Document:

Net 1 UEPS Technologies, Inc.: Exhibit 10.69 - Filed by newsfilecorp.com

Exhibit 10.69

	 
	SUBSCRIPTION AGREEMENT 
	 

dated 

23 JUNE 2017 

among 

NET 1 APPLIED TECHNOLOGIES SOUTH AFRICA PROPRIETARY LIMITED

and 

AJD HOLDINGS PROPRIETARY LIMITED 

and 

RICHMARK HOLDINGS PROPRIETARY LIMITED 

in relation to and including as a party, 

DNI - 4PL CONTRACTS PROPRIETARY LIMITED

 

Baker & McKenzie 
1 Commerce Square 
39 Rivonia
Road 
Sandhurst, Sandton 
Johannesburg 
South Africa

www.bakermckenzie.com 

Table of contents 

	1.
      	INTERPRETATION 	3
    
	 	 	 
	2.
      	IMPLEMENTATION 	6
    
	 	 	 
	3.
      	CONDITION
      PRECEDENT 	6
    
	 	 	 
	4.
      	SUBSCRIPTION AND SETTLEMENT BY NET 1 	7
    
	 	 	 
	5.
      	PAYMENT 	7
    
	 	 	 
	6.
      	ADJUSTMENT
      FOR LEAKAGE 	7
    
	 	 	 
	7.
      	INTERIM
      PERIOD 	8
    
	 	 	 
	8.
      	2017
      FINANCIAL STATEMENTS 	11
      
	 	 	 
	9.
      	CLOSING 	13
      
	 	 	 
	10.
      	FILING OF
      NEW MOI 	14
      
	 	 	 
	11.
      	STARTER
      PACK CO 	14
      
	 	 	 
	12.
      	WARRANTIES 	14
      
	 	 	 
	13.
      	LIMITATION OF LIABILITY 	15
      
	 	 	 
	14.
      	INDEMNITIES BY THE WARRANTORS 	18
      
	 	 	 
	15.
      	NET 1'S
      RIGHT TO TERMINATE 	19
      
	 	 	 
	16.
      	CONFIDENTIALITY 	19
      
	 	 	 
	17.
      	DOMICILIUM AND NOTICES 	19
      
	 	 	 
	18.
      	BREACH 	19
      
	 	 	 
	19.
      	ARBITRATION 	19
      
	 	 	 
	20.
      	GENERAL 	19
      
	 	 	 
	21.
      	COSTS
      	20
      
	 	 	 
	ANNEXURE A
      - WARRANTIES 	25
      
	 	 
	ANNEXURE B
      - DISCLOSURE SCHEDULE 	45
      
	 	 
	ANNEXURE C
      - AUDITED ACCOUNTS 	46
      
	 	 
	ANNEXURE D
      - SIGNATURE DATE ACCOUNTS 	47
      

2 

SUBSCRIPTION AGREEMENT 

This Agreement is dated 23 June 2017 

among 

NET 1 APPLIED TECHNOLOGIES SOUTH AFRICA PROPRIETARY
LIMITED; 

DNI - 4PL CONTRACTS PROPRIETARY LIMITED; 

AJD HOLDINGS PROPRIETARY LIMITED; and 

RICHMARK HOLDING PROPRIETARY LIMITED 

	1. 	
      INTERPRETATION

	 	 
	1.1 	
      This Agreement shall be interpreted in accordance with
      clause 1 of the Framework Agreement (as defined below).

	 	 
	1.2 	
      Any defined terms in this Agreement not defined in clause
      1.3 below shall bear the meaning assigned to them in clause 1.2 of the
      Framework Agreement.

	 	 
	1.3 	
      In this Agreement, the following terms shall bear the
      meanings assigned to them below and cognate expressions shall bear
      corresponding meanings:

	 	(a) 	
      Adverse Consequences - all adverse consequences of
      whatever description including, but not limited to, all actions,
      applications, suits, proceedings, damages, penalties, fines, costs,
      reasonable amounts paid in settlement, liabilities, obligations, tax,
      liens, losses, compensation (including compensation paid or payable to any
      employee), expenses and fees, including reasonable fees and expenses of
      attorneys, counsel, accountants, consultants and experts;

	 	 	 
	 	(b) 	
      Agreement – this subscription agreement together
      with its annexures;

	 	 	 
	 	(c) 	
      Audited Accounts - the consolidated audited annual
      financial statements of the Company as at and in respect of the 12 month
      period ended on 28 February 2016 and annexed hereto marked Annexure
      C;

	 	 	 
	 	(d) 	
      Auditors - the auditors of the Company;

	 	 	 
	 	(e) 	
      Business - the business carried on by the Group as
      at the Signature Date, including the business of operating as a
      distributor of mobile cellular products in the informal and formal markets
      of RSA;

	 	 	 
	 	(f) 	
      Capacity and Authority Warranties - those
      warranties as set out in clause 2 of Annexure A, which Warranties
      are given by the Warrantors separately and individually (and not jointly
      and not jointly and severally);

	 	 	 
	 	(g) 	
      Condition Precedent - the suspensive condition set
      out in clause 3.1;

	 	 	 
	 	(h) 	
      Designated Distribution – shall bear the meaning
      ascribed thereto in clause 7.3(a)(i);

	 	 	 
	 	(i) 	
      Designated Period – the period commencing on 1
      March 2017 and ending on 30 June 2017;

	 	 	 
	 	(j) 	
      Disclosure Schedule - the disclosure schedule
      attached hereto as Annexure B;

	 	 	 
	 	(k) 	
      Effective Date – shall bear the meaning ascribed
      thereto in the Framework Agreement;

3 

	 	(l) 	
      Extraordinary Items - material items possessing a
      high degree of abnormality which arise from events or transactions that
      fall outside the ordinary activities of the Company or any of its
      subsidiaries, being non-recurring and non-trading items, including (for
      the avoidance of doubt) income, expenditure items accounted for during the
      financial year under review in respect of any prior financial year and
      which shall further include any profit or loss made on the disposal or
      acquisition of any fixed assets, or operations or business or investments
      and any operations and/or business which have been discontinued or
      sold;

	 	 	 
	 	(m) 	
      Fairly Disclosed - means disclosed in such a
      manner and in such detail as would enable a prospective subscriber, acting
      reasonably and in good faith, to make an informed assessment of the matter
      concerned and to establish what the consequences thereof would
  be;

	 	 	 
	 	(n) 	
      Framework Agreement - the framework agreement
      entered into among Net 1, Gain, AJD Holdings, Richmark and the Company on
      the Signature Date;

	 	 	 
	 	(o) 	
      Financial Warranties - those warranties pertaining
      to the Warranted Accounts and the incurrence of liabilities, as set out in
      clause 6(a) of Annexure A;

	 	 	 
	 	(p) 	
      Gain - Peter Kennedy Gain, identity number
    xxx;

	 	 	 
	 	(q) 	
      Group – the Company and its subsidiaries, and
      "Group Company" shall mean any of them;

	 	 	 
	 	(r) 	
      IFRS - International Financial Reporting Standards
      as issued by the Board of the International Accounting Standards Committee
      from time to time;

	 	 	 
	 	(s) 	
      Interim Period - the period extending from 1 June
      2017 up to the Issue Date;

	 	 	 
	 	(t) 	
      Issue Date – the later to occur of the following
      dates –

	 	(i) 	
      the Effective Date; and

	 	 	 
	 	(ii) 	
      the 1st (first) Business Day after the date on
      which the memorandum of incorporation referred to in clause 4.1(a)(v) of
      the Framework Agreement has been filed at the Companies and Intellectual
      Property Commission in the manner and form prescribed in the Companies
      Act;

	 	(u) 	
      Leakage means -

	 	(i) 	
      any dividend, bonus or other distribution of capital or
      income declared, paid or made (whether in cash or in specie) or any
      repurchase, redemption, repayment or return of share or loan capital (or
      any other relevant securities) by the Group to or for the benefit of any
      Warrantor or Warrantor's Related Persons;

	 	 	 
	 	(ii) 	
      any payments made by the Group to (or assets transferred
      to or liabilities assumed, indemnified, or incurred by the Group for the
      benefit of) any Warrantor or Warrantor's Related Persons; and/or

	 	 	 
	 	(iii) 	
      the waiver by the Group of any economic benefit or amount
      owed to the Group by any Warrantor or Warrantor's Related
  Persons,

other than Permitted Leakage; 

4 

	 	(v) 	
      Net 1 - Net 1 Applied Technologies South Africa
      Proprietary Limited, a limited liability private company duly incorporated
      in accordance with the laws of RSA with registration number
      2002/031446/07;

	 	 	 
	 	(w) 	
      Net Working Capital Warranty - the warranty
      pertaining to the net working capital of the Company as set out in clause
      7 of Annexure A;

	 	 	 
	 	(x) 	
      Ordinary Course of Business - the usual and
      ordinary course of the Business as carried out in accordance with policies
      and practices applied in the 12 months immediately preceding the Signature
      Date;

	 	 	 
	 	(y) 	
      PAT - the attributable net income after tax of the
      Company in respect of the applicable period as set out in the 2017
      Financial Statements, calculated in accordance with IFRS, and otherwise
      consistent with past practice and methodology;

	 	 	 
	 	(z) 	
      PAT Determination Date – the date on which the
      amount of the PAT has been agreed to by Net 1 in terms of clause 8.6 or
      finally determined in terms of clause 8.9, as the case may be;

	 	 	 
	 	(aa) 	
      Prime Rate - the publicly quoted basic rate of
      interest (percent per annum, calculate daily, compounded monthly in arrear
      and calculated on a 365 day year) from time to time published by Investec
      Bank Limited as its prime overdraft lending rate, as certified by any
      manager of such bank, or his delegee, whose appointment and designation
      need not be provided, which shall in the absence of manifest or clerical
      error be prima facie proof thereof;

	 	 	 
	 	(bb) 	
      Permitted Leakage -
means:

	 	(i) 	
      salaries and other remuneration paid to employees of the
      Group in the ordinary course (excluding for the avoidance of doubt bonuses
      and other payments outside of the ordinary course); and/or

	 	 	 
	 	(ii) 	
      any cash dividend declared and paid by the board of
      directors of the Company as contemplated in 7.3;

	 	 	 
	 	(iii) 	
      any payments made by the Group to a Related Person (A) in
      the Ordinary Course of Business and provided that such payment has been
      Fairly Disclosed in the Disclosure Schedule; and/or (B) in respect of
      which there is a liability, accrual or provision made in the Warranted
      Accounts;

	 	(cc) 	
      Related Person – a "related" person as such terms
      is defined in section 2 of the Companies Act or an "inter-related" persons
      as such terms is defined in the Companies Act;

	 	 	 
	 	(dd) 	
      Signature Date – the date of signature of this
      Agreement by the last of the Parties;

	 	 	 
	 	(ee) 	
      Signature Date Accounts – the unaudited,
      consolidated and internally prepared management accounts of the Group for
      the period between 1 March 2016 and 31 May 2017, attached hereto as
      Annexure D;

	 	 	 
	 	(ff) 	
      Starter Pack Co - the Starterpack Company
      Proprietary Limited, a limited liability private company duly incorporated
      in accordance with the laws of RSA with registration number
      2007/010809/07;

	 	 	 
	 	(gg) 	
      Subscription Price - means ZAR 944,999,979 being
      the subscription price payable by Net 1 to the Company for the
      Subscription Shares, to be discharged as set out in clause
  4;

5 

	 	(hh) 	
      Subscription Shares - means, the 44,999,999
      ordinary A shares, to be issued by the Company to Net 1, and a description
      of such rights are set out in Annexure C;

	 	 	 
	 	(ii) 	
      Tax - means all income tax, capital gains tax,
      secondary tax on companies (or any similar tax replacing or substituting
      it), dividend tax, value-added tax, stamp duty, securities transfer tax,
      uncertificated securities tax, PAYE, levies, assessments, imposts,
      deductions, charges and withholdings whatsoever in terms of any tax
      legislation, and includes all penalties and interest payable as a
      consequence of any failure or delay in paying any taxes;

	 	 	 
	 	(jj) 	
      Tax Warranties - means those warranties pertaining
      to tax set out in clause 7 of Annexure A;

	 	 	 
	 	(kk) 	
      Title Warranties - those warranties pertaining to
      the validity of the issuance of the Subscription Shares under this
      Agreement as set out in clause [3] of Annexure A, which Warranties
      are given by the Warrantors separately and individually (and not jointly
      and not jointly and severally);

	 	 	 
	 	(ll) 	
      Warranted Accounts – the Audited Accounts and the
      Signature Date Accounts;

	 	 	 
	 	(mm) 	
      Warranties - the warranties given by the
      Warrantors in respect of the Group and contained in this Agreement,
      including those contained in Annexure A hereto;

	 	 	 
	 	(nn) 	
      Warrantors – Richmark and AJD Holdings, or any of
      them, as the context may require;

	 	 	 
	 	(oo) 	
      Warrantors' Proportions – means, in respect of
      -

	 	(i) 	
      AJD Holdings - 25.6%; and

	 	 	 
	 	(ii) 	
      Richmark – 74.4%;

	 	(pp) 	
      2017 Financial Statements - the consolidated,
      audited, annual financial statements of the Company in respect of the
      financial year commencing on 1 March 2017 and ending on 30 June
    2017.

	2. 	
      IMPLEMENTATION

	 	 
		
      This Agreement constitutes Step 2 of the Proposed
      Transaction, as provided for in clause 2.2(b) of the Framework
      Agreement.

	 	 
	3. 	
      CONDITION PRECEDENT

	 	 
	3.1 	
      This Agreement (other than the provisions of clause 1,
      this clause 3, clause 7, clause 8, clause 10 and clauses 15 to 21, by
      which the Parties shall be bound and remain bound from the Signature Date)
      is subject to the fulfilment of the condition precedent, that on or before
      30 September 2017, the Framework Agreement has been entered into and
      become unconditional in accordance with its terms (other than in respect
      of any condition which requires this Agreement to become
      unconditional).

	 	 
	3.2 	
      If the Condition Precedent is not fulfilled on or before
      the date prescribed for fulfilment thereof in 3.1 (or such later date or
      dates as may be agreed in writing between the Parties)
  then:

	 	(a) 	
      this whole Agreement (other than the provisions of clause
      1, clause 3 and clauses 16 to 21, by which the Parties shall remain bound)
      shall be of no force or effect;

6 

	 	(b) 	
      the Parties shall be restored as near as possible to the
      positions in which they would have been had this Agreement not been
      entered into; and

	 	 	 
	 	(c) 	
      no Party shall have any claim against the others in terms
      of this Agreement.

	4. 	
      SUBSCRIPTION AND SETTLEMENT BY NET 1

	 	 
	4.1 	
      On the Effective Date, and in accordance with the
      sequence of transaction steps provided for in the Framework Agreement, Net
      1 hereby subscribes for the Subscription Shares, at the Subscription
      Price.

	 	 
	4.2 	
      The Subscription Price shall be settled in full by Net 1
      in cash on the Effective Date as provided for in 5.1 below.

	 	 
	4.3 	
      It is hereby recorded that the Subscription Price was
      negotiated and ultimately agreed to with reference to the earnings of the
      Company.

	 	 
	4.4 	
      On the Issue Date, all risk in and benefits attaching to
      the Subscription Shares shall vest in Net 1.

	 	 
	5. 	
      PAYMENT

	 	 
	5.1 	
      Net 1 shall make payment of the Subscription Price by way
      of an electronic transfer into a bank account nominated by the Company for
      this purpose in writing, which payment shall be in full and final
      settlement of Net 1's obligations to make payment of the Subscription
      Price to the Company.

	 	 
	5.2 	
      Upon receipt of the Subscription Price, subject to
      section 46 of the Companies Act, the Company shall distribute dividends in
      an amount of ZAR 944,999,979 to AJD Holdings and Richmark, as
    follows:

	 	(a) 	
      AJD Holdings – ZAR 241,919,994.62; and

	 	 	 
	 	(b) 	
      Richmark – ZAR 703,079,984.38,

as holders of ordinary shares in the
Company. 

	5.3 	
      If for whatsoever reason Net 1 fails and/or neglects to
      pay on the Effective Date, the whole or any portion of the Subscription
      Price, taking into account interest and other adjustments thereto under
      this Agreement, then and in such event, in addition to any other remedies
      to which the aggrieved Party is entitled, penalty interest shall accrue
      thereon at the Prime Rate plus 2% per annum, calculated from its due date
      for payment, to date of actual payment.

	 	 
	5.4 	
      Any payments made by Net 1 shall first be applied towards
      the payment of the Subscription Price.

	 	 
	6. 	
      ADJUSTMENT FOR LEAKAGE

	 	 
	6.1 	
      Notwithstanding anything to the contrary contained in
      this Agreement, it is recorded that the Subscription Price has been
      determined and agreed on the basis that, during the Interim Period, no
      Leakage has occurred or will occur.

	 	 
	6.2 	
      As such to the extent that Net 1 advises the Warrantors
      of Leakage or Net 1 otherwise becomes aware of any such Leakage prior to
      the Issue Date or after the Issue Date, Net 1 shall have a claim against
      the Warrantors for an amount equal to 45% of the Leakage provided that Net
      1 notifies the Warrantors of the Leakage within a period of 6 months from
      the Issue Date. The Leakage shall become payable by the Warrantors in the
      Warrantor Proportions to Net 1 within 5 Business Days of delivery by Net 1 of written notice,
which sets out in reasonable detail, the calculation of the amount of the
Leakage to the Warrantors (Leakage Repayment). 

7 

	6.3 	
      In the event that the Warrantors dispute the
      determination of the Leakage Repayment:

	 	(a) 	
      the Warrantors shall raise such dispute by means of
      written notice to Net 1 within a period of 5 Business Days after delivery
      of the written demand contemplated in clause 6.2, setting out the basis of
      the objection; and

	 	 	 
	 	(b) 	
      that dispute will be referred to independent auditors for
      determination, who shall act as experts and not as arbitrators. For
      purposes hereof, independent auditors shall mean such independent auditors
      as may be agreed in writing between the Warrantors and Net 1, or failing
      agreement within 10 Business Days from the date of a written request by
      any such Party for such agreement, appointed by the Executive President,
      or failing him for any reason, then by the most senior officer for the
      time being of the South African Institute of Chartered Accountants from
      one of the 6 largest (based on number of partners or shareholders or
      directors) independent firms of auditors in the RSA at the
  time.

