Document:

exv10w7

 

EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (hereinafter the “Agreement”) dated as of ___, 2007, is
entered into by and between Rockhill Holding Company, a Delaware corporation, (the “Company”), and
Jeffrey B. Murphy (the “Executive”).

     WHEREAS, the Company wishes to secure the services of the Executive; and

     WHEREAS, the parties wish Executive to serve as the President and Chief Executive Officer of
RTW, Inc., a Minnesota corporation (“RTW”), which is a wholly owned subsidiary of the Company, and
to enter into this Agreement on the terms and conditions hereinafter set forth.

     NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for
other good and valuable consideration, the receipt and adequacy of which are mutually acknowledged,
the Company and the Executive agree as follows:

     1. Definitions. For purposes of this Agreement, the following terms shall have the
following meanings:

      (a) “Base Salary” means the salary provided for in Section 4 or any increased
salary granted to the Executive pursuant to Section 4.

      (b) “Board” means the Board of Directors of the Company.

      (c) “Cause” means the Executive:

         (i) Has materially failed, neglected or refused to perform his duties under
this Agreement;

         (ii) Has engaged in malfeasance, misappropriation, fraud, dishonesty or gross
misconduct in the performance of his duties to the Company and such act has the
effect of injuring the business or reputation of the Company or any of its
subsidiaries or affiliates;

         (iii) Has violated any RTW or Company policies and practices and such violation
has a material adverse effect on the Company or its subsidiaries or affiliates;

         (iv) Has committed a material breach of this Agreement including those
provisions relating to confidentiality, non-competition and non-solicitation set
forth in Section 12 hereof; or

         (v) Has been convicted of or plead guilty or no contest to a crime involving
moral turpitude or a felony.

      (d) “Disability” means that the Executive (a) is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months, or (b) is, by reason of any medically
determinable physical or mental impairment which can be expected to result in death or can
be expected to last for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than 3 months under an accident and

 

 

health plan covering employees of the Executive’s employer.

      (e) “Effective Date” means the date first indicated above.

      (f) “Good Reason” means that one or more of the following events shall have
occurred:

         (i) The Company has materially changed or undermined the Executive’s rights,
duties and responsibilities as President and Chief Executive Officer of RTW or
otherwise without the Executive’s consent;

         (ii) The Company has relocated the executive offices of RTW outside of the
Minneapolis, Minnesota metropolitan area or otherwise requires the Executive to
conduct his business outside of the Minneapolis, Minnesota metropolitan area (except
for the ordinary course of business travel as contemplated by Section 3(a) of this
Agreement) without the consent of the Executive;

         (iii) The Company has committed a material breach of this Agreement, the Bonus
Pool or any Award Agreement with Executive; or

         (iv) There has been a Change of Control. A Change of Control shall occur in
the event of a change in the ownership of the Company which occurs on the date that
any one person, or more than one person acting as a group, acquires ownership of
stock of the Company that, together with stock held by such person or group,
constitutes more than 50 percent of the total fair market value or the total voting
power of the stock of the Company. Persons will be considered to be acting as a
group if they are owners of a corporation that enters into a merger, consolidation,
purchase or acquisition of stock, or a similar business transaction with the
Company.

         (v) For the purpose of this Paragraph 1(f), the Executive must provide notice
to the Company of the condition described in this Paragraph 1(f) giving rise to the
Good Reason termination, and the Company will thereafter have a period of at least
thirty days during which it may remedy the condition. In any event, the Executive
must provide written notice to the Company of the Executive’s resignation for Good
Reason within not more than two years following the Change of Control.

      (g) “Party” or “Parties” means the Company and/or the Executive.

      (h) “Person” means any individual, corporation, partnership, limited liability
company, joint venture, trust, estate, board, committee, agency, body, employee benefit plan
or other person or entity.

      (i) “Proceeding” means any threatened or actual action, suit or proceeding,
whether civil, criminal, administrative, investigative, appellate or other.

      (j) “Standard Benefit” means any amounts earned, accrued or owing to the
Executive but not yet paid, and receipt of other benefits, if any, in accordance with, and
subject to, the applicable plans and programs of the Company.

      (k) “Term of Employment” means the period specified in Section 2.

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     2. Term of Employment.

      (a) The Company agrees to employ the Executive under this Agreement, and the Executive
accepts such employment, for a period commencing on the Effective Date and ending on the
second anniversary thereof, or such later date as provided in Section 2(b). Notwithstanding
the foregoing, the Term of Employment shall be earlier terminated upon the termination of
the Executive’s employment, but only in accordance with the provisions of Section 9.

      (b) The Term of Employment shall be extended automatically for one additional year
beginning on the last day before the second anniversary of the Effective Date (the
“Extension Date”) and on each anniversary of the Extension Date thereafter unless and until,
not later than three months prior to the Extension Date or any anniversary of the Extension
Date, the Company or the Executive gives written notice to the other party that the Term of
Employment shall not be so extended.

     3. Positions; Duties; Responsibilities; and Place of Employment.

      (a) During the Term of Employment, the Executive shall be employed as the President and
Chief Executive Officer of RTW or in such other position or positions with the Company, its
subsidiaries or affiliates, as the Board shall from time to time specify. The Executive, in
carrying out his executive duties under this Agreement, shall report to the President and
Chief Executive Officer of the Company. While employed by the Company hereunder, the
Executive shall perform his duties at RTW’s offices in Minneapolis, Minnesota; provided,
however, that the Executive shall be required to travel as reasonably necessary in carrying
out his duties and obligations hereunder. The Executive is required to work the hours and
days reasonably necessary to fulfill his duties under this Agreement.

      (b) The Executive acknowledges that his duties and responsibilities hereunder will
require his full business time and effort and agrees that, during the Term of Employment, he
will not engage in any other business activity or have any business pursuits or interests
that materially interfere or conflict with the proper performance of his duties hereunder.

     4. Base Salary. Commencing as of the Effective Date, the Company shall pay the
Executive an annualized Base Salary of $350,000 during the Term of Employment. Such Base Salary
shall be payable at intervals in accordance with the regular payroll practices of the Company
applicable to executives, but no less frequently than monthly. The Board shall review the Base
Salary no less frequently than annually during the Term of Employment; provided, however, that the
Base Salary shall not be decreased during the Term of Employment below the amount set forth above
without the Executive’s consent (including, without limitation, for the purpose of determining
benefits due under Section 9).

     5. Bonus Pool. Commencing as of the Effective Date and terminating December 31, 2007,
Executive shall continue to be eligible to participate in any existing RTW bonus plan. Beginning
on January 1, 2008, the Executive shall be eligible to participate in the Rockhill Holding Company
Bonus Plan during the remaining Term of Employment, subject to the terms and conditions of the
Company’s plan.

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     6. Restricted Stock. On January 1, 2008, the Executive shall be awarded 1,000 shares
of restricted stock (“Restricted Shares”) under the Rockhill Holding Company 2005 Restricted Stock
Plan- Performance Vesting (the “Restricted Stock Plan”). Pursuant to the terms and subject to the
conditions of the Restricted Stock Plan, the shares shall vest according to the achievement of
certain performance criteria.

     7. Other Benefits.

      (a) Employee Benefits. During the Term of Employment, the Executive shall be
entitled to the benefits listed on Schedule A hereof and shall be eligible to
participate in all employee benefit plans, programs and arrangements made available
generally to the Company’s executives in accordance with the terms and subject to the
conditions of such plans, programs and arrangements; provided, however, that, except with
respect to the benefits listed on Schedule A hereof, nothing in this Agreement shall be
construed to require the Company to establish or maintain any such plans, programs or
arrangements, or to prevent the Company from terminating any such plan, program or
arrangement in accordance with its terms, except as required by law. From the period of
close to a date specifically agreed to by the President and Chief Executive Officer of the
Company and the Executive, said Executive shall continue to be eligible for benefits
historically offered by RTW.

      (b) Perquisites. During the Term of Employment, the Executive shall
participate in all fringe benefits and perquisites available to executives of the Company at
levels and on terms and conditions that are commensurate with his positions and
responsibilities at the Company. The Executive shall also receive such additional fringe
benefits and perquisites as the Company may, in its discretion, from time to time elect to
provide.

      (c) Vacation, Holidays, and Leave. During the Term of Employment, the
Executive shall be entitled to vacation, holidays, and leave in accordance with the
reasonable practices of the Company. In no instance shall said Executive lose any such or
like days previously credited by RTW.

     8. Reimbursement of Business Expenses. The Executive is authorized to incur
reasonable expenses in carrying out his duties and responsibilities under this Agreement and the
Company shall promptly reimburse the Executive for all such expenses, subject to documentation in
accordance with reasonable policies of the Company.

     9. Termination of Employment.

      (a) Termination Due to Death. If the Executive’s employment hereunder is
terminated due to his death, his estate or his beneficiaries (as the case may be) shall be
entitled to the following:

         (i) payment of Base Salary, in accordance with the Company’s regular payroll
practices (based on the Executive’s rate of annual Base Salary at the time of his
death), through the date of his death; and

         (ii) payment of the Standard Benefit.

      (b) Termination Due to Disability. If the Executive’s employment hereunder is
terminated due to Disability, the Executive shall be entitled to the following:

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         (i) payment of Base Salary, in accordance with the Company’s regular payroll
practices (based on the Executive’s rate of annual Base Salary at the time of the
Executive’s termination of employment), through the date of the Executive’s
termination of employment until commencement of long-term disability payments, but
in no event for more than one year following the last day of the Executive’s
employment;

         (ii) payment of the Standard Benefit; and

         (iii) continued participation for one year for the Executive and each of his
covered dependents in all medical, dental, hospitalization and life insurance
coverages and in all other employee welfare benefit plans, programs and
arrangements, in which the Executive and such dependents were participating at the
time of the Executive’s termination of employment, to the extent permitted by
applicable law and the terms of such programs and arrangements, on terms and
conditions no less favorable than those applying on such date.

