Document:

Exhibit 4.8

 

GUARANTEE

 

THIS GUARANTEE is entered into as of the 20th day of October, 2015.

 

BETWEEN

 

Canadian Imperial Bank of Commerce, a bank governed by the Bank Act (Canada) with its registered and head office at 199 Bay Street, Commerce Court, Toronto, Ontario, Canada, M5L 1A2 (the “Bank”)

 

AND

 

First Citizens Trustee Services Limited a company incorporated under the laws of the Republic of Trinidad and Tobago with its registered office at 45 Abercromby Street in the City of Port of Spain, in the Island of Trinidad (the “Trustee”)

 

WHEREAS:

 

A.                                    FirstCaribbean International Bank (Trinidad & Tobago) Limited, a company incorporated under the laws of the Republic of Trinidad and Tobago, with its registered office at 74 Long Circular Road, Maraval, in the Island of Trinidad (the “Subsidiary”) proposes to issue Trinidad & Tobago Dollars Four Hundred and Eighty million (TTD 480,000,000) principal amount of Senior Unsecured Bonds due 2018 (the “Bonds”), which Bonds will be guaranteed as to principal and interest by Canadian Imperial Bank of Commerce (the “Bank”), subject to certain conditions;

 

B.                                    The Trustee was appointed pursuant to the Trust Deed dated 20th October, 2015, between the Subsidiary and the Trustee for the issue of the Bonds, subject to the terms and conditions set for the therein; and

 

C.                                    The Subsidiary is a wholly-owned subsidiary of FirstCaribbean International Bank Limited, a company incorporated under the laws of Barbados, with a registered number of 8521, whose registered office is at FirstCaribbean International Bank Head Office, Warrens, St Michael, Barbados (“FCIB Limited”), which, in turn, is a majority-owned subsidiary of the Bank.

 

NOW THEREFORE for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Bank agrees as follows:

 

1.                                      GUARANTEED DEBT.  The Bank guarantees to the Trustee on behalf of the holders of the Bonds on the basis provided herein the due and punctual payment of principal and interest payable by the Subsidiary under the terms of the Bonds from time to time, and any additional amounts required to be paid pursuant to this Agreement (the “Guaranteed Obligations”).  Notwithstanding any other provision of this Agreement, the liability of the Bank hereunder shall be for an amount not exceeding the aggregate of the Guaranteed Obligations.

 

 

2.                                      PAYMENT ON DEMAND.  The Bank will, immediately upon the failure of the Subsidiary to satisfy its obligations pursuant to the terms of the Bonds, pay on demand by the Trustee the amount (and in the currency) of the Guaranteed Obligations, plus any expenses (including reasonable counsel fees and disbursements) incurred by or on behalf of a holder of Bonds (each, a “Bondholder” and collectively, the “Bondholders”) in connection with its preservation and enforcement of rights against the Subsidiary in respect of the Guaranteed Obligations and against the Bank in respect of its obligations under this Agreement.  Any demand hereunder shall be in writing, signed by the Trustee (or by an authorised officer of the Trustee) making the demand, and shall be made by personal delivery or sent by pre-paid mail or fax to the Bank to the attention of Vice-President, Capital Management, Treasury, Head Office - Commerce Court, Toronto, Canada M5L 1A2, fax: (416) 956-3755, together with a copy to the attention of Vice-President and Associate General Counsel, CIBC Legal Division, Head Office - Commerce Court, Toronto, Canada M5L 1A2, fax: (416) 368-9826.  Any demand delivered as aforesaid shall be deemed effectively delivered and received if sent by fax, on the calendar day next following receipt of such transmission and, if delivered (by personal delivery or by pre-paid mail), to have been delivered and received on the date of such delivery; provided, however, in either case, that if such day is not a business day in Toronto, Ontario, Canada then it shall be deemed to have been delivered and received on the first business day following such delivery.

 

3.                                      INTEREST ACT (CANADA).  For purposes of the Interest Act (Canada), whenever any interest is calculated using a rate based on a year of 360 days or 365 days, as the case may be, such rate determined pursuant to such calculation, when expressed as an annual rate is equivalent to (i) the applicable rate based on a year of 360 days or 365 days, as the case may be, (ii) multiplied by the actual number of days in the calendar year in which the period for such interest is payable (or compounded) ends, and (iii) divided by 360 or 365, as the case may be.

 

4.                                      EXHAUSTING RECOURSE.  The Bondholders or the Trustee need not exhaust any recourse which they may have against the Subsidiary or other persons before being entitled to full payment from the Bank under this Agreement.

