Document:

ex-10_6.htm

    
      

      

    

    TWENTY
SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

    

    

    

    This
Twenty Second Amendment to Employment Agreement is made and entered into as of
January 1, 2009, by and between PriceSmart, Inc., a Delaware Corporation
(“Employer”) and Robert M. Gans (“Executive”).

    

    

    Recitals

    

    
      	
              A)  

            	
              On
      September 20, 1994 an Employment Agreement was made and entered into by
      and between Executive and Price Enterprises,
  Inc.

            

    

    

    
      	
              B)  

            	
              Said
      Employment Agreement has been assigned to Employer and amended on twenty
      one prior occasions;

            

    

    

    
      	
              C)  

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

            

    

    

    

    Agreement

    

    
      	
              1.  

            	
              Section
      2.1 of the Agreement which
provides:

            

    

    

    
      	
               
      

            	
              2.1

            	
              Salary.  For
      Executive's services hereunder, Employer shall pay as base salary to
      Executive the amount of $273,300 during each year of the Employment Term.
      Said salary shall be payable in equal installments in conformity with
      Employer's normal payroll period. Executive shall receive such salary
      increases, if any, as Employer, in its sole discretion, shall
      determine.

            

    

    

    is hereby amended, effective January
1, 2009, to provide as follows:

    

    
      	
              2.1  

            	
              Salary.  For
      Executive's services hereunder, Employer shall pay as base salary to
      Executive the amount of $278,800 during each year of the Employment
      Term.  Said salary shall be payable in equal installments in
      conformity with Employer’s normal payroll period. Executive shall receive
      such salary increases, if any, as Employer, in its sole discretion, shall
      determine.

            

    

    

     

    
      	
              2.  

            	
              All
      other terms of the Employment Agreement, as amended, shall remain
      unaltered and fully effective.

            

    

    

    

    

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

    

    

    

    EXECUTIVE                                                                                     EMPLOYER

    PRICESMART, INC.

    

    Robert M.
Gans                                                                                     By:           ______________________

    

    ______________________                                                              Name:      Jose Luis
Laparte

    

                                          Its:           Presidentex-10_7.htm

    
      

      

    

     

     

    EXECUTION

     

     

    DATED AS OF THE
19th DAY OF FEBRUARY,
2009

     

    AMONG

    PRICESMART
(TRINIDAD) LIMITED

    (the
'Borrower')

     

    AND

     

    FIRSTCARIBBEAN
INTERNATIONAL BANK

     

     

    (TRINIDAD
& TOBAGO) LIMITED

     

     

    (the
'Bank')

     

     

    LOAN
FACILITY AGREEMENT

     

     

    (Up to
US$9,500,000.00)

     

     

    

    M.
Glenn Hamel-Smith

    Attorney-at-Law

    M
HAMEL-SMITH & CO

    Eleven
Albion

    Corner
Dere & Albion Streets

    Port
of Spain

    Trinidad

    Tel:
hit (868) 821-5500

    Fax:
Int (868) 821-5501

    E-Mail:
mhstrinidadlaw.com

    Web
site: http://www.trinidadlaw.com

    ©2008 M
Hamel-Smith & Co. – All Rights Reserved

    
      
        
          
            	
                                 

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    Index
to Clauses

     

    1           Definitions
and Interpretation

     

    2           The
Facilities

     

    3           Purpose

     

    4           Conditions

     

    5           Drawdown

     

    6           Repayment,
Prepayment and Cancellation

     

    7           Fees
and Expenses

     

    8           Payments

     

    9           Representations
and Warranties

     

    10           Security
and Undertakings

     

    11           Default

     

    12           Indemnities

     

    13           Taxes

     

    14           Changes
in Circumstances

     

    15           General

     

    Schedule
1 Schedule 2 Schedule 3 Schedule 4 Schedule 5

    

    Drawdown
Notice

     

    Conditions
Precedents

     

    Form of
Collateral Mortgage – Port-of-Spain Form of Deed of Licence – PATT

    Form of
Deed of Licence – TCDCL

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

        
          611-?
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:r15 Q
A1
 
FACILITY AGREEMENT

          T
THN1?

          THIS
LOAN FACILITY AGREEMENT (this 'Agreement') is dated as of the 19th
day 

          of February, 2009 and made BETWEEN:

        

      

    

    

     

    
      	
              1.  

            	
              The
      'Borrower': PRICESMART
      (TRINIDAD) LIMITED a company with limited liability incorporated
      under the Companies Act, 1995 (Ch. 81:01 of the laws of Trinidad and
      Tobago) with company number P 1916 (95) A and having its registered office
      at Endeavour Road and Narsaloo Ramaya Road, Chaguanas, in the island of
      Trinidad; and

            

    

     

    
      	
              2.  

            	
              The
      'Bank':
      FI40012IBBEAN
      INTERNATIONAL BANK (TRINIDAD & TOBAGO)
      LIMW01/.4,.,bank licensed
      under the Financial Institutions Act, 1993 (as amend'eA ynd incorporated
      as a company with limited liability under the Companies Actg*,:81:01,
      of the revised law., of Trinidad and Tobago and having its
      registereOltee at 74 Long Circular Road, Maraval,
  Trinidad.

            

    

     

    RECITALS:

    Y,.1
-969

    A.The
Borrower has requested' thp,,Bank to make available to it a sum of up to
NINE

    MILLION
FIVE.:1:IUig? /THOUSAND
US DOLLARS (US$9,500,000.00) (the 'Principal
Sun)T6i the purpose
of providing funding, utilizing the equity in the existing warehouse clubs, to
assist in the costs related to the construction of the Price Smart San Fernando
warehouse club.

     

    NOW
THEREFORE IT IS HEREBY AGREED by and between the parties as
follows:

     

    1            DEFINITIONS
AND INTERPRETATION

     

    1.1            Definitions

     

    In this
Agreement, unless the context otherwise requires:

    `Advance'
means an advance made or to be made by the Bank to the Borrower under
this Agreement or, as the context may require, the principal amount thereof from
time to time outstanding;

     

    `Affiliate'
means any legal entity which controls, is controlled by, or is under
common control with another legal entity. An entity is deemed to "control"
another if it owns directly or indirectly at least fifty percent of either of
the following"

    
      	
               
      

            	
              (A)

            	
              The
      shares entitled to vote at a general election of directors of
      such

            

    

    
      	
               
      

            	
              other
      entity;

            

    

    
      
        
          
            	
                     

                  

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
               
      

            	
              (B)

            	
              The
      voting interest in such other entity if such other entity does
      not

            

    

     

    
      	
               
      

            	
              have
      either shares or directors;

            

    

     

    `Assignment of
Insurance Policies' means an assignment of even date herewith made by the
Borrower in favour of the Bank assigning all of the Borrower's right title and
interest in the Insurance Policies with Loss Payee Endorsements, by way of
further and/or additional and/or collateral security to that created by this
Agreement for the repayment and discharge of the Secured
Liabilities;

     

    `Balloon Payment'
means a balloon payment in the sum of TWO MILLION EIGHT HUNDRED AND FIFTY
THOUSAND US DOLLARS (US$2,850,000.00) payable on the Repayment Date in
accordance with Clause 6.1 hereof;

     

    `Business Day'
means a day on which commercial banks in Trinidad and Tobago and the
United States of America are open for business of the kind contemplated in this
Agreement (not being a Saturday or Sunday or public holiday);

     

    `Capital
Expenditure' means [any expenses incurred which would be treated as a
capital expense in accordance with International Financial Reporting Standards
in Trinidad and Tobago, including but not limited to, expenses incurred in
acquiring or upgrading physical assets such as buildings and
machinery];

     

    `Collateral
Mortgage – Port-of-Spain' means the collateral mortgage to be entered
into by the Borrower in the form attached hereto as Schedule 3 creating in
favour of the Bank a first mortgage over the property known as PriceSmart
Port-of-Spain as more properly described in the schedule thereto granted by way
of further and/or additional and/or collateral security to that created by this
Agreement for the repayment and discharge of the Secured Liabilities, to be
entered into contemporaneously with the execution of the Deeds of
Licence;

     

    `Collateral
Mortgage – San Fernando' means the collateral mortgage dated of even date
herewith made by the Borrower creating in favour of the Bank a first mortgage
over the property known or to be known as PriceSmart San Fernando as more
properly described in the schedule thereto granted by way of further and/or
additional and/or collateral security to that created by this Agreement for the
repayment and discharge of the Secured Liabilities;

     

    `Collateral
Mortgages' means together the Collateral Mortgage – Port-of-Spain and the
Collateral Mortgage – San Fernando;

     

    `Commitment'
means the commitment of the Bank to make the Advance up to the Facility
Amount on the terms and conditions of this Agreement;

     

    `Conditions
Precedent' means the conditions precedent set out in Schedule
2;

     

    `Debentures'
mean together the Debenture – PSMT, the Debenture – PSOL and the
Debenture – PST, and any of them individually a Debenture';

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

        
          611-?
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:r15 Q
A1
 
FACILITY AGREEMENT

          T
THN1?

          THIS
LOAN FACILITY AGREEMENT (this 'Agreement') is dated as of the 19th
day 

          of February, 2009 and made BETWEEN:

        

      

    

    

     

    `Debenture —
PSMT' means the debenture made collateral hereto dated of even date
herewith and made between PSMT and the Bank whereby PSMT has created in favour
of the Bank fixed charges by way of mortgage and floating charges over all of
its present and future assets as security for the repayment of all moneys and
liabilities specified therein, ranking second only to the Debenture -
RBTT;

     

    `Debenture
—
PSOL' means the debenture made collateral hereto dated of even date
herewith and made between PSOL and the Bank whereby PSOL has created in favour
of the Bank fixed charges by way of mortgage and floating charges over all of
its present and future assets as security for the repayment of all moneys and
liabilities specified therein, ranking second only to the Debenture -
RBTT;

     

    `Debenture — PST'
means the debenture made collateral hereto dated of even date herewith
and made between the Borrower and the Bank whereby the Borrower has created in
favour of the Bank fixed by way of mortgage and floating charges over all of the
Borrower's present and future assets as security for the repayment of all moneys
and liabilities specified therein, ranking second only to the Debenture -
RBTT;

     

    `Debenture RBTT'
means the debenture dated the 5th day of
August 2003 and registered on the 4th day of
September 2003 with registration No. DE2003 0326 3635 D001 together with a
supplemental mortgage debenture dated as of the 2nd day of
December 2008 and registered on the 22nd day of
December 2008 with registration No. DE 2008 0306 9674 D001 whereby the Borrower
created in favour of RBTT Bank Limited a mortgage over the property known as
PriceSmart Chaguanas as more particularly described in the schedule thereto as
security for the repayment of all moneys and liabilities specified
therein;

     

    `Deed of
Adherence' means the deed of adherence to be entered into by PSE, the
Borrower and the Bank under which PSE will agree to adhere to the terms of the
Guarantee as if it were originally named as a guarantor thereunder, which deed
is to be entered into upon the registration of the PSE Articles of Organisation
Amendment in the relevant registry in Barbados;

     

    `Deed
of
Subordination'
means the deed of subordination of even date herewith entered into in
favour of the Bank by the Borrower, PSI and PMST subordinating fifty percent
(50%) of the Intercompany Debt to the amounts owing by the Borrower to the
Bank;

     

    `Deeds
of
Licence'
means the deeds of licence and consent required by the Borrower to enter
into the Collateral Mortgage — Port-of-Spain, to be provided by each of the Port
Authority of Trinidad and Tobago and Trinbago Cultural Development Company
Limited respectively in respect of PriceSmart Port-of-Spain in the forms or in
similar forms attached hereto as Schedule 4 and Schedule 5
respectively;

     

    `Default Rate'
means the Interest Rate plus 3% per annum;

     

    `Drawdown Date'
means, in relation to any Advance, the date on which the Advance is
made;

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    'Brawdown Notice'
means a notice in the form set out in Schedule 1;

     

    `Encumbrance'
means any mortgage, pledge, charge, lien, assignment by way of security,
title retention, hypothecation or other security agreement or arrangement or
other interest vested in a third party, including those imposed or arising by
operation of law or equity;

     

    `Event
of Default'
means any of the events or circumstances described in Clause 11.1 and
includes any event which, with the giving of notice and/or lapse of time and/or
a determination being made under the relevant sub-clause, would be an Event of
Default;

     

    `Facilities'
means the loan facilities made available to the Borrower by the Bank upon
the terms and subject to the conditions set out in this Agreement;

     

    `Facility Amount'
means the sum of up to NINE MILLION FIVE HUNDRED THOUSAND U.S. DOLLARS
(US$9,500,000.00);

     

    `Financial
Indebtednes. means Indebtedness incurred in respect of:

     

    
      	
              (a)  

            	
              money
      borrowed, raised or deposited;

            

    

     

    
      	
              (b)  

            	
              any
      bond bill of exchange note loan stock debenture commercial paper or
      similar security or instrument;

            

    

     

    
      	
              (c)  

            	
              acceptance,
      documentary credit or guarantee
facilities;

            

    

     

    
      	
              (d)  

            	
              deferred
      payments for assets or services acquired but excluding trade credit in the
      ordinary course of business not exceeding ninety (90) calendar
      days;

            

    

     

    
      	
              (e)  

            	
              rental
      payments under leases, whether in respect of land buildings machinery
      equipment or otherwise, entered into primarily as a method of raising
      finance or financing the acquisition of the relevant
  asset;

            

    

     

    
      	
              (f)  

            	
              payments
      under hire purchase contracts;

            

    

     

    
      	
              (g)  

            	
              factored
      debts, to the extent that there is
recourse;

            

    

     

    
      	
              (h)  

            	
              guarantees
      bonds standby letters of credit or other instruments issued in connection
      with the performance of contracts or
  obligations;

            

    

     

    (i) interest
rate or currency swaps and similar financial transactions;

     

    
      	
              (j)  

            	
              guarantees
      indemnities or other assurances against financial loss in respect of
      Indebtedness of any person falling within any of paragraphs (a) to (i)
      inclusive above; and

            

    

     

    
      	
               
      

            	
              (k)

            	
              amounts
      raised or obligations incurred under any other
  transaction

            

    

     

    
      	
               
      

            	
              having
      the commercial effect of any of the
above;

            

    

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

        
          611-?
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:r15 Q
A1
 
FACILITY AGREEMENT

          T
THN1?

          THIS
LOAN FACILITY AGREEMENT (this 'Agreement') is dated as of the 19th
day 

          of February, 2009 and made BETWEEN:

        

      

    

    

     

    `Financial
Costs' means all fees charges expenses and disbursements payable by the
Borrower to the Bank including all legal charges and disbursements;

     

    `5-Year
SWAP Rate' means the rate of interest offered in the London inter-bank
market and published on the Bloomberg Financial Market Service for five (5) year
swaps of an equivalent or similar amount to the Loan as conclusively determined
by the Bank at 11:00AM on the date hereof and if no such rate is available, the
most recent such rate published on the Bloomberg Financial Market Service prior
to the date hereof;

     

    `Group'
means the Borrower, PSMT and PSOL;

     

    `Guarantee
–
PSI' means the temporary guarantee and indemnity to be provided by PSI in
favour of the Bank, by way of further and/or additional and/or collateral
security to that created by this Agreement for the repayment and discharge of
the Secured Liabilities, which will expire automatically upon the later of the
perfection of the Collateral Mortgage – Invaders Bay or the execution of the
Deed of Adherence;

     

    'Guarantee'
means the joint and several guarantee and indemnity dated of even date
herewith made by PSMT and PSOL in favour of the Bank, as same may be further
amended or supplemented from time to time, by way of further and/or additional
and/or collateral security to that created by this Agreement for the repayment
and discharge of the Secured Liabilities;

     

    'Guarantor?
means as at the date
hereof together PSMT, PSI and PSOL, and individually each a 'Guarantor';

     

    `Indebtedness'
means any obligation for the payment or repayment of money, whether
present or future, actual or contingent, sole or joint;

     

    `Intercompany
Debt' means the total combined amounts owing from time to time by the
Borrower to any member of the Group and/or PSI;

     

    `Insurance
Policies' mean (i) that fire and special perils insurance policy no. PCF
10010845 001 with Sagicor General Insurance, Inc., providing coverage in respect
of the Properties (including business interruption coverage with standard
deductibles within the industry (satisfactory to the Bank) for such coverage) in
the minimum amount of TEN MILLION FIVE HUNDRED THOUSAND US DOLLARS
(US$10,500,000); (ii) that insurance policy no. PCF 10010845 001 with Sagicor
General Insurance, Inc., providing general insurance cover (including loss of
rent and business interruption insurance) in the minimum amount of TWO MILLION
NINE HUNDRED THOUSAND US DOLLARS (US$2,900,000) with the Bank noted as first
loss payee; (iii) any insurance policy replacing any of the above policies; and
(iv) any other insurance policy providing coverage in respect of the Properties
and/or any business of the Borrower in relation to the Properties, and 'Insurance
Policy' shall mean any one of them;

     

    `Interest
Rate' means in respect of the period commencing with the date hereof and
expiring on the fifth anniversary thereof a fixed rate per annum of six
point

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    seven one
percent (6.71%) equivalent to the 5-Year Swap Rate plus the Margin, and
thereafter floating at 90-Day LIBOR plus the Margin;

     

    `Letter
of Undertaking'
means the letter of undertaking or comfort of even date herewith provided
by PSI,
the ultimate parent company of the Borrower, in respect of the
obligations of the Borrower hereunder;

     

    `Loan' means the aggregate
principal amount of Advance(s) for the time being outstanding under this
Agreement;

     

    `Loan Agreement'
means this Agreement as same may be amended, supplemented, novated or
replaced from time to time;

     

    `Loan to Value
Ratio' means, at any time, the percentage obtained by dividing the Loan
amount by the Value amount and multiplying the result by 100;

     

    `Loss Payee
Endorsements' means endorsements to be made on those policies of
insurance selected by the Bank of those taken out by the Borrower on its
properties whereby the Bank is shown dsloss payee, in such form as the Bank
shall approve;

     

    `Margin'
means four point two five percent (4.25%) per annum;

     

    `Material
Consent' means, in relation to any member of the Group, any approval,
authorisation, consent, exemption, licence, permission or registration by, of or
from any governmental or regulatory or other authority or person necessary or
appropriate for (i) the carrying on by it of its business and (ii) the
execution, delivery and performance of this Agreement and any Related Document
and the use of the Facility;

     

    `Mortgage –
Mausica' means the mortgage over the property known as PriceSmart Mausica
more particularly described in the schedule to a collateral memorandum of
mortgage dated as of the 26th day of
August 2008 and registered on the 18th day of
September 2008 under the Real Property Ordinance under Vol. 4883 Folio 67,
entered into by the Borrower in favour of RBTT Bank Limited;

     

    `Mortgage
Chaguanas' means the mortgage over the property in Chaguanas more
particularly described in the schedule to the Debenture - RBTT;

     

    `90-Day LIBOR'
means the rate of interest offered in the London inter-bank market and
published on the Bloomberg Financial Market Service for ninety (90) day loans of
an equivalent or similar amount to the Loan as conclusively determined by the
Bank at 11:00AM on each Reset Date, and if no such rate is available, the most
recent such rate published on the Bloomberg Financial Market Service prior to
the relevant Reset Date;

     

    `Payment Date'
means the 19th day of
each month in each year after the date hereof up to and including the Repayment
Date provided that if any such date is not a Business Day, the relevant Payment
Date shall be the first Business Day occurring immediately after such specified
date;

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    `Permitted
Encumbrances' means the Debenture – RBTT, the Mortgage –Mausica, the
Mortgage – Chaguanas and any of the Encumbrances described in Clause
10.3(2);

     

    `Potential
Default' means any event which, with the giving of notice or any
certificate or the lapse of time or the making of any determination or the
satisfaction of any other condition (or any combination thereof), might/would
constitute an Event of Default;

     

    PriceSmart
Mausica' means the property located at Churchill Roosevelt Highway,
Mausica, more particularly described in the schedule to the Mortgage
-Mausica;

     

    PriceSmart
Chaguanas' means the property located at Price Plaza, Chaguanas, more
particularly described in the schedule to the Mortgage – Chaguanas;

     

    PriceSmart
Port-of-Spain' means the property located at Invaders Bay, Port of Spain,
more particularly described in the schedule to the Collateral Mortgage
–Port-of-Spain;

     

    PriceSmart San
Fernando' means the property located off South Trunk Road, La Romaine,
San Fernando, more particularly described in the schedule to the Collateral
Mortgage - San Fernando;

     

    `Properties'
means (i) PriceSmart Port-of-Spain; and (ii) PriceSmart San Fernando; or
any property which may from time to time be added or substituted for the
Properties;

     

    `PSE' means
PriceSmart Exempt SRL, an exempt society with restricted liability organised
under the Societies with Restricted Liability Act of the laws of Barbados with
society number 120 the registered address of which is The Ernst & Young
Building, Bush Hill, Bay Street, St. Michael, Barbados;

     

    `PSE Articles
of
Organisation
Amendment' means the amendment to the Articles of Organisation of PSE to
change the restriction therein preventing it from transacting business with any
resident of the Caricom region to one preventing it from transacting business
with any resident of Barbados;

     

    `PSI' means
PriceSmart, Inc., a corporation incorporated and existing under and by virtue of
the General Corporation Law of the laws of the State of Delaware with its
registered office at 1209
Orange Street, Wilmington, New Castle Delaware, and with its headquarters
at 9740
Scranton Road, San Diego, California, United States of
America;

     

    `13SMT' means
PSMT Trinidad/Tobago Limited, a company with limited liability incorporated
under the Companies Act, 1995
(Ch. 81:01 of the laws of Trinidad and Tobago) with company number P-1676(95)
and having its registered office at

    
      
        
        

         

      

      
         

        
          

        

      

      
         

        
          611-?
.
-V5
                     
.
:r15 Q
A1
 
FACILITY AGREEMENT

          T
THN1?