      (c) Termination by the Company for Cause. The Company may terminate the
Executive’s employment for Cause at any time during the Term of Employment. If the Company
terminates the Executive’s employment for Cause, the Executive shall be entitled to the
following:

         (i) payment of Base Salary through the last day of the Executive’s employment;
and

         (ii) payment of the Standard Benefit.

      (d) Termination by the Company Without Cause or by the Executive for Good
Reason. The Company may terminate the Executive’s employment without Cause and the
Executive may terminate his employment voluntarily for Good Reason, at any time during the
Term of Employment. If the Executive’s employment hereunder is terminated by the Company
without Cause or by the Executive for Good Reason, subject to Section 9(f), the Executive
shall be entitled to:

         (i) payment of Base Salary, in accordance with the Company’s regular payroll
practices (based on the Executive’s rate of annual Base Salary at the time of the
Executive’s termination of employment) for twelve months following the last day of
the Executive’s employment;

         (ii) continued participation for one year for the Executive and each of his
covered dependents in all medical, dental, hospitalization and life insurance
coverages and in all other employee welfare benefit plans, programs and
arrangements, in which the Executive and such dependents were participating at the
time of the Executive’s termination of employment, to the extent permitted by
applicable law and the terms of such programs and arrangements, on terms and
conditions no less favorable than those applying on such date; and

         (iii) payment of the Standard Benefit.

      For the purposes of this Agreement and grants made to the Executive under the
Restricted Stock Plan and prior to the second anniversary of the Effective Date, in the
event the Term of Employment is not extended (whether at the Extension Date or any one

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year anniversary thereof) as a result of the Company providing notice as provided in Section
2(b), such failure to extend shall be deemed a termination by the Company without Cause.
For purposes of grants made to the Executive under the Restricted Stock Plan, termination by
the Executive for Good Reason shall be deemed a termination by the Company without Cause.

      (e) Voluntary Termination. The Executive may voluntarily terminate his
employment during the Term of Employment, provided he gives at least 30 days advance written
notice. If the Executive voluntarily terminates his employment (and not because of Good
Reason, his death or due to Disability), the Executive shall have the same entitlements
hereunder as provided in Section 9(c) in the case of a termination by the Company for Cause.

      (f) Release. Notwithstanding any provision herein to the contrary, the Company
may require that, prior to payment of any amount or provision of any benefit pursuant to
Section 9(d)(i) or (ii), the Executive shall have executed a complete release of the Company
and related parties in such form as is reasonably required by the Company and any waiting
periods contained in such release shall have expired.

     10. Assignability; Binding Nature.

      (a) This Agreement shall be binding upon and inure to the benefit of the Parties and
their respective successors, heirs and personal representatives (in the case of the
Executive) and assigns.

      (b) the Company’s rights or obligations under this Agreement may be assigned or
transferred by the Company only pursuant to a merger, consolidation or similar transaction
in which the Company is not the continuing entity, or a sale or liquidation of all or
substantially all of the assets and business of the Company; provided, that the Executive’s
written consent shall be required prior to the assignment or transfer of the Company’s
rights or obligations hereunder, and provided further, that the assignee or transferee is
the successor to all or substantially all of the assets and business of the Company and such
assignee or transferee assumes the liabilities, obligations and duties of the Company, as
contained in this Agreement, either contractually or as a matter of law. In the event of
any sale of assets and business or liquidation as described in the preceding sentence, the
Company shall use its best efforts to cause such assignee or transferee to expressly assume
the liabilities, obligations and duties of the Company hereunder and shall cause such
assignee or transferee to deliver a legal, valid and enforceable written instrument in form
and substance satisfactory to the Executive and his counsel to such effect.

      (c) No rights or obligations of the Executive under this Agreement may be assigned or
transferred by the Executive other than his rights to compensation and benefits, which may
be transferred only by will or operation of law, or as provided in Section 15(e).

     11. Representations. the Company represents and warrants that (a) it is fully
authorized by action of the Board (and of any other Person whose action is required) to enter into
this Agreement and to perform its obligations hereunder, and (b) upon the execution and delivery

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of this Agreement by the Parties, this Agreement shall be the valid and binding obligation of
the Company, enforceable against the Company in accordance with its terms.

     12. Covenant Not to Compete; Confidentiality.

      (a) Covenant Not to Compete.

         (i) The Executive agrees that for so long as the Executive is employed by the
Company, and for a period of two years following the termination of the Executive’s
employment for any reason, the Executive shall not directly or indirectly:

            (A) enter into or attempt to enter into a Restricted Business (as
defined below) in the areas of the United States in which the Company or any
of its affiliates or subsidiaries conduct business or in which the Company
has planned to conduct business within two years thereafter, as a principal,
partner, employee, consultant, agent, broker, intermediary, shareholder,
investor, officer or director (other than as a holder of not in excess of 1%
of the outstanding voting shares of any publicly traded company) which shall
include, without limitation, the following activities: (1) providing risk
management and or other services for any insurer or affiliate of an insurer
in a Restricted Business; (2) developing, handling, or managing data or
information concerning a Restricted Business; (3) participating in any
decision, or developing or implementing any strategy, to engage in a
Restricted Business; or (4) performing any functions in a Restricted
Business that are the same as, or substantially similar to, the duties
performed for the Company or any of its affiliates or subsidiaries at any
time during the 12 months preceding the termination of the Executive’s
employment;

            (B) induce or attempt to persuade any then-current employee, agent,
manager, consultant or director of the Company or any of its affiliates or
subsidiaries to terminate such employment or other relationship in order to
enter into any Restricted Business with the Executive;

            (C) use contracts, proprietary information, trade secrets, confidential
information, customer lists, mailing lists, goodwill, or other intangible
property used or useful in connection with the business of the Company or
its affiliates or subsidiaries; or

            (D) solicit or otherwise attempt to establish for the Executive or any
other Person any business relationship with any Person which is, or during
the one year period preceding the Executive’s date of termination of
employment was, a customer, client or distributor of the Company or any of
its affiliates or subsidiaries.

         (ii) For the purposes of this Section 12, a “Restricted Business” is defined as
(A) the business of producing, underwriting, writing and servicing insurance
policies directly or through relationships with affiliated and unaffiliated
insurance agents and agencies with respect to worker’s compensation insurance

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coverage that RTW, Inc. or its subsidiaries produced, had underwritten,
written, or serviced during the Executive’s Term of Employment, and (B) any other
business that would be in direct competition with the business of the Company, RTW,
or any affiliates or subsidiaries, as conducted on the date of the Executive’s
termination of employment.

         (iii) The covenants of the Executive set forth in this Section 12 shall be null
and void and without any force or effect upon the effective date of any liquidation
or dissolution of the Company.

         (iv) It is the desire and intent of the Parties that the provisions of this
Section 12 shall be enforced to the fullest extent permissible under the laws and
public policies applied in each jurisdiction in which enforcement is sought.
Accordingly, if any particular portion of this Section 12 shall be adjudicated to be
invalid or unenforceable, this Section 12 shall be deemed amended to delete
therefrom the portion thus adjudicated to be invalid or unenforceable, such deletion
to apply only with respect to the operation of this Section 12 in the particular
jurisdiction in which such adjudication is made. The Executive acknowledges that he
has received good and valuable consideration for the restrictive covenants contained
in this Section 12.

      (b) Confidentiality. The Executive acknowledges that he will develop and be
exposed to information that is or will be proprietary to the Company or its affiliates,
including, but not limited to, customer lists, marketing plans, pricing data, product
development plans and other intangible information. Such information shall be deemed
confidential to the extent such information is not generally known to the public or in the
Company’s industry. The Executive agrees to use such information only in connection with
the performance of his duties hereunder and to maintain such information in confidence;
provided, however, that the Executive may disclose such information when required to by law
or by a court, government agency, legislative body or other Person with apparent
jurisdiction to order him to divulge, disclose or make accessible such information.

      (c) Company Property. Promptly following any termination of Executive’s
employment with the Company, the Executive shall return to the Company or its affiliates (as
applicable) all property of the Company or its affiliates and all copies thereof in the
Executive’s possession or under his control.

      (d) Non-Disparagement. During the Term of Employment and thereafter for two
years following the date of any termination of the Executive’s employment with the Company,
(i) neither the Executive nor the Company or any of its affiliates shall engage in conduct
that could be disruptive in any way to the business or operations of the other or that could
wrongfully interfere therewith, and (ii) neither the Executive nor the Company or any of its
affiliates shall make at any time in the future any derogatory comments concerning the other
or the business or operations of the other; provided, however, that nothing in this Section
12 (d) shall be deemed to prevent either Party from enforcing the other terms of this
Agreement.

     13. Governing Law and Arbitration; Waiver of Jury Trial. This Agreement shall be
governed by the laws of the State of Minnesota, without reference to principles of conflicts or

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choice of law under which the law of any other jurisdiction would apply. Any dispute or
controversy arising under or in connection with this Agreement shall first be submitted to
non-binding mediation. In the event such mediation fails to resolve such dispute or controversy
then such dispute or controversy shall be settled exclusively by binding arbitration in St. Paul,
Minnesota, in accordance with the rules of the American Arbitration Association then in effect, by
an arbitrator that is acceptable to the Company and the Executive. In the event that the Company
and the Executive do not agree on an acceptable arbitrator within 30 days of the date any claim for
arbitration hereunder is asserted, the Company and the Executive each shall appoint one arbitrator,
who shall appoint a third arbitrator to settle the dispute or controversy. In addition to any
other awards granted to the prevailing party in any such dispute or controversy the prevailing
party shall also be entitled to indemnification from the other party for all fees and expenses
arising in connection with any such dispute or controversy governed by this Section 13 (including
attorney’s fees). Judgment may be entered on the arbitrator’s award in any court having
jurisdiction.

