Document:

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                            ASSET PURCHASE AGREEMENT

ASSET PURCHASE AGREEMENT (the "Agreement"), dated as of March 1, 2000, between
Club - 4U, a California corporation ("Buyer"), and PriceSmart, Inc., a Delaware
corporation ("Seller").

WHEREAS, Seller is engaged in, among other things, the travel business; and

WHEREAS, Seller desires to sell to Buyer, and Buyer desires to purchase from
Seller, all of the assets, and properties of Seller used primarily in its travel
business, all on the terms and subject to the conditions set forth herein;

NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter set forth, it is hereby agreed between Seller and Buyer as follows:

                                    ARTICLE I

                                PURCHASE AND SALE

1.1 PURCHASED ASSETS. Upon the terms and subject to the conditions of this
Agreement, on the Closing Date, Seller shall sell, transfer, assign, convey and
deliver to Buyer, and Buyer shall purchase from Seller, free and clear of all
encumbrances and liabilities (except for Assumed Liabilities) all of the assets
and properties of Seller or every kind and description, to the extent
transferable, wherever located, real, personal or mixed, tangible or intangible,
used primarily in connection with the Seller's travel business (such business
referred to herein as the "Business") (herein collectively called the "Purchased
Assets"). Seller represents and warrants that, at Closing, it will have and
transfer to Buyer good and marketable title to all Purchased Assets, free of all
liens and encumbrances.

1.2 EXCLUDED ASSETS. Notwithstanding the provisions of Section 1.1, the
Purchased Assets shall not include the following (herein referred to as the
"Excluded Assets"):

     (a) All cash, bank deposits and cash equivalents;

     (b) Open Bookings (as defined below) to the extent shown on the schedule
delivered at Closing in accordance with Section 5.4(a)(ii);

     (c) The name "PriceSmart, Inc." or any related or similar trade names,
trademarks, service marks, URLs or logos to the extent the same incorporate the
name "PriceSmart, Inc." or "PriceSmart"; it being understood that Seller shall
license to Buyer the names "PriceSmart Vacations" or "PriceSmart Travel"
pursuant to Section 1.5 hereof;

     (d) All contracts of insurance; and all corporate minute books and stock
transfer books and the corporate seal of Seller.

1.3 ASSUMED LIABILITIES. On the Closing Date, Buyer shall deliver to Seller the
Assignment and Assumption Agreement pursuant to which Buyer shall assume and
agree to discharge the following obligations and liabilities of Seller (referred
to herein as "Assumed Liabilities") in accordance with their respective terms
and subject to the respective conditions thereof: All obligations arising on and
after Closing under the contracts listed on Schedule 1.3 attached hereto.

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1.4 SERVICE PROVIDER AGREEMENTS AND AGENCY LICENSES. Seller has informed Buyer
that there are various agreements and licenses between Seller and various
service providers and agencies that require the consent of the service providers
or agencies to the assignment thereof. Seller makes no representations or
warranties as to the transferability of these or any other agreements or
licenses. Seller, however, shall cooperate with Buyer and use its reasonable
best efforts to transfer and assign such agreements and licenses to Buyer as
soon as practicable in accordance with the terms thereof.

1.5 LICENSE. Effective upon the Closing, Seller hereby grants Buyer an
exclusive, royalty-free, license for the United States, for an unlimited period
following the Closing, to use the names "PriceSmart Vacations" and "PriceSmart
Travel" solely in connection with Buyer's operation of the Business; provided,
however, that Buyer shall be subject to the same limitations on the use of the
"PriceSmart" name to which Seller may be bound under: (i) the Agreement
Concerning Transfer of Certain Assets, entered into between PriceCostco, Inc.,
Price Enterprises, Inc. and certain of their affiliates, in November, 1996; and
(ii) the Agreement dated August 1, 1999 entered into between Seller and
Associated Wholesale Grocers, Inc.

                                   ARTICLE II

                                 PURCHASE PRICE

2.1 PURCHASE PRICE. The purchase price for the Purchased Assets (the "Purchase
Price") shall be One Million Five Hundred Thousand Dollars ($1,500,000).

                                   ARTICLE III

                                     CLOSING

3.1 CLOSING DATE. The Closing shall be consummated on the earlier of March 1,
2000, or a date agreed upon by Buyer and Seller (the "Closing Date"), but in no
event later than August 1, 2000, at the offices of the Seller, 4649 Morena
Blvd., San Diego, California 92117.

3.2 BUYER'S DELIVERIES. At Closing, Buyer shall pay the entire Purchase Price to
Seller and pay to Seller an amount equal to the expected commissions on the
Prepaid Open Bookings (as defined below), and Buyer shall deliver to Seller the
Assignment and Assumption Agreement, duly executed by Buyer.

3.3 SELLER'S DELIVERIES. Seller shall deliver to Buyer all the following: (a) at
Closing the Assignment and Assumption Agreement, duly executed by Seller; and
(b) at or after Closing such other bills of sale, assignments and other
instruments of transfer or conveyance as Buyer may reasonably request or as may
be otherwise necessary to evidence and effect the sale, assignment, transfer,
conveyance and delivery of the Purchased Assets to Buyer.

                                   ARTICLE IV

                        ACTION PRIOR TO THE CLOSING DATE

4.1  OPERATIONS PRIOR TO THE CLOSING DATE.

     (a) Prior to the Closing Date, Seller shall operate and carry on the
Business only in the ordinary course and substantially as presently operated.

