Document:

exv4w1

Exhibit 4.1

	Stock Certificate CUSIP: 141617 1 00

 

 

     The Corporation will furnish to any shareholder, upon request and without charge, a
full statement of the designations, preferences, limitations and relative rights of the
Shares of each Class or Series authorized to be issued, so far as they have been determined,
and the authority of the board to determine the relative rights and preferences of
subsequent Classes or Series.

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

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TEN COM

	 	—
	 	as tenants in commn
	 	 
	 	UNIF GIFT MIN ACT —
	 	 	 	 	 	Custodian	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TEN ENT	 	—	 	as tenants by the entireties	 	 	 	 	 	(Cust)
	 	 	 	(Minor)
	JT TEN	 	—	 	as joint tenants with right of survivorship and not as tenants in common	 	 	 	 	 	under Uniform Transfers to Minors
	 

	 	 	 	 	 	 	 	 	 	Act	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(State)

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	UNIF GIFT MIN ACT —	 	 	 	 	 	Custodian (until age          )
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	(Cust)
	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	under Uniform Transfers
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	to Minors Act	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(State)

Additional abbreviations may also be used though not in the above list.

For value received       hereby sell, assign and transfer unto

	 	 	 	 	 
	 	PLEASE INSERT SOCIAL SECURITY OR OTHER
	 	 	 

	 	IDENTIFYING NUMBER OF ASSIGNEE
	 	 	 

	 	 	 	 	 
	 	 
	 	 	 

	 	 
	 	 	 

	 	 	 	 	 
	 	 
	 	 	 

 

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE

 

 

 

 

	 	 	 
	 

	 	Shares
	 	 	 

of the capital stock represented by the within Certificate, and do hereby
irrevocably constitute and appoint                                                                         

	 	 	 
	 

	 	Attorney
	 	 	 

to transfer the said stock on the books of the
within-named Corporation with full power of substitution in the premises.

	 	 	 
	Dated

	 	 
	 	 	 
	 
	 	 
	 
	 	 
	 	 	 
	NOTICE:

	 	THE SIGNATURE(S) TO THE ASSIGNMENT MUST CORRESPOND WITH THE NAME(S)
AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR,
WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.
	 
	 	 
	SIGNATURE(S) GUARANTEED
	 	 

	 	 	 	 	 
	 

	 	 
	 	 
	 	 	 	 	 
	By:exv10w23

Exhibit 10.23

CARDIOVASCULAR SYSTEMS, INC.

SUMMARY OF CALENDAR 2008

EXECUTIVE OFFICER ANNUAL CASH INCENTIVE COMPENSATION

For calendar 2008, our executive officers are eligible to receive annual cash incentive
compensation with target bonus levels ranging from 20% to 50% of their yearly base salary.
Participants are eligible to earn 50% to 150% of their target bonus amount depending upon the
company’s performance relative to the bonus plan criteria; however, in the event of extraordinary revenue performance above the goals set by the board,
all of the named executive officers would receive incentive payments greater than 150% of their
targets based upon a formula established by the board, with no maximum payout set under the plan. The annual cash incentive plan is
designed to reward the executive officers for achieving and
surpassing revenue and gross margin financial goals set by the compensation committee and board of directors.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Name	 	Target
% 

of Base 

Salary	 	Threshold Bonus	 	Target Bonus	 	Maximum
Bonus(1)
	David L. Martin
	 	 	50	%	 	$	98,750	 	 	$	197,500	 	$	296,250	 
	President, Chief Executive Officer and
Director
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Laurence L.
Betterley(2)
	 	 	40	%	 	$	45,000	 	 	$	90,000	 	$	135,000
	Chief Financial Officer
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	James E. Flaherty
	 	 	40	%	 	$	43,600	 	 	$	87,200	 	$	130,800	 
	Chief Administrative Officer
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Robert J. Thatcher
	 	 	40	%	 	$	43,600	 	 	$	87,200	 	$	130,800	 
	Executive Vice President
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Paul Koehn
	 	 	40	%	 	$	35,310	 	 	$	70,620	 	$	105,930	 
	Vice President of Manufacturing
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Brian Doughty
	 	 	20	%	 	$	19,260	 	 	$	38,520	 	$	57,780	 
	Vice President of Marketing
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Paul Tyska(3)
	 	 	40	%	 	$	40,000	 	 	$	80,000	 	$	120,000	 
	Vice President of Business Development
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Michael J. Kallok, Ph.D.
	 	 	40	%	 	$	51,000	 	 	$	102,000	 	$	153,000	 
	Chief Scientific Officer and Director
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	John
Borrell(4)
	 	 	40	%	 	$	40,000	 	 	$	80,000	 	$	120,000	 
	Vice President of Sales
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	

