Exhibit 10.2

 

STOCKHOLDER VOTING AGREEMENT

 

BY AND AMONG

 

PRICESMART, INC.

 

and

 

THE STOCKHOLDERS LISTED

ON SCHEDULE A HERETO

 

Dated as of October 4, 2004

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STOCKHOLDER VOTING AGREEMENT

 

THIS STOCKHOLDER VOTING AGREEMENT (this “Agreement”) is made and entered into as
of October 4, 2004, by and among PriceSmart, Inc., a Delaware corporation (the
“Company”), and each of the entities listed on Schedule A hereto (each a
“Stockholder,” and collectively, the “Stockholders”).

 

WHEREAS, each of the Stockholders are, as of the date hereof, the beneficial
owners of that number of shares of common stock, par value $0.0001 per share
(the “Common Stock”), of the Company, set forth opposite such Stockholder’s name
on Schedule A hereto.

 

WHEREAS, the Stockholders desire that the Company enter into the Transaction (as
defined in Annex A attached hereto);

 

NOW, THEREFORE, in consideration of the mutual covenants, conditions and
agreements contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

 

1. Representations and Warranties. Each of the Stockholders hereby represents
and warrants to the Company, severally and not jointly, as follows:

 

(a) Such Stockholder is the beneficial owner of the shares of Common Stock (as
may be adjusted from time to time pursuant to Section 5 hereof, the “Shares”)
set forth opposite such Stockholder’s name on Schedule A to this Agreement and
such Shares represent all of the Shares beneficially owned (within the meaning
of Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) by such Stockholder. For purposes of this Agreement, the term
“Shares” shall include any shares of Common Stock issuable to such Stockholder
upon exercise or conversion of any existing right, contract, option, or warrant
to purchase, or securities convertible into or exchangeable for, Common Stock
(“Stockholder Rights”) that are currently exercisable or convertible or become
exercisable or convertible and any other shares of Common Stock such Stockholder
may acquire or beneficially own during the term of this Agreement. Schedule A
lists all Stockholder Rights held by such Stockholder as of the date of this
Agreement.

 

(b) Such Stockholder has all requisite power and authority to execute and
deliver this Agreement and to consummate the transactions contemplated hereby.
This Agreement has been validly executed and delivered by such Stockholder and,
assuming that this Agreement constitutes the legal, valid and binding obligation
of the other parties hereto, constitutes the legal, valid and binding obligation
of such Stockholder, enforceable against such Stockholder in accordance with its
terms (except insofar as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors’
rights generally, or by principles governing the availability of equitable
remedies).

 

(c) The execution and delivery of this Agreement by such Stockholder does not,
and the performance of this Agreement by such Stockholder will not, (i) conflict
with the certificate of incorporation or bylaws or similar organizational
documents of such Stockholder as

 

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presently in effect (in the case of a Stockholder that is a legal entity), (ii)
conflict with or violate any judgment, order, decree, statute, law, ordinance,
rule or regulation applicable to such Stockholder or by which it is bound or
affected, (iii)(A) result in any breach of or constitute a default (or an event
that with notice or lapse of time or both would become a default) under, or (B)
result in the creation of any pledge, claim, lien, charge, encumbrance or
security interest of any kind or nature whatsoever upon any of the properties or
assets of the Stockholder under, any agreement, contract, indenture, note or
instrument to which such Stockholder is a party or by which it is bound or
affected, except for such breaches, defaults or other occurrences that would not
prevent or materially delay the performance by such Stockholder of any of such
Stockholder’s obligations under this Agreement, or (iv) except for applicable
requirements, if any, of the Exchange Act, the Securities Act of 1933, as
amended (the “Securities Act”), or the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended (the “HSR Act”), require any filing by such Stockholder
with, or any permit, authorization, consent or approval of, any governmental or
regulatory authority, except where the failure to make such filing or obtain
such permit, authorization, consent or approval would not prevent or materially
delay the performance by any Stockholder of any of such Stockholder’s
obligations under this Agreement.

