Document:

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into among Summer Infant, Inc. (“Parent”) and Summer Infant (USA), Inc. (“Summer USA,” and collectively with Parent, the “Company”) and Mark Messner (“Executive”).  Company and Executive are sometimes referred to in this Agreement as the “parties” or a “party.”

 

In consideration of the mutual covenants contained herein and other good and valuable consideration, including but not limited to Executive’s hiring and employment with the Company, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.                                      Employment and Term of Agreement.  The Company agrees to employ Executive, and Executive hereby accepts employment with the Company, upon the terms and conditions set forth in this Agreement.  This Agreement shall commence on the Effective Date as defined in Paragraph 19 and will continue in effect through the second anniversary of the Effective Date, unless terminated by either party as provided in this Agreement (such period being referred to herein as the “Initial Term”).  Thereafter, the Agreement shall be extended for successive periods of one (1) year unless the Company or the Executive shall elect not to renew the Agreement upon expiration of the Initial Term or any renewal term by providing written notice of non-renewal to the other party at least sixty (60) days prior to the expiration of the then current term.  The Initial Term and any subsequent renewal terms together are referred to as the “Term” of this Agreement.

 

The Executive shall begin performing the Services (as defined in Paragraph 2.1) on July 13, 2016 (“Start Date”).  The period of time from the Start Date of this Agreement until its eventual termination, for any reason, shall be referred to hereafter as the “Employment Period.”

 

2.                                      Position and Duties.

 

2.1                               Title, Reporting and Duties.  During the Employment Period, Executive shall serve as President and Chief Executive Officer (“CEO”) of the Company and shall perform the normal duties and responsibilities of a CEO for the Company, including but not limited to overseeing the operations of the Company, Product Development & Marketing, Quality Assurance, Legal, HR, Sales, Finance, Operations and IT.  Executive shall also assume and perform such other duties and services as may be designated by the Company and/or the Board of Directors of the Parent (“Board”) from time to time.  The duties and responsibilities of CEO and the services Executive is to perform to fulfill those duties are collectively referred to as the “Services.”  The Executive reports to the Board.

 

2.2                               Full Attention to Duties.  During the Employment Period, Executive shall devote his best efforts and his full business time and attention to the Services.  Executive shall perform the Services faithfully and to the best of his ability, and will carry out the policies and directives of the Company.  In Executive’s position as an officer of the Parent, he will be subject to Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Executive is responsible to ensure any requisite filings with the Securities and Exchange Commission (“SEC”) are made in a timely manner.

 

 

As long as the Company employs Executive, Executive agrees that he will not, except with the express written consent of the Board, become engaged in, or render services for, any other business.  Executive agrees that he will take no action prejudicial to the interests of the Company during the Employment Period.

 

2.3                                     Compliance with Policies.  Executive shall abide by all Company rules, regulations, policies, practices and procedures, including but not limited to the Company’s Code of Ethics and the Company’s policy against sexual and/or other harassment in the workplace, whether they are written and unwritten, in effect or as may from time to time be adopted or modified by the Company in its sole discretion.  The Company’s written rules, regulations, policies, practices and procedures shall be binding on Executive unless superseded by or in conflict with this Agreement, in which case this Agreement shall govern.

 

3.                                      Compensation and Benefits.

 

3.1                               Base Salary.  For the Services performed under this Agreement, including service as a director or officer of any subsidiary of the Company, Executive’s annual base salary during the Employment Period is $400,000 per annum (the “Base Salary”).  Executive’s salary shall be payable in regular installments in accordance with the Company’s general payroll practices and shall be subject to customary tax withholding.  Executive’s performance and compensation will be reviewed annually by the Compensation Committee of the Board (the “Committee”) and/or the Board, as applicable.  Executive’s Base Salary may be adjusted from time to time, as determined by the Committee and/or the Board, as applicable, but shall not be decreased other than as part of an across-the-board salary reduction applicable to all senior-level management personnel.

 

3.2                               Signing Bonus.  For the Services performed under this Agreement, including service as a director or officer of any subsidiary of the Company, Executive shall receive a one-time signing bonus in the amount of $20,000 (“Signing Bonus”), to be paid on the next regular payday after the Start Date.  The Signing Bonus is wages, is treated as such, and is subject to customary tax and other withholdings.  Should the Executive choose to terminate his employment with the Company for any reason within twelve (12) months from the Effective Date, Executive agrees to reimburse the Company the full amount of the Signing Bonus ($20,000) immediately upon termination of employment.

 

3.3                               2016 Bonus and STI Bonus Program.

 

(a)                                 For the 2016 fiscal year, Executive shall be eligible to earn an annual performance bonus (the “2016 Bonus Opportunity”) as set forth on the attached Exhibit A.  Any bonus under this Paragraph 3.3(a) will only be earned and paid if Executive remains continuously employed by the Company through the actual bonus payment date.  Any bonus earned by Executive under the 2016 Bonus Opportunity will be pro-rated in accordance with the number of months worked in fiscal 2016.  Any bonus payment made pursuant to this paragraph 3.3(a) will be paid on the date annual performance bonuses are generally paid to senior-level management personnel, but no later than the fifteenth day following the date of the Company’s filing of its Annual Report on Form 10-K for the 2016 fiscal year.

 

2

 

(b)                                 Beginning with fiscal year 2017, for each fiscal year ending during his employment, Executive shall be eligible to earn an annual performance bonus under the Company’s annual short-term incentive bonus program (the “Company STI Program”).  The target amount of that bonus will be eighty percent (80%) of Executive’s Base Salary for the applicable fiscal year, subject to the terms, conditions, and formulas contained in the applicable Company STI Program then in effect for the applicable fiscal year.  The actual bonus payable under the Company STI Program in any fiscal year will be determined by the Committee and/or the Board, as applicable, based on the achievement of corporate and individual performance objectives established for the applicable period.  Any bonus under this Paragraph 3.3(b) will only be earned and paid if Executive remains continuously employed by the Company through the actual bonus payment date.  Any bonus payment made pursuant to this paragraph 3.3(a) will be paid on the date annual performance bonuses are generally paid to senior-level management personnel, but no later than the fifteenth day following the date of the Company’s filing of its Annual Report on Form 10-K for the applicable fiscal year.  The Company reserves the right to amend the Company STI Program in its full discretion, at any time during the plan year.

 

3.4                               Long Term Incentive Plan.  Beginning with grants made in fiscal 2017, Executive will be eligible to participate in the Company’s annual equity grant program (“LTIP”), subject to the terms, conditions and formulas contained in the applicable LTIP then in effect.  The amounts of such awards and the terms and conditions thereof shall be determined by the Committee and/or the Board, as applicable, on the same basis as applicable to other senior-level management personnel.

 

3.5                               Hiring Grants.  As an inducement to enter into this Agreement and for the Services provided for under this Agreement, subject to approval of the Committee, the Executive will be granted the following equity awards:

 

(a)                                 an option to purchase 100,000 shares of the Company’s common stock, vesting 25% per year, with the first tranche vesting on the first anniversary date of the grant, as set forth in the form of Non-Qualified Stock Option Agreement attached as Exhibit B;

 

(b)                                 an award of 50,000 shares of restricted stock, vesting 25% per year, with the first tranche vesting on the first anniversary date of the grant, as set forth in the form of Restricted Stock Award Agreement attached as Exhibit C; and

 

(c)                                  an award of 100,000 performance-based restricted stock units, as set forth in the form of Restricted Stock Unit Award Agreement attached as Exhibit D.

 

3.6                               Commute Expenses and Housing Support; Relocation Reimbursement.

 

(a)                                 Executive shall be entitled to reimbursement for commuting expenses and/or housing support for a period of up to two (2) years from the Start Date (the “Housing Expiration”), with an annual cap of $60,000.  The Company shall reimburse Executive for reasonable expenses incurred by him in the course of performing the Services relating to costs of travel from Pennsylvania to Rhode Island, as well as costs representing rental, leasing, or purchase of housing within sixty (60) miles of the Company’s headquarters in Woonsocket, Rhode Island, while and for the purposes of performing the Services.  To be reimbursable, such

 

3

 

expenses shall be subject to the Company’s requirements with respect to amounts, type, reporting and documentation of such expenses, as determined from time to time in the sole discretion of the Committee and/or the Board, as applicable.  The commuting expenses and housing support shall be reviewed by the Committee and/or the Board in its sole discretion, as applicable, prior to the Housing Expiration.  Assuming the Term is renewed for an additional period of one (1) year following the Initial Term as set forth in Paragraph 1, the Executive shall be entitled to one (1) additional year of commuting expenses and/or housing support, as set forth above.

 

(b)                                 If Executive relocates within sixty (60) miles of the Company’s headquarters in Woonsocket, Rhode Island on or before the third anniversary of the Effective Date (assuming the Term is renewed for an additional period of one (1) year following the Initial Term as set forth in Paragraph 1), the Executive shall be entitled to reimbursement for reasonable relocation expenses in an amount not to exceed $20,000.  This amount shall be in addition to any housing support provided to the Executive, as set forth in Paragraph 3.6(a).  Any and all relocation expenses reimbursed to the Executive under this Paragraph 3.6(b) shall be subject to the Company’s requirements with respect to amounts, type, reporting and documentation of such expenses, as determined from time to time in the sole discretion of the Committee and/or the Board, as applicable.

