Document:

Net 1 UEPS Technologies, Inc. - Exhibit 10.25 - Filed by newsfilecorp.com

RELATIONSHIP AGREEMENT 

 

between 

 

NET 1 UEPS TECHNOLOGIES, INC 

 

and 

 

NET1 APPLIED TECHNOLOGIES SOUTH AFRICA (PROPRIETARY) LIMITED

 

and 

 

BUSINESS VENTURE INVESTMENTS NO 1567 (PROPRIETARY) LIMITED
(RF) 

 

and 

 

MOSOMO INVESTMENT HOLDINGS (PROPRIETARY) LIMITED 

ii 

TABLE OF CONTENTS 

	1
      	PARTIES
      	1
      
	 	 	 
	2
      	INTERPRETATION
      	1
      
	 	 	 
	3
      	INTRODUCTION
      	12
      
	 	 	 
	4
      	CONDITIONS
      PRECEDENT 	12
      
	 	 	 
	5
      	SUBSCRIPTION
      	13
      
	 	 	 
	6
      	LOAN
      	14
      
	 	 	 
	7
      	TRANSFER
      RESTRICTIONS 	14
      
	 	 	 
	8
      	BEE
      CREDENTIALS 	17
      
	 	 	 
	9
      	RING-FENCING
      OF BEE SPV 	18
      
	 	 	 
	10
      	RESTRICTIONS
      ON DISPOSAL OF BEE SPV SHARES 	18
      
	 	 	 
	11
      	FORCED
      SALE PROVISIONS 	18
      
	 	 	 
	12
      	BEE
      COMPLIANCE CERTIFICATE 	21
      
	 	 	 
	13
      	MATTERS
      RELATING TO US SECURITIES AND COMPETITION LAWS 	23
      
	 	 	 
	14
      	REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY 	24
      
	 	 	 
	15
      	REPRESENTATIONS
      AND WARRANTIES OF BEE SPV 	25
      
	 	 	 
	16
      	CONFIDENTIALITY
      AND RESTRAINT UNDERTAKINGS 	26
      
	 	 	 
	17
      	ANTI-CORRUPTION
      CONTROLS AND BUSINESS PRACTICES 	30
      
	 	 	 
	18
      	DURATION
      OF THE UNDERTAKINGS AND RESTRICTIONS 	32
      
	 	 	 
	19
      	AUDIT
      	33
      
	 	 	 
	20
      	CALL
      OPTION 	33
      
	 	 	 
	21
      	BREACH
      	34
      
	 	 	 
	22
      	DISPUTE
      RESOLUTION 	34
      
	 	 	 
	23
      	NOTICES
      AND DOMICILIA 	35
      
	 	 	 
	24
      	APPLICABLE
      LAW AND JURISDICTION 	37
      
	 	 	 
	25
      	UNDERTAKINGS
      BY THE PARTIES 	37
      
	 	 	 
	26
      	INDEPENDENT
      ADVICE 	38
      
	 	 	 
	27
      	GENERAL
      	38
      
	 	 	 
	28
      	COSTS
      	40
      
	 	 	 
	29
      	PUBLICITY
      	41
      
	 	 	 
	30
      	MATERIAL
      NON-PUBLIC INFORMATION 	41
      
	 	 	 
	31
      	STANDSTILL
      	41
      
	 	 	 
	32
      	SIGNATURE
      	42
      

ANNEXURES 

	ANNEXURE
      “A”: TRANSFER SECRETARY DIRECTION LETTER 
	 
	ANNEXURE
      “B”: STOCK POWER 
	 
	ANNEXURE
      “C”: FCPA QUESTIONNAIRE 

	1 	
      PARTIES

	1.1 	
      The Parties to this Agreement are
–

	1.1.1 	
      Net 1 UEPS Technologies, Inc., a Florida
    corporation;

	 	 
	1.1.2 	
      Net1 Applied Technologies South Africa (Proprietary)
      Limited;

	 	 
	1.1.3 	
      Business Venture Investments No 1567 (Proprietary)
      Limited (RF); and

	 	 
	1.1.4 	
      Mosomo Investment Holdings (Proprietary)
  Limited.

	1.2 	
      This Agreement supersedes any previous agreements
      concluded between the Parties with the Company, in relation to the
      acquisition of any shares of the Company.

	 	 
	1.3 	
      The Parties agree as set out
below.

	2 	
      INTERPRETATION

	2.1 	
      In this Agreement, unless the context indicates a
      contrary intention, the following words and expressions bear the meanings
      assigned to them and cognate expressions bear corresponding meanings
    –

	2.1.1 	
      "AFSA" means the Arbitration Foundation of
      Southern Africa;

	 	 
	2.1.2 	
      "Agreement" means the agreement contained in this
      document, including all annexures hereto;

	 	 
	2.1.3 	
      "BEE Act" means the Broad-Based Black Economic
      Empowerment Act, No 53 of 2003 as amended from time to time;

	 	 
	2.1.4 	
      "BEE Codes" means the Codes of Good Practice on
      Broad-Based Black Economic Empowerment, published under section 9(1) of
      the BEE Act, in Government Gazette No 29617 on 9 February 2007 as amended
      from time to time;

	 	 
	2.1.5 	
      "BEE Compliance Certificate" means, at any time, a
      certificate issued by such person as is designated from time to time for
      such purpose by the Company by way of notice to the BEE Shareholders,
      certifying (at the relevant time) whether or not any of the warranties,
      representations and undertakings referred to in clauses 8.1.1.1 to 8.1.1.2
      (inclusive) have been or are being breached in any way, and confirming the
  status of the relevant entity, as contemplated in clause 8.1.1.3;

2 

	2.1.6 	
      “BEE Parties” means BEE SPV and the BEE
      Shareholders;

	 	 
	2.1.7 	
      "BEE Shareholders" means Mosomo and such other
      persons or entities as may become holders of shares in the issued share
      capital of BEE SPV at any time in the future;

	 	 
	2.1.8 	
      "BEE Shares" means 4,100,000 (four million one
      hundred thousand) shares of the Company’s common stock, par value $.001
      per share;

	 	 
	2.1.9 	
      "BEE SPV" means Business Venture Investments No
      1567 (Proprietary) Limited (RF), registration number 2011/115501/07, a
      limited liability, private, ring-fenced company, duly incorporated in
      accordance with the laws of the Republic of South
Africa;

	2.1.10 	
      "Black Company" means
–

	2.1.10.1 	
      with reference to BEE SPV being a Black Company, BEE SPV
      being a company in respect of which Black People
–

	2.1.10.1.1 	
      have the ability to control, on a modified flow-through
      basis (as such term is contemplated in the BEE Codes), 100% (one hundred
      percent) of all voting rights which are exercisable by the shareholders of
      BEE SPV in general meeting or otherwise; and

	 	 
	2.1.10.1.2 	
      are entitled to 100% (one hundred percent) of the
      economic interest which may be distributed to the shareholders of BEE SPV
      from time to time by virtue of their shareholding in BEE SPV, measured on
      a modified flow-through basis (as such term is contemplated in the BEE
      Codes);

	2.1.10.2 	
      with reference to any other company being a Black
      Company, such company being a company in respect of which Black People
      –

	2.1.10.2.1 	
      have the ability to control, on a flow-through basis (as
      such term is contemplated in the BEE Codes), in excess of 50% (fifty
      percent) of all voting rights which are exercisable by the shareholders of
      such company in general meeting or otherwise; and

	 	 
	2.1.10.2.2 	
      are entitled to more than 50% (fifty percent) of the
      economic interest which may be distributed to the shareholders of such
      company from time to time by virtue of their shareholding in such company,
measured on a flow-through basis (as such term is contemplated in the BEE Codes);

3 

	2.1.11 	
      "Black Entity" means –

	2.1.11.1 	
      a Black Company; and

	 	 
	2.1.11.2 	
      any other corporation or other entity in respect of which
      Black People –

	2.1.11.2.1 	
      have the ability to control, on a flow-through basis (as
      such term is contemplated in the BEE Codes), in excess of 50% (fifty
      percent) of all voting rights which are exercisable by any one or more
      persons in respect of the direction of the management or policies of such
      Entity; and

	 	 
	2.1.11.2.2 	
      are directly or indirectly entitled to more than 50%
      (fifty percent) of the economic interest which may be distributed to the
      members or beneficiaries of such Entity, however described or designated,
      measured on a flow-through basis (as such term is contemplated in the BEE
      Codes);

	2.1.12 	
      "Black People" is as defined in Schedule 1 to the
      BEE Codes, and "Black Person" shall be construed
  accordingly;

	 	 
	2.1.13 	
      "Board" means the board of directors of the
      Company;

	 	 
	2.1.14 	
      "Business" means the business carried on by the
      Company and its subsidiaries from time to time, being the provision of
      payment solutions, transaction processing services and financial services
      across a wide range of industries and in various countries;

	 	 
	2.1.15 	
      “Change of Control” means any transaction or
      series of transactions by which: (i) any “person” or “group”, is or
      becomes the “beneficial owner” (as such terms are defined in the Exchange
      Act and the rules thereunder) of more than 50% (fifty percent) of the
      total voting power of the Company’s common stock then outstanding; or (ii)
      another corporation or other entity merges into the Company or the Company
      consolidates with or merges into any other corporation or other entity
      where any of the outstanding common stock of the Company or such other
      corporation or other entity is converted into or exchanged for cash,
      securities or other property (other than any such transaction where the
      common stock of the Company is converted into or exchanged for voting
      stock of the surviving or transferee person constituting a majority of the
      outstanding shares of such voting stock of such surviving
  or transferee person immediately after giving effect to such
      issuance); or (iii) the Company and its subsidiaries, taken as a whole,
      transfer all or substantially all their assets to any person or group, in
      one transaction or a series of transactions (other than a transfer between
  the Company and a wholly-owned subsidiary of the Company);

4 

	2.1.16 	
      "Company" means Net 1 UEPS Technologies, Inc., a
      Florida corporation;

	 	 
	2.1.17 	
      "Conditions Precedent" means the suspensive
      conditions set out in clause 4;

	 	 
	2.1.18 	
      "Confidential Information" means any information
      or data relating to the Company or any of its subsidiaries or to the
      Business (even if not marked as being confidential, restricted, secret,
      proprietary or any similar designation), in whatever format and whether
      recorded or not (and if recorded, whether recorded in writing, on any
      electronic medium or otherwise), which –

	2.1.18.1 	
      by its nature or content is identifiable as confidential
      and/or proprietary to the Company or its subsidiaries; or

	 	 
	2.1.18.2 	
      is intended or by its nature or content could reasonably
      be expected to be confidential and/or proprietary to the Company or its
      subsidiaries,

	 	 
		
      and includes any of the following –

	 	 
	2.1.18.3 	
      information relating to the Company or its subsidiaries
      or the Business, existing and future strategic objectives and existing and
      future business plans and corporate opportunities;

	 	 
	2.1.18.4 	
      trade secrets;

	 	 
	2.1.18.5 	
      technical information, techniques, know-how, operating
      methods and procedures;

	 	 
	2.1.18.6 	
      details of costs, sources of materials and customer lists
      (whether actual or potential) and other information relating to the
      existing and prospective customers and suppliers of the Company or its
      subsidiaries;

	 	 
	2.1.18.7 	
      pricing, price lists and purchasing policies;

	 	 
	2.1.18.8 	
      computer data, programmes and source
  codes;

5 

	2.1.18.9 	
      information contained in or constituting the hardware or
      software of the Company or its subsidiaries, including third party
      products and associated material;

	 	 
	2.1.18.10 	
      information relating to the Company or its subsidiaries'
      network telecommunications services and facilities;

	 	 
	2.1.18.11 	
      any and all methodologies, formulae and related
      information in developed software and processes and other business of the
      Company or its subsidiaries;

	 	 
	2.1.18.12 	
      products, drawings, designs, plans, functional and
      technical requirements and specifications;

	 	 
	2.1.18.13 	
      Intellectual Property that is proprietary to the Company
      or its subsidiaries or that is proprietary to a third party and in respect
      of which the Company or its subsidiaries has rights of use or
      possession;

	 	 
	2.1.18.14 	
      marketing information of whatsoever nature or kind, other
      than that which is used or distributed by the Company or its subsidiaries
      externally in marketing its services to existing or potential
    clients;

	 	 
	2.1.18.15 	
      financial information of whatsoever nature or
  kind;

	 	 
	2.1.18.16 	
      information relating to any contracts to which the
      Company or any of its subsidiaries is a party; and

	 	 
	2.1.18.17 	
      any information which is not readily available to a
      competitor of the Company or any of its subsidiaries in the ordinary
      course of business;

	2.1.19 	
      “CPS” means Cash Paymaster Services (Pty) Limited
      (Registration Number 1971/007195/07), a limited liability private company
      duly incorporated in accordance with the laws of the Republic of South
      Africa;

	 	 
	2.1.20 	
      "Disposal" and "Dispose" means, in the
      context of a disposal of a BEE Share or a share in BEE SPV
  –

	2.1.20.1 	
      the transfer of all or any rights making up such share to
      any other person for his benefit and/or for the benefit of others, whether
      such transfer is effected pursuant to a sale, exchange, donation,
      distribution in specie or otherwise; or

6 

	2.1.20.2 	
      any other transaction or event whereby such share becomes
      beneficially owned by someone other than the person who was the beneficial
      holder thereof immediately prior to such transaction or event taking
      place; or

	 	 
	2.1.20.3 	
      granting, creating or allowing the encumbrance of such
      share,

		
      and "dispose" means to bring about a disposal
      within the meaning of this definition;

	 	 
	2.1.21 	
      “Equivalent CPS Shares” means a percentage of the
      shareholding in the share capital of CPS, of ordinary shares, calculated
      using the following formula:

	 	 
		
      BS/4,400,000 x 30%

	 	 
		
      With:

	 	 
		
      BS being the amount of BEE Shares held by BEE SPV at the
      time;

	 	 
	2.1.22 	
      “Exchange Act” means the United States Securities
      Exchange Act of 1934, as amended from time to time;

	 	 
	2.1.23 	
      “Fulfillment Date” means the date on which the
      last of the Conditions Precedent are fulfilled or waived, as the case may
      be;

	 	 
	2.1.24 	
      "Fair Market Value" means, in relation to any BEE
      Share, the volume weighted average price of the common stock of the
      Company on the Nasdaq for the 30 (thirty) trading day period immediately
      prior the date of the Offer (as defined in clause 7.4.1), or the
      occurrence of the relevant Trigger Event, or the Call Notice contemplated
      in clause 20.1, as the case may be, converted at the SARB Exchange Rate on
      the date of the Trigger Event, the Offer or the Call Notice
      aforementioned;

	 	 
	2.1.25 	
      "Governmental Body" means any country, any
      national body, any state, province, municipality, or subdivision of any of
      the foregoing, any Governmental department, or any agency, court, entity,
      commission, board, ministry, bureau, locality or authority of any of the
      foregoing, or any quasi-Governmental or private body exercising any
      regulatory, taxing, importing, exporting, or other Governmental or
      quasi-Governmental function;

7 

	2.1.26 	
      "Intellectual Property" means the following in any
      location or jurisdiction worldwide –

	2.1.26.1 	
      all inventions (whether patentable or unpatentable) and
      whether or not reduced to practise), all improvements thereto, and all
      patents, patent applications, and patent disclosures, together with all
      revisions, extensions and re-examinations thereof;

	 	 
	2.1.26.2 	
      all trademarks, service marks, trade dress, logos, trade
      names and corporate names, (including all internet and intranet names,
      addresses and all applications, registrations, and renewals in connection
      therewith;

	 	 
	2.1.26.3 	
      all works capable of copyright, all copyright, and all
      applications, registrations and renewals in connection therewith,
      including drawings;

	 	 
	2.1.26.4 	
      all trade secrets and business information;

	 	 
	2.1.26.5 	
      all computer software (including data and related
      documentation);

	 	 
	2.1.26.6 	
      all other proprietary rights; and

	 	 
	2.1.26.7 	
      all copies and tangible embodiments thereof, in each
      instance in whatever form or medium;

	2.1.27 	
      “Interest” means the interest payable by BEE SPV
      to NET1 in respect of the Loan Amount, calculated at a rate of JIBAR plus
      300 (three hundred) basis points, compounded every 6 (six)
  months;

	 	 
	2.1.28 	
      “Interest Period” means each period of 6 (six)
      months, from 2 January to 1 July and 2 July to 1 January of each calendar
      year. The first interest period shall commence to run on the Payment Date
      to 1 July or 1 January, whichever immediately follows the Payment Date.
      Each Interest Period thereafter shall run from the date immediately
      following the date of expiry of the preceding Interest Period, even if the
      first day of this Interest Period is not a business day;

	 	 
	2.1.29 	
      “Issue Date” means the date on which the BEE
      Shares are issued to BEE SPV pursuant to this Agreement;

	 	 
	2.1.30 	
      “JIBAR” means the Johannesburg Interbank Average
      Rate applicable to the relevant Interest Period;

	 	 
	2.1.31 	
      “JSE” means the stock exchange operated by JSE
      Limited;

8 

	2.1.32 	
      “Loan Amount” means the amount required by the BEE
      SPV to purchase and subscribe for the BEE Shares, at the Subscription
      Price, being ZAR 246,000,000 (two hundred, forty six million South African
      Rand);

	 	 
	2.1.33 	
      "Lock Up Period" means a period commencing on the
      Issue Date and ending on the date that the Outstanding Balance is repaid
      by BEE SPV to NET1 in full, or 5 (five) years from the Issue Date,
      whichever period ends last;

	 	 
	2.1.34 	
      "Mosomo" means Mosomo Investment Holdings (Pty)
      Ltd (Registration Number 2009/012790/07) a limited liability private
      company duly incorporated in accordance with the laws of the Republic of
      South Africa;

	 	 
	2.1.35 	
      “NET1” means Net1 Applied Technologies South
      Africa (Pty) Ltd (Registration Number 2002/031446/07) a limited liability
      private company duly incorporated in accordance with the laws of the
      Republic of South Africa;

	 	 
	2.1.36 	
      “Outstanding Balance” means at any date of
      determination, the outstanding balance of the Loan Amount plus all accrued
      and unpaid Interest owing by BEE SPV to NET1;

	 	 
	2.1.37 	
      “Payment Date” means the date on which NET1
      extends the Loan Amount to BEE SPV, which will be used by BEE SPV to pay
      the Company the Subscription Price for the BEE Shares;

	 	 
	2.1.38 	
      "Parties" means the parties to this Agreement as
      set out in clause 1 above, and the term “Party” means any one of
      them, as the context requires;

	 	 
	2.1.39 	
      “SARB Exchange Rate” means on any date, the
      currency exchange rate for the United States Dollar, against the South
      African Rand, published daily by the South African Reserve Bank;

	 	 
	2.1.40 	
      “SEC” means the United States Securities and
      Exchange Commission;

	 	 
	2.1.41 	
      "Securities Act" means the United States
      Securities Act of 1933, as amended;

	 	 
	2.1.42 	
      “Shareholders Agreement” means a shareholders
      agreement between BEE SPV and NET1 governing their relationship in
      relation to CPS and transferring the security and BEE features of this
      Agreement, in relation to the BEE Shares, to the Equivalent CPS Shares, to
      the satisfaction of NET1, which agreement shall only come into force and
      effect in the event of the Company exercising the call option contemplated
      in clause 20;

9 

	2.1.43 	
      "Signature Date" means the date of signature of
      this Agreement by the Party last signing;

	 	 
	2.1.44 	
      “Subscription Price” means 75% (seventy five
      percent) of the price of the common stock of the Company, per share, as
      quoted on the JSE at closing on 6 December 2013, being ZAR 60.00 (sixty
      South African Rand), calculated as follows: ZAR 80.00 x 75%;

	 	 
	2.1.45 	
      “Target Date” means the first occasion on which
      the common stock of the Company trades at the Target Price on the JSE or
      Nasdaq. The “Target Price” is ZAR120.00 (one hundred and twenty
      South African Rand) and, in respect of trades on the Nasdaq, the trade
      price, in United States Dollars, shall be converted to South African Rand
      at the SARB Exchange Rate for the day on which the transaction occurs, to
      determine whether or not the Target Price has been reached;

	 	 
	2.1.46 	
      "Transaction Documents" means this Agreement and
      any written and signed agreement among the Parties which in whole or in
      part regulates the issuance of any securities to BEE SPV by the Company or
      which relates directly or indirectly to the acquisition, holding, cession
      or disposition of shares in the Company by BEE SPV pursuant to this
      Agreement; and

	 	 
	2.1.47 	
      “Trigger Event” shall bear the meaning assigned to
      it in clause 11.

	2.2 	
      In this Agreement -

	2.2.1 	
      clause headings and the heading of the Agreement are for
      convenience only and are not to be used in its interpretation;

	 	 
	2.2.2 	
      an expression which denotes -

	2.2.2.1 	
      any gender includes the other genders;

	 	 
	2.2.2.2 	
      a natural person includes a juristic person and vice
      versa;

	 	 
	2.2.2.3 	
      the singular includes the plural and vice
      versa;

	 	 
	2.2.2.4 	
      a Party includes a reference to that Party’s successors
      in title and assigns allowed at law; and

	 	 
	2.2.2.5 	
      a reference to a consecutive series of two or more
      clauses is deemed to be inclusive of both the first and last mentioned
      clauses.

10 

	2.3 	
      Any reference in this Agreement to
–

	2.3.1 	
      "business hours" shall be construed as being the
      hours between 08h30 and 17h00 on any business day. Any reference to time
      shall be based upon South African Standard Time;

	 	 
	2.3.2 	
      "days" shall be construed as calendar days unless
      qualified by the word "business", in which instance a "business day" will
      be any day other than a Saturday, Sunday or public holiday as gazetted by
      the government of the Republic of South Africa from time to
time;

	 	 
	2.3.3 	
      "laws" means all constitutions; statutes;
      regulations; by-laws; codes; ordinances; decrees; rules; judicial,
      arbitral, administrative, ministerial, departmental or regulatory
      judgments, orders, decisions, rulings, or awards; policies; voluntary
      restraints; guidelines; directives; compliance notices; abatement notices;
      agreements with, requirements of, or instructions by any Governmental
      Body; and the common law, and “law” shall have a similar meaning
      and

	 	 
	2.3.4 	
      "person" means any person, company, close
      corporation, trust, partnership or other entity whether or not having
      separate legal personality.

	2.4 	
      The words "include" and "including" mean
      "include without limitation" and "including without limitation". The use
      of the words "include" and "including" followed by a
      specific example or examples shall not be construed as limiting the
      meaning of the general wording preceding it.

	 	 
	2.5 	
      Any substantive provision, conferring rights or imposing
      obligations on a Party and appearing in any of the definitions in this
      clause 2 or elsewhere in this Agreement, shall be given effect to as if it
      were a substantive provision in the body of the Agreement.

	 	 
	2.6 	
      Words and expressions defined in any clause shall, unless
      the application of any such word or expression is specifically limited to
      that clause, bear the meaning assigned to such word or expression
      throughout this Agreement.

	 	 
	2.7 	
      Unless otherwise provided, defined terms appearing in
      this Agreement in title case shall be given their meaning as defined,
      while the same terms appearing in lower case shall be interpreted in
      accordance with their plain English meaning.

11 

	2.8 	
      A reference to any statutory enactment shall be construed
      as a reference to that enactment as at the Signature Date and as amended
      or substituted from time to time.

	 	 
	2.9 	
      Unless specifically otherwise provided, any number of
      days prescribed shall be determined by excluding the first and including
      the last day or, where the last day falls on a day that is not a business
      day, the next succeeding business day.

	 	 
	2.10 	
      If the due date for performance of any obligation in
      terms of this Agreement is a day which is not a business day then (unless
      otherwise stipulated) the due date for performance of the relevant
      obligation shall be the immediately preceding business day.

	 	 
	2.11 	
      Where figures are referred to in numerals and in words,
      and there is any conflict between the two, the words shall prevail, unless
      the context indicates a contrary intention.

	 	 
	2.12 	
      The rule of construction that this Agreement shall be
      interpreted against the Party responsible for the drafting of this
      Agreement, shall not apply.

	 	 
	2.13 	
      No provision of this Agreement shall (unless otherwise
      stipulated) constitute a stipulation for the benefit of any person
      (stipulatio alteri) who is not a Party to this Agreement.

	 	 
	2.14 	
      The use of any expression in this Agreement covering a
      process available under South African law, such as winding-up, shall, if
      either of the Parties to this Agreement is subject to the law of any other
      jurisdiction, be construed as including any equivalent or analogous
      proceedings under the law of such other jurisdiction.

