Document:

Exhibit 10.2

 

FORM OF

 

REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT, dated as of [·], 2018 (this “Agreement”), is by and between FirstCaribbean International Bank Limited, a company incorporated under the laws of Barbados (the “Company”), and CIBC Investments (Cayman) Limited, a Cayman Islands limited company (“CICL”).

 

W I T N E S S E T H:

 

WHEREAS, the Company is currently contemplating an underwritten initial public offering (“IPO”) of Common Shares (as defined below); and

 

WHEREAS, the Company desires to grant registration rights to CICL on the terms and conditions set out in this Agreement;

 

NOW, THEREFORE, in consideration of the covenants and agreements contained herein, the parties hereto agree as follows:

 

ARTICLE 1

 

DEFINITIONS

 

Section 1.01.                          Defined Terms.  As used in this Agreement, the following terms shall have the following meanings:

 

“30% Date” means the first date on which CIBC ceases to beneficially own at least 30% of the outstanding Common Shares.

 

“Action” means any demand, action, suit, countersuit, arbitration, inquiry, proceeding or investigation by or before any Governmental Authority or any federal, state, local, foreign or international arbitration or mediation tribunal.

 

“Affiliate” of any Person means a Person that controls, is controlled by, or is under common control with such Person; provided, however, that, for purposes of this Agreement, the Company and its Subsidiaries shall not be considered to be “Affiliates” of any of CICL or CIBC and its other Subsidiaries (other than the Company and its Subsidiaries), and none of CICL, CIBC or CIBC’s other Subsidiaries (other than the Company and its Subsidiaries) shall be considered to be “Affiliates” of the Company or its Subsidiaries.  As used herein, “control” of a Person means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through ownership of voting securities or other interests, by contract or otherwise.

 

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

 

 

“Business Day” means any day other than a Saturday, Sunday or a day on which banking institutions are authorized or obligated by law to be closed in New York, New York or Barbados.

 

“CIBC” means Canadian Imperial Bank of Commerce, a bank organized under the Bank Act (Canada).

 

“CICL” has the meaning set forth in the preamble to this Agreement and shall include its successors, by merger, acquisition, reorganization or otherwise.

 

“Common Shares” shall mean the common shares of the Company, no par value per share.

 

“Company” has the meaning set forth in the preamble to this Agreement and shall include its successors, by merger, acquisition, reorganization or otherwise.

 

“Company Notice” has the meaning set forth in Section 2.01(a).

 

“Company Takedown Notice” has the meaning set forth in Section 2.01(f).

 

“Demand Registration” has the meaning set forth in Section 2.01(a).

 

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

 

“Governmental Authority” means any nation or government, state, municipality or other political subdivision thereof, and any entity, body, agency, commission, department, board, bureau, court, tribunal or other instrumentality, whether federal, state, local, domestic, foreign or multinational, exercising executive, legislative, judicial, regulatory, administrative or other similar functions of, or pertaining to, government.

 

“Holder” shall mean CICL or any of its Affiliates, so long as such Person holds any Registrable Securities, and any Person owning Registrable Securities who is a permitted transferee of rights under Section 3.03.

 

“Initiating Holder” has the meaning set forth in Section 2.01(a).

 

“IPO” has the meaning set forth in the recitals to this Agreement.

 

“Loss” or “Losses” has the meaning set forth in Section 2.08(a).

 

“Majority Holders” has the meaning set forth in Section 2.03.

 

“Person” means an individual, a general or limited partnership, a corporation, a trust, a joint venture, an unincorporated organization, a limited liability entity, any other entity and any Governmental Authority.

 

“Piggyback Registration” has the meaning set forth in Section 2.02(a).

 

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“Prospectus” means the prospectus included in any Registration Statement, all amendments and supplements to such prospectus, including post-effective amendments, and all other material incorporated by reference in such prospectus.

 

“Registrable Securities” means any Shares; provided that any such Shares shall cease to be Registrable Securities if (i) they have been registered and sold pursuant to an effective Registration Statement, (ii) they have been transferred by a Holder in a transaction in which the Holder’s rights under this Agreement are not, or cannot be, assigned, (iii) they may be sold pursuant to Rule 144 under the Securities Act without limitation thereunder on volume or manner of sale, or (iv) they have ceased to be outstanding.

 

“Registration” means a registration with the SEC of the offer and sale to the public of Common Shares under a Registration Statement.  The terms “Register,” “Registered” and “Registering” shall have a correlative meaning.

 

“Registration Expenses” shall mean all expenses incident to the Company’s performance of or compliance with this Agreement, including all (i) registration, qualification and filing fees; (ii) expenses incurred in connection with the preparation, printing and filing under the Securities Act of the Registration Statement, any Prospectus and any issuer free writing prospectus and the distribution thereof; (iii) the fees and expenses of the Company’s counsel and independent accountants; (iv) the fees and expenses incurred in connection with the registration or qualification and determination of eligibility for investment of the Registrable Securities under the state or foreign securities or blue sky laws and the preparation, printing and distribution of a blue sky memorandum (including the related fees and expenses of counsel); (v) the costs and charges of any transfer agent and any registrar; (vi) all expenses and application fees incurred in connection with any filing with, and clearance of an offering by, Financial Industry Regulatory Authority, Inc.; (vii) expenses incurred in connection with any “road show” presentation to potential investors; (viii) printing expenses, messenger, telephone and delivery expenses; (ix) internal expenses of the Company (including all salaries and expenses of employees of the Company performing legal or accounting duties); and (x) fees and expenses of listing any Registrable Securities on any securities exchange on which the Common Shares are then listed; but excluding any Selling Expenses.

 

“Registration Period” has the meaning set forth in Section 2.01(c).

 

“Registration Rights” shall mean the rights of the Holders to cause the Company to Register Registrable Securities pursuant to this Agreement.

 

“Registration Statement” means any registration statement of the Company filed with, or to be filed with, the SEC under the rules and regulations promulgated under the Securities Act, including the related Prospectus, amendments and supplements to such registration statement, including post-effective amendments, and all exhibits and all material incorporated by reference in such registration statement.

 

“SEC” means the U.S. Securities and Exchange Commission.

 

“Securities Act” means the U.S. Securities Act of 1933, as amended.

 

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“Selling Expenses” means all underwriting discounts, selling commissions and transfer taxes applicable to the sale of Registrable Securities hereunder.

 

“Separation Agreement” means the Separation Agreement among the Company, CIBC and CICL, executed on [·], 2018, as amended from time to time.

 

“Shares” means all Common Shares that are beneficially owned by CICL or any of its Affiliates, or any permitted transferee of rights under Section 3.03 from time to time, whether or not held immediately following the IPO.

 

“Shelf Registration” means a Registration Statement of the Company for an offering to be made on a delayed or continuous basis of Common Shares pursuant to Rule 415 under the Securities Act (or similar provisions then in effect).

 

“Subsidiary” means, when used with respect to any Person, (a) a corporation in which such Person or one or more Subsidiaries of such Person, directly or indirectly, owns capital stock having a majority of the total voting power in the election of directors of all outstanding shares of all classes and series of capital stock of such corporation entitled generally to vote in such election; and (b) any other Person (other than a corporation) in which such Person or one or more Subsidiaries of such Person, directly or indirectly, has (i) a majority ownership interest or (ii) the power to elect or direct the election of a majority of the members of the governing body of such first-named Person.

 

“Takedown Notice” has the meaning set forth in Section 2.01(f).

 

“Underwritten Offering” means a Registration in which securities of the Company are sold to an underwriter or underwriters on a firm commitment basis for reoffering to the public.

 

Section 1.02.                          General Interpretive Principles.  Whenever used in this Agreement, except as otherwise expressly provided or unless the context otherwise requires, any noun or pronoun shall be deemed to include the plural as well as the singular and to cover all genders.  Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” Unless otherwise specified, the terms “hereof,” “herein,” “hereunder” and similar terms refer to this Agreement as a whole (including the exhibits hereto), and references herein to Articles and Sections refer to Articles and Sections of this Agreement.  All references to currency monetary values and dollars set forth herein shall mean United States dollars.  Except as otherwise indicated, all periods of time referred to herein shall include all Saturdays, Sundays and holidays; provided, however, that if the date to perform the act or give any notice with respect to this Agreement shall fall on a day other than a Business Day, such act or notice may be performed or given timely if performed or given on the next succeeding Business Day.  The parties have participated jointly in the negotiation and drafting of this Agreement and, in the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as jointly drafted by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement.

 

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ARTICLE 2

 

REGISTRATION RIGHTS

 

Section 2.01.                          Registration.

 

(a)                                 Request.  Any Holder(s) (collectively, the “Initiating Holder”) shall have the right to request that the Company file a Registration Statement with the SEC on the appropriate registration form for all or part of the Registrable Securities held by such Holder once such Registrable Securities are no longer subject to the underwriter lock-up applicable to the IPO (which may be due to the expiration or waiver of such lock-up with respect to such Registrable Securities) by delivering a written request to the Company specifying the number of shares of Registrable Securities such Holder wishes to Register and the intended method of distribution thereof (a “Demand Registration”).  The Company shall (i) within 10 Business Days of the receipt of such request, give written notice of such Demand Registration to all other Holders (the “Company Notice”), (ii) use its reasonable best efforts to file a Registration Statement in respect of such Demand Registration within 30 days of receipt of the request, and (iii) use its reasonable best efforts to cause such Registration Statement to become effective as soon as reasonably practicable thereafter.  The Company shall include in such Registration all Registrable Securities that each Holder requests to be included within the 10 Business Days following their receipt of the Company Notice, subject to, if applicable, compliance by such Holder with Section 2.01(d).

 

(b)                                 Limitations of Demand Registrations.  There shall be no limitation on the number of Demand Registrations pursuant to Section 2.01(a); provided, however, that the Holders may not require the Company to effect more than three Demand Registrations in a 12-month period or, on or after the 30% Date, any Demand Registration within a period of 60 days after the effective date of the Registration Statement relating to any other Demand Registration (or such longer period as the underwriters (if any) of such other Demand Registration may require).  The Registrable Securities requested to be Registered pursuant to Section 2.01(a) must represent (i) an aggregate offering price of Registrable Securities that is reasonably expected to equal at least $35,000,000 or (ii) all of the remaining Registrable Securities owned by the requesting Holder and its Affiliates.  Notwithstanding the foregoing, in addition to the three Demand Registrations contemplated by this Section 2.01(b), not more frequently than once in any 12-month period, CICL may make one Demand Registration that (x) is not an Underwritten Offering, (y) involves the registration of a sale of Registrable Securities to one transferee or to transferees acting as a group within the meaning of the Exchange Act, and (z) requests the registration of Registrable Securities representing (A) an aggregate offering price of Registrable Securities that is reasonably expected to equal at least $5,000,000 or (B) all of the remaining Registrable Securities owned by CICL and its Affiliates.

 

(c)                                  Effective Registration.  The Company shall be deemed to have effected a Registration for purposes of Section 2.01(a) if the Registration Statement is declared effective by the SEC or becomes effective upon filing with the SEC, and remains effective until the earlier of (i) the date when all Registrable Securities thereunder have been sold and (ii) 60 days from the effective date of the Registration Statement (the “Registration Period”).  No Registration (other than a Shelf Registration) shall be deemed to have been effective if the conditions to closing

 

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specified in the underwriting agreement, if any, entered into in connection with such Registration are not satisfied by reason of any action or inaction on the part of the Company.  If, during the Registration Period, such Registration is subject to any stop order, injunction or other similar order or requirement of the SEC or other Governmental Authority, the Registration Period shall be extended on a day-for-day basis for any period the Holder is unable to complete an offering as a result of such stop order, injunction or other similar order or requirement of the SEC or other Governmental Authority.

 

(d)                                 Underwritten Offering.  If the Initiating Holder so indicates at the time of its request pursuant to Section 2.01(a), such offering of Registrable Securities shall be in the form of an Underwritten Offering and the Company shall include such information in the Company Notice.

 

(e)                                  Priority of Securities in an Underwritten Offering.  If the managing underwriter or underwriters of a proposed Demand Registration that is an Underwritten Offering, including an Underwritten Offering from a Shelf Registration, informs the Company and the Holders with Registrable Securities in the proposed Underwritten Offering in writing that, in its or their opinion, the number of securities requested to be included in such Underwritten Offering exceeds the number that can be sold in such Underwritten Offering without being likely to have a significant adverse effect on the price, timing or distribution of the securities offered or the market for the securities offered, then the number of securities to be included in such Underwritten Offering shall be reduced in the following order of priority: first, there shall be excluded from the Underwritten Offering any securities to be sold for the account of any selling securityholder other than the Holders; second, there shall be excluded from the Underwritten Offering any securities to be sold for the account of the Company; third, there shall be excluded from the Underwritten Offering any securities to be sold for the account of Holders other than CICL and its Affiliates that have been requested to be included therein pro rata based on the number of Registrable Securities owned by each such Holder; and finally, the number of Registrable Securities of CICL and its Affiliates shall be reduced, in each case to the extent necessary to reduce the total number of securities to be included in such offering to the number recommended by the managing underwriter or underwriters.

 

(f)                                   Shelf Registration.  At any time after the date hereof when the Company is eligible to Register the applicable Registrable Securities on Form F-3 (or a successor form) and the Holder may request Demand Registrations, the requesting Holder(s) may request the Company to effect a Demand Registration as a Shelf Registration.  There shall be no limitations on the number of Underwritten Offerings pursuant to a Shelf Registration; provided, however, that the Holders may not require the Company to effect more than three Underwritten Offerings in a 12-month period or, on or after the 30% Date, any Underwritten Offering within a period of 60 days after the closing of any other Underwritten Offering (or such longer period as the underwriters of such other Underwritten Offering may require).  Any Holder of Registrable Securities included on a Shelf Registration shall have the right to request that the Company cooperate in a shelf takedown at any time, including an Underwritten Offering, by delivering a written request thereof to the Company specifying the number of shares of Registrable Securities such Holder wishes to include in the shelf takedown (“Takedown Notice”).  The Company shall (i) within 5 Business Days of the receipt of a Takedown Notice for an Underwritten Offering, give written notice of such Takedown Notice to all other Holders of Registrable Securities

 

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included on such Shelf Registration (the “Company Takedown Notice”), and (ii) take all actions reasonably requested by such Holder, including the filing of a Prospectus supplement and the other actions described in Section 2.04, in accordance with the intended method of distribution set forth in the Takedown Notice as expeditiously as practicable.  If the takedown is an Underwritten Offering, the Company shall include in such Underwritten Offering all Registrable Securities subject to the Shelf Registration that the Holders request to be included within the 5 days following their receipt of the Company Takedown Notice, subject to Section 2.01(e).  If the takedown is an Underwritten Offering, the Registrable Securities requested to be included in a shelf takedown must represent (i) an aggregate offering price of Registrable Securities that is reasonably expected to equal at least $20,000,000 or (ii) all of the remaining Registrable Securities owned by the requesting Holder and its Affiliates.

 

(g)                                  SEC Form.  Except as set forth in the next sentence, the Company shall use its reasonable best efforts to cause Demand Registrations to be Registered on Form F-3 (or any successor form), and if the Company is not then eligible under the Securities Act to use Form F-3, Demand Registrations shall be Registered on Form F-1 (or any successor form).  The Company shall use its commercially reasonable efforts to become eligible to use Form F-3 and, after becoming eligible to use Form F-3, shall use its commercially reasonable efforts to remain so eligible.  All Demand Registrations (i) shall comply with applicable requirements of the Securities Act and (ii) together with each Prospectus included, filed or otherwise furnished by the Company in connection therewith, shall not include any untrue statement of material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein in light of the circumstances under which they were made not misleading; provided, however, that this clause (ii) shall not apply to any information provided by a Holder to the Company for inclusion therein.

 

Section 2.02.                          Piggyback Registrations.

 

(a)                                 Participation.  If the Company proposes to file a Registration Statement under the Securities Act with respect to any offering of Common Shares for its own account and/or for the account of any other Persons (other than a Registration (i) under Section 2.01 hereof, (ii) pursuant to a Registration Statement on Form S-8 (or other registration solely relating to an offering or sale to employees or directors of the Company pursuant to any employee stock plan or other employee benefit arrangement) or Form F-4 or similar form that relates to a transaction subject to Rule 145 under the Securities Act, (iii) pursuant to any form that does not include substantially the same information as would be required to be included in a Registration Statement covering the sale of Registrable Securities, (iv) in connection with any dividend reinvestment or similar plan or (v) for the sole purpose of offering securities to another entity or its security holders in connection with the acquisition of assets or securities of such entity or any similar transaction), then, as soon as practicable (but in no event less than 15 days prior to the proposed date of filing such Registration Statement), the Company shall give written notice of such proposed filing to each Holder, and such notice shall offer such Holders the opportunity to Register under such Registration Statement such number of Registrable Securities as each such Holder may request in writing (a “Piggyback Registration”).  Subject to Section 2.02(c), the Company shall include in such Registration Statement all such Registrable Securities that any Holder requests to be included therein prior to the effectiveness of the Registration Statement; provided, however, that if, at any time after giving written notice of its intention to Register any

 

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securities pursuant to this Section 2.02(a) and prior to the effective date of the Registration Statement filed in connection with such Registration, the Company or such other Person shall determine for any reason not to Register or to delay Registration of such securities, the Company may, at its election, give written notice of such determination to each such Holder and, thereupon, (i) in the case of a determination not to Register, shall be relieved of its obligation to Register any Registrable Securities in connection with such Registration and shall have no liability to any Holder in connection with such termination, without prejudice, however, to the rights of any Holder to request that such Registration be effected as a Demand Registration under Section 2.01, and (ii) in the case of a determination to delay Registration, shall be permitted to delay Registering any Registrable Securities for the same period as the delay in Registering such other Common Shares.  No Registration effected under this Section 2.02 shall relieve the Company of its obligation to effect any Demand Registration under Section 2.01.  If the offering pursuant to a Registration Statement pursuant to this Section 2.02 is to be an Underwritten Offering, then each Holder making a request for a Piggyback Registration pursuant to this Section 2.02(a) may, and the Company shall use reasonable best efforts to coordinate arrangements with the underwriters so that each such Holder may, participate in such Underwritten Offering.  If the offering pursuant to such Registration Statement is to be on any other basis, then each Holder making a request for a Piggyback Registration pursuant to this Section 2.02(a) may, and the Company shall use reasonable best efforts to coordinate arrangements so that each such Holder may, participate in such offering on such basis.