          THIS
LOAN FACILITY AGREEMENT (this 'Agreement') is dated as of the 19th
day 

          of February, 2009 and made BETWEEN:

        

      

    

    

     

    Endeavour
Road and Narsaloo Ramaya Road, Chaguanas, in the island of
Trinidad;

     

    `PSOL' means P S Operations
Limited, a company with limited liability incorporated under the Companies Act,
1995 (Ch. 81:01 of the laws of Trinidad and Tobago) with company number
P-1675(95) and having its registered office at Endeavour Road and Narsaloo
Ramaya Road, Chaguanas, in the island of Trinidad;

     

    `Related
Document' means any document or instrument required by this Agreement to
be executed delivered or produced by the Borrower or the Guarantors including,
but not limited to, the Security Instruments;

     

    ` Repayment Date'
means the 19th day of
February, 2016;

     

    `Repayment
Period' means the period commencing with the date hereof and ending on
the Repayment Date;

     

    `Reset Date'
means the last Business Day occurring before the fifth anniversary of the
date of this Agreement and thereafter the last Business Day of each successive
ninety (90) calendar day period occurring during the Repayment
Period;

     

    `Secured
Liabilities' means all monies obligations and liabilities whatsoever
whether for principal interest or otherwise in whatever currency which may now
or at any time in
the future be due owing or incurred under the terms of the Loan Agreement
and any of the Security Instruments whether actual or contingent and whether
alone severally or jointly as principal guarantor surety or otherwise and in
whatever name or style and whether on any current or other account or in any
other manner whatsoever;

     

    'Security Assets'
means the assets rights and property of the Borrower and each of the
Guarantors which are the subject of any security created or purported to be
created by the Security Instruments and includes any part or any interest in
them subject to the Permitted Encumbrances;

     

    'Security
Instruments' means (i) the Debentures; (ii) the Collateral Mortgages;
(iii) the Guarantee; (iv) the Assignment of Insurance Policies; (v) the Deed of
Subordination; (vi) the Letter of Undertaking; (vii) the Guarantee – PSI; (viii)
the Deed of Adherence; (ix) any other document designated as such in writing by
both or all parties to it, and (x) each variation or amendment of or supplement
to any document referred to in (i) to (ix) above from time to time (and where
the context permits includes any one or more of them);

     

    'Security
Interest' means any mortgage, pledge, lien, hypothecation, encumbrance,
security assignment, trust arrangement, title retention or other security
interest or arrangement of any kind whatsoever having the effect of conferring
security;

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    `Security
Period' means the period commencing on the date hereof and ending on the
date when no monies or other obligations of the Borrower or any Guarantor or
other security provider remain outstanding under this Agreement;

     

    `Taxes'
includes all present and future taxes levies imposts duties fees charges
or withholdings of whatever nature and wherever levied charged or assessed,
together with any interest thereon and any fines surcharge or penalties in
respect thereof.

     

    `US$',
'US Dollars',
or 'USD'
means the lawful currency of the United States of America;

     

    `Value'
means the combined total value of the Properties from time to time
determined and provided to the Bank in accordance with Clause
10.2(e).

     

    1.2           Interpretation

     

    (1)           In
this Agreement, unless otherwise expressly provided, any reference
to:

     

    
      	
              (a)  

            	
              the
      Borrower and the Guarantors shall be construed so as to include their
      respective successors and assigns from time to
  time;

            

    

     

    
      	
              (b)  

            	
              a
      time of day is a reference to Trinidad and Tobago
  time;

            

    

     

    
      	
              (c)  

            	
              a
      'person' shall be construed as a reference to any individual, firm,
      company, society, body corporate, government, state or state entity or any
      association or partnership (whether or not having separate legal
      personality) or any two or more of the
  foregoing;

            

    

     

    
      	
              (d)  

            	
              this
      Agreement or any reference to another document or instrument, is a
      reference to this Agreement or to that other document or instrument, as
      the same may have been, or may from time to time be, amended or
      supplemented;

            

    

     

    
      	
              (e)  

            	
              the
      liquidation, winding-up or dissolution of a company, society or body
      corporate or the appointment of a receiver, manager or administrator of or
      in relation to a company, society or body corporate or any of its assets
      shall be construed so as to include any equivalent or analogous
      proceedings or, as the case may be, person under the law of the
      jurisdiction in which it is incorporated or any jurisdiction in which it
      carries on business or has assets or
  liabilities;

            

    

     

    
      	
              (f)  

            	
              a
      Clause or a Schedule is a reference to a clause of or a schedule to
      this

            

    

     

    
      	
               
      

            	
              Agreement;

            

    

     

    
      	
              (g)

            	
              any
      statutory provision shall include a reference to such provision as
      from

            

    

     

    
      	
               
      

            	
              time
      to time re-enacted, amended, extended or
  replaced.

            

    

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
              (2)  

            	
              Fees,
      costs and expenses payable under or pursuant to this Agreement shall be
      exclusive of any value added tax or similar taxes chargeable on them,
      which shall accordingly be payable in
addition.

            

    

     

    
      	
              (3)  

            	
              In
      this Agreement, words importing the singular shall include the plural and
      vice versa.

            

    

     

    
      	
              (4)

            	
              Headings
      in and the list of contents of this Agreement are for ease of
      reference

            

    

     

    
      	
               
      

            	
              only
      and shall not affect its
interpretation.

            

    

     

    2THE
FACILITY

     

    Subject
to the teens and conditions of this Agreement the Bank agrees to make available
to the Borrower a long term loan facility in the maximum aggregate principal
amount equal to the Facility Amount.

     

    3 PURPOSE

     

    
      	
              (1)  

            	
              The
      Advances under the Facilities shall be applied towards providing funding,
      utilizing the equity in the existing warehouse clubs, to assist in the
      costs related to the construction of the PriceSmart San Fernando warehouse
      club.

            

    

     

    
      	
              (2)  

            	
              The
      Borrower shall not use any Advance for any purpose except that permitted
      in this Clause. However, failure by the Borrower to comply with this
      Clause shall not prejudice any rights of the Bank, which shall not be
      responsible for monitoring or ensuring the use or application by the
      Borrower of any Advance.

            

    

     

    4            CONDITIONS

     

    4.1            Conditions
for first Advance

     

    The first Drawdown Notice may
not be issued, and the Bank shall not be obliged to make any Advance, unless the
Conditions Precedent have been satisfied and it shall have received, in each
case in form and substance satisfactory to it, the documents, items and evidence
specified in Schedule 2 unless waived by the Bank and shall have notified the
Borrower accordingly.

     

    4.2Conditions
for all Advances

     

    The
obligation of the Bank to make each and every Advance is subject to the further
conditions precedent that:

     

    
      	
              (a)  

            	
              at
      the time of the giving of the relevant Drawdown Notice and at the time of
      such Advance, the representations and warranties set out in Clause 9 are
      true and correct on and as of each such time as if each were made with
      reference to the facts and circumstances existing at such time;
      and

            

    

     

    
      	
              (b)  

            	
              at
      the time of the giving of the relevant Drawdown Notice and at the time of
      such Advance, no Event of Default or Potential Default shall have occurred
      and be continuing or would result from the making of such
      Advance.

            

    

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    5           DRAWDOWN

     

    5.1           Drawdown

     

    
      	
              (I)

            	
              Subject
      to the terms and conditions of this Agreement, the Borrower may
      draw

            

    

     

    
      	
               
      

            	
              Advances
      up to the Facility Amount provided
that:

            

    

     

    
      	
              (a)  

            	
              the
      Bank shall have received a duly completed and executed Drawdown Notice
      relating to each proposed Advance not later than 10:00 am on the Business
      Day prior to the proposed Drawdown Date of such
  Advance;

            

    

     

    
      	
              (b)  

            	
              the
      aggregate of all Advances shall not exceed the Facility
      Amount.

            

    

     

    
      	
               
      

            	
              (2)
      Subject as otherwise expressly provided in this Agreement, each Drawdown
      Notice shall be irrevocable and the Borrower shall be obliged to borrow
      accordingly.

            

    

     

    5.2Payment of
Advances

     

    Subject
as otherwise provided in this Agreement, the Facility Amount shall be made
available on the Drawdown Date therefor by the Bank (i) satisfying all Financing
Costs; and (ii) crediting the balance of the Facility Amount to such bank
account of the Borrower as it shall specify to the Bank for this purpose in the
relevant Drawdown Notice.

     

    6           REPAYMENT,
PREPAYMENT AND CANCELLATION

     

    6.1           Interest
and Repayment

     

    The
Borrower shall pay to the Bank interest on the Facility Amount on each relevant
Payment Date. Such interest shall be paid at the Interest Rate together with
payments of principal by consecutive monthly instalments of principal and
interest combined followed by a single balloon payment of TWO MILLION EIGHT
HUNDRED AND FIFTY THOUSAND US DOLLARS (US$2,850,000.00) on the Repayment Date.
Initially the instalments are calculated to be 84 equal monthly principal
instalments of SEVENTY-NINE THOUSAND ONE HUNDRED AND SIXTY-SIX POINT SIX SEVEN
US DOLLARS (US$79,166.67) plus interest at the Interest Rate followed by a
single balloon payment of TWO MILLION EIGHT HUNDRED AND FIFTY THOUSAND US
DOLLARS (US$2,850,000.00) on the Repayment Date. The Bank shall supply to the
Borrower a replacement payment schedule within thirty (30) calendar days of a
change in the Interest Rate.

     

    6.2Prepayment

     

    
      	
               
      

            	
              (1)
      On any Payment Date the Borrower may (provided that it shall have given to
      the Bank not less than thirty (30) calendar days' prior written notice
      specifying the date and intended amount of the prepayment) prepay to the
      Bank in part (but not whole) the Facility subject
  to:

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
              (i)  

            	
              a
      minimum prepayment amount of TWO HUNDRED THOUSAND US DOLLARS
      (US$200,000.00);

            

    

     

    
      	
              (ii)  

            	
              the
      payment by the Borrower of any breakage costs incurred by the Bank;
      and

            

    

     

    
      	
               
      

            	
              (iii)
      the payment by the Borrower of a prepayment fee of zero point five zero
      percent (0.50%) of the prepayment amount if the prepayment occurs within
      twenty-four (24) months of the date
hereof.

            

    

     

    
      	
              (2)  

            	
              Prepayments
      under this Agreement shall be made together with accrued interest thereon
      and all other amounts payable under and in relation to this Agreement and
      any Related Document.

            

    

     

    
      	
              (3)  

            	
              No
      amount prepaid under this Agreement may be
  redrawn.

            

    

     

    
      	
              (4)  

            	
              Any
      notice of prepayment given by the Borrower under this Agreement shall be
      irrevocable and the Borrower shall be bound to prepay the relevant
      amount(s) in accordance with such notice. The Borrower may not prepay all
      or any part of any Advance except in accordance with the express terms of
      this Agreement.

            

    

     

    
      	
              (5)  

            	
              Any
      partial prepayment shall be applied against and shall reduce or if
      applicable extinguish the amounts specified in Clause 6.1 in inverse order
      of maturity.

            

    

     

    6.3Default interest

     

    The
Borrower shall, on demand by the Bank, pay to the Bank interest on sums
(including but without limitation default interest) not paid on their respective
due dates under this Agreement from the due date up to the date of actual
payment (as well after as before judgment) at a rate determined by the Bank to
be three percent (3%) per annum above the applicable Interest Rate (the 'Default
Rate').

     

    6.4Basis
of calculation

     

    All
interest and other payments of an annual nature under this Agreement shall
accrue from day to day and be calculated on the basis of the actual number of
calendar days elapsed and a 360-day year. Any certificate or determination by
the Bank as to any rate of interest payable under this Agreement shall, in the
absence of manifest error, be conclusive and binding on the Borrower. The Bank
shall deliver to the Borrower not later than ten (10) Business Days prior to any
Payment Date the Bank's calculation of any change to the payment schedule after
determining same.

     

    7             FEES AND EXPENSES

     

    7.1             Acceptance
fee

     

    Unless
already paid upon the acceptance of the offer of financing, the Borrower will
pay to the Bank, on the first Drawdown Date or if earlier seven (7) calendar
days after the date of this Agreement, an upfront acceptance fee of zero point
seven five percent (0.75%) of the Facility Amount.

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

        
          
            	
                    13

                  

          

          

        

      

    

    

     

    7.2Expenses

     

    
      	
              (1)  

            	
              The
      Borrower shall pay, on demand and on a full indemnity basis, to the Bank
      the amount of all reasonable costs and expenses (limited to legal and
      out-of-pocket expenses) which the Bank incurs in connection with the
      preparation negotiation execution and delivery of this Agreement and any
      Related Document.

            

    

     

    
      	
              (2)  

            	
              The
      Borrower shall pay, on demand and on a full indemnity basis, to the Bank
      all reasonable costs and expenses (limited to legal and out-of-pocket
      expenses) incurred by it in connection with any actual or proposed
      amendment or extension of or any waiver or consent under this Agreement
      and in contemplation of or otherwise in connection with the enforcement
      (or attempted enforcement) of, or preservation (or attempted preservation)
      of any rights under, this Agreement and/or any Related Document or
      otherwise in respect of any monies from time to time owing under this
      Agreement.

            

    

     

    7.3Duties

     

    The
Borrower shall pay all stamp, documentary, registration or other similar duties
or Taxes (including any payable by the Bank) imposed on or in connection with
this Agreement and/or any other Related Document and shall indemnify the Bank
against any liability arising by reason of any delay or omission by the Borrower
to pay such duties or Taxes.

     

    7.4Payment
by deduction

     

    The Bank
shall be entitled to effect payment (to the extent not already discharged) of
all fees expenses and other sums due and payable by the Borrower under this
Clause 7 out of and by deduction from any Advance and the Borrower hereby
irrevocably authorises the Bank to do so.

     

    8            PAYMENTS

     

    8.1            Payments

     

    
      	
              (1)  

            	
              All
      payments to be made by the Borrower under this Agreement shall be made in
      full, without any set-off or counterclaim whatsoever and free and clear of
      any deductions or withholdings, in immediately available, freely
      transferable, cleared funds in US Dollars as appropriate not later than
      11.00 am on the due date to the Bank or such account of the Bank as it may
      from time to time notify to the
Borrower.

            

    

     

    
      	
              (2)  

            	
              In
      the case of a partial payment by the Borrower, the Bank may appropriate
      such payment towards such of the obligations of the Borrower under this
      Agreement as the Bank may decide in order of longest standing maturity.
      The Borrower waives any right to make an appropriation in respect of a
      partial payment. Any appropriation by the Bank shall apply to the
      exclusion of any actual or purported appropriation by the
      Borrower.

            

    

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    8.2Business
Days

     

    Save as
otherwise provided in this Agreement, if any payment would otherwise be due on a
day which is not a Business Day, the next following Business Day shall be
substituted for such day unless such Business Day shall be in a new calendar
month in which case such payment shall instead be made on the immediately
preceding Business Day. Interest and fees shall be adjusted
accordingly.

     

    8.3Accounts

     

    Account(s)
maintained by the Bank in connection with the Facility shall (save for manifest
error) be prima facie
evidence of the amounts from time to time owing by the Borrower to the
Bank under this Agreement.

     

    9             REPRESENTATIONS
AND WARRANTIES

     

    9.1             Representations
and warranties

     

    The
Borrower represents and warrants to the Bank that:

     

    
      	
              (a)  

            	
              it
      is a company with limited liability duly incorporated and validly existing
      under the laws of Trinidad and Tobago and has power to carry on its
      business and to own its property and other
  assets;

            

    

     

    
      	
              (b)  

            	
              it
      has power and authority to execute deliver and perform its obligations
      under this Agreement and any Related Document and to use the Facility; all
      necessary action has been taken (and not revoked) or will be taken to
      authorise the execution delivery and performance of this Agreement and any
      Related Document; and subject to all applicable insolvency laws this
      Agreement constitutes, and any Related Document is or when executed and
      delivered will be, its valid and legally binding obligation enforceable in
      accordance with the terms hereof and
thereof;

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      execution delivery and performance of this Agreement and
    any

            

    

     

    
      	
               
      

            	
              Related
      Document and the use of the Facility do not and will
  not:

            

    

    
      	
              [Missing Graphic Reference]

            	
              contravene
      any law, regulation, directive, judgment or order to which it is subject;
      or

              result
      in any actual or potential breach of or default under any obligation
      agreement instrument or Material Consent to which it is a party or by
      which it is bound or which it requires to carry on its business;
      or

            

    

    

     

     

    
      	
              (iii)  

            	
              contravene
      any provision of its articles and by-laws, memorandum and articles of
      association and/or statutes and/or constitutional documents or that of any
      member of the Group; or

            

    

     

    
      	
              (iv)  

            	
              result
      in any limitation on its powers to borrow or incur Financial Indebtedness
      being exceeded; or

            

    

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

        
          
            	
                    13

                  

          

          

        

      

    

    

     

    
      	
               
      

            	
              (v)
      result in the creation or imposition of or oblige it to create any
      Encumbrance on its undertaking or any of its assets rights or
      revenues;

            

    

     

    
      	
              (d)  

            	
              its
      obligations under this Agreement and any Related Document are its direct,
      general and unconditional obligations and rank at least pan passu with all
      other of its present and future unsecured and unsubordinated Indebtedness
      (with the exception of any obligations which are mandatorily preferred by
      law and not by contract);

            

    

     

    
      	
              (e)  

            	
              no
      litigation, arbitration or administrative proceeding and without
      limitation no dispute with any statutory or governmental authority is
      current or pending or threatened against it or any other member of the
      Group or any of its respective assets which might have a material adverse
      effect on its respective business, assets or financial condition or its
      ability to observe or perform its respective obligations under this
      Agreement or any Related Document having regard to all its other
      obligations;

            

    

     

    
      	
              (f)  

            	
              no
      Event of Default or Potential Default has occurred and is
      continuing;

            

    

     

    
      	
              (g)  

            	
              neither
      it nor any other member of the Group is in default in the payment of any
      due and payable Taxes or in the filing, registration or recording of any
      document or under any legal or statutory obligation or requirement which
      default might have a material adverse effect on its respective business,
      assets or financial condition or its ability to observe or perform its
      respective obligations under this Agreement or any Related
      Document;

            

    

     

    
      	
              (h)  

            	
              neither
      it nor any other member of the Group is (or would with the giving of
      notice or lapse of time or any certificate or the making of any
      determination or any combination thereof be) in breach of or in default
      under any agreement relating to Financial Indebtedness to which it or such
      company is a party or by which it or such company is bound which might
      have a material adverse effect on its respective business, assets or
      financial condition or its ability to observe or perform its respective
      obligations under this Agreement or any Related Document having regard to
      all its other obligations;

            

    

     

    
      	
              (i)  

            	
              there
      has been no material adverse change in the financial condition of the
      Borrower or any other member of the Group since the date of the last
      audited consolidated accounts before each date on which this warranty is
      deemed to have been given which would affect the Borrower's ability to
      perform its obligations hereunder;

            

    

     

    
      	
              (j)  

            	
              there
      exists no Encumbrance other than any Permitted Encumbrances over the whole
      or any part of the present or future undertaking, assets, rights or
      revenues (including uncalled capital) of itself or any of its Subsidiaries
      and no obligation to create any such
  Encumbrance;

            

    

     

    
      	
              (k)  

            	
              the
      latest consolidated report and financial statements of Borrower and
      the

            

    

     

    
      	
               
      

            	
              other
      members of the Group have been prepared in accordance
  with

            

    

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    International
Financial Reporting Standards as applicable (`IFRS') which have been
consistently applied and give a true and fair view of the financial condition,
assets and liabilities of the Group at the date to which such financial
statements have been prepared; and since that date there has been no material
adverse change in the financial condition or the business, assets or operations
of the Group which might have a material adverse effect on its respective
business, assets or financial condition or its ability to observe or perform its
respective obligations under this Agreement or any Related Document having
regard to all its other obligations;

     

    
      	
              (1)

            	
              it
      has obtained and complied with all Material Consents, if any, (and
      the

            

    

    
      	
               
      

            	
              same
      are in full force and effect);

            

    

     

    
      	
              (m)  

            	
              it
      is not necessary or advisable that this Agreement be filed, registered,
      recorded or enrolled with any court, public office or other authority in
      any jurisdiction or that any stamp, documentary, registration or similar
      Tax or duty be paid on or in relation to this Agreement or any Related
      Document save for stamp duty on this Agreement under the Bciici/Covenant
      heading of the schedule to the Stamp Duty Act (Chap. 76:01) and fixed
      collateral stamp duty on the other Security Instruments and that the
      Collateral Mortgages be registered in the Deeds Registry of Trinidad and
      Tobago and that statements of charge attaching copies of each of the duly
      stamped and registered Debentures, Collateral Mortgages, and the
      Assignment of Insurance Policies be filed in the Companies Registry within
      thirty (30) calendar days of their
execution;

            

    

     

    
      	
              (n)  

            	
              all
      factual information supplied to the Bank in contemplation or for the
      purpose of this Agreement or the Facility was true and accurate in all
      material respects as at its date and did not omit anything material, no
      change has occurred since the date on which such information was supplied
      which renders the same untrue or misleading in any material respect, and
      all projections and statements of belief and opinion given by the Borrower
      to the Bank were made honestly and in good faith after due and careful
      enquiry and remain valid;

            

    

     

    
      	
               
      

            	
              (o)
      The Borrower has good and marketable title to the Security Assets subject
      to the Permitted Encumbrances except as expressly contemplated or
      permitted by this Agreement and all information provided by or on behalf
      of the Borrower was true in all material
  respects.

