Document:

EX-10.25

  

 
 PURCHASE AND ASSUMPTION AGREEMENT

 ALL DEPOSITS 

AMONG 
 FEDERAL DEPOSIT
INSURANCE CORPORATION, 
 RECEIVER OF DORAL BANK, 

SAN JUAN, PUERTO RICO 

FEDERAL DEPOSIT INSURANCE CORPORATION 

AND 
 BANCO POPULAR
DE PUERTO RICO 
 DATED AS OF 

February 27, 2015 
  

 
  

  

			
	Basic P&A Agreement – 2/26/15		Doral Bank
	Version 6.4P – PURCHASE AND ASSUMPTION AGREEMENT		San Juan, PR

 PURCHASE AND ASSUMPTION AGREEMENT 

TABLE OF CONTENTS 

 

							
	 ARTICLE I. GENERAL
		 	1	  
			
	 1.1
		 Purpose
		 	1	  
	 1.2
		 [Reserved]
		 	1	  
	 1.3
		 Defined Terms
		 	2	  
		
	 ARTICLE II. ASSUMPTION OF LIABILITIES
		 	11	  
			
	 2.1
		 Liabilities Assumed by Assuming Institution
		 	11	  
	 2.2
		 Interest on Deposit Liabilities
		 	12	  
	 2.3
		 Unclaimed Deposits
		 	13	  
	 2.4
		 Employee Plans
		 	13	  
		
	 ARTICLE III. PURCHASE OF ASSETS
		 	13	  
			
	 3.1
		 Assets Purchased by the Assuming Institution
		 	13	  
	 3.2
		 Asset Purchase Price
		 	14	  
	 3.3
		 Manner of Conveyance; Limited Warranty; Nonrecourse; Etc.
		 	16	  
	 3.4
		 Puts of Assets to the Receiver
		 	16	  
	 3.5
		 Assets Not Purchased by Assuming Institution
		 	18	  
	 3.6
		 Retention or Repurchase of Assets Essential to Receiver
		 	20	  
	 3.7
		 Receiver’s Offer to Sell Withheld Loans
		 	21	  
		
	 ARTICLE IV. ASSUMPTION OF CERTAIN DUTIES AND OBLIGATIONS
		 	21	  
			
	 4.1
		 Continuation of Banking Business
		 	21	  
	 4.2
		 Credit Card Business
		 	22	  
	 4.3
		 Safe Deposit Business
		 	22	  
	 4.4
		 Safekeeping Business
		 	22	  
	 4.5
		 Trust Business
		 	23	  
	 4.6
		 Bank Premises
		 	23	  
	 4.7
		 Agreement with Respect to Leased Data Management Equipment
		 	28	  
	 4.8
		 Certain Existing Agreements
		 	29	  
	 4.9
		 Informational Tax Reporting
		 	29	  
	 4.10
		 Insurance
		 	30	  
	 4.11
		 Office Space for Receiver and Corporation; Certain Payments
		 	30	  
	 4.12
		 Continuation of Group Health Plan Coverage for Former Employees of the Failed Bank
		 	31	  
	 4.13
		 Interim Asset Servicing
		 	32	  
		
	 ARTICLE V. DUTIES WITH RESPECT TO DEPOSITORS OF THE FAILED BANK
		 	32	  
			
	 5.1
		 Payment of Checks, Drafts, Orders and Deposits
		 	32	  
	 5.2
		 Certain Agreements Related to Deposits
		 	32	  
	 5.3
		 Notice to Depositors
		 	33	  
		
	 ARTICLE VI. RECORDS
		 	33	  
		
	 ARTICLE VI         Transfer of Records
		 	33	  
	 6.2
		 [Reserved]
		 	33	  

							
	 6.3
		 Preservation of Records
		 	34	  
	 6.3(c)
		 Access to Records; Copies
		 	34	  
		
	 ARTICLE VIII. BID; INITIAL PAYMENT
		 	35	  
		
	 ARTICLE VIII. ADJUSTMENTS
		 	35	  
			
	 8.1
		 Pro Forma Statement
		 	35	  
	 8.2
		 Correction of Errors and Omissions; Other Liabilities
		 	35	  
	 8.3
		 Payments
		 	36	  
	 8.4
		 Interest
		 	36	  
	 8.5
		 Subsequent Adjustments
		 	36	  
		
	 ARTICLE IX. CONTINUING COOPERATION
		 	36	  
			
	 9.1
		 General Matters
		 	36	  
	 9.2
		 Additional Title Documents
		 	36	  
	 9.3
		 Claims and Suits
		 	37	  
	 9.4
		 Payment of Deposits
		 	37	  
	 9.5
		 Withheld Payments
		 	37	  
	 9.6
		 Proceedings with Respect to Certain Assets and Liabilities
		 	38	  
	 9.7
		 Information
		 	38	  
	 9.8
		 Tax Ruling
		 	38	  
		
	 ARTICLE X. CONDITION PRECEDENT
		 	39	  
		
	 ARTICLE XI. REPRESENTATIONS AND WARRANTIES OF THE ASSUMING INSTITUTION
		 	39	  
			
	 11.1
		 Corporate Existence and Authority
		 	39	  
	 11.2
		 Third Party Consent
		 	39	  
	 11.3
		 Execution and Enforceability
		 	39	  
	 11.4
		 Compliance with Law
		 	39	  
	 11.5
		 Insured or Guaranteed Loans
		 	40	  
	 11.6
		 Representations Remain True
		 	40	  
	 11.7
		 No Reliance; Independent Advice
		 	40	  
		
	 ARTICLE XII INDEMNIFICATION
		 	40	  
			
	 12.1
		 Indemnification of Indemnitees
		 	40	  
	 12.2
		 Conditions Precedent to Indemnification
		 	44	  
	 12.3
		 No Additional Warranty
		 	44	  
	 12.4
		 Indemnification of Receiver and Corporation
		 	45	  
	 12.5
		 Obligations Supplemental
		 	45	  
	 12.6
		 Criminal Claims
		 	45	  
	 12.7
		 Limited Guaranty of the Corporation
		 	45	  
	 12.8
		 Subrogation
		 	46	  
		
	 ARTICLE XIII. MISCELLANEOUS
		 	46	  
			
	 13.1
		 Expenses
		 	46	  
	 13.2
		 Waiver of Jury Trial
		 	46	  
	 13.3
		 Consent; Determination or Discretion
		 	47	  
	 13.4
		 Rights Cumulative
		 	47	  
	 13.5
		 References
		 	47	  

 
 

  

					
	Basic P&A Agreement – 2/26/15		i		Doral Bank
	Version 6.4P – PURCHASE AND ASSUMPTION AGREEMENT				San Juan, PR

 

									
		 	13.6	  	 Notice
	  	 	47	  
		 	13.7	  	 Entire Agreement
	  	 	48	  
		 	13.8	  	 Counterparts
	  	 	48	  
		 	13.9	  	 Governing Law
	  	 	48	  
		 	13.11	  	 Modification
	  	 	49	  
		 	13.12	  	 Manner of Payment
	  	 	49	  

									
		 	13.13	  	 Waiver
	  	 	49	  
		 	13.14	  	 Severability
	  	 	50	  
		 	13.15	  	 Term of Agreement
	  	 	50	  
		 	13.16	  	 Survival of Covenants, Etc.
	  	 	50	  
		 	13.17	  	 Right of Receiver or Corporation to Audit
	  	 	50	  

 
 

  
 SCHEDULES 

 

									
	 	  	 	  	 	  	Page	 
	 Excluded Deposit Liability Accounts
	  	Schedule 2.1(a)	  		  	 	52	  
	 Acquired Subsidiaries
	  	Schedule 3.1(h)	  		  	 	58	  
	 Acquired Assets in Optional Loan Pools
	  	Schedule 3.1(n)	  		  	 	59	  
	 Other Real Estate
	  	Schedule 3.1(o)	  		  	 	60	  
	 Purchase Price of Acquired Assets
	  	Schedule 3.2	  		  	 	61	  
	 Excluded Securities
	  	Schedule 3.5(l)	  		  	 	63	  
	 Bank Premises in Underserved Areas
	  	Schedule 4.1(b)	  		  	 	64	  
	 Data Retention Catalog
	  	Schedule 6.3	  		  	 	65	  
	 Accounts Excluded from Calculation of Deposit Franchise Bid Premium
	  	Schedule 7	  		  	 	67	  

 EXHIBITS 
  

											
	 	  	 	 	  	 	  	Page	 
	 Final Legal Notice
	  	 	Exhibit 2.3A	  	  		  	 	183	  
	 Affidavit of Mailing
	  	 	Exhibit 2.3B	  	  		  	 	185	  
	 Valuation of Certain Qualified Financial Contracts
	  	 	Exhibit 3.2(c)	  	  		  	 	186	  
	 Interim Asset Servicing Arrangement
	  	 	Exhibit 4.13	  	  		  	 	188	  

  

					
	Basic P&A Agreement – 2/26/15	 	ii	 	Doral Bank
	Version 6.4P – PURCHASE AND ASSUMPTION AGREEMENT	 		 	San Juan, PR

 PURCHASE AND ASSUMPTION AGREEMENT 

ALL DEPOSITS 

THIS AGREEMENT, made and entered into as of the 27th day of February, 2015, by and among the FEDERAL DEPOSIT INSURANCE
CORPORATION, RECEIVER of DORAL BANK, SAN JUAN, PUERTO RICO (the “Receiver”), BANCO POPULAR DE PUERTO RICO, organized under the laws of the Commonwealth of Puerto Rico, and having its principal place of business
in HATO REY, PUERTO RICO (the “Assuming Institution”), and the FEDERAL DEPOSIT INSURANCE CORPORATION, organized under the laws of the United States of America and having its principal office
in Washington, D.C., acting in its corporate capacity (the “Corporation”). 

R E C I T A L S 

A. On the Bank Closing Date, the Chartering Authority closed DORAL BANK (the “Failed Bank”) pursuant to applicable law and the
Corporation was appointed Receiver thereof. 
 B. The Assuming Institution desires to purchase certain assets and assume certain deposits and other
liabilities of the Failed Bank on the terms and conditions set forth in this Agreement. 
 C. Pursuant to 12 U.S.C. § 1823(c)(2)(A), the Corporation
may provide assistance to the Assuming Institution to facilitate the transactions contemplated by this Agreement, which assistance may include indemnification pursuant to Article XII. 

D. The Board of Directors of the Corporation (the “Board”) has determined to provide assistance to the Assuming Institution on the terms and
subject to the conditions set forth in this Agreement. 
 E. The Board has determined pursuant to 12 U.S.C. § 1823(c)(4)(A) that such assistance is
necessary to meet the obligation of the Corporation to provide insurance coverage for the insured deposits in the Failed Bank and is the least costly to the deposit insurance fund of all possible methods for meeting such obligation. 

NOW, THEREFORE, in consideration of the mutual promises herein set forth and other valuable consideration, the parties hereto agree as
follows: 
 A G R E E M E N T 

ARTICLE I. GENERAL. 

1.1. Purpose. The purpose of this Agreement is to set forth requirements regarding, among other things, the terms
and conditions on which the Assuming Institution purchases certain assets and assumes certain liabilities of the Failed Bank. 

1.2. [Reserved.] 

  

			
	Basic P&A Agreement – 2/26/15		Doral Bank
	Version 6.4P – PURCHASE AND ASSUMPTION AGREEMENT		San Juan, PR

 1.3. Defined Terms. Capitalized terms used in this Agreement shall
have the meanings set forth or referenced in this Section 1.3. As used herein, words imparting the singular include the plural and vice versa. 

“Accounting Records” means the general ledger and subsidiary ledgers and supporting schedules which support the
general ledger balances. 
 “Acquired Assets” means all assets of the Failed Bank purchased pursuant to this Agreement.
Assets owned by Subsidiaries of the Failed Bank are not “Acquired Assets” within the meaning of this definition by virtue of being owned by such Subsidiaries. 

“Acquired Subsidiary” or “Acquired Subsidiaries” means one or more, as applicable, Subsidiaries of the
Failed Bank acquired pursuant to Section 3.1. 
 “Affiliate” of any Person means any director, officer, or employee of
that Person and any other Person (i) who is directly or indirectly controlling, or controlled by, or under direct or indirect common control with, such Person, or (ii) who is an affiliate of such Person as the term “affiliate” is
defined in § 2(k) of the Bank Holding Company Act of 1956, as amended, 12 U.S.C. § 1841. 
 “Agreement” means
this Purchase and Assumption Agreement by and among the Assuming Institution, the Corporation and the Receiver, as amended or otherwise modified from time to time. 

“Assumed Deposits” means Deposits. 

“Assuming Institution” has the meaning set forth in the introduction to this Agreement. 

“Bank Closing Date” means the close of business of the Failed Bank on the date on which the Chartering Authority closed such
institution. 
 “Bank Premises” means the banking buildings, drive-in banking facilities, teller facilities (staffed or
automated), storage and service facilities, structures connecting remote facilities to banking houses, land on which the foregoing are located and unimproved land, together with any adjacent parking, that are owned or leased by the Failed Bank and
that have formerly been utilized, are currently utilized, or as of the Bank Closing Date, are intended to be utilized in the future by the Failed Bank as shown on the Failed Bank Records. 

“Bank Premises Surrender Date” means, with respect to each specific Bank Premises, the date selected by the
Assuming Institution to surrender such Bank Premises to the Receiver, which date shall be no later than the first day after the Receiver is satisfied that all of the conditions for surrender of such Bank Premises set forth in this Agreement have
been met; provided that, unless otherwise provided in this Agreement, such date shall not be more than 150 days after the Bank Closing Date. 

“Bid Amount” has the meaning set forth in Article VII. 

“Bid Form” means Exhibit “A” to the bid instructions provided to the Assuming Institution. 

  

					
	Basic P&A Agreement – 2/26/15		2		Doral Bank
	Version 6.4P – PURCHASE AND ASSUMPTION AGREEMENT				San Juan, PR

 “Bid Valuation Date” means 12/31/14. 

“Board” has the meaning set forth in Recital D. 

“Book Value” means, with respect to any Acquired Asset and any Liability Assumed, the dollar amount thereof stated on the
Failed Bank Records. The Book Value of any item shall be determined as of the Bank Closing Date after adjustments made by the Receiver for differences in accounts, suspense items, unposted debits and credits and other similar adjustments or
corrections and for setoffs, whether voluntary or involuntary. The Book Value of an Acquired Subsidiary shall be determined from the investment in subsidiary and related accounts on the “bank only” (unconsolidated) balance sheet of the
Failed Bank based on the Equity Method of Accounting. Without limiting the generality of the foregoing, (i) the Book Value of a Liability Assumed shall include all accrued and unpaid interest thereon as of the Bank Closing Date, and
(ii) the Book Value of a Loan shall reflect adjustments for earned interest, or unearned interest (as it relates to the “rule of 78s” or add-on-interest loans, as applicable), if any, as of the Bank Closing Date, adjustments for the
portion of earned or unearned loan-related credit life and/or disability insurance premiums, if any, attributable to the Failed Bank as of the Bank Closing Date, and adjustments for Failed Bank Advances, if any, in each case as determined for
financial reporting purposes. The Book Value of an Acquired Asset shall not include any adjustment for loan premiums, discounts or any related deferred income, fees or expenses, or general or specific reserves on the Failed Bank Records. 

“Business Day” means a day other than a Saturday, Sunday, Federal legal holiday or legal holiday under the laws of the State
where the Failed Bank is located, or a day on which the principal office of the Corporation is closed. 
 “Chartering
Authority” means (i) with respect to a national bank, a Federal savings association or savings bank, the Office of the Comptroller of the Currency, (ii) with respect to a bank or savings institution chartered by a State, the
agency of such State charged with primary responsibility for regulating and/or closing banks or savings institutions, as the case may be, (iii) the Corporation in accordance with 12 U.S.C. § 1821(c)(4), with regard to self-appointment, or
(iv) the appropriate Federal banking agency in accordance with 12 U.S.C. § 1821(c)(9). 
 “Commitment” means the
unfunded portion of a line of credit or other commitment reflected on the Failed Bank Records to make an extension of credit (or additional advances with respect to a Loan) that was legally binding on the Failed Bank as of the Bank Closing Date,
other than extensions of credit pursuant to the credit card business and overdraft protection plans of the Failed Bank, if any. 

“Corporation” has the meaning set forth in the introduction to this Agreement. 

“Counterclaim” has the meaning set forth in Section 12.1(b). 

“Credit Documents” means the agreements, instruments, certificates or other documents at any time evidencing or otherwise
relating to, governing or executed in connection with or as security for, a Loan, including without limitation notes, bonds, loan agreements, letter of credit applications, lease financing contracts, banker’s acceptances, drafts, interest
protection agreements, currency exchange agreements, repurchase agreements, reverse repurchase agreements, guarantees, deeds of trust, mortgages, assignments, security agreements, pledges, 

  

					
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	Version 6.4P – PURCHASE AND ASSUMPTION AGREEMENT				San Juan, PR

 
subordination or priority agreements, lien priority agreements, undertakings, security instruments, certificates, documents, legal opinions, participation agreements and intercreditor agreements,
and all amendments, modifications, renewals, extensions, rearrangements, and substitutions with respect to any of the foregoing. 

“Credit File” means all Credit Documents and all other credit, collateral or insurance documents in the possession or custody
of the Assuming Institution, or any of its Subsidiaries or Affiliates, relating to an Acquired Asset or a Loan included in a Put Notice, or copies of any such documents. 

“Deposit” means a deposit as defined in 12 U.S.C. § 1813(l), including without limitation, outstanding cashier’s
checks and other official checks and all uncollected items included in the depositors’ balances and credited on the Failed Bank Records; provided that the term “Deposit” shall not include all or any portion of those deposit balances
which, in the discretion of the Receiver or the Corporation, (i) may be required to satisfy it for any liquidated or contingent liability of any depositor arising from an unauthorized or unlawful transaction, or (ii) may be needed to
provide payment of any liability of any depositor to the Failed Bank or the Receiver, including the liability of any depositor as a director or officer of the Failed Bank, whether or not the amount of the liability is or can be determined as of the
Bank Closing Date. 
 “Deposit Secured Loan” means a loan in which the only collateral securing the loan is Assumed
Deposits or deposits at other insured depository institutions. 
 “Electronically Stored Information” means any system
backup tapes, any electronic mail (whether on an exchange or other similar system), any data on personal computers and any data on server hard drives. 

“Eligible Individuals” has the meaning set forth in Section 4.12. 

“Eligible Overdraft” means an overdraft that (1) was in existence on the Bank Closing Date with (2) a balance of
greater than $500, and (3) was not made pursuant to an overdraft protection plan or similar extension of credit. 
 “Equity
Method of Accounting” means the carrying value of a bank’s investment in a subsidiary is originally recorded at cost but is adjusted periodically to record as income the bank’s proportionate share of the subsidiary’s earnings
or losses and decreased by the amount of cash dividends or similar distributions received from the subsidiary. Acquired Subsidiaries with negative equity will be restated to $1 pursuant to the Equity Method of Accounting. 

“ERISA” has the meaning set forth in Section 4.12. 

“Failed Bank” has the meaning set forth in Recital A. 

“Failed Bank Advances” means the total sums paid by the Failed Bank to (i) protect its lien position, (ii) pay ad
valorem taxes and hazard insurance and (iii) pay premiums for credit life insurance, accident and health insurance and vendor’s single interest insurance. 

“Failed Bank Assessment Area” means the most recent Community Reinvestment Act (“CRA”) assessment area of the
Failed Bank reflected in the Information Package. 

  

					
	Basic P&A Agreement – 2/26/15		4		Doral Bank
	Version 6.4P – PURCHASE AND ASSUMPTION AGREEMENT				San Juan, PR

 “Failed Bank Records” means records as defined in 12 C.F.R. § 360.11(a)(3).

 “Fair Market Value” means: 

(a) “Market Value” as defined in the regulation prescribing the standards for real estate appraisals used in federally related
transactions, 12 C.F.R. § 323.2(g), and accordingly shall mean the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the assumed consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 

(i) Buyer and seller are typically motivated; 

(ii) Both parties are well informed or well advised, and acting in what they consider their own best interests; 

(iii) A reasonable time is allowed for exposure in the open market; 

(iv) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 

(v) The price represents the normal consideration for the property sold unaffected by special or creative financing or sales
concessions granted by anyone associated with the sale; 
 as determined as of the Bank Closing Date by an appraiser chosen by the Receiver; any costs and
fees associated with such determination shall be paid by the Receiver, and 
 with respect to Bank Premises (to the extent, if any, that
Bank Premises are purchased utilizing this valuation method), shall be determined not later than sixty (60) days after the Bank Closing Date by an appraiser selected by the Receiver within seven (7) days after the Bank Closing Date, and
with respect to Specialty Assets, shall be determined by an appraiser selected by the Receiver within seven (7) days after the Bank Closing Date; or 

(b) with respect to property other than Bank Premises and Specialty Assets purchased utilizing this valuation method, the price therefor as
established by the Receiver, as determined in accordance with clause (a) above. 
 “FDIC Office Space” has the meaning
set forth in Section 4.11. 
 “Final Legal Notice” has the meaning set forth in Section 2.3(a). 

“Fixtures” means those leasehold improvements, additions, alterations and installations constituting all or a part of Bank
Premises (including without limitation automated teller machines that are affixed to a Bank Premises and may be not removed without causing structural damage to such Bank Premises) and which were acquired, added, built, installed or purchased at the
expense of the Failed Bank, regardless of the holder of legal title thereto as of the Bank Closing Date. 

  

					
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	Version 6.4P – PURCHASE AND ASSUMPTION AGREEMENT				San Juan, PR

 “Furniture and Equipment” means the furniture and equipment (other than Safe
Deposit Boxes, Personal Computers, Owned Data Management Equipment, Specialty Assets and motor vehicles), leased or owned by the Failed Bank and reflected on the Failed Bank Records as of the Bank Closing Date and located on or at Bank Premises,
including without limitation automated teller machines (to the extent they are not Fixtures), carpeting, furniture, office machinery, shelving, office supplies, telephone, surveillance and security systems, ancillary equipment and artwork. Furniture
and equipment located at a storage facility not adjacent to a Bank Premises are excluded from this definition. 
 “GNMA”
means Government National Mortgage Association. 
 “GSE” means a government sponsored enterprise. 

“Indemnitees” means, 

(a) except as provided in Section 12.1(b)(xi), (i) the Assuming Institution, (ii) the Subsidiaries and Affiliates of the
Assuming Institution other than any Subsidiaries or Affiliates of the Failed Bank that are or become Subsidiaries or Affiliates of the Assuming Institution and (iii) the directors, officers, employees and agents of the Assuming Institution and
its Subsidiaries and Affiliates who are not also present or former directors, officers, employees or agents of the Failed Bank or of any Subsidiary or Affiliate of the Failed Bank; 

(b) specifically (i) BANCO POPULAR NORTH AMERICA, but only with respect to Failed Bank assets purchased or liabilities assumed by the
Assuming Institution hereunder and subsequently transferred to BANCO POPULAR NORTH AMERICA pursuant to the Alliance Agreement dated February 18, 2015 attached to the winning Bid Form and only to the extent the Assuming Institution would be an
Indemnitee had it retained the asset or liability; (ii) FIRSTBANK PUERTO RICO, but only with respect to Failed Bank assets purchased or liabilities assumed by the Assuming Institution hereunder and subsequently transferred to FIRSTBANK PUERTO
RICO pursuant to the Alliance Agreement dated February 18, 2015 attached to the winning Bid Form and only to the extent the Assuming Institution would be an Indemnitee had it retained the asset or liability; (iii) AM PR LLC, but only with
respect to Failed Bank assets purchased or liabilities assumed by the Assuming Institution hereunder and subsequently transferred to AM PR LLC pursuant to the Alliance Agreement dated February 18, 2015 attached to the winning Bid Form and only
to the extent the Assuming Institution would be an Indemnitee had it retained the asset or liability; (iv) CENTENNIAL BANK, but only with respect to Failed Bank assets purchased or liabilities assumed by the Assuming Institution hereunder and
subsequently transferred to CENTENNIAL BANK pursuant to the Alliance Agreement dated February 13, 2015 attached to the winning Bid Form and only to the extent the Assuming Institution would be an Indemnitee had it retained the asset or
liability. 
 “Information Package” means the most recent compilation of financial and other data with respect to the
Failed Bank, including any amendments or supplements thereto, provided to the Assuming Institution by the Corporation on the web site used by the Corporation to market the Failed Bank to potential acquirers. 

“Initial Payment” means the payment made pursuant to Article VII (based on the best information available as of the Bank
Closing Date), the amount of which shall be either (i) if the 

  

					
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	Version 6.4P – PURCHASE AND ASSUMPTION AGREEMENT				San Juan, PR

 
Bid Amount is positive, the aggregate Book Value of the Liabilities Assumed minus the sum of the aggregate purchase price of the Acquired Assets (including any Bank Premises, Other Real Estate,
Other Real Estate Subsidiaries, and Optional Loan Pools purchased via the Bid Form) as determined pursuant to Section 3.2 and the positive Bid Amount, or (ii) if the Bid Amount is negative, the sum of the aggregate Book Value of the
Liabilities Assumed and the negative Bid Amount minus the aggregate purchase price of the Acquired Assets (including any Bank Premises, Other Real Estate, Other Real Estate Subsidiaries, and Optional Loan Pools purchased via the Bid Form). The
Initial Payment shall be payable by the Corporation to the Assuming Institution if (i) the Liabilities Assumed are greater than the sum of the positive Bid Amount and the aggregate purchase price of the Acquired Assets, or if (ii) the sum
of the Liabilities Assumed and the negative Bid Amount are greater than the aggregate purchase price of the Acquired Assets. The Initial Payment shall be payable by the Assuming Institution to the Corporation if (i) the Liabilities Assumed are
less than the sum of the positive Bid Amount and the aggregate purchase price of the Acquired Assets, or if (ii) the sum of the Liabilities Assumed and the negative Bid Amount is less than the aggregate purchase price of the Acquired Assets.
Such Initial Payment shall be subject to adjustment as provided in Article VIII. 
 “Leased Data Management Equipment”
means any equipment, computer hardware, computer software (and the lease or licensing agreements related thereto), computer networking equipment, printers, fax machines, copiers, document scanners, data tape systems, data tapes, DVDs, CDs, flash
drives, telecommunications and check processing equipment and any other electronic storage media leased by the Failed Bank at Bank Closing Date which is, was, or could have been used by the Failed Bank in connection with data management activities.

 “Liabilities Assumed” has the meaning provided in Section 2.1. 

“Lien” means any mortgage, lien, pledge, charge, assignment for security purposes, security interest or encumbrance of any
kind with respect to an Acquired Asset, including any conditional sale agreement or capital lease or other title retention agreement relating to such Acquired Asset. 

“Loan” or “Loans” means, individually or collectively, all of the following owed to or held by the Failed
Bank as of the Bank Closing Date: 
 (a) loans (including loans which have been charged off the Failed Bank Records in whole
or in part prior to and including the Bid Valuation Date), participation agreements, interests in participations, overdrafts of customers (including but not limited to overdrafts made pursuant to an overdraft protection plan or similar extensions of
credit in connection with a deposit account), revolving commercial lines of credit, home equity lines of credit, Commitments, United States and/or State-guaranteed student loans and lease financing contracts; 

(b) all Liens, rights (including rights of set-off), remedies, powers, privileges, demands, claims, priorities, equities and
benefits owned or held by, or accruing or to accrue to or for the benefit of, the holder of the obligations or instruments referred to in clause (a) above, including but not limited to those arising under or based upon Credit Documents,
casualty insurance policies and binders, standby letters of credit, mortgagee title insurance policies and binders, payment bonds and performance bonds at any time and from time to time existing with respect to any of the obligations or instruments
referred to in clause (a) above; and 
 (c) all amendments, modifications, renewals, extensions, refinancings and
refundings of or for any of the foregoing. 

  

					
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 “New Loan” means a Loan made by the Failed Bank after the Bid Valuation Date
that is not a continuation, amendment, modification, renewal, extension, refinancing, restructuring or refunding of or for any then-existing Loan. 

“Obligor” means each Person liable for the full or partial payment or performance of any Loan, whether such Person is
obligated directly, indirectly, primarily, secondarily, jointly or severally. 
 “Optional Loan Pool” means a grouping of
various assets owned by the Failed Bank and offered to the Assuming Institution, as referenced in the Bid Form and described in the Information Package. Any continuation, amendment, modification, renewal, extension, refinancing, restructuring or
refunding of or for any asset that was part of an Optional Loan Pool will remain part of that Optional Loan Pool. No asset may be moved between Optional Loan Pools. An asset that had been collateral securing a Loan that is part of an Optional Loan
Pool remains part of that Optional Loan Pool. Any name of, or designation for, any Optional Loan Pool is for convenient reference and may not reflect the quality or nature of the assets that are part of that Optional Loan Pool. 

