Document:

exv10w2

Exhibit 10.2

FORM OF INDEMNIFICATION AGREEMENT

CLOUDARY CORPORATION

     This Indemnification Agreement (this “Agreement”), made and entered into as of
the            day of      , 20     , by and between Cloudary Corporation, an exempted company
incorporated under the laws of the Cayman Islands (the “Company”), and
(“Indemnitee”).

W I T N E S S E T H:

     WHEREAS, highly competent persons have become more reluctant to serve publicly-held
corporations as directors or officers unless they are provided with adequate protection through
insurance or adequate indemnification against risks of claims and actions against them arising out
of their service to and activities on behalf of the corporation.

     WHEREAS, the Board of Directors of the Company (the “Board”) has determined that, in order to
attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis,
at its sole expense, liability insurance to protect persons serving the Company and its
subsidiaries from certain liabilities.

     WHEREAS, the uncertainties relating to such insurance and to indemnification have increased
the difficulty of attracting and retaining such persons.

     WHEREAS, the Board has determined that the increased difficulty in attracting and retaining
such persons is detrimental to the best interests of the Company’s stockholders and that the
Company should act to assure such persons that there will be increased certainty of such protection
in the future.

     WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent
permitted by applicable law so that they will serve or continue to serve the Company free from
undue concern that they will not be so indemnified.

     WHEREAS, this Agreement is a supplement to and in furtherance of the Amended and Restated
Memorandum and Articles of Association (the “Memorandum and Articles”) of the Company and any
resolutions adopted pursuant thereto and shall not be deemed a substitute therefor, nor to diminish
or abrogate any rights of Indemnitee thereunder.

 

 

     WHEREAS, Indemnitee does not regard the protection available under the Memorandum and Articles
and insurance of the Company as adequate in the present circumstances, and may not be willing to
serve as an officer or director of the Company without adequate protection, and the Company desires
Indemnitee to serve in such capacity. Indemnitee is willing to serve, continue to serve and take
on additional service for or on behalf of the Company on the condition that he be so indemnified.

     NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the
Company and Indemnitee do hereby covenant and agree as follows:

ARTICLE 1

Certain Definitions

     (a) As used in this Agreement:

     “Change of Control” means any one of the following circumstances occurring after the date
hereof: (i) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act) shall have become, without prior approval of the Company’s Board by approval of at
least two-thirds of the Continuing Directors, the “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company representing 30% or
more of the combined voting power of the Company’s then outstanding voting securities (provided
that, for purposes of this clause (ii), the term “person” shall exclude (x) the Company, (y) any
trustee or other fiduciary holding securities under an employee benefit plan of the Company, and
(z) any corporation owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportions as their ownership of stock of the Company); (ii) there occurs a
merger or consolidation of the Company with any other entity, other than a merger or consolidation
which would result in the voting securities of the Company outstanding immediately prior to such
merger or consolidation continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) more than 51% of the combined voting
power of the voting securities of the surviving entity outstanding immediately after such merger or
consolidation and with the power to elect at least a majority of the board of directors or other
governing body of such surviving entity; (iii) all or substantially all the assets of the Company
are sold or disposed of in a transaction or series of related transactions; (iv) the approval by
the stockholders of the Company of a complete liquidation of the Company; or (v) the Continuing
Directors cease for any reason to constitute at least a majority of the members of the Board.

     “Continuing Director” means (i) each director on the Board on the date hereof or (ii) any new
director whose election or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in
office who were directors on the date hereof or whose election or nomination was so approved.

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     “Corporate Status” means the status of a person who is or was a director, officer, trustee,
general partner, managing member, fiduciary, board of directors’ committee member, employee or
agent of the Company or of any other Enterprise.

     “Disinterested Director” means a director of the Company who is not and was not a party to the
Proceeding in respect of which indemnification is sought by Indemnitee.

     “Enterprise” means the Company and any other corporation, limited liability company,
partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is
or was serving at the request of the Company as a director, officer, trustee, general partner,
managing member, fiduciary, board of directors’ committee member, employee or agent.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Expenses” means all direct and indirect costs (including attorneys’ fees, retainers, court
costs, transcripts, fees of experts, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees, and all other disbursements or
expenses) reasonably incurred in connection with (i) prosecuting, defending, preparing to prosecute
or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a
Proceeding or (ii) establishing or enforcing a right to indemnification under this Agreement, the
Memorandum and Articles, applicable law or otherwise. Expenses also shall include Expenses incurred
in connection with any appeal resulting from any Proceeding, including the premium, security for,
and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its
equivalent. For the avoidance of doubt, Expenses, however, shall not include any Liabilities.

     “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporate law and neither currently is, nor in the five years previous to its selection
or appointment has been, retained to represent (i) the Company or Indemnitee in any matter material
to either such party (other than with respect to matters concerning Indemnitee under this Agreement
or of other indemnitees under similar indemnification agreements) or (ii) any other party to the
Proceeding giving rise to a claim for indemnification hereunder.

     Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who,
under the applicable standards of professional conduct then prevailing, would have a conflict of
interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s
rights under this Agreement.

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     “Liabilities” means any losses or liabilities, including any judgments, fines, penalties and
amounts paid in settlement, arising out of or in connection with any Proceeding (including all
interest, assessments and other charges paid or payable in connection with or in respect of any
such judgments, fines, penalties or amounts paid in settlement).

     “Proceeding” means any threatened, pending or completed action, derivative action, suit,
claim, counterclaim, cross claim, arbitration, alternate dispute resolution mechanism,
investigation, inquiry, administrative hearing or any other actual, threatened or completed
proceeding, whether civil (including intentional and unintentional tort claims), criminal,
administrative or investigative, including any appeal therefrom, and whether instituted by or on
behalf of the Company or any other party, or any inquiry or investigation that Indemnitee in good
faith believes might lead to the institution of any such action, suit or other proceeding
hereinabove listed in which Indemnitee was, is or will be involved as a party, potential party,
non-party witness or otherwise by reason of any Corporate Status of Indemnitee, or by reason of any
action taken (or failure to act) by him or her or of any action (or failure to act) on his or her
part while serving in any Corporate Status.

