Document:

exv10w6

Exhibit 10.6

Master Loan and Security Agreement Number 344489 dated as of August 12, 2011          

Name and Address of Borrower:

Choice Environmental Services, Inc.

4725 PIEDMONT ROW DR

STE 400

CHARLOTTE, NC 28210

 

Master Loan and Security Agreement Provisions

 

1. INTRODUCTION. In consideration of the mutual covenants set forth herein, Borrower and Lender
hereby enter into this Master Loan and Security Agreement and agree to the terms and conditions set
forth herein. Each Loan Schedule that is executed by Borrower and Lender from time to time pursuant
to this Master Loan and Security Agreement shall be deemed to be a separate loan transaction
incorporating all of the terms and conditions of this Master Loan and Security Agreement.
References in this Master Loan and Security Agreement to “Agreement”, “hereunder” and “herein”
shall mean a Loan Schedule which incorporates this Master Loan and Security Agreement. References
in this Master Loan and Security Agreement to “Loan” shall mean the loan transaction evidenced by a
Loan Schedule.

2. LOAN SCHEDULES. Borrower shall evidence its agreement to enter into a loan transaction
incorporating the terms hereof by executing and delivering to Lender a Loan Schedule. Borrower’s
execution of a Loan Schedule shall obligate Borrower to make all of the payments set forth in the
Loan Schedule. The Loan Schedule shall set forth the amount of the Loan, the term of the Loan, the
number of payments to be made and the amount and dates upon which such payments are due (each a
“Payment Date”). The Borrower’s obligation to repay the principal amount of each Loan together
with interest and all other amounts payable by Borrower as set forth in the applicable Loan
Schedule is absolute, unconditional and irrevocable, and all such amounts shall be paid by Borrower
in accordance with the terms thereof without any abatement, reduction, setoff or defense of any
kind.

3. SECURITY INTEREST. To secure the payment and performance of each and every debt, liability and
obligation of every type and description which Borrower may now or at any time hereafter owe to
Lender (whether such debt, liability or obligation now exists or is hereafter created, acquired or
incurred, arises out of a lease, installment sale contract or loan, swap, derivative, foreign
exchange, hedge or other similar agreement, whether or not it is currently contemplated by the
Borrower and Lender, whether or not any documents evidencing it refer to this Master Loan and
Security Agreement, and whether it is or may be direct or indirect, due or to become due, absolute
or contingent, primary or secondary, liquidated or unliquidated, joint, several or joint and
several, and all costs and expenses incurred by Lender to obtain, preserve, perfect and enforce the
security interest granted herein and to maintain, preserve and collect the property subject to the
security interest; all such debts, liabilities and obligations being herein collectively referred
to as the “Obligations”), Borrower hereby grants to Lender a first-priority security interest in
all of the property described in each Loan Schedule, together with all substitutions,
replacements, parts, accessories, supplies, improvements, additions and accessions now or hereafter
affixed thereto or used in connection therewith, and all proceeds and products thereof (referred to
collectively as the “Collateral” and individually as an “Item”), and all books and records of
Borrower pertaining to the Collateral.

4. BORROWER COVENANTS; REPRESENTATIONS AND WARRANTIES. (a) Affirmative Covenants. Borrower shall:
(i) have, at the time Borrower acquires rights in the Collateral, absolute title to each Item of
Collateral free and clear of all security interests, liens and encumbrances except the security
interest of Lender and the subordinated security interest of Wells Fargo Bank, National
Association, and will defend the Collateral against all claims or demands of all persons other than
Lender; (ii) use the Collateral primarily for business purposes as opposed to personal, family or
household purposes; (iii) pay all shipping and delivery charges and other expenses incurred in
connection with the Collateral and pay all lawful claims, whether for labor, materials, supplies,
rent, assessments, taxes or services, which might or could if unpaid become a lien on the
Collateral; (iv) comply in all material respects with all laws and regulations and rules, all
manufacturer’s instructions and warranty requirements, and the conditions and requirements of all
policies of insurance relating to the Collateral and its use, and use reasonable care to prevent
any portion of the Collateral from being damaged or depreciating at an excessive rate (normal wear
and tear excepted); (v) mark and identify the Collateral with all information and in such manner as
Lender may reasonably request from time to time and replace promptly any such markings or
identification which are removed, defaced or destroyed; (vi) at any and all times during business
hours, grant Lender free access to enter upon the premises wherein the Collateral shall be located
or used and permit Lender to audit and inspect the Collateral; (vii) pay when due or reimburse
Lender on demand for all reasonable out of pocket costs of collection of any of the Obligations and
all other reasonable out-of-pocket expenses (including in each case all reasonable attorneys’ fees)
incurred by Lender in connection with the creation, perfection, satisfaction, protection,
liquidation, defense or enforcement of Lender’s security interest in the Collateral or the
creation, continuance, protection, defense or enforcement of this Agreement or any or all of the
Obligations, including expenses incurred in any litigation or bankruptcy or insolvency proceedings;
(viii) maintain a system of accounts established and administered in accordance with generally
accepted accounting principles and practices consistently applied; (ix) if Borrower should no
longer be wholly owned by Swisher Hygiene, Inc., or if Swisher Hygiene, Inc., should cease to be a
publicly traded company or its financial statements should no longer be publicly available, then
within forty-five (45) days after the end of each fiscal quarter other than the final fiscal
quarter of each fiscal year, deliver to Lender a balance sheet and statement of income as at the
end of such quarter, each setting forth in comparative form the corresponding figures for the
comparable period in the preceding fiscal year and, within one hundred and twenty (120) days

