Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Net1 U.E.P.S. Technologies, Inc. - Exhibit 10.9

 EXHIBIT 10.9  

 PROCUREMENT AND COMMISSIONING 

 AGREEMENT  

between

 NET1 INVESTMENT HOLDINGS (PROPRIETARY) LIMITED 

and 

RESERVE BANK OF MALAWI 

 

	TABLE OF CONTENTS	 
	 	 	 
	1.	PARTIES	1
	 	 	 
	2.	INTERPRETATION	1
	 	 	 
	3.	INTRODUCTION	5
	 	 	 
	4.	GRANT OF RIGHTS	5
	 	 	 
	5.	RIGHT OF THE RESERVE BANK OF MALAWI TO NOMINATE	6
	 	 	 
	6.	OBLIGATIONS OF NET1	7
	 	 	 
	7.	CONSIDERATION	7
	 	 	 
	8.	OWNERSHIP OF THE INTELLECTUAL PROPERTY	7
	 	 	 
	9.	COPYRIGHT	8
	 	 	 
	10.	PATENT ENFORCEMENT	9
	 	 	 
	11.	INDEMNITIES	9
	 	 	 
	12.	LIMITATION OF LIABILITY	10
	 	 	 
	13.	TERMINATION or REPUDIATION OF THIS AGREEMENT BY	10
	 	 	 
	 	THE RESERVE BANK OF MALAWI or NET1	10
	 	 	 
	14.	BREACH	11
	 	 	 
	15.	FORCE MAJEURE	11
	 	 	 
	16.	RELATIONSHIP OF PARTIES	12
	 	 	 
	17.	ASSIGNABILITY	12
	 	 	 
	18.	SUPPORT	12
	 	 	 
	19.	CONFIDENTIALITY	13
	 	 	 
	20.	PUBLICITY AND ANNOUNCEMENTS	13
	 	 	 
	21.	GOVERNING LAW	13
	 	 	 
	22.	SUBMISSION TO JURISDICTION	13
	 	 	 
	23.	ARBITRATION	14
	 	 	 
	24.	SEVERABILITY	16
	 	 	 
	25.	ADDRESSES AND NOTICES	17
	 	 	 
	26.	GENERAL	18

	APPENDED:	 	 
	APPENDIX “A”	–	(vide clause 2.6.9,)
	APPENDIX “B”	–	(vide clause 2.6.5)
	APPENDIX “C”	–	(vide clause 2.6.10)

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	1. 	PARTIES 

	 	 	 	 
	1.1 	 	NET1 INVESTMENT HOLDINGS
        (PROPRIETARY) LIMITED 1.2 RESERVE BANK OF MALAWI 

	 	 	 
	2. 	INTERPRETATION 

	 	 
	2.1 	 	The clause headings in this
        agreement are for reference purposes only and shall not be used in the
        interpretation thereof. 

	 	 	 
	2.2	 	Unless the context clearly
        indicates a contrary intention :- 

	 	 	 
	2.2.1	 	 	expressions which denote any one gender
        shall include the other genders; 

	 	 	 	 
	2.2.2 	 	 	a person. shall include a natural person,
        company, partnership, close corporation or other legal personae; 

	 	 	 	 
	2.2.3	 	 	 the singular, shall include the plural
        and vice versa. 

	 	 	 	 
	2.3 	When any particular number
        of days is provided for the doing of any act or for any other purpose,
        the reckoning shall exclude the first day and shall include the last day
        which shall be a business day and shall include all Saturdays, Sundays
        and public holidays which occur during the period. For the purposes hereof,
        a “business day” shall mean a day which is not a Saturday, Sunday
        or public holiday. 

	 	 
	2.4 	Any schedule or annex to
        this agreement shall be deemed to be incorporated herein and shall form
        an integral part of this agreement. 

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	2.5 	If any provision in a definition is a substantive
        provision conferring any right or imposing any obligation on any party,
        then notwithstanding that it is only in the interpretation clause, effect
        shall be given to it as if it were a substantive provision in this agreement.
      

	 	 
	2.6 	The following expressions bear the meanings assigned
        to them hereunder and cognate expressions bear corresponding meanings,
        namely: 

	2.6.1	 	 	“Accredited UEPS system integrator”	 	a company that has the technical know- how and expertise
        to implement UEPS based systems and that has been appointed by NUEP as
        one of its systems integrators; 

	 	 	 	 	 	 
	2.6.2 	 	 	“Aplitec”	 	Net1 Applied Technology Holdings Limited, a company
        duly registered and incorporated in accordance with the Company Laws of
        the Republic of South Africa having its registered office at 4th Floor
        West Wing, President Place, Cnr Jan Smuts Avenue and Bolton Drive, Rosebank,
        Johannesburg; 

	 	 	 	 	 	 
	2.6.3	 	 	“effective date” 	 	the signature date;

	 	 	 	 	 	 
	2.6.4	 	 	“EFT switch”	 	a computer switching system that will enable the
        switching of transactions between independent software and hardware platforms;

	 	 	 	 	 	 
	2.6.5	 	 	“financial terms” 	 	the financial terms and conditions, inclusive of
        royalties or its alternative, licence fees, up-front payments, work in
        progress payments, payments 

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	 	 	 	 	 	completion, further development fees, maintenance
        fees and any other monies as laid out in Appendix “B” hereto
        and accepted by the Reserve Bank of Malawi;

	 	 	 	 	 	 
	2.6.6	 	 	“intellectual property”	 	includes the patents and the software in respect
        of UEPS;

	 	 	 	 	 	 
	2.6.7	 	 	“Net1”	 	Net1 Investment Holdings (Proprietary) Limited, a
        wholly owned subsidiary of Aplitec which is duly registered and incorporated
        in accordance with the Company Laws of the Republic of South Africa having
        its registered office at 4 floor, West Wing, President Place, Cnr. Jan
        Smuts and Bolton Drive, Rosebank, Johannesburg;

	 	 	 	 	 	 
	2.6.8	 	 	“NUEP”	 	Net1 UEPS Technologies Inc., a company incorporated
        under the laws of the State of Florida and having its registered office
        at 200 East Las Olas Boulevard, Suite 1900, Fort Lauderdale, Florida,
        33301;

	 	 	 	 	 	 
	2.6.9	 	 	“project definition report”	 	the report as per Appendix “A” hereto which
        details the responsibilities and obligations of the parties to this agreement
        and approved by the parties;

	 	 	 	 	 	 
	2.6.10	 	 	“project plan”	 	the project plan as per Appendix “C” hereto
        which defines the activities to be performed in order to implement the
        systems as defined in 3.1 below;

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	2.6.11	 	 	“Reserve Bank of Malawi”	 	the Reserve bank of Malawi Limited incorporated according to the Jaws
      of Malawi and having its registered office at Reserve Bank of Malawi, P
      0 Box 30063, Capital City, Lilongwe 3, Malawi;
	 	 	 	 	 	 
	2.6.12	 	 	“patents”	 	United States Patent No. 5,175,416 and European Patent No. 0-421808 together
      with any similar patents which may be granted to Net1: 
	 	 	 	 	 	 
	2.6.13	 	 	“SARL”	 	NET1 HOLDINGS SARL (incorporated in Luxembourg); 
	 	 	 	 	 	 
	2.6.14	 	 	“services”	 	the terms and conditions set out in paragraph 5.1;
	 	 	 	 	 	 
	2.6.15	 	 	“signature date”	 	the date upon which this agreement is signed by the last signing party
      hereto;
	 	 	 	 	 	 
	2.6.16	 	 	“Smart Card Scheme” 	 	the Universal Electronic Payment System (“UEPS”) based on the
      patents capable of providing a fully integrated payment and transacting
      system utilising smart card technology;
	 	 	 	 	 	 
	2.6.17	 	 	“software”	 	the Universal Electronic Payment System software and any upgrades o such
      software; 
	 	 	 	 	 	 
	2.6.18	 	 	“territory”	 	Malawi; 

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	2.6.19	 	 	“UEPS”
	 	the Universal Electronic Payment System designed
        by Net1 as described and detailed in the complete specification of Net1’s
        application for the patents. UEPS is one out of a possible number of applications
        that uses the patents to provide an integrated, secure and complete payment
        system. 

	 	 	 	 	 	 
	3.	INTRODUCTION 

	 	 
	3.1 	 	The Reserve Bank of Malawi
        has complied with all its and Malawi’s tendering procedures and processes
        and has awarded Net1 the following tenders: 

	 	 	 	 
	3.1.1	 	 	EFT switch; 

	 	 	 	 
	3.1.2	 	 	Smart Card Scheme. 

	 	 	 
	3.2 	 	Net1 is able to deliver
        the systems referred to in 3.1.1 and 3.1.2 above. 

	 	 	 
	3.3 	 	Net1 is an Accredited UEPS
        system integrator and is able to grant the Reserve Bank of Malawi the
        appropriate licences required to operate the Smart Card Scheme. 

	 	 	 
	4.	GRANT OF RIGHTS
        

	 	 	 
	4.1	 	Net1 hereby grants the Reserve
        Bank of Malawi a non-exclusive and non- transferable licence to operate
        the UEPS back-end switch together with the Smart Card Scheme in the territory
        under the operator terms and conditions as incorporated in this document
        as read with the Appendices hereto. 

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	4.2	 	Net1 hereby grants the Reserve Bank of Malawi the
        right to instruct Net1 to licence institutions which make use of the systems
        referred to in 3.1 above under the user licence terms and conditions as
        incorporated herein. 

	 	 	 
	4.3 	 	The licence granted in terms hereof shall be indefinite
        and shall continue until this agreement is terminated for whatsoever reason.
        Notwithstanding the termination of this agreement, all its provisions
        including those contained in the Appendices shall remain of full force
        and effect save for the deliverables as set out in Appendix “C hereto
        being the project plan referred to in 2.6.10 above. 

	 	 	 
	5. 	RIGHT OF THE RESERVE
        BANK OF MALAWI TO NOMINATE 

	 	 	 
	5.1	 	It is recorded that the Reserve Bank of Malawi shall
        be entitled with the written consent of Net1 (which consent shall not
        be unreasonably withheld) to nominate a wholly owned subsidiary in substitution
        for it under this agreement provided that in the event of the Reserve
        Bank of Malawi nominating such nominee and Net1 granting its written consent
        aforesaid, then by its signature hereto, the Reserve Bank of Malawi hereby
        binds itself in favour of Net1 as surety for and co-principal debtor in
        solidum with such nominee for the due performance of all obligations and
        the payment of all sums of money by such nominee to Net1 arising out and
        in terms of this agreement. The Reserve Bank of Malawi hereby waives the
        benefits of excussion, division and cession of action and records that
        its obligations in terms hereof shall not be affected by any concession,
        extension or other act of latitude by Net1 to such nominee. 

	 	 	 
	5.2	 	Without derogating from the aforegoing, in the event
        of the Reserve Bank of Malawi nominating a wholly owned subsidiary in
        the circumstances referred to in 5.1 above, by its signature hereto it
        hereby guarantees payment of all amounts payable by the nominee and the
        performance of all obligations by the nominee to Net arising out and in
        terms of this agreement. 

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	6.	OBLIGATIONS OF THE
        PARTIES

	 	 	 
	 	6.1 
	Net1 shall have the responsibilities
        and obligations (services) as set out in the project definition report
        and the project plan which are Appendices “A” and “C”
        respectively hereto.

	 	 	 
	 	6.2 
	Net1 shall not, however, be liable to
        the Reserve Bank of Malawi or any other person for any loss of any nature
        whatsoever which may be suffered or incurred as a result of the use by
        the Reserve Bank of Malawi of any information furnished to it by Net1
        or as a result of any mistake, error or omission of Net1 and the Reserve
        Bank of Malawi hereby indemnifies Net1 against any claim which may be
        made against it arising out of the aforegoing. The provisions hereof shall
        apply notwithstanding any negligence or default on the part of Net1.

