Document:

exv10w10

Exhibit 10.10

January 28, 2010

PERSONAL AND CONFIDENTIAL

Mr. Carlos A. Unanue

Goya de PR

PO Box 601467

Bayamόn, PR 00960-6067

Dear Mr. Unanue:

We are very pleased to welcome you to the Board of Directors (the “Board”) of Popular, Inc. (the
“Corporation”), and are writing to set forth the general terms of your compensation as a Director,
pursuant to resolutions adopted by the Board (without your participation) on July 14, 2004. These
terms are, of course, subject to future modification by the Board.

As compensation for your services, you will receive:

- An annual retainer fee (the “Annual Retainer”) of $5,445 for the period ending on the
day the 2010 annual meeting of shareholders of the Corporation is held and $20,000 for
each subsequent twelve month period that you are a Director or $25,000 if you are elected
Chairman of any Board committee;

- $1,000 for each meeting of the Board or of a Board committee that you attend (the
“Meeting Fee”). Attendance at meetings of Banco Popular de Puerto Rico (“BPPR”) will be
compensated accordingly; and

- A grant of $9,528 payable in Restricted Stock of Popular, Inc. (the “Restricted Stock”)
under the Popular, Inc. 2004 Omnibus Incentive Plan (the “Omnibus Plan”) for the period
ending on the day the 2010 annual meeting of shareholders of the Corporation is held and
an annual grant of $35,000 payable in Restricted Stock under the Omnibus Plan for each
subsequent twelve month period that you are a Director.

The Annual Retainer will be paid annually in advance, within the 30 days following the annual
Corporation’s shareholder meeting, in cash unless you elect to receive payment in Restricted Stock.
The Meeting Fee may be paid in cash on a per meeting basis or quarterly in arrears in Restricted
Stock. The number of shares of Restricted Stock to be delivered in payment of an Annual Retainer
and/or Meeting Fee shall be determined based on the per share closing price of the Corporation’s
common stock on the date payment is made and the amount of the Annual Retainer and/or Meeting Fee
owed you.

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If you elect to receive payment in the form of Restricted Stock, such shares shall be subject to
the terms of the Annual Retainer and/or Meeting Fee Restricted Stock Agreement (attached hereto).
If you elect to receive Restricted Stock you must return to us the attached Director Compensation
Election Form and the executed Annual Retainer and/or Meeting Fee Restricted Stock Agreement. If
you do not provide us with a completed election form prior to such date, the Annual Retainer will
be paid to you annually in advance in cash and the Meeting Fee will be paid in cash on a per
meeting basis. Once you have made an election to receive Restricted Stock, the election will be
applicable to all future payments of the Annual Retainer and/or Meeting Fee, unless you notify us
in writing of your desire to no longer receive Restricted Stock. In such case, your notice will
apply to compensation payable for the year following receipt of the notice.

If you do not currently elect to receive the Annual Retainer and/or the Meeting Fee in the form of
Restricted Stock, you may make such an election for future payments of either compensation element,
by sending us a written notice with respect to the Annual Retainer, at least 30 days prior to the
date of such year’s annual meeting of the Corporation’s shareholders for which the election would
be in effect and, with respect to the Meeting Fees, at least 30 days prior to Board of Director’s
meeting for which you want to commence receiving the Meeting Fee in the form of Restricted Stock.

An election to receive the Annual Retainer and/or Meeting Fee in the form of Restricted Stock will
result in deferral of taxation of those amounts until such later year as the restrictions lapse.

Dividends paid on your Restricted Stock will be reinvested in your name in the Popular, Inc.
Dividend Reinvestment Plan. The dividend will be subject to Puerto Rico income taxes in the year
paid by the Corporation at a special 10% rate.

Your grant of Restricted Stock is covered by a separate agreement attached hereto. We have
enclosed the following documents in connection with the foregoing:

	 	1.	 	Director Compensation Election Form,
	 
	 	2.	 	Annual Grant Restricted Stock Agreement,
	 
	 	3.	 	Annual Retainer and/or Meeting Fee Restricted Stock Agreement, and
	 
	 	4.	 	Omnibus Plan

Please complete and sign the Director Compensation Election Form and sign the Annual Grant
Restricted Stock Agreement where indicated. If you elect to receive payment of the Annual Retainer
and/or the Meeting Fee in Restricted Stock, please sign the Annual Retainer and/or Meeting Fee
Restricted Stock Agreement. Return all of the executed documents to Marie Reyes Rodriguez at the
Corporate Secretary’s Office. Please retain a copy of these documents for your records.

