Document:

exv10w1

EXHIBIT 10.1

FORM
OF
SECURITIES PURCHASE AGREEMENT

     This Securities Purchase Agreement (this “Agreement”) is dated as of March ___, 2011, by and
among Swisher Hygiene Inc., a Delaware corporation (the “Company”), and each purchaser identified
on the signature pages hereto (each, including its successors and assigns, a “Purchaser” and
collectively, the “Purchasers”).

RECITALS

          A. The Company and each Purchaser is executing and delivering this agreement in reliance upon
the exemption from securities registration afforded by Section 4(2) of the Securities Act of 1933,
as amended (the “U.S. Securities Act”), and Rule 506 of Regulation D (“Regulation D”) as
promulgated by the United States Securities and Exchange Commission under the Securities Act.

          B.
The Company desires to issue and sell up to an aggregate of _________ Common Shares.

          C. Each Purchaser, severally and not jointly, wishes to purchase, and the Company wishes to
sell, upon the terms and conditions stated in this Agreement, that aggregate number of Common
Shares set forth in the Subscription Agreement (as defined below) signed by each Purchaser.

          D. Contemporaneously with the execution and delivery of this Agreement, the parties hereto are
executing and delivering a Subscription Agreement, (the “Subscription Agreement”), pursuant to
which, among other things, the Company will agree to provide certain registration rights with
respect to the Common Shares under the Securities Act and applicable state securities laws.

     NOW, THEREFORE, IN CONSIDERATION of the premises and the mutual promises, representations,
warranties, covenants, conditions and agreements contained in this Agreement, and for other good
and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company
and the Purchasers hereby agree as follows:

TERMS AND CONDITIONS

	1.	 	Definitions. As used in this Agreement, unless the context otherwise requires:

	 	(a)	 	“1934 Act” means the United States Securities and Exchange Act of 1934, as
amended and the rules and regulations promulgated thereunder, including judicial and
administrative interpretations thereof;
	 
	 	(b)	 	“Action” has the meaning ascribed thereto in Section 5.2(aa) of this Agreement;
	 
	 	(c)	 	“affiliate”, “distribution” and “insider” have the respective meanings ascribed
to them under applicable Securities Laws and “affiliate” shall, without limitation,
also include persons who are “affiliates” within the meaning ascribed to this term in
Rule 144(a)(1) under the 1934 Act;
	 
	 	(d)	 	“Business Day(s)” means any day other than a Saturday or Sunday or any other
day in which the banks located in Charlotte, North Carolina are not open for business;
	 
	 	(e)	 	“Closing” means the completion of the delivery and sale of the Common Shares
and payment of the aggregate Subscription Price;

 

 

	 	(f)	 	“Closing Date” means no later than (i) two business days after the satisfaction
of the conditions set forth in Section 8 of this Agreement by all parties hereto, and
(ii) March 23, 2011 or such other date as may be agreed upon by the Company and each
Purchaser as the Closing Date of the Offering;
	 
	 	(g)	 	“Closing Time” means 8:30 a.m. (Charlotte time) on the Closing Date or such
other date or time as the Company and the Purchasers may decide;
	 
	 	(h)	 	“Common Share” has the meaning ascribed thereto on the cover page of this
Agreement;
	 
	 	(i)	 	“Company” has the meaning ascribed thereto on the cover page of this Agreement;
	 
	 	(j)	 	“Company Material Adverse Effect” means any event, occurrence, change or effect
that, individually or in the aggregate with all other events, circumstances,
developments, changes and effects, is materially adverse to the affairs, business,
operations, prospects, assets, financial condition, or results of operations of the
Company and the Subsidiaries taken as a whole or would reasonably be expected to
prevent or materially delay the consummation of the transactions contemplated by this
Agreement or prevent or materially impair or delay the ability of the Company to
perform its obligations hereunder, other than any event, occurrence, change or effect
to the extent resulting from any one or more of the following (i) the execution and
delivery of this Agreement, the pendency or public disclosure of this Agreement or the
transactions contemplated by this Agreement (or any action taken by a party in response
to such announcement), or the consummation of the transactions contemplated by this
Agreement or (ii) any outbreak or escalation of hostilities or war or any act of
terrorism;
	 
	 	(k)	 	“Company Permits” has the meaning ascribed thereto in Section 5.2(x) of this
Agreement;
	 
	 	(l)	 	“Consistently Applied” has the meaning ascribed thereto is Section 5.2(y)(i) of
this Agreement;
	 
	 	(m)	 	“Contract” has the meaning ascribed thereto in Section 5.2(w) of this
Agreement;
	 
	 	(n)	 	“Disclosure Documents” means each document filed with or furnished to the SEC
pursuant to Section 13(a) or 15(d) of the 1934 Act since November 9, 2010;
	 
	 	(o)	 	“Environmental Laws” has the meaning ascribed thereto in Section 5.2(ff)(ii)(A)
of this Agreement;
	 
	 	(p)	 	“Environmental Permits” has the meaning ascribed thereto in Section
5.2(ff)(ii)(B) of this Agreement;
	 
	 	(q)	 	“Exemptions” means the exemption from the prospectus and registration
requirements under applicable Securities Laws, in respect of the issue of the Common
Shares;
	 
	 	(r)	 	“ERISA” has the meaning ascribed thereto in Section 5.2(bb)(ii) of this
Agreement;
	 
	 	(s)	 	“Financial Statements” has the meaning ascribed thereto in Section 5.2(y)(i) of
this Agreement;

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	 	(t)	 	“GAAP” has the meaning ascribed thereto in Section 5.2(y) of this Agreement;
	 
	 	(u)	 	“General Solicitation or General Advertising” means “general solicitation or
general advertising”, as used under Rule 502(c) under the U.S. Securities Act,
including advertisements, articles, notices or other communications published in any
newspaper, magazine or similar media or broadcast over radio, television, or
telecommunications, including electronic display or the Internet, or any seminar or
meeting whose attendees had been invited by general solicitation or general
advertising;
	 
	 	(v)	 	“Government Official” means any (a) officer, employee or other individual
acting in an official capacity for a Governmental Authority), or any officer employee
or other individual acting in an official capacity for a public international
organization or (b) political party or official thereof or any candidate for any
political office;
	 
	 	(w)	 	“Governmental Authority” means any U.S. or Canadian domestic or foreign
government, whether federal, state, local, regional, municipal or other political
jurisdiction, and any agency, authority, instrumentality, court, tribunal, board,
commission, bureau, arbitrator, arbitration tribunal or other tribunal, or any
quasi-governmental or other entity, insofar as it exercises a legislative, judicial,
regulatory, administrative, expropriation or taxing power or function of or pertaining
to government;
	 
	 	(x)	 	“Hazardous Substances” has the meaning ascribed thereto in Section
5.2(ff)(ii)(C) of this Agreement;
	 
	 	(y)	 	“Intellectual Property” has the meaning ascribed thereto in Section 5.2(dd)(ii)
of this Agreement;
	 
	 	(z)	 	“Investments” has the meaning ascribed thereto in Section 5.2(s)(iii) of this
Agreement;
	 
	 	(aa)	 	“Law” has the meaning ascribed thereto in Section 5.2(w) of this Agreement;
	 
	 	(bb)	 	“Lease Documents” has the meaning ascribed thereto in Section 5.2(cc)(ii) of
this Agreement;
	 
	 	(cc)	 	“Leased Properties” has the meaning ascribed thereto in Section 5.2(cc)(ii) of
this Agreement;
	 
	 	(dd)	 	“Licensed Intellectual Property” has the meaning ascribed thereto in Section
5.2(dd)(i) of this Agreement;
	 
	 	(ee)	 	“lien” means any mortgage, pledge, lien, encumbrance, charge or other security
interest;
	 
	 	(ff)	 	“material” means material in relation to the Company and its Subsidiaries
considered on a consolidated basis;
	 
	 	(gg)	 	“Material Subsidiaries” means the Subsidiaries whose assets or revenues,
calculated on an individual basis, represent more than 10% of the consolidated assets
or revenues of the Company;
	 
	 	(hh)	 	“Most Recent Balance Sheet” has the meaning ascribed thereto in Section
5.2(y)(ii) of this Agreement;

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	 	(ii)	 	“Offering” has the meaning ascribed thereto on the cover page of this
Agreement;
	 
	 	(jj)	 	“Owned Intellectual Property” has the meaning ascribed thereto in Section
5.2(dd)(i) of this Agreement;
	 
	 	(kk)	 	“Permitted Liens” means with respect to any assets of the Company (i)
mechanic’s materialmen’s and similar liens with respect to amounts not past due, (ii)
liens for income Taxes or other Taxes not yet due and payable or for income Taxes or
other Taxes that the taxpayer is contesting in good faith pursuant to proceedings
disclosed in the Disclosure Documents, (iii) purchase money liens arising by operation
of law (including liens on inventory and other assets in favour of vendors of the
Company) and (iv) liens securing rental payments under capital lease arrangements
disclosed in the Disclosure Documents;
	 
	 	(ll)	 	“Plans” has the meaning ascribed thereto in Section 6.2(bb)(ii) of this
Agreement;
	 
	 	(mm)	 	“Purchaser” has the meaning ascribed thereto in the cover page of this Agreement;
	 
	 	(nn)	 	“Release” has the meaning ascribed thereto in Section 6.2(ff)(ii)(D) of this
Agreement;
	 
	 	(oo)	 	“Registration Statement” has the meaning ascribed thereto in Schedule “D” to
the Subscription Agreement;
	 
	 	(pp)	 	“Regulation D” has the meaning given such term in the Recitals;
	 
	 	(qq)	 	“Regulation M” means Regulation M promulgated under the 1934 Act;
	 
	 	(rr)	 	“SEC” means the United States Securities and Exchange Commission;
	 
	 	(ss)	 	“Securities” means the Common Shares;
	 
	 	(tt)	 	“Securities Laws” means, as applicable, the securities laws, regulations,
rules, rulings and orders, and the notices, policies and written interpretations issued
by the Securities Regulators in each of the jurisdictions of the Subscribers, and the
rules of the Toronto Stock Exchange and NASDAQ Global Market;
	 
	 	(uu)	 	“Securities Regulators” means the Securities and Exchange Commission or other
securities regulatory authorities of the jurisdictions of the Subscribers;
	 
	 	(vv)	 	“Stock Exchanges” means the Toronto Stock Exchange and the NASDAQ Global
Market;
	 
	 	(ww)	 	“Subscriber” means each of the Purchasers which are purchasers of Common Shares
and “Subscribers” means all of the Purchasers which are purchasers of the Common
Shares;
	 
	 	(xx)	 	“Subscription Agreements” has the meaning given such term in the Recitals;
	 
	 	(yy)	 	“Subscription Price” has the meaning ascribed thereto on the cover page of this
Agreement;
	 
	 	(zz)	 	“Subsidiaries” any entity of which more than 50 percent of the voting
securities are directly or indirectly owned by the Company and the financial statements
of which are
consolidated with those of the Company and “Subsidiary” means any one of the Subsidiaries;

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	 	(aaa)	 	“Taxes” has the meaning ascribed hereto in Section 5.2(ee)(v)(A) of this Agreement;
	 
	 	(bbb)	 	“Tax Returns” has the meaning ascribed thereto in Section 5.2(ee)(v)(B) of
this Agreement;
	 
	 	(ccc)	 	“to the knowledge of” means (unless otherwise expressly stated), with respect
to the Company, a statement of the actual knowledge, after having made reasonable
enquiries (such reasonable enquiries not needing to include enquiries of third
parties), of Steve Berrard, Tom Byrne and Tom Aucamp of the facts or circumstances to
which such phrase relates;
	 
	 	(ddd)	 	“United States” means the United States of America, its territories and
possessions, any state of the United States, and the District of Columbia;
	 
	 	(eee)	 	“U.S. Securities Act” has the meaning ascribed thereto in the Recitals;
	 
	 	(fff)	 	“U.S. Securities Laws” means the applicable blue sky or securities legislation
in the United States, together with the 1934 Act and the U.S. Securities Act and the
rules and regulations of the SEC or state securities authority thereunder; and

	2.	 	Interpretation. For the purposes of this Agreement, except as otherwise expressly provided or
unless the context otherwise requires:

	 	(a)	 	“this Agreement” means this Securities Purchase Agreement;
	 
	 	(b)	 	any reference in this Agreement to a designated “Section”, “Subsection”,
“Paragraph”, “Schedule” or other subdivision refers to the designated section,
subsection, paragraph, schedule or other subdivision of this Agreement;
	 
	 	(c)	 	the words “herein” and “hereunder” and other words of similar import refer to
this Agreement as a whole and not to any particular section or other subdivision of
this Agreement;
	 
	 	(d)	 	the word “including”, when following any general statement, term or matter, is
not to be construed to limit such general statement, term or matter to the specific
items or matters set forth immediately following such word or to similar items or
matters, whether or not non-limiting language (such as “without limitation” or “but not
limited to” or words of similar import) is used with reference thereto but rather
refers to all other items or matters that could reasonably fall within the broadest
possible scope of such general statement, term or matter;
	 
	 	(e)	 	any reference to a statute includes and, unless otherwise specified herein, is
a reference to such statute and to the regulations made pursuant thereto, with all
amendments made thereto and in force from time to time, and to any statute or
regulations that may be passed which have the effect of supplementing or superseding
such statute or such regulation;
	 
	 	(f)	 	any reference to “party” or “parties” means the Company, each Purchaser, or all
of them, as the context requires;

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	 	(g)	 	the headings in this Agreement are for convenience of reference only and do not
affect the interpretation of this Agreement; and
	 
	 	(h)	 	words importing the masculine gender include the feminine or neuter gender and
words in the singular include the plural, and vice versa.

3.            Sale of Shares. The Common Shares will be sold by way of the exemption from registration under
the U.S. Securities Act provided by Section 4(2) thereof and Rule 506 of Regulation D thereunder
and (i) in the United States pursuant to the exemption for sales to accredited investors as such
term is defined under applicable Securities Laws, and (ii) in such other jurisdictions (other than
Canada) (in accordance with local laws) as may be agreed to by the Company and each Purchaser
provided that the Company is not required to file a prospectus or other disclosure document or
become subject to reporting obligations in such jurisdictions. The Company shall issue and sell
the Common Shares at the Closing Time, in accordance with and subject to the provisions of this
Agreement and the Subscription Agreements.

4.            Offering Procedures.

4.1           Each Subscriber of Common Shares will purchase Common Shares and the Company will issue and
sell the Common Shares pursuant to exemptions from applicable prospectus and registration
requirements under Securities Laws of the jurisdiction of residence of the Subscriber or such other
jurisdiction as may be applicable to the Subscriber and as contemplated by the Subscription
Agreements. Each Subscriber will enter into a Subscription Agreement with the Company.

4.2           The Company will use its best efforts to file or cause to be filed all documents required to be
filed by the Company in connection with the purchase and sale of the Common Shares so that the
distribution of the Common Shares may lawfully occur on an exempt basis.

4.3           The Company covenants that it will, as soon as reasonably practicable after the Closing,
prepare and file the Registration Statement as set out in Schedule “D” to the Subscription
Agreement.

4.4           The Company will promptly inform each Purchaser of the receipt by the Company of any material
communication from the Securities Regulators or any other securities regulatory authority of any
other jurisdiction, the Stock Exchanges or the Company’s other filings with the SEC.

5.            Representations and Warranties of the Company.

5.1            Each officers’ certificate required to be provided in accordance with the terms of this
Agreement, signed by any officer of the Company and delivered to each Purchaser, will constitute a
representation and warranty by the Company to each Purchaser, as the case may be, as to the matters
covered by the certificate.

5.2           The Company represents and warrants to each Purchaser and acknowledges that each Purchaser is
relying upon such representations and warranties in connection with its execution and delivery of
this Agreement that:

	 	(a)	 	the Subscription Agreements have been duly authorized, executed and delivered
by the Company and, assuming due authorization, execution and delivery by the other
parties thereto, is, or will be, a legal, valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except as that
enforcement may be limited by bankruptcy, insolvency and other laws affecting the
rights of creditors
generally and except that equitable remedies may be granted only in the discretion
of a court of competent jurisdiction;

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	 	(b)	 	the Common Shares to be issued by the Company and/or sold pursuant to this
Agreement and the Subscription Agreements will be duly authorized for that issuance and
sale by all necessary action on the part of the Company and, when issued and delivered
by the Company against payment of the applicable consideration, the Common Shares
issued pursuant to this Agreement and the Subscription Agreements, will have been
validly issued, will be outstanding as fully paid and non-assessable and will not have
been issued in violation of or subject to any pre-emptive rights or other contractual
rights to purchase securities issued by the Company or in violation of any applicable
law;
	 
	 	(c)	 	the Company is a reporting issuer under U.S. Securities Laws and the securities
laws of the Provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario,
Québec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador and
a registrant under the 1934 Act, and is not in default in any material respect of any
requirement of such securities laws and the Company is not included on a list of
defaulting reporting issuers maintained by the Securities Regulators of the Provinces
of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, New Brunswick,
Nova Scotia, Prince Edward Island, Newfoundland and Labrador;
	 
	 	(d)	 	no order ceasing or suspending trading in securities of the Company,
prohibiting the sale of such securities, has been issued to the Company, directors or
officers and, to the knowledge of the Company, no such investigations or proceedings
for such purposes are pending or threatened;
	 
	 	(e)	 	[Intentionally Left Blank.]
	 
	 	(f)	 	the Common Shares will not be subject to a restricted period or to a statutory
hold period under the Securities Laws or to any resale restriction under the policies
of the Stock Exchanges other than as described in the Subscription Agreement;
	 
	 	(g)	 	the Company will use the proceeds of the Offering in the manner described in
the Subscription Agreement;
	 
	 	(h)	 	since August 18, 2010, the Company has been in compliance in all material
respects with its continuous disclosure obligations under applicable Securities Laws;
	 
	 	(i)	 	all the statements set forth in the Disclosure Documents were true, correct,
and complete in all material respects;
	 
	 	(j)	 	other than as disclosed in the Disclosure Documents, no fact or change has
arisen or has been discovered relating to or involving the Company which would have
been required to have been stated in the Disclosure Documents had the fact arisen or
been discovered on, or prior to, the date of such Disclosure Documents, and, except as
have been disclosed in the Disclosure Documents, the Company has not suffered a Company
Material Adverse Effect since November 2, 2010 and the Company has not suffered a
Company Material Adverse Effect in relation to the Common Shares;

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	 	(k)	 	the Company’s auditors are independent public accountants as required under
applicable Securities Laws, are qualified to act as auditors of the Company under the
applicable
Securities Laws, and there has never been a reportable disagreement (within the
meaning of the applicable Securities Laws) between the Company and the Company’s
auditors;
	 
	 	(l)	 	during the period in which the Common Shares are offered for sale, the Company
did not and will not authorize any person acting on its or their behalf to take any
action that would cause the exemption afforded by Section 4(2) of the U.S. Securities
Act or Rule 506 thereunder to be unavailable for offers and sales of the Common Shares,
pursuant to this Agreement;
	 
	 	(m)	 	neither the Company, nor any of its affiliates, nor any person authorized to
act on its behalf have engaged or will engage in any form of General Solicitation or
General Advertising with respect to offers or sales of the Common Shares;
	 
	 	(n)	 	the Company has not, for a period of six months prior to the date hereof sold,
offered for sale or solicited any offer to buy any of its securities in the United
States in a manner that would be “integrated” with the Offering and that would cause
the exemption afforded by Section 4(2) of the U.S. Securities Act and Rule 506 of
Regulation D to be unavailable for offers and sales of the Common Shares;
	 
	 	(o)	 	during the period in which the Common Shares are offered for sale, neither the
Company nor any of its affiliates, nor any person authorized to act on its behalf has
taken or will take, directly or indirectly, any action that would constitute a
violation of Regulation M of the SEC under the 1934 Act;
	 
	 	(p)	 	the Company shall cause a Form D to be filed with the SEC within 15 days of the
first sale of Common Shares and shall, unless directed to the contrary by the
Purchasers with regard to any jurisdiction in which there is a reliance on a state
institutional exemption that does not require the making of any filing, make such other
filings as shall be required by applicable state Securities Laws to secure exemption
from registration under such securities laws for the sale of the Common Shares in such
states;
	 
	 	(q)	 	neither the Company nor any of the affiliates thereof has been subject to any
order, judgment or decree of any court of competent jurisdiction temporarily,
preliminarily or permanently enjoining such person for failure to comply with Rule 503
of Regulation D concerning the filing of notice of sales on Form D;
	 
	 	(r)	 	the Company is not now and, as a result of the transactions contemplated by
this Agreement and the Subscription Agreements, will not be an “investment company” (as
defined in the United States Investment Company Act of 1940) that is or will be
required to be registered under Section 8 of that Act;

	 	(s)	(i)	 	the Company and each Subsidiary of the Company is a corporation duly
incorporated, validly existing and in good standing under the laws of the jurisdiction
of its incorporation and has the requisite corporate or other power and authority and
all necessary governmental approvals to own, lease and operate its properties and to
carry on its business as it is now being conducted. The Company and each Subsidiary is
duly qualified or licensed as a foreign corporation to do business, and is in good
standing, in each jurisdiction where the character of the properties owned, leased or
operated by it or the nature of its business makes such qualification or licensing
necessary, except for such failures to be so qualified or licensed and in good standing
that would not reasonably be expected to have a Company Material Adverse Effect;

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	 	(ii)	 	a true and complete list of all Material Subsidiaries, together
with the jurisdiction of incorporation, or formation, of each such Subsidiary
and the percentage of the outstanding capital stock or other equity interests
of each such Subsidiary owned by the Company, each other Subsidiary and any
other person, is set forth in the Disclosure Documents; and
	 
	 	(iii)	 	the Disclosure Documents list any and all persons of which the
Company directly or indirectly owns an equity or similar interest, or an
interest convertible into or exchangeable or exercisable for an equity or
similar interest, of less than 50% of such person (collectively, the
“Investments”);

	 	(t)	 	the Company has made available to each Purchaser a complete and correct copy of
the articles of incorporation and the bylaws each as amended to date, of the Company
and each Subsidiary. Such articles of incorporation and bylaws are in full force and
effect and no other organizational documents are applicable or binding upon the Company
or any of its Subsidiaries. Neither the Company nor any Subsidiary is currently in
violation of any material provision of its articles of incorporation or bylaws or
similar organizational documents in any material respect;

	 	(u)	(i)	 	as of the date of this Agreement, the authorized capital stock of the
Company consists of Common Shares, of which 136,157,351 are issued and outstanding (of
which 8,281,924 are pending issuance by transfer agent). Each outstanding Common Share
is duly authorized, validly issued, fully paid and nonassessable and was issued free of
preemptive (or similar) rights; and

	 	(ii)	 	except as described in the Disclosure Documents and in this
Agreement, there are no (A) options, warrants or other rights, agreements,
arrangements or commitments of any character relating to the issued or unissued
capital stock of the Company or any Subsidiary or obligating the Company or any
Subsidiary or any shareholder of the Company to issue or sell any shares of
capital stock of, or other equity interests in, the Company or any Subsidiary,
(B) voting securities of the Company or securities convertible, exchangeable or
exercisable for shares of capital stock or voting securities of the Company, or
(C) equity equivalents, interests in the ownership or earnings of the Company
or any Subsidiary or rights with respect to the foregoing. All shares of
Common Stock reserved for issuance as aforesaid, upon issuance on the terms and
conditions specified in the instruments pursuant to which they are issuable,
will be duly authorized, validly issued, fully paid and nonassessable and free
of preemptive (or similar) rights. All securities of the Company have been
issued in compliance with all applicable Laws, except to the extent that any
non-compliance will not result in any Company Material Adverse Effect;

	 	(v)	 	the Company has all necessary power and authority to execute and deliver this
Agreement and the Subscription Agreements, and to perform its obligations thereunder.
The execution and delivery of this Agreement by the Company have been duly authorized
by all necessary corporate action and no other corporate proceedings on the part of the
Company are necessary to authorize this Agreement. This Agreement has been duly and
validly executed and delivered by the Company and, assuming the due authorization,
execution and delivery by each Purchaser constitutes a legal, valid and binding
obligation of the Company, enforceable against it in accordance with its terms, except
as that enforcement may be limited by bankruptcy, insolvency and other laws
affecting the rights of creditors generally and except that equitable remedies may
be granted only in the discretion of a court of competent jurisdiction;

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	 	(w)	 	the execution and delivery of this Agreement and the Subscription Agreements by
the Company does not, and the performance by the Company of its obligations under this
Agreement and the Subscription Agreements does not and will not, (i) conflict with or
result in a violation or breach of the Articles of Incorporation or Bylaws (or similar
organizational documents) of the Company, (ii) except for post-closing filings made in
the ordinary course for transactions of the kind set out in this Agreement and the
Subscription Agreements, conflict with or violate any statute, law, ordinance,
regulation, rule, common law, code, executive order, judgment, decree or other order
(“Law”) applicable to the Company or by which any property or asset of the Company is
bound or affected, or (iii) result in any breach or violation of or constitute a
default (or an event which, with notice or lapse of time or both, would become a
default) under, require consent or result in a material loss of a material benefit
under, give rise to a right or obligation to purchase or sell assets or securities
under, give to others any right of termination, amendment, acceleration or cancellation
of, or result in the creation of a Lien on any material property or asset of the
Company or any Subsidiary pursuant to, any note, bond, mortgage, indenture, contract
(written or oral), agreement, lease, license, permit, franchise or other binding
commitment, instrument or obligation (each, a “Contract”) to which the Company or any
Subsidiary is a party or by which the Company or a Subsidiary or any material property
or asset of the Company or any Subsidiary is bound or affected, except, with respect to
clauses (ii) and (iii), for any such conflicts, violations, breaches, defaults or other
occurrences which would not reasonably be expected to have a Company Material Adverse
Effect;
	 
	 	(x)	 	the Company and each Subsidiary is in possession of all material franchises,
grants, authorizations, licenses, permits, easements, variances, exceptions, consents,
certificates, approvals and orders of any Governmental Authority necessary for each
such entity to own, lease and operate its material properties or to carry on its
business substantially as it is now being conducted (the “Company Permits”), and no
suspension or cancellation of any of the Company Permits is pending or, to the
knowledge of the Company, threatened. Neither the Company nor any Subsidiary is
operating in material violation of: (a) any Law applicable to such entity or by which
any property or asset of such entity is bound or affected, and (b) any Company Permit
to which such entity is a party or by which such entity or any such property or asset
of such entity is bound, except in any case for any such violations which would not
have a Company Material Adverse Effect. Neither the Company nor any Subsidiary has
received written notice of any default, and, to the Company’s knowledge, no event has
occurred which, with notice or lapse of time or both would constitute a default;

	 	(y)	(i)	 	the financial statements in the Disclosure Documents (the “Financial
Statements”) have been prepared in accordance with U.S. generally accepted accounting
principles (“GAAP”), applied on a consistent basis throughout the periods involved
(except to the extent required by changes in GAAP or as may be indicated in the notes
thereto, if any) (hereinafter, “Consistently Applied”) and present fairly, in all
material respects, the consolidated or combined financial position of the Company and
its Subsidiaries as of the respective dates thereof and the results of operations for
the periods indicated; and