THIS AGREEMENT INCLUDES THE TERMS ON THE ATTACHED PAGE(S).

	 	 	 
	Lender: Wells Fargo Equipment Finance, Inc.

	 	Borrower: Choice Environmental Services, Inc.
	/s/ David Kuhn 
	 	 
	 
	 	 
	 

By

	 	/s/ Thomas Aucamp 

By
	 
	 	 
	VP 

Title

	 	EVP 

Title

 

 

after the end of each fiscal year, deliver to Lender a balance sheet as at the end of such year and
statements of income and cash flows for such year, with accompanying notes to financial statements,
each setting forth in comparative form the corresponding figures for the preceding year, in each
case prepared in accordance with generally accepted accounting principles and practices
consistently applied and certified by Borrower’s chief financial officer as fairly presenting the
financial position and results of operations of Borrower, and, in the case of year-end financial
statements, certified by an independent accounting firm acceptable to Lender; (x) with reasonable
promptness, Borrower shall furnish Lender with such other information, financial or otherwise,
relating to Borrower or the Collateral as Lender shall reasonably request; and (xi) except to the
extent caused by Lender’s intentional misconduct or gross negligence, indemnify Lender against all
losses, claims, demands, liabilities and expenses of every kind (including, without limitation,
attorneys’ fees) arising out of, related to, or caused by, an Item or Items of Collateral.

(b) Negative Covenants. Borrower shall not (i) voluntarily or involuntarily create, incur, assume
or suffer to exist any mortgage, lien, security interest, pledge or other encumbrance or attachment
of any kind whatsoever upon, affecting or with respect to the Collateral or the Agreement or any of
Borrower’s interest under the Agreement, except for the subordinated security interest of Wells
Fargo Bank, National Association; (ii) permit the name of any person, association or corporation
other than Borrower or Lender to be placed on the Collateral as a designation that might be
interpreted as a claim of ownership or security interest; (iii) part with possession or control of
or suffer or allow to pass out of its possession or control any Item or change the location of the
Collateral (other than titled vehicles) or any part thereof from the address shown on the Loan
Schedule without Lender’s prior written consent; (iv) ASSIGN OR IN ANY WAY DISPOSE OF ALL OR ANY
PART OF ITS RIGHTS OR OBLIGATIONS UNDER THE AGREEMENT OR ENTER INTO ANY LEASE OR SALE OF ALL OR
ANY PART OF THE COLLATERAL WITHOUT LENDER’S PRIOR WRITTEN CONSENT (and any attempt by Borrower to
assign shall be null and void); (v) change its name or address from that set forth above unless it
shall have given Lender no less than thirty (30) days’ prior written notice thereof; (vi) permit
the sale or transfer of any shares of its capital stock or of any ownership interest in the
Borrower to any person, persons, entity or entities (whether in one single transaction or in
multiple transactions) which results in a transfer of a majority interest in the ownership and/or
the control of the Borrower from the person, persons, entity or entities who hold ownership or
control of the Borrower as of the date of this Master Loan and Security Agreement, or otherwise
change its corporate/organizational structure or the jurisdiction in which it is organized; (vii)
consolidate with or merge into or with any other entity (unless Borrower is the surviving entity)
or sell, transfer, lease or otherwise dispose of all or substantially all of Borrower’s assets to
any person or entity.