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Once more, thank you for joining the Board of Directors of Popular, Inc. We look forward to
working with you.

Cordially,

/s/
Richard L. Carriόn

Richard L. Carriόn

Chairman of the Board & CEO

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Annual grant 

Restricted Stock Agreement

     This Annual Grant Restricted Stock Agreement (“Agreement”) by and between Popular,
Inc. (the “Corporation”) and Carlos A. Unanue (“Director”) is entered pursuant to the meeting of
the Board of Directors of the Corporation held on the 14th day of July 2004, whereby
the Corporation in consideration of Director’s services as a member of the Board of Directors of
the Corporation and/or its wholly owned subsidiary, Banco Popular de Puerto Rico (“BPPR”), granted
to the Director a number of restricted shares of the Corporation’s Common Stock (the “Restricted
Stock”) subject to the terms and conditions hereinafter set forth and the terms and conditions of
the Popular, Inc. 2004 Omnibus Incentive Plan (the “Plan”), a copy of which is attached hereto as
Exhibit A. Capitalized terms not otherwise defined herein shall having the meaning ascribed them
in the Plan.

     1. Number of Shares. Pursuant to the terms of the Director’s Compensation letter
dated January 28, 2010, the Corporation has agreed to grant to the Director $9,528 worth of
Restricted Stock for the period ending on the day the 2010 annual meeting of the Corporation’s
shareholders is held and an annual grant of $35,000 for each subsequent year the Director is such
of the Corporation and/or BPPR, based on the per share closing price of the Corporation’s Common
Stock on the Grant Date. The Grant Date shall be the day the Restricted Stock is purchased for
the Director with respect to the period ending the day of the 2010 annual meeting of shareholders
of the Corporation and with respect to subsequent annual grants, within the 30 days following the
annual meeting of the Corporation’s shareholders. For all purposes the Grant Price shall be zero
($0).

     The Restricted Stock shall be subject to all the terms, conditions, and restrictions set
forth in this Agreement and the Plan. In the event any stock dividend, stock split,
recapitalization or other change affecting the outstanding common stock of the Corporation as a
class is effected without consideration, then any new, substituted or additional securities or
other property (including money paid other than as a regular cash dividend) that is by reason of
any such transaction distributed with respect to shares of Restricted Stock will be immediately
subject to the provisions of this Agreement in the same manner and to the same extent as the
Restricted Stock with respect to which such change was effected. Cash dividends paid on Restricted
Stock shall be reinvested in Common Stock through the Corporation’s Dividend Reinvestment Plan.

     2. Forfeiture and Transfer Restrictions. All Restricted Stock granted to Director
shall be issued and delivered on the Grant Date. In the event Director’s relationship with the
Corporation or BPPR, as applicable, is terminated for Cause (as defined in the Plan), or if
Director, Director’s legal representative, or other holder of the Restricted Stock attempts to
sell, exchange, transfer, pledge, or otherwise dispose of any Restricted Stock, all Restricted
Stock will be immediately forfeited without any further action by the Corporation.

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     Restricted Stock may not be assigned, transferred, pledged or otherwise disposed of in any
way other than by the Last Will and Testament of the Director or the laws of descent and
distribution, subject to the bylaws of the Corporation. Any Restricted Stock held by a beneficiary
shall be subject to the restrictions imposed on such Restricted Stock. Any such attempt at
assignment, transfer, pledge or other disposition shall be without effect.

     3. Securities Law Compliance. Notwithstanding anything to the contrary
contained herein, no shares under this Agreement may be granted unless the shares of Restricted
Stock issuable upon such grant are then registered under the Securities Act of 1933, as amended
(the “Securities Act”) or, if such shares of Restricted Stock are not then so registered, the
Corporation has determined that such grant and issuance would be exempt from the registration
requirements of the Securities Act. The grant of shares must also comply with other applicable laws
and regulations governing the grant, and no grant of shares will be permitted if the Corporation
determines that such purchase would not be in material compliance with such laws and regulations.