 

3.7                               Benefits.  Executive shall be entitled to participate in all of the Company’s standard executive benefits in effect from time to time, as offered to other senior-level management personnel during the Employment Period.  Executive’s rights to these benefits cease upon termination of his employment and/or this Agreement for any reason.  Executive’s participation in the Company’s benefit programs is subject to plan eligibility requirements and in accordance with the Company’s policies governing these benefits.  These benefits currently include medical, dental, vision care (available the first of the month following your date of hire), 401(k) plan (available ninety (90) days after hire), life insurance, long-term disability (available ninety (90) days after hire), flexible spending account, tuition reimbursement program and product discount benefits.  The Company reserves the right to amend or cancel any such employee benefit plans at any time in its sole discretion, subject to the terms of such employee benefit plan and applicable law.

 

3.8                               Paid Time Off.  Executive is eligible for twenty (20) days of paid time off (“PTO”) per year in accordance with the terms and conditions of the Company’s PTO policy in effect from time to time.  PTO currently accrues at a rate of 6.15 hours bi-weekly.  PTO can be used for vacation, sick or personal time, in accordance with Company policy.

 

3.9                               Reimbursable Business Expenses.

 

(a)                                 The Company shall reimburse Executive for all reasonable expenses incurred by him in the course of performing the Services under this Agreement.  To be reimbursable, such expenses must be consistent with the Company’s policies in effect from time to time with respect to travel, entertainment and other business expenses, and will be subject to the Company’s requirements with respect to reporting and documentation of such expenses.

 

4

 

(b)                                 Beginning at the Start Date and continuing for the remainder of the Employment Period, Executive will be eligible to receive a monthly car allowance of $750.00, per month, minus any applicable taxes, which will be payable via payroll on the last regular pay date of each month that the Executive is employed.

 

4.                                      Termination of the Agreement.  Executive’s employment with the Company is and shall at all times remain “at will.”  Accordingly, this Agreement may be terminated at any time and for any reason, by either the Executive or the Company.  The termination of this Agreement shall also constitute the termination of Executive’s employment.  The terminating party must provide sixty (60) calendar days’ written notice of termination (the “Notice Period”) or, if applicable, the required notice of non-renewal under Paragraph 1.  The Company may, in its discretion, pay the Executive his Base Salary and any other compensation due during the Notice Period, in lieu of notice.  Unless otherwise provided in Paragraphs 4, 4.1, 4.2, 4.3, or 4.4, all of Executive’s rights to salary, benefits and bonuses hereunder (if any) shall cease upon termination of employment and/or the termination of this Agreement.  Upon termination of his employment for any reason, unless otherwise requested by the Company, Executive agrees to resign immediately from all officer and director positions he then holds with the Company and its subsidiaries or affiliates.  Notwithstanding the foregoing, the provisions of Paragraphs 6 through 6.6 shall continue in force in accordance with the provisions therein and shall survive the expiration or termination of the Term and this Agreement.

 

4.1                               Death or Disability.  This Agreement and Executive’s employment will immediately terminate upon Executive’s death or Disability (as defined in Paragraph 4.4).

 

4.2                               Severance Payment.  Notwithstanding the parties’ right to terminate this Agreement for any reason, in the event Executive’s employment is terminated by the Company without Cause (as defined in Paragraph 4.4) or the Executive terminates his employment for Good Reason (as defined in Paragraph 4.4), the Executive shall be entitled an amount equal to fifty-two (52) weeks of his then Base Salary (the “Severance Payment”), payable in regular installments in accordance with the Company’s general payroll practices and subject to applicable taxes and usual withholdings.

 

Executive shall not be entitled to the Severance Payment if he (a) leaves his employment with the Company for any reason other than Good Reason; (b) the Company terminates his employment for Cause; (c) his employment terminates by reason of his death or Disability or (d) this Agreement expires on its own terms.  In addition to the above, Executive will receive the Severance Payment if, and only if, (i) Executive has returned to the Company all Company property and Confidential Information (as defined in Paragraph 6.1), including the Company’s laptop computer, cellular phone and any other Company business equipment; and (ii) Executive has executed a written waiver and release of any and all employment-related and other claims in a standard form used by the Company (a “Release”).  Executive shall execute and deliver the Release within forty-five (45) days following the termination date, and Severance Payment will be made no earlier than sixty (60) days following the termination date presuming the Executive has executed, delivered and not revoked the Release (if a revocation period applies under applicable law).

 

5

 

4.3                               Good Reason Notification.  In the event that Executive believes that he has Good Reason to terminate this Agreement, Executive must notify the Company, in writing, of the Good Reason within thirty (30) days of the existence of each event constituting or giving rise to the Good Reason (“Good Reason Notification”).  Each event constituting or giving rise to the Good Reason requires Good Reason Notification.  The Good Reason Notification must specify in reasonable detail the circumstances claimed to give rise to Executive’s right to terminate his employment for Good Reason.  The Company shall have a period of forty-five (45) days from receipt of the Good Reason Notification (“Cure Period”) to correct the conduct or circumstance giving rise to the Good Reason.  If the Executive terminates his employment during the Cure Period, such termination is deemed without Good Reason and Executive will not be entitled to any Severance Payment.  If the Company fails to correct the conduct or circumstance giving rise to the Good Reason by the close of the Cure Period, and Executive wishes to terminate his employment, Executive must give notice of termination with seven (7) days following the end of the Cure Period.

 

4.4                               Definitions.  For the purposes of this Agreement:

 

(a)                                 “Cause” shall mean: (i) the commission of a felony, or a crime involving moral turpitude, or the commission of any other act or omission involving a breach of trust dishonesty, disloyalty, misappropriation or fraud; (ii) conduct tending to bring the Company into substantial public disgrace or disrepute; (iii) insubordination; (iv) gross negligence or willful misconduct; (v) the material breach of any written Company policy, including without limitation the Company’s Code of Ethics, insider trading policies or policies regarding employment practices, (vi) unauthorized failure to perform the Services after ten (10) business days’ notice and an opportunity to correct; or (vii) any other breach of this Agreement, including but not limited to the unauthorized disclosure or use of Confidential Information.

 

(b)                                 “Disability” shall mean that the Executive is incapacitated by accident, sickness or otherwise so as to render him mentally or physically incapable of performing the Services under this Agreement, with or without reasonable accommodation, for an aggregate of one hundred twenty (120) days during any twelve (12) month period.

 

(c)                                  “Good Reason” shall mean the occurrence of any of the following events, unless Executive has consented in writing thereto: (i) a non-performance-based and material (10% or greater) reduction in Executive’s base salary, STI target bonus, or participation in the LTIP, other than as part of a Company-wide reduction in compensation applicable to senior-level management personnel; or (ii) the Company’s material breach of the terms of this Agreement.

 

5.                                      Compliance with Section 409A.  If the termination giving rise to the payment described in Paragraph 4.2 is not a “Separation from Service” within the meaning of U.S. Treasury Regulation §1.409A-1(h)(1) (or any successor provision), then the amounts otherwise payable pursuant to that paragraph will instead be deferred without interest and will not be paid until Executive experiences a Separation from Service.  In addition, to the extent compliance with the requirements of U.S. Treasury Regulation §1.409A-3(i)(2) (or any successor provision) is necessary to avoid the application of an additional tax under Section 409A of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), to payments due to Executive upon or following his Separation from Service, then notwithstanding any other provision of this

 

6

 

Agreement (or any otherwise applicable plan, policy, agreement or arrangement), any such payments that are otherwise due within six months following Executive’s Separation from Service (taking into account the preceding sentence of this Paragraph 5) will be deferred without interest and paid to Executive in a lump sum immediately following that six-month period.  This Paragraph 5 should not be construed to prevent the application of U.S. Treasury Regulation §1.409A-1(b)(9)(iii)(or any successor provision) to amounts payable hereunder.  For purposes of the application of U.S. Treasury Regulation §1.409A-1(b)(4)(or any successor provision), each payment in a series of payments will be deemed a separate payment.

 

Notwithstanding anything in this Agreement to the contrary, to the extent an expense, reimbursement or in-kind benefit provided to Executive pursuant to this Agreement or otherwise constitutes a “deferral of compensation” within the meaning of Section 409A of the Code (i) the amount of expenses eligible for reimbursement or in-kind benefits provided to the Executive during any calendar year will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided to the Executive in any other calendar year, (ii) the reimbursements for expenses for which the Executive is entitled to be reimbursed shall be made on or before the last day of the calendar year following the calendar year in which the applicable expense is incurred, and (iii) the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit.

 

Notwithstanding the foregoing, the Company does not make any representation to the Executive that any payments made pursuant to this Agreement are exempt from, or satisfies, the requirements of Section 409A, and the Company shall have no liability or other obligation to indemnify or hold harmless the Executive or any beneficiary for any tax, additional tax, interest or penalties that the Executive or any beneficiary may incur in the event that any provision of this Agreement, or any amendment or modification thereof or any other action taken with respect thereto, is deemed to violate any of the requirements of Section 409A of the Code.

