Document:

Exhibit

Exhibit 10.1

FIFTH LOAN MODIFICATION AGREEMENT
This Fifth Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of March 29, 2017, by and between SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 8705 SW Nimbus, Suite 240, Beaverton, Oregon 97008  (“Bank”) and JIVE SOFTWARE, INC., a Delaware corporation, with its principal place of business at 915 SW Stark Street, Suite 400, Portland, Oregon 97205 (“Borrower”).
1.DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS.  Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan arrangement dated as of May 23, 2012, evidenced by, among other documents, a certain Second Amended and Restated Loan and Security Agreement dated as of May 23, 2012, between Borrower and Bank, as amended by a certain First Loan Modification Agreement dated as of April 26, 2013, as amended by a certain Second Loan Modification Agreement dated as of February 18, 2014, and as further amended by a certain Third Loan Modification Agreement dated as of March 31, 2015, and as further amended by a certain Fourth Amendment to Loan and Security Agreement dated as of March 29, 2016 (as amended, the “Loan Agreement”).  Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement.
2.    DESCRIPTION OF COLLATERAL.  Repayment of the Obligations is secured by, among other property, the Collateral (together with any other collateral security granted to Bank, the “Security Documents”).  Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”.
3.    DESCRIPTION OF CHANGE IN TERMS.
		
	A.
	Modifications to Loan Agreement.  

		
	1
	The Loan Agreement shall be amended by deleting the following text, appearing in Section 6.7(a) thereof:

“(D) ($25,000,000.00) for each of the twelve-month periods ending on the last day of the fiscal quarters ending December 31, 2015, March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016.  With respect to any period ending after December 31, 2016, the levels of Modified EBITDA shall be mutually agreed upon by Bank and Borrower (which agreement, with respect to any such levels for a given calendar year, shall be set forth in a written amendment to this Agreement on or before March 31st of such calendar year) based upon, among other factors and information that Bank reasonably requires, Borrower’s annual operating budget, business plan and projections with respect to the applicable period, and Borrower shall provide Bank with copies of such annual operating budgets, business plans and projections when reasonably requested by Bank; and”
and inserting in lieu thereof the following:
“(D) (i) ($25,000,000.00) for each of the twelve-month periods ending on the last day of the fiscal quarters ending December 31, 2015, March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016 and (ii) ($10,000,000.00) for the twelve (12) month periods ending on the last day of the fiscal quarter ending March 31, 2017, and as of the last day of each fiscal quarter thereafter.”
		
	2
	The Loan Agreement shall be amended by deleting the following definitions appearing in Section 13.1 thereof:

“    “LIBOR” means, for any Interest Rate Determination Date with respect to an Interest Period for any Credit Extension to be made, continued as or converted into a LIBOR Credit Extension, the rate of interest per annum determined by Bank to be the per annum rate of interest at which deposits in Dollars are offered to Bank in the London interbank market (rounded upward, if necessary, to the nearest 1/10,000th of one percent (0.0001%)) in which Bank customarily participates at 11:00 a.m. (local time in such interbank market) two (2) Business Days prior to the first day of such Interest Period for a period approximately equal to such Interest Period and in an amount approximately equal to the amount of such Credit Extension.”
“    “Prime Rate” is, with respect to any day, the “Prime Rate” as quoted in the Wall Street Journal print edition on such day (or, if such day is not a day on which the Wall Street Journal is published, the immediately preceding day on which the Wall Street Journal was published).”
“    “Unused Revolving Line Margin” is 0.35%, provided that at such times that Borrower maintains an Adjusted Quick Ratio of greater than or equal to 2.75 to 1.00, the Unused Revolving Line Margin shall be 0.30%.  Any change in the Unused Revolving Line Margin due to a change in the Adjusted Quick Ratio shall take effect on the first (1st) calendar day of the month following the Bank’s receipt of Borrower’s financial statements for which the Adjusted Quick Ratio was calculated.
and inserting in lieu thereof the following:
“    “LIBOR” means, for any Interest Rate Determination Date with respect to an Interest Period for any Credit Extension to be made, continued as or converted into a LIBOR Credit Extension, the rate of interest per annum determined by Bank to be the per annum rate of interest at which deposits in Dollars are offered to Bank in the London interbank market (rounded upward, if necessary, to the nearest 1/10,000th of one percent (0.0001%)) in which Bank customarily participates at 11:00 a.m. (local time in such interbank market) two (2) Business Days prior to the first day of such Interest Period for a period approximately equal to such Interest Period and in an amount approximately equal to the amount of such Credit Extension; provided that, in the event such rate of interest is less than zero, such rate shall be deemed to be zero for purposes of this Agreement.”
“    “Prime Rate” is the rate of interest per annum from time to time published in the money rates section of The Wall Street Journal or any successor publication thereto as the “prime rate” then in effect; provided that, in the event such rate of interest is less than zero, such rate shall be deemed to be zero for purposes of this Agreement and provided further that if such rate of interest, as set forth from time to time in the money rates section of The Wall Street Journal, becomes unavailable for any reason as determined by Bank, the “Prime Rate” shall mean the rate of interest per annum announced by Bank as its prime rate in effect at its principal office in the State of California (such Bank announced Prime Rate not being intended to be the lowest rate of interest charged by Bank in connection with extensions of credit to debtors).
“    “Unused Revolving Line Margin” is 0.20%.”
		