 

(d) The Shares and the certificates representing such Shares are now, and at all
times during the term hereof will be, held by such Stockholder, or by a nominee
or custodian for the benefit of such Stockholder, free and clear of all liens,
claims, security interests, proxies, voting trusts or agreements, understandings
or arrangements or any other encumbrances whatsoever, except for any such
encumbrances or proxies arising hereunder. Such Stockholder does not
beneficially own any shares of Common Stock other than such Stockholder’s
Shares.

 

(e) The Stockholder understands and acknowledges that the Company is proposing
the Transaction in reliance upon the Stockholders’ execution and delivery of
this Agreement.

 

2. Voting Agreements.

 

(a) Each Stockholder agrees with, and covenants to, the Company that, at any
meeting of stockholders of the Company called to vote upon the Transaction or at
any adjournment thereof or in any other circumstances upon which a vote with
respect to the Transaction is sought (the “Stockholders’ Meeting”), such
Stockholder shall appear, or cause the holder of record on any applicable record
date (the “Record Holder”) to appear, for the purpose of obtaining a quorum at
the Stockholders’ Meeting, and vote (or cause the Record Holder to vote) such
Stockholder’s Shares in favor of the Transaction and each of the other
transactions contemplated by the Transaction.

 

(b) At any Stockholders’ Meeting such Stockholder shall vote (or cause to be
voted) such Stockholder’s Shares against any amendment of Company’s Amended and
Restated Certificate of Incorporation or Amended and Restated Bylaws or other
proposal or transaction involving the Company or any of its subsidiaries, which
amendment or other proposal or transaction would in any manner impede,
frustrate, prevent or nullify the Transaction or any of the other transactions
contemplated by the Transaction (collectively, “Competing Transactions”).

 

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(c) Such Stockholder agrees to permit the Company to publish and disclose in any
and all future Preliminary or Definitive Proxy Statements on Form 14A soliciting
a shareholder vote on the Transaction and all related filings under the
securities laws such Stockholder’s identity and ownership of Shares and the
nature of its commitments, arrangements and understandings under this Agreement
and any other information required by applicable law.

 

3. Covenants. Each of the Stockholders, severally and not jointly, agrees with,
and covenants to, the Company that such Stockholder shall not, except as
contemplated by the terms of this Agreement, sell, transfer, pledge, assign or
otherwise dispose of, or enter into any contract, option or other arrangement
(including any profit-sharing arrangement) or understanding with respect to the
sale, transfer, pledge, assignment or other disposition of, the Shares
(including any options or warrants to purchase Common Stock) to any person (any
such action, a “Transfer”). For purposes of clarification, the term “Transfer”
shall include, without limitation, any short sale (including any “short sale
against the box”), pledge, transfer, and the establishment of any open “put
equivalent position” within the meaning of Rule 16a-1(h) under the Exchange Act.
Notwithstanding the foregoing, (i) Transfers of Shares as bona fide gifts, (ii)
distributions of Shares to partners, members, stockholders, subsidiaries,
affiliates, affiliated partnerships or other affiliated entities of the
undersigned, (iii) Transfers of Shares by will or intestacy, and (iv) Transfers
of Shares to a trust, the beneficiaries of which are the undersigned, shall not
be prohibited by this Agreement; provided that in the case of any such transfer
or distribution pursuant to clause (i), (ii), (iii) or (iv), each donee or
distributee shall execute and deliver to the Company a valid and binding
counterpart to this Agreement and agree to be bound by all the obligations of
the Stockholders hereunder.

 

4. Grant of Irrevocable Proxy; Appointment of Proxy.

 

(a) Each Stockholder hereby irrevocably grants to, and appoints, the Company as
such Stockholder’s proxy and attorney-in-fact (with full power of substitution),
for and in the name, place and stead of such Stockholder, to vote such
Stockholder’s Shares at any Stockholders’ Meeting (i) in favor of the
Transaction, and each of the other transactions contemplated by the Transaction,
and (ii) against any Competing Transaction.

