Shareholders at Bermuda Commercial Bank will tomorrow vote to terminate its e-banking joint venture at its annual general meeting.

The joint venture was set up between the bank and First Curacao International Bank, which owns 48.05 percent of BCB, but has been ended in order to set up a new agreement, the bank said.

BCB had gone into a joint venture with an affiliate of First Curacao to develop its e-banking platform in November 2000. Under the agreement the affiliate and First Curacao would develop the software for BCB and in return for paying for the costs, would own all the intellectual property rights and net profits would then be shared equally between BCB and the First Curacao affiliate.

But, according to the bank's annual report, the agreement was terminated in February 2003 and will be replaced by a software licence agreement providing for an initial licence fee together with an annual support and maintenance fee.

The report said that this fee has not yet been finalised as the Internet banking system is still undergoing final testing.

The initial licence fee and the annual fees after this will not become due and payable until October 2004, the report added.

"It is anticipated that the initial licence fee will be approximately $80,000 per year and the annual support and maintenance fee will be approximately 15 percent of the licence fee," said the report.

The AGM will also receive the company's financial statements, report on the declaration of dividends, elect directors, agree on the fees for directors and look at the appointment of auditors.