Document:

Proof - tm215468d8_sc13ga [split 0002].htm

 

Exhibit 10.3

 

CAPITALISATION AGREEMENT

 

entered into between:

 

ISAIAS JOSE CALISTO

 

(NRIC S2771508G)

 

(a Singapore permanent resident with his
residential address situated at 17 Blair Road, Singapore 089917)

 

(“IJ Calisto”)

 

and

 

KAROOOOO PTE. LTD. (previously called
Karoo Pte. Ltd)

 

(Registration 201817157Z)

 

(a company incorporated and registered
in Singapore with its registered office situated at 10 Anson Road #12-14, International Plaza, Singapore, 079903)

 

(“Karooooo”)

 

		1.	INTRODUCTION

 

		1.1.	IJ Calisto is the registered and beneficial holder of 1000 (one thousand) ordinary no par value
shares in the issued share capital of Karooooo, constituting 100% (one hundred per cent) of the total issued share capital of Karooooo
(“Karooooo Shares”).

 

		1.2.	On or about 4 July 2019 IJ Calisto and Karooooo (collectively the “Parties”)
entered into an agreement pursuant to which, amongst other things:

 

		1.2.1.	IJ Calisto entered into an interest free shareholder loan account against Karooooo in an amount
of ZAR2,748,480,000 (two billion seven hundred and forty eight million four hundred and eighty thousand South African Rand), converted
into SGD266,415,930 (two hundred and sixty six million four hundred and fifteen thousand nine hundred and thirty Singapore Dollars)
at an exchange rate of SGD1 = ZAR10.3165, which, in turn, amounted to USD194,867,241 (one hundred and ninety four million eight
hundred and sixty seven thousand and two hundred and forty one United States Dollars) (the “Calisto Loan”).

 

		1.2.2.	The Calisto Loan facilitated the acquisition by Karooooo of 204,500,000 (two hundred and four million
five hundred thousand) shares in the share capital of Cartrack Holdings Limited (Registration No. 2005/036316/06) (“Cartrack”),
which is listed on the securities exchange operated by the JSE Limited in South Africa (“JSE”).

 

     

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		1.2.3.	The Calisto Loan is repayable on demand by IJ Calisto and, if so demanded, IJ Calisto has the option
to elect that the Calisto Loan be repaid in cash or by way of the delivery of Cartrack shares, valued at the same price at which
Karooooo acquired them (being ZAR 13.44 per Cartrack share).

 

		1.2.4.	The outstanding Calisto Loan as at the date of signature of this agreement is USD194,242,000 (one
hundred and ninety four million two hundred and forty two thousand United States Dollars) and Karooooo currently owns 203,328,943
(two hundred and three million three hundred and twenty eight thousand and nine hundred and forty three) shares in the share capital
of Cartrack.

 

		1.3.	Karooooo, which is the current majority shareholder of Cartrack, is considering entering into a
proposed transaction which, if entered into, will result in the following (collectively the “Proposed Transaction”) –

 

		1.3.1.	Karooooo making a cash offer to registered shareholders of Cartrack (“Cartrack Shareholders”),
other than Karooooo and certain other excluded Cartrack Shareholders, to acquire their Cartrack shares by way of a scheme of arrangement
in terms of section 114(1) of the South African Companies Act, No. 71 of 2008 (“SA Companies Act”) to be proposed
by the board of directors of Cartrack between Cartrack and such Cartrack Shareholders (“Scheme”). The offer
price in terms of the Scheme will be an amount equal to the volume weighted average price of Cartrack Shares traded on the JSE
over the 30 (thirty) trading days up to and including the last practical date before Karooooo makes the firm offer to the Cartrack
Shareholders.

 

		1.3.2.	In connection with the Proposed Transaction, Karooooo will permit Cartrack Shareholders from whom
it purchases shares pursuant to the Scheme to elect to use all or a portion of the cash consideration received pursuant to the
Scheme to subscribe for shares in Karooooo at a price equal to the repurchase price at which Karooooo acquired such Cartrack Shareholder’s
ordinary shares in Cartrack in a transaction exempt from, or not subject to, the registration requirements under the U.S. Securities
Act of 1933, as amended (the “Reinvestment Offer”).

 

		1.3.3.	If the Scheme and the Reinvestment Offer become operative, Karooooo will become the registered
and beneficial owner of all the Cartrack Shares, which shares are proposed to be delisted from the JSE, and the Karooooo Shares
are proposed to be listed on the NASDAQ (the “NASDAQ Listing”) with an inward listing on the JSE.

 

     

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		1.3.4.	In connection with the proposed Karooooo NASDAQ Listing, IJ Calisto may offer certain of his Karooooo
Shares and Karooooo may offer new Karooooo Shares in a public offering in the United States (the “Offering”).

