Document:

Assignment and Assumption Agreement

 Exhibit 10.2 
  
 EXECUTION COPY 
  
 ASSIGNMENT AND ASSUMPTION AGREEMENT 
  
 THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (“Assignment Agreement”) is made this September 15, 2004 between PRICESMART, INC., a company organized
and existing under the laws of the State of Delaware (“PriceSmart”) and INTERNATIONAL FINANCE CORPORATION, an international organization established by Articles of Agreement among its member countries (“IFC”). 
  
 RECITALS: 
  

	A.	Pursuant to the Omnibus Agreement dated June 27, 2002 (the “Omnibus Loan Agreement”), by and among PriceSmart, PSMT Philippines, Inc., a company organized and existing
under the laws of the Philippines (the “PSMT Philippines” and together with PriceSmart, the “Co-Borrowers”) and IFC, IFC has agreed, subject to the terms and conditions thereof, to lend to the Company the sum of twelve million
five hundred thousand Dollars ($12,500,000) of which ten million two hundred thousand Dollars ($10,200,000) have been fully disbursed and remain outstanding (the “2002 Loan”). 

  

	B.	IFC has other existing debt and equity investments in PriceSmart and its affiliates. 

  

	C.	Pursuant to letters, dated June 2, 2004 and July 26, 2004, respectively, PriceSmart and The Price Group, LLC, a company organized and existing under the laws of the State of
California and an affiliate of PriceSmart, have requested IFC to consider restructuring IFC’s investment in, and grant certain waivers and concessions to, PriceSmart and its subsidiaries (including PSMT Philippines) (the
“Restructuring”). 

  

	D.	PriceSmart desires to purchase, and IFC desires to sell, the 2002 Loan as part of the Restructuring. 

  

	E.	It is a condition of the Restructuring that the parties hereto shall have entered into this Agreement. 

  
 NOW, the parties agree: 
  
 1. Effective only upon written confirmation from IFC to PriceSmart that IFC has received from PriceSmart US$ 10,393,785.22 at Citibank N.A.,
111 Wall Street, New York, N.Y. 10043, USA, for credit to account no. 36085579, ABA: 021000089, International Finance Corporation, Washington, D.C., Loan reference number PRJ 11213 PHL, on or before September 15, 2004 in consideration of this
assignment and release and free of any withholding tax or deduction whatsoever: 
  

	 	(i)	IFC hereby ASSIGNS, WITHOUT RECOURSE, REPRESENTATION OR WARRANTY OF ANY KIND (except as stated in paragraph 6 below), to PriceSmart, all of its rights, title and interest in, to and
under the Omnibus Loan Agreement and the 2002 Loan, and all other benefits relating to the 2002 Loan accruing to IFC under the Omnibus Loan Agreement, including all rights to any outstanding principal and accrued but unpaid interest in respect of
the 2002 Loan, and all rights it might have under any security therefor (including any pledges and mortgages); and 

	 	(ii)	PriceSmart hereby accepts such assignment of the Omnibus Loan Agreement. Subject to paragraph 4 below, IFC releases each of the Co-Borrowers from all its obligations under the
Omnibus Loan Agreement. 

  
 2. Subject to IFC’s receipt of
payment as set forth in paragraph 1 hereof, PriceSmart hereby assumes and agrees to pay, perform and discharge all debts, liabilities and obligations of any kind of IFC under the Omnibus Loan Agreement whether now existing or hereafter arising,
known or unknown, absolute or contingent, determined or speculative or otherwise, including without limitation in respect of any and all suits, claims, causes of action, damages or rights that any party to or beneficiary of the Omnibus Loan
Agreement (including their respective successors and assigns) may have had, now has or in the future may have against IFC under, arising out of or in any way relating to the Omnibus Loan Agreement. 
  
 3. Subject to IFC’s receipt of payment as set forth in paragraph 1 hereof, PriceSmart
hereby agrees to indemnify and hold harmless IFC, its officers, directors, agents and employees in their capacity as such, and their respective successors and assigns, from any and all obligations, claims, causes of action, suits, damages or
liabilities of any kind, known or unknown, absolute or contingent, determined or speculative or otherwise, which either of the Co-Borrowers, its successors or assigns may have had, have now or in the future may have against IFC or any such person
under, arising out of or relating in any way to this Assignment and Assumption Agreement. 
  
 4. Subject to IFC’s receipt of payment as set forth in paragraph 1 hereof, each of the parties hereto will execute such further documents, transfers, assignments or assurances as any party may reasonably request,
to give effect to this assignment and assumption and to fully vest in PriceSmart all of the rights relating to the 2002 Loan accruing to IFC under the Omnibus Loan Agreement and will notify the Co-Borrowers of such assignment and assumption in the
form set out in Schedule A. 
  
