EXHIBIT 4.5
SIXTH AMENDMENT TO RIGHTS AGREEMENT
SIXTH AMENDMENT TO RIGHTS AGREEMENT, dated as of September 17, 2003
("Amendment"), to the rights agreement, dated as of September 2, 1999, as
amended on July 27, 2001, January 25, 2002, March 27, 2003, May 6, 2003 and July
8, 2003 (the "Rights Agreement"), between Capital Environmental Resource Inc.
(the "Company") and American Stock Transfer & Trust Company (the "Rights
Agent"). Any capitalized terms not otherwise defined herein shall have the
meaning ascribed to such term in the Rights Agreement.
WHEREAS, the Board of Directors of the Company believes it to be in the
best interest of the Company and its shareholders to enter into a Series 1
Preferred Subscription Agreement (the "Fifth Subscription Agreement"), by and
among the Company and certain investors and dated September __, 2003, which
agreement provides for, among other things, the subscriptions by such investors
for shares of the Company's Series 1 Preferred Shares (the "Series 1 Preferred
Shares"), and warrants (together with the Warrants (as defined in the Third
Amendment to Rights Agreement), the "Warrants") to purchase Company common
shares (the "Common Shares").
WHEREAS, as a result of the foregoing, the Company desires that the
transactions contemplated by the Fifth Subscription Agreement, and the investors
listed therein be exempt from the provisions of the Rights Agreement;
WHEREAS, the Company and the Rights Agent have heretofore executed and
entered into the Rights Agreement;
WHEREAS, pursuant to Section 27 of the Rights Agreement, the Company
may supplement or amend any provision of the Rights Agreement in accordance with
the provisions of Section 27 thereof;
NOW, THEREFORE, in consideration of the premises and the mutual
agreements set forth herein, the parties hereby agree as follows:
Section 1. AMENDMENTS TO SECTION 1 OF THE RIGHTS AGREEMENT.
(a) The definition of "Acquiring Person" in Section 1 of the Rights
Agreement is hereby amended by deleting the last sentence thereof and adding the
following sentence in lieu thereof:
"Notwithstanding anything in this Agreement to the contrary, no
Investor, Permitted Assignee, or Substitute Investor (as such terms are defined
in the Subscription Agreement dated July 27, 2001 by and among the Company and
the persons listed in Schedule A thereto (the "Subscription Agreement"), the
Subscription Agreement dated February 5, 2002 by and among the Company and the
persons listed in Schedule A thereto (the "Second Subscription Agreement"), the
Series 1 Preferred Subscription
Agreement, dated March 27, 2003 by and among the Company and the persons listed
in Schedule A thereto (the "Third Subscription Agreement")), the Series 1
Preferred Subscription Agreement, dated July 8, 2003 by and among the Company
and the persons listed in Schedule A thereto (the "Fourth Subscription
Agreement"), or the Series 1 Preferred Subscription Agreement, dated September
__, 2003 by and among the Company and the persons listed in Schedule A thereto
(the "Fifth Subscription Agreement") nor any of their Affiliates or Associates,
shall become an Acquiring Person, either individually or collectively, by virtue
of (A) the announcement of the transactions contemplated by the Subscription
Agreement, the Second Subscription Agreement, the Third Subscription Agreement,
the Fourth Subscription Agreement or the Fifth Subscription Agreement, (B) the
issuance and acquisition of Common Shares pursuant to the Subscription
Agreement, (C) the issuance and acquisition of shares of the Company's Series 1
Preferred Shares (the "Series 1 Preferred Shares") pursuant to the Second
Subscription Agreement, the Third Subscription Agreement, the Fourth
Subscription Agreement or the Fifth Subscription Agreement, (D) the issuance and
acquisition of Common Shares upon conversion of the Series 1 Preferred Shares
issued and acquired pursuant to the Second Subscription Agreement, the Third
Subscription Agreement, the Fourth Subscription Agreement or the Fifth
Subscription Agreement, (E) the issuance and acquisition of Common Shares upon
exercise of the Warrants, (F) the execution and delivery of the Subscription
Agreement, the Second Subscription Agreement, the Third Subscription Agreement,
the Fourth Subscription Agreement or the Fifth Subscription Agreement, or (G)
the consummation of the transactions contemplated by the Subscription Agreement,
the Second Subscription Agreement, the Third Subscription Agreement, the Fourth
Subscription Agreement or the Fifth Subscription Agreement."
