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REPUBLIC OF PANAMA
Official Notarial Paper
NOTARY OF THE ELEVENTH CIRCUIT OF PANAMA

PUBLIC DEED
NUMBER--------------------------------------------------------(________)----------------------------
MY MEANS OF WHICH the corporation PRICESMART PANAMA, S.A. and the bank entity
METROBANK, S.A. enter into a Commercial Mortgage Loan Agreement, guaranteed with
a FIRST MORTGAGE AND ANTICHRESIS on Property No.
285351.-------------------------------------------------------
PANAMA. _____________ ___,
2010.--------------------------------------------------------------------------------
In the city of Panama, capital of the Republic  and head of the Notarial circuit
bearing the same name, on ___________ ___ ,, two thousand and ten (2010), before
me, KRISTY MARÍA PONCE AIZPURÚA, Eleventh Public Notary of the Circuit of
Panama, bearer of Identity Card number four-two hundred-twenty-three, one
hundred and forty-six (4-223-146), personally appeared: Mr. ERNESTO ANTONIO BOYD
SASSO, male, of legal age, Panamanian, married, banker, with Identity number
eight-one hundred and forty-seven-ninety-three (8-147-93), neighbor of this
city, acting on behalf and in representation of the bank entity METROBANK, S.A.,
a corporation duly registered under Index Card two hundred and forty-seven
thousand, one hundred and ninety-three (247193), role thirty-two thousand three
hundred and thirty (32330) and Image seventy-two (72), of the Trade Section of
the Public Registry, in his capacity as General Proxy, duly authorized to carry
out this act as stated in the General Power of Attorney registered under Index
Card two hundred and forty-seven thousand, one hundred and ninety-three
(247193), Redi Document one million sixty-five thousand six hundred and
fifty-seven (1065657),  of the Public Registry Trade Section, from here on in
referred to as THE BANK, on the one hand, and, on the other, PABLO EDUARDO
FRANCESCHI GUIZADO, male, Panamanian, of legal age, single, business executive,
neighbor of this city, bearer of Identity Card number eight-four hundred and
twenty-three-eight hundred and thirty-seven (8-423-837),  acting on behalf and
in representation of PRICESMART PANAMA, S.A., a corporation organized and
established in accordance with the laws of the Republic of Panama, as stated and
duly registered under Index Card three hundred and eight thousand and
seventy-one (308071), role forty-seven thousand six hundred and seventy (47670),
image sixty (60), of the Public Registry Trade Section, duly authorized to
celebrate this act as stated in the Minutes of the Extraordinary Meeting of
Shareholders that is  registered further on  in this deed, who from here on in
shall be referred to as THE DEBTOR, a individuals of my previous acquaintance
and who have requested that I state that
following:--------------------------------------------
 
I.
LOAN AGREEMENT

FIRST: (LOAN AMOUNT AND OBJECT): THE DEBTOR hereby states to have received from
THE BANK, as a Commercial Mortgage Loan, the amount of up to FIVE MILLION US
DOLLARS (US$5,000,000.00) in legal currency of the United States of America,
amount that it is bound to use to finance the new Membership Shopping facilities
locate at Brisas del Golf, Province of Panamá, from here on in referred to as
the LOAN.--------------------------------------------------------
SECOND: (TERM AND PAYMENTS: THE DEBTOR is bound to pay THE BANK, or to make
payment out to such bank, the amount of FIVE MILLION US DOLLARS AND 00/100
(US$5,000,000.00) in legal currency of the United States of America, plus
interests and the State fee destined for the Special Interest Compensation Fund
(F.E.C.I. for its initials in Spanish), within a maximum term of FIVE (5) YEARS,
starting as of the date on which this loan is paid out, in fifty-nine (59)
monthly equal and consecutive payments to capital, of no less than FORTY-ONE
THOUSAND SIX HUNDRED AND SIXTY SIX DOLLARS AND SIXTY-SEVEN CENTS (US$41,666.67),
in legal currency of the United States of America, plus one (1) final payment
for the remaining balance, which shall be debited from the checking account held
by the DEBTOR with THE BANK for such purposes.—The before established payments
shall be paid upon the expiration of each month, and the first payment must be
made on the twenty-fifth (25) day following the date on which the loan was paid
out and so on, successively, in a monthly manner, on the twenty-fifth (25) day
of each month, until the owed sum is completely paid up. Once the five (5) year
term, or the extension of such –as further on agreed—has expired, THE DEBTOR, in
a single payment, except if the BANK has agreed to grant the agreed on
extension, shall pay any balance remaining against THE DEBTOR in the books of
THE BANK.------------------------------------
------------------------------------------------------------
THIRD (EXTENSION): It is hereby agreed that if, upon the expiration of the
original term agreed on, THE BANK has not claimed the payment of the owned
balance, in writing, to the DEBTOR at that time, it shall be understood that
such shall be automatically extended for an (1) additional period of five (5)
years and, consequently THE DEBTOR shall, without any interruption,  continue
making the monthly payments in accordance with the payment plans agreed on in
the SECOND AND FORTH Clauses of this
Agreement.-------------------------------------
It is hereby understood that, in the event that THE BANK grants the herein
stated extensions, the remaining terms, conditions and guarantees contained in
this Agreement shall be understood to be automatically extended and shall remain
in effect throughout the duration of such, as long as an owned balance exists in
favor of THE BANK, without the need to modify this public deed in order to
certify such
extension.-----------------------------------------------------------
FOURTH (INTEREST RATES): THE DEBTOR is hereby bound to pay THE BANK, or to make
payments in the name of such, the following interest rates on the owed
amount:------------------
a)  
A fixed yearly interest rate of five percent (5%) plus the amounts destined to
the Special Interest Compensation Fund (F.E.C.I.) during the first (1st) year
during which this loan is in effect;
and----------------------------------------------------------------------------------------------------------

b)  
A yearly fixed interest rate of five point five percent (5.5%), plus the sums
destined to the Special Interest Compensation Fund (F.E.C.I.) during the second
(2nd) and third (3rd) years during which this loan is in
effect.---------------------------------------------------------------------------