 5. PriceSmart agrees to pay all charges, costs and
expenses (including stamp duties, taxes or fees of a notary or IFC’s legal counsel) on or in connection with this Assignment and Assumption Agreement. 
  
 6. IFC represents and warrants to PriceSmart that it has not previously assigned its rights to or interests in the 2002 Loan. 
  

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 7. This Assignment Agreement shall be governed by, and shall be construed in accordance with, the laws of the State of
New York, United States of America. 
  

			
	PRICESMART, INC.
		
	By:	 	 /s/ John Heffner

	Name:	 	John Heffner
	Title:	 	Executive V.P./CFO
	
	INTERNATIONAL FINANCE CORPORATION
		
	By:	 	 /s/ Stanley Greig

	Name:	 	 Stanley Greig

	Title:	 	 Manager, Latin America and Caribbean
 Credit and Portfolio Division, Global
 Manufacturing Services Department

  

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 SCHEDULE A 
  

NOTICE OF ASSIGNMENT 
  
 To:
[                        ] 
  
 Reference is made to the Omnibus Agreement dated June 27, 2002 (the “Omnibus Loan Agreement”), by and among PSMT Philippines, Inc., PriceSmart,
Inc. (“PriceSmart”) and International Finance Corporation (“IFC”); 
  
 IFC HEREBY GIVES YOU NOTICE that, by an Assignment and Assumption Agreement dated September 15, 2004 and made between IFC and PriceSmart, IFC has assigned absolutely to PriceSmart (with effect from September 15, 2004)
all its rights to and interests in its Loan (as defined in the Omnibus Loan Agreement) and all other benefits relating to such Loan accruing to IFC under the Omnibus Loan Agreement including all rights they might have under any security therefor
(including any pledges and mortgages). 
  
 Accordingly, you are
now required to recognize PriceSmart, or such person appointed by PriceSmart, as holder of such rights, interests and benefits as have been assigned to it by IFC. 
  
 DATED this 15th day of September, 2004. 
  

			
	INTERNATIONAL FINANCE CORPORATION
		
	By	 	  

	 	 	 Authorized Representative

  

 - 4 -Amended and Restated C Loan Agreement

 Exihibit 10.3 
  
 EXECUTION COPY 
  

 INVESTMENT NUMBER 10296 
  
 Amended and Restated C Loan Agreement 
  
 among 
  
 PRICESMART, INC., 
  
 PSMT CARIBE, INC., 
  
 PSMT TRINIDAD/TOBAGO LIMITED, 
  
 and 
  
 INTERNATIONAL FINANCE CORPORATION 
  
 Dated as of January 26, 2001 
 As Amended and Restated on September 15, 2004 
  

 TABLE OF CONTENTS 
  

					
	 Article or
Section

	 	 Item

	 	Page No.

		
	 ARTICLE I
	 	2
		
	 Definitions
	 	2
			
	 	 	 Section 1.01. Definitions
	 	2
	 	 	 Section 1.02. Interpretation
	 	2
		
	 ARTICLE II
	 	2
		
	 Agreement for the C Loan
	 	2
			
	 	 	 Section 2.01. Amount
	 	2
	 	 	 Section 2.02. Interest
	 	2
	 	 	 Section 2.03. Fees
	 	3
	 	 	 Section 2.04. Disbursement
	 	3
	 	 	 Section 2.05. Repayment
	 	4
	 	 	 Section 2.06. Prepayment
	 	4
	 	 	 Section 2.07. Late Payment Charge
	 	5
	 	 	 Section 2.08. General
	 	5
		
	 ARTICLE III
	 	5
		
	 Miscellaneous
	 	5
			
	 	 	 Section 3.01. Duration
	 	5
	 	 	 Section 3.02. Counterparts
	 	5

 C LOAN AGREEMENT 
  
 AGREEMENT, dated as of January 26, 2001, as AMENDED AND RESTATED on September 15, 2004, among: 
  

	 	(1)	PRICESMART INC., a company organized and existing under the laws of the State of Delaware, U.S.A. (“PriceSmart”); 

  

	 	(2)	PSMT CARIBE, INC., a company organized and existing under the laws of the Territory of the British Virgin Islands (“Caribe”); 

  

	 	(3)	PSMT TRINIDAD/TOBAGO LIMITED, a company organized and existing under the laws of the Republic of Trinidad and Tobago (“PSMT Trinidad and PriceSmart, Caribe and PSMT Trinidad
are collectively referred to herein as the “Co-Borrowers”); and 

  

	 	(4)	INTERNATIONAL FINANCE CORPORATION, an international organization established by Articles of Agreement among its member countries (“IFC”). 

