First Supplemental Indenture, dated as of August 24, 2009



 Exhibit 4.3 
 EXECUTED VERSION 
  
  
  
 FIRST SUPPLEMENTAL INDENTURE 

between 
 POPULAR, INC.

 and 
 THE BANK OF
NEW YORK MELLON 
  
  
 Dated as of August 24, 2009 
  
  
  
  
  







 TABLE OF CONTENTS 
  

					
	 	  	 	  	PAGE
	
	ARTICLE I
	
	DEFINITIONS
			
	Section 1.1	  	Definition of Terms	  	1
	
	ARTICLE II
	
	GENERAL TERMS AND CONDITIONS OF THE
DEBENTURES
			
	Section 2.1	  	Designation and Principal Amount	  	3
	Section 2.2	  	No Maturity	  	3
	Section 2.3	  	Form and Payment	  	3
	Section 2.4	  	Global Debenture	  	3
	Section 2.5	  	Interest	  	5
	Section 2.6	  	Forms of Declaration and Guarantee Agreement	  	5
	Section 2.7	  	Events of Default	  	5
	
	ARTICLE III
	
	REDEMPTION OF THE DEBENTURES
			
	Section 3.1	  	Optional Redemption	  	5
	Section 3.2	  	Redemption Procedures	  	6
	Section 3.3	  	No Sinking Fund	  	6
	
	ARTICLE IV
	
	EXTENSION OF INTEREST PAYMENT PERIOD
			
	Section 4.1	  	Extension of Interest Payment Period	  	6
	Section 4.2	  	Notice of Extension	  	7
	Section 4.3	  	Limitation of Transactions	  	7
	
	ARTICLE V
	
	EXPENSES
			
	Section 5.1	  	Payment of Expenses	  	7
	Section 5.2	  	Payment Upon Resignation or Removal	  	8

  
  
  








					
	
	ARTICLE VI
	
	COVENANT TO LIST ON EXCHANGE
			
	Section 6.1	  	Listing on an Exchange	  	8
	
	ARTICLE VII
	
	FORM OF DEBENTURE
			
	Section 7.1	  	Form of Debenture	  	9
	
	ARTICLE VIII
	
	ORIGINAL ISSUE OF DEBENTURES
			
	Section 8.1	  	Original Issue of Debentures	  	9
	
	ARTICLE IX
	
	MISCELLANEOUS
			
	Section 9.1	  	Ratification of Indenture	  	9
	Section 9.2	  	Trustee Not Responsible for Recitals	  	9
	Section 9.3	  	Governing Law	  	9
	Section 9.4	  	Separability	  	9
	Section 9.5	  	Counterparts	  	10

  
  
  







 FIRST SUPPLEMENTAL INDENTURE, dated as
of August 24, 2009 (the “First Supplemental Indenture”), between POPULAR, INC., a Puerto Rico corporation (hereinafter sometimes called the “Company”), and
THE BANK OF NEW YORK MELLON, a New York banking corporation, as trustee (hereinafter sometimes called the “Trustee”)
under the Indenture dated as of August 24, 2009 between the Company and the Trustee (the “Indenture”). 
 WHEREAS, the Company executed and delivered the Indenture to the Trustee to provide for the future issuance of the Company’s unsecured junior subordinated debentures to be issued from time to time
in one or more series as might be determined by the Company under the Indenture, in an unlimited aggregate principal amount which may be authenticated and delivered as provided in the Indenture; 
 WHEREAS, pursuant to the terms of the Indenture, the Company desires to provide for the establishment of a new
series of such securities to be known as its Fixed Rate Perpetual Junior Subordinated Debentures, Series A (the “Debentures”), the form and substance of such Debentures and the terms, provisions and conditions thereof to be set
forth as provided in the Indenture and this First Supplemental Indenture; 
 WHEREAS, the Company and
Popular Capital Trust III, a Delaware statutory trust (the “Trust”), propose to exchange for outstanding Fixed Rate Cumulative Perpetual Preferred Stock, Series C, $1,000 liquidation preference per share, of the Company (the
“Series C Preferred Stock”) $935,000,000 aggregate liquidation amount of the Trust’s Fixed Rate Capital Securities (the “Capital Securities”), representing preferred undivided beneficial interests in the assets
of the Trust, and the Trust proposes to use the Series C Preferred Stock, together with the proceeds of the issuance and sale by the Trust to the Company of $1,000,000 aggregate liquidation amount of its Fixed Rate Common Securities (the
“Common Securities”), to purchase $936,000,000 aggregate principal amount of the Debentures; and 
 WHEREAS, the Company has requested that the Trustee execute and deliver this First Supplemental Indenture and all requirements necessary to make this First Supplemental Indenture a valid instrument in
accordance with its terms, and to make the Debentures, when executed by the Company, and authenticated and delivered by the Trustee, the valid obligations of the Company, have been performed, and the execution and delivery of this First Supplemental
Indenture has been duly authorized in all respects. 
 NOW THEREFORE, in consideration of
the purchase and acceptance of the Debentures by the Holders thereof, and for the purpose of setting forth, as provided in the Indenture, the form and substance of the Debentures and the terms, provisions and conditions thereof, the Company
covenants and agrees with the Trustee as follows: 
 ARTICLE I 
 DEFINITIONS 
 Section 1.1 Definition of Terms. 
 Unless the context otherwise requires: 
 (a)
a term defined in the Indenture has the same meaning when used in this First Supplemental Indenture; 
 (b) a term defined anywhere in this
First Supplemental Indenture has the same meaning throughout; 
  
