Document:

Stockholder Voting Agreement

 Exhibit 10.2 
  
 STOCKHOLDER VOTING AGREEMENT 
  
 BY AND AMONG 
  
 PRICESMART, INC. 
  
 and 
  
 THE
STOCKHOLDERS LISTED 
 ON SCHEDULE A HERETO 
  
 Dated as of October 4, 2004 

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

  
 WHEREAS, each of the Stockholders are, as of the date hereof,
the beneficial owners of that number of shares of common stock, par value $0.0001 per share (the “Common Stock”), of the Company, set forth opposite such Stockholder’s name on Schedule A hereto. 
  
 WHEREAS, the Stockholders desire that the Company enter into the Transaction
(as defined in Annex A attached hereto); 
  
 NOW, THEREFORE, in
consideration of the mutual covenants, conditions and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  
 1. Representations and Warranties. Each of the Stockholders hereby
represents and warrants to the Company, severally and not jointly, as follows: 
  
 (a) Such Stockholder is the beneficial owner of the shares of Common Stock (as may be adjusted from time to time pursuant to Section 5 hereof, the “Shares”) set forth opposite such Stockholder’s
name on Schedule A to this Agreement and such Shares represent all of the Shares beneficially owned (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) by such
Stockholder. For purposes of this Agreement, the term “Shares” shall include any shares of Common Stock issuable to such Stockholder upon exercise or conversion of any existing right, contract, option, or warrant to purchase, or securities
convertible into or exchangeable for, Common Stock (“Stockholder Rights”) that are currently exercisable or convertible or become exercisable or convertible and any other shares of Common Stock such Stockholder may acquire or
beneficially own during the term of this Agreement. Schedule A lists all Stockholder Rights held by such Stockholder as of the date of this Agreement. 
  
 (b) Such Stockholder has all requisite power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby.
This Agreement has been validly executed and delivered by such Stockholder and, assuming that this Agreement constitutes the legal, valid and binding obligation of the other parties hereto, constitutes the legal, valid and binding obligation of such
Stockholder, enforceable against such Stockholder in accordance with its terms (except insofar as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights
generally, or by principles governing the availability of equitable remedies). 
  
 (c) The execution and delivery of this Agreement by such Stockholder does not, and the performance of this Agreement by such Stockholder will not, (i) conflict with the certificate of incorporation or bylaws or
similar organizational documents of such Stockholder as 
  

 - 2 - 

 presently in effect (in the case of a Stockholder that is a legal entity), (ii) conflict with or violate any judgment,
order, decree, statute, law, ordinance, rule or regulation applicable to such Stockholder or by which it is bound or affected, (iii)(A) result in any breach of or constitute a default (or an event that with notice or lapse of time or both would
become a default) under, or (B) result in the creation of any pledge, claim, lien, charge, encumbrance or security interest of any kind or nature whatsoever upon any of the properties or assets of the Stockholder under, any agreement, contract,
indenture, note or instrument to which such Stockholder is a party or by which it is bound or affected, except for such breaches, defaults or other occurrences that would not prevent or materially delay the performance by such Stockholder of any of
such Stockholder’s obligations under this Agreement, or (iv) except for applicable requirements, if any, of the Exchange Act, the Securities Act of 1933, as amended (the “Securities Act”), or the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended (the “HSR Act”), require any filing by such Stockholder with, or any permit, authorization, consent or approval of, any governmental or regulatory authority, except where the failure to make such
filing or obtain such permit, authorization, consent or approval would not prevent or materially delay the performance by any Stockholder of any of such Stockholder’s obligations under this Agreement. 
  
 (d) The Shares and the certificates representing such Shares are now, and at
all times during the term hereof will be, held by such Stockholder, or by a nominee or custodian for the benefit of such Stockholder, free and clear of all liens, claims, security interests, proxies, voting trusts or agreements, understandings or
arrangements or any other encumbrances whatsoever, except for any such encumbrances or proxies arising hereunder. Such Stockholder does not beneficially own any shares of Common Stock other than such Stockholder’s Shares. 
  