 

6.                                      Restrictive Covenants.

 

6.1                               Definitions.  The following terms are used extensively in this Agreement, and particularly in the following Paragraphs, and are hereby defined as follows:

 

(a)                                 “Confidential Information” shall mean all trade secrets, know-how or other confidential information not known to the public at large that Executive has obtained from the Company, or learned, discovered, developed, conceived, originated or prepared in the scope of his employment with the Company.  Confidential Information includes, but is not limited to, information and materials developed, collected or used by Company personnel, and information disclosed to the Company by Customers, potential Customers or third parties in the course of a business relationship or proposed business relationship.  Confidential Information includes, but is not limited to, the following general categories:

 

(i)                                     information concerning the Company’s operations, organizational structure, methods, technology, procedures, finances, accounting and legal matters;

 

7

 

(ii)                                  information concerning the Company’s sales activities and strategies, marketing activities and strategies, servicing activities and strategies, bidding activities and strategies, product development activities and strategies, expansion/acquisition or contraction/divestiture plans, reorganization plans and strategic business activities;

 

(iii)                               information concerning the Company’s past, present and potential Customers, including the names, addresses, telephone numbers and e-mail addresses of these customers; the identities of individuals responsible for buying products and services on behalf of these Customers; the needs and buying tendencies of these Customers; contract negotiations between the Company and these Customers; the contents and duration of contracts and agreement between the Company and these Customers; financial and credit information concerning these Customers’ business operations; the identity, quantity and prices of products and services purchased from the Company by these Customers; and any confidential information regarding a Customer which Executive has learned in the course of providing services to and/or for the Customer;

 

(iv)                              vendor, supplier or manufacturer information, including the names, addresses, telephone numbers and e-mail addresses of the Company’s vendors, suppliers or manufacturers; information regarding the Company’s relationship with its vendors, suppliers or manufacturers; contract negotiations between the Company and its vendors, suppliers or manufacturers; the contents and duration of contracts and agreements between the Company and its vendors, suppliers or manufacturers; financial and credit information concerning its vendors, suppliers or manufacturers; and the identity, quantity and prices of products and services purchased by the Company from its vendors, suppliers or manufacturers;

 

(v)                                 information regarding the Company’s pricing of its products and services, including price lists, pricing policies and pricing strategies;

 

(vi)                              employment and payroll data, including recruiting and succession plans; and

 

(vii)                           other information that the Company tells the Executive is to be kept confidential, or that the Executive should reasonably deem to be kept confidential.

 

Confidential Information may be contained on paper records, computer printouts or disks, or other forms of documentation or media, but it need not necessarily be reduced to a tangible form.  Confidential Information does not include information that, now or in the future, is available to the public (other than through improper disclosure by Executive or another person) or public information rightfully acquired from a third party.

 

8

 

(b)                                 “Customer” shall mean any person, firm or other business entity which, during the two (2) year period immediately preceding the termination of Executive’s employment with the Company: (1) has purchased or contracted for any type of services or products from or through the Company; (2) has contacted the Company or been contacted by the Company with respect to the availability or offering of the Company’s services or products and has requested or received a detailed proposal or offer from the Company; or (3) was assigned to Executive, either directly or indirectly, for supervisory responsibilities (including, without limitation, accounts where Executive participated in strategic and sales strategy sessions regarding the account, whether or not such sessions were conducted in conjunction with representatives of the account).

 

(c)                                  “The Company’s Business” shall mean the development, production, marketing and sales of branded juvenile safety and infant care products (targeted for ages 0-3 years), operating in one principal industry segment across geographically diverse marketplaces, selling products directly and indirectly on the Internet through third-party websites, the Company’s website, direct sales representatives and also through international distributors and representatives, globally, to large national retailers, independent retailers, and international retail customers, and includes, without limitation, the business of the Company and its subsidiaries as described in Part I, Item 1 (“Description of Business”) of the Parent’s most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission.

 

(d)                                 A “Competitor” is any person, corporation or other entity that produces, markets, and/or sells one or more product lines that are sold by, or are in development or production to be sold by, the Company, including, without limitation, branded juvenile safety and infant care products (targeted for ages 0-3 years), soft goods, monitors, baby gear and infant/toddler feeding products.

 

6.2                               Covenant Not to Disclose or Use Confidential Information.  Executive acknowledges that he has access to Confidential Information that must be maintained in strict confidence in order for the Company to protect its business and its competitive position in the marketplace.  Executive acknowledges that it is difficult to ascertain how long Confidential Information would remain useful to the Company’s competitors and potential competitors during his employment with the Company and thereafter, and that some Confidential Information may remain useful to the Company’s competitors for periods of indefinite duration.  Therefore, during Executive’s employment with the Company and thereafter, except as required in the performance of Executive’s duties to the Company, Executive will not directly or indirectly publish or disclose any Confidential Information to any competitor or other person outside the Company, and will not remove from the Company premises or use for his own benefit or otherwise appropriate or copy any Confidential Information.  This provision shall apply whether or not Executive developed the Confidential Information.

 

6.3                               Covenant Not to Work for a Competitor.  Given the nature of the Company’s business and his unique and exclusive position with the Company, Executive recognizes that engaging in employment or other work for a Competitor would necessarily and inevitably lead to his unauthorized use or disclosure of Confidential Information.  Accordingly, Executive agrees that he will not, directly or indirectly, work for a Competitor in the Company’s Business for a period beginning with the end of Executive’s employment with the Company (including any period of time Executive remains employed with the Company, with the

 

9

 

Company’s consent, following the expiration of the term of this Agreement) and extending for one (1) year thereafter.  This shall include work as an executive, officer, director, owner, shareholder, partner, associate, consultant, advisor, contractor, joint venturer, manager, agent, representative or salesperson.

 

Executive understands that the Company may, in its discretion, consider waiving this restriction completely or in part in unusual termination situations.  Executive recognizes that any waiver would be entirely voluntary on the Company’s part and based on the facts and circumstances of the termination, and will not serve as a precedent for other situations.

 

6.4                               Covenant Regarding Customers.

 

(a)                                 Executive acknowledges that the Company has a protectible business interest in its relationships with its Customers, and in the continued loyalty of its Customers.  Executive acknowledges that the Company seeks to maintain and/or promote its business with its Customers for an indefinite time period, even though there are a number of competitors with which they could do business.  Executive acknowledges that he has had, and will have, contact with the Customers (and will and has developed his knowledge regarding their on-going business needs) primarily, if not exclusively, as a result of his employment with the Company.

 

(b)                                 During the period of Executive’s employment with the Company (including any period of time Executive remains employed with the Company, with the Company’s consent, following the expiration of the term of this Agreement) and for one (1) year thereafter, Executive agrees not to compete or attempt to compete with the Company for the sale or procurement of services or products by or to any of the Customers (or any person or entity affiliated with them) with whom he had contact or knowledge of during the two (2) year period preceding the termination of his employment with the Company.  “Competing” includes, but is not limited to, calling on a customer, soliciting a Customer, diverting a Customer’s business from the Company, disparaging the Company or its Executives with a Customer, or otherwise interfering with or lessening the Company’s business with a Customer, even if a Customer initiates the contact.

 

(c)                                  During the period of Executive’s employment with the Company (including any period of time Executive remains employed with the Company, with the Company’s consent, following the expiration of the term of this Agreement) and for one (1) year thereafter, Executive agrees that he will not solicit or contact, or cause a Competitor to solicit or contact, directly or through other persons or entities, for the purpose of competing with the Company’s Business, any of the Customers (or any person or entity affiliated with them) with whom he had contact or knowledge of during the two (2) year period preceding the termination of his employment with the Company.

 

6.5                               Covenant Not to Solicit Employees and Consultants.  During the period of Executive’s employment with the Company (including any period of time Executive remains employed with the Company, with the Company’s consent, following the expiration of the term of this Agreement) and for one (1) year thereafter, Executive will not employ, solicit or endeavor to entice away from the Company (whether for his own business or on behalf of another person or entity) (1) any persons who are employed by the Company or who have been employed by the

 

10

 

Company within a one (1) year period prior to Executive’s solicitation; (2) any consultants utilized by the Company within a one (1) year period prior to Executive’s solicitation.  Executive further agrees not to directly or indirectly induce or solicit an employee of the Company to leave his or her employment with the Company.

 

6.6                               Inventions/Developments.  Executive agrees that he shall have no proprietary interest in any idea, invention, design, technical or business innovation, computer program and related documentation, or any other work product developed, conceived, or used by him, in whole or in part, that arises out of his employment with the Company, or that was otherwise made through the use of the Company’s time, facilities or materials (all collectively called “Developments”).  Executive acknowledges that all Developments are and shall be the sole property of the Company, and that the Company is not required to designate Executive as the author thereof.  Executive shall promptly disclose all Developments to the Company’s Chief Financial Officer, Chief Operating Officer, or Senior Vice President of Human Resources, and shall at the Company’s request and expense, do all things that may be necessary and appropriate to establish or document the Company’s ownership of the Developments (including, but not limited to, the execution of the appropriate copyright or patent applications or assignments).

 

6.7                               Business Opportunities.  Executive acknowledges that the foregoing restrictions will not unreasonably prevent him from obtaining gainful employment in his occupation or field of expertise, or otherwise cause him undue hardship.  Executive agrees that there are numerous other employment and business opportunities available to him in the geographic area reasonably near his place of residence that are not affected by these restrictions.  Executive acknowledges that these restrictions do not disproportionately benefit the Company, and are reasonable and necessary in order to protect the Company’s legitimate interests.  Executive acknowledges that the Company will rely on these restrictions now and in the future in assigning duties and responsibilities to him.  Executive agrees to make this Agreement known to any prospective employers before accepting new employment, and understands that the Company may make this Agreement known to such prospective employers or other persons.

 

7.                                      Non-Disparagement and Non-Publication.  Executive shall not, at any time, denigrate or disparage the Company, any member of the Board, or any Company officers.