(c) Representations and Warranties. Borrower represents and warrants to Lender, that effective on
the date on which Borrower executes this Master Loan and Security Agreement and each Loan Schedule:
(i) if Borrower is a partnership, corporation, limited liability company or other legal entity,
the execution and delivery of this Master Loan and Security Agreement, each Loan Schedule and the
performance of Borrower’s obligations hereunder and thereunder have been duly authorized by all
necessary action on the part of the Borrower and are not in contravention of, and will not result
in a breach of, any of the terms of Borrower’s charter, by-laws, articles of incorporation or other
organic documents or any loan agreements or indentures of Borrower, or any other contract,
agreement or instrument to which Borrower is a party or by which it is bound; (ii) the person
signing the Master Loan and Security Agreement and each Loan Schedule on behalf of Borrower is duly
authorized; (iii) Borrower’s exact legal name as it appears on its charter or other organic
documents, including as to punctuation and capitalization, and its principal place of business or
chief executive office is as set forth in the heading of this Master Loan and Security Agreement;
(iv) Borrower is duly organized, validly existing and in good standing under the laws of the state
of its incorporation or formation and is duly qualified and authorized to transact business in, and
is in good standing under the laws of, each other state in which the Collateral is or will be
located; (v) there has been no change in the name of the Borrower, or the name under which
Borrower conducts business within the one year preceding the date hereof except as previously
reported in writing to Lender; (vi) Borrower has not moved its principal place of business or chief
executive office, or has not changed the jurisdiction of its organization within the one year
preceding the date hereof except as previously reported in writing to Lender; (vii) this Master
Loan and Security Agreement and each Loan Schedule constitute a legal, valid and binding obligation
of Borrower, enforceable against Borrower in accordance with its terms; (viii) all information
provided by Borrower to Lender in connection with a Loan is true and correct in all material
respects; (ix) the Collateral will be used primarily for business purposes as opposed to personal,
family or household purposes; and (x) there are no suits pending or, to Borrower’s knowledge,
threatened against Borrower or any guarantor which, if decided adversely, might materially
adversely affect Borrower’s or such guarantor’s financial condition, the value, utility or
remaining useful life of the Collateral, the rights intended to be afforded to Lender hereunder or
under any guarantee or the ability of Borrower or any guarantor to perform its obligations under
the Master Loan and Security Agreement or any document delivered in connection with the Loan.

5. ASSIGNMENT. Lender may sell or assign, or grant a security interest in, its interest in one or
more Agreements, or in this Master Loan and Security Agreement, or any Loan, and assign its
security interest in all or any part of the Collateral, in whole or in part, without notice to or
the consent of Borrower. Borrower agrees not to assert against any assignee of Lender any claim or
defense Borrower may have against Lender.

6. COLLATERAL PERSONALTY. The Collateral shall remain personal property regardless of its
attachment to realty, and Borrower agrees to take such action at its expense as may be necessary to
prevent any third party from acquiring any interest in the Collateral as a result of its attachment
to realty. If requested by Lender with respect to any Item, Borrower will obtain and deliver to
Lender waivers of interest or liens in recordable form, satisfactory to Lender, from all persons
claiming any interest in the real property on which such Item is installed or located.

7. USE AND MAINTENANCE. Borrower will use the Collateral with due care and for the purpose for
which it is intended. Borrower will maintain the Collateral in good repair, condition and working
order and will furnish all parts and services required therefor, all at its expense, ordinary wear
and tear excepted. Borrower shall, at its expense, make all modifications and improvements to the
Collateral required by law, and shall not make other modifications or improvements to the
Collateral without the prior written consent of Lender if such modifications or improvements may
reasonably be expected to have an adverse effect on the value or marketability of the Collateral.
All parts, modifications and improvements to the Collateral shall, when installed or made,
immediately become part of the Collateral for all purposes and subject to Lender’s security
interest under the Agreement. The Collateral shall not be used outside of the United States
without Lender’s prior written consent.

8. LOSS OR DAMAGE. Borrower shall bear all risk of damage, loss, theft, destruction, condemnation
or seizure with respect to the Collateral, and no damage, loss, theft, destruction of, condemnation
or seizure with respect to the Collateral or any part thereof shall affect any obligation of
Borrower under the Agreement, which shall continue in full force and effect. Borrower shall advise
Lender in writing within ten (10) business days of the occurrence of any damage, loss, theft,
destruction or governmental commandeering of any Item (an “Event of Loss”) and of the circumstances
and extent of such Event of Loss. Borrower shall either

2

 

(a) replace such Item with collateral acceptable to Lender within 30 days after the Event of Loss
and such replacement collateral shall automatically become Collateral subject to Lender’s security
interest under the Agreement or (b) pay down the Obligations by an amount representing the unpaid
portion of the Obligations funded in reliance of the affected Items as reasonably determined by
Lender. Any insurance or condemnation proceeds received shall be paid to Lender and credited to
Borrower’s obligation under this paragraph. Whenever the Collateral is damaged and such damage can
be repaired, Borrower shall, at its expense, promptly effect such repairs as Lender shall deem
necessary for compliance with paragraph 7, above. Proceeds of insurance with respect to such
reparable damage to the Collateral shall be applied either to the repair of the Collateral by
payment directly to the party completing the repairs, or to the reimbursement of Borrower for the
cost of such repairs provided that Lender shall have received such evidence as Lender shall
reasonably deem satisfactory that such repairs have been completed, and further provided that
Lender may apply such proceeds to the payment of any installment or other sum due or to become due
under the Agreement if there shall have occurred and be continuing any Event of Default or any
event which with lapse of time or notice, or both, would become an Event of Default.