	(1)	 	As described above, participants may earn greater than 150% of their target bonus amount in
the event of extraordinary revenue performance, with no maximum payout set under the plan.
	 
	(2)	 	Mr. Betterley’s actual bonus will be adjusted proportionally to reflect his start date of April 14, 2008.
	 
	(3)	 	Mr. Tyska will also be paid sales commissions of 0.333% of all sales on a monthly basis.
	 
	(4)	 	Mr. Borrell will also be paid sales commissions of 0.666% of all sales on a monthly basis.EX-4.5 NONQUALIFIED DEFERRED COMPENSATION PLAN

Exhibit 4.5

 

POPULAR, INC. PUERTO RICO

NONQUALIFIED DEFERRED COMPENSATION PLAN

 

Effective August 1, 2008

THIS DOCUMENT CONSTITUTES PART OF A

PROSPECTUS COVERING SECURITIES THAT HAVE BEEN

REGISTERED UNDER THE SECURITEIS ACT OF 1933, AS AMENDED.

1

 

INTRODUCTION

     Popular, Inc. (“Popular”) hereby establishes the Popular, Inc. Puerto Rico Nonqualified
Deferred Compensation Plan (the “Plan”), as set forth herein, effective as of August 1, 2008. The
purpose of the Plan is to allow certain employees of Popular and its affiliates to defer receipt of
a portion of their compensation in excess of the amounts allowed to be deferred under the Popular,
Inc. Puerto Rico Savings and Investment Plan and to provide for payment of discretionary deferred
compensation to certain employees of Popular and its affiliates, or a death benefit for their
beneficiaries.

     The Plan is an unfunded plan of deferred compensation for a select group of management or
highly compensated employees of Popular and its affiliates intended to be exempt from the
provisions of Parts 2, 3 and 4 Title I, Subtitle B of the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”). The Plan is not intended to be a tax qualified retirement plan
under Section 1165 of the Puerto Rico Internal Revenue Code of 1994, as amended.

ARTICLE I. DEFINITIONS

     As used herein, the following words and phrases shall have the meaning indicated unless
otherwise defined or required by the context:

     “Account” shall mean a bookkeeping reserve account established in the books of Popular
reflecting the total amounts credited to a Participant under the Plan.

     “Active Participant” shall mean, with respect to any Plan Year, a Participant who is not an
Inactive Participant.

     “Administrator” shall mean the Popular, Inc. Puerto Rico Benefits Committee or such other
person(s) designated as such by the Board.

     “Beneficiary” shall mean the Participant’s successors, as determined in accordance with the
applicable laws related to legal conjugal partnership and descent and distribution of the
Commonwealth of Puerto Rico or any other applicable jurisdiction.

     “Board” shall mean the Board of Directors of Popular.

     “Cause” shall mean any of the following:

          (i) the willful dereliction by the Participant of his duties to Popular and its affiliates,

          (ii) any dishonest, fraudulent or criminal act on the part of the Participant that either
occurs in connection with his performance of services to Popular or its affiliates or

2

 

adversely
affects the reputation of Popular and its affiliates or

          (iii) the willful failure of the Participant to comply with the lawful directives of the
Board, the Board of Directors of his Employer or of any other employee of Popular or its affiliates
who has supervisory authority with respect to the Participant.

     “Change of Control” shall be deemed to have occurred if:

          (i) any “person”, including a “group” (as determined in accordance with Section 13(d)(3) of
the Securities Exchange Act of 1934), becomes the owner after the Effective Date, directly or
indirectly by purchase, merger, exchange offer, tender offer, or other business combination of
voting securities of Popular representing fifty percent (50%) or more of the then outstanding
voting securities of Popular; or

          (ii) Popular transfers substantially all of its assets to another person which is not a wholly
owned subsidiary or parent of Popular.