“Other Real Estate” means all interests in real estate (other than Bank Premises and Fixtures), including but not limited to
mineral estates, leasehold rights, condominium and cooperative interests, easements, air rights, water rights, and development rights that are owned by the Failed Bank as of Bid Valuation Date. 

“Other Real Estate Subsidiaries” means those Subsidiaries listed on the Bid Form, if any. 

“Owned Data Management Equipment” means any equipment, computer hardware, computer software, computer networking equipment,
printers, fax machines, copiers, document scanners, data tape systems, data tapes, DVDs, CDs, flash drives, telecommunications and check processing equipment and any other electronic storage media owned by the Failed Bank at Bank Closing Date which
is, was, or could have been used by the Failed Bank in connection with data management activities. 
 “Payment Date” means
the first Business Day after the Bank Closing Date. 
 “Person” means any individual, corporation, partnership, joint
venture, association, limited liability company, limited liability partnership, joint-stock company, trust, unincorporated organization, or government or any agency or political subdivision thereof, excluding the Corporation. 

“Personal Computer(s)” means computers based on a microprocessor generally designed to be used by one person at a time and
which usually store informational data on that computer’s internal hard drive or attached peripheral, and associated peripherals (such as keyboard, mouse, etc.). A personal computer can be found in various configurations such as laptops, net
books, and desktops. 

  

					
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 “Primary Indemnitor” means any Person (other than the Assuming Institution or
any of its Affiliates) who is obligated to indemnify or insure, or otherwise make payments (including payments on account of claims made against) to or on behalf of any Person in connection with the claims covered under Article XII, including
without limitation any insurer issuing any directors and officers liability policy or any Person issuing a financial institution bond or banker’s blanket bond. 

“Pro Forma” means a balance sheet that reflects a reasonably accurate financial statement of the Failed Bank through the Bank
Closing Date and serves as a basis for the opening entries of both the Assuming Institution and the Receiver. 
 “Proprietary
Software” means computer software developed for and owned by the Failed Bank for its own purpose and use. 
 “Put
Date” has the meaning set forth in Section 3.4(d). 
 “Put Notice” has the meaning set forth in
Section 3.4(c). 
 “Qualified Beneficiaries” has the meaning set forth in Section 4.12. 

“Qualified Financial Contract” means a qualified financial contract as defined in 12 U.S.C. § 1821(e)(8)(D). 

“Receiver” has the meaning set forth in the introduction to this Agreement. 

“Related Liability” with respect to any Acquired Asset means any liability existing and reflected on the Failed Bank Records
as of the Bank Closing Date for (i) indebtedness secured by mortgages, deeds of trust, chattel mortgages, security interests or other liens on or affecting such Acquired Asset, (ii) ad valorem taxes applicable to such Acquired Asset and
(iii) any other obligation determined by the Receiver to be directly related to such Acquired Asset. 
 “Related Liability
Amount” with respect to any Related Liability on the books of the Assuming Institution, means the amount of such Related Liability as stated on the Failed Bank Records of the Assuming Institution (as maintained in accordance with generally
accepted accounting principles) as of the date as of which the Related Liability Amount is being determined. With respect to a liability that relates to more than one Acquired Asset, the amount of such Related Liability shall be allocated among such
Acquired Assets for the purpose of determining the Related Liability Amount with respect to any one of such Acquired Assets. 
 Such
allocation shall be made by specific allocation, where determinable, and otherwise shall be pro rata based upon the dollar amount of such Acquired Assets stated on the Failed Bank Records of the entity that owns such Acquired Asset. 

“Repurchase Price” means, an amount equal to the sum of (i) the purchase price of the Acquired Asset as determined
pursuant to Section 3.2 and either (ii) minus the pro rata Acquired Asset discount or plus the pro rata Acquired Asset premium, if any, (ii) adjusted (A) for any 

  

					
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advances and interest on such Acquired Asset after the Bank Closing Date and (B) minus the total amount received by the Assuming Institution for such Acquired Asset after the Bank Closing
Date, regardless of how applied (iii) plus total disbursements of principal made by the Receiver not otherwise included in the Book Value. For (x) New Loans, Deposit Secured Loans and Eligible Overdrafts put back to the Receiver pursuant
to Section 3.4 or (y) Acquired Assets sold pursuant to Section 3.7 and repurchased by the Receiver pursuant to Section 3.6, the Repurchase Price shall not take into account the pro rata Acquired Asset discount or premium, if any.
The Repurchase Price for Eligible Overdrafts shall include adjustments for credits or deposits received after the Bank Closing Date and prior to the date of put back.  

“Safe Deposit Boxes” means the safe deposit boxes of the Failed Bank, if any, including the removable safe deposit boxes and
safe deposit stacks in the Failed Bank’s vault(s), all rights and benefits under rental agreements with respect to such safe deposit boxes, and all keys and combinations thereto. 

“Settlement Date” means the first Business Day immediately prior to the day which is three hundred sixty-five (365) days
after the Bank Closing Date, or such other date prior thereto as may be agreed upon by the Receiver and the Assuming Institution. The Receiver, in its discretion, may extend the Settlement Date. 

“Settlement Interest Rate” means, for the first calendar quarter or portion thereof during which interest accrues, the rate
determined by the Receiver to be equal to the investment rate on twenty-six (26)-week United States Treasury Bills as published on the Bank Closing Date by the United States Treasury on the TreasuryDirect.gov website; provided, that if no such
Investment Rate is published the week of the Bank Closing Date, the investment rate for such Treasury Bills most recently published by the United States Treasury on TreasuryDirect.gov prior to the Bank Closing Date shall be used. Thereafter, the
rate shall be adjusted to the rate determined by the Receiver to be equal to the Investment Rate on such Treasury Bills in effect as of the first day of each succeeding calendar quarter during which interest accrues as published by the United States
Treasury on the TreasuryDirect.gov website. 
 “Specialty Assets” means assets that have a greater value than more
traditional furniture and equipment owned by the Failed Bank and reflected on the Failed Bank Records as of the Bank Closing Date and located on or at Bank Premises, including without limitation fine art and high end decorative art; classic and
antique motor vehicles; rare books; rare coins; airplanes; boats; jewelry; collectible firearms; cultural artifacts; sculptures; Proprietary Software; and any other items that typically cannot be appraised by a Furniture and Equipment appraiser.
Specialty Assets does not include any repossessed collateral. 
 “Subsequently Occupied Space” has the meaning set forth in
Section 4.6(f). 
 “Subsidiary” has the meaning set forth in § 3(w)(4) of the Federal Deposit Insurance Act, 12
U.S.C. § 1813(w)(4), as amended. 
 “Underserved Area” means a census track designated as an underserved middle-income
nonmetropolitan track on the most recent List of Middle-Income Non-Metropolitan Distressed or Underserved Geographies as published by the Federal Financial Institutions Examination Council (“FFIEC”) on the FFIEC website. A list of Bank
Premises, if any, located in an Underserved Market is attached as Schedule 4.1(b). 

  

					
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 ARTICLE II. ASSUMPTION OF LIABILITIES. 

2.1. Liabilities Assumed by Assuming Institution. The Assuming Institution expressly assumes at Book Value
(subject to adjustment pursuant to Article VIII) and agrees to pay, perform and discharge, all of the following liabilities of the Failed Bank as of the Bank Closing Date, except as otherwise provided in this Agreement (such liabilities referred to
as “Liabilities Assumed”): 
 (a) Assumed Deposits, except those Deposits specifically listed on Schedule 2.1(a);
provided, that as to any Deposits of public money which are Assumed Deposits, the Assuming Institution agrees to properly secure such Deposits with such Acquired Assets as appropriate which, prior to the Bank Closing Date, were pledged as security
by the Failed Bank, or with assets of the Assuming Institution, if such securing Acquired Assets, if any, are insufficient to properly secure such Deposits; 

(b) liabilities for indebtedness incurred by the Failed Bank, reflected on the Accounting Records of the Failed Bank on the Bank Closing
Date, and secured by any perfected Lien on or affecting any Acquired Asset; provided, that the amount of any liability assumed pursuant to this Section 2.1(b) (x) shall be limited to the market value (as determined by the Receiver) of the
Acquired Assets securing such liability and (y) is not subject to adjustment pursuant to Article VIII; 
 (c) all borrowings from, and
obligations and indebtedness to Federal Reserve Banks and Federal Home Loan Banks, if any, whether currently owed, or conditional or not yet matured, including but not limited to, if applicable, (i) advances, including principal, interest, and
any prepayment fees, costs and expenses; (ii) letters of credit, including any reimbursement obligations; (iii) acquired member assets programs, including representations, warranties, credit enhancement obligations and servicing
obligations; (iv) affordable housing programs, including retention agreements and other contracts and monitoring obligations; (v) swaps and other derivatives; and (vi) safekeeping and custody agreements, provided, that the assumption
of any liability pursuant to this Section 2.1(c) shall be limited to the market value of the assets securing such liability as determined by the Receiver; and overdrafts, debit balances, service charges, reclamations and adjustments to accounts
with the Federal Reserve Banks as reflected on the books and records of any such Federal Reserve Bank within ninety (90) days after the Bank Closing Date, if any; 

(d) ad valorem taxes (prorated through the Bank Closing Date or with respect to Bank Premises prorated through the date the Receiver receives
the purchase price for such Bank Premises from the Assuming Institution), whether or not reflected on the Failed Bank Records, applicable to any Acquired Asset; provided, that the assumption of any ad valorem taxes pursuant to this
Section 2.1(d) shall be limited to an amount equal to the market value of the Acquired Asset to which such taxes apply as determined by the Receiver; 

(e) liabilities, if any, for federal funds purchased, repurchase agreements and overdrafts in accounts maintained with other depository
institutions (including any accrued and 

  

					
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unpaid interest thereon computed to and including the Bank Closing Date); provided, that the assumption of any liability pursuant to this Section 2.1(e) shall be limited to the market value
of the Acquired Assets securing such liability as determined by the Receiver; 
 (f) United States Treasury tax and loan note option
accounts, if any; 
 (g) liabilities for any acceptance or commercial letter of credit provided, that the assumption of any liability
pursuant to this Section 2.1(g) shall be limited to the market value of the Acquired Assets securing such liability as determined by the Receiver; 

(h) liabilities for any “standby letters of credit” as defined in 12 C.F.R. § 337.2(a) issued by the Failed Bank in connection
with an Acquired Asset, but excluding any other standby letters of credit; 
 (i) duties and obligations assumed pursuant to this Agreement
including without limitation those relating to the Failed Bank Records, credit card business, debit card business, stored value and gift card business, overdraft protection plans, safe deposit business, safekeeping business and trust business, if
any; 
 (j) liabilities, if any, for Commitments with respect to Loans that are purchased pursuant to this Agreement; 

(k) liabilities, if any, for amounts owed to any Acquired Subsidiary; 

(l) liabilities, if any, with respect to Qualified Financial Contracts; 

(m) [reserved]; 

(n) any deferred revenue, income or fees recorded on the general ledger of the Failed Bank as of the Bank Closing Date
attributable to any business assumed pursuant to Section 4.2, 4.3, 4.4, or 4.5 of this Agreement, excluding any deferred income or revenue relative to FASB 91 – Loan Fees and Costs associated with originating or acquiring Loans and initial
direct costs of leases. 
 2.2. Interest on Deposit Liabilities. The Assuming Institution agrees that, from and
after the Bank Closing Date, it will accrue and pay interest on Assumed Deposits pursuant to Section 2.1 at a rate(s) it shall determine; provided, that for non-transaction Deposit liabilities such rate(s) shall not be less than the lowest rate
offered by the Assuming Institution to its depositors for non-transaction deposit accounts. The Assuming Institution shall permit each depositor to withdraw, without penalty for early withdrawal, all or any portion of such depositor’s Deposit,
whether or not the Assuming Institution elects to pay interest in accordance with any deposit agreement formerly existing between the Failed Bank and such depositor; and further provided, that if such Deposit has been pledged to secure an obligation
of the depositor or other party, any withdrawal thereof shall be subject to the terms of the agreement governing such pledge. The Assuming Institution shall give notice to such depositors as provided in Section 5.3 of the rate(s) of interest
which it has determined to pay and of such withdrawal rights. 

  

					
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 2.3. Unclaimed Deposits. 

(a) Final Legal Notice. Fifteen (15) months following the Bank Closing Date, the Assuming Institution will provide the Receiver a
listing of all deposit accounts, including the type of account, not claimed by the depositor. The Receiver will review the list and authorize the Assuming Institution to act on behalf of the Receiver to send a Final Legal Notice in a form
substantially similar to Exhibit 2.3A (the “Final Legal Notice”) to the owner(s) of the unclaimed deposits reminding them of the need to claim or arrange to continue their account(s) with the Assuming Institution. The
Assuming Institution will send the Final Legal Notice to the depositors within thirty (30) days following notification of the Receiver’s authorization. The Assuming Institution will prepare an Affidavit of Mailing in a form substantially
similar to Exhibit 2.3B and will forward the Affidavit of Mailing to the Receiver after mailing out the Final Legal Notice to the owner(s) of unclaimed deposit accounts. 

(b) Unclaimed Deposits. If, within eighteen (18) months after the Bank Closing Date, any depositor of the Failed Bank does not
claim or arrange to continue such depositor’s Assumed Deposits at the Assuming Institution, the Assuming Institution shall, within fifteen (15) Business Days after the end of such eighteen (18) month period, (i) refund to the
Receiver the full amount of each such Deposit (without reduction for service charges), (ii) provide to the Receiver a schedule of all such refunded Deposits in such form as may be prescribed by the Receiver, and (iii) assign, transfer,
convey, and deliver to the Receiver, all right, title and interest of the Assuming Institution in and to the Failed Bank Records previously transferred to the Assuming Institution and other records generated or maintained by the Assuming Institution
pertaining to such Deposits. During such eighteen (18) month period, at the request of the Receiver, the Assuming Institution promptly shall provide to the Receiver schedules of unclaimed Deposits in such form as may be prescribed by the
Receiver. 
 2.4. Employee Plans. Except as provided in Section 4.12, the Assuming Institution shall have
no liabilities, obligations or responsibilities under the Failed Bank’s health care, bonus, vacation, pension, profit sharing, deferred compensation, 401k or stock purchase plans or similar plans, if any, unless the Receiver and the Assuming
Institution agree otherwise subsequent to the date of this Agreement. 
 ARTICLE III. PURCHASE OF ASSETS. 

3.1. Assets Purchased by Assuming Institution. Subject to Sections 3.5 and 3.6, the Assuming Institution hereby
purchases from the Receiver, and the Receiver hereby sells, assigns, transfers, conveys, and delivers to the Assuming Institution, all right, title, and interest of the Receiver in and to all of the following: 

(a) cash and receivables from depository institutions (including Federal Reserve Banks and Federal Home Loan Banks), including cash items in
the process of collection, plus any accrued interest thereon computed to and including Bank Closing Date; 
 (b) securities (other than the
capital stock of Subsidiaries of the Failed Bank and those securities referred to in Section 3.5(l), if any), plus any accrued interest thereon computed to and including Bank Closing Date; 

  

					
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 (c) federal funds sold and repurchase agreements, if any, including any accrued interest thereon
computed to and including Bank Closing Date; 
 (d) Owned Data Management Equipment and Personal Computers; 

(e) Deposit Secured Loans, if any (including any such Deposit Secured Loan that the Failed Bank charged-off in whole or in part during the
period from the date after the Bid Valuation Date and up to and including Bank Closing Date); 
 (f) any credit card business (including
all outstanding extensions of credit), Safe Deposit Boxes and related business, safekeeping business and trust business, subject to Section 4.2, 4.3, 4.4 or 4.5, respectively; 

(g) Failed Bank Records and other documents as provided in Section 6.1; 

(h) reserved; 
 (i) amounts
owed to the Failed Bank by any Acquired Subsidiary; 
 (j) assets securing Deposits of public money, to the extent not otherwise purchased
hereunder; 
 (k) overdrafts of customers (including but not limited to overdrafts made pursuant to an overdraft protection plan or similar
extensions of credit in connection with a deposit account); 
 (l) rights, if any, with respect to Qualified Financial Contracts; 

(m) reserved; 
 (n) the Loans
and other assets in the Optional Loan Pools listed on Schedule 3.1(n); 
 (o) reserved; 

(p) any asset that was fully charged-off by the Failed Bank prior to the Bid Valuation Date (including any subsequent judgments arising
therefrom) that was secured by collateral that was (i) foreclosed upon by the Failed Bank and (ii) is an Acquired Asset; and 

(q) New Loans. 
 The Assuming Institution
purchases all Acquired Assets subject to all liabilities for indebtedness collateralized by Liens affecting such Acquired Assets to the extent provided in Section 2.1. 

3.2. Asset Purchase Price. 

(a) Determination of Asset Purchase Price. All Acquired Assets and assets of the Failed Bank subject to an option to purchase by the
Assuming Institution shall be purchased for the amount, or the amount resulting from the method specified for determining the amount, as specified on Schedule 3.2, except as otherwise may be provided herein. Any Acquired Asset

  

					
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for which no purchase price is specified on Schedule 3.2 or otherwise herein shall be purchased at its Book Value. The purchase price for Acquired Subsidiaries shall be adjusted pursuant
to Section 4.6(i)(iv), if applicable. 
 (b) Purchase Price for Securities. The purchase price for any security (other than the
capital stock of any Acquired Subsidiary and Federal Home Loan Bank stock) purchased under Section 3.1 by the Assuming Institution shall consist of the market price (as defined below) of the security as of the Bank Closing Date, multiplied by
the bank’s ownership interest in the security (see Calculation of Purchase Price below) and shall include accrued interest, where applicable, as noted below. 

(i) Definition of Market Price: The market price for any security shall be (i) the market price for that security
quoted at the close of the trading day effective on the Bank Closing Date as published electronically by Bloomberg, L.P., or alternatively, at the discretion of the Receiver, by IDC/Financial Times (FT) Interactive Data; (ii) provided that if
such market price is not available for such security, the Assuming Institution will submit a written purchase price bid for such security within three days of notification/bid request by the Receiver (unless a different time period is agreed to by
the Assuming Institution and the Receiver) and the Receiver, in its sole and absolute discretion, will accept or reject each such purchase price bid; (iii) further provided that in the absence of an acceptable bid from the Assuming Institution,
or in the event that a security is deemed essential to the Receiver as determined by the Receiver in its discretion (see Section 3.6 Retention or Repurchase of Assets Essential to the Receiver) such security shall not pass to the Assuming
Institution and shall be deemed to be an excluded asset hereunder and listed on Schedule 3.5(l). 
 (ii)
Calculation of Purchase Price. The bank’s ownership interest in a security will be quantified one of two ways: (i) number of shares or other units, as applicable (in the case of equity securities) or (ii) par value or
notational amount, as applicable (in the case of non-equity securities). As a result, the purchase price (except where determined pursuant to clause (ii) of the preceding paragraph) shall be calculated one of two ways, depending on whether or
not the security is an equity security: (i) the purchase price for an equity security shall be calculated by multiplying the number of shares or other units by the applicable market price per unit; and (ii) the purchase price for a
non-equity security shall be an amount equal to the applicable market price (expressed as a decimal), multiplied by the par value for such security (based on the payment factor most recently widely available). The purchase price also shall include
accrued interest as calculated below (see Calculation of Accrued Interest), except to the extent the parties may otherwise expressly agree, pursuant to clause (ii) of the preceding paragraph. If the factor used to determine the par value of any
security for purposes of calculating the purchase price, is not for the period in which the Bank Closing Date occurs, then the purchase price for that security shall be subject to adjustment post-closing based on a “cancel and correct”
procedure. Under this procedure, after such current factor becomes publicly available, the Receiver will recalculate the purchase price utilizing the current factor and related interest rate, and will notify the Assuming Institution of any
difference and of the applicable amount due from one party to the other. Such amount will then be paid as part of the settlement process pursuant to Article VIII. 

(iii) Calculation of Accrued Interest for Securities: Accrued interest shall be calculated for a non-equity security by
multiplying the interest rate (expressed as a decimal point) paid on the security as then most recently publicly available, by the most recent par value (or notational amount, as applicable) of that security, multiplied by the number of days from
and including the first interest day of the accrual period in which the Bank Closing Date occurs, through the Bank Closing Date. 

  

					
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 (c) Purchase Price for Qualified Financial Contracts. Qualified Financial Contracts, if
any, shall be purchased at market value determined in accordance with the terms of Exhibit 3.2(c). Any costs associated with such valuation shall be shared equally by the Receiver and the Assuming Institution. 

3.3. Manner of Conveyance; Limited Warranty; Nonrecourse; Etc. THE CONVEYANCE OF ALL ACQUIRED ASSETS, INCLUDING REAL
AND PERSONAL PROPERTY INTERESTS, PURCHASED BY THE ASSUMING INSTITUTION UNDER THIS AGREEMENT SHALL BE MADE, AS NECESSARY, BY RECEIVER’S DEED OR RECEIVER’S BILL OF SALE, “AS IS”, “WHERE IS”,
WITHOUT RECOURSE AND, EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED IN THIS AGREEMENT, WITHOUT ANY WARRANTIES WHATSOEVER WITH RESPECT TO SUCH ACQUIRED ASSETS, EXPRESS OR IMPLIED, WITH RESPECT TO TITLE, VALUE, COLLECTIBILITY, GENUINENESS, ENFORCEABILITY,
DOCUMENTATION, CONDITION OR FREEDOM FROM LIENS OR ENCUMBRANCES (IN WHOLE OR IN PART), OR ANY OTHER MATTERS. 

3.4. Puts of Assets to the Receiver. 

(a) Puts Within 30 Days or 40 Days After the Bank Closing Date. 

(i) During the thirty (30)-day period following the Bank Closing Date (which thirty (30)-day period may be extended in writing
in the sole and absolute discretion of the Receiver for any Loan), in accordance with this Section 3.4, the Assuming Institution may require the Receiver to purchase (x) any Deposit Secured Loan transferred to the Assuming Institution
pursuant to Section 3.1 which is not fully secured by Assumed Deposits or deposits at other insured depository institutions due to either insufficient Assumed Deposit or deposit collateral or deficient documentation regarding such collateral or
(y) any New Loan; provided that, the Assuming Institution may not require the purchase of a Deposit Secured Loan that is secured by an Assumed Deposit until any Deposit setoff determination, whether voluntary or involuntary, has been made. 

(ii) During the forty (40)-day period following the Bank Closing Date, the Assuming Institution may require the Receiver to
purchase, any Eligible Overdraft transferred to the Assuming Institution pursuant to Section 3.1 which existed on the thirtieth (30th) day following the Bank Closing Date. 

(iii) Notwithstanding the foregoing, the Assuming Institution may not require the Receiver to purchase any Loan pursuant to
Section 3.4(a) if (x) the Obligor with respect to such Loan is an Acquired Subsidiary or (y) the Assuming Institution has: 

(A) made any advance in accordance with the terms of a Commitment or otherwise with respect to such Loan; 

  

					
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 (B) taken any action that caused an increase in the amount of a Related
Liability with respect to such Loan; 
 (C) created or permitted to be created any Lien on such Loan which secures
indebtedness for money borrowed or which constitutes a conditional sales agreement, capital lease or other title retention agreement; 

(D) entered into, agreed to make, grant or permit, or made, granted or permitted any modification or amendment to, any waiver
or extension with respect to, or any renewal, refinancing or refunding of, such Loan or related Credit Documents or collateral, including, without limitation, any act or omission which diminished such collateral; or 

(E) sold, assigned or transferred all or a portion of such Loan to a third party (whether with or without recourse). 

(b) Puts Prior to the Settlement Date. During the period from the Bank Closing Date to and including the Business Day immediately
preceding the Settlement Date, the Assuming Institution may require the Receiver to purchase any Acquired Asset which the Assuming Institution can establish is evidenced by forged or stolen instruments as of the Bank Closing Date; provided that the
Assuming Institution may not require the Receiver to purchase any Acquired Asset with respect to which the Assuming Institution has taken any action referred to in Section 3.4(a)(iii) with respect to such Acquired Asset. The Assuming
Institution shall transfer all such Acquired Assets to the Receiver without recourse, and shall indemnify the Receiver against any and all claims of any Person claiming by, through or under the Assuming Institution with respect to any such Acquired
Asset, as provided in Section 12.4. 
 (c) Notices to the Receiver. If the Assuming Institution elects to require the Receiver
to purchase one or more Acquired Assets pursuant to this Section 3.4, the Assuming Institution shall deliver to the Receiver a notice (“Put Notice”) which shall include: 

(i) a list of all Acquired Assets that the Assuming Institution requires the Receiver to purchase; 

(ii) a list of all Related Liabilities with respect to the Acquired Assets identified in the Put Notice; and 

(iii) a statement of the estimated Repurchase Price of each Acquired Asset identified in the Put Notice as of the applicable
Put Date (defined below). 
 The Put Notice shall be in the form prescribed by the Receiver or such other form to which the Receiver has
consented. As provided in Section 9.6, the Assuming Institution shall deliver to the Receiver all documents, Credit Files and additional information relating to the subject matter of the Put Notice as the Receiver may request and shall provide
the Receiver with full access to all other relevant books and records. 

  

					
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 (d) Purchase by Receiver. The Receiver shall purchase Acquired Assets that are specified
in the Put Notice and shall assume Related Liabilities with respect to such Acquired Assets. The transfer of such Acquired Assets and Related Liabilities shall be effective as of a date determined by the Receiver, which date shall not be later than
thirty (30) days after receipt by the Receiver of the Put Notice (the “Put Date”). 
 (e)
Purchase Price and Payment Date. Each Acquired Asset purchased by the Receiver pursuant to this Section 3.4 shall be purchased at a price equal to the Repurchase Price of such Acquired Asset minus the Related Liability Amount applicable
to such Acquired Asset, in each case determined as of the applicable Put Date. If the difference between the Repurchase Price and the Related Liability Amount is positive, then the Receiver shall pay to the Assuming Institution the amount of the
difference; if the difference between such amounts is negative, then the Assuming Institution shall pay to the Receiver the amount of the difference. The Assuming Institution or the Receiver, as the case may be, shall pay the amount determined
pursuant to this Section 3.4 not later than the twentieth (20th) Business Day following the applicable Put Date, together with interest on such amount at the Settlement Interest Rate for the period from and including such Put Date to and
including the day preceding the date on which payment is made. 
 (f) Servicing. The Assuming Institution shall administer and
manage any Acquired Asset subject to purchase by the Receiver in accordance with usual and prudent banking standards and business practices until the Receiver purchases such Acquired Asset. 

