CONTRACT FOR CONSULTING
SERVICE
PARTY OF THE FIRST
PART: Firstbank Puerto Rico, (hereinafter “the Bank”)
represented by Mr. Luis Beauchamp in his capacity as Senior
Executive Vice President, and
PARTY OF THE OTHER
PART: FERNANDO L. BATLLE, of legal age, married and a resident of
San Juan, Puerto Rico (hereinafter BATLLE).
A. BATLLE
concluded his employment relationship with the Bank on
April 28, 2005, where he served as Executive Vice President.
During the course of his service to the Bank, BATLLE acquired
intimate knowledge about the policies, styles, processes and
strategic goals of the Bank and its parent company and its sister
companies and affiliates (the Corporations), as well as developing
a expertise in the financial and banking business of Puerto
Rico.
B. BATLLE has
indicated his availability in establishing a new relationship with
the Bank to provide professional consulting services as an
independent contractor.
C. The Bank
understands that the consulting services offered by BATLLE as an
independent contractor can be of great benefit to it, subject to
the conditions specified herein.
BATLLE will
provide services to the Bank as a Consultant regarding financial
and banking matters, or other businesses or corporations related to
the Bank, or provide assistance and cooperation with respect to any
lawsuit, claim or dispute, or investigation regarding issues with
respect to which he has knowledge or which were the responsibility
of the Consultant while he was an employee of the Bank or the
Corporations; including conferences with representatives or lawyers
of the Bank or the Corporations and in the preparation for
depositions and hearings.
2.
INDEPENDENT CONTRACTOR:
BATLLE
acknowledges that any service provided to the Bank under this
contract will be as an independent contractor and that his
relationship with the Bank will not be one of employment, nor of an
agent and principal, and that neither BATLLE nor his employees act
as representatives or agents of the Bank. As an independent
contractor, BATLLE is responsible for paying all necessary expenses
for the fulfillment of his obligations as a consultant, including
the payment of salaries and benefits to his employees,
transportation expenses, office expenses and others, and that he
assumes the risk of making a profit or incurring a loss in his
business as a Consultant. The reasonable extraordinary expenses in
which BATLLE incurs, on trips taken at the request of the Bank
outside of Puerto Rico, will be reimbursed upon presentation of
receipts. Also, BATLLE acknowledges, that he is not a partner, nor
a co-employer, nor is he entering into a joint venture with the
Bank in his consulting business.
This contract will
be in effect for the term of one (1) year commencing on
May 1, 2005 and ending in
April 30, 2006.
For his
professional consulting services as an independent contractor,
BATLLE will receive a monthly fee of $4,166.00 during the term of
the contract. This will give the Bank the right to use the services
of BATLLE for a maximum of 22 hours per month, for a maximum of 250
hours per year. As an independent contractor, BATLLE is responsible
for paying any taxes with respect to fees paid pursuant to this
contract and for submitting all reports required by law. The Bank
will withhold the amount prescribed by law with respect to the
payment of fees to independent contractors. BATLLE acknowledges
that as an independent contractor, he has no right to any of the
benefits the Bank provides to its employees, including a pension or
retirement plan. BATLLE acknowledges and agrees that he maintain in
effect and will pay any and every go
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