     14. Notices. Any notice required or desired to be delivered under this Agreement
shall be in writing and shall be delivered personally, by courier service, by registered mail,
return receipt requested, or by telecopy and shall be effective upon actual receipt by the Party to
which such notice shall be directed, and shall be addressed as follows (or to such other address as
the Party entitled to notice shall hereafter designate in accordance with the terms hereof):

If to the Company:

Rockhill Holding Company

700 W. 47th St., Ste. 350

Kansas City, MO 64112

Attention: Terry L. Younghanz

     If to the Executive, at his address as filed with the Company’s personnel records.

15. Miscellaneous.

      (a) Entire Agreement. This Agreement contains the entire understanding and
agreement between the Parties concerning the subject matter hereof and, as of the Effective
Date, supersedes all prior agreements, understandings, discussions, negotiations and
undertakings, whether written or oral, between the Parties with respect thereto. There is
no applicable disciplinary or grievance procedure or collective bargaining agreement.

      (b) Severability. In the event that any provision or portion of this Agreement
shall be determined to be invalid or unenforceable for any reason, in whole or in part, the
remaining provisions of this Agreement shall be unaffected thereby and shall remain in full
force and effect to the fullest extent permitted by law so as to achieve the purposes of
this Agreement.

      (c) Amendment or Waiver. No provision in this Agreement may be amended unless
such amendment is set forth in writing and signed by the Parties. No waiver by either Party
of any breach of any condition or provision contained in this Agreement shall be deemed a
waiver of any similar or dissimilar condition or provision at the same or any

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prior or subsequent time. To be effective, any waiver must be set forth in writing and
signed by the waiving Party.

      (d) Headings. The headings of the sections contained in this Agreement are for
convenience only and shall not be deemed to control or affect the meaning or construction of
any provision of this Agreement.

      (e) Beneficiaries/References. The Executive shall be entitled, to the extent
permitted under any applicable law, to select and change a beneficiary or beneficiaries to
receive any compensation or benefit hereunder following the Executive’s death by giving the
Company written notice thereof. In the event of the Executive’s death or a judicial
determination of his incompetence, reference in this Agreement to the Executive shall be
deemed, where appropriate, to refer to his beneficiary, estate or other legal
representative.

      (f) Survivorship. Notwithstanding anything contained herein to the contrary,
if the Executive’s employment with the Company terminates during the Term of Employment,
Sections 1, 9, 12, 13, 14 and 15 of this Agreement, and the Parties’ respective rights and
obligations under such provisions, shall survive until all of the Parties’ obligations under
such provisions are satisfied.

      (g) Counterparts. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which, when taken together, shall
constitute one and the same instrument.

      (h) Withholding. The Company shall make deductions from any payments provided
for herein in respect of payroll tax, as applicable, up to the maximum permitted by law, as
well as any other amounts required to be withheld from time to time under any applicable
income or employment tax laws or similar statutes or other provisions of law then in effect,
and, with respect to any non-cash compensation or benefits with respect to which a tax
withholding obligation will arise, may require as a condition to receipt of such
compensation or benefit that the Executive make arrangements with the Company for the
satisfaction of such tax withholding obligation.

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set
forth above.

	 	 	 	 	 	 	 
	 	 	ROCKHILL HOLDING COMPANY
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Jeffrey B. Murphy	 	 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

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Schedule A

The Executive shall be entitled to the following benefits:

1. Term life insurance in the amount of $2,000,000 with the Executive’s spouse as beneficiary; and

2. Directors and Officers coverage in the amount of $5,000,000.

11EX-10.1 BRIDGE FACILITY AGREEMENT

 

Exhibit 10.1

EXECUTION COPY

Bridge Facility Agreement

Dated September 21, 2007

Santander BanCorp (“Santander”)

Santander Financial Services, Inc. (“Santander FS”)

(each a “Borrower” and together the “Borrowers”)

Banco Santander Puerto Rico (“Bank”)

 

 

Bridge Facility Agreement

Contents

	 	 	 	 	 
	Details
	 	 	1	 
	 
	 	 	 	 
	General terms
	 	 	3	 
	 
	 	 	 	 
	1 Interpretation
	 	 	3	 
	1.1 Definitions
	 	 	3	 
	1.2 References to certain general terms
	 	 	7	 
	1.3 Number
	 	 	8	 
	1.4 Headings
	 	 	8	 
	2 The Facility and Facility Limits
	 	 	8	 
	2.1 Bank to fund
	 	 	8	 
	2.2 Maximum accommodation — Limits
	 	 	8	 
	2.3 Liability of the Borrowers
	 	 	8	 
	2.4 Purpose
	 	 	9	 
	3 Using the Facility
	 	 	9	 
	3.1 Drawing down
	 	 	9	 
	3.2 Requesting a drawdown
	 	 	9	 
	3.3 Effect of a Drawdown Notice
	 	 	9	 
	3.4 Conditions to drawdown
	 	 	9	 
	3.5 Conditions to all drawdowns
	 	 	10	 
	3.6 Benefit of conditions
	 	 	10	 
	4 Interest
	 	 	10	 
	4.1 Interest charges
	 	 	10	 
	4.2 When Interest Periods begin and end
	 	 	10	 
	5 Repaying and prepaying
	 	 	11	 
	5.1 Repayment
	 	 	11	 
	5.2 Prepayment
	 	 	11	 
	5.3 Prepayments not available for redrawing
	 	 	11	 
	6 Payments
	 	 	11	 
	6.1 Manner of payment
	 	 	11	 
	6.2 No Withholding
	 	 	12	 
	7 Cancellation
	 	 	12	 
	8 Increased costs
	 	 	12	 
	8.1 Compensation
	 	 	12	 
	8.2 Possible minimization
	 	 	13	 
	9 Illegality or impossibility
	 	 	13	 
	9.1 Bank’s right to suspend or cancel
	 	 	13	 
	9.2 Extent and duration
	 	 	14	 
	9.3 Notice requiring prepayment
	 	 	14	 
	10 Representations and warranties
	 	 	14	 
	10.1 Representations and warranties
	 	 	14	 
	10.2 Repetition of representations and warranties
	 	 	15	 
	10.3 Reliance
	 	 	15	 
	11 Undertakings
	 	 	16	 
	11.1 General undertakings
	 	 	16	 

 

 

	 	 	 	 	 
	12 Default
	 	 	16	 
	12.1 Events of Default
	 	 	16	 
	12.2 Consequences of default
	 	 	18	 
	12.3 Investigation of default
	 	 	18	 
	13 Costs and indemnities
	 	 	18	 
	13.1 What the Borrowers agree to pay
	 	 	18	 
	13.2 Indemnity
	 	 	18	 
	14 Interest on overdue amounts
	 	 	19	 
	14.1 Obligation to pay
	 	 	19	 
	14.2 Compounding
	 	 	19	 
	14.3 Interest following judgment
	 	 	19	 
	15 Application of payments
	 	 	20	 
	16 Dealing with interests
	 	 	20	 
	16.1 No dealing by Borrowers
	 	 	20	 
	16.2 Dealings by Bank
	 	 	20	 
	17 Notices and other communications
	 	 	20	 
	17.1 Form — all communications
	 	 	20	 
	17.2 Form — communications sent by email
	 	 	20	 
	17.3 Delivery
	 	 	20	 
	17.4 When effective
	 	 	21	 
	17.5 When taken to be received
	 	 	21	 
	17.6 Receipt outside business hours
	 	 	21	 
	17.7 Waiver of notice period
	 	 	21	 
	18 General
	 	 	22	 
	18.1 Application to Transaction Documents
	 	 	22	 
	18.2 Prompt performance
	 	 	22	 
	18.3 Consents
	 	 	22	 
	18.4 Certificates
	 	 	22	 
	18.5 Set-off
	 	 	22	 
	18.6 Discretion in exercising rights
	 	 	22	 
	18.7 Partial exercising of rights
	 	 	22	 
	18.8 No liability for loss
	 	 	23	 
	18.9 Conflict of interest
	 	 	23	 
	18.10 Remedies cumulative
	 	 	23	 
	18.11 Indemnities
	 	 	23	 
	18.12 Rights and obligations are unaffected
	 	 	23	 
	18.13 Inconsistent law
	 	 	23	 
	18.14 Supervening legislation
	 	 	23	 
	18.15 Time of the essence
	 	 	23	 
	18.16 Variation and waiver
	 	 	23	 
	18.17 Further steps
	 	 	24	 
	18.18 Counterparts
	 	 	24	 
	18.19 Governing law
	 	 	24	 
	 
	 	 	 	 
	Schedule 1 - Conditions precedent (clause 3.4)
	 	 	1	 
	 
	 	 	 	 
	Schedule 2 - Drawdown Notice (clause 3)
	 	 	1	 
	 
	 	 	 	 
	Signature page
	 	 	2	 

 

 

Details

Parties

	 	 	 	 	 
	Parties	 	Santander, Santander FS and Bank
	 
	Santander BanCorp
	 	Name	 	Santander BanCorp
	 
	 	 	 	 
	 
	 	IRS TAX ID	 	66-0573723
	 
	 	 	 	 
	 
	 	Incorporated	 	Commonwealth of Puerto Rico
	 
	 	 	 	 
	 
	 	Address	 	207 Ponce de Leon Avenue
	 
	 	 	 	4th Floor
	 
	 	 	 	San Juan, PR 00918
	 
	 	 	 	 
	 
	 	Fax	 	+1-787-777-4191
	 
	 	 	 	 
	 
	 	Telephone	 	+1- 787-777-4486
	 
	 	 	 	 
	 
	 	Email	 	fbruno@bspr.com
	 
	 	 	 	 
	 
	 	Attention	 	Fernando L. Bruno
	 
	 	 	 	 
	Santander FS
	 	Name	 	Santander Financial Services, Inc.
	 