     “CIC” shall mean the Popular, Inc. Corporate Investment Committee or such other person(s)
designated by the Board to oversee the investments of the Trust.

     “Code” shall mean the Puerto Rico Internal Revenue Code of 1994, as amended from time to time.

     “Compensation” shall mean the annual base salary, cash incentives or commissions, cash
bonuses, Christmas bonus, and profit sharing amounts earned by a Participant from the Employer. It
shall not include Employer contributions or credits under this or any other tax qualified or
nonqualified plan and payments under long-term incentive plans.

     “Deed of Trust” shall mean the deed pursuant to which Popular declared or constituted the
Trust, pursuant to Article VII.

     “Deferral Amount” shall mean the Participant Deferral Amount and the Employer Deferral Amount.

     “Disability” shall mean a physical or mental condition resulting from bodily injury, disease
or mental disorder which renders the Participant incapable of continuing employment with the
Employer and qualifies the Participant for long-term disability income benefits under the
Employer’s long-term disability plan, as determined by the insurer or administrator of that
long-term disability plan. If a Participant is not covered by the Employer’s long-term disability
plan, the Administrator will determine if the Participant’s condition renders him incapable of
continuing employment with the Employer.

     “Effective Date” of the Plan shall mean August 1, 2008.

3

 

     “Election Dates” shall mean the date or dates during a Plan Year selected by the
Administrator during which a Participant may elect to defer Compensation.

     “Eligible Employee” shall mean the Employee who meets the eligibility requirements of Section
2.01 of the Plan.

     “Employer” shall mean Popular and any of its affiliates in Puerto Rico that has adopted the
Plan.

     “Employer Deferral Amount” shall mean the total amount elected by an Employer to be credited
to the Account of a Participant under Section 3.02.

     “Financial Hardship” shall mean an event constituting a “financial hardship” under the terms
of the Popular, Inc. Puerto Rico Savings and Investment Plan, as determined by the Administrator.

     “Inactive Participant” shall mean a Participant who has a balance remaining in his Account and
who either has incurred in a termination of employment, or has suspended or ceased deferrals under
the Plan.

     “Investment Adjustment” shall mean an amount equal to the net increase or decrease in the fair
market value of an Account during a Plan Year or other period selected by the Administrator in
accordance with the earnings crediting options selected by the Participant from time to time,
exclusive of the effect of any Deferral Amount credited for such year or other period. Increases
and decreases shall include such items as realized or unrealized investment gains or losses,
investment income and, at the discretion of the Administrator, may include expenses of
administering the Trust and the Plan and income taxes paid by Popular on investment earnings of the
Trust. The rate of return, positive or negative, to be credited under each earnings crediting
option is based upon the actual performance of the investment funds or securities designated by the
CIC from time to time, including shares of stock of Popular, computed from the date on which the
Trustee makes the investment. Provided that the Trustee may invest the assets of the Trust in
short-term obligations before investing the assets in investment funds or securities designated by
the Participants.

     “Participant” shall mean an Eligible Employee who has become a Participant as provided under
Article II.

     “Participant Deferral Amount” shall mean the total amount of Compensation elected by a
Participant to be deferred under Section 3.01.

     ‘’Plan” shall mean the Popular, Inc. Puerto Rico Nonqualified Deferred Compensation Plan, as
contained herein and as amended from time to time.

4

 

     “Plan Year” shall mean the twelve month period beginning on January 1 and ending on December
31.

     “Popular” shall mean Popular, Inc., its successors and assignees.

     “Termination of Employment” shall mean the date on which a Participant ceases his employment
with the Employer for any reason. However, Termination of Employment shall not include the
transfer of employment between Employers.

     “Trust” shall mean the trust declared or constituted in connection with this Plan and all of
the assets that are held by the Trustee thereunder.

     “Trustee” shall mean Banco Popular de Puerto Rico or the party or parties designated as such
under the Deed of Trust.

     “Valuation Date” shall mean the date or dates during a Plan Year selected by the
Administrator. The last day of the Plan Year shall be the Annual Valuation Date.

ARTICLE II. ELIGIBILITY AND PARTICIPATION

     Section 2.01 Eligibility.

