Document:

Filed by sedaredgar.com - Net 1 UEPS Technologies, Inc. - Exhibit 10.44

Exhibit 10.44 

 

 

 

CESSION AND PLEDGE IN SECURITY 

 

 

Between

 

 

NET1 UEPS TECHNOLOGIES, INC. 

 

 

and 

 

 

INVESTEC BANK (UK) LIMITED 

 

	TABLE OF
      CONTENTS 

  	1. 	PARTIES 	3 
	 	 	 
	2. 	DEFINITIONS AND INTERPRETATION 	3 
	 	 	 
	3. 	INTRODUCTION 	10 
	 	 	 
	4. 	CESSION AND PLEDGE 	10 
	 	 	 
	5. 	WARRANTIES, REPRESENTATIONS AND UNDERTAKINGS BY THE
        PARENT 	10 
	 	 	 
	6. 	DELIVERY OF DOCUMENTS 	13 
	 	 	 
	7. 	RIGHTS, POWERS AND PRIVILEGES ATTACHING TO THE PLEDGED
        SHARES AND THE RIGHTS AND INTERESTS 	15 
	 	 	 
	8. 	REALISATION 	16 
	 	 	 
	9. 	APPROPRIATION OF PROCEEDS 	19 
	 	 	 
	10. 	AUTHORITY 	20 
	 	 	 
	11. 	DURATION 	21 
	 	 	 
	12. 	ADDITIONAL SECURITY 	21 
	 	 	 
	13. 	CESSION 	21 
	 	 	 
	14. 	PARENT BOUND NOTWITHSTANDING CERTAIN
        CIRCUMSTANCES 	21 
	 	 	 
	15. 	SHARES AND RIGHTS AND INTERESTS TO BE KEPT FREE OF
        ENCUMBRANCES 	22 
	 	 	 
	16. 	EXEMPTION FROM LIABILITY 	23 
	 	 	 
	17. 	CERTIFICATE OF INDEBTEDNESS 	23 
	 	 	 
	18. 	RENUNCIATION OF BENEFITS 	23 
	 	 	 
	19. 	NOTICES AND DOMICILIA 	24 
	 	 	 
	20. 	GOVERNING LAW 	26 
	 	 	 
	21. 	JURISDICTION 	26 
	 	 	 
	22. 	SEVERABILITY 	26 

Page 2. 

	23. 	GENERAL 	27 
	 	 	 
	24. 	COSTS 	28 
	 	 	 
	25. 	COUNTERPARTS 	28 
	 	 	 
	SCHEDULE 1: FORM OF NOTICE
      AND ACKNOWLEDGEMENT TO NET1 SA	 

CESSION AND PLEDGE IN SECURITY 

	1. 	
      PARTIES

	1.1 	
      The Parties to this Agreement
are:

	1.1.1 	
      NET1 UEPS TECHNOLOGIES, INC.; and

	 	 
	1.1.2 	
      INVESTEC BANK (UK)
LIMITED.

	1.2 	
      The Parties agree as set out
below.

	2. 	
      DEFINITIONS AND
INTERPRETATION

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

	 	 
	2.2 	
      Unless inconsistent with the context the words and
      expressions set forth below shall bear the following meanings and cognate
      expressions shall bear corresponding meanings:

	2.2.1 	
      “Additional Net1 South Africa Shares” means, in
      addition to the Initial Net1 South Africa Shares, all shares in the issued
      share capital of Net1 South Africa, from time to time, which are issued to
      or held by the Parent from time to time and including but not limited to
      any such shares which may be issued or transferred to the Parent in the
      future, together with all dividends, rights to dividend and voting rights
      which accrue and attach to such shares;

Page 4. 

	2.2.2 	
      “Agreement” means this Cession and Pledge in
      Security and its Schedules;

	 	 
	2.2.3 	
      “Articles of Association” means the articles of
      association of Net1 South Africa;

	 	 
	2.2.4 	
      “Borrower” means the Smartswitch Netherlands C.V.
      (Registration No. 24439756), a limited partnership duly established
      according to the laws of the Netherlands;

	 	 
	2.2.5 	
      “Claims” means all current and future claims
      (including, but not limited to all or any shareholder loans) which the
      Parent has or will have against Net1 South Africa on any account
      whatsoever, together with the benefit of any security interest for the
      time being held by the Parent in respect of such claims;

	 	 
	2.2.6 	
      “Documents of Title” means the share certificates
      and other documents of title referred to in clause 6.1;

	 	 
	2.2.7 	
      “Encumbrance” means any mortgage, pledge, lien,
      assignment or cession conferring security, hypothecation, security
      interest, preferential right or trust arrangement or any other agreement
      or arrangement, the effect of which is the creation of security;

	 	 
	2.2.8 	
      “Facility Agreement” means the Facility Agreement
      dated 27 August 2008 between the Borrower, Net1 Netherlands and the Lender
      pursuant to which the Lender agrees to advance a loan of US$110 000 000
      (One Hundred and Ten Million United States Dollars) to the
  Borrower;

Page 5. 

	2.2.9 	
      “Guarantee” means Deed of Guarantee dated 27
      August 2008 between the Parent and the Lender pursuant to which the Parent
      guarantees to the Lender punctual performance by each Obligor of all
      moneys, obligations and liabilities owed or payable by the Obligors to the
      Lender under or in connection with the Facility Agreement or any Finance
      Document;

	 	 
	2.2.10 	
      “Indebtedness” shall be widely construed so as to
      include any obligation (whether incurred as principal or surety) for the
      payment or repayment of money, whether present or future, actual or
      contingent;

	 	 
	2.2.11 	
      “Initial Net1 South Africa Shares” means,
      collectively:

	
      2.2.11.1 
	
      170 647 911 (one hundred and seventy million six hundred
      and forty-seven thousand nine hundred and eleven) class “A” ordinary
      shares of R0,01 (one cent) each in the issued share capital of Net1 South
      Africa constituting 100% (one hundred percent) of the entire issued
      ordinary share capital of Net1 South Africa as at the Signature Date;
    

	  	  
	
      2.2.11.2 
	
      201 001 369 (two hundred and one million and one thousand
      and thirty-six) class “B” preference shares of R0,001 (one tenth of a
      cent) each in the issued share capital of Net1 South Africa constituting
      84.4% (eight-four comma four percent) of the entire issued class “B”
      preference shares in Net1 South Africa as at the Signature Date,
  

in each case, together with all
dividends, rights to dividend and voting rights which accrue and attach to such
shares; 

Page 6. 

	2.2.12 	
      “Lender” means Investec Bank (UK) Limited, a
      public company and registered bank duly incorporated according to the
      company and banking laws of the United Kingdom, and its successors in
      title, permitted assigns and transferees in accordance with the terms of
      the Facility Agreement;

	 	 
	2.2.13 	
      “Net1 Netherlands” means Net1 Applied Technologies
      Netherlands B.V. (Registration No. 34307123), a company duly incorporated
      according to the company laws of the Netherlands;

	 	 
	2.2.14 	
      “Net1 South Africa” means Net1 Applied
      Technologies South Africa Limited (Registration No. 2002/031446/06), a
      public company duly incorporated according to the company laws of South
      Africa;

	 	 
	2.2.15 	
      “Obligors” shall bear the meaning defined in the
      Facility Agreement;

	 	 
	2.2.16 	
      “Parent” means Net1 UEPS Technologies, Inc.
      (Registration No. P97000041098), a corporation incorporated under the laws
      of Florida, United States of America;

	 	 
	2.2.17 	
      “Parties” means the Parent and the Lender and
      “Party” means, as the context requires, either one of
  them;

	 	 
	2.2.18 	
      “Pledged Shares” means
  collectively:

	2.2.18.1 	
      the Additional Net1 South Africa Shares; and

	 	 
	2.2.18.2 	
      the Initial Net1 South Africa
Shares;

	2.2.19 	
      “Rights and Interests” means all of the Parent’s
      rights of any nature whatsoever to and interests of any nature whatsoever
      in the Pledged

Page 7. 

		
      Shares and the Claims, whether actual, prospective or
      contingent, direct or indirect, whether a claim to the payment of money or
      to the performance of any other obligation, and whether or not the said
      rights and interests were within the contemplation of the Parties at the
      Signature Date;

	 	 
	2.2.20 	
      “Secured Obligations” means all of the obligations
      or Indebtedness (actual or contingent), present or future, from whatsoever
      cause and howsoever arising which the Parent may now or at any time
      hereafter owe or have towards the Lender under or in connection with the
      Guarantee;

	 	 
	2.2.21 	
      “Security Cession” means the cession in
      securitatem debiti and pledge contemplated by this
Agreement;

	 	 
	2.2.22 	
      “Signature Date” means the date of the signature
      of the Party last signing this Agreement in time;

	 	 
	2.2.23 	
      “Utilisation Date” shall bear the meaning defined
      in the Facility Agreement.

	2.3 	
      Unless inconsistent with the context or save where the
      contrary is expressly indicated:

	2.3.1 	
      if any provision in a definition is a substantive
      provision conferring rights or imposing obligations on any Party,
      notwithstanding that it appears only in this interpretation clause, effect
      shall be given to it as if it were a substantive provision of this
      Agreement;

	 	 
	2.3.2 	
      when any number of days is prescribed in this Agreement,
      same shall be reckoned exclusively of the first and inclusively of the
      last day unless the

Page 8. 

		
      last day falls on a day which is not a Business Day, in
      which case the last day shall be the next succeeding Business
  Day;

	 	 
	2.3.3 	
      in the event that the day for payment of any amount due
      in terms of this Agreement should fall on a day which is not a Business
      Day, the relevant day for payment shall be the previous Business
    Day;

	 	 
	2.3.4 	
      in the event that the day for performance of any
      obligation to be performed in terms of this Agreement should fall on a day
      which is not a Business Day, the relevant day for performance shall be the
      subsequent Business Day;

	 	 
	2.3.5 	
      any reference in this Agreement to an enactment is to
      that enactment as at the Signature Date and as amended or re-enacted from
      time to time;

	 	 
	2.3.6 	
      any reference in this Agreement to this Agreement or any
      other agreement or document shall be construed as a reference to this
      Agreement or, as the case may be, such other agreement or document as the
      same may have been, or may from time to time be, amended, varied, novated
      or supplemented;

	 	 
	2.3.7 	
      no provision of this Agreement constitutes a stipulation
      for the benefit of any person who is not a Party to this Agreement;
    and

	 	 
	2.3.8 	
      references to day/s, month/s or year/s shall be construed
      as Gregorian calendar day/s, month/s or
year/s.

