Document:

Net 1 UEPS Technologies, Inc.: Exhibit 10.1 - Filed by newsfilecorp.com

    

    Exhibit 10.1

    AMENDMENT NO. 1 

    TO 

    COOPERATION AGREEMENT

    This Amendment No. 1 (this "Amendment") to Cooperation Agreement dated as of December 9, 2020, is by and between Net 1 UEPS Technologies, Inc., a Florida corporation (the "Company"), and Value Capital Partners (Pty) Ltd. (Registration number 2016/242305/07), a South African private company ("VCP," and together with the Company, the "Parties," and each, a "Party").

    RECITALS

    WHEREAS, the Parties have entered into a Cooperation Agreement dated as of May 13, 2020 (as heretofore amended, amended and restated, supplemented or otherwise modified from time to time in accordance with its provisions, the "Agreement"); and

    WHEREAS, the Parties hereto desire to amend the Agreement to (i) increase the maximum aggregate beneficial ownership interest VCP is permitted to hold in the Company; (ii) extend and modify the existing Standstill Period and Initial Restriction Period (each as defined in the Agreement), and certain other terms and conditions related thereto; and (iii) correct a scrivener's error in a Party name as set forth in the Agreement, in each case, on the terms and subject to the conditions set forth herein.

    NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

    1. Definitions. Capitalized terms used and not defined in this Amendment have the respective meanings assigned to them in the Agreement.

    2. Amendment to Correct Scrivener's Error.  The Parties acknowledge and agree that the Agreement contains a scrivener's error in that the legal name of VCP is incorrectly stated as "VCP (Proprietary) Limited," whereas the correct, legal name of VCP is "Value Capital Partners (Pty) Ltd."  Accordingly, as of the date hereof, each reference to "VCP (Proprietary) Limited" in the preamble to the Agreement, the signature page thereto, and any other reference to VCP therein, is hereby amended and restated in its entirety to read as follows: "Value Capital Partners (Pty) Ltd." 

    3. Amendments to Section 1 of the Agreement. As of the date hereof, Section 1 of the Agreement is hereby amended or modified as follows:

    (a) Section 1(b)(vi) of the Agreement is hereby deleted in its entirety.

    4. Amendments to Section 2 of the Agreement.  As of the date hereof, Section 2 of the Agreement is hereby amended or modified as follows:

    (a) The preamble to Section 2 of the Agreement is hereby amended deleting the words "the Company's 2021 annual meeting of shareholders (the "2021 Annual Meeting")" and substituting in lieu thereof the words "the 2022 Annual Meeting."

    

    (b) Section 2(b) of the Agreement is hereby amended deleting the number "19.9%" and substituting in lieu thereof the number "24.9%."

    (c) Section 2(e) of the Agreement is hereby amended and restated in its entirety as follows:

     "(e) seek, propose or make any statement with respect to, or solicit, negotiate with, or provide any information to any person with respect to, an acquisition of control or other business combination, tender or exchange offer or sale of all or substantially all of the assets of the Company;"

    (d) The paragraph at the end of Section 2 of the Agreement, beginning with the words, "Notwithstanding anything to the contrary . . . ." is hereby amended and restated in its entirety as follows:

    "In the event that (i) the repurchase or other acquisition of shares of Common Stock by the Company (including any acquisition as a result of the forfeiture of any shares of restricted stock granted under any Company stock incentive plan) or (ii) any other similar corporate action taken by the Company has the effect, directly or indirectly, of increasing the proportion of outstanding shares of Common Stock or any other class of Securities of the Company which are directly or indirectly beneficially owned by VCP and any of its controlled and controlling Affiliates to an amount in excess of 24.9% of the then-outstanding shares of Common Stock (such shares in excess of 24.9% of the then-outstanding shares of Common Stock, the "Excess Shares"), VCP and its controlled and controlling Affiliates irrevocably and unconditionally agree during the term of this Agreement, at any annual or special meeting of the Company called, and at every adjournment or postponement thereof, and on every action or approval by written consent or consents of the Company shareholders, to take all such action as may be requested by the Company to vote, or cause the holder of record to vote, all of the Excess Shares in the same proportion as all other shares of Common Stock voted by all shareholders in respect of such matters presented thereat, including, for the avoidance of doubt, such shares beneficially owned by VCP and its controlled and controlling Affiliates (other than the Excess Shares).

    Notwithstanding anything to the contrary herein, except as set forth in the immediately preceding paragraph, nothing in this Agreement shall restrict (i) VCP's ability to vote, transfer or hedge any Common Stock beneficially owned by it or (ii) the New Nominee from taking any action in his or her capacity as a director of the Company in a manner consistent with his or her fiduciary duties to the Company, and the taking of any such action by such individuals shall not be a breach of this Agreement."