	 	 	 
	 	6.3 
	The provisions of 6.2 shall, mutatis
        mutandis, apply to the Reserve Bank of Malawi so that it shall not be
        liable to Net in the circumstances referred to in 6.2.

	 	 	 
	7.
 	CONSIDERATION

       In consideration for the services which are to be rendered
        by Net1 to the Reserve Bank of Malawi in terms of this agreement and which
        are referred to in 5.1 above, the Reserve Bank of Malawi shall pay to
        Net1 the amounts reflected in the financial terms which is Appendix “B”
        hereto and shall strictly adhere to the terms and conditions stated therein.

	 	 
	8.	OWNERSHIP OF THE
        INTELLECTUAL PROPERTY

	 	 	 
	8.1 	 	The Reserve Bank of Ma acknowledges
        that the intellectual property and/or any part thereof is and shall remain
        the sole and absolute property of SARL or its assigns, and that it shall
        have no right to hire, lease, transfer, pledge or assign or otherwise
        encumber the whole or any part thereof.

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	8.2	 	All right and title in and to the intellectual property
        and/or any part thereof will at all times remain with SARL or its assigns.
        The use of the intellectual property is licensed and not sold to the Reserve
        Bank of Malawi. 

	 	 	 
	8.3 	 	The Reserve Bank of Malawi agrees to preserve the
        software in its present condition and not to abuse or tamper with it nor
        to attempt to derive the source or object code thereof. The Reserve Bank
        of Malawi further agrees not to modify or attempt to modify the software
        or to allow any other person (other than a person authorised by Net1)
        to do so. 

	 	 	 
	8.4 	 	The Reserve bank of Malawi shall ensure that all
        material and products comprising the intellectual property shall be marked
        by it to reflect that copyright, trade secrets and proprietary rights
        of Net1 and SARL are printed thereon and/or that the Net1 logo is placed
        thereon. 

	 	 	 
	8.5 	 	The Reserve Bank of Malawi shall ensure that all
        its relevant employees are made aware of and comply with its obligations
        regarding the terms and conditions contained in this agreement. 

	 	 	 
	8.6	 	The Reserve Bank of Malawi agrees not to contest
        nor challenge in any legal proceedings or otherwise, any proprietary rights
        of the owner of the intellectual property, provided that such rights shall
        have been in existence at the date of signature of this agreement and
        insofar as such rights shall relate to the project forming the subject
        matter of this agreement. 

	 	 	 
	8.7 	 	The Reserve Bank of Malawi acknowledges that it has
        no right to the intellectual property save and except as are granted in
        terms of this agreement. 

	 	 	 
	9. 	COPYRIGHT 

	 	 	 
	9.1 	 	Without limiting the generality of the provisions
        in 8:- 

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	9.1.1	 	 	all title and copyright in and to the intellectual
        property is owned by SARL. and all rights not specifically granted herein
        are reserved by SARL. and/or its assigns; 9.1.2 the Reserve Bank of Malawi
        hereby indemnifies Net1 and SARL against any loss or damage, howsoever
        arising, as a result of any breach of any intellectual property rights
        of any third party by the Reserve Bank of Malawi in its use of the intellectual
        property. 

	 	 	 	 
	10. 	PATENT ENFORCEMENT
        

	 	 	 	 
	10.1 	 	If any third party shall
        in the reasonable opinion of Net1 or the Reserve Bank of Malawi infringe
        any of the patents or/and the UEPS rights, the parties shall initiate
        a strategy to enforce the patents and the (UEPS rights against the infringing
        party by: 

	 	 	 	 
	10.1.1	 	 	initiating a legal or administrative procedure for
        infringement against the third party together with the right to enforce
        any judgement obtained pursuant thereto, or 

	 	 	 	 
	10.1.2 	 	 	enter into a cross-licence, settlement or other licence
        agreement with the third party at the discretion of NUEP. 

	 	 	 	 
	11.	INDEMNITIES 

	 	 	 	 
	11.1 	 	Subject to 12. below, Net1
        hereby indemnifies the Reserve Bank of Malawi against loss or damage which
        it may suffer as a result of the infringement by any third party of the
        patent rights in terms of the patents. 

	 	 	 
	11.2 	 	For the duration of the
        licence granted in terms hereof, the Reserve Bank of Malawi shall not
        use any technology which is similar to or competitive with the intellectual
        property without first having obtained the prior written consent of Net1.
      

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	 	 	Should the Reserve Bank of Malawi breach
        its obligations in terms of this clause, it hereby indemnifies and holds
        Net1 harmless against any loss or damage which it may suffer as a result
        of such breach as well as in respect of any loss or damage which any third
        party may suffer as a result thereof.

	 	 	 
	12.	LIMITATION OF LIABILITY

       Subject to 13.1, neither party shall have any claim
        against the other in respect of any loss, liability, damage (whether direct
        or indirect, consequential or otherwise and whether for loss of profits,
        revenue, data or goodwill) or expense of any nature whatsoever which the
        other party may suffer from any cause whatsoever arising out of this agreement
        including the cancellation of this agreement for any reason whatsoever.
        This limitation shall apply in the event that the nature of the aforesaid
        damages is within the contemplation of either party or in the event of
        it being aware or being advised thereof

	 	 	 
	13.	TERMINATION or REPUDIATION
        OF THIS AGREEMENT BY THE RESERVE BANK OF MALAWI or NET1 

	 	 	 
	13.1 	 	Should this agreement be unlawfully
        terminated or repudiated by the Reserve Bank of Malawi and should such
        repudiation be accepted by Net1, the Reserve Bank of Malawi shall be obliged
        to make immediate payment to Net1 of all amounts which would have been
        payable to it in terms of Appendix “B” had the agreement not
        been unlawfully terminated or repudiated by the Reserve Bank of Malawi.

	 	 	 
	13.2 	 	Should this agreement be unlawfully
        terminated or repudiated by Net (and should such repudiation be accepted
        by the Reserve Bank of Malawi), Net1 shall not be relieved of any of its
        obligations which will have accrued prior to the termination thereof,
        provided that Net1 shall, subject to 12 above, be liable for settlement
        of third party claims that may be awarded against the Reserve Bank of
        Malawi as a result of the unlawful termination.

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	14. 	BREACH 

	 	 	 
	14.1 	 	Should either party commit a breach of any material
        provision of this agreement and fail to remedy such breach within 30 (thirty)
        days of receiving written notice from the other party requiring it to
        do so, then the aggrieved party shall be entitled, without prejudice to
        its other rights in law, to cancel this agreement or to claim immediate
        specific performance of all of the defaulting party’s obligations,
        in either event, without prejudice to the aggrieved party’s rights
        to claim damages subject to the provisions of 12 above. 

	 	 	 
	14.2 	 	Should either party cease trading or operating or
        be placed under judicial management or liquidation, then and in such event
        the aggrieved party shall be entitled to cancel this agreement without
        prejudice to its right to claim damages subject to the provisions of 12
        above. 

	 	 	 
	14.3	 	If this agreement is terminated for any reason at
        anytime, Net1 shall be entitled to give written notice to the Reserve
        Bank of Malawi requiring it to forthwith cease to use the intellectual
        property and to return to Net the intellectual property and software materials
        and all copies thereof. Should the Reserve Bank of Malawi fail to immediately
        return the intellectual property, software material and copies for any
        reason, Net1 shall be entitled to take immediate possession thereof from
        the Reserve Bank of Malawi wherever same is situate. 

	 	 	 
	15. 	FORCE MAJEURE 

	 	 	 
	15.1 	 	Neither party shall be liable for any failure to
        fulfil its obligations under this agreement if and to the extent such
        failure is caused by any circumstances beyond its reasonable control,
        including but not limited to flood, fire, earthquake, war, tempest, hurricane,
        industrial action, Government restrictions or acts of God. 

	 	 	 
	15.2 	 	Should either party be unable to fulfil a material
        part of its obligations under this agreement for a period in excess of
        6 (six) months due to circumstances beyond its control as contemplated
        in 15.1 above, the other party may in its sole discretion cancel this
        agreement forthwith by written notice. 

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	15.3 	 	The parties agree to notify each other
        promptly of any circumstance delaying its performance and to resume performance
        as soon thereafter as is reasonably practicable.

	 	 	 
	16.	RELATIONSHIP OF
        PARTIES

	 	 	 
	16.1 	 	The parties are independent contractors
        and nothing in this agreement shall be construed as creating a partnership,
        joint venture or employer / employee relationship between the parties
        and neither party shall have any authority to incur any liability on behalf
        of the other party or to pledge the credit of the other party. In addition,
        neither party shall be deemed to be the representative or agent of the
        other party and all acts done by any party shall be done in its own name
        as principal.

	 	 	 
	16.2 	 	The parties agree to enter into a Memorandum
        of Understanding with all the other relevant parties to the project.

	 	 	 
	17.	ASSIGNABILITY

       Neither party shall cede any of its rights nor assign
        any of its obligations or grant a sub- licence without first having obtained
        the prior written consent of the other party.

	 	 	 
	18.	SUPPORT

	 	 	 
	18.1 	 	The parties undertake at all times to
        do all such things, perform all such functions and take all such steps
        and to procure the doing of all such things, the performance of all such
        actions and the taking of all such steps as may be open to them and necessary
        for or incidental to the putting into effect or maintenance of the terms,
        conditions or import of this agreement.

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	 18.2 	 	Without derogating from the aforegoing,
        the parties shall exert their best endeavours to prevent and guard against
        any infringement or suspected or threatened infringement of the patents
        or any other term or condition of this agreement.

	 	 	 
	19.	CONFIDENTIALITY

       The parties undertake that they will not at any time
        during this agreement, or after termination hereof, disclose any information,
        which comes to their knowledge as a result hereof, not being information,
        which comes from an independent third party, which relates to: 

	 	 	 
	19.1 	 	any business or marketing method or
        practice or customers of Net1; 

	 	 	 
	19.2 	 	any technical information, know-how
        or process or method of Net1.

	 	 	 
	20.	PUBLICITY AND ANNOUNCEMENTS

       The parties intend that the details of this agreement
        shall be kept confidential and that all press announcements and related
        publicity concerned with this agreement shall be carried out by the parties
        in consultation and by agreement.

	 	 	 
	21.	GOVERNING LAW

       This agreement shall be governed and interpreted by
        the substantive laws of Malawi.

	 	 	 
	22.	SUBMISSION TO JURISDICTION

       Subject to the provisions of 23 below, any legal action
        or proceedings arising out of or in connection with this agreement may
        be brought in the Malawi Courts, and the parties irrevocably submit to
        the non-exclusive jurisdiction of such court and/or the arbitration forum

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	 	 	referred to in terms of
        23 below. The parties irrevocably waive any objections they may now or
        hereafter have that such action or proceeding has been brought in an inconvenient
        forum.

	 	 	 	 	 
	23. 	ARBITRATION 

	 	 	 	 	 
	23.1 	 	For the purposes of the
        agreement, “dispute” includes, without prejudice to the generality
        of that term, any dispute arising out of or in connection with the agreement
        and/or the interpretation and/or the implementation and/or the termination
        thereof. 

	 	 	 	 	 
	23.2 	 	Should any dispute arise,
        either of the parties shall be entitled to require, by written notice
        to the other, that the dispute be submitted to arbitration in terms hereof.
      