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	 	(ii)	 	neither the Company nor any Subsidiary have any liabilities,
obligations or commitments (including without limitation, liabilities,
obligations or
commitments to fund any operations or work or to give any guarantees or for
Taxes) whether accrued, absolute, contingent or otherwise, of the type
required by GAAP to be reflected or reserved against on the balance sheets
except (i) to the extent reflected, reserved or taken into account in the
balance sheet of Swisher International, Inc. and its subsidiaries as of
September 30, 2010 (and included in the Form 10 of the Company), including
all notes thereto, if any and the most recently filed balance sheet of the
Company in the Disclosure Documents (collectively, the “Most Recent
Balance Sheet”) and not heretofore paid or discharged, (ii) liabilities
incurred in the ordinary course of business consistent with past practice
since the date of the Most Recent Balance Sheet (none of which relates to
breach of contract, breach of warranty, tort, infringement or violation of
law, or which arose out of any action, suit, claim, governmental
investigation or arbitration proceeding), (iii) normal accruals,
reclassifications, and audit adjustments which would be reflected on an
audited financial statement and which would not be material on a
consolidated basis, (iv) liabilities incurred in the ordinary course of
business consistent with past practice prior to the date of the Most Recent
Balance Sheet which, in accordance with GAAP Consistently Applied, were not
recorded thereon, and (v) except as would not result in a Company Material
Adverse Effect;

	 	(z)	 	except in connection with the transactions contemplated by this Agreement,
during the period beginning on November 9, 2010 and ending on the date hereof, the
Company (on a consolidated basis) has conducted its business, in all material respects,
in the ordinary course consistent with past practice;
	 
	 	(aa)	 	there is no litigation, suit, claim, action, proceeding, hearing, petition,
grievance, complaint or investigation (an “Action”) pending or, to the
knowledge of the Company, threatened against the Company or any Subsidiary, or any
property or asset of the Company or any Subsidiary, before any Governmental Authority
or arbitrator that would reasonably be expected to have a Company Material Adverse
Effect. As of the date of this Agreement, to the Company’s knowledge no officer or
director of the Company is a defendant in any Action in connection with his status as
an officer or director of the Company or any Subsidiary. Other than pursuant to
Articles of Incorporation, Bylaws or other organizational documents, no Contract
between the Company or any Subsidiary and any current or former director or officer
exists that provides for indemnification. Neither the Company nor any Subsidiary nor
any property or asset of the Company or any Subsidiary is subject to any continuing
order of, consent decree, settlement agreement or other similar written agreement with,
or, to the knowledge of the Company, continuing investigation by, any Governmental
Authority, or any order, writ, judgment, injunction, decree, determination or award of
any Governmental Authority. Neither the Company nor any Subsidiary has received
written notice of any default, and, to the Company’s knowledge, no event has occurred
which, with notice or lapse of time or both, would constitute a default by the Company
or the applicable Subsidiaries in connection with any of the foregoing which would
result in a Company Material Adverse Effect;

	 	(bb)	(i)	 	except as set forth in the Disclosure Documents, the Company is not a party
to or bound by any collective bargaining agreement or any other agreement with a labor
union, and, to the Company’s knowledge, there has been no effort by any labor union
during the 24 months prior to the date hereof to organize any employees of the Company
into one or more collective bargaining units. There is no pending or, to the Company’s
knowledge, threatened labor dispute, strike or work stoppage which affects or which may
affect the business of the Company or

-11-

 

	 	 	 	which may interfere with its continued operations. Neither the Company (on
a consolidated basis) nor to the Company’s knowledge any agent,
representative or employee thereof has within the last 12 months committed
any unfair labor practice as defined in the National Labor Relations Act, as
amended, and there is no pending or, to the Company’s knowledge, threatened
charge or complaint against the Company (on a consolidated basis) by or with
the National Labor Relations Board or any representative thereof. There has
been no strike, walkout or work stoppage or threat thereof involving any of
the employees of the Company during the 12 months prior to the date hereof.
The Company (on a consolidated basis) has complied in all material respects
with applicable Laws, rules and regulations relating to employment, civil
rights and equal employment opportunities, including but not limited to, the
Civil Rights Act of 1964, the Fair Labor Standards Act, and the Americans
with Disabilities Act, as amended, except for those instances of
non-compliance which would not result in a Company Material Adverse Effect;

	 	(ii)	 	with respect to all material employee benefit plans (as defined
in Section 3(3) of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”)) and all bonus, stock option, stock purchase,
restricted stock, incentive, deferred compensation, retiree medical or life
insurance, supplemental retirement, severance or other benefit plans, programs
or arrangements, and all employment, termination, severance or other contracts
or agreements to which the Company or any Subsidiary is a party, with respect
to which the Company or any Subsidiary has any obligation or which are
maintained, contributed to or sponsored by the Company or any Subsidiary for
the benefit of any current or former employee, consultant, officer or director
of the Company or any Subsidiary (collectively, the “Plans”), no event
has occurred and, to the knowledge of the Company, there exists no condition or
set of circumstances, in connection with which the Company or any Subsidiary
could reasonably be expected to be subject to any actual or contingent
liability under the terms of such Plan or any applicable Law which would
reasonably be expected to have a Company Material Adverse Effect;

	 	(cc)	(i)	 	neither the Company nor any of its Subsidiaries owns any real property;

	 	(ii)	 	neither the Company nor any Subsidiary has received written
notice of any default under any documents, leases or agreements evidencing any
leasehold interests of real property currently leased or subleased by the
Company or any Subsidiary, and, to the Company’s knowledge, no event has
occurred which, with notice or lapse of time or both, would constitute a
default by the Company or the applicable Subsidiaries thereunder which would
result in a Company Material Adverse Effect; and

	 	(dd)	(i)	 	(A) to the Company’s knowledge, the conduct of the business of the Company
and the Subsidiaries as currently conducted does not infringe upon or misappropriate
the Intellectual Property rights of any third party, and no claim has been asserted
against the Company or any Subsidiary that the conduct of the business of the Company
and the Subsidiaries as currently conducted infringes upon, or may infringe upon or
misappropriates the Intellectual Property rights of any third party; (B) with respect
to each item of Intellectual Property that is owned by the Company or a Subsidiary and
is material to its operations (“Owned Intellectual Property”), the Company or a
Subsidiary is the owner of the entire

-12-

 

	 	 	 	right, title and interest in and to such Owned Intellectual Property and is
entitled to use such Owned Intellectual Property in the continued operation
of its respective business; (C) with respect to each item of Intellectual
Property that is licensed to or otherwise held or used by the Company or a
Subsidiary and is material to its operations (“Licensed Intellectual
Property”), the Company or a Subsidiary has the right to use such
Licensed Intellectual Property in the continued operation of its respective
business in accordance with the terms of the license agreement governing
such Licensed Intellectual Property; (D) none of the Owned Intellectual
Property has been adjudged invalid or unenforceable in whole or in part and,
to the Company’s knowledge, the Owned Intellectual Property is valid and
enforceable; and (E) to the Company’s knowledge, no person is engaging in
any activity that infringes upon the Owned Intellectual Property;
	 
	 	(ii)	 	for purposes of this Agreement, “Intellectual Property”
means (A) United States and Canadian patents, patent applications and statutory
invention registrations, (B) trademarks, service marks, trade dress, logos,
trade names, corporate names, domain names and other source identifiers, and
registrations and applications for registration thereof, (C) copyrightable
works, copyrights, and registrations and applications for registration thereof,
(D) all items of software, source code, object code or other computer program
of whatever name and (F) confidential and proprietary information, including
trade secrets and know-how;

	 	(ee)	(i)	 	each of the Company and its Subsidiaries has filed all Tax Returns required
to be filed by any of them, except, where the failure to file such Tax Returns would
not, have a Company Material Adverse Effect. The Company and each of its Subsidiaries
have correctly reported all income and all other amounts or information required to be
reported to the applicable Governmental Authority with respect to any such Taxes,
except as would not result in a Company Material Adverse Effect. Copies of all
federal, state and local Tax Returns for the Company and each Subsidiary with respect
to the taxable years commencing on or after the 2007 tax year have been delivered or
will be made available to each Purchaser, upon request. To the Company’s knowledge, no
deficiencies for any Taxes have been asserted or assessed in writing against the
Company or any of its Subsidiaries as of the date of this Agreement, and no requests
for waivers of the time to assess any such Taxes are pending. There are no pending or,
to the knowledge of the Company, threatened audits, examinations, investigations or
other proceedings in respect of any Tax of the Company;

	 	(ii)	 	all material Taxes due and owing by the Company (whether or not
shown on any Tax Return) have been paid or have been properly accrued on the
Company’s Financial Statements in accordance with GAAP. The Company has
withheld all Taxes required to have been withheld in connection with amounts
paid to its employees, independent contractors, customers, shareholders and
other Persons, and has paid, or will timely pay, all amounts so withheld to the
appropriate Governmental Authority, except when failures to withhold would not
result in a Company Material Adverse Effect;
	 
	 	(iii)	 	the Company is not currently delinquent in the payment of any
Tax. There are no Tax liens on any assets of the Company, except for statutory
liens for Taxes that are not yet due and payable, liens for Taxes which are
currently payable without penalty or interest and liens for Taxes being
contested in good faith by any appropriate proceeding for which adequate
reserves have been established.

-13-

 

	 	 	 	There is no material Tax deficiency outstanding or assessed or proposed
against the Company that is not reflected as a liability on the Company’s
Financial Statements. The Company has not executed any agreements or
waivers extending any statute of limitations on or extending the period for
the assessment or collection of any Tax;
	 
	 	(iv)	 	the Company has not assumed any obligation to pay any Tax
obligations of, or with respect to any transaction relating to, any other
Person or agreed to indemnify any other Person with respect to any Tax;
	 
	 	(v)	 	for purposes of this Agreement:

	 	(A)	 	“Tax” or “Taxes” shall mean any
and all federal, state, local and foreign income, gross receipts,
license, payroll, employment, excise, severance, stamp, occupation,
premium, windfall profits, environmental, customs duties, capital
stock, franchise, profits, withholding, social security, unemployment,
disability, real property, personal property, sales, use, transfer,
registration, value added, alternative or add-on minimum, estimated, or
other taxes of any kind (together with any and all interest, penalties,
additions to tax and additional amounts imposed with respect thereto)
imposed by any governmental or Tax authority; and
	 
	 	(B)	 	“Tax Returns” means any and all
returns, declarations, claims for refund, or information returns or
statements, reports and forms relating to Taxes filed with any Tax
authority (including any schedule or attachment thereto) with respect
to the Company or the Subsidiaries, including any amendment thereof;

	 	(ff)	(i)	 	except as would not reasonably be expected to have a Company Material
Adverse Effect: (A) to the Company’s knowledge, none of the Company or any of the
Subsidiaries has violated, or is in violation of, any Environmental Law; (B) to the
Company’s knowledge, there is and has been no Release of Hazardous Substances in
violation of Environmental Laws at, on, under or any of the properties currently leased
or operated by the Company or any of the Subsidiaries or, during the period of the
Company’s or the Subsidiaries’ lease or operation thereof, formerly leased or operated
by the Company or any of the Subsidiaries; (C) the Company and the Subsidiaries have
obtained and are and have been in material compliance with all, and have not violated
any, required Environmental Permits; (D) the Company and its Subsidiaries have not
received any written claims against the Company or any of the Subsidiaries alleging
violations of or liability or obligations under any Environmental Law;

	 	(ii)	 	for purposes of this Agreement:

	 	(A)	 	“Environmental Laws” means any Laws
(including common law) of the United States federal, state, local,
non-United States, or any other Governmental Authority; relating to (A)
Releases or threatened Releases of Hazardous Substances or materials
containing Hazardous Substances; (B) the manufacture, handling,
transport, use, treatment, storage or disposal of Hazardous Substances
or materials containing Hazardous Substances; or (C) pollution or
protection of the environment or human
health and safety as affected by Hazardous Substances or materials
containing Hazardous Substances;

-14-

 

	 	(B)	 	“Environmental Permits” means any
permit, license registration, approval, notification or any other
authorization pursuant to Environmental Law;
	 
	 	(C)	 	“Hazardous Substances” means (A) those
substances, materials or wastes defined as toxic, hazardous, acutely
hazardous, pollutants, contaminants, or words of similar import, in or
regulated under the following United States federal statutes and any
analogous state statutes, and all regulations thereunder: the Hazardous
Materials Transportation Act, the Resource Conservation and Recovery
Act, the Comprehensive Environmental Response, Compensation and
Liability Act, the Clean Water Act, the Safe Drinking Water Act, the
Atomic Energy Act, the Federal Insecticide, Fungicide, and Rodenticide
Act and the Clean Air Act; (B) petroleum and petroleum products,
including crude oil and any fractions thereof; (C) natural gas,
synthetic gas, and any mixtures thereof; and (D) polychlorinated
biphenyls, asbestos, molds that could reasonably be expected to
adversely affect human health, urea formaldehyde foam insulation and
radon; and
	 
	 	(D)	 	“Release” means any spilling, leaking, pumping,
pouring, emitting, emptying, discharging, injecting, escaping,
migrating, seeping, leaching, dumping, or disposing of any substance,
material or product into or through the environment.

	 	(gg)	 	except for the representations and warranties made by the Company in this
Section 6, the Subscription Agreements, the Company makes no representations or
warranties, and the Company hereby disclaims any other representations or warranties,
with respect to the Company, the Subsidiaries, or its or their businesses, operations,
assets, liabilities, condition (financial or otherwise) or prospects or any other
information or documents made available to each Purchaser or its counsel, accountants
or advisors with respect to the Company or any of the businesses, assets, liabilities
or operations of the foregoing, except as expressly set forth in this Agreement; and
	 
	 	(hh)	 	no act or proceeding has been taken by or against the Company or any of the
Subsidiaries in connection with the dissolution, liquidation, winding up, bankruptcy or
reorganization of the Company or any of the Subsidiaries nor, to the knowledge of the
Company, is any threatened, or for the appointment of a trustee, receiver, manager or
other administrator of the Company or any of the Subsidiaries or any of their
respective properties or assets. None of the Company or any of the Subsidiaries has
sought protection under applicable bankruptcy legislation.

	6.	 	Covenants of the Company. The Company covenants and agrees with each Purchaser that:

	 	(a)	 	it will advise each Purchaser, promptly after receiving notice or any obtaining
knowledge thereof, of the imposition of any cease trading or similar order affecting
the Common Shares or order modifying or making unavailable any exemption pursuant to
which the Common Shares are being offered or sold, or the institution, threatening or
contemplation
of any proceedings for any such purpose or any request made by any Securities
Regulator relating to the Offering;

-15-

 

	 	(b)	 	unless it would be unlawful to do so or unless the Company, acting reasonably,
determines that it would not be in the best interests of the Company to do so or would
result in non-compliance with any applicable Securities Laws or the requirements of the
Stock Exchanges, the Company will accept each duly completed and executed Subscription
Agreement and any such acceptance will be made on the Closing Date;
	 
	 	(c)	 	the Company will have taken, on or prior to the Closing Date, all necessary
steps to ensure the Common Shares have been duly authorized for issuance;
	 
	 	(d)	 	the Company will duly, punctually and faithfully perform all of the obligations
to be performed by it under the Subscription Agreements;
	 
	 	(e)	 	the Company will take all such steps as may be necessary to obtain conditional
listing approval of the Stock Exchanges;
	 
	 	(f)	 	the Company will comply with all filings and other continuous disclosure
requirements under all applicable Securities Laws; and
	 
	 	(g)	 	the Company will use commercially reasonable efforts to ensure that there is
available “adequate current public information” with respect to the Company within the
meaning of Rule 144(c)(1) under the U.S. Securities Act after the Closing Date and at
all times thereafter when the Registration Statement is not effective and up to date.
	 
	 	(h)	 	The Company agrees that it will not, and shall cause each of its Subsidiaries
to not, without the prior written consent of (“
“), use in advertising, publicity, or otherwise the name of      , or any
Purchaser, or any partner or employee of            or any Purchaser, nor any trade
name, trademark, trade device, service mark, symbol or any abbreviation, contraction or
simulation thereof owned by      , any Purchaser or any of their respective
affiliates. The Company further agrees that it shall obtain the written consent of
prior to the Company’s or any of its Subsidiaries’ issuance of any public
statement detailing the purchase of shares by Purchasers pursuant to this Agreement.
The foregoing covenant shall not be deemed to be breached if the Company is required by
Securities Laws to use the            name or any Purchaser’s name in any required
filings with a Securities Regulator.

7.            Due Diligence. Until the Closing Date the Company shall at all times allow the Purchasers and
their representatives to conduct due diligence investigations and examinations.

8.            Conditions of Closing. The obligations of the Purchasers to deliver at the Closing Time
executed Subscription Agreements shall be conditional upon each Purchaser being satisfied with the
results of its due diligence investigations relating to the Company and upon the fulfilment or
waiver by each Purchaser at or before the Closing Time of the following conditions, which
conditions the Company covenants to use its best efforts to fulfil or cause to be fulfilled prior
to the Closing Time:

	 	(a)	 	the execution and delivery of this Agreement and the Subscription Agreements,
the due authorization of the issuance of the Common Shares shall have been duly
authorized by all necessary corporate action;

-16-

 

	 	(b)	 	any necessary consents or approvals of the Securities Regulators with respect
to the issue and sale of the Common Shares shall have been obtained, and the
conditional approval of the Stock Exchanges to list the Common Shares shall have been
obtained;
	 
	 	(c)	 	the Purchasers shall have received certificates addressed to the Purchasers and
to the Subscribers, dated as of the date of Closing, signed by the President and the
Chief Executive Officer of the Company, or such other officer or officers of the
Company as the Purchasers may accept, certifying on behalf of the Company to the effect
that, except as has been generally disclosed at the date thereof:

	 	(i)	 	no order, ruling or determination suspending or cease trading
the Common Shares has been issued, and no proceedings for that purpose have
been instituted or, to the knowledge of such officer, contemplated or
threatened by any Securities Commission;
	 
	 	(ii)	 	other than as disclosed in the Disclosure Documents, since
November 9, 2010 there has not been any change as it relates to the Company and
its Subsidiaries on a consolidated basis that has or could reasonably be
expended to result in a Company Material Adverse Effect;
	 
	 	(iii)	 	other than as disclosed in the Disclosure Documents, since
November 9, 2010 no material fact has arisen or has been discovered which would
have been required to have been stated in the Disclosure Documents had the fact
arisen or been discovered on, or prior to the date of such Disclosure
Documents;
	 
	 	(iv)	 	the representations and warranties of the Company contained in
this Agreement are true and correct in all material respects as of the Closing
Time with the same force and effect as if made at and as of the Closing Time;
	 
	 	(v)	 	the Company has complied in all material respects with all the
terms and conditions of this Agreement on its part to be complied with at or
before the Closing Time; and
	 
	 	(vi)	 	as to such other matters of a factual nature as are appropriate
and usual in the circumstances and as the Purchasers or the Purchasers’ Counsel
may reasonably request; and

	 	(d)	 	the Company shall have delivered to each Purchaser’s custodian of securities
identified in Section 9 below the certificates representing the Common Shares.

9.             Closing Procedures. Provided duly executed Subscription Agreements have been delivered to the
Company’s counsel, the Company will cause to be issued and to be delivered to each Purchaser at the
location as directed by each Purchaser without charge prior to the Closing Time certificates
representing the Common Shares in such number and denomination and bearing the registration
particulars as each Purchaser may, in writing, direct to the Company prior to the Closing Time or,
as otherwise evidenced in the Subscription Agreements, and once each Purchaser has confirmed
receipt of each certificate, each Purchaser shall deposit the amount of readily available funds
equal to such Purchaser’s Subscription Amount by wire transfer in immediately available funds to
the Company pursuant to the Company’s written wire instructions.

-17-

 

10.           Expenses of Offering. Whether or not the transactions herein contemplated shall be completed,
all costs and expenses of and incidental to the sale of the Common Shares to the Subscribers
and all other matters in connection with the transactions herein set out shall be borne by the
Company, whether before or after Closing, including without limitation, all costs and expenses in
connection with the preparation and issue of the certificates for the securities to be offered
hereunder, the fees and disbursements of the Company’s counsel, all local counsel and the expenses
of the Purchasers in connection with the Offering including without limitation the reasonable fees
and expenses of the Purchasers’ counsel, and the Purchasers out-of-pocket expenses, collectively to
a maximum of $25,000. Any expenses in excess of this maximum shall be subject to pre-approval by
the Company, action reasonably.

11.        Termination.

11.1      If at any time prior to Closing:

	 	(a)	 	there shall have occurred any adverse changes in relation to the Company that,
in the opinion of each Purchaser, acting reasonably and in good faith, has or could
reasonably be expected to result in a Company Material Adverse Effect;
	 
	 	(b)	 	there shall have occurred any change in the Securities Laws, or any inquiry,
investigation or other proceeding is made or any order is issued under or pursuant to
any statute of the US or Canada or any Stock Exchange in relation to the Company or any
of the Securities (except for any inquiry, investigation or other proceeding or order
based upon activities of each Purchaser and not upon activities of the Company or its
subsidiaries), which, in the opinion of each Purchaser, acting reasonably and in good
faith, prevents or restricts trading in or the distribution of the Securities or
adversely affects or might reasonably be expected to adversely affect the investment
quality or marketability of the Common Shares; or
	 
	 	(c)	 	a cease trading order is made under any of the Securities Laws by any other
competent authority in respect of the Securities and such cease trading order is not
rescinded within 48 hours,

each Purchaser shall be entitled, at their option, to terminate and cancel their obligations to the
Company under this Agreement by written notice to that effect given to the Company at the address
shown in Section 13.2 prior to the Closing Time. In the event of any such termination, the
Company’s obligations under this Agreement to each Purchaser shall be at an end except for any
liability of the Company provided for in Section 10 hereof.

11.2        The rights of termination contained in this Section 11 are in addition to any other rights or
remedies each Purchaser may have in respect of any default, misrepresentation, act or failure to
act of the Company in respect of any matters contemplated by this Agreement.

12.        Purchaser Obligations. Each Purchaser represents, warrants and covenants to the Company that
each Purchaser has complied and will comply with all Securities Laws and all other applicable laws
and regulations or similar enactments applicable in respect of the Offering in each of their
jurisdictions of organization.

13.        Miscellaneous.

13.1      All representations and warranties contained herein and all of the covenants and agreements of
the Company herein, to the extent that they are required to be performed on or before Closing,
shall be construed as conditions and any material breach or failure to comply with any thereof
shall entitle each Purchaser, in addition to and not in lieu of any other remedies each Purchaser
has in

-18-

 

respect thereof, to terminate any obligation to purchase the Common Shares by written notice to
that effect given to the Company prior to the Closing Time. It is understood that the Purchasers
may waive in whole or in part or extend the time for compliance with any of such terms and
conditions without prejudice to its rights in respect of any other of such terms and conditions or
any other subsequent breach or non-compliance, provided that to be binding on the Purchasers any
such waiver or extension must be in writing.

13.2        Any notice or other communication hereunder shall be in writing and shall unless herein
otherwise provided be given by delivery to a responsible officer of the addressee or by telex or
telecopier, if to the Company, addressed to: Swisher Hygiene Inc., 4725 Piedmont Row Drive, Suite
400, Charlotte, North Carolina, 28210 (Attention: President and Chief Executive Officer)
(telecopier: (704) 602-7970); and if to each Purchaser addressed to: ___and
shall be deemed to have been given when actually delivered or when such notice should have reached
the addressee in the ordinary course.

13.3        Time shall be of the essence of the foregoing offer and of the agreement resulting from the
acceptance thereof.

13.4        The representations, warranties, covenants and other agreements herein contained shall survive
the purchase by the Subscribers of the Common Shares and shall continue in full force and effect
unaffected by any subsequent disposition by the Subscribers of the Common Shares for a period of
two years hereafter (other than obligations of the Company set forth in Sections 8 and 11 hereof
which will continue indefinitely).

13.5        This Agreement may be executed in any number of counterparts, each of which when delivered,
either in original or facsimile form, shall be deemed to be an original and all of which together
shall constitute one and the same document.

13.6        This Agreement shall be governed by the laws of the State of Delaware, and the federal laws of
the United States applicable therein.

13.7        The provisions herein contained and in the Subscription Agreements constitute the entire
agreement between the parties and supersede all previous communications, representations,
understandings and agreements between the parties with respect to the subject matter hereof whether
verbal or written.

13.8        A copy of the Agreement and Declaration of Trust of each Purchaser or any affiliate thereof is
on file with the Secretary of State of the Commonwealth of Massachusetts and notice is hereby given
that this Agreement is executed on behalf of the trustees of such Purchaser or any affiliate
thereof as trustees and not individually and that the obligations of this Agreement are not binding
on any of the trustees, officers or stockholders of such Purchaser or any affiliate thereof
individually but are binding only upon such Purchaser or any affiliate thereof and its assets and
property.

-19-

 

     If the foregoing is in accordance with your understanding, will you please confirm your
acceptance by signing the enclosed copies in the place indicated and by returning the same to us.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective
authorized representatives, effective as of the date first shown above.

	 	 	 	 	 
	SWISHER HYGIENE INC.,

a Delaware corporation

 	 
	By:  	 	 
	 	Thomas E. Aucamp 	 
	 	 	Executive Vice President 	 
	 

	 	 	 	 	 
	 	 	 
	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

Schedule A

SUBSCRIPTION AGREEMENT

 

 

SUBSCRIPTION INSTRUCTIONS

Please make sure that your subscription includes:

	 	1.	 	one (1) signed copy of the Subscription Agreement with the information
on pages 2, 3 and 4 completed;
	 
	 	2.	 	an amount equal to the aggregate Subscription Price, payable in U.S.
funds shall be delivered by wire transfer to an account designated by the
Company upon receipt of certificates representing the Securities to the
Custodian.

Please deliver your subscription to:

Akerman Senterfitt

350 East Las Olas Boulevard

Suite 1600

Fort Lauderdale, Fl 33301

Attention: Edward Ristaino

Fax (954) 463-2224

 

 

 

 

 

SUBSCRIPTION AGREEMENT FOR COMMON SHARES

The securities subscribed for herein have not been and will not be registered under the United
States Securities Act of 1933, as amended, and, subject to certain exceptions, may not be offered
or sold in the United States or to a U.S. Person. The sale contemplated hereby is being made in
reliance on a private placement exemption to “accredited investors” that satisfy the criteria set
forth in Rule 501(a) of Regulation D under the United States Securities Act of 1933, as amended.

			
	TO:	 	SWISHER HYGIENE INC. (the “Company”)

The undersigned (hereinafter referred to as the “Subscriber”) hereby irrevocably subscribes for and
agrees to purchase from the Company that number of shares of common stock of the Company set forth
below (the “Common Shares”) for the aggregate consideration set forth below, representing a
subscription price of $  per Common Share, upon and subject to the terms and conditions set
forth in “Terms and Conditions of the Subscription for Common Shares” attached hereto as Schedule
“A” and as set forth in the other applicable schedules hereto (the “Offering”).

SUBSCRIPTION AND SUBSCRIBER INFORMATION

Please print all information (other than signatures), as applicable, in the space provided below

 

 

(Name of Subscriber — please print)

			
	By:	 	
 

(Authorized Signature)

 

(Please print name of individual whose signature appears above
if different than the name of the subscriber printed above and
title, if applicable.)

 

(Subscriber’s Address)

 

(Telephone Number)

 

(Fax Number)                               (E-mail Address)

Number of Common Shares

 

 

 

Aggregate Consideration:

			
	$	 	
 

(number of Common Shares x $5.00

(the “Subscription Amount”)

 

 

 

 

 

 

 

 

-1-

 

Register the Common Shares as set forth below:

 

(Name)

 

(Account Reference, if applicable)

 

(Address)

 

 

 

Deliver the Common Shares as set forth below:

 

 

 

 

 

Present Ownership of Securities

The Subscriber either [check appropriate box]:

			
	o	 	owns directly or indirectly, or exercises control or direction over, ____________ Common
Shares and convertible securities entitling the holder thereof to acquire an additional
____________ Common Shares; or

			
	o	 	does not own directly or indirectly, or exercise control or direction over, Common Shares of
the Company or securities convertible into Common Shares.