 

(b)                                 Right to Withdraw.  Each Holder shall have the right to withdraw such Holder’s request for inclusion of its Registrable Securities in any Underwritten Offering or other selling arrangement pursuant to this Section 2.02 at any time prior to the execution of an underwriting/sales agreement with respect thereto by giving written notice to the Company of such Holder’s request to withdraw and, subject to the preceding clause, each Holder shall be permitted to withdraw all or part of such Holder’s Registrable Securities from a Piggyback Registration at any time prior to the effective date thereof.

 

(c)                                  Priority of Piggyback Registration.  If the managing underwriter or underwriters of any proposed Underwritten Offering in a Piggyback Registration informs the Company and the Holders in writing that, in its or their opinion, the number of securities intended to be included in such Underwritten Offering exceeds the number that can be sold in such Underwritten Offering without being likely to have a significant adverse effect on the price, timing or distribution of the securities offered or the market for the securities offered, then the number of securities to be included in such Underwritten Offering shall be reduced in the following order of priority: first, there shall be excluded from the Underwritten Offering any securities to be sold for the account of any selling securityholder other than the Holders; second, there shall be excluded from the Underwritten Offering any securities to be sold for the account of the Company; third, there shall be excluded from the Underwritten Offering any securities to be sold for the account of Holders other than CICL and its Affiliates that have been requested to be included therein pro rata based on the number of Registrable Securities owned by each such Holder; and finally, the number of Registrable Securities of CICL and its Affiliates shall be reduced, in each case to the extent necessary to reduce the total number of securities to be included in such offering to the number recommended by the managing underwriter or underwriters.

 

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Section 2.03.                          Selection of Underwriter(s).  In any Underwritten Offering pursuant to Section 2.01 or Section 2.02 in which a Holder is participating, CICL, in the event CICL is participating, or the Holders of a majority of the outstanding Registrable Securities being included in the Underwritten Offering (the “Majority Holders”), in the event CICL is not participating, shall select the underwriter(s).  CICL or the Majority Holders shall consult with the Company in the selection of such underwriters by CICL or such Majority Holders, provided that CICL or such Majority Holders, as applicable, shall be under no obligation to the Company as a result of or in connection with such consultation.

 

Section 2.04.                          Registration Procedures.

 

(a)                                 In connection with the Registration and/or sale of Registrable Securities pursuant to this Agreement, through an Underwritten Offering or otherwise, the Company shall use reasonable best efforts to effect or cause the Registration and the sale of such Registrable Securities in accordance with the intended methods of disposition thereof and:

 

(i)                                     prepare and file the required Registration Statement, including all exhibits and financial statements required under the Securities Act to be filed therewith, and before filing with the SEC a Registration Statement or Prospectus, or any amendments or supplements thereto, (A) furnish to the underwriters, if any, and to the Holders participating in such Registration, copies of all documents prepared to be filed, which documents will be subject to the review of such underwriters and such participating Holders and their respective counsel, and (B) consider in good faith any comments of the underwriters and Holders and their respective counsel on such documents;

 

(ii)                                  prepare and file with the SEC such amendments and supplements to such Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement effective in accordance with the terms of this Agreement and to comply with the provisions of the Securities Act with respect to the disposition of all of the Shares Registered thereon;

 

(iii)                               in the case of a Shelf Registration, prepare and file with the SEC such amendments and supplements to such Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement effective and to comply with the provisions of the Securities Act with respect to the disposition of all Shares subject thereto for a period ending on the 3rd anniversary after the effective date of such Registration Statement;

 

(iv)                              notify the participating Holders and the managing underwriter or underwriters, if any, and (if requested) confirm such advice in writing and provide copies of the relevant documents, as soon as reasonably practicable after notice thereof is received by the Company (A) when the applicable Registration Statement or any amendment thereto has been filed or becomes effective, or when the applicable Prospectus or any amendment or supplement to such Prospectus

 

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has been filed, (B) of any written comments by the SEC or any request by the SEC or any other Governmental Authority for amendments or supplements to such Registration Statement or such Prospectus or for additional information, (C) of the issuance by the SEC of any stop order suspending the effectiveness of such Registration Statement or any order preventing or suspending the use of any preliminary or final Prospectus or the initiation or threatening of any proceedings for such purposes, (D) if, at any time, the representations and warranties of the Company in any applicable underwriting agreement cease to be true and correct in all material respects, and (E) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable Securities for offering or sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose;

 

(v)                                 promptly notify each selling Holder and the managing underwriter or underwriters, if any, when the Company becomes aware of the occurrence of any event as a result of which the applicable Registration Statement or the Prospectus included in such Registration Statement (as then in effect) contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein (in the case of such Prospectus and any preliminary Prospectus, in light of the circumstances under which they were made) not misleading or, if for any other reason it shall be necessary during such time period to amend or supplement such Registration Statement or Prospectus in order to comply with the Securities Act and, in either case as promptly as reasonably practicable thereafter, prepare and file with the SEC, and furnish without charge to the selling Holder and the managing underwriter or underwriters, if any, an amendment or supplement to such Registration Statement or Prospectus which will correct such statement or omission or effect such compliance;

 

(vi)                              use its reasonable best efforts to prevent or obtain the withdrawal of any stop order or other order suspending the use of any preliminary or final Prospectus;

 

(vii)                           promptly incorporate in a Prospectus supplement or post-effective amendment such information as the managing underwriters, if any, and the Holders may reasonably request to be included therein in order to permit the intended method of distribution of the Registrable Securities; and make all required filings of such Prospectus supplement or post-effective amendment as soon as reasonably practicable after being notified of the matters to be incorporated in such Prospectus supplement or post-effective amendment;

 

(viii)                        furnish to each selling Holder and each underwriter, if any, without charge, as many conformed copies as such Holder or underwriter may reasonably request of the applicable Registration Statement and any amendment or post-effective amendment thereto, including financial statements and schedules, all documents incorporated therein by reference and all exhibits (including those incorporated by reference);

 

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(ix)                              deliver to each selling Holder and each underwriter, if any, without charge, as many copies of the applicable Prospectus (including each preliminary Prospectus) and any amendment or supplement thereto as such Holder or underwriter may reasonably request (it being understood that the Company consents to the use of such Prospectus or any amendment or supplement thereto by each selling Holder and the underwriters, if any, in connection with the offering and sale of the Registrable Securities covered by such Prospectus or any amendment or supplement thereto) and such other documents as such selling Holder or underwriter may reasonably request in order to facilitate the disposition of the Registrable Securities by such Holder or underwriter;

 

(x)                                 use its reasonable best efforts to register or qualify, and cooperate with each selling Holder, the managing underwriter or underwriters, if any, and their respective counsel, in connection with the registration or qualification of such Registrable Securities for offer and sale under the securities or “blue sky” laws of each state and other jurisdiction of the United States as any selling Holder or managing underwriter or underwriters, if any, or their respective counsel reasonably request in writing and do any and all other acts or things reasonably necessary or advisable to keep such registration or qualification in effect for so long as such Registration Statement remains in effect and so as to permit the continuance of sales and dealings in such jurisdictions of the United States for so long as may be necessary to complete the distribution of the Registrable Securities covered by the Registration Statement; provided that the Company will not be required to qualify generally to do business in any jurisdiction where it is not then so qualified or to take any action which would subject it to taxation or general service of process in any such jurisdiction where it is not then so subject;

 

(xi)                              in connection with any sale of Registrable Securities that will result in such securities no longer being Registrable Securities, cooperate with each selling Holder and the managing underwriter or underwriters, if any, to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold and not bearing any restrictive Securities Act legends; and to register such Registrable Securities in such denominations and such names as such selling Holder or the underwriter(s), if any, may request at least two Business Days prior to such sale of Registrable Securities; provided that the Company may satisfy its obligations hereunder without issuing physical stock certificates through the use of The Depository Trust Company’s Direct Registration System;

 

(xii)                           cooperate and assist in any filings required to be made with the Financial Industry Regulatory Authority and each securities exchange, if any, on which any of the Company’s securities are then listed or quoted and on each inter-dealer quotation system on which any of the Company’s securities are then quoted, and in the performance of any due diligence investigation by any underwriter (including any “qualified independent underwriter”) that is required to be retained in accordance with the rules and regulations of each such exchange, and use its reasonable best efforts to cause the Registrable Securities covered by

 

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the applicable Registration Statement to be registered with or approved by such governmental authorities as may be necessary to enable the seller or sellers thereof or the underwriter or underwriters, if any, to consummate the disposition of such Registrable Securities;

 

(xiii)                        not later than the effective date of the applicable Registration Statement, provide a CUSIP number for all Registrable Securities and provide the applicable transfer agent with printed certificates for the Registrable Securities which are in a form eligible for deposit with The Depository Trust Company; provided that the Company may satisfy its obligations hereunder without issuing physical stock certificates through the use of The Depository Trust Company’s Direct Registration System;

 

(xiv)                       in the case of an Underwritten Offering, obtain for delivery to and addressed to the underwriter or underwriters an opinion from the Company’s outside counsel in customary form and content for the type of Underwritten Offering, dated the date of the closing under the underwriting agreement;

 

(xv)                          in the case of an Underwritten Offering, obtain for delivery to and addressed to the underwriter or underwriters and, to the extent agreed by the Company’s independent certified public accountants, each selling Holder, a comfort letter from the Company’s independent certified public accountants in customary form and content for the type of Underwritten Offering, dated the date of execution of the underwriting agreement and brought down to the closing under the underwriting agreement;

 

(xvi)                       use its reasonable best efforts to comply with all applicable rules and regulations of the SEC and make generally available to its security holders, as soon as reasonably practicable, but no later than 90 days after the end of the 12-month period beginning with the first day of the Company’s first quarter commencing after the effective date of the applicable Registration Statement, an earnings statement satisfying the provisions of Section 11(a) of the Securities Act and the rules and regulations promulgated thereunder and covering the period of at least 12 months, but not more than 18 months, beginning with the first month after the effective date of the Registration Statement;

 

(xvii)                    provide and cause to be maintained a transfer agent and registrar for all Registrable Securities covered by the applicable Registration Statement from and after a date not later than the effective date of such Registration Statement;

 

(xviii)                 cause all Registrable Securities covered by the applicable Registration Statement to be listed on each securities exchange on which any of the Company’s securities are then listed or quoted and on each inter-dealer quotation system on which any of the Company’s securities are then quoted;

 

12

 

(xix)                       provide (A) each Holder participating in the Registration, (B) the underwriters (which term, for purposes of this Agreement, shall include a Person deemed to be an underwriter within the meaning of Section 2(11) of the Securities Act), if any, of the Registrable Securities to be Registered, (C) the sale or placement agent therefor, if any, (D) counsel for such underwriters or agent, and (E) any attorney, accountant or other agent or representative retained by such Holder or any such underwriter, as selected by such Holder, the opportunity to participate in the preparation of such Registration Statement, each Prospectus included therein or filed with the SEC, and each amendment or supplement thereto, and to require the insertion therein of material, furnished to the Company in writing, which in the reasonable judgment of such Holder(s) and their counsel are required to be included; and for a reasonable period prior to the filing of such Registration Statement, cause all of the Company’s officers, directors and employees and the independent public accountants who have certified its financial statements to make themselves available at reasonable times and for reasonable periods, to discuss the business of the Company and to supply all information available to the Company reasonably requested by any such Person in connection with such Registration Statement as shall be necessary to enable them to exercise their due diligence responsibility, subject to the foregoing, provided that any such Person gaining access to information or personnel pursuant to this Section 2.4(a)(xix) shall agree to use reasonable efforts to protect the confidentiality of any information regarding the Company which the Company determines in good faith to be confidential, and of which determination such Person is notified, unless (A) the release of such information is required by law or regulation or is requested or required by deposition, interrogatory, requests for information or documents by a governmental entity, subpoena or similar process, (B) such information is or becomes publicly known without a breach of this Agreement, (C) such information is or becomes available to such Person on a non-confidential basis from a source other than the Company or (D) such information is independently developed by such Person;

 

(xx)                          to cause the executive officers of the Company to participate in the customary “road show” presentations that may be reasonably requested by the managing underwriter or underwriters in any Underwritten Offering and otherwise to facilitate, cooperate with, and participate in each proposed offering contemplated herein and customary selling efforts related thereto; and

 

(xxi)                       take all other customary steps reasonably necessary to effect the Registration, offering and sale of the Registrable Securities.

 

(b)                                 As a condition precedent to any Registration or Underwritten Offering hereunder, the Company may require each Holder as to which any Registration is being effected to furnish to the Company such information regarding the distribution of such securities and such other information relating to such Holder, its ownership of Registrable Securities and other matters as the Company may from time to time reasonably request in writing.  Each such Holder agrees to furnish such information to the Company and to cooperate with the Company as reasonably necessary to enable the Company to comply with the provisions of this Agreement.

 

13

 

(c)                                  CICL agrees, and any other Holder agrees by acquisition of such Registrable Securities, that, upon receipt of any written notice from the Company of the occurrence of any event of the kind described in Section 2.04(a)(v), such Holder will forthwith discontinue disposition of Registrable Securities pursuant to such Registration Statement until such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by Section 2.04(a)(v), or until such Holder is advised in writing by the Company that the use of the Prospectus may be resumed, and if so directed by the Company, such Holder will deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such Holder’s possession, of the Prospectus covering such Registrable Securities current at the time of receipt of such notice.  In the event the Company shall give any such notice, the period during which the applicable Registration Statement for a Demand Registration is required to be maintained effective shall be extended by the number of days during the period from and including the date of the giving of such notice to and including the date when each seller of Registrable Securities covered by such Registration Statement either receives the copies of the supplemented or amended Prospectus contemplated by Section 2.04(a)(v) or is advised in writing by the Company that the use of the Prospectus may be resumed.

 

Section 2.05.                          Holdback Agreements.  Each of the Company and the Holders agrees, upon notice from the managing underwriter or underwriters in connection with any Registration for an Underwritten Offering of the Company’s securities (other than pursuant to a registration statement on Form F-4, Form S-4 or any similar or successor form or pursuant to a registration solely relating to an offering and sale to employees or directors of the Company pursuant to any employee stock plan or other employee benefit plan arrangement), not to effect (other than pursuant to such Registration) any public sale or distribution of Registrable Securities, including, but not limited to, any sale pursuant to Rule 144, or make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of, any Registrable Securities, any other equity securities of the Company or any securities convertible into or exchangeable or exercisable for any equity securities of the Company without the prior written consent of the managing underwriters during such period as reasonably requested by the managing underwriters (but in no event longer than the seven days before and the 90 days after the pricing of such Underwritten Offering).  Notwithstanding the foregoing, no holdback agreements of the type contemplated by this Section 2.05 shall be required of Holders unless each of the Company’s directors and executive officers agrees to be bound by a substantially identical holdback agreement for at least the same period of time.

 

Section 2.06.                          Underwriting Agreement in Underwritten Offerings.  In the event that any Shares are proposed to be offered pursuant to a Registration under Section 2.01 or 2.02 by means of an Underwritten Offering or other selling arrangement, no Holder may include Registrable Securities in such Underwritten Offering or other selling arrangement unless such Holder (i) agrees to sell its Registrable Securities on the basis provided in the applicable underwriting/sales arrangements; (ii) agrees to complete and execute all questionnaires, powers of attorney, indemnities, underwriting/sales agreements and other documents reasonably required under the terms of such underwriting/sales arrangements and (iii) cooperates with the Company’s reasonable requests in connection with such Registration (it being understood that the Company’s failure to perform its obligations hereunder, which failure is caused by such Holder’s failure to cooperate, will not constitute a breach by the Company of this Agreement); provided, however, that no Holder shall be required to make any representations or warranties to the

 

14

 

Company or the underwriters or other purchasers (other than representations and warranties regarding (i) such Holder’s ownership of Registrable Securities to be transferred free and clear of all liens, claims and encumbrances created by such Holder, (ii) such Holder’s power and authority to effect such transfer, (iii) such matters pertaining to such Holder’s compliance with securities laws as reasonably may be requested and (iv) such Holder’s intended method of distribution) or to undertake any indemnification obligations to the Company with respect thereto, except as otherwise provided in Section 2.08 hereof.

 

Section 2.07.                          Registration Expenses Paid By Company.  In the case of any Registration of Registrable Securities required pursuant to this Agreement (including any Registration that is delayed or withdrawn) or proposed Underwritten Offering pursuant to this Agreement, the Company shall pay all Registration Expenses regardless of whether the Registration Statement becomes effective or the Underwritten Offering is completed.  The Company shall have no obligation to pay any Selling Expenses or other expenses incurred by a Holder that are not Registration Expenses.

 

Section 2.08.                          Indemnification.