  

 







 (c) the singular includes the plural and vice versa; 
 (d) a reference to a Section or Article is to a Section or Article of this First Supplemental Indenture; 
 (e) headings are for convenience of reference only and do not affect interpretation; 
 (f) the following terms have the meanings given to them in the Declaration: (i) Capital Securities Certificate; (ii) Delaware Trustee;
(iii) Distributions; (iv) Exchange Agreement; (v) Guarantee; (vi) Property Trustee; and (vii) Trust Securities; and 
 (g) the following terms have the meanings given to them in this Section 1.1(g): 
 “Appropriate Federal Banking
Agency” means the “appropriate Federal banking agency” with respect to the Company as defined in Section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. Section 1813(q)), or any successor provision. 
 “Common Stock” means the common stock, par value $0.01 per share, of the Company. 
 “Compound Interest” shall have the meaning set forth in Section 4.1. 
 “Coupon Rate” shall have the meaning set forth in Section 2.5(a). 
 “Creditor” shall have the meaning set forth in Section 5.1. 
 “Declaration” means the Amended and Restated Declaration of Trust and Trust Agreement of Popular Capital Trust III, a Delaware statutory
trust, dated as of August 24, 2009. 
 “Deferred Interest” shall have the meaning set forth in Section 4.1.

 “Dissolution Event” means the dissolution of the Trust and distribution of the Debentures held by the Property Trustee
pro rata to the holders of the Trust Securities in liquidation of such holders’ interests in the Trust in accordance with the Declaration, such event to occur at the option of the Company at any time upon the terms and conditions set
forth in the Declaration. 
 “Extended Interest Payment Period” shall have the meaning set forth in Section 4.1.

 “Global Debenture” shall have the meaning set forth in Section 2.4(a). 
 “Holder” means any person in whose name at the time a Debenture is registered on the Security Register. 
 “Interest Payment Date” shall have the meaning set forth in Section 2.5(a). 
 “Interest Period” means the period beginning on (and including) the date of issue and ending on (but excluding) the first Interest
Payment Date and each successive period beginning on (and including) the Interest Payment Date and ending on (but excluding) the next succeeding Interest Payment Date. 
 “Non Book-Entry Capital Securities” shall have the meaning set forth in Section 2.4(a). 
 “Redemption Price” shall have the meaning set forth in Section 3.1. 
  

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 “Special Redemption Event” means a Tax Event, Investment Company Event or a Capital
Treatment Event, as the case may be. 
 ARTICLE II 
 GENERAL TERMS AND CONDITIONS OF THE DEBENTURES 
 Section 2.1 Designation and Principal Amount. 
 There is hereby authorized a series of Debt Securities designated as the “Fixed Rate Perpetual Junior Subordinated Debentures, Series A”, in aggregate principal amount of $936,000,000. 
 Section 2.2 No Maturity. 
 The
Debentures shall be perpetual, but shall be redeemable as provided in Article III and subject to acceleration as provided in Article V of the Indenture. 
 Section 2.3 Form and Payment. 
 Except as provided in Section 2.4, the Debentures shall be
issued in fully registered certificated form without interest coupons. Principal and interest on the Debentures issued in certificated form will be payable, the transfer of such Debentures will be registrable and such Debentures will be exchangeable
for Debentures bearing identical terms and provisions at the office or agency of the Trustee in New York, New York; provided, however, that payment of interest may be made at the option of the Company by check mailed to the Holder entitled
thereto at such address as shall appear in the Security Register or by wire transfer to an account appropriately designated by the Holder entitled thereto. Notwithstanding the foregoing, so long as the Holder of any Debentures is the Property
Trustee, the payment of the principal of and interest (including Compound Interest and Additional Interest, if any) on such Debentures held by the Property Trustee will be made at such place and to such account as may be designated by the Property
Trustee. 
 Section 2.4 Global Debenture. 
 (a) In connection with a Dissolution Event, 
  

	 	(i)	the Debentures in certificated form may be presented to the Trustee by the Property Trustee in exchange for a global Debenture in an aggregate principal amount equal to the
aggregate principal amount of all outstanding Debentures (a “Global Debenture”), to be registered in the name of the Depositary, or its nominee, and delivered by the Trustee to the Depositary for crediting to the accounts of its
participants pursuant to the instructions of the Administrative Trustees. The Company upon any such presentation shall execute a Global Debenture in such aggregate principal amount and deliver the same to the Trustee for authentication and delivery
in accordance with the Indenture and this First Supplemental Indenture. Payments on the Debentures issued as a Global Debenture will be made to the Depositary; and 

