Document:

Exhibit 10.1

 

EXECUTION VERSION

	
 
    	
 
    

 

STOCKHOLDER AGREEMENT

 

between

 

BNP PARIBAS

 

and

 

FIRST HAWAIIAN, INC.

 

 

Dated as of August 9, 2016

	
 
    	
 
    

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
PAGE
    
	
 
    	
 
    	
 
    
	
ARTICLE I
    
	
DEFINITIONS
    
	
Section 1.1
    	
Definitions
    	
1
    
	
Section 1.2
    	
Beneficial Ownership
    	
7
    
	
Section 1.3
    	
Interpretation
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE II
    
	
BOARD OF DIRECTORS AND CORPORATE GOVERNANCE
    
	
 
    	
 
    	
 
    
	
Section 2.1
    	
Board of Directors
    	
8
    
	
Section 2.2
    	
Audit Committee of the   Board
    	
9
    
	
Section 2.3
    	
Compensation Committee   of the Board
    	
10
    
	
Section 2.4
    	
Corporate Governance   and Nominating Committee of the Board
    	
11
    
	
Section 2.5
    	
Risk Committee of the   Board
    	
12
    
	
Section 2.6
    	
Company Bank Subsidiary   Board of Directors
    	
12
    
	
Section 2.7
    	
Implementation
    	
12
    
	
 
    	
 
    	
 
    
	
ARTICLE III
    
	
APPROVAL AND CONSENT RIGHTS
    
	
 
    
	
Section 3.1
    	
Approval and Consent   Rights
    	
13
    
	
 
    	
 
    	
 
    
	
ARTICLE IV
    
	
COMPLIANCE, INFORMATION, DISCLOSURE AND   FINANCIAL ACCOUNTING
    
	
 
    	
 
    	
 
    
	
Section 4.1
    	
Compliance with   Policies and Procedures
    	
16
    
	
Section 4.2
    	
Information and Access   Rights
    	
16
    
	
Section 4.3
    	
General Information   Requirements
    	
18
    
	
Section 4.4
    	
Matters Concerning   Auditors
    	
18
    
	
Section 4.5
    	
Release of Information   and Public Filings
    	
19
    
	
Section 4.6
    	
Information in   Connection with Regulatory or Supervisory Requirements
    	
20
    
	
Section 4.7
    	
Implementation with   Respect to Legal Disclosures
    	
21
    
	
Section 4.8
    	
Information Concerning   BNPP Equity Awards
    	
22
    
	
Section 4.9
    	
Expenses
    	
22
    
	
 
    	
 
    	
 
    
	
ARTICLE V
    
	
EXCHANGE OF COMMON STOCK for NON-VOTING COMMON STOCK
    
	
 
    	
 
    	
 
    
	
Section 5.1
    	
Exchange
    	
22
    

 

i

 

	
ARTICLE VI
    
	
OTHER PROVISIONS
    
	
 
    	
 
    	
 
    
	
Section 6.1
    	
Related Party   Transactions Policy
    	
23
    
	
Section 6.2
    	
Internal Communications   Protocols
    	
23
    
	
Section 6.3
    	
Confidentiality
    	
23
    
	
Section 6.4
    	
Director and Officer   Indemnification; Liability Insurance
    	
25
    
	
Section 6.5
    	
Deconsolidation Date   Determination
    	
25
    
	
 
    	
 
    	
 
    
	
ARTICLE VII
    
	
INDEMNIFICATION
    
	
 
    	
 
    	
 
    
	
Section 7.1
    	
Indemnification
    	
25
    
	
Section 7.2
    	
Procedure for   Indemnification of Third-Party Claims
    	
26
    
	
Section 7.3
    	
Additional Matters
    	
27
    
	
Section 7.4
    	
Payments
    	
28
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII
    
	
SETTLEMENT; DISPUTE RESOLUTION
    
	
 
    
	
Section 8.1
    	
Resolution Procedure
    	
28
    
	
 
    	
 
    	
 
    
	
ARTICLE IX
    
	
GENERAL PROVISIONS
    
	
 
    
	
Section 9.1
    	
Obligations Subject to Applicable   Law
    	
28
    
	
Section 9.2
    	
Notices
    	
28
    
	
Section 9.3
    	
Binding Effect;   Assignment; No Third-Party Beneficiaries
    	
29
    
	
Section 9.4
    	
Severability
    	
29
    
	
Section 9.5
    	
Entire Agreement;   Amendment
    	
29
    
	
Section 9.6
    	
Waiver
    	
30
    
	
Section 9.7
    	
Governing Law; Consent   to Jurisdiction
    	
30
    
	
Section 9.8
    	
Waiver of Jury Trial
    	
30
    
	
Section 9.9
    	
Counterparts
    	
30
    
	
Section 9.10
    	
Further Assurances
    	
31
    
	
Section 9.11
    	
Term; Survival
    	
31
    
	
Section 9.12
    	
Subsidiary and   Affiliate Action
    	
31
    
	
Section 9.13
    	
Expenses
    	
31
    

 

ii

 

STOCKHOLDER AGREEMENT

 

Stockholder Agreement (this “Agreement”), dated as of August 9, 2016, by and between BNP Paribas, a corporation organized and domiciled in the French Republic (“BNPP”), and First Hawaiian, Inc., a Delaware corporation (the “Company”).

 

RECITALS

 

WHEREAS, prior to the completion of the IPO, the Company is an indirect Wholly Owned Subsidiary of BNPP.

 

WHEREAS, in connection with the initial public offering (the “IPO”) of common stock, par value $0.01, of the Company (the “Common Stock”), a subsidiary of BNPP is selling 24,250,000 shares of Common Stock representing approximately 17.4% of the outstanding Common Stock as of the date hereof.

 

WHEREAS, the Company and BNPP desire to set forth certain agreements that will govern the relationship between them following the IPO.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valid consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement hereby agree as follows:

 

ARTICLE I
 DEFINITIONS

 

Section 1.1                                    Definitions.  Capitalized terms used in this Agreement shall have the meanings assigned below:

 

“5% Date” means the first date on which BNPP ceases to Beneficially Own at least 5% of the outstanding Common Stock.

 

“25% Date” means the first date on which BNPP ceases to Beneficially Own at least 25% of the outstanding Common Stock.

 

“50% Date” means the first date on which BNPP ceases to Beneficially Own at least 50% of the outstanding Common Stock.

 

“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” means, with respect to any Person, any other Person which directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person; provided that none of the Company and its Subsidiaries shall be considered Affiliates of BNPP or any of BNPP’s Affiliates for purposes of this Agreement.

 

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“Ancillary Agreements” means the Expense Reimbursement Agreement, the Transitional Services Agreement, the Registration Rights Agreement, the Master Reorganization Agreement, the Tax Sharing Agreement, the Insurance Agreement, the Intellectual Property Services Agreement and the Tax Allocation Agreement.

 

“Applicable Accounting Standards” means the International Financial Reporting Standards, as adopted for use in the European Union.

 

“Applicable Law” means any applicable law (including common law), statute, regulation, rule, executive order, ordinance, judgment, ruling, published regulatory policy or guideline, injunction, order, consent, exemption, license, approval or permit enacted, issued, promulgated, adjudged, entered or enforced by a Governmental Authority, including, for the avoidance of doubt, the Nasdaq Listing Rules.

 

“Bankruptcy Laws” means Title 11 of the United States Code and other Federal, state or foreign laws principally dealing with the liquidation, reorganization, administration, conservatorship or receivership of insolvent debtors.

 

“Beneficially Own” means, with respect to any Person, securities of which such Person or any of such Person’s Affiliates, directly or indirectly, has “beneficial ownership” as determined pursuant to Rule 13d-3 and Rule 13d-5 of the Exchange Act, including securities beneficially owned by others with whom such Person or any of its Affiliates has agreed to act together for the purpose of acquiring, holding, voting or disposing of such securities; provided that a Person shall not be deemed to Beneficially Own (i) securities tendered pursuant to a tender or exchange offer made by such Person or any of such Person’s Affiliates until such tendered securities are accepted for payment, purchase or exchange, (ii) any security as a result of an oral or written agreement, arrangement or understanding to vote such security if such agreement, arrangement or understanding (A) arises solely from a revocable proxy given in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable provisions of the Exchange Act, and (B) is not also then reportable by such Person on Schedule 13D under the Exchange Act (or any comparable or successor report).

 

“BHC Act” means the U.S. Bank Holding Company Act of 1956.

 

“BNPP” has the meaning set forth in the Preamble.

 

“BNPP Auditor” means the independent registered public accounting firm responsible for conducting the audit of BNPP’s annual financial statements.

 

“BNPP Authorized Person” means an individual designated in writing by BNPP to the Company as authorized to act on behalf of BNPP in the exercise of its rights hereunder.

 

“BNPP Director” means a Director designated by BNPP pursuant to its nomination rights set forth in Section 2.1(d) or otherwise designated in writing by BNPP to the Board of Directors to act in such capacity.

 

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“BNPP Independent Director” means a BNPP Director who is also an Independent Director.

 

“BNPP Individual” means (i) any director, officer or employee of BNPP or any of its Subsidiaries, (ii) any BNPP Director or (iii) any person designated by BNPP as a BNPP Director who, with his or her consent, is named in any Registration Statement of the Company under the Securities Act as about to become a Director of the Company.

 

“BNPP Policy Framework” means the policy framework as implemented and enforced by BNPP to which the Company is subject as of the Completion of the IPO, subject to any changes thereto, including the addition of new policies or changes to or removal of existing policies, as may be designated in writing by a BNPP Authorized Person from time to time.

 

“Board of Directors” or “Board” means the board of directors of the Company.

 

“Business Day” means any day except a Saturday, Sunday or day on which banks in Honolulu, Hawaii, New York, New York or Paris, France are authorized or required by Applicable Law to close.

 

“Capital Stock” means the equity capital or other equity interests of a Person or a security convertible or exercisable (whether or not such conversion or exercise is contingent or conditional) into or for the equity capital or other equity interests of a Person.

 

“CEO” means the Chief Executive Officer of the Company (or the equivalent successor position), as elected or appointed by the Board of Directors.

 

“CFO” means the Chief Financial Officer of the Company (or the equivalent successor position), as elected or appointed by the Board of Directors.

 

“Claim Notice” has the meaning set forth in Section 7.2(a).

 

“Common Stock” has the meaning set forth in the Preamble, and does not include Non-Voting Common Stock.

 

“Company” has the meaning set forth in the Preamble.

 

“Company Auditor” means the independent registered public accounting firm responsible for conducting the audit of the Company’s annual financial statements.

 

“Company Bank Subsidiary” means First Hawaiian Bank, a Hawaii state-chartered bank and Wholly Owned Subsidiary of the Company, together with any successor of First Hawaiian Bank.

 

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“Company Slate” means the candidates for election as Director proposed or recommended by the Board of Directors to the Company’s stockholders in connection with a meeting of stockholders.

 

“Completion of the IPO” means the consummation of the IPO upon the settlement of the first sale of Common Stock pursuant to the Registration Statement on Form S-1 (File No. 333-212451) relating to the IPO.

 

“Confidential Information” means, with respect to either Party or any of its Subsidiaries, any information disclosed by such Party to the other Party or any of the other Party’s respective Subsidiaries, whether on or prior to the date hereof, that relates to (i) any information relating to the business, financial or other affairs (including future plans, financial targets, trade secrets and know-how) of such other Party or such other Party’s Subsidiaries, or (ii) any information of the other Party or such other Party’s Subsidiaries provided in a manner which reasonably indicates the confidential or proprietary nature of such information.

 

“CRD IV” means the fourth EU Capital Requirements Directive and EU Capital Requirements Regulation.

 

“CRO” means the Chief Risk Officer of the Company (or the equivalent successor position), as elected or appointed by the Board of Directors.

 

“Deconsolidation Date” means the date on which BNPP ceases to consolidate the Company’s financial statements with its financial statements under the Applicable Accounting Standards.

 

“Director” means a member of the Board of Directors.

 

“Disclosing Party” has the meaning set forth in Section 6.3(a).

 

“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 and termination.

 

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

 

“Executive Officer” means the CEO, the President and Chief Operating Officer, the CFO, the CRO and all other persons qualifying as “officers” of the Company for purposes of Rule 16a-1(f) under the Exchange Act.

 

“Expense Reimbursement Agreement” means the Expense Reimbursement Agreement, effective as of July 1, 2016, by and between the Company and BNPP.

 

4

 

“Final Determination” means, with respect to a Dispute as to indemnification for a Loss under this Agreement, (i) a written agreement between the parties to such Dispute resolving such Dispute, (ii) a final and non-appealable order or judgment entered by a court of competent jurisdiction resolving such Dispute or (iii) a final non-appealable determination rendered by an arbitration or like panel to which the parties submitted such Dispute that resolves such Dispute.

 

“GAAP” means generally accepted accounting principles in the United States.

 

“Governmental Authority” means any federal, state, local, domestic or foreign agency, court, tribunal, administrative body, arbitration panel, department or other legislative, judicial, governmental, quasi-governmental entity or self-regulatory organization with competent jurisdiction.

 

“Indemnitee” has the meaning set forth in Section 7.2(a).

 

“Indemnifying Person” has the meaning set forth in Section 7.2(a).

 

“Independent Director” means a Director who is both (i) an independent director under Section 5605 of the Nasdaq Listing Rules and (ii) “independent” for purposes of Rule 10A-3(b)(1) under the Exchange Act.

 

“Information Party” has the meaning set forth in Section 4.7(c).

 

“Insurance Agreement” means the Insurance Agreement, dated the date hereof, by and among BNPP, BNP Paribas USA, Inc. and the Company.

 

“IPO” has the meaning set forth in the Recitals.

 

“Intellectual Property Services Agreement” means the Intellectual Property Services Agreement, dated the date hereof, by and among the Company, the Company Bank Subsidiary, BancWest Holding Inc., BancWest Corporation and Bank of the West.

 

“Lead Director” means the Director designated as such by the Board of Directors pursuant to Section 2.1(f)(i).

 

“Loss” means any damages, losses, charges, liabilities, claims, demands, actions, suits, proceedings, payments, judgments, settlements, assessments, interest, penalties, and costs and expenses (including removal costs, remediation costs, closure costs, fines, penalties, reasonable attorneys’ fees and reasonable out of pocket disbursements).

 

“Master Reorganization Agreement” means the Master Reorganization Agreement, dated as of April 1, 2016, by and among the Company (f/k/a BancWest Corporation), BWC Holding, Inc. (now known as BancWest Corporation), BancWest Holding Inc. and BNPP.

 

5

 

“Nasdaq Listing Rules” means the NASDAQ Stock Market Listing Rules.

 

“Non-Control Date” means the date on which BNPP ceases to control the Company for purposes of the BHC Act as provided for in a written determination from the Board of Governors of the Federal Reserve System to BNPP or such earlier date as BNPP may designate in writing to the Company.

 

“Non-Voting Common Stock” means the Non-Voting Common Stock, par value $0.01 per share, of the Company.

 

“Notice Period” has the meaning set forth in Section 7.2(b).

 

“Other Officer” means an officer of the Company, other than an Executive Officer, whose compensation is subject to the requirements of CRD IV.

 

“Party” means either the Company or BNPP.

 

“Person” means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, incorporate organization, association, corporation, institution, public benefit corporation, Governmental Authority or any other entity.

 

“Qualified Compensation Director” means a Director who is (i) a “Non-Employee Director” as defined in Rule 16b-3(b)(3)(i) under the Exchange Act and (ii) an “outside director” as defined in Treasury Regulations Section 1.162-27(e)(3)(i).

 

“Receiving Party” has the meaning set forth in Section 6.3(a).

 

“Registration Rights Agreement” means the Registration Rights Agreement, dated the date hereof, between BNPP, BancWest Corporation and the Company.

 

“Regulation S-K” means Regulation S-K under the Securities Act and the Exchange Act.

 

“Representatives” means, with respect to any Person, any officer, director, employee, advisor, agent or representative of such Person, or anyone acting on behalf of them or such Person.

 

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

 

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

 

“Section 162(m)” means Section 162(m) of the Internal Revenue Code of 1986, as amended, and the regulations and guidance promulgated thereunder.

 

“Subsidiary” means, with respect to any Person, any other Person who is controlled by such Person; provided that none of the Company and its Subsidiaries shall

 

6

 

be considered Subsidiaries of BNPP or any of BNPP’s Subsidiaries for purposes of this Agreement.

 

“Tax Allocation Agreement” means the Tax Allocation Agreement, effective as of July 1, 2016, by and among BNPP, BNP Paribas USA, Inc., BNP Paribas Fortis, BancWest Corporation, BancWest Holding Inc., Bank of the West, the Company and the Company Bank Subsidiary.

 

“Tax Sharing Agreement” means the Tax Sharing Agreement, dated as of April 1, 2016, by and among BNPP, the Company (f/k/a BancWest Corporation) and BancWest Holding, Inc.

 

“Third-Party Claim” means any assertion by a Person (including a Governmental Authority) who is not, and is not a Subsidiary of, a Party of any claim, or the commencement by any Person of any Action, against any Party, or its Subsidiary.

 

“Transitional Services Agreement” means the Transitional Services Agreement, dated the date hereof, by and among BNPP, BancWest Holding Inc., Bank of the West, the Company and the Company Bank Subsidiary.

 

“Wholly Owned Subsidiary” means, with respect to any Person, a Subsidiary of such Person, 100% of the Capital Stock of which is owned, directly or indirectly, by such Person.

 

Section 1.2                                    Beneficial Ownership.  For purposes of this Agreement, BNPP shall:

 

(a)                                 be deemed to Beneficially Own securities that are Beneficially Owned by its Subsidiaries; and

 

(b)                                 be deemed to be acting on behalf of its Subsidiaries with respect to their capacities as holders of legal and economic interests, respectively, in Common Stock and Non-Voting Common Stock, as applicable.

 

Section 1.3                                    Interpretation.

 

(a)                                 Unless the context otherwise requires:

 

(i)                                     references contained in this Agreement to the Preamble, Recitals and to specific Articles, Sections or Subsections shall refer, respectively, to the Preamble, Recitals, Articles, Sections or Subsections of this Agreement;

 

(ii)                                  references to any agreement or other document are to such agreement or document as amended, modified, supplemented or replaced from time to time;

 

(iii)                               references to any statute or statutory provision include all rules and regulations promulgated pursuant to such statute or statutory provision, in each case as such

 

7

 

statute, statutory provision, rules or regulations may be amended, modified, supplemented or replaced from time to time;

 

(iv)                              references to any Governmental Authority include any successor to such Governmental Authority;

 

(v)                                 terms defined in the singular have a comparable meaning when used in the plural, and vice versa;

 

(vi)                              the words “hereof”, “herein” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement;

 

(vii)                           the terms “Dollars” and “$” mean U.S. Dollars; and

 

(viii)                        wherever the word “include”, “includes” or “including” is used in this Agreement, it shall be deemed to be followed by the words “without limitation”.

 

(b)                                 The headings contained in this Agreement are for reference purposes only and do not limit or otherwise affect any of the provisions of this Agreement.

 

(c)                                  The Parties have participated jointly in the negotiation and drafting of this Agreement.  In the event of an ambiguity or a question of intent or interpretation, this Agreement shall be construed as if drafted jointly 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.

 

(d)                                 In this Agreement, any provision which applies “until” a specified date shall apply before and on such specified date, and shall cease to apply on the date immediately following such specified date.

 

ARTICLE II
  BOARD OF DIRECTORS AND CORPORATE GOVERNANCE

 

Section 2.1                                    Board of Directors.

 

(a)                                 As of the Completion of the IPO, the Board of Directors shall consist of nine (9) members.  From the Completion of the IPO until the earlier of (i) the one-year anniversary of the 50% Date and (ii) the 25% Date, the Company shall use its best efforts to cause the Board of Directors to consist of a majority of BNPP Directors.  From and after the one-year anniversary of the 50% Date, the Board of Directors shall transition to full compliance with Section 5605(b) of the Nasdaq Listing Rules to the extent the composition of the Board of Directors is not already in full compliance, such that on and after the one-year anniversary of the 50% Date, the Board of Directors shall consist of a majority of Independent Directors.

 

(b)                                 At all times, the Board of Directors shall include at least three (3) Independent Directors.

 

8

 

(c)                                  The CEO shall serve on the Board of Directors and shall be the Chairperson of the Board of Directors.  The CEO shall not be deemed a BNPP Director.

 

(d)                                 BNPP shall have the right to nominate for inclusion on the Company Slate such number of Directors, each of whom shall be a BNPP Director, such that the aggregate number of Directors nominated by BNPP on the Company Slate is equal to the following (or such lower number as BNPP shall determine):

 

(i)                                     until the earlier of (A) the one-year anniversary of the 50% Date and (B) five (5) days after the 25% Date, five (5) Directors, or such other number as shall represent a majority of the Directors on the Board of Directors;

 

(ii)                                  if the 25% Date has not occurred, from and after the one-year anniversary of the 50% Date until five (5) days after the 25% Date, three (3) Directors;

 

(iii)                               from and after five (5) days after the 25% Date until five (5) days after the 5% Date, one (1) Director; and

 

(iv)                              five (5) days after the 5% Date, none.

 

(e)                                  Until the 5% Date, the Company shall use its best efforts:

 

(i)                                     to cause there to be on the Board of Directors at all times that number of BNPP Directors for which BNPP maintains nomination rights pursuant to Section 2.1(d);

 

(ii)                                  to fill any vacancy on the Board of Directors created by the resignation, removal or incapacity of any BNPP Director with an individual designated by BNPP, to the extent BNPP would then have the right to nominate such individual consistent with the aggregate number of BNPP Directors BNPP shall then be entitled to nominate pursuant to Section 2.1(d); and

 

(iii)                               to prevent the removal of any BNPP Director without BNPP’s consent, to the extent BNPP would then have the right to nominate such individual consistent with the aggregate number of BNPP Directors BNPP shall then be entitled to nominate pursuant to Section 2.1(d).

 

(f)                                   The Board of Directors may, in its sole discretion, designate one of the Independent Directors who is not a BNPP Director as its “Lead Director” to preside over meetings of the Board of Directors held in the absence of any Director who is also an Executive Officer and to have such additional responsibilities and authority as the Board of Directors may direct from time to time.

 

Section 2.2                                    Audit Committee of the Board.

 

(a)                                 As of the Completion of the IPO, the Board of Directors shall have established an audit committee that shall consist of three (3) or more Independent Directors (with the size of the audit committee established by the Board of Directors).

 

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(b)                                 At any time prior to the 5% Date during which a BNPP Independent Director serves on the Board of Directors, at least one (1) member of the audit committee shall be a BNPP Independent Director designated by BNPP, so long as such BNPP Independent Director also meets the standards for audit committee membership as set forth in the Nasdaq Listing Rules and the rules under the Exchange Act.  No BNPP Independent Director shall be a member of the audit committee following the 5% Date.

 

(c)                                  The audit committee shall have responsibilities and authority consistent with Rule 10A-3 under the Exchange Act and Section 5605(c) of the Nasdaq Listing Rules, and such additional responsibilities and authority, not inconsistent with this Agreement, as shall be delegated to it by the Board of Directors from time to time.

 

(d)                                 The audit committee shall have at all times at least one (1) member who is an “audit committee financial expert” as defined in Item 407(d)(5) of Regulation S-K.

 

Section 2.3                                    Compensation Committee of the Board.

 

(a)                                 As of the Completion of the IPO, the Board of Directors shall have established a compensation committee that, at all times prior to the 50% Date, shall consist of three (3) or more Directors (with the size of the compensation committee established by the Board of Directors) with at least one (1) such Directors being a BNPP Director.  BNPP shall designate the BNPP Director to fill the position reserved for BNPP Directors on the compensation committee pursuant to this Section 2.3(a).

 

(b)                                 On the 50% Date (or on such earlier date as BNPP shall determine), the compensation committee shall transition to full compliance with Section 5605(d) of the Nasdaq Listing Rules to the extent the composition of the compensation committee is not already in full compliance, as follows:

 

(i)                                     on or before the 50% Date, the compensation committee shall have at least one (1) Independent Director who is also a Qualified Compensation Director;

 

(ii)                                  on or before 90 days following the 50% Date, the compensation committee shall consist of a majority of Independent Directors, at least two (2) of whom are Qualified Compensation Directors; and

 

(iii)                               on or before the one-year anniversary of the 50% Date, the compensation committee shall consist solely of Independent Directors, at least two (2) of whom are Qualified Compensation Directors.

 

(c)                                  Until the Deconsolidation Date, the Board of Directors, in its entirety and in compliance with CRD IV and any similar regulations to which BNPP is subject, shall:

 

(i)                                     approve any grants of equity or equity-based compensation awards to any Executive Officer, Other Officer or Director; and

 

(ii)                                  determine performance goals for performance-based compensation of the Executive Officers and Other Officers and the satisfaction thereof;

 

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provided that, if determined necessary in order to provide qualified performance-based compensation under Section 162(m) and/or to comply with other Applicable Law, the compensation committee or subcommittee of the Board of Directors composed solely of two (2) or more Qualified Compensation Directors shall be responsible for the foregoing matters.

 

(d)                                 Following the 50% Date, the compensation committee shall have responsibilities and authority consistent with Section 5605(d) of the Nasdaq Listing Rules, and such additional responsibilities and authority, not inconsistent with this Agreement, as shall be delegated to it by the Board of Directors from time to time.

 

(e)                                  After the one-year anniversary of the 50% Date (or such other date on which the compensation committee shall consist solely of Independent Directors) and until the 5% Date, at any time during which a BNPP Independent Director serves on the Board of Directors, at least one member of the compensation committee shall be a BNPP Independent Director.  No BNPP Director shall be a member of the compensation committee following the 5% Date.

 

Section 2.4                                    Corporate Governance and Nominating Committee of the Board.

 

(a)                                 As of the Completion of the IPO, the Board of Directors shall have established a corporate governance and nominating committee that, at all times prior to the 50% Date, shall consist of three (3) or more Directors (with the size of the corporate governance and nominating committee established by the Board of Directors) with at least one (1) such Director being a BNPP Director. BNPP shall designate the BNPP Director to fill the position reserved for BNPP Directors on the corporate governance and nominating committee pursuant to this Section 2.4(a).

 

(b)                                 On the 50% Date (or on such earlier date as BNPP shall determine), the corporate governance and nominating committee shall transition to full compliance with Section 5605(e) of the Nasdaq Listing Rules to the extent the composition of the corporate governance and nominating committee is not already in full compliance, as follows:

 

(i)                                     on or before the 50% Date, the corporate governance and nominating committee shall have at least one (1) Independent Director;

 

(ii)                                  on or before 90 days following the 50% Date, the corporate governance and nominating committee shall consist of a majority of Independent Directors; and

 

(iii)                               on or before the one-year anniversary of the 50% Date, the corporate governance and nominating committee shall consist solely of Independent Directors.

 

(c)                                  The corporate governance and nominating committee shall at all times exercise the responsibilities and authority set forth under Section 5605(e) of the Nasdaq Listing Rules, and such additional responsibilities and authority, not inconsistent with this Agreement, as shall be delegated to it by the Board of Directors from time to time.

 

(d)                                 After the one-year anniversary of the 50% Date (or such other date on which the corporate governance and nominating committee shall consist solely of Independent

 

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Directors) and until the 5% Date, at any time during which a BNPP Independent Director serves on the Board of Directors, at least one (1) member of the corporate governance and nominating committee shall be a BNPP Independent Director.  No BNPP Director shall be a member of the corporate governance and nominating committee following the 5% Date.

 

Section 2.5                                    Risk Committee of the Board.

