Exhibit 10.7
Under the Lease and Fleet Management Services Agreement(s) between Xxxxxxx Hygiene, Inc. and it
Subsidiaries (collectively, the “Master Lease Agreements”) and Automotive Rentals, Inc. (“ARI”),
XXX agrees to provide Xxxxxxx 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:
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Cars and Light Duty Trucks (standard cargo vans, pick-up trucks, SUV’s, cars) |
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Approved maximum lease terms: 50 months |
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Sprinter Vans and Medium Duty Trucks |
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Approved maximum lease terms: 60 months |
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Buyout of Choice Environmental Fleet |
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XXX 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. |
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Choice Environmental Fleet |
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ARI’s primary interest is in providing fleet management services (licensing and
compliance, maintenance management, etc.). |
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Credit facility required for these programs is applied to total capacity of
$25,000,000. |
XXX’s extension of this line of credit is based upon the current financial condition of Xxxxxxx
Hygiene, Inc. as stated in Xxxxxxx Hygiene’s most recently filed quarterly and audited annual
financial statements and its continued compliance with the terms of the Master Lease Agreements.
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XXXXXXX HYGIENE, INC.
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| By: |
/s/ Xxxxxx Xxxxxx
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| Title: |
EVP |
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| Witness: |
/s/ Xxxxx X. Xxxxx |
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| Date: |
8/12/11 |
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AUTOMOTIVE RENTALS, INC.
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| By: |
/s/ Xxxxxx Xxxxxxx
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| Title: |
Director Financial Services |
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| Witness: |
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| Date: |
8/12/11 |
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