	3
	Effective as of May 23, 2017, the Loan Agreement shall be amended by deleting the following definition appearing in Section 13.1 thereof:

“    “Revolving Line Maturity Date” is May 23, 2017.”

and inserting in lieu thereof the following:
“    “Revolving Line Maturity Date” is May 22, 2018.”
		
	4
	The Loan Agreement shall be amended by deleting the following text from the definition of “Permitted Distributions” appearing in Section 13.1 thereof:

“    (a)    purchases of capital stock from former employees, consultants and directors pursuant to repurchase agreements or other similar agreements in an aggregate amount not to exceed Five Hundred Thousand Dollars ($500,000.00) in any fiscal year, provided that at the time of any such purchase, and after giving effect to any such purchase, no Event of Default has occurred and is continuing;”
and inserting in lieu thereof the following:
“    (a)    purchases of capital stock from former employees, stockholders, consultants and directors pursuant to repurchase agreements or other similar agreements in an aggregate amount not to exceed Fifty Million Dollars ($50,000,000.00) in any twelve (12) month period, provided that at the time of any such purchase, and after giving effect to any such purchase: (i) Borrower is in compliance on a Pro Forma Basis with all covenants in this Agreement, (ii) Borrower maintains at least Fifty Million Dollars ($50,000,000.00) in unrestricted and unencumbered (except for the encumbrance in favor of Bank consisting of the general security interest granted hereunder) cash with Bank and Bank’s Affiliates and/or a third party so long as a Control Agreement satisfactory to Bank has been executed and delivered with respect to any non-Bank account containing such funds both before and after giving effect to such purchase of capital stock, and (iii) no Event of Default has occurred and is continuing;”
		
	5
	The Loan Agreement shall be amended by deleting the Compliance Certificate attached as Exhibit D thereto and inserting in lieu thereof the Compliance Certificate attached as Schedule 1 hereto.

4.    FEES AND EXPENSES.  Borrower shall pay to Bank a fully-earned, non-refundable Revolving Line commitment fee of Twenty Thousand Dollars ($20,000.00) on the date hereof.  Borrower shall also reimburse Bank for all documented reasonable legal fees and expenses incurred in connection with this amendment to the Existing Loan Documents.
5.    UPDATED PERFECTION CERTIFICATE.  Borrower has delivered an updated Perfection Certificate in connection with this Loan Modification Agreement dated as of the date hereof (the “Updated Perfection Certificate”), which Updated Perfection Certificate shall supersede in all respects that certain Perfection Certificate dated as of February 8. 2014.  Borrower agrees that all references in the Loan Agreement to “Perfection Certificate” shall hereinafter be deemed to be a reference to the Updated Perfection Certificate.
6.    CONSISTENT CHANGES.  The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above.
7.    RATIFICATION OF LOAN DOCUMENTS.  Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all security or other collateral granted to Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations.
8.    NO DEFENSES OF BORROWER.  Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and that if Borrower now 

has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder.
9.    CONTINUING VALIDITY.  Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents.  Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and effect.  Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations.  Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations.  It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by Bank in writing.  No maker will be released by virtue of this Loan Modification Agreement.
10.    COUNTERSIGNATURE.  This Loan Modification Agreement shall become effective only when it shall have been executed by Borrower and Bank.
[The remainder of this page is intentionally left blank]

