this Agreement. 

Section 5.12. Invalid
Provisions. If any provision of this Agreement is held to be illegal,
invalid or unenforceable under any law from time to time: (a) such provision
will be fully severable from this Agreement; (b) this Agreement will be
construed and enforced as if such illegal, invalid or unenforceable provision
had never comprised a part hereof; and (c) the remaining provisions of this
Agreement will remain in full force and effect and will not be affected by the
illegal, invalid or unenforceable provision or by its severance herefrom so long
as this Agreement as so modified continues to express, without material change,
the original intentions of the parties as to the subject matter hereof and the
prohibited nature, invalidity or unenforceability of the provision(s) in
question does not substantially impair the respective expectations or reciprocal
obligations of the parties or the practical realization of the benefits that
would otherwise be conferred upon the parties. The parties will endeavor in good
faith negotiations to replace the prohibited, invalid or unenforceable
provision(s) with a valid provision(s), the effect of which comes as close as
possible to that of the prohibited, invalid or unenforceable provision(s). 

(Signature Pages Follow) 

IN WITNESS WHEREOF, the parties
hereto, acting through their duly authorized representatives, have caused this
Agreement to be signed in their respective names, as of the date first written
above. 

	NET 1 UEPS TECHNOLOGIES, INC. 
	  	  
	  	  
	By: 	/s/
      Serge C.P. Belamant
	  	Name: Serge C.P. Belamant 
	  	Title: Chief Executive Officer 
	  	  
	  	  
	  	  
	INTERNATIONAL FINANCE CORPORATION 
	  	  
	  	  
	By: 	/s/
    Atul Mehta  
	  	Name: Atul Mehta  
	  	Title: Global Head
	  	  
	IFC AFRICAN, LATIN AMERICAN AND CARIBBEAN FUND,
      LP 
	  	  
	By: IFC African, Latin American and Caribbean
      Fund (GP) LLC, 
	  	its general partner 
	  	  
	  	  
	By: 	/s/ Eileen M. Fargis    
	  	Name: Eileen M. Fargis
	  	Title: Authorized Signatory
	  	  
	  	  
	IFC FINANCIAL INSTITUTIONS GROWTH FUND, LP 
	  	  
	By: IFC FIG Fund (GP), LLP, its general partner
    
	  	  
	  	  
	By: 	/s/ Timothy M. Krause    
	  	Name: Timothy M. Krause
	  	Title: Authorized Signatory
	  	  
	AFRICA CAPITALIZATION FUND, LTD. 
	  	  
	  	  
	By: 	/s/ Sheref Zurga    
	  	Name: Sheref Zurga
	  	Title: Director

Signature Page - Subscription Agreement 

ANNEX A 

MINIMUM INSURANCE REQUIREMENTS 

The insurances required to be arranged by the Company are those
customarily expected of a similarly situated prudent public company, including
but not limited to the following: 

	 	1. 	
      Crime insurance with cover to include, without
      limitation, the following:

	 	(a) 	
      Infidelity of employees;

	 	(b) 	
      Forgery or alteration; and

	 	(c) 	
      Electronic and computer
crime;

	 	2. 	
      Cyber Insurance with cover including cyber liability and
      business interruption;

	 	 	 
	 	3. 	
      Professional Liability / Errors and Omissions;

	 	 	 
	 	4. 	
      Business Continuity plan;

	 	 	 
	 	5. 	
      Directors and Officers Liability with worldwide coverage
      as required by the Investors; and

	 	 	 
	 	6. 	
      All insurances required by Applicable
  Law.

ANNEX B 

ANTI-CORRUPTION GUIDELINES FOR IFC TRANSACTIONS 

The purpose of these Guidelines is to clarify the meaning of
the terms “Corrupt Practice”, “Fraudulent Practice”, “Coercive Practice”,
“Collusive Practice” and “Obstructive Practice” in the context of the Investors’
operations. 