 

		1.4.	In order to facilitate the implementation of the Proposed Transaction, in particular the Offering,
IJ Calisto wishes to capitalise the Calisto Loan by subscribing for further Karooooo Shares, which Karooooo wishes to issue to
IJ Calisto, on the terms and conditions set out in this agreement.

 

		2.	SUBSCRIPTION FOR KAROOOOO SHARES

 

		2.1.	IJ Calisto hereby agrees to subscribe for, and Karooooo hereby agrees to allot and issue, 20,331,894
(twenty million three hundred and thirty one thousand eight hundred and ninety four) Karooooo Shares (the “Subscription
Shares”).

 

		2.2.	Notwithstanding the date of signature of this agreement and the date upon which the Subscription
Shares are issued to IJ Calisto, the Subscription Shares shall be allotted and issued on and with effect on 17 November 2020
(or such other date as may be agreed between the Parties in writing) (the “Closing Date”), from which date all
risk in and benefits attaching to them shall be deemed to have passed to IJ Calisto.

 

		2.3.	The aggregate subscription price payable by IJ Calisto to Karooooo for the Subscription Shares
is USD194,242,000 (one hundred and ninety four million two hundred and forty two thousand United States Dollars), being an amount
equal the outstanding Calisto Loan (the “Subscription Price”).

 

		2.4.	The Parties hereby agree that, on the Closing Date, IJ Calisto will be deemed to have demanded
repayment of the Calisto Loan from Karooooo. The liability of IJ Calisto to Karooooo to discharge the Subscription Price will then
be set-off against Karooooo’s liability to repay the Calisto Loan, thereby discharging in full IJ Calisto’s liability
to pay the Subscription Price and the liability of Karooooo to IJ Calisto to repay the Calisto Loan. This set-off arrangement will
result in the Calisto Loan being discharged in full and Karooooo will no longer be indebted to IJ Calisto in respect of the Calisto
Loan.

 

		2.5.	Karooooo undertakes and agrees to allot and issue the Subscription Shares to IJ Calisto on the
Closing Date, credited as fully paid-up.

 

		2.6.	Following the subscription of the Subscription Shares, IJ Calisto will be the registered and beneficial
holder of 20,332,894 (twenty million three hundred and thirty two thousand eight hundred and ninety four) Karooooo Shares.

 

     

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		3.	CLOSING

 

		3.1.	On the Closing Date, representatives of the Parties shall meet at such place as may be mutually
agreed between the Parties in writing. At that meeting Karooooo shall deliver to IJ Calisto:

 

		3.1.1.	an original share certificate in respect of the Subscription Shares;

 

		3.1.2.	a certified copy of a resolution passed by the sole shareholder of Karooooo approving the allotment
and issue of the Subscription Shares to IJ Calisto;

 

		3.1.3.	a certified copy of a resolution passed by the board of directors of Karooooo approving, inter
alia, the:

 

		3.1.3.1.	allotment and issue of the Subscription Shares to IJ Calisto; and

 

		3.1.3.2.	issue of appropriate new share certificates to IJ Calisto for the Subscription Shares registered
in his name;

 

		3.1.4.	such other documents as are necessary in order to enable IJ Calisto to procure the registration
of the Subscription Shares into his name.

 

		3.2.	Notwithstanding the provisions of clause 3.1 above, the Parties shall be permitted to dispense
with a physical meeting on the Closing Date in which case the deliverables required to be delivered by Karooooo to IJ Calisto shall
be delivered remotely or electronically on the Closing Date to either IJ Calisto or his authorised representative.

 

		4.	UNDERTAKING BY IJ CALISTO

 

IJ Calisto
undertakes that, between the date of signature of this agreement and the Closing Date (unless this agreement never becomes effective),
he will not demand repayment of the Calisto Loan from Karooooo.

 

		5.	GENERAL

 

		5.1.	This agreement constitutes the sole record of the agreement between the Parties in regard to the
subject matter hereof and no Party shall be bound by any express or implied term, representation, warranty, promise or the like
not recorded herein. This agreement supersedes all prior agreements, whether oral or written, between the Parties in regard to
the subject matter hereof, including the Capitalisation Agreement entered into by the Parties on 30 October 2020).

 

     

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		5.2.	The address for service of notice on the Parties for all purposes under this agreement shall be
the addresses set out against the names of the Parties at the beginning of this agreement.

 

		5.3.	No addition to, variation, novation or agreed cancellation of any provision of this agreement shall
be binding upon the Parties unless reduced to writing and signed by or on behalf of the Parties.