 

(a)                                 Indemnification by the Company.  The Company agrees to indemnify and hold harmless, to the full extent permitted by law, each Holder and such Holder’s officers, directors, employees, advisors, Affiliates and agents and each Person who controls (within the meaning of the Securities Act or the Exchange Act) such Holder from and against any and all losses, claims, damages, liabilities (or actions in respect thereof, whether or not such indemnified party is a party thereto) and expenses, joint or several (including reasonable costs of investigation and legal expenses) (each, a “Loss” and collectively “Losses”) arising out of or based upon (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement under which the sale of such Registrable Securities was Registered under the Securities Act (including any final or preliminary Prospectus contained therein or any amendment thereof or supplement thereto or any documents incorporated by reference therein), or any such statement made in any free writing prospectus (as defined in Rule 405 under the Securities Act) that the Company has filed or is required to file pursuant to Rule 433(d) of the Securities Act, or (ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a Prospectus, preliminary Prospectus or free writing prospectus, in light of the circumstances under which they were made) not misleading; provided, however, that the Company shall not be liable to any particular indemnified party in any such case to the extent that any such Loss arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in any such Registration Statement in reliance upon and in conformity with written information furnished to the Company by such indemnified party expressly for use in the preparation thereof.  This indemnity shall be in addition to any liability the Company may otherwise have.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Holder or any indemnified party and shall survive the transfer of such securities by such Holder.

 

(b)                                 Indemnification by the Selling Holder.  Each selling Holder agrees (severally and not jointly) to indemnify and hold harmless, to the full extent permitted by law, the Company and the Company’s directors, officers, employees, advisors, Affiliates and agents

 

15

 

and each Person who controls the Company (within the meaning of the Securities Act and the Exchange Act) from and against any Losses arising out of or based upon (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement under which the sale of such Registrable Securities was Registered under the Securities Act (including any final or preliminary Prospectus contained therein or any amendment thereof or supplement thereto or any documents incorporated by reference therein), or any such statement made in any free writing prospectus that the Company has filed or is required to file pursuant to Rule 433(d) of the Securities Act, or (ii) any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a Prospectus, preliminary Prospectus or free writing prospectus, in light of the circumstances under which they were made) not misleading to the extent, but, in each case (i) or (ii), only to the extent, that such untrue statement or omission is contained in any information furnished in writing by such selling Holder to the Company expressly for inclusion in such Registration Statement, Prospectus, preliminary Prospectus or free writing prospectus.  In no event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such Holder under the sale of the Registrable Securities giving rise to such indemnification obligation.  This indemnity shall be in addition to any liability the selling Holder may otherwise have.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Company or any indemnified party.

 

(c)                                  Conduct of Indemnification Proceedings.  Any Person entitled to indemnification hereunder will (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification (provided that any delay or failure to so notify the indemnifying party shall relieve the indemnifying party of its obligations hereunder to the extent that it is materially prejudiced by reason of such delay or failure) and (ii) permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party; provided, however, that any Person entitled to indemnification hereunder shall have the right to select and employ separate counsel and to participate in the defense of such claim, but the fees and expenses of such counsel shall be at the expense of such Person unless (a) the indemnifying party has agreed in writing to pay such fees or expenses, (b) the indemnifying party shall have failed to assume the defense of such claim within a reasonable time after receipt of notice of such claim from the Person entitled to indemnification hereunder or fails to employ counsel reasonably satisfactory to such Person or to pursue the defense of such claim in a reasonably vigorous manner, (c) the named parties to any proceeding include both such indemnified and the indemnifying party and the indemnified party has reasonably concluded (based on written advice of counsel) that there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, or (d) in the reasonable judgment of any such Person, based upon written advice of its counsel, a conflict of interest may exist between such Person and the indemnifying party with respect to such claims (in which case, if the Person notifies the indemnifying party in writing that such Person elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such claim on behalf of such Person).  If such defense is not assumed by the indemnifying party, the indemnifying party will not be subject to any liability for any settlement made without its consent, but such consent may not be unreasonably withheld, conditioned or delayed.  If the indemnifying party assumes the defense, the indemnifying party shall not have the right to settle such action without the consent of the indemnified party, which consent may not be

 

16

 

unreasonably withheld, conditioned or delayed.  No indemnifying party shall consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of an unconditional release from all liability in respect to such claim or litigation.  It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in the same jurisdiction, arising out of the same general allegations or circumstances, be liable for the fees and expenses of more than one separate firm (in addition to any one appropriate local counsel) at any one time from all such indemnified party or parties unless (x) the employment of more than one counsel has been authorized in writing by the indemnifying party or parties, (y) an indemnified party has reasonably concluded (based on written advice of counsel) that there may be legal defenses available to it that are different from or in addition to those available to the other indemnified parties or (z) a conflict or potential conflict exists or in the reasonable judgment of such Person may exist (based on advice of counsel to an indemnified party) between such indemnified party or parties and the other indemnified parties, in each of which cases the indemnifying party shall be obligated to pay the reasonable fees and expenses of such additional counsel.

 

(d)                                 Contribution.  If for any reason the indemnification provided for in Section 2.08(a) or Section 2.08(b) is unavailable to an indemnified party or insufficient to hold it harmless as contemplated by Section 2.08(a) or Section 2.08(b), then the indemnifying party shall, in lieu of indemnifying such indemnified party thereunder, contribute to the amount paid or payable by the indemnified party as a result of such Loss in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and the indemnified party on the other hand in connection with the statements or omissions which resulted in such Loss as well as any other relevant equitable considerations.  The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission.  Notwithstanding anything in this Section 2.08(d) to the contrary, no indemnifying party (other than the Company) shall be required pursuant to this Section 2.08(d) to contribute any amount in excess of the amount by which the net proceeds received by such indemnifying party from the sale of Registrable Securities in the offering to which the Losses of the indemnified parties relate (before deducting expenses, if any) exceeds the amount of any damages which such indemnifying party has otherwise been required to pay by reason of such untrue statement or omission.  The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 2.08(d) were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in this Section 2.08(d).  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.  The amount paid or payable by an indemnified party hereunder shall be deemed to include, for purposes of this Section 2.08(d), any legal or other expenses reasonably incurred by such indemnified party in connection with investigating, preparing to defend or defending against or appearing as a third party witness in respect of, or otherwise incurred in connection with, any such loss, claim, damage, expense, liability, action, investigation or proceeding.  If indemnification is available under this Section 2.08, the indemnifying parties shall indemnify each indemnified party to the full extent provided in

 

17

 

Section 2.08(a) and Section 2.08(b) hereof without regard to the relative fault of said indemnifying parties or indemnified party.

 

Section 2.09.                          Rule 144.  If the Company is not required to file reports under Section 13 or 15(d) (whichever is applicable) of the Exchange Act, it will, upon the request of any Holder, make publicly available such necessary information for so long as necessary to permit sales pursuant to Rule 144 or Regulation S under the Securities Act, and it will take such further action as any Holder may reasonably request, all to the extent required from time to time to enable such Holder to sell Registrable Securities without Registration under the Securities Act within the limitation of the exemptions provided by (a) Rule 144 or Regulation S under the Securities Act, as such Rules may be amended from time to time, or (b) any rule or regulation hereafter adopted by the SEC.  From and after the date hereof through the termination of this Agreement, the Company shall forthwith upon request furnish any Holder (i) a written statement by the Company as to whether it has complied with such requirements and, if not, the specifics thereof, (ii) a copy of the most recent annual or quarterly report of the Company, and (iii) such other reports and documents filed by the Company with the SEC as such Holder may reasonably request in availing itself of an exemption for the sale of Registrable Securities without registration under the Securities Act; provided that the Company shall not be required to furnish any such information then available on the SEC’s Electronic Data Gathering, Analysis and Retrieval System.

 

ARTICLE 3

 

MISCELLANEOUS

 

Section 3.01.                          Term.  This Agreement shall terminate upon the earlier of (i) such time as there are no Registrable Securities (or, with respect to a Holder, when such Holder holds no Registrable Securities) and (ii) the 5% Date (as defined in the Separation Agreement), except for the provisions of Section 2.07 and Section 2.08 and all of this Article 3, which shall survive any such termination.

 

Section 3.02.                          Notices.  All notices or other communications under this Agreement shall be in writing and shall be deemed to be duly given when (a) delivered in person or (b) deposited in the United States mail or private express mail, postage prepaid, addressed as follows:

 

If to CICL, to:

 

[                 ]

[                 ]

[                 ]

Attention: [·]

 

18

 

with a copy to:

 

Mayer Brown LLP

1221 Avenue of the Americas

New York, New York 10020

Attention:  James B. Carlson

 

If to the Company to:

 

FirstCaribbean International Bank Limited

Michael Mansoor Building

Warrants, Saint Michael

Barbados  BB22026

Attention: [·]

 

with a copy to:

 

Mayer Brown LLP

1221 Avenue of the Americas

New York, New York 10020

Attention:  James B. Carlson

 

and

 

[                 ]

[                 ]

[                 ]

Attention: [·]

 

Any party may, by notice to the other party, change the address to which such notices are to be given.

 

Section 3.03.                          Successors, Assigns and Transferees.  This Agreement and all provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.  The Company may assign this Agreement at any time in connection with a sale or acquisition of the Company, whether by merger, consolidation, sale of all or substantially all of the Company’s assets, or similar transaction, without the consent of the Holders; provided that the successor or acquiring Person agrees in writing to assume all of the Company’s rights and obligations under this Agreement.  A Holder may assign its rights and obligations under this Agreement to any transferee that acquires at least 5% of the outstanding Common Shares and executes an agreement to be bound hereby in the form attached hereto as Exhibit A, an executed counterpart of which shall be furnished to the Company.  Notwithstanding the foregoing, if such transfer is subject to covenants, agreements or other undertakings restricting transferability thereof, the Registration Rights shall not be transferred in connection with such transfer unless such transferee complies with all such covenants, agreements and other undertakings.

 

19

 

Section 3.04.                          GOVERNING LAW; NO JURY TRIAL.

 

(a)                                 This Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of New York, without regard to the conflict of laws principles thereof that would result in the application of any law other than the laws of the State of New York.  EACH OF THE PARTIES HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY COURT PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF AND PERMITTED UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.  EACH OF THE PARTIES HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE.

 

(b)                                 With respect to any Action relating to or arising out of this Agreement, each party to this Agreement irrevocably (i) consents and submits to the exclusive jurisdiction of the courts of the State of New York and any court of the United States located in the Borough of Manhattan in New York City; and  (ii) waives any objection which such party may have at any time to the laying of venue of any Action brought in any such court, waives any claim that such Action has been brought in an inconvenient forum and further waives the right to object, with respect to such Action, that such court does not have jurisdiction over such party; provided, however, that such manner of service of process shall not preclude the service of process in any other manner permitted under applicable law.

 

Section 3.05.                          Specific Performance.  In the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the party or parties who are or are to be thereby aggrieved shall have the right to seek specific performance and injunctive or other equitable relief of its rights under this Agreement, in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative.

 

Section 3.06.                          Headings.  The article, section and paragraph headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

Section 3.07.                          Severability.  If any provision of this Agreement or the application thereof to any Person or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof or the application of such provision to Persons or circumstances or in jurisdictions other than those as to which it has been held invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner adverse to any party.  Upon such

 

20

 

determination, the parties shall negotiate in good faith in an effort to agree upon such a suitable and equitable provision to effect the original intent of the parties.

 

Section 3.08.                          Amendment; Waiver.

 

(a)                                 This Agreement may not be amended or modified and waivers and consents to departures from the provisions hereof may not be given, except by an instrument or instruments in writing making specific reference to this Agreement and signed by the Company and CICL or, if neither CICL or any of its Affiliates is a Holder, the Holders of a majority of the Registrable Securities.

 

(b)                                 Waiver by any party of any default by the other party of any provision of this Agreement shall not be deemed a waiver by the waiving party of any subsequent or other default, nor shall it prejudice the rights of the other party.

 

Section 3.09.                          Further Assurances.  Each of the parties hereto shall execute and deliver all additional documents, agreements and instruments and shall do any and all acts and things reasonably requested by the other party hereto in connection with the performance of its obligations undertaken in this Agreement.

 

Section 3.10.                          Counterparts.  This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other party.  Execution of this Agreement or any other documents pursuant to this Agreement by facsimile or other electronic copy of a signature shall be deemed to be, and shall have the same effect as, executed by an original signature.

 

[The remainder of page intentionally left blank.  Signature page follows.]

 

21

 

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

 

	
 
    	
FIRSTCARIBBEAN   INTERNATIONAL BANK
    
	
 
    	
LIMITED
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title
    
	
 
    	
 
    
	
 
    	
CIBC   INVESTMENTS (CAYMAN) LIMITED
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title
    

 

 

EXHIBIT A

 

THIS INSTRUMENT forms part of the Registration Rights Agreement (the “Agreement”), dated as of [·], 2018, by and between FirstCaribbean International Bank Limited, corporation incorporated under the laws of Barbados, and CIBC Investments (Cayman) Limited, a Cayman Islands limited company (“CICL”).  The undersigned hereby acknowledges having received a copy of the Agreement and having read the Agreement in its entirety, and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, hereby agrees that the terms and conditions of the Agreement binding upon and inuring to the benefit of a Holder shall be binding upon and inure to the benefit of the undersigned and its successors and permitted assigns as if it were an original party to the Agreement.

 

IN WITNESS WHEREOF, the undersigned has executed this instrument on this [·] day of [·], 20[·].

 

	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

Address for purposes of Section 3.02 of the Agreement:Exhibit 10.3

 

FORM OF

 

TRANSITION SERVICES AGREEMENT

 

AGREEMENT made as of the [·] day of [·], 2018,

 

	
BY AND BETWEEN:
    	
 
    	
CANADIAN IMPERIAL BANK OF COMMERCE, a   bank governed by the Bank Act (Canada)   having its head office in Toronto, Ontario
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(“CIBC”)
    
	
 
    	
 
    	
 
    
	
AND:
    	
 
    	
FIRSTCARIBBEAN INTERNATIONAL BANK LIMITED, a   company   incorporated under the laws of Barbados, having its registered address   situate at Head Office, Warrens in St. Michael, Barbados
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(“FCIB”)
    

 

Certain capitalized terms used herein are defined in Section 1.1 hereof.

 

WHEREAS, CIBC, through its subsidiary, CIBC Investments (Cayman) Limited (“CICL”), is the indirect owner of 91.67% of the issued and outstanding common stock of FCIB;

 

WHEREAS, it is anticipated that, following the date hereof, CICL will sell a portion of its shares of FCIB to the public pursuant to an offering on the New York Stock Exchange that will be registered with the U.S. Securities and Exchange Commission (the “IPO”);

 

WHEREAS, after the completion of the IPO, CIBC, indirectly through CICL, will remain the majority shareholder of FCIB, subject to future sales of FCIB shares by CICL;

 

WHEREAS, immediately prior to the date hereof, CIBC has provided Services (as defined below) to FCIB pursuant to the Cost-Reimbursement Agreement-Non-Regulatory dated February 5, 2013 and the Cost-Reimbursement Agreement dated February 5, 2013 between CIBC and FCIB (collectively, the “ICAs”);

 

WHEREAS, immediately prior to the date hereof, certain Third-Party Providers (as defined below) have provided Services to FCIB pursuant to agreements between CIBC and such Third-Party Providers (the “Third-Party Provider Agreements”); and

 

WHEREAS, the Parties wish to restate the ICAs in accordance with this Agreement in order to provide for (i) the continued provision of the Services, directly or through the Third-Party Providers, as applicable, during a transition period and (ii) to provide for CIBC’s provision of support to FCIB in connection with the transitioning of such Services to FCIB, to other third-party providers or to new agreements between FCIB and existing Third-Party Providers, as applicable, subject to and in accordance with the terms and conditions of this Agreement.