9. INSURANCE. Borrower shall obtain and maintain on or with respect to the Collateral at its own
expense all-risk physical damage insurance, including the risks normally included in extended
coverage, malicious mischief and vandalism, insuring against loss or damage to the Collateral in an
amount not less than the full replacement value of the Collateral. Borrower shall furnish Lender
with a certificate of insurance evidencing the issuance of a policy to Borrower in at least the
minimum amount required herein naming Lender as loss payee. Such policy shall be in such form and
with such insurers as may be reasonably satisfactory to Lender, and shall contain a clause
specifying that no action or misrepresentation by Borrower shall invalidate such policy and a
clause requiring the insurer to give to Lender at least thirty (30) days prior written notice of
(a) the cancellation or non-renewal of such policy or (b) any amendment to the terms of such policy
if such amendment would cause the policy no longer to conform to the policy requirements stated in
this paragraph, and at least ten (10) days prior written notice for non-payment of premium, and
that the coverage of Lender shall not be terminated, reduced or affected in any manner regardless
of any breach or violation by Borrower or any of its affiliates of any warranties, declarations or
conditions of such insurance policy or policies. Borrower shall deliver to Lender annually and at
any time that there is a change in insurance carrier, evidence satisfactory to Lender of the
required insurance coverage. Borrower hereby assigns to Lender the proceeds of all insurance and
directs any insurer to make payments directly to Lender upon Lender’s certification to such insurer
that there has occurred and is continuing an Event of Default or any event which with lapse of time
or notice, or both, would become an Event of Default. Lender shall be under no duty to ascertain
the existence of or to examine any such policy or to advise Borrower in the event any such policy
shall not comply with the requirements hereof.

10. ADDITIONAL ACTION; EXPENSES. Borrower will promptly execute and deliver to Lender such further
documents and take such further action as Lender may request in order to carry out more effectively
the intent and purpose of the Agreement, including any action deemed necessary to protect fully
Lender’s interest under the Agreement in accordance with the Uniform Commercial Code or other
applicable law. Lender and any assignee of Lender is authorized to file one or more Uniform
Commercial Code financing statements without the signature of Borrower or signed by Lender or any
assignee of Lender as attorney-in-fact for Borrower. Borrower hereby grants to Lender a power of
attorney in Borrower’s name, to apply for a certificate of title for any Item that is required to
be titled under the laws of any jurisdiction where the Collateral is or may be used and/or to
transfer title thereto upon the exercise by Lender of its remedies upon an Event of Default by
Borrower under the Agreement. Borrower acknowledges that Lender may incur out-of-pocket costs and
expenses in connection with the Loans contemplated by this Master Loan and Security Agreement, and
accordingly agrees to pay (or reimburse Lender for) the reasonable costs and expenses related to
(a) filing any financing, continuation or termination statements, (b) any title and lien searches
with respect to the Agreement and the Collateral, (c) documentary stamp taxes relating thereto, and
(d) procuring certified charter documents and good standing certificates of Borrower and any
guarantor. Borrower will do whatever may be necessary to have a statement of the interest of
Lender and any assignee of Lender in the Collateral noted on any certificate of title relating to
the Collateral and will deliver said certificate to Lender. If Borrower fails to perform or comply
with any of its agreements, Lender may perform or comply with such agreements in its own name or in
Borrower’s name as attorney-in-fact and the amount of any payments and expenses of Lender incurred
in connection with such performance or compliance, together with interest thereon at the rate
provided below, shall be deemed payable by Borrower upon demand.

11. LATE CHARGES. In the event any amount payable under the Agreement shall not be paid within ten
(10) days of when due, Lender shall have the right to assess and Borrower shall pay to Lender, as a
late charge, 5% of such overdue amount or the maximum late charge allowed by law, whichever is
less. Payments thereafter received shall be applied first to delinquent installments and then to
current installments.

