def14a
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
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Filed by the Registrant
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Filed by a Party other than the Registrant:
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Check the appropriate box:
o Preliminary Proxy Statement
o Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
x Definitive Proxy Statement
o Definitive Additional Materials
o Soliciting Material Pursuant to ss.240.14a-12
Swisher Hygiene Inc.
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
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SWISHER HYGIENE INC.
4725 Piedmont Row Dr.
Suite 400
Charlotte, NC 28210
April 11, 2011
Dear Fellow Swisher Hygiene Stockholder:
We are pleased to invite you to join us at the 2011 Annual
Meeting of Stockholders of Swisher Hygiene Inc. to be held at
9:00 a.m. Eastern Time on Thursday, May 5, 2011
in the Panorama Ballroom at the Hyatt Regency Pier 66, located
at 2301 Southeast
17th
Street Causeway, Fort Lauderdale, Florida 33316.
The accompanying Notice of Annual Meeting and Proxy Statement
describes the specific matters to be voted upon at the Annual
Meeting. We also will report on our progress and provide an
opportunity for you to ask questions of general interest.
Whether you own a few or many shares of Swisher Hygiene stock
and whether or not you plan to attend the Annual Meeting in
person, it is important that your shares be represented at the
Annual Meeting. Your vote is important and we ask that you
please cast your vote as soon as possible.
The Board of Directors recommends that you vote FOR the
election of all the director nominees, FOR approval of an
amendment to our certificate of incorporation to increase the
authorized number of shares of common stock from
400,000,000 shares to 600,000,000 shares, FOR
approval of an amendment to our certificate of incorporation
to authorize 10,000,000 shares of blank check
preferred stock, FOR approval of an amendment to our
certificate of incorporation to permit stockholders to act by
written consent in certain cases, FOR approval of the
Amended and Restated Swisher Hygiene Inc. 2010 Stock Incentive
Plan and ratification of awards previously granted under the
Plan, FOR approval of the Swisher Hygiene Inc. Senior
Executive Officers Performance Incentive Bonus Plan, FOR
the non-binding advisory approval of the compensation of our
named executive officers (Say on Pay), and for 3
YEARS in the non-binding advisory vote regarding the
frequency of future Say on Pay votes. Please refer
to the accompanying Proxy Statement for detailed information on
each of the proposals and the Annual Meeting.
We look forward to seeing you on May 5, 2011 in
Fort Lauderdale.
Sincerely,
Steven R. Berrard
Director, President and
Chief Executive Officer
SWISHER HYGIENE INC.
4725 Piedmont Row Dr.
Suite 400
Charlotte, NC 28210
NOTICE OF
THE 2011 ANNUAL MEETING OF STOCKHOLDERS
To Stockholders of Swisher Hygiene Inc.:
The 2011 Annual Meeting of Stockholders of Swisher Hygiene Inc.
will be held at 9:00 a.m. Eastern Time on Thursday,
May 5, 2011 in the Panorama Ballroom at the Hyatt Regency
Pier 66, located at 2301 Southeast
17th
Street Causeway, Fort Lauderdale, Florida 33316 for the
following purposes, as more fully described in the accompanying
proxy statement:
(1) To elect eight directors, each for a term expiring at
the next Annual Meeting or until their successors are duly
elected and qualified;
(2) To approve an amendment to our certificate of
incorporation to increase the authorized number of shares of
common stock from 400,000,000 to 600,000,000;
(3) To approve an amendment to our certificate of
incorporation to authorize 10,000,000 shares of blank
check preferred stock;
(4) To approve an amendment to our certificate of
incorporation to permit stockholders to act by written consent
in certain cases;
(5) To approve the Amended and Restated Swisher Hygiene
Inc. 2010 Stock Incentive Plan and ratify awards previously
granted under the Plan;
(6) To approve the Swisher Hygiene Inc. Senior Executive
Officers Performance Incentive Bonus Plan;
(7) To obtain non-binding advisory approval of the
compensation of our named executive officers (Say on
Pay);
(8) To obtain non-binding advisory approval of three years
as the frequency of future Say on Pay votes; and
(9) To transact any other business that is properly
presented at the Annual Meeting or any adjournments or
postponements of the Annual Meeting.
Only stockholders of record as of 5:00 p.m. Eastern Time on
March 21, 2011, the record date, are entitled to receive
notice of the Annual Meeting and to vote at the Annual Meeting
or any adjournments or postponements of the Annual Meeting.
We cordially invite you to attend the Annual Meeting in person.
Even if you plan to attend the Annual Meeting, we ask that
you please cast your vote as soon as possible. As more fully
described in the accompanying proxy statement, you may revoke
your proxy and reclaim your right to vote at any time prior to
its use.
By Order of the Board of Directors,
Thomas Aucamp
Executive Vice President and Secretary
April 11, 2011
IMPORTANT
NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE
ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON MAY 5, 2011
The accompanying proxy statement and the 2010 Annual Report on
Form 10-K
are available at
http://www.swisherhygiene.com
PROXY
STATEMENT
TABLE OF
CONTENTS
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PROXY
STATEMENT
This Proxy Statement contains information relating to the
solicitation of proxies by the Board of Directors (the
Board) of Swisher Hygiene Inc. (Swisher
Hygiene or the Company) for use at our 2011
Annual Meeting of Stockholders (Annual Meeting). Our
Annual Meeting will be held at 9:00 a.m. Eastern Time
on Thursday, May 5, 2011 in the Panorama Ballroom at the
Hyatt Regency Pier 66, located at 2301 Southeast
17th
Street Causeway, Fort Lauderdale, Florida 33316. If you
will need directions to the Annual Meeting, or if you require
special assistance at the Annual Meeting because of a
disability, please contact Ms. Amy Simpson at
(704) 602-7116.
Only stockholders of record as of 5:00 p.m. Eastern Time on
March 21, 2011 (the Record Date) are entitled
to receive notice of the Annual Meeting and to vote at the
Annual Meeting or any adjournments or postponements of the
Annual Meeting. As of the Record Date, there were
127,875,427 shares of Swisher Hygiene common stock issued
and outstanding and entitled to vote at the Annual Meeting. This
proxy statement and form of proxy are first being mailed to
stockholders on or about April 11, 2011.
QUESTIONS
AND ANSWERS ABOUT OUR ANNUAL MEETING
What is
the purpose of our 2011 Annual Meeting?
Our 2011 Annual Meeting will be held for the following purposes:
(1) To elect eight directors, each for a term expiring at
the next Annual Meeting or until their successors are duly
elected and qualified. We refer to this as the Director
Election Proposal.
(2) To approve an amendment to our certificate of
incorporation to increase the authorized number of shares of
common stock from 400,000,000 to 600,000,000. We refer to this
as the Authorized Common Stock Proposal.
(3) To approve an amendment to our certificate of
incorporation to authorize 10,000,000 shares of blank
check preferred stock. We refer to this as the
Preferred Stock Proposal.
(4) To approve an amendment to our certificate of
incorporation to permit stockholders to act by written consent
in certain cases. We refer to this as the Stockholder
Consent Proposal.
(5) To approve the Amended and Restated Swisher Hygiene
Inc. 2010 Stock Incentive Plan and ratify awards previously
granted under the Plan. We refer to this as the Stock
Incentive Plan Proposal.
(6) To approve the Swisher Hygiene Inc. Senior Executive
Officers Performance Incentive Bonus Plan. We refer to this as
the Performance Incentive Plan Proposal.
(7) To obtain non-binding advisory approval of the
compensation of our named executive officers. We refer to this
as the Say on Pay Proposal.
(8) To obtain non-binding advisory approval of three years
as the frequency of future Say on Pay votes. We
refer to this as the Frequency of Say on Pay
Proposal; and
(9) To transact any other business that is properly
presented at the Annual Meeting or any adjournments or
postponements of the Annual Meeting.
In addition, senior management will report on our business and
respond to your questions of general interest regarding the
Company.
How can I
attend the Annual Meeting?
You are entitled to attend the Annual Meeting only if you were a
Swisher Hygiene stockholder as of the Record Date or you hold a
valid proxy for the Annual Meeting. You should be prepared to
present photo identification for admittance. If your shares are
held by a brokerage firm, bank, or a trustee, you should provide
proof of beneficial ownership as of the Record Date, such as a
bank or brokerage account statement or
other similar evidence of ownership. Even if you plan to attend
the Annual Meeting, please cast your vote as soon as possible.
What are
the voting rights of Swisher Hygiene stockholders?
Each stockholder is entitled to one vote on each of the eight
director nominees and one vote on each other matter properly
presented at the Annual Meeting for each share of common stock
owned by that stockholder on the Record Date.
What
constitutes a quorum?
The attendance, in person or by proxy, of at least a majority of
the shares entitled to vote at the Annual Meeting is necessary
to constitute a quorum with respect to all matters presented. If
you submit a properly executed proxy or voting instruction card
or properly cast your vote via fax or by the Internet, your
shares will be considered part of the quorum, even if you
abstain from voting or withhold authority to vote as to a
particular proposal. We also will consider as present for
purposes of determining whether a quorum exists any shares
represented by broker non-votes.
What are
broker non-votes?
Broker non-votes occur when shares held by a
brokerage firm are not voted with respect to a proposal because
the firm has not received voting instructions from the
stockholder and the firm does not have the authority to vote the
shares in its discretion. Under the rules of The NASDAQ Stock
Market LLC (NASDAQ), brokerage firms have the
authority to vote their customers shares on certain
routine matters for which they do not receive voting
instructions. Under recent NASDAQ rules changes, brokers no
longer have the discretion to vote on the election of directors.
Accordingly, at this years annual meeting, in the event
that a brokerage firm does not receive voting instructions from
a stockholder, such stockholders shares will not be voted,
and will be considered broker non-votes, with
respect to the Director Election Proposal, Authorized Common
Stock Proposal, Preferred Stock Proposal, Stockholder Consent
Proposal, Stock Incentive Plan Proposal, Performance Incentive
Plan Proposal, Say on Pay Proposal and Frequency of Say on Pay
Proposal.
Will my
shares be voted if I do not provide my proxy?
If your shares are held by a brokerage firm and you do not
provide the firm specific voting instructions, such firm will
not have the authority to vote your shares, and your
shares will not be voted, and will be considered broker
non-votes, with respect to the Director Election Proposal,
Authorized Common Stock Proposal, Preferred Stock Proposal,
Stockholder Consent Proposal, Stock Incentive Plan Proposal,
Performance Incentive Plan Proposal, Say on Pay Proposal and
Frequency of Say on Pay Proposal. Therefore, we urge you to
provide voting instructions so that your shares will be voted.
If you hold your shares directly in your own name, your shares
will not be voted unless you provide a proxy or fill out a
written ballot in person at the Annual Meeting.
How do I
vote?
You can vote in any of the following ways. Please check your
proxy card or contact your broker for voting instructions.
To vote by mail:
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Mark, sign and date your proxy card or voting instruction
card; and
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If you are a registered holder, return the proxy card to Equity
Financial Trust Company, Proxy Department, 200 University
Avenue,
4th
Floor, Toronto, Ontario M5H 4H1 by 11:59 p.m. Eastern Daylight
Time on May 4, 2011; or
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If you hold your shares in street name, return the voting
instruction card to the address indicated thereon.
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To vote by facsimile:
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Mark, sign and date your proxy card or voting instruction
card; and
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If you are a registered holder, fax the proxy card to
(416)595-9593 by 11:59 p.m. Eastern Daylight Time on May 4,
2011; or
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If you hold your shares in street name, fax the voting
instruction card to the fax number indicated thereon.
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To vote using the Internet:
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Have your proxy card or voting instruction card in hand; and
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If you are a registered holder, log on to the Internet and visit
www.voteproxyonline.com, by 11:59 p.m. Eastern Daylight Time on
May 4, 2011 and follow the instructions provided; or
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If you hold your shares in street name, log on to the website
provided on the voting instruction card and follow the
instructions provided.
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To vote in person:
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If you are a registered holder, attend our Annual Meeting, bring
valid photo identification, and deliver your completed proxy
card or ballot in person; or
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If you hold your shares in street name, attend our
Annual Meeting, bring valid photo identification, and obtain a
legal proxy from your bank or broker to vote the shares that are
held for your benefit, attach it to your completed proxy card
and deliver it in person.
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Can I
change my vote after I have voted?
You may revoke your proxy and change your vote at any time
before the final vote at the meeting. You may vote again on a
later date via fax or on the Internet, by signing and mailing a
new proxy card with a later date, or by attending the meeting
and voting in person (only your latest proxy submitted prior to
the meeting will be counted). However, your attendance at the
Annual Meeting will not automatically revoke your proxy unless
you vote again at the meeting or specifically request in writing
that your prior proxy be revoked.
What vote
is required to approve each proposal at the Annual
Meeting?
Proposal 1
Director Election Proposal.
The vote required to elect our eight (8) directors, each
for a term expiring at the next Annual Meeting or until their
successors are duly elected and qualified, is a plurality of the
votes cast at the Annual Meeting. Withheld votes and broker
non-votes will have no effect on the election of directors.
Proposal 2
Authorized Common Stock Proposal.
The vote required to approve the Authorized Common Stock
Proposal is a majority of the outstanding shares of our common
stock. Abstentions will have the same effect as a vote against
this proposal.
Proposal 3
Preferred Stock Proposal.
The vote required to approve the Preferred Stock Proposal is a
majority of the outstanding shares of our common stock.
Abstentions and broker non-votes will have the same effect as a
vote against this proposal.
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Proposal 4
Stockholder Consent Proposal.
The vote required to approve the Stockholder Consent Proposal is
a majority of the outstanding shares of our common stock.
Abstentions will have the same effect as a vote against this
proposal.
Proposal 5
Stock Incentive Plan Proposal.
The vote required to approve the Stock Incentive Plan Proposal
and ratify awards previously granted under the Plan is a
majority of the shares of our common stock which are present in
person or by proxy and entitled to vote thereon. Abstentions
will have the same effect as a vote against this proposal.
Broker non-votes will have no effect on this proposal.
Proposal 6
Performance Incentive Plan Proposal.
The vote required to approve the Performance Incentive Plan
Proposal is a majority of the shares of our common stock which
are present in person or by proxy and entitled to vote thereon.
Abstentions will have the same effect as a vote against this
proposal. Broker non-votes will have no effect on this proposal.
Proposal 7
Say on Pay Proposal.
The vote required to approve the Say on Pay Proposal is a
majority of the shares of our common stock which are present in
person or by proxy and entitled to vote thereon. Abstentions
will have the same effect as a vote against this proposal.
Broker non-votes will have no effect on this proposal.
Proposal 8
Frequency of Say on Pay Proposal.
Stockholders may indicate whether they would prefer that we
conduct future advisory votes on executive compensation every
one, two, or three years, and the Board and the Compensation
Committee will take into account the outcome of the vote when
considering how frequently to seek an advisory vote on Say on
Pay in future years. Stockholders may, if they wish, abstain
from casting a vote on this proposal.
How does
the Board recommend I vote on the proposals?
The Board recommends that you vote:
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FOR Proposal 1: the Director Election Proposal;
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FOR Proposal 2: the Authorized Common Stock Proposal;
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FOR Proposal 3: the Preferred Stock Proposal;
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FOR Proposal 4: the Stockholder Consent Proposal;
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FOR Proposal 5: the Stock Incentive Plan Proposal;
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FOR Proposal 6: the Performance Incentive Plan
Proposal;
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FOR Proposal 7: the Say on Pay Proposal; and
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3 YEARS on Proposal 8: the Frequency of Say on Pay
Proposal.
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How will
the persons named as proxies vote?
If you complete and submit a proxy, the persons named as proxies
will follow your voting instructions. If you submit a proxy but
do not provide instructions or if your instructions are unclear,
the persons named as proxies will vote your shares in accordance
with the recommendations of the Board, as set forth above.
With respect to any other proposal that properly comes before
the Annual Meeting, the persons named as proxies will vote as
recommended by our Board or, if no recommendation is given, in
their own discretion.
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Who will
pay for the cost of soliciting proxies?
We will pay for the cost of soliciting proxies, and we have
retained Georgeson Inc. to assist with the solicitation of
proxies for a fee not to exceed $7,000, plus reimbursement for
out-of-pocket
expenses. Our directors, officers, and other employees, without
additional compensation, may also solicit proxies personally or
in writing, by telephone,
e-mail, or
otherwise. As is customary, we will reimburse brokerage firms,
fiduciaries, voting trustees, and other nominees for forwarding
our proxy materials to each beneficial owner of common stock
held of record by them.
PROPOSAL 1:
DIRECTOR ELECTION PROPOSAL
Our Board currently consists of eight members. On
November 1, 2010, Swisher Hygiene redomiciled to Delaware
from Canada, where it had been a publicly-traded corporation,
listed on the Toronto Stock Exchange under the name CoolBrands
International Inc. (CoolBrands). On November 2,
2010, CoolBrands Nevada, Inc., a wholly-owned subsidiary of
Swisher Hygiene merged with and into Swisher International, Inc.
(Swisher International), with Swisher International
continuing as the surviving corporation (the
Merger). In accordance with the merger agreement by
and among CoolBrands, CoolBrands International (Nevada), Inc.,
Swisher International and Steven R. Berrard (the Merger
Agreement), the former shareholders of Swisher
International appointed five of the members of our Board
(Messrs. Huizenga, Berrard, Bush, Rodriguez and
OConnor) and the former stockholders of CoolBrands
appointed three of the members of our Board
(Messrs. Braley, Prussky and Serruya). Each of our current
directors was appointed as members of the Board on
November 1, 2010, except for Messrs. Hudson and Pruitt
who were appointed members of the Board effective
January 28, 2011 by our Board upon the recommendation of
the Nominating and Corporate Governance Committee, after
identification by Mr. Huizenga based on his personal
knowledge of Messrs. Hudsons and Pruitts
business experience. Messrs. Hudson and Pruitt filled the
vacancies resulting from Ray Rodriguezs and James
OConnors resignations as directors of Swisher
Hygiene.
Upon the recommendation of our Nominating and Corporate
Governance Committee, our Board has nominated the eight persons
listed below to stand for election for a new term expiring at
the 2012 Annual Meeting of Stockholders or until their
successors are duly elected and qualified. Each nominee listed
below is currently serving as a director and is willing and able
to serve as a director of Swisher Hygiene.
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Current Position
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with Swisher
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Nominee
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Age
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Hygiene
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Director Since(1)
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H. Wayne Huizenga
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Chairman
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2010
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Steven R. Berrard
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President, Chief Executive Officer and Director
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2004
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David Braley
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Director
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2010
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John Ellis Bush
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Director
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2010
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Harris W. Hudson
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Director
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2011
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William D. Pruitt
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Director
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2011
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David Prussky
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Director
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2010
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Michael Serruya
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Director
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2010
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Except for Messrs. Hudson and Pruitt, all directors were
appointed on November 1, 2010 in connection with the
Merger. Mr. Berrard has served as a director of Swisher
International since 2004. Mr. Prussky served an initial
term as a director of CoolBrands from 1994 to 1998 and rejoined
the CoolBrands board of directors in February 2010.
Mr. Serruya served as a director of CoolBrands since 1994. |
We have set forth below certain information regarding each
nominee, including the specific experience, qualifications,
attributes, or skills that contributed to the Boards
conclusion that such nominee should serve as a director.
5
Directors
H. Wayne
Huizenga
Chairman
Mr. Huizenga has been an investor in and stockholder of
Swisher International, which we acquired in the Merger, since
2004. Over his 39 year career, he has also served as an
executive officer and director of several public and private
companies. Mr. Huizenga co-founded Waste Management, Inc.
in 1971, which he helped build into the worlds largest
integrated solid waste services company. Mr. Huizenga has
served as Vice Chairman of Viacom Inc. and also served as
Chairman and Chief Executive Officer of Blockbuster
Entertainment Group, a division of Viacom, which he helped to
grow from a small retail chain into the worlds largest
video store operator. Mr. Huizenga has served as Chairman
and Chief Executive Officer of Boca Resorts, Inc. until its
acquisition by The Blackstone Group, as well as AutoNation,
Inc., a leading North American automotive retail company. He has
also served as Chairman of Republic Services, Inc. and Extended
Stay America, Inc.
