Document:

Net 1 UEPS Technologies, Inc.: Exhibit 10.2 - Filed by newsfilecorp.com

    

    EXHIBIT 10.2

    EXECUTION

    SENIOR FACILITY G AGREEMENT

     

     

    DATED 24 JANUARY, 2022

     

     

    R750,000,000 SENIOR TERM LOAN FACILITY

     

     

    for

     

    NET1 APPLIED TECHNOLOGIES SOUTH AFRICA PROPRIETARY LIMITED

    (as borrower)

     

    provided by

     

     

    FIRSTRAND BANK LIMITED
(ACTING THROUGH ITS RAND MERCHANT BANK DIVISION)
(as lender)

     

     

    with

     

     

    FIRSTRAND BANK LIMITED
(ACTING THROUGH ITS RAND MERCHANT BANK DIVISION)
(as facility agent)

     

     

    	
                This Agreement is entered into subject to the terms of a Common Terms Agreement
dated on or about the date of this Agreement

                 

                 

            

    

    

    

    CONTENTS

    	
                Clause

            	
                Page

            
	 	 	 
	1.	Definitions and Interpretation	3
	2.	The Facility	5
	3.	Purpose	6
	4.	Conditions of Utilisation	6
	5.	Utilisation and Disbursement	6
	6.	Repayment	7
	7.	Prepayment and Cancellation	7
	8.	Interest	8
	9.	Interest Periods	9
	10.	Fees	9
	11.	Default	9
	12.	Trigger Event	9
	13.	Discussion Trigger Events	10
	14.	General	10
	Schedule 1 Form of Utilisation Request	12

    

    

    THIS AGREEMENT is made between:

    (1) NET1 APPLIED TECHNOLOGIES SOUTH AFRICA PROPRIETARY LIMITED, registration number 2002/031446/07, as borrower (the Borrower);

    (2) FIRSTRAND BANK LIMITED (ACTING THROUGH ITS RAND MERCHANT BANK DIVISION) as original lender (in this capacity, the Original Senior Facility G Lender); and

    (3) FIRSTRAND BANK LIMITED (ACTING THROUGH ITS RAND MERCHANT BANK DIVISION) as agent of the Senior Facility G Lenders (the Facility Agent).

    IT IS AGREED as follows:

    1. DEFINITIONS AND INTERPRETATION

    1.1 Definitions

    In this Agreement:

    1.1.1 Applicable Margin means, in relation to any Senior Facility G Loan or Unpaid Sum:

    (a) from the Fourth Amendment and Restatement Date until the date occurring nine months after the Fourth Amendment and Restatement Date, 3.00 per cent. per annum, provided that no Event of Default has occurred and is continuing;

    (b) from the date occurring nine months after the Fourth Amendment and Restatement Date:

    (i) while the Senior Facility G Outstandings are less than or equal to R250,000,000, 2.50 per cent. per annum;

    (ii) while the Senior Facility G Outstandings are between R250,000,000 and R450,000,000, 3.00 per cent. per annum;

    (iii) while the Senior Facility G Outstandings are equal to or greater than R450,000,000, 3.50 per cent. per annum;

    provided that no Event of Default has occurred and is continuing; and

    (c) with effect from the date of occurrence of an Event of Default and for so long as it is continuing, the Applicable Margin shall be the percentage per annum set out in paragraph (a) or (b) above, as applicable, plus 2.00 per cent.

    1.1.2 Availability Period means the period from and including the Fourth Amendment and Restatement Date to and including the date falling one month from the Fourth Amendment and Restatement Date.

    1.1.3 Available Commitment means the "Available Commitment" (as defined in the Common Terms Agreement) of a Senior Facility G Lender in respect of Senior Facility G.

    1.1.4 Available Facility means the aggregate, from time to time, of the Available Commitment of each Senior Facility G Lender.

    1.1.5 Break Costs means the amount (if any) determined by a Senior Facility G Lender by which:

    
        3

    

    

    (a) the interest (excluding the Applicable Margin) which that Senior Facility G Lender should have received for the period from the date of receipt of an amount repaid or prepaid in respect of any part of its participation in a Senior Facility G Loan or Unpaid Sum to the last day of the current Interest Period for that Senior Facility G Loan or Unpaid Sum, if the principal amount of that Senior Facility G Loan or Unpaid Sum received had been paid on the last day of that Interest Period;

    exceeds:

    (b) the amount which that Senior Facility G Lender would be able to obtain by placing an amount equal to the principal amount of the Senior Facility G Loan or Unpaid Sum received by it on deposit with a leading bank in the Johannesburg interbank market for a period starting on the Business Day following receipt or recovery and ending on the last day of the current Interest Period,

    and Break Gains means the amount (if any) determined by the relevant Senior Facility G Lender by which the amount of interest contemplated in paragraph (b) above exceeds that in paragraph (a) above.

    1.1.6 Common Terms Agreement means the written agreement entitled "Common Terms Agreement", dated on or about 21 July, 2017 (as amended and/or reinstated from time to time), between, amongst others, the Borrower (as borrower), the Original Senior Facility G Lenders (as lenders) and the Facility Agent.

    1.1.7 Discussion Trigger Event has the meaning given to that term in Clause 13.

    1.1.8 Final Maturity Date means the date occurring 18 months after the first Utilisation Date.

    1.1.9 Interest Payment Date means:

    (a) the last day of March, June, September and December in any year; and

    (b) the Final Maturity Date.

    1.1.10 Interest Period means, in relation to a Senior Facility G Loan, each period determined in accordance with Clause 9 (Interest Periods).

    1.1.11 Original South African Businesses means the Borrower and each of its Subsidiaries from time to time, but excluding members of CCMS Group and members of the K2021 Group.

    1.1.12 Party means a party to this Agreement.

    1.1.13 Senior Facility G or Facility means the term loan facility made available to the Borrower under this Agreement.

    1.1.14 Senior Facility G Commitment means the "Senior Facility G Commitment" as defined in the Common Terms Agreement.

    1.1.15 Senior Facility G Loan or Loan means a "Senior Facility G Loan" as defined in the Common Terms Agreement.

    1.1.16 Senior Facility G Outstandings means "Senior Facility G Outstandings" as defined in the Common Terms Agreement.

    1.1.17 Signature Date means the date stated at the beginning of this Agreement.

    
        4

    

    

    1.1.18 Total Senior Facility G Commitments means "Total Senior Facility G Commitments" as defined in the Common Terms Agreement.