	 	 	 	 
	 
	 	IRS TAX ID	 	66-0422347
	 
	 	 	 	 
	 
	 	Incorporated	 	Commonwealth of Puerto Rico
	 
	 	 	 	 
	 
	 	Address	 	207 Ponce de Leon Avenue
	 
	 	 	 	4th Floor
	 
	 	 	 	San Juan, PR 00918
	 
	 	 	 	 
	 
	 	Fax	 	+1-787-777-4191
	 
	 	 	 	 
	 
	 	Telephone	 	+1-787-777-4486
	 
	 	 	 	 
	 
	 	Email	 	fbruno@bspr.com
	 
	 	 	 	 
	 
	 	Attention	 	Fernando L. Bruno
	 
	 	 	 	 
	Bank
	 	Name	 	Banco Santander Puerto Rico
	 
	 	 	 	 
	 
	 	IRS TAX ID	 	66-312389

1

 

	 	 	 	 	 
	Parties	 	Santander, Santander FS and Bank
	 
	 	Incorporated in	 	Commonwealth of Puerto Rico
	 
	 	 	 	 
	 
	 	Address	 	207 Ponce de Leon Avenue
	 
	 	 	 	5th Floor
	 
	 	 	 	San Juan, PR 00918
	 
	 	 	 	 
	 
	 	Fax	 	787-767-7913
	 
	 	 	 	 
	 
	 	Telephone	 	787-777-4534
	 
	 	 	 	 
	 
	 	Email	 	cmgarcia@bspr.com
	 
	 	 	 	 
	 
	 	Attention	 	Carlos M. García

Summary of facility

	 	 	 	 	 
	Facility

	 	Facility Limit
	 	 $680,000,000
	 
	 	 	 	 
	 

	 	Santander BanCorp Facility Limit
	 	 $235,000,000
	 

	 	Santander FS 
Facility Limit
	 	 $445,000,000
	 
	 	 	 	 
	 

	 	Availability Period
	 	The period from the date of
this agreement to September
30, 2007
	 
	 	 	 	 
	 

	 	Maturity Date
	 	October 3, 2007
	 
	 	 	 	 
	 

	 	Margin
	 	0.10% per annum
	 
	 	 	 	 
	 

	 	Purpose
	 	To refinance borrowings from
National Australia Bank
Limited, which were used to
refinance the outstanding
indebtedness incurred in
connection with an amended
and restated loan agreement
with Lloyds TBS Bank plc, and
for general corporate
purposes.

2

 

Bridge Facility Agreement

General terms

	1	 	Interpretation
	 
	1.1	 	Definitions
	 
	 	 	These meanings apply unless the contrary intention appears:
	 
	 	 	Amount Owing means the total of all amounts which are then due for payment, or which
will or may become due for payment, in connection with any Transaction Document (including
transactions in connection with them) to the Bank.
	 
	 	 	Authorized Officer means any appointed by the party to act as an Authorized Officer for
the purposes of the Transaction Documents
	 
	 	 	Availability Period means the period from the date of this agreement to September 30,
2007.
	 
	 	 	Bank means the person so described above in the Details.
	 
	 	 	Borrower means Santander or Santander FS, as the context requires.
	 
	 	 	Borrowers means Santander and Santander FS.
	 
	 	 	Business Day means a day on which banks are open for general banking business in
Madrid, Spain, New York, New York and San Juan, Puerto Rico (not being a Saturday, Sunday or
public holiday in any such place).
	 
	 	 	BSCH means Banco Santander, SA.
	 
	 	 	Control of a corporation includes the direct or indirect power to directly or
indirectly:

	 	  (a)	 	direct the management or policies of the corporation; or
	 
	 	  (b)	 	control the membership of the board of directors,
	 
	 	  (c)	 	whether or not the power has statutory, legal or equitable force or is based on
statutory, legal or equitable rights and whether or not it arises by means of trusts,
agreements, arrangements, understandings, practices, the ownership of any interest in
            shares or stock of the corporation or otherwise.

	 	 	Costs includes costs, charges and expenses, including those incurred in connection with
advisors.
	 
	 	 	Default Rate means the Interest Rate plus 2% per annum. For the purpose of this
definition, the Interest Rate is calculated as if the overdue amount is a Drawing with
Interest Periods of

3

 

		 	30 days (or another period chosen from time to time by the Bank) with
the first Interest Period starting on and including the due date.
	 
	 	 	Details means the section of this agreement headed “Details.”
	 
	 	 	Directive means:

	 	(a)	 	a law; or
	 
	 	(b)	 	a treaty, an official directive, request, guideline or policy (whether or not
having the force of law) with which responsible financiers generally comply in carrying
on their business.

	 	 	Drawdown Date means the date on which a drawdown is or is to be made.
	 
	 	 	Drawdown Notice means a completed notice containing the information and representations
and warranties set out in Schedule 2.
	 
	 	 	Drawing means the outstanding principal amount of a drawdown made under the Facility.
	 
	 	 	Event of Default means an event so described in clause 12 (“Default”).
	 
	 	 	Facility means the Santander BanCorp Facility or the Santander FS Facility or both, as
the context requires.
	 
	 	 	Facility Limit means the sum of the Santander BanCorp Facility Limit and the Santander
FS Facility Limit, as each may be reduced or cancelled under this agreement.
	 
	 	 	Financial Report means a financial report consisting of:

	 	(a)	 	financial statements; and
	 
	 	(b)	 	any notes to those financial statements; and
	 
	 	(c)	 	any directors’ declaration about the financial statements and notes,

	 	 	together with any reports (including any directors’ reports) attached to any of those
documents or intended to be read with any of them.
	 
	 	 	A person is Insolvent if:

	 	(a)	 	it is (or states that it is) an insolvent under administration or insolvent
(within the meaning of any relevant law); or
	 
	 	(b)	 	it is in liquidation, in provisional liquidation, under administration or wound
up or has had a controller appointed to its property; or
	 
	 	(c)	 	it is subject to any arrangement, assignment, moratorium or composition,
protected from creditors under any statute or dissolved (in each case, other than to
carry out a reconstruction or amalgamation while solvent on terms approved by the
Bank); or

4

 

	 	(d)	 	an application or order has been made (and, in the case of an application, it
is not stayed, withdrawn or dismissed within 30 days), resolution passed, proposal put
forward, or any other action taken, in each case in connection with that person, which
is preparatory to or could result in any of (a), (b) or (c) above; or
	 
	 	(e)	 	it is otherwise unable to pay its debts when they fall due; or
	 
	 	(f)	 	something having a substantially similar effect to (a) to (e) happens in
connection with that person under the law of any jurisdiction.

	 	 	Interest Payment Date means the last day of an Interest Period.
	 
	 	 	Interest Period means, subject to clause 4.2, a period of 30 days.
	 
	 	 	Interest Rate means LIBOR plus the Margin.
	 
	 	 	LIBOR means, for any date (“Relevant Date”) and period (“Relevant Period”) and amount
(“Relevant Amount”), the rate for deposits in U.S. dollars for the Relevant Period (or
nearest period) which appears on the Reuters Page LIBOR01 as of 11:00am, London time, on the
day that is two London banking days preceding the Relevant Date. If such rates does not
appear on the Reuters Page LIBOR01, the rate for the Relevant Date will be determined on the
basis of the rates at which deposits in U.S. dollars are offered by the Reference Banks at
approximately 11:00am., London time, on the day that is two London banking days preceding
the Relevant Date to prime banks in the London interbank market for the Relevant Period
commencing on the Relevant Date and in the Relevant Amount. The Bank will request the
principal London office of each of the Reference Banks to provide a quotation of its rate.
If at least two such quotations are provided, the rate for the Relevant Date will be the
arithmetic mean of the quotations. If fewer than two quotations are provided as requested,
the rate for the Relevant Date will be the arithmetic mean of the rates quoted by major
banks in New York City, selected by the parties, at approximately 11:00am., New York City
time, on the Relevant Date for loans in U.S. dollars to leading European banks for the
Relevant Period commencing on the Relevant Date and in the Relevant Amount.
	 
	 	 	Limit means:

	 	(a)	 	the Facility Limit;
	 
	 	(b)	 	the Santander BanCorp Facility Limit; and

	 	(c)	 	Santander FS Facility Limit,

		 	or any of them, as the context requires.
	 
	 	 	Material Adverse Effect means a material adverse effect on:

	 	(a)	 	the applicable Borrower’s ability to comply with its obligations under any
Transaction Document; or
	 
	 	(b)	 	the Bank’s rights under a Transaction Document; or
	 
	 	(c)	 	the business or financial condition of the applicable Borrower.

5

 

	 	 	Margin means a margin of 0.10% per annum.
	 
	 	 	Maturity Date means October 3, 2007.
	 
	 	 	Moody’s means Moody’s Investors Service, Inc. and any successor or successors.
	 
	 	 	Potential Event of Default means an event which, with the giving of notice, lapse of
time or fulfillment of any condition, would be likely to become an Event of Default.
	 
	 	 	Reference Banks means four major banks in the London interbank market selected by the Bank.
	 
	 	 	S&P means Standard & Poor’s Ratings Services, a division of The McGraw Hill Companies,
Inc., and any successor or successors.
	 
	 	 	Santander BanCorp Facility means the facility made available to Santander under this
agreement.
	 
	 	 	Santander BanCorp Facility Limit means $235,000,000.
	 
	 	 	Santander FS Facility means the facility made available to Santander FS under this
agreement.
	 
	 	 	Santander FS Facility Limit means $445,000,000.
	 
	 	 	Santander Group means the corporate group comprising BSCH and its consolidated
Subsidiaries.
	 