(b) The definition of "Distribution Date" in Section 1 of the Rights
Agreement is hereby amended by deleting the last sentence thereof and adding the
following sentence in lieu thereof:
"Notwithstanding anything in this Agreement to the contrary, neither
(A) the announcement of the transactions contemplated by the Subscription
Agreement, the Second Subscription Agreement, the Third Subscription Agreement,
the Fourth Subscription Agreement or the Fifth Subscription Agreement, (B) the
issuance and acquisition of Common Shares pursuant to the Subscription
Agreement, (C) the issuance and acquisition of Series 1 Preferred Shares
pursuant to the Second Subscription Agreement, the Third Subscription Agreement,
the Fourth Subscription Agreement or the Fifth Subscription Agreement, (D) the
issuance and acquisition of Common Shares upon conversion of the Series 1
Preferred Shares issued and acquired pursuant to the Second Subscription
Agreement, the Third Subscription Agreement, the Fourth Subscription Agreement
or the Fifth Subscription Agreement, (E) the issuance and acquisition of Common
Shares upon exercise of the Warrants, (F) the execution and delivery of the
Subscription Agreement, the Second Subscription Agreement, the Third
Subscription Agreement, the Fourth Subscription Agreement or the Fifth
Subscription Agreement, nor (G) the consummation of the transactions
contemplated by the Subscription Agreement, the Second Subscription Agreement,
the Third Subscription Agreement, the Fourth
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Subscription Agreement or the Fifth Subscription Agreement, shall be deemed to
cause a Distribution Date."
(c) The definition of "Permitted Offer" in Section 1 of the Rights
Agreement is hereby amended and restated in its entirety and replaced with the
following:
"Permitted Offer" shall mean (i) a tender offer or an exchange offer
for all outstanding Common Shares, (ii) an issuance of Common Shares or other
equity securities of the Company in connection with a merger, consolidation or
acquisition, in both cases at a price and on terms determined by at least a
majority of the members of the Board of Directors, and concurred in by a
majority of those members who are not officers or employees of the Company and
who are not, and are not representatives, Affiliates or Associates of, an
Acquiring Person or the person making the offer in the case of (i) or the entity
the Company is seeking to merge or consolidate with or acquire, as the case may
be, in the case of (ii), after receiving advice, in the case of either (i) or
(ii), from one or more investment banking firms, to be (a) at a price and on
terms that are fair to shareholders (taking into account all factors that such
members of the Board deem relevant including, without limitation, prices that
could reasonably be achieved if the Company or its assets were sold on an
orderly basis designed to realize maximum value) and (b) otherwise in the best
interests of the Company and its shareholders or (iii) the offer, issuance or
acquisition of (a) Common Shares pursuant to the terms and conditions of the
Subscription Agreement, (b) Series 1 Preferred Shares pursuant to the terms and
conditions of the Second Subscription Agreement, the Third Subscription
Agreement, the Fourth Subscription Agreement or the Fifth Subscription
Agreement, (c) Common Shares upon conversion of Series 1 Preferred Shares issued
or acquired pursuant to the terms and conditions of the Second Subscription
Agreement, the Third Subscription Agreement, the Fourth Subscription Agreement
or the Fifth Subscription Agreement, or (d) Common Shares pursuant to the
exercise of the Warrants."
