Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Net 1 UEPS Technologies, Inc. - Exhibit 10.42

NET 1 UEPS TECHNOLOGIES, INC. 
RESTRICTED
STOCK AGREEMENT 
FOR NON-EMPLOYEE DIRECTORS 

          Net
1 UEPS Technologies, Inc. (the “Company”) has granted to the
Non-Employee Director named below (“you” or “your”),
effective as of the Grant Date specified below, restricted shares (each, an
“Award Share,” and collectively, the “Award Shares”)
of common stock, par value $0.001 per share, of the Company (the “Common
Stock”) upon the terms and conditions set forth in this Restricted Stock
Agreement (the “Agreement”) and the Amended and Restated 2004
Stock Incentive Plan of Net 1 UEPS Technologies, Inc. (the
“Plan”), the provisions of which are incorporated into this
Agreement. Except as otherwise provided in Section 7 of this Agreement with
respect to applicable tax and social insurance withholding, you are not required
to pay any amount to the Company for the receipt of these Award Shares. By
signing this Agreement, you: (a) acknowledge that you have read this Agreement;
(b) accept the Award Shares subject to all of the terms and conditions of this
Agreement; and (c) agree to accept as binding, conclusive, and final all
decisions or interpretations of the Company upon any questions arising under
this Agreement. For purposes of this Agreement, actions and determinations to be
made by the Company may be made by the Board of Directors of the Company or by
such committee or delegate as may be appointed by the Board of Directors from
time to time. 

	 	Name of Director: 	Paul Edwards 
	 	 	 
	 	Grant Date: 	February 6, 2008 
	 	 	 
	 	Number of Award Shares: 	1,351 

          1.     
DEFINITIONS AND
CONSTRUCTION. 

          Unless
otherwise defined in this Agreement, capitalized terms have the meanings
ascribed to them in the Plan. The captions and titles contained in this
Agreement are for convenience only and do not affect the meaning or
interpretation of any provision of this Agreement. 

          2.      VESTING;
TERMINATION OF EMPLOYMENT OR
SERVICE.

                    (a)     
All of the Award Shares are nonvested and forfeitable as of the Grant Date. For
clarity, as used in this Agreement, the term “vest” means the lapse of
restrictions on the Award Shares in accordance with the terms of this Agreement.

                    (b)      The
Award Shares shall become vested and nonforfeitable, if at all, in accordance
with the rules set forth below, provided that your service with
the Company as a member of its Board of Directors ( “Service”) is
continuous from the Grant Date through the applicable vesting date. No Award
Shares shall vest or become nonforfeitable after the date your Service
terminates for any reason. If your Service with the Company ceases for any
reason, all Award 

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Shares that are not then vested and nonforfeitable will be
immediately forfeited by you and transferred to the Company upon such cessation
for no consideration. 

                    (c)     
Vesting of the Award Shares is conditioned upon your continuous Service through
the applicable vesting date. The aggregate number of whole Award Shares subject
to this Agreement that shall have become vested as of any date is determined by
multiplying the number of Award Shares listed above by the following percentage
and rounding down: 

	Vesting
      Date 	Percentage 
	Prior to February
      6, 2009 	0% 
	On or after
      February 6, 2009 and prior to February 6, 2010 	33.333% 
	On or after
      February 6, 2010 and prior to February 6, 2011 	66.666% 
	On or after
      February 6, 2011 	100% 

          As
provided in Section 3 below, an Award Share becomes transferable 11 months after
the date on which it becomes vested and nonforfeitable. 

          3.      RESTRICTIONS
ON TRANSFER.

                    (a)     
Until 11 months after an Award Share becomes vested and nonforfeitable, it may
not be sold, assigned, transferred, pledged, hypothecated, exchanged, or
disposed of in any way (whether by operation of law or otherwise), except by
will or the laws of descent and distribution and shall not be subject to
execution, attachment, anticipation, alienation, encumbrance, garnishment by
your creditors or beneficiaries, or similar process. 