	 	 
	2.15 	
      Any reference in this Agreement to "this
      Agreement" or any other agreement or document shall be construed as a
      reference to this Agreement or, as the case may be, such other agreement
      or document, as amended, varied, novated or supplemented from time to
      time.

	 	 
	2.16 	
      In this Agreement the words "clause" or
      "clauses" and "annexure" or "annexures" refer to
      clauses of and annexures to this Agreement.

12 

	3 	
      INTRODUCTION

	3.1 	
      The Company is a Florida corporation and is listed on the
      Nasdaq and on the JSE.

	 	 
	3.2 	
      BEE SPV wishes to acquire shares in the
Company.

	 	 
	3.3 	
      The Company is prepared to issue shares to BEE SPV at a
      discount, to facilitate black economic empowerment in the Republic of
      South Africa.

	 	 
	3.4 	
      NET1 will extend a loan to BEE SPV to enable BEE SPV to
      pay the Subscription Price for the BEE Shares and BEE SPV will cede the
      BEE Shares to NET1 as security for the repayment of the loan. The Loan
      Amount will be paid by NET1 to the Company, at the direction of and on
      behalf of BEE SPV. The Company will then immediately make a capital
      contribution to the equity of NET1 in the amount of the loan.

	 	 
	3.5 	
      The BEE Parties have agreed to enter into this Agreement
      in order to bind themselves to certain warranties, representations and
      undertakings to be given by them in favour of the Company and its
      subsidiaries, including NET1.

	 	 
	3.6 	
      The Parties wish to record in writing their agreement in
      respect of the above and matters ancillary
thereto.

	4 	
      CONDITIONS PRECEDENT

	4.1 	
      Save for clauses 1 to 3 and clauses 16 to 32, all of
      which will become effective immediately, this Agreement is subject to the
      fulfilment of the Conditions Precedent that, by not later than the
      31st day of January 2014 or such later date as may be agreed
      between the Parties –

	4.1.1 	
      all regulatory approvals required for the implementation
      of the Transaction Documents have been duly obtained, including all
      approvals required by the exchange control authorities of the South
      African Reserve Bank;

	 	 
	4.1.2 	
      NET1 and BEE SPV conclude the Shareholders
    Agreement;

	 	 
	4.1.3 	
      BEE SPV and NET1 concludes a cession agreement in terms
      of which the BEE Shares are ceded to NET1 in securitatem debiti for
      all amounts due or which may become due to NET1 in terms of this
      Agreement, which cession shall be prepared by NET1 to its satisfaction;
      and

13 

	4.1.4 	
      BEE SPV signs a transfer secretary direction letter which
      has also been signed by the Company’s South African register transfer
      secretary and one or more stock powers as shall be requested by the
      Company, in each case for the purpose of enforcing clauses 7, 11, 13 and
      20 (a copy of the direction letter and stock powers to be signed are
      attached hereto marked “A” and “B”,
  respectively).

	4.2 	
      The Parties shall use their reasonable commercial
      endeavours and the Parties will co-operate in good faith to procure the
      fulfilment of the Conditions Precedent as soon as reasonably possible
      after the Signature Date.

	 	 
	4.3 	
      The Conditions Precedent contained in clause 4.1.1 is not
      capable of being waived. The remainder of the Condition Precedents may be
      waived by the Company and NET1 in writing (only), prior to the due date
      for fulfillment.

	 	 
	4.4 	
      Unless all the Conditions Precedent have been fulfilled
      or waived by not later than the date for fulfilment thereof set out in
      clause 4.1 (or such later date or dates as may be agreed in writing
      between the Parties) the provisions of this Agreement, save for clauses 1
      to 3, and clauses 16 to 32, which will remain of full force and effect,
      will never become of any force or effect and the status quo ante
      will be restored as near as may be and neither of the Parties will
      have any claim against the other in terms hereof or arising from the
      failure of the Conditions Precedent, save for any claims arising from a
      breach of clause 4.2.

	5 	
      SUBSCRIPTION

	5.1 	
      BEE SPV shall subscribe for and purchase the BEE Shares
      and the Company agrees to sell and issue the BEE Shares to BEE SPV, at the
      Subscription Price.

	 	 
	5.2 	
      All BEE Shares shall be in certificated form, unless the
      Company elects to issue the BEE Shares in book-entry form, and shall be
      registered on the South African branch register of the Company. In the
      event of any sale of any of the BEE Shares on the basis permitted in terms
      of this Agreement, all exchange control requirements of the South African
      Reserve Bank shall be duly complied with.

	 	 
	5.3 	
      The BEE Shares shall be issued to the BEE SPV within 60
      (sixty) days of the Payment Date.

14 

	6 	
      LOAN

	6.1 	
      So as to facilitate the subscription for the BEE Shares
      by BEE SPV, as contemplated in this Agreement, NET1 shall lend and advance
      the Loan Amount to BEE SPV. The Loan Amount may not be used for any other
      purpose.

	 	 
	6.2 	
      BEE SPV irrevocably authorizes NET1 to pay the Loan
      Amount directly to the Company in settlement of the Subscription Price.
      Such payment shall be made within 7 (seven) days of the Fulfillment
      Date.

	 	 
	6.3 	
      Interest shall accrue on the outstanding balance of the
      Loan Amount, from the Payment Date, on a day to day basis and shall be
      serviced by BEE SPV on a bi- annual basis. Accordingly the Interest shall
      be paid by BEE SPV to NET1 on the last business day of each Interest
      Period.

	 	 
	6.4 	
      The Loan Amount shall be repaid by BEE SPV to NET1 as
      follows:

	6.4.1 	
      10% (ten percent) of the Loan Amount (ZAR24,600,000)
      shall be repaid on the first anniversary of the Issue Date;

	 	 
	6.4.2 	
      10% (ten percent) of the Loan Amount (ZAR24,600,000)
      shall be repaid on the second anniversary of the Issue Date;

	 	 
	6.4.3 	
      15% (fifteen percent) of the Loan Amount (ZAR36,900,000)
      shall be repaid on the third anniversary of the Issue Date;

	 	 
	6.4.4 	
      15% (fifteen percent) of the Loan Amount (ZAR123,000,000)
      shall be repaid on the fourth anniversary of the Issue Date; and

	 	 
	6.4.5 	
      the entire Outstanding Balance shall be repaid in full on
      the fifth anniversary of the Issue Date.

	6.5 	
      Notwithstanding anything to the contrary herein
      contained, the total Outstanding Balance will become due and payable by
      BEE SPV to NET1 on the first business day after the Target
  Date.

	7 	
      TRANSFER RESTRICTIONS

	7.1 	
      In addition to the transfer restrictions contained in
      clause 13 related to Securities Act compliance, BEE SPV further agrees
      that it will not during the Lock Up Period, Dispose of in any manner
      (including by way of hedging or derivative transactions or any dividend or
      distribution) any of the BEE Shares that BEE SPV acquires in terms of this
      Agreement, except: (i) for the sole purpose of
utilizing the proceeds of a Disposal to repay the Outstanding
      Balance or any portion thereof, in which event such Disposal shall be
      subject to the provisions contained in clause 7.2; or (ii) in connection
      with a Change of Control in accordance with clause 7.3; or (iii) pursuant
  to clause 7.8.

15 

	7.2 	
      BEE SPV shall only be entitled to sell such portion of
      the BEE Shares as it needs to in order to pay any amount due in terms of
      this Agreement or which may become due within 2 (two) months of it giving
      the Company notice of such intended Disposal. In such event the provisions
      of clauses 7.4.1 to 7.4.4 shall apply to the intended sale. In addition
      thereto, if the Offer is not accepted by NET1, as contemplated in clause
      7.4.4, then and in such event:

	7.2.1 	
      any sale of BEE Shares to a third party may only be
      concluded if (and such sale shall be subject
to):

	7.2.1.1 	
      BEE SPV instructing the buyer, irrevocably, to pay the
      purchase price payable to it, pursuant to such sale, to NET1;
and

	 	 
	7.2.1.2 	
      the buyer providing NET1 with a guarantee, in favour of
      and suitable to NET1 (in its sole discretion), that the purchase price
      payable to BEE SPV pursuant to the sale shall be paid to NET1, within 30
      (thirty) days of the sale being concluded.

	7.2.2 	
      the proceeds of such sale, received by NET1 from the
      buyer, shall be set-off against the Outstanding Balance and NET1 shall pay
      any remaining amount (after applying such set-off) to BEE
  SPV.

	7.3 	
      In the event that the Board approves a proposed
      transaction which, if consummated would result in a Change of Control, BEE
      SPV shall be entitled to tender its BEE Shares to the offeror (in the case
      of a proposed Change of Control event that involves a tender offer), or
      vote its BEE Shares in favour of the transaction (in the case of a
      proposed Change of Control event that involves a shareholder vote). BEE
      SPV agrees that the documents governing the transaction giving rise to the
      Change of Control shall provide that any amounts that would be payable to
      BEE SPV in respect of the BEE Shares in such transaction shall be paid
      first to NET1 in such an amount as shall be sufficient to settle the
      Outstanding Balance, with any excess payable to BEE SPV.

	 	 
	7.4 	
      After the expiration of the Lock Up Period, BEE SPV may
      only Dispose of all or any portion of the BEE Shares in terms of this
      clause 7.4.

16 

	7.4.1 	
      If BEE SPV intends to Dispose of any BEE Shares, then at
      least 30 (thirty) and not more than 60 (sixty) days prior to the date of
      any anticipated Disposal, BEE SPV shall notify the Company in writing that
      it intends to effect such Disposal, stating the amount of proceeds it
      desires to obtain therefrom. The said notice shall be deemed to be an
      irrevocable offer by BEE SPV to sell to the Company such number of BEE
      Shares as would produce the amount of proceeds specified in the notice
      (“Offer”).

	 	 
	7.4.2 	
      The Offer shall be open for and the Company shall have 30
      (thirty) calendar days from the date it receives such notice to accept the
      Offer and elect to purchase all or a portion of such BEE Shares from BEE
      SPV. If the Company accepts the Offer, the BEE SPV shall transfer the
      relevant BEE Shares to the Company within the succeeding 10 (ten) calendar
      days and the Company shall pay the purchase price in respect thereof
      within 30 (thirty) days of such transfer.

	 	 
	7.4.3 	
      The purchase price shall be the Fair Market Value of the
      BEE Shares or such lesser amount as may be agreed between the Company and
      the BEE SPV.

	 	 
	7.4.4 	
      If the Offer is not accepted, then and in such event the
      BEE SPV shall be entitled to Dispose of the BEE Shares offered within 60
      (sixty) days of expiry of the Offer, provided that it shall not sell the
      said shares on terms better than that on which it was available for
      purchase by the Company pursuant to the Offer. If BEE SPV does not
      conclude the Disposal within 60 (sixty) days, then and in such event the
      provisions of this clause 7.4 shall again have to be complied with before
      any other Disposal may be effected.

	7.5 	
      Any share certificates representing the BEE Shares will
      bear legends reflecting the transfer restrictions imposed by this
      Agreement and the Securities Act.

	 	 
	7.6 	
      Any certificates representing the BEE Shares shall remain
      in the possession of the Company secretary and shall only be released to
      BEE SPV in connection with a Disposal by BEE SPV of some or all of its BEE
      Shares in compliance with the provisions of this Agreement. If BEE SPV
      desires to Dispose of only a portion of its BEE Shares, it shall inform
      the Company as to the number of BEE Shares to be Disposed of and the
      number of BEE Shares to be retained. In order to facilitate the Disposal,
      the Company will cancel the certificates for the BEE Shares then owned by
      BEE SPV and issue one or more new certificates evidencing the number of
      BEE Shares to be Disposed of by BEE SPV and one or more new certificates
      evidencing the number of BEE Shares to be retained
by BEE SPV.

17 

	7.7 	
      BEE SPV shall, as a condition also to the issuance of any
      new certificates, but in any event as may be requested by the Company from
      time to time, execute such additional stock powers as the Company shall
      request in order to enable the Company to enforce the provisions of clause
      11 and 13.1 in respect of BEE SPV’s remaining BEE Shares.

	 	 
	7.8 	
      After repayment of all amounts owing by BEE SPV to NET1
      and the Company pursuant to this Agreement, BEE SPV shall be entitled to
      use the BEE Shares as collateral for any finance required by
  it.

	8 	
      BEE CREDENTIALS

	8.1 	
      The BEE Parties hereby, jointly and severally, warrant,
      represent and undertake to the Company that –

	8.1.1 	
      during the period extending from the Signature Date up to
      and including the day on which BEE SPV ceases to be a shareholder in the
      Company –

	8.1.1.1 	
      BEE SPV's authorised share capital, except to the extent
      that the Company in writing agrees otherwise, will comprise 5000 (five
      thousand) ordinary shares of no par value;

	 	 
	8.1.1.2 	
      BEE SPV will be a Black Company; and

	 	 
	8.1.1.3 	
      any BEE certificate issued in respect of BEE SPV will
      confirm that BEE SPV is a Level 1 BEE
contributor;

	8.1.2 	
      no person who has any direct or indirect interest in a
      business in direct competition with the Business will, for so long as BEE
      SPV is a shareholder in the Company, without the prior written consent of
      the Company on each occasion, directly or indirectly have any interest of
      whatsoever nature in BEE SPV, including as a holder of any shares,
      regardless of class, or as a holder of debentures, regardless of class, or
      as a holder of any voting rights, or as a lender or provider of any
      funding or as an advisor, consultant, contractor, beneficiary or
      otherwise; and

	 	 
	8.1.3 	
      only persons elected by and as representatives of the BEE
      Shareholders will be directors of BEE SPV, all such directors shall be
      Black People and no person shall be appointed as a director of BEE SPV
      without the prior consent in writing of the
Company.

18 

	8.2 	
      If any event occurs or any circumstance arises which
      constitutes a breach or which is reasonably expected to result in a breach
      of any of the provisions of this clause 8, each of the BEE Parties shall
      immediately give notice thereof to the Company upon becoming aware of such
      event or circumstance. For this purpose, as soon as such event or
      circumstance comes to the knowledge of any director of BEE SPV, BEE SPV
      shall be deemed to have knowledge of the event or circumstance in
      question.

	9 	
      RING-FENCING

	9.1 	
      No person or entity will become a BEE Shareholder until
      such person or entity has signed a deed of adherence in a form acceptable
      to the Company binding itself to the provisions of this Agreement and the
      other Transaction Documents and all such persons will be either Black
      Entities or Black People.

	 	 
	9.2 	
      If any event occurs or any circumstance arises which
      constitutes a breach or which is reasonably expected to result in a breach
      of any provisions of this clause 9, each of the BEE Parties shall
      immediately give notice thereof to the Company upon becoming aware of such
      event or circumstance. For this purpose, as soon as such event or
      circumstance comes to the knowledge of any director of BEE SPV, BEE SPV
      shall be deemed to have knowledge of the event or circumstance in
      question.

	10 	
      RESTRICTIONS ON DISPOSAL OF BEE SPV
  SHARES

	 	 
		
      The BEE Shareholders shall not at any time, subject to
      clause 18, without the prior written consent of the Company (which consent
      may be granted or withheld in the Company’s sole and absolute discretion),
      Dispose of all or any of its shares in or loan claims against BEE
    SPV.

	 	 
	11 	
      FORCED SALE PROVISIONS

	11.1 	
      If a "Trigger Event" (as hereinafter contemplated)
      occurs, all the BEE Shares held by BEE SPV shall be made available for
      sale to the Company and/or to any other person nominated by the Company as
      contemplated in and in the manner set out in the remaining provisions of
      this clause 11. For the purpose of this clause 11, a "Trigger
      Event" shall be deemed to have occurred if any one or more of the
      following events occur and provided, within 60 (sixty) days of the Company
      first becoming aware of such occurrence, the Company gives notice to BEE
      SPV that the provisions of this clause 11 are being invoked (a "Trigger
      Event Notice") –

19 

	11.1.1 	
      BEE SPV or any of the BEE Shareholders breaches any
      provision of any of the Transaction Documents, in any manner other than as
      contemplated in clause 11.1.8;

	 	 
	11.1.2 	
      the common stock of the Company trades at or below R60.00
      (sixty South African Rand) on the JSE or the equivalent trading price on
      Nasdaq, based on the SARB Exchange Rate on such date;

	 	 
	11.1.3 	
      BEE SPV makes or attempts to make or recommends any offer
      of compromise with its creditors generally;

	 	 
	11.1.4 	
      any of the assets of BEE SPV, or any of the issued shares
      or any other economic or voting interest in BEE SPV, are subjected to
      judicial attachment;

	 	 
	11.1.5 	
      BEE SPV commits an act which if committed by a natural
      person, would constitute an act of insolvency in terms of section
      8(c),(d),(g) or (h) of the Insolvency Act, No 24 of 1936;

	 	 
	11.1.6 	
      BEE SPV fails to satisfy any judgment or any arbitration
      award granted or made against it within 7 (seven) days of the date on
      which such judgment or arbitration award is granted or made;

	 	 
	11.1.7 	
      BEE SPV is wound up, whether provisionally or finally, or
      a resolution is passed by the board of directors of BEE SPV resolving that
      BEE SPV voluntarily begin business rescue proceedings and be placed under
      supervision in terms of the Act (whether or not such resolution is
      subsequently withdrawn, superseded or set aside), or a court makes an
      order placing BEE SPV under supervision and commencing business rescue
      proceedings in terms of the Act (whether or not such order is subsequently
      set aside); or

	 	 
	11.1.8 	
      BEE SPV fails to pay any amount due and payable to NET1
      in accordance with this Agreement.

	11.2 	
      The consideration payable for the BEE Shares, in the
      event of a sale contemplated in this clause 11 ("Forced Sale
      Price") shall be:

	11.2.1 	
      the Fair Market Value thereof or the Subscription Price,
      whichever is the lower, pursuant to a sale triggered by an event
      contemplated in clauses 11.1.1 to 11.1.7; and

	 	 
	11.2.2 	
      the Fair Market Value pursuant to a sale triggered by an
      event contemplated in clause 11.1.8.

20 

	11.3 	
      Upon the giving of a Trigger Event Notice to it, BEE SPV
      shall be deemed to have made an irrevocable offer to sell the BEE Shares
      at the Forced Sale Price to the Company and/or to any other party or
      parties as nominated by the Company in its discretion ("Deemed Forced
      Offer").

	 	 
	11.4 	
      The Company shall, if it wishes to accept the Deemed
      Forced Offer, either for its own benefit and/or for the benefit of any
      party or parties so selected by the Company, give notice to that effect to
      BEE SPV within 90 (ninety) days of the giving of the Trigger Event Notice
      ("Acceptance Notice"). The Acceptance Notice shall
  –

	11.4.1 	
      to the extent that the Deemed Forced Offer is accepted on
      behalf of more than 1 (one) party, specify the name of each
  party;

	 	 
	11.4.2 	
      if the Deemed Forced Offer is accepted on behalf of 1
      (one) party only and that party is not the Company, specify the name of
      such party; and

	 	 
	11.4.3 	
      specify the amount of the BEE Shares in respect of which
      the offer is accepted and being purchased by the purchaser, or each
      purchaser, as the case may be.

	11.5 	
      To the extent that the Company accepts the Deemed Forced
      Offer wholly or partially for the benefit of 1 (one) or more parties
      selected by the Company, the Company shall be regarded as acting as an
      agent for such party or parties, and not as a principal and the Company
      shall have no liability to BEE SPV arising out of or in connection with
      the resulting sale or sales.

	 	 
	11.6 	
      Upon acceptance by the Company of the Deemed Forced Offer
      in accordance with the provisions of clause 11.4, whether such acceptance
      is wholly for the benefit of the Company or wholly for the benefit of any
      party selected by the Company or partially for the benefit of the Company
      and/or any one or more of such selected parties ("Forced Sale
      Purchasers") –

	11.6.1 	
      a sale shall automatically come into existence in terms
      of which BEE SPV sells the BEE Shares at the Forced Sale Price to the
      Forced Sale Purchasers in the proportions set out in the Acceptance
      Notice; and

	 	 
	11.6.2 	
      BEE SPV shall be obliged, on delivery to it of the
      Acceptance Notice, to transfer such BEE Shares to the Forced Sale
      Purchasers in the proportions set out in the Acceptance Notice and the
      Board is irrevocably authorized by BEE SPV to utilize any of the stock
      powers or the transfer secretary direction letter, signed by the BEE SPV in accordance with clause
  4.1.4, to effect such transfer.

21 

	11.6.3 	
      the Forced Sale Price shall be payable within 30 (thirty)
      days of the transfer having been effected.

	11.7 	
      In the event that the BEE Shares are purchased pursuant
      to the provisions of this clause 11, save pursuant to an event
      contemplated in clause 11.1.8, BEE SPV shall on the date of transfer of
      the BEE Shares fully discharge the entire Outstanding Balance and in this
      regard expressly authorizes each party which has purchased such BEE Shares
      or any portion thereof to pay so much of the Forced Sale Price as is
      necessary to discharge the entire Outstanding Balance plus to satisfy any
      and all South African and United States tax liability which may be
      incurred by the Company or any of its subsidiaries in connection with the
      purchase of the BEE Shares as contemplated in this clause 11.7 (for which
      BEE SPV shall be liable), to NET1, with the excess, if any, to be paid to
      BEE SPV.

	 	 
	11.8 	
      Notwithstanding anything to the contrary herein
      contained, on every occasion that an event contemplated in clause 11.1.8
      occurs:

	11.8.1 	
      The Company shall only be entitled to accept the Deemed
      Forced Offer in respect of and purchase such amount of BEE Shares which
      would raise sufficient proceeds (i) to settle that portion of the Loan
      Amount and Interest as shall be due and owing by the BEE SPV to NET1 at
      the time of the Acceptance Notice; plus (ii) to satisfy any and all South
      African and United States tax liability which may be incurred by the
      Company or any of its subsidiaries in connection with the purchase of the
      BEE Shares pursuant to this clause 11.8; and

	 	 
	11.8.2 	
      BEE SPV expressly authorizes each party which has
      purchased such BEE Shares or any portion thereof to pay so much of the
      Forced Sale Price as is necessary to discharge the payment to NET1 of all
      amounts specified in clause 11.8.1.

	12 	
      BEE COMPLIANCE
CERTIFICATE

	12.1 	
      The Company shall from time to time, and at least once a
      year, be entitled (but not obliged) to require the preparation, issue and
      delivery to the Company of a BEE Compliance
Certificate.

22 

	12.2 	
      Subject to the provisions of clause 18, the BEE Parties
      agree and undertake, at their own cost and expense, to procure such
      preparation, issue and delivery of a BEE Compliance Certificate within 45
      (forty five) days of the Company giving notice to the BEE Shareholders
      requiring the same. The BEE Parties further agree and undertake to
      co-operate fully and without unreasonable delay with the person designated
      from time to time to issue a BEE Compliance Certificate and, in
      particular, agree and undertake to provide such person and its agents and
      employees –

	12.2.1 	
      full and unrestricted access to the directors, officers,
      employees, advisors and auditors, as well as to all records and data
      (whether stored electronically or otherwise and whether in the possession
      of others) of BEE SPV so as to enable such parties to carry out thorough
      and complete investigations in connection with the issue of the applicable
      BEE Compliance Certificate; and

	 	 
	12.2.2 	
      with all information and all documents requested by such
      parties for the purpose of enabling them to carry out thorough and
      complete investigations in connection with the issue of the applicable BEE
      Compliance Certificate.

	12.3 	
      Any dispute in relation to the contents of and/or the
      findings set out in a BEE Compliance Certificate shall be referred to and
      settled by arbitration in accordance with the provisions of clause 22,
      except that such arbitration shall (to the extent possible) be finalised
      within 30 (thirty) days.

	 	 
	12.4 	
      The Company shall be entitled to all information of any
      nature whatsoever relating to the ultimate ownership and shareholding
      structure of BEE SPV and each of the BEE Shareholders so that the Company
      and its advisors are able at any time to ensure that the requirements of
      the BEE Codes are complied with and that the ultimate ownership of BEE SPV
      is transparent and fully justifiable from the point of view of the BEE
      Codes. If at any time there is any change in the shareholding of any of
      the BEE Shareholders (direct or indirect) or in the shareholding of any
      shareholder or ultimate shareholder of any of the BEE Shareholders (direct
      or indirect) then each BEE Shareholder undertakes forthwith upon the
      occurrence of such change to notify the Company thereof in writing. The
      relevant BEE Shareholder shall ensure that no such change will be
      prejudicial to the Company and no such change will have a detrimental
      effect on the BEE status of the Company or of BEE
SPV.

