Document:

Exhibit
4.7

 

 

AMENDMENT NO 1

 

TO

 

RIGHTS AGREEMENT

 

dated as of

 

May 1, 2004

 

between

 

FOG CUTTER CAPITAL GROUP INC.

 

and

 

THE BANK OF NEW YORK

 

as Rights Agent

 

 

 

AMENDMENT NO 1 TO RIGHTS AGREEMENT, dated as of May 1, 2004 (the “Amendment”),
between FOG CUTTER CAPITAL GROUP INC., a Maryland corporation (the “Corporation”)
and THE BANK OF NEW YORK, a New York banking corporation (the “Rights Agent”)
to the Rights Agreement, dated as of October 18, 2002 (the “Rights
Agreement”), between the Corporation and the Rights Agent.

 

PRELIMINARY
STATEMENT

 

WHEREAS,
the Distribution Date with respect to the Rights has not occurred; and

 

WHEREAS, in
accordance with Section 27 of the Rights Agreement, the parties to the
Rights Agreement may amend the Rights Agreement prior to the Distribution Date
without the consent of the holders of the Rights; and

 

WHEREAS, the
Board of Directors of the Corporation desires more flexibility to deal with
individuals or entities who may become Acquiring Persons without adversely
impacting the Corporation’s tax position;

 

NOW
THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereby agree as follows:

 

SECTION 1.  Definitions.  All terms used in this Amendment that are
defined in the Rights Agreement, either directly or by reference therein, have
the meanings assigned to them therein, except to the extent such terms are
defined or modified in this Amendment or the context clearly requires
otherwise.  In the event that any term or
provision contained herein shall conflict with or be inconsistent with any term
or provision contained in the Rights Agreement, the terms and provisions of
this Amendment shall govern.

 

SECTION 2.  Amendments.  The definition of “Acquiring Person” is
hereby amended and restated in its entirety as follows:

 

“(a)  “Acquiring Person” shall mean (i) any
Person who or which, together with all Affiliates of such Person, shall be the
Beneficial Owner of 5% or more of the then outstanding Common Shares (other
than as a result of a Permitted Offer (as hereinafter defined)) or was such a
Beneficial Owner at any time after the date hereof, whether or not such person
continues to be the Beneficial Owner of 5% or more of the then outstanding
Common Shares and (ii) any Person who or which, together with all Affiliates of
such Person, was the Beneficial Owner of 5% or more of the then outstanding
Common Shares at any time prior to the date hereof, and thereafter such
Beneficial Owner’s ownership interest increases by 1% or more of the then
outstanding Common Shares (other than as a result of a Permitted Offer).  Notwithstanding the foregoing, (A) the term “Acquiring
Person” shall not include (i) the Corporation, (ii) any Subsidiary of the
Corporation, (iii) any employee benefit plan (including options granted
thereunder) of the Corporation or of any Subsidiary of the Corporation, or (iv)
any Person or entity organized, appointed or established by the Corporation for
or pursuant to the terms of any such plan (including the Fog Cutter Long Term
Vesting Trust), and (B) no Person shall become an “Acquiring Person”:

 

(i)                                     as
a result of the acquisition of Common Shares by the Corporation which, by
reducing the number of Common Shares outstanding, increases the proportional
number of shares beneficially owned by such Person together with all Affiliates
of such Person; provided that if (1) a Person would be or become an Acquiring
Person (but for the operation of this subclause (i)) as a result of the
acquisition of Common Shares by the Corporation, and (2) after such share
acquisition by the Corporation, such Person, or an Affiliate of such Person,
becomes the Beneficial Owner of any additional Common Shares, then such Person
shall be deemed an Acquiring Person;

 

(ii)                                  if
the Board of Directors determines in good faith that a Person who would
otherwise be an “Acquiring Person” has become such inadvertently, and such
Person (A) does not attempt to

 

 

exercise any
control over the business affairs or management of the Corporation, including
by means of a proxy solicitation, and (B) is able to rescind a sufficient
number of Common Shares so that such Person not be an “Acquiring Person”, then
such Person shall not be deemed an “Acquiring Person” for any purposes of this
Agreement; or

 

(iii)                               if
the Board of Directors determines in good faith that a Person who would
otherwise be an “Acquiring Person” has become such without materially adversely
impacting the Corporation’s tax or NOL position or without exceeding the change
of ownership limits contained in Section 382 and other related provisions
of US tax law, then such Person shall not be deemed an “Acquiring Person” for
any purposes of this Agreement.”