 

8.                                      Legal Disclosure.  Notwithstanding the foregoing, no confidentiality, non-disparagement or other obligation owed by Executive to the Company or its subsidiaries or affiliates shall prohibit Executive from reporting, whether anonymously or on a disclosure basis, possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated under Section 21F of the Exchange Act or Section 806 of the Sarbanes-Oxley Act of 2002, as amended, or shall require Executive to notify the Company or its subsidiaries or affiliates of any such report, and none of the Company or any of its subsidiaries or affiliates will retaliate against Executive for any such report.  In making any such report, however, Executive is not authorized to disclose communications with counsel that were made for the purpose of receiving legal advice, that contain legal advice or that are protected by the attorney-work product or similar privilege.

 

9.                                      Confidential Information of Third Parties.  Executive confirms that he will not disclose to the Company, or use in the Company’s Business, or cause or induce others to use in

 

11

 

the Company’s Business, any information or materials that are confidential to any third party (including any of his prior employers or their clients) and that the Company does not otherwise have the right to use.

 

10.                               Non-Violation of Other Restrictive Covenants.  Executive confirms that his employment with the Company does not and will not violate any restrictive covenant or similar contractual provision (including, but not limited to, non-disclosure, non-competition or non-solicitation obligations) that he may have agreed to or is bound by with any prior employer or other third party.

 

11.                               Duties Upon Termination of Employment.

 

11.1                        Executive acknowledges that if he resigns his employment with the Company for any reason, the Company may need time to locate and train a replacement.  Thus, Executive agrees he will provide the Notice Period as set forth in Paragraph 4 of this Agreement, if he is resigning without Good Reason.  Executive will remain employed and fully cooperate with the Company for the Notice Period unless the Company instructs him to leave earlier and elects to pay him in in lieu of notice, as set forth in Paragraph 4.  If Executive is resigning with Good Reason, the notice provisions of Paragraph 4 and Paragraph 4.3 apply.

 

11.2                        During the Employment Period if so requested by the Company, and upon the termination of his employment with the Company for any reason, Executive agrees to promptly deliver to the Company any and/or all Company assets, files, documents, business records, notes, designs, data, manuals, equipment, keys, credit cards, cellular phones, lists of Customers, and any other Company materials of any nature (regardless of the medium in which they are contained and regardless of how they entered Executive’s possession or control) which are in his possession or control, including materials which contain or are derived from Confidential Information or Developments.  Following his termination with the Company for any reason, Executive will retain no copies, excerpts or summaries of any of the foregoing, nor shall he make arrangements to place any such items in the possession or control of others in advance of his termination.

 

11.3                        Executive understands that his responsibilities described above include an obligation to avoid any “clean-up” activities by him which might result in the loss of information of value to the Company.  He agrees that he will not, in connection with or anticipation of the termination of employment with the Company, throw out any documents or other Company materials nor will he attempt to delete, purge or clean out files, emails, text messages or any other items on any desktop, laptop or other computer, or cellular phone which he utilizes in connection with his work for the Company.

 

12.                               References to the Company.  The parties recognize that any and all references in this Agreement to the Company, Summer Infant, Inc. and/or Summer Infant (USA), Inc., shall include not only Summer Infant, Inc. and Summer Infant (USA), Inc., but also all of their current and future subsidiaries, divisions, and affiliates.

 

13.                               Notices.  Any notice provided for in this Agreement must be in writing and must be either personally delivered, mailed by first class mail (postage prepaid and return receipt

 

12

 

requested) or sent by reputable overnight courier service (charges prepaid) to the recipient at the address below indicated:

 

Notices to the Executive:

Mark Messner

1424 Eden Road

Lancaster, PA 17601

 

Notices to the Company:

1275 Park East Drive

Woonsocket, RI 02895

Attention:  Mark Strozik, SVP Human Resources

 

or to such other address or to the attention of such other person as the recipient party shall have specified by prior written notice to the sending party.  Any notice under this Agreement will be deemed to have been given when so delivered or sent or, if mailed, five days after deposit in the U.S. mail.

 

14.                               Other Agreements Regarding Remedies.

 

14.1                        Executive acknowledges that the Company has expended and continues to expend substantial time, money and effort to: (1) develop proprietary and commercially valuable Confidential Information and Developments; (2) locate Customers and to establish and maintain long term and near permanent business relationships with them; and (3) recruit, train and compensate its work force.  Executive understands that it would be extremely difficult to measure the damages that might result from any breach by him of this Agreement, and that a breach may cause irreparable injury to the Company that could not be compensated by money damages.

 

14.2                        If Executive violates any portion of Paragraphs 6.1 through 6.7 of this Agreement, then the covenants contained in the violated paragraph(s) will remain in force for one year after the violation ends.  In addition, if Executive violates any portion of Paragraphs 6.1 through 6.7, the Company may immediately stop any further severance payments to Executive to which Executive may be otherwise entitled; demand that Executive pay back to the Company within thirty (30) calendar days any severance payments already paid to Executive; and bring an action against Executive for all available legal and equitable relief, including for injunctive relief, compensatory and punitive damages, as well as liquidated damages in the amount of $10,000.00 for each violation by Executive of any portion of Paragraphs 6.1 through 6.7.

 

14.3                        Executive understands that this Agreement will be construed and enforced in accordance with Rhode Island law, without regard to its conflicts of law rules.  Executive agrees and understands that any and all suits to enforce or interpret the meaning of this Agreement shall be brought and adjudicated in state or federal courts in the State of Rhode Island.

 

14.4                        If a court decides that any part of this Agreement is not enforceable, then the rest of this Agreement will not be affected.  If a court decides that any part of this Agreement is too broad, then the court may limit that part and enforce it as limited.

 

13

 

14.5                        The non-breaching party (by court judgment, order, verdict or a private settlement) in an action to enforce Executive’s violation or threatened violation of this Agreement may recover from the breaching party the prevailing party’s costs, expenses, reasonable attorneys’ fees, and expert witness fees incurred in connection with any such action.

 

15.                               Clawback.  Notwithstanding anything in this Agreement to the contrary, Executive acknowledges that the Company may be entitled or required by law, the terms and conditions of the Company’s incentive compensation plans, the Company’s policy (the “Clawback Policy”) or the requirements of an exchange on which the Executive’s shares are listed for trading, to recoup compensation paid to the Executive pursuant to this Agreement or otherwise, and Executive agrees to comply with any Company request or demand for recoupment.  Executive acknowledges that the Clawback Policy may be modified from time to time in the sole discretion of the Company and without the consent of the Executive, and that such modification will be deemed to amend this Agreement.  Executive further acknowledges and agrees that the Clawback Policy as in effect from time to time shall apply to any and all payments of compensation and benefits (other than Employee’s base salary and benefits under any tax-qualified retirement plan or health and welfare plan) as specified in the Clawback Policy.

 

16.                               Change of Control.  Executive and Company shall, on the Start Date, enter into the Company’s standard Change of Control Agreement (“COC Agreement”), which provides that Executive will be entitled to certain payments and benefits if (a) there is a change in control of Parent; and (b) within twelve (12) months following a change in control, his employment is terminated, other than for cause, as a result of his or her death or disability, or by the Executive for good reason (as such terms are defined in the COC Agreement).  If the COC Agreement, by its terms is triggered, then with regard to any conflicting terms between the COC Agreement and this Agreement, the COC Agreement controls provided that, if Executive terminates his employment without Good Reason following a Change of Control, as defined in the COC Agreement, then with regard to any conflicting terms between the COC Agreement and this Agreement, this Agreement controls.  Other than as set forth in this Paragraph 16, all remaining terms and conditions of this Agreement constitute the agreement of the parties and remain in full force and effect.

 

17.                               Cooperation and Assistance in Proceedings.  During the Employment Period and thereafter, the Executive will cooperate with the Company in any internal investigation or administrative, regulatory or judicial proceeding as reasonably requested by the Company (including, without limitation, the Executive being available to the Company upon reasonable notice for interviews and factual investigations, appearing at the Company’s request to give testimony without requiring service of a subpoena or other legal process, volunteering to the Company all pertinent information and turning over to the Company all relevant documents which are or may come into the Executive’s possession, all at times and on schedules that are reasonably consistent with the Executive’s other permitted activities and commitments).  In the event the Company requires the Executive’s cooperation in accordance with this Paragraph 17 following termination of the Executive’s employment with the Company, the Company will pay the Executive a reasonable per diem as determined by the Board and reimburse the Executive for reasonable expenses incurred in connection therewith.

 

14

 

18.                               Miscellaneous.  Unless otherwise stated herein, this Agreement and the COC Agreement represent Executive’s entire understanding with the Company on the subjects covered therein, and supersede any prior understandings or agreements.  This Agreement may be changed only by a written agreement signed by the Company and Executive.  This Agreement is personal to Executive and he may not assign it.  The Company remains free to assign this Agreement, including without Executive’s knowledge or consent.  If the Company waives Executive’s breach of this Agreement, this will not constitute a waiver of any subsequent breaches.  Any waiver by the Company must be in writing and signed by the Company.

 

19.                               Effective Date.  The Effective Date of this Agreement shall be the last date that either party to this Agreement executes the party’s signature to this Agreement.