     (b) For the purposes of this Agreement:

     References to “Company” shall include, in addition to the resulting or surviving corporation, any
constituent corporation (including any constituent of a constituent) absorbed in a consolidation or
merger which, if its separate existence had continued, would have had power and authority to
indemnify its directors, officers, employees or agents, so that if Indemnitee is or was a director,
officer, employee, or agent of such constituent corporation or is or was serving at the request of
such constituent corporation as a director, officer, employee, or agent of another corporation,
partnership, joint venture, trust or other enterprise, then Indemnitee shall stand in the same
position under the provisions of this Agreement with respect to the resulting or surviving
corporation as Indemnitee would have with respect to such constituent corporation if its separate
existence had continued.

     Reference to “other enterprise” shall include employee benefit plans; references to “fines” shall
include any excise tax assessed with respect to any employee benefit plan; references to “serving
at the request of the Company” shall include any service as a director, officer, employee or agent
of the Company which imposes duties on, or involves services by, such director, officer, employee
or agent with respect to an employee benefit plan, its participants or beneficiaries;

     and a person who acted in good faith and in a manner he reasonably believed to be in the best
interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have
acted in a manner “not opposed to the best interests of the Company” as referred to in this
Agreement.

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     Reference to “including” shall mean “including, without limitation,” regardless of whether the
words “without limitation” actually appear, references to the words “herein,” “hereof” and
“hereunder” and other words of similar import shall refer to this Agreement as a whole and not to
any particular paragraph, subparagraph, section, subsection or other subdivision.

ARTICLE 2

Services By Indemnitee

     Section 2.01. Services by Indemnitee. Indemnitee hereby agrees to serve as [a director of
the Company, for so long as Indemnitee is duly elected or appointed or until Indemnitee tenders his
or her resignation or is removed] [an officer of the Company until such time as Indemnitee’s
employment is terminated for any reason].

ARTICLE 3

Indemnification

     Section 3.01. General. (a) The Company hereby agrees to and shall indemnify Indemnitee and
hold Indemnitee harmless from and against any and all Expenses and Liabilities, in either case,
actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf by reason of Indemnitee’s
Corporate Status, to the fullest extent permitted by applicable law. The Company’s indemnification
obligations set forth in this Section 3.01 shall apply (i) in respect of Indemnitee’s past, present
and future service in any Corporate Status and (ii) regardless of whether Indemnitee is serving in
any Corporate Status at the time any such Expense or Liability is incurred.

     For purposes of this Agreement, the meaning of the phrase “to the fullest extent permitted by
applicable law” shall include, but not be limited to:

     (i) to the fullest extent permitted by any provision of the Companies Law (2010
Revision) of the Cayman Islands (the “Companies Law”), or the corresponding provision of
any successor statute, and

     (ii) to the fullest extent authorized or permitted by any amendments to or
replacements of the Companies Law adopted after the date of this Agreement that increase
the extent to which a corporation may indemnify its officers and directors.

     (b) Witness Expenses. Notwithstanding any other provision of this Agreement, to the extent
that Indemnitee is, by reason of his or her Corporate Status, a witness in any Proceeding to which
Indemnitee is not a party, he shall be indemnified against all Expenses actually and reasonably
incurred by Indemnitee or on his or her behalf in connection therewith.

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     (c) Expenses as a Party Where Wholly or Partly Successful. Notwithstanding any other
provisions of this Agreement, to the fullest extent permitted by applicable law, to the extent that
Indemnitee is a party to (or a participant in) and is successful, on the merits or otherwise, in
any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the
Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or
her in connection therewith. If Indemnitee is not wholly successful in such Proceeding, but is
successful, on the merits or otherwise, as to one or more but less than all claims, issues or
matters in such Proceeding, the Company shall, to the fullest extent permitted by applicable law,
indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on his
or her behalf in connection with each successfully resolved claim, issue or matter. For purposes
of this Section and without limitation, the termination of any claim, issue or matter in such a
Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to
such claim, issue or matter.

     Section 3.02. Exclusions. Notwithstanding any provision of this Agreement and unless
Indemnitee ultimately is successful on the merits with respect to any such claim, the Company shall
not be obligated under this Agreement to make any indemnity in connection with any claim made
against Indemnitee:

     (a) for (i) an accounting of profits made from the purchase and sale (or sale and purchase) by
Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act or
similar provisions of state statutory law or common law, regardless of whether the securities are
subject to the requirements of such provision; or (ii) any reimbursement of the Company by
Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits
realized by Indemnitee from the sale of securities of the Company, as required in each case under
the Exchange Act (including any such reimbursements that arise from an accounting restatement of
the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”),
or the payment to the Company of profits arising from the purchase and sale by Indemnitee of
securities in violation of Section 306 of the Sarbanes-Oxley Act); or

     (b) except as otherwise provided in Sections 6.01(e), prior to a Change of Control, in
connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including
any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its
directors, officers, employees or other indemnitees, unless (i) the Board authorized the Proceeding
(or any part of any Proceeding) prior to its initiation or (ii) the Company provides the
indemnification, in its sole discretion, pursuant to the powers vested in the Company under
applicable law.

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ARTICLE 4

Advancement Of Expenses; Defense Of Claims

     Section 4.01. Advances. Notwithstanding any provision of this Agreement to the contrary, the
Company shall advance any Expenses actually and reasonably incurred by Indemnitee in connection
with any Proceeding within twenty (20) days after the receipt by the Company of each statement
requesting such advance from time to time, whether prior to or after final disposition of any
Proceeding. Advances shall be unsecured and interest free. Advances shall be made without regard
to Indemnitee’s ability to repay such amounts and without regard to Indemnitee’s ultimate
entitlement to indemnification under the other provisions of this Agreement. Advances shall
include any and all reasonable Expenses incurred pursuing an action to enforce this right of
advancement, including Expenses incurred preparing and forwarding statements to the Company to
support the advances claimed.