	 	 	Security Agreement, Pledge and Assignment means the Security Agreement, Pledge and
Assignment dated on or about the date of this Bridge Facility Agreement, between BSCH and
the Bank.
	 
	 	 	Subsidiary of an entity means another entity which:

	 	(a)	 	is a subsidiary of the first entity within the meaning of any applicable
legislation, if the context requires it; or
	 
	 	(b)	 	is part of the consolidated entity constituted by the first entity and the
entities it is required to include in the consolidated financial statements it
prepares, or would be if the first entity was required to prepare consolidated
financial statements.

	 	 	Taxes means taxes, levies, imposts, deductions, charges, withholdings and duties
(including any withholding tax, stamp duties and transaction duties) imposed by any
authority together with any related interest, penalties, fines and expenses in connection
with them, except if imposed on, or calculated having regard to, the net income of the Bank
or any tax imposed on the Bank as a result of conducting business operations in Puerto Rico.

6

 

Transaction Documents means:

	 	(a)	 	this agreement;
	 
	 	(b)	 	any Drawdown Notice;
	 
	 	(c)	 	the Security Agreement, Pledge and Assignment;
	 
	 	(d)	 	any document which a Borrower or BSCH acknowledges in writing to be a
Transaction Document; and
	 
	 	(e)	 	any other document connected with any of them.

	1.2	 	References to certain general terms
	 
	 	 	Unless the contrary intention appears, in this agreement:

	 	(a)	 	a reference to a group of persons is a reference to any two or more of them
jointly and to each of them individually;
	 
	 	(b)	 	an agreement, representation or warranty in favor of two or more persons is for
the benefit of them jointly and each of them individually;
	 
	 	(c)	 	an agreement, representation or warranty by two or more persons binds them
jointly and each of them individually but an agreement, representation or warranty by
the Bank binds the Bank individually only;
	 
	 	(d)	 	a reference to any thing (including an amount) is a reference to the whole and
each part of it;
	 
	 	(e)	 	a reference to a document (including this agreement) includes any variation or
replacement of it;
	 
	 	(f)	 	a reference to United States dollars, dollars, $ or US$ is a reference to the
lawful currency of the United States of America;
	 
	 	(g)	 	a reference to a time of day is a reference to Puerto Rico time;
	 
	 	(h)	 	the word “person” includes an individual, a firm, a body corporate, an
unincorporated association and an authority;
	 
	 	(i)	 	a reference to a particular person includes the person’s executors,
administrators, successors, substitutes (including persons taking by novation) and
assigns;
	 
	 	(j)	 	the words “including,” “for example” or “such as” when introducing an example,
do not limit the meaning of the words to which the example relates to that example or
examples of a similar kind;
	 
	 	(k)	 	an Event of Default or Potential Event of Default is “continuing” if it has not
been waived by, or remedied to the satisfaction of, the Bank.

7

 

	1.3	 	Number
	 
	 	 	The singular includes the plural and vice versa.
	 
	1.4	 	Headings
	 
	 	 	Headings and the Summary in the Details are for convenience only and do not affect the
interpretation of this agreement.
	 
	2	 	The Facility and Facility Limits
	 
	2.1	 	Bank to fund
	 
	 	 	The Bank agrees to provide the financial accommodation requested by the Borrowers under this
agreement.
	 
	2.2	 	Maximum accommodation — Limits

	 	(a)	 	Subject to paragraphs (b) and (c), the maximum total amount of financial
accommodation available to the Borrowers under this agreement is the Facility Limit.
	 
	 	(b)	 	Within the Facility Limit:

	 	(i)	 	the maximum total amount of financial accommodation available
to Santander is the Santander BanCorp Facility Limit; and
	 
	 	(ii)	 	the maximum total amount of financial accommodation available
to Santander FS is the Santander FS Facility Limit.

	 	(c)	 	To avoid doubt:

	 	(i)	 	no part of the Santander BanCorp Facility Limit is available to
be borrowed by Santander FS; and
	 
	 	(ii)	 	no part of the Santander FS Facility Limit is available to be
borrowed by Santander.

	2.3	 	Liability of the Borrowers
	 
	 	 	The Borrowers’ obligations to pay principal and interest in connection with the Facilities
is several and not joint. Therefore:

	 	(a)	 	a Drawing by Santander under the Santander BanCorp Facility, all amounts of
interest (including default interest) in connection with that Drawing, and amounts
payable under clause 6.2 in connection with any payment by Santander, are repayable or
payable (as the case may be) by Santander and not by Santander FS; and
	 
	 	(b)	 	a Drawing by Santander FS under the Santander FS Facility, all amounts of
interest (including default interest) in connection with that Drawing, and amounts
payable

8

 

	 	 	 	under clause 6.2 in connection with any payment by Santander FS, are repayable
or payable (as the case may be) by Santander FS and not by Santander.

Subject only to clause Error! Reference source not found., the Borrowers are jointly and
severally liable to pay all other amounts payable under the Transaction Documents (including
amounts payable under indemnities to the extent they do not comprise amounts in the nature
of those described in paragraphs (a) or (b)).

	2.4	 	Purpose
	 
	 	 	Drawings under the Facilities may only be used to refinance borrowings from National
Australia Bank Limited, which were used to refinance the outstanding indebtedness incurred
in connection with an amended and restated loan agreement with Lloyds TBS Bank plc, and for
general corporate purposes, and for no other purpose.
	 
	3	 	Using the Facility
	 
	3.1	 	Drawing down
	 
	 	 	The Borrowers need not use the Facility. However, if a Borrower wants to use a Facility, a
Borrower may do so by a single drawdown. The undrawn part of a Facility is automatically
cancelled after the Drawing is made.
	 
	3.2	 	Requesting a drawdown
	 
	 	 	If a Borrower wants a drawdown, it agrees to give a Drawdown Notice to the Bank by 11.00 am
(Puerto Rico time) on the Business Day next preceding the day it wants the drawdown. Each
Borrower must provide its own Drawdown Notice.
	 
	3.3	 	Effect of a Drawdown Notice
	 
	 	 	A Drawdown Notice is effective when the Bank actually receives it in legible form. An
effective Drawdown Notice is irrevocable.
	 
	3.4	 	Conditions to drawdown
	 
	 	 	Neither Borrower may request a drawdown until the Bank has received every item listed in
Schedule 1 (“Conditions precedent”) in form and substance satisfactory to the Bank.
Any item required to be certified must be certified by a secretary or a director of the
applicable Borrower as being true and complete as at a date no earlier than the date of this
agreement.
	 
	 	 	The Bank agrees to notify the applicable Borrower as soon as practicable after the Bank
receives the final item.
	 
	3.5	 	Conditions to all drawdowns
	 
	 	 	The Bank need not provide any financial accommodation unless:

	 	(a)	 	it is to be provided during the Availability Period; and

9

 

	 	(b)	 	it is satisfied that the financial accommodation is to be used solely for the
purpose described in clause 2.4; and
	 
	 	(c)	 	the Bank has received a Drawdown Notice in respect of it; and
	 
	 	(d)	 	the Bank is satisfied that the representations and warranties in clause 10
(“Representations and warranties”) and in the Drawdown Notice, and the statements in
the Drawdown Notice, are correct and not misleading at the date of the Drawdown Notice
and at the date the accommodation is provided; and
	 
	 	(e)	 	the Bank is satisfied that no Event of Default or Potential Event of Default is
continuing, or would result from the accommodation being provided; and
	 
	 	(f)	 	the Bank has received all other documents and other information it reasonably
requests.

	3.6	 	Benefit of conditions
	 
	 	 	Each condition to drawdown is for the sole benefit of the Bank and may be waived by it.
	 
	4	 	Interest
	 
	4.1	 	Interest charges
	 
	 	 	Each Borrower agrees to pay interest on the Drawing for each of its Interest Periods at the
applicable Interest Rate. Interest:

	 	(a)	 	accrues daily from and including the first day of an Interest Period to but
excluding the last day of the Interest Period; and
	 
	 	(b)	 	is payable on each Interest Payment Date; and
	 
	 	(c)	 	is calculated on actual days elapsed and a year of 360 days.

	4.2	 	When Interest Periods begin and end

	 	(a)	 	The first Interest Period for a Drawing begins on the Drawdown Date.
	 
	 	(b)	 	Each subsequent Interest Period begins on the day when the preceding Interest
Period for the Drawing ends.
	 
	 	(c)	 	An Interest Period which would otherwise end on a day which is not a Business
Day ends on the previous Business Day.
	 
	 	(d)	 	However, an Interest Period which would otherwise end after the Maturity Date
ends on the Maturity Date.

10

 

	5	 	Repaying and prepaying
	 
	5.1	 	Repayment
	 
	 	 	Each Borrower agrees to repay the Drawing in full on the Maturity Date.
	 
	5.2	 	Prepayment
	 
	 	 	A Borrower may prepay the Drawing in full (but not in part) by notifying the proposed
prepayment to the Bank by 11.00 am (Puerto Rico time) on the second Business Day before the
prepayment (once given, a notice of prepayment is irrevocable and the Borrower is obliged to
prepay in accordance with the notice).
	 
	 	 	If the prepayment is made on the last day of the Interest Period for the Drawing, no break
costs or other fees or charges are payable. However, if a Borrower prepays on a day other
than the last day of the Interest Period for the Drawing, it may be liable for break costs -
see clause 13.2 (“Indemnity”).
	 
	5.3	 	Prepayments not available for redrawing
	 
	 	 	Amounts prepaid or repaid, as the case may be, may not be redrawn.
	 
