Document:

Net 1 UEPS Technologies, Inc.: Exhibit 10.13 - Filed by newsfilecorp.com

Exhibit 10.13

3 March 2010

The Directors

  Net 1 Applied Technologies South Africa
Limited
4th Floor, President Place
Corner Jan Smuts and
Bolton Road 
Rosebank

Attention: Mr Herman Kotze

Dear Sirs

BANKING FACILITIES

Nedbank Limited (‘Nedbank’) is pleased to continue to
offer the banking facilities described below to Net 1 Applied Technologies
(South Africa) Limited, Cash Paymaster Services (Proprietary) Limited, Cash
Paymaster Services (Eastern Cape) (Proprietary) Limited, Sinqobile Security
Services Gauteng (Proprietary) Limited, Friedland 035 Investments (Proprietary)
Limited, Cash Paymaster Services (Northern Cape) (Proprietary) Limited, Cash
Paymaster Services (Northern) (Proprietary) Limited, Cash Paymaster Services
(Northwest) (Proprietary) Limited, Prism Holdings Limited, Prism Payment
Technologies (Proprietary) Limited, Easy Pay (Proprietary) Limited, Moneyline
Financial Services (Proprietary) Limited, Net1 Universal Electronic
Technological Solutions (Proprietary) Limited, RMT System (Proprietary) Limited
and Cash Paymaster Services (Kwa-Zulu Natal) (Proprietary) Limited (collectively
referred to as ‘the Borrower’ or, if the context is appropriate, any one or more
of them) on the terms and conditions contained herein.

For purposes of interpretation, this offer letter (‘Offer
Letter’), read together with the general facility provisions (including
sections 1 and 2) (‘General Provisions’) attached hereto shall be
referred to as the ‘Facility Letter’.

	1 	
      AGGREGATE AMOUNT OF FACILITIES

	 	 
		
      R264 455 866,00 (two hundred and sixty four million four
      hundred and fifty five thousand eight hundred and sixty six
  rand).

	 	 
	2 	
      BORROWERS

	 	 
		
      Net 1 Applied Technologies (South Africa) Limited,
      Registration Number 2002/031446/06 (‘Net 1 Applied);

	 	 
		
      The following entities may share in the facilities
      referred to in clauses 3.1, 3.2, 3.3 and 3.4 below:

	 	 
		
      Cash Paymaster Services (Proprietary) Limited,
      Registration Number 1971/007195/07 (‘Cash
  Paymaster’);

Cash Paymaster Services (Eastern
Cape) (Proprietary) Limited, Registration Number 1998/000033/07 (‘Cash
Paymaster Eastern Cape’);

Cash Paymaster Services (Kwa-Zulu
Natal) (Proprietary) Limited, Registration Number 1997/013382/07 (‘Cash
Paymaster Kwa-Zulu Natal’);

Sinqobile Security Services Gauteng
(Proprietary) Limited, Registration Number 2000/003238/07 (‘Sinqobile
Security’);

Friedland 035 Investments
(Proprietary) Limited, Registration Number 2000/003245/07 (‘Friedland
035’);

Cash Paymaster Services (Northern
Cape) (Proprietary) Limited, Registration Number 1997/013358/07 (‘Cash
Paymaster Northern Cape’);

Cash Paymaster Services (Northern)
(Proprietary) Limited, Registration Number 1996/017600/07 (‘Cash
Paymaster Northern’);

Cash Paymaster Services (Northwest)
(Proprietary) Limited, Registration Number 1996/011197/07 (‘Cash
Paymaster Northwest’);

Prism Holdings Limited,
Registration Number 1998/018949/06 (‘Prism’);

Prism Payment Technologies
(Proprietary) Limited, Registration Number 1990/005062/07 (‘Prism
Payment’);

Easy Pay (Proprietary) Limited,
Registration Number 1983/008597/07 (‘Easy Pay’);

Moneyline Financial Services
(Proprietary) Limited, Registration Number 1998/020799/07 (‘Moneyline
Financial’);

Net1 Universal Electronic
Technological Solutions (Proprietary) Limited, Registration Number
2009/001034/07 (‘Net1 Universal’);

RMT Systems (Proprietary)
Limited, Registration Number 2001/028826/07 (‘RMT Systems’).

	3 	
      FACILITIES

	 	 
		
      In this Facility Letter all facilities and instruments
      described in this clause 3 shall collectively be referred to as the
      ‘Facilities’, and ‘facility’ or ‘instrument’ shall
      refer to any of them as suggested by the context.

	 	 
		 The terms and conditions contained in the Facility Letter
        are applicable to the Facilities and to the relevant instruments offered
        to the Borrower, provided however that, the Facilities referred to in
        3.2, 3.3, 3.4, 3.5.1 and 3.6.1 of the Offer Letter, shall be subject to
        additional specific terms and conditions contained in further separate
        agreements concluded or to be concluded between, inter alia, the
        Parties, as amended from time to time, and if there is any conflict between
        the provisions of the further separate agreements governing these Facilities
        and the terms and conditions of the Facility Letter, the provisions contained
        in the further separate agreements shall prevail.

	 	3.1 	
      Overdraft Facility

	 	 	 
	 		
      An overdraft facility for up to R250 000 000,00 (two
      hundred and fifty million rand), which may be availed of, subject to the
      provisions of this facility.

	 	 	 
	 	3.2 	
      Indirect Facilities

	 	 	 
	 		
      Letters of guarantee for up to R2 455 866,00 (two million
      four hundred and fifty five thousand eight hundred and sixty six rand),
      which may be availed of subject to the provisions of this
  facility.

	 	 	 
	 	3.3 	
      Sweeping Cash Management Facility

	 	 	 
	 		
      Cash Management

	 	 	 
	 		
      A sweeping cash management arrangement for an amount of
      R200 000 000,00 (two hundred million rand) may be included within the
      Facility as set out in clause 3.1 above.

	 	 	 
	 		
      The amount of R200 000 000,00 (two hundred million rand)
      represents the aggregate of the various overdraft limits recorded against
      various accounts in the names of Subsidiaries and/or divisions of some of
      those subsidiaries which participate in the Net 1 Applied Technologies
      (South Africa) Limited’s Clearing Account Cash Management (the
      ‘Individual Participants’), the operation of which is set out in
      separate documentation signed by Net 1 Applied Technologies (South Africa)
      Limited and the Individual Participants. In terms of the arrangements, the
      Borrower is Net 1 Applied Technologies (South Africa) Limited in respect
      of the aggregate debit balances less the aggregate credit balances,
      reflected as at the close of business each day.

	 	 	 
	 		
      It is understood that the limits of the Individual
      Participants are recorded for purposes of determining the total amount
      that is advanced to or by Net 1 Applied Technologies (South Africa)
      Limited in terms of the Cash Management Arrangement.

	 	 	 
	 		
      Net 1 Applied Technologies (South Africa) Limited shall
      procure that all the Individual Participants in this Cash Management
      structure are aware of their limits and that those limits are adhered to.
      It is hereby agreed that, in the event of any Individual Participant
      exceeding its limit without prior arrangements having been concluded, then
      Nedbank shall be entitled, after consultation with Net 1 Applied
      Technologies (South Africa) Limited, to take such measures as are deemed
      necessary to ensure that such limits are
observed.

	 		
      The limit of R200 000 000,00 (two hundred million rand)
      referred to above is recorded on the understanding that the net debit
      balance at the aggregate level of the Cash Management will not exceed R200
      000 000,00 (two hundred million rand) unless by prior arrangement with
      Nedbank.

	 	 	 	 
	 		
      Up to an amount of R200 000 000,00 (two hundred million
      rand) of any aggregate debit balance on the Cash Management shall attract
      interest at rates agreed to from time to time.

	 	 	 	 
	 	3.4 	
      Electronic Banking Facility

	 	 	 	 
	 		
      NetBank Business.

	 	 	 	 
	 	3.5 	
      Net 1 Applied

	 	 	 	 
	 		
      AMOUNT

	 	 	 	 
	 		
      R6 000 000,00 (six million rand)

	 	 	 	 
	 		3.5.1 	
      Derivative Facilities

	 	 	 	 
	 			
      Forward exchange contracts for up to R6 000 000,00 (six
      million rand), being 10% (ten percent) of the amount of the forward
      exchange contracts.

	 	 	 	 
	 	3.6 	
      Cash Paymaster

	 	 	 	 
	 		
      AMOUNT

	 	 	 	 
	 		
      R6 000 000,00 (six million rand).

	 	 	 	 
	 		3.6.1 	
      Derivative Facilities

	 	 	 	 
	 			
      Forward exchange contracts for up to R6 000 000,00 (six
      million rand), being 10% (ten percent) of the amount of the forward
      exchange contracts.

	4 	
      SECURITY HELD

	 	 	 
		
      Nedbank confirms that it holds the following Security for
      the Facilities, namely:

	 	 	 
		4.1 	
      a cross deed of suretyship on Nedbank’s standard terms
      and conditions given by:

	 	 	 
			 Net 1 Applied Technologies South Africa Limited; 

        Cash Paymaster Services (Proprietary) Limited;

			
      Cash Paymaster Services (KwaZulu Natal) (Proprietary)
      Limited; 
Cash Paymaster Services (Gauteng) (Proprietary) Limited;
      
Cash Paymaster Services (Northern) (Proprietary) Limited; 
Cash
      Paymaster Services (Northwest) (Proprietary) Limited; 
Cash Paymaster
      Services (Mpumalanga) (Proprietary) Limited;

	 	Cash Paymaster Services (Northern Cape) (Proprietary)
      Limited; 
	 	Cash Paymaster Services (Eastern Cape) (Proprietary)
      Limited; 
	 	Easy Pay (Proprietary) Limited; 
	 	Moneyline Financial Services (Proprietary) Limited;
    
	 	Net 1 Finance Holdings (Proprietary) Limited; 
	 	Prism Holdings Limited; 
	 	Prism Payment Technologies (Proprietary) Limited;
    
	 	Sinqobile Security Services Gauteng (Proprietary)
      Limited; 
	 	Siyeza Security Services (Proprietary) Limited;
    
	 	Friedland 035 Investments (Proprietary) Limited;
    
	 	Net1 Universal Electronic Technological Solutions
      (Proprietary) limited; 
	 	RMT Systems (Proprietary) Limited 
	 	(collectively referred to
        as ‘the sureties’ or, if the context is appropriate, any one
        or more of them) in terms of which each of the sureties binds itself as
        surety and co-principal debtor in solidum with each other for the
        due and punctual fulfilment by the other of them of all their obligations
        under the facility; 

	 	4.2 	
      a document in terms of which the Borrower agrees that any
      credit balances in any banking accounts held with Nedbank may be set off
      against the indebtedness of the Borrower to Nedbank under the facility
      from time to time;

	 	Net 1 Applied Technologies South Africa
      Limited; 
	 	Cash Paymaster Services (Proprietary) Limited;
    
	 	Cash Paymaster Services (KwaZulu Natal)
      (Proprietary) Limited; 
	 	Cash Paymaster Services (Northern)
      (Proprietary) Limited; 
	 	Cash Paymaster Services (Northwest)
      (Proprietary) Limited; 
	 	Cash Paymaster Services (Northern Cape)
      (Proprietary) Limited; 
	 	Cash Paymaster Services (Eastern Cape)
      (Proprietary) Limited; 
	 	Easy Pay (Proprietary) Limited; 
	 	Moneyline Financial Services (Proprietary)
      Limited; 
	 	Prism Holdings Limited; 
	 	Prism Payment Technologies (Proprietary)
      Limited; 
	 	Sinqobile Security Services Gauteng
      (Proprietary) Limited; 
	 	Friedland 035 Investments (Proprietary)
      Limited; 
	 	Net1 Universal Electronic Technological
      Solutions (Proprietary) limited; 
	 	RMT Systems (Proprietary) Limited.
  

	 	4.3 	
      a deed of cession in terms of which Cash Paymaster
      Services (Northern) (Proprietary) Limited cedes to Nedbank all of its
      right, title and interest in and to its debtors as security for the due
      and punctual fulfilment by Cash Paymaster Services (Northern)
      (Proprietary) Limited of all its obligations under the facility;

	 	 	 
	 	4.4 	
      a deed of cession in terms of which Cash Paymaster
      Services (Eastern Cape) (Proprietary) Limited cedes to Nedbank all of its
      right, title and interest in and to its debtors as security for the due
      and punctual fulfilment by Cash Paymaster Services (Eastern Cape) (Proprietary) Limited of all its
  obligations under the facility;

	 	4.5 	
      a deed of cession in terms of which Cash Paymaster
      Services (Gauteng) (Proprietary) Limited cedes to Nedbank all of its
      right, title and interest in and to its debtors as security for the due
      and punctual fulfilment by Cash Paymaster Services (Gauteng) (Proprietary)
      Limited of all its obligations under the facility;

	 	 	 
	 	4.6 	
      a deed of cession in terms of which Cash Paymaster
      Services (KwaZulu Natal) (Proprietary) Limited cedes to Nedbank all of its
      right, title and interest in and to its debtors as security for the due
      and punctual fulfilment by Cash Paymaster Services (KwaZulu Natal)
      (Proprietary) Limited of all its obligations under the facility;

	 	 	 
	 	4.7 	
      a deed of cession in terms of which Cash Paymaster
      Services (Mpumalanga) (Proprietary) Limited cedes to Nedbank all of its
      right, title and interest in and to its debtors as security for the due
      and punctual fulfilment by Cash Paymaster Services (Mpumalanga)
      (Proprietary) Limited of all its obligations under the facility;

	 	 	 
	 	4.8 	
      a deed of cession in terms of which Cash Paymaster
      Services (Northern Cape) (Proprietary) Limited cedes to Nedbank all of its
      right, title and interest in and to its debtors as security for the due
      and punctual fulfilment by Cash Paymaster Services (Northern Cape)
      (Proprietary) Limited of all its obligations under the facility;

	 	 	 
	 	4.9 	
      a deed of cession in terms of which Cash Paymaster
      Services (Northwest) (Proprietary) Limited cedes to Nedbank all of its
      right, title and interest in and to its debtors as security for the due
      and punctual fulfilment by Cash Paymaster Services (Northwest)
      (Proprietary) Limited of all its obligations under the facility;

	 	 	 
	 	4.10 	
      a deed of cession in terms of which Friedland 035
      Investments (Proprietary) Limited cedes to Nedbank all of its right, title
      and interest in and to its debtors as security for the due and punctual
      fulfilment by Friedland 035 Investments (Proprietary) Limited of all its
      obligations under the facility,

	 	 	 
	 	4.11 	
      a deed of cession and pledge in terms of which Net 1
      Applied cedes to Nedbank all of its right, title and interest in and to
      its entire shareholding in Cash Paymaster as security for the due and
      punctual fulfilment by Net 1 Applied of all its obligations under the
      facility.

	 	 	 
	 	4.12 	
      a deed of cession in terms of which Sinqobile Security
      Services Gauteng (Proprietary) Limited cedes to Nedbank all of its right,
      title and interest in and to its debtors as security for the due and
      punctual fulfilment of all its obligations under the
  facility;

		
4.13 		
a deed of cession in terms of which Siyeza Security Services (Proprietary) Limited cedes to Nedbank all of its right, title and interest in and to its debtors as security for the due and punctual fulfilment of all its obligations
under the facility.