23 

	13 	
      MATTERS RELATING TO US SECURITIES AND COMPETITION
      LAWS

	13.1 	
      Compliance with Securities
Act

	13.1.1 	
      Each of the BEE Parties acknowledges that the Company
      may, in its discretion, elect not to register the sale of the BEE Shares
      in terms of this Agreement under the Securities Act and that if not so
      registered, the sale of the BEE Shares will be made in reliance on an
      exemption from registration contained in Regulation S under the Securities
      Act for offers and sales made outside of the United States.

	 	 
	13.1.2 	
      Each of the BEE Parties represents and warrants that it
      is and at the time that BEE SPV acquires the BEE Shares in terms of this
      Agreement, it will be –

	13.1.2.1 	
      outside the United States;

	 	 
	13.1.2.2 	
      not a US person, as defined in Regulation S;
and

	 	 
	13.1.2.3 	
      not acquiring the BEE Shares on behalf of or for the
      account of or benefit of, a US person.

	13.1.3 	
      Each of the BEE Parties agrees that it will not engage in
      hedging transactions with respect to the BEE Shares.

	 	 
	13.1.4 	
      BEE SPV agrees that it will not offer, sell, pledge,
      transfer or otherwise dispose of any BEE Shares except pursuant to an
      effective registration statement under the Securities Act or in compliance
      with all the requirements of an available exemption from registration
      thereunder (together with an opinion of counsel satisfactory to the
      Company that registration is not required). BEE SPV further acknowledges
      that any BEE Shares which are issued in certificated form may bear a
      legend to the foregoing effect.

	 	 
	13.1.5 	
      The Company may in its sole discretion elect to register
      the sale of the BEE Shares to BEE SPV and/or the resale of some or all of
      the BEE Shares by BEE SPV in terms of this Agreement under the Securities
      Act. If the Company elects to effect such registration, then the BEE
      Parties undertake to provide the Company will all information about the
      BEE Parties that may be required to be included in any prospectus
      supplement relating to such sale or resale and the BEE Parties warrant
      that such information provided to the Company for use in such prospectus
      supplement will be true and correct in all material
  respects.

24 

	13.2 	
      Compliance with Exchange Act

	 	 
		
      The BEE Parties acknowledge that the Company’s common
      stock is registered under the Exchange Act, which provides, among other
      things, that –

	13.2.1 	
      beneficial owners (as defined in the Exchange Act and the
      SEC’s rules thereunder) of more than 5% (five percent) of the Company’s
      outstanding shares of common stock may be required to make filings with
      the SEC pursuant to Regulation 13D/G under the Exchange Act; and

	 	 
	13.2.2 	
      directors, officers and holders of more than 10% (ten
      percent) of the Company’s outstanding shares of common stock must file
      with the SEC ownership and transaction reports pursuant to Section 16(a)
      of the Exchange Act and become subject to the short-swing liability
      provisions of Section 16(b) of the Exchange
Act.

	13.3 	
      Compliance with Competition Laws

	 	 
		
      Each of the BEE Parties acknowledges that it may be
      required to comply with notice and other relevant provisions of the U.S.
      Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the
      "HSR Act") and agrees that it will comply with the applicable
      requirements of the HSR Act prior to any of the BEE Shares being issued to
      the BEE SPV.

	 	 
	13.4 	
      No Reliance on Company regarding U.S.
  Laws

	 	 
		
      Each of the BEE Parties acknowledge that it will seek its
      own legal advice with regard to its compliance with U.S. laws and that it
      is not relying on the Company, its subsidiaries, or its U.S. Counsel for
      such advice.

	14 	
      REPRESENTATIONS AND WARRANTIES OF THE
    COMPANY

	 	 
		
      The Company hereby represents and warrants to BEE SPV as
      follows -

	14.1 	
      Organisation, Good Standing and
    Qualification

	 	 
		
      The Company and each of its subsidiaries has been duly
      incorporated and is validly existing as a corporation under the laws of
      the jurisdiction of its organisation, with the corporate power and
      authority to own its property and conduct its business as it is currently
      conducted. Each of the Company and its subsidiaries is qualified to do
      business as a foreign corporation in each jurisdiction where the conduct
      of its business requires such qualification,
except where the failure to be so qualified would not reasonably
      be expected to have a material adverse effect on the Company and its
  subsidiaries, taken as a whole.

25 

	14.2 	
      Authorisation; Binding Obligations

	 	 
		
      The Company has the corporate power and authority to
      enter into this Agreement and to consummate the transactions contemplated
      hereby and thereby. The execution, delivery and performance of this
      Agreement by the Company have been duly authorised by all necessary
      corporate action. This Agreement is valid and binding obligations of the
      Company enforceable against the Company in accordance with their
      respective terms, except as may be limited by (a) applicable bankruptcy,
      insolvency, reorganisation, moratorium or other laws of general
      application affecting enforcement of creditors’ rights and (b) general
      principles of equity that restrict the availability of equitable
      remedies.

	 	 
	14.3 	
      Validity of BEE Shares

	 	 
		
      The BEE Shares will be validly issued, fully paid and
      non-assessable under the Florida Business Corporation Act.

	 	 
	14.4 	
      Compliance with Instruments and Laws

	 	 
		
      The execution and delivery of this Agreement by the
      Company, and the performance by the Company of its obligations hereunder
      will not result in any violation by the Company of its articles of
      incorporation or any material agreement, law or court order to which the
      Company or its subsidiaries are bound.

	 	 
	14.5 	
      No Material Litigation

	 	 
		
      Except as disclosed in the Company’s periodic reports
      filed with the SEC, neither the Company nor any of its subsidiaries is a
      party to any material legal proceedings which could reasonably be expected
      to have a material adverse effect on the Company and its subsidiaries,
      taken as a whole.

	15 	
      REPRESENTATIONS AND WARRANTIES OF BEE
SPV

	 	 
		
      The BEE Parties hereby represents and warrants to the
      Company as of the date of this Agreement as follows
–

26 

	15.1 	
      Organisation, Good Standing and
    Qualification

	 	 
		
      Each of the BEE Parties has been duly incorporated and is
      validly existing as a corporation under the laws of the Republic of South
      Africa, with the corporate power and authority to own its property and
      conduct its business as it is currently conducted.

	 	 
	15.2 	
      Authorisation, Binding Obligations

	 	 
		
      Each of the BEE Parties has the power and authority to
      enter into this Agreement and to consummate the transactions contemplated
      hereby. The execution, delivery and performance of this Agreement by the
      BEE Parties have been duly authorised by all necessary corporate action.
      This Agreement is a valid and binding obligation of the BEE Parties
      enforceable against the BEE Parties in accordance with its terms, except
      as may be limited by –

	15.2.1 	
      applicable insolvency or other laws of general
      application affecting enforcement of creditors’ rights; and

	 	 
	15.2.2 	
      general principles of equity that restrict the
      availability of equitable remedies.

	15.3 	
      Compliance with Instruments and Laws

	 	 
		
      The execution and delivery of this Agreement by the BEE
      Parties, and the performance by each of the BEE Parties of its obligations
      hereunder will not result in any violation by the BEE Parties of its
      memoranda of incorporation.

	 	 
	15.4 	
      No Material Litigation

	 	 
		
      BEE SPV is not a party to any legal
  proceedings.

	16 	
      CONFIDENTIALITY AND RESTRAINT
  UNDERTAKINGS

	16.1 	
      BEE SPV acknowledges that for so long as it is a
      shareholder in the Company, BEE SPV will be exposed and have access to,
      and will learn of certain Confidential Information.

	 	 
	16.2 	
      The BEE Shareholders acknowledges that for so long as BEE
      SPV is a shareholder in the Company and any of the BEE Shareholders is a
      shareholder of BEE SPV, the BEE Shareholders will be exposed and have
      access to, and will learn of certain Confidential
  Information.

27 

	16.3 	
      Each of the BEE Parties acknowledges further that the
      confidentiality undertakings given by it in terms of this Agreement and
      the restraints imposed on it in terms of this clause 16 are reasonable and
      necessary in order for the Company and its subsidiaries and to protect
      their respective proprietary rights and interests.

	 	 
	16.4 	
      Each of the BEE Parties irrevocably and unconditionally
      agrees and undertakes in favour of the Company
–

	16.4.1 	
      not to use the Confidential Information, whether directly
      or indirectly –

	16.4.1.1 	
      for its own benefit; or

	 	 
	16.4.1.2 	
      for the benefit of any person other than the
    Company;

	16.4.2 	
      to treat and safeguard the Confidential Information as
      strictly private and confidential;

	 	 
	16.4.3 	
      not to use, disclose or divulge, directly or indirectly,
      the Confidential Information in any manner to any third party for any
      reason or purpose whatsoever without the prior written consent of the
      Company, which consent may be granted or withheld in the sole and absolute
      discretion of the Company;

	 	 
	16.4.4 	
      not to decompile, disassemble or reverse engineer or
      otherwise modify, adapt, alter or vary the whole or any part of the
      Confidential Information; and

	 	 
	16.4.5 	
      to take all such steps as may be reasonably necessary to
      prevent Confidential Information from falling into the hands of
      unauthorised third parties and, to the extent that any Confidential
      Information is disclosed to any of its directors, other staff or
      representatives, to ensure that such individuals are familiar with the
      restrictions contained in this Agreement and abides by the terms contained
      in this clause 16.

	16.5 	
      Subject to the provisions of clause 16.8, the
      undertakings given by each of the BEE Parties in clause 16.4 shall not
      apply to any Confidential Information which –

	16.5.1 	
      is or becomes generally available to the public other
      than by the negligence or default of BEE SPV or of the BEE Shareholders or
      by the breach of this clause 16 by the BEE Shareholders or BEE
  SPV;

28 

	16.5.2 	
      has been supplied to the party to whom it is disclosed by
      a third party who is under no obligation to maintain such information in
      confidence; or

	 	 
	16.5.3 	
      is disclosed pursuant to a requirement or request by
      operation of law, to the extent of compliance with such requirement or
      request only and not for any other purpose,

provided that – 

	16.5.4 	
      the onus shall at all times rest on the BEE Shareholders
      or BEE SPV, as the case may be, to establish that such information falls
      within such exclusions;

	 	 
	16.5.5 	
      information shall not be deemed to be within the
      foregoing exclusions merely because such information is embraced by more
      general information in the public domain or in the possession of the BEE
      Shareholders or BEE SPV; and

	 	 
	16.5.6 	
      any combination of features shall not be deemed to be
      within the foregoing exclusions merely because individual features are in
      the public domain or in the possession of the BEE Shareholders or BEE SPV,
      but only if the combination itself is in the public domain or in the
      possession of the BEE Shareholders or BEE SPV.

	16.6 	
      The determination of whether information is Confidential
      Information shall not be affected by whether or not such information is
      subject to, or protected by, common law or statute related to copyright,
      patent, trademarks or otherwise.

	 	 
	16.7 	
      If any of the BEE Parties are uncertain as to whether any
      information is Confidential Information, the BEE Shareholders or BEE SPV,
      as the case may be, shall treat such information as confidential until the
      contrary is agreed in writing by the Company and by the Company.

	 	 
	16.8 	
      In the event that either the BEE Shareholders or BEE SPV
      is required to disclose any Confidential Information pursuant to clause
      16.5.3, it shall -

	16.8.1 	
      notify the Company thereof prior to disclosure, if
      possible;

	 	 
	16.8.2 	
      take all such steps to limit the disclosure to the extent
      that it lawfully and reasonably can, except to the extent that the Company
      waive the taking of any or all such steps;

	 	 
	16.8.3 	
      afford the Company a reasonable opportunity, if possible,
      to intervene in the proceedings;

29 

	16.8.4 	
      comply with the reasonable requests of the Company as to
      the manner and terms of any such disclosure.

	16.9 	
      Each of the BEE Parties hereby undertakes to the Company
      that neither it nor any party which controls it will, either alone or
      jointly or together with any other person –

	16.9.1 	
      directly or indirectly encourage or entice or persuade or
      induce any client or customer of the Company or its subsidiaries to take
      its customers or clientele away from the Company or its subsidiaries, or
      cause or assist in causing any of the foregoing to take place;
    and/or

	 	 
	16.9.2 	
      directly or indirectly discourage or dissuade any person
      from referring or continuing to refer its customers or business to the
      Company or its subsidiaries, or cause or assist in causing any of the
      foregoing to take place.

	16.10 	
      Each of the BEE Parties undertakes to the Company that it
      will not, either alone or jointly or together with any other person, be
      interested or engaged, directly or indirectly, including but not limited
      to being a proprietor, partner, director, shareholder, member of a
      syndicate or close corporation or advisor (in any way) in or with any
      entity which is engaged in any business in direct competition with the
      Business in the Republic of South Africa (the
  "Territory").

	 	 
	16.11 	
      The undertakings given and the restraints imposed on the
      BEE Parties in terms of clauses 16.4 to 16.8.4 shall continue
      indefinitely. The undertakings given and the restraints imposed on the BEE
      Parties in terms of clauses 16.9 and 16.10, shall be subject to clause
      18.

	 	 
	16.12 	
      Each of the undertakings and restrictions in clauses 16.9
      and 16.10 shall be regarded as a distinct and severable covenant, in
      respect of –

	16.12.1 	
      each of the months falling within the period of the
      restraint;

	 	 
	16.12.2 	
      each city and town within the Territory;

	 	 
	16.12.3 	
      each activity falling within the ambit of the Business;
      and

	 	 
	16.12.4 	
      each capacity which the BEE Shareholders or BEE SPV is
      prohibited from holding in terms of this
Agreement.

30 

	16.13 	
      The Company acknowledges that the undertakings and
      restrictions set out above will apply equally to it with regard to any
      confidential information relating to the business of BEE SPV or the
      business of any of the BEE Shareholders to the extent that such
      confidential information comes into the possession of the Company pursuant
      to the implementation of the Transaction
Documents.

	17 	
      ANTI-CORRUPTION CONTROLS AND BUSINESS
    PRACTICES

	17.1 	
      None of the BEE Parties shall, and the BEE Shareholders
      shall procure that BEE SPV does not, do or perform any act which is
      contrary to any laws of the Republic of South Africa or to any applicable
      U.S. laws, including the Foreign Corrupt Practices Act of 1977.

	 	 
	17.2 	
      The BEE Parties warrant and undertake that they have
      instituted and maintained, and will continue to maintain, adequate
      appropriate policies, procedures and controls designed to ensure continued
      compliance with all applicable anti- corruption laws, including the
      Foreign Corrupt Practices Act of 1977.

	 	 
	17.3 	
      Without in any way detracting from any warranties,
      representations and undertakings referred to elsewhere in this Agreement
      but subject to the provisions of clause 18, each of the BEE Parties
      represents, warrants and agrees to the
following:

	17.3.1 	
      Compliance with Anti-Corruption Laws

	 	 
		
      Each of the BEE Parties warrants and represents that it
      nor any of its respective directors, officers, employees, partners, agents
      or other person representing it has made or promised to make or
      transferred, and agrees that none of the foregoing persons will make or
      promise to make or transfer, in connection with the obligations
      contemplated by the Transaction Documents or in connection with any other
      business transactions involving the Company or any of its subsidiaries,
      any payment or anything of value, directly or indirectly
  –

	17.3.1.1 	
      to any officer or employee of a Governmental Body
      (including officers or employees of entities owned or controlled by any
      Government Body) or public international organisations;

	 	 
	17.3.1.2 	
      to any political party, official of a political party or
      candidate;

31 

	17.3.1.3 	
      any other person, under circumstances in which the BEE
      Parties, or their respective directors, officers, employees, partners,
      agents or other person representing it know, or have reason to know, that
      all or any portion of such money or thing of value will be offered or
      given, directly or indirectly, to any of the foregoing, or

	 	 
	17.3.1.4 	
      any person, company, partnership or other legal
      entity;

		
      for the purpose of improperly obtaining, retaining or
      directing business or to secure or obtain any improper business advantage,
      or to seek to induce a person to perform improperly any function which is
      of a public nature, connected with business, undertaken in the course of a
      person's employment, or a function by or on behalf of a body of persons.
      The intention being that no payments or transfers of value shall be made
      which have the purpose or effect of public or commercial bribery,
      acceptance of or acquiescence in extortion, kickbacks or other unlawful or
      improper means of obtaining business.

	 	 
	17.3.2 	
      Government Ownership, Change in Ownership or
      Control

	 	 
		
      Each of the BEE Parties warrants and represents that to
      the best of its knowledge as at the Signature Date, no director of BEE SPV
      and no employee of BEE SPV, or other person who will be involved in
      fulfilling the obligations of the BEE Shareholders and/or BEE SPV under
      the Transaction Documents is a Government Official, political party
      official or candidate, or a Close Family Member of such an official or
      candidate. If, whilst BEE SPV is a shareholder in the Company, there is a
      change in any of the matters or facts warranted or represented in terms of
      this clause 17.3.2, the BEE Parties agree to disclose such change in
      writing to the Company and the Company within 7 (seven) days of the change
      occurring. For the purposes of this clause 17.3.2
–

	17.3.2.1 	
      "Government Official" means any officer or
      employee of any Governmental Body or any department, agency or
      instrumentality thereof, or of any entity which is owned or controlled by
      a Governmental Body, or of any public international
organisation;

	 	 
	17.3.2.2 	
      "Close Family Member" means the individual's
      spouse; the individual's and the spouse's grandparents, parents, siblings,
      children, nieces, nephews, aunts, uncles and first cousins; the spouse of
      any of these people; and any other individuals who share the same
      household with the Government Official.

32 

	17.3.3 	
      FCPA Questionnaire

	 	 
		
      The Company may from time to time request any of the BEE
      Parties to deliver to the Company a FCPA Questionnaire, duly completed by
      such director, officer, trustee, member or shareholder of any of the BEE
      Parties or any of its subsidiaries as may be identified by the Company.
      Each of the BEE Parties shall procure that the director, officer, trustee,
      member or shareholder identified by the Company duly completes the FCPA
      Questionnaire and shall deliver the completed FCPA Questionnaire to the
      Company within 14 (fourteen) days of the request. “FCPA Questionnaire”
      means the document attached hereto marked “C”, provided that
      the Company may include such additional information as it may consider
      necessary or relevant from time to time.

	 	 
	17.3.4 	
      Accuracy of Disclosures

	 	 
		
      Each of the BEE Parties represents, warrants and
      undertakes that all material information provided by BEE SPV or by the BEE
      Shareholders to the Company, or to be provided to the Company, is and
      shall be accurate and complete in all material respects, including but not
      limited to any information contained any FCPA Questionnaire procured by
      the BEE Parties.

	18 	
      DURATION OF THE UNDERTAKINGS AND
    RESTRICTIONS

	 	 
		
      The obligations and restrictions placed on the BEE
      Parties, as well as the agreements of and the undertakings and warranties
      given by the BEE Parties, in terms of clauses 9.1, 10, 12, 13.1.2, 16.9,
      16.10 and 17, shall be regarded as having been imposed on or given by
    -

	18.1 	
      each of the BEE Shareholders from the Signature Date and
      throughout any period during which –

	18.1.1 	
      BEE SPV is a shareholder in the Company; and

	 	 
	18.1.2 	
      such BEE Shareholder holds any shares in BEE SPV;
    and

	18.2 	
      BEE SPV with respect to the period from the Signature
      Date until the date that BEE SPV is no longer a shareholder in the Company
      pursuant to the disposal of all shares acquired pursuant to this
      Agreement.

33 

	19 	
      AUDIT

	19.1 	
      Each of the BEE Parties agrees that it will allow the
      Company and/or the Company’s representatives to audit it to determine
      compliance with laws and the terms of the Transaction Documents, which
      shall include, but not be limited to –

	19.1.1 	
      providing within 7 (seven) days of request therefore, all
      necessary information and access necessary for the representatives of the
      Company and/or the Company to audit its books and records with respect to
      –

	19.1.1.1 	
      its ownership; and

	 	 
	19.1.1.2 	
      any of the BEE Parties’ activities related to performance
      under and compliance with any of the Transaction Documents;
  and

	19.1.2 	
      cooperating with Company, its counsel or its designees in
      connection with any existing or future investigation, litigation or
      inquiry by any state, federal, foreign or private entity relating to this
      Agreement and any matter in which BEE Parties was involved or has
      knowledge. In each case, such cooperation includes all assistance that
      Company reasonably requests. Failure to cooperate will be deemed a
      material breach of this Agreement.

	19.2 	
      The rights of the Company and/or of the Company to
      conduct such audits in relation to –

	19.2.1 	
      each of the BEE Shareholders shall continue to apply for
      a period of 5 (five) years after it ceases to be a member of BEE SPV or
      BEE SPV ceases to be a shareholder in the Company, whichever first occurs;
      and

	 	 
	19.2.2 	
      BEE SPV shall continue to apply for a period of 5 (five)
      years after BEE SPV ceases to be shareholder in the
  Company.

	20 	
      CALL OPTION

	20.1 	
      The Company may, at any time after the Issue Date, call
      on the BEE SPV to either: (i) exchange the BEE Shares held by it for the
      Equivalent CPS Shares; or (ii) sell the BEE Shares to the Company at Fair
      Market Value; by giving BEE SPV written notice (“Call
    Notice”).

	 	 
	20.2 	
      Upon receipt of the Call Notice, BEE SPV shall
      immediately transfer the BEE Shares held by it to the Company and the
      Board is irrevocably authorized by BEE SPV to utilize any of the stock
      powers or transfer secretary direction letter,
signed by the BEE SPV in accordance with clause 4.1.4, to effect
  such transfer.

34 

	20.3 	
      Within 30 (thirty) days of the transfer contemplated in
      clause 20.2, the Company shall procure that NET1 issues the Equivalent CPS
      Shares to BEE SPV, in exchange for the BEE Shares so transferred (if
      option 20.1(i) was elected), alternatively, if the BEE SPV elected to
      rather sell its shares to the Company pursuant to clause 20.1(ii), pay the
      proceeds from such sale, less any amount owing to either the Company or
      NET1 by BEE SPV, to BEE SPV.

	 	 
	20.4 	
      In the event of a sale contemplated in clause 20.1(ii),
      the Company is irrevocably authorized to apply set-off of any amount due
      to the Company by SPV against any proceeds from such sale due to BEE SPV
      and to furthermore pay the remaining proceeds (after applying such
      set-off) to NET1 in settlement (partly or fully) of any amount owing by
      BEE SPV to NET1.

	21 	
      BREACH

	21.1 	
      In the event of any of the Parties ("Defaulting
      Party") committing a breach of any of the terms of this Agreement
      prior to the Issue Date and failing to remedy such breach within a period
      of 10 (ten) days after receipt of a written notice from another Party
      ("Aggrieved Party") calling upon the Defaulting Party so to remedy,
      then the Aggrieved Party shall be entitled (in addition to any other
      remedies which may be available to the Aggrieved Party pursuant to any of
      the Transaction Documents), at its sole discretion and without prejudice
      to any of its other rights in law, either to claim specific performance of
      the terms of this Agreement or to cancel this Agreement forthwith and
      without further notice, and in either case to claim and recover damages
      from the Defaulting Party.

	 	 
	21.2 	
      The Parties agree that any costs awarded will be
      recoverable on an attorney-and- own-client scale unless the Court
      specifically determines that such scale shall not apply, in which event
      the costs will be recoverable in accordance with the High Court tariff,
      determined on an attorney-and-client scale.

	 	 
	21.3 	
      No Party shall be entitled to cancel this Agreement for
      breach, after the Issue Date.

	22 	
      DISPUTE RESOLUTION

	22.1 	
      In the event of there being any dispute or difference
      between the Parties arising out of this Agreement, the said dispute or
      difference shall on written demand by either Party be submitted to
      arbitration in Johannesburg in accordance with
the AFSA rules, which arbitration shall be administered by
  AFSA.

35 

	22.2 	
      Should AFSA, as an institution, not be operating at that
      time or not be accepting requests for arbitration for any reason, then the
      arbitration shall be conducted in accordance with the AFSA rules for
      commercial arbitration (as last applied by AFSA) before an arbitrator
      appointed by agreement between the parties to the dispute or failing
      agreement within 10 (ten) business days of the demand for arbitration,
      then any party to the dispute shall be entitled to forthwith call upon the
      chairperson of the Johannesburg Bar Council to nominate the arbitrator,
      provided that the person so nominated shall be an advocate of not less
      than 10 (ten) years standing as such. The person so nominated shall be the
      duly appointed arbitrator in respect of the dispute. In the event of the
      attorneys of the parties to the dispute failing to agree on any matter
      relating to the administration of the arbitration, such matter shall be
      referred to and decided by the arbitrator whose decision shall be final
      and binding on the parties to the dispute.