 (e) The Stockholder understands and acknowledges that the Company is
proposing the Transaction in reliance upon the Stockholders’ execution and delivery of this Agreement. 
  
 2. Voting Agreements. 
  
 (a) Each Stockholder agrees with, and covenants to, the Company that, at any meeting of stockholders of the Company called to vote upon the Transaction or
at any adjournment thereof or in any other circumstances upon which a vote with respect to the Transaction is sought (the “Stockholders’ Meeting”), such Stockholder shall appear, or cause the holder of record on any applicable
record date (the “Record Holder”) to appear, for the purpose of obtaining a quorum at the Stockholders’ Meeting, and vote (or cause the Record Holder to vote) such Stockholder’s Shares in favor of the Transaction and each
of the other transactions contemplated by the Transaction. 
  
 (b)
At any Stockholders’ Meeting such Stockholder shall vote (or cause to be voted) such Stockholder’s Shares against any amendment of Company’s Amended and Restated Certificate of Incorporation or Amended and Restated Bylaws or other
proposal or transaction involving the Company or any of its subsidiaries, which amendment or other proposal or transaction would in any manner impede, frustrate, prevent or nullify the Transaction or any of the other transactions contemplated by the
Transaction (collectively, “Competing Transactions”). 
  

 - 3 - 

 (c) Such Stockholder agrees to permit the Company to publish and disclose in any and all future
Preliminary or Definitive Proxy Statements on Form 14A soliciting a shareholder vote on the Transaction and all related filings under the securities laws such Stockholder’s identity and ownership of Shares and the nature of its commitments,
arrangements and understandings under this Agreement and any other information required by applicable law. 
  
 3. Covenants. Each of the Stockholders, severally and not jointly, agrees with, and covenants to, the Company that such Stockholder shall not,
except as contemplated by the terms of this Agreement, sell, transfer, pledge, assign or otherwise dispose of, or enter into any contract, option or other arrangement (including any profit-sharing arrangement) or understanding with respect to the
sale, transfer, pledge, assignment or other disposition of, the Shares (including any options or warrants to purchase Common Stock) to any person (any such action, a “Transfer”). For purposes of clarification, the term
“Transfer” shall include, without limitation, any short sale (including any “short sale against the box”), pledge, transfer, and the establishment of any open “put equivalent position” within the meaning of Rule
16a-1(h) under the Exchange Act. Notwithstanding the foregoing, (i) Transfers of Shares as bona fide gifts, (ii) distributions of Shares to partners, members, stockholders, subsidiaries, affiliates, affiliated partnerships or other affiliated
entities of the undersigned, (iii) Transfers of Shares by will or intestacy, and (iv) Transfers of Shares to a trust, the beneficiaries of which are the undersigned, shall not be prohibited by this Agreement; provided that in the case of any such
transfer or distribution pursuant to clause (i), (ii), (iii) or (iv), each donee or distributee shall execute and deliver to the Company a valid and binding counterpart to this Agreement and agree to be bound by all the obligations of the
Stockholders hereunder. 
  
 4. Grant of Irrevocable Proxy;
Appointment of Proxy. 
  
 (a) Each Stockholder hereby
irrevocably grants to, and appoints, the Company as such Stockholder’s proxy and attorney-in-fact (with full power of substitution), for and in the name, place and stead of such Stockholder, to vote such Stockholder’s Shares at any
Stockholders’ Meeting (i) in favor of the Transaction, and each of the other transactions contemplated by the Transaction, and (ii) against any Competing Transaction. 
  
 (b) Each Stockholder represents that any proxies heretofore given in respect of such Stockholder’s Shares are not
irrevocable, and that any such proxies are hereby revoked. 
  