  

	 	(ii)	 if any Capital Securities are held in non book-entry certificated form (“Non Book-Entry Capital Securities”), the Debentures in certificated form
may be presented to the Trustee by the Property Trustee and any 



  

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Capital Security Certificate which represents Non Book-Entry Capital Securities will be deemed to represent beneficial interests in Debentures presented to
the Trustee by the Property Trustee having an aggregate principal amount equal to the aggregate liquidation amount of the Non Book-Entry Capital Securities until such Capital Security Certificates are presented to the Security registrar for transfer
or reissuance, at which time such Non Book-Entry Capital Security Certificates will be canceled and a Debenture, registered in the name of the holder of the Capital Security Certificate or the transferee of the holder of such Capital Security
Certificate, as the case may be, with an aggregate principal amount equal to the aggregate liquidation amount of the Capital Security Certificate canceled, will be executed by the Company and delivered to the Trustee for authentication and delivery
in accordance with the Indenture and this First Supplemental Indenture. Any Debentures exchanged for Capital Securities represented by a Capital Securities Certificate bearing the legend set forth in Section 5.4 of the Declaration shall bear
such legend and the last paragraph of such Section 5.4 shall apply, mutatis mutandis, to such Debentures. On issue of such Debentures, Debentures with an equivalent aggregate principal amount that were presented by the Property Trustee
to the Trustee will be deemed to have been canceled. 


 (b) A Global Debenture may be transferred, in whole but not in
part, only by the Depositary to another nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary, or to a successor Depositary selected or approved by the Company or to a nominee of such
successor Depositary. The Depositary shall initially be The Depository Trust Company, New York, New York. 
 (c) Except as otherwise provided
in or pursuant to this First Supplemental Indenture, a Global Debenture shall be exchangeable for Debentures in definitive registered form only if (i) the Depositary notifies the Company that it is unwilling or unable to continue as Depositary
and a successor Depositary is not appointed by the Company within 90 days of the date the Company is so informed in writing or becomes aware of such condition, (ii) the Depository ceases to be registered as a “clearing agency” under
the Securities Exchange Act of 1934, as amended, (iii) an Event of Default, as defined in the Indenture, has occurred and is continuing with respect to the Debentures, or (iv) the Company, in its sole discretion determines that the
Debentures shall no longer be represented by such Global Debenture. Upon the occurrence of any of (i) through (iv) above, the Company shall execute, and, subject to Article II of the Indenture, the Trustee, upon written notice from the
Company, shall authenticate and deliver the Debentures in definitive registered form without coupons, in authorized denominations, and in an aggregate principal amount equal to the principal amount of the Global Debenture in exchange for such Global
Debenture. In the event the Company determines that the Debentures shall no longer be represented by a Global Debenture pursuant to clause (iv) above, the Company shall execute, and, subject to Section 3.05 of the Indenture, the Trustee,
upon receipt of an Officers’ Certificate evidencing such determination by the Company, shall authenticate and deliver the Debentures in definitive registered form without coupons, in authorized denominations, and in an aggregate principal
amount equal to the principal amount of the Global Debenture in exchange for such Global Debenture. Upon the exchange of the Global Debenture for such Debentures in definitive registered form without coupons, in authorized denominations, the Global
Debenture shall be canceled by the Trustee. Such Debentures in definitive registered form issued in exchange for the Global Debenture shall be registered in such names and in such authorized denominations as the Depositary, pursuant to instructions
from its direct or indirect participants or otherwise, shall instruct the Trustee. The Trustee shall deliver such Debt Securities to the Depositary for delivery to the Persons in whose names such Debt Securities are so registered. 
  

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 Section 2.5 Interest. 
 (a) Each Debenture will bear interest at a rate of (A) 5.00% per annum for the period from and including August 24, 2009 to but
excluding December 5, 2013 and (B) 9.00% per annum thereafter (the “Coupon Rate”) until the principal thereof is paid or made available for payment, and to the extent that payment of such interest is enforceable
under applicable law, on any overdue installment of interest at the applicable Coupon Rate, compounded quarterly, payable quarterly in arrears on each February 15, May 15, August 15 and November 15 (each, an
“Interest Payment Date”), commencing on November 15, 2009, to the Person in whose name such Debenture or any predecessor Debenture is registered at the close of business on the relevant record date, which will be, as long as
the Capital Securities are in book-entry form (or if no Capital Securities remain outstanding, as long as the Debentures remain in book-entry form), one Business Day prior to the relevant Interest Payment Date and, in the event the Capital
Securities are not in book-entry form (or if no Capital Securities remain outstanding, in the event the Debentures are not in book-entry form), the last day of the month next preceding each Interest Payment Date, except as otherwise provided
pursuant to the provisions of Article IV. 
 (b) The amount of interest payable for any period less than a full quarterly interest period
shall be computed on the basis of a 360-day year of twelve 30-day months and the actual days elapsed in a partial month in such period. The amount of interest payable for any full quarterly interest period shall be computed by dividing the
applicable rate per annum by four. In the event that any date on which interest is payable on the Debentures is not a Business Day, then payment of interest payable on such date will be made on the next succeeding day which is a Business Day
(and without any interest or other payment in respect of any such delay). 
 Section 2.6 Forms of Declaration and Guarantee Agreement.