            

    

     

    9.2Repetition

     

    The
representations and warranties in Clause 9.1 will be deemed to be repeated by
the Borrower on and as of each Drawdown Date and each Payment Date as if made
with reference to the facts and circumstances existing at such respective
date.

     

    9.3Effect
of investigation

     

    The
rights and remedies of the Bank in respect of any misrepresentation or breach of
warranty on the part of the Borrower shall not be prejudiced or affected by
any

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    investigation
of the Borrower or any other person by or on behalf of the Bank or without
limitation any other act or matter which, but for this provision, would or might
prejudice or affect any such rights or remedies.

     

    10            SECURITY
AND UNDERTAKINGS

     

    10.1              Security

     

    {I)The
Loan and all interest and other sums payable under or in respect of the
Facility

     

    shall at
all times be secured or, as the case may be, guaranteed by the Security
Instruments.

     

    (2)The
Borrower shall procure within forty-five (45) calendar days of the date
hereof

     

    that:

     

    
      	
              (a)  

            	
              PSE's
      shareholders authorise, and PSE enters into and registers, the
      PSE

            

    

     

    
      	
               
      

            	
              Articles
      of Organisation Amendment;

            

    

     

    
      	
              (b)  

            	
              PSE
      enters into the Deed of Adherence;

            

    

     

    
      	
              (c)  

            	
              The
      Deeds of Licence and the Collateral Mortgage – Port-of-Spain
      are

            

    

     

    
      	
               
      

            	
              executed
      and delivered to the Bank for registration by the parties thereto;
      and

            

    

     

    
      	
              (d)  

            	
              all
      other steps which may be required to stamp, register and otherwise perfect
      the Deeds of Licence and the Collateral Mortgage – Port-of-Spain are
      completed.

            

    

     

    (3) The
Borrower shall, and shall procure that PSE, PSI and each other member of the
Group granting any security or guarantee under or in respect of the Facility
shall, forthwith on demand by the Bank, do and execute any and all further acts
deeds documents and things as may from time to time be in the reasonable opinion
of the Bank necessary or advisable to perfect each Security Document and protect
the interests of the Bank thereunder.

     

    10.2
General undertakings

     

    The
Borrower undertakes with the Bank that, so long as any Commitment is in force or
any monies or obligations are outstanding under this Agreement:

     

    
      	
              (a)  

            	
              it
      will ensure that its obligations under this Agreement shall at all times
      rank at least pari passu
      with all its other present and future unsecured and unsubordinated
      Indebtedness (with the exception of any obligations which are mandatorily
      preferred by law and not by
contract);

            

    

     

    
      	
              (b)  

            	
              it
      will deliver to the Bank, and it will procure that each of PSOL and PSMT
      delivers to the Bank, two (2) copies, promptly and in any event not later
      than forty-five (45) calendar days after the relevant period, of
      unconsolidated unaudited financial statements and management accounts
      relating to the Borrower, PSOL and PSMT respectively, containing financial
      information (in no less detail than such as having been prepared prior to
      the date of this Agreement) in respect of successive semi-annual periods
      during each of its financial
years;

            

    

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

        
          
            	
                    13

                  

          

          

        

      

    

    
 

    
      (g)

       

    

     

    (c) it
will procure that PSMT prepare consolidated financial statements in respect of
each financial period in accordance with Clause 10.11 and cause the same to be
audited by its auditors and deliver two (2) copies of the same to the Bank
promptly and in any event not later than ninety (90) calendar days after the end
of the relevant financial period (fiscal year end) and also deliver to the Bank
at least twenty-one (21) calendar days before each annual general meeting a copy
of its directors' report and any other documents required by law to be attached
thereto;

     

    it will
procure at its cost and provide to the Bank updated real estate appraisals of
the Properties every three years;

     

    it will
procure at its cost and provide to the Bank a formal valuation report acceptable
to the Bank on PriceSmart San Fernando upon the earlier of the completion of the
warehouse shell or October 31, 2009;

     

    it will
provide the Bank with copies of all notices and other communications dispatched
to its Ql-lareholders
(or any class thereof) or its creditors (or any class thereof) concerning
default or potential default in the payment of its debts when
dispatched;

     

    it will
provide the Bank with such financial and other information

    concerning
its business, assets and affairs and those of any members of the

    
      	
               
      

            	
              Group
      as the Bank may from time to time reasonably require except that it will
      not be obliged to provide any such information which is secret or
      confidential to it except on the basis of a confidentiality undertaking
      reasonably acceptable to it or if disclosure requires the consent of any
      third party which it will on request use best endeavours to
      obtain;

            

    

     

    
      	
              (h)  

            	
              it
      will obtain, maintain in full force and effect and comply with all
      Material Consents, if any, and any conditions
  thereof;

            

    

     

    
      	
              (i)  

            	
              it
      will not, without the prior written approval of the Bank, (such approval
      not to be unreasonably withheld or delayed) make or permit any material
      change in the nature of its business or commence any new type of business
      materially different from its business at the date of this
      Agreement;

            

    

     

    
      	
              (j)  

            	
              it
      will maintain insurances on or in relation to its business and assets with
      underwriters and insurance companies of repute against such risks of the
      kinds customarily insured against by, and in amounts reasonably and
      commercially prudent for, companies carrying on similar businesses, in
      particular it will confirm to the Bank procurement of insurance coverage
      for the full replacement value of any of the Properties within thirty (30)
      calendar days of the expiry of any fire or all perils insurance coverage
      ;

            

    

     

    
      	
              (k)  

            	
              it
      will promptly inform the Bank, of any occurrence or circumstance of which
      it becomes aware which might adversely affect its ability to perform its
      obligations under this Agreement or any Related Document and of any Event
      of Default or Potential
Default;

            

    

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

        
          
            	
                    13

                  

          

          

        

      

    

    

    
      	
              (1)

               

            

    

     

    it will
from time to time, forthwith on request by the Bank, deliver to it a certificate
signed by two of its directors (acting without personal liability except in the
case of wilful default or misconduct) confirming that to the best of their
knowledge, save as may be notified in detail in such certificate, no Event of
Default or Potential Default has occurred and is then subsisting and, without
limitation, giving detailed computations so as to establish whether it is in
compliance with Clause 10.5 to be accompanied by such evidence as to the
information and matters contained in such certificate as the Bank may from time
to time reasonably require;

     

    it will
promptly deliver to the Bank, and in any case no later than thirty (30) calendar
days after the end of each financial year, copies of all rates and tax
receipts;

     

    it will
conduct all transactions arising directly or indirectly out of this Agreement
through or with the Bank;

     

    it will
ensure that at. _the end
of each fiscal year the Loan to Value Ratio does not exceed sixty-one percent
(61%);

     

    unless
the Bank provides its prior written consent to vary same, such consent not to be
unreasonably withheld once all terms and conditions under this Agreement are
being met to the satisfaction of the Bank, it will ensure that at all times at
least fifty percent (50%) of Intercompany Debt is subordinated to the amounts
owing by the Borrower to the Bank;

     

    10.3Negative
Pledge

     

    
      	
              (1)  

            	
              So
      long as any Commitment is in force or any monies or obligations are
      outstanding under this Agreement, the Borrower undertakes and agrees that,
      it will not, without the Bank's prior written consent (such consent not to
      be unreasonably withheld), create or permit to subsist any Encumbrance,
      other than any Permitted Encumbrance, over all or any part of the Security
      Assets. Subject as aforesaid, any mortgage, charge or other security
      interest created by the Borrower on the Security Assets in favour of any
      other lender shall be expressed (or if not specifically expressed shall be
      deemed) to be subject to the Security Interests created pursuant to the
      Security Instruments over the Security Assets, and the Borrower will
      procure that an equivalent security interest is given to the Bank in
      respect of its obligations hereunder effective from the effective date of
      such other security interest.

            

    

     

    
      	
              (2)  

            	
              Paragraph
      (1) above shall not apply to any
Encumbrance:

            

    

     

    

    
      	
               

            	
              arising
      by operation of law and not as a result of any default or omission on the
      part of the Borrower or any other member of the Group having regard to the
      custom in the relevant trade for settlement of accounts;

              arising
      under any retention of title arrangements entered into in the ordinary
      course of trading and not entered into primarily for the purpose of
      securing any Financial
Indebtedness;

            

    

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              (c)  

            	
              over
      goods or documents of title to goods arising in the ordinary course of
      documentary credit transactions;

            

    

     

    
      	
              (d)  

            	
              created
      in favour of a plaintiff or defendant in any action, or the court or
      tribunal before which such action is brought, as security for costs or
      expenses where the Borrower is prosecuting or defending such action in its
      bona fide interests;

            

    

     

    
      	
              (e)  

            	
              pursuant
      to any order of attachment, distraint, garnishee order or injunction
      restraining disposal of assets or similar legal process arising in
      connection with legal proceedings;

            

    

     

    
      	
              (f)  

            	
              securing
      indebtedness incurred to refinance other indebtedness permitted to be
      secured under paragraphs (a) to (e) above inclusive and/or this paragraph
      (f), provided that the aggregate principal amount of the Indebtedness
      secured by such Encumbrance is not increased and such Encumbrance does not
      extend to any assets other than those which were subject to the
      Encumbrance securing the refinanced
  Indebtedness.

            

    

     

    10.4Disposals

     

    The
Borrower undertakes with the Bank that, so long as any Commitment is in force or
any monies or obligations are outstanding under this Agreement, it will not
without the prior consent of the Bank, such consent not to be unreasonably
withheld, either in a single transaction or in a series of transactions, whether
related or not and whether voluntarily or involuntarily, sell, transfer, lease
or otherwise dispose of all or any substantial part of the Security Assets save
for leases of the Property to third parties on arms length commercial
terms.

     

    10.5Ownership
and Management

     

    The
Borrower will take such steps as are available to it to ensure that there is no
change in ownership or management of the Borrower during the Repayment
Period.

     

    10.6Dividends.

     

    
      	
               
      

            	
              (1)
      Except with the prior written consent of the Bank, such consent not to be
      unreasonably withheld, the Borrower will not to the detriment of operating
      cash flow and the servicing of the amounts due under this
      Agreement:

            

    

     

    
      	
              (i)  

            	
              pay
      dividends or extraordinary benefits to directors and
    managers;

            

    

     

    
      	
              (ii)  

            	
              redeem
      or purchase any shares in its capital or take any steps to reduce
      its

            

    

     

    
      	
               
      

            	
              capital;

            

    

     

    
      	
              (ii)  

            	
              redeem
      or prepay any loan stock issued by it;
or

            

    

     

    
      	
              (iii)  

            	
              pay
      any directors' fees or other fees or expenses otherwise than, in
      each

            

    

     

    
      	
               
      

            	
              case,
      in the ordinary course of
business.

            

    

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    10.7             Reserved

     

    10.8             Restriction
on lending.

     

    The
Borrower will not make or agree to make, and will procure that the members of
the Group do not make or agree to make, available any loan or other financial
accommodation whatsoever to or for any person to the detriment of operating cash
flow and servicing of the amounts due under this Agreement.

     

    10.9Restrictions
on Capital Expenditure and Investments

     

    With the
exception of Capital Expenditure to be incurred in respect of the development of
PriceSmart San Fernando, the Borrower will not incur Capital Expenditure in any
financial year: (1) in a single transaction in excess of SEVEN HUNDRED AND FIFTY
THOUSAND US DOLLARS (US$750,000.00) or its equivalent in any other currency; or
(2) in multiple transactions combined in excess of TWO MILLION US DOLLARS
(US$2,000,000.00) or its equivalent in any other currency, and in any case not
to the detriment of operating cash flow and servicing of the amounts due under
this Agreement (including for the sake of clarity Capital Expenditure to be
incurred in respect of the development of PriceSmart San Fernando).

     

    10.10Transactions
with connected persons.

     

    Except
with the prior written consent of the Bank, such consent not to be unreasonably
withheld, the Borrower will not, and will procure that the members of the Group
do not, directly or indirectly:

     

    
      	
              (i)  

            	
              purchase,
      acquire or lease any property from, or sell, transfer or lease any
      property to, or otherwise have any dealings or enter into any transactions
      with, any connected person, except on terms no less favourable to such
      connected person than would apply in the case of arm's length contracts
      entered into in the ordinary course of
business;

            

    

     

    
      	
              (ii)  

            	
              make
      any loan or advance to any director, shareholder or subsidiary of the
      Borrower or guarantee the repayment of any loan made to any director,
      shareholder or subsidiary of the
Borrower;

            

    

     

    
      	
               
      

            	
              (iii)
      to the detriment of operating cash flow and servicing of the amounts due
      under this Agreement, repay any loan made to the Borrower by any director
      or shareholder or subsidiary agreed with the lender as being
      quasi-equity.

            

    

     

    10.11
Financial Statements

     

    The
Borrower will ensure that all audited financial statements prepared by it and
each member of the Group and delivered pursuant to this Agreement shall be
prepared in accordance with IFRS (as defined in Clause 10.12 below) as
applicable and which have been, consistently applied in respect of each
financial period or giving details of any inconsistency, on an individual and if
applicable consolidated basis and that such financial statements shall contain a
balance sheet giving a true and fair view of the state of affairs of the
Borrower and the members of the Group as at the end of the period
to

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    which
they relate and a profit and loss account giving a true and fair view of their
profit or loss for such period.

     

    10.12
Financial undertakings

     

    (1)              So
long as there remains any amount outstanding due to the Bank by the

     

     

    Borrower
hereunder the Borrower undertakes with the Bank that it shall procure
that:

     

    (a) the Debt
Service Coverage Ratio for PSMT shall not be less than 1.40:1;

     

    (b) Third
Party Debt to EBITDA for PSMT shall not exceed 3.0:1.

     

    (2)              All
calculations made at any time for the purposes of this Clause 10.12 shall
be

     

    made by
reference to the following:

     

    
      	
              (a)  

            	
              where such calculations
      relate to the date as at or to which financial statements of PSMT are
      prepared, the most recent such annual financial statements;

            

    

     

    
      	
              (b)  

            	
              where
      such calculations relate to a date on which half-yearly accounts or
      management accounts of PSMT are prepared, the most recent such
      semi­annual accounts; and

            

    

     

    
      	
               
      

            	
              (c) if
      the Bank in its discretion so decides, the then most recent certificate of
      officers of the Borrower delivered under Clause
  10.

            

    

     

    adjusted
in each case, as the Bank may in its discretion reasonably consider appropriate,
to take account of any changes in the financial condition or circumstances of
PSMT which occur after the date as at or to which such financial statements or
accounts were or certificate was prepared.

     

    (3) The
expressions used in this Clause 10.12 shall be construed in accordance with the
accounting principles applied in connection with the preparation of the
financial statements of PSMT for the year ended 2008 and subject thereto shall
otherwise be construed in accordance with international financial reporting
standards in Trinidad and Tobago, as appropriate, (in this clause referred to as
'IFRS') provided that

     

    
      	
              (a)  

            	
              'Debt
      Service Coverage Ratio' at any time means the ratio of (a) EBITDA to (b)
      the sum
      of (i) interest payable on, and amortization of debt discount in
      respect of, all Financial Indebtedness of or by PSMT, plus (ii) principal
      amounts of all Financial Indebtedness payable of or by PSMT for or during
      the next twelve (12) month period;

            

    

     

    
      	
              (b)  

            	
              `EBITDA'
      means (A) the sum of the net income (excluding any extraordinary and
      non-operating income and expenses including parent company charges for the
      preceding twelve (12) months) of PSMT for such period plus,
      (B) to the extent deducted in determining net income of PSMT for
      such period, the aggregate amount of (i) Interest Costs, (ii) income tax
      expense (including accrued income tax), (iii) depreciation expense, and
      {iv) amortization expense;

            

    

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
               
      

            	
              (d)
      'Interest Costs' means in relation to any financial period means the
      aggregate of all interest, fees, commissions, discounts (other than trade
      discounts) and other costs, charges or expenses accruing due from PSMT
      during such financial period in respect of Financial Indebtedness
      including without limitation:

            

    

     

    (i) capitalised
interest;

     

    (ii) the
portion of any payments under finance leases which exceeds the reduction of the
principal indebtedness under such leases resulting from such payments;
and

     

    (iii) the
amount by which the price payable on redemption of any debt securities issued by
PSMT exceeds the original issue proceeds thereof;

     

    less
interest (including capitalised interest) received by PSMT during such
period.

     

    (4) If
there is any dispute as to any computation under this Clause 10.12 or as to the
interpretation of any of the terms defined in this Clause 10.12, the decision of
the Bank shall, in the absence of manifest error, be conclusive and binding on
the parties to this Agreement.

     

    11             DEFAULT

     

    11.1           Events
of Default

     

    There
shall be an Event of Default if:

     

    
      	
              (a)  

            	
              the
      Borrower fails to pay any principal or interest any other sum due under
      this Agreement or any Related Document within three (3) Business Days of
      the due date thereof; or

            

    

     

    
      	
              (b)  

            	
              the
      Borrower commits any breach of any provision of Clauses
      10.1(2)

            

    

    
      	
               
      

            	
              10.2(a),
      10.2(f), 10.3 through 10.10, or 10.12;
or

            

    

     

    
      	
               
      

            	
              (c) the
      Borrower commits any material breach of any other provision of this
      Agreement or any Related Document and either such breach is in the
      reasonable opinion of the Bank not capable of remedy or such breach is in
      the reasonable opinion of the Bank capable of remedy and is not remedied
      within thirty (30) calendar days after the earlier of the date of notice
      by the Bank requiring such remedy or the date on which the Borrower first
      becomes aware of the breach; or

            

    

     

    
      	
               
      

            	
              (c)
      any representation or warranty made or deemed to be made or repeated by
      the Borrower in or pursuant to this Agreement or any Related Document is
      or proves to have been untrue or incorrect in any material respect when
      made or when deemed to be repeated with reference to the facts and
      circumstances existing at such time;
or

            

    

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
               
      

            	
              (d)
      any Financial Indebtedness of the Borrower is not paid when due or within
      any applicable grace period or becomes due or capable of being declared
      due prior to its stated maturity (and, in the case of a guarantee or an
      indemnity, is called) and is not, in the reasonable opinion of the Bank,
      being disputed promptly and in good faith;
or

            

    

     

    any
Encumbrance to secure any Financial Indebtedness of the Borrower becomes
enforceable; or

     

    an
encumbrancer takes possession or a receiver or administrative receiver or
manager or sequestrator is appointed of the whole or any substantial part of the
undertaking assets rights or revenues of the Borrower or a distress or other
process is levied or enforced upon any of the assets rights or revenues of the
Borrower and any such action is not lifted or discharged within thirty (30)
calendar days; or

    
      	
              (I)

            

    

     

    a
petition is presented to, or any order is made by, any competent court for the
appointment of an administrator in relation to the Borrower; or

     

    the
Borrower is, or is adjudicated or found to be, insolvent or stops or suspends
payment of its respective debts or is (or is deemed to be) unable to or admits
inability to pay its respective debts as they fall due or proposes or enters
into any voluntary arrangement or any composition or other arrangement for the
benefit of its creditors generally or proceedings are commenced in relation to
the Borrower under any law regulation or procedure relating to reconstruction or
adjustment of debts; or

     

    any
petition is presented by any person (other than a petition which, in the
reasonable opinion of the Bank, is frivolous or vexatious and which is withdrawn
or stayed within thirty (30) calendar days) or any order is made by any
competent court or any resolution is passed by the Borrower for its winding-up
or dissolution or for the appointment of a liquidator of the Borrower (except
for the purpose of a solvent amalgamation or reconstruction on terms and
conditions which shall have first been approved by the Bank); or

     

    the
Borrower ceases or threatens to cease to carry on the whole or a substantial
part of its business; or

     

    this
Agreement or any Related Document is or becomes (or is alleged to be) unlawful
or unenforceable in any respect; or

     

    any
Material Consent is withdrawn or revoked or expires or is modified or made
subject to any condition which in the reasonable opinion of the Bank may
materially and adversely affect the Borrower or its respective ability to
perform or comply with any of its respective obligations under this Agreement or
any Related Document; or

     

    
      	
               
      

            	
              (n)

            	
              the
      Borrower becomes a subsidiary of any other person or one person
      or

            

    

    
      	
               
      

            	
              more
      than one person acting in concert (within the meaning of
    The

            

    

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Takeovers
and Mergers By-Laws), not having such control at the date of this Agreement,
obtain(s) control (as defined in section 4 of the Companies Act Chap. 81:01) of
the Borrower; or

     

    
      	
               
      

            	
              (o)

            	
              the
      Guarantee of any Guarantor is not (or is alleged by such person not
      to

            

    

     

    
      	
               
      

            	
              be)
      valid and in full force and effect;
or

            

    

     

    
      	
               
      

            	
              (P)
      any event described in paragraphs (a) to (k) inclusive above or any
      analogous event occurs to or in respect of PSI, PSE, or any member of the
      Group; or

            

    

     

    
      	
               
      

            	
              (q)
      any other event or series of events or any circumstances whether related
      or not (including but without limitation any material adverse change in
      the financial, economic and political environment in Trinidad and Tobago,
      any adverse change in the business, assets or financial condition of the
      Borrower, PSI, PSE or any members of the Group, taken as a whole) occur(s)
      or arise(s) which, in the reasonable opinion of the Bank, may have a
      material adverse effect on the Borrower, PSI, PSE or any member of the
      Group, taken as a whole or its respective ability or willingness to
      perform or comply with any of its respective obligations under this
      Agreement and/or any Related Document (including but without limitation
      the obligations of the Borrower to make any payments under this Loan
      Agreement and the Related
Documents).