 (c)
Each Stockholder hereby affirms that the irrevocable proxy set forth in this Section 4 is given in connection with the approval and execution of the Transaction, and that such irrevocable proxy is given to secure the performance of the duties of
such Stockholder under this Agreement. Such Stockholder hereby further affirms that the irrevocable proxy is coupled with an interest and may under no circumstances be revoked, subject to Section 7 herein. Such Stockholder hereby ratifies and
confirms all that such irrevocable proxy may lawfully do or cause to be done by virtue hereof. Such irrevocable proxy is executed and intended to be irrevocable in accordance with the provisions of Section 212(e) of the Delaware General Corporation
Law. Such irrevocably proxy shall be valid until the termination of this Agreement pursuant to Section 7 herein. 
  

 - 4 - 

 5. Certain Events. Each Stockholder agrees that this Agreement and the obligations hereunder shall
attach to such Stockholder’s Shares and shall be binding upon any person or entity to which legal or beneficial ownership of such Shares shall pass, whether by operation of law or otherwise, including without limitation such Stockholder’s
successors or assigns. Each Stockholder agrees that, in the event of any stock split, stock dividend, merger, reorganization, recapitalization or other change in the capital structure of the Company affecting the Common Stock, or the acquisition of
additional shares of Common Stock or other voting securities of the Company by any Stockholder, the number of Shares subject to the terms of this Agreement shall be adjusted appropriately and this Agreement and the obligations hereunder shall apply
to any additional shares of Common Stock or other voting securities of the Company issued to or acquired by such Stockholder. 
  
 6. Further Assurances. Each Stockholder shall, upon request and expense of the Company, execute and deliver any additional documents and take such
further actions as may reasonably be deemed by the Company to be necessary or desirable to carry out the provisions hereof and to vest the power to vote such Stockholder’s Shares as contemplated by Section 4 in the Company. 
  
 7. Termination. This Agreement, and all rights and obligations of the
parties hereunder, shall terminate upon the first to occur of (i) the issuance of all the Common Stock under that certain Stock Purchase Agreement, dated of even date herewith, by and among the Investors (as defined therein) and the Company, or (ii)
upon rejection of the Transaction by the stockholders of the Company at any Stockholders’ Meeting. Upon such termination, no party shall have any further obligations or liabilities hereunder, provided that no such termination shall relieve any
party from liability for any breach of this Agreement prior to such termination. 
  
 8. Action in Stockholder Capacity Only. No person executing this Agreement who is or becomes during the term hereof a director or officer of the Company makes any agreement or understanding herein in his or her
capacity as such director or officer. Each Stockholder signs solely in his or her capacity as the beneficial owner of, or the trustee of a trust whose beneficiaries are the beneficial owners of, such Stockholder’s Shares and nothing herein
shall limit or affect any actions taken by a Stockholder in his or her capacity as an officer or director of the Company to the extent permitted by the Transaction. 
  

 - 5 - 

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

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

  
 (ii) if to a
Stockholder, to the address set forth under the name of such Stockholder on Schedule A hereto. 
  
 (b) The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this
Agreement. 
  
 (c) This Agreement may be executed in two or more
counterparts, all of which shall be considered one and the same agreement. 
  
 (d) This Agreement (including the documents and instruments referred to herein) constitutes the entire agreement, and supersedes all prior agreements and understandings, both written and oral, among the parties with
respect to the subject matter hereof. 
  
 (e) This Agreement shall
be governed by, and construed in accordance with, the laws of the State of Delaware, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof. 
  
 (f) Neither this Agreement nor any of the rights, interests or obligations
under this Agreement shall be assigned, in whole or in part, by operation of law or otherwise, by any of the parties without the prior written consent of the other parties. Any assignment in violation of the foregoing shall be void. 
  

 - 6 - 

 (g) Each Stockholder agrees that irreparable damage would occur and the Company would not have any
adequate remedy at law in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the Company shall be entitled to an injunction or
injunctions to prevent breaches by each Stockholder of this Agreement and to enforce specifically the terms and provisions of this Agreement, this being in addition to any other remedy to which they are entitled at law or in equity. 
  