     Any employee of the Employer shall be eligible to participate in the Plan if (i) his annual
base salary from the Employer is at least $100,000 or (ii) his sales commissions earned from the
Employer during each of the last three years are at least $85,000. The aforementioned annual base
salary and commission amounts shall be revised every three years by the Administrator.
Notwithstanding the above, any employee of the Employer who is a member of the Corporate Leadership
Circle of Popular shall not be eligible to participate in the plan until such future date decided
by the Board.

The Administrator shall notify each Eligible Employee of his eligibility to participate in the
Plan.

     Section 2.02 Participation.

     An Eligible Employee shall become a Participant by electing to defer Compensation under the
Plan. An Eligible Employee who has not otherwise become a Participant shall become a Participant
as of the date determined by the Employer for purposes of receiving a credit of an Employer
Deferral Amount under Section 3.02.

5

 

ARTICLE III. DEFERRAL AMOUNTS

     Section 3.01 Participant Deferral Amounts.

     An Eligible Employee may elect to defer Compensation as provided in this Section.

          (a) A Participant may choose during the Election Dates to defer up to 80% of his Compensation.

          (b) A deferral election hereunder shall be irrevocable, except as provided in (c) below, and
shall be effective with respect to Compensation not yet earned by the Participant; provided,
however, that if a Participant is declared to be ineligible by the Administrator, any deferral
election then in effect with respect to such Participant shall be revoked automatically
effective with respect to Compensation earned after the Participant is declared ineligible.

          (c) At any time during the Plan Year, a Participant may revoke his deferral election. A
Participant who revokes a deferral election may elect to defer Compensation for any future calendar
year.

          (d) A deferral election hereunder shall be in effect until it is modified or revoked by the
Participant.

          (e) The Participant Deferral Amount shall be credited to the Participant’s Account as of the
date on which the Compensation subject to the deferral otherwise would have been paid.

     Section 3.02 Employer Deferral Amounts.

     Popular’s Executive Vice President for People and Communications in conjunction with another
Senior Executive Vice President or Executive Vice President of Popular, may elect to credit to the
Account of an Eligible Employee an Employer Deferral Amount, as determined in their discretion.

ARTICLE IV. ACCOUNTS

     Section 4.01 Accounts.

     The Administrator shall establish and maintain an Account in the name of each Participant, to
which the Administrator shall credit and debit Deferral Amounts, Investment Adjustments and
withdrawals from time to time in accordance with this Plan.

6

 

     Section 4.02 Investment Adjustment.

     As of each Valuation Date, the Administrator shall make an Investment Adjustment to the
Participant’s Account for the period since the preceding Valuation Date.

ARTICLE V. BENEFITS

     Section 5.01 General.

     Except as otherwise provided below, a Participant shall be entitled to payment of a benefit
equal to the value of his Account at Termination of Employment. A Participant shall be considered
fully vested in his Account at all times.

     Section 5.02 Distribution Events.

          (a) Death. In the event of the Termination of Employment of a Participant by reason of his
death, his Beneficiary thereupon shall be entitled to a benefit equal to the value of his Account.

          (b) Termination of Employment. In the event of a voluntary or involuntary Termination of
Employment of a Participant, he shall be entitled to a benefit equal to the value of his Account.

          (c) Disability. In the event of a Participant’s Disability, he shall be entitled to a benefit
equal to the value of his Account.

     Section 5.03 Withdrawals during Participant’s Service.

          (a) Financial Hardship Withdrawals. Notwithstanding any other provision of the Plan, if a
Participant suffers a Financial Hardship, he may apply to the Administrator for a distribution of
all or any portion of his Account prior to the time it would otherwise be payable under the Plan.
The amount of any Financial Hardship distribution shall be limited to the amount necessary to
relieve the Financial Hardship. The determination of whether a Participant has a Financial
Hardship and the amount which qualifies for distribution, if any, shall be made by the
Administrator at its sole discretion and notified to the Participant. The Administrator’s
determination shall be final, binding and conclusive. The Administrator may require evidence of
the purpose and amount of the need and may establish other procedures as it deems appropriate.