            

    

     

    11.2
Rights on a Default

     

    The Bank
may (without prejudice to any of its rights) upon and at any time after the
happening of an Event of Default (whether or notice of same shall have been
provided by the Borrower), so long as the same is continuing, by notice to the
Borrower declare that:

     

    
      	
              (a)  

            	
              the
      Commitment of the Bank and any obligation of the Bank to make any Advance
      shall be terminated, whereupon such Commitment shall be reduced to zero
      and such obligation shall be terminated forthwith;
  and/or

            

    

     

    
      	
              (b)  

            	
              the
      Loan has become immediately due and payable, whereupon the Borrower shall
      forthwith repay the same together with all interest accrued and all other
      sums payable under this Agreement;
and/or

            

    

     

    
      	
               
      

            	
              (c) the
      Loan has become due and payable on demand, whereupon the Loan and all
      interest and other sums payable under this Agreement shall at all times
      after such declaration be due and payable forthwith on
    demand.

            

    

     

    12
INDEMNITIES 12.1 Indemnities

     

    The
Borrower shall on demand indemnify the Bank against any liability, loss or
expense which the Bank shall certify as incurred by it as a consequence
of:

     

    
      	
               
      

            	
              (a)

            	
              any
      default in payment by the Borrower of any sum under this
      Agreement

            

    

     

    
      	
               
      

            	
              when
      due;

            

    

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
              (b)  

            	
              the
      occurrence of any Event of Default;

            

    

     

    
      	
              (c)  

            	
              any
      repayment of any Advance or part thereof being received otherwise than on
      a Payment Date;

            

    

     

    
      	
              (d)  

            	
              the
      early breaking, termination or reversing (in whole or in part) of any
      agreement or arrangement entered into by the Bank with the Borrower or any
      third party for the purpose of or in connection with fixing, capping the
      rate of or otherwise hedging interest payable under this Agreement;
      or

            

    

     

    
      	
              (e)  

            	
              any
      Advance not being made for any reason (excluding any default by the Bank)
      after a Drawdown Notice therefor has been
given

            

    

     

    including
in any such case, but not limited to, any loss of profit and any loss or expense
incurred in maintaining or funding the Loan or any Advance or other sum or in
liquidating or re-employing deposits from third parties acquired or contracted
for in order to effect or maintain the same.

     

    12.2
Currency

     

    If, under
any applicable law or regulation or pursuant to a judgment or order being made
or registered against or the liquidation of the Borrower or without limitation
for any other reason, any payment under or in connection with this Agreement is
made or falls to be satisfied in a currency (the 'payment currency') other than
the currency in which such payment is expressed to be due under or in connection
with this Agreement (the `contractual currency') then, to the extent that the
amount of such payment actually received by the Bank, when converted into the
contractual currency at the rate of exchange, falls short of the amount due
under or in connection with this Agreement, the Borrower, as a separate and
independent obligation, shall indemnify and hold harmless the Bank against the
amount of such shortfall. For the purposes of this Clause, the 'rate of
exchange' means the rate at which the Bank is able on or about the date of such
payment to purchase, in accordance with its normal practice, the contractual
currency with the payment currency and shall take into account (and the Borrower
shall be liable for) any premium and other costs of exchange including any Taxes
incurred by reason of any such exchange.

     

    13
TAXES

     

    13.1
Grossing up payments

     

    All
payments to be made by the Borrower under this Agreement shall be made free and
clear of and without deduction for or on account of Taxes unless the Borrower is
required to make such a payment subject to the deduction or withholding of
Taxes, in which case the amount payable by the Borrower in respect of which such
deduction or withholding is required to be made shall be increased to the extent
necessary to ensure that, after the making of such deduction or withholding, the
Bank receives and retains (free from any liability in respect of any such
deduction or withholding) a net amount equal to the sum which it would have
received and so retained had no such deduction or withholding been made or
required to be made.

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    13.2Notification

     

    If at any
time the Borrower is required by law to make any deduction or withholding from
any sum payable by it under this Agreement (or if subsequently there is any
change in the rates at which or the manner in which such deductions or
withholdings are calculated), it shall promptly notify the Bank upon becoming
aware of the same.

     

    13.3Tax
receipts

     

    If the
Borrower is required to make any deduction or withholding from any payment
hereunder, it shall pay the full amount required to be deducted or withheld to
the relevant taxation or other authority within the time allowed for such
payment under applicable law and shall deliver to the Bank within thirty (30)
calendar days after it has made such payment to the applicable authority an
original official receipt issued by such authority and any other appropriate
evidence of the payment to such authority of all amounts so required to be
deducted or withheld.

     

    13.4Indemnity

     

    The
Borrower shall indemnify and hold harmless the Bank against, and reimburse it on
demand, the amount of any Taxes so deducted withheld or accounted for and paid
by the Borrower whether or not such Taxes were correctly or legally assessed or
demanded.

     

    14            CHANGES
IN CIRCUMSTANCES

     

    14.1            Illegality

     

    If at any
time it is or becomes unlawful, or contrary to any request from or requirement
of any central bank or other fiscal monetary or other authority (whether or not
having the force of law), for the Bank to make fund or allow to remain
outstanding any Advance or part of the Loan, then the Bank shall promptly after
becoming aware of the same deliver to the Borrower a certificate to that effect
and:

     

    
      	
              (a)  

            	
              the
      Bank shall not thereafter be obliged to make any Advance and its
      Commitment shall be reduced to zero;
and

            

    

     

    
      	
              (b)  

            	
              if
      the Bank so requires, the Borrower shall not later than such date as the
      Bank shall have specified (such date not being earlier than seven (7)
      Business Days prior to the latest permitted date) repay each Advance
      together with accrued interest thereon and any other amounts then due to
      the Bank hereunder.

            

    

     

    15            GENERAL

     

    15.1            Set-off

     

    
      	
               
      

            	
              (1)
      The Bank may, without prior notice to the Borrower, apply any credit
      balance (whether or not then due and in whatever currency) which is at any
      time held by any office or branch of the Bank for the account of the
      Borrower in or towards satisfaction of any sum then due and payable from
      the Borrower under this

            

    

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Agreement
or any Related Document and in respect of which a default in payment has
occurred. The Bank will promptly notify the Borrower of such
application.

     

    
      	
               
      

            	
              (2)
      For the purposes of exercising any rights under this Clause, or any rights
      under the general law, the Bank may convert or translate all or any part
      of such a credit balance into another currency applying a rate which in
      its opinion fairly reflects prevailing rates of
  exchange.

            

    

     

    
      	
              [Missing Graphic Reference]

            

    

    The Bank
is not obliged to exercise any of its rights under this Clause, which shall be
without prejudice and in addition to any rights under the general
law.

     

    In this
Clause 'rights under the general law' means any right of set off, combination or
consolidation of accounts, lien or similar right which the Bank has under any
applicable law.

     

    15.2Assignment
and Facility Offices

     

    
      	
              (1)  

            	
              This
      Agreement shall be binding upon, and enure for the benefit of, each of the
      parties hereto and their respective successors and permitted assigns (and
      any person to whom the Bank shall transfer or novate any rights and/or
      obligations under this Agreement).

            

    

     

    
      	
              (2)  

            	
              The
      Borrower may not, without the prior written approval of the Bank, such
      approval not to be unreasonably withheld, assign or transfer any of its
      rights, benefits or obligations under this
  Agreement.

            

    

     

    
      	
              (3)  

            	
              Upon
      twenty-one (21) calendar days' prior written notice to the Borrower of any
      such intended assignment or transfer, the Bank may assign all or any part
      of its rights or benefits or transfer all or any part of its obligations
      under this Agreement or any Related Document. The Borrower shall enter
      into all documents specified by the Bank to be necessary to give effect to
      any such assignment or transfer.

            

    

     

    
      	
              (4)  

            	
              Upon
      twenty-one (21) calendar days' prior written notice to the Borrower of any
      such intended disclosure, the Bank may disclose on a confidential basis to
      any actual or potential assignee or transferee of any rights, benefits or
      obligations under this Agreement or any Related Document such information
      about the Borrower and its business and financial condition as the Bank
      shall reasonably consider
appropriate.

            

    

     

    
      	
               
      

            	
              (5) The
      Bank may at any time and from time to time change its facility office
      (being the office out of which it will make available and maintain its
      Commitment arid/or any Advance or any part thereof) in which event it will
      promptly give the Borrower notice
thereof.

            

    

     

    15.3Notices

     

    
      	
               
      

            	
              (1) Every
      notice or other communication under this Agreement shall be in writing and
      may be delivered personally or by letter or facsimile transmission
      despatched as follows:

            

    

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
            
	
            	
            

    

    
      	
            	
            

    

     

    
    

     

    
      	
              (a)  

            	
              if
      to the Bank, at its address specified at the head of this Agreement or to
      the following numbers:

            

    

     

    FirstCaribbean
International Bank (Trinidad & Tobago) Limited 74 Long Circular
Road

     

    Maraval

    Fax No. +
(868) 622-4989

    Attention:
The Managing Director

     

    
      	
              (b)  

            	
              if
      to the Borrower, at its address specified below or its registered
      or

            

    

     

    
      	
               
      

            	
              principal
      office for the time being or to the following
  numbers:

            

    

     

    PriceSmart
(Trinidad) Limited

    Corner
Endeavour Road and Narsaloo Ramaya Road, Chaguanas

    Facsimile
+ (868) 671-1865

    for the
attention of: The Regional Financial Controller

     

    With a
courtesy copy to: General Counsel

    PriceSmart,
Inc.

    9740
Scranton Rd, Ste. 125

    San
Diego, California USA 92121 Facsimile +(858) 404-8828

     

    or (in
any case) to such other address and/or facsimile number as may be notified in
accordance with this Clause by the relevant party to the other party for such
purpose.

     

    
      	
               
      

            	
              (2)
      Every notice or other communication shall, subject as otherwise provided
      in this Agreement, be deemed to have been received (if sent by post) 24
      hours after dispatch and (if delivered personally or by facsimile
      transmission) at the time of delivery or dispatch if during normal
      business hours in the place of intended receipt on a Business Day in that
      place and otherwise at the opening of business in that place on the next
      succeeding such Business Day, provided that any notice or communication to
      be made or delivered to the Bank shall be effective only on actual receipt
      by the Bank.

            

    

     

    15.4 Waivers

     

    No delay
or omission on the part of the Bank in exercising any right or remedy under this
Agreement shall impair that right or remedy or operate as or be taken to be a
waiver of it, nor shall any single partial or defective exercise by the Bank or
any such right or remedy preclude any other or further exercise under this
Agreement of that or any other right or remedy. The remedies provided in this
Agreement are cumulative and are not exclusive of any remedies provided by
law.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    15.5
Severance

     

    If at any
time any of the provisions of this Agreement is or becomes illegal, invalid or
unenforceable in any respect under any law or regulation of any jurisdiction,
neither the legality, validity and enforceability of the remaining provisions of
this Agreement nor the legality, validity or enforceability of such provision
under the law of any other jurisdiction shall be in any way affected or impaired
as a result.

     

    15.6
Counterparts

     

    This
Agreement may be executed in any number of counterparts in which case this
Agreement will be as effective as if all signatures on the counterparts were on
a single copy of this Agreement.

     

    15.7
Language

     

    All
notices or communications under or in connection with this Agreement (including
without limitation documents to be delivered pursuant to Clause 4.1) shall be in
English or, if in any other language, accompanied by a translation into English
cei Lified as the Bank may require. In the event of any conflict between the
English text and the text in any other language, the English text shall
prevail.

     

     

    
      15.8            Law
and jurisdiction

       

    

     

    
      

    

     

    
      (I)            This
Agreement shall be governed by and construed in accordance with
Trinidad

    

     

    

    
      	
            
	
            	
            

    

    
      	
            	
            

    

     

    
    

    and
Tobago law.

     

    
      	
              (2)  

            	
              The
      Borrower irrevocably agrees for the exclusive benefit of the Bank that the
      courts of Trinidad and Tobago shall have jurisdiction to hear and
      determine any suit action or proceeding, and to settle any disputes, which
      may arise out of or in connection with this Agreement and for such
      purposes hereby irrevocably submits to the jurisdiction of such
      courts.

            

    

     

    
      	
              (3)  

            	
              Nothing
      contained in this Clause shall limit the right of the Bank to take
      proceedings against the Borrower in any other court of competent
      jurisdiction, nor shall the taking of any such proceedings in one or more
      jurisdictions preclude the taking of proceedings in any other
      jurisdiction, whether concurrently or not (unless precluded by applicable
      law).

            

    

     

    
      	
               
      

            	
              (4)
      The Borrower irrevocably waives any objection which it may have now or in
      the future to the courts of Trinidad and Tobago being nominated for the
      purpose of sub-clause (2) above and agrees not to claim that any such
      court is not a convenient or appropriate
forum.

            

    

     

    AS WITNESS this
Agreement has been duly executed the day and year first above
written.

     

    [REMAINDER
OF THE PAGE INTENTIONALLY LEFT BLANK – SIGNATURES

     

    APPEAR
AFTER THE SCHEDULES]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    SCHEDULE
1

     

    Drawdown
Notice

    To:
FirstCaribbean International Bank {Trinidad & Tobago) Limited 74 Long
Circular Road

    Maraval

    For the
attention of: The Managing Director

    Date
[                        120[ 1

     

    Dear
Sirs,

     

    Loan Agreement dated
February L1 2009

     

    We wish
to draw down the Facility Amount under the above Loan Agreement as
follows:

     

    

    
      	
               

            	
              Drawdown
      Date: [                                          1 20[

              Amount
      due for Financing Costs: US$[

              Bank
      account to which balance of proceeds are to be
  paid:

            

    

     

    We
confirm that:

     

    
      	
              (a)  

            	
              the
      matters represented by us and set out in Clause 10 of the Loan Agreement
      are true and accurate on the date of this notice as if made on such date;
      and

            

    

     

    
      	
              (b)  

            	
              no
      Event of Default or Potential Default, each as defined in the Loan
      Agreement, has occurred and is continuing or would result from the drawing
      of the proposed Advance.

            

    

     

    Yours
faithfully,

     

    for and
on behalf of

     

    PRICESMART
(TRINIDAD) LIMITED

     

    By:                                             

     

    Name:

     

    Title:

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    SCHEDULE
2

     

    Conditions
Precedent

     

    In this
Schedule, 'certified' means certified by a director or another duly authorised
officer of the Borrower or other relevant company as being a true complete and
up-to-date copy as at a date no earlier than the date of this Agreement. Each of
the following, unless waived, must be delivered to the Bank or its counsel at or
before closing:

     

    (I)A
certified copy of the articles and by-laws and the register of members of the
Borrower.

     

    
      	
              (2)  

            	
              A
      certified copy of a resolution of the board of directors of the Borrower
      to be provided approving the terms of this Agreement and any Related
      Document required to be delivered under this Agreement to which it is
      expressed to be a party, authorising the person(s) executing the same to
      do so and authorising a person or persons to sign Drawdown Notices and all
      notices or other communications to be given or made by or on behalf of the
      Borrower under this Agreement or any such Related
  Document.

            

    

     

    
      	
              (3)  

            	
              A
      certified copy of a resolution of the board of directors of each Guarantor
      and a special resolution duly passed by its members in general meet;:lg,
      each approving any Related Document to which it is expressed to be a party
      and authorising the person or persons signing the same to do
      so.

            

    

     

    
      	
              (4)  

            	
              A
      certified copy of a solvency certificate issued by a duly authorised
      officer of each of the Borrower and the Guarantors confirming compliance
      with the provisions of Section 56 of the Companies
  Act.

            

    

     

    
      	
              (5)  

            	
              A
      specimen signature, authenticated to the satisfaction of the Bank, of each
      person

            

    

     

    
      	
               
      

            	
              authorised
      to sign by the resolutions referred to in paragraphs (2) and (4)
      above.

            

    

     

    
      	
              (6)  

            	
              Each
      fee payable pursuant to Clause 7 to the extent due and
      payable.

            

    

    
      	
              (7)  

            	
              All
      Security Instruments have been executed and delivered are valid and
      binding and in

            

    

    
      	
               
      

            	
              full
      force and effect.

            

    

     

    
      	
              (8)  

            	
              A
      current valuation PriceSmart Port-of-Spain prepared by a valuator
      acceptable to the Bank evidencing total market value of at least
      US$11,600,000.00 using cost, income and market value
    method.

            

    

     

    
      	
              (9)  

            	
              A
      report acceptable to the Bank from Nealco Real Estate Limited evidencing a
      market

            

    

     

    
      	
               
      

            	
              value
      of at least US$4,000,000 for PriceSmart - San Fernando using
      comparables.

            

    

     

    
      	
              (10)  

            	
              Evidence
      that all property taxes and other statutory payables related to the
      Properties and

            

    

     

    
      	
               
      

            	
              the
      Borrower are fully paid up and up to
date.

            

    

     

    
      	
              (11)  

            	
              Confirmation
      that the Loan does not exceed sixty-one percent (61%) of the
      combined

            

    

     

    
      	
               
      

            	
              market
      value of the Properties.

            

    

     

    
      	
              (12)  

            	
              The
      written consent of RBTT Bank Limited to the Loan and to the Security
      Interests

            

    

     

    
      	
               
      

            	
              created
      in respect thereof by the Borrower, PSMT and PSOL
      respectively.

            

    

     

    
      	
              (13)  

            	
              Submission
      of the lease agreement for PriceSmart Port-of-Spain with terms
      satisfactory

            

    

     

    
      	
               
      

            	
              to
      the Bank.

            

    

     

    
      	
              (14)

            	
              A
      certified copy of the latest (consolidated) audited annual financial
      statements of PSMT

            

    

     

    
      	
               
      

            	
              Trinidad/Tobago
      Limited.

            

    

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
              (15)  

            	
              The
      successful preparation, negotiation and execution of all necessary legal
      documentation to the satisfaction of the
Bank.

            

    

     

    
      	
              (16)  

            	
              The
      absence of any material change in the financial, political, economic or
      other conditions in Trinidad and Tobago that could, in the sole opinion of
      the Bank, affect the success of the Borrower or its ability to make any
      payments hereunder.

            

    

     

    
      	
               
      

            	
              (17)
      No material adverse market condition has occurred in the sole opinion of
      the Bank. In the event of such occurrence, the Bank will have the right to
      vary the terms or pricing of the financing provided in this Agreement if
      it determines that such changes would be advisable and necessary, but will
      consult with the Borrower prior to implementing any changes it deems
      necessary. The Borrower will have the right to withdraw from the
      transaction if the changes in the terms or pricing are not acceptable to
      it without incurring any incremental costs other than the Financial
      Costs.

            

    

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
3

     

    Form
of Collateral Mortgage – Invaders Bay

     

     

    Dated as
of February I 1,
2009

     

    Between

     

    PRICESMART
(TRINIDAD) LIMITED

     

    as
Borrower

     

    and

     

     

    FIRSTCARIBBEAN
INTERNATIONAL BANK (TRINIDAD) LIMITED

     

     

    as
Bank

     

     

    MORTGAGE

     

     

    of

     

     

    PrieeSmart
Port-of-Spain at Invaders Bay, Port-of-Spain

     

     

    COUNSEL
TO THE BANK

     

    M.
HAM•L-SMITH
& CO.

     

    ELEVEN
ALBION

     

    CORNER
ALBION & DERE STREETS

     

    PORT
OF SPAIN

     

    TEL+
(+)
1 868 821-5500

     

    FAX: (+)
1 868 627-8564

    EMAIL: MHSeTRINIDADLAW.COM

    0
2007-2009
M. HAMEL-SMITH & CO
-ALL RIGHTS RESERVED

     

     

    

    
      	
            	
            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    MORTGAGE

     

    Index to
clauses

     

    Definitions
and Interpretation

     

    Covenant
to Pay

     

    Security

     

    Discharge

     

    Restrictions

     

    Deposit
of Title Deeds

     

    Representation
and Warranties Covenants by the Borrower

    Environmental
Matters

     

    Power to
Remedy

     

    Enforcement
Events

     

    Enforcement

     

    Appointment
and Powers of Receiver Lender's Liability

     

    Protection
of Third Parties

     

    Power of
Leasing

     

    Power of
Attorney'

     

    Lender's
Rights

     

    Costs and
Expenses

     

    Continuing
Security

     

    Set-Off

     

    Notices

     

    Transfers

     

    Miscellaneous

     

    Law and
Jurisdiction

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    TRINIDAD
AND TOBAGO

     

     

    This
Mortgage was prepared by me

     

    M. Glenn
Hamel-Smith

    Attorney
at Law

    in the
firm of M. Hamel-Smith & Co.

    Eleven
Albion

    Corner
Albion & Dere Streets

    Port of
Spain

    Trinidad

    Admission
No. HAM2003004

     

    MORTGAGE

     

    THIS MORTGAGE is
dated the I I
day of [                                                                                                                                          2009
and made BETWEEN:

     

    
      	
              (1)  

            	
              PRICESMART (TRINIDAD) LIMITED
      a company with limited liability incorporated under the Companies
      Act, 1995 (Ch. 81:01 of the laws of Trinidad and Tobago) with company
      number P 1916 (95) A and having its registered office at Endeavour Road
      and Narsaloo Ramaya Road, Chaguanas, in the island of Trinidad (the
      `Borrower'); and

            

    

     

    
      	
              (2)  

            	
              FIRSTCARIBBEAN INTERNATIONAL
      BANK (TRINIDAD & TOBAGO) LIMITED a bank licensed
      under the Financial Institutions Act, 1993 (as amended) and incorporated
      as a company with limited liability under the Companies Act Chap. 81:01
      of

            

    

     

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    the
revised laws of Trinidad and Tobago and having its registered office at 74 Long
Circular Road, Maraval, Trinidad (the 'Bank')

     

    RECITALS:

     

    
      	
              A.  

