Document:

Exhibit 10.13

 

INVESTOR RIGHTS AGREEMENT

 

GFL ENVIRONMENTAL INC.,

 

MAGNY COURS INVESTMENT PTE LTD.

 

and

 

GFL BORROWER II (CAYMAN) LP

 

Dated as of ·, 2019

 

 

TABLE OF CONTENTS

 

	
ARTICLE 1
    
	
INTERPRETATION
    
	
 
    
	
Section 1.1
    	
Definitions
    	
1
    
	
Section 1.2
    	
Headings and Table of   Contents
    	
4
    
	
Section 1.3
    	
Gender and Number
    	
4
    
	
Section 1.4
    	
Rules of   Construction
    	
5
    
	
Section 1.5
    	
Interpretation
    	
5
    
	
 
    
	
ARTICLE 2
    
	
NOMINATION RIGHTS
    
	
 
    
	
Section 2.1
    	
Board of Directors
    	
5
    
	
Section 2.2
    	
Board Nomination Rights
    	
5
    
	
Section 2.3
    	
Board Committees
    	
6
    
	
Section 2.4
    	
Board Nomination   Procedure
    	
6
    
	
Section 2.5
    	
Reserved
    	
7
    
	
Section 2.6
    	
Resignation,   Death, Incapacity or Disqualification of Director
    	
7
    
	
Section 2.7
    	
Director Compensation
    	
7
    
	
Section 2.8
    	
Chair of the Board
    	
8
    
	
Section 2.9
    	
Lead Director
    	
8
    
	
Section 2.10
    	
Permitted Disclosure
    	
8
    
	
 
    
	
ARTICLE 3
    
	
INFORMATION RIGHTS
    
	
 
    
	
Section 3.1
    	
Information Rights
    	
8
    
	
Section 3.2
    	
Certain Reports
    	
8
    
	
Section 3.3
    	
Confidentiality
    	
9
    
	
 
    
	
ARTICLE 4
    
	
INVESTOR REPRESENTATIVE
    
	
 
    
	
Section 4.1
    	
Investor Representative
    	
9
    
	
 
    
	
ARTICLE 5
    
	
REPRESENTATIONS AND WARRANTIES
    
	
 
    
	
Section 5.1
    	
Representations and   Warranties by the Parties to this Agreement
    	
9
    
	
 
    
	
ARTICLE 6
    
	
MATTERS RELATING TO PRE-EMPTIVE RIGHTS
    
	
 
    
	
Section 6.1
    	
Pre-Emptive Right
    	
10
    
	
 
    
	
ARTICLE 7
    
	
GENERAL PROVISIONS
    
	
 
    
	
Section 7.1
    	
All Shares Subject to   this Agreement
    	
12
    

 

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Section 7.2
    	
Reserved
    	
12
    
	
Section 7.3
    	
Affiliated Transferees   Agreement to be Bound
    	
12
    
	
Section 7.4
    	
Articles
    	
12
    
	
Section 7.5
    	
Term
    	
12
    
	
Section 7.6
    	
Injunctive Relief
    	
12
    
	
Section 7.7
    	
Notices
    	
12
    
	
Section 7.8
    	
Time of Essence
    	
13
    
	
Section 7.9
    	
Time Periods
    	
13
    
	
Section 7.10
    	
Further Assurances
    	
14
    
	
Section 7.11
    	
Independent Legal   Advice
    	
14
    
	
Section 7.12
    	
Assignment
    	
14
    
	
Section 7.13
    	
Waiver, Amendment
    	
14
    
	
Section 7.14
    	
Entire Agreement
    	
14
    
	
Section 7.15
    	
Successors and Assigns
    	
14
    
	
Section 7.16
    	
Severability
    	
15
    
	
Section 7.17
    	
Governing Law; Consent   to Jurisdiction; WAIVER OF JURY TRIAL
    	
15
    
	
Section 7.18
    	
Counterparts
    	
15
    
	
Section 7.19
    	
No Recourse
    	
16
    
	
Section 7.20
    	
Corporate Opportunity
    	
16
    
	
Section 7.21
    	
Margin Loan Matters
    	
17
    

 

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INVESTOR RIGHTS AGREEMENT

 

THIS AGREEMENT is made as of the · day of ·, 2019.

 

B E T W E E N:

 

Magny Cours Investment Pte Ltd., a Singapore private limited company, GFL Borrower II (Cayman) LP, a Cayman Islands exempted limited partnership

 

– and –

 

GFL Environmental Inc., a corporation amalgamated under the laws of Ontario (the “Corporation”).

 

WHEREAS, on the date hereof, the Corporation will consummate an underwritten initial public offering of its Subordinate Voting Shares (the “Initial Public Offering”); and

 

WHEREAS, the Parties wish to enter into this Agreement to provide for the matters set out herein, including provisions with respect to the nomination of individuals to be elected as directors of the Corporation, governance matters and other shareholder rights.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged by each of the Parties), the Parties agree as follows:

 

ARTICLE 1
 INTERPRETATION

 

Section 1.1                                   Definitions

 

In this Agreement,

 

(1)                                 “Affiliate” means, with respect to any specified 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 specified Person (for the purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise); provided that, for purposes of this Agreement, the Corporation and its Subsidiaries shall not be considered Affiliates of the Investor and its other Affiliates and the Investor and its Affiliates shall not be considered Affiliates of the Corporation and its Subsidiaries. In this Agreement, any Person will be deemed to be Affiliated with any other Person if they are Affiliates of each other;

 

(2)                                 “Affiliated Person” has the meaning attributed to such term in Section 7.19;

 

(3)                                 “Affiliated Transferee” means any entity that is directly or indirectly wholly owned by GIC (Ventures) Pte Ltd. (excluding any Portfolio Company);

 

(4)                                 “Agreement” means this Investor Rights Agreement as may be supplemented or amended from time to time, and the expressions “hereof”, “herein”, “hereto”, “hereunder”, “hereby” and similar expressions refer to this Investor Rights Agreement, and unless otherwise indicated, references to Articles and Sections are to the specified Articles and Sections, as applicable, of this Agreement;

 

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(5)                                 “Articles” means the articles of the Corporation, as may be amended, replaced or superseded from time to time;

 

(6)                                 “Available Nominees” means the number of Directors based on the size of the Board at such time;

 

(7)                                 “beneficial ownership” means, with respect to any securities, direct or indirect ownership of, or control or direction over, those securities (whether through contract, arrangement, understanding or otherwise); and “beneficially own” and “beneficially owned” shall have a correlative meaning;

 

(8)                                 “Board” means the board of directors of the Corporation;

 

(9)                                 “Bought Deal” means a sale of securities of the Corporation to an underwriter for reoffering to the public as described in the definition of “bought deal agreement” in Section 7.1 of National Instrument 44-101 — Short Form Prospectus Distributions, as the same may be amended from time to time, and any successor legislation thereto, except where otherwise expressly provided;

 

(10)                          “Business Day” means any day of the year, other than a Saturday, Sunday or any day on which commercial banks are closed for business in Toronto, Ontario, Canada; New York, New York, United States; or London, England;

 

(11)                          “Chair” has the meaning attributed to such term in Section 2.8;

 

(12)                          “Claim” has the meaning attributed to such term in Section 7.19;

 

(13)                          “Committee” has the meaning attributed to such term in Section 2.3(1);

 

(14)                          “Conditions” has the meaning attributed to such term in Section 2.4(4);

 

(15)                          “Confidential Information” means any information concerning the Corporation or its Subsidiaries furnished prior to or after the date of this Agreement by or on behalf of the Corporation or its Representatives to the Investor or its Representatives; provided that Confidential Information does not include information: (a) that is or has become publicly available other than as a result of a disclosure by the Investor or its Representatives in violation of this Agreement; (b) that was already known to the Investor or its Representatives or was in the possession of the Investor or its Representatives prior to its being furnished by or on behalf of the Corporation or its Representatives; (c) that is received by the Investor or its Representatives from a source other than the Corporation or its Representatives (provided that the source of such information was not actually known by the Investor or its Representative to be bound by a confidentiality agreement with, or other contractual obligation of confidentiality to, the Corporation with respect to such information); (d) that was independently developed or acquired by the Investor or its Representatives or on its or their behalf without use of or reference to any Confidential Information; and provided further that the Investor and its Representatives shall be permitted to disclose any Confidential Information to the extent that it is required, in the good faith determination of the Investor or the Representative, to disclose such information by applicable law, rule, regulation or other legal process, including by the rules of any securities exchange or by any self-regulatory body (provided that the Investor or the Representative takes reasonable steps (to the extent legally permissible) to minimize the extent of any such required disclosure; provided further that no such steps to minimize disclosure shall be required where disclosure is made (i) in response to a request by a regulatory or self-regulatory authority or (ii) in connection with a routine audit or examination by a bank examiner or auditor and such audit or examination does not specifically reference the Corporation or this Agreement);

 

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(16)                          “control” or “controlled” shall have the meaning set forth in the definition of “Affiliate” hereunder;

 

(17)                          “Convertible Securities” has the meaning attributed to such term in Section 6.1(1);

 

(18)                          “Corporate Opportunity” has the meaning attributed to such term in Section 7.20;

 

(19)                          “Corporation” has the meaning attributed to such term in the preamble of this Agreement;

 

(20)                          “Director” has the meaning attributed to such term in Section 2.1;

 

(21)                          “Directors Election Meeting” means any annual meeting or special meeting of Shareholders at which, or any solicitation of Shareholders to approve a shareholder resolution in connection with which, Directors are to be elected to the Board;

 

(22)                          “Distributed Securities” has the meaning attributed to such term in Section 6.1(1);

 

(23)                          “Distribution” has the meaning attributed to such term in Section 6.1(1);

 

(24)                          “Independent Director” means an independent Director, as determined by the NGC Committee in accordance with the rules promulgated by the NYSE , the TSX and applicable law;

 

(25)                          “Initial Public Offering” has the meaning attributed to such term in the recitals of this Agreement;

 

(26)                          “Investor” means Magny Cours Investment Pte Ltd. and its Affiliated Transferees;

 

(27)                          “Investor Affiliated Persons”  has the meaning attributed to such term in Section 7.20;

 

(28)                          “Investor Representative” has the meaning attributed to such term in Section 4.1;

 

(29)                          “Margin Loan Documentation” means the margin loan agreement by and among Bank of Montreal, as Administrative Agent and Calculation Agent, the Investor and the lenders party thereto dated ·, 2019 and the agreements and documents ancillary thereto;

 

(30)                          “Multiple Voting Shares” means the multiple voting shares in the capital of the Corporation;

 

(31)                          “NGC Committee” means the Nomination, Governance and Compensation Committee of the Board and any replacement or successor committee of the Board that is responsible for, among other things, compensation, nomination and governance matters (including the selection of Nominees, subject to this Agreement and the Other Investor Agreements) or the Board if there is no such committee;

 

(32)                          “Nomination Letter” has the meaning attributed to such term in Section 2.4(2);

 