SCHEDULE 1
EXHIBIT D

COMPLIANCE CERTIFICATE

Date:                  
TO:    SILICON VALLEY BANK    
FROM:  JIVE SOFTWARE, INC.
The undersigned authorized officer of JIVE SOFTWARE, INC. (“Borrower”) certifies that under the terms and conditions of the Second Amended and Restated Loan and Security Agreement between Borrower and Bank (the “Agreement”):
(1) Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below; (2) there are no Events of Default except as noted below; (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; (4) Borrower, and each of its Subsidiaries, have timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.8 of the Agreement; and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Bank.  
Attached are the required documents supporting the certification.  The undersigned certifies that the attached financial statements are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes.  The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered.  Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement.

	
			
	Please indicate compliance status by circling Yes/No under “Complies” column.

	 

	Reporting Covenant
	Required
	Complies

	 
	 
	 

	Quarterly consolidating financial statements
	Quarterly within 45 days
	Yes   No

	Annual financial statement (CPA Audited)
	FYE within 150 days
	Yes   No

	10‐Q, 10‐K and 8-K
	Within 5 days after filing with SEC
	Yes   No

	Quarterly Compliance Certificate
	Contemporaneously with delivery of
the 10-Q and 10-K
	Yes   No

	Annual operating budgets and annual financial projections
	FYE within 45 days
	Yes   No

	
				
	Financial Covenant
	Required
	Actual
	Complies

	 
	 
	 
	 

	Maintain as of the last day of each applicable quarter:
	 
	 
	 

	Modified EBITDA (measured on a trailing 12 month basis)
	As set forth in Section 6.7(a)
	$_________
	Yes   No

	

Adjusted Quick Ratio
	

> 2.0 :1.0
	

___ : ___
	Yes   No

	
				
	Performance Pricing/Unused Revolving Line Margin
	Required
	Actual
	Eligible?

	 
	 
	 
	 

	Adjusted Quick Ratio (quarterly)
	> 2.75:1.0
	_____:1.0
	Yes   No

The following financial covenant analyses and information set forth in Schedule 1 attached hereto are true and accurate as of the date of this Certificate.

The following are the exceptions with respect to the certification above:  (If no exceptions exist, state “No exceptions to note.”)

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

	
		
	

BORROWER:
JIVE SOFTWARE, INC.
By: _________________________________________ 
Name: ______________________________________ 
Title: _______________________________________

	BANK USE ONLY

Received by: _____________________
AUTHORIZED SIGNER
Date:    _________________________

Verified: ________________________
AUTHORIZED SIGNER
Date:    _________________________

Compliance Status:   Yes     No

Schedule 1 to Compliance Certificate

Financial Covenants of Borrower

 In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern.

Dated:    ____________________

I.        Modified EBITDA (Section 6.7(a)) (tested quarterly)
		
	Required:
	Modified EBITDA of at least ($25,000,000.00) for each of the twelve-month periods ending on the last day of the fiscal quarters ending December 31, 2015, March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016 and (ii) ($10,000,000.00) for the twelve (12) month periods ending on the last day of the fiscal quarter ending March 31, 2017, and as of the last day of each fiscal quarter thereafter.

	
					
	A.
	Net Income
	

	$—
	

	B.
	To the extent included in the determination of earnings for such period

	

	$—
	

	 
	1.   Interest Expense 
	

	$—
	

	 
	2.   income tax expense 
	

	$—
	

	 
	3.   depreciation expense 
	

	$—
	

	 
	4.   amortization expense 
	

	$—
	

	 
	5.   The sum of lines 1 through 4

	

	$—
	

	C.
	Non-recurring expenses or charges that do not represent a cash item in such period or any future period, including stock based compensation and any purchase accounting adjustments

	

	$—
	

	D.
	Impairment of goodwill, intangible and tangible assets previously approved by Bank

	

	$—
	

	E.
	Other adjustments approved by Bank on a case-by-case basis

	

	$—
	

	F.
	Modified EBITDA (line A plus line B.5 plus line C plus line D plus line E)
	

	$—
	

Is line F equal to or greater than the amount applicable above?
	
