Document:

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                                                                  Exhibit 10.4

                                FEBRUARY 28, 2001

                                PRICESMART, INC.

                                       AND

                            NOVONT HOLDINGS CO., LTD.

                                       AND

                 NOVONT, INC., dba TIMETONE INTERNATIONAL GROUP

                                       AND

                       CHENG CHENG IMPORT EXPORT CO., LTD.

           ===========================================================

                        PRC TECHNOLOGY LICENSE AGREEMENT
                                    (AMENDED)

           ===========================================================

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                                    CONTENTS

1.    Definitions And Interpretation..........................................6

2.    License.................................................................7

3.    Computer Software Systems...............................................8

4.    Technical Support Service..............................................10

5.    Consideration for License and Rights...................................12

6.    Additional Duties of Licensee..........................................14

7.    Merchandising..........................................................17

8.    Protection of Intellectual Property Rights.............................19

9.    Indemnities............................................................20

10.   Confidential Information And Non-competition...........................22

11.   Term; Termination......................................................23

12.   Termination............................................................23

13.   Arbitration............................................................25

14.   General Provisions.....................................................26

15.   Restriction on Transfers...............................................27

16.   [Intentionally deleted]................................................28

17.   Change Of Control Of Licensor..........................................28

Exhibit A    Agency Agreement between Novont Holdings Co., Ltd. andCheng Cheng
Import-Export Co., Ltd.......................................................31

Exhibit B    Territory.......................................................32

Exhibit C    J.D. Edwards Agreement..........................................33

Exhibit D    Form Of Gross Sales Report......................................34

Exhibit E    Territory Outlet Openings.......................................35

Exhibit F    Current Policies, Procedures and Quality Standards..............36

Exhibit G    Employee's Confidential Information Agreement...................41

Exhibit H    Key Employee's Confidentiality and Non-Competition Agreement
("Agreement")................................................................42

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THIS AGREEMENT, dated as of February 28, 2001, is made:

BETWEEN

(1)    PRICESMART, INC. a corporation organized and existing under the laws of
       the State of Delaware, United States of America (USA), with a principal
       office and place of business at 4649 Morena Blvd., San Diego, CA 92117,
       USA (LICENSOR);

(2)    NOVONT HOLDINGS CO., LTD., a limited liability company, organized and
       existing under the laws of the People's Republic of China (PRC), with its
       registered address at Xuhai Building, Room 601, No. 86 Haidian Road,
       Haidian District, Beijing, PRC (LICENSEE);

(3)    NOVONT, INC., dba TIMETONE INTERNATIONAL GROUP, a corporation organized
       and existing under the laws of the State of California, USA, with its
       registered address at 444 South Flower St., Los Angeles, CA., 90071 (US
       LICENSEE);

(4)    Cheng Cheng Import-Export Co., Ltd. a company organized and existing
       under the laws of the PRC possessing valid foreign trade rights, with its
       registered address at No. 18 Xueqing Road, Haidian District, Beijing,
       PRC, as agent on behalf of Licensee for the importation of the relevant
       technology and goods under this Agreement (IMPORT AGENT); the Agency
       Agreement between Licensee and the Import Agent is attached hereto as
       Exhibit A.

WHEREAS

(A)  Licensor owns the rights to certain trade secrets, know-how and other
intellectual property which have proven sufficient for the design,
establishment, management and operation of a business engaged in the sale of
general merchandise, food and related products and services (the MERCHANDISE
BUSINESS SYSTEM); and

(B)  Licensee desires that Licensor provide to Licensee the right to establish
the Merchandise Business System in the Territory and the right to receive
certain merchandising and technical support from Licensor, including training of
Licensee's personnel in the methods of establishing and operating the
Merchandise Business System;

(C)  Licensor is willing to provide  such rights to  Licensee,  subject to the
terms and conditions set forth below;

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(D)  US Licensee is willing to and agrees to facilitate the implementation of
this Agreement as may be necessary or appropriate;

(E)  The Import Agent has agreed to act as import agent for Licensee with regard
to Licensee's import requirements;

(F)  This Agreement is intended to and shall supercede the PRC Technology
License Agreement entered into on January 4, 1999 between Licensor, Licensee's
predecessor in interest BEIJING PRICESMART MEMBERSHIP SHOPPING ENTERPRISES
GROUP, US Licensee and Import Agent.

IT IS AGREED AS FOLLOWS:

1.     DEFINITIONS AND INTERPRETATION

1.1    In this Agreement:

AFFILIATE shall mean in relation to any individual, organization (unincorporated
or incorporated), association, trust, entity or partnership (collectively a
PERSON) any other Person which it controls or which controls it or with which it
is under common control. For this purpose, CONTROL means the direct or indirect
ownership or control of fifty percent (50%) or more of the interest or equity of
the relevant Person.

APPROVAL AUTHORITY shall mean the Ministry of Foreign Trade and Economic
Cooperation or its subsidiary agency, as applicable.

BUSINESS PLAN shall mean an operating plan prepared by Licensee for the
establishment and operation of the Merchandise Business System in the Territory,
including among other things, expenses and revenues.

GOVERNMENTAL APPROVAL shall mean any consent, permission, approval,
authorization, order or expiration of waiting period following filing or
notification, of any agency or instrumentality of the government(s) of the PRC
that is required in order for the parties to this Agreement to carry out all
provisions of this Agreement.

PERSON shall mean any individual, organization (unincorporated or incorporated),
association, trust, entity or partnership.

PRICESMART INTELLECTUAL PROPERTY shall mean all intangible proprietary rights
owned by or controlled by Licensor relating to the ownership and operation of
the Merchandise Business System in the PRC, including, without limitation,
Licensor Trademarks, intellectual property, copyrights, trade dress, patents
and/or trademarks or service marks,

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private labels and brand names, trade secrets, know-how and technical expertise.

TERRITORY shall mean the People's Republic of China, excluding Hong Kong, Macao
and Taiwan.

TERRITORY OUTLET shall means a store established and operated in the Territory
by Licensee using the Merchandise Business System.

TRANSACTION shall mean, whether in one or a series of transactions, the sale,
transfer or other disposition, directly or indirectly, of all or a significant
portion (defined as at least a 50% interest, taking into account any right or
option to acquire an interest in Licensor subsequent to a Transaction) of the
business, assets or securities of Licensor whether by way of a merger or
consolidation, reorganization, recapitalization or restructuring, tender or
exchange offer, negotiated purchase, leveraged buyout, minority investment or
partnership, collaborative venture or otherwise, or any other extraordinary
corporate transaction involving Licensor.

YEAR shall mean a twelve-month period and each anniversary thereof.

1.2    In this Agreement:

(a)    references to clauses are to clauses of this Agreement;

(b)    words importing a gender include every gender; and

(c)    headings are inserted for convenience only and shall not affect the
       construction of this Agreement.

2.     LICENSE

2.1    License. Subject to the terms and conditions of this Agreement, to
Licensee's compliance with and observance of all such terms and conditions, and
to the terms of existing agreements to which Licensor and its Affiliates may be
parties, Licensor hereby grants to Licensee an exclusive license to use in the
Territory and for the Merchandise Business Systems only, such of the PriceSmart
Intellectual Property as is reasonably required to develop and operate the
Territory Outlets for so long as this Agreement shall remain in effect but not
thereafter, solely in connection with the establishment and operation of
Territory Outlets.

2.2    Rights Reserved. All rights not granted by Licensor hereunder are
reserved to Licensor. Any use by Licensee of the PriceSmart Intellectual
Property beyond the rights herein granted shall be a material breach of this
Agreement by Licensee.

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2.3    Scope of License. This license shall remain in effect for the term of
this Agreement only. The scope of this license shall be subject to contractual
and legal licensing restrictions to which Licensor is subject, which
restrictions may limit the ability of Licensor to make certain PriceSmart
Intellectual Property available to Licensee under this Agreement.

2.4    No Right of Sub-license. Licensee shall have no right to sub-license any
of the rights granted to Licensee herein without first obtaining the express
written approval of Licensor. However, Licensee may sub-license its rights under
clause 2.1 to a Person in which Licensee directly holds 50% or more of the
voting equity, provided: (i) Licensor approves in advance the other equity
owners of such sub-licensee, who shall be issued equity in sub-licensee solely
in exchange for a contribution of real property (or the rights to use the same)
for use by sub-licensee as a Territory Outlet; (ii) Licensor approves the
sub-license agreement and the terms of any other agreements between Licensee and
sub-licensee in advance; and (iii) sub-licensee agrees to be bound by all
obligations of Licensee hereunder. Licensee shall be liable for all obligations
of sub-licensee under any sub-licence agreement or any other agreement between
Licensee and sub-licensee. Licensor may, but shall not be obliged to, prepare
all sub-licensing agreements between Licensee and sub-licensee.

3.     COMPUTER SOFTWARE SYSTEMS

3.1    Transfer.  Licensor shall transfer to Licensee, for use solely in
connection with the operation of Territory Outlets, (i) the Source Code for the
interface to the point of sale system; and (ii) the Source Code for the PC-based
membership application system; and (iii) all historic data directly related to
Licensee's master file records and Licensee's transaction records residing in
Licensor's AS-400 System (collectively, the "Transferred Data").

3.2    One Time Transfer Fee. Concurrent with the execution of this Agreement,
Licensor shall pay to Licensee a one time transfer fee of US$52,630 as
consideration for the Transferred Data.

3.3    Access to Computer Systems. If so requested by Licensee, Licensor shall
allow Licensee to have continued access (in the same manner as such access has
existed immediately prior to the execution of this Agreement) to the computer
software systems based at Licensor's headquarters up to May 1, 2002. If Licensee
requests Licensor for such access for a full year, Licensee shall pay to
Licensor a fee of US$58,480 commencing 1 May 2001 for the first Territory Outlet
and US$17,544 for each additional Territory Outlet. The fee shall be paid in
advance on a

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monthly basis, prorated for any portion of the year for which Licensee requests
and receives such access. Licensee shall also reimburse Licensor for any amounts
which it is required to pay to the licensor of the computer software systems in
order to allow Licensee to access such computer software systems.

3.4    Programming Errors. If Licensee requests access to the computer software
systems pursuant to clause 3.1 above, and in the event the computer software
systems fail during such period to properly support the subject systems
functions during such period, Licensor shall, at its expense, promptly fix any
Licensor programming error in the software comprising the computer software
systems, which causes the computer software systems not to function as intended.

3.5    Data Link.  If Licensee requests access to Licensor's computer software
systems, then Licensee shall be solely responsible for providing and maintaining
the data communications link to provide remote access, as approved by Licensor,
between the computer system in San Diego, California which operates the computer
software systems and the Licensee computer equipment in the Territory. Licensee
shall bear the costs associated with obtaining, installing and maintaining such
data communications link.

3.6    Confidentiality and Other Terms. Licensee shall maintain in
confidentiality and shall not transfer, sub-license or otherwise disclose the
Transferred Data to any third party. Licensee shall not use the Transferred Data
to compete, directly or indirectly, individually or in conjunction with other
persons or entities, with Licensor outside of the Territory. Licensee agrees
that it shall be bound by the terms and conditions of the Software License
Agreement attached hereto as Exhibit C with respect to the computer software
systems; provided, that Licensee shall not be deemed to receive any rights or
benefits under such agreement by agreeing to be bound by its terms. All of
Licensee's rights to access the computer software systems shall arise pursuant
to this Agreement. The transfer of the Source Codes referenced in Section 3.1(i)
and (ii) is on a non-exclusive basis.

3.7    Limitation of Damages. The Parties acknowledge that Licensor provides
access to the computer software systems on an "as is" basis, pursuant to and
subject to Licensor's Software License Agreement with J.D. Edwards & Company,
attached hereto as Exhibit C. As such, Licensor's liability towards Licensee for
the computer software systems shall be subject to the same terms and conditions
as the liability of J.D. Edwards & Company to Licensor under such Software
License Agreement. Licensee agrees to execute an "Affiliate Amendment",

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whereby Licensee affirms to J.D. Edwards that Licensee has agreed to be bound to
the applicable terms of said Software License Agreement.

4.     TECHNICAL SUPPORT SERVICE

4.1    Design Services.

(a)    Licensor shall be available to assist Licensee by evaluating building
       design, building layout and construction specifications for each
       Territory Outlet. Licensor shall also provide design specifications (and
       updated revisions thereof) for the trade dress, brand identification,
       fixtures and equipment used by Licensor in the operation of its own
       business, to the extent applicable to the Territory Outlets. Licensee
       shall reimburse Licensor for all architectural, engineering and related
       fees paid to third parties in connection with the design services
       provided under this subsection.

(b)    The services provided by Licensor to Licensee pursuant to Section 4.1(a)
       shall not include any construction management services, including without
       limitation, the sourcing of contractors or construction materials
       necessary for the construction of the Territory Outlets. In the event
       that Licensor provides such services to Licensee, Licensee shall
       reimburse Licensor for all direct and indirect cost associated with
       providing such services, including without limitation, the cost of
       salaries and employee benefits, travel, lodging and living expenses for
       the Licensor staff members which provide such services.

4.2    Licensor Executive Support. Licensor's senior staff will available to
advise Licensee's officers in the preparation, development and updating of the
Business Plan. Licensor's senior staff shall make at least two visits per Year
(commencing as of the date of this Agreement) to the PRC to evaluate the
progress of the Territory Outlets and to advise Licensee management concerning
operational issues. Additionally, a Senior Country Manager shall be appointed by
Licensor, to serve as the liaison between Licensor and Licensee.

4.3    Management Training. At the request of Licensee, Licensor shall train key
management staff of Licensee (including Store Managers, Buying Managers and
Central Staff), on Licensor's premises (in stores designated by Licensor or in
the central offices of Licensor). The total of such trainees shall not exceed
three in any three month period. Such training shall consist of "on the job"
experience under standard supervision (for clarity, no "one-on-one training, nor
classroom training, nor specialized training documents or materials). Licensee
shall be fully

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and solely responsible for all travel, lodging and any related personal expenses
of such trainees, as well as any out of pocket expenses which may be incurred by
Licensor arising from such training.

4.4   Advisory Services. During the term of this Agreement, Licensee from time
to time may request Licensor to provide advisory services over and above the
services provided elsewhere in this Agreement which entail brief additional
visits by Licensor personnel to the Territory. If Licensor agrees to provide
such services, Licensee shall reimburse Licensor for all travel, lodging, and
living expenses incurred by Licensor in connection with such visits and, except
for reimbursements of such expenses, there shall be no additional fees for such
services.