     4. Stock Legend. The Corporation and Director agree that all certificates
representing all shares of Restricted Stock that at any time are subject to the provisions of this
Agreement and the Plan will have endorsed upon them in bold-faced type a legend substantially in
the following form:

THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, ASSIGNED, TRANSFERRED,
ENCUMBERED OR IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF AN
ANNUAL GRANT RESTRICTED STOCK AGREEMENT BETWEEN THE CORPORATION AND THE INITIAL
HOLDER OF THE SHARES. THE ANNUAL GRANT RESTRICTED STOCK AGREEMENT MAY GRANT CERTAIN
PURCHASE OPTIONS TO THE CORPORATION, PROVIDES FOR FORFEITURE OF THE STOCK IN CERTAIN
CIRCUMSTANCES, AND IMPOSES RESTRICTIONS ON THE TRANSFER OF THESE SHARES. A COPY OF
THE ANNUAL GRANT RESTRICTED STOCK AGREEMENT IS ON DEPOSIT AT THE PRINCIPAL OFFICE OF
THE CORPORATION AND WILL BE FURNISHED BY THE CORPORATION TO THE REGISTERED HOLDER
HEREOF UPON WRITTEN REQUEST.

     5. Agreement not a Service Contract. This Agreement is not an employment or
service contract, and nothing in this Agreement nor the Plan shall be deemed to create in any way
whatsoever any obligation for the Director to continue his relationship with the Corporation or
BPPR, as applicable, or of the Corporation or BPPR, as applicable, to continue the relationship
with the Director.

     6. Section 83(b) Election. Director acknowledges that if he is
subject to taxation under the United States Internal Revenue Code of 1986, as amended (the “Code”),
under Section 83(b) of the Code, the difference between the Grant Price and its fair market value
at the time any forfeiture restrictions applicable to such Restricted Stock lapse is reportable as
ordinary income at that time. For this purpose, the term “forfeiture restrictions” includes the
forfeiture provisions, and restrictions described in Section 2 of this Agreement.

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     Notwithstanding the preceding, Director understands that he or she may elect to be taxed at
the time the Restricted Stock is acquired hereunder, rather than when and as such Restricted Stock
ceases to be subject to such forfeiture restrictions, by filing an election under Section 83(b) of
the Code with the Internal Revenue Service within 30 days after the Grant Date. If the Grant Price
equals the fair market value of the Restricted Stock on such date, or if it is likely that the
fair market value of the Restricted Stock at the time any forfeiture restrictions lapse will
exceed the Grant Price, the election may avoid adverse tax consequences in the future. A form for
making this election is attached as Exhibit B. Director understands that the failure to
make this filing within said 30 day period will result in the recognition of ordinary income by
Director (in the event the fair market value of the Restricted Stock increases after Grant Date)
as the forfeiture restrictions lapse. Director acknowledges that it is his or her sole
responsibility, and not the Corporation’s, to file a timely election under Section 83(b). Director
further acknowledges that the election under Section 83(b) is an election that must be made with
respect to each separate grant of Restricted Stock that is subject to this Agreement.

     7. Notices. Any notices provided for in this Agreement or the Plan shall be
given in writing and shall be deemed effectively given upon receipt or, in the case of notices
delivered by mail by the Corporation to the Director, five (5) days after deposit in the United
States mail, postage prepaid, addressed to the Director at the last address the Director provided
to the Corporation and/or BPPR. Notice to the Corporation and/or BPPR shall be given in writing and
shall be deemed effectively given upon receipt or, in the case of notices delivered by mail to the
Corporation and/or BPPR by the Director, five (5) days after deposit in the United States mail,
postage prepaid, addressed to Chief Legal Officer, Popular, Inc./Banco Popular de Puerto Rico,
Board of Directors (751), PO Box 362708, San Juan, Puerto Rico 00936-2708.

     8. Rights as a Shareholder. Except for the restrictions set forth in this
Agreement and the Plan and unless otherwise determined by the Corporation, the Director shall be
entitled to all of the rights of a shareholder with respect to the shares of Restricted Stock
awarded pursuant to this Agreement including the right to vote such shares of Restricted Stock and
to receive dividends and other distributions (if any) payable with respect to such shares.
Provided, however, that cash dividends paid on Restricted Stock shall be reinvested in Common Stock
through the Corporation’s Dividend Reinvestment Plan.

     9. Tax Withholding. The Corporation may withhold or cause to be withheld
from any Restricted Stock grant (or Director’s compensation) any Federal, Puerto Rico, state or
local taxes required by law to be withheld with respect to such Restricted Stock grant. By
acceptance of this Agreement, Director agrees to such deductions.

     10. Governing Law. All questions arising with respect to this Agreement and the provisions of
the Plan shall be determined by application of the laws of the Commonwealth of Puerto Rico except
to the extent such governing law is preempted by Federal law. The obligation of the Corporation
to grant and deliver Restricted Stock under this Agreement is subject to applicable laws and to the
approval of any governmental authority required in connection with the authorization, issuance,
sale, or delivery of such Restricted Stock.