            	
              This
      Mortgage is supplemental to a Loan Agreement dated on even date and made
      between the Bank and the Borrower (the 'Loan Agreement') whereunder the
      Bank has agreed to lend to the Borrower the sum of up to NINE MILLION FIVE
      HUNDRED THOUSAND US DOLLARS (US$9,500,000) upon the terms and conditions
      set out in the Loan Agreement.

            

    

     

    
      	
              B.  

            	
              It
      is a condition of the Loan Agreement that, inter alia, the Borrower would
      grant this Mortgage to secure the obligations of the Borrower and it is
      intended that this Mortgage would be stamped with nominal fixed stamp duty
      of TWENTY-FIVE TT DOLLARS (TT$25) collateral to the Loan Agreement which
      is to be stamped under the bond/covenant head of stamp
    duty.

            

    

     

    NOW THIS DEED WITNESSES
and it is agreed and declared as follows:

     

    DEFINITIONS
AND INTERPRETATION

     

    Unless
the context otherwise requires or unless otherwise defined in this Mortgage,
words and expressions shall have the same respective meanings that are ascribed
to them in the Loan Agreement.

     

    Definitions

     

    In this
Mortgage

     

    "Advance"
means the sum of NINE MILLION FIVE HUNDRED THOUSAND US DOLLARS (US$9,500,000)
now advanced by the Bank to the Borrower (the receipt of which sum the Borrower
hereby acknowledges).

    
      
        
          
            	
                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    "Agreement
for Lease" means all present and future agreements, contracts, options or
undertakings for or in relation to the creation of any estate, interest or right
in or over the Properties (including, without limitation, in relation to any
lease, licence, tenancy or right to occupy whether on a fixed term or periodic
basis).

     

    "CLPA"
means the Conveyancing and Law of Properties Act (Chap.56:01).

     

    "Default
Rate" has the meaning assigned to that term in clause 1.1 of the Loan
Agreement.

     

    "Encumbrance"
means any mortgage charge pledge lien assignment hypothecation security interest
preferential right or trust arrangement or other encumbrance security agreement
or arrangement of any kind or any right conferring a priority of
payment.

     

    "Enforcement
Event" means each and every Event of Default as defined in the Loan
Agreement.

     

    "Environmental
Claim" means any notice or claim from any person (including, without limitation,
any regulatory authority or government agency) alleging any breach,
contravention or violation of any Environmental Law by the Borrower or the
existence of any liability arising from any such breach, contravention or
violation, including, without limitation, liability to conduct, pay for or for
damages in respect of any investigation or audit, clean-up, remediation,
administrative cost or charge or expense, damage to the environment or any
natural resource, property loss or damage, personal injury or any penalty
attaching or relating to the presence, emission, release or leak of any
harmful  or hazardous material in or to the environment.

     

    "Environmental
Laws" means all laws, directions, regulations, codes of practice, guidance
notes, circulars (in the case of guidance notes and circulars having the force
of law) and the like concerning the protection of the environment, human health
or working conditions, including without limitation the conservation of natural
resources, the production, storage, transportation, treatment, recycling or
disposal of any waste or any noxious, offensive or dangerous substance or the
liability of any person whether civil or

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    criminal
for any damage to or pollution of the environment or the rectification thereof
or any related matters.

     

    "Environmental
Licence" means any permit, licence, authorisation, consent or other approval
required by any Environmental Law.

     

    "Expenses"
means all interest commission fees and legal and other costs charges and
expenses which the Bank or any Receiver may charge or incur in relation to the
Borrower or this Mortgage and the preparation negotiation and creation of this
Mortgage and/or in relation to the Properties and/or breach of any provision of,
and the protection realisation or enforcement of, this Mortgage in each case on
a full indemnity basis.

     

    "Insured
Risks" means fire storm lightning earthquake explosion aircraft riot civil
commotion malicious damage impact terrorism aircraft and other aerial devices or
articles dropped therefrom tempest flood bursting and overflowing of water tanks
apparatus or pipes and damage by or resulting from vehicular impact subsidence
and such other risks as the Bank shall from time to time reasonably
require.

     

    "Interest
Rate" has the meaning assigned to that term in clause 1.1 of the Loan
Agreement.

     

    "Lease"
means in the case of the Leasehold Properties the sub-lease under which the
Borrower holds the Properties short particulars of which are set out at in Part
2 of Schedule 2 and any instrument supplemental to it or which is expressed to
be collateral to it or entered into pursuant to or in accordance with its
terms.

     

    "Leasehold
Properties" means the property described in Part 1 of Schedule 1 together with
the benefit of the right and liberties described in Part 3 of Schedule 1 (the
"Rights and Liberties") but subject to and with the benefit of the covenants,
conditions and restrictions set out in deed dated 27th May
2003 registered as No. DE2003 0225 7253 D001 and made between Trinbago
Commercial Development Company Limited and the Borrower (the "Deed of Covenants
Conditions and Restrictions").

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
    

    "Loan
Agreement" means the loan agreement of even date and made between the parties
hereto and any variation, amendment, restatement or extension thereof or
supplement thereto from time to time in force.

     

    "Mortgage"
means this mortgage and includes any instrument supplemental to or which is
expressed to be collateral or entered into pursuant to or in accordance with the
terms of this mortgage.

     

    "Planning
Acts" means the Town and Country Planning Act (Chap.35:01) and all regulations
and orders made or confirmed under any of them.

     

    "Properties"
means the Leasehold Property together with all immovable properties thereon and
any part or parts of each of them and including all rights attached or
appurtenant to them and all buildings fixtures fittings plant and machinery from
time to time situate on them and belonging to the Borrower.

     

    "Receiver"
means an administrative receiver, receiver and/or manager and any substitute for
any such person and whether appointed under this Mortgage or pursuant to any
statute or otherwise.

     

    "Rental
Income" means the gross rents licence fees and other moneys receivable now or
hereafter at any time by the Borrower in respect of or arising out of any lease
of the Properties or any agreement for lease or otherwise without limitation
derived by the Borrower from the Properties or otherwise paid to or received by
the Borrower in respect of the Properties (including without limitation all
mesne profits) but save for insurance rents or service charges or the
like.

     

    "Repayment
Date" has the meaning assigned to that term in the Loan Agreement.

     

    "Secured
Liabilities" means the Advance and the Expenses and all interest which the Bank
may charge or incur in relation to the Borrower or this Mortgage or the
enforcement of this Mortgage or the Properties on a full indemnity basis and so
that interest shall be computed and compounded on the terms agreed between the
parties or if

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    not
agreed according to the usual practice of the Bank as well after as before any
demand or judgment.

     

    "TT
Dollars", "TT$" or "TTD" means the lawful currency from time to time of the
Republic of Trinidad and Tobago.

     

    Interpretation

     

    In this
Mortgage:

     

    (a) references
to Clauses and Schedules are to be construed as references to the clauses of and
schedules to this Mortgage;

     

    (b) references
to any provisions of this Mortgage or to any other document or agreement are to
be construed as references to those provisions or that document or agreement as
is in force for the time being and as amended, varied, supplemented, substituted
or novated from time to time;

     

    (c) words
importing the singular are to include the plural and vice versa;

     

    (d) references
to a person are to be construed to include references to a corporation, firm,
company, partnership, joint venture, unincorporated body of persons, individual
or any state or any agency of a state, whether or not a separate legal
entity;

     

    (e) references
to any person are to be construed to include that person's assigns or
transferees or successors in title, whether direct or indirect;

     

    (f) references
to any statutory provision are to be construed as references to that statutory
provision as amended, supplemented, re-enacted or replaced from time to time
(whether before or after the date of this Mortgage) and are to include any
orders regulations instruments or other subordinate legislation made under or
deriving validity from that statutory provision;

     

    (g)             Clause
headings are for ease of reference only and are not to affect the

     

    interpretation
of this Mortgage.

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    COVENANT
TO PAY

     

     

    The
Borrower covenants with the Bank that the Borrower will:

     

    
      	
              (i)  

            	
              repay
      the Advance by specified instalments on each Payment Date as provided in
      the Loan Agreement and the balance due by a single balloon payment on the
      Repayment Date;

            

    

     

    
      	
              (ii)  

            	
              pay
      interest on the amount of the Advance for the time being and from time to
      time outstanding from the date of the Advance at the Interest Rate (before
      and after any demand made or judgment obtained) such interest to accrue
      from day to day and shall be payable with the instalments of principal on
      each Payment Date;

            

    

     

    (iii)pay
to the Bank or discharge any other Secured Liability on demand.

     

    If any
payment falls due under this Mortgage on any day on which the Bank is not open
for business in Trinidad and Tobago and banks are not generally open for
business in New York or other place of payment, the due date for payment shall
be extended to the next such Business Day and interest shall be adjusted
accordingly.

     

    If the
Borrower fails to repay the Advance or any part thereof or interest thereon or
to pay to the Bank or discharge any other Secured Liability when due, the
Borrower shall pay to the Bank on demand interest on that sum at the Default
Rate in the case of Expenses from the date on which the relevant Expense was
incurred and in the case of any other Secured Liability from the date on which
the Secured Liability became due until payment or discharge (both before and
after judgment) which interest shall accrue from day to day and may be
compounded in (accordance with the usual practice of the Bank) to the extent
that it shall remain unpaid.

     

    SECURITY

     

    In
further pursuance of the said agreement and for the consideration aforesaid and
as a continuing security for the payment and discharge of the Secured
Liabilities the Borrower as beneficial owner:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
               
      

            	
              HEREBY
      ASSIGNS unto the Bank ALL AND SINGULAR the Leasehold Properties together
      with the buildings thereon and the appurtenances thereto belonging,
      including the Rights and Liberties, TO HOLD the same unto the Bank for all
      the residue now unexpired of the term of years granted by the Lease
      subject to the payment of the rent thereby reserved, the observance and
      performance of covenants, conditions and agreements on the part of the
      Lessee therein contained and the provisions of the Deed of Covenants
      Conditions and Restrictions;

            

    

     

    HEREBY
CHARGES:

     

    
      	
              (a)  

            	
              By
      way of assignment, the Rental Income and the benefit to the Borrower of
      all other rights and claims to which the Borrower is now or may in the
      future become entitled in relation to the Properties including but not
      limited to all rights and claims of the Borrower against all persons who
      now are or have been or may become lessees, sub­lessees, licensees or
      occupiers of the Properties and all guarantors and sureties for the
      obligations of such persons

            

    

     

    
      	
              (b)  

            	
              By
      way of assignment:

            

    

     

    
      	
              (i)  

            	
              the
      benefit of all Agreements for Lease, all the proceeds of any claim, award
      or judgment arising out of any Agreement for Lease and all sums paid or
      payable to the Borrower under or in respect of any Agreement for
      Lease;

            

    

     

    
      	
              (ii)  

            	
              all
      right, title and interest of the Borrower in and to all payments made
      under any and all present and future insurance policies in respect of the
      Properties,

            

    

     

    subject
in all cases to the proviso for redemption hereinafter contained and provided
that nothing in these sub-clauses shall constitute the Bank as a mortgagee in
possession.

     

    The
Borrower shall at any time on written demand by the Bank procure that the Rental
Income shall be paid directly to its account with the Bank (or such other
account as the Bank may from

     

     

    

    
      	
            	
            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    time to
time direct) and the Borrower shall forthwith upon any such demand so instruct
its lessees and occupiers of the Properties by notice in writing. Following any
such demand until such payment the Borrower shall hold all Rental Income on
trust for the Bank.

     

    The
Borrower shall at any time on written demand by the Bank execute as security for
the payment or discharge of the Secured Liabilities a letter of set-off charge
or other security agreement or instrument over or in respect of any balance from
time to time standing to the credit of any account or accounts referred to in
clause 3.2 in such form as the Bank may require and such document or instrument
shall be prepared completed and registered by or on behalf of the Bank at the
cost of the Borrower.

     

    The
Borrower shall promptly on demand and at its own cost execute and do all such
assurances acts and things including without limitation execute all transfers
conveyances assignments and assurances of the Properties and give all notices
orders and directions which the Bank may require for perfecting or protecting
this Mortgage or the priority of this Mortgage or for facilitating the
realisation of the Properties or the exercise of any of the rights vested in the
Bank or any Receiver.

     

    DISCHARGE

     

    If the
Borrower shall pay to the Bank the Secured Liabilities in accordance with the
covenants contained in this Mortgage the Bank at the request and cost of the
Borrower will duly discharge this Mortgage and re-assign the Leasehold
Properties to the Borrower or as it may direct.

     

    RESTRICTIONS

     

    The
Borrower shall not without the prior written consent of the Bank, such consent
not to be unreasonably withheld:

     

    (a) create or permit to subsist
or arise any Encumbrance or any right or option on the Properties or any part
thereof. Subject as aforesaid, any mortgage of or charge on the Properties
created by the Borrower (otherwise than in favour of the Bank) shall be
expressed to be subject to this Mortgage;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    (b) sell,
convey, assign or transfer the Properties or any interest therein or otherwise
part with or dispose of any Properties or assign or otherwise dispose of any
moneys payable to the Borrower in relation to the Properties or agree to do any
of the foregoing;

     

    (c) exercise
any of the powers of leasing or agreeing to lease vested in or conferred on
mortgagors by common law or by statute or accept the surrender of any lease,
underlease or tenancy or agree to do any of the foregoing;

     

    (d) part
with or share possession or occupation of the Properties or any part of it or
grant any tenancy or licence to occupy the Properties or agree to do any of the
foregoing;

     

    DEPOSIT
OF TITLE DEEDS

     

    During
the continuance of this security the Bank shall be entitled to hold all deeds
and documents of title relating to the Properties and (if required by the Bank)
copies of all policies of insurance in relation to the Properties.

     

    REPRESENTATION
AND WARRANTIES

     

    The
Borrower represents and warrants to the Bank (and such representations and
warranties shall be deemed to be repeated on each day until all Secured
Liabilities are fully and unconditionally paid or discharged) that:

     

    (a) it is the
legal and beneficial owner of the Properties;

     

    (b) there
subsists no breach of any law or regulation which materially and

     

    adversely
affects or would affect the value of the Properties;

     

    (c) there are
no covenants, agreements, stipulations, reservations, conditions, interests,
rights or other matters whatsoever which materially and adversely affect the
Properties;

     

    (d) nothing
has arisen or has been created or is subsisting which would be an overriding
interest over the Properties;

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    (e) no
facility necessary for the enjoyment and use of the Properties is enjoyed on
terms entitling any person to terminate or curtail its use;

     

    (f) it has
not received notice of any adverse claim by any person in respect of the
ownership of the Properties or any interest in it, nor has any acknowledgement
been given to any person in respect of the Properties; and

     

    (g) to
the best of its knowledge, no waste or noxious, offensive or dangerous substance
has been used, disposed of, produced, stored or deposited under, on or in, or
emitted from the Properties.

     

    COVENANTS
BY THE COMPANY

     

    The
Borrower covenants with the Bank at all times during the continuance of tEs
security:

     

    (a) Repair
To keep the buildings installations and structures (whether fully built
or in course of construction) and all fixtures and fittings therein or thereon
and other erections from time to time upon the Properties in good and
substantial repair and condition(fair wear and tear excepted in the case of
plant and machinery) and fully protected from damage or deterioration as a
result of weather or malicious damage or any other cause and to replace any
fixtures and fittings which have become worn out or otherwise unfit for use by
others of a like nature and equal value.

     

    (b) Insurance
To insure and keep insured the Properties against loss or damage by the
Insured Risks to its full replacement value from time to time together with
value added tax architects surveyors and other professional fees in such amounts
as the Bank shall from time to time reasonably require and the costs and
expenses of preparing the site including shoring up demolition and site
clearance and loss of rents payable by the tenants or other occupiers of any
Properties for a period of twelve months, to be renewable annually, or for such
longer period as the Bank shall from time to time reasonably require in such
office or offices and on such terms as the Bank shall approve including
a

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    mortgagees
protection clause and such other provisions for the protection of the Bank as it
may require with the Bank's interest noted on the policy;

     

    (ii) to
maintain such insurance over the stock in trade from to

     

    time upon
the Properties as the Bank shall reasonably require;

     

    (iii) to
maintain in such office or offices as the Bank shall approve such insurance in
respect of employers' liability public liability as the Bank shall reasonably
require;

     

    (iv) punctually
to pay all premiums (and other moneys) in respect of such insurances and on
demand to deliver to the Bank the policy or policies of all such insurances and
the receipt for every such payment and all moneys received under any policy or
policies of insurance, other than in respect of payments of up to FIVE HUNDRED
THOUSAND US DOLLARS (US$500,000) on claims made under any policy, whether
maintained or effected by the Borrower, the Bank or by a third party and whether
or not in pursuance of the Borrower's obligations under this Mortgage shall be
applied, at the Bank's option, but subject to the rights of any lessor under the
Lease either in making good the loss or damage to the subject Properties (any
deficiency being made good by the Borrower) or towards the discharge of the
Secured Liabilities and any such moneys received by the Borrower shall be held
by the Borrower on trust for the Bank accordingly;

     

    (v) to comply
with the terms and conditions of any policy of insurance on the Properties or
otherwise contemplated by this Clause and not to do or omit to do anything
whereby any such insurance may become void or voidable wholly or in
part.

     

    (c)Outgoings
To pay when due all rents, rent charges (if any), rates,
taxes,

     

    charges,
duties, assessments, impositions and other outgoings whatsoever
charged

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    assessed
levied or imposed upon the Properties or upon the owner or occupier thereof or
payable in respect of the Properties.

     

    (d) Covenants and stipulations To
perform and observe all covenants, restrictions, stipulations, provisions,
regulations, conditions and agreements affecting the Properties or the use or
enjoyment of it.

     

    (e) Alterations Not without the
previous written consent of the Bank not to be unreasonably withheld or delayed
to demolish pull down remove or permit or suffer to be demolished pulled down or
removed any building installation or structure for the time being upon the
Properties or except in connection with the renewal or replacement thereof any
fixtures or erect or make or suffer to be erected or made on the Properties any
building' installation structure or material alteration or a change of use
thereof within the meaning of the Planning Acts or otherwise commit any waste
upon or destroy or injure in any manner or by any means lessen or suffer to be
lessened to any material extent the value of the Properties.

     

    (f) Reserved

     

    (g) Planning

     

    (i) to comply
in all respects with the Planning Acts and all licences, consents, permissions
or conditions granted or imposed thereunder;

     

    (ii) not
without the prior consent of the Bank such consent not to be unreasonably
withheld to enter into or agree to enter into any agreement under the Planning
Acts;

     

    (iii) to
comply with the requirements of any valid enforcement notice or other notice or
order (whether issued under the Planning Acts or any other statute) within such
time as may be specified therein or if no time is specified within such period
as may be reasonably required by the

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Bank and
to pay to the Bank in reduction of the Secured Liabilities any compensation
received as a result of any such notice or order.

     

    
      	
              (h)  

            	
              Right of entry To
      permit representatives of the Bank with or without workmen or others to
      enter the Properties at all reasonable times after at least twenty-four
      hours prior notice except in case of emergency to view the state of repair
      and condition of the Properties.

            

    

     

    (i) Statutory Notices Within ten
(10) calendar days of the receipt of notice of the same by it give full
particulars to the Bank of any notice, order, direction, designation, resolution
or proposal having specific application to the Properties or to the area in
which it is situate given or made by any planning authority or other public body
or authority whatever oi in pursuance of the powers conferred by any other
statute and to comply immediately with the terms thereof or if the Bank so
requires or approves and at the Borrower's cost to make such objections or
representations against or in respect of such notice or order as the Bank may
reasonably require and any compensation received by the Borrower as a result of
any such notice or order shall in the Bank's absolute discretion be applied in
reduction of the Secured Liabilities.

     

    (j) Information On request to
produce to or provide for the Bank such documents or information relating to the
Properties or its development as the Bank may reasonably require and promptly
deliver to the Bank a copy of any notice or proceedings served by any person on
the Borrower relating to any Properties or alleging any breach of any
obligations relating to any Properties.

     

    (k) Statutes To comply in all
material respects with all obligations imposed under any present or future
statute regulation order or instrument or under any bye-laws regulations or
requirements of any competent authority or approvals licences or consents
relative to the Properties or its use or enjoyment.

     

    (1)             Leases In the case of the
Leasehold Properties or subject to any lease,

     

     

    Agreement
for Lease or tenancy (referred to below as the 'occupational
lease'):

     

     

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    (i) to
perform and observe all covenants and conditions contained in the Lease to be
perfoiiued and observed by the lessee and contained in any occupational lease to
be observed by the lessor;

     

    (ii) to
enforce the due observance and performance of all obligations of all other
parties to the Lease and any occupational lease;

     

    (iii) not to
waive, release or vary any of the terms of the Lease or any occupational lease,
or to accept any surrender of any occupational lease or exercise any power to
determine or extend the same or grant any consent or licence or conclude any
rent review under the same without, in each case, the consent of the Bank which
consent is not to be unreasonably withheld or delayut in circumstances in which
the Borrower may not unreasonably withhold or delay its consent;

     

    (iv) if any
proceedings shall be commenced for forfeiture of the Lease or any superior lease
or the landlord or any superior landlord shall attempt to re-enter under the
provisions of the Lease or any superior lease the Borrower shall give immediate
notice of such event in writing to the Bank and at the request of the Bank and
at the expense of the Borrower take such steps as the Bank may in its absolute
reasonable discretion require.

     

    (m) Indemnity To keep the Bank
(and any Receiver appointed by the Bank) fully and effectively indemnified from
and against all actions, proceedings, costs, charges, claims, demands, expenses
and liabilities (including Value Added Tax and any other taxes and/or legal and
other professional fees) whatsoever in respect of any breach or non-observance
or non-performance of any covenants obligations warranties or undertakings on
the part of the Borrower contained in this Mortgage or the making good of any
such breach or non-observance or non­performance.