	7. 	
      INTERIM PERIOD

	 	 
	7.1 	
      The Warrantors shall procure that during the Interim
      Period, the Business will be carried on in substantially the Ordinary
      Course of Business other than as Fairly Disclosed in the Disclosure
      Schedule, and the Group shall not enter into any contract or commitment or
      do anything which, in any such case, is out of the Ordinary Course of
      Business. In particular, but without limitation to the generality of the
      aforegoing, the Warrantors and the Company undertake that during the
      Interim Period the Group will not (other than as Fairly Disclosed in the
      Disclosure Schedule) –

	 	(a) 	
      alter the existing nature or scope of the
  Business;

	 	 	 
	 	(b) 	
      manage the Business otherwise than in accordance with its
      business and trading policies and practices up to the Signature Date,
      except as may be necessary to comply with any statutory changes;

	 	 	 
	 	(c) 	
      alter any of the rights attaching to the shares in any
      Group Company;

	 	 	 
	 	(d) 	
      increase, alter, reduce or convert the authorised or
      issued shares of any Group Company other than as contemplated in the
      Transaction Agreements;

	 	 	 
	 	(e) 	
      issue or allot any shares, capitalisation shares, bonus
      shares, share options, share warrants, debentures or any securities in any
      Group Company other than as contemplated in the Transaction
    Agreements;

	 	 	 
	 	(f) 	
      approve or permit the transfer of any issued shares in
      any Group Company other than as contemplated in the Transaction
      Agreements. Notwithstanding the aforegoing, minority shareholders of any
      Group Company shall be entitled to transfer any issued shares held by that
      minority shareholder in the Group Company to a related party of that
      minority shareholder, in accordance with the terms of the relevant
      shareholders agreement or memorandum of incorporation of that Group
      Company (as the case may be);

	 	 	 
	 	(g) 	
      repurchase any issued shares of any Group
  Company;

	 	 	 
	 	(h) 	
      enter into any agreement or arrangement or permit any
      action whereby any other company becomes its
subsidiary;

8 

	 	(i) 	
      enter into any transaction other than on arms'-length
      terms and for full and proper consideration;

	 	 	 
	 	(j) 	
      acquire or enter into any agreement to acquire (whether
      by one transaction or a series of transactions) the whole or a substantial
      or material part of the business, undertaking or assets of any other
      persons;

	 	 	 
	 	(k) 	
      dispose of or enter into any agreement to dispose of
      (whether by one transaction or by a series of transactions) the whole or
      any substantial or material part of the Business;

	 	 	 
	 	(l) 	
      incur or agree to incur any capital expenditure other
      than in the normal and Ordinary Course of Business;

	 	 	 
	 	(m) 	
      take or agree to take any loans, borrowings or other
      forms of funding or financial facilities or assistance, or enter into or
      agree to enter into any foreign exchange transactions (which are not in
      the Ordinary Course of Business), guarantees or other similar
      agreements;

	 	 	 
	 	(n) 	
      grant or agree to grant any loans or other financial
      facilities or assistance to or any guarantees or indemnities for the
      benefit of any person or create any mortgage, charge or other encumbrance
      over the whole or any part of its undertakings or assets;

	 	 	 
	 	(o) 	
      enter into or agree to enter into any joint venture,
      partnership or agreement or other venture for the sharing of profits or
      assets;

	 	 	 
	 	(p) 	
      enter into or agree to enter into any death, retirement,
      profit-sharing, bonus, share option, share incentive or other scheme for
      the benefit of any of its employees or make any variation (including, but
      without limitation, any increase in the rates of contribution) to any such
      existing scheme or effect any keyman insurance;

	 	 	 
	 	(q) 	
      commence, compromise or discontinue any legal,
      administrative, regulatory or arbitration proceedings other than
  –

	 	(i) 	
      routine debt collection in the Ordinary Course of
      Business; or

	 	 	 
	 	(ii) 	
      any proceedings reasonably necessary to secure or
      preserve any right of the Group (including, but not limited to, the
      interruption of prescription or the obtaining of an interdict or mandamus)
      and in respect of which proceedings the Company undertakes to consult with
      Net 1;

	 	(r) 	
      repay or prepay any loans of whatsoever nature and
      amount, any borrowings or any other financial facility or assistance made
      available to it (excluding amounts payable in the normal and Ordinary
      Course of Business);

	 	 	 
	 	(s) 	
      terminate the employment or office of any of its senior
      employees or appoint any new director, officer or senior employee or
      consultant or materially alter the terms of employment or engagement of
      any of the employees (whether senior or junior), consultants, directors or
      officers including increasing employees' or directors' compensation or
      benefits, except in the normal and Ordinary Course of Business and
      consistent with past practices;

	 	 	 
	 	(t) 	
      make or agree to any amendment, variation, deletion,
      addition, renewal or extension to or of, terminate or give any notice or
      intimation of termination of or breach or fail to comply with the terms of
      any contract or arrangement with third parties;

	 	 	 
	 	(u) 	
      make any changes to its accounting policies and
      procedures; or

	 	 	 
	 	(v) 	
      permit the occurrence of any
Leakage.

9 

	7.2 	
      The Warrantors shall procure that the Company shall,
      during the Interim Period:

	 	(a) 	
      change the financial year end of the Company to June as
      soon as possible after the Signature Date;

	 	 	 
	 	(b) 	
      keep Net 1 appraised of all and any material decisions
      which the Group intends to make in respect of the Business, it being
      specifically recorded and agreed that nothing in this clause 7 shall
      entitle Net 1 to determine and/or materially to influence any such
      material decision or to manage and/or control the Group in any
  way;

	 	 	 
	 	(c) 	
      prepare monthly management accounts as soon as possible
      after each month end but in any event by not later than 30 days thereafter
      and circulate such management accounts to Net 1 as soon as they have been
      prepared;

	 	 	 
	 	(d) 	
      permit representatives of Net 1 to have full access at
      all reasonable times, and in a manner so as not unreasonably to interfere
      with the normal business operations of the Group, to all premises,
      properties, personnel, books, records (including tax records), contracts,
      and documents of or pertaining to the Group and/or the Business;

	 	 	 
	 	(e) 	
      keep the Business and the assets of the Group used in
      respect of the Business (Business Assets) substantially intact,
      including the present operations, physical facilities, working conditions,
      and relationships with lessors, licensors, suppliers, customers and the
      employees; and

	 	 	 
	 	(f) 	
      give prompt notice to the Net 1 of any adverse
      development causing a breach or which is likely to cause a breach of any
      of the Warranties; provided that no disclosure by any Party in terms of
      this clause 7.2 shall be regarded as amending or supplementing the
      Disclosure Schedule or shall prevent or cure any misrepresentation, breach
      of Warranty or breach of any undertaking.

	7.3 	
      Notwithstanding anything to the contrary contained herein
      and subject to (i) Companies Act; and (ii) the discretion of the board of
      directors of the Company, it is:

	 	(a) 	
      recorded that:

	 	(i) 	
      the holders of Ordinary Shares will be entitled to a
      distribution to be declared by the Company as soon as reasonably possible
      after the Effective Date ("Designated Distribution"), provided
      that:

	 	(A) 	
      the amount of the Designated Distribution shall be equal
      to the PAT in respect of the Designated Period. For the avoidance of
      doubt, the Designated Distribution shall (if applicable) be paid less any
      dividends tax which shall be withheld by the Company, prior to
      distribution;

	 	 	 
	 	(B) 	
      the record date for determining the shareholders of the
      Company who are entitled to participate in the Designated Distribution
      shall be the first Business Day after the Effective Date;

	 	 	 
	 	(C) 	
      the Warrantors have delivered to Net 1 written notice of
      such proposed Designated Distribution by no later than 5 Business Days
      after the PAT Determination Date (Notice Date) which: (i) sets out
      in reasonable detail, the calculation of the amount of such Designated
      Distribution; and (ii) encloses a copy of written resolution by the
      Company's board of directors approving the Designated Distribution;
    and

10 

	 	(D) 	
      Net 1 has given its prior written consent to such
      proposed Designated Distribution (which consent may not be unreasonably
      withheld), within 5 Business Days of the Notice Date;
and

	 	(ii) 	
      the Designated Distribution shall be paid out of the
      available free cash of the Company to the holders of Ordinary Shares, in
      the Warrantor’s Proportions, in one or more payments after the Notice
      Date, having regard to the cash flow and working capital requirements of
      the Company at the time. Notwithstanding the aforegoing, the Designated
      Distribution shall be paid in full to the Warrantors within 6 months of
      the Notice Date;

	 	(b) 	
      agreed that the Designated Distribution shall constitute
      a Permitted Leakage.

	7.4 	
      The Warrantors shall procure
that:

	 	(a) 	
      the board of directors of the Company considers the terms
      of the proposed Designated Distribution in terms of the Companies
    Act;

	 	 	 
	 	(b) 	
      to the extent required, the Warrantors approve the terms
      of the proposed Designated Distribution; and

	 	 	 
	 	(c) 	
      the Warrantors deliver the notice contemplated in clause
      7.3(a)(i)(C) to Net 1 by not later than the time period specified in
      7.3(a)(i)(C).

	7.5 	
      In the event that Net 1 disputes any of the terms of the
      Designated Distribution:

	 	(a) 	
      Net 1 shall raise such dispute by means of written notice
      to the Warrantors within a period of 5 business days after the Notice
      Date, setting out the basis of the objection; and

	 	 	 
	 	(b) 	
      that dispute will be referred to independent auditors for
      determination, who shall act as experts and not as arbitrators. For
      purposes hereof, independent auditors shall mean such independent auditors
      as may be agreed in writing between the Warrantors and Net 1, or failing
      agreement within 10 Business Days from the date of a written request by
      any such Party for such agreement, appointed by the Executive President,
      or failing him for any reason, then by the most senior officer for the
      time being of the South African Institute of Chartered Accountants from
      one of the 6 largest (based on number of partners or shareholders or
      directors) independent firms of auditors in the RSA at the
  time.

	7.6 	
      In the event that Net 1 does not consent to the
      Designated Distribution in writing within the period contemplated in
      clause 7.3(a)(i)(D) for whatever reason, then the terms of the Designated
      Distribution will be referred to independent auditors for determination,
      and the provisions of clause 7.5(b) shall apply mutatis
      mutandis.

	8. 	
      2017 FINANCIAL STATEMENTS

	 	 
	8.1 	
      The Company shall procure the preparation of the 2017
      Financial Statements and the audit thereof by the Auditors as soon as
      reasonably possible after the Signature Date. In addition, the Company
      shall procure that the Auditors extract or calculate the PAT from the 2017
      Financial Statements.

	 	 
	8.2 	
      The Company shall deliver the 2017 Financial Statements
      to Net 1 as soon as they are available.

	 	 
	8.3 	
      The Company shall use all reasonable endeavours to
      procure that the Auditors prepare the 2017 Financial
  Statements:

11 

	 	(a) 	
      in conformity with the requirements of the Companies Act
      and in accordance with IFRS; and

	 	 	 
	 	(b) 	
      save as expressly stated therein as to method and effect,
      on a basis consistent with the basis upon which previous consolidated
      audited financial statements of the Group were
prepared.

	8.4 	
      Net 1 shall, within 10 Business Days after delivery of
      the 2017 Financial Statements (Objection Period), review same in
      conjunction with its professional advisors and notify the Company in
      writing if it accepts the 2017 Financial Statements and the calculation of
      the PAT (in which case the provisions of clause 8.6 shall apply) or if it
      wishes to raise an objection (in which case the provisions of clause 8.5
      and clauses 8.7 to 8.9 (both inclusive) shall apply).

	 	 
	8.5 	
      During the Objection Period, the Company shall ensure
      that Net 1 and its professional advisors are provided with access to the
      Auditors for the purposes of reviewing and discussing the audit work
      papers of the Auditors in preparing the 2017 Financial Statements and the
      extraction or calculation of the PAT.

	 	 
	8.6 	
      In the event that Net 1 advises the Company that it
      accepts the 2017 Financial Statements and the calculation of the PAT, the
      2017 Financial Statements and the calculation of the PAT shall be final
      and binding on the Parties for all purposes under this
Agreement.

	 	 
	8.7 	
      Should any objection be raised by Net 1 in respect of the
      2017 Financial Statements and/or the calculation of PAT, by way of a
      written notice to that effect to the Company (Dispute Notice)
      within the Objection Period, then the difference or dispute shall be
      submitted for determination as follows –

	 	(a) 	
      the difference or dispute shall be decided on by an
      independent investment bank or one of KPMG, Deloitte,
      PricewaterhouseCoopers or Ernst & Young, agreed upon between the
      Parties within 10 days after the Dispute Notice is delivered, failing such
      agreement, to be nominated by the chairperson or like officeholder for the
      time being of the South African Institute of Chartered Accountants, or its
      successor-in-title or, failing that body, by the Arbitration Foundation of
      South Africa (Expert);

	 	 	 
	 	(b) 	
      the Expert shall:

	 	(i) 	
      in making his determination, act as an expert and not as
      an arbitrator. However, the Company and Net 1 will be afforded a
      reasonable opportunity to make representations to the Expert and shall
      provide such information as may be required by the Expert in accordance
      with the procedures, and within the time periods, determined by the
      Expert, provided that the Expert shall be entitled to make his decision
      whether or not such representations were submitted to him; and

	 	 	 
	 	(ii) 	
      hear the matter informally and as soon as possible, it
      being agreed that the Parties shall use their commercially reasonable
      endeavours to procure that the Expert makes his determination within 30
      days after the date upon which the matter was referred to the
    Expert;

	 	 	 
	 	(iii) 	
      the Expert's decision as to any matter referred to him
      for determination shall, in the absence of manifest error, be final and
      binding in all respects on the Parties; and

	 	 	 
	 	(iv) 	
      the fees and expenses of the Expert shall be borne and
      paid as the Expert shall direct (or in the absence of any such direction,
      shall be paid by the Company).

12 

	8.8 	
      If:

	 	(a) 	
      all of Net 1 objections are rejected by the Expert, then
      the 2017 Financial Statements and the PAT as submitted to the Expert shall
      be final and binding on the Parties for all purposes of this Agreement
      (save for any manifest error in calculation); or

	 	 	 
	 	(b) 	
      any of Net 1's objections are accepted by the Expert,
      then the 2017 Financial Statements and PAT, as amended by the Expert in
      response to the objections, shall be final and binding on the Parties for
      all purposes of this Agreement (save for any manifest error in
      calculation).

	8.9 	
      Once the Expert has given his ruling on all matters
      raised in the Dispute Notice, the 2017 Financial Statements and the PAT
      shall, to the extent necessary, be amended by the Expert as part of his
      ruling to reflect all matters included in that ruling and shall then be
      regarded as agreed for all purposes of this Agreement.

	 	 
	9. 	
      CLOSING

	 	 
	9.1 	
      On the Issue Date, representatives of the Parties shall
      meet at Richmark's offices, Capital Hill Building, 6 Benmore Road,
      Sandton, 2196 or such other date and/or time as may be agreed by the
      Parties in writing.

	 	 
	9.2 	
      At that meeting, and in respect of the subscription as
      herein contemplated:

	 	(a) 	
      in the event that the Issue Date coincides with the
      Effective Date, Net 1 shall discharge its obligations in terms of the
      Subscription Price, as provided for in clause 4 above;

	 	 	 
	 	(b) 	
      the Company shall, on receipt of the proof of payment of
      the Subscription Price as contemplated in clause
5:

	 	(i) 	
      allot and issue the Subscription Shares to Net 1 as fully
      paid and deliver share certificates in respect of the Subscription Shares
      to Net 1;

	 	 	 
	 	(ii) 	
      procure that Net 1 is recorded as a shareholder in the
      securities register of the Company and deliver an extract of the
      securities register of the Company to Net 1 updated to reflect Net 1 as
      the holder of the Subscription Shares; and

	 	 	 
	 	(iii) 	
      deliver to Net 1:

	 	(A) 	
      to the extent necessary and applicable, the written
      resignation of each director appointed by the Warrantors, save for the
      directors appointed by Richmark and AJD Holdings in accordance with clause
      8.1(b) of the Shareholders' Agreement, with effect from the Issue Date and
      confirming that such director waives all claims, whether in contract or
      delict, actual or contingent, that he may have against the
  Company;

	 	 	 
	 	(B) 	
      notices from each of the remaining directors of the
      Company, with effect from the Issue Date, confirming that such director
      waives all claims, whether in contract or delict, actual or contingent,
      that he may have against the Company; and

	 	 	 
	 	(C) 	
      a written resolution of the shareholders of the Company,
      appointing the nominated directors of Net 1, in accordance with clause
      8.1(b) of the shareholders agreement to be entered into between Net 1,
      Richmark, AJD Holdings and the Company, contemporaneously with this
      Agreement;

13 

	9.3 	
      The Parties may however dispense with a formal meeting as
      contemplated in this clause 9 and instead arrange for completion of such
      matters in such manner as may be specifically agreed, in writing
      (including email), to be convenient.

	 	 
	10. 	
      FILING OF NEW MOI

	 	 
		
      Should the New MOI not be filed in the manner and form
      prescribed by the Companies Act (read with the Companies Regulations,
      2011) with the Companies and Intellectual Property Commission within a
      period of 120 days from the Signature Date, Net 1 shall be entitled (but
      not obliged) to terminate the Agreement by way of written notice to the
      Company and the Warrantors, in which event, the Company shall repay, and
      the Warrantors shall procure the Company repays, immediately to Net 1 the
      Subscription Price together with interest thereon accrued at the Prime
      Rate from the Subscription Date up to the date of actual repayment by the
      Company under this clause 10.

	 	 
	11. 	
      STARTER PACK CO

	 	 
	11.1 	
      The Warrantors shall procure that, subject to regulatory
      approvals and as soon as reasonably possible following the Effective Date
      but in any event prior to the first anniversary of the Effective
    Date:

	 	(a) 	
      the Company acquires 100% of the issued shares in the
      Starter Pack Co for ZAR 203,000,000, on terms and conditions that Net 1
      has confirmed in writing as being acceptable to Net 1 (acting reasonably
      and in good faith); and

	 	 	 
	 	(b) 	
      the Company and Starter Pack Co shall enter into a
      management services agreement, in terms of which, the Company shall be
      responsible for the management of Starter Pack Co, for the duration of the
      Measurement Period, on terms and conditions that Net 1 has confirmed in
      writing as being acceptable to Net 1 (acting reasonably and in good
      faith).

	11.2 	
      The Warrantors shall provide the Company with the
      necessary funding, to allow it to meet its obligations in terms of the
      clause 11.1 above in the Warrantor’s Proportions.