    1.1.19 Trigger Event means the following have occurred between the Fourth Amendment and Restatement Date and the Trigger Event Date:

    (a) the initial public offering of Mobikwik has not occurred or, if the initial public offering of Mobikwik has occurred, the Borrower's shareholding in Mobikwik has a value of less than the local currency equivalent of ZAR500,000,000; and

    (b) the sale of Finbond or any other assets not included in the determination of the Covenant Equity Value together with the payment of the final tranche of Bank Frick sale proceeds has not generated aggregate proceeds of at least R250,000,000; and

    (c) an equity raise by the Borrower or Holdco of at least ZAR500,000,000 of which ZAR250,000,000 has been applied to prepay the Senior Facility G has not occurred.

    1.1.20 Trigger Event Date means 30 September, 2022.

    1.1.21 Unpaid Sum means an "Unpaid Sum" as defined in the Common Terms Agreement in respect of Senior Facility G.

    1.1.22 Utilisation Request means the notice substantially in the form set out in Schedule 1 (Form of Utilisation Request).

    1.2 Construction

    1.2.1 Terms and expressions defined in the Common Terms Agreement, unless expressly defined in this Agreement, have the same meaning in this Agreement.

    1.2.2 The provisions of clauses 1.3 (Construction) and 1.4 (Third party rights) of the Common Terms Agreement apply to this Agreement as though they were set out in full in this Agreement, except that a reference in those clauses to the Common Terms Agreement are to be construed as references to this Agreement.

    1.2.3 This Agreement and the rights and obligations of the Parties hereunder shall in all respects be subject to the terms and conditions of the Common Terms Agreement, which shall apply mutatis mutandis to this Agreement and be incorporated herein by reference.  If there is any conflict between this Agreement and the Common Terms Agreement, this Agreement shall prevail.

    2. THE FACILITY

    2.1 Senior Facility G

    Subject to the terms of this Agreement and the Common Terms Agreement, the Senior Facility G Lenders make available to the Borrower a Rand-denominated term loan facility in an aggregate amount equal to the Total Senior Facility G Commitments.

    2.2 Designation

    This Agreement is a Senior Facility Agreement and the Senior Facility G Agreement, each as defined in the Common Terms Agreement.

    
        5

    

    

    3. PURPOSE

    3.1 The Borrower shall apply all amounts borrowed by it under Senior Facility G only in or towards the purpose set out in clause 3.1.2 (Purpose) of the Common Terms Agreement, and for no other purpose whatsoever.

    3.2 No Finance Party is bound to monitor or verify the utilisation of Senior Facility G or will be responsible for, or for the consequences of, such a utilisation.

    4. CONDITIONS OF UTILISATION

    4.1 Conditions precedent

    The Borrower may not deliver a Utilisation Request to the Facility Agent under Senior Facility G (and no Senior Facility G Lender shall have any obligation to advance any Senior Facility G Loan or to provide any other form of credit or financial accommodation under this Agreement to any person) unless the Facility Agent has issued the notice contemplated by clause 4.1 (Initial conditions precedent) of the Common Terms Agreement.

    4.2 Further conditions precedent

    Subject to the Common Terms Agreement and this Agreement, a Senior Facility G Lender will only be obliged to participate in a Senior Facility G Loan if the requirements of clause 4.2 (Further conditions precedent) of the Common Terms Agreement have been met.

    4.3 Maximum number of Loans

    The Borrower may not deliver a Utilisation Request under Senior Facility G if as a result of the proposed Utilisation more than one Senior Facility G Loan would be outstanding.

    5. UTILISATION AND DISBURSEMENT

    5.1 Delivery of a Utilisation Request

    5.1.1 The Borrower may utilise Senior Facility G during the Availability Period by delivery to the Facility Agent of a duly completed Utilisation Request.

    5.1.2 Unless the Facility Agent otherwise agrees, the latest time for receipt by the Facility Agent of a Utilisation Request is 17h00 two Business Days before the proposed Utilisation Date or such shorter period as the Facility Agent agrees in writing.

    5.1.3 A Utilisation Request is irrevocable.

    5.1.4 A maximum of one Utilisation Request may be delivered by the Borrower on or following the Fourth Amendment and Restatement Date.

    5.2 Completion of a Utilisation Request

    5.2.1 A Utilisation Request will not be regarded as having been duly completed unless:

    (a) the proposed Utilisation Date is a Business Day within the Availability Period;

    (b) the currency and amount of the Utilisation comply with Clause 5.3 below; and

    
        6

    

    

    (c) it specifies a bank account in South Africa to which the Borrower requires the proceeds of the Senior Facility G Loan to be credited.

    5.2.2 Only one Senior Facility G Loan may be requested in a Utilisation Request.

    5.3 Currency and amount

    5.3.1 The currency specified in a Utilisation Request must be Rand.

    5.3.2 The amount of the proposed Senior Facility G Loan is for the full amount of the Senior Facility G Available Commitments of the relevant Senior Facility G Lender or such lesser amount as the Facility Agent may agree.

    5.4 Disbursement

    5.4.1 If the conditions set out in this Agreement and the Common Terms Agreement have been met, each Senior Facility G Lender must advance and lend to the Borrower, who shall borrow from each such Lender, that Lender's participation in the Senior Facility G Loan on the Utilisation Date.  A Senior Facility G Lender must make its participation in the Senior Facility G Loan available to the Facility Agent by no later than 11h00 on the applicable Utilisation Date for disbursement to the Borrower.

    5.4.2 The amount of each Senior Facility G Lender's participation in the Senior Facility G Loan will be equal to the proportion borne by its Available Commitment (if any) to the Available Facility immediately prior to making the Loan.

    5.4.3 No Senior Facility G Lender is obliged to participate in a Senior Facility G Loan if, as a result:

    (a) its share in the outstanding Senior Facility G Loan would exceed its Available Commitment; or

    (b) the outstanding Senior Facility G Loan would exceed the Available Facility.

    5.5 Automatic cancellation of Commitments

    The Senior Facility G Commitments which, at that time, are unutilised, and in respect of which no Utilisation Request has been delivered, shall be immediately cancelled at 10h00 on the last day of the Availability Period.

