Document:

Warrant Purchase Agreement Dated January 26, 2005 Between Company and IFC

  
 Exhibit 10.1

  
 WARRANT PURCHASE AGREEMENT 
  
 This WARRANT PURCHASE AGREEMENT (this “Agreement”) is made
and entered into as of January 26, 2005 by and between PriceSmart, Inc., a Delaware corporation (the “Company”), and the International Finance Corporation (the “Investor”). The Investor and the Company are referred
to herein as the “Parties.” 
  
 W I
T N E S S E T H: 
  
 WHEREAS, the Company desires to sell to the Investor, and the Investor desires to purchase from the Company, the Common Stock Purchase Warrant in the form attached hereto in Exhibit A (the
“Warrant”) to purchase 400,000 shares of the Company’s common stock, par value $.0001 per share (“Common Stock”), at an exercise price of $7.00 per share, on the terms and conditions set forth in this
Agreement; and 
  
 NOW, THEREFORE, in consideration of the
premises and the mutual promises herein made, and in consideration of the representations, warranties and covenants herein contained, the Parties agree as follows: 
  
 1. AGREEMENT TO PURCHASE AND SELL WARRANT. Subject to the terms and conditions of this Agreement and in
consideration of the Investor’s agreement to (i) waive provisions in its loan agreements with the Company restricting the Company’s ability to incur additional indebtedness in order to allow the Company to incur the bridge loan as
described in the Company’s Current Report on Form 8-K filed with the SEC on September 3, 2004 (the “Form 8-K”), (ii) release $5.2 million of the Company’s cash pledged as partial collateral, (iii) reduce the carrying costs
on that certain C Loan Agreement, dated as of January 26, 2001, among the Company, PSMT Caribe, Inc., a British Virgin Islands corporation and wholly owned subsidiary of the Company (“PSMT Caribe”), PSMT Trinidad/Tobago Ltd., a
company organized and existing under the laws of the Republic of Trinidad and Tobago and subsidiary of the Company (“PSMT Trinidad”), and the Investor (the “C Loan”), and (iv) eliminate the prepayment premium
provisions associated with the C Loan and that certain Loan Agreement, dated as of January 26, 2001, by and among the Company, PSMT Caribe, PSMT Trinidad and the Investor, the Company agrees to issue to the Investor on the date hereof (the
“Closing Date”), the Warrant. The shares of Common Stock issuable upon exercise of the Warrant are referred to as the “Warrant Shares.” The Warrant and the Warrant Shares are collectively referred to as the
“Securities.” 
  
 2. REPRESENTATIONS AND
WARRANTIES OF THE COMPANY. The Company hereby represents and warrants to the Investor that the statements in the following paragraphs of this Section 2 are true and correct: 
  
 2.1 Organization, Good Standing and Qualification. The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware. Schedule 2.1 sets forth the name and jurisdiction of organization of each of the 

  

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Company’s subsidiaries (“Subsidiaries”). The Company and each of its Subsidiaries are duly authorized to conduct business and are in
good standing under the laws of each jurisdiction where such qualification is required, except where the failure to be so qualified would not have a material adverse effect on the business, properties, financial condition, operations or results of
operations of the Company and its Subsidiaries, taken as a whole (a “Material Adverse Effect”). Neither the Company nor any of its Subsidiaries is in default under or in violation of any provision of its charter or bylaws. The
Company has full power and authority to execute and deliver this Agreement and to perform its obligations hereunder. The Company and each of the Subsidiaries have full power and authority to carry on their respective businesses as currently
conducted. 
  
 2.2 Authorization;
Enforceability. All corporate action on the part of the Company necessary for the authorization, execution and delivery of this Agreement, the performance of the obligations of the Company on the Closing Date, and the issuance and delivery of
the Securities, has been taken, and this Agreement has been duly executed and delivered by the Company and constitutes a valid and legally binding obligation of the Company, enforceable in accordance with its terms, except as may be limited by (i)
applicable bankruptcy, insolvency, reorganization or other laws of general application relating to or affecting the enforcement of creditors’ rights generally, (ii) the effect of rules of law governing the availability of equitable remedies and
(iii) the unenforceability under certain circumstances under law or court decisions or provisions providing for the indemnification of or contribution to a party with respect to a liability where such indemnification or contribution is contrary to
public policy or prohibited by law. 
  
 2.3
Valid Issuance of the Securities. 
  
 (a)
The Warrant has been duly and validly authorized by the Company and, constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms except as may be limited by applicable bankruptcy,
insolvency, reorganization or other laws of general application relating to or affecting the enforcement of creditors’ rights generally. 
  
 (b) The Warrant Shares have been duly and validly authorized by the Company and reserved for issuance and, when issued in accordance with
the terms of the Warrant, will have been duly and validly issued, fully paid and nonassessable and will be free of any taxes, liens or claims (other than those that may be created by the Investor) and free of any restrictions on transfer other than
restrictions on transfer under applicable federal and state securities laws and will be issued in compliance with all applicable federal and state securities laws. 
  
 2.4 Capitalization. The entire authorized capital stock of the Company consists of 20,000,000 shares
of Common Stock, of which 7,339,810 shares (not including 435,845 shares held by the Company as treasury shares) were issued and outstanding as of September 20, 2004, and 2,000,000 shares of preferred stock, par value $.0001 per share, of which no
shares are issued and outstanding as of the date of this Agreement. Except as set forth 

  

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in the SEC Documents (as defined below), there are no outstanding or authorized warrants, options, purchase rights, subscription rights, conversion rights,
exchange rights or other contracts, commitments or obligations that could require the Company or any of its Subsidiaries to issue, grant, deliver or sell or otherwise cause to be issued, granted, delivered or sold or become outstanding any capital
stock of the Company or any of its Subsidiaries, except for those granted in the ordinary course of business since the dates of the SEC Documents. There are no outstanding or authorized stock appreciation, phantom stock, profit participation or
similar rights with respect to the Company or any of its Subsidiaries. Except as set forth in the SEC Documents, to the Company’s knowledge, there are no voting trusts, proxies or other agreements or understandings with respect to the voting of
the capital stock of the Company. 
  
 2.5
Noncontravention. Neither the execution nor the delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will (i) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree,
ruling, charge or other restriction of any government, governmental agency or court to which the Company is subject or any provision of the charter or bylaws of the Company or (ii) conflict with, result in a breach of, constitute a default under,
result in the acceleration of, create in any party the right to accelerate, terminate, modify or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which the Company is a party or by
which the Company is bound or to which any of the Company’s assets is subject (or result in the imposition of any mortgage, pledge, lien, encumbrance, charge or other security interest upon any of such assets), except in either case, where such
violation, conflict or default would not have a Material Adverse Effect. Except for (i) the filing of a Form D with the Securities and Exchange Commission (the “SEC”) and (ii) filings which may be required under state securities
laws, the Company does not need to give any notice to, make any filing with, or obtain any authorization, consent or approval of any government or governmental agency in order for the Company and the Investor to consummate the transactions
contemplated by this Agreement. 
  
 2.6
Reports Filed Under the Securities Exchange Act of 1934; Financial Statements. The Company has timely filed all reports required to be filed by the Company under the Securities Exchange Act of 1934, as amended (the “1934
Act”). All such reports filed by the Company in the preceding twelve (12) months (the “SEC Documents”) contain all statements required to be stated therein in accordance with the 1934 Act and the rules and regulations
promulgated thereunder applicable to the SEC Documents, and the SEC Documents do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not
misleading. Any statements made in any such SEC Documents that are or were required to be updated or amended have been so updated or amended. As of their respective dates (except as they have been correctly amended), the financial statements of the
Company included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in
accordance with generally accepted accounting principles, consistently applied, during the periods involved (except (a) as may be otherwise indicated in such financial statements or the notes thereto or (b) in the case of unaudited interim
statements, to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present the financial position 

  

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of the Company as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited
statements, to normal year-end audit adjustments). Except as set forth in the SEC Documents, the Company has no liabilities, contingent or otherwise, other than (i) liabilities incurred in the ordinary course of business subsequent to the date of
such SEC Documents, (ii) obligations under contracts and commitments incurred in the ordinary course of business and not required under generally accepted accounting principles to be reflected in such SEC Documents, which liabilities and obligations
referred to in clauses (i) and (ii), individually or in the aggregate, would not have a Material Adverse Effect, and (iii) contingent liabilities which, individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect. 
  
 2.7 Absence of Litigation.
Except as disclosed in the SEC Documents, there is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company,
threatened against or affecting the Company, or any of its Subsidiaries, or any of their directors or officers in their capacities as such which could reasonably be expected to have a Material Adverse Effect. 
  
 2.8 No General Solicitation. Neither the Company, nor
any of its Affiliates, nor any person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act of 1933, as amended (the “1933
Act”)) in connection with the offer or sale of the Warrant. “Affiliate” has the meaning set forth in Rule 12b-2 promulgated under the 1934 Act as in effect on the date hereof. The term “Affiliated” has a
correlative meaning. 
  
 2.9 Securities
Laws. Neither the Company, nor any of its Affiliates, nor any person acting on its or their behalf, has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security under circumstances that would
require registration of the Warrants being offered hereby under the 1933 Act or cause the offering of these Warrants to be integrated with any prior offering of securities of the Company for purposes of the 1933 Act or any applicable stockholder
approval provisions, including, without limitation, Rule 4350(i) of the Nasdaq Stock Market or any similar rule. Assuming the truth and accuracy of the representations and warranties of the Investor set forth in Section 3 of this Agreement, Investor
will not be a statutory underwriter within the meaning of Section 2(a)(11) of the 1933 Act. 
  
 2.10 Transactions with Affiliates. Other than the stock options granted pursuant to the Company’s Option Plans and
transactions disclosed in the SEC Documents, none of the officers, directors, or employees of the Company is presently a party to any transaction with the Company or any of its Subsidiaries (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or
such employee or, to the knowledge of the Company, any corporation, partnership, trust or entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner. 
  