 

NOW, THEREFORE, in consideration of the rights and duties set forth herein, and for other

 

 

good and valuable consideration, the adequacy and sufficiency of which are hereby acknowledged, CIBC and FCIB hereby agree as follow:

 

ARTICLE I

 

DEFINITIONS

 

1.1                               Definitions. For the purposes of this Agreement or any notice, consent, request, authorization, permission, direction or other communication required or permitted to be given under this Agreement, the following words and phrases have the following meanings, respectively, unless the context otherwise requires:

 

(a)                                 “50% Date” means the first date on which CIBC ceases to indirectly own at least 50% of the outstanding common stock of FCIB;

 

(b)                                 “Accessing Party” has the meaning set forth in Section 12.5(a);

 

(c)                                  “Action” means any demand, action, suit, countersuit, arbitration, inquiry, proceeding or investigation by or before any Governmental or Regulatory Authority or any federal, state, local, foreign or international arbitration or mediation tribunal;

 

(d)                                 “Affiliate” means any present or future entity which, either directly or indirectly, or through one or more intermediaries, controls, is controlled by or is under common control of or with a Party to this Agreement; provided, however, that for the purposes of this Agreement, no member of FCIB Group shall be considered an Affiliate of CIBC and none of CIBC or its Affiliates (in accordance with the foregoing) shall be deemed Affiliates of any FCIB Group member;

 

(e)                                  “Agreement” means this Transition Services Agreement, the Schedules and all Appendices attached to this Agreement as this Transition Services Agreement, the Schedules and such Appendices may be amended or supplemented from time to time in accordance herewith; “Article”, “Section”, “Subsection” or other subdivision of this Agreement means and refers to the specified Article, Section, Subsection or other subdivision of this Agreement;

 

(f)                                   “Appendices” has the meaning set forth in Section 18.6;

 

(g)                                  “Applicable Laws” means all present and future laws, statutes, regulations, treaties, judgments and decrees relating to this Agreement, and all applicable requirements, requests, official directives, rules, consents, approvals, authorizations, guidelines, orders and policies of any Governmental or Regulatory Authority having authority over CIBC or members of the FCIB Group, the Services or this Agreement, including without limitation all applicable anti-money laundering laws;

 

(h)                                 “Business Continuity Plan” has the meaning set forth in Section 9.1;

 

(i)                                     “Business Day” means any day other than a Saturday, Sunday, or other day on which the principal commercial banks in Toronto, Ontario and Bridgetown, Barbados are closed for

 

2

 

business during normal banking hours;

 

(j)                                    “Caribbean Region” means Anguilla, Antigua and Barbuda, Aruba, Bahamas, Barbados, British Virgin Islands, Cayman Islands, Curacao, Dominica, Grenada, Jamaica, St. Eustatius, St. Kitts and Nevis, St. Maarten, St. Lucia, St. Vincent and the Grenadines, the Turks and Caicos Islands, and Trinidad and Tobago;

 

(k)                                 “Caribbean Banking Regulator” means the central bank or a similar regulatory authority in one or more countries in the Caribbean Region;

 

(l)                                     “CIBC” has the meaning set forth in the preamble;

 

(m)                             “CIBC Indemnified Party(ies)” has the meaning set forth in Section 11.1;

 

(n)                                 “CIBC Project Leader” has the meaning set forth in Section 3.1(a);

 

(o)                                 “CICL” has the meaning set forth in the preamble;

 

(p)                                 “Continuing Arrangements” has the meaning set forth in Section 2.11(a);

 

(q)                                 “Confidential Information” means any and all Information of a Party, or with regard to CIBC, that of its Affiliates, and with regard to FCIB, that of the FCIB Group members, or customers, clients, licensors or third party service providers of the foregoing (“Disclosing Party”)) that has or will come into the possession or knowledge of the other Party, or with regard to CIBC, its Affiliates, and with regard to FCIB, the FCIB Group members (“Receiving Party”), in connection with or as a result of entering into this Agreement, in whatever form (including Personal Data), whether in oral, tangible or in documented form, excluding Information that is: (1) or becomes available to the public other than as a result of a disclosure by a Receiving Party in violation of this Agreement; (2) independently developed by the Receiving Party without any use of or reference to the Confidential Information of the Disclosing Party; or (3) received by the Receiving Party in good faith without an obligation of confidence of any kind from a third party (unless and until the Receiving Party has reason to believe that such Information is, was or becomes subject to an obligation of confidence of any kind); provided that all Personal Data constitutes Confidential Information under this Agreement;

 

(r)                                    “Claim” means any actual, threatened or potential civil, criminal, administrative, regulatory, arbitral or investigative demand, allegation, action, suit, investigation or proceeding or any other Claim or demand;

 

(s)                                   “Content” means all text, graphics, animation, audio and digital video components, other than the Software, that is either (i) created by CIBC pursuant to the terms of this Agreement for FCIB Group members pursuant to the Services or (ii) that is proprietary to the FCIB Group members and provided to CIBC by FCIB including, but not limited to, any data, marketing plans, hypertext-link, and HTML text;

 

(t)                                    “Cost Reimbursement Method” means reimbursement of CIBC for all reasonable costs, disbursements and expenses incurred in performing or procuring the Services under this

 

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Agreement, including the costs associated with Personnel at the rates set forth in the Rate Card;

 

(u)                                 “Data Protection Laws” shall mean all Applicable Laws relating to data protection or privacy (including Applicable Laws relating to the confidentiality, collection, use, handling, processing, security, protection, transfer or free movement of personally identifiable information) relevant to a particular jurisdiction, including any country in which the Services are provided or received;

 

(v)                                 “Determination” has the meaning set forth in Section 4.2;

 

(w)                               “Disabling Procedures” has the meaning set forth in Section 12.5(c);

 

(x)                                 “Disclosing Party” has the meaning set forth in the definition of “Confidential Information”, above;

 

(y)                                 “Dispute” means any dispute, controversy, difference or Claim arising out of or in connection with this Agreement or the subject matter of this Agreement, including any questions concerning its existence, formation, validity, interpretation, performance, breach, expiration and termination;

 

(z)                                  “Effective Date” has the meaning set forth in Section 10.1;

 

(aa)                          “Executive Steering Committee” has the meaning set forth in Section 3.2(a);

 

(bb)                          “FCIB” has the meaning set forth in the preamble;

 

(cc)                            “FCIB Group” means collectively FCIB and its subsidiaries and branches located in the Caribbean Region on the Effective Date (and which, for clarity, excludes any businesses acquired (by purchase of assets, equity, or otherwise) by FCIB or any FCIB subsidiary after the Effective Date;

 

(dd)                          “FCIB Indemnified Party(ies)” has the meaning set forth in Section 11.2;

 

(ee)                            “FCIB Project Leader” has the meaning set forth in Section 3.1(a);

 

(ff)                              “FCIB Senior Management” means FCIB’s Board of Directors, the Boards of Directors of FCIB’s subsidiaries located in the Caribbean Region, senior management of FCIB and/or FCIB’s subsidiaries located in the Caribbean Region and/or FCIB’s Chief Executive Officer, as applicable;

 

(gg)                            “FCIB Service Arrangements” has the meaning set forth in Section 2.11(b);

 

(hh)                          “Force Majeure” means an event or occurrence affecting CIBC or FCIB, as applicable, which is beyond CIBC’s or FCIB’s (as the case may be) reasonable control (including without limitation, acts of God or the public enemy, flood, earthquake, storm, cyclone, tornado, hurricane, lightning, fire, explosion, epidemic, war, embargoes, riot or civil disturbances, sabotage, expropriation, confiscation or requisitioning of facility, change in

 

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policy or legislation, or any failure to perform on the part of any Third-Party Provider performing a Service);

 

(ii)                                  “Granting Party” has the meaning set forth in Section 12.5(a);

 

(jj)                                “Governmental or Regulatory Authority” means any national, provincial, state, county, municipal, quasi-governmental or self-regulatory department, authority, organization, agency, commission, board, tribunal, dispute settlement panel or body, bureau, official, minister, crown corporation, or court or other law, rule or regulation-making entity having jurisdiction over the Parties, the Services or this Agreement;

 

(kk)                          “Handle” or “Handling” means to receive, collect, use, store, process, record, disclose, transfer, retain, dispose of, destroy, manage or otherwise handle;

 

(ll)                                  “ICAs” has the meaning set forth in the preamble;

 

(mm)                  “Information” means material, information or data in any form or notation and however stored, fixed, expressed or embodied, if embodied in a material, tangible or electronic form, whether originals or copies;

 

(nn)                          “IPO” has the meaning set forth in the preamble;

 

(oo)                          “Law” means any federal, national, supranational, state, provincial, local or similar law (including common law), statute, ordinance, regulation, rule, code, order, treaty, license, permit, authorization, registration, approval, consent, decree, injunction, judgment, notice of liability, request for information, binding judicial or administrative interpretation or other requirement, in each case, enacted, promulgated, issued, entered or otherwise put into effect by a Governmental or Regulatory Authority;

 

(pp)                          “Liability” means any and all indebtedness, Claims, debts, taxes, liabilities, demands, causes of action, and obligations, whether accrued, fixed or contingent, mature or inchoate, known or unknown, reflected on a balance sheet or otherwise, including, without limitation, those arising under any Applicable Law, any Action or any judgment of any court of any kind or any award of any arbitrator of any kind, and those arising under any contract, commitment or undertaking;

 

(qq)                          “Losses” means any and all damages, Claims, fines, penalties, deficiencies, losses, liabilities (including settlements and judgments), costs and expenses (including interest, court costs, reasonable fees and expenses of lawyers, accountants and other experts and professionals or other reasonable fees and expenses of litigation or other proceedings or of any Claim, default or assessment);

 

(rr)                                “Master Resolution Agreement” means the Master Resolution Agreement between Canadian Imperial Bank of Commerce and certain of its Affiliates including FCIB, dated November 1, 2017, as amended from time to time;

 

(ss)                              “Month” means (i) in the case of the last month during the Term, the period commencing on the date after the last day of the previously completed month, and terminating on the

 

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date this Agreement is terminated or expires (whether this Agreement is terminated or expires at the end of the Term, any renewal term or pursuant to Article X), and (ii) in all other cases, each calendar month during the Term;

 

(tt)                                “New Service” has the meaning set forth in Section 2.3;

 

(uu)                          “Non-Control Date” means the date on which CIBC ceases to control FCIB for purposes of the Bank Act (Canada) as provided for in a written determination or approval from the Office of the Superintendent of Financial Institutions to CIBC or such earlier date as CIBC may designate in writing to FCIB;

 

(vv)                          “Omitted Services” has the meaning set forth in Section 2.2;

 

(ww)                      “Outcome” has the meaning set forth in Section 4.2;

 

(xx)                          “Parties” mean CIBC and FCIB; and “Party” means any one of them;

 

(yy)                          “Personal Data” information that is subject to Data Protection Laws;

 

(zz)                            “Personnel” means, with respect to CIBC, the employees and agents (including, but not limited to, subcontractors (if permitted by the underlying contract with respect to a Service)) of CIBC who are assigned to provide any Service provided by CIBC pursuant to this Agreement;

 

(aaa)                   “Pre-existing Content” has the meaning set forth in Section 16.5;

 

(bbb)                   “Project Leaders” has the meaning set forth in Section 3.1(a);

 

(ccc)                      “Rate Card” means that certain schedule of hourly rates for Personnel expected to perform Services hereunder sent via electronic mail by Jude Pinto to Esan Peters at [·] on [·], 2018.

 

(ddd)                   “Receiving Party” has the meaning set forth in the definition of “Confidential Information”, above;

 

(eee)                      “Records” means operating manuals, support manuals, service records, billing records and change and project records, in each case in physical or electronic form, that are (i) created, modified, maintained, or (ii) held, or (iii) created, modified, maintained and held, by CIBC in connection with the performance of Services pursuant to this Agreement;

 

(fff)                         “Replacement Service” has the meaning set forth in Section 2.4(a);

 

(ggg)                      “Representatives” means, with respect to CIBC, its Affiliates, and with respect to FCIB, the FCIB Group members , and directors, officers, employees, vendors, suppliers, providers, representatives and agents of the foregoing;

 

(hhh)                   “Schedules” has the meaning set forth in Section 2.1(b);

 

(iii)                               “Security Breach” has the meaning set forth in Section 12.5(f);

 

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(jjj)                            “Service Extension” has the meaning set forth in Section 10.3;

 

(kkk)                   “Services” means such services, including services related to transition and separation, as the Parties may from time to time agree upon and that are set out in Schedules, as the same may be amended from time to time in accordance herewith, which Services include, without limitation, services provided by Third-Party Providers pursuant to the Third-Party Provider Agreements and may include New Services, Omitted Services, and Replacement Services;

 

(lll)                               “Software” means all computer code (both source and object) including, but not limited to, all operational instructions, scripts, commands, syntax, and the literal and non-literal expressions of ideas that operate, cause, create, direct, manipulate, access or otherwise affect the Content, whether created by CIBC or licensed from third parties by CIBC including, but not limited to any copyrights, trade-marks, tradenames, trade secrets and other intellectual or industrial property rights;

 

(mmm)       “Sponsor(s)” has the meaning set forth in Section 3.3(a);

 

(nnn)                   “Systems” has the meaning set forth in Section 12.5(a);

 

(ooo)                   “Tax” or “Taxes” means all federal, state, provincial, territorial, county, municipal, local or foreign taxes, charges, fees, levies, imposts and other assessments, including all income, sales, use, goods and services, value added, capital, capital gains, alternative, net worth, transfer, profits, withholding, payroll, employer health, excise, franchise, real property and personal property taxes, and any other taxes, customs duties, fees, assessments, royalties, duties, deductions, compulsory loans or similar charges in the nature of a tax including Canada Pension Plan contributions and equivalent contributions under provincial or foreign Applicable Law, employment insurance payments and workers compensation premiums, together with any installments, and any interest, fines, penalties, or addition to tax imposed by any Governmental or Regulatory Authority, whether disputed or not;

 

(ppp)                   “Term” has the meaning set forth in Section 10.1;

 

(qqq)                   “Termination Charges” means any and all fees or expenses (which may include wind-down costs, breakage fees, early termination fees or charges, or minimum volume make-up charges) payable by CIBC or a CIBC Affiliate to any Third Party Provider pursuant to a Third-Party Provider Agreement as a result of any early termination of a Service by an FCIB Group member under Section 10.2(b) of this Agreement;

 

(rrr)                            “Third-Party Provider Agreements” has the meaning set forth in the preamble;

 

(sss)                         “Third-Party Providers” has the meaning set forth in Section 2.1(a)(2);

 

(ttt)                            “Transition Period” means, with respect to any Service, the period beginning on the Effective Date and continuing until either (i) the end date set forth on the applicable Schedule relating to such Service, if any or (ii) if no end date is specified on the applicable Schedule for such Service, the end of the Term, in each case, subject to any

 

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extension to such end date in accordance with Article X; and

 

(uuu)                   “Transition Working Group” has the meaning set forth in Section 3.1(a).

 

1.2                               Headings. The division of this Agreement into Articles, Sections, Subsections and other subdivisions and the insertion of headings are for convenience of reference only and should not affect or be used in the construction or interpretation of this Agreement.

 

ARTICLE II

 

SERVICES

 

2.1                               Provision of Services.

 

(a)                                 In accordance with the terms and subject to the conditions contained in this Agreement (including, for the avoidance of doubt, the Schedules):

 

(1)                                 CIBC shall use commercially reasonable efforts to continue providing or procure the continued provision of the Services provided directly by CIBC to or for FCIB and/or FCIB Group members immediately prior to the Effective Date, as such Services as described in the Schedules, and to provide support for the transition thereof, as and to the extent described in such Schedules; and

 

(2)                                 Subject to Sections 2.5(b), 2.6 and 16.3, CIBC shall use commercially reasonable efforts to continue providing or procure the continued provision of those Services provided under the Third-Party Provider Agreements identified on such Schedules to or for FCIB and/or FCIB Group members through one or more third party service providers and to provide support for the transition thereof, as and to the extent described therein (the “Third-Party Providers”).

 

(b)                                 The Services to be provided pursuant to this Agreement shall be set forth in various schedules, each of which will reference this Agreement and will be executed by a duly authorized officer of each of CIBC and FCIB (each, a “Schedule” and, collectively, the “Schedules”). The Parties acknowledge that they have been working together in good faith to mutually agree upon a written project plan for each of the Services identified on the Schedules. In addition to describing the Services subject thereto, each Schedule is intended to address (i) the applicable Third-Party Provider Agreement, if any, (ii) the actions CIBC and FCIB shall take to allow FCIB to replace or migrate away from the Service by the end of the Transition Period, (iii) any inter-dependence between the actions contained in any of the various Schedules, (iv) timelines for conclusion of the actions and separation activities described on the Schedules, (v) the Transition Period, (vi) names and contact particulars of Project Leaders, and (vii) any additional reasonable assistance either Party requires from the other in connection with completion of transition and separation activities described on the Schedules.

 

(c)                                  To the extent that any Schedule provides for any obligations on the part of FCIB, FCIB shall perform such obligations as set forth in such Schedule.

 

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(d)                                 Each Party shall use commercially reasonable efforts to cooperate with the other Party in all matters necessary for, or in connection with, the provision of Services under this Agreement and the Schedules.

 

2.2                               Omitted Services. Subject to Sections 2.5(b) and 16.3, in the event that FCIB reasonably requests that CIBC provide or procure the provision of any service that was provided to or procured for a FCIB Group member prior to the Effective Date and that is reasonably necessary for such FCIB Group member to carry on its business in the same form in which such business was conducted prior to the Effective Date, but is not listed on the Schedules (each, an “Omitted Service”), then:

 

(i)                                     in the event such Omitted Service is provided directly by CIBC and not through a Third-Party Provider, CIBC may continue to provide such Omitted Service, the cost for such Omitted Service to be calculated in accordance with Article IV and the Parties shall work together in good faith to enter into a written amendment to this Agreement, amending the applicable Schedule to reflect such Omitted Service, or entering into a new Schedule to reflect such Omitted Service and such amendment or new Schedule shall be deemed to be part of this Agreement and such Omitted Services shall be deemed to be part of the Services from and after the effective date of such amendment or the new Schedule;

 

(ii)                                  in the event such Omitted Service is not provided directly by CIBC, CIBC may provide or procure the provision of such Omitted Service to or for FCIB or FCIB Group members on terms to be negotiated by the Parties in good faith, the cost for such Omitted Service to be calculated in accordance with Article IV, unless such Omitted Service is readily and expeditiously available to FCIB or FCIB Group Members from a provider other than CIBC, and the Parties shall work together in good faith to enter into a written amendment to this Agreement, amending the applicable Schedule to reflect such Omitted Service, or entering into a new Schedule to reflect such Omitted Service and such amendment or new Schedule shall be deemed to be part of this Agreement and such Omitted Services shall be deemed to be part of the Services from and after the effective date of such amendment or the new Schedule;

 

(iii)                               For greater certainty, CIBC shall not be required to provide or procure the provision of any Omitted Service if it does not, in its reasonable judgment, have adequate resources to provide or procure the provision of such Omitted Service or if the provision or procurement of such Omitted Service would significantly disrupt the operations of CIBC’s or its Affiliates’ businesses.

 

Any Omitted Services for which FCIB, on behalf of itself or any FCIB Group Member, seeks provision from CIBC must be identified by notice from FCIB to CIBC no later than one hundred and eighty (180) days from the Effective Date.