	 	 	 
	23.3 	 	Subject to the provisions
        hereof, an arbitration shall be held under the provisions of the arbitration
        laws for the time being in force in England, provided that: 

	 	 	 
	23.3.1 	 	 	the arbitrator shall be,
        if the question in issue is:- 

	 	 	 	 	 
	23.3.1.1 	 	 	 	primarily an accounting matter, an independent
        practising accountant of not less than ten years’ standing; 

	 	 	 	 	 
	23.3.1.2	 	 	 	primarily a legal matter, a practising
        senior counsel or attorney of not less than ten years’ standing;

	 	 	 	 	 
	23.3.1.3	 	 	 	any other matter, a suitably qualified
        independent person, 

	 	 	 	 	 
	 	 	 	agreed upon by the parties
        and, failing such agreement within five days after the date on which the
        arbitration is demanded, shall be appointed by the Chairman of the International
        Chamber of Commerce who may be instructed by any of the parties to make
        the nomination at any time after the expiry of that five day period; 

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	23.3.2	 	 	the arbitration shall be
        held in London at a venue and in accordance with formalities and/or procedures
        determined by the arbitrator, and may be held in an informal and summary
        manner, on the basis that it shall not be necessary to observe or carry
        out the usual formalities or procedures, pleadings and/or discovery, or
        the strict rules of evidence;

	 	 	 	 	 
	23.3.3	 	 	the arbitrator shall be
        entitled:

	 	 	 	 	 
	23.3.3.1	 	 	 	to investigate or cause to be investigated any matter,
        fact or thing which he considers necessary or desirable in connection
        with the dispute and for that purpose shall have the widest powers of
        investigating all the books and records of the party or parties to the
        dispute and the right to take copies or make extracts therefrom and the
        right to have them produced and/or delivered at any reasonable place required
        by him for the aforesaid purpose; 

	 	 	 	 	 
	23.3.3.2	 	 	 	to interview and question under oath representatives
        of any of the parties;

	 	 	 	 	 
	23.3.3.3	 	 	 	 to decide the dispute according to what he considers
        just and equitable in the circumstances; 

	 	 	 	 	 
	23.3.3.4	 	 	 	to make such award, including an award for costs,
        specific performance, an interdict, damages or a penalty or otherwise
        as he in his discretion may deem fit and appropriate, provided that should
        the arbitrator fail to make an award with regard to costs, the costs of
        the arbitrator shall be borne equally between the parties;

	 	 	 	 	 
	23.3.4	 	 	the arbitration shall be
        held as quickly as possible after it is demanded with a view to its being
        completed within twenty-one days after it has been so demanded; 

	 	 	 	 
	23.3.5 	 	 	immediately after the arbitrator
        has been agreed upon or nominated in terms hereof, any of the parties
        shall be entitled to call upon the arbitrator 

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	 	 	 	to fix a date and place as to when and where the
        arbitration proceedings shall be held and to settle the procedure and
        manner in which the arbitration proceedings will be held.

	 	 	 	 
	23.4 	 	Any award that may be made
        by the arbitrator:

	 	 	 	 
	23.4.1	 	 	shall be in writing and shall include the reasons
        therefor; 

	 	 	 	 
	23.4.2 	 	 	shall be final and binding; 

	 	 	 	 
	23.4.3 	 	 	shall be carried into effect; and

	 	 	 	 
	23.4.4	 	 	may be made an order of any court to whose jurisdiction
        the parties to the dispute are subject.

	 	 	 	 
	23.5 	 	This arbitration clause
        constitutes an irrevocable consent by the parties to any proceedings in
        terms hereof and no party shall be entitled to withdraw therefrom or to
        claim in such proceedings that he is not bound by this arbitration clause.

	 	 	 
	23.6 	 	This arbitration clause
        shall not preclude any of the parties from obtaining relief by way of
        motion proceedings on an urgent basis from a court of competent jurisdiction
        pending the decision of the arbitrator.

	 	 	 
	23.7 	 	For the purposes hereof,
        the parties hereby submit themselves to the Courts of England.

	 	 	 
	23.8 	 	This arbitration clause
        is severable from the rest of the agreement and shall remain in effect
        even if the agreement is terminated for any reason.

	 	 	 
	24.	SEVERABILITY

      Any clause in this agreement which may be invalid in
        terms of any statute, by-law or legislation shall be capable of being
        severed from this agreement without in any way affecting the rest of this
        agreement.

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	25. 	ADDRESSES AND NOTICES
        

	 	 	 
	25.1 	 	For the purpose of this agreement, including the
        giving of notices in terms hereof and the serving of legal process, the
        parties choose domicilium citandi et executandi (“domicilium”)
        as follows: 

	 	 	 	 	 	 
	25.1.1 	 	 	Net1: 
	 	4th Floor, West Wing, 

      President Place, 

      Jan Smuts Avenue and Bolton Drive, 

      Rosebank, Johannesburg 
	 	 	 	 	 	 
	25.1.2	 	 	Reserve Bank of Malawi: 
	 	P 0 Box 30063 

      Capital City 

      Lilongwe 

      Malawi 
	 	 	 	 
	25.2 	 	Any notice given in connection
        with this agreement may be delivered by hand; or be sent by prepaid registered
        post; or be sent by telefax if the domicilium includes a telefax number,
        to the domicilium chosen by the party concerned. Any notice or process
        delivered on any party in connection with any matter or subject arising
        out of this agreement or any notice shall be deemed to have been delivered
        if handed to any responsible person at the domicilium chosen by any party
        and it shall not be necessary to hand such process or notice to any party
        personally. 

	 	 	 	 
	25.3 	 	A notice given as set out
        above shall be presumed to have been duly delivered unless the contrary
        is proved:-

	 	 	 	 
	25.3.1 	 	 	on the date of delivery
        if delivered by hand;

	 	 	 	 
	25.3.2 	 	 	and received on the date
        of dispatch if sent by telefax to the chosen telefax number; 

	Page
      17 

 

	25.3.3	 	 	on the 21st day from the date of posting including
        the date of posting if posted by pre-paid registered post from within
        the Republic of South Africa. 

	 	 	 	 
	26. 	GENERAL 

	 	 	 	 
	26.1 	 	This document contains the
        entire agreement between the parties in regard to the subject matter hereof
        and neither of them shall be bound by any undertakings, representations,
        warranties, promises or the like not recorded herein. 

	 	 	 
	26.2 	 	No alteration, variation
        or cancellation by agreement of, addition or amendment to, or deletion
        from this agreement shall be of any force or effect unless in writing
        and signed by or on behalf of the parties hereto. 

	 	 	 
	26.3 	 	No indulgence, extension
        of time, relaxation or latitude which any party (the grantor) may show,
        grant or allow to any other party (the grantee) shall constitute a waiver
        by the grantor of any of his rights and the grantor shall not thereby
        be prejudiced or estopped from exercising any of his rights against the
        grantee which may have then already arisen or which may thereafter arise.
      

	 	 	 
	27. 	UEPS LICENCE FEES
        

	 	 	 
	27.1 	 	The Reserve Bank of Malawi
        selects Option 2 of Appendix B for Year 1 (Small System), subject to review
        annually, provided that licence fees shall only come into effect on final
        commissioning of the switch as defined in the Project Plan Appendix 3
        of this contract.

	 	 	 
	27.2 	 	The Reserve Bank of Malawi
        reserves the right to opt for another option on review as scheduled in
        Appendix B of the Cost and Payments document agreed to by the parties.
      

	Page
      18 

THUS DONE AND SIGNED BY THE RESPECTIVE PARTIES AS FOLLOWS:

                                          /s/
  signature                                        

 For: NET1 INVESTMENT HOLDINGS (PROPRIETARY) LIMITED 

           Duly Authorised 

Date:   6 April 2001 

Place:  JHB 

 

                                          /s/
  signature                                        
  

  For: RESERVE BANK OF MALAWI 

            Duly Authorised 

Date: 

Place: 

 BY ITS SIGNATURE HERETO, NET1 HOLDINGS SARL
  CONSENTS TO THE PROVISIONS OF THIS AGREEMENT AND ACCEPTS ALL THE BENEFITS CONFERRED
  UPON IT IN TERMS HEREOF 

                                         /s/
  B Stewart                                   
    

  For: NET1 HOLDINGS SARL 

           duly authorised 

Date:   6th April 2001 

Place: JHB 

 APPENDIX “B” 

	ATTACHMENT 1 -
        COST & PAYMENT 

  

	PREPARED BY:     	 	B L STEWART 

      NET1 INVESTMENT HOLDINGS (PTY) LTD 

      21st March 2001 

	UEPS
        LICENCE FEES 

 To Be Invoiced & Paid To Net1 Holdings — Luxembourg

  Bank Account Details to be submitted. 

 Option 1
   

 SMALL SYSTEM 

  Less than 250 POS and/or 25,000 smart cards 

	§	Annual End User Licence Fee 

      (Issuer/Acquirer)
 	 	US$ 5,000 paper end user utilising system Payable
        up front per end user and thereafter annually 

	 	 	 	 
	§	Transaction Royalty Fee	 	US$ 0.01c per transaction Payable quarterly 

 MEDIUM SYSTEM  

  Between 250 - 2499 POS and 25,000 - 249,999 smart cards 

	§	Annual End User Licence Fee 

      (Issuer/Acquirer)
 	 	US$ 25,000 paper end user utilising system Payable
        up front per end user and thereafter annually 

	 	 	 	 
	§	Transaction Royalty Fee	 	US$ 0.01c per transaction Payable quarterly 

 Option 2
   

 SMALL SYSTEM  

  Less than 250 POS and/or 25,000 smart cards 

	§	To drop the US$ 0.01 c per transaction
 	 
	 	 	 
	§	Increase the Annual Licence
        Fee to US$ 20,000 per annum per end user (Issuer/Acquirer) utilising the
        system. Payable up front per end user and thereafter annually

 MEDIUM SYSTEM  

  Between 250-2499 POS and 25,000 —249,999 smart cards 

	§	To drop the US$ 0.01 c per transaction
 	 
	 	 	 
	§	Increase the Annual Licence
        Fee to US$ 50,000 per annum per end user (Issuer/Acquirer) utilising the
        system. Payable up front per end user and thereafter annually

 

 NON NET1 SMART CARD RELATED EQUIPMENT

 On smart card related equipment purchased through a supplier other than NET1,
  a royalty percentage fee shall be levied. Calculations shall be based upon the
  final sales price to the customer. 

	§	Small UEPS System 
 	 	10% 

	 	 	 	 
	§	Medium UEPS System 	 	5% 

	 	 	 	 
	§	Large UEPS System 	 	2.5% 

	CAPITAL
        EQUIPMENT COSTS 

 

 To Be Invoiced & Paid To Net1 Investment Holdings —Johannesburg 

  Bank Account Details to be submitted. 

 1. STRATUS SWITCHING SYSTEM  

 Hardware, Software & UEPS Management & Backend System

	Total Cost 	US$ 770,000 
	 	 
	Payment Terms & Conditions 	40% On Signing The Contract 

      30% On Delivery To Blantyre 

      30% On Final Successful Installation 

      Exworks — NET1 Premises 

Stratus Hardware Maintenance

	§	Price includes 1 year free hardware maintenance support
        as follows: -

      1st level — Net1 Engineers & Technicians

       2nd level — Stratus Expert

	 	 
	§	Thereafter a monthly hardware maintenance
        support fee of US$ 1,500 will be levied by Net1. Same support as specified
        above.

SPARE PARTS Included in Price 

	K104-00	 	1 x Ethernet Controller	 
	 	 	 	 
	K102	 	1 x High Speed Sync Controller	 
	 	 	 	 
	G30000	 	1	 
	M432	 	1	 
	K20000	 	1	 
	D604	 	1	 

 Stratus Software Maintenance

	§	Price includes 1 year free
        software maintenance support i.e. bug fixes, not new development or enhancements.
        Majority of the fixes will be carried out at Net1 in Johannesburg.