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 2.11 Foreign Corrupt Practices. Neither the Company, nor any of its Subsidiaries,
nor any director, officer, agent, employee or other person acting on behalf of the Company or any of its Subsidiaries has, in the course of its actions for, or on behalf of, the Company (i) used any corporate funds for any unlawful contribution,
gift, entertainment or other unlawful expenses relating to political activity, (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds, (iii) violated (or is in violation of)
any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee.

  
 3. REPRESENTATIONS AND WARRANTIES OF THE
INVESTOR. The Investor represents and warrants to the Company that the statements in the following paragraphs of this Section 3 are true and correct: 
  

3.1 Organization and Qualification. The Investor is an international organization established by Articles of Agreement among its
member countries. The Investor has all requisite power and authority to enter into and perform this Agreement and to carry out the transactions contemplated by this Agreement. 
  
 3.2 Authorization. All action on the part of the Investor necessary for the authorization, execution
and delivery of this Agreement and the performance of all obligations of the Investor hereunder has been taken, and this Agreement has been duly executed and delivered by the Investor and constitutes a valid and legally binding obligation of the
Investor, enforceable in accordance with its terms, except as may be limited by the Investor’s Articles of Agreement and applicable law, including the International Organizations Immunity Act. 
  
 3.3 Purchase for Own Account. The Securities to be
purchased by the Investor hereunder will be acquired for investment for the Investor’s own account, not as a nominee or agent, and not with a view to the public distribution thereof within the meaning of the 1933 Act, and the Investor has no
present intention of selling or otherwise distributing the same, except in compliance with the requirements of, or pursuant to a valid exemption from, such Act. The Investor does not have any contract, undertaking, agreement or arrangement with any
person to sell, transfer or grant participations to such person or to any third person, with respect to the Securities. The Investor also represents that it has not been formed for the specific purpose of acquiring the Securities. 
  
 3.4 Accredited Investor Status. The Investor is an
“accredited investor” within the meaning of Regulation D promulgated under the 1933 Act. By reason of its business and financial experience, sophistication and knowledge, the Investor is capable of evaluating the risks and merits of the
investment made pursuant to this Agreement. The Investor confirms that it is able (i) to bear the economic risk of this investment, as well as other risk factors as more fully set forth herein and in the SEC Documents, (ii) to hold the Securities
for an indefinite period of time, and (iii) to bear a complete loss of the Investor’s investment; and the Investor represents that it has sufficient liquid assets so that the illiquidity associated with this investment 

  

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will not cause any undue financial difficulties or affect the Investor’s ability to provide for its current needs and possible financial contingencies.

  
 3.5 Restricted Securities. The
Investor understands that the Securities are characterized as “restricted securities” under the 1933 Act inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under the 1933 Act and
applicable regulations thereunder such securities may be resold without registration under the 1933 Act only in certain limited circumstances. In this connection, the Investor represents that it is familiar with Rule 144 of the U.S. Securities and
Exchange Commission, as presently in effect, and understands the resale limitations imposed thereby and by the 1933 Act. The Investor understands that the Company is under no obligation to register any of the securities sold hereunder, except as
provided in Section 5 below. 
  
 3.6 Due
Diligence and No Solicitation. The Investor has had a reasonable opportunity to conduct comprehensive due diligence and to ask questions of and receive answers from the Company and its officers, and all such questions have been answered to the
full satisfaction of the Investor. At no time was the Investor presented with or solicited by any leaflet, public promotional meeting, circular, newspaper or magazine article, radio or television advertisement or any other form of general
advertising. Neither such inquiries nor any other due diligence investigation conducted by Investor or its counsel or any of its representatives shall modify or affect Investor’s right to rely on the Company’s representations and
warranties in this Agreement. 
  
 3.7 Further
Limitations on Disposition. Without in any way limiting the representations set forth above, the Investor further agrees not to make any disposition of all or any portion of the Securities unless and until: 
  
 (a) there is then in effect a registration statement under
the 1933 Act covering such proposed disposition and such disposition is made in accordance with such registration statement; or 
  
 (b)(i) the Investor shall have notified the Company of the proposed disposition and shall have furnished the Company with a statement of
the circumstances surrounding the proposed disposition, which in the case of a sale to be made pursuant to Rule 144 shall be limited to customary representations regarding compliance with the requirements of Rule 144 regarding volume, manner of sale
and other matters, and (ii) the Investor shall have furnished the Company at the Investor’s expense an opinion of counsel, reasonably satisfactory to the Company that such disposition will not require registration of such securities under the
1933 Act; provided that the Company shall not require an opinion of counsel for routine sales of shares pursuant to Rule 144. 
  

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 3.8 Legends. It is understood that the certificates evidencing the Securities will
bear the legends set forth below: 
  
 (a) THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE
TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. 
  
 (b) Any legend required by the laws of the State of California, including any legend required by the California Department of
Corporations. 
  
 The legend set forth above shall be removed and the Company
shall issue a certificate without such legend to the holder of Securities upon which it is stamped, if (a) the Securities represented by such certificate have been sold pursuant to an effective registration statement under the 1933 Act or (b) in
connection with the resale of such Securities, such holder provides the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of
such Security may be made without registration under the 1933 Act or (c) such holder provides the Company with reasonable assurances that such Securities have been sold under Rule 144 or can be sold under Rule 144(k). 
  
 4. COVENANTS. The Company agrees as follows: 
  
 4.1 Form D. The Company agrees to file a notice of
sale on Form D with respect to the Securities as required under Regulation D promulgated under the 1933 Act and to provide a copy thereof to the Investor promptly after such filing. 
  
 4.2 No Integrated Offerings. The Company shall not make any offers or sales of any security (other
than the Securities) under circumstances that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause this offering of Securities to be integrated with any other offering of securities by the Company.

  

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 5. REGISTRATION STATEMENT FOR RESALE OF THE WARRANT SHARES. 
  
 5.1 Registration Statement. As promptly as
practicable, but not later than January 31, 2005, the Company will prepare and file with the SEC a registration statement under the 1933 Act registering all of the Warrant Shares issuable upon exercise of the Warrant for resale to the public by the
Investor pursuant to such registration statement (the “Resale Registration Statement”) and the prospectus included therein, free and clear of any restrictions under the 1933 Act except for prospectus delivery requirements. The
Company shall use all reasonable efforts to cause the Resale Registration Statement to become effective as promptly as practicable thereafter and, subject to Sections 5.3(b) and 5.4, to remain effective until the earlier of (i) two years from the
Closing Date and (ii) such time as the Investor may freely sell to the public the Warrant Shares held by it without registration and without regard to volume or manner of sale (the “Registration Period”). 
  
 5.2 Piggyback Registration Rights. 
  
 (a) Right to Piggyback. If, at any time during the
period commencing upon the effectiveness of the Resale Registration Statement and ending upon the earlier of (i) the end of the Registration Period and (ii) such time as the Investor has completed its resale of the Warrant Shares (the
“Resale Period”), the Company proposes to register any shares of Common Stock with the SEC under the 1933 Act in connection with the underwritten public offering of such shares, and the registration form to be used may be used for
the registration of the Warrant Shares (a “Piggyback Registration”), the Company (1) will give written notice (the “Piggyback Notice”) to the Investor no later than fifteen (15) days prior to the anticipated filing
date of its intention to effect such a registration, which Piggyback Notice will specify the proposed offering price (or reasonable range thereof), the kind and number of securities proposed to be registered, the distribution arrangements and such
other information that at the time would be appropriate to include in such notice, and (2) will, subject to Section 5.2(b), include in such Piggyback Registration all Warrant Shares with respect to which the Company has received written requests for
inclusion therein within ten (10) days after the date of the Piggyback Notice. Subject to Section 5.2(b), such Warrant Shares shall be included in the underwriting on the same terms and conditions as the securities otherwise being sold through the
underwriters. 
  
 (b) Priority on Piggyback
Registrations. If the managing underwriter or underwriters in any Piggyback Registration advise the Company that in its or their reasonable opinion the number or kind of securities proposed to be sold in such registration (including
Warrant Shares to be included pursuant to Section 5.2(a)) is inconsistent with that which can be sold in such registration without having a material adverse effect on the success of the offering (including, without limitation, an adverse impact on
the selling price or the number of securities that any participant may sell), the Company will include in such registration the number of securities, if any, which, in the opinion of such underwriter or underwriters can be sold, in the following
order of priority: (i) first, the shares the Company proposes to sell for its own account and the Warrant Shares requested to be included in such registration by the Investor and other holders of similar piggyback registration rights, pro rata among
the Company, the Investor and 

  

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such other holders, on the basis of the number of shares (including Warrant Shares) proposed or requested to be included in such registration by the Company,
the Investor and such holders, and (ii) second, any securities held by any other persons to be included in such Piggyback Registration, pro rata among the holders of such securities, on the basis of the number of shares of such securities requested
to be included by such holders. 
  