     11. Severability. If any provision of this Agreement is held to be illegal
or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions
of the

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Agreement, but such provision shall be fully severable and the Agreement shall be construed and
enforced as if the illegal or invalid provision had never been included in the Agreement.

     12. Successors. This Agreement shall be binding upon the Director, his legal
representatives, heirs, legatees, distributees, and shall be binding upon the Corporation and its
successors and assigns.

     IN WITNESS WHEREOF, the parties hereto have entered into this Agreement this 1ST
day of February 2010.

	 	 	 	 	 	 	 
	 	 	POPULAR, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David H. Chafey, Jr.	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:
	 	David H. Chafey, Jr.	 	 
	 

	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 
	 	 	DIRECTOR:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Carlos A. Unanue	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Carlos A. Unanue	 	 

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Annual Retainer and/or Meeting Fee 

Restricted Stock Agreement

     This Annual Retainer and/or Meeting Fee Restricted Stock Agreement (“Agreement”) by
and between Popular, Inc. (the “Corporation”) and Carlos A. Unanue (“Director”) is entered
pursuant to the meeting of the Board of Directors of the Corporation held the 14th day
of July 2004, whereby the Corporation in consideration of Director’s services as a member of the
Board of Directors of the Corporation granted to the Director certain compensation for his
services as such and Director elected to receive some or all of such compensation in a number of
restricted shares of the Corporation’s Common Stock (the “Restricted Stock”), subject to the terms
and conditions hereinafter set forth and the terms and conditions of the Popular, Inc. 2004
Omnibus Incentive Plan (the “Plan”), a copy of which is attached hereto as Exhibit A. Capitalized
terms not otherwise defined herein shall having the meaning ascribed them in the Plan.

	1.	 	Number of Shares. Pursuant to the terms of the Director’s Compensation letter
dated January 28, 2010 (the “Compensation Letter”), the Corporation and/or BPPR has agreed to
pay the Director certain compensation and the Director has elected to receive such
compensation in the form of Restricted Stock. The number of shares of Restricted Stock shall
be based on the per share closing price of the Corporation’s Common Stock on the Grant Date
and the total amount of compensation owed to the Director on the Grant Date. The Grant Date
shall be the day the Restricted Stock is purchased for the Director with respect to the period
ending the day the 2010 annual meeting of shareholders of the Corporation and with respect to
subsequent annual grants within the 30 days following the date the compensation is payable to
the Director pursuant to the Compensation Letter. For all purposes the Grant Price shall be
zero ($0).
	 
	 	 	The Restricted Stock shall be subject to all the terms, conditions, and restrictions set forth
in this Agreement and the Plan. In the event any stock dividend, stock split, recapitalization
or other change affecting the outstanding common stock of the Corporation as a class is
effected without consideration, then any new, substituted or additional securities or other
property (including money paid other than as a regular cash dividend) that is by reason of any
such transaction distributed with respect to shares of Restricted Stock will be immediately
subject to the provisions of this Agreement in the same manner and to the same extent as the
Restricted Stock with respect to which such change was effected. Cash dividends paid on
Restricted Stock shall be reinvested in Common Stock through the Corporation’s Dividend
Reinvestment Plan.
	 
	2.	 	Forfeiture and Transfer Restrictions. All Restricted Stock granted to Director shall
be issued and delivered on the Grant Date. In the event Director’s relationship with the
Corporation or BPPR, as applicable, is terminated for Cause (as defined in the Plan), or if
Director, Director’s legal representative, or other holder of the Restricted Stock attempts to

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	 	 	sell, exchange, transfer, pledge, or otherwise dispose of any Restricted Stock, all Restricted
Stock will be immediately forfeited without any further action by the Corporation.

	 	 	Restricted Stock may not be assigned, transferred, pledged or otherwise disposed of in any way
other than by the Last Will and Testament of the Director or the laws of descent and
distribution, subject to the bylaws of the Corporation. Any Restricted Stock held by a
beneficiary shall be subject to the restrictions imposed on such Restricted Stock. Any such
attempt at assignment, transfer, pledge or other disposition shall be without effect.
	 