                    (b)     
Any attempt to dispose of any such Award Shares in contravention of the
restrictions set forth in Section 3(a) shall be null and void and without
effect. The Company shall not be required to (i) transfer on its books any Award
Shares that have been sold or transferred in contravention of this Agreement or
(ii) treat as the owner of Award Shares, or otherwise accord voting, dividend,
or liquidation rights to, any transferee to whom Award Shares have been
transferred in contravention of this Agreement. 

          4.     
COMPANY-ASSISTED
SALES OF
SHARES;
GRANT OF POWER OF
ATTORNEY FOR SALE OF
SHARES. 

          You
acknowledge that you have been advised that it may be impracticable for you on
your own to sell, or to arrange for a sale through a broker or otherwise, vested
Award Shares. Therefore, the Company expects to assist you in this regard by
facilitating the sale of vested Award Shares, with the method and timing of such
sales to be determined by the Executive Committee of the Company, although the
Company has no obligation to do so. However, in the event that the Company does
attempt to facilitate any such sale of vested Award Shares, the Company does not
represent to you that such sale will be completed, or if it is completed, that
vested Award Shares will be sold at any particular price or require any
particular level of brokerage commissions. You hereby irrevocably constitute and
appoint Dr. Serge C.P. Belamant and Mr. Herman Gideon Kotze, each with full
power and authority to act together or alone in any 

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matter hereunder and with full power of substitution, your true
and lawful attorneys-in-fact (individually an “Attorney,” and
collectively, the “Attorneys”), with full power and authority in
your name, for and on your behalf, with respect to all matters arising in
connection with the sale of vested Award Shares, including, but not limited to,
the power and authority on your behalf to take any and all of the following
actions: (i) to sell such vested Award Shares through a broker, including a
transaction in which the broker will act as a principal, at a purchase price per
share as determined by negotiation between the Company, the Attorneys, and the
broker and to complete, execute, and deliver a stock power in relation to the
sale of vested Award Shares; (ii) on your behalf, to make representations and
warranties and enter into appropriate agreements to effect the sale of such
vested Award Shares; (iii) to instruct the Company’s transfer agent as the
Attorneys shall determine on all matters pertaining to the delivery and custody
of certificates for such vested Award Shares; (iv) to incur or authorize the
incurrence of any necessary or appropriate expense in connection with the sale
of such vested Award Shares; (v) if necessary, to endorse (in blank or
otherwise) on your behalf the certificate(s) representing such vested Award
Shares and a stock power or powers attached to such certificate(s); and (vi) to
sign such other certificates, documents, and agreements and take any and all
other actions as the Attorneys may deem necessary or desirable in connection
with the consummation of the transactions contemplated by the power of attorney
granted under this Section 4. Each Attorney may act alone in exercising the
rights and powers conferred on the Attorneys. Each Attorney is hereby empowered
to determine in his sole discretion the time or times when, the purpose for and
the manner in which any power herein conferred upon him shall be exercised, and
the conditions, provisions, or covenants of any instrument or document which may
be executed by him pursuant hereto. The power of attorney granted under this
Section 4 is an agency coupled with an interest and all authority conferred
hereby shall be irrevocable, and shall not be terminated by any act of yours or
by operation of law, whether by your death, disability, or incapacity or by the
occurrence of any other event or events. It is understood that the Attorneys
assume no responsibility or liability for any aspect of offering or selling any
vested Award Shares and shall not be liable for any error of judgment or for any
act done or omitted or for any mistake of fact or law except for the Attorneys’
own gross negligence, willful misconduct, or bad faith. It is understood that
the Attorneys, in acting pursuant to this power of attorney, are not acting in a
fiduciary capacity on your behalf and are not required to, nor will they
necessarily, obtain the best available price or the lowest possible fee or
commission when negotiating or otherwise facilitating any sale of Award Shares
pursuant to this power of attorney. The power of attorney granted under this
Section 4 shall be binding upon you and your heirs, legal representatives,
distributees, successors, and assigns. 