Mr. Huizenga is an experienced former executive officer and
director of public companies with the skills necessary to serve
as Chairman of the Board. Over his
39-year
career, Mr. Huizenga has founded and developed multiple
companies into industry leaders. As a member of the board of
directors of several public companies, Mr. Huizenga has
developed knowledge and experience leading public companies from
the early stages of development to industry leaders in various
service industries. Mr. Huizenga also provides substantial
management experience gained from his years as an executive
officer of Waste Management, Inc., Blockbuster Entertainment
Group, AutoNation, Inc., and Boca Resorts, Inc.
Steven R.
Berrard
Director,
President and Chief Executive Officer
Mr. Berrard has served as Chief Executive Officer and a
director of Swisher International, which we acquired in the
Merger, since 2004. Mr. Berrard is currently a director and
Audit and Compensation Committee member of Walter Investment
Management Corp., and director of Pivotal Fitness.
Mr. Berrard served as the Managing Partner of private
equity fund New River Capital Partners, which he co-founded
in 1997, from 1997 to 2011. Throughout most of the 1980s,
Mr. Berrard served as President of Huizenga Holdings, Inc.
as well as in various positions with subsidiaries of Huizenga
Holdings. He has served as Chief Executive Officer of
Blockbuster Entertainment Group (a division of Viacom, Inc.),
Chief Executive Officer and Chairman of Jamba, Inc. (parent
company of Jamba Juice Company), and co-founded and served as
co-Chief Executive Officer of retail automotive industry leader
AutoNation, Inc. Mr. Berrard has served as a director of
numerous public and private companies including Viacom, Inc.,
AutoNation, Inc., Boca Resorts, Inc., Birmingham Steel Inc.,
Blockbuster Entertainment Group, Republic Industries Inc. and
HealthSouth Corp.
Mr. Berrard is an experienced executive officer and
director of public companies with relevant industry knowledge
and skills necessary to serve as a director. Mr. Berrard
developed the relevant industry experience and expertise while
serving as the Chief Executive Officer and director of the
company over the last six years. He combines this experience and
expertise with experience as a public company director through
his board memberships at Jamba, Inc., Walter Investment
Management Corp., HealthSouth Corp., Birmingham Steel Inc., Boca
Resorts, Inc. and Viacom, Inc. Mr. Berrard also has
experience and knowledge leading public companies from the early
stages of development to the position of an industry leader
based on his work with AutoNation, Inc., Republic Industries
Inc. and Blockbuster Entertainment Group.
Senator
David Braley
Director
Senator Braley was appointed to the Canadian Senate in May 2010.
He is a highly respected Canadian entrepreneur with numerous
business interests including real estate development, and has
extensive experience leading both private operations and sports
franchises. Senator Braley has been the owner and president of
Orlick Industries Limited, an automotive die cast and machining
organization, since 1969 and is the owner of
6
the B.C. Lions and the Toronto Argonauts of the Canadian
Football League (CFL). Senator Braley was formerly Chairman of
the Board of Governors and Interim Commissioner of the CFL and
was founding Chairman of the Hamilton Entertainment and
Convention Facilities Inc., operator of several venues in the
city of Hamilton, Ontario.
Senator Braley brings to the Board his experience leading a
private machining organization and multiple sports franchises.
As the owner and President of Orlick Industries Limited, Senator
Braley has experience and knowledge of financial, operational,
and managerial issues faced by private companies. As an owner of
two franchises of the Canadian Football League and as a member
of the Board of Governors, Senator Braley has knowledge and
skills regarding franchise matters.
John
Ellis (Jeb) Bush
Director
Mr. Bush is currently President and Chief Executive Officer
of the consulting firm Jeb Bush and Associates. Mr. Bush
served in that role since June 2007. Mr. Bush served as the
Governor and Secretary of Commerce of the State of Florida from
January 2000 to January 2007. He is an experienced director of
public companies, currently serving as a director of Rayonier
Inc. and Tenet Healthcare Corporation. Mr. Bush also
established and serves as Chairman of both the Foundation for
Excellence in Education, a
not-for-profit
charitable organization, and The Foundation for Floridas
Future, a
not-for-profit
public policy organization.
Mr. Bush is an experienced director of public companies
with the skills necessary to serve as a director. As a member of
the board of directors of public companies and former Governor
of the State of Florida, Mr. Bush has developed knowledge
and experience of financial, operational and managerial matters.
Harris W.
Hudson
Director
Harris W. Hudson is currently chairman and owner of Hudson
Capital Group, an investment company located in
Fort Lauderdale, Florida founded by Mr. Hudson in
1997. Mr. Hudson most recently served as Vice Chairman,
Secretary and a director of Republic Services Inc. from 1995 to
2008. Prior to that period, he served in various executive roles
from 1995 to 1998 with Republic Service Inc.s former
parent company (then known as Republic Waste Industries, Inc.),
including as Chairman of its Solid Waste Group and its
President. From 1983 to 1995, Mr. Hudson was Chairman, CEO
and President of Hudson Management Corporation, a solid waste
collection company that he founded and later merged with
Republic Waste Industries. Mr. Hudson also served as Vice
President of Waste Management of Florida, Inc. and its
predecessor from 1964 until 1982.
Mr. Hudson is an experienced public company officer and
director. As a result of his experiences, Mr. Hudson has a
thorough knowledge and understanding of financial, operational,
compensatory and other issues faced by a public company.
William
D. Pruitt
Director
William D. Pruitt has served as general manager of Pruitt
Enterprises, LP. and president of Pruitt Ventures, Inc. since
2000. Mr. Pruitt has been an independent board member of
the MAKO Surgical Corp., a developer of robots for knee and hip
surgery, since 2008, and is a member of the MAKO audit
committee. Mr. Pruitt served as an independent board member
of The PBSJ Corporation, an international professional services
firm, from 2005 to 2010. Mr. Pruitt served as chairman of
the audit committee of KOS Pharmaceuticals, Inc., a fully
integrated specialty pharmaceutical company, from 2004 until its
sale in 2006. He was also chairman of the audit committee for
Adjoined Consulting, Inc., a full-service management consulting
firm, from 2000 until it was merged into Kanbay International, a
global consulting firm, in 2006. From 1980 to 1999,
Mr. Pruitt served as the managing partner for the Florida,
Caribbean and Venezuela operations of the independent auditing
firm of Arthur Andersen LLP. Mr. Pruitt holds a Bachelor of
Business Administration from the University of Miami and is a
Certified Public Accountant (inactive).
7
Mr. Pruitt is an experienced director of public companies
with the skills necessary to serve as a director.
Mr. Pruitt also has extensive experience in financial
matters as a certified public accountant and as a former
managing partner of an accounting firm.
David
Prussky
Director
Mr. Prussky was a director and Chair of the Audit Committee
of CoolBrands. He was an original director of the predecessor to
CoolBrands, Yogen Früz World-Wide Inc. Mr. Prussky has
served as an investment banker for Patica Securities Limited
since August 2002. Mr. Prussky has served as director of
numerous public and private companies over the past
16 years, including Carfinco Income Fund, Canadas
largest public specialty auto finance business, and Lonestar
West Inc. Mr. Prussky is also a director of exempt market
dealer Patica Securities Limited which specializes in financing
junior growth and mid-market businesses, and acts as a director
or adviser to several private companies, having helped many grow
from early-stage to significant operating entities.
Mr. Prussky is an experienced director of public companies
with the skills necessary to serve as a director. He has helped
build numerous public and private entities from the early stages
to significant operating entities.
Michael
Serruya
Director
Mr. Serruya is an experienced director and executive
officer of public companies. He is co-founder, past Chairman,
President, Chief Executive Officer and director of CoolBrands.
Mr. Serruya served as Co-President and Co-Chief Executive
Officer of CoolBrands from 1994 to 2000, as Co-Chairman of
CoolBrands in 2005, as President and Chief Executive Officer of
CoolBrands from 2006 until the Merger in November 2010.
Mr. Serruya served as a director of CoolBrands since 1994
until the Merger in November 2010. Mr. Serruya was also
President, Chief Executive Officer and Chairman of
CoolBrands predecessor, Yogen Früz World-Wide Inc. He
is also director of Jamba, Inc. (owner of Jamba Juice Company)
and a director and member of the Audit Committee of Response
Genetics, Inc.
Mr. Serruya is an experienced executive officer and
director of public companies with the skills necessary to serve
as a director. Mr. Serruya has experience leading a
franchise organization. He combines that franchise experience
with licensing and consumer products expertise.
Vote
Required and Recommendation
The Board recommends that you vote FOR the election
of each of the director nominees. The vote required to elect our
eight (8) directors, each for a term expiring at the Annual
Meeting or until their successors are duly elected and
qualified, is a plurality of the votes cast at the Annual
Meeting.
CORPORATE
GOVERNANCE
Corporate
Governance Principles and Code of Ethics
The Board is committed to sound corporate governance principles
and practices. The Boards core principles of corporate
governance are set forth in the Swisher Hygiene Corporate
Governance Principles (the Principles), which were
adopted by the Board in November 2010. In order to clearly set
forth our commitment to conduct our operations in accordance
with our high standards of business ethics and applicable laws
and regulations, the Board also adopted a Code of Business
Conduct and Ethics (Code of Ethics), which is
applicable to all directors, officers and employees. A copy of
the Code of Ethics and the Principles are available on our
corporate website at www.swisherhygiene.com. You also may obtain
a printed copy of the Code of Ethics and Principles by sending a
written request to: Investor Relations, Swisher Hygiene Inc.,
4725 Piedmont Row Drive, Suite 400, Charlotte, North
Carolina 28210.
8
Board of
Directors
The business and affairs of the company are managed by or under
the direction of the Board. Pursuant to our bylaws, the Board
may establish one or more committees of the Board, however
designated, and delegate to any such committee the full power of
the Board, to the fullest extent permitted by law.
The Board intends to have regularly scheduled meetings and at
such meetings our independent directors will meet in executive
session.
The Board held one meeting and took three actions by unanimous
written consent following the Merger during 2010. In 2010, each
person serving as a director attended at least 75% of the total
number of meetings of our Board and any Board committee on which
he or she served.
Our independent directors held one executive sessions without
management present following the Merger during 2010. Our Board
has not appointed a lead independent director; instead the
presiding director for each executive session is rotated among
the Chairs of our Board committees.
Composition. The Board currently consists of
the following eight members: H. Wayne Huizenga, (Chairman);
Steven R. Berrard; David Braley; John Ellis Bush; Harris W.
Hudson; William D. Pruitt; David Prussky, and Michael Serruya.
Messrs. Hudson and Pruitt were appointed as members of the
Board on January 28, 2011 to fill the vacancies resulting
from the resignations of James OConnor and Ramon
Rodriguez. See Directors above for biographical
information regarding the members of the Board.
Orientation and Continuing Education. The
Board will hold a meeting shortly after a new member joins the
Board to provide such new member with an overview of the
responsibilities of the Board and information regarding our
business. The Board will hold meetings, as deemed appropriate,
to provide continuing education to its directors.
Our directors are expected to attend our Annual Meeting of
Stockholders. Any director who is unable to attend our Annual
Meeting is expected to notify the Chairman of the Board in
advance of the Annual Meeting.
Board
Committees
Pursuant to our bylaws, the Board may establish one or more
committees of the Board, however designated, and delegate to any
such committee the full power of the Board, to the fullest
extent permitted by law.
Our Board has established three separately designated standing
committees to assist the Board in discharging its
responsibilities: the Audit Committee, the Compensation
Committee, and the Nominating and Corporate Governance
Committee. The charters for our Board committees set forth the
scope of the responsibilities of that committee. The Board will
assess the effectiveness and contribution of each committee on
an annual basis. These charters are available at
www.swisherhygiene.com, and you may obtain a printed copy
of any of these charters by sending a written request to:
Investor Relations, Swisher Hygiene Inc., 4725 Piedmont Row
Drive, Suite 400, Charlotte, North Carolina 28210.
9
The following table sets forth the current membership of each of
our Boards committees:
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Nominating and
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Corporate
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Audit
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Compensation
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Governance
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Name
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|
Committee
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Committee
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|
Committee
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Steven R. Berrard
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|
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|
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Senator David Braley
|
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*
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|
|
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*
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John Ellis Bush
|
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|
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*
|
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**
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Harris W. Hudson
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|
|
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**
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H. Wayne Huizenga
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|
|
|
|
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William D. Pruitt
|
|
**
|
|
*
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|
|
David Prussky
|
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*
|
|
|
|
*
|
Michael Serruya
|
|
|
|
|
|
|
Audit Committee. The primary function of the
Audit Committee is to assist the Board in fulfilling its
responsibilities by overseeing our accounting and financial
processes and the audits of our financial statements. The
independent auditor is ultimately accountable to the Audit
Committee, as representatives of the stockholders. The Audit
Committee has the ultimate authority and direct responsibility
for the selection, appointment, compensation, retention and
oversight of the work of the companys independent auditor
that is engaged for the purpose of preparing or issuing an audit
report or performing other audit, review or attest services for
the company (including the resolution of disagreements between
management and the independent auditors regarding financial
reporting), and the independent auditor must report directly to
the Audit Committee. The Audit Committee also is responsible for
the review of proposed transactions between the company and
related parties. For a complete description of our Audit
Committees responsibilities, you should refer to the Audit
Committee Charter.
The Audit Committee currently consists of three directors. The
Board has determined that the Audit Committee members have the
requisite independence and other qualifications for audit
committee membership under applicable rules under the Securities
Exchange Act of 1934, as amended (the Exchange Act),
NASDAQ rules, and Canadian securities laws. The Board also has
determined that Mr. Pruitt is an audit committee
financial expert within the meaning of Item 407(d)(5)
of
Regulation S-K
under the Exchange Act. The Audit Committee held one meeting and
took no action by unanimous written consent following the Merger
during 2010. The Audit Committee Report for fiscal year 2010,
which contains a description of the Audit Committees
responsibilities and its recommendation with respect to our
audited consolidated financial statements for the year ended
December 31, 2010, is set forth below.
Compensation Committee. The Board established
a Compensation Committee comprised solely of independent
directors as defined in the NASDAQ rules and Canadian securities
laws. The Compensation Committee held one meeting and took no
action by unanimous written consent following the Merger during
2010. The Compensation Committee currently consists of three
members, Harris W. Hudson, Chairman, John Ellis Bush, and
William D. Pruitt. Messrs. Hudson and Pruitt were appointed
members of the Compensation Committee following James
OConnor and Ramon Rodriguezs resignations from the
Board on January 28, 2011. See the Compensation
Discussion and Analysis below for a discussion of the
Compensation Committees process for determining
compensation and responsibilities.
Nominating and Corporate Governance
Committee. The primary function of the Nominating
and Corporate Governance Committee is to assist the Board in
monitoring and overseeing matters of corporate governance and
selecting, evaluating and recommending to the Board qualified
candidates for election or appointment to the Board. The
Nominating and Corporate Governance Committee currently consists
of three members, Messrs. Bush, Chairman, Braley, and
Prussky. The Board has determined that each of the Nominating
and Corporate Governance Committee members has the requisite
independence for nominating
10
and corporate governance committee membership under applicable
NASDAQ rules and Canadian securities laws. The Nominating and
Corporate Governance Committee held one meeting and took no
action by unanimous written consent following the Merger during
2010. The Nominating and Corporate Governance Committee will
consider all qualified director candidates identified by various
sources, including members of the Board, management and
stockholders. Candidates for directors recommended by
stockholders will be given the same consideration as those
identified from other sources. The Nominating and Corporate
Governance Committee is responsible for reviewing each
candidates biographical information, meeting with each
candidate and assessing each candidates independence,
skills and expertise based on a number of factors. While we do
not have a formal policy on diversity, when considering the
selection of director nominees, the Nominating and Corporate
Governance Committee considers individuals with diverse
backgrounds, viewpoints, accomplishments, cultural background
and professional expertise, among other factors.
Board
Leadership
The Board has no policy regarding the need to separate or
combine the offices of Chairman of the Board and Chief Executive
Officer and instead the Board remains free to make this
determination from time to time in a manner that seems most
appropriate for the Company. Currently, the positions of
Chairman and Chief Executive Officer are separate at Swisher
Hygiene. H. Wayne Huizenga serves as our Chairman and Steven
Berrard serves as our President and Chief Executive Officer. At
this time, the Board believes that this segregation avoids
conflicts that may arise as the result of combining the roles,
and effectively maintains independent oversight of management.
Board
Oversight of Enterprise Risk
The Board is actively involved in the oversight and management
of risks that could affect the Company. This oversight and
management is conducted primarily through the committees of the
Board identified above but the full Board has retained
responsibility for general oversight of risks. The Audit
Committee is primarily responsible for overseeing the risk
management function, specifically with respect to
managements assessment of risk exposures (including risks
related to liquidity, credit, operations and regulatory
compliance, among others), and the processes in place to monitor
and control such exposures. The other committees of the Board
consider the risks within their areas of responsibility. The
Board satisfies its oversight responsibility through full
reports by each committee chair regarding the committees
considerations and actions, as well as through regular reports
directly from officers responsible for oversight of particular
risks within the Company.
Director
Independence
The Board has determined that the following non-employee
directors are independent in accordance with the
NASDAQ rules and Canadian securities laws and have no material
relationship with the Company, except as a director and a
stockholder of the Company: Senator Braley; Mr. Bush;
Mr. Hudson; Mr. Pruitt; and Mr. Prussky. In
determining the independence of each of the non-employee
directors, the Board considered the relationships described
under Related Party Transactions. In each case, the
relationships did not violate NASDAQ listing standards or our
Principles, and the Board concluded that such relationships
would not impair the independence of our non-employee directors.
Compensation
Committee Interlocks and Insider Participation
The 2010 Compensation Committee was comprised of James
OConnor (Chairman), Ramon A. Rodriguez, and John Ellis
Bush. None of these Committee members have ever been an officer
or employee of Swisher Hygiene or any of our subsidiaries and
none of our executive officers has served on the compensation
committee or board of directors of any company of which any of
our other directors is an executive officer.
Related
Party Transactions
As set forth in the Audit Committee Charter, our Audit Committee
must approve all transactions with related persons as described
in Item 404 of
Regulation S-K
under the Exchange Act. The following is a
11
summary of agreements or transactions with parties related to
our directors or us since January 1, 2009. The agreements
or transactions listed below were entered into prior to the
establishment of our Audit Committee, which was established on
November 2, 2010.
Loans
and Advances from Stockholders
We have funded a significant amount of our growth and
development through stockholder loans and advances. From May
2008, through June 2010, we borrowed an aggregate of $21,445,000
from Royal Palm, an affiliate of Mr. Huizenga, pursuant to
an unsecured promissory note (the Royal Palm Note),
which has been amended as additional amounts have been advanced.
The note bears interest at LIBOR plus two basis points. A
schedule of the dates and amounts advanced by Royal Palm
pursuant to the Royal Palm Note through May, 2010 are as follows:
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Principal
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Date of Note
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|
Amount
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05/15/2008
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$
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2,500,000
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09/16/2008
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2,500,000
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03/24/2009
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1,200,000
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06/02/2009
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2,000,000
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04/13/2009
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250,000
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07/10/2009
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595,000
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09/21/2009
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250,000
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10/14/2009
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1,500,000
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12/04/2009
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250,000
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12/09/2009
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5,800,000
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03/25/2010
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2,100,000
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5/26/2010
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2,500,000
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Total
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$
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21,445,000
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In July 2010, Mr. Berrard purchased $10,722,500 of the
total debt, including accrued interest, represented by the Royal
Palm Note. $16,845,000 of the borrowings under the Royal Palm
Note are reported in our audited financial statements as of and
for the year ended December 31, 2009 as a long-term
liability. The aggregate $21,445,000, including $4,600,000
borrowed from Royal Palm during the six months ended
June 30, 2010 was contributed as capital on
November 2, 2010, in connection with the Merger.