 The Declaration shall be substantially in the form set forth in Exhibit B and the Guarantee Agreement shall be substantially in the
form set forth in Exhibit C. 
 Section 2.7 Events of Default 
 The Event of Default described in Section 5.01(4) of the Indenture shall not apply to the Debentures. 
 ARTICLE III 
 REDEMPTION
OF THE DEBENTURES 
 Section 3.1 Optional Redemption. 
 The Debentures are redeemable at the option of the Company at any time (including upon the occurrence and during the continuation of any Special
Redemption Event), subject to the approval of the Appropriate Federal Banking Agency, at a redemption price (the “Redemption Price”) equal to 100% of the principal amount thereof, plus accrued and unpaid interest thereon (including
Compound Interest, if any) to the date of redemption. 
  

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 Section 3.2 Redemption Procedures. 
 Notice of any redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each Holder of Debentures to be prepaid
at its registered address. Unless the Company defaults in payment of the Redemption Price, on and after the redemption date interest shall cease to accrue on such Debentures called for redemption. If the Debentures are only partially redeemed
pursuant to Section 3.1, the Debentures will be redeemed pro rata or by lot or by any other method utilized by the Trustee; provided that if at the time of redemption the Debentures are registered as a Global Debenture, the
Depositary shall determine, in accordance with its procedures, the principal amount of such Debentures held by each Depositary participant to be redeemed. The Redemption Price shall be paid prior to 12:00 noon, New York time, on the date of such
redemption or at such earlier time as the Company determines; provided that the Company shall deposit with the Trustee an amount sufficient to pay the Redemption Price by 10:00 a.m., New York time, on the date such Redemption Price is to be
paid. 
 Section 3.3 No Sinking Fund. 
 The Debentures are not entitled to the benefit of any sinking fund. 
 ARTICLE IV 
 EXTENSION OF INTEREST PAYMENT PERIOD 
 This Article IV and the provisions set forth in the form of Debenture, but not the provisions of Section 3.13 of the Indenture, shall apply to the
deferral of interest on the Debentures: 
 Section 4.1 Extension of Interest Payment Period. 
 Provided that no Event of Default has occurred and is continuing, the Company shall have the right, at any time and from time to time during the term of
the Debentures, to defer payments of interest by extending the interest payment period of such Debentures for a period not exceeding 20 consecutive quarterly periods (the “Extended Interest Payment Period”), during which Extended
Interest Payment Period no interest shall be due and payable. To the extent permitted by applicable law, interest, the payment of which has been deferred because of the extension of the interest payment period pursuant to this Section 4.1, will
bear interest thereon at the Coupon Rate compounded quarterly for each quarter of the Extended Interest Payment Period (“Compound Interest”). At the end of the Extended Interest Payment Period, the Company shall pay all interest
accrued and unpaid on the Debentures, including any Compound Interest (together, “Deferred Interest”) that shall be payable to the Holders in whose names the Debentures are registered in the Security Register on the record date for
the first Interest Payment Date after the end of the Extended Interest Payment Period. Before the termination of any Extended Interest Payment Period, the Company may further extend such period, provided that such period together with all
such previous or further extensions thereof shall not exceed 20 consecutive quarterly periods. Upon the termination of any Extended Interest Payment Period and upon the payment of all Deferred Interest then due, the Company may commence a new
Extended Interest Payment Period, subject to the foregoing requirements. No interest shall be due and payable during an Extended Interest Payment Period, except at the end thereof, but the Company may prepay at any time all or any portion of the
interest accrued during an Extended Interest Payment Period. 
  