12. DEFAULT. Each of the following events shall constitute an “Event of Default” under the
Agreement: (a) Borrower shall fail to make any required payment within ten (10) days of when due
under this Agreement; (b) any certificate, statement, representation, warranty or financial or
credit information heretofore or hereafter made or furnished by or on behalf of Borrower or any
guarantor of Borrower’s obligations under the Agreement proves to have been false or misleading in
any material respect when made or, as of the date of any Loan, Borrower shall have omitted any
material fact, contingent or unliquidated liability or claim against Borrower or any such
guarantor; (c) Borrower shall fail to observe or perform any other agreement to be observed or
performed by Borrower under the Agreement and the continuance thereof for ten (10) days following
written notice thereof by Lender to Borrower; (d) Borrower or any guarantor or any partner of
Borrower if Borrower is a partnership shall cease doing business as a going concern or make an
assignment for the benefit of creditors; (e) Borrower or any guarantor or any partner of Borrower
if Borrower is a partnership or the holder(s) of the majority ownership interests of Borrower shall
voluntarily file, or have filed against it involuntarily (and which involuntary filing remains
undismissed for sixty (60) days), a petition for liquidation, reorganization, adjustment of debt,
or similar relief under the federal Bankruptcy Code or any other present or future federal or state
bankruptcy or insolvency law, or a trustee, receiver, or liquidator shall be appointed of it or of
all or a substantial part of its assets; (f) Borrower or any guarantor shall be in breach of or in
default in the payment or performance of obligations having a combined outstanding amount of
$1,000,000 or more under any credit agreement, conditional sales contract, lease or other contract,
howsoever arising; (g) an event of default shall occur under any other obligation Borrower or
guarantor owes to Lender; (h) an event of default shall occur under any indebtedness Borrower may
now or hereafter owe to any affiliate of Lender; or (i) a change in Borrower’s or any guarantor’s
condition or circumstances from the date hereof results in a Material Adverse Effect.
“Material Adverse Effect” shall mean a material adverse effect upon any of (i) the
financial condition, operations, business or properties of the Borrower or any guarantor taken as a
whole; (ii) the ability of the Borrower or any guarantor, taken as a whole, to perform its
obligations under this Agreement or any guaranty to which it is a party in any material
respect or any other material contract in any material respect to which any one or more of them is
a party; (iii) the legality, validity or enforceability of this Agreement or any guaranty; or (iv)
the perfection or priority of the security interest granted under this Agreement or the rights and
remedies of the Lender under this Agreement (other than, in each case, a change resulting from any
act or omission by the Lender).

3

 

13. REMEDIES. At any time after the occurrence of an Event of Default, Lender shall have the
remedies of a secured party under the Uniform Commercial Code and other applicable laws and may
also exercise one or more of the following remedies:

(a) Lender may declare all unmatured obligations, including but not limited to, all unpaid amounts
due and to become due under this Agreement and under each and every other Loan Schedule to this
Master Loan and Security Agreement to be immediately due and payable and thereupon all such amounts
including, without limitation, the full principal balance of each Loan and any additional amount
due upon the prepayment of any Loan prior to its scheduled maturity date, whether denominated as a
prepayment premium or otherwise, together with accrued but unpaid interest through and including
the date of payment in full, shall be and become immediately due and payable (collectively, the
“Accelerated Balance”). Interest on the Accelerated Balance shall be calculated from the date of
such Event of Default, both before and after judgment, at a rate equal to the lesser of 12% per
annum or the highest rate permitted by law.

(b) Lender may require Borrower, at Lender’s request and at Borrower’s own cost, to promptly
deliver possession of the Collateral to Lender in such manner and to such place as Lender shall
direct, or Lender may at any hour, without notice to Borrower but without a breach of the peace,
and without liability except for malicious acts by its agents, enter upon Borrower’s premises or
any other premises and take possession of or render unusable any of the Collateral, and hold, lease
or sell at public or private sale any such Collateral, which sale may, at Lender’s option, be held
on Borrower’s premises. If Lender leases or sells the Collateral, Lender shall have the right to
recover from Borrower any deficiency remaining after the application of the proceeds to the
Accelerated Balance and all other amounts due under the Agreement. At any such sale, Lender may
disclaim any warranties of title or the like. If Lender sells any of the Collateral upon credit,
Borrower will be credited only with the payments actually made by the purchaser. Any notice of
sale, disposition or other action by Lender required by law and sent to Borrower at Borrower’s
address shown above, or at such other address as Borrower may from time to time be shown on the
records of Lender, at least five (5) days prior to such action, shall constitute reasonable notice
to Borrower. Lender shall be entitled to apply the proceeds of any sale or other disposition of
the Collateral to the Obligations in such order and manner as Lender may determine. Borrower
waives any and all rights to notice or hearing prior to Lender taking immediate possession of the
Collateral or any portion thereof, and Borrower waives any and all rights to a bond or security
which may be required by applicable law prior to the exercise of any of Lender’s remedies against
the Collateral or any portion thereof. Borrower waives any and all requirements that the Lender
sell or dispose of all or any part of the Collateral at any particular time, regardless of whether
Borrower has requested such sale or disposition.

