Document:

exv10w4

Exhibit 10.4

AMENDMENT TO MASTER LOAN AND SECURITY AGREEMENT

     This Amendment to Master Loan and Security Agreement (this “Amendment”), dated as of August 12,
2011, is made and entered into by and between General Electric Capital Corporation (“Lender”) and
Choice Environmental Services, Inc. (“Debtor”).

WHEREAS, Debtor and Lender have entered into that certain Loan and Security Agreement dated as of
the date hereof (as amended and supplemented, the “Security Agreement”); and

WHEREAS, Debtor and Lender desire to amend the Security Agreement as set forth herein.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Debtor and Lender hereby agree as follows:

     Section 1. Security Agreement Amendments. The Security Agreement is hereby amended as
provided in this Section.

     (a) The second clause of the first sentence of Section 1.2 of the Security Agreement is hereby
amended by deleting such clause in its entirety and replacing it with the following:

the Equipment is free from and will be kept free from all liens, claims, security interests and
encumbrances other than that created hereby or those that have been approved by Lender, in writing;

     (b) The second clause of the first sentence of Section 2.2 of the Security Agreement is hereby
amended by deleting such clause in its entirety and replacing it with the following:

to extinguish or defend any action, proceeding or claim affecting the Equipment except those that
have been approved by Lender, in writing;

     (c) Section 3.5 of the Security Agreement is hereby amended by adding the following sentence
to the end of such Section:

Notwithstanding the foregoing, Lender shall maintain as confidential any Confidential Information
(as defined in that certain Confidentiality Agreement dated as of March 21, 2011, between Lender
and Debtor (the “Confidentiality Agreement”)) as provided in and required by the terms and
conditions of the Confidentiality Agreement.

     (d) Clause (e) of Section 5.1 of the Security Agreement is hereby amended by deleting such
clause in its entirety and replacing it with the following:

(e) (i) Debtor or a Guarantor becomes insolvent, ceases to do business as a going concern, makes an
assignment for the benefit of creditors, or takes advantage of any law for the relief of debtors,
or (ii) a petition in bankruptcy or for an arrangement, reorganization, or similar relief is filed
by or against Debtor or a Guarantor and is not dismissed within thirty (30) days, or (iii) any
material property of Debtor or a Guarantor is attached, or a trustee or receiver is appointed for
Debtor or a Guarantor or for substantial part of its property, or Debtor or a Guarantor applies for
such appointment;

     (e) Clause (f) of Section 5.1 of the Security Agreement is hereby amended by deleting such
clause in its entirety and replacing it with the following:

(f) any of the Equipment is lost or destroyed and Debtor does not pay Lender the full amount of all
indebtedness related to such Equipment within thirty (30) days of such loss or destruction;

     (f) Clause (p) of Section 5.1 of the Security Agreement is hereby amended by deleting such
clause in its entirety and replacing it with the following:

(p) [intentionally omitted];

 

 

     (g) Clause (q) of Section 5.1 of the Security Agreement is hereby amended by deleting such
clause in its entirety and replacing it with the following:

(q) there shall be any lien, claim or encumbrance on any of the Equipment except in favor of Lender
or as otherwise granted or permitted herein.

     (h) Section 7.2 of the Security Agreement is hereby amended by deleting the final sentence of
such Section and replacing it with the following:

Upon Lender’s assignment of Lender’s entire interest in this Agreement and assignee’s assumption of
Lender’s obligations hereunder, Lender shall be relieved, from and after the date of such
assignment, of any liability for the performance of any obligation of Lender contained in this
Agreement or any document executed in conjunction with this Agreement.

     (i) Clause (j) of Section 7.3 of the Security Agreement is hereby amended by deleting such
clause in its entirety and replacing it with the following:

(j) So long as any of the Liabilities remains unpaid or unperformed, Debtor will provide Lender
with such financial information as Lender may reasonably request, including copies of Debtor’s
financial statements within 45 days of the end of each of Debtor’s fiscal quarters and within 90
days after the end of each of Debtor’s fiscal years. Such financial statements shall be prepared in
accordance with GAAP and on the same basis (reviewed, audited, unaudited, etc.) as Debtor’s
financial statements are currently prepared unless advised by Lender otherwise, at which time
Debtor will comply with Lender’s request. Debtor represents and warrants that all financial
statements delivered will present fairly the financial condition and results of operations and cash
flows of the Debtor as of the dates thereof and for the periods then ended.

     (j) Clause (l) of Section 7.3 of the Security Agreement is hereby amended by deleting such
clause in its entirety and replacing it with the following:

(l) Debtor hereby agrees to indemnify, defend and hold harmless Lender and its Affiliates and
respective principals, directors, officers, employees, representatives, agents and third-party
advisors (each, an “Indemnified Party”) from and against any and all losses, disputes, claims,
expenses (including, without limitation, legal expenses), damages and liabilities of whatsoever
kind and nature (collectively, “Claims”) arising out of, in connection with, or relating to the
Equipment, this Agreement or any other document related hereto; provided, however, that Debtor
shall not be liable to indemnify an Indemnified Party pursuant to such indemnity to the extent that
a court of final jurisdiction determines that such Claims were caused by the gross negligence or
willful misconduct of such Indemnified Party. If allowed by law, the legal expenses shall include
the amount of any flat fee, retainer, contingent fee or the hourly charges of any attorney retained
by Lender in enforcing any of Lender’s rights hereunder or in the prosecution or defense of any
litigation related to this Agreement or the transactions contemplated by this Agreement. This
indemnification shall survive the termination or expiration of this Agreement.