 

SECTION 3.  Warranties.
 The Corporation hereby represents and
warrants that the Distribution Date has not yet occurred and hereby certifies
that the proposed Amendment is in compliance with the terms of Section 27
of the Rights Agreement and that the Rights Agent may execute such Amendment,

 

SECTION 4.  Ratification of Agreement.  As supplemented and amended by this
Amendment, the Rights Agreement is in all respects ratified and confirmed and
the Rights Agreement, as so supplemented and amended by this Amendment, shall
be read, taken, and construed as one and the same instrument.

 

SECTION 5.  Counterparts.  This Amendment may be executed in any number
of counterparts, each of which so executed shall be deemed to be an original,
but all of such counterparts shall together constitute but one and the same
instrument.

 

SECTION 6.  Governing Law; Instrument under Seal.  This Amendment shall be deemed to be a
contract made under the laws of the State of Maryland and for all purposes
shall be governed by and construed in accordance with the laws of such State
applicable to contracts to be made and performed entirely within such State,
provided, however, that the rights of the Rights Agent shall be governed by and
construed in accordance with the laws of the State of New York.

 

B-2

 

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be duly executed and attested, all
as of the date and year first above written.

 

 

	
   

  	
  FOG CUTTER CAPITAL
  GROUP INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ R. Scott Stevenson

  	
   

  
	
   

  	
   

  	
  Name: R. Scott
  Stevenson

  
	
   

  	
   

  	
  Title: Senior Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stacy Beech

  	
   

  
	
   

  	
   

  	
  Name: Stacy Beech

  
	
   

  	
   

  	
  Title: Assistant Vice
  President

  
						

 

B-3Exhibit
4.9

 

AMENDMENT TO LONG TERM VESTING
TRUST

 

                AMENDMENT TO LONG
TERM VESTING TRUST, dated as of September 19, 2002 (this “Amendment”),
by and between Fog Cutter Capital Group Inc. (the “Company”) and Andrew
A. Wiederhorn, Don Coleman and David Dale-Johnson (hereinafter referred to,
individually and collectively, as the “Trustee” or “Trustees”).

 

                WHEREAS, the
Company and the Trustees or former Trustees entered into the Fog Cutter Long
Term Vesting Trust made as of the 1st day of October, 2000 by and between
the Company and the Trustees or former Trustees (the “Original Agreement”);
and

 

                WHEREAS, the
Original Agreement was overly restrictive with respect to investing cash
balances and the parties wish to allow the Trustees greater flexibility; and

 

                WHEREAS, the
Original Agreement may be amended pursuant to the provisions of Section 10(a)
thereof;

 

                NOW, THEREFORE, in
consideration of the foregoing and the respective representations, warranties,
covenants and agreements set forth herein, and intending to be legally bound
hereby, the parties agree as follows:

 

                Section 1.              General.

 

                (a)           Rules of Construction.        For all purposes of this Amendment,
capitalized terms used herein without definition shall have the meanings
specified in the Original Agreement.

 

                (b)           Relation
to the Original Agreement.          This
Amendment constitutes an integral part of the Original Agreement.

 

                Section 2.              Amendment.          Section 3 of the Original Agreement is hereby amended by
deleting the second sentence of that section and replacing it with the
following sentence:

 

                                “Notwithstanding
the foregoing, Trust assets may be invested in public and private equity
securities, bonds, notes or other debt securities, short-term money market
funds or other cash equivalents.”

 

Section 3.              Miscellaneous.

 

                (a)           Ratification.           The Original Agreement, as
supplemented and amended by this Amendment, is in all other respects hereby
adopted, ratified and confirmed.

 

                (b)           Counterparts.        This Amendment may be executed in any
number of counterparts, each of which when so executed shall be deemed an
original, but all such counterparts shall together constitute but one and the
same instrument.

 

                (c)           Governing Law. 
This Amendment shall be governed by and construed in accordance with the
laws of the State of Delaware, applicable to contracts made between residents
of that state, entered into and to be wholly performed within that state.

 

 

[SIGNATURE PAGE FOLLOWS]

 

 

                IN WITNESS
WHEREOF, parties have executed this Amendment as of the date first written
above.

 

 

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  FOG CUTTER CAPITAL GROUP INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
       /s/ Don H. Coleman

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  TRUSTEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
       /s/ Andrew A.
  Wiederhorn

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  TRUSTEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
       /s/ David Dale-Johnson

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