	2.4 	
      Unless inconsistent with the context, an expression which
      denotes:

	2.4.1 	
      any one gender includes the other
  genders;

Page 9. 

	2.4.2 	
      a natural person includes an artificial person and
      vice versa; and

	 	 
	2.4.3 	
      the singular includes the plural and vice
      versa.

	2.5 	
      Where any term is defined within the context of any
      particular clause in this Agreement, the term so defined, unless it is
      clear from the clause in question that the term so defined has limited
      application to the relevant clause, shall bear the same meaning as
      ascribed to it for all purposes in terms of this Agreement,
      notwithstanding that that term has not been defined in this interpretation
      clause.

	 	 
	2.6 	
      The rule of construction that, in the event of ambiguity,
      the contract shall be interpreted against the Party responsible for the
      drafting thereof, shall not apply in the interpretation of this
      Agreement.

	 	 
	2.7 	
      The expiration or termination of this Agreement shall not
      affect such of the provisions of this Agreement as expressly provide that
      they will operate after any such expiration or termination or which of
      necessity must continue to have effect after such expiration or
      termination, notwithstanding that the clauses themselves do not expressly
      provide for this.

	 	 
	2.8 	
      This Agreement shall be binding on and enforceable by the
      estates, heirs, executors, administrators, trustees, permitted assigns or
      liquidators of the Parties as fully and effectually as if they had signed
      this Agreement in the first instance and reference to any Party shall be
      deemed to include such Party’s estate, heirs, executors, administrators,
      trustees, successors-in-title, permitted assigns or liquidators, as the
      case may be.

	 	 
	2.9 	
      The use of any expression in this Agreement covering a
      process available under South African law such as winding-up (without
      limitation eiusdem generis) shall, if any of the Parties to this
      Agreement is subject to the law of any other

Page 10. 

		
      jurisdiction, be construed as including any equivalent or
      analogous proceedings under the law of such other jurisdiction.

	 	 
	2.10 	
      Where figures are referred to in numerals and in words,
      if there is any conflict between the two, the words shall
  prevail.

	3. 	
      INTRODUCTION

	 	 
		
      As security for the due performance of the Secured
      Obligations, the Parent has agreed to pledge all of the Pledged Shares and
      cede in securitatem debiti all of the Rights and Interests to the
      Lender on the terms and conditions set out in this Agreement.

	 	 
	4. 	
      CESSION AND PLEDGE

	 	 
		
      The Parent hereby pledges to the Lender all of the
      Pledged Shares and cedes in securitatem debiti to the Lender all of
      the Rights and Interests, as a continuing general covering collateral
      security for the due, proper and timeous payment and performance in full
      of all of the Secured Obligations, on the terms and conditions set out in
      this Agreement, which pledge and cession the Lender hereby
  accepts.

	 	 
	5. 	
      WARRANTIES, REPRESENTATIONS AND UNDERTAKINGS BY THE
      PARENT

5.1               
The Parent, on each day that this Agreement is in force: 

	5.1.1 	
      warrants and represents that it is and will remain the
      sole and beneficial owner of the Pledged Shares and the Rights and
      Interests to the exclusion of all others and, save as otherwise
      contemplated in Article 28.3 of the Articles of Association (prior to the
      deletion thereof as contemplated in clause 5.1.4 below), no person has an
      option or right of refusal over the Pledged Shares and/or the Rights and
      Interests;

Page 11. 

	5.1.2 	
      warrants and represents that the Initial Net1 South
      Africa Shares are fully paid for and
constitute:

	5.1.2.1 	
      100% (one hundred percent) of the entire issued class “A”
      ordinary share capital of Net1 South Africa; and

	 	 
	5.1.2.2 	
      84.4% (eighty-four comma four percent) of the entire
      issued class “B” preference share capital of Net1 South Africa, as at the
      Signature Date;

	5.1.3 	
      warrants and represents that the Pledged Shares have been
      issued by Net1 South Africa in accordance and compliance with all
      applicable laws and/or regulations;

	 	 
	5.1.4 	
      warrants and represents that the Pledged Shares pledged
      and the Rights and Interests ceded in securitatem debiti to the
      Lender under this Agreement have not been pledged and/or ceded (either
      outright or as security), discounted, factored, mortgaged under notarial
      bond or otherwise, or otherwise disposed of or hypothecated, nor are they
      subject to any other rights in favour of any person (including without
      limitation any rights of pre-emption), save for the rights set out in
      Article 28.3 of the Articles of Association which rights shall be deleted
      from the Articles of Association pursuant to an amendment to the Articles
      of Association by way of a special resolution adopted and registered with
      the Registrar of Companies within 40 (forty) days (or such longer period
      as may be acceptable to the Lender) after the Signature Date;

	 	 
	5.1.5 	
      warrants and represents that all obligations undertaken
      by it under this Agreement have been authorised by all necessary corporate
      and/or other action and the constitutional documents of the Parent do not
      place any

Page 12. 

		
      limitations or restrictions on the Parent to pledge any
      of the Pledged Shares and cede in securitatem debiti the Rights and
      Interests as provided for in this Agreement;

	 	 
	5.1.6 	
      warrants and represents that to the best of its knowledge
      and belief the issue of the Security Cession and the fulfilment of its
      obligations in accordance with the terms thereof do not contravene any
      law, regulation or any contractual obligation binding on it;

	 	 
	5.1.7 	
      waives any and all rights in respect of the Pledged
      Shares and/or the Rights and Interests which it may have in conflict with
      the rights of the Lender under this Agreement;

	 	 
	5.1.8 	
      acknowledges that it may not pledge, cede, assign or
      transfer or in any other manner encumber or deal with the Pledged Shares
      and/or the Rights and Interests without the prior written consent of the
      Lender (which consent shall not be unreasonably withheld or
    delayed);

	 	 
	5.1.9 	
      agrees that on the occurrence of any breach or default in
      respect of any Secured Obligation and a failure to remedy such breach or
      default in accordance with the terms of the Guarantee, it will, upon
      exercise by the Lender of its rights under clause 8 below, forthwith pay
      over to the Lender any interest or other benefits of any nature accrued
      and/or received in respect of the Pledged Shares and the Rights and
      Interests relating to the period after such a breach by depositing the
      same into a nominated account as the Lender may from time to time direct
      in writing; and

	 	 
	5.1.10 	
      undertakes and agrees to the extent possible to prevent
      any variation of the value of, or rights relating to, the Pledged Shares
      and/or the Rights and

Page 13. 

Interests without the prior written
consent of the Lender (which consent shall not be unreasonably withheld or
delayed). 

	5.2 	
      Should any of the Pledged Shares and/or the Rights and
      Interests be subject to any right in breach of the representation and
      warranty in clause 5.1.4, then, without prejudice to any other rights that
      the Lender may have, any reversionary or other interests the Parent may
      have in such Pledged Shares and/or the Rights and Interests are also ceded
      in securitatem debiti to the Lender, and if the holder of that
      cession or right is entitled to possession of any of the documents
      referred to in clause 6 below, and it exercises that right, then the
      Parent shall deliver photocopies of the documents to the Lender, and as
      soon as the holder of that cession or right ceases to be entitled to
      possession or gives up possession, the Parent shall deliver the relevant
      documents to the Lender.

	 	 
	5.3 	
      It is recorded that the Lender has entered into this
      Agreement, the Facility Agreement and the Guarantee on the strength of and
      relying on the warranties and representations in this clause 5, each of
      which shall be deemed to be a separate warranty and representation, given
      without prejudice to any other warranty or representation, and deemed to
      be a material representation inducing the Lender to enter into this
      Agreement, the Facility Agreement and the
Guarantee.

	6. 	
      DELIVERY OF DOCUMENTS

	6.1 	
      The Parent shall deliver to the Lender (or its nominee)
      to be held by or on behalf of the Lender:

	6.1.1 	
      in relation to the Initial Net1 South Africa
    Shares:

Page 14. 

	6.1.1.1 	
      the original share certificate(s) in respect of the
      Initial Net1 South Africa Shares;

	 	 
	6.1.1.2 	
      share transfer forms in respect of the Initial Net1 South
      Africa Shares duly signed by the Parent as transferor and blank as to
      transferee,

		
      on or before the Utilisation Date; and

	 	 
	6.1.2 	
      in relation to any Additional Net1 South Africa Shares
      acquired by the Parent during any calendar month ending after the
      Signature Date:

	6.1.2.1 	
      the original share certificate(s) in respect of such
      Additional Net1 South Africa Shares;

	 	 
	6.1.2.2 	
      share transfer forms in respect of such Additional Net1
      South Africa Shares duly signed by the Parent as transferor and blank as
      to transferee,

by no later than the 10th
(tenth) Business Day after the end of each such calendar month. 

	6.2 	
      The Lender or its nominee on behalf of the Lender shall
      be entitled to retain possession of the Documents of Title, and to deal
      with them in accordance with the provisions of this Agreement until all
      the Secured Obligations have been unconditionally and irrevocably finally
      discharged or released (“Discharge Date”), as the case may be,
      whereupon the Documents of Title shall, within 10 (ten) Business of the
      Discharge Date, be returned to the Parent.

Page 15. 

	6.3 	
      In addition to the documents referred to above, the
      Parent shall deliver to the Lender:

	6.3.1 	
      a written notice and acknowledgement substantially in the
      form of Schedule 1 hereto notifying Net1 South Africa of the Security
      Cession and signed by Net1 South Africa to acknowledge such cession and
      pledge on or before the Utilisation Date;

	 	 
	6.3.2 	
      any other documents relating to the Pledged Shares and/or
      the Rights and Interests for which it may at any time reasonably call,
      which documents shall be delivered to the Lender within a reasonable
      period, as agreed between the Lender and the Parent, and failing such
      agreement, within 10 (ten) Business Days.

	6.4 	
      The Parent shall generally do everything that may be
      required by the Lender for the purposes of and to give effect to this
      Agreement, failing which the Lender may, if possible, attend thereto and
      recover from the Parent any expenses incurred in doing
  so.