(33)                          “Nominee” or “Nominees” means the nominee and nominees that are proposed for election as Directors by the Corporation and included in a management information circular of the Corporation relating to the election of Directors at a Directors Election Meeting or any other individual that the Investor is entitled to replace as a Director or has otherwise nominated as a Director in accordance with the terms of this Agreement;

 

(34)                          “NYSE” means The New York Stock Exchange;

 

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(35)                          “Other Investors” means collectively, BCEC—GFL Holdings (Guernsey) L.P., OTPP Environmental Services Trust, Patrick Dovigi, Sejosa Holdings Inc. and Josaud Holdings Inc. and, in each case, their Affiliated Transferees;

 

(36)                          “Other Investor Agreements” means collectively, investor rights agreements between the Corporation and each of the Other Investors, dated the date hereof;

 

(37)                          “Party” or “Parties” means one or more of the parties to this Agreement;

 

(38)                          “Person” means any individual, partnership, corporation, company, association, trust, joint venture or limited liability company;

 

(39)                          “Portfolio Company”  means any portfolio company (as such term is commonly used in the private equity industry) of GIC (Ventures) Pte Ltd., any investment fund, managed account, side-by-side vehicle, co-investment vehicle or similar investment vehicle managed, advised or controlled by GIC (Ventures) Pte Ltd. or its Affiliates;

 

(40)                          “Preemptive Voting Shares” has the meaning attributed to such term in Section 6.1(1);

 

(41)                          “Representative” has the meaning attributed to such term in Section 3.3;

 

(42)                          “Rights to Subscribe” has the meaning attributed to such term in Section 6.1(1);

 

(43)                          “Shareholder” means any Person that is a registered holder or beneficial owner of Shares and, where the context permits, upon the death of a Shareholder who is an individual, means such Shareholder’s personal legal representatives;

 

(44)                          “Shares” means, collectively, the Multiple Voting Shares and the Subordinate Voting Shares;

 

(45)                          “Subordinate Voting Shares” means the subordinate voting shares in the capital of the Corporation;

 

(46)                          “Subscription Securities” has the meaning attributed to such term in Section 6.1(1);

 

(47)                          “Subsidiaries” means, with respect to any entity (the “parent”), any corporation, limited liability company, company, firm, association, limited partnership or trust of which such parent, at the time in respect of which such term is used, (a) beneficially owns, directly or indirectly, more than 50% of the equity, membership interest or beneficial interest, on a consolidated basis, or (b) is the general partner or beneficially owns, directly or indirectly, shares of the equity, membership interest or beneficial interest having the power to elect more than 50% of the directors, trustees, managers or other officials having powers analogous to that of directors of a corporation; and

 

(48)                          “TSX” means the Toronto Stock Exchange.

 

Section 1.2                                   Headings and Table of Contents

 

The inclusion of headings and a table of contents in this Agreement are for convenience of reference only and shall not affect the construction or interpretation hereof.

 

Section 1.3                                   Gender and Number

 

In this Agreement, unless the context otherwise requires, words importing the singular include the plural and vice versa, words importing gender include all genders or the neuter, and words importing the neuter include all genders.

 

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Section 1.4                                   Rules of Construction

 

The Parties to this Agreement waive the application of any law or rule of construction providing that ambiguities in any agreement or other document shall be construed against the Party drafting such agreement or other document.  The word “including” or any variation thereof shall mean (unless the context of its usage otherwise requires) “including, without limitation” and shall not be construed to limit any general statement that such word follows to the specific or similar items or matters immediately following such word.  For purposes of this Agreement, all determinations of the amount of issued and outstanding Shares shall be based on information set forth in the most recent annual or interim management’s discussion and analysis or annual report or quarterly report, and any current report subsequent thereto, filed by the Corporation on SEDAR or with the U.S. Securities and Exchange Commission on EDGAR, respectively, and shall be calculated on a non-diluted basis, excluding any Shares held in Treasury or owned by a Subsidiary of the Corporation and any Shares that are or may be issuable upon the conversion, exercise or exchange of any options or other convertible, exercisable or exchangeable securities.

 

Section 1.5                                   Interpretation

 

Any rights to be exercised hereunder by the Investor are to be exercised solely by the Investor Representative.

 

ARTICLE 2
 NOMINATION RIGHTS

 

Section 2.1                                   Board of Directors

 

Prior to and upon the consummation of the Initial Public Offering, the Corporation shall have a Board consisting of 8 directors (each a “Director” and together, the “Directors”). The initial Directors of the Corporation upon the consummation of the Initial Public Offering shall be Patrick Dovigi, Dino Chiesa, Shahir Guindi, Arun Nayar, Paolo Notarnicola, Ven Poole, Raymond Svider and Blake Sumler.

 

Section 2.2                                   Board Nomination Rights

 

(1)                                 The Investor shall be entitled to designate 10% of the Available Nominees (rounding up to the nearest whole number (e.g., 1 of 8)) for so long as the Investor beneficially owns, directly or indirectly, at least 5% of the issued and outstanding Shares.

 

(2)                                 Any Nomination right set forth in Section 2.2 not held or exercised by the Investor or any Other Investor shall rest with the NGC Committee.

 

(3)                                 In the event that the Investor beneficially owns, directly or indirectly, less than 5% of the issued and outstanding Shares for a continuous 180 day period, the Investor shall notify the Corporation promptly thereof and (a) upon the written request of the Corporation, use reasonable good faith efforts to cause its Nominee(s) to forthwith resign and (b) if no such request is made, the Nominee(s) shall continue until his, her or their term expires at the next Directors Election Meeting or, if earlier, they otherwise resign or cease to be qualified to act as a Director.

 

(4)                                 In the event that the Investor has designated fewer Nominees than the total number of Nominees that the Investor shall be entitled to designate pursuant to Section 2.2, then the Investor shall have the right, at any time, to designate such additional Nominee(s) to which it is entitled, in which case, the Corporation and the Directors shall take all necessary corporate action, to the fullest extent permitted by applicable law, to promptly (a) enable the Investor to designate and effect the election or appointment of such additional individuals and (b) appoint such individual nominated by the Investor to fill any available vacancies, or to the extent not so

 

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permitted, nominate such individual for election as a Director at the next Directors Election Meeting in accordance with Section 2.4.

 

(5)                                 The Investor shall have the right to representation on the board of directors or other similar governing body of any Subsidiary of the Corporation in proportion to its representation on the Board; provided that the Investor shall have such right to representation only if and to the extent that Patrick Dovigi is serving on any such board of directors or other similar governing body.

 

Section 2.3                                   Board Committees

 

(1)                                 Prior to the consummation of the Initial Public Offering, the following standing committees of the Board (each, a “Committee”) shall be established to advise and report to the Board on the matters as are, and to otherwise exercise such power and authority as is, delegated to such Committees by the Board.  Upon the consummation of the Initial Public Offering such committees shall be comprised of the below noted Directors:

 

	
Committee
    	
 
    	
Members
    
	
 
    	
 
    	
 
    
	
Audit Committee
    	
 
    	
Arun Nayar (Chair)
    
	
 
    	
 
    	
Dino Chiesa
    
	
 
    	
 
    	
Shahir Guindi
    
	
 
    	
 
    	
 
    
	
NGC Committee
    	
 
    	
Paolo Notarnicola (Chair)
    
	
 
    	
 
    	
Dino Chiesa
    
	
 
    	
 
    	
Arun Nayar
    

 

(2)                                 All members of the Committees shall be selected by the Board and shall have such qualifications as may be required by applicable law and the rules of any securities exchange on which the Corporation’s shares are listed for trading to serve on such committees.

 

Section 2.4                                   Board Nomination Procedure

 

(1)                                 The Corporation shall notify the Investor Representative (on behalf of the Investor) of its intention to hold a Directors Election Meeting at least 75 days prior to the date of such meeting and shall provide the Investor with such documentation requesting such information regarding such Nominee(s) as required for purposes of completing the Corporation’s management information circular.

 

(2)                                 At least 45 days and no more than 75 days before each Directors Election Meeting, the Investor Representative (on behalf of the Investor), will deliver to the Corporation (c/o the NGC Committee) in writing the name of its Nominee(s) together with the information regarding such Nominee(s)) that the Corporation is required by applicable law to include in a management information circular of the Corporation to be sent to Shareholders in respect of such Directors Election Meeting and such other information, including a biography of such Nominee(s), that is consistent with the information the Corporation intends to publish about management Nominees as Directors of the Corporation in such management information circular as reasonably requested by the Corporation (the “Nomination Letter”).

 

(3)                                 If the Investor Representative (on behalf of its Investor) fails to deliver the Nomination Letter to the Corporation at least 45 days before the Directors Election Meeting, the Investor shall be deemed to have designated the same Nominee that serves as a Director of the Corporation at such time, subject to such individual satisfying the Conditions for re-appointment to the Board.

 

(4)                                 Notwithstanding anything to the contrary in this Agreement, each Nominee of the Investor shall, at all times while serving on the Board, meet the qualification requirements to serve as a

 

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Director under applicable law and the rules of any stock exchange on which the Subordinate Voting Shares are then listed (the “Conditions”).  No Nominee may be a Person who has been convicted of a felony or a Person who is not acceptable to any stock exchange on which the Subordinate Voting Shares are then listed or any securities regulatory authority having jurisdiction over the Corporation.

 

(5)                                 The Nominee(s) of the Investor shall be nominated by or at the direction of the Board or an authorized officer of the Corporation, including pursuant to a notice of meeting, to stand for election to the Board at the Directors Election Meeting.  The Corporation agrees, to the fullest extent permitted by applicable law, to include the individual(s) designated pursuant to Section 2.2 in the slate of Nominees that are proposed for election as Directors by the Corporation, to include such Nominees in a management information circular of the Corporation relating to the election of Directors at a Directors Election Meeting and to support the Nominee(s) for election in a manner no less rigorous and favourable in which the Corporation supports its other Nominees, to recommend such individual to be elected as a Director as provided herein and agrees to use its best efforts to cause the election of each such Nominee(s) to the Board, including nominating each such individual to be elected as a Director as provided herein, recommending such individual’s election and soliciting proxies or consents from Shareholders in favour of the election thereof.

 

(6)                                 The Investor shall, in respect of all Shares that it beneficially owns, directly or indirectly, not vote against or withhold its vote or consent in respect of, or cause to be voted against or cause to be withheld against, any Nominee nominated by any Other Investor under each Other Investor Agreement for election as Directors at each applicable Directors Election Meeting.

 

Section 2.5                                   Reserved

 

Section 2.6                                   Resignation, Death, Incapacity or Disqualification of Director

 

(1)                                 At any time prior to the first Directors Election Meeting, in the event of the resignation, death or incapacity of Ven Poole, or any replacement appointed as a Director pursuant to this Section 2.6(1), or in the event that such Director ceases to satisfy any of the Conditions, the Investor shall be entitled to designate an individual satisfying each of the Conditions to replace such Director to serve on the Board by delivery of a written notice to the Corporation within forty-five (45) days after the Director resigns, dies or becomes incapacitated, or ceases to satisfy any of the Conditions, as applicable, and to the extent permitted by applicable law and the Articles, by-laws, constating documents or other organizational documents, the Board shall promptly appoint such individual as a Director, or to the extent not so permitted, nominate such individual for election as a Director at the next Directors Election Meeting in accordance with Section 2.4.