 

(a)                                 As of the Completion of the IPO, the Board of Directors shall have established a risk committee that, at all times prior to the Non-Control Date, shall consist of four (4) or more Directors (with the size of the risk committee established by the Board of Directors) with up to two (2) such Directors being BNPP Directors. BNPP shall designate the BNPP Directors to fill the positions reserved for BNPP Directors on the risk committee pursuant to this Section 2.5(a).

 

(b)                                 The Chairperson of the risk committee must satisfy the requirements of 12 C.F.R. § 252.22(d)(2).  At least one (1) member of the risk committee must have experience in identifying, assessing and managing risk exposures of large, complex firms.

 

Section 2.6                                    Company Bank Subsidiary Board of Directors.

 

(a)                                 From the Completion of the IPO until the Non-Control Date (or such earlier date as BNPP shall determine), subject to Applicable Law, all of the members of the Board of Directors, including the BNPP Directors who serve on the Board of Directors in accordance with Section 2.1, shall be members of the board of directors of the Company Bank Subsidiary.

 

(b)                                 From the Completion of the IPO until the Non-Control Date (or such earlier date as BNPP shall determine), subject to Applicable Law, the audit, compensation, corporate governance and nominating and risk committees of the Company Bank Subsidiary shall have the same members as the corresponding committees of the Company.

 

Section 2.7                                    Implementation.

 

(a)                                 The Company shall make such disclosures, and shall take such other steps, as shall be required to avail itself of such exemptions from the Nasdaq Listing Rules and other Applicable Law so as to permit the full implementation of this Article II.

 

(b)                                 Any determination by or consent of BNPP pursuant to this Article II shall be evidenced in advance by a writing signed on behalf of BNPP by a BNPP Director or a BNPP Authorized Person.

 

(c)                                  Except as expressly stated in this Article II, BNPP Directors (i) shall not be required to be Independent Directors or meet any standard of independence from the Company and (ii) may be officers or employees of BNPP or any of its Affiliates, but not of the Company or any of the Company’s Subsidiaries.

 

(d)                                 The Chairman of the Board of Directors shall provide each Director advance notice of all committee or subcommittee meetings, whether or not such Director serves

 

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on any such committee or subcommittee. Any Director may attend any committee or subcommittee meeting as a non-voting observer; provided that any committee or subcommittee shall have the right to hold sessions consisting only of members of such committee or subcommittee and invited guests present, as applicable.

 

(e)                                  BNPP may, in its sole discretion and at any time, waive any of its rights under this Agreement, including its rights to designate individuals for nomination and election to the Board of Directors and to designate individuals to serve on the committees of the Board of Directors.

 

ARTICLE III
  APPROVAL AND CONSENT RIGHTS

 

Section 3.1                                    Approval and Consent Rights.

 

(a)                                 Until the 25% Date (or such earlier date as BNPP shall determine), the Company shall not (either directly or indirectly through a Subsidiary, or through one or a series of related transactions) take any of the following actions without the approval of a majority of the BNPP Directors on the Board of Directors (or, if no BNPP Directors remain on the Board of Directors, a BNPP Authorized Person) at the time of such action:

 

(i)                                     any merger, consolidation or similar transaction (or any amendment to or termination of an agreement to enter into such a transaction) with consideration or value of more than $50 million;

 

(ii)                                  any acquisition or disposition of securities, assets or liabilities involving a value greater than $50 million other than transactions involving investment securities or loans approved in accordance with the Company’s or any of its Subsidiary’s established policies and procedures to monitor invested assets or loans, respectively;

 

(iii)                               any incurrence or guaranty of a debt obligation having a principal amount greater than $50 million, other than (A) debt obligations incurred by the Company Bank Subsidiary in the ordinary course and (B) a guaranty or similar undertaking by the Company Bank Subsidiary in the ordinary course of business;

 

(iv)                              any issuance of any debt security of the Company or any of its Subsidiaries involving an aggregate principal amount exceeding $250 million or, in the case of subordinated debt obligations, involving an aggregate principal amount exceeding $50 million, in each case calculated on a cumulative basis over a twelve (12) month period;

 

(v)                                 entry into, or termination of, any joint venture or cooperation arrangements involving assets having a value exceeding $50 million;

 

(vi)                              the amendment (or approval or recommendation of the amendment) of the Company’s or any of the Company’s Subsidiaries’ certificates of incorporation or bylaws (or other similar organizational documents);

 

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(vii)                           any material change in the scope of the Company’s business from the scope of the Company’s business immediately before the Completion of the IPO;

 

(viii)                        entry into, or termination of, any material contract, or any material amendment to any material contract, other than, in each case, (i) any employment agreement, (ii) any contract involving either aggregate cumulative payments of $15 million or more or aggregate annual payments of $7 million or more or (iii) any contract where entry into, termination or material amendment of is otherwise expressly permitted by this Agreement or by the Transitional Services Agreement;

 

(ix)                              settlement of any material litigation or proceeding;

 

(x)                                 the election, hiring or dismissal, other than a dismissal for cause, of the CEO or CFO of the Company or the Company Bank Subsidiary; or

 

(xi)                              any increase or decrease in the size of the Board of Directors.

 

(b)                                 Until the Deconsolidation Date (or such earlier date as BNPP shall determine):

 

(i)                                     the Company’s annual budget shall be approved by a majority of the BNPP Directors on the Board of Directors at the time of such annual budget (or, if no BNPP Director remains on the Board of Directors, a BNPP Authorized Person); and

 

(ii)                                  the Company may not, without the approval of a majority of the BNPP Directors on the Board of Directors at the time of such action (or, if no BNPP Director remains on the Board of Directors, a BNPP Authorized Person) or otherwise as required by Applicable Law, make any change in the Company Auditor.

 

(c)                                  Until the 5% Date (or such earlier date as BNPP shall determine), the Company shall not (either directly or indirectly through a Subsidiary, or through one or a series of related transactions) take any of the following actions without the approval of a majority of the BNPP Directors on the Board of Directors at the time of such action (or, if no BNPP Director remains on the Board of Directors, a BNPP Authorized Person):

 

(i)                                     any increase or decrease in the authorized Capital Stock of the Company, or the creation of any new class or series of Capital Stock of the Company (including, for the avoidance of doubt, any class or series of preferred stock of the Company);

 

(ii)                                  any issuance or acquisition (including stock buy-backs, redemptions and other reductions of capital) of Capital Stock of the Company or any of its Subsidiaries, except:

 

(A)                               issuances and grants to a Director or employee of the Company of vested or unvested shares of Common Stock or restricted Common Stock, options to acquire shares of Common Stock, restricted stock units, “phantom” stock units or similar interests in the Company’s common equity,

 

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in each case pursuant to an equity compensation plan approved by the Board of Directors; or

 

(B)                               issuances of Capital Stock of a Subsidiary to a Wholly Owned Subsidiary, or acquisitions of Capital Stock of a Subsidiary by a Wholly Owned Subsidiary;

 

(iii)                               the listing or delisting of any class of Capital Stock of the Company or any of its Subsidiaries on a securities exchange; or

 

(iv)                              other than as required by Applicable Law, the formation of, or delegation of authority to, any new committee, or subcommittee thereof, of the Board of Directors, or the delegation of authority to any existing committee or subcommittee thereof not set forth in the committee’s charter or authorized by the Board of Directors prior to the Consummation of the IPO.

 

(d)                                 Until the Non-Control Date (or such earlier date as BNPP shall determine), the Company shall not (either directly or indirectly through a Subsidiary, or through one or a series of related transactions) take any of the following actions without the approval of a majority of the BNPP Directors on the Board of Directors (or, if no BNPP Director remains on the Board of Directors, a BNPP Authorized Officer) at the time of such action:

 

(i)                                     any change in any policy relating to loans or other risk appetite settings, investments, asset-liability management or derivatives or in any other policy that could reasonably be deemed to have a material effect on the Company’s consolidated results of operations or financial condition;

 

(ii)                                  any material written agreement or settlement with, or any material written commitment to, a regulatory agency, or any settlement of a material enforcement action;

 

(iii)                               with respect to the Company or any Subsidiary, any filing or the making of any petition under Bankruptcy Laws, any general assignment for the benefit of creditors, any admission of an inability to meet obligations generally as they become due or any other act the consequence of which is to subject the Company or any Subsidiary to a proceeding under Bankruptcy Laws;

 

(iv)                              any actions to affect the dissolution or winding-up of the Company or the Company Bank Subsidiary; or

 

(v)                                 any declaration or payment of a dividend or other “capital distribution” as defined by the Federal Reserve in 12 C.F.R. § 225.8.

 

(e)                                  BNPP may, in its sole discretion and at any time, waive any of its rights under this Agreement, including its rights to approve or consent to any actions to be taken by the Company described in this Article III.

 

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ARTICLE IV
  COMPLIANCE, INFORMATION, DISCLOSURE AND FINANCIAL ACCOUNTING

 

Section 4.1                                    Compliance with Policies and Procedures.

 

(a)                                 Until the Non-Control Date (or such earlier date as BNPP shall determine), the Company agrees that it shall, and shall cause each of its Subsidiaries to:

 

(i)                                     maintain, observe and comply with the BNPP Policy Framework (unless BNPP otherwise authorizes or directs or provides in writing for an earlier termination date in respect of any policy or procedure, in which case such specified date shall apply) to the extent necessary for BNPP to comply with its legal and regulatory obligations under Applicable Law;

 

(ii)                                  not adopt or implement any policies or procedures, and at BNPP’s reasonable request, refrain from taking any actions, that would cause BNPP or any of its Subsidiaries to violate any Applicable Law to which BNPP is subject; and

 

(iii)                               unless such action requires the approval by BNPP pursuant to Section 3.1(d)(i), prior to implementing, amending or rescinding any risk, capital, investment, asset-liability management or regulatory compliance, consult with the BNPP Authorized Person, and, to the extent consistent with its fiduciary duties, the Board of Directors shall take into account the reasonable interests of BNPP with respect thereto;

 

provided, that this Section 4.1(a) shall not require the Company to take any action (including adopting or implementing any policy) or refrain from taking any action where such action or inaction would cause the Company or any of its Subsidiaries to violate Applicable Law.

 

(b)                                 Until the Deconsolidation Date (or such earlier date as BNPP shall determine) the Company shall comply with CRD IV and any similar regulations to which BNPP is subject and the Company’s compensation committee shall exercise its authority in compliance with any BNPP policy related to compensation matters to the extent necessary for BNPP to comply with CRD IV and any similar regulations to which BNPP is subject.

 

Section 4.2                                    Information and Access Rights.

 

(a)                                 Until the Non-Control Date (or such earlier date as BNPP shall determine), the Company agrees to continue to provide BNPP with information and data relating to the business and financial results of the Company and its Subsidiaries to the extent that such information, data or access is required for BNPP to meet any legal, financial, regulatory, compliance, tax, audit (internal and external) or risk management obligation or requirement (as determined by BNPP in its reasonable judgment).

 

(b)                                 The Company agrees that, until the Deconsolidation Date (or such earlier date as BNPP shall determine):

 

(i)                                     Accounting Systems and Principles.  The Company shall maintain accounting principles, systems and reporting formats that are consistent with BNPP’s financial

 

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accounting practices in effect as of the Completion of the IPO, and shall thereafter in good faith consider any changes to such principles, systems or reporting formats requested by BNPP;

 

(ii)                                  Controls and Procedures. The Company shall, and shall cause each of its Subsidiaries to, (A) maintain adequate and effective disclosure controls and procedures and internal control over financial reporting and (B) provide quarterly certifications from its relevant officers and employees regarding disclosure controls and procedures and internal control over financial reporting, consistent with certifications provided to BNPP immediately prior to the Completion of the IPO or in accordance with BNPP’s internal standards, including materiality; and

 

(iii)                               Advance Notice.  The Company shall inform BNPP promptly of any events or developments that might reasonably be expected to materially affect the Company’s financial condition and results of operations.

 

(c)                                  The Company agrees that, until the Non-Control Date (or such earlier date as BNPP shall determine) the Company and its Subsidiaries shall continue to provide Representatives of BNPP and its Subsidiaries with reasonable access to the Company’s personnel (including senior-level management and other employees) and data, in a manner consistent with the status of the Company as a consolidated Subsidiary of BNPP (if then applicable) and BNPP’s control of the Company and its Subsidiaries for purposes of the BHC Act or any other Applicable Law to which BNPP is subject.

 

(d)                                 BNPP agrees that, until the Non-Control Date, BNPP and its Subsidiaries, including Bank of the West, shall continue to, and BNPP shall cause its Subsidiaries, including Bank of the West, to continue to (i) provide Representatives of the Company with reasonable access to BNPP’s and its Subsidiaries’ personnel (including senior-level management and other employees) and data, in a manner consistent with the status of BNPP, or its Subsidiary, as the corporate parent of the Company (if then applicable) and (ii) provide the Company with any data or services necessary to perform its obligations under this Agreement.

 

(e)                                  For a period of five years following the Non-Control Date, subject to an extension of up to ten years upon the demonstration of a legal, tax or regulatory requirement for such extension by the requesting Party, and subject at all times to any restrictions under Applicable Law, BNPP and the Company shall retain the right to access such records of the other or its Subsidiaries, including Bank of the West, which exist resulting from BNPP’s control or ownership of all or a portion of the Company and its Subsidiaries.  Upon reasonable notice and at each Party’s own expense, BNPP (and its authorized Representatives) and the Company (and its authorized Representatives) shall be afforded access to such records at reasonable times and during normal business hours, and each Party (and its authorized Representatives) shall be permitted, at its own expense, to make abstracts from, or copies of, any such records; provided that access to such records may be denied if (a) BNPP or the Company, as the case may be, cannot demonstrate a legitimate business need (during the five year period following the Non-Control Date), or a legal, tax or regulatory requirement (during the extension period described above), for such access to the records; (b) the information contained in the records is subject to any applicable confidentiality commitment to a third party; (c) a bona fide competitive reason exists to deny such access; (d) the records are to be used for the initiation of, or as part of, a suit

 

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or claim against the other Party; (e) such access would serve as a waiver of any privilege afforded to such record; or (f) such access would unreasonably disrupt the normal operations of BNPP, the Company or their Subsidiaries, as the case may be.  Notwithstanding the foregoing, nothing in this Section 6.3 shall require either Party or its Subsidiaries to modify its record retention policy as may be in effect from time to time to retain or preserve any records that in the absence of this Section 6.3 would otherwise be exempt from such retention requirement.

 

(f)                                   In connection with its provision of information to BNPP pursuant to Section 4.1(a), the Company may implement reasonable procedures to restrict access to such information to only those Persons who BNPP reasonably determines have a need to access such information.

 

Section 4.3                                    General Information Requirements.

 

(a)                                 All information provided by the Company or any of its Subsidiaries to BNPP pursuant to Section 4.2 shall be in the form and with the level of detail reasonably requested by BNPP.  All financial statements and information provided by the Company or any of its Subsidiaries to BNPP pursuant to Section 4.2 shall be provided under Applicable Accounting Standards with a reconciliation to GAAP.  BNPP shall provide the Company with at least 30 days’ notice of any change in its administrative practices and policies as they relate to the obligations of the Company pursuant to this Section 4.3(a) or (b), including any change in such policies relating to reporting times and delivery methods.

 

(b)                                 With respect to any information provided by the Company or any of its Subsidiaries to BNPP that is contained in, or used in the preparation of, any public disclosure of BNPP, the Company shall not provide any such information that contains an untrue statement of a material fact, or omits to state a material fact necessary to make such information not misleading.

 

(c)                                  With respect to any information provided by BNPP or any of its Subsidiaries to the Company that is contained in, or used in the preparation of, any public disclosure of the Company, BNPP shall not provide any such information that contains an untrue statement of a material fact, or omits to state a material fact necessary to make such information not misleading.

 

Section 4.4                                    Matters Concerning Auditors.

 

(a)                                 Until the Deconsolidation Date (or such earlier date as BNPP shall determine):

 

(i)                                     BNPP shall have full access, during normal business hours, to the Company Auditor and to the Company’s internal audit function (through the Company’s head of internal audit), including access to work papers and the personnel responsible for conducting the Company’s quarterly reviews and annual audit, and shall be provided with copies of all material correspondence between the Company and the Company Auditor;

 

(ii)                                  the Company shall extend all reasonably requested cooperation with the BNPP Auditor in connection with BNPP’s internal and external audit function;

 

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(iii)                               the Company shall instruct the Company Auditor to perform the work requested by the BNPP Auditor pursuant to this Agreement, and the Company shall use its reasonable best efforts to enable the Company Auditor to comply with the instructions received; and

 

(iv)                              upon reasonable notice, the Company shall authorize the Company Auditor to make available to the BNPP Auditor during normal business hours both the personnel responsible for conducting the Company’s quarterly reviews and annual audit and, consistent with customary professional practice and courtesy of such auditors with respect to the furnishing of work papers, work papers related to the quarterly review or annual audit of the Company.

 

(b)                                 Neither Party shall take any action that would cause either the Company Auditor or the BNPP Auditor not to be independent with respect to the Company or BNPP, respectively.

 

Section 4.5                                    Release of Information and Public Filings.

 

(a)                                 Until the Non-Control Date (or such earlier date as BNPP shall determine):

 

(i)                                     to the extent practicable under the circumstances, the Company shall (A) coordinate with BNPP with respect to the public release of any material information relating to the Company; and (B) provide BNPP with a copy of any such proposed public release no later than two (2) Business Days prior to publication, and shall consider in good faith incorporating any comments provided thereon by BNPP and received by the Company reasonably in advance of such publication;

 

(ii)                                  BNPP shall (A) coordinate with the Company with respect to the public release of any material information relating to the Company, and (B) to the extent practicable, provide the Company with a copy of any such proposed public release no later than two (2) Business Days prior to publication, and shall consider in good faith incorporating any comments provided thereon by the Company and received by BNPP reasonably in advance of such publication.  Notwithstanding anything to the contrary set forth in this Agreement, except to the extent required by Applicable Law, BNPP shall not release any material information relative to the Company prior to the public release thereof by the Company;

 

(iii)                               to the extent practicable, each Party shall give the other Party an opportunity to review the information therein relating to the Company and its Subsidiaries and to comment thereon.  In the event that the Company is required by Applicable Law to publicly release information concerning the Company’s financial information for a period for which BNPP has yet to publicly release financial information, the Company shall provide BNPP notice of such release of such information as soon as practicable prior to such release of such information; and

 

(iv)                              each of BNPP and the Company shall take reasonable steps to cooperate with each other in connection with the preparation, printing, filing, and public dissemination of their respective annual and quarterly statements, their respective audited annual financial statements, their respective annual reports to stockholders, any other required

 

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regulatory filings and, with respect to the Company, annual, quarterly and current reports under the Securities Act, any prospectuses and other filings made with the SEC.

 

(b)                                 No rights under Section 4.5(a) shall apply to the extent that they would prevent the Company from complying with its disclosure or other obligations under Applicable Law.

 

Section 4.6                                    Information in Connection with Regulatory or Supervisory Requirements.

 

(a)                                 Until the Non-Control Date and subject to any restrictions under Applicable Law:

 

(i)                                     the Company shall, and shall cause its Subsidiaries to, (A) provide, as promptly as reasonably practicable, but in any case within three (3) Business Days of any request from BNPP (unless not reasonably available within such time, in which case as soon as possible thereafter), any information, records or documents (1) requested or demanded by any Governmental Authority having jurisdiction or oversight authority over BNPP or any of its Subsidiaries or (2) deemed necessary or advisable by BNPP in connection with any filing, report, response or communication made by BNPP or its Subsidiaries with or to a Governmental Authority having jurisdiction or oversight authority over BNPP or any of its Subsidiaries, whether made pursuant to a specific request from such Governmental Authority or in the ordinary course, and (B) upon reasonable notice, provide access to any Governmental Authority having jurisdiction or oversight authority over BNPP or any of its Subsidiaries to its offices, employees and management in a reasonable manner where and as required under Applicable Law.

 

(ii)                                  BNPP shall, and shall cause its Subsidiaries to provide, as promptly as reasonably practicable, but in any case within three (3) Business Days of any request from the Company (unless not reasonably available within such time, in which case as soon as possible thereafter), (A) financial, accounting taxation and other information and records of, or confirmations from, BNPP and its Subsidiaries, and (B) access to relevant personnel of BNPP and its Subsidiaries, in each case to the extent such information or access is necessary for the Company to comply with any Applicable Law or to meet the requirements of any Governmental Authority or securities exchange to which the Company is subject.

 

(b)                                 Each Party shall use its reasonable best efforts to keep the other Party informed of the type of information such Party expects to require on a regular basis (including the expected timing requirements for such information) in order to meet its reporting or filing obligations, and the reporting and filing obligations of its Subsidiaries, with Governmental Authorities; provided, however, that no failure to abide by this Section 4.6(b) shall affect the validity of any demand made pursuant to Section 4.6(a).

 

(c)                                  Notwithstanding the foregoing, if either Party reasonably determines that any provision of information pursuant to this Section 4.6 could be commercially detrimental to such Party’s business, violate any Applicable Law (including any Applicable Law relating to confidential supervisory information) or result in the waiver of any privilege, the Parties shall

 

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take all reasonable measures to permit the provision of such information in a manner that avoids any such detriment, violation or waiver.  If, after the Parties have taken such measures, such Party is unable to provide any such information other than in a manner that could violate Applicable Law, such Party shall not be required to provide such information.  For the avoidance of doubt, neither Party shall be required to disclose confidential supervisory information to the other Party pursuant to the information sharing provisions of this Agreement, including this Section 4.6, or to any other Person, in all cases to the extent prohibited by Applicable Law.

 

(d)                                 Each Party shall use its reasonable best efforts to obtain any consent required under Applicable Law to share any information requested pursuant to Section 4.6(b).

 

Section 4.7                                    Implementation with Respect to Legal Disclosures.

 

(a)                                 All requests for information or documents under Sections 4.1, 4.2 or 4.6(a)(i) relating to legal or regulatory matters or with respect to which legal privilege may be sought or asserted shall be made solely to the office of the General Counsel of the Company, with a copy to the Company Bank Subsidiary, Attention:  David Rair (or as the Company shall otherwise direct in writing), and all responses thereunder shall be made solely to the office of the General Counsel of BNP Paribas USA, Inc.  For the avoidance of doubt, such information or documents contained in databases, reports or systems of the Company to which BNPP has unrestricted access prior to the date hereof may be redacted, or access to the relevant databases, reports or systems may be restricted or denied, to the extent necessary so that such information and documents are handled in accordance with this Section 4.6.

 

(b)                                 All requests for information or documents under Section 4.6(a)(ii) shall be made solely to the office of the General Counsel of BNP Paribas USA, Inc. and all responses thereunder shall be made solely to the office of the General Counsel of the Company, with a copy to the Company Bank Subsidiary, Attention:  David Rair (or as the Company shall otherwise direct in writing).

 

(c)                                  If the Party required to deliver the information or documents pursuant to Sections 4.1, 4.2 or 4.6 (the “Information Party”) believes in good faith, based upon legal advice (from internal or external counsel), that the delivery of any information or documents pursuant to this Agreement would cause the loss of any applicable legal privilege (or create a risk of such loss), then both Parties shall work in good faith to determine an alternate means of delivering the requested information or documents, or the substance thereof, that does not result in the loss of such privilege.  If needed to preserve a legal privilege, the Parties shall negotiate in good faith and enter into a customary common interest agreement in advance of, and as a condition to, such delivery.  Notwithstanding the foregoing, if no alternate means can be agreed by the Parties and external counsel to the Information Party informs the other Party in writing that a common interest cannot be established, or with sufficient confidence be asserted, to preserve the legal privilege with respect to the information or documents in question, even if a common interest agreement were to be entered into, or that for any other reason the information or documents cannot be delivered without loss of the legal privilege (such external counsel to explain the reasons for its conclusion briefly but in reasonable detail so that the other Party can review the legal analysis with its own counsel), then the Information Party is excused from providing such

 

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information or documents, but only to the extent and for the time necessary to preserve the privileged character thereof.

 

Section 4.8                                    Information Concerning BNPP Equity Awards.  Each Party shall provide the other Party with any information reasonably requested in connection with the continued vesting of equity awards granted by BNPP to employees of the Company and its Subsidiaries prior to the Completion of the IPO in accordance with their respective terms.  In the case of the Company, the information provided shall include, upon request, information concerning the value, vesting schedule, outstanding amount of BNPP restricted stock and results of performance conditions for each employee.

 

Section 4.9                                    Expenses.  Except as otherwise set forth in the Expense Reimbursement Agreement, the Company shall be responsible for any expenses it incurs in connection with the fulfillment of its obligations under this Article IV.

 

ARTICLE V
  EXCHANGE OF COMMON STOCK FOR NON-VOTING COMMON STOCK

 

Section 5.1                                    Exchange.

 

(a)                                 Upon at least ten (10) Business Days prior written notice from BNPP, the Company shall exchange all or part of the shares of Common Stock Beneficially Owned by BNPP for an equal number of fully paid and non-assessable shares of Non-Voting Common Stock in accordance with the procedures set forth in this Section 5.1.

 

(b)                                 Any notice requesting exchange of shares of Common Stock delivered pursuant to Section 5.1(a) shall contain (i) the name of each registered holder of shares of Common Stock Beneficially Owned by BNPP to be exchanged for shares of Non-Voting Common Stock and (ii) the number of shares of Common Stock each such registered holder desires to exchange for shares of Non-Voting Common Stock.

 

(c)                                  The Company shall promptly deliver to any holder of shares of Common Stock for which an election of exchange is given in accordance with this Section 5.1 a stock certificate in the name of such holder, or evidence of uncertificated shares registered in the name of such holder, representing the applicable number of shares of Non-Voting Common Stock issued in exchange for the shares of Common Stock exchanged.  All shares of Non-Voting Common Stock issued in exchange for shares of Common Stock pursuant to this Section 5.1 shall be validly issued and, upon issuance, fully paid and non-assessable.

 

(d)                                 The Company shall bear all costs and expenses incurred by it in connection with, and any issuance tax (other than stock transfer tax) resulting from, the exchange of shares of Common Stock pursuant to this Section 5.1.

 

(e)                                  The Company shall from time to time reserve for issuance out of its authorized but unissued shares of Non-Voting Common Stock, or shall keep available (solely for the purposes of issuance upon exchange of shares of Common Stock) shares of Non-Voting Common Stock held by the Company as treasury stock, the number of shares of Non-Voting

 

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Common Stock into which all outstanding shares of Common Stock held by BNPP or a Subsidiary of BNPP may be exchanged.

 

(f)                                   At such time that BNPP elects to transfer any of its Beneficially Owned Non-Voting Common Stock, such Non-Voting Common Stock will convert back into Common Stock in accordance with the terms of Section 4.2 of the Company’s Amended and Restated Certificate of Incorporation.

 

ARTICLE VI
  OTHER PROVISIONS

 

Section 6.1                                    Related Party Transactions Policy.  The review and approval of the audit committee in accordance with the charter of the audit committee and the Company’s related party transaction policy shall be required prior to the Company or any Subsidiary of the Company entering into (i) any transaction that would be reportable by the Company pursuant to Item 404(a) of Regulation S-K in the Company’s subsequent Annual Report on Form 10-K or (ii) any material amendment to this Agreement.

 

Section 6.2                                    Internal Communications Protocols.  In addition to the rights set forth elsewhere in this Agreement, until the Non-Control Date, the Company agrees to consult with BNPP prior to issuing any internal communications which could reasonably be expected to be material to BNPP or to BNPP’s control of the Company for purposes of the BHC Act.

 

Section 6.3                                    Confidentiality.