	 	 	 	 
	§	Requirements for new software development and/or
      enhancements will be quoted for as follows:

	   	Labour Rates	 
	 	Junior Programmer	US$ 38.00 per hour
	 	Programmer	US$ 42.00 per hour
	 	Analyst	US$ 47.00 per hour
	 	 	 
	 	Senior Analyst	US$ 52.00 per hour
	 	Team Manager	US$ 52.00 per hour
	 	Project Manager	US$ 65.00 per hour
	 	IT Technical Specialist	US$ 84.00 per hour
	 	 	 
	 	Overtime Rates 	 
	 	 	 
	 	Saturdays	Hourly Rate x 1.5 
	 	Sundays & Public Holidays	Hourly Rate x 2 
	 	 	 
	 	Expenses 	 
	 	Return Airfares if necessary to be met by Malswitch 

        Accommodation, transportation & meals to be met by Malswitch 

      

PLEASE NOTE 

  The costs involved for problems/work performed and/or solved by Net1, whereby
  the problem relates to an alternate party and/or end user to Malswitch would
  be invoiced directly to Malswitch for onward recoupment from the party concerned.

 Stratus Hardware/Software Installation/Training

 OPTION 1  

 Switch Hardware & Software Installation & Training By A Skilled Stratus
  

  Expert from JHB instead of Australia (2 weeks) 

	Total Cost      	 US$ 17,500 

                                                            

	Payment Terms & Conditions 	50% On Signing The Contract 

      50% On Completion Of The Training 

OPTION 2  

 Switch Hardware & Software Installation & Training By A Skilled
  Stratus Expert from AUSTRALIA (2 weeks)  

 Prices includes return airfares. 

	Total Cost      	 US$ 17,500 
	 	 
	Payment Terms & Conditions 	50% On Signing The Contract 

      5 0% On Completion Of The Training
	 	 
	Accommodation	Reserve Bank House Allocated To Net1 

Work To Be Performed Over The 2 Weeks

	§ 	Installation 	2 days 
	 	 	 
	§ 	Hardware Course 	2-3 days 
	 	 	 
	§ 	Stratus User Course 	3-4 days 
	 	 	 
	§ 	Stratus System Administrator Course 	4 days 
	 	 	 
	§ 	Questions & Answers	 1 day 

Course to be attended by

	§ 	2 x Electronic Engineers — Net1	 
	 	 	 
	§ 	1 x Junior Technician — Net1	 
	 	 	 
	§ 	3-4 Malswitch Representatives (if required)	 
	 	 	 
	2. 	ENTIRE SYSTEM CUSTOMISATION, INSTALLATION,
      COMMISSIONING, SUPPORT, TRAINING COSTS (7-8 MONTHS)

As specified in the Tender Document, the costs will be incurred for the work performed for during the 7-8 month period in Johannesburg or Malawi.

	Total Cost	US$275,000
	 	 
	Payment Terms & Conditions	US$ 55,000 On Signing The Contract
	 	US$ 31,428.57 monthly in advance
	 	For 7 months thereafter

	PRICE INCLUDES	 
	 	 	 
	§ 	Labour Costs	 
	 	 	 
	§ 	Return Airfares At Beginning & End Of Project	 
	 	 	 
	§ 	Monthly Return Airfares For Staff To Visit Their
      Families
	 	 	 
	§ 	Living Expenses	 
	 	 	 
	§ 	Vehicle Expenses	 
	 	 	 
	PRICE EXCLUDES 	 
	 	 	 
	§ 	Accommodation in Malawi & Meals 	 

 

	3. SMART CARDS
	 
	MPCOS-EMV 64K (8 KBYTE) PVC Printed Smart Cards

        
	For use as client cards
	 
	Including : -
	 
	Full Colour Printing
	 
	Hico Mag-Stripe
	 
	Standard White Signature Panel

 

	Unit Cost	US$ 5.25
	 	 
	Quantity	200,000 

 

	Payment Terms & Conditions	30% on placement of TOTAL order 
	 	70% balance on each batch delivery when advised that goods
      are ready to depart Gemplus Factory. 
	 	 
	Recommended Batches	lst Batch 30,000 
	 	Thereafter 15,000 per month for 10

      Months (150,000) 

      Final Batch 20,000 

      Exworks Bonded Warehouse JHB 
	 	 
	MPCOS-EMV 128K (16KBYTE) Blank Smart Cards
       
 For use as high volume merchant cards and ATM cards 
	 	 
	Unit Cost	US$ 10.35 
	 	 
	Payment Terms & Conditions	100% on advice that goods are ready for delivery Exworks
      Net1 Premises 
	 	 
	ARTWORK LOGO COSTS 	 
	Cost Per Card Artwork 	US$ 830.00 
	 	 
	4.  POS TERMINALS 

        	 
	EFT10—Standard POS 2 MB 

        
 For use with power supply
      	 
	 	 
	Unit Cost	US$ 562.00 
	 	 
	Payment Terms & Conditions	100% on advice that goods are ready for delivery-Monetel
      Factory 

	 	Exworks Bonded Warehouse . 
	 	 
	EFT2O-Portable POS 1.5 MB  
 For
      portable environments  	 
	 	 
	Unit Cost 	US$ 582.00 
	 	 
	Payment Terms & Conditions	 100% on advice that goods are ready for delivery-Monetel
      Factory Exworks Bonded Warehouse JEIB 
	 	 
	EFT POS Download Cables  
 For Software Loading
      Purposes 	 
	 	 
	Unit Cost	US$ 5.20 
	 	 
	Payment Terms & Conditions 	100% on advice that goods are ready for delivery-Net1 Premises
      Exworks Net1 Premises 
	 	 
	EFT10 & EFT20 Paper Rolls  
 For portable
      environments 	 
	 	 
	Unit Cost EFT10 Paper Roll 	US$ 0.50
	Unit Cost EFT20 Paper Roll 	US$ 0.45 
	 	 
	Payment Terms & Conditions	100% on advice that goods are ready for delivery-Net 1 Premises
      Exworks Net1 Premises 

5.  BlO-METRIC DEVICES FOR ATTACHMENT TO MERCHANT POS
  TERMINALS & BIO-METRIC REGISTRATION

	RS232 Serial Scanner  
 For Attachment
      To The P05 Terminal For Rural Wage System Biometric Registration 
	 	 
	Unit Cost 	US$ 200.00 
	 	 
	Payment Terms & Conditions	100% on advice that goods are ready for delivery-Net1 Premises
      Exworks Net1 Premises 
	 	 
	Lunchbox — Luggable Rio-Metric Registration
      Station  
 For Use In Government Mass Biometric Enrolment 
	 	 
	Unit Cost	US$ 4,775.00 
	 	 
	Payment Terms & Conditions  	100% on advice that goods are ready for delivery-Net 1 Premises
      Exworks Nell Premises 

Comprises : 

	§ 	Aluminum Constructed Case including:

      Power on/off, reset, power LED, HDD LED, 2 x 80mm x 80mm fans, 3 x alpine
      handles, 4 x alpine butterfly clips
	 	 
	§ 	Mild steel inner frame as per drawings
	 	 
	§ 	Intel Seattle 44011X2 Motherboard — No audio
	 	 
	§ 	Celeron 600 Mhz CPU 

      128 KB Cache
	 	 
	§ 	64MEDimm

      100 Mhz, Gold tab Grade A
	 	 
	§ 	Seagate 10 GE IDE Hard Drive 

      5400 rpm. 9.5 milsec, seek time
	 	 
	§ 	Samsung LT121S1-105 12.1” Colour TFT LCD 

      Resolution 800 x 600
	 	 
	§ 	ATI Expert 98 3D Charger 8 MB VGA Card
	 	 
	§ 	LS12OMB Stifly Drive

 

	§	300 W Power Supply Unit
	 	 
	§	104 Windows Keyboard
	 	 
	§	Cabling & Assembly
	 	 
	§	Finger Print Scanner
	 	 
	§	Card Reader

6 . ATMs

DV1413 Through The Wall  

  As Per Specifications in the Tender Document  

	ATM Unit Cost	US$ 25,850.00
	 	 
	ATM Template	US$ 255.00 
	 	 
	Payment Terms & Conditions 	100% on advice that goods are ready for delivery-Lisbon Airport
      Exworks Lisbon Airport 
	 	 
	 	 
	ATM Installation Costs 	 
	 	 
	Hardware & Software Installation 

      (5 Days In Malawi x 2 Technicians) 
 	US$ 2500.00
	 	 
	Hotel Accom/Airfares/Meals  	For The Account Of Malswitch
	 	 
	Payment Terms & Conditions  	100% on completion of installation 

 

 7. PERSONALISATION EQUIPMENT 

NPS1300 Personalisation/Initialisation Machine 

  As Per Specifications in the Tender Document  

	Unit Cost 	US$ 16,555.00 
	 	 
	Payment Terms & Conditions  	100% on advice that goods are ready
        For delivery-Factory France Exworks Bonded Warehouse JHB 

We are currently investigating the brand new model which is
  3 times faster than this one specified. The price will remain as is — we
  just need clarification on any changes to the software

 8.   REFUND TO MALSWITCH ON
  THE SUCCESSFUL SIGNING UP OF OTHER AFRICAN COUNTRIES UTILISING
  NET INTEGRATED SMART CARD SWITCHING SYSTEM AT A NATIONAL LEVEL

 Net1 would be prepared to grant Malswitch a refund of US$
  100,000 per country that utilises the Net1 UEPS technology at a national switching
  system level.

 9.   STRATUS EQUIPMENT - BUY
  BACK OPTION

 The buy back option for the Stratus equipment would be calculated
  at market price at the time, as defined by 2 quotations of which 1 would be
  Stratus themselves.

 PRICES HAVE BEEN CALCULATED AT US$1 = R 7.76

  Any movement in this rate would be for the account of the client (i.e. debit
  or credit)

 The maintenance proposal for Stratus, POS & ATMs (including
  all the spare part prices will be supplied later today.Filed by Automated Filing Services Inc. (604) 609-0244 - Net1 U.E.P.S. Technologies, Inc. - Exhibit 10.10

 EXHIBIT 10.10  

 “NON EXCLUSIVE” UEPS LICENCE
  

  AGREEMENT 

BETWEEN

 NET1 INVESTMENT HOLDINGS 

  (PROPRIETARY) LIMITED 

AND

 SIA NETCARDS  

TABLE OF CONTENTS

	1.	PARTIES	1
	 	 	 
	2.	INTERPRETATION	1
	 	 	 
	3.	INTRODUCTION	5
	 	 	 
	4.	GRANT OF RIGHTS	6
	 	 	 
	5.	OBLIGATIONS OF NET1	6
	 	 	 
	6.	CONSIDERATION	7
	 	 	 
	7.	OWNERSHIP OF THE INTELLECTUAL PROPERTY	7
	 	 	 
	8.	COPYRIGHT	8
	 	 	 
	9.	PATENT ENFORCEMENT	9
	 	 	 
	10.	IMITATION OF LIABILITY	9
	 	 	 
	11.	TERMINATION or REPUDIATION OF THIS AGREEMENT BY	10
	 	 	 
	 	SIA NETCARDS - LATVIA	10
	 	 	 
	12.	REACH	11
	 	 	 
	13.	FORCE MAJEURE	12
	 	 	 
	14.	RELATIONSHIP OF PARTIES	12

	Page
      i 

 

	15.	ASSIGNABILITY	13
	 	 	 
	16.	SUPPORT	13
	 	 	 
	17.	CONFIDENTIALITY	13
	 	 	 
	18.	PUBLICITY AND ANNOUNCEMENTS	13
	 	 	 
	19.	GOVERNING LAW	14
	 	 	 
	20.	SUBMISSION TO JURISDICTION	14
	 	 	 
	21.	ARBITRATION	14
	 	 	 
	22.	SEVERABILITY	17
	 	 	 
	23.	ADDRESSES AND NOTICES	18
	 	 	 
	24.	GENERAL	19

	Page
      ii

 

	1. 	PARTIES

	 	 	 	 
	1.1 	 	NET1 INVESTMENT HOLDINGS
        (PROPRIETARY) LIMITED 

	 	 	 	 
	1.2 	 	SIA NETCARDS - LATVIA 

	 	 	 	 
	2.	INTERPRETATION 

	 	 	 	 
	2.1 	 	The clause headings in this
        agreement are for reference purposes only and shall not be used in the
        interpretation thereof. 