	 	 
	11.3 	
      Notwithstanding the aforegoing, in the event that the
      Company is unable to acquire 100% of the issued shares in the Starter Pack
      Co, for whatever reason, the Warrantors shall procure that the Company is
      placed in the same economic position as it would have been, had the
      Warrantors complied with their obligations contemplated 11.1(a).

	 	 
	12. 	
      WARRANTIES

	 	 
		
      The Warrantors, jointly in the Warrantors' Proportions
      (and not jointly and severally) (except where it is expressly stated in
      this Agreement that a warranty is given separately and individually), give
      to Net 1 the Warranties, on the basis that:

	 	 
	12.1 	
      insofar as any Warranty is promissory or relates to a
      future event, it shall be deemed to have been given as at the due date for
      fulfilment of the promise or the happening of the event;

	 	 
	12.2 	
      save where any Warranty is expressly limited to a
      particular date, is given as at the Signature Date, the Effective Date and
      the Issue Date, and all periods between those dates;

	 	 
	12.3 	
      be deemed to be material and to be a material
      representation inducing Net 1 to enter into this Agreement;

	 	 
	12.4 	
      each Warranty shall be a separate warranty and in no way
      be limited or restricted by reference to or inference from the terms of
      any other Warranty; and

14 

	12.5 	
      the Warranties shall remain in force notwithstanding
      completion of the matters provided for in this Agreement.

	 	 
	13. 	
      LIMITATION OF LIABILITY

	 	 
	13.1 	
      The Warranties are limited and qualified by (and as a
      result no liability shall attach to the Warrantors and/or the Company to
      the extent that) anything Fairly Disclosed in:

	 	(a) 	
      any document contained in the DVD;

	 	 	 
	 	(b) 	
      the Disclosure Schedule; and

	 	 	 
	 	(c) 	
      information (including any fact, matter, circumstance
      and/or risk) which is, as at the Signature Date and the Effective Date,
      within the actual knowledge of Chris Seabrooke or any executive director
      of Net 1 (the Subscriber
Representatives).

	13.2 	
      No warranties or representations (whether made
      negligently or innocently), express or implied or tacit whether by law,
      contract or otherwise and whether they induced the contract or not, which
      are not set forth in this Agreement shall be binding on the Warrantors
      and/or the Company, but excluding, for the avoidance of doubt, any
      fraudulent or intentional misrepresentation.

	 	 
	13.3 	
      For the avoidance of doubt and notwithstanding anything
      to the contrary contained in this Agreement -

	 	(a) 	
      the Warrantors shall not be liable for any
      forward-looking statements and/or representations, regarding the future
      financial position, performance or business strategy of the Group.
      Accordingly, the actual performance of the Company or any subsidiary of
      the Company may accordingly differ from forward-looking statements and/or
      representations made by the Warrantors; and

	 	 	 
	 	(b) 	
      Net 1 shall not be entitled to make any Claim (as
      described below) against the Warrantors in respect of and/or in connection
      with any breach of the Warranties or any other provision of this
      Agreement, if that Claim would result in Net 1 being compensated more than
      once for the same damage or loss. Accordingly, a Claim by Net 1 arising
      out of a breach of any one or more Warranties and/or other relevant
      provision of this Agreement, shall not entitle Net 1 to make a Claim
      against the Warrantors in respect of more than one Warranty or other claim
      arising from or which is attributable to the same cause of
  action.

	13.4 	
      For the purposes of clause 12, this clause 13
      "Claims" means any claim by Net 1 against the Warrantors of any
      nature whatsoever and howsoever arising out of or in connection with a
      breach of any Warranties and/or any indemnities but only to the extent
      that clause 14 expressly provides that such indemnities will be made
      subject to the provisions of this clause 13.

	 	 
	13.5 	
      Notwithstanding the Warranties, representations and
      indemnifications given by the Warrantors, no liability shall attach to a
      Warrantor in relation to Claims:

	 	(a) 	
      which are less than ZAR 15,000,000 in aggregate, and the
      applicable Warrantors' Proportion of ZAR 15,000,000 in respect of a
      Warrantor, provided that: (i) when such aggregate or individual claims or
      loss exceed the said amount, the Warrantors shall, subject to clause
      13.5(b) and clause 13.5(c), be liable for the full amount of such claim/s
      and/or loss and/or liabilities and not only for the amount in excess of
      the said amount; (ii) regard shall only be had to individual claims and/or
      losses which exceed ZAR 250,000 per individual claim and/or loss in
      determining whether the aforementioned ZAR 15,000,000 threshold has been
      reached; (iii) the aforegoing restrictions shall not apply to any Claims relating to
      the Title Warranties, the Capacity and Authority Warranties, the Financial
  Warranties and the Net Working Capital Warranty;

15 

	 	(b) 	
      if Net 1 has not issued summons against a Warrantor for
      recovery of such Claims, or made a demand for arbitration in regard
      thereto within 30 calendar months (ignoring any portion of a calendar
      month should the Issue Date not coincide with the first day of a calendar
      month) of the Issue Date provided that the aforegoing restriction shall
      not apply to any Claims relating to the Tax Warranties (in which case
      summons or demand must be made within 5 years of the most recent date of
      assessment of the applicable Group Company to which the Claim relates);
      or

	 	 	 
	 	(c) 	
      which in aggregate exceed an amount equal to ZAR
      112,500,000 on the basis that the aggregate amount recoverable from a
      Warrantor, exclusive of interest and costs, from whatever cause arising,
      shall be limited to the Warrantor's Proportion of the Subscription Price,
      provided that the aforegoing restriction shall not apply to any Claims
      relating to the Title Warranties, the Capacity and Authority Warranties,
      the Tax Warranties, the Financial Warranties and the Net Working Capital
      Warranty (in respect of which the maximum amount shall be the Subscription
      Price).

	13.6 	
      Notwithstanding anything to the contrary contained
      herein, the Warrantors shall only be liable for claims in terms of this
      clause 13 in the Warrantors' Proportions (save for any claims in relation
      to the breach of any Warranties which are given separately and
      individually in terms of this Agreement).

	 	 
	13.7 	
      The aggregate damages that Net 1 suffers as a result of a
      Claim shall be reduced (at a maximum, to ZAR 0) by the aggregate of
    –

	 	(a) 	
      an amount equal to 45% of any assessed Tax benefit
      (including without limitation any reduction in the Taxes due,
      deductibility of the damages suffered by the Group or the incurral of a
      capital loss that may be used to reduce capital gains in the future) as
      and when such Tax benefit accrues to the Group as a direct result
      thereof;

	 	 	 
	 	(b) 	
      45% of any amount actually recovered by the Group from
      any third party in respect thereof (including, but not limited to any
      insurer);

	 	 	 
	 	(c) 	
      the amount of any reduction in the subscription price
      payable in terms of the Additional Subscription Agreement which is
      directly attributable to the effect of the facts giving rise to such Claim
      on the calculation of PBT (as defined in the Additional Subscription
      Agreement);

	 	 	 
	 	(d) 	
      any amount by which the subject matter of the Claims has
      been or is made good or otherwise compensated for, less any cost thereof
      to Net 1 and/or the Group,

and any amount refunded to the
Warrantors by Net 1 or any reduction in damages in terms of this clause 13.7
shall be regarded as never having been claimed from the Warrantors and/or the
Company for purposes of clause 13.5.

	13.8 	
      Notwithstanding anything to the contrary contained in
      this Agreement, no liability shall attach to the Warrantors and/or the
      Company in respect of any Claim to the extent
that:

	 	(a) 	
      the Claim is for any indirect, special or consequential
      damages (including loss of profit) of whatsoever nature suffered by any
      subsidiary of the Company and/or Net 1;

	 	 	 
	 	(b) 	
      the Claim or the events giving rise to the Claim would
      not have arisen but for an act, omission or transaction of any of the
      Subscriber Representatives, or any employee of Net 1 who participated in
      or was involved in the Due Diligence
Investigation;

16 

	 	(c) 	
      the Claim is based upon a liability which is contingent
      only, unless and until such contingent liability becomes an actual
      liability or until the same is finally adjudicated;

	 	 	 
	 	(d) 	
      allowance, provision or reserve in respect of the matter
      giving rise to the Claim shall have been made in the Warranted Accounts;
      and/or

	 	 	 
	 	(e) 	
      the Claim occurs wholly or partly out of or the amount
      thereof is increased as a result of any change in law, regulation,
      guideline, codes of conduct, and the like or in their interpretation or
      administration by the South African courts, or by any other fiscal,
      monetary or regulatory authority, whether or not having the force of law,
      after the Issue Date.

	13.9 	
      Notwithstanding anything to the contrary contained in
      this Agreement, no liability will arise and no Claim may be made if the
      matter giving rise to such Claim is remediable, to the reasonable
      satisfaction of Net 1, within the period of 30 days of receipt of written
      notice by Net 1 to the Warrantors and/or the Company requiring the
      Warrantors and/or the Company to remedy the matter giving rise to such
      Claim (or if it is not reasonably possible to remedy the matter giving
      rise to such Claim within 30 days, within such further period as may be
      reasonable in the circumstances provided that the Warrantors and/or the
      Company furnishes evidence within the period of 30 days, reasonably
      satisfactory to Net 1, that it has taken whatever steps are available to
      it, to commence remedying the matter giving rise to such Claim).

	 	 
	13.10 	
      Unless it is restricted by law from doing so and/or the
      Warrantors and/or the Company is the counterparty of Net 1 in any such
      Claim, Net 1 shall:

	 	(a) 	
      within 10 Business Days inform the Warrantors and/or the
      Company in writing of any fact, matter, event or circumstance which comes
      to its notice or to the notice of its holding or subsidiary companies
      whereby it appears that the Warrantors and/or the Company is or may be
      liable to make any payment in respect of any Claim;

	 	 	 
	 	(b) 	
      thereafter keep the Warrantors and/or the Company fully
      informed of all developments in relation thereto; and

	 	 	 
	 	(c) 	
      provide access to its personnel and premises and give all
      such information and documentation (no matter how it is recorded or
      stored) as the Warrantors and/or the Company shall request in connection
      therewith.

	13.11 	
      Nothing in this Agreement shall or shall be deemed to
      relieve Net 1 or any of their shareholders or subsidiary companies of any
      common law or other duty to mitigate any loss or damage incurred by
      them.

	 	 
	13.12 	
      In the event of a Claim, the Warrantors shall cede their
      respective rights to claim from Gain under any corresponding breach in
      terms of the Gain Sale of Shares Agreement to Net 1, on such terms as Net
      1 may agree to in writing (acting reasonably and in good faith). The
      provisions of clause 13.7 shall apply mutatis mutandis to any
      amount recovered by Net 1 from Gain pursuant to such cession.

	 	 
	13.13 	
      Notwithstanding anything to the contrary contained in
      this Agreement, the Title Warranties and the Capacity and Authority
      Warranties shall not be limited or qualified in any respect whatsoever,
      and no disclosure (regardless of whether a fact or circumstance is Fairly
      Disclosed) shall be regarded as amending or supplementing the Disclosure
      Schedule or shall prevent or cure any misrepresentation or breach of a
      Title Warranty and/or Capacity and Authority Warranty, as the case may
      be.

17 

	14. 	
      INDEMNITIES BY THE WARRANTORS

	 	 
	14.1 	
      Without prejudice to any rights of Net 1 arising from any
      other provision of this Agreement and to the extent that such liability is
      not fully provided for or reflected as a liability in the Warranted
      Accounts, the Warrantors hereby jointly in the Warrantors' Proportions
      agree to indemnify and hold Net 1 harmless from and against the entirety
      of any Adverse Consequences which Net 1 may suffer (whether directly or
      indirectly) resulting from, arising out of, or relating to
  –

	 	(a) 	
      a failure of any of the Warranties or any undertakings
      contained in this Agreement to be true and correct; and/or

	 	 	 
	 	(b) 	
      any liability for tax not fully provided for in the
      Warranted Accounts for all periods prior to the Issue
  Date.

	14.2 	
      The indemnification provisions in this clause 14 are in
      addition to, and do not in any way derogate from, any statutory or common
      law remedy Net 1 may have for breach of this Agreement, including breach
      of any representation or Warranty.

	 	 
	14.3 	
      The indemnities provided for in clause 14.1(a) shall be
      limited as provided for in clause 13 above, mutatis mutandis,
      provided that none of the indemnities in relation to liability for Tax
      (whether arising out of a breach of the provisions of clause 14.1(a) or
      14.1(b)) shall be limited by any provision of clause 13.

	 	 
	14.4 	
      Defence of Claims:

	 	(a) 	
      Upon a third party threatening or bringing a Claim in
      respect of which the Warrantors have given an indemnity, pursuant to this
      14:

	 	(i) 	
      the Company will notify the Warrantors as soon as
      reasonably possible upon becoming aware of the Claim provided, however,
      that no delay on the part of the Company in so notifying the Warrantors
      shall relieve the Warrantors from any obligation hereunder unless (and
      then solely to the extent that) the Warrantors are thereby prejudiced;
      and

	 	 	 
	 	(ii) 	
      the Warrantors will elect whether or not to defend the
      Claim, in accordance with clause 14.4(b) and 14.4
below.

	 	(b) 	
      The Warrantors may elect, by giving written notice signed
      by all Warrantors, and nominating and appointing one Warrantor to act on
      behalf of all Warrantors in all respects, within 14 Business Days
      following receipt of the notice provided for in 14.4 or, if earlier, 7
      Business Days prior to the first date when a response to the Claim is due,
      to assume control of the defence and settlement of the Claim, in which
      case:

	 	(i) 	
      the Warrantors will, at their own expense, defend the
      Claim and have control of the conduct of the defence and settlement of the
      Claim, provided however that Net 1 will have the right
  to:

	 	(A) 	
      participate in any defence and settlement, such
      participation to be at its own cost where it is not pursuant to a request
      for participation from the Warrantors;

	 	 	 
	 	(B) 	
      join the Warrantors as a defendant in legal proceedings
      arising out of the Claim;

	 	(ii) 	
      Net 1 will:

18 

	 	(A) 	
      not make admissions (except under compulsion of law),
      agree to any settlement or otherwise compromise the defence or settlement
      of the Claim without prior written approval of the Warrantors, which will
      not be unreasonably withheld;

	 	 	 
	 	(B) 	
      give, at the Warrantors' request and cost, all reasonable
      assistance in connection with the defence and settlement of the
    Claim.

	15. 	
      NET 1'S RIGHT TO TERMINATE

	 	 
		
      Notwithstanding anything to the contrary contained in
      this Agreement (including the fulfilment or waiver, as the case may be, of
      the Condition Precedent), Net 1 shall be entitled to cancel this Agreement
      by means of written notice to the other Parties at any time prior to the
      Effective Date, in the event that –

	 	 
	15.1 	
      Net 1 becomes aware that any Warranty is not true and
      correct in all respects and/or that the Company or a Warrantor is in
      breach of any Warranty which exceeds the threshold under clause 13.5(a) or
      will be so in breach on or at any time after the Effective Date;

	 	 
	15.2 	
      a Warrantor or any Group Company is sequestrated,
      liquidated or placed under judicial management, whether provisionally or
      finally (or any application is launched in that regard);

	 	 
	15.3 	
      business rescue proceedings in terms of the Companies Act
      are commenced against a Warrantor or any Group Company, whether by way of
      board resolution or court order; or

	 	 
	15.4 	
      any interdict, judgment or other order or action of any
      court or governmental body restraining, prohibiting or rendering illegal
      the implementation of the transactions contemplated in this Agreement is
      in effect, or any legal proceeding has been instituted by any person
      (including any governmental body) seeking to prohibit, restrict or delay,
      declare illegal or to enjoin the implementation of the transactions
      contemplated herein.

	 	 
	16. 	
      CONFIDENTIALITY

	 	 
		
      This Agreement is subject to the confidentiality
      provisions provided in clause 9 of the Framework Agreement.

	 	 
	17. 	
      DOMICILIUM AND NOTICES

	 	 
		
      The Parties have provided for domicilium citandi et
      executandi for all purposes of this Agreement in terms of clause 11 of
      the Framework Agreement.

	 	 
	18. 	
      BREACH

	 	 
		
      This Agreement is subject to the breach provisions
      provided in clause 12 of the Framework Agreement.

	 	 
	19. 	
      ARBITRATION

	 	 
		
      Any dispute arising from or in connection with this
      Agreement shall be resolved in accordance with clause 13 of the Framework
      Agreement.

	 	 
	20. 	
      GENERAL

	 	 
		
      This Agreement shall be subject to the general provisions
      provided in clause 14 of the Framework Agreement.

19 

	21. 	
      COSTS

	 	 
		
      Any costs relating to the negotiation, preparation and
      drawing of this Agreement shall be dealt with in terms of clause 15 of the
      Framework Agreement.

20 

Execution 

	Signed at Rosebank on 23 June 2017 
		Net 1 Applied Technologies
      Proprietary Limited 
	  	  
	  	 
             /s/ H.G. Kotzé 
	  	  
	  	         who warrants
      that he/she is duly 
	  	         authorised
      hereto 
	  	  
	  	         Name: H.G.
      Kotzé 
	  	         Capacity:
      Director 

21 

	Signed at Sandton on 23 June 2017 
		         DNI - 4PL
      Contracts Proprietary Limited 
	  	  
	  	 
             /s/ A.J. Dunn 
	  	  
	  	         who warrants
      that he/she is duly 
	  	         authorised
      hereto 
	  	  
	  	         Name: A.J.
      Dunn 
	  	         Capacity: CEO
    

22 

	Signed at Sandton on 23 June 2017 
		         AJD
      Holdings Proprietary Limited 
	  	  
	  	 
             /s/ A.J. Dunn 
	  	  
	  	         who warrants
      that he/she is duly 
	  	         authorised
      hereto 
	  	  
	  	         Name: A.J.
      Dunn 
	  	         Capacity:
      Director 

23 

	Signed at Sandon on 23 June 2017 
		         Richmark
      Holdings Proprietary Limited 
	  	  
	  	 
             /s/ A.J. Dunn 
	  	  
	  	         who warrants
      that he/she is duly 
	  	         authorised
      hereto 
	  	  
	  	         Name: A.J.
      Dunn 
	  	         Capacity: CEO
    

24 

ANNEXURE A - WARRANTIES 

	1. 	
      INTRODUCTION

	 	(a) 	
      Interpretation

Expressions defined in the
subscription agreement to which this is attached as Annexure A
(Agreement) shall bear the same meaning in this Annexure A as that
assigned to them in the Agreement. In addition, the following words and phrases
shall have the meaning attributed to them as follows: 

	 	(i) 	
      Aware - the knowledge, after having made necessary
      and diligent enquiries, of any of the Warrantors and/or any executive
      director or senior manager of any Group Company as disclosed on the DVD,
      being:

	 	(A) 	
      Andrew Dunn;

	 	 	 
	 	(B) 	
      David Smaldon;

	 	 	 
	 	(C) 	
      Graham Bryson

	 	 	 
	 	(D) 	
      Tony Strike

	 	 	 
	 	(E) 	
      Georgina Midgley

	 	 	 
	 	(F) 	
      Andy Payne;

	 	(ii) 	
      Commissioner - the Commissioner for the South
      African Revenue Service (or his successor in title) for purposes of the
      Income Tax Act, including his lawful representative and including any
      other authority entitled to administer any taxes in South
Africa;

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

	 	 	 
	 	(iv) 	
      Income Tax Act - the Income Tax Act, No. 58 of
      1962, as amended;

	 	 	 
	 	(v) 	
      Insolvency Act - the Insolvency Act, No. 24 of
      1936, as amended;

	 	 	 
	 	(vi) 	
      Intellectual Property Rights - in relation to a
      person, any registered or unregistered trademark, patent, design or rights
      of copyright as well as other intellectual property rights (including any
      application in relation to any of the aforegoing) and all rights in any
      trade secrets, know-how or confidential information, used by that person
      in the conduct of its business;

	 	 	 
	 	(vii) 	
      Labour Relations Act - the Labour Relations Act,
      No. 65 of 1995, as amended;

	 	 	 
	 	(viii) 	
      National Credit Act - the National Credit Act, No.
      34 of 2005, as amended;

25 

	 	(ix) 	
      Net Working Capital - means, in respect of the
      Company, the attributable accounts receivable, plus attributable
      cash-on-hand, plus attributable inventory, less the attributable accounts
      payable, as at the Issue Date;

	 	 	 
	 	(x) 	
      Subsidiary - a subsidiary company as defined in
      the Companies Act and subsidiaries shall have a corresponding
    meaning.