          (b) Post Secondary Education Withdrawals. Once per year, a Participant may apply to the
Administrator for a distribution of all or any portion of his Account prior to the time it would
otherwise be payable under the Plan, if the total amount of the distributions shall be used for the
payment of post secondary education (including room and board) of a

7

 

Participant’s child. The
Administrator may require evidence of the Participant’s child’s post secondary education expenses
and may establish certain procedures as it deems appropriate. The Administrator will only approve
distributions under this section 5.03(b) after Popular has received a favorable determination
letter from the Secretary of the Treasury of Puerto Rico or an opinion of counsel stating that a
Participant’s right to receive a distribution under this section 5.03(b) does not cause current
income taxation of the Account to the Participant.

ARTICLE VI. PAYMENT OF BENEFITS

     Section 6.01 Valuation of Benefits.

     The valuation of an Account with respect to any benefit hereunder shall be made as of the
Valuation Date coincident with or next preceding the date of distribution.

     Section 6.02 Conditions for Payment.

     Before payment of any benefit hereunder, the Administrator may require that the Participant,
Beneficiary or their legal representatives, as a condition precedent to such payment, execute a
receipt and release. The Administrator may offset payment of benefits under the Plan against any
outstanding and due debt of the Participant or Beneficiary to Popular or any of its affiliates,
including any debt arising from unauthorized, dishonest, fraudulent or illegal acts on the part of
the Participant in connection with the performance of Participant’s services to Popular or any of
its affiliates.

     Section 6.03 Time of Payment.

     Generally, benefits under the Plan shall be paid (or begin to be paid) as soon as reasonably
practicable following the Participant’s Termination of Employment, Death or Disability, but in no
event more than thirty (30) days following such time.

     Section 6.04 Form of Benefit Payment.

     Benefits under the Plan shall be paid in a single lump sum payable in cash and shares of
Popular’s stock, to the extent that the Participant elected an earnings crediting option consisting
of Popular stock. A Participant whose Termination of Employment occurs on or after age 55 and 10
or more years of employment with Popular and its affiliates for reasons other than Cause, may elect
the payment of benefits under the Plan in equal annual installments during a period of time not to
exceed 10 years in an amount equal to or greater than $12,000, as elected by the Participant,
payable in cash and shares of Popular’s stock in the same proportion that the Participant’s Account
invested in shares of Popular’s stock and other Plan investments bears to the total Account value.
The first annual installment shall be paid on the first quarter of the calendar year following the
termination of employment. A Participant may change his

8

 

distribution election at any time.
However, the applicable distribution election shall be the one in effect six months prior to the
Participant’s Termination of Employment.

     Upon the death of a Participant, benefits under the Plan shall be paid in a single cash lump
sum. As soon as reasonably possible after the Administrator becomes aware of a Participant’s
death, the Administrator shall deposit the amounts due under the Plan in the Participant’s savings
account with Banco Popular de Puerto Rico. If the Participant does not maintain a savings account
with Banco Popular de Puerto Rico, the amounts due under the Plan shall be deposited in a regular
savings account with Banco Popular de Puerto Rico in the name of the Participant for future payment
to the Participant’s Beneficiary. For purposes of this Section 6.04, Banco Popular de Puerto
Rico’s regular savings account is the Ahorro a Toda Hora or its equivalent.

     Section 6.05 Change of Control.

     Notwithstanding any other provisions of this Plan to the contrary, benefits payable under the
Plan shall be assumed by a successor entity in any case of a Change of Control.

ARTICLE VII. THE TRUST

     Section 7.01 Constitution of Trust.

     Popular will constitute the Trust as a source of funds to assist it in the meeting of its
liabilities under the Plan. The Trust shall be intended to be a “grantor trust,” of which Popular
is the grantor, within the meaning of Section 1167 of the Code. The principal of the Trust, and
any earnings thereon, shall be held separate and apart from other funds of Popular and shall be
used exclusively for the uses and purposes of Participants and Beneficiaries as general creditors
of Popular. Participants and Beneficiaries shall have no preferred claim to, or any beneficial
ownership interest in, any assets of the Trust. Any rights created under the Plan and the Trust
shall be mere unsecured contractual rights of Participants and Beneficiaries against Popular. Any
assets held by the Trust will be subject to the claims of Popular’s general creditors under federal
and state law in the event of Popular’s insolvency or bankruptcy.

