Document:

exv10w17

Exhibit 10.17

CHANGE IN CONTROL COMPENSATION AGREEMENT

BETWEEN

ORIENTAL FINANCIAL GROUP INC.

AND

JOSÉ RAMÓN GONZÁLEZ

     Agreement made as of the 23rd day of February, 2011, by and between Oriental
Financial Group Inc., a Puerto Rico corporation and a financial holding company with principal
offices in San Juan, Puerto Rico (hereinafter referred to as “OFG”) and José R. González, of legal
age, married, business executive and resident of San Juan, Puerto Rico (hereinafter referred to as
the “Executive Officer”).

WITNESSETH:

     WHEREAS, the Executive Officer is presently the Senior Executive Vice President of Banking and
Corporate Development of OFG;

     WHEREAS, it is in the best interest of OFG to promote the retention of the Executive Officer’s
services on behalf of OFG by reducing concerns that the Executive Officer may be adversely affected
in the event of change in control of OFG as defined herein below;

     WHEREAS, OFG and the Executive Officer wish to enter into this agreement to set forth the
terms and conditions for the payment by OFG of certain compensation
to the Executive Officer in the event of the termination of Executive Officer’s employment as a result of a change in
control of OFG;

     NOW, THEREFORE, in consideration of the mutual covenants set forth herein, OFG and the
Executive Officer do hereby agree as follows:

          1. TERM.

               This Agreement shall be in full force and effect so long as the Executive Officer is employed
by OFG.

          2. TERMINATION OF EMPLOYMENT DUE TO A CHANGE IN CONTROL

               A. In the event there is a Change in Control of OFG (as defined herein below) while this
Agreement is in effect and as a result thereof or within one (1) year after the Change in Control,
the Executive Officer’s employment with OFG is terminated by OFG or its successor in interest, the
Executive Officer shall be entitled to the cash payment compensation determined as provided in
subparagraph B below.

               B. The cash payment compensation shall be in an amount equal to two (2) times the sum of the
Executive Officer’s annual base salary at the time the termination of his employment occurs plus
the last cash bonus paid to the Executive Officer prior to the termination of his employment.

               C. The cash payment compensation shall be in lieu of any other payments which the Executive
Officer may be entitled to receive by law, contract or otherwise. The
cash payment compensation shall be due and payable in a lump sum to the Executive Officer on or before
the thirtieth (30th) day following the termination of the Executive Officer employment.
The receipt of the cash payment compensation shall not affect the rights of Executive Officer to
any vested benefits or accrued compensation, including bonuses.

 

 

               D. For purposes of this Agreement, a “Change in Control of OFG” shall be deemed to have
occurred if any Person or persons acting as a group within the meaning of Sections 13(d) and 14(d)
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is or becomes the
Beneficial Owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of OFG representing 25% or more of either the then outstanding shares of common stocks
of OFG or the combined voting power of OFG’s then outstanding securities and if individuals who on
the date hereof are members of OFG’s Board of Directors cease for any reason to constitute at least
a majority thereof, unless the appointment election or nomination of each new director who was not
a director on the date hereof has been approved by at least two-thirds of the directors in office
on the date hereof.

          E. For purposes of this Agreement, “Person” shall have the meaning given in Section 3(a)(9) of
the Exchange Act, except that such term shall not include (i) OFG or any of its subsidiaries; (ii)
an individual who on the date of this Agreement is a director or officer of OFG or any of its
subsidiaries, or a beneficial owner of more than ten percent (10%) of OFG’s outstanding securities;
(iii) a trustee or other fiduciary holding securities under an employee benefit plan of OFG or any of its subsidiaries; (iv)
an underwriter temporarily holding securities pursuant to an offering of such securities; or (v) a
corporation or entity owned, directly or indirectly, by the stockholders of OFG in substantially
the same proportion as their ownership of stock of OFG on the date of this Agreement.

               F. Notwithstanding anything to the contrary herein, any event or transaction which would
otherwise constitute a Change in Control of OFG (hereinafter referred to as a “Transaction”) shall
not constitute a Change in Control of OFG for purposes of this Agreement if the Executive Officer
participates as an acquirer in the Transaction or as an equity investor or stockholder of the
acquiring entity or any of its affiliates and thus, the Executive Officer shall not be entitled to
receive the benefits provided for in this Agreement.