 

(2)                                 Following the first Directors Election Meeting, in the event of the resignation, death or incapacity of a Nominee that is serving on the Board, or any replacement appointed as a Director pursuant to this Section 2.6(2), or in the event that such Nominee ceases to satisfy any of the Conditions, the Investor shall be entitled to designate an individual satisfying each of the Conditions to replace such Nominee to serve on the Board by delivery of a written notice to the Corporation within forty-five (45) days after the Nominee resigns, dies or becomes incapacitated, or ceases to satisfy any of the Conditions, as applicable, and to the extent permitted by applicable law and the Articles, by-laws, constating documents or other organizational documents, the Board shall promptly appoint such individual as a Director, or to the extent not so permitted, nominate such individual for election as a Director at the next Directors Election Meeting in accordance with Section 2.4.

 

Section 2.7                                   Director Compensation

 

No Nominee who is an officer or employee of the Corporation or a partner, principal, member of, or employee of the Investor or any of its Affiliates will be entitled to any compensation for his or her

 

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service as a Director or on any Committee; provided that the Corporation will pay for, or reimburse the Investor’s Nominee for, out-of-pocket expenses incurred in connection with such Nominee’s service as a Director or as a member of, or observer to, any standing committee of the Board.

 

Section 2.8                                   Chair of the Board

 

The Board shall have a chair (the “Chair”). For so long as Patrick Dovigi is a Director, Mr. Dovigi shall be the Chair. Notwithstanding the foregoing, Mr. Dovigi shall be entitled to resign as the Chair at any time. Upon Mr. Dovigi ceasing to be a Director, or in the event that Mr. Dovigi does not wish to be the Chair, then the Chair shall be appointed by the Board.

 

Section 2.9                                   Lead Director

 

So long as the Chair is not an Independent Director, the Board shall have a lead director (the “Lead Director”). The Lead Director shall be an Independent Director and shall be appointed and replaced from time to time by a majority of the Independent Directors of the Board. The initial Lead Director shall be Dino Chiesa.

 

Section 2.10                            Permitted Disclosure

 

Any Director shall be permitted to disclose to GIC (Ventures) Pte Ltd. and its Affiliates information about the Corporation and its Affiliates that he or she receives as a result of being a Director, subject to his or her fiduciary duties under applicable law; provided that, the recipient of such disclosure is directed to keep confidential and not disclose any Confidential Information, in each case, in accordance with the terms of this Agreement and acknowledges that applicable securities laws may prohibit a person who has material, non-public information regarding the Corporation or its securities from trading such securities.

 

ARTICLE 3
 INFORMATION RIGHTS

 

Section 3.1                                   Information Rights

 

For so long as the Investor is entitled to nominate for election as Directors the Nominees pursuant to Section 2.2, the Investor (represented by no more than four Representatives, except as management of the Corporation may permit additional Representatives at its sole discretion) shall be entitled to reasonable access to the books, records, material contracts, properties, employees and management of the Corporation and its Subsidiaries during normal business hours, upon reasonable notice and without causing undue disruption or requiring management to prepare any documentation or analysis, to the extent that such preparation would be unduly burdensome, in addition to its ordinary course duties, in connection with a legitimate business purpose of the Investor, including the monitoring of its investment in the Corporation (and not in connection with any litigation or other proceeding against the Corporation or its Subsidiaries or another Shareholder; provided that, for the avoidance of doubt, this parenthetical shall not impact any right to obtain discovery in any litigation or other proceeding or other rights to obtain such information under applicable law).

 

Section 3.2                                   Certain Reports

 

For so long as the Investor is entitled to nominate for election as Directors the Nominees pursuant to Section 2.2, the Investor shall be entitled to receive from the Corporation (1) as soon as practicable after the end of each month, monthly reports (including financial statements and management financial accounts) with respect to the business, operations and financial performance of the Corporation and (2) upon the Investor’s request, comparisons of the financial results of the Corporation and its Subsidiaries against the annual budget.

 

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Section 3.3                                   Confidentiality

 

The Investor agrees that it shall, and shall direct its Representatives to, keep confidential and not disclose any Confidential Information; provided that the Investor and its Representatives may disclose Confidential Information to the Other Investors and to (1) the Investor’s and its Affiliates’ attorneys, accountants, consultants, insurers, financing sources and other advisors in connection with the Investor’s investment in the Corporation or in the ordinary course of business, (2) any Person, including a prospective purchaser of Shares, which has agreed to maintain the confidentiality of such Confidential Information (the Persons referenced in the foregoing clauses (1) and (2), collectively, the “Representatives”) or (3) any Person with respect to which the Corporation has provided its prior written consent to the Investor’s disclosure of Confidential Information.  The Investor acknowledges that applicable securities laws may prohibit a person who has material, non-public information regarding the Corporation or its securities from trading such securities.

 

ARTICLE 4
 INVESTOR REPRESENTATIVE

 

Section 4.1                                   Investor Representative

 

(1)                                 The Investor appoints · as its representative (together with any other representative appointed in accordance with the provisions of this Agreement, the “Investor Representative”) in its name and on its behalf:

 

(a)                                 with respect to all matters relating to this Agreement, including exercising any rights of the Investor under this Agreement, executing and delivering any amendment, restatement, supplement or modification to or of this Agreement and any waiver of any claim or right arising out of this Agreement; and

 

(b)                                 in general, to do all other things and to perform all other acts, including executing and delivering all agreements, certificates, receipts, instructions, and other instruments, contemplated by, or deemed advisable in connection with, this Agreement.

 

(2)                                 The Investor grants · a power of attorney constituting · with full power of substitution, as its true and lawful attorney to act on behalf of the Investor with full power and authority in its name, place and stead, and to execute, under seal or otherwise, swear to, acknowledge, deliver, make or file or record when, as and where required, any instrument, deed, resolution, agreement or document in connection with carrying out the activities of the Corporation.

 

(3)                                 The Corporation will be entitled to rely upon any document or other instrument delivered by the Investor Representative as being authorized or directed to be delivered by the Investors, and the Corporation not be liable to the Investor for any action taken or omitted to be taken by the Corporation based on such reliance.

 

(4)                                 The Investor shall be entitled to replace the Investor Representative from time to time by delivering a written notice to the Corporation signed by the Investor that is then a Party to this Agreement.

 

ARTICLE 5
 REPRESENTATIONS AND WARRANTIES

 

Section 5.1                                   Representations and Warranties by the Parties to this Agreement

 

Each Party represents and warrants that:

 

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(1)                                 If not an individual, it is duly formed and organized and validly existing under the laws of its jurisdiction of formation and that it has the organizational power and capacity to own its assets and to enter into and perform its obligations under this Agreement;

 

(2)                                 this Agreement has been duly authorized by such Party, and duly executed and delivered by it and, assuming the due authorization, and due execution and delivery, by the other Party hereto, constitutes a legal, valid and binding obligation enforceable against such Party in accordance with its terms, subject to the usual exceptions as to bankruptcy and the availability of equitable remedies; and

 

(3)                                 the execution, delivery and performance of this Agreement does not and will not contravene the provisions of its articles, by-laws, constating documents or other organizational documents or the documents by which it was created or established or the provisions of any indenture, agreement or other instrument to which he or she or it is a party or by which he or she or it may be bound.

 

ARTICLE 6
 MATTERS RELATING TO PRE-EMPTIVE RIGHTS

 

Section 6.1                                   Pre-Emptive Right

 

(1)                                 For so long as the Investor beneficially owns, directly or indirectly, at least 7.5% of the issued and outstanding Shares, in the event  of any distribution or issuance, including by way of a share dividend, of voting shares (the “Preemptive Voting Shares”) of the Corporation (a “Distribution”) or of securities convertible, exercisable or exchangeable into Preemptive Voting Shares or giving the right to acquire shares that would constitute Preemptive Voting Shares (the “Convertible Securities” and, together with the Preemptive Voting Shares, the “Distributed Securities”), other than an Exempt Distribution (as defined below), the Corporation shall issue to the Investor rights to subscribe for that number of Subordinate Voting Shares or, as the case may be, for securities convertible, exercisable or exchangeable into or giving the right to acquire, on the same terms and conditions, including as to subscription or exercise price, as applicable, mutatis mutandis, as applicable to the Convertible Securities, that number of Subordinate Voting Shares, in each case, which would permit the Investor to subscribe for and acquire such number of Subordinate Voting Shares (or Convertible Securities, as applicable) that, assuming the conversion, exercise or exchange thereof, if applicable, would result in the Investor beneficially owning, directly or indirectly, the same aggregate percentage of Shares (relative to all Shareholders) as it beneficially owned, directly or indirectly, immediately prior to such Distribution (the “Rights to Subscribe”).

 

(2)                                 The rights of the Investor under Section 6.1(1) will not apply, and the Corporation will not issue any Rights to Subscribe, in the following circumstances (each, an “Exempt Distribution”): (i) in connection with the automatic conversion of Multiple Voting Shares outstanding on the date of the initial public offering or issued thereafter in compliance with Section 6.1(1), in each case, pursuant to the Articles; (ii) in respect of the exercise of Convertible Securities issued to directors or employees of the Corporation under the Corporation’s ordinary course security-based compensation arrangements; (iii) in connection with a subdivision of then-outstanding Subordinate Voting Shares into a greater number of Subordinate Voting Shares, on a proportionate basis to all Shareholders, provided that an equivalent change is made to the Multiple Voting Shares; (iv) upon the exercise by a holder of a conversion, exchange or other similar privilege pursuant to the terms of a security in respect of which the Investor did not exercise, failed to exercise, or waived its rights under Section 6.1(1) or which was issued in a transaction that would otherwise constitute an Exempt Distribution under this Section 6.1(2); (v) pursuant to a shareholders’ rights plan of the Corporation, if any; (vi) to any wholly owned Subsidiary of the Corporation; (vii) in connection with the issuance of Subordinate Voting Shares upon the exercise by the underwriters in connection with the initial public offering of the Corporation of their over-allotment or “greenshoe” option to purchase additional Subordinate

 

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Voting Shares; and (viii) shares issued in connection with any direct or indirect acquisitions or business combination transactions involving the Corporation or its Subsidiaries as consideration to the former shareholders or sellers of the acquired business or to the management of the acquired business, in each case of the foregoing clauses (ii), (iii), (v), (vi), (vii) or (viii), which have been approved by the Board.