 5.3
Company Obligations. In connection with the registration of the Warrant Shares pursuant to this Section 5, the Company shall do the following: 
  
 (a) Prepare and deliver to the Investor as many copies of the Prospectus (as hereafter defined) as the Investor may reasonably request;

  
 (b) Comply with all requirements imposed upon
it by the 1933 Act, by the 1934 Act and by the undertakings in any registration statement filed pursuant to this Section 5 (any such registration statement, including the Resale Registration Statement, the “Registration Statement”)
so far as is necessary to permit the continuance of resales of the Warrant Shares by the Investor to the public, free and clear of any restrictions under the 1933 Act except for prospectus delivery requirements. If, at any time during the Resale
Period, an event shall occur which makes it necessary to amend or supplement the Registration Statement or the Prospectus to comply with law or with the rules and regulations of the SEC, the Company shall promptly notify the Investor of the proposed
amendment or supplement and promptly prepare and furnish to the Investor such number of copies of an amended or supplemented Registration Statement and/or Prospectus that complies with law and with such rules and regulations as the Investor may
reasonably request. The Investor shall suspend its sales of the Warrant Shares pending the preparation and delivery of such amendment or supplement and until such time as each such amendment or amendments to the Registration Statement have been
declared effective by the SEC. The Company authorizes the Investor, and any brokers or dealers effecting sales of the Warrant Shares for the account of the Investor, to use the Prospectus, as from time to time amended or supplemented, in connection
with the sale of the Warrant Shares in accordance with applicable provisions of the 1933 Act and state securities laws. For purposes of this Agreement, the term “Prospectus” means the final prospectus relating to the Warrant Shares
most recently included in the Registration Statement or filed by the Company pursuant to Rule 424 of the 1933 Act and any amendments or supplements thereto filed by the Company pursuant to Rule 424 of the 1933 Act and shall include all documents or
information incorporated in any such prospectus by reference; 
  
 (c) Promptly advise the Investor (i) when any post-effective amendment of the Registration Statement is filed with the SEC and when any post-effective amendment becomes effective; (ii) of any request made by the SEC
for any amendment of or supplement to the Registration Statement or the Prospectus or for additional information relating thereto; (iii) of any suspension or threatened suspension of the use of any Prospectus in any state; and (iv) of any
proceedings commenced or threatened to be commenced by the SEC or any state securities commission that would result in the issuance of any stop order or other order or suspension of use. The Company agrees to use its reasonable efforts to prevent or
promptly remove any stop order or other order preventing or suspending the use of the Prospectus during 

  

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the Resale Period and to comply with any such request by the SEC to amend or supplement the Prospectus; 
  
 (d) Take such action as shall be necessary to qualify and
maintain the qualification of the Warrant Shares covered by such registration under such state securities or “blue sky” laws for offers and sales to the public during the Resale Period as the Investor shall reasonably request;
provided, however, that the Company shall not be obligated to qualify as a foreign corporation to do business under the laws of or become subject to taxation in, any jurisdiction in which it shall not be then qualified, or to file any
general consent to service of process; 
  
 (e)
Permit counsel designated by the Investor to review the Registration Statement and all amendments and supplements thereto a reasonable time prior to their filing with the SEC; 
  
 (f) Provide a transfer agent and registrar, which may be a single entity, for the Warrant Shares not later
than the effective date of the Registration Statement; 
  
 (g) Prepare and file with the SEC, at the request of the Investor, such amendments (including post-effective amendments) and supplements to the Registration Statement and the prospectus used in connection therewith as may be reasonably
necessary or appropriate to change the plan of distribution set forth in the Registration Statement; and 
  
 (h) Cause the Warrant Shares to be registered pursuant to Section 12(b) or 12(g) of the 1934 Act and continually quoted or listed, subject
to notice of issuance, on the Nasdaq National Market or a national securities exchange, if such exchange is the principal market on which the Warrant Shares are traded, and not subject to any restriction or suspension from trading on the Nasdaq
National Market or such national securities exchange; provided, however, that the Company may deregister the Company’s Common Stock registered pursuant to Section 12(b) or 12(g) of the 1934 Act if such deregistration is in
connection with a merger, dissolution or other transaction in which the stockholders of the Company receive prior to such deregistration either cash or securities that are listed on the Nasdaq National Market or a national securities exchange or
some combination of cash and such securities; provided, further, that the Company may delist the Warrant Shares from trading on the Nasdaq National Market or national securities exchange if the Company is concurrently listing such
stock on the New York Stock Exchange or the American Stock Exchange. 
  
 (i) With a view to making available to the Investor the benefits of certain rules and regulations of the SEC that at any time permit the sale of the Warrant Shares to the public without registration, the Company
agrees to: 
  
 (A) make and keep public
information available, as those terms are understood and defined in Rule 144 under the 1933 Act; 
  

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 (B) file with the SEC in a timely manner all reports and other documents required of the
Company under the 1934 Act; and 
  
 (C) so long
as the Investor owns any unregistered Warrant Shares, furnish to the Investor upon any reasonable request a written statement by the Company as to its compliance with the public information requirements of Rule 144 under the 1933 Act, and of the
1934 Act, a copy of the most recent annual or quarterly report of the Company, and the other SEC reports and documents of the Company as the Investor may reasonably request in availing itself of any rule or regulation of the SEC allowing an Investor
to sell any Warrant Shares without registration (excluding any reports or documents of the Company that the Company, in its sole discretion, deems confidential). 
  
 5.4 Restrictions on Registrations. If at any time or from time to time after the effective date of
the Registration Statement, the Company notifies the Investor in writing of the existence of a Potential Material Event (as defined below), the Investor shall not offer or sell any Warrant Shares or engage in any other transaction involving or
relating to Warrant Shares from the time of the giving of notice with respect to a Potential Material Event until the Investor receives written notice from the Company that such Potential Material Event either has been disclosed to the public or no
longer constitutes a Potential Material Event. If a Potential Material Event shall occur prior to the date the Registration Statement is filed, then notwithstanding Section 5.1, the Company’s obligation to file the Registration Statement shall
be delayed without penalty until such Potential Material Event either has been disclosed to the public or no longer constitutes a Potential Material Event. “Potential Material Event” means any of the following: (i) the possession by
the Company of material information not ripe for disclosure in the Registration Statement, as determined in good faith by the Chief Executive Officer or the Board of Directors of the Company that disclosure of such information in the Registration
Statement would be detrimental to the business and affairs of the Company; or (ii) any material engagement or activity by the Company which would, in the good faith determination of the Chief Executive Officer or the Board of Directors of the
Company, be adversely affected by disclosure in the Registration Statement at such time, which determination shall be accompanied by a good faith determination by the Chief Executive Officer or the Board of Directors of the Company that the
Registration Statement would be materially misleading absent the inclusion of such information. In no event shall the suspension of the Registration Statement (or the permissible delay in filing the Resale Registration Statement) exceed 90 days as a
result of a Potential Material Event. 
  
 5.5
Certain Obligations of Investor. In connection with the registration of the Warrant Shares pursuant to this Section 5: 
  
 (a) The Investor shall cooperate as reasonably requested by the Company with the Company in connection with the preparation of the
Registration Statement, and for so long as the Company is obligated to file and keep effective the Registration Statement, shall provide to the Company, in writing, for use in the Registration Statement, all such information regarding such Investor
and its plan of distribution of the Warrant Shares as may be reasonably necessary to enable the Company to prepare the Registration Statement and the 

  

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Prospectus, to maintain the currency and effectiveness thereof and otherwise to comply with all applicable requirements of law in connection therewith.

  
 (b) The Investor agrees to promptly furnish
additional information required to be disclosed in order to make the information previously furnished to the Company by the Investor not materially misleading. The Investor agrees to furnish all such information and to cooperate with and provide
assistance to the Company, as the Company may reasonably request, in connection with any registration and sale of the Warrant Shares. 
  
 (c) The Investor hereby covenants with the Company not to make any sale of the Warrant Shares without effectively causing the prospectus
delivery requirements under the 1933 Act to be satisfied unless the sale is made pursuant to an exemption from registration. 
  
 (d) The Investor acknowledges and agrees that the Warrant Shares sold pursuant to the Registration Statement are not transferable on the
books of the Company unless the stock certificate submitted to the transfer agent evidencing the Warrant Shares is accompanied by a certificate reasonably satisfactory to the Company to the effect that (i) the Warrant Shares have been sold in
accordance with this Agreement and the Registration Statement and (ii) the requirement of delivering a current prospectus has been satisfied. 
  
 (e) The Investor is hereby advised that the anti-manipulation provisions of Regulation M under the 1934 Act may apply to sales of the
Warrant Shares offered pursuant to the Registration Statement and agrees not to take any action with respect to any distribution deemed to be made pursuant to the Registration Statement that constitutes a violation of Regulation M under the 1934 Act
or any other applicable rule, regulation or law. 
  
 (f) At the end of the Registration Period, the Investor shall discontinue sales of Warrant Shares pursuant to the Resale Registration Statement upon receipt of notice from the Company of its intention to remove from registration the Warrant
Shares covered thereby which remain unsold, and the Investor shall promptly notify the Company of the number of Warrant Shares registered that remain unsold immediately upon receipt of the notice from the Company. 
  
 5.6 Indemnification of the Investor. The Company
shall indemnify, defend and hold harmless the Investor, its officers and its directors and any controlling persons of the Investor against and in respect of any losses, claims, damages or liabilities, joint or several (including legal or other fees
and expenses reasonably incurred by any of them in connection with investigating or defending any such loss, claim, damage or liability) to which the Investor or any such persons may become subject under the 1933 Act or otherwise insofar as such
losses, claims, damages or liabilities (or actions with respect thereto) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the Registration Statement or Prospectus, or arise out of or
are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except to the extent that any such untrue statement or omission is based

  

 12 

 
upon written information supplied by the Investor or by any of its representatives for use in such Registration Statement; provided, however,
this indemnity agreement shall not inure to the benefit of the Investor on account of any loss, claim, damage, liability or action arising from the sale of the Warrant Shares to any person if the Investor fails to send or give a copy of the
Prospectus (as amended or supplemented) to such person. 
  
 5.7 Indemnification of the Company. The Investor shall indemnify, defend and hold harmless the Company, its officers and its directors and any controlling persons of the Company against and in respect of any
losses, claims, damages or liabilities, joint or several (including legal or other fees and expenses reasonably incurred by any of them in connection with investigating or defending any such loss, claim, damage or liability) to which the Company or
any such persons may become subject under the 1933 Act or otherwise insofar as such losses, claims, damages or liabilities (or actions with respect thereto) arise out of or are based upon any untrue statement or alleged untrue statement of any
material fact contained in the Registration Statement, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, but
only in each case to the extent that any such untrue statement or omission is based upon written information supplied by the Investor or its representatives for use in such Registration Statement; provided that in no event shall any indemnification
obligation on the part of the Investor under this Section 5.7 exceed the net proceeds from the offering received by the Investor. 
  
 5.8 Contribution. If for any reason the indemnification provided for in the preceding Sections 5.6 or 5.7 is unavailable to an
indemnified party as contemplated by such clauses, then the indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of such loss, claim, damage or liability in such proportion as is appropriate to
reflect not only the relative benefits received by the indemnified party and the indemnifying party, but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations; provided
that in no event shall any contribution obligation on the part of the Investor under this Section 5.8 exceed the net proceeds from the offering received by the Investor. 
  
 5.9 Procedure for Indemnification. The procedure for indemnification under this Section 5 shall be as
follows: 
  
 (a) Notice. The
indemnified party shall promptly give notice to the indemnifying party of any pending or threatened claim giving rise to indemnification under Sections 5.6 or 5.7 (a “Claim”), specifying the factual basis for the Claim and the
approximate amount thereof. 
  