(d) The definition of "Share Acquisition Date" in Section 1 of the
Rights Agreement is hereby amended by deleting the last sentence thereof and
adding the following sentence in lieu thereof:
"Notwithstanding anything in this Agreement to the contrary, neither
(A) the announcement of the transactions contemplated by the Subscription
Agreement, the Second Subscription Agreement, the Third Subscription Agreement,
the Fourth Subscription Agreement or the Fifth Subscription Agreement, (B) the
issuance and acquisition of Common Shares pursuant to the Subscription
Agreement, (C) the issuance and acquisition of Series 1 Preferred Shares
pursuant to the Second Subscription Agreement, the Third Subscription Agreement,
the Fourth Subscription Agreement or the Fifth Subscription Agreement, (D) the
issuance and acquisition of Common Shares upon conversion of the Series 1
Preferred Shares issued and acquired pursuant to the Second Subscription
Agreement, the Third Subscription Agreement, the Fourth Subscription Agreement
or the Fifth Subscription Agreement, (E) the issuance and acquisition of Common
Shares upon exercise of the Warrants, (F) the execution and delivery of the
Subscription Agreement, the Second Subscription Agreement, the Third
Subscription
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Agreement, the Fourth Subscription Agreement or the Fifth Subscription
Agreement, nor (G) the consummation of the transactions contemplated by the
Subscription Agreement, the Second Subscription Agreement, the Third
Subscription Agreement, the Fourth Subscription Agreement or the Fifth
Subscription Agreement, shall be deemed to cause a Share Acquisition Date."
(e) The definition of "Triggering Event" in Section 1 of the Rights
Agreement is hereby amended by deleting the last sentence thereof and adding the
following sentence in lieu thereof:
"Notwithstanding anything in this Agreement to the contrary, neither
(A) the announcement of the transactions contemplated by the Subscription
Agreement, the Second Subscription Agreement, the Third Subscription Agreement,
the Fourth Subscription Agreement or the Fifth Subscription Agreement, (B) the
issuance and acquisition of Common Shares pursuant to the Subscription
Agreement, (C) the issuance and acquisition of Series 1 Preferred Shares
pursuant to the Second Subscription Agreement, the Third Subscription Agreement,
the Fourth Subscription Agreement or the Fifth Subscription Agreement, (D) the
issuance and acquisition of Common Shares upon conversion of the Series 1
Preferred Shares issued and acquired pursuant the Second Subscription Agreement,
the Third Subscription Agreement, the Fourth Subscription Agreement or the Fifth
Subscription Agreement, (E) the issuance and acquisition of Common Shares upon
exercise of the Warrants, (F) the execution and delivery of the Subscription
Agreement, the Second Subscription Agreement, the Third Subscription Agreement,
the Fourth Subscription Agreement or the Fifth Subscription Agreement, nor (G)
the consummation of the transactions contemplated by the Subscription Agreement,
the Second Subscription Agreement, the Third Subscription Agreement, the Fourth
Subscription Agreement or the Fifth Subscription Agreement, shall constitute a
Triggering Event."
Section 2. AMENDMENT TO SECTION 11(A)(II) OF THE RIGHTS AGREEMENT.
Section 11(a)(ii) of the Rights Agreement is hereby amended by deleting the last
sentence thereof and adding the following sentence in lieu thereof:
"Notwithstanding anything in this Agreement to the contrary, neither
(A) the announcement of the transactions contemplated by the Subscription
Agreement, the Second Subscription Agreement, the Third Subscription Agreement,
the Fourth Subscription Agreement or the Fifth Subscription Agreement, (B) the
issuance and acquisition of Common Shares pursuant to the Subscription
Agreement, (C) the issuance and acquisition of Series 1 Preferred Shares
pursuant to the Second Subscription Agreement, the Third Subscription Agreement,
the Fourth Subscription Agreement or the Fifth Subscription Agreement, (D) the
issuance and acquisition of Common Shares upon conversion of the Series 1
Preferred Shares issued and acquired pursuant to the Second Subscription
Agreement, the Third Subscription Agreement, the Fourth Subscription Agreement
or the Fifth Subscription Agreement, (E) the issuance and acquisition of Common
Shares upon exercise of the Warrants, (F) the execution and delivery of the
Subscription Agreement, the Second Subscription Agreement, the Third
Subscription
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Agreement, the Fourth Subscription Agreement or the Fifth Subscription
Agreement, nor (G) the consummation of the transactions contemplated by the
Subscription Agreement, the Second Subscription Agreement, the Third
Subscription Agreement, the Fourth Subscription Agreement or the Fifth
Subscription Agreement, shall constitute a Flip-In Event."