Payment of interests plus the State fee destined to the Special Interest
Compensation Fund (F.E.C.I.) shall be made on the twenty-fifth (25) day of each
month, and the first payment must be made on the twenty-fifth (25) day after the
date on which this loan is paid out and so on, successively, each month, on the
twenty-fifth (25) of each month, until the complete owed amount has been paid
up, and such payments shall be debited each month, in accordance with this
Agreement, from the checking account held by THE DEBTOR with THE BANK, for such
purposes.----------------------------------------------------------------------------------------------------------------------
This rate shall ve periodically reviewed, and THE DEBTOR, as of that term, is
bound to pay interests plus the State rate destined to the Special Interest
Compensation Fund (F.E.C.I.) to THE BANK, each month, at the rate that THE BANK
establishes upon performing its periodic reviews. Interests shall be calculated
based on one (1) three hundred and sixty (360) day year, multiplied by the
precise number of calendar days that have elapsed. ---In case of doubt, the
banking practices of THE BANK shall prevail.----- It is hereby agreed that the
interests shall be capitalized if they are not punctually paid and shall earn
the same interests set for the payment of
capital.---------------------------------------
In the case of delinquency in paying the due and unpaid payments on the
respective payment dates, THE DEBTOR is bound to pay the BANK a surcharge of an
additional three percent (3%) a
year----------------------------------------------------------------------------------------------------------------------------
Once the loan capital is paid up, THE DEBTOR is bound to pay THE BANK a
surcharge of eighteen percent (18%) a year, on the balance reflected by the loan
on the date that such expires.-------------
Exclusively for the effects of that provided by Executive Decree number
fifty-two (52) dated April thirtieth (30), two thousand and eight (2008), which
adepts the Sole Text pertaining to Law number nine (9), dated February
twenty-sixth (26), nineteen hundred and ninety-eight (1998), modified by Law
number two (2), dated February twenty-second (22), two thousand and eight
(2008), the parties hereby state that for the effects of each of the uses made
by THE DEBTOR of the credit facility, the respective calculations shall be
performed, and it is thereby understood that this effective rate shall vary in
the event that any of the elements used to calculate such rate, should
vary.-------------------------------------------------------------------------------------------------------------------
c) As of the fourth (4th) year and during the fifth (5th) year that this loan is
in effect, THE DEBTOR shall be bound to pay interests on the owed balances based
on an annual rate that is produced upon adding two point five percent (2.5%) to
the “Prime Rate” (as this is defined further on), plus the annual rate destined
to the Special Interest Compensation Fund (F.E.C.I.). THE BANK may at any time
and at its own discretion, adjust the differential of the interests to be
collected on the “Prime Rate”.--------------- “Prime Rate” shall be understood
as the interest rate charged by the front line banks in New York, U.S.A., to
their best clients, which is adjusted and published periodically by such banks.
THE BANK shall determine the interest rate applicable to this loan, as
previously stated, with the regularity and frequency required, in the opinion of
THE BANK, so as to ensure that such interest rate adequately covers the cost so
that THE BANK may continue to make this credit facility available to THE
DEBTOR..------------------------------------------------------------------------
The interest payments plus the State rate destined to the Special Interest
Compensation Fund (F.E.C.I.), shall be made on the twenty-fifth (25) of each
month, and the first payment must be made on the twenty-fifth (25) day following
the date on which this loan is paid out and so on, successively, each month, on
the twenty-fifth (25) of each month until the full owed sum is paid up, and such
payments shall be debited each month, in accordance with this Agreement, from
the checking account held by THE DEBTOR with THE BANK for such purposes. The
parties hereby agree that in the event of an occasional overdraft in such
checking account, due to the monthly debits referred to in this clause, THE
DEBTOR is bound to cover such occasional overdraft within a maximum term of
fifteen (15) calendar days. It is likewise also agreed that THE BANK may vary
the differential or percentage of interests charged on the above mentioned
“Prime Rate”, as many times at it considers it convenient, whether by increasing
or decreasing such rate. In the event that the referred to differential is
increased or decreased, as before stated, THE BANK shall inform THE DEBTOR of
the new differential and if THE DEBTOR, within a period of ten (10) calendar
days following the date on which such communication is made, does not provide
written notice of its unconformity, the increased or decreased rate or
differential shall be considered to be accepted and effective as of the date on
which such is informed of by THE BANK. If, on the contrary, THE DEBTOR does
state its unconformity, then the term of the complete debt shall be considered
to have expired and THE DEBTOR shall be bound to pay the loan within a term of
thirty (30) calendar days following its of statement  of
unconformity.------------------------------------------------------------------
It is likewise agreed that in the event of circumstances affecting the financial
markets of Panama or New York, THE BANK may not obtain quotes for the Prime
Rate, or if it is economically damaging or impossible for THE BANK, at its full
discretion, to continue to use such quote to establish the interest rate to be
paid by THE DEBTOR in the amounts owed to THE BANK, as agreed on in this deed,
then THE BANK shall notify THE DEBTOR of such circumstance and THE DEBTOR and
THE BANK, as of the date on which such notice is sent and during a fifteen (15)
day period, shall, in good faith, negotiate with the object of finding an
alternative source that is mutually acceptable, as a basis for the establishment
of the interest rate applicable to this loan. If THE DEBTOR and THE BANK reach
an agreement regarding the use of an alternate source as a basis to establish
the interest rate applicable to this loan, such rate shall be applied once the
before mentioned fifteen (15) day period, has come to an end. If , on the
contrary, the parties are unable to reach an agreement regarding the referred to
alternate source, then THE BANK shall set the new interest rate applicable to
the loan, which shall become effective when the referred to fifteen (15) day
period comes to an
end.---------------------------------------------------------------------------------------
Interests shall be calculated based on one (1) three hundred and sixty (360) day
year, multiplied by the precise number of calendar days that have elapsed. In
case of doubt, the use of the banking practices employed by THE BANK shall
prevail.  Notwithstanding the before stated, the parties hereby agree that THE
BANK may, when it considers it convenient, may vary the method indicated herein
for the calculation of interests. THE DEBTOR accepts the payment of interests in
the indicated manner and any variation of such, based on that stipulated in this
clause. It is hereby agreed that interests shall be capitalized if they are not
paid on time and shall earn the same interests set for capital. In the event of
delinquency in paying the due and unpaid payments on the respective payment
dates, THE DEBTOR is bound to pay a surcharge of an additional three percent
(3%) a year to THE BANK. Once the loan expires, THE DEBTOR is bound to pay a
surcharge of eighteen percent (18%) a year to THE BANK, on the balance reflected