 

(3)                                 The Rights to Subscribe shall be issued concurrently with the completion of the Distribution of the applicable Distributed Securities. To the extent that any such Rights to Subscribe are exercised, in whole or in part, the securities underlying such Rights to Subscribe (the “Subscription Securities”) shall be issued and must be paid for substantially concurrently with the completion of the Distribution and payment to the Corporation of the issue price for the Distributed Securities, at the lowest price permitted by the applicable securities and stock exchange regulations and subject (as to such price) to the prior consent of the exchanges but at a price not lower than (i) if the Distributed Securities are Subordinate Voting Shares, the price at which Subordinate Voting Shares are then being distributed or issued in the Distribution (excluding, for greater certainty, underwriting commissions and discounts and other transaction expenses paid by the Corporation), (ii) if the Distributed Securities are Convertible Securities, the price at which the applicable Convertible Securities are then being distributed or issued; and (iii) if the Distributed Securities are Voting Shares other than Subordinate Voting Shares, the higher of (a) the weighted average price of the transactions on the Subordinate Voting Shares on the TSX (or such other primary stock exchange on which they are listed, as the case may be) for the 20 trading days preceding the Distribution of such Voting Shares or of (b) the weighted average price of transactions on the Subordinate Voting Shares on the TSX (or such other primary stock exchange on which they are listed, as the case may be), the trading day before the Distribution of such Voting Shares.

 

(4)                                 At least fifteen (15) Business Days prior to the closing of any proposed Distribution, the Corporation shall deliver to the Investor Representative a notice in writing offering the Investor the opportunity to subscribe for the applicable Subscription Securities pursuant to the rights to subscribe. The offer will contain a description of the terms and conditions relating to the Distributed Securities and the Subscription Securities and will, to the extent known, state the price at which the Distributed Securities and the Subscription Securities will be distributed and the date on which the issuance of Distributed Securities is to be completed and will state that the Investor, if it wishes to exercise its rights to subscribe and subscribe for Subscription Securities, may do so only by giving written notice of the exercise of the subscription right granted hereby to the Corporation within ten (10) Business Days after the date of delivery of the notice regarding the offer, provided that if the Corporation receives a Bought Deal relating to such Distribution, the Investor shall have not less than 24 hours from the time the Corporation advises it of such Bought Deal to provide the written notice to the Corporation specified in this Section 6.1(4). The Investor will be entitled to participate in the issuance of the Distributed Securities in accordance with Section 6.1(1).

 

(5)                                 If the Corporation proposes to grant an option or other right for the purchase of or subscription for Distributed Securities (other than options or other convertible, exercisable or exchangeable securities issued to directors, employees or consultants of the Corporation under compensatory plans of the Corporation which are approved by the Board), such option or other right will also be made available to the Investor as nearly as may be possible in accordance with the foregoing.

 

(6)                                 The right to receive Rights to Subscribe and the legal or beneficial ownership of the Rights to Subscribe, may be assigned in whole or in part among the Affiliated Transferees, provided that written notice of any such assignment shall be sent promptly to the Corporation.

 

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ARTICLE 7
 GENERAL PROVISIONS

 

Section 7.1                                   All Shares Subject to this Agreement

 

The Investor agrees that it shall be bound by the terms of this Agreement with respect to all Shares held by him, her or it from time to time.

 

Section 7.2                                   Reserved

 

Section 7.3                                   Affiliated Transferees Agreement to be Bound

 

Each Affiliated Transferee who becomes a Shareholder must concurrently with becoming a Shareholder execute and deliver to the Corporation a counterpart copy of this Agreement or a written agreement substantially in form attached as Exhibit A hereto, agreeing to be bound by this Agreement.

 

Section 7.4                                   Articles

 

In the event of any conflict or inconsistency between the terms of this Agreement and the Articles, by-laws, constating documents or other organizational documents, as may be amended from time to time, the terms of this Agreement shall prevail.

 

Section 7.5                                   Term

 

This Agreement shall come into force and effect immediately prior to the Initial Public Offering on the date set out on the first page of this Agreement and, except as provided below, shall continue in force until the earlier of:

 

(1)                                 the date on which the Investor ceases to have any right to designate any Nominee under this Agreement pursuant to the terms of Section 2.2;

 

(2)                                 the date on which this Agreement is terminated by the mutual consent of the Parties; or

 

(3)                                 the dissolution or liquidation of the Corporation.

 

Notwithstanding the foregoing, the provisions of Article 7 shall continue in force in accordance with their terms after the termination of this Agreement.

 

Section 7.6                                   Injunctive Relief

 

Each Party acknowledges that a breach or threatened breach by a Party of any provision of this Agreement will result in the other Party suffering irreparable harm which cannot be calculated or fully or adequately compensated by recovery of damages alone. Accordingly, each Party agrees that the other Party shall be entitled to interim and permanent injunctive relief, specific performance and other equitable remedies, in addition to any other relief to which the Corporation or the Investor may become entitled.

 

Section 7.7                                   Notices

 

Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be given by prepaid mail, by electronic mail or by delivery as hereafter provided. Any such notice or other communication, if mailed by prepaid mail at any time other than during a general discontinuance of postal service due to strike, lockout or otherwise, shall be deemed to have been received on the fourth Business Day after the post-marked date thereof, or if sent by electronic mail, shall be deemed to have been received when sent unless the sender receives a “bounceback” or similar

 

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indication that the email was not delivered to the recipient, or if delivered by hand shall be deemed to have been received at the time it is delivered to the applicable address noted below either to the individual designated below or to an individual at such address having apparent authority to accept deliveries on behalf of the addressee. Notice of change of address shall also be governed by this Section 7.7. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand or sent by electronic mail and shall be deemed to have been received in accordance with this Section 7.7. Notices and other communications shall be addressed as follows:

 

(a)                                 if to the Investor Representative or the Investor:

 

168 Robinson Road

#37-01 Capital Tower

Singapore 068912

Singapore

 

with a copy (which shall not constitute notice) to:

 

Ropes & Gray LLP

1211 Avenue of the Americas

New York, New York 10036-8704

Attention:                                         Anthony J. Norris

Email:                                                            anthony.norris@ropesgray.com

 

(b)                                 if to the Corporation:

 

100 New Park Place Suite 500

Vaughan, Ontario L4J 0H9

Attention:                                         Mindy Gilbert

Email:                                                            mgilbert@gflenv.com

 

with a copy (which shall not constitute notice) to:

 

Stikeman Elliott LLP

 

5300 Commerce Court West

Toronto, ON M5L 1B9

Attention:                                         Jeffrey M. Singer

Email:                                                            jsinger@stikeman.com

 

The failure to send or deliver a copy of a notice or other communication to the referred to counsel, as the case may be, shall not invalidate any notice given under this Section 7.7.

 

Section 7.8                                   Time of Essence

 

Time is of the essence in the performance of this Agreement.

 

Section 7.9                                   Time Periods

 

Unless otherwise specified, time periods within or following which any payment is to be made or act is to be done shall be calculated by excluding the day on which the period commences and including the day on which the period ends and by extending the period to the Business Day immediately following if the last day of the period is not a Business Day.

 

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Section 7.10                            Further Assurances

 

Each Party shall use reasonable efforts to take all such steps, execute all such documents and do all such acts and things as may be reasonably within its power to implement to their full extent the provisions of this Agreement and to cause the Corporation to act in the manner contemplated by this Agreement.

 

Section 7.11                            Independent Legal Advice

 

The Parties acknowledge that they have entered into this Agreement willingly with full knowledge of the obligations imposed by the terms of this Agreement. Further, the Parties acknowledge that they have been afforded the opportunity to obtain independent legal advice and confirm by the execution of this Agreement that they have either done so or waived their right to do so, and agree that this Agreement constitutes a binding legal obligation and that they are estopped from raising any claim on the basis that they have not obtained such advice.

 

Section 7.12                            Assignment

 

Except as may be expressly provided in this Agreement, none of the Parties may assign its rights or obligations under this Agreement without the prior written consent of the other Party; provided that, subject to Section 7.3, the Investor may assign its rights and obligations under this Agreement to an Affiliated Transferee in connection with the transfer of any Shares to such Affiliate Transferee. Nothing in this Agreement shall prohibit any assignment by operation of law (including by way of amalgamation, merger or other business combination). The Corporation will not agree to an assignment by any Other Investor of its rights or obligations under any Other Investor Rights Agreement without the prior written consents of the Investor.

 

Section 7.13                            Waiver, Amendment

 

No waiver of any of the provisions of this Agreement will constitute a waiver of any other provision (whether or not similar). No waiver will be binding unless executed in writing by the Party to be bound by the waiver. A Party’s failure or delay in exercising any right under this Agreement will not operate as a waiver of that right. A single or partial exercise of any right will not preclude a Party from any other or further exercise of that right or the exercise of any other right. This Agreement may only be amended, supplemented or otherwise modified by written agreement signed by the Parties. The Corporation will not agree to any waiver, amendment, supplement or other modification of any Other Investor Rights Agreement without the prior written consents of the Investor.

 

Section 7.14                            Entire Agreement

 

This Agreement constitutes the entire agreement between the Parties with respect to the matters contemplated by this Agreement and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the Parties related to such matters.  There are no representations, warranties, covenants, conditions or other agreements, express or implied, collateral, statutory or otherwise, between the Parties in connection with the subject matter of this Agreement, except as specifically set forth in this Agreement.  The Parties have not relied and are not relying on any other information, discussion or understanding in entering into this Agreement.

 

Section 7.15                            Successors and Assigns

 

This Agreement becomes effective only when executed by the Parties. After that time, it is binding on and enures to the benefit of the Parties and their respective heirs, administrators, executors, legal representatives, successors and permitted assigns.

 

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Section 7.16                            Severability

 

It is the desire and intent of the Parties that the provisions of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.  Accordingly, the invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if the invalid or unenforceable provision were omitted.  Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so more narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

 

Section 7.17                            Governing Law; Consent to Jurisdiction; WAIVER OF JURY TRIAL

 

This Agreement is governed by and will be interpreted and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.  Any action arising out of or under this Agreement, any other document, instrument or agreement contemplated herein or delivered pursuant hereto, or the transactions contemplated hereby or any of such other documents, instruments or agreements, shall be brought only in a federal or provincial court having jurisdiction and venue in Ontario, Canada, and each of the parties hereby irrevocably submits to the exclusive jurisdiction of such courts and agrees that venue in Ontario is proper.  To the extent permitted by applicable law, final judgment against a Party (a certified copy of which shall be conclusive evidence of the fact and of the amount of any indebtedness of such Party hereunder) in any such legal action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on an unsatisfied judgment or similar proceeding.  Each of the Parties hereby irrevocably waives and agrees not to assert, by way of motion, as a defense, or otherwise, in any legal action or proceeding, any defense or any Claim that it is not personally subject to the jurisdiction of the above-named Ontario courts for any reason, including claims that such Party may be immune from the above-described legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, or otherwise), or that such proceeding is brought in an inconvenient or otherwise improper forum or that this Agreement or any of the other aforementioned documents, instruments or agreements, or the subject matter hereof or thereof, may not be enforced in or by such courts, or that the same are governed by the laws of a jurisdiction other than Ontario.  TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, EACH PARTY HERETO HEREBY WAIVES AND COVENANTS THAT IT SHALL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE OR ACTION, CLAIM, CAUSE OF ACTION OR SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY, PROCEEDING OR INVESTIGATION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER HEREOF OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE TRANSACTIONS CONTEMPLATED HEREBY, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING.  EACH PARTY HERETO ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTIES HERETO THAT THIS Section 7.17 CONSTITUTES A MATERIAL INDUCEMENT UPON WHICH THEY ARE RELYING AND SHALL RELY IN ENTERING INTO THIS AGREEMENT.  ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS Section 7.17 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

 

Section 7.18                            Counterparts

 

This Agreement may be executed in any number of counterparts and/or by electronic means, each of which shall be deemed an original but all of which together shall constitute one and the same instrument, and all signatures need not appear on any one counterpart.