	3.	 	Securities Law Compliance. Notwithstanding anything to the contrary contained
herein, no shares under this Agreement may be granted unless the shares of Restricted Stock
issuable upon such grant are then registered under the Securities Act of 1933, as amended (the
“Securities Act”) or, if such shares of Restricted Stock are not then so registered, the
Corporation has determined that such grant and issuance would be exempt from the registration
requirements of the Securities Act. The grant of shares must also comply with other
applicable laws and regulations governing the grant, and no grant of shares will be permitted
if the Corporation determines that such purchase would not be in material compliance with such
laws and regulations.
	 
	4.	 	Stock Legend. The Corporation and Director agree that all certificates representing all
shares of Restricted Stock that at any time are subject to the provisions of this Agreement
and the Plan will have endorsed upon them in bold-faced type a legend substantially in the
following form:
	 
	 	 	THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, ASSIGNED, TRANSFERRED,
ENCUMBERED OR IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF AN
ANNUAL RETAINER AND/OR MEETING FEE RESTRICTED STOCK AGREEMENT BETWEEN THE
CORPORATION AND THE INITIAL HOLDER OF THE SHARES. THE ANNUAL RETAINER AND/OR MEETING
FEE RESTRICTED STOCK AGREEMENT MAY GRANT CERTAIN PURCHASE OPTIONS TO THE
CORPORATION, PROVIDES FOR FORFEITURE OF THE STOCK IN CERTAIN CIRCUMSTANCES, AND
IMPOSES RESTRICTIONS ON THE TRANSFER OF THESE SHARES. A COPY OF THE ANNUAL RETAINER
AND/OR MEETING FEE RESTRICTED STOCK AGREEMENT IS ON DEPOSIT AT THE PRINCIPAL OFFICE
OF THE CORPORATION AND WILL BE FURNISHED BY THE CORPORATION TO THE REGISTERED HOLDER
HEREOF UPON WRITTEN REQUEST.

	 
	5.	 	Agreement not a Service Contract. This Agreement is not an employment or
service contract, and nothing in this Agreement nor the Plan shall be deemed to create in
any way whatsoever any obligation for the Director to continue his relationship with the
Corporation or BPPR, as applicable, or of the Corporation or BPPR, as applicable, to
continue the relationship with the Director.

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	6.	 	Section 83(b) Election. Director acknowledges that if he is subject to taxation
under the United States Internal Revenue Code of 1986, as amended (the “Code”), under Section
83(b) of the Code, the difference between the Grant Price and its fair market value at the time
any forfeiture restrictions applicable to such Restricted Stock lapse is reportable as ordinary
income at that time. For this purpose, the term “forfeiture restrictions” includes the
forfeiture provisions, and restrictions described in Section 2 of this Agreement.
	 
	 	 	Notwithstanding the preceding, Director understands that he or she may elect to be taxed at the
time the Restricted Stock is acquired hereunder, rather than when and as such Restricted Stock
ceases to be subject to such forfeiture restrictions, by filing an election under Section 83(b)
of the Code with the Internal Revenue Service within 30 days after the Grant Date. If the Grant
Price equals the fair market value of the Restricted Stock on such date, or if it is likely that
the fair market value of the Restricted Stock at the time any forfeiture restrictions lapse will
exceed the Grant Price, the election may avoid adverse tax consequences in the future. A form
for making this election is attached as Exhibit B. Director understands that the failure
to make this filing within said 30 day period will result in the recognition of ordinary income
by Director (in the event the fair market value of the Restricted Stock increases after Grant
Date) as the forfeiture restrictions lapse. Director acknowledges that it is his or her sole
responsibility, and not the Corporation’s, to file a timely election under Section 83(b).
Director further acknowledges that the election under Section 83(b) is an election that must be
made with respect to each separate grant of Restricted Stock that is subject to this Agreement.
	 
	7.	 	Notices. Any notices provided for in this Agreement or the Plan shall be given
in writing and shall be deemed effectively given upon receipt or, in the case of notices
delivered by mail by the Corporation to the Director, five (5) days after deposit in the
United States mail, postage prepaid, addressed to the Director at the last address the
Director provided to the Corporation and/or BPPR. Notice to the Corporation and/or BPPR shall
be given in writing and shall be deemed effectively given upon receipt or, in the case of
notices delivered by mail to the Corporation and/or BPPR by the Director, five (5) days after
deposit in the United States mail, postage prepaid, addressed to Chief Legal Officer, Popular,
Inc./Banco Popular de Puerto Rico, Board of Directors (751), PO Box 362708, San Juan, Puerto
Rico 00936- 2708.
	 