 

		5.4.	No indulgence or extension of time which a Party may grant to any other Party shall constitute
a waiver of or limit any of the existing or future rights of the grantor in terms hereof, save in the event and to the extent that
the grantor has signed a written document expressly waiving or limiting such right.

 

		5.5.	The terms of this agreement shall be governed by and construed in accordance with the laws of Singapore.

 

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

 

[Remainder
of this page intentionally left blank]

 

     

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Signed by the Parties on the following dates
and at the following places respectively:

 

	 	ISAIAS JOSE CALISTO
	 	 
	Signature:	/s/ Isaias Jose Calisto	 
	 	 	 
	 	who warrants that he / she is duly authorised thereto
	 	 
	Name:	Isaias Jose Calisto	 
	 	 	 
	Date:	18 November 2020	 
	 	 	 
	Place:	Kingdom of Thailand - Bangkok	 

 

	For and on

 behalf of:	KAROOOOO PTE. LTD.
	 	 
	Signature:	/s/ Isaias Jose Calisto	 
	 	 	 
	 	who warrants that he / she is duly authorised thereto
	 	 
	Name:	Isaias Jose Calisto	 
	 	 	 
	Title:	Director	 
	 	 	 
	Date:	18 November 2020	 
	 	 	 
	Place:	Kingdom of Thailand - BangkokProof - tm215468d8_sc13ga [split 0002].htm

                        

Exhibit 10.4

 

LOAN AGREEMENT

 

between

 

ORIENT VICTORIA PTE. LTD

 

(Registration No. 201508743W)

 

(“The Lender”)

 

And

 

KAROOOOO PTE. LTD

 

(Registration No. 201817157Z)

 

(“The Borrower”)

 

     

     

    

 

		1.	LOAN

 

		1.1.	The Lender agrees to lend and advance up to USD 65,000,000 to the Borrower for the sole purpose
of facilitating the takeover of Cartrack Holdings Limited by Karooooo Pte. Ltd.

 

		1.2.	The Borrower acknowledges that it will become truly and lawfully indebted to the Lender and agrees
to repay the Loan amount and any interest attracted thereto to the Lender as quickly as possible.

 

		2.	INTEREST AND UNDERTAKINGS BY THE BORROWER

 

		2.1.	The Loan shall bear interest at 1.25% per annum.

 

		2.2.	The Borrower will not declare any dividends until the loan amount and interest is fully repaid
to the Lender in USD.

 

		2.3.	The Borrower will repay the Lender into the Lenders Bank Account in Singapore as indicated in Annexure
1.

 

		2.4.	The Borrower will not use the loan as working capital for the business.

 

		3.	RELATIONSHIP OF THE PARTIES

 

The relationship of the Parties inter se shall
be governed by the terms of this Agreement and nothing contained herein shall be deemed:

 

		3.1.	to constitute a partnership between the Parties; or

 

		3.2.	entitle or authorise either Party to incur liability on behalf of the other, unless specifically
stated otherwise in this agreement.

 

		4.	DISPUTES

 

Having regard to the high degree of good faith that
must exist between the Parties, the Parties agree to do their utmost to ensure that disputes between them are settled in the courts
of Singapore and under Singapore law.

 

		5.	CESSION, ASSIGNMENT AND CHANGE OF CONTROL

 

Neither Party shall be entitled to cede their rights,
assign their rights and obligations or delegate their obligations hereunder to any person without the prior written consent of
the other Party, which consent may be withheld.

 

     

     

    

 

		6.	DOMICILIUM AND NOTICES

 

		6.1.	The Parties choose as their domicilia citandi et executandi for all purposes under this
Agreement, whether in respect of court process, notices or other documents or communications of whatsoever nature (including the
exercise of any option), the addresses set out below:

 

The Borrower:     17 Blair Road
Singapore

 

The Lender:        17 Blair Road
Singapore

 

		6.2.	Each Party shall be entitled from time to time, by written notice to the other, to vary its domicilium
citandi et executandi to any other physical address. Any notice given and any payment made by either Party to the other which:

 

		6.2.1.	is delivered by hand during the normal business hours of the addressee at the addressee’s
domicilium citandi et executandi for the time being, or which is transmitted by facsimile, shall be presumed to have been
received by the addressee at the time of delivery or transmission, as the case may be;

 

		6.2.2.	is posted by prepaid registered post to the addressee at the addressee’s domicilium citandi
et executandi for the time being shall be presumed to have been received by the addressee on the seventh day after the date
of posting;

 

		6.2.3.	sent by fax to its chosen fax number shall be deemed to have been received on the date of despatch
(unless the contrary is proved); or

 

		6.3.	Notwithstanding the provisions of the aforegoing clauses, in the event that a written notice or
any process is actually received by a Party, such receipt shall be valid for all purposes under this Agreement notwithstanding
that it was not received at a Party’s chosen domicilium citandi et executandi.