by the loan on the expiration date of such. Exclusively for the effects of that
provided by Executive Decree number fifty-two (52), dated April thirtieth (30),
two thousand and eight (2008), adopted by the Sole Text of Lay number nine (9)
dated February twenty-six (26), nine teen hundred and ninety-eight (1998),
modified by Law number two (2) dated February twenty-two (22), two thousand and
eight (2008), the parties hereby state that for the effects of each of the uses
of the credit facility made by THE DEBTOR, the respective calculations shall be
performed, whereby it is understood that the effective rate shall vary in the
event that any of the elements used to calculate such should vary.—
FIFTH (COMMISSION): THE DEBTOR as of this moment undertakes the obligation to
pay THE BANK, one time only, a bank commission which sum shall be equal to zero
point three hundred and seventy-five percent (0.375%) pm the amount of the loan,
when the loan is paid out, plus the corresponding legal
expenses.-------------------------------------------------------------------------------------------
SIXTH (EXTRAORDINARY PAYMENTS): It is hereby expressly agreed that THE DEBTOR
may make extraordinary payments to the debt it has with THE BANK, towards the
loan referred to in this deed, and may likewise fully pay such debt at any time
it so wishes, within the established time period without any penalization
whatsoever.-----------------------------------------------------------------------
SEVENTH (COMPENSATION): the parties agree that THE BANK is irrevocably
authorized at any time, whether before or after the expiration of the agreement
and with no need to provide prior notice to THE DEBTOR, to deduct, charge or
compensate any amount in deposit or credited in favor of THE DEBTOR or that THE
DEBTOR should, under any other concept, receive at any of the branches of THE
BANK, the sums required for payment, whether partial or in full, of the agreed
on obligations, including capital, interests, F.E.C.I., costs, judicial or
extrajudicial collection expenses, and surcharges on delinquent
payments.-----------------------------------------------------------------------------
II.           FIRST MORTGAGE AND ANTICHRESIS
EIGHTH (ESTABLISHMENT OF LIENS): THE DEBTOR states that in order to ensure the
payment of the owed amount, the amount of FIVE MILLION US DOLLARS
(US$5,000,000.00), in legal currency of the United States of America, referred
to in this public deed; plus the interests, F.E.C.I., commissions, costs,
judicial or extrajudicial collection expenses, insurance premiums, taxes and
insurance premiums paid by THE BANK in the name of THE DEBTOR, administration or
management expenses pertaining to the LOAN or of any other nature, as well as to
ensure the fulfillment of each and every one of the obligations undertaken by
THE DEBTOR at this time or in the future, THE DEBTOR ESTABLISHES A First
Mortgage and Antichresis, in favor of THE BANK for the amount of up to FIVE
MILLION US DOLLARS AND 11/100 (US$5,000,000.00), in legal currency of the United
States of America, on Property number two hundred and eighty-five thousand three
hundred and fifty-one (285351), registered in document one million four hundred
and one thousand three hundred and sixty-three (1401363) of the Property Section
pertaining to the Province of Panama, of the Public Registry, which measures,
boundaries and other registration details are stated in the Public Registry
(from here on in referred to as “THE MORTGAGED
PROPERTY”).------------------------------------------------------------------------------------------------------------------
It is hereby understood that in the event that the FIRST MORTGAGE AND
ANTICHRESIS on THE MORTGAGED PROPERTY is unable to be registered, this agreement
shall be automatically resolved and must not be registered and, therefore, THE
BANK shall be under no obligation with the DEBTOR; however, the latter must
immediately pay any amounts of money that have been advanced, by virtue of the
LOAN agreement contained in this public deed, by THE BANK whether for the
concept of capital, interests, FECI, costs, expenses or any other
concept.-------------------------
NINTH (SCOPE): All existing improvements on THE MORTGAGED PROPERTY  and al those
made during the term of this agreement, including natural accessions, pending
fruits, rents, the amount of indemnifications granted or owed to THE DEBTOR by
the Insurer of THE MORTGAGED PROPERTY, or by virtue of expropriation by the
State, and all the other objects established by law, including movable property
permanently placed by THE DEBTOR on such property, are hereby encumbered with
this FIRST MORTGAGE AND ANTICHRESIS. No error or difference in measures, surface
areas, boundaries or description of the property may in any event affect that
rights corresponding to THE
BANK.---------------------------------------------------------------------------------------------
TENTH (EXERCISING THE ANTICHRESIS): The rents resulting from THE MORTGAGED
PROPERTY are also encumbered in favor of THE BANK by virtue of the agreed on
antichresis. By virtue of the Antichresis hereby acknowledged, THE BANK, when it
considers it convenient, may exercise its rights as the antichresis creditor,
taking over the administration THE MORTGAGED PROPERTY, upon notice to THE
DEBTOR, and without having to establish the mortgage enforcement action, but
without prejudice to the subsequent exercise of such action. Once the
enforcement action is established, THE BANK may also exercise its antichresis
creditor rights in this event taking possession of THE MORTGAGED PROPERTY, while
the judicial sale is being verified and without requiring any judicial
authorization whatsoever. For these effects, the parties, in other words THE
BANK and THE DEBTOR, agree that, in accordance with that provided in Article one
thousand six hundred and twenty-three (1623) of the Civil Code, in the event
that THE BANK is required to exercise its rights as the antichresis creditor, it
shall not be bound to personally respond for the expenses caused by the
administration, maintenance and conservation of THE MORTGAGED PROPERTY, nor the
insurance premiums against any type of risks or taxes or rates charged on THE
MORTGAGED PROPERTY. It is likewise agreed by THE BANK and THE DEBTOR that in
this assumption, the expenses referring to THE MORTGAGED PROPERTY and produced
in exercising the right of antichresis, shall be covered by the rents or fruits
produced by THE MORTGAGED PROPERTY, firstly, and the surplus shall be applied to
the payment of interests, FECI and payments to capital, in this order, according
to the obligations undertaken in this public deed. If the fruits or rents
produced by THE MORTGAGED PROPERTY are insufficient in order to cover the
expenses and obligation undertaken by THE DEBTOR, THE BANK may judicially
proceed to require the payment of its loan. This power is understood without
prejudice to those possessed by THE BANK by virtue of the assumptions
contemplated in the clause corresponding to the early expiration of the
obligations. THE BANK, by virtue of the antichresis, is not bound to pea the
contributions, charges, rates or taxes on the MORTGAGED PROPERTY in the present
or in the future, nor to incur in the necessary expenses for the conservation
and repairs, should such exist, of the MORTGAGED PROPERTY, in which event THE
DEBTOR agrees that such payments shall be charged to the debt agreed on in this
public deed, and the interests agreed on in the Agreement convened in this same
deed shall be capitalized and earned. Likewise, fully separate from the exercise
of the antichresis, in the event of a judicial enforcement or the takeover
judicially ordered in favor of THE BANK as the mortgage creditor, the parties
agree that if any of such payments are made by THE BANK, in the case of
delinquency in charges, rates or taxes on the MORTGAGED PROPERTY, such payments