	
	 	 	 	 
	
5 		
SUSPENSIVE CONDITIONS

	
	 	 	 	 
		
5.1 		
Save for the provisions of this clause 5 and of clauses 1, 13, 14, 15, 16, and 18 of the General Provisions, which shall be of immediate force and effect upon signature by the Borrower of this Facility Letter, the making available
of the Facilities to the Borrower is subject to the suspensive condition that all of the following documents be furnished to Nedbank, in a form and substance acceptable to Nedbank and that they have become unconditional in accordance with their own
terms:

	
	 	 	 	 
			
5.1.1 		
the Borrower has complied with all requests for information made by Nedbank in terms of the Financial Intelligence Centre Act, No 38 of 2001, the Prevention of Organised Crime Act, No 121 of 1998, the Banks Act and any other money
laundering legislation applicable at the time such requests are made;

	
	 	 	 	 
			
5.1.2 		
the Borrower has complied with the provisions of the National Credit Act, No 34 of 2005, where applicable;

	
	 	 	 	 
		
5.2 		
Forthwith after the acceptance of this Offer, the Borrower shall use its best endeavours to procure the fulfilment at its cost, of the conditions referred to in clause 5.

	
	 	 	 	 
		
5.3 		
Unless the conditions are fulfilled or waived in writing by not later than 30 April 2010 the provisions of this clause 5 and of clauses 1, 13, 14, 15, 16 and 18 of the General Provisions shall continue to be of force or
effect, but the remainder of this Facility Letter shall never become effective.

	
	 	 	 	 
		
5.4 		
The conditions in clause 5 have been stipulated for the benefit of Nedbank and Nedbank shall accordingly be entitled to waive fulfilment of all or any part of such conditions by giving written notice to that effect to the Borrower
prior to the date stated in clause 5.3 of this Offer Letter.

	

	
6 		
FEES

	
	 	 	 
		
Commitment fee

	
	 	 	 
		
6.1 		
Nedbank shall be entitled to charge a commitment fee at the rate advised to the Borrower from time to time, which fee shall be calculated on the average monthly unutilised portion of the Overdraft Facility referred to in clause
3.1 above. Such fee shall be payable by the Borrower monthly in arrear by means of a debit entry to the current account of the Borrower and Nedbank shall provide to the Borrower an invoice in respect thereof

	

		6.2 	
      The commitment fee which shall prevail from the Signature
      Date shall be 35 (thirty five) basis points per annum until further notice
      by Nedbank in respect thereof.

	 	 	 	 
	7 	
      UNDERTAKINGS

	 	 	 	 
		
      In addition to the undertakings given in clause 10 of the
      General Provisions, the Borrower undertakes to:

	 	 	 	 
		7.1 	
      furnish Nedbank with

	 	 	 	 
			7.1.1 	
      audited annual company and consolidated Financial
      Statements of the Borrower and any Security Provider as soon as they
      become available but in any event within 180 (one hundred and eighty) days
      after the end of each financial year;

	 	 	 	 
			7.1.2 	
      all other financial information with which a shareholder
      is entitled to be furnished by the Borrower and any Security Provider,
      within 30 (thirty) days after such information has become available to the
      Borrower or any such Security Provider.

	8 	
      NOMINATION

	 	 	 
		
      The Borrower may, with the prior written consent of
      Nedbank, nominate any of its Subsidiaries to utilise all or part of the
      Facilities. The Borrower undertakes to advise Nedbank in writing of the
      name of such Subsidiary and the amount under the Facilities the Borrower
      wishes to allocate to it. Any such nomination by the Borrower shall be
      subject to the Borrower binding itself in writing as surety for and
      co-principal debtor in solidum with the Subsidiary for the due and
      punctual fulfilment by the Subsidiary of all of its obligations under the
      Facilities, which suretyship shall be in a form and substance acceptable
      to Nedbank.

	 	 	 
	9 	
      DOMICILIUM CITANDI ET EXECUTANDI

	 	 	 
		9.1 	
      The Parties choose the addresses set out opposite their
      names below as their domicilium citandi et executandi (whether in respect
      of notices, court processes or any other documents or communications of
      whatsoever nature) for all purposes of this Facility Letter:

	 	 	 
			
      9.1.1 
	 Nedbank

	 	 Physical: 	135 Rivonia Road 
	 	 	Corporate Place Block F 
	 	 	Sandown 
	 	 	Sandton 
	 	 	2196. 

	 	Postal: 	PO Box 1144 
	 	  	Johannesburg 
	 	  	2000 
	 	Fax: 	(011) 294-1333 
	 	Attention: 	Head: Corporate Banking Credit Risk 

	 	9.1.2 	The Borrower: 

	 	Physical: 	4th Floor – President Place 
	 	  	Corner Jan Smuts & Bolton Road 
	 	  	Rosebank 
	 	  	2196 
	 	Postal: 	PO Box 2424 
	 	  	Parklands 
	 	  	2121 
	 	Facsimile: 	011 442-5894 
	 	Attention: 	The Financial Director 

	 	9.2 	
      Any notice or communication required or permitted to be
      given in terms of this Facility Letter shall be valid and effective only
      if in writing. It shall be acceptable to give notice by fax provided that
      proof of such fax transmission is provided to the Party to whom notice is
      addressed and physical copies of the notice or communication are delivered
      to the aforesaid address of the Party to whom such notice is addressed
      within 3 (three) Business Days of such fax transmission.

	 	 	 
	 	9.3 	
      Any Party may by written notice to the other Parties
      change its chosen address to another physical address in South Africa,
      provided that the change shall become effective on the 7th (seventh) day
      after delivery of such notice to the addressee.

	 	 	 
	 	9.4 	
      Any notice to a Party contained in a correctly addressed
      envelope and delivered by hand to a responsible person during ordinary
      business hours at its chosen address shall be deemed to have been
      received, unless the contrary is proved, on the first Business Day after
      delivery.

	 	 	 
	 	9.5 	
      Notwithstanding anything to the contrary contained in
      this clause, a written notice or communication actually received by a
      Party shall be an adequate written notice or communication to it,
      notwithstanding that it was not sent to or delivered at its chosen
      address.

	10 	
      REVIEW OF FACILITIES AND INTEREST RATE

	 	 	 
		10.1 	
      Nedbank shall be entitled to review the Facilities
      throughout the duration of the Facilities, including any renewals and
      extensions thereof:

	 	 	 
			
      10.1.1 at any time; and

	 	10.1.2 	
      once the audited annual company and consolidated
      Financial Statements of the Borrower and any Security Provider become
      available, but in any event within 180 (one hundred and eighty) days after
      the end of each reporting period of the
Borrower.

		10.2 	
      Notwithstanding any provisions to the contrary which may
      be contained in the Facility Letter, Nedbank shall, in its sole discretion
      and acting reasonably, be entitled to review the interest rate applicable
      to the facilities contemplated in clause 3.1 and if it deems necessary to
      amend the interest rate on 90 (ninety) days prior written notice to the
      Borrower.

	 	 	 
	11 	
      REPLACEMENT

	 	 	 
		
      The Offer contained in this Facility Letter supersedes
      and replaces all previous facility letters entered into between the
      Corporate Banking Division of Nedbank and the Borrower or any of its
      Subsidiaries. In the event that a separate agreement for banking
      facilities (in terms of a separate facility letter) has been entered into
      with any of the Borrower’s Subsidiaries, the Offer contained in this
      Facility Letter shall not supersede the offer in that separate facility
      letter.

	 	 	 
	12 	
      EXPIRY DATE

	 	 	 
		
      The Offer contained in this Facility Letter is open for
      acceptance until 30 April 2010. If the Offer is not accepted by the
      Borrower on or before that date, the Offer shall lapse and this Facility
      Letter shall be of no force and effect.

Should any aspect of this Facility Letter require
clarification, please contact Leon Oosthuizen on 011 295 8179.

If the terms of this Facility Letter are acceptable to the
Borrower, kindly have an authorised official of the Borrower sign the attached
duplicate original of this Facility Letter and return it to Nedbank, together
with a resolution of the board of directors of the Borrower authorising the
signing official to accept the Facilities on behalf of the Borrower.

Yours faithfully

	/s/ M Steenkamp
	 	/s/ C
      Botha 	 	/s/ L
      Oosthuizen 	 
	M STEENKAMP 	 	C BOTHA 	 	L OOSTHUIZEN 	 
	CREDIT EXECUTIVE 	 	CREDIT MANAGER 	 	SENIOR CORPORATE BANKER 	 
	CORPORATE BANKING CREDIT 	 	CORPORATE BANKING CREDIT 	 	CORPORATE BANKING 	 
	RISK 	 	RISK 	 	  	 

ACCEPTED ON
THIS         
30th         
DAY OF          
April          2010

_____________________________

  For and on behalf of:

  NET 1 APPLIED TECHNOLOGIES

  (SOUTH AFRICA) LIMITED

  (who hereby warrants his authority)

ACCEPTED ON
THIS         
30th          DAY
OF          
April          2010

/s/ Cara van Straaten /s/ David Hawley 
For and on
behalf of:
CASH PAYMASTER SERVICES
(PROPRIETARY) LIMITED
(who
hereby warrants his authority)

ACCEPTED ON
THIS         
30th          DAY
OF           
April          2010

/s/ Cara van Straaten /s/ David Hawley 
For and on
behalf of:
CASH PAYMASTER SERVICES 
(KWAZULU NATAL) (PROPRIETARY)
LIMITED
(who hereby warrants his authority)

ACCEPTED ON
THIS                  
DAY
OF                       
2010

N/A – company being deregistered 

For and on behalf of:

CASH PAYMASTER SERVICES

(GAUTENG) (PROPRIETARY)

LIMITED

(who hereby warrants his authority)

ACCEPTED ON
THIS        
30th         
DAY OF     
April          
2010

/s/ Cara van Straaten /s/ David Hawley 
For and on
behalf of:
CASH PAYMASTER SERVICES 
(NORTHERN) (PROPRIETARY)

LIMITED
(who hereby warrants his authority)

ACCEPTED ON
THIS         
30th          DAY
OF      
April          
2010

/s/ Cara van Straaten /s/ David Hawley 
For and on
behalf of:
CASH PAYMASTER SERVICES 
(NORTHWEST) (PROPRIETARY)

LIMITED
(who hereby warrants his authority)

ACCEPTED ON THIS _______DAY OF__________ 2010

N/A – company being deregistered 
For and on behalf
of:
CASH PAYMASTER SERVICES
(MPUMALANGA) (PROPRIETARY)

LIMITED

(who hereby warrants his authority)

ACCEPTED ON
THIS         
30th          DAY
OF    
April          
2010

/s/ Cara van Straaten /s/ David Hawley 
For and on
behalf of:
CASH PAYMASTER SERVICES 
(NORTHERN CAPE) (PROPRIETARY)

LIMITED
(who hereby warrants his authority)

ACCEPTED ON
THIS         
30th          DAY
OF       
April        2010

/s/ Cara van Straaten /s/ David Hawley 
For and on
behalf of:
CASH PAYMASTER SERVICES
(EASTERN CAPE) (PROPRIETARY)

LIMITED
(who hereby warrants his authority)

ACCEPTED ON
THIS         
30th          DAY
OF     
April       
2010

/s/ Cara van Straaten /s/ David Hawley 
For and on
behalf of:
EASY PAY (PROPRIETARY) LIMITED
(who hereby warrants his
authority)

ACCEPTED ON
THIS         
30th          DAY
OF      
April       
2010

/s/ Cara van Straaten /s/ David Hawley 
For and on
behalf of:
MONEYLINE FINANCIAL SERVICES 
(PROPRIETARY)
LIMITED
(who hereby warrants his authority)

ACCEPTED ON
THIS        
30th         
DAY OF     
April        2010

/s/ Cara van Straaten /s/ David Hawley 
For and on
behalf of:
NET 1 FINANCE HOLDINGS 
(PROPRIETARY) LIMITED
(who
hereby warrants his authority)

ACCEPTED ON
THIS         
30th          DAY
OF     
April       
2010

/s/ Cara van Straaten /s/ David Hawley 
For and on
behalf of:

PRISM HOLDINGS LIMITED
(who hereby warrants his
authority)

ACCEPTED ON
THIS         
30th          DAY
OF      
April         
2010

/s/ Cara van Straaten /s/ David Hawley 
For and on
behalf of:
PRISM PAYMENT TECHNOLOGIES
(PROPRIETARY) LIMITED
(who
hereby warrants his authority)

ACCEPTED ON
THIS         
30th          DAY
OF     
April         
2010

/s/ Cara van Straaten /s/ David Hawley 
For and on
behalf of:
SINQOBILE SECURITY SERVICES GAUTENG 
(PROPRIETARY)
LIMITED
(who hereby warrants his authority)

ACCEPTED ON
THIS         
30th          DAY
OF      
April       2010

/s/ Cara van Straaten /s/ David Hawley 
For and on
behalf of:
SIYEZA SECURITY SERVICES

(PROPRIETARY) LIMITED

(who
hereby warrants his authority)

ACCEPTED ON
THIS        
30th         
DAY
OF       April         
2010

/s/ Cara van Straaten /s/ David Hawley 
For
and on behalf of:
FRIEDLAND 035 INVESTMENTS 
(PROPRIETARY)
LIMITED

(who hereby warrants his authority)

ACCEPTED ON
THIS        
30th         
DAY OF      
April      2010

/s/ Cara van Straaten /s/ David Hawley 
For and on
behalf of:
NET1 UNIVERSAL ELECTRONIC TECHNOLOGICAL SOLUTIONS

(PROPRIETARY) LIMITED
(who hereby warrants his authority)

ACCEPTED ON
THIS         
30th          
DAY OF        
April          
2010

/s/ Cara van Straaten /s/ David Hawley 
For and on
behalf of:
RMT SYSTEMS (PROPRIETARY) 
LIMITED
(who hereby
warrants his authority)

GENERAL PROVISIONS

SECTION 1

	1 	
      DEFINITIONS AND INTERPRETATION

	 	 	 	 
		
      In this Facility Letter,

	 	 	 	 
		1.1 	
      unless clearly inconsistent with or otherwise indicated
      by the context:

	 	 	 	 
			1.1.1 	
      the following expressions shall bear the meanings
      ascribed to them hereunder and cognate expressions shall have
      corresponding meanings:

	 	1.1.1.1 	
      ‘Affected Instrument’ shall have the meaning given
      to it in clause 4 below;

	 	 	 
	 	1.1.1.2 	
      ‘Applicable Laws’ means and includes the Companies
      Act, Basel II (the Framework established for the International Convergence
      of Capital Measurement and Capital Standards), common or customary law and
      any constitution, decree, judgement, legislation, order, ordinance,
      statute, treaty or other legislative measure applicable to Nedbank and/or
      the Borrower and includes any present or future directive, regulation,
      guideline, practice, concession, request or requirement issued by any
      governmental body, agency or department or any central bank or other
      fiscal, monetary, regulatory, self regulatory or other authority or agency
      whether or not having the force of law, but, if not having the force of
      law, the compliance with which is customary;

	 	 	 
	 	1.1.1.3 	
      ‘Banks Act’ means the Banks Act, No. 94 of
      1990;

	 	 	 
	 	1.1.1.4 	
      ‘Business Day’ means any day other than a
      Saturday, Sunday, proclaimed public holiday in South Africa or a day on
      which commercial banks in South Africa generally are not open for
      business;