	 	(b) 	
      To the extent that the Warranties are given on a date
      which results in the use of any tense being inappropriate, the warranties
      set out below shall be read in the appropriate tense.

	 	 	 
	 	(c) 	
      The Warranties set out below are given by the Warrantors,
      on the basis set out in clause 12, and by the Company.

	 	 	 
	 	(d) 	
      All the Warranties given by the Warrantors in this
      annexure are given subject to the limitations and qualifications set out
      in clauses 12 and 13 of the Agreement (or any other relevant provision of
      the Agreement).

	2. 	
      CAPACITY AND AUTHORITY (which Warranties are being
      given separately and individually)

	 	(a) 	
      Incorporation and
Existence

	 	(i) 	
      The Company is a company duly incorporated and registered
      under South African law and has been in continuous existence since
      incorporation.

	 	 	 
	 	(ii) 	
      Each Group Company is a private company duly incorporated
      and registered under South African law and has been in continuous
      existence since incorporation.

	 	 	 
	 	(iii) 	
      The Company has an authorised share capital as at the
      Signature Date of 1,000 ordinary shares of which 125 ordinary shares are
      issued and held by the Warrantors and Gain in the proportions as set out
      in clause 2.1 of the Framework Agreement.

	 	 	 
	 	(iv) 	
      The Group's corporate structure is as
  follows:

	 	(G) 	
      the Company holds 51% of all of the shares in
      International Tower Company Proprietary Limited;

	 	 	 
	 	(H) 	
      the Company holds 50% of all of the shares in Specpack
      Proprietary Limited;

	 	 	 
	 	(I) 	
      the Company holds 100% of all of the shares in DNI Retail
      Proprietary Limited;

	 	 	 
	 	(J) 	
      the Company holds 51.2% of all of the shares in M4J
      Proprietary Limited, which in turn holds 100% of all of the shares in M4Y
      Proprietary Limited; and

	 	 	 
	 	(K) 	
      100% of all of the shares in DNI 4PL Contracts
      Proprietary Limited are held as follows:

	 	1. 	
      AJD Holdings holds 25 ordinary shares in the Company
      constituting 20% of all of the shares of the Company;

	 	 	 
	 	2. 	
      Gain holds 25 ordinary shares in the Company constituting
      20% of all of the shares of the Company; and

26 

	 	3. 	
      Richmark holds 75 ordinary shares in the Company
      constituting 60% of all of the shares of the
Company.

	 	(v) 	
      Save as provided for above, the Company has no other
      direct or indirect shareholding in another
company.

	 	(b) 	
      Right, Power, Authority and
  Action

	 	(i) 	
      The Company has the right, power and authority to conduct
      its business.

	 	 	 
	 	(ii) 	
      Each Group Company has the right, power and authority to
      conduct the businesses conducted by them.

	 	 	 
	 	(iii) 	
      The Company has the right, power and authority, and has
      taken all action necessary, to execute, deliver and exercise its rights,
      and perform its obligations, under this
Agreement.

	 	(c) 	
      Binding Agreements

	 	(i) 	
      The Company's obligations under this Agreement and each
      document to be executed at or before the Signature Date are, or when the
      relevant document is executed will be, enforceable against the Company in
      accordance with their terms.

	 	 	 
	 	(ii) 	
      The entry into this Agreement by the Company, and the
      performance by it of its obligations under this Agreement, does not, and
      will not:

	 	(A) 	
      as at the Issue Date, result in any present or future
      material indebtedness of any Group Company becoming due or capable of
      being declared due and payable prior to its stated maturity;

	 	 	 
	 	(B) 	
      contravene, conflict with, or result in a violation of,
      any applicable laws; or

	 	 	 
	 	(C) 	
      as at the Issue Date, contravene, conflict with, or
      result in a breach or default of, the terms of, or give any person the
      right to declare a default or exercise any remedy under, or to accelerate
      the maturity or performance of, or to cancel, terminate or modify, any
      agreement, indenture, mortgage or other instrument of any kind to which
      it/he is a party, that has not been waived or consented to in writing by
      that person prior to the Signature Date.

	3. 	
      SHARES

	 	(a) 	
      The Shares

	 	(i) 	
      The Subscription Shares will, upon issue and following
      the Issue Date, confer on Net 1: (i) 45% of the total voting rights
      exercisable in the Company, (ii) 45% of the rights to any and all
      distributions by the Company, and (iii) upon the Company's liquidation,
      45% of the net assets of the Company.

	 	 	 
	 	(ii) 	
      Save as contemplated in the Transaction Agreements or as
      Fairly Disclosed in the Disclosure Schedule, as at the Signature Date and
      the Issue Date, there is no Encumbrance, and there is no agreement,
      arrangement or obligation to create or give an Encumbrance, in relation to
      any shares in the Company (including the allotment and issue of the
      Subscription Shares). As far as the Warrantors and the Company are Aware,
      no person has claimed to be entitled to an Encumbrance in relation to any
      of the shares in the Company.

27 

	 	(iii) 	
      As at the Issue Date, there is no agreement, arrangement
      or obligation requiring the creation, allotment, issue, transfer,
      redemption or repayment of, or the grant to a person of the right
      (conditional or not) to require the allotment, issue, transfer, redemption
      or repayment of, a share in the capital of the Company or any Group
      Company (including, without limitation, an option or right of pre-emption
      or conversion), in terms of which such creation, allotment, issue,
      transfer, redemption or repayment must still occur.

	 	 	 
	 	(iv) 	
      As at the Issue Date, save as contemplated in the
      Proposed Transaction, neither the Company nor any Group Company is and
      will not be under any obligation (whether contingently upon the exercise
      of any right or otherwise), and no resolution shall have been passed,
      requiring the Company or any Group Company to increase or to reduce its
      authorised or issued share capital, or to vary any of the rights attaching
      to any of its shares, or to buyback any of its shares, or to make any
      payment(s) to its shareholder.

	 	 	 
	 	(v) 	
      As at the Issue Date, no person (other than Blue Label or
      Net 1) has any right, actual or contingent, (including, inter alia, any
      option or right of first refusal) to subscribe for any shares or any other
      Securities in the authorised capital of any Group Company.

	 	 	 
	 	(vi) 	
      No person is entitled to participate in, or to a
      commission on the dividends or profits of, any Group Company, except as a
      shareholder.

	 	 	 
	 	(vii) 	
      As at the Issue Date, no Group Company is obliged to
      cancel any of the shares in its capital or to create or issue any
      debentures or any derivatives.

	 	(b) 	
      Securities Register

	 	(i) 	
      The securities register of the Company contains true and
      accurate records of the holders of securities from time to time issued by
      the Company and the Company does not know of any facts or circumstances
      which may give rise to a rectification of the securities register of the
      Company.

	 	 	 
	 	(ii) 	
      No person has any right to obtain an order for the
      rectification of the securities register of any Group
  Company.

	4. 	
      RECEIVABLES

As at the Issue Date:

	 	(a) 	
      the receivables book will be in the name of the Company
      or relevant Group Company;

	 	 	 
	 	(b) 	
      security relating to the receivables book will be
      documented to reflect the terms of the security and all such documents are
      in the possession, or under the control of the Company;

	 	 	 
	 	(c) 	
      the provision by the Company for bad or doubtful debt of
      the Group is adequate;

	 	 	 
	 	(d) 	
      the contracts with customers forming part of the
      receivables book and all documents ancillary thereto will be in the
      possession, and under the control, of the Company; and

	 	 	 
	 	(e) 	
      the receivables book has accurately recorded the
      principle and material terms of these contracts (including the sum
      outstanding and the payment/repayment dates).

28 

	 	(f) 	
      all accounts receivable will be fully recovered save to
      the extent specifically provided against in the Warranted
  Accounts.

	5. 	
      RECORDS

Each Group Company complies in all
material respects with all record keeping requirements imposed by applicable
laws and all such records (including the books, registers, accounts, ledgers and
accounting records) of that Group Company:

	 	(a) 	
      are up-to-date in all material respects;

	 	 	 
	 	(b) 	
      are in its possession or under its control;

	 	 	 
	 	(c) 	
      give and reflect a true and fair view of that Group
      Company concerned and are not misleading in any material way;
and

	 	 	 
	 	(d) 	
      are properly completed on a basis consistent with the
      accounting records of the 3 most recent financial years of the Group
      Company concerned (unless otherwise stated therein) and in accordance with
      the Companies Act, IFRS (to the extent applicable) and the law of, and
      applicable standards, principles and practices generally accepted in South
      Africa.

	6. 	
      FINANCIAL STATEMENTS

	 	(a) 	
      No Undisclosed
Liabilities

	 	(i) 	
      The Group has no liabilities, which would be regarded as
      material by an auditor, of any kind (including, for the avoidance of
      doubt, off statement of financial position liabilities) that would have
      been required to be reflected in, reserved against or otherwise described
      on the Warranted Accounts or in the notes thereto in accordance with IFRS
      and were not so reflected, reserved against or described, other than (i)
      liabilities incurred in the Ordinary Course of Business after the Issue
      Date, and (ii) liabilities incurred in connection with the transactions
      contemplated hereby, other than as reflected and Fairly Disclosed in the
      Warranted Accounts.

	 	 	 
	 	(ii) 	
      No shareholder of the Company or any Related Person to
      any such person has any claims against any Group Company whether on loan
      account, current account or otherwise.

	 	 	 
	 	(iii) 	
      The Group has paid its creditors which would be regarded
      as material creditors by an auditor, within the time limits agreed with
      such creditors save where a creditor’s claim is disputed or as may be
      otherwise indicated and Fairly Disclosed in the Warranted
  Accounts.

	 	 	 
	 	(iv) 	
      No report has been furnished to any Group Company by its
      auditor concerning a material irregularity as contemplated in the Auditing
      Professions Act No. 26 of 2005 (as amended), or any similar predecessor
      section, or any analogous legislation in a relevant
jurisdiction.

	 	 	 
	 	(v) 	
      Between the Signature Date and the Issue Date, the
      Group's Business will be operated in the usual way so as to maintain it as
      a going concern.

	 	 	 
	 	(vi) 	
      The Audited Accounts –

	 	(A) 	
      comply with the requirements of the Companies
  Act;

29 

	 	(B) 	
      have been prepared in accordance with IFRS for
    SMEs;

	 	 	 
	 	(C) 	
      fairly present the financial position, operations and
      results of the Group as at the close of business at the end of the
      financial period to which they relate;

	 	 	 
	 	(D) 	
      save as noted therein, reflect no change in any of the
      bases of accounting or accounting principles used in respect of any
      material item;

	 	 	 
	 	(E) 	
      reflect or disclose all liabilities, actual or
      contingent, at their full amount;

	 	 	 
	 	(F) 	
      adequately provide for bad and doubtful debts as well as
      for any and all accrued liabilities including accrued leave pay, accrued
      holiday pay, pensions, bonuses or other similar payments or liabilities to
      employees;

	 	 	 
	 	(G) 	
      have been reported on by the auditors of the Group
      without any qualification other than in respect of post-balance sheet
      events; and

	 	 	 
	 	(H) 	
      have been approved and signed by the directors of the
      Company.

	 	(vii) 	
      All provisions contained or brought to account are
      adequate and sufficient in respect of the matters to which they relate,
      including but not limited to foreign exchange commitments.

	 	 	 
	 	(viii) 	
      As at the Signature Date, the financial year end of the
      Company is February. Notwithstanding the aforegoing, as soon as reasonably
      possible after the Signature Date, the financial year end of the Company
      will be changed to June.

	 	 	 
	 	(ix) 	
      The Signature Date Accounts–

	 	(A) 	
      fairly present the financial position, operations and
      results of the Group as at the close of business at the end of the
      financial period to which they relate;

	 	 	 
	 	(B) 	
      save as noted therein, reflect no change in any of the
      bases of accounting or accounting principles used in the preparation of
      the Audited Accounts and have been prepared consistent with past
      practice;

	 	 	 
	 	(C) 	
      reflect or disclose all liabilities, actual or
      contingent, at their full amount; and

	 	 	 
	 	(D) 	
      adequately provide for bad and doubtful debts as well as
      for any and all accrued liabilities including accrued leave pay, accrued
      holiday pay, pensions, bonuses or other similar payments or liabilities to
      employees.

	 	(b) 	
      Minute Books

As at the Signature Date and the Issue
Date, the minute book of each Group Company contains all material resolutions
passed by the directors and members thereof, save for resolutions required to
give effect to the provisions of this Agreement. 

30 

	 	(c) 	
      Specific

Since 1 March 2017: 

	 	(i) 	
      no Group Company has, other than in the ordinary course
      of its business:

	 	(A) 	
      acquired or disposed of, or agreed to acquire or dispose
      of, an asset which an auditor would regard as material; or

	 	 	 
	 	(B) 	
      assumed or incurred, or agreed to assume or incur, a
      liability, obligation or expense (actual or contingent) that an auditor
      would regard as material;

	 	(ii) 	
      the Group’s business has not been materially and
      adversely affected by the termination of, or a change in the terms of, any
      licence, an agreement or by the loss of a customer or supplier or by an
      abnormal factor not affecting similar businesses;

	 	 	 
	 	(iii) 	
      the Company has not declared, paid or made a dividend or
      distribution (including, without limitation, a distribution within the
      meaning of the Income Tax Act), except as provided for in the Audited
      Accounts;

	 	 	 
	 	(iv) 	
      no Group Company has changed its financial year end or
      its auditors.

	7. 	
      NET WORKING CAPITAL

The Net Working Capital will be
sufficient to conduct the Business in the Ordinary Course of Business.

	8. 	
      TAX

	 	(a) 	
      Each Group Company shall at all times have complied in
      all material respects with the provisions of the Income Tax Act, the
      Value-added Tax Act, No. 89 of 1991 (VAT Act) and all Tax returns
      (including without limitation employees’ tax returns and specifically
      including all returns and information that relate to reportable
      arrangements as contemplated in Part B of Chapter 4 (sections 34 to 39 of
      the Tax Administration Act, No. 28 of 2011 or sections 80M to 80T of the
      Income Tax Act) and declarations required to be returned shall have been
      made by it in respect of the 4 financial years immediately preceding the
      Issue Date and shall have accurately disclosed all information properly
      required to be disclosed to the Commissioner or other appropriate
      authorities, and all provisional and other Taxes shall have been paid as
      at the due date thereof in material compliance with the provisions of the
      Income Tax Act.

	 	(b) 	
      Each Group Company has paid and discharged when due, all
      Taxes payable by it from the date of its incorporation to the Issue Date,
      including any Tax in respect of:

	 	(i) 	
      its assets, income or profits;

	 	 	 
	 	(ii) 	
      any transactions concluded by the Group Company
      concerned;

	 	 	 
	 	(iii) 	
      the declaration and payment of dividends and/or deemed
      dividends by the Group Company concerned.

	 	(c) 	
      All assessments for Tax raised in respect of the Group
      where the due date for payment of the Tax arises on or before the Issue
      Date or which relate to the period prior to the Issue Date or as otherwise
      provided in the Signature Date Accounts shall have been paid in full by
      the Issue Date, unless disputed by the Company in good
  faith.

31 

	 	(d) 	
      In respect of any Tax of the Group which is due for
      payment after the Issue Date, adequate provision therefor shall have been
      made in the financial statements of the relevant Group Company;

	 	 	 
	 	(e) 	
      Final assessments have been issued for all Tax periods in
      respect of which the Group Company has submitted Tax returns and no
      Warrantor is aware of any intention by the Commissioner to re-open any
      such assessment.

	 	 	 
	 	(f) 	
      As far as the Company is Aware, no Group Company is
      liable to pay any penalty, late payment penalty, administrative
      non-compliance penalty, understatement penalty, fine or interest in
      connection with any Tax.

	 	 	 
	 	(g) 	
      As far as the Company is Aware, no Group Company is party
      to any transactions in respect of which the Tax authority may lawfully
      substitute, for purposes of Tax, a different consideration for the actual
      consideration given or received by the Group.

	 	 	 
	 	(h) 	
      The wear and tear, depreciation or capital allowances
      applied in the past to the Group’s fixed or other assets for Tax purposes
      shall conform in all material respects to, and shall not exceed, those
      permitted in terms of the Income Tax Act.

	 	 	 
	 	(i) 	
      All financing costs incurred to date (including any
      interest or similar expenses) in relation to any financing entered into by
      the Group before Closing have been and will be deductible on an accruals
      basis.

	 	 	 
	 	(j) 	
      As far as the Company is Aware, no facts or circumstances
      exist which could cause a revenue authority to disallow any existing
      assessable/accumulated tax losses or the carrying forward of such
      losses.

	 	 	 
	 	(k) 	
      The current and deferred Tax provisions and/or assets
      that will be included in the Audited Accounts have been properly provided
      for in accordance with the IFRS.