	8.	 	Rights as a Shareholder. Except for the restrictions set forth in this
Agreement and the Plan and unless otherwise determined by the Corporation, the Director shall
be entitled to all of the rights of a shareholder with respect to the shares of Restricted
Stock awarded pursuant to this Agreement including the right to vote such shares of Restricted
Stock and to receive dividends and other distributions (if any) payable with respect to such
shares. Provided, however, that cash dividends paid on Restricted Stock shall be reinvested
in Common Stock through the Corporation’s Dividend Reinvestment Plan.
	 
	9.	 	Tax Withholding. The Corporation may withhold or cause to be withheld from
any Restricted Stock grant (or Director’s compensation) any Federal, Puerto Rico, state or
local taxes required by law to be withheld with respect to such Restricted Stock grant. By
acceptance of this Agreement, Director agrees to such deductions.

10

 

	10.	 	Governing Law. All questions arising with respect to this Agreement and
the provisions of the Plan shall be determined by application of the laws of the Commonwealth
of Puerto Rico except to the extent such governing law is preempted by Federal law. The
obligation of the Corporation to grant and deliver Restricted Stock under this Agreement is
subject to applicable laws and to the approval of any governmental authority required in
connection with the authorization, issuance, sale, or delivery of such Restricted Stock.
	 
	11.	 	Severability. If any provision of this Agreement is held to be illegal or
invalid for any reason, the illegality or invalidity shall not affect the remaining provisions
of the Agreement, but such provision shall be fully severable and the Agreement shall be
construed and enforced as if the illegal or invalid provision had never been included in the
Agreement.
	 
	12.	 	Successors. This Agreement shall be binding upon the Director,
his legal representatives, heirs, legatees, distributees, and shall be binding upon the
Corporation and its successors and assigns.

     IN WITNESS WHEREOF, the parties hereto have entered into this Agreement this 1st
day of February 2010.

	 	 	 	 	 	 	 
	 	 	POPULAR, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David H. Chafey, Jr.	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:
	 	David H. Chafey, Jr.	 	 
	 

	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 
	 	 	DIRECTOR:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Carlos A. Unanue	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Carlos A. Unanue	 	 

11exv10w97

Exhibit 10.97

Power Facility Construction Application Agreement

This Power Facility Construction Application Agreement (the “Agreement”) is entered into as of
October 29, 2009 (“Effective Date”) in the city of Shanghai, by and between SHANGHAI KAI
HONG TECHNOLOGY CO., LTD. (hereinafter referred to as “DSH”) with its registered office at No.1
Lane 18 San Zhuang Road, Songjiang Export Processing Zone, Shanghai, P.R.China and SHANGHAI YUAN
HAO ELECTRONIC CO., LTD. (hereinafter referred to as “Yuan Hao”) with its registered office at No.8
Lane 18 San Zhuang Road, Songjiang Export Processing Zone, Shanghai, P.R.China. DSH and Yuan Hao
are collectively referred to as the “Parties” and individually as a “Party”.

RECITALS

WHEREAS, DSH currently leases a factory building owned by Yuan Hao and operates within the same
district as Yuan Hao; therefore, DSH needs to satisfy its own need to continue the production of
products in the factory building; and

WHEREAS, in accordance with related regulations on facility building’s power system, DSH requests
Yuan Hao to construct a power line of 400 millimeter in diameter to deliver power from Hua-Hung
power station to a power facility with the designed capacity of 6,300 KVA (the “Power Facility”).

NOW THEREFORE, in consideration of the premises and of the mutual covenants contained in this
Agreement and based on the Contract Law of the People’s Republic of China, the Parties agree as
follows:

1. Yuan Hao agree with DSH’s request to timely submit, under Yuan Hao’s name, the Power Facility’s
design plan documents generated from the Power Transformer and related agency to the power company
for its approval and in accordance with power company’s regulations.

2. Yuan Hao agrees, upon receiving the response from the government and related agencies on the
electricity usage application and obtaining the approval on Power Facility construction and related
items, to timely apply for the procedures to construction of the Power Facility with the power
company under Yuan Hao’s name and provide related application documents in accordance with power
company’s regulations

3. Yuan Hao agrees, upon the completion of the construction of the Power Facility, to provide such
Power Facility to DSH for DSH’s exclusive use with 3,200 KVA as the initial power capacity of the
Power Facility. Within three

 

 

(3) months after the power capacity of the Power Facility reaching 6,300 KVA, Yuan Hao shall
unconditionally change the name of the owner of the Power Facility to DSH and transfer the full
ownership of the Power Facility to DSH. Yuan Hao agrees, upon the approval of the power company
and under the prior conditions that DSH provides for all the necessary facilities and pays for all
of the necessary costs for construction of the Power Facility, to timely request the power company
to commence the construction for providing electricity in accordance with power company’s
regulations and duly pay for such construction to the power company.