Insider Status

The Subscriber [check the box]:

			
	o	 	is not an “Insider” of the Company.

“Insider” means:

	 	(a)	 	a director or officer of the Company;
	 
	 	(b)	 	a director or officer of a person or company that is itself an insider or
subsidiary of the Company;
	 
	 	(c)	 	a person or company who beneficially owns, directly or indirectly, voting
securities of the Company or who exercises control or direction over, directly or
indirectly, voting securities of the Company or a combination of beneficial ownership
of, and control or direction over, directly or indirectly, of securities of the Company
carrying more than 10% of the voting rights attached to all voting securities of the
Company for the time being outstanding; or
	 
	 	(d)	 	the Company itself, if it has purchased, redeemed or otherwise acquired any
securities of its own issue, for so long as it continues to hold those securities.

* * * * * * *

The following Schedules are attached to and incorporated by reference in this Subscription
Agreement and are deemed to be a part hereof:

	 	 	 	 	 
	Schedule “A”

	 	-
	 	Terms and Conditions of Subscriptions for Common Shares
	Schedule “B”

	 	-
	 	Term Sheet
	Schedule “C”

	 	-
	 	Certificate of Subscriber
	Schedule “D”

	 	-
	 	Terms and Conditions of Registration Rights
	Schedule “E”

	 	-
	 	Current 34 Act Filings

-2-

 

     ACCEPTANCE: The Company hereby accepts the above subscription this ___day of March, 2011.

	 	 	 	 	 
	 	SWISHER HYGIENE INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Thomas E. Aucamp 	 
	 	 	Title:  	Executive Vice President 	 
	 

-3-

 

SCHEDULE “A”

TERMS AND CONDITIONS OF SUBSCRIPTION FOR COMMON SHARES

ARTICLE 1 — INTERPRETATION

			
	1.1	 	Definitions

     Whenever used in this Subscription Agreement, unless there is something in the subject matter
or context inconsistent therewith, the following words and phrases shall have the respective
meanings ascribed to them as follows:

“Accredited Investor” means those “accredited investors” specified in Rule 501(a) of Regulation D.

“Business Day” means a day other than a Saturday, Sunday or any other day on which banks located in
Charlotte, North Carolina are not open for business.

“Closing” shall have the meaning ascribed to such term in Section 3.1.

“Closing Date” shall have the meaning ascribed to such term in Section 3.1.

“Closing Time” shall have the meaning ascribed to such term in Section 3.1.

“Common Share” means a share of common stock of the Company, $0.001 par value per share and
evidencing an equal undivided beneficial interest in the Company.

“Common Share Price” means the subscription price per Common Share under this Offering.

“Company” means Swisher Hygiene Inc. and includes any successor corporation to or of the
Company.

“Custodian” means ___.

“Insider” means (a) a director or officer of the Company, (b) a director or officer of a person or
company that is an insider or subsidiary of the Company, (c) a person or company who beneficially
owns, directly or indirectly, voting securities of the Company or who exercises control or
direction over, directly or indirectly, voting securities of the Company or a combination of
beneficial ownership of, and control or direction over, directly or indirectly, of securities of
the Company carrying more than 10% of the voting rights attached to all voting securities of the
Company for the time being outstanding, or (d) the Company itself, if it has purchased, redeemed or
otherwise acquired any securities of its own issue, for so long as it continues to hold those
securities.

“NASDAQ” means the NASDAQ Global Market.

“Offering” shall have the meaning ascribed to such term on the page 2 of this Subscription
Agreement, for an aggregate offering of up to ___Common Shares for an aggregate Subscription
Amount of $___.

“person” means and includes individuals, corporations, limited partnerships, general partnerships,
joint stock companies, limited liability companies, joint ventures, associations, companies,
trusts, banks, trust companies, pension funds, business trusts or other organizations, whether or
not legal entities and governments, governmental agencies and political subdivisions thereof.

“Regulation D” means Regulation D adopted by the SEC under the U.S. Securities Act.

“Regulation S” means Regulation S adopted by the SEC under the U.S. Securities Act.

“Right” shall have the meaning ascribed to such term in Section 2.2.

A-1

 

“Securities” means the Common Shares.

“Securities Laws” means, as applicable, the securities laws, regulations, rules, rulings and
orders, and the notices, policies and written interpretations issued by the Securities Regulators
in each of the jurisdictions of the Subscribers, and the rules of TSX and NASDAQ.

“Securities Purchase Agreement” means the Securities Purchase Agreement to be dated as of the
Closing Date entered into between Subscriber and the Company in respect of the Offering.

“Securities Regulators” means the Securities and Exchange Commission or other securities regulatory
authorities of the U.S.

“Subscriber” means the subscriber for the Common Shares as set out on page 1 of this Subscription
Agreement.

“Subscription Agreement” means this subscription agreement (including any schedules hereto) and any
instrument amending this Subscription Agreement; “hereof”, “hereto”, “hereunder”, “herein” and
similar expressions mean and refer to this Subscription Agreement and not to a particular Article
or Section; and the expression “Article” or “Section” followed by a number means and refers to the
specified Article or Section of this Subscription Agreement.

“Subscription Amount” means an amount equal to the Common Share Price multiplied by the number of
Common Shares subscribed for by the Subscriber and paid for pursuant to this Subscription
Agreement.

“TSX” means the Toronto Stock Exchange.

“United States” means the United States of America, its territories and possessions, any State of
the United States of America and the District of Columbia.

“U.S. Person” shall have the meaning ascribed to such term in Rule 902(k) of Regulation S
under the U.S. Securities Act.

“U.S. Securities Act” means the United States Securities Act of 1933, as amended.

			
	1.2	 	Gender and Number

     Words importing the singular number only shall include the plural and vice versa, words
importing the masculine gender shall include the feminine gender and words importing persons shall
include firms and corporations and vice versa.

			
	1.3	 	Currency

     Unless otherwise specified, all dollar amounts in this Subscription Agreement, including the
symbol “$”, are expressed in U.S. dollars.

			
	1.4	 	Subdivisions, Headings and Table of Contents

     The division of this Subscription Agreement into Articles, Sections, Schedules and other
subdivisions and the inclusion of headings are for convenience of reference only and shall not
affect the construction or interpretation of this Subscription Agreement. The headings in this
Subscription Agreement are not intended to be full or precise descriptions of the text to which
they refer. Unless something in the subject matter or context is inconsistent therewith, references
herein to an Article, Section, Subsection, paragraph, clause or Schedule are to the applicable
article, section, subsection, paragraph, clause or schedule of this Subscription Agreement.

A-2

 

ARTICLE 2 — SUBSCRIPTION AND DESCRIPTION OF COMMON SHARES

			
	2.1	 	Subscription for the Common Shares

     The Subscriber hereby confirms its irrevocable subscription for and offer to purchase Common
Shares from the Company, on and subject to the terms and conditions set out in this Subscription
Agreement, for the Subscription Amount which is payable as described in Article 3 hereto.

			
	2.2	 	Acceptance and Rejection of Subscription by the Company

     The Subscriber acknowledges and agrees that the Company reserves the right, in its absolute
discretion, to reject this subscription for Common Shares, in whole or in part, at any time prior
to the Closing Time.

ARTICLE 3 — CLOSING

			
	3.1	 	Closing

     The sale of the Common Shares and payment of the Subscription Amount will be completed (the
“Closing”) at the offices of the Company’s counsel, Akerman Senterfitt at 8:30 a.m. (Charlotte
time) (the “Closing Time”) on or about March 23, 2011 or such other date or time as the Company may
decide (the “Closing Date”). The certificates representing the Common Shares will be delivered to
and receipt acknowledged by the Subscriber’s Custodian prior to the Closing Time.

     If, at the Closing Time, the terms and conditions contained in this Subscription Agreement
have been complied with to the satisfaction of the Company or waived by it, the Subscriber shall
deliver to the Company the completed Subscription Agreement and the Custodian shall deliver to the
Company, the payment of the aggregate Subscription Price for the Common Shares subscribed for by
Subscriber, in each case against delivery by the Company of a certificate(s) representing the
Common Shares to the Custodian and such other documentation as may be required pursuant to the
Subscription Agreement and the Securities Purchase Agreement.

     If, prior to the Closing Time, the terms and conditions contained in this Subscription
Agreement have not been complied with to the satisfaction of the Company or waived by it, the
Company and the Subscriber will have no further obligations under this Subscription Agreement.

			
	3.2	 	Conditions of Closing

     The Subscriber understands that the Company will use the proceeds of the Offering for working
capital and to further the organic and acquisition growth strategy of the Company.

     The Subscriber acknowledges and agrees that the obligations of the Company hereunder are
conditional on the accuracy of the representations and warranties of the Subscriber contained in
this Subscription Agreement as of the date of this Subscription Agreement, and as of the Closing
Time as if made at and as of the Closing Time, and the fulfillment of the following additional
conditions at the Closing Time:

	 	(a)	 	payment by the Subscriber of the Subscription Amount, payable in U.S. funds to
the Company by wire transfer pursuant to the Company’s written wire instructions
promptly following acceptance by the Company of this Subscription Agreement and receipt
by the Custodian of certificates representing the Securities.

A-3

 

	 	(b)	 	the Subscriber having properly completed, signed and delivered this
Subscription Agreement to:
	 
	 	 	 	Akerman Senterfitt

350 East Las Olas Boulevard

Suite 1600

Fort Lauderdale, Fl 33301

	 
	 	 	 	Attention: Edward Ristaino

	 
	 	 	 	Fax (954) 463-2224

	 
	 	(c)	 	the Subscriber having properly completed, signed and delivered a Certificate of
Subscriber in the form attached to the Subscription Agreement as Schedule “C”:

     The Company acknowledges and agrees that the obligations of the Subscriber hereunder are
conditional on the accuracy of the representations and warranties of the Company contained in this
Subscription Agreement as of the date of this Subscription Agreement, and as of the Closing Time as
if made at and as of the Closing Time, and the fulfilment of the following conditions, amogst
others, as soon as possible and in any event not later than the Closing Time:

	 	(a)	 	all covenants, agreements and conditions contained in this Subscription
Agreement to be performed by the Company on or prior to the Closing shall have been
performed or complied with in all material respects, including without limitation,
obtaining conditional approval from the TSX and NASDAQ for the listing of the Common
Shares, being effected on a private placement basis, and to list the Common Shares; and
	 
	 	(b)	 	the Company shall have delivered to Akerman Senterfitt, the following items:

	 	(i)	 	a copy of the certificate(s) representing the Common Shares
purchased by the Subscriber registered in the name of the Subscriber or its
nominee;
	 
	 	(ii)	 	a copy of this Subscription Agreement duly executed by the Company; and
	 
	 	(iii)	 	such other documents relating to the transactions contemplated
by this Subscription Agreement and the Securities Purchase Agreement.

ARTICLE 4 — REPRESENTATIONS, WARRANTIES AND COVENANTS

OF THE COMPANY

			
	4.1	 	Representations, Warranties and Covenants of the Company

     By execution of this Subscription Agreement, the Company hereby agrees with the Subscriber
that the Subscriber shall be entitled to rely on the representations and warranties made by the
Company set forth in the Securities Purchase Agreement.

     The Company, hereby represents and warrants to, and covenants with, the Subscriber as follows
and acknowledges that the Subscriber is relying on such representations, warranties and covenants
in connection with the transactions contemplated herein.

	 	(a)	 	The Company acknowledges and agrees to the terms and conditions set out in
Schedule “D”.
	 
	 	(b)	 	No form of general solicitation or general advertising (including
advertisements, articles, notices or other communications published in any newspaper,
magazine or similar media or broadcast over radio, television or electronic display
(including the internet) or any seminar or meeting whose attendees had been invited by
general solicitation or general advertising) was used by the
Company or, to the best of its knowledge, any other person acting on behalf of the
Company in respect of or in connection with the offer and sale of the Common Shares
in the United States or elsewhere or to citizens or residents of the United States
or elsewhere.

A-4

 

	 	(c)	 	Neither the Company nor any person authorized to act on its behalf has sold or
offered for sale any Common Shares, or solicited any offers to buy any Common Shares
thereby so as to cause the issuance or sale of any of the Common Shares to be in
violation of Section 5 of the U.S. Securities Act or other securities laws.
	 
	 	(d)	 	The Company is not an open-end investment company, closed-end investment
company, unit investment or face-amount certificate company that is or is required to
be registered under Section 8 of the United States Investment Company Act of 1940, as
amended.
	 
	 	(e)	 	The Company has not, for a period of six months prior to the date hereof sold,
offered for sale or solicited any offer to buy any of its securities in a manner that
would be integrated with the offer and sale of the Common Shares and would cause the
exemption from registration set forth in Rule 506 of Regulation D under the U.S.
Securities Act to become unavailable with respect to the offer and sale of the Common
Shares.
	 
	 	(f)	 	The Company will use commercially reasonable efforts to ensure that there is
available “adequate current public information” with respect to the Company within the
meaning of Rule 144(c) under the U.S. Securities Act after the Closing Date and at all
times thereafter when the registration statement referred to in Section 4.1(a) is not
effective and up to date.
	 
	 	(g)	 	At any time that the Company is neither subject to Section 13 or 15(d) of the
Securities Exchange Act of 1934, as amended, the Company shall at the request of the
Subscriber or any prospective purchaser designated by the Subscriber, promptly provide
to such person with reasonable promptness, the information specified in Rule
144A(d)(4)(i) under the U.S. Securities Act.
	 
	 	(h)	 	The Company will have, in all material respects, performed and complied with
all covenants and agreements contained in this Subscription Agreement to be performed
or complied with, or caused to be performed or complied with, by the Company at or
prior to the Closing.
	 
	 	(i)	 	All necessary corporate action will have been taken by the Company to authorize
the execution and delivery of this Subscription Agreement, and to consummate the
transactions contemplated by this Subscription Agreement.
	 
	 	(j)	 	The Company agrees that it will not, and shall cause each of its Subsidiaries
to not, without the prior written consent of (“ “), use in
advertising, publicity, or otherwise the name of      ,
or any Purchaser, or any partner or employee of            or any Purchaser, nor any
trade name, trademark, trade device, service mark, symbol or any abbreviation,
contraction or simulation thereof owned by      , any Purchaser or any of their
respective affiliates. The Company further agrees that it shall obtain the written
consent of            prior to the Company’s or any of its Subsidiaries’ issuance of
any public statement detailing the purchase of shares by Purchasers pursuant to this
Agreement. The foregoing covenant shall not be deemed to be breached if the Company is
required by Securities Laws to use the            name or any Purchaser’s name in
any required filings with a Securities Regulator.

ARTICLE 5 — REPRESENTATIONS, WARRANTIES, COVENANTS AND

ACKNOWLEDGMENTS OF THE SUBSCRIBER

			
	5.1	 	Representations, Warranties and Covenants of the Subscriber

     By execution of this Subscription Agreement, the Subscriber, on its own behalf and, if
applicable, on behalf of others for whom it is acting hereunder, hereby represents and warrants to,
and covenants with, the Company as
follows and acknowledges that the Company are relying on such representations, warranties and
covenants in connection with the transactions contemplated herein:

A-5

 

	 	(a)	 	The matters set forth by the Subscriber on pages 2 and 3 of this Subscription
Agreement are true and correct as of the date of execution of this Subscription
Agreement and will be true and correct as of the Closing Time.
	 
	 	(b)	 	The Subscriber is a resident in the jurisdiction set out on page 2 of this
Subscription Agreement. Such address was not created and is not used solely for the
purpose of acquiring the Common Shares and the Subscriber and any beneficial purchaser
was solicited to purchase and executed this Subscription Agreement in such
jurisdiction.
	 
	 	(c)	 	The Subscriber has properly completed, executed and delivered to the Company
within the applicable time periods the certificate(s) set forth in Schedule “C” to this
Subscription Agreement and the information contained therein is true and correct.
	 
	 	(d)	 	The representations, warranties and covenants contained in Schedule “A” and in
the other applicable Schedules to this Subscription Agreement are true and correct as
of the date of execution of this Subscription Agreement and will be true and correct as
of the Closing Time.
	 
	 	(e)	 	The execution and delivery of this Subscription Agreement, the performance and
compliance with the terms hereof, the subscription for Common Shares and the completion
of the transactions described herein by the Subscriber will not result in any material
breach of, or be in conflict with or constitute a material default under, or create a
state of facts which, after notice or lapse of time, or both, would constitute a
material default under any term or provision of the constating documents, by-laws or
resolutions of the Subscriber, the Securities Laws or any other laws applicable to the
Subscriber, any agreement to which the Subscriber is a party, or any judgment, decree,
order, statute, rule or regulation applicable to the Subscriber.
	 
	 	(f)	 	The undersigned represents and warrants that the undersigned is not (i) a
person or entity named on the List of Specially Designated Nationals and Blocked
Persons maintained by the U.S. Office of Foreign Assets Control (OFAC) or in any
Executive Order issued by the President of the United States and administered by OFAC,
(ii) a Designated National as defined in the Cuban Assets Control Regulations, 31
C.F.R. Part 515, or (iii) a non-U.S. shell bank or providing banking services
indirectly to a non-U.S. shell bank (collectively, a “Prohibited Investor”).
The undersigned agrees to provide the Company or law enforcement agencies, promptly
upon request, such records as required by applicable law. If the undersigned is a
financial institution that is subject to the Bank Secrecy Act, as amended (31 U.S.C.
Section 5311 et seq.) and its implementing regulations (collectively, the “Bank
Secrecy Act”), the undersigned represents that the undersigned maintains policies
and procedures reasonably designed to comply with applicable obligations under the Bank
Secrecy Act. The undersigned further represents and warrants that it maintains
policies and procedures reasonably designated to ensure that the funds held by the
undersigned and used to purchase the Shares were legally derived. The undersigned
acknowledges that if, following the investment in the Shares by the undersigned, the
Company reasonably believes that the undersigned is a Prohibited Investor or is
otherwise engaged in illegal activity or unreasonably refuses to provide promptly
information that the Company reasonably requests, the Company has the right or may be
obligated to prohibit additional investments, segregate the assets constituting, and/or
withholding or suspend distributions to the undersigned in respect of, the investment
in accordance with applicable regulations or immediately require the undersigned to
transfer the Shares. The undersigned further acknowledges that the undersigned will
not have any claim against the Company or any of its affiliates or agents for any form
of damages as a result of any of the foregoing actions.
	 
	 	(g)	 	The Subscriber is subscribing for the Common Shares for his, her or its own
account, as principal (within the meaning of applicable Securities Laws) and not with a
view to the resale or distribution of all or any of the Securities or if it is not
subscribing as principal, it acknowledges
that the Company may be required by law to disclose (and if required by law the
Subscriber agrees to disclose) to certain regulatory authorities the identity of
each beneficial purchaser of the Common Shares for whom it is acting.

A-6

 

	 	(h)	 	In the case of a subscription for the Common Shares by the Subscriber acting as
trustee or agent (including, for greater certainty, a portfolio manager or comparable
adviser) for a principal, the Subscriber is duly authorized to execute and deliver this
Subscription Agreement and all other necessary documentation in connection with such
subscription on behalf of each such beneficial purchaser, each of whom is subscribing
as principal for its own account, not for the benefit of any other person and not with
a view to the resale or distribution of all or any of the Securities, and this
Subscription Agreement has been duly authorized, executed and delivered by or on behalf
of and constitutes a legal, valid, enforceable and binding agreement of, such
principal, and the Subscriber acknowledges that the Company may be required by law to
disclose (and if required by law the Subscriber agrees to disclose) the identity of
each beneficial purchaser for whom the Subscriber is acting.
	 
	 	(i)	 	The Subscriber is not an Insider or “affiliate” of the Company (as such term is
defined under Securities Laws).
	 
	 	(j)	 	In the case of a subscription for the Common Shares by the Subscriber acting as
principal, this Subscription Agreement has been duly authorized, executed and delivered
by, and constitutes a legal, valid and binding agreement of, the Subscriber. This
Subscription Agreement is enforceable in accordance with its terms against the
Subscriber and any beneficial purchasers on whose behalf the Subscriber is acting.
	 
	 	(k)	 	If the Subscriber is:

	 	(i)	 	a corporation, the Subscriber is duly incorporated and is
validly subsisting under the laws of its jurisdiction of incorporation and has
all requisite legal and corporate power and authority to execute and deliver
this Subscription Agreement, to subscribe for the Common Shares as contemplated
herein and to carry out and perform its covenants and obligations hereunder;
	 
	 	(ii)	 	a partnership, syndicate or other form of unincorporated
organization, the Subscriber has the necessary legal capacity and authority to
execute and deliver this Subscription Agreement and to observe and perform its
covenants and obligations hereunder and has obtained all necessary approvals in
respect thereof; or
	 
	 	(iii)	 	an individual, the Subscriber is of the full age of majority
and is legally competent to execute and deliver this Subscription Agreement and
to observe and perform his or her covenants and obligations hereunder.

	 	(l)	 	To the best of the Subscriber’s knowledge, there is no person acting or
purporting to act in connection with the transactions contemplated herein who is
entitled to any brokerage or finder’s fee.
	 
	 	(m)	 	If required by applicable Securities Laws or the Company, the Subscriber will
make reasonable efforts to execute, deliver and file or assist the Company in filing
such reports, undertakings and other documents with respect to the issue of the Common
Shares as may be required by any securities commission, stock exchange or other
regulatory authority.
	 
	 	(n)	 	The Subscriber, and each beneficial purchaser for whom it is acting hereunder,
have been advised to consult their own legal advisors with respect to (i) the
suitability of the Common Shares as an investment for the Subscriber and has not relied
upon any statements made by or purporting to have been made on behalf of the Company in
deciding to subscribe for Common Shares hereunder

A-7

 

	 	 	 	and (ii) trading in any of the Securities with respect to the resale restrictions
imposed by the Securities Laws of the jurisdiction in which the Subscriber resides,
other applicable Securities Laws, and the policies of the TSX and NASDAQ. Subject
to the registration rights described in Schedule “D”, the Subscriber acknowledges
that no representation has been made respecting the applicable hold periods imposed
by the Securities Laws or other resale restrictions applicable to such Securities
which restrict the ability of the Subscriber (or others for whom it is contracting
hereunder) to resell such Securities, that the Subscriber (or others for whom it is
contracting hereunder) is solely responsible to find out what these restrictions are
and the Subscriber is solely responsible (and the Company is not in any way
responsible) for compliance with applicable resale restrictions and the Subscriber
is aware that it (or beneficial purchasers for whom it is contracting hereunder) may
not be able to resell such Securities except in accordance with limited exemptions
under the Securities Laws.
	 
	 	(o)	 	The Subscriber has not received nor been provided with, has not requested and
does not have any need to receive a prospectus or offering memorandum, within the
meaning of the Securities Laws, or any sales or advertising literature in connection
with the Offering, and the Subscriber’s decision to subscribe for the Common Shares was
based upon the Company’s publicly available documents included in the Edgar database
administered by the SEC and the SEDAR database administered under the direction of the
Canadian Securities Administration.
	 
	 	(p)	 	Other than information provided to Subscriber in meetings or calls organized
with representatives of the Company (summaries of which are to be filed by the Company
on or before Closing, the Subscriber (and, if applicable, others for whom it is
contracting hereunder), in entering into this Agreement, has relied solely upon
publicly available information relating to the Company (including that information in
the documents listed in Schedule “E”), this Subscription Agreement and not upon any
verbal or written representation as to any fact or otherwise made by or on behalf of
the Company, or any employee, agent or affiliate thereof or any other person associated
therewith.
	 
	 	(q)	 	No person has made any written or oral representations:

	 	(i)	 	that any person will resell or repurchase any of the
Securities;
	 
	 	(ii)	 	other than pursuant to the terms of the Securities Purchase
Agreement, that any person will refund the Subscription Amount; or
	 
	 	(iii)	 	as to the future price or value of any of the Securities.

	 	(r)	 	The subscription for the Common Shares has not been made through or as a result
of, and the offer and sale of the Common Shares is not being accompanied by any
advertisement, including without limitation in printed public media, radio, television
or telecommunications, including electronic display, or as part of a general
solicitation.
	 
	 	(s)	 	The Subscriber confirms that the Subscriber:

	 	(i)	 	has such knowledge in financial and business affairs as to be
capable of evaluating the merits and risks of its investment in the Common
Shares;
	 
	 	(ii)	 	is capable of assessing the proposed investment in the Common
Shares as a result of the Subscriber’s own experience or as a result of advice
received from a person registered under applicable securities legislation;
	 
	 	(iii)	 	is aware of the characteristics of the Common Shares and the
risks relating to an investment therein, including, without limitation, those
risks set out in the Company’s publicly available information including that
set out in Schedule “E” hereto;

A-8

 

	 	(iv)	 	is able to bear the economic risk of loss of its investment in
the Common Shares;
	 
	 	(v)	 	is an accredited investor as such term is defined in Regulation
D under the U.S. Securities Act;
	 
	 	(vi)	 	the Subscriber is not a resident of any of the provinces or
territories of Canada; and
	 
	 	(vii)	 	the Subscriber has no intention of trading in the Common
Shares in any of the provinces or territories of Canada during the period that
commences with the issuance of the Common Shares until June 24, 2011.

	 	(t)	 	The Subscriber understands that it is purchasing the Common Shares directly
from the Company.

			
	5.2	 	Acknowledgments of the Subscriber

     The Subscriber, on its own behalf and, if applicable, on behalf of others for whom it is
acting hereunder, acknowledges and agrees as follows:

	 	(a)	 	The Subscriber has received and reviewed the principal terms of the Offering.
	 
	 	(b)	 	The Subscriber acknowledges that the aggregate gross proceeds of the Offering
will be up to approximately $___and will result in the issuance of
___Common Shares.
	 
	 	(c)	 	No securities commission, agency, governmental authority, regulatory body,
stock exchange or similar regulatory authority has reviewed, passed upon, made any
finding or determination, or recommended or endorsed on the merits of the Common
Shares.
	 
	 	(d)	 	Subject to the registration rights described in Schedule “D”, the Securities
shall be subject to statutory resale restrictions under the Securities Laws of the
jurisdiction in which the Subscriber resides and the U.S. Securities Act and under
other applicable Securities Laws, and the Subscriber covenants that it will not resell
any of the Securities except in compliance with such laws and the Subscriber
acknowledges that it is solely responsible (and the Company and the Agents are not in
any way responsible) to understand what those restrictions are and to comply with them
before selling any of the Securities.
	 
	 	(e)	 	The Subscriber’s ability to transfer any of the Securities is limited by, among
other things, applicable Securities Laws and the Securities will not be
transferable without the consent of the Company, on or before June 24, 2011.
	 
	 	(f)	 	The certificates representing the Common Shares will bear, as of the Closing
Date, a legend substantially in the following form and with the necessary information
inserted:
	 
	 	 	 	UNLESS PERMITTED UNDER SECURITIES LAWS AND CONSENTED TO BY SWISHER HYGIENE INC., THE
HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE JUNE 24, 2011.
	 
	 	(g)	 	In addition, the certificates representing the Common Shares, will also bear a
legend substantially in the following form:
	 
	 	 	 	“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE LISTED ON THE TORONTO STOCK
EXCHANGE (“TSX”); HOWEVER, THE SAID SECURITIES CANNOT BE TRADED THROUGH THE
FACILITIES OF THE TSX SINCE THEY ARE NOT FREELY TRANSFERABLE, AND CONSEQUENTLY ANY
CERTIFICATE
REPRESENTING SUCH SECURITIES IS NOT “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON
THE TSX.”