	 	 
	22.3 	
      Any party to the arbitration may appeal the decision of
      the arbitrator or arbitrators in terms of the AFSA rules for commercial
      arbitration.

	 	 
	22.4 	
      Nothing herein contained shall be deemed to prevent or
      prohibit a party to the arbitration from applying to the appropriate court
      for urgent relief or for judgment in relation to a liquidated
  claim.

	 	 
	22.5 	
      Any arbitration in terms of this clause 22 (including any
      appeal proceedings) shall be conducted in camera and the Parties
      shall treat as confidential details of the dispute submitted to
      arbitration, the conduct of the arbitration proceedings and the outcome of
      the arbitration.

	 	 
	22.6 	
      This clause 22 will continue to be binding on the Parties
      notwithstanding any termination or cancellation of the
Agreement.

	 	 
	22.7 	
      The Parties agree that the written demand by a party to
      the dispute in terms of clause 22.1 that the dispute or difference be
      submitted to arbitration, is to be deemed to be a legal process for the
      purpose of interrupting extinctive prescription in terms of the
      Prescription Act, 1969.

	23 	
      NOTICES AND DOMICILIA

	23.1 	
      The Parties select as their respective domicilia
      citandi et executandi the following physical addresses, and for the
      purposes of giving or sending any notice provided for or required under
  this Agreement, the said physical addresses as well as the following telefax numbers - 

36 

	Name 	Physical Address 	Telefax 
	  	  	  
	The Company and 	4th Floor, President Place 	011 880 7080 
	NET1 	  	  
	  	Cnr Jan Smuts Avenue and 	  
	  	Bolton Road 	  
	  	Rosebank 	  

 

	Marked for the attention of: Herman
      Kotzé  	 	 
	 	 	 
	Name 	Physical Address 	Telefax 
	  	  	  
	BEE SPV 	37 Wantage Road 	086 721 4936 
	  	Parkwood 	  
	  	2196 	  

 

	
      Marked for the attention of: Khomotso Brian Mosehla
    
	 	 
	 	 	 
	Name 	Physical Address 	Telefax 
	  	  	  
	Mosomo 	37 Wantage Road 	086 721 4936 
	  	Parkwood 	  
	  	2196 	  

		
      Marked for the attention of: Khomotso Brian
  Mosehla

	 	 
		
      provided that a Party may change its domicilium or
      its address for the purposes of notices to any other physical address or
      telefax number by written notice to the other Party to that effect. Such
      change of address will be effective 5 (five) business days after receipt
      of the notice of the change.

	 	 
	23.2 	
      All notices to be given in terms of this Agreement will
      be given in writing and will -

	23.2.1 	
      be delivered by hand or sent by telefax, and not by way
      of email;

	 	 
	23.2.2 	
      if delivered by hand during business hours, be presumed
      to have been received on the date of delivery. Any notice delivered after
      business hours or on a day which is not a business day will be presumed to
      have been received on the following business day; and

	 	 
	23.2.3 	
      if sent by telefax during business hours, be presumed to
      have been received on the date of successful transmission of the telefax.
      Any telefax sent after business hours or on a day which is not a business
      day will be presumed to have been received on the following business
      day.

37 

	23.3 	
      Notwithstanding the above, any notice given in writing,
      and actually received by the Party to whom the notice is addressed, will
      be deemed to have been properly given and received, notwithstanding that
      such notice has not been given in accordance with this clause
  23.

	24 	
      APPLICABLE LAW AND
JURISDICTION

	24.1 	
      This Agreement will in all respects be governed by and
      construed under the laws of the Republic of South Africa.

	 	 
	24.2 	
      Subject to clause 22, the Parties hereby consent and
      submit to the non-exclusive jurisdiction of the South Gauteng High Court,
      Johannesburg in any dispute arising from or in connection with the
      Transaction Documents.

	25 	
      UNDERTAKINGS BY THE
PARTIES

	25.1 	
      The Parties shall at all times during the continuance of
      this Agreement observe the principles of good faith towards one another in
      the performance of their obligations in terms of this Agreement. This
      implies, without limiting the generality of the aforegoing, that they
      shall –

	25.1.1 	
      at all times during the term of this Agreement act
      reasonably, honestly and in good faith;

	 	 
	25.1.2 	
      perform their obligations arising from this Agreement
      diligently and with reasonable care;

	 	 
	25.1.3 	
      make full disclosure to each other of any matter that may
      affect the execution or implementation of this
Agreement.

	25.2 	
      It is recognised that the continued growth of the Company
      will be for the benefit of all BEE Shareholders and accordingly the BEE
      Shareholders undertake at all times to act in the best interests of the
      Company and in good faith to one another and to BEE SPV and at all times
      to use their best endeavours to advance the interests of the Company and
      BEE SPV. In particular, each of the BEE Shareholders undertakes not
      directly or indirectly, whether alone or jointly with any third party, to
      carry out any activity or undertaking of whatsoever nature or kind which
      directly competes with the Business.

	 	 
	25.3 	
      Each of the BEE Parties undertake at all times to do all
      such things, perform all such actions and take all such steps (including
      in particular the exercise of their respective voting rights in BEE SPV
      and the Company) and to procure the doing of all such things, the performance of all such actions
      and the taking of all such steps as may be open to them and necessary for
      or incidental to the putting into effect and maintenance of the terms,
  conditions and import of this Agreement.

38 

	25.4 	
      The undertakings given in this clause 25 shall apply to
      each BEE Shareholder for so long as that BEE Shareholder remains a
      shareholder and for a period of 1 (one) year thereafter.

	 	 
	25.5 	
      The undertakings contained in this clause 25 are for the
      benefit of the Company and BEE SPV.

	26 	
      INDEPENDENT ADVICE

	 	 
		
      Each of the Parties to this Agreement hereby acknowledges
      and agrees that –

	26.1 	
      it has been free to secure independent legal and other
      professional advice (including financial and taxation advice) as to the
      nature and effect of all of the provisions of this Agreement and that it
      has either taken such independent advice or has dispensed with the
      necessity of doing so; and

	 	 
	26.2 	
      all of the provisions of this Agreement and the
      restrictions herein contained are fair and reasonable in all the
      circumstances and are in accordance with the Party’s
  intentions.

	27 	
      GENERAL

	27.1 	
      Whole Agreement

	27.1.1 	
      The Transaction Documents constitute the whole of the
      agreement between the Parties relating to the matters dealt with herein
      and, save to the extent otherwise provided herein, no undertaking,
      representation, term or condition relating to the subject matter of the
      Transaction Documents not incorporated in the Transaction Documents shall
      be binding on either of the Parties.

	27.2 	
      Variations to be in Writing

	 	 
		
      No addition to or variation, deletion, or agreed
      cancellation of all or any clauses or provisions of this Agreement will be
      of any force or effect unless in writing and signed by the
  Parties.

39 

	27.3 	
      No Indulgences

	 	 
		
      No latitude, extension of time or other indulgence which
      may be given or allowed by any Party to the other Party in respect of the
      performance of any obligation hereunder, and no delay or forbearance in
      the enforcement of any right of any Party arising from this Agreement and
      no single or partial exercise of any right by any Party under this
      Agreement, shall in any circumstances be construed to be an implied
      consent or election by such Party or operate as a waiver or a novation of
      or otherwise affect any of the Party's rights in terms of or arising from
      this Agreement or estop or preclude any such Party from enforcing at any
      time and without notice, strict and punctual compliance with each and
      every provision or term hereof. Failure or delay on the part of any Party
      in exercising any right, power or privilege under this Agreement will not
      constitute or be deemed to be a waiver thereof, nor will 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.

	 	 
	27.4 	
      No Waiver or Suspension of Rights

	 	 
		
      No waiver, suspension or postponement by any Party of any
      right arising out of or in connection with this Agreement shall be of any
      force or effect unless in writing and signed by such Party. Any such
      waiver, suspension or postponement will be effective only in the specific
      instance and for the purpose given.

	 	 
	27.5 	
      Provisions Severable

	27.5.1 	
      All provisions and the various clauses of this Agreement
      are, notwithstanding the manner in which they have been grouped together
      or linked grammatically, severable from each other. Any provision or
      clause of this Agreement which is or becomes unenforceable in any
      jurisdiction, whether due to voidness, invalidity, illegality,
      unlawfulness or for any other reason whatever, shall, in such jurisdiction
      only and only to the extent that it is so unenforceable, be treated as
      pro non scripto and the remaining provisions and clauses of this
      Agreement shall remain of full force and effect. The Parties declare that
      it is their intention that this Agreement would be executed without such
      unenforceable provision if they were aware of such unenforceability at the
      time of execution hereof.

40 

	27.5.2 	
      Without effecting the generality of the provisions
      contained in clause 27.5.1, should any court of competent jurisdiction or
      an arbitrator appointed in accordance with clause 22 find that the
      provision contained in clause 11.2.1 is void, invalid, illegal or
      unlawful, then and in such event the Forced Sale Price shall be the Fair
      Market Value in relation to a sale triggered by any event contemplated in
      clause 11.1.1 to 11.1.7

	27.6 	
      Continuing Effectiveness of Certain
    Provisions

	 	 
		
      The expiration or termination of this Agreement shall not
      affect such of the provisions of this Agreement as expressly provided 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.

	 	 
	27.7 	
      No Assignment

	 	 
		
      Neither this Agreement nor any part, share or interest
      herein nor any rights or obligations hereunder may be ceded, delegated or
      assigned by either Party without the prior signed written consent of the
      other Party, save as otherwise provided herein.

	 	 
	27.8 	
      Exclusion of Electronic Signature

	 	 
		
      The reference in clauses 27.2, 27.4 and 27.7 to writing
      signed by a Party shall, notwithstanding anything to the contrary in this
      Agreement, be read and construed as excluding any form of electronic
      signature.

	28 	
      COSTS

	28.1 	
      Except as otherwise specifically provided herein, each
      Party will bear and pay its own legal costs and expenses of and incidental
      to the negotiation, drafting, preparation and implementation of the
      Transaction Documents. The BEE Parties shall be liable to the Company and
      NET1 for any legal fees incurred by either of them in enforcing the terms
      of this Agreement as well as any cost incurred by either the Company or
      NET1 to effect any transfer of shares contemplated in this
    Agreement.

	 	 
	28.2 	
      BEE SPV shall reimburse NET1 and/or the Company, on
      demand, for any cost incurred by either in relation to a sale of BEE
      Shares pursuant to an Offer (as defined in clause 7.4.1) or a Trigger
      Event, or a sale or exchange contemplated in clause 20 (including but not
limited to brokerage fees), and NET1 and the Company are authorized to apply set-off against any amounts due and owing by either to BEE SPV as a result of the aforementioned sale, exchange or otherwise.

41 

	29 	
      PUBLICITY

	 	 
		
      Any and all press releases, announcements or other
      publicity pertaining to the transactions related to the Transaction
      Documents will be in mutually agreed form (which may be joint form),
      provided it does not adversely impact or delay any of the Company’s US
      securities law filings or other required disclosures, and released to
      mutually agreed wire services or other media.

	 	 
	30 	
      MATERIAL NON-PUBLIC INFORMATION

	 	 
		
      Each of the BEE Parties acknowledges that the United
      States and South African securities laws prohibit persons who have
      material, non-public information concerning the Company or its
      subsidiaries from purchasing or selling securities of the Company or from
      communicating such information to any person under circumstances in which
      it is reasonably foreseeable that such person is likely to purchase or
      sell such securities in reliance upon such information. The BEE Parties
      further acknowledge that they may receive such material, non-public
      information concerning the Company and its subsidiaries.

	 	 
	31 	
      STANDSTILL

	 	 
		
      Each of the BEE Parties agree that so long as BEE SPV
      holds any BEE Shares, unless specifically permitted in writing by the
      Company, neither BEE SPV or the BEE Shareholders nor any entity or person
      which is controlled (as defined in Rule 12b-2 under the Exchange Act)
      directly or indirectly by either BEE SPV or the BEE Shareholders, or any
      representatives acting on their behalf, will in any manner, directly or
      indirectly:

	31.1 	
      effect or seek, offer or propose (whether publicly or
      otherwise) to effect, or announce any intention to effect or cause or
      participate in or in any way assist, facilitate or encourage any other
      person to effect or seek, offer or propose (whether publicly or otherwise)
      to effect or participate in:

	31.1.1 	
      any acquisition of any assets, indebtedness or businesses
      of the Company or any of its subsidiaries;

	 	 
	31.1.2 	
      any tender or exchange offer, merger or other business
      combination involving the Company, its subsidiaries, or assets of the
      Company;

42 

	31.1.3 	
      any recapitalisation, restructuring, liquidation,
      dissolution or other extraordinary transaction with respect to the
      Company; or

	 	 
	31.1.4 	
      any “solicitation” of "proxies" (as such terms are used
      in the proxy rules of the SEC) or consents to vote any voting securities
      of the Company;

	31.2 	
      form, join or in any way participate in a "group" (as
      defined under the Exchange Act) with third parties with respect to any of
      the matters described in this clause 31 or otherwise act in concert with
      third parties in respect of any of the matters described in this clause
      31;

	 	 
	31.3 	
      otherwise act, alone or in concert with others, to seek
      representation on or to control or influence the management, Board or
      policies of the Company or to obtain representation on the
Board;

	 	 
	31.4 	
      take any action that would or would reasonably be
      expected to force the Company to make a public announcement regarding any
      of the types of matters set forth in 31.1 above; or

	 	 
	31.5 	
      enter into any discussions or arrangements with any third
      party with respect to any of the foregoing. The BEE Parties each also
      agree during such period not to request that the Company or any of its
      subsidiaries or representatives, directly or indirectly, amend or waive
      any provision of this clause 31 (including this
  sentence).

	32 	
      SIGNATURE

	32.1 	
      This Agreement is signed by the Parties on the dates and
      at the places indicated below.

	 	 
	32.2 	
      This Agreement may be executed in counterparts, each of
      which shall be deemed an original, and all of which together shall
      constitute one and the same Agreement as at the date of signature of the
      Party last signing one of the counterparts.

	 	 
	32.3 	
      The persons signing this Agreement in a representative
      capacity warrant their authority to do so.

	 	 
	32.4 	
      The Parties record that it is not required for this
      Agreement to be valid and enforceable that a Party shall initial the pages
      of this Agreement and/or have its signature of this Agreement verified by
      a witness.

43 

SIGNED at Rosebank on December 10, 2013 

	 	For and on behalf of 
	 	NET 1 UEPS TECHNOLOGIES, INC 
	 	  
	 	  
	 	  
	 	/s/
      Serge Belamant 
	 	Signature 
	 	Serge
      C.P. Belamant 
	 	Name of Signatory 
	 	Chief
      Executive Officer 
	 	Designation of Signatory 

SIGNED at Rosebank on December 10, 2013 

	 	For and on behalf of 
	 	NET 1 APPLIED TECHNOLOGIES SOUTH 
	 	AFRICA (PTY) LTD 
	 	  
	 	  
	 	  
	 	/s/
      Serge Belamant 
	 	Signature 
	 	Serge
      C.P. Belamant 
	 	Name of Signatory 
	 	Director 
	 	Designation of Signatory 

SIGNED at Rosebank on December 10, 2013 

	 	For and on behalf of 
	 	BUSINESS VENTURE INVESTMENTS NO 
	 	1567 (PROPRIETARY) LIMITED (RF) 
	 	  
	 	  
	 	  
	 	/s/
      Brian Mosehla 
	 	Signature 
	 	Khomotso Brian Mosehla 
	 	Name of Signatory 
	 	Director 
	 	Designation of Signatory

44 

SIGNED at Rosebank on December 10, 2013 

	 	For and on behalf of 
	 	MOSOMO INVESTMENT HOLDINGS 
	 	(PROPRIETARY) LIMITED 
	 	  
	 	  
	 	  
	 	/s/
      Brian Mosehla 
	 	Signature 
	 	Khomotso Brian Mosehla 
	 	Name of Signatory 
	 	Director 
	 	Designation of Signatory

ANNEXURE A 
TRANSFER SECRETARY DIRECTION LETTER
TEMPLATE 

[Letterhead of Net 1 UEPS Technologies, Inc. To be signed by all
Parties] 

[Date] 

[Link Market Services address information] 

RE: Transfer Restrictions—Certain Shares of Net 1 UEPS
Technologies, Inc. 

Dear Sir/Madam: 

	1. 	
      Please be advised that in terms of a Relationship
      Agreement dated November [•], 2013 (the “Agreement”) by and among
      Net 1 UEPS Technologies, Inc. (the “Company”), Net1 Applied
      Technologies South Africa (Pty) Ltd, Business Venture Investments No 1567
      (Proprietary) Limited (RF) (the “Shareholder”) and Mosomo
      Investment Holdings (Proprietary) Limited, the Company has issued and sold
      to Shareholder 4,100,000 shares of its common stock, par value $0.001 per
      share (the “Agreement Shares”).

	 	 
	2. 	
      The Agreement Shares will be issued in certificated form
      (either as one certificate or as a number of certificates representing the
      aggregate number of Agreement Shares, at the Company’s direction). Each of
      the certificates representing the Agreement shares will bear a legend
      stating as follows:

  
    
      “The shares represented by this certificate are subject to
        restrictions on transfer contained in the Relationship Agreement dated November
        [•], 2013 by and among Net 1 UEPS Technologies, Inc., Net1 Applied
          Technologies South Africa (Pty) Ltd, Business Venture Investments No 1567
        (Proprietary) Limited (RF) and Mosomo Investment Holdings (Proprietary)
        Limited, and may only be transferred as explicitly provided in the
          Relationship Agreement, a copy of which is on file at the offices of Net 1 UEPS
          Technologies, Inc.” 

    

  

	3. 	
      The Agreement Shares will be registered in the name of
      the Shareholder and will be included on the South African Branch Register
      of the Company.

	
4. 		
This letter is being provided to you in your capacity as Transfer Secretary for the Company’s common stock included on the South African Branch Register, in order to effectuate certain provisions of the Agreement, including
certain transfer restrictions relating to the Agreement Shares.

	
	 	 
	
5. 		
The Company hereby directs you to refuse any and all requests by any person to register the transfer of any of the Agreement Shares, or to remove the restrictive legend referenced in paragraph 2 above, unless such request is
contained in the form of a written request signed by an officer of the Company and delivered to you.

	
	 	 
	
6. 		
The Company may, on one or more occasions, direct you to transfer all or a portion of the Agreement Shares to the Company or to another person as may be designated by the Company. Upon your receipt of such a written request signed
by the Company, together with the delivery to you of one or more stock certificates representing at least the number of Agreement Shares to be transferred (together with executed stock powers), you shall register the transfer to the Company or its
designee pursuant to the Company’s direction. It is specifically recorded that no consent of the Shareholder or of any person other than the Company shall be required to affect such registration of transfer.

	
	 	 
	
7. 		
If a written transfer request in terms of paragraph 6 relates to fewer than all of the Agreement Shares represented by the certificates delivered to you, you shall issue one or more new certificates in the name of the Shareholder
(as directed by the Company) aggregating the balance of the Agreement Shares, which certificate(s) shall include the legend referenced in paragraph 2.

	
	 	 
	
8. 		
The directions contained in this letter shall become effective immediately and shall remain in full force and effect until you receive a written instruction signed by the Company to the effect that some or all of the directions
contained herein are no longer applicable.

	
	 	 
	
9. 		
By its signature below, the Shareholder hereby irrevocably consents to the directions contained in this letter and agrees that no transfer of the Agreement Shares shall be registered except at the direction of the Company in terms
of this letter.

	
	 	 
	
10. 		
By your signature below, you agree to comply with the directions contained in this letter.

	

ANNEXURE B 
STOCK POWER TEMPLATE

 

IRREVOCABLE STOCK POWER 

FOR VALUE RECEIVED, the undersigned does hereby sell, assign
and transfer to ___________________ ___________ shares of the common stock, par
value $.001 per share, of Net 1 UEPS Technologies, Inc. (the
“Corporation”) represented by certificate no. __________ in the
name of the undersigned that was acquired by the undersigned on the books of the
Corporation. The undersigned does hereby irrevocably constitute and appoint
Herman G. Kotze as its attorney-in-fact to transfer such shares of the
Corporation, with full power of substitution in the premises. 

Dated:_____________, ____ 

By:_________________________________

Name:  
______________________________
 
Title:
________________________________

ANNEXURE C 
FCPA QUESTIONNAIRE 

APPENDIX II 
Third Party Questionnaire 

Instructions: Please provide answers to and information
regarding all of the questions below. For any answer requiring more space than
is given in this questionnaire, please attach the complete answer on a separate
sheet of paper. Please attach all requested additional documents to this
completed response. 

	I. 	
      Identifying
Information

	1. 	
      Name of Company or Individual:
      ______________________________________

	 	 
	2. 	
      Business Address (principal place of business and address
      for purposes of communications with the Company if different from the
      principal place of business):

	 	 
		
       

	 	 
	3. 	
      Telephone : ________________

	 	 
	4. 	
      Facsimile:    
  ________________

	 	 
	5. 	
      Telex:           
      ________________

	 	 
	6. 	
      E-Mail:          ________________

	II. 	
      Business
Information

	1. 	
      Please provide a copy of your commercial registration
      and/or incorporation charter documents for the country in which you are
      incorporated and in the country of intended activity.

	 	
       

	2. 	
      Number of employees (please attach a copy of your company
      organizational chart) :__

	 	
       

	3. 	
      Your principal lines of business, including but not
      limited to, your current client list and current products being
      represented (please attach any available public reports):

	 	 
	 	 
	 	 
		
       

	4. 	
      Other locations of your business:
      ______________________________________

	 	 
	5. 	
      Approximate turnover/revenue in the last five years
      (check as appropriate):

____                  
less than $1 million (U.S.); 

____                  
$1 to $10 million (U.S.); 

____                  
$10 to $50 million (U.S.); 

____                  
over $50 million (U.S.) 

	6. 	
      If a new venture, estimated turnover/revenue for next
      business year: _________

	 	 
	7. 	
      Has your company or any of its principal officers,
      directors, or shareholders ever been charged with a criminal offense? If
      so, provide details. ___________

	 	 
	 	 
	 	 

	Ill. 	Ownership and
      Management 

	1. 	
      Are you publicly held? ____ Yes; ____
  No.

	 	1a. 	If yes, what
      percent? _____

	 	1b. 	
      If yes, please attach a copy of your most recent public
      filing showing the company's shareholders, partners, or owners. If this
      filing does not list major (>5%) shareholders, please identify the
      major shareholders (public and non- public). 

	 	 	 
	 	 	 
	 	 	 

	IV. 	
      Government
Relationships

	1. 	
      Are any persons identified in response to any subpart of
      Section Ill:

	 	1a. 	Current officials of any
      government, including any government ministry, agency or government-owned
      or controlled enterprise (yes or no)? ______
	 	 	 
	 	1b. 	Current officials of any
      political party? _________________
	 	 	 
	 	1c. 	Close relatives of
      either (a) or (b)? _________________
	 	 	 
	 	1d. 	Past officials of any government
      agency, enterprise, or political party? _____
	 	 	 
	 	1e. 	
      Involved in any business relationship, including acting
      as an agent or consultant for, or holding common ownership of any business
      enterprise or partnership with any current official (or close family
      member) of the government, including any government ministry, agency or
      government-owned or controlled enterprise? 

	 	 	 

	2. 	
      lf the answer to any of 1a through 1c is yes, provide
      details, including:

	 	2a. 	Full name of government, company, or party
      position: 
	 	 	 
	 	 	 
	 	 	 
	 	2b. 	Official Responsibilities:
      ________________________________________________________________________
	 	 	 
	 	2c. 	Dates of service (current or past):
      _________________________________________________________________
	 	 	 
	 	2d. 	For relatives identified in Section Ill, state
      the relationship: 
	 	 	 

	 	2e. 	For common business interest, state
the type of business relationship, including the name of any enterprise or
partnership, and the nature of any agency agreement: _____

	V. 	
      References

	1. 	
      Commercial references. Please provide at least 3
      references, and if possible, include contact name and telephone/facsimile
      information:

1a._________________________________________________________________

1b._________________________________________________________________

1c.__________________________________________________________________

1d._________________________________________________________________

	2. 	
      Bank reference: Please provide documentation evidencing
      the existence of one or more business accounts, and the length of time
      that you have had at least one account.

	 	 
	 	 
	 	 

	VI. 	
      Certification

	 	 
		
      The undersigned, being duly authorized to respond to this
      questionnaire, and to certify as to the matters set forth below, hereby
      certifies as follows :

	1. 	
      To the best of my knowledge, all information set forth in
      this response is correct and complete; and

	 	 
	2. 	
      If the company represented by the undersigned enters an
      agreement with you the undersigned covenants and agrees that the company
      and its representatives will not offer, pay or promise to pay, anything of
      value to a "foreign official" (as defined below) in connection with any
      business covered by the agreement. "Foreign official" means and includes:
      (a) any official or employee of any government agency or government-owned
      or controlled enterprise; (b) any candidate for political office; or (c)
      any political party.