(g) Reversals. If the Receiver purchases an Acquired Asset (and assumes the Related Liability) that it is not required to purchase
pursuant to this Section 3.4, the Assuming Institution shall repurchase such Acquired Asset (and assume such Related Liability) from the Receiver at a price computed so as to achieve the same economic result as would apply if the Receiver had
never purchased such Acquired Asset pursuant to this Section 3.4. 
 (h) Transfer to Receiver without Recourse. The Assuming
Institution shall transfer any Acquired Asset pursuant to this Section 3.4 to the Receiver without recourse and shall indemnify the Receiver against any and all claims of any Person claiming by, through or under the Assuming Institution with
respect to any such Acquired Asset, as provided in Section 12.4. 
 3.5. Assets Not Purchased by Assuming
Institution. The Assuming Institution does not purchase, acquire or assume, or (except as otherwise expressly provided in this Agreement) obtain an option to purchase, acquire or assume under this Agreement: 

(a) any financial institution bonds, banker’s blanket bonds, or public liability, fire, extended coverage insurance policy, bank owned
life insurance or any other insurance policy of the Failed Bank, or premium refund, unearned premium derived from cancellation, or any proceeds payable with respect to any of the foregoing; 

(b) any interest, right, action, claim, or judgment against (i) any officer, director, employee, accountant, attorney, or any other
Person employed or retained by the Failed Bank or any Subsidiary of the Failed Bank on or prior to the Bank Closing Date arising out of any act or omission of such Person in such capacity, (ii) any underwriter of financial institution

  

					
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bonds, banker’s blanket bonds or any other insurance policy of the Failed Bank, (iii) any shareholder or holding company of the Failed Bank, or (iv) any other Person whose action
or inaction may be related to any loss (exclusive of any loss resulting from such Person’s failure to pay on a Loan made by the Failed Bank) incurred by the Failed Bank; provided that for the purposes hereof, the acts, omissions or other events
giving rise to any such claim shall have occurred on or before the Bank Closing Date, regardless of when any such claim is discovered and regardless of whether any such claim is made with respect to a financial institution bond, banker’s
blanket bond, or any other insurance policy of the Failed Bank in force as of the Bank Closing Date; 
 (c) prepaid regulatory assessments
of the Failed Bank, if any; 
 (d) legal or equitable interests in tax receivables of the Failed Bank, if any, including any claims arising
as a result of the Failed Bank having entered into any agreement or otherwise being joined with another Person with respect to the filing of tax returns or the payment of taxes; 

(e) amounts reflected on the Failed Bank Records as of the Bank Closing Date as a general or specific loss reserve or contingency account, if
any; 
 (f) leased or owned Bank Premises and leased or owned Fixtures, Proprietary Software, Furniture and Equipment located on leased or
owned Bank Premises, and Specialty Assets located on leased or owned Bank Premises, if any; provided that the Assuming Institution does obtain an option under Sections 4.6, 4.7 or 4.8, as the case may be, with respect thereto; 

(g) owned Bank Premises which the Receiver, in its discretion, determines may contain environmentally hazardous substances; 

(h) any “goodwill,” as such term is defined in the instructions to the report of condition prepared by banks examined by the
Corporation in accordance with 12 C.F.R. § 304.3, and other intangibles (other than intellectual property); 
 (i) any criminal
restitution or forfeiture orders issued in favor of the Failed Bank; 
 (j) any and all prepaid fees or any other income as shown on the
Failed Bank Records, but not taken into income as of the Bank Closing Date, associated with a line of business of the Failed Bank which is not assumed pursuant to this Agreement; 

(k) assets essential to the Receiver in accordance with Section 3.6; 

(l) any banker’s bank stock, and the securities listed on the attached Schedule 3.5(l) and assets shown as specifically excluded
from Pools on Schedule 3.1(n); 
 (m) reserved; 

(n) prepaid accounts associated with any contract or agreement that the Assuming Institution either does not directly assume pursuant to the
terms of this Agreement nor has an option to assume under Section 4.8; 

  

					
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 (o) except with respect to any Federal Home Loan Bank loans, any contract pursuant to which the
Failed Bank provides loan servicing for others; 
 (p) all assets that were fully charged-off by the Failed Bank prior to the Bid Valuation
Date, including any subsequent judgments arising therefrom, other than any asset that was secured by collateral that was (i) foreclosed upon by the Failed Bank and (ii) is an Acquired Asset; 

(q) any Loan that was secured by collateral that is an asset retained by the Receiver under this Agreement; and 

(r) all assets related to any plan of the Failed Bank described in Section 2.4 or any plan of the type described in Section 2.4
under which the Failed Bank has any liability, obligation or responsibility, unless the Assuming Institution assumes liability, obligations or responsibilities under such plan subsequent to the date of this Agreement; and 

(s) any asset not shown on the Failed Bank Records as of the Bank Closing Date and discovered after the Settlement Date.  

3.6. Retention or Repurchase of Assets Essential to Receiver. 

(a) The Receiver may refuse to sell to the Assuming Institution, or the Assuming Institution agrees, at the request of the Receiver set forth
in a written notice to the Assuming Institution, to sell, assign, transfer, convey, and deliver to the Receiver, all of the Assuming Institution’s right, title and interest in and to, any Acquired Asset or asset essential to the Receiver as
determined by the Receiver in its discretion (together with all Credit Documents evidencing or pertaining thereto), which may include any Acquired Asset or asset that the Receiver determines to be: 

(i) made to an officer, director, or other Person engaging in the affairs of the Failed Bank, its Subsidiaries or Affiliates
or any related entities of any of the foregoing; 
 (ii) the subject of any investigation relating to any claim with respect
to any item described in Section 3.5(a) or (b), or the subject of, or potentially the subject of, any legal proceedings; 

(iii) made to a Person who is an Obligor on a loan owned by the Receiver or the Corporation in its corporate capacity or its
capacity as receiver of any institution; 
 (iv) secured by collateral which also secures any asset owned by the Receiver;
or 
 (v) related to any asset of the Failed Bank not purchased by the Assuming Institution under this Article III or any
liability of the Failed Bank not assumed by the Assuming Institution under Article II. 

  

					
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 (b) Each such Acquired Asset or asset purchased by the Receiver shall be purchased at a price
equal to the Repurchase Price thereof less the Related Liability Amount with respect to any Related Liabilities related to such Acquired Asset or asset, in each case determined as of the date of the notice provided by the Receiver pursuant to
Section 3.6(a). The Receiver shall pay the Assuming Institution not later than the twentieth (20th) Business Day following receipt of related Credit Documents and Credit Files together with interest on such amount at the Settlement
Interest Rate for the period from and including the date of receipt of such documents to and including the day preceding the day on which payment is made. The Assuming Institution agrees to administer and manage each such Acquired Asset or asset in
accordance with usual and prudent banking standards and business practices until each such Acquired Asset or asset is purchased by the Receiver. All transfers with respect to Acquired Asset or assets under this Section 3.6 shall be made as
provided in Section 9.6. The Assuming Institution shall transfer all such Acquired Assets or assets and Related Liabilities to the Receiver without recourse, and shall indemnify the Receiver against any and all claims of any Person claiming by,
through or under the Assuming Institution with respect to any such Acquired Asset or asset, as provided in Section 12.4. 

3.7. Receiver’s Offer to Sell Withheld Loans. For the period of thirty (30) days commencing the day
after the Bank Closing Date, the Receiver may, in its sole and absolute discretion, sell any Loan withheld from sale pursuant to Section 3.5 or Section 3.6 of this Agreement that the Assuming Institution desires to purchase. Any Loan sold
pursuant to this section will, at the sole and absolute discretion of the Receiver, either (x) be treated as if initially sold pursuant to Section 3.1 of this Agreement, or (y) sold pursuant to the standard loan sale agreement used by
the Receiver for the sale of loan pools. 
 (a) If treated as if initially sold pursuant to Section 3.1 of this Agreement, the
purchase price for such Loan shall be the Book Value as of the Bank Closing Date, adjusted (i) for any advances and interest on such Loan after the Bank Closing Date, (ii) by subtracting the total amount received by the Assuming
Institution for such Loan after the Bank Closing Date, and (iii) by adding total disbursements of principal made by the Receiver and not otherwise included in the Book Value. The sale will be subject to all applicable terms of this Agreement,
except that any Loan purchased pursuant to this Section 3.7 shall not be included in the calculation of the pro rata Acquired Asset discount or pro rata Acquired Asset premium utilized for the repurchase of other Acquired Assets. Payment for
any such Loan will be handled through the settlement process pursuant to Article VIII. 
 (b) Any Loan sold pursuant to the standard loan
sale agreement shall be governed by and paid for in accordance with that document 
 ARTICLE IV. ASSUMPTION OF CERTAIN DUTIES AND OBLIGATIONS.

 4.1. Continuation of Banking Business. 

(a) Full Service Banking. For the period commencing on the first Business Day after the Bank Closing Date and ending one hundred and
eighty (180) days from the Bank Closing Date, the Assuming Institution will provide full service banking in the Failed Bank Assessment Area. At the option of the Assuming Institution, it may provide such full service banking at one or more Bank
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Failed Bank Assessment Area. The Assuming Institution may close or sell any Bank Premises during this period with the prior written consent of the Receiver (which consent may be withheld in
Receiver’s sole discretion) and after receipt of all necessary regulatory approvals, provided that the Assuming Institution (or its successors) continues to provide full service banking in the Failed Bank Assessment Area for the period required
to comply with this Section 4.1(a). 
 (b) Bank Premises Located in an Underserved Area. If a currently utilized Bank Premises
is located in an Underserved Area, the Receiver will not consent to the Assuming Institution’s closing or selling such Bank Premises, unless the Assuming Institution provides full service banking at one or more Bank Premises or Assuming
Institution branches located within in the same Underserved Area. 
 (c) Failure to Exercise Option to Purchase Bank Premises. If a
currently-utilized owned Bank Premises is located in an Underserved Area and the Assuming Institution does not exercise its option under Section 4.6(a) with respect to that Bank Premises, the Receiver will continue to rent any
such owned Bank Premises to the Assuming Institution for the amount provided in Section 4.6(e) in order to comply with Section 4.1(a). 

(d) Reserved.  

4.2. Credit Card Business. The Assuming Institution agrees to honor and perform, from and after the Bank Closing
Date, all duties and obligations with respect to the Failed Bank’s credit card business (including issuer or merchant acquirer) debit card business, stored value and gift card business, and/or processing related to credit cards, if any, and
assumes all extensions of credit or balances outstanding as of the Bank Closing Date with respect to these lines of business. The obligations undertaken pursuant to this Section do not include loyalty, reward, affinity, or other similar programs
related to the credit and debit card businesses.  
 4.3. Safe Deposit Business. The Assuming
Institution assumes and agrees to discharge, from and after the Bank Closing Date, in the usual course of conducting a banking business, the duties and obligations of the Failed Bank with respect to all Safe Deposit Boxes, if any, of the Failed Bank
and to maintain all of the necessary facilities for the use of such boxes by the renters thereof during the period for which such boxes have been rented and the rent therefor paid to the Failed Bank, subject to the provisions of the rental
agreements between the Failed Bank and the respective renters of such boxes; provided, that the Assuming Institution may relocate the Safe Deposit Boxes of the Failed Bank to any office of the Assuming Institution located in the Failed Bank
Assessment Area in which such Safe Deposit Boxes were located. The Safe Deposit Boxes shall be located and maintained in such Failed Bank Assessment Area for a minimum of one year from the Bank Closing Date. 

4.4. Safekeeping Business. The Receiver transfers, conveys and delivers to the Assuming Institution and the
Assuming Institution accepts all securities and other items, if any, held by the Failed Bank in safekeeping for its customers as of the Bank Closing Date. The Assuming Institution assumes and agrees to honor and discharge, from and after the Bank
Closing Date, the duties and obligations of the Failed Bank with respect to such securities and items held in safekeeping. The Assuming Institution shall provide to the Receiver written verification of all assets held by the Failed Bank for
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sixty (60) days after the Bank Closing Date. The assets held for safekeeping by the Failed Bank shall be held and maintained by the Assuming Institution in the Failed Bank Assessment Area
for a minimum of one year from the Bank Closing Date. At the option of the Assuming Institution, the safekeeping business may be provided at any or all of the Bank Premises, or at other premises within the Failed Bank Assessment Area. The Assuming
Institution shall be entitled to all rights and benefits which accrue after the Bank Closing Date with respect to securities and other items held in safekeeping. 

4.5. Trust Business. 

(a) Assuming Institution as Successor. The Assuming Institution shall, without further transfer, substitution, act or deed, to the
full extent permitted by law, succeed to the rights, obligations, properties, assets, investments, deposits, agreements, and trusts of the Failed Bank under trusts, executorships, administrations, guardianships, and agencies, and other fiduciary or
representative capacities, all to the same extent as though the Assuming Institution had assumed the same from the Failed Bank prior to the Bank Closing Date; provided, that any liability based on the misfeasance, malfeasance or nonfeasance of the
Failed Bank, its directors, officers, employees or agents with respect to the trust business is not assumed hereunder. 
 (b) Wills and
Appointments. The Assuming Institution shall, to the full extent permitted by law, succeed to, and be entitled to take and execute, the appointment to all executorships, trusteeships, guardianships and other fiduciary or representative
capacities to which the Failed Bank is or may be named in wills, whenever probated, or to which the Failed Bank is or may be named or appointed by any other instrument. 

(c) Transfer of Trust Business. In the event additional proceedings of any kind are necessary to accomplish the transfer of such trust
business, the Assuming Institution agrees that, at its own expense, it will take whatever action is necessary to accomplish such transfer. The Receiver agrees to use reasonable efforts to assist the Assuming Institution in accomplishing such
transfer. 
 (d) Verification of Assets. The Assuming Institution shall provide to the Receiver written verification of the assets
held in connection with the Failed Bank’s trust business within sixty (60) days after the Bank Closing Date. 

4.6. Bank Premises. 

(a) Option to Purchase. 

(i) Subject to Section 3.5, the Receiver hereby grants to the Assuming Institution an exclusive option for the period of
sixty (60) days commencing the day after the Bank Closing Date with respect to Bank Premises for which the Assuming Institution declined its option to purchase at a fixed price as shown on the Bid Form, and for a period of ninety
(90) days commencing the day after the Bank Closing Date with respect to all other owned Bank Premises to purchase any or all owned Bank Premises, including all Fixtures and all Furniture and Equipment located on or at the Bank Premises. The
Assuming Institution shall give written notice to the Receiver within the option period of its election to purchase or not to purchase any of the owned Bank Premises. Any purchase of such Bank Premises shall be effective as of the date the Receiver
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purchase price for such Bank Premises from the Assuming Institution, and such purchase shall be consummated as soon as practicable thereafter (and no later than the Settlement Date). 

(ii) The Receiver may, in its sole and absolute discretion, manage and maintain any owned Bank Premises with one or more
tenants (other than the Assuming Institution) during the period from the Bank Closing Date until the date the Receiver receives the purchase price for such Bank Premises from the Assuming Institution. 

(b) Option to Lease. The Receiver hereby grants to the Assuming Institution an exclusive option for the period of sixty (60) days
commencing the day after the Bank Closing Date to cause the Receiver to assign to the Assuming Institution any or all leases for leased Bank Premises, if any, to the extent such leases can be assigned; provided that the exercise of this option with
respect to any lease must be as to all premises or other property subject to such lease. To the extent the lease payments provided for in any assigned lease are minimal in relation to the current market rate, and the value of that difference is not
otherwise reflected in the purchase of the associated Fixtures, the Assuming Institution shall pay the Receiver the Fair Market Value of the Receiver’s interest in any such assigned lease. The Assuming Institution shall give notice to the
Receiver within the option period of its election to accept or not to accept an assignment of any or all leases (or enter into new leases in lieu thereof). The Assuming Institution shall assume all leases assigned (or enter into new leases in lieu
thereof) pursuant to this Section 4.6. 
 (c) Facilitation. The Receiver shall facilitate the assumption, assignment or
sublease of leases or the negotiation of new leases by the Assuming Institution; provided that neither the Receiver nor the Corporation shall be obligated to engage in litigation, make payments to the Assuming Institution or to any third party in
connection with facilitating any such assumption, assignment, sublease or negotiation or commit to any other obligations to third parties. 

(d) Notice of Surrender of Bank Premises. The Assuming Institution shall give the Receiver at least fifteen (15) days prior
written notice of its intent to surrender to the Receiver any Bank Premises with respect to which the Assuming Institution has not exercised the options provided in Sections 4.6(a) and 4.6(b). Any such notice shall designate the intended Bank
Premises Surrender Date and shall terminate the Assuming Institution’s option with respect to such Bank Premises. 
 (e) Occupancy
Costs. 
 (i) The Assuming Institution shall pay to the Receiver, or to appropriate third parties at the direction of
the Receiver, for the period from the Bank Closing Date until the Bank Premises Surrender Date, the following amounts: (A) for owned Bank Premises, the market rental value, as determined by the appraiser selected in accordance with the
definition of Fair Market Value, and all operating costs (provided, however, that, for owned Bank Premises the Assuming Institution elects to purchase under Section 4.6(a)(i), (1) the time period shall be from the Bank Closing Date until
the date the Receiver receives the purchase price for such Bank Premises from the Assuming Institution, and (2) the amount shall be limited to market rental value and operating costs 

  

					
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for the space not occupied by other tenants), and (B) for leased Bank Premises, all operating costs with respect thereto. The Assuming Institution shall comply with the terms of applicable
leases on leased Bank Premises, including without limitation the timely payment of all rent. Operating costs include, without limitation, all taxes, fees, charges, maintenance, utilities, insurance and assessments, to the extent not included in the
rental value or rent. 
 (ii) The Assuming Institution shall pay to the Receiver rent for all owned or leased Furniture and
Equipment, all owned or leased Fixtures and all Specialty Assets located on or at the Bank Premises for the period from the Bank Closing Date until the Bank Premises Surrender Date (provided, however, that, for owned Bank Premises the Assuming
Institution elects to purchase under Section 4.6(a)(i), (A) the time period shall be from the Bank Closing Date until the date the Receiver receives the purchase price for such Bank Premises from the Assuming Institution, and (B) the
amount shall be limited to rent for owned or leased Furniture and Equipment, owned or leased Fixtures and Specialty Assets located on or at the Bank Premises in the space not occupied by other tenants). Rent for such property owned by the Failed
Bank shall be the market rental value thereof, as determined by the Receiver within sixty (60) days after the Bank Closing Date. Rent for such property leased by the Failed Bank shall be an amount equal to any and all rent and other amounts
which the Receiver incurs or accrues as an obligation or is obligated to pay for such period pursuant to all leases and contracts with respect to such property. 

(iii) Subject to Section 4.1, if the Assuming Institution gives notice of its election not to accept an assignment of a
lease for one or more of the leased Bank Premises, or not to purchase one or more of the owned Bank Premises, within two Business Days of the Bank Closing Date, and the Receiver is satisfied that all of the conditions for surrender of such Bank
Premises set forth in this Agreement have been met within fifteen (15) days of the Bank Closing Date, then, notwithstanding any other provision of this Agreement to the contrary, the Assuming Institution shall not be liable for any of the costs
imposed by this Section 4.6(e). 
 (f) Certain Requirements as to Fixtures, Furniture and Equipment and Certain Specialty
Assets. If the Assuming Institution (i) purchases owned Bank Premises (including any Bank Premises purchased at the fixed price shown on the Bid Form) or (ii) accepts an assignment of the lease (or enters into a sublease or a new lease
in lieu thereof) for leased Bank Premises as provided in Section 4.6(a) or 4.6(b), or (iii) does not exercise either such option, but within twelve (12) months following the Bank Closing Date obtains the right to occupy all or any
portion of such Bank Premises, whether by assignment, lease, sublease, purchase or otherwise, other than in accordance with Section 4.6(a) or 4.6(b) (each of the preceding, a “Subsequently Occupied Space”), the Assuming Institution
shall (A) effective as of the Bank Closing Date, purchase from the Receiver all Fixtures, all Furniture and Equipment, and all Specialty Assets with an appraised value (as determined in accordance with Section 4.6(j)) of less than $10,000
owned by the Failed Bank and located on or at the Subsequently Occupied Space as of the Bank Closing Date at Fair Market Value, (B) accept an assignment or a sublease of the leases or negotiate new leases for all Fixtures and Furniture and
Equipment leased by the Failed Bank and located on or at the Subsequently Occupied Space, and (C) if applicable, 

  

					
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accept an assignment or a sublease of any ground lease or negotiate a new ground lease with respect to any land on which the Subsequently Occupied Space is located; provided that the Receiver has
not previously disposed of such Fixtures or Furniture and Equipment or Specialty Assets or repudiated the leases referred to in clause (B) or clause (C). 

(g) Surrendering Bank Premises. 

(i) If the Assuming Institution elects not to purchase any owned Bank Premises, the notice of such election in accordance with
Section 4.6(a) shall specify the Bank Premises Surrender Date. The Assuming Institution shall be responsible for promptly relinquishing and releasing to the Receiver such Bank Premises and the Fixtures, the Furniture and Equipment and the
Specialty Assets located thereon which existed at the time of the Bank Closing Date, in the same condition as at the Bank Closing Date, and at the Bank Premises where they were inventoried at the Bank Closing Date, normal wear and tear excepted. Any
of the aforementioned which is missing will be charged to the Assuming Institution at the item’s Fair Market Value as determined in accordance with this Agreement. By remaining in any such Bank Premises more than 150 days after the Bank Closing
Date (unless the Assuming Institution must do so to comply with Section 4.1 and has made appropriate arrangements with the Receiver and all applicable lessors), the Assuming Institution shall, at the Receiver’s option, (x) be deemed
to have agreed to purchase such Bank Premises, and to assume all leases, obligations and liabilities with respect to leased Furniture and Equipment and leased Fixtures located thereon and any ground lease with respect to the land on which such Bank
Premises are located, and (y) be required to purchase all Fixtures and all Furniture and Equipment owned by the Failed Bank and located on or at the Bank Premises as of the Bank Closing Date. 

(ii) If the Assuming Institution elects not to accept an assignment of the lease or sublease of any leased Bank Premises, the
notice of such election in accordance with Section 4.6(b) shall specify the Bank Premises Surrender Date. The Assuming Institution shall be responsible for promptly relinquishing and releasing to the Receiver such Bank Premises and the
Fixtures, the Furniture and Equipment and the Specialty Assets located thereon which existed at the time of the Bank Closing Date, in the same condition as at the Bank Closing Date, and at the Bank Premises where they were inventoried at the Bank
Closing Date, normal wear and tear excepted. Any of the aforementioned which is missing will be charged to the Assuming Institution at the item’s Fair Market Value as determined in accordance with this Agreement. By failing to provide notice of
its intention to surrender such Bank Premises prior to the expiration of the option period specified in Section 4.6(b), or by remaining in any such Bank Premises more than 150 days after the Bank Closing Date (unless the Assuming Institution
must do so to comply with Section 4.1 and has made appropriate arrangements with the Receiver and all applicable lessors), the Assuming Institution shall, at the Receiver’s option, (x) be deemed to have assumed all leases, obligations
and liabilities with respect to such Bank Premises (including any ground lease with respect to the land on which such Bank Premises are located), and leased Furniture and Equipment and leased Fixtures located thereon in accordance with this
Section 4.6 (unless the Receiver previously repudiated any such lease), and (y) be required to purchase all Fixtures and all Furniture and Equipment owned by the Failed Bank at Fair Market Value and located on or at the Bank Premises as of
the Bank Closing Date. 

  

					
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 (h) Furniture and Equipment and Certain Other Equipment. The Receiver hereby grants to
the Assuming Institution an option to purchase all Furniture and Equipment owned by the Failed Bank at Fair Market Value and located at any leased or owned Bank Premises (i) that the Assuming Institution does not elect to purchase pursuant to
Section 4.6(a) or (ii) for which Assuming Institution does not elect to take assignment of its lease pursuant to Section 4.6(b); provided that, the Assuming Institution shall give the Receiver notice of its election to purchase such
Furniture and Equipment at the time it gives notice of its intention to surrender such Bank Premises. 
 (i) Option to Put Bank Premises
and Related Fixtures, Furniture and Equipment. 
 (i) For a period of ninety (90) days following the Bank Closing
Date, the Assuming Institution shall be entitled to require the Receiver to purchase any Bank Premises that is owned, directly or indirectly, by an Acquired Subsidiary and the purchase price paid by the Receiver shall be the Fair Market Value of the
Bank Premises. 
 (ii) If the Assuming Institution elects to require the Receiver to purchase any Bank Premises that is
owned, directly or indirectly, by an Acquired Subsidiary, the Assuming Institution shall also have the option, exercisable within the same ninety (90) day time period, to require the Receiver to purchase any Fixtures, any Furniture and
Equipment and any Specialty Assets that are owned, directly or indirectly, by an Acquired Subsidiary and are located on or at such Bank Premises and were utilized by the Failed Bank for banking purposes. The purchase price paid by the Receiver shall
be the Fair Market Value of the Fixtures, Furniture and Equipment and Specialty Assets purchased. 
 (iii) If the Assuming
Institution elects to exercise its options under this Section 4.6(i), the Assuming Institution shall pay to the Receiver occupancy costs as described in Section 4.6(e) and shall surrender the Bank Premises in accordance with
Section 4.6(g)(i). 
 (iv) Regardless of whether the Assuming Institution exercises any of its options under this
Section 4.6(i), the purchase price for the Acquired Subsidiary shall be adjusted by the difference between the Fair Market Value of the Bank Premises, the Fixtures, the Furniture and Equipment and the Specialty Assets utilized by the Failed
Bank for banking purposes and their respective Book Value as reflected on the books and records of the Acquired Subsidiary. Such adjustment shall be made in accordance with Article VIII of this Agreement. 

(j) Option to Purchase Specialty Assets. The Receiver hereby grants to the Assuming Institution an exclusive option for the period of
thirty (30) days commencing the day after the Receiver provides the Assuming Institution the appropriate appraisal to purchase at Fair Market Value all, some or none of the Specialty Assets. 

  

					
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 (k) Data Removal. The Assuming Institution shall, prior to returning any automated teller
machine to Receiver and unless otherwise requested by the Receiver, (i) remove all data from that automated teller machine and (ii) provide a written statement to the Receiver that all data has been removed in a manner that renders it
unrecoverable. 
 4.7. Agreement with Respect to Leased Data Management Equipment. 

(a) Option. The Receiver hereby grants to the Assuming Institution an exclusive option for the period of ninety (90) days
commencing the day after Bank Closing Date to accept an assignment from the Receiver of all Leased Data Management Equipment. 
 (b)
Notices Regarding Leased Data Management Equipment. The Assuming Institution shall (i) give written notice to the Receiver within the option period specified in Section 4.7(a) of its intent to accept or decline an assignment or
sublease of all Leased Data Management Equipment and promptly accept an assignment or sublease of such Leased Data Management Equipment, and (ii) give written notice to the appropriate lessor(s) that it has accepted an assignment or sublease of
any such Leased Data Management Equipment that is subject to a lease. 
 (c) Facilitation by Receiver. The Receiver agrees to
facilitate the assignment or sublease of Leased Data Management Equipment or the negotiation of new leases or license agreements by the Assuming Institution; provided, that neither the Receiver nor the Corporation shall be obligated to engage in
litigation, make payments to the Assuming Institution or to any third party in connection with facilitating any such assumption, assignment, sublease or negotiation or commit to any other obligations to third parties. 

(d) Operating Costs. The Assuming Institution agrees, during its period of use of any Leased Data Management Equipment and ending on
the date which is thirty (30) days after the Assuming Institution has given notice to the Receiver of its election not to assume such lease, to pay to the Receiver or to appropriate third parties at the direction of the Receiver all operating
costs with respect thereto and to comply with all relevant terms of any existing Leased Data Management Equipment leases entered into by the Failed Bank, including without limitation the timely payment of all rent, taxes, fees, charges, maintenance,
utilities, insurance and assessments. 
 (e) Assuming Institution’s Obligation. The Assuming Institution shall, not later than
fifty (50) days after giving the notice provided in Section 4.7(b), (i) relinquish and release to the Receiver or, at the direction of the Receiver, to a third party, all Leased Data Management Equipment, in the same condition as at
Bank Closing Date, normal wear and tear excepted, or (ii) accept an assignment or a sublease of any existing Leased Data Management lease or negotiate a new lease or license agreement under this Section 4.7 with respect to Leased Data
Management Equipment. 
 (f) Data Removal. The Assuming Institution shall, prior to returning any Leased Data Management Equipment,
and unless otherwise requested by the Receiver, (i) remove all data from the Leased Data Management Equipment and (ii) provide a written statement to the Receiver that all data has been removed in a manner that renders it unrecoverable.

  

					
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 4.8. Certain Existing Agreements. 

(a) Assumption of Agreements. Subject to the provisions of Section 4.8(b), with respect to agreements existing as of the Bank
Closing Date which provide for the rendering of services by or to the Failed Bank, within ninety (90) days after the Bank Closing Date, the Assuming Institution shall give the Receiver written notice specifying whether it elects to assume or
not to assume each such agreement. Except as may be otherwise provided in this Article IV, the Assuming Institution agrees to comply with the terms of each such agreement for a period commencing on the day after the Bank Closing Date and ending on:
(i) in the case of an agreement that provides for the rendering of services by the Failed Bank, the date which is ninety (90) days after the Bank Closing Date, and (ii) in the case of an agreement that provides for the rendering of
services to the Failed Bank, the date which is thirty (30) days after the Assuming Institution has given notice to the Receiver of its election not to assume such agreement; provided that the Receiver can reasonably make such service agreements
available to the Assuming Institution. The Assuming Institution shall be deemed by the Receiver to have assumed agreements for which no notification is timely given. The Receiver agrees to assign, transfer, convey and deliver to the Assuming
Institution all right, title and interest of the Receiver, if any, in and to agreements the Assuming Institution assumes hereunder. In the event the Assuming Institution elects not to accept an assignment of any lease (or sublease) or negotiate a
new lease for leased Bank Premises under Section 4.6 and does not otherwise occupy such premises, the provisions of this Section 4.8(a) shall not apply to service agreements related to such premises. The Assuming Institution agrees, during
the period it has the use or benefit of any such agreement, promptly to pay to the Receiver or to appropriate third parties at the direction of the Receiver all operating costs with respect thereto and to comply with all relevant terms of such
agreement. 
 (b) Excluded Agreements. The provisions of Section 4.8(a) regarding the Assuming Institution’s election to
assume or not assume certain agreements shall not apply to (i) agreements pursuant to which the Failed Bank provides loan servicing for others or loan servicing is provided to the Failed Bank by others, (ii) agreements maintained between
the Failed Bank and MERSCORP, Inc., or its wholly owned subsidiary, Mortgage Electronic Registration Systems, Inc., (iii) agreements that are subject to Sections 4.1 through 4.7 and any insurance policy or bond referred to in
Section 3.5(a) or other agreement specified in Section 3.5, (iv) consulting, management or employment agreements, if any, between the Failed Bank and its employees or other Persons, and (v) any contract or agreement under which
the Failed Bank is the lessor of Bank Premises or Other Real Estate. Except as otherwise expressly set forth elsewhere in this Agreement, the Assuming Institution does not assume any liabilities or acquire any rights under any of the agreements
described in this Section 4.8(b). 
 4.9. Informational Tax Reporting. The Assuming Institution agrees to
perform all obligations of the Failed Bank with respect to Federal and State income tax informational reporting related to (i) the Acquired Assets and the Liabilities Assumed, (ii) deposit accounts that were closed and loans that were paid
off or collateral obtained with respect thereto prior to the Bank Closing Date, (iii) miscellaneous payments made to vendors of the Failed Bank, and (iv) any other asset or liability of the Failed Bank, including, without limitation, loans
not purchased and Deposits not assumed by the Assuming Institution, as may be required by the Receiver. 