	 	 	 	 
	2.2 	 	Unless the context clear
        indicates a contrary intention: - 

	 	 	 	 
	2.2.1 	 	 	expressions which denote any one gender shall include
        the other genders: 

	 	 	 	 
	2.2.2	 	 	a person, shall include a natural person, company,
        partnership, close corporation or other legal personae; 

	 	 	 	 
	2.2.3	 	 	the singular, shall include the plural and vice versa.
      

	 	 	 	 
	2.3 	 	When any particular number
        of days is provided for the doing of any act or for any other purpose,
        the reckoning shall exclude the first day and shall include the last day
        which shall be a business day and shall include all Saturdays, Sundays
        and public holidays which occur during the period. For the purposes hereof,
        a “business day” shall mean a day which is not a Saturday, Sunday
        or public holiday. 

	 	 	 
	2.4 	 	My schedule or annex to
        this agreement shall be deemed to be incorporated herein and shall form
        an integral part of this agreement. 

	Page
      1

 

	2.5	 	If any provision in a definition is a substantive
        provision conferring any right or imposing any obligation on any party,
        then notwithstanding that it is only in the interpretation clause, effect
        shall be given to it as if it were a substantive provision in this agreement;
      

	 	 	 
	2.6 	 	The following expressions bear the meanings assigned
        to them hereunder and cognate expressions bear corresponding meanings,
        namely: - 

	 	 	 	 	 	 
	2.6.1	 	 	“Accredited UEPS system Integrator ”	 	a company that has the technical know-how and expertise
        to implement UEPS based systems and that has been appointed by NUEP as
        one of its systems integrators; 

	 	 	 	 	 	 
	2.6.2	 	 	“Aplitec” 	 	Net1 Applied Technology Holdings Limited, a company
        duly registered and incorporated in accordance with the Company Laws of
        the Republic of South Africa having its registered office at 4th Floor
        West Wing, President Place, Cnr Jan Smuts Avenue and Bolton Drive, Rosebank
        Johannesburg; 

	 	 	 	 	 	 
	2.6.3	 	 	“effective date”	 	the signature date; 

	 	 	 	 	 	 
	2.6.4	 	 	“EFT switch”	 	a computer switching system that will enable the
        switching of transactions between independent s software and hardware
        platforms; 

	Page
      2

 

	2.6.5	 	 	“financial terms”	 	the financial terms and conditions, inclusive of
        royalties or its alternative, licence fees, up-front p payments, work
        in progress payments, payments on completion, further development fees,
        maintenance fees and any other monies as laid out in Appendices “A,
        B & C” hereto and accepted by SIA NETCARDS; 

	 	 	 	 	 	 
	2.6.6	 	 	“intellectual property”	 	includes the patents and the software in respect
        of UEPS; 

	 	 	 	 	 	 
	2.6.7	 	 	“Net1”	 	Net1 Investment Holdings (Proprietary) Limited.,
        a wholly owned subsidiary of Aplitec which is duly registered and incorporated
        in accordance with the Company Laws of the Republic of South Africa having
        its registered office at 4th Floor West Wing, President Place, Cnr Jan
        Smuts Avenue and Bolton Drive, Rosebank Johannesburg; 

	 	 	 	 	 	 
	2.6.8	 	 	“NUEP”	 	Net1 UEPS Technologies Inc. a company incorporated
        under the laws of the State of Florida having its registered office at
        200 East Las Olas Boulevard, Suite 1900, Fort Lauderdale, Florida 33301;
      

	Page
      3

 

	2.6.9	 	 	“patents”	 	United States Patent No.5,175,416 and European Patent
        No. 0421805 together with any similar p patents which may be granted to
        Net1; 

	 	 	 	 	 	 
	2.6.10	 	 	“SARL”	 	NET1 HOLDINGS SARL (incorporated in Luxembourg);
      

	 	 	 	 	 	 
	2.6.11	 	 	“services”	 	the terms and conditions set out in paragraph 5.1;
      

	 	 	 	 	 	 
	2.6.12	 	 	“SIA NETCARDS” 	 	SIA NETCARDS, registered and incorporated in a accordance
        with the Company Laws of Latvia, having its registered office at 140 Dzimavu
        Street, Riga, LV-1010, Latvia: 

	 	 	 	 	 	 
	2.6.13	 	 	“signature date”	 	the date upon which is agreement is signed by the
        last signing party hereto; 

	 	 	 	 	 	 
	2.6.14	 	 	“Smart Card Scheme”	 	the Universal Electronic Payment System (UEPS) based
        on the patents capable of providing a fully integrated payment and transacting
        system utilising smart card technology; 2.6.15 “Software” the
        Universal Electronic Payment System software and upgrades to such software;
      

	Page
      4 

 

	2.6.16	 	 	“Support Service Agreement”	 	the term and conditions, as laid out in Appendix
        A” hereto and accepted by the SIA NETCARDS 

	 	 	 	 	 	 
	2.6.17	 	 	“territory”	 	Latvia; 

	 	 	 	 	 	 
	2.6.18	 	 	“UEPS”	 	the Universal Electronic Payment System designed
        by Net1 as described and detailed in the complete specification of Net1’s
        application for the patents. UEPS is one out of a possible number of applications
        that uses the patents to provide an integrated, secure and complete payment
        system. 

	3.	INTRODUCTION 
	 	 	 	 
	3.1	 	SIA NETCARDS has complied
        with all its technology sourcing procedures and processes and has appointed
        Net1 as their technology providers for the following contract 

	 	 	 	 
	3.1.1	 	 	Smart Card Scheme. 

	 	 	 	 
	3.2	 	Net1 is able to provide
        the technology support required to delivery the systems referred to in
        3.1.1 above. 

	 	 	 
	3.3 	 	Net1 represents and warrants
        to SIA NETCARDS; - 

	Page
      5

 

	3.3.1 	 	 	That Net1 is an Accredited UEPS system integrator and is able to grant
      SIA NETCARDS the appropriate licences required to operate the Smart Card
      Scheme. 
	 	 	 	 
	3.3.2 	 	 	The entry by Net1 into this agreement shall not result in any breach of
      any law, regulation or contract by which Net1 is bound. 
	 	 	 	 
	3.3.3 	 	 	To the best of Net1’s knowledge the use of the Smart Card Scheme
      by Netcards shall, provided that Netcards complies with all its obligations
      hereunder, not infringe the Intellectual property Rights of any third parties.
    
	 	 	 	 
	4. 	GRANT OF RIGHTS 
	 	 	 
	4.1 	 	Net1 on behalf of SARL hereby grants SIA NETCARDS
      of Latvia a “non-exclusive and non-transferable operator, issuer and
      acquirer licence” to operate the UEPS back-end switch and associated
      Net1 software products on behalf of 3rd parties and itself; to
      issue SIA NETCARDS branded smart cards; to install and manage a POS/ATM
      infrastructure in the territory under the operator terms and conditions
      as incorporated in this document as read with the Appendices hereto, 
	 	 	 
	4.2 	 	The licence granted in terms hereof shall be
      indefinite and shall continue until this agreement is terminated for whatsoever
      reason. 
	 	 	 
	5. 	OBLIGATIONS OF THE PARTIES 
	 	 	 
	5.1 	 	Net1 shall have the responsibility and obligations
      (services) as set out in the “Support Service Agreement” —
      Appendix A. 

	Page
      6

 

	5.2 	 	Net1 shall not, however, be liable to
        SIA NETCARDS or any person for any loss of any nature whatsoever which
        may be suffered or incurred as a result of the use by SIA NETCARDS of
        any information furnished to it by Net1 or as a result of any mistake,
        error or omission of Net1 and SIA NETCARDS hereby indemnities Net1 against
        any claim which may be made against it arising out of the aforegoing.
        The provisions hereof shall apply notwithstanding any negligence or default
        on the part of Net1.

	 	 	 
	5.3 	 	The provisions of 5.2 shall, mutatis
        mutandis, apply to SIA NETCARDS so that it shall not be liable to Net1
        in the circumstances referred to in 5.2

	 	 	 
	6.	CONSIDERATION

       In consideration for the services which are to be rendered
        by Net1 to SIA NETCARDS in terms of this agreement, SIA NETCARDS shall
        pay to Net1 the amounts reflected as stipulated in the Appendices “A,
        B & D” hereto and shall strictly adhere to the terms and conditions
        stated therein.

	 	 	 
	7.	OWNERSHIP OF THE
        INTELLECTUAL PROPERTY

	 	 	 
	7.1 	 	SIA NETCARDS acknowledges that the intellectual
        property an or any part thereof is and shall remain the sole and absolute
        of SARL or its assigns, and that it shall have no right to hire, lease,
        transfer, pledge or assign or otherwise, encumber the whole or any part
        thereof,

	 	 	 
	7.2 	 	All right and title in and to the intellectual
        property and/or any part thereof will at all times remain with SARL or
        its assigns. The use of the intellectual property is licensed and not
        sold to SIA NETCARDS.

	Page
      7

 

	7.3 	 	SIA NETCARDS agrees to preserve
        the software in its present condition and not to abuse or tamper with
        it nor to attempt to the source or object code thereof. Should SIA NETCARDS
        develop applications based around the UEPS, these specific applications
        shall not be named UEPS and Net1 shall not be held responsible for such
        applications: 

	 	 	 	 
	7.4	 	SIA NETCARDS shall ensure
        that all material and comprising the intellectual property shall be marked
        by it to copyright, trade secrets and proprietary rights of Net1 and printed
        thereon and/or that the Net1 logo is placed thereon. 

	 	 	 	 
	7.5	 	SIA NETCARDS shall ensure
        that all its employees are made aware of and comply with its obligations
        regarding the terms and conditions contained in this agreement. 

	 	 	 	 
	7.6	 	SIA NETCARDS agrees not
        to contest nor challenge in proceedings or otherwise, any proprietary
        rights of the owner of the intellectual property, provided that such rights
        shall have been in existence at the date of signature of this agreement
        and insofar as such rights shall relate to the project forming the subject
        matter of this agreement. 

	 	 	 	 
	7.7 	 	SIA NETCARDS acknowledges
        that it has no right to the intellectual property save and except as are
        granted in terms of this agreement. 

	 	 	 	 
	8. 	COPYRIGHT 
	 	 	 	 
	8.1 	 	Without limiting the generality
        of the provisions in 7:- 

	 	 	 	 
	8.1.1 	 	 	all title and copyright in and to the intellectual
        property is owned by SARL and all rights not specifically granted herein
        are reserved by SARL and/or its assigns; 

	Page
      8 

 

	 8.1.2 	 	 	SIA NETCARDS hereby indemnifies Net1
        and SARL against any loss or damage, howsoever arising, as a result of
        any breach of any intellectual property rights of any third party by SIA
        NETCARDS in its use of the intellectual property.