	 	Signed:
      ____________________________________________________________________ 
      Dated: _______________________
	 	                                                                              
      [Name and Title]Net 1 UEPS Technologies, Inc. - Exhibit 10.26 - Filed by newsfilecorp.com

RELATIONSHIP AGREEMENT 

 

between 

 

NET 1 UEPS TECHNOLOGIES, INC 

 

and 

 

NET1 APPLIED TECHNOLOGIES SOUTH AFRICA (PROPRIETARY) LIMITED

 

and 

 

BORN FREE INVESTMENTS 272 (PTY) LTD 

 

and 

 

MAZWI YAKO 

ii 

TABLE OF CONTENTS 

	1
      	PARTIES
      	1
      
	 	 	 
	2
      	INTERPRETATION
      	1
      
	 	 	 
	3
      	INTRODUCTION
      	11
      
	 	 	 
	4
      	CONDITIONS
      PRECEDENT 	12
      
	 	 	 
	5
      	SUBSCRIPTION
      	13
      
	 	 	 
	6
      	LOAN
      	13
      
	 	 	 
	7
      	TRANSFER
      RESTRICTIONS 	14
      
	 	 	 
	8
      	BEE
      CREDENTIALS 	17
      
	 	 	 
	9
      	RING-FENCING
      OF BORN FREE 	18
      
	 	 	 
	10
      	RESTRICTIONS
      ON DISPOSAL OF BORN FREE SHARES 	18
      
	 	 	 
	11
      	FORCED
      SALE PROVISIONS 	18
      
	 	 	 
	12
      	BEE
      COMPLIANCE CERTIFICATE 	21
      
	 	 	 
	13
      	MATTERS
      RELATING TO US SECURITIES AND COMPETITION LAWS 	22
      
	 	 	 
	14
      	REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY 	24
      
	 	 	 
	15
      	REPRESENTATIONS
      AND WARRANTIES OF BORN FREE 	25
      
	 	 	 
	16
      	CONFIDENTIALITY
      AND RESTRAINT UNDERTAKINGS 	26
      
	 	 	 
	17
      	ANTI-CORRUPTION
      CONTROLS AND BUSINESS PRACTICES 	29
      
	 	 	 
	18
      	DURATION
      OF THE UNDERTAKINGS AND RESTRICTIONS 	32
      
	 	 	 
	19
      	AUDIT
      	32
      
	 	 	 
	20
      	CALL
      OPTION 	33
      
	 	 	 
	21
      	BREACH
      	34
      
	 	 	 
	22
      	DISPUTE
      RESOLUTION 	34
      
	 	 	 
	23
      	NOTICES
      AND DOMICILIA 	35
      
	 	 	 
	24
      	APPLICABLE
      LAW AND JURISDICTION 	36
      
	 	 	 
	25
      	UNDERTAKINGS
      BY THE PARTIES 	37
      
	 	 	 
	26
      	INDEPENDENT
      ADVICE 	38
      
	 	 	 
	27
      	GENERAL
      	38
      
	 	 	 
	28
      	COSTS
      	40
      
	 	 	 
	29
      	PUBLICITY
      	40
      
	 	 	 
	30
      	MATERIAL
      NON-PUBLIC INFORMATION 	41
      
	 	 	 
	31
      	STANDSTILL
      	41
      
	 	 	 
	32
      	SIGNATURE
      	42
      

ANNEXURES 

	ANNEXURE
      “A”: TRANSFER SECRETARY DIRECTION LETTER 
	 
	ANNEXURE
      “B”: STOCK POWER 
	 
	ANNEXURE
      “C”: FCPA QUESTIONNAIRE 

	1 	
      PARTIES

	1.1 	
      The Parties to this Agreement are
–

	1.1.1 	
      Net 1 UEPS Technologies, Inc., a Florida
    corporation;

	 	 
	1.1.2 	
      Net1 Applied Technologies South Africa (Proprietary)
      Limited;

	 	 
	1.1.3 	
      Born Free Investments 272 (Proprietary) Limited;
    and

	 	 
	1.1.4 	
      Mazwi Yako.

	1.2 	
      This Agreement supersedes any previous agreements
      concluded between the Parties with the Company, in relation to the
      acquisition of any shares of the Company.

	 	 
	1.3 	
      The Parties agree as set out
below.

	2 	
      INTERPRETATION

	2.1 	
      In this Agreement, unless the context indicates a
      contrary intention, the following words and expressions bear the meanings
      assigned to them and cognate expressions bear corresponding meanings
    –

	2.1.1 	
      "AFSA" means the Arbitration Foundation of
      Southern Africa;

	 	 
	2.1.2 	
      "Agreement" means the agreement contained in this
      document, including all annexures hereto;

	 	 
	2.1.3 	
      "BEE Act" means the Broad-Based Black Economic
      Empowerment Act, No 53 of 2003 as amended from time to time;

	 	 
	2.1.4 	
      "BEE Codes" means the Codes of Good Practice on
      Broad-Based Black Economic Empowerment, published under section 9(1) of
      the BEE Act, in Government Gazette No 29617 on 9 February 2007 as amended
      from time to time;

	 	 
	2.1.5 	
      "BEE Compliance Certificate" means, at any time, a
      certificate issued by such person as is designated from time to time for
      such purpose by the Company by way of notice to the BEE Shareholders,
      certifying (at the relevant time) whether or not any of the warranties,
      representations and undertakings referred to in clauses 8.1.1.1 to 8.1.1.2
      (inclusive) have been or are being breached in any way, and confirming the
  status of the relevant entity, as contemplated in clause 8.1.1.3;

2 

	2.1.6 	
      “BEE Parties” means BORN FREE and the BEE
      Shareholders;

	 	 
	2.1.7 	
      "BEE Shareholders" means Mazwi Yako and such other
      persons or entities as may become holders of shares in the issued share
      capital of BORN FREE at any time in the future;

	 	 
	2.1.8 	
      "BEE Shares" means 300,000 (three hundred
      thousand) shares of the Company’s common stock, par value $.001 per
      share;

	 	 
	2.1.9 	
      "BORN FREE" means Born Free Investments 272 (Pty)
      Limited (Registration Number: 2004/032096/07), a limited liability private
      company duly incorporated in accordance with the laws of the Republic of
      South Africa;

	 	 
	2.1.10 	
      "Black Company" means
–

	2.1.10.1 	
      with reference to BORN FREE being a Black Company, BORN
      FREE being a company in respect of which Black People
–

	2.1.10.1.1 	
      have the ability to control, on a modified flow-through
      basis (as such term is contemplated in the BEE Codes), 100% (one hundred
      percent) of all voting rights which are exercisable by the shareholders of
      BORN FREE in general meeting or otherwise; and

	 	 
	2.1.10.1.2 	
      are entitled to 100% (one hundred percent) of the
      economic interest which may be distributed to the shareholders of BORN
      FREE from time to time by virtue of their shareholding in BORN FREE,
      measured on a modified flow-through basis (as such term is contemplated in
      the BEE Codes);

	2.1.10.2 	
      with reference to any other company being a Black
      Company, such company being a company in respect of which Black People
      –

	2.1.10.2.1 	
      have the ability to control, on a flow-through basis (as
      such term is contemplated in the BEE Codes), in excess of 50% (fifty
      percent) of all voting rights which are exercisable by the shareholders of
      such company in general meeting or otherwise; and

	 	 
	2.1.10.2.2 	
      are entitled to more than 50% (fifty percent) of the
      economic interest which may be distributed to the shareholders of such
      company from time to time by virtue of their shareholding in such company,
measured on a flow-through basis (as such term is contemplated in the BEE Codes);

3 

	2.1.11 	
      "Black Entity" means –

	2.1.11.1 	
      a Black Company; and

	 	 
	2.1.11.2 	
      any other corporation or other entity in respect of which
      Black People –

	2.1.11.2.1 	
      have the ability to control, on a flow-through basis (as
      such term is contemplated in the BEE Codes), in excess of 50% (fifty
      percent) of all voting rights which are exercisable by any one or more
      persons in respect of the direction of the management or policies of such
      Entity; and

	 	 
	2.1.11.2.2 	
      are directly or indirectly entitled to more than 50%
      (fifty percent) of the economic interest which may be distributed to the
      members or beneficiaries of such Entity, however described or designated,
      measured on a flow-through basis (as such term is contemplated in the BEE
      Codes);

	2.1.12 	
      "Black People" is as defined in Schedule 1 to the
      BEE Codes, and "Black Person" shall be construed
  accordingly;

	 	 
	2.1.13 	
      "Board" means the board of directors of the
      Company;

	 	 
	2.1.14 	
      "Business" means the business carried on by the
      Company and its subsidiaries from time to time, being the provision of
      payment solutions, transaction processing services and financial services
      across a wide range of industries and in various countries;

	 	 
	2.1.15 	
      “Change of Control” means any transaction or
      series of transactions by which: (i) any “person” or “group”, is or
      becomes the “beneficial owner” (as such terms are defined in the Exchange
      Act and the rules thereunder) of more than 50% (fifty percent) of the
      total voting power of the Company’s common stock then outstanding; or (ii)
      another corporation or other entity merges into the Company or the Company
      consolidates with or merges into any other corporation or other entity
      where any of the outstanding common stock of the Company or such other
      corporation or other entity is converted into or exchanged for cash,
      securities or other property (other than any such transaction where the
      common stock of the Company is converted into or exchanged for voting
      stock of the surviving or transferee person constituting a majority of the
      outstanding shares of such voting stock of such surviving
  or transferee person immediately after giving effect to such
      issuance); or (iii) the Company and its subsidiaries, taken as a whole,
      transfer all or substantially all their assets to any person or group, in
      one transaction or a series of transactions (other than a transfer between
  the Company and a wholly-owned subsidiary of the Company);

4 

	2.1.16 	
      "Company" means Net 1 UEPS Technologies, Inc., a
      Florida corporation;

	 	 
	2.1.17 	
      "Conditions Precedent" means the suspensive
      conditions set out in clause 4;

	 	 
	2.1.18 	
      "Confidential Information" means any information
      or data relating to the Company or any of its subsidiaries or to the
      Business (even if not marked as being confidential, restricted, secret,
      proprietary or any similar designation), in whatever format and whether
      recorded or not (and if recorded, whether recorded in writing, on any
      electronic medium or otherwise), which –

	2.1.18.1 	
      by its nature or content is identifiable as confidential
      and/or proprietary to the Company or its subsidiaries; or

	 	 
	2.1.18.2 	
      is intended or by its nature or content could reasonably
      be expected to be confidential and/or proprietary to the Company or its
      subsidiaries,

and includes any of the following –

	2.1.18.3 	
      information relating to the Company or its subsidiaries
      or the Business, existing and future strategic objectives and existing and
      future business plans and corporate opportunities;

	 	 
	2.1.18.4 	
      trade secrets;

	 	 
	2.1.18.5 	
      technical information, techniques, know-how, operating
      methods and procedures;

	 	 
	2.1.18.6 	
      details of costs, sources of materials and customer lists
      (whether actual or potential) and other information relating to the
      existing and prospective customers and suppliers of the Company or its
      subsidiaries;

	 	 
	2.1.18.7 	
      pricing, price lists and purchasing policies;

	 	 
	2.1.18.8 	
      computer data, programmes and source
  codes;

5 

	2.1.18.9 	
      information contained in or constituting the hardware or
      software of the Company or its subsidiaries, including third party
      products and associated material;

	 	 
	2.1.18.10 	
      information relating to the Company or its subsidiaries'
      network telecommunications services and facilities;

	 	 
	2.1.18.11 	
      any and all methodologies, formulae and related
      information in developed software and processes and other business of the
      Company or its subsidiaries;

	 	 
	2.1.18.12 	
      products, drawings, designs, plans, functional and
      technical requirements and specifications;

	 	 
	2.1.18.13 	
      Intellectual Property that is proprietary to the Company
      or its subsidiaries or that is proprietary to a third party and in respect
      of which the Company or its subsidiaries has rights of use or
      possession;

	 	 
	2.1.18.14 	
      marketing information of whatsoever nature or kind, other
      than that which is used or distributed by the Company or its subsidiaries
      externally in marketing its services to existing or potential
    clients;

	 	 
	2.1.18.15 	
      financial information of whatsoever nature or
  kind;

	 	 
	2.1.18.16 	
      information relating to any contracts to which the
      Company or any of its subsidiaries is a party; and

	 	 
	2.1.18.17 	
      any information which is not readily available to a
      competitor of the Company or any of its subsidiaries in the ordinary
      course of business;

	2.1.19 	
      “CPS” means Cash Paymaster Services (Pty) Limited
      (Registration Number 1971/007195/07), a limited liability private company
      duly incorporated in accordance with the laws of the Republic of South
      Africa;

	 	 
	2.1.20 	
      "Disposal" and "Dispose" means, in the
      context of a disposal of a BEE Share or a share in BORN FREE
  –

	2.1.20.1 	
      the transfer of all or any rights making up such share to
      any other person for his benefit and/or for the benefit of others, whether
      such transfer is effected pursuant to a sale, exchange, donation,
      distribution in specie or otherwise; or

6 

	2.1.20.2 	
      any other transaction or event whereby such share becomes
      beneficially owned by someone other than the person who was the beneficial
      holder thereof immediately prior to such transaction or event taking
      place; or

	 	 
	2.1.20.3 	
      granting, creating or allowing the encumbrance of such
      share,

	 	 
		
      and "dispose" means to bring about a disposal
      within the meaning of this definition;

	2.1.21 	
      “Equivalent CPS Shares” means a percentage of the
      shareholding in the share capital of CPS, of ordinary shares, calculated
      using the following formula:

	 	 
		
      BS/4,400,000 x 30%

	 	 
		
      With:

	 	 
		
      BS being the amount of BEE Shares held by BORN FREE at
      the time;

	 	 
	2.1.22 	
      “Exchange Act” means the United States Securities
      Exchange Act of 1934, as amended from time to time;

	 	 
	2.1.23 	
      “Fulfillment Date” means the date on which the
      last of the Conditions Precedent are fulfilled or waived, as the case may
      be;

	 	 
	2.1.24 	
      "Fair Market Value" means, in relation to any BEE
      Share, the volume weighted average price of the common stock of the
      Company on the Nasdaq for the 30 (thirty) trading day period immediately
      prior the date of the Offer (as defined in clause 7.4.1), or the
      occurrence of the relevant Trigger Event, or the Call Notice contemplated
      in clause 20.1, as the case may be, converted at the SARB Exchange Rate on
      the date of the Trigger Event, the Offer or the Call Notice
      aforementioned;

	 	 
	2.1.25 	
      "Governmental Body" means any country, any
      national body, any state, province, municipality, or subdivision of any of
      the foregoing, any Governmental department, or any agency, court, entity,
      commission, board, ministry, bureau, locality or authority of any of the
      foregoing, or any quasi-Governmental or private body exercising any
      regulatory, taxing, importing, exporting, or other Governmental or
      quasi-Governmental function;

7 

	2.1.26 	
      "Intellectual Property" means the following in any
      location or jurisdiction worldwide –

	2.1.26.1 	
      all inventions (whether patentable or unpatentable) and
      whether or not reduced to practise), all improvements thereto, and all
      patents, patent applications, and patent disclosures, together with all
      revisions, extensions and re-examinations thereof;

	 	 
	2.1.26.2 	
      all trademarks, service marks, trade dress, logos, trade
      names and corporate names, (including all internet and intranet names,
      addresses and all applications, registrations, and renewals in connection
      therewith;

	 	 
	2.1.26.3 	
      all works capable of copyright, all copyright, and all
      applications, registrations and renewals in connection therewith,
      including drawings;

	 	 
	2.1.26.4 	
      all trade secrets and business information;

	 	 
	2.1.26.5 	
      all computer software (including data and related
      documentation);

	 	 
	2.1.26.6 	
      all other proprietary rights; and

	 	 
	2.1.26.7 	
      all copies and tangible embodiments thereof, in each
      instance in whatever form or medium;

	2.1.27 	
      “Interest” means the interest payable by BORN FREE
      to NET1 in respect of the Loan Amount, calculated at a rate of JIBAR plus
      300 (three hundred) basis points, compounded every 6 (six)
  months;

	 	 
	2.1.28 	
      “Interest Period” means each period of 6 (six)
      months, from 2 January to 1 July and 2 July to 1 January of each calendar
      year. The first interest period shall commence to run on the Payment Date
      to 1 July or 1 January, whichever immediately follows the Payment Date.
      Each Interest Period thereafter shall run from the date immediately
      following the date of expiry of the preceding Interest Period, even if the
      first day of this Interest Period is not a business day;

	 	 
	2.1.29 	
      “Issue Date” means the date on which the BEE
      Shares are issued to BORN FREE pursuant to this Agreement;

	 	 
	2.1.30 	
      “JIBAR” means the Johannesburg Interbank Average
      Rate applicable to the relevant Interest Period;

	 	 
	2.1.31 	
      “JSE” means the stock exchange operated by JSE
      Limited;

8 

	2.1.32 	
      “Loan Amount” means the amount required by BORN
      FREE to purchase and subscribe for the BEE Shares, at the Subscription
      Price, being ZAR 18,000,000 (eighteen million South African
  Rand);

	 	 
	2.1.33 	
      "Lock Up Period" means a period commencing on the
      Issue Date and ending on the date that the Outstanding Balance is repaid
      by BORN FREE to NET1 in full, or 5 (five) years from the Issue Date,
      whichever period ends last;

	 	 
	2.1.34 	
      “NET1” means Net1 Applied Technologies South
      Africa (Pty) Ltd (Registration Number 2002/031446/07) a limited liability
      private company duly incorporated in accordance with the laws of the
      Republic of South Africa;

	 	 
	2.1.35 	
      “Outstanding Balance” means at any date of
      determination, the outstanding balance of the Loan Amount plus all accrued
      and unpaid Interest owing by BORN FREE to NET1;

	 	 
	2.1.36 	
      “Payment Date” means the date on which NET1
      extends the Loan Amount to BORN FREE, which will be used by BORN FREE to
      pay the Company the Subscription Price for the BEE Shares;

	 	 
	2.1.37 	
      "Parties" means the parties to this Agreement as
      set out in clause 1 above, and the term “Party” means any one of
      them, as the context requires;

	 	 
	2.1.38 	
      “SARB Exchange Rate” means on any date, the
      currency exchange rate for the United States Dollar, against the South
      African Rand, published daily by the South African Reserve Bank;

	 	 
	2.1.39 	
      “SEC” means the United States Securities and
      Exchange Commission;

	 	 
	2.1.40 	
      "Securities Act" means the United States
      Securities Act of 1933, as amended;

	 	 
	2.1.41 	
      “Shareholders Agreement” means a shareholders
      agreement between BORN FREE and NET1 governing their relationship in
      relation to CPS and transferring the security and BEE features of this
      Agreement, in relation to the BEE Shares, to the Equivalent CPS Shares, to
      the satisfaction of NET1, which agreement shall only come into force and
      effect in the event of the Company exercising the call option contemplated
      in clause 20;

	 	 
	2.1.42 	
      "Signature Date" means the date of signature of
      this Agreement by the Party last signing;

9 

	2.1.43 	
      “Subscription Price” means 75% (seventy five
      percent) of the price of the common stock of the Company, per share, as
      quoted on the JSE at closing on 6 December 2013, being ZAR 60.00 (sixty
      six South African Rand and thirty seven cents), calculated as follows: ZAR
      80.00 x 75%;

	 	 
	2.1.44 	
      “Target Date” means the first occasion on which
      the common stock of the Company trades at the Target Price on the JSE or
      Nasdaq. The “Target Price” is ZAR120.00 (one hundred and twenty
      South African Rand) and, in respect of trades on the Nasdaq, the trade
      price, in United States Dollars, shall be converted to South African Rand
      at the SARB Exchange Rate for the day on which the transaction occurs, to
      determine whether or not the Target Price has been reached;

	 	 
	2.1.45 	
      "Transaction Documents" means this Agreement and
      any written and signed agreement among the Parties which in whole or in
      part regulates the issuance of any securities to BORN FREE by the Company
      or which relates directly or indirectly to the acquisition, holding,
      cession or disposition of shares in the Company by BORN FREE pursuant to
      this Agreement; and

	 	 
	2.1.46 	
      “Trigger Event” shall bear the meaning assigned to
      it in clause 11.

	2.2 	
      In this Agreement -

	2.2.1 	
      clause headings and the heading of the Agreement are for
      convenience only and are not to be used in its interpretation;

	 	 
	2.2.2 	
      an expression which denotes -

	2.2.2.1 	
      any gender includes the other genders;

	 	 
	2.2.2.2 	
      a natural person includes a juristic person and vice
      versa;

	 	 
	2.2.2.3 	
      the singular includes the plural and vice
      versa;

	 	 
	2.2.2.4 	
      a Party includes a reference to that Party’s successors
      in title and assigns allowed at law; and

	 	 
	2.2.2.5 	
      a reference to a consecutive series of two or more
      clauses is deemed to be inclusive of both the first and last mentioned
      clauses.

	2.3 	
      Any reference in this Agreement to
–

10 

	2.3.1 	
      "business hours" shall be construed as being the
      hours between 08h30 and 17h00 on any business day. Any reference to time
      shall be based upon South African Standard Time;

	 	 
	2.3.2 	
      "days" shall be construed as calendar days unless
      qualified by the word "business", in which instance a "business day" will
      be any day other than a Saturday, Sunday or public holiday as gazetted by
      the government of the Republic of South Africa from time to
time;

	 	 
	2.3.3 	
      "laws" means all constitutions; statutes;
      regulations; by-laws; codes; ordinances; decrees; rules; judicial,
      arbitral, administrative, ministerial, departmental or regulatory
      judgments, orders, decisions, rulings, or awards; policies; voluntary
      restraints; guidelines; directives; compliance notices; abatement notices;
      agreements with, requirements of, or instructions by any Governmental
      Body; and the common law, and “law” shall have a similar meaning
      and

	 	 
	2.3.4 	
      "person" means any person, company, close
      corporation, trust, partnership or other entity whether or not having
      separate legal personality.

	2.4 	
      The words "include" and "including" mean
      "include without limitation" and "including without limitation". The use
      of the words "include" and "including" followed by a
      specific example or examples shall not be construed as limiting the
      meaning of the general wording preceding it.

	 	 
	2.5 	
      Any substantive provision, conferring rights or imposing
      obligations on a Party and appearing in any of the definitions in this
      clause 2 or elsewhere in this Agreement, shall be given effect to as if it
      were a substantive provision in the body of the Agreement.

	 	 
	2.6 	
      Words and expressions defined in any clause shall, unless
      the application of any such word or expression is specifically limited to
      that clause, bear the meaning assigned to such word or expression
      throughout this Agreement.

	 	 
	2.7 	
      Unless otherwise provided, defined terms appearing in
      this Agreement in title case shall be given their meaning as defined,
      while the same terms appearing in lower case shall be interpreted in
      accordance with their plain English meaning.

	 	 
	2.8 	
      A reference to any statutory enactment shall be construed
      as a reference to that enactment as at the Signature Date and as amended
      or substituted from time to time.

11 

	2.9 	
      Unless specifically otherwise provided, any number of
      days prescribed shall be determined by excluding the first and including
      the last day or, where the last day falls on a day that is not a business
      day, the next succeeding business day.

	 	 
	2.10 	
      If the due date for performance of any obligation in
      terms of this Agreement is a day which is not a business day then (unless
      otherwise stipulated) the due date for performance of the relevant
      obligation shall be the immediately preceding business day.

	 	 
	2.11 	
      Where figures are referred to in numerals and in words,
      and there is any conflict between the two, the words shall prevail, unless
      the context indicates a contrary intention.

	 	 
	2.12 	
      The rule of construction that this Agreement shall be
      interpreted against the Party responsible for the drafting of this
      Agreement, shall not apply.

	 	 
	2.13 	
      No provision of this Agreement shall (unless otherwise
      stipulated) constitute a stipulation for the benefit of any person
      (stipulatio alteri) who is not a Party to this Agreement.

	 	 
	2.14 	
      The use of any expression in this Agreement covering a
      process available under South African law, such as winding-up, shall, if
      either of the Parties to this Agreement is subject to the law of any other
      jurisdiction, be construed as including any equivalent or analogous
      proceedings under the law of such other jurisdiction.

