Document:

<PAGE>
                                                                Exhibit 10.16

                                    AGREEMENT

                                     between

                               NEDCOR BANK LIMITED
                           of 105 West Street, Sandton

                                       and

                       NET1 PRODUCTS (PROPRIETARY) LIMITED
                    of 4th Floor North Wing, President Place,
                      Cnr Jan Smuts Avenue and Bolton Road,
                             Rosebank, Johannesburg.

WHEREBY THE PARTIES AGREE AS FOLLOWS-

1. INTERPRETATION

1.1.      In this agreement, unless otherwise required or indicated by the
          context, any reference to the singular shall include the plural and
          vice versa, any reference to a gender shall include the other genders,
          any reference to a natural person shall include juristic persons and
          vice versa, and the following terms shall have the meanings assigned
          to them hereunder, namely-

1.1.1.         "ABSA" means ABSA Bank Limited together with all its wholly-owned
               subsidiaries;

1.1.2.         "assignment date" means 8 February 1996, being the date with
               effect from which Net1 assigned the patent to Messrs SCP Belamant
               and AP Mansvelt and they in turn assigned the patent to Holdings;

1.1.3.         "bank" means a bank as defined in the Banks Act 94 of 1990, as
               amended;

1.1.4.         "copyrighted works" means the UEPS (as it was at the effective
               date) consisting of programmes and programme modules written for
               smart cards
<PAGE>
                                                                               2

               and terminals; details of such programmes and programme modules
               which provide functions as listed in Appendix 1 hereto;

1.1.5.         "copyrighted products" means the copyrighted works and the
               Megalink System and all works embodied therein as at the
               effective date;

1.1.6.         "effective date" means, notwithstanding the date of signature of
               this agreement, 24 September 1992;

1.1.7.         "FTMs" means Funds Transfer Machines which customers will access
               with personalised smart cards in order to utilise the UEPS and
               carry out certain transactions thereon;

1.1.8.         "FNB" means First National Bank of South Africa Limited together
               with all its wholly-owned subsidiaries;

1.1.9.         "Holdings" means Net1 Investment Holdings (Pty) Limited
               (Registration No. 95/03030/07);

1.1.10.        "licence" means the licence granted to Nedcor under the patent on
               the effective date;

1.1.11.        "licensed bank" means any bank, other than Nedcor, that is
               granted a licence under the patent to use the UEPS;

1.1.12.        "Megalink System", (previously known as the Metrolink System"),
               means the switching and settlement system (as it was at the
               effective date) necessary to operate the UEPS;

1.1.13.        "Megalink System documentation" means-

1.1.13.1.           the set of documents, printout specifications, file
                    specifications and all manuals which collectively contain a
                    complete description and definition of all operating
                    conditions of the Megalink System;

1.1.13.2.           all source code listings of the programmes and programme
                    modules making up the Megalink System (including the most
                    current) being, or to be, used by Nedcor, in the language in
                    which they are written and in such detail as to enable Net1
                    to operate, maintain and modify the Megalink System;

1.1.13.3.           operating manuals and user guides;

1.1.14.        "Nedcor" means Nedcor Bank Limited (Registration No. 51/00009/06)
               and all its subsidiaries of which it is the sole or majority
               shareholder;

1.1.15.        "Net1" means Net1 Products (Proprietary) Limited (Registration
               No. 89/05779/07);
<PAGE>
                                                                               3

1.1.16.        "Patents Act" means the Patents Act 57 of 1978, as amended;

1.1.17.        "patent" means Patent No. 90/7106 together with all patents of
               addition, if any, granted to Net1 prior to the effective date in
               respect of additions to, improvements in and/or modifications of
               the UEPS;

1.1.18.        "patentable improvement" means any existing or future addition
               to, improvement in and/or modification of the UEPS in respect of
               which the patentee is granted or, upon application under the
               Patents Act, would probably be granted, a patent of addition or
               an independent patent;

1.1.19.        "patentee" means the patentee from time to time in respect of the
               patent including persons to whom the patent is assigned;

1.1.20.        "POS devices" means Point of Sale devices which will be utilised
               by retail outlets to, allow customers to transact the purchase
               and sale of goods or services at such outlets by means of the use
               of smart cards;

1.1.21.        "smart card" means the customer card which when utilised in
               conjunction with the copyrighted works and the terminals will
               allow the customer access to the UEPS;

1.1.22.        "Standard" means Standard Bank of South Africa Limited together
               with all its wholly-owned subsidiaries;

1.1.23.        "subsidiary" means, save where the term is otherwise restricted
               in terms of this agreement, a subsidiary as defined in section
               1(3) of the Companies Act, 1973;

1.1.24.        "system documentation" means-

1.1.24.1.           the set of documents, printout specifications, file
                    specifications and all manuals which collectively contain a
                    complete description and definition of all operating
                    conditions of the copyrighted works;

1.1.24.2.           all source code listings of the copyrighted works (including
                    the most current) being, or to be, used by Nedcor, in the
                    language in which they are written and in such detail as to
                    enable Nedcor to operate, maintain and modify the
                    copyrighted works;

1.1.24.3.           operating manuals and user guides;

1.1.25.        "terminals" means FTMs, POS devices and all other terminal
               devices (if any) which when utilised in conjunction with smart
               cards will enable customers to utilise the UEPS and carry out
               certain transactions thereon;
<PAGE>
                                                                               4

1.1.26.        "territory" means the Republic of South Africa (as constituted on
               31 May 1961), Namibia, Botswana, Lesotho, Swaziland, Mozambique
               and Zimbabwe;

1.1.27.        "the/this agreement" means this agreement together with all
               schedules and appendices hereto;

1.1.28.        "UEPS" means the Universal Electronic Payment System designed by
               Net1, as described and detailed in the complete specification to
               Net1's application for Patent No. 90/7106, together with all
               patentable improvements as at the effective date, and including
               functions listed in Appendix 1 hereto.

1.2.      The clause headings in this agreement have been inserted for
          convenience only and shall not be taken into account in its
          interpretation.

1.3.      This agreement shall be governed by and construed and interpreted in
          accordance with the laws of the Republic of South Africa.