    6. REPAYMENT

    6.1 The Borrower shall repay the Senior Facility G Loan in full on the Final Maturity Date(subject to Clauses 7 (Prepayment and Cancellation) and 10 (Default)).

    6.2 Any amount which remains outstanding under Senior Facility G on the Final Maturity Date shall be repaid in full on that date.

    6.3 No amount of a Senior Facility G Loan repaid under this Clause 6 may be re-borrowed.

    7. PREPAYMENT AND CANCELLATION

    7.1 Voluntary cancellation

    7.1.1 The Borrower may cancel the unutilised and undrawn amount of the Senior Facility G Commitments in accordance with the requirements (and subject to the terms) of clause 7 (Prepayment and Cancellation) of the Common Terms Agreement.

    
        7

    

    

    7.1.2 No amount of the Senior Facility G Commitments cancelled pursuant to this Clause may be reinstated.

    7.2 Voluntary prepayment

    7.2.1 The Borrower may make voluntary prepayments in respect of the Senior Facility G Loan made to it, in whole or in part, in accordance with the requirements (and subject to the terms) of clause 7 (Prepayment and Cancellation) of the Common Terms Agreement.

    7.2.2 No amount of a Senior Facility G Loan prepaid pursuant to this Clause may be re-borrowed.

    7.3 Mandatory prepayment and prepayment offers

    The Borrower shall be obliged to make mandatory prepayments and/or offers to make prepayments (as applicable) in respect of the Senior Facility G Loan made to it to the Senior Facility G Lenders in accordance with the requirements (and subject to the terms) of clauses 7 (Prepayment and Cancellation) and 8 (Prepayment Offers and Priorities) of the Common Terms Agreement.

    8. INTEREST

    8.1 Calculation of interest

    The rate of interest on each Senior Facility G Loan (and any Unpaid Sum) for each Interest Period is the percentage rate per annum which is the aggregate of:

    8.1.1 the Applicable Margin; and

    8.1.2 the Base Rate.

    8.2 Payment of interest

    The Borrower shall pay all accrued interest on the Senior Facility G Loan made to it on each Interest Payment Date, in accordance with the requirements of clause 31 (Payment Mechanics) of the Common Terms Agreement.

    8.3 Interest on overdue amounts

    8.3.1 Any interest accruing on an Unpaid Sum shall be immediately payable by the Borrower on demand by the Facility Agent.

    8.3.2 Default interest (if unpaid) arising on any Unpaid Sum will be compounded with that Unpaid Sum on the last day of each calendar month, but will remain immediately due and payable.

    8.4 Notification of rates of interest

    Without prejudice to the obligation of the Borrower to pay interest calculated at any applicable rate under this Clause 8, the Facility Agent shall notify the Senior Facility G Lenders and the Borrower, as soon as reasonably practicable:

    8.4.1 of the determination of a rate of interest under this Agreement;

    8.4.2 when interest commences to accrue at the rate calculated by reference to the Applicable Margin specified in Clause 1.1.1(c) (Definitions).

    
        8

    

    

    9. INTEREST PERIODS

    9.1 Duration

    Each Senior Facility G Loan has successive Interest Periods:

    9.1.1 commencing on (and including) the Utilisation Date (in respect of the first Interest Period for that Senior Facility G Loan) or commencing on (and including) an Interest Payment Date; and

    9.1.2 ending on (but excluding) the next Interest Payment Date.

    9.2 Interest Periods for Unpaid Sums

    Interest accruing on an Unpaid Sum shall be calculated as if that Unpaid Sum, during the period of non-payment, constituted a Loan under Senior Facility G for successive Interest Periods, each of a duration selected by the Facility Agent (acting reasonably).  For this purpose, the Facility Agent (acting reasonably) may:

    9.2.1 select successive Interest Periods of any duration of up to three months; and

    9.2.2 determine the appropriate Quotation Day for that Interest Period.

    If any Unpaid Sum consists of all or part of the Senior Facility G Loan which became due on a day which was not the last day of an Interest Period relating to that Senior Facility G Loan, the first Interest Period for that Unpaid Sum shall have a duration equal to the unexpired portion of the current Interest Period relating to the Senior Facility G Loan.

    9.3 No overrunning the Final Maturity Date

    If an Interest Period for a Senior Facility G Loan would otherwise extend beyond the Final Maturity Date, it will be shortened so that it ends on the Final Maturity Date.  This Clause does not apply to Interest Periods selected under Clause 9.2 above in respect of Unpaid Sums which remain outstanding on the Final Maturity Date.

    9.4 Non-Business Days

    If an Interest Payment Date would otherwise occur on a day which is not a Business Day, that Interest Payment Date will instead be the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not).

    10. FEES

    10.1 Non-refundable Deal Origination Fee

    The Borrower shall pay to the Senior Facility G Lender a non-refundable deal origination fee in the amount and at the times agreed in a Fee Letter.

    11. DEFAULT

    If an Event of Default occurs, and for so long as it is continuing, the Facility Agent may enforce any of the rights and remedies provided for in clause 23.15 (Acceleration) of the Common Terms Agreement.

    12. TRIGGER EVENT

    If (a) on the Trigger Event Date the Trigger Event has occurred, or (b) if on any date a Financial Covenant Breach occurs, the Borrower and/or Holdco shall ensure the balance of the Secured Account is at least ZAR250,000,000 (or the USD equivalent of ZAR250,000,000 at the spot rate on that day) within 5 Business Days of the Trigger Event Date or the date on which the Financial Covenant Breach occurred.

    
        9

    

    

    13. DISCUSSION TRIGGER EVENTS

    13.1 The Borrower shall ensure that the Original South African Businesses meet the following hurdles on the Interest Payment Dates set out below:

    	
                 

            	
                31 March, 2022

            	
                30 June, 2022

            	
                30 September, 2022

            
	
                Number of EasyPay Everywhere accounts

            	
                990,000

            	
                1,040,000

            	
                1,100,000

            
	
                Quarterly EBITDA of the Original South African Businesses

            	
                -R11,200,000

            	
                R18,000,000

            	
                R22,500,000

            
	
                Receivables balance of Moneyline

            	
                R336,600,000

            	
                R351,900,000

            	
                R361,250,000

            
	
                 

            	
                31 December, 2022

            	
                31 March, 2023

            	
                30 June, 2023

            
	
                Number of EasyPay Everywhere accounts

            	
                1,170,000

            	
                1,230,000

            	
                1,320,000

            
	
                Quarterly EBITDA of the Original South African Businesses

            	
                R40,700,000

            	
                R63,300,000

            	
                R82,700,000

            
	
                Receivables balance of Moneyline

            	
                R377,400,000

            	
                R408,850,000

            	
                R423,725,000

            

    each a "Discussion Hurdle".

