24. COMMITMENTS AND CONTINGENCIES

Operating lease commitments

The Company leases certain premises. At June 30, 2015, the future minimum payments under operating leases consist of:

Due within 1 year	$	3,828
Due within 2 years	$	2,133
Due within 3 years	$	794
Due within 4 years	$	314
Due within 5 years	$	107

Operating lease payments related to the premises and equipment were $6.8 million, $7.5 million and $15.9 million, respectively, for the years ended June 2015, 2014 and 2013, respectively.

Capital commitments

As of June 30, 2015 and 2014, the Company had outstanding capital commitments of approximately $3.4 million and $0.2 million, respectively.

Purchase obligations

As of June 30, 2015 and 2014, the Company had purchase obligations totaling $5.0 million and $5.5 million, respectively. The purchase obligations as of June 30, 2015, primarily include inventory that will be delivered to the Company and sold to customers in the next twelve months.

Guarantees

The South African Revenue Service and certain of the Company's customers, suppliers and other business partners have asked the Company to provide them with guarantees, including standby letters of credit, issued by a South African bank. The Company is required to procure these guarantees for these third parties to operate its business.

Nedbank has issued guarantees to these third parties amounting to ZAR 134.5 million ($11.0 million, translated at exchange rates applicable as of June 30, 2015) and thereby utilizing part of the Company's short-term facility. The Company in turn has provided nonrecourse, unsecured counter-guarantees to Nedbank for ZAR 125.0 million ($10.2 million, translated at exchange rates applicable as of June 30, 2015). The Company pays commission of between 0.2% per annum to 2.0% per annum of the face value of these guarantees and does not recover any of the commission from third parties.

The Company has not recognized any obligation related to these counter-guarantees in its consolidated balance sheet as of June 30, 2015. The maximum potential amount that the Company could pay under these guarantees is ZAR 134.5 million ($11.0 million, translated at exchange rates applicable as of June 30, 2015). The guarantees have reduced the amount available for borrowings under the Company's short-term credit facility described in Note 12.

Contingencies

Securities Litigation

On December 24, 2013, Net1, its chief executive officer and its chief financial officer were named as defendants in a purported class action lawsuit filed in the United States District Court for the Southern District of New York alleging violations of the federal securities laws. The lawsuit was brought on behalf of a purported shareholder of Net1 and all other similarly situated shareholders who purchased Net1's securities between August 27, 2009 and November 27, 2013. On July 23, 2014, the Court appointed a lead plaintiff and lead counsel. On September 22, 2014, the lead plaintiff filed an amended complaint alleging that Net1 made materially false and misleading statements in that it failed to disclose material adverse information and misrepresented the truth about the Company's finances and business prospects. The amended complaint seeks unspecified damages on behalf of the lead plaintiff and all other similarly situated shareholders who purchased Net1's securities between January 18, 2012 and December 4, 2012, which is a shorter class period than proposed in the original complaint. On January 16, 2015, Net1 filed a motion to dismiss plaintiff's amended complaint for failure to state a claim. On March 6, 2015, plaintiff filed an opposition to Net1's motion to dismiss its complaint, and the Company filed a reply brief on March 27, 2015. No motion for class certification has been filed. The Company believes this lawsuit has no merit and intends to defend it vigorously.

The Company is subject to a variety of insignificant claims and suits that arise from time to time in the ordinary course of business.

Management currently believes that the resolution of these matters, individually or in the aggregate, will not have a material adverse impact on the Company's financial position, results of operations and cash flows.