 

2.3                               New Services. In the event that FCIB reasonably requests that CIBC provide or procure the provision of any service that was not provided or procured for a FCIB Group member prior to the Effective Date and that is reasonably necessary for a FCIB Group member to carry on its business in the same form in which such business was conducted prior to the Effective Date, but such service is not listed on the Schedules (each, an “New Service”), then, in the event CIBC

 

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agrees to provide such New Service (either directly or through a Third-Party Provider), the Parties shall work together in good faith to enter into a written amendment to this Agreement, amending the applicable Schedule to reflect such New Service, or entering into a new Schedule to reflect such New Service and such amendment or new Schedule shall be deemed to be part of this Agreement and such New Services shall be deemed to be part of the Services from and after the effective date of such amendment or the new Schedule.

 

2.4                               Replacement Services.

 

(a)                                 If CIBC is unable to, or unable to continue to, provide or procure the provision of any Service described or listed on any one or more of the Schedules by an event of Force Majeure, CIBC shall promptly notify FCIB and CIBC shall use commercially reasonable efforts to promptly provide to or procure for FCIB substantially equivalent services and support in accordance with the terms and conditions of the applicable Schedule, including costs in accordance with the Rate Card (such service and support, a “Replacement Service”). In the event that CIBC is required to provide or procure a Replacement Service, the Parties will reasonably cooperate in good faith to amend the applicable Schedule and will enter into an amendment to this Agreement, amending the applicable Schedule to reflect such Replacement Service, and the amendment shall be deemed to be part of this Agreement and the Replacement Service shall be deemed to be part of Services from and after the effective date of such amendment.

 

2.5                               Standard of Performance; Scope of Service.

 

(a)                                 Except as explicitly set forth in any Schedule, and provided CIBC is not restricted by an existing contract with a third party or by Applicable Law, CIBC shall continue providing or procure the continued provision of the Services it has agreed to provide or procure hereunder up to substantially the same standards of quality (including, but not limited to, performance standards and service level agreements (if any)) and availability at which such Services were provided prior to the Effective Date, and in any event, no less than the standard of quality for like services provided by CIBC to CIBC Affiliates, unless otherwise agreed to by the Parties in writing.

 

(b)                                 Notwithstanding anything to the contrary contained in this Agreement, CIBC shall not be obligated to provide or procure the provision of, or cause any of its subsidiaries to provide or procure the provision of, any Service or license to the extent the provision of such Service or license (i) would violate any agreement or license with a third party to which CIBC is subject; or (ii) would violate any Applicable Law; or (iii) is not generally provided by CIBC to CIBC Affiliates. CIBC shall use commercially reasonable efforts to make or obtain any approvals, agreements, permits, consents, waivers and licenses from any third parties that are necessary to permit CIBC to provide or procure the provision of the applicable Services and licenses under this Agreement; provided that, to the extent CIBC incurs any cost or expense in connection with obtaining any such approvals, agreements, permits, consents, waivers and licenses and provides reasonable evidence of such costs or expenses, the Parties shall work together in good faith to allocate such costs between the Parties in writing. In addition, any Services provided pursuant to a Third-Party Provider Agreement shall be subject to any limitations set forth in such Third-Party Provider Agreement between CIBC and the applicable Third-Party Provider, and FCIB

 

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shall comply with the duties, including use restrictions and nondisclosure obligations, imposed on CIBC by such Third-Party Provider Agreement.

 

2.6                               Third-Party Providers.

 

(a)                                 As specified in Section 2.1(a)(2) and subject to Section 2.6(c), CIBC shall procure the provision of the Services described on the Schedules that are, as of the Effective Date, provided by a Third-Party Provider pursuant to a Third-Party Provider Agreement. Notwithstanding anything in this Agreement to the contrary, CIBC shall use commercially reasonable efforts to cause each Third-Party Provider performing Services to adhere to the terms and conditions of the Third-Party Provider Agreement in performing such Services.

 

(b)                                 CIBC shall use commercially reasonable efforts to manage its relationships with any Third-Party Provider providing Services to a FCIB Group member hereunder.

 

(c)                                  Anything to the contrary notwithstanding, CIBC shall not be responsible for managing any aspect of any relationship with any Third-Party Provider to the extent that a member of the FCIB Group has been responsible for managing such aspect of such relationship prior to the Effective Date.

 

2.7                               CIBC’s Employees.

 

(a)                                 With respect to Services provided directly by CIBC to FCIB or FCIB Group members (as opposed to Services provided directly by or through a Third-Party Provider), CIBC shall be responsible for selecting and supervising in good faith the Personnel who will provide any particular Service and providing all administrative support with respect to such Personnel. CIBC shall be responsible for ensuring that the Personnel it selects to provide Services hereunder have all requisite licenses and qualifications required to provide such Services.

 

(b)                                 No provision of this Agreement is intended or shall be deemed to have the effect of placing the management or policies of the FCIB Group under the control or direction of CIBC, or vice versa, including the management of any Personnel.

 

2.8                               Disclaimer of Warranties. Except as otherwise expressly set forth in this Agreement, (a) CIBC specifically disclaims all warranties of any kind, express or implied, arising out of or related to this Agreement, including any implied warranties of merchantability and fitness for a particular purpose, with respect to the Services, (b) CIBC makes no representations or warranties as to the quality, suitability or adequacy of the Services provided by CIBC or any Third Party Provider for any purpose or use and (c) no information or description concerning the Services, whether written or oral, shall in any way alter the Services to be provided under this Agreement, including the scope, level of service or other attributes with respect to any Service.

 

2.9                               Limitation on the Provision of the Services. The Services provided by CIBC to FCIB pursuant to this Agreement will be subject to the following limitations:

 

(a)                                 FCIB Oversight. All material decisions on the part of FCIB and FCIB Group members

 

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regarding the Services will be made by FCIB Senior Management or their designees at meetings held in Barbados or in the Caribbean Region in adherence with the quorum and attendance requirements described in FCIB’s by-laws and FCIB Group members’’ by-laws, or memoranda or articles of association as the case may be, and without limiting the generality of the foregoing, FCIB Senior Management will have all oversight responsibility and accountability for determining, communicating, directing, monitoring, implementing, and supervising all such Services to be performed on behalf of FCIB and the FCIB Group members by CIBC.

 

(b)                                 Not Acting as Agent of FCIB. CIBC acknowledges and agrees that it is not authorized to act as agent for FCIB or any FCIB Group member, including, without limitation, in respect of transactions with clients of FCIB or FCIB Group members and does not have any authority to, nor will this Agreement imply or extend any right to CIBC to: (i) solicit, negotiate or execute transactions with clients of FCIB or FCIB Group members as agent for FCIB and/or FCIB Group members; (ii) amend, modify or enter into an agreement in the name of FCIB or of any FCIB Group member or on behalf of FCIB or of any FCIB Group member in respect of a transaction with a client of FCIB or of any FCIB Group member; (iii) institute any legal proceedings on behalf of FCIB or of any FCIB Group member or settle any legal proceedings taken out against FCIB or any FCIB Group member or seek declaratory judgment in respect of such transactions; or (iv) represent to a client of FCIB or of any FCIB Group member that it has the authority to do any of the foregoing in respect of such transactions.

 

CIBC acknowledges that FCIB employees and all FCIB Group members’ employees will be directly supervised by and remain subordinate to management of FCIB and the applicable FCIB Group member, respectively, and CIBC has no right to provide approvals or enforce instructions to FCIB employees or FCIB Group members’ employees in respect of advice or recommendations provided by CIBC to FCIB in connection with Services performed for FCIB and/or FCIB Group members.

 

2.10                        Master Resolution Agreement. The Parties agree and acknowledge that, for so long as FCIB remains part of the “CIBC Group” within the meaning of the Master Resolution Agreement (i) the Master Resolution Agreement shall remain in effect, (ii) the Services hereunder constitute “Services” within the meaning of the Master Resolution Agreement and CIBC, in its capacity hereunder is a “Service Provider,” within the meaning of the Master Resolution Agreement, of the Services to FCIB Group members hereunder (iii) this Agreement and the provision of the Services hereunder are, and shall be, subject to the Master Resolution Agreement in all respects and (iv) in the event of any conflict between the terms of this Agreement and the terms of the Master Resolution Agreement, the terms of the Master Resolution Agreement shall control.

 

2.11                        Certain Additional Arrangements.

 

(a)                                 Appendix A hereto sets forth certain agreements and arrangements pursuant to which CIBC and/or its Affiliates provide services to members of the FCIB Group as of the Effective Date (collectively, “Continuing Arrangements”).  The Parties agree that, except as otherwise provided on Appendix A (i) such Continuing Arrangements shall,

 

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subject to the remaining provisions of this Section 2.11(a), remain in effect in accordance with their terms (in the case of those Continuing Arrangements subject to contract) or in accordance with the Parties’ past practice (in the case of those Continuing Arrangements not subject to contract); and (ii) during the period from the Effective Date until October 31, 2018, the Parties will mutually evaluate each Continuing Arrangement and determine whether to continue such Continuing Arrangement in accordance with their terms, terminate such Continuing Arrangement or modify such Continuing Arrangement; provided, however, if the Parties have not reached such determination with respect to any Continuing Arrangement by October 31, 2018, such Continuing Arrangement shall terminate and the Parties shall execute, or cause their applicable Affiliate to execute, such further agreement(s) or instrument(s) as may be necessary to effect such termination.

 

(b)                                 Appendix B hereto sets forth certain agreements and arrangements pursuant to which members of the FCIB Group provide services to certain Affiliates of CIBC as of the Effective Date (collectively, “FCIB Service Arrangements”).  The Parties agree that (i) such FCIB Service Arrangements shall, subject to the remaining provisions of this Section 2.11(b), remain in effect in accordance with their terms (in the case of those FCIB Service Arrangements subject to contract) or in accordance with the Parties’ past practice (in the case of those FCIB Service Arrangements not subject to contract); (ii) following the Effective Date, the Parties will take such actions in furtherance of the discontinuance or transition of such FCIB Service Arrangements as are specified on Appendix B.

 

ARTICLE III

 

GOVERNANCE

 

3.1                               Transition Working Groups.

 

(a)                                 For each Service listed on the Schedules, CIBC and FCIB have established a joint transition working group (each, a “Transition Working Group”), which is comprised of at least (i) one (1) project leader from CIBC, who shall have authority to act on CIBC’s behalf with respect to the Service (the “CIBC Project Leader”) and (ii) one (1) project leader from FCIB, who shall have authority to act on FCIB’s behalf with respect to the Service (the “FCIB Project Leader”) and together with the CIBC Project Leader, the “Project Leaders”). The Project Leaders may appoint additional employees of CIBC or FCIB with specific knowledge of and familiarity with the requirements of the Service to the applicable Transition Working Group.

 

(b)                                 Each Transition Working Group’s primary responsibilities include:

 

(1)                                 monitoring and coordinating the provision and receipt of the Service;

 

(2)                                 managing any issues arising from the Service, including, but not limited to, using commercially reasonable efforts to resolve Disputes with respect to the Service, including Disputes involving invoices and the provision of Replacement Services, Omitted Services and/or New Services (if any); and

 

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(3)                                 overseeing the Parties’ progress in transferring from the Service, including, but not limited to, ensuring that CIBC and its Affiliates and FCIB and FCIB Group members, respectively, are taking the actions described on the Schedules and achieving key milestones in order to replace or migrate away from the Service by the end of the Transition Period.

 

(c)                                  Each Transition Working Group will meet in person or through teleconference at the frequency set out in each applicable Schedule or otherwise at a frequency agreed upon by the Parties, acting reasonably, during the Transition Period of the Service to discuss any matters relating to the Services for which it is responsible.

 

(d)                                 Each of CIBC and FCIB shall have the right at any time to replace its Project Leader by advising the other Party in writing (including by email) of such replacement.

 

3.2                               Executive Steering Committee.

 

(a)                                 CIBC and FCIB will establish an executive steering committee (the “Executive Steering Committee”), which shall comprise (i) one (1) member of executive management with decision-making authority from CIBC, being as of the Effective Date, Jude Pinto or his or her designate and (ii) one (1) member of executive management with decision-making authority from FCIB, being as of the Effective Date, Esan Peters or his designate.

 

(b)                                 To the extent a Transition Working Group is unable to agree on a course of action with respect to a decision or Dispute arising under a Service, the Transition Working Group shall promptly notify the Executive Steering Committee in writing (including by email) and the Executive Steering Committee will meet, in person or through teleconference, to address such decision or Dispute; provided that the Executive Steering Committee shall, as promptly as practicable but in no event later than fifteen (15) Business Days after receiving notice from the Transition Working Group, convene a meeting (which may be by telephone) after receiving written notice (including by email) from the Transition Working Group that a decision or resolution of a Dispute is needed with respect to a Service. The Executive Steering Committee shall use commercially reasonable efforts to make such required decision or resolve such Dispute by unanimous agreement. To the extent the Executive Steering Committee deems it appropriate, the Executive Steering Committee may consult with and consider input from the Transition Working Group in coming to any decision or resolving any Dispute with respect to a Service. To the extent the Executive Steering Committee is unable to agree on a course of action with respect to a decision or Dispute arising under a Service, the Executive Steering Committee, it shall proceed in accordance with Section 3.3

 

(c)                                  Each of CIBC and FCIB shall have the right at any time, and from time to time, to replace its executive management member of the Executive Steering Committee by advising the other Party in writing (including by email) of such replacement.

 

3.3                               Senior Executive Sponsors.

 

(a)                                 Each of CIBC and FCIB will appoint a sponsor (the “Sponsor(s)”) which shall be (i) a senior executive with decision making authority from CIBC, being as of the Effective

 

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Date, Kevin Patterson or his designate and (ii) a senior executive with decision making authority from FCIB, being as of the Effective Date, Gary Brown or his designate.

 

(b)                                 To the extent the Executive Steering Committee is unable to agree on a course of action with respect to a decision or Dispute arising under a Service, the Executive Steering Committee shall immediately notify the Sponsors in writing (including by email) and the Sponsors will meet, in person or through teleconference, to address such decision or Dispute; provided that the Sponsors shall, as promptly as practicable but in no event later than fifteen (15) Business Days after receiving notice from the Executive Steering Committee, convene a meeting after receiving written notice (including by email) from the Executive Steering Committee that a decision or resolution of a Dispute is needed with respect to a Service. The Sponsors shall use their commercially reasonable efforts to make such required decision or resolve such Dispute. To the extent the Sponsor deems it appropriate, the Sponsor may consult with and consider input from the Executive Steering Committee in coming to any decision or resolving any Dispute with respect to a Service.

 

(c)                                  Each of CIBC and FCIB shall have the right at any time, and from time to time, to replace its Sponsor by advising the other Party in writing (including by email) of such replacement.

 

3.4                               Board Reporting.  The Parties agree that they will work together to update FCIB’s board of directors on a quarterly basis regarding the Parties’ progress in achieving the key milestones that are required in order for FCIB to migrate away from each Service by the end of its Transition Period.

 

ARTICLE IV

 

COSTS, DISBURSEMENTS AND EXPENSES

 

4.1                               Costs, Disbursements and Expenses. Unless otherwise specified in the applicable Schedule, FCIB will reimburse CIBC in connection with the Services in accordance with the Cost Reimbursement Method and as provided in the applicable Schedule or as may be otherwise agreed to by the Parties, in writing, from time to time. The amounts payable for the Services under a Schedule shall be computed on a monthly basis unless otherwise set out in such Schedule.

 

4.2                               The Parties have determined that the Cost Reimbursement Method represents the most appropriate transfer pricing methodology under the circumstances. The transfer pricing methodology will be reviewed not less than once each fiscal year to ensure that it reflects an arm’s length transfer price. The Parties agree that should a taxing authority of any competent jurisdiction determine that the amount payable for any of the Services does not accurately reflect the arm’s length transfer price of such Service (the “Determination”), and

 

(a)                                 no affected Party objects to or appeals the Determination;

 

(b)                                 the affected Parties and the relevant taxing authority or authorities agree upon an arm’s length transfer price for such Service in final settlement of a dispute regarding the

 

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Determination; or

 

(c)                                  a court or tribunal of competent jurisdiction issues a final judgment or ruling confirming a Determination in whole or in part,

 

then the transfer price shall be increased or decreased to reflect such Determination, settlement, judgment or ruling (collectively, “Outcome”). Notwithstanding the foregoing, any transfer pricing increase or decrease made to reflect such an Outcome may or may not require a cash payment, in the discretion of CIBC, provided however that:

 

(a)                                 no payment may be required unless the Outcome was pursuant to a Determination settlement, judgment or ruling made by a taxing authority of Canada;

 

(b)                                 any such payment shall not exceed the actual Liability of the affected Party in respect of Taxes resulting from the additional income or profits imputed by the relevant Outcome to which the payment relates; and

 

(c)                                  the payments required under this Section 4.2 shall not collectively exceed three million United States Dollars ($3,000,000).

 

4.3                               Invoicing and Payment. CIBC shall provide FCIB with monthly invoices for the amounts due under this Agreement, which shall be paid by FCIB within forty-five (45) days after receipt of the invoices. Each invoice shall specify the Schedule(s) and Services to which the invoiced amounts thereon relate, including whether such Service is project-related or ongoing.