     3. ASSIGNMENT.

          This Agreement is personal to each of the parties hereto and neither party may assign or
delegate any of his or its rights or obligations hereunder without first obtaining the written
consent of the other party.

     4. AMENDMENTS OR ADDITIONS.

          No amendments or additions to this Agreement shall be binding unless in writing and signed by
both parties. The prior approval by a two-thirds affirmative vote of the full Board of Directors
of OFG shall be required in order for OFG to authorize any amendments or additions to this
Agreement, to give any consent or waivers of provisions of this Agreement, or to take any other action under this
Agreement.

     5. MISCELLANEOUS.

          A. The provisions of this Agreement shall be deemed severable and the invalidity or
unenforceability of any provision shall not affect the validity or enforceability of the other
provisions hereof.

          B. This Agreement shall be governed in all respects and be interpreted by and under the laws
of the Commonwealth of Puerto Rico, except to the extent that such law may be preempted by
applicable United States federal law, in which case this Agreement shall be governed and be
interpreted by and under United States federal law. Venue for the litigation of any and all maters
arising under or in connection with this Agreement shall be laid in the United States District
Court for the District of Puerto Rico, at San Juan, in the case of federal jurisdiction, and in the
Court of First Instance, Superior Part, the Commonwealth of Puerto Rico in San Juan, in the case of
state court jurisdiction.

	 	 	 	 	 
	EXECUTIVE OFFICER

	 	ORIENTAL FINANCIAL GROUP INC.	 	 
	 
	 	 	 	 
	/s/ José Ramón González

	 	/s/ José Rafael Fernández	 	 
	 

José R. GONZÁLEZ

	 	 

JOSÉ RAFAEL FERNÁNDEZ
	 	 
	Senior Executive Vice President of

	 	President, CEO and Vice	 	 
	Banking and Corporate Development

	 	Chairman of the Board	 	 

2exv10w1

Exhibit 10.1

Avago Performance Bonus (“APB”)

FY2011 Plan Document for Executive Employees

	 	 	 

	Document: Annual 

Performance Bonus for 

Executives

	 	Applicability: Executive employees
(Division Vice President, Vice
President, Senior Vice President,
President and Chief Executive Officer
(“CEO”))
	 
	 	 
	Approved: March 8, 2011

	 	Effective Date: November 1, 2010
	 
	 	 
	 

	 	Review date: Annual

Purpose

The purpose and scope of the Avago Performance Bonus (“APB”) Plan Document for Executive Employees
is to define the process to award the annual incentive bonus and to ensure the Plan parameters are
managed consistently across Avago Technologies (the “Company”).

Introduction

The Company has established the Avago Performance Bonus (“Program”) for eligible executive
employees. The objectives of this discretionary Program are to:

	 	§ 	 	Share the success of the Company
	 
	 	§ 	 	Reward employees for outstanding business results
	 
	 	§ 	 	Recognize levels of individual performance multiplier
	 
	 	§ 	 	Foster teamwork
	 
	 	§ 	 	Retain employees

Program Period

Incentive awards under the Program are based on Corporate performance and, where applicable,
Business Division or Function performance measured against predetermined targets for each Program
period. The Program period begins on the first day of each fiscal year and ends on the last day of
the fiscal year.

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Eligibility

Prior to the beginning of each Program period the criteria for participation in the Program will be
set by the Compensation Committee of the Company’s Board of Directors (the “Compensation
Committee”) at its sole discretion.

Conditions of Eligibility: All regular full-time and regular part-time executive employees who are:

	 	•	 	Not on a Sales Incentive Plan (SIP)
	 
	 	•	 	Employed before fiscal year fourth quarter
	 
	 	•	 	Employed on the APB payout date
	 
	 	•	 	On leave of absence (“LOA”) with eligible earnings during the Program period

Description

The performance results for the Program period are based on a weighting system comprised of
Corporate performance and where applicable Business Division/Function performance.

	 	 	 

	Corporate 

Performance

	 	Corporate performance for the Program period will be based on the
attainment of Company targets as defined for the specific fiscal year: Targets
are set by the CEO and the Compensation Committee. Attainment measurements
and targets are maintained by Finance.
	 