 

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Section 7.19                            No Recourse

 

Notwithstanding anything to the contrary set forth in this Agreement, the Corporation and the Investor each acknowledges, covenants and agrees, on behalf of itself and any Person claiming by, through or on behalf of it, that all claims, obligations, liabilities, causes of action, actions or proceedings (in each case, whether in contract or in tort, at law or in equity, or pursuant to statute or otherwise) that may be based upon, in respect of, arise under, out or by reason of, be connected with, or relate in any manner to this Agreement, or the negotiation, execution, performance, or breach (whether willful, intentional, unintentional or otherwise) of this Agreement, including any representation or warranty made or alleged to be made in, in connection with, or an as inducement to, this Agreement (each of such above-described legal, equitable or other theories or sources of liability, a “Claim”) may be made or asserted only against (and are expressly limited to) the Corporation and the Investor expressly identified in the preamble to and signature page(s) of this Agreement and/or any Person that delivers a counterpart copy of this Agreement or a written agreement substantially in form attached as Exhibit A hereto from time to time, agreeing to be bound by this Agreement.  No Person who is not the Corporation or the Investor (or party joined to this Agreement) (including (1) any past, present or future direct or indirect director, officer, employee, incorporator, member, partner, manager, management company, equityholder, Affiliate, agent, attorney, or Representative of, and any past, present or future financial advisor or lender to (all above-described Persons in this subclause (1), collectively “Affiliated Persons”) the Corporation or such Investor, as applicable, and (2) any Affiliated Persons of such Affiliated Persons) shall have any liability or obligation whatsoever in respect of, based upon or arising out of any Claims.

 

Section 7.20                            Corporate Opportunity

 

The Corporation expressly acknowledges and agrees, to the fullest extent permitted by applicable law, that (1) the Investor and (a) its Affiliates, (b) the managers, directors, officers and employees of the Investor and its Affiliates (not including the Corporation and its Subsidiaries), (c) any Portfolio Company of the Investor and its Affiliates and (d) the Investor’s and its Affiliates’ respective limited partners, non-managing members or other similar direct or indirect investors or beneficiaries (the Persons described in the foregoing clauses (a) through (d), collectively, the “Investor Affiliated Persons”) have the right to, directly or indirectly, engage in and possess interests in other business ventures of every type and description, including those engaged in the same or similar business activities or lines of business as the Corporation or any of its Subsidiaries or deemed to be competing with the Corporation or any of its Subsidiaries, on its own account, or in partnership with, or as an employee, officer, director or shareholder of any other Person, with no obligation to communicate, present or offer to the Corporation or any of its Subsidiaries or any equityholders or directors or managers of the Corporation or any of its Subsidiaries (or their respective Affiliates) the right to participate therein; (2) the Investor and/or the Investor Affiliated Persons may invest in, provide services to or otherwise do business with any client, customer or vendor of the Corporation or any of its Subsidiaries or any Person that directly or indirectly competes with the Corporation or any of its Subsidiaries (including, in each of the foregoing clauses (1) and (2), any such matters or transactions that may constitute a Corporate Opportunity (as defined below)); and (3) neither the Investor nor any Investor Affiliated Persons shall be deemed to have breached any duty (fiduciary, contractual or otherwise), if any, to the Corporation or any of its Subsidiaries or any Other Investor or other equityholder, director, officer, employee or manager of the Corporation or any of its Subsidiaries (or their respective Affiliates), as the case may be, by engaging in any such activities or entering into any such transactions.  The Corporation and its Subsidiaries shall have no interest or expectation in, nor right to be informed of, any potential transaction or matter which may be an investment or business opportunity or prospective economic or competitive advantage in which the Corporation or any of its Subsidiaries could have an interest or expectancy (each, a “Corporate Opportunity”), and in the event that the Investor or any Investor Affiliated Person acquires knowledge of a potential transaction or matter which may be a Corporate Opportunity, such Person shall have no duty (fiduciary, contractual or otherwise) to communicate, offer or present such Corporate Opportunity to the Corporation or any of its Subsidiaries or any Other Investor or other equityholder, director, officer, employee or manager of the Corporation or any of its Subsidiaries (or their respective Affiliates), as the case may be.  None

 

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of the Investor nor any Investor Affiliated Persons shall be liable to the Corporation or any of its Subsidiaries or any Other Investor or other equityholder, director, officer, employee or manager of the Corporation or any of its Subsidiaries (or their respective Affiliates), as the case may be, for breach of any duty (fiduciary, contractual or otherwise) by reason of the fact that such Person, directly or indirectly, pursues or acquires any such Corporate Opportunity for itself, directs such Corporate Opportunity to another Person or does not communicate, offer or present such Corporate Opportunity to the Corporation or any of its Subsidiaries or any Other Investor or other equityholder, director, officer, employee or manager of the Corporation or any of its Subsidiaries (or their respective Affiliates), as the case may be.  This Section 7.20 shall be construed to disclaim and renounce to the fullest extent permitted by law any right of the Corporation or any Subsidiary or any equityholders of the Corporation or any of its Subsidiaries or any Other Investor or other equityholder, director, officer, employee or manager of the Corporation or any of its Subsidiaries (or their respective Affiliates) with respect to the matters set forth herein.  This Section 7.20 shall be construed to effect such disclaimer and renunciation to the full extent permitted by law.

 

Section 7.21                            Margin Loan Matters

 

(1)                                 The Corporation acknowledges and agrees that, with respect to any Shares pledged by the Investor to any applicable lender under the Margin Loan Documentation (each, an “Applicable Lender”) and registered on the books and records of the Corporation’s transfer agent in the name of such Applicable Lender as provided under the Margin Loan Documentation (any such shares, “Pledged Shares”), except to the extent of any transfer of any such Pledged Shares pursuant to an exercise by an Applicable Lender of its remedies under the Margin Loan Documentation following an event of default thereunder, the Investor (a) is, as of the date hereof, and shall continue to be, bound by, subject to the terms and conditions of and entitled to (in lieu of the relevant Applicable Lender) exercise all rights and remedies under, this Agreement in respect of such Pledged Shares, including being considered as a “Shareholder” and the “Investor” hereunder, in each case, as if the Investor was the registered holder of such Pledged Shares and (b) shall be deemed to beneficially own, directly or indirectly, such Pledged Shares for all purposes hereunder.

 

(2)                                 For all purposes under this Agreement, for so long as GFL Borrower II (Cayman) LP (the “GIC Margin Loan Borrower”) directly holds any Shares which constitute Pledged Shares hereunder, (a) the GIC Margin Loan Borrower shall be deemed to be the “Investor,” an “Affiliate” of the Investor and/or an “Affiliated Transferee” of the Investor hereunder (but, for the avoidance of doubt, neither BC Partners Advisors L.P. nor any of its Affiliates (other than the GIC Margin Loan Borrower) shall be deemed to be the “Investor,” an “Affiliate” of the Investor or an “Affiliated Transferee” of the Investor hereunder) and (b) the Investor shall be deemed to beneficially own, directly or indirectly, the Pledged Shares which are directly held by GIC Margin Loan Borrower.

 

[Remainder of page intentionally left blank]

 

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IN WITNESS WHEREOF, the parties have executed and delivered this Agreement on the date specified above.

 

	
 
    	
GFL   ENVIRONMENTAL INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

[Signature Page to Investor Rights Agreement]

 

 

	
 
    	
MAGNY   COURS INVESTMENT PTE LTD.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

	
 
    	
 
    
	
 
    	
GFL BORROWER II (CAYMAN) LP,   acting by its general partner GFL Borrower   II GP (Cayman), Ltd
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

[Signature Page to Investor Rights Agreement]Exhibit 10.14

 

CONFIDENTIAL EMPLOYMENT AGREEMENT

 

This CONFIDENTIAL EMPLOYMENT AGREEMENT (“Agreement”), dated as of, · is entered into between GFL ENVIRONMENTAL INC. (the “Company”), and PATRICK DOVIGI (the “Executive”).

 

WHEREAS, the Company is in the business of the provision of environmental services, including solid waste, infrastructure and soil remediation and liquid waste management services;

 

WHEREAS, the Executive is currently employed as President and Chief Executive Officer of the Company;

 

WHEREAS, the Company and the Executive are parties to a confidential employment agreement dated November 14, 2014 and an amending agreement dated December 31, 2015; and

 

WHEREAS, the Company and the Executive wish to amend those terms as reflected in the current written agreement, effective and conditional on the closing of the Company’s initial public offering of subordinate voting shares and concurrent listing on the New York Stock Exchange and Toronto Stock Exchange (the “IPO”) and such date, the “Effective Date”), which will supersede and replace the prior employment agreement in its entirety; provided, that should the closing of the IPO fail to occur for any reason, this Agreement shall become null and void and have no effect, and any and all rights and obligations of the parties hereunder shall automatically terminate.

 

IT IS THEREFORE AGREED AS FOLLOWS:

 

ARTICLE 1
 EMPLOYMENT DUTIES AND ACCEPTANCE

 

Section 1.1                                   Employment by the Company

 

The Company shall employ the Executive, for itself and its subsidiaries and affiliates, to render exclusive and full-time services in the capacity of President and Chief Executive Officer of the Company, reporting to the Board of Directors of the Company, all in accordance with the terms contained in this Agreement.

 

Section 1.2                                   Duties and Responsibilities

 

The Executive shall have duties and responsibilities consistent with the title of President and Chief Executive Officer, subject to the oversight and direction by the Board of Directors of the Company. The Executive shall devote all of the Executive’s working time and best efforts to the business and affairs of the Company. The Executive shall not, without the prior approval of the Board of Directors of the Company, whether for compensation or otherwise, directly or  indirectly, alone or as a member of any partnership or other organization, be actively engaged in or concerned with any other business duties or personal pursuits which interfere with the performance of the Executive’s responsibilities under this Agreement.

 

 

Section 1.3                                   Acceptance of Employment by the Executive

 

The Executive accepts such employment and shall render the services described above. Subject to appointment by the Company’s Board of Directors as such, and upon acceptance by the Executive, the Executive may also serve as an officer of any other entity controlled by the Company, and as a director of the Company and of any other entity controlled by or under common control with the Company, in each case without any compensation therefor other than that specified in this Agreement.

 

Section 1.4                                   Place of Employment

 

The Executive’s principal place of employment shall be the Company’s offices in Vaughan, Ontario, subject to such reasonable travel as the rendering of the services hereunder may require. The Company shall not relocate the Company’s current offices in Vaughan, Ontario, nor can it relocate the Executive’s primary place of work from Vaughan, Ontario, without the Executive’s prior written consent.  As the President and Chief Executive Officer of the Company, it is understood that the Executive retains absolute discretion regarding the location from which he will discharge his duties, be it while travelling on Company business, in person at the Company’s offices in Vaughan, Ontario or remotely.