 (h) If any term, provision, covenant or restriction herein, or the
application thereof to any circumstance, shall, to any extent, be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions herein and the application thereof
to any other circumstances, shall remain in full force and effect, shall not in any way be affected, impaired or invalidated, and shall be enforced to the fullest extent permitted by law. 
  
 (i) Nothing contained in this Agreement shall be deemed to vest in the Company any direct or indirect ownership or incidence
of ownership of or with respect to any of the Stockholders’ Shares. All rights, ownership and economic benefits of and relating to each Stockholder’s Shares shall remain and belong to such Stockholder, and the Company shall not have any
authority to manage, direct, superintend, restrict, regulate, govern, or administer any of the policies or operations of the Company or exercise any power or authority to direct any Stockholder in the voting of any of such Stockholder’s Shares,
except as otherwise provided herein, or the performance of such Stockholder’s duties or responsibilities as a stockholder of Company. 
  
 (j) No amendment, modification or waiver in respect of this Agreement shall be effective against any party unless it shall be in writing and signed by
such party. 
  
 [REMAINDER OF THIS PAGE INTENTIONALLY LEFT
BLANK] 
  

 - 7 - 

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

			
	 PRICESMART, INC.

		
	 By:
	 	 /s/ Robert M. Gans

	 Name:
	 	 Robert M. Gans

	 Title:
	 	 Executive Vice President

  
 VOTING AGREEMENT

 COUNTERPART SIGNATURE PAGE 
  

 Page 1 of 2 

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

			
	 STOCKHOLDER:

	
	 THE PRICE GROUP, LLC

		
	 By:
	 	 /s/ James Cahill

	 Name:
	 	 Jim Cahill

	 Title:
	 	 Manager

		
	 Address:
	 	 7979 Ivanhoe Avenue #520

	 	 	 La Jolla, California 92037

	 Number of Shares
 of Company Stock

	 Beneficially Owned: 165,577

	
	 SOL AND HELEN PRICE TRUST

		
	 By:
	 	 /s/ Sol Price

	 Name:
	 	 Sol Price

	 Title:
	 	 Trustee

		
	 Address:
	 	 7979 Ivanhoe Avenue, #520

	 	 	 La Jolla, California 92037

	 Number of Shares
 of Company Stock

	 Beneficially Owned: 368,594 

	
	 ROBERT AND ALLISON PRICE TRUST 1/10/75

		
	 By:
	 	 /s/ Robert E. Price

	 Name:
	 	 Robert E. Price

	 Title:
	 	 Trustee

		
	 By:
	 	 /s/ Allison Price

	 Name:
	 	 Allison Price

	 Title:
	 	 Trustee

  
 VOTING AGREEMENT

 COUNTERPART SIGNATURE PAGE 
  

 Page 2 of 2 

			
	 Address:
	 	 7979 Ivanhoe Avenue, #520

	 	 	 La Jolla, California 92037

	 Number of Shares
 of Company Stock
 Beneficially Owned: 179,948

	
	 THE PRICE FAMILY CHARITABLE FUND

		
	 By:
	 	 /s/ James Cahill

	 Name:
	 	 James Cahill

	 Title:
	 	 Executive Vice President

		
	 Address:
	 	 7979 Ivanhoe Avenue, #520

	 	 	 La Jolla, California 92037

	 Number of Shares
 of Company Stock
 Beneficially Owned: 654,382

	
	 ROBERT AND ALLISON PRICE CHARITABLE
 REMAINDER TRUST

		
	 By:
	 	 /s/ Robert E. Price

	 Name:
	 	 Robert E. Price

	 Title:
	 	 Trustee

		
	 By:
	 	 /s/ Allison Price

	 Name:
	 	 Allison Price

	 Title:
	 	 Trustee

		
	 Address:
	 	 7979 Ivanhoe Avenue, #520

	 	 	 La Jolla, California 92037

	 Number of Shares
 of Company Stock
 Beneficially Owned: 596,067

  
 VOTING AGREEMENT

 COUNTERPART SIGNATURE PAGE 
  

 Page 3 of 2 

 Annex A 
  
 The “Transaction” is composed of the following elements: 
  