    5. Amendments to Section 6 of the Agreement.  As of the date hereof, Section 6 of the Agreement is hereby amended or modified by deleting the words, "for the 2020 Annual Meeting and 2021 Annual Meeting" in the second sentence and substituting in lieu thereof the words, "for the 2020 Annual Meeting, 2021 Annual Meeting, and 2022 Annual Meeting."

    
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    6. Amendments to Section 14 of the Agreement.  Section 14 of the Agreement is hereby amended or modified by inserting at the end of the first paragraph thereof, immediately following the sentence ending with the words ". . . with respect to the Confidential Information that has not previously been disclosed," the words:  "The Parties acknowledge that Monde Nkosi has been appointed to the Board and that he is a senior executive of VCP and that the term "New Nominee" for purposes of this Section 14 and Section 5 shall include Mr. Nkosi."

    7. Date of Effectiveness; Limited Effect.  This Amendment shall be deemed as of the date first written above.  Except as expressly provided in this Amendment, all of the terms and provisions of the Agreement are and will remain in full force and effect and are hereby ratified and confirmed by the Parties.  Without limiting the generality of the foregoing, the amendments contained herein will not be construed as an amendment to or waiver of any other provision of the Agreement or as a waiver of or consent to any further or future action on the part of either Party that would require the waiver or consent of the other Party.  On and after the date hereof, each reference in the Agreement to "this Agreement," "the Agreement," "hereunder," "hereof," "herein," or words of like import, and each reference to the Agreement in any other agreements, documents, or instruments executed and delivered pursuant to, or in connection with, the Agreement, will mean and be a reference to the Agreement as amended by this Amendment.

    8. Miscellaneous.

    (a) This Amendment is governed by and construed in accordance with, the laws of the State of New York, without regard to the conflict of laws provisions of such State.

    (b) This Amendment shall inure to the benefit of and be binding upon each of the Parties and each of their respective successors and assigns.

    (c) The headings in this Amendment are for reference only and do not affect the interpretation of this Amendment.

    (d) This Amendment may be executed in counterparts, each of which is deemed an original, but all of which constitute one and the same agreement.  Delivery of an executed counterpart of this Amendment electronically or by facsimile shall be effective as delivery of an original executed counterpart of this Amendment.

    (e) This Amendment constitutes the sole and entire agreement between the Parties with respect to the subject matter contained herein, and supersedes all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, with respect to such subject matter.

    [Signature Page Follows]

    
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    IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first written above.

    	
                 

            	
                 

                NET 1 UEPS TECHNOLOGIES, INC.

                 

            
	
                 

            	
                 

                By:__/s/Alex M.R. Smith _______________

                Name: Alex M.R. Smith

                Title: Chief Financial Officer

            
	
                 

            	
                 

                 

                VALUE CAPITAL PARTNERS (PTY) LTD.

            
	
                 

            	
                 

                 

                By:__Antony C. Ball___________________

                Name: Antony C. Ball

                Title:

            

    

    
         

        [Signature Page to Amendment No. 1 to Cooperation Agreement]ex_216537.htm

 

Exhibit 10.1

 

SECOND AMENDMENT TO

SECOND AMENDED AND RESTATED LOAN AGREEMENT

 

THIS SECOND AMENDMENT TO SECOND AMENDED AND RESTATED LOAN AGREEMENT (this “Amendment”) is dated as of the   4th   day of November, 2020, by and between Bank of America, N.A. (the “Bank”) and Hooker Furniture Corporation, a Virginia corporation, Bradington-Young, LLC, a Virginia limited liability company, Sam Moore Furniture LLC, a Virginia limited liability company, and Home Meridian Group, LLC, a Virginia limited liability company (collectively, the “Borrowers,” and individually, a “Borrower”).

 

The Borrowers and the Bank are parties to a Second Amended and Restated Loan Agreement dated as of September 29, 2017, as amended by a First Amendment to Second Amended and Restated Loan Agreement dated as of January 31, 2019 (as so amended, the “Existing Loan Agreement”), and they now desire to amend certain provisions of the Existing Loan Agreement as provided herein.

 

Accordingly, for and in consideration of the premises and the mutual covenants contained herein, the receipt and sufficiency of which consideration are hereby mutually acknowledged, the Borrowers and the Bank hereby agree as follows:

 

1.     Capitalized Terms; Effective Date. Capitalized terms used in this Amendment which are not otherwise defined herein shall have the meanings assigned thereto in the Existing Loan Agreement, as amended by this Amendment (the Existing Loan Agreement, as amended by this Amendment, being hereinafter referred to as the “Loan Agreement”). Except as expressly provided to the contrary herein, all amendments to the Existing Loan Agreement set forth herein shall be effective as of the date of this Amendment.