 

ARTICLE 2
 TERM OF EMPLOYMENT

 

The stated term of employment under this Agreement shall commence on the Effective Date and shall continue for an indefinite period, unless earlier terminated in accordance with Article 5 of this Agreement (the “Term”); provided, however, that the Company acknowledges and agrees that the Executive’s employment with the Company commenced December 24, 2007 and such years of service shall be and are recognized for all purposes.

 

ARTICLE 3
 COMPENSATION

 

Section 3.1                                   Salary

 

As compensation for all services to be rendered pursuant to this Agreement, the Company shall pay the Executive an initial annualized salary of $1,250,000, payable not less frequently than monthly (the “Base Salary”). On or about January 1 of each year of the Term, the Executive’s Base Salary will be increased for inflation (based on the Consumer Price Index) and the Board of Directors shall review the Executive’s performance and make any additional increases to the Executive’s Base Salary as it deems appropriate in its sole discretion. The Executive’s Base Salary shall not be decreased during the Term.

 

Section 3.2                                   Annual Cash Bonus

 

The Executive will be eligible to earn an annual cash bonus (the “Bonus”) in respect of each fiscal year of the Company, with a target of 150% of Base Salary, and such target may be increased to a maximum of 200% of Base Salary, at the sole discretion of the Company’s Board of Directors. The actual Bonus amount, if any, will be based upon the achievement of applicable performance targets established by the Company’s Board of Directors and will be payable in cash at the same time annual bonuses are

 

2

 

generally payable to other senior executives of the Company, subject to the Executive’s continued employment through the applicable payment date (unless provided otherwise in Article 5, including the Executive’s entitlement to the Accrued Obligations).

 

Section 3.3                                   Retention Bonus

 

The Executive will be eligible to earn a retention bonus of $1,500,000 for each completed six (6) month period of employment from the Effective Date to the forty-second (42nd) month following the Effective Date (the “Retention Bonus”).   Should the Executive remain actively employed as of the forty-second (42nd)  month following the Effective Date (and for clarity, “actively employed” does not include a period of notice or payment in lieu of notice pursuant to Article 5 of this Agreement), thereafter the Retention Bonus amount shall increase to $4,500,000 for each completed six (6) month period of employment until the fifth (5th) anniversary of the Effective Date. The Retention Bonus shall be payable semi-annually in arrears, at a time to be determined by the Company, subject to the Executive’s continued employment through the applicable payment date (unless provided otherwise in Article 5, including the Executive’s entitlement to the Accrued Obligations).

 

The Executive’s eligibility for a Retention Bonus shall cease upon the earlier of: (i) the first day following the fifth anniversary of the Effective Date, or (ii) the termination of the Executive’s employment with the Company, for any reason.  In order to receive a Retention Bonus, the Executive cannot have, as of the applicable payment date: (x) resigned or notified the Company of the resignation of his employment with the Company; or (y) been terminated for Cause.  For certainty, if the Executive’s employment is terminated without Cause, the Executive shall be paid the outstanding portion of the $24,000,000 aggregate Retention Bonus, within sixty (60) days of the termination date.

 

Section 3.4                                   Participation in Employee Benefit Plans

 

The Executive shall continue to participate on the same terms in any group life, medical insurance plan, retirement plan, long and short term disability plans or similar employee benefit plan of the Company that is available generally to other senior executives and managers of the Company, under the terms of such plan in effect from time to time, and other medical, dental or other types of benefits required by the Executive to maintain his health and viability as a key employee of the Company (collectively, the “Benefit Plans”). The Company may amend or terminate its Benefit Plans at any time in its discretion by providing notice in accordance with applicable law.

 

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Section 3.5                                   Participation in Long Term Incentive Plan

 

The Executive will be eligible to participate in the Company’s omnibus long term incentive plan (the “LTIP”) in accordance with its terms.  Grants pursuant to the LTIP shall be made via  separate agreement, and an award in one year does not guarantee that an award will be made in a subsequent year.

 

Section 3.6                                   Expenses

 

Subject to policies applicable to senior executives of the Company generally, as may from time to time be established by the Board of Directors, the Company shall pay or reimburse the Executive for reasonable travel, entertainment and other business expenses actually incurred or paid by the Executive during the Term in the performance of the Executive’s services under this Agreement, and which expenses are consistent with the Company’s policies in effect from time to time with respect to such travel, entertainment and other business expenses, upon presentation of expense statements or vouchers or such other supporting information as it may require.

 

Section 3.7                                   Vacation

 

The Executive shall be entitled to four weeks of vacation annually, subject to accrual in accordance with the Company’s vacation policy.

 

Section 3.8                                   Car Allowance

 

The Executive shall be entitled to the use of an automobile, provided that the total cost (inclusive of all taxes, levies, delivery charges and operating and other expenses) to the Company for the acquisition and the Executive’s operation of such automobile shall not exceed $125,000 per annum, with a new automobile being provided every 12 months during the Term and the Company receiving the benefit of any trade-in. As a condition to the reimbursement of such expenses, the Executive shall provide the Company with receipts for expenses incurred. The Executive agrees that he shall operate the automobile in accordance with the terms of any applicable insurance policy in force from time to time.

 

Section 3.9                                   Corporate Plane

 

As the Company’s most senior and strategic officer and an integral part of the Company’s business, the Company wishes to ensure the Executive’s safe and efficient air travel. Accordingly, the Executive agrees that he shall employ the Company’s corporate plane or, if not available, alternate similar private charter jet airways for all travel; it being understood that in fulfilling his obligations hereunder the Executive may permit members of his family or other third parties to accompany him. As an essential executive of the Company, these same considerations of safety and efficiency apply to the Executive’s personal travel.  Accordingly, the Executive shall use the Company’s corporate plane or a private charter jet for travel for personal purposes. As the Company uses its plane or charters jets primarily for business purposes, the value to the Executive of such personal use shall be considered to be the incremental variable costs to the Company associated with such personal use, such as fuel, crew travel expenses, on-board catering, landing fees and trip-related hangar/parking charges and

 

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shall not be considered to include any fixed costs of ownership or operation such as pilot salaries, purchase costs and non-trip related maintenance.

 

ARTICLE 4
 EXECUTION OF CONFIDENTIALITY, NON-COMPETITION AND WORK PRODUCT ASSIGNMENT AGREEMENT

 

As a condition of employment with the Company, the Executive shall execute and comply with the Confidentiality, Non-Competition and Work Product Agreement, attached hereto as Exhibit “A” and incorporated by reference in its entirety into this Agreement. For the avoidance of doubt the Confidentiality, Non-Competition and Work Product Assignment Agreement (Exhibit “A”) to this Agreement) shall survive the termination of this Agreement, including in the event of the termination of the Executive’s employment for any reason.

 

ARTICLE 5
 TERMINATION

 

Section 5.1                                   Termination for Cause

 

The Company may at any time by written notice to the Executive terminate the Executive’s employment for Cause (as defined below) and the Executive shall be entitled only to receive the Accrued Obligations (as defined below) payable through the date of termination; provided that for purposes of this Section 5.1 Accrued Obligations will be deemed not to include the component in clause (d) of the definition of that term, and any other entitlements required by the ESA (as defined herein).

 

Section 5.2                                   Termination without Cause or Resignation for Good Reason

 

The Company may terminate the Executive’s employment with the Company without Cause or the Executive may resign his employment for Good Reason as set out below. Following such a termination/resignation, so long as the Executive has not breached the Confidentiality, Non-Competition and Work Product Assignment Agreement and the Executive has entered into an effective general release of claims in a form as attached at Exhibit “B”, in addition to the Accrued Obligations, the Executive shall be entitled to receive the following:

 

(1)                                 A payment equal to three (3) times the Executive’s Total Compensation, payable in substantially equal installments during the twelve (12) month period following termination (the “Severance Period”) in accordance with the Company’s regular payroll practices. If the Executive’s minimum entitlements to notice of termination, severance pay, and benefit plan contributions, if any, under Employment Standards Act, 2000 (Ontario), as amended (the “ESA”) are greater than the payments set out in this Section 5.2(1), the Executive is entitled to such greater entitlements; and

 

(2)                                 Continuation of the Executive’s participation in the Company’s group insurance benefits, the use of the automobile and the benefits associated with same during the Severance Period.

 

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Section 5.3                                   Termination upon Death

 

If the Executive dies while employed by the Company, this Agreement shall terminate and the Executive’s estate shall be entitled only to receive the Accrued Obligations payable  through the date of such death; provided however that the Company shall maintain and continue the Benefit Plans previously enjoyed by and for the benefit of the dependents of the Executive for a period of at least 12-months thereafter.

 

Section 5.4                                   Termination upon Disability

 

Subject to any duty under applicable law to accommodate, if the Executive becomes physically or mentally disabled while employed by the Company (whether totally or partially, so that the Executive is unable substantially to perform the Executive’s services hereunder as determined, in good faith, by the Board of Directors following consultation with medical advisors selected by the Board of Directors) for (a) a period of six consecutive months, or (b) for shorter periods aggregating six months during any 12 month period (in each of clauses (a) and (b), such time periods shall include any legally required leaves of absence or accommodation), the Company may, by written notice to the Executive, terminate the Executive’s employment. In the event of termination of the Executive’s employment by the Company by reason of disability, the Executive shall be entitled only to receive the Accrued Obligations payable through the date of termination, plus such other minimum payments and benefits as may be required pursuant to the ESA; provided however that the Company shall maintain and continue the Benefit Plans previously enjoyed by and for the benefit of the Executive and his dependents for a period of at least 12-months thereafter.

 

Section 5.5                                   Termination by Executive without Good Reason

 

The Executive may terminate employment with the Company upon giving at least 30 days advance written notice to such effect to the Company. In the event the Executive’s employment is terminated by the Executive, the Executive shall be entitled only to receive the Accrued Obligations payable through the date of such termination; provided that for purposes of this Section 5.5 Accrued Obligations will be deemed not to include the component in clause (d) of the definition of that term. The Company reserves the right to waive the notice period, or any portion thereof, for no consideration.

 

Section 5.6                                   Change of Control

 

Should the Company terminate the Executive’s employment on a without cause basis within the eighteen (18) month period following a Change of Control, and so long as the Executive has not breached the Confidentiality, Non-Competition and Work Product Assignment Agreement and the Executive has entered into an effective general release of claims in a form as attached at Exhibit “B”, in addition to the Accrued Obligations, the Executive shall be entitled to receive the following:

 

(1)                                 A payment equal to three (3) times the Executive’s Total Compensation, payable in substantially equal installments during the twelve (12) month period following termination (the “Change of Control Severance Period”) in accordance with the Company’s regular payroll practices. If the Executive’s minimum entitlements to notice

 

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of termination, severance pay, and benefit plan contributions, if any, under Employment Standards Act, 2000 (Ontario), as amended (the “ESA”) are greater than the payments set out in this Section 5.6(1), the Executive is entitled to such greater entitlements; and

 

(2)                                 Continuation of the Executive’s participation in the Company’s group insurance benefits, the use of the automobile and the benefits associated with same during the Change of Control Severance Period.

