-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Vh0tV8tT63mkeDrAkm9CQnDLVRmVy8GJ3eZxb8sGuiGd9CV7PQgUDTMxguaC/OJC mmQDP9WQM2x4e4WoyYHi7A== 0000912057-02-006587.txt : 20020414 0000912057-02-006587.hdr.sgml : 20020414 ACCESSION NUMBER: 0000912057-02-006587 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 8 FILED AS OF DATE: 20020215 GROUP MEMBERS: ANTHONY CORSO GROUP MEMBERS: CERI ACPII LIMITED PARTNERS, LP GROUP MEMBERS: CHURCH M. MOORE GROUP MEMBERS: DAVID J. FEALS GROUP MEMBERS: DURKIN & DURKIN REALTY, LLC GROUP MEMBERS: ERNESET CIGNARELLA GROUP MEMBERS: FRANK ARACE GROUP MEMBERS: FRANK J. LOVERRO GROUP MEMBERS: FRANK K. BYNUM, JR. GROUP MEMBERS: FRANK T. NICKELL GROUP MEMBERS: GENE A. MEREDITH GROUP MEMBERS: GEORGE E. MATELICH GROUP MEMBERS: GWD MANAGEMENT INC. GROUP MEMBERS: HOWARD A. MATLIN GROUP MEMBERS: JAMES J. CONNORS II GROUP MEMBERS: JOHN A. PINTO GROUP MEMBERS: JOHN P. PINTO GROUP MEMBERS: JOSEPH C. ROSELLE GROUP MEMBERS: JOSEPH CALDEIRA, JR. GROUP MEMBERS: JOSEPH N. VERROCHI GROUP MEMBERS: KEVIN P. FLYNN, JUNE 1992 NON-EXEMPT TRUST GROUP MEMBERS: MICHAEL B. LAZAR GROUP MEMBERS: MICHAEL G. DEGROOTE GROUP MEMBERS: MICHAEL J. VERROCHI GROUP MEMBERS: MICHELLE ROSELLE GROUP MEMBERS: NICHOLAS SANTINELLI GROUP MEMBERS: PAUL THOMPSON III GROUP MEMBERS: PETER A. ROSELLE GROUP MEMBERS: PETER J. ROSELLE GROUP MEMBERS: PETER T. ROSELLE GROUP MEMBERS: PHILIP E. BERNEY GROUP MEMBERS: ROBERT F. IRWIN, IV GROUP MEMBERS: STEPHEN SCIOSCIA GROUP MEMBERS: THOMAS R. WALL, IV GROUP MEMBERS: VERONICA L. ROSELLE GROUP MEMBERS: VERONICA ROSELLE GROUP MEMBERS: VINCENT APICE SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: CAPITAL ENVIRONMENTAL RESOURCE INC CENTRAL INDEX KEY: 0001065736 STANDARD INDUSTRIAL CLASSIFICATION: REFUSE SYSTEMS [4953] IRS NUMBER: 000000000 STATE OF INCORPORATION: A6 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-57445 FILM NUMBER: 02551832 BUSINESS ADDRESS: STREET 1: 1005 SKYVIEW DR STREET 2: BURLINGTON ONTARIO CITY: CANADA L7P5B1 STATE: A6 ZIP: 00000 BUSINESS PHONE: 9053191237 MAIL ADDRESS: STREET 1: 1005 SKYVIEW DRIVE STREET 2: BURLINGTON ONTARIO CITY: CANADA L7P5B1 STATE: A6 ZIP: 00000 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: SANDERS DON A CENTRAL INDEX KEY: 0000904778 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: 3100 TEXAS COMMERCE TOWER CITY: HOUSTON STATE: TX ZIP: 77002 BUSINESS PHONE: 7132243100 MAIL ADDRESS: STREET 1: 3100 TEXAS COMMERCE TOWER CITY: HOUSTON STATE: TX ZIP: 77002 SC 13D 1 a2069456zsc13d.htm SC 13D Prepared by MERRILL CORPORATION
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UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13D

Under the Securities Exchange Act of 1934


CAPITAL ENVIRONMENTAL RESOURCE INC.

(Name of Issuer)

Common Shares

(Title of Class of Securities)

14008M104

(CUSIP Number)

Karen A. Dewis, Esq.
McDermott, Will & Emery
600 13th Street, NW
Washington, DC. 20005
(202)756-8000

(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)

February 5, 2002

(Date of Event which Requires Filing of this Statement)

        If the filing person has previously filed a statement on schedule 13G to report the acquisition which is subject of this schedule 13D, and is filing this schedule because of Rule 13d-1(b)(3) or (4) check the following box    / /.

        Note: Six copies of this statement, including all exhibits, should be filed with the Commission. See Rule 13d-1(a) for other parties to whom copies are to be sent.

        *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

        The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Don A. Sanders

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
1,082,700
       

 

 

 

 

8

 

SHARED VOTING POWER
880,611
       

 

 

 

 

8

 

SHARED VOTING POWER
1,082,700
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
880,301

11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,926,311 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.29% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

2


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

GWD Management Inc.

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

WC

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

Ontario, Canada

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
1,500,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
1,500,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,500,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.33% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
CO

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

3


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Michael G. DeGroote

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

Canada

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
500,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
500,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
500,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.11% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

4


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

George E. Matelich

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
625,625
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
625,625
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
625,625 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.64% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

5


SCHEDULE 13D

CUSIP No.    14008M104

 

 

 

 
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Philip E. Berney

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
50,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
50,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0

11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
50,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.21% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

6


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Frank K. Bynum, Jr.

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
50,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
50,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
50,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.21%(may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

7


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

James J. Connors II

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
12,500
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
12,500
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
12,500 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.05% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

8


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Michael B. Lazar

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
12,500
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
12,500
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
12,500 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.05% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

9


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Frank J. Loverro

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
7,500
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
7,500
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
7,500 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.03% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

10


SCHEDULE 13D

CUSIP No.    14008M104

 

 

 

 
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Howard A. Matlin

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
12,500
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
12,500
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0

11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
12,500 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.05% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

11


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Church M. Moore

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*   (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
3,750
       
        8   0
       

 

 

 

 

8

 

SHARED VOTING POWER
3,750
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
0

11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,750 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.02% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

12


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Frank T. Nickell

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
625,625
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
625,625
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
625,625 (may be deemed to beneficially own all beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.64% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

13


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Thomas R. Wall, IV

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
100,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
100,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
100,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.42% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

14


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Michael J. Verrochi

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
300,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
300,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
300,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.27% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

15


SCHEDULE 13D

CUSIP No.    14008M104

 

 

 

 
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Robert F. Irwin, IV

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
0
       

 

 

 

 

8

 

SHARED VOTING POWER
410,000
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
0
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
410,000

11   11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
420,100 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.77% (may be deemed to beneficially own all beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

16


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

John A. Pinto

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
500,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
500,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
500,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.11% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

17


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Paul Thompson III

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
50,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
50,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
50,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.21% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

18


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Gene A. Meredith

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
200,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
200,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
200,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.84% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

19


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Peter J. Roselle

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
400,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
400,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
400,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.69% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

20


SCHEDULE 13D

CUSIP No.    14008M104

 

 

 

 
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

David J. Feals

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
50,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
50,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
50,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.21% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

21


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

CERI ACPII LIMITED PARTNERS, LP

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

WC

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
1,000,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
1,000,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,000,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.22% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

14 TYPE OF REPORTING PERSON*
PN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

22


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Joseph N. Verrochi

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
200,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
200,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
200,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.84% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

23


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Joseph C. Roselle

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
125,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
125,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
125,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.53% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

24


SCHEDULE 13D

CUSIP No.    14008M104

 

 

 

 
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Vincent Apice

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
125,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
125,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
125,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.53% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

25


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Nicholas Santinelli

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
5,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
5,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.02% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

26


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Michelle Roselle

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
5,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
5,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.02% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

27


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Veronica Roselle

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
5,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
5,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.02% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

28


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Veronica L. Roselle

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
5,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
5,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.02% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

29


SCHEDULE 13D

CUSIP No.    14008M104

 

 

 

 
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Anthony Corso

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
5,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
5,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.02% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

30


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Peter T. Roselle

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
20,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
20,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
20,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.08% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

31


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Peter A. Roselle

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
10,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
10,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
10,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.04% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

32


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Ernest Cignarella

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
10,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
10,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
10,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.04% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

33


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Joseph Caldeira, Jr.

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
15,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
15,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
15,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.06% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

34


SCHEDULE 13D

CUSIP No.    14008M104

 

 

 

 
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

John P. Pinto

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
50,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
50,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
50,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.21% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

35


SCHEDULE 13D

CUSIP No.    14008M104

 

 

 

 
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Stephen Scioscia

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
25,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
25,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
25,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.11% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

36


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Frank Arace

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
10,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
10,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
10,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.04% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
IN

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

37


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Kevin F. Flynn, June 1992 Non-Exempt Trust

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

PF

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
850,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
850,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
850,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.59% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
OO (Trust)

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

38


SCHEDULE 13D
CUSIP No.    14008M104        
             

1   NAMES OF REPORTING PERSONS S.S. OR
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 

 

Durkin & Durkin Realty, LLC

 

 

 

 

2   CHECK THE APPROPRIATE BOX IF A
MEMBER OF A GROUP*
  (a)    /x/
(b)    / /

3   SEC USE ONLY        

 

 

 

 

 

 

 

4   SOURCE OF FUNDS*        

 

 

WC

 

 

 

 

5   CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
  / /

6   CITIZENSHIP OR PLACE OF ORGANIZATION

 

 

United States of America

 

 

 

 


NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

 

7

 

SOLE VOTING POWER
175,000
       

 

 

 

 

8

 

SHARED VOTING POWER
0
       

 

 

 

 

9

 

SOLE DISPOSITIVE POWER
175,000
       

 

 

 

 

10

 

SHARED DISPOSITIVE POWER
0


11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
175,000 (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 10,023,411 shares)

12   CHECK BOX IF THE AGGREGATE
AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES*
  / /


13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.74% (may be deemed to beneficially own all shares beneficially owned by each member of the group, or 42.30%)


14

 

TYPE OF REPORTING PERSON*
OO (Limited Liability Company)

*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.

39



ITEM I—SECURITY AND ISSUER

        The class of securities to which this statement relates is the Common Shares (the "Common Shares") of Capital Environmental Resource Inc., a corporation organized under the laws of the province of Ontario, Canada (the "Company") whose principal executive office is located at 1005 Skyview Drive, Burlington, ON L7P 5131 Canada.


ITEM II—IDENTITY AND BACKGROUND

        (a)  This statement is being filed jointly pursuant to Rule 13d-1(f)(1) under the Securities Exchange Act of 1934, as amended, on behalf of Don A. Sanders, GWD Management Inc., Michael G. DeGroote, George E. Matelich, Philip E. Berney, Frank K. Bynum, Jr., James J. Connors II, Michael B. Lazar, Frank J. Loverro, Howard A. Matlin, Church M. Moore, Frank T. Nickell, Thomas R. Wall, IV, Michael J. Verrochi, Robert F. Irwin, IV, John A. Pinto, Paul Thompson III, Gene A. Meredith, Peter J. Roselle, David J. Feals, CERI ACPII Limited Partners, L.P., Joseph N. Verrochi, Joseph C. Roselle, Vincent Apice, Nicholas Santinelli, Michelle Roselle, Veronica Roselle, Veronica L. Roselle, Anthony Corso, Peter T. Roselle, Peter A. Roselle, Ernest Cignarella, Joseph Calderia, Jr., John P. Pinto, Steven Scioscia, Frank Arace, Kevin F. Flynn, June 1992 Non-Exempt Trust and Durkin & Durkin Realty, LLC (each individually, a "Reporting Person" and collectively, the "Reporting Persons")

        On February 5, 2002, the Reporting Persons and certain other investors entered into a Subscription Agreement with the Company (the "Subscription Agreement") pursuant to which such persons agreed to purchase an aggregate of 11,320,754 of the Company's Series 1 Preferred Shares (the "Preferred Shares"). The closing of the purchase of the Preferred Shares under the Subscription Agreement occurred on February 6, 2002. Holders of the Preferred Shares do not have any voting or dividend rights with respect to such Preferred Shares. Each Preferred Share is convertible into one Common Share automatically upon approval of such conversion by the holders of the Company's Common Shares. Under the Subscription Agreement, the Company has agreed to hold a special meeting of its shareholders, as promptly as practicable, for the purpose of voting on the issuance of Common Shares upon conversion of the Preferred Shares (the "Conversion Issuance"). Pursuant to the Subscription Agreement, each Reporting Person has agreed to vote all Common Shares held directly or indirectly by such Reporting Person in favor of approval of the Conversion Issuance. As a result of their agreement under the Subscription Agreement to vote their shares in favor of the Conversion Issuance, the Reporting Persons may be deemed to constitute a group for the purposes of Rule 13d-5 under the Act.

        (b)  Information with respect to each Reporting Person is provided below:

Name of Reporting Person

  Residence or Business Address

  Present Principal Occupation or
Employment and the Name, Principal
Business and Address of Organization
in which such employment is conducted (if applicable)

  Citizenship or Place
of Organization

Don A. Sanders   Sanders Morris Harris
3100 Chase Tower
Huston, TX 77002
  Chairman of the Executive Committee Sanders Morris Harris Inc., an investment banking company, 3100 Chase Tower Houston, TX 77002   U.S.A.

40



Michael G. DeGroote

 

Victoria Hall,
3rd Floor
11 Victoria Street
Hamilton HMEX
Bermuda

 

President of Westbury Bermuda Limited, a private investment management company,
Victoria Hall
3rd Floor
11 Victoria Street
Hamilton HMEX
Bermuda

 

Canada

George E. Matelich

 

c/o Kelso & Company
320 Park Avenue
24th Floor
New York, NY 10022

 

Managing Director, Kelso & Company, a private equity investment firm,
320 Park Avenue
24th Floor
New York, NY 10022

 

U.S.A.

Philip E. Berney

 

c/o Kelso & Company
320 Park Avenue
24th Floor
New York, NY 10022

 

Managing Director, Kelso & Company, a private equity investment firm,
320 Park Avenue
24th Floor
New York, NY 10022

 

U.S.A.

Frank K. Bynum, Jr.

 

c/o Kelso & Company
320 Park Avenue
24th Floor
New York, NY 10022

 

Managing Director, Kelso & Company, a private equity investment firm,
320 Park Avenue
24th Floor
New York, NY 10022

 

U.S.A.

James J. Connors II

 

c/o Kelso & Company
320 Park Avenue
24th Floor
New York, NY 10022

 

Vice President & General Counsel, Kelso & Company, a private equity investment firm,
320 Park Avenue
24th Floor
New York, NY 10022

 

U.S.A.

Michael B. Lazar

 

c/o Kelso & Company
320 Park Avenue
24th Floor
New York, NY 10022

 

Vice President, Kelso & Company, a private equity investment firm,
320 Park Avenue
24th Floor
New York, NY 10022

 

U.S.A.

41



Frank J. Loverro

 

c/o Kelso & Company
320 Park Avenue
24th Floor
New York, NY 10022

 

Vice President, Kelso & Company, a private equity investment firm,
320 Park Avenue
24th Floor
New York, NY 10022

 

U.S.A.

Howard A. Matlin

 

c/o Kelso & Company
320 Park Avenue
24th Floor
New York, NY 10022

 

Vice President & Chief Financial Officer, Kelso & Company, a private equity investment firm,
320 Park Avenue
24th Floor
New York, NY 10022

 

U.S.A.

Church M. Moore

 

c/o Kelso & Company
320 Park Avenue
24th Floor
New York, NY 10022

 

Associate, Kelso & Company, a private equity investment firm,
320 Park Avenue
24th Floor
New York, NY 10022

 

U.S.A.

Frank T. Nickell

 

c/o Kelso & Company
320 Park Avenue
24th Floor
New York, NY 10022

 

President and Chief Executive Officer, Kelso & Company, a private equity investment firm,
320 Park Avenue
24th Floor
New York, NY 10022

 

U.S.A.

Thomas R. Wall, IV

 

c/o Kelso & Company
320 Park Avenue
24th Floor
New York, NY 10022

 

Managing Director, Kelso & Company, a private equity investment firm,
320 Park Avenue
24th Floor
New York, NY 10022

 

U.S.A.

Michael J. Verrochi

 

80L Washington Square
Norwell, MA 020601

 

Treasurer, VRT Corp., a real estate development corporation,
80L Washington Square
Norwell, MA 020601

 

U.S.A.

Robert F. Irwin

 

Idyll Acres Farm
330 Tom Brown Road
Moorestown, NJ 08057

 

Vice Chairman and Chief Marketing Officer, H2O Technologies, a water purification company,
150 Randall Street
Suite 103
Oakville, Ontario
Canada L6J 1P4

 

U.S.A.

42



John A. Pinto

 

1300 AIA, Suite 100
Apt. 608
Jupiter, FL 33477

 

Private Investor

 

U.S.A.

Paul Thompson III

 

667 Dodds Lane
Gladwyne, PA 19035

 

Managing Director, Credit Suisse First Boston, an investment banking firm
Eleven Madison Avenue
New York, NY 10010

 

U.S.A.

Gene A. Meredith

 

110 Frederick Street
Santa Cruz, CA 95062

 

Private Investor

 

U.S.A.

Peter J. Roselle

 

c/o Tony Corso Accounting Offices of Mark D. Barry
1435 Morris Avenue
Union, NJ 07083

 

Private Investor

 

U.S.A.

David J. Feals

 

236 Gosport Road
Portsmouth, NH 03801

 

Chief Financial Officer, Capital Environmental Resource Inc., a waste services company,
1005 Skyview Drive
Burlington, Ontario
Canada L7P 5B1

 

U.S.A.

Joseph N. Verrochi

 

80L Washington Square
Norwell, MA 020601

 

Private Investor

 

U.S.A.

Joseph C. Roselle

 

56 Gilespie Avenue
Fair Haven, NJ 07704

 

Private Investor

 

U.S.A.

Vincent Apice

 

5 Pine Valley Way
Florham Park, NJ 07932

 

Private Investor

 

U.S.A.

Nicholas Santinelli

 

38 East McClellan Avenue
Livingston, NJ 07039

 

Private Investor

 

U.S.A.

Michelle Roselle

 

130 Royal Palm Way
Boca Raton, FL 33432

 

Private Investor

 

U.S.A.

Veronica Roselle

 

8 Harkay Court
Roseland, NJ 07068

 

Private Investor

 

U.S.A.

Veronica L. Roselle

 

28 Smuggler Grove
Aspen, CO 81611

 

Private Investor

 

U.S.A.

Anthony Corso

 

Accounting Offices of
Mark D. Barry
1435 Morris Avenue
Union, NJ 07083

 

Certified Public Accountant, Accounting Offices of Mark D. Barry
1435 Morris Avenue
Union, NJ 07083

 

U.S.A.

43



Peter T. Roselle

 

847 Flora Street
Elizabeth, NJ 07201

 

Private Investor

 

U.S.A.

Peter A. Roselle

 

c/o Anthony Corso Accounting Offices of Mark D. Barry
1435 Morris Avenue
Union, NJ 07083

 

Private Investor

 

U.S.A.

Ernest Cignarella

 

14 Ivy Court
East Hanover, NJ 07936

 

Private Investor

 

U.S.A.

Joseph Caldeira, Jr.

 

4 Oneida Avenue
Waretown, NJ 08758

 

Private Investor

 

U.S.A.

John P. Pinto

 

774 W. Broad Street
Westfield, NJ 07090

 

Private Investor

 

U.S.A.

Steven Scioscia

 

188 Hillcrest Road
Watchung, NJ 07060

 

Private Investor

 

U.S.A.

Frank Arace

 

12 Cooper Lane
Millington, NJ 07946

 

Private Investor

 

U.S.A.

GWD Management Inc.

        GWD Management Inc. is a corporation incorporated under the laws of the province of Ontario, Canada with its principal business and principal office located at 1455 Lakeshore Road, Suite 201N, Burlington, Ontario, Canada L7S 2J1. The principal business of GWD Management Inc. is investing and investment management.

        The sole stockholder, executive officer and director of GWD Management Inc. is Gary W. DeGroote, a Canadian citizen whose address is 1455 Lakeshore Road, Suite 201N, Burlington, Ontario, Canada L75 2J1. Mr. DeGroote's principal occupation is as the President of GWD Management Inc.

CERI ACPII Limited Partners, L.P

        CERI ACPII Limited Partners, L.P. is a Delaware limited partnership with its principal business and principal office located at 60 Madison Avenue, Suite 710, 7th Floor, New York, New York 10010. The principal business of CERI ACPII Limited Partners, L.P. is venture capital and private equity investment.

        The general partner of CERI ACPII Limited Partners, L.P. is Argentum Investments, LLC, a Delaware limited liability company. Each of Walter H. Barandiaran and Daniel Raynor is a managing member of Argentum Investments, LLC. Mr. Barandiaran is a citizen of Peru. Mr. Raynor is a United States citizen.

        Each of Argentum Investments, LLC, Mr. Barandiaran and Mr. Raynor maintain their principal offices at 60 Madison Avenue, Suite 710, 7th Floor, New York, NY 10010. The principal business of each of Argentum Investments, LLC, Mr. Barandiaran and Mr. Raynor is venture capital and private equity investment.

44



Durkin & Durkin Realty, LLC

        Durkin & Durkin Realty, LLC, is a New Jersey limited liability company with its principal business and principal office located at 1120 Bloomfield Avenue, West Caldwell, NJ 07007. The principal business of Durkin & Durkin Realty, LLC is investing in real estate and in the securities of other entities.