2.  INTRODUCTION

2.1.      The parties record that:

2.1.1.         on and with effect from the effective date and subject to the
               terms and conditions set out in this agreement, Net 1 granted to
               Nedcor and Nedcor accepted, a non-exclusive licence under the
               patent to use the UEPS and all patentable improvements, if any,
               effected prior to the effective date, within the territory for
               the full term of the patent;

2.1.2.         with effect from the assignment date, Net 1 assigned the patent
               to SCP Belamant and AP Mansvelt who in turn assigned the patent
               to Holdings, in both instances subject to the licence (still to
               be recorded in the patent register) and the terms and conditions
               upon which the licence was granted to Nedcor, as set out in this
               agreement.

2.2.      Pursuant to the assignments of the patent as recorded in 2.1.2 above,
          Net1 shall forthwith after signature hereof enter into a written
          agreement with Nedcor, SCP Belamant, AP Mansvelt and Holdings in terms
          of which inter alia:

2.2.1.         with effect from the assignment date, Net1 shall cede and assign
               to SCP Belamant and AP Mansvelt all its rights and obligations in
               terms of and pursuant to this agreement and SCP Belamant and AP
               Mansvelt shall cede and assign all such rights and obligations to
               Holdings; and

2.2.2.         Net1 shall warrant unto and in favour of Nedcor, that SCP
               Belamant, AP Mansvelt and Holdings have at all times since the
               assignment date complied fully with the terms of this agreement
               and will continue to do so for the full term of the patent.
<PAGE>
                                                                               5

3.   NEDCOR LICENCE

3.1.      Net 1, with the assistance of Nedcor to the extent necessary, shall
          procure that the licence is recorded in the patent register as soon as
          possible after signature hereof and Nedcor will bear the legal costs
          of such recordal. Save for these legal costs (estimated at R1000,00),
          no consideration whatsoever is or shall become payable by Nedcor for
          either the licence or its use of the UEPS pursuant to the licence.

3.2.      Net1 declares and warrants unto and in favour of Nedcor that-

3.2.1.         as at the effective date and up to the assignment date, Net1 was
               the sole patentee of the patent, including all patents of
               addition (if any) granted in respect of patentable improvements,
               that the patent was of full force and effect and that Net1 was
               entitled to grant a licence under the patent to Nedcor to use the
               UEPS within the territory;

3.2.2.         save for the licence granted to Nedcor on the effective date and
               the licence granted to Megalink (Proprietary) Limited prior to
               the effective date, which latter licence Net1 warrants shall be
               terminated as soon as Megalink (Proprietary) Limited requests
               such termination -

3.2.2.1.            Net1 to the best of its knowledge but subject to any
                    agreement(s) or arrangement(s) that may have been concluded
                    on or after the effective date between Nedcor and any one or
                    more of ABSA, FNB and Standard, has not granted to any bank
                    any licence or any option or any other right to acquire any
                    licence under the patent or any other rights whatsoever, to
                    use the UEPS within the territory;

3.2.2.2.            none of SCP Belamant, AP Mansvelt and Holdings have granted
                    to any bank any licence or any option or any other right to
                    acquire any licence under the patent or any other rights
                    whatsoever, to use the UEPS within the territory;

3.2.3.         save for the assignment of the patent to SCP Belamant and AP
               Mansvelt and the subsequent assignment to Holdings (both of which
               assignments were expressly subject to the licence and the terms
               and conditions upon which the licence was granted, as set out in
               this agreement), none of Net1, SCP Belamant, AP Mansvelt and
               Holdings have granted any option or any other right to any third
               party to acquire all or any of the right, title and interest in
               and to the patent, or any part thereof;

3.2.4.         the patent and all rights thereunder are of full force and effect
               and Net1 shall use all reasonable endeavours to ensure that the
               patent and all rights under the patent will remain of full force
               and effect for the full term of the patent;

3.2.5.         Net1 shall, as and when requested by Nedcor, join Nedcor in
               defending any claim by any third party that the UEPS or Nedcor's
               use thereof,
<PAGE>
                                                                               6

               infringes any patent, copyright or other intellectual property
               right(s) of such third party.

4.   IMPROVEMENTS ETC

4.1.      Net1 shall promptly disclose to Nedcor, prior to any disclosure
          thereof to any other person, full details of all improvements,
          additions, enhancements, adaptations and modifications to the UEPS
          from time to time (hereinafter collectively referred to as
          "improvements"), whether patentable or otherwise, and, subject to the
          parties agreeing terms, Nedcor shall be entitled to use such
          improvements in conjunction with the UEPS within the territory. Net1
          shall render reasonable assistance to Nedcor in understanding,
          evaluating and implementing any such improvements, free of charge.

4.2.

4.2.1.         Should Net1 and Nedcor not agree terms for Nedcor's use of any
               improvements in accordance with 4.1 above, Net1 shall not
               thereafter agree terms with any other person in respect of any
               one or more of such improvements, without first offering such
               improvements to Nedcor in writing upon the same terms that Net1
               would be willing to agree with such other person and disclosing
               to Nedcor the identity of such person.

4.2.2.         Should any offer by Net 1 to Nedcor in terms of 4.2.1 above not
               be accepted in full and in writing within 14 (fourteen) days
               after receipt thereof, the offer will be deemed to have been
               declined and, subject to 5.5 below, Net1 may then offer such
               improvements in writing to such other person as referred to in
               4.2.1 above upon the same terms as those offered by Net 1 to
               Nedcor.

4.2.3.         Should an offer by Net 1 pursuant to 4.2.2 above not be accepted
               in full and in writing within 14 (fourteen) days after the expiry
               of the 14 (fourteen) day period referred to in 4.2.2 above, such
               offer shall be deemed to have expired and Net1 shall not
               thereafter agree terms with any person in respect of the
               improvements without again following the procedure set out in
               this clause 4.

4.3.      If Net1 is granted an independent patent in respect of any improvement
          on which the parties agreed terms in accordance with 4.1 above, it
          shall forthwith grant to Nedcor a non-exclusive licence to use such
          improvement in conjunction with the UEPS within the territory in
          accordance with the agreed terms and otherwise mutatis mutandis upon
          the terms and conditions set out in this agreement.