	1. 	
      CORRUPT PRACTICES

A “Corrupt Practice” is the offering, giving, receiving or
soliciting, directly or indirectly, of anything of value to influence improperly
the actions of another party. 

INTERPRETATION 

	 	A. 	
      Corrupt Practices are understood as kickbacks and
      bribery. The conduct in question must involve the use of improper means
      (such as bribery) to violate or derogate a duty owed by the recipient in
      order for the payor to obtain an undue advantage or to avoid an
      obligation. Antitrust, securities and other violations of law that are not
      of this nature are excluded from the definition of Corrupt
    Practices.

	 	 	 
	 	B. 	
      It is acknowledged that foreign investment agreements,
      concessions and other types of contracts commonly require investors to
      make contributions for bona fide social development purposes or to provide
      funding for infrastructure unrelated to the project. Similarly, investors
      are often required or expected to make contributions to bona fide local
      charities. These practices are not viewed as Corrupt Practices for
      purposes of these definitions, so long as they are permitted under local
      law and fully disclosed in the payor’s books and records. Similarly, an
      investor will not be held liable for corrupt or fraudulent practices
      committed by entities that administer bona fide social development funds
      or charitable contributions.

	 	 	 
	 	C. 	
      In the context of conduct between private parties, the
      offering, giving, receiving or soliciting of corporate hospitality and
      gifts that are customary by internationally- accepted industry standards
      shall not constitute Corrupt Practices unless the action violates
      Applicable Law.

	 	 	 
	 	D. 	
      Payment by private sector persons of the reasonable
      travel and entertainment expenses of public officials that are consistent
      with existing practice under relevant law and international conventions
      will not be viewed as Corrupt Practices.

	 	 	 
	 	E. 	
      The World Bank Group1 does not condone
      facilitation payments. For the purposes of implementation, the
      interpretation of “Corrupt Practices” relating to facilitation payments
      will take into account relevant law and international conventions
      pertaining to corruption.

______________

	1 	
      The “World Bank” is the International Bank for
      Reconstruction and Development, an international organization established
      by Articles of Agreement among its member countries and the “World Bank
      Group” refers to the International Bank for Reconstruction and
      Development, the International Development Association, the International
      Finance Corporation, the Multilateral Investment Guarantee Agency, and the
      International Centre for Settlement of Investment
  Disputes.

	2. 	
      FRAUDULENT PRACTICES

A “Fraudulent Practice” is any action or omission, including a
misrepresentation that knowingly or recklessly misleads, or attempts to mislead,
a party to obtain a financial or other benefit or to avoid an obligation. 

INTERPRETATION 

	 	A. 	
      An action, omission, or misrepresentation will be
      regarded as made recklessly if it is made with reckless indifference as to
      whether it is true or false. Mere inaccuracy in such information,
      committed through simple negligence, is not enough to constitute a
      “Fraudulent Practice” for purposes of this Agreement.

	 	 	 
	 	B. 	
      Fraudulent Practices are intended to cover actions or
      omissions that are directed to or against a World Bank Group entity. It
      also covers Fraudulent Practices directed to or against a World Bank Group
      member country in connection with the award or implementation of a
      government contract or concession in a project financed by the World Bank
      Group. Frauds on other third parties are not condoned but are not
      specifically sanctioned in IFC, Multilateral Investment Guarantee Agency,
      or Partial Risk Guarantee operations. Similarly, other illegal behavior is
      not condoned, but will not be considered as a Fraudulent Practice for
      purposes of this Agreement.

	3. 	
      COERCIVE PRACTICES

A “Coercive Practice” is impairing or harming, or threatening
to impair or harm, directly or indirectly, any party or the property of the
party to influence improperly the actions of a party. 

INTERPRETATION 

	 	A. 	
      Coercive Practices are actions undertaken for the purpose
      of bid rigging or in connection with public procurement or government
      contracting or in furtherance of a Corrupt Practice or a Fraudulent
      Practice.