Section 3. AMENDMENT TO SECTION 13(A) OF THE RIGHTS AGREEMENT. Section
13(a) of the Rights Agreement is hereby amended by deleting the last sentence
thereof and adding the following sentence in lieu thereof:
"Notwithstanding anything in this Agreement to the contrary, neither
(A) the announcement of the transactions contemplated by the Subscription
Agreement, the Second Subscription Agreement, the Third Subscription Agreement,
the Fourth Subscription Agreement or the Fifth Subscription Agreement, (B) the
issuance and acquisition of Common Shares pursuant to the Subscription
Agreement, (C) the issuance and acquisition of Series 1 Preferred Shares
pursuant to the Second Subscription Agreement, the Third Subscription Agreement,
the Fourth Subscription Agreement or the Fifth Subscription Agreement, (D) the
issuance and acquisition of Common Shares upon conversion of the Series 1
Preferred Shares issued and acquired pursuant the Second Subscription Agreement,
the Third Subscription Agreement, the Fourth Subscription Agreement or the Fifth
Subscription Agreement, (E) the issuance and acquisition of Common Shares upon
exercise of the Warrants, (F) the execution and delivery of the Subscription
Agreement, the Second Subscription Agreement, the Third Subscription Agreement,
the Fourth Subscription Agreement or the Fifth Subscription Agreement, nor (G)
the consummation of the transactions contemplated by the Subscription Agreement,
the Second Subscription Agreement, the Third Subscription Agreement, the Fourth
Subscription Agreement or the Fifth Subscription Agreement, shall constitute a
Flip-Over Event."
Section 4. AMENDMENT TO SECTION 15 OF THE RIGHTS AGREEMENT. Section 15
of the Rights Agreement is hereby amended by deleting the last sentence thereof
and adding the following sentence in lieu thereof:
"Nothing in this Agreement shall be construed to give any holder of
Rights or any other Person any legal or equitable rights, remedy or claim under
this Agreement in connection with any transactions contemplated by the
Subscription Agreement, the Second Subscription Agreement, the Third
Subscription Agreement, the Fourth Subscription Agreement or the Fifth
Subscription Agreement."
Section 5. DEFINITION. The term "Agreement", as used in the Rights
Agreement, shall be deemed to refer to the Rights Agreement, as amended hereby.
Section 6. FULL FORCE AND EFFECT. Except as expressly amended hereby,
the Rights Agreement shall continue in full force and effect in accordance with
the provisions thereof on the date hereof.
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Section 7. GOVERNING LAW. This Amendment shall be governed by and
construed in accordance with the laws of the State of Delaware applicable to
contracts to be made and performed entirely within such State.
Section 8. COUNTERPARTS. This Amendment may be executed in two
counterparts, each of which shall be deemed an original, but both of which
together shall constitute one and the same instrument.
Section 9. SEVERABILITY. If any term, provision, covenant or
restriction of this Amendment is held by a court of competent jurisdiction or
other authority to be invalid, illegal, or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Amendment, and of the
Rights Agreement, shall remain in full force and effect and shall in no way be
effected.
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IN WITNESS WHEREOF, the parties hereto have caused this Sixth Amendment
to be duly executed as of the day and year first above written.
CAPITAL ENVIRONMENTAL RESOURCE INC.
By: /s/ Xxxxxx X. Xxxxxx III
-------------------------------------
Name: Xxxxxx X. Xxxxxx, III
Title: Secretary
AMERICAN STOCK TRANSFER & TRUST COMPANY
By: /s/ Xxxxxxx X. Xxxxxx
-------------------------------------
Name: Xxxxxxx X. Xxxxxx
Title: Vice-President
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