4.5    New Technology.

(a)    If and when Licensor develops or obtains new Licensor Intellectual
       Property (including Intellectual Property related to marketing,
       merchandising, construction and design matters, but not including any
       computer software systems or matters related thereto) relevant to the
       Territory Outlets, Licensor shall inform Licensee and shall make such new
       Licensor Intellectual Property available to Licensee. Licensee may, but
       is not obligated to, accept such new Licensor Intellectual Property for
       use in the Territory Outlets during the term of this Agreement. If
       Licensee accepts such new Licensor Intellectual Property, Licensor shall
       provide Licensee with the right to use such new Licensor Intellectual
       Property in the Territory Outlets without payment of any additional
       consideration; however, if Licensor incurs any third-party license fee or
       royalty in connection with Licensee's use, Licensee shall reimburse
       Licensor in full that amount. Notwithstanding the foregoing, if Licensor
       is unable, due to contractual or other restrictions, to make any of the
       foregoing available to Licensee, Licensor shall have no obligation to do
       so. Further, notwithstanding the foregoing, if Licensor desires that
       Licensee utilizes the new Licensor Intellectual Property, Licensee shall
       do so, but Licensee then need not pay any additional third party license
       fee or royalty.

(b)    If and when Licensee develops or obtains new knowledge, know-how or
       technology relevant to the Merchandise Business System or the Territory
       Outlets, Licensee shall make such new knowledge, know-how or technology
       available to the Licensor. Licensor may, but is not obligated to, accept
       such new knowledge, know-how or technology. If Licensor accepts such new
       knowledge, know-how or technology, Licensee shall provide Licensor a
       world-wide (excluding the Territory) royalty-free license to use and
       sublicense

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       during the term of this Agreement such new knowledge, know-how or
       technology; provided that if Licensee incurs any unrelated third-party
       license fee or royalty in connection with Licensor's use, Licensor shall
       reimburse Licensee in full that amount. Notwithstanding the foregoing, if
       Licensee is unable, due to contractual or other restrictions, to make any
       of the foregoing available to Licensor, Licensee shall have no obligation
       to do so.

4.6    Invoicing and Payment. Licensor shall invoice Licensee monthly for any
reimbursement of expenses owed under this Section 4. Licensee shall remit
payment to Licensor within fourteen (14) days of receipt of each such invoice.

5.     CONSIDERATION FOR LICENSE AND RIGHTS

5.1    Annual Royalty. In consideration of rights granted to Licensee by
Licensor and all training, trade secrets, technical data, know-how and other
PriceSmart Intellectual Property to be provided by Licensor, during the term of
this Agreement, Licensee shall pay to Licensor an annual flat fee , commencing
April 1, 2001 and thereafter extending throughout the term of this Agreement, in
the amount of US$116,960 for each Territory Outlet (the ANNUAL ROYALTY). The
Annual Royalty shall be paid on a quarterly basis in arrears (on June 30,
September 30, December 31 and March 31 of each Year) and shall be prorated for
newly-opened Territory Outlets. (Sums due through March 30, 2001 under the PRC
Technology License Agreement which is referenced in clause F of the Recitals of
this Agreement shall be due and paid pursuant to that agreement.)

5.2    Gross Sales Report. Within fifteen (15) days of the end of each calendar
month, Licensee will transmit the monthly sales information shown on Exhibit D
to Licensor in San Diego, California.

5.3    Payment in U.S. Dollars. Licensee shall pay each quarterly instalment of
the Annual Royalty and all other payments to be made by Licensee to Licensor
under this Agreement in U.S. Dollars.

5.4    Method of Payment. All payments made by Licensee to Licensor under this
Agreement, shall be made by wire transfer, as Licensor shall direct. Any amounts
not paid when due shall bear interest until paid at a rate that is four percent
(4%) per annum above the prime lending rate of Bank of America, N.A. Such
interest shall be compounded daily until paid in full.

5.5    [Intentionally deleted]

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5.6    No Withholdings. Licensee shall make all payments free and clear and
without subtraction of any taxes, deductions, withholdings, conversion fees,
wire transfer fees or offset of any kind, other than required withholding in the
PRC for business tax and for passive income tax withholding pursuant to Article
19 of the Foreign Enterprises Tax Law. Licensee may not offset, deduct or
withhold amounts owed it by Licensor. In the event of a change in PRC law that
results in Licensor receiving reduced payments under this Agreement, the Parties
agree to take such measures as are necessary to ensure that Licensor receives
the amounts contemplated by the Parties.

5.7    Annual Sales Report. Not later than sixty (60) days after the end of each
calendar year, Licensee shall send to Licensor by facsimile or data
transmission, a report in English, verified by an independent auditor, showing
the calculation of annual gross sales for the immediately preceding calendar
year for Licensee as a whole and for each Territory Outlet in United States
Dollars (the "Annual Sales Report"). The Annual Sales Report shall be
accompanied by an audited balance sheet and profit and loss statement for
Licensee prepared in accordance with United States generally accepted accounting
principles. The cost of the Annual Sales Report shall be paid by Licensee.

5.8    Shortfall Fee. Licensee acknowledges that it intends to open and operate
Territory Outlets during the term hereof at a rate no less than the schedule
shown on Exhibit E. To the extent the Licensee fails for any reason to open and
operate the minimum number of Territory Outlets as shown on the aforesaid
Exhibit E in any "Shortfall Year" (as defined in this Section 5.8), Licensee
shall pay Licensor a "Shortfall Fee" US$116,960 for each Territory Outlet not
opened or operated. (A "Shortfall Year" shall mean each twelve (12) month period
from April 1, 2001, and from each anniversary of such date.) The number of
Territory Outlets shall be measured as of the end of each Shortfall Year for
which such number of Territory Outlets is required and such Shortfall Fee, if
any, shall be due and payable within thirty (30) days after the end of each
Shortfall Year for which such number of Territory Outlets is not achieved. No
Shortfall Fee shall be payable if the total number of Territory Outlets open at
the end of the Shortfall Year in question is at or above the minimum set forth
on Exhibit E.

5.9    Additional Remedies. In addition to all other remedies, but subject to
Section 5.9(a), Licensor may, at its option, terminate this Agreement, or
terminate the exclusivity granted by this Agreement, so that, upon notice, it
will revert to a non-exclusive license if Licensee fails for any reason to have
at least twenty-five Territory Outlets operating as of April 1, 2006. In the
event Licensor opts to continue this Agreement on a non-exclusive basis,
Licensee may continue to use the rights

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licensed under this Agreement on a non-exclusive basis and all other provisions
hereof and all remedies of this Agreement remain in full force and effect,
except that Section 5.8 shall no longer apply and Licensee thereafter only shall
open new Territory Outlets with Licensor's prior written consent.

(a)    The foregoing notwithstanding, Licensor's remedies under Section 5.9
       shall not apply for so long as the failure to have a sufficient number of
       Territory Outlets operating is delayed or prevented by an act of God, a
       governmental prohibition (aside from Licensee's failure to obtain
       available permits or licenses), a strike, a flood, a riot or a war
       (declared or undeclared ) ("Force Majeure Event"), provided that:

       (i)    In order to excuse such delay or failure hereunder the Licensee
              shall promptly notify Licensor of the Force Majeure Event,
              specifying the nature and particulars thereof and its expected
              duration; and

       (ii)   Within ten (10) days after the cessation of such Force Majeure
              Event, Licensee shall give notice to Licensor specifying the date
              of cessation thereof; and

       (iii)  Upon cessation of the Force Majeure Event the remedies of Section
              5.9 shall remain effective with all time periods contained therein
              deemed extended by the length of time between the notice of force
              Majeure Event and the cessation of the Force Majeure Event.

6.     ADDITIONAL DUTIES OF LICENSEE

6.1    Compliance with Business Plan

Licensee shall provide a Business Plan to Licensor during October of each Year
for the ensuing two (2) calendar Years, and Licensee will use its best efforts
to comply with the Business Plan.

6.2    Territory Outlets' Name. All Territory Outlets shall be operated under
the name "PriceSmart". The name, and its Chinese counterpart, shall remain the
exclusive property of Licensor, and shall be considered part of PriceSmart's
Intellectual Property. Licensor shall not unilaterally require Licensee to
operate the Territory Outlets under a different name. If it becomes necessary
for Licensor to require Licensee to change the name of the Territory Outlets,
Licensor shall consult with Licensee and obtain its consent to the change (which
shall not be unreasonably withheld), otherwise Licensor shall be deemed to have
breached this

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Agreement and shall compensate Licensee for its costs, expenses and losses
resulting therefrom.

6.3    Observance of Licensor Policies and Corrective Action

(a)    In establishing and operating Territory Outlets, Licensee shall comply
       with all reasonable policies, procedures and quality standards
       established by Licensor for operation of a Territory Outlet. Current
       policies, procedures and quality standards are contained in Exhibit F.
       Such policies, procedures and quality standards may be supplemented and
       amended from time to time by Licensor in its reasonable discretion. A
       material failure to conform thereto shall be a material breach of this
       Agreement.

(b)    Licensee agrees that, consistent with Licensor's policies, it shall
       maintain the condition and appearance of Territory Outlets as clean,
       attractive, modern, sanitary, convenient and efficiently operated stores
       selling high-quality products. If at any time, in Licensor's reasonable
       judgement, the general state of repair, appearance or cleanliness of a
       Territory Outlet or any aspect thereof, does not meet Licensor's
       standards, Licensor shall notify Licensee of such breach. Notice under
       this subsection shall be deemed a notice of breach under Section
       12.1(d)Licensor may exercise all of its remedies hereunder for breach,
       including among other things, termination under Section 12.1. In
       addition, Licensor shall have the right, but not the obligation, to enter
       the premises of the Territory Outlet, after reasonable notice to Licensee
       and at reasonable hours, to effect the repairs and other changes to bring
       the Territory Outlet into conformity, and Licensee shall reimburse
       Licensor for all reasonable costs connected thereto.

6.4    Compliance With Laws, Taxes. In establishing and operating Territory
Outlets, Licensee shall observe and abide by all applicable laws, ordinances,
rules, regulations, and licensing requirements of any governmental or
quasi-governmental entity. Licensee shall prepare and file, at its own expense,
all filings required by applicable tax and other laws in the PRC, and shall pay
all taxes required to be paid in connection with the establishment and operation
of Territory Outlets, their property and the income derived therefrom. Licensee
will fully cooperate and use good faith, diligent efforts to assist Licensor
with regard to securing all Governmental Approvals (including that of the
Approval Authority), as well as the registration of this Agreement, if such
registration is required by law. Licensee agrees to comply with Licensor's
policies on ethical business conduct. Licensee shall not give anything of value
to any government official to obtain or retain business. Licensee shall ensure
that any individual working for Licensee but who is an employee of

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Licensor or any of Licensor's affiliates shall not be required to do any of the
following actions: offer to give or give anything of value to any government
official to influence any act or decision of such official or government, or to
obtain or retain business.

6.5    Insurance. Licensee will obtain and maintain, at its expense, a policy or
policies of property, general liability and products liability insurance, with
endorsements naming as additional insured Licensor, and any other Licensor
Affiliate designated by Licensor. The policy or policies shall be in such
amounts, with such companies and containing such other provisions which shall be
reasonably satisfactory to Licensor. All such policies shall provide that the
coverage thereunder shall not be terminated without at least thirty (30) days'
prior written notice to Licensor and the other additional insured. Licensee
shall provide copies of certificates of insurance to Licensor evidencing
compliance with this Section.

6.6    Records. Licensee will maintain, in the English language, complete
financial and other records of all transactions involving the Territory Outlets
and this Agreement for at least seven (7) Years after each such record has been
created. All records shall be filed in such a way that Licensor shall be able to
access and use such records.

6.7    Inspections. Licensee shall allow (i) Licensor employees, at any
reasonable time and from time to time and (ii) Licensor's designated
representatives, including without limitation, auditors, financial advisors and
legal advisors, at any reasonable time upon twenty-four (24) hours prior notice
and from time to time, to enter any Territory Outlet or other business premises
of Licensee and/or its Affiliates and examine or inspect such premises and
Licensee's and/or its Affiliates' books and records, for the purpose of
determining whether Licensee is complying in all respects with this Agreement.
Licensee shall, and shall cause its Affiliates, employees and representatives
to, cooperate fully with such inspections to ensure that Licensor and its
designated representatives have access to all information they consider
necessary to verify compliance by Licensee with this Agreement. Each party shall
bear its own costs in connection with such inspections.

6.8    Injunctive Relief. Licensee acknowledges that damages would be an
inadequate remedy for any breach of the provisions of Sections 6.3, 6.4 and 6.7.
Therefore, the obligations of Licensee hereunder shall be specifically
enforceable and Licensor shall be entitled to an injunction, restraining order
or other equitable relief, restraining any party from committing any violations
of the provisions of Sections 6.3, 6.4 and 6.7 above, and the prevailing party
at any of such proceedings for injunctive relief shall be entitled to all costs,
expenses, and fees (including, without

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limitation, attorneys' fees) incurred in connection with such action. Such
remedies shall be cumulative and not exclusive, and shall be in addition to any
other remedy any party may have.

6.9    Visas and Work Permits. Licensee shall fully cooperate with Licensor to
assure availability of visas and, if applicable, work permits from the relevant
governmental entities in the PRC to enable personnel of Licensor to perform
Licensor's rights and obligations hereunder.

6.10   Membership Cards: Reciprocal Memberships. Licensee shall issue membership
cards to its members, and shall design its membership cards in the format,
graphics, and size reasonably specified by Licensor. Licensor and Licensee agree
to permit reciprocal shopping privileges between members of the Territory
Outlets and members of any other outlets licensed or operated by Licensor.

7.     MERCHANDISING.

7.1    Licensor Product Sourcing Program. Licensor shall allow Licensee to
participate in a product sourcing program whereby Licensee purchases from
Licensor goods (LICENSOR GOODS) from the United States and certain other
locations outside the PRC. When Licensee purchases Licensor Goods from Licensor,
Licensor will utilize its systems to provide to Licensee integrated cost, and
efficient distribution methods with regard to such Licensor Goods, including
assistance in negotiating shipping rates and tracking landed costs for such
Licensor Goods. Licensor shall designate, in its discretion, Licensor
merchandising employees who shall assist Licensee in such program. As to any
particular order for Licensor Goods, neither party shall be obligated to
purchase from or sell to the other party, except to the extent a purchase order
is submitted by Licensee and accepted by Licensor in its discretion under
Section 7.2.

