Exhibit 10.4

 

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

 

This First Amendment to Employment Agreement is made and entered into as of
August 2, 2004, by and between PriceSmart, Inc., a Delaware Corporation
(“Employer”) and Jose Luis Laparte (“Executive”).

 

Recitals

 

A) On June 3, 2004 an Employment Agreement was made and entered into by and
between Employer and Executive.

 

B) Employer and Executive now desire to amend the Employment Agreement, as set
forth hereinbelow:

 

Agreement

 

1. Section 2.2 of the Agreement which provides:

 

2.2 Bonus. Executive shall be entitled to receive a bonus in the amount of
$100,000 if, but only if, Employer’s actual results for Employer’s Fiscal Year
ending August 31, 2005 (“FY’05”) equal or exceed the planned results for FY’05
as reflected in Employer’s Annual Plan for FY’05 (to be established by the
Employer’s Board of Directors in or about July, 2004). In the event Employer’s
actual results for FY ‘05 do not equal or exceed said planned results for FY ‘05
then Executive’s bonus (if any) shall be determined in accordance with the
following schedule:

 

Actual Results

--------------------------------------------------------------------------------

   Bonus

--------------------------------------------------------------------------------

97% to 99.99% of Planned Results

   $ 75,000

95% to 96.99% of Planned Results

   $ 50,000

90% to 94.99% of Planned Results

   $ 25,000

Less than 90% of Planned Results

     No Bonus

 

The term “results” as used herein refers to Operating Income, but excluding the
effect on Operating Income due to earnings or losses relating to real estate
owned or leased by Employer upon which PriceSmart warehouse clubs (and adjacent
facilities) formerly operated.

 

is hereby amended, effective August 2, 2004, to provide as follows:

 

2.2 Bonus. Executive shall be entitled to receive a bonus in the amount of
$100,000 if, but only if, Employer’s actual results for Employer’s Fiscal Year
ending August 31, 2005 (“FY’05”) equal or exceed the planned results for FY’05
as reflected in Employer’s Annual Plan for FY’05 (to be established by the
Employer’s Board of Directors in or about July, 2004). In the event Employer’s
actual results for FY’05 do not equal or exceed said planned results for FY’05
then Executive’s bonus (if any) shall be determined in accordance with the
following schedule:

 

Actual Results

--------------------------------------------------------------------------------

   Bonus

--------------------------------------------------------------------------------

97% to 99.99% of Planned Results

   $ 75,000

95% to 96.99% of Planned Results

   $ 50,000

90% to 94.99% of Planned Results

   $ 25,000

Less than 90% of Planned Results

     No Bonus

--------------------------------------------------------------------------------

The term “results” as used herein refers to Operating Income, but excluding the
effect on Operating Income due to earnings or losses relating to: (i) real
estate owned or leased by Employer upon which PriceSmart warehouse clubs (and
adjacent facilities) formerly operated; and (ii) severance and compensation
expense attributable to the termination of Employer’s employees, where such
termination was effected on or before August 31, 2004.

 

2. All other terms of the Employment Agreement shall remain unaltered and fully
effective.

 

Executed in San Diego, California, as of the date first written above.

 

EXECUTIVE

     

EMPLOYER

   

PRICESMART, INC.

Jose Luis Laparte

 

By:

 

/s/ Robert M. Gans

--------------------------------------------------------------------------------

/s/ Jose Luis Laparte

--------------------------------------------------------------------------------

 

Name:

 

Robert M. Gans

    Its:   Executive Vice President