 

(b) Each Stockholder represents that any proxies heretofore given in respect of
such Stockholder’s Shares are not irrevocable, and that any such proxies are
hereby revoked.

 

(c) Each Stockholder hereby affirms that the irrevocable proxy set forth in this
Section 4 is given in connection with the approval and execution of the
Transaction, and that such irrevocable proxy is given to secure the performance
of the duties of such Stockholder under this Agreement. Such Stockholder hereby
further affirms that the irrevocable proxy is coupled with an interest and may
under no circumstances be revoked, subject to Section 7 herein. Such Stockholder
hereby ratifies and confirms all that such irrevocable proxy may lawfully do or
cause to be done by virtue hereof. Such irrevocable proxy is executed and
intended to be irrevocable in accordance with the provisions of Section 212(e)
of the Delaware General Corporation Law. Such irrevocably proxy shall be valid
until the termination of this Agreement pursuant to Section 7 herein.

 

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5. Certain Events. Each Stockholder agrees that this Agreement and the
obligations hereunder shall attach to such Stockholder’s Shares and shall be
binding upon any person or entity to which legal or beneficial ownership of such
Shares shall pass, whether by operation of law or otherwise, including without
limitation such Stockholder’s successors or assigns. Each Stockholder agrees
that, in the event of any stock split, stock dividend, merger, reorganization,
recapitalization or other change in the capital structure of the Company
affecting the Common Stock, or the acquisition of additional shares of Common
Stock or other voting securities of the Company by any Stockholder, the number
of Shares subject to the terms of this Agreement shall be adjusted appropriately
and this Agreement and the obligations hereunder shall apply to any additional
shares of Common Stock or other voting securities of the Company issued to or
acquired by such Stockholder.

 

6. Further Assurances. Each Stockholder shall, upon request and expense of the
Company, execute and deliver any additional documents and take such further
actions as may reasonably be deemed by the Company to be necessary or desirable
to carry out the provisions hereof and to vest the power to vote such
Stockholder’s Shares as contemplated by Section 4 in the Company.

 

7. Termination. This Agreement, and all rights and obligations of the parties
hereunder, shall terminate upon the first to occur of (i) the issuance of all
the Common Stock under that certain Stock Purchase Agreement, dated of even date
herewith, by and among the Investors (as defined therein) and the Company, or
(ii) upon rejection of the Transaction by the stockholders of the Company at any
Stockholders’ Meeting. Upon such termination, no party shall have any further
obligations or liabilities hereunder, provided that no such termination shall
relieve any party from liability for any breach of this Agreement prior to such
termination.

 

8. Action in Stockholder Capacity Only. No person executing this Agreement who
is or becomes during the term hereof a director or officer of the Company makes
any agreement or understanding herein in his or her capacity as such director or
officer. Each Stockholder signs solely in his or her capacity as the beneficial
owner of, or the trustee of a trust whose beneficiaries are the beneficial
owners of, such Stockholder’s Shares and nothing herein shall limit or affect
any actions taken by a Stockholder in his or her capacity as an officer or
director of the Company to the extent permitted by the Transaction.

 

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9. Miscellaneous.

 

(a) All notices and other communications hereunder shall be in writing and shall
be deemed duly given if delivered personally, mailed by registered or certified
mail (return receipt requested), delivered by Federal Express or other
nationally recognized overnight courier service or sent via facsimile to the
parties at the following addresses (or at such other address for a party as
shall be specified by like notice):

 

(i) if to the Company, to

    PriceSmart, Inc.     9740 Scranton Road     San Diego, CA 92121-1745    
Attention: Robert M. Gans, Esq.     Telephone: (858) 404-8821     Facsimile:
(858) 404-8828     with a copy to:     Latham & Watkins LLP     12636 High Bluff
Drive, Suite 300     San Diego, CA 92130     Attention: Robert E. Burwell, Esq.
    Telephone: (858) 523-5400     Fascimile: (858) 523-5450     and

 

(ii) if to a Stockholder, to the address set forth under the name of such
Stockholder on Schedule A hereto.