        The sole managing member of Durkin & Durkin Realty, LLC, is Cornelius Durkin, a United States citizen with his business address at 1120 Bloomfield Avenue, West Caldwell, NJ 07007. Cornelius Durkin's principal occupation is as the managing member of Durkin & Durkin Realty, LLC.

Kevin F. Flynn, June 1992 Non-Exempt Trust

        The Kevin F. Flynn, June 1992 Non-Exempt Trust is a trust with its trustee's principal address at 120 North LaSalle Street, Suite 3300, Chicago IL 60602. The sole trustee and beneficiary of the Trust is Kevin F. Flynn, a United States citizen whose business address is 120 North LaSalle Street, Suite 3300, Chicago IL 60602. Mr. Flynn is the Chairman and CEO of Emerald Ventures, a private investment firm with its principal offices at 120 North LaSalle Street, Suite 3300, Chicago IL 60602.

        Gary DeGroote, Argentum Investments, LLC, Walter Barandiaran, Daniel Raynor, Cornelius Durkin and Kevin F. Flynn are collectively referred to herein as the "Related Parties".

        (c)  During the last five years, none of the Reporting Persons and, to the best of the Reporting Persons' knowledge, none of the Related Parties has been convicted in a criminal proceeding (excluding traffic violations and similar misdemeanors).

        (d)  During the last five years, none of the Reporting Persons and, to the best of the Reporting Persons' knowledge, none of the Related Parties has been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction as a result of which such Reporting Person or Related Party is subject to a judgment, decree, or final order enjoining future violations of, or prohibiting or mandating activities subject to federal or state securities laws or finding a violation with respect to such laws.


ITEM III—SOURCE AND AMOUNT OF FUNDS

        The source of funds used by each of GWD Management Inc., CERI ACPII Limited Partners, L.P. and Durkin & Durkin Realty, LLC to purchase the Common Shares owned by them was the relevant entity's working capital. The source of funds used by each other Reporting Person to purchase the Common Shares owned by them was such Reporting Person's personal funds.

        No funds were involved in the formation of the group by the Reporting Persons.


ITEM IV—PURPOSE OF THE TRANSACTION

        On February 5, 2002, the Reporting Persons and certain other investors entered into the Subscription Agreement, pursuant to which such persons agreed to purchase an aggregate of 11,320,754 Preferred Shares. The closing of the purchase of the Preferred Shares occurred on February 6, 2002. Holders of the Preferred Shares do not have any voting or dividend rights with respect to such Preferred Shares. Each Preferred Share is convertible into one Common Share automatically upon approval of such conversion by the holders of the Company's Common Shares. Under the Subscription Agreement, the Company has agreed to hold a special meeting of its shareholders, as promptly as practicable, for the purpose of voting on the Conversion Issuance. Pursuant to the Subscription Agreement, each Reporting Person has agreed to vote all Common Shares held by such Reporting Person in favor of approval of the Conversion Issuance.

45



        Following approval of the Conversion Issuance, there will be no agreements among the Reporting Persons to acquire, dispose of, hold or vote any securities of the Company.

        Other then the matters set forth above, no Reporting Person has any present plans or proposals which relate to, or would result in the occurrence of, any of the transactions or events set forth in subparagraphs (a)-(j) of Item 4 of Schdule 13D.


ITEM V—INTEREST IN SECURITIES OF THE ISSUER

        (a)-(b)The following table sets forth, with respect to each Reporting Person and each Related Party, (i) the aggregate number of Common Shares beneficially owned by each such person, (ii) the percentage of the Common Shares beneficially owned by each such person, (iii) the number of Common Shares as to which such person has sole power to vote or direct the vote, (iv) the number of Common Shares as to which such person has sole power to dispose or direct the disposition, (v) the number of Common Shares as to which such person has shared power to vote or direct the vote, and (vi) the number of Common Shares as to which such person has shared power to dispose or direct the disposition.

46


Shareholder

  Aggregate
Number of
Shares

  Percentage
of Class

  Number of
Shares as to
Which Person
has the Sole
Power to Vote

  Number Shares
as to Which
Person has
the Sole Power
to Dispose

  Number of
Shares as to
Which Person
has Shared
Power to Dispose

  Number of
Shares as to
Which Person
has Shared
Voting Power

 
Michael G. DeGroote   500,000   2.11 % 500,000   500,000   0   0  
Don A. Sanders   1,963,311 (1) 8.29 % 1,082,700   1,082,700   880,611   880,611  
GWD Management Inc.   1,500,000   6.33 % 1,500,000   1,500,000   0   0  
George E. Matelich   625,625   2.64 % 625,625   625,625   0   0  
Philip E. Berney   50,000   0.21 % 50,000   50,000   0   0  
Frank K. Bynum, Jr.   50,000   0.21 % 50,000   50,000   0   0  
James J. Connors II   12,500   0.05 % 12,500   12,500   0   0  
Michael B. Lazar   12,500   0.05 % 12,500   12,500   0   0  
Frank J. Loverro   7,500   0.03 % 7,500   7,500   0   0  
Howard A. Matlin   12,500   0.05 % 12,500   12,500   0   0  
Church M. Moore   3,750   0.02 % 3,750   3,750   0   0  
Frank T. Nickell   625,625   2.64 % 625,625   625,625   0   0  
Thomas R. Wall, IV   100,000   0.42 % 100,000   100,000   0   0  
CERI ACPII Limited Partners, L.P.   1,000,000   4.22 % 1,000,000   1,000,000   0   0  
Michael J. Verrochi   300,000   1.27 % 300,000   300,000   0   0  
Joseph N. Verrochi   200,000   0.84 % 200,000   200,000   0   0  
Robert F. Irwin, IV   420,100 (2) 1.77 % 0   0   410,000 (3) 410,000 (3)
John A. Pinto   500,000   2.11 % 500,000   500,000   0   0  
Joseph J. Caldeira, Jr.   15,000   0.06 % 15,000   15,000   0   0  
John P. Pinto   50,000   0.21 % 50,000   50,000   0   0  
Steven J. Scioscia   25,000   0.11 % 25,000   25,000   0   0  
Paul Thompson III   50,000   0.21 % 50,000   50,000   0   0  
Gene A. Meredith   200,000   0.84 % 200,000   200,000   0   0  
Peter J. Roselle   400,000   1.69 % 400,000   400,000   0   0  
Joseph C. Roselle   125,000   0.53 % 125,000   125,000   0   0  
Vincent Apice   125,000   0.53 % 125,000   125,000   0   0  
Frank Arace   10,000   0.04 % 10,000   10,000   0   0  
Nicholas Santinelli   5,000   0.02 % 5,000   5,000   0   0  
Veronica Roselle   5,000   0.02 % 5,000   5,000   0   0  
Michele Roselle   5,000   0.02 % 5,000   5,000   0   0  
Veronica L. Roselle   5,000   0.02 % 5,000   5,000   0   0  
Anthony Corso   5,000   0.02 % 5,000   5,000   0   0  
Peter T. Roselle   20,000   0.08 % 20,000   20,000   0   0  
Peter A. Roselle   10,000   0.04 % 10,000   10,000   0   0  
Ernest Cignarella   10,000   0.04 % 10,000   10,000   0   0  
David J. Feals   50,000   0.21 % 50,000   50,000   0   0  
Kevin F. Flynn June, 1992 Non-Exempt Trust   850,000   3.59 % 850,000   850,000   0   0  
Durkin & Durkin Realty, LLC   175,000   0.74 % 175,000   175,000   0   0  
Gary DeGroote   1,500,000 (4) 6.33 % 1,500,000   1,500,000   0   0  
Argentum Investments, LLC   1,000,000 (5) 4.22 % 0   0   1,000,000   1,000,000  
Walter Barandiaran   1,000,000 (6) 4.22 % 0   0   1,000,000   1,000,000  
Daniel Raynor   1,000,000 (6) 4.22 % 0   0   1,000,000   1,000,000  
Cornelius Durkin   175,000 (7) 0.74 % 175,000   175,000   0   0  
Kevin F. Flynn   850,000 (8) 3.59 % 850,000   850,000   0   0  

(1)
Don A. Sanders directly owns 1,082,700 shares (the "Sanders Shares") and has the shared power to dispose of or direct the disposition of 880,611 shares (the "Client Shares") of certain of Mr. Sanders' clients (the "Clients") from whom Mr. Sanders has been granted the right to dispose of or direct the disposition of the Client Shares. The Client Shares together with the Sanders Shares reporesent an aggregate of 1,963,311 shares, or 8.29% of the Common Shares. Mr. Sanders has the sole power to vote or to direct the vote, and to dispose of or direct the disposition of, the Sanders Shares and the shared power to dispose of or direct the disposition of the Client Shares.

(2)
Includes 10,100 shares owned by Mr. Irwin's wife with respect to which Mr. Irwin disclaims beneficial ownership.

47


(3)
Consists entirely of shares with respect to which Mr. Irwin and his wife share voting and dispositive power.

(4)
Consists entirely of shares owned by GWD Management Inc.

(5)
Consists entirely of shares owned by CERI ACPII Limited Partners, L.P. with respect to which Argentum Investments, LLC may be deemed to share voting and dispositive power. Argentum Investments, LLC disclaims beneficial ownership of the shares owned by CERI ACPII Limited Partners, L.P.

(6)
Consists entirely of shares owned by CERI ACPII Limited Partners, L.P. with respect to which Walter Barandiaran and Daniel Raynor may be deemed to share voting and dispositive power. Each of Mr. Barandiaran and Mr. Raynor disclaim beneficial ownership of the shares owned by CERI ACPII Limited Partners, L.P.

(7)
Consists entirely of shares owned by Durkin & Durkin Realty, LLC. Cornelius Durkin is the sole managing member of Durkin & Durkin Realty, LLC, and therefore may be deemed to have voting and dispositive power over such shares. Cornelius Durkin disclaims beneficial ownership of the shares owned by Durkin & Durkin Realty, LLC.

(8)
Consists entirely of shares owned by the Kevin F. Flynn, June 1992 Non-Exempt Trust.

        Except stated above, none of the Reporting Persons or, to the best of the Reporting Persons' knowledge, none of the Related Parties are beneficial owners of Common Shares. However, the Reporting Persons may be deemed to be a group within the meaning of Rule 13d-5 under the Act and, therefore, each Reporting Person may be deemed to be the beneficial owner, within the meaning of Rule 13d-3 under the Act, of all of the Commons Shares beneficially owned by each member of such group, or an aggregate of 10,023,411 Common Shares, representing approximately 42.3% of the total outstanding Common Shares.

        (c)  There have been no transactions in the Common Shares within the last sixty (60) days by any Reporting Person or any Related Person.

        (d)  Don A. Sanders has the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of 1,082,700 Common Shares, while the applicable Client has the right to receive or the power to direct the receipt of dividends from or the proceeds from the sale of the applicable Client Shares.

        (e)  Not applicable.

48



ITEM VI—CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WIH RESPECT TO SECURITIES OF AN ISSUER

        Upon the closing of the transactions contemplated by the Subscription Agreement, the Reporting Persons entered into a Registration Rights Agreement with the Company providing the Reporting Persons with certain demand and piggy-back registration rights with respect to the Common Shares issuable upon conversion of the Preferred Shares purchased under the Subscription Agreement.

        On September 24, 2001, the Company granted each of Gary W. DeGroote and Don A. Sanders an option to purchase 40,000 Common Shares. Each such option was granted under the Company's 1999 Stock Option Plan, as amended, and has a five-year term. Each option has an exercise price equal to the closing sale price of the Common Shares on the day before the date of grant, and does not vest until September 24, 2002, at which time it will vest in full.

        On January 10, 2002, the Company granted David J. Feals an option to purchase 250,000 Commmon Shares. The option was granted under the Company's 1999 Stock Option Plan, as amended, and has a five-year term. The option has an exercise price equal to the closing sale price of the Common Shares on the day before the date of grant, and does not vest until January 10, 2004, at which time it will vest in full.

        Except to the extent described in Item 4 or as set forth above, no Reporting Person or, to the best of the Reporting Persons' knowledge, no Related Party has any contracts, arrangements, understandings or relationships (legal or otherwise) with any person with respect to securities issued by the Company.


ITEM VII—MATERIAL TO BE FILED AS EXHIBITS

Exhibit

  Description

1.   Joint Filing Agreement, dated as of February 6, 2002 among the Reporting Persons.
2.   Powers of Attorney executed by the Reporting Persons.
3.   Form of Subscription Agreement, by and among the Company and certain investors.
4.   Capital Environmental Resource Inc. 1999 Stock Option Plan.
5.   Option Agreement, dated as of September 6, 2001, by and between the Company and Gary W. DeGroote.
6.   Option Agreement, dated as of September 6, 2001, by and between the Company and Don A. Sanders.
7.   Option Agreement, dated as of January 4, 2002, by and between the Company and David J. Feals.

49


        After reasonable inquiry, and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

    SIGNATURES

 

 

Don A. Sanders
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

GWD MANAGEMENT, INC.

 

 

By:

Gary W. DeGroote, President
      /s/  JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Michael G. DeGroote
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

George E. Matelich
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Philip E. Berney
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Frank K. Bynum, Jr.
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

James J. Connors II
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

50



 

 

Michael B. Lazar
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Frank J. Loverro
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Howard A. Matlin
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Church M. Moore
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Frank T. Nickell
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Thomas R. Wall, IV
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

CERI ACPII LIMITED PARTNERS, L.P.

 

 

By:

Argentum Investments, LLC
Managing Member

 

 

By:

Walter H. Barandiaran,
Managing Member
      /s/  JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

51



 

 

Michael J. Verrochi
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Robert F. Irwin, IV
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

John A. Pinto
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Paul Thompson III
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Gene A. Meredith
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Peter J. Roselle
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

David J. Feals
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Joseph Verrochi
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

52



 

 

Vincent Apice
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Nicholas Santinelli
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Michelle Roselle
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Veronica Roselle
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Veronica L. Roselle
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Anthony Corso
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Peter T. Roselle
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Peter A. Roselle
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

53



 

 

Ernest Cignarella
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Joseph Caldeira, Jr.
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

John P. Pinto
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Steven Scioscia
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Frank Arace
/s/  
JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Kevin F. Flynn, June 1992 Non-Exempt Trust

 

 

By:

Kevin F. Flynn
Trustee
      /s/  JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

 

 

Durkin & Durkin Realty, LLC

 

 

By:

Cornelius Durkin
Managing Member
      /s/  JONATHAN F. WOLCOTT      
Name: Jonathan F. Wolcott
Title: Attorney-in-Fact

54




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EXHIBIT 1


Schedule 13D Joint Filing Agreement

        The undersigned and each other person executing this joint filing agreement (this "Agreement") agree as follows:

        The undersigned and each other person executing this Agreement are responsible for the timely filing of such Schedule 13D and any amendments thereto, and for the completeness and accuracy of the information concerning such person contained therein; but none of the undersigned or any other person executing this Agreement is responsible for the completeness or accuracy of the information statement concerning any other persons making the filing, unless such person knows or has reason to believe that such information is inaccurate.

        This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which, taken together, shall constitute one and the same instrument.

        In Witness Whereof, the undersigned have caused this Agreement to be signed by their respective officers thereunto duly authorized as of the date set forth below.

Date: February 6, 2002


 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Michael G. DeGroote

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Don A. Sanders

 

 

GWD MANAGEMENT, INC.

 

 

By:

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
        Name: Gary W. DeGroote
        Title: President

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
George E. Matelich

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Philip E. Berney

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Frank K. Bynum, Jr.

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
James J. Connors II


 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Michael B. Lazar

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Frank J. Loverro

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Howard A. Matlin

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Church M. Moore

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Frank T. Nickell

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Thomas R. Wall, IV

2



 

 

CERI ACPII LIMITED PARTNERS, L.P.

 

 

By:

 

Argentum Investments, LLC, Managing Member.

 

 

By:

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
        Name: Walter H. Barandiaran
        Title: Managing Member

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Michael J. Verrochi

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Robert F. Irwin, IV

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
John A. Pinto

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Paul Thompson III

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Gene A. Meredith

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Peter J. Roselle

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
David J. Feals

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Joseph N. Verrochi

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Joseph J. Caldeira, Jr.

3



 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
John P. Pinto

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Steven J. Scioscia

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Joseph C. Roselle

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Vincent Apice

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Frank Arace

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Nicholas Santinelli

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Veronica Roselle

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Michelle Roselle

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Veronica L. Roselle

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Anthony Corso

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Peter T. Roselle

 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Peter A. Roselle

4



 

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
Ernest Cignarella

 

 

KEVIN F. FLYNN NON-EXEMPT TRUST

 

 

By:

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
        Name: Kevin F. Flynn
        Title: Trustee

 

 

DURKIN & DURKIN REALTY, LLC

 

 

By:

 

/s/  
JONATHAN F. WOLCOTT, ATTORNEY-IN-FACT      
        Name: Cornelius Durkin
        Title: Managing Member

5




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EXHIBIT 2


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    GWD Management Inc.

 

 

/s/  
GARY W. DEGROOTE      
Signature
Gary W. DeGroote

Print Name
President

Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Michael G. DeGroote

 

 

/s/  
MICHAEL G. DEGROOTE      
Signature
Michael G. DeGroote

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Don A. Sanders

 

 

/s/  
DON A. SANDERS      
Signature
Don A. Sanders

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    George E. Matelich

 

 

/s/  
GEORGE E. MATELICH      
Signature
George E. Matelich

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Philip E. Berney

 

 

/s/  
PHILIP E. BERNEY      
Signature
Philip E. Berney

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Frank K. Bynum, Jr.

 

 

/s/  
FRANK K. BYNUM, JR.      
Signature
Frank K. Bynum, Jr.

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    James J. Connors II

 

 

/s/  
JAMES J. CONNORS II      
Signature
James J. Connors II

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Michael B. Lazar

 

 

/s/  
MICHAEL B. LAZAR      
Signature
Michael B. Lazar

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Frank J. Loverro

 

 

/s/  
FRANK J. LOVERRO      
Signature
Frank J. Loverro

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Howard A. Matlin

 

 

/s/  
HOWARD A. MATLIN      
Signature
Howard A. Matlin

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Church M. Moore

 

 

/s/  
CHURCH M. MOORE      
Signature
Church M. Moore

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Frank T. Nickell

 

 

/s/  
FRANK T. NICKELL      
Signature
Frank T. Nickell

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Thomas R. Wall, IV

 

 

/s/  
THOMAS R. WALL, IV      
Signature
Thomas R. Wall, IV

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    CERI ACPII Limited Partners, L.P.

 

 

/s/  
ARGENTUM INVESTMENTS, LLC      
Signature
By: /s/ WALTER H. BARANDIARAN

Print Name: Walter H. Barandiaran
Print Title: Managing Member


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Michael J. Verrochi

 

 

/s/  
MICHAEL J. VERROCHI      
Signature
Michael J. Verrochi

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Joseph N. Verrochi

 

 

/s/  
JOSEPH N. VERROCHI      
Signature
Joseph N. Verrochi

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Robert F. Irwin, IV

 

 

/s/  
ROBERT F. IRWIN, IV      
Signature
Robert F. Irwin, IV

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    John A. Pinto

 

 

/s/  
JOHN A. PINTO      
Signature
John A. Pinto

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Peter J. Roselle

 

 

/s/  
PETER J. ROSELLE      
Signature
Peter J. Roselle

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Joseph C. Roselle

 

 

/s/  
JOSEPH C. ROSELLE      
Signature
Joseph C. Roselle

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Vincent Apice

 

 

/s/  
VINCENT APICE      
Signature
Vincent Apice

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Nicholas Santinelli

 

 

/s/  
NICHOLAS SANTINELLI      
Signature
Nicholas Santinelli

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Michelle Roselle

 

 

/s/  
MICHELLE ROSELLE      
Signature
Michelle Roselle
Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Veronica Roselle

 

 

/s/  
VERONICA ROSELLE      
Signature
Veronica Roselle

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Veronica L. Roselle

 

 

/s/  
VERONICA L. ROSELLE      
Signature
Veronica L. Roselle

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Anthony Corso

 

 

/s/  
ANTHONY CORSO      
Signature
Anthony Corso

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Peter T. Roselle

 

 

/s/  
PETER T. ROSELLE      
Signature
Peter T. Roselle

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Peter A. Roselle

 

 

/s/  
PETER A. ROSELLE      
Signature
Peter A. Roselle

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Ernest Cignarella

 

 

/s/  
ERNEST CIGNARELLA      
Signature
Ernest Cignarella

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Joseph Caldeira, Jr.

 

 

/s/  
JOSEPH CALDEIRA, JR.      
Signature
Joseph Caldeira, Jr.

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    John P. Pinto

 

 

/s/  
JOHN P. PINTO      
Signature
John P. Pinto

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Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Steven Scioscia

 

 

/s/  
STEVEN SCIOSCIA      
Signature
Steven Scioscia

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Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Frank Arace

 

 

/s/  
FRANK ARACE      
Signature
Frank Arace

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Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Paul Thompson III

 

 

/s/  
PAUL THOMPSON III      
Signature
Paul Thompson III

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Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Gene A. Meredith

 

 

/s/  
GENE A. MEREDITH      
Signature
Gene A. Meredith

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    David J. Feals

 

 

/s/  
DAVID J. FEALS      
Signature
David J. Feals

Print Name

 

 


Print Title (if applicable)


LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Kevin F. Flynn, June 1992 Non-Exempt Trust

 

 

/s/  
KEVIN F. FLYNN      
Signature
Kevin F. Flynn

Print Name
Trustee

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LIMITED POWER OF ATTORNEY

        Know all by these presents, that the undersigned hereby constitutes and appoints Jonathan F. Wolcott the undersigned's true and lawful attorney-in-fact to:

    (1)
    execute for and on behalf of the undersigned, the Schedule 13D to be filed with the United States Securities and Exchange Commission by the Investors (as such term is defined under the Subscription Agreement dated as of February 5, 2002 by and among Capital Environmental Resource Inc. and the Investors named therein), together with any documents required to be filed therewith (including but not limited to any Joint Filing Agreement) (collectively, the "Schedule 13D");

    (2)
    do and perform any and all acts for and on behalf of the undersigned which may be necessary or desirable to complete and execute such Schedule 13D and timely file such Schedule 13D with the United States Securities and Exchange Commission and any stock exchange or similar authority; and

    (3)
    take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the undersigned, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Limited Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact's discretion.