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     (b) Buyer shall notify Seller within three (3) business days after each
acceptance of an offer of employment with Buyer by an employee employed in the
Business.

                                    ARTICLE V

                              ADDITIONAL AGREEMENTS

5.1 DISCHARGE OF THE BUSINESS'S LIABILITIES. Seller covenants and agrees that it
will pay and discharge, and hold Buyer harmless from, each and every liability
and obligation of Seller in respect of the Business or the Purchased Assets
arising from events occurring on or prior to the Closing Date, excepting only
those liabilities and obligations expressly assumed by Buyer at the Closing
pursuant to the Assignment and Assumption Agreement delivered to Seller at the
Closing, it being understood and agreed that Buyer is assuming no liabilities or
obligations of Seller other than the Assumed Liabilities. Any sales tax, use
tax, or similar tax attributable to the sale or transfer of the Purchased Assets
and the Assumed Liabilities shall be paid by Seller.

5.2  EMPLOYEES AND EMPLOYEE RELATED AGREEMENTS.

     (a) Seller shall take all actions necessary in order for both Seller and
Buyer to be in full compliance with Part 6 of Title I of ERISA and Section
49800B of the Code (regarding continuation of health benefits) and all state
laws of a similar nature with regard to all entitlements to continued health
benefits arising with respect to the Business or any other business of Seller.

     (b) Seller represents and warrants that, under Seller's Severance Policy
(applicable to Seller's employees, including those employees who are members of
Teamsters Local No. 542 employed in the Business), employees of Seller are not
entitled to severance benefits where their employment has been terminated as a
result of a sale of part of Seller's business or assets but they have been
offered a comparable position by the acquiring company.

     (c) Buyer shall have no obligation to offer employment to any employee of
the Seller whether or not such employee is rendering services with respect to
the Business.

     (d) Buyer has offered comparable employment to all but one of the employees
of Seller who are involved in the Business. Buyer agrees that it will be solely
responsible for any severance or other payments due any and all of the employees
to which it has offered employment who ultimately accept such employment. Buyer
further agrees that Buyer will credit employees who have accepted such offers of
employment with: (i) the number of vacation day accruals currently existing for
each such employee; and (ii) the same vesting rights as such employees currently
have with respect to existing profit sharing/401(k) plan contributions.

     (e) Seller shall be solely responsible for any severance or other payments
due to the one employee involved in the Business not offered employment by
Buyer.

5.3 LEASE. Subject to the consent of Seller's landlord, as promptly as
practicable following the Closing, Buyer and Seller will enter into a lease on
the terms described in Exhibit A, under which Buyer will have the right to
operate the Business in the space where it is now conducted, at 4649 Morena
Boulevard, San Diego, California, 92117.

5.4  OPEN BOOKINGS.

     (a) On the Closing Date, Seller will deliver to Buyer two schedules
describing travel bookings made by Seller on behalf of customers prior to the
Closing Date ("Open Bookings"): (i) a schedule that

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contains a list (by customer name, travel service provider, amounts paid by the
customer to the provider prior to the Closing Date, any amounts to be paid by
the customer to the provider on or after the Closing Date and any commissions to
be paid on or after the Closing Date) of Open Bookings for which Buyer will make
collections on and after the Closing Date (the "Prepaid Open Bookings") and for
which Buyer will pay to Seller on the Closing Date an amount equal to the net
present value of the expected commissions and (ii) a schedule that contains a
list (by customer name, travel service provider, amounts paid by the customer to
the provider prior to the Closing Date, any amounts to be paid by the customer
to the provider on or after the Closing Date and any commissions to be paid on
or after the Closing Date) of Open Bookings for which Seller will make
collections on and after the Closing Date.

     (b) Within five (5) business days of the receipt by Seller on or after the
Closing Date of any Prepaid Open Bookings, Seller shall endorse such commission
to the order of Buyer and forward it to Buyer.

     (c) Within five (5) business days of receipt by Buyer on or after the
Closing Date of commissions with respect to Open Bookings other than Prepaid
Open Bookings, Buyer shall forward to Seller the amount of the commission
received.

     (d) Seller shall have no obligation to reimburse Buyer for commissions
prepaid by Buyer to Seller on Prepaid Open Bookings if Buyer does not actually
receive such commissions (other than as a result of such commissions being paid
by the providers directly to Seller).

                                   ARTICLE VI

                                 INDEMNIFICATION

6.1  INDEMNIFICATION BY SELLER.

     (a) Seller agrees to indemnify and hold harmless the Buyer from and against
any and all losses and expenses incurred by Buyer in connection with or arising
from:

          (i) any breach by Seller of any of its covenants, representations or
warranties in this Agreement or in any other instrument given by Seller to Buyer
pursuant to this Agreement;

          (ii) the failure of Seller to comply with any applicable bulk sales
law.

     (b) The indemnification provided for in this Section 6.1 shall terminate
four (4) years after the Closing Date, except that the indemnification by Seller
shall continue as to: the obligations and representations of Seller under the
Assignment and Assumption Agreement, as to which no time limitation shall apply.

     (c) Seller's obligations to indemnify and hold harmless Buyer shall be
limited to an amount equal to the Purchase Price.

                                   ARTICLE VII

                               GENERAL PROVISIONS

7.1 SURVIVAL OF OBLIGATIONS. All representations, warranties, covenants and
obligations contained in this Agreement shall survive the consummation of the
transactions contemplated by this Agreement.