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    (n) Not to prejudice value not to
do or cause or permit to be done anything which may depreciate, jeopardise or
otherwise prejudice the value to the Bank of the Properties or incur any
expenditure or liability of an exceptional or unusual nature;

     

    (o) Overriding interests not
without the prior written consent of the Bank to permit any person to become
entitled to any proprietary right or interest which might negatively affect the
value of the Properties hereby mortgaged.

     

    ENVIRONMENTAL
MATTERS

     

    The
Borrower covenants with the Bank that during the continuance of this security
the Borrower shall at all times acquire and maintain all relevant Environmental
Licences required by its ownership, use or occupation of the Properties and for
the conduct of its business and will comply with all terms and conditions
relating thereto and with all other applicable Environmental Laws and will not
knowingly do or permit any act or omission whereby any such Environmental
Licence would be liable to be varied or revoked;

     

    promptly
upon receipt of the same to notify the Bank of any Environmental Claim, other
than an Environmental Claim of a frivolous nature by an individual not
representing a government authority or regulatory body;

     

    the
Borrower will keep the Bank (and every Receiver, attorney, manager, agent and
other person duly appointed by the Bank hereunder) fully and effectually
indemnified from and against all liabilities, losses (including consequential
losses), costs, charges and expenses caused wholly or partly, directly or
indirectly by:

     

    (a) the
creation, imposition, recording or registration of any mortgage, charge,
encumbrance or security interest over the Properties securing the reimbursement
to or recovery by any third party (including, without limitation, any regulatory
authority or government agency) of any costs, expenses or other sums incurred in
consequence of a breach, contravention or violation of any Environmental Law or
the release, discharge or emission of any harmful or hazardous material and
the

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    redemption,
removal, vacation or discharge of any such mortgage, charge, encumbrance or
other security interest;

     

    (b) the
making of any Environmental Claim against the Bank and/or any Receiver or other
such person(s) or the Borrower in respect of the Properties and/or any business
operations or activities thereon;

     

    (c) any
liability or potential liability upon the Bank and/or any Receiver or other such
person(s) to remedy, clean-up or make good any breach, contravention or
violation of any Environmental Law by the Borrower or any harm, actual or
potential, to the environment caused directly or indirectly by any release,
emission or discharge of any harmful or hazardous material from in or to the
Properties; and/or

     

    (d)             by
reason of any breach of paragraph 9.1 above.

     

    POWER TO
REMEDY

     

    If any
building operations on the Properties are not carried out in a proper and
workmanlike manner and with diligent progress to the reasonable satisfaction of
the Bank or its agent the Bank may (but shall not be under any obligation so to
do) serve a written notice on the Borrower advising it of such failure and the
Borrower shall have such period as the Bank may reasonably specify to remedy the
same failing which:

     

    (a) the
Borrower shall if required by written notice from the Bank within seven (7)
calendar days assign to the Bank or as it may direct all the benefit and
interest of the Borrower in any building contract sub-contract appointment of
professional advisers and such other contracts or agreements as the Borrower may
have relating to such building operations and will take or procure such action
as is necessary or desirable to provide the Bank or the nominee of the Bank as
aforesaid with privity of contract with such parties or contractors with whom
the Borrower may have privity of contract and take all such other steps as Bank
may

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    reasonably
require to enable the Bank to procure the completion of the said building
operations; and

     

    (b)            the
Borrower shall permit the Bank at the Borrower's cost to complete
or

     

    procure
the completion of the said building operations

     

    in both
cases with power for the Bank and any persons authorised by the Bank to enter
upon the Properties for any of the above purposes without thereby becoming a
mortgagee in possession.

     

    If the
Borrower fails to perform or observe any covenant or condition in its part
contained in this Mortgage, it shall be lawful for but not obligatory upon the
Bank in order to make good such failure in whole or in part and at the
Borrower's cost:

     

    (a) to enter
upon the Properties and effect such repairs and other works thereon as the Bank
considers necessary; and/or

     

    (b) to take
such steps, give such notices, execute such works and do such things as the Bank
considers necessary to comply with any requirements of or any notice, order,
direction permission or proposal, given, served or made under the Planning Acts
or otherwise affecting or likely to affect the Properties or its value;
and/or

     

    (c)            to
insure and keep insured the Properties in such amount and in such

     

    manner as
the Bank considers necessary; and/or

     

    (d) to
admit, settle, liquidate, compound
or contest in such manner as the Bank thinks fit any claim or liabilities in
relation to the Properties whether or not the Bank is expressly indemnified in
this Mortgage against the same and to make such payments and expend or debit on
account such moneys as the Bank considers necessary in that behalf but without
thereby becoming a mortgagee in possession.

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    ENFORCEMENT
EVENTS

     

    If any
Enforcement Event occurs then the Secured Liabilities shall become immediately
due and payable at any time on demand by the Bank and the Bank shall cease to be
under any further obligation to the Borrower.

     

    ENFORCEMENT

     

    The
Secured Liabilities shall be deemed for the purposes of all powers implied by
statute to have become due and payable within the meaning of Section 39 of the
CLPA immediately on the execution of this Mortgage and Section 41 of the CLPA
(restricting the power of sale) Section 47 of the CLPA (restricting the power to
appoint a receiver) and Section 35 of the CLPA (restricting the right of
consolidation) shall not apply to this Mortgage.

     

    APPOINTMENT
AND POWERS OF RECEIVER

     

    At any
time after the Bank shall have demanded payment of any of the Secured
Liabilities or after any breach by the Borrower of any of the provisions of this
Mortgage or the occurrence of an Enforcement Event or if requested by the
Borrower, the Bank may appoint by writing any person or persons (whether an
officer of the Bank or not) to be a Receiver of all or any part of the
Properties and where more than one Receiver is appointed they may be given power
to act either jointly or severally.

     

    The Bank
may from time to time determine the remuneration of the Receiver and may remove
the Receiver and appoint another in his place.

     

    The
Receiver shall (so far as the law permits) be the agent of the Borrower (who
shall alone be personally liable for his acts, defaults, omissions and
remuneration) and shall have and be entitled to exercise all powers conferred by
the CLPA in the same way as if the Receiver had been duly appointed thereunder
and in addition to, but without limiting any general powers referred to above
(and without prejudice to any of the Bank's powers) the Receiver shall have
power in the name of the Borrower or otherwise to do the following things,
namely:

     

    (a)            to
take possession of collect and get in all or any part of the Properties
and

     

    for that
purpose to take any proceedings as he shall think fit;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b) to
commence and/or complete any building operations on the Properties and to apply
for and obtain any planning permissions, building regulation approvals and any
other permissions, consents or licences in each case as he may in his absolute
discretion think fit;

     

    (c) for the
purpose of exercising any of the rights, powers, authorities and discretions
conferred on him by or pursuant to this Mortgage or for any other purpose to
borrow moneys from the Bank or others on the security of the Properties or
otherwise on such terms as he may in his absolute discretion think
fit;

     

    (d) to
provide such facilities and services for tenants and generally to
manage

     

    the
Properties in such a manner as he shall think fit;

     

    (e) if the
Properties is leasehold to vary the terms of or surrender the lease and/or to
take a new lease of it or of any part of it on such terms as he shall think fit
and so that any such new lease shall ipso facto become charged to the Bank on
the terms of this Mortgage so far as applicable and to execute a formal legal
Mortgage over any such new lease in favour of the Bank in such form as the Bank
may reasonably require;

     

    (f) to sell,
transfer, assign, let or lease or concur in selling, letting or leasing the
Properties (either by public auction or private contract or otherwise) and the
grant of any rights over the Properties on such terms and conditions and for
such consideration including without limitation shares, securities (of any other
company) or other investments payable at such time or times as he may in his
absolute discretion think fit;

     

    (g) to vary
the terms of, terminate, grant renewals of or accept surrenders of leases or
tenancies of the Properties in such manner and for such terms with or without a
premium or other compensation or consideration including the payment of money to
a lessee or tenant on a surrender with such rights relating to other parts of
the Properties and containing such covenants on the part of the
Borrower

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    or
otherwise and generally on such terms and conditions as in his absolute
discretion he shall think fit;

     

    (h) to
make any arrangements or compromise which the Bank or he shall think fit whether
in relation to any lease of the Properties or to any covenants, conditions or
restrictions relating to the Properties or without limitation
otherwise;

     

    (1)to
make and effect all repairs and improvements to the Properties;

     

    (j) to enter
into bonds, covenants, commitments, guarantees, indemnities and like matters and
to make all payments needed to effect, maintain or satisfy the same in relation
to the Properties;

     

    (k) to settle
adjust refer to arbitration compromise and arrange any claims, accounts,
disputes, questions and demands with or by any person who is or claims to be a
creditor of the Borrower or relating in any way to the Properties;

     

    (1)                                 to
effect such insurances of or in connection with the Properties as he
shall

     

     

    in his
absolute discretion think fit;

     

    (m) to
appoint managers officers contractors and agents for the aforesaid

     

    purposes
upon such terms as to remuneration or otherwise as he may
determine;

     

    (n) to do all
such other acts and things as may be considered to be incidental or conducive to
any of the matters or powers aforesaid and which he lawfully may or can
do.

     

    Provided
nevertheless that the Receiver shall not be authorised to exercise any of the
above powers if and insofar and so long as the Bank shall in writing exclude the
same whether in or at the time of his appointment or subsequently.

     

    Any
moneys received by the Receiver in the exercise of his powers under this
Mortgage and under general law shall be (so far as the law permits) applied by
him as follows:

     

    (a)                                 in
payment of the costs, charges and expenses of and incidental to his

     

    appointment
and the exercise of all or any of his powers;

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    (b) in
payment of his remuneration;

     

    (c) in
payment to the Bank of moneys whether for principal, interest or otherwise in
arrear or accruing due under this Mortgage

     

    and any
balance shall be paid to the person or persons entitled to it. LENDER'S
LIABILITY

     

    In no
circumstances shall the Bank be liable to account to the Borrower as a mortgagee
in possession or otherwise for any moneys not actually received unconditionally
and irrevocably by the Bank.

     

    The Bank
shall be under no obligation to take any steps or institute any proceedings for
the recovery of the several debts and moneys hereby mortgaged and in no
circumstances shall the Bank be liable to the Borrower or any other person for
any costs, charges, losses, damages, liabilities or expenses arising from or
connected with any realisation of the Properties or from any act, default,
omission or misconduct of the Bank or the Receiver or the officers employees or
agents of either or both of them in relation to the Properties or in connection
with this Mortgage or the Loan Agreement except to the extent that they shall be
caused by the Bank's or (as the case may be) the Receiver's own fraud negligence
or wilful misconduct or that of its respective officers or
employees.

     

    PROTECTION
OF THIRD PARTIES

     

    Any
purcha.ser or any other person dealing with the Bank or any_
Receiver shall not be concerned to enquire whether the Secured Liabilities have
become payable or whether any power which it or he is purporting to exercise has
become exercisable or whether any money is due under this Mortgage or as to the
application of any money paid, raised or borrowed or as to the propriety or
regularity of any sale by or other dealing with the Bank or such Receiver. All
the protection to purchasers contained in the CLPA shall apply to any person
purchasing from or dealing with the Bank or any Receiver.

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    POWERS OF
LEASING

     

    The
statutory powers of sale leasing and accepting surrenders exercisable by the
Bank are hereby extended so as to authorise the Bank whether in the name of the
Bank or in that of the Borrower to grant a lease or leases of the whole or any
part or parts of the Properties with such rights relating to other parts of it
and containing such covenants on the part of the Borrower and generally on such
terms and conditions (including the payment of money to a lessee or tenant on a
surrender) and whether or not at a premium as the Bank (in its absolute
discretion) shall think fit.

     

    POWER OF
ATTORNEY

     

    The
Borrower hereby irrevocably appoints the Bank and the Receiver jointly and also
severally the attorney and attorneys of the Borrower for the Borrower and in the
name and on behalf of the Borrower and as the act and deed of the Borrower or
otherwise to sign seal and deliver execute as a deed and otherwise perfect any
deed assurance agreement instrument or act which may be required or may be
deemed proper for any of the purposes referred to in or otherwise in connection
with this Mortgage. The Borrower ratifies and confirms and agrees to ratify and
confirm whatever any attorney appointed under this Clause properly does or
purports to do in the exercise of all or any of the powers, authorities and
discretions granted or referred to in this Mortgage.

     

    The power
of attorney hereby granted is irrevocable and for value as part of the security
constituted by this Mortgage.

     

    LENDER'S
RIGHTS

     

    At any
time after this Mortgage becomes enforceable all powers of the Receiver may be
exercised by the Bank whether as attorney of the Borrower or
otherwise.

     

    The
Borrower agrees that at any time after this Mortgage becomes
enforceable:

     

    (a) upon
any sale or other disposition in exercise of the powers contained or implied by
this Mortgage the Bank may sever any fixtures from the Properties and sell the
same apart from the Properties without taking possession of the
Properties

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    and apply
the net proceeds of such sale in or towards satisfaction of the Secured
Liabilities;

     

    (b) the Bank
may as agent of the Borrower remove and sell any chattels on the Properties, the
Bank having the right to retain or set-off such proceeds of sale against any
indebtedness of the Borrower to the Bank;

     

    (c) it shall
be lawful for the Bank to enter into any arrangement or accept any composition
in relation to the debts hereby charged without the concurrence of the Borrower
and any such arrangement or composition shall be binding on the
Borrower.

     

    The Bank
shall, on receiving notice that the Borrower has encumbered or disposed of the
Properties or any part of it or any interest in it, except as otherwise
permitted herein or under the Loan Agreement, be entitled to close any account
or accounts of the Borrower and to open a new account or accounts with the
Borrower and (without prejudice to any right of the Bank to combine accounts) no
money paid into or carried to the credit of any such new account shall be
appropriated towards or have the effect of discharging any part of the amount
due to the Bank on any such closed account. If the Bank does not open a new
account or accounts immediately on receipt of such notice it shall nevertheless
be treated as if it had done so at the time when it received such notice and as
from that time all payments made by the Borrower to the Bank shall be credited
or be treated as having been credited to such new account or accounts and shall
not operate to reduce the amount due from the Borrower to the Bank when it
received such notice.

     

    COSTS AND
EXPENSES

     

    The
Borrower shall, on demand and on a full indemnity basis, pay to the
Bank:

     

    (a)             the
amount of all costs and expenses (including legal and out-of-pocket

     

    expenses
and any Value Added Tax on such costs and expenses) which the Bank and/or any
Receiver incurs in connection with:

     

    (i)            the
preparation, negotiation, execution and delivery of this

     

    Mortgage
and any related document;

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    (ii)any stamping or registration of this
Mortgage;

     

     

    (iii) any
actual or proposed amendment of or waiver or consent under or in connection with
this Mortgage;

     

    (iv) any
discharge or release of this Mortgage;

     

    (v) the
preservation or exercise (or attempted preservation or exercise) of any rights
under or in connection with, and the enforcement (or attempted enforcement) of,
this Mortgage and any related document;

     

    (vi) obtaining
payment of the Secured Liabilities;

     

    (vii)             dealing
with or obtaining advice about any other matter or

     

    question
arising out of or in connection with this Mortgage and any related
document;

     

    (b)             all
other moneys paid by the Bank in perfecting or otherwise in
connection

     

    with this
Mortgage or in respect of the Properties including (without limitation) all
moneys expended by the Bank under clause 8 and all moneys advanced or paid by
the Bank to any Receiver for the purposes set out in clause 10.

     

    Such
costs expenses and other moneys shall be recoverable from the Borrower as a debt
and may be debited to any account of the Borrower and shall bear interest
accordingly at the Default Rate and shall be charged on the
Properties.

     

    CONTINUING
SECURITY

     

    This
Mortgage shall be a continuing security to the Bank notwithstanding any
settlement of account or other matter or thing whatsoever and shall be in
addition to and shall not prejudice or affect or be prejudiced or affected by
any security relating to the Properties or to any other property or any other
security which the Bank may now or at any time in the future hold in respect of
the Secured Liabilities or any of them and shall continue in full force and
effect as a continuing security until discharged.

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    Neither
Section 35 nor 41 of the CLPA shall apply to this security or to any security
given to the Bank pursuant hereto.

     

    SET-OFF

     

    The Bank
may, without notice to the Borrower, apply any credit balance (whether or not
then due and in whatever currency) which is at any time held by any office or
branch of the Bank for the account of the Borrower in or towards satisfaction of
the Secured Liabilities of any of them.

     

    For the
purposes of exercising any rights either under this Clause, or any rights under
the general law, the Bank may convert or translate all or any part of such a
credit balance into another currency applying a rate which in the Bank's opinion
fairly reflects prevailing rates of exchange.

     

    The Bank
is not obliged to exercise any of its rights under this Clause, which shall be
without prejudice and in addition to any rights under the general
law.

     

    In this
Clause 'rights under the general law' means any right of set-off, combination or
consolidation of accounts, lien or similar right which the Bank has under any
applicable law.

     

    NOTICES

     

    Every
notice demand or other communication under this Mortgage shall be in writing and
may be delivered personally or by letter despatched as follows:

     

    (a) if to the
Bank, to its address specified below or the following numbers:

     

    FirstCaribbean
International Bank (Trinidad & Tobago) Limited 74 Long Circular Road,
Maraval,

    Trinidad

     

    Facsimile
+(868) 622-4989

     

    for the
attention of The Managing Director;

     

    (b) if to the
Borrower, to its address specified below or its registered or principal office
for the time being or to the following numbers:

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    PriceSmart
(Trinidad) Limited

     

    Corner
Endeavour Road and Narsaloo Ramaya Road, Chaguanas

    Facsimile
+ (868) 671-1865

     

    for the
attention of: The Regional Financial Controller

     

    With a
courtesy copy to: General Counsel

     

    PriceSmart,
Inc.

     

    9740
Scranton Rd, Ste. 125

     

    San
Diego, California USA 92121 Facsimile +(858) 404-8828

     

    or to
such other address and/or facsimile number as may be notified in accordance with
this Clause by the relevant party to the other party for such
purpose.

     

    Every
notice demand or other communication shall be deemed to have been received if
delivered personally or despatched by facsimile at the time of delivery or
despatch if during normal business hours in the place of intended receipt on a
Business Day in that place and otherwise at the opening of business in that
place on the next succeeding such Business Day.

     

    Any
notices demands or other communication as aforesaid to be given by the Bank may
be made by a Manager of the Bank or by any person or firm acting as attorneys at
law for the Bank.

     

    TRANSFERS

     

    This
Mortgage is freely assignable or transferable by the Bank.

     

    The
Borrower may not assign or transfer any of its obligations under this Mortgage
or enter into any transaction which would result in any of those obligations
passing to another person.

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    The Bank
may disclose to any person related to the Bank and/or any person to whom it is
proposing to transfer or assign or has transferred or assigned this Mortgage any
information about the Borrower and any person connected or associated with it.
The Borrower represents and warrants that it has (and, subject to any contrary
requirement of law, will maintain) any necessary authority by or on behalf of
any such person to agree to the provisions of this Clause.

     

    MISCELLANEOUS

     

    No delay
or omission on the part of the Bank in exercising any right or remedy under this
Mortgage shall impair that right or remedy or operate as or be taken to be a
waiver of it; nor shall any single partial or defective exercise of any such
right or remedy preclude any other or further exercise under this Mortgage of
that or any other right or remedy.

     

    The
Bank's rights under this Mortgage are cumulative and not exclusive of any rights
provided by law and may be exercised from time to time and as often as the Bank
deems expedient.

     

    Any
waiver by the Bank of any terms of this Mortgage, or any consent or approval
given by the Bank under it, shall only be effective if given in writing and then
only for the purpose and upon the terms and conditions, if any, on which it is
given.

     

    If at any
time any one or more of the provisions of this Mortgage is or becomes illegal,
invalid or unenforceable in any respect under any law of any jurisdiction,
neither the legality validity and enforceability of the remaining provisions of
this Mortgage nor the legality validity or enforceability of such provision
under the law of any other jurisdiction shall be in any way affected or unpaired
as a result.

     

    Any
certificate or determination of the Bank as to the amount of the Secured
Liabilities or (without limitation) any matter provided for in this Mortgage
shall, in the absence of manifest error, be conclusive and binding on the
Borrower.

     

    The
Borrower certifies that this Mortgage does not contravene any of the provisions
of its Charter.

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    LAW AND
JURISDICTION

     

    This
Mortgage is governed by and shall be construed in accordance with Trinidad and
Tobago law.

     

    The
Borrower irrevocably agrees for the exclusive benefit of the Bank that the
Courts of Trinidad and Tobago shall have jurisdiction to hear and determine any
suit action or proceeding, and to settle any dispute, which may arise out of or
in connection with this Mortgage and for such purposes hereby irrevocably
submits to the jurisdiction of such Courts.

     

    Nothing
contained in this Clause shall limit the right of the Bank to take proceedings
against the Borrower in any other court of competent jurisdiction, nor shall the
taking of any such proceedings in one or more jurisdictions preclude the taking
of proceedings in any other jurisdiction, whether concurrently or not (unless
precluded by applicable law).

     

    The
Borrower irrevocably waives any objection which it may have now or in the future
to the Courts of Trinidad and Tobago being nominated for the purpose of this
Clause on the ground of venue or otherwise and agrees not to claim that any such
Court is not a convenient or appropriate forum.

     

    IN WITNESS whereof
this Mortgage has been duly executed as a deed and is intended to be and is
delivered on the date first above written.