          5.      CERTIFICATE
REGISTRATION. 

          Physical
possession or custody of such stock certificates shall be retained by the
Company until such time as the Award Shares are transferable without restriction
and, thereafter, the Company shall either issue and deliver to you one or more
certificates in your name for the applicable number of vested Award Shares or
provide for uncertificated, book entry issuance of those Award Shares. Upon the
request of the Company, you shall deliver to the Company a stock power, endorsed
in blank, with respect to any Award Shares that have been forfeited 

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pursuant to this Agreement. All regular cash dividends on the
Award Shares held by the Company will be paid directly to you on the dividend
payment date. 

          6.      LEGENDS.

          Until
the Award Shares become transferable, the Company may at any time place legends
referencing any restrictions on transfer and any applicable U.S. federal, state,
or foreign securities law restrictions on all certificates representing Award
Shares subject to the provisions of this Agreement. You shall, at the request of
the Company, promptly present to the Company any and all certificates
representing Award Shares in your possession in order to carry out the
provisions of this Section 6. 

          7.      TAX
AND/OR SOCIAL
INSURANCE
WITHHOLDING. 

                    7.1     
Generally. At the time any withholding is required by applicable law, or at
any time thereafter as requested by the Company, you hereby authorize
withholding from payroll and any other amounts payable to you, and otherwise
agree to make adequate provision for any sums required to satisfy the federal,
state, local, and foreign tax and social insurance withholding obligations of
the Company or its affiliate, if any, which arise in connection with the grant
or vesting of the Award Shares. The Company shall have no obligation to deliver
shares of Common Stock or issue any Common Stock certificate until you have
satisfied the tax and social insurance withholding obligations of the Company or
its affiliate. The Company may, in its sole discretion, permit you to satisfy,
in whole or in part, any tax and social insurance withholding obligation which
may arise in connection with the grant or vesting of Award Shares either by
electing to have the Company withhold the issuance or delivery of shares of
Common Stock due to you, or by electing to deliver to the Company already-owned
Award Shares, in either case having a Fair Market Value (as defined below) equal
to the amount necessary to satisfy the statutory minimum withholding amount due.
For purposes of this Agreement, (i) if the shares of Common Stock are registered
under Section 12(b) or 12(g) of the Securities Exchange Act of 1934, as amended,
and listed for trading on a national exchange or market, “Fair Market
Value” means, as applicable, (a) the closing price on the relevant date,
the average of the high and low sale price on the relevant date, or the average
of the closing price over a period of up to 30 consecutive days immediately
prior to or including the relevant date, as determined in the Company’s
discretion, as quoted on the New York Stock Exchange, the American Stock
Exchange, the NASDAQ Global Select Market, or the NASDAQ Global Market; (b) the
last sale price on the relevant date or the average of the last sale price over
a period of up to 30 consecutive days immediately prior to or including the
relevant date, as determined in the Committee’s discretion, as quoted on the
NASDAQ Capital Market; (c) the average of the high bid and low asked prices on
the relevant date quoted on the NASDAQ OTC Bulletin Board Service or by the
National Quotation Bureau, Inc. or a comparable service as determined in the
Company’s discretion; or (d) if the shares of Common Stock are not quoted by any
of the above, the average of the closing bid and asked prices on the relevant
date furnished by a professional market maker for the shares, or by such other
source, selected by the Company; provided, however, that if an
average of prices over a period of days is not applicable and no public trading
of the shares occurs on the relevant date but the shares are so listed, then
Fair Market Value shall 

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be determined as of the earliest preceding date on which
trading of the shares does occur; and (ii) if the shares of Common Stock on the
relevant date are not listed for trading on a national exchange or market, then
Fair Market Value shall be the value established by the Company in good faith.

                    7.2      Section
83(b) Election. If you are a United States taxpayer, you hereby acknowledge
that you have been advised by the Company to seek independent tax advice from
your own advisors regarding the availability and advisability of making an
election under Section 83(b) of the Internal Revenue Code of 1986, as amended,
and that any such election, if made, must be made within 30 days of the Grant
Date. You expressly acknowledge that you are solely responsible for filing any
such Section 83(b) election with the appropriate governmental authorities,
irrespective of the fact that such election is also delivered to the Company.
You may not rely on the Company or any of its officers, directors, or employees
for tax or legal advice regarding this award. You acknowledge that you have
sought tax and legal advice from your own advisors regarding this award or have
voluntarily and knowingly foregone such consultation. 