     Section 4.02. Repayment of Advances or Other Expenses. Indemnitee agrees that Indemnitee
shall reimburse the Company for all Expenses advanced by the Company pursuant to Section 4.01, in
the event and only to the extent that it shall be determined by final judgment or other final
adjudication under the provisions of any applicable law (as to which all rights of appeal therefrom
have been exhausted or lapsed) that Indemnitee is not entitled to be indemnified by the Company for
such Expenses.

     Section 4.03. Defense of Claims. The Company will be entitled to participate in the Proceeding
at its own expense. Upon the delivery of written notice by the Company to Indemnitee, the Company
shall be entitled to assume the defense of any Proceeding with counsel consented to by Indemnitee
(such consent not to be unreasonably withheld), except for such Proceeding brought by the Company
or as to which the Indemnitee has reasonably concluded that there may be a conflict of interest
between the Company and the Indemnitee. After delivery of such notice, consent to such counsel by
Indemnitee and the retention of such counsel by the Company, the Company will not be liable to
Indemnitee under this Agreement for any fees or expenses of counsel subsequently incurred by
Indemnitee with respect to such Proceeding; provided that (i) Indemnitee shall have the right to
employ separate counsel in respect of any Proceeding at Indemnitee’s expense and (ii) if (A) the
employment of counsel by Indemnitee has been previously authorized in writing by the Company or (B)
Indemnitee shall have reasonably concluded upon the advice of counsel that there is a conflict of
interest between the Company and Indemnitee in the conduct of the defense of such Proceeding, then
in each such case the fees and expenses of Indemnitee’s counsel shall be at the Company’s expense.
The Company shall not settle any action, claim or Proceeding (in whole or in part) which would
impose any Expense, judgment, fine, penalty or limitation on Indemnitee without Indemnitee’s prior
written consent, such consent not to be unreasonably withheld. Indemnitee shall not settle any
action, claim or Proceeding (in whole or in part) which may impose any Expense, judgment, fine,
penalty or limitation on the Company without the Company’s prior written consent, such consent not to be unreasonably
withheld.

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ARTICLE 5

Procedures For Notification Of And Determination Of Entitlement To Indemnification

     Section 5.01. Notification; Request for Indemnification. (a) As soon as reasonably
practicable after receipt by Indemnitee of written notice that he is a party to or a participant
(as a witness or otherwise) in any Proceeding or of any other matter in respect of which Indemnitee
intends to seek indemnification or advancement of Expenses hereunder, Indemnitee shall provide to
the Company written notice thereof, including the nature of and the facts underlying the
Proceeding. The omission by Indemnitee to so notify the Company will not relieve the Company from
any liability which it may have to Indemnitee hereunder or otherwise.

     (b) To obtain indemnification under this Agreement, Indemnitee shall deliver to the Company a
written request for indemnification, including therewith such information as is reasonably
available to Indemnitee and reasonably necessary to determine Indemnitee’s entitlement to
indemnification hereunder. Such request(s) may be delivered from time to time and at such time(s)
as Indemnitee deems appropriate in his or her sole discretion. Indemnitee’s entitlement to
indemnification shall be determined according to Section 5.02 of this Agreement and applicable law.

     Section 5.02. Determination of Entitlement. (a) Where there has been a written request by
Indemnitee for indemnification pursuant to Section 5.01(b), then as soon as is reasonably
practicable (but in any event not later than 60 days) after final disposition of the relevant
Proceeding, a determination, if required by applicable law, with respect to Indemnitee’s
entitlement thereto shall be made in the specific case: (i) if a Change of Control shall not have
occurred, (A) by a majority vote of the Disinterested Directors, even though less than a quorum of
the Board, (B) by a committee of Disinterested Directors designated by a majority vote of the
Disinterested Directors, even though less than a quorum of the Board, (C) if there are no such
Disinterested Directors or, if such Disinterested Directors so direct, by Independent Counsel in a
written opinion to the Board, a copy of which shall be delivered to Indemnitee; or (ii) if a Change
of Control shall have occurred, by Independent Counsel in a written opinion to the Board, a copy of
which shall be delivered to Indemnitee. If it is so determined that Indemnitee is entitled to
indemnification, payment to Indemnitee shall be made within ten (10) days after such determination.
Indemnitee shall reasonably cooperate with the person, persons or entity making such determination
with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon
reasonable advance request any documentation or information which is not privileged or otherwise
protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary
to such determination. Any costs or expenses (including attorneys’ fees and disbursements) actually
and reasonably incurred by Indemnitee in so cooperating with the person, persons or entity making
such determination shall be borne by the Company (irrespective of the determination as to
Indemnitee’s entitlement to indemnification).

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     (b) If entitlement to indemnification is to be determined by Independent Counsel pursuant to
Section 5.02(a)(ii), such Independent Counsel shall be selected by Indemnitee, and Indemnitee shall
give written notice to the Company advising it of the identity of the Independent Counsel so
selected. If entitlement to indemnification is to be determined by Independent Counsel pursuant to
Section 5.02(a)(i)(C) (or if Indemnitee requests that such selection be made by the Board), such
Independent Counsel shall be selected by the Company in which case the Company shall give written
notice to Indemnitee advising him or her of the identity of the Independent Counsel so selected.
In either event, Indemnitee or the Company, as the case may be, may, within 10 days after such
written notice of selection shall have been received, deliver to the Company or to Indemnitee, as
the case may be, a written objection to such selection; provided, however, that such objection may
be asserted only on the ground that the Independent Counsel so selected does not meet the
requirements of “Independent Counsel” as defined in Section 1 of this Agreement, and the objection
shall set forth with particularity the factual basis of such assertion. Absent a proper and timely
objection, the person so selected shall act as Independent Counsel. If such written objection is
so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel
unless and until such objection is withdrawn or a court of competent jurisdiction has determined
that such objection is without merit. If, within 20 days after the later of submission by
Indemnitee of a written request for indemnification pursuant to Section 5.01(b) hereof and the
final disposition of the Proceeding, no Independent Counsel shall have been selected and not
objected to, either the Company or Indemnitee may petition a court of competent jurisdiction for
resolution of any objection which shall have been made by the Company or Indemnitee to the other’s
selection of Independent Counsel and/or for the appointment as Independent Counsel of a person
selected by the court or by such other person as the court shall designate, and the person with
respect to whom all objections are so resolved or the person so appointed shall act as Independent
Counsel under Section 5.02(a) hereof. Upon the due commencement of any judicial proceeding or
arbitration pursuant to Section 6.01(a) of this Agreement, the Independent Counsel shall be
discharged and relieved of any further responsibility in such capacity (subject to the applicable
standards of professional conduct then prevailing).