Subsequent to June 30, 2010, we borrowed $2,000,000,
$950,000 and $320,000 from Royal Palm on August 9, 2010,
August 31, 2010, and October 25, 2010, respectively,
pursuant to unsecured promissory notes. The notes bear interest
at the short-term Applicable Federal Rate, as adjusted on a
monthly basis. The $2,000,000 note matures on November 2,
2011. The $1,270,000 note matured and was repaid on the closing
date of the Merger.
In November and December 2009, Mr. Berrard advanced
$800,000 to the company pursuant to an unsecured promissory
note. The advance was repaid in March 2010.
Stockholder
Guarantees
During the years ended December 31, 2009 and 2008, we
incurred or assumed $7,954,305 and $240,000, respectively, of
debt to sellers in connection with certain acquisitions. Two of
the seller notes payable, totaling $3,050,000, were secured by
letters of credit, which were guaranteed and secured by certain
assets of Messrs. Huizenga and Berrard. These guarantees
were released as of March 31, 2011.
Our prior revolving credit facilities, which provided for
borrowings in aggregate of up to $25,000,000, were personally
guaranteed for up to $20,000,000 by Mr. Huizenga through
February 28, 2011.
12
HB
Service, LLC
In March 2005, Messrs. Berrard and Huizenga formed HB
Service, LLC to acquire franchises and related businesses under
the Swisher name. Through September 2010, HB Service acquired
and operated 68 former franchises of the company and purchased
nine other related businesses, for an aggregate of $28,593,333.
Effective July 13, 2010, HB Service entered into a
Contribution Agreement with us pursuant to which
Messrs. Huizenga and Berrard contributed their membership
interests in HB Service to Swisher International, at which time
HB Service became a wholly-owned subsidiary of the company.
New
River Capital Partners
During the fiscal year ended December 31, 2010, we paid
$51,300 for training course development and utilization of the
delivery platform from CertiLearn, Inc., the majority of which
is owned by New River Capital Partners a company owned by
Messrs. Berrard, Byrne and Aucamp. In February 2011, we
paid $126,636 to CertiLearn, Inc. to satisfy outstanding accrued
expenses, which expenses were accrued starting in the fiscal
year ended December 31, 2009.
Stockholder
Communications
Communications
with the Company and the Board
Stockholders may communicate with the Company through its
Investor Relations Department by writing to Investor Relations,
Swisher Hygiene Inc., 4725 Piedmont Row Drive, Suite 400,
Charlotte, North Carolina 28210.
Stockholders interested in communicating with our Board, any
Board committee, any individual director, or any group of
directors (such as our independent directors) should send
written correspondence to Swisher Hygiene Inc. Board of
Directors, Attn: General Counsel, 4725 Piedmont Row Drive,
Suite 400, Charlotte, North Carolina 28210.
Stockholder
Proposals for Next Years Annual Meeting
As more specifically provided in our by-laws, no business may be
brought before an Annual Meeting unless it is specified in the
notice of the Annual Meeting or is otherwise brought before the
Annual Meeting by or at the direction of our Board or by a
stockholder entitled to vote who has delivered proper notice to
us not less than 90 days nor more than 120 days before
the first anniversary of the preceding years Annual
Meeting. Accordingly, any stockholder proposal to be considered
at the 2012 Annual Meeting of Stockholders, including
nominations of persons for election to our Board, generally must
be properly submitted to us not earlier than January 11,
2012 nor later than February 10, 2012. Detailed information
for submitting stockholder proposals or nominations of director
candidates will be provided upon written request to the
Secretary of Swisher Hygiene Inc., 4725 Piedmont Row Drive,
Suite 400, Charlotte, North Carolina 28210.
These requirements are separate from the Securities and Exchange
Commissions requirements that a stockholder must meet in
order to have a stockholder proposal included in our proxy
statement for the 2012 Annual Meeting of Stockholders.
Stockholders interested in submitting a proposal for inclusion
in our proxy materials for the 2012 Annual Meeting of
Stockholders may do so by following the procedures set forth in
Rule 14a-8
under the Exchange Act. To be eligible for inclusion in such
proxy materials, stockholder proposals must be received by our
Secretary not later than December 12, 2011.
Stockholder
Director Nominations
The Nominating and Corporate Governance Committee has
established a policy pursuant to which it considers director
candidates recommended by our stockholders. All director
candidates recommended by our stockholders are considered for
selection to the Board on the same basis as if such candidates
were recommended by one or more of our directors or other
persons. To recommend a director candidate for consideration by
our Nominating and Corporate Governance Committee, a stockholder
must submit the recommendation in writing to our Corporate
Secretary not later than 120 calendar days prior to the
anniversary
13
date of our proxy statement distributed to our stockholders in
connection with our previous years annual meeting of
stockholders, and the recommendation must provide the following
information: (i) the name of the stockholder making the
recommendation; (ii) the name of the candidate;
(iii) the candidates resume or a listing of his or
her qualifications to be a director; (iv) the proposed
candidates written consent to being named as a nominee and
to serving as one of our directors if elected; and (v) a
description of all relationships, arrangements, or
understandings, if any, between the proposed candidate and the
recommending stockholder and between the proposed candidate and
us so that the candidates independence may be assessed.
The stockholder or the director candidate also must provide any
additional information requested by our Nominating and Corporate
Governance Committee to assist the Committee in appropriately
evaluating the candidate.
SECTION 16(a)
BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Exchange Act requires that our
directors, executive officers, and persons who beneficially own
10% or more of our stock file with the Securities and Exchange
Commission initial reports of ownership and reports of changes
in ownership of our stock and our other equity securities. To
our knowledge, based solely on a review of the copies of such
reports furnished to us and written representations that no
other reports were required, during the year ended
December 31, 2010, our directors, executive officers, and
greater than 10% beneficial owners complied with all such
applicable filing requirements.
14
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT
The following table sets forth, as of March 21, 2011,
information regarding the beneficial ownership of our common
stock by each director, each named executive officer, all of the
directors and executive officers as a group, and each other
person or entity known to us to be the beneficial owner of more
than five percent of our common stock. Unless noted otherwise,
the corporate address of each person listed below is 4725
Piedmont Row Drive, Suite 400, Charlotte, North Carolina,
28210.
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Amount and
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Nature of
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Beneficial
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Percent of
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Name and Address of Beneficial Owner
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Ownership
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Class(1)
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Directors and Executive Officers:
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H. Wayne Huizenga
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25,005,359
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19.6
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%
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Steven R. Berrard
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25,005,311
|
(2)
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19.6
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%
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Thomas Aucamp
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1,300,265
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(2)
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1.0
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%
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David Braley
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5,194,800
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4.1
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%
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John Ellis Bush
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Thomas Byrne
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1,300,265
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(2)
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1.0
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%
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Hugh H. Cooper
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|
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Harris W. Hudson
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431,250
|
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|
*
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|
William D. Pruitt
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David Prussky
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263,000
|
(3)
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*
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Michael Serruya
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7,672,666
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(4)
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5.8
|
%
|
Directors and Executive Officers as a group (11 persons)
|
|
|
66,172,916
|
(5)
|
|
|
49.6
|
%
|
|
|
|
* |
|
The person beneficially owns less than 1% of Swisher
Hygienes outstanding common stock. |
|
|
|
(1) |
|
Based on 127,875,427 shares of our common stock outstanding
as of March 21, 2011. |
|
|
|
(2) |
|
The shares of common stock held by these executive officers have
been pledged to H. Wayne Huizenga as security for certain
obligations owing pursuant to stock pledge and security
agreements by each executive officer for the benefit of
Mr. Huizenga. |
|
(3) |
|
Consists of 210,000 shares of common stock held by
Mr. Prussky, 33,000 shares of common stock held by
Mr. Prusskys spouse, Erica Prussky, and options to
purchase 20,000 shares of common stock. |
|
(4) |
|
Consists of 133,515 shares of common stock held by
Mr. Serruya, 2,039,151 shares of common stock held by
1082272 Ontario Inc., and warrants to purchase
5,500,000 shares of common stock registered in the name of
Mr. Serruya. Of these warrants, Mr. Serruya is the
beneficial owner of warrants to purchase 299,776 shares of
common stock, and Mr. Serruya holds the balance of such
warrants on behalf of and in trust for various members of the
Serruya family. 1082272 Ontario Inc., an entity owned 50% by
Michael Serruya and 50% by his brother, Aaron Serruya, owns
4,078,301 shares of common stock. Michael Serruya is a
director and President of 1082272 Ontario Inc., and exercises
voting and dispositive power over half the shares of common
stock held by 1082272 Ontario Inc. Aaron Serruya exercises
voting and dispositive power over the other shares of Swisher
Hygiene held by 1082272 Ontario Inc. |
|
(5) |
|
Includes warrants to purchase 5,500,000 shares of common
stock and options to purchase 20,000 shares of common stock. |
CHANGE IN
CONTROL
On November 1, 2010, Swisher Hygiene redomiciled to
Delaware from Canada, where it had been a publicly-traded
corporation, listed on the Toronto Stock Exchange under the name
CoolBrands International, Inc. On November 2, 2010,
CoolBrands Nevada, Inc., a wholly-owned subsidiary of Swisher
Hygiene merged with and into Swisher International, with Swisher
International continuing as the surviving corporation. Upon
15
completion of the Merger on November 2, 2010, the former
shareholders of Swisher International received
57,789,630 shares of Swisher Hygiene Inc. common stock in
exchange for all 1,212,890 shares of Swisher International
common stock, representing, on a fully diluted basis, a 48%
ownership interest in Swisher Hygiene. The former stockholders
of CoolBrands retained 56,225,433 shares of Swisher Hygiene
common stock, representing, on a fully diluted basis, a 52%
ownership interest in Swisher Hygiene. At the effective time of
the Merger, CoolBrands held $61,757,316 in cash, cash
equivalents and short term investments. In accordance with the
Merger Agreement, the former shareholders of Swisher
International appointed five of the members of the Board
(Messrs. Huizenga, Berrard, Bush, Rodriguez and
OConnor) and the former stockholders of CoolBrands
appointed three of the members of the Board
(Messrs. Braley, Prussky and Serruya).
COMPENSATION
COMMITTEE REPORT
The following statement made by our Compensation Committee
does not constitute soliciting material and should not be deemed
filed or incorporated by reference into any filing under the
Securities Act of 1933, as amended, or the Securities Exchange
Act of 1934, as amended, except to the extent that we
specifically incorporate such statement by reference.
The Compensation Committee of the Company has reviewed and
discussed with management the Compensation Discussion and
Analysis required by Item 402(b) of
Regulation S-K
and, based on such review and discussion, the Compensation
Committee recommended to the Board of Directors that the
Compensation Discussion and Analysis be included in this proxy
statement and incorporated by reference in the Companys
Annual Report on
Form 10-K
for the fiscal year ended December 31, 2010.
Compensation Committee:
Harris W. Hudson, Chair
William M. Pruitt
John Ellis Bush
COMPENSATION
DISCUSSION AND ANALYSIS
Overview
This discussion and analysis describes the material elements of
compensation awarded to, earned by, or paid to the named
executive officers of Swisher during 2009 and 2010, and provides
a brief summary of the compensation to be paid to the named
executive officers in 2011. Throughout this analysis, the
individuals who served as the Chief Executive Officer and Chief
Financial Officer during 2009 and 2010, as well as other
individuals included in the Summary Compensation Table below,
are referred to as the named executive officers.
During 2009, Swisher was a private company and its executive
officers consisted of Steven R. Berrard, Thomas Aucamp, Thomas
Byrne, and Hugh H. Cooper. Before the Merger, we did not have an
established Compensation Committee, and all compensation
decisions were made by the Chief Executive Officer. After the
Merger, on November 2, 2010, the Board established a
Compensation Committee comprised of Messrs. James E.
OConnor (Chairman), Ramon A. Rodriguez, and John Ellis
Bush. On January 28, 2011, Messrs. OConnor and
Rodriguez resigned as directors of the Company and members of
the Compensation Committee. On January 28, 2011, Harris W.
Hudson and William D. Pruitt were appointed directors of the
Company and members of the Compensation Committee.
Mr. Hudson currently serves as the Chairman of the
Compensation Committee. The Compensation Committee is
responsible for the oversight, implementation, and
administration of all of the executive compensation plans and
programs after the Merger.
16
Compensation
Policies and Practices for 2009
The core objective of our compensation programs for 2009 was to
secure and retain the services of high quality executives. For
2009, base salary was the principal component of compensation
for the named executive officers. When determining base salary
for 2009, Mr. Berrard did not use any specific formula,
factors, or particular criteria to be met by a named executive
officer and did not assign any relative weight to any factors or
criteria he considered. Rather, Mr. Berrard exercised his
judgment, discretion, and experience with route-based, recurring
revenue businesses and industries by considering all factors he
deemed relevant. In determining base salaries for 2009,
Mr. Berrard considered, the experience, skills, knowledge
and responsibilities of the named executive officers in their
respective roles. Mr. Berrard determined to forgo any
salary during 2009. Base salaries for 2009 for the remaining
named executive officers were $207,692 each.
In 2009, the named executive officers received additional
compensation in the form of vacation, medical, 401(k), and other
benefits generally available to all of our full time employees.
Compensation
Policies and Practices for 2010
The core objectives of our compensation programs for 2010 were
to secure and retain the services of high quality executives and
to provide compensation to our executives that was commensurate
and aligned with our performance and advances both short and
long-term interests of ours and our stockholders. We seek to
achieve these objectives through two principal compensation
programs: (1) a base salary and (2) long-term equity
incentives. Base salaries are designed primarily to attract and
retain talented executives. Grants of equity awards are designed
to provide a strong incentive for achieving long-term results by
aligning interests of our executives with those of our
stockholders, while at the same time encouraging our executives
to remain with the company. The Compensation Committee believes
that our compensation programs for the named executive officers
is appropriately based upon our performance and the performance
and level of responsibility of the executive officer.
Named
Executive Officer Compensation Components for 2010
For 2010, base salary and long-term equity incentive
compensation, were the principal components of compensation for
the named executive officers.
Base
Salary
A significant portion of total compensation for 2010 was
comprised of base salary, which enables us to attract and retain
talented executive management through the payment of reasonable
current income. When determining base salary, Mr. Berrard
did not use any specific formula, factors, or particular
criteria to be met by a named executive officer and did not
assign any relative weight to any factors or criteria he
considered. Rather, Mr. Berrard exercised his judgment,
discretion, and experience with route-based, recurring revenue
businesses and industries by considering all factors he deemed
relevant. In determining base salaries for 2010,
Mr. Berrard considered, the experience, skills, knowledge
and responsibilities of the named executive officers in their
respective roles. During 2010, Mr. Berrard received
$192,308 in salary. Base salaries for 2010 for the remaining
named executive officer were $200,000 for Mr. Cooper,
$203,077 for Mr. Aucamp, and $204,615 for Mr. Byrne.
The Compensation Committee held its first meeting on
November 2, 2010. At this meeting, the Compensation
Committee determined not to modify the executive officers 2010
base salaries.
Long-Term
Equity Incentive Compensation
On November 2, 2010, our Board approved the Swisher Hygiene
Inc. 2010 Stock Incentive Plan to attract, retain, motivate and
reward key officers and employees. The Plan, which is subject to
stockholder approval, initially allowed for the grant of stock
options, restricted stock units and other equity instruments up
to a total of 6,000,000 shares of our common stock. On
February 10, 2011, our Board amended and restated the
Swisher Hygiene Inc. 2010 Stock Incentive Plan. The sole purpose
of the amendment was to increase the
17
total amount of shares of our common stock issuable under the
Plan from 6,000,000 shares to 11,400,000 shares
(representing 8.9% of the issued and outstanding shares as of
March 21, 2011) and to increase the number of such
shares that may be issued in connection with awards, other than
stock options and stock appreciation rights, that are settled in
common stock from 3,000,000 shares to 5,700,000 shares.
Under the Plan, the Board has approved awards of options to
purchase 1,521,825 shares of our common stock (representing
1.2% of the issued and outstanding shares as of March 21,
2011). The options vest in four equal annual installments
beginning on the first anniversary of the grant date and are
exercisable at prices between $4.18 to $6.32 per share. The
options expire in ten years from the date of grant. The Board
has also approved the award of 2,938,602 restricted stock units
(representing 2.3% of the issued and outstanding shares as of
March 21, 2011) at prices between $4.18 and $6.25 per
share. The restricted stock units vest in four equal annual
installments beginning on the first anniversary of the grant
date. Because the Plan is subject to stockholder approval, if
such approval is not obtained, then the recipients will not
receive the awards as granted by the Compensation Committee at
this time.
Among the awards made under the Plan, the Compensation Committee
granted equity awards to our named executive officers as follows:
|
|
|
|
|
|
|
|
|
|
|
Restricted Stock
|
|
Stock
|
Name
|
|
Units
|
|
Options
|
|
Steve Berrard
|
|
|
251,196
|
|
|
|
107,656
|
|
Thomas Byrne
|
|
|
115,550
|
|
|
|
49,522
|
|
Thomas Aucamp
|
|
|
110,526
|
|
|
|
47,368
|
|
Hugh Cooper
|
|
|
122,500
|
|
|
|
52,500
|
|
The Compensation Committees grant of equity awards to the
named executive officers was entirely discretionary, subject to
limitations set by the Plan. Decisions by the Compensation
Committee regarding grants of equity awards to the named
executive officers (other than the Chief Executive Officer) were
made based upon the recommendation of the Chief Executive
Officer, and included the consideration of the executive
officers current position with us, and the executive
officers past and expected future performance. The
Compensation Committee did not use any specific factors, or
particular criteria that was to be met by each executive officer
and did not assign any relative weight to any factors or
criteria it considered when granting equity awards. Rather, the
Compensation Committee exercised its judgment and discretion by
considering all factors that it deemed relevant at the time of
the grants. For example, in determining grants of equity awards
in 2010, the Compensation Committee considered (i) the
executive officers service to the Company during the
months before and after the Merger, (ii) each executive
officers position with the Company, and (iii) each
executive officers past and expected future performance.
Moreover, these factors were not quantified or given any
particular weighting in determining grants of equity awards.
Rather, the Compensation Committee relied on its own business
experience and judgment in determining the grants. After
reviewing the factors set forth above, the Compensation
Committee determined the amounts of grants to be awarded based
on the Compensation Committees view of the relative
responsibility of each executive officers position with
the Company. The Companys Chief Executive Officer and
Executive Vice Presidents received grants of equity awards
valuing three times their 2011 annual base salary, as the
Committee viewed these grants as appropriate based on each of
the executive officers position and contribution to the
Company. The Chief Financial Officer received grants of equity
awards valuing two times his 2011 annual base salary and an
additional grant of equity awards to compensate the Chief
Financial Officer for his significant service to the Company
during the months before and after the Merger.
In 2010, the named executive officers received additional
compensation in the form of vacation, medical, 401(k), and other
benefits generally available to all of our full time employees.
Compensation
Policies and Practices for 2011
The core objectives of our compensation programs for 2011 are to
secure and retain the services of high quality executives and to
provide compensation to our executives that are commensurate and
aligned with our performance and advances both short and
long-term interests of ours and our stockholders. We seek to
achieve
18
these objectives through three principal compensation programs:
(1) a base salary, (2) long-term equity incentives,
and (3) an annual cash incentive bonus. Base salaries are
designed primarily to attract and retain talented executives.