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7.2 NOTICES. All notices or other communications required or permitted hereunder
shall in be writing and shall be deemed given or delivered when delivered
personally or when sent by registered or certified mail or by private courier
addressed as follows:

     IF TO BUYER, TO:                         IF TO SELLER, TO:

     Club - 4U                                PriceSmart, Inc.
     Suite 520                                4649 Morena Boulevard
     7979 Ivanhoe Avenue                      San Diego, CA 92117
     La Jolla, CA 92037                       Attn: President
     Attn: President

or to such other address as such party may indicate by a notice delivered to the
other party hereto.

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7.3  ACCESS TO RECORDS AFTER CLOSING.

          For a period of six (6) years after the Closing Date, Seller and its
representatives shall have reasonable access to all of the books and records of
the Business transferred to Buyer hereunder to the extent that such access may
reasonably be required by Seller in connection with matters relating to or
affected by the operations of the Business prior to the Closing Date. If Buyer
shall desire to dispose of any of such books and records prior to the expiration
of such six-year period, Buyer shall, prior to such disposition, give Seller a
reasonable opportunity, at Seller's expense, to segregate and remove such books
and records as Seller may select.

7.4 ENTIRE AGREEMENT; AMENDMENTS. This Agreement and the Exhibits and Schedules
referred to herein and the documents delivered pursuant hereto contain the
entire understanding of the parties hereto with regard to the subject matter
contained herein or therein, and supercede all prior agreements, understandings
or letters of intent between or among any of the parties hereto. This Agreement
shall not be amended, modified or supplemented except by a written instrument
signed by an authorized representative of each of the parties hereto.

7.5 INTERPRETATION. Article titles and headings to sections herein are inserted
for convenience of reference only and are not intended to be a part of or to
affect the meaning or interpretation of this Agreement.

7.6 WAIVERS. Any term or provision of this Agreement may be waived, or the time
for its performance may be extended, by the party or parties entitled to the
benefit thereof. Any such waiver shall be validly and sufficiently authorized
for the purposes of this Agreement if, as to any party, it is authorized, in
writing, by an authorized representative of such party. The failure of any party
hereto to enforce at any time any provision of this Agreement shall not be
construed to be a waiver of such provision, nor in any way to affect the
validity of this Agreement or any party hereof or the right of any party
thereafter to enforce each and every such provision. No waiver of any breach of
this Agreement shall be held to constitute a waiver of any other or subsequent
breach.

7.7 EXPENSES. Each party hereto will pay all costs and expenses incident to its
negotiation and preparation of this Agreement and to its performance and
compliance with all agreements and conditions contained herein on its part to be
performed or complied with, including the fees, expenses and disbursements of
its counsel and accountants.

7.8 PARTIAL INVALIDITY. Wherever possible, each provision hereof shall be
interpreted in such manner as to be effective and valid under applicable law,
but in case any one or more of the provisions contained herein shall, for any
reason, be held to be invalid, illegal or unenforceable in any respect, such
provision shall be ineffective to the extent, but only to the extent, of such
invalidity, illegality or unenforceability without invalidating the remainder of
such invalid, illegal or unenforceable provision or provisions or any other
provisions hereof, unless such a construction would be unreasonable.

7.9 GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the internal laws (as opposed to the conflicts of law
provisions) of the State of California.

7.10 ARBITRATION. In the event of any dispute between the parties hereto with
respect to this Agreement, such dispute shall be settled by binding arbitration
by the American Arbitration Association pursuant to its Rules of Commercial
Arbitration then in effect.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
the day and year first above written.

PRICESMART, INC.                              CLUB - 4U

BY: /s/ KURT MAY                              BY:. /s/ SCOTT VOAK
ITS: CHIEF OPERATING OFFICER                  ITS: PRESIDENT

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                                   EXHIBIT A

        SUBLEASE BY PRICESMART, INC. (SUBLESSOR) TO CLUB 4U (SUBLESSEE)

PREMISES:   Approximately 5,000 square feet located at 4649 Morena Blvd. (in the
            area which has been occupied by the PriceSmart Travel Department);
            additionally, Sublessee's employees who work at the premises may
            park their vehicles in designated parking lot.

TERM:       Through August 31, 2001; terminable upon sixty (60) days notice by
            either Sublessor or Sublessee.

RENT/CAM:   $1.10 per square foot (Monthly Rent/CAM of $5,500)

USE:        Call center for travel services and products, and related
            business/office use.

OTHER:      (i) Sublease shall be subject to all of the terms, covenants and
            conditions of the Lease for 4649 Morena Blvd., under which
            PriceSmart is Lessee.

            (ii) In the event Sublessee is occupying the subleased premises when
            Sublessor accepts an offer to receive consideration in return for
            Sublessor's agreement to terminate its rights under the
            aforementioned Lease, Sublessee shall be entitled to a pro-rata
            share of such consideration; such pro-rata share shall be based upon
            the square footage leased under the Sublease as compared to the
            square footage leased under the Lease.

In addition, the following services shall be provided by PriceSmart to Club 4U:

             IT SUPPORT:  HELP DESK                  $2,000 PER MONTH
             ----------
             Technical Support

HR/PAYROLL SERVICES:   $253.21 per employee
-------------------    (For 39 employees, $823 per month)

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               BILL OF SALE, ASSIGNMENT AND ASSUMPTION AGREEMENT
                                  (CLUB - 4U)

This BILL OF SALE, ASSIGNMENT AND ASSUMPTION AGREEMENT (the "AGREEMENT") is
made, executed and delivered on March 1, 2000, by, on the one hand, PriceSmart,
Inc., a Delaware corporation ("SELLER") and, on the other hand, Club - 4U, a
California corporation ("BUYER").