     (c) The Company agrees to pay the reasonable fees and expenses of any Independent Counsel
serving under this Agreement.

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     Section 5.03. Presumptions and Burdens of Proof; Effect of Certain Proceedings. (a) In making
any determination with respect to entitlement to indemnification hereunder, the person or persons
or entity making such determination shall, to the fullest extent not prohibited by law, presume
that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a
request for indemnification in accordance with Section 5.01(b) of this Agreement, and the Company
shall, to the fullest extent not prohibited by law, have the burden of proof to overcome that
presumption in connection with the making by any person, persons or entity of any determination
contrary to that presumption. Neither the failure of any person, persons or entity to have made a
determination prior to the commencement of any action pursuant to this Agreement that
indemnification is proper in the circumstances because Indemnitee has met the applicable standard
of conduct, nor an actual determination by any person, persons or entity that Indemnitee has not
met such applicable standard of conduct, shall be a defense to the action or create a presumption
that Indemnitee has not met the applicable standard of conduct.

     (b) If the person, persons or entity empowered or selected under Section 5.02 of this
Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a
determination within the sixty (60) day period referred to in Section 5.02(a), the requisite
determination of entitlement to indemnification shall, to the fullest extent not prohibited by law,
be deemed to have been made and Indemnitee shall be entitled to such indemnification , absent (i)
a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to
make Indemnitee’s statement not materially misleading, in connection with the request for
indemnification, or (ii) a prohibition of such indemnification under applicable law; provided,
however, that such 60-day period may be extended for a reasonable time, not to exceed an additional
thirty (30) days, if the person, persons or entity making the determination with respect to
entitlement to indemnification in good faith requires such additional time for the obtaining or
evaluating of documentation and/or information relating thereto.

     (c) The termination of any Proceeding or of any claim, issue or matter therein, by judgment,
order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not
(except as otherwise expressly provided in this Agreement) of itself adversely affect the right of
Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and
in a manner which he reasonably believed to be in or not opposed to the best interests of the
Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to
believe that his or her conduct was unlawful.

     (d) For purposes of any determination of good faith, Indemnitee shall be deemed to have acted
in good faith if Indemnitee’s action is in good faith reliance on the records or books of account
of any Enterprise, including financial statements, or on information supplied to Indemnitee by the
officers of such Enterprise in the course of their duties, or on the advice of legal counsel for
such Enterprise or on information or records given or reports made to
such Enterprise by an independent certified public accountant or by an appraiser or other expert selected by
such Enterprise. The provisions of this Section 5.03(d) shall not be deemed to be exclusive or to
limit in any way the other circumstances in which Indemnitee may be deemed or found to have met the
applicable standard of conduct set forth in this Agreement.

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     (e) The knowledge and/or actions, or failure to act, of any other director, trustee, partner,
managing member, fiduciary, officer, agent or employee of any Enterprise shall not be imputed to
Indemnitee for purposes of determining any right to indemnification under this Agreement.

ARTICLE 6

Remedies Of Indemnitee

     Section 6.01. Adjudication or Arbitration. (a) In the event of any dispute between Indemnitee
and the Company hereunder as to entitlement to indemnification or advancement of Expenses
(including where (i) a determination is made pursuant to Section 5.02 of this Agreement that
Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is
not timely made pursuant to Section 4.01 of this Agreement, (iii) payment of indemnification
pursuant to Section 3.01 of this Agreement is not made within ten (10) days after a determination
has been made that Indemnitee is entitled to indemnification, (iv) no determination as to
entitlement to indemnification is timely made pursuant to Section 5.02 of this Agreement and no
payment of indemnification is made within ten (10) days after entitlement is deemed to have been
determined pursuant to Section 5.03(b)) or (v) a contribution payment is not made in a timely
manner pursuant to Section 8.04 of this Agreement, then Indemnitee shall be entitled to an
adjudication by a court of his or her entitlement to such indemnification, contribution or
advancement. Alternatively, in such case, Indemnitee, at his or her option, may seek an award in
arbitration to be conducted by the China International Economic and Trade Arbitration Commission or
the Hong Kong International Arbitration Centre. The Company shall not oppose Indemnitee’s right to
seek any such adjudication or award in arbitration.

     (b) In the event that a determination shall have been made pursuant to Section 5.02(a) of this
Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or
arbitration commenced pursuant to this Section 6.01 shall be conducted in all respects as a de novo
trial, or arbitration, on the merits, and Indemnitee shall not be prejudiced by reason of that
adverse determination. In any judicial proceeding or arbitration commenced pursuant to this
Section 6.01 the Company shall have the burden of proving Indemnitee is not entitled to
indemnification or advancement of Expenses, as the case may be, and the Company may not refer to or
introduce into evidence any determination pursuant to Section 5.02(a) of this Agreement adverse to
Indemnitee for any purpose. If Indemnitee commences a judicial proceeding or arbitration pursuant
to this Section 6.01, Indemnitee shall not be required to
reimburse the Company for any advances pursuant to Section 4.02 until a final determination is made with respect to
Indemnitee’s entitlement to indemnification (as to which all rights of appeal have been exhausted
or lapsed).

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     (c) If a determination shall have been made pursuant to Section 5.02(a) of this Agreement that
Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any
judicial proceeding or arbitration commenced pursuant to this Section 6.01, absent (i) a
misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make
Indemnitee’s statement not materially misleading, in connection with the request for
indemnification, or (ii) a prohibition of such indemnification under applicable law.

     (d) The Company shall be precluded from asserting in any judicial proceeding or arbitration
commenced pursuant to this Section 6.01 that the procedures and presumptions of this Agreement are
not valid, binding and enforceable and shall stipulate in any such court or before any such
arbitrator that the Company is bound by all the provisions of this Agreement.