	 	 
	2.15 	
      Any reference in this Agreement to "this
      Agreement" or any other agreement or document shall be construed as a
      reference to this Agreement or, as the case may be, such other agreement
      or document, as amended, varied, novated or supplemented from time to
      time.

	 	 
	2.16 	
      In this Agreement the words "clause" or
      "clauses" and "annexure" or "annexures" refer to
      clauses of and annexures to this Agreement.

	3 	
      INTRODUCTION

	3.1 	
      The Company is a Florida corporation and is listed on the
      Nasdaq and on the JSE.

	 	 
	3.2 	
      BORN FREE wishes to acquire shares in the
  Company.

12 

	3.3 	
      The Company is prepared to issue shares to BORN FREE at a
      discount, to facilitate black economic empowerment in the Republic of
      South Africa.

	 	 
	3.4 	
      NET1 will extend a loan to BORN FREE to enable BORN FREE
      to pay the Subscription Price for the BEE Shares and BORN FREE will cede
      the BEE Shares to NET1 as security for the repayment of the loan. The Loan
      Amount will be paid by NET1 to the Company, at the direction of and on
      behalf of BORN FREE. The Company will then immediately make a capital
      contribution to the equity of NET1 in the amount of the loan.

	 	 
	3.5 	
      The BEE Parties have agreed to enter into this Agreement
      in order to bind themselves to certain warranties, representations and
      undertakings to be given by them in favour of the Company and its
      subsidiaries, including NET1.

	 	 
	3.6 	
      The Parties wish to record in writing their agreement in
      respect of the above and matters ancillary
thereto.

	4 	
      CONDITIONS PRECEDENT

	4.1 	
      Save for clauses 1 to 3 and clauses 16 to 32, all of
      which will become effective immediately, this Agreement is subject to the
      fulfilment of the Conditions Precedent that, by not later than the
      31st day of January 2014 or such later date as may be agreed
      between the Parties –

	4.1.1 	
      all regulatory approvals required for the implementation
      of the Transaction Documents have been duly obtained, including all
      approvals required by the exchange control authorities of the South
      African Reserve Bank;

	 	 
	4.1.2 	
      NET1 and BORN FREE conclude the Shareholders
      Agreement;

	 	 
	4.1.3 	
      BORN FREE and NET1 concludes a cession agreement in terms
      of which the BEE Shares are ceded to NET1 in securitatem debiti for
      all amounts due or which may become due to NET1 in terms of this
      Agreement, which cession shall be prepared by NET1 to its satisfaction;
      and

	 	 
	4.1.4 	
      BORN FREE signs a transfer secretary direction letter
      which has also been signed by the Company’s South African register
      transfer secretary and one or more stock powers as shall be requested by
      the Company, in each case for the purpose of enforcing clauses 7, 11, 13
      and 20 (a copy of the direction letter and stock powers to be signed are
      attached hereto marked “A” and “B”,
  respectively).

13 

	4.2 	
      The Parties shall use their reasonable commercial
      endeavours and the Parties will co-operate in good faith to procure the
      fulfilment of the Conditions Precedent as soon as reasonably possible
      after the Signature Date.

	 	 
	4.3 	
      The Conditions Precedent contained in clause 4.1.1 is not
      capable of being waived. The remainder of the Condition Precedents may be
      waived by the Company and NET1 in writing (only), prior to the due date
      for fulfillment.

	 	 
	4.4 	
      Unless all the Conditions Precedent have been fulfilled
      or waived by not later than the date for fulfilment thereof set out in
      clause 4.1 (or such later date or dates as may be agreed in writing
      between the Parties) the provisions of this Agreement, save for clauses 1
      to 3, and clauses 16 to 32, which will remain of full force and effect,
      will never become of any force or effect and the status quo ante
      will be restored as near as may be and neither of the Parties will
      have any claim against the other in terms hereof or arising from the
      failure of the Conditions Precedent, save for any claims arising from a
      breach of clause 4.2.

	5 	
      SUBSCRIPTION

	5.1 	
      BORN FREE shall subscribe for and purchase the BEE Shares
      and the Company agrees to sell and issue the BEE Shares to BORN FREE, at
      the Subscription Price.

	 	 
	5.2 	
      All BEE Shares shall be in certificated form, unless the
      Company elects to issue the BEE Shares in book-entry form, and shall be
      registered on the South African branch register of the Company. In the
      event of any sale of any of the BEE Shares on the basis permitted in terms
      of this Agreement, all exchange control requirements of the South African
      Reserve Bank shall be duly complied with.

	 	 
	5.3 	
      The BEE Shares shall be issued to BORN FREE within 60
      (sixty) days of the Payment Date.

	6 	
      LOAN

	6.1 	
      So as to facilitate the subscription for the BEE Shares
      by BORN FREE, as contemplated in this Agreement, NET1 shall lend and
      advance the Loan Amount to BORN FREE. The Loan Amount may not be used for
      any other purpose.

	 	 
	6.2 	
      BORN FREE irrevocably authorizes NET1 to pay the Loan
      Amount directly to the Company in settlement of the Subscription Price.
      Such payment shall be made within 7 (seven) days of the Fulfillment
      Date.

14 

	6.3 	
      Interest shall accrue on the outstanding balance of the
      Loan Amount, from the Payment Date, on a day to day basis and shall be
      serviced by BORN FREE on a bi-annual basis. Accordingly the Interest shall
      be paid by BORN FREE to NET1 on the last business day of each Interest
      Period.

	 	 
	6.4 	
      The Loan Amount shall be repaid by BORN FREE to NET1 as
      follows:

	6.4.1 	
      10% (ten percent) of the Loan Amount (ZAR1,800,000) shall
      be repaid on the first anniversary of the Issue Date;

	 	 
	6.4.2 	
      10% (ten percent) of the Loan Amount (ZAR1,800,000) shall
      be repaid on the second anniversary of the Issue Date;

	 	 
	6.4.3 	
      15% (fifteen percent) of the Loan Amount (ZAR2,700,000)
      shall be repaid on the third anniversary of the Issue Date;

	 	 
	6.4.4 	
      15% (fifteen percent) of the Loan Amount (ZAR2,700,000)
      shall be repaid on the fourth anniversary of the Issue Date; and

	 	 
	6.4.5 	
      the entire Outstanding Balance shall be repaid in full on
      the fifth anniversary of the Issue Date.

	6.5 	
      Notwithstanding anything to the contrary herein
      contained, the total Outstanding Balance will become due and payable by
      BORN FREE to NET1 on the first business day after the Target
  Date.

	7 	
      TRANSFER RESTRICTIONS

	7.1 	
      In addition to the transfer restrictions contained in
      clause 13 related to Securities Act compliance, BORN FREE further agrees
      that it will not during the Lock Up Period, Dispose of in any manner
      (including by way of hedging or derivative transactions or any dividend or
      distribution) any of the BEE Shares that BORN FREE acquires in terms of
      this Agreement, except: (i) for the sole purpose of utilizing the proceeds
      of a Disposal to repay the Outstanding Balance or any portion thereof, in
      which event such Disposal shall be subject to the provisions contained in
      clause 7.2; or (ii) in connection with a Change of Control in accordance
      with clause 7.3; or (iii) pursuant to clause 7.8.

	 	 
	7.2 	
      BORN FREE shall only be entitled to sell such portion of
      the BEE Shares as it needs to in order to pay any amount due in terms of
      this Agreement or which may become due within 2 (two) months of it giving
      the Company notice of such intended Disposal. In such event the provisions
of clauses 7.4.1 to 7.4.4 shall apply to the intended sale. In addition thereto, if the Offer is not accepted by NET1, as contemplated in clause 7.4.4, then and in such event: 

15 

	7.2.1 	
      any sale of BEE Shares to a third party may only be
      concluded if (and such sale shall be subject
to):

	7.2.1.1 	
      BORN FREE instructing the buyer, irrevocably, to pay the
      purchase price payable to it, pursuant to such sale, to NET1;
and

	 	 
	7.2.1.2 	
      the buyer providing NET1 with a guarantee, in favour of
      and suitable to NET1 (in its sole discretion), that the purchase price
      payable to BORN FREE pursuant to the sale shall be paid to NET1, within 30
      (thirty) days of the sale being concluded.

	7.2.2 	
      the proceeds of such sale, received by NET1 from the
      buyer, shall be set-off against the Outstanding Balance and NET1 shall pay
      any remaining amount (after applying such set-off) to BORN
  FREE.

	7.3 	
      In the event that the Board approves a proposed
      transaction which, if consummated would result in a Change of Control,
      BORN FREE shall be entitled to tender its BEE Shares to the offeror (in
      the case of a proposed Change of Control event that involves a tender
      offer), or vote its BEE Shares in favour of the transaction (in the case
      of a proposed Change of Control event that involves a shareholder vote).
      BORN FREE agrees that the documents governing the transaction giving rise
      to the Change of Control shall provide that any amounts that would be
      payable to BORN FREE in respect of the BEE Shares in such transaction
      shall be paid first to NET1 in such an amount as shall be sufficient to
      settle the Outstanding Balance, with any excess payable to BORN
    FREE.

	 	 
	7.4 	
      After the expiration of the Lock Up Period, BORN FREE may
      only Dispose of all or any portion of the BEE Shares in terms of this
      clause 7.4.

	7.4.1 	
      If BORN FREE intends to Dispose of any BEE Shares, then
      at least 30 (thirty) and not more than 60 (sixty) days prior to the date
      of any anticipated Disposal, BORN FREE shall notify the Company in writing
      that it intends to effect such Disposal, stating the amount of proceeds it
      desires to obtain therefrom. The said notice shall be deemed to be an
      irrevocable offer by BORN FREE to sell to the Company such number of BEE
      Shares as would produce the amount of proceeds specified in the notice
      (“Offer”).

16 

	7.4.2 	
      The Offer shall be open for and the Company shall have 30
      (thirty) calendar days from the date it receives such notice to accept the
      Offer and elect to purchase all or a portion of such BEE Shares from BORN
      FREE. If the Company accepts the Offer, BORN FREE shall transfer the
      relevant BEE Shares to the Company within the succeeding 10 (ten) calendar
      days and the Company shall pay the purchase price in respect thereof
      within 30 (thirty) days of such transfer.

	 	 
	7.4.3 	
      The purchase price shall be the Fair Market Value of the
      BEE Shares or such lesser amount as may be agreed between the Company and
      BORN FREE.

	 	 
	7.4.4 	
      If the Offer is not accepted, then and in such event BORN
      FREE shall be entitled to Dispose of the BEE Shares offered within 60
      (sixty) days of expiry of the Offer, provided that it shall not sell the
      said shares on terms better than that on which it was available for
      purchase by the Company pursuant to the Offer. If BORN FREE does not
      conclude the Disposal within 60 (sixty) days, then and in such event the
      provisions of this clause 7.4 shall again have to be complied with before
      any other Disposal may be effected.

	7.5 	
      Any share certificates representing the BEE Shares will
      bear legends reflecting the transfer restrictions imposed by this
      Agreement and the Securities Act.

	 	 
	7.6 	
      Any certificates representing the BEE Shares shall remain
      in the possession of the Company secretary and shall only be released to
      BORN FREE in connection with a Disposal by BORN FREE of some or all of its
      BEE Shares in compliance with the provisions of this Agreement. If BORN
      FREE desires to Dispose of only a portion of its BEE Shares, it shall
      inform the Company as to the number of BEE Shares to be Disposed of and
      the number of BEE Shares to be retained. In order to facilitate the
      Disposal, the Company will cancel the certificates for the BEE Shares then
      owned by BORN FREE and issue one or more new certificates evidencing the
      number of BEE Shares to be Disposed of by BORN FREE and one or more new
      certificates evidencing the number of BEE Shares to be retained by BORN
      FREE.

	 	 
	7.7 	
      BORN FREE shall, as a condition also to the issuance of
      any new certificates, but in any event as may be requested by the Company
      from time to time execute such additional stock powers as the Company
      shall request in order to enable the Company to enforce the provisions of
      clause 11 and 13.1 in respect of BORN FREE’s remaining BEE
  Shares.

17 

	7.8 	
      After repayment of all amounts owing by BORN FREE to NET1
      and the Company pursuant to this Agreement, BORN FREE shall be entitled to
      use the BEE Shares as collateral for any finance required by
  it.

	8 	
      BEE CREDENTIALS

	8.1 	
      The BEE Parties hereby, jointly and severally, warrant,
      represent and undertake to the Company that –

	8.1.1 	
      during the period extending from the Signature Date up to
      and including the day on which BORN FREE ceases to be a shareholder in the
      Company –

	8.1.1.1 	
      BORN FREE's authorised share capital, except to the
      extent that the Company in writing agrees otherwise, will comprise 100
      (one hundred) ordinary shares of R1.00 (one rand) par value;

	 	 
	8.1.1.2 	
      BORN FREE will be a Black Company; and

	 	 
	8.1.1.3 	
      any BEE certificate issued in respect of BORN FREE will
      confirm that BORN FREE is a Level 1 BEE
contributor;

	8.1.2 	
      no person who has any direct or indirect interest in a
      business in direct competition with the Business will, for so long as BORN
      FREE is a shareholder in the Company, without the prior written consent of
      the Company on each occasion, directly or indirectly have any interest of
      whatsoever nature in BORN FREE, including as a holder of any shares,
      regardless of class, or as a holder of debentures, regardless of class, or
      as a holder of any voting rights, or as a lender or provider of any
      funding or as an advisor, consultant, contractor, beneficiary or
      otherwise; and

	 	 
	8.1.3 	
      only persons elected by and as representatives of the BEE
      Shareholders will be directors of BORN FREE, all such directors shall be
      Black People and no person shall be appointed as a director of BORN FREE
      without the prior consent in writing of the
Company.

	8.2 	
      If any event occurs or any circumstance arises which
      constitutes a breach or which is reasonably expected to result in a breach
      of any of the provisions of this clause 8, each of the BEE Parties shall
      immediately give notice thereof to the Company upon becoming aware of such
      event or circumstance. For this purpose, as soon as such event or
      circumstance comes to the knowledge of any director of BORN FREE, BORN
      FREE shall be deemed to have knowledge of the event or circumstance in
      question.

18 

	9 	
      RING-FENCING

	9.1 	
      No person or entity will become a BEE Shareholder until
      such person or entity has signed a deed of adherence in a form acceptable
      to the Company binding itself to the provisions of this Agreement and the
      other Transaction Documents and all such persons will be either Black
      Entities or Black People.

	 	 
	9.2 	
      If any event occurs or any circumstance arises which
      constitutes a breach or which is reasonably expected to result in a breach
      of any provisions of this clause 9, each of the BEE Parties shall
      immediately give notice thereof to the Company upon becoming aware of such
      event or circumstance. For this purpose, as soon as such event or
      circumstance comes to the knowledge of any director of BORN FREE, BORN
      FREE shall be deemed to have knowledge of the event or circumstance in
      question.

	10 	
      RESTRICTIONS ON DISPOSAL OF BORN FREE
  SHARES

	 	 
		
      The BEE Shareholders shall not at any time, subject to
      clause 18, without the prior written consent of the Company (which consent
      may be granted or withheld in the Company’s sole and absolute discretion),
      Dispose of all or any of its shares in or loan claims against BORN
      FREE.

	 	 
	11 	
      FORCED SALE PROVISIONS

	11.1 	
      If a "Trigger Event" (as hereinafter contemplated)
      occurs, all the BEE Shares held by BORN FREE shall be made available for
      sale to the Company and/or to any other person nominated by the Company as
      contemplated in and in the manner set out in the remaining provisions of
      this clause 11. For the purpose of this clause 11, a "Trigger
      Event" shall be deemed to have occurred if any one or more of the
      following events occur and provided, within 60 (sixty) days of the Company
      first becoming aware of such occurrence, the Company gives notice to BORN
      FREE that the provisions of this clause 11 are being invoked (a
      "Trigger Event Notice") –

	11.1.1 	
      BORN FREE or any of the BEE Shareholders breaches any
      provision of any of the Transaction Documents, in any manner other than as
      contemplated in clause 11.1.8;

	 	 
	11.1.2 	
      the common stock of the Company trades at or below R66.37
      (sixty six South African Rand and thirty seven cents) on the JSE or the
      equivalent trading price on Nasdaq, based on the SARB Exchange Rate on
      such date;

19 

	11.1.3 	
      BORN FREE makes or attempts to make or recommends any
      offer of compromise with its creditors generally;

	 	 
	11.1.4 	
      any of the assets of BORN FREE, or any of the issued
      shares or any other economic or voting interest in BORN FREE, are
      subjected to judicial attachment;

	 	 
	11.1.5 	
      BORN FREE commits an act which if committed by a natural
      person, would constitute an act of insolvency in terms of section
      8(c),(d),(g) or (h) of the Insolvency Act, No 24 of 1936;

	 	 
	11.1.6 	
      BORN FREE fails to satisfy any judgment or any
      arbitration award granted or made against it within 7 (seven) days of the
      date on which such judgment or arbitration award is granted or
  made;

	 	 
	11.1.7 	
      BORN FREE is wound up, whether provisionally or finally,
      or a resolution is passed by the board of directors of BORN FREE resolving
      that BORN FREE voluntarily begin business rescue proceedings and be placed
      under supervision in terms of the Act (whether or not such resolution is
      subsequently withdrawn, superseded or set aside), or a court makes an
      order placing BORN FREE under supervision and commencing business rescue
      proceedings in terms of the Act (whether or not such order is subsequently
      set aside); or

	 	 
	11.1.8 	
      BORN FREE fails to pay any amount due and payable to NET1
      in accordance with this Agreement.

	11.2 	
      The consideration payable for the BEE Shares, in the
      event of a sale contemplated in this clause 11 ("Forced Sale
      Price") shall be:

	11.2.1 	
      the Fair Market Value thereof or the Subscription Price,
      whichever is the lower, pursuant to a sale triggered by an event
      contemplated in clauses 11.1.1 to 11.1.7; and

	 	 
	11.2.2 	
      the Fair Market Value pursuant to a sale triggered by an
      event contemplated in clause 11.1.8.

	11.3 	
      Upon the giving of a Trigger Event Notice to it, BORN
      FREE shall be deemed to have made an irrevocable offer to sell the BEE
      Shares at the Forced Sale Price to the Company and/or to any other party
      or parties as nominated by the Company in its discretion ("Deemed
      Forced Offer").

20 

	11.4 	
      The Company shall, if it wishes to accept the Deemed
      Forced Offer, either for its own benefit and/or for the benefit of any
      party or parties so selected by the Company, give notice to that effect to
      BORN FREE within 90 (ninety) days of the giving of the Trigger Event
      Notice ("Acceptance Notice"). The Acceptance Notice shall
  –

	11.4.1 	
      to the extent that the Deemed Forced Offer is accepted on
      behalf of more than 1 (one) party, specify the name of each
  party;

	 	 
	11.4.2 	
      if the Deemed Forced Offer is accepted on behalf of 1
      (one) party only and that party is not the Company, specify the name of
      such party; and

	 	 
	11.4.3 	
      specify the amount of the BEE Shares in respect of which
      the offer is accepted and being purchased by the purchaser, or each
      purchaser, as the case may be.

	11.5 	
      To the extent that the Company accepts the Deemed Forced
      Offer wholly or partially for the benefit of 1 (one) or more parties
      selected by the Company, the Company shall be regarded as acting as an
      agent for such party or parties, and not as a principal and the Company
      shall have no liability to BORN FREE arising out of or in connection with
      the resulting sale or sales.

	 	 
	11.6 	
      Upon acceptance by the Company of the Deemed Forced Offer
      in accordance with the provisions of clause 11.4, whether such acceptance
      is wholly for the benefit of the Company or wholly for the benefit of any
      party selected by the Company or partially for the benefit of the Company
      and/or any one or more of such selected parties ("Forced Sale
      Purchasers") –

	11.6.1 	
      a sale shall automatically come into existence in terms
      of which BORN FREE sells the BEE Shares at the Forced Sale Price to the
      Forced Sale Purchasers in the proportions set out in the Acceptance
      Notice; and

	 	 
	11.6.2 	
      BORN FREE shall be obliged, on delivery to it of the
      Acceptance Notice, to transfer such BEE Shares to the Forced Sale
      Purchasers in the proportions set out in the Acceptance Notice and the
      Board is irrevocably authorized by BORN FREE to utilize any of the stock
      powers or the transfer secretary direction letter, signed by BORN FREE in
      accordance with clause 4.1.4, to effect such transfer.

	 	 
	11.6.3 	
      the Forced Sale Price shall be payable within 30 (thirty)
      days of the transfer having been effected.

21 

	11.7 	
      In the event that the BEE Shares are purchased pursuant
      to the provisions of this clause 11, save pursuant to an event
      contemplated in clause 11.1.8, BORN FREE shall on the date of transfer of
      the BEE Shares fully discharge the entire Outstanding Balance and in this
      regard expressly authorizes each party which has purchased such BEE Shares
      or any portion thereof to pay so much of the Forced Sale Price as is
      necessary to discharge the entire Outstanding Balance plus to satisfy any
      and all South African and United States tax liability which may be
      incurred by the Company or any of its subsidiaries in connection with the
      purchase of the BEE Shares as contemplated in this clause 11.7 (for which
      BORN FREE shall be liable), to NET1, with the excess, if any, to be paid
      to BORN FREE.

	 	 
	11.8 	
      Notwithstanding anything to the contrary herein
      contained, on every occasion that an event contemplated in clause 11.1.8
      occurs:

	11.8.1 	
      The Company shall only be entitled to accept the Deemed
      Forced Offer in respect of and purchase such amount of BEE Shares which
      would raise sufficient proceeds (i) to settle that portion of the Loan
      Amount and Interest as shall be due and owing by BORN FREE to NET1 at the
      time of the Acceptance Notice; plus (ii) to satisfy any and all South
      African and United States tax liability which may be incurred by the
      Company or any of its subsidiaries in connection with the purchase of the
      BEE Shares pursuant to this clause 11.8; and

	 	 
	11.8.2 	
      BORN FREE expressly authorizes each party which has
      purchased such BEE Shares or any portion thereof to pay so much of the
      Forced Sale Price as is necessary to discharge the payment to NET1 of all
      amounts specified in clause 11.8.1.

	12 	
      BEE COMPLIANCE
CERTIFICATE

	12.1 	
      The Company shall from time to time, and at least once a
      year, be entitled (but not obliged) to require the preparation, issue and
      delivery to the Company of a BEE Compliance Certificate.

	 	 
	12.2 	
      Subject to the provisions of clause 18, the BEE Parties
      agree and undertake, at their own cost and expense, to procure such
      preparation, issue and delivery of a BEE Compliance Certificate within 45
      (forty five) days of the Company giving notice to the BEE Shareholders
      requiring the same. The BEE Parties further agree and undertake to
      co-operate fully and without unreasonable delay with
the person designated from time to time to issue a BEE Compliance Certificate and, in particular, agree and undertake to provide such person and its agents and employees - 

22 

	12.2.1 	
      full and unrestricted access to the directors, officers,
      employees, advisors and auditors, as well as to all records and data
      (whether stored electronically or otherwise and whether in the possession
      of others) of BORN FREE so as to enable such parties to carry out thorough
      and complete investigations in connection with the issue of the applicable
      BEE Compliance Certificate; and

	 	 
	12.2.2 	
      with all information and all documents requested by such
      parties for the purpose of enabling them to carry out thorough and
      complete investigations in connection with the issue of the applicable BEE
      Compliance Certificate.

	12.3 	
      Any dispute in relation to the contents of and/or the
      findings set out in a BEE Compliance Certificate shall be referred to and
      settled by arbitration in accordance with the provisions of clause 22,
      except that such arbitration shall (to the extent possible) be finalised
      within 30 (thirty) days.

	 	 
	12.4 	
      The Company shall be entitled to all information of any
      nature whatsoever relating to the ultimate ownership and shareholding
      structure of BORN FREE and each of the BEE Shareholders so that the
      Company and its advisors are able at any time to ensure that the
      requirements of the BEE Codes are complied with and that the ultimate
      ownership of BORN FREE is transparent and fully justifiable from the point
      of view of the BEE Codes. If at any time there is any change in the
      shareholding of any of the BEE Shareholders (direct or indirect) or in the
      shareholding of any shareholder or ultimate shareholder of any of the BEE
      Shareholders (direct or indirect) then each BEE Shareholder undertakes
      forthwith upon the occurrence of such change to notify the Company thereof
      in writing. The relevant BEE Shareholder shall ensure that no such change
      will be prejudicial to the Company and no such change will have a
      detrimental effect on the BEE status of the Company or of BORN
  FREE.