					
	 
	No, not in compliance
	 
	 
	Yes, in compliance

II.    Adjusted Quick Ratio (Section 6.7(b) (tested quarterly))

		
	Required:
	2.0 to 1.0

	
					
	A.
	Aggregate value of the unrestricted cash and Cash Equivalents of Borrower maintained with Bank
	

	$—
	

	B.
	Aggregate value of unrestricted and unencumbered cash or Cash Equivalents deposited with or invested through a third party in investments with maturities of fewer than twelve (12) months so long as a Control Agreement satisfactory to Bank has been executed and delivered with respect to such deposits or investments
	

	$—
	

	C.
	Aggregate value of the net billed accounts receivable of Borrower
	

	$—
	

	D.
	Quick Assets (the sum of lines A through C)
	

	$—
	

	E.
	Aggregate value of Loan Obligations to Bank
	

	$—
	

	F.
	Aggregate value of liabilities that should, under GAAP, be classified as liabilities on Borrower’s consolidated balance sheet, including all Indebtedness, and not otherwise reflected in line E above that matures within one (1) year
	

	$—
	

	G.
	Current Liabilities (the sum of lines E and F)   
	

	$—
	

	H.
	Current portion of Deferred Revenue
	

	$—
	

	I.
	Line G minus line H
	

	$—
	

	J.
	Adjusted Quick Ratio (line D divided by line I)
	

	$—
	

Is line J equal to or greater than the amount applicable above?
	
					
	 
	No, not in compliance
	 
	 
	Yes, in compliance

This Loan Modification Agreement is executed as of the date first written above.                            
	
						
	BORROWER:
	 
	 BANK:
	 

	 
	 
	 
	 

	JIVE SOFTWARE, INC.
	 
	SILICON VALLEY BANK
	 

	 
	 
	 
	 
	 
	 

	By:
	/s/ Bryan J. LeBlanc
	 
	By:
	/s/ Soren Peterson
	 

	Name:
	Bryan J. LeBlanc
	 
	Name:
	Soren Peterson
	 

	Title:
	Chief Financial Officer
	 
	Title:
	Vice PresidentEX-10.1

 Exhibit 10.1 
  

 
 

 
 FORM OF POPULAR, INC. 

2017 LONG-TERM EQUITY INCENTIVE AWARD 

AND AGREEMENT 

Recipient: 
 The
Compensation Committee of the Board of Directors of Popular, Inc. (the “Committee”) awarded you on February 24, 2017 (the “Grant Date”) a Long-Term Incentive Award consisting of Restricted Stock
(“Restricted Stock”) and Performance Shares (“Performance Shares” and, in conjunction with the Restricted Stock, the “Award”). 

This award agreement (the “Award Agreement”), dated as of the Grant Date, sets forth the terms and conditions of your Award.
This Award is made under the Popular, Inc. 2004 Omnibus Incentive Plan, as amended (the “Plan”) and, except as otherwise provided herein, is subject to the terms of the Plan. Capitalized terms used but not otherwise defined in this
Award Agreement have the meanings given in the Plan. 
 1. Award. The number of shares of Restricted Stock and Performance Shares
subject to this Award is set forth in Annex 1 hereto. The Award will vest as set forth below. 
 2. Vesting; Payout. 

(a) Restricted Stock Vesting. Except as otherwise stated in this Section 2, you shall become vested in the Restricted Stock as
follows (each of the dates described in (i) and (ii) below, a “Restricted Stock Vesting Date”): 
 (i) 80% of
your Restricted Stock shall vest in equal annual installments on each of the first four (4) anniversaries of the Grant Date specified in Annex 1, and 