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

  

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

  

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

  

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

  

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

  

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

  

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

  
 ANNEX A 
  

 SCHEDULE A 
  
 OWNERSHIP OF SHARES 
  

			
	 Name and Address of Stockholder

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

	 The Price Group, LLC
	  	165,577
		
	 Sol and Helen Price Trust
	  	368,594
		
	 Robert and Allison Price Trust 1/10/75
	  	179,948
		
	 The Price Family Charitable Fund
	  	654,382
		
	 Robert and Allison Price Charitable Remainder Trust
	  	596,067

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

  
 SCHEDULE AEmployment Agreement

 Exhibit 10.3 
  
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into as of the 3rd day of June, 2004, by and between PriceSmart, Inc., a Delaware corporation (“Employer”), and Jose Luis Laparte (“Executive”). 

 
 RECITALS 
  
 A. Employer desires to employ Executive as President of Employer. 

 
 B. Executive desires to accept such position upon the terms and subject to
the conditions herein provided. 
  
 TERMS AND CONDITIONS

  
 NOW, THEREFORE, in consideration of the foregoing premises and
mutual covenants and conditions hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 EMPLOYMENT AND DUTIES 
  
 1.1 Position and Duties. Executive shall serve as President of
Employer. Executive shall have such duties and authority commensurate with such position, as may from time to time be delegated or assigned to him by the Chief Executive Officer or the Board of Directors of Employer. Executive shall discharge his
duties in a diligent and professional manner. 
  
 1.2 Outside
Business Activities Precluded. During his employment, Executive shall devote his full energies, interest, abilities and productive time to the performance of this Agreement. Executive shall not, without the prior written consent of Employer,
perform other services of any kind or engage in any other business activity, 
  

 1 

 with or without compensation, that would interfere with the performance of his duties under this Agreement. Executive
shall not, without the prior written consent of Employer, engage in any activity adverse to Employer’s interests. 
  
 1.3 Place of Employment. Unless the parties agree otherwise in writing, during the Employment Term (as defined in Section 3.1 below) Executive
shall perform the services he is required to perform under this Agreement at Employer’s offices located in San Diego, California; provided, however, that it shall be necessary for Executive to frequently travel (approximately one week per
month) to periodically visit PriceSmart warehouses in Central America, Mexico, the Caribbean and Asia. 
  
 ARTICLE II 
  
 COMPENSATION 
  
 2.1 Salary. For
Executive’s services hereunder, Employer shall pay as base salary to Executive the amount of $360,000 during each year of the Employment Term. Said salary shall be payable in equal installments in conformity with Employer’s normal payroll
period. Executive shall receive such salary increases, if any, as Employer, in its sole discretion, shall determine. 
  
 2.2 Bonus. Executive shall be entitled to receive a bonus in the amount of $100,000 if, but only if, Employer’s actual results for
Employer’s Fiscal Year ending August 31, 2005 (“FY’05”) equal or exceed the planned results for FY’05 as reflected in Employer’s Annual Plan for FY’05 (to be established by the Employer’s Board of Directors in
or about July, 2004). In the event Employer’s actual results for FY ‘05 do not equal or exceed said planned results for FY ‘05 then Executive’s bonus (if any) shall be determined in accordance with the following schedule:

  

				
	 Actual Results

	  	Bonus

	 97% to 99.99% of Planned Results
	  	$	75,000
	 95% to 96.99% of Planned Results
	  	$	50,000
	 90% to 94.99% of Planned Results
	  	$	25,000
	 Less than 90% of Planned Results
	  	 	No Bonus

  

 2 

 The term “results” as used herein refers to Operating Income, but excluding the effect on Operating Income due
to earnings or losses relating to real estate owned or leased by Employer upon which PriceSmart warehouse clubs (and adjacent facilities) formerly operated. 
  