                                    RECITALS

A. Seller and Buyer, have entered into that certain Asset Purchase Agreement,
dated as of March 1, 2000, as may be amended from time to time (the "ASSET
PURCHASE AGREEMENT"), pursuant to which, among other things, Seller has agreed
to sell, convey, assign, transfer and deliver the Purchased Assets (as such term
is defined in the Asset Purchase Agreement) to Buyer.

B. Seller and Buyer now desire to carry out the intent and purpose of the
Asset Purchase Agreement by Seller's execution and delivery to Buyer of this
Agreement evidencing (i) the sale, conveyance, assignment, transfer and
delivery to Buyer of the Purchased Assets, subject to the Assumed Liabilities
(as such terms are defined in the Asset Purchase Agreement), and (ii) the
assumption by Buyer of the Assumed Liabilities which are required to be
performed by Buyer pursuant to the Asset Purchase Agreement.

NOW, THEREFORE, in consideration of the premises and mutual agreements herein
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto, intending to be legally
bound, agree as follows:

                                    AGREEMENT

ARTICLE I - ASSIGNMENT

          SECTION 1.1. SALE AND ASSIGNMENT. Subject to the terms and conditions
of the Asset Purchase Agreement, Seller does hereby sell, convey, assign,
transfer and deliver unto Buyer, its assigns, transferees and successors,
forever, all of Seller's right, title and interest in and to the Purchased
Assets described in SECTION 1.1 of the Asset Purchase Agreement, subject to the
Assumed Liabilities that relate to the Purchased Assets.

          SECTION 1.2. ACCEPTANCE. Buyer hereby accepts the foregoing sale,
conveyance, assignment, transfer and delivery of the Purchased Assets described
in SECTION 1.1 of the Asset Purchase Agreement.

  ARTICLE II - ASSUMPTION

          SECTION 2.1. ASSUMPTION. Buyer hereby agrees to assume, and hereby
agrees to pay, discharge and perform, as and when due, all of Assumed
Liabilities described in SECTION 1.3 of the Asset Purchase Agreement.

          SECTION 2.2. SUCCESSORS AND ASSIGNS. The obligations undertaken
pursuant to this Article II shall bind and inure to the benefit of the
respective parties and their assigns, transferees and successors.

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ARTICLE III - MISCELLANEOUS

          SECTION 3.1. DEFINITIONS. Except as otherwise expressly provided
herein, capitalized terms used but not otherwise defined in this Agreement,
shall have the meanings ascribed to such terms in the Asset Purchase Agreement.

          SECTION 3.2. RELATIONSHIP WITH THE ASSET PURCHASE AGREEMENT. This
Agreement is governed by and subject to all of the representations, warranties,
covenants, indemnities, and other terms and conditions of the Asset Purchase
Agreement, the terms of which are hereby incorporated into this Agreement. In
the event that any provision of this Agreement is construed to conflict with a
provision of the Asset Purchase Agreement, the provision of the Asset Purchase
Agreement shall be deemed controlling.

          SECTION 3.3. GOVERNING LAW. This Agreement shall be governed by, and
construed with, the law of the State of California.

          SECTION 3.4. COUNTERPARTS. This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

          SECTION 3.5. SEVERABILITY. Each provision of this Agreement is
intended to be severable. If any term or provision is illegal or invalid for any
reason whatsoever, such illegality or invalidity shall not affect the legality
or validity of the remainder of the Agreement.

          SECTION 3.6. EXECUTION OF DOCUMENTS. Each party hereto agrees to
execute all documents necessary to carry out the purpose of this Agreement and
to cooperate with each other for the expeditious filing of any and all documents
and the fulfillment of the terms of this Agreement.

          IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement as
of the 1st day of March 2000.

SELLER:                                      BUYER:

PRICESMART, INC.                             CLUB - 4U

By: /s/ Kurt May                             By: /s/ Scott Voak
       Chief Operating Officer                     President

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                            STOCK PURCHASE AGREEMENT

         This STOCK PURCHASE AGREEMENT (this "Agreement") is made and entered
into as of March 15, 2000 by and between PriceSmart, Inc., a Delaware
corporation ("PriceSmart"), Bueller's Corporation Ltd., a British Virgin
Island International Business Corporation ("Bueller's"), and Rafael E.
Barcenas, Uttam Nandwani, Morris Harari, Joseph Azrak, Raymond Dayan and
Roberto Novey (the "Shareholders").

                              W I T N E S S E T H:

         WHEREAS, Bueller's desires to sell to PriceSmart and PriceSmart
desires to purchase from Bueller's shares of capital stock of PriceCosco de
Panama, S.A. and PB Real Estate, S.A. (together, the "Panama Corporations"),
on the terms and conditions set forth in this Agreement;

         NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

         1. AGREEMENT TO PURCHASE AND SELL STOCK. Bueller's agrees to sell to
PriceSmart at the Closing, and PriceSmart agrees to purchase from Bueller's
at the Closing, 49,000 common shares, without par value, of PriceCostco de
Panama, S.A. and 49,000 common shares, without par value, of PB Real Estate,
S.A (collectively, the "Purchased Shares") payable by PriceSmart by issuing
to the Shareholders (as instructed by Buller's) an aggregate of 306,748
shares of PriceSmart common stock, par value $.0001 per share (the "Issued
Shares"). The Shares shall be allocated to the Shareholders in the amounts
set forth on Exhibit A to this Agreement.