 

Section 5.7                                   Mitigation

 

The Executive shall not be required to mitigate the amount of any payments provided for under Section 5.2 or Section 5.6 by seeking other employment or otherwise, nor shall the amount of any payment provided for in Section 5.2 or Section 5.6 be reduced by any compensation earned by the Executive as a result of employment by another employer after the effective date of termination, or otherwise.

 

Section 5.8                                   Interpretation:

 

For purposes of this Agreement:

 

“Accrued Obligations” means as of the date of the Executive’s termination, (a) the Executive’s earned but unpaid Base Salary and vacation pay, if any, through such date, (b) any unreimbursed business expenses payable to the Executive pursuant to applicable Company policy, (c) any Bonus earned but not previously paid to the Executive with respect to the fiscal year preceding the fiscal year in which such date of termination occurs, (d) any Retention Bonus earned but not previously paid to the Executive with respect to the fiscal year preceding the fiscal year in which such date of termination occurs; and (d) a pro rated Bonus for the period of active employment in the fiscal year in which the date of termination occurs, calculated at target.

 

“Cause” means (i) the Executive’s conviction of, any criminal offence punishable by imprisonment or any crime of moral turpitude, (ii) the Executive’s gross negligence or material, intentional misconduct in the performance of the Executive’s duties to the Company, following notice to the Executive and the failure of the Executive to cure such repeated conduct within a 30 day period after receiving such notice, (iii) the Executive’s fraud or willful dishonesty or material misrepresentation intended to result in direct or indirect gain or personal enrichment at the expense of the Company or its equity holders, (iv) other intentional conduct of the Executive that materially injures the Company or its reputation including but not limited to knowingly participating or allowing accounting or tax improprieties, bribery, embezzlement or theft, (v) the Executive’s material breach of this Agreement or the Confidentiality, Non-Competition and Work Product Assignment Agreement, or (vi) other conduct by the Executive which would be treated as cause by the courts of the Province of Ontario, Canada.

 

“Change of Control” means:

 

a)                   any merger, amalgamation or consolidation of the Company into or with another entity (except one in which the holders of the shares in the capital of the

 

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Company immediately prior to such merger, amalgamation or consolidation continue to hold at least a majority of the voting power of the shares of capital in the surviving or continuing corporation);

 

b)                   any sale of all or substantially all of the assets of the Company;

 

c)                    any other transaction or series of transactions pursuant to, or as a result of, which a single person (or group of affiliated persons) acquires (from the Company or directly from the shareholders of the Company) or holds shares of capital in the Company representing a majority of the Company outstanding voting power, including a Share Sale (as defined in the Shareholders Agreement), or

 

d)                   a sale (or multiple sales) of one or more subsidiaries of the Company (whether by way of merger, amalgamation, consolidation, reorganization or sale of all or substantially all assets or securities) which constitute all or substantially all of the consolidated assets of the Company and its subsidiaries; but not including an Initial Public Offering.

 

“Good Reason” shall mean and shall be deemed to exist if, without the prior express written consent of the Executive, (i) the Executive suffers a material demotion in his title or position as it existed on the date of this Agreement; (ii) the Executive suffers a material reduction in his duties, responsibilities, reporting objectives or effective authority associated with his title and position; (iii) the Executive’s Base Salary is decreased by the Company; or (iv) the Company breaches this Agreement, including without limitation failing to pay the Executive’s compensation or to provide for the Executive’s benefits within 30 days of when due. To resign with Good Reason, the Executive must give the Company written notice of his resignation for Good Reason within 9 months after the initial occurrence of any such event, the Company must have 30 days to cure such event, and the Executive must resign within 30 days after the Company’s failure to cure such event, in order for Executive’s resignation with Good Reason to be effective hereunder.

 

“Total Compensation” means the sum of the Executive’s Base Salary and the Bonus received by the Executive in respect of the fiscal year immediately prior to the year in which the termination date occurs.

 

ARTICLE 6
 OTHER PROVISIONS

 

Section 6.1                                   Notices

 

Any notice or other communication required or which may be given hereunder shall be in writing and shall be delivered personally, telecopied (with a confirming copy by overnight delivery service or first class mail), sent by overnight delivery service with delivery signature required, or sent with return receipt requested by certified, registered, or express mail, postage prepaid to the parties at the following addresses or at such other addresses as shall be specified by the parties by like notice, and shall be deemed given when so delivered personally, telecopied or if mailed, two days after the date of mailing, as follows:

 

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if to the Company, at:

 

GFL Environmental Inc.
 100 New Park Place, Suite 500
 Vaughan, ON L4K 0H9

 

Attention: Mindy Gilbert
 Email: General Counsel

 

if to the Executive, at:

 

100 New Park Place, Suite 500
 Vaughan, ON L4K 0H9

 

Attention: Patrick Dovigi
 E-mail: pdovigi@gflenv.com

 

Section 6.2                                   Entire Agreement

 

This Agreement (including the documents attached hereto as Exhibit “A” and Exhibit “B” ) constitutes the entire agreement among the parties and supersedes and nullifies any prior understandings, agreements or representations by or among the parties, written or oral, that may have related in any way to the subject matter hereof. The parties acknowledge and agree that this Agreement shall be interpreted to comply with the ESA and it is the intention of the parties to comply with the ESA.

 

Section 6.3                                   Waivers and Amendments

 

This Agreement may be amended, modified, superseded, cancelled, renewed or extended, and the terms and conditions hereof may be waived, only by a written instrument signed by the parties making specific reference to this Agreement, or, in the case of a waiver, by the party waiving compliance. No delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege hereunder, nor any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder.

 

Section 6.4                                   Governing Law

 

This Agreement shall be governed by and construed and enforced in accordance with and subject to, the laws of the Province of Ontario and the laws of Canada applicable therein. The parties hereby attorn to the exclusive jurisdiction of the courts of the Province of Ontario and all Canadian courts competent to hear appeals therefrom. The parties waive and agree not to assert any defense that the court lacks jurisdiction or that venue is improper or inconvenient.

 

Section 6.5                                   Acknowledgments

 

The Executive acknowledges that the Executive has read this entire Agreement, has had the opportunity to consult with an attorney, and fully understands the terms of this Agreement.

 

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The Executive is satisfied with the terms of this Agreement and agrees that its terms are binding  upon the Executive and the Executive’s heirs, assigns, executors, administrators, and legal representatives.

 

Section 6.6                                   Assignment

 

This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors, heirs and permitted assigns. No rights or obligations of the Executive under this Agreement may be assigned or transferred by the Executive other than the Executive’s right to compensation and benefits hereunder, which may be transferred by will or operation of law subject to the limitations of this Agreement. No rights or obligations of the Company under this Agreement may be assigned or transferred by the Company except that such rights or obligations may be assigned or transferred pursuant to a merger or consolidation or amalgamation or plan of arrangement in which the Company is not the continuing entity, or the sale or liquidation of all or substantially all of the assets of the Company, provided that the assignee or transferee is the successor to all or substantially all of the assets of the Company and such assignee or transferee assumes by operation of law or in a writing duly executed by the assignee or transferee all of the liabilities, obligations and duties of the Company, as contained in this Agreement, either contractually or as a matter of law, as if no such assignment or transfer had taken place. Notwithstanding the foregoing, all of the rights and obligations of the Company hereunder may be assigned to and assumed by a subsidiary or affiliate of the Company pursuant to a written assignment and assumption agreement in form reasonably satisfactory to the Company and such assignee shall thereafter be the “Company” hereunder. Following such assignment and assumption, the Company shall have no liability under this Agreement.

 

Section 6.7                                   Counterparts

 

This Agreement may be executed in two or more counterparts (which may be effectively delivered by facsimile or other electronic means), each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

 

Section 6.8                                   Headings

 

The headings in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement

 

Section 6.9                                   Severability

 

If any term, provision, covenant or restriction of this Agreement, or any part thereof, is held by a court of competent jurisdiction of any federal, provincial, foreign, state, county or local government or any other governmental, regulatory or administrative agency or authority to be invalid, void, unenforceable or against public policy for any reason, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

 

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Section 6.10                            Currency

 

All references to dollars and cents in this Agreement are to the lawful currency of the United States.

 

Section 6.11                            Deductions and Withholdings

 

The Company shall be entitled to make such deductions and withholdings from the Executive’s Base Salary, Bonus and other compensation and benefits as may be required by law or otherwise authorized by the Executive, and when such deductions are properly remitted to the applicable crown or governmental agency, the Company’s obligations in respect thereof shall thereby be satisfied to the extent of such deductions and withholdings.

 

[Signature page follows]

 

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IN WITNESS WHEREOF, the parties have executed this Agreement the date first above written.

 

 

	
 
    	
 
    	
GFL ENVIRONMENTAL INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
Paolo Notarnicola
    
	
 
    	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Executive:
    	
 
    
	
 
    	
 
    	
 
    	
PATRICK DOVIGI
    
						

 

Signature Page to Confidential Employment Agreement

 

 

EXHIBIT “A”
 CONFIDENTIALITY, NON-COMPETITION AND WORK
 PRODUCT ASSIGNMENT AGREEMENT

 

This Confidentiality, Non-Competition and Work Product Assignment Agreement (“Agreement”) is entered into between GFL ENVIRONMENTAL INC., including its parents, successors, subsidiaries and affiliated companies, (collectively, the “Company”) and Patrick Dovigi, who is employed as the President and Chief Executive Officer of the Company (“Executive”). The Company and Executive, each intending to be fully and mutually bound, and in consideration of Executive’s employment with the Company, agree as follows:

 

Acknowledgement

 

1.                                      Executive acknowledges that this Agreement is necessary for the protection of the legitimate and protectable business interests of the Company in its customer relationships, customer goodwill, accounts, prospects, employees, and confidential and proprietary information.

 

Confidential Information

 

2.                                      During Executive’s employment with the Company, Executive has been granted and will be granted access to confidential, proprietary and/or trade secret information of the Company. This information includes any information, however communicated or recorded, relating to the business or affairs of the Company, and includes, but is not limited to, any information of a commercial, operational, technical or financial type and specifically all information relating to any apparatus, process, training, formula or product, corporate opportunities, research, financial and sales data, pricing and trading terms, leases, operating costs, evaluations, interpretations, remuneration strategies and plans, acquisition prospects, the identity of customers, accounts or their requirements, the identity of key client contacts, clients lists, sales and marketing strategies, prospective names and marks and any trade secret (hereafter collectively referred to as “Confidential Information”). Confidential Information does not include:

 

(a)                                 the general skills, general knowledge and experience gained during the Executive’s employment;

 

(b)                                 information publicly known without breach of this Agreement; or,

 

(c)                                  information, the public disclosure of which is required to be made by any law, regulation, governmental authority or court (to the extent of the requirement), provided that before disclosure is made, notice of the requirement is provided to the Company where it is within the Executive’s control to provide such notice, and to the extent possible in the circumstances, the Company is afforded an opportunity to dispute the requirement.