     (e) The Company shall indemnify Indemnitee to the fullest extent permitted by law against all
Expenses and, if requested by Indemnitee, shall (within ten (10) days after the Company’s receipt
of such written request) advance such Expenses to Indemnitee, which are reasonably incurred by
Indemnitee in connection with any judicial proceeding or arbitration brought by Indemnitee for (i)
indemnification or advances of Expenses by the Company (or otherwise for the enforcement,
interpretation or defense of his or her rights) under this Agreement or any other agreement,
including any other indemnification, contribution or advancement agreement, or any provision of the
Company’s Memorandum and Articles of Association now or hereafter in effect or (ii) recovery or
advances under any directors’ and officers’ liability insurance policy maintained by the Company,
regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification,
contribution, advancement or insurance recovery, as the case may be.

ARTICLE 7

Directors’ And Officers’ Liability Insurance

     Section 7.01. D&O Liability Insurance. To the extent that the Company maintains a policy or
policies of insurance (“D&O Liability Insurance”) providing liability insurance for directors and
officers of the Company in their capacities as such (and for any capacity in which any director or
officer of the Company serves any other Enterprise at the request of the Company), in respect of
acts or omissions occurring while serving in such capacity, Indemnitee shall be covered by such
policy or policies, in accordance with its or their terms, to the maximum extent of the coverage
available for any other director or officer under such policy or policies.

12

 

     Section 7.02. Evidence of Coverage. Upon request by Indemnitee, the Company shall provide
copies of all policies of D&O Liability Insurance obtained and maintained in accordance with
Section 7.01 of this Agreement. The Company shall promptly notify Indemnitee of any changes in
such insurance coverage.

ARTICLE 8

Miscellaneous

     Section 8.01. Nonexclusivity of Rights. The rights of indemnification, contribution and
advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other
rights to which Indemnitee may at any time be entitled to under applicable law, the Company’s
Memorandum and Articles, any agreement, a vote of stockholders or a resolution of directors, or
otherwise. No right or remedy herein conferred is intended to be exclusive of any other right or
remedy, and every other right and remedy shall be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other right or remedy.

     Section 8.02. Insurance and Subrogation. (a) If, at the time the Company receives notice of a
claim hereunder, the Company has D&O Liability Insurance in effect, the Company shall give prompt
notice of such Proceeding to the insurers in accordance with the procedures set forth in the
respective policies. The Company shall thereafter take all necessary or desirable action to cause
such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding
in accordance with the terms of such policies. The failure or refusal of any such insurer to pay
any such amount shall not affect or impair the obligations of the Company under this Agreement.

     (b) In the event of any payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers
required and take all action necessary to secure such rights, including execution of such documents
as are necessary to enable the Company to bring suit to enforce such rights.

     (c) The Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable (or for which advancement is provided) hereunder if and to the extent that
Indemnitee has actually received such payment under any insurance policy or other indemnity
provision.

     Section 8.03. The Company’s obligation to indemnify or advance Expenses hereunder to
Indemnitee who is or was serving at the request of the Company as a director, officer, trustee,
partner, managing member, fiduciary, board of directors’ committee member, employee or agent of any other Enterprise shall be
reduced by any amount Indemnitee has actually received as indemnification or advancement of
Expenses from such Enterprise.

13

 

     Section 8.04. Contribution. To the fullest extent permissible under applicable law, if the
indemnification provided for in this Agreement is unavailable to Indemnitee for any reason
whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount
incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to
be paid in settlement and/or for Expenses, in connection with any claim relating to an
indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in
light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits
received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving
rise to such Proceeding; and/or (ii) the relative fault of the Company (and its directors,
officers, employees and agents) and Indemnitee in connection with such event(s) and/or
transaction(s).

     Section 8.05. Amendment. This Agreement may not be modified or amended except by a written
instrument executed by or on behalf of each of the parties hereto. No amendment, alteration or
repeal of this Agreement or of any provision hereof shall limit, restrict or reduce any right of
Indemnitee under this Agreement in respect of any act or omission, or any event occurring, prior to
such amendment, alteration or repeal. To the extent that a change in applicable law, whether by
statute or judicial decision, permits greater indemnification, contribution or advancement of
Expenses than would be afforded currently under the Company’s Memorandum and Articles and this
Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the
greater benefits so afforded by such change.

     Section 8.06. Waivers. The observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively) by the party
entitled to enforce such term only by a writing signed by the party against which such waiver is to
be asserted. Unless otherwise expressly provided herein, no delay on the part of any party hereto
in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall
any waiver on the part of any party hereto of any right, power or privilege hereunder operate as a
waiver of any other right, power or privilege hereunder nor shall any single or partial exercise of
any right, power or privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, power or privilege hereunder.

     Section 8.07. Entire Agreement. This Agreement and the documents referred to herein constitute
the entire agreement between the parties hereto with respect to the matters covered hereby, and any
other prior or contemporaneous oral or written understandings or agreements with respect to the
matters covered hereby are superseded by this Agreement, provided that this Agreement is a
supplement to and in furtherance of the Memorandum and Articles and
applicable law, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of
Indemnitee thereunder.

14

 

     Section 8.08. Severability. If any provision or provisions of this Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and
enforceability of the remaining provisions of this Agreement (including each portion of any Section
of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that
is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired
thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or
provisions shall be deemed reformed to the extent necessary to conform to applicable law and to
give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent
possible, the provisions of this Agreement (including each portion of any Section of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that is not itself
invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested
thereby.

     Section 8.09. Notices. All notices, requests, demands and other communications under this
Agreement shall be in writing (which may be by facsimile transmission). All such notices, requests
and other communications shall be deemed received on the date of receipt by the recipient thereof
if received prior to 5:00 p.m. in the place of receipt and such day is a business day in the place
of receipt. Otherwise, any such notice, request or communication shall be deemed not to have been
received until the next succeeding business day in the place of receipt. The address for notice to
a party is as shown on the signature page of this Agreement, or such other address as any party
shall have given by written notice to the other party as provided above.