          8.     
ADJUSTMENTS FOR CORPORATE
TRANSACTIONS AND OTHER
EVENTS. 

                    8.1     
Stock Dividend, Stock Split, and Reverse Stock Split. Upon a stock
dividend of, or stock split or reverse stock split affecting, the Common Stock,
the number of Award Shares and the number of such Award Shares that are
nonvested and forfeitable shall, without further action of the Board of
Directors of the Company, be adjusted to reflect such event. The Company shall
make appropriate adjustments, in its discretion, to address the treatment of
fractional shares with respect to the Award Shares as a result of the stock
dividend, stock split, or reverse stock split; provided, however,
that such adjustments do not result in the issuance of fractional Award Shares.
Adjustments under this Section 8.1 will be made by the Company, whose
determination as to what adjustments, if any, will be made and the extent
thereof will be final, binding, and conclusive. 

                    8.2      Binding
Nature of Agreement. The terms and conditions of this Agreement shall apply
with equal force to any additional and/or substitute securities received by you
in exchange for, or by virtue of your ownership of, the Award Shares, to the
same extent as the Award Shares with respect to which such additional and/or
substitute securities are distributed, whether as a result of any spin-off,
stock split-up, stock dividend, stock distribution, other reclassification of
the Common Stock of the Company, or similar event, except as otherwise
determined by the Company. If the Award Shares are converted into or exchanged
for, or stockholders of the Company receive by reason of any distribution in
total or partial liquidation or pursuant to any merger of the Company or
acquisition of its assets, securities of another entity, or other property
(including cash), then the rights of the Company under this Agreement shall
inure to the benefit of the Company’s successor, and this Agreement shall apply
to the securities or other property (including cash) received upon such
conversion, exchange, or distribution in the same manner and to the same extent
as the Award Shares. 

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          9.      RIGHTS
AS A STOCKHOLDER,
DIRECTOR, OR
CONSULTANT. 

                    9.1     
Rights as a Stockholder. Except as otherwise provided in this Agreement
with respect to restrictions on transfer of any nonvested and forfeitable Award
Shares, you are entitled to all rights of a stockholder of the Company,
including the right to vote the Award Shares and receive dividends and/or other
distributions declared on the Award Shares. 

                    9.2     
Director or Consultant Status. You understand and acknowledge that,
except as otherwise provided in a separate, written service or consulting
agreement between you and the Company or an affiliate, your Service is at the
discretion of the Company and is for no specified term. Nothing in this
Agreement or the Plan shall confer upon you any right to continue in the Service
of the Company or an affiliate or interfere in any way with any right of the
Company or an affiliate to terminate your Service as a director or consultant,
as the case may be, at any time. 

          10.      MISCELLANEOUS
PROVISIONS. 

                    10.1     
Further Instruments. The parties hereto agree to execute such further
instruments and to take such further action as may reasonably be necessary to
carry out the intent of this Agreement. 

                    10.2      Binding
Effect; Parties; Entire Agreement. Subject to the restrictions on transfer
set forth herein, this Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective heirs, executors, administrators,
successors, and assigns. This Agreement is between you and the Company. This
Agreement shall constitute the entire understanding and agreement between you
and the Company with respect to the subject matter contained in this Agreement
and supersedes any prior agreements, understandings, restrictions,
representations, or warranties among you and the Company with respect to such
subject matter. 

                    10.3      Amendment.
This Agreement may be amended from time to time by the Company in its
discretion; provided, however, that this Agreement may not be
modified in a manner that would have a materially adverse effect on the Award
Shares as determined in the discretion of the Company, except as provided in the
Plan or in a written document signed by each of the parties hereto. 