4. If it is necessary to make other applications and/or procedures during the Power Facility
application, construction, change of name procedures, or transfer of ownership procedures, Yuan Hao
agrees, in accordance with the demand of DSH, to timely complete all of the related applications
and/or procedures. If due to any reasons not caused by Yuan Hao that the Power Facility’s change
of name or transfer of ownership procedures cannot be completed, the Power Facility shall still be
used solely and exclusively by DSH, and DSH shall still have the ownership of the Power Facility.
Yuan Hao has no right to transfer or lease the Power Facility to a third party, and Yuan Hao has
the responsibility to protect the completeness of the Power Facility. If the issues of unable to
change the name or transfer the ownership of the Power Facility disappeared, Yuan Hao shall
immediately apply for the change of name and the transfer of ownership of the Power Facility as
well as other related procedures.

5. On the total cost of the construction of the Power Facility and the method of payment, Yuan Hao
shall provide detailed pricing report and, upon DSH’s review and approval, confirm such pricing
report by signing another agreement with DSH.

6. Both Parties agree to sign the agreement on the total cost of the construction of the Power
Facility and the method of payment within a month after the government or related government
agencies approved the construction of the Power Facility.

7. During the process of the Power Facility application, construction, change of name procedures,
or transfer of ownership procedures, DSH agrees to provide all the necessary related assistance and
cover all the related expenses to Yuan Hao as well as provide all the related facilities in
accordance with Yuan Hao’s demand.

8. DSH agrees that it shall pay for all the power usage fees and other related expenses generated
upon the operation of the Power Facility.

9. If there is any change to the management of Yuan Hao, Yuan Hao must immediately notify DSH and
agree to keep the effectiveness of this Agreement as well as DSH’s exclusively right to use the
Power Facility and DSH’s full ownership of the Power Facility.

 

 

10. Force Majeure

10.1. The definition of Force Majeure

Force Majeure shall mean any event which arises after the Effective Date that is beyond the control
of the Parties, and is unforeseen, unavoidable and insurmountable, and which prevents total or
partial performance by either Party. Such events shall include earthquakes, typhoons, flood, fire,
war, acts of government or public agencies, strikes and ay other event which cannot be foreseen,
prevented and controlled, including events which are recognized as Force Majeure in general
international commercial practice.

10.2 Consequences of Force Majeure

a. If an event of Force Majeure occurs, the contractual obligation of a Party affected by such an
event shall be suspended during the period of delay and the time for performing such obligation
shall be extended, without penalty, for a period equal to such suspension.

b. The Party claiming Force Majeure shall give prompt notice to the other Party in writing and
shall furnish, within fifteen (15) days thereafter, sufficient proof of the occurrence and expected
duration of such Force Majeure. The Party claiming Force Majeure shall also use all reasonable
efforts to mitigate or eliminate the effects of the Force Majeure.

c. If an event of Force Majeure occurs, the Parties shall immediately consult with each other in
order to find an equitable solution and shall use all reasonable efforts to minimize the
consequences of such Force Majeure.

11. Effective Date of the Agreement

The Agreement shall become effective after the legal representatives or authorized representatives
of both Parties affix their signatures and company seals on this Agreement.

12. Language of the Agreement

This Agreement is written in Chinese and English. Both the Chinese and the English versions of the
Agreement have the same effectiveness, but if there is any discrepancy between both versions of the
Agreement, the Chinese version of the Agreement shall be the authority and the determinative
version to resolve such discrepancy.

13. Settlement of Dispute

 

 

13.1 Friendly consultations

a. In the event of any dispute, difference, controversy or claim arising out of or related to the
Agreement, including, but not limited to, any breach, termination or validity of the Agreement,
(the “Dispute”) then upon one Party giving the other Party notice in writing of the Dispute (the
“Notice of Dispute”), the Parties shall attempt to resolve such Dispute through friendly
consultation.

b. If the Dispute has not been resolved through friendly consultations with thirty (30) days from
the Notice of Dispute, the Dispute shall be resolved by arbitration in accordance with Article 13.2
of this Agreement. Such arbitration may be initiated by either Party.