 

2.     Amendments to Existing Loan Agreement. The following provisions of the Existing Loan Agreement are amended as follows:

 

2.1.     Letters of Credit under Facility No. 1. Section 1.5(a) and (b) of the Existing Loan Agreement are amended to read as follows:

 

“(a)     As a subfeature under Facility No. 1, the Bank may from time to time up to and including the Facility No. 1 Expiration Date, issue letters of credit for the account of the Borrowers; provided, however, that the form and substance of each application for a letter of credit and each letter of credit shall be subject to approval by the Bank, which approval shall not be unreasonably withheld or delayed; and provided further that the aggregate undrawn amount of all outstanding letters of credit shall not at any time exceed $10,000,000. Issuance of workers’ compensation letters of credit shall be subject to validation and approval of modifier and loss reserve by the Bank. Each letter of credit shall be issued for a term not to exceed 366 days, as designated by the Borrowers, provided, however, that the Bank shall not be obligated to issue a letter of credit that would have an expiration date subsequent to the Facility No. 1 Expiration Date. Each draft or other demand for payment paid by the Bank under a letter of credit shall be deemed an advance under the line of credit and shall be repaid in accordance with the terms of the line of credit; provided however, that if the line of credit is not available for any reason whatsoever, at the time any draft or demand is paid by the Bank, or if advances are not available under the line of credit in such amount due to any limitation of borrowing set forth herein, then the full amount of such drafts or demand shall be immediately due and payable, together with interest thereon from the date such amount is paid by the Bank to the date such amount is fully repaid by the Borrowers at the rate of interest applicable to advances under Facility No. 1. In such event, the Bank, in its sole discretion, may debit any account maintained by the Borrowers with the Bank for the amount

 

-1-

 

 

of any such drawing. The Borrowers agree to deposit in a cash collateral account with the Bank an amount equal to the aggregate outstanding undrawn face amount of all letters of credit which remain outstanding on the Facility No. 1 Expiration Date. The Borrowers grant a security interest in such cash collateral account to the Bank to secure the Obligations of the Borrowers. Amounts held in such cash collateral account shall be applied by the Bank to the payment of drafts drawn under such letters of credit and to the obligations and liabilities of the Borrowers to the Bank, in such order of application as the Bank may in its sole discretion elect.

 

(b)     The amount of any letters of credit outstanding under Facility No. 1 at any one time (including the drawn and unreimbursed amounts of the letters of credit) may not exceed $10,000,000 in the aggregate.”

 

3.     No Other Amendments; Reaffirmation by Borrowers. Except as expressly amended hereby, the terms of the Loan Agreement shall remain in full force and effect in all respects, and each Borrower hereby reaffirms its obligations under the Loan Agreement and under each of the other Loan Documents to which it is a party.

 

4.     References. All references in the Loan Agreement to “this Agreement,” “herein,” “hereunder” or other words of similar import, and all references to the “Loan Agreement” or similar words in the other Loan Documents, or any other document or instrument that refers to the Loan Agreement, shall be deemed to be references to the Loan Agreement as amended by this Amendment.

 

5.     Expenses. The Borrowers hereby agree to pay all costs and expenses incurred by the Bank in connection with the preparation of this Amendment and the consummation of the transactions described herein, including, without limitation, the reasonable attorneys’ fees and expenses of the Bank.

 

6.     Applicable Law. This Amendment shall be construed in accordance with and governed by the laws of the Commonwealth of Virginia, without reference to conflicts of law principles.

 

7.     Counterparts; Electronic Delivery. This Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same instrument. Delivery by any party to this Amendment of its signatures hereon through facsimile or other electronic image file (including .pdf) (i) may be relied upon as if this Amendment were physically delivered with an original hand-written signature of such party, and (ii) shall be binding on such party for all purposes.

 

8.     Successors. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

 

[Signatures begin on following page]

 

 

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IN WITNESS WHEREOF, the Borrowers and the Bank have caused this Amendment to be duly executed under seal, all as of the day and year first above written.

 

	
			Bank:

				
			Borrowers:

			
	
			 

			Bank of America, N.A.

			 

			 

			By: Colleen Landau                      

			Name: Colleen Landau

			Title: Vice President

				
			 

			Hooker Furniture Corporation

			 

			 

			By: Paul A. Huckfeldt                (Seal)

			Name: Paul A. Huckfeldt 

			Title: Chief Financial Officer and Senior Vice President - Finance and Accounting

			 

			Bradington-Young, LLC

			 

			 

			By: Paul A. Huckfeldt                (Seal)

			Name: Paul A. Huckfeldt 

			Title: Chief Financial Officer and Senior Vice President - Finance and Accounting

			 

			Sam Moore Furniture LLC

			 

			 

			By: Paul A. Huckfeldt                (Seal)

			Name: Paul A. Huckfeldt 

			Title: Chief Financial Officer and Senior Vice President - Finance and Accounting

			 

			Home Meridian Group, LLC

			 

			 

			By: Paul A. Huckfeldt  (Seal)

			Name: Paul A. Huckfeldt 

			Title: Chief Financial Officer and Senior Vice President - Finance and Accounting

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