7.2    Purchase Orders. Orders for Licensor Goods shall be placed by Licensee
utilizing a form of purchase order to be provided for this purpose by Licensor.
Each purchase order, if accepted by Licensor, shall be deemed a separate sale
between Licensor and Licensee. No purchase order for Licensor Goods shall have
any effect, legal or otherwise, until and unless it is accepted in writing by
Licensor.

7.3    Payment. Prices and payments for Licensor Goods shall be in United States
Dollars. Payments shall be made through electronic funds transfers or pursuant
to the provisions of an irrevocable commercial letter of credit, as determined
by Licensor in its discretion. Any such letter of credit shall be issued only by
a bank approved in writing by Licensor in its discretion, and shall contain only
such terms and

                                      17
<PAGE>

conditions approved in writing by Licensor in its discretion. Licensee shall
obtain any reasonable amendments to such letter of credit requested from time to
time by Licensor. Licensee shall bear all expenses for any letter of credit or
wire transfers, except amendments requested by Licensor after it has approved
the terms and conditions of such letter of credit.

7.4    Prices. Prices for all Licensor Goods shall be determined by Licensor.
Licensor shall set each price to cover Licensor costs for the Licensor Goods and
profit plus taxes, duties, shipping costs, any insurance incurred by Licensor,
and any extra costs directly related to such purchase, including customary
overhead. Shipping costs will include freight, handling, packing, loading,
unloading, drayage, port, harbor, brokerage, freight forwarding and all other
costs, charges, fees, and payments of any kind relating to the shipment of the
Licensor Goods. Prices shall be on a "free carrier" ("FCA") or "free on board"
("FOB") Licensor's distribution center basis, as defined in Incoterms 2000, but
shall also include costs prepaid by Licensor (e.g., prepaid airfreight,
refrigerated freight and the like).

7.5    Risk of Loss. Title to and all risk of loss of Licensor Goods shall pass
to Licensee when such Licensor Goods are delivered to and accepted by the common
carrier at the port of discharge or at the carrier's warehouse designated by
Licensee. All costs thereafter, including shipping costs (as described in 7.4
above), insurance, duties, taxes, brokerage, etc., shall be borne by Licensee.

7.6    Shipment. At Licensee's request, Licensor will arrange shipment by common
carrier of the Licensor Goods for Licensee at Licensee's risk and expense. Any
carrier selected by Licensor is not an agent of Licensor, and Licensor does not
assume any risk of loss associated with the actions of such carrier.

7.7    Storage. Licensor may for any reason and in its discretion store, at its
premises or elsewhere, Licensor Goods ordered by Licensee and incur reasonable
storage charges which shall be at Licensee's expense.

7.8    Importation. Licensee shall be solely responsible for compliance with any
and all legal, regulatory and governmental requirements in the PRC, and shall
obtain all governmental approvals, relating in any way to importation of the
Licensor Goods.

7.9    Resale. All Licensor Goods purchased by Licensee from Licensor shall be
used solely for resale in the Territory Outlets or otherwise in connection with
the Merchandise Business System. Licensee shall not export any Licensor Goods
from the PRC.

                                      18
<PAGE>

8.     PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

8.1    Filings. Licensor shall have the exclusive right to file and maintain, or
to cause to be filed and maintained, in each instance at its sole discretion,
any and all trademark and other registrations required to protect PriceSmart
Intellectual Property in the PRC. Licensee shall cooperate with Licensor in such
filings.

8.2    Applications. All applications, registrations, renewals and extensions
relating to PriceSmart Intellectual Property shall be in Licensor's name, or the
name of such other party as Licensor deems appropriate, and shall be made at
Licensor's sole cost and expense.

8.3    Assistance. At Licensor's request, Licensee shall execute all such
documents, and supply Licensor with any documents, samples or other materials,
as are reasonably necessary or expedient to aid Licensor in preparing,
obtaining, filing, recording or maintaining any such application, registration,
renewal or extension, and the costs of Licensee's assistance under this Section
8.3 shall be borne by Licensee.

8.4    Ownership. Licensee acknowledges that, as between it and Licensor, the
computer software systems, the Source Codes referenced in Section 3.1 of this
Agreement and all other PriceSmart Intellectual Property are owned by Licensor,
and Licensee will not challenge any right, title and interest of Licensor to any
of them. Licensee shall not in any manner represent that it has ownership of any
PriceSmart Intellectual Property. Any use by Licensee of PriceSmart Intellectual
Property shall inure to the benefit of Licensor. Licensee shall not register or
attempt to register any item of PriceSmart Intellectual Property or any similar
trade name or trademark under the laws of any jurisdiction. Licensee shall not
at any time do or cause to be done any act or thing in any way impairing or
tending to impair any part of Licensor's right, title and interest in any item
of PriceSmart Intellectual Property, whether or not the same are registered in
the PRC or in any other jurisdiction.

8.5    Notwithstanding any other provision of this Agreement, Licensee will not
directly or indirectly use any PriceSmart Intellectual Property acquired from
Licensor in connection with the ownership and operation of the Territory Outlets
to establish, own or operate a business of any kind in any geographical area
other than the Merchandise Business System in the Territory or to assist or
advise in any manner any other Person with respect to the ownership or operation
of a business of any kind in any geographical area.

8.6    Third Party Infringement

                                      19
<PAGE>

(a)    In the event that Licensee discovers that any other person or entity is
       infringing or is making or has made any use of any portion of the
       computer software systems or any PriceSmart Intellectual Property,
       Licensee shall promptly notify Licensor of such use and shall cooperate
       fully with Licensor's efforts to enforce its rights against such user.

(b)    Licensor, at its discretion, or if requested by Licensee and after giving
       reasonable consideration to such request, shall promptly decide whether
       or not to institute any legal action against any alleged infringer of
       PriceSmart's' Intellectual Property or the computer software systems in
       the People's Republic of China (an INFRINGER).

(c)    Licensee shall, if requested by Licensor, and at Licensor's expense, be a
       co-plaintiff, assign its right to Licensor, or take such reasonable and
       necessary steps to allow Licensor to bring such legal actions and enforce
       the legal rights of both parties.

(d)    Whether or not Licensee is requested by Licensor to join any such action,
       Licensee shall cooperate fully with Licensor in any legal action taken by
       Licensor.

(e)    Licensee shall not take action on behalf of PriceSmart Intellectual
       Property against an infringer without Licensor's prior written consent.

8.7    Third Party Infringement Claims. Each party hereto shall promptly notify
the other party in writing of any legal proceeding instituted, or written claim
or demand asserted, by any third party, of which such party becomes aware, with
respect to the infringement of any patent, copyright, trademark or other
intellectual or commercial property right, or misappropriation of any trade
secret or act of unfair competition, which is alleged to result from the use of
any of the computer software systems or the PriceSmart Intellectual Property in
the PRC (a THIRD PARTY CLAIM).

9.     INDEMNITIES

9.1    Indemnity and Hold Harmless. Licensee hereby indemnifies Licensor, its
Affiliates, officers, directors, shareholders, employees and representatives
(each, a LICENSOR INDEMNIFIED PARTY) against, and releases and holds each
Licensor Indemnified Party harmless from, any and all claims, costs, losses,
damages, liabilities and expenses incurred by such party, including, without
limitation, settlement costs and reasonable attorneys' fees and disbursements
(LICENSOR LIABILITY), provided Licensee does not, and shall not be obligated to,
indemnify any

                                      20
<PAGE>

Licensor Indemnified Party against, release or hold any Licensor Indemnified
Party harmless from, any Licensor Liability if such liability arises as a result
of the willful misconduct, reckless action, gross negligence or breach of this
Agreement by or attributable to Licensor or any such Licensor Indemnified Party.
Licensor shall notify Licensee in writing of any claim or threatened claim of
Licensor Liability within seven (7) days of receiving notice of such claim.
Licensor agrees to cooperate in good faith and to use its best efforts to assist
Licensee in the defense or prosecution of any action, proceeding or claim that
relates to any Licensor Liability.

9.2    Infringement Indemnity. Licensor hereby indemnifies Licensee, its
Affiliates, officers, directors, shareholders, employees and representatives
(each, a LICENSEE INDEMNIFIED PARTY) against, and releases and holds each
Licensee Indemnified Party harmless from, any and all claims, costs, losses,
damages, liabilities and expenses incurred by such party, including, without
limitation, settlement costs and reasonable attorneys' fees and disbursements
(LICENSEE LIABILITY), arising out of or relating to the infringement of any
patent, trademark right or any other Intellectual Property right, copyright of
any third party caused by Licensee's use of the PriceSmart Intellectual
Property, except any claim of infringement resulting from (i) any modification
or alteration of the PriceSmart Intellectual Property made by Licensee or (ii)
the use of the PriceSmart Intellectual Property in a manner not contemplated by
this Agreement. Licensee shall notify Licensor in writing of any claim or
threatened claim of infringement within seven (7) days of receiving notice of
such claim. Licensor shall solely control and defend or settle, at its
discretion, any claim or suit for which Licensee may seek indemnification
hereunder. Licensor may effect a settlement of any such claim by (1) acquiring
for Licensee's benefit a license or other rights for the prior use of any such
infringing property, and, at Licensor's sole discretion, either (2) acquiring
for Licensee's benefit a license or other rights for the continued use of the
infringing property, or (3) rendering any such property non-infringing with no
substantial loss of functional capability, or (4) replacing any such infringing
property with non-infringing property of substantially the same functional
capability. Licensee agrees to cooperate in good faith and to use its best
efforts to assist Licensor in the defense or prosecution of any action,
proceeding or claim that Licensee's use of the PriceSmart Intellectual Property
infringes any patent, trademark right or any other intellectual property right,
copyright of any third party.

9.3    Survival. The indemnity obligations in this Section 9 shall survive
expiration or termination of this Agreement for any reason.

                                      21
<PAGE>

10.    CONFIDENTIAL INFORMATION AND NON-COMPETITION.

10.1   Confidentiality. In addition to and not in lieu of its other obligations
under this Agreement, during the term of the Agreement and for five (5) Years
thereafter, Licensee and its Affiliates shall maintain in strict confidence all
information it has obtained or shall obtain from Licensor or its Affiliates,
pursuant to this Agreement or otherwise, relating to the business, operations,
properties, assets, products, condition (financial or otherwise), liabilities,
employee relations, customers, suppliers, prospects, technology, or trade
secrets of Licensor and its Affiliates (LICENSOR CONFIDENTIAL INFORMATION);
except to the extent such information (i) is in the public domain through no act
or omission of Licensee, (ii) is required to be disclosed by law, or (iii) is
independently learned by Licensee outside of this relationship. Licensee agrees
to cause its employees, agents or representatives who may have access to such
Licensor Confidential Information to enter into an appropriate written
confidentiality and proprietary rights agreement, in the form attached hereto as
Exhibit G or in another form acceptable to Licensor and Licensee, prior to
disclosing any Licensor Confidential Information to such employees, agents or
representatives. Licensor shall be a third party beneficiary of such agreements.
Licensee shall use its best efforts to protect the Licensor Confidential
Information, and shall not use the Licensor Confidential Information for its own
benefit or the benefit of any other person or entity, except as may be
specifically permitted in the Agreement.

10.2   Key Employees. At the request of Licensor, Licensee shall identify all
directors, and officers and all other management personnel of Licensee ("Key
Employees").

10.3   Non-Competition. In order to preserve for the benefit of Licensor the
value of Licensor Confidential Information, Licensee agrees that neither it, its
Affiliates nor its Key Employees shall engage in, be employed by, consult for or
invest in a business anywhere in the PRC which is similar to or with the
Merchandise Business System, including, among other things, warehouse stores and
hypermarkets, during the term of this Agreement. Notwithstanding the foregoing,
Licensee may develop and operate complimentary businesses that would: both (i)
add value to the Territory Outlets and their members; and (ii) not compete with
the business of the Territory Outlets. It shall be the obligation of Licensee,
no later than ninety (90) days following the date of this Agreement, to procure
from all Affiliates and Key Employees their written agreement to abide by this
covenant in the form attached hereto as Exhibit H or in another form acceptable
to Licensor and Licensee, and Licensor shall be a third party beneficiary of
each such written agreement. If Licensor terminates this Agreement early because

                                      22
<PAGE>

Licensee has failed to comply with its material obligations under this Section
10.3, the parties to this Agreement agree that all rights and obligations under
this Agreement shall cease (except such items as survive termination of this
Agreement as set forth in Section 12.3(e)) and Licensee shall have no further
rights to use the Merchandise Business System and shall immediately cease to do
so. Notwithstanding the foregoing, after such termination by the Licensor,
Licensee may continue to operate its then-existing stores in a manner similar to
the Merchandise Business System, provided that Licensee shall continue to pay
the Annual Royalty pursuant to Sections 5.1-5.6 hereof; and provided further
that Licensee shall not operate its then-existing stores under a name which is
confusingly similar to the then-authorized PriceSmart trademark.

10.4   Injunctive Relief. In the event of a breach or threatened breach of this
Section 10, the parties agree that money damages, alone, would be an inadequate
remedy, and that Licensor may apply for and obtain injunctive and other
equitable relief without necessity of bond or other security, to prevent or
remedy such breach.

11.    TERM; TERMINATION

Unless terminated earlier pursuant to the terms of this Agreement, this
Agreement shall have an initial term consisting of ten (10) Years commencing on
the effective date as referred to in Section 14.6 of this Agreement (the INITIAL
TERM). The term shall automatically extend, subject to the requirements of the
then-applicable PRC laws and regulations, for a period of ten (10) Years, unless
either party notifies the other in writing at least ninety (90) days prior to
the termination of the Initial Term that it desires to terminate this Agreement.

12.    TERMINATION

12.1   Termination of Agreement; Termination by Licensee or Licensor. This
Agreement (i) may be terminated pursuant to Sections 5.9, 10.3, or 17 of this
Agreement; or (ii) may be terminated upon written notice, immediately, by
Licensee or Licensor if any of the following occur:

(a)    A receiver is appointed for the other party or its property;

(b)    The other party becomes insolvent or unable to pay its debts as they
       mature in the ordinary course of business or makes an assignment for the
       benefit of creditors;

(c)    Any proceedings are commenced against the other party under any
       bankruptcy, insolvency or debtor relief law and such

                                      23
<PAGE>

       proceedings are not vacated or set aside within sixty (60) days from the
       date of commencement thereof;

(d)    The other party materially breaches or fails to perform any obligation or
       covenant in this Agreement and fails to cure such breach or failure
       within thirty (30) days following notice thereof by the party; provided,
       that if such breach or failure cannot be cured within such thirty (30)
       day period, then the other party shall not be deemed to be in breach
       hereunder if it has commenced a cure within such thirty (30) day period
       and the other party diligently completes such cure as soon as possible,
       and within a sixty (60) day period;

(e)    The other party materially breaches or fails to perform any obligation or
       covenant in this Agreement for the third time during any twelve (12)
       month period; or

(f)    Any other agreement between Licensor and Licensee relating directly to
       this Agreement, including but not limited to the PRC Trademark License
       Agreement, is terminated due to a breach by the either party of such
       agreement.