	13 	
      MATTERS RELATING TO US SECURITIES AND COMPETITION
      LAWS

	13.1 	
      Compliance with Securities
Act

	13.1.1 	
      Each of the BEE Parties acknowledges that the Company
      may, in its discretion, elect not to register the sale of the BEE Shares
      in terms of this Agreement under the Securities Act and that if not so
      registered, the sale of the BEE Shares will be made in reliance on an
      exemption from registration contained in Regulation S under the Securities Act for
  offers and sales made outside of the United States.

23 

	13.1.2 	
      Each of the BEE Parties represents and warrants that it
      is and at the time that BEE SPV acquires the BEE Shares in terms of this
      Agreement, it will be –

	13.1.2.1 	
      outside the United States;

	 	 
	13.1.2.2 	
      not a US person, as defined in Regulation S;
and

	 	 
	13.1.2.3 	
      not acquiring the BEE Shares on behalf of or for the
      account of or benefit of, a US person.

	13.1.3 	
      Each of the BEE Parties agrees that it will not engage in
      hedging transactions with respect to the BEE Shares.

	 	 
	13.1.4 	
      BORN FREE agrees that it will not offer, sell, pledge,
      transfer or otherwise dispose of any BEE Shares except pursuant to an
      effective registration statement under the Securities Act or in compliance
      with all the requirements of an available exemption from registration
      thereunder (together with an opinion of counsel satisfactory to the
      Company that registration is not required). BORN FREE further acknowledges
      that any BEE Shares which are issued in certificated form may bear a
      legend to the foregoing effect.

	 	 
	13.1.1 	
      The Company may in its sole discretion elect to register
      the sale of the BEE Shares to BORN FREE and/or the resale of some or all
      of the BEE Shares by BORN FREE in terms of this Agreement under the
      Securities Act. If the Company elects to effect such registration, then
      the BEE Parties undertake to provide the Company will all information
      about the BEE Parties that may be required to be included in any
      prospectus supplement relating to such sale or resale and the BEE Parties
      warrant that such information provided to the Company for use in such
      prospectus supplement will be true and correct in all material
      respects.

	13.2 	
      Compliance with Exchange Act

	 	 
		
      The BEE Parties acknowledge that the Company’s common
      stock is registered under the Exchange Act, which provides, among other
      things, that –

	13.2.1 	
      beneficial owners (as defined in the Exchange Act and the
      SEC’s rules thereunder) of more than 5% (five percent) of the Company’s
      outstanding shares of common stock may be required to make filings with
      the SEC pursuant to Regulation 13D/G under the Exchange Act;
  and

24 

	13.2.2 	
      directors, officers and holders of more than 10% (ten
      percent) of the Company’s outstanding shares of common stock must file
      with the SEC ownership and transaction reports pursuant to Section 16(a)
      of the Exchange Act and become subject to the short-swing liability
      provisions of Section 16(b) of the Exchange
Act.

	13.3 	
      Compliance with Competition Laws

	 	 
		
      Each of the BEE Parties acknowledges that it may be
      required to comply with notice and other relevant provisions of the U.S.
      Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the
      "HSR Act") and agrees that it will comply with the applicable
      requirements of the HSR Act prior to any of the BEE Shares being issued to
      BORN FREE.

	 	 
	13.4 	
      No Reliance on Company regarding U.S.
  Laws

	 	 
		
      Each of the BEE Parties acknowledge that it will seek its
      own legal advice with regard to its compliance with U.S. laws and that it
      is not relying on the Company, its subsidiaries, or its U.S. Counsel for
      such advice.

	14 	
      REPRESENTATIONS AND WARRANTIES OF THE
    COMPANY

	 	 
		
      The Company hereby represents and warrants to BORN FREE
      as follows -

	14.1 	
      Organisation, Good Standing and
    Qualification

	 	 
		
      The Company and each of its subsidiaries has been duly
      incorporated and is validly existing as a corporation under the laws of
      the jurisdiction of its organisation, with the corporate power and
      authority to own its property and conduct its business as it is currently
      conducted. Each of the Company and its subsidiaries is qualified to do
      business as a foreign corporation in each jurisdiction where the conduct
      of its business requires such qualification, except where the failure to
      be so qualified would not reasonably be expected to have a material
      adverse effect on the Company and its subsidiaries, taken as a
    whole.

	 	 
	14.2 	
      Authorisation; Binding Obligations

	 	 
		
      The Company has the corporate power and authority to
      enter into this Agreement and to consummate the transactions contemplated
      hereby and thereby. The execution, delivery and performance of this
      Agreement by the Company have been duly authorised by all necessary corporate action.
      This Agreement is valid and binding obligations of the Company enforceable
      against the Company in accordance with their respective terms, except as
      may be limited by (a) applicable bankruptcy, insolvency, reorganisation,
      moratorium or other laws of general application affecting enforcement of
      creditors’ rights and (b) general principles of equity that restrict the
availability of equitable remedies.

25 

	14.3 	
      Validity of BEE Shares

	 	 
		
      The BEE Shares will be validly issued, fully paid and
      non-assessable under the Florida Business Corporation Act.

	 	 
	14.4 	
      Compliance with Instruments and Laws

	 	 
		
      The execution and delivery of this Agreement by the
      Company, and the performance by the Company of its obligations hereunder
      will not result in any violation by the Company of its articles of
      incorporation or any material agreement, law or court order to which the
      Company or its subsidiaries are bound.

	 	 
	14.5 	
      No Material Litigation

	 	 
		
      Except as disclosed in the Company’s periodic reports
      filed with the SEC, neither the Company nor any of its subsidiaries is a
      party to any material legal proceedings which could reasonably be expected
      to have a material adverse effect on the Company and its subsidiaries,
      taken as a whole.

	15 	
      REPRESENTATIONS AND WARRANTIES OF BORN
  FREE

	 	 
		
      The BEE Parties hereby represents and warrants to the
      Company as of the date of this Agreement as follows
-

	15.1 	
      Organisation, Good Standing and
    Qualification

	 	 
		
      Each of the BEE Parties has been duly incorporated and is
      validly existing as a corporation under the laws of the Republic of South
      Africa, with the corporate power and authority to own its property and
      conduct its business as it is currently conducted.

	 	 
	15.2 	
      Authorisation, Binding Obligations

	 	 
		
      Each of the BEE Parties has the power and authority to
      enter into this Agreement and to consummate the transactions contemplated
hereby. The execution, delivery and performance of this Agreement by the BEE Parties have been duly authorised by all necessary corporate action. This Agreement is a valid and binding obligation of the BEE Parties enforceable against the BEE Parties in accordance with its terms, except as may be limited by - 

26 

	15.2.1 	
      applicable insolvency or other laws of general
      application affecting enforcement of creditors’ rights; and

	 	 
	15.2.2 	
      general principles of equity that restrict the
      availability of equitable remedies.

	15.3 	
      Compliance with Instruments and Laws

	 	 
		
      The execution and delivery of this Agreement by the BEE
      Parties, and the performance by each of the BEE Parties of its obligations
      hereunder will not result in any violation by the BEE Parties of its
      memoranda of incorporation.

	 	 
	15.4 	
      No Material Litigation

	 	 
		
      BORN FREE is not a party to any legal
  proceedings.

	16 	
      CONFIDENTIALITY AND RESTRAINT
  UNDERTAKINGS

	16.1 	
      BORN FREE acknowledges that for so long as it is a
      shareholder in the Company, BORN FREE will be exposed and have access to,
      and will learn of certain Confidential Information.

	 	 
	16.2 	
      The BEE Shareholders acknowledges that for so long as
      BORN FREE is a shareholder in the Company and any of the BEE Shareholders
      is a shareholder of BORN FREE, the BEE Shareholders will be exposed and
      have access to, and will learn of certain Confidential
  Information.

	 	 
	16.3 	
      Each of the BEE Parties acknowledges further that the
      confidentiality undertakings given by it in terms of this Agreement and
      the restraints imposed on it in terms of this clause 16 are reasonable and
      necessary in order for the Company and its subsidiaries and to protect
      their respective proprietary rights and interests.

	 	 
	16.4 	
      Each of the BEE Parties irrevocably and unconditionally
      agrees and undertakes in favour of the Company
–

	16.4.1 	
      not to use the Confidential Information, whether directly
      or indirectly –

	16.4.1.1 	
      for its own benefit; or

27 

	16.4.1.2 	
      for the benefit of any person other than the
    Company;

	16.4.2 	
      to treat and safeguard the Confidential Information as
      strictly private and confidential;

	 	 
	16.4.3 	
      not to use, disclose or divulge, directly or indirectly,
      the Confidential Information in any manner to any third party for any
      reason or purpose whatsoever without the prior written consent of the
      Company, which consent may be granted or withheld in the sole and absolute
      discretion of the Company;

	 	 
	16.4.4 	
      not to decompile, disassemble or reverse engineer or
      otherwise modify, adapt, alter or vary the whole or any part of the
      Confidential Information; and

	 	 
	16.4.5 	
      to take all such steps as may be reasonably necessary to
      prevent Confidential Information from falling into the hands of
      unauthorised third parties and, to the extent that any Confidential
      Information is disclosed to any of its directors, other staff or
      representatives, to ensure that such individuals are familiar with the
      restrictions contained in this Agreement and abides by the terms contained
      in this clause 16.

	16.5 	
      Subject to the provisions of clause 16.8, the
      undertakings given by each of the BEE Parties in clause 16.4 shall not
      apply to any Confidential Information which –

	16.5.1 	
      is or becomes generally available to the public other
      than by the negligence or default of BORN FREE or of the BEE Shareholders
      or by the breach of this clause 16 by the BEE Shareholders or BORN
      FREE;

	 	 
	16.5.2 	
      has been supplied to the party to whom it is disclosed by
      a third party who is under no obligation to maintain such information in
      confidence; or

	 	 
	16.5.3 	
      is disclosed pursuant to a requirement or request by
      operation of law, to the extent of compliance with such requirement or
      request only and not for any other purpose,

provided that – 

	16.5.4 	
      the onus shall at all times rest on the BEE Shareholders
      or BORN FREE, as the case may be, to establish that such information falls
      within such exclusions;

28 

	16.5.5 	
      information shall not be deemed to be within the
      foregoing exclusions merely because such information is embraced by more
      general information in the public domain or in the possession of the BEE
      Shareholders or BORN FREE; and

	 	 
	16.5.6 	
      any combination of features shall not be deemed to be
      within the foregoing exclusions merely because individual features are in
      the public domain or in the possession of the BEE Shareholders or BORN
      FREE, but only if the combination itself is in the public domain or in the
      possession of the BEE Shareholders or BORN
FREE.

	16.6 	
      The determination of whether information is Confidential
      Information shall not be affected by whether or not such information is
      subject to, or protected by, common law or statute related to copyright,
      patent, trademarks or otherwise.

	 	 
	16.7 	
      If any of the BEE Parties are uncertain as to whether any
      information is Confidential Information, the BEE Shareholders or BORN
      FREE, as the case may be, shall treat such information as confidential
      until the contrary is agreed in writing by the Company and by the
      Company.

	 	 
	16.8 	
      In the event that either the BEE Shareholders or BORN
      FREE is required to disclose any Confidential Information pursuant to
      clause 16.5.3, it shall -

	16.8.1 	
      notify the Company thereof prior to disclosure, if
      possible;

	 	 
	16.8.2 	
      take all such steps to limit the disclosure to the extent
      that it lawfully and reasonably can, except to the extent that the Company
      waive the taking of any or all such steps;

	 	 
	16.8.3 	
      afford the Company a reasonable opportunity, if possible,
      to intervene in the proceedings;

	 	 
	16.8.4 	
      comply with the reasonable requests of the Company as to
      the manner and terms of any such disclosure.

	16.9 	
      Each of the BEE Parties hereby undertakes to the Company
      that neither it nor any party which controls it will, either alone or
      jointly or together with any other person –

	16.9.1 	
      directly or indirectly encourage or entice or persuade or
      induce any client or customer of the Company or its subsidiaries to take
      its customers or clientele away from the Company or its subsidiaries, or
  cause or assist in causing any of the foregoing to take place; and/or

29 

	16.9.2 	
      directly or indirectly discourage or dissuade any person
      from referring or continuing to refer its customers or business to the
      Company or its subsidiaries, or cause or assist in causing any of the
      foregoing to take place.

	16.10 	
      Each of the BEE Parties undertakes to the Company that it
      will not, either alone or jointly or together with any other person, be
      interested or engaged, directly or indirectly, including but not limited
      to being a proprietor, partner, director, shareholder, member of a
      syndicate or close corporation or advisor (in any way) in or with any
      entity which is engaged in any business in direct competition with the
      Business in the Republic of South Africa (the
  "Territory").

	 	 
	16.11 	
      The undertakings given and the restraints imposed on the
      BEE Parties in terms of clauses 16.4 to 16.8.4 shall continue
      indefinitely. The undertakings given and the restraints imposed on the BEE
      Parties in terms of clauses 16.9 and 16.10, shall be subject to clause
      18.

	 	 
	16.12 	
      Each of the undertakings and restrictions in clauses 16.9
      and 16.10 shall be regarded as a distinct and severable covenant, in
      respect of –

	16.12.1 	
      each of the months falling within the period of the
      restraint;

	 	 
	16.12.2 	
      each city and town within the Territory;

	 	 
	16.12.3 	
      each activity falling within the ambit of the Business;
      and

	 	 
	16.12.4 	
      each capacity which the BEE Shareholders or BORN FREE is
      prohibited from holding in terms of this
Agreement.

	16.13 	
      The Company acknowledges that the undertakings and
      restrictions set out above will apply equally to it with regard to any
      confidential information relating to the business of BORN FREE or the
      business of any of the BEE Shareholders to the extent that such
      confidential information comes into the possession of the Company pursuant
      to the implementation of the Transaction
Documents.

	17 	
      ANTI-CORRUPTION CONTROLS AND BUSINESS
    PRACTICES

	17.1 	
      None of the BEE Parties shall, and the BEE Shareholders
      shall procure that BORN FREE does not, do or perform any act which is
      contrary to any laws of the Republic of South Africa or to any applicable
      U.S. laws, including the Foreign Corrupt Practices Act of
  1977.

30 

	17.2 	
      The BEE Parties warrant and undertake that they have
      instituted and maintained, and will continue to maintain, adequate
      appropriate policies, procedures and controls designed to ensure continued
      compliance with all applicable anti- corruption laws, including the
      Foreign Corrupt Practices Act of 1977.

	 	 
	17.3 	
      Without in any way detracting from any warranties,
      representations and undertakings referred to elsewhere in this Agreement
      but subject to the provisions of clause 18, each of the BEE Parties
      represents, warrants and agrees to the
following:

	17.3.1 	
      Compliance with Anti-Corruption Laws

	 	 
		
      Each of the BEE Parties warrants and represents that it
      nor any of its respective directors, officers, employees, partners, agents
      or other person representing it has made or promised to make or
      transferred, and agrees that none of the foregoing persons will make or
      promise to make or transfer, in connection with the obligations
      contemplated by the Transaction Documents or in connection with any other
      business transactions involving the Company or any of its subsidiaries,
      any payment or anything of value, directly or indirectly
  –

	17.3.1.1 	
      to any officer or employee of a Governmental Body
      (including officers or employees of entities owned or controlled by any
      Government Body) or public international organisations;

	 	 
	17.3.1.2 	
      to any political party, official of a political party or
      candidate;

	 	 
	17.3.1.3 	
      any other person, under circumstances in which the BEE
      Parties, or their respective directors, officers, employees, partners,
      agents or other person representing it know, or have reason to know, that
      all or any portion of such money or thing of value will be offered or
      given, directly or indirectly, to any of the foregoing, or

	 	 
	17.3.1.4 	
      any person, company, partnership or other legal
      entity;

	 	 
		
      for the purpose of improperly obtaining, retaining or
      directing business or to secure or obtain any improper business advantage,
      or to seek to induce a person to perform improperly any function which is
      of a public nature, connected with business, undertaken in the course of a
      person's employment, or a function by or on behalf of a body of persons.
      The intention being that no payments or transfers of value shall be made
      which have the purpose or effect of public or commercial bribery, acceptance of or
      acquiescence in extortion, kickbacks or other unlawful or improper means
  of obtaining business.

31 

	17.3.2 	
      Government Ownership, Change in Ownership or
      Control

	 	 
		
      Each of the BEE Parties warrants and represents that to
      the best of its knowledge as at the Signature Date, no director of BORN
      FREE and no employee of BORN FREE, or other person who will be involved in
      fulfilling the obligations of the BEE Shareholders and/or BORN FREE under
      the Transaction Documents is a Government Official, political party
      official or candidate, or a Close Family Member of such an official or
      candidate. If, whilst BORN FREE is a shareholder in the Company, there is
      a change in any of the matters or facts warranted or represented in terms
      of this clause 17.3.2, the BEE Parties agree to disclose such change in
      writing to the Company and the Company within 7 (seven) days of the change
      occurring. For the purposes of this clause 17.3.2
–

	17.3.2.1 	
      "Government Official" means any officer or
      employee of any Governmental Body or any department, agency or
      instrumentality thereof, or of any entity which is owned or controlled by
      a Governmental Body, or of any public international
organisation;

	 	 
	17.3.2.2 	
      "Close Family Member" means the individual's
      spouse; the individual's and the spouse's grandparents, parents, siblings,
      children, nieces, nephews, aunts, uncles and first cousins; the spouse of
      any of these people; and any other individuals who share the same
      household with the Government Official.

	17.3.3 	
      FCPA Questionnaire

	 	 
	17.3.4 	
      The Company may from time to time request any of the BEE
      Parties to deliver to the Company a FCPA Questionnaire, duly completed by
      such director, officer, trustee, member or shareholder of any of the BEE
      Parties or any of its subsidiaries as may be identified by the Company.
      Each of the BEE Parties shall procure that the director, officer, trustee,
      member or shareholder identified by the Company duly completes the FCPA
      Questionnaire and shall deliver the completed FCPA Questionnaire to the
      Company within 14 (fourteen) days of the request. “FCPA Questionnaire”
      means the document attached hereto marked “C”, provided that
      the Company may include such additional information as it may consider
  necessary or relevant from time to time.

32 

	17.3.5 	
      Accuracy of Disclosures

	 	 
		
      Each of the BEE Parties represents, warrants and
      undertakes that all material information provided by BORN FREE or by the
      BEE Shareholders to the Company, or to be provided to the Company, is and
      shall be accurate and complete in all material
respects.

	18 	
      DURATION OF THE UNDERTAKINGS AND
    RESTRICTIONS

	 	 
		
      The obligations and restrictions placed on the BEE
      Parties, as well as the agreements of and the undertakings and warranties
      given by the BEE Parties, in terms of clauses 9.1, 10, 12, 13.1.2, 16.9,
      16.10 and 17, shall be regarded as having been imposed on or given by
    –

	18.1 	
      each of the BEE Shareholders from the Signature Date and
      throughout any period during which –

	18.1.1 	
      BORN FREE is a shareholder in the Company; and

	 	 
	18.1.2 	
      such BEE Shareholder holds any shares in BORN FREE;
      and

	18.2 	
      BORN FREE with respect to the period from the Signature
      Date until the date that BORN FREE is no longer a shareholder in the
      Company pursuant to the disposal of all shares acquired pursuant to this
      Agreement.

	19 	
      AUDIT

	19.1 	
      Each of the BEE Parties agrees that it will allow the
      Company and/or the Company’s representatives to audit it to determine
      compliance with laws and the terms of the Transaction Documents, which
      shall include, but not be limited to –

	19.1.1 	
      providing within 7 (seven) days of request therefore, all
      necessary information and access necessary for the representatives of the
      Company and/or the Company to audit its books and records with respect to
      –

	19.1.1.1 	
      its ownership; and

	 	 
	19.1.1.2 	
      any of the BEE Parties’ activities related to performance
      under and compliance with any of the Transaction Documents;
  and

33 

	19.1.2 	
      cooperating with Company, its counsel or its designees in
      connection with any existing or future investigation, litigation or
      inquiry by any state, federal, foreign or private entity relating to this
      Agreement and any matter in which BEE Parties was involved or has
      knowledge. In each case, such cooperation includes all assistance that
      Company reasonably requests. Failure to cooperate will be deemed a
      material breach of this Agreement.

	19.2 	
      The rights of the Company and/or of the Company to
      conduct such audits in relation to –

	19.2.1 	
      each of the BEE Shareholders shall continue to apply for
      a period of 5 (five) years after it ceases to be a member of BORN FREE or
      BORN FREE ceases to be a shareholder in the Company, whichever first
      occurs; and

	 	 
	19.2.2 	
      BORN FREE shall continue to apply for a period of 5
      (five) years after BORN FREE ceases to be shareholder in the
    Company.

	20 	
      CALL OPTION

	20.1 	
      The Company may, at any time after the Issue Date, call
      on BORN FREE to either: (i) exchange the BEE Shares held by it for the
      Equivalent CPS Shares; or (ii) sell the BEE Shares to the Company at Fair
      Market Value; by giving BORN FREE written notice (“Call
      Notice”).

	 	 
	20.2 	
      Upon receipt of the Call Notice, BORN FREE shall
      immediately transfer the BEE Shares held by it to the Company and the
      Board is irrevocably authorized by BORN FREE to utilize any of the stock
      powers or transfer secretary direction letter, signed by BORN FREE in
      accordance with clause 4.1.4, to effect such transfer.

	 	 
	20.3 	
      Within 30 (thirty) days of the transfer contemplated in
      clause 20.2, the Company shall procure that NET1 issues the Equivalent CPS
      Shares to BORN FREE, in exchange for the BEE Shares so transferred (if
      option 20.1(i) was elected), alternatively, if BORN FREE elected to rather
      sell its shares to the Company pursuant to clause 20.1(ii), pay the
      proceeds from such sale, less any amount owing to either the Company or
      NET1 by BORN FREE, to BORN FREE..

	 	 
	20.4 	
      In the event of a sale contemplated in clause 20.1(ii),
      the Company is irrevocably authorized to apply set-off of any amount due
      to the Company by SPV against any proceeds from such sale due to BORN FREE
      and to furthermore pay the remaining proceeds (after applying such
set-off) to NET1 in settlement (partly or fully) of any amount owing by BORN FREE to NET1.

34 

	21 	
      BREACH

	21.1 	
      In the event of any of the Parties ("Defaulting
      Party") committing a breach of any of the terms of this Agreement
      prior to the Issue Date and failing to remedy such breach within a period
      of 10 (ten) days after receipt of a written notice from another Party
      ("Aggrieved Party") calling upon the Defaulting Party so to remedy,
      then the Aggrieved Party shall be entitled (in addition to any other
      remedies which may be available to the Aggrieved Party pursuant to any of
      the Transaction Documents), at its sole discretion and without prejudice
      to any of its other rights in law, either to claim specific performance of
      the terms of this Agreement or to cancel this Agreement forthwith and
      without further notice, and in either case to claim and recover damages
      from the Defaulting Party.

	 	 
	21.2 	
      The Parties agree that any costs awarded will be
      recoverable on an attorney-and- own-client scale unless the Court
      specifically determines that such scale shall not apply, in which event
      the costs will be recoverable in accordance with the High Court tariff,
      determined on an attorney-and-client scale.

	 	 
	21.3 	
      No Party shall be entitled to cancel this Agreement for
      breach, after the Issue Date.

	22 	
      DISPUTE RESOLUTION

	22.1 	
      In the event of there being any dispute or difference
      between the Parties arising out of this Agreement, the said dispute or
      difference shall on written demand by either Party be submitted to
      arbitration in Johannesburg in accordance with the AFSA rules, which
      arbitration shall be administered by AFSA.

	 	 
	22.2 	
      Should AFSA, as an institution, not be operating at that
      time or not be accepting requests for arbitration for any reason, then the
      arbitration shall be conducted in accordance with the AFSA rules for
      commercial arbitration (as last applied by AFSA) before an arbitrator
      appointed by agreement between the parties to the dispute or failing
      agreement within 10 (ten) business days of the demand for arbitration,
      then any party to the dispute shall be entitled to forthwith call upon the
      chairperson of the Johannesburg Bar Council to nominate the arbitrator,
      provided that the person so nominated shall be an advocate of not less
      than 10 (ten) years standing as such. The person so nominated shall be the
      duly appointed arbitrator in respect of the dispute. In the event of the attorneys
      of the parties to the dispute failing to agree on any matter relating to
      the administration of the arbitration, such matter shall be referred to
      and decided by the arbitrator whose decision shall be final and binding on
  the parties to the dispute.

35 

	22.3 	
      Any party to the arbitration may appeal the decision of
      the arbitrator or arbitrators in terms of the AFSA rules for commercial
      arbitration.