	7. 	
      RIGHTS, POWERS AND PRIVILEGES ATTACHING TO THE PLEDGED
      SHARES AND THE RIGHTS AND INTERESTS

	7.1 	
      This Agreement operates in respect of all rights, powers
      and privileges attaching to the Pledged Shares and the Rights and
      Interests, including but not limited to those set out in clause 7.2 below
      and such rights, powers and privileges shall accordingly vest in the
      Lender with the power to exercise them either in its own name or in the
      name of the Parent, upon the occurrence of any breach of the Secured
      Obligations which has not been remedied in accordance with the terms of
      the Guarantee. Alternatively, the Parent shall, if the Lender so
      directs,

Page 16. 

		
      exercise its rights, powers and privileges in its own
      name and in accordance with the Lender’s directions to the greatest extent
      permitted by applicable law.

	 	 
	7.2 	
      Such rights, powers and privileges attaching to the
      Pledged Shares and/or the Rights and Interests include (but are not
      limited to) the following:

	7.2.1 	
      the right to receive payment of that portion of the
      dividends and other benefits which become due in respect of the Pledged
      Shares and/or the Rights and Interests from time to time;

	 	 
	7.2.2 	
      the right to exercise any rights to appoint directors to
      the board of Net1 South Africa;

	 	 
	7.2.3 	
      the right to receive notices of every general meeting of
      shareholders of Net1 South Africa, which are to be forwarded to the Lender
      just as if it were a shareholder of Net1 South Africa; and

	 	 
	7.2.4 	
      the right to attend every general meeting of the
      shareholders of Net1 South Africa and to exercise the votes attaching to
      the Pledged Shares at such meetings.

	7.3 	
      For the avoidance of doubt, for so long as the Parent is
      not in breach of the Secured Obligations, the provisions of clause 7.1 and
      7.2 above will not apply.

	8. 	
      REALISATION

	8.1 	
      If the Parent commits any breach or default of the
      Secured Obligations and fails to remedy such breach or default in
      accordance with the terms of the Guarantee, the Parent hereby irrevocably
      and unconditionally authorises and empowers the Lender or its nominee,
      without any further authority or consent of any
nature

Page 17. 

whatsoever required from the Parent,
but subject to applicable law, and in the name of the Lender or in the name of
the Parent to: 

	8.1.1 	
      exercise all or any of the rights, including voting
      rights attached to the Pledged Shares, powers and privileges and enforce
      all or any obligations attaching to the Pledged Shares and/or the Rights
      and Interests in such manner and on such terms as the Lender in its sole
      discretion deem fit; and/or

	 	 
	8.1.2 	
      receive payment for, delivery of and/or performance in
      respect of, the Pledged Shares and/or the Rights and Interests in its own
      name; and/or

	 	 
	8.1.3 	
      at the Lender’s election:

	8.1.3.1 	
      to sell or otherwise realise the Pledged Shares and/or
      the Rights and Interests or any one of them either by public auction or by
      private treaty, in the latter case on reasonable notice to the Parent not
      exceeding 10 (ten) Business Days, as the Lender may deem fit;
  and/or

	 	 
	8.1.3.2 	
      to take over the Pledged Shares and/or the Rights and
      Interests at the fair market value thereof which, in the absence of
      agreement within 10 (ten) Business Days after delivery by the Lender to
      the Parent of a written notice stating that the Lender intends to exercise
      its rights pursuant to this clause 8.1.3.2, shall be determined by an
      independent accountant agreed to by the Parties or, failing agreement
      within 5 (five) Business Days, appointed, at the request of either Party,
      by the President for the time being of the Southern African Institute of
      Chartered Accountants (or the successor body thereto) (which independent
      accountant shall act as an expert and not

Page 18. 

as an arbitrator, shall be instructed
to make his determination within 10 (ten) Business Days of being requested to do
so and shall determine the liability for his charges which will be paid
accordingly, provided that if any determination is manifestly unjust and the
court exercises its general power, if any, to correct such determination, the
Parties shall be bound thereby) and, subject to the provisions of clause 9, set
off the purchase price payable by the Lender for the Pledged Shares and/or the
Rights and Interests against the Parent’s indebtedness to the Lender in respect
of the Secured Obligations on the basis that any excess on realisation or any
balance owing to the Parent, as the case may be, will be paid to the Parent and
any shortfall will remain as a debt due by the Parent to the Lender; and/or 

	8.1.4 	
      institute any legal proceedings which the Lender may deem
      necessary in connection with any sale or other realisation or transfer of
      any of the Pledged Shares and/or the Rights and Interests by the Lender or
      its nominee; and/or

	 	 
	8.1.5 	
      to convey valid title in the Pledged Shares and/or the
      Rights and Interests to any purchaser thereof (including the Lender)
      and/or to take all such further or other steps as the Lender may consider
      necessary to deal with the Pledged Shares and/or the Rights and
      Interests.

	8.2 	
      On the Lender taking any actions in terms of clause 8.1,
      or otherwise as required by the Lender, the Parent shall on demand by the
      Lender:

	8.2.1 	
      notify Net1 South Africa, in writing, that payment for,
      delivery of or performance in respect of the relevant Pledged Shares
      and/or the relevant

Page 19. 

		
      Rights and Interests must be made to the Lender, and that
      payment, delivery or performance to the Parent or to anyone else will not
      constitute valid payment, delivery or performance, and the Lender shall be
      entitled to do likewise. The Parent shall on demand by the Lender provide
      proof that such notification has been duly given;

	 	 
	8.2.2 	
      refuse to accept any payment, delivery or performance
      tendered in respect of any of the Pledged Shares and/or the Rights and
      Interests in order that such payment, delivery or performance be tendered
      to the Lender, which will apply any payment so received in accordance with
      the provisions of clause 9;

	 	 
	8.2.3 	
      at its own cost carry out any lawful directions the
      Lender may give in regard to the realisation of the Pledged Shares and/or
      the Rights and Interests and sign any document or do any other reasonable
      and lawful act necessary to vest the Pledged Shares and/or the Rights and
      Interests in the Lender, to enable the sale or disposition of the Pledged
      Shares and/or the Rights and Interests, which may otherwise be necessary
      or required to perfect the Security Cession created in this
    Agreement.

	8.3 	
      Notwithstanding anything to the contrary contained in
      this Agreement, the Lender shall not be obliged to take any particular
      steps to collect or otherwise enforce its rights in respect of the Pledged
      Shares and/or the Rights and Interests.

	9. 	
      APPROPRIATION OF PROCEEDS

	 	 
		
      The Lender shall apply the net proceeds of all amounts
      received pursuant to the sale or other realisation of the Pledged Shares
      and/or the Rights and Interests (after deducting all properly evidenced
      costs and expenses incurred by the Lender in relation to
  such

Page 20. 

		
      realisation) in reduction or discharge, as the case may
      be, of the Parent’s obligations under the Secured Obligations in its sole
      discretion as it deems fit. Any amount remaining thereafter shall, within
      10 (ten) Business Days after receipt of the excess sale or realisation
      proceeds, be paid to the Parent provided that all of the Secured
      Obligations have been completely, unconditionally and irrevocably
      fulfilled.

	 	 
	10. 	
      AUTHORITY

	 	 
		
      If at any time during this Agreement the Lender becomes
      entitled to exercise its rights under clause 8.1, the Parent hereby
      authorises and appoints the Lender irrevocably and in rem suam as
      the Parent’s attorney and agent in the Parent’s name, place and stead to
      sign and execute:

	10.1 	
      any proxy in favour of the Lender or its nominee to
      enable the Lender to exercise any voting rights attaching to the Shares or
      any of them; and

	 	 
	10.2 	
      such documents as may be
necessary:

	10.2.1 	
      in order to render the Pledged Shares and/or the Rights
      and Interests or any of them negotiable including, without limitation, the
      signature of transfer declarations;

	 	 
	10.2.2 	
      to enable the Lender to receive payment of the purchase
      price of the Pledged Shares and/or the Rights and Interests subject to the
      provisions of clause 9; and/or

	 	 
	10.2.3 	
      to enable the Lender to exercise any of its rights
      granted to it herein.

Page 21. 

	11. 	
      DURATION

	 	 
		
      This Agreement is a continuing covering security and will
      ipso facto terminate only upon the unconditional and irrevocable
      fulfilment of all the Secured Obligations. In particular, this Agreement
      shall not terminate by reason solely of the fact that there may at any
      time be reduced obligations or debts owing by the Borrower under the
      Facility Agreement.

	 	 
	12. 	
      ADDITIONAL SECURITY

	 	 
		
      This Agreement is in addition to and not in substitution
      for any other security held or hereafter to be held by the Lender from any
      party in connection with the Secured Obligations, or otherwise and the
      Lender shall, without prejudice to its rights hereunder, be entitled to
      release any such additional security held by it.

	 	 
	13. 	
      CESSION

	 	 
		
      The Lender shall be entitled to cede, assign or delegate
      all, or any part of, its rights and/or obligations, as the case may be,
      under this Agreement or under any security granted by the Parent to the
      Lender in terms of this Agreement to any other party who becomes a lender
      under the Facility Agreement without the prior consent of the Parent;
      provided that the Parent shall be given written notice of any such
      cession, assignment or delegation. To the extent that any such cession,
      assignment or delegation results in a splitting of claims against the
      Parent, the Parent consents to such splitting of claims.

	 	 
	14. 	
      PARENT BOUND NOTWITHSTANDING CERTAIN
      CIRCUMSTANCES

	14.1 	
      The Parent agrees that on signature hereof it will be
      bound in terms of this Agreement to the full extent thereof, despite the
      fact that:

Page 22. 

	14.1.1 	
      any intended additional security from the Parent for the
      Secured Obligations may not be obtained or protected or may be released or
      may cease to be held for any other reason;

	 	 
	14.1.2 	
      the Lender and the Parent may agree a variation or
      novation of any of the Secured Obligations;

	 	 
	14.1.3 	
      the Lender may grant any indulgence to the Parent or any
      surety or may not exercise any one or more of its rights hereunder or
      under the Secured Obligations, either timeously or at all;

	 	 
	14.1.4 	
      any insolvency, administration, judicial management,
      reorganisation, arrangement, readjustment of debt, dissolution,
      liquidation or similar proceedings by or against the Lender, the Parent,
      or any other person; and

	 	 
	14.1.5 	
      any other fact or circumstance may arise (including any
      act or omission by the Lender) on which the Parent or any surety might
      otherwise be able to rely on a defence based on prejudice, waiver or
      estoppel.

	14.2 	
      If the Parent suffers any loss arising from any of the
      facts, circumstances, acts or omissions referred to above, the Parent will
      have no claim against the Lender in respect
thereof.