    13.2 With effect from 31 March, 2022, the Borrower shall set out compliance with each Discussion Hurdle within 75 days of each Interest Payment Date.

    13.3 If the Original South African Businesses do not meet a Discussion Hurdle on an Interest Payment Date, a "Discussion Trigger Event" shall occur.

    13.4 If a Discussion Trigger Event occurs, the Senior Facility G Lender shall have the right to discuss the business of the Group with management of any member of the Group and VCP.

    14. GENERAL

    14.1 Notices and domicilium

    All documents in legal proceedings and notices in connection with this Agreement shall be served in accordance with clause 34 (Notices) of the Common Terms Agreement, which clause is incorporated by reference in this Agreement as if repeated in this Agreement in full (except that references in that clause to the Common Terms Agreement are to be construed as references to this Agreement).

    14.2 Incorporation of by reference

    The provisions clauses 18 (Costs and Expenses), 35 (Amendments and Waivers), 37 (General Provisions) and 41 (Waiver of Immunity) of the Common Terms Agreement apply to this Agreement as though they were set out in full in this Agreement (except that references in those clauses to the Common Terms Agreement are to be construed as references to this Agreement).

    
        10

    

    

    14.3 Governing Law

    This Agreement and any non-contractual obligations arising out of or in connection with it are governed by South African law.

    14.4 Jurisdiction

    14.4.1 The Parties hereby irrevocably and unconditionally consent to the non-exclusive jurisdiction of the High Court of South Africa (Gauteng Local Division, Johannesburg) (or any successor to that division) in regard to all matters arising from this Agreement (including a dispute relating to the existence, validity or termination of this Agreement or any non-contractual obligation arising out of or in connection with this Agreement) (a dispute).

    14.4.2 The Parties agree that the High Court of South Africa is the most appropriate and convenient court to settle disputes.  The Parties agree not to argue to the contrary and waive objection to this court on the grounds of inconvenient forum or otherwise in relation to proceedings in connection with this Agreement.

    14.4.3 This Clause 14.4 is for the benefit of the Finance Parties only.  As a result, no Finance Party shall be prevented from taking proceedings relating to a dispute in any other court with jurisdiction.  To the extent allowed by law, a Finance Party may take concurrent proceedings in any number of jurisdictions.

    14.5 Counterparts

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

    THIS AGREEMENT has been entered into on the date stated at the beginning of this Agreement.

    
        11

    

    

    SCHEDULE 1

    FORM OF UTILISATION REQUEST

    To: [●] (as Facility Agent)

    From: NET1 APPLIED TECHNOLOGIES SOUTH AFRICA PROPRIETARY LIMITED

    [⬤], [⬤]

    Dear Sirs,

    NET1 APPLIED TECHNOLOGIES SOUTH AFRICA PROPRIETARY LIMITED 
Senior Facility G Agreement, dated [●], 2022
(the Agreement)

    1. We refer to the Agreement.  This is a Utilisation Request.  Terms defined in the Agreement have the same meaning in this Utilisation Request unless given a different meaning in this Utilisation Request.

    2. We wish to borrow a Senior Facility G Loan on the following terms:

    	
                Proposed Utilisation Date:

            	
                [●] (or, if that is not a Business Day, the next Business Day)

            
	 	 
	
                Amount:

            	
                R[●] or, if less, the Available Facility

            

    3. The proceeds of this Loan must be credited to [account].

    4. We confirm that each condition specified in Clause 4.2 (Further conditions precedent) of the Agreement is satisfied on the date of this Utilisation Request.

    5. This Utilisation Request is irrevocable.

    Yours faithfully,

     

    .......................................

    authorised signatory for

    NET1 APPLIED TECHNOLOGIES SOUTH AFRICA PROPRIETARY LIMITED

    
        12

    

    

    SIGNATURE PAGE

    BORROWER

     

    	/s/ Alex Smith
	
                For and on behalf of:

                Net1 Applied Technologies South Africa 
Proprietary Limited

            
	 	 
	
                Name:

            	
                Alex Smith

            
	 	 
	
                Office:

            	
                Director

            
	 	 
	
                 

            	
                (who warrants his authority)

            

    

    

    SIGNATURE PAGE

    FACILITY AGENT

     

    	/s/Kedi Mazibuko	 	   /s/ Kayleigh Spurway
	
                For and on behalf of:

                FirstRand Bank Limited (acting through
its Rand Merchant Bank division)

            	
                 

            	
                For and on behalf of:

                FirstRand Bank Limited (acting through 
its Rand Merchant Bank division)

            
	 	 	 	 	 
	
                Name:

            	
                Kedi Mazibuko

            	
                 

            	
                Name:

            	
                Kayleigh Spurway

            
	 	 	 	 	 
	
                Office:

            	
                Authorised

            	
                 

            	
                Office:

            	
                Authorised

            
	 	 	 	 	 
	
                 

            	
                (who warrants his authority)

            	
                 

            	
                 

            	
                (who warrants his authority)

            

    

    

    SIGNATURE PAGE

    ORIGINAL SENIOR FACILITY G LENDER

     

    	/s/Kedi Mazibuko	 	   /s/ Kayleigh Spurway
	
                For and on behalf of:

                FirstRand Bank Limited (acting through 
its Rand Merchant Bank division)

            	
                 

            	
                For and on behalf of:

                FirstRand Bank Limited (acting through 
its Rand Merchant Bank division)

            
	 	 	 	 	 
	
                Name:

            	
                Kedi Mazibuko

            	
                 

            	
                Name:

            	
                Kayleigh Spurway

            
	 	 	 	 	 
	
                Office:

            	
                Authorised

            	
                 