         2. CLOSING. The purchase and sale of the Purchased Shares will take
place at the offices of PriceSmart at 4649 Morena Boulevard, San Diego, CA
92117, no later than March 20, 2000, or at such other time and place on which
PriceSmart and Bueller's mutually agree (which time and place are referred to
in this Agreement as the "Closing"). At the Closing, Bueller's will deliver
to PriceSmart its certificates, properly endorsed to PriceSmart or its
designee, representing the Purchased Shares and PriceSmart will deliver to
the Shareholders certificates representing the Issued Shares.

         3. MUTUAL REPRESENTATIONS AND WARRANTIES. For purposes of this
Section 3, each of PriceSmart, Bueller's and the Shareholders are referred to
as a "Party," and collectively, as the "Parties." With respect to the Issued
Shares, the Shareholders hereby represent and warrant to PriceSmart, and with
respect to the Purchased Shares, PriceSmart hereby represents and warrants to
Bueller's, as follows:

                  3.1 PURCHASE FOR OWN ACCOUNT. The Issued Shares or the
Purchased Shares, as the case may be, to be purchased by such Party hereunder
will be acquired for investment for such Party's own account, not as a
nominee or agent, and not with a view to the public resale or distribution
thereof within the meaning of the Securities Act of 1933, as amended (the
"Securities Act"). If not an individual, such Party also represents that such
Party has not been formed for the specific purpose of acquiring the Issued
Shares or the Purchased Shares, as the case may be.

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                  3.2 DISCLOSURE OF INFORMATION. Such Party has received or
has had full access to all the information it considers necessary or
appropriate to make an informed investment decision with respect to the
Issued Shares or the Purchased Shares, to be purchased by such Party under
this Agreement. Such Party further has had an opportunity to ask questions
and receive answers from PriceSmart or Bueller's, as the case may be,
regarding the terms and conditions of the Issued Shares or the Purchased
Shares and to obtain additional information (to the extent PriceSmart or
Bueller's possessed such information or could acquire it without unreasonable
effort or expense) necessary to verify any information furnished to such
Party or to which such Party had access. The foregoing, however, does not in
any way limit or modify the representations and warranties made by such Party
in this Section 3.

                  3.3 INVESTMENT EXPERIENCE. Such Party understands that the
purchase of the Issued Shares or the Purchased Shares involves substantial
risk. Such Party: (i) has experience as an investor in securities of
companies in the development stage and acknowledges that such Party is able
to fend for itself, can bear the economic risk of such Party's investment in
the Issued Shares or the Purchased Shares and has such knowledge and
experience in financial or business matters that such Party is capable of
evaluating the merits and risks of this investment in the Issued Shares or
the Purchased Shares and protecting its own interests in connection with this
investment and/or (ii) has a preexisting personal or business relationship
with PriceSmart or Bueller's, as the case may be, and certain of its
officers, directors or controlling persons of a nature and duration that
enables such Party to be aware of the character, business acumen and
financial circumstances of such persons.

                  3.4 ACCREDITED INVESTOR STATUS. Such Party is an
"accredited investor" within the meaning of Regulation D promulgated under
the Securities Act.

                  3.5 RESTRICTED SECURITIES. Each of the Shareholders
understands that the Issued Shares are characterized as "restricted
securities" under the Securities Act. Each of the Shareholders further
understands that the Issued Shares will be issued in a transaction not
involving a public offering and that under the Securities Act and applicable
regulations thereunder such securities may be resold without registration
under the Securities Act only in certain limited circumstances. In this
connection, each of the Shareholders represents that he is familiar with Rule
144 of the Securities and Exchange Commission (the "Commission"), as
presently in effect, and understands the resale limitations imposed thereby
and by the Securities Act. Each of the Shareholders understands that
PriceSmart is under no obligation to register any of the securities sold
hereunder.

                  3.6 LEGEND. It is understood that the certificates
evidencing the Issued Shares will bear the legend set forth below:

                           "THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER
THE SECURITIES LAWS OF CERTAIN STATES. 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

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EXEMPTION THEREFROM. THE INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED
TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF
TIME. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN
FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED
TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE
SECURITIES LAWS."

         The legend set forth above shall be removed by PriceSmart from any
certificate evidencing the Issued Shares upon (i) a sale by the holder
pursuant to Rule 144 or an effective registration statement and in either
case in accordance with Section 6.1 hereof or (ii) delivery to PriceSmart,
following the one-year period described at Section 6.1, of an opinion by
counsel, reasonably satisfactory to PriceSmart, that a registration statement
under the Securities Act is at that time in effect with respect to the
legended security or that such security can be freely transferred in a public
sale without such a registration statement being in effect and that such
transfer will not jeopardize the exemption or exemptions from registration
pursuant to which PriceSmart issued the Issued Shares.

         4. REPRESENTATIONS AND WARRANTIES OF PRICESMART. PriceSmart hereby
represents and warrants to Bueller's and the Shareholders as follows:

                  4.1 ORGANIZATION, GOOD STANDING AND QUALIFICATION.
PriceSmart is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware and has all requisite
corporate power and authority to carry on its business as now conducted and
as proposed to be conducted. PriceSmart is duly qualified to transact
business and is in good standing in each jurisdiction in which the failure so
to qualify would have a material adverse effect on its business or properties.