	15. 	
      SHARES AND RIGHTS AND INTERESTS TO BE KEPT FREE OF
      ENCUMBRANCES

	 	 
		
      The Parent shall at all times keep the Pledged Shares and
      the Rights and Interests free of Encumbrances, (save as for such
      Encumbrances created or required to be created in terms of the Facility
      Agreement) and shall not prejudice, compromise, grant
any

Page 23. 

		
      indulgences or agree to vary the terms of any document
      creating the Pledged Shares and the Rights and Interests without the prior
      written consent of the Lender.

	 	 
	16. 	
      EXEMPTION FROM LIABILITY

	 	 
		
      The Lender and its officers, trustees, agents,
      beneficiaries, employees and advisors shall not be liable for any loss or
      damage, whether direct, indirect, consequential or otherwise, suffered by
      the Parent arising from any cause in connection with this Agreement,
      whether the loss or damage results from breach of contract (whether total,
      fundamental or otherwise), delict, negligence or any other cause and
      whether this Agreement has been terminated or not, other than as a result
      of the Lender’s gross negligence or wilful misconduct.

	 	 
	17. 	
      CERTIFICATE OF INDEBTEDNESS

	 	 
		
      A certificate signed by any manager or director of the
      Lender whose appointment need not be proved, reflecting the amount owing
      by the Parent to the Lender under the Guarantee and the due date for
      payment of such amounts will, in the absence of manifest error, be
      prima facie evidence of the contents thereof.

	 	 
	18. 	
      RENUNCIATION OF BENEFITS

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

Page 24. 

	19. 	
      NOTICES AND
  DOMICILIA

	19.1 	
      Notices

	19.1.1 	
      Each Party chooses the address set out opposite its name
      below as its address to which any written notice in connection with this
      Agreement may be addressed.

	19.1.1.1 	Parent: 

	 	Physical Address: 	4th Floor, President Place 
	 	  	Corner Jan Smuts Avenue and Bolton 
	 	  	Road 
	 	  	Rosebank 
	 	  	JOHANNESBURG 
	 	  	2196 
	 	  	South Africa 
	 	  	  
	 	Telefax No: 	+27 11 880 7080 
	 	Attention: 	Mr Herman Kotze 

	19.1.1.2 	Lender: 

	 	Physical Address: 	2 Gresham Street 
	 	  	LONDON 
	 	  	EC2V 7QP 
	 	  	United Kingdom 
	 	  	  
	 	Telefax No: 	+44 207 597 4913 
	 	Attention: 	Kim Boatwright 

	19.1.2 	
      Any notice or communication required or permitted to be
      given in terms of this Agreement shall be valid and effective only if in
      writing but it shall be competent to give notice by telefax transmitted to
      its telefax number set out opposite its name
above.

Page 25. 

	19.1.3 	
      Either Party may by written notice to the other Party
      change its chosen address and/or telefax number for the purposes of clause
      19.1.1 to any other address(es) and/or telefax number, provided that the
      change shall become effective on the 14th (fourteenth) day
      after the receipt of the notice by the addressee.

	 	 
	19.1.4 	
      Any notice given in terms of this Agreement
  shall:

	19.1.4.1 	
      if delivered by hand be deemed to have been received by
      the addressee on the date of delivery;

	 	 
	19.1.4.2 	
      if transmitted by facsimile be deemed to have been
      received by the addressee on the 1st (first) Business Day after
      the date of transmission;

		
      unless the contrary is proved.

	 	 
	19.1.5 	
      Notwithstanding anything to the contrary herein
      contained, a written notice or communication actually received by a Party
      shall be an adequate written notice or communication to it,
      notwithstanding that it was not sent to or delivered at its chosen address
      and/or telefax number.

	19.2 	
      Domicilia

	19.2.1 	
      Each of the Parties chooses its physical address set out
      opposite its name in clause 19.1 as its domicilium citandi et
      executandi at which documents in legal proceedings in connection with
      this Agreement may be served.

	 	 
	19.2.2 	
      Either Party may by written notice to the other Party
      change its domicilium from time to time to another address, not
      being a post office box or a poste

Page 26. 

restante, in South Africa;
provided that any such change shall only be effective on the fourteenth day
after the receipt or deemed receipt of the notice by the other Party pursuant to
clause 19.1.4. 

	20. 	
      GOVERNING LAW

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

	 	 
	21. 	
      JURISDICTION

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

	 	 
	22. 	
      SEVERABILITY

	 	 
		
      Each provision in this Agreement is severable from all
      others, notwithstanding the manner in which they may be linked together or
      grouped grammatically, and if in terms of any judgment or order, any
      provision, phrase, sentence, paragraph or clause is found to be defective
      or unenforceable for any reason, the remaining provisions, phrases,
      sentences, paragraphs and clauses shall nevertheless continue to be of
      full force. In particular, and without limiting the generality of the
      aforegoing, the Parties acknowledge their intention to continue to be
      bound by this Agreement notwithstanding that any provision may be found to
      be unenforceable or void or voidable, in which event the provision
      concerned shall be severed from the other provisions, each of which shall
      continue to be of full force.

Page 27. 

	23. 	
      GENERAL

	23.1 	
      This document constitutes the sole record of the
      Agreement between the Parties in regard to the subject matter
    thereof.

	 	 
	23.2 	
      Neither Party shall be bound by any express or implied
      term, representation, warranty, promise or the like, not recorded
      herein.

	 	 
	23.3 	
      No addition to, variation or consensual cancellation of
      this Agreement and no extension of time, waiver or relaxation or
      suspension of any of the provisions or terms of this Agreement shall be of
      any force or effect unless in writing and signed by or on behalf of both
      the Parties.

	 	 
	23.4 	
      No latitude, extension of time or other indulgence which
      may be given or allowed by either Party to the other Party in respect of
      the performance of any obligation hereunder or enforcement of any right
      arising from this Agreement and no single or partial exercise of any right
      by either Party shall under any circumstances be construed to be an
      implied consent by such Party or operate as a waiver or a novation of, or
      otherwise affect any of that Party’s rights in terms of or arising from
      this Agreement or estop such Party from enforcing, at any time and without
      notice, strict and punctual compliance with each and every provision or
      term hereof.

	 	 
	23.5 	
      The Parties undertake at all times to do all such things,
      to perform all such acts and to take all such steps and to procure the
      doing of all such things, the performance of all such actions and the
      taking of all such steps as may be open to them and necessary for or
      incidental to the putting into effect or maintenance of the terms,
      conditions and import of this Agreement.

Page 28. 

	23.6 	
      The Parent shall not be entitled to cede or delegate any
      of its rights or obligations under this Agreement without the prior
      written consent of the Lender, which consent may not unreasonably be
      withheld or delayed.

	24. 	
      COSTS

	24.1 	
      The Parent shall bear the costs of and incidental to the
      negotiation, preparation and execution of this Agreement and the
      implementation of the transactions contemplated therein.

	 	 
	24.2 	
      All legal costs incurred by either Party in consequence
      of any default of the provisions of this Agreement by the other Party
      shall be payable on demand by the defaulting Party on the scale as between
      attorney and own client and shall include collection charges, the costs
      incurred by the non-defaulting Party in endeavouring to enforce such
      rights prior to the institution of legal proceedings and the costs
      incurred in connection with the satisfaction or enforcement of any
      judgement awarded in favour of the non-defaulting Party in relation to its
      rights in terms of or arising out of this
Agreement.

	25. 	
      COUNTERPARTS

	 	 
		
      This Agreement may be executed by each Party signing a
      separate copy thereof and each of the copies together shall constitute the
      Agreement of the Parties.

Page 29. 

SIGNED at Rosebank on this the 27th day of August 2008.

For and on behalf of 
NET1 UEPS
TECHNOLOGIES, INC. 

/s/ Herman
Kotze                                       

Name: HG Kotze 
Capacity: CFO 
Who warrants his authority hereto

/s/ Serge CP
Belamant                               
Name:
SCP Belamant 
Capacity: CEO 
Who warrants his authority hereto 

 

SIGNED at Gresham St, London on this the 27th day of
August 2008. 

For and on behalf of 
INVESTEC
BANK (UK) LIMITED 

/s/ Charles
Stott                                           
Name:
Charles Stott 
Capacity: Authorized Signatory 
Who warrants his authority
hereto 

/s/ Michael
Kurland                                     
Name:
Michael Kurland 
Capacity: Authorized Signatory 
Who warrants his
authority heretoFiled by sedaredgar.com - Net 1 UEPS Technologies, Inc. - Exhibit 10.45

     Exhibit 10.45 

 

Execution Copy 

 

 

27 August 2008 

SMARTSWITCH NETHERLANDS C.V. 

as the Borrower 

 

and 

NET1 UEPS TECHNOLOGIES, INC. 

as Subordinated Creditor 

and 

 

INVESTEC BANK (UK) LIMITED 

as the Lender 

 

______________________________________

DEED OF SUBORDINATION

______________________________________

 

 

 

Herbert Smith LLP 

TABLE OF CONTENTS 

	Clause 	Headings 	Page 
	 	 	 
	1. 	DEFINITIONS, CONSTRUCTION AND THIRD PARTY RIGHTS 	1 
	 	 	 
	2. 	RANKING OF DEBT 	2 
	 	 	 
	3. 	UNDERTAKINGS OF BORROWER 	3 
	 	 	 
	4. 	UNDERTAKINGS OF SUBORDINATED CREDITOR 	3 
	 	 	 
	5. 	TURNOVER OF RECEIPTS 	4 
	 	 	 
	6. 	SUBORDINATION ON INSOLVENCY 	4 
	 	 	 
	7. 	VOTING 	5 
	 	 	 
	8. 	TREATMENT OF DISTRIBUTIONS 	5 
	 	 	 
	9. 	ENFORCEMENT 	6 
	 	 	 
	10. 	ENFORCEMENT BY THE LENDER 	6 
	 	 	 
	11. 	CONSENTS 	7 
	 	 	 
	12. 	REPRESENTATIONS AND WARRANTIES 	7 
	 	 	 
	13. 	INFORMATION BY SUBORDINATED CREDITORS 	8 
	 	 	 
	14. 	SUBROGATION BY SUBORDINATED CREDITORS 	9 
	 	 	 
	15. 	PROTECTION OF SUBORDINATION 	9 
	 	 	 
	16. 	PRESERVATION OF SUBORDINATED DEBT 	10 
	 	 	 
	17. 	POWER OF ATTORNEY 	10 
	 	 	 
	18. 	EXPENSES, DEFAULT INTEREST ETC 	10 
	 	 	 
	19. 	CHANGES TO THE PARTIES 	12 
	 	 	 
	20. 	STATUS OF BORROWER 	13 
	 	 	 
	21. 	LIABILITY OF LENDER 	13 
	 	 	 
	22. 	NOTICES 	13 
	 	 	 
	23. 	PARTIAL INVALIDITY 	14 
	 	 	 
	24. 	REMEDIES AND WAIVERS CUMULATIVE 	14 
	 	 	 
	25. 	COUNTERPARTS 	14 

	26. 	GOVERNING LAW 	14 
	 	 	 
	27. 	JURISDICTION 	15 

THIS DEED OF SUBORDINATION is dated 27 August 2008 and
made 

BETWEEN: 

	(1) 	
      SMARTSWITCH NETHERLANDS C.V. (a limited
      partnership registered in the Netherlands under number 24439756 acting
      through its general partner SMARTSWITCH USA LLC, a limited
      liability company organised and existing under the laws of Delaware as
      borrower (the "Borrower")

	 	 
	(2) 	
      UEPS TECHNOLOGIES, INC. (a company incorporated in
      Florida with company registration number P97000041098 whose registered
      office is at 100 North Tampa, Suite 2200, Tampa, Florida (the
      "Subordinated Creditor"); and

	 	 
	(3) 	
      INVESTEC BANK UK LIMITED (the
    "Lender").