 (b) Control of
Claim and Settlement. With respect to any Claim as to which a person is entitled to indemnification hereunder, the indemnifying party shall have the right at its own expense to participate in or assume control of the defense of the Claim,
and the indemnified party shall cooperate fully with the indemnifying party, subject to reimbursement for actual out-of-pocket expenses incurred by the indemnified party as the result of a request by 

  

 13 

 
the indemnifying party; provided, however, that such indemnifying party shall not be entitled to assume such defense and an indemnified party
shall have the right to retain its own counsel with the reasonable fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation by such counsel of the
indemnified party and the indemnifying party would be inappropriate due to actual or potential conflicts of interest between such indemnified party and any other party represented by such counsel in such proceeding or the actual or potential
defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and any such indemnified party reasonably determines that there may be legal defenses available to such indemnified party which are in
conflict with those available to such indemnifying party. If the indemnifying party elects to assume control of the defense of any Claim, the indemnified party shall have the right to participate in the defense of the Claim at its own expense. If
the indemnifying party does not elect to assume control or otherwise participate in the defense of any Claim, it shall be bound by the results obtained by the indemnified party with respect to the Claim. No indemnifying party shall be liable for any
settlement effected without its written consent, not to be unreasonably withheld or delayed. 
  
 (c) Survival. Notwithstanding any other provision of this Agreement, the indemnification and contribution obligations of the
parties hereunder shall survive indefinitely. 
  
 5.10 Expenses. The Company shall pay all expenses incident to the registration of the Warrant Shares under this Section 5, including without limitation, all registration and filing fees, all fees and expenses of complying with
securities or blue sky laws, all word processing, duplicating and printing expenses, and the fees and disbursements of counsel for the Company and its independent public accountants. With respect to sales of the Warrant Shares, the Investor shall
pay all underwriting discounts and commissions and fees of underwriters, selling brokers, dealer managers or similar securities industry professionals relating to any resale of the Warrant Shares by the Investor, and transfer taxes, if any. On the
Closing Date, the Company shall reimburse Investor for the out-of-pocket expenses reasonably incurred by Investor and its affiliates and advisors in connection with the negotiation, preparation, execution and delivery of this Agreement and the other
agreements to be executed in connection herewith, and the registration of the Warrant Shares, including, without limitation, in conducting Investor’s and its advisors’ reasonable due diligence and Investor’s reasonable attorneys’
fees and expenses. 
  
 5.11 Compliance.
The Investor will observe and comply with the 1933 Act, the 1934 Act and the general rules and regulations thereunder, as now in effect and as from time to time amended and including those hereafter enacted or promulgated, in connection with any
offer, sale, pledge, transfer or other disposition of the Warrant Shares or any part thereof. 
  
 6. MISCELLANEOUS. 
  
 6.1 Survival of Warranties. The representations, warranties and covenants of the Company and the Investor contained in or made pursuant to this Agreement shall survive the 

  

 14 

 
execution and delivery of this Agreement for a period of fifteen (15) months from the Closing Date and shall in no way be affected by any investigation of
the subject matter thereof made by or on behalf of the Investor or the Company, as the case may be. 
  
 6.2 Successors and Assigns. This Agreement shall bind and inure to the benefit of the Company and the Investor and their respective
successors and permitted assigns provided, that, the Company may not assign its rights or obligations under this Agreement to any person without the prior written consent of the Investor; provided, further, that the Investor may not assign its
rights or obligations under this Agreement to any person (other than an affiliate) without the prior written consent of the Company, which consent shall not be unreasonably withheld. 
  
 6.3 Applicable Law and Jurisdiction. 
  
 (a) This Agreement is governed by, and shall be construed in accordance with, the laws of the State of New
York, United States of America. 
  
 (b) The
Company irrevocably agrees that any legal action, suit or proceeding arising out of or relating to this Agreement may be brought by the Investor in the courts of the United States of America located in the Southern District of New York. By the
execution of this Agreement, the Company irrevocably submits to the non-exclusive jurisdiction of any such court in any such action, suit or proceeding. Final judgment against the Company in any such action, suit or proceeding shall be conclusive
and may be enforced in any other jurisdiction, by suit on the judgment, a certified or exemplified copy of which shall be conclusive evidence of the judgment, or in any other manner provided by law. 
  
 (c) Nothing in this Agreement shall affect the right of the
Investor to commence legal proceedings or otherwise sue the Company in any other appropriate jurisdiction, or concurrently in more than one jurisdiction, or to serve process, pleadings and other legal papers upon the Company in any manner authorized
by the laws of any such jurisdiction. 
  
 (d) The
Company also irrevocably consents to the service of summons, complaint or other legal process in any action, suit or proceeding being made out of courts situated in New York, New York by mailing copies of the papers by registered United States air
mail, postage prepaid, to the Company at its address indicated therefor in Section 6.6 of this Warrant or subsequently modified by written notice to the Holder. 
  
 (e) The Company hereby irrevocably consents that service in the manner provided in Section 6.3 in any
action, suit or proceeding will be deemed personal service, will be accepted by the Company as such and will be valid and binding upon the Company for all purposes of any such action, suit or proceeding. 
  

 15 

 (f) The Company irrevocably waives to the fullest extent permitted by applicable law:

  

	 	(i)	any objection which it may have now or in the future to the laying of the venue of any action, suit or proceeding in any court referred to in this Section; 

 

	 	(ii)	any claim that any such action, suit or proceeding has been brought in an inconvenient forum; and 

  

	 	(iii)	any and all rights to demand a trial by jury in any such action, suit or proceeding brought against the Company by the Investor. 

  
 (g) To the extent the Company may be entitled in any
jurisdiction to claim for itself or its assets immunity in respect of its obligations under this Agreement from any suit, execution, attachment (whether provisional or final, in aid of execution, before judgment or otherwise) or other legal process
or to the extent that in any jurisdiction that immunity (whether or not claimed) may be attributed to it or its assets, the Company irrevocably agrees not to claim and irrevocably waives such immunity to the fullest extent permitted now or in the
future by the laws of such jurisdiction. 
  
 (h)
The Company hereby acknowledges that the Investor shall be entitled under applicable law, including the provisions of the International Organizations Immunities Act, to immunity from a trial by jury in any action, suit or proceeding arising out of
or relating to this Agreement or the transactions contemplated hereby brought against the Investor in any court of the United States of America. The Company hereby waives any and all rights to demand a trial by jury in any action, suit or proceeding
arising out of or relating to this Agreement to which the Company is a party or the transactions contemplated by this Agreement, brought against the Investor in any forum in which the Investor is not entitled to immunity from a trial by jury.

  
 (i) To the extent that the Company may, in
any suit, action or proceeding brought in any of the courts referred to in Section 6.3(b) or elsewhere arising out of or in connection with this Agreement, be entitled to the benefit of any provision of law requiring the Investor in such suit,
action or proceeding to post security for such costs of the Company, or to post a bond or to take similar action, the Company hereby irrevocably waives such benefit, in each case to the fullest extent now or in the future permitted under the laws of
the jurisdiction in which such court is located. 
  
 6.4 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 6.5 Headings. The headings and captions used in this
Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. All references in this Agreement to sections, paragraphs, exhibits and schedules shall, unless 

  

 16 

 
otherwise provided, refer to sections and paragraphs hereof and exhibits and schedules attached hereto, all of which exhibits and schedules are incorporated
herein by this reference. 
  
 6.6 Notices.
All notices, requests, demands, claims and other communications hereunder will be in writing. Any notice, request, demand, claim or other communication hereunder shall be deemed duly given if (and then two business days after) it is sent by
registered or certified mail, return receipt requested, postage prepaid and addressed to the intended recipient as set forth below: 
  

			
	To the Company:	  	PriceSmart, Inc.
	 	  	9740 Scranton Road
	 	  	San Diego, CA 92121-1745
	 	  	Attn: Robert M. Gans, Esq.
	 	  	Telephone: (858) 404-8821
	 	  	Facsimile: (858) 404-8828
		
	with a copy to:	  	Latham & Watkins LLP
	 	  	12636 High Bluff Drive, Suite 300
	 	  	San Diego, CA 92130
	 	  	Attn: Robert E. Burwell, Esq.
	 	  	Telephone: (858) 523-5400
	 	  	Facsimile: (858) 523-5450
		
	To the Investor:	  	International Finance Corporation
	 	  	2121 Pennsylvania Avenue, N.W.
	 	  	Washington, DC 20433
	 	  	Attn: Director, Latin America and
	 	  	Caribbean Department
	 	  	Telephone: (202) 473-5222
	 	  	Facsimile: (202) 974-4390
		
	with a copy to:	  	Becker, Glynn, Melamed & Muffly LLP
	 	  	299 Park Avenue
	 	  	New York, New York 10171
	 	  	Attn: Peter Hosinski, Esq.
	 	  	Telephone: (212) 888-3033
	 	  	Facsimile: (212) 888-0255

  
 Any Party may send any notice,
request, demand, claim or other communication hereunder to the intended recipient at the address set forth above using any other means (including personal delivery, expedited courier, messenger service or ordinary mail), but no such notice, request,
demand, claim or other communication shall be deemed to have been duly given unless and until it actually is received by the intended recipient. Any Party may change the address to which notices, requests, demands, claims and other communications
hereunder are to be delivered by giving the other Parties notice in the manner herein set forth. 
  

 17 

 6.7 No Finder’s Fees. Each of the Company and the Investor represents that it
neither is nor will be obligated for any finder’s or broker’s fee or commission in connection with this transaction. The Company agrees to indemnify and hold harmless the Investor from any liability for any commission or compensation in
the nature of a finder’s or broker’s fee (and any asserted liability) for which the Company or any of its officers, employees or representatives is responsible. 
  
 6.8 Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term
of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the Investor. 
  
 6.9 Attorneys’ Fees. If any action at law or in equity is necessary to enforce or interpret the
terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 
  
 6.10 Severability. If one or more provisions of this
Agreement are held to be unenforceable under applicable law, such provision(s) shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision(s) were so excluded and shall be enforceable in
accordance with its terms. 
  