 

(b) The headings contained in this Agreement are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Agreement.

 

(c) This Agreement may be executed in two or more counterparts, all of which
shall be considered one and the same agreement.

 

(d) This Agreement (including the documents and instruments referred to herein)
constitutes the entire agreement, and supersedes all prior agreements and
understandings, both written and oral, among the parties with respect to the
subject matter hereof.

 

(e) This Agreement shall be governed by, and construed in accordance with, the
laws of the State of Delaware, regardless of the laws that might otherwise
govern under applicable principles of conflicts of laws thereof.

 

(f) Neither this Agreement nor any of the rights, interests or obligations under
this Agreement shall be assigned, in whole or in part, by operation of law or
otherwise, by any of the parties without the prior written consent of the other
parties. Any assignment in violation of the foregoing shall be void.

 

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(g) Each Stockholder agrees that irreparable damage would occur and the Company
would not have any adequate remedy at law in the event that any of the
provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached. It is accordingly agreed that the
Company shall be entitled to an injunction or injunctions to prevent breaches by
each Stockholder of this Agreement and to enforce specifically the terms and
provisions of this Agreement, this being in addition to any other remedy to
which they are entitled at law or in equity.

 

(h) If any term, provision, covenant or restriction herein, or the application
thereof to any circumstance, shall, to any extent, be held by a court of
competent jurisdiction to be invalid, void or unenforceable, the remainder of
the terms, provisions, covenants and restrictions herein and the application
thereof to any other circumstances, shall remain in full force and effect, shall
not in any way be affected, impaired or invalidated, and shall be enforced to
the fullest extent permitted by law.

 

(i) Nothing contained in this Agreement shall be deemed to vest in the Company
any direct or indirect ownership or incidence of ownership of or with respect to
any of the Stockholders’ Shares. All rights, ownership and economic benefits of
and relating to each Stockholder’s Shares shall remain and belong to such
Stockholder, and the Company shall not have any authority to manage, direct,
superintend, restrict, regulate, govern, or administer any of the policies or
operations of the Company or exercise any power or authority to direct any
Stockholder in the voting of any of such Stockholder’s Shares, except as
otherwise provided herein, or the performance of such Stockholder’s duties or
responsibilities as a stockholder of Company.

 

(j) No amendment, modification or waiver in respect of this Agreement shall be
effective against any party unless it shall be in writing and signed by such
party.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

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IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by its
officer thereunto duly authorized and each Stockholder has signed this
Agreement, all as of the date first written above.

 

PRICESMART, INC.

By:

 

/s/ Robert M. Gans

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Name:

 

Robert M. Gans

Title:

 

Executive Vice President

 

VOTING AGREEMENT

COUNTERPART SIGNATURE PAGE

 

Page 1 of 2

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IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by its
officer thereunto duly authorized and each Stockholder has signed this
Agreement, all as of the date first written above.

 

STOCKHOLDER:

THE PRICE GROUP, LLC

By:

 

/s/ James Cahill

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Name:

 

Jim Cahill

Title:

 

Manager

Address:

 

7979 Ivanhoe Avenue #520

   

La Jolla, California 92037

Number of Shares

of Company Stock

Beneficially Owned: 165,577

SOL AND HELEN PRICE TRUST

By:

 

/s/ Sol Price

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Name:

 

Sol Price

Title:

 

Trustee

Address:

 

7979 Ivanhoe Avenue, #520

   

La Jolla, California 92037

Number of Shares

of Company Stock

Beneficially Owned: 368,594

ROBERT AND ALLISON PRICE TRUST 1/10/75

By:

 