     Section 8.10. Binding Effect. (a) The Company expressly confirms and agrees that it has
entered into this Agreement and assumed the obligations imposed on it hereby in order to induce
Indemnitee to serve as a director or officer of the Company, and the Company acknowledges that
Indemnitee is relying upon this Agreement in serving as a director or officer of the Company.

     (b) This Agreement shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and their respective successors, assigns, including any direct or indirect successor
by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or
assets of the Company, spouses, heirs, and executors, administrators, personal and legal
representatives. The Company shall require and cause any successor (whether direct or indirect by
purchase, merger, consolidation or otherwise) to all or substantially all, or a substantial part of
the business or assets of the Company, by written agreement in form and substance satisfactory to
Indemnitee, expressly to assume and agree to perform this Agreement in the manner and to the same
extent that the Company would be required to perform if no such succession had taken place.

15

 

     (c) The indemnification, contribution and advancement of Expenses provided by, or granted
pursuant to this Agreement shall continue as to a person who has ceased to be a director or officer
and shall inure to the benefit of the heirs, executors, administrators, legatees and assigns of
such a person.

     Section 8.11. Governing Law. This Agreement and the legal relations among the parties shall be
governed by, and construed and enforced in accordance with, the laws of the State of New York,
without regard to its conflict of laws rules.

     Section 8.12. Consent to Jurisdiction. Except with respect to any arbitration commenced by
Indemnitee pursuant to Section 6.01(a) of this Agreement, the Company and Indemnitee hereby
irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in
connection with this Agreement shall be brought only in any state or United States federal court
located in the Borough of Manhattan, the City of New York, New York (each a “New York Court”), and
not in any other state or federal court in the United States of America or any court in any other
country, (ii) consent to submit to the exclusive jurisdiction of the New York Court for purposes of
any action or proceeding arising out of or in connection with this Agreement, (iii) waive any
objection to the laying of venue of any such action or proceeding in the New York Court, and (iv)
waive, and agree not to plead or to make, any claim that any such action or proceeding brought in
the New York Court has been brought in an improper or inconvenient forum.

     Section 8.13. Headings. The Article and Section headings in this Agreement are for convenience
of reference only, and shall not be deemed to alter or affect the meaning or interpretation of any
provisions hereof.

     Section 8.14. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall for all purposes be deemed to be an original but all of which together shall
constitute one and the same Agreement. Only one such counterpart signed by the party against whom
enforceability is sought needs to be produced to evidence the existence of this Agreement.

     Section 8.15. Use of Certain Terms. As used in this Agreement, the words “herein,” “hereof,”
and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any
particular paragraph, subparagraph, section, subsection, or other subdivision. Whenever the context
may require, any pronoun used in this Agreement shall include the corresponding masculine, feminine
or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and
vice versa.

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered to be effective as of the
date first above written.

16

 

	 	 	 	 	 
	Company Name	 	INDEMNITEE
	 
	 	 	 	 
	CLOUDARY CORPORATION	 	 
	 
	 
	By:
	 	 	 	 
	 

	 	Name:
	 	Address:
	 
	 	Title:	 	Facsimile:
	 
	 	Address:	 	 
	 

	 	Facsimile:	 	 
	 

	 	Attention:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	With a copy to:	 	With a copy to:
	 

	 	Address:
	 	               Address:
	 

	 	Facsimile:
	 	                Facsimile:
	 

	 	Attention:
	 	                Attention:

17exv4w1

Exhibit 4.1

(Face of Security)

          THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE
OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO POPULAR NORTH AMERICA, INC. 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 IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO 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.

 

 

CUSIP No. 733188 AB2

ISIN No. US733188AB23

POPULAR NORTH AMERICA, INC.

7.47% SENIOR NOTE DUE 2014

Payment of Principal, Premium, if any,

and Interest Guaranteed by

POPULAR, INC.

          Popular North America, Inc., a corporation duly organized and existing under the laws of the
State of Delaware (hereinafter called the “Company”, which term includes any successor
Person under the Indenture), for value received, hereby promises to pay to Cede & Co., or
registered assigns, the principal sum of Seventy Eight Million U.S. dollars ($78,000,000) on
December 21, 2014 and to pay interest thereon, from June 10, 2011 or from the most recent Interest
Payment Date to which interest has been paid or duly provided for, semi-annually on June 21 and
December 21 in each year, commencing December 21, 2011, and at the Maturity of the principal
hereof, at the rate per annum equal to 7.47%, until the principal hereof is paid or made available
for payment. Notwithstanding the foregoing, interest on any principal that is overdue shall be
payable on demand.

          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 first calendar day of
June and December, as applicable (whether or not a Business Day, as such term is defined in Section
3 on the reverse hereof), next preceding such Interest Payment Date, unless otherwise provided on
the face hereof (a “Regular Record Date”). Any interest so payable, but not punctually
paid or duly provided for, on any Interest Payment Date will forthwith cease to be payable to the
Holder on such Regular Record Date and such Defaulted Interest either may 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

(Face of Security continued on next page)

-2-

 

by the Trustee, notice whereof shall be given to the Holder of this Security not less than 10
days prior to such Special Record Date, or may be paid in any other lawful manner not inconsistent
with the requirements of any securities exchange on which this Security may be listed, and upon
such notice as may be required by such exchange, all as more fully provided in the Indenture.

          Except as provided in the next paragraph, payment of any amount payable on this Security will
be made in U.S. dollars at the office or agency of the Company maintained for that purpose in the
Borough of Manhattan, The City of New York (or at any other office or agency maintained by the
Company for that purpose), against surrender of this Security in the case of any payment due at the
Maturity of the principal hereof; provided, however, that, at the option of the
Company and subject to the next paragraph, payment of interest may be made by check mailed to the
address of the Person entitled thereto as such address shall appear in the Security Register.