Grants of equity awards are designed to provide a strong
incentive for achieving long-term results by aligning interests
of our executives with those of our stockholders, while at the
same time encouraging our executives to remain with the company.
Annual cash incentives are designed to motivate and reward the
achievement of selected financial goals, generally tied to
profitability. The Compensation Committee believes that our
compensation programs for the named executive officers is
appropriately based upon our performance and the performance and
level of responsibility of the executive officer. In addition,
the risks arising from our compensation policies and practices
for our employees are not reasonably likely to have a material
adverse effect on the Company.
Named
Executive Officer Compensation Components for 2011
For 2011, base salary, long-term equity incentive compensation,
and an annual cash incentive bonus opportunity are the principal
components of compensation for the named executive officers. In
determining compensation for 2011, the Compensation Committee
reviewed the compensation programs of other companies in our
industry for informational purposes. However, the Compensation
Committee did not use this information as a reference point,
either wholly or in part, to base, justify or provide a
framework for its compensation decisions and the Compensation
Committee did not engage in benchmarking.
Base
Salary
A significant portion of total compensation for 2011 will be
comprised of base salary, which enables us to attract and retain
talented executive management through the payment of reasonable
current income. On November 2, 2010, the Compensation
Committee approved, based on the recommendation of
Mr. Berrard, the 2011 compensation for our named executive
officers other than Mr. Berrard, and determined and
approved 2011 compensation for Mr. Berrard.
Mr. Berrard reviewed the performance of each of the named
executive officers (other than himself) and the compensation
paid to those individuals during the past fiscal year, and made
recommendations to the Compensation Committee regarding the
compensation to be paid to those individuals during 2011. When
determining base salary for 2011, the Compensation Committee did
not use any specific formula, factors, or particular criteria
that must be met by each named executive officer and did not
assign any relative weight to any factors or criteria it
considered. Rather, the Compensation Committee relied on its own
business experience, judgment and discretion by considering all
factors it deemed relevant. In determining base salaries for
2011, the Compensation Committee considered, the experience,
skills, knowledge and responsibilities of the named executive
officers in their respective roles. The Compensation Committee
increased Mr. Berrards salary for 2011 after
considering his responsibilities as a chief executive officer of
a public company with a significant growth strategy,
Mr. Berrards prior contributions to the company for
which he had not received commensurate compensation and
Mr. Berrards expected future contributions to the
company and its growth strategy. For 2011, base salary will be
$500,000 for Mr. Berrard, $230,000 for Mr. Byrne,
$220,000 for Mr. Aucamp, and $200,000 for Mr. Cooper.
Long-Term
Equity Incentive Compensation
At this time, the Compensation Committee has not approved the
terms of long-term equity incentive compensation for 2011.
Annual
Cash Incentive Bonus
On February 10, 2011, the Compensation Committee approved
2011 annual cash incentive bonus targets as a percentage of
annual base salaries for each of the named executive officers as
follows: Mr. Berrard 60%;
Mr. Byrne 50%; Mr. Aucamp 50%;
and Mr. Cooper 40%. The payment of such bonuses is based on
the Company achieving its budgeted earnings before interest,
taxes, depreciation and amortization (EBITDA) for the fiscal
year ending December 31, 2011.
19
The named executive officers will also receive additional
compensation in the form of vacation, medical, 401(k), and other
benefits generally available to all of our full time employees.
Summary
Compensation Table
The following table sets forth certain summary information
concerning compensation earned by, and paid to, the named
executive officers for 2009 and 2010.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonqualified
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock
|
|
|
Option
|
|
|
Non-Equity
|
|
|
Deferred
|
|
|
All Other
|
|
|
|
|
Name and Principal
|
|
|
|
|
|
|
|
|
|
|
Awards
|
|
|
Awards
|
|
|
Incentive Plan
|
|
|
Compensation
|
|
|
Compensation
|
|
|
|
|
Position
|
|
Year
|
|
|
Salary
|
|
|
Bonus
|
|
|
(1)(2)
|
|
|
(1)(2)
|
|
|
Compensation
|
|
|
Earnings
|
|
|
(3)
|
|
|
Total
|
|
|
Steven R. Berrard
|
|
|
2010
|
|
|
$
|
192,308
|
|
|
|
|
|
|
$
|
1,049,999
|
|
|
$
|
160,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,403,253
|
|
President and Chief
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Executive Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hugh H. Cooper
|
|
|
2010
|
|
|
$
|
200,000
|
|
|
|
|
|
|
$
|
512,050
|
|
|
$
|
78,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
790,538
|
|
Chief Financial
|
|
|
2009
|
|
|
$
|
207,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
154
|
|
|
|
|
|
|
$
|
207,846
|
|
Officer and Treasurer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thomas Aucamp
|
|
|
2010
|
|
|
$
|
203,077
|
|
|
|
|
|
|
$
|
461,999
|
|
|
$
|
70,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
735,891
|
|
Executive Vice
|
|
|
2009
|
|
|
$
|
207,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
207,692
|
|
President and Secretary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thomas Byrne
|
|
|
2010
|
|
|
$
|
204,615
|
|
|
|
|
|
|
$
|
482,999
|
|
|
$
|
74,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
761,649
|
|
Executive Vice
|
|
|
2009
|
|
|
$
|
207,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
615
|
|
|
|
|
|
|
$
|
208,307
|
|
President
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Represents restricted stock units and stock options granted
under the Swisher Hygiene Inc. 2010 Stock Incentive Plan (the
Plan). These grants are subject to stockholder
ratification and approval of the Plan. |
|
|
|
(2) |
|
This column reflects the aggregate grant date fair value
computed in accordance with FASB ASC Topic 718. In determining
the grant date fair value for restricted stock units, the
Company used $4.18, the closing price of the Companys
common stock on the grant date. In determining the grant date
fair value for stock options, the Company used the Black-Scholes
option pricing model, and took into account the $4.18 closing
price of the Companys common stock on the grant date, the
$4.18 exercise price, the 6.25 year assumed period over
which the options will be outstanding, a 30.7% volatility rate,
and a 1.87% risk free rate. |
|
|
|
(3) |
|
No named executive officer received other compensation that
exceeded $10,000 during 2009 and 2010. |
Grants of
Plan-Based Awards Fiscal 2010
The following table sets forth certain information concerning
grants of awards to the named executive officers pursuant to the
Plan in the fiscal year ended December 31, 2010.
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Other
|
|
|
All Other
|
|
|
|
|
|
Grant
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock
|
|
|
Option
|
|
|
Exercise
|
|
|
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Awards:
|
|
|
Awards:
|
|
|
or Base
|
|
|
Fair
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
Number of
|
|
|
Price of
|
|
|
Value of
|
|
|
|
|
|
|
Estimated Possible Payouts Under
|
|
|
Estimated Future Payouts Under
|
|
|
Shares of
|
|
|
Securities
|
|
|
Option
|
|
|
Stock and
|
|
|
|
Grant
|
|
|
Non-Equity Incentive Plan Awards
|
|
|
Equity Incentive Plan Awards
|
|
|
Stock or
|
|
|
Underlying
|
|
|
Awards
|
|
|
Option
|
|
Name
|
|
Date
|
|
|
Threshold
|
|
|
Target
|
|
|
Maximum
|
|
|
Threshold
|
|
|
Target
|
|
|
Maximum
|
|
|
Units (#)(1)
|
|
|
Options (#)(2)
|
|
|
($/Sh)
|
|
|
Awards(3)
|
|
|
Steven R. Berrard
|
|
|
11/2/10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
251,196
|
|
|
|
107,656
|
|
|
$
|
4.18
|
|
|
$
|
1,210,945
|
|
Hugh H. Cooper
|
|
|
11/2/10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
122,500
|
|
|
|
52,500
|
|
|
$
|
4.18
|
|
|
$
|
590,538
|
|
Thomas Aucamp
|
|
|
11/2/10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
110,526
|
|
|
|
47,368
|
|
|
$
|
4.18
|
|
|
$
|
532,814
|
|
Thomas Byrne
|
|
|
11/2/10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
115,550
|
|
|
|
49,522
|
|
|
$
|
4.18
|
|
|
$
|
557,034
|
|
|
|
|
(1) |
|
Represents restricted stock units granted under the Plan, which
vest in four equal annual installments beginning on the first
anniversary of the grant date. Each restricted stock unit
represents the right to receive one share of common stock upon
vesting. These grants of restricted stock units are subject to
stockholder ratification and approval of the Plan. |
20
|
|
|
(2) |
|
Represents stock options granted under the Plan, which vest in
four equal annual installments beginning on the first
anniversary of the grant date. These grants of stock options are
subject to stockholder ratification and approval of the Plan. |
|
|
|
(3) |
|
Represents the aggregate grant date fair value computed in
accordance with FASB ASC Topic 718. In determining the grant
date fair value for restricted stock units, we used $4.18, the
closing price of our common stock on the grant date. In
determining the grant date fair value for stock options, we used
the Black-Scholes option pricing model, and took into account
the $4.18 closing price of our common stock on the grant date,
the $4.18 exercise price, the 6.25 year assumed period over
which the stock options will be outstanding, a 30.7% volatility
rate, and a 1.87% risk free rate. |
Outstanding
Equity Awards at Fiscal Year-End 2010
The following table sets forth certain information regarding
equity-based awards held by the named executive officers as of
December 31, 2010.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Option Awards(1)
|
|
|
Stock Awards(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incentive
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
Plan
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incentive
|
|
Awards:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plan
|
|
Market or
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Awards:
|
|
Payout
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market
|
|
Number of
|
|
Value of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Value of
|
|
Unearned
|
|
Unearned
|
|
|
Number of
|
|
Number of
|
|
|
|
|
|
|
Number of
|
|
Shares or
|
|
Shares,
|
|
Shares,
|
|
|
Securities
|
|
Securities
|
|
|
|
|
|
|
Shares or
|
|
Units of
|
|
Units or
|
|
Units or
|
|
|
Underlying
|
|
Underlying
|
|
|
|
|
|
|
Units of
|
|
Stock That
|
|
Other
|
|
Other
|
|
|
Unexercised
|
|
Unexercised
|
|
Option
|
|
Option
|
|
|
Stock That
|
|
Have Not
|
|
Rights That
|
|
Rights That
|
|
|
Options (#)
|
|
Options (#)
|
|
Exercise
|
|
Expiration
|
|
|
Have Not
|
|
Vested
|
|
Have Not
|
|
Have Not
|
Name
|
|
Exercisable
|
|
Unexercisable
|
|
Price ($)
|
|
Date
|
|
|
Vested (#)(2)
|
|
($)(3)
|
|
Vested (#)
|
|
Vested ($)
|
Steven R. Berrard
|
|
|
|
|
|
|
107,656
|
|
|
$
|
4.18
|
|
|
|
11/2/2020
|
|
|
|
|
251,196
|
|
|
$
|
1,195,693
|
|
|
|
|
|
|
|
|
|
Hugh H. Cooper
|
|
|
|
|
|
|
52,500
|
|
|
$
|
4.18
|
|
|
|
11/2/2020
|
|
|
|
|
122,500
|
|
|
$
|
583,100
|
|
|
|
|
|
|
|
|
|
Thomas Aucamp
|
|
|
|
|
|
|
47,368
|
|
|
$
|
4.18
|
|
|
|
11/2/2020
|
|
|
|
|
110,526
|
|
|
$
|
526,104
|
|
|
|
|
|
|
|
|
|
Thomas Byrne
|
|
|
|
|
|
|
49,522
|
|
|
$
|
4.18
|
|
|
|
11/2/2020
|
|
|
|
|
115,550
|
|
|
$
|
550,018
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Represents stock options granted under the Plan, which vest in
four equal annual installments beginning on November 2,
2011. These grants of stock options are subject to stockholder
ratification and approval of the Plan. |
|
|
|
(2) |
|
Represents restricted stock units granted under the Plan, which
vest in four equal annual installments beginning on
November 2, 2011. Each restricted stock unit represents the
right to receive one share of common stock upon vesting. These
grants of restricted stock units are subject to stockholder
ratification and approval of the Plan. |
|
|
|
(3) |
|
Determined by multiplying the closing price of the
Companys common stock on December 31, 2010 ($4.76) by
the number of shares of common stock underlying the restricted
stock units. |
Potential
Payments upon Termination or
Change-in-Control
The named executive officers do not have employment agreements
with us and are all employed on an at will basis. We
do not have arrangements with any of our named executive
officers providing for additional benefits or payments in
connection with a termination of employment, change in job
responsibility, or a
change-in-control.
Director
Compensation
No director received compensation for services rendered during
2009 or for 2010 before the Merger.
Upon completion of the Merger, our Board approved director
compensation for our non-employee directors as follows:
|
|
|
|
|
an annual fee of $60,000, paid quarterly on a calendar year
basis;
|
21
|
|
|
|
|
an annual committee chairman fee of $10,000, paid quarterly on a
calendar year basis to the Chairman of each of our Audit
Committee, Compensation Committee, and Nominating and Corporate
Governance Committee;
|
|
|
|
a per Board meeting fee of $1,500, paid quarterly in arrears on
a calendar year basis;
|
|
|
|
a per committee meeting fee of $1,500, paid quarterly in arrears
on a calendar year basis;
|
|
|
|
an annual grant of $35,000 in restricted stock units, paid on
the first day of the month following our annual meeting of
stockholders; and
|
|
|
|
a one time grant of $25,000 in restricted stock units, paid to
each non-employee director upon their election or appointment to
the Board.
|
Fees not designated to be paid in restricted stock units may be
accepted as cash or restricted stock units at the
directors discretion.
Director
Compensation Fiscal 2010
The following table sets forth certain information regarding the
compensation paid to our non-employee directors for their
service during the fiscal year ended December 31, 2010.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonqualified
|
|
|
|
|
|
|
Fees Earned
|
|
|
|
|
|
Non-Equity
|
|
Deferred
|
|
|
|
|
|
|
or Paid in
|
|
Stock
|
|
Option
|
|
Incentive Plan
|
|
Compensation
|
|
All Other
|
|
|
Name
|
|
Cash
|
|
Awards(1)
|
|
Awards
|
|
Compensation
|
|
Earnings
|
|
Compensation
|
|
Total
|
|
H. Wayne Huizenga
|
|
$
|
13,000
|
|
|
$
|
56,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
69,915
|
|
David Braley
|
|
$
|
16,000
|
|
|
$
|
58,416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
74,416
|
|
John Ellis Bush
|
|
$
|
17,500
|
|
|
$
|
60,083
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
77,583
|
|
James E. OConnor(2)
|
|
$
|
16,000
|
|
|
$
|
60,083
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
76,083
|
|
David Prussky
|
|
$
|
16,000
|
|
|
$
|
58,416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
74,416
|
|
Ramon A. Rodriguez(2)
|
|
$
|
17,500
|
|
|
$
|
61,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
79,084
|
|
Michael Serruya
|
|
$
|
13,000
|
|
|
$
|
56,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
69,915
|
|
|
|
|
(1) |
|
Represents restricted stock units granted under the Plan. These
grants of restricted stock units are subject to stockholder
ratification and approval of the Plan. This columns reflects the
aggregate grant date fair value computed in accordance with FASB
ASC Topic 718. In determining the grant date fair value for
restricted stock units, the Company used $4.18, the closing
price of the Companys common stock on the grant date. The
table below sets forth the aggregate number of restricted stock
units and stock options of each non-employee director
outstanding as of December 31, 2010. The table below does
not include non-compensatory warrants to purchase
5,500,000 shares of common stock held by Mr. Serruya,
which were issued to him prior to the Merger. |
|
|
|
|
|
|
|
|
|
|
|
Restricted
|
|
|
Name
|
|
Stock Units
|
|
Stock Options
|
|
H. Wayne Huizenga
|
|
|
13,616
|
|
|
|
|
|
David Braley
|
|
|
13,975
|
|
|
|
|
|
John Ellis Bush
|
|
|
14,374
|
|
|
|
|
|
James E. OConnor(2)
|
|
|
14,374
|
|
|
|
|
|
David Prussky
|
|
|
13,975
|
|
|
|
20,000
|
|
Ramon A. Rodriguez(2)
|
|
|
14,733
|
|
|
|
|
|
Michael Serruya
|
|
|
13,616
|
|
|
|
|
|
|
|
|
(2) |
|
Messrs. OConnor and Rodriguez resigned as directors
on January 28, 2011. |
22
AUDIT-RELATED
MATTERS
The following statement made by our Audit Committee does not
constitute soliciting material and should not be deemed filed or
incorporated by reference into any filing under the Securities
Act of 1933, as amended, or the Securities Exchange Act of 1934,
as amended, except to the extent that we specifically
incorporate such statement by reference.
The audit committee of Swisher Hygiene Inc. (the
Company) is composed of three
independent directors, as determined in accordance
with Rule 5605(a)(2) of The NASDAQ Stock Markets
regulations and
Rule 10A-3
of the Securities Exchange Act of 1934, as amended. The audit
committee operates pursuant to a written charter adopted by our
Board of Directors, a copy of which is available on the Investor
Relations section of the Companys website at
www.swisherhygiene.com.
As described more fully in its charter, the purpose of the audit
committee is to:
|
|
|
|
|
oversee the Companys accounting and financial reporting
processes, the Companys internal systems of control and
audits of the Companys consolidated financial statements;
|
|
|
|
oversee the Companys relationship with its independent
auditors, including appointing or changing the Companys
auditors and ensuring their independence; and
|
|
|
|
provide oversight regarding significant financial matters,
including the Companys tax planning, treasury policies,
currency exposures, dividends and share issuance and repurchases.
|
Management is responsible for preparation, presentation and
integrity of our financial statements as well as our financial
reporting process, accounting policies, internal accounting
controls and disclosure controls and procedures. The independent
registered public accounting firm is responsible for performing
an independent audit of our financial statements in accordance
with generally accepted auditing standards and to issue a report
thereon. The audit committees responsibility is to monitor
and oversee these processes.
The audit committee has:
|
|
|
|
|
reviewed and discussed the Companys audited financial
statements with management;
|
|
|
|
discussed with BDO USA, LLP (BDO), the
Companys independent registered public accounting firm,
the matters required to be discussed by the Statement on
Auditing Standards No. 61, Communications with Audit
Committees, as amended (AICPA, Professional Standards, Vol.
1. AU section 380), as adopted by the Public Company
Accounting Oversight Board (PCAOB) in
Rule 3200T; and
|
|
|
|
received from BDO the written disclosures and the letter
regarding their communications with the audit committee
concerning independence as required by the applicable
requirements of the PCAOB and discussed with BDO the
auditors independence from our company and management.
|
In addition, the audit committee has met separately with
management and with BDO.
Based on the review and discussions referred to above, the audit
committee recommended to the Board of Directors that the audited
financial statements for the fiscal year ended December 31,
2010 be included in the Companys Annual Report on
Form 10-K
for the year ended December 31, 2010 for filing with the
Securities and Exchange Commission.
AUDIT COMMITTEE
William D. Pruitt, Chairman
David Braley
David Prussky
23
AUDITOR
FEES AND SERVICES
The following table sets forth the fees billed by BDO USA, LLP
(BDO), our independent registered public accounting
firm during the year ended December 31, 2010, and Scharf
Pera & Co., PLLC (Scharf), our independent
registered public accounting firm during the year ended
December 31, 2009.