	 	 	 
	 	(l) 	
      Where required, a Group Company has duly registered as a
      VAT vendor in terms of the VAT Act, has complied in all material respects
      with all statutory provisions and regulations relating to VAT and has duly
      paid or provided for all amounts of VAT which have become due and payable
      or for which that Group Company is liable; and is not operating any
      special arrangement or scheme relating to VAT nor has it agreed any
      special method of accounting for VAT.

	 	 	 
	 	(m) 	
      Except as otherwise Fairly Disclosed in the Disclosure
      Schedule, no Group Company has, at any time since the date of its
      incorporation:

	 	(iv) 	
      entered into any transaction as contemplated in sections
      41 to 47 of the Income Tax Act;

	 	 	 
	 	(v) 	
      issued any "hybrid equity instrument", as contemplated in
      section 8E of the Income Tax Act, or any "third-party backed share", as
      contemplated in section 8EA of the Income Tax Act;

	 	 	 
	 	(vi) 	
      issued any "hybrid debt instrument" as contemplated in
      section 8F of the Income Tax Act;

	 	 	 
	 	(vii) 	
      incurred "hybrid interest" as contemplated in section 8FA
      of the Income Tax Act.

	 	(n) 	
      The Company is:

	 	(i) 	
      a resident for South African Tax purposes and has not
      ceased such residence since the date of its incorporation;
  and

32 

	 	(ii) 	
      is not treated as resident or liable to Tax in any other
      jurisdiction for any Tax purpose (including for the purposes of any double
      taxation agreement); and

	 	 	 
	 	(iii) 	
      not subject to the interest-limitation provisions
      contained in sections 23M or 23N of the Income Tax
Act.

	 	(o) 	
      The Company shall not at any time or times have been
      party to any ‘company formation transaction’, ‘share-for-share
      transaction’, ‘amalgamation transaction’, ‘intra-group transaction’,
      ‘unbundling transaction’ or ‘liquidation, winding-up or deregistration
      transaction’ all as contemplated in Part III of the Income Tax Act, or any
      other transaction which might be so classified.

	 	 	 
	 	(p) 	
      As at the Signature Date, there are no material queries,
      notices, suits, proceedings, investigations or inspections pending against
      any Group Company by the Commissioner or any Tax authority relating to any
      claim for any additional Tax or assessment, or any material matters under
      discussion with the Commissioner or any Tax authority relating to any
      claim for any Tax or assessment, nor is there any pending Tax objection or
      appeal by any Group Company.

	 	 	 
	 	(q) 	
      As far as the Warrantors are Aware, the Tax files and
      records of the Group contain complete, full and accurate details in all
      material respects of all communications with the Commissioner and Tax
      advisors, respectively, for the 3 (three) year period prior to the Issue
      Date.

	 	 	 
	 	(r) 	
      As far as the Warrantors are Aware, to the extent that
      any Group Company claimed Tax allowances or deductions prior to the Issue
      Date (including, without limitation, in respect of leasehold improvements)
      it was, insofar as it was Aware, entitled to do so in accordance with the
      provisions of the Income Tax Act.

	9. 	
      BUSINESS OF THE
COMPANY

	 	(a) 	
      The sole business of the Company is the Business which
      the Company conducts as a going concern solely in South Africa.

	 	 	 
	 	(b) 	
      No Group Company is bound by any restraint of trade
      agreement and no Group Company has committed (whether actually or
      contingently) to entering into any restraint of trade agreement by which
      it may be so bound.

	 	 	 
	 	(c) 	
      The Warrantors are not Aware of anything, which will
      prevent the Company from carrying on the Business nor any Group Company
      carrying on its business.

	10. 	
      ASSETS

	 	(a) 	
      Title and Condition

	 	(i) 	
      Each asset included in the Signature Date Accounts or
      acquired by the Group since the Signature Date Accounts (other than stock
      disposed of in the Ordinary Course of Business or leased assets)
  is:

	 	(A) 	
      legally and beneficially owned solely by the Group;
      and

	 	 	 
	 	(B) 	
      where capable of possession, in the possession or under
      the control of the Group.

	 	(ii) 	
      Unless otherwise Fairly Disclosed in Annexure B, all the
      material assets of the Group included in the Signature Date Accounts or
      acquired by the Group since the Audited Accounts, whether movable,
      immovable, fixed or of whatever nature or description will be owned by the Group in
full, free and unencumbered ownership, and none of them will be subject to: 

33 

	 	(A) 	
      any credit agreement, credit transaction, instalment sale
      transaction or leasing transaction;

	 	 	 
	 	(B) 	
      any other credit agreement, instalment sale agreement,
      hire-purchase or suspensive sale agreement, lease or any like agreement
      whatever its form, save for motor vehicle leases in the Ordinary Course of
      Business;

	 	 	 
	 	(C) 	
      any pledge, mortgage bond, lien or notarial
  bond;

	 	 	 
	 	(D) 	
      any other right in favour of any third person;
  or

	 	 	 
	 	(E) 	
      any arrangement for the payment of a premium or like
      consideration to or by the Group for the use of the asset
  concerned.

	 	(iii) 	
      As far as the Warrantors are Aware, no Person has or will
      have any right (including any option or right of first refusal) to acquire
      or claim delivery, ownership or transfer or the use, occupation,
      possession or enjoyment of, any of the assets of any Group Company, other
      than in the ordinary course of its business.

	 	 	 
	 	(iv) 	
      There has been no exercise, purported exercise or claim
      for any Encumbrance over any of the assets of any Group Company, and there
      is no dispute directly or indirectly relating to any such
assets.

	 	 	 
	 	(v) 	
      Each Group Company has the legal capacity and power to
      own its assets and carry on its business as it is presently being
      conducted.

	 	 	 
	 	(vi) 	
      No Group Company has stopped or suspended payment of a
      material portion of its debts, or otherwise become unable to pay its debts
      or otherwise become insolvent in any relevant
  jurisdiction.

	11. 	
      INTELLECTUAL PROPERTY

	 	(a) 	
      Each of the Intellectual Property Rights owned or
      licensed by the Group and material to the conduct of the Business
    is:

	 	(i) 	
      valid and enforceable and nothing has been done or
      omitted to be done by any Group Company by which it may cease to be valid
      and enforceable;

	 	 	 
	 	(ii) 	
      legally and beneficially owned by the Group alone, or
      legally licensed by the Group; and

	 	 	 
	 	(iii) 	
      as far as the Warrantors are Aware, not the subject of a
      claim or opposition from a person (including, without limitation, an
      employee of the Group) as to title, validity, enforceability, entitlement
      or otherwise.

	 	(b) 	
      As far as the Warrantors are Aware, no Group Company has
      infringed any third party’s Intellectual Property Rights or rendered any
      Group Company liable to an action in respect of the infringement of any
      Intellectual Property Rights belonging to a third party, provided that the
      aforesaid Warranty does not apply to instances where any infringement
      occurs or may have occurred as a result of any Intellectual Property
      Rights not having been licensed to the Company validly by a licensor
      purporting to do so. There is and during the 2 years ending on the
      Signature Date has been, no civil, criminal, arbitration, administrative
      or other proceeding or dispute in any jurisdiction by or against any Group Company concerning any of the
      Intellectual Property Rights. The Warrantors are not Aware of any civil,
      criminal, arbitration, administrative or other proceeding or dispute
      concerning any of the Intellectual Property Rights being pending or
  threatened against it or any Group Company.

34 

	 	(c) 	
      The Group is entitled to use the Intellectual Property
      Rights and prohibiting its use of any Intellectual Property Rights and
      computer systems or other similar property licensed to the Group and used
      by the Company at present in connection with or for the Business
      operations of the Group.

	12. 	
      INSURANCE

	 	(a) 	
      Status of the Policies

	 	(i) 	
      As far as the Warrantors are Aware, each of the current
      insurance and indemnity policies in respect of which the Group has an
      interest (including any active historic policies which provide cover on a
      losses occurring basis) (Policies) is valid and
  enforceable.

	 	 	 
	 	(ii) 	
      As far as the Warrantors are Aware, no Group Company has
      done or omitted to do anything which:

	 	(A) 	
      makes any of the Policies unenforceable; or

	 	 	 
	 	(B) 	
      prejudices the ability to effect insurance on the same or
      better terms in the future.

	 	(iii) 	
      No insurer under any of the Policies has disputed, or
      given any indication that they intend to dispute, the validity of any of
      the Policies on any grounds.

	 	(b) 	
      Insurance of Assets

	 	(i) 	
      All Policies are and remain in full force and
    effect.

	 	 	 
	 	(ii) 	
      All Policies are adequate in respect of the assets to
      which such Policies relate.

	(c) 	
      Claims

As far as the Warrantors are Aware:

	 	(i) 	
      no material claims have been made under any Policy (other
      than claims made in the Ordinary Course of Business);

	 	 	 
	 	(ii) 	
      no claim is outstanding;

	 	 	 
	 	(iii) 	
      there exists no fact or circumstance which will give rise
      to a material claim under any of the Policies;

	 	 	 
	 	(iv) 	
      no event, act or omission has occurred which requires
      notification under any of the Policies the failure of which would have a
      material adverse effect on the Business of the Company;

	 	 	 
	 	(v) 	
      no insurer under any of the Policies has refused, or
      given any indication to the Company that it intends to refuse, indemnity
      in whole or in part in the Ordinary Course of Business in respect of any
      material claims under the Policies; and

35 

	 	(vi) 	
      nothing has been done or omitted to be done by the Group,
      which will entitle the insurers under any of the Policies to refuse
      indemnity in whole or in part in respect of any material claims under the
      Policies.

	 	(d) 	
      Premiums

	 	(i) 	
      All premiums which are due under the Policies have been
      paid.

	 	 	 
	 	(ii) 	
      The Warrantors are not Aware that the Company has done
      anything or omitted to do anything (other than to submit claims in the
      Ordinary Course of Business of the Company) which will result in a
      material increase in the premium payable under any of the Policies
      (excluding annual increases of premiums in the ordinary
  course).

	13. 	
      PROPERTY

	 	(a) 	
      Immovable Property

The Group owns no immovable property.

	 	(b) 	
      Leasehold Property used by the
  Group

	 	(i) 	
      The warranties in paragraphs 13(b)(ii) to 13(b)(vii)
      (inclusive) are given only to the extent that a breach thereof would have
      a material adverse financial effect on the Group as a whole.

	 	 	 
	 	(ii) 	
      No person (including, without limitation, the landlord)
      may bring the term of any lease agreement to which any Group Company is a
      party as a lessee to an end before the expiry of the term of the relevant
      lease agreement by effluxion of time (except by forfeiture).

	 	 	 
	 	(iii) 	
      As far as the Warrantors are Aware, there is no fact or
      circumstance which will restrict or terminate the Group's continued and
      uninterrupted possession or occupation of any of its premises, where such
      restriction or termination will have a material adverse effect on the
      Business.

	 	 	 
	 	(iv) 	
      The Group has the right to conduct the Business from the
      premises from which it trades in the ordinary course thereof.

	 	 	 
	 	(v) 	
      No Group Company has any obligation to alter, renovate or
      improve the premises from which it trades, save as otherwise provided in
      any lease agreement and in such an event such obligation will not have a
      material adverse effect on the Business.

	 	 	 
	 	(vi) 	
      Rent payable in respect of the Group’s premises is not
      being reviewed and cannot be reviewed before the Issue Date, save for
      reviews in the ordinary course as provided for in the relevant lease
      agreements.

	 	 	 
	 	(vii) 	
      No Group Company is in breach of any lease agreement to
      which it is a party.

	14. 	
      AGREEMENTS

	 	(a) 	
      Validity of Agreements

	 	(i) 	
      As at the Issue Date, the Warrantors are not Aware, of
      the existence of any fact or circumstance which will invalidate or give
      rise to a ground for termination, avoidance or repudiation of an agreement
      or arrangement to which any Group Company is a party which would have a
      material adverse effect on the Business. As far as the Warrantors are
      Aware,, no party with whom any Group Company has entered into a material
      agreement or arrangement has given notice of its intention to terminate,
      or has sought to repudiate or disclaim, the agreement or
  arrangement.

36 

	 	(ii) 	
      No Group Company is in breach of any agreement,
      arrangement or obligation entered into by any Group Company and which is
      material to the business of the Group;

	 	 	 
	 	(iii) 	
      As far as the Warrantors are
Aware:

	 	(A) 	
      no party with whom any Group Company has entered into an
      agreement, arrangement or obligations which is material to the business of
      the Group is in breach of the agreement, arrangement or obligation;
    and

	 	 	 
	 	(B) 	
      there exists no fact or circumstance which will give rise
      to a breach of this type which would have a material adverse effect on the
      Business.

	 	(iv) 	
      No Group Company is party to any agreement of a material
      nature which has not been entered into: (i) on an arms'-length basis; and
      (ii) on terms which are normal having regard to the nature of its
      business.

	 	(b) 	
      Effect of Transaction

As far as the Warrantors are Aware:

	 	(i) 	
      the execution or the performance of this Agreement will
      not result in any Group Company losing the benefit of a material asset,
      grant, subsidy, right or privilege which it enjoys at the Signature Date
      which would have a material adverse effect on the Business.

	 	 	 
	 	(ii) 	
      neither the execution nor the performance of this
      Agreement will conflict with, result in a breach of, give rise to an event
      of default under, require the consent of a person under, enable a person
      to terminate, or relieve a person from an obligation under any material
      agreement or arrangement to which any Group Company is a party which would
      have a material adverse effect on the Business of the
  Company.

	15. 	
      EMPLOYEES

	 	(a) 	
      General

	 	(i) 	
      Save as specifically disclosed in Annexure B, the Group
      owes no amount to a present or former director, other officer or employee
      of the Group (or his dependant) other than (i) for accrued remuneration or
      reimbursement of business expenses in the Ordinary Course of Business; and
      (ii) as disclosed in the Disclosure Schedule.

	 	 	 
	 	(ii) 	
      There is no agreement or arrangement between any Group
      Company and an employee or former employee with respect to his employment,
      his ceasing to be employed or his retirement which is not included in the
      written terms of his employment or previous employment. The Group has not
      provided, nor agreed to provide, a gratuitous payment or benefit to a
      director, officer or employee or to any of their dependants.

	 	 	 
	 	(iii) 	
      The Group has maintained in all material respects
      up-to-date, full and accurate records regarding the employment of each of
      its employees (including, without limitation, details of terms of
      employment, payments of statutory sick pay and statutory maternity pay,
      income tax and social security contributions, disciplinary and health and
  safety matters) and termination of employment.

37 

	 	(iv) 	
      No executive employee of any Group Company, being an
      employee of the Group and with annual cost to company in excess of
      R1,000,000 (Employee), is entitled to any exceptional benefits in
      relation to leave privileges, accumulated leave in excess of 30 days,
      pension or the like, other than provided for by the documented policies of
      the Group as at the Signature Date.

	 	 	 
	 	(v) 	
      Save for market-related annual wage and salary increases
      and salary increases attributable to Employee promotions in the Ordinary
      Course of Business, between the Signature Date and the Issue Date, no
      Group Company has in any way improved or undertaken to improve the terms
      of service of any of the Employees from those which prevailed at the
      Signature Date.

	 	(b) 	
      Payments to employees and consultants/independent
      contractors

As far as the Warrantors are Aware:

	 	(i) 	
      no material liability has been incurred by the Group, or
      may be incurred between the Signature Date and the Issue
  Date:

	 	(A) 	
      for breach of any contract of employment with any of its
      employees, or termination of an employment contract with any of its
      employees, including, without limitation, a severance (whether voluntary
      or otherwise) payment, protective award and/or compensation for wrongful,
      unlawful dismissal, unfair dismissal, unfair labour practice, unfair
      discrimination or any other form of compensation for sex, race or
      disability discrimination, reinstatement or re-employment and/or failure
      to comply with an order for the reinstatement or re- employment of an
      employee or former employee; or

	 	 	 
	 	(B) 	
      whether arising in contract, statute, delict or
      otherwise, for breach or termination of a consultancy agreement;
  or

	 	(ii) 	
      the Group has not made or agreed to make a material
      payment or provided or agreed to provide a material benefit to a present
      or former director, other officer or employee of the Group or to any of
      their dependants in connection with the actual or proposed termination or
      suspension of employment or variation of an employment
  contract.

	 	(c) 	
      Compliance with Law and
Disputes

	 	(i) 	
      As far as the Warrantors are Aware, there are no material
      claims or threatened material claims and/or investigations against the
      Group relating to:

	 	(A) 	
      the refusal by the Group to employ any person;

	 	 	 
	 	(B) 	
      the employment by the Group of any person the terms and
      conditions of the employment relationship between them and/or the
      termination of such employment; or

	 	 	 
	 	(C) 	
      any workplace related accident, injury, disease or
      illness suffered by any employee or former employee of the
  Group.

38 

	 	(ii) 	
      Save in respect of those disputes Fairly Disclosed in the
      Disclosure Schedule, no Group Company is a party to any dispute (with a
      maximum claim against it exceeding ZAR 1,000,000) with any employee before
      any court or tribunal, whether under the Labour Relations Act, the Basic
      Conditions of Employment Act No. 75 of 1997 (as amended), the Employment
      Equity Act 55 of 1998, the Occupational Health and Safety Act 85 of 1983,
      the Compensation for Occupational Injuries and Diseases Act 130 of 1993,
      the Skills Development Act 97 of 1998, the Skills Development Levies Act 9
      of 1999, the common law or otherwise, and the Company is not Aware of any
      facts or circumstances that may afford grounds or give rise to any such
      dispute.

	 	 	 
	 	(iii) 	
      The Warrantors warrant that all statutory levies and
      contributions due in respect of any employee of the Group has been paid in
      all material respects and that it has no material undischarged liability
      to any government, regulatory authority or similar authority or any other
      person in respect of employees engaged in the
Business.

	 	(d) 	
      Trade Unions

	 	 	 
	 		
      The Group is not involved in, and is not Aware of a fact
      or circumstance, or demand from any employee, trade union or association
      of employees for any alterations to the terms of their employment
      including demands for increased remuneration which will give rise to, a
      dispute of any nature whatsoever with a trade union, works council,
      workplace forum, employee or staff association or other body representing
      any of its employees.

	16. 	
      LICENCES AND PERMITS

	 	(a) 	
      Each Group Company is in possession of all material
      approvals, consents, licences, permits and other authorities as are
      prescribed by applicable law for the lawful conduct of the business/es
      carried on by it, and, as far as the Warrantors are Aware, all such
      consents and licences are valid and subsisting and will not terminate or
      be terminable at the election of any person by virtue of the execution or
      implementation of this Agreement.