          Payment of any amount payable on this Security will be made in U.S. dollars by wire transfer
of immediately available funds to an account maintained by the payee with a bank located in the
Borough of Manhattan, The City of New York, if (i) the principal of this Security is at least
$10,000,000 and (ii) the Holder entitled to receive such payment transmits a written request for
such payment to be made in such manner to the Paying Agent at its Corporate Trust Office,
Attention: Securities Processing Division, on or before the Regular Record Date preceding the day
on which such payment is to be made; provided that, in the case of any such payment due at
the Maturity of the principal hereof, this Security must be surrendered at the office or agency of
the Company maintained for that purpose in the Borough of Manhattan, The City of New York (or at
any other office or agency maintained by the Company for that purpose) in time for the Paying Agent
to make such payment in such funds in accordance with its normal procedures. Any such request made
with respect to any payment on this Security payable to a particular Holder will remain in effect
for all later payments on this Security payable to such Holder, unless such request is revoked on
or before the Regular Record Date preceding the day on which such payment is to be made, in which
case such revocation shall be effective for such

(Face of Security continued on next page)

-3-

 

payment and all later payments; provided that, in the case of any payment due at
Maturity of the principal of this Security to be effective any request for revocation must be made
no later than the 15th day prior to the Maturity of the principal of this Security. In the case of
any payment of interest payable on an Interest Payment Date, such written request must be made by
the Person who is the registered Holder of this Security on the relevant Regular Record Date. The
Company will pay any administrative costs imposed by banks in connection with making payments by
wire transfer with respect to this Security, but any tax, assessment or other governmental charge
imposed upon any payment will be borne by the Holder of this Security and may be deducted from the
payment by the Company or the Paying Agent.

          Notwithstanding any provision of this Security or the Indenture, the Company may make any and
all payments of principal, premium (if any) and interest on this Security pursuant to the
applicable procedures of the Depositary for this Security as permitted in the Indenture.

          Notwithstanding any provision of this Security or the Indenture, if any amount of principal,
premium (if any) or interest would otherwise be due on this Security on a day (the “Specified
Day”) that is not a Business Day, such amount may be paid or made available for payment on the
next succeeding Business Day with the same force and effect as if such amount were paid on the
Specified Day. The provisions of this paragraph shall apply to the Security in lieu of the
provisions of Section 113 of the Indenture.

          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 by manual
signature, this Security shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

(Face of Security continued on next page)

-4-

 

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

Dated: June 10, 2011

	 	 	 	 	 
	 	POPULAR NORTH AMERICA, INC.

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[SEAL]

	 	 	 	 	 
	 	 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	 	 
	 	Attest:  	 	 
	 	 	 	 
	 	 	 	 
	 

          This Security is one of the Securities of the series designated herein and referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON, as

Trustee

 	 
	 	By  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 

 

	 	 	 	 	 

(Reverse of Security)

          1. Securities and Indenture

          This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), all unconditionally guaranteed by Popular, Inc. (hereinafter called the
“Guarantor”) and issued and to be issued in one or more series under an Indenture, dated as of
October 1, 1991, as supplemented by the First Supplemental Indenture, dated as of February 28,
1995, the Second Supplemental Indenture, dated as of May 8, 1997, and the Third Supplemental
Indenture, dated as of August 5, 1999 (together herein called the “Indenture”, which term
shall have the meaning assigned to it in such instrument), duly executed and delivered by the
Company and the Guarantor to The Bank of New York Mellon Trust Company, N.A. (successor in interest
to The Bank of New York Mellon Trust Company, N.A.), as Trustee (herein called the “Trustee”, which
term includes any successor trustee under the Indenture) and as Successor Trustee to Citibank,
N.A., and reference is hereby made to the Indenture for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the Guarantor, the Trustee
and the Holders of the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered.

          2. Series and Denominations

          This Security is one of the series designated on the face hereof, initially limited to an
aggregate principal amount of Seventy Eight Million U.S dollars ($78,000,000) (or the equivalent
thereof in any other currency or currencies or currency units), which amount may be increased at
the option of the Company if in the future it determines that it may wish to sell additional
Securities of this series. References herein to “this series” mean the series of securities
designated on the face hereof. References herein to the “Securities” include (unless the context
otherwise requires) any other securities issued as described in this paragraph and forming a single
series with the Securities.

          The Securities are issuable only in registered form without coupons in “Authorized
Denominations”, which

(Reverse of Security continued on next page)

-6-

 

term shall mean $100,000 and any integral multiples of $1,000 in excess thereof.

          3. Business Day and U.S. Dollars

          For all purposes of this Security, the term “Business Day” means each Monday, Tuesday,
Wednesday, Thursday or Friday that is neither a legal holiday nor a day on which commercial banking
institutions in New York City generally are authorized or required by law, regulation or executive
order to close.

          References in this Security to “U.S. dollars” shall mean, as of any time, the coin or
currency that is then legal tender for the payment of public and private debts in the United States
of America.

          4. Redemption at the Company’s Option

          Except as provided below, this Security shall not be redeemable at the option of the Company
before the Stated Maturity Date.

          In the event that the Guarantor shall be obligated to pay any Additional Amounts due to a
change in law, regulation or interpretation, the Company may, at its option, redeem this Security
as a whole at a redemption price of 100% of the principal amount thereof together with accrued
interest to the date fixed for redemption.

          5. Transfer and Exchange

          As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his or her attorney duly authorized in
writing, and thereupon one or more new Securities of this series and of like tenor, of Authorized
Denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

(Reverse of Security continued on next page)

-7-

 

          As provided in the Indenture and subject to certain limitations therein set forth, Securities
of this series are exchangeable for a like aggregate principal amount of Securities of this series
and of like tenor of a different Authorized Denomination, as requested by the Holder surrendering
the same.

          No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

          Prior to due presentment of this Security for registration of transfer, the Company, the
Guarantor, the Trustee and any agent of the Company, the Guarantor 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 nor the Guarantor nor the Trustee nor any
such agent shall be affected by notice to the contrary.

          If this Security is a Global Security, this Security shall be subject to the provisions of the
Indenture relating to Global Securities, including the limitations in Section 305 thereof on
transfers and exchanges of Global Securities.