	 	 	 
	 	B. 	
      Coercive Practices are threatened or actual illegal
      actions such as personal injury or abduction, damage to property, or
      injury to legally recognizable interests, in order to obtain an undue
      advantage or to avoid an obligation. It is not intended to cover hard
      bargaining, the exercise of legal or contractual remedies or
      litigation.

	4. 	
      COLLUSIVE PRACTICES

A “Collusive Practice” is an arrangement between two or more
parties designed to achieve an improper purpose, including to influence
improperly the actions of another party. 

INTERPRETATION 

Collusive Practices are actions
undertaken for the purpose of bid rigging or in connection with public
procurement or government contracting or in furtherance of a Corrupt Practice or
a Fraudulent Practice. 

	5. 	
      OBSTRUCTIVE PRACTICES

An “Obstructive Practice” is (i)
deliberately destroying, falsifying, altering or concealing of evidence material
to the investigation or making of false statements to investigators, in order to
materially impede a World Bank Group investigation into allegations of a Corrupt
Practice, Fraudulent Practice, Coercive Practice or Collusive Practice, and/or
threatening, harassing or intimidating any party to prevent it from disclosing
its knowledge of matters relevant to the investigation or from pursuing the
investigation, or (ii) an act intended to materially impede the exercise of
IFC’s access to contractually required information in connection with a World
Bank Group investigation into allegations of a Corrupt Practice,
Fraudulent Practice, Coercive Practice or Collusive Practice. 

INTERPRETATION 

Any action legally or otherwise
properly taken by a party to maintain or preserve its regulatory, legal or
constitutional rights such as the attorney-client privilege, regardless of
whether such action had the effect of impeding an investigation, does not
constitute an Obstructive Practice.

GENERAL INTERPRETATION 

A person should not be liable for
actions taken by unrelated third parties unless the first party participated in
the prohibited act in question. 

SCHEDULE 1 

SUBSCRIPTION AMOUNTS 

	Name of Investor 
	Number of 
Shares 	Aggregate Purchase 
Price
    

	International Finance Corporation 	
      2,781,615 
	
      $29,999,995.94 

	IFC African, Latin American and Caribbean Fund, LP 	
      2,781,615 
	
      $29,999,995.94 

	IFC Financial Institutions Growth Fund, LP 	
      2,318,012 
	
      $24,999,991,22 

	Africa Capitalization Fund, Ltd. 	
      2,103,069 
	
      $22,681,809.47 

	     Total 	
      9,984,311 
	
$107,681,792.57 

SCHEDULE 2 

FORM OF CLOSING NOTICE 

[Letterhead of the Company] 

[Date] 

International Finance Corporation 
2121 Pennsylvania Avenue,
N.W. 
Washington, D.C. 20433
United States of America 
Attention: Atul
Mehta, Director, TMT, Venture Capital & Funds 

IFC African, Latin American and Caribbean Fund, LP 
2121
Pennsylvania Avenue, N.W. 
Washington, D.C. 20433 
United States of
America 
Attention: Colin Curvey and Eileen Fargis 

IFC Financial Institutions Growth Fund, LP 
2121
Pennsylvania Avenue, N.W. 
Washington, D.C. 20433 
United States of
America 
Attention: Tim Krause and Serge Devieux 

Africa Capitalization Fund, Ltd. 
2121 Pennsylvania Avenue,
N.W. 
Washington, D.C. 20433 
United States of America 
Attention:
George Ombima 

IFC Investment No. 37402 
Closing Notice

Ladies and Gentlemen: 

1.      Please
refer to the Subscription Agreement (the “Subscription Agreement, dated
April 11, 2016, by and among Net 1 UEPS Technologies, Inc. (the
“Company”), International Finance Corporation (“IFC”), IFC
African, Latin American and Caribbean Fund, LP (“ALAC”), IFC Financial
Institutions Growth Fund, LP (“FIG”) and Africa Capitalization Fund, Ltd.
(“AFCAP” and, together with IFC, ALAC and FIG, the “Investors”).
Terms defined in the Subscription Agreement, including terms defined by
reference to any other Transaction Document (as defined in the Subscription
Agreement), have their defined meanings wherever used in this request. 