     (k) The Delivery and Acceptance of Equipment Section of any Schedule A to the Security
Agreement is hereby amended by adding the following sentence to the end of such Section:

Notwithstanding the foregoing, Debtor’s acceptance of the Equipment as to Lender as provided in
this Schedule A shall not preclude or limit any of Debtor’s applicable rights against any
distributer or manufacturer of the Equipment.

     Section 2. Limitations. The amendment set forth herein is limited precisely as written and
shall not be deemed to (a) be a consent to, or waiver or modification of, any other term or
condition of the Security Agreement, or (b) prejudice any right or rights which Lender may now have
or may have in the future under or in connection with the Security Agreement or any of the other
documents referred to therein. Except as expressly modified hereby or by express written
amendments thereof, the terms and provisions of the Security Agreement or any other documents or
instruments executed in connection with the foregoing are and shall remain in full force and
effect. In the event of a conflict between this Amendment and any of the foregoing documents, the
terms of this Amendment shall be controlling.

     Section 3. Entire Agreement. This Amendment and the documents referred to herein represent
the entire understanding of the parties hereto regarding the subject matter hereof and supersede
all prior and contemporaneous oral and written agreements of the parties hereto with respect to the
subject matter hereof.

2

 

     Section 4. Counterparts. This Amendment may be executed in any number of counterparts and by
different parties on separate counterparts and all of such counterparts shall together constitute
one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered
by their respective duly authorized officers as of the date first above written.

LENDER: GENERAL ELECTRIC CAPITAL CORPORATION

By: /s/ Maria Nejeschleba

Name: Maria Nejeschleba

Title: Authorized Representative

DEBTOR: CHOICE ENVIRONMENTAL SERVICES, INC.

By: /s/ Thomas Aucamp

Name: Thomas Aucamp

Title: EVP

GUARANTOR CONSENT

The undersigned Guarantor confirms its guaranty obligations with respect to the Security Agreement
as amended and supplemented and consents to the Amendment set forth above and agrees that
Guarantor’s obligations and duties to Lender with regard to the Security Agreement shall not
be impaired or otherwise affected by the execution thereof.

	 	 	 
	GUARANTOR:

	 	GUARANTOR:
	By

	 	By
	TITLE

	 	TITLE
	DATE

	 	DATE

3exv10w5

Exhibit 10.5

August 12, 2011

LOAN COMMITMENT LETTER

Mr. Hugh H. Cooper

Senior Vice President and Treasurer

Swisher Hygiene, Inc.

4725 Piedmont Row Drive; Suite 400

Charlotte, NC 28210

Dear Hugh:

I am pleased to inform you that the credit committee of Wells Fargo Equipment Finance, Inc. has
approved your loan request in the amount totaling $18.6 million, subject to the conditions stated
below. The following is a summary of the conditions of the proposed transaction:

	 	 	 
	Borrower:

	 	Choice Environmental Services, Inc.
	 
	 	 
	Guarantors:

	 	Swisher Hygiene, Inc.; Swisher International, Inc.; HB Services, LLC; and all other guarantors under the Wells
Fargo Bank credit facility in place as of this date.
	 
	 	 
	Lender/Agent:

	 	Wells Fargo Equipment Finance, Inc., its successors or assigns
	 
	 	 
	Collateral:

	 	1) Certain vehicles now owned by Choice Environmental Services, Inc. and subsidiaries.
	 
	 	 
	 

	 	2) New and/or used vehicles to be acquired by Choice Environmental
Services, Inc. and subsidiaries.
	 
	 	 
	Purpose of Loan:

	 	Equipment Finance
	 
	 	 
	Loan Amount:

	 	1) For the existing vehicles the loan amount will be the
lesser of $13.6 million or 80% of the appraised orderly
liquidation value of the specific collateral.
	 
	 	 
	 

	 	2) For the new vehicles the loan amount will be 100% of the cost of
the vehicles not to exceed $5 million in aggregate total cost.
	 
	 	 
	 

	 	Borrower may use all or part of the commitment allocated to new
vehicles for used vehicles subject to appraisal with same terms and
conditions, and a similar average age, as the existing vehicles
referenced above.
	 
	 	 
	Pricing:

	 	1) For the existing or used vehicles, the applicable loan schedule will be priced at 270
basis points above the 4-year US Swap rate at the time each loan schedule is prepared.
	 