12.2   Termination by Licensor. This Agreement may be terminated upon written
notice, effective immediately, by Licensor if either of the following occur:

(a)    There shall occur, in a single transaction or series of transactions, any
       sale or other disposition of all or substantially all of the assets, or
       more than fifty percent (50%) of the capital stock, of Licensee, or any
       other act that transfers direct or indirect control of Licensee; or

(b)    Licensor exercises its option to terminate under Section 5.9, 10.3 and
       17.

12.3   Effect of Termination. Subject to the other provisions of this
Section 12, and of Sections 5.9, 10.3 and 17 of this Agreement, upon termination
or expiration of this Agreement for any reason:

(a)    The license referred to in Section 2.1, the rights of access referred to
       in Section 3.3 and the services referred to in Sections 4 and 7 shall
       terminate forthwith and automatically. The foregoing notwithstanding, (i)
       if Licensor terminates this Agreement without cause by ninety (90) day
       notice under Section 11, Licensee shall be deemed to retain a perpetual,
       royalty-free license to use the then-authorized servicemark on its
       then-existing Territory Outlets, subject to the applicable terms of this
       Agreement

                                      24
<PAGE>

       (including Licensee's compliance with the policies, procedures and
       quality standards as set forth in Exhibit F), and (ii) if this Agreement
       is terminated by Licensor pursuant to Sections 12.1 or 12.2, Licensee
       shall retain a non-exclusive license to use the then-authorized
       servicemark on its then-existing Territory Outlets for ninety (90) days
       after the date of termination, subject to the applicable terms of this
       Agreement (including Licensee's compliance with the policies, procedures
       and quality standards as set forth in Exhibit F);

(b)    Each party shall return to the other all proprietary and confidential
       information obtained from such other party in connection with this
       Agreement;

(c)    Each party shall forthwith pay to the other all amounts due hereunder;

(d)    Licensee shall otherwise cease forthwith to use any Licensor Trademarks
       and other PriceSmart Intellectual Property and shall return all
       materials, written or otherwise, delivered by Licensor to Licensee in
       connection with this Agreement; and

(e)    All obligations of the parties hereunder shall terminate prospectively
       forthwith (other than those set forth in Sections 6.6, 6.7, 6.8, 7.9, 8,
       9, 10 and 13, which shall survive indefinitely or as specified therein).

12.4   Legal Remedies. The termination or expiration of this Agreement shall not
affect the legal rights or remedies of either party arising from any material
breach of this Agreement prior to such termination.

13.    ARBITRATION

13.1   All disputes, claims and controversies concerning the validity,
interpretation, performance, termination and/or breach of this Agreement
("Dispute(s)") shall be referred for final resolution to arbitration in
Stockholm, Sweden under the Arbitration Institute of the Stockholm Chamber of
Commerce in accordance its Arbitration Rules then in force (the "Rules"). The
parties hereby agree that arbitration hereunder shall be the parties' exclusive
remedy and that the arbitration decision and award, if any, shall be final,
binding upon, and enforceable against, the parties, and may be confirmed by the
judgement of a court of competent jurisdiction. All proceedings shall be
conducted in the English language. In the event of any conflict between the
Rules and this paragraph, the provisions of this paragraph shall govern.

                                      25
<PAGE>

13.2   The parties agree that the arbitrator(s) may issue any interim or
conservatory measure they deem appropriate pending completion of the
arbitration, including preliminary injunctive relief as provided in Sections 6.8
and 10.4 above, and the parties agree to be bound by any such interim order. In
the event that either party does not comply with any such interim order, the
other party may apply to any court of competent jurisdiction to enforce such
award and the non-complying party shall be liable for all costs (including
attorney's fees) thereby incurred.

13.3   The prevailing party in any dispute settlement proceeding shall be
awarded its reasonable attorneys' fees against the non-prevailing party or
parties.

14.    GENERAL PROVISIONS

14.1   Relationship of Licensee and Licensor.

Neither Licensee nor Licensor shall be deemed to be an agent or representative
of the other; both acknowledge that the relationship between them shall be and
at all times remain one of an independent contractor. The relationship between
Licensee and Licensor shall not be construed to place them in the position of
partners or joint ventures. Except as otherwise provided herein, neither party
shall have the right or authority to assume, create or enlarge any obligations
or commitment on behalf of the other party and shall not represent itself as
having the authority to bind the other party in any manner.

14.2   Assignment. Except as expressly provided herein, neither party shall
assign, delegate or otherwise transfer any of its rights or obligations under
this Agreement without the prior written consent of the other party; provided,
that Licensor may assign, delegate or otherwise transfer any of its rights or
obligations under this Agreement to an Affiliate, and/or in conjunction with a
Transaction, without Licensee's prior written consent.

14.3   Amendments. Amendments to or modifications of this Agreement may be made
only by mutual agreement of the parties in writing and shall be subject to
whatever approvals of the appropriate authorities as are required by applicable
law.

14.4   No Waiver. The failure of either party to insist upon the strict
observance and performance of the terms, provisions or conditions of this
Agreement shall not be deemed a waiver of other obligations hereunder, nor shall
it be considered a future or continuing waiver of the same terms, provisions or
conditions.

                                      26
<PAGE>

14.5   Notice. All notices and other communications under the Agreement shall be
in writing, shall be delivered by facsimile transmission, air courier service,
in person or by registered or certified mail with return receipt requested, and
shall be deemed to have been duly given on the date of any receipt or record
maintained by the service or person making delivery. Delivery shall be to the
address set forth below or such other address or facsimile number as may
hereafter be furnished in writing by either party to the other. The current
address for each party is set forth below the signatures, hereinbelow.

14.6   Effectiveness of Agreement. This Agreement shall be effective as of the
date it is executed by all of the parties to this Agreement. In the event any
provision, or portion thereof, of this Agreement is otherwise held by a court
having proper jurisdiction to be for any reason unenforceable or invalid, the
remaining provisions, or portions thereof, of this Agreement shall continue to
exist and shall remain in full force and effect.

14.7   Entire Agreement. This Agreement shall constitute the entire agreement
between the Parties relating to the supply of technology by Licensor to Licensee
(not including matters related to the licensing of Licensor Trademarks) and all
previous agreements relating to the direct or indirect supply of technology by
Licensor to Licensee and all rights and obligations under any such previous
agreements are null and void (subject only to the last sentence of Section 5.1
of this Agreement).

14.8   Applicable Law. This Agreement shall be interpreted in accordance with,
and all questions concerning the validity, interpretation, performance or breach
of this Agreement shall be governed by the laws of Hong Kong.

14.9   Language. This Agreement is executed in English and Chinese versions; in
the event of discrepancy the English version shall prevail.

15.    RESTRICTION ON TRANSFERS

15.1   Licensee shall not directly or indirectly transfer, sell, assign, pledge
or otherwise encumber ("Transfer") any of its shares to (i) any person or entity
which has been the subject of bankruptcy proceedings or insolvency during the
prior five (5) Years, (ii) any person or entity with a criminal record, or (iii)
any of Wal-Mart Stores Inc., Target Stores, Kmart Corporation, Costco Companies,
Inc., The Home Depot, Inc. and Office Depot, Inc. and each of their respective
Affiliates. This provision shall cease to apply in the event that Licensee
becomes a publicly traded company

15.2   [Intentionally deleted]

                                      27
<PAGE>

15.3   Any transfer or issuance in violation of this Agreement shall be deemed
to be a material breach hereof.

16.    [INTENTIONALLY DELETED]

17.    CHANGE OF CONTROL OF LICENSOR

In the event Licensor enters into a Transaction with another entity, then: (i)
at the sole discretion of Licensor or such other entity this Agreement, and all
rights and obligations of the parties under this Agreement, shall terminate
immediately upon notice of such termination by Licensor or such other entity to
Licensee, excepting only as follows:

(a)    If this Agreement is so terminated then, at Licensee's sole discretion,
       and provided that Licensee pays in advance to such other entity an annual
       fee of US$116,960, Licensee may notify Licensor and such other entity of
       Licensee's election to retain throughout the remaining term of this
       Agreement (calculated as if no such termination had occurred) the
       exclusive right to utilize the "PriceSmart" name on its existing and
       future Territory Outlets in the Territory. Such notice and payment by
       Licensee is to be delivered within fifteen calendar days of Licensee's
       receipt of the aforementioned notice of termination. In such event: (i)
       the applicable provisions of this Agreement relating to such right to use
       this "PriceSmart" name shall remain in effect; but (ii) Licensee shall
       not retain any other right or rights under this Agreement; and (iii) such
       right to utilize the "PriceSmart" name shall be terminable by Licensor or
       by said other entity in the event Licensee fails to comply with the
       policies, procedures and quality standards set forth in Exhibit F.

(b)    At the expiration of such remaining term, and provided that Licensee is,
       and remains, in compliance with the aforementioned applicable provisions
       of this Agreement, Licensee shall be entitled to retain a perpetual,
       royalty-free license to use the "PriceSmart" name on its then existing
       and future Territory Outlets in the Territory; provided, however, that
       such right to utilize the "PriceSmart" name shall be terminable by
       Licensor or by said other entity in the event Licensee fails to comply
       with the policies, procedures and quality standards set forth in Exhibit
       F.

(c)    In the event the circumstances referenced in clause (a) of this Section
       17 occur, then Licensee and such other entity shall promptly prepare an
       Amendment to this Agreement, memorializing the new relationship between
       Licensee and such

                                      28
<PAGE>

       other entity, as described in clauses (a) and (b) of this Section 17 of
       this Agreement.

IN WITNESS WHEREOF, the parties, having full power and authority to enter into
this Agreement, have executed this Agreement on February 28, 2001:

LICENSEE                           NOVONT HOLDINGS CO., LTD.

                                   By
                                       ----------------------------------
                                             (Print Name and Title)

                                   Xuhai Building, Room 601
                                   No. 86 Haidian Road,
                                   Haidian District,
                                   Beijing, PRC
                                   Fax Number:
                                               ----------------------

                                      29
<PAGE>

LICENSOR:                          PRICESMART, INC.

------------------------           By
                                      --------------------------------------
                                              (Print Name and Title)

                                   4649 Morena Blvd.
                                   San Diego, CA. 92117
                                   Fax Number: (619)581-4707

US LICENSEE                        NOVONT, INC., DBA TIMETONE
                                   INTERNATIONAL GROUP

                                   BY:
                                      --------------------------------------
                                              (Print Name and Title)

                                   444 South Flower Street
                                   Los Angeles, California 90071
                                   Fax Number:
                                               ----------------------

IMPORT AGENT:                      CHENG CHENG IMPORT-EXPORT CO., LTD.

                                   BY:
                                      --------------------------------------
                                              (Print Name and Title)

                                   No. 18 Xueqing Road,
                                   Haidian District
                                   Beijing, PRC
                                   Fax Number:
                                               ----------------------

                                      30
<PAGE>

                                    EXHIBIT A

             AGENCY AGREEMENT BETWEEN NOVONT HOLDINGS CO., LTD. AND

                       CHENG CHENG IMPORT-EXPORT CO., LTD.

                                      31
<PAGE>

                                    EXHIBIT B

                                    TERRITORY

                             [Intentionally deleted]

                                      32
<PAGE>

                                    EXHIBIT C

                             J.D. EDWARDS AGREEMENT

                                      33
<PAGE>

                                    EXHIBIT D

                           FORM OF GROSS SALES REPORT

GROSS SALES REPORT
(RMB)
<TABLE>
<CAPTION>
                          -------------------------------------------------------------
SALES:                    LOCATION 1  LOCATION 2   LOCATION 3   LOCATION 4     TOTAL
                          =============================================================
<S>                       <C>         <C>          <C>          <C>            <C>
Product Sales

Membership Sales

Other Sales

Less: Value Added Tax

                          -------------------------------------------------------------
            Gross Sales:
                          -------------------------------------------------------------
</TABLE>

                                      34
<PAGE>

                                    EXHIBIT E

                            TERRITORY OUTLET OPENINGS

SCHEDULE FOR OPENING TERRITORY OUTLETS:

<TABLE>
<CAPTION>
----------------------------------------------------------------------
YEAR                NUMBER OF NEW    TOTAL NUMBER     DATE MUST BE
                    STORES           OF STORES        OPENED BY:
----------------------------------------------------------------------
<S>                 <C>              <C>              <C>
2001                5                10               1 April 2002
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2002                3                13               1 April 2003
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2003                4                17               1 April 2004
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</TABLE>

                                      35
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                                    EXHIBIT F

               CURRENT POLICIES, PROCEDURES AND QUALITY STANDARDS

                                      36
<PAGE>

                      PRICESMART, INC. POLICIES, PROCEDURES

                              AND QUALITY STANDARDS

INTRODUCTION

Licensees are responsible for upholding PriceSmart standards of operation and
complying with all applicable laws. This must be done in the context of properly
managing people, merchandise, financials and facility. The following applies to
the management of all departments of Licensee.

EVALUATION STANDARDS

PEOPLE

1.   Employee Relations

a.     Treating Employees Fairly and Justly - this must be one of the most basic
       philosophies of the Licensee. Treating employees fairly means: paying
       fair wages to permit employees to live a decent life; providing proper
       benefits health care, pension, vacation, sick leave and bonus
       opportunity; timely and thoughtful employee evaluations to improve
       employee performance and morale, fair disciplinary actions, avoidance of
       favoritism, low turnover rate, and opportunity to be promoted.

b.     Playing by the Rules - it is expected that the Licensee will adhere to
       the letter and spirit of any agreed to Union Agreement or Company
       Employee Handbook.

c.     Employee Morale - Happy, dedicated employees are the key to successful
       results. Employees are happy when they are treated fairly, trained
       properly, well informed and welcomed as part of the team. The Licensee
       has the ultimate responsibility for employee morale. All managers must be
       the champions of his or .her employees and show strong leadership
       characteristics. Deserving employees must receive positive feedback for a
       job well done.

d.     Management Development - The Licensee is expected to have qualified
       people in all staff positions and to develop staff personnel and managers
       for the company. The keys to management development are: good hiring,
       teaching, evaluating and giving periodic status reports regarding people
       available for promotion and transfer to meet the needs of all parts of
       the business and future growth.