 2.3 Other Benefits. During the term of his employment hereunder, Executive shall be entitled to the benefits identified in Exhibit “A”
hereto; additionally, Executive shall be entitled to participate in and receive benefits under Employer’s standard company benefits practices and plans for officers of Employer, including medical insurance, long-term disability, life insurance,
profit sharing and retirement plan, and Employer’s other plans, subject to and on a basis consistent with the terms, conditions and overall administration of such practices and plans. Employer may from time to time in its sole discretion grant
such additional compensation or benefits to Executive as it deems proper and desirable. 
  
 2.4 Expenses. During the term of his employment hereunder, Executive shall be entitled to receive prompt reimbursement for all reasonable business-related expenses incurred by him, in accordance with the
policies and procedures from time to time adopted by Employer, provided that Executive properly accounts for such business expenses in accordance with Employer policy. 
  
 2.5 Deductions and Withholdings. All amounts payable or which become payable under any provision of this Agreement
shall be subject to any deductions authorized by Executive and any deductions and withholdings required by law. 
  

 3 

 ARTICLE III 
  
 TERM OF EMPLOYMENT 
  
 3.1 Term. The term of Executive’s employment hereunder shall commence on October 8, 2004 and shall continue until October 7, 2005, unless
sooner terminated or extended as hereinafter provided (the “Employment Term”). 
  
 3.2 Extension of Term. The Employment Term may be extended by written amendment to this Agreement signed by both parties. 
  

3.3 Early Termination by Executive. Executive may terminate this Agreement at any time by giving Employer written notice of his resignation
ninety (90) days in advance; provided, however, that the Board of Directors may determine upon receipt of such notice that the effective date of such resignation shall be immediate or some time prior to the expiration of the ninety-day notice
period. Executive’s employment shall terminate as of the effective date of his resignation as determined by the Board of Directors. 
  
 3.4 Termination for Cause. Prior to the expiration of the Employment Term, Executive’s employment may be terminated for Cause by Employer,
immediately upon delivery of notice thereof. For these purposes, termination for “Cause” shall mean termination because of Executive’s (a) repeated and habitual failure to perform his duties or obligations hereunder; (b) engaging in
any act that has a direct, substantial and adverse effect on Employer’s interests; (c) personal dishonesty, willful misconduct, or breach of fiduciary duty involving personal profit; (d) intentional failure to perform his stated duties; (e)
willful violation of any law, rule or regulation which materially adversely affects his ability to discharge his duties or has a direct, substantial and adverse effect on Employer’s interests; (f) any material breach of this contract by
Executive; or (g) conduct authorizing termination under Cal. Labor Code § 2924. 
  

 4 

 3.5 Termination Due to Death or Disability. Executive’s employment hereunder shall terminate
immediately upon his death. In the event that by reason of injury, illness or other physical or mental impairment Executive shall be: (a) completely unable to perform his services hereunder for more than three (3) consecutive months, or (b) unable
to perform his services hereunder for fifty percent (50%) or more of the normal working days throughout six (6) consecutive months, then Employer may terminate Executive’s employment hereunder immediately upon delivery of notice thereof.
Executive’s beneficiaries, estate, heirs, representatives, or assigns, as appropriate, shall be entitled to the proceeds, if any, due under any Employer-paid life insurance policy held by Executive, as determined by and in accordance with the
terms of any such policy, as well as any vested benefits and accrued vacation benefits. 
  