 

		7.	GENERAL

 

		7.1.	No relaxation, indulgence or extension of time granted by any Party to another Party shall be construed
as a waiver of any of the Grantor’s rights in terms hereof, or a novation of any of the terms of this Agreement or estop
the Grantor from enforcing strict and punctual compliance with the terms of this Agreement.

 

		7.2.	No variation or amendment of, addition to, consensual cancellation of or waiver of any right arising
in terms of this Agreement shall be of any force or effect unless it is reduced to writing and signed by a duly authorised representative
of each of the Parties.

 

     

     

    

 

		7.3.	This Agreement constitutes the entire agreement between the Parties in relation to the subject
matter hereof and no Party shall accordingly be bound by any undertaking, representation or warranty not recorded herein.

 

		7.4.	Neither Party has been induced into entering into this Agreement or to undertake any of the respective
obligations which they have undertaken in terms hereof by any representations, warranties, whether expressed or implied, nor any
other matter or condition other than as recorded herein.

 

		7.5.	If any provision of this Agreement is wholly or partially invalid, unenforceable or unlawful, then
this Agreement shall be severable in respect of the provision in question (to the extent that it is invalid, unenforceable or unlawful)
and the remaining provisions of this Agreement shall remain of full force and effect.

 

		7.6.	Both Parties have the power to enter into the Agreement and to perform their obligations under
it and have taken all necessary corporate and/or other actions to authorize the execution, delivery and performance of this Agreement.

 

     

     

    

 

	FOR:	ORIENT VICTORIA PTE. LTD	 
	 	 	 
	Signature:	
        /s/ I.
        J. Calisto
	 
	 	who warrants that he / she is duly authorised thereto	 
	 	 	 
	Name:	
        I. J.
        Calisto
	 
	 	 	 
	Date:	
        20201222
	 
	 	 	 
	Place:	
        Johannesburg
	 
	 	 	 
	Witness:	
        /s/
        Amelia Sherman
	 

 

	KAROOOOO PTE. LTD	 
	 	 
	
        /s/ I.
        J. Calisto
	 
	who warrants that he / she is duly authorised thereto	 
	 	 
	
        I. J.
        Calisto
	 
	 	 
	
        20201222
	 
	 	 
	
        Johannesburg
	 
	 	 
	
        /s/
        Amelia Sherman
	(Witness)
	 

 

     

     

    

 

	Addendum
        to Loan Agreement

         

        between

         

        ORIENT VICTORIA PTE. LTD

         

        (Registration No. 201508743W)

         

        (“The Lender”)

         

        And

         

        KAROOOOO PTE. LTD

         

        (Registration No. 201817157Z)

         

        (“The Borrower”)

 

     

     

    

 

Addendum to Loan Agreement

 

Parties

 

	1.	Orient Victoria Pte. Ltd. Registration 201508743W, a company
                                       incorporated in Singapore with registered office at No 2 Aljunied Avenue 1, Framework Building
                                       2, #06-11 Singapore 389977 (Lender).

 

	2.	Karooooo Pte. Ltd. Registration 201817157Z, a company
                                       registered in Singapore with registered office at 10 Anson Road #12-14 International Plaza
                                       Singapore 079903 (Borrower).

 

 

 

	1.	Both Parties agree to change clause 1 In the original agreement dated 22 December
                                       2020 to the below:

 

	1.1.	The Lender agrees to lend and advance up to USD 65,000,000 to the
                                  Borrower for the sole purpose of facilitating the takeover of Cartrack Holdings Limited by Karooooo
                                  Pte. Ltd. As to avoid any doubt, this loan can not be used for operational working capital.

 

	1.2.	The Borrower acknowledges that it will become truly and lawfully
                                  indebted to the Lender and agrees to repay the Loan amount and any interest attracted thereto
                                  to the Lender as quickly as possible.

 

	1.3.	The Lender can only demand payment after the first 12 month
                                  following the implementation of the Scheme and the JSE inward listing or if the Borrower is
                                  in breach.

 

All other points and clauses remain as
per the original agreement.

 

 

Execution

 

Executed as an agreement on 15 February 2021

 

	 	Signed for and on behalf
    of	 
	 	Orient Victoria Pte. Ltd.:	 
	 	 	 
	 	/s/ Isaias
    Jose Calisto	 
	 	Director	 
	 	Isaias Jose Calisto	 

 

	 	Signed for
    and on behalf of	 
	 	Karooooo Pte Ltd	 

 

	 	/s/
    Isaias Jose Calisto	 
	 	Director	 
	 	Isaias Jose Calisto

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