A-9

 

	 	(h)	 	The Subscriber, and each beneficial purchaser for whom it is acting hereunder,
shall execute, deliver, file and otherwise assist the Company with filing all
documentation required by the applicable Securities Laws to permit the subscription for
the Common Shares and the issuance of the Securities.
	 
	 	(i)	 	No prospectus or offering memorandum, within the meaning of the Securities
Laws, or other similar disclosure document has been filed by the Company with a
securities commission, securities regulatory authority or other governmental or
regulatory authority in the United States, or any other jurisdiction in connection with
the issuance of the Common Shares.
	 
	 	(j)	 	The Company is relying on the representations, warranties and covenants
contained herein and in the applicable Schedules attached hereto to determine the
Subscriber’s eligibility to subscribe for the Common Shares under applicable Securities
Laws.
	 
	 	(k)	 	The Securities are “restricted securities” as defined in Rule 144(a)(3) under
the U.S. Securities Act and have not been registered under the U.S. Securities Act or
any state securities laws and may not be reoffered or resold in the United States or to
U.S. Persons unless registered under the U.S. Securities Act and applicable state
securities laws, as contemplated in Schedule “D”, or an exemption from such
registration requirements is available. Until resales of the Securities are registered
under the U.S. Securities Act, the Securities may not practically be able to be offered
and sold on the TSX pursuant to Rule 904 under the U.S. Securities Act since the
Securities will remain “restricted securities” pursuant to Rule 905 of Regulation S
under the U.S. Securities Act.
	 
	 	(l)	 	The Subscriber agrees that if the Subscriber decides to offer, sell, pledge or
otherwise transfer any of the Securities, the Subscriber will not offer, sell, pledge
or otherwise transfer any of the Securities, directly or indirectly, unless;

	 	(i)	 	the sale is to the Company; or
	 
	 	(ii)	 	made pursuant to an effective registration statement under the
U.S. Securities Act; or
	 
	 	(iii)	 	the sale is made outside the United States in compliance with
the requirements of Rule 904 of Regulation S under the U.S. Securities Act and
in compliance with applicable local laws and regulations; or
	 
	 	(iv)	 	the sale is made in compliance with an exemption from
registration under the U.S. Securities Act provided by Rule 144 thereunder, if
available, and in accordance with any applicable state securities law; or
	 
	 	(v)	 	the Securities are sold in a transaction that does not require
registration under the U.S. Securities Act or any applicable state securities
laws.

	 	(m)	 	There is no government insurance or other insurance covering the Securities.
	 
	 	(n)	 	AN INVESTMENT IN THE COMMON SHARES IS NOT WITHOUT RISK, INCLUDING, WITHOUT
LIMITATION, THOSE RISKS SET FORTH IN THE COMPANY’S FILINGS UNDER THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED, WHICH FILINGS AS AT THE DATE HEREOF, ARE LISTED IN
SCHEDULE “E” HERETO AND THE SUBSCRIBER (AND ANY BENEFICIAL PURCHASER) MAY LOSE HIS, HER
OR ITS ENTIRE INVESTMENT.

A-10

 

	 	(o)	 	The Company may complete additional financings in the future in order to
develop the business of the Company and fund its ongoing development, and such future
financings may have a dilutive effect on current securityholders of the Company,
including the Subscriber, but there is no assurance that such financing will be
available, on reasonable terms or at all, and if not available, the Company may be
unable to fund its ongoing development.
	 
	 	(p)	 	The Subscriber, and each beneficial person for whom it is contracting
hereunder, is responsible for obtaining such legal, investment, tax and other
professional advice as it considers appropriate in connection with the execution,
delivery and performance of this Subscription Agreement and the transactions
contemplated under this Subscription Agreement (including the resale and transfer
restrictions referred to herein), and, without limiting the generality of the
foregoing, the Company’s counsel are acting solely as counsel to the Company and not as
counsel to the Subscriber.
	 
	 	(q)	 	The Common Shares have not been registered under the U.S. Securities Act or any
state securities laws, and the sale contemplated hereby is being made in reliance on
the a private placement exemption to Accredited Investors (as defined in Rule 506 under
the U.S. Securities Act).
	 
	 	(r)	 	The Subscriber understands that, until such time as is no longer required under
applicable requirements of the U.S. Securities Act or applicable state securities laws,
all certificates representing the Securities, as well as all certificates issued in
exchange for or in substitution of the foregoing securities, will bear a legend to the
following effect:
	 
	 	 	 	THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”) OR ANY STATE
SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE
BENEFIT OF THE COMPANY THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED ONLY: (A) TO THE COMPANY, (B) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT, (C) OUTSIDE THE UNITED STATES
IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT IF
AVAILABLE, (D) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES
ACT PROVIDED BY RULE 144, IF AVAILABLE, AND IN COMPLIANCE WITH ANY STATE SECURITIES
LAWS, OR (E) WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY, PURSUANT TO ANOTHER
EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE
SECURITIES LAWS; PROVIDED THAT, IN CONNECTION WITH A TRANSFER PURSUANT TO (C), (D)
OR (E) ABOVE, TO THE EXTENT REQUESTED BY THE COMPANY, AN OPINION OF COUNSEL, OF
RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE COMPANY HAS BEEN PROVIDED TO THE
COMPANY TO SUCH EFFECT.
	 
	 	 	 	if the Securities are being sold pursuant sections (C) through (E) of the foregoing
legend, the legend may be removed by delivery to the Company’s registrar and
transfer agent and, to the extent requested by the Company, to the Company of an
opinion of counsel, of recognized standing in form and substance satisfactory to the
Company, that such legend is no longer required under applicable requirements of the
U.S. Securities Act or state securities laws.
	 
	 	(s)	 	The Subscriber understands and agrees that there may be material tax
consequences to the Subscriber of an acquisition or disposition of the Securities, and
the Subscriber acknowledges that it is responsible for determining the tax consequences
of its investments. The Company gives no opinion and makes no representation with
respect to the tax consequences to the Subscriber under United States, state, local or
other foreign tax law of the Subscriber’s acquisition or disposition of such
securities.

A-11

 

	 	(t)	 	Subject to the terms and conditions of the registration rights set forth in
Schedule “D”, it acknowledges that such registration rights may be amended or waived by
holders holding a majority of the Registrable Securities (as defined in Schedule “D”)
pursuant to Section 7(d) thereof, and that the Company’s obligations under Schedule “D”
are conditioned upon the Subscriber cooperating with the Company as reasonably
requested by the Company in connection with the preparation and filing of any
Registration Statement hereunder, including but not limited to providing such
information in a timely manner regarding itself, the Common Shares and other securities
of the Company held by it and the intended method of disposition of the Common Shares
as shall be reasonably required to effect and maintain the effectiveness of the
registration of such Common Shares.

ARTICLE 6 — SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS

			
	6.1	 	Survival of Representations, Warranties and Covenants of the Company

     The representations, warranties and covenants of the Company contained in this Subscription
Agreement shall survive the Closing and, notwithstanding such Closing or any investigation made by
or on behalf of the Subscriber with respect thereto, shall continue in full force and effect for
the benefit of the Subscriber.

ARTICLE 7 — COLLECTION OF PERSONAL INFORMATION

			
	7.1	 	Collection of Personal Information

     The Subscriber acknowledges and consents to the fact that the Company are collecting the
Subscriber’s (and any beneficial purchaser for which the Subscriber is contracting hereunder)
personal information for the purpose of completing the Subscriber’s subscription. The Subscriber
acknowledges and consents to the Company retaining the personal information for so long as
permitted or required by applicable law or business practices. The Subscriber further acknowledges
and consents to the fact that the Company may be required by Securities Laws and/or stock exchange
rules to provide regulatory authorities any personal information provided by the Subscriber
respecting itself (and any beneficial purchaser for which the Subscriber is contracting hereunder).
The Subscriber represents and warrants that it has the authority to provide the consents and
acknowledgements set out in this paragraph on behalf of all beneficial purchasers for which the
Subscriber is contracting. In addition to the foregoing, the Subscriber agrees and acknowledges
that the Company, as the case may be, may use and disclose its personal information, or that of
each beneficial purchaser for whom it is contracting hereunder, including as follows:

	 	(a)	 	for internal use with respect to managing the relationships between and
contractual obligations of the Company, and the Subscriber or any beneficial purchaser
for whom the Subscriber is contracting hereunder;
	 
	 	(b)	 	for use and disclosure for income tax related purposes, including where
required by law, disclosure to any or US taxation authority;
	 
	 	(c)	 	for disclosure to securities regulatory authorities and other regulatory bodies
with jurisdiction with respect to reports of trades and similar regulatory filings;
	 
	 	(d)	 	for disclosure to a governmental or other authority to which the disclosure is
required by court order or subpoena compelling such disclosure and where there is no
reasonable alternative to such disclosure;
	 
	 	(e)	 	for disclosure to professional advisers of the Company in connection with the
performance of their professional services;
	 
	 	(f)	 	for disclosure to any person where such disclosure is necessary for legitimate
business reasons and is made with the Subscriber’s prior written consent;

A-12

 

	 	(g)	 	for disclosure to a court determining the rights of the parties under this
Subscription Agreement; or
	 
	 	(h)	 	for use and disclosure as otherwise required by law.

     The contact information for the officer and for counsel of the Company who can answer
questions about this collection of information is as follows:

	 	 	 	 	 	 	 
	Swisher Hygiene Inc.	 	Akerman Senterfitt
	4725 Piedmont Row Drive, Suite 400	 	350 East Las Olas Boulevard, Suite 1600
	Charlotte, North Carolina,	 	Fort Lauderdale, Florida
	28210	 	33301-2229	 	 
	 
	 	 	 	 	 	 
	Attention:

	 	Tom Aucamp
	 	Attention:
	 	Edward Ristaino
	Facsimile:

	 	(704) 602-7970
	 	Facsimile:
	 	(954) 463-2224

ARTICLE 8 — MISCELLANEOUS

			
	8.1	 	Further Assurances

     Each of the parties hereto upon the request of each of the other parties hereto, whether
before or after the Closing Time, shall do, execute, acknowledge and deliver or cause to be done,
executed, acknowledged and delivered all such further acts, deeds, documents, assignments,
transfers, conveyances, powers of attorney and assurances as may reasonably be necessary or
desirable to complete the transactions contemplated herein.

			
	8.2	 	Notices

	 	(a)	 	Any notice, direction or other instrument required or permitted to be given to
any party hereto shall be in writing and shall be sufficiently given if delivered
personally, or transmitted by facsimile tested prior to transmission to such party, as
follows:

	 	(i)	 	in the case of the Company, to:
	 
	 	 	 	Swisher Hygiene Inc.

4725 Piedmont Row Drive, Suite 400

Charlotte, North Carolina, 28210
	 
	 	 	 	Attention: Tom Aucamp

Fax:            (704) 602-7970

A-13

 

	 	 	 	with a copy to:
	 
	 	 	 	Akerman Senterfitt

350 East Las Olas Boulevard, Suite 1600

Fort Lauderdale, Florida

33301-2229
	 
	 	 	 	Attention:  Edward Ristaino

Fax:             (954) 463-2224

	 	(ii)	 	in the case of the Subscriber, at the address specified on the face page hereof.

	 	(b)	 	Any such notice, direction or other instrument, if delivered personally, shall
be deemed to have been given and received on the day on which it was delivered,
provided that if such day is not a Business Day then the notice, direction or other
instrument shall be deemed to have been given and received on the first Business Day
next following such day and if transmitted by fax or electronic transmission, shall be
deemed to have been given and received on the day of its transmission, provided that if
such day is not a Business Day or if it is transmitted or received after the end of
normal business hours then the notice, direction or other instrument shall be deemed to
have been given and received on the first Business Day next following the day of such
transmission.
	 
	 	(c)	 	Any party hereto may change its address for service from time to time by notice
given to each of the other parties hereto in accordance with the foregoing provisions.

			
	8.3	 	Time of the Essence

     Time shall be of the essence of this Subscription Agreement and every part hereof.

			
	8.4	 	Costs and Expenses

     All costs and expenses (including, without limitation, the fees and disbursements of legal
counsel) incurred in connection with this Subscription Agreement and the transactions herein
contemplated shall be paid and borne by the party incurring such costs and expenses.

			
	8.5	 	Applicable Law

     This Subscription Agreement shall be construed and enforced in accordance with, and the rights
of the parties shall be governed by, the laws of the state of Delaware. Any and all disputes
arising under this Subscription Agreement, whether as to interpretation, performance or otherwise,
shall be subject to the non-exclusive jurisdiction of the courts of the state of Delaware and each
of the parties hereto hereby irrevocably attorns to the jurisdiction of the courts of such state.

			
	8.6	 	Entire Agreement

     This Subscription Agreement, including the Schedules hereto and the Securities Purchase
Agreement constitutes the entire agreement between the parties with respect to the transactions
contemplated herein and cancels and supersedes any prior understandings, agreements, negotiations
and discussions between the parties. There are no representations, warranties, terms, conditions,
undertakings or collateral agreements or understandings, express or implied, between the parties
hereto other than those expressly set forth in this Subscription Agreement or in any such
agreement, certificate, affidavit, statutory declaration or other document as aforesaid. This
Subscription Agreement may not be amended or modified in any respect except by written instrument
executed by each of the parties hereto.

A-14

 

			
	8.7	 	Counterparts

     This Subscription Agreement may be executed in two or more counterparts, each of which shall
be deemed to be an original and all of which together shall constitute one and the same
Subscription Agreement. Counterparts may be delivered either in original or faxed form and the
parties adopt any signature received by a receiving fax machine as original signatures of the
parties.

			
	8.8	 	Electronic Delivery of Subscription

     The Company shall be entitled to rely on delivery by fax or e-mail of an executed copy of this
Subscription Agreement, including the completed Schedules to this Subscription Agreement, and
acceptance by the Company of the fax or e-mail copy shall be legally effective to create a valid
and binding agreement between the Subscriber and the Company in accordance with the terms of this
Subscription Agreement.

			
	8.9	 	Amendments

     The provisions of this Subscription Agreement may only be amended with the written consent of
the other parties hereto.

			
	8.10	 	Assignment

     This Subscription Agreement may not be assigned by either party except with the prior written
consent of the other parties hereto.

			
	8.11	 	Enurement

     This Subscription Agreement shall enure to the benefit of and be binding upon the parties
hereto and their respective heirs, executors, successors (including any successor by reason of the
amalgamation or merger of any party), administrators and permitted assigns.

			
	8.12	 	Massachusetts Business Trust.

     A copy of the Agreement and Declaration of Trust of each Purchaser or any affiliate thereof is
on file with the Secretary of State of the Commonwealth of Massachusetts and notice is hereby given
that this Agreement is executed on behalf of the trustees of such Purchaser or any affiliate
thereof as trustees and not individually and that the obligations of this Agreement are not binding
on any of the trustees, officers or stockholders of such Purchaser or any affiliate thereof
individually but are binding only upon such Purchaser or any affiliate thereof and its assets and
property.

A-15

 

SCHEDULE “B”

SWISHER HYGIENE INC.

TERM SHEET

PRIVATE PLACEMENT OF COMMON SHARES

			
	Issuer:	 	Swisher Hygiene Inc. (the “Company”).

			
	Offering:	 	12,000,000 shares of common stock (a “Common Share”) of the Company.

			
	Size of Offering:	 	US $60,000,000

			
	Price:	 	$5.00 per Common Share

			
	Use of Proceeds:	 	The net proceeds of the Offering will be used for general corporate purposes.

			
	Hold Periods:	 	Transfer of the Common Shares are subject to all applicable securities laws
and the Common Shares may not be transferred to insiders of the Company. As
described in more detail below, for those investors who are not “affiliates”
of the Company, as defined under the US Securities Act (as defined below),
the securities sold under the Offering will be subject to a “hold period”
that will expire on the later of:

	 	a)	 	a contractual hold period (the “Contractual Hold Period”) until June 24,
2011; and
	 
	 	 	 	the earlier of: (i) upon effectiveness of a resale registration statement in
the United States, and (ii) one year after the Company has filed “Form 10
information” (as defined in Rule 144(i)(3) under the US Securities Act) with
the Commission (as defined below), anticipated to expire on November 10,
2011.

			
	Resale Restrictions
and
Filing of U.S. 
Registration 
Statement: 
	 	The securities issued in the Offering, and issuable upon exchange or
exercise, are “restricted securities” as defined in Rule 144 under the US
Securities Act, and may not be resold without registration under the U.S.
Securities Act and applicable state securities laws unless an exemption from
registration is available. The Company agrees to file a registration
statement with the U.S. Securities and Exchange Commission (the
“Commission”) for resale of the Common Shares (as defined below) under the
US Securities Act as soon as practicable after Closing, but not later than
April 30, 2011, and, to use commercially reasonable efforts to cause the
registration statement to become effective within 90 calendar days following
the filing of such registration statement and to remain effective until the
later of (i) such time as all of the Registrable Securities have been sold
by purchaser and (ii) for as long as the Registrable Securities covered by
the Registration Statement are held by purchaser, the Company will maintain
current information so that the purchaser may sell the Registrable
Securities pursuant to Rule 144(i). In addition, the Common Shares issuable
on the Closing Date will be subject to a hold period commencing on the
Closing Date until June 24, 2011. A “legend” regarding such hold period, or
required other applicable securities laws, or stock exchange rules will
appear on the securities certificates, together with such additional legends
as may be appropriate in the circumstances. Notwithstanding the Company’s
agreement to file a resale registration statement, the Company may delay or
suspend the effectiveness of the Registration Statement (a “Delay Period”)
if the board of directors of the Company determines in good faith that
effectiveness should be suspended in accordance with the rules and
regulations under the US Securities Act or that the disclosure of material
non-public information at such time would be detrimental to the Company and
its subsidiaries, taken as a whole; provided that the term of any Delay
Period and any period(s) during which the registration statement is not
available to enable holders to effect resales thereunder, shall extend the
period the registration statement is required to be effective. The
aggregate Delay Period for all pending developments shall not exceed 60
consecutive calendar days in any 365-day period. Notwithstanding the
foregoing, the Company shall use its commercially reasonable efforts to
ensure that the registration statement is declared effective and its
permitted use is resumed following a suspension as promptly as practicable
and that in no event will a Delay Period be in effect or the ability of
holders to effect resales under such registration statement be impaired
during any period in which the Company is effecting a primary public
offering of its securities in the United States or Canada, thus giving
effect to the intention that purchasers
in this Offering shall have the
ability to effect public resales of their securities at the same time and on
the same basis as purchasers in any such primary public offering.

B-1

 

			
	Offering 

Jurisdictions:	 	Private placement to “accredited investors” in the
United States pursuant to Regulation D under the United States Securities Act of 1933, as amended (the
“US Securities Act”) or in such other manner as to not require registration
under the U.S. Securities Act, and jurisdictions other than the United
States, provided that the Company is not required to file a prospectus or
other disclosure document or become subject to continuing reporting
obligations in such other jurisdictions.

			
	Listing and 

Regulatory 

Approval:	 	The Common Shares trade on the Toronto Stock Exchange under
the symbol “SWI” and on the NASDAQ under the symbol “SWSH”. The listing of the Common Shares
is subject to approval of the Toronto Stock Exchange.

			
	Closing Date:	 	On or about March 23, 2011

B-2

 

SCHEDULE “C”

CERTIFICATE OF SUBSCRIBER

UNITED STATES ACCREDITED INVESTOR CERTIFICATE

			
	TO:	 	SWISHER HYGIENE INC. (the “Company”)

			
	RE:	 	SUBSCRIPTION FOR COMMON SHARES OF THE COMPANY

 

Capitalized terms not otherwise defined herein shall have the meanings attributed thereto in the
subscription agreement to which this certificate was attached.

The undersigned (the “Subscriber”) represents, warrants and covenants to the Company that:

1. the Subscriber (and if the Subscriber is acting on behalf of a principal, then also for the
principal for whom the Subscriber is acting) satisfies one or more of the categories of “accredited
investor” as that term is defined in Rule 501 of the Securities Act of 1933, as amended (the “U.S.
Securities Act”), by virtue of the Subscriber being:

[please indicate “Sub” for Subscriber, and if acting on behalf of one or more beneficial purchaser,
“BP” for each beneficial purchaser]

	 	 	 
	___ Category 1.

	 	An organization described in Section 501(c)(3) of the
United States Internal Revenue Code, a corporation, a
Massachusetts or similar business trust or partnership,
not formed for the specific purpose of acquiring the
Common Shares, with total assets in excess of
US$5,000,000
	 
	 	 
	___ Category 2.

	 	A natural person whose individual net worth or joint net
worth with that person’s spouse, at the date hereof,
exceeds US$1,000,000, excluding the value of the primary
residence of such natural person, calculated by
subtracting from the estimated fair market value of the
property the amount of debt secured by the property, up
to the estimated fair market value of the property
	 
	 	 
	___ Category 3.

	 	A natural person who had an individual income in excess
of US$200,000 in each of the two most recent years or
joint income with that person’s spouse in excess of
US$300,000 in each of those years and has a reasonable
expectation of reaching the same income level in the
current year
	 
	 	 
	___ Category 4.

	 	A trust that: (a) has total assets in excess of
US$5,000,000, (b) was not formed for the specific
purpose of acquiring the Common Shares, and (c) is
directed in its purchases of securities by a person who
has such knowledge and experience in financial and
business matters that he/she is capable of evaluating
the merits and risks of an investment in the Common
Shares
	 
	 	 
	___ Category 5.

	 	Any bank as defined in Section 3(a)(2) of the U.S.
Securities Act or any savings and loan association or
other institution as defined in Section 3(a)(5)(A) of
the U.S. Securities Act whether acting in its individual
or fiduciary capacity; any broker dealer registered
pursuant to Section 15 of the United States Securities
Exchange Act of 1934; any insurance company as defined
in Section 2(13) of the U.S. Securities Act; any
investment company registered under the Investment
Company Act of 1940 or a business development company as
defined in Section 2(a)(48) of that Act; any Small
Business Investment Company licensed by the U.S. Small
Business Administration under Section 301(c) or (d) of
the Small Business Investment Act of 1958; any plan
established and maintained by a state, its political
subdivisions, or any agency or instrumentality of a
state or its political subdivisions, for the benefit of
its employees, if such plan has total assets in excess
of US$5,000,000; or any employee benefit plan within the
meaning of the Employee Retirement Income Security Act
of 1974 (“ERISA”), if the investment decision is made by
a plan fiduciary, as defined in Section 3(21) of ERISA,
which is either a bank, savings and loan association,
insurance company, or registered investment adviser, or
if the employee benefit plan has total assets in excess
of US$5,000,000, or, if a self-directed plan, with
investment decisions made solely by persons that are
Accredited Investors

C-1

 

	 	 	 
	 
	 	 
	___ Category 6.

	 	Any director or executive officer of the issuer of the
securities being offered or sold.
	 
	 	 
	___ Category 7.

	 	A private business development as defined in Section
202(a)(22) of the Investment Advisors Acts of 1940
	 
	 	 
	___ Category 8.

	 	An entity in which all of the equity owners satisfy the
requirements of one or more of the foregoing categories

2. (a) if the undersigned is the Subscriber, he or she is making the above statement based on
personal knowledge of his or her financial situation and has reviewed personal financial
documentation with an accountant, financial advisor or other financial professional, if necessary,
to determine that the above statement is true; or (b) if the undersigned is other than the
Subscriber, he or she is making the above statement based on a review, if necessary, of the
financial statements of the Subscriber for the most recently completed financial year and any
interim financial statements prepared since the end of such financial year and has undertaken such
other review and due diligence necessary to determine and certify that the Subscriber is an
“accredited investor” as that term is defined in Rule 501(a) or any entity in which all of the
equity owners are “accredited investors” under the U.S. Securities Act; and

3. the Subscriber understands that the Company is relying on this certificate as evidence of the
Subscriber’s status as an institutional “accredited investor” in accordance with Rule 501(a) of the
U.S. Securities Act and further understands that the Company may, in its sole discretion, require
the Subscriber to execute a new and separate certificate each time the Subscriber subscribes for
additional Common Shares.

DATED at _____________ this ______ day of ____________________________, 2011.

	 	 	 	 	 
	 	 	 
	Signature of Subscriber (if an individual)	 	Name of Subscriber (if not an individual)
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	Per:	 	 
	 

	 	 	 	 
	Name of Subscriber (if an individual)

	 	 	 	(Signature of Authorized Representative)
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 	 	Name and Title of Authorized Representative

C-2

 

SCHEDULE “D”

REGISTRATION RIGHTS

Capitalized terms not otherwise defined herein shall have the meanings attributed thereto in the
Subscription Agreement to which this schedule is attached. The terms of this Schedule “D” are
incorporated by reference into the Subscription Agreement to which it is attached.

                    Section 1. Definitions. As used in this Schedule, the following terms have the
respective meanings set forth in this Section 1:

                    “Advice” has the meaning set forth in Section 7(c).

                    “Commission” means the U.S. Securities and Exchange Commission.

                    “Effective Date” means the date on which the Registration Statement is first declared
effective by the Commission.

                    “Effectiveness Period” has the meaning set forth in Section 2(a).

                    “Exchange Act” means the Securities Exchange Act of 1934, as amended.

                    “Holder” or “Holders” means the Investors and other holder or holders (assignees pursuant to
Section 7(f) hereof), as the case may be, from time to time of Registrable Securities.

                    “Indemnified Party” has the meaning set forth in Section 6(c).

                    “Indemnifying Party” has the meaning set forth in Section 6(c).

                    “Investor” means the Subscriber pursuant to the Subscription Agreement to which this Schedule
is attached.

                    “Losses” has the meaning set forth in Section 6(a).

                    “Proceeding” means an action, claim, suit, investigation or proceeding (including, without
limitation, an investigation or partial proceeding, such as a deposition), whether commenced or
threatened.

                    “Prospectus” means the final prospectus included in the Registration Statement (including,
without limitation, a prospectus that includes any information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A promulgated under
the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the
terms of the offering of any portion of the Registrable Securities covered by the Registration
Statement, and all other amendments and supplements to the Prospectus, including post effective
amendments, and all material incorporated by reference or deemed to be incorporated by reference in
such Prospectus.

                    “Registrable Securities” means: (i) the Shares, and (ii) any securities issued or issuable
upon any stock split, dividend or other distribution, recapitalization or similar event. Such
securities will cease to be Registrable Securities upon transfer pursuant to the Registration
Statement or Rule 144 under the Securities Act or at such time as such securities become
transferable without any restrictions or limitations in accordance with Rule 144(b) (or any
successor provision).

                    “Registration Statement” means the registration statement required to be filed hereunder,
including the Prospectus, amendments and supplements to such registration statements or Prospectus,
including pre and post effective amendments, all exhibits thereto, and all material incorporated
by reference or deemed to be incorporated by reference therein.

D-1

 

                    “Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by
the Commission having substantially the same effect as such Rule.

                    “Rule 415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by
the Commission having substantially the same effect as such Rule.

                    “Rule 424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as
such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by
the Commission having substantially the same effect as such Rule.

                    “Securities Act” means the United States Securities Act of 1933, as amended.

                    “Shares” means the shares of Common Stock issued or issuable to the Investors pursuant to the
Securities Purchase Agreement.

                    “Trading Day” means any day on which the TSX or the NASDAQ is open for trading.

                    Section 2. Registration.