shall be added to the owed balance of this LOAN  Agreement and THE DEBTOR
expressly accepts that such amounts shall be capitalized and the interests
agreed on in this LOAN Agreement, accorded in this same deed, shall be earned,
at the option of THE BANK. THE BANK may exercise such rights through any
physical person or legal entity, or place THE DEBTOR in charge of the
administration and the latter as of this moment is compelled to punctually
render accounts to the satisfaction of THE BANK. It is hereby agreed that
whenever THE BANK exercises the right to the antichresis and other rights
referred to in this clause, THE BANK or the person designated by such to
administrate the MORTGAGED PROPERTY, shall exercise all the rights deriving in
favor of THE DEBTOR as the owner of THE MORTGAGED PROPERTY, without any need to
render account for such administration after THE DEBTOR hereby expressly
relieves such person of THE BANK from said obligation. For the effects of the
valuation of THE MORTGAGED PROPERTY, when THE BANK requests the administration,
the fair value of such property shall be held as that established by THE BANK
for such
purpose.---------------------------------------------------------------------------------------------
ELEVENTH (TAXES AND RATES): THE DEBTOR is bound to punctually pay the State and
its autonomous agencies, the taxes, tributes, rates, awards or contributions
resting on THE MORTGAGED PROPERTY, and in this event, the amount or amounts
invested in such by THE BANK shall be charged to THE DEBTOR and the interests
set out in the LOAN Agreement contained in this public deed shall be earned, at
the option of THE BANK and the payment of such shall be guaranteed with the
First Mortgage and Antichresis agreed on; such amounts shall be reimbursed to
THE BANK by THE DEBTOR upon the request of the
former.-------------------------------------------------
TWELFTH (MAINTENANCE AND INSPECTION): THE DEBTOR is bound to maintain THE
MORTGAGED PROPERTY in good conditions in order to prevent the decrease of its
value and to incur in the necessary expenses for the conservation of such and
THE BANK hereby has the right and is expressly authorized to inspect the
property whenever it considers it convenient, to establish the condition of such
and if the obligations undertaken by THE DEBTOR, in this agreement, are
sufficiently guaranteed.  If THE MORTGAGED PROPERTY is depreciated, deteriorated
or damaged to such an extent that, in the opinion of THE BANK this loan is not
satisfactorily covered, THE BANK, in addition to directly exercising the
administration of such, as stipulated herein, may proceed through summary
proceedings for collection, to cash in the loan, except in the event that THE
DEBTOR offers another guarantee that satisfies THE
BANK.-----------------------------------------------
THIRTEENTH (APPRAISALS): The parties agree that THE BANK reserves the right, at
the expense of THE DEBTOR, to carry out or request the appraisals of THE
MORTGAGED PROPERTY that it considers necessary. Such valuations must be
performed by independent appraisers designated or accepted by THE BANK. In the
event that THE DEBTOR does not obtain an appraisal in a timely manner, at the
request of THE BANK, the latter may, if available to it, incur in the expense
for THE DEBTOR and, in such event, the amount or amounts invested in this by THE
BANK shall be debited from THE DEBTOR and, shall earn an interest in accordance
with the rate that is effective for the LOAN contained in this public deed, at
the option of THE BANK and the payment shall be guaranteed with the First
Mortgage and Antichresis established in this public deed.---------------------
FOURTEENTH (IMPROVEMENTS): THE DEBTOR is bound to state the improvements built
on THE MORTGAGED PROPERTY in a maximum term of ninety (90) days following the
date on which the respective occupation permit is issued or the finished
improvements are received.----------------------
FIFTEENTH (OWNERSHIP RIGHT LIMITATION): THE DEBTOR is bound not to sell,
exchange, lease, mortgage or in any other way transfer or encumber the property
given as a guarantee, whether fully or partially, without the previous consent
of THE BANK, granted in the same Deed in which the operation in question is
dealt with. These prohibitions, by the agreement of the contracting parties,
constitute a limitation to the ownership right of THE MORTGAGED PROPERTY;
consequently, the parties request the Public Registrar the corresponding special
marginal annotation, since THE DEBTOR may only sell, exchange, lease, mortgage
or in any other way transfer or encumber THE MORTGAGED PROPERTY with the express
consent of THE BANK.-----------
SIXTEENTH (INSURANCE ON IMPROVEMENTS): THE DEBTOR, while this Agreement is in
effect and while a balance exists against THE DEBTOR, in favor of THE BANK by
reason of this Agreement is bound to maintain THE MORTGAGED PROPERTY insured
against fire, lightening, earthquakes and fire caused by lightening or
earthquakes and to endorse the respective fire insurance policy and
comprehensive insurance on THE MORTGAGED PROPERTY in favor of THE BANK for a
minimum amount  of eighty percent (80%) of the value of the improvements built
on THE MORTGAGED PROPERTY in the future. THE DEBTOR is likewise bound to assign
or endorse the respective insurance policies in favor of THE BANK, so that THE
TANK appears as the sole beneficiary of such policies and to renew them in a
timely manner. In case THE DEBTOR does not take out the insurance in a timely
manner or no longer renews such on time, THE BANK, at its discretion, may incur
in this expense  on the account of THE DEBTOR and in this case the amount or
amounts invested in this by THE BANK shall be owed by THE DEBTOR and shall earn
an interest equal to that indicated for the amount provided in the loan
contained in this deed or the interest in effect at that time and payment shall
be guaranteed with the First Mortgage and Antichresis agreed on. In the case of
loss, THE BANK shall have the right to receive the insured value to attend to
the payment of the amount owed to it by THE DEBTOR on that date, expressly
establishing that if the product of such insurance is insufficient for such
purpose THE DEBTOR must pay the balance resulting against it. In the event of a
surplus, such shall be delivered to THE DEBTOR. The parties agree that even when
THE DEBTOR chooses the individual fire insurance it may, subsequently chose the
fire insurance that THE BANK  negotiates in the future with the insurance
company that is acceptable to THE BANK, as long as it notifies this to THE BANK
and pays THE BANK the respective amounts and in this case, THE DEBTOR agrees
that such insurance shall be directly negotiated by THE BANK. THE DEBTOR accepts
the conditions set out in the fire insurance policy that THE BANK takes out with
the insurance company acceptable to THE BANK. It is expressly agreed, and
accepted by the DEBTOR, that in the event of delays in the payment of the
individual insurance premiums or in the event that such is not renewed in a
timely manner, THE BANK, at its own discretion, may automatically include such
in the insurance that THE BANK has taken out with the insurance company that is
acceptable to THE BANK in which case, THE DEBTOR accepts the conditions set
forth in the negotiated insurance policy. It is hereby understood that THE
DEBTOR shall not be effectively insured until it has delivered the policy to THE
BANK, duly assigned or endorsed in favor of THE BANK, in the case of the
individual insurance and until THE BANK delivers a certificate issued by the
insurance company, to THE DEBTOR, as proof that as of that moment it is favored
with the fire insurance policy negotiated by THE BANK, in case THE DEBTOR
chooses the fire insurance negotiated by THE BANK, referred to in this clause.
THE DEBTOR transfers the right on any indemnification to THE BANK, in the event
of a loss.----------------------------------------------------
 