	6	 	Payments
	 
	6.1	 	Manner of payment
	 
	 	 	Unless a provision of a Transaction Document expressly states otherwise, each Borrower
agrees to make payments (including payments by way of reimbursement) under each Transaction
Document:

	 	(a)	 	on the due date (or, if that is not a Business Day, on the previous Business
Day); and
	 
	 	(b)	 	not later than 11.00 am, Puerto Rico time; and
	 
	 	(c)	 	in United States dollars in immediately available funds; and
	 
	 	(d)	 	to the Bank by payment into the following account, or as the Bank otherwise
directs:

Bank:

Swift:

ABA:

For account of:

Account No.:

Reference:

11

 

	 	 	If the Bank directs a Borrower to pay a particular party or in a particular manner, a
Borrower is taken to have satisfied its obligation to the Bank by paying in accordance with
the direction.
	 
	 	 	A Borrower satisfies a payment obligation only when the Bank or the person to whom it has
directed payment receives the amount.
	 
	6.2	 	No Withholding
	 
	 	 	All payments to be made by a Borrower must be made without set-off or counter-claim, and be
free and clear of any withholding or deduction for Taxes unless prohibited by law. If any
deduction is required by law, the relevant Borrower will make the deduction, pay any Taxes,
and pay to the Bank further amount(s) sufficient to ensure that the Bank receives the same
net amount as it would have received if no deduction had been made.
	 
	7	 	Cancellation
	 
	 	 	Before a Drawing is made, a Borrower may cancel an undrawn Facility in whole or in part by
notifying the Bank on or before the second Business Day before the cancellation is to take
effect. A partial cancellation must be at least $1,000,000 and a whole multiple of
$1,000,000. Once given, the notice is irrevocable. The relevant Limits will be reduced by
the amount of any cancellation.
	 
	8	 	Increased costs
	 
	8.1	 	Compensation
	 
	 	 	Each Borrower agrees to compensate the Bank on demand if the Bank determines that:

	 	(a)	 	a Directive or change in Directive, in either case applying for the first time
after the date of this agreement; or
	 
	 	(b)	 	a change in a Directive’s interpretation or administration by an authority
after the date of this agreement; or
	 
	 	(c)	 	compliance by the Bank or any of its Related Entities with any such Directive,
changed Directive or changed interpretation or administration

directly or indirectly:

	 	(i)	 	increases the cost of the Facility to the Bank or any of its
Related Entities; or
	 
	 	(ii)	 	reduces any amount received or receivable by the Bank, or the
effective return to, the Bank or any of its Related Entities, in connection
with the Facility; or
	 
	 	(iii)	 	reduces the return on capital allocated to the Facility.

12

 

	 	 	In this clause 8.1, a reference to a Directive does not include a Directive imposing or
changing the basis of a tax on the overall net income of the Bank.
	 
	 	 	The Bank shall notify the Borrowers of any event occurring after the date of this agreement
entitling the Bank to compensation under this clause 8.1 as promptly as practicable, but in
any event within two days after the Bank obtains actual knowledge thereof, provided that if
the Bank fails to give such notice to the Borrowers within two days after it obtains actual
knowledge of such event, the Bank shall only be entitled to payment under clause 8.1 for
costs or other amounts incurred or payable from and after the date that is two days prior to
the date of actual notice to the Borrowers.
	 
	 	 	Compensation need not be in the form of a lump sum and may be demanded as a series of
payments.
	 
	8.2	 	Possible minimization
	 
	 	 	Each Borrower agrees to compensate the Bank whether or not the increase or reduction could
have been avoided. However, if a Borrower asks, the Bank agrees to consider ways of
minimizing any increase or reduction.
	 
	9	 	Illegality or impossibility
	 
	9.1	 	Bank’s right to suspend or cancel
	 
	 	 	This clause 9 applies if the Bank determines that:

	 	(a)	 	a change in a Directive; or
	 
	 	(b)	 	a change in the interpretation or administration of a Directive by an
authority; or
	 
	 	(c)	 	a Directive,

applying for the first time after the date of this agreement, makes it (or will make it)
illegal or impossible in practice for the Bank to fund, provide, or continue to fund or
provide, financial accommodation under the Transaction Documents. In these circumstances,
the Bank, by giving a notice to the Borrowers, may suspend or cancel some or all of the
Bank’s obligations under this agreement as indicated in the notice.

	9.2	 	Extent and duration
	 
	 	 	The suspension or cancellation:

	 	(a)	 	must apply only to the extent necessary to avoid the illegality or
impossibility; and
	 
	 	(b)	 	in the case of suspension, may continue only for so long as the illegality or
impossibility continues.

13

 

	9.3	 	Notice requiring prepayment
	 
	 	 	If the illegality or impossibility relates to the Drawing, the Bank, by giving a notice to
the Borrowers, may require prepayment of all or part of the Drawing and interest accrued on
that part. Each Borrower agrees to repay the amount specified within two Business Days
after receiving the notice (or, if earlier, on the date the illegality or impossibility
arises).
	 
	10	 	Representations and warranties
	 
	10.1	 	Representations and warranties
	 
	 	 	Each Borrower represents and warrants in respect of itself that:

	 	(a)	 	(incorporation and existence) it has been incorporated in accordance with the
laws of the Commonwealth of Puerto Rico, is validly existing under those laws and has
power and authority to carry on its business as it is now being conducted; and
	 
	 	(b)	 	(power) it has power to enter into the Transaction Documents to which it is a
party and comply with its obligations under them; and
	 
	 	(c)	 	(no contravention or exceeding power) the Transaction Documents and the
transactions under them which involve it do not contravene its constituent documents
(if any) or any law or obligation by which it is bound or to which any of its assets
are subject, where such contravention has or is likely to have a Material Adverse
Effect, or cause a limitation on its powers or the powers of its directors to be
exceeded; and
	 
	 	(d)	 	(authorizations) it has in full force and effect the authorizations necessary
for it to enter into the Transaction Documents to which it is a party, to comply with
its obligations and exercise its rights under them and to allow them to be enforced;
and
	 
	 	(e)	 	(validity of obligations) its obligations under the Transaction Documents are
valid and binding and are enforceable against it in accordance with their terms; and
	 
	 	(f)	 	(benefit) it benefits by entering into the Transaction Documents to which it is
a party; and
	 
	 	(g)	 	(accounts) its most recent Financial Report given to the Bank complies with the
requirements of any applicable laws and:

	 	(i)	 	complies with any applicable accounting standards; and
	 
	 	(ii)	 	gives a true and fair view of its financial position and
performance or, if it is required to prepare consolidated financial statements,
the financial position and performance of the consolidated entity constituted
by it and the entities it is required to include in the consolidated financial
statements; and

	 	(h)	 	(solvency) there are no reasonable grounds to suspect that it is unable to pay
its debts as and when they become due and payable; and

14

 

	 	(i)	 	(not a trustee) unless stated in the Details, it does not enter into any
Transaction Document as trustee; and
	 
	 	(j)	 	(litigation) there is no pending or threatened proceeding affecting it or any
of its assets before a court, authority, commission or arbitrator in which a decision
against it (either alone or together with other decisions) is likely to have a Material
Adverse Effect; and
	 
	 	(k)	 	(Event of Default) no Event of Default or Potential Event of Default is
continuing; and
	 
	 	(l)	 	(default under law — Material Adverse Effect) it is not in breach of a law or
obligation affecting it or its assets in a way which has had, or is likely to have, a
Material Adverse Effect; and
	 
	 	(m)	 	(full disclosure) all information provided by it to the Bank (whether following
a request from the Bank or otherwise) and which is used by the Bank in its assessment
of the nature and amount of the risk undertaken by the Bank in entering into the
Transaction Documents, and doing anything in connection with them, is complete and
accurate as of the time such information is provided to the Bank; and
	 
	 	(n)	 	(no immunity) it has no immunity from the jurisdiction of a court or from legal
process; and
	 
	 	(o)	 	(residency) the Borrower is a company resident in Puerto Rico for taxation
purposes and is not resident for taxation purposes in any other jurisdiction.

	10.2	 	Repetition of representations and warranties
	 
	 	 	The representations and warranties in this clause 10 are taken to be also repeated (by
reference to the then current circumstances) on each Drawdown Date and (in the case of those
in clause 10.1(d), (g), (h), (n) and (o)) on each Interest Payment Date.
	 
	10.3	 	Reliance
	 
	 	 	Each Borrower acknowledges that the Bank has entered into the Transaction Documents in
reliance on the representations and warranties in this clause 10.
	 
	11	 	Undertakings
	 
	11.1	 	General undertakings
	 
	 	 	Each Borrower undertakes:

	 	(a)	 	(accounting records) to keep proper accounting records; and
	 
	 	(b)	 	(conduct of business) to conduct its business (including collecting debts owed
to it) in the ordinary course consistent with its practices as at the date of this
agreement; and

15

 

	 	(c)	 	(no cessation of business) not, without the Bank’s consent, (which shall not be
unreasonably withheld) significantly change the general character of any business it
conducts; and
	 
	 	(d)	 	(information) to give the Bank any document or other information that the Bank
reasonably requests from time to time; and
	 
	 	(e)	 	(status certificates) on request from the Bank, to give the Bank a certificate
signed by two of its Authorized Officers which states whether an Event of Default or
Potential Event of Default is continuing; and
	 
	 	(f)	 	(maintain authorizations) to obtain, renew on time and comply with the terms of
each authorization necessary for it to enter into the Transaction Documents to which it
is a party, to comply with its obligations and exercise its rights under them and to
allow them to be enforced.

	12	 	Default
	 
	12.1	 	Events of Default
	 
	 	 	Each of the following is an Event of Default:

	 	(a)	 	(non-payment — Transaction Document) a Borrower does not pay on time any amount
payable by it under any Transaction Document in the manner required under it; or
	 
	 	(b)	 	(cross default) any present or future monetary obligations of a Borrower for
amounts totaling more than $3,000,000 (or equivalent) are not satisfied on time (or at
the end of their period of grace) or become prematurely payable as a result of a
default of a Borrower.
	 