 

[Signature page follows]

 

15

 

EXECUTIVE ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT IN ITS ENTIRETY.  EXECUTIVE UNDERSTANDS THAT THIS AGREEMENT IS LEGALLY ENFORCEABLE.  EXECUTIVE ACKNOWLEDGES THAT HE HAS HAD THE OPPORTUNITY TO CONFER WITH ANYONE OF HIS CHOICE CONCERNING THIS AGREEMENT.  BY SIGNING BELOW, EXECUTIVE ACKNOWLEDGES THAT HE IS ENTERING THIS AGREEMENT VOLUNTARILY AND INTENDS TO BE BOUND BY IT.

 

 

	
Executive:
    	
 
    	
Company:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Mark Messner
    	
 
    	
/s/ Mark Strozik
    
	
Mark Messner
    	
 
    	
Mark Strozik, SVP Human   Resources
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
6-24-16
    	
 
    	
6-27-2016
    
	
Date
    	
 
    	
Date
    

 

16Exhibit

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

	
	
	Execution

SHARE REPURCHASE AGREEMENT
between
IMPERIAL CORPORATE SERVICES PROPRIETARY LIMITED
and
IMPERIAL HOLDINGS LIMITED
and
MIX TELEMATICS LIMITED

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

TABLE OF CONTENTS
		
	1
	PARTIES    1

		
	2
	INTERPRETATION    1

		
	3
	INTRODUCTION    6

		
	4
	CONDITIONS PRECEDENT    6

		
	5
	REPURCHASE    9

		
	6
	PAYMENT OF REPURCHASE CONSIDERATION    9

		
	7
	CLOSING    10

		
	8
	WARRANTIES BY THE SELLER    10

		
	9
	CONFIDENTIALITY, RESTRAINT AND NON-SOLICITATION UNDERTAKINGS    11

		
	10
	PREFERRED SUPPLIER STATUS    17

		
	11
	GENERAL WARRANTIES    18

		
	12
	PUBLICITY    19

		
	13
	BREACH    20

		
	14
	DISPUTE RESOLUTION    21

		
	15
	NOTICES AND DOMICILIA    22

		
	16
	BENEFIT OF THE AGREEMENT    23

		
	17
	APPLICABLE LAW AND JURISDICTION    23

		
	18
	GENERAL    23

		
	19
	COSTS    25

		
	20
	SIGNATURE    25

 
 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 1

		
	1
	PARTIES

1.1The Parties to this Agreement are –
		
	1.1.1
	Imperial Corporate Service Proprietary Limited;

		
	1.1.2
	Imperial Holdings Limited; and

		
	1.1.3
	MiX Telematics Limited.

1.2The 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 this share repurchase agreement;

		
	2.1.3
	"Company" means MiX Telematics Limited, registration number 1995/013858/06, a limited liability public company duly incorporated in South Africa, the ordinary shares of which are listed on the JSE;

		
	2.1.4
	"Companies Act" means the Companies Act, No 71 of 2008;

		
	2.1.5
	"Conditions Precedent" means the suspensive conditions set out in clause 4.1;

		
	2.1.6
	"Closing Date" means the 7th (seventh) business day after the Fulfilment Date;

		
	2.1.7
	"CSDP" means a nominated depository institution or central securities depository participant as contemplated in the Financial Markets Act;

		
	2.1.8
	"Financial Markets Act" means the Financial Markets Act, No 19 of 2012;

		
	2.1.9
	"First Fulfilment Date" means 30 June 2016;

		
	2.1.10
	"Fulfilment Date" means the date upon which the last of the Conditions Precedent are fulfilled or waived, as the case may be;

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 2

		
	2.1.11
	"Imperial" means Imperial Holdings Limited, registration number 1946/021048/06, a limited liability public company duly incorporated in South Africa, the ordinary shares of which are listed on the JSE;

		
	2.1.12
	"JSE" means the securities exchange licensed in terms of the Financial Markets Act, owned and operated by JSE Limited, registration number 2005/022939/06, a limited liability public company duly incorporated in South Africa;

		
	2.1.13
	"Listings Requirements" means the JSE Limited Listings Requirements, as amended;

		
	2.1.14
	"Panel" means the Takeover Regulation Panel established in terms of section 196 of the Companies Act;

		
	2.1.15
	"Parties" means the parties identified in clause 1.1, and "Party" shall refer to any one of them as the context may require;

		
	2.1.16
	"Prime Rate" means the publicly quoted basic rate of interest, compounded monthly in arrears and calculated on a 365 (three hundred and sixty five) day year irrespective of whether or not the year is a leap year, from time to time published by the Company's principal bankers as being its prime overdraft rate, as certified by any representative of that bank whose appointment and designation it will not be necessary to prove;

		
	2.1.17
	"Repurchase" means the repurchase, as contemplated in section 48 of the Companies Act, of the Repurchase Shares by the Company from the Seller in terms of this Agreement;

		
	2.1.18
	"Repurchase Consideration" means an amount of R2.36 (two rand and thirty six cents) per Repurchase Share, being an aggregate amount of R473,954,694 (four hundred and seventy three million nine hundred and fifty four thousand six hundred and ninety four rand) in respect of all of the Repurchase Shares held by the Seller;

		
	2.1.19
	"Repurchase Shares" means 200,828,260 (two hundred million eight hundred and twenty eight thousand two hundred and sixty) ordinary shares in the Company held by the Seller; 

		
	2.1.20
	"Second Fulfilment Date" means 31 August 2016;

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 3

		
	2.1.21
	"Securities Transfer Tax" means securities transfer tax levied in terms of the Securities Transfer Tax Act, No 25 of 2007;

		
	2.1.22
	"Seller" means Imperial Corporate Services Proprietary Limited, registration number 1996/005091/07, a limited liability private company duly incorporated in South Africa; 

		
	2.1.23
	"Seller Group" means Imperial and its subsidiaries; 

		
	2.1.24
	"Seller's CSDP Account" means the following securities account –

	
		
	Account name:
	Imperial Corporate Services

	Account number:
	754036

	CSDP:
	Standard Bank

	Contact person:
	Magaretha Taylor (011) 858 6532

	SCA/Bank CSD account number:
	ZA100086

	Scrip account number:
	120025520003

	Settlement bank account number:
	201114755

		
	2.1.25
	"Seller's Designated Account" means the South African rand denominated bank account nominated by the Seller, the details of which are set out below, or such other South African account as the Seller may designate in writing on 5 (five) business days' notice to the Company –

	
		
	Name of Account
	Imperial Group Ltd – Treasury

	Bank:
	Nedbank Limited

	Branch:
	Edenvale

	Branch Code:
	191042

	Account Number:
	1910176486

		
	2.1.26
	"Signature Date" means the date of signature of this Agreement by the Party last signing; and

		
	2.1.27
	"South Africa" means the Republic of South Africa.

		
	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;

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 4

		
	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 –

		
	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 South Africa from time to time; and

		
	2.3.3
	a reference to a "subsidiary" company or "subsidiaries" shall bear the meaning ascribed to it by the Companies Act.

		
	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.

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 5

		
	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.

		
	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 immediately preceding 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 any of the Parties 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" refer to clauses of this Agreement.

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 6

		
	3
	INTRODUCTION

		
	3.1
	The Company wishes to repurchase the Repurchase Shares from the Seller, and the Seller has agreed to sell the Repurchase Shares to the Company.

		
	3.2
	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 4 and clauses 11 to 20, all of which will become effective immediately, this Agreement is subject to the fulfilment of the Conditions Precedent that –

		
	4.1.1
	by no later than the First Fulfilment Date, the board of directors of the Company have (i) approved the Repurchase having, in terms of section 48(2) as read with section 46 of the Companies Act, applied the solvency and liquidity test (as envisaged in section 4 of the Companies Act) in respect of the Repurchase and having reasonably concluded that the Company will satisfy the solvency and liquidity test immediately after implementation of the Repurchase, (ii) made the statements referred to in paragraph 5.69(c) of the Listings Requirements, and (iii) approved the entering into of this Agreement by the Company;

		
	4.1.2
	by no later than 60 (sixty) days following the Signature Date, Mark Lamberti has delivered a written resignation to the Company in terms of which he resigns as a director of the Company with effect from, and subject to achievement of the Fulfilment Date and confirming that he waives all claims, whether in contract or in delict, actual or contingent, that he may have against the Company;

		
	4.1.3
	by no later than 60 (sixty) days following the Signature Date, George Nakos has delivered a written resignation to the Company in terms of which he resigns as an alternate director to Mark Lamberti with effect from, and subject to achievement of the Fulfilment Date and confirming that he waives all claims, whether in contract or in delict, actual or contingent, that he may have against the Company;

		
	4.1.4
	by no later than the Second Fulfilment Date, the Company has obtained all such approvals for the Repurchase as may be required from the JSE and the Panel;

		
	4.1.5
	by no later than the First Fulfilment Date, the Company has received a report  incorporating a fairness opinion under the Listings Requirements, prepared by an 

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 7

independent expert in respect of the Repurchase, as contemplated in section 114 of the Companies Act and the Listings Requirements (which report will be distributed to the shareholders of the Company under the circular convening the meeting contemplated in clause 4.1.6);
		
	4.1.6
	by no later than the Second Fulfilment Date, the ordinary shareholders of the Company in general meeting have –

		
	4.1.6.1
	approved the Repurchase, as required by the Listings Requirements and section 48(8)(b) of the Companies Act, by way of a special resolution adopted in accordance with the requirements of sections 114 and 115 of the Companies Act ("Authorising Resolution"); and