IT IS AGREED as follows: 

	1. 	
      DEFINITIONS, CONSTRUCTION AND THIRD PARTY
      RIGHTS

	 	 
	1.1 	
      Definitions

	 	 
		
      Terms defined in the Facility Agreement shall, unless
      otherwise defined in this Deed or unless a contrary intention appears,
      bear the same meaning when used in this Deed and the following terms shall
      have the following meanings:

	 	 
		
      "Ancillary Liabilities" in relation to any of the
      Senior Debt or the Subordinated Debt means:

	 	(A) 	
      any refinancing, novation, refunding, restructuring,
      deferral or extension of any of those liabilities;

	 	 	 
	 	(B) 	
      any further advance which may be made under any agreement
      supplemental to the relevant facilities or credit agreement plus all
      interest, indemnities, fees and costs in connection therewith;

	 	 	 
	 	(C) 	
      any claim for damages or restitution in the event of
      rescission of any such liabilities or otherwise in connection with any
      relevant facilities or credit agreement;

	 	 	 
	 	(D) 	
      any claim against the Borrower flowing from any recovery
      by the Borrower of a payment or discharge in respect of those liabilities
      on the grounds of preference or otherwise; and

	 	 	 
	 	(E) 	
      any amounts (including post-insolvency interest) which
      would be included in any of the above but for any discharge,
      non-provability, unenforceability or non- allowability of the same in any
      insolvency or other proceedings.

"Facility Agreement" means the
facility agreement between, among others, the Borrower and the Lender dated on
or around the date of this Deed.

"Debt" means: 

	 	(A) 	
      the Senior Debt; and

	 	 	 
	 	(B) 	
      the Subordinated Debt.

"Party" means a party to this
Deed. 

"Receiver" means a Receiver as
defined in any of the Senior Security Documents. 

1 

		
      "Senior Debt" means all present and future sums,
      liabilities and obligations (actual or contingent) payable, owing, due or
      incurred by the Borrower to the Lender under or in connection with a
      Finance Document together with all Ancillary Liabilities relating
      thereto.

	 	 
		
      "Senior Discharge Date" means the date, as
      determined by the Lender, on which all Senior Debt has been
      unconditionally and irrevocably paid and discharged in full to the
      satisfaction of the Lender whether or not by enforcement and on which no
      commitment is in force under the Finance Documents.

	 	 
		
      "Senior Security Documents" means a Security
      Document as defined in the Facility Agreement.

	 	 
		
      "Subordinated Debt" means all present and future
      sums, liabilities and obligations whatsoever (actual or contingent)
      payable, owing due or incurred by the Borrower to the Subordinated
      Creditor together with all Ancillary Liabilities relating
  thereto.

	 	 
		
      "Subordinated Document" means any document
      evidencing or recording the terms of any Subordinated Debt.

	 	 
	1.2 	
      Construction

	 	 
		
      The provisions of clause 1.2 of the Facility Agreement
      apply to this Deed as though they were set out in full in this
  Deed.

	 	 
	1.3 	
      Third Party Rights

	 	 
		
      Except as otherwise expressly provided in this Deed, no
      term of this Deed is enforceable under the Contracts (Rights of Third
      Parties) Act 1999 by a person who is not a party to this Deed.

	 	 
	1.4 	
      Effect as a Deed

	 	 
		
      This Deed is intended to take effect as a deed
      notwithstanding that the Lender may have executed it under hand
    only.

	 	 
	2. 	
      RANKING OF DEBT

	 	 
	2.1 	
      Ranking of Debt

	 	 
		
      Subject to the terms of this Deed, the Debt shall rank in
      the following order:

	 	First 	Senior Debt 
	 	 	 
	 	Second 	Subordinated Debt.

	2.2 	
      Application of ranking

	 	 	 
		
      The ranking in Clause 2.1 (Ranking of Debt) shall
      apply regardless of:

	 	 	 
		2.2.1 	
      the order of registration, delivery of, notice or
      execution of any document;

	 	 	 
		2.2.2 	
      the date upon which any Debt arises;

	 	 	 
		2.2.3 	
      whether the Lender is obliged to advance moneys included
      in any Debt; or

	 	 	 
		2.2.4 	
      any fluctuations in the outstanding amount of, or any
      intermediate discharge of, any Debt in whole or in
part.

2 

	3. 	
      UNDERTAKINGS OF BORROWER

	 	 	 
		
      So long as any Senior Debt is or may become outstanding,
      the Borrower undertakes to the Lender that it will not:

	 	 	 
		3.1.1 	
      discharge any of the Subordinated Debt;

	 	 	 
		3.1.2 	
      create or permit to subsist any security over any of its
      assets for, or any guarantee, indemnity or other assurance against
      financial loss in respect of, any of the Subordinated Debt;

	 	 	 
		3.1.3 	
      pay, repay, prepay, redeem, pay any interest, fees,
      dividends or commissions on or by reference to, purchase or otherwise
      acquire, any of the Subordinated Debt in cash or in kind nor allow any of
      its Subsidiaries to do so;

	 	 	 
		3.1.4 	
      purchase or acquire any of the Subordinated Debt or any
      interest therein nor allow any of its Subsidiaries to do so;

	 	 	 
		3.1.5 	
      amend, waive or release any term of the Subordinated
      Documents, except for an amendment, waiver or release which does not
      prejudice any Senior Debt, the Lender or impair the subordination
      contemplated by this Deed; or

	 	 	 
		3.1.6 	
      take or omit to take any action whereby the subordination
      contemplated by this Deed may be impaired.

	 	 	 
	4. 	
      UNDERTAKINGS OF SUBORDINATED CREDITOR

	 	 	 
		
      So long as any Senior Debt is or may become outstanding,
      the Subordinated Creditor undertakes to the Lender:

	 	 	 
		4.1.1 	
      not to demand or receive payment, prepayment or repayment
      of, or any distribution in respect of (or on account of) any of the
      Subordinated Debt in cash or in kind from the Borrower or any other source
      or apply any money or property in discharge of any Subordinated
    Debt;

	 	 	 
		4.1.2 	
      not to discharge any of the Subordinated Debt by
      set-off;

	 	 	 
		4.1.3 	
      not to permit to subsist or receive the benefit of any
      security interest, guarantee, indemnity or other assurance against
      financial loss for, or in respect of, any of the Subordinated
  Debt;

	 	 	 
		4.1.4 	
      not to take or omit to take any action whereby the
      subordination contemplated by this Deed may be impaired;

	 	 	 
		4.1.5 	
      not to amend, waive or release any term of the
      Subordinated Documents, except for an amendment which does not prejudice
      any Senior Debt, the Lender or impair the subordination contemplated by
      this Deed;

	 	 	 
		4.1.6 	
      not to convert any of the Subordinated Debt into shares
      of the Borrower; and

	 	 	 
		4.1.7 	
      to endorse a memorandum of this Deed on each document
      evidencing any Subordinated Debt.

3 

	5. 	
      TURNOVER OF RECEIPTS

	 	 	 
	5.1 	
      Non-permitted payments

	 	 	 
		
      If before the Senior Discharge Date:

	 	 	 
		5.1.1 	
      the Subordinated Creditor receives a payment or
      distribution in cash or in any other form in respect of, or on account of
      the Subordinated Debt from the Borrower or any other source;

	 	 	 
		5.1.2 	
      the Subordinated Creditor receives the proceeds of any
      enforcement of any security, or payment under any guarantee, for any
      Subordinated Debt; or

	 	 	 
		5.1.3 	
      the Borrower makes any payment or distribution in cash or
      in any other form on account of the purchase or other acquisition of any
      of the Subordinated Debt,

	 	 	 
			
      the Subordinated Creditor will forthwith pay any and all
      such amounts to the Lender for application against the Senior Debt and
      until it does so shall hold all such amounts on trust for the
    Lender.

	 	 	 
	5.2 	
      Non-permitted set-off

	 	 	 
		
      If, for any reason, any of the Subordinated Debt is
      discharged in whole or in part by set-off, the Subordinated Creditor will
      forthwith pay an amount equal to the amount of the Subordinated Debt
      discharged by the set-off to the Lender for application against the Senior
      Debt.

	 	 	 
	6. 	
      SUBORDINATION ON INSOLVENCY

	 	 	 
	6.1 	
      Subordination events

	 	 	 
		
      If:

	 	 	 
		6.1.1 	
      any distribution, assignment, division or application,
      partial or complete, voluntary or involuntary, by operation of law or
      otherwise, of all or any part of the assets of the Borrower, by reason of
      the liquidation, dissolution or other winding-up of the Borrower or its
      businesses or any sale, receivership, administration or insolvency
      proceeding for the benefit of creditors in respect of the Borrower is made
      or occurs; or

	 	 	 
		6.1.2 	
      an Event of Default is continuing,

	 	 	 
			
      the provisions of Clause 6.2 (Subordination) shall
      apply.