 

(a)                                 Subject to Section 6.3(b), from and after the date hereof, each Party that receives or obtains Confidential Information, or whose Subsidiaries receive or obtain Confidential Information (collectively, the “Receiving Party”), from the other Party or any of its Subsidiaries (collectively, the “Disclosing Party”) as a result of the transactions contemplated by this Agreement shall treat such Confidential Information as confidential, shall use such Confidential Information only for the purposes of performing or giving effect to this Agreement and shall not disclose or use any such Confidential Information except as provided herein.  Notwithstanding anything to the contrary in this Agreement, neither Party shall be permitted to disclose or use any confidential supervisory information of the other Party to the extent prohibited by Applicable Law.

 

(b)                                 Section 6.3(a) shall not prohibit disclosure or use of any Confidential Information if and to the extent:

 

(i)                                     the disclosure or use is required by Applicable Law to a Governmental Authority (provided that, to the extent practicable and permitted by Applicable Law, prior to such disclosure or use the Receiving Party shall (a) promptly notify the Disclosing Party of such requirement and provide the Disclosing Party with a list of Confidential Information to be disclosed (unless the provision of such notice is not permissible under Applicable Law) and (b) reasonably cooperate in obtaining a protective order covering, or confidential treatment for, such Confidential Information);

 

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(ii)                                  the disclosure is to a Governmental Authority having jurisdiction over the Receiving Party in connection with ordinary course discussions with, and examinations by, such Governmental Authority;

 

(iii)                               the disclosure or use is required for the purpose of any judicial proceedings arising out of this Agreement or any other agreement entered into under or pursuant to this Agreement or the disclosure is made in connection with the tax affairs of the Disclosing Party;

 

(iv)                              the disclosure is made to the Receiving Party’s Representatives on a need-to-know basis (with the understanding that the Receiving Party shall be responsible for any breach by such Persons of this Section 6.3);

 

(v)                                 the Confidential Information is or becomes generally available to the public (other than as a result of an unauthorized disclosure, directly or indirectly, by the Receiving Party or its Representatives);

 

(vi)                              the Confidential Information is or becomes available to the Receiving Party on a non-confidential basis from a source other than the Disclosing Party (provided that such sources are not known by the Receiving Party to be subject to another confidentiality obligation);

 

(vii)                           the disclosure or use of such Confidential Information is made with the Disclosing Party’s prior written approval; or

 

(viii)                        subject to Applicable Law, the disclosure or use of such Confidential Information is made by BNPP or any of its Subsidiaries in connection with the sale of any shares of Common Stock or Non-Voting Common Stock Beneficially Owned by BNPP or any of its Subsidiaries (provided that the recipient of any such Confidential Information shall agree to keep such Confidential Information confidential on terms and conditions that are no less favorable to the Company and its Subsidiaries than the provisions of this Section 6.3).

 

(c)                                  Each Party’s Confidential Information shall remain the property of that Party except as expressly provided otherwise by the other provisions of this Agreement. Except as otherwise provided in this Agreement, each Party shall use at least the same degree of care, but in any event no less than a reasonable degree of care, to prevent disclosing to third parties the Confidential Information of the other as it employs to avoid unauthorized disclosure, publication or dissemination of its own information of a similar nature.

 

(d)                                 In the event of any disclosure or loss of any Confidential Information of the Disclosing Party due to the fault of the Receiving Party, the Receiving Party shall promptly, at its own expense: (a) notify the Disclosing Party in writing; and (b) cooperate in all reasonable respects with the Disclosing Party to minimize the violation and any damage resulting therefrom.

 

(e)                                  For the avoidance of doubt, any BNPP Director (or, if no BNPP Directors remain on the Board of Directors, the BNPP Authorized Person) may disclose any information about the Company and its Subsidiaries received by such BNPP Director (whether or not in his capacity as a Director of the Company) (or the BNPP Authorized Person) to the other BNPP

 

24

 

Directors, if any, and to BNPP and its Subsidiaries, provided that any such information disclosed that would otherwise constitute Confidential Information shall be treated by BNPP and its Subsidiaries in accordance with this Section 6.3.

 

Section 6.4                                    Director and Officer Indemnification; Liability Insurance.

 

(a)                                 Until at least the day after the last date on which a BNPP Individual is a Director of the Company, the Company shall grant indemnification (including advancement of expenses) to each such Director of the Company to the greatest extent permitted under Section 145 of the General Corporation Law of the State of Delaware and other Applicable Law.  Such indemnification and advancement shall continue as to any BNPP Individual (i) who becomes entitled to indemnification or advancement on or prior to such date, notwithstanding any change (except those changes made as required by Applicable Law) in the Company’s indemnification or advancement policies following such date, and (ii) with respect to liabilities existing or arising from events that have occurred on or prior to such date, notwithstanding such BNPP Individual’s ceasing to be a Director of the Company.

 

(b)                                 Insurance policies covering Directors, officers and employees of the Company, BNPP Individuals, the Company, BNPP and the respective Subsidiaries of the Company and BNPP will be maintained in accordance with the terms and conditions of the Insurance Agreement.

 

Section 6.5                                    Deconsolidation Date Determination.  BNPP shall provide written confirmation informing the Company that the Deconsolidation Date has occurred.  BNPP shall provide such written confirmation promptly, but in any case within seven (7) Business Days after the Deconsolidation Date.

 

ARTICLE VII
  INDEMNIFICATION

 

Section 7.1                                    Indemnification.

 

(a)                                 To the fullest extent permitted by Applicable Law, BNPP hereby agrees to indemnify, defend and hold harmless the Company, its Subsidiaries and their respective former and current directors, officers and employees and each of the heirs, executors, successors and assigns of the foregoing, from and against any and all Losses relating to, arising out of or resulting from, directly or indirectly, any breach by BNPP or any of its Subsidiaries of this Agreement.

 

(b)                                 To the fullest extent permitted by Applicable Law, the Company hereby agrees to indemnify, defend and hold harmless BNPP, its Subsidiaries and each of the respective former and current directors, officers and employees and each of the heirs, successors, executers and assigns of the foregoing, from and against any and all Losses relating to, arising out of or resulting from, directly or indirectly, any breach by the Company or any of its Subsidiaries of this Agreement.

 

25

 

Section 7.2                                    Procedure for Indemnification of Third-Party Claims.

 

(a)                                 Notice of Claim.  If, at or following the date of this Agreement, any Person entitled to indemnification hereunder an (“Indemnitee”) shall receive notice or otherwise learn of a Third-Party Claim with respect to which either Party (an “Indemnifying Party”) may be obligated to provide indemnification to such Indemnitee pursuant to Section 7.1, such Indemnitee shall give such Indemnifying Party written notice thereof as soon as practicable but in any event within twenty (20) days (or sooner if the nature of the Third-Party Claim so requires) after becoming aware of such Third-Party Claim.  Any such notice shall describe the Third-Party Claim in reasonable detail, including the facts and circumstances giving rise to such claim for indemnification, and include copies of all notices and documents (including court papers) received by the Indemnitee relating to the Third-Party Claim.  Notwithstanding the foregoing, the failure of any Indemnitee or other Person to give notice as provided in this Section 7.2(a) shall not relieve the related Indemnifying Party of its obligations under this Article VII, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice and then only to the extent of such prejudice.

 

(b)                                 Control of Defense.  An Indemnifying Party may elect to defend, at such Indemnifying Party’s own expense and by such Indemnifying Party’s own counsel, any Third-Party Claim.  Within twenty (20) days after the receipt of notice from an Indemnitee in accordance with Section 7.2(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election as to whether the Indemnifying Party will assume responsibility for defending such Third-Party Claim.  After notice from an Indemnifying Party to an Indemnitee of its election to assume the defense of a Third-Party Claim, such Indemnitee shall have the right to employ separate counsel and to monitor and participate in (but not control) the defense, compromise or settlement thereof, but the fees and expenses of such counsel shall be the expense of such Indemnitee, except that the Indemnifying Party shall be liable for the fees and expenses of counsel employed by the Indemnitee (i) for any period during which the Indemnifying Party has not assumed the defense of such Third-Party Claim (other than during any period in which the Indemnitee shall have failed to give notice of the Third-Party Claim in accordance with Section 7.2(a)), and (ii) if a conflict exists between the positions of the Indemnifying Party and the Indemnitee, as reasonably determined in good faith by the Indemnitee, and the Indemnitee believes it is in the Indemnitee’s best interest to obtain independent counsel.

 

(c)                                  If an Indemnifying Party elects not to assume responsibility for defending a Third-Party Claim, or fails to notify an Indemnitee of its election as provided in Section 7.2(b), such Indemnitee may defend such Third-Party Claim at the cost and expense of the Indemnifying Party.

 

(d)                                 If an Indemnifying Party elects to assume the defense of a Third-Party Claim in accordance with the terms of this Agreement, the Indemnitee shall agree to any settlement, compromise or discharge of such Third-Party Claim that the Indemnifying Party may recommend and that by its terms obligated the Indemnifying Party to pay the full amount of the liability in connection with such Third-Party Claim and that releases the Indemnitee completely in connection with such Third-Party Claim; provide that Indemnitee shall not be required to admit any fault.

 

26

 

(e)                                  No Indemnifying Party shall consent to an entry of any judgment or enter into any settlement of any Third-Party Claim without the consent of the applicable Indemnitee or Indemnitees if the effect thereof is to permit any injunction, declaratory judgment, other order or other nonmonetary relief to be entered, directly or indirectly, against any Indemnitee.

 

(f)                                   Whether or not the Indemnifying Party assume the defense of a Third-Party Claim, no Indemnitee shall admit any liability with respect to, or settle, compromise or discharge, such Third-Party Claim without the Indemnifying Party’s prior written consent which shall not be unreasonably withheld.

 

Section 7.3                                    Additional Matters.

 

(a)                                 Notice of Direct Claims.  Any claim on account of a Loss that does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the related Indemnifying Party as soon as practicable but in any event within twenty (20) days after becoming aware of such claim; provided that the failure of any Indemnitee to give notice as provided in this Section 7.3(a) shall not prejudice the ability of the Indemnitee to do so at a later time except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice and then only to the extent of such prejudice.  Such Indemnifying Party shall have a period of thirty (30) days after the receipt of such notice within which to respond thereto.  If such Indemnifying Party does not respond within such 30-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such Party as contemplated by this Agreement.

 

(b)                                 Subrogation.  In the event of payment by or on behalf of any Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right, defense or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim or against any other Person.  Such Indemnitee shall cooperate with such Indemnifying Party, in prosecuting any subrogated right, defense or claim.

 

(c)                                  Substitution.  In the event of an Action in which the Indemnifying Party is not a named defendant, if either the Indemnitee or Indemnifying Party shall so request, the Parties shall endeavor to substitute the Indemnifying Party for the, or add the Indemnifying Party as an additional, named defendant.  If such substitution or addition cannot be achieved for any reason or is not requested, the names defendant shall allow the Indemnifying Party to manage the Action as set forth in Section 7.2 and this Section 7.3, and the Indemnifying Party shall fully indemnify the named defendant against all costs of defending the Action (including court costs, sanctions imposed by a court, attorneys’ fees, experts’ fees and all other external expenses), the costs of any judgment or settlement and the cost of any interest or penalties relating to any judgment or settlement other than costs arising as a result of the negligence of the defendant.

 

(d)                                 Good Faith.  Subject to the other provisions of this Article VII, each Indemnitee shall act in good faith, and will make the same decisions in the use of personnel and the incurring of expenses as it would make if it were engaged and acting entirely at its own cost

 

27

 

and for its own account regarding the conduct of any proceedings or the taking of any action for which indemnification may be sought.

 

(e)                                  Duty to Mitigate.  Each Indemnitee shall use its commercially reasonable efforts to mitigate any Loss that is subject to indemnification pursuant to the provisions of Section 7.1.  In the event an Indemnitee fails to so mitigate a Loss, the Indemnifying Party shall have no liability for any portion of such Loss that reasonably could have been avoided had the Indemnitee made such efforts.

 

Section 7.4                                    Payments.  The Indemnifying Party shall pay all amounts payable pursuant to this Article VII, by wire transfer of immediately available funds, promptly following receipt from an Indemnitee of a bill, together with all accompanying reasonably detailed back-up documentation, for a Loss that is the subject of indemnification under this Agreement, unless the  Indemnifying Party in good faith disputes the Loss, in which event it shall so notify the Indemnitee.  In any event, the Indemnifying Party shall pay to the Indemnitee, by wire transfer of immediately available funds, the amount of any Loss for which the Indemnifying Party is liable under this Agreement no later than three (3) Business Days following any Final Determination of any dispute with respect to such Loss finding the Indemnifying Party’s liability therefor.  All payments made pursuant to this Article VII shall be made in U.S. dollars.

 

ARTICLE VIII
  SETTLEMENT; DISPUTE RESOLUTION

 

Section 8.1                                    Resolution Procedure.  The resolution of any Dispute that arises between the Parties shall be governed by Section 6 of the Master Reorganization Agreement.

 

ARTICLE IX
  GENERAL PROVISIONS

 

Section 9.1                                    Obligations Subject to Applicable Law.  The obligations of each Party under this Agreement shall be subject to Applicable Law, and, to the extent inconsistent therewith, the Parties shall adopt such modified arrangements as are as close as possible to the requirements of this Agreement while remaining compliant with Applicable Law, provided, however, that the Company shall fully avail itself of all exemptions, phase-in provisions and other relief available under Applicable Law before any modified arrangements shall be adopted.

 

Section 9.2                                    Notices.  Unless otherwise provided in this Agreement, all notices and other communications hereunder shall be in writing, shall reference this Agreement and shall be deemed to have been duly given when (i) delivered, (ii) sent by facsimile or electronic mail or (iii) deposited in the United States mail or private express mail, postage prepaid.  Such communications must be sent to the respective Parties at the following addresses (or at such other addresses for a party as shall be specified by like notice):

 

28

 

If to BNPP:

 

BNP Paribas
  3 rue d’Antin
 75002 Paris, France
 Attention:  Pierre Bouchara — Head of Group Financial Management
 Email:  pierre.bouchara@bnpparibas.com

 

If to the Company:

 

First Hawaiian, Inc.
 999 Bishop Street
 Honolulu, Hawaii 96813
 Attention:  Robert S. Harrison, Chairman and CEO
 E-mail:  rharrison@fhb.com

 

Section 9.3                                    Binding Effect; Assignment; No Third-Party Beneficiaries.  This Agreement shall be binding upon and inure to the benefit of the Parties and their respective  successors and permitted assigns. Except as expressly provided in this Agreement, this Agreement and all rights hereunder may not be assigned, in whole or in part, directly or indirectly, by any Party except by prior written consent of the other Party, and any purported assignment without such consent shall be null and void; provided, that any Party may assign this Agreement to a purchaser of all or substantially all of the properties and assets of such Party (whether by sale, merger or otherwise) so long as such purchaser expressly assumes, in a written instrument in form reasonably satisfactory to the non-assigning Party, the due and punctual performance or observance of every agreement and covenant of this Agreement on the part of the assigning Party to be performed or observed. The Parties intend that this Agreement shall not benefit or create any right or cause of action in or on behalf of any Person other than the Parties and their respective Subsidiaries and this Agreement shall not provide any third-person with any remedy claim, liability, reimbursement, claim of action or other right in excess of those existing without reference to this Agreement; provided that the provisions of Article VII shall inure to the benefit of each of the Indemnified Persons.

 

Section 9.4                                    Severability.  In the event any one or more of the provisions contained in this Agreement or the application thereof to any Person or circumstance is determined by a court of competent jurisdiction to be invalid, illegal, void or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein, or the application of such provisions to Persons or circumstances or in jurisdictions other than those as to which have been held invalid, illegal, void or unenforceable, shall remain in full force and effect and not in any way be affected, impaired or invalidated thereby.  The Parties shall endeavor in good faith negotiations to replace the invalid, illegal, void or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of invalid, illegal, void or unenforceable provisions.

 

Section 9.5                                    Entire Agreement; Amendment.  This Agreement and the Ancillary Agreements shall constitute the entire agreement between the parties with respect to the subject matter hereof and shall supersede all previous agreements, negotiations, discussion,

 

29

 

understandings, conversations, commitments and writings with respect to such subject matter.  No provisions of this Agreement shall be deemed waived, amended, supplemented or modified by any Party hereto, unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representative of the Party against whom it is sought to enforce such waiver, amendment, supplement or modification.

 

Section 9.6                                    Waiver.  Any waiver, permit, consent or approval of any kind or character of any breach or default under this Agreement, or any waiver of any provision or condition of this Agreement shall be effective only to the extent specifically set forth in writing. Notwithstanding any provision set forth in this Agreement, no Party shall be required to take any action or refrain from taking any action that would cause it to violate any Applicable Law, statute, legal restriction, regulation, rule or order of any Governmental Authority.  The failure of any Party to require strict performance by any other Party of any provision in this Agreement will not waive or diminish that Party’s right to demand strict performance thereafter of that or any other provision hereof.

 

Section 9.7                                    Governing Law; Consent to Jurisdiction.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to  contracts made and to be performed in the State of New York and without regard to its choice of law principles. Any action or proceeding arising out of or relating to this Agreement shall be brought in the courts of the State of New York located in the County of New York or in the United States District Court for the Southern District of New York (if any Party to such action or proceeding has or can acquire jurisdiction), and each of the Parties hereto or thereto irrevocably submits to the exclusive jurisdiction of each such court in any such action or proceeding, waives any objection it may now or hereafter have to venue or to convenience of forum, agrees that all claims in respect of the action or proceeding shall be heard and determined only in any such court and agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other court.  The Parties to this Agreement agree that any of them may file a copy of this paragraph with any court as written evidence of the knowing, voluntary and bargained agreement between the Parties hereto and thereto irrevocably to waive any objections to venue or to convenience of forum.  Process in any action or proceeding referred to in the second sentence of this Section 9.7 may be served on any Party to this Agreement anywhere in the world.

 

Section 9.8                                    Waiver of Jury Trial.  EACH PARTY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES (TO THE EXTENT PERMITTED BY APPLICABLE LAW) ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF ANY DISPUTE ARISING UNDER OR RELATING TO THIS AGREEMENT AND AGREES THAT ANY SUCH DISPUTE SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A JURY.

 

Section 9.9                                    Counterparts.  This Agreement may be executed in one or more counterparts, including by facsimile or by e-mail delivery of a “.pdf” format data file, all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by each of the Parties and delivered to the other Party.

 

30

 

Section 9.10                             Further Assurances.  In addition to the actions specifically provided for elsewhere in this Agreement, each Party hereto shall execute and deliver such additional documents, instruments, conveyances and assurances and take, or cause to be taken, all actions, and to do, or cause to be done, all things reasonably necessary, proper or advisable to carry out the provisions of this Agreement and the Ancillary Agreements and give effect to the transactions contemplated by this Agreement and the Ancillary Agreements and the documents to be delivered hereunder and thereunder.

 

Section 9.11                             Term; Survival.  The covenants, obligations and other agreements contained in this Agreement shall continue until such time as they are fully performed or satisfied in accordance with their terms, or are no longer required to be performed or satisfied; provided that no covenant, obligation or other agreement shall be considered to be performed or satisfied to the extent of any breach of such covenant, obligation or other agreement.

 

Section 9.12                             Subsidiary and Affiliate Action.  Wherever a Party has an obligation under this Agreement to “cause” a Subsidiary or Affiliate of such Party or any such Subsidiary’s or Affiliate’s officers, directors, management or employees to take, or refrain from taking, any action, or such action that may be necessary to accomplish the purposes of this Agreement, such obligation of such Party shall be deemed to include an undertaking on the part of such Party to cause such Subsidiary or Affiliate to take such necessary action.  Wherever this Agreement provides that a Subsidiary or Affiliate of a Party has an obligation to act or refrain from taking any  action, such party shall be deemed to have an obligation under this Agreement to cause such Subsidiary or Affiliate, or any such Subsidiary’s or Affiliate’s officers, directors, management or employees, to take, or refrain from taking, any action, or such action as may be necessary to accomplish the purposes of this Agreement.  To the extent necessary or appropriate to give meaning or effect to the provisions of this Agreement or to accomplish the purposes of this Agreement, BNPP and the Company, as the case may be, shall be deemed to have an obligation under this Agreement to cause any Subsidiary thereof to take, or refrain from taking, any action, and to cause such Subsidiary’s officers, directors, management or employees, to take, or refrain from taking, any action otherwise contemplated herein.  Any failure by an Affiliate of BNPP or the Company to act or refrain from taking any action contemplated by this Agreement shall be deemed to be a breach of this Agreement by BNPP or the Company, respectively.

 

Section 9.13                             Expenses.  Except as otherwise expressly provided in this Agreement and in the Expense Reimbursement Agreement, each Party will bear all expenses incurred by it in connection with the performance of its obligations under this Agreement.

 

[Signature Page Follows]

 

31

 

IN WITNESS WHEREOF, the Parties have caused this Stockholder Agreement to be executed and delivered as of the date first above written.

 

	
 
    	
BNP PARIBAS
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michel Vial
    
	
 
    	
 
    	
Name:
    	
Michel Vial
    
	
 
    	
 
    	
Title:
    	
Head of Development
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Emmeline Travers
    
	
 
    	
 
    	
Name:
    	
Emmeline Travers
    
	
 
    	
 
    	
Title:
    	
Senior Analyst
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
FIRST HAWAIIAN, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert S. Harrison
    
	
 
    	
 
    	
Name:
    	
Robert S. Harrison
    
	
 
    	
 
    	
Title:
    	
Chairman of the Board   and Chief Executive OfficerExhibit 10.2

 

	
 
    

 

TRANSITIONAL SERVICES AGREEMENT

 

between

 

BNP PARIBAS,

 

BANCWEST HOLDING INC.,

 

BANK OF THE WEST,

 

FIRST HAWAIIAN, INC.,

 

and

 

FIRST HAWAIIAN BANK

 

 

Dated as of August 9, 2016

 

	
 
    

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
PAGE
    
	
 
    
	
ARTICLE I
    
	
DEFINITIONS
    
	
 
    
	
Section 1.1
    	
Definitions
    	
1
    
	
Section 1.2
    	
Interpretation
    	
7
    
	
 
    
	
ARTICLE II
    
	
SERVICES AND PROCEDURES
    
	
 
    
	
Section 2.1
    	
Provision of Services
    	
8
    
	
Section 2.2
    	
Omitted Services
    	
9
    
	
Section 2.3
    	
Replacement Services
    	
9
    
	
Section 2.4
    	
Standard of   Performance; Scope of Service
    	
10
    
	
Section 2.5
    	
Third-Party Providers
    	
10
    
	
Section 2.6
    	
Service Provider’s   Employees
    	
11
    
	
Section 2.7
    	
Availability of   Information and Records; Audit
    	
11
    
	
Section 2.8
    	
Disclaimer of Warrant
    	
12
    
	
Section 2.9
    	
Transition Support
    	
13
    
	
Section 2.10
    	
Exclusivity
    	
13
    
	
 
    
	
ARTICLE III
    
	
FEES AND PAYMENTS
    
	
 
    
	
Section 3.1
    	
Fees for Services
    	
13
    
	
Section 3.2
    	
Billing Statements
    	
14
    
	
Section 3.3
    	
Direct Payments to   Third-Party Providers
    	
14
    
	
Section 3.4
    	
Disputes Over Billing   Statements or Direct Payments
    	
14
    
	
Section 3.5
    	
Taxes
    	
15
    
	
 
    
	
ARTICLE IV
    
	
TERM AND TERMINATION
    
	
 
    
	
Section 4.1
    	
Term
    	
16
    
	
Section 4.2
    	
Termination
    	
16
    
	
Section 4.3
    	
Extension of Transition   Period
    	
17
    
	
Section 4.4
    	
Effect of Termination
    	
18
    
	
 
    
	
ARTICLE V
    
	
GOVERNANCE
    
	
 
    
	
Section 5.1
    	
Transition Working   Groups
    	
18
    
	
Section 5.2
    	
Separation Committees
    	
19
    
	
Section 5.3
    	
Steering Committee
    	
20
    

 

i

 

	
ARTICLE VI
    
	
INDEMNIFICATION
    
	
 
    
	
Section 6.1
    	
Indemnification for   Losses Related to Third-Party Contracts
    	
20
    
	
Section 6.2
    	
Indemnification for   Losses Arising Out of This Agreement
    	
21
    
	
Section 6.3
    	
Procedure for Indemnification   of Third-Party Claims
    	
22
    
	
Section 6.4
    	
Additional Matters
    	
23
    
	
Section 6.5
    	
Payments
    	
24
    
	
 
    
	
ARTICLE VII
    
	
INTELLECTUAL PROPERTY
    
	
 
    
	
Section 7.1
    	
Ownership of   Intellectual Property
    	
24
    
	
Section 7.2
    	
Licensing of   Intellectual Property
    	
25
    
	
Section 7.3
    	
Ownership of Data
    	
26
    
	
 
    
	
ARTICLE VIII
    
	
CONFIDENTIALITY; SYSTEMS SECURITY
    
	
 
    
	
Section 8.1
    	
Confidentiality
    	
26
    
	
Section 8.2
    	
Systems Security and   Breach Notification
    	
28
    
	
 
    
	
ARTICLE IX
    
	
DISPUTE RESOLUTION; LIMITATION OF LIABILITY
    
	
 
    
	
Section 9.1
    	
Resolution Procedure
    	
30
    
	
Section 9.2
    	
Limitations on Liability
    	
30
    
	
 
    
	
ARTICLE X
    
	
MISCELLANEOUS
    
	
 
    
	
Section 10.1
    	
Notices
    	
31
    
	
Section 10.2
    	
Assignment
    	
32
    
	
Section 10.3
    	
Successors and Assigns
    	
32
    
	
Section 10.4
    	
Third-Party   Beneficiaries
    	
33
    
	
Section 10.5
    	
Severability
    	
33
    
	
Section 10.6
    	
Entire Agreement;   Amendment
    	
33
    
	
Section 10.7
    	
Waiver
    	
33
    
	
Section 10.8
    	
Governing Law
    	
33
    
	
Section 10.9
    	
Jurisdiction; Service   of Process
    	
33
    
	
Section 10.10
    	
Waiver of Jury Trial
    	
34
    
	
Section 10.11
    	
Counterparts
    	
34
    
	
Section 10.12
    	
Relationship of the   Parties
    	
34
    
	
Section 10.13
    	
Force Majeure
    	
34
    
	
Section 10.14
    	
Further Assurances
    	
34
    
	
Section 10.15
    	
Subsidiary Action
    	
34
    

 

ii

 

	
Schedules
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Schedule A
    	
Third-Party Services   Provided by BWHI Providers to FHI Recipients
    	
 
    
	
 
    	
 
    	
 
    
	
Schedule B
    	
Third-Party Services   Provided by FHI Providers to BWHI Recipients
    	
 
    
	
 
    	
 
    	
 
    
	
Schedule C
    	
Direct Services   Provided from BWHI Providers to FHI Recipients
    	
 
    
	
 
    	
 
    	
 
    
	
Schedule D
    	
Direct Services   Provided from FHI Providers to BWHI Recipients
    	
 
    
	
 
    	
 
    	
 
    
	
Schedule E
    	
Direct and Third-Party   Services Provided by BNPP to FHI Recipients
    	
 
    

 

iii

 

TRANSITIONAL SERVICES AGREEMENT

 

Transitional Services Agreement (this “Agreement”), dated August 9, 2016 (the “Effective Date”), between BNP Paribas, a corporation organized and domiciled in France (“BNPP”), BancWest Holding Inc., a Delaware corporation (“BWHI”), Bank of the West, a California state-chartered bank (“BoW”), First Hawaiian, Inc., a Delaware corporation (“FHI”), and First Hawaiian Bank, a Hawaii state-chartered bank (“FHB,” and together with BNPP, BWHI, BoW and FHI, the “Parties,” and each, a “Party”).