        The undersigned hereby grants to such attorney-in-fact full power and authority to do and perform any and every act and thing whatsoever requisite, necessary, or proper to be done in the exercise of any of the rights and powers herein granted, as fully to all intents and purposes as the undersigned might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that such attorney-in-fact, or such attorney-in-fact's substitute or substitutes, shall lawfully do or cause to be done by virtue of this power of attorney and the rights and powers herein granted. The undersigned acknowledges that the foregoing attorney-in-fact, in serving in such capacity at the request of the undersigned, is not assuming any of the undersigned's responsibilities to comply with Section 13 of the Securities Exchange Act of 1934, as amended.

        IN WITNESS WHEREOF, the undersigned has caused this Limited Power of Attorney to be executed as of this 6th day of February, 2002.

    Durkin & Durkin Realty, LLC

 

 

/s/  
CORNELIUS DURKIN      
Signature
Cornelius Durkin

Print Name
Managing Member

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EX-3 5 a2069456zex-3.htm EX 3 Prepared by MERRILL CORPORATION
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EXHIBIT 3


SUBSCRIPTION AGREEMENT

        AGREEMENT made as of this        day of February, 2002 (the "Agreement"), by and among Capital Environmental Resource Inc., a corporation incorporated under the laws of the Province of Ontario (the "Company"), and the persons listed on Annex A hereto (each individually an "Investor" and collectively the "Investors").


W I T N E S S E T H:

        WHEREAS, the Company has entered into a Share Purchase Agreement, dated as of December 11, 2001, with the holders of the capital stock of Waste Services Inc. (the "Waste Services Agreement") which provides for the Company's acquisition of Waste Services Inc. in a share purchase transaction;

        WHEREAS, in part to finance the acquisition of Waste Services Inc. pursuant to the Waste Services Agreement, the Company wishes to issue and sell to the Investors, and the Investors wish to purchase from the Company, upon the terms and subject to the conditions set forth herein, certain authorized but unissued shares of the Company's Series 1 Preferred Stock having the rights and preferences set forth in the resolutions of the Board of Directors of the Company attached as Annex B hereto (the "Series 1 Preferred Shares").

        NOW, THEREFORE, in consideration of the premises and the mutual agreements and covenants hereinafter set forth, the Investors and the Company hereby agree as follows (capitalized terms used in this Agreement shall, unless otherwise defined herein, have the meanings ascribed to them in the Glossary attached as Annex C hereto).


SECTION 1

TERMS OF PURCHASE AND ISSUANCE

        1.1    Authorization of Sale of Shares.    The Company has authorized the issuance and sale to the Investors of up to an aggregate of 11,320,754 Series 1 Preferred Shares (such shares, the "Shares") for a purchase price of US $2.65 per Share (the "Per Share Purchase Price").

        1.2    Sale and Purchase.    At the Closing (as defined in Section 1.3(a) hereof) and subject to the terms and conditions herein set forth, the Company shall issue and sell to each Investor, and each Investor shall purchase from the Company, the number of Shares set forth on the Investor's signature page hereto for the purchase price (the "Purchase Price") set forth on the Investor's signature page hereto.

        1.3    Closing.    

            (a)  The closing (the "Closing") of the sale and purchase of the Shares shall take place at the offices of Blake, Cassels & Graydon at 10:00 A.M. local time, as promptly as practicable (and in any event no later than the third business day) after the satisfaction or waiver of all the conditions set forth in Sections 4 and 5 hereof (other than those conditions that will be satisfied at or concurrent with the Closing), or at such other time, date or place as a Majority in Interest of the Investors and the Company may agree (the date upon which the Closing occurs, the "Closing Date"). At the Closing, the Company will deliver to each Investor a share certificate issued in such Investor's name representing the number of Shares to be purchased by such Investor against payment of the Purchase Price therefor in immediately available funds by or on behalf of the Investor to the Company. All transactions occurring at the Closing shall be deemed to have occurred simultaneously, and no one transaction shall be deemed to be complete until all transactions are complete.


            (b)  In the event that this Agreement has been terminated with respect to any Investor pursuant to Section 8.1(e) or any Investor fails to perform its obligations at the Closing (a "Terminated Investor"), the Company may designate a Person or Persons (each a "Substitute Investor") to purchase the Shares to be purchased by such Investor at the Closing, and upon such Substitute Investor agreeing in writing to purchase such allocated Shares and be bound by the terms hereof, such Substitute Investor shall become a party to this Agreement as if he were an original Investor and the Company shall sell such allocated Shares to such Substitute Investor. The parties hereto acknowledge and agree that Annex A shall updated from time to time between the date hereof and the Closing to replace any Terminated Investors with Substitute Investors.


SECTION 2

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

        The Company represents and warrants to each Investor, as of the date hereof and as of the Closing Date, as follows:

        2.1    Organization and Qualification.    The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the Province of Ontario and has the requisite corporate power and authority to carry on its business as it is now being conducted.

        2.2    Capitalization.    

            (a)  The authorized capital of the Company consists of (i) an unlimited number of Common Shares (the "Common Shares") and (ii) an unlimited number of Preferred Shares (the "Preferred Shares"). Of such authorized capital stock, (i) 23,696,627 Common Shares are issued and outstanding, all of which are validly issued and are fully paid, nonassessable and free of preemptive rights, (ii) no Preferred Shares are issued and outstanding and (iii) an unlimited number of Series 1 Preferred Shares, which are convertible in certain circumstances on a one-for-one basis into Common Shares, have been authorized but none of the Series 1 Preferred Shares have been issued, and (iv) 3,240,014 Common Shares are available for issuance pursuant to the exercise of outstanding options and warrants to purchase Common Shares. Assuming (i) the exercise of all outstanding options and warrants to purchase Common Shares, (ii) the potential issuance of 970,000 Common Shares pursuant to the Waste Services Agreement, and (iii) the issuance of 11,320,754 Common Shares upon conversion of the Shares, there would be 39,227,395 Common Shares issued and outstanding as of the date hereof.

            (b)  Other than as set forth in subsection 2.2(a) above, certain rights issued pursuant to the Rights Agreement between the Company and American Stock Transfer & Trust Company (the "Rights Agreement"), there are no outstanding options, warrants, subscriptions, calls, convertible securities or other rights, agreements, arrangements or commitments (contingent or otherwise) (including any right of conversion or exchange under any outstanding security, instrument or other agreement) obligating the Company or any of its direct or indirect subsidiaries to issue, deliver or sell, or cause to be issued, delivered or sold, any shares or obligating them to grant, extend or enter into any such agreement or commitment. Other than the obligations of the Company pursuant to the Waste Services Agreement, there are no outstanding contractual obligations of the Company or any of its direct or indirect subsidiaries to repurchase, redeem or otherwise acquire any shares or make any investment (in the form of a loan, capital contribution or otherwise) in any other Person other than a subsidiary of the Company.

        Upon consummation of each of the Closing as contemplated hereby, including receipt by the Company of the Purchase Price payable pursuant to Section 1.2 hereof, the Shares purchased by each Investor will be validly issued, fully paid and nonassessable. The Common Shares issuable upon conversion of the Shares (the "Underlying Common Shares") have been duly authorized and upon

2


issuance of the Underlying Common Shares upon conversion of the Shares in accordance with their terms, such Underlying Common Shares will be validly issued, fully paid and nonassessable.

        2.3    Power and Authority; Non-contravention; Government Approvals.    

            (a)    Power and Authority.    The Company has all requisite corporate power and authority to enter into this Agreement and the Ancillary Documents and to consummate the transactions contemplated hereby and thereby. This Agreement, the Ancillary Documents and the transactions contemplated hereby and thereby have been duly approved by the Board of Directors of the Company. No other corporate proceedings on the part of the Company are necessary to authorize the execution and delivery of this Agreement and the Ancillary Documents or the consummation by the Company of the transactions contemplated hereby and thereby. This Agreement has been, and when executed and delivered in accordance with the terms hereof the Ancillary Documents will have been, duly executed and delivered by the Company. This Agreement constitutes, and when executed and delivered in accordance with the terms hereof the Ancillary Documents will constitute, valid and binding obligations of the Company, enforceable against it in accordance with their respective terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws relating to enforcement of creditors' rights generally and by general equitable principles. Neither the Company nor any of its subsidiaries is in violation of any of the provisions of their respective articles, bylaws or equivalent organizational documents in any material respect.

            (b)    Non-contravention.    The execution, delivery and performance of this Agreement and the Ancillary Documents by the Company: (i) will not violate or conflict with any provisions of the articles or bylaws of the Company or any of its subsidiaries, (ii) will not conflict with or constitute a violation of any applicable law, order, injunction, regulation or ruling of any governmental authority applicable to the Company or any of its subsidiaries or by which the Company or any of its subsidiaries or any of their respective properties or assets are bound, and (iii) will not, either alone or with the giving of notice or the passage of time, or both, modify, violate, conflict with or accelerate the performance required by any agreement, note, license, franchise, permit or other instrument and will not result in the creation or imposition of (or the obligation to create or impose) any Lien on any of the Company's or any of its subsidiaries' assets.

            (c)    Approvals.    Except for (i) compliance with any applicable requirements of the HSR Act and the Canadian Competition Act, (ii) compliance with any applicable requirements of the Securities Act, Exchange Act, Ontario Securities Act and the rules and regulations of Nasdaq, (iii) such filings as may be required under any applicable state, blue sky or Canadian provincial securities laws and (iv) compliance with the applicable requirements of the Investment Canada Act (the filings and approvals referred to in clauses (i) through (iv) being herein referred to collectively as the "Company Required Statutory Approvals"), and except for any required approvals under the Credit Facility (as defined in Section 2.9 hereof), no declaration, filing or registration with, or notice to, or authorization, consent, approval, order or permit of, any governmental or regulatory body or authority or any other Person is necessary for the execution and delivery of this Agreement and the Ancillary Documents by the Company or the consummation by the Company of the transactions contemplated hereby and thereby except to the extent that the failure to obtain any such authorization, consent, approval or order or to make any such registration, declaration, filing or notice, would not have a Company Material Adverse Effect or a material adverse effect on the validity, binding effect or enforceability of this Agreement or the Ancillary Documents or the ability of the Company to perform its obligations hereunder or thereunder.

        2.4    SEC Reports; Financial Statements.    

            (a)  Since May 3, 1999, the Company has filed with the SEC all forms, statements, reports and documents (including all exhibits, post-effective amendments and supplements thereto)

3


    required to be filed by it under each of the Securities Act and the Exchange Act (collectively, the "Company SEC Reports"), all of which complied when filed in all material respects with all applicable requirements of the appropriate act and the rules and regulations thereunder. As of their respective dates, the Company SEC Reports did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

            (b)  Each of the consolidated financial statements included in the Company SEC Reports, together with the related notes and schedules (collectively, the "Company Financial Statements"), has been prepared in accordance with GAAP applied on a consistent basis, and fairly presents the consolidated financial position of the Company and its subsidiaries as of the respective dates thereof and the results of their operations and cash flow for the periods then ended, subject, in the case of unaudited interim financial statements, to normal year-end adjustments (none of which the Company reasonably believes are or will be material in amount) and the omission of footnotes.

        2.5    Absence of Undisclosed Liabilities.    Except as disclosed in the Company SEC Reports or as set out in Section 2.5 of the Disclosure Schedule, neither the Company nor any of its subsidiaries had, at December 31, 2000 or has incurred since that date, any Liabilities, except for (a) Liabilities which are reflected, accrued or reserved against in the Company Financial Statements contained in the Company SEC Reports filed prior to the date hereof or reflected in the notes thereto, (b) current Liabilities which were incurred after December 31, 2000 in the ordinary course of business and consistent with past practice, (c) Liabilities which are of a nature not required to be reflected in the Company Financial Statements in accordance with GAAP consistently applied and which were incurred in the ordinary course of business and (d) other Liabilities in an aggregate amount not exceeding US $500,000.

        2.6    Absence of Certain Changes or Events.    Except as disclosed in the Company SEC Reports, since December 31, 2000, the business of the Company and its subsidiaries has been conducted in the ordinary course consistent with past practice and there has not been any event, occurrence or development that has had, or could reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

        2.7    Litigation.    There are no claims, suits, actions or proceedings pending or, to the knowledge of the Company, threatened against, relating to or affecting the Company, before any court, governmental department, commission, agency, instrumentality or authority, or any arbitrator that seek a remedy (at law or in equity) as a result of or otherwise in connection with this Agreement and the transactions contemplated hereby. Neither the Company nor any of its subsidiaries nor any of their respective properties or assets is subject to any judgment, decree, injunction, rule or order of any court, governmental department, commission, agency, instrumentality or authority or arbitrator which prohibits or restricts the consummation of the transactions contemplated hereby.

        2.8    Environmental Matters.    The Company and its subsidiaries conduct and have conducted their businesses in material compliance with all applicable Environmental Laws, including, without limitation, having all material permits, licenses and other approvals and authorizations necessary for the operation of their businesses. None of the properties currently or formerly owned or operated by the Company or any of its subsidiaries contain any Hazardous Substance, and no Hazardous Substance has been disposed of at or released from any such properties, as a result of any activity of the Company or any of its subsidiaries other than in material compliance with applicable Environmental Laws and, to the knowledge of the Company, no such condition exists on or with respect to any of such properties as a result of any activity by any other Person. Except as reflected, accrued or reserved against in the Company Financial Statements, neither the Company, nor its subsidiaries, nor any of their respective properties or assets are subject to any Liabilities relating to any suit, settlement, court order,

4



administrative order, regulatory requirement, judgment or claim asserted or arising under any Environmental Law. To the knowledge of the Company, there are no and have not been any investigations or proceedings in which it is alleged that the Company, its subsidiaries, or any of their predecessors, are potentially responsible for a clean-up or remediation of lands contaminated with a Hazardous Substance or for any other remedial or corrective action under an Environmental Law. There are no proceedings pending or, to the Company's knowledge, threatened to revoke, change or limit any permits, licenses, approvals or other authorizations required under any Environmental Law for the operation of the Company and its subsidiaries.

        2.9    Title to and Condition of Assets.    Each of the Company and its subsidiaries has good and marketable title to, or, in the case of leased properties and assets, has good and valid leasehold interests in, all of its tangible properties and assets, real, personal and mixed, used or held for use in, or which are necessary to conduct, the business of the Company and its subsidiaries as currently conducted, free and clear of all Liens, except for Liens arising under the Company's Second Amended and Restated Credit Agreement and Term Loan Agreement dated as of November 26, 1999, as amended (the "Credit Facility") and other liens arising in the ordinary course of business, none of which are with respect to obligations that are material in amount.

        2.10    Insurance.    The Company and each of its subsidiaries has in effect insurance coverage, including directors and officers' liability insurance, with reputable insurers which, in respect of amounts, premiums, types and risks insured, constitutes reasonably adequate coverage against all risks customarily insured against by companies comparable in size and operations to the Company and its subsidiaries. Neither the Company nor any of its subsidiaries has received any notice of cancellation of any insurance policy or binder currently in effect.

        2.11    No Violation of Law; Licenses; Permits and Registration.    Neither the Company nor any of its subsidiaries is in material violation of, or has been given notice or been charged with, or is being investigated with respect to, any material violation of, any law, statute, order, rule, regulation, ordinance or judgment of any governmental or regulatory body or authority or arbitration panel. Each of the Company and its subsidiaries has all material permits, licenses, approvals, authorizations of and registrations under all Federal, state, local, provincial and foreign laws applicable to it, and from all applicable governmental authorities as are required by the Company and its subsidiaries to carry on their respective businesses as currently conducted.

        2.12    Proxy Statement.    The proxy statement (the "Proxy Statement") to be distributed in connection with the Company's meeting of stockholders (the "Special Meeting") to vote upon the issuance to the Investors of Underlying Common Shares upon conversion of the Shares (the "Conversion Issuance") will, at the time of mailing of the Proxy Statement and any amendments or supplements thereto, and at the time of such Special Meeting, (i) state the nature of the Conversion Issuance in sufficient detail to permit the stockholders to form a reasoned judgment thereon and (ii) comply as to form and content with all applicable laws, except that no representation is made by the Company with respect to information supplied by the Investors for inclusion therein.

        2.13    Non-competition Agreements.    Except as disclosed in the Company SEC Reports or as set out in Section 2.13 of the Disclosure Schedule, neither the Company nor any subsidiary of the Company is a party to any agreement which purports to restrict or prohibit in any material respect any of them or any corporation affiliated with any of them from, directly or indirectly, engaging in any business involving the collection, interim storage, transfer, recovery, processing, recycling, marketing or disposal of rubbish, garbage, paper, textile wastes, liquid and other wastes or any other material business currently engaged in by the Company or any of its subsidiaries. None of the Company's officers or key employees is a party to any agreement which, by virtue of such person's relationship with the Company, restricts in any material respect the Company or any subsidiary of the Company from, directly or indirectly, engaging in any of the businesses described above.

5



        2.14    Brokers and Finders.    Except for the fees and expenses payable to Sanders Morris Harris, Inc. pursuant to an engagement letter with the Company dated January    , 2002 (the "SMH Engagement Letter"), the Company is not a party to or bound by any contract, arrangement or understanding with, or subject to any claim by, any person or firm which may result in an obligation of the Company to pay any finder's fees, brokerage or agent commissions or other like payments in connection with the transactions contemplated hereby.

        2.15    Material Contracts.    Neither the Company nor any of its subsidiaries is in material breach or violation of or in default in the performance or observance of any terms or provisions of, and no event has occurred which, with notice, lapse of time or action by a third party, could result in a default under any contract, agreement, lease or deed that is material to the business or operation of the Company and its subsidiaries taken as a whole (a "Material Contract"). To the knowledge of the Company, no other party to any Material Contract is in material breach thereof or default thereunder.

        2.16    Securities Law Compliance.    Assuming the representations and warranties of the Investors set forth in Section 3 hereof are true and correct in all material respects, the issuance and sale of the Shares pursuant to this Agreement will be exempt from the prospectus filing, registration for trading and/or registration requirements of applicable Federal, state, and provincial securities laws.

        2.17    Disclosure.    No representation or warranty by the Company in this Agreement and no statement contained in the schedules or exhibits or in any certificate to be delivered pursuant to this Agreement, contains or will contain any untrue statement of a material fact or omits or will omit to state any material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. There is no material fact known to the Company and not disclosed in this Agreement, the Disclosure Schedule or the Company SEC Reports that could be reasonably likely to have a Company Material Adverse Effect or a material adverse effect on the validity, binding effect or enforceability of this Agreement or the Ancillary Documents or the ability of the Company to perform its obligations hereunder or thereunder.

        2.18    Company Shareholders' Approval.    The vote of shareholders of the Company required for approval of the Conversion Issuance is the affirmative vote of the majority of votes cast on the proposal at the Special Meeting.

        2.19    Opinion of Financial Advisor.    Houlihan Lokey Howard & Zukin Financial Advisors, Inc. has rendered an opinion to the Board of Directors of the Company or a duly authorized committee thereof to the effect that, as of January    , 2002, from a financial point of view, the proposed issuance of Shares is fair to the Company; it being understood and acknowledged by the Investors that such opinion has been rendered for the benefit of the Board of Directors of the Company and is not intended to, and may not, be relied upon by the Investors.

        2.20    Rights Agreement.    The Company, including its Board of Directors, has irrevocably taken all actions necessary to (i) render the Rights Agreement inapplicable to the transactions contemplated by this Agreement and (ii) ensure that (x) none of the Investors or the Investors as a group are an Acquiring Person (as defined in the Rights Agreement) pursuant to the Rights Agreement as a result of the execution of this Agreement and the consummation of the transactions contemplated hereby and (y) a Distribution Date, a Triggering Event or a Share Acquisition Date (as such terms are defined in the Rights Agreement) does not occur by reason of the approval, execution or delivery of this Agreement, the announcement thereof or the consummation of the transactions contemplated hereby.

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SECTION 3

INVESTOR REPRESENTATIONS

        3.1    Representations.    Each Investor, severally and not jointly, hereby represents and warrants to the Company with respect to such Investor's purchase of Shares hereunder that:

            (a)  The Investor is resident in the jurisdiction set forth opposite such Investor's name on such Investor's signature page hereto.

            (b)  The execution of this Agreement and each of the Ancillary Documents to which the Investor is a party has been duly authorized by all necessary action on the part of the Investor, has been duly executed and delivered by the Investor, and constitutes a valid, binding agreement of the Investor, enforceable in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws relating to enforcement of creditors' rights generally and by general equitable principles.