	 	 	 
	 	1.1.1.5 	
      ‘Companies Act’ means the Companies Act, No. 61 of
      1973;

	 	 	 
	 	1.1.1.6 	
      ‘Change of Control’ means, after the Signature
      Date, any person or group of persons who exercised Control as at the
      Signature Date, ceasing to have direct or indirect Control of the
      Borrower;

	 	 	 
	 	1.1.1.7 	
      ‘Control’, in relation to a company the shares of
      which are:

	 	1.1.1.7.1 	
      not listed on a stock exchange, means any one of the
      following, namely if another company or legal entity
or person (whether alone or pursuant to
an agreement with others):

	 	1.1.1.7.1.1  	
      holds or controls more than 50% (fifty percent) of the
      voting rights taking into account when such voting rights can be
      exercised) in that company; or

	 	 	 
	 	1.1.1.7.1.2 	
      has the right to appoint or remove the majority of that
      company’s board of directors; or

	 	 	 
	 	1.1.1.7.1.3 	
      has the power to ensure the majority of that company’s
      board of directors will act in accordance with its wishes;
  and

	 	1.1.1.7.2 	
      listed on the stock exchange means:

	 	 	 	 
	 		1.1.1.7.2.1  	the holding of shares or the aggregate of the holding of
      shares or other securities in a company entitling the holder thereof to
      exercise, or cause to be exercised 35% (thirty five percent) or more of
      the voting rights at shareholder meetings of the company irrespective of
      whether such holding or holdings confers de facto control, provided that
      should there be other shareholders holding more than 35% (thirty five
      percent), 35% (thirty five percent) shall be read to refer to ‘the largest
      percentage shareholding held at the time’; or
	 	 	 	 
	 		1.1.1.7.2.2 	
      the holding or control by a shareholder or member alone
      or pursuant to an agreement with other shareholders or members of more
      than 35% (thirty five percent) of the voting rights in the company
      irrespective of whether such holding or holdings confers de facto control,
      provided that should there be other shareholders holding more than 35%
      (thirty five percent), 35% (thirty five percent) shall be read to refer to
      ‘the largest percentage shareholding held at the
time’;

	 	1.1.1.8 	
      ‘Encumbrance’ means any mortgage, pledge, lien,
      charge, hypothecation or security interest or any other agreement or
      arrangement having the effect of conferring security on any assets and
      ‘Encumbering’ shall have a corresponding meaning;

	 	 	 	 
	 	1.1.1.9 	
      ‘Event of Default’ means any event or circumstance
      specified as such in clause 12 below;

	 	 	 	 
	 	1.1.1.10 	
      ‘Financial Indebtedness’ means any indebtedness
      for or in respect of:

	 	 	 	 
	 		1.1.1.10.1  	
      moneys borrowed;

	 	 	 	 
	 		1.1.1.10.2 	
      any amount raised by acceptance under any acceptance
      credit facility;

	 	 	 	 
	 		1.1.1.10.3 	
      any amount raised pursuant to any note purchase facility
      or the issue of bonds, notes, debentures, loan stock or any similar
      instrument;

	 	 	 	 
	 		1.1.1.10.4 	
      the amount of any liability in respect of any lease or
      hire purchase contract which would, in accordance with GAAP, be treated as
      a finance or capital lease;

	 	 	 	 
	 		1.1.1.10.5 	
      receivables sold or discounted (other than any
      receivables to the extent they are sold on a non-recourse
basis);

	 	 	 	 
	 		1.1.1.10.6 	
      any amount raised under any other transaction (including
      any forward sale or purchase agreement) having the commercial effect of a
      borrowing;

	 	 	 	 
	 		1.1.1.10.7 	
      any derivative transaction entered into in connection
      with protection against or benefit from fluctuation in any rate or price
      (and, when calculating the value of any derivative transaction, only the
      marked to market value shall be taken into account);

	 	 	 	 
	 		1.1.1.10.8 	
      any counter-indemnity obligation in respect of a
      guarantee, indemnity, bond, standby or documentary letter of credit or any
      other instrument issued by a bank or financial institution; and

	 	 	 	 
	 		1.1.1.10.9 	
      the amount of any liability in respect of any guarantee
      or indemnity for any of the items referred to in clause 1.1.1.10.1 to
      1.1.1.10.8 above;

	 	1.1.1.11 	
      ‘Financial Statements’ means the most recent
      financial statements of the Borrower or any Security Provider,
      consolidated, if applicable and prepared in accordance with GAAP or
      IFRS;

	 	 	 	 
	 	1.1.1.12 	
      ‘Foreign Currency’ means any indebtedness or
      amounts in a currency other than Rand;

	 	 	 	 
	 	1.1.1.13 	
      ‘GAAP’ means Generally Accepted Accounting
      Practice of South Africa, consistently applied;

	 	 	 	 
	 	1.1.1.14 	
      ‘Holding Company’ shall have the meaning ascribed
      to it in the Companies Act;

	 	 	 	 
	 	1.1.1.15 	
      ‘IFRS’ means the International Financial Reporting
      Standards, consistently applied;

	 	 	 	 
	 	1.1.1.16 	
      ‘Income Tax Act’ means the Income Tax Act, No. 58
      of 1962;

	 	 	 	 
	 	1.1.1.17 	
      ‘Insolvency Act’ means the Insolvency Act, No. 24
      of 1936;

	 	 	 	 
	 	1.1.1.18 	
      ‘Material Adverse Change’ means an event,
      circumstance or matter or combination of events, circumstances or matters
      which, in Nedbank’s reasonable opinion, has or may have, a material
      adverse effect on:

	 	 	 	 
	 		1.1.1.18.1  	
      the ability of the Borrower to comply with any of its
      obligations under this Facility Letter or the ability of any Security
      Provider to comply with any of its obligations under any Security, as the
      case may be;

	 	 	 	 
	 		1.1.1.18.2 	
      the business, operations, property, condition (financial
      or otherwise) or prospects of the Borrower, or of any Security
      Provider;

	 	 	 	 
	 		1.1.1.18.3 	
      the validity or enforceability of this Facility Letter or
      any of Nedbank’s rights and remedies hereunder, or the validity or
      enforceability of any Security or any of Nedbank’s rights and remedies
      thereunder;

	 	 	 	 
	 	1.1.1.19 	
      ‘NACM’ means nominal annual compounded monthly in
      arrear;

	 	 	 	 
	 	1.1.1.20 	
      ‘Nedbank’ means collectively Nedbank Limited
      (Registration Number 1951/000009/06), Nedbank Company or, if the context
      is appropriate, any one or both of them;

	 	 	 	 
	 	1.1.1.21 	
      ‘Nedbank Company’ means any Subsidiary of Nedbank
      Group Limited;

	 	1.1.1.22 	
      ‘Nedbank Group Limited’ means Nedbank Group
      Limited (Registration Number 1966/010630/06);

	 	 	 	 
	 	1.1.1.23 	
      ‘Offer’ means the offer of banking facilities made
      by Nedbank to the Borrower in the Facility Letter;

	 	 	 	 
	 	1.1.1.24 	
      ‘Outstanding Amount’ means the aggregate amount by
      which the Facilities has been drawn down from time to time, together with
      all accrued and capitalised interest thereon, if any, together with any
      and all other amounts that may be due and payable by the Borrower to
      Nedbank;

	 	 	 	 
	 	1.1.1.25 	
      ‘Parties’ means collectively the Borrower, Nedbank
      or, if the context is appropriate, any one or more of them and shall
      include any other signatory hereto;

	 	 	 	 
	 	1.1.1.26 	
      ‘Permitted Encumbrance’ means any Encumbrance
      which is existing prior to the Signature Date, which has been
      disclosed:

	 	 	 	 
	 		1.1.1.26.1  	
      in writing to Nedbank prior to the Signature Date;
    or

	 	 	 	 
	 		1.1.1.26.2 	
      noted or provided for, in the Financial
  Statements,

	 	 	 	 
	 		
      and which only secures indebtedness outstanding at the
      Signature Date if the principal amount outstanding or original facility
      thereby secured is not increased after the Signature Date;

	 	 	 	 
	 	1.1.1.27 	
      ‘Prime Rate’ means the publicly quoted rate of
      interest as certified by any manager (whose appointment or authority or
      designation it shall not be necessary to prove) of Nedbank at which
      Nedbank lends in Rand to its borrowers in general from time to time, on
      the basis of such interest being calculated daily on a 365 (three hundred
      and sixty five) day year and compounded monthly in arrear, irrespective of
      whether or not the year in question is a leap year;

	 	 	 	 
	 	1.1.1.28 	
      ‘Rand’ means South African Rands, the lawful
      currency of the Republic of South Africa;

	 	 	 	 
	 	1.1.1.29 	
      ‘Security’ means the security referred to in
      clause 4 of the Offer Letter and any other security provided to Nedbank in
      terms of this Facility Letter and in terms of any facility or
      instrument;

	 	 	 	 
	 	1.1.1.30 	
      ‘Security Provider’ means the entities providing
      the Security referred to in clause 4 of the Offer Letter and any other
      security provided to Nedbank in terms of this Facility Letter and in terms
      of any facility or instrument;

	 		1.1.1.31 	
      ‘Signature Date’ means the date of signature of
      the Party last signing this Facility Letter in time;

	 	 	 	 
	 		1.1.1.32 	
      ‘Subsidiary shall have the meaning ascribed to it
      in the Companies Act;

	 	 	 	 
	 		1.1.1.33 	
      ‘SARB’ means the South African Reserve
  Bank;

	 	 	 	 
	 		1.1.1.34 	
      ‘Tax’ means any tax, levy, impost, duty or other
      charge or withholding of a similar nature (including any penalty or
      interest payable in connection with any failure to pay or any delay in
      paying any of the same);

	 	 	 	 
	 	1.1.2 	
      words referring to any one gender includes the other
      gender;

	 	 	 	 
	 	1.1.3 	
      words importing the singular shall include the plural and
      vice versa;

	 	 	 	 
	 	1.1.4 	
      any reference to a person shall include a reference to an
      individual, a firm, a body corporate, a trust, an unincorporated
      association, government or a partnership and that person’s legal
      representatives and successors;

	 	 	 	 
	 	1.1.5 	
      the headings of the clauses in the Facility Letter are
      for the purpose of convenience and reference only and shall not be used in
      the interpretation of nor modify nor amplify the terms of the Facility
      Letter nor any clause hereof;

	 	 	 	 
	 	1.1.6 	
      when any number of days is prescribed in the Facility
      Letter, such number shall be calculated inclusively of the first and
      exclusively of the last day;

	 	 	 	 
	 	1.1.7 	
      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;

	 	 	 	 
	 	1.1.8 	
      where any act is to be performed on a day which is not a
      Business Day, such act shall be performed on the next Business
  Day;

	 	 	 	 
	 	1.1.9 	
      any reference to a statute or statutory provision or law
      includes a reference to that statute or statutory provision as amended,
      substituted, extended or re- enacted and to any regulation, order,
      proclamation, directive, code, practice, note, ruling, instrument or
      subordinate legislation under such statute or statutory
  provision;

	 	 	 	 
	 	1.1.10 	
      any reference to any other agreement, document or
      instrument shall be to that agreement, document or instrument as amended,
      varied, novated or replaced from time to time;

	 	 	 	 
	 	1.1.11 	
      where figures are referred to in numerals and in words,
      if there is any conflict between the two, the words shall
  prevail;

		
       
	
    1.1.12 	any term defined in this Facility Letter shall have the
      meaning ascribed to it by such definition, irrespective of where it is
      used in this Facility Letter and unless it is clear from the clause in
      question that the term so defined has limited application to that clause,
      that term shall bear the meaning ascribed to it in that clause for all
      purposes in this Facility Letter, notwithstanding that the term has not
      been defined in this interpretation clause.
	 	 	 	 
	2 	
      ADDITIONAL SERVICES AND FACILITIES

	 	 	 	 
		
      The Facility Letter governs only the Facilities. Any
      other contractual relationships between the Parties or Nedbank Group
      Limited or any of its Subsidiaries shall be governed by the terms and
      conditions of separate agreements entered into between the Borrower and
      that entity.

	 	 	 	 
	3 	
      FLEXIBILITY

	 	 	 	 
		
      Unless otherwise agreed to in writing by the Parties, and
      subject to the availability of a particular instrument at a particular
      time, the Borrower shall be entitled to utilise any or all of the
      instruments offered in the Facility Letter up to the amount of the limit
      or the sub-limit, as the case may be, pertaining to a particular
      instrument set out in the Facility Letter from time to time, provided that
      instruments with a fixed maturity date shall continue up to such maturity
      date.

	 	 	 	 
	4 	
      UNAVAILABILITY OF INSTRUMENTS

	 	 	 	 
		
      Should:

	 	 	 	 
		4.1 	
      there be any change in legislation or any regulations
      made in terms thereof or in the departmental practice of any authority or
      in the interpretation or application of any such legislation or
      regulations or departmental practice by any court or competent official or
      should there be any change in banking practice as it affects or is applied
      by or to Nedbank and any other financial institutions generally registered
      as such in the applicable jurisdiction; and/or

	 	 	 	 
		4.2 	
      any other event occurs which is beyond the control of
      Nedbank,

	 	 	 	 
		
      with the result that any instrument offered in the
      Facility Letter is no longer made available by Nedbank (‘an Affected
      Instrument’), then Nedbank shall notify the Borrower in writing that
      the Affected Instrument will no longer be made available to the Borrower
      and the Borrower shall, unless otherwise agreed between the Parties,
      within 3 (three) Business Days of the despatch of such notice,
    elect:

	 	 	 	 
		4.3 	
      to replace the Affected Instrument with any one or more
      of the other instruments offered in the Facility Letter; and/or

	 	 	 	 
		4.4 	
      to settle the amount owing under the Affected
      Instrument.

	5 	
      EARLY REPAYMENT

	 	 	 
		
      No early repayment of any Facilities shall be allowed
      unless Nedbank agrees thereto, subject to any penalty which Nedbank may
      impose at that time.

	 	 	 
	6 	
      PAYMENTS

	 	 	 
		6.1 	
      Any payments to be made by the Borrower under this
      Facility Letter shall be made before 12h00 on due date in such manner as
      Nedbank may notify the Borrower in writing from time to time and
      furthermore shall be made free of exchange or right of deferment,
      avoidance or set-off and without deduction for or on account of any Tax
      unless the Borrower is, under law, required to make such payment subject
      to the deduction or withholding of Tax, in which case the amount payable
      by the Borrower in respect of which such deduction or withholding is
      required to be made shall be increased to the extent necessary to ensure
      that, after the making of the required deduction or withholding, Nedbank
      receives and retains (free from any liability in respect of such deduction
      or withholding) a net amount equal to the amount which it would have
      received and so retained had no such deduction or withholding been
      required to be made.

	 	 	 
		6.2 	
      All interest, charges, commission, costs and fees which
      are payable by the Borrower to Nedbank shall be paid in the currency of
      the relevant instrument and, unless discharged directly by the Borrower,
      shall be paid out of any current account of the Borrower held at Nedbank.
      The Borrower hereby authorises Nedbank to debit and deduct such interest,
      charges, commissions, costs and fees to such current account.

	 	 	 
		6.3 	
      Nedbank shall be entitled to allocate all and any
      payments by the Borrower, after deduction of costs, to any indebtedness of
      the Borrower to Nedbank and the Borrower waives all and any rights that it
      may have to name the debt in respect of which such payment is
  made.