  

					
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 4.10. Insurance. 

(a) Assuming Institution to Insure. The Assuming Institution will obtain and maintain insurance coverage acceptable to the Receiver
(including public liability, fire, and extended coverage insurance) naming the Assuming Institution as the insured and the Receiver as additional insured, effective from and after the Bank Closing Date, with respect to all (i) Bank Premises,
and (ii) Fixtures, Furniture and Equipment, Specialty Assets and Leased Data Management Equipment located on or at those Bank Premises. The Assuming Institution’s obligation to insure and to maintain the Receiver as an additional insured
on Bank Premises insurance coverage shall cease upon either: (x) Bank Premises Surrender Date or (y) the date the Assuming Institution receives a deed from the Receiver for owned Bank Premises or assumes the lease for leased Bank Premises.

 (b) Rights of Receiver. If the Assuming Institution at any time from or after Bank Closing Date fails to (i) obtain or
maintain any of the insurance policies required by Section 4.10(a), (ii) pay any premium in whole or in part related to those insurance policies, or (iii) provide evidence of those insurance policies acceptable to the Receiver, then
the Receiver may in its sole and absolute discretion, without notice, and without waiving or releasing any obligation or liability of the Assuming Institution, obtain and maintain insurance policies, pay insurance premiums and take any other actions
with respect to the insurance coverage as the Receiver deem advisable. The Assuming Institution will reimburse the Receiver for all sums disbursed in connection with this Section 4.10(b). 

4.11. Office Space for Receiver and Corporation; Certain Payments. 

(a) FDIC Office Space. For the period commencing on the day following the Bank Closing Date and ending on the one hundred fiftieth
(150th) day following the Bank Closing Date, the Assuming Institution will provide to the Receiver and the Corporation, without charge, adequate and suitable office space (including parking facilities and vault space), furniture, equipment
(including photocopying and telecopying machines), email accounts, network access and technology resources (such as shared drive), and utilities (including local telephone service and fax machines) (collectively, “FDIC Office
Space”) at the Bank Premises occupied by the Assuming Institution for the Receiver and the Corporation to use in the discharge of their respective functions with respect to the Failed Bank. 

(b) Receiver’s Right to Extend. Upon written notice by the Receiver or the Corporation, for the period commencing on the one
hundred fifty-first (151st) day following the Bank Closing Date and ending no later than the three hundred and sixty-fifth (365th) day following the Bank Closing Date, the Assuming Institution will continue to provide to the Receiver and
the Corporation FDIC Office Space at the Bank Premises. During the period from the 151st day following the Bank Closing Date until the day the FDIC and the Corporation vacate FDIC Office Space, the Receiver and the Corporation will pay to the
Assuming Institution their respective pro rata share (based on square footage occupied) of (A) the market rental value for the applicable owned Bank Premises or (B) actual rent paid for applicable leased Bank Premises. 

(c) Receiver’s Relocation Right. If the Receiver or the Corporation determine that the space provided by the Assuming Institution
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the Corporation may relocate to other quarters having adequate and suitable FDIC Office Space and the costs of relocation shall be borne by the Assuming Institution and any rental and utility
costs for the balance of the period of occupancy by the Receiver and the Corporation shall paid in accordance with 4.11(b). 
 (d)
Expenditures. The Assuming Institution will pay such bills and invoices on behalf of the Receiver and the Corporation as the Receiver or the Corporation may direct for the period beginning on the date of the Bank Closing Date and ending on
Settlement Date. The Assuming Institution shall submit its requests for reimbursement of such expenditures pursuant to Article VIII of this Agreement. 

4.12. Continuation of Group Health Plan Coverage for Former Employees of the Failed Bank. 

(a) Continuation Coverage. The Assuming Institution agrees to assist the Receiver, as provided in this Section 4.12, in offering
individuals who were employees or former employees of the Failed Bank, or any of its Subsidiaries, and who, immediately prior to the Bank Closing Date, were receiving, or were eligible to receive, health insurance coverage or health insurance
continuation coverage from the Failed Bank (“Eligible Individuals”), the opportunity to obtain health insurance coverage in the Corporation’s Federal Insurance Administration Continuation Coverage Plan which provides for health
insurance continuation coverage to such Eligible Individuals and other persons who are qualified beneficiaries of the Failed Bank (“Qualified Beneficiaries”) as defined in the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”) § 607, 29 U.S.C. § 1167. The Assuming Institution shall consult with the Receiver and not later than five (5) Business Days after the Bank Closing Date shall provide written notice to the Receiver of
the number (if available), identity (if available) and addresses (if available) of the Eligible Individuals who are Qualified Beneficiaries of the Failed Bank and for whom a “qualifying event” (as defined in ERISA § 603, 29 U.S.C.
§ 1163) has occurred and with respect to whom the Failed Bank’s obligations under Part 6 of Subtitle B of Title I of ERISA, 29 U.S.C. §§ 1161-1169 have not been satisfied in full, and such other information as the Receiver may
reasonably require. The Receiver shall cooperate with the Assuming Institution in order to permit it to prepare such notice and shall provide to the Assuming Institution such data in its possession as may be reasonably required for purposes of
preparing such notice. 
 (b) Qualified Beneficiaries; Expenses. The Assuming Institution shall take such further action to assist
the Receiver in offering the Eligible Individuals who are Qualified Beneficiaries of the Failed Bank the opportunity to obtain health insurance coverage in the Corporation’s Federal Insurance Administration Continuation Coverage Plan as the
Receiver may direct. All expenses incurred and paid by the Assuming Institution (i) in connection with the obligations of the Assuming Institution under this Section 4.12, and (ii) in providing health insurance continuation coverage
to any Eligible Individuals who are hired by the Assuming Institution and such employees’ Qualified Beneficiaries shall be borne by the Assuming Institution. 

(c) Failed Bank Employees. Unless otherwise agreed by the Receiver and the Assuming Institution, the Assuming Institution shall be
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Bank until the Assuming Institution makes a final determination as to whether such employee is to be retained by the Assuming Institution. The Assuming Institution shall offer to the Failed Bank
employees it retains employment benefits comparable to those the Assuming Institution, offers its current employees. In the event the Receiver utilizes the services of any Failed Bank employee, the Receiver shall reimburse the Assuming Institution
for such cost through the settlement process described in Article VIII. 
 (d) No Third Party Beneficiaries. This Section 4.12
is for the sole and exclusive benefit of the parties to this Agreement, and for the benefit of no other Person (including any former employee of the Failed Bank or any Subsidiary thereof, Eligible Individual or Qualified Beneficiary of such former
employee). Nothing in this Section 4.12 is intended by the parties, or shall be construed, to give any Person (including any former employee of the Failed Bank or any Subsidiary thereof, Eligible Individual or Qualified Beneficiary of such
former employee) other than the Corporation, the Receiver and the Assuming Institution, any legal or equitable right, remedy or claim under or with respect to the provisions of this Section 4.12. 

4.13. Interim Asset Servicing. At any time after the Bank Closing Date, the Receiver may establish on its books
an asset pool(s) and may transfer to such asset pool(s) (by means of accounting entries on the books of the Receiver) all or any assets and liabilities of the Failed Bank which are not acquired by the Assuming Institution, including, without
limitation, wholly unfunded Commitments and assets and liabilities which may be acquired, funded or originated by the Receiver subsequent to the Bank Closing Date. The Receiver may remove assets (and liabilities) from or add assets (and liabilities)
to such pool(s) at any time in its discretion. At the option of the Receiver, the Assuming Institution agrees to service, administer and collect such pool assets in accordance with, and for the term set forth in, Exhibit 4.13. 

ARTICLE V. DUTIES WITH RESPECT TO DEPOSITORS OF THE FAILED BANK. 

5.1. Payment of Checks, Drafts, Orders and Deposits. Subject to Section 9.5, the Assuming Institution agrees
to pay all properly drawn checks, drafts, withdrawal orders and Assumed Deposits of depositors of the Failed Bank presented for payment, whether drawn on the check or draft forms provided by the Failed Bank or by the Assuming Institution, to the
extent that the Deposit balances to the credit of the respective makers or drawers assumed by the Assuming Institution under this Agreement are sufficient to permit the payment thereof, and in all other respects to discharge, in the usual course of
conducting a banking business, the duties and obligations of the Failed Bank with respect to the Deposit balances due and owing to the depositors of the Failed Bank assumed by the Assuming Institution under this Agreement. 

5.2. Certain Agreements Related to Deposits. Except as may be modified pursuant to Section 2.2, the Assuming
Institution agrees to honor the terms and conditions of any written escrow or loan servicing agreement or other similar agreement relating to a Deposit liability assumed by the Assuming Institution pursuant to this Agreement. 

  

					
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 5.3. Notice to Depositors. 

(a) Assumption of Deposits. Within thirty (30) days after the Bank Closing Date, the Assuming Institution shall give notice by
mail to each depositor of the Failed Bank of (i) the assumption of the Deposit liabilities of the Failed Bank, and (ii) the procedures to claim Deposits (the Receiver shall provide item (ii) to Assuming Institution). The Assuming
Institution shall also publish notice of its assumption of the Deposit liabilities of the Failed Bank in a newspaper of general circulation in the county or counties in which the Failed Bank was located. 

(b) Notice to Depositors. Within thirty (30) days after the Bank Closing Date, the Assuming Institution shall give notices by
mail to each depositor of the Failed Bank, as required under Section 2.2. 
 (c) Fee Schedule. If the Assuming Institution
proposes to charge fees different from those fees formerly charged by the Failed Bank, the Assuming Institution shall include its fee schedule in its mailed notice. 

(d) Approval of Notices and Publications. The Assuming Institution shall obtain approval of all notices and publications required by
this Section 5.3 from counsel for the Receiver prior to mailing or publication. 
 (e) Validation. To validate the notice
requirements outlined in Section 5.3, the Assuming Institution shall provide the Receiver (i) an Affidavit of Publication to meet the publication requirements outlined in Section 5.3(a) and (ii) the Assuming Institution will
prepare an Affidavit of Mailing in a form substantially similar to Exhibit 2.3B after mailing the seven (7) day Notice to Depositors as required under Section 5.3(b). 

ARTICLE VI. FAILED BANK RECORDS. 

6.1. Transfer of Failed Bank Records. In accordance with Sections 2.1 and 3.1, the Receiver assigns, transfers,
conveys and delivers to the Assuming Institution, wherever located, any and all Failed Bank Records, other than the following: 
 (a)
Failed Bank Records pertaining to former employees of the Failed Bank who were no longer employed by the Failed Bank as of the Bank Closing Date and Failed Bank Records pertaining to employees of the Failed Bank who were employed by the Failed Bank
as of the Bank Closing Date and for whom the Receiver is unable to obtain a waiver to release such Failed Bank Records to the Assuming Institution; 

(b) Failed Bank Records pertaining to (i) any asset or liability of the Failed Bank retained by the Receiver, and (ii) any asset of
the Failed Bank acquired by the Receiver pursuant to this Agreement; and 
 (c) any other Failed Bank Records as determined by the
Receiver. 
 6.2. Reserved. 

  

					
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 6.3. Preservation of Failed Bank Records. 

(a) Assuming Institution Failed Bank Records Retention. The Assuming Institution will preserve and maintain, at its sole expense, for
the joint benefit of the Receiver, the Corporation and the Assuming Institution, all Failed Bank Records, regardless of whether the Failed Bank Records were transferred to the Assuming Institution under Section 6.1 or retained by the Receiver
under Sections 6.1(a) through (c), except those Failed Bank Records which the Receiver, in its sole and absolute discretion, chooses to physically take. The Assuming Institution shall have the primary responsibility to respond to subpoenas,
discovery requests, and other similar official inquiries and customer requests for lien releases with respect to the Failed Bank Records of which it has custody. If the Assuming Institution receives a subpoena addressed to the Assuming Institution
seeking any Failed Bank Records of which it has custody, but are Failed Bank Records retained by the Receiver, the Assuming Institution will promptly provide the Receiver with a copy of that subpoena by delivering a copy to the Regional Counsel, as
provided in Section 13.6(b). With respect to its obligations under this Section 6.3 regarding Electronically Stored Information, the Assuming Institution will complete the Data Retention Catalog attached hereto as Schedule 6.3 and
submit it to the Receiver within thirty (30) days after the Bank Closing Date. With respect to Electronically Stored Information, the Assuming Institution must maintain those Failed Bank Records in an easily accessible and useable format. If
such Failed Bank Records are maintained by a third party vendor, the Assuming Institution is responsible for ensuring that the third party complies with this Article. 

(b) Destruction of Certain Failed Bank Records. With regard to all Failed Bank Records of which the Assuming Institution has custody
which are at least ten (10) years old as of the date of the appointment of the Receiver, the Assuming Institution will request written permission to destroy such Failed Bank Records by submitting a written request to destroy, specifying
precisely which Failed Bank Records are included in the request, to DRR– Records Manager, CServiceFDICDAL@FDIC.gov. 
 (c)
Destruction of Failed Bank Records after Six Years. With regard to all Failed Bank Records of which the Assuming Institution has custody which have been maintained in its custody after six (6) years from the date of the appointment of
the Receiver, the Assuming Institution will request written permission to destroy such Failed Bank Records by submitting a written request to destroy, specifying precisely which Failed Bank Records are included in the request, to DRR– Records
Manager, CServiceFDICDAL@FDIC.gov. 
 6.4. Access to Failed Bank Records; Copies. The Assuming Institution will
permit the Receiver and the Corporation access to all Failed Bank Records of which the Assuming Institution has custody, and to use, inspect, make extracts from or request copies of any such Failed Bank Records in the manner and to the extent
requested, and to duplicate, in the discretion of the Receiver or the Corporation, any Failed Bank Record; provided that if the Failed Bank maintained one or more duplicate copies of such Failed Bank Records, the Assuming Institution hereby assigns,
transfers, and conveys to the Corporation one such duplicate copy of each such Failed Bank Record without cost to the Corporation, and will deliver to the Corporation all Failed Bank Records assigned and transferred to the Corporation under this
Article VI as soon as practicable on or after the date of this Agreement. The party requesting a copy of any Failed Bank Record shall bear the cost (based on standard accepted industry charges to the extent applicable, as determined by the

  

					
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Receiver) for providing such duplicate Failed Bank Record. A copy of each Failed Bank Record requested shall be provided upon the request of the Receiver. If the Receiver or Corporation is
seeking access to a Failed Bank Record from the Assuming Institution, the Receiver or Corporation need not provide a subpoena to obtain access to the Failed Bank Records in the Assuming Institution’s custody. 

ARTICLE VII. BID; INITIAL PAYMENT. 

The Assuming Institution has submitted to the Receiver a Deposit premium bid of 1.59% (the “Bid Amount”). The Deposit
premium bid will be applied to the total of all Assumed Deposits except for brokered, CDARS®, and any market place or similar subscription services Deposits as reflected on Schedule 7.
On the Payment Date, the Assuming Institution will pay to the Corporation, or the Corporation will pay to the Assuming Institution, as the case may be, the Initial Payment, together with interest on such amount (if the Payment Date is not the day
following the Bank Closing Date) from and including the day following the Bank Closing Date to and including the day preceding the Payment Date at the Settlement Interest Rate. 

ARTICLE VIII. ADJUSTMENTS; SETTLEMENT PROCESS. 

8.1. Pro Forma Statement. The Receiver, as soon as practicable after the Bank Closing Date, in accordance with
the best information then available, shall provide to the Assuming Institution a Pro Forma statement reflecting any adjustments of such liabilities and assets as may be necessary. Such Pro Forma statement shall take into account, to the extent
possible, (a) liabilities and assets of a nature similar to those contemplated by Section 2.1 or Section 3.1, respectively, which on the Bank Closing Date were carried in the Failed Bank’s suspense accounts, (b) accruals as
of the Bank Closing Date for all income related to the assets and business of the Failed Bank acquired by the Assuming Institution hereunder, whether or not such accruals were reflected on the Failed Bank Records in the normal course of its
operations, and (c) adjustments to determine the Book Value of any investment in an Acquired Subsidiary and related accounts on the “bank only” (unconsolidated) balance sheet of the Failed Bank based on the Equity Method of
Accounting, whether or not the Failed Bank used the Equity Method of Accounting for investments in subsidiaries, except that the resulting amount cannot be less than the Acquired Subsidiary’s recorded equity as of the Bank Closing Date as
reflected on the Failed Bank Records of the Acquired Subsidiary. Acquired Subsidiaries with negative equity will be restated to $1 pursuant to the Equity Method of Accounting. Any Acquired Asset purchased by the Assuming Institution or any asset of
an Acquired Subsidiary purchased by the Assuming Institution pursuant to Section 3.1 which was partially or wholly charged off during the period beginning the day after the Bid Valuation Date to the date of the Bank Closing Date shall be deemed
not to be charged off for the purposes of the Pro Forma statement, and the purchase price shall be determined pursuant to Section 3.2. 

8.2. Correction of Errors and Omissions; Other Liabilities. 

(a) Adjustments to Correct Errors. In the event any bookkeeping omissions or errors are discovered in preparing any Pro Forma
statement or in completing the transfers and assumptions contemplated hereby, the parties hereto agree to correct such errors and omissions, it being understood that, as far as practicable, all adjustments will be made consistent with the

  

					
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judgments, methods, policies or accounting principles utilized by the Failed Bank in preparing and maintaining Failed Bank Records, except that adjustments made pursuant to this
Section 8.2(a) are not intended to bring the Failed Bank Records into accordance with generally accepted accounting principles. 
 (b)
Receiver’s Rights Regarding Other Liabilities. If the Receiver discovers at any time subsequent to the date of this Agreement that any claim exists against the Failed Bank which is of such a nature that it would have been included in the
liabilities assumed under Article II had the existence of such claim or the facts giving rise thereto been known as of the Bank Closing Date, the Receiver may, in its discretion, at any time, require that such claim be assumed by the Assuming
Institution in a manner consistent with the intent of this Agreement. The Receiver will make appropriate adjustments to the Pro Forma statement provided by the Receiver to the Assuming Institution pursuant to Section 8.1 as may be necessary.

 8.3. Payments. The Receiver agrees to cause to be paid to the Assuming Institution, or the Assuming
Institution agrees to pay to the Receiver, as the case may be, on the Settlement Date, a payment in an amount which reflects net adjustments (including any costs, expenses and fees associated with determinations of value as provided in this
Agreement) made pursuant to Section 8.1 or Section 8.2, plus interest as provided in Section 8.4. The Receiver and the Assuming Institution agree to effect on the Settlement Date any further transfer of assets to or assumption of
liabilities or claims by the Assuming Institution as may be necessary in accordance with Section 8.1 or Section 8.2. 

8.4. Interest. Any amounts paid under Section 8.3 or Section 8.5 shall bear interest for the period
from and including the day following the Bank Closing Date to and including the day preceding the payment at the Settlement Interest Rate. 

8.5. Subsequent Adjustments. In the event that the Assuming Institution or the Receiver discovers any errors or
omissions as contemplated by Section 8.2 or any error with respect to the payment made under Section 8.3 after the Settlement Date, the Assuming Institution and the Receiver agree to promptly correct any such errors or omissions, make any
payments and effect any transfers or assumptions as may be necessary to reflect any such correction plus interest as provided in Section 8.4. 

ARTICLE IX. CONTINUING COOPERATION. 

9.1. General Matters. The parties hereto will, in good faith and with their best efforts, cooperate with each
other to carry out the transactions contemplated by this Agreement and to effect the purposes hereof. 
 9.2.
Additional Title Documents. The Receiver, the Corporation and the Assuming Institution each shall, at any time, and from time to time, upon the request of any party hereto, execute and deliver such additional instruments and documents of
conveyance as shall be reasonably necessary to vest in the appropriate party its full legal or equitable title in and to the property transferred pursuant to this Agreement or to be transferred in accordance herewith. The Assuming Institution shall
prepare such instruments and documents of conveyance (in form and substance satisfactory to the Receiver) as shall be necessary to vest title to the Acquired Assets in the Assuming Institution. The Assuming Institution shall be responsible for
recording such instruments and documents of conveyance at its own expense. 

  

					
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 9.3. Claims and Suits. 

(a) Defense and Settlement. The Receiver shall have the right, in its discretion, to (i) defend or settle any claim or suit
against the Assuming Institution with respect to which the Receiver has indemnified the Assuming Institution in the same manner and to the same extent as provided in Article XII, and (ii) defend or settle any claim or suit against the Assuming
Institution with respect to any Liability Assumed, which claim or suit may result in a loss to the Receiver arising out of or related to this Agreement, or which existed against the Failed Bank on or before the Bank Closing Date. The exercise by the
Receiver of any rights under this Section 9.3(a) shall not release the Assuming Institution with respect to any of its obligations under this Agreement. 

(b) Removal of Actions. In the event any action at law or in equity shall be instituted by any Person against the Receiver and the
Corporation as codefendants with respect to any asset of the Failed Bank retained or acquired pursuant to this Agreement by the Receiver, the Receiver agrees, at the request of the Corporation, to join with the Corporation in a petition to remove
the action to the United States District Court for the proper district. The Receiver agrees to institute, with or without joinder of the Corporation as co-plaintiff, any action with respect to any such retained or acquired asset or any matter
connected therewith whenever notice requiring such action shall be given by the Corporation to the Receiver. 
 9.4.
Payment of Deposits. In the event any depositor does not accept the obligation of the Assuming Institution to pay any Deposit liability of the Failed Bank assumed by the Assuming Institution pursuant to this Agreement and asserts a claim
against the Receiver for all or any portion of any such Deposit liability, the Assuming Institution agrees on demand to provide to the Receiver funds sufficient to pay such claim in an amount not in excess of the Deposit liability reflected on the
books of the Assuming Institution at the time such claim is made. Upon payment by the Assuming Institution to the Receiver of such amount, the Assuming Institution shall be discharged from any further obligation under this Agreement to pay to any
such depositor the amount of such Deposit liability paid to the Receiver. 
 9.5. Withheld Payments. At any
time, the Receiver or the Corporation may, in its discretion, determine that all or any portion of any deposit balance assumed by the Assuming Institution pursuant to this Agreement does not constitute a “Deposit” (or otherwise, in its
discretion, determine that it is the best interest of the Receiver or Corporation to withhold all or any portion of any deposit), and may direct the Assuming Institution to withhold payment of all or any portion of any such deposit balance. Upon
such direction, the Assuming Institution agrees to hold such deposit and not to make any payment of such deposit balance to or on behalf of the depositor, or to itself, whether by way of transfer, set-off or otherwise. The Assuming Institution
agrees to maintain the “withheld payment” status of any such deposit balance until directed in writing by the Receiver or the Corporation as to its disposition. At the direction of the Receiver or the Corporation, the Assuming Institution
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liability to such depositor with respect to such returned deposit balance. If such deposit balance has been paid to the depositor prior to a demand for return by the Corporation or the Receiver,
and payment of such deposit balance had not been previously withheld pursuant to this Section 9.5, the Assuming Institution shall not be obligated to return such deposit balance to the Receiver or the Corporation. The Assuming Institution shall
be obligated to reimburse the Corporation or the Receiver, as the case may be, for the amount of any deposit balance or portion thereof paid by the Assuming Institution in contravention of any previous direction to withhold payment of such deposit
balance or return such deposit balance the payment of which was withheld pursuant to this Section 9.5. 
 9.6.
Proceedings with Respect to Certain Assets and Liabilities. 
 (a) Cooperation by Assuming Institution. In connection
with any investigation, proceeding or other matter with respect to any asset or liability of the Failed Bank retained by the Receiver, or any asset of the Failed Bank acquired by the Receiver pursuant to this Agreement, the Assuming Institution
shall cooperate to the extent reasonably required by the Receiver. 
 (b) Access to Records. In addition to its obligations under
Section 6.4, the Assuming Institution shall provide representatives of the Receiver access at reasonable times and locations without other limitation or qualification to (i) its directors, officers, employees and agents and those of the
Acquired Subsidiaries, and (ii) its books and records, the books and records of such Acquired Subsidiaries and all Credit Files, and copies thereof. Copies of books, records, and Credit Files shall be provided by the Assuming Institution as
requested by the Receiver and the costs of duplication thereof shall be borne by the Receiver. 
 (c) Loan Documents. Not later than
ten (10) days after the Put Notice pursuant to Section 3.4 or the date of the notice of transfer of any Loan by the Assuming Institution to the Receiver pursuant to Section 3.6, the Assuming Institution shall deliver to the Receiver
such documents with respect to such Loan as the Receiver may request, including without limitation the following: (i) all related Credit Documents (other than certificates, notices and other ancillary documents), (ii) a certificate setting
forth the principal amount on the date of the transfer and the amount of interest, fees and other charges then accrued and unpaid thereon, and any restrictions on transfer to which any such Loan is subject, and (iii) all Credit Files, and all
documents, microfiche, microfilm and computer records (including but not limited to magnetic tape, disc storage, card forms and printed copy) maintained by, owned by, or in the possession of the Assuming Institution or any Affiliate of the Assuming
Institution relating to the transferred Loan. 
 9.7. Information. The Assuming Institution promptly shall
provide to the Corporation such other information, including financial statements and computations, relating to the performance of the provisions of this Agreement as the Corporation or the Receiver may request from time to time, and, at the request
of the Receiver, make available employees of the Failed Bank employed or retained by the Assuming Institution to assist in preparation of the Pro Forma statement pursuant to Section 8.1. 

9.8. Tax Ruling. The Assuming Institution shall not at any time, without the Corporation’s prior consent,
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Internal Revenue Service or otherwise seek to qualify for any special tax treatment or benefits associated with any payments made by the Receiver or Corporation pursuant to this Agreement. 

ARTICLE X. CONDITION PRECEDENT. 

The obligations of the parties to this Agreement are subject to the Receiver and the Corporation having received at or before the Bank Closing
Date evidence reasonably satisfactory to each of any necessary approval, waiver, or other action by any governmental authority, the board of directors of the Assuming Institution, or other third party, with respect to this Agreement and the
transactions contemplated hereby, the closing of the Failed Bank and the appointment of the Receiver, the chartering of the Assuming Institution, and any agreements, documents, matters or proceedings contemplated hereby or thereby. 

ARTICLE XI. REPRESENTATIONS AND WARRANTIES OF THE ASSUMING INSTITUTION. 

The Assuming Institution represents and warrants to the Corporation and the Receiver as follows: 

11.1. Corporate Existence and Authority. The Assuming Institution (a) is duly organized, validly existing
and in good standing under the laws of its Chartering Authority and has full power and authority to own and operate its properties and to conduct its business as now conducted by it, and (b) has full power and authority to execute and deliver
this Agreement and to perform its obligations hereunder. The Assuming Institution has taken all necessary corporate (or other applicable governance) action to authorize the execution, delivery and performance of this Agreement and the performance of
the transactions contemplated hereby. 
 11.2. Third Party Consents. No governmental authority or other third
party consents (including but not limited to approvals, licenses, registrations or declarations) are required in connection with the execution, delivery or performance by the Assuming Institution of this Agreement, other than such consents as have
been duly obtained and are in full force and effect. 
 11.3. Execution and Enforceability. This Agreement has
been duly executed and delivered by the Assuming Institution and when this Agreement has been duly authorized, executed and delivered by the Corporation and the Receiver, this Agreement will constitute the legal, valid and binding obligation of the
Assuming Institution, enforceable in accordance with its terms. 
 11.4. Compliance with Law. 