 

3.                                      Executive must not disclose Confidential Information to any person except in the proper performance of Executive’s job duties or with the Company’s prior written consent, unless compelled by law. Executive may not make a copy or other record of Confidential

 

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Information except in the proper performance of Executive’s job duties. In addition, Executive must not use Confidential Information for a purpose other than for the benefit of the Company. If Executive is uncertain as to whether certain information is Confidential Information, Executive shall treat that information as Confidential Information unless Executive is advised in writing by the Company to the contrary.

 

4.                                      Upon termination of employment, or at any time at the request of the Company, Executive must immediately deliver to the Company all documents or other things in Executive’s possession, custody or control on which any Confidential Information is stored or recorded, whether in writing or in electronic or other form. Executive’s obligations with respect to Confidential Information will continue after the termination of the employment relationship.

 

Intellectual Property

 

5.                                      Executive acknowledges and agrees that all written materials, articles, presentations, figures, notes, diagrams, discoveries, ideas, developments, processes, plans, designs, formulas, specifications, programs, including computer software, and any other matter or work whatsoever, which Executive may conceive, create or develop, whether alone or with others, during Executive’s employment with the Company and applicable to the business of the Company, or made on Company time or with Company resources, regardless of whether or not conceived, created or generated at the direction of the Company or created during or outside of work hours (hereafter “Works”), is the exclusive property of the Company. Executive shall acquire no proprietary interest in or to any such Works.

 

6.                                      Executive agrees to disclose to the Company all Works, whether capable of attracting intellectual property rights or not, whether patentable, registerable or copyrightable. All Works shall be considered “work for hire” and to the extent Executive may, by operation of law or otherwise, acquire any right, title or interest in or to any Work, Executive hereby assigns to the Company (or any person or entity designated by the Company) all of his right, title and interest in and to all Works and all related patents, patents application, copyrights and copyright applications.

 

7.                                      Executive further agrees to do all such things as may be requested by the Company to confirm or protect the Company’s title in the intellectual property rights in the Works, including: (i) assigning to the Company all existing and future intellectual property rights in the Works (whether during or after the termination of the employment) at the Company’s expense; (ii) applying, executing any instrument and undertaking to do all things reasonably requested by the Company to vest the registration of title or other similar protection to the Company; and (iii) ensuring all intellectual property rights in the Works become the absolute property of the Company. If the Company is unable for any other reason to secure Executive’s signature to apply for or to pursue any application for intellectual property rights concerning any Works, Executive hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as his agent and attorney in fact, to execute and further the prosecution and issuance of such applications or registrations with the same legal force and effect as if executed by Executive himself. Executive agrees that his obligations with respect the

 

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Works will survive the termination of his employment with the Company and will be enforceable at any time at law or in equity and will continue to the benefit of and be enforceable by the Company.

 

8.                                      Executive warrants that the use of all Works assigned to the Company under this section will not infringe any other person or entity’s intellectual property or other rights and that the Company (and its authorized agents) will be entitled to use the Works without the consent of any other person.

 

Non-Solicitation and Non-Interference

 

9.                                      Executive agrees that while Executive is employed by the Company and for a period of 12 months following Executive’s termination of employment for any reason, Executive will not, directly or indirectly:

 

(a)                                 solicit, contact or divert, or attempt to solicit, contact or divert, for the purpose of selling or providing goods or services that are competitive with the goods or services offered by the Company, any clients, customers or accounts of the Company with whom Executive had business dealings or introductions, or about which Executive had Confidential Information, during the Executive’s employment with the Company;

 

(b)                                 solicit, recruit or induce any officer, director, employee or consultant of the Company to terminate his or her employment or consulting relationship with the Company, provided that, for clarity, general advertisements placed in newspapers and other publications shall not constitute solicitation; or

 

(c)                                  interfere with or attempt to interfere with any relationship, contractual or otherwise, between the Company and its customers, vendors, distributors or agents.

 

Non-Competition

 

10.                               In order for the Company to protect its Confidential Information, client relations, goodwill and other protectable interests, Executive agrees that while Executive is employed by the Company and for a period of 12 months following Executive’s termination of employment for any reason, Executive will not, directly or indirectly, whether as an employee, consultant, advisor, contractor, owner, investor, manager, director, officer, partner, lender, shareholder (other than as a passive shareholder of no more than 1% of a publicly-held corporation), or in any other capacity, be involved in the Territory in activities that are competitive with the business of the provision of environmental services, including solid waste, infrastructure and soil remediation and liquid waste management, or any other business reasonably anticipated to be conducted by the Company within the following year as reflected in the most recent business plan approved by the Board, or provide services to any person, firm or entity that engages in such activities in the Territory. “Territory” means each province in Canada and each state in the United States in which the Company has meaningful business activities at the time of Executive’s termination of employment or reasonably anticipated to have

 

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meaningful activities within the following year as reflected in the most recent business plan approved by the Board.

 

Miscellaneous

 

11.                               Executive acknowledges that the restrictions contained in this Agreement are necessary for the protection of the business and goodwill of the Company and are considered by Executive to be reasonable for such purpose. Executive agrees that any breach of this Agreement may cause the Company substantial and irrevocable damage and therefore, in the event of any such breach, in addition to such other remedies which may be available, the Company shall have the right to seek specific performance and injunctive relief without posting a bond.

 

12.                               Executive agrees that the Company may notify anyone employing Executive or evidencing an intention to hire Executive as to the existence and provisions of this Agreement.

 

13.                               Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective, enforceable and valid. If any one or more of the provisions of this Agreement shall be declared illegal, unenforceable or ineffective, those provisions shall be deemed severable, such that all other provisions of this Agreement shall remain valid, enforceable and binding upon both parties.

 

14.                               The construction, interpretation and performance of this Agreement shall be governed by the laws of the Province of Ontario and the laws of Canada applicable therein. Executive hereby attorns to the jurisdiction of the courts of the Province of Ontario in connection with any suit, action or other proceeding concerning or arising out of this Agreement. Executive waives and agrees not to assert any defense that the court lacks jurisdiction or that venue is improper or inconvenient.

 

15.                               No delay or omission by the Company in exercising any right under this Agreement will operate as a waiver of that or any other right. A waiver or consent given by the Company on any one occasion is effective only in that instance and will not be construed as a bar to or waiver of any right on any other occasion.

 

16.                               This Agreement shall be binding upon and inure to the benefit of both parties and their respective successors and assigns, provided however that the obligations of the Executive are personal and shall not be assigned by the Executive.

 

17.                               Executive acknowledges that this Agreement does not constitute a contract of employment and does not imply that the Company will continue Executive’s employment for any specific period of time.

 

18.                               This Agreement represents the full and final understanding of the parties with respect to the subject matter hereof, and supersedes any and all prior agreements and understandings regarding this subject matter, and may be modified only by a written agreement signed by both parties.

 

A-4

 

IN WITNESS WHEREOF, the parties have executed this Agreement the date first above written.

 

 

	
 
    	
 
    	
GFL ENVIRONMENTAL INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
Paolo Notarnicola
    
	
 
    	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Executive:
    	
 
    
	
 
    	
 
    	
 
    	
PATRICK DOVIGI
    
						

 

Signature Page to Confidential Employment Agreement

 

A-5

 

EXHIBIT “B”
 MUTUAL RELEASE

 

THIS IS A FULL AND FINAL MUTUAL RELEASE between GFL Environmental Inc. (the “Company”) and Patrick Dovigi (the “Executive”) of all claims arising out of the Executive’s employment with the Company (the “Executive’s Tenure”).

 

THE COMPANY AND EXECUTIVE desire to fully and finally settle and release all claims, liabilities, demands and issues known and unknown relating to the Executive’s Tenure except as noted herein.

 

NOW THEREFORE in consideration of and subject to the discharge of the obligations set out in Section 5.2 of the Employment Agreement (the “Agreement”) executed by the parties and other good and valid consideration the receipt of which is hereby acknowledged:

 

1.                                      The Executive and the Company hereby fully and forever mutually release and discharge each other (including all of their respective heirs, executors, administrators, personal representatives, predecessors, parent corporations, affiliates, successors, assigns, officers, and agents) from any and all liability whatsoever, whether joint or several, in respect of all claims, demands, actions and suits whatsoever that now exist, have existed or shall exist arising out of the Executive’s Tenure, except that the Company does not release the Executive from or in respect of past and future claims (i) arising out of fraud in respect of the business, assets and affairs of the Company, (ii) arising out of any act or omission that would constitute grounds for termination of Executive’s employment for Cause (as defined in the Agreement), (iii) in respect of any conduct for which the Executive would not be eligible for indemnification under the Company’s organizational documents, director’s and officer’s insurance policy or applicable law, or (iv) in respect of which the members of the Board of Directors of the Company have no knowledge of as of the date hereof. The Executive specifically releases the Company’s shareholders and their Executives, officers and employees from all such claims covered by this paragraph 0.

 

2.                                      The Executive and the Company agree that the consideration set out in the Agreement is not an admission of liability on the part of either of them.

 

3.                                      The Executive and the Company agree that this Release does not apply to the following:

 

(a)                                 the rights and obligations of the Executive or the Company (including all of their respective heirs, executors, administrators, personal representatives, predecessors, parent corporations, affiliates, successors, assigns, officers, and agents) under the Confidentiality, Non-Competition and Work Product Assignment Agreement executed by the parties or any other agreement or instrument between or among or in favour of the Executive and/or the Company (including all of their respective heirs, executors, administrators, personal representatives, predecessors, parent corporations, affiliates, successors, assigns, officers, and agents), including under the Company’s unanimous shareholders agreement;

 

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(b)                                 any rights the Executive may have to indemnity under applicable law, the by-laws of the Company, or any agreement of indemnity or similar covenant of the Company in favour of the Executive; and

 

(c)                                  the Executive’s rights to contribution or indemnification with respect to coverage under any applicable director’s and officer’s insurance policy of the Company.

 

4.                                      The Executive and the Company each agree not to make any claim or take any proceeding in connection with any of the claims released by virtue of these presents against any other person, corporation or partnership who might claim contribution, indemnity or other relief from the Executive or the Company by virtue of said claim or proceeding.

 

5.                                      The Executive and the Company hereby expressly acknowledge that each has had an opportunity to seek independent legal advice with reference to the matters addressed in it and the terms of settlement contained in the Agreement. Except as provided herein, each party voluntarily agrees to said terms for the purpose of making full and final compromise, adjustment and settlement of all claims as aforesaid.

 

6.                                      The Executive and the Company agree that this Full and Final Mutual Release may be executed in two counterparts, each of which will be deemed to be an original and both of which taken together shall constitute one instrument.

 

IN WITNESS WHEREOF the Executive and the Company have set their respective hands and seals or affixed it corporate seal duly attested by the hands of its proper officers on its behalf.

 

DATED at                           this         day of                         , 20  .

 

 

	
 
    	
 
    	
GFL ENVIRONMENTAL INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness
    	
 
    	
PATRICK DOVIGI
    

 

Signature Page to Confidential Employment Agreement

 

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