 

RECITALS

 

WHEREAS, on April 1, 2016, BNPP effected a series of reorganization transactions (the “Reorganization”) in contemplation of the proposed initial public offering (the “IPO”) of a portion of the shares of common stock, par value $0.01 per share, of FHI (formerly known as BancWest Corporation (“BWC”)), a wholly owned subsidiary of BNPP, pursuant to a Master Reorganization Agreement by and among FHI, BWHI, BWC Holding Inc. and BNPP, dated as of April 1, 2016 (the “Master Reorganization Agreement”);

 

WHEREAS, prior to the Reorganization, FHB and BoW were bank subsidiaries of BWC and, as part of the Reorganization, were separated under independent bank holding companies with FHB remaining a direct subsidiary of FHI and BoW becoming a direct subsidiary of BWHI, a newly formed corporation which, as a result of the Reorganization, became a direct subsidiary of BNPP;

 

WHEREAS, historically, FHB and BoW, as subsidiaries of BWC, relied on certain third-party service providers to provide services pursuant to shared services contracts and relied upon each other and other affiliates of BNPP for the provision of certain services; and

 

WHEREAS, following the IPO, the Parties desire to obtain the continued provision or procurement of certain services as specified in this Agreement and the Schedules hereto and subject to, and in accordance with, the terms and conditions hereof, the Parties agree to provide or procure such services on a transitional basis from the Effective Date of this Agreement through the relevant Transition Period thereafter and to assist the other Party in the transition from these Services as provided herein.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valid consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement hereby agree as follows:

 

ARTICLE I
 DEFINITIONS

 

Section 1.1                                    Definitions.  Capitalized terms used in this Agreement shall have the meanings assigned below:

 

 

“51% Date” means the first date on which BNPP ceases to beneficially own at least 51% of the outstanding common stock of FHI.

 

“Accessing Party” has the meaning set forth in Section 8.2(a).

 

“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.

 

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

 

“Applicable Law” means any law (including common law), statute, regulation, rule, executive order, ordinance, judgment, ruling, published regulatory policy or guideline, injunction, consent, order, exemption, license, approval or permit enacted, issued, promulgated, adjudged, entered or enforced by a Governmental Authority.

 

“Billing Statement” has the meaning set forth in Section 3.2.

 

“BNPP” has the meaning set forth in the preamble.

 

“BoW” has the meaning set forth in the preamble.

 

“BoW Project Leader” has the meaning set forth in Section 5.1(a).

 

“Business Day” means any day other than a Saturday, Sunday or day on which banks in Honolulu, Hawaii, New York, New York, Paris, France or San Francisco, California are authorized or required by Applicable Law to close.

 

“BWC” has the meaning set forth in the recitals.  For the avoidance of doubt, references to BWC do not mean BWC Holding Inc. BWC Holding Inc. was renamed “BancWest Corporation” on April 1, 2016 as part of the Reorganization.

 

“BWHI” has the meaning set forth in the preamble.

 

“BWHI Group” means, collectively, BWHI and its Subsidiaries (including BoW).  For the avoidance of doubt, the BWHI Group shall not include any members of the FHI Group.

 

“BWHI Provider” means BWHI, BoW or any other Subsidiary of BWHI, as applicable.

 

“BWHI Recipient” means BWHI or BoW, as applicable.

 

“Confidential Information” means any and all information of, related to, or concerning the Party or any of its Subsidiaries disclosing such information to another Party or any other Party’s respective Subsidiaries, whether disclosed on or prior to the Effective Date, and whether disclosed in oral, written, electronic or optical form, including (i) any information relating to the business, financial or other affairs (including

 

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future plans,  financial targets, trade secrets and know-how) of the disclosing Party or such Party’s Subsidiaries, (ii) the Intellectual Property of the disclosing Party or such Party’s Subsidiaries or (iii) any information of the disclosing Party or such Party’s Subsidiaries provided in a manner which reasonably indicates the confidential or proprietary nature of such information.

 

“Disabling Procedures” has the meaning set forth in Section 8.2(c).

 

“Disclosing Party” has the meaning set forth in Section 8.1(a).

 

“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 and termination.

 

“Effective Date” has the meaning set forth in the preamble.

 

“Expense Reimbursement Agreement” means the Expense Reimbursement Agreement, effective July 1, 2016, between BancWest Corporation (formerly BWC Holding Inc.) and FHI.

 

“FHB” has the meaning set forth in the preamble.

 

“FHB Project Leader” has the meaning set forth in Section 5.1(a).

 

“FHI” has the meaning set forth in the preamble.

 

“FHI Group” means, collectively, FHI and its Subsidiaries (including FHB).  For the avoidance of doubt, the FHI Group shall not include any members of the BWHI Group.

 

“FHI Provider” means FHI, FHB or any other Subsidiary of FHI, as applicable.

 

“FHI Recipient” means FHI or FHB, as applicable.

 

“Final Determination” means, with respect to a Dispute as to indemnification for a Loss under this Agreement, (i) a written agreement between the parties to such Dispute resolving such Dispute, (ii) a final and non-appealable order or judgment entered by a court of competent jurisdiction resolving such Dispute or (iii) a final non-appealable determination rendered by an arbitration or like panel to which the parties submitted such Dispute that resolves such Dispute.

 

“Governmental Authority” means any federal, state, local, domestic or foreign agency, court, tribunal, administrative body, arbitration panel, department or other legislative, judicial, governmental, quasi-governmental entity or self-regulatory organization with competent jurisdiction.

 

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“Granting Party” has the meaning set forth in Section 8.2(a).

 

“Indemnifying Party” has the meaning set forth in Section 6.3(a).

 

“Indemnitee” has the meaning set forth in Section 6.3(a).

 

“Intellectual Property” means, in any and all jurisdictions throughout the world, any (i) patent rights, including all patents, pending patent applications (including all provisional applications, substitutions, continuations, continuations-in-part, divisions, renewals, and all patents granted thereon), and foreign counterparts of any of the foregoing; (ii) copyrights, mask works, and all registrations thereof and applications therefor; (iii) Trademarks; (iv) domain names and uniform resource locators associated with the internet, including registrations thereof; and (v) rights with respect to information and materials not generally known to the public and from which independent economic value is derived from such information and materials not being generally known to the public, including trade secrets and other confidential and proprietary information, including rights to limit the use or disclosure thereof by any Person.

 

“IPO” has the meaning set forth in the recitals.

 

“Loss” means any damages, losses, charges, liabilities, claims, demands, actions, suits, proceedings, payments, judgments, settlements, assessments, interest, penalties, and costs and expenses (including fines, penalties, reasonable attorneys’ fees and reasonable out of pocket disbursements).

 

“Master Reorganization Agreement” has the meaning set forth in the recitals.

 

“Non-Control Date” has the meaning ascribed to such term in the Stockholder Agreement.

 

“Obtaining Party” has the meaning set forth in Section 7.3.

 

“Omitted Service” has the meaning set forth in Section 2.2.

 

“Party” has the meaning set forth in the preamble.

 

“Person” means any 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.

 

“Personally Identifiable Information” means information that alone or in combination identifies an individual.

 

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

 

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“Privacy Laws” means any state, federal, or international law or regulation governing the collection, use, disclosure and/or sharing of Personally Identifiable Information, including the European Union Directive 1995/46/EC; the applicable provisions of the U.S. Financial Services Modernization Act of 1999 (15 U.S.C. §§ 6801 et seq.); the U.S. Fair Credit Reporting Act (15 U.S.C. §§ 1681 et seq.); laws regulating unsolicited email communications; security breach notification laws; laws imposing minimum security requirements; laws requiring the secure disposal of records containing credit reports and other personal data; and all other similar international, federal, state, provincial and local requirements.

 

“Project Card” has the meaning set forth in Section 2.9(a).

 

“Project Leaders” has the meaning set forth in Section 5.1(a).

 

“Providing Party” has the meaning set forth in Section 7.3.

 

“Receiving Party” has the meaning set forth in Section 8.1(a).

 

“Reorganization” has the meaning set forth in the recitals.

 

“Reorganization Effective Date” means April 1, 2016.

 

“Replacement Service” has the meaning set forth in Section 2.3.

 

“Security Breach” has the meaning set forth in Section 8.2(f).

 

“Separation Committee” has the meaning set forth in Section 5.2(a).

 

“Service Extension” has the meaning set forth in Section 4.3.

 

“Service Fee” means, with respect to each Service, the fee that the Service Recipient shall pay to the Service Provider or Third-Party Provider, as the case may be, in consideration for each Service, as provided in the column titled “Service Fee” in the applicable Schedules hereto.

 

“Service Period” means the frequency at which a Service is billed by a Service Provider (in the case of Services set forth in Schedule C or Schedule D) or a Third-Party Provider (in the case of Services set forth in Schedule A, Schedule B or Schedule E) (e.g., monthly, quarterly, annually or otherwise), consistent with billing practices prior to the Effective Date, as applicable.

 

“Service Provider” means the BWHI Provider, the FHI Provider or BNPP, as applicable.

 

“Service Provider IP” has the meaning set forth in Section 7.2(a).

 

“Service Recipient” means the BWHI Recipient or FHI Recipient, as applicable.

 

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“Service Recipient IP” has the meaning set forth in Section 7.2(b).

 

“Service Records” means, with respect to any Service, all records, data, files and other information received or generated in connection with the provision of such Service.

 

“Services” means the services and other support set forth on Schedule A, Schedule B, Schedule C, Schedule D and Schedule E, as amended from time to time, provided or procured by one or more Service Providers, in each case (i) in accordance with the terms and conditions set forth in this Agreement and (ii) other than any Service which is terminated pursuant to this Agreement.  For the avoidance of doubt, Services shall be deemed to include any Omitted Service and Replacement Service.

 

“Steering Committee” has the meaning set forth in Section 5.3(a).

 

“Stockholder Agreement” means the Stockholder Agreement, dated the Effective Date, between BNPP and FHI.

 

“Subsidiary” means, with respect to any Person, any other Person controlled by such Person.  For purposes of this Agreement, none of FHI and its Subsidiaries shall be considered Subsidiaries of BNPP or any of BNPP’s Subsidiaries.

 

“Systems” has the meaning set forth in Section 8.2(a).

 

“Tax” means any and all U.S. federal, state and local taxes, non-U.S. taxes, and other levies, fees, imposts, duties, tariffs and other charges in the nature of tax, together with any interest, penalties or additions imposed in connection therewith or with respect thereto, imposed by any Governmental Authority or political subdivision thereof, including taxes imposed on, or measured by, income, franchise, profits or gross receipts, and also alternative minimum, add-on minimum, ad valorem, value added, sales, use, service, real or personal property, capital stock, license, registration, documentary, environmental, disability, payroll, withholding, employment, social security, workers’ compensation, unemployment compensation, utility, severance, production, excise, stamp, occupation, premium, windfall profits, transfer and gains taxes and customs duties.

 

“Technology” means tangible embodiments, whether in electronic, written or other media, of technology, including inventions, ideas, designs, documentation (such as bill of materials, build instructions, test reports and invention disclosure forms), schematics, layouts, reports, algorithms, routines, software (including source code and object code), data, databases, lab notebooks, equipment, processes, prototypes and devices.

 

“Third-Party Claim” means any assertion by a Person (including a Governmental Authority) who is not a member of the FHI Group or the BWHI Group of 

 

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any claim, or the commencement by any Person of any Action, against any member of the FHI Group or the BWHI Group.

 

“Third-Party Contract” means the contract underlying any Service identified on Schedule A, Schedule B or, if applicable, Schedule E between a Service Provider and a Third-Party Provider.

 

“Third-Party Provider” has the meaning set forth in Section 2.5(a).

 

“Third-Party Provider IP” has the meaning set forth in Section 7.2(c).

 

“Third-Party Recipient IP” has the meaning set forth in Section 7.2(d).

 

“Trademarks” means trademarks, service marks, logos and design marks, trade dress, trade names, and brand names, together with all goodwill associated with any of the foregoing, and all registrations thereof and applications therefor.

 

“Transition Period” means, with respect to any Service, the period beginning on the Effective Date and continuing until the end date set forth on Schedule A, Schedule B, Schedule C, Schedule D or Schedule E as amended from time to time, and any extension to such end date in accordance with Article IV.

 

“Transition Working Group” has the meaning set forth in Section 5.1(a).

 

Section 1.2                                    Interpretation.

 

(a)                                 Unless the context otherwise requires:

 

(i)                                     references contained in this Agreement to the preamble, to the recitals and to specific Articles, Sections, Subsections or Schedules shall refer, respectively, to the preamble, recitals, Articles, Sections, Subsections or Schedules to this Agreement;

 

(ii)                                  references to any agreement or other document are to such agreement or document as amended, modified, supplemented or replaced from time to time;

 

(iii)                               references to any statute or statutory provision include all rules and regulations promulgated pursuant to such statute or statutory provision, in each case as such statute, statutory provision, rules or regulations may be amended, modified, supplemented or replaced from time to time;

 

(iv)                              references to any Governmental Authority include any successor to such Governmental Authority;

 

(v)                                 terms defined in the singular have a comparable meaning when used in the plural, and vice versa;

 

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(vi)                              the words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement;

 

(vii)                           the terms “Dollars” and “$” mean U.S. dollars;

 

(viii)                        the terms “day” and “days” mean calendar days if not used in connection with the term “Business Day,” which has the meaning set forth in Section 1.1; and

 

(ix)                              wherever the word “include,” “includes” or “including” is used in this Agreement, it shall be deemed to be followed by the words “without limitation.”

 

(b)                                 In the event of any inconsistency between this Agreement and any Schedule hereto, the terms of such Schedule shall prevail.

 

(c)                                  The headings contained in this Agreement are for reference purposes only and do not limit or otherwise affect any of the provisions of this Agreement.

 

(d)                                 The Parties have participated jointly in the negotiation and drafting of this Agreement.  In the event of an ambiguity or a question of intent or interpretation, this Agreement shall be construed as if drafted jointly 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.

 

(e)                                  In this Agreement, any provision which applies “until” a specified date shall apply on such specified date, and shall cease to apply on the date immediately following such specified date.

 

ARTICLE II
 SERVICES AND PROCEDURES

 

Section 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 hereto):

 

(i)                                     the applicable BWHI Provider shall provide or procure the provision of the Services described on Schedule A provided under the contracts identified on such Schedule to or for the applicable FHI Recipient;

 

(ii)                                  the applicable FHI Provider shall provide or procure the provision of the Services described on Schedule B provided under the contracts identified on such Schedule to or for the applicable BWHI Recipient;

 

(iii)                               the applicable BWHI Provider shall provide the Services described on Schedule C to the applicable FHI Recipient;

 

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(iv)                              the applicable FHI Provider shall provide the Services described on Schedule D to the applicable BWHI Recipient; and

 

(v)                                 BNPP shall provide or procure the provision of, or shall cause one or more of its Subsidiaries to provide or procure the provision of, the Services described on Schedule E provided under the contracts identified on such Schedule to or for the applicable FHI Recipient.

 

(b)                                 Each Service Provider shall, and shall cause its Subsidiaries to, use their commercially reasonable efforts to cooperate with the respective Service Recipient and its Subsidiaries in all matters necessary for, or in connection with, the provision of Services under this Agreement and the related Schedules.

 

Section 2.2                                    Omitted Services.  In the event that a Service Recipient reasonably requests that a Service Provider provide or procure the provision of any service that was provided or procured prior to the Effective Date and that is reasonably necessary for the Service Recipient 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 hereto (each, an “Omitted Service”), the applicable Service Provider may provide or procure the provision of such Omitted Service to or for such applicable Service Recipient on terms to be negotiated by the Parties in good faith, unless the Omitted Service is readily and expeditiously available to the Service Recipient from a provider other than the Service Provider, in which case the Service Recipient shall use diligent efforts to identify and enter into commercially reasonable arrangements with such a provider with respect to the provision of the Omitted Service; provided, however, that the Service Provider 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 the provision of such Omitted Service would significantly disrupt the operations of its businesses; and provided, further, that the Service Provider shall not be required to provide or procure any Omitted Service if the applicable Parties are unable to reach agreement on the terms thereof (including with respect to Service Fees therefor).  In the event that a Service Provider agrees to provide or procure the provision of an Omitted Service, the Parties will enter into a written amendment to this Agreement, amending the applicable Schedule to reflect such Omitted Service, and such Omitted Service shall be deemed to be part of this Agreement and the Services from and after the effective date of such amendment; provided that any Omitted Services must be added to this Agreement no later than ninety (90) days from the Effective Date and the Parties shall work together in good faith to complete a Project Card for such Omitted Service.  For the avoidance of doubt, BNPP’s written agreement shall not be required with respect to amendments to Schedule A, Schedule B, Schedule C and Schedule D, and neither BWHI’s nor BoW’s approval shall be required with respect to amendments to Schedule E.

 

Section 2.3                                    Replacement Services.  If any Party is (i) unable to, or unable to continue to, provide or procure the provision of any Service for which it is identified as the Service Provider on the Schedules hereto for any reason outside such Party’s control or (ii) excused from providing or procuring any Service by reason of Section 2.4(b), the Service Provider shall immediately notify the Service Recipient and shall use its, or shall cause its

 

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Subsidiaries to use their respective, commercially reasonable efforts to promptly provide to or procure for the applicable Service Recipient substantially equivalent services and support in accordance with the terms of this Agreement (such service and support, a “Replacement Service”).  In the event that a Service Provider is required to provide or procure a Replacement Service, the Parties will reasonably cooperate in good faith to revise the applicable Project Card pursuant to Section 2.9(a) and will enter into an amendment to this Agreement, amending the applicable Schedule to reflect such Replacement Service, and such Replacement Service shall be deemed to be part of this Agreement and the Services from and after the effective date of such amendment; provided, however, that the Service Fee is agreed upon in writing by the Parties.  For the avoidance of doubt, BNPP’s written agreement shall not be required with respect to amendments to Schedule A, Schedule B, Schedule C and Schedule D, and neither BWHI’s nor BoW’s approval shall be required with respect to amendments to Schedule E.

 

Section 2.4                                    Standard of Performance; Scope of Service.

 

(a)                                 Except as explicitly set forth in any Schedule hereto, each Service Provider shall provide or procure the provision of the Services it has agreed to provide or procure hereunder (i) in good faith, in a professional, timely and workmanlike manner and with reasonable care, (ii) in the same form in which such Services were provided prior to the Effective Date and (iii) up to the overall 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, in each case unless otherwise agreed to by the Parties in writing.

 

(b)                                 Notwithstanding anything to the contrary contained in this Agreement, no Service Provider shall be obligated to provide or procure the provision of, or cause any of its Subsidiaries to provide or procure the provision of, any Service to the extent the provision of such Service would violate (i) any agreement or license with a third party to which such Service Provider or any of its Subsidiaries is subject as of the Effective Date due to a change in the beneficial ownership of FHI or (ii) any Applicable Law.  Each Service Provider shall use its commercially reasonable efforts to make or obtain any approvals, agreements, permits, consents, waivers and licenses from any third parties that are necessary to permit any affiliated Service Provider to provide or procure the provision of the applicable Services under this Agreement; provided that, to the extent such Service Provider 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 in good faith to allocate such costs between the Parties in writing.

 

Section 2.5                                    Third-Party Providers.

 

(a)                                 As specified in Section 2.1(a)(i), Section 2.1(a)(ii) and Section 2.1(a)(v), the applicable Service Providers shall provide or procure the provision of the Services described on Schedule A, Schedule B and, as applicable, Schedule E, respectively, each of which, as of the Effective Date, is provided by one or more third-party service providers (each, a “Third-Party Provider”).  Notwithstanding

 

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anything in this Agreement to the contrary, each Service Provider shall use its commercially reasonable efforts to cause any Third-Party Providers performing Services to adhere to the terms and conditions of this Agreement in performing such Services.  For the avoidance of doubt, in the event of a material breach of the terms of this Agreement by any Third-Party Provider performing services that cannot be cured, the Service Provider shall use its, or shall cause its Subsidiaries to use their respective, commercially reasonable efforts to provide or procure a Replacement Service in accordance with Section 2.3.

 

(b)                                 Each Service Provider shall continue to manage its relationships with any Third-Party Provider with the same standard of care as if the Third-Party Provider were supporting such Service Provider’s own businesses.

 

Section 2.6                                    Service Provider’s Employees.

 

(a)                                 With respect to Services provided directly by a Service Provider to a Service Recipient (as opposed to Services provided directly by or through a Third-Party Provider), each Service Provider shall be responsible for selecting and supervising in good faith the Personnel who will perform any particular Service and performing all administrative support with respect to such Personnel.  Each Service Provider shall be responsible for ensuring that the Personnel it selects to perform Services hereunder have all requisite licenses and qualifications required to render 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 any Service Recipient under the control or direction of any Service Provider, or vice versa, including the management of any Personnel of any Service Provider.

 

Section 2.7                                    Availability of Information and Records; Audit.

 

(a)                                 Subject to Article VIII and to Applicable Law, each Service Recipient shall, or shall cause its Subsidiaries to, and on a timely basis, (i) make available to the applicable Service Provider all information reasonably requested by such Service Provider to enable such Service Provider to provide any of the applicable Services and (ii) provide such Service Provider with reasonable access to the Service Recipient’s premises and systems to the extent necessary for purposes of providing the applicable Services, subject to the Service Provider’s compliance with all policies and procedures, and other reasonable requirements and instructions, communicated by the Service Recipient regarding such access.

 

(b)                                 Each Party shall maintain and retain Service Records as may be required by, and in compliance with, Applicable Law and the underlying contract in respect of the Service provided.  Subject to Applicable Law, the requirements of a Third-Party Contract and the preservation of any evidentiary privilege, if applicable, for the longer of the period of time a Party is required to maintain or retain Service Records as provided by Applicable Law or the underlying contract or the period of time during which Services are provided and one year following termination of such Services, each Service Provider or Service Recipient shall, or shall cause its Subsidiaries to, do the following as promptly as practicable but in no event more than thirty (30) days following receipt of a reasonable, written request by a Service Recipient or 

 

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Service Provider, as applicable, or such shorter period as may be required by Applicable Law: (i) provide the requesting Party or its designee with access to all available Service Records relating to the provision of any Services to a Service Recipient or from a Service Provider, as applicable and (ii) respond to the requesting Party’s or its designee’s questions and requests for information regarding the provision of any Services to a Service Recipient or from a Service Provider, as applicable.  Each Party’s obligations under this paragraph will survive the termination of this Agreement, if applicable.

 

(c)                                  Following termination of this Agreement, and subject to Section 8.1 of this Agreement, each Party shall have the right to retain an archival copy of any records received under Section 2.7(b) to the extent required by Applicable Law or by reasonable record retention policies of the Service Provider or for the purpose of responding to regulatory requests or intraparty claims or fulfilling its obligations under Section 2.7(b).

 

(d)                                 To the extent (but only to the extent) required by Applicable Law or a Governmental Authority, upon reasonable advance notice, a Service Recipient shall have the right to review and audit the applicable Service Provider’s compliance with this Agreement and the systems and procedures employed by such Service Provider in providing the Services.  Any audit conducted pursuant to this Section 2.7(d) shall be conducted during normal business hours, shall employ reasonable procedures and methods as necessary and appropriate in the circumstances and shall not unreasonably interfere with the relevant Service Provider’s normal business operations.  Each Service Provider shall use its commercially reasonable efforts to facilitate any audit conducted by a Service Recipient pursuant to this Section 2.7(d); provided that nothing shall require the applicable Service Provider or its Subsidiaries to provide any information or records to the extent (i) such provision would be prohibited by contract or Applicable Law or (ii) such information or records are legally privileged.  In coordination with the Service Recipient, each applicable Service Provider shall use its commercially reasonable efforts to remedy in a commercially reasonable timeframe any material deficiencies determined by any audit conducted pursuant to this Section 2.7(d).  The Service Provider shall certify in writing to the Service Recipient the corrective action(s) taken and provide such additional information reasonably requested by the Service Recipient regarding such deficiencies and remedies therefor.  Each Party shall bear its own costs with respect to any audits conducted pursuant to this Section 2.7(d).  Each Party’s obligations under this Section 2.7(d) will survive the termination of this Agreement; provided that, for the avoidance of doubt, the review and audit rights provided pursuant to this Section 2.7(d) are only available to the extent (and only to the extent) required by Applicable Law or a Governmental Authority.

 

Section 2.8                                    Disclaimer of Warranties.  Except as otherwise expressly set forth in this Agreement, (a) each Service Provider 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 their respective Services, (b) each Service Provider makes no representations or warranties as to the quality, suitability or adequacy of the Services provided by the Service Provider or its Subsidiaries 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.

 

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Section 2.9                                    Transition Support.

 

(a)                                 The Parties acknowledge that they have been working together to mutually agree upon a written project plan for each of the Services identified on the Schedules hereto (each project plan, a “Project Card”).  Each Project Card is intended to address (i) the actions the applicable Service Provider and Service Recipient shall take to operate independently of one another or otherwise replace or migrate away from the Service, (ii) any inter-dependence between the actions contained in any of the various Project Cards, (iii) timelines for conclusion of the actions and separation activities described on the Project Card and (iv) any additional reasonable assistance any Party requires from the other in connection with completion of separation activities described on the Project Card.  The Project Cards are not incorporated into or made part of this Agreement.  The Parties agree to reasonably cooperate in good faith to revise the Project Cards as necessary based on changes in circumstances during the term of this Agreement.  In the event that the Parties revise a Project Card in a manner that results in such Project Card contradicting the relevant Schedule hereto, the Parties will act in good faith consistent with the terms of this Agreement to consider whether an amendment to this Agreement is necessary or desirable.  In the event an amendment is executed, it shall be deemed to be part of this Agreement and the Services from and after the effective date of such amendment.  For the avoidance of doubt, BNPP’s written agreement shall not be required with respect to amendments to Schedule A, Schedule B, Schedule C and Schedule E, and neither BWHI’s nor BoW’s approval shall be required with respect to amendments to Schedule E.

 

(b)                                 Each Service Provider shall reasonably cooperate in good faith to facilitate each Service Recipient’s ability to operate independently of or otherwise replace or migrate away from each Service.  Each Service Provider shall use commercially reasonable efforts to minimize (i) any disruption in connection with the receipt of Services, (ii) any quality degradation in connection with the Services and (iii) any cost to the applicable Service Recipient’s independent operation or replacement or migration away from each Service.  No Service Provider shall be obligated to incur any out-of-pocket cost or expense in connection with any of the actions taken pursuant to this Section 2.9(b) unless otherwise agreed to by the Parties in writing.

 

Section 2.10                             Exclusivity.  This Agreement is not exclusive.  Each Service Recipient shall be entitled to purchase the same or similar Services from any third party or may elect to internally provide any of the Services.  In the event a Service Recipient elects to purchase the same or similar Services from a third party or elects to internally provide the Services, such Service Recipient shall notify the applicable Service Provider and terminate such Service pursuant to Section 4.2(b).

 

ARTICLE III
 FEES AND PAYMENTS

 

Section 3.1                                    Fees for Services.  In consideration for rendering the applicable Services pursuant to this Agreement and related Schedules, each Service Provider shall be entitled to receive a Service Fee as set forth on the applicable Schedule hereto.  In the event that 

 

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the applicable Service Provider or Service Recipient in good faith determines that the Service Fee for a Service needs to be revised in light of the costs, including customary overhead allocation, actually incurred in providing the Service and any changes anticipated as a result of changes in the scope of services or applicable requirements which the Service is intended to address, the Service Provider and Service Recipient will discuss in good faith whether an adjustment to such Service Fee is appropriate under the circumstances; provided, however, that no Party shall be obligated to agree to revisions to the Service Fee.  In the event that the relevant Parties agree to an adjustment to the Service Fee, such Parties will enter into an amendment to this Agreement, amending the applicable Schedule to reflect such adjusted Service Fee, and such adjusted Service Fee shall be deemed to be part of this Agreement and the Services from and after the effective date of such amendment.  For the avoidance of doubt, BNPP’s written agreement shall not be required with respect to amendments to Schedule A, Schedule B, Schedule C and Schedule D, and neither BWHI’s nor BoW’s approval shall be required with respect to amendments to Schedule E.