(c) In addition to any amounts recoverable under this paragraph 13, Lender shall be entitled to
recover all out of pocket expenses and collection costs which Lender shall have incurred by reason
of any Event of Default, including but not limited to expenses of repossession, repair, storage,
transportation, and disposition of the Collateral and including expenses incurred by employees and
reasonable attorneys’ fees, including attorneys’ fees on appeal.

(d) Lender’s remedies shall be cumulative and may be exercised singularly or concurrently at
Lender’s option, and shall be in addition to all other remedies at law or in equity or by
agreement, but only to the extent necessary to permit Lender to recover amounts for which Borrower
is liable under the Agreement. Borrower waives any requirements of law that might limit any of the
remedies herein to the extent permitted by law. No express or implied waiver by Lender of any
breach of Borrower’s obligations under the Agreement shall constitute a waiver of any other breach
of Borrower’s obligations under the Agreement. Lender’s failure or delay in exercising any rights
shall not be a waiver of any such right upon the continuation or recurrence of any Event of
Default. Any single or partial exercise of any right by Lender shall not exhaust the same or be a
waiver of any other right. To the extent permitted by applicable law, Borrower hereby waives the
benefit and advantage of, and covenants not to assert against Lender, any valuation, inquisition,
stay, appraisement, extension or redemption laws now existing or which may hereafter exist which,
but for this provision, might be applicable to any sale or lease made under the judgment, order or
decree of any court or under the powers of sale and leasing conferred by the Agreement or
otherwise. To the extent permitted by applicable law, Borrower hereby waives any rights now or
hereafter conferred by statute or otherwise which may require Lender to sell, lease or otherwise
use any Collateral in mitigation of Lender’s damages.

14. NOTICES. Any written notice under the Agreement to Borrower or Lender shall be deemed to have
been given when delivered personally or deposited with a nationally recognized overnight courier
service or in the United States mails, postage prepaid, addressed to recipient at its address set
forth above or at such other address as may be last known to the sender. In the event Borrower
changes its address at any time prior to the date the Obligations are paid in full, Borrower agrees
to promptly give written notice of said change of address in the manner set forth herein.

15. NON-WAIVER. No course of dealing between Lender and Borrower or any delay or omission on the
part of Lender in exercising any rights under the Agreement shall operate as a waiver of any rights
of Lender. A waiver on any one occasion shall not be construed as a bar to or waiver of any right
or remedy on any future occasion. No waiver or consent shall be binding upon Lender unless it is
in writing and signed by Lender.

16. MISCELLANEOUS. This Master Loan and Security Agreement and the Loan Schedules represent the
entire agreement between the parties with respect to the transactions contemplated hereby. This
Agreement can be modified, amended, terminated or discharged, and the Security Interest can be
released, only explicitly in a writing signed by Lender. Lender’s duty of care with respect to
Collateral in its possession (as imposed by law) shall be deemed fulfilled if Lender exercises
reasonable care in physically safekeeping such Collateral or, in the case of Collateral in the
custody or possession of a bailee or other third person, exercises reasonable care in the selection
of the bailee or other third person, and Lender need not otherwise preserve, protect, insure or
care for any Collateral. Lender shall not be obligated to exercise or reserve any rights Borrower
may have against prior parties, to realize on the Collateral at all or in any particular manner or
order, or to apply any cash proceeds of Collateral in any particular order of application. This
Agreement shall be binding upon and inure to the benefit of Borrower and Lender and their
respective heirs, representatives and assigns and shall take effect when signed by Borrower and
delivered to Lender, and Borrower waives notice of Lender’s acceptance hereof. Lender may execute
this Agreement if appropriate for the purpose of filing, but the failure of Lender to execute this
Agreement shall not affect or impair the validity or effectiveness of this Agreement. Except to
the extent otherwise required by law, this Agreement shall be governed by the internal laws of the
State of Minnesota. If any provision or application of this Agreement is held unlawful or
unenforceable in any