2.  Member Relations

We are in business to serve our members. The standards we set for serving our
members and how well we achieve those standards are directly related to the
success of our business.

a.     Check-Stand Service - the basic rule at the check-stands is one member at
       the register and no more than three waiting in line. Members must be
       checked out quickly, accurately and courteously. The manager and the
       staff must always be alert and attentive to giving the right service at
       the front-end.

b.     Membership Service - the first impression of a new member must be a good
       one. The manager must assure prompt and courteous service. Nonqualified
       prospective members must be assisted to join, or turned over to a manager
       to sponsor, if needed.

c.     Sales Service - Managers must have sufficient well-trained sales people
       in the selling and service departments.

                                      37
<PAGE>

d.     Entrance and Exit Service - the first and last impressions must be good
       ones. These employees must understand their jobs, greet the members, and
       thank them as they leave.

e.     Complaints - the manager must teach staff and employees to handle
       complaints courteously and attentively, and to seek assistance from
       senior staff when needed.

f.     Following the Rules - The Licensee and staff must observe company rules
       and all international, state and local laws.

3.  Membership

a.     Sign Ups - Membership is the foundation of our business. Members are
       customers who fuel our sales. Membership criteria should be set to
       attract the type of customers we want. Then the goal must be to sign up
       as many members as possible.

b.     Membership Income - Membership fees should be viewed as a segment of
       gross margin. The fee policy needs to be set to achieve the lowest
       possible gross margin on merchandise by using the fee to compensate for
       the lower margin.

c.     Renewal Follow Up - Non-renewed membership is lost sales and income.
       Renewal must be maximized; a replacement for a non-renewed member is more
       expensive than renewing a current member.

d.     Additional Card -Extra cards equate to additional members shopping and
       number of cardholders. Cards per membership must be maximized.

e.     Goal Setting and Strategy Development - Marketing programs influence the
       number of cardholders, shopping frequency and sales. Membership goals
       should be set to maximize the member base and a marketing strategy
       developed to accomplish these goals.

4.  Safety

Provide a safe working and shopping environment. Monitor working conditions and
habits of employees to minimize accidents and expense.

a.     Emergency Procedures - The Licensee needs to be sure that all staff and
       employees are familiar with emergency plans and ready to handle
       robberies, fire or other major problems.

b.     Hold regular Safety Meetings and produce written minutes. Warehouse
       Manager to take immediate corrective action to cure unsafe conditions.

c.     Public Liability - Ensure building and warehouse parking lot is free of
       any unsafe condition to minimize losses.

d.     Avoid serious accidents through good teaching and vigilance.

MERCHANDISE

1.  Merchandising

a.     The policy of the Licensee must be to sell first quality name brand and
       private label merchandise, stored and displayed in a clean, attractive
       manner. The merchandise must meet all governmental requirements.

b.     Wholesaling - The Licensee's business includes a wholesale business
       catering to the needs of small businesses. Product selection, packaging
       and pricing will reflect appropriate merchandising for these small
       businesses.

                                      38
<PAGE>

c.     Pricing - The philosophy of the Licensee should be to save members as
       much money as possible, consistent with providing a fair return on
       corporate investment. At all times, the Licensee is responsible to reduce
       the price of merchandise by buying better, distributing more efficiently
       and reducing operating expenses to continue to add value to Membership.

2.  Inventory Management

a.     The Licensee will purchase inventory to maintain adequate in-stock
       position while accelerating inventory turnover.

b.     Food Service - Food service (food courts) are a basic feature of our
       business. Food will be handled in a healthful manner and the area will be
       maintained in a clean condition.

c.     Excitement - Merchandising is partly entertainment. Good merchandising
       requires creativity and change in merchandising presentation, and in
       keeping with seasonal trends.

d.     6 Rights - The 6 Rights of merchandising must be applied to achieve the
       highest standards possible.

            -    The Right Merchandise, in the Right Place, at the Right Time,
                 in the Right Quantity, in the Right Condition, at the Right
                 Price.

e.     Communications - Warehouse locations, local buying group and local
       Central must provide quality communication to each other to improve the
       merchandise program.

f.     Protection of Merchandise - this includes careful handling to minimize
       markdowns and proper systems and controls to achieve an annualized
       shrinkage result of .8% of sales or better.

g.     Business Margins - Margins must be set and consistently reviewed so
       pricing is always competitive and provides Members with value. There must
       be a low price perception in the market about PriceSmart. Pricing
       umbrella should be known in all categories.

h.     Protection of Cash - Minimize cash short, NSF check write-offs and losses
       from robberies.

FINANCIALS

1.     Financial Standards

a.     Financial statements must be produced on a regular basis for local
       management to review and react in a timely manner.

b.     Payment - all invoices to be paid on time with proper control on
       discrepancies.

c.     Insurance - Maintain proper insurance coverage to protect assets of
       company.

d.     Planning - annual capital and operating budgets should be completed in a
       timely and accurate manner.

FACILITY

1.     Construction and Facilities

a.     Quality - Commercial grade facility. Duty worthy for 25-year life
       expectancy as operating warehouse style store.

b.     Appearance - Simplistic design and strong appearance representing no
       frills, basic warehouse look.

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<PAGE>

c.     Interior - Ease of access to the entrance and exit. Proper orientation to
       allow shoppers good visibility to merchandise, adequate travel paths,
       focus and directed shopping pattern. Good lighting levels and reflective
       surfaces allowing the merchandise to be presented in its best form to
       maximize sales potential.

d.     Slab. Structure and Roof - Critical areas of Operations built to
       established and successfully executed means and methods.

e.     Product Refrigeration - Installation and operation of product
       refrigeration systems that present the product well, hold proper
       temperatures for quality integrity, and offer superior energy
       efficiencies.

f.     Facility Equipment - Facility equipment that has been successfully
       utilized in this application. Time and duty tested components
       specifically developed for the warehouse store industry.

g.     Construction - Employ trustworthy competent contractors, experienced in
       building for the retailing industry. Contractors understanding the
       quality, schedule, and Operational interface required for timely and cost
       effective completion of the project.

h.     Care of Facility and Equipment - it is the Licensee's responsibility to
       provide regular maintenance and care to maintain equipment facility in
       good working in order, to decrease downtime, to avoid costly repairs and
       to provide high standard fixtures and equipment for employees and
       members. Facility to be maintained in a clean, orderly fashion.

i.     Repairs and Replacement - Repairs or replacement must be accomplished as
       needed and promptly.

j.     Additional Fixtures/Equipment - must be planned for and purchased.

k.     Safety - All facilities shall be constructed, maintained, and operated so
       as to provide a safe environment for all employees and members.

EVALUATION METHODS

Audit Reports - Twice yearly audits of warehouse locations and Central
operations will be conducted by PriceSmart San Diego Management and written
review provided to local management. The local manager's timely response to
audit reports and appropriate correction to problems will be a key part of the
performance evaluation.

                                      40
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                                    EXHIBIT G

                  EMPLOYEE'S CONFIDENTIAL INFORMATION AGREEMENT

                                      41
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                                    EXHIBIT H

          KEY EMPLOYEE'S CONFIDENTIALITY AND NON-COMPETITION AGREEMENT
                                  ("AGREEMENT")

       In consideration of my employment or continued employment by
________________ ________________ (hereinafter "the company") and in
consideration of the salary, wages or other compensation to be paid for my
services during such employment, I hereby agree as follows:

1.     As used in this Agreement the term "confidential information" means
       information relating to the business, operations, properties, assets,
       products, condition (financial or otherwise), liabilities, employee
       relations, customers, suppliers, prospects, technology, or trade secrets
       of PriceSmart, Inc. or its affiliates; except to the extent such
       information (i) is in the public domain through no act or omission by me;
       (ii) is required to be disclosed by law, or (iii) is independently
       learned by me outside of my employment by the company.

2.     During the term of my employment by the company, I will not, except as my
       duties to the company may require, disclose any confidential information
       to others.

3.     After the term of my employment by the company, I will not disclose any
       confidential information to others unless such disclosure first has been
       authorized in writing by the company and by PriceSmart, Inc.

4.     On termination of my employment by the company, or at any time it may so
       request, I will promptly deliver to the company all copies of any
       memoranda, notes, records, reports, manuals, catalogs, price lists or
       other documents relating to or containing any confidential information
       which I possess or may have under my control.

5.     I am familiar with the Merchandise Business System licensed by PriceSmart
       to Novont Holdings Co., Ltd. under the agreement between them dated
       February 28, 2001. I agree that during the term of my employment by the
       company and for three years thereafter, I shall not engage in, be
       employed by, consult for or invest in a business which is similar to or

                                      42
<PAGE>

       competitive with the Merchandise Business System, including among other
       things, discount stores, warehouse stores, and hypermarkets; except,
       however, that I may engage in, be employed by, consult for or invest in
       businesses that would: both (i) add value to the Territory Outlets and
       their members; and (ii) not compete with the business of Territory
       Outlets.

6.     This Agreement shall be binding upon and inure to the benefit of the
       parties hereto, their successors and assigns, and to the benefit of
       PriceSmart, Inc. who may enforce it as a "third party beneficiary."

7.     Damages are an inadequate remedy for a breach of this Agreement. I,
       therefore, agree that should a breach or threatened breach of this
       Agreement occur, the company and/or PriceSmart, Inc. may without
       prejudice to any other remedies which they may have, immediately obtain
       and enforce injunctive relief prohibiting me from violating this
       Agreement.

8.     This is the only agreement between these parties on this subject matter.

9.     This Agreement can be modified or rescinded only by a writing signed by
       both parties and by PriceSmart, Inc.

       I have read the foregoing, agree thereto, and hereby acknowledge receipt
of a copy of this Agreement.

                                            ---------------------------
                                            Signature of Employee

WITNESS:

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

By
  ------------------------

Title                           Date
      --------------------           ------------

                                      43<PAGE>

Exhibit 10.5 (a)

NUMERO SESENTA Y UNO. (61).- En la ciudad de Guatemala, el diecinueve de
diciembre del ano dos mil, Ante mi: GUILLERMO ANDRES CASTILLO RUIZ, Notario,
comparece por una parte el senor JUAN ANTONIO MIRO LLORT, de cuarenta y seis
anos de edad, casado, banquero, salvadoreno, de este domicilio, quien interviene
en su calidad de Vice-Presidente y Mandatario General con Representacion de
CITIBANK, N.A., calidades que acredita con los siguientes documentos,
respectivamente: I) primer testimonio de la escritura publica numero noventa y
tres (93), autorizada en esta ciudad el nueve de diciembre de mil novecientos
noventa y ocho por el Notario Fernando Quezada Toruno, que contiene Acta de
Protocolizacion de Acta Notarial autorizada por la Notaria Karin Johanna Herman
Zachrisson el nueve de julio de mil novecientos noventa y ocho en la ciudad de
Nueva York, Estado de Nueva York, Estados Unidos de America, y que contiene su
nombramiento como Vice-Presidente. El documento quedo debidamente inscrito en el
Registro Mercantil General de la Republica al numero ciento cincuenta mil
doscientos veintinueve (150,229) folio trescientos noventa y ocho (398) del
libro setenta y cinco (75) de Auxiliares de Comercio con fecha veintiuno de
diciembre de mil novecientos noventa y ocho; y, II) primer testimonio de la
escritura publica numero cuarenta y nueve (49) autorizada en esta ciudad por la
Notaria Annabella Bruni de Bermudez, el dia cuatro de septiembre de mil
novecientos noventa y seis, la cual contiene Protocolizacion del Mandato General
con Representacion otorgado por CITIBANK, N.A. a favor del senor Juan Antonio
Miro Llort, documento que quedo inscrito en la Direccion del Archivo General de
Protocolos al numero cuatrocientos dieciseis mil ochocientos treinta y siete
(416,837), el dia diecisiete de septiembre de mil novecientos noventa y seis; el
mismo documento quedo inscrito en el Registro Mercantil General de la Republica,
al numero veintiun mil quinientos diecisiete (21,517), folio trescientos
veinticuatro (324) del libro quince (15) de Mandatos, con fecha diecinueve de
septiembre de mil novecientos noventa y seis. Por la otra parte, comparece el
senor MICHAEL EDWARD ASCOLI GIRON, quien dice ser de cuarenta y siete anos de
edad, casado, guatemalteco, ejecutivo, de este domicilio, quien se identifica
con cedula de vecindad numero de orden A guion uno y de registro quinientos
catorce mil novecientos ochenta y

<PAGE>

cinco (A-1 514,985), extendida por el Alcalde Municipal de Guatemala, quien
actua en sus calidades de: a) GERENTE GENERAL y como tal en representacion de la
entidad PRICESMART (GUATEMALA), SOCIEDAD ANONIMA, lo cual acredita con acta
notarial de su nombramiento autorizada en esta ciudad el veinticinco de
septiembre de mil novecientos noventa y ocho por la Notario Beatriz Beltranena
Wer, la cual esta debidamente inscrita en el Registro Mercantil General de la
Republica al numero ciento cuarenta y cuatro mil cuatrocientos dos (144,402),
folio ciento veintiuno (121) del libro setenta y cinco (75) de Auxiliares de
Comercio. Asimismo, manifiesta que esta debidamente facultado para el
otorgamiento del presente contrato, lo cual acredita con Acta Notarial
autorizada en esta ciudad el quince de diciembre del ano dos mil, por la Notario
Liliana Yolanda Sanchez Mack, la cual transcribe la autorizacion del Consejo de
Administracion de PRICESMART (GUATEMALA), SOCIEDAD ANONIMA; y b) MANDATARIO
GENERAL con Representacion de la entidad GRUPO SOLID, S.A. (constituida con
iniciales), calidad que acredita con el primer testimonio de la escritura
publica numero trece (13), autorizada en la ciudad de Guatemala el catorce de
febrero de mil novecientos noventa y cuatro por el Notario Mario Rodolfo Virula
Boy, que Protocoliza el Acta Notarial de fecha veintiuno de enero de mil
novecientos noventa y cuatro, autorizada en la ciudad de Panama, Capital de la
Republica de Panama, por la Notario Publico Decimo, Noemi Moreno Alba, la cual
contiene Mandato General con Representacion otorgado por GRUPO SOLID, S.A.
(constituida con iniciales), a favor del senor Michael Edward Ascoli Giron,
documento que quedo inscrito en la Direccion del Archivo General de Protocolos
al numero cuatrocientos treinta y ocho mil setecientos quince (438,715), el dia
veintiseis de febrero de mil novecientos noventa y siete; el mismo documento
quedo inscrito en el Registro Mercantil General de la Republica, al numero
numero veintidos mil trescientos cuatro (22,304) folio cuatrocientos quince
(415) del libro quince (15) de Mandatos, con fecha diez de marzo de mil
novecientos noventa y siete. DOY FE: de conocer con anterioridad al primer
compareciente, no asi al segundo quien se identifica la cedula de vecindad
arriba identificada, que las representaciones que se ejercen son suficientes de
conformidad con la ley y a mi juicio para el otorgamiento del presente contrato;
que de acuerdo con declaracion que hacen los senores Juan Antonio Miro Llort y
Michael Edward Ascoli Giron, dichas representaciones estan