5. BANK LICENCES

5.1.      Net1 shall not-
<PAGE>
                                                                               7

5.1.1.         grant any licence or other rights under the patent to any bank or
               any subsidiary of any bank, unless nominated in writing by
               Nedcor, nor in any manner whatsoever, whether directly or
               indirectly and whether by way of any act or omission on its part,
               permit or enable any licensee under the patent, including any
               licensed bank or any licensed subsidiary of any bank, to do so;

5.1.2.         offer or supply to any bank or any subsidiary of any bank any
               system(s) that would compete with or replace the UEPS, without
               the prior written consent of Nedcor.

5.2.      If and when requested by Nedcor in writing, Net1 shall grant to each
          of ABSA, FNB and Standard and to each other bank nominated by Nedcor,
          a non-exclusive licence under the patent to use the UEPS within the
          territory for the full term of the patent.

5.3.      Unless Nedcor otherwise notifies Net1 in writing-

5.3.1.         no consideration whatsoever, other than the legal costs of
               recording each licence in the patent register, shall be payable
               by ABSA, FNB or Standard for either its licence pursuant to any
               request by Nedcor to Net1 in accordance with 5.2 above or the use
               of the UEPS pursuant to the licence;

5.3.2.         save for the terms (if any) upon which ABSA, FNB and Standard
               would be entitled to use patentable improvements, which terms
               will be subject to 5.5 below and otherwise as agreed by each of
               them with Net1, the terms of the licences granted to any or all
               of ABSA, FNB and Standard shall be the same as those applicable
               to Nedcor under its licence.

5.4.      Subject to 5.5 below, licences granted to banks other than ABSA, FNB
          and Standard shall be on such terms as may be agreed by Net1 and the
          bank concerned, provided that no such bank shall be granted a licence
          upon terms more favourable than those applicable to Nedcor under its
          licence.

5.5.      Save with Nedcor's prior written consent, Net1 shall neither-

5.5.1.         permit any bank to use any patentable improvement in conjunction
               with the UEPS, nor

5.5.2.         utilise its expertise and experience in respect of the UEPS for
               the benefit of any bank to the exclusion of Nedcor, provided that
               Nedcor shall not unreasonably withhold its consent to such
               utilisation.

6. FURTHER LICENCES

6.1.      Subject to the restrictions imposed on it in terms of this agreement,
          Net1 shall be entitled to grant licences under the patent to
          whomsoever it wishes.
<PAGE>
                                                                               8

6.2.      Net1 shall, within 10 (ten) days after granting any licence under the
          patent, notify Nedcor in writing of the identity of the licensee.

7. INFRINGEMENTS AND BREACH OF LICENCES

7.1.      Should any bank infringe the patent or should any licensed bank or
          licensed subsidiary of any bank, breach the terms of its licence under
          the patent in any respect other than non-payment of any consideration
          due to Net1, Nedcor shall be entitled at its cost and in its name, if
          permissible under the Patents Act, otherwise in the name of Net1, to
          take whatever action it deems appropriate in respect of such
          infringement or breach, including court proceedings, and Net1 shall
          cooperate fully with Nedcor in whatever action it takes. Without
          limiting the generality thereof, such cooperation shall include Net1-

7.1.1.         notifying Nedcor of any such infringement or breach and the
               details thereof;

7.1.2.         furnishing Nedcor with all necessary powers of attorney and
               resolutions to pursue whatever action it takes; and

7.1.3.         affording Nedcor full access to all relevant records and
               documents for the purpose of whatever action it takes.

7.2.      Nedcor hereby indemnifies Net1 against any liability for costs which
          may be incurred in pursuance of the provisions of 7.1 above.

7.3.      Save with the prior written consent of Nedcor, Net1 shall not take any
          action whatsoever against any licensed bank or licensed subsidiary of
          any bank, that breaches its licence under the patent, unless such
          breach is in respect of non-payment of any consideration due to Net1.

7.4.      Should any entity, including any bank, infringe the patent, Net1 shall
          be entitled at its cost to take whatever action it deems appropriate
          in respect of such infringement, including court proceedings, and,
          save in respect of any bank in accordance with 7.1 above, Nedcor shall
          not be entitled to take any action whatsoever in respect of any such
          infringement without the prior written consent of Net 1.

8. SMART CARDS

   Nothing in this agreement shall preclude Net1 from marketing and
   supplying smart cards and terminals to licensed banks or to their
   subsidiaries that are licensed under the patent to use the UEPS. In
   this regard, Net1 records that it is its intention to levy-

8.1.      all licensees nominated by Nedcor, other than ABSA, FNB and Standard
          unless otherwise advised by Nedcor in writing; and

8.2.      all licensees nominated by ABSA, FNB and Standard;
<PAGE>
                                                                               9

      with a charge equal to 3,5% (three comma five percent) of the purchase
      price of each and every smart card purchased by them from suppliers other
      than Net1.

9.    MARKETING

9.1.  Net1 acknowledges that Nedcor has made the UEPS available to the South
      African Breweries Group ("SAB") and intends making it available to PayNet,
      the medical care industry and buying associations (hereinafter
      collectively referred to as "the potential UEPS users"), and that, with
      Nedcor's participation, SAB is currently using the UEPS in its business
      and, it is anticipated, will continue to do so in the future.

9.2.  Net1 undertakes unto and in favour of Nedcor that it will not in any
      manner whatsoever compete with Nedcor in the marketing and supply of UEPS
      products and services related thereto, to SAB and the potential UEPS
      users, nor will Net1 offer or supply to any of SAB and the potential UEPS
      users any alternative systems that would compete with or replace the UEPS.
      The aforegoing shall not however preclude Net1 from marketing and
      supplying smart cards, terminals and other computer hardware to SAB and
      the potential UEPS users.

9.3.  Whenever Net1 markets any system that will require the participation of a
      bank, eg. any system that provides for or permits settlement through a
      bank, Net1 shall offer such participation to Nedcor to the exclusion of
      all other banks, and provided that Nedcor wishes to accept appointment as
      the participating bank and its proposed response times and pricing in
      respect of such participation are competitive with those of the other
      major banks in South Africa, Net1 shall procure that Nedcor is appointed
      as the participating bank in respect of the system.