 6.11 Entire
Agreement. This Agreement, together with all exhibits and schedules hereto, constitutes the entire agreement and understanding of the parties with respect to the subject matter hereof and supersedes any and all prior negotiations,
correspondence, agreements, understandings duties or obligations between the parties with respect to the subject matter hereof. 
  
 6.12 Public Announcements. The Investor and the Company shall consult with each other before issuing any press release with respect
to this Agreement or the transactions contemplated hereby and neither shall issue any such press release or make any such public statement without the prior consent of the other, which consent shall not be unreasonably withheld; provided, however,
that a Party may, without the prior consent of the other Party, issue such press release or make such public statement as may upon the advice of counsel be required by law if it has used commercially reasonable efforts to consult with the other
Party prior thereto. The Investor hereby consents to the filing of this Agreement by the Company with the SEC. 
  
 6.13 Further Assurances. From and after the date of this Agreement, upon the request of the Investor or the Company, the Company
and the Investor shall execute and deliver such instruments, documents or other writings as may be reasonably necessary or desirable to confirm and carry out and to effectuate fully the intent and purposes of this Agreement. 
  
 6.14 FIRPTA Certificate. For so long as the Investor
owns any of the Securities, the Company covenants to use all reasonable efforts to provide to Investor, from time to time, as promptly as reasonably practicable after request therefor, a statement from the 

  

 18 

 
corporation pursuant to Treasury Regulation Sec. 1.897-2(g)(1) or such other documentation as may be reasonably necessary for the Company to comply with
Section 897 of the Internal Revenue Code, as amended, in connection with any sale of Securities. 
  
 [Remainder of Page Intentionally Left Blank] 
  

 19 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

  

			
	THE COMPANY:
	
	 PRICESMART, INC.

		
	 By:
	 	/s/ JOHN M. HEFFNER        
	 Name:
	 	John M. Heffner
	 Title:
	 	Chief Financial Officer

  

			
	THE INVESTOR:
	
	 INTERNATIONAL FINANCE CORPORATION

		
	 By:
	 	/s/ STANLEY R. GREIG        
	 Name:
	 	Stanley R. Greig
	 Title:
	 	Manager, Global Manufacturing and Services Department

  
 SIGNATURE PAGE TO THE

 WARRANT PURCHASE AGREEMENT 
  

 1 of 1 

  
 EXHIBIT A 
  
 FORM OF WARRANT 
  

 EXHIBIT A 

  
 SCHEDULE 2.1 
  

			
	 Subsidiary

	  	 Jurisdiction of Organization

	Ventures Services, Inc.	  	Delaware
		
	PriceSmart Real Estate, S.A.	  	Panama
		
	PriceSmart Panama, S.A.	  	Panama
		
	Distribuidora Su Bodega, S.A.	  	Panama
		
	PriceSmart (Guatemala), S.A.	  	Guatemala
		
	Gestiones Mercantiles, S.A.	  	Guatemala
		
	PSMT Caribe, Inc.	  	British Virgin Islands
		
	PriceSmart El Salvador, S.A. de C.V.	  	El Salvador
		
	Inmobiliaria PriceSmart El Salvador, S.A. de C.V.	  	El Salvador
		
	Prismar de Costa Rica, S.A.	  	Costa Rica
		
	Pricsmarlandco, S.A.	  	Costa Rica
		
	Promotora PS Escazu, S.A.	  	Costa Rica
		
	Corporacion BECR de Occidente, S.A.	  	Costa Rica
		
	PriceSmart Membership Shopping, S.A.	  	Costa Rica
		
	PriceSmart Honduras, S.A. de C.V.	  	Honduras
		
	PriceSmart Dominicana, S.A.	  	Dominican Republic
		
	Inmobiliaria PriceSmart, S.A.	  	Dominican Republic
		
	PriceSmart Exempt SRL	  	Barbados
		
	PSMT Trinidad/Tobago Limited	  	Trinidad/St. Lucia
		
	PriceSmart (Trinidad) Limited	  	Trinidad
		
	PS Operations, Ltd.	  	Trinidad
		
	PSMT, LLC	  	U.S. Virgin Islands
		
	PSMT Philippines, Inc.	  	Philippines
		
	PriceSmart Holdings, Inc.	  	St. Lucia
		
	PSMT (Barbados), Inc.	  	Barbados
		
	Island Foods and Distributors, N.V.	  	Aruba
		
	PSMT Guam, Inc.	  	Guam
		
	PriceSmart Jamaica (SL), Inc.	  	St. Lucia
		
	PSMT (Jamaica), Limited	  	Jamaica
		
	PSMT Realty (Jamaica), Ltd.	  	Jamaica
		
	PSMT Mexico S.A. de C.V.	  	Mexico
		
	PriceSmart Mexico S.A. de C.V.	  	Mexico
		
	Inmobiliaria PriceSmart Mexico S.A. de C.V.	  	Mexico

  

 SCHEDULE 2.1 

			
	Servicios Ejecutivos a PriceSmart Mexico S.A. de C.V.	  	Mexico
		
	Servicios a PriceSmart Mexico S.A. De C.V.	  	Mexico
		
	Importadora y Exportadora PriceSmart Mexico S.A. de C.V.	  	Mexico
		
	PSMT Nicaragua (BVI), Inc.	  	British Virgin Islands
		
	PSMT Nicaragua, S. A.	  	Nicaragua
		
	Inmobiliaria PSMT Nicaragua S. A.	  	Nicaragua
		
	PSMT Hong Kong Ltd.	  	Hong Kong
		
	PriceSmart Ecuador, (BVI) S.A.	  	British Virgin Islands

  

 SCHEDULE 2.1Common Stock Purchase Warrant Dated 01/26/2005 Issued by Company to IFC

  
 Exhibit 10.2

  
 NO. W-IFC-1 
  
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE
SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. 
  
 PRICESMART, INC. 
  
 Common Stock Purchase
Warrant 
  

			
	 January 26, 2005
	  	400,000 Shares

  
 FOR VALUE RECEIVED,
PriceSmart, Inc., a Delaware corporation (the “Company”), with its principal office at 9740 Scranton Road, San Diego, California 92121-1745, hereby certifies that the International Finance Corporation (the
“Investor”), or its registered assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company up to 400,000 fully paid and nonassessable shares of Common Stock, par value
$.0001 per share, of the Company at a purchase price of $7.00 per share (subject to adjustment as hereinafter provided, the “Exercise Price”). This Warrant is exercisable at any time and from time to time after the date hereof and
before November 30, 2005 (the “Expiration Date”); provided, however, that if this Warrant has not been exercised with respect to at least 200,000 of such shares of Common Stock, this Warrant will be automatically
exercised with respect to 200,000 of such shares of Common Stock upon delivery to the Investor of proper agreements and instruments, duly executed and in full force and effect, evidencing the (i) conversion of the Bridge Loan as contemplated in
Section 2(b) of the Letter Agreement among the Company, The Price Group, LLC, a California limited liability company (the “Price Group”), PSMT Caribe, Inc., a British Virgin Islands corporation and wholly owned subsidiary of the
Company (“PSMT Caribe”), PSMT Trinidad/Tobago Limited, a company organized and existing under the laws of the Republic of Trinidad and Tobago and subsidiary of the Company (“PSMT Trinidad”), PSMT Philippines, Inc. a
Filipino corporation and subsidiary of the Company, and the Investor (the “Letter Agreement”), (ii) conversion of the Price Group’s other loans as contemplated in Section 2(c) of the Letter Agreement, (iii) conversion of the
preferred shares as contemplated in Section 2(d) of the Letter Agreement, and (iv) commencement of the exercise period of the rights offering as contemplated in Section 2(e) of the Letter Agreement. This Warrant is issued pursuant to, and is subject
to the terms and conditions of, that certain Warrant Purchase Agreement, dated January 26, 2005, between the Company and the Investor (as the same may be amended, supplemented or restated from time to time, the “Purchase
Agreement”). Capitalized terms used herein but not defined herein shall have the meanings ascribed to such terms in the Purchase Agreement. The term “Common Stock” shall mean the aforementioned Common Stock of the Company,
together with any other equity securities that may be issued by the Company in addition thereto or in substitution therefor as provided herein. 
  

 The number of shares of Common Stock to be received upon the exercise of this Warrant and the price to be
paid for a share of Common Stock are subject to adjustment from time to time as hereinafter set forth. The shares of Common Stock deliverable upon such exercise, as adjusted from time to time, are hereinafter sometimes referred to as
“Warrant Shares.” 
  
 Section 1. Exercise of
Warrant. 
  
 (a) Exercise Procedures.
This Warrant may be exercised in whole or in part, on any business day prior to the Expiration Date by presentation and surrender hereof to the Company at its principal office at the address set forth in the initial paragraph hereof (or at such
other address as the Company may hereafter notify the Holder in writing) with the Purchase Form appended hereto as Exhibit A duly executed by the Holder or by such Holder’s duly authorized attorney. Upon receipt by the Company of this
Warrant and such Purchase Form, together with such documentation or evidence as reasonably requested by the Company evidencing proper payment of the Exercise Price, the Holder shall be deemed to be the holder of record of the Warrant Shares,
notwithstanding that the stock transfer books of the Company shall then be closed or that certificates representing such Warrant Shares shall not then be actually delivered to the Holder. Payment of the Exercise Price shall be made first through the
reduction of the amounts outstanding under (i) that certain C Loan Agreement, dated as of January 26, 2001, among the Company, PSMT Caribe, PSMT Trinidad and the Investor (the “C Loan”), and (ii) the A Loan (as defined in that
certain Loan Agreement, dated January 26, 2001, among the Company, PSMT Caribe, PSMT Trinidad and the Investor) (the “A Loan”), on a pro rata basis among such outstanding amounts. To the extent, and only to the extent, that prior to
the expiration of this Warrant the Company has repaid the C Loan and the A Loan or for any other reason no amount remains outstanding thereunder, the Exercise Price shall be payable pursuant to clause (b) or (c) below. 
  
 (b) Cash Exercise. If paid in cash, the Exercise
Price shall be paid in lawful money of the United States of America, by cash, certified check or wire transfer, for the number of Warrant Shares specified in the Purchase Form. 
  