            	
                Office:

            	
                Authorised

            
	 	 	 	 	 
	
                 

            	
                (who warrants his authority)

            	
                 

            	
                 

            	
                (who warrants his authority)Net 1 UEPS Technologies, Inc.: Exhibit 10.3 - Filed by newsfilecorp.com

    

    EXHIBIT 10.3

    EXECUTION

    SENIOR FACILITY H AGREEMENT

     

     

    DATED 24 JANUARY, 2022

     

     

    R350,000,000 SENIOR TERM LOAN FACILITY

     

     

    for

     

     

    NET1 APPLIED TECHNOLOGIES SOUTH AFRICA PROPRIETARY LIMITED

    (as borrower)

     

    provided by

     

     

    FIRSTRAND BANK LIMITED
(ACTING THROUGH ITS RAND MERCHANT BANK DIVISION)
(as lender)

     

     

    with

     

     

    FIRSTRAND BANK LIMITED
(ACTING THROUGH ITS RAND MERCHANT BANK DIVISION)
(as facility agent)

     

     

     

     

    	This Agreement is entered into subject to the terms of a Common Terms Agreement
dated on or about the date of this Agreement

     

    

     

    

    

    CONTENTS

    	
                Clause

            	
                Page

            
	 	 	 
	1.	Definitions and Interpretation	3
	2.	The Facility	5
	3.	Purpose	5
	4.	Conditions of Utilisation	5
	5.	Utilisation and Disbursement	6
	6.	Repayment	7
	7.	Prepayment and Cancellation	7
	8.	Interest	8
	9.	Interest Periods	8
	10.	Fees	9
	11.	Financial definitions	9
	12.	Default	10
	13.	Net1 Market Price Discussion Trigger Event	10
	14.	General	10
	Schedule 1 Form of Utilisation Request	12

    

    THIS AGREEMENT is made between:

    (1) NET1 APPLIED TECHNOLOGIES SOUTH AFRICA PROPRIETARY LIMITED, registration number 2002/031446/07, as borrower (the Borrower);

    (2) FIRSTRAND BANK LIMITED (ACTING THROUGH ITS RAND MERCHANT BANK DIVISION) as original lender (in this capacity, the Original Senior Facility H Lender); and

    (3) FIRSTRAND BANK LIMITED (ACTING THROUGH ITS RAND MERCHANT BANK DIVISION) as agent of the Senior Facility H Lenders (the Facility Agent).

    IT IS AGREED as follows:

    1. DEFINITIONS AND INTERPRETATION

    1.1 Definitions

    In this Agreement:

    1.1.1 Applicable Margin means, in relation to any Senior Facility H Loan or Unpaid Sum:

    (a) 2.00 per cent. per annum, provided that no Event of Default has occurred and is continuing; and

    (b) with effect from the date of occurrence of an Event of Default and for so long as it is continuing, the Applicable Margin shall be the percentage per annum set out in paragraph (a) above, as applicable, plus 2.00 per cent.

    1.1.2 Availability Period means the period from and including the Fourth Amendment and Restatement Date to and including the date falling one month from the Fourth Amendment and Restatement Date.

    1.1.3 Available Commitment means the "Available Commitment" (as defined in the Common Terms Agreement) of a Senior Facility H Lender in respect of Senior Facility H.

    1.1.4 Available Facility means the aggregate, from time to time, of the Available Commitment of each Senior Facility H Lender.

    1.1.5 Break Costs means the amount (if any) determined by a Senior Facility H Lender by which:

    (a) the interest (excluding the Applicable Margin) which that Senior Facility H Lender should have received for the period from the date of receipt of an amount repaid or prepaid in respect of any part of its participation in a Senior Facility H Loan or Unpaid Sum to the last day of the current Interest Period for that Senior Facility H Loan or Unpaid Sum, if the principal amount of that Senior Facility H Loan or Unpaid Sum received had been paid on the last day of that Interest Period;

    exceeds:

    (b) the amount which that Senior Facility H Lender would be able to obtain by placing an amount equal to the principal amount of the Senior Facility H Loan or Unpaid Sum received by it on deposit with a leading bank in the Johannesburg interbank market for a period starting on the Business Day following receipt or recovery and ending on the last day of the current Interest Period,

    
        3

    

    

    and Break Gains means the amount (if any) determined by the relevant Senior Facility H Lender by which the amount of interest contemplated in paragraph (b) above exceeds that in paragraph (a) above.

    1.1.6 Common Terms Agreement means the written agreement entitled "Common Terms Agreement", dated on or about 21 July, 2017 (as amended and/or reinstated from time to time), between, amongst others, the Borrower (as borrower), the Original Senior Facility H Lenders (as lenders) and the Facility Agent.

    1.1.7 Final Maturity Date means the date occurring 18 months after the first Utilisation Date.

    1.1.8 Interest Payment Date means:

    (a) the last day of March, June, September and December in any year; and

    (b) the Final Maturity Date.

    1.1.9 Interest Period means, in relation to a Senior Facility H Loan, each period determined in accordance with Clause 9 (Interest Periods).

    1.1.10 Net1 Market Price Discussion Trigger Event means the market capitalisation of Holdco on the NASDAQ Stock Market (based on the closing price on the NASDAQ Stock Market) on any day falls below the USD equivalent of ZAR3,250,000,000.

    1.1.11 Net1 Market Price Trigger Event means the market capitalisation of Holdco on the NASDAQ Stock Market (based on the closing price on the NASDAQ Stock Market) falls and remains below the USD equivalent of ZAR2,600,000,000 on more than one day between the first Utilisation Date and the Final Discharge Date.

    1.1.12 Party means a party to this Agreement.

    1.1.13 Senior Facility H or Facility means the term loan facility made available to the Borrower under this Agreement.

    1.1.14 Senior Facility H Commitment means the "Senior Facility H Commitment" as defined in the Common Terms Agreement.

    1.1.15 Senior Facility H Loan or Loan means a "Senior Facility H Loan" as defined in the Common Terms Agreement.

    1.1.16 Senior Facility H Outstandings means "Senior Facility H Outstandings" as defined in the Common Terms Agreement.

    1.1.17 Signature Date means the date stated at the beginning of this Agreement.

    1.1.18 Total Senior Facility H Commitments means "Total Senior Facility H Commitments" as defined in the Common Terms Agreement.