(ii) 20% of your Restricted Stock shall vest upon termination of your employment after attaining (x) age 55 with 10 years of service with
the Corporation or (y) age 60 with 5 years of service with the Corporation. 
 Years of service shall be determined pursuant to the
Corporation’s personnel policies and procedures. 
 (b) Performance Shares Vesting. Except as otherwise stated in this
Section 2, you shall become vested in the Performance Shares on the third anniversary of the Grant Date specified in Annex 1, subject to the Corporation’s achievement of the Performance Goals specified in Annex 1 during the Performance
Cycle as certified by the Committee (hereinafter the “Performance Shares Vesting Date” and, together with the Restricted Stock Vesting Date, the “Vesting Date”). The Performance Goals will be based on two
performance metrics weighted equally: the Relative Total Shareholder 

 
Return (the “TSR”) and the Absolute Earnings per Share (the “EPS”) goals. The Performance Cycle is a three (3) year period beginning on January 1 of the calendar
year of the Grant Date and ending on December 31 of the third year. Each Performance Goal will have a defined minimum threshold (i.e., minimum result for which an incentive would be earned), target (i.e., result at which 100% of the incentive
would be earned) and maximum level of performance (i.e., result at which 1.5 times the incentive target would be earned). 
 (c) Approved
Retirement. Upon an Approved Retirement after attaining (x) age 55 with 10 years of service with the Corporation or (y) age 60 with 5 years of service with the Corporation: (1) your outstanding Restricted Stock shall fully vest;
and (2) your outstanding Performance Shares shall continue outstanding and vest in full on the Performance Shares Vesting Date in accordance with the actual results of the Performance Goals during the Performance Cycle. 

(d) Vesting upon Retirement on or after age 50 before attaining age 55 and 10 years of service. The Committee, at its discretion, may
accord the same treatment accorded in Section 2(c) above if you retire from your employment on or after age 50, and before attaining age 55 and 10 years of service, provided the sum of your age and years of service is at least 75. 

(e) Death. Provided that on the date of your death you are still employed by the Corporation and your rights in respect of your Award
have not been previously terminated, any then unvested outstanding Award shall immediately vest and be paid to the representative of your estate promptly after your death. In the case of the Performance Shares, the number of shares will be
calculated as if the target number of Performance Shares had in fact been earned. 
 (f) Disability. If you become subject to
Disability while you are still employed by the Corporation, any then unvested outstanding Award shares shall vest and shall be paid to you promptly after you become subject to Disability. In the case of the Performance Shares, the number of shares
will be calculated as if the target number of Performance Shares had in fact been earned. 
 (g) Change of Control. If your
employment is terminated by the Corporation or any successor entity thereto without Cause, or if you terminate your employment for Good Reason, in each case upon or within two years after a Change of Control, prior to a Vesting Date, and provided
your rights in respect of the shares of your unvested Award have not previously terminated, the shares of your unvested Award shall immediately vest and be delivered to you promptly after such termination of employment. In the case of the
Performance Shares, the number of shares will be calculated as if the target number of Performance Shares had in fact been earned. 
 (h)
Termination without Cause. If the Corporation terminates your employment without Cause you will receive payment of the Award on a prorated basis based on the number of full months in the vesting schedule in which you were an active employee
(with a partial month worked counted as a full month if you were an active employee for 15 days or more in the month) and such reduced Award will vest immediately upon your termination of employment, calculated in the case of Performance Shares as
if the target number of Performance Shares had in fact been earned, as provided in the Plan. 
 (i) Payout. The transfer restrictions
on the applicable number of whole shares of Restricted Stock shall lapse on each Vesting Date or such other vesting date as determined in this Section 2 and in the terms of the Plan. In the case of the Performance Shares, the criteria that the
Committee will utilize to determine the number of shares earned will be based upon the actual performance results during the Performance Cycle. 

  
 2 

 3. Termination of Award. 

(a) Except as provided herein, your rights in respect of your outstanding unvested Award shares shall immediately terminate, and no shares
shall be paid in respect thereof, if at any time prior to the respective Vesting Date you terminate your employment. 
 (b) If the
Corporation terminates your employment for Cause, your Award shares shall be cancelled and the provisions under the Plan will apply. 
 4.
Non-transferability. This Award (or any rights and obligations hereunder) may not be sold, exchanged, transferred, assigned, pledged, hypothecated or otherwise disposed of or hedged, in any manner
(including through the use of any cash-settled instrument), whether voluntarily or involuntarily and whether by operation of law or otherwise, other than by will or by the laws of descent and distribution. 