(a) No Violations. Neither the Assuming Institution nor any of its Subsidiaries is in violation of any statute, regulation, order,
decision, judgment or decree of, or any restriction imposed by, the United States of America, any State, municipality or other political subdivision or any agency of any of the foregoing, or any court or other tribunal having jurisdiction over the
Assuming Institution or any of its Subsidiaries or any assets of any such Person, or any foreign government or agency thereof having such jurisdiction, with respect to the 

  

					
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conduct of the business of the Assuming Institution or of any of its Subsidiaries, or the ownership of the properties of the Assuming Institution or any of its Subsidiaries, which, either
individually or in the aggregate with all other such violations, would materially and adversely affect the business, operations or condition (financial or otherwise) of the Assuming Institution or the ability of the Assuming Institution to perform,
satisfy or observe any obligation or condition under this Agreement. 
 (b) No Conflict. Neither the execution and delivery nor the
performance by the Assuming Institution of this Agreement will result in any violation by the Assuming Institution of, or be in conflict with, any provision of any applicable law or regulation, or any order, writ or decree of any court or
governmental authority. 
 11.5. Insured or Guaranteed Loans. If any Loans being transferred pursuant to this
Agreement are insured or guaranteed by any department or agency of any governmental unit, federal, state or local, Assuming Institution represents that Assuming Institution has been approved by such agency and is an approved lender or mortgagee, as
appropriate, if such approval is required. The Assuming Institution further assumes full responsibility for determining whether or not such insurance or guarantees are in full force and effect on the date of this Agreement and with respect to those
Loans whose insurance or guaranty is in full force and effect on the date of this Agreement, Assuming Institution assumes full responsibility for doing all things necessary to insure such insurance or guarantees remain in full force and effect.
Assuming Institution agrees to assume all of the obligations under the contract(s) of insurance or guaranty and agrees to cooperate with the Receiver where necessary to complete forms required by the insuring or guaranteeing department or agency to
effect or complete the transfer to Assuming Institution. 
 11.6. Representations Remain True. The Assuming
Institution represents and warrants that it has executed and delivered to the Corporation a Purchaser Eligibility Certification and Confidentiality Agreement and that all information provided and representations made by or on behalf of the Assuming
Institution in connection with this Agreement and the transactions contemplated hereby, including, but not limited to, the Purchaser Eligibility Certification and Confidentiality Agreement (which are affirmed and ratified hereby) are and remain true
and correct in all material respects and do not fail to state any fact required to make the information contained therein not misleading. 

11.7. No Reliance; Independent Advice. The Assuming Institution is not relying on the Receiver or the Corporation
for any business, legal, tax, accounting, investment or other advice in connection with this Agreement and the Exhibits hereto and documents delivered in connection with the foregoing, and has had adequate opportunity to consult with advisors of its
choice in connection therewith. 
 ARTICLE XII. INDEMNIFICATION. 

12.1. Indemnification of Indemnitees. From and after the Bank Closing Date and subject to the limitations set
forth in this Section 12.1 and Section 12.6 and compliance by the Indemnitee with Section 12.2, the Receiver agrees to indemnify and hold harmless the Indemnitee against any and all costs, losses, liabilities, expenses (including
attorneys’ fees) incurred prior to the assumption of defense by the Receiver pursuant to Section 12.2(d), 

  

					
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judgments, fines and amounts paid in settlement actually and reasonably incurred in connection with claims against an Indemnitee based on liabilities of the Failed Bank that are not assumed by
the Assuming Institution pursuant to this Agreement or subsequent to the execution hereof by the Assuming Institution or any Subsidiary or Affiliate of the Assuming Institution for which indemnification is provided: 

(a) hereunder in this Section 12.1, subject to certain exclusions as provided in Section 12.1(b): 

(i) claims based on the rights of any shareholder or former shareholder as such of (A) the Failed Bank, or (B) any
Subsidiary or Affiliate of the Failed Bank; 
 (ii) claims based on the rights of any creditor as such of the Failed Bank,
or any creditor as such of any director, officer, employee or agent of the Failed Bank, with respect to any indebtedness or other obligation of the Failed Bank arising prior to the Bank Closing Date; 

(iii) claims based on the rights of any present or former director, officer, employee or agent as such of the Failed Bank or
of any Subsidiary or Affiliate of the Failed Bank; 
 (iv) claims based on any action or inaction prior to the Bank Closing
Date of the Failed Bank, its directors, officers, employees or agents as such, or any Subsidiary or Affiliate of the Failed Bank, or the directors, officers, employees or agents as such of such Subsidiary or Affiliate; 

(v) claims based on any malfeasance, misfeasance or nonfeasance of the Failed Bank, its directors, officers, employees or
agents with respect to the trust business of the Failed Bank, if any; 
 (vi) claims based on any failure or alleged failure
(not in violation of law) by the Assuming Institution to continue to perform any service or activity previously performed by the Failed Bank which the Assuming Institution is not required to perform pursuant to this Agreement or which arise under
any contract to which the Failed Bank was a party which the Assuming Institution elected not to assume in accordance with this Agreement and which neither the Assuming Institution nor any Subsidiary or Affiliate of the Assuming Institution has
assumed subsequent to the execution hereof; 
 (vii) claims arising from any action or inaction of any Indemnitee, including
for purposes of this Section 12.1(a)(vii) the former officers or employees of the Failed Bank or of any Subsidiary or Affiliate of the Failed Bank that is taken upon the specific written direction of the Corporation or the Receiver, other than
any action or inaction taken in a manner constituting bad faith, gross negligence or willful misconduct; and 
 (viii)
claims based on the rights of any depositor of the Failed Bank whose deposit has been accorded “withheld payment” status and/or returned to the Receiver or Corporation in accordance with Section 9.5 and/or has become an
“unclaimed deposit” or has been returned to the Corporation or the Receiver in accordance with Section 2.3; 

  

					
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 (b) provided that with respect to this Agreement, except for Section
12.1(a)(vii) and (viii), no indemnification will be provided under this Agreement for any: 
 (i) judgment or fine against,
or any amount paid in settlement (without the written approval of the Receiver) by, any Indemnitee in connection with any action that seeks damages against any Indemnitee (a “Counterclaim”) arising with respect to any Acquired Asset
and based on any action or inaction of either the Failed Bank, its directors, officers, employees or agents as such prior to the Bank Closing Date, unless any such judgment, fine or amount paid in settlement exceeds the greater of (A) the
Repurchase Price of such Acquired Asset, or (B) the monetary recovery sought on such Acquired Asset by the Assuming Institution in the cause of action from which the Counterclaim arises; and in such event the Receiver will provide
indemnification only in the amount of such excess; and no indemnification will be provided for any costs or expenses other than any costs or expenses (including attorneys’ fees) which, in the determination of the Receiver, have been actually
and reasonably incurred by such Indemnitee in connection with the defense of any such Counterclaim; and it is expressly agreed that the Receiver reserves the right to intervene, in its discretion, on its behalf and/or on behalf of the Receiver, in
the defense of any such Counterclaim; 
 (ii) claims with respect to any liability or obligation of the Failed Bank that is
expressly assumed by the Assuming Institution pursuant to this Agreement or subsequent to the execution hereof by the Assuming Institution or any Subsidiary or Affiliate of the Assuming Institution; 

(iii) claims with respect to any liability of the Failed Bank to any present or former employee as such of the Failed Bank or
of any Subsidiary or Affiliate of the Failed Bank, which liability is expressly assumed by the Assuming Institution pursuant to this Agreement or subsequent to the execution hereof by the Assuming Institution or any Subsidiary or Affiliate of the
Assuming Institution; 
 (iv) claims based on the failure of any Indemnitee to seek recovery of damages from the Receiver
for any claims based upon any action or inaction of the Failed Bank, its directors, officers, employees or agents as fiduciary, agent or custodian prior to the Bank Closing Date; 

(v) claims based on any violation or alleged violation by any Indemnitee of the antitrust, branching, banking or bank holding
company or securities laws of the United States of America or any State thereof; 
 (vi) claims based on the rights of any
present or former creditor, customer, or supplier as such of the Assuming Institution or any Subsidiary or Affiliate of the Assuming Institution; 

(vii) claims based on the rights of any present or former shareholder as such of the Assuming Institution or any Subsidiary or
Affiliate of the Assuming Institution regardless of whether any such present or former shareholder is also a present or former shareholder of the Failed Bank; 

  

					
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 (viii) claims, if the Receiver determines that the effect of providing such
indemnification would be to (A) expand or alter the provisions of any warranty or disclaimer thereof provided in Section 3.3 or any other provision of this Agreement, or (B) create any warranty not expressly provided under this
Agreement; 
 (ix) claims which could have been enforced against any Indemnitee had the Assuming Institution not entered
into this Agreement; 
 (x) claims based on any liability for taxes or fees assessed with respect to the consummation of the
transactions contemplated by this Agreement, including without limitation any subsequent transfer of any Acquired Assets or Liabilities Assumed to any Subsidiary or Affiliate of the Assuming Institution or [Ally 1] or [Ally 2]; 

(xi) except as expressly provided in this Article XII, claims based on any action or inaction of any Indemnitee, and nothing
in this Agreement shall be construed to provide indemnification for (i) the Failed Bank, (ii) any Subsidiary or Affiliate of the Failed Bank, or (iii) any present or former director, officer, employee or agent of the Failed Bank or
its Subsidiaries or Affiliates; provided that the Receiver, in its sole and absolute discretion, may provide indemnification hereunder for any present or former director, officer, employee or agent of the Failed Bank or its Subsidiaries or
Affiliates who is also or becomes a director, officer, employee or agent of the Assuming Institution or its Subsidiaries or Affiliates; 

(xii) claims or actions which constitute a breach by the Assuming Institution of the representations and warranties contained
in Article XI; 
 (xiii) claims arising out of or relating to the condition of or generated by an Acquired Asset arising
from or relating to the presence, storage or release of any hazardous or toxic substance, or any pollutant or contaminant, or condition of such Acquired Asset which violate any applicable Federal, State or local law or regulation concerning
environmental protection; and 
 (xiv) claims based on, related to or arising from any asset, including a loan, acquired or
liability assumed by the Assuming Institution, other than pursuant to this Agreement; 
 (c) No indemnification will be
provided pursuant to this Article XII to the Assuming Institution with respect to any asset or liability of the Failed Bank that was purchased or assumed by BANCO POPULAR NORTH AMERICA as provided pursuant to the Alliance Agreement dated
February 18, 2015, FIRSTBANK PUERTO RICO as provided pursuant to the Alliance Agreement dated February 18, 2015, AM PR LLC as provided pursuant to the Alliance Agreement dated February 18, 2015, or CENTENNIAL BANK as provided pursuant
to the Alliance Agreement dated February 13, 2015. 

  

					
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 12.2. Conditions Precedent to Indemnification. It shall be a condition precedent to
the obligation of the Receiver to indemnify any Indemnitee pursuant to this Article XII that such Indemnitee shall, with respect to any claim made or threatened against such Indemnitee for which such Indemnitee is or may be entitled to
indemnification hereunder: 
 (a) give written notice to the Regional Counsel (Litigation Branch) of the Corporation in the
manner and at the address provided in Section 13.6 of such claim as soon as practicable after such claim is made or threatened; provided that notice must be given on or before the date which is six (6) years from the date of this
Agreement; any Indemnitee other than the Assuming Institution will give notice directly to the Receiver and not through the Assuming Institution; 

(b) provide to the Receiver such information and cooperation with respect to such claim as the Receiver may reasonably require; 

(c) cooperate and take all steps, as the Receiver may reasonably require, to preserve and protect any defense to such claim; 

(d) in the event suit is brought with respect to such claim, upon reasonable prior notice, afford to the Receiver the right, which the
Receiver may exercise in its sole and absolute discretion, to conduct the investigation, control the defense and effect settlement of such claim, including without limitation the right to designate counsel and to control all negotiations,
litigation, arbitration, settlements, compromises and appeals of any such claim, all of which shall be at the expense of the Receiver; provided that the Receiver shall have notified the Person claiming indemnification in writing that such claim is a
claim with respect to which such Person is entitled to indemnification under this Article XII; 
 (e) not incur any costs or expenses in
connection with any response or suit with respect to such claim, unless such costs or expenses were incurred upon the written direction of the Receiver; provided that the Receiver shall not be obligated to reimburse the amount of any such costs or
expenses unless such costs or expenses were incurred upon the written direction of the Receiver; 
 (f) not release or settle such claim or
make any payment or admission with respect thereto, unless the Receiver consents thereto; provided that the Receiver shall not be obligated to reimburse the amount of any such settlement or payment unless such settlement or payment was effected upon
the written direction of the Receiver; and 
 (g) take such reasonable action as the Receiver may request in writing as necessary to
preserve, protect or enforce the rights of the Indemnitee against any Primary Indemnitor. 
 12.3. No Additional Warranty.
Nothing in this Article XII shall be construed or deemed to (a) expand or otherwise alter any warranty or disclaimer thereof provided under Section 3.3 or any other provision of this Agreement with respect to, among other matters, the
title, value, collectability, genuineness, enforceability, documentation, condition or freedom from liens or encumbrances, of any (i) Acquired Asset, or (ii) asset of the Failed Bank purchased by the Assuming Institution subsequent to the
execution of this Agreement by the Assuming Institution or any Subsidiary or Affiliate of the Assuming Institution, or (b) create any warranty not expressly provided under this Agreement with respect thereto. 

  

					
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 12.4. Indemnification of Receiver and Corporation. From and after the Bank Closing
Date, the Assuming Institution, BANCO POPULAR NORTH AMERICA, FIRSTBANK PUERTO RICO, AM PR LLC, and CENTENNIAL BANK agree to indemnify and hold harmless the Corporation and the Receiver and their respective directors, officers, employees and agents
from and against any and all costs, losses, liabilities, expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred in connection with any of the following: 

(a) claims based on any and all liabilities or obligations of the Failed Bank assumed by the Assuming Institution pursuant to this Agreement
or subsequent to the execution hereof by the Assuming Institution or any Subsidiary or Affiliate of the Assuming Institution, whether or not any such liabilities subsequently are sold and/or transferred, other than any claim based upon any action or
inaction of any Indemnitee as provided in Section 12.1(a)(vii) or (viii); 
 (b) claims based on any act or omission of any Indemnitee
(including but not limited to claims of any Indemnitee claiming any right or title by or through the Assuming Institution with respect to Acquired Assets transferred to the Receiver pursuant to Section 3.4 or Section 3.6), other than any
action or inaction of any Indemnitee as provided in (vii) or (viii) of Section 12.1(a); and 
 (c) claims based on any
failure of the Assuming Institution to comply with any provision of Article VI. 
 12.5. Obligations Supplemental. The
obligations of the Receiver, and the Corporation as guarantor in accordance with Section 12.7, to provide indemnification under this Article XII are to supplement any amount payable by any Primary Indemnitor to the Indemnitee indemnified under
this Article XII. Consistent with that intent, the Receiver agrees only to make payments pursuant to such indemnification to the extent not payable by a Primary Indemnitor. If the aggregate amount of payments by the Receiver, or the Corporation as
guarantor in accordance with Section 12.7, and all Primary Indemnitors with respect to any item of indemnification under this Article XII exceeds the amount payable with respect to such item, such Person being indemnified shall notify the
Receiver thereof and, upon the request of the Receiver, shall promptly pay to the Receiver, or the Corporation as appropriate, the amount of the Receiver’s (or Corporation’s) payments to the extent of such excess. 

12.6. Criminal Claims. Notwithstanding any provision of this Article XII to the contrary, in the event that any Person being
indemnified under this Article XII shall become involved in any criminal action, suit or proceeding, whether judicial, administrative or investigative, the Receiver shall have no obligation hereunder to indemnify such Person for liability with
respect to any criminal act or to the extent any costs or expenses are attributable to the defense against the allegation of any criminal act, unless (a) the Person is successful on the merits or otherwise in the defense against any such
action, suit or proceeding, or (b) such action, suit or proceeding is terminated without the imposition of liability on such Person. 

12.7. Limited Guaranty of the Corporation. The Corporation hereby guarantees performance of the Receiver’s obligation to
indemnify the Indemnitees as set forth in this Article XII. It is a condition to the Corporation’s obligation hereunder that the Indemnitee shall comply in all respects with the applicable provisions of this Article XII. The Corporation shall
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hereunder only for such amounts, if any, as the Receiver is obligated to pay under the terms of this Article XII but shall fail to pay. Except as otherwise provided above in this
Section 12.7, nothing in this Article XII is intended or shall be construed to create any liability or obligation on the part of the Corporation, the United States of America or any department or agency thereof under or with respect to this
Article XII, or any provision hereof, it being the intention of the parties hereto that the obligations undertaken by the Receiver under this Article XII are the sole and exclusive responsibility of the Receiver and no other Person or entity. 

12.8. Subrogation. Upon payment by the Receiver, or the Corporation as guarantor in accordance with Section 12.7, to any
Indemnitee for any claims indemnified by the Receiver under this Article XII, the Receiver, or the Corporation as appropriate, shall become subrogated to all rights of the Indemnitee against any other Person to the extent of such payment. 

12.9. Successor Liability under Puerto Rico Act 80. Notwithstanding any other provision in this Agreement, from and after Bank
Closing: 
 (a) any claim by a Failed Bank employee against the Assuming Institution and based, in whole or in part, on any successor
liability arising by operation of law pursuant to Puerto Rico Act No. 80 of May 30, 1976, as amended (“Act 80”), including a claim for severance or enhanced severance, shall be subject to indemnity under Section 12.1(a)(iii)
and shall not be excluded from indemnity by reason of Section 12.1(b), other than a claim for salary for the period from the Bank Closing until the Assuming Institution determines not to retain a Failed Bank employee pursuant to
Section 4.12; and 
 (b) any claim for severance or enhanced severance against the Assuming Institution by a Failed Bank employee not
determined to be retained by the Assuming Institution pursuant to Section 4.12 shall, to the extent based on Act 80, be subject to indemnity under Section 12.1(a)(iii) and shall not be excluded from indemnity by reason of
Section 12.1(b). The Assuming Institution shall not be subject to indemnification for (i) claims based upon the violation by the Assuming Institution of other statutes or provisions of the Puerto Rico constitution, or (ii) claims for
severance or enhanced severance under subsection (b) of this section arising from terminations of employment by the Assuming Institution occurring after one year of the signing of this Agreement. 

ARTICLE XIII. MISCELLANEOUS. 

13.1. Costs, Fees, and Expenses. All fees, costs and expenses incurred by a party in connection with this
Agreement (including the performance of any obligations or the exercise of any rights hereunder) shall be borne by such party unless expressly otherwise provided; provided that the Assuming Institution shall pay all fees, costs and expenses (other
than attorneys’ fees incurred by the Receiver) incurred in connection with the transfer to it of any Acquired Assets or Liabilities Assumed hereunder or in accordance herewith. Further, the Assuming Institution shall be responsible for the
payment of MERS routine transaction charges. 
 13.2. WAIVER OF JURY TRIAL. EACH PARTY HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY 

  

					
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APPLICABLE LAW, ALL RIGHT TO TRIAL BY JURY IN OR TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, ARISING
OUT OF OR RELATING TO OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY. 
 13.3.
Consent; Determination or Discretion. When the consent or approval of a party is required under this Agreement, such consent or approval shall be obtained in writing and unless expressly otherwise provided, shall not be unreasonably
withheld or delayed. When a determination or decision is to be made by a party under this Agreement, that party shall make such determination or decision in its reasonable discretion unless expressly otherwise provided. 

13.4. Rights Cumulative. Except as expressly otherwise provided herein, the rights of each of the parties under
this Agreement are cumulative, may be exercised as often as any party considers appropriate and are in addition to each such party’s rights under this Agreement, any of the agreements related thereto or under applicable law. Any failure to
exercise or any delay in exercising any of such rights, or any partial or defective exercise of such rights, shall not operate as a waiver or variation of that or any other such right, unless expressly otherwise provided. 

13.5. References. References in this Agreement to Recitals, Articles, Sections, Schedules and Exhibits are to
Recitals, Articles, Sections, Schedules and Exhibits of this Agreement, respectively. References to parties are to the parties to this Agreement. Unless expressly otherwise provided, references to days and months are to calendar days and months
respectively. In any case where a notice or other action is due on a day which is not a Business Day, such notice or other action may be delayed until the next-succeeding Business Day. Article and Section headings are for convenient reference and
shall not affect the meaning of this Agreement. References to the singular shall include the plural, as the context may require, and vice versa. 

13.6. Notice. 

(a) Form of Notices. All notices shall be given in writing and provided in accordance with the provisions of this Section 13.6,
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 (b) Notice to the Receiver or the Corporation. With respect to a notice under this
Agreement: 
 Federal Deposit Insurance Corporation 

1601 Bryan Street 
 Dallas,
Texas 75201 
 Attention: Settlement Agent 

In addition, with respect to notices under Section 4.6, with a copy to: 

BankPremiseNotice@fdic.gov 

In addition, with respect to notice under Article XII: 

Regional Counsel (Litigation Branch) 

1601 Bryan Street 
 Dallas, TX
75201 
 In addition, with respect to communications under Exhibit 4.13, a copy to: 

Federal Deposit Insurance Corporation 

1601 Bryan Street 
 Dallas,
Texas 75201 
 Attention: Interim Servicing Manager, 

(c) Notice to Assuming Institution. With respect to a notice under this Agreement: 

Banco Popular de Puerto Rico 

209 Munoz Rivera Avenue 
 Hato
Rey, PR 00918 
 Attention: Richard C. Carrion, CEO & Chmn 

with a copy to: Javier D. Ferrer 

Telephone: 787-763-6405 

Facsimile: 787-756-0277 

13.7. Entire Agreement. This Agreement, including the Schedules and Exhibits hereto and thereto, embody the
entire agreement of the parties hereto in relation to the subject matter herein and supersede all prior understandings or agreements, oral or written, between the parties. 

13.8. Counterparts. This Agreement may be executed in any number of counterparts and by the duly authorized
representative of a different party hereto on separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same Agreement. 

13.9. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED
IN 

  

					
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ACCORDANCE WITH THE FEDERAL LAW OF THE UNITED STATES OF AMERICA, AND IN THE ABSENCE OF CONTROLLING FEDERAL LAW, IN ACCORDANCE WITH THE LAWS OF THE STATE IN WHICH THE MAIN OFFICE OF THE FAILED
BANK IS LOCATED. 
 13.10. Successors and Assigns. 

(a) Binding on Successors and Assigns; Assignment. All terms and conditions of this Agreement shall be binding on the successors and
assigns of the Receiver, the Corporation and the Assuming Institution. The Receiver may assign or otherwise transfer this Agreement and the rights and obligations of the Receiver hereunder (in whole or in part) to the Corporation in its corporate
capacity without the consent of Assuming Institution. Notwithstanding anything to the contrary contained in this Agreement, the Assuming Institution may not assign or otherwise transfer this Agreement or any of the Assuming Institution’s rights
or obligations hereunder (in whole or in part) without the prior written consent of the Receiver, which consent may be granted or withheld by the Receiver in its sole and absolute discretion. 

(b) No Third Party Beneficiaries. Except as specified in (c), below, nothing expressed or referred to in this Agreement is intended or
shall be construed to give any Person other than the Receiver, the Corporation and the Assuming Institution any legal or equitable right, remedy or claim under or with respect to this Agreement or any provisions contained herein, it being the
intention of the parties hereto that this Agreement, the obligations and statements of responsibilities hereunder, and all other conditions and provisions hereof are for the sole and exclusive benefit of the Receiver, the Corporation and the
Assuming Institution and for the benefit of no other Person. 
 (c) Specific Third Party Beneficiaries Under Article XII Only. BANCO
POPULAR NORTH AMERICA, FIRSTBANK PUERTO RICO, AM PR LLC, and CENTENNIAL BANK are third party beneficiaries under Article XII of this Agreement, but only to the extent they meet the definition and conditions of as Indemnitee under this Agreement and
the conditions under Article XII of this Agreement, and only for the term of this Agreement. These specified entities are not third party beneficiaries under any other Articles of this Agreement. 

13.11. Modification. No amendment or other modification, rescission or release of any part of this Agreement, shall be effective
except pursuant to a written agreement subscribed by the duly authorized representatives of the parties. 
 13.12. Manner of
Payment. All payments due under this Agreement shall be in lawful money of the United States of America in immediately available funds as each party hereto may specify to the other parties; provided that in the event the Receiver or the
Corporation is obligated to make any payment hereunder in the amount of $25,000.00 or less, such payment may be made by check. 
 13.13.
Waiver. Each of the Receiver, the Corporation and the Assuming Institution may waive its respective rights, powers or privileges under this Agreement; provided that such waiver shall be in writing; and further provided that no failure or
delay on the part of the Receiver, the Corporation or the Assuming Institution to exercise any right, power or privilege under this 

  

					
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Agreement shall operate as a waiver thereof, nor will any single or partial exercise of any right, power or privilege under this Agreement preclude any other or further exercise thereof or the
exercise of any other right, power or privilege by the Receiver, the Corporation or the Assuming Institution under this Agreement, nor will any such waiver operate or be construed as a future waiver of such right, power or privilege under this
Agreement. 
 13.14. Severability. If any provision of this Agreement is declared invalid or unenforceable, then, to the
extent possible, all of the remaining provisions of this Agreement shall remain in full force and effect and shall be binding upon the parties hereto. 

13.15. Term of Agreement. This Agreement shall continue in full force and effect until the sixth (6th) anniversary of the
Bank Closing Date; provided that the provisions of Sections 6.3 and 6.4 shall survive the expiration of the term of this Agreement; and provided further that the receivership of the Failed Bank may be terminated prior to the expiration of the term
of this Agreement, and in such event, the guaranty of the Corporation, as provided in and in accordance with the provisions of Section 12.7, shall be in effect for the remainder of the term of this Agreement. Expiration of the term of this
Agreement shall not affect any claim or liability of any party with respect to any (a) amount which is owing at the time of such expiration, regardless of when such amount becomes payable, and (b) breach of this Agreement occurring prior
to such expiration, regardless of when such breach is discovered. 
 13.16. Survival of Covenants, Etc. The covenants,
representations, and warranties in this Agreement shall survive the execution of this Agreement and the consummation of the transactions contemplated hereunder. 

13.17 Right of Receiver or Corporation to Audit. The Receiver or the Corporation, their respective agents, contractors and
employees, may (but are not required to) perform an audit to determine the Assuming Institution’s compliance with this Agreement at any time, by providing not less than ten (10) Business Days prior notice. The scope and duration of any
such audit shall be at the discretion of the Receiver or the Corporation, as the case may be. The Receiver or the Corporation, as the case may be, shall bear the expense of any such audit. In the event that any corrections are necessary as a result
of such an audit, the Assuming Institution and the Receiver shall make such accounting adjustments, payments and withholdings as may be necessary to give retroactive effect to such corrections. 

[Signature Page Follows] 

  

					
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	Version 6.4P – PURCHASE AND ASSUMPTION AGREEMENT				San Juan, PR

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
duly authorized representatives as of the date first above written. 
  

							
					 FEDERAL DEPOSIT INSURANCE CORPORATION,

RECEIVER OF DORAL BANK

					SAN JUAN, PUERTO RICO
				
					BY:		  

				
					NAME:		  

				
					TITLE:		  

				
	Attest:						
				
	  
						
			
					FEDERAL DEPOSIT INSURANCE CORPORATION
				
					BY:		  

				
					NAME:		  

				
					TITLE:		  

				
	Attest:						
				
	  
						
			
					BANCO POPULAR DE PUERTO RICO
				
					BY:		  

				
					NAME:		  

				
					TITLE:		  

				
	Attest:						
				
	  
						

  

					
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 SCHEDULE 2.1(a) EXCLUDED DEPOSIT LIABILITY ACCOUNTS Doral Bank has deposits associated with the Depository Organization (DO)
Cede & Co as Nominee for DTC. The DO accounts do not pass to the Assuming Bank and are excluded from the transaction as described in section 2.1 of the P&A Agreement. The attached Schedule 2.1.a DO Detail Report identifies the DO
accounts as of 12/31/2014. The attached Schedule 2.1 a “Exhibit B” identifies a DFC Holding Company account that will not pass to the Assuming institution and is excluded from the transaction as described in section 2.1 of the P&A
Agreement. This schedule will be updated post closing with data as of Bank Closing date. As of 12/31/2015 Stated Current Coupon Maturity Outstanding Issue Cusip Position ID Rate All-In Cost Date Balance Price Book Value 

  

					
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 1.22 1.43 703,891,000 702,729,322 
Schedule 2.1 a
“Exhibit B” 
Schedule 2.1a (Deposits excluded) 
Date Last Class
Category Product DDA Current Updated Code Number Account Balance 02/24/2015 8 DDA AFFILIATES DFC 10111 240000112 $151,462.96 
Total $151,462.96 

  

					
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	Version 6.4P – PURCHASE AND ASSUMPTION AGREEMENT				San Juan, PR

 SCHEDULE 3.1(h) 

ACQUIRED SUBSIDIARIES 

NONE. 