	 	 	 
	7 	
      INTEREST

	 	 	 
		7.1 	
      Each interest bearing instrument utilised by the Borrower
      in terms of this Facility Letter shall bear interest at the rate agreed to
      between the Parties and such accrued interest shall be paid by the
      Borrower on the dates and in the manner agreed to between the
    Parties.

	 	 	 
		7.2 	
      All and any amounts owing to Nedbank which are not paid
      on the due date thereof or any excess over any limit or sub-limit set out
      in the Facility Letter, as the case may be, shall bear interest at a rate
      of 3% (three percent) per annum above the Prime Rate, calculated from the
      due date thereof or the date on which any excess occurred, as the case may
      be, until the date of actual payment thereof by the Borrower to
      Nedbank.

	 	 	 
		7.3 	 All and any amounts owing to Nedbank under the foreign
        finance facility which are not paid on the due date thereof or any excess
        over any foreign finance limit or sub-limit, as the case may be, shall
        bear interest at the prevailing penalty interest rate of Nedbank in respect
        of such foreign finance from time to time, calculated from the due date
        thereof or the date on which any excess occurred, as the case may be,
        until the date of receipt of such amounts by Nedbank.

	8 	 INCREASED COSTS

	 	 	 	 	 
		8.1 	 If, at any time during the currency of this
        Facility Letter, there occurs-

	 	 	 	 	 
			8.1.1 	 any adoption, amendment, variation, replacement
        or change in the interpretation of any Applicable Laws or of any authorisation
        with which commercial banks generally in the Republic of South Africa
        are required to comply or any change in circumstances occurs or any duties
        are imposed on such commercial banks at any time after the Signature Date;
        and/or

	 	 	 	 	 
			8.1.2 	 any directive, requirement, request or guidance
        (whether or not having the force of law but if not having the force of
        law, one which applies generally to a class or category of financial institutions
        and/or financial service companies directly or indirectly) of any central
        bank or any other fiscal, monetary, regulatory or other authority in the
        Republic of South Africa; and/or

	 	 	 	 	 
			8.1.3 	 any change in banking practice, as it affects
        or is applied generally to or by any financial institution directly or
        indirectly in the Republic of South Africa; and/or

	 	 	 	 	 
			8.1.4 	 a requirement by any statutory or monetary
        authority in the Republic of South Africa as applies generally to all
        banks in the Republic of South Africa, to-

	 	 	 	 	 
				 8.1.4.1 
	pay levies or any other amounts whatsoever or to maintain special
      deposits or reserve assets, in addition to those paid or maintained or reserved
      by Nedbank as at the Signature Date; or
	 	 	 	 	 
				8.1.4.2	 comply with any reserve, cash ratio, special
        deposit or liquid requirements (or any other similar requirements) in
        respect of this Facility Letter in addition to those anticipated by Nedbank
        at the Signature Date; or

	 	 	 	 	 
				8.1.4.3 	 to pay any new, increased, amended or additional
        Tax; and/or

	 	 	 	 	 
			8.1.5 	 any compliance by Nedbank with any capital
        adequacy, reserve, cash ratio, special deposit, liquidity or similar requirements
        of a statutory or monetary authority as applies generally to banks in
        the Republic of South Africa, howsoever arising in the Republic of South
        Africa in respect of this Facility Letter, including any increase in the
        amount of the capital to be allocated by Nedbank to the amount advanced
        under this Facility Letter or a change of weighting of the commitment
        under this Facility Letter; or

	 	 	 	 	 
			8.1.6 	 any other event attributable to a statutory
        or monetary authority which is beyond the control of Nedbank, with the
        result that-

	 	8.1.6.1 	
      Nedbank is subjected to any new, increased, amended or
      additional Tax, duty or other charge in respect of the Facilities or a
      change in the basis of taxation of Nedbank in respect of amounts payable
      to Nedbank in terms of this Facility Letter; or

	 	 	 
	 	8.1.6.2 	
      any new, increased, amended or additional reserve,
      special deposit or similar requirement is imposed against the assets or
      deposits with or for the account of, or credit extended by Nedbank;
    or

	 	 	 
	 	8.1.6.3 	
      any other new, increase, amended or additional obligation
      or condition directly affecting the cost of Nedbank is imposed on Nedbank
      of maintaining or funding its commitment under this Facility Letter;
    or

	 	 	 
	 	8.1.6.4 	
      the cost to Nedbank of making or maintaining the Facility
      is increased or any amounts received or receivable by Nedbank under this
      Facility Letter are reduced; or

	 	 	 
	 	8.1.6.5 	
      Nedbank’s rate of return on its capital is reduced by
      reason only of change in the manner in which it is required to allocate
      capital resources to its obligations under this Facility Letter;
  or

	 	 	 
	 	8.1.6.6 	
      Nedbank is required to make a payment or forego the
      return on any amount received or receivable by it under this Facility
      Letter,

	 		
      and the result of any of the above is to increase the net
      after Tax cost and/or any other cost to Nedbank of maintaining or funding
      its commitment under this Facility Letter or reduces the net after Tax
      return and/or the return on capital to Nedbank in respect of maintaining
      or funding its commitment under this Facility Letter, then, subject to the
      obligation of the Lender to take reasonable steps to mitigate such
      increased net after Tax cost or other increased costs or reduced net after
      Tax return or reduced return on capital, Nedbank shall be entitled to
      determine a fee to place Nedbank in the same net after Tax position in
      which it would have been if such increase or reduction had not taken
      place, which fee shall be payable within 10 (ten) Business Days of receipt
      by the Borrower of a written demand from Nedbank, and accompanied by the
      requisite documentation to substantiate Nedbank’s entitlement to such
      fee.

	 	 	 	 
	 	8.2 	
      This clause 8 does not apply to any increased cost
      arising in terms of clause 8.1-

	 	 	 	 
	 		8.2.1 	
      on account of Tax payable on any income, profits or gains
      of Nedbank to the extent arising from amendments or changes which affect
      corporate taxpayers generally; or

	 	 	 	 
	 		8.2.2 	
      resulting from any breach or violation by Nedbank of, or
      breach by Nedbank of any limits imposed by, any provision of any law,
      ruling, regulation or practice by any relevant monetary or fiscal
      authority or court or competent official, arising as a consequence of any
      action or omission by Nedbank after the introduction of such provision and/or imposition of
      such limits or after the relevant change in the interpretation thereof has
      become known to Nedbank and/or generally known amongst banks operating in
  the Republic of South Africa.

		8.3 	
      If Nedbank is entitled to any Tax benefit by reason of
      any circumstance in respect of which the Borrower has paid the fee as
      contemplated in clause 8.1, Nedbank shall pay to the Borrower such amount,
      limited to the maximum of the fee paid by the Borrower as aforesaid, as
      will leave Nedbank with the same net after Tax return as it would have
      received in respect of maintaining or funding its commitment under this
      Facility Letter had the Tax benefit not been granted. Payment of such sum
      shall be made within 10 (ten) Business Days of Nedbank becoming entitled
      to such Tax benefit.

	 	 	 	 
		8.4 	
      If any events or circumstances envisaged in clause 8.1
      occur with the result that the net after Tax cost or any other cost to
      Nedbank of maintaining or funding its commitment under this Facility
      Letter reduced or the net after Tax return or return on capital to Nedbank
      in respect of maintaining or funding its commitment under this Facility
      Letter increases, then Nedbank shall pay to the Borrower such fee as would
      be necessary to place Nedbank in the same position in which it would have
      been if such increase or reduction had not taken place, which fee shall be
      payable within 10 (ten) Business Days of receipt by Nedbank of a written
      demand from the Borrower, and accompanied by the requisite documentation
      to substantiate the Borrower’s entitlement to such fee.

	 	 	 	 
	9 	
      OFFSHORE BUSINESS OR ACTIVITIES

	 	 	 	 
		9.1 	
      Except for existing business, the Borrower shall notify
      Nedbank before:

	 	 	 	 
			9.1.1 	
      the Borrower makes any offshore investment; or

	 	 	 	 
			9.1.2 	
      the Borrower issues a guarantee or binds itself as surety
      and/or co-principal debtor for the debts of a third party offshore, which
      will have inter alia the effect of (but not limited to) Encumbering the
      Borrower’s assets, financial status or balance sheet.

	 	 	 	 
		9.2 	
      Nedbank shall be entitled to:

	 	 	 	 
			9.2.1 	
      call for further and/or detailed information regarding
      the Borrower’s offshore business, business enterprises, activities,
      investments and review the Facilities offered to the Borrower.

	 	 	 	 
			9.2.2 	
      call for an audit on the Borrower’s financial status to
      investigate and/or confirm disclosures to Nedbank, and the possible
      Encumbrance of the Borrower’s assets, financial status or balance
      sheet.

	 	 	 	 
	10 	
      UNDERTAKINGS

	 	 	 	 
		
      The Borrower undertakes:

		10.1 	
      promptly to inform Nedbank in writing of:

	 	 	 	 
			10.1.1 	
      any Change of Control of the Borrower or any Security
      Provider;

	 	 	 	 
			10.1.2 	
      the details of any litigation, arbitration or
      administrative proceedings which are current, threatened or pending
      against the Borrower or any Security Provider and which might result in a
      Material Adverse Change;

	 	 	 	 
			10.1.3 	
      any occurrence of which it becomes aware which will or
      may adversely affect the Borrower’s or any Security Provider’s ability to
      perform or observe its obligations in terms of the Facility Letter or any
      Security, as the case may be; or

	 	 	 	 
			10.1.4 	
      the occurrence of any Event of Default,

	 	 	 	 
			
      forthwith upon becoming aware thereof;

	 	 	 	 
		10.2 	
      to comply with the requirements of the Exchange Control
      Department of the SARB and shall furnish written proof of such compliance
      to Nedbank on request;

	 	 	 	 
		10.3 	
      to comply with the provisions of the National Credit Act,
      No 34 of 2005, if applicable;

	 	 	 	 
		10.4 	
      to furnish Nedbank upon demand by Nedbank, with such
      information concerning the Borrower, its Holding Company and their
      respective Subsidiaries as well as any Security Provider as Nedbank may
      from time to time reasonably require.

	 	 	 	 
		10.5 	
      not to create or permit to subsist any Encumbrances on
      any of its assets, except for Permitted Encumbrances, without the prior
      written consent of Nedbank, which consent shall not be unreasonably
      withheld if the Encumbrances are in the normal course of trade.

	 	 	 	 
	11 	
      WARRANTIES

	 	 	 	 
		11.1 	
      The Borrower represents and warrants to Nedbank
    that:

	 	 	 	 
			11.1.1 	
      it is a corporation duly incorporated and validly
      existing under the laws of the Republic of South Africa;

	 	 	 	 
			11.1.2 	
      it and each of its Subsidiaries have the power to own its
      assets and carry on its business as it is being conducted;

	 	 	 	 
			11.1.3 	
      it has the power to enter into, perform and execute the
      Facility Letter and has taken all necessary corporate and other actions to
      authorise its entry into, performance and execution of the Facility
      Letter, including such steps as may be necessary to comply with the
      provisions of Article 60 of Table A or Article 61 of Table B of the
      Companies Act, if applicable;

	 	11.1.4 	
      the obligations expressed to be assumed by the Borrower
      in the Facility Letter are legal, valid, binding and enforceable
      obligations;

	 	 	 	 
	 	11.1.5 	
      the entry into and performance by it of and, the
      transactions contemplated by the Facility Letter do not and will not
      conflict with:

	 	 	 	 
	 		11.1.5.1 	
      any law or regulation applicable to it;

	 	 	 	 
	 		11.1.5.2 	
      its and each of its Subsidiaries constitutional
      documents; or

	 	 	 	 
	 		11.1.5.3 	
      any agreement or instrument binding upon it or any of its
      or any of its Subsidiaries’ assets;

	 	 	 	 
	 	11.1.6 	
      no litigation, arbitration or administrative proceedings
      of or before any court, arbitral body or agency which , if adversely
      determined, might result in a Material Adverse Change have, to the
      knowledge of the Borrower been started or threatened against it or against
      any of its Subsidiaries or against any Security Provider;

	 	 	 	 
	 	11.1.7 	
      it is the owner of all its assets which are reflected in
      its Financial Statements and has not sold, transferred, exchanged,
      disposed of or otherwise alienated any such assets;

	 	 	 	 
	 	11.1.8 	
      the Financial Statements:

	 	 	 	 
	 		11.1.8.1 	
      fairly represent the financial condition of the Borrower
      and its Subsidiaries, where applicable, or the consolidated financial
      position of the Borrower and its Subsidiaries, where applicable or the
      financial condition of any Security Provider;

	 	 	 	 
	 		11.1.8.2 	
      were prepared in accordance with GAAP or IFRS;

	 	 	 	 
	 		11.1.8.3 	
      comply with the relevant reporting standards in terms of
      the Corporate Laws Amendment Act, No. 24 of 2006 and applicable to the
      Borrower as a widely held company or limited interest company, as the case
      may be.

	 	 	 	 
	 	11.1.9 	
      the Borrower has no significant liabilities, present or
      contingent, (including, without derogating from the generality of the
      foregoing) liabilities for Taxes or material forward or long term
      commitments, which are not disclosed or provided for in its Financial
      Statements;

	 	 	 	 
	 	11.1.10 	
      there has been no Material Adverse Change since the date
      of its most recent Financial Statements;

	 	 	 	 
	 	11.1.11 	
      the payment obligations under the Facility Letter or any
      Security rank at least pari passu with the claims of its other unsecured
      and unsubordinated creditors, except for claims that are preferred solely by
      insolvency, liquidation or other similar laws of general
  application;

			11.1.12 	
      that all of the information supplied by the Borrower or
      any Security Provider in connection with the Facility Letter is true,
      complete and accurate in all material respects as at the date it was
      provided or as at the date (if any) at which it is stated and the Borrower
      is not aware of any material facts or circumstances that have not been
      disclosed to Nedbank;

	 	 	 	 
			11.1.13 	
      neither the Borrower nor any Security Provider is
      required to make any deduction for or on account of Tax from any payment
      it may make under the Facility Letter or any Security, as the case may
      be;

	 	 	 	 
			11.1.14 	
      no Event of Default is continuing or might reasonably be
      expected to result from the Borrower utilising the Facilities;

	 	 	 	 
			11.1.15 	
      no other event or circumstance which constitutes a
      default under any other agreement or instrument which is binding on it or
      any of its Subsidiaries which might result in a Material Adverse Change is
      continuing.

	 	 	 	 
		11.2 	
      Each of the representations and warranties contained in
      this clause are deemed to be made by the Borrower throughout the duration
      of the Facilities, including any renewals and extensions
thereof.