	 	 	 	(In this clause 12.1(b), a “monetary obligation” means a monetary obligation in
connection with:

	 	(i)	 	money borrowed or raised; or
	 
	 	(ii)	 	any hiring arrangement, redeemable preference share, letter of
credit or financial markets transaction (including a swap, option or futures
contract), performance bond or guarantee facility; or
	 
	 	(iii)	 	a guarantee or indemnity in connection with anything referred
to in clauses 12.1(b)(i) or 12.1(b)(ii)); or

	 	(c)	 	(enforcement against assets) distress is levied or a judgment, order or
Encumbrance is enforced, or becomes enforceable, against any property of a Borrower
having a value of more than $3,000,000 (or equivalent); or

16

 

	(d)	 	(incorrect representation or warranty) a representation or warranty made, or
taken by clause 10.2 to be repeated, by or for a Borrower in this agreement or by BSCH
in the Security Agreement, Pledge and Assignment is found to have been incorrect or
misleading when made or so taken to be repeated; or
	 
	(e)	 	(Insolvency) a Borrower or Banco Santander becomes Insolvent; or
	 
	(f)	 	(ceasing business) a Borrower or BSCH stops payment on any of its material
obligations, ceases to carry on its business or a material part of it, or threatens to
do either of those things except to reconstruct or amalgamate while solvent on terms
approved by the Bank; or
	 
	(g)	 	(voidable Transaction Document) a Transaction Document or a transaction in
connection with it is or becomes (or is claimed to be) wholly or partly void, voidable
or unenforceable or does not have (or is claimed not to have) the priority the Bank
intended it to have, in each case, as a result of events not due to the acts or
omissions of the Bank (“claimed” in this paragraph means claimed by a Borrower or any
of its Related Entities or anyone on behalf of any of them); or
	 
	(h)	 	(appointment of manager) a person is appointed under legislation to manage any
part of the affairs of a Borrower or BSCH; or
	 
	(i)	 	(Material Adverse Effect) an event occurs which has, or is likely to have (or a
series of events occur which, together, have, or are likely to have), a Material
Adverse Effect;
	 
	(j)	 	(collateral) the value of any cash collateral deposited with the Bank and
provided as security for the Facility under the Security Agreement, Pledge and
Assignment ceases to be at least equal in amount to any amount that may be required
under Section 23A of the Federal Reserve Act and Regulation W promulgated thereunder;
or
	 
	(k)	 	(non-compliance with other obligations) a Borrower or BSCH does not comply with
any other obligation under any Transaction Document and, if the non-compliance can be
remedied, does not remedy the non-compliance within ten days.

	12.2	 	Consequences of default
	 
	 	 	If an Event of Default is continuing, then the Bank may declare at any time by notice to the
Borrowers that:

	 	(a)	 	subject to clause 2.3, an amount equal to the Amount Owing is either:

	 	(i)	 	payable on demand; or
	 
	 	(ii)	 	immediately due for payment;

	 	(b)	 	the Bank’s obligations specified in the notice are terminated.

17

 

	 	 	The Bank may make either or both of these declarations. The making of either of them gives
immediate effect to its provisions.
	 
	12.3	 	Investigation of default
	 
	 	 	If the Bank reasonably believes that an Event of Default is, or may be, continuing, the Bank
may appoint a person to investigate this. Each Borrower agrees to co-operate with the
person and comply with every reasonable request they make. If there is or was an Event of
Default, the Borrowers agree to pay all Costs in connection with the investigation.
	 
	13	 	Costs and indemnities
	 
	13.1	 	What the Borrowers agree to pay
	 
	 	 	The Borrowers agree to pay or reimburse the Bank for:

	 	(a)	 	all its reasonable Costs in drafting and negotiating a Transaction Document;
and
	 
	 	(b)	 	enforcing a Transaction Document,
including, but not limited to, legal Costs.

	 	 	The Borrowers must pay all stamp duty in connection with a Transaction Document.
	 
	13.2	 	Indemnity
	 
	 	 	The Borrowers shall indemnify the Bank against any liability or loss arising from, and any
Costs incurred in connection with:

	 	(a)	 	financial accommodation requested under a Transaction Document not being
provided in accordance with the request for any reason except default of the Bank; or
	 
	 	(b)	 	financial accommodation under a Transaction Document being repaid, discharged
or made payable other than at its maturity or on an Interest Payment Date applicable to
it or as otherwise allowed under the terms of a Transaction Document; or
	 
	 	(c)	 	the Bank acting in connection with a Transaction Document in good faith on fax,
telephone, email or written instructions purporting to originate from the offices of a
Borrower or to be given by an Authorized Officer of a Borrower; or
	 
	 	(d)	 	an Event of Default; or
	 
	 	(e)	 	the Bank exercising or attempting to exercise a right or remedy in connection
with a Transaction Document after an Event of Default; or
	 
	 	(f)	 	any indemnity the Bank gives a controller or administrator of the Borrowers.

The Borrowers agree to pay amounts due under this indemnity on demand from the Bank.

18

 

	14	 	Interest on overdue amounts
	 
	14.1	 	Obligation to pay
	 
	 	 	If a Borrower does not pay any amount under this agreement on the due date for payment, the
relevant Borrower agrees to pay interest on any such amount at the Default Rate. The
interest accrues daily from (and including) the due date to (but excluding) the date of
actual payment and is calculated on actual days elapsed and a year of 360 days.
	 
	 	 	The relevant Borrower agrees to pay interest under this clause on demand from the Bank.
	 
	14.2	 	Compounding
	 
	 	 	To the extent permitted by applicable law, any interest payable under clause 14.1 which is
not paid when due for payment may be added to the overdue amount by the Bank at intervals
which the Bank determines from time to time or, if no determination is made, every 30 days.
Interest is payable on the increased overdue amount at the Default Rate in the manner set
out in clause 14.1.
	 
	14.3	 	Interest following judgment
	 
	 	 	If a liability becomes merged in a judgment, the relevant Borrower agrees to pay interest on
the amount of that liability as an independent obligation. This interest:

	 	(a)	 	accrues daily from (and including) the date the liability becomes due for
payment both before and after the judgment up to (but excluding) the date the liability
is paid; and
	 
	 	(b)	 	is calculated at the judgment rate or the Default Rate (whichever is higher).

	 	 	The relevant Borrower agrees to pay interest under this clause on demand from the Bank.
	 
	15	 	Application of payments
	 
	 	 	Subject to clause 2.3, the Bank may apply amounts paid by the Borrowers towards satisfaction
of the Borrowers’ obligations under the Transaction Documents in the manner it sees fit,
unless the Transaction Documents expressly provide otherwise. This appropriation overrides
any purported appropriation by a Borrower or any other person.
	 
	16	 	Dealing with interests
	 
	16.1	 	No dealing by Borrowers
	 
	 	 	The Borrowers may not assign or otherwise deal with their rights under any Transaction
Document or allow any interest in them to arise or be varied, in each case, without the
Bank’s consent.

19

 

	16.2	 	Dealings by Bank
	 
	 	 	The Bank may assign or otherwise deal with its rights under the Transaction Documents
(including by assignment or participation) without the consent of any person.
	 
	17	 	Notices and other communications
	 
	17.1	 	Form — all communications
	 
	 	 	Unless expressly stated otherwise in the Transaction Documents, all notices, certificates,
consents, approvals, waivers and other communications in connection with a Transaction
Document must be in writing, signed by the sender (if an individual) or an Authorized
Officer of the sender and marked for the attention of the person identified in the Details
or, if the recipient has notified otherwise, then marked for attention in the way last
notified.
	 
	17.2	 	Form — communications sent by email
	 
	 	 	Communications sent by email need not be marked for attention in the way stated in clause
17.1 (“Form — all communications”). However, the email must state the first and last name
of the sender.
	 
	 	 	Communications sent by email are taken to be signed by the named sender.
	 
	17.3	 	Delivery
	 
	 	 	Communications must be:

	 	(a)	 	Hand delivered at the address set out or referred to in the Details; or
	 
	 	(b)	 	sent by prepaid ordinary post (airmail, if appropriate) to the address set out
or referred to in the Details; or
	 
	 	(c)	 	sent by fax to the fax number set out or referred to in the Details; or
	 
	 	(d)	 	sent by email to the address set out or referred to in the Details.

	 	 	However, if the intended recipient has notified a changed address or fax number, then
communications must be to that address or number.
	 
	17.4	 	When effective
	 
	 	 	Communications take effect from the time they are received or taken to be received under
clause 17.5 (“When taken to be received”) (whichever happens first) unless a later time is
specified.
	 
	17.5	 	When taken to be received
	 
	 	 	Communications are taken to be received:

20

 

	 	(a)	 	if sent by post, three days after posting (or seven days after posting if sent
from one country to another); or
	 
	 	(b)	 	if sent by fax, at the time shown in the transmission report as the time that
the whole fax was sent; or
	 
	 	(c)	 	if sent by email:

	 	(i)	 	when the sender receives an automated message confirming
delivery; or
	 
	 	(ii)	 	four hours after the time sent (as recorded on the device from
which the sender sent the email) unless the sender receives an automated
message that the email has not been delivered,

whichever happens first.

	17.6	 	Receipt outside business hours
	 
	 	 	Despite clauses 17.4 (“When effective”) and 17.5 (“When taken to be received”), if
communications are received or taken to be received under clause 17.5 after 5.00 pm in the
place of receipt or on a non-Business Day, they are taken to be received at 9.00 am on the
next Business Day and take effect from that time unless a later time is specified.
	 
	17.7	 	Waiver of notice period
	 
	 	 	The Bank may waive a period of notice required to be given by a Borrower under this
agreement.
	 