  

					
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	Version 6.4P – PURCHASE AND ASSUMPTION AGREEMENT				San Juan, PR

 

 
 SCHEDULE 3.1(n) 
ACQUIRED ASSETS IN OPTIONAL LOAN
POOLS 
Loan Pools 10, 20, 30, 60, Performing 80, 100, 200, 300, 400 and 500. Detailed lists to be attached at closing. 
ASSETS SPECIFICALLY EXCLUDED FROM ANY OF THE OPTIONAL LOAN POOLS 
Schedule 3.1(n) Excluded
Items 
1.) The capital stock of Doral Money, Inc. 
2.) Revolving Credit Grid
Note dated October 12, 2011 in the amount of $2.5 billion from Doral Money, Inc. payable to Doral Bank. 
(This $2.5 billion revolving credit agreement between
Doral Money, Inc. and Doral Bank is dated October 12, 2011 of which the balance outstanding as of 12/31/14 $188,145,055.90 . This note is part of the “Doral Money Asset Package.” 
3.) Doral Bank GL Account #340000050 as of 12/31/14: $2,924,803.21 4.) Doral Bank GL Account #340000054 as of 12/31/14: $154.04 5.) Doral Bank GL Account #567000050 as of 12/31/14:
($3,266.26) 6.) Any other related accounts and or GL accounts between Doral Bank and Doral Money, Inc. 
7.) An assignment of the Doral Bank’s Collateral
Management Rights and obligations in CLO I, CLO II, and CLO III 
8.) Mortgage Servicing Rights (MSR’s) 
9.) All Mortgage Servicing Advances 

  

					
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	Version 6.4P – PURCHASE AND ASSUMPTION AGREEMENT				San Juan, PR

 SCHEDULE 3.1(o) 

OTHER REAL ESTATE 
 NONE.

  

					
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	Version 6.4P – PURCHASE AND ASSUMPTION AGREEMENT				San Juan, PR

 SCHEDULE 3.2 

PURCHASE PRICE OF ACQUIRED ASSETS 
  

							
	(a)		cash and receivables from depository institutions, including cash items in the process of collection, plus interest thereon:				Book Value
				
	(b)		securities (exclusive of the capital stock of Acquired Subsidiaries and FHLB stock), plus interest thereon:				As provided in Section 3.2(b)
				
	(c)		federal funds sold and repurchase agreements, if any, including interest thereon:				Book Value
				
	(d)		Loans, other than those in Optional Loan Pools:				Book Value
				
	(e)		credit card business:				Book Value
				
	(f)		safe deposit business, safekeeping business and trust business, if any:				Book Value
				
	(g)		Failed Bank Records and other documents:				Book Value
				
	(h)		Loans in Optional Loan Pools:				As set forth on the Bid Form
				
	(i)		all repossessed collateral, such as boats, motor vehicles, aircraft, trailers, and fire arms				Book Value
				
	(j)		capital stock of any Acquired Subsidiaries (subject to Section 3.2(b), and FHLB stock:				Book Value
				
	(k)		amounts owed to the Failed Bank by any Acquired Subsidiaries:				Book Value
				
	(l)		assets securing Deposits of public money, to the extent not otherwise purchased hereunder:				Book Value
				
	(m)		overdrafts of customers:				Book Value
				
	(n)		rights, if any, with respect to Qualified Financial Contracts:				As provided in Section 3.2(c)

  

					
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	(o)		rights of the Failed Bank to have loan servicing provided to the Failed Bank by others and related contracts:				Book Value
				
	(p)		Personal Computers and Owned Data Management Equipment:				Fair Market Value
				
	(q)		Safe Deposit Boxes				Fair Market Value
	
	Assets subject to an option to purchase:
				
	 (a)
		Bank Premises with a fixed price:				As set forth on the Bid Form
				
			All other Bank Premises				Fair Market Value
				
	 (b)
		Furniture and Equipment:				Fair Market Value
				
	 (c)
		Fixtures:				Fair Market Value
				
	 (d)
		Other Equipment:				Fair Market Value
				
	 (e)
		Specialty Assets				Fair Market Value

  

					
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 SCHEDULE 3.1(o) OTHER REAL ESTATE 
NONE.

SCHEDULE 3.5(l) EXCLUDED SECURITIES 
ORIGINAL MATURITY 
CUSIP ASSET NAME/DESCRIPTION FACE/PAR DATE BOOK VALUE 
TOTAL $ 

  

					
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 SCHEDULE 4.1(b) 

BANK PREMISES IN UNDERSERVED AREAS 

NONE. 

  

					
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 SCHEDULE 6.3 

DATA RETENTION CATALOG 

FDIC Data Management Services (DMS) 

Acquirer Data Retention Catalog 

Version 3.0 
 Failed Institution 

Name 
 Data Center
Address 
 Assuming Institution 

Name 
 Address 

DRC Preparation Date 
 DRC Preparer’s Contact

 Name 

Designation 
 Phone

 Email 
 Alternate Contact for
Subsequent Data Requests (if different from above) 
 Name 

Phone 
 Email 

Instructions 
  

	1.	Provide preparer’s contact information and Bank information on the “Cover Page” tab. 

  

	2.	Provide point of contact and desired procedure for data requests on the “Data Request Procedure” Tab. 

  

	3.	Provide the requested application retention details on “Data Retention” tab of this workbook. 

  

	 	a.	Update provided application list with any additional systems that were not included 

  

	 	b.	Select the most appropriate value from the drop down list when the list is provided with applicable column. 

If you need additional clarification while recording the information, please call Kevin Sheehan (FDIC) at 703-562-2012 or Leslie Bowie
(FDIC ) at 703-562-6262. Send the final copy of this document to FDICDRCSubmission@fdic.gov. 

  

					
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 SCHEDULE 7 
The accounts identified below will pass
to the Assuming Institution (unless otherwise noted). When calculating the premium to be paid on Assumed Deposits in a purchase and assumption transaction, the FDIC will exclude the following categories of deposit accounts: 
Category Description Amount 
I Non-DO Brokered Deposits $ 5,593,180.00 II CDARS $ 0.00 III
Market Place Deposits $429,501,760.35 IV Employee Account Branch – 88PR (2/16/2015) $125,831,290.41 Total deposits excluded from calculation of premium $560,926,230.76 
Category Description I. Brokered Deposits 
Brokered deposit accounts are accounts for which the
“depositor of record” is an agent, nominee or custodian who deposits funds for a principal or principals to whom “pass-through” deposit insurance coverage may be extended. The FDIC separates brokered deposit accounts into two
categories: 1) Depository Organization (DO) Brokered Deposits and 2) Non-Depository Organization (Non-DO) Brokered Deposits. This distinction is made by the FDIC to facilitate our role as Receiver and Insurer. These terms will not appear on other
“brokered deposit” reports generated by Doral Bank Bank. 
Non-DO Brokered Deposits pass to the Assuming Institution, but are excluded from Assumed
Deposits when the deposit premium is calculated. Please see the attached “Schedule 7 – Non-DO Broker Deposit Detail Report” for a listing of these accounts. This list will be updated post closing with balances as of the Bank Closing
Date. 
Doral Bank has DO Brokered Deposits (Cede & Co as Nominee for DTC) and they are excluded from Assumed Deposits in the Purchase and Assumption
Agreement. 
II. CDARS 
CDARS deposits pass to the Assuming Institution, but are
excluded from Assumed Deposits when the deposit premium is calculated. 
Doral Bank did not participate in the CDARS program as of the date of the deposit download.
If CDARS deposits are taken between the date of the deposit download and the Bank Closing Date, they will be identified post closing and made part of Schedule 7 to the Purchase and Assumption Agreement. 

  

					
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 III. Market Place Deposits 
“Market Place
Deposits” is a description given to deposits that may ® have been solicited via a money desk, internet subscription service (for example, QwickRate ), or similar programs. 
Doral Bank does have Internet deposits as identified above. The Internet deposits are reported as time deposits in the Call Report. Doral Bank uses “Branch 62NY and 63NY on
their system to identify Internet deposits. Please see the attached “Schedule 7 – Internet Deposit Detail Report” for a listing of these accounts as of December 31, 2014. This list will be updated post closing with balances as of
the Bank Closing Date. 
IV. 88PR – Employee Account Branch Deposits

“Employee Account Branch Deposits” have been identified as being mostly Doral Bank (including subsidiaries and affiliates) owned deposits and not core
deposits. Doral Bank uses “Branch 88PR” on their system to identify these deposits. No deposit premium will be paid on these accounts as they are mostly internal accounts and thus primarily not customers. 
This schedule provides account categories and balances as of the date of the deposit download, or as indicated. The deposit franchise bid premium will be calculated using account
categories and balances as of the Bank Closing Date that are reflected in the general ledger or subsystem as described above. The final numbers for Schedule 7 will be provided post closing. 

  

					
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 Schedule 7 – Deposit Detail Report—Non-DO Broker 
Account Number Insured Amount XX Amount PH Amount 

  

					
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 Totals $0.00 $0.00 $5,593,179.93 

  

					
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 Schedule 7 – Deposit Detail Report—QwickRate® 
Accrued Branch Account No City State Current Balance Interest 

  

					
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 Totals $428,997,680.67 $504,079.68 

  

					
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 Employee Account Branch – 88PR 
AS-OF 02062015

BANK OWNED Branch AcctNumConcat CurrBal AccrInt ACCT 

  

					
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 125,982,371.33 382.04 
Bank Owned 123,896,977.01

Non-Bank Owned 2,085,394.32 382.04 

  

					
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 EXHIBIT 2.3A 

FINAL LEGAL NOTICE 

Claiming Requirements for Deposits 

Under 12 U.S.C. 1822(e) 
 [Date]

 [Name of Unclaimed Depositor] 
 [Address of
Unclaimed Depositor] 
 [Anytown, USA] 
  

			
	Subject:		[XXXXX – Name of Bank
			City, State] – In Receivership

 Dear [Sir/Madam]:  

As you may know, on [Date: Closing Date], the [Name of Bank (“The Bank”)] was closed and the Federal
Deposit Insurance Corporation (“FDIC”) transferred [The Bank’s] accounts to [Name of Assuming Institution].  

According to federal law under 12 U.S.C., 1822(e), on [Date: eighteen months from the Closing Date], [Name of Assuming
Institution] must transfer the funds in your account(s) back to the FDIC if you have not claimed your account(s) with [Name of Assuming Institution]. Based on the records recently supplied to us by [Name of Assuming Institution],
your account(s) currently fall into this category. 
 This letter is your formal Legal Notice that you have until [Date: eighteen months
from the Closing Date], to claim or arrange to continue your account(s) with [Name of Assuming Institution]. There are several ways that you can claim your account(s) at [Name of Assuming Institution]. It is only necessary for you
to take any one of the following actions in order for your account(s) at [Name of Assuming Institution] to be deemed claimed. In addition, if you have more than one account, your claim to one account will automatically claim all accounts:

  

	1.	Write to [Name of Assuming Institution] and notify them that you wish to keep your account(s) active with them. Please be sure to include the name of the account(s), the account number(s), the signature of an
authorized signer on the account(s), name, and address. [Name of Assuming Institution] address is: 

 [123 Main Street

 Anytown, USA] 
  

	2.	Execute a new signature card on your account(s), enter into a new deposit agreement with [Name of Assuming Institution], change the ownership on your account(s), or renegotiate the terms of your certificate of
deposit account(s) (if any). 

  

	3.	Provide [Name of Assuming Institution] with a change of address form. 

  

	4.	Make a deposit to or withdrawal from your account(s). This includes writing a check on any account or having an automatic direct deposit credited to or an automatic withdrawal debited from an account. 

  

					
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 If you do not want to continue your account(s) with [Name of Assuming Institution] for any
reason, you can withdraw your funds and close your account(s). Withdrawing funds from one or more of your account(s) satisfies the federal law claiming requirement. If you have time deposits, such as certificates of deposit, [Name of Assuming
Institution] can advise you how to withdraw them without being charged an interest penalty for early withdrawal. 
 If you do not claim
ownership of your account(s) at [Name of Assuming Institution by Date: eighteen months from the Closing Date] federal law requires [Name of Assuming Institution] to return your deposits to the FDIC, which will deliver them as unclaimed
property to the State indicated in your address in the Failed Institution’s records. If your address is outside of the United States, the FDIC will deliver the deposits to the State in which the Failed Institution had its main office. 12 U.S.C.
§ 1822(e). If the State accepts custody of your deposits, you will have 10 years from the date of delivery to claim your deposits from the State. After 10 years you will be permanently barred from claiming your deposits. However, if the State
refuses to take custody of your deposits, you will be able to claim them from the FDIC until the receivership is terminated. If you have not claimed your insured deposits before the receivership is terminated, and a receivership may be terminated at
any time, all of your rights in those deposits will be barred. 
 If you have any questions or concerns about these items, please contact
[Bank Employee] at [Name of Assuming Institution] by phone at [(XXX) XXX-XXXX].  
 Sincerely, 

[Name of Claims Specialist] 

[Title] 

  

					
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 EXHIBIT 2.3B 

AFFIDAVIT OF MAILING 
 AFFIDAVIT OF
MAILING 
 State of 
 COUNTY OF 

I am employed as a [Title of Office] by the [Name of Assuming Institution]. 

This will attest that on [Date of mailing], I caused a true and correct copy of the Final Legal Notice, attached hereto, to owners of unclaimed
deposits of [Name of Failed Bank], City, State, to be prepared for deposit in the mail of the United States of America on behalf of the Federal Deposit Insurance Corporation. A list of depositors to whom the notice was mailed is attached.
This notice was mailed to the depositor’s last address as reflected on the books and records of the [Name of Failed Bank] as of the date of failure. 
  

	
	  

	[Name]
	[Title of Office]
	[Name of Assuming Institution]

 Subscribed and sworn to before me this      day of [Month, Year]. 

My commission expires: 
  

					
	  
				  

					[Name], Notary Public

  

					
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 EXHIBIT 3.2(c) 

VALUATION OF CERTAIN 

QUALIFIED FINANCIAL CONTRACTS 
  

	A.	Scope 

 Interest Rate Contracts - All interest rate swaps, forward rate agreements,
interest rate futures, caps, collars and floors, whether purchased or written. 
 Option Contracts - All put and call option contracts,
whether purchased or written, on marketable securities, financial futures, foreign currencies, foreign exchange or foreign exchange futures contracts. 

Foreign Exchange Contracts - All contracts for future purchase or sale of foreign currencies, foreign currency or cross currency swap
contracts, or foreign exchange futures contracts. 
  

	B.	Exclusions 

 All financial contracts used to hedge assets and liabilities that are
acquired by the Assuming Institution but are not subject to adjustment from Book Value. 
  

	C.	Adjustment 

 The difference between the Book Value and market value as of the Bank
Closing Date. 
  

	D.	Methodology 

 1. The price at which the Assuming Institution sells or disposes of
Qualified Financial Contracts will be deemed to be the fair market value of such contracts, if such sale or disposition occurs at prevailing market rates within a predefined timetable as agreed upon by the Assuming Institution and the Receiver. 

2. In valuing all other Qualified Financial Contracts, the following principles will apply: 

 

	 	(i)	All known cash flows under swaps or forward exchange contracts shall be present valued to the swap zero coupon interest rate curve. 

  

	 	(ii)	All valuations shall employ prices and interest rates based on the actual frequency of rate reset or payment. 

  

					
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	 	(iii)	Each tranche of amortizing contracts shall be separately valued. The total value of such amortizing contract shall be the sum of the values of its component tranches. 

 

	 	(iv)	For regularly traded contracts, valuations shall be at the midpoint of the bid and ask prices quoted by customary sources (e.g., The Wall Street Journal, Telerate, Reuters or other similar source) or regularly traded
exchanges. 

  

	 	(v)	For all other Qualified Financial Contracts where published market quotes are unavailable, the adjusted price shall be the average of the bid and ask price quotes from three (3) securities dealers acceptable to the
Receiver and Assuming Institution as of the Bank Closing Date. If quotes from securities dealers cannot be obtained, an appraiser acceptable to the Receiver and the Assuming Institution will perform a valuation based on modeling, correlation
analysis, interpolation or other techniques, as appropriate. 

  

					
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 EXHIBIT 4.13 

INTERIM ASSET SERVICING ARRANGEMENT 

This Interim Asset Servicing Arrangement is made pursuant to and as of the date of that certain Purchase and Assumption Agreement (the
“Purchase and Assumption Agreement”) among the Receiver, the Assuming Institution and the Corporation, to which this Arrangement is attached. Capitalized terms used and not otherwise defined in this Exhibit 4.13 shall have the
meanings assigned to such terms in the Agreement. 
 (a) With respect to each asset or liability designated from time to time by the
Receiver to be serviced by the Assuming Institution pursuant to this Interim Asset Servicing Arrangement (the “Arrangement”), including any assets or liabilities sold or conveyed by the Receiver to any party other than the Assuming
Institution (any such party, a “Successor Owner”) but with respect to which the Receiver has an obligation to service or provide servicing support (such assets and liabilities, the “Pool Assets”), for certain loans
(the “Loans”) during the term of this Arrangement the Assuming Institution shall service or provide servicing support to the Pool Assets as described in this Exhibit 4.13. 

If the Assuming Institution is an approved or qualified servicer for any government sponsored entity (each, a “GSE”) or GNMA
and if any of the Loans are owned by a GSE or GNMA, the Assuming Institution shall service or provide servicing support for the Loans owned by a GSE or GNMA in accordance with the guidelines promulgated by and its agreements with the applicable GSE
or GNMA. If the Assuming Institution is not an approved or qualified servicer for a GSE or GNMA or the Loans are not owned by a GSE or GNMA, then the Assuming Institution shall service or provide servicing support for the Loans in accordance with
the following: 
 (i) promptly post and apply payments received to the applicable system of record; 

(ii) reverse and return insufficient funds checks; 

(iii) pay (A) participation payments to participants in Loans, as and when received; (B) tax and insurance bills, as they come due,
out of any escrow funds maintained for such purposes; and (C) unfunded commitments and protective advances out of any escrow funds created for such purposes; 

(iv) process funding draws under Loans and protective advances in connection with collateral and acquired property, in each case, as and to
the extent authorized and funded by the Receiver; 
 (v) maintain in use all data processing equipment and systems and other systems of
record on which any activity with respect to any Pool Assets are, or prior to the Bank Closing Date, were, recorded, and maintain all historical data on any such systems as of the Bank 

  

					
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Closing Date and not, without the express consent of the Receiver (which consent must be sought at least sixty (60) days prior to taking any action), deconvert, remove, transfer or otherwise
discontinue use of any of the Failed Bank’s systems of record with respect to any Pool Asset; 
 (vi) maintain accurate records
reflecting (A) payments received by the Assuming Institution, (B) information received by the Assuming Institution concerning changes in the address or identity of any Obligor and (C) other servicing actions taken by the Assuming
Institution, including checks returned for insufficient funds; 
 (vii) send (A) billing statements to Obligors on Pool Assets (to the
extent that such statements were sent by the Failed Bank or as are requested by the Receiver) and (B) notices to Obligors who are in default on Loans (in the same manner as the Failed Bank or as are requested by the Receiver); 

(viii) employ a sufficient number of qualified employees to provide the services required to be provided by the Assuming Institution pursuant
to this Arrangement (with the number and qualifications of such employees to be not less than the number and qualifications of employees employed by the Failed Bank to perform such functions as of the Bank Closing Date); 

(ix) hold in trust any Credit Files and any servicing files in the possession or on the premises of the Assuming Institution for the Receiver
or the Successor Owner (as applicable) and segregate from the other books and records of the Assuming Institution and appropriately mark such Credit Files and servicing files to clearly reflect the ownership interest of the Receiver or the successor
owner (as applicable); 
 (x) send to the Receiver (indicating closed bank name and number), Attn: Interim Servicing Manager, at the email
address provided in Section 13.6 of the Purchase and Assumption Agreement, or to such other person at such address as the Receiver may designate, via overnight delivery: (A) on a weekly basis, weekly reports, including, without limitation,
reports reflecting collections and trial balances, and (B) any other reports, copies or information as may be requested from time to time by the Receiver, including, if requested, copies of (1) checks or other remittances received,
(2) insufficient funds checks returned, (3) checks or other remittances for payment to participants or for taxes, insurance, funding advances and protective advances, (4) pay-off requests, and (5) notices to defaulted Obligors;

 (xi) remit on a weekly basis to the Receiver (indicating closed bank name and number), Attn: DRR Cashier Unit, Business Operations
Support Branch, in the same manner as provided in paragraph (a)(x), via wire transfer to the account designated by the Receiver, or to such other person at such other address and/or account as the Receiver may designate, all payments received; 

(xii) prepare and timely file all information reports with appropriate tax authorities, and, if requested by the Receiver, prepare and file
tax returns and remit taxes due on or before the due date; 

  

					
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 (xiii) provide and furnish such other services, operations or functions, including, without
limitation, with regard to any business, enterprise or agreement which is a Pool Asset, as may be requested by the Receiver; 
 (xiv)
establish a custodial account for the Receiver and for each successor owner at the Assuming Institution, each of which shall be interest bearing, titled in the name of Assuming Institution, in trust for the Receiver or the successor owner (as
applicable), in each case as the owner, and segregate and hold all funds collected and received with respect to the Pool Assets separate and apart from any of the Assuming Institution’s own funds and general assets; and 

(xv) no later than the end of the second Business Day following receipt thereof, deposit into the applicable custodial account and retain
therein all funds collected and received with respect to the Pool Assets. 
 Notwithstanding anything to the contrary in this Exhibit, the Assuming
Institution shall not be required to initiate litigation or other collection proceedings against any Obligor or any collateral with respect to any defaulted Loan. The Assuming Institution shall promptly notify the Receiver, at the address referred
to above in paragraph (a)(x), of any claims or legal actions regarding any Pool Asset. 
 (b) In consideration for the provision of the
services provided pursuant to this Arrangement, the Receiver agrees to reimburse the Assuming Institution for the actual, reasonable and necessary expenses incurred in connection with the performance of its duties pursuant to this Arrangement,
including shared services of photocopying, postage, express mail, core data processing (allocated on a per loan basis based on historical actual costs) and amounts paid for employee services (based upon the number of hours spent performing servicing
duties). 
 (c) The Assuming Institution shall provide the services described herein for a term of up to one hundred-eighty (180) days
after the Bank Closing Date. The Receiver may terminate the Arrangement at any time upon not less than sixty (60) days notice to the Assuming Institution without any liability or cost to the Receiver other than the fees and expenses due to the
Assuming Institution as of the termination date pursuant to paragraph (b) above. 
 (d) At any time during the term of this
Arrangement, the Receiver may, upon not less than thirty (30) days prior written notice to the Assuming Institution, remove one or more Pool Assets, and at the time of such removal the Assuming Institution’s responsibility with respect
thereto shall terminate. 
 (e) At the expiration of this Arrangement or upon the termination of the Assuming Institution’s
responsibility with respect to any Pool Asset pursuant to paragraph (d) hereof, the Assuming Institution shall: 
 (i)
deliver to the Receiver (or its designee) all of the Credit Documents and records relating to the Pool Assets; and 
 (ii)
cooperate with the Receiver to facilitate the orderly transition of managing the Pool Assets to the Receiver or its designees (including, without limitation, its contractors and persons to which any Pool Assets are conveyed). 

  

					
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 (f) At the request of the Receiver, the Assuming Institution shall perform such transitional
services with regard to the Pool Assets as the Receiver may request. Transitional services may include, without limitation, assisting in any due diligence process deemed necessary by the Receiver and providing to the Receiver and its designees
(including, without limitation, its contractors and any actual or potential successor owners) (i) information and data regarding the Pool Assets, including, without limitation, system reports and data downloads sufficient to transfer the Pool
Assets to another system or systems and to facilitate due diligence by actual and potential successor owners, and (ii) access to employees of the Assuming Institution involved in the management of, or otherwise familiar with, the Pool Assets.

 (g) Until such time as the Arrangement expires or is terminated, without limitation of its obligations set forth above or in the Purchase
and Assumption Agreement and without any additional consideration (other than that set forth in paragraph (b) above), the Assuming Institution shall provide the Receiver and its designees (including, without limitation, its contractors and
actual and potential successor owners) with the following, as the same may be requested: 
 (i) access to and the ability to
obtain assistance and information from personnel of the Assuming Institution, including former personnel of the Failed Bank and personnel of third party consultants; 

(ii) access to and the ability to use and download information from data processing systems and other systems of record on
which information regarding Pool Assets or any assets transferred to or liabilities assumed by the Assuming Institution is stored or maintained (regardless of whether information with respect to other assets or liabilities is also stored or
maintained thereon); and 
 (iii) access to and the ability to use and occupy office space (including parking facilities and
vault space), facilities, utilities (including local telephone service and facsimile machines), furniture, equipment (including photocopying and facsimile machines), and technology and connectivity (including email accounts, network access and
technology resources such as shared drives) in the Bank Premises occupied by the Assuming Institution. 

  

					
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FIXED $$ DISCOUNTED SHARE BUYBACK (“DSB”) COLLARED WITH INITIAL DELIVERY

 

	
To:
    	
The   Cheesecake Factory Incorporated (“Counterparty”)
    
	
 
    	
26901   Malibu Hills Road
    
	
 
    	
Calabasas   Hills, California  91301
    
	
 
    	
 
    
	
From:
    	
Wells   Fargo Bank, National Association (“Wells Fargo”)
    

 

The purpose of this communication (this “Confirmation”) is to confirm the terms and conditions of the transaction entered into between Wells Fargo Bank, National Association (“Wells Fargo”) and The Cheesecake Factory Incorporated (“Counterparty”) on the Trade Date specified below (the “Transaction”).  This Confirmation constitutes a “Confirmation” as referred to in the Agreement specified below.

 

This Confirmation is subject to, and incorporates, the definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc. (“ISDA”).  In the event of any inconsistency between the Equity Definitions and this Confirmation, this Confirmation will prevail.

 

1.             This Confirmation evidences a complete and binding agreement between Wells Fargo and Counterparty as to the terms of the Transaction to which this Confirmation relates.  This Confirmation shall supplement, form a part of, and be subject to an agreement in the form of the 2002 ISDA Master Agreement (the “Agreement”) as if Wells Fargo and Counterparty had executed an agreement in such form (but without any Schedule except for the election of (i) the law (and not the law of conflicts) of the State of New York as the governing law and (ii) United States dollars as the Termination Currency) on the Trade Date.  In the event of any inconsistency between provisions of the Agreement and this Confirmation, this Confirmation will prevail for the purpose of the Transaction to which this Confirmation relates.  The parties hereby agree that no Transaction other than the Transaction to which this Confirmation relates shall be governed by the Agreement.  This Transaction is a Share Forward Transaction within the meaning set forth in the Equity Definitions.

 

2.             The terms of the particular Transaction to which this Confirmation relates are as follows:

 

General Terms:

 

	
Trade Date: 
    	
February 27, 2015
    
	
 
    	
 
    
	
Seller:
    	
Wells   Fargo
    
	
 
    	
 
    
	
Buyer:
    	
Counterparty
    
	
 
    	
 
    
	
Shares:
    	
The common stock of Counterparty (the “Issuer”), par value USD 0.01 per share (ticker symbol: “CAKE”)
    
	
 
    	
 
    
	
Variable Obligation:
    	
Applicable
    
	
 
    	
 
    
	
Forward Floor Price:
    	
As   specified in Appendix A. 
    
	
 
    	
 
    
	
Forward Cap Price:
    	
As   specified in Appendix A. 
    

 

 

	
Initial Price:
    	
As   specified in Appendix A. 
    
	
 
    	
 
    
	
VWAP Price:
    	
For any Averaging Date, the 10b-18   volume-weighted average price per Share at which the Shares trade for the   regular trading session (including any extensions thereof) of the Exchange on   such Averaging Date (without regard to pre-open or after hours trading   outside of such regular trading session), as reported by Bloomberg at 4:15 p.m.   New York City time (or 15 minutes following the end of any extension of the   regular trading session) on such Averaging Date, on Bloomberg Page “CAKE<Equity>   AQR_SEC” (or any successor thereto).    If such price is not reported on such Averaging Date for any reason or   is, in the Calculation Agent’s good faith and commercially reasonable   discretion, erroneous, such VWAP Price shall be determined by the Calculation   Agent in good faith and in a commercially reasonable manner.
    