                  4.2 VALID ISSUANCE OF STOCK. The Issued Shares, when
issued, sold and delivered in accordance with the terms of this Agreement for
the consideration provided herein, will be duly and validly issued, fully
paid and nonassessable.

                  4.3 AUTHORIZATION. All corporate action on the part of
PriceSmart and its officers, directors and stockholders, necessary for the
authorization, execution and delivery of this Agreement and the performance
of all obligations of PriceSmart hereunder have been taken or will be taken
prior to the Closing, and this Agreement has been duly executed and delivered
by PriceSmart and constitutes a valid and legally binding obligation of
PriceSmart, 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 and (ii) the effect of rules of law governing the
availability of equitable remedies.

                  4.4 NO CONFLICTS WITH OTHER AGREEMENTS. The execution,
delivery and performance by PriceSmart of this Agreement will not violate or
be in conflict with, result in a breach of or constitute (with or without
notice or lapse of time or both) a default under (i) any provision of
PriceSmart's certificate of incorporation or bylaws as they shall be in
effect; (ii) any provision of any judgment, decree or order to which
PriceSmart is a party or by which it is

                                       3
<PAGE>

bound; (iii) any material contract, obligation or commitment to which
PriceSmart is a party or by which it is bound; or (iv) any statute, rule or
governmental regulation applicable to PriceSmart.

         5. REPRESENTATIONS AND WARRANTIES OF BUELLER'S AND THE SHAREHOLDERS.
Bueller's and the Shareholders hereby represent and warrant to PriceSmart as
follows:

                  5.1 ORGANIZATION, GOOD STANDING AND QUALIFICATION.
Bueller's is a corporation duly organized, validly existing and in good
standing under the laws of the British Virgin Islands and has all requisite
corporate power and authority to carry on its business as now conducted and
as proposed to be conducted. Bueller's is duly qualified to transact business
and is in good standing in each jurisdiction in which the failure so to
qualify would have a material adverse effect on its business or properties.
The Shareholders are the only shareholders in Bueller's.

                  5.2 AUTHORIZATION. All action on the part of Bueller's and
its shareholders, necessary for the authorization, execution and delivery of
this Agreement and the performance of all obligations of Bueller's hereunder
have been taken or will be taken prior to the Closing. This Agreement has
been duly executed and delivered by Bueller's and each of the Shareholders
and constitutes a valid and legally binding obligation of Bueller's and each
of the Shareholders, enforceable against each of them 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 and (ii) the effect of rules
of law governing the availability of equitable remedies.

                  5.3 NO CONFLICTS WITH OTHER AGREEMENTS. The execution,
delivery and performance by Bueller's and the Shareholders of this Agreement
will not violate or be in conflict with, result in a breach of or constitute
(with or without notice or lapse of time or both) a default under (i) any
provision of Bueller's' certificate of incorporation, bylaws or other
governing documents as they shall be in effect; (ii) any provision of any
judgment, decree or order to which Bueller's or any of the Shareholders is a
party or by which it is bound; (iii) any material contract, obligation or
commitment to which Bueller's or any of the Shareholders is a party or by
which it is bound; or (iv) any statute, rule or governmental regulation
applicable to Bueller's or any of the Shareholders.

                  5.4 TITLE TO PURCHASED SHARES. Bueller's owns exactly
49,000 common shares of PriceCostco de Panama, S.A. and exactly 49,000 common
shares of PB Real Estate, S.A., free and clear of all liens, encumbrances and
any liabilities, except as may be created hereby. Other than the Purchased
Shares, Bueller's owns no shares of capital stock of, or any other interest
in, either of the Panama Corporations. In addition, Bueller's has no options,
warrants or other rights to acquire shares of capital stock of, or any other
interest in, the Panama Corporations. Following the Closing, Bueller's will
have transferred all of its right, title and interest in the Panama
Corporations to PriceSmart.

         6.       ADDITIONAL PROVISIONS REGARDING THE ISSUED SHARES.

                                       4
<PAGE>

                  6.1 FURTHER LIMITATIONS ON DISPOSITION. Without in any way
limiting the representations set forth above, each of the Shareholders
further agrees not to make any disposition of all or any portion of the
Issued Shares prior to the one-year anniversary of the Closing and thereafter
shall not make any disposition of any portion of the Issued Shares unless and
until:

                           (a) There is then in effect a registration
statement under the Securities Act covering such proposed disposition and
such disposition is made in accordance with such registration statement; or

                           (b) Such Shareholder shall have notified
PriceSmart of the proposed disposition and shall have furnished PriceSmart
with a statement of the circumstances surrounding the proposed disposition,
and (ii) such Shareholder shall have furnished PriceSmart, at such
Shareholder's expense, with an opinion of counsel, reasonably satisfactory to
PriceSmart, that such disposition will not require registration of such
securities under the Securities Act.

         Notwithstanding the provisions of paragraphs (a) and (b) above, no
such registration statement or opinion of counsel shall be required: (i) for
any transfer of any Issued Shares in compliance with Rule 144 of the
Securities Act, or (ii) for any transfer of any Issued Shares by a Party that
is a Shareholdership or a corporation to (A) a Shareholder of such
Shareholdership or shareholder of such corporation, (B) a retired Shareholder
of such Shareholdership who retires after the date hereof, (C) the estate of
any such Shareholder or shareholder, or (iii) for the transfer by gift, will
or intestate succession by any Party to his or her spouse or lineal
descendants or ancestors or any trust for any of the foregoing; PROVIDED that
in each of the foregoing cases the transferee agrees in writing to be subject
to the terms of this Section 6.1 to the same extent as if the transferee were
an original Party hereunder.