	 	 	 
	 	(b) 	
      No Group Company is in breach of any of the terms or
      conditions of any such approvals, consents, licences, permits or other
      authorities which may lead to the termination of any licences critical to
      the operation of the Group.

	 	 	 
	 	(c) 	
      As far as the Warrantors are
Aware:

	 	(i) 	
      there are no circumstances, facts or matters that may
      give rise to all of the above approvals, consents, licences, permits and
      other authorities being cancelled or not being renewed in the future or
      only being renewed subject to the imposition of onerous terms.

	 	 	 
	 	(ii) 	
      there are no outstanding requirements of any relevant
      authorities with which the Group is required to comply or has been called
      upon to comply before it may lawfully carry on or continue its Business
      generally, and the Warrantors' are not Aware of any contravention or
      breach by the Group of any such material requirements; and

	 	 	 
	 	(iii) 	
      there exists no fact or circumstance which will or may
      prejudice the renewal of any authorisation or licence required by the
      Group to conduct its Business generally.

39 

	 	(d) 	
      Each action required by the Group for the renewal or
      extension of each licence or permit to be issued by relevant authorities
      in order to enable the Group lawfully to carry on or continue its Business
      generally, has, as far as the Warrantors' are aware, been
  taken.

	17. 	
      INSOLVENCY AND WINDING UP

	 	 
		
      No Group Company has taken any action, nor have any
      proceedings been served on or notified to any Group Company to commence
      business rescue proceedings in respect of any Group Company or for its
      winding up or dissolution or for the appointment of a liquidator, business
      rescue practitioner, curator or similar officer. As far as the Warrantors
      are Aware no execution or other similar process which has been commenced
      or undertaken or threatened in respect of the assets of the Group or in
      respect of any Group Company, nor are the Warrantors Aware of any
      unfulfilled or unsatisfied judgment or court order which is outstanding
      against the Company. No Group Company shall enter into any arrangement or
      composition for the benefit of creditors
generally.

	 	(a) 	
      Payment of Debts and Acts of Insolvency

	 	 	 
	 		
      The Group is not unable to pay its debts as they fall
      due, nor has the Group commenced negotiations with one or more of its
      creditors with a view to rescheduling or restructuring any of its
      indebtedness. No Group Company has committed an act of insolvency as
      defined in the Insolvency Act, which will have an impact on the Company’s
      or Group's ability to continue its business as a going concern.

	 	 	 
	 	(b) 	
      Removal from Register

	 	 	 
	 		
      As far as the Warrantors are Aware, no steps are pending
      or threatened against any Group Company for its deregistration in terms of
      section 82 of the Companies Act.

	18. 	
      LITIGATION AND COMPLIANCE WITH
  LAW

	 	(a) 	
      Litigation

	 	(iv) 	
      Except as otherwise Fairly Disclosed in the Disclosure
      Schedule in Annexure B:

	 	(A) 	
      the Group is not involved, as at the Signature Date and
      as far as the Warrantors are Aware, will not be involved as at the Issue
      Date, in a civil, criminal, arbitration, administrative or other
      proceeding, which has, or will have, a material adverse effect on the
      Business;

	 	 	 
	 	(B) 	
      no civil, criminal, arbitration, administrative or other
      proceeding is pending or threatened by or against the Group or any of its
      directors or officers, which will have a material adverse effect on the
      Business;

	 	 	 
	 	(C) 	
      as far as the Warrantors are Aware, no person for whose
      acts or defaults the Group may be vicariously liable is involved, or has
      during the 2 years prior to the Signature Date been involved, in a civil,
      criminal, arbitration, administrative or other proceeding;

	 	 	 
	 	(D) 	
      as far as the Warrantors are Aware, no civil, criminal,
      arbitration, administrative or other proceeding pending or threatened by
      or against a person for whose acts or defaults the Group may be
      vicariously liable.

	 	(v) 	
      As far as the Warrantors are Aware, there is no material
      outstanding judgment, order, decree, arbitral award or decision of a
      court, tribunal, arbitrator or governmental agency against any Group Company and the
Warrantors are not aware of any outstanding judgment, order, decree, arbitral
award or decision of a court, tribunal, arbitrator or governmental agency
against a person for whose acts or defaults any Group Company may be vicariously
liable. 

40 

	 	(b) 	
      Compliance with Law

	 	 	 
	 		
      The Group has complied in all material respects with all
      laws and administrative requirements governing its assets and Business
      where the failure to do so would have a material adverse effect on its
      Business, and to the extent that the Group has contravened any such laws,
      administrative requirements or regulations in the past, those
      contraventions have been remedied in full and the Group has paid all
      penalties or fines imposed for those contraventions, or has provided
      therefor in the Warranted Accounts.

	 	 	 
	 	(c) 	
      Investigations of a Material Nature

	 	 	 
	 		
      All action formally requested by any regulatory authority
      has been taken (save where it has been agreed with any regulatory
      authority that no action need be taken) within any time limit specified
      and any request for action or activities to be discontinued has been
      complied with in a timely manner where failure would have a material
      adverse effect on the Business of the Company.

	 	 	 
	 	(d) 	
      Unlawful Payments

	 	 	 
	 		
      The Group has not, nor are the Warrantors Aware, that any
      person for whose acts or defaults the Group may be vicariously liable
      has:

	 	(i) 	
      induced a person to enter into an agreement or
      arrangement with the Group by means of an unlawful payment, contribution,
      gift or other inducement;

	 	 	 
	 	(ii) 	
      offered or made an unlawful payment, contribution, gift
      or other inducement to a government official or employee; or

	 	 	 
	 	(iii) 	
      made an unlawful contribution to a political
    activity.

	19. 	
      CONSTITUTION, REGISTERS AND
  RETURNS

	 	(a) 	
      Constitution

	 	 	 
	 		
      The Group is operating and has always operated its
      business in all material respects in accordance with its Memoranda of
      Incorporation at the relevant time.

	 	 	 
	 	(b) 	
      Returns

	 	 	 
	 		
      All material returns, particulars, resolutions and other
      documents required to be delivered by the Group to the Companies and
      Intellectual Property Commission or another governmental or other
      authority or agency have been properly prepared and
  delivered.

	20. 	
      MONEY LAUNDERING

	 	 
		
      Each Group Company has in all material respects complied
      with any know your customer and money laundering reporting laws and all
      laws for detecting and identifying money laundering, and detecting,
      identifying and reporting suspicions of money laundering to the
      appropriate regulators, in force in South Africa at the relevant
    time.

41 

	21. 	
      ANTI-CORRUPTION LAWS

	 	(a) 	
      For the purposes of the Warranties given hereunder
    –

	 	(i) 	
      "Anti-Corruption Laws" means any anti-corruption
      or bribery laws or regulations of any applicable jurisdiction, as amended
      from time to time, including –

	 	(A) 	
      the Prevention and Combating of Corrupt Activities Act,
      No 12 of 2004;

	 	 	 
	 	(B) 	
      the UK Bribery Act 2010;

	 	 	 
	 	(C) 	
      the U.S. Foreign Corrupt Practices Act 1977;

	 	 	 
	 	(D) 	
      any law, rule, or regulation promulgated to implement the
      OECD Convention on Combating Bribery of Foreign Public Officials in
      International Business Transactions, signed on 17 December 1997;
  and

	 	 	 
	 	(E) 	
      any other law of similar purpose and scope in any
      jurisdiction;

	 	(ii) 	
      "Associate" means, in relation to an organisation,
      a person (including an employee, agent or subsidiary) who performs or has
      performed services (including within the meaning of section 8 of the UK
      Bribery Act 2010) for that organisation or on its behalf and in respect of
      whose actions or inactions the organisation may be liable under
      Anti-Corruption Laws;

	 	 	 
	 	(iii) 	
      "Designated Party" means any person or
      organisation –

	 	(A) 	
      whose name is specified in any list issued pursuant to
      any resolution or legislation of the United Nations, South Africa, the
      United Kingdom or the United States relating to the designation of a
      person or organisation as a terrorist or terrorist organisation or
      blocking any assets of such person or organisation; or

	 	 	 
	 	(B) 	
      in respect of whom a Party to this Agreement has received
      notice that all financial transactions involving the assets of such person
      have been, or are to be, blocked under legal authority; or

	 	 	 
	 	(C) 	
      who is or was convicted, found guilty or against whom a
      judgment or order was entered in a court of competent jurisdiction in any
      proceedings for violating bribery, money laundering or terrorist financing
      laws;

	 	(iv) 	
      "Government Authority" means any government (or
      any subdivision thereof, whether federal, central, regional or local) of
      any country or jurisdiction or any agency, authority, board, bureau,
      commission, department, judicial or administrative body, regulatory
      authority, public enterprise or similar body or any court or tribunal or
      public international organisation; and

	 	(v) 	
      "Government Official" means
–

	 	(A) 	
      any official, officer, employee, director, principal,
      consultant, agent or representative of any government, ministry, body,
      department, agency, instrumentality or part thereof, or of any public
      international organisation (including the United Nations, the
      International Monetary Fund, the International Finance Corporation and the
      World Bank), any state-owned or state-controlled entity, agency
  or enterprise, or of any political party;

42 

	 	(B) 	
      any person acting in an official capacity or exercising a
      public function for and on behalf of any of the foregoing;

	 	 	 
	 	(C) 	
      any candidate for political office; and

	 	 	 
	 	(D) 	
      where the UK Bribery Act 2010 applies, includes foreign
      public officials as defined in sections 6(5) and 6(6) of the UK Bribery
      Act 2010.

	 	(vi) 	
      The Warrantors and the Company acknowledge that failure
      to comply with applicable Anti-Corruption Laws could cause Net 1 and its
      affiliates to be in violation of such Anti-Corruption
  Laws.

	 	(b) 	
      Neither the Company nor any of its or its Associates'
      directors, officers, employees, agents or representatives have, in each
      case in connection with the business of the Company
–

	 	(i) 	
      breached or contravened any Anti-Corruption Laws or any
      applicable anti- money laundering law, rule or regulation; or

	 	 	 
	 	(ii) 	
      been the subject of any investigation, inquiry, claim or
      enforcement proceedings by any Government Authority or any other
      regulatory authority or enforcement agency or any customer regarding any
      offence or alleged offence under any applicable Anti-Corruption Laws, and
      no such investigation, inquiry or proceedings have been threatened or are
      pending in connection with the business of the Company and there are no
      matters, facts or circumstances likely to give rise to any such
      investigation, inquiry or proceedings.

	 	(c) 	
      No bribe or other corrupt payment has ever been made by
      Company or any of its or its Associates' directors, officers, employees,
      agents or representatives to any Government Official or any other person
      during the course of the conduct of the business of the Company.

	 	 	 
	 	(d) 	
      Books and records were made and kept which accurately and
      fairly reflect the transactions and dispositions of the assets of the
      Company.

	 	 	 
	 	(e) 	
      Internal accounting controls have been established,
      maintained and followed by the Company that are and were sufficient to
      provide reasonable assurance that transactions were executed in accordance
      with management’s general or specific authorisation and were recorded in
      accordance with generally accepted accounting practice.

	 	 	 
	 	(f) 	
      The Company has, in respect of any Anti-Corruption Laws,
      put in place adequate procedures designed to prevent persons associated
      with the Company (including its or its Associates' directors, officers,
      employees, agents or representatives) from undertaking offences relating
      directly or indirectly to bribery.

	 	 	 
	 	(g) 	
      There exists no relationship and there are no agreements
      or arrangements between, on the one hand, the shareholders of the Company
      or any of its Associates, and any Government Official or an Associate of
      any Government Official on the other, where such relationship, agreement
      or arrangement may or may reasonably be considered to have an influence on
      the Company's performance of its obligations thereunder or the performance
      by the Government Official of his duties.

43 

	 	(h) 	
      Neither the Company nor any of its or its Associates'
      directors, officers, employees, agents or representatives is an Associate
      of a Government Official or of an Associate of any Government
    Official.

	 	 	 
	 	(i) 	
      No Government Official or Designated Party has any
      indirect ownership or other economic interest in either the Company, the
      contractual relationship established by this Agreement or the proceeds of
      this Agreement.

	 	 	 
	 	(j) 	
      The Company has, in connection with
–

	 	(i) 	
      this Agreement or any consideration payable in connection
      with this Agreement; or

	 	 	 
	 	(ii) 	
      the transactions contemplated by this Agreement;
  or

	 	 	 
	 	(iii) 	
      any transactions or activities after closing of this
      transaction,

whether by itself or by instructing or
encouraging anyone else, made, promised to make or offered any payment or
transfer of value or given, promised to give or offered any bribe, gift, loan,
fee, consideration, reward or advantage of any kind, directly or indirectly, to
– 

	 	(iv) 	
      any Government Official, Government Authority or
      political party;

	 	 	 
	 	(v) 	
      any officer, director, employee, agent or representative
      of any customer of the Company; or

	 	 	 
	 	(vi) 	
      to any other person or entity,

in each case if such payment or
transfer would violate any law.

	22. 	
      DEALING WITH CLIENTS

	 	 
		
      All services and products provided by the Group to
      clients have been provided or organised in all material respects in
      accordance with the agreements governing such services and products and
      the Group has been compensated for such services and products in all
      material respects in accordance with such agreements.

	 	 
	23. 	
      GENERAL

	 	 
		
      As far as the Warrantors are Aware,: (i) all disclosures
      made to Net 1 during the process of its due diligence were, at the time of
      such disclosure, true and correct in all material respects; and (ii) it
      has not withheld any information which the Company, acting bona fide,
      believes is material to disclose to Net 1 in terms of the Proposed
      Transaction.

44 

ANNEXURE B - DISCLOSURE SCHEDULE 

 

45 

ANNEXURE C - AUDITED ACCOUNTS 

 

46 

ANNEXURE D - SIGNATURE DATE ACCOUNTS 

 

47Net 1 UEPS Technologies, Inc.: Exhibit 10.70 - Filed by newsfilecorp.com

Exhibit 10.70

	 	 	 
	 	MEMORANDUM OF
      INCORPORATION 	 
	 	 	 

DNI - 4PL CONTRACTS PROPRIETARY LIMITED 

 

 

 

		AJD Holdings 
(Pty) Ltd 	Peter Gain 	Richmark Holdings 
(Pty)
      Ltd 	Net 1 Applied 
Technologies
      South 
Africa (Pty) Ltd 	DNI - 4PL Contracts 
(Pty)
      Ltd 
	Initial 
Who warrants that he/she
      is 
duly authorised to 	/s/ A.J. Dunn 	/s/ P.K. Gain 	/s/ A.J. Dunn 	/s/ H.G. Kotzé 	/s/ A.J. Dunn 

Memorandum of Incorporation

DNI - 4PL Contracts Proprietary Limited 

(Registration number: 2005/040937/07) 

Article 1 - Interpretation

In this MOI clause headings are inserted for convenience only
and shall not be used in its interpretation and, unless the context clearly
indicates a contrary intention,

	1.1 	
      an expression which denotes -

	 	 	 
		(a) 	
      any gender includes the other gender;

	 	 	 
		(b) 	
      a natural person includes a juristic person and vice
      versa;

	 	 	 
		(c) 	
      the singular includes the plural and vice
  versa;

	1.2 	
      the following expressions shall bear the meanings
      assigned to them below and cognate expressions bear corresponding meanings
      –

	 	 	 
		(a) 	
      Additional Subscription Agreement - the
      subscription agreement headed "Additional Subscription Agreement"
      to be entered into between the Company, Net 1, AJD Holdings and Richmark,
      contemporaneously with the Shareholders Agreement;

	 	 	 
		(b) 	
      AJD Holdings - AJD Holdings Proprietary Limited, a
      limited liability private company duly incorporated in accordance with the
      laws of RSA with registration number 1975/004328/07;

	 	 	 
		(c) 	
      Board - the board of directors of the Company from
      time to time;

	 	 	 
		(d) 	
      Blue Label - Blue Label Telecoms Limited, a
      limited liability public company duly incorporated in accordance with the
      laws of the RSA with registration number 2006/002679/06;

	 	 	 
		(e) 	
      Budget and Business Plan - as defined in the
      Shareholders' Agreement;

	 	 	 
		(f) 	
      Business Day - any day other than a Saturday,
      Sunday, official public holiday in the RSA;

	 	 	 
		(g) 	
      Company - DNI - 4PL Contracts Proprietary Limited,
      a private company duly incorporated in accordance with the laws of the
      RSA, registration number 2005/040937/07;

	 	 	 
		(h) 	
      Companies Act - the Companies Act 71 of 2008, as
      amended from time to time, including any regulations promulgated
      thereunder and for the time being in force;

	 	 	 
		(i) 	
      Director- a director of the Company from time to
      time;

	 	(j) 	
      Dispose - to sell, transfer, make over, give,
      donate, exchange, dispose of, unbundle, distribute or otherwise alienate
      and "Disposal" has a corresponding meaning;

	 	 	 
	 	(k) 	
      Encumber- to mortgage, pledge, cede, assign,
      confer security, hypothecate, create a lien or security interest,
      preferential right or trust arrangement or other agreement or arrangement,
      the effect of which is to create security, and Encumbrance has a
      corresponding meaning;

	 	 	 
	 	(l) 	
      Group - the Company and its subsidiaries, and
      "Group Company" shall mean any of them;

	 	 	 
	 	(m) 	
      Measurement Period - the period commencing on 1
      July 2017 and ending 30 June 2019;

	 	 	 
	 	(n) 	
      MOI - the memorandum of incorporation of the
      Company, being this document (including any schedules hereto), as amended
      or replaced from time to time;

	 	 	 
	 	(o) 	
      Net 1 - Net 1 Applied Technologies South Africa
      Proprietary Limited, a limited liability private company duly incorporated
      in accordance with the laws of RSA with registration number
      2002/031446/07;

	 	 	 
	 	(p) 	
      Ordinary A Share - shall bear the meaning ascribed
      thereto in Schedule 1;

	 	 	 
	 	(q) 	
      Ordinary Share - shall bear the meaning ascribed
      thereto in Schedule 1;

	 	 	 
	 	(r) 	
      Participation Interest - the rights which a
      Shareholder has to generally participate in distributions made by the
      Company (on account of the shares held by a Shareholder in the Company
      from time to time and having regard to all shares in the Company then in
      issue) expressed as a percentage;

	 	 	 
	 	(s) 	
      Richmark - Richmark Holdings Proprietary Limited,
      a limited liability private company duly incorporated in accordance with
      the laws of RSA with registration number 2000/013818/07;

	 	 	 
	 	(t) 	
      RSA - the Republic of South Africa;

	 	 	 
	 	(u) 	
      Share - an Ordinary Share and an Ordinary A Share
      in the Company (as the context may indicate), having the preferences,
      rights limitations, and other terms contemplated in Schedule 1;

	 	 	 
	 	(v) 	
      Shareholder - the shareholders of the Company from
      time to time; and

	 	 	 
	 	(w) 	
      Shareholders' Agreement - at any time means, the
      shareholders' agreement to which, all of the Shareholders at the time are
      party and which relates in whole or in part to their rights and
      obligations in relation to each other and/or the Company as
      Shareholders;

	1.3 	
      any reference to legislative provisions shall be
      reference to the Companies Act, unless indicated otherwise;

	 	 
	1.4 	
      any reference to any legislation is to such legislation
      as at the date of adoption of this MOI and as amended or re-enacted from
      time to time;

	1.5 	
      when any number of days is prescribed such number shall
      exclude the first and include the last day unless the last day falls on a
      day which is not a Business Day, in which case the last day shall be the
      next succeeding day which is a Business Day;

	 	 
	1.6 	
      any reference to days (other than a reference to Business
      Days) months or years shall be a reference to calendar days, months or
      years, as the case may be;

	 	 
	1.7 	
      the use of the words "including", "includes" and
      "include" followed by a specific example/s shall not be construed as
      limiting the meaning of the general wording preceding it and the rule of
      interpretation to the contrary shall not be applied in the interpretation
      of such general wording or such specific example/s; and

	 	 
	1.8 	
      where any term is defined within the context of any
      particular clause in this MOI, the terms so defined, unless it is clear
      from the clause in question that the term has limited application to the
      relevant clause, shall bear the meaning ascribed to it for all purposes in
      terms of this MOI, notwithstanding that that term has not been defined in
      this interpretation clause; and

	 	 
	1.9 	
      where figures are referred to in numerals and words, if
      there is any conflict between the two, the words shall
  prevail.