	 	 	 	 
	12 	
      EVENTS OF DEFAULT

	 	 	 	 
		12.1 	
      Each of the following events or circumstances is an Event
      of Default:

	 	 	 	 
			12.1.1 	
      the Borrower fails to pay any amount due to Nedbank in
      terms of this Facility Letter on the due date thereof (unless failure to
      pay is solely due to technical or administrative reasons) and the relevant
      amount is not duly paid within 3 (three) Business Days of receipt of
      written notice from Nedbank calling upon the Borrower to pay such relevant
      amount;

	 	 	 	 
			12.1.2 	
      the Borrower breaches or does not comply with any
      provision of the Facility Letter and/or any other agreement between the
      Parties and fails to remedy such breach within the period of 10 (ten)
      Business Days after delivery by Nedbank to the Borrower of written notice
      requiring the Borrower to remedy such breach;

	 	 	 	 
			12.1.3 	
      a representation, warranty or statement made or deemed to
      be made by the Borrower in this Facility Letter or any other document
      delivered by or on behalf of the Borrower or any Security Provider under
      or in connection with this Facility Letter or any Security, as the case
      may be, is incorrect or misleading in any material respect when made or
      deemed to be made;

	 	12.1.4 	
      any material Financial Indebtedness of the Borrower or
      any Security Provider is not paid when due nor within any originally
      applicable grace period, or is declared to be or otherwise becomes due and
      payable prior to its specified maturity by reason of default (however
      described), whether or not Nedbank is concerned therewith. For the
      purposes of this clause ‘material’ means 5% (five percent) of the gross
      Financial Indebtedness of the Borrower or any Security Provider;

	 	 	 	 
	 	12.1.5 	
      any one or more of the following events occur:

	 	 	 	 
	 		12.1.5.1 	
      the Borrower is unable or admits inability to pay its
      debts as they fall due, suspends making payments on any of its debts or,
      by reason of actual or anticipated financial difficulties, commences
      negotiations with one or more of its creditors with a view to rescheduling
      any of its indebtedness; and

	 	 	 	 
	 		12.1.5.2 	
      a moratorium is declared in respect of any indebtedness
      of the Borrower, or any Security Provider;

	 	 	 	 
	 	12.1.6 	
      any corporate action, legal proceedings or other
      procedure or step is taken in relation to:

	 	 	 	 
	 		12.1.6.1 	
      the suspension of payments, a moratorium of any
      indebtedness, liquidation, winding-up, dissolution, judicial management or
      reorganisation (by way of voluntary arrangement, scheme of arrangement or
      otherwise) of the Borrower or any Security Provider;

	 	 	 	 
	 		12.1.6.2 	
      a compromise, assignment or arrangement with any creditor
      of either the Borrower or any Security Provider;

	 	 	 	 
	 		12.1.6.3 	
      the appointment of a liquidator, trustee, judicial
      manager, administrator or other similar officer in respect of the Borrower
      or any Security Provider, or any of its assets; or

	 	 	 	 
	 		12.1.6.4 	
      enforcement of any security over any assets of the
      Borrower or any Security Provider,

	 	 	 	 
	 		
      or any analogous procedure or step is taken in any
      jurisdiction;

	 	 	 	 
	 	12.1.7 	
      the general nature of the business of the Borrower or any
      Security Provider, is changed from that carried on at the date of this
      Facility Letter;

	 	 	 	 
	 	12.1.8 	
      any expropriation, attachment, sequestration or execution
      affects any material asset or assets of the Borrower or any Security
      Provider;

	 	12.1.9 	
      the Borrower or any Security Provider enters into a
      single transaction, or a series of transactions (whether related or not)
      and whether voluntarily or involuntarily to sell, lease, transfer or
      otherwise dispose of any asset except any sale, lease, transfer or other
      disposal made in the ordinary course of trading, or the value of the
      assets of the Borrower or any Security Provider, is materially reduced.
      For the purposes of this clause ‘materially’ means 5% (five percent) of
      the gross value of the assets of the Borrower or any Security
    Provider;

	 	 	 
	 	12.1.10 	
      the Borrower or any Security Provider repudiates the
      Facility Letter or any Security, as the case may be;

	 	 	 
	 	12.1.11 	
      the Borrower or any Security Provider does not comply in
      all respects with all laws to which it may be subject, if failure to so
      comply would materially impair its ability to perform its obligations
      under the Facility Letter or any Security, as the case may be;

	 	 	 
	 	12.1.12 	
      the Borrower or any Security Provider enters into any
      amalgamation, demerger, merger or corporate reconstruction;

	 	 	 
	 	12.1.13 	
      a Change of Control of the Borrower or any Security
      Provider occurs;

	 	 	 
	 	12.1.14 	
      a Material Adverse Change occurs;

	 	 	 
	 	12.1.15 	
      the Borrower acquires or attempts to acquire any shares
      in the issued share capital of its Holding Company or any of its own
      issued share capital or otherwise reduces its share capital, without the
      prior written consent of Nedbank, which shall not be unreasonably
      withheld;

	 	 	 
	 	12.1.16 	
      the Borrower or any Security Provider fails to obtain,
      comply with and do all that is necessary to maintain in full force and
      effect all government, Tax, monetary and other approvals required under
      any law or regulation to enable it to perform its obligations under the
      Facility Letter or any Security, as the case may be, and to ensure the
      legality, validity or enforceability of the Facility Letter or any
      Security, as the case may be and to continue its business
    operations;

	 	 	 
	 	12.1.17 	
      the Borrower or any of its Subsidiaries or any Security
      Provider creates or permits to subsist any Encumbrance on any of its
      assets, except for Permitted Encumbrances, without the prior written
      consent of Nedbank, which consent shall not be unreasonably withheld if
      the Encumbrances are in the normal course of trade;

	 	 	 
	 	12.1.18 	
      it is or becomes unlawful for the Borrower or any
      Security Provider to perform or comply with any or all of its obligations
      under this Facility Letter or any Security, as the case may be, or any of
      the obligations of the Borrower or any Security Provider hereunder or under any
      Security, as the case may be, is not or ceases to be legal, valid, binding
  and enforceable;

			12.1.19 	
      any litigation, arbitration or administrative proceedings
      of or before any court, arbitral body or agency which, if adversely
      determined, might result in a Material Adverse Change, is started or
      threatened against the Borrower or against any of its Subsidiaries or
      against any Security Provider.

	 	 	 	 
		12.2 	
      On and at any time after the occurrence of an Event of
      Default Nedbank may, without prejudice to any other remedy, on written
      notice to the Borrower:

	 	 	 	 
			12.2.1 	
      cancel the Facilities whereupon they shall immediately be
      cancelled;

	 	 	 	 
			12.2.2 	
      declare that all or part of the Facilities, together with
      accrued interest and all other amounts accrued or outstanding under the
      Facilities be immediately due and payable, whereupon they shall become
      immediately due and payable; and/or

	 	 	 	 
			12.2.3 	
      declare that all or part of the Facilities be payable on
      demand, whereupon they shall immediately become payable on demand by
      Nedbank; and/or

	 	 	 	 
			12.2.4 	
      set-off the indebtedness of the Borrower to Nedbank under
      or in terms of or arising from the Facilities against any and all amounts
      standing to the credit of the Borrower in the books of Nedbank, and for
      the purposes hereof, the Parties agree that if any such indebtedness is or
      such amounts are in Foreign Currency, such indebtedness or amounts shall
      be converted from such Foreign Currency to rand at the spot Rand/Foreign
      Currency rate quoted by Nedbank on the date of conversion.

	 	 	 	 
	13 	
      CERTIFICATE OF INDEBTEDNESS

	 	 	 	 
		13.1 	
      A certificate signed or purporting to be signed by a
      manager or director of Nedbank (whose appointment it shall not be
      necessary to prove) shall be prima facie proof of:

	 	 	 	 
			13.1.1 	
      the amount of any debt owing by the Borrower to Nedbank
      (including, without limitation, accrued interest and default interest) in
      terms of this Facility Letter;

	 	 	 	 
			13.1.2 	
      the due dates of performance in respect of any
      obligations of the Borrower in terms of this Facility Letter;

	 	 	 	 
			13.1.3 	
      any interest rate; or

	 	 	 	 
			13.1.4 	
      the fact that the debts are due and owing and have not
      been paid or otherwise discharged.

		13.2 	
      In addition to and in application of the provisions of
      clause, any schedule, certificate or other document provided by Nedbank in
      terms of this Facility Letter shall, if signed by any manager or director
      of Nedbank, be deemed to be prima facie proof of the correctness of its
      contents.

	 	 	 
	14 	
      COSTS

	 	 	 
		
      All costs and expenses which Nedbank may incur in
      connection with the enforcement or preservation of any of its rights under
      the Facility Letter, including, without derogating from the generality of
      the aforegoing, all legal costs on an attorney and client scale, tracing
      fees and stamp duty, shall be borne by the Borrower and shall be payable
      on demand.

	 	 	 
	15 	
      CESSION AND DELEGATION

	 	 	 
		15.1 	
      Nedbank shall be entitled to cede and/or delegate and/or
      assign or transfer in any way whatsoever all or any of its rights and
      obligations under this Facility Letter to any Nedbank Company and to
      disclose to such company such information regarding the Borrower or
      Security Provider as Nedbank may reasonably consider
appropriate.

	 	 	 
		15.2 	
      The Borrower or the Security Provider shall not be
      entitled to cede and/or delegate and/or assign or transfer in any way
      whatsoever, all or any of their respective rights and obligations under
      this Facility Letter or any Security, as the case may be.

	 	 	 
	16 	
      RENUNCIATION OF BENEFITS

	 	 	 
		
      The Borrower expressly waives and renounces any benefits
      to which it is entitled in law, including without in any way limiting or
      affecting the generality of the aforegoing the benefits from the legal
      exceptions non numeratae pecuniae, non causa debiti, errore
      calculi, revision of accounts and no value received and declares
      itself to be fully acquainted with the full meaning and effect
    thereof.

	 	 	 
	17 	
      MONITORING

	 	 	 
		
      Nedbank is not obliged to monitor or verify the
      application of any amount borrowed pursuant to the Facility
  Letter.

	 	 	 
	18 	
      MISCELLANEOUS

	 	 	 
		18.1 	
      Entire agreement

	 	 	 
			
      This Facility Letter contains all the express provisions
      agreed on by the Parties with regard to the subject matter hereof and the
      Parties waive the right to rely on any alleged express provision not
      contained in this Facility Letter.

	 	 	 
		18.2 	
      Variation and
cancellation

		 	 
		 	No variation, addition to, amendment or cancellation of
      any term contained in this Facility Letter, shall be effective unless
    reduced to writing and signed by or on behalf of the Parties.

	 	18.3 	
      Waivers and indulgences

	 	 	 
	 		
      No failure to exercise, and no delay in exercising on the
      part of either Party, of any right, power or privilege under this Facility
      Letter shall operate as a waiver thereof, nor shall any single or partial
      exercise of any right, power or privilege preclude any other or further
      exercise thereof, or the exercise of any other right, power or privilege.
      No waiver by either Party shall be effective unless reduced to writing and
      signed by or on behalf of the Party granting such waiver. The grant of any
      indulgence by a Party under this Facility Letter shall not constitute a
      waiver of any right by the grantor or prevent or adversely affect the
      exercise by the grantor of any existing or future right of the
    grantor.

	 	 	 
	 	18.4 	
      No representations

	 	 	 
	 		
      A Party may not rely on any representation or warranty
      which allegedly induced it to enter into this Facility Letter, unless the
      representation or warranty is recorded in this Facility Letter.

	 	 	 
	 	18.5 	
      Severability

	 	 	 
	 		
      Any provision in this Facility Letter which is or may
      become illegal, invalid or unenforceable in any jurisdiction affected by
      this Facility Letter shall, as to such jurisdiction, be ineffective to the
      extent of such prohibition or unenforceability and shall be treated pro
      non scripto and severed from the rest of this Facility Letter without
      invalidating the remaining provisions of this Facility Letter or affecting
      the validity or unenforceability of such provision in any other
      jurisdiction.

	 	 	 
	 	18.6 	
      Independent Advice

	 	 	 
	 		
      The Parties hereby acknowledge and agree that they have
      been free to obtain independent legal and other professional advice
      (including legal, financial and taxation advice) as to the nature and
      effect of the provisions of this Facility Letter and any
  Security.

	 	 	 
	 	18.7 	
      Applicable law

	 	 	 
	 		
      This Facility Letter shall be governed by and interpreted
      in accordance with the law of the Republic of South Africa.

	 	 	 
	 	18.8 	
      Jurisdiction

	 	 	 
	 		
      Each of the Parties irrevocably agrees that the High
      Court of the Republic of South Africa (South Gauteng High Court,
      Johannesburg) shall have jurisdiction to hear and determine any suit,
      action or proceeding, and to settle any disputes, which may arise
    out of or in connection with this Facility Letter and, for
      such purposes, irrevocably submits to the non-exclusive jurisdiction of
    such court.

	 	18.9 	
      Survival

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

GENERAL PROVISIONS

SECTION 2 – TERMS APPLICABLE TO SPECIFIC INSTRUMENTS

	1 	
      OVERDRAFT

	 	 	 
		1.1 	
      Rate

	 	 	 
			
      Unless otherwise agreed in writing by the Parties, the
      applicable rate will be the Prime Rate.

	 	 	 
		1.2 	
      Interest

	 	 	 
			
      Interest on the Outstanding Amount shall be calculated
      daily on the basis of a 365 (three hundred and sixty five) day year,
      irrespective of whether the year in question is a leap year and shall be
      payable monthly in arrear. Unless otherwise agreed in writing between the
      Parties, interest shall be paid to Nedbank by the debiting of the
      Borrower’s current account held at any Nedbank branch.

	 	 	 
		1.3 	
      Negotiable instruments

	 	 	 
			
      Nedbank shall be entitled to request the Borrower to draw
      negotiable instruments in favour of Nedbank for an amount up to the
      Outstanding Amount, at no additional cost to the Borrower.

	 	 	 
		1.4 	
      Duration of facility and repayment

	 	 	 
			
      Notwithstanding anything to the contrary contained in the
      Facility Letter or in any other agreement concluded between the Parties,
      the overdraft facility shall be payable to Nedbank on demand.

	 	 	 
		1.5 	
      Adjustment, Variation and Cancellation

	 	 	 
			
      Notwithstanding anything to the contrary contained in the
      Facility Letter, Nedbank shall be entitled, subsequent to a review of the
      Facilities in terms of clause 10 of the Facility Letter (Review of
      Facilities and Interest Rate), in its sole discretion and acting
      reasonably, to adjust, vary, add to, amend or cancel the overdraft
      facility, on prior written notice to the
Borrower.

	2 	
      FORWARD EXCHANGE CONTRACTS

	 	 	 
		2.1 	
      Rate

	 	 	 
			
      The applicable rate shall be the rate agreed to, whether
      in writing or otherwise, between the Parties.

		2.2 	
      Amount

	 	 	 
			
      This instrument is subject to the sub-limit set out in
      the Facility Letter, if any, or any other agreement concluded between the
      Parties. The sub-limit is based on the percentage of the aggregate amount
      of each forward exchange contract (currently 10% (ten percent)) that
      Nedbank in its discretion deems to be the risk.

	 	 	 
		2.3 	
      Period

	 	 	 
			
      The applicable period shall be as agreed to in writing
      between the Parties.

	 	 	 
		2.4 	
      Conditions Precedent

	 	 	 
			
      This instrument is subject to the signature by the
      Borrower of Nedbank’s standard documentation relating to forward exchange
      contracts from time to time.

	 	 	 
		2.5 	
      Notification to the SARB

	 	 	 
			
      The Borrower shall present documents confirming the
      relevant forward exchange transaction to its branch of Nedbank for
      endorsement within 14 (fourteen) days from the date of conclusion of each
      forward exchange contract, in accordance with current exchange control
      policy. However, if the Borrower has given a corporate letter of
      undertaking to the SARB, the Borrower shall only be obliged to furnish to
      its branch of Nedbank a letter setting out details of the transaction
      underlying the forward exchange contract.