In accordance with the provisions of the Subscription
Agreement, the Company notifies you that all of the conditions of subscription
set forth in Section 4.01 (Conditions of the Investors
Subscription) of the Subscription Agreement (other than the condition of
delivery of documents to the Investors at the closing, but subject to the
delivery of such documents at the closing) have been satisfied and that the
Subscription Date for the Investors’ Subscription contemplated by this Closing
Notice shall be [specify date no earlier than fifteen Business Days after
delivery of this notice]. 

2.     
Therefore, the Company requests each Investor to pay on the Subscription Date
the amount set forth opposite the Investor’s name on Schedule 1 to the
Subscription Agreement in U.S. Dollars on the Subscription Date to [name and
address of bank], for credit to the Company’s account no.
[____________]. 

3.      For
the purpose of Section 4.01 (Conditions of the Investors
Subscription) of the Subscription Agreement, the Company certifies as
follows: 

		(a) 	
      the representations and warranties made in Company in
      Sections 3.01(a), (b), (f), (g),(p) and
      (bb) of Article III of the Subscription Agreement, and in
      the corresponding sections of the Company Disclosure Letter and in any
      schedule, exhibit or certificate, delivered by the Company pursuant to the
      Subscription Agreement are true and correct in all respects (other than as
      set out in the corresponding sections of the Company Disclosure Letter) on
      and as of the date of this request with the same effect as if such
      representations and warranties had been made on and as of such
  date;

	 	 	 	 
		(b) 	
      The representations and warranties made by the Company in
      Article III of the Subscription Agreement (other than those in
      Sections 3.01(a), (b), (f), (g), (p)
      and (bb)), and in the corresponding sections of the Company
      Disclosure Letter and in any schedule, exhibit or certificate delivered by
      the Company pursuant to the Subscription Agreement, (x) that are qualified
      by materiality are true and correct in all respects and (y) that are not
      so qualified by materiality are true and correct in all material respects,
      in each case (other than as set out in the corresponding sections of the
      Company Disclosure Letter) on and as of the date of this request with the
      same effect as if such representations and warranties had been made on and
      as of such date;

	 	 	 
	 	(c) 	
      all of the agreements and covenants of the Company to be
      performed prior to the Investors Subscription pursuant to each Transaction
      Document have been duly performed in all material respects, and no breach
      (or any event which, with notice, lapse of time, the making of a
      determination or any combination, would become a breach) under any
      Transaction Document has occurred and is continuing;

	 	 	 	 
	 	(d) 	
      the Company has obtained and provided to the Investors
      copies of, all Authorizations listed in Section 3.01(d) (Status of
      Authorizations) of the Company Disclosure Letter, and all such
      Authorizations are in full force and effect;

	 	 	 	 
	 	(e) 	
      since the date of the Subscription Agreement nothing has
      occurred which has had or could reasonably be expected to have a Material
      Adverse Effect; and

	 	 	 	 
	 	(f) 	
      it remains in compliance with the S&E Management
      System and the S&E Management System has not been amended, waived or
      otherwise restricted in scope or effect by the Company, except in
      accordance with the Action Plan.

4.      The
above certifications are effective as of the date of this Closing Notice and
shall continue to be effective as of the Subscription Date set out in paragraph
2 (as if made by reference to such date). If any such certification is no longer
valid as of or prior to that Subscription Date, the Company undertakes to
promptly notify the Investors by facsimile. 