5. Withholding, Consents and Legends. 

(a) You shall be solely responsible for any applicable taxes (including, without limitation, income and excise taxes) and penalties, and any
interest that accrues thereon, incurred in connection with your Award. The Corporation will withhold shares of Common Stock with a value equal to the payment of the taxes that the Corporation determines it is required to withhold under applicable
tax laws with respect to the Award (with such withholding obligation determined based on any applicable minimum statutory withholding rates), in connection with the vesting of the shares thereof, and cause the restrictions on the remainder of the
shares subject to your Award to lapse pursuant to Section 2(i). The Corporation will use the Fair Value of the Common Stock in order to determine the number of shares to be withheld. If you wish to remit cash to the Corporation (through payroll
deduction or otherwise), in each case in an amount sufficient in the opinion of the Corporation to satisfy such withholding obligation, you must notify the Corporation in advance and do so in compliance with all applicable laws and pursuant to such
rules as the Corporation may establish from time to time, including, but not limited to, the Corporation’s Insider Trading Policy. 

(b) Your right to receive shares pursuant to the Award is conditioned on the receipt to the reasonable satisfaction of the Committee of any
required consent that the Committee may reasonably determine to be necessary or advisable. By accepting delivery of the shares, you acknowledge that you are subject to Corporation’s Insider Trading Policy. 

  
 3 

 6. Section 409A. Shares awarded under this Award Agreement are intended to be exempt from
Section 409A of the U.S. Code, to the extent applicable, and this Award Agreement is intended to, and shall be interpreted, administered and construed consistent therewith. The Committee shall have full authority to give effect to the intent of this
Section 6. 
 7. No Rights to Continued Employment. Nothing in this Award Agreement shall be construed as giving you any right
to continued employment by the Corporation or any of its affiliates or affect any right that the Corporation or any of its affiliates may have to terminate or alter the terms and conditions of your employment. 

8. Successors and Assigns of the Corporation. The terms and conditions of this Award Agreement shall be binding upon, and shall inure
to the benefit of, the Corporation and its successor entities. 
 9. Committee Discretion. Subject to the terms of the Plan, the
Committee shall have full discretion with respect to any actions to be taken or determinations to be made in connection with this Award Agreement, and its determinations shall be final, binding and conclusive. 

10. Amendment. The Committee reserves the right at any time to amend the terms and conditions set forth in this Award Agreement;
provided that, notwithstanding the foregoing, no such amendment shall materially adversely affect your rights and obligations under this Award Agreement without your consent (or the consent of your estate, if such consent is obtained after
your death), and provided, further, that the Committee may not accelerate or postpone the payout of shares to occur at a time other than the applicable time provided for in this Award Agreement. Any amendment of this Award Agreement
shall be in writing signed by an authorized member of the Committee or a person or persons designated by the Committee. 
 11.
Adjustment; Other Plan Provisions. Subject to Section 10, the Committee shall adjust equitably the terms of this Award in accordance with Section 5.4 of the Plan, if applicable. Subject to the terms of this Award Agreement, the
Restricted Stock shall be subject to the terms of the Plan, including, but not limited to, the provisions of Section 8.4 related to dividends and voting rights. Cash dividends paid on the Restricted Stock and on all of the Common Stock that may
be subsequently acquired with such cash dividends, will be invested in the purchase of additional shares of Common Stock of the Corporation in accordance with the Popular, Inc. Dividend Reinvestment and Stock Purchase Plan (DRIP); such shares are
not subject to the restrictions and are immediately vested. Dividends on Performance Shares will accrue during the Performance Cycle and be paid at vesting based on the actual number of shares that vest. 

12. The Restricted Stock shall be held in custody by the Fiduciary Services Division of Banco Popular de Puerto Rico. 

  
 4 

 13. Governing Law. This award shall be governed by and construed in accordance with the
laws of Puerto Rico, without regard to principles of conflicts of laws. 
 14. Incentive Recoupment. This award shall be subject to
the terms of the Popular, Inc. Incentive Recoupment Guideline in effect as of the Grant Date and as such guideline may be required to be modified in accordance with applicable law or regulation. 