	 	 	 
	6.2 	
      Subordination

	 	 	 
		
      In any of the circumstances mentioned in Clause 6.1
      (Subordination events):

	 	 	 
		6.2.1 	
      the Subordinated Debt shall be postponed and subordinated
      in right of payment to the Senior Debt;

	 	 	 
		6.2.2 	
      the Lender may, and is irrevocably authorised on behalf
      of the Subordinated Creditor to:

	 	 	 
			
      (A)        claim,
      enforce and prove for the Subordinated Debt;

4 

	 	(B) 	
      file claims and proofs, give receipts and take all such
      proceedings and do all such things as the Lender sees fit to recover the
      Subordinated Debt; and

	 	 	 
	 	(C) 	
      receive all distributions on the Subordinated Debt for
      application towards the Senior Debt;

	 	6.2.3 	
      if and to the extent that the Lender is not entitled to
      claim, enforce, prove, file claims or proofs, or take proceedings for the
      Subordinated Debt, the Subordinated Creditor shall do so in good time as
      requested by the Lender acting in accordance with the instructions of the
      Lender;

	 	 	 	 
	 	6.2.4 	
      the Subordinated Creditor shall:

	 	 	 	 
	 		(A) 	
      hold any payment or distribution in cash or in kind
      received or receivable by it in respect of the Subordinated Debt from the
      Borrower or its estate or from any other source on trust for the Lender;
      and

	 	 	 	 
	 		(B) 	
      upon demand promptly pay and transfer any such payment to
      the Lender for application against the Senior Debt; and

	 	 	 	 
	 	6.2.5 	
      the trustee in bankruptcy, liquidator, assignee or other
      person distributing the assets of the Borrower or their proceeds is
      directed to pay distributions on the Subordinated Debt direct to the
      Lender until the Senior Debt is irrevocably paid in
full.

	7. 	
      VOTING

	 	 	 	 
		
      If any of the events referred to in Clause 6.1
      (Subordination events) occurs:

	 	 	 	 
		7.1.1 	
      the Lender may (and is hereby irrevocably authorised to)
      exercise all powers of convening meetings, voting and representation in
      respect of the Subordinated Debt and the Subordinated Creditor shall
      provide the Lender with all necessary forms of proxy and of
      representation; and

	 	 	 	 
		7.1.2 	
      if and to the extent that the Lender is not entitled to
      exercise a power conferred by the above, the Subordinated
  Creditor:

	 	 	 	 
			(A) 	
      shall exercise the power as the Lender directs;
  and

	 	 	 	 
			(B) 	
      shall not exercise any power so as to impair this
      subordination.

	 	 	 	 
	8. 	
      TREATMENT OF DISTRIBUTIONS

	 	 	 	 
	8.1 	
      Realisation of non-cash distributions

	 	 	 	 
		
      If the Lender receives any distribution otherwise than in
      cash in respect of the Subordinated Debt from the Borrower or any other
      source, the Lender may realise the distribution as it sees fit and the
      Senior Debt shall not be deemed reduced by the distribution until and
      except to the extent that the realisation proceeds are applied towards the
      Senior Debt.

	 	 	 	 
	8.2 	
      Transfer of distributions

	 	 	 	 
		
      The Subordinated Creditor shall do all such things as the
      Lender may require as being necessary or desirable to transfer to the
      Lender all payments and distributions which must be turned over or held in
      trust for the Lender, including endorsements and execution of formal
      transfers, and shall pay all costs and stamp duties in connection
      therewith.

5 

	8.3 	
      Currencies

	 	 
		
      If the Lender receives any payment required to be paid by
      the Subordinated Creditor under this Deed or paid in respect of the
      Subordinated Debt in a currency other than the currency of the Senior
      Debt, the Lender may convert the currency received into the currency of
      the Senior Debt at a prevailing market rate of exchange and the Senior
      Debt shall not be deemed reduced by the payment until and except to the
      extent that the proceeds of conversion are applied towards the Senior
      Debt.

	 	 
	8.4 	
      Failure of trust

	 	 
		
      If for any reason, a trust in favour of, or a holding of
      property for, the Lender under this Deed is invalid or unenforceable, the
      Subordinated Creditor shall pay and deliver to the Lender an amount equal
      to the payment, receipt or recovery in cash or in kind (or its value, if
      in kind) which the Subordinated Creditor would otherwise have been bound
      to hold on trust for or as property of the Lender.

	 	 
	9. 	
      ENFORCEMENT

	 	 
		
      Until the Senior Discharge Date, the Subordinated
      Creditor shall not be entitled:

	 	 
	9.1 	
      to accelerate any of the Subordinated Debt or otherwise
      declare any of the Subordinated Debt prematurely payable;

	 	 
	9.2 	
      either alone or in conjunction with any other person, to
      commence or take any action against the Borrower for the enforcement of,
      or in connection with, any Subordinated Document (including for the
      payment of any amount thereunder or in respect of a breach of a term
      thereunder) or for the termination thereof;

	 	 
	9.3 	
      to initiate or support or take any steps with a view to
      any insolvency, liquidation, reorganisation, receivership, administration,
      winding-up or dissolution proceedings or any voluntary arrangement or
      assignment for the benefit of creditors or any similar proceedings
      involving the Borrower, whether by petition, convening a meeting, voting
      in support of a resolution or otherwise;

	 	 
	9.4 	
      without prejudice to Clause 4.1.3 (Undertakings of
      Subordinated Creditor), to enforce any Security which secures any
      Subordinated Debt by foreclosure or otherwise or to exercise any right of
      marshalling; or

	 	 
	9.5 	
      otherwise to exercise any remedy for the recovery of the
      Subordinated Debt.

	 	 
	10. 	
      ENFORCEMENT BY THE LENDER

	 	 
		
      The Lender may enforce, or refrain from enforcing, the
      security created by any of the Senior Security Documents in accordance
      with their terms:

	 	 
	10.1 	
      in such manner as it sees fit;

	 	 
	10.2 	
      solely having regard to its interests; and

	 	 
	10.3 	
      without any liability or duty to any of the Subordinated
      Creditor.

6 

	11. 	
      CONSENTS

	 	 	 
	11.1 	
      New transactions

	 	 	 
		
      The Subordinated Creditor shall not have any remedy
      against the Borrower or the Lender by reason of any transaction entered
      into between the Lender and the Borrower which violates, does not comply
      with or is a potential event of default or an event of default (however
      described) under any Subordinated Document. The Subordinated Creditor may
      not object to any such transaction by reason of any provision of any of
      the Subordinated Documents.

	 	 	 
	11.2 	
      Waivers

	 	 	 
		
      Any waiver or consent granted by the Lender in respect of
      any Finance Document shall also be deemed to have been given by the
      Subordinated Creditor if any transaction or circumstances would, in the
      absence of that waiver or consent, violate or not comply with any
      Subordinated Document or result in a potential event of default or an
      event of default (however described) under any Subordinated
    Document.

	 	 	 
	12. 	
      REPRESENTATIONS AND WARRANTIES

	 	 	 
		
      The Subordinated Creditor represents and warrants to the
      Lender that:

	 	 	 
	12.1 	
      it is a duly incorporated corporation and validly
      existing under the laws of its jurisdiction of formation;

	 	 	 
	12.2 	
      it has the power to enter into and perform, and has taken
      all necessary action to authorise the entry into, performance and delivery
      of, this Deed;

	 	 	 
	12.3 	
      this Deed constitutes its legal, binding, valid and
      enforceable obligations subject to any general principles of law limiting
      its obligations which are specificially referred to in any legal opinion
      delivered pursuant to Clause 4 (Conditions of Utilisation) of the
      Facility Agreement;

	 	 	 
	12.4 	
      the entry into and performance by it of, and the
      transactions contemplated by, this Deed do not and will not:

	 	 	 
		12.4.1 	
      conflict with any law or regulation or judicial or
      official order applicable to it; or

	 	 	 
		12.4.2 	
      conflict with its constitutional documents; or

	 	 	 
		12.4.3 	
      conflict with any agreement or document which is binding
      upon it or any of its assets and it has obtained all necessary consents
      and authorisations for the performance by it of this Deed;

	 	 	 
	12.5 	
      it is the sole legal and beneficial owner of the
      Subordinated Debt owed to it and of the benefits of the Subordinated
      Documents free from any security interest, declaration of trust, option
      and subordination in favour of any person other than the Lender;

	 	 	 
	12.6 	
      the Subordinated Debt is not subject to any set-off,
      counterclaim or other defence;

	 	 	 
	12.7 	
      its payment obligations under this Deed rank at least
      pari passu with all its other present and future unsecured payment
      obligations, except for obligations mandatorily preferred by
law;

	 	 	 
	12.8 	
      no stamp or registration duty or similar Tax or charge is
      payable in its jurisdiction of incorporation in respect of this Deed and
      it is not necessary that this Deed be filed, recorded or enrolled with any
      court or other authority in any jurisdiction;

7 

	12.9 	
      all information provided by it or on its behalf in
      connection with or pursuant to this Deed or any other Transaction Document
      was true and accurate in all material respects as at the date it was
      provided or as at the date (if any) it was stated and nothing was omitted
      from such information that results in such information being untrue or
      misleading in any material respect;

	 	 	 
	12.10 	
      no litigation, arbitration or administrative proceedings
      of or before any court, arbitral body or agency which, if adversely
      determined, might reasonably be expected to have a materially adverse
      effect on its ability to comply with its obligations under this Deed have
      (to the best of its knowledge and belief) been started or threatened
      against it;

	 	 	 
	12.11 	
      the execution by it of this Deed constitutes, and the
      exercise by it of its rights and performance of its obligations under this
      Deed will constitute, private and commercial acts performed for private
      and commercial purposes and it will not be entitled to claim immunity from
      suit, execution, attachment or other legal process in any proceedings
      taken in its jurisdiction of incorporation in relation to this
  Deed;

	 	 	 
	12.12 	
      it is not necessary under the laws of its jurisdiction of
      incorporation:

	 	 	 
		12.12.1 	
      in order to enable the Lender to enforce its rights under
      this Deed; or

	 	 	 
		12.12.2 	
      by reason of the execution of this Deed or the
      performance by it of its obligations under this Deed,

	 	 	 
		
      that the Lender should be licensed, qualified or
      otherwise entitled to carry on business in its jurisdiction of
      incorporation and the Lender is not and will not be deemed to be resident,
      domiciled or carrying on business in its jurisdiction of incorporation by
      reason only of execution, performance and/or enforcement of this Deed;
      and

	 	 	 
	12.13 	
      its:

	 	 	 
		12.13.1 	
      irrevocable submission under this Deed to the
      jurisdiction of the courts of England;

	 	 	 
		12.13.2 	
      agreement that this Deed is governed by English law;
      and

	 	 	 
		12.13.3 	
      agreement not to claim any immunity to which it or its
      assets may be entitled,

	 	 	 
		
      are legal, valid and binding under the laws of its
      jurisdiction of incorporation and any judgment obtained in England will be
      recognised and be enforceable by the courts of its jurisdiction of
      incorporation.