/s/ Robert E. Price

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Name:

 

Robert E. Price

Title:

 

Trustee

By:

 

/s/ Allison Price

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Name:

 

Allison Price

Title:

 

Trustee

 

VOTING AGREEMENT

COUNTERPART SIGNATURE PAGE

 

Page 2 of 2

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Address:

 

7979 Ivanhoe Avenue, #520

   

La Jolla, California 92037

Number of Shares

of Company Stock

Beneficially Owned: 179,948

THE PRICE FAMILY CHARITABLE FUND

By:

 

/s/ James Cahill

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Name:

 

James Cahill

Title:

 

Executive Vice President

Address:

 

7979 Ivanhoe Avenue, #520

   

La Jolla, California 92037

Number of Shares

of Company Stock

Beneficially Owned: 654,382

ROBERT AND ALLISON PRICE CHARITABLE

REMAINDER TRUST

By:

 

/s/ Robert E. Price

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Name:

 

Robert E. Price

Title:

 

Trustee

By:

 

/s/ Allison Price

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Name:

 

Allison Price

Title:

 

Trustee

Address:

 

7979 Ivanhoe Avenue, #520

   

La Jolla, California 92037

Number of Shares

of Company Stock

Beneficially Owned: 596,067

 

VOTING AGREEMENT

COUNTERPART SIGNATURE PAGE

 

Page 3 of 2

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Annex A

 

The “Transaction” is composed of the following elements:

 

  1. A private placement of up to 3,187,329 shares of the Company’s common
stock, par value $.0001 per share (“Common Stock”), at a price of $8 per share,
to the Price Group, to be funded through the conversion of a $25.0 million
bridge loan extended to the Company by the Price Group in August 2004;

 

  2. An issuance of an aggregate of 2,200,000 shares of Common Stock to the Sol
and Helen Price Trust, the Price Family Charitable Fund, the Robert and Allison
Price Charitable Remainder Trust, the Robert and Allison Price Trust 1/10/75 and
the Price Group in exchange for all of the outstanding shares of the Company’s
8% Series B Cumulative Convertible Redeemable Preferred Stock, par value $.0001
per share;

 

  3. An issuance of up to 2,625,070 shares Common Stock, valued for such purpose
at a price of $8 per share, to the Price Group in exchange for up to $20.0
million of current obligations, plus accrued and unpaid interest, owed by the
Company to the Price Group;

 

  4. An issuance of up to 15,791,477 shares of Common Stock in connection with a
rights offering pursuant to rights to be distributed to the holders of
outstanding shares of Common Stock (the “Rights Offering”);

 

  5. An issuance of up to 3,125,000 shares of Common Stock, at a price of $8 per
share, to the Price Group in connection with the Rights Offering;

 

  6. An issuance of up to 2,226,886 shares of Common Stock, at a price of $10
per share, to the holders of all of the shares of the Company’s 8% Series A
Cumulative Convertible Redeemable Preferred Stock, par value $.0001 per share
(the “Series A Preferred Stock”), in exchange for all of the outstanding shares
of the Company’s Series A Preferred Stock at its initial stated value of $20.0
million plus all accrued and unpaid dividends (the “Series A Exchange”); and

 

  7. An amendment to the Amended and Restated Certificate of Incorporation of
the Company to increase the number of authorized shares of Common Stock from
20,000,000 to 45,000,000 shares.

 

ANNEX A

 

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SCHEDULE A

 

OWNERSHIP OF SHARES

 

Name and Address of Stockholder

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   Number of Shares of Company Common Stock
Beneficially Owned(1)

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The Price Group, LLC

   165,577

Sol and Helen Price Trust

   368,594

Robert and Allison Price Trust 1/10/75

   179,948

The Price Family Charitable Fund

   654,382

Robert and Allison Price Charitable Remainder Trust

   596,067

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(1) Includes only those shares outstanding as of the date of this Agreement.

 

SCHEDULE A