 

5.                                      ABSOLUTE LIABILITY.  The Bank’s liability under this Agreement is absolute and unconditional and will not be limited or reduced, nor will the Trustee or the Bondholders be responsible or owe a duty (as a fiduciary or otherwise) to the Bank, nor will the rights of the Bondholders under this Agreement be prejudiced by the existence or occurrence (with or without the knowledge or consent of the Trustee or the Bondholders) of any one or more of the following events:

 

a)  the invalidity, unenforceability or illegality, in whole or in part, of the Agreement, any security therefor and any agreements, instruments or other documents held by the Bondholders to create, represent or evidence any of the Guaranteed Obligations and any security therefor;

 

b)  any increase, reduction or other change in, transfer of, or discontinuance of, the Agreement or the terms relating to the Guaranteed Obligations and any security therefor;

 

 

any extensions of time or other indulgences granted to the Subsidiary or any other persons; any accepting of compositions or granting of releases and discharges; or any other dealing with the Subsidiary or other persons;

 

c)  any change in the Subsidiary’s name, or any reorganization (whether by way of reconstruction, consolidation, amalgamation, merger, transfer, sale, lease or otherwise) or dissolution or winding-up of the Subsidiary or its business; or the bankruptcy or insolvency of the Subsidiary;

 

d)  any incapacity, disability or lack or limitation or status or of the power of the Subsidiary or of the Subsidiary’s directors, managers, officers, partners or agents, or any irregularity, defect or informality in the incurring of any of the Guaranteed Obligations and any security therefor; or

 

e)  any other event which might otherwise be a defence available to, or a discharge of, the Bank or any other person or liability under this Agreement.

 

For the purposes of certainty, if as a result of the existence or occurrence of any one or more of the events above the Trustee on behalf of the Bondholders cannot recover any amount from the Bank as a guarantor, the Bank will immediately on demand as provided in this Agreement pay that amount to the Bondholders as principal debtor.

 

6.                                      WITHHOLDING TAXES AND LEVIES.  Unless a law requires otherwise, the Bank will make all payments under this Agreement free and clear of, and without withholding of or deduction for, or on account of, any present or future taxes, duties, assessments or governmental charges of whatever nature.  If a law does so require, the Subsidiary or, as the case may be, the Bank shall deduct and withhold the amount so required, remit it to the relevant taxing authority within the time required and pay such additional amount as is necessary to ensure the Bondholders receive such amounts as would have been received by them had no such withholding or deduction been required.

 

7.                                      JUDGEMENT CURRENCY.  The Bank’s liability to provide payment under this Agreement in a particular currency (the “First Currency”) will not be discharged or satisfied by any tender or recovery under any judgement expressed in or converted into another currency (the “Other Currency”) except to the extent the tender or recovery results in the effective receipt by the Bondholders of the full amount of the First Currency so payable.  Accordingly, the Bank will be liable to the Bondholders in an additional cause of action to recover in the Other Currency the amount (if any) by which that effective receipt falls short of the full amount of the First Currency so payable, without being affected by any judgement obtained for any other sums due.

 

8.                                      SEVERABILITY.  A provision of this Agreement which is void or unenforceable in a jurisdiction is, as to that jurisdiction, ineffective to that extent without invalidating the remaining provisions.

 

9.                                      CONTINUING GUARANTEE.  The Bank’s liability under this Agreement is a continuing guarantee and shall cover all the Guaranteed Obligations, and it shall apply to and secure the ultimate balance due or remaining unpaid to the Bondholders.

 

 

10.                               VALUATIONS AND SUBROGATION.  The liabilities of the Bank under this Agreement shall not be considered as wholly or partially satisfied by the payment or liquidation at any time or times of any sum or sums of money for the time being due or remaining unpaid to the Bondholders, and all payments received by the Bondholders from the Subsidiary or from others shall be regarded for all purposes as payments in gross without any right on the part of the Bank to claim in reduction of the liability under this Agreement the benefit of any such payments, and the Bank shall have no right to be subrogated in any rights of the Bondholders until the Bondholders shall have received payment in full of the Guaranteed Obligations.  The Bank shall be subrogated to the rights of the Bondholders against the Subsidiary.

 

11.                               ENTIRE AGREEMENT.  There are no representations, collateral agreements or conditions with respect to, or affecting, the Bank’s liability under this Agreement other than as contained in this Agreement.

 

12.                               GOVERNING LAW.  This Agreement shall be construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein.

 

IN WITNESS WHEREOF this Agreement has been executed as of the date first written above.

 

	
 
    	
CANADIAN   IMPERIAL BANK OF COMMERCE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Peter Levitt
    
	
 
    	
Name:   Peter Levitt
    
	
 
    	
Title:   Executive Vice President & Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
FIRST   CITIZENS TRUSTEE SERVICES LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Tessa Clifford
    
	
 
    	
Name:   Tessa Clifford
    
	
 
    	
Title:   Manager, Trust ServicesExhibit 4.9

 

PROMISSORY NOTE

 

FIRSTCARIBBEAN INTERNATIONAL BANK (JAMAICA) LIMITED

 

J$ Medium Term Promissory Notes due December, 2019

 

	
 
    	
 
    	
Serial number: 002    
    

 

	
AMOUNT: J$ 1,445,000,000.00
    	
 
    	
ISSUE DATE:   December 9, 2016 
    
	
 
    	
 
    	
MATURITY DATE:   December 9, 2019
    

 

THIS NOTE IS SUBJECT TO TRANSFER RESTRICTIONS WHICH inter alia RESTRICT TRANSFERS TO ACCREDITED INVESTORS SUBJECT TO CONDITIONS.