	 	(a)	 	The Company shall prepare and file with the Commission the Registration
Statement covering the resale of all Registrable Securities for an offering to be made
on a continuous basis pursuant to Rule 415, on Form S-1 no later than April 30, 2011
(the “Filing Deadline”). Such Registration Statement shall contain (except if
otherwise required pursuant to written comments received from the Commission upon a
review of the Registration Statement) the “Plan of Distribution” attached hereto as
Annex A. The Company shall use commercially reasonable efforts to cause the
Registration Statement to be declared effective under the Securities Act as soon as
possible and in any event by no later than the date which is 90 calendar days after the
earlier of the Filing Deadline or the actual date of filing the S-1 with the SEC (the
“Effectiveness Deadline”), and shall use its commercially reasonable efforts to keep
the Registration Statement continuously effective and available for use by Holders
under the Securities Act until the date which is the later of (i) such time as all of
the Registrable Securities covered by the Registration Statement have been publicly
sold by the Holders or (ii) for as long as any of the Registrable Securities covered by
the Registration Statement are held by Holder, the Company covenants to maintain
current information so that such Holder may sell the Registrable Securities pursuant to
Rule 144(i) (the “Effectiveness Period”).
	 
	 	(b)	 	Within three business days following the date on which the Registration
Statement is declared effective by the Commission, and assuming no stop-order has been
issued with respect to the Registration Statement, the Company shall furnish to each
Holder a letter, dated such date, of outside counsel representing the Company addressed
to such Holder, confirming such effectiveness and, to the knowledge of such counsel,
the absence of any stop order.
	 
	 	(c)	 	If: (i) the Registration Statement is not filed with the SEC on or prior to the
Filing Deadline, (ii) the Registration Statement is not declared effective by the SEC
(or otherwise does not become effective) for any reason on or prior to the
Effectiveness Deadline, other than as a result of any open issues arising out of any
routine SEC review of 1934 Act filings in effect as of the date hereof, or (iii) after
its effective date, (A) such Registration Statement ceases for any reason (including,
without limitation, by reason of a stop order, or the Company’s failure to update the
Registration Statement), to remain effective as to all Registrable Securities for which
it is required to be effective hereunder or (B) the Purchasers are not permitted to
utilize the Prospectus therein to resell such Registrable Securities, in the case of
(A) and (B) other than during a Delay Period or (iv) a Delay Period exceeds the time
periods set forth in the proviso in Section 2(e) (any such failure or breach in clauses
(i) through (iv) above being referred to as an “Event”, and, for purposes of clauses
(i), (ii) or (iii), the date on which such Event occurs, or for purposes of clause (iv)
the date on which such Delay Period is exceeded, being referred to as an “Event Date”),
then,

D-2

 

	 	 	 	in addition to any other rights the Purchasers may have hereunder or under
applicable law, on each such Event Date and on each monthly anniversary of each such
Event Date (if the applicable Event shall not have been cured by such date) until
the applicable Event is cured, the Company shall pay to each Purchaser an amount in
cash, as liquidated damages and not as a penalty (“Liquidated Damages”), equal to
1.0% of the aggregate purchase price paid by such Purchaser pursuant to the
Securities Purchase Agreement for any Registrable Securities held by such Purchaser
on the Event Date, which remain subject to resale restrictions. The parties agree
that notwithstanding anything to the contrary herein or in the Securities Purchase
Agreement, no Liquidated Damages shall be payable (i) with respect to any
Registrable Securities which the Purchaser elects not to register on any applicable
Registration Statement; and (ii) with respect to any period after the expiration of
the Effectiveness Period (it being understood that this sentence shall not relieve
the Company of any Liquidated Damages accruing prior to the Effectiveness Period),
and (iii) with respect to any Registrable Securities that are no longer subject to
resale restrictions (it being understood that this sentence shall not relieve the
Company of any Liquidated Damages accruing prior to the period in which the
Registrable Securities are no longer subject to resale restrictions). If the
Company fails to pay any Liquidated Damages pursuant to this Section 2(c) in full
within ten (10) Business Days after the date payable, the Company will pay interest
thereon at a rate of 1.0% per month (or such lesser maximum amount that is permitted
to be paid by applicable law) to the Purchaser, accruing daily from the date such
Liquidated Damages are due until such amounts, plus all such interest thereon, are
paid in full. The Liquidated Damages pursuant to the terms hereof shall apply on a
daily pro-rata basis for any portion of a month prior to the cure of an Event,
except in the case of the first Event Date. The Effectiveness Deadline for a
Registration Statement shall be extended without default or Liquidated Damages
hereunder in the event that the Company’s failure to obtain the effectiveness of the
Registration Statement on a timely basis results from the failure of a Purchaser to
timely provide the Company with information requested by the Company and necessary
to complete the Registration Statement in accordance with the requirements of the 33
Act (in which case the Effectiveness Deadline would be extended with respect to
Registrable Securities held by such Purchaser).
	 
	 	(d)	 	Each Holder agrees to furnish to the Company a completed Questionnaire in the
form attached to this Schedule as Annex B (a “Selling Holder Questionnaire”) no later
than the Closing Date. The Company shall not be required to include the Registrable
Securities of a Holder in the Registration Statement who fails to furnish to the
Company a fully completed Selling Holder Questionnaire by the later of (i) the Closing
Date or (ii) at least five Trading Days prior to the date of filing of the Registration
Statement or pre-effective amendment to the Registration Statement (in no event is the
Company required to delay filing the Registration Statement or any pre-effective
amendment thereto). Each Holder also agrees to provide the Company with such other
information as may be reasonably requested by the Company in connection with the
preparation and filing of any Registration Statement hereunder, including but not
limited to providing such information in a timely manner regarding itself, the
Registrable Securities and other securities of the Company held by it and the intended
method of disposition of the Registrable Securities as shall be reasonably required to
effect and maintain the effectiveness of the registration of such Registrable
Securities. The Company shall not be required to include the Registrable Securities of
a Holder who fails to provide such reasonably requested information or who objects to
the inclusion of required disclosure in the Registration Statement regarding such
Holder, the Registrable Securities and other securities of the Company held by it and
the intended method of disposition of the Registrable Securities.
	 
	 	(e)	 	Notwithstanding Section 2(a) hereof, the Company may delay or suspend the
effectiveness of the Registration Statement (a “Delay Period”) if the board of
directors of the Company determines in good faith that effectiveness of the
Registration Statement should be suspended in accordance with the rules and regulations
under the Securities Act or that the disclosure of material non-public information
(“Pending Developments”) at such time would be detrimental to the Company and its
subsidiaries, taken as a whole; provided that if a Delay Period occurs or if, for any
other reason, after effectiveness the Registration Statement is not available to enable
Holders to effect resales thereunder, the term of any Delay Period(s) and period(s)
during which the Registration Statement is otherwise unavailable for use in effecting
such resales, the period during which the Registration

D-3

 

	 	 	 	Statement shall be required to remain effective specified in clause (i) of Section
2(a) of this Schedule “D” shall be extended by the aggregate of the term(s) of any
Delay Period(s) or other period(s) during which the Registration Statement may not
be used by Holders to effect resales thereunder. Notwithstanding the foregoing, in
no event will a Delay Period be in effect or the ability of the holders of the
Securities, or the common shares underlying these securities to effect resales under
such registration statement be impaired during any period in which the Company is
effecting a primary public offering of its securities in the United States or Canada
so that holders of the Securities, and the common shares underlying these
securities, shall have the ability to effect public resales of their securities at
the same time and on the same basis as purchasers in any such primary public
offering.

               The aggregate Delay Period for all Pending Developments shall not exceed 60 consecutive
calendar days in any 365-day period, and no less than 30 calendar days shall pass between
any consecutive 60 calendar day Delay Period. Notwithstanding the foregoing, the Company
shall use its commercially reasonable efforts to ensure that the Registration Statement is
declared effective and its permitted use is resumed following a suspension as promptly as
practicable. The Company shall not be required to specify in the written notice to the
Holders the nature of the event giving rise to the Delay Period. The notice of the
existence of a Pending Development shall remain confidential to such Holder until such
information otherwise becomes public, unless disclosure by the Holder is required by law and
provided that notwithstanding such Holder’s agreement to keep such information confidential,
each such Holder makes no acknowledgment that any such information is material.

	 	 	 	Section 3. Registration Procedures.
	 
	 	 	 	In connection with the Company’s registration obligations hereunder, the Company shall:
	 
	 	(a)	 	Not less than five Trading Days prior to the filing of the Registration
Statement or any related Prospectus or any amendment or supplement thereto, the Company
shall (i) furnish to each Holder copies of all such documents proposed to be filed,
which documents (other than those incorporated or deemed to be incorporated by
reference) will be subject to the review of such Holders, and (ii) cause its officers
and directors, counsel and independent certified public accountants to respond to such
inquiries as shall be necessary, in the reasonable opinion of respective counsel to
each Holder, to conduct a reasonable investigation within the meaning of the Securities
Act. The Company shall not file a Registration Statement or any Prospectus or any
amendments or supplements thereto to which a majority of the Holders of Registrable
Securities object in good faith, provided that the Company is notified of such
objection in writing no later than five Trading Days after the Holders have been so
furnished copies of a Registration Statement or any Prospectus or amendments or
supplements thereto. The Company and the Holders agree to act in good faith to resolve
such objections of the Holders.
	 
	 	(b)	 	(i) Prepare and file with reasonable promptness with the Commission such
amendments, including post effective amendments, to the Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep the Registration
Statement continuously effective as to the Registrable Securities for the Effectiveness
Period; (ii) cause the Prospectus to be amended or supplemented by any required
Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule
424; (iii) respond as promptly as reasonably possible to any comments received from the
Commission with respect to the Registration Statement or any amendment thereto; and
(iv) comply in all material respects with the provisions of the Securities Act and the
Exchange Act with respect to the Registration Statement and the disposition of all
Registrable Securities covered by the Registration Statement.

D-4

 

	 	(c)	 	Notify the Holders as promptly as reasonably possible (and, in the case of
(i)(A) and (iv) below, not less than three Trading Days prior to such filing and, in
the case of (v) below, not less than three Trading Days prior to the financial
statements in any Registration Statement becoming ineligible for inclusion therein) and
(if requested by any such Person) confirm such notice in writing no later than one
Trading Day following the day (i)(A) when a Prospectus or any Prospectus supplement or
post effective amendment to the Registration Statement is proposed to
be filed; (B) when the Commission notifies the Company whether there will be a
“review” of the Registration Statement and whenever the Commission comments in
writing on the Registration Statement (the Company shall provide true and complete
copies thereof and all written responses thereto to each of the Holders that pertain
to the Holders as a Selling Stockholder or to the Plan of Distribution, but not
information which the Company believes would constitute material and non-public
information); and (C) with respect to the Registration Statement or any post
effective amendment, when the same has become effective; (ii) of any request by the
Commission or any other Federal or state governmental authority for amendments or
supplements to the Registration Statement or Prospectus or for additional
information; (iii) of the issuance by the Commission or any other Federal or state
governmental authority of any stop order suspending the effectiveness of the
Registration Statement covering any or all of the Registrable Securities or the
initiation of any Proceedings for that purpose; (iv) of the receipt by the Company
of any notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any
jurisdiction, or the initiation or threatening of any Proceeding for such purpose;
and (v) of the occurrence of any event or passage of time that makes the financial
statements included in the Registration Statement ineligible for inclusion therein
or any statement made in the Registration Statement or Prospectus or any document
incorporated or deemed to be incorporated therein by reference untrue in any
material respect or that requires any revisions to the Registration Statement,
Prospectus or other documents so that, in the case of the Registration Statement or
the Prospectus, as the case may be, it will not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading, and (vi) the occurrence of a Delay Period.
	 
	 	(d)	 	Use its commercially reasonable efforts to avoid the issuance of, or, if
issued, obtain the withdrawal of (i) any order suspending the effectiveness of the
Registration Statement, or (ii) any suspension of the qualification (or exemption from
qualification) of any of the Registrable Securities for sale in any jurisdiction, at
the earliest practicable moment.
	 
	 	(e)	 	Furnish to each Holder, without charge, at least one conformed copy of the
Registration Statement and each amendment thereto and all exhibits to the extent
requested by such Person (including those previously furnished) promptly after the
filing of such documents with the Commission.
	 
	 	(f)	 	Promptly deliver to each Holder, without charge, copies of each Prospectus or
Prospectuses and each amendment or supplement thereto as such Persons may reasonably
request. The Company hereby consents to the use of such Prospectus and each amendment
or supplement thereto by each of the selling Holders in connection with the offering
and sale of the Registrable Securities covered by such Prospectus and any amendment or
supplement thereto.
	 
	 	(g)	 	The Company shall, at its own expense, cooperate with the Agents and U.S.
broker-dealers who, in connection with any resale, may reasonably be considered to be
acting as underwriters, with respect to any filing made by any of them with the
Financial Industry Regulatory Authority Inc. (“FINRA”) Corporate Financing Department
pursuant to FINRA Rule 5110(b)(i) so as to permit such filing and any amendments
thereto to be made on a timely basis, if required.
	 
	 	(h)	 	Cooperate with the Holders to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be delivered to a transferee
pursuant to the Registration Statement, which certificates shall be free, to the extent
permitted by the Subscription Agreement, of all restrictive legends, and to enable such
Registrable Securities to be in such denominations and registered in such names as any
such Holders may request.
	 
	 	(i)	 	Upon the occurrence of any event contemplated by Section 3(c)(v), use its
commercially reasonable efforts to ensure that the use of the Registration Statement or
Prospectus may be resumed as promptly as practicable and shall promptly prepare a
supplement or amendment, including a post effective amendment, to the Registration
Statement or a supplement to the related Prospectus or any document incorporated or
deemed to be incorporated therein by reference, and file any other required document so
that, as thereafter delivered, no Registration Statement nor any

D-5

 

	 	 	 	Prospectus will contain an 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 light of the circumstances under which they were made, not misleading.
The Company shall be entitled to exercise its right under this section 3(i) to
suspend the availability of a Registration Statement or Prospectus for an aggregate
period, including any Delay Period, not to exceed 60 calendar days in any 365-day
period, and no less than 30 calendar days between any consecutive 60 calendar day
Delay Period. Notwithstanding the foregoing, in no event will such a suspension be
in effect during any period in which the Company is effecting a primary public
offering of its securities in the United States or Canada, so that holders of the
Securities and the common shares underlying these securities shall have the ability
to effect public resales of their securities at the same time and on the same basis
as purchasers in any such primary public offering.
	 	(j)	 	Comply with all applicable rules and regulations of the Commission.
	 
	 	 	 	Section 4. Obligations of Each Holder. In connection with the registration
of Registrable Securities pursuant to the Registration Statement, each Holder shall:
	 
	 	(k)	 	in the event of an underwritten offering of such Registrable Securities in
which such Holder participates, enter into a customary and reasonable underwriting
agreement and execute such other documents as the Company and the managing underwriter
for such offering may reasonably request; and
	 
	 	(l)	 	notify the Company when it has sold all of the Registrable Securities held by
it.
	 
	 	 	 	Section 5. Registration Expenses. All fees and expenses incident to the
performance of or compliance with this Schedule by the Company shall be borne by the
Company whether or not any Registrable Securities are sold pursuant to the
Registration Statement. The fees and expenses referred to in the foregoing sentence
shall include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses of the Company’s counsel and auditors, and
other reasonable counsel fees and expenses, and including, without limitation, fees
and expenses (A) with respect to filings made with the Commission, (B) with respect
to filings required to be made with any trading market or exchange on which the
Common Stock is then listed for trading, (C) with respect to filing fees of FINRA
pursuant to FINRA Rule 5110, and (D) with respect to fees relating to compliance
with applicable state securities or Blue Sky laws in connection with Blue Sky
qualifications or exemptions of the Registrable Securities), (ii) messenger,
telephone and delivery expenses, (iii) fees and disbursements of counsel for the
Company, (iv) Securities Act liability insurance, if the Company so desires such
insurance, and (v) fees and expenses of all other Persons retained by the Company in
connection with the consummation of the transactions contemplated by this Schedule.
In addition, the Company shall be responsible for all of its internal expenses
incurred in connection with the consummation of the transactions contemplated by
this Schedule (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), the expense of any
annual audit and the fees and expenses incurred in connection with the listing of
the Registrable Securities on any securities exchange as required hereunder.

	 	 	 	Section 6. Miscellaneous.
	 
	 	(m)	 	Compliance. Each Holder covenants and agrees that it will comply with
the prospectus delivery requirements of the Securities Act as applicable to it in
connection with sales of Registrable Securities pursuant to the Registration Statement.
	 
	 	(n)	 	Discontinued Disposition. Each Holder agrees by its acquisition of
such Registrable Securities that, upon receipt of a notice from the Company of the
occurrence of any event of the kind described in Section 3(c)(iii) through (vi), such
Holder will forthwith discontinue disposition of such Registrable Securities under the
Registration Statement until such Holder’s receipt of the copies of the supplemented
Prospectus and/or amended Registration Statement or until it is advised in writing (the
“Advice”) by the Company that the use of the applicable Prospectus may

D-6

 

	 	(j)	 	be resumed, and, in either case, has received copies of any additional or
supplemental filings that are incorporated or deemed to be incorporated by reference
in such Prospectus or Registration Statement. The Company may provide appropriate
stop transfer orders to enforce the provisions of this paragraph. The Company will
use its commercially reasonable efforts to ensure that the use of the prospectus may
be resumed as promptly as is practicable. The Company agrees and acknowledges that
any periods during which the Holder is required to discontinue the disposition of
Registrable Securities pursuant to Section 3(c)(v) and (vi) hereunder shall be
subject to the limitations set forth in the last sentence of Section 3(h).
	 
	 	(o)	 	Delay of Registration. No Holder shall have any right to obtain or
seek an injunction restraining or otherwise delaying any such registration as the
result of any controversy that might arise with respect to the interpretation or
implementation of this Schedule.
	 
	 	(p)	 	Amendments and Waivers. The provisions of this Schedule, including the
provisions of this Section 6(d), may not be amended, modified or supplemented, and
waivers or consents to departures from the provisions hereof may not be given, unless
the same shall be in writing and signed by the Company and the Holders of no less than
a majority in interest of the Registrable Securities (treated together as a single
class). Notwithstanding the foregoing, a waiver or consent to depart from the
provisions hereof with respect to a matter that relates exclusively to the rights of
certain Holders and that does not directly or indirectly affect the rights of other
Holders may be given by Holders of at least a majority of the Registrable Securities to
which such waiver or consent relates.
	 
	 	(q)	 	Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be provided in accordance with the
terms of the Subscription Agreement to which this Schedule is attached; provided
however, that all written notices or copies of documents required to be provided
pursuant to this Schedule may be electronic copies transmitted electronically to the
Holder’s email address as set forth on the Selling Shareholder Questionnaire, or at set
other email address as provided to the Company by the Holder.
	 
	 	(r)	 	Successors and Assigns. The Company may not assign its rights or
obligations hereunder without the prior written consent of each Holder. The rights
under this Schedule shall be automatically assignable by the Investor to any transferee
of ___(___) Registrable Securities if: (i) the Investor agrees in
writing with the transferee or assignee to assign such rights, and a copy of such
agreement is furnished to the Company within a reasonable time after such assignment;
(ii) the Company is, within a reasonable time after such transfer or assignment,
furnished with written notice of (a) the name and address of such transferee or
assignee, and (b) the securities with respect to which such registration rights are
being transferred or assigned; (iii) the transfer of assignment is completed prior to
the effectiveness of the Registration Statement or immediately following such transfer
or assignment if the further disposition of the securities is restricted under the
Securities Act and applicable state securities laws; (iv) at or before the time the
Company receives the written notice contemplated by clause (ii) of this sentence the
transferee or assignee agrees in writing with the Company to be bound by all of the
provisions contained herein; and (v) such transfer shall have been made in accordance
with the applicable requirements of the Subscription Agreement.
	 
	 	(s)	 	Severability. If any term, provision, covenant or restriction of this
Schedule is held by a court of competent jurisdiction to be invalid, illegal, void or
unenforceable, the remainder of the terms, provisions, covenants and restrictions set
forth herein shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their commercially reasonable
efforts to find and employ an alternative means to achieve the same or substantially
the same result as that contemplated by such term, provision, covenant or restriction.
It is hereby stipulated and declared to be the intention of the parties that they would
have executed the remaining terms, provisions, covenants and restrictions without
including any of such that may be hereafter declared invalid, illegal, void or
unenforceable.

D-7

 

	(t)	 	Headings. The headings in this Schedule are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.
	 
	(u)	 	Independent Nature of Holders’ Obligations and Rights.  The obligations
of each Holder under this Schedule are several and not joint with the obligations of
each other Holder, and no Holder shall be responsible in any way for the performance of
the obligations of any other Holder under this Schedule. Nothing contained herein or
in any other agreement or document delivered at any closing, and no action taken by any
Holder pursuant thereto, shall be deemed to constitute the Holders as a partnership, an
association, a joint venture or any other kind of entity, or create a presumption that
the Holders are in any way acting in concert or as a group with respect to such
obligations or the transactions contemplated by this Schedule. Each Holder
acknowledges that no other Holder will be acting as agent of such Holder in enforcing
its rights under this Schedule. Each Holder shall be entitled to independently protect
and enforce its rights, including without limitation the rights arising out of this
Schedule, and it shall not be necessary for any other Holder to be joined as an
additional party in any Proceeding for such purpose. The Company acknowledges that
each of the Holders has been provided with the same Schedule for the purpose of closing
a transaction with multiple Holders and not because it was required or requested to do
so by any Holder.

D-8

 

ANNEX A

Plan of Distribution

     We are registering the shares of common stock to permit the resale of these shares of common
stock by the holders of the common stock from time to time after the date of this prospectus. We
will not receive any of the proceeds from the sale by the selling stockholders of the shares of
common stock. We will bear all fees and expenses incident to our obligation to register the shares
of common stock.

     The selling securityholders, or their pledgees, donees, transferees, or any of their
successors in interest selling shares received from a named selling securityholder as a gift,
partnership distribution or other non-sale-related transfer after the date of this prospectus (all
of whom may be selling securityholders), may sell the securities from time to time on any stock
exchange or automated interdealer quotation system on which the securities are listed, in the
over-the-counter market, in privately negotiated transactions or otherwise, at fixed prices that
may be changed, at market prices prevailing at the time of sale, at prices related to prevailing
market prices or at prices otherwise negotiated. The selling securityholders may sell the
securities by one or more of the following methods, without limitation:

	 	(a)	 	block trades in which the broker or dealer so engaged will attempt to sell the
securities as agent but may position and resell a portion of the block as principal to
facilitate the transaction;
	 
	 	(b)	 	purchases by a broker or dealer as principal and resale by the broker or dealer
for its own account pursuant to this prospectus;
	 
	 	(c)	 	an exchange distribution in accordance with the rules of any stock exchange on
which the securities are listed;
	 
	 	(d)	 	ordinary brokerage transactions and transactions in which the broker solicits
purchases;
	 
	 	(e)	 	privately negotiated transactions;
	 
	 	(f)	 	short sales;
	 
	 	(g)	 	through the writing of options on the securities, whether or not the options
are listed on an options exchange;
	 
	 	(h)	 	through the distribution of the securities by any selling securityholder to its
partners, members or stockholders;
	 
	 	(i)	 	one or more underwritten offerings on a firm commitment or best efforts basis;
and
	 
	 	(j)	 	any combination of any of these methods of sale.

     The selling securityholders may also transfer the securities by gift. We do not know of any
arrangements by the selling securityholders for the sale of any of the securities.

     The selling securityholders may engage brokers and dealers, and any brokers or dealers may
arrange for other brokers or dealers to participate in effecting sales of the securities. These
brokers, dealers or underwriters may act as principals, or as an agent of a selling securityholder.
Broker-dealers may agree with a selling securityholder to sell a specified number of the
securities at a stipulated price per security. If the broker-dealer is unable to sell securities
acting as agent for a selling securityholder, it may purchase as principal any unsold securities at
the stipulated price. Broker-dealers who acquire securities as principals may thereafter resell
the securities from time to time in transactions in any stock exchange or automated interdealer
quotation system on which the securities are then listed, at prices and on terms then prevailing at
the time of sale, at prices related to the then-current market price or in negotiated transactions.
Broker-dealers may use block transactions and sales to and through broker-dealers, including
transactions of the nature described above. The selling securityholders may also sell the
securities in
accordance with Rule 144 under the Securities Act of 1933, as amended, rather than pursuant to
this prospectus, regardless of whether the securities are covered by this prospectus.

 

 

     From time to time, one or more of the selling securityholders may pledge, hypothecate or grant
a security interest in some or all of the securities owned by them. The pledgees, secured parties
or persons to whom the securities have been hypothecated will, upon foreclosure in the event of
default, be deemed to be selling securityholders. The number of a selling securityholder’s
securities offered under this prospectus will decrease as and when it takes such actions. The plan
of distribution for that selling securityholder’s securities will otherwise remain unchanged. In
addition, a selling securityholder may, from time to time, sell the securities short, and, in those
instances, this prospectus may be delivered in connection with the short sales and the securities
offered under this prospectus may be used to cover short sales.

     To the extent required under the Securities Act of 1933, the aggregate amount of selling
securityholders’ securities being offered and the terms of the offering, the names of any agents,
brokers, dealers or underwriters and any applicable commission with respect to a particular offer
will be set forth in an accompanying prospectus supplement. Any underwriters, dealers, brokers or
agents participating in the distribution of the securities may receive compensation in the form of
underwriting discounts, concessions, commissions or fees from a selling securityholder and/or
purchasers of selling securityholders’ securities of securities, for whom they may act (which
compensation as to a particular broker-dealer might be in excess of customary commissions).

     The selling securityholders and any underwriters, brokers, dealers or agents that participate
in the distribution of the securities may be deemed to be “underwriters” within the meaning of the
Securities Act of 1933, and any discounts, concessions, commissions or fees received by them and
any profit on the resale of the securities sold by them may be deemed to be underwriting discounts
and commissions.

     A selling securityholder may enter into hedging transactions with broker-dealers and the
broker-dealers may engage in short sales of the securities in the course of hedging the positions
they assume with that selling securityholder, including, without limitation, in connection with
distributions of the securities by those broker-dealers. A selling securityholder may enter into
option or other transactions with broker-dealers that involve the delivery of the securities
offered hereby to the broker-dealers, who may then resell or otherwise transfer those securities.
A selling securityholder may also loan or pledge the securities offered hereby to a broker-dealer
and the broker-dealer may sell the securities offered hereby so loaned or upon a default may sell
or otherwise transfer the pledged securities offered hereby.

     The selling securityholders and other persons participating in the sale or distribution of the
securities will be subject to applicable provisions of the Securities Exchange Act of 1934, as
amended, and the rules and regulations thereunder, including Regulation M. This regulation may
limit the timing of purchases and sales of any of the securities by the selling securityholders and
any other person. The anti-manipulation rules under the Securities Exchange Act of 1934 may apply
to sales of securities in the market and to the activities of the selling securityholders and their
affiliates. Furthermore, Regulation M may restrict the ability of any person engaged in the
distribution of the securities to engage in market-making activities with respect to the particular
securities being distributed for a period of up to five business days before the distribution.
These restrictions may affect the marketability of the securities and the ability of any person or
entity to engage in market-making activities with respect to the securities.

     We have agreed to indemnify in certain circumstances the selling securityholders and any
brokers, dealers and agents who may be deemed to be underwriters, if any, of the securities covered
by the registration statement, against certain liabilities, including liabilities under the
Securities Act of 1933. The selling securityholders have agreed to indemnify us in certain
circumstances against certain liabilities, including liabilities under the Securities Act of 1933,
as amended.

     The securities of securities offered hereby were originally issued to the selling
securityholders pursuant to an exemption from the registration requirements of the Securities Act
of 1933, as amended. We agreed to register the securities under the Securities Act of 1933, and to
keep the registration statement of which this prospectus is a part effective until the earlier of
[the date on which the selling securityholders have sold all of the securities or two years after
the effective date of the registration statement]. We have agreed to pay all expenses in
connection with this offering, [including the fees and expenses of counsel or other advisors to the
selling securityholders,] but not
including underwriting discounts, concessions, commissions or fees of the selling
securityholders [or any fees and expenses of counsel or other advisors to the selling
securityholders].