	 	 	 	 
	9.	PATENT ENFORCEMENT

	 	 	 	 
	9.1 	 	If any third party shall
        in the reasonable opinion of Net1 a SIA NETCARDS infringe any of the patents
        or/and the UEPS right the parties shall initiate a strategy to enforce
        the patents and the UEPS rights against the infringing party by: -

	 	 	 	 
	9.1.1	 	 	 initiating a legal or administrative
        procedure for infringement against the third party together with the right
        to enforce any judgement obtained pursuant thereto, or

	 	 	 	 
	9.1.2 	 	 	enter into a cross-licence, settlement
        or other licence agreement with the third party at the discretion of NUEP

	 	 	 	 
	10.	LIMITATION OF LIABILITY

       Subject to 11.1, neither party shall have any claim
        against the other in respect of any loss, liability, damage (whether direct
        or indirect, consequential or otherwise and whether for loss of profits,
        revenue, data or goodwill) or expense of any nature whatsoever which the
        other party may suffer from any cause whatsoever arising out of this agreement
        including the cancellation of this agreement for any reason whatsoever.

       This limitation shall apply in the event that the nature
        of the aforesaid damages is within the contemplation of either party or
        in the event of it being aware or being advised thereof.

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      9 

 

	11.	TERMINATION OR REPUDIATION
        OF THIS AGREEMENT BY SIA NETCARDS OR NET1

	 	 	 
	11.1	 	Should this agreement be unlawfully terminated or
        repudiated by SIA NETCARDS and should such repudiation be accepted by
        Net1 SIA NETCARDS shall be obliged to make immediate payment to Net1 of
        all amounts which would have been payable to it in terms of Appendices
        “A, B & D” had the agreement not been unlawfully terminated
        or repudiated by SIA NETCARDS.

	 	 	 
	11.2 	 	Should this agreement be unlawful terminated or repudiated
        by Net1 (and should such repudiation be accepted by SIA NETCARDS), Net1
        shall not be relieved of any of its obligations which will have accrued
        prior to the termination thereof, provided that Net1 shall, subject to
        Clause 11, be liable for settlement of third party claims that may be
        awarded against SIA NETCARDS as a result of the unlawful termination.

	 	 	 
	11.3 	 	If for any reason SIA NETCARDS goes under provisional
        management or liquidation, the ‘non-exclusive’ licence granted
        in this agreement shall be cancelled with immediate effect.

	 	 	 
	11.4 	 	 If for any reason Net1 goes under provisional management
        or liquidation, the ‘non-exclusive’ licence granted in this
        agreement shall remain with SARL in full force and effect.

	 	 	 
	11.5 	 	This agreement shall terminate within 12 months of
        the date of signature of this contract, unless extended in writing by
        SIA NETCARDS. Each extension of this agreement shall be for a period of
        12 months. In the event that SIA NETCARDS allows this agreement to lapse,
        SIA NETCARDS shall upon termination pay to Net1 outstanding procurement
        orders, fees, invoices, work in progress or 

	Page
      10

 

	 	 	any other financial commitment taken by Net1 on behalf
        of SIA NETCARDS that have been committed by SIA NETCARDS to Net1. The
        ‘non-exclusive’ licence shall be cancelled with immediate effect.
      

	 	 	 
	12. 	BREACH 
	 	 	 
	12.1 	 	Should either party commit a breach of any material
        provision this agreement and fail to remedy such breach within 30 (thirty)
        days of receiving written notice from the other party requiring it to
        do so, then the aggrieved party shall be entitled, without prejudice to
        its other rights in law, to cancel this agreement or to claim immediate
        specific performance of all of the defaulting party’s obligations,
        in either event, without prejudice to the aggrieved party’s rights
        to claim damages subject to the provisions of 10 above. 

	 	 	 
	12.2 	 	Should either party cease trading or operating or
        be placed under judicial management or liquidation, then and in such event
        the aggrieved party shall be entitled to cancel this agreement without
        prejudice to its right to claim damages subject to the provisions of 10
        above. 

	 	 	 
	12.3	 	If this agreement is terminated for any reason at
        any time, Net1 stall be entitled to give written notice to SIA NETCARDS
        requiring it to forthwith cease to use the intellectual property and to
        return to Net1 the intellectual property and software materials and all
        copies thereof. Should SIA NETCARDS fail to immediately return the intellectual
        property, software material and copies for any reason, Net1 shall be entitled
        to take immediate possession thereof from SIA NETCARDS wherever same is
        situate. 

	Page
      11

 

	13. 	FORCE MAJEURE 

	 	 	 
	13.1 	 	Neither party shall be liable for any failure to
        fulfil its obligations under this agreement if and to the extent such
        failure is caused any circumstances beyond its reasonable control, including
        but not limited to flood fire, earthquake, war, tempest, hurricane, industrial
        action, Government restrictions or acts of God. 

	 	 	 
	13.2 	 	Should either party be unable to fulfil a material
        part of its obligations under this agreement for a period in excess of
        6 (six) months due to circumstances beyond its control as contemplated
        in 13.1 above, the other party may in its sole discretion cancel this
        agreement forthwith by written notice. 

	 	 	 
	13.3	 	The parties agree to notify each other promptly of
        any circumstance delaying its performance and to resume performance as
        soon thereafter as is reasonably practicable. 

	 	 	 
	14. 	RELATIONSHIP OF
        PARTIES 

	 	 	 
	14.1 	 	The parties are independent contractors is consummated
        and nothing in this agreement shall be construed as creating a partnership,
        joint venture or employer / employee relationship between the parties
        and neither party shall have any authority to incur any liability on behalf
        of the other party or to pledge the credit of the other party. 

       In addition, neither party shall be deemed to be the
        representative or agent of the other party and all acts done by any party
        shall b cane in its own name as principal. 

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      12

 

	15.	ASSIGNABILITY

       Neither party shall cede any of its rights nor assign
        any of its obligations or grant a sub-licence without first having obtained
        the prior written consent of the other party.

	 	 	 
	16.	SUPPORT

	 	 	 
	 16.1 	 	The parties undertake at all times to
        do all such things, perform all such functions and take all such steps
        and to procure the doing of all such things, the performance of all such
        actions and the taking of all such steps as may be open to them and necessary
        for or incidental to the putting into effect or maintenance of the terms,
        conditions or import of this agreement.

	 	 	 
	16.2 	 	Without derogating from the aforegoing
        the parties shall exert their best endeavours to prevent and guard against
        any infringement or suspected or threatened infringement of the patents
        or any other or condition of this agreement.

	 	 	 
	17.	CONFIDENTIALITY

       The parties undertake that They will not at any time
        during this agreement, or after termination hereof, disclose any information,
        which comes to their knowledge as a result hereof, not being information,
        which comes from an independent third party, which relates to: -

	 	 	 
	17.1 	 	any business or marketing method or
        practice or customers of Net1;

	 	 	 
	17.2 	 	any technical information, know-how
        or process or method of Net1.

	 	 	 
	18.	PUBLICITY AND ANNOUNCEMENTS

	Page
      13

 

	 	The parties intend that
        the details of this agreement shall be kept confidential and that all
        press announcements and related publicity concerned with this agreement
        shall be carried out by the parties in consultation and by agreement.

	 	 	 
	19.	GOVERNING LAW

       This agreement shall be governed and interpreted by
        the substantive laws of South Africa.

      

	 	 	 
	20.	SUBMISSION TO JURISDICTION

       Subject to the provisions of 21 below, any legal action
        or proceedings arising out of or in connection with this agreement may
        be brought in the High Court of South Africa (Witwatersrand Local Division)
        or its successor, if any, and the parties irrevocably submit to the non-exclusive
        jurisdiction of such court and/or the arbitration forum referred to in
        terms of 21 below.

       The parties irrevocably waive any objections they may
        now or hereafter have that such action or proceeding has been brought
        in an inconvenient forum.

	 	 	 
	21.	ARBITRATION

	 	 	 
	21.1	 	 For the purposes of the agreement,
        “dispute” includes, without prejudice to the generality of that
        term, any dispute arising out of or in connection with the agreement and/or
        the interpretation and/or the implementation and/or the termination thereof.

	 	 	 
	21.2 	 	Should any dispute arise, either of
        the parties shall be entitled to require, by written notice to the other,
        that the dispute be submitted to arbitration in terms hereof.

	Page
      14

 

	21.3 	 	Subject to the provisions
        hereof, an arbitration shall be held under the provisions of the arbitration
        laws for the time being in force in the Republic of South Africa, provided
        that;- 

	 	 	 	 	 
	21.3.1 	 	 	the arbitrator shall be,
        if the question in issue is:- 

	 	 	 	 	 
	21.3.1.1	 	 	 	primarily an accounting matter, an independent practising
        accountant of not less than ten years’ standing; 

	 	 	 	 	 
	21.3.1.2 	 	 	 	primarily a legal matter, a practising senior attorney
        of not less than ten years’ standing; 

	 	 	 	 	 
	21.3.1.3 	 	 	 	any other matter, a suitably qualified independent
        person, agreed upon by the parties and, failing such agreement within
        five days after the date on whit the arbitration is demanded, shall be
        appointed by the committee of the Arbitration Foundation of Southern Africa
        (who may appoint one of their number) who may be instructed by any of
        the parties to make the nomination at any time after the expiry of that
        five day period; 

	 	 	 	 	 
	21.3.2	 	 	the arbitration shall be
        held in Johannesburg or Sandton or Randburg at a venue and in accordance
        with formalities and/or procedures determined by the arbitrator, and may
        be held in an informal and summary manner, on the basis that it shall
        at be necessary to observe or carry cut the usual formalities or procedures,
        pleadings and/or discovery, or the strict rules of evidence; 

	 	 	 	 
	21.3.3 	 	 	the arbitrator shall be
        entitled: 

	Page
      15

 

	21.3.3.1	 	 	 	to investigate or cause to be investigated any matter,
        fact or thing which he considers necessary or desirable in connection
        with the dispute and for that purpose shall have the widest powers of
        investigating all the books and records of the party or parties to the
        dispute and the right to take copies or make extracts therefrom and the
        right to have them produced and/or delivered at any reasonable place required
        by him for the aforesaid purpose; 

	 	 	 	 	 
	21.3.3.2	 	 	 	to interview and question under oath representatives
        of any of the parties; 

	 	 	 	 	 
	21.3.3.3	 	 	 	to decide the dispute according to what he considers
        just and equitable in the circumstances; 

	 	 	 	 	 
	21.3.3.4 	 	 	 	to make such award, including an award for costs,
        specific performance, an interdict, damages or a penalty or otherwise
        as he in his discretion may deem fit and appropriate, provided that should
        the arbitrator fail to make an award with regard to costs, the costs of
        the arbitrator shall be borne equally between the parties; 

	 	 	 	 	 
	21.3.4	 	 	the arbitration shall be
        held as quickly as possible after it is demanded with a view to its being
        completed within twenty-one days after it has been so demanded: 

	 	 	 	 
	21.3.5	 	 	immediately after the arbitrator
        has been agreed upon or nominated in terms hereof, any of the parties
        shall be entitled to call upon the arbitrator to fix a date and place
        as to when and where the arbitration proceedings shall be held and to
        settle the procedure and manner in which the arbitration proceedings will
        be held. 

	Page
      16

 

	21.4 	 	Any award that may be made by the arbitrator.-
	 	 	 	 
	21.4.1	 	 	shall be in writing and shall include the reasons
        therefore;

	 	 	 	 
	21.4.2	 	 	shall be final and binding.