	 	 	 
	12.14 	
      The representations set out in this Clause 12 are made on
      the date of this Deed and are deemed to be repeated by the Subordinated
      Creditor on each date until the Senior Discharge Date with reference to
      the facts and circumstances then existing.

	 	 	 
	13. 	
      INFORMATION BY SUBORDINATED CREDITORS

	 	 	 
	13.1 	
      Defaults

	 	 	 
		
      The Subordinated Creditor will, promptly upon becoming
      aware of the same, notify the Lender of the occurrence of any event of
      default or potential event of default (howsoever described) or mandatory
      prepayment event or other event entitling the Subordinated Creditor to
      demand prepayment or repayment of any Subordinated Debt prior to its
      specified maturity under the Subordinated
Documents.

8 

	13.2 	
      Amounts of debt

	 	 	 
		
      The Subordinated Creditor will on the written request by
      the Lender notify the Lender in writing of details of the amount of the
      Subordinated Debt.

	 	 	 
	14. 	
      SUBROGATION BY SUBORDINATED CREDITORS

	 	 	 
		
      If the Senior Debt is wholly or partially paid out of any
      proceeds received of or on account of the Subordinated Debt, the
      Subordinated Creditor (as the case may be) will to that extent be
      subrogated to the Senior Debt so paid (and all securities and guarantees
      for that Senior Debt) but not before the Senior Discharge Date.

	 	 	 
	15. 	
      PROTECTION OF SUBORDINATION

	 	 	 
	15.1 	
      Continuing subordination

	 	 	 
		
      The subordination provisions in this Deed constitute
      continuing subordination arrangements and benefit the ultimate balance of
      the Senior Debt, regardless of any intermediate payment or discharge of
      the Senior Debt in whole or in part.

	 	 	 
	15.2 	
      Waiver of defences

	 	 	 
		
      The subordination arrangements in this Deed and the
      obligations of the Subordinated Creditor under this Deed will not be
      affected by any act, omission, matter or thing which but for this
      provision, might operate to reduce, release or prejudice the subordination
      or any of those obligations in whole or in part, including without
      limitation:

	 	 	 
		15.2.1 	
      any time, waiver or indulgence granted to or composition
      with the Borrower or any other person;

	 	 	 
		15.2.2 	
      the taking of any other security interest from the
      Borrower or any other person or the variation, compromise, exchange,
      renewal or release of, or refusal or neglect to perfect, take up or
      enforce, any rights against, or security over assets of, the Borrower or
      any other person under the Finance Documents or otherwise or any
      non-presentation or non-observance of any formality or other requirement
      in respect of any instruments or any failure to realise the full value of
      any security;

	 	 	 
		15.2.3 	
      the release of the Borrower or any other person under the
      terms of any composition or arrangement;

	 	 	 
		15.2.4 	
      any incapacity or lack of power, authority or legal
      personality of or dissolution or change in the members or status of the
      Borrower or any other person;

	 	 	 
		15.2.5 	
      any amendment (however fundamental) or replacement of a
      Finance Document or any other document or security;

	 	 	 
		15.2.6 	
      any unenforceability, illegality or invalidity of any
      obligation of any person under any Finance Document or any other document
      or security;

	 	 	 
		15.2.7 	
      any winding-up, insolvency or similar proceedings in
      relation to any person; or

	 	 	 
		15.2.8 	
      any unenforceability, illegality or invalidity of any
      obligation of any person or any security under any of the Finance
      Documents or under any other document or security.

9 

	15.3 	
      Immediate recourse

	 	 	 
		
      The Subordinated Creditor waives any right it may have of
      first requiring the Lender (or any trustee or agent on its behalf) to
      proceed against or enforce any other rights or security or claim payment
      from any person before claiming the benefit of this subordination, of the
      security conferred by the Senior Security Documents or of the obligations
      of the Subordinated Creditor under this Deed. The Lender (or any trustee
      or agent on its behalf) may refrain from applying or enforcing any money,
      rights or security.

	 	 	 
	15.4 	
      Borrower's acknowledgement

	 	 	 
		
      The Borrower recognises the undertakings and obligations
      to and on the parts of the Subordinated Creditor herein contained and
      irrevocably waives any rights which each may now or in the future have to
      challenge or have set aside any arrangement relating to:

	 	 	 
		15.4.1 	
      the placing in a suspense account of any moneys or
      distributions received from the Subordinated Creditor or on account of the
      liability of the Subordinated Creditor under this Deed; and

	 	 	 
		15.4.2 	
      any other matter or thing regarding the order of
      enforcement of the Senior Security Documents and the priority of the
      application of the proceeds of such enforcement,

	 	 	 
			
      and the Borrower confirms that it does not have any right
      to enforce or sue in respect of any agreement, arrangement or
      understanding herein contained or to claim any right of estoppel in
      relation hereto.

	 	 	 
	16. 	
      PRESERVATION OF SUBORDINATED DEBT

	 	 	 
		
      The Subordinated Debt shall, solely as between the
      Borrower and the Subordinated Creditor, remain owing or due and payable in
      accordance with the terms of the Subordinated Documents and interest and
      default interest will accrue on missed payments accordingly.

	 	 	 
	17. 	
      POWER OF ATTORNEY

	 	 	 
		
      By way of security for the obligations of the
      Subordinated Creditor under this Deed, the Subordinated Creditor
      irrevocably appoints the Lender as its attorney to do anything which the
      Subordinated Creditor is required to do by this Deed but has failed to do.
      The Lender may delegate this power. The Subordinated Creditor ratifies and
      confirms and agrees to ratify and confirm all acts and things which any
      attorney mentioned in this Clause 17 does or purports to do in exercise of
      the powers granted by this Clause 17.

	 	 	 
	18. 	
      EXPENSES, DEFAULT INTEREST ETC

	 	 	 
	18.1 	
      Enforcement costs

	 	 	 
		
      The Borrower and the Subordinated Creditor shall,
      forthwith on demand, pay to the Lender the amount of all costs and
      expenses incurred by it in connection with the preservation or enforcement
      against the Borrower or the Subordinated Creditor (as the case may be) of
      any of the rights of the Lender against it under this Deed.

	 	 	 
	18.2 	
      Legal expenses and taxes

	 	 	 
		
      The costs and expenses referred to in Clause 18.1 above
      include, without limitation, the fees and expenses of legal advisers and
      any value added tax or similar tax, and are payable in the currency in
      which they are incurred.

10 

	18.3 	
      Default interest

	 	 	 	 
		18.3.1 	
      If the Subordinated Creditor fails to pay any amount
      payable by it under this Deed to the Lender, it must, on demand by the
      Lender, pay interest on the overdue amount from the due date up to the
      date of actual payment (both before and after judgment).

	 	 	 	 
		18.3.2 	
      Interest on an overdue amount is payable at a rate equal
      to the aggregate of:

	 	 	 	 
			(A) 	
      two per cent.;

	 	 	 	 
			(B) 	
      the rate quoted by the Lender to leading banks in the
      London interbank market on the relevant rate fixing day for the offering
      of deposits in the currency of the overdue amount during the period of
      non-payment;

	 	 	 	 
			(C) 	
      the cost of compliance with the requirements of the Bank
      of England, the Financial Services Authority or the European Central Bank
      (or, in any case, any successor authority) in relation to the overdue
      amount, as certified by the Lender.

	 	 	 	 
		18.3.3 	
      For the purpose of determining the relevant rate under
      Clause 18.3.2 above, the Lender may:

	 	 	 	 
			(A) 	
      select successive periods of any duration up to three
      months; and

	 	 	 	 
			(B) 	
      determine the appropriate rate fixing day for that
      period.

	 	 	 	 
		18.3.4 	
      Interest (if unpaid) on an overdue amount will be
      compounded at the end of the period selected by the Lender under Clause
      18.3.3 above but will remain immediately due and payable.

	 	 	 	 
		18.3.5 	
      Any interest accruing under this Clause 18 accrues from
      day to day and is calculated on the basis of the actual number of days
      elapsed and a year of 360 days or otherwise, depending on what the Lender
      determines is market practice for the currency of the amount
due.

	 	 	 	 
	18.4 	
      Certificates and Determinations

	 	 	 	 
		
      Any certification or determination by the Lender of a
      rate or amount under this Deed is, in the absence of manifest error,
      conclusive evidence of the matters to which it relates.

	 	 	 	 
	18.5 	
      No Deduction

	 	 	 	 
		
      All payments to be made by the Subordinated Creditor
      under this Deed shall be made without any set-off, counterclaim or equity
      and (subject to the following sentence) free from, clear of and without
      deduction for any taxes, duties, levies, imposts or charges whatsoever,
      present or future. If the Subordinated Creditor is compelled by the law of
      any applicable jurisdiction (or by an order of any regulatory authority in
      such jurisdiction) to withhold or deduct any sums in respect of taxes,
      duties, levies, imposts or charges from any amount payable to the Lender
      under this Deed or, if any such withholding or deduction is made in
      respect of any recovery from the Subordinated Creditor under this Deed,
      the Subordinated Creditor shall pay such additional amount so as to ensure
      that the net amount received by the Lender shall equal the full amount due
      to it under the provisions of this Deed (had no such withholding or
      deduction been made).

11 

	18.6 	
      Currency of Payment

	 	 	 	 
		
      The obligation of the Subordinated Creditor under this
      Deed to make payments in any currency shall not be discharged or satisfied
      by any tender, or recovery pursuant to any judgment or otherwise,
      expressed in or converted into any other currency, except to the extent
      that tender or recovery results in the effective receipt by a Finance
      Party of the full amount of the currency expressed to be payable under
      this Deed.

	 	 	 	 
	18.7 	
      Currency Indemnity

	 	 	 	 
		18.7.1 	
      If any sum due from the Subordinated Creditor under this
      Deed (a "Sum"), or any order, judgment or award given or made in
      relation to a Sum, has to be converted from the currency (the "First
      Currency") in which that Sum is payable into another currency (the
      "Second Currency") for the purpose of:

	 	 	 	 
			(A) 	
      making or filing a claim or proof against the
      Subordinated Creditor;

	 	 	 	 
			(B) 	
      obtaining or enforcing an order, judgment or award in
      relation to any litigation or arbitration proceedings; or

	 	 	 	 
			(C) 	
      applying the Sum in satisfaction of any amount due under
      this Deed,

	 	 	 	 
				
      the Subordinated Creditor shall, as an independent
      obligation, within three Business Days of demand, indemnify the relevant
      Finance Party against any cost, loss or liability arising out of or as a
      result of the conversion including any discrepancy between (A) the rate of
      exchange used to convert that Sum from the First Currency into the Second
      Currency and (B) the rate or rates of exchange available to that Finance
      Party at the time of its receipt of that Sum.