            (c)  Neither the execution and delivery of this Agreement or the Ancillary Documents to which the Investor is a party, or any other document or instrument to be executed in connection with the transactions contemplated thereby, by the Investor, nor the consummation of the transactions contemplated thereby, nor the performance by the Investor of its covenants and agreements thereunder, (i) violates any law, statute, ordinance, regulation, order, judgment or decree of any court or other governmental authority applicable to the Investor, or (ii) violates or will violate, or conflicts with or will conflict with, or results in or will result in any breach of any of the terms of, or constitutes or will constitute a default under, any contract or agreement to which the Investor is a party or by which the Investor or any of its assets is subject to or bound.

            (d)  Except as set forth on Exhibit A to the SMH Engagement Letter, no broker, finder, agent or similar intermediary has acted on behalf of the Investor in connection with this Agreement or the transactions contemplated hereby and except pursuant to the SMH Engagement Letter, there are no brokerage commissions, finder's fees or similar fees or commissions payable in connection therewith.

            (e)  The Investor acknowledges that it has been advised that it and/or the Company may be required to provide to applicable securities regulatory authorities a list setting forth the identities of the beneficial purchasers of the Shares and the Investor will provide to the Company and applicable securities regulatory authorities all such information concerning the Investor as may be required to comply with applicable securities laws.

            (f)    The decision of the Investor to execute this Subscription Agreement has not been based upon any verbal or written representations as to fact or otherwise made by or on behalf of the Company (other than the representations and warranties of the Company herein) and this decision has been based entirely upon publicly available information concerning the Company.

            (g)  The Investor has not received any offering memorandum (as such term is defined in Section 1.1(2) of Ontario Securities Commission Rule 14-501) and the sale of the Shares (including the Underlying Common Shares) was not accompanied by any advertisement in printed media of general or regular public circulation, or on radio, television or any form of electronic display (including, without limitation, the Internet).

7


        3.2    Representations by US Investors.    Each Investor resident in the United States, severally and not jointly, hereby represents to the Company with respect to such Investor's purchase of Shares hereunder that:

            (a)  The Investor is acquiring the Shares (including the Underlying Common Shares) for its own account, for investment, and not with a view to any "resale" or "distribution" thereof within the meaning of the Securities Act.

            (b)  The Investor understands that because the Shares and the Underlying Common Shares have not been registered under the Securities Act, it cannot dispose of any or all of such securities unless such securities are subsequently registered under the Securities Act or exemptions from such registration are available. The Investor understands that each certificate or other instrument representing the Shares and the Underlying Common Shares will bear the following legend or one substantially similar thereto:

      The securities represented by this certificate have not been registered under the United States Securities Act of 1933 or qualified for distribution pursuant to a prospectus under the Securities Act (Ontario). These securities have been acquired for investment and not with a view to distribution or resale, and may not be sold or otherwise transferred to residents of the United States without an effective registration statement for such securities under the United States Securities Act of 1933 or to residents of Canada without compliance with prospectus and registration requirements of applicable provincial securities laws, unless there is available to the transferor an exemption from such registration, and/or prospectus filing and registration requirements. The Company may request an opinion of counsel as to the availability of any such exemption.

            (c)  The Investor is sufficiently knowledgeable and experienced in the making of investments so as to be able to evaluate the risks and merits of its investment in the Company, and is able to bear the economic risk of loss of its investment in the Company.

            (d)  The Investor believes it has received all the information it considers necessary or appropriate for deciding whether to purchase the Shares (including the Underlying Common Shares). The Investor has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Shares (inclusing the Underlying Common Shares) and the business, properties and financial condition of the Company. The foregoing, however, does not limit or modify the representations and warranties of the Company in Section 2 or the right to the Investor to rely thereon.

            (e)  The Investor is an "accredited investor" within the meaning of SEC Rule 501 of Regulation D of the Securities Act, as presently in effect and within the meaning of Section 1.1 of Ontario Securities Commission Rule 45-501 (a copy of which is attached hereto as Annex D) and is purchasing the Shares (including the Underlying Common Shares) hereunder as principal, not for the benefit of any other person and not with a view to the sale or distribution of all or any part of the Shares or the Underlying Common Shares.

            (f)    The Investor has been advised that the Shares and the Underlying Common Shares have not been registered under the Securities Act or under the "blue sky" laws of any jurisdiction and that the Company, in issuing such securities is relying upon, among other things, the representations and warranties of the Investor contained in this Section 3.

            (g)  The Investor acknowledges that the Company will be issuing the Shares (including the Underlying Common Shares) under an exemption from the prospectus filing and registration requirements of the Ontario Securities Act, that the resale or other disposition of all or any part of such securities will be restricted by the Ontario Securities Act, that it has been advised to consult its legal advisers in connection with resale restrictions that will pertain to the Shares and the

8



    Underlying Common Shares, and that it is solely responsible for compliance with applicable resale restrictions.

        3.3    Representations by Ontario Investors.    Each Investor resident in Ontario, severally and not jointly, hereby represents and warrants to the Company with respect to such Investor's purchase of Shares hereunder that:

            (a)  The Investor acknowledges that the Company will be issuing the Shares (including the Underlying Common Shares) under an exemption from the prospectus filing and registration requirements of the Ontario Securities Act, that the resale or other disposition of all or any part of such securities will be restricted by the Ontario Securities Act, that it has been advised to consult its legal advisers in connection with resale restrictions that will pertain to the Shares, and that it is solely responsible for compliance with applicable resale restrictions.

            (b)  The Investor acknowledges that the Shares and the Underlying Common Shares may only be resold in compliance with applicable securities laws.

            (c)  The Investor agrees to comply with any relevant securities legislation, order or policy applicable to the Investor concerning the purchase of and holding of the Shares and the Underlying Common Shares by the Investor and concerning any resale of all or any part of such securities by the Investor. The Investor understands that each certificate or other instrument representing the Shares and the Underlying Common Shares will bear the following legend or one substantially similar thereto:

      The securities represented by this certificate have not been registered under the United States Securities Act of 1933 or qualified for distribution pursuant to a prospectus under the Securities Act (Ontario). These securities have been acquired for investment and not with a view to distribution or resale, and may not be sold or otherwise transferred to residents of the United States without an effective registration statement for such securities under the United States Securities Act of 1933 or to residents of Canada without compliance with prospectus and registration requirements of applicable provincial securities laws, unless there is available to the transferor an exemption from such registration, and/or prospectus filing and registration requirements. The Company may request an opinion of counsel as to the availability of any such exemption.

            (d)  The Investor is an "accredited investor" within the meaning of Section 1.1 of Ontario Securities Commission Rule 45-501 (a copy of which is attached hereto as Annex D), is purchasing the Shares (inclusing the Underlying Common Shares) hereunder as principal, not for the benefit of any other person and not with a view to the sale or distribution of all or any part of the Shares or the Underlying Common Shares.

            (e)  The Investor will execute and deliver within the applicable time periods all documentation as may be required to be executed by the Investor by applicable securities laws to permit the purchase of the Shares by the Investor on the terms herein set forth.

            (f)    The Investor is capable of assessing the proposed investment as a result of the Investor's financial or investment experience or as a result of advice received from a registered person other than the Company or an affiliate thereof, and is able to bear the economic risk of loss of its investment.

            (g)  The Investor is not a "U.S. Person" (as that term is defined in Rule 902(k) of Regulation S promulgated under the Securities Act, which definition includes, but is not limited to, an individual resident in the United States, an estate or trust of which any executor or administrator or trustee, respectively, is a U.S. Person and any partnership or corporation organized or incorporated under the laws of the United States) and is not acquiring the Shares

9



    (including the Underlying Common Shares) for the account or benefit of a U.S. Person or a Person in the United States.

            (h)  The Investor will not offer or sell the Shares or the Underlying Common Shares in the United States or to a U.S. Person unless such securities are registered under the Securities Act or an exemption from the registration requirements under the Securities Act and the securities laws of all applicable states of the United States is available

        3.4    Representations by Québec Investors.    Each Investor resident in Québec, severally and not jointly, hereby represents and warrants to the Company with respect to such Investor's purchase of Shares hereunder that:

            (a)  The purchase of the Shares (including the Underlying Common Shares) was not made pursuant to any advertisement in printed media of general or regular public circulation, or on radio, television or any form of electronic display (including, without limitation, the Internet).

            (b)  The Investor acknowledges that the Company will be issuing the Shares (including the Underlying Common Shares) hereunder under an exemption from the prospectus filing and registration requirements of the Ontario Securities Act and the Securities Act (Québec) and that the resale or other disposition of all or any part of such securities will be restricted by the Ontario Securities Act and the Securities Act (Québec), that it has been advised to consult its legal advisers in connection with resale restrictions that will pertain to the Shares and the Underlying Shares, and that it is solely responsible for compliance with applicable resale restrictions.

            (c)  The Investor acknowledges that the Shares and the Underlying Shares may only be resold in compliance with applicable securities laws.

            (d)  Each Investor is purchasing the Shares and the Underlying Shares as principal for its own account for investment, not for the benefit of any other person, and the Shares have an aggregate purchase price to the Investor of not less than CDN $150,000.

            (e)  The Investor agrees to comply with any relevant securities legislation, order or policy applicable to the Investor concerning the purchase of and holding of the Shares and the Underlying Shares by the Investor and concerning any resale of all or any part of such securities by the Investor. Each Investor further acknowledges that it has been advised to consult its own legal advisers with respect to applicable resale restrictions and that it will be fully responsible for the compliance with such restrictions. The Investor understands that each certificate or other instrument representing the Shares and the Underlying Shares will bear the following legend or one substantially similar thereto:

      The securities represented by this certificate have not been registered under the United States Securities Act of 1933 or qualified for distribution pursuant to a prospectus under the Securities Act (Ontario). These securities have been acquired for investment and not with a view to distribution or resale, and may not be sold or otherwise transferred to residents of the United States without an effective registration statement for such securities under the United States Securities Act of 1933 or to residents of Canada without compliance with prospectus and registration requirements of applicable provincial securities laws, unless there is available to the transferor an exemption from such registration, and/or prospectus filing and registration requirements. The Company may request an opinion of counsel as to the availability of any such exemption.

            (f)    The Investor is an "accredited investor" within the meaning of Section 1.1 of Ontario Securities Commission Rule 45-501 (a copy of which is attached hereto as Annex D), is purchasing the Shares (including the Underlying Common Shares) hereunder as principal, not for the benefit

10


    of any other person and not with a view to the sale or distribution of all or any part of the Shares or the Underlying Common Shares).

            (g)  The Investor, if it is a corporation, has not been established solely to permit the purchase of the Shares (including the Underlying Common Shares) without a prospectus in reliance on an exemption from the prospectus requirements of applicable securities legislation.

            (h)  The Investor will execute and deliver within the applicable time periods all documentation as may be required to be executed by the Investor by applicable securities laws to permit the purchase of the Shares (including the Underlying Common Shares) by the Investor on the terms herein set forth.

            (i)    The Investor is capable of assessing the proposed investment as a result of the Investor's financial or investment experience or as a result of advice received from a registered person other than the Company or an affiliate thereof, and is able to bear the economic risk of loss of its investment.

            (j)    The Investor is not a "U.S. Person" (as that term is defined in Rule 902(k) of Regulation S promulgated under the Securities Act, which definition includes, but is not limited to, an individual resident in the United States, an estate or trust of which any executor or administrator or trustee, respectively, is a U.S. Person and any partnership or corporation organized or incorporated under the laws of the United States) and is not acquiring the Shares (including the Underlying Common Shares) for the account or benefit of a U.S. Person or a Person in the United States.

            (k)  The Investor will not (i) offer or sell the Shares or the Underlying Shares in the United States or to a U.S. Person unless such securities are registered under the Securities Act or an exemption from the registration requirements under the Securities Act and the securities laws of all applicable states of the United States is available


SECTION 4

MUTUAL CLOSING CONDITIONS

        4.1    Mutual Closing Conditions to Closing.    Each Investor's obligation to purchase and pay for its Shares at the Closing, and the Company's obligation to issue the Shares to the Investors and perform its other obligations hereunder at the Closing, shall be subject to the fulfillment to such party's satisfaction (or waived in writing by the Company and such Investor on or before the Closing Date) of the following conditions:

            (a)    [Intentionally Omitted].    

            (b)    Waiting Periods.    All applicable waiting periods, if any, under the HSR Act, the Canadian Competition Act and the Investment Canada Act shall have expired or been terminated.

            (c)    No Order.    No preliminary or permanent injunction or other order or decree by any court or administrative or regulatory body which prevents the consummation of the transactions at the Closing contemplated hereby shall have been issued and remain in effect (the Company and the Investors agreeing to use their reasonable best efforts to have any such injunction, order or decree lifted).

            (d)    Consents.    All governmental waivers, consents, orders and approvals required, if any, under the Canadian Competition Act and the Investment Canada Act for the consummation of the transactions at the Closing contemplated hereby shall have been obtained and be in effect. All other governmental waivers, consents, orders and approvals legally required, if any, for the consummation of the transactions at the Closing contemplated hereby shall have been obtained

11



    and be in effect, except where the failure to obtain the same would not be reasonably likely, individually or in the aggregate, to have a Company Material Adverse Effect following the Closing.

            (e)    No Conflicting Laws.    No statute, rule or regulation shall have been enacted by any state, provincial or Federal government or governmental agency which would prevent the consummation of the transactions at the Closing contemplated hereby.


SECTION 5

SEPARATE CLOSING CONDITIONS

        5.1    Investors' Closing Conditions.    Each Investor's obligation to purchase and pay for its Shares at the Closing shall be subject to the fulfillment to such Investor's satisfaction on or before the Closing Date (or waived in writing by such Investor) of the following conditions:

            (a)    Satisfaction of Conditions.    The representations and warranties of the Company contained in this Agreement shall be, if specifically qualified by materiality or Company Material Adverse Effect, true in all respects, and, if not so qualified, shall be true in all material respects, in each case as of the date hereof and as of the Closing Date, and the covenants and agreements contained in this Agreement to be complied with by the Company on or before the Closing shall have been complied with in all material respects. The Company shall have delivered to the Investors a certificate dated the Closing Date to the foregoing effect.

            (b)    Delivery of Share Certificates.    The Company shall have executed and delivered to each Investor (or shall have caused to be executed and delivered to each Investor by the appropriate persons) a stock certificate issued to each Investor evidencing the Shares issuable to such Investor at the Closing.

            (c)    Registration Rights Agreement.    The Company shall have duly authorized, executed and delivered to the Investors a Registration Rights Agreement, substantially in the form of Annex E attached hereto (the "Registration Rights Agreement").

        5.2    Company's Closing Conditions.    The Company's obligations to issue Shares to any Investor at the Closing and perform its other obligations hereunder with respect to such Investor at the Closing shall be subject to the fulfillment to the Company's satisfaction at or before the Closing Date (or waived in writing by the Company) of the following conditions:

            (a)    Satisfaction of Conditions.    The representations and warranties of the Investor contained in this Agreement shall be, if specifically qualified by materiality, true in all respects, and, if not so qualified, shall be true in all material respects, in each case as of the date hereof and as of the Closing Date, and the covenants and agreements contained in this Agreement to be complied with by the Investor on or before the Closing shall have been complied with in all material respects. The Investor shall have delivered to the Company a certificate dated the Closing Date to the foregoing effect.

            (b)    Purchase of Shares.    The Investors, (which shall include any Substitute Investors as from time to time reflected on Annex A hereto) shall have purchased the Shares to be purchased by such Investors at the Closing pursuant to the terms of this Agreement.

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SECTION 6

COVENANTS

        6.1    Expenses.    Each party hereto shall bear and pay its own fees and expenses incurred in connection with the negotiation, execution, delivery and performance of this Agreement, the Ancillary Documents and the transactions contemplated hereby and thereby.

        6.2    Conduct of Business by the Company Pending the Closing.    The Company covenants and agrees that, prior to the Closing Date or earlier termination of this Agreement as provided herein, unless a Majority in Interest of the Investors shall otherwise agree in writing and except as contemplated by this Agreement, the Company shall, and shall cause its subsidiaries to, act and carry on their respective businesses in the ordinary course of business consistent with past practice and use its and their respective reasonable best efforts to preserve intact their current material business organizations, keep available the services of their current officers and employees (except for terminations of employees in the ordinary course of business) and preserve their material relationships with others having business dealings with them.

        6.3    [Intentionally Omitted}    

        6.4    Special Meeting.    The Company shall use its best efforts to take all actions necessary or advisable and permitted by applicable law, the Company's articles and its by-laws to (i) hold the Special Meeting as promptly as practicable for the purpose of voting upon the approval of the Conversion Issuance, (ii) recommend that the shareholders of the Company vote to approve the Conversion Issuance, and (iii) secure the requisite vote or consent of shareholders for the Conversion Issuance and in connection therewith shall solicit proxies and provide proxy statements to the shareholders of the Company in accordance with applicable securities laws.

        6.5    All Reasonable Efforts; Agreement to Cooperate.    

            (a)  Subject to the terms and conditions herein provided, each of the parties hereto shall use its reasonable best efforts to take, or cause to be taken, all action and to do, or cause to be done, and to assist and cooperate with the other parties in doing, all things necessary, proper or advisable consistent with applicable laws and regulations to consummate and make effective the transactions contemplated by this Agreement; provided, however, that nothing in this Section 6.5 shall require any Investor or the Company to agree to any modification of this Agreement or any of the Ancillary Documents or any Investor to make an investment in the Company that is greater than the amount set forth opposite the Investor's name on the Investor's signature page hereto.

            (b)  Without limiting the generality of the foregoing, and notwithstanding anything in this Agreement to the contrary, the Company shall use its reasonable best efforts to take or cause to be taken all reasonable action and to do, or cause to be done, and to assist and cooperate with the other parties hereto in doing, all things necessary, proper or advisable to obtain all governmental waivers, consents, authorizations, orders and approvals, all consents, amendments to or waivers from other parties under the terms of all Material Contracts and all other material permits, concessions, franchises or licenses applicable to the Company or its subsidiaries required as a result of the transactions contemplated by this Agreement.

        6.6    [Intentionally Omitted].    

        6.7    Agreement to Vote Shares.    At any annual or special meeting of the shareholders of the Company duly called with respect to the Conversion Issuance and at every continuation or adjournment thereof, and with respect to any action or approval by written consent of the shareholders of the Company in lieu of such meeting, each Investor agrees to (i) vote all Common Shares owned by such Investor at such time, individually or as trustee or custodian, in favor of approval of the Conversion

13



Issuance and in favor of any matter that could reasonably be expected to facilitate the Conversion Issuance and (ii) vote all such Common Shares against any proposal made in opposition to the Conversion Issuance or which would have the effect of preventing the Conversion Issuance. Each Investor, if then a holder of Common Shares, agrees to be present, in person or by proxy, at all meetings of shareholders of the Company and at any adjournment thereof at which the Conversion Issuance is put to a vote.

        6.8    Escrow Agreement.    Simultaneously with the execution of this Agreement, each Investor and the Company shall execute an Escrow Agreement, substantially in the form of Annex F hereto (the "Escrow Agreement").


SECTION 7

ACCESS

        7.1    Access; Notification of Certain Matters.    

            (a)  Upon reasonable notice, the Company shall afford the Investors and their representatives reasonable access during normal business hours to the offices, properties, books, records and personnel of the Company and its subsidiaries and such additional information concerning the business and properties of the Company and its subsidiaries as the Investors and their representatives may reasonably request. The Company shall instruct its and its subsidiaries' employees, counsel and financial advisors to cooperate with the Investors in their investigation of the business of the Company and its subsidiaries.

            (b)  Between the date hereof and the Closing or the earlier termination of this Agreement as provided herein, the Company shall, promptly (and in any event within five (5) business days after obtaining knowledge thereof), notify the Investors of any action or event which could reasonably be expected to have a Company Material Adverse Effect.

        7.2    Confidential Information.    The Company and each Investor for themselves, their respective directors, officers, employees, Affiliates, agents and representatives covenant with each other that they each will use all information provided by or relating to the other parties acquired by them pursuant to the provisions of this Agreement or in the course of negotiations with, or examinations of, the other parties (the "Confidential Information") only in connection with the transactions contemplated hereby and not in any way detrimental to the other parties and shall cause the Confidential Information obtained by them pursuant to this Agreement and such negotiations and examinations to be treated as confidential, except as may otherwise be required by law or the rules or regulations of Nasdaq or as may be necessary or appropriate in connection with the enforcement of this Agreement or any instrument or document referred to herein or contemplated hereby, and provided that to the extent that any such party or any Affiliate thereof may become legally compelled to disclose any Confidential Information, such party shall give notice to and consult with the party providing such information prior to disclosing such information. Notwithstanding the foregoing no recipient of Confidential Information (each, a "Recipient") shall be required to maintain the confidentiality of Confidential Information that (i) is or becomes generally available to the public other than as a result of disclosure by the Recipient or any party to whom the Recipient has disclosed such information; (ii) is obtained by the Recipient, on a non-confidential basis, from a third party entitled to disclose such information or (iii) is already known by the Recipient at the time such information is received by the Recipient. In the event of termination of this Agreement, each Recipient will cause to be delivered to the party providing such information all documents, work papers and other material containing Confidential Information obtained by it from such party, whether so obtained before or after the execution of this Agreement.