	 	 	 	 
	21.4.3 	 	 	shall be carried into effect; and

	 	 	 	 
	21.4.4	 	 	may be made an order of any court to whose jurisdiction
        the parties to the dispute are subject.

	 	 	 	 
	21.5 	 	This arbitration clause
        constitutes an irrevocable consent by the parties to any proceedings in
        terms hereof and no party shall be entitled to withdraw therefrom or to
        claim in such proceedings that he is not bound by this arbitration clause.

	 	 	 
	21.6 	 	This arbitration clause
        shall not preclude any of the parties from obtaining relief by way of
        motion proceedings on an urgent basis from a court of competent jurisdiction
        pending the decision of the arbitrator

	 	 	 
	21.7	 	For the purposes hereof,
        the parties hereby submit themselves to the Witwatersrand Local Division
        of the High Court of South Africa.

	 	 	 
	21.8 	 	This arbitration clause
        is severable from the rest of the agreement and shall remain in effect
        even if the agreement is terminated for any reason.

	 	 
	22.	SEVERABILITY

       My clause in this agreement which may be invalid in
        terms of any statute, by-law or legislation shall be capable of being
        severed from this agreement without in any way affecting the rest of this
        agreement. 

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      17

 

	23. 	ADDRESSES AND NOTICES 
	 	 	 
	23.1 	 	For the purpose of this agreement, including the
        giving of notices in terms hereof and the serving of legal process, the
        parties choose domicilium citandi et executiandi (“domicilium”)
        as follows: 

	 	 	 	 	 	 
	23.1.1	 	 	Net1:	 	4th Floor West Wing, 

      President Place, 

      Cnr Jan Smuts Avenue and Bolton Drive,

      Rosebank, Johannesburg 

      SOUTH AFRICA 
	 	 	 	 	 	 
	23.1.2	 	 	SIA NETCARDS:	 	2 Alunana Street

      Riga 

      LV 1010 

      LATVIA 
	 	 	 	 	 	 
	23.2 	 	Any notice given in connection
        with this agreement may be delivered by hand; or be sent by prepaid registered
        post; or be sent by telefax if the domicilium includes a telefax number,
        to the domicilium chosen by the party concerned. 

       Any notice or process delivery on any party in connection
        with any matter or subject arising out of this agreement or any notice
        shall be deemed to have been delivered if handed to any responsible person
        at the domicilium chosen by any party and it shall not be necessary to
        hand such process or notice to any party personally. 

	 	 	 	 
	23.3 	 	A notice given as set out
        above shall be presumed to have been duly delivered unless the contrary
        is proved: 

	 	 	 	 
	23.3.1 	 	 	on the date of delivery
        if delivered by hand; 

	Page
      18

 

	23.3.2	 	 	and received on the date of dispatch if sent by telefax to the chosen
      telefax number 
	 	 	 	 
	23.3.3 	 	 	on the 14th day from the date of posting including the date of posting
      if posted by pre-paid registered post from within the Republic of South
      Africa; and 
	 	 	 	 
	23.3.4 	 	 	on the 14th day from the date of posting including the date of posting
      if posted from outside the Republic of South Africa. 
	 	 	 
	24. 	GENERAL 

	 	 	 
	24.1 	 	This document contains the entire agreement between
      the parties in regard to the subject matter hereof and neither of them shall
      be bound by any undertakings, representations, warranties, promises or the
      like not recorded herein. 
	 	 	 
	24.2	 	No alteration, variation or cancellation by agreement
      of, addition or amendment to, or deletion from this agreement shall be of
      any force or effect unless in writing and signed by or on behalf of the
      parties hereto. 
	 	 	 
	24.3 	 	No indulgence, extension of time, relaxation
      or latitude which any party (the grantor) may show, grant or allow to any
      other party (the grantee) shall constitute a waiver by the grantor of any
      of his rights and the grantor shall not thereby be prejudiced or stopped
      from exercising any of his rights against the grantee which may have then
      already arisen or which may thereafter arise. 
	 	 	 
	24.4 	 	Following Appendixes are attached to this document:
    

	 	 	 	 
	 	 	Appendix A —	Support Service Agreement Terms & Conditions
	 	 	Appendix B —	Rental of Stratus Model 310 
	 	 	Appendix C — 	Detailed Smart Card Specifications for Pricing and Financial Terms and
      Conditions
	 	 	Appendix D — 	Pricing Structure & Financial Terms & Conditions 

	Page
      19

THUS DONE AND SIGNED BY THE RESPECTIVE PARTIES AS FOLLOWS:

 

 /s/ B.L. Stewart

 

                   B.L.
  Stewart                                                                     

  For   NET1 INVESTMENT HOLDINGS (PROPRIETARY) LIMITED

              Duty
  authorised

 Date: 2nd may 2002 

Place: JHB - South Africa

                                         /s/
  signature                                        
  

  For    SIA NETCARDS

             Duty authorised

 Date: 2nd may 2002

 Place: Riga - Latvia

 BY ITS SIGNATURE HERETO, NET1 HOLDINGS SARL, CONSENTS TO THE PROVISIONS
  OF THIS AGREEMENT AND ACCEPTS ALL THE BENEFITS CONFERRED UPON IT IN TERMS HEREOF

                       B.L.
  Stewart - Director                                            

  For    NET1 HOLDINGS SARL

              Duty
  authorised 

Date: 2nd May 2002 

Place: JHB - South Africa

	APPENDIX A 

 

PROPOSAL TO SIA NETCARDS

SUPPORT SERVICE 

  AGREEMENT 

TERMS & CONDITIONS

 

FROM NET1 INVESTMENT HOLDINGS

  (PROPRIETARY) LIMITED

 

	 	 	 
	Dated	:	2nd May 2002
	Prepared By	:	Brenda L. Stewart
	 	 	General Manager
	 	 	Net1 Investment Holdings (Pty) Ltd.

 SOFTWARE MAINTENANCE & SUPPORT

 Upon signing of the contract, Net1 shall provide software
  maintenance and support according to time and material based as per the labour
  rates specified below:- Invoiced at the end of each month and payable immediately
  on receipt of the invoice to Net1 Investment Holdings (Pty) Ltd 

 NEW SOFTWARE DEVELOPMENT,
   

  ENHANCEMENT & BUG FIXES 

 All requirements for new software development and/or software
  enhancements shall be costed out on a time and material basis. Separate quotation
  shall be provide by Net1. Net1 normally only allows 1 year free of charge for
  bug fixes. In this case we have no alternative but to charge for bag fixes as
  per the labour rates below. 

The labour rates shall be calculated as follows:-

	Labour Rates	 
	 	 
	Junior Programmer	US$ 40.00 per hour
	Programmer	US$ 44.00 per hour
	Analyst	US$ 49.00 per hour
	Senior Analyst	US$ 54.00 per hour
	Team Manager	US$ 54.00 per hour
	Project Manager	US$ 67.00 per hour
	IT Technical Specialist	US$ 80.00 per hour
	Overtime Rates	 
	Saturdays	Hourly Rate X 1.5
	Sundays & Public Holidays	Hourly Rate X 2

 Expenses  

  Return Airfares if necessary to be met by the client 

  Accommodation, transportation & meals to be met by the client 

 PLEASE NOTE  

  The costs involved for problems/work performed and/or solved by Net1, whereby
  the problem relates to an alternate party aud/or end user to the client would
  be invoiced directly to the client for onward recoupment from the party concerned.

 POS TERMINALS SOFTWARE
   

  DEVELOPMENT 

 Net1 shall grant SIA NETCARDS the right to select their POS
  terminals. Any modifications required to the UEPS POS software shall be for
  the account of SIA NETCARDS using the labour rates specified above. 

  

	APPENDIX
        B 

 PROPOSAL TO SIA NETCARDS 

 RENTAL OF STRATUS MODEL 

  310 

 

 FROM NET1 INVESTMENT HOLDINGS 

  (PROPRIETARY) LIMITED 

	 	 	 
	Dated	:	2nd May 2002
	Prepared By	:	Brenda L. Stewart
	 	 	General Manager
	 	 	Net1 Investment Holdings (Pty) Ltd.

	RENTAL
        OF STRATUS MODEL 310 

 

Net1 shall be prepared to rent the Stratus Model 310 Supporting TCP/IP to SIA
  NETCARDS under the following terms and conditions: -

	 ̈	All freight charges from Latvia for returning the equipment
        to Net1 in Johannesburg shall be for the account of SIA NETCARDS.

	 	 
	 ̈	All costs involved for a Net1 specialist to go to
        Latvia for software training (i.e. return airfares, hotel accommodation,
        meals and transport) shall be for the account of SIA NETCARDS.

	 	 
	 ̈	Rental Price payable to Net1 Investment Holdings
        (Pty) Ltd. - US$ 1600 payable up front monthly
        for a maximum period of twelve (12) months. Thereafter renewable by tacit
        consent.

	 	 
	 ̈	SIA NETCARDS to take full responsibility of the equipment
        on delivery, e.g. insurance cover (Value US$ 20,000)

	 	 
	 ̈	The equipment to be returned to Net1 in the same
        working condition as delivered.

  

	APPENDIX
        C 

 PROPOSAL TO SIA NETCARDS
  

  

 DETAILED SMART CARD
  

  SPECIFICATIONS FOR 

  PRICING & FINANCIAL 

  TERMS & CONDITIONS 

 

 FROM NET1 INVESTMENT HOLDINGS 

  (PROPRIETARY) LIMITED 

	 	 	 
	Dated	:	2nd May 2002
	Prepared By	:	Brenda L. Stewart
	 	 	General Manager
	 	 	Net1 Investment Holdings (Pty) Ltd.

	RENTAL
        OF STRATUS MODEL 310 

 

With the experience in the smart card environment for the past
  11 years, Net1 have in-depth knowledge on smart card manufacturing in general
  and it’s associated complexities and risks. 

  

  The micro-chips are manufactured and supplied to Genaplus Card or SAGEM by either
  SGS Thomson or ATMEL. They both have a proven track record for module manufacturing,
  embedding and qualified printed plastic. The process involved to manufacture
  micro-processor based cards is different and far more complex than that required
  for the assembly of memory cards e.g. telephone cards. 

  

  PVC CARDS

  

  PVC Cards are currently utilised by the banks for their banking applications.
  The biggest benefits of PVC Plastic are the quality of their printing (life-span
  10 years) and the fact that additional options can be easily added: - 

  

  • Magnetic Stripes

  • Signature Panels

  • Holograms

  

  All the above options are available and have experienced extensive field testing.
  In addition to the above, PVC cards can be embossed if this ever becomes a requirement.
  In view of the delicate procedure used to mill cavities and embed modules, any
  plastic cards supplied by unknown suppliers to both Gemplus and SAGEM would
  need to pass the qualification process to ensure the reliability and quality
  of the final product. 

 VALIDATION OF PVC CARDS 

Validation of plastic may take on various forms depending on the module embedder, although certain tests should always be carried out.

 These basic tests are: -  

	 Size 

    The length, width and thickness of the card must fall within certain guidelines.
    None of these parameters may vary by more than a certain amount between cards
    or between quarters of a single card. 

	
    De-lamination 

      Tests are carried out under a variety of conditions to ensure that there
      is no lifting or bubble forming of the lamination layer. To carry out this
      test thoroughly a dark logo should be printed on the cards supplied for
      the tests. The reason for this is the de-lamination will occur quicker and
      easier on dark logo’s and testing must be carried out on worst case
      scenarios. 

      

    

  
	
    Magnetic Stripe 

      The magnetic stripe must be compliant with ISO 7811 and the average amplitude
      of the magnetic signal must fall within certain guidelines. 