9.4.  Should Nedcor fail to respond to any offer of participation in respect of
      any system within a reasonable time after receipt of the offer, the offer
      shall lapse and Net1 shall be entitled to offer the participation to any
      other licensed bank.

10.   COPYRIGHT

10.1. With effect from the effective date-
<PAGE>
                                                                              10

10.1.1.   Nedcor hereby assigns, transfers and makes over to Net1, which hereby
          accepts, a 50% (fifty percent) share of the undivided complete
          copyright in the copyrighted products within the territory; and

10.1.2.   Net1 hereby assigns, transfers and makes over to  Nedcor, which hereby
          accepts, a 50% (fifty percent) share of the undivided complete
          copyright in the copyrighted products in all countries of the world
          outside the territory;

       so that, as from the effective date, Nedcor and Net1 shall jointly own
       the complete copyright in the copyrighted products in equal undivided
       shares in all countries of the world.

10.2.  Pursuant to 10.1 above and subject to the restrictions stated in this
       agreement, each of Nedcor and Net1 shall be entitled, at its own cost and
       without recourse to the other of them in respect of any such costs, and
       upon such terms and conditions as each of them deems fit and without
       reference to the other of them-

10.2.1.   to reproduce the copyrighted products, or any part thereof, in any
          manner or form;

10.2.2.   to market, sell and generally exploit the copyrighted products, or any
          part thereof, anywhere in the world as if it was the sole owner
          thereof, subject however to the express reservation of their joint
          copyright therein and provided that neither of them shall grant any
          exclusive rights whatsoever to any third party in respect of the
          copyrighted products, or any part thereof;

10.2.3.   to grant non-exclusive licenses to third parties to use the
          copyrighted products, or any part thereof, anywhere in the world;

10.2.4.   to register (insofar as it is capable of registration) their joint
          ownership of the copyright in the copyrighted products anywhere in the
          world, provided that neither of them shall effect any such
          registration in any manner which adversely affects or otherwise
          detracts from their joint ownership of the copyright therein;
<PAGE>
                                                                              11

10.2.5.        to effect improvements, modifications, adaptations, enhancements
               and additions to the copyrighted products; and

10.2.6.        to exercise and enforce all rights and claims against third
               parties arising out of any infringements of the copyright in the
               copyrighted products as though it were the sole owner of the
               copyright. For this purpose, each of Nedcor and Net1 shall be
               entitled to exercise and enforce all such rights and claims in
               its own name and, where necessary, in the name of the other,
               provided that notwithstanding anything to the contrary herein
               contained, each of Nedcor and Net1 hereby indemnifies the other
               against all and any costs (including attorney and client costs)
               which may be incurred by or awarded against the other as a
               consequence of the exercise and enforcement of such rights. If
               either party sues in the name of the other, the other party shall
               be entitled to require the party suing in its name to give
               reasonable security for the payment of such costs prior to it
               taking any steps to exercise and enforce such rights and claims.
               Each of Nedcor and Net1 shall render reasonable assistance to the
               other to enable it to exercise its rights and enforce the claims
               contemplated by this clause 10.2.6.

10.3.     Save with the prior written consent of the other of them, which
          consent shall not be unreasonably withheld, neither Nedcor nor Net1
          shall be entitled to assign its share of the copyright in the
          copyrighted products, or any portion of its share, to any third party
          or, save as provided in 10.2 above, to otherwise exploit or deal with
          the copyrighted products, or the rights of copyright therein, in any
          manner whatsoever.

10.4.     Notwithstanding that the copyright in the copyrighted products will be
          jointly owned by Nedcor and Net1, each of them shall be entitled to
          retain as its sole and absolute property, all income and other monies
          derived by it from the exercise of its rights in terms of 10.2 above.

10.5.     Each of Nedcor and Net1 hereby warrants unto and in favour of the
          other of them, that it has not prior to the signature hereof-

10.5.1.        assigned or purported to assign the copyright in the copyrighted
               products, or any share thereof, to any third party, or

10.5.2.        granted or purported to grant any exclusive rights in respect of
               the copyrighted products, or the rights of copyright therein, to
               any third party.

10.6.     Nedcor and Net1 each hereby indemnifies the other of them against any
          claims resulting from or arising out of the exercise of their
          respective rights in terms of this clause 10. and their respective
          dealings with the copyrighted products and the copyright therein,
          including, without limiting the generality of the aforegoing-
<PAGE>
                                                                              12

10.6.1.        claims for infringement of any third party's intellectual
               property rights, including copyright; and

10.6.2.        claims for consequential or incidental damages.

10.7.     Should either Nedcor or Net1 (hereinafter referred to as "the
          defaulting party") breach any term or condition of 10.3 above in any
          manner whatsoever, such breach will be deemed to be an infringement of
          the other party's rights of copyright in the copyrighted products,
          and, without prejudice to whatever other rights and remedies it may
          have against the defaulting party in terms of this agreement and in
          law, such other party shall be entitled to exercise and enforce
          against the defaulting party all its rights and claims arising out of
          or resulting from such infringement, as if such other party were the
          sole owner of the copyright in the copyrighted products and the
          defaulting party had no rights of copyright therein.

11. CONFIDENTIAL INFORMATION

11.1.     Neither party shall at any time divulge or disclose to any third party
          any information concerning the affairs of the other party which may be
          communicated to it or which otherwise comes into its possession,
          unless such information becomes publicly available through no fault of
          such party.

11.2.     Neither party shall use, exploit or divulge or disclose to any third
          party any business systems or methods, proprietary systems or
          application programs of the other party of which it may gain knowledge
          while working with the other party or in the course of performing its
          obligations in terms of this agreement, except with the prior written
          consent of the other party.

11.3.     This clause is severable from the rest of this agreement and shall
          remain valid and binding on the parties notwithstanding any
          termination of this agreement.