III.
COMMON CLAUSES

SEVENTEENTH (REPRESENTATIONS AND GUARANTEES): THE DEBTOR represents and
guarantees the following to THE
BANK:-----------------------------------------------------------------------------------------------
(a)  
THE DEBTOR is a corporation established and organized in accordance with the
laws of the Republic of
Panama.--------------------------------------------------------------------------------------------

(b)  
THE DEBTOR has obtained all the necessary authorizations to do
business.---------------------

(c)  
THE DEBTOR’S compliance with and celebration of this Agreement has been duly
authorized by all the necessary corporate shares of THE DEBTOR and such do not
contravene or constitute an event of noncompliance under (i) the Articles of
Incorporation of THE DEBTOR; (ii) any law, decree or regulation, or (iii) any
significant agreement to which THE DEBTOR is a
party.---------------------------------------------------------------------------------

(d)  
No consent, approval, license, authorization or validation whatsoever, is
required from any court, administrative agency, commission or other government
or public entity of the Republic of Panama (or any of its political divisions),
with regard to the execution and compliance of this Agreement by THE
DEBTOR.----------------------------------------------------------

(e)  
No judicial or administrative process whatsoever , in the Republic of Panama or
abroad, of which THE DEBTOR is a party exists which may have a substantial
adverse effect on the businesses or the financial situation or in the operations
of THE DEBTOR or that may affect the effectiveness or enforceability of this
Agreement.-------------------------------------------------

(f)  
There has been no substantial adverse effect in the businesses, in the financial
situation or in the operations of THE
DEBTOR.---------------------------------------------------------------------------

(g)  
All information provided by THE DEBTOR to THE BANK with regard to this
Agreement, including the financial statements of THE DEBTOR is correct and
true.---------------------------

(h)  
THE DEBTOR has not incurred in any substantial noncompliance of the laws,
decrees, regulations or resolutions of the Republic of
Panama.------------------------------------------------

(i)  
The obligations of THE DEBTOR, by virtue of this Agreement, are legal, valid and
required, in accordance with their respective terms and
conditions.------------------------------------------

EIGHTEENTH (OBLIGATIONS ON WHAT TO DO): While the agreed on obligations are in
effect, THE DEBTOR is required to do the
following:-------------------------------------------------
a)        
THE DEBTOR is required to submit an annual report to THE BANK, when the latter
so requires, on the financial situation and on the status of each of the
businesses of which it is an owner or joint owner, as long as THE DEBTOR owes
any amount to THE BANK by virtue of the agreed on obligations. These reports
must be submitted within one hundred and twenty (120) calendar days following
the end of the fiscal year of THE DEBTOR and must be duly audited by an
accounting firm that is acceptable to THE BANK. Additionally, while owing any
amount to THE BANK by virtue of the agreed on obligations, THE DEBTOR is bound
to submit its bi-annual internally prepared financial statements to THE BANK,
sixty (60) days after the end of the semester, at the latest.—

b)        
To deliver any financial information requested by THE
BANK;----------------------------------

c)        
To pay all taxes, rates, contributions, tributes of any nature that are
generated, whether national municipal, pertaining to autonomous or semi
autonomous institutions on time, including the contributions and fees
corresponding to the Social Security
Institute;-------------------------------------------------------------------------------------------

d)        
To continue to be in effect as a corporation and maintain its line of
business;-------------

e)        
To keep all its third party obligations up to
date;--------------------------------------------------

f)        
To present an appraisal of THE MORTGAGED PROPERTY, by an appraisal company
acceptable to THE BANK, stating that the MORTGAGED PROPERTY has a market value
of at least one hundred and twenty-five percent (125%) of the loan
amount.-------------

NINETEENTH (OBLIGATIONS ON WHAT NOT TO DO): Except if previously authorized by
THE BANK, in writing, and until THE DEBTOR has fully and faithfully fulfilled
all of the obligations hereby undertaken, THE DEBTOR is bound not to perform and
of the following transactions or carry out any of the following
acts:------------------------------------------------------------------------------------------------
(a)  
To dissolve or be
liquidated.---------------------------------------------------------------------------------

(b)  
To merge or consolidate in such way that THE DEBTOR is not the surviving
entity;-----------

(c)  
To substantially alter their businesses or the method it currently uses to do
business.--------

(d)  
To use the product of these facilities for matters other than for the objects
stated in this
Agreement.--------------------------------------------------------------------------------------------------------