     We will not receive any proceeds from sales of any securities by the selling securityholders.

     We cannot assure you that the selling securityholders will sell all or any portion of the
securities offered hereby.

 

 

ANNEX B

SELLING SECURITYHOLDER NOTICE AND QUESTIONNAIRE

     The undersigned beneficial owner of common stock (the “Registrable Securities”) of Swisher
Hygiene Inc., a Delaware corporation (the “Company”), understands that the Company has filed or
intends to file with the Securities and Exchange Commission (the “Commission”) a registration
statement (the “Registration Statement”) for the registration and resale under Rule 415 of the
Securities Act of 1933, as amended (the “Securities Act”), of the Registrable Securities, in
accordance with the terms of the Registration Rights (the “Registration Rights Agreement”) to which
this document is annexed. All capitalized terms not otherwise defined herein shall have the
meanings ascribed thereto in the Registration Rights Agreement. In lieu of the form of
Questionnaire attached to this Selling Shareholder Notice, the Selling Shareholder may submit a
questionnaire that it customarily uses provided that substantially similar information is provided.

     Certain legal consequences arise from being named as a selling securityholder in the
Registration Statement and the related prospectus. Accordingly, holders and beneficial owners of
Registrable Securities are advised to consult their own securities law counsel regarding the
consequences of being named or not being named as a selling securityholder in the Registration
Statement and the related prospectus.

     PLEASE FAX OR EMAIL A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE TO:

Akerman Senterfitt

350 East Las Olas Boulevard, Suite 1600

Fort Lauderdale, Florida

33301-2229

Attention:   Edward Ristaino

Facsimile:    (954) 463-2224

NOTICE

     The undersigned beneficial owner (the “Selling Securityholder”) of Registrable Securities
hereby elects to include the Registrable Securities owned by it in the Registration Statement.

 

 

     The undersigned hereby provides the following information to the Company and represents and
warrants that such information is accurate:

QUESTIONNAIRE

	 	 	 	 	 
	1.	 	NAME.
	 
	 	 	 	 
	 

	 	(a)
	 	Full Legal Name of Selling Securityholder
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	(b)
	 	Full Legal Name of Registered Holder (if not the same as (a) above) through
which Registrable Securities are held:
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	(c)
	 	Full Legal Name of Natural control person (which means a natural person who
directly or indirectly alone or with others has power to vote or dispose of the
securities covered by the questionnaire — ENTITIES MUST COMPLETE THIS QUESTION):
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	2.	 	ADDRESS FOR NOTICES TO SELLING SECURITYHOLDER:

      

      

      

			
	Telephone:	 	
 

			
	Fax:	 	
 

			
	Email:	 	
 

			
	Contact Person:	 	
 

	3.	 	BROKER-DEALER STATUS:

	 	(a)	 	Are you a broker-dealer?

Yes ___ No ___

	 	(b)	 	If “yes” to Section 3(a), did you receive your Registrable Securities as
compensation for investment banking services to the Company.

Yes ___ No ___

	 	 	 	Note: If no, the Commission’s staff has indicated that you should be identified as
an underwriter in the Registration Statement.
	 
	 	(c)	 	Are you an affiliate of a broker-dealer?

Yes ___ No ___

	 	(d)	 	If you are an affiliate of a broker-dealer. do you certify that you bought the
Registrable Securities in the ordinary course of business, and at the time of the
purchase of the Registrable Securities to

 

 

	 	 	be resold, you had no agreements or understandings, directly or indirectly, with any
person to distribute the Registrable Securities?

Yes ___ No ___

	 	 	Note: If no, the Commission’s staff has indicated that you should be identified as
an underwriter in the Registration Statement.
	 
	4.	 	BENEFICIAL OWNERSHIP OF SECURITIES OF THE COMPANY OWNED BY THE SELLING SECURITYHOLDER.
	 
	 	 	Except as set forth below in this Item 4, the undersigned is not the beneficial or
registered owner of any securities of the Company other than the securities issuable
pursuant to the Subscription Agreement.
	 
	(a)	 	Type and Amount of other securities beneficially owned by the Selling
Securityholder:
	 
	 	 	 

	 
	 	 	 

	5.	 	RELATIONSHIPS WITH THE COMPANY:
	 
	 	 	Except as set forth below, neither the undersigned nor any of its affiliates, officers,
directors or principal equity holders (owners of 5% of more of the equity securities of
the undersigned) has held any position or office or has had any other material
relationship with the Company (or its predecessors or affiliates) during the past three
years.
	 
	 	 	State any exceptions here:
	 
	 	 	 

	 
	 	 	 

     The undersigned agrees to promptly notify the Company of any inaccuracies or changes in the
information provided herein that may occur subsequent to the date hereof at any time while the
Registration Statement remains effective.

     By signing below, the undersigned consents to the disclosure of the information contained
herein in its answers to Items 1 through 5 and the inclusion of such information in the
Registration Statement and the related prospectus and any amendments or supplements thereto. The
undersigned understands that such information will be relied upon by the Company in connection with
the preparation or amendment of the Registration Statement and the related prospectus.

     IN WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice and
Questionnaire to be executed and delivered either in person or by its duly authorized agent.

			
	Dated:	 	
 

			
	Beneficial Owner:	 	
 

			
	By:	 	
 

			
	Name:	 	
 

			
	Title:	 	
 

 

 

SCHEDULE “E”

CURRENT 34 ACT FILINGS

Swisher Hygiene Inc.

	a)	 	Registration Statement on Form 10, filed with the SEC on November 9, 2010, as amended
on Form 10-A, filed with the SEC on December 15, 2010, January 11, 2011 and January 31,
2011;
	 
	b)	 	Current Reports on Form 8-K, filed with the SEC on January 12, 2011, January 31, 2011,
and February 11, 2011; and
	 
	c)	 	Registration Statement on Form 8-A, filed with the SEC on February 1, 2011.

E-1exv10w1

Exhibit 10.1

PURCHASE AGREEMENT

	 	 	 	 

	DATE:

	 	March 24, 2011
	 
	 	 	 
	SELLER:

	 	RIVERPOINT LOTS 1/3/5, LLC, an Arizona limited liability company
(“1/3/5 LLC”), and RIVERPOINT LOT 2, LLC, an Arizona limited
liability company (“2 LLC” and collectively with 1/3/5 LLC, the
“Seller”)
	 
	 	 	 
	 

	 	Address: 	4025 S Riverpoint Pkwy
	 

	 	 	Phoenix AZ 85040
	 

	 	Attention: 	President
	 

	 	Telephone: 	(602) 557-1714
	 

	 	Facsimile: 	(602) 557-1101
	 
	 	 	 
	BUYER:

	 	 	COLE OF PHOENIX AZ, LLC, a Delaware limited liability company
	 

	 	Address: 	c/o Cole Real Estate Investments
	 

	 	 	
2555 East Camelback Road, Suite 400
	 

	 	 	Phoenix, AZ 85016
	 

	 	Attention: 	Legal Department
	 

	 	Telephone: 	(602) 778-8700
	 

	 	Facsimile: 	(480) 449-7012
	 
	 	 	 
	ESCROW AGENT:

	 	 	FIRST AMERICAN TITLE INSURANCE COMPANY
	 

	 	Address: 	2425 East Camelback Road, Suite 300
	 

	 	 	
Phoenix, AZ 85016
	 

	 	Telephone: 	(602) 567-8145
	 

	 	Facsimile: 	(602) 567-8101
	 

	 	Escrow Officer: 	Brandon Grajewski

RECITALS

     A. 1/3/5 LLC is the owner of certain real property and improvements located in the Riverpoint
project located at the southwest corner of the I-10 freeway and 32nd Street in Phoenix
Arizona (the “Riverpoint Project”), and commonly known as Lot 1, Lot 3, and Lot 5 of Riverpoint,
according to the plat recorded in Book 566 of Maps, Page 04, in the records of Maricopa County,
Arizona (with each such Lot being referred to herein by its respective Lot number). 1/3/5 LLC is
also the owner of Tracts A through L, Riverpoint, according to Book 566 of Maps, page 04, records
of Maricopa County, Arizona (the “Median Tracts”). The improvements on Lot 1 include a 5 level
parking structure and surface parking area (the “Lot 1 Improvements”). The improvements on Lot 3
include a 10-story office building (the “Lot 3 Improvements”). The improvements on Lot 5 include
two (2) 6-story office buildings and a parking structure (the “Lot 5 Improvements”). The
improvements on the Median Tracts include landscaping and signage (the “Median Improvements”).

 

 

     B. 2 LLC is the owner of certain real property and improvements in the Riverpoint Project,
commonly known as Lot 2 of Riverpoint, according to the plat recorded in Book 566 of Maps, Page 04,
in the records of Maricopa County, Arizona (“Lot 2” and collectively with Lot 1, Lot 3 and Lot 5,
the “Lots”). The improvements on Lot 2 include a surface parking area (the “Lot 2 Improvements”
and collectively with the Lot 1 Improvements, the Lot 3 Improvements, the Lot 5 Improvements and
the Median Improvements, the “Improvements”). The Lots and the Median Tracts are depicted on
Exhibit A.

     C. The Riverpoint Project is subject that certain Declaration of Covenants, Conditions,
Easements and Restrictions for Riverpoint Business Park dated July 6, 2001, and recorded July 6,
2001, as Instrument No. 2001-0604763 in the Official Records of Maricopa County, Arizona, which is
subject to various supplements and more particularly described on Exhibit C (as amended and
supplemented the “Riverpoint CC&Rs”). Pursuant to various assignments described on Exhibit C,
1/3/5 LLC is the current declarant under the Riverpoint CC&Rs.

     D. The Lot 1 Improvements are subject to that certain Declaration of Parking Easement dated
October 19, 2005 and recorded October 21, 2005 as Instrument No. 2005-1585872 in the Official
Records of Maricopa County, Arizona (the “Lot 1 Parking Declaration”), granting to the owner of Lot
3 a non-exclusive easement over the parking facilities located on Lot 1. The Lot 2 Improvements
are subject to that certain Parking Lease and Easement Agreement dated and recorded June 29, 2004
as Instrument No. 2004-0744089 in the Official Records of Maricopa County, Arizona (the “Lot 2
Parking Declaration”), granting to the owner of Lots 4 and 8 of the Riverpoint Project a exclusive
easement over the surface parking area located on Lot 2.

     E. A portion of Lot 5 is subject to that certain Lease (No. 84051-001) dated January 1, 2004,
by and between 1/3/5 LLC, as landlord, and the City of Phoenix, as tenant (the “Lift Station
Lease”).

     F. Seller desires to sell and Buyer desires to purchase on the terms and conditions set forth
in this Agreement: (i) the Lots, the Median Tracts and the Improvements (collectively the “Real
Property”), (ii) any fixtures (including built in appliances) and cabling, located on the Real
Property; (iii) all rights, easements, tenements, hereditaments and appurtenances in any way
relating or incident to the ownership of the Real Property as well as all strips and gores
adjoining or adjacent to the Real Property and any rights to land lying in the bed of any street,
road, alley or right-of-way adjoining the Real Property; (iv) Seller’s rights as declarant under
the Riverpoint CC&Rs, (v) Seller’s rights as landlord under the Lift Station Lease, (vi) all
assignable warranties and guaranties (express or implied) issued to, and held in the name of,
Seller in connection with the Real Property; and (vii) all assignable permits, licenses, approvals
and authorizations issued by any governmental authority in favor of Seller in connection with the
Real Property (items (i) through (vii) being collectively referred to as the “Property”). The
Property does not include any personal property owned by Seller and located in or on the Real
Property, including, without limitation furniture (including partitions), equipment (other than
building systems affixed to the real property such as HVAC equipment and fire suppression
equipment), phone systems, audio visual equipment, antennas, surveillance cameras, kitchen
equipment, computer equipment

2

 

(including, but not limited to hard drives, servers, and monitors), appliances that are not
built in, copy machines and other office equipment, and art work.

     G. Buyer has agreed, as a condition to the Closing (as defined herein) to enter into a lease
for the Property in the form attached hereto as Exhibit B (the “Apollo Lease”) with Apollo Group
Inc., an Arizona corporation (“Apollo”).

     NOW, THEREFORE, in consideration of the foregoing and the mutual understandings set forth
herein, and for good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Buyer and Seller hereby agree to the foregoing recitals and as follows:

ARTICLE 1

AGREEMENT OF THE PARTIES

     1.1 Agreement. In consideration of the mutual promises and covenants set forth in
this Agreement, Seller agrees to sell and Buyer agrees to buy the Property on the terms and
conditions set forth in this Agreement.

     1.2 Effectiveness of Agreement; Opening Date. This Agreement shall be effective when
both Buyer and Seller have executed this Agreement. The “Opening Date” shall be the date on which
Escrow Agent receives the fully executed copy of this Agreement. Escrow Agent shall notify Buyer
and Seller in writing of the Opening Date.

ARTICLE 2

PURCHASE PRICE AND PAYMENT TERMS

     2.1 Purchase Price. The total purchase price for the Property is $170,000,000.00 (the
“Purchase Price”).

     2.2 Payment. On or before the Closing, Buyer agrees to deposit in escrow the Purchase
Price, as may be adjusted pursuant to this Agreement. All payments that Buyer is required to make
under this Section shall be made by cashier’s check payable to Escrow Agent or by wire transfer of
ready funds to the account of Escrow Agent.

     2.3 Disbursements. At Closing, all amounts paid by Buyer on account of the Purchase
Price, less any closing costs payable by Seller, shall be disbursed to Seller.

ARTICLE 3

ESCROW

     3.1 Establishment of Escrow; Escrow Instructions. Immediately upon execution of this
Agreement by both parties, Seller will deliver a fully executed copy of this Agreement to Escrow
Agent. An escrow for this transaction shall be established with Escrow Agent, and Escrow Agent is
engaged to administer the escrow. This Agreement constitutes escrow instructions to Escrow Agent.
Should Escrow Agent require the execution of its standard form

3

 

printed escrow instructions, Buyer and Seller agree to execute same; however, such
instructions shall be construed as applying only to Escrow Agent’s engagement, and if there are
conflicts between the terms of this Agreement and the terms of the printed escrow instructions, the
terms of this Agreement shall control.

     3.2 Acceptance; Escrow Agent Not a Party. By accepting this escrow, Escrow Agent
agrees be bound by the terms of this Agreement as they relate to the duties of Escrow Agent.
However, such agreement does not constitute Escrow Agent as a party to this Agreement and no
consent or approval from Escrow Agent shall be required to amend, extend, supplement, cancel or
otherwise modify this Agreement except to the extent any such action increases the duties of Escrow
Agent or exposes Escrow Agent to increased liability, in which such action shall not be binding on
Escrow Agent unless Escrow Agent has consented to the same in writing.

     3.3 Cancellation Charges. If the escrow fails to close because of Seller’s default,
Seller shall be liable for all customary escrow cancellation charges. If the escrow fails to close
because of Buyer’s default, Buyer shall be liable for all customary escrow cancellation charges.
If the escrow fails to close for any other reason, Seller and Buyer shall each be liable for
one-half of all customary escrow cancellation charges.

     3.4 IRS Reporting. Escrow Agent agrees to be the designated “reporting person” under
§6045(e) of the U.S. Internal Revenue Code of 1986 as amended (the “Code”) with respect to the real
estate transaction described in this Agreement and to prepare, file and deliver such information,
returns and statements as the U.S. Treasury Department may require by regulations or forms in
connection with such requirements, including Form 1099-B.

     3.5 Insured Closing Letter. If Escrow Agent does not issue its own title insurance
policies, but acts as an agent for an underwriter, as a condition to Escrow Agent acting as such,
Escrow Agent shall cause its underwriter to issue to the Parties a closing protection letter or
insured closing service in written form satisfactory to Seller and Buyer, on the Opening Date.

ARTICLE 4

INFORMATION TO BE PROVIDED TO BUYER

     4.1 Information and Other Items to Be Provided to Buyer. Prior to the Opening Date,
Seller has made available to Buyer the documents listed in Exhibit C attached hereto (the “Seller
Diligence Materials”) via a password protected, secure website. Seller makes no representation or
warranty as to the accuracy of the matters contained or depicted in the Seller Diligence Materials,
and Buyer shall make an independent verification of the accuracy of information in the Seller
Diligence Materials, all such information being furnished without any representation or warranty
whatsoever, except that Seller represents and warrants that the Seller Diligence Materials shall be
complete copies of the materials in Seller’s possession. If this Agreement is cancelled, all of
the Seller Diligence Materials will be returned to Seller or Buyer will certify as to their
destruction; if this Agreement is not cancelled, Buyer may retain such Seller Diligence Materials.

     4.2 Delivery of Information Obtained by Buyer. If this Agreement is cancelled by
either party for any reason other than a default by Seller, Buyer shall provide to Seller, upon

4

 

reimbursement by Seller to Buyer of any cost thereof paid by Buyer, copies of all feasibility
studies, reports, surveys, correspondence, or any other items obtained or created by or on behalf
of Buyer in connection with its investigations, inspections, and reviews of the Property (the
“Buyer Diligence Materials”). At the time of engaging third party preparers of Buyer Diligence
Materials, Buyer shall exercise good faith, commercially reasonable efforts to obtain the consent
from each such third party preparer of Buyer Diligence Materials to enable Buyer to supply such
Buyer Diligence Materials to Seller and enable Seller to rely on such Buyer Diligence Materials (or
have such Buyer Diligence Materials issued jointly to Seller and Buyer), but Buyer shall not be
obligated to incur any cost to obtain such consents or joint issuance. Buyer shall cooperate with
Seller, at no cost to the Buyer, to assist Seller to obtain reliance letters or other documents
from any consultant preparing any of the Buyer Diligence Materials to enable Seller to use and rely
on any such Buyer Diligence Materials.

ARTICLE 5

CONDITIONS TO CLOSING

     5.1 Conditions to Buyer’s Obligation to Close. Buyer’s obligations to close this
transaction are subject to the satisfaction of the following conditions on and as of the Closing,
unless an earlier date is specified:

     (a) Title Review. Buyer is satisfied with the status of title to the Real
Property as disclosed by the title commitment issued by Escrow Agent (the “Title
Commitment”) and the survey obtained by Buyer (the “Survey”), both of which are described on
Schedule 5.1. Notwithstanding anything to the contrary contained in this Section 5.1(a),
Seller shall be obligated to remove or otherwise satisfy (x) any voluntary monetary liens,
encumbrances or security interests placed against the Real Property by Seller, (y)
encumbrances that have been voluntarily placed against the Real Property by Seller after
March 1, 2011 without Buyer’s prior written consent and that will not otherwise be satisfied
on or before the Closing, or (z) exceptions that can be removed from the Title Commitment by
Seller’s delivery of the owner’s title affidavit attached hereto as Exhibit H (an “Owner’s
Affidavit”) (items (x), (y) and (z) collectively referred to as the “Seller’s Required
Removal Items”). The matters shown in the Title Commitment and the Survey, any matters
created by or through the acts of Buyer or its agents, and any other matters approved by
Buyer in writing, are referred to in this Agreement as the “Approved Title Exceptions.”

     (b) Escrow Agent Prepared to Close and Issue Title Policy. Escrow Agent is
prepared to close the transactions contemplated by this Agreement and Escrow Agent is
unconditionally prepared to issue the Title Policy in the form required by this Agreement.

     (c) Truthfulness of Representations. Seller’s representations and warranties
set forth in this Agreement (as modified by any Exception to Warranty Notice for which Buyer
has not terminated or been deemed to have terminated this Agreement under Section 7.1(e))
are true, complete and correct on and as of the Closing.

5

 

     (d) Full Compliance. Seller has fully performed all of its obligations to be
performed by Seller on or before Closing.

If any of the foregoing conditions is not fulfilled on or before the date by which such contingency
is to have been satisfied and such condition has not otherwise been waived by Buyer in writing,
Buyer may, in addition to any right or remedy expressly provided to Buyer under this Agreement, by
written notice to Seller given at any time prior to Closing, cancel this Agreement.

     5.2 Conditions to Seller’s Obligation to Close. Seller’s obligation to close this
transaction is subject to the satisfaction of the following conditions on and as of the Closing,
unless an earlier date is specified:

     (a) Truthfulness of Representations. Buyer’s representations and warranties
set forth in this Agreement are true, complete and correct on and as of the Closing.

     (b) Full Compliance. Buyer has fully performed all of its obligations to be
performed by Buyer on or before Closing.

If any of the foregoing conditions is not fulfilled on or before the date by which such contingency
is to have been satisfied and such condition has not otherwise been waived by Seller in writing,
Seller may, in addition to any right or remedy expressly provided to Seller under this Agreement,
by written notice to Buyer, cancel this Agreement.

ARTICLE 6

CLOSING

     6.1 Time of Closing. The Closing of this transaction and escrow (referred to in this
Agreement as the “Closing”) shall occur on or before 5:00 o’clock p.m. (local Arizona time) on
March 24, 2011 or such other date as may be mutually agreed to by the parties, except that if the
date of Closing would otherwise occur prior to a Condemnation Review Period, the date of Closing
shall automatically be extended to the day following expiration of the Condemnation Review Period.

     6.2 Closing Statements. Prior to Closing, Escrow Agent will prepare separate closing
settlement statements for Seller and Buyer, reflecting the various charges, prorations and credits
applicable to such party, as provided in this Agreement, and provide Seller with a copy of Seller’s
closing settlement statement and Buyer with a copy of Buyer’s closing settlement statement. Prior
to Closing, Seller shall have the right to review and approve its closing settlement statement to
insure that such settlement statement conforms to the terms of this Agreement, and the settlement
statement for Seller, as approved by Seller, is referred to in this Agreement as the “Seller
Closing Settlement Statement”. Prior to Closing, Buyer shall have the right to review and approve
its closing settlement statement to insure that such settlement statement conforms to the terms of
this Agreement, and the settlement statement for Buyer, as approved by Buyer, is referred to in
this Agreement as the “Buyer Closing Settlement Statement”.

6

 

     6.3 1/3/5 LLC Closing Documents. On or before the Closing, 1/3/5 LLC shall deposit
into escrow the following documents for delivery to Buyer at the Closing, each of which shall have
been duly executed by 1/3/5 LLC or Apollo, or its affiliates, as applicable, and, where
appropriate, acknowledged:

     (a) Deed. A special warranty deed (the “Lots 1/3/5 Deed”) conveying the Lot 1,
Lot 3, Lot 5, the Median Tracts, the Lot 1 Improvements, the Lot 3 Improvements, the Lot 5
Improvements and the Median Improvements to Buyer, subject only to the Approved Title
Exceptions for Lot 1, Lot 3, Lot 5 and the Median Tracts. The Lots 1/3/5 Deed will be in
the form attached hereto as Exhibit D;

     (b) APV. An affidavit of value as required by law;

     (c) Assignment. An assignment and assumption (the “Lots 1/3/5 Assignment”) in
which 1/3/5 LLC transfers to Buyer all of the right, title and interest of 1/3/5 LLC in (i)
the Lift Station Lease and (ii) assignable any warranties, guaranties, permits, licenses,
approvals and authorizations issued for or related to Lot 1, Lot 3 and Lot 5. The Lots 1/3/5
Assignment will be in the form attached hereto as Exhibit E;

     (d) CC&R Assignment. An assignment and assumption of the 1/3/5 LLC’s rights as
“declarant under the Riverpoint CC&Rs (the “CC&R Assignment”). The CC&R Assignment will be
in the form attached hereto as Exhibit F;

     (e) Certification. A certificate certifying that, as of the Closing, all of
the representations and warranties of 1/3/5 LLC set forth in Section 7.1(b) were true when
made and are true, correct and current as of, and as if made at, the Closing (as modified by
any Exception to Warranty Notice), and that all such representations and warranties will
survive the Closing;

     (f) FIRPTA Affidavit. A certification to Buyer and Escrow Agent, signed and
acknowledged by 1/3/5 LLC under penalties of perjury, certifying that 1/3/5 LLC is not a
nonresident alien, foreign corporation, foreign partnership, foreign trust, foreign estate,
or other foreign person within the meaning of Section 1445 and 7701 of the Internal Revenue
Code of 1986 and the related Treasury Regulations (the “Lots 1/3/5 FIRPTA Affidavit“). The
Lots 1/3/5 FIRPTA Affidavit will be in the form attached hereto as Exhibit G;

     (g) Apollo Lease. The Apollo Lease executed by Apollo, as tenant;

     (h) Memorandum of Lease. A Memorandum of Lease for the Apollo Lease executed
by Apollo, as tenant; and

     (i) Other Documents. Such other documents as may be necessary or appropriate
to transfer and convey all of Lot 1, Lot 3, Lot 5, the Median Tracts, the Lot 1
Improvements, the Lot 3 Improvements, the Lot 5 Improvements and the Median Improvements to
Buyer and to otherwise consummate this transaction in accordance with the terms of this
Agreement.

7

 

     6.4 2 LLC Closing Documents. On or before the Closing, 2 LLC shall deposit into
escrow the following documents for delivery to Buyer at the Closing, each of which shall have been
duly executed by 2 LLC or Apollo, or its affiliates, as applicable and, where appropriate,
acknowledged:

     (a) Deed. A special warranty deed (the “Lot 2 Deed”) conveying Lot 2 and the
Lot 2 Improvements to Buyer, subject only to the Approved Title Exceptions for Lot 2. The
Lot 2 Deed shall be in the form attached hereto as Exhibit D;

     (b) APV. An affidavit of value as required by law;

     (c) Assignment. An assignment and assumption (the “Lots 2 Assignment”) in
which 2 LLC, transfers to Buyer all of the right, title and interest of 2 LLC in any
assignable warranties, guaranties, permits, licenses, approvals and authorizations issued
for or related to Lot 2. The Lot 2 Assignment will be in the form attached hereto as Exhibit
E;

     (d) Certification. A certificate certifying that, as of the Closing, all of
the representations and warranties of 2 LLC set forth in Section 7.1(c) were true when made
and are true, correct and current as of, and as if made at, the Closing (as modified by any
Exception to Warranty Notice), and that all such representations and warranties will survive
the Closing;

     (e) FIRPTA Affidavit. A certification to Buyer and Escrow Agent, signed and
acknowledged by 2 LLC under penalties of perjury, certifying that 2 LLC is not a nonresident
alien, foreign corporation, foreign partnership, foreign trust, foreign estate, or other
foreign person within the meaning of Section 1445 and 7701 of the Internal Revenue Code of
1986 and the related Treasury Regulations (the “Lots 2 FIRPTA Affidavit“). The Lot 2 FIRPTA
Affidavit will be in the form attached hereto as Exhibit F;

     (f) Apollo Lease. The Apollo Lease executed by Apollo, as tenant;

     (g) Memorandum of Lease. A Memorandum of Lease for the Apollo Lease executed
by Apollo, as tenant; and

     (h) Other Documents. Such other documents as may be necessary or appropriate
to transfer and convey Lot 2 and the Lot 2 Improvements to Buyer and to otherwise consummate
this transaction in accordance with the terms of this Agreement.