		
	4.1.6.2
	by way of a special resolution, resolved that the Authorising Resolution is revoked with effect from the date on which the Condition Precedent in clause 4.1.7 ("Appraisal Rights CP") and/or clause 4.1.8 is not fulfilled or waived;

		
	4.1.7
	by not later than the Second Fulfilment Date, in the event that any shareholder/s of the Company ("Dissenting Shareholder/s") who satisfy the requirements of section 164(5) of the Companies Act, have made a demand contemplated in that section by delivering a written notice ("Section 164(5) Notice") to the Company within 20 (twenty) business days after receiving a notice from the Company under section 164(4) of the Companies Act, such Dissenting Shareholder/s hold 1% (one percent) or less of the issued ordinary shares of the Company, provided that –

		
	4.1.7.1
	this Condition Precedent will be deemed to have been fulfilled in the event that any Dissenting Shareholder/s withdraw the Section 164(5) Notice in terms of section 164(9)(a) of the Companies Act such that the Dissenting Shareholders who have not so withdrawn their Section 164(5) Notice hold 1% (one percent) or less of the issued ordinary shares of the Company, or the offer made by the Company lapses as contemplated in section 164(12)(b) of the Companies Act prior to the Second Fulfilment Date; 

		
	4.1.7.2
	this Condition Precedent will be deemed to have failed (that is, not to have been fulfilled) in the event that the Company makes an offer to the Dissenting Shareholder/s under section 164(11) of the Companies Act at a price equivalent to the Repurchase Consideration per share held by the Dissenting Shareholder/s and any Dissenting Shareholder applies to the court as contemplated in section 

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 8

164(14)(b) of the Companies Act to determine that the said offer made by the Company does not constitute fair value;
		
	4.1.8
	by no later than the Second Fulfilment Date, in the event that the provisions of section 115(3) of the Companies Act become applicable and are timeously invoked, the Authorising Resolution is approved by a court as contemplated in that section, provided that this Condition Precedent will be deemed to have been fulfilled in the event that no person who voted against the resolution has required the Company to seek court approval in terms of section 115(3)(a) of the Companies Act and no court has granted any person leave to apply for a review in terms of section 115(3)(b) of the Companies Act, within the time periods provided for in those sections.

		
	4.2
	The Parties will, to the extent within their control, use their commercially reasonable 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 Company shall be entitled to waive the –

		
	4.3.1
	Appraisal Right CP in whole or in part at any time prior to the Second Fulfilment Date by notice in writing to the Seller;

		
	4.3.2
	Condition Precedent in clause 4.1.8 on condition that the court approves the special resolution in terms of section 115(3) of the Companies Act.

		
	4.4
	Subject to clause 4.3, the Parties may at any time agree in writing to –

		
	4.4.1
	extend the date/s for fulfilment of any or all of the Conditions Precedent, and such agreement shall operate to extend the said date/s accordingly; and/or

		
	4.4.2
	waive the Conditions Precedent, to the extent that they are capable of being waived.

		
	4.5
	Unless all of the Conditions Precedent have been fulfilled or waived by the Parties in writing by not later than the time and date for fulfilment thereof set out in clause 4.1, or such later date as may be agreed in writing between the Parties, the provisions of this Agreement, save for clauses 1 to 4 and clauses 11 to 20, 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 possible and none of the Parties will have any claim against the others in terms hereof or arising from the failure of the Conditions Precedent, save for any claims arising from a breach of clause 4.2.

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 9

		
	5
	REPURCHASE

		
	5.1
	With effect from the Closing Date, the Seller hereby sells the Repurchase Shares, as one indivisible transaction, to the Company, which hereby purchases the Repurchase Shares from the Seller, as a repurchase of shares in terms of section 48 of the Companies Act. 

		
	5.2
	Notwithstanding the Signature Date and the Fulfilment Date, all risk in and all benefit attaching to the Repurchase Shares will, against payment of the full Repurchase Consideration, pass to the Company on the Closing Date.

		
	5.3
	Possession and effective control of the Repurchase Shares will be given to the Company on the Closing Date.

		
	5.4
	The Repurchase Shares are sold ex any dividend which is declared following the Signature Date, the record date for which falls prior to the Closing Date.

		
	5.5
	The Company shall be entitled to assign some or all of its rights and obligations as purchaser under this Agreement to any subsidiary of the Company by notice in writing to the Seller, provided that -

		
	5.5.1
	such subsidiary purchaser binds itself in writing to all the terms and conditions herein imposed on the Company by signing a deed of adherence to this Agreement in a form reasonably acceptable to the Seller; and

		
	5.5.2
	the Company guarantees, as surety for and co-principal debtor in solidum with such subsidiary purchaser, the due and proper compliance by such subsidiary purchaser with all the terms and conditions herein imposed on the Company,

whereupon any reference in this Agreement to the "Company" (save for clauses 5.5.1 and 5.5.2) will be deemed to include a reference to such subsidiary purchaser, as applicable.
		
	6
	PAYMENT OF REPURCHASE CONSIDERATION

		
	6.1
	The Repurchase Consideration will be paid to the Seller in full on the Closing Date against compliance by the Seller with clause 7.

		
	6.2
	Payment of the Repurchase Consideration shall take place by electronic transfer of immediately available and freely transferable funds, free of any deductions or 

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 10

set-off whatsoever, in the currency of South Africa to the Seller's Designated Account.
		
	6.3
	If any amount which is due and payable in accordance with the provisions of this Agreement is not paid or discharged on the due date therefor, the outstanding amount shall bear interest at the Prime Rate plus 2 (two) percentage points, calculated on and with effect from the due date thereof up to and including the date of actual payment or discharge thereof (both dates inclusive).

		
	7
	CLOSING

		
	7.1
	It is recorded that the Repurchase Shares are listed on the JSE.

		
	7.2
	Accordingly, the Parties agree that the transfer of the Repurchase Shares from the Seller to the Company will be effected by way of an off-market trade.  The Parties agree that by no later than 2 (two) business days before the Closing Date, the Seller shall –

		
	7.2.1
	furnish to the Seller's CSDP or broker a written irrevocable instruction to debit or procure the debiting of the Seller's CSDP Account with the Repurchase Shares, against payment of the Repurchase Consideration on the Closing Date in accordance with clause 6, on a delivery versus payment basis; and

		
	7.2.2
	procure that the Seller's CSDP or broker provides the Company with written confirmation (i) to the effect that the Seller has given the irrevocable instruction envisaged in clause 7.2.1 and (ii) confirming that it will give effect to the Seller's said instruction.

		
	8
	WARRANTIES BY THE SELLER

		
	8.1
	The Seller hereby represents and warrants to and in favour of the Company, that on the Closing Date –

		
	8.1.1
	the Seller is the sole registered holder, and the beneficial owner, of the Repurchase Shares; and

		
	8.1.2
	the Seller is entitled and able to transfer free and unencumbered title in and to the Repurchase Shares in terms of this Agreement; and

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 11

		
	8.1.3
	the Seller has no claim against the Company or any subsidiary of the Company, other than claims for payment arising in the ordinary course of business.

		
	8.2
	Each warranty contained in clause 8.1 will –

		
	8.2.1
	be a separate warranty and will in no way be limited or restricted by inference from the terms of any other warranty or by any other words in this Agreement;

		
	8.2.2
	continue and remain in force notwithstanding the completion of any or all the transactions contemplated in this Agreement; and

		
	8.2.3
	prime facie be deemed to be material and to be a material representation inducing the Company to enter into this Agreement.

		
	8.3
	Save for those warranties expressly given or made in this Agreement, no warranties are given or made in respect of the Repurchase Shares or any other matter whatsoever, whether express, tacit or implied.

		
	9
	CONFIDENTIALITY, RESTRAINT AND NON-SOLICITATION UNDERTAKINGS

		
	9.1
	For the purpose of this clause 9, unless the context indicates a contrary intention, the following words and expressions bear the meanings assigned to them and cognate expressions bear corresponding meanings -

		
	9.1.1
	"Business" means the businesses conducted by the Company as at the Signature Date, being the provision of products and services through a software as a service (Saas) model ("Products and Services") for purposes of enabling –

		
	9.1.1.1
	tracking and stolen vehicle recovery;

		
	9.1.1.2
	consumer telematics in respect of driver behaviour (drive style management) and personal safety (medical and accident response); and

		
	9.1.1.3
	commercial vehicle telematics and fleet management, focussing on efficiency, security, safety and compliance; 

		
	9.1.2
	"Business Employee/s" means the persons listed below:

		
	9.1.2.1
	Brendan Horan;

		
	9.1.2.2
	Gert Pretorius;

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 12

		
	9.1.2.3
	***;

		
	9.1.2.4
	***;

		
	9.1.2.5
	***;

		
	9.1.2.6
	***;

		
	9.1.2.7
	***;

		
	9.1.2.8
	***;

		
	9.1.2.9
	***;

		
	9.1.2.10
	***;

		
	9.1.2.11
	***;

		
	9.1.2.12
	***;

		
	9.1.2.13
	***;

		
	9.1.2.14
	***;

		
	9.1.2.15
	***;

		
	9.1.2.16
	***;

		
	9.1.2.17
	***;

		
	9.1.2.18
	***;

		
	9.1.2.19
	***;

		
	9.1.2.20
	***;

		
	9.1.2.21
	***;

		
	9.1.3
	"Company" includes the subsidiaries of the Company;

		
	9.1.4
	"Confidential Information" means any information or data relating to the Company or the Business (even if not marked as being confidential, restricted, secret, proprietary or any similar designation), in whatever format and whether recorded 

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 13

or not (and if recorded, whether recorded in writing, on any electronic medium or otherwise), which –
		
	9.1.4.1
	by its nature or content is identifiable as confidential and/or proprietary to the Company; or

		
	9.1.4.2
	is intended or by its nature or content could reasonably be expected to be confidential and/or proprietary to the Company;

		
	9.1.5
	"Restrainees" means the Seller, Imperial and Imperial's subsidiaries. Imperial hereby undertakes to procure that its subsidiaries are bound by, and adhere to, the provisions of this clause 9;

		
	9.1.6
	"Restraint Period" means the period of 24 (twenty four) months, commencing on the Closing Date;

		
	9.1.7
	"Restricted Business" means any business which operates in competition with the Business;

		
	9.1.8
	"Territory" means collectively or individually, as the case may be, the following areas –

		
	9.1.8.1
	each province of South Africa; and

		
	9.1.8.2
	each magisterial district in South Africa.