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SECTION 8

TERMINATION

        8.1    Termination.    This Agreement may be terminated and the other transactions contemplated by this Agreement may be abandoned at any time prior to the Closing Date, notwithstanding any requisite approval and adoption of this Agreement and the transactions contemplated by this Agreement, pursuant to a written notice of such termination, as follows:

            (a)  by mutual written consent of the Company and a Majority in Interest of the Investors;

            (b)  by either the Company or a Majority in Interest of the Investors if the Closing shall not have occurred on or before February 28, 2002; provided, however, that the right to terminate this Agreement under this Section 8.1(b) shall not be available to any party whose breach has caused the failure of the Closing to occur on or before such date;

            (c)  by either the Company or a Majority in Interest of the Investors if there shall be any restraining order, injunction or other order issued by any court of competent jurisdiction or other legal restraint or prohibition preventing the Closing or any of the other transactions contemplated hereby which is final and nonappealable;

            (d)  by a Majority in Interest of the Investors upon a breach of any representation, warranty, covenant or agreement on the part of the Company set forth in this Agreement, or if any representation or warranty of the Company shall have become untrue, such that the conditions set forth in Section 5.1(a) would not be satisfied ("Terminating Company Breach"); provided, however, that if such Terminating Company Breach is curable by the Company through the exercise of its reasonable best efforts and for as long as the Company continues to exercise such efforts, but not beyond the date specified in paragraph (b) above, the Investors may not terminate this Agreement under this Section 8.1(d);

            (e)  by the Company with respect to a particular Investor upon a breach of any representation, warranty, covenant or agreement on the part of such Investor set forth in this Agreement, or if any representation or warranty of such Investor shall have become untrue, such that the conditions set forth in Section 5.2(a) would not be satisfied ("Terminating Investor Breach");

            (f)    by the Company at any time that the Investors (which shall include Substitute Investors as from time to time reflected on Annex A hereto) are not collectively obligated as parties to this Agreement to purchase all of the Shares.

        8.2    Effect of Termination.    In the event of termination of this Agreement pursuant to Section 8.1, this Agreement shall forthwith become void, there shall be no liability under this Agreement on the part of the Investors (including any Substitute Investors) or the Company, and all rights and obligations of each party hereto shall cease, other than the obligations set forth in Sections 6.1 and 7.2 hereof; provided, however, that nothing herein shall relieve any party from liability for any willful or intentional breach of any covenant or agreement of such party contained in this Agreement.


SECTION 9

GENERAL

        9.1    Amendments, Waivers and Consents.    No covenant or other provision hereof may be waived otherwise than by a written instrument signed by the party so waiving such covenant or other provision. The waiver or failure to insist upon strict compliance with any condition or provision hereof shall not operate as a waiver of, or estoppel with respect to, any subsequent or other waiver or failure. This

15



Agreement may not be amended or modified except by an instrument in writing signed by the Company and a Majority in Interest of the Investors.

        9.2    Survival of Representations, Warranties and Covenants, Assignability of Rights.    All representations and warranties made herein and in the certificates, exhibits or schedules delivered or furnished by or on behalf of a party to the other party in connection herewith shall terminate as of the Closing. Except as otherwise provided in this Agreement, all covenants, agreements, representations and warranties shall inure to the benefit of the successors and assigns of the parties.

        9.3    Governing Law.    This Agreement shall be deemed to be a contract made under, and shall be construed in accordance with, the laws of the State of Delaware (without giving effect to principles of conflicts of law the effect of which would cause the application of domestic substantive laws of any other jurisdiction).

        9.4    Counterparts.    This Agreement may be executed simultaneously in any number of counterparts (including by facsimile), each of which when so executed and delivered shall be taken to be an original; but such counterparts shall together constitute but one and the same document.

        9.5    Notices and Demands.    All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally, mailed by registered or certified mail (return receipt requested) or sent via confirmed facsimile to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

    (i)   If to any Investor, to the address set forth on the Investor's signature page hereto, and

 

 

(ii)

 

If to the Company:

 

 

 

 

Capital Environmental Resource Inc.
1005 Skyview Drive
Burlington, Ontario L7P 5B1
Attention: Thomas E. Durkin, III
Facsimile: (905) 319-9050

 

 

 

 

with a copy to:

 

 

 

 

Karen A. Dewis
McDermott, Will & Emery
600 Thirteenth Street, NW
Washington, DC 20005-3096
Facsimile: (202) 756-8087

 

 

 

 

with a copy to:

 

 

 

 

Barry G. McGee
Blake, Cassels & Graydon LLP
Suite 2800, Box 25
Commerce Court West
199 Bay Street
Toronto, Ontario M5L 1A9
Facsimile: (416) 863-2653

        9.6    Severability.    Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be deemed prohibited or invalid under such applicable law, such provision shall be ineffective to

16



the extent of such prohibition or invalidity, and such prohibition or invalidity shall not invalidate the remainder of such provision or the other provisions of this Agreement.

        9.7    Integration.    This Agreement, including the exhibits, documents and instruments referred to herein or therein, constitute all of the agreements and supersede all other prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof.

        9.8    No Assignment.    Except pursuant to Section 1.3(b) hereof, this Agreement may not be assigned, pledged, hypothecated or otherwise transferred by the Company or any Investor.

        9.9    Investor Obligations Several Not Joint.    All obligations of the Investors hereunder are several and not joint.

        9.10    Third-Party Beneficiary.    Nothing expressed or implied in this Agreement is intended or shall be construed to confer upon or give any Person other than the parties hereto any rights or remedies under or by reason of this Agreement or any transaction contemplated hereby.

[Signature pages follow]

17


        IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.


 

 

CAPITAL ENVIRONMENTAL RESOURCE INC.

 

 

By


    Name:
    Title:

 

 

INVESTORS

 


  Name:  
  Number of Shares:
  Purchase Price: US $
  Jurisdiction of Residence:
  Address:  

18



Annex B


RESOLUTIONS ESTABLISHING TERMS OF SERIES 1 PREFERRED STOCK


RESOLUTIONS OF THE DIRECTORS OF
CAPITAL ENVIRONMENTAL RESOURCE INC.
to be inserted in the minutes of the directors' meeting held on
Monday, January 21, 2002

    Series 1 Preferred Shares

            The classes and any maximum number of shares the Corporation is authorized to issue set out in the articles of the Corporation include an unlimited number of Preferred shares issuable in series;

            The articles of the Corporation provide that, subject to the filing of articles of amendment pursuant to the Business Corporations Act, the directors may fix the number of Preferred shares of each series and the designation, rights, privileges, restrictions and conditions attaching to the Preferred shares of each series;

            On motion duly made, seconded and carried, the following resolution was passed:

            RESOLVED THAT the first series of Preferred shares shall consist of an unlimited number of shares and shall be designated as Series 1 Preferred Shares (the "Series 1 Preferred Shares"). The rights, privileges, restrictions and conditions attaching to the Series 1 Preferred Shares are as follows:

1.
Voting Rights

            Subject to the Business Corporations Act (the "Act"), the holders of the Series 1 Preferred Shares shall not, as such, be entitled to receive notice of or to attend any meeting of the shareholders of the Corporation or to vote at any such meeting.

2.
Dividends

            The holders of the Series 1 Preferred Shares shall not be entitled to receive any dividends declared by the Corporation.

3.
Distribution Rights

            In the event of the liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary, the holders of the Series 1 Preferred Shares shall be entitled to receive, before any distribution of any part of the assets of the Corporation among the holders of the Common Shares, an amount equal to the amount paid for such shares and no more.

4.
Automatic Conversion

            The Series 1 Preferred Shares shall convert into Common Shares on the basis of one Common Share for each Series 1 Preferred Share held, such conversion to be effected by, and only by, approval of the conversion by ordinary resolution of the holders of the Common Shares. Following such approval, the conversion shall be effective on a date specified by the board of directors or on the date which is five days following the date of the approval, whichever first occurs (the "Automatic Conversion Date"). On and after the Automatic Conversion Date, the Corporation shall deliver, or cause to be delivered to or to the order of the holders of the Series 1 Preferred Shares, the Common Shares issued on such conversion on presentation and surrender at the registered office of the Corporation of certificates, if any, representing the Series 1 Preferred Shares being converted. From and after the Automatic Conversion Date, the former holders of the Series 1 Preferred Shares shall be entitled to exercise all rights of holders of Common Shares. All Common Shares resulting from the automatic conversion of Series 1 Preferred Shares into Common Shares pursuant to this section 4 shall be deemed to be fully paid and non-assessable.



Annex C


GLOSSARY

        As used herein, the following terms shall have the following meanings:

        "Affiliate" means, with respect to any Person, any other Person, directly or indirectly, controlling, controlled by, or under common control with, such Person. For purposes of this definition, the term "control" (including the correlative terms
"
controlling", "controlled by" and "under common control with") means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

        "Ancillary Documents" means the Registration Rights Agreement, the Escrow Agreement and any other document referred to herein that is required to be executed by the Company or the Investors as a condition to closing.

        "Canadian Competition Act" means the Competition Act (Canada), R.S. 1985 c. C-34, as amended.

        "Company Material Adverse Effect" shall mean any material adverse effect on the business, operations, assets, condition (financial or other) or results of operations of the Company and its subsidiaries, taken as a whole.

        "Disclosure Schedule" means the disclosure statement delivered at or prior to the execution of this Agreement by the Company to the Investor setting out certain information relating to the Company.

        "Environmental Law" means any Federal, state, provincial, local or foreign law, statute, ordinance, rule, regulation, code, standard, guideline, policy, license, permit, authorization, approval, consent, legal doctrine, order, judgment, decree, injunction, requirement or agreement with any governmental entity relating to (x) the protection, preservation or restoration of the environment (including, without limitation, air, surface water, groundwater, surface land, subsurface land or plant and animal life) or to human health or safety or (y) the exposure to, or the use, storage, recycling, treatment, generation, transportation, processing, handling, labeling, production, release or disposal of Hazardous Substances, in each case as amended and as in effect on the Closing Date.

        "Exchange Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

        "Federal" shall mean of or relating to the federal government of each of the United States and Canada.

        "GAAP" means generally accepted accounting principles as in effect in the United States of America from time to time.

        "Hazardous Substance" means any substance presently listed, defined, designated or classified as hazardous, toxic, radioactive, or dangerous, or otherwise regulated, under any Environmental Law and any substance that may harm, impair or cause an adverse effect to the environment (including, without limitation, air, surface water, groundwater, surface land, subsurface land or plant and animal life) or to human health or safety and property. Hazardous Substance includes any substance to which exposure is regulated by any government authority or any Environmental Law including, without limitation, any toxic waste, pollutant, contaminant, hazardous substance, toxic substance, hazardous waste, special waste, industrial substance or petroleum or any derivative or by-product thereof, radon, radioactive material, asbestos, or asbestos containing material, urea formaldehyde foam insulation, lead or polychlorinated biphenyls.

        "HSR Act" means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

        "Investment Canada Act" means the Investment Canada Act, R.S. 1985, c. 28 (1st Supp.), as amended.



        "Liability" means any liability or obligation (whether known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or unliquidated and whether due or become due).

        "Lien" means any mortgage, pledge, security interest, encumbrance, lien, claim or charge of any kind (including, but not limited to, any conditional sale or other title retention agreement, any lease in the nature thereof, and the filing of or agreement to give any financing statement under the Uniform Commercial Code or comparable law of any jurisdiction in connection with such mortgage, pledge, security interest, encumbrance, lien or charge).

        "Majority in Interest of the Investors" means Investors holding, or committed to purchase hereunder, a majority of the Shares.

        "Nasdaq" shall mean The Nasdaq Stock Market, including the Nasdaq National Market and the Nasdaq SmallCap Market.

        "Ontario Securities Act" means the Securities Act (Ontario) R.S.O 1990, c.S.5 (as amended) and the rules and regulations promulgated thereunder.

        "Person" means an individual, corporation, limited liability company, partnership, association, trust or any other entity or organization.

        "SEC" means the Securities and Exchange Commission.

        "Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.



        As used herein, the following terms shall have the meanings ascribed to them in the Section of this Agreement opposite each such term:

Term

  Section

Agreement   Preamble
Closing   1.3(a)
Closing Date   1.3(a)
Company Required Statutory Approvals   2.3(c)
Common Shares   2.2
Company SEC Reports   2.4(a)
"control"   Annex B ("Affiliate" definition)
Confidential Information   7.2
Conversion Issuance   2.12
Credit Facility   2.9
Escrow Agreement   6.8
Investor Transaction Expenses   6.1(a)
Investors   Preamble
Material Contracts   2.14
Per Share Purchase Price   1.1
Preferred Shares   2.2
Purchase Price   1.2
Recipient   7.2
Registration Rights Agreement   5.1(d)
Rights Agreement   2.2(b)
Series 1 Preferred Shares   Preamble
Shares   1.1
Special Meeting   2.12
Substitute Investor   1.3
Terminated Investor   1.3
Terminating Company Breach   8.1(d)
Terminating Investor Breach   8.1(e)
Underlying Common Shares   2.2(b)
Waste Services Agreement   Preamble



QuickLinks

SUBSCRIPTION AGREEMENT
W I T N E S S E T H
SECTION 1 TERMS OF PURCHASE AND ISSUANCE
SECTION 2 REPRESENTATIONS AND WARRANTIES OF THE COMPANY
SECTION 3 INVESTOR REPRESENTATIONS
SECTION 4 MUTUAL CLOSING CONDITIONS
SECTION 5 SEPARATE CLOSING CONDITIONS
SECTION 6 COVENANTS
SECTION 7 ACCESS
SECTION 8 TERMINATION
SECTION 9 GENERAL
RESOLUTIONS ESTABLISHING TERMS OF SERIES 1 PREFERRED STOCK
RESOLUTIONS OF THE DIRECTORS OF CAPITAL ENVIRONMENTAL RESOURCE INC. to be inserted in the minutes of the directors' meeting held on Monday, January 21, 2002
GLOSSARY
EX-4 6 a2069456zex-4.htm EX 4 Prepared by MERRILL CORPORATION
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EXHIBIT 4


CAPITAL ENVIRONMENTAL RESOURCE INC.

1999 STOCK OPTION PLAN
AMENDED JUNE 6, 2000

        1.    A Stock Option Plan for Capital Environmental Resource Inc. is hereby established with the intent of advancing the interests of the Corporation by encouraging and enabling the acquisition of an equity interest in the Corporation by individuals who are important to the Corporation's growth and management. For purposes of the Plan, capitalized terms, unless defined where the respective term first appears in the Plan, shall have the meanings given in the last Paragraph hereof.

        2.    The Committee shall from time to time by resolution designate those key employees, directors, officers, consultants and other independent contractors providing ongoing services to the Corporation (or any of its subsidiaries) who, in the opinion of the Committee, are largely responsible for the management and growth of the Corporation and who, as an additional inducement to promote the best interests of the Corporation, shall receive grants of options under the Plan (herein referred to as the "Optionee(s)") and shall determine the size and terms of each such grant, subject to the provisions of the Plan. The judgment of the Committee in designating individuals to receive option grants and the size of such grants shall be final and conclusive; provided, however, that each designated individual shall have the right not to accept any grant and any such decision shall not affect the Optionee's employment by or engagement with the Corporation or any of its subsidiaries.

        3.    The total number of authorized but unissued Shares allocated to and made available to be subject to options granted to Optionees under both the Capital Environmental Resource Inc. Employee Stock Option Plan (sometimes called the "1997 Employee Stock Option Plan") and the Plan (together, the "Aggregate Available Shares") shall not exceed nineteen percent (19%) (disregarding any fractional Share) of the issued common shares of the Corporation (treating any convertible securities as having been converted to common shares). For purposes of the immediately preceding sentence, "issued common shares of the Corporation" shall mean those issued at the time of each grant under the Plan. The aggregate number of Shares subject to options granted under the Plan to any one particular individual shall not exceed fifty percent (50%) of the said aggregate number of Shares allocated to and made available for the Plan. The Aggregate Available Shares shall include a number of Shares which can be (but need not be) issued pursuant to Incentive Stock Options granted under the Plan, which number shall not exceed nineteen percent (19%) (disregarding any fractional Share) of the issued common shares of the Corporation (treating any convertible securities as having been converted to common shares). For purposes of the immediately preceding sentence, "issued common shares of the Corporation" shall mean those common shares (and convertible securities treated as having been converted to common shares) issued at the time of the adoption of the Plan. Any Shares which were subject to any unexercised portion of any terminated or expired option shall again become available to be subject to options granted under the Plan.

        4.    Except as provided by the laws of descent and distribution or by the Optionee's will, the rights of any Optionee under the Plan are personal to the said Optionee and such rights and the options granted hereunder are not assignable or transferable; provided, however, that, in the Committee's discretion, the terms of any option granted hereunder (other than an Incentive Stock Option) may expressly provide for specifically limited transferability.

        5.    The Committee shall have the unfettered right to interpret the provisions of this Plan and to make such regulations and formulate such administrative provisions for carrying this Plan into effect and to make such changes therein and in the regulations and administrative provisions therein as, from time to time, the Committee deems appropriate and in the best interests of the Corporation; provided however, that no such change, regulation or provision may increase the number of Shares that may be optioned hereunder or change the manner of determining the exercise price, or impair or detrimentally change the rights of Optionees under options theretofore granted under the Plan without the prior



written consent of the Optionee or Optionees affected. The Board of Directors of the Corporation (the "Board") shall have the unfettered right from time to time and at any time to amend, rescind or terminate the Plan as it shall deem advisable; provided, however, that no such rescission or termination shall impair or change the rights and options theretofore granted under the Plan without the prior written consent of the Optionee or Optionees affected.

        6.    The Corporation shall pay all costs of administering the Plan.

        7.    If the Shares shall be publicly traded, listed or admitted to quotation on the day preceding the day on which the Committee grants an option or designates an individual as an Optionee under the Plan (the "Grant Date"), the exercise price of the Shares purchased pursuant to stock options granted hereunder shall not be less than that from time to time permitted by any applicable rules, regulations and policies of any stock exchange or exchanges or national quotation system upon which any securities of the Corporation may from time to time be listed or otherwise traded or admitted to quotation on the day preceding the Grant Date. Otherwise, the exercise price of such Shares shall be as determined by the Committee, except that in the case of an Incentive Stock Option the exercise price shall not be less than the fair market value of such Shares on the Grant Date.

        8.    The grant of any stock option to an Optionee shall become effective at the time determined by the Committee in its sole discretion and shall be evidenced by a grant document or stock option agreement authorized by the Committee. If the Committee so determines, each Optionee may be required to execute a stock option agreement in substantially the applicable form annexed hereto as Schedule "A" or Schedule "B" prior to the grant of any stock option to an Optionee becoming effective.

        9.    (a) Each option granted hereunder shall be for a term not exceeding five (5) years and shall have an expiry date on the fifth anniversary of its grant. Unless the Committee determines otherwise, each option granted hereunder to an individual other than a non-employee member of the Board shall become fully vested and exercisable on the second anniversary date of its grant, and all or any part of the Shares as to which the option shall have become vested and exercisable may be purchased at any time or from time to time thereafter, until expiration or termination of the option. Each option granted hereunder to a non-employee member of the Board shall become fully vested and exercisable on the first anniversary date of its grant, and all or any part of the Shares as to which the option shall have become vested and exercisable may be purchased at any time or from time to time thereafter, until expiration or termination of the option.

        (b)  Notwithstanding the foregoing provisions of this Paragraph 9, immediately prior to any Change in Control, options shall become immediately vested and exercisable in respect of any and all Shares covered thereby in respect of which the Optionee has not exercised such Optionee's right to acquire under the option, if the Optionee shall then be employed by (or be deemed to be employed by) or be engaged with the Corporation or any of its subsidiaries. As used in the immediately preceding sentence, "immediately prior" to the Change in Control shall mean sufficiently in advance of the Change in Control to permit the Optionee to take all steps reasonably necessary to exercise the option fully and to deal with the Shares purchased under the option so that those Shares may be treated in the same manner in connection with the Change in Control as the Shares of other shareholders.

        10.  (a) Subject to the fifth anniversary expiry date of any option granted hereunder, in the event of the physical or mental disability, retirement (but only if the Committee has made a specific determination that the Optionee's termination of employment should be treated as retirement for purposes of the Plan) or death of an Optionee on or prior to the expiry date of the Optionee's option while engaged as a key employee or director or officer of, or consultant to, the Corporation or any of its subsidiaries, any option granted hereunder may be exercised up to the full amount of the optioned Shares by the Optionee (or, if the Optionee shall be disabled or deceased, the legal personal representative(s) of the Optionee) at any time up to and including eighteen (18) months following the

2



physical or mental disability, such retirement or death of the Optionee after which date the option shall, forthwith expire and terminate and be of no further force or effect whatsoever.

        (b)  For greater certainty, during the period any Optionee who is deemed to be an employee of the Corporation or any of its subsidiaries pursuant to any medical or disability plan of the Corporation or any of its subsidiaries, such Optionee shall also be deemed to be an employee for the purposes of the Plan, and the eighteen-month period of continued exercisability provided in this Paragraph 10 shall commence upon the termination of all actual and deemed employment by the Corporation or any of its subsidiaries; provided, however, that this sentence shall not apply with respect to any Incentive Stock Option granted hereunder; and, provided further, that any such period of deemed employment and any such eighteen-month period of continued exercisability shall be subject to the fifth anniversary expiry date of any option granted hereunder.

        11.  Subject to the fifth anniversary expiry date of any option granted hereunder, in the event the Optionee's employment by or engagement with (as a director or otherwise) the Corporation or any of its subsidiaries is terminated by the Corporation or any of its subsidiaries or the Optionee, for any reason other than the Optionee's physical or mental disability, retirement (as described in Paragraph 10(a) hereof) or death, before exercise of any options granted hereunder, the Optionee shall have ninety (90) days from the date of such termination (or if the Optionee is a non-employee member of the Board, the Optionee shall have one year) to exercise only that portion of the option such Optionee is otherwise entitled to exercise at the time of such termination and thereafter such Optionee's option shall expire and all rights to purchase Shares hereunder shall cease and expire and be of no further force or effect. Options shall not be affected by any change of employment or engagement so long as the Optionee continues to be employed by the Corporation or any of its subsidiaries or continues to be a director, officer or consultant of one of the foregoing.