 

4.4                               Disputed Charges; Request for Information. FCIB agrees to pay all amounts due which are not disputed in good faith on the due date. In the event that FCIB disputes in good faith:

 

(i)                                     any amounts previously paid by FCIB it shall, within ninety (90) days of payment, or

 

(ii)                                  a particular invoiced amount it shall, within fourteen (14) days before the due date for payment,

 

provide CIBC with a statement setting out the particular invoice, the amount disputed, the reasons why FCIB is disputing the invoiced amount and request CIBC to provide documentation to verify the invoiced amount. During the investigation process and until the determination of the dispute, with regard to any unpaid invoice FCIB may withhold the payment of that particular invoiced amount. Upon conclusion of the investigation process and determination of the dispute, in the event (i) FCIB has overpaid any amount to CIBC, FCIB may set off that amount against any amounts payable pursuant to any then current or future invoice payable to CIBC, or (ii) the particular invoiced amount is incorrect, CIBC shall cancel the invoice and issue a corrected invoice.

 

4.5                               Taxes.

 

(a)                                 The Parties will cooperate with each other to enable each Party to determine its Liabilities in respect of Taxes accurately and to reduce such liabilities to the extent permitted by Applicable Law. Without limiting the generality of the foregoing, each Party will provide

 

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to the other any resale certificates, exemption certificates, information regarding out-of-province or out-of-country use of equipment and services, and such other similar Information as the other Party may reasonably request.

 

(b)                                 FCIB shall be responsible for all Taxes applicable to the Services. If FCIB is compelled to deduct or withhold any Taxes from the payments for amounts due under this Agreement, FCIB will pay to CIBC such additional amounts as are necessary to ensure receipt by CIBC of the full amount which CIBC would have received but for the deduction or withholding; provided, that CIBC will use commercially reasonable efforts to cooperate with FCIB and its advisors, as applicable, to mitigate, reduce or eliminate such deduction or withholding; and provided further, that should CIBC receive a refund (whether by way of payment, credit, offset or reduction in Liability with respect to Taxes) for any Taxes for which it has been grossed-up pursuant hereto, CIBC shall promptly pay to FCIB an amount equal to such refund.

 

ARTICLE V

 

RECORDS

 

5.1                               Records. During the Term of this Agreement, CIBC agrees that it will take reasonable action to hold copies of all Records, and that it will safeguard all such Records using the same standard of care that CIBC would use to protect its own similar information.

 

5.2                               Return of Information.  Upon the cessation or termination of a particular Service, CIBC will promptly return to FCIB all Records relating to such Service retained by CIBC pursuant to Section 5.1 and specified FCIB, unless otherwise directed by FCIB in writing.

 

5.3                               Access to Records. Upon the request of a Governmental or Regulatory Authority or a Caribbean Banking Regulator having jurisdiction over FCIB, or upon FCIB’s request and then at FCIB’s own expense, CIBC will deliver the Records and other Information relating to the Services performed by CIBC pursuant to this Agreement to FCIB and requested by FCIB, in a format reasonably acceptable to FCIB. In addition, CIBC shall cooperate with FCIB in determining what Records and Information CIBC may have that may be relevant to such request.  Upon CIBC’s request and at CIBC’s own expense, FCIB Group members will deliver such copies of data, records, reports, documents and other Information relating to the Services and this Agreement as CIBC may reasonably require in connection with its performance of this Agreement in a format reasonably acceptable to CIBC.

 

5.4                               Destruction of Records. Subject to prior satisfaction of its obligations pursuant to Section 5.2 hereof, and unless prohibited from doing so by Applicable Law, CIBC will destroy or otherwise dispose of all data, records, (including Records), reports, documents and other Information relating to the Services performed by directly by CIBC pursuant to this Agreement in accordance with CIBC’s record retention policies.

 

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ARTICLE VI

 

REPRESENTATIONS AND WARRANTIES

 

6.1                               Representations, Warranties and Covenants of CIBC. CIBC represents, warrants and covenants to and in favour of FCIB that:

 

(a)                                 CIBC has all necessary power, capacity and authority to enter into this Agreement;

 

(b)                                 CIBC has taken all necessary action to authorize the execution, delivery and performance of this Agreement;

 

(c)                                  this Agreement has been duly executed and delivered by CIBC and is a valid and binding obligation of CIBC enforceable against it in accordance with its terms, subject, as to enforcement, to bankruptcy, insolvency and other legislation affecting creditors’ rights generally; and

 

(d)                                 CIBC will comply with, and be responsible for compliance of CIBC Affiliates with, all Applicable Laws in the exercise of CIBC’s rights and performance of CIBC’s obligations under this Agreement.

 

6.2                               Representations, Warranties and Covenants of FCIB. FCIB represents, warrants and covenants to and in favour of CIBC that:

 

(a)                                 FCIB has all necessary power, capacity and authority to enter into this Agreement;

 

(b)                                 FCIB has taken all necessary action to authorize the execution, delivery and performance of this Agreement;

 

(c)                                  this Agreement has been duly executed and delivered by FCIB and is a valid and binding obligation of FCIB enforceable against it in accordance with its terms, subject, as to enforcement, to bankruptcy, insolvency and other legislation affecting creditors’ rights generally; and

 

(d)                                 FCIB will comply with, and be responsible for compliance of FCIB Group members with, all Applicable Laws in the exercise of FCIB’s rights and performance of FCIB’s obligations under this Agreement.

 

ARTICLE VII

 

FORCE MAJEURE

 

7.1                               Notice of an Event of Force Majeure. If either Party is prevented from, or delayed in performing any of its obligations under this Agreement by an event of Force Majeure, the Party claiming the event of Force Majeure will promptly notify the other Party by telephone (which does not include, for greater certainty, leaving a voicemail message), and by follow-up written notice within three (3) Business Days of such Party becoming aware of the potential nonperformance or delay, of the particulars of the event of Force Majeure including reasonable details of the nature of the event, its expected duration and the obligations under the Agreement that will be affected by the event. The Party claiming the event of Force Majeure will continue to furnish reasonable reports with respect to the Force Majeure to the other Party on a timely basis prior to and during the continuance of the event of Force Majeure.

 

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7.2                               Commercially Reasonable Efforts to Mitigate. The Party claiming the event of Force Majeure will, during the continuance of such event of Force Majeure, use commercially reasonable efforts to mitigate and minimize the effects of such event of Force Majeure, to reduce and minimize any ensuing delay or interruption in the performance of its obligations under this Agreement, and to recommence performance of its obligations under this Agreement whenever and to whatever extent possible without delay. For greater certainty, where an event of Force Majeure affects performance of the obligations of both Parties under this Agreement, both Parties may claim the same event of Force Majeure for the purpose of this Article VII.

 

7.3                               Consequences of an Event of Force Majeure. Subject to the limitations set out below, during the occurrence of an event of Force Majeure, the obligations of the Party claiming an event of Force Majeure, to the extent that its obligations cannot be performed or are delayed as a result of such event of Force Majeure, will be suspended, and such Party will not be considered to be in breach or default under this Agreement, for the period of such occurrence. No obligation of either Party that existed prior to the event of Force Majeure causing the suspension of performance will be excused as a result of the Force Majeure, unless such obligation is a continuing obligation the performance of which is affected by the event of Force Majeure.

 

7.4                               Establishing an Event of Force Majeure. The Party claiming that an event of Force Majeure has occurred will bear the burden of proving the existence of such event of Force Majeure and the consequences of the event.

 

7.5                               Termination following an Event of Force Majeure. If performance of CIBC’s obligations under this Agreement is not resumed within thirty (30) days (or such longer period as may be agreed, in writing, by the Parties) after the occurrence of the event of Force Majeure FCIB may terminate all of the Services or a specified Service(s) immediately by written notice to CIBC.

 

ARTICLE VIII

 

AUDIT

 

8.1                               Audit.

 

(a)                                 Once in each twelve (12) month period of the Term FCIB may provide CIBC with reasonable written notice that it requires its independent auditors to conduct an audit of CIBC’s processes, operations, systems and management controls relevant to the performance of the Services provided by CIBC under this Agreement. CIBC may require FCIB’s independent auditors to execute a non-disclosure agreement in a form acceptable to CIBC prior to carrying out the audit.

 

(b)                                 At any time during the Term, the Governmental or Regulatory Authorities having jurisdiction over FCIB will have the right, at any time required by such Governmental or Regulatory Authorities, to audit the performance by CIBC of its obligations under this Agreement, and CIBC will cooperate promptly with such an audit request.

 

(c)                                  At any time during the Term, the Governmental or Regulatory Authorities having jurisdiction over CIBC will have the right, at any time required by such Governmental or

 

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Regulatory Authorities, to audit the performance by FCIB of its obligations under this Agreement, and FCIB will cooperate promptly with such an audit request.

 

8.2                               Assistance. Subject to this Article VIII, CIBC shall arrange for FCIB’s auditors to have access to CIBC’s premises and any necessary documentation and Information and for employees to reasonably cooperate with such audit.

 

8.3                               Limitations. FCIB’s independent auditors shall only have the right to access the information of FCIB and information relating to the Services provided directly by CIBC to FCIB, and FCIB’s independent auditors shall not access any other information of CIBC or its Affiliates or any of CIBC’s other customers without the express written consent of CIBC (which consent may be withheld in CIBC’s sole discretion).

 

8.4                               Costs. All costs and expenses of any audit conducted pursuant to this Article VIII shall be borne by the Party requesting such audit or, in the case of an audit by a Governmental or Regulatory Authority, the Party regulated by such Governmental or Regulatory Authority and the Party responsible for such costs and expenses shall promptly reimburse the audited party for its documented out-of-pocket costs and expenses incurred in relation to such audit.

 

ARTICLE IX

 

BUSINESS CONTINUITY PLAN

 

9.1                               Business Continuity Plan. CIBC shall be responsible for having a documented and tested disaster recovery plan (“Business Continuity Plan”) for a Service, if specified in the Schedule to which such Service relates. CIBC shall provide to FCIB at its reasonable request for the purpose of responding to questions concerning any CIBC Business Continuity Plan, one or more representatives who are knowledgeable and experienced about the Business Continuity Plan, the manner in which it is tested and the manner in which it would be implemented if a disaster occurred.

 

ARTICLE X

 

TERM AND TERMINATION

 

10.1                        Effectiveness; Term. This Agreement shall become effective upon the date on which the IPO is completed (the “Effective Date”) and will continue until the end of the three (3) year period following the Effective Date (the “Term”), unless earlier terminated in accordance with this Article X. Except as otherwise provided in the Schedule applicable to a particular Service, such Service will be provided for the duration of the applicable Transition Period, until such time as such Service is terminated prior to the expiration of the Transition Period in accordance with Section 10.2(b), or until the end of the Term, whichever is earlier.

 

10.2                        Termination.

 

(a)                                 Subject to Section 2.9, this Agreement may be terminated prior to the end of the Term:

 

(1)                                 By CIBC or FCIB immediately upon the material breach of this Agreement by the

 

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other Party if such material breach is capable of being cured and is not cured by the breaching Party within thirty (30) days after written notice thereof to the breaching Party;

 

(2)                                 By either Party if required by Applicable Law or Governmental or Regulatory Authority having jurisdiction over such Party;

 

(3)                                 Upon the mutual written agreement of the Parties; or

 

(4)                                 By either Party upon written notice to the other Party upon the expiration of all Transition Periods hereunder.

 

(b)                                 Subject to Section 10.2(c), any particular Service (including any Omitted Service, Replacement Service and/or New Service) provided pursuant to this Agreement may be terminated prior to the end of the applicable Transition Period by FCIB, as long as FCIB provides CIBC written notice of such termination at least ninety (90) days prior to any such termination; further provided that FCIB will be responsible for Termination Charges (if any) associated with FCIB’s termination of any Services under this Section 10.2(b).

 

(c)                                  If FCIB elects to terminate any particular Service pursuant to Section 10.2(b), and CIBC reasonably determines and provides FCIB or FCIB Group members with written notice prior to the termination of such Service that such termination will adversely affect the ability of CIBC to provide any other Service or portion of any other Service in any material respect, the Parties shall negotiate in good faith to amend the applicable Schedule relating to such affected continuing Service. If the Parties enter into an amendment to this Agreement amending the applicable Schedule to reflect the affected Service, such amendment shall be deemed to be part of this Agreement and the Services shall be amended from and after the effective date of such amendment. Each of CIBC and FCIB agree to each use commercially reasonable efforts to minimize the impact of the termination of any Service on the remainder of this Agreement.

 

10.3                        Extension of Transition Period. In connection with the termination of any Service, if FCIB reasonably determines that it will require such Service to continue beyond the applicable Transition Period, FCIB may request that CIBC extend such Service (any such extension, a “Service Extension”) for a period of up to one hundred eighty (180) days beyond the scheduled termination of such Service by written notice to CIBC no less than thirty (30) days prior to the date of such scheduled termination, and CIBC shall consider any such request in good faith; provided, however, that (i) if one (1) or more Service Extensions have been made prior to the 50% Date, no further Service Extension shall be permitted following the 50% Date other than pursuant to an amendment to this Agreement in accordance with Section 18.8; and (ii) no Party shall be obligated to agree to any Service Extension, including because, after good-faith negotiations between CIBC and FCIB, CIBC and FCIB fail to reach an agreement with respect to the terms thereof or because CIBC is not permitted pursuant to Applicable Law to provide the applicable Service; provided, further, that CIBC shall not be obligated to provide such Service Extension if a third-party consent is required and cannot be obtained by CIBC, using commercially reasonable efforts.  In no event will CIBC be required to provide Services to FCIB where the provisions of such Services may result in violation by CIBC of the terms and

 

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conditions of the underlying Third Party Provider Agreement.  In the event that CIBC agrees to provide a Service Extension, the Parties will reasonably cooperate in good faith to revise the applicable Schedule and will enter into an amendment to this Agreement, amending the applicable Schedule to reflect such Service Extension, including any adjustments to the compensation owed to CIBC during the proposed extension, and such Service Extension shall be deemed to be part of this Agreement and the Services from and after the effective date of such amendment.

 

10.4                        Effect of Termination or Expiration.

 

(a)                                 In the event of the expiration or termination of this Agreement as provided in this Article X, the provisions of this Agreement requiring performance or fulfilment after the expiration or termination of this Agreement, including this Section 10.4, Article I, Section 2.8 (Disclaimer of Warranties), Section 4.5 (Taxes) Article V, Article XI, Article XII, Article XIII, Article XVI (except Section 16.3) and Article XVIII, shall survive the expiration or termination (as the case may be) of this Agreement. Upon the expiration or termination of this Agreement, CIBC shall have no further obligation to provide, or cause to be provided, any of the Services, and FCIB shall promptly pay all costs, expenses and fees (including Termination Charges, if any) in respect of Services provided prior to the expiration or termination of this Agreement (which costs shall be pro-rated where possible). The expiration or termination of this Agreement will not terminate, affect or impair any rights, obligations, or liabilities of any Party that have accrued prior to the effective date of such expiration or termination or which under the terms of this Agreement continue after expiration or termination.

 

(b)                                 Upon the termination or expiration of any Service pursuant to this Agreement, CIBC shall have no further obligation to provide, or cause to be provided, such Service, and FCIB and FCIB Group members shall promptly pay all costs, expenses and fees properly due in respect of such Service prior to the termination of this Agreement (which costs shall be pro-rated where necessary). The termination or expiration of any Service will not terminate, affect or impair any rights, obligations, or liabilities of any Party that have accrued prior to the effective date of such termination or expiration which under the terms of this Agreement continue after termination or expiration.

 

ARTICLE XI

 

LIABILITY AND INDEMNIFICATION

 

11.1                        FCIB Indemnification of CIBC.   Subject to Sections 11.3, 11.4 and 11.5, FCIB shall indemnify, defend and hold CIBC and its Affiliates and each of their respective, directors, officers and employees (collectively, the “CIBC Indemnified Parties”), harmless from and against any and all Losses arising in connection with this Agreement.  The foregoing shall constitute FCIB’s sole and exclusive monetary Liability with respect to this Agreement.  Notwithstanding anything to the contrary in this Agreement, CIBC hereby waives and releases FCIB from Liability, in contract, tort or otherwise, for all Losses incurred or suffered by the CIBC Indemnified Parties, other than any Losses that are subject to indemnification under this Section 11.1.

 

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11.2                        CIBC Indemnification of FCIB. Subject to Sections 11.3, 11.4 and 11.5, CIBC shall indemnify, defend and hold the FCIB Group members and each of their respective directors, officers and employees (collectively, the “FCIB Indemnified Party(ies)”), harmless from and against any and all Losses based upon or related to the Services performed hereunder to the extent that any such Losses were caused by the gross negligence or willful misconduct of CIBC or its Affiliates in providing any of the Services rendered or to be rendered by CIBC pursuant to this Agreement. The foregoing shall constitute CIBC’s sole and exclusive monetary Liability with respect to the Services or the failure to provide the Services. Notwithstanding anything to the contrary in this Agreement, FCIB hereby waives and releases CIBC from Liability, in contract, tort or otherwise, for all Losses incurred or suffered by the FCIB Indemnified Parties, other than any Losses that are subject to indemnification under this Section 11.2.

 

11.3                        Disclaimer.

 

(a)                                 EXCEPT TO THE EXTENT RELATING TO ANY BREACH BY CIBC OF ARTICLE XII OR SECTION 6.1(d), IN NO EVENT SHALL CIBC OR ANY OF ITS AFFILIATES BE LIABLE TO FCIB INDEMNIFIED PARTIES OR ANY THIRD PARTY FOR ANY SPECIAL, PUNITIVE, EXEMPLARY, SPECULATIVE, INDIRECT, REMOTE OR CONSEQUENTIAL DAMAGES, DAMAGES FOR LOST PROFITS OR DAMAGES BASED UPON A MULTIPLE OF EARNINGS OR DIMINUTION OF VALUE OR ANY SIMILAR DAMAGES, REGARDLESS OF WHETHER SUCH DAMAGES WERE FORESEEABLE. FCIB must notify CIBC in writing of any cause of action that may arise under or in connection with the Services or this Agreement within one (1) year after such cause of action has accrued, or FCIB shall be deemed to have waived and/or withdrawn such cause of action.