	 	 	 
	3 	
      LETTERS OF GUARANTEE

	 	 	 
		3.1 	
      Rate/Commission

	 	 	 
			
      The applicable rate or commission shall be the rate
      agreed in writing between the Parties at the time of request for the
      issuance of a letter of guarantee.

	 	 	 
		3.2 	
      Amount

	 	 	 
			
      This instrument is subject to the sub-limit set out in
      the Facility Letter, if any, or in any other agreement concluded between
      the Parties.

	 	 	 
		3.3 	
      Period

	 	 	 
			
      The applicable period shall be the period agreed to at
      the time of request for the issue of a guarantee. Under no circumstances
      will Nedbank issue a guarantee which does not contain an expiry date or an
      ascertainable period.

	 	 	 
		3.4 	
      Nedbank’s Obligations

	 	 	 
			 Nedbank’s obligations shall be limited to the payment
        of money. Unless otherwise agreed in writing between the Parties, all
        letters of guarantee shall be payable on the beneficiary’s first
        demand in writing and/or the presentation of the relevant guarantee to
        Nedbank.

		3.5 	 Condition Precedent

	 	 	 
			 Guarantees shall only be issued after the signature
        by the Borrower of Nedbank Counter- Indemnity (Form 8.8) in respect of
        each guarantee or Nedbank’s Master Counter Indemnity Form, and/or
        any other forms as the case may be.

	 	 	 
		3.6 	 Other Terms

	 	 	 
			 Other terms shall be negotiated by the Parties at the
        time of request for the issue of a guarantee on terms and conditions acceptable
        to Nedbank.

	 	 	 
	4 	 ELECTRONIC BANKING FACILITIES

	 	 	 
		 The use of NetBank Business by the Borrower
        is subject to the signature by the Borrower of Nedbank’s standard
        Electronic Banking Services Agreement.

	RESOLUTION OF THE DIRECTORS OF NET1 APPLIED 
	TECHNOLOGIES SOUTH AFRICA LIMITED 
	(“the Company”) 
	  
	(Registration
      Number 2002/031446/06) 

IT WAS RESOLVED:

That any two of the following who are the designated
signatories’, being Cara van Straaten, David Hawley, Paul Encarnacao and Warren
Segall, be and are hereby the authorized signatories nominated by the Company to
do all such things and sign all such documents on behalf of the Company as they,
in their reasonably exercised discretion deem fit for all bank accounts held
with First National Bank, Nedbank Limited and ABSA Bank Limited, including those
accounts held by the Company and for the following wholly owned subsidiaries of
the Company:

	Cash Paymaster Services (Proprietary) Limited
  
	Cash Paymaster Services (Eastern Cape) (Proprietary) Limited;
  
	Cash Paymaster Services (Kwazulu Natal) (Proprietary) Limited;
  
	Cash Paymaster Services (Northern Cape) (Proprietary) Limited;
  
	Cash Paymaster Services (Northern) (Proprietary) Limited;
  
	Cash Paymaster Services (Northwest) (Proprietary) Limited;
  
	Sinqobile Security Services Gauteng (Proprietary) Limited;
  
	Prism Holdings Limited;
  
	Prism Payment Technologies (Proprietary) Limited;
  
	Easypay (Proprietary) Limited;
  
	RMT Systems (Proprietary) Limited;
  
	Moneyline Financial Services;
  
	New World Finance (Proprietary) Limited; and
  
	Friedland 035 Investments (Proprietary) Limited
  
	Clidet No 1030 (Proprietary) Limited 

The authority to the Bank will remain in force until rescinded
or amended in writing by the Company.

Signed on February 1st, 2010

	/s/ SCP Belamant
    	 	/s/ HG
      Kotze 
	SCP Belamant 	 	HG Kotze 
	DIRECTOR 	 	DIRECTOR 

	NET1 UNIVERSAL ELECTRONIC TECHNOLOGICAL SOLUTIONS
  
	(PROPRIETARY) LIMITED 
	(“the Company”) 
	  
	(Registration
      Number 2009/001034/07) 

IT WAS RESOLVED:

That the Company accepts the offer of banking facilities from
Nedbank Limited (“Nedbank”) on the terms and conditions set out in its letter to
the Company dated March 3rd, 2010 (“Facility Letter”).

IT WAS FURTHER RESOLVED:

That Catharina Wilhelmina van Straaten and David Ian Hawley in
their capacities of Financial Group Controller and Financial Group Manager,
respectively be and are hereby authorised to sign the aforesaid Facility Letter
and return in to Nedbank.

Signed on March 31st, 2010

/s/ BL Stewart
BL Stewart 
DIRECTOROsprey Ventures Inc.: Exhibit 10.1 - Filed by newsfilecorp.com

THIS SUBSCRIPTION AGREEMENT RELATES TO AN OFFERING OF A
CONVERTIBLE NOTE (THE “NOTE”) IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT
U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). 

THE NOTE TO WHICH THIS SUBSCRIPTION AGREEMENT (THE
“SUBSCRIPTION AGREEMENT”) RELATES HAS NOT BEEN REGISTERED UNDER THE 1933 ACT, OR
ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, IT MAY NOT BE OFFERED
OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO A U.S. PERSON EXCEPT
IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE NOTE MAY
NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. "UNITED STATES" AND
"U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT. 

SUBSCRIPTION AGREEMENT 
(Offshore Subscribers) 

	 	
      TO: 
	
      Osprey Ventures, Inc. (the “Company”), a company with
      offices at 8 Hart Avenue, 15 Floor, Flat D, Tsim Sha Tsui, Kowloon, Hong
      Kong 

Purchase of Convertible Note 

1.               
Subscription and Use of Proceeds 
On the basis of the
representations and warranties and subject to the terms and conditions set forth
herein, CITIGLORY CONSULTANTS LIMITED (the “Subscriber”) hereby
irrevocably subscribes for and agrees to purchase one convertible note (the
“Note”) from the Company for an aggregate purchase price of $350,000.00
(the “Subscription Proceeds”), substantially in the form attached to this
Subscription Agreement as Exhibit “A” (the subscription and agreement to
purchase being the “Subscription”).

1.1             
On the basis of the representations and warranties and subject to the terms and
conditions set forth herein, the Company hereby irrevocably agrees to sell the
Note to the Subscriber. 

1.2             
Subject to the terms hereof, the Subscription will be effective upon its
acceptance by the Company. 

1.3              Unless
otherwise provided, all dollar amounts referred to in this Subscription
Agreement are in lawful money of the United States of America. 

2.              
 Payment 

2.1             
The Subscription Proceeds pertaining to the purchase of the Note shall be paid
on or before the Closing Date (as defined in Section 4.1, below) by cheque or
wire transfer to the Company. 

3.               
Documents Required from Subscriber 

3.1      
       The Subscriber must: 

	 	(a) 	
      complete, sign and return to the Company an executed copy
      of this Subscription Agreement prior to the Closing Date;
  and,

- 2 - 

	 	(b) 	
      complete, sign and return to the Company as soon as
      possible, on request by the Company, any documents, questionnaires,
      notices and undertakings as may be required by regulatory authorities and
      applicable law

(collectively the “Transaction Documents.”) 

4.               
Closing 

4.1              There
shall be no formal closing ceremony with respect to the transactions
contemplated by this Agreement. Instead, the parties shall execute and exchange
the Transaction Documents by facsimile and email and the closing of the
transactions contemplated by this Agreement shall be deemed to have occurred
(the "Closing") on the date (the "Closing Date") that the Company
receives the Subscription Proceeds in full. There may be multiple Closings

5.               
Acknowledgements of Subscriber 

5.1              The
Subscriber acknowledges and agrees that: 

	 	(a) 	
      Neither the Note nor the shares of common stock
      (“Shares”) that may be issued upon a conversion of the Note (the
      Note and the Shares may be hereinafter referred to collectively as the
      “Securities”) have been or will be registered under the 1933 Act,
      or under any state securities or “blue sky” laws of any state of the
      United States, and, unless so registered, none of them may be offered or
      sold in the United States or, directly or indirectly, to a U.S. Person, as
      that term is defined in Regulation S under the 1933 Act (“Regulation
      S”), except in accordance with the provisions of Regulation S,
      pursuant to an effective registration statement under the 1933 Act, or
      pursuant to an exemption from, or in a transaction not subject to, the
      registration requirements of the 1933 Act and in each case in accordance
      with applicable state securities laws;

	 	 	 
	 	(b) 	
      the Company has not undertaken to, and will have no
      obligation to, register the Securities, or any of them, under the 1933
      Act;

	 	 	 
	 	(c) 	
      it has received and carefully read this Subscription
      Agreement;

	 	 	 
	 	(d) 	
      the decision to execute this Subscription Agreement and
      acquire the Note hereunder has not been based upon any oral or written
      representation as to fact or otherwise made by or on behalf of the
      Company, and such decision is based entirely upon a review of information
      (the adequacy of which is hereby acknowledged) about the Company that is
      available to any member of the public on the EDGAR database maintained by
      the U.S. Securities and Exchange Commission (the “SEC”) at
      www.sec.gov;

	 	 	 
	 	(e) 	
      there are risks associated with an investment in the
      Company including, by way of example and not in limitation, the specific
      risks identified in the Company’s most recent periodic reports filed with
      the SEC and available for viewing at the SEC’s website at
    www.SEC.gov;

	 	 	 
	 	(f) 	
      it and its advisor(s) have had a reasonable opportunity
      to ask questions of and receive answers from the Company in connection
      with the sale of the Note hereunder, and to obtain additional information,
      to the extent possessed or obtainable by the Company without unreasonable
      effort or expense;

	 	 	 
	 	(g) 	
      all information which the Subscriber has provided to the
      Company is correct and complete as of the date the Subscription Agreement
      is signed, and if there should be any change in such information prior to
      this Subscription Agreement being executed by the Company, the Subscriber
      will immediately provide the Company with such
  information;

- 3 - 

	 	(h) 	
      the Company is entitled to rely on the representations
      and warranties of the Subscriber contained in this Subscription Agreement
      and the Subscriber will hold the Company harmless from any loss or damage
      it may suffer as a result of the Subscriber’s failure to correctly
      complete this Subscription Agreement;

	 	 	 	 
	 	(i) 	
      the Subscriber has been advised to consult the
      Subscriber’s own legal, tax and other advisors with respect to the merits
      and risks of an investment in the Securities and with respect to
      applicable resale restrictions, and it is solely responsible (and the
      Company is not in any way responsible) for compliance with:

	 	 	 	 
	 		(i) 	
      any applicable laws of the jurisdiction in which the
      Subscriber is resident in connection with the distribution of the
      Securities hereunder, and

	 	 	 	 
	 		(ii) 	
      applicable resale
restrictions;

	 	(j) 	
      none of the Securities are listed on any stock exchange
      or automated dealer quotation system and no representation has been made
      to the Subscriber that any of the Securities will become listed on any
      stock exchange or automated dealer quotation system, except that currently
      certain market makers make market in the Shares of the Company on the OTC
      Bulletin Board operated by the Financial Industry Regulatory Authority
      (“FINRA”);

	 	 	 
	 	(k) 	
      none of the Securities may be offered or sold by the
      Subscriber to a U.S. Person (as defined in Section 6.2, below, or for the
      account or benefit of a U.S. Person (other than a distributor) prior to
      the end of the Distribution Compliance Period (as defined
  herein);

	 	 	 
	 	(l) 	
      the Subscriber is not acquiring the Note as a result of,
      and will not itself engage in, any “directed selling efforts” (as that
      term is defined in Regulation S under the 1933 Act) in the United States
      in respect of the Securities which would include any activities undertaken
      for the purpose of, or that could reasonably be expected to have the
      effect of, conditioning the market in the United States for the resale of
      any of the Securities; provided, however, that the Subscriber may sell or
      otherwise dispose of the Securities pursuant to registration thereof under
      the 1933 Act and any applicable state securities laws or under an
      exemption from such registration requirements;

	 	 	 
	 	(m) 	
      the Company will refuse to register any transfer of the
      Securities not made in accordance with the provisions of Regulation S,
      pursuant to an effective registration statement under the 1933 Act or
      pursuant to an available exemption from the registration requirements of
      the 1933 Act and in each case in accordance with applicable state
      securities laws;

	 	 	 
	 	(n) 	
      neither the SEC nor any other securities commission or
      similar regulatory authority has reviewed or passed on the merits of the
      Securities;

	 	 	 
	 	(o) 	
      no documents in connection with the sale of the Note
      hereunder have been reviewed by the SEC or any state securities
      administrators;

	 	 	 
	 	(p) 	
      there is no government or other insurance covering any of
      the Securities;

	 	 	 
	 	(q) 	
      the issuance and sale of the Securities to the Subscriber
      will not be completed if it would be unlawful or if, in the discretion of
      the Company acting reasonably, it is not in the best interests of the
      Company;

	 	 	 
	 	(r) 	
      the Subscriber is purchasing the Securities pursuant to
      an exemption from the registration and the prospectus requirements of
      applicable securities legislation on the basis that the Subscriber is not
      a resident of either the United States or Canada and, as a
    consequence:

	 	(i) 	
      is restricted from using most of the civil remedies
      available under securities legislation,

- 4 - 

	 	(ii) 	
      may not receive information that would otherwise be
      required to be provided under securities legislation, and

	 	 	 
	 	(iii) 	
      the Company is relieved from certain obligations that
      would otherwise apply under securities legislation;
and

	 	(s) 	
      the statutory and regulatory basis for the exemption from
      U.S. registration requirements claimed for the offer of the Note, although
      in technical compliance with Regulation S, would not be available if the
      offering is part of a plan or scheme to evade the registration provisions
      of the 1933 Act or any applicable state securities laws;
  .