<PAGE>

vigentes y sus nombramientos y mandatos no han sufrido restriccion ni
modificacion que les impida o condicione el otorgamiento de esta escritura; que
tengo a la vista los documentos que las acreditan; y que asegurandome todos
encontrarse en el libre ejercicio de sus derechos civiles, me manifiestan que
por el presente acto otorgan el CONTRATO DE CREDITO Y CONSTITUCION GARANTIA
PRENDARIA SOBRE EMPRESA MERCANTIL conforme las clausulas siguientes: PRIMERA:
ANTECEDENTES. Declaran los senores Juan Antonio Miro Llort y Michael Edward
Ascoli Giron que CITIBANK, N.A. a traves de su FACILIDAD BANCARIA INTERNACIONAL
("INTERNATIONAL BANKING FACILITY" o "IBF") que constituye un juego de libros de
contabilidad utilizados por Citibank, N.A. de conformidad con la Regulacion D
emitida por la Junta de Gobernadores del Sistema de la Reserva Federal de los
Estados Unidos de America, entidad que en lo sucesivo de la presente escritura
tambien se podra denominar "EL BANCO", otorga un credito a PRICESMART
(GUATEMALA), SOCIEDAD ANONIMA, entidad que en esta escritura tambien podra ser
identificada como LA DEUDORA, por la cantidad de UN MILLON QUINIENTOS MIL
DOLARES DE LOS ESTADOS UNIDOS DE AMERICA ($1,500,000.00), que sera desembolsada
y entregada a la Deudora al dia siguiente de la fecha en que se presente al
Banco el testimonio de esta escritura en que conste la razon de inscripcion de
las garantias prendarias puesta por el Registrador Mercantil General de la
Republica en la forma indicada mas adelante, asi como certificacion de ese mismo
Registro de las Empresas Mercantiles pignoradas y que las prendas a que se
refiere este instrumento ocupan el primer lugar. La fecha de presentacion
conjunta de esos documentos sera la que conste en el sello de recepcion del
Banco. SEGUNDA: ESTIPULACIONES DEL CREDITO. El credito referido en la clausula
precedente se sujeta entre otras, a las siguientes estipulaciones: a) Destino:
La deudora destinara el credito a refinanciar deudas con los accionistas. b)
Plazo: El plazo del credito es de UN (1) ANO contado a partir del dia de hoy,
por lo que vencera el dieciocho de diciembre del ano dos mil uno. Si dicho dia
fuere inhabil, el plazo concluira el dia bancario habil inmediato anterior. c)
Forma de Pago: La Deudora pagara el credito de la siguiente forma: TRES (3)
PAGOS TRIMESTRALES Y CONSECUTIVOS DE CIENTO DOCE MIL QUINIENTOS DOLARES DE LOS
ESTADOS UNIDOS DE AMERICA ($112,500.00) CADA UNO, EN LOS MESES DE

<PAGE>

MARZO, JUNIO, Y SEPTIEMBRE TODOS DEL ANO DOS MIL UNO; Y EL SALDO AL VENCIMIENTO
DE LA PRESENTE OBLICACION. Tales montos no incluyen los intereses
correspondientes al periodo de tiempo transcurrido, y los pagos deberan
efectuarse el ultimo dia habil del mes en que corresponda hacer el pago de
capital, de conformidad con lo establecido en esta clausula. Durante el plazo
del presente contrato, no le es permitido a la Deudora efectuar pagos
anticipados de capital durante los Periodos de Interes (como se define mas
adelante), pactados. Si a pesar de esta prohibicion, la deudora manifiesta su
deseo de realizar pago anticipado de capital, queda obligada a pagar un recargo
que el banco le imponga por dicho pago anticipado. d) INTERESES : Sobre la
cantidad adeudada o sus saldos se pagara intereses a razon de una tasa igual a
la tasa ofrecida para depositos igual o lo mas cercano a NOVENTA (90) DIAS
calendario, en Dolares de los Estados Unidos de America en el Mercado
Interbancario de Londres, Inglaterra, (TASA LIBO), a las once horas de la
manana, hora de Londres, el segundo dia habil anterior al inicio del periodo de
intereses al cual se aplicara la tasa, incrementado en TRES PUNTO SETENTA Y
CINCO puntos porcentuales (3.75%), segun aparece en la pagina tres mil
setecientos cincuenta (3750) de Telerate. Si la Tasa Libo no puede ser
determinada de acuerdo con lo arriba previsto, Tasa Libo significara una tasa
anual igual a la tasa indicada en la pagina "LIBOR" de la Pantalla Reuters (o
cualquier otra pagina que sustituya la mencionada pagina de tiempo en tiempo) a
partir de las once horas antes del meridiano (11:00 A.M). (hora de Londres) el
segundo dia habil anterior al inicio del periodo de intereses al cual se
aplicara la tasa, para depositos en Dolares de los Estados Unidos igual o mas
cercano a la duracion de dicho periodo de interes. En el caso de que una o mas
tasas de interes aparezcan en la pagina tres mil setecientos cincuenta (3750) o
"LIBOR", como sea el caso, la Tasa Libo sera el promedio (redondeado al multiplo
entero superior mas cercano al 1/16 del 1% anual, si dicho promedio no es un
multiplo) de dichas tasas ofertadas. Para efectos de esta clausula, `Periodo de
interes' significara el periodo que comienza el diecinueve de diciembre del ano
dos mil y termina tres meses despues, es decir el diecinueve de marzo del ano
dos mil uno, y asi sucesivamente, y que termina cada periodo sucesivo de tres
meses, comenzando en la fecha de vencimiento del periodo de interes inmediato
anterior. Los intereses seran pagaderos en forma MENSUAL el ultimo dia habil de
cada uno de los meses indicados. La variacion en la

<PAGE>

tasa de interes para cada periodo de intereses surtira efectos automaticamente
sin necesidad de ningun requisito formal, aunque, para efectos puramente
informativos, se le debera enviar a la deudora una comunicacion escrita a la
direccion que senala en este documento. Los intereses seran calculados sobre la
base de un ano de trescientos sesenta (360) dias y cobrados por los dias
efectivamente transcurridos en el periodo en el que tales intereses son
pagaderos. e) Intereses Moratorios: En caso que la parte deudora incurra en mora
en cualesquiera de las obligaciones que le corresponden por virtud del credito,
pagara sobre los saldos deudores, intereses moratorios a razon de una tasa de
interes igual a la tasa LIBO definida en el inciso anterior, vigente en la fecha
efectiva de pago, incrementada en SIETE PUNTO CINCUENTA puntos porcentuales
(7.50%), que se calculara a partir del primer dia en que se haya incurrido en
mora hasta el dia en que el Banco reciba a su entera satisfaccion las cantidades
adeudadas, y sin perjuicio del derecho de este a dar por vencido anticipadamente
el plazo del contrato y demandar judicialmente el pago de la obligacion. f)
Disposiciones comunes a la forma de pago. El capital e intereses se pagaran en
Dolares de los Estados Unidos de America por tratarse de una obligacion de pago
desde Guatemala hacia el extranjero, sin necesidad de cobro o requerimiento
alguno en la cuenta del Banco que este indique a la Deudora, en sus oficinas
ubicadas en la Ciudad de Nueva York, Estado de Nueva York, Estados Unidos de
America, que la Deudora ya conoce, o en las oficinas de la sucursal en Guatemala
en el dia que corresponda hacer el pago conforme al credito. Los pagos de
capital e intereses en todos los casos, se realizaran en o antes de las doce
horas, hora de la ciudad de Nueva York, Estado de Nueva York de los Estados
Unidos de America. En el evento que una fecha de vencimiento fuere un dia
bancario inhabil, la obligacion debera cumplirse el primer dia habil bancario
anterior y los intereses se calcularan y pagaran hasta tal fecha. Por dia
inhabil bancario se entiende un dia en que los bancos deben dejar de atender al
publico en el Estado de Nueva York, Estados Unidos de America y en la Ciudad de
Guatemala, Republica de Guatemala. Todo pago que deba hacerse de conformidad con
el credito se hara libre de toda y cualquier retencion o deduccion de tributos,
comisiones de cambio, cargos, gastos o cualquier concepto, presentes o futuros,
que impliquen una disminucion de la cantidad que el Banco debe recibir de
conformidad con dicho credito. En consecuencia, la deudora pagara a quien
corresponda todas las obligaciones frente a

<PAGE>

terceros que afecten o incidan, actualmente o en el futuro, en las cantidades
adeudadas al Banco de acuerdo con el presente contrato de credito. En el
eventual caso que por disposicion de la ley estuviere prohibido a la deudora
hacer los pagos adeudados al Banco sin efectuar deducciones o retenciones o
pagar cualquier otra cantidad o reembolsar al Banco las cantidades pagadas por
dichos conceptos, se aumentaran los pagos por intereses adeudados a partir de la
fecha de tal pago en la cantidad necesaria para que, una vez cumplidas las
obligaciones por los conceptos indicados, el Banco reciba en forma integra las
cantidades establecidas en el presente contrato de credito. La deudora tambien
debera proporcionar al Banco, en el plazo arriba indicado, copia autentica de
las constancias de haber negociado las divisas derivadas de este prestamo por
medio del sistema bancario nacional o entidades autorizadas por la Junta
Monetaria de Guatemala para operar el cambio de divisas. En el caso que la
deudora no cumpla con alguno de los pagos citados y que como consecuencia el
Banco se encuentre obligado a efectuar los mismos, aquella reembolsara al Banco
dentro de los tres (3) dias habiles siguientes de haber sido avisada que el
Banco ha efectuado uno, varios o todos esos pagos, las cantidades que por dichos
conceptos haya pagado, mas intereses a razon de una tasa igual a la pactada para
el importe del credito, y en su caso, los gastos y comisiones causados. TERCERA:
DE LA PROPIEDAD DE LOS BIENES QUE SE DARAN EN PRENDA: El senor MICHAEL EDWARD
ASCOLI GIRON, en representacion de la entidad PRICESMART (GUATEMALA), SOCIEDAD
ANONIMA, declara bajo juramento y advertido por el Infrascrito Notario de las
penas relativas al delito de perjurio, que su representada, PRICESMART
(GUATEMALA), SOCIEDAD ANONIMA, es la unica propietaria de las siguientes
Empresas Mercantiles: a) PRICESMART PLAZA, ubicada en la sexta avenida cero
guion setenta y nueve de la zona cuatro, ciudad de Guatemala (6ta Avenida 0-79,
zona 4) registrada bajo el numero doscientos treinta y cinco mil cuatrocientos
noventa y cuatro (235,494), folio doscientos treinta y seis (236), libro ciento
noventa y siete (197) de Empresas Mercantiles, expediente numero dieciocho mil
ciento noventa y tres guion dos mil (18,193-2000); y b) PRICESMART (GUATEMALA),
SOCIEDAD ANONIMA, ubicada en la veintiuna avenida siete guion noventa de la zona
once, ciudad de Guatemala (21 Avenida 7-90, zona 11) registrada bajo el numero
ciento noventa mil doscientos vientisiete A (190,227 A), folio noventa (90),

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libro ciento cincuenta y cinco (155) de Empresas Mercantiles, expediente numero
veintiocho mil novecientos treinta y cuatro guion mil novecientos noventa y ocho
(28,934-1998 ). Manifiesta el senor MICHAEL EDWARD ASCOLI GIRON,en la calidad
con que actua: a) Que acredita la propiedad de las Empresas Mercantiles
propiedad de PRICESMART (GUATEMALA), SOCIEDAD ANONIMA, mediante la presentacion
al Infrascrito Notario, de los documentos consistentes en Certificaciones
emitidas por el Registro Mercantil General de la Republica de fechas veintinueve
de noviembre y cinco de diciembre del ano en curso, referentes a las Empresas
Mercantiles descritas e identificadas en los incisos "a" y "b" de esta clausula,
en las que se establece que la propietaria de estas es PRICESMART (GUATEMALA),
SOCIEDAD ANONIMA; b) Que todos los impuestos de cualquier clase que existen
actualmente y que estan vigentes, que los cargos e impuestos contra todas y cada
una de las Empresas Mercantiles exigidos por cualquier autoridad gubernamental
de la Republica de Guatemala o cualquier autoridad politica o fiscal, han sido
completa y finalmente pagados o provisionados, especialmente el Impuesto a las
Empresas Mercantiles y Agropecuarias; c) Que las Empresas Mercantiles propiedad
de su representada, PRICESMART (GUATEMALA), SOCIEDAD ANONIMA, se encuentran
libres y sobre ellas no pesan gravamenes, anotaciones, arrendamientos,
impedimentos, embargos, cargas, derechos en contra, prenda, uso o usufructo o
limitaciones que pudieran afectar derechos de terceros, excepto la prenda
constituida sobre inventario variable no perecedero consistente en mercaderia,
que garantiza el ciento veinticinco por ciento del margen del prestamo con Banco
Uno, por el monto de dos millones de dolares de los Estados Unidos de America.
Agrega el senor MICHAEL EDWARD ASCOLI GIRON que las declaraciones hechas
corresponden a los bienes pignorados. El Notario le advierte las
responsabilidades civiles y penales en que incurre en caso que las anteriores
declaraciones no esten apegadas a la verdad. CUARTA: CONSTITUCION DE PRENDA DE
EMPRESAS MERCANTILES. a) El senor MICHAEL EDWARD ASCOLI GIRON, manifiesta que su
representada, PRICESMART (GUATEMALA), SOCIEDAD ANONIMA constituye a favor de
CITIBANK, N.A., en garantia del pago de la totalidad de las obligaciones aqui
contraidas por la entidad PRICESMART (GUATEMALA), SOCIEDAD ANONIMA, incluyendo
capital, intereses, costas, gastos