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
Audit Fees
|
|
$
|
86,400
|
|
|
$
|
308,704
|
|
Audit-Related Fees(1)
|
|
|
271,896
|
|
|
|
|
|
Tax Fees(2)
|
|
|
|
|
|
|
21,253
|
|
All Other Fees(3)
|
|
|
|
|
|
|
11,582
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
358,296
|
|
|
$
|
341,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Represents fees billed by BDO in connection with its review of
the registration statements on
Form S-1
and Form 10. |
|
(2) |
|
Represents fees billed by Scharf for tax compliance services. |
|
(3) |
|
Represents fees billed by Scharf in connection with its audit of
our 401(k) Plan in 2009. |
CHANGES
IN INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers
LLP
On November 1, 2010, we terminated the engagement of
PricewaterhouseCoopers LLP (PWC), which served as
the independent registered public accounting firm for
CoolBrands. Our Board recommended and approved the decision to
terminate PWC. PWCs reports on the financial statements of
CoolBrands for the fiscal year ended August 31, 2010 and
August 31, 2009 did not contain an adverse opinion nor a
disclaimer of opinion and were not qualified or modified as to
uncertainty, audit scope or accounting principles.
In connection with PWCs audits of CoolBrands
financial statements for the fiscal years ended August 31,
2010 and August 31, 2009, and through the interim period
ended November 1, 2010, we have had no disagreements with
PWC on any matter of accounting principles or practices,
financial statement disclosure or auditing scope or procedure,
which disagreement, if not resolved to the satisfaction of PWC,
would have caused PWC to make a reference to the subject matter
of the disagreements in connection with it reports on the
consolidated financial statements for the fiscal years ended
August 31, 2010 and August 31, 2009.
Scharf
Pera & Co., PLLC
On November 2, 2010, we terminated the engagement of
Scharf, which served as the independent registered public
accounting firm for Swisher International. Our Audit Committee
recommended and approved the decision to terminate Scharf.
Scharfs reports on the financial statements of Swisher
International for the fiscal years ended December 31, 2009
and December 31, 2008 did not contain an adverse opinion
nor a disclaimer of opinion and were not qualified or modified
as to uncertainty, audit scope, or accounting principles.
In connection with Scharfs audits of Swisher International
financial statements for the fiscal years ended
December 31, 2009 and December 31, 2008, and through
the interim period ended November 2, 2010, we have had no
disagreements with Scharf on any matter of accounting principles
or practices, financial statement disclosure, or auditing scope
or procedure, which disagreement, if not resolved to the
satisfaction of Scharf, would have caused Scharf to make a
reference to the subject matter of the disagreements in
connection with its reports on the consolidated financial
statements for the fiscal years ended December 31, 2009 and
December 31, 2008.
24
BDO USA,
LLP
Effective November 2, 2010, our Audit Committee engaged BDO
as our independent registered public accounting firm for the
fiscal year ended December 31, 2010. Before engaging BDO,
neither Swisher Hygiene nor anyone acting on Swisher
Hygienes behalf, consulted BDO regarding the application
of accounting principles to a specific completed or contemplated
transaction, or the type of audit opinion that might be rendered
on Swisher Hygienes financial statements, and no written
or oral advice was provided that was an important factor
considered by Swisher Hygiene in reaching a decision as to any
accounting, auditing, or financial reporting issues. On
March 11, 2011, our Audit Committee selected BDO as our
independent registered public accountant for the fiscal year
ending December 31, 2011.
A representative of BDO is expected to be present at the Annual
Meeting, will have the opportunity to make a statement if he or
she desires and will be available to respond to appropriate
questions from stockholders.
POLICY
FOR APPROVAL OF AUDIT AND PERMITTED NON-AUDIT SERVICES
The Audit Committee has adopted a policy and related procedures
requiring its pre-approval of all audit and non-audit services
to be rendered by its independent registered public accounting
firm. These policies and procedures are intended to ensure that
the provision of such services do not impair the independent
registered public accounting firms independence. These
services may include audit services, audit-related services, tax
services and other services. The policy provides for the annual
establishment of fee limits for various types of audit services,
audit-related services, tax services and other services, within
which the services are deemed to be pre-approved by the Audit
Committee. The independent registered public accounting firm is
required to provide to the Audit Committee
back-up
information with respect to the performance of such services.
All services provided by Scharf and BDO during the fiscal years
ended December 31, 2010 and 2009 were approved by the Audit
Committee. The Audit Committee has delegated to its Chair the
authority to pre-approve services, up to a specified fee limit,
to be rendered by the independent registered public accounting
firm and requires that the Chair report to the Audit Committee
any pre-approval decisions made by the Chair at the next
scheduled meeting of the Audit Committee.
PROPOSAL 2:
AUTHORIZED COMMON STOCK PROPOSAL
Background
Our Board proposes amending the Certificate of Incorporation to
increase the number of authorized shares of common stock as more
fully described below. We currently have authorized
400,000,000 shares of common stock, par value $.001 per
share, with approximately 127,875,427 shares of common
stock outstanding at March 21, 2011. The Board believes
that the increase in the number of authorized shares of common
stock would provide us greater flexibility with respect to our
capital structure for purposes such as future additional equity
financings, acquisitions, and compensatory programs. As
described in Proposal 3, the Board also proposes to
authorize 10,000,000 shares of preferred stock. If both
this Proposal 2 and Proposal 3 are approved, the total
number of authorized shares of all classes of our capital stock
will be 610,000,000 shares, consisting of
600,000,000 shares of common stock, par value $.001 per
share, and 10,000,000 shares of preferred stock, par value
$.001 per share. For a discussion of the proposed preferred
stock, see Proposal 3 Preferred Stock Proposal,
below. Proposal 2 and 3 are not contingent on
one another.
Purposes
of the Amendment
Having an increased number of authorized but unissued shares of
common stock would allow the Company to take prompt action with
respect to corporate opportunities that develop, without the
delay and expense of convening a special meeting of stockholders
for the purpose of approving an increase in the Companys
capitalization. The issuance of additional shares of common
stock may, depending upon the circumstances under which such
shares are issued, reduce stockholders equity per share
and may reduce the
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percentage ownership of common stock by existing stockholders.
It is not the present intention of the Board to seek stockholder
approval prior to any issuance of shares of common stock that
would become authorized by the amendment unless otherwise
required by law or regulation. Frequently, opportunities arise
that require prompt action, and it is the belief of the Board
that the delay necessitated for stockholder approval of a
specific issuance could be to the detriment of the Company and
its stockholders.
Effects
of the Increase in Authorized Capital Stock
Our stockholders will not realize any dilution in their voting
rights as a result of the increase in the number of authorized
shares of common stock but will experience dilution in their
voting rights to the extent additional shares are issued.
Issuance of significant numbers of additional shares of our
common stock in the future (i) will dilute
stockholders percentage ownership and (ii) if such
shares are issued at prices below what current
stockholders paid for their shares, may dilute the value
of current stockholders shares.
When issued, the additional shares of common stock authorized by
the amendment will have the same rights and privileges as the
shares of common stock currently authorized and outstanding.
Holders of common stock have no preemptive rights and,
accordingly, stockholders would not have any preferential rights
to purchase any of the additional shares of common stock when
such shares are issued.
Shares of authorized common stock could be issued in one or more
transactions that could make it more difficult, and therefore
less likely, that a purchase or change in control of the Company
could occur. Issuance of additional common stock could have a
deterrent effect on persons seeking to acquire control. The
Board also could, although it has no present intention of so
doing, authorize the issuance of shares of common stock to a
holder who might thereby obtain sufficient voting power to
assure that any proposal to effect certain business combinations
or amendment to the Companys Certificate of Incorporation
or Bylaws would not receive the required stockholder approval.
Accordingly, the power to issue additional shares of common
stock could enable the Board to make it more difficult to
replace incumbent directors or to accomplish business
combinations opposed by the incumbent Board.
Effective
Date of the Amendment
If this amendment to our certificate of incorporation is
approved by our stockholders, we will file the amended and
restated certificate of incorporation with the Delaware
Secretary of State in order for the amendment to become
effective. If we obtain stockholder approval of this proposal,
we intend to file an amended and restated certificate of
incorporation as soon as practicable following such approval.
Our Board reserves the right, notwithstanding stockholder
approval of the proposal and without further action by our
stockholders, not to proceed with the amendment at any time
before the effective date of the amendment and restatement of
our certificate of incorporation.
Article FOURTH of the Companys Certificate of
Incorporation, currently provides as follows:
FOURTH. The total number of shares of common
stock of the corporation, par value $.001 per share (the
Common Shares), which the corporation shall have
authority to issue is 400,000,000. Upon the effectiveness of the
Domestication (the Effective Time), any stock
certificate that, immediately prior to the Effective Time,
represented common shares of CoolBrands Canada will, from and
after the Effective Time, automatically and without the
necessity of presenting the same for exchange, represent an
identical number of Common Shares of the corporation.
Our Board has approved the following amendment and restatement
to Article FOURTH, subject to approval of such amendment by
the holders of the Companys Common Stock in accordance
with Proposal 2 and Proposal 3. Proposals 2 and 3
are not contingent on one another. If both
Proposal 2 and Proposal 3 are approved, we will
subsequently file an amended and restated certificate of
incorporation providing that the entire Article Fourth, set
forth above, will be deleted in its entirety and replaced by the
following:
FOURTH. A. The total number of shares of all
classes of stock which the corporation shall be authorized to
issue is 610,000,000 shares, divided into
600,000,000 shares of common stock, par value
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$.001 per share (herein called Common Stock), and
10,000,000 shares of preferred stock, par value $.001 per
share (herein called Preferred Stock).
B. The Board of Directors of the corporation (the
Board of Directors) is hereby expressly authorized,
by resolution or resolutions thereof, to provide, out of the
unissued shares of Preferred Stock, for one or more series of
Preferred Stock and, with respect to each such series, to fix
the number of shares constituting such series and the
designation of such series, the voting powers (if any) of the
shares of such series, and the preferences and relative,
participating, optional or other special rights, if any, and any
qualifications, limitations or restrictions thereof, of the
shares of such series. The powers, preferences and relative,
participating, optional and other special rights of each series
of Preferred Stock, and the qualifications, limitations or
restrictions thereof, if any, may differ from those of any and
all other series at any time outstanding.
C. Except as may otherwise be provided in this Certificate
of Incorporation (including any certificate filed with the
Secretary of State of the State of Delaware establishing the
terms of a series of Preferred Stock in accordance with
Section B of this Article FOURTH) or by applicable
law, each holder of Common Stock, as such, shall be entitled to
one vote for each share of Common Stock held of record by such
holder on all matters on which stockholders generally are
entitled to vote, and no holder of any series of Preferred
Stock, as such, shall be entitled to any voting powers in
respect thereof.
D. Subject to applicable law and the rights, if any, of the
holders of any outstanding series of Preferred Stock, dividends
may be declared and paid on the Common Stock at such times and
in such amounts as the Board of Directors in its discretion
shall determine.
E. Upon the dissolution, liquidation or winding up of the
corporation, subject to the rights, if any, of the holders of
any outstanding series of Preferred Stock, the holders of the
Common Stock shall be entitled to receive the assets of the
corporation available for distribution to its stockholders
ratably in proportion to the number of shares held by them.
F. Notwithstanding the foregoing, except as otherwise
required by law, holders of Common Stock, as such, shall not be
entitled to vote on any amendment to this Certificate of
Incorporation (including any certificate of designations
relating to any series of Preferred Stock) that relates solely
to the terms of one or more outstanding series of Preferred
Stock if the holders of such affected series are entitled,
either separately or together with the holders of one or more
other such series, to vote thereon pursuant to this Certificate
of Incorporation (including any certificate of designations
relating to any series of Preferred Stock) or pursuant to the
General Corporation Law of the State of Delaware.
G. Subject to the rights of the holders of any series of
Preferred Stock pursuant to the terms of this Certificate of
Incorporation or any resolution or resolutions providing for the
issuance of such series of stock adopted by the Board of
Directors, the number of authorized shares of Preferred Stock
may be increased or decreased (but not below the number of
shares thereof then outstanding) by the affirmative vote of the
holders of a majority of the stock of the corporation entitled
to vote generally in the election of directors irrespective of
the provisions of Section 242(b)(2) of the General
Corporation Law of the State of Delaware.
The full text of our Amended and Restated Certificate of
Incorporation, as proposed to be filed if Proposal 2,
Proposal 3, and Proposal 4 are all approved, is set
forth as Annex A to this proxy statement.
Dissenters
Rights
Neither Delaware law nor our certificate of incorporation or
bylaws provides our stockholders with the rights of appraisal or
similar rights of dissenters with respect to this amendment.
27
Vote
Required and Recommendation
The Board recommends that you vote FOR the
Authorized Common Stock Proposal. The vote required to approve
the Authorized Common Stock Proposal is a majority of the
outstanding shares of our common stock.
PROPOSAL 3:
PREFERRED STOCK PROPOSAL
Background
Our Board believes it is in the best interest of our
stockholders and the Company to amend our certificate of
incorporation to authorize 10,000,000 shares of preferred
stock with a par value of $0.001 per share and provide that our
Board is authorized to prescribe the series and the number of
the shares of each series of preferred stock and the voting
powers, designations, preferences, limitations, restrictions and
relative rights of the shares of each series of preferred stock.
Preferred stock for which the Board is authorized to so
determine the series and the number of the shares of each series
of preferred stock and the voting powers, designations,
preferences, limitations, restrictions and relative rights of
the shares of each series of preferred stock is commonly
referred to as blank check preferred.
The Board believes that this authorization of preferred stock
would provide the Company greater flexibility with respect to
the Companys capital structure for such purposes as
additional equity financing and acquisitions. Upon approval of
this Preferred Stock Proposal and the Authorized Common Stock
Proposal and the Stockholders Consent Proposal, the Board
would amend and restate the Companys Certificate of
Incorporation as set forth in Annex A to this proxy
statement. Those provisions to be amended in the event this
proposal is approved are set forth below.
Our certificate of incorporation currently authorizes the
issuance of up to 400,000,000 shares of common stock with a
par value of $0.001 per share. No shares of preferred stock are
currently authorized. As described in Proposal 2, the Board
also proposed to increase the authorized number of shares of
authorized common stock. If both this Proposal 3 and
Proposal 2 are approved, the total number of authorized
shares of all classes of our capital stock will be
610,000,000 shares, consisting of 600,000,000 shares
of common stock, par value $.001 per share, and
10,000,000 shares of preferred stock, par value $.001 per
share. For a discussion of the proposed increase in the number
of authorized shares of common stock, see
Proposal 2 Authorized Common Stock Proposal,
above. Proposal 2 and 3 are not contingent on
one another.
If our certificate of incorporation is amended to authorize
preferred stock, our Board would have discretion to prescribe
the series and the number of the shares of each series of
preferred stock and the voting powers, designations,
preferences, limitations, restrictions and relative rights of
the shares of each series of preferred stock. If this proposal
is approved by our stockholders, our Board does not intend to
solicit further stockholder approval before the issuance of any
shares of preferred stock, except as may be required by
applicable law or rule, however our Board has no current plan to
issue any shares of preferred stock authorized as a result of
the stockholder approval hereby obtained.
Upon the effectiveness of the amendment authorizing the creation
of a class of blank check preferred stock, when required by law
and in accordance with the Delaware General Corporation Law, our
Board will have the express authority to execute and file a
certificate of designation setting forth the series and the
number of the shares of each series of preferred stock and the
voting powers, designations, preferences, limitations,
restrictions and relative rights of the shares of each series of
our preferred stock.
Purposes
of the Amendment
The Board recommends the authorization of 10,000,000 shares
of preferred stock to increase the Companys financial
flexibility. The Board believes that the complexity of modern
business financing and acquisition transactions requires greater
flexibility in the Companys capital structure than now
exists. The preferred stock would be available for issuance from
time to time as determined by the Board for any proper corporate
purpose. Such purposes might include, without limitation,
issuance in public or private sales for cash
28
as a means of obtaining additional capital for use in the
Companys business and operations, or issuance as part or
all of the consideration required to be paid by the Company for
acquisitions of other businesses or assets.
If the proposed amendment is approved, the Board would be
empowered, without the necessity of further action or
authorization by the Companys stockholders, unless
required in a specific case by applicable laws or regulations,
to authorize the issuance of up to 10,000,000 shares of
preferred stock from time to time in one or more series, and to
fix by resolution or resolutions, designations, preferences,
limitations and relative rights of each such series. Each series
of preferred stock could, as determined by the Board at the time
of issuance, rank, with respect to dividends and redemption and
liquidation rights, senior to the Companys common stock.
Effects
of the Authorization of a Class of Preferred Stock
Although the Board has no current plan to issue any shares of
preferred stock, any future issuance of preferred stock could
adversely affect the rights of holders of our common stock. If
we issue preferred stock, such preferred stock will include
certain designations, rights, qualifications, preferences,
limitations and terms, any of which may dilute the voting power
or economic interest of holders of our common stock. For
example, in the absence of a proportionate increase in our
earnings and book value, an increase in the aggregate number of
outstanding shares caused by the issuance of our preferred stock
could dilute the earnings per share and book value per share of
all outstanding shares of our common stock. In addition, in a
liquidation, the holders of our preferred stock may be entitled
to receive a certain amount per share of our preferred stock
before the holders of our common stock receive any distribution.
In addition, the holders of our preferred stock may be entitled
to vote and such votes may dilute the voting rights of the
holders of our common stock when we seek to take corporate
action. Our preferred stock also may be convertible into shares
of our common stock. Furthermore, our preferred stock could be
issued with certain preferences over the holders of our common
stock with respect to dividends or the power to approve the
declaration of a dividend. The aforementioned are only examples
of how shares of our preferred stock, if issued, could result in:
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reduction of the amount of funds otherwise available for payment
of dividends on our common stock;
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restrictions on dividends that may be paid on our common stock
(although there are no current plans to pay dividends on our
common stock);
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dilution of the voting power of our common stock; and
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restrictions on the rights of holders of our common stock to
share in our assets on liquidation until satisfaction of any
liquidation preference granted to the holders of our preferred
stock.
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In addition to financing purposes, we could also issue shares of
preferred stock that may, depending on the terms of such issued
preferred stock, make more difficult or discourage an attempt to
obtain control of our company by means of a merger, tender
offer, proxy contest or other means. When, in the judgment of
our Board, this action would be in the best interest of our
company and stockholders, such shares could be used to create
voting or other impediments or to discourage persons seeking to
gain control of our company. Such shares also could be privately
placed with purchasers favorable to our Board in opposing such
action. In addition, our Board could authorize holders of a
series of our preferred stock to vote either separately as a
class or with the holders of our common stock, on any merger,
sale or exchange of assets by our company or any other
extraordinary corporate transaction. The existence of the
additional authorized preferred stock could have the effect of
discouraging unsolicited takeover attempts. The issuance of
preferred stock also could be used to dilute the stock ownership
of a person or entity seeking to obtain control of our company
should our Board consider the action of such entity or person
not to be in the best interest of our stockholders. The issuance
of preferred stock also could be used to entrench current
management or deter an attempt to replace our Board by diluting
the number or rights of shares held by individuals seeking to
control our company by obtaining a certain number of seats on
our Board.
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Effective
Date of the Amendment
If this amendment to our certificate of incorporation is
approved by our stockholders, we will file the amended and
restated certificate of incorporation with the Delaware
Secretary of State in order for the amendment to become
effective. If we obtain stockholder approval of this proposal,
we intend to file an amended and restated certificate of
incorporation as soon as practicable following such approval.
Our Board reserves the right, notwithstanding stockholder
approval of this amendment to our certificate of incorporation
and without further action by our stockholders, not to proceed
with the amendment at any time before the effective date of the
amendment and restatement of our certificate of incorporation.
Article FOURTH of the Companys Certificate of
Incorporation, currently provides as follows:
FOURTH. The total number of shares of common
stock of the corporation, par value $.001 per share (the
Common Shares), which the corporation shall have
authority to issue is 400,000,000. Upon the effectiveness of the
Domestication (the Effective Time), any stock
certificate that, immediately prior to the Effective Time,
represented common shares of CoolBrands Canada will, from and
after the Effective Time, automatically and without the
necessity of presenting the same for exchange, represent an
identical number of Common Shares of the corporation.