     6.5 Buyer’s Closing Documents. On or before the Closing, Buyer shall deposit into
escrow the following documents for delivery to Seller at the Closing, each of which shall have been
duly executed and, where appropriate, acknowledged:

     (a) APV. Separate affidavits of value as required by law for the Lots 1/3/5
Deed and the Lot 2 Deed;

8

 

     (b) Assignment. Counterpart originals of the Lots 1/3/5 Assignment and the Lot
2 Assignment;

     (c) CC&R Assignment. A counterpart original of the CC&R Assignment; and

     (d) Certification. A certificate certifying that, as of the Closing, all of
the representations and warranties of Buyer set forth in Section 7.1(c) were true when made
and are true, correct and current as of, and as if made at, the Closing, and that all such
representations and warranties will survive the Closing;

     (e) Apollo Lease. The Apollo Lease;

     (f) Memorandum of Lease. A Memorandum of Lease for the Apollo Lease; and

     (g) Other Documents. Such other documents as may be necessary or appropriate
to consummate this transaction in accordance with the terms of this Agreement.

     6.6 Title Policy. Promptly following the Closing, Seller shall provide Buyer with an
extended owner’s policy of title insurance issued by Escrow Agent in the full amount of the
Purchase Price, effective as of the Closing, insuring Buyer that fee simple title to the Real
Property is vested in Buyer, subject only to the usual printed exceptions and exclusions contained
in such title insurance policies that cannot be removed by Seller’s delivery of the Owner’s
Affidavit and to the Approved Title Exceptions (the “Title Policy”). The premium for a standard
owner’s title insurance policy shall be paid by Seller at Closing. Buyer shall be responsible for
satisfying, at its cost and prior to Closing, Escrow Agent’s requirements for such additional
coverage or endorsements other than those requirements satisfied as a result of the Owner’s
Affidavit or those requirements for endorsements, if any, that Seller may agree in its sole
discretion to cause to be issued (“Seller Obtained Endorsements”). Buyer shall pay the difference
between the premium for an extended policy and any endorsements requested by Buyer (other than any
Seller Obtained Endorsements) and the premium for a standard coverage policy in the amount of the
Purchase Price.

     6.7 Closing Costs.

     (a) Escrow Charges. Upon the Closing, Seller and Buyer each agree to pay
one-half of the escrow charges.

     (b) Recording Fees. Fees for recording both the Lots 1/3/5 Deed and Lot 2 Deed
will be paid by Seller, as well as the fees to record the Memorandum of Lease and any
releases of any liens, judgments and other encumbrances that are to be released at Closing.
All other recording fees will be paid by Buyer.

     (c) Survey and Third Party Reports. Upon the Closing, Seller shall reimburse
Buyer for one half (1/2) of the actual out-of-pocket cost of the Survey and the following
third party reports to be obtained by Buyer with respect to the Property: (i) Phase I

9

 

environmental assessment, (ii) property condition report, (iii) roof report, (iv)
appraisal, and (v) zoning report (the “Buyer Reports”), not to exceed $30,450. The
remainder of the cost of the Survey and Buyer Reports and any other costs relating to
Buyer’s investigation of the Property shall be paid by Buyer. Except as expressly provided,
herein Buyer and Seller each agree to pay their own respective costs for any all consultants
and attorneys.

     (d) Taxes and Assessments. There will be no proration of real property taxes
or assessments related to the Real Property. Prior to the Closing, Seller shall pay, prior
to delinquency, any real property taxes and other assessments related to the Real Property.
After the Closing, Apollo, as tenant under the Apollo Lease, shall pay, prior to
delinquency, any real property taxes and other assessments related to the Real Property.

     (e) Rents. Rents and other revenue received under the Lift Station Lease will
not be prorated at Closing and 1/3/5 LLC and/or Apollo will be entitled to retain any such
rents and revenues.

     (f) Legal Fees. Subject to Section 11.4, Seller shall pay its own legal fees
and expenses and Buyer shall pay its own legal fees and expenses with respect to this
transaction.

     (g) Consents. At Closing, Buyer and Seller shall each pay one half (1/2) of
any costs and expenses necessary to obtain any consents to assign to Buyer any warranties
and guaranties held in the name of Seller or to have any such warranties and guaranties
reissued in Buyer’s name.

     (h) Miscellaneous Closing Costs. Any other closing costs not provided for
above or elsewhere in this Agreement shall be paid by Seller.

     (i) Method of Payment. All closing costs and commissions payable by Seller
shall be deducted from Seller’s proceeds at the Closing. On or before the Closing, Buyer
shall deposit with Escrow Agent cash in an amount sufficient to pay all closing costs
payable by Buyer.

     6.8 Payments and Disbursements to Be Handled through the Escrow. The various charges,
credits and prorations contemplated by this Agreement will be handled by Escrow Agent through the
escrow by appropriate charges and credits to Buyer and Seller and will be reflected in the Seller
Closing Settlement Statement or the Buyer Closing Settlement Statement, as appropriate. All
amounts payable pursuant to this Agreement will be paid to Escrow Agent for disposition through the
escrow. Escrow Agent is authorized to make all disbursements to the parties and to third parties
contemplated by this Agreement from funds deposited for those purposes, as necessary or appropriate
to close this transaction and as set forth in the Seller Closing Settlement Statement and the Buyer
Closing Settlement Statement.

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ARTICLE 7

SELLER’S REPRESENTATIONS AND WARRANTIES

     7.1 Seller’s Representations.

     (a) Nature of Seller’s Representations. Each of the representations and
warranties in Section 7.1(b) constitutes a material part of the consideration to Buyer and
Buyer is relying on the correctness and completeness of these representations and warranties
in entering into this transaction. Each of the representations and warranties in Section
7.1(b) was true and accurate as of March 1, 2011, will be true and accurate as of the
Closing and will survive the Closing, regardless of any investigation or inspection by
Buyer.

     (b) 1/3/5 LLC Representations and Warranties. 1/3/5 LLC represents and
warrants to Buyer as follows:

     (i) Organizational Status. 1/3/5 LLC is a limited liability company
duly organized, validly existing and in good standing under the laws of the State of
Arizona, is qualified to do business in the State of Arizona, and has full power and
authority to enter into and to perform its obligations under this Agreement. The
persons executing this Agreement on behalf of 1/3/5 LLC have full power and
authority to do so and to perform every act and to execute and deliver every
document and instrument necessary or appropriate to consummate the transactions
contemplated by this Agreement.

     (ii) Entity Action. All entity action on the part of 1/3/5 LLC and its
constituents which is required for the execution, delivery and performance by 1/3/5
LLC of this Agreement and each of the documents and agreements to be delivered by
1/3/5 LLC at the Closing has been duly and effectively taken.

     (iii) Enforceable Nature of Agreement. This Agreement and each of the
documents and agreements to be delivered by 1/3/5 LLC at the Closing, constitute
legal, valid and binding obligations of 1/3/5 LLC, enforceable against 1/3/5 LLC in
accordance with their respective terms, except to the extent that enforceability may
be limited by applicable bankruptcy, insolvency, fraudulent conveyance, moratorium,
or similar laws affecting the enforcement of creditors’ rights generally, and
subject, as to enforceability, to general principles of equity, regardless of
whether enforcement is sought in a court of law or equity.

     (iv) Violations; Consents; Defaults. Neither the execution of this
Agreement nor the performance by 1/3/5 LLC of its obligations under this Agreement
will result in any breach or violation of (i) the terms of any law, rule, ordinance,
or regulation; or (ii) any decree, judgment or order to which 1/3/5 LLC or any
constituent member of 1/3/5 LLC is a party now in effect from any court or
governmental body. There are no consents, waivers, authorizations or approvals from
any third party necessary to be obtained by 1/3/5 LLC in order to carry out the
transactions contemplated by this Agreement. The execution and delivery of

11

 

this Agreement and performance by 1/3/5 LLC of its obligations under this
Agreement will not conflict with or result in a breach or default (or constitute an
event which, with the giving of notice or the passage of time, or both, would
constitute a default) under 1/3/5 LLC’s organizational documents or any indenture,
mortgage, lease, agreement, or other instrument to which 1/3/5 LLC is a party or by
which 1/3/5 LLC or any of its assets may be bound. The execution and delivery of
this Agreement and performance by 1/3/5 LLC of its obligations under this Agreement
will not result in the creation of any new, or the acceleration of any existing,
lien, charge, or encumbrance upon Lot 1, Lot 3 and Lot 5 or the Median Tracts.

     (v) OFAC. Neither 1/3/5 LLC nor Apollo is (a) currently identified on
the Specially Designated Nationals and Blocked Persons List maintained by the Office
of Foreign Assets Control, Department of the Treasury (“OFAC”) and/or on any other
similar list maintained by OFAC pursuant to any authorizing statute, executive order
or regulation (collectively, the “List”), and (b) a person or entity with whom a
citizen of the United States is prohibited to engage in transactions by any trade
embargo, economic sanction, or other prohibition of United States law, regulation,
or Executive Order of the President of the United States. None of the funds or
other assets of 1/3/5 LLC constitute property of, or are beneficially owned,
directly or indirectly, by any Embargoed Person, and the members and managers of
1/3/5 LLC are not Embargoed Persons. The term “Embargoed Person” means any person,
entity or government subject to trade restrictions under the International Emergency
Economic Powers Act, 50 U.S.C. §1701 et seq., The Trading with the Enemy Act, 50
U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated
thereunder.

     (vi) Litigation. Neither 1/3/5 LLC nor any of its constituent members
is a party to any pending action, suit, proceeding or investigation, at law or in
equity or otherwise, in, for or by any court or governmental board, commission,
agency, department or officer arising from or relating to this transaction, Lot 1,
Lot 3 and Lot 5 or the Median Tracts or to the past or present operations and
activities of 1/3/5 LLC upon or relating to Lot 1, Lot 3 and Lot 5 and the Median
Tracts. To 1/3/5 LLC’s knowledge, no litigation, administrative or other
proceeding, or order or judgment is pending, outstanding, or threatened against or
relating to any portion of Lot 1, Lot 3 and Lot 5 and the Median Tracts or which
could affect the performance by 1/3/5 LLC of any of its obligations under this
Agreement.

     (vii) Governmental Restrictions. To 1/3/5 LLC’s knowledge, 1/3/5 LLC
has not received any notifications, restrictions, or stipulations from the United
States of America, the State of Arizona, the County of Maricopa, the City of
Phoenix, or any other governmental authority requiring any work to be done on Lot 1,
Lot 3 and Lot 5 and the Median Tracts or threatening the use of Lot 1, Lot 3 and Lot
5 and the Median Tracts or indicating that Lot 1, Lot 3, Lot 5 or the Median Tracts
is in violation of any applicable laws or regulations. Except as set forth in the
Condemnation Letter described on Exhibit C, there are no pending or

12

 

threatened condemnation proceedings affecting any portion of Lot 1, Lot 3 and
Lot 5 and the Median Tracts.

     (viii) Environmental Matters. Except as set forth in the Environmental
Documents described on Exhibit C:

          (A) To 1/3/5 LLC’s knowledge, Lot 1, Lot 3 and Lot 5 and the Median
Tracts are free from Hazardous Substances (other than those commonly used in
connection with the operation of an office building and related uses), and
are not now in violation of any Environmental Law.

          (B) To 1/3/5 LLC’s knowledge, 1/3/5 LLC has received no written
warning, notice of violation, administrative complaint, judicial complaint,
or other formal or informal notice alleging that conditions on Lot 1, Lot 3
and Lot 5 and the Median Tracts are in violation of any Environmental Law,
or informing 1/3/5 LLC that Lot 1, Lot 3 and Lot 5 and the Median Tracts are
subject to investigation or inquiry regarding the presence of Hazardous
Substances on or about Lot 1, Lot 3 and Lot 5 and the Median Tracts or the
potential violation of any Environmental Law.

     (ix) Mechanics’ Liens. Any work which has been performed on or about
Lot 1, Lot 3, Lot 5 or the Median Tracts or the Lot 1 Improvements, the Lot 3
Improvements, or the Lot 5 Improvements within six (6) months prior to the date of
execution of this Agreement that could give rise to any mechanics’ or materialmen’s
liens will be paid for by Seller prior to the Closing or in the ordinary course of
its business.

     (x) Other Agreements. 1/3/5 LLC has not entered into and there is not
existing any other agreement, written or oral, under which 1/3/5 LLC is or could
become obligated to sell Lot 1, Lot 3, Lot 5 or the Median Tracts, or any portion
thereof, to a third party.

     (xi) Zoning Change. 1/3/5 LLC has not taken any action before any
governmental authority having jurisdiction thereover, the object of which would be
to change the zoning of or other land-use limitations, upon Lot 1, Lot 3, Lot 5 or
the Median Tracts, or any portion thereof which are in effect on March 1, 2011, or
its potential use, and, to 1/3/5 LLC’s knowledge, there are no pending proceedings,
the object of which would be to change the zoning in effect on March 1, 2011 or
other land-use limitations upon Lot 1, Lot 3, Lot 5 or the Median Tracts.

     (c) 2 LLC Representations and Warranties. 2 LLC represents and warrants to
Buyer as follows:

     (i) Organizational Status. 2 LLC is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of
Arizona, is qualified to do business in the State of Arizona, and has full power and
authority to enter into and to perform its obligations under this Agreement.

13

 

The persons executing this Agreement on behalf of 2 LLC have full power and
authority to do so and to perform every act and to execute and deliver every
document and instrument necessary or appropriate to consummate the transactions
contemplated by this Agreement.

     (ii) Entity Action. All entity action on the part of 2 LLC and its
constituents which is required for the execution, delivery and performance by 2 LLC
of this Agreement and each of the documents and agreements to be delivered by 2 LLC
at the Closing has been duly and effectively taken.

     (iii) Enforceable Nature of Agreement. This Agreement and each of the
documents and agreements to be delivered by 2 LLC at the Closing, constitute legal,
valid and binding obligations of 2 LLC, enforceable against 2 LLC in accordance with
their respective terms, except to the extent that enforceability may be limited by
applicable bankruptcy, insolvency, fraudulent conveyance, moratorium, or similar
laws affecting the enforcement of creditors’ rights generally, and subject, as to
enforceability, to general principles of equity, regardless of whether enforcement
is sought in a court of law or equity.

     (iv) Violations; Consents; Defaults. Neither the execution of this
Agreement nor the performance by 2 LLC of its obligations under this Agreement will
result in any breach or violation of (i) the terms of any law, rule, ordinance, or
regulation; or (ii) any decree, judgment or order to which 2 LLC or any constituent
member of 2 LLC is a party now in effect from any court or governmental body. There
are no consents, waivers, authorizations or approvals from any third party necessary
to be obtained by 2 LLC in order to carry out the transactions contemplated by this
Agreement. The execution and delivery of this Agreement and performance by 2 LLC of
its obligations under this Agreement will not conflict with or result in a breach or
default (or constitute an event which, with the giving of notice or the passage of
time, or both, would constitute a default) under 2 LLC’s organizational documents or
any indenture, mortgage, lease, agreement, or other instrument to which 2 LLC is a
party or by which 2 LLC or any of its assets may be bound. The execution and
delivery of this Agreement and performance by 2 LLC of its obligations under this
Agreement will not result in the creation of any new, or the acceleration of any
existing, lien, charge, or encumbrance upon Lot 2.

     (v) OFAC. Neither 2 LLC nor Apollo is (a) currently identified on the
Specially Designated Nationals and Blocked Persons List maintained by OFAC and/or on
any other similar List, and (b) a person or entity with whom a citizen of the United
States is prohibited to engage in transactions by any trade embargo, economic
sanction, or other prohibition of United States law, regulation, or Executive Order
of the President of the United States. None of the funds or other assets of 1/3/5
LLC constitute property of, or are beneficially owned, directly or indirectly, by
any Embargoed Person, and the members and managers of 1/3/5 LLC are not Embargoed
Persons.

14

 

     (vi) Litigation. Neither 2 LLC nor any of its constituent members is a
party to any pending action, suit, proceeding or investigation, at law or in equity
or otherwise, in, for or by any court or governmental board, commission, agency,
department or officer arising from or relating to this transaction, Lot 2 or to the
past or present operations and activities of 2 LLC upon or relating to Lot 2. To 2
LLC’s knowledge, no litigation, administrative or other proceeding, or order or
judgment is pending, outstanding, or threatened against or relating to any portion
of Lot 2 or which could affect the performance by 2 LLC of any of its obligations
under this Agreement.

     (vii) Governmental Restrictions. To 2 LLC’s knowledge, 2 LLC has not
received any notifications, restrictions, or stipulations from the United States of
America, the State of Arizona, the County of Maricopa, the City of Phoenix, or any
other governmental authority requiring any work to be done on Lot 2 or threatening
the use of Lot 2 or indicating that Lot 2 is in violation of any applicable laws or
regulations. Except as set forth in the Condemnation Letter described on Exhibit C,
there are no pending or threatened condemnation proceedings affecting any portion of
Lot 2.

     (viii) Environmental Matters. Except as set forth in the Environmental
Documents described on Exhibit C:

          (A) To 2 LLC’s knowledge, Lot 2 is free from Hazardous Substances
(other than those commonly used in connection with the operation of a
surface parking lot), and is not now in violation of any Environmental Law.

          (B) To 2 LLC’s knowledge, 2 LLC has received no written warning, notice
of violation, administrative complaint, judicial complaint, or other formal
or informal notice alleging that conditions on Lot 2 is in violation of any
Environmental Law, or informing 2 LLC that Lot 2 is subject to investigation
or inquiry regarding the presence of Hazardous Substances on or about Lot 2
or the potential violation of any Environmental Law.

     (ix) Mechanics’ Liens. Any work which has been performed on or about
Lot 2 or the Lot 2 Improvements within six (6) months prior to the date of execution
of this Agreement that could give rise to any mechanics’ or materialmen’s liens will
be paid for by Seller prior to the Closing or in the ordinary course of its
business.

     (x) Other Agreements. 2 LLC has not entered into and there is not
existing any other agreement, written or oral, under which 2 LLC is or could become
obligated to sell Lot 2, or any portion thereof, to a third party.

     (xi) Zoning Change. 2 LLC has not taken any action before any
governmental authority having jurisdiction thereover, the object of which would

15

 

be to change the zoning of or other land-use limitations, upon Lot 2 which are
in effect on March 1, 2011, or any portion thereof, or its potential use, and, to 2
LLC’s knowledge, there are no pending proceedings, the object of which would be to
change the zoning in effect on March 1, 2011 or other land-use limitations upon Lot
2.

     (d) Knowledge. For purposes of Sections 7.1(b) and 7.1(c), the term
“knowledge” shall mean and be limited to the actual (as distinguished from implied, imputed
or constructive) knowledge of Robert Burney (an employee of Seller), without such
individuals having any obligation to make independent inquiry or investigation. In no event
shall Mr. Burney be personally liable for any representation or warranty contained herein.
Seller represents and warrants that Mr. Burney is the person having responsibility for
overseeing management of the Property and has comprehensive knowledge of the matters set
forth in Sections 7.1(b) and 7.1(c).

     (e) Exception to Warranty Notice. If at any time prior to the Closing, Seller
learns of any facts, circumstances or omissions of which Seller did not have knowledge on
March 1, 2011, and which would render any of Seller’s representations and warranties false
or materially misleading, then Seller shall promptly notify Buyer in writing of all such
facts, circumstances and omissions (an “Exception to Warranty Notice”). Seller, without
obligation or liability, may attempt to rectify such matters, but if Buyer is not reasonably
satisfied with such efforts, and if such facts or circumstances will have a material adverse
effect on the use, operation, or economics of the Property, in Buyer’s reasonable judgment,
Buyer shall, have the right to elect to either: (i) terminate this Agreement within five (5)
Business Days following receipt of an Exception to Warranty Notice; or (ii) waive any claim
against Seller arising out of or related to the information disclosed in the Exception to
Warranty Notice and proceed with the Closing, in which case the representation or warranty
shall be deemed modified as necessary to conform with the additional information disclosed
to Buyer in the Exception to Warranty Notice. Except as set forth in Section 10.2(b)(iii),
Buyer’s right to terminate this Agreement shall be Buyer’s sole remedy in the event it
receives an Exception to Warranty Notice, and if Buyer fails to timely elect in writing to
waive any claim against Seller and proceed with the Closing in accordance with clause (ii)
above Buyer shall be deemed to have elected to terminate this Agreement pursuant to the
terms of this provision.

     (f) Buyer Knowledge. Notwithstanding anything contained herein to the
contrary, if prior to Closing Buyer obtains actual (as distinguished from implied, imputed
or constructive) knowledge of any information that renders a representation or warranty of
Seller untrue and Buyer nevertheless elects to proceed with Closing, then Buyer will be
deemed to have waived any claim against Seller arising out of or related to such information
and the representation or warranty shall be deemed modified as necessary to conform with the
additional information.

     7.2 Buyer’s Representations.

     (a) Nature of Buyer’s Representations. Each of the representations and
warranties in Section 7.2 constitutes a material part of the consideration to Seller and

16

 

Seller is relying on the correctness and completeness of these representations and
warranties in entering into this transaction. Each of the representations and warranties in
Section 7.2 will be true and accurate as of the Closing and will survive the Closing.

     (b) Representations and Warranties as to Buyer and the Transaction. Buyer
represents and warrants to Seller as follows:

     (i) Organizational Status. Buyer is a limited liability company duly
organized, validly existing and in good standing under the laws of its state of
formation, is qualified to do business in the State of Arizona, and has full power
and authority to enter into and to perform its obligations under this Agreement.
The persons executing this Agreement on behalf of Buyer have full power and
authority to do so and to perform every act and to execute and deliver every
document and instrument necessary or appropriate to consummate the transactions
contemplated by this Agreement.

     (ii) Entity Action. All entity action on the part of Buyer and its
constituents which is required for the execution, delivery and performance by Buyer
of this Agreement and each of the documents and agreements to be delivered by Buyer
at the Closing has been duly and effectively taken.

     (iii) Enforceable Nature of Agreement. This Agreement and each of the
documents and agreements to be delivered by Buyer at the Closing, constitute legal,
valid and binding obligations of Buyer, enforceable against Buyer in accordance with
their respective terms, except to the extent that enforceability may be limited by
applicable bankruptcy, insolvency, fraudulent conveyance, moratorium, or similar
laws affecting the enforcement of creditors’ rights generally, and subject, as to
enforceability, to general principles of equity, regardless of whether enforcement
is sought in a court of law or equity.

     (iv) Violations; Consents; Defaults. Neither the execution of this
Agreement nor the performance by Buyer of its obligations under this Agreement will
result in any breach or violation of (i) the terms of any law, rule, ordinance, or
regulation; or (ii) any decree, judgment or order to which Buyer or any constituent
member of Buyer is a party now in effect from any court or governmental body. There
are no consents, waivers, authorizations or approvals from any third party necessary
to be obtained by Buyer in order to carry out the transactions contemplated by this
Agreement. The execution and delivery of this Agreement and performance by Buyer of
its obligations under this Agreement will not conflict with or result in a breach or
default (or constitute an event which, with the giving of notice or the passage of
time, or both, would constitute a default) under Buyer’s organizational documents.

     (v) OFAC. Buyer is not (a) currently identified on the Specially
Designated Nationals and Blocked Persons List maintained by OFAC and/or on any other
similar List, and (b) a person or entity with whom a citizen of the United States is
prohibited to engage in transactions by any trade embargo,

17

 

economic sanction, or other prohibition of United States law, regulation, or
Executive Order of the President of the United States. The members and managers of
Buyer are not Embargoed Persons and to Buyer’s actual knowledge without any duty of
inquiry, none of the funds or other assets of Buyer constitute property of, or are
beneficially owned, directly or indirectly, by any Embargoed Person.

     (vi) Litigation. Neither Buyer nor any of its constituent members is a
party to any pending action, suit, proceeding or investigation, at law or in equity
or otherwise, in, for or by any court or governmental board, commission, agency,
department or officer arising from or relating to this transaction.

     7.3 Buyer Release.

     (a) Release; “As Is” Nature of Transaction. Except for the express warranties,
representations and indemnification provisions set forth in this Agreement or in any closing
documents delivered by Seller and the obligations of Apollo under the Apollo Lease:

     (i) Seller and Seller’s Related Parties (other than Apollo in its capacity as
lessee under the Lease) are released from all responsibility and liability regarding
the Property and the Riverpoint Project, including without limitation the condition,
valuation or utility of the Property, or its suitability for any purpose whatsoever;
title and survey matters with respect to the Real Property; and any responsibility
or liability with respect to the presence in the soil, air, structures, and surface
and subsurface waters, of Hazardous Substances; provided that (x) Buyer does not
release Apollo for any Claims arising under the Lease, and (y) Buyer shall have the
right to defend any governmental or third party environmental or other Claim
asserted against Buyer after Closing with respect to any environmental or other
matter occurring prior to Closing by alleging that Seller (and not Buyer) is liable
for such Claim and by asserting a cross-claim or counterclaim against Seller in
response to any Claim asserted against Buyer (but not to assert its own Claim
against Seller for such matters); and

     (ii) Buyer expressly acknowledges that Buyer has not relied on any warranties,
promises, understandings or representations, express or implied, oral or written, of
Seller or any of Seller’s Related Parties or representatives, relating to the
Property or any other aspect of the contemplated transaction and that Buyer is
acquiring the Property in its present condition and state of repair, “AS IS” and
“WHERE IS”, with all defects and liabilities, latent or apparent.

     (b) Buyer’s Due Diligence; Waivers. Buyer has inspected and investigated all
aspects of the Property as Buyer deems necessary or appropriate to Buyer’s complete
satisfaction and has observed the physical characteristics and existing conditions of the
Property, the structural character, soundness and state of repair of the Improvements on the
Real Property, the condition and state of repair of all equipment, fixtures, equipment, and
appliances constituting part of the Property, and the operations on the Riverpoint

18

 

Project and on adjacent areas. Except as expressly set forth in this Agreement or any
closing document executed pursuant to this Agreement (including, without limitation, the
Apollo Lease), Buyer waives any and all objections to, complaints about, or Claims regarding
the Property, including without limitation the Real Property and its physical
characteristics and existing conditions (including, without limitation, objections to,
complaints about, or Claims regarding subsurface soil and water conditions, solid and
hazardous waste and hazardous substances, and endangered or protected plant or animal
species on, under or adjacent to the Real Property (including federal, state or common law
based actions and any private right of action under state and federal law, including, but
not limited to, the Environmental Laws)); provided that (x) Buyer does not release Apollo
for any Claims arising under the Lease, and (y) Buyer shall have the right to defend any
governmental or third party environmental or other Claim asserted against Buyer after
Closing with respect to any environmental or other matter occurring prior to Closing by
alleging that Seller (and not Buyer) is liable for such Claim and by asserting a cross-claim
or counterclaim against Seller in response to any Claim asserted against Buyer (but not to
assert its own Claim against Seller for such matters). As between Buyer and Seller, Buyer
further assumes the risk of changes in applicable laws relating to past, present and future
environmental conditions on the Real Property and, except as arising from the express
warranties and representations of Seller, the risk that adverse physical characteristics and
conditions, including, without limitation, the presence of Hazardous Substances or other
contaminants, may not have been revealed by its investigation.

     (c) Acknowledgments. Buyer agrees that the matters released pursuant to this
Section 7.3 are not limited to matters which are known or disclosed. Buyer acknowledges
that factual matters now unknown to it may have given or may hereafter give rise to causes
of action, claims, demands, controversies, damages, costs, losses or expenses which are
presently unknown, unanticipated and unsuspected, and Buyer further acknowledges that the
release contained in this Section has been negotiated and agreed upon in light of the
foregoing. Buyer expressly waives any provision of statutory or decisional law to the
effect that a general release does not extend to Claims which the releasing party does not
know or suspect to exist in such party’s favor at the time of executing the release, which,
if known by such party, would have materially affected such party’s settlement with the
released parties

ARTICLE 8

ADDITIONAL COVENANTS

     8.1 Possession. Subject to the Apollo Lease and the Lift Station Lease, possession of
the Property shall be delivered to Buyer upon the Closing.

