Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 126

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 4A
Chunk 126
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 to which the company or any of its
affiliates was a party.

Additional information about our related party transactions
is included in Note 28 to the audited consolidated financial statements.

Registration Rights Agreement

In connection with the Offering,
we entered into a registration rights agreement with our Chief Executive Officer, Isaias (Zak) Jose Calisto. The registration rights agreement
grants Mr. Calisto and his designees specified registration rights in connection with any transfer of ordinary shares issuable to us or
our affiliates upon conversion of any shares. As a result, Mr. Calisto may require us to use reasonable best efforts to effect the registration
under the Securities Act of our ordinary shares that he or his affiliates own, in each case at our own expense. The registration rights
agreement also provides that we will indemnify Mr. Calisto in connection with the registration of our ordinary shares.

Loan Arrangements

Given our commitment to South
Africa’s broad-based Black economic codes of good practice, we entered into an Enterprise Development Loan Agreement with Bumbene
House (Proprietary) Limited in February 2020 under which we provided Bumbene House (Proprietary) Limited with a loan in an aggregate amount
of ZAR 11.0 million. The loan was extended by a further ZAR 8.4 million during the 2021 financial year, ZAR 6.4 million during the 2023
financial year, another ZAR 2.4 million in the 2024 financial year and ZAR 0.5 million in the 2025 financial year. Amounts due under this
loan bear no interest, have no fixed terms of repayment and are repayable on demand. As at February 28, 2025, ZAR 28.7 million of this
loan remained outstanding.

Acquisitions

Karooooo Logistics (Pty) Ltd: In September 2021, the Group strategically acquired 70.1% of the shares and voting interest in Karooooo Logistics (Picup), a logistics
cloud- based disruptive technology company located in South Africa. The acquisition may be a related party transaction given that Isaias
(Zak) Jose Calisto, founder and CEO of Karooooo, had been working with Picup prior to its acquisition by the Group, to build the Picup
business for scale, including through a ZAR 4.5 million loan from Onecell Holdings (Pty) Ltd of which Mr