 

Section 3.2                                    Billing Statements.  Subject to Section 3.3, within ten (10) days following the end of each Service Period, the Service Provider shall provide to the Service Recipient an invoice (the “Billing Statement”) setting forth the Service Fees payable by the Service Recipient to the Service Provider relating to expenses incurred in the immediately preceding Service Period.  The Service Recipient shall remit the amount set forth on the Billing Statement within thirty (30) days of receipt thereof unless another time period is specified in the applicable Schedule hereto; provided that the Service Recipient shall not be required to pay the portion of any Billing Statement that is in dispute pursuant to Section 3.4 of this Agreement.  For the avoidance of doubt, the Service Recipient shall be required to pay any undisputed portion of any Billing Statement within thirty (30) days of receipt of the Billing Statement.  In the event of a quarterly, annual or longer Service Period, the Service Provider shall provide the Service Recipient with interim invoices setting forth to-date Service Fees as and to the extent agreed between such Parties.

 

Section 3.3                                    Direct Payments to Third-Party Providers.  Where the Schedules hereto require the Service Recipient to pay a Service Fee directly to a Third-Party Provider, such Service Recipient shall be solely responsible for making such payment and the Service Provider shall not include such Service Fee on a Billing Statement unless the Service Fee was mistakenly billed to, and paid by, the Service Provider, in which case the Service Fee will be included on a Billing Statement pursuant to Section 3.2.

 

Section 3.4                                    Disputes Over Billing Statements or Direct Payments.

 

(a)                                 The Service Recipient may contest any portion of a Billing Statement in good faith by giving written notice to the Service Provider of such Dispute on or prior to the applicable payment due date.  As soon as reasonably practicable after receipt of any request from the Service Recipient, the Service Provider shall provide the Service Recipient with data and documentation supporting the calculations for any amounts included in the Billing Statement contested by the Service Recipient for purposes of verifying the accuracy of such calculation and such further documentation and information relating to the calculations of such Billing Statement as the Service Recipient may reasonably request.  If the Service Provider and Service Recipient 

 

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cannot resolve a Dispute over a Billing Statement, such Dispute shall be resolved pursuant to Article V and Section 9.1 of this Agreement.  In the event such Dispute is resolved, the Service Recipient shall pay any outstanding and required amounts to the Service Provider within ten (10) days after the date such resolution occurs.

 

(b)                                 Where the Schedules hereto require the Service Recipient to pay a Service Fee directly to a Third-Party Provider, to the extent permitted under the Third-Party Contract, such Service Recipient shall resolve any dispute over a payment directly with the Third-Party Provider.  The Service Provider shall reasonably cooperate in good faith to assist the Service Recipient in resolving any such dispute.

 

Section 3.5                                    Taxes.

 

(a)                                 Notwithstanding anything in this Agreement to the contrary and subject to Section 3.5(e), the Parties’ respective responsibilities for Taxes arising under or in connection with this Agreement shall be as set forth in this Section 3.5.

 

(b)                                 Each Party shall be responsible for:

 

(i)                                     any personal property Taxes on property it uses, regardless of whether such property is owned or leased;

 

(ii)                                  franchise and privilege Taxes on its business;

 

(iii)                               Taxes based on its net income or gross receipts; and

 

(iv)                              Taxes based on the employment or wages of its employees, including FICA, Medicare, unemployment, worker’s compensation and other similar Taxes.

 

(c)                                  Each Service Provider shall be responsible for any sales, use, excise, value-added, services, consumption and other Taxes payable by such Service Provider on the goods or services used or consumed by such Service Provider in providing the Services.

 

(d)                                 Each Service Recipient shall be responsible for any sales, use, excise, value-added, services, consumption and other Taxes that are assessed on the provision of the particular Service to such Service Recipient, to the extent the Service Provider is not responsible for such Taxes pursuant to Section 3.5(c).

 

(e)                                  Notwithstanding anything in this Section 3.5 to the contrary, each Service Recipient shall be responsible for the Hawaii General Excise Tax that is assessed on the Service Provider for the provision of the particular Service to such Service Recipient; provided, however, if the Service Recipient has paid the Hawaii Use Tax relating to the provision of such Service, the Service Recipient is not required to make any payment in respect of such Hawaii General Excise Tax.

 

(f)                                   Each Service Recipient will make all payments to the Service Provider under this Agreement without deduction or withholding for Taxes except to the extent that any such deduction or withholding is required by Applicable Law in effect at the time of payment.  

 

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Any Tax required to be withheld on amounts payable under this Agreement will promptly be paid by the Service Recipient to the appropriate Governmental Authority, and the Service Recipient will furnish the Service Provider with proof of payment of such Tax.  If a Service Recipient is required under Applicable Law to withhold any Tax from any payment made pursuant to this Agreement, the amount of the payment will be increased such that the Service Provider receives the full amount due hereunder as if there was no withholding Tax, except to the extent that the amount so withheld is attributable to the Service Provider’s failure to comply with the Service Recipient’s request to deliver properly completed and executed documentation establishing exemption from or reduction of withholding Taxes with respect to payments made under this Agreement.

 

ARTICLE IV
 TERM AND TERMINATION

 

Section 4.1                                    Term.  Each Service will be provided for the duration of the applicable Transition Period and will lapse automatically thereafter or at the time such Service is terminated prior to the expiration of the Transition Period in accordance with Section 4.2(b).  This Agreement shall terminate on December 31, 2018.

 

Section 4.2                                    Termination.

 

(a)                                 This Agreement may be terminated prior to the end of the term set forth in Section 4.1:

 

(i)                                     By BWHI or FHI immediately upon the material breach of this Agreement by the other or a Subsidiary of the other if such material breach is not cured within thirty (30) days after written notice thereof to the Party that is in material breach (or whose Subsidiary is in material breach); provided that any termination of this Agreement pursuant to this subsection (i) shall be effective only to terminate the portions of this Agreement that relate to the Services listed on Schedule A, Schedule B, Schedule C and Schedule D;

 

(ii)                                  By BNPP or FHI immediately upon the material breach of this Agreement by the other or, in the case of FHI, by a Subsidiary of FHI, if such material breach is not cured within thirty (30) days after written notice thereof to the Party that is in material breach (or whose Subsidiary is in material breach); provided that any termination of this Agreement pursuant to this subsection (ii) shall be effective only to terminate the portions of this Agreement that relate to the Services listed on Schedule E;

 

(iii)                               By any Party if required by Applicable Law or Governmental Authority having jurisdiction over such Party; or

 

(iv)                              Upon the mutual written agreement of the Parties.

 

(b)                                 Subject to Section 4.2(c), any particular Service (including any Omitted Service or Replacement Service) provided pursuant to this Agreement may be terminated prior to the end of the applicable Transition Period by the Service Recipient, as long as the Service Recipient provides the Service Provider written notice of such termination at least thirty (30) 

 

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days prior to any such termination; provided that the Parties shall work in good faith to allocate, in writing, any and all fees and expenses reasonably incurred by the Service Provider as a result of such termination, including expenses or increased fees that result from the Service Provider becoming responsible for payment of the portion of any Service Fee that was previously allocated to or paid by the Service Recipient, in an equitable manner; provided, further, that the applicable Service Provider shall use commercially reasonable efforts to minimize any and all such fees and expenses.

 

(c)                                  If the Service Recipient elects to terminate any particular Service pursuant to Section 4.2(b), and the Service Provider reasonably determines and provides the Service Recipient with written notice prior to the termination of such Service that such termination will adversely affect the ability of any Service Provider 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, including any adjustments to the Service Fee, such amendment shall be deemed to be part of this Agreement and the Services from and after the effective date of such amendment.  For the avoidance of doubt, BNPP’s written agreement shall not be required with respect to amendments to Schedule A, Schedule B, Schedule C and Schedule D, and neither BWHI’s nor BoW’s approval shall be required with respect to amendments to Schedule E.  The applicable Service Provider and Service Recipient agree to each use their commercially reasonable efforts to minimize the impact of the termination of any Service on the remainder of this Agreement.

 

Section 4.3                                    Extension of Transition Period.  In connection with the termination of any Service, if the Service Recipient reasonably determines that it will require such Service to continue beyond the applicable Transition Period, the Service Recipient may request that the Service Provider extend such Service (any such extension, a “Service Extension”) for a specified period beyond the scheduled termination of such Service (which period shall in no event be longer than one hundred and eighty (180) days) by written notice to the Service Provider no less than thirty (30) days prior to the date of such scheduled termination, and the Service Provider shall consider any such request in good faith; provided, however, that no Party shall be obligated to agree to any Service Extension, including because, after good-faith negotiations between the applicable Service Provider and Service Recipient, the applicable Service Provider and Service Recipient fail to reach an agreement with respect to the terms thereof; provided, further, that (i) there shall be no more than one (1) Service Extension with respect to each Service unless otherwise mutually agreed to in writing by the Parties and (ii) the Service Provider shall not be obligated to provide such Service Extension if a third-party consent is required and cannot be obtained by the Service Provider using commercially reasonable efforts.  In no event shall a Service be extended pursuant to this Section 4.3 if the Transition Period for such Service ends on the 51% Date unless otherwise agreed to by the Parties in writing and such agreement by the Parties is not in violation of the terms and conditions of the underlying contract governing the provision of the Service.  In the event that a Service Provider agrees to provide a Service Extension, the Parties will reasonably cooperate in good faith to revise the applicable Project Card pursuant to Section 2.9(a) and will enter into an amendment to this Agreement, amending the applicable Schedule to reflect such Service Extension, including any adjustments to the 

 

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Service Fee 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.  For the avoidance of doubt, BNPP’s written agreement shall not be required with respect to amendments to Schedule A, Schedule B, Schedule C and Schedule D, and neither BWHI’s nor BoW’s approval shall be required with respect to amendments to Schedule E.

 

Section 4.4                                    Effect of Termination.

 

(a)                                 In the event of the termination of this Agreement as provided in this Article IV, this Agreement shall forthwith become void and have no further effect, except that Section 2.7(b), Section 2.7(d), this Section 4.4, Section 7.1 and Section 7.3 and Article VI, Article VIII, Article IX and Article X shall survive the termination of this Agreement.  Upon the termination of this Agreement, each Service Provider shall have no further obligation to provide, or cause to be provided, any of the Services, and each Service Recipient shall promptly pay all costs, expenses and fees in respect of Services provided prior to the termination of this Agreement (which costs shall be pro-rated where necessary).  The 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 termination or which under the terms of this Agreement continue after termination.

 

(b)                                 Upon the termination or expiration of any Service pursuant to this Agreement, the Service Provider shall have no further obligation to provide, or cause to be provided, such Service, and the Service Recipient 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 which under the terms of this Agreement continue after termination.

 

ARTICLE V
 GOVERNANCE

 

Section 5.1                                    Transition Working Groups.

 

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

 

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

 

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

 

(iii)                               overseeing the Parties’ progress in transferring from the Service, including, but not limited to, ensuring that the applicable Service Provider and Service Recipient are taking the actions described on the Project Card and achieving key milestones in order to operate independently of one another or otherwise 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 no less than twice per month during the Transition Period of the Service to discuss any matters relating to the Services for which it is responsible.

 

(d)                                 Each of BWHI and FHI 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.

 

(e)                                  For each of the Services listed on Schedule E hereto, BNPP shall designate a representative with specific knowledge of and familiarity with the requirements of the Service to serve as a contact to the applicable Transition Working Group and such Person shall be reasonably available to discuss any matters relating to the Service.

 

Section 5.2                                    Separation Committees.

 

(a)                                 BoW and FHB will establish a separation committee (“Separation Committee”), which shall comprise (i) one (1) transition head from BoW who shall have authority to act on BoW’s behalf with respect to this Agreement and (ii) one (1) transition head from FHB, who shall have authority to act on FHB’s behalf with respect to this Agreement.

 

(b)                                 To the extent the 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 notify the Separation Committee in writing (including by email), and the Separation Committee will meet, in person or through teleconference, to take up such decision or Dispute; provided that the Separation Committee shall, as promptly as practicable but in no event later than ten (10) Business Days after receiving notice from the Transition Working Group, convene a meeting after receiving written notice (including by email) from a Transition Working Group that a decision or resolution of a Dispute is needed with respect to a Service.  The Separation Committee shall use its commercially reasonable efforts to make such required decision or resolve such Dispute.  To the extent the Separation Committee deems it appropriate, the Separation Committee may consult with and consider input from the applicable Transition Working Group in coming to any decision or resolving any Dispute with respect to a Service.

 

(c)                                  Each of BoW and FHB shall have the right at any time to replace its transition head on the Separation Committee by advising the other Party in writing (including by email) of such replacement.

 

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Section 5.3                                    Steering Committee.

 

(a)                                 BoW, FHB and BNPP will establish a steering committee (“Steering Committee”), which shall comprise (i) one (1) member of executive management with decision-making authority from BoW, (ii) one (1) member of executive management with decision-making authority from FHB and (iii) one (1) member of executive management with decision-making authority from BNPP.

 

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

 

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

 

ARTICLE VI
 INDEMNIFICATION

 

Section 6.1                                    Indemnification for Losses Related to Third-Party Contracts.

 

(a)                                 To the fullest extent permitted by Applicable Law, BWHI shall indemnify, defend and hold harmless FHI and its Subsidiaries and each of the respective former and current directors, officers and employees of the FHI Group, and each of the heirs, executors, successors and assigns of any of the foregoing, from and against any and all Losses relating to, arising out of or resulting from, directly or indirectly, any Third-Party Contract, except that this indemnity obligation shall not apply to the extent (but only to the extent):

 

(i)            that the Losses arise out of or result from the negligence, recklessness, violation of law, fraud or misrepresentation by or of (x) FHB or any of its Subsidiaries or (y) FHI to the extent (but only to the extent) any such act occurred after the Reorganization Effective Date; or

 

(ii)           the Losses result from the breach of the terms and provisions of such Third-Party Contract by (x) FHB or any of its Subsidiaries or (y) FHI to the extent (but only to the extent) such breach occurred after the Reorganization Effective Date.

 

(b)           To the fullest extent permitted by Applicable Law, FHI shall indemnify, defend and hold harmless BWHI and its Subsidiaries and each of the respective former and 

 

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current directors, officers and employees of the BWHI Group, and each of the heirs, executors, successors and assigns of any of the foregoing, from and against any and all Losses relating to, arising out of or resulting from, directly or indirectly, any Third-Party Contract, to the extent (but only to the extent) that:

 

(i)                                     the Losses arise out of or result from the negligence, recklessness, violation of law, fraud or misrepresentation by (x) FHB or any of its Subsidiaries or (y) FHI to the extent (but only to the extent) any such act occurred after the Reorganization Effective Date; or

 

(ii)                                  the Losses result from the breach of the terms and provision of such Third-Party Contract by (x) FHB or any of its Subsidiaries or (y) FHI to the extent (but only to the extent) such breach occurred after the Reorganization Effective Date.

 

(c)                                  For purposes of this Section 6.1, Losses shall not include Losses resulting from a breach of any Third-Party Contract by the applicable Third-Party Provider.

 

Section 6.2                                    Indemnification for Losses Arising Out of This Agreement.

 

(a)                                 To the fullest extent permitted by Applicable Law, BWHI shall indemnify, defend and hold harmless FHI and its Subsidiaries (including FHB) and each of the respective former and current directors, officers and employees of the FHI Group, and each of the heirs, executors, successors and assigns of any of the foregoing, from and against any and all Losses relating to, arising out of or resulting from BWHI’s or any of its Subsidiaries’ breach of its obligations under this Agreement; provided that, if any such breach by BWHI or its Subsidiaries is the direct result of a breach of a Third-Party Contract by a Third-Party Provider performing Services, indemnification shall be required under this Section 6.2(a) to the extent (but only to the extent) Losses relate to, arise out of or result from BWHI’s or any of its Subsidiaries’ negligence, recklessness, violation of law, fraud or misrepresentation.

 

(b)                                 To the fullest extent permitted by Applicable Law, FHI shall indemnify, defend and hold harmless BWHI and its Subsidiaries and each of the respective former and current directors, officers and employees of the BWHI Group, and each of the heirs, executors, successors and assigns of any of the foregoing, from and against any and all Losses relating to, arising out of or resulting from FHI’s or any of its Subsidiaries’ breach of its obligations under this Agreement; provided that, if any such breach by FHI or its Subsidiaries is the direct result of a breach of a Third-Party Contract by a Third-Party Provider performing Services, indemnification shall be required under this Section 6.2(b) to the extent (but only to the extent) Losses relate to, arise out of or result from FHI’s or any of its Subsidiaries’ negligence, recklessness, violation of law, fraud or misrepresentation.

 

(c)                                  In the event of a breach of a Third-Party Contract by a Third-Party Provider performing Services, and any resulting Losses to FHI, BWHI or their respective Subsidiaries are not the subject of indemnification pursuant to Section 6.2(a) and Section 6.2(b), the Parties agree to cooperate with each other Party in a reasonable manner to seek appropriate remedies from the relevant Third-Party Provider.  Such cooperation shall include cooperation with respect to pursuing an Action against, negotiating a settlement or compromise with or 

 

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otherwise prosecuting any right or claim against the Third-Party Provider, as well as sharing the cost and expense of any of the previously listed actions in an equitable manner.

 

Section 6.3                                    Procedure for Indemnification of Third-Party Claims.

 

(a)                                 Notice of Claim.  If, at or following the date of this Agreement, any Person entitled to indemnification hereunder an (“Indemnitee”) shall receive notice or otherwise learn of a Third-Party Claim with respect to which another Party (an “Indemnifying Party”) may be obligated to provide indemnification to such Indemnitee pursuant to Section 6.1 or Section 6.2, such Indemnitee shall give such Indemnifying Party written notice thereof as soon as practicable but in any event within twenty (20) days (or sooner if the nature of the Third-Party Claim so requires) of becoming aware of such Third-Party Claim.  Any such notice shall describe the Third-Party Claim in reasonable detail, including the facts and circumstances giving rise to such claim for indemnification, and include copies of all notices and documents (including court papers) received by the Indemnitee relating to the Third-Party Claim.  Notwithstanding the foregoing, the failure of any Indemnitee or other Person to give notice as provided in this Section 6.3(a) shall not relieve the related Indemnifying Party of its obligations under this Article VI, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice and then only to the extent of such prejudice.

 

(b)                                 Control of Defense.  An Indemnifying Party may elect to defend, at such Indemnifying Party’s own expense and by such Indemnifying Party’s own counsel, any Third- Party Claim.  Within twenty (20) days after the receipt of notice from an Indemnitee in accordance with Section 6.3(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election as to whether the Indemnifying Party will assume responsibility for defending such Third-Party Claim.  After notice from an Indemnifying Party to an Indemnitee of its election to assume the defense of a Third-Party Claim, such Indemnitee shall have the right to employ separate counsel and to monitor and participate in (but not control) the defense, compromise or settlement thereof, but the fees and expenses of such counsel shall be the expense of such Indemnitee, except that the Indemnifying Party shall be liable for the reasonable fees and expenses of counsel employed by the Indemnitee (i) for any period during which the Indemnifying Party has not assumed the defense of such Third-Party Claim (other than during any period in which the Indemnitee shall have failed to give notice of the Third-Party Claim in accordance with Section 6.3(a) and (ii) if a conflict exists between the positions of the Indemnifying Party and the Indemnitee, as reasonably determined in good faith by the Indemnitee, and the Indemnitee believes it is in the Indemnitee’s best interest to obtain independent counsel.  The Party controlling the defense of any Third-Party Claim shall keep the non-controlling Party advised of the status thereof and shall consider in good faith any recommendations made by the non-controlling Party with respect thereto.

 

(c)                                  If an Indemnifying Party elects not to assume responsibility for defending a Third-Party Claim, or fails to notify an Indemnitee of its election as provided in Section 6.3(b), such Indemnitee may defend such Third-Party Claim at the cost and expense of the Indemnifying Party.

 

(d)                                 If an Indemnifying Party elects to assume the defense of a Third-Party Claim in accordance with the terms of this Agreement, the Indemnitee shall agree to any 

 

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settlement, compromise or discharge of such Third-Party Claim that the Indemnifying Party may recommend and that by its terms obligates the Indemnifying Party to pay the full amount of the liability in connection with such Third-Party Claim and that releases the Indemnitee completely in connection with such Third-Party Claim; provided that Indemnitee shall not be required to admit any fault.

 

(e)                                  No Indemnifying Party shall consent to an entry of any judgment or enter into any settlement of any Third-Party Claim without the consent of the applicable Indemnitee or Indemnitees if the effect thereof is to permit any injunction, declaratory judgment, other order or other nonmonetary relief to be entered, directly or indirectly, against any Indemnitee.

 

(f)                                   Whether or not the Indemnifying Party assumes the defense of a Third-Party Claim, no Indemnitee shall admit any liability with respect to, or settle, compromise or discharge, such Third-Party Claim without the Indemnifying Party’s prior written consent which shall not be unreasonably withheld.

 

Section 6.4                                    Additional Matters.

 

(a)                                 Notice of Direct Claims.  Any claim on account of a Loss that does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the related Indemnifying Party as soon as practicable but in any event within twenty (20) days after becoming aware of such claim; provided that the failure of any Indemnitee to give notice as provided in this Section 6.4(a) shall not prejudice the ability of the Indemnitee to do so at a later time except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice and then only to the extent of such prejudice.  Such Indemnifying Party shall have a period of thirty (30) days after the receipt of such notice within which to respond thereto.  If such Indemnifying Party does not respond within such 30-day period, such Indemnifying Party shall be deemed to have refused to accept responsibility to make payment.  If such Indemnifying Party does not respond within such 30-day period or rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such Party as contemplated by this Agreement.

 

(b)                                 Subrogation.  In the event of payment by or on behalf of any Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right, defense or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim or against any other Person.  Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right, defense or claim.

 

(c)                                  Substitution.  In the event of an Action in which the Indemnifying Party is not a named defendant, if either the Indemnitee or Indemnifying Party shall so request, the Parties shall endeavor to substitute the Indemnifying Party for the named defendant, or add the Indemnifying Party as an additional named defendant.  If such substitution or addition cannot be achieved for any reason or is not requested, the named defendant shall allow the Indemnifying Party to manage the Action as set forth in Section 6.3 and this Section 6.4, and the Indemnifying 

 

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Party shall fully indemnify the named defendant against all costs of defending the Action (including court costs, sanctions imposed by a court, attorneys’ fees, experts’ fees and all other external expenses), the costs of any judgment or settlement and the cost of any interest or penalties relating to any judgment or settlement other than costs arising as a result of the negligence of the defendant.

 

(d)                                 Good Faith.  Subject to the other provisions of this Article VI, each Indemnitee shall act in good faith, and will make the same decisions in the use of personnel and the incurring of expenses as it would make if it were engaged and acting entirely at its own cost and for its own account regarding the conduct of any proceedings or the taking of any action for which indemnification may be sought.

 

(e)                                  Duty to Mitigate.  Each Indemnitee shall use its commercially reasonable efforts to mitigate any Loss that is subject to indemnification pursuant to the provisions of Section 6.1 or Section 6.2.  In the event an Indemnitee fails to so mitigate a Loss, the Indemnifying Party shall have no liability for any portion of such Loss that reasonably could have been avoided had the Indemnitee made such efforts.

 

Section 6.5                                    Payments.  The Indemnifying Party shall pay all amounts payable pursuant to this Article VI, by wire transfer of immediately available funds, promptly following receipt from an Indemnitee of a bill, together with all accompanying reasonably detailed back-up documentation, for a Loss that is the subject of indemnification under this Agreement, unless the Indemnifying Party in good faith disputes the Loss, in which event it shall so notify the Indemnitee. In any event, the Indemnifying Party shall pay to the Indemnitee, by wire transfer of immediately available funds, the amount of any Loss for which the Indemnifying Party is liable under this Agreement no later than three (3) Business Days or any longer period of time mutually agreed to by the relevant Parties in writing following any Final Determination of any dispute with respect to such Loss finding the Indemnifying Party’s liability therefor.  All payments made pursuant to this Article VI shall be made in U.S. dollars.

 

ARTICLE VII
 INTELLECTUAL PROPERTY

 

Section 7.1                                    Ownership of Intellectual Property.  Ownership of any Intellectual Property developed or generated after the Reorganization Effective Date by or on behalf of any Party in connection with any Service shall vest in the developing or generating Party other than (a) Intellectual Property constituting an improvement or derivative work of a Party’s pre-existing or independently developed Intellectual Property, which shall be owned by such Party, (b) Intellectual Property constituting an improvement or derivative work of third-party Intellectual Property licensed to a Party, which shall be owned as specified in the applicable contract between such Party and such third party, (c) any Intellectual Property owned by a third party pursuant to an underlying contract with respect to a Service, which shall be owned as specified in the applicable contract between the relevant Party and such third party and (d) Intellectual Property developed as a Service, where such development and Intellectual Property to be developed is expressly described as part of such Service, which shall be owned by the applicable Service Recipient.  Each of BWHI, BoW, FHI and FHB agrees to assign, and hereby assigns, all of its right, title and interest in any such Intellectual Property developed or generated after the 

 

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Reorganization Effective Date by or on behalf of BWHI, BoW, or BNPP and FHI or FHB, as applicable, in accordance with the terms of this Section 7.1.

 

Section 7.2                                    Licensing of Intellectual Property.

 

(a)                                 To the extent that, in connection with its provision of any Service, any Service Provider provides any Service Recipient with access to any Technology the receipt of which would, in the absence of a license from the Service Provider, infringe or misappropriate any Intellectual Property (excluding Trademarks) owned and licensable by the Service Provider (collectively, “Service Provider IP”), then the Service Provider hereby grants to the applicable Service Recipient, during the term of this Agreement, a non-exclusive, revocable, personal, non-transferable, royalty-free, fully paid-up license, without the right to sublicense, under such Service Provider IP, solely to the extent necessary for the applicable Service Recipient to receive such Services in accordance with this Agreement.

 

(b)                                 To the extent that, in connection with the provision of any Service, any Service Recipient provides any Service Provider with access to any Technology the receipt of which would, in the absence of a license from the Service Recipient, infringe or misappropriate any Intellectual Property (excluding Trademarks) owned and licensable by the Service Recipient (collectively, “Service Recipient IP”), then the Service Recipient hereby grants to the applicable Service Provider, during the term of this Agreement, a non-exclusive, revocable, personal, non-transferable, royalty-free, fully paid-up license, without the right to sublicense, under such Service Recipient IP, solely to the extent necessary for the applicable Service Provider to provide such Services in accordance with this Agreement.

 

(c)                                  To the extent that, in connection with its provision of any Service, any Service Provider provides any Service Recipient with access to any Technology the Intellectual Property rights in which are not owned by such Service Provider but which are licensed by a third party to such Service Provider with a right of such Service Provider to grant a sublicense as set forth herein (“Third-Party Provider IP”), such Service Provider hereby grants to such Service Recipient, during the term of this Agreement, a non-exclusive, revocable, personal, non-transferable, royalty-free, fully paid-up sublicense, without the right to further sublicense, under such Third-Party Provider IP, to use such Technology, solely to the extent such grant would not breach or otherwise violate any agreement between such Service Provider with any third party and solely to the extent necessary for such Service Recipient to receive such Services in accordance with this Agreement; provided that such Service Recipient’s access to, use of and rights for such Third-Party Provider IP shall be subject in all regards to any restrictions, limitations or other terms or conditions imposed by the licensor of such Third-Party Provider IP, which terms and conditions will be provided to the applicable Service Recipient by the applicable Service Provider to the extent permitted by such terms and conditions.