 ARTICLE IV 
  
 BENEFITS AFTER
TERMINATION OF EMPLOYMENT 
  
 4.1 Benefits Upon
Termination. Upon termination of this Agreement under Section 3.3 (Early Termination by Executive), Section 3.4 (Termination for Cause) or Section 3.5 (Termination Due to Death or Disability), all salary and benefits of Executive hereunder shall
cease immediately. Upon termination of this Agreement by Employer for any reason other than those set forth in Section 3.4 or Section 3.5, Executive shall be entitled to the continuation of Executive’s base salary for one (1) year, payable in
equal installments in conformity with Employer’s normal payroll period. If this Agreement is not terminated, then, upon expiration of the Employment Term and if neither of the following happens: 
  
 (i) Executive’s employment term thereupon is offered for renewal for an
additional year by Employer with Executive’s annual base salary being at least the same as set forth hereinabove; 
  

 5 

 (ii) Executive’s employment term thereupon is offered for renewal for an additional year by Employer
with Executive’s annual base salary less than that set forth hereinabove, and such renewal on such terms is agreed to by Executive, 
  
 then Executive shall be entitled to continuation of Executive’s base salary for one (1) year, payable in equal installments in conformity with Employer’s normal
payroll period; provided, however, that: 
  
 (i) Executive has
executed a severance agreement and general release of all claims (releasing Employer and its agents/affiliated parties of all claims and demands), in a form as provided by Employer to Executive; and 
  
 (ii) Employer’s obligation to pay such installments after expiration of
the Employment Term shall be reduced by the amount of employment compensation (if any) received by Executive from a subsequent employer of Executive during said one (1) year. 
  
 During the period of this severance pay, Executive shall cooperate with Employer in providing for the orderly transition of Executive’s
duties and responsibilities to other individuals, as reasonably request by Employer. 
  
 4.2 Rights Against Employer. The benefits payable under this Article IV are exclusive, and no amount shall become payable to any person (including the Executive) by reason of termination of employment for any
reason, with or without Cause, except as provided in this Article IV. Employer shall not be obligated to segregate any of its assets or procure any investment in order to fund the benefits payable under this Article IV. 
  

 6 

 ARTICLE V 
  
 CONFIDENTIAL INFORMATION 
  
 5.1 Executive acknowledges that Employer holds as confidential, and Executive may have access to during the Employment Term, certain information and
knowledge respecting the intimate and confidential affairs of Employer in the various phases of its business, including, but not limited to, trade secrets, data and know-how, improvements, inventions, techniques, marketing plans, strategies,
forecasts, pricing information, and customer lists. During his employment by Employer and thereafter, Executive shall not directly or indirectly disclose such information to any person or use any such information, except as required in the course of
his employment during the Employment Term. All records, files, keys, documents, and the like relating to Employer’s business, which Executive shall prepare, copy or use, or come into contact with, shall be and remain Employer’s sole
property, shall not be removed from Employer’s premises without its written consent, and shall be returned to Employer upon the termination of this Agreement. 
  
 ARTICLE VI 
  
 GENERAL PROVISIONS 
  
 6.1 Entire Agreement. This Agreement contains the entire understanding and sole and entire agreement between the parties with respect to the
subject matter hereof, and supersedes any and all prior agreements, negotiations and discussions between the parties hereto with respect to the subject matter covered hereby. Each party to this Agreement acknowledges that no representations,
inducements, promises or agreements, oral or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be
valid or binding. This Agreement may not be modified or amended by oral agreement, but rather only by an agreement in writing signed by Employer and by Executive which specifically states the intent of the parties to amend this Agreement.

  

 7 

 6.2 Assignment and Binding Effect. Neither this Agreement nor the rights or obligations hereunder
shall be assignable by the Executive. Employer may assign this Agreement to any successor or affiliate of Employer, and upon such assignment any such successor or affiliate shall be deemed substituted for Employer upon the terms and subject to the
conditions hereof. In the event of any merger of Employer or the transfer of all (or substantially all) of Employer’s assets, the provisions of this Agreement shall be binding upon, and inure to the benefit of, the surviving business entity or
the business entity to which such assets shall be transferred. 
  