Confidentiality Undertakings
		
	9.2
	Each Restrainee acknowledges that –

		
	9.2.1
	the Confidential Information is a valuable, special and unique asset of the Company; and

		
	9.2.2
	the Company may suffer irreparable harm or substantial economic and other loss in the event of such Confidential Information being disclosed or used by the Restrainee.

		
	9.3
	Each Restrainee irrevocably and unconditionally agrees and undertakes for a period of 36 (thirty six) months from the Closing Date –

		
	9.3.1
	not to use the Confidential Information, whether directly or indirectly –

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 14

		
	9.3.1.1
	for the Restrainee's benefit; or

		
	9.3.1.2
	for the benefit of any person other than the Company;

		
	9.3.2
	to treat and safeguard the Confidential Information as strictly private and confidential;

		
	9.3.3
	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; and

		
	9.3.4
	not to decompile, disassemble or reverse engineer or otherwise modify, adapt, alter or vary the whole or any part of the Confidential Information.

		
	9.4
	Subject to the provisions of clause 9.5, the undertakings given by the Restrainees in clause 9.3 shall not apply to any Confidential Information which –

		
	9.4.1
	is or becomes generally available to the public other than by the negligence or default of any of the Restrainees or by the breach of this clause 9 by any of the Restrainees;

		
	9.4.2
	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

		
	9.4.3
	is disclosed pursuant to a requirement or request by operation of applicable laws, to the extent of compliance with such requirement or request only and not for any other purpose,

provided that –
		
	9.4.4
	the onus shall at all times rest on the Restrainee to establish that such information falls within such exclusions;

		
	9.4.5
	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 Restrainee's possession; and

		
	9.4.6
	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 

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 15

Restrainee's possession, but only if the combination itself is in the public domain or in the Restrainee's possession.
		
	9.5
	In the event that a Restrainee is required to disclose information relating to the Company pursuant to clause 9.4.3, it shall -

		
	9.5.1
	advise the Company thereof prior to disclosure, if possible;

		
	9.5.2
	take such steps to limit the disclosure to the extent that it lawfully and reasonably can;

		
	9.5.3
	afford the Company a reasonable opportunity, if possible, to intervene in the proceedings; and

		
	9.5.4
	comply with the Company's reasonable requests as to the manner and terms of any such disclosure.

Restraint Undertaking
		
	9.6
	Each Restrainee, in order to protect the goodwill and the proprietary interests of the Purchaser in the Business, undertakes and warrants that it shall not during the Restraint Period, subject to the exclusions set out in clause 9.7, (a) acquire any direct or indirect interest in an entity which conducts any Restricted Business in the Territory, or acquire any assets or undertaking which comprise or undertake the Restricted Business; and (b) undertake any manufacturing activities which would be in direct competition with the activities of the Business.

		
	9.7
	Nothing contained in this Agreement shall prevent -

		
	9.7.1
	the businesses operated under the name and style of "Resolve" and "Liquid Capital" from continuing their business of using telematics information in the field of transport and logistics management and/or conducting any activities which it presently conducts as at the Signature Date;

		
	9.7.2
	MotorHappy Proprietary Limited ("MotorHappy") from engaging in direct above the line marketing, allowing third party Products and Service providers on MotorHappy's panels or platforms, provided that the Company is included in the panel or platform, where such panel or platform applies to Products or Services;

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 16

		
	9.7.3
	the Restrainees continuing to abide by agreements in force, arrangements and/or initiatives in place as at 17 March 2016 in relation to Products and Services; and

		
	9.7.4
	the Restrainees from embedding, selling and/or administering passenger or commercial Original Equipment Manufacturer branded products.

		
	9.8
	Each Restrainee, after due consideration, agrees and acknowledges that -

		
	9.8.1
	in order to protect the value of the Company and the Confidential Information which is proprietary to the Company, it is necessary that the Restrainee be restrained from carrying on certain activities which would be harmful to the Company and/or the Business, and that such restraint must be for a period which will adequately serve to protect the Company from the considerable economic prejudice and substantial and irreversible damage which would potentially be suffered by the Company were the Restrainee not to be so restrained;

		
	9.8.2
	having regard to the damages that will result from a breach of any of the restraint undertakings herein given, the restraints and undertakings imposed upon each Restrainee in terms of this clause 9 are fair and reasonable and are necessary as to subject matter, area and duration and are reasonably necessary in order to preserve and to protect the proprietary interests of the Company;

		
	9.8.3
	as a result of the Repurchase, it has derived and/or will derive, directly or indirectly, substantial or commensurate benefit;

		
	9.8.4
	notwithstanding the manner in which the restraints in this clause, and the areas comprising the Territory, have been grouped together or described geographically, each of them constitutes a separate and independent restraint, divisible and severable from each of the other restraints and separately enforceable, in regard to all aspects thereof including –

		
	9.8.4.1
	each month of the Restraint Period;

		
	9.8.4.2
	each state, province, division or council area, municipal area, magisterial district, town and locality falling within the Territory; and

		
	9.8.4.3
	each capacity in relation to the Restricted Business which the Restrainee is prohibited from undertaking in terms of this Agreement.

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 17

Non-solicitation Undertaking
		
	9.9
	Each Restrainee, in order to protect the goodwill and the proprietary interests of the Company and the Business, undertakes and warrants that it shall not for a period of 24 (twenty four) months from the Closing Date –

		
	9.9.1
	communicate with or furnish any information or advice to any Business Employee or to any prospective employer of such Business Employee for the purpose of inducing or causing a Business Employee to leave the employ of the Company and/or become employed by or interested in or associated with any Restricted Business; 

		
	9.9.2
	persuade, induce, solicit, encourage or cause any Business Employee to terminate his employment with the Company and/or become employed by or interested in any manner whatever in any Restricted Business, or attempt to do so;

		
	9.9.3
	employ, offer employment to or cause employment to be offered to any Business Employee, or attempt to do so.

		
	9.10
	Each Restrainee agrees that should it at any time dispute the reasonableness of any of the restraint, confidentiality or non-solicitation undertakings herein contained, then the onus of proving such unreasonableness shall be on such Restrainee.

		
	9.11
	The undertakings given by each Restrainee in this clause 9 shall be for the benefit of and may be enforced by the Company and any successors-in-title. The fact that any restraint undertaking may not be enforceable by one of them will not affect its enforceability by any other party.

		
	9.12
	For the purposes of clause 9.11, the term "successors-in-title" shall include any third party who or which acquires –

		
	9.12.1
	the Business or any part thereof, as a going concern; or

		
	9.12.2
	pursuant to any cession, the right to enforce the restraints embodied in this clause 9.

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 18

		
	10
	PREFERRED SUPPLIER STATUS

		
	10.1
	Imperial acknowledges that the Company has expertise and experience in the development and sale of products and services ("Products and Services") through a software as a service (Saas) model for purposes of enabling –

		
	10.1.1
	tracking and stolen vehicle recovery;

		
	10.1.2
	consumer telematics in respect of driver behaviour (drive style management) and personal safety (medical and accident response); and

		
	10.1.3
	commercial vehicle telematics and fleet management, focussing on efficiency, security, safety and compliance. 

		
	10.2
	Notwithstanding the Repurchase it is the intention of the Parties that the Company and its subsidiaries will have preferred supplier status with the Seller Group within the Territory, such that –

		
	10.2.1
	the Seller Group undertakes to afford the Company and its subsidiaries (where applicable) a reasonable opportunity to bid for and be considered for the supply of Products and Services should the Seller Group require Products and Services at any time, it being recorded that the Seller Group shall remain entitled to engage with third party suppliers and that the Company and its subsidiaries will not be the Seller Group's exclusive suppliers of the Products and Services; 

		
	10.2.2
	the Seller Group and the Company shall discuss the technical specifications required in respect of the Products and Services in order that the Company and its subsidiaries (where applicable) may adapt the Products and Services to best service the Seller Group, and in order for the Company and its subsidiaries (where applicable) to maintain its high level of service excellence to the Seller Group; and

		
	10.2.3
	the Products and Services will be provided to the Seller Group on arm's-length, market-related terms to be negotiated in good faith at the time thereof.

		
	10.3
	Imperial shall procure due and proper compliance by its subsidiaries with the provisions of this clause 10. 

		
	10.4
	The undertakings in this clause 10 shall continue in force for a period of 36 (thirty six months) from the Closing Date.