Article 2 - Incorporation and Nature of the
Company 

	2.1 	
      Incorporation

	 	(a) 	
      The Company is incorporated as a private company, as
      defined in the Companies Act.

	 	 	 	 
	 	(b) 	
      The Company is incorporated in accordance with, and
      governed by:

	 	 	 	 
	 		(i) 	
      the provisions of the Companies Act, without any
      limitation, extension, variation or substitution; and

	 	 	 	 
	 		(ii) 	
      the provisions of this MOI.

	2.2 	
      Powers of the Company

	 	(a) 	
      The Company is not subject to any provision contemplated
      in section 15(2)(b) or 15(2)(c) of the Companies Act.

	 	 	 
	 	(b) 	
      The purposes and powers of the Company are not subject to
      any restriction, limitation or qualification, as contemplated in section
      19(1)(b)(ii) of the Companies Act.

	2.3 	
      Memorandum of Incorporation and Company
    Rules

	 	(a) 	
      This MOI may be altered or amended only in the manner set
      out in section 16, 17 or 152(6)(b) of the Companies Act.

	 	 	 
	 	(b) 	
      To the extent that the provisions of this MOI are
      inconsistent with the provisions of the Shareholders' Agreement, this MOI
      shall, to the extent of any such inconsistency and to the extent required
      by the Companies Act, take precedence over the Shareholders' Agreement
      until this MOI is amended in accordance with Article 2.3(c). If however,
      the provisions of the Shareholders' Agreement merely supplement, but are
      not inconsistent with this MOI, then those supplementary provisions of the
      Shareholders' Agreement shall be given effect.

	 	 	 
	 	(c) 	
      Any Shareholder shall be entitled, by giving written
      notice to that effect to the Company and the other Shareholder(s), to
      require this MOI to be amended, to the extent permissible in terms of the
      Companies Act, so as to be consistent with the Shareholders' Agreement or
      to record the supplementary provisions of the Shareholders' Agreement.
      Upon receipt of that notice:

	 	(i) 	
      the Company shall procure that a general meeting of the
      Shareholders of the Company is called as soon as practically possible;
      and

	 	 	 
	 	(ii) 	
      the Shareholders shall exercise all votes which they may
      have to vote in favour of or to procure the adoption of all resolutions of
      the Company necessary to amend this MOI in terms of this Article
    2.3.

	 	(d) 	
      The authority of the Board to make rules for the Company
      (Rules), as contemplated in section 15(3) or section 15(5) of the
      Companies Act, is not limited or restricted in any manner by this
    MOI.

	 	(e) 	
      The Board must publish any Rules made in terms of section
      15(3) to section 15(5) of the Companies Act by delivering a copy of those
      Rules to each Shareholder by ordinary mail.

	 	 	 
	 	(f) 	
      The Company must publish a notice of any alteration of
      the MOI or the Rules, made in terms of section 17(1) of the Companies Act,
      by delivering a copy of the notice to each Shareholder by ordinary
      mail.

	2.4 	
      Optional provisions of Companies Act do not
      apply

	 	(a) 	
      The Company does not elect, in terms of section 34(2) of
      the Companies Act, to comply voluntarily with the provisions of Chapter 3
      of the Companies Act.

	 	 	 
	 	(b) 	
      The Company does not elect, in terms of section
      118(1)(c)(ii) of the Companies Act, to submit voluntarily to the
      provisions of Parts B and C of Chapter 5 of the Companies Act, and to the
      Takeover Regulations provided for in the Companies
Act.

Article 3 - Securities of the Company 

	3.1 	
      Securities

	 	(a) 	
      The Company is authorised to issue no more than the
      maximum number of each of the classes of shares as set out in Schedule 1,
      subject to the preferences, rights, limitations and other terms associated
      with each such class, as set out in Schedule 1.

	 	 	 
	 	(b) 	
      This MOI does not limit or restrict the authority of the
      Board to:

	 	(i) 	
      authorise the company to issue secured or unsecured debt
      instruments, as set out in section 43(2) of the Companies Act;
or

	 	 	 
	 	(ii) 	
      grant special privileges associated with any debt
      instruments to be issued by the Company, as set out in section 43(3) of
      the Companies Act; or

	 	 	 
	 	(iii) 	
      authorise the Company to provide financial assistance to
      any person in relation to the subscription of any option or Shares of the
      Company or a related or inter- related company, as set out in section 44
      of the Companies Act; or

	 	 	 
	 	(iv) 	
      approve the issuing of any authorised Shares of the
      Company as capitalisation shares, as set out in section 47(1) of the
      Companies Act; or

	 	 	 
	 	(v) 	
      resolve to permit Shareholders to elect to receive a cash
      payment in lieu of a capitalisation share, as set out in section
      47(1) of the Companies Act.

	3.2 	
      Registration of Beneficial
  Interests

The authority of the Board to allow the
Company's issued securities to be held by and registered in the name of one
person or the beneficial interest of another person, as set out in section 56(1)
of the Companies Act, is not limited or restricted by this MOI. 

	3.3 	
      Restriction on transfers and encumbrance of
      shares

	 	(a) 	
      The Company must not make an offer to the public of any
      of its Shares.

	 	 	 
	 	(b) 	
      Subject to Article 3.3(c), any Shareholder (solely after
      the Measurement Period) may only Dispose of or Encumber any Shares held by
      it in the Company in terms of this Article 3.3, Article 3.4 and any other
      provision of the Shareholders' Agreement specifically providing for
      Disposal and/or Encumbrance.

	 	 	 
	 	(c) 	
      Notwithstanding anything to the contrary contained
      herein, unless otherwise agreed by the Shareholders in
  writing:

	 	(i) 	
      for the duration of the Measurement Period, no Party
      shall be entitled to sell or in any other way Dispose of its Shares in the
      Company to a third party, unless the other Parties haves consented to such
      Disposal in writing and have waived, in writing, their pre-emptive rights
      to be offered such Shares in terms of Article 3.4;
and

	 	(ii) 	
      after the expiry of the Measurement Period, no Party
      shall be entitled to sell or in any other way Dispose of its Shares in the
      Company to a third party, other than as expressly permitted in terms of
      this MOI or the Shareholders Agreement; and

	 	 	 
	 	(iii) 	
      no Shareholder (other than (i) Net 1, which shall be
      entitled to Encumber its shares in favour of Rand Merchant Bank, and (ii)
      AJD Holdings and Richmark, each of which shall be entitled to Encumber
      their shares in favour of Peter Gain to facilitate the implementation of
      the transactions contemplated in an agreement headed "Framework
      Agreement" entered into between the Company, Net 1, Peter Gain, AJD
      Holdings and Richmark, contemporaneously with the Shareholders Agreement)
      shall be entitled to Encumber its Shares without the prior written consent
      of the other Shareholders.

	 	(d) 	
      Subject to Article 3.3(c) and Article 3.4,
      notwithstanding anything to the contrary in the MOI for the time being,
      but save as specifically otherwise agreed to in writing by all of the
      Shareholders or specifically permitted by this MOI, a Shareholder may only
      Dispose of any of its Shares in the Company if, in one and the same
      transaction it also Disposes of that portion of its loan account (if any)
      (Corresponding Loan Account) which bears the same proportion to its
      entire loan account (if any) as the number of Shares so Disposed of bear
      to the Participation Interest held by that
Shareholder.

	3.4 	
      Pre-emptive rights

	 	(a) 	
      Save as contemplated herein, if the Company proposes to
      issue any shares, other than as contemplated in section 39(1)(b) of the
      Companies Act, each Shareholder has the right, before any other person who
      is not a shareholder in the Company, to be offered and, within a
      reasonably time to subscribe for, a percentage of the Shares to be issued
      equal to that Shareholders' Participation Interest.

	 	 	 
	 	(b) 	
      Subject to Article 3.3, following the expiry of the
      Measurement Period, if any Shareholder (Offeror), wishes to Dispose
      or receives an offer for the purchase of any of its Shares in the Company,
      as the case may be, it shall first offer those Shares and its claims in
      respect of the Corresponding Loan Account to the remaining Shareholders
      (Offeree).

	 	 	 
	 	(c) 	
      Such offer contemplated in Article 3.4(a) (Offer)
      shall:

	 	(i) 	
      be in writing;

	 	 	 
	 	(ii) 	
      be irrevocable and open for acceptance by the Offeree/s
      for a period of 30 days following the date of receipt of the Offer by the
      Offeree/s (First Period);

	 	 	 
	 	(iii) 	
      stipulate a cash price (which shall be expressed and
      payable in South African Rands) at which the Offeror is prepared to
      Dispose of its Shares and claims in respect of the Corresponding Loan
      Account or at which the Offeror has received an offer for the purchase of
      the Shares concerned and its claims in respect of the Corresponding Loan
      Account. Such purchase price shall be:

	 	(A) 	
      payable free of deduction or set-off at the Company's
      registered office against delivery of the Shares in negotiable form and
      cession of the claims in respect of the Corresponding Loan Account to the
      Offerees;

	 	 	 
	 	(B) 	
      be capable of acceptance in whole or in part;
  and

	 	 	 
	 	(C) 	
      not be subject to any other term or
  condition.

	 	(d) 	
      If any of the Offeree/s do not accept the Offer or accept
      the Offer in part for the Shares and claims in respect of the
      Corresponding Loan Account offered to it (Declining Offeree), the
      Offeree/s who have accepted the Offer (Accepting Offerees) shall be
      entitled, within seven days after either the Declining Offeree has stated
      in writing that it does not accept the Offer (whether in whole or in part)
      or the expiry of the First Period, whichever is the earlier, to accept the
      Offer in respect of the Shares and claims in respect of the Corresponding
      Loan Account offered to the Declining Offeree and not accepted by it
      (Declined Offer) at the price and on the same terms and conditions,
      mutatis mutandis, stated in the Offer rateably in proportion to
      their respective Participation Interest held between them (or in such
      other proportions as may be agreed upon between them) and this procedure
      shall be repeated as often as is necessary until the Shares and claims in
      respect of the Corresponding Loan Account offered have been acquired or
      until no Accepting Offeree remains who is willing to accept the Declined
      Offer in whole or in part.

	 	 	 
	 	(e) 	
      If the procedure in Article 3.4(c) and Article 3.4(d) is
      completed and no Accepting Offeree remains who is willing to accept the
      Declined Offer in whole or in part, then the Offeror shall be entitled
      within 30 days after such non-acceptance, to offer in writing (Outside
      Offer) to Dispose of and transfer all of its Shares and claims in
      respect of the Corresponding Loan Account which formed the subject matter
      of the Offer and in respect of which the Offer was not accepted to any
      bona fide person (Third Party) at a price not lower and on terms
      and conditions not more favourable to the Third Party than those at which
      the Offeree/s were entitled to purchase those Shares and claims in respect
      of the Corresponding Loan Account in terms of the Offer; provided that the
      whole (and not part) of the Outside Offer shall be accepted by the Third
      Party.

	 	 	 
	 	(f) 	
      Transfer of the Offeror's Shares to the Third Party shall
      thereafter be registered as soon as possible, provided
  that:

	 	(i) 	
      the identity of the Third Party will have been approved
      by the Board by way of resolution, which approval may not be unreasonably
      withheld;

	 	 	 
	 	(ii) 	
      the Third Party will have agreed in writing to be bound,
      mutatis mutandis, in place of the Offeror to the Shareholders'
      Agreement and any other agreement for the time being subsisting between
      the Parties to the extent to which such agreement regulates their
      relationship inter se as Shareholders.

	 	(g) 	
      Waiver of pre-emptive rights in favour of Blue
      Label:

	 	(i) 	
      For a period of one year from the Effective Date (as
      defined in the Shareholders' Agreement), the Shareholders shall not have
      pre-emptive rights on the issue of any Share, as contemplated in Article 3.4(a)
above, in respect of the issuance of 45,000,000 Ordinary A Shares, provided
that: 

	 	(A) 	
      they are issued to Blue Label;

	 	 	 
	 	(B) 	
      they are issued on substantially the same terms that Net
      1 subscribed for (or will subscribe for) 45,000,000 Ordinary A Shares;
      and

	 	 	 
	 	(C) 	
      Article 3.4(f)(ii) is complied with mutatis mutandis
      or a new Shareholders Agreement is agreed and entered into between the
      Shareholders, Blue Label and the Company.

Article 4 - Shareholders and Meetings 

	4.1 	
      Shareholders' Right to Information

	 	 
		
      Every person who has a beneficial interest in any of the
      Company's securities has the rights to access information set out in
      section 26(1) of the Companies Act.

	 	 
	4.2 	
      Shareholders' Authority to
Act

	 	(a) 	
      If, at any time, there is only one Shareholder of the
      Company, the authority of that Shareholder to act without notice or
      compliance with any other internal formalities, as set out in section
      57(2) of the Companies Act, is not limited or restricted by this
    MOI.

	 	 	 
	 	(b) 	
      If, at anytime, every Shareholder is also a Director of
      the Company, as contemplated in section 57(4) of the Companies Act, the
      authority of the Shareholders to act without notice or compliance with any
      other internal formalities, as set out in that section is not limited or
      restricted by this MOI.

	4.3 	
      Shareholder Representation by
  Proxies

	 	(a) 	
      This MOI does not limit, restrict or vary the right of a
      Shareholder:

	 	 	 	 
	 		(i) 	
      to appoint 2 or more persons concurrently as proxies, as
      set out in section 58(3)(a) of the Companies Act; or

	 	 	 	 
	 		(ii) 	
      to delegate the proxy's powers to another person, as set
      out in section 58(3)(b) of the Companies Act.

	 	 	 	 
	 	(b) 	
      The requirement that a Shareholder must deliver to the
      Company a copy of the instrument appointing a proxy before that proxy may
      exercise the Shareholder's rights at a Shareholders' meeting, as set out
      in section 58(3)(c) of the Companies Act is not varied by this
  MOI.

	 	 	 	 
	 	(c) 	
      The authority of a Shareholder's proxy to decide without
      direction from the Shareholder whether to exercise, or abstain from
      exercising, any voting right of the Shareholder, as set out in section
      58(7) of the Companies Act is not limited or restricted by this
  MOI.

	4.4 	
      Record Date for Exercise of Shareholder
    Rights

	 	 
		
      If, at any time, the Board fails to determine a record
      date, as contemplated in section 59 of the Companies Act, the record date
      for the relevant matter is as determined in accordance with section 59(3)
      of the Companies Act.

	4.5 	
      Shareholders' Meetings

	 	 	 
		(a) 	
      The Company is not required to hold any Shareholders'
      meetings other than those specifically required by the Companies
    Act.

	 	 	 
		(b) 	
      The right of Shareholders to requisition a meeting, as
      set out in section 61(3) of the Companies Act, may be exercised by the
      holders of at least 10% of the voting rights entitled to be exercised in
      relation to the matter to be considered at the meeting.

	 	 	 
		(c) 	
      The authority of the Board to determine the location of
      any Shareholders' meeting, and the authority of the Company to hold any
      such meeting in the RSA or in any foreign country, as set out in section
      61(9) of the Companies Act is not limited or restricted by this
  MOI.

	 	 	 
		(d) 	
      The minimum number of days for the Company to deliver a
      notice of a Shareholders' meeting to the Shareholders, shall be in
      accordance with section 62(1) of the Companies Act.

	 	 	 
		(e) 	
      The minimum requirements for a notice of a Shareholders'
      meeting shall be in accordance with section 62(3) of the Companies
    Act.

	 	 	 
		(f) 	
      The authority of the Company to conduct a meeting
      entirely by electronic communication, or to provide for participation in a
      meeting by electronic communication, as set out in section 63(2) of the
      Companies Act is not limited or restricted by this MOI.

	 	 	 
		(g) 	
      The quorum for a Shareholders' meeting shall be one
      representative of each of the Shareholders present in person or
      represented by proxy. If no quorum is present at any duly convened meeting
      of Shareholders within 30 (thirty) minutes after the scheduled time for
      commencement of that meeting, the meeting shall be adjourned to be resumed
      at the same time and venue on the seventh Business Day thereafter. If at
      such adjourned meeting a quorum is not present within 30 (thirty) minutes
      after the scheduled time for commencement of that meeting, the
      Shareholders present shall constitute a quorum. Written notice of each
      adjournment specifying the business to be dealt with at the adjourned
      meeting shall be given by the Company to each of the Shareholders
      forthwith after such adjournment. No business shall be transacted at the
      resumption of any adjourned meeting other than the business left
      unfinished at the meeting from which the adjournment took place.

	 	 	 
		(h) 	
      The authority of a meeting to continue to consider a
      matter, as set out in section 64(9) of the Companies Act is not limited or
      restricted by this MOI.