4

 

respect, such illegality or unenforceability shall not affect other provisions or applications
which can be given effect, and this Agreement shall be construed as if the unlawful or
unenforceable provision or application had never been contained herein or prescribed hereby. All
representations and warranties contained in this Agreement shall survive the execution, delivery
and performance of this Agreement and the creation and payment of the Obligations. If this
Agreement is signed by more than one person as Borrower, the term “Borrower” shall refer to each of
them separately and to both or all of them jointly; all such persons shall be bound both severally
and jointly with the other(s); and the Obligations shall include all debts, liabilities and
obligations owed to Lender by any Borrower solely or by both or several or all Borrowers jointly or
jointly and severally, and all property described in paragraph 3 shall be included as part of the
Collateral, whether it is owned jointly by both or all Borrowers or is owned in whole or in part
by one (or more) of them. The captions contained herein or in any Loan Schedule are inserted for
convenience only and shall not affect the meaning or interpretation of this Master Loan and
Security Agreement or any Loan Schedule. Lender may in its sole discretion, accept a photocopy,
electronically transmitted facsimile or other reproduction of this Agreement and/or a Loan Schedule
(a “Counterpart”) as the binding and effective record of this Agreement and/or a Loan Schedule
whether or not an ink signed copy hereof or thereof is also received by Lender from Borrower,
provided, however, that if Lender accepts a Counterpart as the binding and effective record of this
Agreement or a Loan Schedule, the Counterpart acknowledged in writing by Lender shall constitute
the record hereof or thereof. Borrower agrees that a Counterpart of this Agreement or a Loan
Schedule received by Lender, shall, when acknowledged in writing by Lender, constitute an original
document for the purposes of establishing the provisions hereof and thereof and shall be legally
admissible under the best evidence rule and binding on and enforceable against Borrower. If Lender
accepts a Counterpart of a Loan Schedule as the binding and effective record thereof only such
Counterpart acknowledged in writing by Lender shall be marked “Original” and to the extent that a
Loan Schedule constitutes chattel paper, a security interest may only be created in the Loan
Schedule that bears Lender’s ink signed acknowledgement and is marked “Original.” TIME IS OF THE
ESSENCE WITH RESPECT TO THE OBLIGATIONS OF BORROWER UNDER THIS AGREEMENT.

ARBITRATION:

(a) Arbitration. The parties hereto agree, upon demand by any party, to submit to binding
arbitration all claims, disputes and controversies between or among them (and their respective
employees, officers, directors, attorneys, and other agents), whether in tort, contract or
otherwise arising out of or relating to in any way (i) the loan and related loan and security
documents which are the subject of this Agreement and its negotiation, execution,
collateralization, administration, repayment, modification, extension, substitution, formation,
inducement, enforcement, default or termination; or (ii) requests for additional credit under this
Agreement.

(b) Governing Rules. Any arbitration proceeding will (i) proceed in a location selected by the
American Arbitration Association (“AAA”); (ii) be governed by the Federal Arbitration Act (Title 9
of the United States Code), notwithstanding any conflicting choice of law provision in any of the
documents between the parties; and (iii) be conducted by the AAA, or such other administrator as
the parties shall mutually agree upon, in accordance with the AAA’s commercial dispute resolution
procedures, unless the claim or counterclaim is at least $1,000,000.00 exclusive of claimed
interest, arbitration fees and costs in which case the arbitration shall be conducted in accordance
with the AAA’s optional procedures for large, complex commercial disputes (the commercial dispute
resolution procedures or the optional procedures for large, complex commercial disputes to be
referred to, as applicable, as the “Rules”). If there is any inconsistency between the terms
hereof and the Rules, the terms and procedures set forth herein shall control. Any party who fails
or refuses to submit to arbitration following a demand by any other party shall bear all costs and
expenses incurred by such other party in compelling arbitration of any dispute. Nothing contained
herein shall be deemed to be a waiver by any party that is a bank of the protections afforded to it
under 12 U.S.C. §91 or any similar applicable state law.

(c) No Waiver of Provisional Remedies, Self-Help and Foreclosure. The arbitration requirement does
not limit the right of any party to (i) foreclose against real or personal property collateral;
(ii) exercise self-help remedies relating to collateral or proceeds of collateral such as setoff or
repossession; or (iii) obtain provisional or ancillary remedies such as replevin, injunctive
relief, attachment or the appointment of a receiver, before during or after the pendency of any
arbitration proceeding. This exclusion does not constitute a waiver of the right or obligation of
any party to submit any dispute to arbitration or reference hereunder, including those arising from
the exercise of the actions detailed in sections (i), (ii) and (iii) of this paragraph.