15. Headings. The headings in this Award Agreement are for the purpose of convenience only and are not intended to define or limit the
construction of the provisions hereof. 
 IN WITNESS WHEREOF, POPULAR, INC. and the Recipient caused this Award Agreement to be duly
executed and delivered as of the Grant Date. 
  

									
	POPULAR, INC.	 		 	ACCEPTED:
				
	By:	 	[INSERT NAME OF REPRESENTATIVE]	 		 	[INSERT NAME OF RECIPIENT]
	Title:	 	[INSERT TITLE OF REPRESENTATIVE]	 		 		 	
			
	  
	 		 	  

	Signature	 	Signature

  
 5 

 ANNEX 1 

POPULAR, INC. 
 2017
LONG-TERM EQUITY INCENTIVE AWARD 
  

			
	Recipient:	 	Employee Number:

 Grant Date: 
 Total Dollar Value
of Award: 
 Common Stock Market Price as of closing on Grant Date: 

Restricted Stock Scheduled Vesting Dates: 
 Dollar
Value of Restricted Stock Award: 
 Shares of Restricted Stock Awarded: 
  

			
	Shares (20%)	  	February 24, 2018
	Shares (20%)	  	February 24, 2019
	Shares (20%)	  	February 24, 2020
	Shares (20%)	  	February 24, 2021
		
	Shares (20%)	  	 Upon termination of your employment after attaining:

(i) age 55 with 10 years of service, or (ii) age 60 with 5 years of service.

  
 6 

 Performance Shares Vesting (Vesting Date: February 24, 2020): 

Dollar Value of Performance Shares Award: 
 Grant Date:
February 24, 2017 
 Common Stock Market Price as of closing on Grant Date: $         

Total Target Number of Shares: (50% Total Shareholder Return / 50% Earnings per Share) 

 

					
	Relative Total Shareholder Return (TSR)1 –	 	 Percentile Rank among

Comparator Group
	 	 Shares Earned

(% of Target)

			
	Opening Price =	 	 75th Percentile or above

(maximum)
	 	(1.5x target shares)
			
	Target Number of Performance Shares:	 	 50th Percentile

(target)
	 	(1x target shares)
			
		 	 25th Percentile

(threshold)
	 	(0.5x target shares)
			
		 	Below 25th Percentile	 	0
			
	Absolute Earnings Per Share (EPS)2 –	 	 EPS
	 	 Shares Earned

(% of Target)

			
	Cumulative annual EPS 2017-2019	 		 	(1.5x target shares)
			
	Target Number of Performance Shares:	 		 	(1x target shares)
	 		 	  
 (0.5x target shares)

			
		 		 	0

 Results between threshold, target and maximum performance will be interpolated to determine vesting award

  

	1 	TSR will be calculated as [(Closing Price at end of period * (1 + number of shares purchased assuming reinvestment of dividends))/Opening Price at beginning of period] – 1 

 

	 	•	 	Closing Price and Opening Price are based on the preceding 60 trading days average in order to mitigate against share price volatility of
point-in-time metrics. 

  

	 	•	 	Opening price = average price 10/6/16-12/31/16 

  

	 	•	 	Closing price = average price 10/7/19-12/31/19 

  

	 	•	 	TSR calculations shall assume that dividends are reinvested on the ex-dividend date (i.e., the date a dividend asset is guaranteed). 

Comparator Group — SNL US Banks greater than $10 billion in assets – Performance will be based on the composition of the group at the end of
the 3-year Performance Cycle. 
 If Popular’s absolute TSR is negative, payout will be limited to a maximum of
100% of target. 
  

	2 	Cumulative total of annual basic EPS for 3 years (2017-2019). The Committee may adjust the goal or results to reflect a core profitability that would not be unduly inflated or deflated by certain transactions that do
not reflect the underlying performance of Popular’s ongoing operations, including, but not limited to, the impact of significant tax reform, sales of non-earning assets, sales of branches or other
businesses, certain business acquisition costs and revenues, extraordinary events or charitable contributions, severance costs and certain litigation and settlement costs, and the effect of share repurchases, among others. 

  
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