 

(d)                                 To the extent that, in connection with its provision of any Service, any Service Recipient provides any Service Provider with access to any Technology the Intellectual Property rights in which are not owned by such Service Recipient but which are licensed by a third party to such Service Recipient with a right of such Service Recipient to grant a sublicense as set forth herein (“Third-Party Recipient IP”), such Service Recipient hereby grants to such Service Provider, during the term of this Agreement, a non-exclusive, revocable, personal, non-

 

25

 

transferable, royalty-free, fully paid-up sublicense, without the right to further sublicense, under such Third-Party Recipient IP, to use such Technology, solely to the extent such grant would not breach or otherwise violate any agreement between such Service Recipient with any third party and solely to the extent necessary for such Service Provider to provide such Services in accordance with this Agreement; provided that such Service Provider’s access to, use of and rights for such Third-Party Recipient IP shall be subject in all regards to any restrictions, limitations or other terms or conditions imposed by the licensor of such Third-Party Recipient IP, which terms and conditions will be provided to the applicable Service Provider by the applicable Service Recipient to the extent permitted by such terms and conditions.

 

(e)                                  Upon the termination or expiration of any Service pursuant to this Agreement, the license or sublicense, as applicable, to the relevant Intellectual Property granted hereunder in connection with such Service will automatically terminate (except to the extent such license or sublicense also applies to one or more Services that has not terminated or expired); provided, however, that all licenses and sublicenses granted hereunder shall terminate immediately upon the expiration or earlier termination of this Agreement for any reason.

 

Section 7.3                                    Ownership of Data.  Any and all data, documents and other records originally provided by any Party or any of such Party’s Subsidiaries (collectively, the “Providing Party”) to another Party or any of its Subsidiaries (collectively, the “Obtaining Party”) in connection with the provision of the Services shall be and remain the exclusive property of such Providing Party.  The Providing Party may at any time request that the Obtaining Party (a) deliver such data, documents and records in the format provided by the Providing Party, together with information codes and tools necessary to reasonably process such data and records; and (b) delete and otherwise destroy such Providing Party data, documents and other records permanently, except to the extent the Obtaining Party is required by Applicable Law or its internal document retention policies to retain a copy for its records or to the extent any such data, documents and other records are included in internal board, board committee or senior executive meeting papers; provided, however, that in the case of data, documents or other records provided by a Service Recipient to a Service Provider, upon such deletion or destruction, the Service Provider shall not be obligated to continue to provide any Service to the extent the use of the data, documents and/or other records the Service Recipient requested to be deleted or destroyed is necessary to provide such Service.  Notwithstanding anything to the contrary in this paragraph, the Obtaining Party may retain copies of any and all data, documents and/or other records to the extent that it forms part of the Obtaining Party’s permanent archival back-up tapes; provided, however, that any such data, documents and/or other records retained pursuant to this sentence shall be subject to confidentiality obligations set forth in Article VIII of this Agreement.

 

ARTICLE VIII
 CONFIDENTIALITY; SYSTEMS SECURITY

 

Section 8.1                                    Confidentiality.

 

(a)                                 Subject to Section 8.1(c), from and after the Effective Date, each Party that receives or obtains Confidential Information, or whose Subsidiaries receive or obtain Confidential Information (collectively, the “Receiving Party”), from another Party or any of its Subsidiaries (collectively, the “Disclosing Party”) as a result of the transactions and Services 

 

26

 

contemplated by this Agreement shall treat such Confidential Information as confidential, shall use such Confidential Information only for the purposes of performing or giving effect to this Agreement and shall not disclose or use any such Confidential Information except as provided herein.

 

(b)                                 Each Service Provider shall have the right to disclose Confidential Information to any Third-Party Provider to the extent reasonably required for such Service Provider to provide or procure the Services in the manner required by this Agreement; provided that such disclosure shall be made under confidentiality terms and conditions that are no less stringent than the provisions of this Section 8.1.

 

(c)                                  Section 8.1(a) shall not prohibit the disclosure or use of any Confidential Information if and to the extent:

 

(i)                                     the disclosure or use is required by Applicable Law or for the purpose of any judicial or administrative proceedings (provided that, to the extent practicable and permitted by Applicable Law, prior to such disclosure or use, the Receiving Party shall (a) promptly notify the Disclosing Party of such requirement and provide the Disclosing Party with a list of Confidential Information to be disclosed (unless the provision of such notice is not permissible under Applicable Law) and (b) reasonably cooperate in obtaining a protective order covering, or confidential treatment for, such Confidential Information);

 

(ii)                                  the disclosure to any Governmental Authority having jurisdiction over the Receiving Party in connection with supervisory discussions with, and examinations by, such Governmental Authority;

 

(iii)                               the Confidential Information is or becomes generally available to the public (other than as a result of an unauthorized disclosure, whether direct or indirect, by the Receiving Party); provided that there is written evidence of the public availability of such Confidential Information;

 

(iv)                              the Confidential Information is or becomes available to the Receiving Party on a non-confidential basis from a source other than the Disclosing Party (provided that, such sources are not known by the Receiving Party to be subject to another confidentiality obligation; and provided, further, that there is evidence in the Receiving Party’s written records of the source of such Confidential Information); or

 

(v)                                 the disclosure or use of such Confidential Information is made with the Disclosing Party’s prior written approval.

 

(d)                                 Each Party’s Confidential Information shall remain the property of that Party.  Each Party shall use at least the same degree of care, but in any event no less than a reasonable degree of care, to prevent disclosing to third parties the Confidential Information of any other Party as it employs to avoid unauthorized disclosure, publication or dissemination of its own information of a similar nature.

 

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(e)                                  Upon the termination of this Agreement, the Receiving Party agrees to return all such Confidential Information in its possession, custody and control.  In lieu of returning such information, the Receiving Party may, at its election, provide the Disclosing Party with a written certification that any and all Confidential Information disclosed under this Agreement has been destroyed or otherwise rendered inaccessible, unreadable or unavailable.

 

Section 8.2                                    Systems Security and Breach Notification.

 

(a)                                 If any Party or any of its respective Subsidiaries (such Party together with its Subsidiaries, the “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 another Party or any of such other Party’s Subsidiaries (such other Party and its Subsidiaries, the “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 they exist at the time the Accessing Party is accessing the Systems, 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.

 

(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 causing the unauthorized destruction, alteration or loss of information contained therein.  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 to rectify any such failure to comply with the Granting Party’s security regulations.  If any breach of the Granting Party’s security regulations is not rectified as soon as practicable, but in any event within twenty-four (24) hours following the discovery of its occurrence by either Party, the Granting Party shall be entitled to immediately terminate the Services to which the breach relates or, if it relates to all the Services that the Granting Party receives or provides, as applicable, the non-breaching Party shall be entitled to immediately terminate the Agreement in its entirety.

 

(c)                                  The Accessing Party represents, warrants and covenants to the Granting Party that all software code, any related deliverables and any data or 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 or other electronically stored information (collectively, “Disabling Procedures”).

 

(d)                                 Notwithstanding any other limitations in this Agreement, each Accessing Party agrees to notify the applicable Granting Party immediately upon discovery of any Disabling Procedures that are or reasonably suspected to be included in the Services or related 

 

28

 

deliverables, and if Disabling Procedures are discovered or reasonably suspected to be present therein, the Accessing Party shall immediately take all actions reasonably necessary, at its own expense, to identify and eradicate (or equip the other 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 the Disclosing Party’s Personally Identifiable Information, the following terms shall apply:

 

(i)                                     The Receiving Party represents and warrants that its collection, access, use, storage, disposal and disclosure of Personally Identifiable Information meet the objectives of the Privacy Laws.

 

(ii)                                  The Receiving Party shall establish and maintain for the duration of this Agreement or the duration of its access to Personally Identifiable Information (whichever occurs later), policies and procedures consistent with reasonable practice within the financial industry and the Privacy Laws to protect Personally Identifiable Information.  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 Personally Identifiable Information shared by the Disclosing Party under this Agreement.  In addition, the Receiving Party’s policies must protect against any anticipated threats or hazards to the security or integrity of such Personally Identifiable Information, protect against unauthorized access to or use of Personally Identifiable Information that could result in substantial harm or inconvenience to the Disclosing Party and ensure the proper disposal of Personally Identifiable Information.

 

(f)                                   The Receiving Party shall notify the Disclosing Party within two (2) Business Days of any incident where Confidential Information or Personally Identifiable Information 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 Personally Identifiable Information (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 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 law enforcement agencies under one or more Privacy Laws.

 

(g)                                  If at any time the Granting Party determines that any personnel of the Accessing Party 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 

 

29

 

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.

 

(h)                                 The Receiving Party agrees to permit the Disclosing Party and its appropriate regulatory auditors to audit the Receiving Party’s compliance with this Section 8.2 during regular business hours upon reasonable written notice to the Receiving Party; provided that, any audit by the Disclosing Party shall employ reasonable procedures and methods as necessary and appropriate in the circumstances and shall not unreasonably interfere with the Receiving Party’s normal business operations.

 

ARTICLE IX
 DISPUTE RESOLUTION; LIMITATION OF LIABILITY

 

Section 9.1                                    Resolution Procedure.  The resolution of any Dispute that arises between or among the Parties, to the extent not resolved in connection with the governance structure provided in Article V hereof, if applicable, shall be governed by Section 6 of the Master Reorganization Agreement.

 

Section 9.2                                    Limitations on Liability.

 

(a)                                 Consequential and Other Damages.  In no event shall any Party be liable, whether in contract, in tort (including negligence and strict liability), breach of warranty or otherwise, for any special, indirect, incidental, punitive, exemplary, consequential or similar damages which in any way arise out of, relate to, or are a consequence of, its performance or nonperformance hereunder, or the provision of or failure to provide any Service hereunder.

 

(b)                                 Limitation of Liability.  In no event shall the aggregate damages for which each Party shall be liable in connection with or as a result of this Agreement or the Services provided hereunder exceed the aggregate amount of Service Fees actually paid to or contemplated to be paid to such Party or, where the Schedules hereto provide for direct payment by a Service Recipient to a Third-Party Provider, to Third-Party Providers, under this Agreement, with such amount calculated using the maximum Service Fee for each Service.

 

(c)                                  Carve-outs for Liability Regime.  Section 9.2(b) does not apply in relation to liability resulting from:

 

(i)                                     any breach of Applicable Law;

 

(ii)                                  the indemnities contained in Section 6.1 and Section 6.2 of this Agreement;

 

(iii)                               any breach of Article VII or Article VIII of this Agreement;

 

(iv)                              any Security Breach; or

 

(v)                                 fraud, gross negligence, willful misconduct or bad faith.

 

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ARTICLE X
 MISCELLANEOUS

 

Section 10.1                             Notices.  All notices, requests, demands and other communications required hereunder shall be in writing and shall be deemed to have been duly given when (a) delivered in person, (b) sent by facsimile (if applicable) or electronic mail, or (c) deposited in the United States mail or private express mail, postage prepaid.  Such communications must be sent to the respective Parties at the following addresses (or at such other addresses for a party as shall be specified by like notice):

 

If to BNPP, to:

 

BNP Paribas IRB

Batiment E 10 Rue Auguste Perret

92500 Rueil Malmaison, France

Attention: Redouan Znagui, CFO of International Retail Banking

Email: redouan.znagui@bnpparibas.com

 

If to BWHI, to:

 

BancWest Holding Inc.

c/o Bank of the West

180 Montgomery Street

San Francisco, California 94104

Attention: General Counsel

Email: Vanessa.Washington@bankofthewest.com

 

with a copy to:

 

BancWest Holding Inc.

c/o Bank of the West

180 Montgomery Street

San Francisco, California 94104

Attention: Chief Financial Officer

Email: Daniel.Beck@bankofthewest.com

 

If to BoW, to:

 

Bank of the West

180 Montgomery Street

San Francisco, California 94104

Attention: General Counsel

Email: Vanessa.Washington@bankofthewest.com

 

with a copy to:

 

Bank of the West

180 Montgomery Street

San Francisco, California 94104

Attention: Chief Financial Officer

Email: Daniel.Beck@bankofthewest.com

 

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If to FHI, to:

 

First Hawaiian, Inc.

999 Bishop Street, 29th Floor

Honolulu, Hawaii 96813

Attention: Robert S. Harrison, Chairman and CEO

Facsimile: (808) 525-8708

Email: rharrison@fhb.com

 

with a copy to:

 

First Hawaiian, Inc.

999 Bishop Street, 29th Floor

Honolulu, Hawaii 96813

Attention: Michael Ching, Executive Vice President, CFO and Treasurer

Facsimile: (808) 529-6088

Email: mching@fhb.com

 

If to FHB, to:

 

First Hawaiian Bank

999 Bishop Street, 29th Floor

Honolulu, Hawaii 96813

Attention: Michael Ching, Executive Vice President, CFO and Treasurer

Facsimile: (808) 529-6088

Email: mching@fhb.com

 

Any Party may change the address or fax number to which such communications are to be sent to it by giving written notice of change of address to the other Parties in the manner provided above for giving notice.

 

Section 10.2                             Assignment.  This Agreement shall not be assignable, in whole or in part, directly or indirectly, by any Party without the prior written consent of the other Parties, and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be void; provided that any Party may assign this Agreement to a purchaser of all or substantially all of the property and assets of such Party (whether by sale, merger or otherwise) so long as such purchaser expressly assumes, in a written instrument in form reasonably satisfactory to the non-assigning Parties, the due and punctual performance or observance of every agreement and covenant of this Agreement on the part of the assigning Party to be performed or observed.

 

Section 10.3                             Successors and Assigns.  The provisions to this Agreement shall be binding upon, inure to the benefit of and be enforceable by the Parties and their respective successors and permitted assigns.

 

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Section 10.4                             Third-Party Beneficiaries.  Except for the provisions of Article VI, which shall inure to the benefit of each of the Indemnitees, this Agreement is solely for the benefit of the Parties and should not be deemed to confer upon any other Person any right or remedy hereunder and there are no third-party beneficiaries of this Agreement and this Agreement shall not provide any third person with any remedy claim, liability, reimbursement, claim of action or other right in excess of those existing without reference to this Agreement.

 

Section 10.5                             Severability.  In the event any one or more of the provisions contained in this Agreement or the application thereof to any Person or circumstance is determined by a court of competent jurisdiction to be invalid, illegal, void or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein, or the application of such provisions to Persons or circumstances or in jurisdictions other than those as to which have been held invalid, illegal, void or unenforceable, shall remain in full force and effect and shall not in any way be affected, impaired or invalidated thereby.  The Parties shall endeavor in good faith negotiations to replace the invalid, illegal, void or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of invalid, illegal, void or unenforceable provisions.

 

Section 10.6                             Entire Agreement; Amendment.  All Schedules shall be deemed to be incorporated into and made part of this Agreement.  This Agreement, together with the Stockholder Agreement and the Expense Reimbursement Agreement, contain the entire agreement and understanding between the Parties with respect to the provision or procurement of services among the Parties hereto (and supersede any prior agreements, arrangements or understandings between the Parties with respect to such subject matter) and there are no agreements, representations or warranties with respect to such subject matter which are not set forth in this Agreement.  No provision of this Agreement, including any Schedules to this Agreement, may be amended, supplemented or modified except by a written instrument making specific reference to this Agreement or any such Schedules to this Agreement, as applicable, signed by all Parties; provided, however, that with respect to the amendment of Schedules, BNPP’s written agreement shall not be required with respect to the amendment of Schedule A, Schedule B, Schedule C and Schedule D, and neither BWHI’s nor BoW’s approval shall be required with respect to amendments to Schedule E.

 

Section 10.7                             Waiver.  Any waiver, permit, consent or approval of any kind or character of any breach or default under this Agreement, or any waiver of any provision or condition of this Agreement shall be effective only to the extent specifically set forth in writing.  Notwithstanding any provision set forth in this Agreement, no Party shall be required to take any action or refrain from taking any action that would cause it to violate any Applicable Law, statute, legal restriction, regulation, rule or order of any Governmental Authority.

 

Section 10.8                             Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed in the State of New York and without regard to its choice of law principles.

 

Section 10.9                             Jurisdiction; Service of Process.  Any action or proceeding arising out of or relating to this Agreement shall be brought in the courts of the State of New York 

 

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located in the County of New York or in the United States District Court for the Southern District of New York (if any Party to such action or proceeding has or can acquire jurisdiction), and each of the Parties hereto and thereto irrevocably submits to the exclusive jurisdiction of each such court in any such action or proceeding, waives any objection it may now or hereafter have to venue or to convenience of forum, agrees that all claims in respect of the action or proceeding shall be heard and determined only in any such court and agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other court.  The Parties to this Agreement agree that any of them may file a copy of this paragraph with any court as written evidence of the knowing, voluntary and bargained agreement between the Parties hereto to irrevocably waive any objections to venue or to convenience of forum.  Process in any action or proceeding referred to in the first sentence of this Section 10.9 may be served on any party to this Agreement anywhere in the world.

 

Section 10.10                      Waiver of Jury Trial.  EACH PARTY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES (TO THE EXTENT PERMITTED BY APPLICABLE LAW) ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF ANY DISPUTE ARISING UNDER OR RELATING TO THIS AGREEMENT AND AGREES THAT ANY SUCH DISPUTE SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A JURY.

 

Section 10.11                      Counterparts.  This Agreement may be executed in one or more counterparts, including by facsimile or by e-mail delivery of a “.pdf” format data file, all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by each of the Parties and delivered to the other Parties.

 

Section 10.12                      Relationship of the Parties.  The Parties agree that in performing their responsibilities pursuant to this Agreement, they are in the position of independent contractors, and this Agreement shall not create any partnership, joint venture or other similar arrangement between the Parties or any of their respective Subsidiaries.

 

Section 10.13                      Force Majeure.  No Party shall be liable for any failure of performance to the extent attributable to acts, events or causes (including war, riot, rebellion, civil disturbances, flood, storm, fire and earthquake or other acts of God or conditions or events of nature, or any act of any Governmental Authority) beyond its control to prevent in whole or in part performance by such Party under this Agreement.

 

Section 10.14                      Further Assurances.  In addition to the actions specifically provided for elsewhere in this Agreement, each Party hereto shall execute and deliver such additional documents, instruments, conveyances and assurances, take, or cause to be taken, all actions and do, or cause to be done, all things reasonably necessary, proper or advisable to carry out the provisions of this Agreement.

 

Section 10.15                      Subsidiary Action.  Wherever a Party has an obligation under this Agreement to “cause” a Subsidiary of such Party, or any such Subsidiary’s officers, directors, management or employees, to take, or refrain from taking, any action, such obligation shall be deemed to include an undertaking on the part of such Party to cause such Subsidiary to take any 

 

34

 

such action, or such action as may be necessary to accomplish the purposes of this Agreement.  Wherever this Agreement provides that a Subsidiary of a Party has an obligation to take, or refrain from taking, any action, such Party shall be deemed to have an obligation under this Agreement to cause such Subsidiary, or any such Subsidiary’s officers, directors, management or employees, to take, or refrain from taking, such action, or such action as may be necessary to accomplish the purposes of this Agreement.  To the extent necessary or appropriate to give meaning or effect to the provisions of this Agreement or to accomplish the purposes of this Agreement, each Party shall be deemed to have an obligation under this Agreement to cause any Subsidiary thereof, or any such Subsidiary’s officers, directors, management or employees, to take, or refrain from taking, any action as otherwise contemplated herein.  Any failure by a Subsidiary of any Party to take, or refrain from taking, any action contemplated by this Agreement shall be deemed to be a breach of this Agreement by such Party.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement on the day, month and year first above written.

 

 

	
 
    	
BNP   Paribas
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michel Vial
    
	
 
    	
 
    	
Name:   Michel Vial
    
	
 
    	
 
    	
Title:   Head of Development & Strategy
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Emmeline Travers 
    
	
 
    	
 
    	
Name:   Emmeline Travers 
    
	
 
    	
 
    	
Title:   Senior Analyst
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BancWest   Holding Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thibault Fulconis
    
	
 
    	
 
    	
Name:   Thibault Fulconis
    
	
 
    	
 
    	
Title:   Vice Chairman
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Bank   of the West
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thibault Fulconis
    
	
 
    	
 
    	
Name:   Thibault Fulconis
    
	
 
    	
 
    	
Title:   Vice Chairman
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
First   Hawaiian, Inc.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert S. Harrison
    
	
 
    	
 
    	
Name:   Robert S. Harrison 
    
	
 
    	
 
    	
Title:   Chairman of the Board and Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
First   Hawaiian Bank
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert S. Harrison
    
	
 
    	
 
    	
Name:   Robert S. Harrison
    
	
 
    	
 
    	
Title:   Chairman of the Board and Chief Executive Officer
    

 

 

Schedule A

 

Third-Party Services Provided by BWHI Providers to FHI Recipients

 

Capitalized terms used in this Schedule A and not otherwise defined have the respective meanings ascribed thereto in the Transition Services Agreement to which this Schedule A is attached and of which this Schedule A forms a part.

 

	
Functional
   Area
    	
 
    	
Third-Party
   Provider
    	
 
    	
Title of
   Underlying
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service
   Provider
    	
 
    	
Service
   Recipient
    
	
Finance-Ratings   Agency
    	
 
    	
Standard   and Poor’s Risk Solutions (S&P)
    	
 
    	
Contract   for Services between S&P and BoW, effective as of October 13, 2011
    	
 
    	
S&P provides bank   credit ratings to FHB and BoW. S&P, pursuant to its agreement with BoW,   will continue to provide FHB access to credit rating services. FHB will   continue to provide FHB data to BoW, which BoW will consolidate with BoW data   and submit to S&P.
    	
 
    	
The annual fee applicable   to this contract was allocated and fully paid by FHB and BoW through   January 31, 2017.
    	
 
    	
1/31/2017
    	
 
    	
BoW
    	
 
    	
FHB
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Human   Resources
    	
 
    	
Buck   Consultant, LLC (Buck)
    	
 
    	
Letter   of Agreement between Buck and BoW, dated April 26, 2007
    	
 
    	
Buck provides investment   consulting services to the joint-FHB/BoW Retirement and Qualified Account   Based Plan (QABP) Committees, which are responsible for overseeing various   defined benefit plans and defined contribution plans. Buck, pursuant to the   BoW agreement, will continue to provide services to the joint-FHB/BoW QABP   committees for each joint defined benefit or defined contribution plan. BoW   will continue to coordinate Buck’s work, including Buck’s review of   investment performance, monitoring of asset allocation according to the asset   allocation policies, provision of guidance on investments and preparation of   materials for presentation to the respective joint-FHB/BoW QABP committees.   Upon the separation of each joint plan, FHB and BoW will have their own   respective retirement plan committees and will each be responsible for   engaging the required support services for their respective committees.
    	
 
    	
Plan Administration Fees: Any fees for   services rendered by Buck will be processed for payment by BoW and paid from relevant   plan assets but billed to sub accounts according to the quotient of the   respective bank’s sub account asset value at the end of the immediately   preceding calendar year and the total asset value for the immediately   preceding calendar year, except as otherwise specified below.

 

Non-Plan Administration   Fees: Buck will invoice BoW. BoW will charge FHB for FHB’s portion of any   fees for services rendered by Buck that are ineligible for payment from plan   assets as follows:

 

·        Employee Retirement   Plan-related Fees: Total fees attributable to the Employee   Retirement Plan multiplied by the quotient
    	
 
    	
5/31/2017
    	
 
    	
BoW
    	
 
    	
FHB
    

 

1

 

	
Functional
   Area
    	
 
    	
Third-Party
   Provider
    	
 
    	
Title of
   Underlying
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service
   Provider
    	
 
    	
Service
   Recipient
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
of   the respective bank’s sub account asset value at the end of the immediately   preceding calendar year and the bank’s total asset value for the immediately   preceding calendar year.

 

·                   QABP-related   Fees: Total fees attributable to the 401(k) savings plan shared by   BoW and FHB multiplied by the quotient of the respective bank’s participant   account balance in such defined contribution plan divided by total   participant account balance in such defined contribution plan.

 

For   the avoidance of doubt:

 

·                   The payment of any and all   fees attributable to the United California Bank plan will be the   responsibility of BoW.

 

·                   The payment of any and all   fees attributable to the BWC Future Plan (Future Plan) will be the   responsibility of FHI.
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
IT
    	
 
    	
RSA   Security LLC (RSA)
    	
 
    	
Archer   License Agreement between Archer Technologies LLC and BoW, effective as of   December 21, 2009, as amended
    	
 
    	
RSA’s Archer eGRC Solutions   software is a collaborative enterprise governance, risk management, and   compliance program used by FHB and BoW’s Information Technology, Finance,   Operations, Legal, and other functional teams. FHB’s use of the Archer eGRC   Solutions software is related to requirements of BWC Holding Inc., which was   renamed “BancWest Corporation” (the RHC) on the Reorganization Effective   Date. RSA, pursuant to its agreement with BoW, will continue to provide FHB   with licenses to use the Archer eGRC software and any related services.
    	
 
    	
FHB will continue to be   invoiced directly by RSA for relevant charges applicable to FHB. Amounts paid   by FHB to RSA are subject to reimbursement in accordance with the terms and   conditions of the Expense Reimbursement Agreement.
    	
 
    	
51%   Date or 12/31/2018, whichever is earlier
    	
 
    	
BoW
    	
 
    	
FHB
    

 

2

 

	
Functional
   Area
    	
 
    	
Third-Party
   Provider
    	
 
    	
Title of
   Underlying
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service
   Provider
    	
 
    	
Service
   Recipient
    
	
IT-FIS   /
   Disaster Recovery Center
    	
 
    	
CenturyLink, Inc.   (CenturyLink)
    	
 
    	
Master   Services Agreement between Qwest Communications Company, LLC and BoW,   effective as of May 4, 2009, as amended
    	
 
    	
The CenturyLink network is   used by both FHB and BoW to transmit data between their shared primary   production site (Honolulu) and their shared disaster recovery site (Omaha).   FHB’s data is transmitted through the CenturyLink network by BoW.   CenturyLink, pursuant to its agreement with BoW, will continue to allow BoW   to transmit FHB data through the CenturyLink network.
    	
 
    	
CenturyLink will continue   to invoice BoW for services provided to both FHB and BoW. BoW will continue   to charge FHB as follows:

 

1.               Monthly Data Transmission Fee: BoW will charge FHB an eight   hundred dollar ($800.00) per month data transmission fee.

 

2.               Disaster Recovery Circuit Fee: BoW will charge FHB four   thousand three hundred and twenty four dollars ($4,324.00) per month to   maintain two (2) dedicated disaster recovery circuits.

 
    	
 
    	
5/31/2018
    	
 
    	
BoW
    	
 
    	
FHB
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
IT-FIS   /
   Disaster Recovery Center
    	
 
    	
EMC   Corporation (EMC)
    	
 
    	
Consulting   and Training Services Agreement between BoW and EMC, effective as of   May 17, 2006, as amended

Master   Customer Agreement between BNPP and EMC, dated August 11, 2000 (EMC-BNPP   Agreement)
    	
 
    	
EMC provides software   support and maintenance services to FHB and BoW for their third-party   enterprise data storage solution, VMAX, which was acquired by both pursuant   to the EMC-BNPP Agreement. EMC, pursuant to its agreement with BoW, will   continue to provide software support and maintenance services to FHB.
    	