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 Section 4.2 Notice of Extension. 
 (a) If the Property Trustee is the only registered Holder at the time the Company selects an Extended Interest Payment Period, the Company shall give
written notice to the Property Trustee and the Trustee of its selection of such Extended Interest Payment Period one Business Day before the earlier of (i) the next succeeding date on which Distributions on the Trust Securities issued by the
Trust are payable, or (ii) if the Debentures are then listed on the Nasdaq National Market or other national securities exchange, the date the Company is required to give notice of the record date, or the date such Distributions are payable to
such organization or to holders of the Capital Securities issued by the Trust. 
 (b) If the Property Trustee is not the only Holder at the
time the Company selects an Extended Interest Payment Period, the Company shall give the Holders of the Debentures notice of its election of such Extended Interest Payment Period not later than the tenth Business Day prior to the next succeeding
Interest Payment Date; provided that if the Debentures are then listed on the Nasdaq National Market or other national securities exchange and the Company is required to give notice of the record date or the Interest Payment Date to such
organization or to Holders of the Debentures prior to such date, the Company shall give notice of its election at least one Business Day prior to the date it is required to give such notice of the record date. 
 (c) The quarterly period in which any notice is given pursuant to paragraphs (a) or (b) of this Section 4.2 shall be counted as one of the
20 quarterly periods permitted in the maximum Extended Interest Payment Period permitted under Section 4.1. 
 Section 4.3 Limitation
of Transactions. 
 If the Company shall exercise its right to defer payment of interest as provided in Section 4.1 and the Extended
Interest Payment Period is continuing, the Company shall be subject to the limitations set forth in Section 10.08 of the Indenture. 
 ARTICLE V 
 EXPENSES 
 Section 5.1 Payment of Expenses. 
 In connection with the offering, sale and issuance of the
Debentures to the Property Trustee and in connection with the sale of the Trust Securities by the Trust (including the exchange of the Capital Securities for the Series C Preferred Stock), the Company, in its capacity as borrower with respect to the
Debentures, shall: 
 (a) pay all costs and expenses relating to the offering, sale and issuance of the Trust Securities and the Debentures,
including any exchange fees payable pursuant to the Exchange Agreement and compensation of the Trustee under the Indenture in accordance with the provisions of Section 6.07 of the Indenture; 
 (b) be responsible for and shall pay all debts and obligations (other than with respect to the Trust Securities) and all costs and expenses of the Trust
(including, but not limited to, costs and expenses relating to the organization, maintenance and dissolution of the Trust, the fees and expenses (including reasonable counsel fees and expenses) of the Property Trustee, the Delaware Trustee and the
Administrative Trustees (including any amounts payable under Article VIII of the Declaration), the costs and expenses relating to the operation of the Trust, including without limitation, costs and expenses of 

  

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accountants, attorneys, statistical or bookkeeping services, expenses for printing and engraving and computing or accounting equipment, paying agent(s),
exchange rate agent(s), registrar(s), transfer agent(s), duplicating, travel and telephone and other telecommunications expenses and costs and expenses incurred in connection with the acquisition, financing, and disposition of Trust assets and the
enforcement by the Property Trustee of the rights of the holders of the Capital Securities issued by the Trust); 
 (c) be liable for any
indemnification obligations arising with respect to the Declaration; and 
 (d) pay any and all taxes (other than United States and Puerto
Rico withholding taxes attributable to the Trust or its assets) and all liabilities, costs and expenses with respect to such taxes of the Trust. 
 The Company’s obligations under this Section 5.1 shall be for the benefit of, and shall be enforceable by, any Person to whom such debts, obligations, costs, expenses and taxes are owed (a “Creditor”) whether or
not such Creditor has received notice hereof. Any such Creditor may enforce the Company’s obligations under this Section 5.1 directly against the Company and the Company irrevocably waives any right of remedy to require that any such
Creditor take any action against the Trust or any other Person before proceeding against the Company. The Company agrees to execute such additional agreements as may be necessary or desirable in order to give full effect to the provisions of this
Section 5.1. 
 The provisions of this Section shall survive the resignation or removal of the Trustee and the satisfaction and
discharge of this Supplemental Indenture. 
 Section 5.2 Payment Upon Resignation or Removal. 
 Upon termination of this First Supplemental Indenture or the Indenture or the removal or resignation of the Trustee, unless otherwise stated, the Company
shall pay to the Trustee all amounts accrued to the date of such termination, removal or resignation that are payable pursuant to Section 6.07 of the Indenture. Upon termination of the Declaration or the removal or resignation of the Delaware
Trustee or the Property Trustee, as the case may be, pursuant to Section 8.10 of the Declaration, the Company shall pay to the Delaware Trustee or the Property Trustee, as the case may be, all amounts accrued to the date of such termination,
removal or resignation. 
 ARTICLE VI 
 COVENANT TO LIST ON EXCHANGE 
 Section 6.1 Listing on
an Exchange. 
 If the Debentures are distributed to the holders of the Trust Securities issued by the Trust, and the Capital Securities
are then so listed, the Company will use its commercially reasonable efforts to list such Debentures on the Nasdaq National Market or with another organization on which the Capital Securities of the Trust are then listed. 
  

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 ARTICLE VII 
 FORM OF DEBENTURE 
 Section 7.1 Form of Debenture.