Our Board has approved the following amendment and restatement
to Article FOURTH, subject to approval of such amendment by
the holders of the Companys Common Stock in accordance
with Proposal 2 and Proposal 3. Proposals 2 and 3
are not contingent on one another. If both
Proposal 2 and Proposal 3 are approved, and we
subsequently file an amended and restated certificate of
incorporation providing that the entire Article Fourth, set
forth above, will be deleted in its entirety and replaced by the
following:
FOURTH A. The total number of shares of all classes of stock
which the corporation shall be authorized to issue is
610,000,000 shares, divided into 600,000,000 shares of
common stock, par value $.001 per share (herein called
Common Stock), and 10,000,000 shares of
preferred stock, par value $.001 per share (herein called
Preferred Stock).
B. The Board of Directors of the corporation (the
Board of Directors) is hereby expressly authorized,
by resolution or resolutions thereof, to provide, out of the
unissued shares of Preferred Stock, for one or more series of
Preferred Stock and, with respect to each such series, to fix
the number of shares constituting such series and the
designation of such series, the voting powers (if any) of the
shares of such series, and the preferences and relative,
participating, optional or other special rights, if any, and any
qualifications, limitations or restrictions thereof, of the
shares of such series. The powers, preferences and relative,
participating, optional and other special rights of each series
of Preferred Stock, and the qualifications, limitations or
restrictions thereof, if any, may differ from those of any and
all other series at any time outstanding.
C. Except as may otherwise be provided in this Certificate
of Incorporation (including any certificate filed with the
Secretary of State of the State of Delaware establishing the
terms of a series of Preferred Stock in accordance with
Section B of this Article FOURTH) or by applicable
law, each holder of Common Stock, as such, shall be entitled to
one vote for each share of Common Stock held of record by such
holder on all matters on which stockholders generally are
entitled to vote, and no holder of any series of Preferred
Stock, as such, shall be entitled to any voting powers in
respect thereof.
D. Subject to applicable law and the rights, if any, of the
holders of any outstanding series of Preferred Stock, dividends
may be declared and paid on the Common Stock at such times and
in such amounts as the Board of Directors in its discretion
shall determine.
E. Upon the dissolution, liquidation or winding up of the
corporation, subject to the rights, if any, of the holders of
any outstanding series of Preferred Stock, the holders of the
Common Stock shall be entitled to receive the assets of the
corporation available for distribution to its stockholders
ratably in proportion to the number of shares held by them.
30
F. Notwithstanding the foregoing, except as otherwise
required by law, holders of Common Stock, as such, shall not be
entitled to vote on any amendment to this Certificate of
Incorporation (including any certificate of designations
relating to any series of Preferred Stock) that relates solely
to the terms of one or more outstanding series of Preferred
Stock if the holders of such affected series are entitled,
either separately or together with the holders of one or more
other such series, to vote thereon pursuant to this Certificate
of Incorporation (including any certificate of designations
relating to any series of Preferred Stock) or pursuant to the
General Corporation Law of the State of Delaware.
G. Subject to the rights of the holders of any series of
Preferred Stock pursuant to the terms of this Certificate of
Incorporation or any resolution or resolutions providing for the
issuance of such series of stock adopted by the Board of
Directors, the number of authorized shares of Preferred Stock
may be increased or decreased (but not below the number of
shares thereof then outstanding) by the affirmative vote of the
holders of a majority of the stock of the corporation entitled
to vote generally in the election of directors irrespective of
the provisions of Section 242(b)(2) of the General
Corporation Law of the State of Delaware.
In addition, if the Preferred Stock Proposal is approved, the
amended and restated certificate of incorporation to be filed
will include conforming changes to Articles SEVENTH AND
EIGHTH, each as set forth below with the conforming language
underlined.
SEVENTH. Subject to the rights of the holders
of any series of Preferred Stock and to the requirements of
applicable law, special meetings of stockholders of the
corporation for any purpose or purposes may be called at any
time only by the chairman of the Board of Directors or the
president of the corporation or at the written request of a
majority of the members of the Board of Directors and may not be
called by any other person, and any power of stockholders to
call a special meeting is specifically denied.
EIGHTH. Except as authorized in advance by a
resolution adopted by the Board of Directors or except as
otherwise provided for or fixed pursuant to the provisions of
Article FOURTH of this Certificate of Incorporation
relating to the rights of holders of any series of Preferred
Stock, any action required or permitted to be taken by the
stockholders of the corporation must be effected at a duly
called annual or special meeting of the stockholders of the
corporation, and the taking of any action by written consent of
the stockholders in lieu of a meeting of the stockholders is
specifically denied.
The full text of our Amended and Restated Certificate of
Incorporation, as proposed to be filed if Proposal 2,
Proposal 3, and Proposal 4 are all approved, is set
forth as Annex A to this proxy statement.
Dissenters
Rights
Neither Delaware law nor our certificate of incorporation or
bylaws provides our stockholders with the rights of appraisal or
similar rights of dissenters with respect to this amendment.
Vote
Required and Recommendation
The Board recommends that you vote FOR the Preferred
Stock Proposal. The vote required to approve the Preferred Stock
Proposal is a majority of the outstanding shares of our common
stock.
PROPOSAL 4:
STOCKHOLDER CONSENT PROPOSAL
Background
The General Corporation Law of the State of Delaware provides
that, unless a companys certificate of incorporation
provides otherwise, stockholders may take action without a
meeting if the holders of stock having the minimum number of
votes necessary to authorize such action sign a written consent.
The Companys current Certificate of Incorporation provides
that any action permitted to be taken by stockholders may only
be taken at an annual meeting or special meeting of
stockholders. The Board is now proposing an amendment to the
Companys Certificate of Incorporation that would permit
action that is required to be taken
31
or which may be taken at any annual or special meeting of
stockholders of the Company to be taken by the written consent
of stockholders, without a meeting, if such action is taken by a
written consent signed by the holders of stock having the
minimum number of votes necessary to authorize such action at a
meeting, if the Board has previously approved the actions or, in
the case of holders of preferred stock, if and to the extent
that the certificate of incorporation (including any certificate
of designation) expressly provides that holders of preferred
stock (or any series thereof) may act by written consent.
Purpose
of the Amendment
The Board recommends allowing any action required or permitted
to be taken by stockholders to be taken without a meeting of
stockholders if a consent in writing setting forth the action so
taken shall be signed by the holders of outstanding stock having
not less than the minimum number of votes that would be
necessary to authorize or take such action, if the Board has
previously approved the actions or, in the case of holders of
preferred stock, if and to the extent that the certificate of
incorporation (including any certificate of designation)
expressly provides that holders of preferred stock (or any
series thereof) may act by written consent. If written consent
is allowed, action of stockholders can be undertaken more
efficiently. The Board believes it is in the best interest of
the Company and its stockholders to allow action of stockholders
by written consent in certain cases described in this proposal
and therefore proposes to amend the Companys Certificate
of Incorporation.
Effect of
the Authorization to Permit Stockholders to Act by Written
Consent
There are advantages of permitting stockholder action by written
consent, provided, the Board has previously approved the actions
or, in the case of holders of preferred stock, if and to the
extent that the certificate of incorporation (including any
certificate of designation) expressly provides that holders of
preferred stock (or any series thereof) may act by written
consent, and these advantages may include:
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the view that provisions limiting action by written consent of
the stockholders are inconsistent with principles of good
corporate governance because they can, either in appearance or
practice, limit stockholders ability to participate
effectively in corporate governance;
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the view that stockholder consent limited to actions previously
approved by the Board allows the Board to exercise its business
judgment as fiduciaries of the stockholders before the action
may be consented to by a majority of stockholders;
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the expense of holding a meeting of stockholders can be
considerable, and it is inefficient to hold a stockholders
meeting if the holders of a significant number of voting stock
have already determined how a matter will be decided; and
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the ability to obtain stockholder approval by written consent
also facilitates transactions by the Company without the delays
in calling a meeting and distributing meeting materials.
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Conversely, there may be advantages of not permitting
stockholder action by written consent, these advantages include:
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requiring stockholder action only at a stockholder meeting
increases the likelihood that the Company and all of its
stockholders will be given an opportunity to consider carefully
and respond prudently to important stockholder
proposals; and
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requiring stockholder action only at a stockholder meeting
avoids untimely action in a context that might not permit
stockholders to have the full benefit of the knowledge, advice
and participation of the Companys management and Board.
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In making its recommendation, the Board balanced the various
interests of those who view the right to act by written consent
as good corporate governance and the attendant advantages of
acting by written consent, and the protections afforded
stockholders by precluding action by written consent. The Board
noted that permitting action by written consent of the
stockholders is consistent with the Companys overall
efforts to reduce expenses. The Board concluded that the best
interests of the Company and its stockholders would be
32
served by amending the Companys Certificate of
Incorporation to permit action by written consent (and without a
meeting of stockholders) in circumstances where the Board has
previously approved the actions or in the case of holders of
preferred stock, where the certificate of incorporation
(including any certificate of designation) expressly provides
that holders of preferred stock (or any series thereof) may act
by written consent.
Effective
Date of the Amendment
If this amendment to our certificate of incorporation is
approved by our stockholders, we will file the amended and
restated certificate of incorporation with the Delaware
Secretary of State in order for the amendment to become
effective. If we obtain stockholder approval of this proposal,
we intend to file an amended and restated certificate of
incorporation as soon as practicable following such approval.
Our Board reserves the right, notwithstanding stockholder
approval of this amendment to our certificate of incorporation
and without further action by our stockholders, not to proceed
with the amendment at any time before the effective date of the
amendment and restatement of our certificate of incorporation.
If Proposal 4 is approved by the stockholders, the
Certificate of Incorporation of the Company will be amended as
follows:
The Companys Certificate of Incorporation,
Article NINTH, currently states:
NINTH. Any action required or permitted to be
taken by the stockholders of the corporation must be effected at
a duly called annual or special meeting of the stockholders of
the corporation, and the taking of any action by written consent
of the stockholders in lieu of a meeting of the stockholders is
specifically denied.
Article NINTH of the Certificate of Incorporation, shall be
deleted in its entirety and the new Article EIGHTH shall
provide as follows:
EIGHTH. Except as authorized in advance by a
resolution adopted by the Board or except as otherwise provided
for or fixed pursuant to the provisions of Article FOURTH
of this Certificate of Incorporation relating to the rights of
holders of any series of Preferred Stock, any action required or
permitted to be taken by the stockholders of the corporation
must be effected at a duly called annual or special meeting of
the stockholders of the corporation, and the taking of any
action by written consent of the stockholders in lieu of a
meeting of the stockholders is specifically denied.
The full text of our Amended and Restated Certificate of
Incorporation, as proposed to be filed if Proposal 2,
Proposal 3, and Proposal 4 are all approved, is set
forth as Annex A to this proxy statement.
Dissenters
Rights
Neither Delaware law nor our certificate of incorporation or
bylaws provides our stockholders with the rights of appraisal or
similar rights of dissenters with respect to this amendment.
Vote
Required and Recommendation
The Board recommends that you vote FOR the approval
of the Stockholder Consent Proposal. The vote required to
approve the Stockholder Consent Proposal is a majority of the
outstanding shares of our common stock.
PROPOSAL 5:
STOCK INCENTIVE PLAN PROPOSAL
Background
The Amended and Restated Swisher Hygiene Inc. 2010 Stock
Incentive Plan (the Stock Incentive Plan) has been
approved by the Board and will become effective subject to
approval of our stockholders.
33
The purposes of the Stock Incentive Plan are to attract, retain
and reward employees, officers, directors (employee or
non-employee directors) or consultants of the Company and its
subsidiaries and affiliates, and other persons who may provide
services to the Company (Eligible Individuals) and
to link compensation to measures of performance; thereby
providing (1) additional incentives to such persons to
create stockholder value, and (2) such persons with an
opportunity to acquire a proprietary interest in the Company.
The Stock Incentive Plan will allow us to grant a variety of
stock-based and cash-based awards to Eligible Individuals.
Our Board seeks stockholder approval of the Stock Incentive Plan
and ratification of awards previously granted under the Plan to
satisfy certain legal and regulatory requirements. In addition,
our Board regards stockholder approval of the Stock Incentive
Plan as desirable and consistent with good corporate governance
practices.
Our Board also seeks to the greatest extent practicable to
ensure the Companys ability to claim tax deductions for
compensation paid. Section 162(m) of the Internal Revenue
Code (the Code) limits the deductions a publicly
held company can claim for compensation in excess of
$1 million paid in a given year to the Chief Executive
Officer and the three other most highly compensated executive
officers (other than the Chief Executive Officer and the Chief
Financial Officer) serving on the last day of the fiscal year
(covered employees). Performance-based
compensation that meets certain requirements is not counted
against the $1 million deductibility cap, and therefore
remains fully deductible. Because compensation may be paid to
covered employees of the Company under the Stock Incentive Plan,
the Company is seeking stockholder approval of the Stock
Incentive Plan in order to meet a key requirement for certain
awards to qualify as performance-based under
Section 162(m).
In addition, stockholder approval will permit designated stock
options to qualify as incentive stock options under the Code.
Such qualification can give holders of the options more
favorable tax treatment, as explained below.
Stockholder approval of the Stock Incentive Plan will not affect
the Companys ability to make stock- or cash-based awards
outside of the Stock Incentive Plan to the extent consistent
with applicable laws and regulations.
Potential
Dilution
The aggregate number of shares of common stock of the Company
that may be issued to employees, directors and consultants under
the Stock Incentive Plan is 11,400,000, representing
approximately 8.9% of issued and outstanding shares of the
Company as of March 21, 2011. Awards made under the Stock
Incentive Plan that are forfeited, cancelled or have expired
will not be counted for purposes of the share limitation.
Grant
Made Under the Stock Incentive Plan
Under the Plan, the Board has approved awards of options to
purchase 1,521,825 shares of our common stock (representing
1.2% of the issued and outstanding shares as of March 21,
2011), of which zero are for non-employee directors, 257,046 are
for executive officers, and 1,264,779 are for non-executive
employees. The options vest in four equal annual installments
beginning on the first anniversary of the grant date (the grant
dates range from November 2, 2010 to March 21,
2011) and are exercisable at prices between $4.18 to $6.32
per share. The options expire ten years from the date of grant.
The Board has also approved the award of 2,938,602 restricted
stock units (representing 2.3% of the issued and outstanding
shares as of March 21, 2011) at prices between $4.18
and $6.25 per share, of which 106,663 are for non-employee
directors, 599,772 are for executive officers, and 2,232,167 are
for non-executive employees. The restricted stock units vest in
four equal annual installments beginning on the first
anniversary of the grant date (the grant dates range from
November 2, 2010 to March 21, 2011). Because the Plan
and the awards made thereunder are subject to stockholder
approval and ratification, if such approval and ratification are
not obtained, then the recipients will not receive the awards as
granted by the Compensation Committee at this time.
34
Description
of the Stock Incentive Plan
The following is a brief description of the Stock Incentive
Plans material features. This description is qualified in
its entirety by reference to the full text of the Stock
Incentive Plan, a copy of which is attached to this proxy
statement as Annex B. We cannot determine the
benefits to be received by Eligible Individuals under the Stock
Incentive Plan.
Administration. The Stock Incentive Plan will
be administered by the Compensation Committee. The Compensation
Committee, appointed by the Board, has the full authority to
administer and interpret the Stock Incentive Plan, to authorize
the granting of awards, to determine the eligibility to receive
an award, to determine the number of shares of common stock to
be covered by each award (subject to the individual participant
limitations provided in the Stock Incentive Plan), to determine
the terms, provisions and conditions of each award (which may
not be inconsistent with the terms of the Stock Incentive Plan),
to prescribe the form of instruments evidencing awards and to
take any other actions and make all other determinations that it
deems necessary or appropriate in connection with the Stock
Incentive Plan or the administration or interpretation thereof.
In connection with this authority, the Compensation Committee
may, among other things, establish performance goals that must
be met in order for awards to be granted or to vest, or for the
restrictions on any such awards to lapse. The Compensation
Committee administering the Stock Incentive Plan will consist of
two or more non-employee directors, each of whom is intended to
be, to the extent required by
Rule 16b-3
under the Exchange Act, a non-employee director and will, at
such times as the Company is subject to Section 162(m) of
the Internal Revenue Code, qualify as an outside director for
purposes of Section 162(m) of the Internal Revenue Code; if
no Compensation Committee exists, the function of the
Compensation Committee shall be performed by the Board,
provided, however, that a Compensation Committee shall be
created prior to the grant of awards to a covered employee and
that grants of awards to a covered employee shall be made only
by such Compensation Committee. References below to the
Compensation Committee include a reference to the Board for
those periods in which the Board is acting as the Compensation
Committee.
Eligibility. Officers, employees, including
persons who have agreed to become employees, directors of, and
persons providing substantial bona fide personal services to the
Company and certain related entities are eligible to be selected
as award recipients. Incentive stock options may only be granted
to employees of the Company that meet the required definition
for purposes of incentive stock options under the Code.
Type of Awards. The Stock Incentive Plan gives
the Compensation Committee the flexibility to grant a variety of
instruments including stock options, restricted stock,
restricted stock units, stock appreciation rights, performance
shares and performance units. Awards may be granted alone or in
combination with any other award granted under the Stock
Incentive Plan or any other plan. The Compensation Committee
will determine the size of each award to be granted (including,
where applicable, the number of shares to which an award will
relate), and all other terms and conditions of each award. Below
is a description of the types of awards that may be issued under
the Stock Incentive Plan.
Stock Options and Stock Appreciation Rights. A
stock option is a right to purchase a specified number of shares
of the Companys common stock at an exercise price
established at the date of grant. Stock options granted may be
either non-qualified stock options or incentive stock options
(which are intended to qualify as incentive stock
options within Section 422 of the Code). A stock
appreciation right (SAR) entitles the recipient to
receive, upon surrender of the SAR, an amount of cash or number
of shares of the Company common stock having a fair market value
equal to the positive difference, if any, between the fair
market value of one share of common stock on the date of
exercise and the fair market value of one share of common stock
on the grant date. The Compensation Committee will specify at
the time an option or SAR is granted when and in what
proportions an option or SAR becomes vested and exercisable.
Stock options may not be transformed into SARs.
Subject to the limitations set forth in the Stock Incentive Plan
relating to incentive stock options, the exercise price of a
stock option shall be fixed by the Compensation Committee and
stated in the respective award agreement, provided that the
exercise price of the shares of common stock subject to such
stock option
35
may not be less than fair market value of such common stock on
the grant date, or if greater, the par value of the common stock.
No stock options may be exercised prior to the satisfaction of
the conditions and vesting schedule provided for in the award
agreement relating thereto or in the Stock Incentive Plan. The
term of all stock options is 10 years unless otherwise
provided in the award agreement.
Restricted Stock. An award of restricted stock
is an issuance of shares of the Company common stock that is
subject to certain restrictions established by the Compensation
Committee and to forfeiture to the Company if the holder does
not satisfy certain requirements (including, for example,
continued employment with the Company for a specified period of
time). Recipients of restricted stock may receive the stock
prior to the restrictions being satisfied, in which case such
stock shall be legended accordingly, or the Company may elect to
hold such shares for the benefit of the restricted stock
recipient. Generally, the restricted stock recipient will be
entitled to vote the restricted stock and to exercise other
stockholder rights. Thus, upon grant, the shares may be included
in the Companys total number of shares outstanding and
accrue and pay dividends, which may be subject to the same
restrictions and forfeiture conditions as the restricted stock
with respect to which such dividends were issued.
Restricted Stock Units. An award of restricted
stock units is a right to receive, in the future, a specified
number of shares of the Company common stock that is subject to
satisfaction of certain terms and conditions established by the
Compensation Committee (including, for example, continued
employment with the Company for a specified period of time).
Performance-Based Awards. The Compensation
Committee may grant performance awards, which may be cash-or
stock-based, including performance units and performance shares.