TWENTIETH (CAUSES FOR EARLY EXPIRATION): THE DEBTOR  also agrees that THE BANK
may consider the term of the agreed on LOAN to have expired and take judicial
action, in any of the following
cases:------------------------------------------------------------------------------------------------------------
ONE (1): If THE DEBTOR DOES NOT MAKE ANY OF THE INTEREST PAYMENTS SET FORTH IN
THIS Agreement, or if THE DEBTOR does not make any of the payments to capital
that it must make in accordance with that agreed on in this LOAN agreement; or
if THE DEBTOR does not comply with any of the payments that THE DEBTOR must
make, in any event, in accordance with that agreed on in this
Agreement;----------------------------------------------------------------------------------------------------------
TWO (2): If THE DEBTOR does not provide a statement to THE BANK, any time that
it is required to do so by the latter, that it is under no indebtedness with any
other tax, rate or contribution, whether national or municipal, of an autonomous
or semi autonomous institution, relating to THE MORTGAGED PROPERTY, its
properties or any other taxes, rates or contributions falling upon its
properties in the
future;---------------------------------------------------------------------------------------------------
THREE (3): If THE DEBTOR is delinquent with regard to the contracted obligations
or those undertaken with the Social Security institute or any other autonomous
or semi autonomous institution. For such effects, THE BANK may also require THE
DEBTOR, at any time, to present the corresponding Clearance Certificate from the
Social Security Institute or the autonomous or semi autonomous institution in
question;-----------------------------------------------------------------------------------
FOUR (4): If THE MORTGAGED PROPERTY  is confiscated or embargoes or sought after
in any other way, or if THE DEBTOR should be seized or embargoed in its
businesses or any other property, whether real or personal, or of any other
nature;-----------------------------------------------------------------
FIVE (5): In the event that THE DEBTOR is sued or  declares bankruptcy or a
meeting of creditors, at its request or that of third parties or the corporation
is dissolved;--------------------------------------------
SIX (6): If THE DEBTOR has not fulfilled any of the obligations undertaken with
THE BANK;------------
SEVEN (7): If THE DEBTOR does not comply with any agreement regarding the
guarantee, mortgage, bond, pledge or any other real or personal
guarantee;---------------------------------------------
EIGHT (8): If THE DEBTOR does not comply with any judicial sentence that is not
subject to appeal;-
NINE (9): If THE DEBTOR does not comply with or is delinquent or before the
expiration of the term corresponding to any other obligation, whether present or
future, for any other creditor and such noncompliance is not remedied within a
term of thirty (30) calendar days;--------------------------TEN (10): If THE
DEBTOR does not fulfill any other obligation with any other creditor, resulting
in the acceleration of the early expiration of the loan. In this event, THE BANK
shall have the right to accelerate the payment of the granted credit facility,
including in the event that any other creditor has that right or any other
creditor with such right decides not to exercise
it;-----------------------------
ELEVEN (11): If THE DEBTOR changes its shareholding structure without the prior
consent of THE
BANK;--------------------------------------------------------------------------------------------------------------------------
TWELVE (12): If any substantial adverse change come about in the businesses, the
financial situation or the operations of THE DEBTOR, or upon the occurrence of
any circumstance of a financial, political or economic nature, whether national
or international, that gives THE BANK reasonable grounds to conclude that THE
DEBTOR will not be able or is incapable of, fulfilling or observing the normal
course of its obligations under this
Agreement.--------------------------------------
THIRTEEN (13): If THE DEBTOR is delinquent or upon the expiration of the term
with regard to any obligation, whether present or future, owed to THE
BANK.-----------------------------------------------------
TWENTY-FIRST (CREDIT INFORMATION):   THE DEBTOR authorized THE BANK to that, at
its complete discretion, it may reveal to the Panamanian Credit Association or
any other credit information center to which THE BANK is affiliated, the history
regarding THE DEBTOR’s fulfillment of the obligations  with regard to this and
to any other obligation agreed on by THE DEBTOR with THE BANK, and THE DEBTOR
expressly holds THE BANK harmless of any consequence resulting from THE BANK’s
exercising its right to provide the information referred to in this
clause.-------------
TWENTY-SECOND (ASCRIPTION OF PAYMENT): THE DEBTOR hereby authorizes THE BANK to
receive any payment relating to the obligations hereby undertaken in favor of
THE BANK, which may, at its entire discretion, freely ascribe the respective
payment towards the owed capital preferentially to the payment of the interests
due, as well as payment of the premiums corresponding to the insurance on THE
MORTGAGED PROPERTY, should this proceed in accordance with the agreed on
conditions;--------------------------------------------------------------------------
TWENTY-THIRD (ASSIGNMENT): The parties agree that THE BANK, at its full
discretion and when it considers it to be convenient, may sell, assign, convey,
transfer or dispose of, in any other way, either part of all of the loan and
other rights and obligations of THE BANK consigned in this document, without
requiring THE BANK to provide any type of prior or subsequent notice to THE
DEBTOR and needing to require or receive any approval from THE DEBTOR. Regarding
the expressed object, THE BANK is hereby previously authorized to provide any
document and information relating to the loan, to the financial situation of THE
DEBTOR and the status of the rights and obligations of such DEBTOR with THE BANK
and all information that THE BANK deems convenient, expressly exempting THE BANK
from any consequence resulting from the exercise of the right to provide the
documents and information, by THE BANK, referred to in this clause.-------
TWENTY-FOURTH (TRUE AND CORRECT BALANCE): For the effects of issuing enforcement
against THE DEBTOR, as well as for all the other effects involving the LOAN
contained in this deed, the contracting parties agree that the balance stated in
the books of THE BANK, according to the statement of such BANK, shall be
considered as the true and correct balance of the obligations guaranteed with
the mortgage and antichresis on the real property constituted herein, even when
such balance is higher than the limit stipulated herein. Consequently, in the
event of a judicial proceeding to collect the due balance produced by the
account after such is closed, THE BANK is not bound to prove that the due and
unpaid balance is that expressed in the claim. It is also expressly agreed that
for all effects, the copy submitted by THE BANK of the written notice(s) sent to
THE DEBTOR shall be considered as true and correct, also in the understanding