 The Debentures, and the Trustee’s Certificate of Authentication to be endorsed thereon, are to be substantially in the forms
attached hereto as Exhibit A. 
 ARTICLE VIII 
 ORIGINAL ISSUE OF DEBENTURES 
 Section 8.1
Original Issue of Debentures. 
 Debentures in the aggregate principal amount of $936,000,000, may, upon execution of this First
Supplemental Indenture or upon any written order of the Company setting forth the amount therefor, be executed by the Company and delivered to the Trustee for authentication, and the Trustee shall thereupon authenticate and deliver said Debentures
to or upon the written order of the Company, signed by its Chairman of the Board, its President, any Senior Executive Vice President, any Executive Vice President or any Senior Vice President and its Secretary or any Assistant Secretary, without any
further action by the Company. 
 ARTICLE IX 
 MISCELLANEOUS 
 Section 9.1 Ratification of Indenture. 
 The Indenture, as supplemented by this First Supplemental Indenture, is in all respects ratified and confirmed, and this First Supplemental Indenture
shall be deemed part of the Indenture in the manner and to the extent herein and therein provided. 
 Section 9.2 Trustee Not Responsible
for Recitals. 
 The recitals herein contained are made by the Company and not by the Trustee, and the Trustee assumes no responsibility
for the correctness thereof. The Trustee makes no representation as to the validity or sufficiency of this First Supplemental Indenture. 
 Section 9.3 Governing Law. 
 This First Supplemental Indenture and each Debenture shall be deemed to be a contract made
under the internal laws of the State of New York, and for all purposes shall be construed in accordance with the laws of such State without regard to conflicts of laws principles. 
 Section 9.4 Separability. 
 In case
any one or more of the provisions contained in this First Supplemental Indenture or in the Debentures shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not
affect any other provisions of this First Supplemental Indenture or of the Debentures, but this First Supplemental Indenture and the Debentures shall be construed as if such invalid or illegal or unenforceable provision had never been contained
herein or therein. 
  

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 Section 9.5 Counterparts. 
 This First Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together
constitute but one and the same instrument. 
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 IN WITNESS WHEREOF, the parties hereto
have caused this First Supplemental Indenture to be duly executed by their respective officers thereunto duly authorized as of the day and year first above written. 
  

			
	POPULAR, INC.
		
	By:	 	 /s/ Jorge A. Junquera

	Name:	 	Jorge A. Junquera
	Title:	 	Senior Executive Vice President & Chief Financial Officer
	
	THE BANK OF NEW YORK MELLON,
	as Trustee
		
	By:	 	 /s/ Catherine F. Donohue

		 	Authorized Signature


  

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 EXHIBIT A 
 (FORM OF FACE OF DEBENTURE) 
 The following legend applies if this Security is a Global Security:
Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Issuer or its agent for registration of transfer, exchange or payment, and any certificate issued
is registered in the name of Cede & Co. or in such other name as requested by an authorized representative of DTC (and any payment is made to Cede & Co. or such other entity as is requested by an authorized representative of DTC),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 
 This Security is not a deposit or other obligation of a depository institution and is not insured by the Federal Deposit Insurance Corporation, the Bank
Insurance Fund or any other governmental agency. 
  

			
	CUSIP NO.
                            	  	PRINCIPAL AMOUNT: $
	REGISTERED NO.	  	

 POPULAR, INC. 
 Fixed Rate Perpetual Junior Subordinated Debentures, Series A 
 POPULAR, INC., a corporation duly organized
and existing under the laws of the Commonwealth of Puerto Rico (hereinafter called the “Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to
                    , or registered assigns, interest on the principal sum of
                     Dollars
($                    ) from August 24, 2009 or from the most recent Interest Payment Date to which interest has been paid or duly provided for
quarterly (subject to deferral as set forth herein) on February 15, May 15, August 15 and November 15 of each year commencing November 15, 2009, at a rate of (A) 5.00% per annum for the period from and
including August 24, 2009 to but excluding December 5, 2013 and (B) 9.00% per annum thereafter (the “Coupon Rate”), together with Additional Sums, if any, as provided in Section 10.07 of the
Indenture, until the principal hereof is paid or made available for payment; provided, however, that any overdue installment of interest (after giving effect to any Extension Period permitted by this Security) shall bear Additional Interest
at the Coupon Rate (to the extent that the payment of such interest shall be legally enforceable), compounded quarterly, from the date such installment was due until it is paid or made available for payment. The amount of interest payable for any
period less than a full quarterly interest period shall be computed on the basis of a 360-day year of twelve 30-day months and the actual days elapsed in a partial month in such period. The amount of interest payable for any full quarterly interest
period shall be computed by dividing the applicable rate per annum by four. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the last calendar day (whether or not a Business Day, as defined below) of the month next
preceding such Interest Payment Date. If an Interest Payment Date is not a Business Day, interest on this Security shall be payable on the next day that is a Business Day, with the same force and effect as if made on such Interest Payment Date, and
without any interest or other payment with respect to the delay. “Business Day” as used hereinabove is a day other than a Saturday, a Sunday or any other day on which banking institutions in San Juan, Puerto Rico, Wilmington,
Delaware or New York, New York are authorized or required by law, regulation or executive order to remain closed or are customarily closed. 
  