  
 WHEREAS: 
  
 (A) By a Loan Agreement dated January 26, 2001, among the Co-Borrowers and IFC, as amended (the “Loan Agreement”),
IFC has agreed, subject to the terms and conditions thereof, to lend to the Co-Borrowers the sum of up to twenty-two million Dollars ($22,000,000) (the “A Loan”). The Co-Borrowers hereby acknowledge that the A Loan has been fully
disbursed. 
  
 (B) By a C Loan Agreement dated January 26, 2001,
among the Co-Borrowers and IFC, as amended (the “Original C Loan Agreement”), IFC has agreed, subject to the terms and conditions thereof, to lend to the Co-Borrowers the sum of up to ten million Dollars ($10,000,000) (the “C
Loan”). The Co-Borrowers hereby acknowledge that the C Loan has been fully disbursed. 
  
 (C) The Co-Borrowers and IFC desire to amend and restate the Original C Loan Agreement on the terms and conditions of this Agreement. 
  
 NOW THEREFORE, the parties hereto agree as follows: 

 ARTICLE I 
  

Definitions 
  
 Section 1.01. Definitions. Wherever used in this Agreement, unless the context shall otherwise require, terms defined in the Loan Agreement shall
have the respective meanings therein set forth. 
  
 Section 1.02.
Interpretation. (a) In this Agreement, unless the context otherwise requires, words denoting the singular include the plural and vice versa, words denoting persons include corporations and partnerships, and references to a specified Article
or Section shall be construed as a reference to that specified Article or Section of this Agreement. 
  
 (b) In each part of this Agreement, the headings and the Index are inserted for convenience of reference only and shall not be used to define, interpret
or limit any of the provisions of this Agreement. 
  
 ARTICLE II

  
 Agreement for the C Loan 
  
 Section 2.01. Amount. Subject to the terms and conditions of this
Agreement, IFC agrees to lend to the Co-Borrowers and the Co-Borrowers agree jointly and severally to borrow from IFC the C Loan, that is, the amount of up to ten million Dollars ($10,000,000). 
  
 Section 2.02. Interest. (a) The C Loan shall accrue interest
(the “C Loan Interest”) in respect of each Interest Period at a rate per annum which shall be the sum of four per cent (4.0%) per annum and LIBOR, on the Interest Determination Date for such Interest Period for six months (or, in the case
of the first Interest Period, for one month, two months, three months or six months, whichever period is closest to the duration of the relevant Interest Period or, if two periods are equally close to the duration of the relevant Interest Period,
the longer one) (the “C Loan Interest Rate”). 
  

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 (b) The C Loan Interest shall be determined on each Interest Determination Date and shall be paid on each
Interest Payment Date as provided by the terms of the Loan Agreement, mutatis mutandis. 
  
 Section 2.03. Fees. (a) The Co-Borrowers shall pay to IFC in Dollars a front-end fee of one hundred thousand Dollars ($100,000) in respect of the C
Loan to be paid within thirty (30) days after the date of this Agreement (but, in any event, prior to the disbursement of the C Loan); 
  
 (b) The Co-Borrowers shall also pay to IFC a commitment fee of one-half of one per cent ( 1/2%) per annum on that part of the C Loan which from time to time has not been disbursed or cancelled. The commitment fee shall: 
  

	 	(i)	begin to accrue on the date of this Agreement; 

  

	 	(ii)	be pro rated on the basis of a 360-day year for the actual number of days elapsed; and 

  

	 	(iii)	be payable semi-annually, in arrears, on the Interest Payment Dates in each year, the first such payment to be due on March 15, 2001. 

  
 Section 2.04. Disbursement. (a) Subject to Section 5.01 (a)(i), (b),
(c), (d)(i) (other than with respect to the OPIC Loan) through (d)(v), (e), (f) (other than legal opinions relating to the movable and immovable assets in jurisdictions other than El Salvador and the Dominican Republic), (g), (h), (i), (j), (l),
(m), (n) and (o) of the Loan Agreement, the disbursement of the full amount of the C Loan shall be made in one lump sum prior to or simultaneously with the first disbursement of the A Loan, but in no event later than July 26, 2001, at
PriceSmart’s bank account in New York, New York for further credit to the Co-Borrowers’ respective accounts at a bank in the Countries, or any other place acceptable to IFC, or to the credit of the Co-Borrowers’ existing creditors,
all as specified by the Co-Borrowers in the C Loan Disbursement request. 
  
 (b) Notwithstanding any provision in this Agreement, each of PSMT Caribe and PSMT Trinidad irrevocably appoints and designates PriceSmart as its agent for the purpose of receiving any notice or request and further
authorizes PriceSmart to make the request provided in Section 2.04(a) or any other request permitted to be made by the Co-Borrowers under this Agreement, to receive all disbursements to be made hereunder, to sign the receipts provided for in Section
2.04(a), and to take any other action required or permitted to be taken on its behalf under this Agreement. 
  