     

    [THE
REMAINDER OF THIS PAGE DELIBERATELY LEFT BLANK. THE SIGNATORIES

     

    APPEARS
AT THE FOOT OF THE DEED AFTER THE SCHEDULES]

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
1

     

    Part 1- Leasehold Property
(PriceSmart Port-of-Spain)

     

    ALL THAT floor space
(erroneously referred to in the Second Part of the First Schedule to the Deed of
Sub-Lease registered as No. DE 2001 0202 5719 D001 as that piece or parcel of
land) comprising 0.5252 hectares in the upper level of the building constructed
on the parcel of land being portion of the parcel of land situate at Invaders
Bay, off the Audrey Jeffers Highway, in the City of Port of Spain, in the Island
of Trinidad described in the First Part of the Schedule to the Deed of Sub-Lease
and shown delineated aitd coloured pink and marked "(A)" on the plan annexed and
marked "Y" to the Deed of Sub-Lease.

     

    Part 2 -
Lease

     

    Deed of
Sub-Lease dated the 8th
February 2001 made between Trinbago Cultural Development Company Limited
(the "Landlord") and the Borrower registered as No. DE2001 020257 19D001 whereby
the Leasehold Property was demised to the Borrower for a period of 30 years
commencing on 6th July
2001 subject to the payment of the rentals specified therein and the obligations
of the Borrower to be observed and performed including the prohibition not to
assign underlet grant any license or part with possession of the Leasehold
Property without the prior written consent of the Landlord (such consent not to
be unreasonably withheld) with a right to obtain a further 25-year Lease in
certain circumstances.

     

    Part 3 – Rights and
Liberties

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              1.  

            	
              Full
      right and liberty for the Tenant its servants and agents, licensees and
      customers in common with the Landlord its other tenants and licensees and
      all others having the like right to pass and repass with motor vehicles
      over and along the Common Areas forming part of the Development Site for
      the purpose of gaining access to and exit from the Demised Premises and
      the designated parking area.

            

    

     

    
      	
              2.  

            	
              Full
      right and liberty for the Tenant its servants and agents, licensees and
      customers to the preferred parking spaces (hereinafter referred to as "the
      Tenant's Car Park" comprised in the area marked "(B)" comprising 1.2729
      hectares shown delineated and coloured in green on the Plan hereto annexed
      and marked "Y".

            

    

     

    
      	
              3.  

            	
              Full
      right and liberty for the Tenant its servants and agents, licensees and
      customers in common with the Landlord its other tenants and licensees and
      all others having the like right to use in addition to the Tenant's Car
      Park, the car parking area forming part of the Development Site and
      adjoining the Building for the purpose of parking motor vehicles thereon
      when visiting the Demised Premises in connection with the business carried
      on by the Tenant thereon.

            

    

     

    
      	
              4.  

            	
              The
      right of free passage and running of water and soil in and through the
      sewers drains and channels made or to be made upon through or under the
      Building and the free and uninterrupted use of all gas, electric,
      telephone and other pipes wires cables and conduits through and under such
      premises so far as necessary for the enjoyment of the Demised
      Premises.

            

    

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    SIGNATORIES:

     

    
      

       

      Name:

    

    The COMMON SEAL of PRICESMART
(TRINIDAD) LIMITED was hereto affixed by order and authority of the Board of
Directors of the Borrower and in conformity with its Charter in the presence of
the under-mentioned witness:

     

    Title:

    Witness
Signature                                                                 

    Name

    Name:

    Occupation                                                                 

    Title:

    Address

     

    And of
me,

     

     

    Attorney-at-Law

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    Schedule 4

    Form
of Port Authority of Trinidad and Tobago Deed of Licence

     

    REPUBLIC
OF TRINIDAD AND TOBAGO:

     

    DEED
OF LICENCE

     

    This Deed
was prepared. by
me,

     

    M. Glenn
Hamel-Smith Attorney-at-Law

     

    M.
Hamel-Smith & Co. Eleven Albion

    Cor. Dere
& Albion Streets Port of Spain

    Admission
No. HAM2003004

     

    THIS DEED OF LICENCE is made
as of
the                                                                                                                                     
day of , 2009

     

    AMONG:

     

    I. PORT AUTHORITY OF TRINIDAD AND TOBAGO
a body corporate established by the Port Authority Act Chap 51:01 of the
laws of the Republic of Trinidad and Tobago having its principal office at Dock
Road, Port of Spain, in the Island of Trinidad

     

    
      	
            	
              FORM
      OF PATT
      DEED OF LICENCE

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
            
	
               

            	
              FORM
      OF PATT DEED OF LICENCE

            

    

    
      	
               

            	
              FORM
      OF PATT DEED OF LICENCE

            

    

     

    
    

     

    (hereinafter
called "the Landlord" which expression where the context so admits shall include
its successors or assigns);

     

    2. TRINBAGO CULTURAL DEVELOPMENT COMPANY
LIMITED a company with limited liability incorporated under the Companies
Act, Ch. 81:01 of the laws of Trinidad and Tobago and having its registered
office at [Nos. 41-43 Comelio Street Woodbrook in the City of Port of Spain in
the Island of Trinidad (hereinafter called "the Lessee" which expression where
the context so admits shall include its successors or assigns);

     

    3. PRICESMART (TRINIDAD) LIMITED
a company with limited liability incorpor,[ed under the Companies Act,
1995 (Ch. 81:01 of the laws of Trinidad and Tobago) with company number P 1916
(95) A and having its registered office at Endeavour Road and Narsaloo Ramaya
Road, Chaguanas, in the island of Trinidad (hereinafter called "the Tenant"
which expression where the context so admits shall include its successors or
assigns); and

     

    4. FIRSTCARIBBEAN INTERNATIONAL BANK
(TRINIDAD & TOBAGO)
LIMITED a bank
incorporated as a company with limited liability under the Companies Act Chap.
81:01 of the laws of Trinidad and Tobago and having its registered office at 74
Long Circular Road, Maraval, in the Ward of Diego Martin, in the Island of
Trinidad (hereinafter called "the Lender").

     

    WHEREAS:

     

    
      	
              A.

            	
              Subject
      to the Leases described in Recital B and C, the freehold
      hereditaments

            

    

     

    
      	
               
      

            	
              described
      in the First Schedule hereto are vested in the Landlord in fee
      simple.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
              B.  

            	
              Subject
      to the SubLease described in Recital C, the leasehold premises described
      in Part 1 of the Schedule hereto (hereinafter referred to as "the
      Development Site") are vested in the Lessee for all the unexpired residue
      of the term of THIRTY ONE (31) YEARS from the 1st
      day of May 2001 granted by a certain deed of lease (hereinafter
      referred to as "the Trinbago Lease") dated the 4th

            

    

    4 day of
May 2001 registered as No. DE2001 0131 2393 D000) and made between the Landlord
of the One Part and the Lessee of the Other Part at the rent and SUBJECT to the
reservation of the Landlord of the mineral rights referred to in the Trinbago
Lease and subject to the observance and performance of the covenants, conditions
and agreements contained therein and on the part of the Lessee to be observed
and performed including a covenant not to assign, underlet part with otherwise
dispose of the whole or any part of the Development Site or any right or
privilege in relation thereto without the previous Consent in writing of the
Landlord.

     

    
      	
              C.  

            	
              The
      Tenant is possessed of the leasehold hereditaments described in Part 2 of
      the Schedule hereto (hereinafter called "the Leasehold Premises") for all
      the residue now unexpired of the term of thirty (30) years from the 6th
      day of July, 2001 created by a certain deed of sub-lease ("the
      Sub-Lease") dated the

            

    

    8th day

    a of
February, 2001 registered as No. DE2001 0202 5719 D001 and made between the
Lessee of the One Part and the Tenant of the Other Part (which Sub-Lease
contained the prior written Consent of the Landlord attached and marked "X")
together with the rights and liberties described in the Second Schedule to the
Sub-Lease Subject to the restrictions set out in the Fourth Schedule to the
Sub-Lease, the payment of the rent reserved by the Sub-Lease and the observance
and performance of the Tenant's covenants and conditions set out and contained
in the Sub-Lease.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    structures
thereon or any right or privilege in relation thereto conferred by the Lease
without the prior consent in writing of the Landlord and also a proviso
entitling the Landlord to re-enter upon the Development Site in the event of any
breach by the Lessee of any of the covenants on the part of the Lessee therein
contained.

     

    
      	
              E.

            	
              The
      Tenant being desirous of assigning the Leasehold Premises by way
      of

            

    

     

    
      	
               
      

            	
              security
      for the loan facilities under a mortgage (hereinafter called
      "the

            

    

    Mortgage")
already prepared and intended to be executed contemporaneously herewith to be
given by the Tenant in favour of the Lender, the Tenant has requested the
Landlord to grant it a licence so to do on the terms and subject to the
conditions hereinafter contained and to grant to the Lender and the Tenant such
security against the forfeiture or surrender of the Lease as is hereinafter
contained.

     

    NOW THIS DEED
WITNESSETH as
follows:

     

    I.CONSENT

     

    
      	
               
      

            	
              1.1
      The Landlord hereby consents to the assignment by the Tenant to the
      Lender of the Leasehold Premises by way of mortgage for all the unexpired
      residue of the term of years granted by the Sub-Lease together with all
      the rights and liberties in relation thereto conferred by the
      Sub-Lease.

            

    

     

    
      	
               
      

            	
              1.2

            	
              The
      Landlord, the Lessee and the Tenant each hereby agrees and
      declares

            

    

     

    
      	
               
      

            	
              that
      as at the date of this Licence:

            

    

     

    1.2.1 the
Lease and the Sub-Lease are in full force and effect;

     

    
      	
               
      

            	
              1.2.2
      there are no subsisting breaches of the terms and provisions of the Lease
      and the Sub-Lease other than those which have been
    previously

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    waived or
are hereby waived;

     

    
      	
               
      

            	
              1.2.3
      all rents, service charges and other payments due by the Lessee and the
      Tenant have been paid in full;

            

    

     

    
      	
               
      

            	
              1.2.4
      no such payments are due or owing by the Lessee or the Tenant as at the
      date hereof; and

            

    

     

    
      	
               
      

            	
              1.2.5
      None of the Landlord, the Lessee or the Tenant has assigned, transferred
      or otherwise disposed of all or any part of its rights or obligations in
      to or under the Lease or the Sub-Lease or in respect of the Leasehold
      Premises and has no notice of, and has not consented to, any assignment,
      transfer or other disposition by the Landlord, the Lessee or the Tenant of
      all or any part of the rights or obligations of the Landlord, the Lessee
      or the Tenant in, to or under the Lease or the Sub-Lease or in respect of
      the Leasehold Premises other than as provided
  herein.

            

    

     

    2. WAIVER AND NOTICE

     

    Unless
and until the Mortgage is released and discharged, the Landlord hereby
covenants, undertakes and agrees with the Lender that:

     

    
      	
               
      

            	
              2.1
      notwithstanding the privity of estate between the Landlord and the Lender
      in respect of the Tenant's covenants and conditions in the Sub-Lease
      assigned to the Lender by the Mortgage and save as hereinafter provided
      (i) the Lender shall have no liability or obligation under the Lease or
      the Sub-Lease, and (ii) the Lender shall not be obligated or required to
      perform any of the Lessee's or the Tenant's covenants or conditions under
      the Lease or the Sub-Lease respectively or take any action to collect or
      enforce any claim for payment by the Landlord under the Lease or the
      Sub-Lease;

            

    

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
               
      

            	
               2.2
      in the event that the Landlord becomes entitled to forfeit the Lease or to
      re-enter the Development Site by reason of (i) non-payment of the whole or
      any part of the rents, service charges and other payments reserved under
      the Lease (hereinafter called a "Payment Default"), or (ii) the Lessee's
      failure to perform or observe any covenant on its part contained in the
      Lease (hereinafter called a "Performance Default"), the Landlord will not
      exercise, or seek to exercise, such right to forfeit the Lease or re-enter
      the Leasehold Premises unless (a) it first gives written notice
      (hereinafter called a "Default Notice") to the Lender of the relevant
      Payment Default or Performance Default, and (b) in the case of a Payment
      Default such default continues unremedied for a period of thirty (30)
      calendar days after such Default Notice has been given to the Lender, and
      (c) in the case of a Performance Default such default has not been
      remedied within a reasonable period of not greater than sixty (60)
      calendar days after the Default Notice has been given to the Lender to
      cure such default (hereinafter called the "Remedial
    Period");

            

    

     

    
      	
               
      

            	
               2.3
      upon delivery of any Default Notice in accordance with sub-clause 2.2(a)
      above, the Lender or any nominee or assignee thereof may, in its sole
      discretion within a period of thirty (30) calendar days after the delivery
      of such Default Notice, remedy a Payment Default by
  paying

            

    

    to the
Landlord the full amount of the rents, service charges orother

    payments
due and unpaid, or during the Remedial Period, remedy the Performance Default by
carrying out or performing, or procuring the carrying out or performance, of any
act, duty or obligation required of the Lessee under the Lease;

     

    
      	
               
      

            	
               2.4
      the Landlord will not exercise its rights to forfeit the Lease or re-enter
      the Leasehold Premises for any reason other than a Payment Default or a
      Performance Default;

            

    

    
      
        
        

         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              2.5
      the Landlord will not amend, vary or accept a surrender of, other than in
      accordance with the provisions of this Licence, the Lease without the
      Tenant first obtaining and delivering to the Landlord the consent in
      writing of the Lender such consent not to be unreasonably withheld or
      delayed.

            

    

     

    3. NEW
LEASE

     

    
      	
               
      

            	
              3.1
      The Landlord hereby covenants with the Lender that in the event of any
      surrender or forfeiture of the Lease for any reason other than a Payment
      Default or a Performance Default which has not been remedied in accordance
      with the terms of the Lease or this Licence, occurring at any time during
      the subsistence of the Mortgage, the Landlord will, upon written request
      by the Lender forthwith grant to the Tenant or the nominee appointed by
      the Tenant without further charge a lease for the same duration as the
      unexpired residue of the term of years granted by the Sub-Lease at the
      yearly rent and the service charges reserved by the Sub-Lease together
      with the same rights and liberties in relation thereto conferred by the
      Sub-Lease and upon the same terms and conditions contained in the
      Sub-Lease subject to the reasonable and customary costs, charges and
      expenses incurred by the Landlord in the preparation, stamping and
      registration of such replacement
lease.

            

    

     

    
      	
               
      

            	
              3.2
      The Landlord hereby covenants with the Tenant and the Lender that nothing
      contained in the Lease, the Sub-Lease or this Licence shall debar the
      Tenant or the Lender from applying to a court of competent jurisdiction
      for relief from forfeiture or any other equitable or injunctive
      relief.

            

    

     

    4. NOTICES
4.1                                   All
notices to be given hereunder shall be deemed to have been properly
served

    
      
        
        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    (i) at
the time of despatch if transmitted by facsimile, (ii) at the date of delivery
if delivered personally or sent by established prepaid courier service, or (iii)
at the date of actual receipt if sent by mail postage prepaid in each case
addressed to the party's address specified below or at such other address as
such party shall have designated by notice to the party giving or making such
notice or other communication:

     

     

    

    
      	
              For
      the Landlord:

            	
              PORT
      AUTHORITY OF TRINIDAD AND TOBAGO

              Dock
      Road Port of Spain Trinidad and Tobago

              Attention:                       General
      Manager

              Facsimile:                       (868)
      627-2666

            

    

    

     

     

    

    
      	
              For
      the Lessee:

            	
              TRINBAGO
      CULTURAL DEVELOPMENT COMPANY LIMITED

              41-43
      Cornelio Street,

              Woodbrook,

              Port-of-Spain

              Facsimile
      + (868) [

              For
      the attention of: [

            

    

    

     

     

    

    
      	
              For
      the Tenant:

            	
              PRICESMART
      (TRINIDAD) LIMITED

              Corner
      Endeavour Road and Narsaloo Ramaya Road, Chaguanas

              Facsimile
      + (868) 671-1865

              for
      the attention of: The Regional Financial
  Controller

            

    

    
      
        
        

         

      

      
         

        
          

        

      

      
         

      

    

    With a
courtesy copy to:General Counsel

     

    PriceSmart,
Inc.9740 Scranton Rd., Ste. 125 San Diego, California 92121

     

    Fax
number: 858-404-8828

     

    

    
      	
              For
      the Lender:

            	
              FIRSTCARIBBEAN INTERNATIONAL
      BANK (TRINIDAD & TOBAGO)
      LIMITED

              74
      Long Circular Road,

              Maraval,

              Trinidad
      and Tobago

              Attention:
      Head of Corporate Banking & Deputy Managing Director

              Fax
      number: (868) 622-4989

            

    

     

    5.PROVISO

     

    
      	
               
      

            	
               5.1
      Provided always that save as hereinbefore mentioned this Licence shall not
      extend to permit or authorize any further or other dealing with or
      assignment, demise or underlease of the Lease, the Sub-Lease or any part
      thereof.

            

    

     

    
      	
               
      

            	
               5.2
      Except as otherwise provided in this Licence the provisions of the Lease
      and the Sub-Lease are hereby confirmed in all respects and nothing
      contained in this Licence shall otherwise alter, affect, prevent or
      relieve the Landlord, the Lessee or the Tenant as the case may be of their
      respective rights, duties, obligations and liabilities under or in respect
      of the Lease or the Sub-Lease as the case may
  be.

            

    

    
      
        
        

         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF this
Licence has been executed and delivered as a deed by PORT AUTHORITY OF TRINIDAD AND TOBAGO
as of the  day of

     

     2009, by TRINBAGOCULTURAL
DEVELOPMENT

     

    COMPANY LIMITED as of
the                                                                           
day of , 2009 by

    PRICESMART (TRINIDAD) LIMITED
on
the                                                                                                                                    day
of , 2009

    and by
FIRSTCARIBBEAN INTERNATIONAL
BANK (TRINIDAD &
TOBAGO)

    LIMITED
on
the                                                                                          day
of, 2009.

     

    THE
SCHEDULE ABOVE REFERRED TO:

     

    Part 1

     

    The Freehold
Premises

     

    Invaders Bay, Audrey Jeffers
Highway, Port of Spain.

     

    ALL AND SINGULAR those two
contiguous pieces or parcels of land comprising together 9.94 ACRES (4.0236
hectares) situate at Invaders Bay, off the Audrey Jeffers Highway, in the City
of Port of Spain, in the Island of Trinidad THE FIRST THEREOF shown on the plan
(hereinafter referred to as "the said Plan") dated the 27th day of
November 2000 prepared by Brian Moses, Licensed Land Surveyor, marked "Z" and
annexed to the said Lease registered as No. DE 2001 0131 2393 D000, as Lot "1 d"
comprising 5.25 ACRES (2.1245 hectares) and bounded -

     

     

    

    
      	
              on
      the North:

              on
      the South:

              on
      the East:

            	
              partly
      by other lands of the Port Authority of Trinidad and Tobago designated
      "Highway Reserve" separating the said lands from the Audrey Jeffers
      Highway and partly by other lands of the Port Authority of Trinidad and
      Tobago;

              by
      a Road Reserve;

              partly
      by the said lands of the Port Authority of Trinidad and Tobago designated
      "Highway Reserve" separating the
said

            

    

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    lands
from the Audrey Jeffers Highway and partly by Lot "1 e" hereinafter described;
and

     

    
      	
               
      

            	
              on
      the West:

            	
              partly
      by the said Road Reserve and partly by other lands
  of

            

    

     

    
      	
               
      

            	
              the
      Port Authority of Trinidad and
Tobago;

            

    

     

    and THE
SECOND THEREOF shown as Lot "1 e" on the said Plan comprising 4.69 ACRES (1.8991
hectares) and bounded –

     

    on the
North:

     

    on the
South: on the East: on the West:

    

     

    partly by
other lands of the Port Authority of Trinidad and Tobago designated "Highway
Reserve" separating the said lands from the Audrey Jeffers Highway;

    by a Road
Reserve;

     

    by the
said Road Reserve; and

     

    by Lot "1
d" hereinbefore described.

    

     

    Part 2

     

    The Leasehold
Premises.

     

    ALL that
floor space (erroneously referred to in the Second Part of the First Schedule to
the Deed of Sub-Lease registered as DE 2001 0202 5719 D001 described in Recital
C hereto as "that piece or parcel of land") comprising 0.5252 hectares in the
upper level of the building constructed on the parcel of land described in Part
1 of this Schedule situate at Invaders Bay, off the Audrey Jeffers Highway, in
the City of Port of Spain, in the island of Trinidad shown delineated and
coloured pink and marked "(A)" on the plan marked "Y" annexed to the said Deed
of Sub-Lease.

    
      
        
        

         

      

      
         

        
          

        

      

      
         

      

    

    The
Common Seal of PORT

    AUTHORITY OF TRINIDAD AND
TOBAGO was
hereto

     

    affixed
by the Secretary in the presence of

     

    Chairman
and

     

    a
Commissioner with due authority in the presence of:

     

    
      	
              Witness

            	 
      	 
      	 
      	 
      	 
      	 
      
	
              Signature:

              Name:

              Occupation:
      Address:

            	 
      	 
      	 
      	 
      	
              And
      of me

            
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	
              Attorney-at-Law

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      

    

    

     

    THE COMMON SEAL of PRICESMART (TRINIDAD) LIMITED was affixed
to THIS DEED by order and authority of its Board of Directors and in conformity
with its By-Laws in the presence of:

     

    
      	
              Witness
      Signature:

              Name:

            	 
      	
              And
      of me,

            
	 
      	 
      

    

     

    

    
      	
              Occupation:
      Address:

            	 
      	
              Attorney
      at Law

            
	 
      

    

    
      
        
        

         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              THE COMMON SEAL of FIRSTCARIBBEAN INTERNATIONAL
      BANK (TRINIDAD
      & TOBAGO)
      LIMITED was
      affixed to THIS DEED by order and authority of its Board of Directors and
      in conformity with its By-Laws
      in the presence of:

            	 
      
	
              Witness
      Signature:

              Name:

            	 
      	 
      	 
      	 
      	 
      	 
      	
              And
      of me,

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              Occupation:
      Address..