12. BREACH

12.1.     Should Net1 at any time in contravention of 5.1 above, grant any
          licence or other rights under the patent to any bank or any subsidiary
          of any bank or should any licensee under the patent do so pursuant to
          any failure of Net1 to comply with its obligations in terms of 5.1.1
          above, then and in such event and without prejudice to whatever other
          claims Nedcor may have against Net1 as a result of or arising out of
          any such breach, including any claim for damages, Net1 shall, on
          written demand from Nedcor and free of any consideration, cede and
          assign to Nedcor in writing all its right, title and interest in and
          to-

12.1.1.        each and every agreement in terms of which Net1 has granted any
               licence(s) and/or other rights under the patent to any bank or
               any subsidiary of any bank; and
<PAGE>
                                                                              13

12.1.2.        all claims that Net1 may have from time to time should any
               licensed bank(s) acquire smart cards from persons other than
               Net1;

    and deliver to Nedcor all the agreements referred to in 12.1, above
    and Net1 shall not thereafter grant or attempt to grant any licence or
    other rights under the patent to any bank or any subsidiary of any
    bank, save with the written consent of Nedcor which consent may be
    withheld by Nedcor in its absolute discretion.

12.2.     Subject to the provisions of 12.1 above, should either party breach
          any term of this agreement and fail to remedy such breach within 30
          (thirty) days, or such longer period as may be reasonable in the
          circumstances, of receipt of written notice calling upon it to do so,
          the other party shall be entitled to recover from the party in breach
          such damages as it may suffer or to claim such other relief as it may
          in law be entitled to, as a result of or arising out of any such
          breach, provided that neither party shall be entitled to terminate or
          cancel this agreement by reason of any breach thereof.

13. ARBITRATION

13.1.     Any dispute between the parties relating to any matter arising out of
          this agreement or the interpretation thereof, including any dispute as
          to the respective rights and obligations of the parties in terms of
          this agreement or arising out of any breach of this agreement, and the
          appropriate relief in the event of any breach of this agreement, shall
          be submitted to and decided by arbitration, and the arbitrator will be
          entitled to decide the dispute in accordance with what he considers to
          be just and equitable in the circumstances.

13.2.     Either party to this agreement may demand that a dispute be referred
          to arbitration by giving written notice to that effect to the other
          party.

13.3.     This clause shall not preclude either party from obtaining interim
          relief on an urgent basis from a court of competent jurisdiction
          pending the decision of the arbitrator.

13.4.     The arbitration referred to in 13.1 above shall be held -

13.4.1.        at Johannesburg;

13.4.2.        in a summary manner, i.e. on the basis that it shall not be
               necessary to observe or carry out either-

13.4.2.1.           the usual formalities or procedures (e.g. there shall not be
                    any pleadings or discovery); or

13.4.2.2.           the strict rules of evidence;

13.4.3.        immediately and with a view to its being completed within 21
               (twenty-one) days after it is demanded;
<PAGE>
                                                                              14

13.4.4.        otherwise (but subject to 13.5.1 and 13.5.2 below) under the
               provisions of the Arbitration Act No. 42 of 1965 (as amended from
               time to time).

13.5.     The arbitrator shall be, if the matter in dispute is-

13.5.1.        primarily an accounting matter, an independent accountant agreed
               upon by the parties, or, failing agreement within 14 (fourteen)
               days after delivery of the notice referred to in 13.2 above, an
               accountant selected and appointed by the President for the time
               being of the South African Institute of Chartered Accountants at
               the request of either party;

13.5.2.        any other matter, a practising advocate or attorney of
               Johannesburg of at least 15 (fifteen) years' standing, agreed
               upon by the parties, or, failing agreement within 14 (fourteen)
               days after delivery of the notice referred to in 13.2 above,
               selected and appointed by the Chairman for the time being of the
               Johannesburg Bar Council at the request of either party.

13.6.     Should the parties fail to agree whether the dispute is primarily an
          accounting matter or some other matter, within 7 (seven) days after
          delivery of the notice referred to in 13.2 above, the matter shall be
          deemed not to be primarily an accounting matter.

13.7.     The parties irrevocably agree that the decision in arbitration
          proceedings-

13.7.1.        shall be final and binding upon the parties;

13.7.2.        shall be carried into effect;

13.7.3.        may be made an order of any court of competent jurisdiction at
               the instance of either party to the dispute.

13.8.     This clause is severable from the rest of this agreement and shall
          remain valid and binding on the parties notwithstanding any
          termination of this agreement.

14.    DOMICILIUM AND NOTICES

14.1.     The parties hereby choose domicilium citandi et executandi for all
          purposes under this agreement at their respective addresses set out in
          the heading to this agreement.

14.2.     Either party may by written notice to the other, change its domicilium
          to any other physical address in the Republic of South Africa and its
          telefacsimile number as referred to in 14.3.3 below to any other South
          African number, provided that any such change shall only take effect
          14 (fourteen) days after delivery of such written notice.

14.3.     Any notice to be given by either party to the other shall be clearly
          marked for the attention of the Managing Director and shall be deemed
          to have been duly delivered-
<PAGE>
                                                                              15

14.3.1.        if addressed to the addressee at its chosen domicilium and posted
               by pre-paid registered post, on the seventh day after the date of
               posting thereof, or,

14.3.2.        if delivered to the addressee's chosen domicilium by hand during
               business hours on a business day, on the date of delivery
               thereof, or,

14.3.3.        if sent by telefacsimile to the addressee at its undermentioned
               telefacsimile number, on the first business day following the
               date of sending thereof

               Nedcor-telefacsimile (011) 881-4188
               Net1-telefacsimile (011) 880-7080

15.  WHOLE AGREEMENT

15.1.     This agreement constitutes the entire agreement between the parties in
          respect of the subject matter hereof and neither party shall be bound
          by any undertakings, representations, warranties or promises not
          recorded in this agreement.

15.2.     No alteration, variation or consensual cancellation of this agreement
          and no addition to this agreement shall be of any force or effect
          unless reduced to writing and signed by the parties or their duly
          authorised representatives.

16.  GENERAL

16.1.     No failure, delay, relaxation or indulgence on the part of either
          party in exercising any power or right conferred upon it in terms of
          this agreement shall operate as a waiver of such power or right nor
          shall any such failure, delay, relaxation or indulgence be deemed to
          be a novation of the terms or conditions of this agreement.

16.2.     Each party shall bear its own costs (including value-added tax) of and
          in connection with the negotiation, preparation and execution of this
          agreement.