                    10.4     
Delivery of Documents and Notices. Any notice required or permitted under
this Agreement shall be given in writing and shall be deemed effectively given
(except to the extent that this Agreement provides for effectiveness only upon
actual receipt of such notice) upon personal delivery, upon electronic delivery
at the e-mail address, if any, provided for you by the Company, or, upon deposit
with an internationally recognized overnight courier service with postage and
fees prepaid, addressed to the other party at the address of such party set
forth in this Agreement or at such other address as such party may designate in
writing from time to time to the other party.

                                        (a)      Description
of Electronic Delivery. This Agreement, the Plan, and any reports
of the Company provided generally to the Company’s stockholders may be delivered

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to you electronically. Such means of electronic delivery may
include but do not necessarily include the delivery of a link to a Company
intranet or the internet site of a third party involved in administering this
Agreement, the delivery of the document via e-mail or such other means of
electronic delivery specified by the Company. 

                                        (b)      Consent
to Electronic Delivery. You consent to the electronic delivery of
this Agreement and any reports of the Company provided generally to the
Company’s stockholders. You acknowledge that you may receive from the Company a
paper copy of any documents delivered electronically at no cost to you by
contacting the Company by telephone or in writing. You further acknowledge that
you will be provided with a paper copy of any documents if the attempted
electronic delivery of such documents fails. Similarly, you understand that you
must provide the Company or any designated third party administrator with a
paper copy of any documents if the attempted electronic delivery of such
documents fails. You may revoke your consent to the electronic delivery of
documents or may change the electronic mail address to which such documents are
to be delivered (if you have provided an electronic mail address) at any time by
notifying the Company of such revoked consent or revised e-mail address by
telephone, postal service, or electronic mail. Finally, you understand that you
are not required to consent to electronic delivery of documents. 

                    10.5     
Applicable Law. This Agreement shall be governed by the laws of the State
of Florida as such laws are applied to agreements between Florida residents
entered into and to be performed entirely within the State of Florida. 

                    10.6      Counterparts.
This Agreement may be executed in counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument. 

                    10.7     
No Future Entitlement. By execution of this Agreement, you acknowledge
and agree that: (i) the grant of Award Shares is a one-time benefit which does
not create any contractual or other right to receive future grants of Award
Shares, or compensation in lieu of Award Shares; (ii) all determinations with
respect to any such future grants, including, but not limited to, the times when
Award Shares shall be granted and the maximum number of Award Shares granted,
will be at the sole discretion of the Company; (iii) the value of the Award
Shares is outside the scope of your service or consulting contract, if any; (iv)
the value of the Award Shares is not part of normal or expected compensation for
purposes of calculating any severance, resignation, redundancy, end of service
payments, bonuses, long-service awards, pension or retirement benefits, or
similar payments; (v) the vesting of the Award Shares ceases upon termination of
Service with the Company or other cessation of eligibility for any reason,
except as may otherwise be explicitly provided in this Agreement; and (vi) no
claim or entitlement to compensation or damages arises if the Award Shares do
not increase in value and you irrevocably release the Company from any such
claim that does arise. Neither this Agreement nor any provision hereunder shall
be construed so as to grant you any right to remain in the Service of the
Company. 

                    10.8      Personal
Data. For the exclusive purpose of implementing, administering, and managing
the Award Shares, you, by execution of this Agreement, consent to 

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the collection, receipt, use, retention, and transfer, in
electronic or other form, of your personal data by and among the Company and its
third party vendors. You understand that personal data (including but not
limited to, name, home address, telephone number, employee number, employment
status, social security number, tax identification number, job, and payroll
location, data for tax withholding purposes, and Award Shares granted,
forfeited, vested, and unvested) may be transferred to third parties assisting
in the implementation, administration, and management of the Award Shares and
you expressly authorize such transfer as well as the retention, use, and the
subsequent transfer of the data by the recipient(s). You understand that these
recipients may be located in your country or elsewhere, and that the recipient’s
country may have different data privacy laws and protections than your country.
You understand that data will be held only as long as is necessary to implement,
administer, and manage the Award Shares. You understand that you may, at any
time, request a list with the names and addresses of any potential recipients of
the personal data, view data, request additional information about the storage
and processing of data, require any necessary amendments to data or refuse or
withdraw the consents herein, in any case without cost, by contacting in writing
the Company’s legal department representative. You understand, however, that
refusing or withdrawing your consent may affect your ability to accept an Award
Share. 