         7.       CONDITIONS TO CLOSING.

                  7.1 CONDITIONS TO OBLIGATIONS OF PRICESMART AT CLOSING.
PriceSmart's obligation to purchase the Purchased Shares at the Closing is
subject to the fulfillment to PriceSmart's satisfaction, on or prior to the
Closing, of all of the following conditions, any of which may be waived by
PriceSmart:

                           (a) REPRESENTATIONS AND WARRANTIES TRUE;
PERFORMANCE OF OBLIGATIONS. The representations and warranties made by
Bueller's and the Shareholders in Sections 3 and 5 hereof shall be true and
correct in all material respects on the Closing Date with the same force and
effect as if they had been made on and as of said date and Bueller's and the
Shareholders shall have performed and complied in all material respect with
all obligations and conditions herein required to be performed or complied
with by them on or prior to the Closing and a certificate duly executed by an
officer of Bueller's, to the effect of the foregoing, shall be delivered to
the PriceSmart.

                           (b) QUALIFICATIONS, LEGAL INVESTMENT. All
authorizations, approvals, or permits, if any, of any governmental authority or
regulatory body of the United States or of any state or country that are
required in connection with the lawful sale and issuance of the Purchased

                                       5
<PAGE>

Shares and the Issued Shares shall have been duly obtained and shall be
effective on and as of the Closing. At the time of the Closing, the sale and
issuance of the Purchased Shares and the Issued Shares shall be legally
permitted by all laws and regulations to which PriceSmart and Bueller's are
subject.

                           (c) OPINION OF COUNSEL. PriceSmart shall have
received an opinion of counsel reasonably satisfactory to PriceSmart to the
effect that (a) all documents have been executed and all other acts and
formalities have been properly complied with, pursuant to any applicable
British Virgin Islands or Panama (or other) law or regulation, to effectuate
the sale of Bueller's' right, title and interest in the Panama corporations
to PriceSmart and (b) 100% ownership of the Panama Corporations by PriceSmart
does not violate any law or regulation of Panama.

                  7.2 CONDITIONS TO OBLIGATIONS OF BUELLER'S AND THE
SHAREHOLDERS AT CLOSING. The obligations of Bueller's and the Shareholders to
issue and sell the Purchased Shares to be sold at the Closing is subject to
the fulfillment to Bueller's' satisfaction, on or prior to the Closing of the
following conditions, any of which may be waived by Bueller's:

                           (a) REPRESENTATIONS AND WARRANTIES TRUE;
PERFORMANCE OF OBLIGATIONS. The representations and warranties made by
PriceSmart in Sections 3 and 4 hereof shall be true and correct in all
material respects at the date of the Closing with the same force and effect
as if they had been made on and as of the date hereof. PriceSmart shall have
performed and complied with all agreements and conditions herein required to
be performed or complied with by it on or before the Closing and a
certificate duly executed by an officer of PriceSmart, to the effect of the
foregoing, shall be delivered to Bueller's.

                           (b) QUALIFICATIONS, LEGAL INVESTMENT. All
authorizations, approvals, or permits, if any, of any governmental authority
or regulatory body of the United States or of any state or country that are
required in connection with the lawful sale and issuance of the Purchased
Shares and the Issued Shares shall have been duly obtained and shall be
effective on and as of the Closing. At the time of the Closing the sale and
issuance of the Purchased Shares and the Issued Shares shall be legally
permitted by all laws and regulations to which PriceSmart, Bueller's and the
Shareholders are subject.

         8.       OPTIONAL REDEMPTION.

                  8.1 REDEMPTION. At the written request delivered to
PriceSmart by Bueller's on behalf of the Shareholders within five days
following the one-year anniversary of the Closing, PriceSmart shall redeem
(unless otherwise prevented by law) at a redemption price (the "Redemption
Price"), payable in cash, equal to $46.86 per share any or all of the Issued
Shares. The written request shall specify the number of Issued Shares to be
redeemed and shall indicate the holders of the Issued Shares to be redeemed
and the number of Issued Shares each such holder is seeking to have redeemed.

                  8.2 PROCEDURE FOR REDEMPTION.

                                       6

<PAGE>

                           (a) A request for redemption shall be sent by
Bueller's to PriceSmart at its principal executive offices by overnight
courier or by first class mail, postage prepaid, and must be received by
PriceSmart during the period described in Section 8.1.

                           (b) Promptly after receipt of the written notice
contemplated by Section 8.1, PriceSmart shall send a response to Bueller's
specifying a date (the "Redemption Date"), which shall not be less than 5 nor
more than 10 days after PriceSmart's receipt of the written request from
Bueller's, for the closing of the redemption (the "Redemption Closing"). At
the Redemption Closing, each of the Shareholders shall tender his Issued
Shares to PriceSmart in exchange for cash, payable by check or wire transfer,
in an amount equal to the number of Issued Shares tendered by such
Shareholder multiplied by the Redemption Price.