(d) Arbitrator Qualifications and Powers. Any arbitration proceeding in which the amount in
controversy is $5,000,000.00 or less will be decided by a single arbitrator selected according to
the Rules, and who shall not render an award of greater than $5,000,000.00. Any dispute in which
the amount in controversy exceeds $5,000,000.00 shall be decided by majority vote of a panel of
three arbitrators; provided however, that all three arbitrators must actively participate in all
hearings and deliberations. The arbitrator will be a neutral attorney licensed in, or a neutral
retired judge of the state or federal judiciary of the state in which the arbitration proceeding
takes place, in either case with a minimum of ten years experience in the substantive law
applicable to the subject matter of the dispute to be arbitrated. The arbitrator will determine
whether or not an issue is arbitratable and will give effect to the statutes of limitation in
determining any claim. In any arbitration proceeding the arbitrator will decide (by documents only
or with a hearing at the arbitrator’s discretion) any pre-hearing motions which are similar to
motions to dismiss for failure to state a claim or motions for summary adjudication. The
arbitrator shall resolve all disputes in accordance with the substantive law of Minnesota and may
grant any remedy or relief that a court of such state could order or grant within the scope hereof
and such ancillary relief as is necessary to make effective any award. The arbitrator shall also
have the power to award recovery of all costs and fees, to impose sanctions and to take such other
action as the arbitrator deems necessary to the same extent a judge could pursuant to the Federal
Rules of Civil Procedure, the Minnesota Rules of Civil Procedure or other applicable law. Judgment
upon the award rendered by the arbitrator may be entered in any court having jurisdiction. The
institution and maintenance of an action for judicial relief or pursuit of a provisional or
ancillary remedy shall not constitute a waiver of the right of any party, including the plaintiff,
to submit the controversy or claim to arbitration if any other party contests such action for
judicial relief.

(e) Discovery. In any arbitration proceeding discovery will be permitted in accordance with the
Rules. All discovery shall be expressly limited to matters directly relevant to the dispute being
arbitrated and must be completed no later than 20 days before the hearing date and within 180 days
of the filing of the dispute with the AAA. Any requests for an extension of the discovery periods,
or any discovery disputes, will be subject to final determination by the arbitrator upon a showing
that the request for discovery is essential for the party’s presentation and that no alternative
means for obtaining information is available.

(f) Class Proceedings and Consolidations. The resolution of any dispute arising pursuant to the
terms of this Agreement shall be determined by a separate arbitration proceeding and such dispute
shall not be consolidated with other disputes or included in any class proceeding.

(g) Payment of Arbitration Costs And Fees. The arbitrator shall award all costs and expenses of
the arbitration proceeding.

5

 

(h) Miscellaneous. To the maximum extent practicable, the AAA, the arbitrators and the parties
shall take all action required to conclude any arbitration proceeding within 180 days of the filing
of the dispute with the AAA. No arbitrator or other party to an arbitration proceeding may
disclose the existence, content or results thereof, except for disclosures of information by a
party required in the ordinary course of its business or by applicable law or regulation. If more
than one agreement for arbitration by or between the parties potentially applies to a dispute, the
arbitration provision most directly related to the documents between the parties or the subject
matter of the dispute shall control. This arbitration provision shall survive termination,
amendment or expiration of any of the documents or any relationship between the parties.

6exv10w7

Exhibit 10.7

Swisher Hygiene

Vehicle Lease Financing Proposal

August, 2011

Under the Lease and Fleet Management Services Agreement(s) between Swisher Hygiene, Inc. and it
Subsidiaries (collectively, the “Master Lease Agreements”) and Automotive Rentals, Inc. (“ARI”),
ARI agrees to provide Swisher Hygiene, Inc. and its subsidiaries an additional line of credit of
$25,000,000 for vehicle lease funding needs and fleet management programs (maintenance management
and fuel purchasing) under the following terms:

	•	 	Cars and Light Duty Trucks (standard cargo vans, pick-up trucks, SUV’s, cars)

	 	•	 	Approved maximum lease terms: 50 months

	•	 	Sprinter Vans and Medium Duty Trucks

	 	•	 	Approved maximum lease terms: 60 months

	•	 	Buyout of Choice Environmental Fleet

	 	•	 	ARI is willing to execute a sale-leaseback at a percentage of market value as
published in recent fleet audit reports. Rate to be determined, if required, and is
based upon expected useful life, lease term, and vehicle types.

	•	 	Choice Environmental Fleet

	 	•	 	ARI’s primary interest is in providing fleet management services (licensing and
compliance, maintenance management, etc.).

	 	•	 	Credit facility required for these programs is applied to total capacity of
$25,000,000.

ARI’s extension of this line of credit is based upon the current financial condition of Swisher
Hygiene, Inc. as stated in Swisher Hygiene’s most recently filed quarterly and audited annual
financial statements and its continued compliance with the terms of the Master Lease Agreements.

	 	 	 	 	 
	SWISHER HYGIENE, INC. 

 	 
	By:  	/s/ Thomas Aucamp
 	 
	Title: 	EVP 	 
	Witness: 	/s/ Peggy W. Matte 	 
	Date: 	8/12/11 	 
	 

	 	 	 	 	 
	AUTOMOTIVE RENTALS, INC.

 	 
	By:  	/s/ Daniel Willard
 	 
	Title: 	Director Financial Services 	 
	Witness: 	 	 
	Date: 	8/12/11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}]]