6.               
Representations, Warranties and Covenants of the Subscriber

6.1              The
Subscriber hereby represents and warrants to and covenants with the Company
(which representations, warranties and covenants shall survive the Closing), and
acknowledges that the Company is relying thereon, that: 

	 	(a) 	
      the Subscriber is not a U.S. Person as that term is
      defined in Regulation S;

	 	 	 
	 	(b) 	
      the Subscriber is not acquiring the Note for the account
      or benefit of, directly or indirectly, any U.S. Person as that term is
      defined in Regulation S;

	 	 	 
	 	(c) 	
      the Subscriber is resident in the jurisdiction set out
      under the heading “Name and Address of Subscriber” on the signature page
      of this Subscription Agreement and the sale of the Securities to the
      Subscriber as contemplated in this Subscription Agreement complies with or
      is exempt from the applicable securities legislation of the jurisdiction
      of residence of the Subscriber;

	 	 	 
	 	(d) 	
      the Subscriber has the legal capacity and competence to
      enter into and execute this Subscription Agreement and to take all actions
      required pursuant hereto and, if the Subscriber is a corporation, it is
      duly incorporated and validly subsisting under the laws of its
      jurisdiction of incorporation and all necessary approvals by its
      directors, shareholders and others have been obtained to authorize
      execution and performance of this Subscription Agreement on behalf of the
      Subscriber;

	 	 	 
	 	(e) 	
      if the Subscriber is a corporation or other entity, the
      entering into of this Subscription Agreement and the transactions
      contemplated hereby do not and will not result in the violation of any of
      the terms and provisions of any law applicable to, or the constating
      documents of, the Subscriber or of any agreement, written or oral, to
      which the Subscriber may be a party or by which the Subscriber is or may
      be bound;

	 	 	 
	 	(f) 	
      the Subscriber has duly executed and delivered this
      Subscription Agreement and upon acceptance thereof by the Company it will
      constitute a valid and binding agreement of the Subscriber enforceable
      against the Subscriber in accordance with its terms;

	 	 	 
	 	(g) 	
      the Subscriber is acquiring the Securities as principal
      for its own account for investment purposes only and not for the account
      of any other person and not for distribution, assignment or resale to
      others, and no other person has a direct or indirect beneficial interest
      in such Securities, and it has not subdivided its interest in the
      Securities with any other person;

	 	 	 
	 	(h) 	
      the Subscriber is outside the United States when
      receiving and executing this Subscription Agreement and is acquiring the
      Note as principal for the Subscriber’s own account for investment purposes
      only, and not with a view to, or for, resale, distribution or
      fractionalisation thereof, in whole or in part, and no other person has a
      direct or indirect beneficial interest in the Securities;

	 	 	 
	 	(i) 	
      the Subscriber is aware that an investment in the Company
      is speculative and involves certain risks, including the possible loss of
      the entire investment and it has carefully read and
  considered

- 5 - 

	 		
      the matters set forth under the heading “Risk Factors”
      appearing in the Company’s Forms 10-K, 10-Q, 8-K and any other filings
      filed with the SEC;

	 	 	 
	 	(j) 	
      the Subscriber has made an independent examination and
      investigation of an investment in the Securities and the Company and has
      depended on the advice of its legal and financial advisors and agrees that
      the Company will not be responsible in any way whatsoever for the
      Subscriber’s decision to invest in the Securities and the
  Company;

	 	 	 
	 	(k) 	
      the Subscriber (i) has adequate net worth and means of
      providing for its current financial needs and possible personal
      contingencies, (ii) has no need for liquidity in this investment, and
      (iii) is able to bear the economic risks of an investment in the
      Securities for an indefinite period of time;

	 	 	 
	 	(l) 	
      the Subscriber understands and agrees that the Company
      and others will rely upon the truth and accuracy of the acknowledgements,
      representations and agreements contained in this Subscription Agreement
      and agrees that if any of such acknowledgements, representations and
      agreements are no longer accurate or have been breached, the Subscriber
      shall promptly notify the Company;

	 	 	 
	 	(m) 	
      the Subscriber has the legal capacity and competence to
      enter into and execute this Subscription Agreement and to take all actions
      required pursuant hereto;

	 	 	 
	 	(n) 	
      the Subscriber has duly executed and delivered this
      Subscription Agreement and it constitutes a valid and binding agreement of
      the Subscriber enforceable against the Subscriber in accordance with its
      terms;

	 	 	 
	 	(o) 	
      the Subscriber is not an underwriter of, or dealer in,
      the Company’s Shares, nor is the Subscriber participating, pursuant to a
      contractual agreement or otherwise, in the distribution of any of the
      Shares;

	 	 	 
	 	(p) 	
      the Subscriber understands and agrees that offers and
      sales of any of the Securities prior to the expiration of restricted
      period after the date of original issuance of the Securities (the six
      month period hereinafter referred to as the “Distribution Compliance
      Period”) shall only be made in compliance with the safe harbor
      provisions set forth in Regulation S, pursuant to the registration
      provisions of the 1933 Act or an exemption therefrom, and that all offers
      and sales after the Distribution Compliance Period shall be made only in
      compliance with the registration provisions of the 1933 Act or an
      exemption therefrom and in each case only in accordance with applicable
      state securities laws;

	 	 	 
	 	(q) 	
      the Subscriber agrees not to engage in any hedging
      transactions involving any of the Securities unless such transactions are
      in compliance with the provisions of the 1933 Act and in each case only in
      accordance with applicable state securities laws;

	 	 	 
	 	(r) 	
      the Subscriber (i) is able to fend for itself in the
      Subscription; (ii) has such knowledge and experience in financial and
      business matters as to be capable of evaluating the merits and risks of
      its investment in the Securities and the Company; and (iii) has the
      ability to bear the economic risks of its prospective investment and can
      afford the complete loss of such investment;

	 	 	 
	 	(s) 	
      the Subscriber will indemnify the Company against, and
      will hold the Company and, where applicable, its respective directors,
      officers, employees, agents, advisors and shareholders harmless from, any
      and all loss, liability, claim, damage and expense whatsoever (including,
      but not limited to, any and all fees, costs and expenses whatsoever
      reasonably incurred in investigating, preparing or defending against any
      claim, lawsuit, administrative proceeding or investigation whether
      commenced or threatened) arising out of or based upon any representation
      or warranty of the Subscriber contained herein or in any document
      furnished by the Subscriber to the Company in connection herewith being
      untrue in any material respect or any breach or
failure

- 6 - 

	 		
      by the Subscriber to comply with any covenant or
      agreement made by the Subscriber to the Company in connection
      therewith;

	 	 	 	 
	 	(t) 	
      the Subscriber is not aware of any advertisement of any
      of the Securities and is not acquiring the Securities as a result of any
      form of general solicitation or general advertising including
      advertisements, articles, notices or other communications published in any
      newspaper, magazine or similar media or broadcast over radio or
      television, or any seminar or meeting whose attendees have been invited by
      general solicitation or general advertising; and

	 	 	 	 
	 	(u) 	
      no person has made to the Subscriber any written or oral
      representations:

	 	 	 	 
	 		(i) 	
      that any person will resell or repurchase any of the
      Securities,

	 	 	 	 
	 		(ii) 	
      that any person will refund the purchase price of any of
      the Securities,

	 	 	 	 
	 		(iii) 	
      as to the future price or value of any of the Securities,
      or

	 	 	 	 
	 		(iv) 	
      that any of the Securities will be listed and posted for
      trading on any stock exchange or automated dealer quotation system or that
      application has been made to list and post any of the Securities of the
      Company on any stock exchange or automated dealer quotation system, except
      that currently the Company’s common shares are quoted on the over-the-
      counter market operated by the Over-The-Counter Bulletin Board operated by
      FINRA.

6.2              In
this Subscription Agreement, the term “U.S. Person” shall have the meaning
ascribed thereto in Regulation S. 

7.               
Acknowledgement and Waiver 

7.1              The
Subscriber has acknowledged that the decision to purchase the Securities was
solely made on the basis of information available to the Subscriber on the EDGAR
database maintained by the SEC at www.sec.gov. The Subscriber hereby
waives, to the fullest extent permitted by law, any rights of withdrawal,
rescission or compensation for damages to which the Subscriber might be entitled
in connection with the distribution of the Securities. 

8.              
 Legending of Subject Securities 

8.1              The
Subscriber hereby acknowledges that that upon the issuance thereof, and until
such time as the same is no longer required under the applicable securities laws
and regulations, the certificates representing any of the Securities will bear a
legend in substantially the following form: 

“THESE SECURITIES WERE ISSUED IN AN
OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN)
PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “1933 ACT”).

ACCORDINGLY, NONE OF THE SECURITIES TO
WHICH THIS CERTIFICATE RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY
U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR
SOLD IN THE UNITED STATES (AS DEFINED HEREIN) OR, DIRECTLY OR INDIRECTLY, TO
U.S. PERSONS (AS DEFINED HEREIN) EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT OR PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING
TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN ACCORDANCE
WITH THE 1933 ACT. “UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY
REGULATION S UNDER THE 1933 ACT.” 

- 7 - 

8.2              The
Subscriber hereby acknowledges and agrees to the Company making a notation on
its records or giving instructions to the registrar and transfer agent of the
Company in order to implement the restrictions on transfer set forth and
described in this Subscription Agreement. 

9.               
Costs 

9.1              The
Subscriber acknowledges and agrees that all costs and expenses incurred by the
Subscriber (including any fees and disbursements of any special counsel retained
by the Subscriber) relating to the purchase of the Note or to the conversion of
the Note or the Conversion Shares shall be borne by the Subscriber. 

10.             
Governing Law 

10.1            This
Subscription Agreement is governed by the laws of the State of Wyoming and the
federal laws applicable thereto. The Subscriber, in its personal or corporate
capacity and, if applicable, on behalf of each beneficial purchaser for whom it
is acting, irrevocably attorns to the jurisdiction of the courts of the State of
Wyoming. 

11.             
Survival 

11.1            This
Subscription Agreement, including without limitation the representations,
warranties and covenants contained herein, shall survive and continue in full
force and effect and be binding upon the parties hereto notwithstanding the
completion of the purchase of the Note by the Subscriber pursuant hereto. 

12.             
Assignment 

12.1            This
Subscription Agreement is assignable. 

13.             
Severability 

13.1            The
invalidity or unenforceability of any particular provision of this Subscription
Agreement shall not affect or limit the validity or enforceability of the
remaining provisions of this Subscription Agreement. 

14.            
 Entire Agreement 

14.1           
Except as expressly provided in this Subscription Agreement and in the
agreements, instruments and other documents contemplated or provided for herein,
this Subscription Agreement contains the entire agreement between the parties
with respect to the sale of the Securities and there are no other terms,
conditions, representations or warranties, whether expressed, implied, oral or
written, by statute or common law, by the Company or by anyone else. This
subscription may only be amended by instrument in writing signed by the parties
hereto. 

15.             
Notices 

15.1           
All notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given if mailed or transmitted by any standard form of
telecommunication. Notices to the Subscriber shall be directed to the address on
the signature page of this Subscription Agreement and notices to the Company
shall be directed to it at Osprey Ventures, Inc., 8 Hart Avenue, 15 Floor, Flat
D, Tsim Sha Tsui, Kowloon, Hong Kong, Attention: President. 

16.            
 Counterparts and Electronic Means 

16.1           
This Subscription Agreement may be executed in any number of counterparts, each
of which, when so executed and delivered, shall constitute an original and all
of which together shall constitute one instrument. Delivery of an executed copy
of this Subscription Agreement by electronic facsimile transmission or 

- 8 - 

other means of electronic communication capable of producing a
printed copy will be deemed to be execution and delivery of this Subscription
Agreement as of the date hereinafter set forth. 

17.             
Registration Instructions 

17.1            The
Subscriber hereby directs the Company to cause any Note issued pursuant to this
Subscription Agreement to be registered on the books of the Company as directed
on the signature page of this Agreement. 

IN WITNESS WHEREOF the Subscriber has duly executed this
Subscription Agreement as of the date of acceptance by the Company. 

___________________________________________ 
Name of Subscriber
– Please type or print) 

___________________________________________ 
(Signature)

___________________________________________ 
(Address of
Subscriber) 

___________________________________________ 
(City, State or
Province, Postal Code of Subscriber) 

___________________________________________ 
(Country of
Subscriber) 

___________________________________________ 
(Fax and/or E-mail
Address of Subscriber) 

- 9 - 

Registration Information (if different from above) 

___________________________________________ 
(Name of
Subscriber – Please type or print) 

___________________________________________ 
(Signature
and, if applicable, Office) 

___________________________________________ 
(Address of
Subscriber) 

___________________________________________ 
(City, State
or Province, Postal Code of Subscriber) 

___________________________________________ 
(Country of
Subscriber) 

___________________________________________ 
(Fax and/or E-mail
Address of Subscriber) 

A C C E P T A N C E 

The above-mentioned Subscription Agreement in respect of the
Note is hereby accepted by Osprey Ventures, Inc. 

DATED at Hong Kong, the 23 day of August, 2010. 

OSPREY VENTURES, INC. 

 

Per:   
________________________________________
          
Authorized Signatory 

EXHIBIT “A” 

Form of Convertible Note 

THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES INTO
WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION
TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN) PURSUANT TO REGULATION
S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933
ACT").

NONE OF THE SECURITIES REPRESENTED HEREBY NOR THE SECURITIES
INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE 1933
ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE
OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO A U.S.
PERSON EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933
ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS
INVOLVING THIS SECURITY AND THE SECURITIES INTO WHICH THIS SECURITY IS
CONVERTIBLE MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. "UNITED
STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933
ACT.

Dated: August 23, 2010 

U.S. $350,000.00 

CONVERTIBLE NOTE 

FOR VALUE RECEIVED, OSPREY VENTURES, INC. (the
“Company”) promises to pay to CITIGLORY CONSULTANTS LIMITED or its
registered assigns (the “Holder”), the principal sum of THREE
HUNDRED FIFTY THOUSAND Dollars ($350,000.00) in lawful currency of the
United States (the “Principal Amount”) on August 23, 2015 or such earlier
date as the Note may be permitted to be repaid as provided hereunder (the
“Maturity Date”), with no interest, to the Holder on the earlier of (i)
the Conversion Date (as hereafter defined) and (ii) the Maturity Date (except
that, if any such date is not a Business Day, then such payment shall be due on
the next succeeding Business Day) in cash. The Company may prepay any portion
of the Principal Amount without the prior written consent of the Holder.

This Note is subject to the following additional provisions:

1.               
Other Agreements. 

1.1             
This Note has been issued pursuant to a subscription agreement between the
Company and the Holder dated August 23, 2010 (the “Subscription
Agreement”) pursuant to which the Holder purchased this Note, and this Note
is subject in all respects to the terms of the Subscription Agreement and
incorporates the terms of the Subscription Agreement to the extent that they do
not conflict with the terms of this Note. This Note may be transferred or
assigned. 

1 

2.              
 Events of Default. 

2.1             
“Event of Default”, wherever used herein, means any one of the following
events (whatever the reason and whether it shall be voluntary or involuntary or
effected by operation of law or pursuant to any judgment, decree or order of any
court, or any order, rule or regulation of any administrative or governmental
body): 

	 	(a) 	
      any default in the payment of the Principal Amount of
      this Note, free of any claim of subordination, as and when the same shall
      become due and payable (whether on a Conversion Date or the Maturity Date
      or by acceleration or otherwise);

	 	 	 
	 	(b) 	
      the Company shall fail to observe or perform any other
      covenant or agreement contained in this Note or the Subscription Agreement
      which failure is not cured, if possible to cure, within 30 calendar days
      after notice of such default is sent by the Holder to the Company;
    or

	 	 	 
	 	(c) 	
      the Company or any of its subsidiaries (each a
      “Subsidiary”) shall commence, or there shall be commenced against
      the Company or any Subsidiary a case under any applicable bankruptcy or
      insolvency laws as now or hereafter in effect or any successor thereto, or
      the Company or any Subsidiary commences any other proceeding under any
      reorganization, arrangement, adjustment of debt, relief of debtors,
      dissolution, insolvency or liquidation or similar law of any jurisdiction
      whether now or hereafter in effect relating to the Company or any
      Subsidiary or there is commenced against the Company or any Subsidiary any
      such bankruptcy, insolvency or other proceeding which remains undismissed
      for a period of 60 days; or the Company or any Subsidiary is adjudicated
      insolvent or bankrupt; or any order of relief or other order approving any
      such case or proceeding is entered; or the Company or any Subsidiary
      suffers any appointment of any custodian or the like for it or any
      substantial part of its property which continues undischarged or unstayed
      for a period of 60 days; or the Company or any Subsidiary makes a general
      assignment for the benefit of creditors; or the Company shall fail to pay,
      or shall state that it is unable to pay, or shall be unable to pay, its
      debts generally as they become due; or the Company or any Subsidiary shall
      call a meeting of its creditors with a view to arranging a composition,
      adjustment or restructuring of its debts; or the Company or any Subsidiary
      shall by any act or failure to act expressly indicate its consent to,
      approval of or acquiescence in any of the foregoing; or any corporate or
      other action is taken by the Company or any Subsidiary for the purpose of
      effecting any of the foregoing.