  
  







 Any interest not punctually paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed
by the Trustee, notice whereof shall be given to Holders of Securities of this series not more than 15 days and not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. 
 So long as no Event of Default has occurred and is continuing, the Company shall have the right, at any time during the term of this Security, from time
to time to defer the payment of interest on this Security for up to 20 consecutive quarterly interest payment periods with respect to each deferral period (each an “Extension Period”), during which Extension Period the Company shall
have the right to make a partial payment of interest on any Interest Payment Date, at the end of which the Company shall pay all interest then accrued and unpaid including any Additional Interest, as provided below; provided, however, that no
Extension Period may end other than at the end of a full quarterly interest period; and provided, further, however, that during any such Extension Period, the Company shall not (i) make any payment of principal of or interest or premium,
if any, on or repay, repurchase or redeem any debt securities of the Company that rank pari passu in all respects with or junior in interest to this Security (except for any partial payments of interest with respect to and permitted under the
Securities of this series), or (ii) declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any of the Company’s capital stock (other than (a) repurchases,
redemptions or other acquisitions of shares of capital stock of the Company in connection with any employment contract, benefit plan or other similar arrangement with or for the benefit of any one or more employees, officers, directors, consultants
or independent contractors, in connection with a dividend reinvestment or stockholder stock purchase plan or in connection with the issuance of capital stock of the Company (or securities convertible into or exercisable for such capital stock) as
consideration in an acquisition transaction entered into prior to the applicable Extension Period, (b) as a result of an exchange, redemption or conversion of any class or series of the Company’s capital stock (or any capital stock of a
subsidiary of the Company) for any other class or series of the Company’s capital stock or of any class or series of the Company’s indebtedness for any class or series of the Company’s capital stock, (c) the purchase of
fractional interests in shares of the Company’s capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged, (d) any declaration of a dividend in connection with any
Rights Plan, or the issuance of rights, stock or other property under any Rights Plan, or the redemption or repurchase of rights pursuant thereto, (e) payments by the Company under the Guarantee Agreement, or (f) any dividend in the form
of stock, warrants, options or other rights where the dividend stock or the stock issuable upon exercise of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks pari passu with or
junior to such stock). Prior to the termination of any such Extension Period, the Company may extend such Extension Period and further defer the payment of interest, provided that no Extension Period shall exceed 20 consecutive quarterly
interest payment periods or end other than at the end of a full quarterly interest period. Upon the termination of any such Extension Period and upon the payment of all accrued and unpaid interest and any Additional Interest then due on any Interest
Payment Date, the Company may elect to begin a new Extension Period, subject to the above conditions. No interest or Additional Interest shall be due and payable during an Extension Period, except at the end thereof, but each installment of interest
that would otherwise have been due and payable during such Extension Period shall bear Additional Interest (to the extent that the payment of such interest shall be legally enforceable) at the Coupon Rate, compounded quarterly and calculated as set
forth in the first paragraph of this Security, from the dates on which amounts would otherwise have been due and payable until paid or made available for payment. The Company shall give the Holder of this Security and the Trustee notice of its
election to begin any Extension Period at least one Business Day prior to the next succeeding 

  

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Interest Payment Date on which interest on this Security would be payable but for such deferral or, so long as such Securities are held by or on behalf of
Popular Capital Trust III, at least one Business Day prior to the earlier of (i) the next succeeding date on which Distributions on the Capital Securities of such Issuer Trust would be payable but for such deferral, and (ii) the date
on which the Property Trustee of such Issuer Trust is required to give notice to holders of such Capital Securities of the record date or the date such Distributions are payable. 
 Payment of interest, including Additional Interest, on this Security will be made in immediately available funds at the office or agency of the Company
maintained for that purpose in the City of San Juan, Puerto Rico, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that, at the
option of the Company, payment of interest may be paid by check mailed to the Person entitled thereto at such Person’s last address as it appears in the Security Register or, upon written request of a Holder of $1,000,000 or more in aggregate
principal amount of Securities of this series not less than 15 calendar days prior to the applicable Interest Payment Date, by wire transfer to such account as may have been designated by such Person. Payment of principal of and interest, including
Additional Interest, on this Security upon its redemption will be made against presentation of this Security at the office or agency of the Company maintained for that purpose in the City of San Juan, Puerto Rico. 
 Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have
the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed by the Trustee referred
to on the reverse hereof by manual signature or its duly authorized agent under the Indenture referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for
any purpose. 
 IN WITNESS WHEREOF, the Company has caused this instrument
to be duly executed under its corporate seal. 
 DATED: 
  

			
	POPULAR, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	


 [SEAL] 
  

			
	Attest:	 	  

		 	Secretary

  

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 TRUSTEE’S CERTIFICATE 
 OF AUTHENTICATION 
 This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture. 
 Dated:
                     
  

			
	THE BANK OF NEW YORK MELLON,
	as Trustee
		
	By:	 	  

		 	Authorized Signature
	
	OR


  

			
	  
	 	, as



			
	Authenticating Agent for the Trustee
		
	By:	 	  

		 	Authorized Signature


 [Reverse of Debenture] 
 POPULAR, INC. 
 FIXED RATE JUNIOR SUBORDINATED DEBENTURES, SERIES A

 This Security is one of a duly authorized issue of junior subordinated securities of the Company (herein called the
“Securities”), issued and to be issued in one or more series under an indenture dated as of August 24, 2009, as amended or supplemented from time to time (herein called the “Indenture”), between the Company and
The Bank of New York Mellon (herein called the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is
one of the series designated on the face hereof, limited in aggregate principal amount to $936,000,000. All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture unless otherwise
defined in this Security. 
 The Securities are redeemable at the option of the Company at any time (including upon the occurrence and during
the continuation of any Special Redemption Event), subject to the approval of the Appropriate Federal Banking Agency, at a redemption price (the “Redemption Price”) equal to 100% of the principal amount thereof, plus accrued and
unpaid interest thereon (including Compound Interest, if any) to the date of redemption. 
  