     Section 7.02 Payments by Trustee.

     The Trustee shall pay the benefit attributable to the Account of each Participant at such time
and in such manner as provided under Articles V and VI, at the direction of the Administrator and
in accordance with the terms of the Deed of Trust, provided, however, payments by the Trustee shall
be made only to the extent of amounts which are deposited to the Trust and Investment Adjustments
with respect thereto. Payments by the Trustee hereunder shall satisfy in whole or in part, the
obligation of Popular to pay benefits under the Plan.

9

 

ARTICLE VIII. PLAN ADMINISTRATION

     Section 8.01 Authority of Administrator.

     The Administrator shall administer, construe and interpret the Plan, in its sole discretion.
The construction and interpretation of any provision of the Plan by the Administrator shall be
final and binding upon all persons.

     Section 8.02 Delegation.

     The Administrator may, in its sole discretion, delegate any of their duties under the Plan to
an officer or employee of Popular (or committee thereof).

     Section 8.03 Records and Rules.

     The Administrator shall keep written records sufficient to reflect the identity of
Participants and Account balances. It shall adopt such rules as it shall deem reasonable and
appropriate to the administration of the Plan.

     Section 8.04 Claims Procedure.

     Claims for benefits under the Plan shall be filed with the Administrator on forms supplied by
the Administrator. If the Administrator determines that a claim of a Participant or Beneficiary
shall be denied, then the following provisions shall govern:

          (a) Disposition of Claim. Written notice of the disposition of a claim shall be furnished to
the claimant with ninety (90) days after the application is filed. If special circumstances require
an extension of time for processing the initial claim, a written notice of the extension and the
reason therefore shall be furnished to the claimant before the end of the initial ninety-day
period. In no event shall such extension extend beyond ninety (90) days. If a claim is denied, the
Administrator shall provide the claimant with written notice setting forth (i) the specific reason
for the denial, (ii) specific reference to pertinent Plan provisions upon which the denial is
based, (iii) a description of any additional material or information necessary for the claimant to
perfect the claim, and (iv) an explanation of the claimant’s rights with respect to the claims
review procedure.

          (b) Claims Review. If a claim for benefits is denied or if the claimant has had no response to
such claim within ninety (90) days of its submission (in which case the claim for benefits shall be
deemed to have been denied), the claimant or his duly authorized representative shall have the
right to (i) request a review of the denial of benefits by written notice delivered to the
Administrator within sixty (60) days of the receipt of written notice of denial or sixty (60) days
from the date the claim is deemed to be denied, (ii) review pertinent documents, and (3) submit
issues and comments in writing.

10

 

          (c) Decision on Review. The Administrator shall, upon receipt of a request for review
submitted by the claimant in accordance with subsection (b), appoint such person or persons (review
panel), in its complete discretion, to conduct such review, and to provide the claimant with
written notice of the decision reached by the review panel setting forth the specific reasons for
the decision and references to the provisions of the Plan upon which the decision is based. Such
notice shall be delivered to the claimant not later than sixty (60) days following the receipt of
the claimant’s request, unless the Administrator determines that a hearing is needed. If an
extension of time is required to conduct a hearing, written notice of the extension shall be
furnished to the claimant before the end of the original sixty (60) day period. If the decision on
review is not furnished within the time specified above, the claim shall be deemed denied on
review.

     Section 8.05 Correction of Errors.

     If an error in calculation or administration results in any Participant or Beneficiary
receiving from the Plan more or less than he should receive, the Administrator, upon discovery of
such error, shall correct the error by adjusting, as far as is practicable, the payments in such a
manner that the benefits to which such person was correctly entitled shall be paid. Popular shall
have the right to recover from the Participant or Beneficiary any amounts paid in excess of the
amounts due under the Plan.

ARTICLE IX. PLAN AMENDMENT AND TERMINATION

     The Board, in its discretion, shall have the right at any time to modify, alter, amend or
terminate the Plan in whole or in part by resolution communicated to Participants not later than
sixty (60) days following adoption. No amendment shall have the effect of reducing a Participant’s
benefit accrued to the date of the amendment. No amendment shall operate to increase the duties and
responsibilities of the Trustee except by written instrument duly executed by and between Popular
and the Trustee. Upon termination of the Plan, the Board may cause all benefits under the Plan to
become immediately payable.