2.2             
If any Event of Default occurs, the full Principal Amount, together with
interest and other amounts owing in respect thereof to the date of acceleration
shall become, at the Holder’s election, immediately due and payable in cash.
Upon payment of the full Principal Amount, together with interest and other
amounts owing in respect thereof, in accordance herewith, this Note shall
promptly be surrendered to or as directed by the Company. The Holder need not
provide and the Company hereby waives any presentment, demand, protest or other
notice of any kind, and the Holder may immediately and without expiration of any
grace period enforce any and all of its rights and remedies hereunder and all
other remedies available to it under applicable law. Such declaration may be
rescinded and annulled by the Holder at any time prior to payment hereunder and
the Holder shall have all rights as a Note holder until such time, if any, as
the full payment under this Section shall have been received by it. No such
rescission or annulment shall affect any subsequent Event of Default or impair
any right consequent thereon. 

3.               
Conversion. 

3.1             
At any time after the Financing Date until this Note is no longer outstanding,
this Note may be converted into Conversion Shares at any time and from
time-to-time, in whole or in part, at the option of the Holder. The Holder shall
effect conversions by delivering to the Company the form of Notice of Conversion
attached hereto as Annex A (a “Notice of Conversion”), specifying
therein the amount of principal to be converted and the date on which such
conversion is to be effected (a “Conversion Date”); provided that the
date upon which any such conversion may be effected may not be less than 21
calendar days following the date of delivery of the Notice of Conversion. If no
Conversion Date is specified in a Notice of Conversion, the Conversion Date
shall be the date that is 21 calendar days after such Notice of Conversion is
delivered to the Company. To effect conversions hereunder, the Holder shall not
be required to physically surrender the Note to the Company unless the entire

2 

principal amount of this Note has been so converted.
Conversions hereunder shall have the effect of lowering the outstanding
principal amount of this Note in an amount equal to the applicable conversion.
The Holder and the Company shall maintain records showing the principal amount
converted and the date of such conversions. The Company shall deliver any
objection to any Notice of Conversion within 10 business days of receipt of such
notice. The Holder, by acceptance of this Note, acknowledges and agrees that, by
reason of the provisions of this paragraph, following conversion of a portion of
this Note, the unpaid and unconverted principal amount of this Note may be less
than the amount stated on the face hereof.

3.2             
The number of Conversion Shares issuable upon a conversion of any outstanding
principal under the Note shall be determined by the quotient obtained by
dividing (x) by (y) where (x) is equal to the amount of outstanding principal to
be converted and (y) is the Conversion Price (as hereinafter defined). 

3.3             
Not later than five Trading Days after any Conversion Date, the Company will
deliver to the Holder a certificate or certificates representing the Conversion
Shares (bearing such legends as may be required by applicable law and those
required by the Subscription Agreement) representing the number of Conversion
Shares being acquired upon the conversion of Note. 

3.4             
The conversion price (the “Conversion Price”) in effect on any Conversion
Date shall be shall mean 75% of the average Closing Bid Prices for the ten
Trading Days immediately preceding the Conversion Date. The term "Closing Bid
Price" shall mean, on any particular date (i) the closing bid price per
share of the Common Stock on such date on the OTC Bulletin Board or another
registered national stock exchange on which the Common Stock is then listed, or
if there is no such price on such date, then the closing bid price on such
exchange or quotation system on the date nearest preceding such date, or (ii) if
the Common Stock is not listed then on the OTC Bulletin Board or any registered
national stock exchange, the closing bid price for a share of Common Stock in
the over-the-counter market, as reported by the OTC Bulletin Board or in the
National Quotation Bureau Incorporated or similar organization or agency
succeeding to its functions of reporting prices) at the close of business on
such date, or (iii) if the Common Stock is not then reported by the OTC Bulletin
Board or the National Quotation Bureau Incorporated (or similar organization or
agency succeeding to its functions of reporting prices), then the average of the
"Pink Sheet" quotes for the relevant conversion period, as determined in good
faith by the Holder, or (iv) if the Common Stock is not then publicly traded the
fair market value of a share of Common Stock as determined by the Holder and
reasonably acceptable to the Company. 

3.5             
At any time after the Financing Date until this Note is no longer outstanding,
this Note may be converted into Conversion Shares at any time and from
time-to-time, in whole or in part, at the option of the Company. The Company
shall effect conversions by delivering to the Holder written notice of
conversion specifying therein the amount of principal to be converted and the
date on which such conversion is to be effected (a “Conversion
Date”);

3.6             
Limitations on Conversions by Company. Unless the Holder otherwise
directs the Company, the Company shall not effect any conversion of this Note,
and the Holder shall not have the right to convert any portion of this Note
pursuant to Section 3.1 hereto, to the extent that after giving effect to such
conversion, the Holder would beneficially own, for purposes of the Securities
Act of 1934, as amended (the "Exchange Act") , in excess of 9.99% (the "Maximum
Percentage") of the number of Common Shares outstanding immediately after giving
effect to such conversion. For purposes of the foregoing sentence, the number of
Common Shares beneficially owned by the Holder shall include the number of
Common Shares issuable upon conversion of this Note with respect to which the
determination of such sentence is being made, but shall exclude the number of
Common Shares which would be issuable upon (A) conversion of the remaining,
nonconverted portion of this Note beneficially owned by the Holder and (B)
exercise or conversion of the unexercised or nonconverted portion of any other
securities of the Company (including, without limitation, any Other Notes or
warrants) subject to a limitation on conversion or exercise analogous to the
limitation contained herein beneficially owned by the Holder. Except as set
forth in the preceding sentence, for purposes of this Section 3, beneficial
ownership pursuant to the Exchange Act shall be calculated in accordance with
Section 13(d) of the Exchange Act, except as set forth in the preceding
sentence. For purposes of this Section 3 in determining the number of
outstanding Common Shares, the Holder may rely on the number of outstanding
Common Shares as reflected in (x) the Company's most recent Form 10-K, Form 10-Q
or Form 8-K, as the case may be, (y) a more recent public announcement by the
Company or (z) any other notice by the Company or the Transfer Agent setting
forth the number of Common Shares outstanding. For any reason at any time, upon
the written or oral request of the Holder, the Company shall within two (2)
Business Days confirm orally and in writing 

3 

to the Holder the number of Common Shares then outstanding. In
any case, the number of outstanding Common Shares shall be determined after
giving effect to the conversion or exercise of securities of the Company,
including this Note, by the Holder or its affiliates since the date as of which
such number of outstanding Common Shares was reported. By written notice to the
Company, the Holder may increase or decrease the Maximum Percentage to any other
percentage specified in such notice; provided that (i) any such increase will
not be effective until the sixty-first (61st) day after such notice is delivered
to the Company, and (ii) any such increase or decrease will apply only to the
Holder and not to any other holder of Notes. 

3.7             
The Company covenants that it will at all times reserve and keep available out
of its authorized and unissued shares of Common Stock such number of shares as
is necessary in order to ensure that a sufficient number are available for the
purpose of issuance of Conversion Shares upon conversion of this Note, free from
preemptive rights or any other actual contingent purchase rights of Persons
other than the Holder. The Company covenants that all Conversion Shares shall,
upon issue, be duly and validly authorized, issued and fully paid and
non-assessable. 

3.8             
Upon a conversion hereunder the Company shall not be required to issue stock
certificates representing fractions of any Conversion Shares, and the number of
Conversion Shares shall be rounded up or down to the nearest whole number. 

3.9             
If the Company, at any time while this Note is outstanding: (A) pays a stock
dividend or otherwise makes a distribution or distributions in shares of its
Common Stock or any other equity or equity equivalent securities payable in
shares of Common Stock, (B) subdivides outstanding shares of Common Stock into a
larger number of shares, (C) combines (including by way of reverse stock split)
outstanding shares of Common Stock into a smaller number of shares, or (D)
issues by reclassification of shares of the Common Stock any shares of capital
stock of the Company, then the Conversion Price shall be multiplied by a
fraction of which the numerator shall be the number of shares of Common Stock
(excluding treasury shares, if any) outstanding before such event and of which
the denominator shall be the number of shares of Common Stock outstanding after
such event. Any adjustment made pursuant to this Section shall become effective
immediately after the record date for the determination of stockholders entitled
to receive such dividend or distribution and shall become effective immediately
after the effective date in the case of a subdivision, combination or
re-classification. 

4.               
Repayment 

4.1             
Repayment of this Note shall be due, in whole or in part, on demand by written
Notice from the Holder to the Company at any time following 30 days of the
Financing Date. 

5.               
Notices 

5.1             
Any and all notices or other communications or deliveries to be provided by the
Holder hereunder, including, without limitation, any Notice of Conversion, shall
be in writing and delivered personally, by facsimile, sent by a nationally
recognized overnight courier service, addressed to the Company, at the address
set forth above, facsimile number 877-755-9766, Attn: President or such
other address or facsimile number as the Company may specify for such purposes
by notice to the Holder delivered in accordance with this Section. Any and all
notices or other communications or deliveries to be provided by the Company
hereunder shall be in writing and delivered personally, by facsimile, sent by a
nationally recognized overnight courier service addressed to the Holder at the
facsimile telephone number or address of such Holder appearing on the books of
the Company, or if no such facsimile telephone number or address appears, at the
address of the Holder to which this Note was delivered. Any notice or other
communication or deliveries hereunder shall be deemed given and effective on the
earliest of (i) the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile telephone number specified in this
Section prior to 5:30 p.m. (Pacific Standard Time), (ii) the date after the date
of transmission, if such notice or communication is delivered via facsimile at
the facsimile telephone number specified in this Section later than 5:30 p.m.
(Pacific Standard Time) on any date and earlier than 11:59 p.m. (Pacific
Standard Time) on such date, (iii) the second business day following the date of
mailing, if sent by nationally recognized overnight courier service, or (iv)
upon actual receipt by the party to whom such notice is required to be given.

4 

6.               
Definitions.

6.1             
For the purposes hereof, in addition to the terms defined elsewhere in this
Note: (i) capitalized terms not otherwise defined herein have the meanings given
to such terms in the Subscription Agreement, and (ii) the following terms shall
have the following meanings: 

	 	(a) 	
      “Business Day” means any day except Saturday,
      Sunday and any day which shall be a federal legal holiday in the United
      States or a day on which banking institutions in the State of Wyoming are
      authorized or required by law or other government action to
  close.

	 	 	 
	 	(b) 	
      “Common Stock” means the common stock, par value
      $0.001 per share, of the Company and stock of any other class into which
      such shares may hereafter have been reclassified or changed.

	 	 	 
	 	(c) 	
      “Conversion Date” has the meaning set forth in
      Section 3.5 hereof.

	 	 	 
	 	(d) 	
      “Conversion Price” has the meaning set forth in
      Section 3.4 hereof.

	 	 	 
	 	(e) 	
      “Conversion Share” means shares of the Company’s
      Common Stock into which principal and Interest due pursuant to this Note
      may be converted.

	 	 	 
	 	(f) 	
      “Exchange Act” means the Securities Exchange Act
      of 1934, as amended.

	 	 	 
	 	(g) 	
      “Financing Date” means the date on which the
      Principal Amount is delivered to the Company by the Investor.

	 	 	 
	 	(h) 	
      “Securities Act” means the Securities Act of 1933,
      as amended, and the rules and regulations promulgated
thereunder.

	 	 	 
	 	(i) 	
      “Trading Day” means a day on which the shares of
      Common Stock are traded on a trading market on which the shares of Common
      Stock are then listed or quoted, provided, that in the event that
      the shares of Common Stock are not listed or quoted, then Trading Day
      shall mean a Business Day.

7.               
Replacement of Note if lost or destroyed. 

If this Note shall be mutilated, lost, stolen or destroyed, the
Company shall execute and deliver, in exchange and substitution for and upon
cancellation of a mutilated Note, or in lieu of or in substitution for a lost,
stolen or destroyed Note, a new Note for the principal amount of this Note so
mutilated, lost, stolen or destroyed but only upon receipt of evidence of such
loss, theft or destruction of such Note, and of the ownership hereof, and
indemnity, if requested, all reasonably satisfactory to the Company. 

8.               
Governing law. 

All questions concerning the construction, validity,
enforcement and interpretation of this Note shall be governed by and construed
and enforced in accordance with the internal laws of the State of Wyoming,
without regard to the principles of conflicts of law thereof. 

9.               
Waivers 

Any waiver by the Company or the Holder of a breach of any
provision of this Note shall not operate as or be construed to be a waiver of
any other breach of such provision or of any breach of any other provision of
this Note. The failure of the Company or the Holder to insist upon strict
adherence to any term of this Note on one or more occasions shall not be
considered a waiver or deprive that party of the right thereafter to insist upon
strict adherence to that term or any other term of this Note. Any waiver must be
in writing. 

5 

10.             
Usury 

If any provision of this Note is invalid, illegal or
unenforceable, the balance of this Note shall remain in effect, and if any
provision is inapplicable to any Person or circumstance, it shall nevertheless
remain applicable to all other Persons and circumstances. If it shall be found
that any interest or other amount deemed interest due hereunder violates
applicable laws governing usury, the applicable rate of interest due hereunder
shall automatically be lowered to equal the maximum permitted rate of interest.
The Company covenants (to the extent that it may lawfully do so) that it shall
not at any time insist upon, plead, or in any manner whatsoever claim or take
the benefit or advantage of, any stay, extension or usury law or other law which
would prohibit or forgive the Company from paying all or any portion of the
principal of or interest on this Note as contemplated herein, wherever enacted,
now or at any time hereafter in force, or which may affect the covenants or the
performance of this indenture, and the Company (to the extent it may lawfully do
so) hereby expressly waives all benefits or advantage of any such law, and
covenants that it will not, by resort to any such law, hinder, delay or impeded
the execution of any power herein granted to the Holder, but will suffer and
permit the execution of every such as though no such law has been enacted. 

11.             
Next business day 

Whenever any payment or other obligation hereunder shall be due
on a day other than a Business Day, such payment shall be made on the next
succeeding Business Day. 

IN WITNESS WHEREOF, the Company has caused this Convertible
Note to be duly executed by a duly authorized officer as of the date first above
indicated. 

OSPREY VENTURES, INC. 

 

By: 
___________________________________
          
Ma Cheng Ji 
          
title: President 

6 

ANNEX A 

NOTICE OF CONVERSION 

The undersigned hereby elects to convert principal under the
Convertible Note of Osprey Ventures, Inc., a Wyoming corporation (the
“Company”), due on August 23, 2015, into shares of the Company’s common
stock (each a “Share”) as of the date written below. The undersigned will pay
all transfer taxes, intangible or other taxes payable with respect hereto and is
delivering herewith such certificates and opinions as reasonably requested by
the Company in accordance therewith. No fee will be charged to the holder for
any conversion. 

The undersigned agrees to comply with the prospectus delivery
requirements under the applicable securities laws in connection with any
transfer of the aforesaid Shares. 

Conversion calculations: 

 

Date to Effect Conversion: 

Principal Amount of Note to be Converted: 

Accrued Interest to be Converted: 

Number of Shares to be issued: 

Signature: 

 

Name: 

 

Address:

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