 (c) Net-Issuance. Subject to the limitations in clause (a) above, if the fair market value of one
share of Common Stock is greater than the Exercise Price (at the date of calculation as set forth below), in lieu of exercising this Warrant for cash, the Holder may elect to convert this Warrant (in whole or in part) into shares equal to the value
(as determined below) of this Warrant (or the portion thereof being cancelled) by surrender of this Warrant at the principal office of the Company together with the properly endorsed Purchase Form and notice of such election in which event the
Company shall issue to the Holder a number of shares of Common Stock computed using the following formula: 
  

									
	 X
	  	=	  	Y	  	x	  	(A    -    B)
	  	  	  	  	        A

  
 Where: 
  
 X         =          the number of shares of Common Stock to be issued to the Holder. 
  

 -2- 

 Y         =
         the number of shares of Common Stock purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being cancelled (at the date of such
calculation). 
  
 A         =          the fair market value of one share of Common Stock (at the date of such calculation). 
  
 B         =
         Exercise Price (as adjusted to the date of such calculation). 
  
 For purposes of the above calculation, the “fair market value” of one share of Common Stock on the date of calculation shall be
determined as follows: 
  
 (i) if traded on a
securities exchange or the Nasdaq National Market, the fair market value of the Common Stock shall be deemed to be the average of the closing or last reported sale prices of the Common Stock on such exchange or market over the five (5) trading day
period ending one business day prior to the date the Holder surrenders this Warrant at the principal office of the Company together with the properly endorsed Purchase Form (the “Determination Date”); 
  
 (ii) if otherwise traded in an over-the-counter market, the
fair market value of the Common Stock shall be deemed to be the average of the closing or last reported sale prices of the Common Stock over the five (5) trading day period ending one business day prior to the Determination Date; or 
  
 (iii) if there is no public market for the Common Stock, or
if a public market has existed for a period less than is necessary for a date mentioned under subsection (i) or (ii) above, then fair market value shall be determined by mutual agreement of the Holder and the Company, and if the Holder and the
Company are unable to so agree, at the Company’s sole expense by an investment banker of national reputation selected by the Company and reasonably acceptable to the Holder. 
  
 (d) Delivery to Holder. As soon as practicable after the exercise of this Warrant in whole or in
part, and in any event within five (5) business days thereafter, the Company at its expense will cause to be issued in the name of, and delivered to, the Holder, or as such Holder (upon payment by such Holder of any applicable transfer taxes) may
direct: 
  
 (i) a certificate or certificates for
the number of Warrant Shares to which such Holder shall be entitled, and 
  
 (ii) in case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate on the face or faces thereof for the number of Warrant Shares equal (without giving
effect to any adjustment therein) to the number of such shares called for on the face of this Warrant minus the number of such shares purchased by the Holder upon such exercise as provided in Section 1(a) above. 
  
 Section 2. Reservation of Shares. The Company hereby agrees that at
all times there shall be reserved for issuance and delivery upon exercise of this Warrant all shares of its Common Stock or other shares of capital stock of the Company from time to time issuable upon exercise of 

  

 -3- 

 
this Warrant. All such shares shall be duly authorized and, when issued upon such exercise in accordance with the terms of this Warrant, shall be validly
issued, fully paid and nonassessable, free and clear of all liens, security interests, charges and other encumbrances or restrictions on sale (other than as provided in the Company’s certificate of incorporation and any restrictions on sale set
forth herein or pursuant to applicable federal and state securities laws) and free and clear of all preemptive rights. 
  
 Section 3. Fractional Interest. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant, but
in lieu of such fractional shares the Company shall make a cash payment therefor for an amount equal to such fraction multiplied by the Exercise Price. 
  

Section 4. Transfer or Loss of Warrant. 
  
 (a) Transfer. Subject to the provisions of applicable law, upon surrender of this Warrant to the Company or at the office of its
stock transfer agent or warrant agent, with such duly executed Assignment Form in the form appended hereto as Exhibit B and funds sufficient to pay any transfer tax, the Company shall, without charge, execute and deliver a new Warrant or
Warrants in the name of the assignee or assignees named in such instrument of assignment (any such assignee will then be a “Holder” for purposes of this Warrant) and, if the Holder’s entire interest is not being assigned, in
the name of the Holder, and this Warrant shall promptly be cancelled. 
  
 (b) Warrant Register. The Company will maintain a register containing the names and addresses of the Holders of this Warrant. Until any transfer of this Warrant is made in the warrant register, the Company may
treat the Holder of this Warrant as the absolute owner hereof for all purposes; provided, however, that if this Warrant is properly assigned in blank, the Company may (but shall not be required to) treat the bearer hereof as the
absolute owner hereof for all purposes, notwithstanding any notice to the contrary. Any Holder may change such Holder’s address as shown on the warrant register by written notice to the Company requesting such change. 
  
 (c) Loss. Upon receipt of evidence satisfactory to
the Company of the loss, theft, destruction or mutilation of this Warrant, and (in the case of loss, theft or destruction) of indemnification satisfactory to the Company, and upon surrender and cancellation of this Warrant, if mutilated, the Company
shall execute and deliver a new Warrant of like tenor and date. 
  
 Section 5. Compliance with Act; Disposition of Warrant or Shares. 
  
 (a) Compliance with Act. The Holder, by acceptance hereof, agrees that this Warrant, and the Warrant Shares to be issued upon
exercise hereof are being acquired for investment and that such holder will not offer, sell or otherwise dispose of this Warrant, or any Warrant Shares except under circumstances which will not result in a violation of the Act or any applicable
state securities laws. This Warrant and all Warrant Shares issued upon exercise of this Warrant (unless registered under the Act and any applicable state securities laws) shall be stamped or imprinted with a legend in substantially the following
form: 
  
 “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAWS. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED
UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.” 
  

 -4- 

 Said legend shall be removed by the Company, upon the request of a Holder, at such time as the restrictions on the
transfer of the applicable security shall have terminated. In addition, in connection with the issuance of this Warrant, the holder specifically represents to the Company by acceptance of this Warrant as follows: 
  
 (i) The Holder is aware of the Company’s business
affairs and financial condition, and has acquired information about the Company sufficient to reach an informed and knowledgeable decision to acquire this Warrant. The Holder is acquiring this Warrant for its own account for investment purposes only
and not with a view to, or for the resale in connection with, any “distribution” thereof in violation of the Act. 
  
 (ii) The Holder understands that this Warrant has not been registered under the Act in reliance upon a specific exemption therefrom, which
exemption depends upon, among other things, the bona fide nature of the Holder’s investment intent as expressed herein. 
  
 (iii) The Holder further understands that this Warrant must be held indefinitely unless subsequently registered under the Act and
qualified under any applicable state securities laws, or unless exemptions from registration and qualification are otherwise available. The holder is aware of the provisions of Rule 144 promulgated under the Act. 
  
 (b) Application to Transfers. Each certificate
representing this Warrant or the Warrant Shares transferred by Holder (except a transfer pursuant to Rule 144 or 144A) shall bear a legend as to the applicable restrictions on transferability in order to ensure compliance with such laws, unless the
holder provides an opinion of counsel, reasonably acceptable to the Company, that such legend is not required in order to ensure compliance with such laws. The Company may issue stop transfer instructions to its transfer agent in connection with
such restrictions. 
  
 Section 6. Rights of Holder.
The Holder shall not, by virtue hereof, be entitled to any rights of a stockholder in the Company, either at law or equity, and the rights of the Holder are limited to those expressed in this Warrant. Nothing contained in this Warrant shall be
construed as conferring upon the Holder hereof the right to vote or to consent or to receive notice as a stockholder of the Company on any matters or with respect to any rights whatsoever as a stockholder of the Company. No dividends or interest
shall be payable or accrued in respect of this Warrant or the interest represented hereby or the Warrant Shares purchasable hereunder until, and only to the extent that, this Warrant shall have been exercised in accordance with its terms.

  

 -5- 

 Section 7. Adjustment of Exercise Price and Number of Shares. The number and kind of
securities purchasable upon the exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time upon the beginning of certain events, as follows, provided, however, that there shall be no such
adjustment or adjustments made upon the beginning or occurrence of any of the transactions contemplated by the Company’s Definitive Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission on October 6, 2004 (the
“Proxy Statement”):  
  
 (a)
Adjustment for Change in Capital Stock. If at any time after the date hereof the Company: 
  
 (i) pays a dividend in Common Stock or makes a distribution on its Common Stock in shares of its Common Stock; 
  
 (ii) subdivides its outstanding shares of Common Stock into
a greater number of shares; 
  
 (iii) combines
its outstanding shares of Common Stock into a smaller number of shares; 
  
 (iv) makes a distribution on its Common Stock in shares of its capital stock other than Common Stock; or 
  
 (v) issues by reclassification of its Common Stock any shares of its capital stock; 
  
 then the Exercise Price and the number of shares of Common Stock issuable upon exercise of
the Warrant in effect immediately prior to such action shall be adjusted so that the Holder may receive upon exercise of this Warrant and payment of the same aggregate consideration the number of shares of capital stock of the Company which the
Holder would have owned immediately following such action if the Holder had exercised this Warrant immediately prior to such action. 
  
 The adjustment shall become effective immediately after the record date in the case of a dividend or distribution and immediately after the effective date
in the case of a subdivision, combination or reclassification. 
  
 In no event shall the holder of this Warrant be entitled to receive rights pursuant to the Rights Offering (as defined in the Proxy Statement) on any shares of Common Stock issued upon exercise of the Warrant if the Warrant is exercised
after the distribution of the rights pursuant to the Rights Offering. 
  
 (b) Adjustment for Common Stock Issuance. If the Company issues shares of Common Stock for a consideration per share less than the current market price per share on the date the Company fixes the offering price
of such additional shares, the Exercise Price shall be adjusted in accordance with the formula: 
  

													
	 	  	 	  	 	  	 	  	                P
	 E’
	  	=	  	E	  	x	  	O     +     M
	 	  	 	  	 	  	 	  	        A

  

 -6- 

 where: 
  

			
	 E’ =
	  	 the adjusted Exercise Price.