        12.  Subject to the provisions of the Plan, the options granted hereunder may be exercised from time to time by delivery to the Corporation at its head office of a written notice of exercise specifying the number of Shares with respect to which the option is being exercised and accompanied by payment in full of the purchase price of the Shares then being purchased by way of cash or certified cheque in favour of the Corporation, by way of any cashless exercise method authorized by the Committee, or, in the sole discretion of the Committee, by way of the tender of Shares already owned by the Optionee. Such notice shall contain the Optionee's undertaking to comply, to the satisfaction of the Corporation and its counsel, with all applicable requirements of any stock exchange or exchanges or national quotation system upon which any securities of the Corporation are from time to time listed (or admitted to quotation) and any applicable regulatory authority or authorities. In connection with the exercise of any option hereunder the Optionee must enter into arrangements satisfactory to the Corporation with respect to the withholding of any taxes required by applicable law.

        13.  Subject to any required action by its shareholders, if the Corporation shall be a party to any reorganization, merger, dissolution or sale or lease of all or substantially all its assets, whether or not the Corporation is the surviving entity, the option shall be adjusted so as to apply to the securities to which the holder of the number of Shares subject to the option would have been entitled by reason of such reorganization, merger or sale or lease of all or substantially all of its assets. Further, subject to any required action by the Corporation's shareholders, upon the occurrence of any event which affects the Shares in such a way that an adjustment of the option is appropriate in order to prevent the dilution or enlargement of rights under the option, the Committee shall make appropriate equitable adjustments, which may include, without limitation, adjustments to any or all of the number and kind of shares of stock (or other securities) which may thereafter be issued in connection with the option and adjustments to any exercise price specified in the option. Notwithstanding the foregoing provisions of this Paragraph 13, the Corporation may satisfy any obligations to an Optionee under the Plan by paying to the said Optionee in cash the difference between the exercise price of all unexercised options granted hereunder and the fair market value of the securities to which the Optionee would be entitled

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upon exercise of all unexercised options, regardless of whether all conditions of exercise relating to continuous employment have been satisfied; further, the Corporation may give the Optionee the alternative of having the Plan's obligations to the Optionee satisfied in cash as provided in this sentence. Adjustments under this Paragraph or any determinations as to the fair market value of any securities shall be made by the Committee in accordance with this Plan, and any reasonable determination made by the Committee shall be binding and conclusive.

        14.  In the event of any subdivision or subdivisions of the Shares as said Shares were constituted at the time any options hereunder were granted into a greater number of Shares, the Corporation will thereafter deliver at the time of exercise thereof in addition to the number of Shares in respect of which the option is then being exercised, such additional number of Shares as result from such subdivision or subdivisions of the Shares for which the option is being exercised without the Optionee exercising the option making any additional payment or giving any other consideration therefor.

        15.  In the event of any consolidation or consolidations of the Shares as said Shares were constituted at the time any options hereunder were granted into a lesser number of Shares, the Optionee shall accept, at the time of the exercise thereof in lieu of the number of Shares in respect of which the option is then being exercised, the lesser number of Shares as result from such consolidation or consolidations of the Shares for which the option is being exercised.

        16.  In the event of any change of the Shares as said Shares were constituted at the time any options hereunder were granted, the Corporation shall thereafter deliver at the time of the exercise thereof the number of shares of the appropriate class resulting from the said change as the Optionee exercising the option would have been entitled to receive in respect of the number of Shares so purchased had the option been exercised before such change.

        17.  If the Corporation at any time while any options hereunder are outstanding shall pay any stock dividend or stock dividends upon the Shares in respect of which any options were granted hereunder, the Corporation will thereafter deliver at the time of exercise thereof in addition to the number of Shares in respect of which the option is then being exercised, the additional number of shares of the appropriate class as would have been payable on the Shares so purchased if they had been outstanding on the record date for the payment of said stock dividend or dividends.

        18.  The Corporation shall not be obligated to issue fractional Shares in satisfaction of any of its obligations hereunder.

        19.  If at any time the Corporation grants to the holders of its capital stock rights to subscribe for and purchase pro rata additional securities of the Corporation or of any other corporation or entity, there shall be no adjustments made to the number of Shares or other securities subject to the option in consequence thereof and the said stock option of the Optionee shall remain unaffected.

        20.  Any stock option granted under the Plan may have a stock appreciation right attached to it, either at the time of grant or by amendment adding it to an existing stock option; subject, however, to the grant of such stock appreciation right being in compliance with the applicable regulations and policies of any stock exchange or exchange or national quotation system upon which any securities of the Corporation may from time to time be listed or admitted to quotation. The provisions of the Plan respecting exercise of stock options and the adjustments to options arising from certain corporate actions shall apply mutatis mutandis to all stock appreciation rights granted hereunder.

        21.  Stock appreciation rights granted hereunder are exercisable to the extent, and only to the extent, that the option to which it is attached is exercisable. To the extent a stock appreciation right attached to an option granted hereunder is exercised, the option to which it is attached shall be deemed to have been exercised to a similar extent.

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        22.  A stock appreciation right granted hereunder shall entitle the Optionee to elect to surrender to the Corporation unexercised the option to which it is attached, or any portion thereof, and to receive from the Corporation in exchange therefor that number of Shares, disregarding any fractional Share, having an aggregate value equal to the excess of the Fair Market Value of one Share (on the trading day immediately preceding the day the notice provided for in Paragraph 23 hereof is received by the Corporation) over the purchase price per Share specified in such option, times the number of Shares called for by the option, or portion thereof, which is so surrendered.

        23.  Subject to the provisions of the Plan, a stock appreciation right granted hereunder may be exercised from time to time by delivering to the Corporation at its head office a written notice of exercise, which notice shall specify the number of stock appreciation rights to be exercised and options to be forfeited and the number of Shares the Optionee elects to receive thereby. Such notice shall contain the Optionee's undertaking to comply, to the satisfaction of the Corporation and its counsel, with all applicable requirements of any stock exchange or exchanges upon which any securities of the Corporation are listed for trading and any other applicable regulatory authority.

        24.  In addition to any grants which may be made hereunder pursuant to the preceding provisions of the Plan to an individual who becomes a non-employee member of the Board on or after the completion of the Initial Public Offering, the Committee, in its sole discretion, may (but need not) grant the individual an option as of the day on which the individual's service as a non-employee member of the Board commences. The option shall have an exercise price per Share for its underlying Shares equal to the Fair Market Value of a Share on the trading day immediately preceding such individual's first day of service (or on the day of completion of the Initial Public Offering in the case of any individual who becomes a non-employee member of the Board on such day). Any such option shall be for such number of Shares as the Committee, in its sole discretion, may determine and, subject to the provisions of the Plan, shall be subject to such terms and conditions as the Committee, in its sole discretion, may determine.

        25.  In addition to any grants which may be made hereunder pursuant to the preceding provisions of the Plan (including Paragraph 24 hereof) to an individual who is serving as a non-employee member of the Board on the day of an annual meeting of the Corporation and is re-elected to the Board at such annual meeting, each such individual shall automatically be granted an option for ten thousand (10,000) Shares as of the date of such meeting. Such option shall have an exercise price per Share for its underlying Shares equal to the Fair Market Value per Share on the trading date immediately preceding the date of such meeting.

        26.  For purposes of the Plan, the following terms, as used herein, shall have the respective meanings specified:

            (a)  "Affiliate" shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of the Exchange Act.

            (b)  "Beneficial Owner" shall have the meaning set forth in Rule 13d-3 under the Exchange Act.

            (c)  "Change in Control" shall be deemed to have occurred prior to the completion of any Initial Public Offering upon the occurrence of either:

              (i)    an offer made generally to the holders of the Corporation's voting securities in one or more jurisdictions to purchase directly or indirectly voting securities of the Corporation where the voting securities which are the subject of the offer to purchase, together with the offeror's then presently owned securities, will in the aggregate exceed fifty percent (50%) of the outstanding voting securities of the Corporation and where two (2) or more persons or companies make offers jointly or in concert or intending to exercise jointly or in concert any voting rights attaching to the securities to be acquired, then the securities owned by each of

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      them shall be included in the calculation of the percentage of the outstanding voting securities of the Corporation owned by each of them; or

              (ii)  the day prior to the completion of an initial public offering of the Corporation's securities on a recognized stock exchange.

            "Change in Control shall be deemed to have occurred, following the completion of an Initial Public Offering, if the event set forth in any one of the following paragraphs shall have occurred:

                (I)  any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Corporation (not including in the securities beneficially owned by such Person any securities acquired directly from the Corporation or its Affiliates) representing thirty percent (30%) or more of the combined voting power of the Corporation's then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (i) of paragraph (III) below; or

                (II)  the following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on the date of completion of the Initial Public Offering, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Corporation) whose appointment or election by the Board or nomination for election by the Corporation's shareholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors on the date of completion of the Initial Public Offering or whose appointment, election or nomination for election was previously so approved or recommended; or

                (III)  there is consummated a merger or consolidation of the Corporation or any direct or indirect subsidiary of the Corporation with any other corporation, other than (i) a merger or consolidation which would result in the voting securities of the Corporation outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Corporation or any subsidiary of the Corporation, at least fifty-one percent (51%) of the combined voting power of the securities of the Corporation or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a recapitalization of the Corporation (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Corporation representing thirty percent (30%) or more of the combined voting power of the Corporation's then outstanding securities; or

                (IV)  the shareholders of the Corporation approve a plan of complete liquidation or dissolution of the Corporation or there is consummated an agreement for the sale or disposition by the Corporation of all or substantially all of the Corporation's assets, other than a sale or disposition by the Corporation of all or substantially all of the Corporation's assets to an entity, at least fifty-one percent (51%) of the combined voting power of the voting securities of which are owned by shareholders of the Corporation in substantially the same proportions as their ownership of the Corporation immediately prior to such sale.

    Notwithstanding the foregoing, a "Change in Control" shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record holders of the common stock of the Corporation immediately prior to

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    such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Corporation immediately following such transaction or series of transactions.

            (d)  "Code" means the Internal Revenue Code of 1986, as amended from time to time.

            (e)  "Committee" means a committee of the Board appointed to administer the Plan (which committee may also be the Compensation Committee of the Board). The Committee shall be composed solely of two or more "Non-Employee Directors" (as defined in Rule 16b-3(b)(3) under Section 16 of the Exchange Act) who are appointed from time to time to serve by the Board. If for any reason such a Committee shall not have been appointed by the Board, the Board shall serve as the Committee.

            (f)    "Corporation" means Capital Environmental Resource Inc., or any successor corporation.

            (g)  "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended from time to time.

            (h)  "Fair Market Value" of a Share, unless otherwise provided in the applicable grant document or stock option agreement, means:

              (i)    If the Stock is admitted to trading on one or more national securities exchanges,

                (A)  the average of the reported highest and lowest sale prices per Share as reported on the reporting system selected by the Committee on the relevant date; or

                (B)  in the absence of reported sales on that date, the average of the reported highest and lowest sales prices per Share on the last previous day for which there was a reported sale; or

              (ii)  If the Stock is not admitted to trading on any national securities exchange, but is admitted to quotation on NASDAQ and has been designated as a NASDAQ National Market ("NNM") security,

                (A)  the average of the reported highest and lowest sale prices per Share as reported on NASDAQ on the relevant date; or

                (B)  in the absence of reported sales on that date, the average of the reported highest and lowest sales prices per Share on the last previous day for which there was a reported sale; or

              (iii)  If the Stock is not admitted to trading on any national securities exchange, but is admitted to quotation on NASDAQ as a NASDAQ SmallCap Market security (and has not been designated as a NNM security), the average of the highest bid and lowest asked prices per Share on the relevant date; or

              (iv)  If the preceding clauses (i), (ii) and (iii) do not apply, the Fair Market Value determined by the Committee, using such criteria as it shall determine, in good faith and in its sole discretion, to be appropriate for such valuation.

            (i)    "Incentive Stock Option" means an option which can granted only to employees of the Corporation (or any of its "subsidiary corporations", within the meaning of Section 424(f) of the Code, including any "subsidiary corporations which become such after the adoption of the Plan) and which complies with the requirements of Section 422 of the Code: provided, however, that no option shall be an Incentive Stock Option if its terms, as of the time it is granted state that it will not be treated as an Incentive Stock Option; and, provided further, that the grant of any Incentive Stock Option shall be subject to obtaining (or having obtained) the approval of the Plan by the

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    Corporation's stockholders within twelve (12) months before or after the date the Plan is adopted by the Board.

            (j)    "Initial Public Offering" means the sale, in an underwritten public offering registered under the Securities Act of 1933, as amended from time to time, of Shares providing the Corporation with gross proceeds of at least forty million dollars (US$ 40,000,000).

            (k)  "NASDAQ" means National Association of Securities Dealers Automated Quotation System.

            (l)    "Person" shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Corporation or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Corporation or any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the shareholders of the Corporation in substantially the same proportions as their ownership of stock of the Corporation.

            (m)  "Plan" means the Capital Environmental Resource Inc. 1999 Stock Option Plan, as it may be amended from time to time.

            (n)  "Shares" means shares of Stock.

            (o)  "Stock" means the capital stock of the Corporation, or, in the event that the outstanding capital stock is hereafter changed into, or exchanged for, different stock or securities, such other stock or securities.

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CAPITAL ENVIRONMENTAL RESOURCE INC. 1999 STOCK OPTION PLAN AMENDED JUNE 6, 2000
EX-5 7 a2069456zex-5.htm EX 5 Prepared by MERRILL CORPORATION
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EXHIBIT 5


DIRECTOR OPTION AGREEMENT

        DIRECTOR OPTION AGREEMENT (the "Agreement") by and between the Optionee and Capital Environmental Resource Inc. (the "Corporation") effective as of the date specified in Exhibit A attached hereto.


W I T N E S S E T H

        WHEREAS the Corporation has adopted the Capital Environmental Resource Inc. 1999 Stock Option Plan, as amended (the "Plan"); and

        WHEREAS the Committee has determined that it is desirable and in the best interest of the Corporation to grant to the Optionee a stock option as a non-employee director of the Corporation.

        NOW THEREFORE, the parties hereto agree as follows:

        1.    Definitions.    Capitalized terms used herein that are set forth in Exhibit A shall have the meanings given them in Exhibit A. All other capitalized terms which are not defined where they first appear herein, shall have the meanings given them in the Plan.

        2.    Incorporation of Plan; Agreement Subject to Plan.    The Plan is incorporated by reference and made a part of this Agreement, and this Agreement shall be subject to the terms of the Plan, as the Plan may be amended from time to time, provided that any such amendment of the Plan shall be made in accordance with Paragraph 5 of the Plan. Any inconsistency between this Agreement and the applicable provisions of the Plan shall be resolved in accordance with the terms of the Plan.

        3.    Grant of Option.    Pursuant to the Plan and subject to the terms and conditions set forth herein and therein, the Corporation hereby grants to the Optionee the right and option (the "Option") to purchase all or any part of the Optioned Shares described in Exhibit A hereto (the term "Optioned Shares sometimes being used hereinafter to refer to those shares subject to purchase pursuant to this Director Option Agreement and/or to those shares purchased by the Optionee pursuant to this Agreement). The shares initially subject to the Option shall be shares of the Corporation's common stock (the "Stock").

        4.    Exercise Price.    The purchase price for each Optioned Share purchased by the Optionee shall be the Exercise Price specified in Exhibit A hereto.

5.    Certain Other Terms of the Option.

            (a)    Expiry Date: Term.    Subject to earlier termination pursuant to Section 5(c) or (d) hereof, the Option shall expire on, and shall no longer be exercisable following the fifth anniversary of the Grant Date. The "Term" of the Option shall be the five-year period from the Grant Date to the fifth anniversary of the Grant Date;

            (b)    Vesting Period. Exercisability.    Subject to Sections 5(c), (d) and (e) hereof, the Option shall become fully vested and exercisable on the first anniversary of the Grant Date.

            (c)    Termination of Engagement by Reason of Physical or Mental Disability, Retirement or Death.    If the Optionee's engagement by the Corporation or any of its subsidiaries is terminated during the Term by reason of the Optionee's physical or mental disability, death or retirement (the Committee having made a specific determination that such termination should be treated as retirement for purposes of the Plan) on or prior to the expiry date of the Option, the Option may be exercised by the Optionee (or if the Optionee shall be disabled or deceased, the legal representative(s) of the Optionee) at any time up to and including eighteen (18) months following such physical or mental disability, retirement or death for up to the full amount of the Optioned Shares. The Option shall expire and terminate at the earlier of (i) the end of such eighteen-month period or (ii) the end of the Term.



            (d)    Other Termination of Engagement.    If the Optionee's engagement by the Corporation shall terminate during the Term for any reason other than those described in Section 5(c), the Option (to the extent vested and exercisable on the date of such termination of the Optionee's engagement as a director of the Corporation) may be exercised at any time within twelve (12) months after such termination (but not beyond the Term of the Option). The Option, to the extent not then vested and exercisable, shall immediately expire upon such termination of the Optionee's engagement as a director of the Corporation.

            (e)    Change in Control.    Notwithstanding any other provision hereof, immediately prior to the occurrence of any Change in Control of the Corporation, the Option shall become fully vested and exercisable. The phrase "immediately prior to" in the immediately preceding sentence shall mean sufficiently in advance of the Change in Control to permit the Optionee to take all steps reasonably necessary to exercise the Option fully and to deal with the Optioned Shares so that the Optioned Shares shall be treated in the same manner in connection with the Change in Control as the shares of Stock of other shareholders.

        6.    Method of Exercising Option and Withholding.    The Option shall be exercised by the delivery by the Optionee to the Corporation at its head office of written notice of election to exercise the same, specifying the number of Optioned Shares with respect to which the Option is being exercised and accompanied by payment in full of the aggregate Exercise Price for such Optioned Shares. Payment for such Optioned Shares shall be made (i) by cash or certified cheque payable to the order of the Corporation, or (ii) pursuant to a "cashless exercise" method if such method is established by the Corporation, or (iii) in the sole discretion of the Committee, by way of the tender of Shares already owned by the Optionee having a Fair Market Value equal to the total payment due from the Optionee. Such notice shall constitute the Optionee's acknowledgement of and undertaking to comply, to the satisfaction of the Corporation and its counsel, with all applicable requirements of any stock exchange or exchanges or national quotation system upon which any securities of the Corporation may from time to time be listed (or admitted to quotation) and of any applicable regulatory authority or authorities. In connection with the exercise of the Option, the Optionee shall enter into arrangements satisfactory to the Corporation with respect to the withholding of any taxes required by applicable law. Concurrently with its receipt of any such notice and payment, the Corporation shall deliver, or cause to be delivered to the Optionee a certificate representing the Optioned Shares purchased by the Optionee. The Corporation may at its election require that this Agreement be presented for appropriate endorsement upon any such exercise.

        7.    Transfer.    The Option shall not be assigned, pledged or otherwise transferred except by will or the laws of descent and distribution, and during the Optionee's lifetime the Option may be exercised only by the Optionee or the Optionee's guardian or legal representative. Any attempt to transfer the Option in contravention of this Section shall be void ab initio. The Option shall not be subject to execution, attachment or other process. Notwithstanding the foregoing, while employed by the Corporation or any subsidiary thereof, the Optionee may, in Optionee's sole discretion, elect to transfer the Option to the Optionee's spouse, children or grandchildren (including adopted and step children and grandchildren) ("Immediate Family"), to a trust solely for the benefit of the Optionee and Optionee's Immediate Family, or to a partnership or limited liability company whose only partners or shareholders are Optionee and members of Optionee's Immediate Family. Optionee shall provide the Corporation with written notice of any such election to transfer. Optionee's rights under this Agreement shall pass to the transferee, and such transferee may exercise the Option and all rights granted by this Agreement in full, to the extent Optionee was entitled to exercise the Option during the Term hereof.

        8.    Equitable Adjustments.    Subject to any required action by its shareholders, if the Corporation shall be a party to any reorganization, merger, dissolution or sale or lease of all or substantially all of its assets, whether or not the Corporation is the surviving entity, the Option shall be adjusted so as to

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apply to the securities to which the holder of the number of Shares of the Corporation subject to the Option would have been entitled by reason of such reorganization, merger, dissolution or sale or lease of all or substantially all of its assets. Further, subject to any required action by the Corporation's shareholders, upon the occurrence of an event which affects the Shares in such a way that an adjustment of the Option is appropriate in order to prevent the dilution or enlargement of rights under the Option, the Corporation shall make appropriate equitable adjustments, which may include, without limitation, adjustments to any or all of the number and kind of shares of Stock (or other securities) which may thereafter be issued in connection with the Option and adjustments to any Exercise Price specified in the Option. Notwithstanding any other provisions of this Section 8, the Corporation may satisfy any obligations to the Optionee hereunder by paying to the Optionee in cash the difference between the aggregate Exercise Price of the unexercised portion of the Option granted hereunder and the fair market value of the securities to which the Optionee would be entitled, upon exercise of such unexercised portion of the Option, regardless of whether all conditions of exercise relating to continuous employment have been satisfied. The Corporation may also give the Optionee the alternative of having the Corporation's obligations to the Optionee hereunder satisfied in cash as provided herein. For the purposes of this Agreement, the fair market value shall be the closing sale price on the stock exchange or national quotation system having the greatest volume of trading on the last trading day immediately prior to the date such notice is given. Adjustments under this Section or any determinations as to the fair market value of any securities shall be made by the Committee in accordance with the Plan, and any reasonable determination made by the Committee shall be binding and conclusive.