	Yours faithfully, 
	 	  
	By 	
	 	Authorized Representative 
	 	 
	By  	
	 	Authorized Representative

	Copy to: 	International Finance Corporation 
	  	Attention: Director, Department of Financial
Operations 

SCHEDULE 3 

FORM OF APPOINTMENT OF AGENT FOR SERVICE OF PROCESS 

[Letterhead of Agent for Service of Process] 

[Date] 

International Finance Corporation 
2121 Pennsylvania Avenue,
N.W. 
Washington, D.C. 20433
United States of America 
Attention:
Director, TMT, Venture Capital & Funds 

IFC African, Latin American and Caribbean Fund, LP 
2121
Pennsylvania Avenue, N.W. 
Washington, D.C. 20433 
United States of
America 
Attention: Head, IFC African, Latin American and Caribbean Fund, LP

IFC Financial Institutions Growth Fund, LP 
2121
Pennsylvania Avenue, N.W. 
Washington, D.C. 20433 
United States of
America 
Attention: Head, IFC Financial Institutions Growth Fund, LP 

Africa Capitalization Fund, Ltd. 
2121 Pennsylvania Avenue,
N.W. 
Washington, D.C. 20433 
United States of America 
Attention:
Head, Africa Capitalization Fund, Ltd. 

IFC Investment No. 37402 
Appointment of Agent for
Service of Process 

Ladies and Gentlemen: 

Reference is made to: 

1.           Section
5.04(e) (Applicable Law and Jurisdiction) of the Subscription Agreement,
dated April 11, 2016, by and among Net 1 UEPS Technologies, Inc. (the
“Company”), International Finance Corporation (“IFC”), IFC
African, Latin American and Caribbean Fund, LP (“ALAC”), IFC Financial
Institutions Growth Fund, LP (“FIG”) and Africa Capitalization Fund, Ltd.
(“AFCAP” and, together with IFC, ALAC and FIG, the “Investors”);
and 

2.           Section
7.04(e) (Applicable Law and Jurisdiction) of the Policy Agreement, dated
April 11, 2016, by and among the Company and the Investors (the “Policy
Agreement”).

Unless otherwise defined herein, capitalized terms used herein
shall have the meaning specified in the Subscription Agreement. 

Pursuant to (a) Section 5.04(e) (Applicable Law and
Jurisdiction) of the Subscription Agreement and (b) Section 7.04(e)
(Applicable Law and Jurisdiction) of the Policy Agreement, the
Company has irrevocably designated and appointed the undersigned,
[___________], with offices currently located at [__________________] as its
authorized agent to receive for and on its behalf service of process in any
legal action or proceeding with respect to each of the Subscription Agreement
and the Policy Agreement in the courts of the United States of America for the
Southern District of New York or in the courts of the State of New York located
in the Borough of Manhattan. 

The undersigned hereby informs
you that it has irrevocably accepted that appointment as process agent as set
forth in (a) Section 5.04(e) (Applicable Law and Jurisdiction) of the
Subscription Agreement and (b) Section 7.04 (e) (Applicable Law and
Jurisdiction) of the Policy Agreement, in each case from _______ until
___________, which appointment shall automatically renew annually until each
Investor has informed the undersigned in writing that it no longer own any
Equity Securities of the Company and agrees with you that the undersigned: 

(i)      shall inform each
Investor promptly in writing of any change of its address in New York; 

(ii)      shall perform its
obligations as such process agent in accordance with the relevant provisions of
each of Section 5.04(e) (Applicable Law and Jurisdiction) of the
Subscription Agreement and Section 7.04(e) (Applicable Law and
Jurisdiction) of the Policy Agreement; and 

(iii)      shall forward promptly
to the Company any legal process received by the undersigned in its capacity as
process agent.

As process agent, the undersigned
and its successor or successors agree to discharge the above-mentioned
obligations and will not refuse fulfillment of such obligations as provided
under Section 5.04(e) (Applicable Law and Jurisdiction) of the
Subscription Agreement and Section 7.04(e) (Applicable Law and
Jurisdiction) of the Policy Agreement. 