 
    	
EMC will continue to   directly invoice BoW for services provided to both FHB and BoW. Operational   expenses will be allocated between FHB and BoW as a percentage based on FHB   and BoW’s respective number of millions of operations per second (MIPS), with   FHB currently allocated twenty-three percent (23%) of operational expenses   and BoW currently allocated seventy-seven percent (77%) of operational   expenses.
    	
 
    	
5/31/2018
    	
 
    	
BoW
    	
 
    	
FHB
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Operations
    	
 
    	
MasterCard
    	
 
    	
No   Underlying Contract for Sharing Interbank Card Association (ICA) Number
    	
 
    	
FHB and BoW each have   separate agreements directly with MasterCard for purposes of issuing   MasterCard credit cards. However, FHB and BoW share the same ICA number,   which is a four-digit number used by MasterCard for purposes of distributing   settlement funds from lawsuits involving their credit cards (e.g., data   intrusions). Until a separate ICA number is assigned by MasterCard to each   member bank: (a) the same ICA number will be shared by FHB and BoW and   (b) BoW will pay FHB the money owed to FHB which is received from   MasterCard pursuant to the FHB MasterCard agreement, including FHB’s share of   any money recovered by MasterCard relating to fraud losses.
    	
 
    	
There are no direct costs   associated with this contract; however, BoW will continue to promptly   transmit to FHB funds owed to FHB by MasterCard.
    	
 
    	
1/1/2017
    	
 
    	
BoW
    	
 
    	
FHB
    

 

3

 

	
Functional
   Area
    	
 
    	
Third-Party
   Provider
    	
 
    	
Title of
   Underlying
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service
   Provider
    	
 
    	
Service
   Recipient
    
	
Operations-FIS
    	
 
    	
TREEV   LLC (TREEV)
    	
 
    	
Software   License Agreement between TREEV and BoW, dated December 28, 2003
    	
 
    	
TREEV provides online   reporting services and access to the Graphical User Interface software for   mainframe report viewing to FHB and BoW. TREEV, pursuant to its agreement with   BoW, will continue to provide such services to FHB.
    	
 
    	
TREEV will continue to   invoice BoW for services provided to both FHB and BoW. BoW will continue to   charge FHB sixteen-percent (16%) of the total maintenance invoice received by   TREEV.
    	
 
    	
51%   Date or 12/31/2018, whichever is earlier
    	
 
    	
BoW
    	
 
    	
FHB
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Risk   / Compliance
    	
 
    	
Wolters   Kluwer Financial Services (WKFS)
    	
 
    	
Price   waterhouseCoopers TeamMate License Rider and Global License Agreement between   Price waterhouseCoopers LLP and BoW, dated December 15, 1999, as amended
    	
 
    	
WKFS provides licensed   electronic internal audit software to both FHB and BoW. This software is used   by FHB and BoW as an integrated paperless platform from which to manage   internal audits. WKFS, pursuant to its agreement with BoW, will continue to   provide FHB with access to the software.
    	
 
    	
The annual license and   maintenance fee applicable to this contract has been fully prepaid through   December 31, 2016. No additional charges to either BoW or FHB are   anticipated.
    	
 
    	
12/14/2016
    	
 
    	
BoW
    	
 
    	
FHB
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Online   Banking
    	
 
    	
RSA
    	
 
    	
Software   License and Service Agreement between PassMark Security, Inc. and BoW,   dated April 1, 2006, as amended
    	
 
    	
RSA provides multi-factor   authentication for FHB’s online banking portal. RSA, pursuant to its agreement   with BoW, will continue to provide such services to FHB in connection with   FHB’s online banking log-ins.
    	
 
    	
RSA will continue to   invoice BoW directly for services provided to both FHB and BoW. BoW will   continue to charge FHB for FHB’s portion of the total invoice received from   RSA. FHB’s portion of the invoice is based on the number of log-ins by FHB   users.
    	
 
    	
12/31/2016
    	
 
    	
BoW
    	
 
    	
FHB
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Online   Banking-Fiserv
    	
 
    	
Corillian   Corporation (Corillian)
    	
 
    	
Voyager   License Agreement and Voyager Support Services Schedule between Corillian and   BoW, each effective as of January 29, 2008

 

Master   Agreement between Fiserv Solutions, LLC (Fiserv) and FHB,
    	
 
    	
Corillian’s online   application (provided by Fiserv) is used by both FHB and BoW for their online   banking services pursuant to separate license agreements. Although both FHB   and BoW have separate license agreements, Corillian invoices BoW for services   provided to both banks and BoW then invoices FHB for its portion. BoW will   continue to invoice FHB for Corillian services provided to FHB.
    	
 
    	
Corillian will continue to   directly invoice BoW for services provided to both FHB and BoW. BoW will   continue to charge FHB for its portion of the total invoice received from   Corillian. FHB’s portion of the invoice is based on the number of FHB   customers utilizing the online service.
    	
 
    	
12/31/2016
    	
 
    	
BoW
    	
 
    	
FHB
    

 

4

 

	
Functional
   Area
    	
 
    	
Third-Party
   Provider
    	
 
    	
Title of
   Underlying
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service
   Provider
    	
 
    	
Service
   Recipient
    
	
 
    	
 
    	
 
    	
 
    	
effective   as of September 23, 2015
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Finance-IT-Wires
    	
 
    	
ACI   Worldwide Corp. (ACI)
    	
 
    	
License   Agreement L5204 between ACI (f/k/a ACI Worldwide Inc.) and BoW, dated   May 14, 2003

 

Attachment   A03 between ACI and BWC, dated September 25, 2008

 

Assignment   of Attachment A03 to License Agreement L5204, between ACI, FHI, and BWHI,   dated May 12, 2016
    	
 
    	
ACI provides the Money   Transfer System (MTS), as well as wire transfer support, to both FHB and BoW.   ACI, pursuant to its agreement with BWHI, will continue to provide FHB with   MTS access and support.
    	
 
    	
ACI will continue to   directly invoice BoW for all expenses related to the licensing, professional   services, support, and maintenance of the MTS software for both FHB and BoW.   For all costs related to shared software, services, and maintenance, BoW will   continue to charge FHB for FHB’s portion of such costs, based on FHB’s   percentage of the aggregate transaction volume of the two banks. The   percentage allocated to FHB is reviewed and adjusted annually.
    	
 
    	
9/24/2018
    	
 
    	
BWHI
    	
 
    	
FHB
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Amendment   11 between BWHI and ACI, dated May 12, 2016
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

5

 

	
Functional
   Area
    	
 
    	
Third-Party
   Provider
    	
 
    	
Title of
   Underlying
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service
   Provider
    	
 
    	
Service
   Recipient
    
	
Finance-IT-Wires
    	
 
    	
Accuity   Inc. (Accuity)

 
    	
 
    	
Master   License Agreement between Accuity and BoW, dated October 30, 2013, as   amended

 

Master   License Agreement Amendment #9 between Accuity and BoW, dated March 29,   2016
    	
 
    	
Accuity provides FHB and   BoW with transaction and customer screening solutions specific to Anti-Money   Laundering and Office of Foreign Assets Control watch lists as part of MTS   compliance and execution support. Accuity, pursuant to its agreement with   BoW, will continue to provide FHB with screening solution services in connection   with MTS.
    	
 
    	
Accuity will continue to   directly invoice BoW for services provided to both FHB and BoW. BoW will   continue to charge FHB for FHB’s portion of the total invoice received from   Accuity. FHB’s portion of the invoice is based on FHB’s percentage of the   aggregate wire transaction volume of the two banks. The percentage allocated   to FHB is reviewed and adjusted annually.

 
    	
 
    	
9/24/2018
    	
 
    	
BoW
    	
 
    	
FHB
    

 

Schedule A.1

 

Financial Reporting and CCAR Services

 

	
Functional 
   Area
    	
 
    	
Third-Party 
   Provider
    	
 
    	
Title of
   Underlying
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service
   Provider
    	
 
    	
Service
   Recipient
    
	
Risk   / Compliance
    	
 
    	
Enablon   North America Corp. (Enablon)
    	
 
    	
Enablon   Standard Service, Licenses & Maintenance Agreement between Enablon   and BoW, dated July 29, 2011, as amended
    	
 
    	
Enablon is an electronic   front-end user interface with a back-end database tool used by FHB and BoW   for CCAR, model risk management (inventory, attestation, and recommendation)   and minimally for operational risk management (new activity and Risk Control   Self-Assessment aka RCSA). Enablon, pursuant to its contract with BoW, will   continue to provide FHB access to the Enablon tool.
    	
 
    	
Enablon will continue to   directly invoice BoW for all license charges. BoW will continue to charge FHB   for any license charges applicable to FHB. Amounts paid by FHB to BoW are   subject to reimbursement in accordance with the terms and conditions of the   Expense Reimbursement Agreement.
    	
 
    	
Non-Control   Date or 12/31/2018, whichever is earlier
    	
 
    	
BoW
    	
 
    	
FHB
    

 

6

 

	
Functional
   Area
    	
 
    	
Third-Party
   Provider
    	
 
    	
Title of
   Underlying
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service
   Provider
    	
 
    	
Service
   Recipient
    
	
IT
    	
 
    	
Informatica   Corporation (Informatica)
    	
 
    	
License   to Use Informatica Software between Informatica and BoW, effective as of   March 19, 2009
    	
 
    	
Informatica provides data   quality management, data warehouse development, software tools, and   consulting services to FHB and BoW for CCAR purposes. Informatica, pursuant   to its agreement with BoW, will continue to provide such services to FHB.
    	
 
    	
Informatica will continue   to invoice BoW for services provided to both FHB and BoW. BoW will continue   to submit that invoice to BWHI for reimbursement for both BoW’s and FHB’s   proportional share of the total invoice received from Informatica.
    	
 
    	
51%   Date or 12/31/2018, whichever is earlier
    	
 
    	
BoW
    	
 
    	
FHB
    

 

7

 

Schedule B

 

Third-Party Services Provided by FHI Providers to BWHI Recipients

 

Capitalized terms used in this Schedule B and not otherwise defined have the respective meanings ascribed thereto in the Transition Services Agreement to which this Schedule B is attached and of which this Schedule B forms a part.

 

	
Functional
   Area
    	
 
    	
Third-Party
   Provider
    	
 
    	
Title of
   Underlying
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service
   Provider
    	
 
    	
Service
   Recipient(s)
    
	
Finance-Ratings   Agency
    	
 
    	
Moody’s   Investors Service, Inc. (Moody’s Investors)
    	
 
    	
Agreement   between Moody’s Investors and FHI for Bank and Bank Holding Company Ratings
    	
 
    	
Moody’s Investors provides   bank credit ratings to FHB and BoW. Moody’s Investors, pursuant to its   agreement with FHI, will continue to provide BoW access to credit rating   services. FHB will continue to provide FHB data to BoW, which BoW will   consolidate with BoW data and submit to Moody’s Investors.
    	
 
    	
FHB and BoW have each paid   their respective portions of the fee applicable to this contract through   October 31, 2016. BoW will continue to be invoiced directly by Moody’s   Investors for relevant charges applicable to BoW.
    	
 
    	
10/31/2016
    	
 
    	
FHI
    	
 
    	
BoW
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Human   Resources
    	
 
    	
Aon   Consulting (AON)
    	
 
    	
Amended   and Restated Administration and Service Agreement between AON — Executive   Benefits and BWC, effective as of January 1, 2010, as amended
    	
 
    	
FHI sponsors the BWC Deferred   Compensation Plan, BWC Executive Life Insurance Plan, BWC Group Variable   Universal Life Plan, and BWC Supplemental Individual Disability Insurance   Plan for a select group of FHB and BoW employees. AON provides consulting   services, plan design, administration and implementation for these benefits.   When these plans are separated, liabilities and assets will be split between   BoW and FHB based on which employees benefit under each plan (in the case of   plans that benefit both FHB and BoW employees, the plans and assets will be   split based on the individual employee liabilities and taken by the relevant   employer). AON, pursuant to its agreement with FHI, will continue to provide   BoW with access to AON services until such time as the plans can be separated.
    	
 
    	
AON will directly invoice   FHI. FHI will then charge BoW for BoW’s share of the costs according to the   following allocation:

 

·      Non-Participant   Specific Plans: Total fees attributable to the BWC Deferred   Compensation Plan multiplied by the quotient of BoW’s participant account   balance in such plan and the total participant account balance in such plan.

 

·      Participant   Specific Plans: Fees attributable to the BWC Executive Life   Insurance Plan, BWC Group Variable Universal Life Plan and BWC Supplemental Individual   Disability Insurance Plan are participant specific and BoW will be   responsible for fees related to BoW plan participants.
    	
 
    	
12/31/2017
    	
 
    	
FHI
    	
 
    	
BoW
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Human   Resources
    	
 
    	
Transamerica   Retirement Solutions, LLC (Transamerica)
    	
 
    	
Administrative   Services Agreement between Mercer HR Services, LLC (Mercer) and BWC, dated   January 1, 2010, as amended
    	
 
    	
Transamerica (formerly   Mercer) is the plan administrator for two defined contribution plans - the   BWC 401k Savings Plan (401k Plan) and the Future Plan. Transamerica provides   the following services to such plans: depositing payroll deductions and   employer contributions into individual employee accounts; processing   participant loans and balance rollovers to and from the plan; ensuring compliance   with applicable laws and regulations; and completing government filings and   any required reporting/testing.

 

When the 401k Plan is   separated, liabilities and assets will be split between BoW and FHB based on   each bank’s employees. The Future Plan will remain intact with FHB assuming   responsibility of this plan as BoW is no longer a participating employer.   Transamerica, through its agreement with FHI, will continue to
    	
 
    	
Plan Administration Fees: Any fees for   services rendered by Transamerica related to the 401k Plan will paid from the   401k Plan assets.

 

Non-Plan Administration   Fees: Transamerica will invoice FHI. FHI will charge BoW for BoW’s   portion of any fees related to the 401k Plan that are ineligible for payment   from the 401k Plan assets. BoW’s portion shall be allocated as follows:

 

·      Total cost of   contract multiplied by the quotient of the BoW’s headcount divided by the   total 401k Plan headcount.

 

For the avoidance of doubt,   the payment of any and all fees attributable to the Future Plan will be the
    	
 
    	
6/30/2017
    	
 
    	
FHI
    	
 
    	
BoW
    

 

8

 

	
Functional
   Area
    	
 
    	
Third-Party
   Provider
    	
 
    	
Title of
   Underlying
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service
   Provider
    	
 
    	
Service
   Recipient(s)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
provide BoW with access to   the Transamerica services until such time as the 401k Plan can be split.
    	
 
    	
responsibility of FHI.
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Human   Resources
    	
 
    	
Metropolitan   Life Insurance Company (MetLife)
    	
 
    	
MetLife   Group Policy No. 1665775-1-G issued by MetLife to BWC, as   “Policyholder”, with associated certificates dated effective as of   January 1, 2003, as amended (Group Policy)

 

Life   Insurance Performance Agreement between MetLife and BWC, with associated   Certificates dated effective as of January 1, 2014
    	
 
    	
MetLife provides BoW and   FHB with employee insurance including: Life Insurance, Accidental Death and   Dismemberment (AD&D) insurance, Long Term Disability, and, for BoW only,   Short Term Disability benefits and dental administrative services. MetLife,   under the Group policy issued to FHI, will continue to provide employee   insurance services to BoW.

 

 
    	
 
    	
MetLife premiums are based   on premium amounts that FHB and BoW separately self-report to MetLife. Each   of FHB and BoW reports its basis (headcount or compensation) depending on the   specific type of insurance and then pays its respective premium calculated   based on such reported basis directly to MetLife.

 

In the event that MetLife   no longer permits FHB and BoW to self-report premium amounts and pay MetLife   directly, BoW will begin providing its reporting basis to FHB for inclusion   in FHB’s premium reporting to MetLife, and BoW will reimburse FHI for BoW’s   portion of costs FHI is required to pay to FHB using the same basis   (headcount or compensation) that is used under the current methodology.
    	
 
    	
12/31/2016

(Life   Insurance, AD&D insurance, dental administrative services)

 

12/31/2017

(Long   Term Disability and Short Term Disability)
    	
 
    	
FHI
    	
 
    	
BoW
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Human   Resources
    	
 
    	
Wells   Fargo Bank (Wells Fargo)
    	
 
    	
BWC   Umbrella Trust Agreement between BWC and Wachovia Bank, N.A, effective   November 23, 1999

 

BWC   Grantor Trust Agreement between BWC and Wachovia Bank, N.A, dated   August 30, 2006
    	
 
    	
FHI sponsors funded   supplemental executive retirement and defined contribution plans for a select   group of employees of FHB and BoW. Wells Fargo holds the assets related to   these plans and will continue to do so until such plans can be separated.   When these plans are separated, liabilities and associated assets will be   split between BoW and FHB based on which bank’s employees benefit under each   plan. In the case of plans that benefit both FHB and BoW employees, the   assets of which are currently held and tracked in separate subaccounts, the   plans and assets will be split based on the individual employee liabilities   and taken by the relevant employer.
    	
 
    	
Wells Fargo will continue   to directly invoice BoW. Any fees for services rendered by Wells Fargo will   be allocated between BoW and FHB as follows:

 

·                   BoW will be responsible for   fees related to services provided to plan benefitting only BoW employees.

 

·                   FHB will be responsible for   fees related to services provided to plans benefitting only FHB employees.

 

·                   For fees related to plans   benefitting both FHB and BoW employees, each of FHB and BoW shall be responsible   for each bank’s respective portion of any such fees,
    	
 
    	
12/31/2017
    	
 
    	
FHI
    	
 
    	
BoW
    

 

9

 

	
Functional
   Area
    	
 
    	
Third-Party
   Provider
    	
 
    	
Title of
   Underlying
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service
   Provider
    	
 
    	
Service
   Recipient(s)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
based   on each bank’s portion of plan assets (i.e., FHB’s or BoW’s liability divided   by total plan liability).
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
IT
    	
 
    	
Fidelity   Information Services, LLC (FIS)
    	
 
    	
Amended   and Restated Data Processing Agreement between FIS and BWC, dated   June 1, 2011

 

Amendment   to the Amended and Restated Data Processing Agreement between FIS and BWC,   effective as of April 1, 2016

 

Letter   Agreement between FIS, FHI, and BWHI, dated April 11, 2016
    	
 
    	
FIS provides core banking,   payment processing, and hosting services to FHB and BoW. FHB and BoW share   the primary production technology infrastructure environment (in Honolulu),   as well as the use of FIS’ data/transaction processing services. FIS,   pursuant to its agreement with FHI, will continue to provide such services to   BoW.
    	
 
    	
FIS will continue to   directly invoice FHB for services provided to both FHB and BoW, and FHB will   continue to charge BoW fees using the following method:

 

1.     Base Monthly Processing Fees: FHB   shall be responsible for thirty one percent (31%) and BoW shall be   responsible for sixty nine percent (69%) of the Base Monthly Processing Fees   as invoiced by FIS. The party approving any increase in staffing or support   from FIS shall be solely responsible for payment of any corresponding   increase in fees. Any reductions in the monthly Base Processing Fee shall be   credited to the party utilizing the service affected by the reduction. If the   service is utilized by both parties, the parties agree to allocate the credit   using the following formula: FHB shall be allocated twenty three percent   (23%) of any such credit and BoW shall be allocated seventy-seven percent   (77%) of such credit.

 

2.     Operational Expenses: Operational   expenses shall be allocated between the banks as a percentage based on FHB   and BoW’s respective number of millions of operations per second, with FHB   allocated twenty-three percent (23%) of operational expenses and BoW   allocated seventy-seven percent (77%) of operational expenses.
    	
 
    	
5/31/2018
    	
 
    	
FHI
    	
 
    	
BoW
    

 

10

 

	
Functional
   Area
    	
 
    	
Third-Party
   Provider
    	
 
    	
Title of
   Underlying
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service
   Provider
    	
 
    	
Service
   Recipient(s)
    
	
Operations
    	
 
    	
Copyright   Clearance Center, Inc. (Copyright Clearance Center)
    	
 
    	
Annual   Authorizations Service Repertory License Agreement between Copyright   Clearance Center and BWC, effective as of January 31, 2001

 

Amendment   between Copyright Clearance Center and BWC, effective April 1, 2016
    	
 
    	
Copyright Clearance Center   is an online library of copyrighted material, such as periodicals, academic   white papers, and magazines. FHB and BoW leverage this service as a single   source for marketing, legal, and other research. Copyright Clearing Center,   pursuant to the agreement, will continue to provide BoW with access to the   online library.
    	
 
    	
The annual license fee   applicable to this contract has been fully prepaid through January 30,   2017.
    	
 
    	
1/30/2017
    	
 
    	
FHI
    	
 
    	
BoW
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Credit   Operations
    	
 
    	
First   Data Resources Inc. (FDR)
    	
 
    	
Debit   Card Service Agreement between FDR and BWC, dated January 1, 2006, as   amended

 

Star   Financial Holding Company Member Institution Agreement between Star   Networks, Inc. and BWC, dated January 2, 2006, as amended
    	
 
    	
FDR provides ATM driving,   pin/signature card processing and other services and FDR tools to both FHB   and BoW. FDR, pursuant to the contract, will continue to provide ATM driving   and pin/signature debit card processing services to BoW.
    	
 
    	
Both BoW and FHB will   continue to be invoiced directly by FDR for services provided based on each   bank’s respective transaction volume.
    	
 
    	
51%   Date or 12/31/2018, whichever is earlier
    	
 
    	
FHI
    	
 
    	
BoW
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Credit   Operations
    	
 
    	
Total   System Services, Inc. (TSYS)
    	
 
    	
Amended   and Restated Agreement for Services between TSYS and FHB dated July 8,   2015,
    	
 
    	
TSYS is a transaction   processing platform for credit and debit cards. FHB and BoW use TSYS for   credit card servicing, including, but not limited to: card processing, fraud   monitoring, and card production. TSYS, pursuant to the FHB contract, will   continue to provide services and access to the TSYS card platform to BoW.
    	
 
    	
TSYS will continue to   directly invoice FHB. FHB will continue to charge BoW for BoW’s portion of   costs pursuant to the BoW Commercial Credit Card Servicing Agreement, which   is based on transactional processing volume, project related expenses and   other shared service costs allocated based on pro rata share of total   portfolio.
    	
 
    	
10/2/2018
    	
 
    	
FHB
    	
 
    	
BoW
    

 

11

 

	
Functional
   Area
    	
 
    	
Third-Party
   Provider
    	
 
    	
Title of
   Underlying
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service
   Provider
    	
 
    	
Service
   Recipient(s)
    
	
 
    	
 
    	
 
    	
 
    	
as   amended
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Risk   / Compliance
    	
 
    	
G4S   Compliance & Investigations (G4S)
    	
 
    	
Service   Agreement between G4S and BWC, effective as of May 1, 2013
    	
 
    	
G4S provides independent,   third party, toll-free phone numbers and online channels to FHB and BoW   employees. These phone numbers and online channels can be used to report   illicit banking practices directly and anonymously, as required by the   Sarbanes-Oxley Act of 2002. G4S, pursuant to its agreement with FHI, will   continue to provide these services to BoW.
    	
 
    	
G4S will continue to   directly invoice each of FHB and BoW for each bank’s respective portion of   costs for access to G4S based on volume of calls attributable to each bank.
    	
 
    	
12/31/2016
    	
 
    	
FHI
    	
 
    	
BoW
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Finance-Insurance
    	
 
    	
Marsh   Risk & Insurance Services (Marsh USA)
    	
 
    	
Client   Service Agreement between Marsh USA and BWC, dated September 1, 2013   (BWC-Marsh CSA)
    	
 
    	
Marsh USA is a risk   management advisor, consultant, and insurance broker for various lines of   insurance coverage. BWHI, BoW, FHB, and FHI will rely on Marsh USA to assist   in the renewal or placement of any shared D&O policy. Marsh USA, pursuant   to the BWC-Marsh agreement, will continue to provide risk management,   consulting and brokerage services to BWHI and BoW.
    	
 
    	
With respect to costs,   including any premiums and brokerage fees incurred in connection with the   renewal or placement of any shared D&O policy, Marsh USA will invoice BoW   and each named insured (including without limitation, BWHI, FHB, and FHI)   covered under such shared policy will subsequently reimburse BoW in   accordance with the terms and conditions of that certain insurance premium   allocation agreement by and among those named insureds.
    	
 
    	
8/31/2016
    	
 
    	
FHI
    	
 
    	
BWHI

BoW
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Finance-Ratings   Agency
    	
 
    	
Fitch   Ratings, Inc. (Fitch)
    	
 
    	
Fee   Arrangement Letter between Fitch and BWC, dated December 4, 2015, and   effective as of January 1, 2015
    	
 
    	
Fitch provides bank credit   ratings to FHB and BoW. Fitch, pursuant to its agreement with FHI, will   continue to provide BoW access to credit rating services. BoW will continue   to provide BoW data to FHB, for submission to Fitch for rating.
    	
 
    	
The annual fee applicable   to this contract was fully paid by FHI through December 31, 2016.
    	
 
    	
12/31/2016
    	
 
    	
FHI
    	
 
    	
BoW
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Insurance
    	
 
    	
Various   Insurance Underwriters as specified in “Description”
    	
 
    	
Financial   Institution Professional Liability Insurance (Bankers Professional Liability)   Policy
    	
 
    	
FHB and BoW will continue   to share insurance coverage under their existing Bankers Professional   Liability Policy.

 

Underwriters:

 

·              AIG — Illinois   National Insurance Company

·              Chubb (ACE) —   ACE American Insurance Company

·              CNA —   Continental Casualty Company

·              XL — XL   Specialty Insurance Company

·              Axis — Axis   Insurance Company

·              Everest —   Everest National Insurance Company
    	
 
    	
The policy premium   applicable to this shared insurance policy has been fully prepaid through   September 1, 2016, and allocated to each bank in accordance with that   certain Insurance Service and Premium Allocation Agreement, by and among,   BWC, BoW, FHB and FHL Lease Holding Company, Inc., dated effective   January 1, 2001. There will be no additional charges to either BoW or   FHB.
    	
 
    	
9/1/2016
    	
 
    	
FHI
    	
 
    	
BoW
    

 

12

 

	
Functional
   Area
    	
 
    	
Third-Party
   Provider
    	
 
    	
Title of
   Underlying
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service
   Provider
    	
 
    	
Service
   Recipient(s)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
·         Starr — Starr Indemnity &   Liability Company
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Insurance
    	
 
    	
Various   Insurance Underwriters as specified in “Description”
    	
 
    	
Employment   Practices Liability Insurance Policy
    	
 
    	
FHB and BoW will continue   to share insurance coverage under their existing Employment Practices   Liability Insurance Policy.

 

Underwriters:

 

·         AIG — Illinois   National Insurance Company

·         Chubb (ACE) —   ACE American Insurance Company

·         Axis — Axis   Insurance Company
    	
 
    	
The policy premium   applicable to this shared insurance policy has been fully prepaid through   September 1, 2016, and allocated to each bank in accordance with that   certain Insurance Service and Premium Allocation Agreement, by and among,   BWC, BoW, FHB and FHL Lease Holding Company, Inc., dated effective   January 1, 2001. There will be no additional charges to either BoW or   FHB.
    	
 
    	
9/1/2016
    	
 
    	
FHI
    	
 
    	
BoW
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Insurance
    	
 
    	
Various   Insurance Underwriters as specified in “Description”
    	
 
    	
Fiduciary   Liability Insurance / Employee Benefit Plan Fiduciary Liability Insurance Policy
    	
 
    	
FHB and BoW will continue   to share insurance coverage under their existing Fiduciary Liability   Insurance / Employee Benefit Plan Fiduciary Liability Insurance Policy.