            	 
      	 
      	 
      	 
      	 
      	
              Attorney
      at Law

            
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

    

    

     

    
      	
              THE COMMON SEAL of TRINBAGO CULTURAL DEVELOPMENT
      COMPANY LIMITED
      was affixed to THIS DEED by order and authority of its Board of
      Directors and in conformity with its By-Laws in the presence
      of:

            	 
      
	
              Witness
      Signature:

              Name:

            	 
      	 
      	 
      	 
      	
              And
      of me,

            
	 
      	 
      	 
      	 
      	 
      
	
              Occupation:
      Address:

            	 
      	 
      	 
      	
              Attorney
      at Law

            
	 
      	 
      	 
      

    

    
      
         

          
             

          

        

      

      
         

        
          

        

      

      
         

        
          
            	
                    TRINIDAD
      AND TOBAGO

                  

          

          

        

      

    

    

     

    DEED
OF LICENCE

     

    AMONG

     

    
      	
               
      

            	
              PORT
      AUTHORITY OF TRINIDAD AND TOBAGO As
Landlord

            

    

     

    AND

     

    
      	
               
      

            	
              TRINBAGO
      CULTURAL DE; ELOPMENT COMPANY LIMITED As
Lessee

            

    

    AND

     

    PRICESMART
LIMITED

     

    As
Tenant

     

    AND

     

    
      	
               
      

            	
              FIRSTCARIBBEAN
      INTERNATIONAL BANK (TRINIDAD & TOBAGO) LIMITED As
    Lender

            

    

     

    Dated
the                        
day
of                                                        ,
2009.

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    This
Licence was prepared by:

     

     

    M. Glenn
Hamel-Smith

     

    Attorney-at-Law

     

    M.
Hamel-Smith & Co.

     

    Eleven
Albion

     

    Cor. Dere
& Albion Streets

     

    Port of
Spain

     

    Admission
No. RAM2003004

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
5

    Form
of Trinbago Cultural Development Company Limited Deed of Licence

     

    REPUBLIC
OF TRINIDAD AND TOBAGO:

     

    DEED
OF LICENCE

     

    This Deed
was prepared by me,

     

    M. Glenn
Hamel-Smith Attorney-at-Law

     

    M.
Hamel-Smith & Co. Eleven Albion

    Cor. Dere
& Albion Streets Port of Spain

    Admission
No. HAM2003004

     

    THIS DEED OF LICENCE is made
as of
the                                                                                                                         
day of, 2009

     

    AMONG:

     

    5. TRINBAGO CULTURAL DEVELOPMENT
COMPANY LIMITED a company with limited liability incorporated under the
Companies Act, Ch. 81:01 of the laws of Trinidad and Tobago and having its
registered office at [Nos. 41-43 Cornelio Street Woodbrook in the City of Port
of Spain] in the Island of Trinidad (hereinafter called "the

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Landlord"
which expression where the context so admits shall include its successors or
assigns);

     

    6. PRICESMART (TRINIDAD) LIMITED
a company with limited liability incorporated under the Companies Act,
1995 (Ch. 81:01 of the laws of Trinidad and Tobago) with company number P 1916
(95) A and having its registered office at Endeavour Road and Narsaloo Ramaya
Road, Chaguanas, in the island of Trinidad (hereinafter called "the Tenant"
which expression where the context so admits shall include its successors or
assigns); and

     

    7. FIRSTCARIBBEAN INTERNATIONAL BANK
(TRINIDAD & TOBAGO)
LIMITED a bank
incorporated as a company with limited liability under the Companies Act Chap.
81:01 of the laws of Trinidad and Tobago and having its registered office at 74
Long Circular Road, Maraval, in the Ward of Diego Martin, in the Island of
Trinidad (hereinafter called "the Lender").

     

    WHEREAS:

     

    
      	
               
      

            	
              A.
      Subject to the SubLease described in Recital B, the leasehold premises
      described in Part 1 of the Schedule hereto (hereinafter referred to as
      "the Development Site") are vested in the Landlord for all the unexpired
      residue of the term of THIRTY ONE (31) YEARS from the 1st
      day of May 2001 granted by a certain deed of lease (hereinafter
      referred to as "the Trinbago Lease") dated the 4th
      day of May 2001 registered as No. DE2001 0131 2393 D000) and made
      between the Port Authority of Trinidad and Tobago (`PATT') of the One Part
      and the Landlord of the Other Part at the rent and SUBJECT to the
      reservation of PATT of the mineral rights referred to in the Trinbago
      Lease and subject to the observance and performance of the covenants,
      conditions and agreements contained therein and on the part of the
      Landlord to be observed and
performed

            

    

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    including
a covenant not to assign, underlet part with otherwise dispose of the whole or
any part of the Development Site or any right or privilege in relation thereto
without the previous Consent in writing of PATT.

     

    
      	
              B.  

            	
              The
      Tenant is possessed of the leasehold hereditaments described in Part 2 of
      the Schedule hereto {hereinafter called "the Leasehold Premises") for all
      the residue now unexpired of the term of thirty (30) years from the 6th
      day of July, 2001 created by a certain deed of sub-lease ("the
      Sub-Lease") dated the 8th
      day of February, 2001 registered as No. DE2001 0202 5719 D001 and
      made between the Landlord of the One Part and the Tenant of the Other Part
      (which Sub-Lease contained the prior written Consent of PATT attached and
      marked "X") together with the rights and liberties described in the Second
      Schedule to the Sub-Lease Subject to the restrictions set out in the
      Fourth Schedule to the Sub-Lease, the payment of the rent reserved by the
      Sub-Lease and the observance and performance of the Tenant's covenants and
      conditions set out and contained in the
  Sub-Lease.

            

    

     

    
      	
              C.  

            	
              The
      Sub-Lease contains a covenant by the Tenant not to assign, underlet or
      otherwise part with or share the possession or occupation and/or dispose
      of the Leasehold Premises or any part or parts thereof or any building or
      other structures thereon or any right or privilege in relation thereto
      conferred by the Sub-Lease without the prior consent in writing of the
      Landlord and also a proviso entitling the Landlord to re-enter upon the
      Leasehold Premises in the event of any breach by the Lessee of any of the
      covenants on the part of the Lessee therein
  contained.

            

    

     

    D.The
Tenant being desirous of assigning the Leasehold Premises by way of

    security
for the loan facilities under a mortgage (hereinafter called "the

    Mortgage")
already                                                           prepared                               and          intendedtobeexecuted

     

    contemporaneously herewith to be given
by the Tenant in favour of the IHamel-SmithFORM OF
TCDCL
DEED OF
LICENCE

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Lender,
the Tenant has requested the Landlord to grant it a licence so to do on the
terms and subject to the conditions hereinafter contained and to grant to the
Lender and the Tenant such security against the forfeiture or surrender of the
Lease as is hereinafter contained.

     

    
      	
               
      

            	
              E.
      By a separate deed of licence (the `PATT Licence') entered into
      contemporaneously herewith by PATT, the Lender, the Landlord and the
      Tenant, PATT has granted the Landlord and the Tenant a licence to assign
      the Leasehold Premises to the Lender by way of security for the loan
      facility under the Mortgage (subject to the conditions contained therein)
      and to grant to the Lender and the Tenant such security against the
      forfeiture or surrender of the Trinbago Lease as is contained
      therein.

            

    

     

    NOW THIS DEED WITNESSETH as
follows:

     

    1.CONSENT

     

    
      	
               
      

            	
              1.3
      The Landlord hereby consents to the assignment by the Tenant to the Lender
      of the Leasehold Premises by way of mortgage for all the unexpired residue
      of the term of years granted by the Sub-Lease together with all the rights
      and liberties in relation thereto conferred by the
    Sub-Lease.

            

    

     

    
      	
               
      

            	
              1.4

            	
              The
      Landlord and the Tenant each hereby agrees and declares that as
      at

            

    

     

    
      	
               
      

            	
              the
      date of this Licence:

            

    

     

    12.6 the
Trinbago Lease and the Sub-Lease are in full force and effect;

     

    
      	
               
      

            	
              1.2.7
      there are no subsisting breaches of the terms and provisions of the
      Trinbago Lease and the Sub-Lease other than those which have been
      previously waived or are hereby
waived;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
               
      

            	
              12.8
      all rents, service charges and other payments due by the Landlord and the
      Tenant have been paid in full;

            

    

     

    
      	
               
      

            	
              1.2.9
      no such payments are due or owing by the Landlord or the Tenant as at the
      date hereof; and

            

    

     

    
      	
               
      

            	
              1.2.10
      Neither the Landlord nor the Tenant has assigned, transferred or otherwise
      disposed of all or any part of its rights or obligations in to or under
      the Trinbago Lease or the Sub-Lease or in respect of the Leasehold
      Premises and has no notice of, and has not consented to, any assignment,
      transfer or other disposition by PATT, the Landlord, or the Tenant of all
      or any part of the rights or obligations of PATT, the Landlord, or the
      Tenant in, to or under the Trinbago Lease or the Sub-Lease or in respect
      of the Leasehold Premises other than as provided
  herein.

            

    

     

    2. WAIVER AND NOTICE

     

    Unless
and until the Mortgage is released and discharged, the Landlord hereby
covenants, undertakes and agrees with the Lender that:

     

    
      	
               
      

            	
              2.1
      notwithstanding the privity of estate between the Landlord and the Lender
      in respect of the Tenant's covenants and conditions in the Sub-Lease
      assigned to the Lender by the Mortgage and save as hereinafter provided
      (i) the Lender shall have no liability or obligation under the Trinbago
      Lease or the Sub-Lease, and (ii) the Lender shall not be obligated or
      required to perform any of the Landlord's or the Tenant's covenants or
      conditions under the Trinbago Lease or the Sub-Lease respectively or take
      any action to collect or enforce any claim for payment
  by

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    PATT or
the Landlord under the Trinbago Lease or the Sub-Lease;

     

     

    
      	
               
      

            	
              2.2
      in the event that the Landlord becomes entitled to forfeit the Sub-Lease
      or to re-enter the Leasehold Premises by reason of (i) non-payment of the
      whole or any part of the rents, service charges and other payments
      reserved under the Sub-Lease (hereinafter called a "Payment Default"), or
      (ii) the Tenant's failure to perform or observe any covenant on its part
      contained in the Sub-Lease (hereinafter called a "Performance Default"),
      the Landlord will not exercise, or seek to exercise, such right to forfeit
      the Sub-Lease or re-enter the Leasehold Premises unless (a) it first gives
      written notice (hereinafter called a "Default Notice") to the Lender of
      the relevant Payment Default or Performance Default, and (b) in the case
      of a Payment Default such default continues unremedied for a period of
      thirty (30) calendar days after such Default Notice has been given to the
      Lender, and (c) in the case of a Performance Default such default has not
      been remedied within a reasonable period of not greater than sixty (60)
      calendar days after the Default Notice has been given to the Lender to
      cure such default (hereinafter called the "Remedial
    Period");

            

    

     

    
      	
               
      

            	
              2.3
      Upon delivery of any Default Notice in accordance with sub-clause 2.2(a)
      above, the Lender or any nominee or assignee thereof may, in its sole
      discretion within a period of thirty (30) calendar days after the delivery
      of such Default Notice, remedy a Payment Default by paying to the Landlord
      the full amount of the rents, service charges or other payments due and
      unpaid, or during the Remedial Period, remedy the Performance Default by
      carrying out or performing, or procuring the carrying out or performance,
      of any act, duty or obligation required of the Lessee under the
      Lease;

            

    

     

    
      	
               
      

            	
               2.6
      the Landlord will not exercise its rights to forfeit the Sub-Lease or
      re­enter the Leasehold Premises for any reason other than a Payment
      Default or a Performance Default;

            

    

     

    2.7the Landlord will not amend, vary
or accept a surrender of, other than

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    in
accordance with the provisions of this Licence, the Sub-Lease without the Tenant
first obtaining and delivering to the Landlord the consent in writing of the
Lender such consent not to be unreasonably withheld or delayed.

     

    3. NEW
LEASE

     

    
      	
               
      

            	
              3.3
      The Landlord hereby covenants with the Lender that in the event of any
      surrender or forfeiture of the Sub-Lease for any reason other than a
      Payment Default or a Performance Default which has not been remedied in
      accordance with the terms of the Sub-Lease or this Licence, occurring at
      any time during the subsistence of the Mortgage, the Landlord will, upon
      written request by the Lender forthwith grant to the Lender or the nominee
      appointed by the Lender without further charge a lease for the same
      duration as the unexpired residue of the term of years granted by the
      Sub-Lease at the yearly rent and the service charges reserved by the
      Sub-Lease together with the same rights and liberties in relation thereto
      conferred by the Sub-Lease and upon the same terms and conditions
      contained in the Sub-Lease subject to the reasonable and customary costs,
      charges and expenses incurred by the Landlord in the preparation, stamping
      and registration of such replacement
lease.

            

    

     

    
      	
               
      

            	
              3.4
      The Landlord hereby covenants with the Tenant and the Lender that nothing
      contained in the Trinbago Lease, the Sub-Lease or this Licence shall debar
      the Tenant or the Lender from applying to a court of competent
      jurisdiction for relief from forfeiture or any other equitable or
      injunctive relief.

            

    

     

    4. NOTICES

     

    
      	
               
      

            	
              2.1
      All notices to be given hereunder shall be deemed to have been
      properly served (i) at the time of despatch if transmitted by facsimile,
      (ii) at the date of delivery if delivered personally or sent by
      established prepaid courier service, or (iii) at the date of actual
      receipt if sent by mail postage prepaid in each case addressed to the
      party's address specified below or at such other address as such party
      shall

            

    

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    have
designated by notice to the party giving or making such notice or other
communication:

     

     

    

    
      	
              For
      the Landlord:

              For
      the Tenant:

            	
              TRINBAGO
      CULTURAL DEVELOPMENT COMPANY LIMITED

              41-43
      Cornelio Street,

              Woodbrook,

              Port-of-Spain

              Facsimile
      + (868) [

              For
      the attention of:
      [                                                          ]

              PRICESMART
      (TRINIDAD) LIMITED

              Corner
      Endeavour Road and Narsaloo Ramaya Road, Chaguanas

              Facsimile
      + (868) 671-1865

              for
      the attention of: The Regional Financial
  Controller

            

    

    

     

    With a
courtesy copy to:General Counsel

     

    PriceSmart,
Inc.9740 Scranton Rd., Ste. 125 San Diego, California 92121

     

    Fax
number: 858-404-8828

     

     

    

    
      	
              For
      the Lender:

            	
              FIRSTCARIBBEAN INTERNATIONAL
      BANK (TRINIDAD & TOBAGO)
      LIMITED

              74
      Long Circular Road,

              Maraval,

              Trinidad
      and Tobago

              Attention:
      Head of Corporate Banking & Deputy Managing Director

              Fax
      number: (868) 622-4989

            

    

    

     

     

    FORM
OF TCDCL
DEED OF LICENCE

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.PROVISO

     

    
      	
            

    

     

    
      	
               
      

            	
              5.1
      Provided always that save as hereinbefore mentioned this Licence shall not
      extend to permit or authorize any further or other dealing with or
      assignment, demise or underlease of the Sub-Lease or any part
      thereof.

            

    

     

    
      	
               
      

            	
              5.2
      Except as otherwise provided in this Licence the provisions of the
      Sub-Lease are hereby confirmed in all respects and nothing contained in
      this Licence shall otherwise alter, affect, prevent or relieve the
      Landlord or the Tenant as the case may be of their respective rights,
      duties, obligations and liabilities under or in respect of the
      Sub-Lease.

            

    

     

    IN WITNESS WHEREOF this
Licence has been executed and delivered as a deed by TRINBAGO CULTURAL DEVELOPMENT COMPANY
LIMITED as of the

     

     day of , 2009 by PRICESMART
(TRINIDAD)

    LIMITED on the day of ,
2009 and by FIRSTCARIBBEAN

    INTERNATIONAL BANK (TRINIDAD
& TOBAGO) LIMITED
on the day of

    ,
2009.

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    THE
SCHEDULE ABOVE REFERRED TO:

    Part
1

     

    The Trinbago Leasehold
Premises

     

     

    Invaders Bay, Audrey Jeffers
Highway, Port of Spain.

     

    ALL AND SINGULAR those two
contiguous pieces or parcels of land comprising together 9.94 ACREAS (4.0236
hectares) situate at Invaders Bay, off the Audrey Jeffers Highway, in the City
of Port of Spain, in the Island of Trinidad THE FIRST THEREOF shown on the plan
(hereinafter referred to as "the said Plan") dated the 27th day of
November 2000 prepared by Brian Moses, Licensed Land Surveyor, marked "Z" and
annexed to the said Lease registered as No. DE 2001 0131 2393 D000, as Lot "1d"
comprising 5.25 ACRES (2.1245 hectares) and bounded -

     

    
      	
               
      

            	
              on
      the North: partly by other lands of the Port Authority of Trinidad and
      Tobago designated "Highway Reserve" separating the said lands from the
      Audrey Jeffers Highway and partly by other lands of the Port Authority of
      Trinidad and Tobago;

            

    

     

    on the
South: by a Road Reserve;

     

    
      	
               
      

            	
              on
      the East: partly by the said lands of the Port Authority of Trinidad and
      Tobago designated "Highway Reserve" separating the said lands from the
      Audrey Jeffers Highway and partly by Lot "le" hereinafter described;
      and

            

    

     

    
      	
              on
      the West:

            	
              partly
      by the said Road Reserve and partly by other lands
  of

            

    

     

    
      	
               
      

            	
              the
      Port Authority of Trinidad and
Tobago;

            

    

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    and THE
SECOND THEREOF shown as Lot "le" on the said Plan comprising 4.69 ACRES (1.8991
hectares) and bounded –

     

    
      	
               
      

            	
              on
      the North: partly by other lands of the Port Authority of Trinidad and
      Tobago designated "Highway Reserve" separating the said lands from the
      Audrey Jeffers Highway;

            

    

     

    on the
South:                                           by
a Road Reserve;

     

    on the
East:                                           by
the said Road Reserve; and

     

    on the
West:                                           by
Lot "1 d" hereinbefore described.

     

    Part
2

     

    The Leasehold
Premises.

     

    ALL that
floor space (erroneously referred to in the Second Part of the First Schedule to
the Deed of Sub-Lease registered as DE 2001 0202 5719 D001 described in Recital
C hereto as "that piece or parcel of land") comprising 0.5252 hectares in the
upper level of the building constructed on the parcel of land described in Part
1 of this Schedule situate at Invaders Bay, off the Audrey Jeffers Highway, in
the City of Port of Spain, in the island of Trinidad shown delineated and
coloured pink and marked "(A)" on the plan marked "Y" annexed to the said Deed
of Sub-Lease.

     

    The
Common Seal of TRINBAGO
CULTURAL DEVELOPMENT COMPANY LIMITED was hereto
affixed to this Deed order and authority of its Board of Directors and in
conformity with its By-Laws in the presence of:

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    Witness

     

    Signature:                                                                 And of me,

     

    Name:                                                        

    Occupation:                                                                 Attorney-at-Law

    Address:

     

    THE COMMON SEAL of PRICESMART (TRINIDAD) LIMITED was affixed
to THIS DEED by order and authority of its Board of Directors and in
conformity with its
By-Laws in the presence of:

     

    Witness

    Signature: And of me,

     

    Name:

     

    

    
      	
              Occupation:
      Address:

            	 
      	
              Attorney
      at Law

            
	 
      	 
      

    

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              THE COMMON SEAL of FIRSTCARIBBEAN INTERNATIONAL
      BANK (TRINIDAD
      & TOBAGO)
      LIMITED was
      affixed to THIS DEED by order and authority of its Board of
      Directors and in conformity with its By-Laws
      in the presence of:

            	 
      
	
              Witness
      Signature:

            	 
      	 
      	 
      	 
      	
              And
      of
      me,

            
	
              Name:

            	 
      	 
      	 
      	 
      	 
      	 
      
	
              Occupation:
      Address:

            	 
      	 
      	 
      	
              Attorney
      at Law

            
	 
      	 
      	 
      

    

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    DEED
OF LICENCE

     

    AMONG

     

    TRINBAGO
CULTURAL DEVELOPMENT COMPANY LIMITED

     

    As
Landlord

     

    AND

     

    PRICESMART
(TRINIDAD) LIMITED

     

    As
Tenant

     

    AND

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    FIRSTCARIBBEAN
INTERNATIONAL BANK (TRINIDAD & TOBAGO) LIMITED

     

    As
Lender

     

    Dated
the                                                        
day of                                      ,
2009.

     

    This
Licence was prepared by:

     

     

    M. Glenn
Hamel-Smith

     

    Attorney-at-Law

     

    M.
Hamel-Smith & Co.

     

    Eleven
Albion

     

    Cor. Dere
& Albion Streets

     

    Port of
Spain

     

    Admission
No. HAM2003004

    
      
        
          
            	
                     

                  

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    FIRSTCARIBBEAN
INTERNATIONAL BANK (TRINIDAD & TOBAGO) LIMITED (in its capacity as the
Bank)

     

    

    Name:
Title:

     

    PRICESMART
TRINIDAD LIMITED (in its capacity as Borrower)

     

    

      
        	 
      	 
      
	
                Name:
      Atul Kumar Patel

                Title:
      Director                                              

                 

              	
                Name: Lisa Maharaj

                Title: Regional Tax Manager

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]