	Very faithfully, 
	  	 
	[PROCESS AGENT] 
	  	 
	  	 
	  	 
	By: 	 
	Name: 	 
	Title: 	 

	cc: 	
      Net 1 UEPS Technologies, Inc.

SCHEDULE 4 

FORM OF CERTIFICATE OF INCUMBENCY AND AUTHORITY 

[Letterhead of the Company] 

[Date] 

International Finance Corporation 
2121 Pennsylvania Avenue,
N.W. 
Washington, D.C. 20433
United States of America 
Attention:
Director, TMT, Venture Capital & Funds 

IFC African, Latin American and Caribbean Fund, LP 
2121
Pennsylvania Avenue, N.W. 
Washington, D.C. 20433 
United States of
America 
Attention: Head, IFC African, Latin American and Caribbean Fund, LP

IFC Financial Institutions Growth Fund, LP 
2121
Pennsylvania Avenue, N.W. 
Washington, D.C. 20433 
United States of
America 
Attention: Head, IFC Financial Institutions Growth Fund, LP 

Africa Capitalization Fund, Ltd. 
2121 Pennsylvania Avenue,
N.W. 
Washington, D.C. 20433 
United States of America 
Attention:
Head, Africa Capitalization Fund, Ltd. 

IFC Investment No. 37402 
Certificate of Incumbency and
Authority 

Reference is made to (i) the
Subscription Agreement, dated April 11, 2016 (the “Subscription
Agreement”), by and among Net 1 UEPS Technologies, Inc. (the
“Company”), International Finance Corporation (“IFC”), IFC
African, Latin American and Caribbean Fund, LP (“ALAC”), IFC Financial
Institutions Growth Fund, LP (“FIG”) and Africa Capitalization Fund, Ltd.
(“AFCAP” and, together with IFC, ALAC and FIG, the “Investors”)
and (ii) the Policy Agreement, dated April 11, 2016, by and among the Company
and the Investors (the “Policy Agreement”). Unless otherwise defined
herein, capitalized terms used herein shall have the meaning set forth in the
Subscription Agreement.

I, the undersigned Secretary of
the Company, duly authorized to do so, hereby certify that the following are the
names, offices and true specimen signatures of the individuals each of whom are,
and will continue to be, authorized: 

(a)     
to sign on behalf of the Company the requests for the subscription for shares of
common stock of the Company provided for in Section 2.01 (Subscription)
of the Subscription Agreement; 

(b)     
to sign the certifications required under Section 4.01 (Conditions of the
Investors Subscription) of the Subscription Agreement; and 

(c)      to
take any other action required or permitted to be taken, done, signed or
executed under the Subscription Agreement, the Policy Agreement or any other
agreement to which the Investors and the Company may be parties. 

	∗Name 	 	Office 	 	Specimen Signature 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

You may assume that any such individual continues to be so
authorized until you receive written notice from an Authorized Representative of
the Company that they, or any of them, is no longer so authorized. 

	Yours faithfully, 
	  	 
	Net 1 UEPS Technologies, Inc. 
	  	 
	  	 
	  	 
	By 	 
	Name: 	Herman G. Kotzé  
	Title: 	Secretary  

The undersigned, being the duly
elected and qualified President and Chief Executive Officer of the Company,
hereby certifies that _______________is the duly elected and qualified Secretary
of the Company and that the foregoing signature appearing above his name is his
genuine signature. 

IN WITNESS WHEREOF, I have
hereunto set my hand on behalf of the Company as of this ___ day of _______,
2016. 

	Net 1 UEPS Technologies, Inc.

	 	 
	By 	     
	Name: 	Serge C.P. Belamant 
	Title: 	President and Chief Executive Officer  

____________________

  	* 	
      Designations may be changed by the Company at any time by issuing a new
  Certificate of Incumbency and Authority authorized by the board of directors
  of the Company where applicable.