	 	 
	Business Division 

or Function 

Performance

	 	Business Division or Function performance for the Program period will be
based on the attainment of Business Division or Function goals. Goals
are set by the CEO and the Compensation Committee. Attainment measurements and targets are maintained by
Finance.
	 
	 	 
	Program Award 

Determination

	 	The Program award payout (“Program Award”) for each participant will be
determined as follows.

Definitions:

	 	1.	 	Eligible Earnings: Represents base wages paid during the performance period and
includes vacation, holiday and sick pay. Eligible earnings exclude disability payments,
bonus payments and allowances. Total eligible earnings for the Program period will reflect
part-time status, unpaid LOA, hire date or re-hire date.
	 
	 	2.	 	Attainment %: Payout on performance attainment for each goal between the threshold and
the maximum will be determined by a linear formula.
	 
	 	3.	 	Performance Multiplier: Based on performance each participant, other than the CEO,
will be assigned a performance multiplier on a scale of 0.5 to 1.5 by the CEO, subject to
the review and approval of the Compensation Committee. In the discretion of the
Compensation Committee, the CEO may be assigned a performance multiplier on a scale of 0.5
to 1.5.

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	 	4.	 	Target Bonus Percent: Percent of eligible earnings that will be paid if the Company and
Business Division/Function attainment is 100% of goals. This percent is assigned to each
executive function or individual, as determined by the CEO and the Compensation Committee.
	 
	 	 	 	Target Bonus Percent is prorated based on eligibility and may be prorated based on a change
in an executive’s function or position that results in a change in Target Bonus Percentage
during the performance period.

Any exceptions require approval from both the CEO and the Compensation Committee

Payout

The fiscal year end payout is made in cash after the end of the fiscal year and is calculated using
the payout formula based on:

	 	•	 	Actual attainment against fiscal year Corporate and Division/Function metrics
	 
	 	•	 	Current year performance multiplier

Payout formula

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Payout	 	Payout	 	Payout
	Metric	 	Weight	 	Threshold	 	Minimum	 	Target	 	Maximum
	Revenue
Growth
	 	 	25	%	 	 	60	%1	 	 	50	%	 	 	100	%	 	 	150	%
	Operating Profit
	 	 	25	%	 	 	90	%1	 	 	50	%	 	 	100	%	 	 	150	%
	Business Division or Function Results (includes Direct Expenses)
	 	 	50	%	 	Division/      Function Specific 2	 	 	50	%	 	 	100	%	 	 	150	%

 

			
	1	 	To be validated by Finance each year.
	 
	2	 	Direct Expenses have a payout range of minimum 80% to maximum 120%

In the event the Compensation Committee elects to assign the CEO a Performance Multiplier
greater than 1.0, the Compensation Committee may elect to pay the portion of the CEO’s bonus amount
that exceeds the bonus amount calculated using a Performance Multiplier of 1.0 in the form of an
equity award, instead of paying such amount in cash. The Compensation Committee shall determine the type

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and terms of any such equity award, which award shall be granted under the Company’s 2009
Equity Incentive Award Plan.

Policies and Practices

Various considerations may impact the administration and payout of the Program. Such
considerations may include, but are not limited to the following:

	 	1.	 	Program Administration: The Compensation Committee will establish guidelines for the
Program in line with corporate strategies and objectives. The Compensation Committee has
final authority as to any issues related to the interpretation and the administration of
the Program, including the resolution of any unusual circumstances.
	 
	 	2.	 	Compensation Committee Discretion: The Compensation Committee will set the
Program performance targets. The Compensation Committee may, at its sole discretion, at
any time alter, amend, suspend or in any other way modify the Program to align with the
changing needs of the Company without prior notification to any participant.
	 
	 	3.	 	Payment Authorization: Employees will be eligible to participate in the APB program
period if they are employed before the fiscal year fourth quarter and remain employed on
the payout date. All awards must be approved by the CEO and the Compensation Committee.
The Program award will be paid in full, as soon as administratively feasible, following the
end of a Program period.
	 