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de cobranza y cualesquiera otras obligaciones exigibles en virtud de la ley y de
este contrato PRIMERA, UNICA Y ESPECIAL PRENDA sobre las Empresas Mercantiles
propiedad de su representada, descritas e identificadas en los incisos "a" y "b"
de la clausula tercera inmediata anterior de este instrumento, asi como sobre
todos los frutos y rendimientos que produzcan dichas Empresas Mercantiles.
Ademas, declara en nombre de su representada, que en la prenda se incluyen todos
los elementos de las Empresas Mercantiles, los inventarios, todos los activos y
todas las cuentas por cobrar ordinarias y extraordinarias de PRICESMART
(GUATEMALA), SOCIEDAD ANONIMA, (especialmente cuentas por cobrar derivadas de
titulos de credito) que de hecho y por derecho le corresponde a PRICESMART
(GUATEMALA), SOCIEDAD ANONIMA, asi como a sus citadas Empresas Mercantiles;
agrega que, de conformidad con el articulo seiscientos cincuenta y cinco (655)
del Codigo de Comercio, se entiende por Empresa Mercantil el conjunto de
trabajo, de elementos materiales y de valores incorporeos coordinados, para
ofrecer al publico con proposito de lucro o de manera sistematica, bienes o
servicios. Asimismo, la prenda de Empresa Mercantil incluye todos los elementos
que establece el articulo seiscientos cincuenta y siete (657) del Codigo de
Comercio. Continua manifestando MICHAEL EDWARD ASCOLI GIRON, en la calidad con
que actua, que su representada, PRICESMART (GUATEMALA), SOCIEDAD ANONIMA ha
pactado expresamente con el Citibank, N.A., que la prenda de Empresas
Mercantiles, tambien comprende las patentes de invencion, los secretos de
fabricacion y del negocio, las exclusivas y las concesiones, asi como todos los
registros mantenidos en relacion con los BIENES PIGNORADOS, incluyendo
cualquiera y todos los diarios, libros, registros de operacion, ventas y
mantenimiento y otra informacion relacionada con estos, asi como todos los
derechos, titulos e intereses de PRICESMART (GUATEMALA), SOCIEDAD ANONIMA con
los bienes pignorados, todas las autorizaciones, permisos, ordenanzas,
consentimientos, privilegios, inmunidades, licencias y derechos de toda clase,
descripcion y caracteres, opciones, registro, inspecciones, documentos que
actualmente o en el futuro sean propiedad o controlados por PRICESMART
(GUATEMALA), SOCIEDAD ANONIMA para uso en conexion con la vigencia, el uso,
operacion y mantenimiento de los BIENES PIGNORADOS y todo lo demas anteriormente
indicado. Queda entendido entre las partes del presente

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contrato que la deudora no tendra limitacion o impedimento para la compra y
venta de productos asi como para todas las operaciones que sean del giro
ordinario de las Empresas Mercantiles; b) Saldo Insoluto. Las partes convienen
que MICHAEL EDWARD ASCOLI GIRON en representacion de GRUPO SOLID, S.A.
(constituida con iniciales), y Pricemart (Guatemala), Sociedad Anonima,
responderan con todos sus bienes presentes y futuros por cualquier saldo
insoluto que pudiere dejar la prenda, de forma mancomunada y solidaria; c)
Deposito. Los contratantes designan como depositario de los bienes pignorados a
PRICESMART (GUATEMALA), SOCIEDAD ANONIMA, quien a traves de su representante
legal, Michael Edward Ascoli Giron, manifiesta que esta enterado de las
obligaciones inherentes a ese cargo, y que lo acepta desempenar gratuitamente.
El depositario declara que esta en efectiva y total posesion de las Empresas
Mercantiles pignoradas. Asimismo, expresa que se compromete a permitir que las
personas o entidades designadas por el Banco puedan en cualquier tiempo
inspeccionar el estado de las mismas y si se encontraren sufriendo dano o
deterioro o no se les este prestando debida atencion y mantenimiento o se
encuentren en estado de abandono, todo a juicio del Banco, este podra acudir a
un Juez para solicitar que le substituya inmediatamente en el cargo de
depositario, solicitud que se resolvera de plano, sin formar articulo, previa y
unica audiencia al interesado. En caso de ejecucion, el depositario podra ser
removido por el juez mediante simple solicitud en tal sentido por parte del
Banco. En este caso, se nombrara como depositario a la persona que este
proponga. El depositario que se designe a solicitud del Banco, estara exento de
la prestacion de cualquier fianza o garantia para el desempeno de su cargo. d)
La Deudora queda obligada a responder por saneamiento por eviccion y por vicios
ocultos de los bienes afectados con la prenda. e) Seguro. La Deudora se obliga a
contratar y mantener vigente durante el plazo del contrato y sus prorrogas, y en
todo caso hasta el pago efectivo del capital, intereses, comisiones, recargos,
gastos y cualquier otra cantidad debida de conformidad con este contrato, un
seguro con cualquiera de las aseguradoras autorizadas para operar en el pais -
que previamente haya sido aceptada expresamente por el Banco - por las
cantidades y contra los riesgos que puedan afectar al bien o los bienes
pignorados que sean acostumbrados, incluyendo caso fortuito, fuerza mayor y dano
malicioso, extremos que, en caso de discrepancia entre las partes, seran

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determinados por el Banco. El seguro debera contratarse a favor del Banco como
beneficiario del seguro y debera cubrir, como minimo el importe total del
credito e intereses o el saldo adeudado de tiempo en tiempo. La Deudora debera
proporcionar al Banco copia autentica de la poliza de seguro con todos sus
endosos y documentos conexos en los que conste el monto deducible y demas
condiciones del seguro. Ademas, debera enviar fotocopia autentica del recibo del
pago de la prima y si esta fuere pagada en forma fraccionada, se obliga a enviar
al Banco copia de los recibos dentro de los cinco (5) dias habiles siguientes a
la fecha de pago fijada en la poliza. Tambien se compromete a enviar al Banco
una constancia autentica suscrita por el representante legal de la aseguradora
en el sentido de que en caso de siniestro, la indemnizacion sera pagada
directamente al Banco, una vez se hayan deducido los pagos por tributos,
comisiones y cualquier otro concepto que este legalmente obligada a cancelar la
aseguradora antes de pagar la indemnizacion. La Deudora debera proporcionar al
Banco los anteriores documentos dentro de los tres dias habiles siguientes de
firmado este contrato y, si correspondiera hacer una renovacion o prorroga o
cualquier modificacion y/o endoso del seguro durante el plazo del contrato, la
entrega se hara dentro de los quince (15) dias habiles siguientes de la
renovacion, prorroga, modificacion y/o endoso. Si a juicio del Banco el estimado
del remanente de la eventual indemnizacion fuere insuficiente para cubrir el
valor comercial de los bienes asegurados en caso de siniestro, por cualquier
razon, la deudora contratara conforme a las instrucciones del Banco un seguro
adicional por la diferencia o garantizara la misma constituyendo fianza u otra
garantia a satisfaccion del Banco. En todo caso, si el Banco considerara por
cualquier motivo o circunstancia que el seguro es insuficiente, o en caso de que
la Deudora no contrate y/o mantenga vigente el seguro en la forma indicada, el
Banco tendra el derecho, aunque no la obligacion, de solicitar y contratar el
seguro por cuenta de la Deudora, quien por este acto autoriza dicha solicitud y
contratacion. f) En tal virtud los otorgantes solicitan por este medio al Senor
Registrador Mercantil General de la Republica, se sirva inscribir y anotar a
favor de CITIBANK, N.A., la prenda de Empresas Mercantiles, de acuerdo al
testimonio de la presente escritura, en las inscripciones registrales
correspondientes de PRICESMART (GUATEMALA), SOCIEDAD ANONIMA, y que se haga
constar en el testimonio respectivo las prendas que por este acto se
constituyen, asi como que estas

<PAGE>

ocupan el primer lugar. g) Por su parte, el senor Juan Antonio Miro Llort, en
nombre y representacion de CITIBANK, N.A. acepta las prendas que por este acto
se constituye a su favor. QUINTA: OTRAS ESTIPULACIONES. a) Se conviene que
durante la vigencia del credito y hasta la total cancelacion de las cantidades
adeudadas al Banco, la propietaria de los bienes no podra, sin contar con la
autorizacion previa y escrita de este, enajenar, arrendar, gravar, constituir
usufructo, ceder a cualquier titulo o gravar de nuevo las Empresas Mercantiles
pignoradas, bajo sancion de nulidad de los actos o contratos que se celebren y
sin perjuicio del derecho del Banco para dar por terminado anticipadamente el
plazo del credito. b) Queda expresamente convenido que la prenda por este acto
constituida permanecera vigente y surtira todos sus efectos hasta la efectiva
cancelacion de la totalidad del credito y sus prorrogas. c) Mantenimiento de la
Prenda. La Deudora se obliga a mantener las Empresas Mercantiles pignoradas en
perfecto estado de operacion, conservacion y mantenimiento imponiendo igual
obligaciones a sus empleados y dependientes. La Deudora comunicara al Banco, de
inmediato, es decir, en el dia en que ocurra o el primer dia habil siguiente si
ocurriese en un dia inhabil, la existencia de cualquier riesgo o menoscabo de
cualquiera de los BIENES PIGNORADOS. SEXTA: DECLARACIONES Y OBLIGACIONES. Sin
perjuicio de las demas declaraciones y obligaciones contraidas conforme a este
contrato de credito, el representante legal de la deudora declara y asegura por
este acto: a) Que su representada es una sociedad mercantil debidamente
organizada, existente y en buen estado de solvencia de conformidad con las leyes
de la Republica de Guatemala y que se obliga a conservar y mantener durante toda
la vigencia del credito su existencia legal y personalidad juridica, asi como
todos sus derechos, incluyendo privilegios, nombres comerciales, y a conducir
sus negocios en una forma ordenada, eficiente y regular; b) que esa sociedad
tiene capacidad para ser duena de sus propiedades y para llevar a cabo sus
negocios en la forma que actualmente los lleva; c) que la ejecucion y
cumplimiento de este contrato no contraviene ningun precepto legal o contractual
que constituya un caso de incumplimiento de conformidad con otro contrato o
instrumento en que su representada sea parte, o por obligacion que esta hubiere
contraido, ni que le este prohibido por otra razon; d) Que los estados
financieros de su representada para el ano fiscal que termino el treinta de
junio del ano dos mil fueron preparados de conformidad

<PAGE>

con los principios de contabilidad generalmente aceptados y aplicados en una
base consistente para el periodo especificado, y presentan razonablemente la
situacion financiera de la deudora a la fecha de este contrato; e) Sin perjuicio
de lo anterior, la Deudora se obliga a proporcionar al Banco sus estados
financieros en cualquier tiempo que este lo solicite. En todo caso, se obliga a
proporcionar al Banco dentro de los ciento veinte (120) dias calendario
siguientes al cierre fiscal de cada uno de los anos durante el plazo del credito
o sus prorrogas y hasta la cancelacion total del credito, sus estados
financieros para el ano correspondiente, incluyendo el balance general, estado
de perdidas y ganancias, estados de cambios de capital de los accionistas y
estado de cambios en la situacion financiera de la Deudora. Los estados
financieros referidos correspondientes a cada ano fiscal se presentaran
auditados por una firma de auditores y contadores publicos independientes de
reconocido prestigio y aceptable para el Banco, y seran preparados de
conformidad con los principios de contabilidad generalmente aceptados y
calculados en una base consistente para los periodos especificados y presentaran
razonablemente la situacion financiera de la Deudora a la fecha de los mismos.
Si la Deudora fuere requerida por el Banco, debera proporcionar o poner a
disposicion del Banco, a eleccion de este, los libros de actas, libros de
contabilidad y el respaldo documental correspondiente, prestandole toda la
colaboracion necesaria a los expertos que designe el Banco para la debida
comprension de los mismos. De esa cuenta, dichos peritos podran entrevistarse
con personas y funcionarios de la Deudora para que den explicaciones sobre su
situacion financiera; f) La direccion registrada de la deudora es veintiuna
avenida siete guion noventa de la zona once, ciudad de Guatemala, y que esta
direccion corresponde exactamente a la ubicacion en donde se encuentran sus
principales oficinas y sede de actividades; g) Que el contrato contenido en este
instrumento obliga legalmente a la Deudora conforme a cada una de sus clausulas
siendole exigible su cumplimiento; h) Expresa el representante legal de la
Deudora que desde la fecha de los estados financieros y estado patrimonial
presentados al Banco al solicitar el credito en mencion hasta el dia de hoy, no
ha habido cambios materiales adversos en los activos, obligaciones (contingentes
u otras), ni en la situacion financiera o negocios de la Deudora. Esta se obliga
a proporcionar al Banco, dentro de los tres (3) dias habiles siguientes a la
fecha en que tengan conocimiento de un cambio sustancial

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adverso en su situacion financiera, un informe detallado y preciso que contenga,
por lo menos, la naturaleza del cambio, la obligacion u obligaciones que afecten
la situacion o situaciones en mora en que se hubiere incurrido, el tiempo en que
haya estado en mora, las medidas propuestas para remediar esa situacion y demas
informacion relacionada con la situacion financiera adversa; i) La deudora se
obliga a pagar puntualmente todos los impuestos, tasas, arbitrios,
contribuciones o cualquier otro tributo al que estuviere obligada, salvo
aquellos que de buena fe hubiere decidido impugnar, circunstancia que
comunicaran al Banco inmediatamente, o por lo menos un dia antes del vencimiento
del plazo para presentar la impugnacion. Cuando se trate de tributos que graven
los bienes pignorados, y/o el contrato de credito, y con el proposito de
comprobar que los mismos han sido debidamente pagados, la deudora se obliga a
entregar al Banco dentro de los quince dias habiles siguientes de efectuado el
pago, copia autentica de los recibos que acrediten el cumplimiento de dichas
obligaciones. En el caso que la deudora no cumpla con alguno de los pagos
citados en esta literal, autoriza desde ahora al Banco para hacer esos pagos por
cuenta de ella, siempre que el Banco optare por hacerlo. En este evento,
reembolsara al Banco dentro de los tres dias habiles siguientes de haber sido
avisada que el Banco ha efectuado dicho pago, las cantidades que por dichos
conceptos este haya pagado, mas intereses a razon de una tasa igual a la pactada
para el importe del credito, y en su caso, los gastos y comisiones causados; j)
Los bienes pignorados podran ser inspeccionados periodicamente por la persona o
personas que designe el Banco, y en todo caso no menos de dos (2) veces al ano.
La propietaria permitira a tales personas el acceso al lugar y les proporcionara
la colaboracion y auxilio que le sea requerido para efectos de la inspeccion; k)
La deudora mantendra vigentes los contratos y/o relaciones de trabajo o de
servicios con el equipo gerencial actual, pudiendo sustituirlo unicamente con
personal de iguales calidades o mejor calificado que el presente; l) Que no
existe ningun litigio o procedimiento administrativo pendiente ante tribunal o
autoridad o arbitros que pueda afectar en forma negativa o adversa la situacion
financiera de la Deudora, ni la legitimidad, validez o exigibilidad de este
contrato. La deudora informara al Banco en forma inmediata de cualquier asunto
litigioso en que pudiere llegar a ser parte, y al dia siguiente de ser
notificados de toda accion y/o diligencia judicial entablada en su contra.
Tratandose de medidas precautorias, informara al Banco en forma inmediata al
tener