 

(b)                                 EXCEPT TO THE EXTENT RELATING TO ANY BREACH BY FCIB OF ARTICLE XII OR SECTION 6.2(d), IN NO EVENT SHALL FCIB OR ANY FCIB GROUP MEMBER BE LIABLE TO CIBC INDEMNIFIED PARTIES OR ANY THIRD PARTY FOR ANY SPECIAL, PUNITIVE, EXEMPLARY, SPECULATIVE, INDIRECT, REMOTE OR CONSEQUENTIAL DAMAGES, DAMAGES FOR LOST PROFITS OR DAMAGES BASED UPON A MULTIPLE OF EARNINGS OR DIMINUTION OF VALUE OR ANY SIMILAR DAMAGES, REGARDLESS OF WHETHER SUCH DAMAGES WERE FORESEEABLE. CIBC must notify FCIB in writing of any cause of action that may arise under or in connection with the Services or this Agreement within one (1) year after such cause of action has accrued, or CIBC shall be deemed to have waived and/or withdrawn such cause of action.

 

11.4                        Maximum Liability of the Parties.

 

(a)                                 Notwithstanding anything else herein to the contrary:

 

(1)                                 Except in relation to any breach by CIBC of Article XII or Section 6.1(d) or any Liability in respect of Taxes described in Article IV, the maximum aggregate Liability of CIBC to the FCIB Indemnified Parties for any Claim asserted under or in connection with this Agreement shall not exceed and shall be limited to the compensation actually received by CIBC from FCIB for the Services with respect

 

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to which such Claim is made during the twelve (12) Months preceding the last act or omission giving rise to such Claim or, if such last act or omission occurs during the first twelve (12) Months following the Effective Date, an amount equal to ten (10) times the compensation paid for such Services in the Month preceding such last act or omission.

 

(2)                                 Prior to the Non-Control Date, except in relation to any breach by FCIB of Article XII or Section 6.2(d), or any Liability in respect of Taxes described in Article IV, or any failure on the part of FCIB to pay any amount owing to CIBC pursuant to this Agreement, the maximum aggregate Liability of FCIB to the CIBC Indemnified Parties for any Claim asserted under or in connection with this Agreement shall not exceed and shall be limited to the compensation actually received by CIBC from FCIB for the Services with respect to which such Claim is made during the twelve (12) Months preceding the last act or omission giving rise to such Claim or, if such last act or omission occurs during the first twelve (12) Months following the Effective Date, an amount equal to ten (10) times the compensation paid for such Services in the Month preceding such last act or omission.

 

(3)                                 Each Party shall, in all circumstances, use commercially reasonable efforts to mitigate and otherwise minimize its damages and, with regard to CIBC, those of its Affiliates, and with regard to FCIB, the FCIB Group members, whether direct or indirect, due to, resulting from or arising in connection with any failure by the other Party to comply fully with its obligations under this Agreement.

 

11.5                        Exclusive Remedy.

 

(a)                                 Except for any Claims seeking equitable relief in connection with the failure of CIBC to perform its covenants or agreements hereunder, the provisions of this Article XI shall be the exclusive remedies of FCIB with respect to the subject matter of this Agreement and no FCIB Indemnified Party shall be entitled to any further indemnification, contribution, recovery or other rights or Claims of any nature whatsoever in respect thereof (whether under this Agreement or under any common law theory or any Law or otherwise), all of which FCIB (for itself and on behalf of the FCIB Indemnified Parties) hereby waives. Any and all Claims, disputes or demands by FCIB Indemnified Parties in any way related to the provision of the Services under this Agreement shall be made solely by FCIB and solely against CIBC under and in accordance with the terms and conditions of this Agreement.

 

(b)                                 Except for any Claims seeking equitable relief in connection with the failure of FCIB to perform its covenants or agreements hereunder, the provisions of this Article XI shall be the exclusive remedies of CIBC with respect to the subject matter of this Agreement and no CIBC Indemnified Party shall be entitled to any further indemnification, contribution, recovery or other rights or Claims of any nature whatsoever in respect thereof (whether under this Agreement or under any common law theory or any Law or otherwise), all of which CIBC (for itself and on behalf of the CIBC Indemnified Parties) hereby waives. Any and all Claims, Disputes or demands by CIBC Indemnified Parties in any way

 

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related to the provision of the Services under this Agreement shall be made solely by CIBC and solely against FCIB under and in accordance with the terms and conditions of this Agreement.

 

11.6                        No Right to Set Off Amounts Owed.

 

(a)                                 Regardless of any other rights under any other agreements or Applicable Law, but subject to FCIB rights pursuant to Section 4.4, no FCIB Indemnified Party shall have the right to set off the amount of any Claim it may have under this Agreement, whether contingent or otherwise, against any amount owed by such FCIB Indemnified Party to CIBC, whether under this Agreement or otherwise.

 

(b)                                 Regardless of any other rights under any other agreements or Applicable Law, no CIBC Indemnified Party shall have the right to set off the amount of any Claim it may have under this Agreement, whether contingent or otherwise, against any amount owed by such CIBC Indemnified Party to FCIB, whether under this Agreement or otherwise, against any amount owed by such CIBC Indemnified Party to FCIB, whether under this Agreement or otherwise.

 

ARTICLE XII

 

CONFIDENTIALITY

 

12.1                        Confidentiality. A Receiving Party will:

 

(a)                                 not use or reproduce Confidential Information of a Disclosing Party for any purpose, other than as and to the extent expressly permitted under this Agreement or as may be reasonably necessary for carrying out the Receiving Party’s duties, responsibilities and obligations under this Agreement;

 

(b)                                 not disclose, provide access to, transfer or otherwise make available any Confidential Information of a Disclosing Party other than for the sole purpose of carrying out the Receiving Party’s duties, responsibilities and obligations under this Agreement; and

 

(c)                                  use reasonable efforts to maintain the confidentiality and security of all Confidential Information of the other Party that the Receiving Party Handles, which efforts shall be no less than those the Receiving Party uses in relation to its own Confidential Information.

 

12.2                        Permitted Disclosure. A Receiving Party may only disclose Confidential Information of a Disclosing Party:

 

(a)                                 with prior express written consent of the Disclosing Party;

 

(b)                                 if and to the extent required by a Governmental or Regulatory Authority or otherwise as required by Applicable Laws, provided that the Receiving Party must first give notice to the Disclosing Party of such required disclosure (except where prohibited by Applicable Laws from doing so). Following receipt of such notice, the Receiving Party must, to the extent permitted by Applicable Laws, afford the Disclosing Party a reasonable

 

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opportunity to, at the Disclosing Party’s own sole cost and expense, to take such steps as it desires to challenge or contest such disclosure or seek a protective order. Thereafter, the Receiving Party may disclose the Confidential Information, but only to the extent required by Applicable Laws and subject to any protective order that applies to such disclosure;

 

(c)                                  In the event that either Party is required to disclose co-mingled Confidential Information as contemplated in Section 12.2(b), the Parties will work together in good faith to determine an appropriate response to such requirement, including by promptly designating the appropriate individuals to coordinate such assessment and working together to identify any co-mingled Confidential Information of the Parties and discussing a reasonable manner to redact or separate such co-mingled Confidential Information.

 

(d)                                 to Representatives of the Receiving Party, if and to the extent that such persons need to know such Confidential Information for the purposes of this Agreement and on the condition that such persons are subject to confidentiality provisions consistent with those provided for under this Article XII.

 

12.3                        Return of Confidential Information. Subject to the Parties’ respective record retention policies, the Parties will, at all times and upon the expiration or termination of this Agreement, promptly follow any instructions provided by the Disclosing Party for the return or destruction of Confidential Information of the Disclosing Party.  Without limiting the foregoing, promptly following the expiration or termination of any Service hereunder, the Receiving Party will return or destroy, as directed by the Disclosing Party, any Confidential Information of such Disclosing Party relating specifically to such expired or terminated Service.

 

12.4                        [Intentionally Deleted]

 

12.5                        Systems Security and Breach Notification.

 

(a)                                 If any Party or with regard to CIBC, its Affiliates, or with regard to FCIB, other FCIB Group members (as the case may be, an “Accessing Party”) has or is given access to the computer system(s), facilities, networks (including voice or data networks) or software (collectively, “Systems”) used by the other Party or with regard to CIBC, its Affiliates, and with regard to FCIB, other FCIB Group members (as the case may be, a “Granting Party”) in connection with the provision of the Services, the Accessing Party shall comply with the Granting Party’s written information security regulations (including any policies, procedures, requirements and instructions) as amended from time to time by the Granting Party, which shall be provided by the Granting Party upon execution of this Agreement and prior to the Accessing Party being granted access to the Granting Party’s Systems, and on amendment by the Granting Party as applicable.

 

(b)                                 The Accessing Party will not tamper with, compromise or circumvent any security or audit measures employed by the Granting Party. The Accessing Party shall (i) permit only those of its personnel who are specifically authorized by the Granting Party to access the Granting Party’s Systems and (ii) prohibit its personnel from permitting or

 

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causing the unauthorized destruction, alteration or loss of information (including Information), contained in the Granting Party’s Systems. In addition, a material failure to comply with the Granting Party’s security regulations shall be a breach of this Agreement, and the Parties shall work together in good faith to rectify any such failure to comply with the Granting Party’s security regulations.

 

(c)                                  The Accessing Party represents, warrants and covenants to the Granting Party that all software code, any related deliverables and any data, (including Personal Data), or information, (including Information), input into any Systems in connection with the Services does not and will not contain any program, routine, device, code, instructions (including any code or instructions provided by third parties) or other undisclosed feature, including a time bomb, virus, software lock, drop-dead device, malicious logic, worm, Trojan horse, spyware, bug, error, defect or trap door, that is capable of (or has the effect of allowing any untrusted party to be capable of) accessing, modifying, deleting, damaging, disabling, deactivating, interfering with or otherwise harming the Services or any of the Granting Party’s Systems, data, (including Personal Data), or other electronically stored information, (including Information), (collectively, “Disabling Procedures”).

 

(d)                                 Notwithstanding any other limitations in this Agreement, each Accessing Party agrees to promptly notify the Granting Party immediately upon discovery of any Disabling Procedures that are or reasonably suspected to be included in the Services or related deliverables, and if Disabling Procedures are discovered or reasonably suspected to be present therein, the Accessing Party shall promptly take all actions reasonably necessary, at its own expense, to identify and eradicate (or equip the Granting Party to identify and eradicate) such Disabling Procedures and carry out any recovery necessary to remedy any adverse impact of such Disabling Procedures.

 

(e)                                  In the event the Receiving Party has access to, control over, or custody of Confidential Information of the Disclosing Party comprising Personal Data, the Receiving Party shall establish and maintain for the duration of the Term or the duration of its access to the Personal Data, policies and procedures consistent with reasonable practice within the financial industry to protect Personal Data. Such policies and procedures shall include administrative, technical and physical safeguards that are commensurate with the scope of the Services and/or the sensitivity of the Personal Data shared by the Disclosing Party under this Agreement.

 

(f)                                   The Receiving Party shall notify the Disclosing Party within two (2) Business Days (or such shorter time as required by Applicable Law) of any incident where Confidential Information or Personal Data controlled by or located within the paper or physical files, networks, drives, cloud based solutions or other storage media or mechanism of the Receiving Party that compromises the security, confidentiality or integrity of the Disclosing Party’s Confidential Information or Personal Data (a “Security Breach”). Upon learning of any Security Breach, the Receiving Party will promptly investigate and remediate such Security Breach, and provide written updates and information regarding said investigation and remediation to the Disclosing Party on a timely and regular basis, including information sufficient to permit the Disclosing Party to understand the type of

 

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information involved, the mechanism through which the security, confidentiality and integrity of the Disclosing Party’s information was comprised and to determine whether notice to any affected individuals, corporations or groups is required. The Parties further agree to coordinate in good faith on developing the content of any public statements related to the Security Breach, and on the content of any notice required to given to affected individuals or Governmental or Regulatory Authorities under one or more Data Protection Laws.

 

(g)                                  If at any time the Granting Party determines that any personnel of the Accessing Party (and, in the case of CIBC, Personnel of CIBC) has sought to circumvent or has circumvented the Granting Party’s security regulations or other security or audit measures or that any personnel of the Accessing Party has permitted or caused an unauthorized person to access or have access to the Granting Party’s Systems, including by engaging in activities that may lead to a Security Breach, the Granting Party may immediately terminate any such person’s access to the Systems and, if such person’s access is terminated, shall immediately notify the Accessing Party.

 

ARTICLE XIII

 

GOVERNING LAW AND DISPUTE RESOLUTION

 

13.1                        Governing Law. This Agreement will be governed by and construed and enforced in accordance with the laws of the Province of Ontario and the laws of Canada applicable in the Province of Ontario, without regard to conflicts of law principles that would apply a different body of law. For the purpose of all legal proceedings, this Agreement will be deemed to have been made and performed in the Province of Ontario and the courts of the Province of Ontario will have exclusive jurisdiction to entertain any Action arising under this Agreement.

 

13.2                        Jurisdiction. The Parties attorn to the jurisdiction of the courts of the Province of Ontario with respect to any matter regarding the interpretation and application of this Agreement, and all Disputes arising under or in connection with this Agreement.

 

13.3                        Dispute. Subject to Article III, any Disputes arising in connection with this Agreement shall be resolved in good faith and amicably between the Parties. If the Parties are unable to resolve a Dispute within twenty-one (21) days of notification in writing by either Party to the other Party of such Dispute, then either Party may submit the Dispute to the Courts of the Province of Ontario. Subject to Article III, each Party agrees to continue the performance of its obligations hereunder while a Dispute is pending.

 

ARTICLE XIV

 

SUBCONTRACTING

 

14.1                        Subcontracting. Except as provided in the Schedules, CIBC shall not subcontract the whole or substantially the whole of the Services that are designated on the applicable Schedule in respect thereof as material for regulatory purposes without the prior written consent of FCIB, which shall not be unreasonably withheld. Prior to providing its written consent, FCIB shall be

 

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responsible for and shall obtain all required regulatory approvals, if any. CIBC shall use commercially reasonable efforts to assist FCIB in obtaining such required regulatory approvals, if any.

 

14.2                        Notice. Subject to Section 14.1 above, CIBC shall notify FCIB in writing of the name and business address of any subcontractor not identified in an applicable Schedule that CIBC intends to use to perform its obligations under this Agreement in accordance with Section 14.1 hereof at least ninety (90) days prior to the date the said subcontractor is to begin to perform those obligations.

 

ARTICLE XV

 

INSURANCE

 

15.1                        Insurance. For the duration of this Agreement, CIBC at its sole expense shall provide and maintain the insurance coverage set out in Section 15.2 in respect of the Services performed pursuant to this Agreement and such insurance as will protect with regard to CIBC, CIBC and its Affiliates, and with regard to FCIB, FCIB and FCIB Group members and their respective officers, employees, and agents from Claims which may arise from the Services performed under this Agreement by CIBC, a member of the CIBC group of companies, a subcontractor or Third-Party Provider or by anyone directly or indirectly employed by any of them, or by anyone for whose acts in relation to the Services CIBC may be liable.

 

15.2                        Coverage. The insurance coverage required pursuant to Section 15.1 is as follows:

 

(a)                                 Workers’ Compensation Insurance or Workplace Safety & Insurance coverage with the applicable Provincial Workplace Safety & Insurance Board or Employer’s Legal Liability for all CIBC personnel working in Canada or deployed to provide the Services in the Caribbean Region;

 

(b)                                 Commercial Crime insurance or Financial Institution Bond, for loss or damage arising out of or in connection with fraudulent or dishonest acts committed by CIBC personnel, acting alone or in collusion with others, including the property and funds of others (including FCIB) in their possession, care, custody or control, with a minimum limit per loss of not less than five million dollars ($5,000,000); and

 

(c)                                  Professional Liability insurance, covering the liability for financial loss due to any wrongful act of CIBC in the delivery of the Services including any fraud, misrepresentation, misstatement, error or omission in an amount not less than five million dollars ($5,000,000), including network security and privacy liability.

 

15.3                        Self-Manage. Notwithstanding anything to the contrary in this Agreement, CIBC may, in lieu of maintaining the insurance coverage described in Section 15.2, self-manage against all or any portion of those risks that would otherwise be covered by the policies set out in Section 15.2.

 

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ARTICLE XVI

 

INTELLECTUAL PROPERTY RIGHTS

 

16.1                        Ownership of Intellectual Property. Neither Party shall acquire any right, title or interest in or to any intellectual property rights of the other Party pursuant to this Agreement, except as provided for in this Agreement.