16.3.     Neither this agreement nor any part thereof nor any share or interest
          therein, shall be assigned or ceded by either party without the prior
          written consent of the other.

16.4.     This agreement shall inure for the benefit of and be binding upon the
          successors in title and permitted assigns of the parties.

16.5.     Should any of the terms and conditions of this agreement be held to be
          invalid, unlawful or unenforceable, such terms and conditions will be
          severable from the remaining terms and conditions which will continue
          to be valid and enforceable. If any term or condition held to be
          invalid is capable of amendment to render it valid, the parties agree
          to negotiate an amendment to remove the invalidity.
<PAGE>
                                                                              16

SIGNED at
         -----------------------------------------------------------------------

on                                 19
  ---------------------------------  ---

WITNESSES:                         For and on behalf of
                                   NEDCOR BANK LIMITED

                                   --------------------------------------------
                                   who warrants that he is duly authorised

SIGNED at
         -----------------------------------------------------------------------

on                                 19
  ---------------------------------  ---

WITNESSES:                         For and on behalf of
                                   NET1 PRODUCTS (PTY) LIMITED

                                   --------------------------------------------
                                   who warrants that he is duly authorised<PAGE>
                                                                   Exhibit 10.19

Commercial-In-Confidence

                         PATENT AND TECHNOLOGY AGREEMENT

                      Made and entered into by and between:

                         NET 1 HOLDINGS S.a.r.l. (1929)

                                       and

                    NET 1 APPLIED TECHNOLOGY HOLDINGS LIMITED

                                       and

                               NEDCOR BANK LIMITED

<PAGE>

                                                                          Page 2

This Patent and Technology Agreement (the "Agreement"), effective as of _____
June 2000 (the "Effective Date"), is entered by and between:

1)   Nedcor Bank Limited located at 100 Main Street, Johannesburg 2000, Republic
     of South Africa;

2)   Net 1 Holdings S.a.r.l (1929) located at 6, rue Jean Monnet, L-2180
     Luxembourg;

3)   Net 1 Applied Technology Holdings Limited located at Fourth Floor North
     Wing, President Place, Cnr. Jan Smuts Avenue, Bolton Road, Rosebank,
     Johannesburg, Republic of South Africa.

The parties agree the following terms and conditions shall apply to the
licensing of certain patents and technology rights by Net 1.

1.    DEFINITIONS

     1.1. The Clause headings of this Agreement are for reference purposes only
          and shall not be used in the interpretation thereof.

     1.2. Unless the context clearly indicates a contrary intention:

          1.2.1. expressions which denote

                 1.2.1.1.  any gender shall include the other genders;

                 1.2.1.2.  a natural person shall include an artificial person
                           and vice versa;

                 1.2.1.3.  the singular shall include the plural;

          1.2.2. the following expressions shall have the following meanings

                 1.2.2.1.  "Licensee" shall mean any entity in whom Nedcor has
                           an equity interest of more than 5%;

                 1.2.2.2.  "Nedcor" shall mean Nedcor Bank Limited (Registration
                           No. 51/00009/06) and all of its subsidiaries,
                           affiliates and its holding company;

                 1.2.2.3.  "Net 1" shall mean Net 1 shall mean Net 1 S.a.r.l
                           (1929), a company incorporated in accordance with the
                           laws of Luxembourg and having its registered office
                           at 6, rue Jean Monnet, L-2180 Luxembourg, herein
                           represented by Brenda Stewart in her capacity as a
                           Director of the Company, she being duly authorised
                           hereto, and Net 1 Applied Technology Holdings
                           Limited;

                 1.2.2.4.  "Parties" shall mean the parties to this Agreement;
<PAGE>

                                                                          Page 3

                 1.2.2.5.  "Patents" shall mean United States No. 5,175,416 and
                           European Patents No. 0-421808 together with all
                           patents of addition, if any, granted to Net 1;

                 1.2.2.6.  "Smart Card" shall mean the customer card which when
                           utilised in conjunction with any point of sale
                           terminals will allow the customer to access the UEPS;

                 1.2.2.7.  "Territory" shall mean any country of the world,
                           except the Republic of South Africa (as constituted
                           on 31 May 1961), Namibia, Botswana, Lesotho,
                           Swaziland, Mozambique and Zimbabwe;

                 1.2.2.8.  "UEPS" means the Universal Electronic Payment System
                           designed by Net 1, as described and detailed in the
                           complete specification to Net 1's application for the
                           Patents;

2.   PREAMBLE

     2.1. Nedcor and Net I entered into an agreement dated 29 July 1997, (the
          "Original Agreement") whereby Net 1 granted Nedcor a license to use
          the Patents within the Republic of South Africa (as constituted on 31
          May 1961), Namibia, Botswana, Lesotho, Swaziland, Mozambique and
          Zimbabwe and whereby Net 1 agreed not to grant any rights under or
          relating to the Patents to any bank or subsidiary of a bank without
          Nedcor's prior written consent.

     2.2. The Parties have reached agreement as to the terms and conditions upon
          which Nedcor may call upon Net 1 to grant a non-exclusive licence
          within the Territory to a Licensee to use the Patents and the UEPS
          technology.

3.   DURATION

This Agreement shall commence on the Effective Date and shall endure for the
life of the Patents and any extensions thereto, unless terminated earlier as
provided for hereunder.

4.   GRANT OF RIGHTS

     4.1. This Agreement supplements the Original Agreement which shall remain
          in full force and effect.

     4.2  As of the Effective Date, world-wide title and intellectual property
          rights in all software relating to the operation of the UEPS
          (including the Megalink System) and any related user manuals and
          documentation is jointly owned by Nedcor and Net 1.