	 	 
	 

	 	2) For the new vehicles, the applicable loan schedule will be priced
at 285 basis points above the 5-year US Swap rate at the time each
loan schedule is prepared.
	 
	 	 
	Amortization:

	 	All loan schedules will be fully amortized over the term of the loan.

 

 

	 	 	 
	Loan Term:

	 	1) The existing or used vehicles will be on a 48-month term
	 
	 	 
	 

	 	2) The new vehicles will be on a 60-month term
	 
	 	 
	Frequency of Payment:

	 	Monthly in arrears
	 
	 	 
	Additional Costs:

	 	All reasonable out-of-pocket expenses and other
costs normally associated with an equipment loan
will be paid by the Borrower.
	 
	 	 
	Covenants:

	 	This loan and all promissory notes thereto shall be
cross-defaulted to the Wells Fargo Bank credit
facility.
	 
	 	 
	Fee:

	 	A fee of $30,000 shall be paid to Lender/Agent at
closing to offset Lender/Agent’s cost for arranging
an Agency Agreement and Titling Trust to service the
loan.
	 
	 	 
	Appraisal Fee:

	 	1) For the existing vehicles, Lender/Agent will
engage an outside firm to appraise the vehicles at
the direction of and subject to the required scope
of Lender/Agent’s Equipment Management Group. This
fee will be paid by Lender/Agent to the appraisal
firm and reimbursed to Lender/Agent by Borrower.
	 
	 	 
	Documentation:

	 	Lender/Agent will prepare all necessary
documentation using Lender/Agent’s documents.
Lender/Agent will bill, collect and act as titling
agent for all collateral hereunder.
	 
	 	 
	Documentation Fee:

	 	For the initial two loan schedules, a $1,500
documentation fee per loan schedule will be
collected at each funding for a total of $3,000.
For each subsequent loan schedule, a $500
documentation fee per loan schedule will be
collected at each funding.
	 
	 	 
	Prepayment Penalty:

	 	1) For the equipment financed under any loan
schedule with a term of 48-months, any loan schedule
may be prepaid in whole at any time by paying to
Lender/Agent the unpaid principal balance thereof,
determined by using the simple interest method at
the rate set forth herein plus all other amounts due
and owing and a prepayment premium of 3% during
months 1-12, 2% during months 13-24, and 1% during
months 25-36. After month 36 there will be no
prepayment penalty.
	 
	 	 
	 

	 	2) For the equipment financed under any loan schedule with a term of
60-months, any loan schedule may be prepaid in whole at any time by
paying to Lender/Agent the unpaid principal balance thereof,
determined by using the simple interest method at the rate set forth
herein plus all other amounts due and owing and a prepayment premium
of 4% during months 1-12, 3% during months 13-24, 2% during months
25-36, and 1% during months 37-48. After month 48 there will be no
prepayment penalty.
	 
	 	 
	Insurance Requirements:

	 	Wells Fargo Equipment Finance, Inc. requires adequate insurance on the
collateral and to be named as Loss Payee.

This commitment must be accepted by returning the signed duplicate of this commitment letter to
Wells Fargo Equipment Finance, Inc. on or before the close of business on August 12, 2011. If the
full commitment amount of $18.6 million is not utilized before June 30, 2012, the remaining amount
of the commitment will expire and the credit and terms must be reviewed and will be subject to
change based upon the then current economic conditions.

This commitment will survive execution and delivery of the Master Loan and Security Agreement and
related documents (the “Loan Documents”) to be executed and delivered by Lender and Borrower in
connection with transactions contemplated herein but will be subject to the terms and conditions of
such Loan Documents. This commitment will terminate upon the occurrence of an Event of Default
under and as defined in that certain Credit
Agreement dated March 30, 2011 between Swisher Hygiene, Inc. and Wells Fargo Bank, National
Association or under and as defined in the Loan Documents.

Page 2 of 3

 

In consideration of Wells Fargo Equipment Finance, Inc. making this commitment, an Agent
Syndication Fee of $30,000.00 shall be due with this letter. If through no fault of Wells Fargo
Equipment Finance, Inc. this commitment is not utilized, this fee is non-refundable.

This commitment will terminate and we will have no obligation to advance loan proceeds if on the
day the loan is closed the rate of interest, adjusted by any other finance charges set forth
herein, is usurious.

Funding under this commitment is further subject to receipt of all required loan and syndication
documentation, signed and dated and in form and substance reasonably acceptable to Wells Fargo
Equipment Finance, Inc. and its successors and assigns.

This commitment is subject to the terms as outlined and other reasonable and customary conditions
precedent to close for transactions of this type.

If the foregoing is acceptable, please so indicate by signing this letter in the space provided
below and returning it, along with the Agent Syndication Fee.

Sincerely,

/s/ Daniel DeVries

Daniel DeVries

Vice President – Syndications

This commitment is accepted this 12th day of August, 2011, and the undersigned
agrees to be bound by all of the above terms.

Choice Environmental Services, Inc.

By:  /s/ Thomas Aucamp    
           Its:  EVP
      

Page 3 of 3

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