    1.1.19 Unpaid Sum means an "Unpaid Sum" as defined in the Common Terms Agreement in respect of Senior Facility H.

    1.1.20 Utilisation Request means the notice substantially in the form set out in Schedule 1 (Form of Utilisation Request).

    1.1.21 VCP Investment Fund means the Value Capital Partners H4 QI Hedge Fund Portfolio.

    
        4

    

    

    1.1.22 VCP Investment Manager means Value Capital Partners Proprietary Limited (registration number 2016/242305/07), a company registered under the laws of South Africa.

    1.1.23 VCP Manco means H4 Collective Investments (RF) Proprietary Limited (registration number 2002/009140/07), a company registered under the laws of South Africa.

    1.2 Construction

    1.2.1 Terms and expressions defined in the Common Terms Agreement, unless expressly defined in this Agreement, have the same meaning in this Agreement.

    1.2.2 The provisions of clauses 1.3 (Construction) and 1.4 (Third party rights) of the Common Terms Agreement apply to this Agreement as though they were set out in full in this Agreement, except that a reference in those clauses to the Common Terms Agreement are to be construed as references to this Agreement.

    1.2.3 This Agreement and the rights and obligations of the Parties hereunder shall in all respects be subject to the terms and conditions of the Common Terms Agreement, which shall apply mutatis mutandis to this Agreement and be incorporated herein by reference.  If there is any conflict between this Agreement and the Common Terms Agreement, this Agreement shall prevail.

    2. THE FACILITY

    2.1 Senior Facility H

    Subject to the terms of this Agreement and the Common Terms Agreement, the Senior Facility H Lenders make available to the Borrower a Rand-denominated term loan facility in an aggregate amount equal to the Total Senior Facility H Commitments.

    2.2 Designation

    This Agreement is a Senior Facility Agreement and the Senior Facility H Agreement, each as defined in the Common Terms Agreement.

    3. PURPOSE

    3.1 The Borrower shall apply all amounts borrowed by it under Senior Facility H only in or towards the purpose set out in clause 3.1.3 (Purpose) of the Common Terms Agreement, and for no other purpose whatsoever.

    3.2 No Finance Party is bound to monitor or verify the utilisation of Senior Facility H or will be responsible for, or for the consequences of, such a utilisation.

    4. CONDITIONS OF UTILISATION

    4.1 Conditions precedent

    The Borrower may not deliver a Utilisation Request to the Facility Agent under Senior Facility H (and no Senior Facility H Lender shall have any obligation to advance any Senior Facility H Loan or to provide any other form of credit or financial accommodation under this Agreement to any person) unless the Facility Agent has issued the notice contemplated by clause 4.1 (Initial conditions precedent) of the Common Terms Agreement.

    
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    4.2 Further conditions precedent

    Subject to the Common Terms Agreement and this Agreement, a Senior Facility H Lender will only be obliged to participate in a Senior Facility H Loan if the requirements of clause 4.2 (Further conditions precedent) of the Common Terms Agreement have been met.

    4.3 Maximum number of Loans

    The Borrower may not deliver a Utilisation Request under Senior Facility H if as a result of the proposed Utilisation more than one Senior Facility H Loan would be outstanding.

    5. UTILISATION AND DISBURSEMENT

    5.1 Delivery of a Utilisation Request

    5.1.1 The Borrower may utilise Senior Facility H during the Availability Period by delivery to the Facility Agent of a duly completed Utilisation Request.

    5.1.2 Unless the Facility Agent otherwise agrees, the latest time for receipt by the Facility Agent of a Utilisation Request is 17h00 two Business Days before the proposed Utilisation Date or such shorter period as the Facility Agent agrees in writing.

    5.1.3 A Utilisation Request is irrevocable.

    5.1.4 A maximum of one Utilisation Request may be delivered by the Borrower on or following the Fourth Amendment and Restatement Date.

    5.2 Completion of a Utilisation Request

    5.2.1 A Utilisation Request will not be regarded as having been duly completed unless:

    (a) the proposed Utilisation Date is a Business Day within the Availability Period;

    (b) the currency and amount of the Utilisation comply with Clause 5.3 below; and

    (c) it specifies a bank account in South Africa to which the Borrower requires the proceeds of the Senior Facility H Loan to be credited.

    5.2.2 Only one Senior Facility H Loan may be requested in a Utilisation Request.

    5.3 Currency and amount

    5.3.1 The currency specified in a Utilisation Request must be Rand.

    5.3.2 The amount of the proposed Senior Facility H Loan is for the full amount of the Senior Facility H Available Commitments of the relevant Senior Facility H Lender or such lesser amount as the Facility Agent may agree.

    5.4 Disbursement

    5.4.1 If the conditions set out in this Agreement and the Common Terms Agreement have been met, each Senior Facility H Lender must advance and lend to the Borrower, who shall borrow from each such Lender, that Lender's participation in the Senior Facility H Loan on the Utilisation Date.  A Senior Facility H Lender must make its participation in the Senior Facility H Loan available to the Facility Agent by no later than 11h00 on the applicable Utilisation Date for disbursement to the Borrower.

    
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    5.4.2 The amount of each Senior Facility H Lender's participation in the Senior Facility H Loan will be equal to the proportion borne by its Available Commitment (if any) to the Available Facility immediately prior to making the Loan.

    5.4.3 No Senior Facility H Lender is obliged to participate in a Senior Facility H Loan if, as a result:

    (a) its share in the outstanding Senior Facility H Loan would exceed its Available Commitment; or

    (b) the outstanding Senior Facility H Loan would exceed the Available Facility.

    5.5 Automatic cancellation of Commitments

    The Senior Facility H Commitments which, at that time, are unutilised, and in respect of which no Utilisation Request has been delivered, shall be immediately cancelled at 10h00 on the last day of the Availability Period.

    6. REPAYMENT

    6.1 The Borrower shall repay the Senior Facility H Loan in full on the Final Maturity Date (subject to Clauses 7 (Prepayment and Cancellation) and 12 (Default)).

    6.2 Any amount which remains outstanding under Senior Facility H on the Final Maturity Date shall be repaid in full on that date.