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 The Securities of this series are not subject to repayment at the option of the Holder hereof. The
Securities of this series will not be entitled to any sinking fund. 
 The indebtedness evidenced by the Securities of this series is, to the
extent and in the manner set forth in the Indenture, subordinate and subject in right of payment to the prior payment in full of the principal of and premium, if any, and interest on all Senior Debt of the Company, and each Holder of the Securities
of this series, by accepting the same, agrees to and shall be bound by the provisions of the Indenture with respect hereto. The Securities of this series shall rank on a parity with all Trust Related Securities, including without limitation the
Guarantee Agreement related to the Fixed Rate Capital Securities of Popular Capital Trust III. 
 If an Event of Default, as defined in
the Indenture, with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time
Outstanding of all series to be affected, acting together. The Indenture also contains provisions permitting the Holders of a majority in principal amount of the Securities of all series at the time Outstanding affected by certain provisions of the
Indenture, acting together, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with those provisions of the Indenture. Certain past defaults under the Indenture and their consequences may be waived under
the Indenture by the Holders of a majority in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series. All of the rights of the Holders set forth in this paragraph are
subject to the rights of the holders of Capital Securities as set forth in the Indenture. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of
any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 
 The provisions contained in Sections 4.01 and 4.03 and Article Seventeen of the Indenture for defeasance of the entire indebtedness on this Security and
certain restrictive covenants and certain Events of Default do not apply to this Security. 
 Upon due presentment for registration of
transfer of this Security at the office or agency of the Company in the City of San Juan, Puerto Rico, a new Security or Securities of this series in authorized denominations of $1,000 or integral multiples thereof for an equal aggregate principal
amount will be issued to the transferee in exchange herefor, as provided in the Indenture and subject to the limitations provided therein and to the limitations described below, without charge except for any tax or other governmental charge imposed
in connection therewith. 
 If this Security is a Global Security, this Security is exchangeable for definitive Securities in registered form
only if (x) the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as
amended, and a successor depositary is not appointed within 90 days, (y) the Company in its sole discretion determines that this Security shall no longer be represented by Global Securities, or (z) an Event of Default with respect to the
Securities represented hereby has occurred and is continuing. If this Security is exchangeable pursuant to the preceding sentence, it shall be exchangeable for definitive Securities in registered form, bearing interest, including 

  

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Additional Interest, at the same rate, having the same date of issuance, redemption provisions and other terms and of authorized denominations aggregating a
like amount. 
 If this Security is a Global Security, this Security may not be transferred except as a whole by the Depositary to a nominee
of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary or a nominee of such successor. Except as provided above, owners of
beneficial interests in this global Security will not be entitled to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under the Indenture. 
 Subject to the rights of holders of Senior Debt of the Company set forth in this Security and the indenture referred to above, no reference herein to the
Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest, including any Additional Interest, on this Security at
the times, place and rate, and in the coin or currency, herein prescribed, except as otherwise provided in this Security. 
 Prior to due
presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this
Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
 No recourse
shall be had for the payment of the principal of or the interest, including Additional Interest, on this Security, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture
supplemental thereto, against any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of
any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived and released. 
  

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 ABBREVIATIONS 
 The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations: 
  

					
	TEN COM	 	—	  	as tenants in common
			
	TEN ENT	 	—	  	as tenants by the entireties
			
	JT TEN	 	—	  	as joint tenants with right of survivorship and not as tenants in common

  

											
	UNIF GIFT MIN ACT	 	—	 	  
	 	Custodian	 	  
	 	

                                         
                    (Cust)                    
                                        (Minor)

  

	
	Under Uniform Gifts to Minors Act
	  
	(State)

 Additional abbreviations may also be used though not in the above list. 
 FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto 
 Please Insert Social Security or 
 Other Identifying Number of Assignee 
  

					
	  
	  		  	
	  
	  	
	  
	  	

 (Please print or type name and address including postal zip code of Assignee) 
 the within Security of POPULAR, INC. and does hereby irrevocably constitute and appoint
                     attorney to transfer the said Security on the books of the Company, with full power of substitution in the premises. 

 

							
	Dated:	 	  
	  		  	
	  
	  		  	
	  
	  		  	

 NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within
instrument in every particular, without alteration or enlargement or any change whatever. 
  

 A-7