	 	 	 	 
		18.7.2 	
      The Subordinated Creditor waives any right it may have in
      any jurisdiction to pay any amount under this Deed in a currency or
      currency unit other than that in which it is expressed to be
    payable.

	 	 	 	 
	19. 	
      CHANGES TO THE PARTIES

	 	 	 	 
	19.1 	
      Successors and assigns

	 	 	 	 
		
      This Deed is binding on the successors and assigns of the
      parties hereto.

	 	 	 	 
	19.2 	
      Borrower

	 	 	 	 
		
      The Borrower may not assign or transfer any of its rights
      (if any) or obligations under this Deed.

	 	 	 	 
	19.3 	
      Subordinated Creditor

	 	 	 	 
		
      The Subordinated Creditor shall not:

	 	 	 	 
		19.3.1 	
      assign or dispose of, or create or permit to subsist any
      security or trust over, any of the Subordinated Debt owing to it or its
      proceeds or any interest in that Subordinated Debt or its proceeds, or any
      security therefor, to or in favour of any person or attempt to do any of
      the foregoing; or

	 	 	 	 
		19.3.2 	
      subordinate any of the Subordinated Debt owing to it or
      its proceeds to any sums owing by the Borrower to any person other than
      the Lender; or

12 

	 	19.3.3 	
      transfer by novation or otherwise any of its rights or
      obligations under the Subordinated Documents or this Deed to any
      person.

	19.4 	
      The Lender

	 	 	 	 
		
      The Lender may assign or otherwise dispose of all or any
      of its rights under this Deed in accordance with the Finance Documents to
      which it is a party.

	 	 	 	 
	20. 	
      STATUS OF BORROWER

	 	 	 	 
	20.1 	
      Priorities

	 	 	 	 
		
      The Borrower joins in this Deed for the purpose of
      acknowledging the priorities, rights and obligations recorded in this Deed
      and undertakes with each of the other parties hereto to observe the
      provisions of this Deed at all times and not in any way to prejudice or
      affect the enforcement of such provisions or do or suffer anything which
      would be inconsistent with the terms of this Deed.

	 	 	 	 
	20.2 	
      No rights

	 	 	 	 
		
      The Borrower shall not have any rights hereunder and none
      of the undertakings herein contained on the part of the Lender or the
      Subordinated Creditor are given (or shall be deemed to have been given)
      to, or for the benefit of, the Borrower.

	 	 	 	 
	21. 	
      LIABILITY OF LENDER

	 	 	 	 
		
      The Lender shall have no liability to the Borrower or the
      Subordinated Creditor for any omission or any act taken by it in
      connection with its rights, powers, duties or obligations under this
      Deed.

	 	 	 	 
	22. 	
      NOTICES

	 	 	 	 
	22.1 	
      Communications in writing

	 	 	 	 
		
      Any communication to be made under or in connection with
      this Deed shall be made in writing and, unless otherwise stated, may be
      given in person, by post or fax.

	 	 	 	 
	22.2 	
      Addresses

	 	 	 	 
		
      The address and fax number (and the department or
      officer, if any, for whose attention the communication is to be made) of
      each Party for any communication or document to be made or delivered under
      or in connection with this Deed is that identified with its name below or
      any substitute address, fax number or department or officer as any Party
      may notify to the others by not less than five Business Days'
    notice.

	 	 	 	 
	22.3 	
      Delivery

	 	 	 	 
		22.3.1 	
      Any communication or document made or delivered by one
      person to another under or in connection with this Deed will only be
      effective:

	 	 	 	 
			(A) 	
      if by way of fax, when received in legible form;
  or

	 	 	 	 
			(B) 	
      if by way of letter, when it has been left at the
      relevant address or five Business Days after being deposited in the post
      postage prepaid in an envelope addressed to it at that
  address,

13 

	 		
      and, if a particular department or officer is specified
      as part of its address details provided under Clause 22.2
      (Addresses), if addressed to that department or
    officer.

	 	 	 
	 	22.3.2 	
      Any communication or document to be made or delivered to
      the Lender will be effective only when actually received by the Lender and
      then only if it is expressly marked for the attention of the department or
      officer identified with the Lender's signature below (or any substitute
      department or officer as the Lender shall specify for this
  purpose).

	22.4 	
      English language

	 	 	 	 
		22.4.1 	
      Any notice given under or in connection with this Deed
      must be in English.

	 	 	 	 
		22.4.2 	
      All other documents provided under or in connection with
      this Deed must be:

	 	 	 	 
			(A) 	
      in English; or

	 	 	 	 
			(B) 	
      if not in English, and if so required by the Lender,
      accompanied by a certified English translation and, in this case, the
      English translation will prevail unless the document is a constitutional,
      statutory or other official document.

	23. 	
      PARTIAL INVALIDITY

	 	 	 
		
      If, at any time, any provision of this Deed is or becomes
      illegal, invalid or unenforceable in any respect under any law or any
      jurisdiction, neither the legality, validity or enforceability of the
      remaining provisions nor the legality, validity or enforceability of such
      provision under the law of any other jurisdiction will in any way be
      affected or impaired.

	 	 	 
	24. 	
      REMEDIES AND WAIVERS CUMULATIVE

	 	 	 
		
      The rights of the Lender under this Deed:

	 	 	 
		24.1.1 	
      are cumulative and not exclusive of its rights under the
      general law;

	 	 	 
		24.1.2 	
      may be exercised as often as necessary; and

	 	 	 
		24.1.3 	
      may be waived only in writing and specifically.

	 	 	 
			
      Delay in exercising or non-exercise of any such right is
      not a waiver of that right.

	 	 	 
	25. 	
      COUNTERPARTS

	 	 	 
		
      This Deed may be executed in any number of counterparts,
      and this has the same effect as if the signatures on the counterparts were
      on a single copy of this Deed.

	 	 	 
	26. 	
      GOVERNING LAW

	 	 	 
		
      This Deed is governed by English
law.

14 

	27. 	
      JURISDICTION

	 	 	 	 
	27.1 	
      Jurisdiction of English courts

	 	 	 	 
		27.1.1 	
      The courts of England have exclusive jurisdiction to
      settle any dispute arising out of or in connection with this Deed
      (including a dispute regarding the existence, validity or termination of
      this Deed) (a "Dispute").

	 	 	 	 
		27.1.2 	
      Subject to Clause 27.1.3 below, the Parties agree that
      the courts of England are the most appropriate and convenient courts to
      settle Disputes and accordingly neither the Borrower, an Obligor nor a
      Subordinated Creditor will:

	 	 	 	 
			(A) 	
      argue to the contrary; or

	 	 	 	 
			(B) 	
      take any proceedings relating to a Dispute in any
      jurisdiction other than England.

	 	 	 	 
		27.1.3 	
      This Clause is for the benefit of the Lender only. As a
      result the Lender shall not be prevented from taking proceedings relating
      to a Dispute in any other courts with jurisdiction nor from contending
      that such courts are appropriate and convenient. To the extent allowed by
      law, the Lender may take:

	 	 	 	 
			(A) 	
      proceedings in any other court; and

	 	 	 	 
			(B) 	
      concurrent proceedings in any number of
    jurisdictions.

	 	 	 	 
	27.2 	
      Service of process

	 	 	 	 
		
      Without prejudice to any other mode of service allowed
      under any relevant law, the Subordinated Creditor:

	 	 	 	 
		27.2.1 	
      irrevocably appoints [o] as its agent for service of
      process in relation to any proceedings before the English courts in
      connection with this Deed; and

	 	 	 	 
		27.2.2 	
      agrees that failure by a process agent to notify it of
      the process will not invalidate the proceedings
  concerned.

IN WITNESS whereof this Deed has been duly executed and
delivered as a deed on the date stated at the beginning of this Deed. 

15 

SIGNATORIES 

THE BORROWER 

EXECUTED AS A DEED by 
SMARTSWITCH NETHERLANDS
C.V. 
Represented by its Management Committee 

/s/ Herman
Kotze                                   

By: Herman Kotze 

Its: Sole Member of the Management Committee 

in the presence of: Signature of witness 

/s/ E C de
Villers                                     

Name of witness
(in BLOCK CAPITALS) 

EC de Villers 

Notice details for the purposes of Clause 22 

	Address of company: 	President Place 
	  	4th Floor 
	  	Cnr Jan Smuts Avenue and Bolton Road
  
	  	Rosebank 
	  	Johannesburg 2196 
	 	South Africa 
	  	  
	Fax: 	27 11 880 7080 
	  	  
	Attention: 	Mr Herman Kotze 

SIGNATURE PAGE TO DEED OF SUBORDINATION 

16 

THE SUBORDINATED CREDITOR 
EXECUTED AS A DEED by

NET1 UEPS TECHNOLOGIES, INC. 

/s/ Herman
Kotze                                   
By:
Herman Kotze 
Its: Chief Financial Officer 

Signature of witness 

/s/ E C de
Villers                                     

Name of witness
(in BLOCK CAPITALS) 

EC de Villers 

Notice details for the purposes of Clause 22 

Address of company:

President Place 
4th Floor 
Cnr. Jan Smuts
Avenue and Bolton Road 
Rosebank 
Johannesburg 2196 
South Africa

	Fax: 	27 11 880 7080 
	 	 
	Attention: 	Mr. Herman Kotze 

SIGNATURE PAGE TO DEED OF SUBORDINATION 

17 

	THE LENDER 	  	 
	SIGNED by 	) 	 
	  	) 	 
	for and on behalf of 	) 	 
	INVESTEC BANK (UK) 	) 	 
	LIMITED 	  	 

/s/ Charles
Stott                                     
Charles
Stott 
Authorized Signatory 

/s/ Michael
Kurland                               

Michael Kurland 
Authorized Signatory

 

Notice details for the purposes of Clause 22 

Address of company:

2 Gresham Street 
LONDON 
EC2 V 7QP 

	Fax: 	+44 (0)20 597 4070 
	 	 
	Attention: 	Kim Boatwright 

18

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