    6.3 No amount of a Senior Facility H Loan repaid under this Clause 6 may be re-borrowed.

    7. PREPAYMENT AND CANCELLATION

    7.1 Voluntary cancellation

    7.1.1 The Borrower may cancel the unutilised and undrawn amount of the Senior Facility H Commitments in accordance with the requirements (and subject to the terms) of clause 7 (Prepayment and Cancellation) of the Common Terms Agreement.

    7.1.2 No amount of the Senior Facility H Commitments cancelled pursuant to this Clause may be reinstated.

    7.2 Voluntary prepayment

    7.2.1 The Borrower may make voluntary prepayments in respect of the Senior Facility H Loan made to it, in whole or in part, in accordance with the requirements (and subject to the terms) of clause 7 (Prepayment and Cancellation) of the Common Terms Agreement.

    7.2.2 No amount of a Senior Facility H Loan prepaid pursuant to this Clause may be re-borrowed.

    7.3 Mandatory prepayment and prepayment offers

    The Borrower shall be obliged to make mandatory prepayments and/or offers to make prepayments (as applicable) in respect of the Senior Facility H Loan made to it to the Senior Facility H Lenders in accordance with the requirements (and subject to the terms) of clauses 7 (Prepayment and Cancellation) and 8 (Prepayment Offers and Priorities) of the Common Terms Agreement.

    
        7

    

    

    8. INTEREST

    8.1 Calculation of interest

    The rate of interest on each Senior Facility H Loan (and any Unpaid Sum) for each Interest Period is the percentage rate per annum which is the aggregate of:

    8.1.1 the Applicable Margin; and

    8.1.2 the Base Rate.

    8.2 Payment of interest

    The Borrower shall pay all accrued interest on the Senior Facility H Loan made to it on each Interest Payment Date, in accordance with the requirements of clause 31 (Payment Mechanics) of the Common Terms Agreement.

    8.3 Interest on overdue amounts

    8.3.1 Any interest accruing on an Unpaid Sum shall be immediately payable by the Borrower on demand by the Facility Agent.

    8.3.2 Default interest (if unpaid) arising on any Unpaid Sum will be compounded with that Unpaid Sum on the last day of each calendar month, but will remain immediately due and payable.

    8.4 Notification of rates of interest

    Without prejudice to the obligation of the Borrower to pay interest calculated at any applicable rate under this Clause 8, the Facility Agent shall notify the Senior Facility H Lenders and the Borrower, as soon as reasonably practicable:

    8.4.1 of the determination of a rate of interest under this Agreement;

    8.4.2 when interest commences to accrue at the rate calculated by reference to the Applicable Margin specified in Clause 1.1.1(b)(Definitions).

    9. INTEREST PERIODS

    9.1 Duration

    Each Senior Facility H Loan has successive Interest Periods:

    9.1.1 commencing on (and including) the Utilisation Date (in respect of the first Interest Period for that Senior Facility H Loan) or commencing on (and including) an Interest Payment Date; and

    9.1.2 ending on (but excluding) the next Interest Payment Date.

    9.2 Interest Periods for Unpaid Sums

    Interest accruing on an Unpaid Sum shall be calculated as if that Unpaid Sum, during the period of non-payment, constituted a Loan under Senior Facility H for successive Interest Periods, each of a duration selected by the Facility Agent (acting reasonably).  For this purpose, the Facility Agent (acting reasonably) may:

    9.2.1 select successive Interest Periods of any duration of up to three months; and

    9.2.2 determine the appropriate Quotation Day for that Interest Period.

    
        8

    

    

    If any Unpaid Sum consists of all or part of the Senior Facility H Loan which became due on a day which was not the last day of an Interest Period relating to that Senior Facility H Loan, the first Interest Period for that Unpaid Sum shall have a duration equal to the unexpired portion of the current Interest Period relating to the Senior Facility H Loan.

    9.3 No overrunning the Final Maturity Date

    If an Interest Period for a Senior Facility H Loan would otherwise extend beyond the Final Maturity Date, it will be shortened so that it ends on the Final Maturity Date.  This Clause does not apply to Interest Periods selected under Clause 9.2 above in respect of Unpaid Sums which remain outstanding on the Final Maturity Date.

    9.4 Non-Business Days

    If an Interest Payment Date would otherwise occur on a day which is not a Business Day, that Interest Payment Date will instead be the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not).

    10. FEES

    10.1 Non-refundable Deal Origination Fee

    The Borrower shall pay to the Senior Facility H Lender a non-refundable deal origination fee in the amount and at the times agreed in a Fee Letter.

    11. FINANCIAL DEFINITIONS

    11.1 Definitions

    In this Clause 11, the following terms have the meanings set out below:

    11.1.1 Measurement Date means the last day of March, June, September and December of each year.

    11.1.2 Total VCP Investment Fund Net Asset Value, at any time, means the aggregate of the "value" of the assets of the VCP Investment Fund at that time, determined in accordance with the valuation policy adopted by VCP Manco in respect of VCP Investment Fund or as otherwise agreed between the Borrower and the Facility Agent less the VCP Consolidated Total Borrowings at that time.

    11.1.3 VCP Asset Cover Ratio in relation to the VCP Investment Funds, at any time, means the ratio borne by (x) the Total VCP Investment Fund Net Asset Value to (y) the Senior Facility H Outstandings.

    11.1.4 VCP Compliance Certificate means a certificate delivered by the VCP Investment Manager setting out the VCP Asset Cover Ratio pursuant to Clause 11.3.

    11.1.5 VCP Consolidated Total Borrowings in respect of the VCP Investment Fund, at any time, means, without double counting, the aggregate at that time of the Financial Indebtedness of the VCP Investment Fund calculated at its nominal or principal amount or, if greater, the maximum amount payable on scheduled repayment or scheduled redemption of the relevant liabilities.

    11.2 VCP Asset Cover Ratio

    The VCP Asset Cover Ratio for any Measurement Period shall not fall below 5.00 : 1.

    
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    11.3 VCP Compliance Certificate

    11.3.1 The Borrower shall procure that the VCP Investment Manager delivers to the Facility Agent a VCP Compliance Certificate issued by the VCP Investment Manager on behalf of the VCP Investment Funds and addressed to the Lender on or before the date occurring no later than 60 days the after the applicable Measurement Date.