 

Underwriters:

 

·         AIG — National   Union Fire Insurance Company of Pittsburgh, Pa.

·         Chubb (ACE) —   ACE American Insurance Company
    	
 
    	
The policy premium   applicable to this shared insurance policy has been fully prepaid through   September 1, 2016, and allocated to each bank in accordance with that   certain Insurance Service and Premium Allocation Agreement, by and among,   BWC, BoW, FHB and FHL Lease Holding Company, Inc., dated effective   January 1, 2001. There will be no additional charges to either BoW or   FHB.
    	
 
    	
9/1/2016
    	
 
    	
FHI
    	
 
    	
BoW
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Insurance
    	
 
    	
Various   Insurance Underwriters as specified in “Description”
    	
 
    	
Financial   Institution Bond / Electronic and Computer Crime Policy
    	
 
    	
FHB and BoW will continue   to share insurance coverage under their existing Financial Institution Bond /   Electronic and Computer Crime Policy.

 

Underwriters:

 

·         AIG — National   Union Fire Insurance Company of Pittsburgh, Pa.

·         Chubb (ACE) —   ACE American Insurance Company

·         CNA —   Continental Casualty Company

·         Axis — Axis   Insurance Company

·         Chubb —   Federal Insurance Company
    	
 
    	
The policy premium   applicable to this shared insurance policy has been fully prepaid through   September 1, 2016, and allocated to each bank in accordance with that   certain Insurance Service and Premium Allocation Agreement, by and among,   BWC, BoW, FHB and FHL Lease Holding Company, Inc., dated effective   January 1, 2001. There will be no additional charges to either BoW or   FHB.
    	
 
    	
9/1/2016
    	
 
    	
FHI
    	
 
    	
BoW
    

 

13

 

	
Functional
   Area
    	
 
    	
Third-Party
   Provider
    	
 
    	
Title of
   Underlying
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service
   Provider
    	
 
    	
Service
   Recipient(s)
    
	
Insurance
    	
 
    	
Various   Insurance Underwriters as specified in “Description”
    	
 
    	
Security &   Privacy Liability Insurance (Cyber) Policy
    	
 
    	
FHB and BoW will continue   to share insurance coverage under their existing Cyber Policy.

 

Underwriters:

 

·         AIG — AIG   Specialty Insurance Company

·         Axis — Axis   Insurance Company

·         Endurance —   Endurance American Insurance Company

·         QBE — QBE   Specialty Insurance Company

·         XL — Greenwich   Insurance Company

·         Nationwide —   Scottsdale Insurance Company

·         AIG — Illinois   National Insurance Company

·         Starr — Starr   Indemnity & Liability Company

·         CNA -   Continental Casualty Company
    	
 
    	
The policy premium   applicable to this shared insurance policy has been fully prepaid through   September 1, 2016, and allocated to each bank in accordance with that   certain Insurance Service and Premium Allocation Agreement, by and among,   BWC, BoW, FHB and FHL Lease Holding Company, Inc., dated effective   January 1, 2001. There will be no additional charges to either BoW or   FHB.
    	
 
    	
9/1/2016
    	
 
    	
FHI
    	
 
    	
BoW
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Insurance
    	
 
    	
Great   American Insurance Company (GAIC)
    	
 
    	
GAIC   Corporate Protection Insurance Policy plus Amendatory Endorsement, dated   effective September 1, 2015 (Contingent Liability Policy)
    	
 
    	
FHB and BoW will continue   to share insurance coverage under their existing Contingent Liability Policy.
    	
 
    	
The policy premium   applicable to this shared insurance policy has been fully prepaid through   September 1, 2018, and allocated to each bank in accordance with that   certain Insurance Service and Premium Allocation Agreement, by and among,   BWC, BoW, FHB and FHL Lease Holding Company, Inc., dated effective   January 1, 2001.  There will be no additional charges to either BoW   or FHB.
    	
 
    	
9/01/2018
    	
 
    	
FHI
    	
 
    	
BoW
    

 

14

 

Schedule C

 

Direct Services Provided from BWHI Providers to FHI Recipients

 

Capitalized terms used in this Schedule C and not otherwise defined have the respective meanings ascribed thereto in the Transition Services Agreement to which this Schedule C is attached and of which this Schedule C forms a part.

 

	
Functional 
   Area
    	
 
    	
Third-Party 
   Provider
    	
 
    	
Title of 
   Underlying 
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service 
   Provider
    	
 
    	
Service 
   Recipient
    
	
BancWest   Investment Services (BWIS)
    	
 
    	
N/A
    	
 
    	
Investment   Services Agreement between BWIS and FHB, effective as of November 14,   2003, as amended (BWIS Investment Services Agreement)
    	
 
    	
BWIS (d/b/a First Hawaiian   Investment Services, in the State of Hawaii, Territory of Guam, and the   Commonwealth of the Northern Mariana Islands) markets and sells investment   advisory, and insurance products and services in most branches of FHB. BWIS   will continue to provide broker/dealer, investment advisory, and insurance   products and services to customers of FHB.
    	
 
    	
BWIS will continue to   retain 3.75% of gross commission revenue attributable to FHB accounts. BWIS   will also charge FHB for FHB’s portion of relevant regulatory and vendor   fees, such as FINRA licensing, Customer Relationship Management, Pershing   clearing/custody charges, and imaging/workflow costs attributable to FHB’s   actual usage of the BWIS imaging/workflow system. For the avoidance of doubt,   FHB will not be responsible for any costs incurred by BWIS in connection with   the development or implementation of the thencurrent BWIS imaging/workflow   system unless otherwise mutually agreed in writing by FHB and BWIS. In the   event that FHB notifies BWIS of its selection of a replacement broker-dealer,   FHB and BWIS will comply with terms and conditions specified in   Section 15.D of the BWIS Investment Services Agreement with respect to   the provision and payment of any deconversion support services that are   required or requested by FHB in connection with any such transfer to a   replacement-broker designated by FHB. In addition to the fees set out in the   BWIS Investment Services Agreement, FHB will pay for commercially reasonable   expenses incurred by BWIS in connection with the deconversion support   services that are requested and approved by FHB.
    	
 
    	
5/1/2017
    	
 
    	
BWIS
    	
 
    	
FHB
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Finance
    	
 
    	
N/A
    	
 
    	
FHB   Check Processing Agreement between BoW and FHB, dated December 10, 2009,   as amended

 

Amendment   to FHB Check Processing Agreement between BoW and FHB, dated June 1,   2016
    	
 
    	
FHB issues FHB Official   Bank checks, Personal Money Orders, and Interest Bearing checks to its   customers, which are payable through BoW. BoW will continue to allow FHB to   issue such instruments payable through BoW, and FHB will settle the issued   amounts with BoW within one (1) Business Day of the applicable issuance   date. BoW will also provide check maintenance services to FHB, including   processing of stop payment requests, check clearing, and escheatment to the   State of Hawaii, as applicable.
    	
 
    	
BoW will charge FHB monthly   for various transaction service fees, which is offset by an earnings credit   of 20bps annualized rate of the average daily ledger balance.
    	
 
    	
5/31/2017
    	
 
    	
BoW
    	
 
    	
FHB
    

 

15

 

	
Functional 
   Area
    	
 
    	
Third-Party 
   Provider
    	
 
    	
Title of 
   Underlying 
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service 
   Provider
    	
 
    	
Service 
   Recipient
    
	
Human   Resources
    	
 
    	
N/A
    	
 
    	
In-House   Program; No Separate Underlying Contract
    	
 
    	
BoW will continue to   provide certain administration services to FHB, including: preparing and   facilitating retirement board presentations and communications, performing   compliance reviews and government filings, coordinating efforts related to   executive benefits, and processing invoices from benefit plan service   providers.
    	
 
    	
BoW will not charge FHB for   administrative services provided by BoW given the immaterial magnitude of   administrative services (i.e., ~30 hours per month) and limited remaining   duration of the arrangement.
    	
 
    	
5/31/2018
    	
 
    	
BoW
    	
 
    	
FHB
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
IT-FIS   /
   Disaster Recovery Center
    	
 
    	
N/A
    	
 
    	
In-House   Program; No Separate Underlying Contract
    	
 
    	
BoW hosts the IBM Capacity   Back-Up mainframe for disaster recovery services in the BoW Omaha Disaster   Recovery Center and provides mainframe technology infrastructure, data   replication services, and network support for FHB and BoW. BoW will continue   to allow FHB access to BoW’s Omaha Disaster Recovery Center, ensure mainframe   disaster recovery and data replication services, and provide network support   services to FHB, including the continued provision of services supplied to   BoW through Third-Party Providers, such as CenturyLink, EMC and Sirius.
    	
 
    	
BoW will continue to charge   FHB for twenty-three (23%) of the disaster recovery maintenance and support   services. The cost is dictated by the infrastructure and network fees.
    	
 
    	
51%   Date or 12/31/2018, whichever is earlier
    	
 
    	
BoW
    	
 
    	
FHB
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Online   Banking-IT
    	
 
    	
N/A
    	
 
    	
Bank   Services Agreement between BoW and FHB, effective as of September 22,   2004, as amended (Bank Services Agreement)

 

Amendment   to Bank Services Agreement between BoW and FHB, effective as of April 1,   2016 (Amendment to Bank Services Agreement)
    	
 
    	
BoW hosts FHB’s Online   Banking platform and provides related support services. FHB’s Online Banking   platform servers are also physically located on BoW premises and are   maintained and supported by BoW personnel. BoW will continue to allow FHB’s   Online Banking platform servers to be located on BoW premises and provide FHB   with the required support services at substantially the same levels and in   substantially the same form as was required on the Effective Date.
    	
 
    	
BoW will continue to charge   FHB a fixed price of thirty-three thousand and eighty dollars ($33,080) per   month.
    	
 
    	
12/31/2016   (online banking services only)
    	
 
    	
BoW
    	
 
    	
FHB
    

 

16

 

	
Functional 
   Area
    	
 
    	
Third-Party 
   Provider
    	
 
    	
Title of 
   Underlying 
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service 
   Provider
    	
 
    	
Service 
   Recipient
    
	
Finance-IT-Wires
    	
 
    	
N/A
    	
 
    	
Bank   Services Agreement

 

Amendment   to Bank Services Agreement

 

MTS   Compensation Agreement between BoW and FHB, effective as of July 21,   2008

 

MTS   Service Level Agreement between BoW and FHB, undated
    	
 
    	
BoW will continue to host   and support FHB’s access and use of the ACI MTS on BoW’s Advanced Interactive   eXecutive platform, including related ancillary services such as Fedline,   SWIFT, and Advantage. The servers are physically located on BoW premises and   are maintained and supported by BoW personnel.
    	
 
    	
BoW will continue to charge   FHB a fixed cost of seven thousand five hundred ($7,500) per month to cover   the one BoW full time employee who is required to support this process.
    	
 
    	
9/24/2018   (wire services only)
    	
 
    	
BoW
    	
 
    	
FHB
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Operations
    	
 
    	
N/A
    	
 
    	
Global   Network Access BNPP Family ATMs: No Separate Underlying Contract 
    	
 
    	
Pursuant to a reciprocal   arrangement among BNPP, FHB, BoW, and other affiliated entities, FHB debit   and credit card holders are permitted to use BoW automated teller machines   (ATMs) without surcharge or network fees. 
    	
 
    	
BoW will continue to allow   FHB customers to use its ATMs without charge (see Schedule D for the   reciprocal arrangement in which BoW customers are permitted to use FHB’s ATMs   without charge). 
    	
 
    	
4/5/2017   
    	
 
    	
BoW   
    	
 
    	
FHB
    

 

17

 

Schedule D

 

Direct Services Provided from FHI Providers to BWHI Recipients

 

Capitalized terms used in this Schedule D and not otherwise defined have the respective meanings ascribed thereto in the Transition Services Agreement to which this Schedule D is attached and of which this Schedule D forms a part.

 

	
Functional 
   Area
    	
 
    	
Third-Party 
   Provider
    	
 
    	
Title of 
   Underlying 
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service 
   Provider
    	
 
    	
Service 
   Recipient(s)
    
	
Human   Resources
    	
 
    	
N/A
    	
 
    	
Declaration   of Trust and Trust Agreement between FHI and FHB, dated December 19,   1975, as amended

 

FHB   Employee Benefits Department Service Agreement, dated June 24, 2009
    	
 
    	
FHI sponsors the Employees’   Retirement Plan of BWC (ERP Plan) for FHB’s and BoW’s current and former   employees, with plan assets held in two subaccounts, one for each of BoW and   FHB. BoW employees will continue to participate in the ERP Plan until   assets/liabilities can be spun off into a separate BoW-sponsored benefit   plan. FHB, as plan trustee, will continue to provide services to the ERP Plan   and will provide services to the separate BoW-sponsored benefit plan once it   is established. Such services include: Issuing checks from the plan to plan   participants in pay status; receiving and depositing employer plan   contributions; and executing transactions based on investment manager   direction.
    	
 
    	
FHB, as plan trustee, will continue   to charge BoW for trustee and custodian services related to BoW participants   of the ERP Plan. 

 

Once a separate   BoW-sponsored defined benefit plan is established, FHB will charge BoW for   any fees associated with services performed for that separate plan. 
    	
 
    	
12/31/2017
    	
 
    	
FHB
    	
 
    	
BoW
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Human   Resources
    	
 
    	
N/A
    	
 
    	
FHB   Investment Management Agreement - Corporate between FHB and Retirement Plan   Committee of the Employees’ Retirement Plan of BWC, dated September 30,   2015 (Investment Management Agreement)
    	
 
    	
FHI sponsors the ERP Plan   for FHB’s and BoW’s current and former employees, with plan assets held in   two subaccounts, one for each of BoW and FHB. BoW employees will continue to   participate in the ERP Plan until assets/liabilities can be spun off into a   separate BoW-sponsored benefit plan. FHB, as investment advisor, will   continue to provide services to the ERP Plan and will provide services to the   separate BoW-sponsored benefit plan once it is established. Such services   include: investment management advice; development/maintenance of plan   investment policy; tracking plan asset performance; and providing periodic   reporting. FHB will also direct the plan trustee to execute transactions   based on the plan’s investment policy.
    	
 
    	
FHB, as investment advisor,   will continue to charge BoW for services provided pursuant to the Investment   Management Agreement as follows: 

·      0.40% multiplied by BoW’s sub account   value 

 

Once a separate   BoW-sponsored defined benefit plan is established, FHB will charge BoW for   services as follows: 

·      0.40% multiplied by the total asset   value of the separate BoW-sponsored benefit plan 
    	
 
    	
12/31/2016
    	
 
    	
FHB
    	
 
    	
BoW
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Credit   Operations
    	
 
    	
N/A
    	
 
    	
Servicing   Agreement
    	
 
    	
FHB provides residential   mortgage loan servicing to BoW, including payments and customer support. FHB   will continue to
    	
 
    	
FHB will continue to charge   BoW monthly servicing fees based on $6.50 per loan, and for certain loans   originated prior to October 31, 2002, an annualized fee of 12.5 bps of the   outstanding principal balance. Any out of pocket expenses incurred by FHB,   such as interest shortfalls, coupon charges, recording fees for Iowa and   Wyoming, miscellaneous charges, ad hoc reporting, and guaranty fees, will   also be charged to BoW. 
    	
 
    	
11/1/2016
    	
 
    	
FHB
    	
 
    	
BoW
    

 

18

 

	
Functional
   Area
    	
 
    	
Third-Party
   Provider
    	
 
    	
Title of
   Underlying
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service
   Provider
    	
 
    	
Service
   Recipient(s)
    
	
 
    	
 
    	
 
    	
 
    	
between   BoW and FHB, dated April 1, 1999
    	
 
    	
provide residential   mortgage loan servicing to BoW.
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Credit   Operations
    	
 
    	
N/A
    	
 
    	
BoW   Commercial Credit Card Servicing Agreement between FHB and BoW, dated   April 30, 2013 (BoW Commercial Credit Card Servicing Agreement)
    	
 
    	
FHB will continue to   provide servicing support for BoW’s commercial credit cards, including but   not limited to: accounting and settlement; business continuity/disaster   recovery; and account management/project management support.
    	
 
    	
FHB will charge BoW a   forty-five thousand dollar ($45,000) per month fee for commercial credit card   services provided by FHB pursuant to the BoW Commercial Credit Card Servicing   Agreement (including, but not limited to, the core and non-core services and   any other related expenses as outlined therein).  For the avoidance of doubt, FHB will   continue to charge BoW for its portion of the TSYS costs in accordance with   the TSYS line item in Schedule B above.
    	
 
    	
10/2/2018
    	
 
    	
FHB
    	
 
    	
BoW
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Human   Resources
    	
 
    	
N/A
    	
 
    	
In-House   Program; No Separate Underlying Contract
    	
 
    	
FHB will provide   administration services to BoW including, but not limited to, preparing and   facilitating retirement board presentations and communications, performing   compliance reviews and government filings, coordinating efforts related to   executive benefits, and processing invoices from benefit plan service   providers.
    	
 
    	
FHB will not charge BoW for   administrative services provided by FHB given the immaterial magnitude of   administrative services (i.e., ~5 hours per month) and limited remaining   duration of the arrangement. 
    	
 
    	
12/31/2017
    	
 
    	
FHB
    	
 
    	
BoW
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Operations
    	
 
    	
N/A
    	
 
    	
Global   Network Access BNPP Family ATMs: No Separate Underlying Contract 
    	
 
    	
Pursuant to a reciprocal   arrangement among BNPP, FHB, BoW, and other affiliates, BoW and BNPP debit   and credit card holders are permitted to use FHB ATMs without surcharge or   network fees. 
    	
 
    	
FHB will continue to allow   BoW and BNPP customers to use its ATMs without charge (see Schedule C and   Schedule E for the reciprocal arrangements in which FHB customers are   permitted to use BoW’s and BNPP’s ATMs without charge). 
    	
 
    	
4/5/2017   
    	
 
    	
FHB
    	
 
    	
BoW   and BNPP (BNPP to be considered a BWHI Recipient for purposes of this Service
    

 

19

 

Schedule E

 

Direct and Third-Party Services Provided by BNPP to FHI Recipients

 

Capitalized terms used in this Schedule E and not otherwise defined have the respective meanings ascribed thereto in the Transition Services Agreement to which this Schedule E is attached and of which this Schedule E forms a part.

 

	
Functional
   Area
    	
 
    	
Third-Party
   Provider
    	
 
    	
Title of
   Underlying
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service
   Provider
    	
 
    	
Service
   Recipient
    
	
Credit   Operations
    	
 
    	
Moody’s   Analytics
    	
 
    	
Master   License and Services Agreement between BNP Paribas Securities Corp and   Moody’s Analytics, dated October 8, 2012, also identified as Moody’s   Analytics Agreement No. 67053 (BNPP MLSA)

 

FHB   Order Form for Software Products and Maintenance Services, effective as   of April 1, 2016, also identified as Moody’s Analytics Agreement   No. 00060417 (FHB Order Form)
    	
 
    	
Moody’s Analytics’ RiskAnalyst   software is used FHB for spreading and analyzing company financial statements   for commercial loans. Pursuant to the BNPP MLSA, FHB and Moody’s Analytics   have entered into and executed the FHB Order Form, which provides FHB with a   license from Moody’s Analytics to use the RiskAnalyst software   program.  
    	
 
    	
Pursuant to the FHB Order   Form, FHB will pay an annual license fee directly to Moody’s Analytics for a   3-year subscription period; such license fee is calculated based on FHB’s   commercial and industrial loan portfolio size.
    	
 
    	
51%   Date or 12/31/2018, whichever is earlier
    	
 
    	
BNPP
    	
 
    	
FHB
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Finance
    	
 
    	
Moody’s   Analytics
    	
 
    	
Terms   of Agreement between Moody’s Analytics and BNP Paribas RCC, Inc., dated   January 1,
    	
 
    	
Moody’s Analytics provides access   to sovereign research services (including the CreditView software and any   other relevant applications) to FHB. Moody’s Analytics, pursuant to its   agreement with BNPP, will continue to provide FHB with access to the relevant   sovereign research services and software licenses.
    	
 
    	
Moody’s Analytics will   continue to invoice FHB directly based on the number of licenses utilized by   FHB.
    	
 
    	
12/31/2016
    	
 
    	
BNPP
    	
 
    	
FHB
    

 

20

 

	
Functional
   Area
    	
 
    	
Third-Party
   Provider
    	
 
    	
Title of
   Underlying
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service
   Provider
    	
 
    	
Service
   Recipient
    
	
 
    	
 
    	
 
    	
 
    	
2012
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Human   Resources
    	
 
    	
Cornerstone
    	
 
    	
Agreement   between BNPP and Cornerstone for the Provision of the Cornerstone Learning   Management System
    	
 
    	
Cornerstone provides a   Learning Management System for BNPP to assign required online training to FHB   employees. BNPP allows FHB to utilize Cornerstone for its own online   training. The system contains policies and tracks employee training   transcripts and policy compliance agreements. Cornerstone, pursuant to its   agreement with BNPP, will continue to allow FHB access to its system.
    	
 
    	
BNPP will continue to not   charge FHB for use of the Cornerstone system as long as it maintains some   level of ownership in FHB and until such time that BNPP no longer requires   FHB employees to take BNPP required training.
    	
 
    	
Non-Control   Date or 12/31/2018, whichever is earlier
    	
 
    	
BNPP
    	
 
    	
FHB
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
IT
    	
 
    	
IBM   Growth Relationship Offering (GRO)
    	
 
    	
Attachment   for GRO to that ARF Consulting 2014 — IBM France 552 118 465 between BNP   Paribas S.S and Compagnie IBM France, dated May 15, 2014
    	
 
    	
IBM GRO resources are used   by FHB for CCAR ETL development and data governance. IBM GRO, pursuant to its   agreement with BNPP, will continue to provide FHB with access to such   resources.
    	
 
    	
IBM will continue to   directly invoice FHB for relevant charges applicable to FHB.
    	
 
    	
51%   Date or 12/31/2018, whichever is earlier
    	
 
    	
BNPP
    	
 
    	
FHB
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
IT
    	
 
    	
Oracle   France (Oracle)
    	
 
    	
Software   Master Agreement between Oracle and BNP Paribas SA, dated May 28, 2014
    	
 
    	
Oracle provides integrated   financial database management human resource planning software for use by FHB   and BoW. Oracle, pursuant to its agreement with BNPP, will continue to   provide FHB with access to Oracle licenses.
    	
 
    	
BNPP will continue to   directly invoice BoW. BoW will charge FHB for FHB’s portion of the costs for   access to the Oracle system and support based on FHB employee headcount.
    	
 
    	
51%   Date or 12/31/2018, whichever is earlier
    	
 
    	
BNPP
    	
 
    	
FHB
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Finance
    	
 
    	
IBM   Cognos
    	
 
    	
Agreement   between BNPP and IBM for the Provision of the IBM Cognos System
    	
 
    	
FHB uses the IBM Cognos   system to perform budget planning and analysis. IBM Cognos, pursuant to its   agreement with BNPP, will continue to provide FHB with access and licenses to   the Cognos system to perform budget planning and analysis.
    	
 
    	
BNPP will continue to not   charge FHB for access to the IBM Cognos system.
    	
 
    	
3/31/2017
    	
 
    	
BNPP
    	
 
    	
FHB
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Risk   / Compliance
    	
 
    	
Moody’s   Analytics
    	
 
    	
Terms   of Agreement between Moody’s Analytics and BNP Paribas RCC, Inc. dated   effective January 1, 2012
    	
 
    	
On an annual basis,   regulators release economic scenarios for use in CCAR and DFAST stress tests,   which are comprised of forecasts of macroeconomic variables. Pursuant to the   BNPP TOA, Moody’s Analytics has been engaged by BoW to provide more granular   and detailed versions of the variable forecasts for each of the regulatory   economic scenarios, as well as for custom bank-designed economic scenarios.   These expanded variable forecasts are used by the RHC, BoW, and FHB as inputs   in the
    	
 
    	
Amounts paid by FHB are   subject to reimbursement in accordance with the terms and conditions of the   Expense Reimbursement Agreement.
    	
 
    	
Non-Control   Date or 12/31/2018, whichever is earlier
    	
 
    	
BNPP
    	
 
    	
FHB
    

 

21

 

	
Functional
   Area
    	
 
    	
Third-Party
   Provider
    	
 
    	
Title of
   Underlying
   Contract
    	
 
    	
Description of Services
    	
 
    	
Service Fee
    	
 
    	
End Date
    	
 
    	
Service
   Provider
    	
 
    	
Service
   Recipient
    
	
 
    	
 
    	
 
    	
 
    	
(BNPP   TOA)
    	
 
    	
execution of the semiannual   RHC CCAR stress test and the annual BoW and FHB DFAST stress tests. When   Moody’s Analytics delivers the variable forecasts to BoW, such forecasts are   placed in a database hosted at BoW. When FHB needs the variable forecasts for   CCAR or DFAST purposes, it requests them from BoW, which delivers the   forecasts in the form of a data file transmitted via email, CITRIX   connection, or FIRM message. BoW will continue to deliver the Moody’s   Analytics variable forecasts to FHB upon request to the extent necessary to   support FHB’s involvement in the CCAR program.
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Risk / Compliance 
    	
 
    	
Moody’s Analytics, Inc.   (Moody’s Analytics) or another Third-Party Provider
    	
 
    	
Agreement   Regarding Subscription Order Form to Publications, Services and Online   Databases between BNP Paribas USA, Inc. (BNPP USA) or another BNPP Subsidiary   and Moody’s Analytics or another Third-Party Provider (the Data Agreement)
    	
 
    	
On an annual basis, regulators release economic   scenarios for use in CCAR and DFAST stress tests, which are comprised of   forecasts of macroeconomic variables. Pursuant to the Data Agreement, Moody’s   Analytics or another Third-Party Provider will be engaged by BNPP USA or   another BNPP Subsidiary to provide more granular and detailed versions of the   variable forecasts for each of the regulatory economic scenarios, as well as   for custom bank-designed economic scenarios. These expanded variable   forecasts will be used by the RHC, BoW, and FHB as inputs in the execution of   the semiannual RHC CCAR stress test and the annual BoW and FHB DFAST stress   tests. Moody’s Analytics or another Third-Party Provider, pursuant to the   Data Agreement, will deliver, or permit BoW or another BNPP Subsidiary to   deliver, the variable forecasts to FHB upon request to the extent necessary   to support FHB’s involvement in the CCAR program. 
    	
 
    	
Moody’s Analytics or another Third-Party Provider will   invoice BNPP USA or another BNPP Subsidiary for this service, and BNPP USA or   the other BNPP Subsidiary, as applicable, will proportionately allocate the   cost of the services between BoW and FHB. Amounts allocated to and paid by   FHB are subject to reimbursement in accordance with the terms and conditions   of the Expense Reimbursement Agreement.
    	
 
    	
Non-Control Date or   12/31/2018, whichever is earlier 
    	
 
    	
BNPP 
    	
 
    	
FHB 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Operations 
    	
 
    	
N/A 
    	
 
    	
Global Network Access   BNPP Family ATMs; No Separate Underlying 
    	
 
    	
Pursuant to a reciprocal arrangement among BNPP, FHB,   BoW, and other affiliated entities, FHB debit and credit card holders are   permitted to use BNPP ATMs without surcharge or network fees. 
    	
 
    	
BNPP will continue to allow FHB customers to use its   ATMs without charge (see Schedule D for the reciprocal arrangement in which   BNPP customers are permitted to use FHB’s ATMs without charge). 
    	
 
    	
4/5/2017 
    	
 
    	
BNPP 
    	
 
    	
FHB 
    

 

22

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