that the date stated on the copy of such letter is the date on which such notice
was effectively provided and received. Therefore, the parties expressly agree to
leave the indication of the liquid and required balance as an exclusive faculty
of THE BANK, and THE DEBTOR from this moment accepts the balance provided by THE
BANK and therefore the certificates issued by THE BANK regarding the amount and
payable nature of the LOAN balance that is owed, once reviewed by an Authorized
Public Accountant, in accordance with the first (1st) section of Law fifty-seven
(57) of the year nineteen hundred and seventy-eight (1978) and number fifteen
(15) of article one thousand six hundred and thirteen (1613) of the Judicial
Code, shall attest in a trial and shall provide executive merit, holding the
amount stated in such certification as clear, settled and payable.
-------------------
TWENTY-FIFTH (WAIVER OF JURISDICTION): THE DEBTOR waives the jurisdiction and
processes of the Mortgage Enforcement Proceedings and agrees that, in the event
of an auction, the sum for which the claim is submitted serve as a basis for the
sale of THE MORTGAGED PROPERTY, that is to say, without any consideration
whatsoever for the cadastral or commercial value of the real properties provided
in the first mortgage and antichresis, as contemplated in Article one thousand
seven hundred and forty-three (1743) of the Judicial Code; and as of this moment
exempt THE BANK from the obligation of submitting a cost bond regarding any
enforcement or proceeding referring to that
obligation.----------------------------------------------------------------------------------------------
TWENTY-SIXTH (ENVIRONMENT): THE DEBTOR states that, to this date, is in
compliance with the provisions consigned in Law number forty-one (41) dated July
one (1), nineteen hundred and ninety-eight (1998), based on which the General
Environment Law of the Republic of Panama and its regulations, are adopted, and
are hereby bound to comply with such provisions and those that may be issued in
the future. Therefore, THE DEBTOR acknowledges and accepts that THE BANK may
require THE DEBTOR, at any time and at its own cost, to provide the
documentation it considers convenient and necessary in order to certify the
fulfillment, by THE DEBTOR, of the regulations that are applicable in matters of
environmental protection.------------------------------------
TWENTY-SEVENTH (MODIFICATIONS):  The fact that THE BANK allows THE DEBTOR, on
one or more occasions, to not fulfill its obligations or to fulfill them
imperfectly or in a manner other than that agreed on, or that THE BANK does not
insist on the precise fulfillment of such obligations, or does not punctually
exercise its corresponding contractual or legal rights shall not be deemed as a
modification to the Agreement contained in this document, nor shall it prevent
THE BANK from requiring THE DEBTOR to fulfill its obligations or to exercise the
rights conferred by this Agreement.
------------------------------------------------------------------------------------------------------------------
TWENTY-EIGHTH (EFFECTS OF A STIPULATION OF NULLITY): It his hereby understood
and agreed between the contracting parties that if any of the stipulations of
the Agreement contained in this document should become null in accordance with
the laws of the Republic of Panama, such nullity shall not invalidate the
Agreement in its entirety but rather such shall be interpreted as if it did not
include the stipulation(s) declared null and the rights and obligations of the
contracting parties shall be deemed and observed according to
law.-------------------------------------------------------------------
TWENTY-NINTH (NOTICES AND NOTIFICATIONS(): All notices or notifications required
in accordance with this Agreement shall be provided in writing and personally
delivered or sent by mail (on the same date that such are dated) to the party to
whom such notice is addressed, to the following
addresses:--------------------------------------------------------------------------------------------------------
FOR THE BANK at its address of domicile: Punta Pacífica, Torre Metrobank, piso
cuarto (4), Ciudad de Panamá, República de Panamá. Apartado Postal cero ocho uno
seis-zero dos zero cuatro uno (0816-02041), Panamá,  República de Panamá. Phone:
five cero seven (507) two hundred and four-nine thousand (204-9000); Fax: five
hundred and seven (507); two hundred and four-nine thousand and one
(204-9001).-------------------------------------------------------------------------------------------FOR
THE DEBTOR at its address of domicile: PriceSmart de Vía Brasil, provincial de
Panamá, P.O.BOX  zero six three two-two four four three (0632-24431), World
Trade Center, Panamá, República de Panamá, Phone: two six five-two three one one
(265-2311 or two six five-seven six four five
(265-7645).-------------------------------------------------------------------------------------------------------
Attention: Amira Chong de
Navarro.-----------------------------------------------------------------------------------
It is hereby understood and agreed that all the notices or notifications
provided in writing must be sent by messenger to the physical addresses
described in this clause, and such shall be considered to have been provided at
the time that such notice is delivered. The acknowledgment of receipt signed by
the person receiving such notice or notification, shall constitute sufficient
proof of delivery of the notice or notification and its corresponding
date.---------------------------------------------
It is understood that the parties may change the above indicated address, by
notifying the party of such change by means of a private note sent to the
corresponding address.-------------------------------
THIRTIETH (PLACE AND CURRENCY FOR PAYMENT):  All payments for the concept of
capital, interests, FECI, premiums or any other concept to be made by THE DEBTOR
to THE BANK, in accordance with this document, shall be made in US dollars, at
the main offices of THE BANK in the city of Panama or at another branch or
office of THE BANK or at the place that THE BANK may, from time to time,
indicate to THE DEBTOR, free of any deduction or charge of any nature. In the
event that the payment date of any payment to capital, interests and FECI falls
on a non workday for banks, payment shall be made on the first workday following
such date.-------------------------------
THIRTY-FIRST (APPLICABLE LAW AND JURISDICTION):  This Agreement shall be
governed by and construed in accordance with the laws of the Republic of Panama.
Any controversy or conflict arising in relation to this Agreement, shall be
submitted to the courts of justice of the City of Panama, Republic of
Panama.-------------------------------------------------------------------------------------------
THIRTY-SECOND (HEADINGS): The titles that appear between parenthesis in the
respective headings of the Clauses of this Agreement have been inserted for the
convenience and easy reference of the reader and such shall lack any relevance
whatsoever in the interpretation of the content of the referred to clauses.
-------------------------------------------------------------------------------------