Generally, performance awards require satisfaction of
pre-established performance goals, consisting of one or more
business criteria and a targeted performance level with respect
to such criteria as a condition of awards being granted,
becoming exercisable or settleable, or as a condition to
accelerating the timing of such events. The Compensation
Committee will set the performance goals used to determine the
amount payable pursuant to a performance award. To avoid
limitations on tax deductibility in Section 162(m) of the
Code for any compensation in excess of $1 million paid to
covered employees of the Company, the business criteria used by
the Compensation Committee in establishing performance goals
applicable to performance awards to such covered employees must
be selected from among the following:
i. the attainment of certain target levels of, or a
specified increase in, the Companys enterprise value or
value creation targets;
ii. the attainment of certain target levels of, or a
percentage increase in, the Companys after-tax or pre-tax
profits including, without limitation, that attributable to
Companys continuing
and/or other
operations;
iii. the attainment of certain target levels of, or a
specified increase relating to, the Companys operational
cash flow or working capital, or a component thereof;
iv. the attainment of certain target levels of, or a
specified decrease relating to, the Companys operational
costs, or a component thereof;
v. the attainment of a certain level of reduction of, or
other specified objectives with regard to limiting the level of
increase in all or a portion of bank debt or other of
Companys long-term or short-term public or private debt or
other similar financial obligations of the Company, which may be
calculated net of cash balances
and/or other
offsets and adjustments as may be established by the
Compensation Committee;
vi. the attainment of a specified percentage increase in
earnings per share or earnings per share from the Companys
continuing operations;
vii. the attainment of certain target levels of, or a
specified percentage increase in, the Companys net sales,
revenues, net income or earnings before income tax or other
exclusions;
36
viii. the attainment of certain target levels of, or a
specified increase in, the Companys return on capital
employed or return on invested capital;
ix. the attainment of certain target levels of, or a
percentage increase in, the Companys after-tax or pre-tax
return on shareholder equity;
x. the attainment of certain target levels in the fair
market value of the Companys common stock;
xi. the growth in the value of an investment in the common
stock assuming the reinvestment of dividends;
xii. successful mergers, acquisitions of other companies or
assets and any cost savings or synergies associated therewith
and/or
xiii. the attainment of certain target levels of, or a
specified increase in, EBITDA (earnings before income tax,
depreciation and amortization).
In addition, performance goals may be based upon the attainment
by a subsidiary, division or other operational unit of the
Company of specified levels of performance under one or more of
the measures described above. Further, the performance goals may
be based upon the attainment by the Company (or a subsidiary,
division, facility or other operational unit of the Company) of
specified levels of performance under one or more of the
foregoing measures relative to the performance of other
corporations. To the extent permitted under Code
Section 162(m) of the Code (including, without limitation,
compliance with any requirements for shareholder approval), the
Compensation Committee may, in its sole and absolute discretion:
(i) designate additional business criteria upon which the
performance goals may be based; (ii) modify, amend or
adjust the business criteria described above; or
(iii) incorporate in the performance goals provisions
regarding changes in accounting methods, corporate transactions
(including, without limitation, dispositions or acquisitions)
and similar events or circumstances.
Limitations on Awards. The aggregate number of
shares that may be issued under the Stock Incentive Plan will
not exceed 11,400,000, representing approximately 8.9% of issued
and outstanding shares of the Company as of March 21, 2011.
A maximum of 6,000,000 shares, representing approximately
4.7% of issued and outstanding shares of the Company as of
March 21, 2011, may be subject to grants of incentive stock
options. A maximum of 5,700,000 shares, representing
approximately 4.5% of issued and outstanding shares of the
Company as of March 21, 2011, may be issued in connection
with awards, other than stock options and stock appreciation
rights that are settled in common stock. A maximum of
600,000 shares, representing approximately 0.5% of issued
and outstanding shares of the Company as of March 21, 2011,
may be subject to grants of stock options or stock appreciation
rights to any one Eligible Individual during any one fiscal
year. A maximum of 350,000 shares representing
approximately 0.3% of issued and outstanding shares of the
Company as of March 21, 2011, may be subject to grants of
performance shares, restricted stock, and awards of common stock
to any one Eligible Individual during any one fiscal year. The
maximum value at grant date of grants of performance units which
may be granted to any one Eligible Individual during any one
fiscal year shall be $1,000,000. Shares issued under the Stock
Incentive Plan that are reacquired by the Company in connection
with a cancellation, forfeiture, termination or other failure to
satisfy performance conditions will generally not be treated as
having been issued for purposes of the share limitation. Shares
delivered under the Stock Incentive Plan may be newly issued
shares, treasury shares, or shares acquired in the open market.
Awards may not be assigned other than by will or the laws of
descent and distribution.
Unless permitted under the rules and regulations of the Toronto
Stock Exchange, the number of shares of common stock which may
be issued to Insiders (as defined below) at any time and the
number of awards that may be granted to Insiders within the
12 month period under the Stock Incentive Plan and under
each of the Corporations other securities based
compensation arrangements, may not exceed in aggregate, 10% of
the issued common stock. The term Insiders generally
includes the Companys directors, executive officers and
shareholders of the Company that own more than 10% of the
Companys stock (by voting power).
The following describes the treatment of the awards under the
Stock Incentive Plan in the event of participants
termination of employment or other service with the Company.
Unvested stock options shall
37
expire upon the earlier of the date of participants
termination of employment or other service with the Company or
expiration of the stock options term. Once vested, stock
options shall expire on the earlier of: (i) 90 days
following a participants termination of employment or
other service with the Company for reasons other than cause,
disability or death; (ii) one year following a
participants termination of employment or other service
with the Company by reason of disability or death; and
(iii) the expiration of the stock options term. In
the event the termination is for cause, any option held by the
participant at the time of such termination shall be deemed to
have terminated and expired upon the date of such termination.
Restricted stock and restricted stock units shall be immediately
forfeited and, in the case of restricted stock, returned to the
Company, if a participants employment or other service
with the Company terminates for any reason. Performance shares
and performance units shall be cancelled and forfeited
immediately upon termination unless such termination is as a
result of death or disability, in which case the participant or
their estate, devisee or heir at law shall be entitled to a
proportionate payment at the end of the applicable performance
period.
Adjustments. In the event outstanding shares
of the Company common stock are increased or decreased or
changed into or exchanged for a different number or kind of
shares or other securities of the Company by reason of any
recapitalization, reclassification, reorganization, stock split,
reverse split, combination of shares, exchange of shares, stock
dividend or other distribution payable in capital stock of the
Company or other increase or decrease in such shares effected
without receipt of consideration by the Company, the
Compensation Committee will adjust the number and kind of shares
subject to the aggregate and individual share limitations to the
extent equitable and appropriate. The Compensation Committee
will also make appropriate and equitable adjustments to
outstanding awards upon occurrence of these events to preserve
the awards without enhancing their value. These adjustments may
include changes to the number of shares subject to an award, the
exercise price or share price referenced in the award terms, and
other terms of the award.
Amendment, Termination. Our Board may amend,
suspend, discontinue, or terminate the Stock Incentive Plan or
the Compensation Committees authority to grant awards
under the Stock Incentive Plan without stockholder approval,
provided that stockholder approval will be required for any
amendment that will require stockholder approval as a matter of
law or regulation including the rules of any stock exchange or
automated quotation system on which the common stock may then be
listed or granted.
Stockholder approval shall be required for any amendment:
(i) that changes the class of individuals eligible to
receive awards under the plan; (ii) that increases the
maximum number of shares of common stock in the aggregate that
may be subject to awards that are granted under the plan;
(iii) the approval of which is necessary to comply with
federal or state law; (iv) any amendment to increase or
remove the insider participation limit set forth in the Stock
Incentive Plan; or (v) that proposes to eliminate a
requirement provided under the Stock Incentive Plan that the
Company stockholders must approve an action to be undertaken
under the Stock Incentive Plan.
Code Section 409A. It is intended that
awards granted under the Stock Incentive Plan either be exempt
from or comply with the requirements of Code Section 409A.
The Compensation Committee may amend any outstanding award
without the participants consent if such amendment is
required to either comply with Section 409A of the Code or
prevent the participant from being subject to any tax or penalty
under Section 409A.
Tax
Consequences
The federal income tax consequences arising with respect to
awards granted under the Stock Incentive Plan will depend on the
type of award. From the recipients standpoint, as a
general rule, ordinary income will be recognized at the time of
payment of cash or delivery of actual shares. Future
appreciation on shares held beyond the ordinary income
recognition event will be taxable at capital gains rates when
the shares are sold. The Company, as a general rule, will be
entitled to a tax deduction that corresponds in time and amount
to the ordinary income recognized by the recipient, and the
Company will not be entitled to any tax deduction in
38
respect of capital gain income recognized by the recipient.
Exceptions to these general rules may arise under the following
circumstances:
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if shares, when delivered, are subject to a substantial risk of
forfeiture by reason of failure to satisfy any employment or
performance-related condition, ordinary income taxation and the
Company tax deduction will be delayed until the risk of
forfeiture lapses (unless the recipient makes a special election
to ignore the risk of forfeiture);
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if a person is granted an option that qualifies as an
incentive stock option, no ordinary income will be
recognized, and the Company will not be entitled to any tax
deduction if shares acquired upon exercise of such option are
held more than the longer of one year from the date of exercise
and two years from the date of grant;
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the Company will not be entitled to a tax deduction for
compensation attributable to awards granted to one of its
covered employees if and to the extent such compensation does
not qualify as performance-based compensation under
Section 162(m) of the Code and such compensation, along
with any other non-performance-based compensation paid in the
same calendar year, exceeds $1 million; and
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an award may be taxable at 20 percentage points above
ordinary income tax rates at the time it becomes vested, even if
such vesting occurs prior to the delivery of the cash or stock
in settlement of the award, if the award constitutes
deferred compensation under Code Section 409A,
and the requirements of Code Section 409A are not satisfied.
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The foregoing provides only a general description of the
application of federal income tax laws to certain awards under
the Stock Incentive Plan. This discussion is intended for the
information of stockholders considering how to vote at the
special meeting and not as tax guidance to participants in the
Stock Incentive Plan, as the tax consequences may vary with the
types of awards made, the identity of the recipients, and the
method of payment or settlement. This summary does not address
the effects of other federal taxes (including possible
golden parachute excise taxes) or taxes imposed
under state, local, or foreign tax laws.
39
New Stock
Incentive Plan Benefits
The following table sets forth information regarding awards that
have been made pursuant to the Stock Incentive Plan from
November 2, 2010 thru March 21, 2011 to the
individuals and groups listed. All of these awards are subject
to stockholder approval of the Stock Incentive Plan and
ratification of the awards. If stockholder approval is not
obtained then the recipients will not receive the awards granted
at this time.
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Grant Date Fair
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Value of RSUs and
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Number of
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Number of
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Name
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Position
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Stock Options
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RSUs
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Stock Options
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H. Wayne Huizenga
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Chairman
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$
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56,915
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13,616
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Steven R. Berrard
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Chief Executive Officer, President and Director
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$
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1,210,945
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251,196
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107,656
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David Braley
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Director
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$
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58,416
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13,975
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John Ellis Bush
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Director
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$
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60,083
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14,374
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Harris W. Hudson
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Director
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$
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25,000
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4,000
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James OConnor
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Former Director(1)
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$
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60,083
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14,374
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William Pruitt
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Director
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$
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25,000
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4,000
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David Prussky
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Director
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$
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58,416
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13,975
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Ramon Rodriguez
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Former Director(1)
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$
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61,584
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14,733
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Michael Serruya
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Director
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$
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56,915
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13,616
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Thomas Aucamp
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Executive Vice President and Secretary
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$
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532,814
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110,526
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47,368
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Thomas Byrne
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Executive Vice President
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$
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557,034
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115,550
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49,522
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Hugh H. Cooper
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Chief Financial Officer
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$
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590,538
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122,500
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52,500
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Executive Officer Group (4 persons)
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$
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2,893,331
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599,772
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257,046
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Non-Executive Director Group (7 persons)
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$
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462,411
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106,663
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Non-Executive Employee Group
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$
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12,404,412
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2,232,167
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1,264,779
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(1) |
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Messrs. OConnor and Rodriguez resigned from the Board
effective January 28, 2011. |
Vote
Required and Recommendation
The Board recommends that you vote FOR the Stock
Incentive Plan Proposal. The vote required to approve the Stock
Incentive Plan Proposal is a majority of the shares of our
common stock which are present in person or by proxy and
entitled to vote thereon.
PROPOSAL 6:
PERFORMANCE INCENTIVE PLAN PROPOSAL
Background
The Swisher Hygiene Inc. Senior Executive Officers Performance
Incentive Bonus Plan (the Performance Incentive
Plan) has been approved by the Board and will become
effective subject to approval of our stockholders.
The purpose of the Performance Incentive Plan is to attract,
retain and motivate key employees by providing cash performance
bonuses to designated key employees of the Company or its
subsidiaries. (Performance Incentive Eligible
Individuals).
Our Board seeks to the greatest extent practicable to ensure the
Companys ability to claim tax deductions for compensation
paid. Section 162(m) of the Code limits the deductions a
publicly held company can claim
40
for compensation in excess of $1 million paid in a given
year to the Chief Executive Officer and the three other most
highly compensated executive officers (other than the Chief
Executive Officer and the Chief Financial Officer) serving on
the last day of the fiscal year (covered employees).
Performance-based compensation that meets certain
requirements is not counted against the $1 million
deductibility cap, and therefore remains fully deductible.
Because compensation may be paid to covered employees of the
Company under the Performance Incentive Plan, the Company is
seeking stockholder approval of the Performance Incentive Plan
in order to meet a key requirement for certain awards to qualify
as performance-based under Section 162(m). In
addition, our Board regards stockholder approval of the
Performance Incentive Plan as desirable and consistent with good
corporate governance practices.
Stockholder approval of the Performance Incentive Plan will not
affect the Companys ability to make cash-based awards
outside of the Performance Incentive Plan to the extent
consistent with applicable laws and regulations.
Description
of the Performance Incentive Plan
The following is a brief description of the Performance
Incentive Plans material features. This description is
qualified in its entirety by reference to the full text of the
Performance Incentive Plan, a copy of which is attached to this
proxy statement as Annex C. We cannot determine the
benefits to be received by Performance Incentive Eligible
Individuals under the Performance Incentive Plan.
Administration. The Performance Incentive Plan
shall be administered by the Compensation Committee. The
Compensation Committee shall have the exclusive authority and
responsibility to: (i) interpret the Performance Incentive
Plan; (ii) approve the designation of eligible
participants; (iii) set the performance criteria for awards
under the Performance Incentive Plan within the Performance
Incentive Plan guidelines; (iv) determine the timing and
form of amounts to be paid out under the Performance Incentive
Plan and the conditions for payment thereof; (v) certify
attainment of performance goals and other material terms;
(vi) reduce performance bonuses as provided in the
Performance Incentive Plan; (vii) authorize the payment of
all benefits and expenses of the Performance Incentive Plan as
they become payable under the Performance Incentive Plan;
(viii) adopt, amend and rescind rules and regulations
relating to the Performance Incentive Plan; and (ix) make
all other determinations and take all other actions necessary or
desirable for the Performance Incentive Plans
administration, including, without limitation, correcting any
defect, supplying any omission or reconciling any inconsistency
in this Performance Incentive Plan in the manner and to the
extent it shall deem necessary to carry this Performance
Incentive Plan into effect, but only to the extent such action
would be permitted under Code Section 162(m). The
Compensation Committee shall be appointed by the Board to
administer this Performance Incentive Plan; it is intended that
all of the members of the Compensation Committee shall satisfy
the requirements to be outside directors, as defined under Code
Section 162(m).
Eligibility. Key employees of the Company and
its subsidiaries are eligible to be selected as award recipients
under the Performance Incentive Plan.
Awards and Performance Goals. Under the
Performance Incentive Plan the Compensation Committee may grant
Performance Incentive Eligible Individuals cash awards (the
Awards). The Compensation Committee will determine
the size of each Award to be granted and all other terms and
conditions of each Award. Unless otherwise provided by the
Compensation Committee, the payment of the Awards shall be
contingent on achievement of one or more of certain performance
goals (the Performance Goals). Such Performance
Goals may incorporate, if and only to the extent permitted under
Code Section 162(m), provisions for disregarding (or
adjusting for) changes in accounting methods, corporate
transactions (including, without limitation, dispositions and
acquisitions) and similar type events or circumstances. To the
extent any such provision would create impermissible discretion
such that the Awards may not meet Code Section 162(m)
performance-based exception, such provision shall be of no force
or effect. Performance Goals will be based
41
on one or more of the following criteria, as determined by the
Compensation Committee in its absolute and sole discretion:
i. the attainment of certain target levels of, or a
specified increase in, the Companys enterprise value or
value creation targets;
ii. the attainment of certain target levels of, or a
percentage increase in, the Companys after-tax or pre-tax
profits including, without limitation, that attributable to the
Companys continuing
and/or other
operations;
iii. the attainment of certain target levels of, or a
specified increase relating to, the Companys operational
cash flow or working capital, or a component thereof;
iv. the attainment of certain target levels of, or a
specified decrease relating to, the Companys operational
costs, or a component thereof;
v. the attainment of a certain level of reduction of, or
other specified objectives with regard to limiting the level of
increase in all or a portion of bank debt or other of the
Companys long-term or short-term public or private debt or
other similar financial obligations of the Company, which may be
calculated net of cash balances
and/or other
offsets and adjustments as may be established by the
Compensation Committee;
vi. the attainment of a specified percentage increase in
earnings per share or earnings per share from the Companys
continuing operations;
vii. the attainment of certain target levels of, or a
specified percentage increase in, the Companys net sales,
revenues, net income or earnings before income tax or other
exclusions;
viii. the attainment of certain target levels of, or a
specified increase in, the Companys return on capital
employed or return on invested capital;
ix. the attainment of certain target levels of, or a
percentage increase in, the Companys after-tax or pre-tax
return on shareholder equity;
x. the attainment of certain target levels in the fair
market value of the Companys common stock;
xi. the growth in the value of an investment in the
Companys common stock assuming the reinvestment of
dividends;
xii. successful mergers, acquisitions of other companies or
assets and any cost savings or synergies associated therewith;
and/or
xiii. the attainment of certain target levels of, or a
specified increase in, EBITDA (earnings before income tax,
depreciation and amortization).
In addition, Performance Goals may be based upon the attainment
by a subsidiary, division or other operational unit of the
Company of specified levels of performance under one or more of
the measures described above. Further, the Performance Goals may
be based upon the attainment by the Company (or subsidiary,
division or other operational unit of the Company) of specified
levels of performance under one or more of the foregoing
measures relative to the performance of other corporations. To
the extent permitted under Code Section 162(m) of the Code
(including, without limitation, compliance with any requirements
for stockholder approval), the Compensation Committee may
(i) designate additional business criteria upon which the
Performance Goals may be based; (ii) modify, amend or
adjust the business criteria described herein or
(iii) incorporate in the Performance Goals provisions
regarding changes in accounting methods, corporate transactions
(including, without limitation, dispositions or acquisitions)
and similar events or circumstances. Performance Goals may
include a threshold level of performance below which no Award
will be earned, levels of performance at which an Award will
become partially earned and a level at which an Award will be
fully earned.
42
On February 10, 2011, the Compensation Committee approved
2011 annual cash incentive bonus targets as a percentage of
annual base salaries for each of the named executive officers as
follows: Mr. Berrard 60%;
Mr. Byrne 50%; Mr. Aucamp 50%;
and Mr. Cooper 40%. The payment of such bonuses is based on
the Company achieving its budgeted earnings before interest,
taxes, depreciation and amortization (EBITDA) for the fiscal
year ending December 31, 2011 and, as a result, the amounts
that will be received by each of the named executive officers,
the executive officers as a group and all other employees under
the Performance Incentive Plan are not presently determinable.