		
	 E =
	  	 the then current Exercise Price.

		
	 O =
	  	 the number of shares outstanding immediately prior to the issuance of such additional shares.

		
	 P =
	  	 the aggregate consideration received for the issuance of such additional shares.

		
	 M =
	  	 the current market price per share on the date of issuance of such additional shares.

		
	 A =
	  	 the number of shares outstanding immediately after the issuance of such additional shares.

  
 The
adjustment shall be made successively whenever any such issuance is made, and shall become effective immediately after such issuance. 
  
 This subsection (b) does not apply to: 
  
 (1) the exercise of warrants, or the conversion or exchange of other securities convertible or exchangeable for Common Stock, 
  
 (2) Common Stock issued to the Company’s employees under bona fide
employee benefit plans adopted by the Board of Directors of the Company and approved by the holders of Common Stock when required by law, if such Common Stock would otherwise be covered by this subsection (b), 
  
 (3) Common Stock issued or issuable upon the exercise of rights or warrants
issued to the holders of Common Stock, or 
  
 (4) Common Stock
issued in a bona fide public offering pursuant to a firm commitment underwriting. 
  
 (c) Adjustment for Convertible Securities Issuance. If the Company issues any securities convertible into or exchangeable for
Common Stock for a consideration per share of Common Stock initially deliverable upon conversion or exchange of such securities less than the current market price per share on the date of issuance of such securities, the Exercise Price shall be
adjusted in accordance with this formula: 
  

											
	 	  	 	  	 	  	 	  	               P
	E’	  	=	  	E	  	x	  	O    +     M
	 	  	 	  	 	  	 	  	O    +     D

  

 -7- 

 where: 
  

			
	 E’ =
	  	the adjusted Exercise Price.
		
	 E =
	  	the then current Exercise Price.
		
	 O =
	  	the number of shares outstanding immediately prior to the issuance of such securities.
		
	 P =
	  	the aggregate consideration received for the issuance of such securities.
		
	 M =
	  	the current market price per share on the date of issuance of such securities.
		
	 D =
	  	the maximum number of shares deliverable upon conversion or in exchange for such securities at the initial conversion or exchange rate.

  
 The
adjustment shall be made successively whenever any such issuance is made, and shall become effective immediately after such issuance. 
  
 If all of the Common Stock deliverable upon conversion or exchange of such securities have not been issued when such securities are no
longer outstanding, then the Exercise Price shall promptly be readjusted to the Exercise Price which would then be in effect had the adjustment upon the issuance of such securities been made on the basis of the actual number of shares of Common
Stock issued upon conversion or exchange of such securities. 
  
 This subsection (c) does not apply to convertible securities issued in a bona fide public offering pursuant to a firm commitment underwriting. 
  
 (d) Current Market Price. In subsections (b) and (c) of this Section 7 the current market price per
share of Common Stock on any date is the average of the Quoted Prices of the Common Stock for 20 consecutive trading days ending on the trading day immediately prior to the date in question. The “Quoted Price” of the Common Stock is the
last reported sales price of the Common Stock as reported on the Nasdaq National Market System, or if the Common Stock is listed on a securities exchange, the last reported sales price of the Common Stock on such exchange which shall be for
consolidated trading if applicable to such exchange, or if neither so reported or listed, the last reported bid price of the Common Stock. In the absence of one or more such quotations, the Board of Directors of the Company shall determine the
current market price on the basis of such quotations as it in good faith considers appropriate. 
  
 (e) Consideration Received. For purposes of any computation respecting consideration received pursuant to subsections (b) and (c)
of this Section 7, the following shall apply: 
  
 (1) in the case
of the issuance of shares of Common Stock for cash, the consideration shall be the amount of such cash, provided that in no case shall any deduction be made for any commissions, discounts or other expenses incurred by the Company for any
underwriting of the issue or otherwise in connection therewith; 
  

 -8- 

 (2) in the case of the issuance of shares of Common Stock for a consideration in whole or in part other
than cash, the consideration other than cash shall be deemed to be the fair market value thereof as determined in good faith by the Board of Directors of the Company (irrespective of the accounting treatment thereof), whose determination shall be
conclusive, and described in a Board resolution; 
  
 (3) in the
case of the issuance of securities convertible into or exchangeable for shares, the aggregate consideration received therefor shall be deemed to be the consideration received by the Company for the issuance of such securities plus the additional
minimum consideration, if any, to be received by the Company upon the conversion or exchange thereof (the consideration in each case to be determined in the same manner as provided in clauses (1) and (2) of this subsection). 
  
 (f) When De Minimis Adjustment May Be Deferred. No
adjustment in the Exercise Price need be made unless the adjustment would require an increase or decrease of at least 1% in the Exercise Price. Any adjustments that are not made shall be carried forward and taken into account in any subsequent
adjustment. 
  
 All calculations under this
Section shall be made to the nearest cent or to the nearest 1/100th of a share, as the case may be. 
  
 (g) Adjustment in Number of Shares. Upon each adjustment of the Exercise Price pursuant to this Section 7, each Warrant outstanding
prior to the making of the adjustment in the Exercise Price shall thereafter evidence the right to receive upon payment of the adjusted Exercise Price that number of shares of Common Stock (calculated to the nearest hundredth) obtained from the
following formula: 
  

									
	 N’
	  	=	  	N	  	x	  	E
	 	  	 	  	 	  	 	  	E’

  
 where: 
  
 N’         =          the adjusted number of Warrant Shares issuable upon exercise of a Warrant by payment of the adjusted Exercise Price. 
  
 N        
=         the number or Warrant Shares previously issuable upon exercise of a Warrant by payment of the Exercise Price prior to adjustment. 
  
 E’         =         
the adjusted Exercise Price. 
  
 E         =          the Exercise Price prior to adjustment. 
  
 (h) Deferral of Issuance or Payment. In any case in which an event covered by this Section 7 shall require that an adjustment in
the Exercise Price be made effective as of a record 

  

 -9- 

 
date, the Company may elect to defer until the occurrence of such event (i) issuing to the Holder, if this Warrant is exercised after such record date, the
shares of Common Stock and other capital stock of the Company, if any, issuable upon such exercise over and above the shares of Common Stock or other capital stock of the Company, if any, issuable upon such exercise on the basis of the Exercise
Price in effect prior to such adjustment, and (ii) paying to the Holder by check any amount in lieu of the issuance of fractional shares pursuant to Section 3. 
  

(i) When No Adjustment Required. No adjustment shall be required for a change in the par value of the Common Stock. No
adjustments shall be made under any Section herein in connection with the issuance of Warrant Shares after exercise of this Warrant. 
  
 (j) Notice of Certain Actions. In the event that: 
  
 (i) the Company shall authorize the issuance to all holders of its Common Stock of rights, warrants, options
or convertible securities to subscribe for or purchase shares of its Common Stock or of any other subscription rights, warrants, options or convertible securities with the exception of the rights to be issued pursuant to the Rights Offering; or

  
 (ii) the Company shall authorize the
distribution to all holders of its Common Stock of evidences of its indebtedness or assets (other than dividends paid in or distributions of the Company’s capital stock for which the Exercise Price shall have been adjusted pursuant to
subsection (a) of this Section 7 or cash dividends or cash distributions payable out of consolidated current or retained earnings as shown on the books of the Company and paid in the ordinary course of business); or 
  
 (iii) the Company shall authorize any capital reorganization
or reclassification of the Common Stock (other than a subdivision or combination of the outstanding Common Stock and other than a change in par value of the Common Stock) or of any consolidation or merger to which the Company is a party and for
which approval of any stockholders of the Company is required (other than a consolidation or merger in which the Company is the continuing corporation and that does not result in any reclassification or change of the Common Stock outstanding), or of
the conveyance or transfer of the properties and assets of the Company as an entirety or substantially as an entirety; or 
  
 (iv) the Company is the subject of a voluntary or involuntary dissolution, liquidation or winding-up procedure; or 
  
 (v) the Company proposes to take any action (other than
actions of the character described in Section 7(a)) which would require an adjustment of the Exercise Price pursuant to Section 7; 
  
 then the Company shall cause to be sent by facsimile (with electronic confirmation of transmission), overnight courier or certified or registered mail, postage prepaid
and return receipt requested, addressed to the registered Holder at the facsimile number or address of such Holder as shown on the books of the Company, at least ten (10) days prior to the applicable record or effective date hereinafter specified, a
notice stating (A) the date as of which the holders of Common Stock of record to be entitled to receive any such rights, warrants or distributions are to be determined, or (B) the date on which any such consolidation, merger, conveyance, transfer,
dissolution, liquidation or 

  

 -10- 

 
winding-up is expected to become effective, and the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange
their shares of Common Stock for securities or other property, if any, deliverable upon such reorganization, reclassification, consolidation, merger, conveyance, transfer, dissolution, liquidation or winding-up. 
  
 (k) Company Determination Final. Any determination
that the Company or the Board of Directors of the Company must make pursuant to subsection (a), (b), (c), (d) or (e) of this Section 7 shall be based solely upon information known by the Company or the Board of Directors of the Company, as the case
may be, at the time of such determination and shall be conclusive absent manifest error. 
  
 Section 8. Notice of Adjustment. Upon any adjustment of the Exercise Price or any increase or decrease in the number of shares of Common Stock purchasable upon the exercise of this Warrant, the Company
shall give written notice thereof, by facsimile (with electronic confirmation of transmission), overnight courier or certified or registered mail, postage prepaid and return receipt requested, addressed to the registered Holder at the facsimile
number or address of such Holder as shown on the books of the Company. The notice shall be signed by the Company’s chief financial officer and shall state the Exercise Price resulting from such adjustment and the increase or decrease, if any,
in the number of shares purchasable at such price upon the exercise of this Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. 
  