	 	 
	22.4 	
      Nothing herein contained shall be deemed to prevent or
      prohibit a party to the arbitration from applying to the appropriate court
      for urgent relief or for judgment in relation to a liquidated
  claim.

	 	 
	22.5 	
      Any arbitration in terms of this clause 22 (including any
      appeal proceedings) shall be conducted in camera and the Parties
      shall treat as confidential details of the dispute submitted to
      arbitration, the conduct of the arbitration proceedings and the outcome of
      the arbitration.

	 	 
	22.6 	
      This clause 22 will continue to be binding on the Parties
      notwithstanding any termination or cancellation of the
Agreement.

	 	 
	22.7 	
      The Parties agree that the written demand by a party to
      the dispute in terms of clause 22.1 that the dispute or difference be
      submitted to arbitration, is to be deemed to be a legal process for the
      purpose of interrupting extinctive prescription in terms of the
      Prescription Act, 1969.

	23 	
      NOTICES AND DOMICILIA

	23.1 	
      The Parties select as their respective domicilia
      citandi et executandi the following physical addresses, and for the
      purposes of giving or sending any notice provided for or required under
      this Agreement, the said physical addresses as well as the following
      telefax numbers -

	Name 	Physical Address 	Telefax 
	  	  	  
	The Company and 	4th Floor, President Place 	011 880 7080 
	NET1 	  	  
	  	Cnr Jan Smuts Avenue and 	  
	  	Bolton Road 	  
	  	Rosebank 	  
	 	 	 
	
      Marked for the attention of: Herman Kotzé 
	 	 

36 

	Name 	Physical Address 	Telefax 
	  	  	  
	BORN FREE 	Block 6 	011 076 2293 
	   	3001 William Nicol Drive	 
	  	Bryanston 	  

	Marked for the attention of: Mazwi Yako 	 	  
	  	  	  
	Name 	Physical Address 	Telefax 
	  	  	  
	Mazwi Yako 	Block 6 	011 076 2293 
	 	3001 William Nicol Drive 
	 
	  	Bryanston 	  

		
      provided that a Party may change its domicilium or
      its address for the purposes of notices to any other physical address or
      telefax number by written notice to the other Party to that effect. Such
      change of address will be effective 5 (five) business days after receipt
      of the notice of the change.

	 	 
	23.2 	
      All notices to be given in terms of this Agreement will
      be given in writing and will -

	23.2.1 	
      be delivered by hand or sent by telefax, and not by way
      of email;

	 	 
	23.2.2 	
      if delivered by hand during business hours, be presumed
      to have been received on the date of delivery. Any notice delivered after
      business hours or on a day which is not a business day will be presumed to
      have been received on the following business day; and

	 	 
	23.2.3 	
      if sent by telefax during business hours, be presumed to
      have been received on the date of successful transmission of the telefax.
      Any telefax sent after business hours or on a day which is not a business
      day will be presumed to have been received on the following business
      day.

	23.3 	
      Notwithstanding the above, any notice given in writing,
      and actually received by the Party to whom the notice is addressed, will
      be deemed to have been properly given and received, notwithstanding that
      such notice has not been given in accordance with this clause
  23.

	24 	
      APPLICABLE LAW AND
JURISDICTION

	24.1 	
      This Agreement will in all respects be governed by and
      construed under the laws of the Republic of South Africa.

	 	 
	24.2 	
      Subject to clause 22, the Parties hereby consent and
      submit to the non-exclusive jurisdiction of the South Gauteng High Court,
Johannesburg in any dispute arising from or in connection with the Transaction Documents. 

37 

	25 	
      UNDERTAKINGS BY THE
PARTIES

	25.1 	
      The Parties shall at all times during the continuance of
      this Agreement observe the principles of good faith towards one another in
      the performance of their obligations in terms of this Agreement. This
      implies, without limiting the generality of the aforegoing, that they
      shall –

	25.1.1 	
      at all times during the term of this Agreement act
      reasonably, honestly and in good faith;

	 	 
	25.1.2 	
      perform their obligations arising from this Agreement
      diligently and with reasonable care;

	 	 
	25.1.3 	
      make full disclosure to each other of any matter that may
      affect the execution or implementation of this
Agreement.

	25.2 	
      It is recognised that the continued growth of the Company
      will be for the benefit of all BEE Shareholders and accordingly the BEE
      Shareholders undertake at all times to act in the best interests of the
      Company and in good faith to one another and to BORN FREE and at all times
      to use their best endeavours to advance the interests of the Company and
      BORN FREE. In particular, each of the BEE Shareholders undertakes not
      directly or indirectly, whether alone or jointly with any third party, to
      carry out any activity or undertaking of whatsoever nature or kind which
      directly competes with the Business.

	 	 
	25.3 	
      Each of the BEE Parties undertake at all times to do all
      such things, perform all such actions and take all such steps (including
      in particular the exercise of their respective voting rights in BORN FREE
      and the Company) and to procure the doing of all such things, the
      performance of all such actions and the taking of all such steps as may be
      open to them and necessary for or incidental to the putting into effect
      and maintenance of the terms, conditions and import of this
    Agreement.

	 	 
	25.4 	
      The undertakings given in this clause 25 shall apply to
      each BEE Shareholder for so long as that BEE Shareholder remains a
      shareholder and for a period of 1 (one) year thereafter.

	 	 
	25.5 	
      The undertakings contained in this clause 25 are for the
      benefit of the Company and BORN FREE.

38 

	26 	
      INDEPENDENT ADVICE

	 	 
		
      Each of the Parties to this Agreement hereby acknowledges
      and agrees that –

	26.1 	
      it has been free to secure independent legal and other
      professional advice (including financial and taxation advice) as to the
      nature and effect of all of the provisions of this Agreement and that it
      has either taken such independent advice or has dispensed with the
      necessity of doing so; and

	 	 
	26.2 	
      all of the provisions of this Agreement and the
      restrictions herein contained are fair and reasonable in all the
      circumstances and are in accordance with the Party’s
  intentions.

	27 	
      GENERAL

	27.1 	
      Whole Agreement

	27.1.1 	
      The Transaction Documents constitute the whole of the
      agreement between the Parties relating to the matters dealt with herein
      and, save to the extent otherwise provided herein, no undertaking,
      representation, term or condition relating to the subject matter of the
      Transaction Documents not incorporated in the Transaction Documents shall
      be binding on either of the Parties.

	27.2 	
      Variations to be in Writing

	 	 
		
      No addition to or variation, deletion, or agreed
      cancellation of all or any clauses or provisions of this Agreement will be
      of any force or effect unless in writing and signed by the
  Parties.

	 	 
	27.3 	
      No Indulgences

	 	 
		
      No latitude, extension of time or other indulgence which
      may be given or allowed by any Party to the other Party in respect of the
      performance of any obligation hereunder, and no delay or forbearance in
      the enforcement of any right of any Party arising from this Agreement and
      no single or partial exercise of any right by any Party under this
      Agreement, shall in any circumstances be construed to be an implied
      consent or election by such Party or operate as a waiver or a novation of
      or otherwise affect any of the Party's rights in terms of or arising from
      this Agreement or estop or preclude any such Party from enforcing at any
      time and without notice, strict and punctual compliance with each and
      every provision or term hereof. Failure or delay on the part of any Party
      in exercising any right, power or privilege under this Agreement will not
      constitute or be deemed to be a waiver thereof, nor will 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.

39 

	27.4 	
      No Waiver or Suspension of Rights

	 	 
		
      No waiver, suspension or postponement by any Party of any
      right arising out of or in connection with this Agreement shall be of any
      force or effect unless in writing and signed by such Party. Any such
      waiver, suspension or postponement will be effective only in the specific
      instance and for the purpose given.

	 	 
	27.5 	
      Provisions Severable

	27.5.1 	
      All provisions and the various clauses of this Agreement
      are, notwithstanding the manner in which they have been grouped together
      or linked grammatically, severable from each other. Any provision or
      clause of this Agreement which is or becomes unenforceable in any
      jurisdiction, whether due to voidness, invalidity, illegality,
      unlawfulness or for any other reason whatever, shall, in such jurisdiction
      only and only to the extent that it is so unenforceable, be treated as
      pro non scripto and the remaining provisions and clauses of this
      Agreement shall remain of full force and effect. The Parties declare that
      it is their intention that this Agreement would be executed without such
      unenforceable provision if they were aware of such unenforceability at the
      time of execution hereof.

	 	 
	27.5.2 	
      Without effecting the generality of the provisions
      contained in clause 27.5.1, should any court of competent jurisdiction or
      an arbitrator appointed in accordance with clause 22 find that the
      provision contained in clause 11.2.1 is void, invalid, illegal or
      unlawful, then and in such event the Forced Sale Price shall be the Fair
      Market Value in relation to a sale triggered by any event contemplated in
      clause 11.1.1 to 11.1.7

	27.6 	
      Continuing Effectiveness of Certain
    Provisions

	 	 
		
      The expiration or termination of this Agreement shall not
      affect such of the provisions of this Agreement as expressly provided 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.

40 

	27.7 	
      No Assignment

	 	 
		
      Neither this Agreement nor any part, share or interest
      herein nor any rights or obligations hereunder may be ceded, delegated or
      assigned by either Party without the prior signed written consent of the
      other Party, save as otherwise provided herein.

	 	 
	27.8 	
      Exclusion of Electronic Signature

	 	 
		
      The reference in clauses 27.2, 27.4 and 27.7 to writing
      signed by a Party shall, notwithstanding anything to the contrary in this
      Agreement, be read and construed as excluding any form of electronic
      signature.

	28 	
      COSTS

	28.1 	
      Except as otherwise specifically provided herein, each
      Party will bear and pay its own legal costs and expenses of and incidental
      to the negotiation, drafting, preparation and implementation of the
      Transaction Documents. The BEE Parties shall be liable to the Company and
      NET1 for any legal fees incurred by either of them in enforcing the terms
      of this Agreement as well as any cost incurred by either the Company or
      NET1 to effect any transfer of shares contemplated in this
    Agreement.

	 	 
	28.2 	
      The BEE Parties shall reimburse NET1 and/or the Company,
      on demand, for any cost incurred by either in relation to a sale of BEE
      Shares pursuant to an Offer (as defined in clause 7.4.1) or a Trigger
      Event, or a sale or exchange contemplated in clause 20 (including but not
      limited to brokerage fees), and NET1 and the Company are authorized to
      apply set-off against any amounts due and owing by either to BORN FREE as
      a result of the aforementioned sale, exchange or
  otherwise.

	29 	
      PUBLICITY

	 	 
		
      Any and all press releases, announcements or other
      publicity pertaining to the transactions related to the Transaction
      Documents will be in mutually agreed form (which may be joint form),
      provided it does not adversely impact or delay any of the Company’s US
      securities law filings or other required disclosures, and released to
      mutually agreed wire services or other media.

41 

	30 	
      MATERIAL NON-PUBLIC INFORMATION

	 	 
		
      Each of the BEE Parties acknowledges that the United
      States and South African securities laws prohibit persons who have
      material, non-public information concerning the Company or its
      subsidiaries from purchasing or selling securities of the Company or from
      communicating such information to any person under circumstances in which
      it is reasonably foreseeable that such person is likely to purchase or
      sell such securities in reliance upon such information. The BEE Parties
      further acknowledge that they may receive such material, non-public
      information concerning the Company and its subsidiaries.

	 	 
	31 	
      STANDSTILL

	 	 
		
      Each of the BEE Parties agree that so long as BORN FREE
      holds any BEE Shares, unless specifically permitted in writing by the
      Company, neither BORN FREE or the BEE Shareholders nor any entity or
      person which is controlled (as defined in Rule 12b-2 under the Exchange
      Act) directly or indirectly by either BORN FREE or the BEE Shareholders,
      or any representatives acting on their behalf, will in any manner,
      directly or indirectly:

	31.1 	
      effect or seek, offer or propose (whether publicly or
      otherwise) to effect, or announce any intention to effect or cause or
      participate in or in any way assist, facilitate or encourage any other
      person to effect or seek, offer or propose (whether publicly or otherwise)
      to effect or participate in:

	31.1.1 	
      any acquisition of any assets, indebtedness or businesses
      of the Company or any of its subsidiaries;

	 	 
	31.1.2 	
      any tender or exchange offer, merger or other business
      combination involving the Company, its subsidiaries, or assets of the
      Company;

	 	 
	31.1.3 	
      any recapitalisation, restructuring, liquidation,
      dissolution or other extraordinary transaction with respect to the
      Company; or

	 	 
	31.1.4 	
      any “solicitation” of "proxies" (as such terms are used
      in the proxy rules of the SEC) or consents to vote any voting securities
      of the Company;

	31.2 	
      form, join or in any way participate in a "group" (as
      defined under the Exchange Act) with third parties with respect to any of
      the matters described in this clause 31 or otherwise act in concert with
      third parties in respect of any of the matters described in this clause
      31;

42 

	31.3 	
      otherwise act, alone or in concert with others, to seek
      representation on or to control or influence the management, Board or
      policies of the Company or to obtain representation on the
Board;

	 	 
	31.4 	
      take any action that would or would reasonably be
      expected to force the Company to make a public announcement regarding any
      of the types of matters set forth in 31.1 above; or

	 	 
	31.5 	
      enter into any discussions or arrangements with any third
      party with respect to any of the foregoing. The BEE Parties each also
      agree during such period not to request that the Company or any of its
      subsidiaries or representatives, directly or indirectly, amend or waive
      any provision of this clause 31 (including this
  sentence).

	32 	
      SIGNATURE

	32.1 	
      This Agreement is signed by the Parties on the dates and
      at the places indicated below.

	 	 
	32.2 	
      This Agreement may be executed in counterparts, each of
      which shall be deemed an original, and all of which together shall
      constitute one and the same Agreement as at the date of signature of the
      Party last signing one of the counterparts.

	 	 
	32.3 	
      The persons signing this Agreement in a representative
      capacity warrant their authority to do so.

	 	 
	32.4 	
      The Parties record that it is not required for this
      Agreement to be valid and enforceable that a Party shall initial the pages
      of this Agreement and/or have its signature of this Agreement verified by
      a witness.

43 

SIGNED at Rosebank on December 10, 2013 

	 	For and on behalf of 
	 	NET 1 UEPS TECHNOLOGIES, INC 
	 	  
	 	  
	 	  
	 	/s/
      Serge Belamant 
	 	Signature 
	 	Serge
      C.P. Belamant 
	 	Name of Signatory 
	 	Chief
      Executive Officer 
	 	Designation of Signatory 

SIGNED at Rosebank on December 10, 2013 

	 	For and on behalf of 
	 	NET 1 APPLIED TECHNOLOGIES SOUTH 
	 	AFRICA (PTY) LTD 
	 	  
	 	  
	 	  
	 	/s/
      Serge Belamant 
	 	Signature 
	 	Serge
      C.P. Belamant 
	 	Name of Signatory 
	 	Director 
	 	Designation of Signatory

44 

SIGNED at Rosebank on December 10, 2013 

	 	For and on behalf of 
	 	BORN FREE INVESTMENTS 272 
	 	(PROPRIETARY) LIMITED 
	 	  
	 	  
	 	  
	 	/s/
      Mazwi Yako 
	 	Signature 
	 	Mazwi
      Yako 
	 	Name of Signatory 
	 	Director 
	 	Designation of Signatory 

SIGNED at Rosebank on December 10, 2013 

	 	For and on behalf of 
	 	MAZWI YAKO 
	 	  
	 	  
	 	  
	 	/s/
      Mazwi Yako 
	 	Signature 
	 	Mazwi
      Yako 
	 	Name
      of Signatory 
	 	  
	 	Designation of Signatory

ANNEXURE A 
TRANSFER SECRETARY DIRECTION LETTER
TEMPLATE 

[Letterhead of Net 1 UEPS Technologies, Inc. To be signed by all
Parties] 

[Date] 

[Link Market Services address information] 

RE: Transfer Restrictions—Certain Shares of Net 1 UEPS
Technologies, Inc. 

Dear Sir/Madam: 

	1. 	
      Please be advised that in terms of a Relationship
      Agreement dated November [•], 2013 (the “Agreement”) by and among
      Net 1 UEPS Technologies, Inc. (the “Company”), Net1 Applied
      Technologies South Africa (Pty) Ltd, Born Free Investments 272 (Pty)
      Limited (the “Shareholder”) and Mazwi Yako, the Company has issued
      and sold to Shareholder 300,000 shares of its common stock, par value
      $0.001 per share (the “Agreement Shares”).

	 	 
	2. 	
      The Agreement Shares will be issued in certificated form
      (either as one certificate or as a number of certificates representing the
      aggregate number of Agreement Shares, at the Company’s direction). Each of
      the certificates representing the Agreement shares will bear a legend
      stating as follows:

  
    
      “The shares represented by this certificate are subject to
        restrictions on transfer contained in the Relationship Agreement dated November
        [•], 2013 by and among Net 1 UEPS Technologies, Inc., Net1 Applied
          Technologies South Africa (Pty) Ltd, Born Free Investments 272 (Proprietary)
          Limited and Mazwi Yako, and may only be transferred as explicitly provided in
          the Relationship Agreement, a copy of which is on file at the offices of Net 1
          UEPS Technologies, Inc.” 

    

  

	3. 	
      The Agreement Shares will be registered in the name of
      the Shareholder and will be included on the South African Branch Register
      of the Company.

	4. 	
      This letter is being provided to you in your capacity as
      Transfer Secretary for the Company’s common stock included on the South
      African Branch Register, in order to effectuate certain provisions of the
      Agreement, including certain transfer restrictions relating to the
      Agreement Shares.

	 	 
	5. 	
      The Company hereby directs you to refuse any and all
      requests by any person to register the transfer of any of the Agreement
      Shares, or to remove the restrictive legend referenced in paragraph 2
      above, unless such request is contained in the form of a written request
      signed by an officer of the Company and delivered to you.

	 	 
	6. 	
      The Company may, on one or more occasions, direct you to
      transfer all or a portion of the Agreement Shares to the Company or to
      another person as may be designated by the Company. Upon your receipt of
      such a written request signed by the Company, together with the delivery
      to you of one or more stock certificates representing at least the number
      of Agreement Shares to be transferred (together with executed stock
      powers), you shall register the transfer to the Company or its designee
      pursuant to the Company’s direction. It is specifically recorded that no
      consent of the Shareholder or of any person other than the Company shall
      be required to affect such registration of transfer.

	 	 
	7. 	
      If a written transfer request in terms of paragraph 6
      relates to fewer than all of the Agreement Shares represented by the
      certificates delivered to you, you shall issue one or more new
      certificates in the name of the Shareholder (as directed by the Company)
      aggregating the balance of the Agreement Shares, which certificate(s)
      shall include the legend referenced in paragraph 2.

	 	 
	8. 	
      The directions contained in this letter shall become
      effective immediately and shall remain in full force and effect until you
      receive a written instruction signed by the Company to the effect that
      some or all of the directions contained herein are no longer
      applicable.

	 	 
	9. 	
      By its signature below, the Shareholder hereby
      irrevocably consents to the directions contained in this letter and agrees
      that no transfer of the Agreement Shares shall be registered except at the
      direction of the Company in terms of this letter.

	 	 
	10. 	
      By your signature below, you agree to comply with the
      directions contained in this letter.

ANNEXURE B 
STOCK POWER TEMPLATE 

 

IRREVOCABLE STOCK POWER 

FOR VALUE RECEIVED, the undersigned does hereby sell, assign
and transfer to ___________________ ___________ shares of the common stock, par
value $.001 per share, of Net 1 UEPS Technologies, Inc. (the
“Corporation”) represented by certificate no. __________ in the
name of the undersigned that was acquired by the undersigned on the books of the
Corporation. The undersigned does hereby irrevocably constitute and appoint
Herman G. Kotze as its attorney-in-fact to transfer such shares of the
Corporation, with full power of substitution in the premises. 

Dated: _____________, ____ 

By:
_________________________________

Name: 
______________________________

Title:   
______________________________

ANNEXURE C 
FCPA QUESTIONNAIRE 

APPENDIX II 
Third Party Questionnaire 

Instructions: Please provide answers to and information
regarding all of the questions below. For any answer requiring more space than
is given in this questionnaire, please attach the complete answer on a separate
sheet of paper. Please attach all requested additional documents to this
completed response. 

	I. 	
      Identifying
Information

	1. 	
      Name of Company or Individual:
      ______________________________________

	 	 
	2. 	
      Business Address (principal place of business and address
      for purposes of communications with the Company if different from the
      principal place of business):

	 	 
		
       

	 	 
	3. 	
      Telephone :   ________________

	 	 
	4. 	
      Facsimile:      ________________

	 	 
	5. 	
      Telex:            
      ________________

	 	 
	6. 	
      E-Mail:          
      ________________

	II. 	
      Business
Information

	1. 	
      Please provide a copy of your commercial registration
      and/or incorporation charter documents for the country in which you are
      incorporated and in the country of intended activity.

	 	 
	2. 	
      Number of employees (please attach a copy of your company
      organizational chart) :__

	 	 
	3. 	
      Your principal lines of business, including but not
      limited to, your current client list and current products being
      represented (please attach any available public reports): 

	 	 
	 	 
		
       

	 	 
	4. 	
      Other locations of your business:
      ______________________________________

	 	 
	5. 	
      Approximate turnover/revenue in the last five years
      (check as appropriate):

____                      
less than $1 million (U.S.); 

____                      
$1 to $10 million (U.S.); 

____                      
$10 to $50 million (U.S.);

 ____                      
over $50 million (U.S.) 

	6. 	
      If a new venture, estimated turnover/revenue for next
      business year: _________

	 	 
	7. 	
      Has your company or any of its principal officers,
      directors, or shareholders ever been charged with a criminal offense? If
      so, provide details. 

	 	 
	 	 
		
       

	 	 

	Ill. Ownership and Management
  

	1. 	
      Are you publicly held? ____ Yes; ____
  No.

	 	1a. 	If yes, what percent?
    ___________

		1b. 	
      If yes, please attach a copy of your most recent public
      filing showing the company's shareholders, partners, or owners. If this
      filing does not list major (>5%) shareholders, please identify the
      major shareholders (public and non- public). 

	IV. 	
      Government
Relationships

	1. 	
      Are any persons identified in response to any subpart of
      Section Ill:

		1a. 	
      Current officials of any government, including any
      government ministry, agency or government-owned or controlled enterprise
      (yes or no)? _____

	 	 	 
	 	1b. 	
      Current officials of any political party?
      ____________________

	 	 	 
	 	1c. 	
      Close relatives of either (a) or (b)?
      ____________________

	 	 	 
	 	1d. 	
      Past officials of any government agency, enterprise, or
      political party? _____

	 	 	 
		1e. 	
      Involved in any business relationship, including acting
      as an agent or consultant for, or holding common ownership of any business
      enterprise or partnership with any current official (or close family
      member) of the government, including any government ministry, agency or
      government-owned or controlled enterprise? 

	 	 	 

	2. 	
      lf the answer to any of 1a through 1c is yes, provide
      details, including:

	 	2a. 	Full name of government, company,
      or party position: 
	 	 	 
	 	 	 

	 	2b. 	Official
      Responsibilities:______________________________________________ 
	 	 	 
	 	2c. 	Dates of service (current or
      past):_____________________________________ 
	 	 	 
	 	2d. 	For relatives identified in
      Section Ill, state the relationship: 
	 	 	 

	 	2e. 	For common business interest, state
the type of business relationship, including the name of any enterprise or
partnership, and the nature of any agency agreement: _____

	V. 	
      References

	1. 	
      Commercial references. Please provide at least 3
      references, and if possible, include contact name and telephone/facsimile
      information:

1a._________________________________________________________________

1b._________________________________________________________________

1c._________________________________________________________________

1d._________________________________________________________________

	2. 	
      Bank reference: Please provide documentation evidencing
      the existence of one or more business accounts, and the length of time
      that you have had at least one account.

	VI. 	
      Certification

	 	 
		
      The undersigned, being duly authorized to respond to this
      questionnaire, and to certify as to the matters set forth below, hereby
      certifies as follows :

	1. 	
      To the best of my knowledge, all information set forth in
      this response is correct and complete; and

	 	 
	2. 	
      If the company represented by the undersigned enters an
      agreement with you the undersigned covenants and agrees that the company
      and its representatives will not offer, pay or promise to pay, anything of
      value to a "foreign official" (as defined below) in connection with any
      business covered by the agreement. "Foreign official" means and includes:
      (a) any official or employee of any government agency or government-owned
      or controlled enterprise; (b) any candidate for political office; or (c)
      any political party.

	 	Signed:
      ____________________________________________________________  Dated:
      _______________________________
	 	                                                            
      [Name and Title]

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