	18	 	General
	 
	18.1	 	Application to Transaction Documents
	 
	 	 	If anything in this clause 18 (“General”) is inconsistent with a provision in another
Transaction Document, then the provision in the other Transaction Document prevails for the
purposes of that Transaction Document.
	 
	18.2	 	Prompt performance
	 
	 	 	Subject to clause 18.15 (“Time of the essence”):

	 	(a)	 	if a Transaction Document specifies when a Borrower agrees to perform an
obligation, the Borrower agrees to perform it by the time specified; and
	 
	 	(b)	 	the Borrowers agree to perform all other obligations promptly.

	18.3	 	Consents
	 
	 	 	The Borrowers agree to comply with all conditions in any consent the Bank gives in
connection with a Transaction Document.

21

 

	18.4	 	Certificates
	 
	 	 	The Bank may give the Borrowers a certificate about an amount payable or other matter in
connection with a Transaction Document. The certificate is sufficient evidence of the amount
or matter, unless it is proved to be incorrect.
	 
	18.5	 	Set-off
	 
	 	 	If an Event of Default is continuing, the Bank may, in its absolute discretion, set off any
amount owing by the Bank to a Borrower (whether or not due for payment) against any amount
due for payment by a Borrower to the Bank under a Transaction Document.
	 
	 	 	The Bank may do anything necessary to effect any set-off under this clause (including
varying the date for payment of any amount owing by the Bank to a Borrower and making
currency exchanges). This clause applies despite any other agreement between a Borrower and
the Bank.
	 
	18.6	 	Discretion in exercising rights
	 
	 	 	The Bank may exercise a right or remedy or give or refuse its consent under a Transaction
Document in any way it considers appropriate (including by imposing conditions).
	 
	18.7	 	Partial exercising of rights
	 
	 	 	If the Bank does not exercise a right or remedy under a Transaction Document fully or at a
given time, the Bank may still exercise it later.
	 
	18.8	 	No liability for loss
	 
	 	 	The Bank is not liable for loss caused by the exercise or attempted exercise of, failure to
exercise, or delay in exercising, a right or remedy under a Transaction Document.
	 
	18.9	 	Conflict of interest
	 
	 	 	The Bank’s rights and remedies under any Transaction Document may be exercised even if this
involves a conflict of duty or the Bank has a personal interest in their exercise.
	 
	18.10	 	Remedies cumulative
	 
	 	 	The rights and remedies of the Bank under any Transaction Document are in addition to other
rights and remedies given by law independently of the Transaction Document.
	 
	18.11	 	Indemnities
	 
	 	 	Any indemnity in a Transaction Document is a continuing obligation, independent of the
Borrowers’ other obligations under that Transaction Document and continues after the
Transaction Document ends. It is not necessary for the Bank to incur expense or make
payment before enforcing a right of indemnity under a Transaction Document.

22

 

	18.12	 	Rights and obligations are unaffected
	 
	 	 	Rights given to the Bank under a Transaction Document and the Borrowers’ liabilities under
it are not affected by anything which might otherwise affect them at law.
	 
	18.13	 	Inconsistent law
	 
	 	 	To the extent permitted by law, each Transaction Document prevails to the extent it is
inconsistent with any law.
	 
	18.14	 	Supervening legislation
	 
	 	 	Any present or future legislation which operates to vary the obligations of the Borrowers in
connection with a Transaction Document with the result that the Bank’s rights, powers or
remedies are adversely affected (including by way of delay or postponement) is excluded
except to the extent that its exclusion is prohibited or rendered ineffective by law.
	 
	18.15	 	Time of the essence
	 
	 	 	Time is of the essence in any Transaction Document in respect of an obligation of a Borrower
to pay money.
	 
	18.16	 	Variation and waiver
	 
	 	 	A provision of a Transaction Document, or right created under it, may not be waived or
varied except in writing signed by the party or parties to be bound.
	 
	18.17	 	Further steps
	 
	 	 	The Borrowers agree to do anything the Bank may request (such as obtaining consents, signing
and producing documents and getting documents completed and signed):

	 	(a)	 	to bind the Borrowers and any other person intended to be bound under the
Transaction Documents;
	 
	 	(b)	 	to show whether the Borrowers are complying with this agreement.
	 
	18.18	 	 	Counterparts
	 
	 	 	 	This agreement may consist of a number of copies, each signed by one or more parties to the
agreement. If so, the signed copies are treated as making up the one document.
	 
	18.19	 	 	Governing law
	 
	 	 	 	Each Transaction Document is governed by the laws of the Commonwealth of Puerto Rico.

EXECUTED as an agreement

23

 

Bridge Facility Agreement

Schedule 1 — Conditions precedent (clause 3.4)

Conditions to first drawdown

	•	 	Each item must be in form and substance satisfactory to the Bank.

	•	 	The Bank may also require other documents and information (see clause 3.5(f))

	•	 	Certification is to be by a director or secretary of the applicable Borrower, that the item
is true and complete as at a date no earlier than the date of this agreement.

	 	 	 	 	 	 	 
	 	 	Item	 	Form	 	Required for
	1

	 	Extract of minutes of a meeting of the
Borrowers’ board of directors which
evidences the resolutions:
	 	Certified copy
	 	Each Borrower
	 
	 	 	 	 	 	 
	 

	 	(a)      authorizing the
signing and
delivery of the Transaction
Documents to which the entity is a
party and the observance of
obligations under those
documents; and
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(b)      appointing
Authorized Officers of
the entity.
	 	 	 	 
	 
	 	 	 	 	 	 
	2

	 	Specimen signature of
	 	Certified copy
	 	Each Borrower
	 
	 	 	 	 	 	 
	 

	 	(a)      each Authorized
Officer of the
entity; and
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	(b)      each other
person who is
authorized to sign a Transaction
Document for the Borrowers.
	 	 	 	 
	 
	 	 	 	 	 	 
	3

	 	This agreement fully signed.
	 	Original
	 	Each Borrower
	 
	 	 	 	 	 	 
	4

	 	A certificate of deposit opened by
BSCH with the Bank in the aggregate
amount of the Facility to be provided
as
security for the Facility under the
Security Agreement, Pledge and
Assignment.
	 	N/A
	 	BSCH and Each
Borrower
	 
	 	 	 	 	 	 
	5

	 	The Security Agreement, Pledge and
Assignment fully signed.
	 	Original
	 	BSCH

Sch. 1 - 1 

 

Schedule 2 — Drawdown Notice (clause 3)

	To:  	 	Banco Santander Puerto Rico

207 Ponce de León Avenue

San Juan, Puerto Rico 00917
	 
	Attention:  	 	[•]

[Date]

Drawdown Notice — Bridge Facility Agreement between Santander BanCorp, Santander Financial
Services, Inc. and Banco Santander Puerto Rico, dated September 21, 2007 (“Bridge Facility
Agreement”)

Under clause 3.2 (“Requesting a drawdown”) of the Bridge Facility Agreement, the Borrower gives
notice as follows.1 

The Borrower wants to borrow under the Facility.

	•	 	The requested Drawdown Date is [       ]2.

	•	 	The amount of the proposed drawdown is US$[       ].

	•	 	The proposed drawdown is to be paid to:

	 	 	 
	Account number:

	 	[           ]
	Account name:

	 	[           ]
	Correspondent Bank:

	 	[           ]
	Swift:

	 	[           ]
	Beneficiary Bank:

	 	[           ]
	Swift:

	 	[           ]
	Beneficiary:

	 	[          ]

The Borrower represents and warrants that the representations and warranties in the Bridge Facility
Agreement are correct and not misleading on the date of this notice and that each will be correct
and not misleading on the Drawdown Date.

Clause 1 of the Bridge Facility Agreement applies to this notice as if it was fully set out in this
notice.

        
                 
                 
                 
                 
    

[Name of person] being

an Authorized Officer of

[Name of Borrower]

Instructions for completion

	1	 	All items must be completed.
	 
	2	 	Must be a Business Day within the Availability Period.

Sch. 2 - 1

 

Signature page

	 	 	 	 	 	 	 	 	 	 	 	 	 
	DATED: September 21, 2007
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	 	 	)	 	 	 	 	 	 	 
	SANTANDER BANCORP

	 	 	 	 	)	 	 	 	 	 	 	 
	 
	 	 	 	 	)	 	 	 	 	 	 	 
	/s/ José R. González

	 	 	 	 	)	 	 	 	 	/s/ María Calero	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	Signature

	 	 	 	 	)	 	 	 	 	Signature	 	 
	Name: José R. González

	 	 	 	 	)	 	 	 	 	Name: María Calero	 	 
	Title: President

	 	 	 	 	)	 	 	 	 	Title: CAO	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	 	 	)	 	 	 	 	 	 	 
	SANTANDER FINANCIAL

	 	 	 	 	)	 	 	 	 	 	 	 
	SERVICES, INC.

	 	 	 	 	)	 	 	 	 	 	 	 
	 
	 	 	 	 	)	 	 	 	 	 	 	 
	/s/ José R. González

	 	 	 	 	)	 	 	 	 	María Calero	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	Signature

	 	 	 	 	)	 	 	 	 	Signature	 	 
	Name: José R. González

	 	 	 	 	)	 	 	 	 	Name: María Calero	 	 
	Title: Chairman

	 	 	 	 	)	 	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	 	 	)	 	 	 	 	 	 	 
	BANCO SANTANDER PUERTO RICO

	 	 	 	 	)	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Carlos M. García

	 	 	 	 	)	 	 	 	 	/s/ Rafael S. Bonilla	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	Signature

	 	 	 	 	)	 	 	 	 	Signature	 	 
	Name: Carlos M. García

	 	 	 	 	)	 	 	 	 	Name: Rafael S. Bonilla	 	 
	Title: SEVP & COO

	 	 	 	 	)	 	 	 	 	Title: SVP

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