 

16.2                        CIBC Property. As between FCIB and CIBC, CIBC will exclusively own and retain all title, ownership rights and intellectual property rights including, patents, copyrights and trade secrets in or to all Software, operating processes and procedures, software configuration parameters, macro scripts, engineering records and designs, and any modifications or translations thereof developed or created by CIBC or its Affiliates or jointly with FCIB or FCIB Group members, or employees of any of them, in connection with performance or receipt of the Services. For greater certainty, CIBC’s rights in Software include those in both the source code and object code forms, the final version as well as all intermediate versions of the Software and all routines and subroutines, as well as all program materials, flowcharts, notes, outlines, work papers and the like, whether or not protected by copyright, which have been developed by CIBC or its Affiliates or jointly with FCIB or FCIB Group members, or employees of any of them, in the course of performing the Services. CIBC’s rights in the Software constitute Confidential Information and will be treated by FCIB and FCIB Group members in accordance with the provisions of Article XII of this Agreement. FCIB will not, and will ensure FCIB Group members and their employees and contractors do not, copy, modify, translate, disassemble, or create derivative works based on the Software or distribute, access, decompile, reverse engineer, decrypt, or disassemble any Software to access, view, create or derive the source code of any Software for the purpose of reselling, assigning or otherwise transferring any or all of the Software. This provision is not intended to restrict FCIB and FCIB Group members from accessing or revising HTML text of any Software for the purpose of maintaining, upgrading, or porting.

 

16.3                        Software License. Subject to Section 2.5(b), CIBC grants to each FCIB Group member a royalty-free, non-exclusive, non-transferable, non-assignable license to use any Software owned by CIBC that such FCIB Group member used and was authorized to use prior to the Effective Date, solely for such FCIB Group member’s own internal use in connection with its receipt of the Services under this Agreement. Without limiting Section 2.5(b), any use by FCIB Group members contemplated by the Schedules of Software that is licensed to CIBC or its Affiliates by third parties shall be subject in all respects to the terms, conditions and limitations of such license and any agreement with such third party in respect thereof.  In the event that any such use of such third party Software contemplated by the Schedules is no longer permitted pursuant to such license or agreement with such third party, CIBC shall use commercially reasonable efforts to assist FCIB in making alternate arrangements with such third party to permit such use or to obtain rights to alternative Software, provided that any such alternative arrangements or rights shall be at FCIB’s sole cost and expense.

 

16.4                        Content. All rights, title and interest in the Content, if created by CIBC pursuant to the Services, are and will be owned by FCIB and CIBC hereby assigns all copyrights and other intellectual property rights in such content to FCIB. All Content licensed from FCIB or third parties will remain the property of FCIB or the third party licensor, as the case may be.

 

16.5                        Content License. To the extent that the Content includes any computer program or other material that was created by or for CIBC prior to the date of the ICAs (“Pre-existing Content”),

 

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then CIBC will retain ownership of the Pre-existing Content and CIBC grants to FCIB a perpetual, royalty-free, non-exclusive, non-transferable, non-assignable license to use the Pre-existing Content, solely for the purpose of receiving the Services in accordance with this Agreement.

 

16.6                        Residual Information. Except for the rights and licenses expressly confirmed and granted by this Agreement, nothing in this Agreement or any course of dealing between the Parties will be deemed to create a license from one Party to the other Party of any intellectual property right, whether by estoppel, implication or otherwise. For greater certainty, nothing in this Agreement will have the effect of (a) precluding CIBC from utilizing any general skills and experience gained in carrying out its obligations under this Agreement which CIBC could have reasonably been expected to acquire in similar engagements by other companies; or (b) precluding CIBC from developing for, or licensing to, third party software or solutions to the extent that such software or solutions, at the time of such development or license, are similar to software or solutions which are publicly or commercially available through no breach by CIBC of its obligations under this Agreement.

 

16.7                        CIBC Policies. FCIB shall be permitted during the Term of this Agreement to utilize the text of CIBC policies provided to FCIB by CIBC in the creation of FCIB policies based on such CIBC policies, for internal use by FCIB Group members, provided that FCIB first removes any references to CIBC or CIBC Affiliates other than in a third party capacity (e.g., as a shareholder or counterparty of FCIB).  CIBC grants to FCIB a perpetual, royalty-free, non-transferable, non-assignable license to use the FCIB policies derived by FCIB from CIBC policies in accordance with the foregoing.

 

16.8                        Ownership of FCIB Data. CIBC acknowledges that all data generated by FCIB Group members, including information regarding clients of FCIB Group (in their capacity as such), is the Confidential Information of FCIB Group.

 

16.9                        Cooperation in Securing Rights. FCIB will cooperate in good faith with CIBC for the purpose of securing and protecting the intellectual property rights in the Software as specified in this Article XVI, at CIBC’s sole cost and expense.

 

ARTICLE XVII

 

RIGHTS AND OBLIGATIONS WITH RESPECT TO REGULATORS

 

17.1                        Changes Required by Regulator. The Parties acknowledge that a Caribbean Banking Regulator may require changes to how the Services are to be performed. If changes are so required, the Parties will promptly discuss in good faith mutually acceptable amendments to the Agreement, Appendices and/or Schedule(s) that would address such requested changes, and the Parties shall work together in good faith to enter into a written amendment to amend the Agreement, Appendices and/or Schedule(s); provided however, that any such amendment shall require the mutual agreement of the Parties.

 

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ARTICLE XVIII

MISCELLANEOUS

 

18.1                        Interpretation. In this Agreement, unless the context provides otherwise, a reference to:

 

(a)                                 the singular includes the plural and vice versa;

 

(b)                                 one gender includes the other gender and the neuter;

 

(c)                                  include and including shall be interpreted without limitation, irrespective of whether certain instances of those words expressly state “without limitation” and other instances do not;

 

(d)                                 general words shall not be given a restrictive meaning because they are preceded or followed by specific examples intended to fall within the meaning of those general words;

 

(e)                                  “will” and “shall” mean “must; and

 

(f)                                   right and obligations of FCIB will be deemed to include references to each member of the FCIB Group.

 

18.2                        Severability. If any provision of this Agreement is determined by any court of competent jurisdiction to be invalid, illegal or unenforceable, that provision will be severed from this Agreement and the remaining provisions will continue in full force and effect so long as the economic or legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse to either of the Parties.

 

18.3                        Entire Agreement. This Agreement restates the ICAs and constitutes the entire agreement between the Parties with respect to the subject matter of this Agreement and cancels and supersedes any other understandings and agreements between the Parties with respect to such subject matter, whether written or oral, and whether made prior to or during the Term. There are no representations, warranties, terms, conditions, undertakings or collateral agreements, express, implied or statutory, between the Parties other than as expressly set out in this Agreement.

 

18.4                        Currency. All of the dollar amounts mentioned in this Agreement or in the Appendices and Schedules, and all payments to be made hereunder, will be in Canadian funds, unless specifically denominated.

 

18.5                        Delay. When calculating the period of time within which or following which any act is to be done or step taken pursuant to this Agreement, the day which is the reference day in calculating such period will be excluded. If the day on which such delay expires is not a Business Day then the delay will be extended to the next following Business Day.

 

18.6                        Appendices and Schedules. The appendices attached to this Agreement from time to time by the agreement of the Parties (“Appendices”) and the Schedules are incorporated in this Agreement by reference and form a part hereof.

 

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18.7                        Conflicts of Interest. Neither this Agreement nor any transaction entered into pursuant to this Agreement will be invalidated or in any way affected by the fact that directors, officers, agents or shareholders of FCIB or FCIB Group members are or may be interested in CIBC as directors, officers, agents, shareholders or otherwise; that directors, officers, agents or shareholders of CIBC are or may be interested in FCIB or FCIB Group members as directors, officers, shareholders or otherwise; or that CIBC is or may be interested in FCIB or FCIB Group as a shareholder, directly or indirectly, or otherwise.

 

18.8                        Amendment. Except as otherwise expressly permitted or specified in this Agreement, this Agreement will not be amended or supplemented except by a mutual written agreement that (a) is signed by the authorized signing officer(s) of each of the Parties; and (b) expressly states that it is intended to amend or supplement, as the case may be, this Agreement.

 

18.9                        Assignment. Neither Party may assign its rights or obligations under or transfer any of its interest in this Agreement, without the prior consent of the other Party, which consent may be arbitrarily withheld, in each Party’s discretion. Any attempt to so assign or transfer is null and void.

 

18.10                 Binding Effect. This Agreement will enure to the benefit of and be binding upon the Parties and their respective successors and permitted assigns.

 

18.11                 Waiver. No waiver of any right or obligation or any remedy for breach of any provision of this Agreement will be effective or binding unless made in writing and signed by the authorized signing officer(s) of the Party purporting to give the same and, unless otherwise provided, will be limited to the specific right, obligation or breach waived. The failure of any Party at any time to require performance by the other Party of any provision of this Agreement will not affect in any way the full right to require such performance at any subsequent time; nor will a waiver by any Party of a breach of any provision of this Agreement be taken or held to be a waiver of the provision itself. Consummation of the transactions contemplated in this Agreement will not be deemed a waiver of a claim for breach of or inaccuracy in any representation, warranty or covenant or of any Party’s rights and remedies with regard to such claim.

 

18.12                 Notices. Any notice or other communications required or permitted to be given under this Agreement must be in writing and must be delivered either by personal delivery, mail, or similar telecommunications device, return receipt requested, and addressed as follows:

 

(a)                                 in the case of CIBC, to:

 

SVP Retail Operations & Intria
 155 Britannia Road East

Mississauga, Ontario, Canada, L4Z 4B7

Telephone: 416-258-5955

 

with a copy to:

 

Frank Vivacqua

 

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Assistant General Counsel
 Commerce Court
 Toronto, Ontario, Canada, M5L 1A2
 Telephone: 416-304-4498
 Email: Frank.Vivacqua@CIBC.com

 

(b)                                 in the case of FCIB, to:

 

Chief Information Officer
 FirstCaribbean International Bank Limited
 Head Office, Warrens, St. Michaels, Barbados
 Telephone: (246) 467-3398

Email: esan.peters@cibcfcib.com

 

with a copy to:

 

FirstCaribbean International Bank Limited

Head Office, Warrens

St. Michael, Barbados

Attention: General Counsel

Email: legalbds@cibcfcib.com

 

All such notices and other communications, when given in accordance with this Section 18.12, will be effective (i) if personally delivered, upon delivery; (ii) if mailed, on the fifth day after such communication is deposited in the mail; (iii) if faxed, on the next working day after transmission (in the case of fax messages) but only if a transmission report is generated by the sender’s fax machine recording a message from the recipient’s fax machine, confirming that the fax was sent to the number indicated above and confirming that all the pages were successfully transmitted. Any notice which is mailed will be sent by certified or registered mail, return receipt requested, postage prepaid. An address may be modified by written notice to the other Party.

 

18.13                 Independent Contractor. The Parties have entered into this arms-length independent contract for the rendering of Services by CIBC to FCIB and agree that CIBC’s employees and agents are not the employees of FCIB. In no event will CIBC’s employees be considered employees of FCIB. This Agreement will not be deemed to constitute or create any partnership, joint venture, master-servant, or employer-employee relationship between the Parties. The Parties will remain at all times independent contractors.

 

18.14                 Non-Exclusivity. The Services to be provided by CIBC under this Agreement are not exclusive to FCIB and nothing in this Agreement will prevent CIBC or any of its Affiliates from providing or continuing to provide similar services to others or from engaging in other activities.

 

18.15                 Further Assurances. Each Party upon the request of the other Party will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged or delivered all such further acts, deeds, documents, assignments, transfers, powers of attorney and assurances as may be reasonably necessary or desirable to effect complete consummation of the transactions contemplated in this Agreement.

 

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18.16                 Expenses. Save as otherwise set out in this Agreement, each Party will bear and pay its own costs, expenses and fees (including, without limitation, legal counsel and accounting fees and disbursements) incurred in connection with the preparation, execution and consummation of this Agreement and the transactions contemplated in this Agreement.

 

18.17                 Counterparts. This Agreement may be executed in one or more counterparts, each of which when so executed will be deemed an original and such counterparts together will constitute one and the same instrument.

 

[Signature page follows]

 

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IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first above mentioned.

 

	
 
    	
FIRSTCARIBBEAN   INTERNATIONAL BANK LIMITED
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CANADIAN   IMPERIAL BANK OF COMMERCE
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

 

APPENDIX A

 

Continuing Arrangements

 

(a)                                 Provided by CIBC without formal terms and conditions:

 

(i)                                     Wholesale & Corporate banking services.

 

(b)                                 Provided in accordance with the existing arrangements between the Parties:

 

(i)                                     ABM DCC Operating Agreement dated as of August 30, 2014.

 

(ii)                                  CIBC FX Conversion Service to the Caribbean Operating Agreement, dated as of November 11, 2014.

 

(iii)                               CIBC Global Banking & Trade Solutions, FCIB Clearing Arrangements  (Exotic Currencies), dated as of April 29, 2010.

 

(iv)                              CIBC Terms and Conditions Prepared for FirstCaribbean International Bank, dated as of October, 2012 relating to foreign currency clearing services.

 

(v)                                 Standby Letters of Credit, Documentary Letters of Credit and Inward Letters of Credit

 

(vi)                              Wealth Management Services — sub advisory services to Investment Funds (including PCF, Axiom & GTAA); Provided pursuant to multiple sub-advisory agreements;

 

(vii)                           Wealth Management Services — sub advisory services to segregated client accounts (Cayman); Agreements: “Investment Sub-Advisor Agreement” & Fee Schedule to the Investment Sub-Advisory Agreement” both dated 15 June, 2016

 

(viii)                        Wealth Management Services — sub advisory and administrative services to segregated client accounts using portfolio models for Cayman; Agreement “Advisory and Administrative Services Agreement” dated 8 Oct, 2008.

 

(ix)                              Wealth Management Services — sub advisory services for portfolio models (Curacao); Agreement “Sub-Advisory Agreement” dated 1 Aug, 2007

 

 

APPENDIX B

 

FCIB Service Arrangements

 

(a)                                 Arrangements between FCIB and CIBC Cayman Bank Limited (“CayBank”), including pursuant to the Technology Support Services Agreement, dated March 1, 2017, between FCIB and CayBank (“TSSA”).  In respect of this arrangements:

 

(i)                                     CIBC and FCIB to jointly develop detailed plan to repatriate application support and service hosting by October 31, 2019;

 

(ii)                                  CIBC will repatriate application support and server hosting for CayBank by October 31, 2019; and

 

(iii)                               CIBC and FCIB will terminate the TSSA by October 31, 2019.

 

(iv)                              CIBC and FCIB will cooperate to remove CayBank employees from FCIB Pension Plan and arrange alternative by October 31, 2019;

 

(v)                                 CIBC and FCIB will cooperate to remove CayBank employees from FCIB’s Health Care Provider and Life Insurance provider arrangements and arrange alternative by October 31, 2019; and

 

(vi)                              CIBC and FCIB will cooperate to remove CayBank employees from FCIB’s payroll services and arrange alternative by October 31, 2019.

 

(b)                                 Arrangements between FCIB and CIBC Reinsurance Company Ltd. (“CIBC Re”), including pursuant to the Agreement, dated March 7, 2017, between FCIB and CIBC Re.  In respect of these arrangements:

 

(i)                                     CIBC and FCIB will cooperate to discontinue and find an alternative for technical support by October 31, 2019;

 

(ii)                                  CIBC and FCIB will cooperate to discontinue and find an alternative for legal & compliance Support by October 31, 2019;

 

(iii)                               CIBC and FCIB will cooperate to discontinue and find an alternative for HR and Pension Plan Support by October 31, 2019:

 

·                  FCIB Pension Plan —  CIBC Re will remain a participating employer for a transition period;

 

·                  FCIB Healthcare Provider and Life Insurance — CIBC Re employees will remain covered for a transition period; and

 

·                  FCIB payroll services will continue for a transition period;

 

 

(iv)                              CIBC and FCIB will cooperate to convert premises support to an independent/arms length commercial lease by October 31, 2019; and

 

(v)                                 CIBC and FCIB will terminate all arrangements and agreements between FCIB and CIBC Re by October 31, 2019.

 

(c)                                  Arrangements between FCIB and CIBC Bank and Trust (“TrustCo”).  In respect of these arrangements:

 

(i)                                     CIBC and FCIB to ensure TrustCo company staff in Bahamas and Cayman are able to access FCIB intranet / network by October 31, 2018.

 

(ii)                                  CIBC and FCIB will cooperate to eliminate use of the following systems by TrustCo employees by October 31, 2019:

 

·                  employee data (myHR system)

 

·                  anniversaries program (vendor agreement with Rideau)

 

·                  annual CMTT

 

·                  annual bonus compensation administration (myComp)

 

·                  HR Contact Centre support for myHR system;

 

(iii)                               FCIB to move TrustCo staff out of CIBC premises and into FCIB premises in Cayman by December 31, 2018;

 

(iv)                              CIBC and FCIB will cooperate to transition TrustCo staff to FCIB ESPP by October 31, 2018;

 

(v)                                 CIBC and FCIB will cooperate to ensure that any ongoing relationship between the Trust Pension plan and CIBC Asset Management is on a normal commercial basis by October 31, 2019 should the Trust Pension wish to retain CIBC Asset Management as the investment manager for the plan.

 

(vi)                              CIBC and FCIB will cooperate to convert TrustCo staff from CIBC compensation plans to FCIB Compensation plans by October 31, 2018; and

 

(vii)                           CIBC and FCIB will cooperate to terminate all arrangements or agreements between TrustCo and CIBC by October 31, 2019.

 

(d)                                 In respect of additional HR-related arrangements:

 

a.                                      CIBC and FCIB will cooperate to come to an agreement on handling of all expat assignments by October 31, 2018:

 

i.                                          Confirm Global Mobility support for CIBC employees/executives on assignment at FCIB; and

 

 

b.                                      CIBC and FCIB will cooperate to discontinue Ad-hoc HR business partner support to FCIB Head of HR when CIBC interest falls below the Regulatory Control point; and

 

c.                                       CIBC and FCIB will cooperate to discontinue MRCC reviews of compensation and risk for FCIB key roles (CEO, COO, CFO, CRO) following the Non-Control Date.

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