                    10.9     
The Company’s Rights. The existence of the Award Shares shall not affect
in any way the right or power of the Company or its stockholders to make or
authorize any or all adjustments, recapitalizations, reorganizations or other
changes in the Company’s capital structure or its business, or any merger or
consolidation of the Company, or any issue of bonds, debentures, preferred or
other stocks with preference ahead of or convertible into, or otherwise
affecting the Common Stock or the rights thereof, or the dissolution or
liquidation of the Company, or any sale or transfer of all or any part of the
Company’s assets or business, or any other corporate act or proceeding, whether
of a similar character or otherwise. 

                    10.10      Conformity
  with Plan. This Agreement is intended to conform in all respects with, and
  is subject to all applicable provisions of, the Plan. Inconsistencies between
  this Agreement and the Plan shall be resolved in accordance with the terms of
  the Plan. In the event of any ambiguity in this Agreement or any matters as
  to which this Agreement is silent, the Plan shall govern. A copy of the Plan
  is available upon request to the Company. 

	NET 1 UEPS TECHNOLOGIES, INC. 	DIRECTOR 
	 	  
	By: /s/ Herman G. Kotzé                                                               
      	/s/ Paul Edwards                                                                                        
    
	 	Signature 
	Its: Chief Financial Officer                                                           
    	Paul Edwards                                                                                              
    
	 	Date 
	Address:         
           President Place 	February 12, 2008                                                                                       
    
	                              
      4th Floor 	Address 
	                              
      Johannesburg 2196 	Johannesburg, 2196 South Africa                                                            
    
	                              
      South Africa 	 

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{This Stock Power should be signed in blank and
deposited with the Company 
if share certificates are issued and/or delivered
to the Grantee
 for Award Shares that are nonvested and
forfeitable.} 

STOCK POWER 

          FOR
VALUE RECEIVED, the undersigned, ________________, hereby sells, assigns and
transfers unto Net 1 UEPS Technologies, Inc., a Florida corporation (the
“Company”), or its successor, ______________ shares of common
stock, par value $0.001 per share, of the Company standing in my name on the
books of the Company, represented by Certificate No. ____________, or an
appropriate book entry notation, and hereby irrevocably constitutes and appoints
______________________________________________________ as my attorney-in-fact to
transfer the said stock on the books of the Company with full power of
substitution in the premises. 

WITNESS: 

 

	__________________________________________	__________________________________________ 
	 	 
	 	Dated: _____________________________________ex10_1.htm

    Exhibit 10.1

    
      
        

      

    

    

    Summary
of Material Terms of

    the
Capital Bank Annual Incentive Plan

    

    The
Capital Bank Annual Incentive Plan (the “Plan”) is a compensatory plan through
which the Company’s senior officers are eligible to receive a cash bonus for
specific achievements on behalf of the Company’s performance and their
individual achievements to align the officers’ interests with those of the
Company’s shareholders. The payments under the Plan are targeted as a percentage
of base compensation, and the opportunity for a more significant award generally
increases when the Company achieves higher levels of performance. Company
performance is measured in terms of net income, asset growth, return on equity
and functional performance objectives.

    

    Each
executive’s cash bonus target is set by the Compensation/Human Resources
Committee of the Board of Directors at the beginning of each fiscal year. Actual
bonus payouts, if any, under the Plan will vary depending on the Company’s
actual results. In addition, the Compensation/Human Resources Committee has
retained the discretion under the Plan, in extraordinary circumstances, to award
bonuses or otherwise increase, reduce or eliminate bonuses that otherwise might
be payable to an executive officer based on actual performance even if
inconsistent with the Plan. Participants in the Plan who join the Company
mid-year will have bonuses, if any, prorated. Bonuses are intended to be paid no
later than 120 days following the close of the fiscal year.

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