13.2 Arbitration

The arbitration shall be conducted by Shanghai Arbitration Commission in Shanghai, China in
accordance with its procedure and rules. The arbitration award shall be final and binding on the
Parties. The costs of arbitration shall be borne by the losing Party except as may be otherwise
determined by the arbitration tribunal.

13.3. Jurisdiction of the court

If both Parties have any Dispute on the Agreement and unable to resolve such Dispute through
negotiation as well as unable to resolve such Dispute through arbitration, the Dispute shall be
forwarded to the court that has the jurisdiction over the Dispute for determination.

13.4 Continuance of performance

Except for the matter in Dispute, the Parties shall continue to perform their respective
obligations under the Agreement during any friendly consultations or any arbitration pursuant to
this Article 13.

13.5 Separability

The provisions of this Article 13 shall be separable from the other terms of the Agreement.
Neither the terminated nor the invalidity of the Agreement shall affect the validity of the
provisions of this Article 13.

14. Applicable Law

The validity, interpretation and implementation of this Agreement and the settlement of Disputes
shall be governed by relevant laws of the People’s Republic of China and regulations that are
officially promulgated and publicly available.

15. Compliance with the Foreign Corrupt Practices Act

 

 

15.1 Yuan Hao acknowledges that DSH is a corporation with substantial presence and affiliation in
the United States and, as such, is subject to the provisions of the Foreign Corrupt Practices Act
of 1977 of the United States of America, 15 U.S.C. §§ 78dd-1, et seq., which prohibits the making
of corrupt payments (the “FCPA”). Under the FCPA, it is unlawful to pay or to offer to pay anything
of value to foreign government officials, or employees, or political parties or candidates, or to
persons or entities who will offer or give such payments to any of the foregoing in order to obtain
or retain business or to secure an improper commercial advantage.

15.2 Yuan Hao further acknowledges that it is familiar with the provisions of the FCPA and hereby
agrees that Yuan Hao shall take or permit no action which will either constitute a violation under,
or cause DSH to be in violation of, the provisions of the FCPA.

16. Miscellaneous

16.1. This Agreement shall be signed in two copies, and both copies are equally valid under the
law. Either Party shall retain a copy of the signed Agreement.

16.2 The effective of this Agreement under the law and each article in this Agreement can be
separated. If any article in this Agreement is determined to be invalid due to any reason, such
invalidity of any article in this Agreement shall not affect the validity of any other articles of
this Agreement.

16.3 Any amendment to this Agreement shall be in writing and duly signed by both Parties. Such
amendment shall constitute a part of the entire Agreement.

16.4 Both Parties acknowledge that they are aware of their respective rights, obligations and
liabilities and will perform their obligations under this Agreement in accordance with the
provisions of the Agreement. If one Party violates this Agreement, the other Party shall be
entitled to claim damages in accordance with the Agreement.

16.5 Any notice or written communication requited or permitted by this Agreement shall be made in
writing in Chinese and English and sent by courier service. The date of receipt of a notice or
communication shall be deemed to be seven (7) days after the letter is deposited with the courier
service provided the deposit is evidenced by a confirmation receipt. All notice and communications
shall be sent to the appropriate address set forth below, until the same is changed by notice given
in writing to the other Party.

To: DSH

Address: No.1 Lane 18 San Zhuang Road, Songjiang Export Processing Zone, Shanghai, P.R.China

Attn.: Shanghai Kai Hong Technology Co., Ltd.

 

 

To: Yuan Hao

Address: No.8 Lane 18 San Zhuang Road, Songjiang Export Processing Zone, Shanghai, P.R.China

Attn.: Shanghai Yuan Hao Electronic Co., Ltd.

16.6 This Agreement comprises the entire understanding between the Parties with respect to its
subject matters and supersedes any previous or contemporaneous communications, representations, or
agreements, whether oral or written. For purposes of construction, this Agreement will be deemed to
have been drafted by both Parties. No modification of this Agreement will be binding on either
Party unless in writing and signed by an authorized representative of each Party.

	 	 	 	 	 	 	 	 	 	 	 
	Shanghai Kai Hong Technology Co., Ltd.	 	 
	 	Shanghai Yuan Hao Electronic Co., Ltd.	 	 

	 

	 	 
	 	 
	 	 
	 	 
	 	 

	By

	 	 

	 	 
	 	By

	 	 

	 	 

	Authorized Representative	 	 
	 	Authorized Representative	 	 

	Date:

	 	 
	 	 
	 	Date:

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