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 19

		
	11
	GENERAL WARRANTIES

		
	11.1
	Each of the Parties hereby warrants to and in favour of the others that –

		
	11.1.1
	it has the legal capacity and has taken all necessary corporate action required to empower and authorise it to enter into this Agreement;

		
	11.1.2
	this Agreement constitutes an agreement valid and binding on it and enforceable against it in accordance with its terms;

		
	11.1.3
	the execution of this Agreement and the performance of its obligations hereunder does not and shall not –

		
	11.1.3.1
	contravene any law or regulation to which that Party is subject;

		
	11.1.3.2
	contravene any provision of that Party's constitutional documents; or

		
	11.1.3.3
	conflict with or constitute a breach of any of the provisions of any other agreement, obligation, restriction or undertaking which is binding on it;  and

		
	11.1.4
	to the best of its knowledge and belief, it is not aware of the existence of any fact or circumstance that may impair its ability to comply with all of its obligations in terms of this Agreement; 

		
	11.1.5
	it is entering into this Agreement as principal (and not as agent or in any other capacity);

		
	11.1.6
	the natural person who signs and executes this Agreement on its behalf is validly and duly authorised to do so;

		
	11.1.7
	no other party is acting as a fiduciary for it;  and

		
	11.1.8
	it is not relying upon any statement or representation by or on behalf of any other Party, except those expressly set forth in this Agreement.

		
	11.2
	Each of the representations and warranties given by the Parties in terms of clause 11.1 shall –

		
	11.2.1
	be a separate warranty and will in no way be limited or restricted by inference from the terms of any other warranty or by any other words in this Agreement;

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 20

		
	11.2.2
	continue and remain in force notwithstanding the completion of any or all the transactions contemplated in this Agreement; and

		
	11.2.3
	prima facie be deemed to be material and to be a material representation inducing the other Parties to enter into this Agreement.

		
	12
	PUBLICITY

		
	12.1
	Subject to clause 12.3, each Party undertakes to keep confidential and not to disclose to any third party, save as may be required in law and/or by the rules of any recognised securities exchange, where applicable, or permitted in terms of this Agreement, the nature, content or existence of this Agreement and the terms and contents thereof and any and all information given by a Party to the other Parties pursuant to this Agreement.

		
	12.2
	No public announcements of any nature whatsoever will be made by or on behalf of a Party relating to this Agreement and the terms and contents thereof without the prior written consent of the other Parties, save for any announcement or other statement required to be made in terms of the provisions of any law or by the rules of any recognised securities exchange, in which event the Party obliged to make such statement will first consult with the other Parties in order to enable the Parties in good faith to attempt to agree the content of such announcement, which (unless agreed) must go no further than is required in terms of such law or rules.  This will not apply to a Party wishing to respond to any other Party which has made an announcement of some nature in breach of this clause 12.

		
	12.3
	This clause 12 shall not apply to any disclosure made by a Party to its professional advisors or consultants or to any of its bankers, financiers or potential financiers or to any potential investor in the Company or in any business of the Company, provided that they have agreed to the same confidentiality undertakings, or to any judicial or arbitral tribunal or officer, in connection with any matter relating to this Agreement or arising out of it.

		
	13
	BREACH

		
	13.1
	If a Party ("Defaulting Party") commits any breach of this Agreement and fails to remedy such breach within 5 (five) business days ("Notice Period") of written notice requiring the breach to be remedied, then the Party giving the notice ("Aggrieved Party") will be entitled, at its option –

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 21

		
	13.1.1
	to claim immediate specific performance of all or any of the Defaulting Party's obligations under this Agreement, with or without claiming damages, whether or not such obligation has fallen due for performance; or

		
	13.1.2
	if the breach occurs prior to the fulfilment or waiver, as the case may be, of the Conditions Precedent, to cancel this Agreement, with or without claiming damages, in which case written notice of the cancellation shall be given to all of the Parties, and the cancellation shall take effect on the giving of the notice.

		
	13.2
	The Aggrieved Party's remedies in terms of this clause 13 are without prejudice to any other remedies to which the Aggrieved Party may be entitled in law.

		
	13.3
	Notwithstanding the aforegoing, on and after the Closing Date, none of the Parties will have the right to cancel this Agreement as a result of a breach thereof, and the Parties' only remedies thereafter will be to claim specific performance of all the Defaulting Party's obligations and/or damages, if any.

		
	14
	DISPUTE RESOLUTION

		
	14.1
	In the event of there being any dispute or difference between all or some of the Parties arising out of this Agreement, the said dispute or difference shall on written demand by any Party be submitted to arbitration in Johannesburg in accordance with the AFSA rules, which arbitration shall be administered by AFSA.

		
	14.2
	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.

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 22

		
	14.3
	Any party to the arbitration may appeal the decision of the arbitrator or arbitrators in terms of the AFSA rules for commercial arbitration.

		
	14.4
	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.

		
	14.5
	Any arbitration in terms of this clause 14 (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.

		
	14.6
	This clause 14 will continue to be binding on the Parties notwithstanding any termination or cancellation of the Agreement.

		
	14.7
	The Parties agree that the written demand by a party to the dispute in terms of clause 14.1, 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.

		
	15
	NOTICES AND DOMICILIA

		
	15.1
	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 email addresses –

	
			
	Name
	Physical Address
	Email

	Company
	Howick Close 
Waterfall Park 
Midrand
Johannesburg
1686 
	megan.pydigadu@mixtelematics.com

	 
	 
	 

	 
	 
	 

	Marked for the attention of: Chief Financial Officer

	 
	 
	 

	Name
	Physical Address
	Email

	Imperial and Seller
	Imperial Place
Jeppe Quondam
79 Boeing Road East
Bedfordview
2007
	oarbee@ih.co.za

	 
	 
	 

	Marked for the attention of: Osman Arbee

	 
	 
	 

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 23

provided that a Party may change its domicilium or its address for the purposes of notices to any other physical address or email address by written notice to the other Parties to that effect.  Such change of address will be effective 5 (five) business days after receipt of the notice of the change.
		
	15.2
	All notices to be given in terms of this Agreement will be given in writing and will -

		
	15.2.1
	be delivered by hand or sent by email;

		
	15.2.2
	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

		
	15.2.3
	if sent by email during business hours, be presumed to have been received on the date of successful transmission of the email.  Any email 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.

		
	15.3
	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 15.

		
	16
	BENEFIT OF THE AGREEMENT

This Agreement will also be for the benefit of and be binding upon the successors in title and permitted assigns of the Parties or any of them.
		
	17
	APPLICABLE LAW AND JURISDICTION

		
	17.1
	This Agreement will in all respects be governed by and construed under the laws of South Africa (without giving effect to conflict of laws principles).

		
	17.2
	Subject to clause 14, 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 this Agreement.

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 24

		
	18
	GENERAL

		
	18.1
	Whole Agreement

		
	18.1.1
	This Agreement constitutes 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 this Agreement not incorporated in this Agreement shall be binding on any of the Parties.

		
	18.1.2
	This Agreement supersedes and replaces any and all agreements between the Parties (and other persons, as may be applicable) and undertakings given to or on behalf of the Parties (and other persons, as may be applicable) in relation to the subject matter hereof.

		
	18.2
	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.
		
	18.3
	No Indulgences

No latitude, extension of time or other indulgence which may be given or allowed by any Party to the others 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 that Party or operate as a waiver or a novation of or otherwise affect any of its rights in terms of or arising from this Agreement or estop or preclude it 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.

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 25

		
	18.4
	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.
		
	18.5
	Continuing Effectiveness of Certain Provisions

The expiration or termination of this Agreement shall not affect such of the provisions of this Agreement as expressly provide that they will operate after any such expiration or termination or which of necessity must continue to have effect after such expiration or termination, notwithstanding that the clauses themselves do not expressly provide for this.
		
	18.6
	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 any Party without the prior signed written consent of the other Parties, save as otherwise provided herein.
		
	18.7
	Exclusion of Electronic Signature

The reference in clauses 18.2, 18.4 and 18.6 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.
		
	19
	COSTS

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 this Agreement.  The Securities Transfer Tax in respect of the Repurchase will be borne by the Company.
		
	20
	SIGNATURE

		
	20.1
	This Agreement is signed by the Parties on the dates and at the places indicated below.

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 26

		
	20.2
	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.

		
	20.3
	The persons signing this Agreement in a representative capacity warrant their authority to do so.

		
	20.4
	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.

SIGNED at              Bedfordview                            on           29 April                  2016
For and on behalf of
IMPERIAL CORPORATE SERVICES PROPRIETARY LIMITED
By:_/s/ George Nakos 
	
	
	Signature
George Nakos

	Name of Signatory

	Designation of Signatory

SIGNED at              Bedfordview                            on           29 April                  2016
For and on behalf of
IMPERIAL HOLDINGS LIMITED

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
 27

By:_/s/ George Nakos 
	
	
	Signature
George Nakos

	Name of Signatory
Group Corporate Finance Executive

	Designation of Signatory

SIGNED at            Santa Monica, USA         on             29 April                      2016
For and on behalf of
MIX TELEMATICS LIMITED
By:_/s/ Stefan Joselowitz 
	
	
	Signature
Stefan Joselowitz

	Name of Signatory
Group CEO

	Designation of Signatory

	
			
	 
	 
	CLIFFE DEKKER HOFMEYR

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00259-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00259-of-00352.parquet"}]]