          6. Remedies.

          If an Event of Default 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.

          As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and offered the Trustee
indemnity

(Reverse of Security continued on next page)

-8-

 

reasonably satisfactory to it, and the Trustee shall not have received from the Holders of a
majority in principal amount of Securities of this series at the time Outstanding a direction
inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days
after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any
suit instituted by the Holder of this Security for the enforcement of any payment of principal
hereof or any premium or interest hereon on or after the respective due dates expressed herein.

          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 premium, if any) and interest on this Security at the times, place and rate,
and in the coin or currency, herein prescribed.

          7. Modification and Waiver.

          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 Guarantor and the rights of
the Holders of the Securities of each series to be affected under the Indenture at any time by the
Company, the Guarantor 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 (considered together
as one class for this purpose). The Indenture also contains provisions (i) permitting the Holders
of a majority in principal amount of the Securities at the time Outstanding of all series to be
affected under the Indenture (considered together as one class for this purpose), on behalf of the
Holders of all Securities of such series, to waive compliance by the Company and the Guarantor with
certain provisions of the Indenture and (ii) permitting the Holders of a majority in principal
amount of the Securities at the time Outstanding of any series to be affected under the Indenture
(with each such series considered separately for this purpose), on behalf of the Holders of all
Securities of such series, to waive certain past defaults under the Indenture and their
consequences. 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

(Reverse of Security continued on next page)

-9-

 

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.

          8. Governing Law.

          This Security and the Indenture shall be governed by and construed in accordance with the laws
of the State of New York.

          9. Defined Terms

          All terms used in this Security that are defined in the Indenture shall have the meaning
assigned to them in the Indenture.

(Reverse of Security continued on next page)

-10-

 

GUARANTEE

OF

POPULAR, INC.

          Popular, Inc. (the “Guarantor”) hereby unconditionally guarantees to the Holder of this
Security duly authenticated and delivered by the Trustee, the due and punctual payment of the
principal, and premium, if any, of (including any amount in respect of original issue discount),
and interest, if any (together with any Additional Amounts payable pursuant to the terms of this
Security), on this Security and the due and punctual payment of the sinking fund payments, if any,
and analogous obligations, if any, provided for pursuant to the terms of this Security, when and as
the same shall become due and payable, whether at Stated Maturity or upon redemption, repayment or
upon declaration of acceleration or otherwise according to the terms of this Security and of the
Indenture. In case of default by the Company in the payment of any such principal (including any
amount in respect of original issue discount), any premium or interest (together with any
Additional Amounts payable pursuant to the terms of this Security), sinking fund payment, or
analogous obligation, the Guarantor agrees duly and punctually to pay the same. The Guarantor
hereby agrees that its obligations hereunder shall be as principal and not merely as surety, and
shall be absolute and unconditional irrespective of any extension of the time for payment of this
Security, any modification of this Security, any invalidity, irregularity or unenforceability of
this Security or the Indenture, any failure to enforce the same or any waiver, modification,
consent or indulgence granted to the Company with respect thereto by the Holder of this Security or
the Trustee, or any other circumstances which may otherwise constitute a legal or equitable
discharge of a surety or guarantor. The Guarantor hereby waives diligence, presentment, demand of
payment, filing of claims with a court in the event of merger or bankruptcy of the Company, any
right to require a demand or proceeding first against the Company, protest or notice with respect
to this Security or the indebtedness evidenced thereby and all demands whatsoever, and covenants
that this guarantee will not be discharged as to this Security except by payment in full of the
principal of (including any amount payable in respect of original issue discount), and any

(Reverse of Security continued on next page)

-11-

 

premium or interest (together with any Additional Amounts payable pursuant to the terms of
this Security), thereon.

          The Guarantor irrevocably waives any and all rights to which it may be entitled, by operation
of law or otherwise, upon making any payment hereunder (i) to be subrogated to the rights of a
Holder against the Company with respect to such payment or otherwise to be reimbursed, indemnified
or exonerated by the Company in respect thereof or (ii) to receive any payment, in the nature of
contribution or for any other reason, from any other obligor with respect to such payment.

          This guarantee shall not be valid or become obligatory for any purpose with respect to this
Security until the certificate of authentication on this Security shall have been signed by the
Trustee.

          This guarantee is governed by and construed in accordance with the laws of the State of New
York.

(Reverse of Security continued on next page)

-12-

 

          IN WITNESS WHEREOF, Popular, Inc. has caused this guarantee to be signed by its duly
authorized officers and has caused its corporate seal to be affixed hereunto or imprinted hereon.

	 	 	 	 	 
	 	POPULAR, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[SEAL]

	 	 	 	 	 
	 	 	 
	 	Attest:  	 	 
	 	 	 	 
	 	 	 	 

 

	 	 	 	 	 

ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face of this Security, 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 the 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.

 

-14-

 

ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

 

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

 

 

 

(Please Print or Typewrite Name and Address

Including Postal Zip Code of Assignee)

 

the attached Security and all rights thereunder, and hereby irrevocably constitutes and appoints

 

to transfer said Security on the books of the Company, with full power of substitution in the
premises.

Dated: ______________

	 	 	 

	Signature Guaranteed
	 	 
	 

	 	 
	NOTICE: Signature must be
guaranteed.

	 	Notice: The signature to this
assignment must correspond with the
name of the Holder as written upon
the face of the attached Security in
every particular, without alteration
or enlargement or any change
whatsoever.

-15-

 

SCHEDULE OF INCREASES OR DECREASES

The following increases or decreases in

this Global Note have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal	 	 
	 	 	 	 	 	 	Amount of	 	 
	 	 	Amount of	 	Amount of	 	this	 	 
	 	 	decrease	 	increase	 	Global	 	Signature
	 	 	in	 	in	 	Note	 	of
	 	 	Principal	 	Principal	 	following	 	authorized
	 	 	Amount of	 	Amount of	 	such	 	signatory
	 	 	this	 	this	 	decrease	 	of Trustee
	Date of	 	Global	 	Global	 	or	 	or Notes
	Exchange	 	Note	 	Note	 	increase	 	Custodian
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 

-16-

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