     4.3  Nedcor shall be entitled in writing to request and Net 1 agrees to
          grant a non-exclusive licence to any Licensee to use the Patents and
          all technology and know-how relating to the UEPS in the Territory.
<PAGE>

                                                                          Page 4

     4.4. Net 1 shall within 30 (thirty) days of receipt by it of the request
          pursuant to Clause 4.3, conclude a written licence Agreement with the
          Licensee upon the following terms:

          4.4.1. Net 1 shall provide all necessary documentation and know-how to
                 the Licensee in order for the Licensee to be able to use the
                 Patents and the UEPS;

          4.4.2  the Licensee shall pay an annual licence fee to Net 1 in the
                 sum of US $ 100,000 (One hundred thousand United States
                 dollars) per country, which licence fee shall be paid annually
                 in advance following the commencement date of the licence
                 agreement. The licence fee may be increased annually after the
                 expiry of the first year of the licence agreement by agreement,
                 or failing which, by an amount not to exceed the percentage
                 increase of the US Consumer Price index during the preceding 12
                 (twelve) months;

          4.4.3. the Licensee shall grant Net 1 the right to quote for the
                 supply of all of the Licensee's Smart Card requirements
                 provided that Net 1 undertakes to use its best efforts to
                 provide the Licensee with competitive prices for such Smart
                 Cards;

          4.4.4. If the Licensee elects not to purchase Smart Cards from Net 1,
                 and provided that Net l's prices were no less competitive than
                 other third party suppliers, the Licensee shall pay to Net 1,
                 an amount equivalent to 3.5% (three point five percent) of the
                 purchase cost to it of such Smart Cards from a third party
                 supplier, and which amount shall be paid to Net 1 quarterly in
                 arrears;

          4.4.5. Nedcor agrees that neither it nor any Licensee will use the
                 trade marks or brand names Master Card, Europay, Amex,
                 Discover, Diners, Carte Blanche or JCB in connection with the
                 Patents or the UEPS;

          4.4.6. the Licensee shall advise any third party supplier of its said
                 hardware requirements that such third party supplier may be
                 required to procure a licence from Net 1 in respect of the
                 supply of such hardware to the extent that the configuration of
                 such hardware might in itself infringe the Patent.

5.   MAINTENANCE OF THE PATENTS

     5.1. Net 1 shall during the life of this Agreement pay all renewal fees and
          do all such acts and things that may be necessary to maintain and keep
          registered the Patents and shall produce to Nedcor the receipt for
          renewing the Patents and in default shall permit Nedcor to pay the
          same and shall credit the Licensee with the cost of such renewal
          against the licence fees.
<PAGE>

                                                                          Page 5

     5.2. Net 1 shall not during the life of this Agreement, save with the prior
          written consent of Nedcor, abandon the Patents or allow it to lapse,
          nor will it amend the specification of the Patents without first
          notifying Nedcor of its intention to do so.

6.   PATENTS INFRINGEMENT

     6.1. Upon the occurrence of any infringement or suspected or threatened
          infringement of the Patents, the Parties shall immediately consult to
          decide what steps shall be taken to prevent or terminate such
          infringement.

     6.2. Net 1 shall take all steps as may be agreed by the Parties pursuant to
          Clause 6.1 above including the institution of legal proceedings where
          necessary.

     6.3. If Net 1 fails to take such steps as may be considered necessary or
          appropriate by Nedcor, Nedcor shall have the right and is hereby
          authorised by Net 1 to take those steps independently. In taking such
          steps Nedcor shall not be acting as the agent or in any way on behalf
          of Net 1 but Net 1 shall give all reasonable assistance to facilitate
          any such proceedings by Nedcor. Any costs and expenses incurred by
          Nedcor shall be borne by Net 1 and credited to the Licensee against
          any licence fees.

7.   IMPROVEMENTS

     7.1. If Net 1 at any time files an application for any improvement to the
          Patents, Net 1 shall provide to Nedcor and the Licensee such
          information and explanations as Nedcor shall reasonably require to be
          able effectively to utilise such improvements. Net 1 shall grant an
          irrevocable, non-exclusive, royalty-free license to the Licensee for
          the use of such improvement throughout the Territory.

8.   WARRANTIES AND INDEMNITIES

     8.1. Net 1 agrees that Nedcor entered into this Agreement in reliance upon
          Net l's warranties. Accordingly, Net 1 warrants that;

          8.1.1. it is the sole owner of the Patents and the UEPS technology;

          8.1.2. it holds the Patents free of any security interests or
                 encumbrances;

          8.1.3. it is able to enter auto this Agreement and to grant any
                 Patents license to the Licensee;

          8.1.4. there has been no claim that the Patents or any part of UEPS
                 technology infringe the rights of any third party anywhere in
                 the world and that Net 1 is unaware of any pending claims or
                 actions against the Patents or the UEPs technology.

     8.2. Net 1 agrees to indemnify and hold harmless Nedcor and any Licensee
          from any arid all losses, liabilities, damages, claims and all related
          costs and expenses

<PAGE>

                                                                          Page 6

          (including all legal fees and disbursements) relating to a claim that
          the Patents infringes the intellectual property rights of a third
          party or that the use of the UEPS technology in any way infringes any
          third party rights. The indemnity in this Clause 8.2 shall be
          unlimited and shall cover all losses, costs, damage and expenses of
          Nedcor and any Licensee howsoever arising and to the fullest extent
          permitted by law.

     8.3. If the Patents become or is likely to become the subject to an
          infringement claim, Net 1 shall, in addition to indemnifying Nedcor as
          provided in Clause 8.2 above, promptly at Net 1's expense use its best
          efforts to secure the right to continue using the Patents or replace
          or modify the Patents to make it non-infringing, provided that any
          such replacement or modification will not degrade the performance or
          quality of the Patents. If Net 1 is unable to make the Patents
          non-infringing, then Nedcor may terminate this Agreement without
          liability and without prejudice to any claims against Net 1 which
          Nedcor or the Licensee may have, and Net 1 shall refund any licence
          fees paid by the Licensee.

9.   BREACH

Should either party commit a breach of any of the warranties and terms of this
Agreement, all of which are material and go to the root of this Agreement, and
fail to remedy such breach within a period of thirty (30) days of the date of a
written notice from the aggrieved party calling upon the defaulting party to
remedy such breach, then the aggrieved party shall have the right in addition to
such other rights as are available to it in law or in terms of this Agreement to
terminate this Agreement and claim damages, and in the case of Nedcor to
terminate any other agreement it has with Net 1.

10.  CONFIDENTIALITY

No Party shall any time divulge or disclose to any third party any information
concerning the affairs of the other Parties or the existence of this Agreement
without the prior written consent of the other Parties.