9.    Subdivision, etc.

    (a)
    In the event of any subdivision or subdivisions of the Shares as said Shares were constituted at the time the Option was granted into a greater number of Shares, the Corporation will thereafter deliver at the time of exercise thereof in addition to the number of Shares in respect of which the Option is then being exercised, such additional number of Shares as result from such subdivision or subdivisions for which the Option is being exercised without the Optionee being obligated to make any additional payment or giving any other consideration therefor.

    (b)
    In the event of any consolidation or consolidations of the Shares of the Corporation as said Shares were constituted at the time the Option was granted into a lesser number of Shares, the Optionee shall accept, at the time of the exercise thereof in lieu of the number of Shares in respect of which the Option is then being exercised, the lesser number of Shares as result from such consolidation or consolidations of the Shares for which the Option is being exercised.

    (c)
    In the event of any change in the Shares of the Corporation as said Shares were constituted at the time of the Option was granted, the Corporation shall thereafter deliver at the time of the exercise thereof the number of shares of the appropriate class resulting from the said change as the Optionee would have been entitled to receive in respect of the number of Shares so purchased had the Option been exercised before such change.

    (d)
    If the Corporation at any time while the Option is outstanding shall pay any stock dividend or stock dividends upon the Shares in respect of which the Option was granted hereunder, the Corporation will thereafter deliver at the time of exercise thereof in addition to the number of Shares in respect of which the Option is then being exercised, the additional number of shares of the appropriate class as would have been payable on the Shares so purchased if they had been outstanding on the record date for the payment of said stock dividend or dividends.

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    (e)
    Notwithstanding any other provision of this Agreement, the Corporation shall not be obligated to issue fractional Shares in satisfaction of its obligations hereunder.

    (f)
    If at any time the Corporation grants to the holders of its common stock rights to subscribe for and purchase pro rata additional securities of the Corporation or of any other corporation or entity, there shall be no adjustments made to the number of Shares or other securities subject to the Option in consequence thereof and the Option shall remain unaffected.

10.  Stock Appreciation Rights.

    (a)
    The Option may have a stock appreciation right attached to it, either at the time of grant, as set forth in Exhibit A hereto or by amendment to Exhibit A, adding the stock appreciation right after the time of the grant; subject, however, to the grant of such stock appreciation right being in compliance with applicable regulations and policies of any stock exchange or exchanges or national quotation system upon which any securities of the Corporation may from time to time be listed or admitted to quotation. The provisions of the Plan and this Agreement respecting the exercise of stock options and the adjustments to options arising from certain corporate actions shall apply mutatis mutandis to any stock appreciation right attached hereto. Any stock appreciation right attached hereto is exercisable to the extent, and only to the extent, that the Option is exercisable. To the extent a stock appreciation right attached to the Option is exercised, the Option shall be deemed to have been exercised to a similar extent.

    (b)
    A stock appreciation right attached hereto shall entitle the Optionee to elect to surrender to the Corporation, unexercised, the Option, or any portion thereof, and to receive from the Corporation in exchange therefor that number of Shares, disregarding any fractional Shares, having an aggregate value equal to the excess of the Fair Market Value of one Share (on the trading day immediately preceding the day the notice provided for in this Section 10 is received by the Corporation) over the Exercise Price per Share specified in Exhibit A hereto, times the number of Shares called for by the Option, or portion thereof, which is so surrendered.

    (c)
    Subject to the provisions of the Plan, a stock appreciation right attached hereto may be exercised from time to time by delivering to the Corporation at its head office a written notice of exercise, which notice shall specify (i) the number of Shares with respect to which the stock appreciation right is exercised and the Option is to be forfeited and (ii) the number of Shares the Optionee elects to receive by such exercise. Such notice shall contain the Optionee's undertaking to comply, to the satisfaction of the Corporation and its counsel, with all applicable requirements of any stock exchange or exchanges or quotation system upon which any securities of the Corporation are listed for trading (or admitted to quotation) and any other applicable regulatory authority.

        11.    Representation.    The Optionee represents that when the Optionee exercises the Option, the Optionee will be purchasing the Optioned Shares for the Optionee's own account and not on behalf of others.

        12.    Shares To Be Reserved: Registration.    The Company shall at all times during the term of the Option reserve and keep available such number of Optioned Shares as will be sufficient to satisfy the requirements of this Agreement. Prior to the time the Optionee exercises the Option pursuant to Section 6, the Company shall use its best efforts to cause such shares to be registered on a Form S-8 (or other appropriate form).

        13.    Compliance with Laws.    Notwithstanding any other provision of this Agreement, the Company shall not be obligated to issue any Optioned Shares unless it is advised by counsel of its

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selection that it may do so without violation of any applicable laws pertaining to the issuance of securities, and may require any Optioned Shares so issued to bear a legend, may give its transfer agent instructions, and may take such other steps, as in its judgment are reasonably required to prevent any such violation.

        14.    No Rights in Optioned Shares.    The Optionee shall have none of the rights of a stockholder with respect to the Optioned Shares unless and until shares of Stock are issued upon exercise of the Option and the Optionee becomes the holder of record of such shares.

        15.    Modification.    No modification, variation, amendment or termination by mutual consent of this Agreement and no waiver of the performance of any of the responsibilities of any of the parties hereto shall be effected unless such action is taken in writing and is signed by both parties. No amendment to this Agreement shall be valid or binding unless set forth in writing and duly executed by all of the parties hereto. No waiver of any breach of any provision of this Agreement shall be effective or binding unless made in writing and signed by the party purporting to give the same and, unless otherwise provided in the written waiver, shall be limited to the specific breach waived. The failure of either party thereto to enforce at any time any provision of this Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.

        16.    Enforceability.    This Agreement shall be binding upon and enure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and permitted assigns. Nothing herein, expressed or implied, is intended to confer upon any person, other than the parties hereto and their respective heirs, executors, administrators, successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

        17.    Counterparts.    This Agreement may be executed in several counterparts, each of which so executed shall be deemed to be an original and such counterparts together shall constitute but one and the same instrument.

        18.    Governing Law.    This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein.

        19.    Notices.    Any notice required or permitted under this Agreement shall be deemed given when delivered personally or when deposited in a United States or Canadian post office, postage prepaid, addressed, as appropriate to the Optionee at the last address specified in the Corporation's employment records for the Optionee, or such other address as the Optionee by notice in writing delivered pursuant to the provisions hereof, or to the Corporation, Attention: Corporate Secretary, or such other address as the Corporation may designate in writing to the Optionee.

        20.    Interpretation.    The division of this Agreement into Sections, subsections and clauses and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement. The terms "this Agreement", "hereof", "herein", "hereunder" and similar expressions refer to this Agreement and the Schedules hereto and not to any particular Section, subsection, clause or other portion hereof and include any agreement or instrument supplementary or ancillary hereto.

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5



Exhibit A
To Director Option Agreement

CAPITAL ENVIRONMENTAL RESOURCE INC.
1999 STOCK OPTION PLAN

        The Optionee identified below has been granted an Option to purchase shares of the common stock of the Corporation, in accordance with the terms of the Director Option Agreement to which this Exhibit A is attached.

        A statement of certain terms of the Option, which has been granted, appears in the chart below. The terms shall have the meaning ascribed to them below when used in the Director Option Agreement to which this Exhibit A is attached.

Optionee   Gary DeGroote

Grant Date

 

September 24, 2001

Effective Date, if different from Grant Date

 

N/A

Exercise Price per Share

 

US $2.58

Aggregate Number of Shares subject to Option (the "Option Shares")

 

40,000

Aggregate Number of Shares subject to Stock Appreciation Right, if any

 

N/A

        IN WITNESS WHEREOF, the parties hereby agree to the terms of this Exhibit A and the Director Option Agreement to which it is attached. Execution of this Exhibit A by the Parties constitutes execution of the Director Option Agreement to which is it attached.

Date:   September 24, 2001
  /s/  GARY DEGROOTE      
Gary DeGroote

Date:

 

September 24, 2001


 

CAPITAL ENVIRONMENTAL RESOURCE INC.

 

 

 

 

By:

 

/s/  
DAVID SUTHERLAND-YOEST      
David Sutherland-Yoest
Chairman and C.E.O.

6




QuickLinks

DIRECTOR OPTION AGREEMENT
W I T N E S S E T H
Exhibit A To Director Option Agreement CAPITAL ENVIRONMENTAL RESOURCE INC. 1999 STOCK OPTION PLAN
EX-6 8 a2069456zex-6.htm EX 6 Prepared by MERRILL CORPORATION
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EXHIBIT 6


DIRECTOR OPTION AGREEMENT

        DIRECTOR OPTION AGREEMENT (the "Agreement") by and between the Optionee and Capital Environmental Resource Inc. (the "Corporation") effective as of the date specified in Exhibit A attached hereto.


W I T N E S S E T H

        WHEREAS the Corporation has adopted the Capital Environmental Resource Inc. 1999 Stock Option Plan, as amended (the "Plan"); and

        WHEREAS the Committee has determined that it is desirable and in the best interest of the Corporation to grant to the Optionee a stock option as a non-employee director of the Corporation.

        NOW THEREFORE, the parties hereto agree as follows:

        1.    Definitions.    Capitalized terms used herein that are set forth in Exhibit A shall have the meanings given them in Exhibit A. All other capitalized terms which are not defined where they first appear herein, shall have the meanings given them in the Plan.

        2.    Incorporation of Plan; Agreement Subject to Plan.    The Plan is incorporated by reference and made a part of this Agreement, and this Agreement shall be subject to the terms of the Plan, as the Plan may be amended from time to time, provided that any such amendment of the Plan shall be made in accordance with Paragraph 5 of the Plan. Any inconsistency between this Agreement and the applicable provisions of the Plan shall be resolved in accordance with the terms of the Plan.

        3.    Grant of Option.    Pursuant to the Plan and subject to the terms and conditions set forth herein and therein, the Corporation hereby grants to the Optionee the right and option (the "Option") to purchase all or any part of the Optioned Shares described in Exhibit A hereto (the term "Optioned Shares sometimes being used hereinafter to refer to those shares subject to purchase pursuant to this Director Option Agreement and/or to those shares purchased by the Optionee pursuant to this Agreement). The shares initially subject to the Option shall be shares of the Corporation's common stock (the "Stock"). The Option is not intended to qualify as an "Incentive Stock Option" as defined in Section 422 of the Internal Revenue Code of 1986, as amended from time to time (the "Code").

        4.    Exercise Price.    The purchase price for each Optioned Share purchased by the Optionee shall be the Exercise Price specified in Exhibit A hereto.

5.    Certain Other Terms of the Option.

            (a)    Expiry Date: Term.    Subject to earlier termination pursuant to Section 5(c) or (d) hereof, the Option shall expire on, and shall no longer be exercisable following the fifth anniversary of the Grant Date. The "Term" of the Option shall be the five-year period from the Grant Date to the fifth anniversary of the Grant Date;

            (b)    Vesting Period. Exercisability.    Subject to Sections 5(c), (d) and (e) hereof, the Option shall become fully vested and exercisable on the first anniversary of the Grant Date.

            (c)    Termination of Engagement by Reason of Physical or Mental Disability, Retirement or Death.    If the Optionee's engagement by the Corporation or any of its subsidiaries is terminated during the Term by reason of the Optionee's physical or mental disability, death or retirement (the Committee having made a specific determination that such termination should be treated as retirement for purposes of the Plan) on or prior to the expiry date of the Option, the Option may be exercised by the Optionee (or if the Optionee shall be disabled or deceased, the legal representative(s) of the Optionee) at any time up to and including eighteen (18) months following such physical or mental disability, retirement or death for up to the full amount of the Optioned



    Shares. The Option shall expire and terminate at the earlier of (i) the end of such eighteen-month period or (ii) the end of the Term.

            (d)    Other Termination of Engagement.    If the Optionee's engagement by the Corporation shall terminate during the Term for any reason other than those described in Section 5(c), the Option (to the extent vested and exercisable on the date of such termination of the Optionee's engagement as a director of the Corporation) may be exercised at any time within twelve (12) months after such termination (but not beyond the Term of the Option). The Option, to the extent not then vested and exercisable, shall immediately expire upon such termination of the Optionee's engagement as a director of the Corporation.

            (e)    Change in Control.    Notwithstanding any other provision hereof, immediately prior to the occurrence of any Change in Control of the Corporation, the Option shall become fully vested and exercisable. The phrase "immediately prior to" in the immediately preceding sentence shall mean sufficiently in advance of the Change in Control to permit the Optionee to take all steps reasonably necessary to exercise the Option fully and to deal with the Optioned Shares so that the Optioned Shares shall be treated in the same manner in connection with the Change in Control as the shares of Stock of other shareholders.

        6.    Method of Exercising Option and Withholding.    The Option shall be exercised by the delivery by the Optionee to the Corporation at its head office of written notice of election to exercise the same, specifying the number of Optioned Shares with respect to which the Option is being exercised and accompanied by payment in full of the aggregate Exercise Price for such Optioned Shares. Payment for such Optioned Shares shall be made (i) by cash or certified cheque payable to the order of the Corporation, or (ii) pursuant to a "cashless exercise" method if such method is established by the Corporation, or (iii) in the sole discretion of the Committee, by way of the tender of Shares already owned by the Optionee having a Fair Market Value equal to the total payment due from the Optionee. Such notice shall constitute the Optionee's acknowledgement of and undertaking to comply, to the satisfaction of the Corporation and its counsel, with all applicable requirements of any stock exchange or exchanges or national quotation system upon which any securities of the Corporation may from time to time be listed (or admitted to quotation) and of any applicable regulatory authority or authorities. In connection with the exercise of the Option, the Optionee shall enter into arrangements satisfactory to the Corporation with respect to the withholding of any taxes required by applicable law. Concurrently with its receipt of any such notice and payment, the Corporation shall deliver, or cause to be delivered to the Optionee a certificate representing the Optioned Shares purchased by the Optionee. The Corporation may at its election require that this Agreement be presented for appropriate endorsement upon any such exercise.

        7.    Transfer.    The Option shall not be assigned, pledged or otherwise transferred except by will or the laws of descent and distribution, and during the Optionee's lifetime the Option may be exercised only by the Optionee or the Optionee's guardian or legal representative. Any attempt to transfer the Option in contravention of this Section shall be void ab initio. The Option shall not be subject to execution, attachment or other process. Notwithstanding the foregoing, while employed by the Corporation or any subsidiary thereof, the Optionee may, in Optionee's sole discretion, elect to transfer the Option to the Optionee's spouse, children or grandchildren (including adopted and step children and grandchildren) ("Immediate Family"), to a trust solely for the benefit of the Optionee and Optionee's Immediate Family, or to a partnership or limited liability company whose only partners or shareholders are Optionee and members of Optionee's Immediate Family. Optionee shall provide the Corporation with written notice of any such election to transfer. Optionee's rights under this Agreement shall pass to the transferee, and such transferee may exercise the Option and all rights granted by this Agreement in full, to the extent Optionee was entitled to exercise the Option during the Term hereof.

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        8.    Equitable Adjustments.    Subject to any required action by its shareholders, if the Corporation shall be a party to any reorganization, merger, dissolution or sale or lease of all or substantially all of its assets, whether or not the Corporation is the surviving entity, the Option shall be adjusted so as to apply to the securities to which the holder of the number of Shares of the Corporation subject to the Option would have been entitled by reason of such reorganization, merger, dissolution or sale or lease of all or substantially all of its assets. Further, subject to any required action by the Corporation's shareholders, upon the occurrence of an event which affects the Shares in such a way that an adjustment of the Option is appropriate in order to prevent the dilution or enlargement of rights under the Option, the Corporation shall make appropriate equitable adjustments, which may include, without limitation, adjustments to any or all of the number and kind of shares of Stock (or other securities) which may thereafter be issued in connection with the Option and adjustments to any Exercise Price specified in the Option. Notwithstanding any other provisions of this Section 8, the Corporation may satisfy any obligations to the Optionee hereunder by paying to the Optionee in cash the difference between the aggregate Exercise Price of the unexercised portion of the Option granted hereunder and the fair market value of the securities to which the Optionee would be entitled, upon exercise of such unexercised portion of the Option, regardless of whether all conditions of exercise relating to continuous employment have been satisfied. The Corporation may also give the Optionee the alternative of having the Corporation's obligations to the Optionee hereunder satisfied in cash as provided herein. For the purposes of this Agreement, the fair market value shall be the closing sale price on the stock exchange or national quotation system having the greatest volume of trading on the last trading day immediately prior to the date such notice is given. Adjustments under this Section or any determinations as to the fair market value of any securities shall be made by the Committee in accordance with the Plan, and any reasonable determination made by the Committee shall be binding and conclusive.

9.    Subdivision, etc.

    (a)
    In the event of any subdivision or subdivisions of the Shares as said Shares were constituted at the time the Option was granted into a greater number of Shares, the Corporation will thereafter deliver at the time of exercise thereof in addition to the number of Shares in respect of which the Option is then being exercised, such additional number of Shares as result from such subdivision or subdivisions for which the Option is being exercised without the Optionee being obligated to make any additional payment or giving any other consideration therefor.

    (b)
    In the event of any consolidation or consolidations of the Shares of the Corporation as said Shares were constituted at the time the Option was granted into a lesser number of Shares, the Optionee shall accept, at the time of the exercise thereof in lieu of the number of Shares in respect of which the Option is then being exercised, the lesser number of Shares as result from such consolidation or consolidations of the Shares for which the Option is being exercised.

    (c)
    In the event of any change in the Shares of the Corporation as said Shares were constituted at the time of the Option was granted, the Corporation shall thereafter deliver at the time of the exercise thereof the number of shares of the appropriate class resulting from the said change as the Optionee would have been entitled to receive in respect of the number of Shares so purchased had the Option been exercised before such change.

    (d)
    If the Corporation at any time while the Option is outstanding shall pay any stock dividend or stock dividends upon the Shares in respect of which the Option was granted hereunder, the Corporation will thereafter deliver at the time of exercise thereof in addition to the number of Shares in respect of which the Option is then being exercised, the additional number of shares

3


      of the appropriate class as would have been payable on the Shares so purchased if they had been outstanding on the record date for the payment of said stock dividend or dividends.

    (e)
    Notwithstanding any other provision of this Agreement, the Corporation shall not be obligated to issue fractional Shares in satisfaction of its obligations hereunder.

    (f)
    If at any time the Corporation grants to the holders of its common stock rights to subscribe for and purchase pro rata additional securities of the Corporation or of any other corporation or entity, there shall be no adjustments made to the number of Shares or other securities subject to the Option in consequence thereof and the Option shall remain unaffected.

10.  Stock Appreciation Rights.

    (a)
    The Option may have a stock appreciation right attached to it, either at the time of grant, as set forth in Exhibit A hereto or by amendment to Exhibit A, adding the stock appreciation right after the time of the grant; subject, however, to the grant of such stock appreciation right being in compliance with applicable regulations and policies of any stock exchange or exchanges or national quotation system upon which any securities of the Corporation may from time to time be listed or admitted to quotation. The provisions of the Plan and this Agreement respecting the exercise of stock options and the adjustments to options arising from certain corporate actions shall apply mutatis mutandis to any stock appreciation right attached hereto. Any stock appreciation right attached hereto is exercisable to the extent, and only to the extent, that the Option is exercisable. To the extent a stock appreciation right attached to the Option is exercised, the Option shall be deemed to have been exercised to a similar extent.

    (b)
    A stock appreciation right attached hereto shall entitle the Optionee to elect to surrender to the Corporation, unexercised, the Option, or any portion thereof, and to receive from the Corporation in exchange therefor that number of Shares, disregarding any fractional Shares, having an aggregate value equal to the excess of the Fair Market Value of one Share (on the trading day immediately preceding the day the notice provided for in this Section 10 is received by the Corporation) over the Exercise Price per Share specified in Exhibit A hereto, times the number of Shares called for by the Option, or portion thereof, which is so surrendered.

    (c)
    Subject to the provisions of the Plan, a stock appreciation right attached hereto may be exercised from time to time by delivering to the Corporation at its head office a written notice of exercise, which notice shall specify (i) the number of Shares with respect to which the stock appreciation right is exercised and the Option is to be forfeited and (ii) the number of Shares the Optionee elects to receive by such exercise. Such notice shall contain the Optionee's undertaking to comply, to the satisfaction of the Corporation and its counsel, with all applicable requirements of any stock exchange or exchanges or quotation system upon which any securities of the Corporation are listed for trading (or admitted to quotation) and any other applicable regulatory authority.

        11.    Representation.    The Optionee represents that when the Optionee exercises the Option, the Optionee will be purchasing the Optioned Shares for the Optionee's own account and not on behalf of others.

        12.    Shares To Be Reserved: Registration.    The Company shall at all times during the term of the Option reserve and keep available such number of Optioned Shares as will be sufficient to satisfy the requirements of this Agreement. Prior to the time the Optionee exercises the Option pursuant to Section 6, the Company shall use its best efforts to cause such shares to be registered on a Form S-8 (or other appropriate form).

4



        13.    Compliance with Laws.    Notwithstanding any other provision of this Agreement, the Company shall not be obligated to issue any Optioned Shares unless it is advised by counsel of its selection that it may do so without violation of any applicable laws pertaining to the issuance of securities, and may require any Optioned Shares so issued to bear a legend, may give its transfer agent instructions, and may take such other steps, as in its judgment are reasonably required to prevent any such violation.