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conocimiento de las mismas. Tambien informara al Banco de cualquier
obligacion contingente que tuviere; m) La Deudora no contraera obligaciones
hipotecarias, prendarias u otras obligaciones de cualquier naturaleza que
conlleven gravamenes o limitaciones sobre sus bienes actuales o los que
adquiera en el futuro, sin el consentimiento previo y escrito del Banco; n)
La Deudora cumplira todas las regulaciones, reglamentos, leyes, ordenes y en
general, con las normas de toda naturaleza emitidas por autoridad competente
que le sean aplicables; o) la Deudora dara pronto aviso en forma escrita al
Banco, a mas tardar el dia siguiente de ocurrido, de cualquier incumplimiento
acompanando una declaracion de la accion propuesta por la Deudora para
remediar el incumplimiento; p) La Deudora no vendera, arrendara o de alguna
forma dispondra de una porcion sustancial de sus activos en cualquier
ejercicio fiscal excepto con el consentimiento previo y escrito del Banco; y
q) Al finalizar el periodo fiscal del ano dos mil uno, LA DEUDORA debe
mantener y reflejar la siguiente situacion financiera: i) Que su Razon de
cobertura de servicio de deuda sea en cualquier momento menor de uno punto
cinco (1.5) a uno (1.00). Para el proposito del calculo de "Razon de
Cobertura de Servicio de Deuda" debera calcularse anualmente a partir del
ultimo dia de cada ano fiscal de la Deudora para el periodo de un ano
finalizando en la fecha de determinacion de este y debera definirse, como las
ganancias de la Deudora antes de los intereses, tributos, depreciacion y
amortizacion (EBITDA), sobre la suma de los pagos de intereses, capital, y la
porcion corriente de la deuda de largo plazo (aquellos pagos de deuda que se
van a hacer durante el periodo siguiente a aquel para el cual se llevo a cabo
dicha determinacion, todo determinado de acuerdo con los principios contables
generalmente aceptados y aplicados de forma consistente; ii) Que su Razon de
Endeudamiento o Apalancamiento sea en cualquier momento no mayor de tres
punto ocho (3.80) a uno (1.00). Para el proposito de su calculo, debera
definirse la "Razon de Endeudamiento", como el total de pasivos de la Deudora
(incluyendo las obligaciones debidas a la casa matriz, PriceSmart Inc. y
cualquier otra empresa relacionada a la casa matriz), sobre las ganancias de
la Deudora antes de los intereses, tributos, depreciacion y amortizacion
(EBITDA), todas segun se determina de acuerdo con los principios contables
generalmente aceptados y aplicados de forma consistente; y iii)Que el nivel
maximo del total de deuda de la Deudora, sobre las ganancias de la Deudora
antes de los

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intereses, tributos, depreciacion y amortizacion (EBITDA), no puedan ser
en cualquier momento mayor de dos punto cinco (2.5) a uno (1.00). Para el
proposito de su calculo, debera definirse "Total de deuda" como deuda a los
bancos, deudas a corto y largo plazo, mas cualquier otro monto adeudado a
PriceSmart Inc. y cualquier otra empresa relacionada a la casa matriz. SEPTIMA:
INCUMPLIMIENTO Y TERMINACION PREMATURA: El Banco podra, a su discrecion, dar por
vencido el plazo del contrato en forma prematura y exigir el pago de capital,
intereses, gastos y en su caso, costas judiciales asi como cualquier obligacion
o pago adeudado conforme este contrato, en el evento de suceder cualquiera de
los supuestos siguientes: a) Si la deudora incumple con pagar intereses o
capital, gastos o comisiones al Banco cuando sean debidos o pagaderos, sea a su
vencimiento o en cualquier fecha fijada para su pago; b) Por incumplimiento de
la deudora a cualquiera de las obligaciones que asumio en este contrato de
credito, o de aquellas que conforme a la ley le corresponde asumir; c) Por
incumplimiento de la deudora PRICESMART (GUATEMALA), SOCIEDAD ANONIMA, de
cancelar en su totalidad, el credito bancario otorgado por Banco Uno, Sociedad
Anonima, por la cantidad de hasta dos millones de dolares de los Estados Unidos
de America, en la fecha de su vencimiento, marzo diecinueve del ano dos mil uno;
d) Cuando ocurra un cambio material adverso en la condicion financiera o en los
negocios de la deudora, que a opinion del Banco, afecte su garantia o
incrementare su riesgo; e) Cuando ocurra un cambio material en la situacion
politica, economica, monetaria o de cualquier otra indole en la Republica de
Guatemala que en opinion del Banco, incremente su riesgo; f) Si la deudora fuere
objeto de demanda, embargo, secuestro o intervencion, o si fuese declarada en
quiebra o si promueve concurso voluntario de acreedores o se entabla en su
contra concurso forzoso de acreedores o quiebra; g) Si cualquiera de los bienes
de la deudora, pero especialmente los muebles pignorados, sufre tal depreciacion
o merma que ya no constituyen respaldo suficiente al Banco, salvo que esta
ofrezca y efectivamente constituya una garantia que sea satisfactoria para el
Banco; h) Si la deudora reduce su capital, amortiza o adquiere sus propias
acciones, entra en disolucion, liquidacion, se fusiona por absorcion o por
consolidacion en o con otra persona sin previo conocimiento y aprobacion del
Banco; i) Si la asamblea de accionistas de la deudora acuerda distribuir
dividendos en cada periodo fiscal, ya sea que provengan de las utilidades
corrientes,

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retenidas y/o acumuladas por un monto superior a la cantidad equivalente al
sesenta por ciento (60%) de su ingreso neto anual positivo; j) Si la deudora
enajena una parte sustancial de sus bienes a cualquier otro titulo sin
autorizacion previa del Banco; k) Si la Deudora no cumpliera con el pago de
cualquier otra deuda incluyendo capital, intereses, primas o comisiones o
incumpliera en cualquier otra forma sus obligaciones a su cargo y a favor del
Banco, sea al vencimiento de su plazo natural o en caso de vencimiento
anticipado; l) Si la Deudora incumpliera con el pago de cualquier otra deuda
contraida con terceros a medida que se hagan exigibles, si cesa en el pago de
sus obligaciones o si efectua una cesion general a favor de sus acreedores; m)
Si se dictara alguna sentencia u orden contra la Deudora exigiendo el pago de
mas de la cantidad de UN MILLON DE DOLARES DE LOS ESTADOS UNIDOS DE AMERICA
($1,000,000.00), o su equivalente en otra moneda; n) Si alguna autoridad
gubernamental, judicial o de cualquier otro orden de la Republica de Guatemala
inicia acciones para expropiar, secuestrar, o apoderarse de todos o una parte
sustancial de los bienes de la deudora o de otra manera asume la custodia o
control de sus bienes sea por intervencion o de otra forma y/o restringe, limita
o veda a la Deudora el manejo y facultad de controlar sus negocios; y o) Si la
deudora se fusionara con otra sociedad o si de cualquier otra forma transfiere
las empresas mediante las cuales realiza sus actividades y lleva a cabo sus
negocios. OCTAVA: AUTORIZACION PARA DEBITAR. Si el credito contra la Deudora es
exigible en virtud de cualquier caso previsto como un incumplimiento por este
contrato o por la ley, el Banco podra retener los bienes de la Deudora que se
encuentren en su poder o estuvieren a su disposicion. Asimismo, si llegare a
ocurrir el incumplimiento citado, la Deudora autoriza de manera irrevocable al
Banco para debitar cualesquiera cuentas de depositos que esta mantenga con el
Banco a efecto de extinguir cualquier deuda a su cargo, y hasta por el monto
maximo necesario para extinguir las cantidades adeudadas. NOVENA: CESION. La
deudora acepta y reconoce expresamente que el Banco podra ceder, gravar o
negociar en cualquier forma sus derechos derivados del credito y sobre las
garantias prendarias, sin necesidad de previo ni posterior aviso o
consentimiento de la Deudora, debiendo unicamente notificarle el nombre del
nuevo acreedor y el lugar en que debera efectuar los pagos tanto de capital como
de intereses. La Deudora no podra ceder o transferir los derechos y obligaciones

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que le corresponde de acuerdo con este contrato, ni directa ni indirectamente
sin el previo consentimiento del Banco. DECIMA: RENUNCIAS. Ninguna falta o
retraso del Banco en el ejercicio de cualquier derecho o facultad que le
corresponda conforme a este contrato, producira efectos de una renuncia de los
mismos. Tampoco impedira por ese mismo motivo cualquier otro derecho o futuro
ejercicio de tales derechos o de una facultad, accion, pretension, excepcion ni
recurso. Asimismo no sucedera ese efecto por el parcial ejercicio de ellos. Los
derechos, acciones, pretensiones, excepciones y recursos establecidos en este
contrato no excluyen cualesquiera otros previstos por la ley. DECIMA PRIMERA:
HONORARIOS Y GASTOS. Los honorarios y gastos que se causen con motivo del
presente negocio y de la inscripcion de la prenda en el Registro Mercantil
General de la Republica asi como los judiciales y extrajudiciales relacionados
con su cobro, seran por cuenta de la deudora. DECIMA SEGUNDA: LEY SUSTANTIVA
APLICABLE. Este contrato sera regulado, gobernado e interpretado de conformidad
con las leyes de la Republica de Guatemala. DECIMA TERCERA: EFECTOS PROCESALES.
La Deudora reconoce como titulo ejecutivo perfecto e inobjetable el testimonio
de la presente escritura, renuncia al fuero de su domicilio y se somete
expresamente a la competencia de los tribunales del Departamento de Guatemala,
Republica de Guatemala, que elija el Banco. Asimismo, la Deudora acepta como
liquida, exigible y de plazo vencido la cantidad que el Banco le demande y como
buenas y exactas las cuentas que el Banco le presente, con relacion a este
credito. b) La Deudora exime al Banco de la obligacion de prestar fianza,
garantia o contragarantia para el ejercicio de sus derechos o derivado de una
medida precautoria. c) Para efectos de este contrato, la Deudora fija y senala
como lugar para recibir notificaciones, citaciones, comunicaciones y
correspondencia la direccion indicada en la clausula sexta del presente
instrumento, y se obliga a comunicar por escrito al Banco cualquier cambio que
de ella tuviere en el entendido de que si no lo hace, se consideraran validas y
bien hechas todas las comunicaciones, citaciones y notificaciones que se envien,
practiquen o se hagan en dicha direccion. DECIMA CUARTA: SUSTITUCION DE OTROS
CONVENIOS. Este contrato y cualesquiera otros documentos suscritos como
resultado o en cumplimiento de los mismos, expresan el entendimiento completo de
las partes respecto a los negocios juridicos que han celebrado las partes en
este instrumento. Toda prorroga, modificacion,

<PAGE>

ampliacion, novacion, renuncia de derechos y terminacion debera hacerse con la
autorizacion y aprobacion escrita del Banco. DECIMA QUINTA: DIVISIBILIDAD. Si
cualquier convenio del credito o de este contrato o la aplicacion de los mismos
a cualquier persona, por cualquier circunstancia se considerara invalido, nulo,
ineficaz o por cualquier otro motivo impida que surta sus efectos legales, dicha
invalidez, nulidad, ineficacia o impedimento no afectara ningun otro convenio
que pueda surtir efectos sin el convenio afectado. Para tal fin, los acuerdos,
convenios, derechos y obligaciones contenidos en este contrato de credito seran
divisibles. DECIMA SEXTA: SENTENCIA O AUTO: Si con el proposito de obtener una
sentencia o auto final es necesario convertir los montos adeudados en Dolares de
los Estados Unidos de America a otra moneda de conformidad con este contrato,
las partes convienen que el tipo de cambio a ser utilizado sera aquel conforme
al cual permita al Banco adquirir las divisas adeudadas de conformidad con
procedimientos bancarios normales el dia habil anterior a aquel en que se dicte
sentencia definitiva, o tratandose de la ejecucion en la via de apremio, el dia
habil anterior a aquel en que se dicte el auto que resuelva en definitiva el
proyecto de liquidacion de la deuda y las costas procesales. Sin perjuicio de
que una sentencia o auto sea dictado en moneda que no sea Dolares de los Estados
Unidos de America, la obligacion de la Deudora con respecto a cualquier suma
adeudada al Banco de conformidad con este contrato sera considerada pagada solo
si en el dia habil siguiente al dia en que el Banco haya recibido en esa otra
moneda, algun monto tomado por el tribunal como adeudado bajo el presente
contrato, el Banco puede de acuerdo con los procedimientos bancarios normales,
comprar dolares de los Estados Unidos de America con esa otra moneda que
satisfagan total o parcialmente lo adeudado. Si la deuda fuere satisfecha solo
parcialmente en virtud de que los Dolares de los Estados Unidos de America asi
comprados resultan de menor monto que la suma originalmente adeudada al Banco de
conformidad con este contrato, la Deudora acuerda, como una obligacion diferente
e independientemente de tal sentencia o auto, indemnizar al Banco por la
diferencia que resulte entre los Dolares adquiridos y la cantidad efectivamente
adeudada conforme a este contrato. DECIMA SEPTIMA: ACEPTACION. Los otorgantes,
en la calidad con que actuan, manifiestan la aceptacion a las clausulas y
estipulaciones de este instrumento. Yo, el Notario, DOY FE: a) de todo lo
expuesto; b) que he tenido a la vista

<PAGE>

la documentacion relacionada, y las certificaciones emitidas por el Registro
Mercantil General de la Republica, en que consta que los bienes muebles
pignorados pertenecen a la Deudora; y c) que he leido lo escrito a los
otorgantes, quienes despues de hacerlo personalmente, enterados de su contenido,
objeto, validez, efectos legales y obligacion de registro, ratifican, aceptan y
firman juntamente con el Infrascrito Notario.

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