    11.3.2 Each VCP Compliance Certificate delivered by the VCP Investment Manager shall: set out (in reasonable detail) computations as to compliance with Clause 11.2 (VCP Asset Cover Ratio) for the applicable Measurement Date and shall be signed by two directors of the VCP Investment Manager.

    11.3.3 The failure of the VCP Investment Manager to deliver a VCP Compliance Certificate shall constitute an Event of Default.

    12. DEFAULT

    If an Event of Default occurs, and for so long as it is continuing, the Facility Agent may enforce any of the rights and remedies provided for in clause 23.15 (Acceleration) of the Common Terms Agreement.

    13. NET1 MARKET PRICE DISCUSSION TRIGGER EVENT

    If a Net1 Market Price Discussion Trigger Event occurs, the Senior Facility H Lender shall have the right to discuss the capitalisation of the Group with management of any member of the Group and VCP.

    14. GENERAL

    14.1 Notices and domicilium

    All documents in legal proceedings and notices in connection with this Agreement shall be served in accordance with clause 34 (Notices) of the Common Terms Agreement, which clause is incorporated by reference in this Agreement as if repeated in this Agreement in full (except that references in that clause to the Common Terms Agreement are to be construed as references to this Agreement).

    14.2 Incorporation of by reference

    The provisions clauses 17 (Costs and Expenses), 35 (Amendments and Waivers), 37 (General Provisions) and 41 (Waiver of Immunity) of the Common Terms Agreement apply to this Agreement as though they were set out in full in this Agreement (except that references in those clauses to the Common Terms Agreement are to be construed as references to this Agreement).

    14.3 Governing Law

    This Agreement and any non-contractual obligations arising out of or in connection with it are governed by South African law.

    14.4 Jurisdiction

    14.4.1 The Parties hereby irrevocably and unconditionally consent to the non-exclusive jurisdiction of the High Court of South Africa (Gauteng Local Division, Johannesburg) (or any successor to that division) in regard to all matters arising from this Agreement (including a dispute relating to the existence, validity or termination of this Agreement or any non-contractual obligation arising out of or in connection with this Agreement) (a dispute).

    
        10

    

    

    14.4.2 The Parties agree that the High Court of South Africa is the most appropriate and convenient court to settle disputes.  The Parties agree not to argue to the contrary and waive objection to this court on the grounds of inconvenient forum or otherwise in relation to proceedings in connection with this Agreement.

    14.4.3 This Clause 14.4 is for the benefit of the Finance Parties only.  As a result, no Finance Party shall be prevented from taking proceedings relating to a dispute in any other court with jurisdiction.  To the extent allowed by law, a Finance Party may take concurrent proceedings in any number of jurisdictions.

    14.5 Counterparts

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

    THIS AGREEMENT has been entered into on the date stated at the beginning of this Agreement.

    
        11

    

    

    SCHEDULE 1

    FORM OF UTILISATION REQUEST

    To: [●]

    as Facility Agent

    From: NET1 APPLIED TECHNOLOGIES SOUTH AFRICA PROPRIETARY LIMITED

    [⬤], [⬤]

    Dear Sirs,

    NET1 APPLIED TECHNOLOGIES SOUTH AFRICA PROPRIETARY LIMITED 
Senior Facility H Agreement, dated [●], 2022
(the Agreement)

    1. We refer to the Agreement.  This is a Utilisation Request.  Terms defined in the Agreement have the same meaning in this Utilisation Request unless given a different meaning in this Utilisation Request.

    2. We wish to borrow a Senior Facility H Loan on the following terms:

    	
                Proposed Utilisation Date:

            	
                [●] (or, if that is not a Business Day, the next Business Day)

            
	 	 
	
                Amount:

            	
                R[●] or, if less, the Available Facility

            

    3. The proceeds of this Loan must be credited to [account].

    4. We confirm that each condition specified in Clause 4.2 (Further conditions precedent) of the Agreement is satisfied on the date of this Utilisation Request.

    5. This Utilisation Request is irrevocable.

    Yours faithfully,

     

    .......................................

    authorised signatory for

    NET1 APPLIED TECHNOLOGIES SOUTH AFRICA PROPRIETARY LIMITED

    
        12

    

    

    SIGNATURE PAGE

    BORROWER

     

    	/s/ Alex Smith
	
                For and on behalf of:

                Net1 Applied Technologies South Africa 
Proprietary Limited

            
	 	 
	
                Name:

            	
                Alex Smith

            
	 	 
	
                Office:

            	
                Director

            
	 	 
	
                 

            	
                (who warrants his authority)

            

    

    

    SIGNATURE PAGE

     

    SIGNATURE PAGE

    FACILITY AGENT

     

    	/s/Kedi Mazibuko	 	   /s/ Kayleigh Spurway
	
                For and on behalf of:

                FirstRand Bank Limited (acting through
its Rand Merchant Bank division)

            	
                 

            	
                For and on behalf of:

                FirstRand Bank Limited (acting through 
its Rand Merchant Bank division)

            
	 	 	 	 	 
	
                Name:

            	
                Kedi Mazibuko

            	
                 

            	
                Name:

            	
                Kayleigh Spurway

            
	 	 	 	 	 
	
                Office:

            	
                Authorised

            	
                 

            	
                Office:

            	
                Authorised

            
	 	 	 	 	 
	
                 

            	
                (who warrants his authority)

            	
                 

            	
                 

            	
                (who warrants his authority)

            

    

    

    SIGNATURE PAGE

    ORIGINAL SENIOR FACILITY G LENDER

     

    	/s/Kedi Mazibuko	 	    /s/ Kayleigh Spurway
	
                For and on behalf of:

                FirstRand Bank Limited (acting through 
its Rand Merchant Bank division)

            	
                 

            	
                For and on behalf of:

                FirstRand Bank Limited (acting through 
its Rand Merchant Bank division)

            
	 	 	 	 	 
	
                Name:

            	
                Kedi Mazibuko

            	
                 

            	
                Name:

            	
                Kayleigh Spurway

            
	 	 	 	 	 
	
                Office:

            	
                Authorised

            	
                 

            	
                Office:

            	
                Authorised

            
	 	 	 	 	 
	
                 

            	
                (who warrants his authority)

            	
                 

            	
                 

            	
                (who warrants his authority)

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