        14.    No Rights in Optioned Shares.    The Optionee shall have none of the rights of a stockholder with respect to the Optioned Shares unless and until shares of Stock are issued upon exercise of the Option and the Optionee becomes the holder of record of such shares.

        15.    Modification.    No modification, variation, amendment or termination by mutual consent of this Agreement and no waiver of the performance of any of the responsibilities of any of the parties hereto shall be effected unless such action is taken in writing and is signed by both parties. No amendment to this Agreement shall be valid or binding unless set forth in writing and duly executed by all of the parties hereto. No waiver of any breach of any provision of this Agreement shall be effective or binding unless made in writing and signed by the party purporting to give the same and, unless otherwise provided in the written waiver, shall be limited to the specific breach waived. The failure of either party thereto to enforce at any time any provision of this Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.

        16.    Enforceability.    This Agreement shall be binding upon and enure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and permitted assigns. Nothing herein, expressed or implied, is intended to confer upon any person, other than the parties hereto and their respective heirs, executors, administrators, successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

        17.    Counterparts.    This Agreement may be executed in several counterparts, each of which so executed shall be deemed to be an original and such counterparts together shall constitute but one and the same instrument.

        18.    Governing Law.    This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein.

        19.    Notices.    Any notice required or permitted under this Agreement shall be deemed given when delivered personally or when deposited in a United States or Canadian post office, postage prepaid, addressed, as appropriate to the Optionee at the last address specified in the Corporation's employment records for the Optionee, or such other address as the Optionee by notice in writing delivered pursuant to the provisions hereof, or to the Corporation, Attention: Corporate Secretary, or such other address as the Corporation may designate in writing to the Optionee.

        20.    Interpretation.    The division of this Agreement into Sections, subsections and clauses and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement. The terms "this Agreement", "hereof", "herein", "hereunder" and similar expressions refer to this Agreement and the Schedules hereto and not to any particular Section, subsection, clause or other portion hereof and include any agreement or instrument supplementary or ancillary hereto.

REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK

5



Exhibit A
To Director Option Agreement

CAPITAL ENVIRONMENTAL RESOURCE INC.
1999 STOCK OPTION PLAN

        The Optionee identified below has been granted an Option to purchase shares of the common stock of the Corporation, in accordance with the terms of the Director Option Agreement to which this Exhibit A is attached.

        A statement of certain terms of the Option, which has been granted, appears in the chart below. The terms shall have the meaning ascribed to them below when used in the Director Option Agreement to which this Exhibit A is attached.

Optionee   Don A. Sanders

Grant Date

 

September 24, 2001

Effective Date, if different from Grant Date

 

N/A

Exercise Price per Share

 

US $2.58

Aggregate Number of Shares subject to Option (the "Option Shares")

 

40,000

Aggregate Number of Shares subject to Stock Appreciation Right, if any

 

N/A

        IN WITNESS WHEREOF, the parties hereby agree to the terms of this Exhibit A and the Director Option Agreement to which it is attached. Execution of this Exhibit A by the Parties constitutes execution of the Director Option Agreement to which is it attached.

Date:   September 24, 2001
  /s/  DON A. SANDERS      
Don A. Sanders

Date:

 

September 24, 2001


 

CAPITAL ENVIRONMENTAL RESOURCE INC.

 

 

 

 

By:

 

/s/  
DAVID SUTHERLAND-YOEST      
David Sutherland-Yoest
Chairman and C.E.O.

6




QuickLinks

DIRECTOR OPTION AGREEMENT
W I T N E S S E T H
Exhibit A To Director Option Agreement CAPITAL ENVIRONMENTAL RESOURCE INC. 1999 STOCK OPTION PLAN
EX-7 9 a2069456zex-7.htm EX 7 Prepared by MERRILL CORPORATION
QuickLinks -- Click here to rapidly navigate through this document


EXHIBIT 7


EMPLOYEE OPTION AGREEMENT

        EMPLOYEE OPTION AGREEMENT (the "Agreement") by and between the Optionee and Capital Environmental Resource Inc. (the "Corporation") effective as of the date specified in Exhibit A attached hereto.


W I T N E S S E T H

        WHEREAS the Corporation has adopted the Capital Environmental Resource Inc. 1999 Stock Option Plan (the "Plan"), as amended; and

        WHEREAS the Committee has determined that it is desirable and in the best interest of the Corporation to grant to the Optionee a stock option as an incentive for the Optionee to advance the interests of the Corporation.

        NOW THEREFORE, the parties hereto agree as follows:

        1.    Definitions.    Capitalized terms used herein that are set forth in Exhibit A shall have the meanings given them in Exhibit A. All other capitalized terms which are not defined where they first appear herein, shall have the meanings given them in the Plan.

        2.    Incorporation of Plan; Agreement Subject to Plan.    The Plan is incorporated by reference and made a part of this Agreement, and this Agreement shall be subject to the terms of the Plan, as the Plan may be amended from time to time, provided that any such amendment of the Plan shall be made in accordance with Paragraph 5 of the Plan. Any inconsistency between this Agreement and the applicable provisions of the Plan shall be resolved in accordance with the terms of the Plan.

        3.    Grant of Option.    Pursuant to the Plan and subject to the terms and conditions set forth herein and therein, the Corporation hereby grants to the Optionee the right and option (the "Option") to purchase all or any part of the Optioned Shares described in Exhibit A hereto (the term "Optioned Shares" sometimes being used hereinafter to refer to those shares subject to purchase pursuant to this Employee Option Agreement and/or to those shares purchased by the Optionee pursuant to this Agreement). The shares initially subject to the Option shall be shares of the Corporation's common stock (the "Stock").

        4.    Exercise Price.    The purchase price for each Optioned Share purchased by the Optionee shall be the Exercise Price specified in Exhibit A hereto.

5.    Certain Other Terms of the Option.

            (a)    Expiry Date: Term.    Subject to earlier termination pursuant to Section 5(c) or (d) hereof, the Option shall expire on, and shall no longer be exercisable following the fifth anniversary of the Grant Date. The "Term" of the Option shall be the five-year period from the Grant Date to the fifth anniversary of the Grant Date.

            (b)    Vesting Period. Exercisability.    Subject to Sections 5(c), (d) and (e) hereof, the Option shall become fully vested and exercisable on the second anniversary of the Grant Date.

            (c)    Termination of Employment by Reason of Physical or Mental Disability, Retirement or Death.    If the Optionee's employment with the Corporation or any of its subsidiaries is terminated during the Term by reason of the Optionee's physical or mental disability, death or retirement (the Committee having made a specific determination that such termination should be treated as retirement for purposes of the Plan) on or prior to the expiry date of the Option, while engaged as an employee of the Corporation or any of its subsidiaries, the Option may be exercised by the Optionee (or if the Optionee shall be disabled or deceased, the legal representative(s) of the Optionee) at any time up to and including eighteen (18) months following such physical or mental



    disability, retirement or death for up to the full amount of the Optioned Shares. The Option shall expire and terminate at the earlier of (i) the end of such eighteen-month period or (ii) the end of the Term. For greater certainty, during the period that the Optionee is deemed to be an employee of the Corporation or any of its subsidiaries pursuant to any medical or disability plan of the Corporation or any of its subsidiaries, such Optionee shall also be deemed to be an employee for the purposes of the Plan, and the eighteen-month period of continued exercisability provided in this Section 5(c) shall commence upon the termination of all actual and deemed employment by the Corporation or any of its subsidiaries; provided that any such period of deemed employment and any such period of continued exercisability shall terminate no later than the end of the Term.

            (d)    Other Termination of Employment.    If the Optionee's employment with the Corporation or any of its subsidiaries shall terminate during the Term for any reason other than those described in Section 5(c), the Option (to the extent vested and exercisable on the date of such termination of employment) may be exercised at any time within ninety (90) days after such termination (but not beyond the Term of the Option). The Option, to the extent not then vested and exercisable, shall immediately expire upon such termination of employment. For purposes of the grant hereunder, any transfer of employment by the Optionee among the Corporation and any of its subsidiaries shall not be considered a termination of employment with the Corporation or any of its subsidiaries.

            (e)    Change in Control.    Notwithstanding any other provision hereof, immediately prior to the occurrence of any Change in Control of the Corporation, the Option shall become fully vested and exercisable. The phrase "immediately prior to" in the immediately preceding sentence shall mean sufficiently in advance of the Change in Control to permit the Optionee to take all steps reasonably necessary to exercise the Option fully and to deal with the Optioned Shares so that the Optioned Shares shall be treated in the same manner in connection with the Change in Control as the shares of Stock of other shareholders.

        6.    Non-Competition/Confidentiality.    As a condition to and in consideration of the grant of the Option by the Corporation, the receipt and sufficiency of which consideration is hereby acknowledged, the Optionee hereby reaffirms and agrees to be bound by the terms and conditions concerning non-competition set out in the Offer of Employment between the Optionee and the Corporation dated January 10, 2002.

        7.    Method of Exercising Option and Withholding.    The Option shall be exercised by the delivery by the Optionee to the Corporation at its head office of written notice of election to exercise the same, specifying the number of Optioned Shares with respect to which the Option is being exercised and accompanied by payment in full of the aggregate Exercise Price for such Optioned Shares. Payment for such Optioned Shares shall be made (i) by cash or certified cheque payable to the order of the Corporation, or (ii) pursuant to a "cashless exercise" method if such method is established by the Corporation, or (iii) in the sole discretion of the Committee, by way of the tender of Shares already owned by the Optionee having a Fair Market Value equal to the total payment due from the Optionee. Such notice shall constitute the Optionee's acknowledgement of and undertaking to comply, to the satisfaction of the Corporation and its counsel, with all applicable requirements of any stock exchange or exchanges or national quotation system upon which any securities of the Corporation may from time to time be listed (or admitted to quotation) and of any applicable regulatory authority or authorities. In connection with the exercise of the Option, the Optionee shall enter into arrangements satisfactory to the Corporation with respect to the withholding of any taxes required by applicable law. Concurrently with its receipt of any such notice and payment, the Corporation shall deliver, or cause to be delivered to the Optionee a certificate representing the Optioned Shares purchased by the Optionee. The Corporation may at its election require that this Agreement be presented for appropriate endorsement upon any such exercise.

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        8.    Transfer.    The Option shall not be assigned, pledged or otherwise transferred except by will or the laws of descent and distribution, and during the Optionee's lifetime the Option may be exercised only by the Optionee or the Optionee's guardian or legal representative. Any attempt to transfer the Option in contravention of this Section shall be void ab initio. The Option shall not be subject to execution, attachment or other process. Notwithstanding the foregoing, while employed by the Corporation or any subsidiary thereof, the Optionee may, in Optionee's sole discretion, elect to transfer the Option to the Optionee's spouse, children or grandchildren (including adopted and step-children and grandchildren) ("Immediate Family"), to a trust solely for the benefit of the Optionee and Optionee's Immediate Family, or to a partnership or limited liability company whose only partners or shareholders are Optionee and members of Optionee's Immediate Family. Optionee shall provide the Corporation with written notice of any such election to transfer. Optionee's rights under this Agreement shall pass to the transferee, and such transferee may exercise the Option and all rights granted by this Agreement in full, to the extent Optionee was entitled to exercise the Option during the Term hereof.

        9.    Equitable Adjustments.    Subject to any required action by its shareholders, if the Corporation shall be a party to any reorganization, merger, dissolution or sale or lease of all or substantially all of its assets, whether or not the Corporation is the surviving entity, the Option shall be adjusted so as to apply to the securities to which the holder of the number of Shares of the Corporation subject to the Option would have been entitled by reason of such reorganization, merger, dissolution or sale or lease of all or substantially all of its assets. Further, subject to any required action by the Corporation's shareholders, upon the occurrence of an event which affects the Shares in such a way that an adjustment of the Option is appropriate in order to prevent the dilution or enlargement of rights under the Option, the Corporation shall make appropriate equitable adjustments, which may include, without limitation, adjustments to any or all of the number and kind of shares of Stock (or other securities) which may thereafter be issued in connection with the Option and adjustments to any Exercise Price specified in the Option. Notwithstanding any other provisions of this Section 9, the Corporation may satisfy any obligations to the Optionee hereunder by paying to the Optionee in cash the difference between the aggregate Exercise Price of the unexercised portion of the Option granted hereunder and the fair market value of the securities to which the Optionee would be entitled, upon exercise of such unexercised portion of the Option, regardless of whether all conditions of exercise relating to continuous employment have been satisfied. The Corporation may also give the Optionee the alternative of having the Corporation's obligations to the Optionee hereunder satisfied in cash as provided herein. For the purposes of this Agreement, the fair market value shall be the closing sale price on the stock exchange or national quotation system having the greatest volume of trading on the last trading day immediately prior to the date such notice is given. Adjustments under this Section or any determinations as to the fair market value of any securities shall be made by the Committee in accordance with the Plan, and any reasonable determination made by the Committee shall be binding and conclusive.

10.  Subdivision, etc.

    (a)
    In the event of any subdivision or subdivisions of the Shares as said Shares were constituted at the time the Option was granted into a greater number of Shares, the Corporation will thereafter deliver at the time of exercise thereof in addition to the number of Shares in respect of which the Option is then being exercised, such additional number of Shares as result from such subdivision or subdivisions for which the Option is being exercised without the Optionee being obligated to make any additional payment or giving any other consideration therefor.

    (b)
    In the event of any consolidation or consolidations of the Shares of the Corporation as said Shares were constituted at the time the Option was granted into a lesser number of Shares,

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      the Optionee shall accept, at the time of the exercise thereof in lieu of the number of Shares in respect of which the Option is then being exercised, the lesser number of Shares as result from such consolidation or consolidations of the Shares for which the Option is being exercised.

    (c)
    In the event of any change in the Shares of the Corporation as said Shares were constituted at the time of the Option was granted, the Corporation shall thereafter deliver at the time of the exercise thereof the number of shares of the appropriate class resulting from the said change as the Optionee would have been entitled to receive in respect of the number of Shares so purchased had the Option been exercised before such change.

    (d)
    If the Corporation at any time while the Option is outstanding shall pay any stock dividend or stock dividends upon the Shares in respect of which the Option was granted hereunder, the Corporation will thereafter deliver at the time of exercise thereof in addition to the number of Shares in respect of which the Option is then being exercised, the additional number of shares of the appropriate class as would have been payable on the Shares so purchased if they had been outstanding on the record date for the payment of said stock dividend or dividends.

    (e)
    Notwithstanding any other provision of this Agreement, the Corporation shall not be obligated to issue fractional Shares in satisfaction of its obligations hereunder.

    (f)
    If at any time the Corporation grants to the holders of its common stock rights to subscribe for and purchase pro rata additional securities of the Corporation or of any other corporation or entity, there shall be no adjustments made to the number of Shares or other securities subject to the Option in consequence thereof and the Option shall remain unaffected.

11.  Stock Appreciation Rights.

    (a)
    The Option may have a stock appreciation right attached to it, either at the time of grant, as set forth in Exhibit A hereto or by amendment to Exhibit A, adding the stock appreciation right after the time of the grant; subject, however, to the grant of such stock appreciation right being in compliance with applicable regulations and policies of any stock exchange or exchanges or national quotation system upon which any securities of the Corporation may from time to time be listed or admitted to quotation. The provisions of the Plan and this Agreement respecting the exercise of stock options and the adjustments to options arising from certain corporate actions shall apply mutatis mutandis to any stock appreciation right attached hereto. Any stock appreciation right attached hereto is exercisable to the extent, and only to the extent, that the Option is exercisable. To the extent a stock appreciation right attached to the Option is exercised, the Option shall be deemed to have been exercised to a similar extent.

    (b)
    A stock appreciation right attached hereto shall entitle the Optionee to elect to surrender to the Corporation, unexercised, the Option, or any portion thereof, and to receive from the Corporation in exchange therefor that number of Shares, disregarding any fractional Shares, having an aggregate value equal to the excess of the Fair Market Value of one Share (on the trading day immediately preceding the day the notice provided for in this Section 11 is received by the Corporation) over the Exercise Price per Share specified in Exhibit A hereto, times the number of Shares called for by the Option, or portion thereof, which is so surrendered.

    (c)
    Subject to the provisions of the Plan, a stock appreciation right attached hereto may be exercised from time to time by delivering to the Corporation at its head office a written notice of exercise, which notice shall specify (i) the number of Shares with respect to which the stock appreciation right is exercised and the Option is to be forfeited and (ii) the number of Shares

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      the Optionee elects to receive by such exercise. Such notice shall contain the Optionee's undertaking to comply, to the satisfaction of the Corporation and its counsel, with all applicable requirements of any stock exchange or exchanges or quotation system upon which any securities of the Corporation are listed for trading (or admitted to quotation) and any other applicable regulatory authority.

        12.    Representation.    The Optionee represents that when the Optionee exercises the Option, the Optionee will be purchasing the Optioned Shares for the Optionee's own account and not on behalf of others.

        13.    Shares To Be Reserved: Registration.    The Company shall at all times during the term of the Option reserve and keep available such number of Optioned Shares as will be sufficient to satisfy the requirements of this Agreement. Prior to the time the Optionee exercises the Option pursuant to Section 7, the Company shall use its best efforts to cause such shares to be registered on a Form S-8 (or other appropriate form).

        14.    Compliance with Laws.    Notwithstanding any other provision of this Agreement, the Company shall not be obligated to issue any Optioned Shares unless it is advised by counsel of its selection that it may do so without violation of any applicable laws pertaining to the issuance of securities, and may require any Optioned Shares so issued to bear a legend, may give its transfer agent instructions, and may take such other steps, as in its judgment are reasonably required to prevent any such violation.

        15.    No Rights in Optioned Shares.    The Optionee shall have none of the rights of a stockholder with respect to the Optioned Shares unless and until shares of Stock are issued upon exercise of the Option and the Optionee becomes the holder of record of such shares.

        16.    No Right to Employment.    Nothing in this Agreement shall interfere with or limit in any way the right of the Corporation to terminate the Optionee's employment at any time (with or without cause). Nothing contained herein shall be deemed to confer upon the Optionee any right to remain as an employee of the Corporation.

        17.    Modification.    No modification, variation, amendment or termination by mutual consent of this Agreement and no waiver of the performance of any of the responsibilities of any of the parties hereto shall be effected unless such action is taken in writing and is signed by both parties. No amendment to this Agreement shall be valid or binding unless set forth in writing and duly executed by all of the parties hereto. No waiver of any breach of any provision of this Agreement shall be effective or binding unless made in writing and signed by the party purporting to give the same and, unless otherwise provided in the written waiver, shall be limited to the specific breach waived. The failure of either party thereto to enforce at any time any provision of this Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.

        18.    Enforceability.    This Agreement shall be binding upon and enure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and permitted assigns. Nothing herein, expressed or implied, is intended to confer upon any person, other than the parties hereto and their respective heirs, executors, administrators, successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

        19.    Counterparts.    This Agreement may be executed in several counterparts, each of which so executed shall be deemed to be an original and such counterparts together shall constitute but one and the same instrument.

        20.    Governing Law.    This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein.

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        21.    Notices.    Any notice required or permitted under this Agreement shall be deemed given when delivered personally or when deposited in a United States or Canadian post office, postage prepaid, addressed, as appropriate to the Optionee at the last address specified in the Corporation's employment records for the Optionee, or such other address as the Optionee by notice in writing delivered pursuant to the provisions hereof, or to the Corporation, Attention: Corporate Secretary, or such other address as the Corporation may designate in writing to the Optionee.

        22.    Independent Legal Advice.    The Optionee acknowledges that he/she has been advised to seek independent legal advice before executing this Agreement and, in particular, the provisions of Section 6 hereof.

        23.    Interpretation.    The division of this Agreement into Sections, subsections and clauses and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement. The terms "this Agreement", "hereof", "herein", "hereunder" and similar expressions refer to this Agreement and the Schedules hereto and not to any particular Section, subsection, clause or other portion hereof and include any agreement or instrument supplementary or ancillary hereto.

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Exhibit A
To Employee Option Agreement

CAPITAL ENVIRONMENTAL RESOURCE INC.
1999 STOCK OPTION PLAN, AS AMENDED

        The Optionee identified below has been granted an Option to purchase shares of the common stock of the Corporation, in accordance with the terms of the Employee Option Agreement to which this Exhibit A is attached.

        A statement of certain terms of the Option, which has been granted, appears in the chart below. The terms shall have the meaning ascribed to them below when used in the Employee Option Agreement to which this Exhibit A is attached.

Optionee   David Feals

Grant Date

 

January 10, 2002

Effective Date, if different from Grant Date

 

N/A

Exercise Price per Share

 

US $3.99

Aggregate Number of Shares subject to Option (the "Option Shares")

 

250,000

Aggregate Number of Shares subject to Stock Appreciation Right, if any

 

N/A

        IN WITNESS WHEREOF, the parties hereby agree to the terms of this Exhibit A and the Employee Option Agreement to which it is attached. Execution of this Exhibit A by the Parties constitutes execution of the Employee Option Agreement to which is it attached.

Date:   January 10, 2002
  /s/  DAVID FEALS      
David Feals

Date:

 

January 10, 2002


 

CAPITAL ENVIRONMENTAL RESOURCE INC.

 

 

 

 

By:

 

/s/  
DAVID SUTHERLAND-YOEST      
David Sutherland-Yoest
Chairman of the Board and C.E.O.

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QuickLinks

EMPLOYEE OPTION AGREEMENT
W I T N E S S E T H
Exhibit A To Employee Option Agreement CAPITAL ENVIRONMENTAL RESOURCE INC. 1999 STOCK OPTION PLAN, AS AMENDED
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