	 	4.	 	Termination: Any employee may be excluded from Program participation, at any time, at
the sole discretion of the Compensation Committee. Except as required by applicable law or
regulation, in order to receive a Program award payment for the applicable Program period,
an employee must be: (1) on the payroll, and (2) an eligible participant of the Program at
the time of payout. Except as required by applicable law or regulation, the Company will
not seek repayment of a valid bonus payout if the employee terminates employment after
payment for the previous performance period.
	 
	 	5.	 	Pro-rated Payments: Pro-rated payment will be made in cases as set forth below:

	 	•	 	Position changes from non-sales to sales (on SIP) or from sales (on SIP) to non-sales.
	 
	 	•	 	Transfer between Business Divisions or Functions during the fiscal year of the
performance period.
	 
	 	•	 	Termination for disability: In the event a participant terminates employment
with the Company for disability reasons, such employee will be considered eligible for
completed plan periods in which the employee participated.
	 
	 	•	 	Termination upon death: Upon the death of a participant, the award will be paid
along with all other payouts based on eligible earnings during the Program period.
Payment will be made to legal beneficiaries, as designated by the employee and on
file with the Company.

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	 	6.	 	Right of Employment and Payment: Management and the Compensation Committee reserves
the right, at their sole discretion, to restrict participation in the Program at any time.
Participation under this Program does not affect the employment status of the participant
and does not imply continued employment with the Company. Either participant or Company
may terminate the employment relationship at any time, for any reason, with or without
cause.
	 
	 	 	 	Payments made under the Program are not an element of the participant’s salary or base
compensation (“Compensation”) and shall not be considered as part of such Compensation in
the event of severance, redundancy, resignation or any other situation unless required by
local law. The granting and receipt of payments under the Program is voluntary and at the
Compensation Committee’s sole discretion, and does not constitute a claim for further
payments regardless of how many times such payments have previously been granted to the
participant.
	 
	 	7.	 	Unfunded Status/Right of Assignment: No assets are reserved for this Program and no
person has a right or interest in Company assets as a result of the existence of this
Program. No right or interest in the Program may be assigned or transferred, or subject to
any lien, directly, by operation of law or otherwise, including without limitation,
bankruptcy, pledge, garnishment, attachment, levy or other creditor’s process.
	 
	 	8.	 	Taxes: All awards payable under the Program are taxable as ordinary income in the year
of payment and subject to applicable taxes and withholdings. Employees on a temporary
relocation are paid and taxed from their home country.
	 
	 	9.	 	Plan Amendment or Termination: The Compensation Committee may amend or terminate this
Program at any time. While the Compensation Committee intends that any amendment or
termination would be prospective, the Compensation Committee reserves the right to act
retroactively without prior written notice to the participants.
	 
	 	10.	 	Final Decision: The Compensation Committee will make the final determination as to the
eligibility for participation in the Program and any other applicable terms. All decisions
made by the Compensation Committee regarding this Program shall be final.

This Program shall be governed by local laws and regulations.

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APPENDIX

Payout Examples at Target:

This example of the fiscal year end payout is based on the following assumptions:

	 	•	 	Employed full-time during the entire fiscal year
	 
	 	•	 	Annual Eligible Earnings in local currency is 100,000
	 
	 	•	 	Performance Multiplier is 1.5 or 150% applies
	 
	 	•	 	Bonus target is 30%
	 
	 	•	 	Corporate attainment for the fiscal year is 100%
	 
	 	•	 	Division attainment is 100%

(Note: The example does not represent actual executive level bonus targets or salaries)

Payment: The fiscal year end payout is made after the end of the fiscal year and is calculated
using the formula based on:

	 	•	 	Actual attainment against fiscal year Corporate and Division/Function metrics
	 
	 	•	 	Current year performance multiplier

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Payout	 	Payout	 	Payout
	Metric	 	Weight	 	Threshold	 	Minimum	 	Target	 	Maximum
	Revenue
Growth
	 	 	25	%	 	 	60	%	 	 	50	%	 	 	100	%	 	 	150	%
	Operating Profit
	 	 	25	%	 	 	90	%	 	 	50	%	 	 	100	%	 	 	150	%
	Business Division or Function Results 
	 	 	50	%	 	Division/      Function Specific	 	 	50	%	 	 	100	%	 	 	150	%

Payout Formula

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