 

THIS NOTE MAY BE SUBJECT TO RESALE RESTRICTIONS IMPOSED AND/OR TO BE IMPOSED BY THE FINANCIAL SERVICES COMMISSION OF JAMAICA.

 

FOR VALUE RECEIVED, FIRSTCARIBBEAN INTERNATIONAL BANK (JAMAICA) LIMITED (the “Issuer”) HEREBY PROMISES TO PAY to the order of JCSD Trustee Services Limited or other registered holder hereof (the “Registered Holder”) the principal sum of One Billion Four Hundred and Forty Five Million JAMAICAN DOLLARS (J$1,445,000,000.00) the “Principal Amount” on or before the Maturity Date (as hereinbefore stipulated).

 

The Issuer further promises to pay interest on the unpaid principal amount hereof for each day during each Interest Period until the principal amount of the Note is repaid in full, at a rate per annum equal to the Agreed Rate. Accrued interest shall be payable in arrears on each Interest Payment Date. Interest at the relevant rate shall accrue from day to day (as well after as before any judgment) and be prorated on the basis of a 365-day year for the actual number of days in the relevant Interest Period.

 

If any principal or interest becomes due for payment on a day which is not a Business Day, payment thereof shall be made on the next succeeding Business Day (unless that day falls in the next calendar month in which event such payment shall be made on the immediately preceding Business Day). All payments of principal or interest shall be made upon presentment of this Note at the offices of JCSD Trustee Services Limited of 40 Harbour Street in the City and Parish of Kingston. All payments due under this Note shall be made without set-off or counterclaim.

 

This Note is one of the Notes referred to in the Trust Deed dated as of the 9th day of December, 2016 (the “Trust Deed”) entered into by the Issuer and JCSD Trustee Services Limited, the Trustee described therein and (1) this Note is issued subject to, and entitled to the benefit of, the provisions of the Trust Deed; and (2) this Note is also entitled to the benefit of the CIBC Guarantee (referred to in the Trust Deed).

 

 

This Note is unsecured.

 

This Note is subject to optional prepayment as provided for by Trust Deed. This Note is also subject to mandatory repayment as provided for by the Trust Deed. Upon the occurrence of one or more of the Events of Default (as set out in the Trust Deed) all amounts then remaining unpaid shall become immediately due and payable,

 

The Issuer hereby waives notice of dishonour, protest and presentment.

 

This Note shall be governed by, and construed in accordance with, the laws of Jamaica.

 

In this Note:

 

“Agreed Rate of Interest” means 7.65% per annum.

 

“Interest Payment Date” means (i) in each case the date upon which interest is payable for the preceding Interest Period but, in respect of the last Interest Period, the Maturity Date, being in each case the date upon which interest is payable for the preceding Interest Period, being the final day of such interest Period, or (ii) the date upon which interest may be payable pursuant to a Notice of Acceleration.

 

“Interest Period” means, in the first instance, the period commencing on the Issue Date and ending on May 31, 2017 and thereafter each six-month period expiring on November 30 and May 31 in each year, but in respect of the last Interest Period, commencing on the penultimate Interest Payment Date and continuing up to but excluding the Maturity Date.

 

“Maturity Date” means the date (herein provided for by which date the last payment with respect to principal payable under this Note is required to be paid.

 

“Notice of Acceleration” means a written notice stating that the principal sum owing hereunder has become due and payable (with or without interest) due to the occurrence of an Event of Default (as set forth in the Trust Deed).

 

IN WITNESS whereof, the Issuer has caused this Note to be duly executed manually on its behalf.

 

 

	
 
    	
FIRSTCARIBBEAN   INTERNATIONAL BANK (JAMAICA) LIMITED
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Nigel Holness
    	
 
    	
(seal)
    
	
 
    	
 
    	
Director/Authorised   Signatory
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Allison Rattray
    	
 
    
	
 
    	
 
    	
Director/Authorised   Signatory
    	
 
    

 

 

	
By:
    	
/s/ Michelle Sirdar
    	
 
    	
JCSD   Trustee Services Limited
    
	
 
    	
(Authorised   Signatory)
    	
 
    	
40   Harbor Street
    
	
 
    	
 
    	
 
    	
Kingston,   Jamaica, W.I.
    

 

ENDORSEMENTS

 

(Endorsee should note the transfer restrictions referred to above. An endorsee should register change of ownership with the Trustee who maintains a Register of Noteholders.)

 

	
(1) Pay:
    	
 
    	
 
    	
(2) Pay:
    	
 
    
	
 
    	
[Name   of Transferee]
    	
 
    	
 
    	
[Name   of Transferee]
    

 

	
   By:
    	
 
    	
 
    	
   By:
    	
 
    
	
 
    	
Name:
    	
 
    	
Name:
    
	
 
    	
Title:
    	
 
    	
Title:

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