SCHEDULE 5 

FORM OF LETTER TO COMPANY’S AUDITORS 

[Letterhead of the Company] 

[Date] 

[NAME OF AUDITORS] 
[ADDRESS] 

IFC Investment No. 37402 
Letter to Auditors 

Ladies and Gentlemen: 

We hereby authorize and instruct
you to give to International Finance Corporation, 2121 Pennsylvania Avenue,
N.W., Washington, D.C. 20433, United States of America (“IFC”), IFC
African, Latin American and Caribbean Fund, LP, 2121 Pennsylvania Avenue, N.W.,
Washington, D.C. 20433, United States of America (“ALAC”), IFC Financial
Institutions Growth Fund, LP, 2121 Pennsylvania Avenue, N.W., Washington, D.C.
20433, United States of America (“FIG”) and Africa Capitalization Fund,
Ltd., 2121 Pennsylvania Avenue, N.W., Washington, D.C. 20433, United States of
America (“AFCAP” and, together with IFC, ALAC and FIG, the
“Investors”), all such information as any Investor may reasonably request
with regard to the financial statements (both audited and unaudited), accounts
and operations of the undersigned company. We have agreed to supply that
information and those statements under the terms of a Policy Agreement, dated
April 11, 2016, by and among the undersigned company and the Investors named
therein (the “Policy Agreement”). For your information we enclose a copy
of the Policy Agreement. 

We understand that any such
information request will be evaluated with reference to the relevant auditing
standards, laws and your formal policy and may be declined on these grounds.
Should any request be declined, please provide the requesting Investor and the
Company with a written explanation containing the reasons for your decision. We
hereby agree to execute any customary indemnity and/or engagement letter you may
require in advance of your providing to the Investors any information they may
request.

For our records, please ensure
that you send to us a copy of every letter that you receive from the Investors
immediately upon receipt and a copy of each reply made by you immediately upon
the issue of that reply. 

	Yours faithfully, 
	  	 
	NET 1 UEPS TECHNOLOGIES, INC. 
	  	 
	By 	 
	                 	Name:  
	                 	Title: [Authorized
      Representative]  

Enclosure: Policy Agreement 

	cc: 	
      Director, TMT, Venture Capital & Funds
      
International Finance Corporation 
2121 Pennsylvania Avenue,
      N.W.

      Washington, D.C. 20433 

      United States of America      

- 42 - 

SCHEDULE 6 

ACTION PLAN 

The Company – Environmental and Social Action Plan (ESAP)

	PS/Action Item 	Due Date 
	PS1: At least one qualified person will be nominated to be
      an Environmental and Social (E&S) coordinator for the Company. 	Subscription Date 
	PS1: Provision and implementation of E&S policies and
      procedures satisfactory to each Investor, consistent with IFC Performance
      Standards and IFC Telecommunications Guidelines – to integrate pollution
      control, waste management, rehabilitation activities, road safety,
      emergency preparedness, life and fire safety, and monitoring/reporting,
      especially regarding the development, installation, operation, maintenance
      and repair of the Company’s stationary and mobile ATMs and associated
      vehicle fleet. 	90 days after the Subscription Date or May 15,
    2016 (whichever comes first) 
	PS2: Provision and implementation of policies and
      procedures satisfactory to each Investor, consistent with IFC Performance
      Standards – to ensure that workers are provided a safe and healthy work
      environment, including provision of appropriate training and equipment and
      reporting on key health and safety statistics. 	30 days after Subscription Date or May 15, 2016
    (whichever comes first) 
	PS3: Provision and implementation of policies and
      procedures satisfactory to each Investor, consistent with IFC Performance
      Standards – to provide for waste management consistent with Section 1.6 of
      the World Bank Group General EHS Guidelines, and to provide for screening
      of automotive service providers for any significant environmental, health
      and safety concerns, including potential use of harmful child labor. 	30 days after Subscription Date or May 15, 2016
(whichever comes first)

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