THIRTY-THIRD (EXPENSES AND FEES): THE DEBTOR is bound to cover the expenses of
this public deed, the registration of the First Mortgage and Antichresis on THE
MORTGAGED PROPERTY constituted in favor of THE BANK and the cancellation of such
Mortgage when the time comes to cancel such, as well as the attorney fees for
the preparation of this Agreement, judicial and extrajudicial expenses incurred
in by THE BANK to obtain the payment of the credit facilities contained in this
public deed, and any other expenses relating to this deed or the facility hereby
granted to THE
DEBTOR.--------------------------------------------------------------------------------------------------
THIRTY-FOURTH (ACCEPTANCES): THE DEBTOR accepts the obligations undertaken in
this public deed in favor of THE BANK, and THE BANK accepts the First Mortgage
and Antichresis constituted in its favor, as well as the other rights
constituted in its favor in this public deed by THE DEBTOR.---
THIS AGREEMENT HAS BEEN PREPARED ON THE BASIS OF THE MINUTES WRITTEN AND SIGNED
BY THE LAW FIRM KATZ & LOPEZ (LAW 9 of the year
1984).---------------------------------------------------------
MINUTES OF THE EXTRAORDINARY MEETING OF SHAREHOLDERS OF THE CORPORATION
PRICESMART PANAMA,
S.A.----------------------------------------------------------------------------------------------
An extraordinary meeting of the Shareholders of the corporation PRICESMART
PANAMA, S.A., a corporation duly established and organized in accordance with
the laws of the Republic of Panama, duly registered under Index Card 308071,
Role 47670, Image 60, of the Trade Section of the Public Registry of Panama, was
held on _____________ __, 2010, at 2:00 p.m.----------------------
Stating that in accordance with Article 203 of the Code of Commerce, all the
shareholders respectively ratify their attendance through electronic means of
communication or by phone, in such way making up all of the issued and
outstanding shares with a voting right. And the decision was made to celebrate
and Extraordinary Meeting of Shareholders of the corporation waiving the right
to prior notice, as set forth in Article forty-three (43) and as permitted by
Section forty-four (44) of Law thirty-two (32) of the year nineteen hundred and
twenty-seven (1927), regarding
corporations.----------------------------------------------------------------------------------------------------------------
Attending through a means of communication, by phone from the city of Panama,
Republic of Panama, the meeting was presided by the Chairman, Mr. PABLO EDUARDO
FRANCESCHI GUIZADO, and from the city of San Diego, California, U.S.A, Mr.
ERNESTO GRIJALVA acted as the Secretary, both of them officially holding such
positions.----------------------------------------------------------------------
The Chairman stated that the purpose of this meeting was to authorized the
corporation to enter into a Commercial Mortgage Loan Agreement with METROBANK,
S.A. for the sum of up to FIVE MILLION US DOLLARS and 11/100) (US$5,000,000.00)
in legal currency of the United States of America, to finance the facilities of
the new Membership Shopping Club located at Brisas del Golf, Provincia de
Panamá, guaranteed with a First Mortgage and Antichresis on Property No. 285351,
registered under document 1401363 of the Property Section of the Public Registry
of the Province of Panama, in favor of METROBANK,
S.A.-----------------------------------------------------------------------------
The following was decided and unanimously
approved:----------------------------------------------------------
FIRST: To authorize the corporation to enter into the Commercial Mortgage Loan
Agreement with METROBANK,S.A. for the amount of up to FIVE MILLION US DOLLARS
and 00/100 (US$5,000,000.00) , in legal currency of the United States of
America, to finance the facilities of the new Membership Shopping Club located
at Brisas del Golf, Provincia de Panamá.------------------
SECOND: To authorize the corporation to establish the First Mortgage and
Antichresis in favor of METROBANK, S.A. for up to the amount of FIVE MILLION US
DOLLARS AND 11/100 (US$5,000,000.00) in legal currency of the United States of
America, on Property No. 285351, registered under document 1401363, of the
Property Section of the Public Registry of the Province of
Panama.--------------------------------------------------------------------------------------------------------------------
THIRD: To authorize PABLO EDUARDO FRANCESCHI GUIZADO, bearer of Identity Card
number eight- four hundred and twenty-three- eight hundred and thirty-seven
(8-423-837), to negotiate, subscribe, declare and sign, in the terms and
conditions he considers convenient for the corporation, all the documents
required to carry out the operations described in the above
points.--------------------------------------------------------------------------------------------------------------------------
Being there nothing further to add, the meeting was
ended.---------------------------------------------------
(Illegible signature)-------PABLO EDUARDO FRANCESCHI GUIZADO---------------
Chairman.--------------
Signed in the city of Panama, Republic of Panama, on _______________ __,
2010.---------------------
(Illegible signature)----------ERNESTO
GRIJALVA--------------------Secretary------------------------------------
Signed in the city of San Diego, California, United States of America,
on____________ ___, 2010.—
The undersigned, ERNESTO GRIJALVA, Secretary of the meeting, hereby certifies
that the above is a faithful copy of the minutes of the extraordinary meeting of
Shareholders of the corporation.----
(Illegible signature)--------ERNESTO GRIJALVA----------
Secretary.-----------------------------------------------
The Notary hereby certifies that the before described Property number two
hundred and eighty-five thousand, three hundred and fifty-one (285351) is under
no indebtedness upon the submittal of the tax clearance certificate on the
Property in effect until _____________ ____, two thousand and ten
(2010)--------------------------------------------------------------------------------------------------------------
Upon advising the appearing parties that a copy of this Public Deed must be
registered, and having read the written to the appearing parties, in the
presence of the instrumental witnesses Argelis de Tejada, female, bearer of
Identity Card Number nine- one hundred and twenty-one- one thousand tow hundred
and seventy-six (9-121-1276) and Rogelio Valencia Soto, male, bearer of Identity
Card Number eight- four hundred and twenty-seven- six hundred and forty-three
(8-427-643), both Panamanians, of legal age, neighbors of this city, individuals
of my acquaintance and capable of exercising such title, all where satisfied and
signed, before me, the Notary, who attests.----------
PUBLIC DEED NUMBER
--------------------------------------------------------------------------------------------------
ERNESTO ANTONIO BOYD SASSO (Blank). PABLO EDUARDO FRANCESCHI GUIZADO (Illegible
signature). ARGELIS DE TEJADA (Blank) ROGELIO VALENCIA SOTO (Blank). KRISTY
MARÍA PONCE AIZPURÚA (Blank) Eleventh Public Notary of the Circuit of
Panama.   --------------------------------------