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Message: Announces Reimbursement of Expenses
| February 3, 2009 |
| C.A. Bancorp Inc. Announces Reimbursement of Expenses |
| TORONTO, ONTARIO--(Marketwire - Feb. 3, 2009) - C.A. Bancorp Inc. (TSX:BKP) ("C.A. Bancorp") announces that it will reimburse Sentry Select Capital Corp. ("Sentry Select") for the salaries of certain individuals whose full time services are by provided to Charter Real Estate Investment Trust ("Charter") by Sentry Select, on behalf of C.A. Bancorp. As approved by the independent members of C.A. Bancorp's board of directors (the "Independent Directors"), this change becomes effective February 1, 2009. As a result of the reimbursement, C.A. Bancorp will have additional expenses of approximately $700,000 per annum, which is an estimate based on current data. C.A. Bancorp, through its wholly-owned subsidiary, C.A. Realty Management Inc., is obligated to provide certain services and personnel to Charter. The salaries of such individuals have, to date, been borne by Sentry Select under the terms of an Administration Agreement between C.A. Bancorp and Sentry Select. However, under the terms of the Administration Agreement, Sentry Select has the right to request reimbursement for the salaries of such individuals. The decision to reimburse such salaries was made after C.A. Bancorp received a notice (the "Notice") from Sentry Select under the terms of the Administration Agreement. The Administration Agreement provides Sentry Select with the right to request reimbursement for the salaries of certain employees providing services to C.A. Bancorp. To date, Sentry Select has been paying the salaries of all of such employees directly since their respective dates of hire. Sentry Select continues to provide administration services and staffing to C.A. Bancorp under the Administration Agreement. As required by the terms of the Administration Agreement, the Independent Directors considered C.A. Bancorp's options in response to the Notice. Following such consideration and with advice from independent legal counsel, Macleod Dixon LLP, it was determined that C.A. Bancorp was obligated to reimburse the employee salaries as identified by the Notice if it wished to continue to have access to such employees. Trading information C.A. Bancorp Inc.'s common shares trade on the Toronto Stock Exchange under the symbol BKP. C.A. Bancorp Inc. |
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