                           (c) From and after PriceSmart's receipt of the
written notice provided by Bueller's to PriceSmart pursuant to Section 8.1,
unless there shall have been a default in payment of the applicable
Redemption Price, all rights of a Shareholder (except the right to receive
the applicable Redemption Price upon presentation and surrender of their
certificate or certificates) shall cease with respect to that number of
Issued Shares he is seeking to have redeemed, and such shares shall not
thereafter be transferred on the books of PriceSmart or be deemed to be
outstanding for any purpose whatsoever.

         9.       MISCELLANEOUS.

                  9.1 SURVIVAL OF WARRANTIES. The representations, warranties
and covenants of the Parties contained in or made pursuant to this Agreement
shall survive the execution and delivery of this Agreement and the Closing
and shall in no way be affected by any investigation of the subject matter
thereof made by or on behalf of PriceSmart, Bueller's or the Shareholders, as
the case may be.

                  9.2 SUCCESSORS AND ASSIGNS. The terms and conditions of
this Agreement shall inure to the benefit of and be binding upon the
respective successors and assigns of the parties.

                  9.3 GOVERNING LAW. This Agreement shall be governed by and
construed under the internal laws of the State of California as applied to
agreements among California residents entered into and to be performed
entirely within California, without reference to principles of conflict of
laws or choice of law.

                  9.4 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.

                  9.5 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 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.

                                       7
<PAGE>

                  9.6 NOTICES. Unless otherwise provided, any notice required
or permitted under this Agreement shall be given in writing and shall be
deemed effectively given upon personal delivery to the party to be notified
or upon deposit with the United States Post Office, by registered or
certified mail, postage prepaid and addressed to the party to be notified at
the address indicated for such party at the address specified on the
signature page, or at such other address as any party or the Company may
designate by giving ten (10) days advance written notice to all other parties.

                  9.7 NO FINDER'S FEES. PriceSmart, Bueller's and each of the
Shareholders represent that they neither are nor will be obligated for any
finder's or broker's fee or commission in connection with this transaction.
Bueller's and the Shareholders agree to indemnify and to hold harmless
PriceSmart from any liability for any commission or compensation in the
nature of a finders' or broker's fee (and any asserted liability) for which
Bueller's or any of the Shareholders is responsible. PriceSmart agrees to
indemnify and hold harmless Bueller's 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 PriceSmart or any of its officers, employees or
representatives is responsible.

                  9.8 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 PriceSmart, Bueller's and
the holders of a majority of the Issued Shares. Any amendment or waiver
effected in accordance with this Section shall be binding upon each holder of
any Issued Shares at the time outstanding, each future holder of such
securities, and PriceSmart.

                  9.9 EXPENSES. Each of the Parties shall pay its own fees
and expenses incurred in entering into this Agreement. 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.

                  9.10 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.

                  9.11 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.

                  9.12 FURTHER ASSURANCES. From and after the date of this
Agreement, upon the request of any of the Parties, the other Parties 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.

                                       8
<PAGE>

                  9.13 ARBITRATION. All disputes and claims concerning the
validity, interpretation, performance, termination and/or breach of this
Agreement ("Dispute(s)") shall be referred for final resolution to
arbitration in Miami, Florida, USA under the UNCITRAL Rules ("Rules") as
administered by the American Arbitration Association. The parties hereby
agree that arbitration hereunder shall be the parties' exclusive remedy and
that the arbitration decision and award, if any, shall be final, binding
upon, and enforceable against, the parties, and may be confirmed by the
judgment of a court of competent jurisdiction. In the event of any conflict
between the Rules and this Section, the provisions of this Section shall
govern.

                                       9
<PAGE>

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

<TABLE>
<CAPTION>
PRICESMART:                                                   BB&M:
<S>                                                           <C>
PriceSmart, Inc.,                                             Bueller's Corporation Ltd.
a Delaware corporation                                        a British Virgin Island company

By:      /s/GILBERT A. PARTIDA                                By: /s/ RAFAEL E. BARCENAS
---------------------------------                             ---------------------------------
Name: GILBERT A. PARTIDA                                      Name: RAFAEL E. BARCENAS

Title:   PRESIDENT AND CEO                                    Title:

Address for Notice:                                           Address for Notice:

4649 Morena Boulevard                                         ---------------------------
San Diego, CA 92117                                           ---------------------------
                                                              Attn: -----------------------

THE SHAREHOLDERS:

/s/ RAFAEL E. BARCENAS                                        /s/ UTTAM NANDWANI
---------------------------------                             ---------------------------------
Rafael E. Barcenas                                            Uttam Nandwani

Address for Notice:                                           Address for Notice

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

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

/s/ MORRIS HARARI                                             /s/ ROBERTO NOVEY
---------------------------------                             ---------------------------------
Morris Harari                                                 Roberto Novey

Address for Notice:                                           Address for Notice

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

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

/s/ JOSEPH AZRAK                                              /s/ RAYMOND DAYAN
---------------------------------                             ---------------------------------
Joseph Azrak                                                  Raymond Dayan

Address for Notice:                                           Address for Notice:

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

-------------------------                                     -------------------------
</TABLE>

                                      10
<PAGE>

                                    EXHIBIT A

                             SHAREHOLDERS ALLOCATION

         The Issued Shares shall be allocated among the Shareholders as follows:

1.  Roberto Novey:                                   19,276

2.  Rafael E. Barcena Perez:                         64,442

3.  Uttan Nandwani:                                  104,380

4.  Joseph Azrak:                                    26,215

5.  Raymond Dayan:                                   15,337

6.  Morris Harari:                                   77,098

                                       11

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