      

    

  
	
    Reliability 

      Heat and torsion tests are carried out to ensure that warpage, cracking,
      lamination, fading of colours and altering of dimensions does not occur.
      In addition this test should not cause the cards to stick together or damage
      the magnetic stripes. 

  

	
    Electrostaticity 

      The card should be able to slip easily against each other i.e. the materials
      used should not accumulate electrostatic charges. 

    Once the above tests have been carried out further tests
      are performed to ensure: - 

  
	
    Milling of the cavity 

      The nature of the plastic must be compatible with the processes and, tools
      used to mill the cavity. 

      

    

  
	
    Strength of the bond 

      The glue used must adhere to the plastic support. Tests are also performed
      to ensure that reactions which could reduce the adhesion do not occur. 

  

 FINAL TESTING  

  Final physical tests are performed on random cards within a batch : - 

	
    Visual 

      The physical appearance of the card is visually checked to ensure that the
      module has been correctly embedded in the cavity. 

      

    

  
	
    Torsion 

      This test is to ensure that the micro-module do not pop out the card. 

      If any one of the above checks fail, the whole batch is put aside and every
      card is checked and those which fail are rejected. 

  

 PVC PRINTED 32 BYTE MICROPROCESSOR SMART CARD  

  SUPPLIER - SAGEM (ATMAL CHIP) 

  For use as client cards or merchant cards depending an the transaction volumes
  

  Including : - 

	 ̈	Full color printing - FRONT & BACK (France)
	 	 
	 ̈	lnitialisation at Net1 premises (i.e. UEPS software loading to the chip)
	 	 
	 ̈	Signature Panel

PVC PRINTED MPCOS-EMV 8 KBYTE MICROPROCESSOR SMART CARD 
  

  SUPPLIER - GS THOMSON CHIP 

  For use as client cards or merchant cards depending on the transaction volumes.

  Including : - 

	 ̈	Full color printing - FRONT & BACK (France)
	 	 
	 ̈	lnitialisation at Net1 premises (i.e. UEPS software loading to the chip)
	 	 
	 ̈	Signature Panel

ST16601 (1 KBYTE) MICROPROCESSOR SMART CARD  

  Depending on Functionality Requirements Including : - 

  Including : - 

	 ̈	Full color printing - FRONT & BACK (France)
	 	 
	 ̈	lnitialisation at Net1 premises (i.e. UEPS software loading to the chip)

  

	APPENDIX
        D

  

PROPOSAL TO SIA NETCARDS 

  

PRICING STRUCTURE &
   

  FINANCIAL TERMS &
   

  CONDITIONS 

  

FROM NET1 INVESTMENT HOLDINGS 

  (PROPRIETARY) LIMITED 

	 	 	 
	Dated	:	2nd May 2002
	Prepared By	:	Brenda L. Stewart
	 	 	General Manager
	 	 	Net1 Investment Holdings (Pty) Ltd.

  

	PRICING
        STRUCTURE & FINANCIAL TERMS & CONDITIONS

	1.	SMART CARDS
	 	 
	2.	U.E.P.S TECHNOLOGY FEES
	 	 
	3.	FINANCIAL TERMS & CONDITIONS

 SCHEDULE 1
  

  

	SMART
        CARDS 

  

PVC PRINTED 32 BYTE MICROPROCESSOR SMART CARD  

  SUPPLIER - SAGEM (ATMAL CHIP) 

  For use as client cards or merchant cards depending an the transaction volumes
  

  Including : - 

	 ̈	Full color printing - FRONT & BACK (France)
	 	 
	 ̈	lnitialisation at Net1 premises (i.e. UEPS software loading to the chip)
	 	 
	 ̈	Signature Panel

Please note that the smart card supplers now charge as per
  the batch quantity to be embedded and delivered. We can no longer put in a large
  order and request it to be delivered over a few months. The unit price charged
  is for the batch. 

 PRICES 

	Quantities	1	 -	5,000	Unit Price US$5.15
	 	5,001	 -	10,000	Unit Price US$5.05
	 	10,00	 -	19,999	Unit Price US$4.95
	 	20,000	 -	50,000	Unit Price US$4.85
	 	50,000	- 	 100,000	Unit Price US$4.75
	 	100,000 	- 	- 200,000	Unit Price US$4.65

 PVC PRINTED MPCOS-EMV 8 BYTE MICROPROCESSOR SMART CARD 
  

  SUPPLIER - GEMPLUS - SGS THOMSON CHIP 

  For use as client cards or merchant cards depending an the transaction volumes
  

  Including : - 

	 ̈	Full color printing - FRONT & BACK (France)
	 	 
	 ̈	lnitialisation at Net1 premises (i.e. UEPS software loading to the chip)
	 	 
	 ̈	Signature Panel

Please Note that Gemplus are always more expensive on the small
  batches 

 PRICES 

	Quantities	1	 -	5,000	Unit Price US$5.30
	 	5,001	 -	10,000	Unit Price US$5.15
	 	10,00	 -	19,999	Unit Price US$5.05
	 	20,000	 -	50,000	Unit Price US$4.95
	 	50,000	- 	 100,000	Unit Price US$4.85
	 	100,000 	- 	- 200,000	Unit Price US$4.75

ST16601 (1 KBYTE) MICROPROCESSOR SMART CARD

  Depending on Functionality Requirements

  Including : -

	 ̈	Signature Panel
	 	 
	 ̈	lnitialisation at Net1 premises (i.e. UEPS software loading to the chip)

 PRICES

  Surface printed ABS Cards                US$
  2.75

	 ̈	Full color printing - FRONT and black and white BACK

  Blank ABS Smart Cards

	 ̈	Full color printing FRONT only

PAYMENT TERMS & CONDITIONS

	LOGO Artwork Up Front	US$ 550.00 per logo
	Delivery	Exworks JHB Bonded Warehouse
	Payment	50% Upfront on placement of the order with Net1
	 	50% On advise that goods are ready for collection 0 Net1
	Delivery	Exworks - Net1 JHB Bonded Warehouse

 DELIVERY TIME FRAMES 

	 ̈	2-3 weeks for creation of the ‘chromalin’
	 	 
	 ̈	After approval of the ‘chromalin’ 6 weeks for PVC printing
	 	 
	 ̈	2-3 weeks for module manufacturing & embedding of the chips
	 	 
	 ̈	4 days for delivery from France
	 	 
	 ̈	1-2 weeks for card initialisation at APLITEC premises (Depending on volumes
      and machine availability at the time.)

 ALL SMART CARDS TO DISPLAY THE NET1 LOGO ON THE REVERSE SIDE OF THE
  SMART CARD.  

 SCHEDULE 2

  

	U.E.P.S. TECHNOLOGY
        FEES 

 

 In order for Net1 to continue developing additional functionality
  around the U.E.P.S. Technology as well as keeping up with the costs of renewals
  of patents and trademarks, it is necessary for Net1 to levy a royalty fee to
  end-user licence holders. The fees levied by Net1 in respect of the U.E.P.S
  Patents for the use of the smart card technology shall be dependent upon the
  actual size of the system. The fee structure is divided into two segments as
  shown below : - 

 UEPS MANAGEMENT BACKEND SYSTEM

Include the entire UEPS Back-end System as well as the added value smart card application products such as - 

	Instant Bank Account

	Savings Application

	Retail

	S2S Wage

	S2S Enrol

	Peusion/Welfare

	Transportation

	Fuel

	3rd Party Payments

	Loans / Credit Facility

	Money transfers - Local & Incoming

	Pre-paid Utilities

 These prices will not apply to yourselves as are
  not purchasing the UEPS Version 10 Back-End System with
  the smart suite of applications 

 2. LICENCE FEES FOR PATENTS 

 PRICING IS CALCULATED ON QUANTITIES SOLD NOT ISSUED 

 SMALL SYSTEM  

  The small system category only applied to our small PC Based Version 8 UEPS
  Systems managing banking functionality only. We are no longer promoting this
  product. 

 MEDIUM SYSTEM 

  Between 250-2499 POS and/or 001 —249,999 smart cards 

	Licence Fee	US$ 50,000 per annum, per end user
	Per Issuer or Acquirer	payable up front & thereafter annually
	 	on the anniversary date of signing the
	 	contract with Net1

 LARGE SYSTEM 

  More than 2500 POS and/or the following quantities stipulated in the table overleaf

 Annual Licence Fee 

	Per issuer or Acquirer	Payable up front and thereafter
      annually on the anniversary date of signing the contract with Net1.

	250,000 —500,000 smart cards	US$100,000
	 	 
	500,001 — 750,000 smart cards	US$150,000
	 	 
	750,001 — 1,000,000 smart cards	US$200,000
	 	 
	1,000,001 —1,250,000 smart cards	US$250,000
	 	 
	1,250,001— 1,500,000 smart cards	US$300,000

 SCHEDULE 3

  

	FINANCIAL TERMS
        & CONDITIONS 

 

	
    All hardware equipment prices are quoted In United States
      Dollars and are payable in United States Dollars Equipment Prices have been
      calculated at Rand 10.00 = Euro 1. Any movement in this rate will be for
      the account of the client

      

    

  
	
    Prices for the smart cart are EXWORKS JHB Bond Warehouse.
      All shipping export documentation and costs are for the account of the client.

      

    

  
	
    Payment terms and conditions are specified under each
      schedule.

      

    

  
	
    Labour rates as stipulated in the “Support Service
      Agreement” to be reviewed annually

      

    

  
	
    Bank account for Net1 Investment Holdings (Pty) Ltd
      into which all payments for smart cards, software development and software
      maintenance & support shall be made Nedbank Limited, International Account
      No. USA A\C 7S39 017350

      

    

  
	
    The upfront and annual licence fee per issuer or acquirer
      of the system shall be made payable to Net1 Holdings SARL. The bank account
      shall be specified on the Net1 Holdings SARL invoice.

      

    

  

ADDENDUM I

 “NON EXCLUSIVE” UEPS LICENCE 

  AGREEMENT 

Between

NET1 INVESTMENT HOLDINGS (PROPRIETARY) LIMITED

      And 

SIA NETCARDS 

 LICENCE FEES FOR PATENTS ON RIGA TOLL SYSTEM and RIGA PARKING SYSTEM
  

Due to your current financial and operational positions, it
  is further agreed that the Licence Fees will be adjusted as follows for the
  year ended 2003. The pricing of the original agreement will remain in force
  for the year 2002. 

 These terms will only apply if payment of the outstanding
  balance of US$ 12,500 relating to licence fees for the year 2002, and the revised
  licence fee of US$ 10,000 for year 2003 are paid as follows: US$ 12,500.00 to
  be paid by early January 2004 US$ 10,000 for revised licence fees for the year
  2003 to he paid in May 2004 Licence lees for the year 2004 are due for invoicing
  in May 2004 and we anticipate that these fees are paid within two months of
  the due date. i.e. Au 2004. 

 If and when any further or new systems other than the Riga
  Toll System and Riga Parking System (including the parking system of approximately
  25 parking meters in Jurmala) arc implemented, the original licence fee structure
  will once again become effective. 

	Licence Fee 	US$ 10,000 per annum, payable up front and thereafter
        annually on the anniversary date of signing the original contract with
        Net1. 

-2-

 THUS DONE AND SIGNED BY THE RESPECTIVE PARTIES AS FOLLOWS: 

                                         /s/
  B Stewart                                   
    

  For: NET INVESTMENT HOLDINGS (PROPRIETARY) LIMITED 

            Duly authorised 

Date: 04/01/2004  

Place: JHB  

                   /s/Juris
  Retenais / Juris Retenais, director         

  For: SIA NETCARDS 

           Duly authorised 

 Date: 12/12/2003  

Place: Riga, Latvia

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]