     8.2 Additional Representations and Covenants.

     (a) Taxes and Assessments. Seller shall pay prior to delinquency all real
estate taxes and assessments secured by a lien on the Property.

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     (b) Covenant not to Commit Waste. Since March 1, 2011 Seller has not committed
and prior to Closing will not commit any waste on the Property.

     (c) Maintenance. Since March 1, 2011 Seller has maintained (and until the
Closing will maintain) the Property (or cause it to be maintained) in full compliance with
all applicable governmental laws, rules and regulations, including making (or causing to be
made) all necessary repairs and replacements thereto. Subject to Section 8.5, Seller shall
deliver the Property at the Closing in substantially the same condition it was in on March
1, 2011, reasonable wear and tear excepted.

     (d) Insurance. Until the Closing Seller will maintain property insurance for
the structures located on the Property for the full replacement cost of such structures.

     (e) No Encumbrances. Seller shall not place any mortgage or any other
encumbrance, easement, covenant, condition, right-of-way or restriction on the Property or
voluntarily take any action that materially and adversely affects title to the Property as
same existed on March 1, 2011 unless the same can be removed prior to Closing.

     (f) Notices. Seller will deliver to Buyer, promptly after receipt by Seller, a
copy of all written notices of any violations issued to Seller by governmental authorities
with respect to the Property and any other material notices received from any governmental
authority with respect to the Property after March 1, 2011 and prior to Closing.

     (g) Settlement. Prior to Closing Seller shall not settle any condemnation
claim or insurance casualty claim made after March 1, 2011 without Buyer’s prior written
consent not to be unreasonably withheld or delayed.

     (h) Offers. While this Agreement is in effect, neither Seller nor any agent,
partner or subsidiary or affiliate of Seller shall be permitted to accept or entertain
offers, negotiate, solicit interest or otherwise enter into discussions involving the sale,
joint venture, financing, disposition or other transaction involving the Property. Nothing
in this Section shall prohibit Seller from receiving any unsolicited offer, but Seller shall
not accept or negotiate such offer prior to any default by Buyer or termination of this
Agreement.

     8.3 Estoppels. Seller has requested estoppel certificates in a form reasonably
requested by Buyer from all other parties that are subject to the Riverpoint CC&Rs addressed or
certified to Buyer and stating that the Riverpoint CC&Rs are in full force and effect and have not
been modified (except as disclosed in such estoppel certificate) and, to the best knowledge of the
party giving the estoppel, the Declarant is not in default under the Riverpoint CC&Rs and all
amounts, if any, owing under the Riverpoint CC&Rs have been paid in full. Seller shall use
commercially reasonable efforts to obtain signed estoppel certificates back from the other parties,
but shall not be obligated to pay for or otherwise incur any costs, and receipt of executed
estoppel certificates from the other parties shall not be a condition of the Closing. If the
estoppel certificates are not obtained prior to Closing, Seller will, at Buyer’s request, cooperate
with Buyer to obtain such estoppel certificates post closing.

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     8.4 Condemnation. If, prior to Closing, all or any portion of the Property is taken
by or under threat of condemnation or eminent domain (including by deed in lieu of condemnation) or
Seller receives written notice (other than the Condemnation Letter) from any governmental agency or
other person with the power of eminent domain threatening the taking of all or any portion of the
Property (any such event being referred to as a “Condemnation Event”), Seller shall promptly notify
Buyer of the Condemnation Event and whether Apollo would terminate the Apollo Lease as a result of
the Condemnation Event (if the Closing were to occur) (the “Condemnation Notice”) and Buyer may, at
its election, cancel this Agreement by giving written notice of cancellation to Seller and Escrow
Agent on or before the later of (i) the date scheduled for Closing or (ii) five (5) Business Days
following Buyer’s receipt of the Condemnation Notice (the “Condemnation Review Period”). Unless
Buyer gives written notice of cancellation prior to the expiration of the Condemnation Review
Period, then Buyer will be deemed to have elected not to cancel the Agreement under this provision.
If Buyer elects (or is deemed to have elected) to close the escrow notwithstanding the occurrence
of a Condemnation Event, all awards or payments made to which Seller is entitled for such taking
shall be assigned to Buyer, and Buyer shall proceed to close the escrow and pay the entire Purchase
Price.

     8.5 Risk of Loss. Except as provided in this Section and except as otherwise provided
in the Access Agreement, the risk of loss or damage to the Property and all liability to third
persons until the Closing shall be borne by Seller. In case of loss or damage to the Property
prior to the Closing, Seller will give prompt written notice thereof to Buyer and if the cost of
restoration for each affected structure is estimated not to exceed twenty percent (20%) of the
replacement value of such structure, Buyer shall proceed with the Closing, in which event Buyer
will pay the full Purchase Price for the Property, and, at the Closing, all of the insurance
proceeds payable to Seller with respect to the loss and all rights with respect to the loss under
the insurance policy covering the loss will be assigned by Seller to Apollo and any moneys received
by Seller at any time in connection with the loss will be paid to Apollo and Apollo shall be
required to restore the Property following the Closing in accordance with the Apollo Lease. If,
however, the cost of restoration of any affected structure is estimated to exceed twenty percent
(20%) of the replacement value of such structure, then Buyer, at Buyer’s option, may (i) cancel
this Agreement by giving written notice to Seller and Escrow Agent, or (ii) proceed to Closing, in
which case, the provisions of the preceding sentence shall apply.

     8.6 Conditions to Assignment.

     (a) Buyer acknowledges that certain licenses issued to Seller by the Salt River Project
Agricultural Improvement and Power District (“SRP”) granting to Seller the right to cross
certain canals bisecting the Real Property are not assignable by their terms. Accordingly,
following the Closing, Seller (at no cost to Buyer) will obtain new licenses from SRP in the
name of Apollo. Following termination of the Apollo Lease, Buyer shall be responsible for
obtaining new licenses in its own name.

     (b) Seller and Buyer shall cooperate to satisfy any conditions to the assignment to
Buyer of any warranties, guaranties, permits, licenses, approvals and authorizations issued
by any governmental authority in favor of Seller in connection with the Real Property
(including, but not limited to the Roof Guarantees described on Exhibit

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C), provided that Seller shall not be obligated to pay any fee in excess of the amount
payable under Section 6.7(g) of this Agreement.

     (c) The provisions of this Section 8.6 shall survive the Closing.

ARTICLE 9

BROKERAGE

     9.1 Brokerage and Advisor Fees. Buyer warrants that Buyer has not dealt with any
broker in connection with this transaction other than Seller’s Brokers. Seller warrants that
Seller has not dealt with any broker in connection with this transaction other than William J.
Swirtz (“Seller’s Broker”). Seller will be responsible for any fee payable to Seller’s Broker and
Seller’s financial advisor, Banc of America Securities LLC (“Financial Advisor”) on account of this
transaction pursuant and shall indemnify, defend, and hold harmless Buyer and Buyer’s Related
Parties for, from and against any and all Claims in connection with any such commission or fee. If
any other person (other than Seller’s Broker or Financial Advisor) shall assert a claim to a
finder’s fee, brokerage commission or other compensation on account of alleged employment as a
finder, broker or advisor, or performance of services as a finder, broker or advisor in connection
with this transaction, the party under whom the finder, broker or advisor is claiming shall
indemnify, defend, and hold harmless the other party and such party’s Related Parties for, from and
against any and all Claims in connection with such Claim or any action or proceeding brought on
such Claim.

ARTICLE 10

DEFAULTS AND REMEDIES

     10.1 Defaults by Buyer.

     (a) Buyer’s Default. The occurrence of any of the following will constitute a
default by Buyer under this Agreement:

     (i) If, by the time set for the Closing, the conditions to Buyer’s obligation
to close set forth in Section 5.1 have been satisfied and Buyer has failed to pay
the Purchase Price into escrow, to deposit into escrow the documents and other items
to be deposited by Buyer in escrow by the time set for Closing, or to perform any
other obligation of Buyer to be performed by the time set for Closing;

     (ii) If Buyer fails to observe or perform any of the covenants or agreements
contained in this Agreement to be observed or performed by Buyer following Closing,
but such failure, if of a type that can be cured or corrected by Buyer, will not be
a default unless such failure continues for 15 days after written notice of breach
is given by Seller to Buyer except that if such failure is of such a character as to
require more than 15 days to correct, Buyer will not be in default if Buyer
commences actions to correct such failure within the 15-day period and thereafter,
using reasonable diligence, cures such failure; or

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     (iii) If any of Buyer’s representations or warranties were not true and correct
in any material respect on the Closing Date.

     (b) Seller’s Remedies.

     (i) If Buyer is in default under Section 10.1(a)(i) of this Agreement, Seller’s
sole and exclusive remedy with respect to such default shall be to cancel this
Agreement and the escrow, such cancellation to be effective immediately upon Seller
giving written notice of cancellation to Buyer and Escrow Agent. Upon such
cancellation, Buyer shall (x) reimburse Seller for its actual out-of-pocket costs
and expenses in connection with the Property and the transactions contemplated by
this Agreement, but not to exceed $500,000, and (y) pay Seller a break-up fee equal
to the sum of $1,500,000, which break-up fee shall be in addition to the amounts
required to be paid under clause (x).

     (ii) If Buyer is in default with respect to any of its indemnity obligations
under this Agreement or any post-closing obligation, Seller shall have all rights
and remedies at law or in equity in connection with such default.

     (iii) If, prior to Closing, Seller discovers that Buyer is in default under
Section 10.1(a)(iii) of this Agreement, Seller may either (x) elect to waive such
default and proceed to Closing or (y) elect to cancel this Agreement and the escrow,
such cancellation to be effective immediately upon Seller giving written notice of
cancellation to Buyer and Escrow Agent. Upon such cancellation, Buyer shall
reimburse Seller for its actual out-of-pocket costs and expenses in connection with
the Property and the transaction contemplated by this Agreement, but not to exceed
$500,000.

     (iv) Seller irrevocably waives any right to damages or any other remedies or
form of relief, except as specifically set forth in this Section 10.1.

     10.2 Default by Seller.

     (a) Seller’s Default. The occurrence of any of the following will constitute a
default by Seller under this Agreement:

     (i) If, by the time set for the Closing, the conditions to Seller’s obligation
to close set forth in Section 5.2 have been satisfied and Seller has failed to
deposit into escrow the documents and other items to be deposited by Seller in
escrow by the time set for Closing, or to perform any other obligation of Seller to
be performed by the time set for Closing;

     (ii) If Seller fails to observe or perform any of the covenants or agreements
contained in this Agreement to be observed or performed by Seller following Closing,
but such failure, if of a type that can be cured or corrected by Seller, will not be
a default unless such failure continues for 15 days after written notice of breach
is given by Buyer to Seller except that if such failure is of such a character as to
require more than 15 days to correct, Seller will not be in default if

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Seller commences actions to correct such failure within the 15-day period and
thereafter, using reasonable diligence, cures such failure. In such event, the time
for Closing will automatically be extended to permit such cure within the time
period above provided, but not to exceed 30 days after Buyer’s notice; or

     (iii) If any of Seller’s representations or warranties (A) were not true and
correct in any material respect on March 1, 2011 or (B) became untrue or incorrect
in any material respect after March 1, 2011 as a result of an intentional act on the
part of Seller (a “Seller Misrepresentation”) and such Seller Misrepresentation is
not cured to Buyer’s reasonable satisfaction within 15 days following written notice
from Buyer.

     (b) Buyer’s Remedies.

     (i) If Seller is in default under Section 10.2(a)(i) of this Agreement, Buyer
may, by written notice to Seller and Escrow Agent, given within 10 days following
the date that such default has continued beyond any applicable notice and grace
period set forth in this Agreement, elect to exercise either the Termination Right
or the Specific Enforcement Right as described below, but not both, unless prior to
such notice being given, Seller otherwise cures the default, in which case Buyer and
Seller shall proceed to close the transaction within five days following such cure.

     (A) Buyer may terminate this Agreement (the “Termination Right”),
effective as of the date Buyer gives the notice to Seller and Escrow Agent
electing to exercise the Termination Right. If Buyer exercises the
Termination Right, Seller shall (i) reimburse Buyer for its actual
out-of-pocket costs and expenses in connection with the Properties and the
transactions contemplated by this Agreement, but not to exceed $500,000, and
(ii) pay Buyer a break-up fee equal to the sum of $1,500,000, which break-up
fee shall be in addition to the amounts required to be paid under clause
(i).

     (B) Buyer may elect to pursue specific performance of this Agreement
(the “Specific Performance Right”).

If Buyer fails to elect the Specific Performance Remedy within the 10-day period
described above, Buyer shall have no further right to demand specific performance and
shall be conclusively presumed to have exercised the Termination Right.

     (ii) If Seller is in default with respect to any of its indemnity obligations
under this Agreement or any post-closing obligation (including the breach of any
representation or warranty surviving the Closing), Buyer shall have all rights and
remedies at law or in equity in connection with such default.

     (iii) If, prior to Closing, Buyer discovers that Seller is in default under
Section 10.2(a)(iii) of this Agreement, Buyer may either (x) elect to waive such
default and proceed to Closing or (y) elect to cancel this Agreement and the

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escrow, such cancellation to be effective immediately upon Buyer giving written
notice of cancellation to Seller and Escrow Agent. Upon such cancellation, Seller
shall reimburse Buyer for its actual out-of-pocket costs and expenses in connection
with the Property and the transaction contemplated by this Agreement, but not to
exceed $500,000.

     (iv) Buyer irrevocably waives any right to damages or any other remedies or
form of relief, except as specifically set forth in this Section 10.2

ARTICLE 11

GENERAL PROVISIONS

     11.1 Certain Definitions. As used in this Agreement, certain capitalized terms are
defined as follows:

     (a) “Business Day” means any day other than a Saturday or Sunday or any other day on
which the Maricopa County Recorder is closed.

     (b) “Claims” means any and all obligations, debts, covenants, conditions,
representations, costs, and liabilities and any and all demands, causes of action, and
claims, of every type, kind, nature or character, direct or indirect, known or unknown,
absolute or contingent, determined or speculative, at law, in equity or otherwise, including
attorneys’ fees and litigation and court costs.

     (c) “Environmental Law” means any federal, state or local law, statute, ordinance, or
regulation pertaining to health, industrial hygiene, or environmental conditions, including,
without limitation, the Comprehensive Environmental Response, Compensation and Liability Act
of 1980, 42 U.S.C. Sections 9601, et seq.; the Resource Conservation and Recovery Act of
1976, 42 U.S.C. Sections 6901, et seq.; the Toxic Substances Control Act of 1976, 15 U.S.C.
Sections 2601, et seq.; the Superfund Amendments and Reauthorization Act of 1986, Title III,
42 U.S.C. Sections 11001, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C.
Sections 1801, et seq.; the Clean Air Act, 42 U.S.C. Sections 7401, et seq.; the Federal
Water Pollution Control Act, 33 U.S.C. Sections 1251, et seq.; the Safe Drinking Water Act,
42 U.S.C. Sections 300f, et seq.; the Solid Waste Disposal Act, 42 U.S.C. Sections 3251, et
seq.; and any other federal, state or local law, statute, ordinance, or regulation now in
effect or hereafter enacted which pertains to health, industrial hygiene, or the regulation
or protection of the environment, including, without limitation, ambient air, soil,
groundwater, surface water, and/or land use.

     (d) “Hazardous Substance” means any material, waste, substance, pollutant, or
contaminant which may or could pose a risk of injury or threat to health of the environment,
including, without limitation: (w) those substances included within the definitions of
“hazardous substance”, “hazardous waste”, “hazardous material”, “toxic substance”, “solid
waste”, or “pollutant or contaminant” in, or otherwise regulated by any Environmental Law;
(x) those substances listed in the United States Department of Transportation Hazardous
Materials Table (49 CFR 172.101, including appendices and

25

 

amendments thereto), or by the Environmental Protection Agency (or any successor
agency) as hazardous substances (40 CFR Part 302 and amendments thereto); (y) such other
substances, materials, or wastes which are or become regulated or classified as hazardous or
toxic under federal, state, or local laws or regulations; and (z) any material, waste, or
substance which is (A) petroleum or refined petroleum products; (B) asbestos in any form;
(C) polychlorinated biphenyls; (D) flammable explosives; (E) radioactive materials; (F)
mold, mildew, or other mycotoxins or fungi present at or in the Property or any portion
thereof, including building materials, in a condition, location or of a type which may pose
a risk to human health or safety or the environment, may result in damage to the property,
would adversely affect or impair the value or marketability of the Property, or requires
investigation, remediation or other response action under applicable Environmental Laws; or
(G) radon. Any reference in these definitions to statutory or regulatory sections shall be
deemed to include any amendments to such sections and any successor sections.

     (e) “Related Parties” means, with respect to any person or entity, the officers,
directors, shareholders, partners, members, employees, agents, attorneys, successors,
personal representatives, heirs, executors, or assigns of any such person or entity.

     11.2 Assignment.

     (a) General Prohibition. Buyer may not assign or otherwise transfer any of its
rights under this Agreement without the prior written consent of Seller, which consent may
be given or withheld in Seller’s sole discretion. Any such assignment or transfer without
such consent shall be absolutely null and void and shall constitute a default by Buyer under
this Agreement. No assignment shall release or otherwise relieve Buyer from any obligations
hereunder.

     (b) Indirect Transfers. Any sale, transfer, encumbrance, or other disposition
of a Controlling Interest in Buyer prior to Closing will be deemed a prohibited assignment
of this Agreement. As used in this Agreement, “Controlling Interest” means an interest, the
ownership of which empowers the holder to exercise a controlling influence over the
management, policies or personnel of a corporation, general partnership, joint venture,
limited partnership, limited liability partnership, limited liability company, trust, estate
or other entity. Ownership of 50% or more of the equity or voting securities of a
corporation, limited liability company or limited liability partnership or ownership of any
general partnership interest in a partnership will be deemed conclusively to constitute a
Controlling Interest in the corporation, limited liability company, or partnership, as the
case may be.

     (c) Assignment by Operation of Law; Bankruptcy. In no event will this
Agreement or any interest in this Agreement or the Property be assigned or assignable by
operation of law or by voluntary or involuntary bankruptcy proceedings without the prior
written consent of Seller. In no event will this Agreement or any rights or privileges of
Buyer under this Agreement be deemed an asset of Buyer under any bankruptcy, insolvency or
reorganization proceedings.

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     11.3 Binding Effect. Except as set forth in Section 11.2, the provisions of this
Agreement are binding upon and shall inure to the benefit of the parties and their respective
heirs, personal representatives, successors and assigns.

     11.4 Attorneys’ Fees. If either party to this Agreement initiates or defends any
legal action or proceeding with the other party in any way connected with this Agreement, the
prevailing party in any such legal action or proceeding, in addition to any other relief which may
be granted, whether legal or equitable, shall be entitled to recover from the losing party in any
such legal action or proceeding its reasonable costs and expenses of suit, including reasonable
attorneys’ fees and expert witness fees. If either party to this Agreement initiates or defends
any legal action or proceeding with a third party because of the violation of any term, covenant,
condition or agreement contained in this Agreement by the other party to this Agreement, then the
party so litigating shall be entitled to recover its reasonable costs and expenses of suit,
including reasonable attorneys’ fees and expert witness fees, incurred in connection with such
litigation from the other party to this Agreement. All such costs and attorney’s fees shall be
deemed to have accrued on commencement of any such legal action or proceeding and shall be
enforceable whether or not such legal action or proceeding is prosecuted to judgment. Attorneys’
fees under this Section include attorneys’ fees on any appeal and in any bankruptcy or similar or
related proceeding in federal or state courts. Any dispute as to the amounts payable pursuant to
this Section shall be resolved by the court and not by a jury.

     11.5 Waivers. No waiver of any of the provisions of this Agreement shall constitute a
waiver of any other provision, whether or not similar, nor shall any waiver be a continuing waiver.
Except as expressly provided in this Agreement, no waiver shall be binding unless executed in
writing by the party making the waiver. Either party may waive any provision of this Agreement
intended for its benefit; provided, however, such waiver shall in no way excuse the other party
from the performance of any of its other obligations under this Agreement.

     11.6 Notices. All notices shall be in writing and shall be made by hand delivery,
facsimile, express delivery service, freight prepaid, or by certified mail, postage prepaid, return
receipt requested. Notices will be delivered or addressed to Seller and Buyer at the addresses or
facsimile numbers set forth on the first page of this Agreement or at such other address or number
as a party may designate to the other party in writing. Any such notice shall be deemed to be
given and received and shall be effective (a) on the date on which the notice is delivered, if
notice is given by hand delivery; (b) on the date of actual receipt, if the notice is sent by
express delivery service; (c) on the date on which it is received or rejected as reflected by a
receipt if given by United States mail, addressed and sent as aforesaid; and (d) when transmitted
properly, in the case of facsimile transmission, with a facsimile being deemed to have been
properly transmitted as of the date of successful transmission of the entire notice, as confirmed
by return transmission; provided, however, that if successful transmission is completed after 6:00
p.m., local time for the recipient on such day, then the facsimile transmission will be deemed to
have been given and received and become effective on the next succeeding day.

     11.7 Further Documentation. Each party agrees in good faith to execute such further
or additional documents as may be necessary or appropriate to fully carry out the intent and
purpose of this Agreement.

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     11.8 Survival. The following obligations of the parties will survive the Closing or
cancellation of this Agreement, whether contained in this Agreement or in any agreement,
instrument, or other document given by a party in connection with the transactions contemplated by
this Agreement:

     (a) Post-Closing Covenants. Any and all obligations of the parties that are to
be performed following the Closing;

     (b) Indemnification Obligations. All indemnity obligations of the parties;

     (c) Warranties. Any and all warranties or representations of the parties;
provided, however, that notice of any claim relating to representations and warranties of
the Seller (other than those entitled “Organizational Status,” “Entity Action,” “Enforceable
Nature of Agreement,” and “Violations, Consents; Defaults” which appear in Section 7.1),
must be given by the first anniversary of the Closing and an action in a court of competent
jurisdiction must be brought within sixty (60) days following the first anniversary; and

     (d) Other Obligations. Any other obligation with respect to which it is
expressly provided that it will survive the Closing or cancellation of this Agreement.

     11.9 Counterparts. This Agreement may be executed in counterparts (and by different
parties to this Agreement in different counterparts), each of which shall constitute an original,
but all of which when taken together shall constitute a single contract.

     11.10 Privilege Taxes. Seller represents and warrants to Buyer that the Closing Date
is more than two (2) years after the substantial completion of the Improvements. Seller
represents, warrants and covenants to Buyer that all state and local transaction privilege, sales,
excise, use or similar taxes relating to the development, sale or rental of the Property
(including, without limitation any speculative builder tax, owner-builder tax, or construction
contractor tax) have been paid and Seller shall pay any such taxes that may arise as a result of
the sale of the Property to Buyer as and when due. Seller shall indemnify, hold harmless and
defend the Indemnified Parties from any and all Claims relating to a breach of this Section 11.10.
The provisions of this Section 11.10 shall survive Closing.

     11.11 Construction. Unless the context of this Agreement clearly requires otherwise
or unless otherwise expressly stated in this Agreement, this Agreement shall be construed in
accordance with the following:

     (a) Use of Certain Words. References to the plural include the singular and to
the singular include the plural and references to any gender include any other gender. The
part includes the whole; the terms “include” and “including” are not limiting; and the term
“or” has, except where otherwise indicated, the inclusive meaning represented by the phrase
“and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this
Agreement refer to this Agreement as a whole and not to any particular provision of this
Agreement.

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     (b) References. References in this Agreement to “Articles,” “Sections,” or
Exhibits are to the Articles and Sections of this Agreement and the Exhibits to this
Agreement. Any reference to this Agreement includes any and all amendments, extensions,
modifications, renewals, or supplements to this Agreement. The headings of this Agreement
are for purposes of reference only and shall not limit or define the meaning of any
provision of this Agreement.

     (c) The Recitals. Buyer and Seller acknowledge that the Recitals are accurate
and that they are a part of this Agreement.

     (d) Construing the Agreement. Each of the parties to this Agreement
acknowledges that such party has had the benefit of independent counsel with regard to this
Agreement and that this Agreement has been prepared as a result of the joint efforts of all
parties and their respective counsel. Accordingly, all parties agree that the provisions of
this Agreement shall not be construed or interpreted for or against any party to this
Agreement based upon authorship or any other factor but shall be construed and interpreted
according to the ordinary meaning of the words used so as to fairly accomplish the purposes
and intentions of all parties to this Agreement.

     (e) Partial Invalidity. If any portion of this Agreement is determined to be
unconstitutional, unenforceable or invalid, such portion of this Agreement shall be stricken
from and construed for all purposes not to constitute a part of this Agreement, and the
remaining portion of this Agreement shall remain in full force and effect and shall, for all
purposes, constitute the entire Agreement.

     (f) Governing Law. This Agreement shall be construed according to the laws of
the State of Arizona, without giving effect to its conflict of laws principles.

     (g) Time of Essence; Time Periods. Time is of the essence of this Agreement.
The time for performance of any obligation or taking any action under this Agreement shall
be deemed to expire at 6:00 o’clock p.m. (local Arizona time) on the last day of the
applicable time period provided for in this Agreement. If the time for the performance of
any obligation or taking any action under this Agreement expires on a Saturday, Sunday or
legal holiday, the time for performance or taking such action shall be extended to the next
succeeding day which is not a Saturday, Sunday or legal holiday.

     (h) Entire Agreement. This Agreement, which includes Exhibits A through G and
Schedule 5.1 constitutes the entire agreement between the parties pertaining to the subject
matter contained in this Agreement. Except for that certain Access and Reimbursement dated
February 9, 2011 (the “Access Agreement”) between Cole REIT III Operating Partnership, LP, a
Delaware limited partnership (“COP III”), and Seller, that certain Non-Disclosure Agreement,
dated November 2, 2010, entered into by and between Cole Capital Partners, LLC and Seller,
as amended by Amendment to Non-Disclosure Agreement dated February 17, 2011, and that
certain side letter dated March 1, 2011 between COP III and Seller, all prior and
contemporaneous agreements, representations and understandings of the parties, oral or
written, are superseded by and

29

 

merged in this Agreement. No supplement, modification or amendment of this Agreement
shall be binding unless in writing and executed by Buyer and Seller.

[Signatures appear on following page]

30

 

EXECUTED as of the date written on the first page of this Agreement.

	 	 	 	 	 
	 	SELLER:

RIVERPOINT LOTS 1/3/5, LLC, an Arizona

limited liability company

 	 
	 	By:  	Apollo Group, Inc., an Arizona corporation,
 	 
	 	 	its sole member and manager 	 

					
	 	
 	 
	 	By:  	
/s/ Brian L. Swartz 	 
	 	 	Name:  	Brian L. Swartz 	 
	 	 	Title:  	
Senior Vice President, 
Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	RIVERPOINT LOT 2, LLC, an Arizona

limited liability company

 	 
	 	By:  	Apollo Group, Inc., an Arizona corporation,
 	 
	 	 	its sole member and manager 	 

					
	 	
 	 
	 	By:  	
/s/ Brian L. Swartz 	 
	 	 	Name:  	Brian L. Swartz 	 
	 	 	Title:  	
Senior Vice President, 

Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	BUYER:

COLE OF PHOENIX AZ, LLC, a Delaware limited liability company

 	 
	 	By:  	Cole REIT Advisors III, LLC, a Delaware
 	 
	 	 	limited liability company, its manager 	 

					
	 	
 	 
	 	By:  	/s/
Todd J. Weiss 	 
	 	 	Name:  	Todd J. Weiss 	 
	 	 	Title:  	Senior Vice President 	 
	 

31

 

EXHIBIT A

DEPICTION OF RIVERPOINT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}]]