	4.6 	
      Shareholders' Resolutions

	 	 	 
		(a) 	
      Ordinary resolutions:

	 	 	 
			
      For an ordinary resolution to be adopted at a
      Shareholders' meeting, it must be supported by the holders of more than
      50% of the voting rights exercised on the resolution, as provided in
      section 65(7) of the Companies Act.

	 	(b) 	
      Reserved matters:

	 	(i) 	
      The approval of the Shareholders holding at least 75% of
      the Participation Interest shall be required for those matters, as set out
      in section 65(11) of the Companies Act and the undermentioned matters (and
      notwithstanding anything to the contrary contained in this MOI, the powers
      of the Board shall accordingly be limited in regard to the matters set out
      below until the Shareholders have voted on and approved a particular
      matter:

	 	(A) 	
      the disposal or transfer (whether directly or through a
      subsidiary or other vehicle) of any business, share, asset or other
      investment (in the case of an asset otherwise than in the ordinary course
      of business of the Company);

	 	 	 
	 	(B) 	
      the establishment, acquisition or purchase of any
      business, share, asset or other investment (in the case of an asset
      otherwise than in the ordinary course of business of the
  Company);

	 	 	 
	 	(C) 	
      the Encumbering of any assets of the Company in any
      manner whatsoever;

	 	 	 
	 	(D) 	
      any change in the basis of accounting or accounting
      policies from those used during the immediately preceding financial year
      otherwise than in accordance with IFRS;

	 	 	 
	 	(E) 	
      any agreement between the Company and any Shareholder or
      any holding company or subsidiary of any Shareholder or any person holding
      at least 5% of the total Participation Interest of any
  Shareholder;

	 	 	 
	 	(F) 	
      the revaluation of any material asset;

	 	 	 
	 	(G) 	
      any decision to cover or not to cover forward any amounts
      receivable or payable in a currency other than ZAR;

	 	 	 
	 	(H) 	
      any decision not to insure (or to insure for a lesser
      amount) against such risks as may be recommended by the Company's
      insurance brokers;

	 	 	 
	 	(I) 	
      any termination of or amendment to the Company's
      retirement or medical aid funding;

	 	 	 
	 	(J) 	
      any amendment to the Company's MOI;

	 	 	 
	 	(K) 	
      any increase in, alteration or reduction or conversion of
      the Company's authorised or issued share capital;

	 	 	 
	 	(L) 	
      any variation of any of the rights attaching to any
      Shares or class of Shares in the Company;

	 	 	 
	 	(M) 	
      the issue or allotment by the Company of any shares of
      whatsoever class, bonus Shares, share options, share warrants or
      debentures, in each case other than as expressly provided for in this
      Agreement;

	 	 	 
	 	(N) 	
      the repurchase of any of the Company's issued
    Shares;

	 	(O) 	
      the liquidation or winding-up or the discontinuance of
      the business activities of the Company;

	 	 	 
	 	(P) 	
      any matter relating to the financing or capital or
      borrowings of the Company which would have the effect of directly or
      indirectly reducing the proportionate shareholding of any
    Shareholder;

	 	 	 
	 	(Q) 	
      any re-structuring of the Company, merger of the Company
      and any other entity and any joint venture agreements;

	 	 	 
	 	(R) 	
      any material change in the nature of the business of the
      Company;

	 	 	 
	 	(S) 	
      any appointment and removal of auditors to the
      Company;

	 	 	 
	 	(T) 	
      the listing of any Shares or share options on any
      recognised stock exchange;

	 	 	 
	 	(U) 	
      the incurring of any direct indebtedness (other than
      trade debt in the ordinary course of business) other than as contemplated
      in the Budget and Business Plan;

	 	 	 
	 	(V) 	
      the issue of guarantees, suretyships, letters of comfort
      or other similar undertakings (other than to secure trade debt in the
      ordinary course of business) other than as contemplated in the Budget and
      Business Plan;

	 	 	 
	 	(W) 	
      the incurring of any direct indebtedness (other than
      trade debt in the ordinary course of business) plus guarantees,
      suretyships, letters of comfort or other similar undertakings (other than
      to secure trade debt in the ordinary course of business) other than as
      contemplated in the Budget and Business Plan;

	 	 	 
	 	(X) 	
      the authorisation of foreign exchange commitments, unless
      such commitments are contemplated in the Budget and Business
  Plan;

	 	 	 
	 	(Y) 	
      the instituting of any material litigation or settlement
      of any material claim or any such claim or settlement which is strategic
      in nature and falls outside of the ordinary course of business (regardless
      of materiality), but specifically excluding the institution of any legal
      proceedings against any Shareholder or Director; and

	 	 	 
	 	(Z) 	
      and the aforegoing shall apply, mutatis mutandis,
      in relation to any Group Company.

	 	(ii) 	
      This entire Article 4.6(b)(i) shall automatically fall
      away and be of no further force and effect on the earlier to occur of the
      implementation of the option contained in clause 15 or 16 of the
      Shareholders Agreement.

	 	(c) 	
      Written resolutions:

	 	 	 	 
	 		(i) 	
      Subject to the Companies Act, a written resolution of
      Shareholders which has been signed by the majority of the Shareholders,
      and upon which the requisite majority of Shareholders indicate their
      approval of the resolution, shall be as valid and effective as if it had
      been adopted by a duly convened meeting of Shareholders, as the case may
      be.

	 	(ii) 	
      Unless the contrary is stated therein, any such
      resolution shall be deemed to have been passed on the date on which it was
      signed by or on behalf of the Shareholder, who signed it last. The
      resolution may consist of one or more documents each signed by one or more
      Shareholders.

	 	 	 
	 	(iii) 	
      A scanned copy of the resolution shall be sufficient
      evidence that such resolution has been signed by the Shareholder whose
      signature appears thereon.

Article 5 - Directors and Officers 

	5.1 	
      Appointment of Directors and removal of
      Directors

	 	(a) 	
      Each Shareholder undertakes to co-operate to procure the
      election and/or removal, as the case may be, of any person nominated by
      any other Shareholder in compliance with this Article 5.1, and, for this
      purpose, shall vote in favour of or sign any resolution of Shareholders
      which is required to effect such election in terms of section 68 of the
      Companies Act, or removal, in terms of section 71 of the Companies
    Act.

	 	 	 
	 	(b) 	
      It is agreed that -

	 	(i) 	
      the Company shall have a minimum of 3
Directors;

	 	 	 	 
	 	(ii) 	
      each Shareholder shall be entitled, by giving written
      notice to that effect to the Company from time to time,
  to:

	 	(A) 	
      nominate one Director to the candidate pool for election
      as Directors. It is recorded that the Director nominated by AJD Holdings
      is Andrew Dunn and that he is the designated chief executive officer of
      the Company;

	 	 	 
	 	(B) 	
      nominate for election one or more alternate(s) to the
      Directors nominated by it; and

	 	 	 
	 	(C) 	
      request that the Company call a shareholders' meeting to
      elect the persons nominated by it or to remove any Director (or alternate)
      nominated by it and elected to serve on the Board, in terms of section 71
      of the Companies Act;

	 	(iii) 	
      no Shareholder shall nominate any person to the candidate
      pool for election as a Director:

	 	(A) 	
      unless pursuant to consultation with the other
      Shareholders; or

	 	 	 
	 	(B) 	
      if that person's directorship will contravene this MOI or
      the Companies Act.

	 	(iv) 	
      Each person appointed as a Director or alternate shall,
      prior to his appointment becoming effective, but save to the extent
      otherwise agreed in writing by the Company, execute a written
      acknowledgement in which he:

	 	(A) 	
      acknowledges and agrees that he will not have any claims
      against the Company for remuneration or compensation for services rendered
      to the Company or for reimbursement of expenses incurred in the business
      of the Board other than such remuneration or reimbursement, if any, as may
      be approved by the Board; and

	 	 	 
	 	(B) 	
      furnishes the Company with a postal address and e-mail
      address at which notice of meetings shall be given to
  him.

	 	(v) 	
      Any Shareholder which has nominated a Director to the
      candidate pool for election in terms of Article 5.1(b)(ii)
  shall:

	 	(A) 	
      procure the resignation of that Director as soon
    as:

	 	 	 	 
	 		(1) 	
      that Shareholder ceases to be entitled to nominate that
      Director in terms of Article 5.1(b), whether as a result of that
      Shareholder ceasing to be a Shareholder or otherwise; or

	 	 	 	 
	 		(2) 	
      the continued directorship of that Director would
      contravene this MOI or the Companies Act; and

	 	 	 	 
	 	(B) 	
      indemnify the Company against any loss, liability,
      damage, cost or expense which may be suffered or incurred by the Company
      as a result of any removal or resignation of such Director from the
      Board.

	5.2 	
      Authority of the Board of Directors

	 	 	 	 
		(a) 	
      The authority of the Board to manage and direct the
      business and affairs of the Company, as set out in section 66(1) of the
      Companies Act is not limited or restricted by this MOI.

	 	 	 	 
		(b) 	
      If, at anytime, the Company has only one Director, as
      contemplated in section 57(3) of the Companies Act, the authority of that
      director to act without notice or compliance with any other internal
      formalities, as set out in that section is not limited or restricted by
      this MOI.

	 	 	 	 
		(c) 	
      The Board may not register the transfer of any Shares
      unless the conditions for the transfer contemplated in Articles 3.3 and
      Article 3.4 have been met.

	 	 	 	 
	5.3 	
      Directors' Meetings

	 	 	 	 
		(a) 	
      Any Director, or the company secretary (if one is
      appointed) may convene a meeting of Directors at any time by giving not
      less than seven days (or such lesser period as may be reasonable in the
      circumstances) written notice of such meeting to the other Directors and
      the Company. The Board shall meet as and when required and any Director
      shall be entitled to convene a meeting of the Board. Notwithstanding the
      aforegoing, the Board shall meet at least once every calendar
    quarter.

	 	 	 	 
		(b) 	
      This MOI does not limit or restrict the authority of the
      Company's Board to:

	 	 	 	 
			(i) 	
      conduct a meeting entirely by electronic communication,
      or to provide for participation in a meeting by electronic communication,
      as set out in section 73(3) of the Companies Act; or

	 	 	 	 
			(ii) 	
      determine the manner and form of providing notice of its
      meetings, as set out in section 73(4) of the Companies Act; or

	 	 	 	 
			(iii) 	
      proceed with a meeting despite a failure or defect in
      giving notice of the meeting, as set out in section 73(5) of the Companies
      Act, or

	 	 	 	 
			(iv) 	
      consider a matter other than at a meeting, as set out in
      section 74 of the Companies Act.

	 	 	 	 
		(c) 	
      The quorum for the meeting of the Board shall be one
      Board representative for each Shareholder. If no quorum is present at any
      duly convened meeting of the Board within 30 (thirty) minutes after the
      scheduled time for commencement of that meeting,
the meeting shall be adjourned to be resumed at the same time and
venue on the seventh Business Day thereafter. If at such adjourned meeting a
quorum is not present within 30 (thirty) minutes after the scheduled time for
commencement of that meeting, the Directors present shall constitute a quorum.
Written notice of each adjournment specifying the business to be dealt with at
the adjourned meeting shall be given by the Company to each of the Directors
forthwith after such adjournment. No business shall be transacted at the
resumption of any adjourned meeting other than the business left unfinished at
the meeting from which the adjournment took place. 

	 	(d) 	
      AJD Holdings and Richmark shall (for so long as they
      between them hold the majority of the Participation Interest) jointly
      elect a chairman from among the Board who shall (i) chair and determine
      the procedures to be followed at all meetings of the Board and
      Shareholders; and (ii) not have a deliberative or casting vote, in the
      event of a deadlock. In the event that the chairman is absent from any
      given board meeting, the chairman shall appoint a proxy to vote in his/her
      stead at the relevant board meeting.

	5.4 	
      Board Resolutions

	 	 	 
		(a) 	
      Resolutions of the Board shall be passed by a simple
      majority of the votes of the Directors cast at a quorate meeting, on the
      basis that each Director at quorate meetings of the Board shall have that
      percentage of the total votes of all Directors which corresponds with the
      Participation Interest in the Company held by the Shareholder which
      nominated such Director, divided by the number of Directors nominated by
      such Shareholder, who are present and voting at such meeting.

	 	 	 
		(b) 	
      Subject to the Companies Act, a written resolution of the
      Board which has been signed by a majority of the Directors (or their
      alternatives) and upon which the requisite majority of the Directors
      indicate their approval of the resolution, shall be as valid and effective
      as if it had been adopted by a duly convened meeting of the Board. Unless
      the contrary is stated therein, any such resolution shall be deemed to
      have been passed on the date on which it was signed by or on behalf of the
      Director (or their alternate) who signed it last. The resolution may
      consist of one or more documents each signed by one or more Directors (or
      their alternates), as the case may be. A scanned copy of the resolution
      shall be sufficient evidence that such resolution has been signed by the
      Director whose signature appears thereon.

	5.5 	
      Directors compensation and financial
    assistance

	 	 	 
		
      This MOI does not limit the authority of the Company
      to:

	 	 	 
		(a) 	
      pay remuneration to the Company's directors, in
      accordance with a special resolution approved by the Shareholders within
      the previous two years, as set out in section 66(9) and section 66(10) of
      the Companies Act;

	 	 	 
		(b) 	
      advance expenses to a director, or indemnify a director,
      in respect of the defense of legal proceedings, as set out in section
      78(4) of the Companies Act;

	 	 	 
		(c) 	
      indemnify a director in respect of liability, as set out
      in section 78(5) of the Companies Act; or

	 	(d) 	
      purchase insurance to protect the Company, or a director,
      as set out in section 78(7) of the Companies
Act.

SCHEDULE 1 - SHARE TERMS 

	1. 	
      DEFINITIONS

	 	(a) 	
      In these terms and conditions, unless inconsistent with
      or otherwise indicated by the context, the following words and expressions
      bear the meanings assigned to them and cognate expressions bear
      corresponding meanings —

	 	 	 	 
	 		(i) 	
      "Companies Act" means the Companies Act, No. 71 of
      2008;

	 	 	 	 
	 		(ii) 	
      "Company" means DNI - 4PL Contracts Proprietary
      Limited, registration number 2005/040937/07, a company with limited
      liability duly registered in accordance with the laws of the Republic of
      South Africa;

	 	 	 	 
	 		(iii) 	
      "Distribution" means any payment of whatsoever
      nature and howsoever described (including share buy backs, a distribution
      or payment upon or in connection with a reduction of capital, an issue of
      shares or other securities credited as fully or partly paid up by way of a
      capitalisation of profits or reserves and the payment (or repayment) of
      any amount on loan account) by or on behalf of a company to or for the
      account of any member or shareholder of that company, in each case whether
      paid or payable and whether paid or payable in cash or in specie,
      and for the avoidance of doubt, includes any "distributions" as
      defined in the Companies Act;

	 	 	 	 
	 		(iv) 	
      "Holder" means, in relation to any Ordinary A
      Share at any time, the Person who then holds that Ordinary A Share at that
      time;

	 	 	 	 
	 		(v) 	
      "Ordinary Shares" means the par value ordinary
      shares in the Company which confer on their Holder/s the rights and
      privileges set out in 3 below;

	 	 	 	 
	 		(vi) 	
      "Ordinary A Shares" means no par value ordinary
      "A" shares in the Company which confer on their Holder/s the rights and
      privileges set out in 5 below; and

	 	 	 	 
	 		(vii) 	
      "Person" includes any individual, firm, company,
      corporation, government, state or agency of a state or any association,
      trust, joint venture, consortium or partnership (whether or not having
      separate legal personality).

	 	 	 	 
	 	(b) 	
      The words "include" and "including" mean
      "include without limitation" and "including without limitation". The use
      of the words "include" and "including" followed by a
      specific example or examples shall not be construed as limiting the
      meaning of the general wording preceding it.

	2. 	
      ORDINARY SHARES

	 	 
		
      The Company is authorised to issue no more than 1,000
      Ordinary Shares with a par value of R1.00
each.

	3. 	
      RIGHTS AND ENTITLEMENTS OF ORDINARY
  SHARES

	 	(a) 	
      The rights and privileges attaching to the Ordinary
      Shares prior to the issue of Ordinary A Shares shall be as
  follows:

	 	 	 	 
	 		(i) 	
      the Ordinary Shares shall rank pari passu with all
      other Ordinary Shares in respect of all
rights.

	 	(ii) 	
      accordingly, each Ordinary Share entitles the Holder
      thereof to –

	 	(A) 	
      vote on any matter to be decided by the shareholders of
      the Company and to 1 vote in the case of a vote by means of a
  poll;

	 	 	 
	 	(B) 	
      participate proportionally (having regard to the total
      number of Ordinary Shares in issue at the applicable time) in any
      Distribution made by the Company; and

	 	 	 
	 	(C) 	
      receive proportionally (having regard to the total number
      of Ordinary Shares in issue at the applicable time) to the net assets of
      the Company upon its liquidation.

	 	(b) 	
      Upon the issuance of any Ordinary A Shares and for so
      long as there remains any Ordinary A Shares in issue, the rights and
      privileges of the Ordinary Shares shall be subject to the rights and
      privileges attaching to the Ordinary A Shares.

	4. 	
      ORDINARY A SHARES

	 	 
		
      The Company is authorised to issue no more than
      90,000,000 ordinary A shares, with the rights and entitlements set out in
      5 below.

	 	 
	5. 	
      RIGHTS AND ENTITLEMENTS OF ORDINARY A
  SHARES

	 	 
		
      Each Holder shall be entitled, in respect of the Ordinary
      A Shares held by it, to the following rights –

	 	(a) 	
      1% of the total voting rights exercisable in the Company
      for each 1,000,000 Ordinary A Shares held by a Holder, or part
    thereof;

	 	 	 
	 	(b) 	
      1% of the rights to any and all Distributions for each
      1,000,000 Ordinary A Shares held by a Holder, or part thereof, provided
      that the A Ordinary Shares shall not confer the Holder the right to
      receive –

	 	(i) 	
      any cash distribution declared and made by the Company in
      respect of the subscription proceeds received by the Company pursuant to
      the issue of any Ordinary A Shares; or

	 	 	 
	 	(ii) 	
      any cash distribution, the quantum of which is determined
      with reference to the Company's profit after tax in respect of the period
      between 1 March 2017 and 30 June 2017;

	 	(c) 	
      upon the Company's liquidation, 1% of the net assets of
      the Company for each 1,000,000 Ordinary A Shares, or part
  thereof.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00274-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00274-of-00352.parquet"}]]