 Section 9. Reclassification, Reorganization, Consolidation or
Merger. In the event of any reclassification, capital reorganization or other change of outstanding shares of Common Stock of the Company (other than a subdivision or combination of the outstanding Common Stock or a change in the par
value of the Common Stock) or in the event of any consolidation or merger of the Company with or into another corporation (other than a merger in which the Company is the continuing corporation and that does not result in any reclassification,
capital reorganization or other change of outstanding shares of Common Stock of the class issuable upon exercise of this Warrant) or in the event of any sale, lease, transfer or conveyance to another corporation of the property and assets of the
Company as an entirety or substantially as an entirety, the Company shall, as a condition precedent to such transaction, cause effective provisions to be made so that the Holder shall have the right thereafter, by exercising this Warrant, (in lieu
of the shares of the Common Stock of the Company immediately theretofore purchasable and receivable upon exercise of the rights represented hereby) to purchase the kind and amount of shares of stock and other securities and property (including cash)
receivable upon such reclassification, capital reorganization and other change, consolidation, merger, sale or conveyance by a holder of the number of shares of Common Stock that might have been received upon exercise of this Warrant immediately
prior to such reclassification, capital reorganization, change, consolidation, merger, sale or conveyance; provided, however, that in the event (a) the value of the stock, securities or other assets or property (determined in good
faith by the Board of Directors of the Company) issuable or payable with respect to one share of the Common Stock of the Company immediately theretofore purchasable and receivable upon the exercise of the rights represented hereby is in excess of
the Exercise Price hereof effective at the time of the merger (after giving effect to any adjustment in such Exercise Price required to be made under the terms of this Warrant), and (b) the securities received in such reorganization, if any, are
publicly traded, then this Warrant shall expire unless exercised prior to the reorganization. Any such provision shall include provisions for adjustments in respect of such 

  

 -11- 

 
shares of stock and other securities and property that shall be as nearly equivalent as may be practicable to the adjustments provided for in this Warrant.
The foregoing provisions of this Section 9 shall similarly apply to successive reclassifications, capital reorganizations and changes of shares of Common Stock and to successive consolidations, mergers, sales or conveyances. 
  
 Section 10. Saturdays, Sundays and Holidays. If the last or
appointed day for the taking of any action or the expiration of any right required or granted herein shall be a Saturday or a Sunday or shall be a legal holiday in the State of California, then such action may be taken or such right may be exercised
on the next succeeding day not a Saturday, Sunday or legal holiday in the State of California. 
  
 Section 11. Issue Tax. The issuance of certificates for Common Stock upon the exercise of the Warrant shall be made without charge to the holder of the Warrant for any issue tax (other than any
applicable income taxes) in respect thereof; provided, however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery of any certificates in a name
other than that of the then Holder of the Warrant being exercised. 
  
 Section 12. Modification and Waiver. Any term of this Warrant may be amended and the observance of any term of this Warrant may be waived (either generally or in a particular instance and either
retroactively or prospectively) only with the written consent of the Company and the Holder. 
  
 Section 13. Notices. Unless otherwise specified herein, any notice, request, demand, claim or other communication hereunder shall be deemed duly given if (and then two (2) business days after) it is sent
by overnight courier or by registered or certified mail, return receipt requested, postage prepaid and addressed to the intended recipient. All communications shall be sent to the Holder at its address as shown on the books of the Company, or to the
Company at the address indicated therefor in the first paragraph of this Warrant or subsequently modified by written notice to the Holder. 
  
 Section 14. Descriptive Headings. The description headings of the several sections and paragraphs of this Warrant are inserted for convenience only
and do not constitute a part of this Warrant. 
  
 Section 15.
Applicable Law and Jurisdiction. 
  
 (a)
This Warrant is governed by, and shall be construed in accordance with, the laws of the State of New York, United States of America. 
  
 (b) The Company irrevocably agrees that any legal action, suit or proceeding arising out of or relating to this Warrant may be brought by
the Holder in the courts of the United States of America located in the Southern District of New York. By the execution of this Warrant, the Company irrevocably submits to the non-exclusive jurisdiction of any such court in any such action, suit or
proceeding. Final judgment against the Company in any such action, suit or proceeding shall be conclusive and may be enforced in any other jurisdiction, by suit on the judgment, a certified or exemplified copy of which shall be conclusive evidence
of the judgment, or in any other manner provided by law. 
  

 -12- 

 (c) Nothing in this Warrant shall affect the right of the Holder to commence legal
proceedings or otherwise sue the Company in any other appropriate jurisdiction, or concurrently in more than one jurisdiction, or to serve process, pleadings and other legal papers upon the Company in any manner authorized by the laws of any such
jurisdiction. 
  
 (d) The Company also
irrevocably consents to the service of summons, complaint or other legal process in any action, suit or proceeding being made out of courts situated in New York, New York by mailing copies of the papers by registered United States air mail, postage
prepaid, to the Company at its address indicated therefor in the first paragraph of this Warrant or subsequently modified by written notice to the Holder. 
  
 (e) The Company hereby irrevocably consents that service in the manner provided in this Section 15 in any action, suit or proceeding will
be deemed personal service, will be accepted by the Company as such and will be valid and binding upon the Company for all purposes of any such action, suit or proceeding. 
  
 (f) The Company irrevocably waives to the fullest extent permitted by applicable law: 
  

	 	(i)	any objection which it may have now or in the future to the laying of the venue of any action, suit or proceeding in any court referred to in this Section; 

 

	 	(ii)	any claim that any such action, suit or proceeding has been brought in an inconvenient forum; and 

  

	 	(iii)	any and all rights to demand a trial by jury in any such action, suit or proceeding brought against the Company by the Holder. 

  
 (g) To the extent the Company may be entitled in any
jurisdiction to claim for itself or its assets immunity in respect of its obligations under this Warrant from any suit, execution, attachment (whether provisional or final, in aid of execution, before judgment or otherwise) or other legal process or
to the extent that in any jurisdiction that immunity (whether or not claimed) may be attributed to it or its assets, the Company irrevocably agrees not to claim and irrevocably waives such immunity to the fullest extent permitted now or in the
future by the laws of such jurisdiction. 
  
 (h)
The Company hereby acknowledges that the Investor shall be entitled under applicable law, including the provisions of the International Organizations Immunities Act, to immunity from a trial by jury in any action, suit or proceeding arising out of
or relating to this Warrant or the transactions contemplated hereby brought against the Investor in any court of the United States of America. The Company hereby waives any and all rights to demand a trial by jury in any action, suit or proceeding
arising out of or relating to this Warrant to which the Company is a party or the transactions contemplated by this Warrant, brought against the Holder in any forum in which the Holder is not entitled to immunity from a trial by jury. 
  
 (i) To the extent that the Company may, in any suit, action
or proceeding brought in any of the courts referred to in Section 15(b) or elsewhere arising out of or in 

  

 -13- 

 
connection with this Warrant, be entitled to the benefit of any provision of law requiring the Holder in such suit, action or proceeding to post security for
such costs of the Company, or to post a bond or to take similar action, the Company hereby irrevocably waives such benefit, in each case to the fullest extent now or in the future permitted under the laws of the jurisdiction in which such court is
located. 
  
 Section 16. Attorneys’ Fees. If any
action at law or in equity is necessary to enforce or interpret the terms of this Warrant, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such
party may be entitled. 
  
 Section 17.
Severability. If one or more provisions of this Warrant are held to be unenforceable under applicable law, such provision(s) shall be excluded from this Warrant and the balance of the Warrant shall be interpreted as if such
provision(s) were so excluded and shall be enforceable in accordance with its terms. 
  
 [Signature Page Follows] 
  

 -14- 

 IN WITNESS WHEREOF, the Company has duly caused this Warrant to be signed by its duly authorized
officer as of the date first written above. 
  

			
	 PRICESMART, INC.,
 a Delaware corporation

		
	By:	 	/s/ JOHN M. HEFFNER        
	 Name:
	 	John M. Heffner
	 Title:
	 	Chief Financial Officer

  

			
	ATTEST:
		
	By:	 	/s/ MICHAEL L. MCCLEARY        
	 Name: 
	 	Michael L. McCleary
	 Title:
	 	Senior Vice President and Corporate Controller

  

 -15- 

  
 EXHIBIT A

  
 PURCHASE FORM 
  
 Dated
                         
  
 PriceSmart, Inc. 
 9740 Scranton Road 
 San Diego, California 92121-1745 
 Attn: Chief Financial Officer

  
 Ladies and Gentlemen: 
  

			
	 ̈	  	The undersigned hereby irrevocably elects to exercise the attached Common Stock Purchase Warrant (the “Warrant”) to purchase
                     shares of Common Stock of PriceSmart, Inc. and hereby makes payment of
$            , payable through a corresponding reduction of the amount outstanding on the C Loan and the A Loan (as each are defined in the Warrant) on a pro rata basis, in payment
of the exercise price thereof, together with all applicable transfer taxes, if any, in accordance with Section 1(a) of the Warrant.
		
	 ̈	  	The undersigned hereby irrevocably elects to exercise the attached Warrant to purchase
                     shares of Common Stock of PriceSmart, Inc. and hereby makes payment of
$             in payment of the exercise price thereof, together with all applicable transfer taxes, if any, in accordance with Section 1(a) and (b) of the Warrant.
		
	 ̈	  	The undersigned hereby irrevocably elects to exchange the within Warrant for
                     shares of Common Stock of PriceSmart, Inc. pursuant to the “net-issuance” provision in Section 1(c) and in
accordance with Section 1(a) of the Warrant.

  

 A-1 

 Please issue a certificate or certificates representing said shares of Common Stock of PriceSmart, Inc.
in the name of the undersigned or in such other name as is specified below: 
  

			
	

	(Name)
	
	

	 (Address)

	
	

	
	Holder:
	
	

		
	 By:
	 	 
		
	 Name:
	 	 
		
	 Title:
	 	 

  

 A-2 

  
 EXHIBIT B

  
 ASSIGNMENT FORM 
  
 Dated
                     
  
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto 
  
                                       
                                        
                                        
                                        
                                        
              , 
 (please type or print in block letters) 

 

 (insert address)

  
 its right to purchase up to
                     shares of Common Stock of PriceSmart, Inc. represented by this Common Stock Purchase Warrant and does hereby irrevocably
constitute and appoint                      attorney to transfer said right on the books of PriceSmart, Inc., with full power of substitution
in the premises. 
  

			
	

		
	 By:
	 	 
		
	 Name:
	 	 
		
	 Title:
	 	 

  

 B-1

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