 6.3 Arbitration. The parties hereto agree that any and all disputes (contract, tort, or statutory, whether under federal, state or local law) between Executive and Employer (including Employer’s employees, officers, directors,
stockholders, members, managers and representatives) arising out of Executive’s employment with Employer, the termination of that employment, or this Agreement, shall be submitted to final and binding arbitration. The parties shall be entitled
to discovery sufficient to adequately arbitrate the claims and defenses including access to essential documents and witnesses as determined by the arbitrator. Such arbitration shall take place in the County of San Diego, and may be compelled and
enforced according to the California Arbitration Act (Code of Civil Procedure §§ 1280 et seq.). Unless the parties mutually agree otherwise, such arbitration shall be conducted before the American Arbitration Association,
according to its Commercial Arbitration Rules. Judgment on the award the arbitrator renders may be entered in any court having jurisdiction over the parties. Arbitration shall be initiated in accordance with the Commercial Arbitration Rules of the
American Arbitration Association. 
  

 8 

 6.4 No Waiver. No waiver of any term, provision or condition of this Agreement, whether by conduct
or otherwise, in any one or more instances shall be deemed or be construed as a further or continuing waiver of any such term, provision or condition, or as a waiver of any other term, provision or condition of this Agreement. 
  
 6.5 Governing Law; Rules of Construction. This Agreement has been
negotiated and executed in, and shall be governed by and construed in accordance with the laws of, the State of California. Captions of the several Articles and Sections of this Agreement are for convenience of reference only, and shall not be
considered or referred to in resolving questions of interpretation with respect to this Agreement. 
  
 6.6 Notices. Any notice, request, demand or other communication required or permitted hereunder shall be deemed to be properly given when
personally served in writing, or when deposited in the United States mail, postage pre-paid, addressed to Employer or Executive at his last known address. Each party may change its address by written notice in accordance with this Section.

  
 Address for Employer: 
  
 PriceSmart, Inc. 
 9740 Scranton Road 
 San Diego, CA. 92121 
  

 9 

 Address for Executive: 
  
 Jose Luis Laparte 
 2005 SE Hilton Head Drive, Apt #23 
 Bentonville, Arkansas 72712 
  
 6.7 Severability. The provisions of this Agreement are severable. If any provision of this Agreement shall be held to
be invalid or otherwise unenforceable, in whole or in part, the remainder of the provisions or enforceable parts hereof shall not be affected thereby and shall be enforced to the fullest extent permitted by law. 
  
 6.8 Attorneys’ Fees. In the event of any arbitration or
litigation brought to enforce or interpret any part of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys’ fees, as well as all other litigation costs and expenses as an element of damages. 
  
 IN WITNESS WHEREOF, this Agreement has been executed and delivered by the
parties hereto as of the date first above written. 
  

					
	EMPLOYER	 	                EXECUTIVE	 	 

  

							
	 PRICESMART, INC.
	 	Name:	 	 /s/ Jose Luis Laparte

	 	 	 	 	 	 	 Jose Luis Laparte

	 By:
	 	 /s/ Robert E. Price

	 	 	 	 
	 Name:
	 	 Robert E. Price
	 	 	 	 
	 Title:
	 	 Interim President and Chief Executive Officer
	 	 	 	 

  

 10 

 EXHIBIT “A” TO EMPLOYMENT AGREEMENT 
  
  

	 	•	Housing Allowance - $50,000 (Rent). 

  

	 	•	Three round trips from Mexico City to San Diego for each of Consultant’s wife and children. * 

  

	 	•	A total of eight round trips from Mexico City to San Diego which may be used by any additional family members. * 

  

	 	•	Reasonable moving expenses to Mexico at the end of the employment term (except for a termination under Section 3.4). * 

	*	These benefits shall be paid by Price promptly upon receipt of applicable invoices. 

  

 11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}]]