11.  WHOLE AGREEMENT

This Agreement constitutes the sole and exclusive record of the Agreement
between the Parties relating to the subject matters thereof, and no variation,
modification, consensual cancellation, novation or waiver of any provisions
thereof, or any consent to any departure therefrom by any party, shall be of any
force and effect or create any estoppel unless the same shall be confirmed in
writing, signed by or on behalf of that Party and any other Party affected
thereby and in any event the same shall be effective only in the specific
instance and for the specific purpose and to the extent for which made or given.

12.  SURVIVAL

The provisions of Clauses 8 and 10 shall survive termination of this Agreement.
<PAGE>

                                                                          Page 7

13.  DOMICILIA

For all purposes under this Agreement or any amendment thereof, or with regard
to any matter arising thereout or in connection therewith, the Parties hereby
choose their domicilia citandi et executandi at their respective addresses
specified below provided that the Parties shall be entitled to nominate a
substitute address in the Republic of South Africa, as their domicilia citandi
et executandi, by written notice to that effect given to the other Party in
accordance with Clause 14 and with effect from 7 (seven) days after receipt of
such notice:

     13.1. Net 1 at 6, rue Jean Monnet, L-2180 Luxembourg;

     13.2. Nedcor at 105 West Street, Sandton.

14.  NOTICES

Any notice required to be given or permitted to be given by any Party to the
other in terms of this Agreement shall be in writing addressed in the name of
the latter and shall be delivered to the addressee at the addressee's domicilia
citandi et executandi for the time being in terms of Clause 13 supra.
Alternatively, such notice may be sent by telefacsimile to the addressee at its
undermentioned telefacsimile number, and such notice shall be deemed to have
been duly delivered on the first business day following the date of sending
thereof:

     Nedcor -  (011) 881-4811
     Net 1  -  (011) 880-7080

15.  LAW TO APPLY

This Agreement shall in all respects be governed by and construed in accordance
with the laws of the Republic of South Africa, and all disputes, actions and
other matters in connection therewith shall be determined in accordance with
such law.

16.  INDULGENCE

No relaxation or indulgence granted by either Party to the other shall be deemed
to be a waiver of that Party's rights in terms hereof, nor shall any such
relaxation or indulgence be deemed to be a novation or waiver of any of the
terms and conditions of this Agreement.

17.  ARBITRATION

     17.1. Unless otherwise provided for in this Agreement to the contrary, any
           dispute which arises in regard to:

           17.1.1. the interpretation of; or

           17.1.2. the carrying into effect of; or

           17.1.3. any of the Party's rights and obligations arising from; or

           17.1.4. the rectification or proposed rectification of this Agreement

<PAGE>

                                                                          Page 8

                    may, at the instance of either Party hereto, be referred for
                    determination by an expert, and in relation to that referral
                    the provisions of this Clause 14 shall apply.

     17.2. The expert shall:

            17.2.1. if the matter in issue is an accounting matter, be an
                    independent auditor agreed upon between the Parties or
                    failing agreement, appointed by the President for the time
                    being of the Transvaal Society of Chartered Accountants;

            17.2.2. if the matter is a legal matter, only, be a Counsel of at
                    least 10 (ten) years' standing as such practising as such at
                    the Johannesburg Bar, agreed upon between the Parties to the
                    dispute or failing agreement, appointed by the Chairman for
                    the time being of the Johannesburg Bar Council;

            17.2.3. if the matter in dispute is any other matter, be an
                    independent person agreed upon between the Parties to the
                    dispute or failing agreement, appointed by the President for
                    the time being of the Law Society of the Transvaal;

     17.3.  The expert appointed or nominated as aforesaid shall in all respects
            act as an expert and not as an arbitrator, and if the Parties are
            unable to agree on the nature of the matter in dispute, it shall be
            deemed to be of a legal nature and subject to Clause 17.2.2 supra.

     17.4.  The expert shall determine the manner in which the proceedings are
            conducted and the procedure to be adopted and he shall be entitled
            to require the Parties to the proceedings to make available to each
            other and to the expert all information, documentation and records
            that are necessary for the determination of the dispute submitted to
            him.

     17.5.  Any hearing by the expert shall be held in Johannesburg or such
            other place as the Parties may agree in writing.

     17.6.  The Parties shall use their best endeavours to procure that the
            decision of the expert shall be given within 21 (twenty-one) days or
            so soon thereafter as possible after it has been demanded.

     17.7.  The decision of the expert shall be final and binding on all parties
            affected thereby and shall be carried into effect and may be made an
            order of any competent Court at the instance of any of the Parties.

     17.8.  This clause constitutes an irrevocable consent by the Parties to any
            proceedings in terms hereof and neither of the Parties shall be
            entitled to withdraw therefrom or claim at any such proceedings that
            it is not bound by the provisions of this clause.

<PAGE>

                                                                          Page 9

     17.9.  The expert shall determine the liability for his costs which shall
            be paid in accordance with his determination.

     17.10. Notwithstanding the provisions of Clause 14.8 supra either party may
            choose to launch proceedings by way of Court action or application,
            save in regard to any matter already referred by either Party in
            terms of this paragraph 11.

18.  SEVERABILITY

Should any of the terms and conditions of this, Agreement be held to be invalid,
unlawful or unenforceable, such terms and conditions shall be severable from the
remaining terms and conditions which will continue to be valid and enforceable.
If any term or condition held to be invalid is capable of amendment to render it
valid, the Parties agree to negotiate in good faith an amendment to remove such
invalidity.
<PAGE>

DATED AT JOHANNESBURG ON THIS THE _____ DAY OF JUNE 2000.

AS WITNESSES:
-------------

1
                                 -----------------------------------------------
                                                           For and on behalf of:

                                                   Net 1 Holdings S.a.r.l (1929)

2

AS WITNESSES:
-------------

1

                                 -----------------------------------------------
                                                           For and on behalf of:

                                       Net 1 Applied Technology Holdings Limited

2

AS WITNESSES:
-------------

1

                                 -----------------------------------------------
                                                           For and on behalf of:

                                                             Nedcor Bank Limited

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]