ARTICLE X. MISCELLANEOUS PROVISIONS

     Section 10.01 Employment Rights.

     No provision of the Plan shall be deemed to abridge or limit any managerial right of the
Employer, or to give any employee or Participant the right to be retained in employment. By
participation in the Plan, each Participant, on behalf of himself, his heirs, assigns and
Beneficiary, shall be deemed conclusively to have agreed to and accepted the terms and conditions
of the Plan.

11

 

     Section 10.02 Nonalienation of Benefits.

     Except as otherwise provided by law, no benefit or distribution under the Plan shall be
subject either to the claim of any creditor of a Participant or Beneficiary other than Popular and
its affiliates, or to attachment, garnishment, levy, execution or other legal or equitable process
by any creditor of such person other than Popular and its affiliates, and no such person shall have
any right to alienate, anticipate or assign all or any portion of any benefit or distribution under
the Plan. The Plan shall not be liable for or subject to the debts, contracts, liabilities,
engagements or torts of any person entitled to benefits hereunder.

     If benefits of any Participant or Beneficiary are garnished or attached, the Administrator may
seek a declaratory judgment in a court of competent jurisdiction to determine the proper recipient
of the benefits to be paid by the Plan. During the pendency of such action, any benefits
that become payable may be paid into the court to be distributed by the court as it deems
proper at the conclusion of the action.

     Section 10.03 Withholding and Deductions.

     All payments made by Popular or Trustee under the Plan to any Participant or Beneficiary shall
be subject to applicable withholding and to such other deductions as shall at the time of such
payment be required under any income tax or other law, whether of the Commonwealth of Puerto Rico,
the United States or any other jurisdiction, and, in the case of payments to a Beneficiary, the
delivery to the Administrator of all necessary waivers, qualifications and other documentation.
Determinations by the Administrator as to withholding with respect thereto shall be binding on the
Participant and any Beneficiary.

     Section 10.04 Incapacity.

     If any Participant or Beneficiary is a minor, or is in the judgment of the Administrator
otherwise legally incapable of receiving and giving a valid receipt for any payment due him
hereunder, the Administrator may, unless and until a claim shall have been made by a guardian or
conservator of such person duly appointed by a court of competent jurisdiction, direct the Trustee
that payment be made to such person’s spouse, child, parent, brother or sister, or other person
deemed by the Administrator to be a proper person to receive such payment. Any payment so made
shall be a complete discharge of any liability under the Plan for such payment.

     Section 10.05 Effect of Invalidity of Provision.

     If any provision of the Plan is held invalid or unenforceable, such invalidity or
unenforceability shall not affect any other provisions hereof, and the Plan shall be construed and
enforced as if such provision had not been included.

12

 

     Section 10.06 Rights of Participants and Beneficiaries.

     The Plan and Trust shall at all times constitute an unsecured promise of Popular to pay
benefits under the Plan as they come due. The right of a Participant or Beneficiary to receive
benefits hereunder shall be solely an unsecured claim against the general assets of Popular. A
Participant or Beneficiary shall have no claim against or rights in any specific assets of Popular
and all assets of the Trust shall be deemed general assets of Popular.

     Section 10.07 Discretion of Administrator.

     The Administrator shall have the sole and absolute discretion to take or not to take such
actions as may be necessary or appropriate for the administration of the Plan. The exercise of such
discretion shall not be subject to question or review by any person, unless the
Administrator’s exercise of discretion was arbitrary and capricious.

     Section 10.08 Construction.

     In the construction of the Plan, the masculine shall include the feminine and the singular the
plural in, all cases where such meanings would be appropriate.

     Section 10.09 Controlling Law.

     The laws of the Commonwealth of Puerto Rico shall be the controlling state law in all matters
relating to the Plan and shall apply to the extent that it is not preempted by federal law.

IN WITNESS WHEREOF, Popular has caused this Plan to be signed by its duly authorized officer and
adopted as of the 1st day of August, 2008.

	 	 	 	 	 
	 	POPULAR, INC.

 	 
	 	By:  	/s/ Eduardo J. Negrón
 	 
	 	 	Eduardo J. Negrón 	 
	 	 	 	 
	 

13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}]]