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 Section 2.05. Repayment. (a) The Co-Borrowers shall repay the C Loan on the following dates and in
the following amounts: 
  

				
	 Date Payment Due

	  	Principal Amount Due

	 March 15, 2005
	  	$	833,333
	 September 15, 2005
	  	 	833,333
	 March 15, 2006
	  	 	833,333
	 September 15, 2006
	  	 	833,333
	 March 15, 2007
	  	 	833,333
	 September 15, 2007
	  	 	833,333
	 March 15, 2008
	  	 	833,333
	 September 15, 2008
	  	 	833,333
	 March 15, 2009
	  	 	833,333
	 September 15, 2009
	  	 	833,333
	 March 15, 2010
	  	 	833,333
	 September 15, 2010
	  	 	833,337
	 	  	$	10,000,000
	 	  	
	

  
 (b) The dates for
repayment of principal of the A Loan are intended to coincide with the Interest Payment Dates. 
  
 (c) Upon each Disbursement, the amount disbursed shall be allocated for repayment on each of the respective dates for repayment of principal set out in the table in Section 2.05(a) in amounts which are pro
rata to the amounts of the respective installments shown opposite those dates in that table (with IFC adjusting those allocations as necessary so as to achieve whole numbers in each case). 
  
 Section 2.06. Prepayment. (a) The C Loan may be prepaid on any
Interest Payment Date on not less than forty-five (45) days’ prior notice to IFC, subject to the following terms and conditions: 
  

	 	(i)	for a partial prepayment, such prepayment is in an amount not less than three million Dollars ($3,000,000); 

  

	 	(ii)	the Co-Borrowers simultaneously pay all accrued interest on the amount of the C Loan to be prepaid together with all other amounts then payable under this Agreement; and

  

 - 4 - 

	 	(iii)	if IFC so requires, the Co-Borrowers deliver to IFC, prior to the date of prepayment, evidence satisfactory to IFC that all governmental approvals necessary in respect of the
prepayment have been obtained. 

  
 Section 2.07.
Late Payment Charge. If the Co-Borrowers fail to make any payment under this Agreement when due, the Co-Borrowers shall pay to IFC a late payment charge determined in accordance with Section 3.04 of the Loan Agreement, mutatis
mutandis, at the rates of (i) two per cent (2%) above the relevant C Loan Interest Rate, in effect from time to time in respect of any amount overdue (other than principal) relating to the C Loan, and (ii) two per cent (2%) on any overdue
amount of principal of the C Loan or, in each case, such higher rate (not to exceed five per cent (5%) above the relevant C Loan Interest Rate in effect from time to time) of default interest as is charged to the Co-Borrowers by other lenders.

  
 Section 2.08. General. (a) Except as otherwise
expressly provided in this Agreement, all the provisions of Sections 3.08, 3.09, 3.10, 3.11(a)(ii) and (b), 3.14 and 3.15 of the Loan Agreement and Articles IV, V (to the extent set forth in Section 2.04 hereof), VI, VII and VIII of the Loan
Agreement shall apply mutatis mutandis to the C Loan as if each reference therein to the A Loan and Loan Agreement is a reference as well to the C Loan and this Agreement, respectively, unless the context otherwise requires;
accordingly, such provisions are incorporated herein by reference and this Agreement shall be construed and interpreted accordingly. 
  
 (b) For the avoidance of doubt, any Event of Default or Potential Event of Default in respect of the A Loan shall constitute an Event of Default or
Potential Event of Default in respect of the C Loan. 
  
 ARTICLE
III 
  
 Miscellaneous 
  
 Section 3.01. Duration. This Agreement shall continue in force until
all monies payable hereunder shall have been fully paid in accordance with the provisions hereof. 
  
 Section 3.02. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original, but all of which
together 
  

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 shall constitute one and the same Agreement. In seeking proof of this Agreement, it shall not be necessary to produce or
account for more than one such counterpart signed by each of the parties hereto. 
  
 IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, have caused this Agreement to be signed in their respective names as of the date first above written. 
  

			
	PRICESMART INC.
		
	By:	 	 /s/ John Heffner

	Name:	 	John Heffner
	Title:	 	Executive V.P./CFO
	
	PSMT CARIBE, INC.
		
	By:	 	 /s/ Atul Patel

	Name:	 	Atul Patel
	Title:	 	Director/Treasurer
	
	PSMT TRINIDAD/TOBAGO LIMITED
		
	By:	 	 /s/ Ernesto Grijalva

	Name:	 	Ernesto Grijalva
	Title:	 	Director/Secretary
	
	INTERNATIONAL FINANCE CORPORATION
		
	By:	 	 /s/ Stanley Greig

	Name:	 	 Stanley Greig

	Title:	 	 Manager, Latin America and
 Caribbean Credit and Portfolio
 Division, Global Manufacturing
 Services Department

  

 - 6 -

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