	
 
    	
 
    
	
Exchange:
    	
Nasdaq   Global Select Market
    
	
 
    	
 
    
	
Related Exchange(s):
    	
All Exchanges
    
	
 
    	
 
    
	
Prepayment:
    	
Applicable
    
	
 
    	
 
    
	
Prepayment Date:
    	
One Currency Business Day after the Trade   Date.
    
	
 
    	
 
    
	
Prepayment Amount:
    	
As   specified in Appendix A.
    
	
 
    	
 
    
	
Initial Shares:
    	
As specified in Appendix A.
    
	
 
    	
 
    
	
Initial Share Delivery   Date:
    	
The Prepayment Date. On the   Initial Share Delivery Date, Seller shall deliver a number of Shares equal to   the Initial Shares to Buyer in accordance with Section 9.4 of the Equity   Definitions, with the Initial Share Delivery Date deemed to be a “Settlement   Date” for purposes of such Section 9.4.
    
	
 
    	
 
    
	
Minimum Share Delivery:
    	
Seller   shall deliver a number of Shares equal to the excess, if any, of the Minimum   Shares over the Initial Shares on the Minimum Share Delivery Date in   accordance with Section 9.4 of the Equity Definitions, with the Minimum   Share Delivery Date deemed to be a “Settlement Date” for purposes of such Section 9.4.
    
	
 
    	
 
    
	
Minimum Share Delivery Date:
    	
The   date one Currency Business Day immediately following the Initial Period End   Date.
    
	
 
    	
 
    
	
Minimum Shares:
    	
As   specified in Appendix A.
    
	
 
    	
 
    
	
Maximum Shares:
    	
As   specified in Appendix A.
    

 

Valuation Terms:

 

	
Initial Period Averaging   Dates:
    	
Each of the consecutive Exchange Business   Days commencing on March 4, 2015 and ending on, and including, the   Initial Period End Date. If, at any time during the Initial Period   Averaging Dates, the arithmetic average of the VWAP Prices for each Initial   Period Averaging Date equals or exceeds the Hedging Threshold Price,   (i) Wells Fargo shall have the right to accelerate the Initial Period   End Date as of such time and (ii) the Calculation Agent may make adjustments   to the Forward Cap Price, the Forward Floor Price and any other variable or   term relevant to the terms of the Transaction and, for the purposes of   calculating the Number of Shares to be Delivered, shall adjust the Prepayment   Amount to preserve the fair value of the Transaction to Wells Fargo and   ensure that Wells Fargo’s, or its affiliate’s, initial theoretical delta for   the Transaction is equal to the number of Shares purchased by Wells Fargo or   such affiliate during the Initial Period Averaging Dates for the Transaction   at the time of such termination.
    

 

2

 

	
 
    	
Hedging   Threshold Price:  The price per Share   equal to the quotient of (A) the Prepayment Amount divided by (B) the product of the   percentage contained in the definition of the Forward Cap Price and the   Initial Shares.
    
	
 
    	
 
    
	
Initial Period End Date:
    	
The Exchange Business Day on which Seller   completes its initial hedge for the transaction.  On the Initial Period End Date, Seller   shall deliver to Buyer the Hedge Completion Notice.
    
	
 
    	
 
    
	
Valuation Date:
    	
As specified in Appendix A.
    
	
 
    	
 
    
	
Averaging:
    	
Applicable
    
	
 
    	
 
    
	
Averaging Dates:
    	
As specified in Appendix A.
    
	
 
    	
 
    
	
Averaging Period:
    	
All Averaging Dates.
    
	
 
    	
 
    
	
Settlement Price:
    	
For the Valuation Date, the arithmetic average   of the VWAP Price on each Averaging Date for such Valuation Date minus Price Adjustment.
    
	
 
    	
 
    
	
Price Adjustment:
    	
As specified in Appendix A.
    
	
 
    	
 
    
	
Valuation Disruption:  
    	
The definition of “Market Disruption Event”   in Section 6.3(a) of the Equity Definitions is hereby amended by   replacing the words “at any time during the one-hour period that ends at the   relevant Valuation Time, Latest Exercise Time, Knock-in Valuation Time or   Knock-out Valuation Time, as the case may be” with “at any time on any   Scheduled Trading Day during the Averaging Period” in the third line thereof.

 

Section 6.3(d) of the Equity   Definitions is hereby amended by deleting the remainder of the provision   following the term “Scheduled Closing Time” in the fourth line thereof.

 

Notwithstanding anything to the contrary in   the Equity Definitions, if any Averaging Date in the Averaging Period is a   Disrupted Day, the Calculation Agent shall have the option in its   commercially reasonable discretion either (i) to elect to extend the   Averaging Period by a number of Scheduled Trading Days equal to the number of   Disrupted Days during the Averaging Period and/or (ii) determine that   such Averaging Date is a Disrupted Day only in part, in which case the   Calculation Agent shall (x) determine the VWAP Price for such Disrupted   Day based on Rule 10b-18 eligible transactions in the Shares on such   Disrupted Day taking into account the nature and duration of such Market   Disruption Event and (y) determine the Settlement Price based on an   appropriately weighted average instead of the arithmetic average described   under “Settlement Price” below, with such adjustments based on, among other   factors, the duration of any Market Disruption Event and the volume,   historical trading patterns and price of the Shares and/or (iii) to   suspend the Averaging Period, as appropriate, until the circumstances giving   rise to such suspension have ceased. Any day on which the Exchange is   scheduled to close prior to its normal closing time shall be considered a   Disrupted Day in whole.  
    

 

3

 

	
Additional Market   Disruption Events:
    	
If Seller determines, in its good faith and   commercially reasonable discretion, on any Scheduled Trading Day during any   Averaging Period or on any Initial Period Averaging Dates that (i) its   or its affiliates’ market activities in connection with the Transaction may   raise legal, regulatory or self-regulatory risks for Seller (whether or not   under related policies or procedures and whether or not such legal, regulatory   or self-regulatory requirements, policies or procedures are imposed by law or   have been voluntarily adopted by Seller) or (ii) a Hedging Disruption   (as defined in Section 12.9(a)(v) of the Equity Definitions) has   occurred, in each case, Seller shall notify Buyer and a Market Disruption   Event shall be deemed to have occurred.    In the event of a Hedging Disruption,   Section 12.9(b)(iii) of the Equity Definitions shall not apply.

 

If on any Averaging Date or Initial Period   Averaging Date (i) the trading volume or liquidity of trading in the   Shares is materially reduced from levels prevailing on the Trade Date,   (ii) the Calculation Agent determines in its commercially reasonable   discretion that such reduction has had a materially adverse effect on   Seller’s ability to effect a commercially reasonable hedge of  its obligations under this Transaction and   (iii) the Calculation Agent determines in its commercially reasonable   discretion that as a result it would be appropriate to treat such Averaging   Date as a Disrupted Day, then Seller shall notify Buyer and a Market   Disruption Event shall be deemed to have occurred.
    
	
 
    	
 
    
	
Settlement   Terms:
    	
 
    
	
 
    	
 
    
	
Settlement Currency:
    	
USD
    
	
 
    	
 
    
	
Settlement Method:
    	
Physical Settlement; provided that   Seller shall not make the representations set forth in Section 9.11 of   the Equity Definitions related to restrictions imposed by applicable   securities laws.
    
	
 
    	
 
    
	
Settlement Method   Election:
    	
Not   Applicable.
    
	
 
    	
 
    
	
Settlement Date:
    	
One Clearance System Business Day following   the Valuation Date.
    
	
 
    	
 
    
	
Number of Shares to be   Delivered:
    	
(i) if the Settlement Price is less than   the Forward Floor Price, a number of Shares equal to the Prepayment Amount divided   by the Forward Floor Price;
    

 

4

 

	
 
    	
(ii) if the Settlement Price is greater   than or equal to the Forward Floor Price but less than the Forward Cap Price,   a number of Shares equal to the Prepayment Amount divided by the   Settlement Price;

 

(iii) if the Settlement Price is greater   than or equal to the Forward Cap Price, a number of Shares equal to the   Prepayment Amount divided by the Forward Cap Price.
    
	
 
    	
 
    
	
Delivery on Settlement   Date:
    	
Seller’s obligation to deliver Shares   pursuant to Section 9.2(a)(iii) of the Equity Definitions shall be   reduced by a number of Shares equal to the Initial Shares and any Shares   delivered pursuant to the Minimum Share Delivery described above.
    
	
 
    	
 
    
	
Share   Adjustments:
    	
 
    
	
 
    	
 
    
	
Potential Adjustment   Event:
    	
It   shall constitute an additional Potential Adjustment Event if a Market   Disruption Event has been deemed to have occurred or if Seller otherwise   suspends trading in the Shares for all or any portion of a Scheduled Trading   Day within the Averaging Period or on any Initial Period Averaging Date, in   which case the Calculation Agent may, in its commercially reasonable   discretion, adjust any relevant terms of the Transaction as appropriate to   account for the economic effect on the Transaction of such Market Disruption   Event.
    
	
 
    	
 
    
	
Method of Adjustment:
    	
Calculation Agent Adjustment
    
	
 
    	
 
    
	
Excess Dividends:
    	
For any fiscal quarter, any dividend or   distribution on the Shares with an ex-dividend date occurring during such   fiscal quarter (other than any dividend or distribution of the type described   in Section 11.2(e)(i) or Section 11.2(e)(ii)(A) of the   Equity Definitions) (a “Dividend”)   the amount or value of which (as determined by the Calculation Agent), when   aggregated with the amount or value of any and all previous Dividends with   ex-dividend dates occurring in the same fiscal quarter, exceeds the Ordinary Dividend Amount. For the avoidance of   doubt, the Calculation Agent shall not make any adjustment for an Ordinary   Dividend Amount. “Extraordinary Dividend” means the per Share cash   dividend or distribution, or a portion thereof, declared by Counterparty on   the Shares that is classified by the board of directors of Counterparty as an   “extraordinary” dividend.  For the avoidance of doubt, an Extraordinary   Dividend shall not be deemed to be an Excess Dividend.
    
	
 
    	
 
    
	
Ordinary Dividend Amount:
    	
As specified in Appendix A
    
	
 
    	
 
    
	
Early Ordinary Dividend Payment:    
    	
If   an ex-dividend date for any Dividend that is not (x) an Excess Dividend,   (y) a dividend or distribution of the type described in   Section 11.2(e)(i) or Section 11.2(e)(ii)(A) of the   Equity Definitions and (z) an Extraordinary Dividend, occurs during any   fiscal quarter (in whole or in part) during the Relevant Dividend Period and   is prior to the Expected Ex-Dividend Date for the relevant fiscal quarter (as   determined by the Calculation Agent), the Calculation Agent shall make such   adjustment to the exercise, settlement, payment or any other terms of the   Transaction as the Calculation Agent determines appropriate to account for   the economic effect on the Transaction of such event.
    

 

5

 

	
Expected Ex-Dividend   Dates: 
    	
As specified in Appendix A
    
	
 
    	
 
    
	
Relevant Dividend Period:
    	
The   period from and including the Trade Date to and including the Relevant   Dividend Period End Date.
    
	
 
    	
 
    
	
Relevant Dividend Period End Date:
    	
The   Termination Date.
    
	
 
    	
 
    
	
Extraordinary Events:
    	
Upon (x) the occurrence or effective   designation of an Early Termination Date in respect of the Transaction or   (y) the occurrence of an Extraordinary Event that results in the cancellation   or termination of the Transaction pursuant to Section 12.2, 12.3, 12.6   or 12.9 of the Equity Definitions (any such event as described in clause   (x) or (y) above, an “Early   Termination Event”) (except, in the case of clause (y), an   Extraordinary Event that is a Nationalization, Insolvency, a Merger   Event or a Tender Offer, in each case, in which the consideration or proceeds   to be paid to holders of Shares consists solely of cash), if one party would   owe any amount to the other party pursuant to Section 6(d)(ii) of   the Agreement or any Cancellation Amount pursuant to Section 12.2, 12.3,   12.6, 12.7, 12.8 or 12.9 of the Equity Definitions (any such amount, a “Payment Amount”), then on the date on   which any Payment Amount is due, in lieu of any payment or delivery of such   Payment Amount, Counterparty may elect, by prior written notice to Wells   Fargo as provided in the succeeding paragraph, that the party owing such   amount shall deliver to the other party a number of Shares (or, in the case   of a Merger Event, Tender Offer, Nationalization or Insolvency, a number of   units, each comprising the number or amount of the securities or property   that a hypothetical holder of one Share would receive in such Extraordinary   Event (each such unit, an “Alternative Termination   Delivery Unit” and, the securities or property comprising such   unit, “Alternative Termination Property”))   with a value equal to the Payment Amount, as determined in a commercially   reasonable manner by the Calculation Agent (and the parties agree that, in   making such determination of value, the Calculation Agent may take into   account a number of factors, including the market price of the Shares or   Alternative Termination Property as of the Early Termination Date or the date   as of which the Cancellation Amount is determined and, if such delivery is   made by Wells Fargo, the prices at which Wells Fargo purchases Shares or   Alternative Termination Property to fulfil its delivery obligations, to the   extent doing so provides a commercially reasonable result) over a number of   Scheduled Trading Days selected by Calculation Agent in good faith and in its   commercially reasonable discretion based on the number of Scheduled Trading   Days that would be appropriate to unwind a commercially reasonable hedge   position;  provided that in determining the composition of any   Alternative Termination Delivery Unit, if the relevant Extraordinary Event   involves a choice of consideration to be received by holders, such holder   shall be deemed to have elected to receive the maximum possible amount of   cash.
    

 

6

 

	
 
    	
If Counterparty elects for Wells Fargo to   settle any Payment Amount owed by Wells Fargo to it in Shares or Alternative   Termination Property, then on the date such Payment Amount is due, a   settlement balance (the “Settlement Balance”)   shall be established with an initial balance equal to the Payment Amount. On   such date, Wells Fargo shall commence purchasing Shares or Alternative   Termination Property over a commercially reasonable period for delivery to   Counterparty and in a commercially reasonable manner to unwind a commercially   reasonable hedge position.  At the end   of each Scheduled Trading Day on which Wells Fargo purchases Shares or Alternative   Termination Property pursuant to this paragraph, Wells Fargo shall reduce the   Settlement Balance by the amount paid by Wells Fargo to purchase the   Shares  or Alternative Termination   Property purchased on such Scheduled Trading Day. Wells Fargo shall deliver   any Shares or Alternative Termination Property purchased on a Scheduled   Trading Day to Counterparty on the third Clearance System Business Day   following the relevant Scheduled Trading Day.    Wells Fargo shall continue purchasing Shares or Alternative   Termination Property over a commercially reasonable period until the   Settlement Balance has been reduced to zero. If delivery of Shares or   Alternative Termination Property is to be made by Wells Fargo pursuant to   this paragraph, the period during which Wells Fargo purchases Shares or Alternative   Termination Property to fulfill its delivery obligations under this paragraph   shall be referred to as the “Seller   Termination Purchase Period.”

 

If Counterparty elects to settle any Payment   Amount owed to Wells Fargo in Shares or Alternative Termination Property it   must do so in adherence to Section 12 of this Confirmation and in a   manner such that the value received by Wells Fargo (net of all commercially   reasonable fees, expenses or discounts to compensate for any discount from   the public market price of the Shares incurred on the sale of such Shares in   a private placement) is not less than the Payment Amount. For the avoidance   of doubt, notwithstanding anything to the contrary in the Definitions or this   Confirmation, the Payment Amount will not reflect the value associated with   any Excess Dividend or Extraordinary Dividend declared or paid by   Counterparty to holders of record of any Shares as of any date occurring on   or after the Trade Date and prior to the date on which the Payment Amount is   received.
    

 

7

 

	
Announcement Date:
    	
The   definition of “Announcement Date” in Section 12.1(l) of the Equity   Definitions shall be amended by (i) replacing the   words “a firm” with the word “any” in the second and fourth lines thereof, (ii) replacing the word “leads to the” in the   third and the fifth lines thereof with the words “, if completed, would lead   to a”, (iii) replacing the words “voting shares” in the fifth line   thereof with the word “Shares”, (iv) inserting the words “by any entity”   after the word “announcement” in the second and the fourth lines thereof,   (v) inserting the words “or to explore the possibility of engaging in”   after the words “engage in” in the second line thereof, (vi) inserting   the words “or to explore the possibility of purchasing or otherwise   obtaining” after the word “obtain” in the fourth line thereto,   (vii) deleting the parenthetical in the fifth line thereof and   (viii) adding immediately after the words “Tender Offer” in the fifth   line thereof “, and any publicly announced change or amendment to such an   announcement (including the announcement of an abandonment of such   intention)”. Sections 12.3(a) and 12.3(d) of the Equity Definitions   shall each be amended by replacing each occurrence of the words “Tender Offer   Date” with “Announcement Date.”

 

For purposes of this Transaction, the   definition of “Merger Date” in Section 12.1(c) of the Equity   Definitions shall be amended to read, “Merger Date shall mean the   Announcement Date.” For purposes of this Transaction, the definition of   “Tender Offer Date” in Section 12.1(e) Equity Definitions shall be   amended to read, “Tender Offer Date shall mean the Announcement Date.”
    
	
 
    	
 
    
	
Consequences of Merger Events:
    	
 
    
	
 
    	
 
    
	
Share-for-Share:
    	
Modified   Calculation Agent Adjustment
    
	
 
    	
 
    
	
Share-for-Other:
    	
Cancellation and Payment (Calculation Agent   Determination)
    
	
 
    	
 
    
	
Share-for Combined:
    	
Component Adjustment 
    
	
 
    	
 
    
	
New Shares:
    	
In the definition of “New Shares” in   Section 12.1(i) of the Equity Definitions, the text in clause (i) thereof   shall be deleted in its entirety and replaced with “publicly quoted, traded   or listed on any of the New York Stock Exchange, The NASDAQ Global Select   Market or The NASDAQ Global Market (or their respective successors).”
    
	
 
    	
 
    
	
Tender Offer:
    	
Applicable
    
	
 
    	
 
    
	
Consequences of Tender Offers:
    	
 
    
	
 
    	
 
    
	
Share-for-Share:
    	
Modified Calculation Agent Adjustment or   Cancellation and Payment Calculation Agent Determination, at the commercially reasonable election of Wells   Fargo.
    
	
 
    	
 
    
	
Share-for-Other:
    	
Modified Calculation Agent Adjustment or   Cancellation and Payment Calculation Agent Determination, at the commercially reasonable election of Wells   Fargo.
    

 

8

 

	
Share-for-Combined:
    	
Modified Calculation Agent Adjustment or   Cancellation and Payment Calculation Agent Determination, at the commercially reasonable election of Wells   Fargo.
    
	
 
    	
 
    
	
Determining Party:
    	
Wells Fargo
    
	
 
    	
 
    
	
Composition of Combined   Consideration:
    	
Not Applicable; provided that   notwithstanding Sections 12.1(f) and 12.5(b) of the Equity   Definitions, to the extent that the composition of the consideration for the   relevant Shares in connection with a Merger Event or Tender Offer could be   determined by a holder of the Shares, the Calculation Agent shall, in its   sole discretion, determine the composition of such consideration for purposes   of determining the consequences of such Merger Event or Tender Offer under   the Transaction. 
    
	
 
    	
 
    
	
Nationalization, Insolvency   or Delisting:
    	
Cancellation and Payment (Calculation Agent   Determination)

 

In addition to the provisions of   Section 12.6(a)(iii) of the Equity Definitions, it shall also   constitute a Delisting if the Exchange is located in the United States and   the Shares are not immediately re-listed, re-traded or re-quoted on any of the   New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global   Market (or their respective successors); if the Shares are immediately   re-listed, re-traded or re-quoted on any such exchange or quotation system,   such exchange or quotation system shall thereafter be the Exchange.
    
	
 
    	
 
    
	
Additional   Disruption Events:
    	
 
    
	
 
    	
 
    
	
Change   in Law:
    	
Applicable;   provided that   Section 12.9(a)(ii) of the Equity Definitions is hereby amended by   (i) replacing the phrase “the interpretation” in the third line thereof   with the phrase “, or public announcement of, the formal or informal   interpretation”, (ii) by replacing the word “Shares” where it appears in   clause (X) thereof with the words “Shares or Hedge Positions” and (iii) by immediately following the word   “Transaction” in clause (X) thereof, adding the phrase “in the manner   contemplated by the Hedging Party on the Trade Date”; provided further that   Section 12.9(a)(ii) of the Equity Definitions is hereby amended by   replacing the parenthetical beginning after the word “regulation” in the   second line thereof the words “(including, for the avoidance of doubt and   without limitation, (x) any tax law or (y) adoption or promulgation   of new regulations authorized or mandated by existing statute)”.
    
	
 
    	
 
    
	
Failure   to Deliver:
    	
Applicable
    
	
 
    	
 
    
	
Insolvency   Filing:
    	
Applicable
    

 

9

 

	
Hedging Disruption:

 

Hedging Party:

 

Increased Cost of Hedging:

 

Hedging Party:

 

Loss of Stock Borrow:

 

Maximum Stock Loan Rate:

 

Hedging Party:

 

Increased Cost of Stock Borrow:

 

Initial Stock Loan Rate:

 

Hedging Party:
    	
Applicable

 

Wells   Fargo

 

Applicable

 

Wells   Fargo

 

Applicable

 

200   basis points per annum

 

Wells   Fargo

 

Applicable

 

25   basis points per annum

 

Wells   Fargo
    
	
 
    	
 
    
	
Determining Party for all Extraordinary Events:
    	
Wells   Fargo
    
	
 
    	
 
    
	
Miscellaneous:
    	
 
    
	
 
    	
 
    
	
Non-Reliance:
    	
Applicable
    
	
 
    	
 
    
	
Agreements and Acknowledgments Regarding Hedging Activities:
    	
Applicable
    
	
 
    	
 
    
	
Additional Acknowledgments:
    	
Applicable
    
	
 
    	
 
    
	
3.     Calculation Agent:
    	
Wells   Fargo
    
	
 
    	
 
    
	
4.     Account Details:
    	
 
    
	
 
    	
 
    
	
Wells Fargo’s USD payment instructions:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Wells Fargo’s delivery instructions:
    	
 
    	
 
    
	
 
    	
 
    
	
Counterparty’s payment and delivery instructions:
    	
To   be advised.
    

 

10

 

5.                                      Offices:

 

(a)         The Office of Wells Fargo for the Transaction is:

 

Wells Fargo Bank, National Association

375 Park Avenue

New York, NY 10152

 

For notices with respect to the Transaction:

 

Notwithstanding anything to the contrary in the Agreement, all notices to Wells Fargo in connection with the Transaction are effective only upon receipt of email message to CorporateDerivativeNotifications@wellsfargo.com

 

(b)         The Office of Counterparty for the Transaction is:  None

 

For notices with respect to the Transaction:

 

The Cheesecake Factory Incorporated

26901 Malibu Hills Road

Calabasas Hills, California  91301

Attention: Matt Clark, Senior Vice President, Strategy & Finance

Facsimile: (866) 788-8849

 

With a copy to:

 

The Cheesecake Factory Incorporated

26901 Malibu Hills Road

Calabasas Hills, California  91301

Attention: Debby Zurzolo, General Counsel

Facsimile: (818) 871-3110

 

6.                                      Additional Provisions.

 

(a)                                 Buyer Representations and Agreements.  Buyer represents and warrants to, and agrees with, Seller as follows:

 

(i)                                     Public Reports.  As of the Trade Date, Buyer is in compliance with its reporting obligations under the Exchange Act of 1934, as amended (the “Exchange Act”), and all reports and other documents filed by Buyer with the Securities and Exchange Commission (“SEC”) pursuant to the Exchange Act, when considered as a whole (with the most recent such reports and documents deemed to amend inconsistent statements contained in any earlier such reports and documents), do not contain any untrue statement of a material fact or any omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading.  Without limiting the generality of the foregoing, as of the Trade Date, Buyer and its officers and directors are not aware of any material non-public information regarding Buyer or the Shares.

 

(ii)                                  Regulation M.  Buyer is not on the Trade Date engaged in a “distribution,” as such term is used in Regulation M, that would preclude purchases by Buyer of Shares.  In the event that Buyer reasonably concludes that it or any of its affiliates or agents will take any action that would cause Regulation M to be applicable to any purchases of Shares, or any security for which the Shares is a “reference security” (as defined in Regulation M), by Buyer or any of its “affiliated purchasers” (as defined in Regulation M) on any day prior to the second Scheduled Trading Day immediately following the later of the Valuation Date and the last day of the Seller Termination Purchase Period, as applicable, Buyer shall provide Seller at least five Scheduled Trading Days’ written notice of such fact prior to the beginning of the restricted period applicable to such distribution under Regulation M.  Buyer acknowledges that any such action could cause the occurrence of an Additional Market Disruption Event (and, accordingly, a Potential Adjustment Event).  Accordingly, Buyer acknowledges that its actions in relation to any such notice must comply with the standards set forth in Section 6(b)(iii) below.

 

11

 

(iii)                               No Manipulation.  Buyer is not entering into the Transaction to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for the Shares) or otherwise in violation of the Exchange Act and will not engage in any other securities or derivative transaction to such ends.

 

(iv)                              No Distribution.  Buyer is not entering into the Transaction to facilitate a distribution of the Shares (or any security that may be converted into or exercised or exchanged for Shares, or whose value under its terms may in whole or in significant part be determined by the value of the Shares) or in connection with any future issuance of securities.

 

(v)                                 Solvency.  As of the Trade Date, the Initial  Share Delivery Date, the Prepayment Date, the Minimum Share Delivery Date and each Settlement Date, (a) the aggregate fair market value of Buyer’s assets will exceed its liabilities (including contingent, subordinated, unmatured and unliquidated liabilities), (b) it has not engaged in and will not engage in any business or transaction after which the property remaining with it will be unreasonably small in relation to its business, (c) it has not incurred and does not intend to incur debts beyond its ability to pay as they mature, and (d) as a result of entering into and performing its obligations under the Transaction, (x) it has not violated and will not violate any relevant state law provision applicable to the acquisition or redemption by an issuer of its own securities and (y) it would not be nor would it be rendered “insolvent” (as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)).

 

(vi)                              Eligible Contract Participant.  It is an “eligible contract participant,” as defined under the Commodity Exchange Act (7 U.S.C. § 1a(18)) and CFTC regulations (17 CFR § 1.3) because it is a corporation, partnership, organization, trust, or other entity (other than a commodity pool or a proprietorship) that has total assets exceeding $10,000,000.

 

(vii)                           Tender Offers.  The purchase or writing of the Transaction by Buyer will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act.

 

(viii)                        Investment Company.  Buyer is not, and after giving effect to the transactions contemplated hereby will not be, required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.

 

(ix)                              Accounting Treatment.  Without limiting the generality of Section 13.1 of the Equity Definitions, Buyer acknowledges that Seller is not making any representations or warranties with respect to the treatment of the Transaction under any accounting standards including FASB Statements 128, 133, 149 (each as amended), or 150, EITF Issue No. 00-19, 01-6, 03-6 or 07-5 (or any successor issue statements) or under FASB’s Liabilities & Equity Project.

 

(x)                                 Authorization and Disclosure.  Upon Seller’s request, Buyer shall deliver to Seller a resolution of Buyer’s board of directors authorizing the Transaction and such other certificate or certificates as Seller shall reasonably request.  Buyer has publicly disclosed on Agreement execution date its intention to institute a program for the acquisition of Shares.

 

(xi)                              Buyer’s Actions.  Buyer will not take any action or refrain from taking any action that would limit or in any way adversely affect Seller’s rights under the Agreement or this Confirmation.

 

(xii)                           Rule 10b-18 purchases.  Buyer represents and warrants to Seller that neither it nor any “affiliated purchaser” (as defined in Rule 10b-18 under the Exchange Act) has made any purchases of blocks pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act during either (i) the four full calendar weeks immediately preceding the Trade Date or (ii) during the calendar week in which the Trade Date occurs.

 

12

 

(b)                                Rule 10b5-1.

 

(i)                                     Buyer intends the Transaction to comply with the requirements of Rule 10b5-1(c) under the Exchange Act.  Buyer represents that it is entering into the Transaction in good faith and not as part of a plan or scheme to evade the antifraud or anti-manipulation provisions of the federal or applicable state securities laws and that it has not entered into or altered any hedging transaction relating to the Shares corresponding to or offsetting the Transaction.  Buyer represents and warrants that it has consulted with its own advisors as to the legal aspects of its adoption and implementation of the Transaction under Rule 10b5-1 under the Exchange Act.

 

(ii)                                 Buyer shall not, at any time during the Averaging Period, the Seller Termination Purchase Period or on any Initial Period Averaging Dates  communicate, directly or indirectly, any material nonpublic information concerning itself or the Shares or purchases or sales of Shares by Seller (or its agent or affiliate) to any Relevant Bank Personnel.  “Relevant Bank Personnel” means any employees or agents of Seller or any affiliate of Seller that Seller has notified Buyer in writing are “Relevant Bank Personnel” ; provided that Wells Fargo may amend the list of Relevant Bank Personnel at any time by delivering a revised list to Counterparty.  “Relevant Bank Personnel” shall initially mean any personnel of the equity derivatives trading group of Seller or its affiliates who are responsible for, or have the ability to influence, the execution of this Transaction and of Wells Fargo’s hedge in relation thereto.

 

(iii)                              Buyer agrees that Buyer shall not enter into or alter any hedging transaction relating to the Shares corresponding to or offsetting the Transaction.  Buyer also acknowledges and agrees that any amendment, modification, waiver or termination of this Confirmation must be effected in accordance with the requirements for the amendment or termination of a “plan” as defined in Rule 10b5-1(c) under the Exchange Act.  Without limiting the generality of the foregoing, any such amendment, modification, waiver or termination shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5, and no such amendment, modification, waiver or termination shall be made at any time at which Buyer or any officer, director, manager or similar person of Buyer is aware of any material non-public information regarding Buyer or the Shares.

 

(iv)                               Buyer acknowledges and agrees that it does not have, and shall not attempt to exercise, any influence over how, when or whether Seller effects any purchases of Shares in connection with the Transaction.

 

(c)                                  U.S. Private Placement and Other Representations.

 

Each party acknowledges that the offer and sale of the Transaction to it is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, each party hereby represents and warrants to the other party as of the date hereof that:

 

(i)                                     It is an “accredited investor” (as defined in Regulation D under the Securities Act) and has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the Transaction, and it is able to bear the economic risk of the Transaction.

 

(ii)                                   It is entering into the Transaction for its own account and not with a view to the distribution or resale of the Transaction or its rights thereunder except pursuant to a registration statement declared effective under, or an exemption from the registration requirements of, the Securities Act.

 

(iii)                                It is duly organized and validly existing under the laws of the jurisdiction of its organization or incorporation and, if relevant under such laws, in good standing.

 

(iv)                               It has the power to execute this Confirmation and any other documentation relating to this Confirmation to which it is a party, to deliver this Confirmation and any other documentation relating to this Confirmation that it is required by this Confirmation to deliver and to perform its obligations under this Confirmation and has taken all necessary action to authorize such execution, delivery and performance.

 

(v)                                  Such execution, delivery and performance do not violate or conflict with any law applicable to it, any provision of its constitutional documents, any order or judgment of any court or other agency of government applicable to it or any of its assets or any contractual restriction binding on or affecting it or any of its assets.

 

13

 

(d)                                Securities Contract; Swap Agreement.   The parties hereto agree and acknowledge that Seller is a “financial participant” within the meaning of Sections 101(22), 101(53C) and 101(22A) of the Bankruptcy Code. The parties hereto further agree and acknowledge that this Transaction is (i) a “securities contract” as such term is defined in Section 741(7) of the Bankruptcy Code, in which case each payment and delivery made pursuant to this Transaction is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “settlement payment,” within the meaning of Section 546 of the Bankruptcy Code and (ii) a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to which each payment and delivery hereunder or in connection herewith is a “termination value,” “payment amount” or “other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a “transfer,” as such term is defined in Section 101(54) of the Bankruptcy Code and a “payment or other transfer of property” within the meaning of Sections 362 and 546 of the Bankruptcy Code, and that Seller is entitled to the protections afforded by, among other sections, Sections 362(b)(6), 362(b)(17), 362(o), 546(e), 546(g), 548(d)(2), 555, 560 and 561 of the Bankruptcy Code.

 

(e)                                Bankruptcy Status.  Wells Fargo acknowledges and agrees that this Confirmation is not intended to convey to it rights with respect to the transactions contemplated hereby that are senior to the claims of Counterparty’s common stockholders in the event of Counterparty’s bankruptcy; provided, however, that nothing herein shall be deemed to limit Wells Fargo’s right to pursue remedies in the event of a breach by Counterparty of its obligations and agreements with respect to this Confirmation and the Agreement; and provided, further, that nothing herein shall limit or shall be deemed to limit Wells Fargo’s rights in respect of any transaction other than this Transaction.

 

(f)                                 No Collateral or Setoff.  Notwithstanding any provision of this Confirmation, the Agreement, or any other agreement between the parties to the contrary, the obligations of Counterparty under this Transaction are not secured by any collateral.  Wells Fargo agrees not to set off or net amounts due from Counterparty with respect to this Transaction against amounts due from Wells Fargo to Counterparty under obligations other than Equity Contracts.  “Equity Contract” means any transaction relating to Shares between the parties (or any of their affiliates) that qualifies as ‘equity’ under applicable accounting rules.

 

(g)                                 Additional Termination Event.  Notwithstanding any other provision hereof, an “Additional Termination Event” shall occur and Counterparty shall be the sole Affected Party pursuant to such Additional Termination Event if: [(i) at any time on or prior to the Valuation Date, the price per Share on the Exchange, as determined by the Calculation Agent, is at or below the Threshold Price as specified in Appendix A; or (ii)] (1)  Counterparty declares an Excess Dividend with an ex-dividend date which occurs or is scheduled to occur during the Relevant Dividend Period.  For the avoidance of doubt, such Excess Dividend shall not constitute a Potential Adjustment Event.

 

(h)                                Maximum Number of Shares.  Notwithstanding any provisions of this Confirmation, the Agreement or the Equity Definitions to the contrary, in no event shall the aggregate number of Shares that Counterparty shall be obligated to deliver in connection with this Transaction exceed [insert 2X the number of shares underlying the transaction] Shares, as such number may be proportionately adjusted by the Calculation Agent to reflect stock splits or similar events.

 

(1) Include for capped structures, delete for collared structures

 

14

 

(i)                                     Agreements to Deliver Documents.  Each of Buyer and Seller will deliver to the other party, upon execution of this Confirmation, evidence reasonably satisfactory to the other party as to the names, true signatures and authority of the officers or officials signing this Confirmation on its behalf.  Such documents shall be covered by the representation set forth in Section 3(d) of the Agreement.  In addition, Buyer agrees to complete (accurately and in a manner reasonably satisfactory to the other party), execute, and deliver to Seller, United States Internal Revenue Service Form W-8 or Form W-9, as applicable, or any successor of such form, (i) upon execution of this Confirmation, (ii) promptly upon reasonable demand by Seller, and (iii) promptly upon learning that any such form previously provided by it has become obsolete or incorrect.

 

(j)                                    [Reserved.]

 

(k)                                 Counterparty Purchases. Without the prior written consent of Wells Fargo, Counterparty shall not, and shall cause its “affiliates” and “affiliated purchasers” (each as defined in Rule 10b-18) not to, directly or indirectly (including, without limitation, by means of a derivative) purchase, offer to purchase, place any bid or limit order that would effect a purchase of, or commence any tender offer relating to, any Shares (or an equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a depository share) or any security convertible into or exchangeable for Shares during the Averaging Period, Seller Termination Purchase Period or on any Initial Period Averaging Date.  During such time, any purchases of Shares (or any security convertible into or exchangeable for Shares) by Counterparty shall be made through Wells Fargo Securities, LLC, which is an affiliate of Wells Fargo. Nothing in this section 6(k) shall (i) limit the Buyer’s ability, pursuant to its employee equity incentive plans, to re-acquire shares in connection with the related equity transactions, (ii) limit Buyer’s ability to withhold shares to cover tax liabilities associated with such equity transactions or (iii) limit Buyer’s ability to grant stock and options to “affiliated purchasers” (as defined in Rule 10b-18) or the ability of such affiliated purchasers to acquire such stock or options, in connection with the Buyer’s compensation policies for directors, officers and employees or any agreements with respect to the compensation of directors, officers or employees of any entities that are acquisition targets of Buyer.

 

(l)                                     Merger-related Transactions.  During the Averaging Period, Seller Termination Purchase Period or on any Initial Period Averaging Date, Counterparty shall (i) notify Wells Fargo prior to the opening of trading in the Shares on any day on which Counterparty makes, or expects to be made, any public announcement (as defined in Rule 165(f) under the Securities Act) of any merger, acquisition, or similar transaction involving a recapitalization relating to Counterparty (other than any such transaction in which the consideration consists solely of cash and there is no valuation period), (ii) promptly notify Wells Fargo following any such announcement that such announcement has been made, and (iii) promptly deliver to Wells Fargo following the making of any such announcement a certificate indicating (A) Counterparty’s average daily Rule 10b-18 purchases (as defined in Rule 10b-18) during the three full calendar months preceding the date of the announcement of such transaction and (B) Counterparty’s block purchases (as defined in Rule 10b-18) effected pursuant to paragraph (b)(4) of Rule 10b-18 during the three full calendar months preceding the date of the announcement of such transaction.  In addition, Counterparty shall promptly notify Wells Fargo of the earlier to occur of the completion of such transaction and the completion of the vote by target shareholders.  Counterparty acknowledges that any such public announcement may cause the terms of the Transaction to be adjusted or terminated. Accordingly, Counterparty acknowledges that its actions in relation to any such announcement or transaction must comply with the standards set forth in Section 6(b) above.  Wells Fargo in a commercially reasonable manner  may (i) make adjustments to the terms of the Transaction, including, without limitation, the Price Adjustment and/or suspend the Averaging  Period to preserve the economics of the transaction or (ii) treat the occurrence of such public announcement as an Additional Termination Event with Counterparty as the sole Affected Party and the Transaction hereunder as the Affected Transaction and with the amount under Section 6(e) of the Agreement determined taking into account the fact that the Averaging Period, as the case may be, had fewer Scheduled Trading Days than originally anticipated.

 

(m)                             Acknowledgments and Agreements Regarding Hedging.  Counterparty acknowledges and agrees that (i) during the Averaging Period and on any Initial Period Averaging Date, Wells Fargo and its affiliates may (x) buy or sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities in order to adjust its hedge position with respect to the Transaction and (y) be active in the market for Shares other than in connection with hedging activities in relation to the Transaction, (ii) Wells Fargo shall make its own determination as to whether, when or in what manner any hedging or market activities in Counterparty’s securities shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the Settlement Price and/or the VWAP Price and (iii) any market activities of Wells Fargo and its affiliates with respect to Shares may affect the market price and volatility of Shares, as well as the Settlement Price and/or the VWAP Price, each in a manner that may be adverse to Counterparty.

 

15

 

7.                                      Seller Adjustments.

 

In the event that Seller reasonably determines, in good faith and based on the advice of counsel,   that it is appropriate with regard to any legal, regulatory or self-regulatory requirements or related policies and procedures (whether or not such requirements, policies or procedures are imposed by law or have been voluntarily adopted by Seller, and including, without limitation, Rule 10b-18, Rule 10b-5, Regulation 13D-G and Regulation 14E, “Requirements”), to refrain from purchasing Shares or to purchase fewer than the number of Shares than would otherwise be expected to be purchased in a commercially reasonable manner on any Trading Day during the duration of this Transaction, then Seller may, in its commercially reasonable discretion, elect that Averaging Period be suspended and, if appropriate, extended with regard to any Requirements. Seller shall notify the Issuer upon the exercise of Seller’s rights pursuant to this Section 7 and shall subsequently notify the Issuer on the day Seller believes that the circumstances giving rise to such exercise have changed.  If the Averaging Period is suspended pursuant to this Section 7, at the end of such suspension Seller shall determine the number of Scheduled Trading Days remaining in the Averaging Period, as appropriate, and the terms of this Transaction shall be adjusted by the Calculation Agent.  All determinations by Seller shall be made in good faith and a commercially reasonable manner and assuming the Seller maintains a commercially reasonable hedge position.

 

8.                                      Special Provisions regarding Acquisition Transaction Announcements.

 

(a)                                 If an Acquisition Transaction Announcement occurs on or prior to the Settlement Date, then the Calculation Agent shall make such adjustments to the exercise, settlement, payment or any other terms of the Transaction (including, without limitation, the Minimum Number of Shares,  the Number of Shares to be Delivered and the Price Adjustment) as the Calculation Agent determines appropriate, at such time or at multiple times as the Calculation Agent determines appropriate, to account for the economic effect on such Transaction of such Acquisition Transaction Announcement (provided that adjustments will be made to account solely for changes in price, volatility, stock loan rate and liquidity relevant to the Shares, to the Transaction or to commercially reasonable hedge positions in respect of the Transaction).  If an Acquisition Transaction Announcement occurs after the Trade Date, but prior to the Scheduled Earliest Acceleration Date, the Scheduled Earliest Acceleration Date shall be the date of such Acquisition Transaction Announcement.

 

(b)                                 “Acquisition Transaction Announcement” means (i) the announcement of an Acquisition Transaction or an event that, if consummated, would result in an Acquisition Transaction, (ii) an announcement that Buyer or any of its subsidiaries has entered into an agreement, a letter of intent or an understanding designed to result in an Acquisition Transaction, (iii) the announcement of the intention to solicit or enter into, or to explore strategic alternatives or other similar undertaking that may include, an Acquisition Transaction, (iv) any other announcement that in the reasonable judgment of the Calculation Agent may result in an Acquisition Transaction or (v) any announcement of any change or amendment to any previous Acquisition Transaction Announcement (including any announcement of the abandonment of any such previously announced Acquisition Transaction, agreement, letter of intent, understanding or intention). For the avoidance of doubt, announcements as used in the definition of Acquisition Transaction Announcement refer to any public announcement whether made by the Buyer or a third party.

 

(c)                                  “Acquisition Transaction” means (i) any Merger Event (for purposes of this definition the definition of Merger Event shall be read with the references therein to “100%” being replaced by “15%” and to “50%” by “75%” and without reference to the clause beginning immediately following the definition of Reverse Merger therein to the end of such definition), Tender Offer or Merger Transaction or any other transaction involving the merger of Buyer with or into any third party, (ii) the sale or transfer of all or substantially all of the assets of Buyer, (iii) a recapitalization, reclassification, binding share exchange or other similar transaction with respect to Buyer, (iv) any acquisition by Counterparty or any of its subsidiaries where the aggregate consideration transferable by Counterparty or its subsidiaries exceeds 50% of the market capitalization of Counterparty, (v) any acquisition, lease, exchange, transfer, disposition (including by way of spin-off or distribution) of assets (including any capital stock or other ownership interests in subsidiaries) or other similar event by Buyer or any of its subsidiaries where the aggregate consideration transferable or receivable by or to Buyer or its subsidiaries exceeds 15% of the market capitalization of Buyer and (vi) any transaction in which Buyer or its board of directors has a legal obligation to make a recommendation to its shareholders in respect of such transaction (whether pursuant to Rule 14e-2 under the Exchange Act or otherwise).

 

16

 

9.                                      Staggered Settlement.

 

Notwithstanding anything to the contrary herein, Wells Fargo may, by prior notice to Counterparty, satisfy its obligation to deliver any Shares or other securities on any date due (an “Original Delivery Date”) by making separate deliveries of Shares or such securities, as the case may be, at more than one time on or prior to such Original Delivery Date, so long as the aggregate number of Shares and other securities so delivered on or prior to such Original Delivery Date is equal to the number required to be delivered on such Original Delivery Date.

 

10.                               Transfer and Assignment.

 

Notwithstanding anything to the contrary in the Agreement, Wells Fargo may assign, transfer and set over all its rights, title and interest, powers, privileges and remedies under any Transaction, in whole or in part, to an affiliate of Wells Fargo, without the consent of Counterparty.

 

At any time at which the Equity Percentage exceeds [7.5]% (an “Excess Ownership Position”) or a Hedging Disruption has occurred and is continuing, if Wells Fargo, in its discretion, is unable to effect a transfer or assignment to a third party after using its commercially reasonable efforts on pricing terms and within a time period reasonably acceptable to Wells Fargo such that an Excess Ownership Position or a Hedging Disruption, as the case may be, no longer exists, Wells Fargo may designate any Scheduled Trading Day as an Early Termination Date with respect to a portion (the “Terminated Portion”) of the Transaction, such that such Excess Ownership Position or Hedging Disruption, as the case may be, no longer exists. In the event that Wells Fargo so designates an Early Termination Date with respect to a portion of the Transaction, a payment or delivery shall be made pursuant to Section 6 of the Agreement and Section 2 of this Confirmation as if (i) an Early Termination Date had been designated in respect of a Transaction having terms identical to the Terminated Portion of the Transaction, (ii) Counterparty shall be the sole Affected Party with respect to such partial termination and (iii) such portion of the Transaction shall be the only Terminated Transaction. The “Equity Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of which is the number of Shares that Wells Fargo and any of its affiliates or any other person subject to aggregation with Wells Fargo, for purposes of the “beneficial ownership” test under Section 13 of the Exchange Act or any “group” (within the meaning of Section 13 of the Exchange Act) of which Wells Fargo is or may be deemed to be a part, beneficially owns (within the meaning of Section 13 of the Exchange Act) on such day and (B) the denominator of which is the number of Shares outstanding on such day.

 

11.                               Registration Provisions.

 

Counterparty hereby agrees that if, in the good faith and commercially reasonable judgment of Wells Fargo, any Shares acquired by Wells Fargo for the purpose of hedging its obligations pursuant to the Transaction or otherwise delivered by the Counterparty to Wells Fargo for any reason hereunder cannot be sold in the public market by Wells Fargo without registration under the Securities Act, Counterparty shall, at its election: (i) in order to allow Wells Fargo to sell such Shares in a registered offering, make available to Wells Fargo an effective registration statement under the Securities Act to cover the resale of such Shares and (A) enter into an agreement, in form and substance satisfactory to Wells Fargo, substantially in the form of an underwriting agreement for a registered offering of similar size, (B) provide accountant’s “comfort” letters in customary form for registered offerings of equity securities of similar size, (C) provide disclosure opinions of nationally recognized outside counsel to Counterparty reasonably acceptable to Wells Fargo, (D) provide other customary opinions, certificates and closing documents customary in form for registered offerings of equity securities of similar size and (E) afford Wells Fargo a reasonable opportunity to conduct a “due diligence” investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities of similar size; provided that if Wells Fargo, in its commercially reasonable discretion, is not satisfied with access to due diligence materials, the results of its due diligence investigation, or the procedures and documentation for the registered offering referred to above, then clause (ii) or clause (iii) of this Section 12 shall apply at the election of Counterparty; (ii) in order to allow Wells Fargo to sell such Shares in a private placement, enter into a private placement agreement substantially similar to private placement purchase agreements customary for private placements of equity securities of similar size, in form and substance satisfactory to Wells Fargo, including customary representations, covenants, blue sky and other governmental filings and/or registrations, indemnities to Wells Fargo, due diligence rights (for Wells Fargo or any designated buyer or buyers of the Shares from Wells Fargo), opinions and certificates and such other documentation as is customary for private placements agreements, all commercially reasonably acceptable to Wells Fargo (in which case, the Calculation Agent shall make any adjustments to the terms of the Transaction that are necessary, using commercially reasonable judgment, to compensate Wells Fargo for any discount from the public market price of the Shares incurred on the sale of such Shares in a private placement); or (iii) purchase the Shares from Wells Fargo at the Volume Weighted Average Price on such Exchange Business Days, and in the amounts, requested by Wells Fargo.  “Volume Weighted Average Price” means, on any Exchange Business Day, the per Share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page CAKE <equity> VAP (or any successor thereto) in respect of the period from 9:30 a.m. to 4:00 p.m. (New York City time) on such Exchange Business Day (or if such volume-weighted average price is unavailable, the market value of one Share on such Exchange Business Day, as determined by the Calculation Agent using a volume-weighted method).

 

17

 

12.                               Calculations and Payment Date upon Early Termination.

 

The parties acknowledge and agree that in calculating (a) the Close-Out Amount pursuant to Section 6 of the Agreement and (b) the amount due upon cancellation or termination of the Transaction (whether in whole or in part) pursuant to Article 12 of the Equity Definitions as a result of an Extraordinary Event, Wells Fargo may (but need not) determine such amount based on (i) expected losses assuming a commercially reasonable (including, without limitation, with regard to reasonable legal and regulatory guidelines) risk bid were used to determine loss or (ii) the price at which one or more market participants would offer to sell to the Seller a block of Shares equal in number to the Seller’s hedge position in relation to the Transaction.  Notwithstanding anything to the contrary in Section 6(d)(ii) of the Agreement or Article 12 of the Equity Definitions, all amounts calculated as being due in respect of an Early Termination Date under Section 6(e) of the Agreement or upon cancellation or termination of the Transaction under Article 12 of the Equity Definitions will be payable on the day that notice of the amount payable is effective.

 

13.                               Counterparts.

 

This Confirmation may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Confirmation by signing and delivering one or more counterparts.

 

14.                               Waiver of Trial by Jury.

 

EACH PARTY HEREBY IRREVOCABLY WAIVES (ON ITS OWN BEHALF AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS STOCKHOLDERS) ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE TRANSACTION OR THE ACTIONS OF WELLS FARGO, THE AGENT OR THEIR AFFILIATES IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF.

 

18

 

15.                               Adjustments.

 

For the avoidance of doubt, whenever the Seller, Calculation Agent, Wells Fargo or Determining Party are called upon to make an adjustment or determination pursuant to the terms of this Confirmation or the Definitions to take into account the effect of an event, the Seller, Calculation Agent and Determining shall make such adjustment or determination by reference to the effect of such event on the Hedging Party, assuming that the Hedging Party maintains a commercially reasonable Hedge Position at the time of the event.

 

16.                               Amendments to the Equity Definitions.

 

(a)                                 Section 11.2(a) of the Equity Definitions is hereby amended by deleting the words “a diluting or concentrative” and replacing them with the words “an”; and adding the phrase “or such Transaction” at the end of the sentence.

 

(b)                                 Section 11.2(c) of the Equity Definitions is hereby amended by (i) replacing the words “a diluting or concentrative” with “an” in the fifth line thereof, (ii) adding the phrase “or such Transaction” after the words “the relevant Shares” in the same sentence, (iii) deleting the words “dilutive or concentrative” in the sixth to last line thereof, and (iv) deleting the phrase “(provided that no adjustments will be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares)” and replacing it with the phrase “(and, for the avoidance of doubt, adjustments may be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares).”

 

(c)                                  Section 11.2(e)(vii) of the Equity Definitions is hereby amended by deleting the words “a diluting or concentrative” and replacing them with the word “a material”; and adding the phrase “or the relevant Transaction” at the end of the sentence.

 

(d)                                 Section 12.6(a)(ii) of the Equity Definitions is hereby amended by (i) deleting from the fourth line thereof the word “or” after the word “official” and inserting a comma therefor, and (ii) deleting the semi-colon at the end of subsection (B) thereof and inserting the following words therefor “or (C) at Wells Fargo’s option, the occurrence of any of the events specified in Section 5(a)(vii) (1) through (9) of the ISDA Master Agreement with respect to that Issuer.”

 

(e)                                  Section 12.9(b)(iv) of the Equity Definitions is hereby amended by:

 

(i)                                     deleting (1) subsection (A) in its entirety, (2) the phrase “or (B)” following subsection (A) and (3) the phrase “in each case” in subsection (B); and

 

(ii)                                  replacing the phrase “neither the Non-Hedging Party nor the Lending Party lends Shares” with the phrase “such Lending Party does not lend Shares” in the penultimate sentence.

 

(f)                                   Section 12.9(b)(v) of the Equity Definitions is hereby amended by:

 

(i)                                     adding the word “or” immediately before subsection “(B)” and deleting the comma at the end of subsection (A); and

 

(ii)                                  (1) deleting subsection (C) in its entirety, (2) deleting the word “or” immediately preceding subsection (C), (3) deleting the penultimate sentence in its entirety and replacing it with the sentence “The Hedging Party will determine the Cancellation Amount payable by one party to the other” and (4) deleting clause (X) in the final sentence.

 

19

 

Please confirm that the foregoing correctly sets forth the terms of our agreement by executing a copy of this Confirmation and returning it to CorporateDerivativeNotifications@wellsfargo.com.

 

 

	
WELLS FARGO BANK, NATIONAL ASSOCIATION
    	
 
    	
THE CHEESECAKE FACTORY INCORPORATED
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
Title:
    	
 
    

 

20

 

Appendix A

 

	
Forward   Floor Price:
    	
 
    	
As   specified in the Hedge Completion Notice, to be equal to []% of the Initial   Price.
    
	
 
    	
 
    	
 
    
	
Forward   Cap Price:
    	
 
    	
As   specified in the Hedge Completion Notice, to be equal to []% of the Initial   Price.
    
	
 
    	
 
    	
 
    
	
Initial   Price:
    	
 
    	
As   specified in the Hedge Completion Notice, to be equal to the volume weighted   average price of the Seller’s purchases to establish its initial hedge to the   Transaction on the Initial Period Averaging Dates.
    
	
 
    	
 
    	
 
    
	
Initial   Shares:
    	
 
    	
[   ] Shares; provided that if   Wells Fargo is unable to borrow or otherwise acquire a number of Shares equal   to the Initial Shares for delivery to Counterparty on the Initial Share   Delivery Date, the Initial Shares delivered on the Initial Share Delivery   Date shall be reduced to such number of Shares that Seller is able to so   borrow or otherwise acquire.
    
	
 
    	
 
    	
 
    
	
Minimum   Shares:
    	
 
    	
As specified in the Hedge Completion Notice,   to be an amount equal to the Prepayment Amount divided by the Forward Cap   Price multiplied by [       ]%; provided that if Wells Fargo is   unable to borrow or otherwise acquire a number of Shares equal to Minimum   Shares for delivery to Counterparty on the Minimum Share Delivery Date, the   Minimum Shares delivered on the Minimum Share Delivery Date shall be reduced   to such number of Shares that Seller is able to so borrow or otherwise   acquire.
    
	
 
    	
 
    	
 
    
	
Maximum   Shares:
    	
 
    	
As   specified in the Hedge Completion Notice, to be an amount equal to the   Prepayment Amount divided by the Forward Floor Price multiplied by [   ]%.
    
	
 
    	
 
    	
 
    
	
Prepayment Amount:
    	
 
    	
USD   $75,000,000
    
	
 
    	
 
    	
 
    
	
Valuation Date:
    	
 
    	
As   specified in the Hedge Completion Notice, to be the date that is [] Exchange   Business Days following the Initial Period End Date (or if such date is not   an Exchange Business Day, the next following Exchange Business Day), provided   that Seller shall have the right in its absolute discretion, to accelerate   the Valuation Date to any date that is on or after [] Exchange Business Days   following the Initial Period End Date (or if such date is not an Exchange   Business Day, the next following Exchange Business Day) (such date, the   “Scheduled Earliest Acceleration Date”), by giving notice prior to 8:00 p.m.   New York City time on the Scheduled Trading Day following such date.
    

 

21

 

	
Averaging Dates:
    	
 
    	
For   the Valuation Date, each Scheduled Trading Day starting on the first   Scheduled Trading Day following the Initial Period End Date and ending on,   and including, such Valuation Date.
    
	
 
    	
 
    	
 
    
	
Price Adjustment:
    	
 
    	
As specified in the Hedge   Completion Notice, to be equal to [ ]% of the Initial Price.
    
	
 
    	
 
    	
 
    
	
Ordinary Dividend Amount:
    	
 
    	
[]
    
	
 
    	
 
    	
 
    
	
Expected   Ex-Dividend Dates:
    	
 
    	
[]
    

 

22

 

 

HEDGE COMPLETION NOTICE

 

	
To:
    	
The Cheesecake Factory   Incorporated
 26901 Malibu Hills   Road
 Calabasas Hills,   California  91301
    
	
 
    	
 
    
	
From:
    	
Wells   Fargo Bank, National Association
    
	
 
    	
 
    
	
Subject:
    	
 
    
	
 
    	
 
    
	
Date:
    	
 
    

 

The purpose of this Hedge Completion Notice is to notify you of certain terms in the Transaction entered into between Wells Fargo Bank, National Association (“Wells Fargo”) and The Cheesecake Factory Incorporated  (“Counterparty”) bearing the trade reference number set forth above.

 

	
Initial   Price
    	
[        ]
    
	
Forward   Floor Price:
    	
[        ]
    
	
Forward   Cap Price:
    	
[        ]
    
	
Initial   Shares:
    	
[        ]
    
	
Minimum   Shares:
    	
[        ]
    
	
Maximum   Shares:
    	
[        ]
    
	
Initial   Period End Date: 
    	
[        ] 
    
	
Valuation   Date:
    	
[        ]
    
	
Scheduled   Earliest Acceleration Date:
    	
[        ]
    
	
Price   Adjustment:
    	
[        ]
    

 

 

	
 
    	
Yours   sincerely,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WELLS FARGO BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00241-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00241-of-00352.parquet"}]]