Furthermore, had the Performance Incentive Plan been in place
for 2010, amounts that would have been paid under such plan are
not determinable as no metrics were set by the Board or the
Compensation Committee for 2010.
Maximum Award. The maximum amount of Award
payable to a Performance Incentive Eligible Individual during
any one fiscal year of the Company is $1,500,000.
Federal
Income Tax Consequences.
The following is a brief summary of certain U.S. federal
income tax consequences generally arising with respect to
Awards. This overview should not be relied upon as being a
complete description of the applicable U.S. federal income
tax consequences. In addition, this overview does not address
the state, local, foreign or other tax aspects of awards made
under the Performance Incentive Plan.
A participant receiving an Award will not recognize taxable
income upon the grant of such Award, and the Company will not be
entitled to a tax deduction at such time. Upon the payment of an
Award, the participant will recognize ordinary income in an
amount equal to the cash paid by the Company. This amount is
deductible by the Company as compensation expense, except to the
extent the deduction limits of Code Section 162(m) apply.
Vote
Required and Recommendation
The Board recommends that you vote FOR the
Performance Incentive Plan Proposal. The vote required to
approve the Performance Incentive Plan Proposal is a majority of
the shares of our common stock which are present in person or by
proxy and entitled to vote thereon.
PROPOSAL 7:
SAY ON PAY PROPOSAL
Background
of the Proposal
The Dodd-Frank Act requires all public companies, beginning with
their stockholder meetings on or after January 21, 2011, to
hold a separate non-binding advisory stockholder vote to approve
the compensation of executive officers as described in the
Compensation Discussion and Analysis, the executive compensation
tables and any related information in each such companys
proxy statement.
Executive
Compensation
As discussed in the Compensation Discussion and
Analysis section of this proxy statement, the Board
believes that our executive compensation programs are designed
to secure and retain the services of high quality executives and
to provide compensation to our executives that are commensurate
and aligned with our performance and advances both short and
long-term interests of ours and our stockholders. We seek to
achieve these objectives through three principal compensation
programs: (1) a base salary, (2) long-term equity
incentives, and (3) an annual cash incentive bonus. Base
salaries are designed primarily to attract and retain talented
executives. Grants of equity awards are designed to provide a
strong incentive for achieving long-term results by aligning
interests of our executives with those of our stockholders,
while at the same time encouraging our executives to remain with
the company. Annual cash incentives are designed to motivate and
reward the achievement of selected financial goals, generally
tied to profitability. The Compensation Committee believes that
our compensation programs for the named executive officers is
appropriately based upon our performance and the performance and
level of responsibility of the executive officer. We urge you to
read the
43
Executive Compensation section of this proxy
statement for details on the Companys executive
compensation programs.
The Say on Pay Proposal is set forth in the following resolution:
RESOLVED, that the stockholders of Swisher Hygiene Inc. approve,
on an advisory basis, the compensation of its named executive
officers, as disclosed in the Swisher Hygiene Inc. Proxy
Statement for the 2011 Annual Meeting of Stockholders, pursuant
to the compensation disclosure rules of the Securities and
Exchange Commission, including the Compensation Discussion and
Analysis, the compensation tables, and any related information
found in the proxy statement of Swisher Hygiene Inc.
Because your vote on this proposal is advisory, it will not be
binding on the Board, the Compensation Committee or the Company.
However, the Compensation Committee will take into account the
outcome of the vote when considering future executive
compensation arrangements.
Vote
Required and Recommendation
The Board recommends that you vote FOR the Say on
Pay Proposal. The vote required to approve the Say on Pay
Proposal is a majority of the shares of our common stock which
are present in person or by proxy and entitled to vote thereon.
PROPOSAL 8:
FREQUENCY OF SAY ON PAY PROPOSAL
Background
of the Proposal
The Dodd-Frank Act also requires all public companies, beginning
with their stockholder meetings on or after January 21,
2011, to hold a separate non-binding advisory stockholder vote
with respect to the frequency of the vote on the Say on Pay
Proposal following the first Say on Pay vote. Companies must
give stockholders the choice of whether to cast an advisory vote
on the Say on Pay Proposal every year, every two years, or every
three years. Stockholders may also abstain from making a choice,
pursuant to proposed rules recently issued by the SEC. After
initial frequency votes are held, the Dodd-Frank Act requires
all public companies to submit to their stockholders no less
often than every six years thereafter the Frequency of Say on
Pay votes.
Frequency
Vote on Say on Pay
As discussed above, the Board believes that our executive
compensation programs are designed to secure and retain the
services of high quality executives and to provide compensation
to our executives that are commensurate and aligned with our
performance and advances both short and long-term interests of
ours and our stockholders. The Board believes that giving our
stockholders the right to cast an advisory vote every three
years on their approval of the compensation arrangements of our
named executive officers provides the Board sufficient time to
thoughtfully evaluate and respond to shareholder input and
effectively implement changes, as needed, to our executive
compensation program.
Although the Board recommends that the Say on Pay Proposal be
voted on every three years, our stockholders will be able to
specify one of four choices for the frequency of the vote on the
Say on Pay Proposal as follows: (i) one year, (ii) two
years, (iii) three years, or (iv) abstain. This is an
advisory vote and will not be binding on the Board or the
Company. As such the Board may determine that it is in the best
interests of our stockholders and the Company to hold an
advisory vote on executive compensation more or less frequently
than may be indicated by this advisory vote of our shareholders.
Nevertheless, the Board will take into account the outcome this
advisory vote when considering how frequently to seek an
advisory vote on Say on Pay in future years.
Vote
Required and Recommendation
The Board recommends the selection of every 3 YEARS
as your preference for the frequency with which stockholders are
provided an advisory vote on Say on Pay. The advisory vote on
the frequency of the
44
advisory vote on Say on Pay in future years is not binding on
the Board but the Board will take into account the outcome of
the vote when considering how frequently to seek an advisory
vote on Say on Pay in future years.
OTHER
MATTERS
We are not aware of any other matters that will be properly
brought before the Annual Meeting. However, if any additional
matters are properly brought before the Annual Meeting, Thomas
Aucamp and Thomas Byrne will vote as recommended by our Board
or, if no recommendation is given, in accordance with their
judgment. Messrs. Aucamp and Byrne were designated to be
your proxies by our Board.
HOUSEHOLDING;
AVAILABILITY OF ANNUAL REPORT AND PROXY STATEMENT
The SEC permits companies and intermediaries, such as a
brokerage firm or a bank, to satisfy the delivery requirements
for Notices and proxy materials with respect to two or more
stockholders sharing the same address by delivering only one
Notice or set of proxy materials to that address. This process,
which is commonly referred to as householding, can
effectively reduce our printing and postage costs.
Certain of our stockholders whose shares are held in street name
and who have consented to householding will receive only one
Notice or set of proxy materials per household. If you would
like to receive a separate Notice or set of proxy materials in
the future, or if your household is currently receiving multiple
copies of the same items and you would like to receive only a
single copy at your address in the future, please contact
Householding Department by mail at 51 Mercedes Way, Edgewood,
New York 11717 or by telephone at
1-800-542-1061
and indicate your name, the name of each of your brokerage firms
or banks where your shares are held, and your account numbers.
Householding is not available to our Canadian stockholders.
If you would like to receive a copy of our 2010 Annual Report or
this proxy statement, please contact our Investor Relations by
mail at Investor Relations, Swisher Hygiene Inc., 4725 Piedmont
Row Drive, Suite 400, Charlotte, North Carolina 28210 or by
telephone at
(704) 364-7707,
and we will send a copy to you without charge. Please note,
however, that if you wish to receive a paper proxy card or other
proxy materials for the purpose of the Annual Meeting, you
should follow the instructions included in the Notice of
Internet Availability of Proxy Materials.
45
Annex A
AMENDED
AND RESTATED CERTIFICATE OF INCORPORATION
OF
SWISHER HYGIENE INC.
The present name of the corporation is Swisher Hygiene Inc. The
corporation was incorporated under the name Swisher
Hygiene Inc. by the filing of its original Certificate of
Incorporation with the Secretary of State of the State of
Delaware on November 1, 2010. This Amended and Restated
Certificate of Incorporation of the corporation, which restates
and integrates and also further amends the provisions of the
corporations Certificate of Incorporation, was duly
adopted in accordance with the provisions of Sections 242
and 245 of the General Corporation Law of the State of Delaware.
The Certificate of Incorporation of the corporation is hereby
amended, integrated and restated to read in its entirety as
follows:
FIRST. The name of the corporation is Swisher
Hygiene Inc.
SECOND. The address of the corporations
registered office in the State of Delaware is 160 Greentree
Drive, Suite 101, Dover, DE 19904, Kent County. The name of
its registered agent at such address is National Registered
Agents, Inc.
THIRD. The purpose of the corporation is to
engage in any lawful act or activity for which corporations may
be organized under the General Corporation Law of the State of
Delaware.
FOURTH. A. The total number of shares of all
classes of stock which the corporation shall be authorized to
issue is 610,000,000 shares, divided into
600,000,000 shares of common stock, par value
$.001 per share (herein called Common Stock),
and 10,000,000 shares of preferred stock, par value
$.001 per share (herein called Preferred Stock).
B. The Board of Directors of the corporation (the
Board of Directors) is hereby expressly authorized,
by resolution or resolutions thereof, to provide, out of the
unissued shares of Preferred Stock, for one or more series of
Preferred Stock and, with respect to each such series, to fix
the number of shares constituting such series and the
designation of such series, the voting powers (if any) of the
shares of such series, and the preferences and relative,
participating, optional or other special rights, if any, and any
qualifications, limitations or restrictions thereof, of the
shares of such series. The powers, preferences and relative,
participating, optional and other special rights of each series
of Preferred Stock, and the qualifications, limitations or
restrictions thereof, if any, may differ from those of any and
all other series at any time outstanding.
C. Except as may otherwise be provided in this Certificate
of Incorporation (including any certificate filed with the
Secretary of State of the State of Delaware establishing the
terms of a series of Preferred Stock in accordance with
Section B of this Article FOURTH) or by applicable
law, each holder of Common Stock, as such, shall be entitled to
one vote for each share of Common Stock held of record by such
holder on all matters on which stockholders generally are
entitled to vote, and no holder of any series of Preferred
Stock, as such, shall be entitled to any voting powers in
respect thereof.
D. Subject to applicable law and the rights, if any, of the
holders of any outstanding series of Preferred Stock, dividends
may be declared and paid on the Common Stock at such times and
in such amounts as the Board of Directors in its discretion
shall determine.
E. Upon the dissolution, liquidation or winding up of the
corporation, subject to the rights, if any, of the holders of
any outstanding series of Preferred Stock, the holders of the
Common Stock shall be entitled to receive the assets of the
corporation available for distribution to its stockholders
ratably in proportion to the number of shares held by them.
F. Notwithstanding the foregoing, except as otherwise
required by law, holders of Common Stock, as such, shall not be
entitled to vote on any amendment to this Certificate of
Incorporation (including any certificate of designations
relating to any series of Preferred Stock) that relates solely
to the terms of one or
A-1
more outstanding series of Preferred Stock if the holders of
such affected series are entitled, either separately or together
with the holders of one or more other such series, to vote
thereon pursuant to this Certificate of Incorporation (including
any certificate of designations relating to any series of
Preferred Stock) or pursuant to the General Corporation Law of
the State of Delaware.
G. Subject to the rights of the holders of any series of
Preferred Stock pursuant to the terms of this Certificate of
Incorporation or any resolution or resolutions providing for the
issuance of such series of stock adopted by the Board of
Directors, the number of authorized shares of Preferred Stock
may be increased or decreased (but not below the number of
shares thereof then outstanding) by the affirmative vote of the
holders of a majority of the stock of the corporation entitled
to vote generally in the election of directors irrespective of
the provisions of Section 242(b)(2) of the General
Corporation Law of the State of Delaware.
FIFTH. Unless and except to the extent that
the by-laws of the corporation shall so require, the election of
directors of the corporation need not be by written ballot.
SIXTH.
A. In furtherance and not in limitation of the powers
conferred by the laws of the State of Delaware, the Board of
Directors of the corporation is expressly authorized to make,
alter and repeal the by-laws of the corporation.
B. The number of directors constituting the whole Board of
Directors shall be fixed from time to time by resolution of the
Board of Directors, provided that the Board of Directors shall
not be composed of less than three, nor more than 15,
directors.
C. Vacancies and newly created directorships on the Board
of Directors may be filled only by a majority of the directors
then in office, even if less than a quorum, or by a sole
remaining director.
SEVENTH. Subject to the rights of the holders
of any series of Preferred Stock and to the requirements of
applicable law, special meetings of stockholders of the
corporation for any purpose or purposes may be called at any
time only by the chairman of the Board of Directors or the
president of the corporation or at the written request of a
majority of the members of the Board of Directors and may not be
called by any other person, and any power of stockholders to
call a special meeting is specifically denied.
EIGHTH. Except as authorized in advance by a
resolution adopted by the Board of Directors or except as
otherwise provided for or fixed pursuant to the provisions of
Article FOURTH of this Certificate of Incorporation
relating to the rights of holders of any series of Preferred
Stock, any action required or permitted to be taken by the
stockholders of the corporation must be effected at a duly
called annual or special meeting of the stockholders of the
corporation, and the taking of any action by written consent of
the stockholders in lieu of a meeting of the stockholders is
specifically denied.
NINTH. A director of the corporation shall not
be liable to the corporation or its stockholders for monetary
damages for breach of fiduciary duty as a director, except to
the extent such exemption from liability or limitation thereof
is not permitted under the General Corporation Law of the State
of Delaware as the same exists or may hereafter be amended. Any
amendment, modification or repeal of the foregoing sentence
shall not adversely affect any right or protection of a director
of the corporation hereunder in respect of any act or omission
occurring prior to the time of such amendment, modification or
repeal.
TENTH. The corporation reserves the right at
any time, and from time to time, to amend, alter, change or
repeal any provision contained in this Certificate of
Incorporation, and other provisions authorized by the laws of
the State of Delaware at the time in force may be added or
inserted, in the manner now or hereafter prescribed by law; and
all rights, preferences and privileges of any nature conferred
upon stockholders, directors or any other persons by and
pursuant to this Certificate of Incorporation in its present
form or as hereafter amended are granted subject to the rights
reserved in this article.
ELEVENTH. The corporation shall not be subject
to the provisions of Section 203 of the General Corporation
Law of the State of Delaware.
A-2
IN WITNESS WHEREOF, Swisher Hygiene Inc. has caused this Amended
and Restated Certificate of Incorporation to be executed by its
duly authorized officer on this day
of ,
20 .
SWISHER HYGIENE INC.
Name:
A-3
Annex B
AMENDED
AND RESTATED
SWISHER
HYGIENE INC.
2010
STOCK INCENTIVE PLAN
1. ESTABLISHMENT, EFFECTIVE DATE AND TERM
Swisher Hygiene Inc., a Delaware corporation, hereby establishes
the Amended and Restated Swisher Hygiene Inc. 2010 Stock
Incentive Plan. The Effective Date of the Plan shall be the date
that the Plan was approved by the Board in accordance with the
laws of the State of Delaware or such later date as provided in
the resolutions adopting the Plan; provided, however, that the
shareholders of Swisher shall have approved this Plan within
twelve months following such approval by the Board. Any Award
issued under the Plan prior to the shareholders approval
of the Plan shall be contingent on such approval.
2. PURPOSE
The purpose of the Plan is to enable Swisher to attract, retain,
reward and motivate Eligible Individuals by providing them with
an opportunity to acquire or increase a proprietary interest in
Swisher and to incentivize them to expend maximum effort for the
growth and success of the Company, so as to strengthen the
mutuality of the interests between the Eligible Individuals and
the shareholders of Swisher.
3. ELIGIBILITY
Awards may be granted under the Plan to any Eligible Individual,
as determined by the Committee from time to time, on the basis
of their importance to the business of the Company pursuant to
the terms of the Plan.
4. ADMINISTRATION
(a) Committee. The Plan shall be
administered by the Committee, which shall have the full power
and authority to take all actions, and to make all
determinations not inconsistent with the specific terms and
provisions of the Plan deemed by the Committee to be necessary
or appropriate to the administration of the Plan, any Award
granted or any Award Agreement entered into hereunder. The
Committee may correct any defect or supply any omission or
reconcile any inconsistency in the Plan or in any Award
Agreement in the manner and to the extent it shall deem
expedient to carry the Plan into effect as it may determine in
its sole discretion. The decisions by the Committee shall be
final, conclusive and binding with respect to the interpretation
and administration of the Plan, any Award or any Award Agreement
entered into under the Plan.
(b) Delegation to Officers or
Employees. The Committee may designate
officers or employees of the Company to assist the Committee in
the administration of the Plan. The Committee may delegate
authority to officers or employees of the Company to grant
Awards and execute Award Agreements or other documents on behalf
of the Committee in connection with the administration of the
Plan, subject to whatever limitations or restrictions the
Committee may impose and in accordance with applicable law.
(c) Designation of Advisors. The
Committee may designate professional advisors to assist the
Committee in the administration of the Plan. The Committee may
employ such legal counsel, consultants, and agents as it may
deem desirable for the administration of the Plan and may rely
upon any advice and any computation received from any such
counsel, consultant or agent. The Company shall pay all expenses
and costs incurred by the Committee for the engagement of any
such counsel, consultant or agent.
(d) Participants Outside the
U.S. In order to conform with the provisions
of local laws and regulations in foreign countries in which the
Company operates, the Committee shall have the sole discretion
to (i) modify the terms and conditions of the Awards
granted under the Plan to Eligible Individuals located outside
the United States; (ii) establish subplans with such
modifications as may be necessary or advisable under the
circumstances present by local laws and regulations; and
(iii) take any action which it deems advisable to
B-1
comply with or otherwise reflect any necessary governmental
regulatory procedures, or to obtain any exemptions or approvals
necessary with respect to the Plan or any subplan established
hereunder.
(e) Liability and
Indemnification. No Covered Individual shall
be liable for any action or determination made in good faith
with respect to the Plan, any Award granted hereunder or any
Award Agreement entered into hereunder. The Company shall, to
the maximum extent permitted by applicable law and the Articles
of Incorporation and Bylaws of Swisher, indemnify and hold
harmless each Covered Individual against any cost or expense
(including reasonable attorney fees reasonably acceptable to the
Company) or liability (including any amount paid in settlement
of a claim with the approval of the Company), and amounts
advanced to such Covered Individual necessary to pay the
foregoing at the earliest time and to the fullest extent
permitted, arising out of any act or omission to act in
connection with the Plan, any Award granted hereunder or any
Award Agreement entered into hereunder. Such indemnification
shall be in addition to any rights of indemnification such
individuals may have under applicable law or under the Articles
of Incorporation or Bylaws of Swisher. Notwithstanding anything
else herein, this indemnification will not apply to the actions
or determinations made by a Covered Individual with regard to
Awards granted to such Covered Individual under the Plan or
arising out of such Covered Individuals own fraud or bad
faith.
5. SHARES OF COMMON STOCK SUBJECT TO PLAN
(a) Shares Available for
Awards. The Common Stock that may be issued
pursuant to Awards granted under the Plan shall be treasury
shares or authorized but unissued shares of the Common Stock.
The total number of shares of Common Stock that may be issued
pursuant to Awards granted under the Plan shall be Eleven
Million and Four Hundred Thousand (11,400,000) shares.
(b) Certain Limitations on Specific Types of
Awards. Subject to the overall limit on
Common Stock which may be issued under the Plan as specified in
Section 5(a) above, the granting of Awards under this Plan
shall be subject to the following limitations:
(i) With respect to the shares of Common Stock reserved
pursuant to this Section, a maximum of Six Million (6,000,000)
of such shares may be subject to grants of Incentive Stock
Options;
(ii) With respect to the shares of Common Stock reserved
pursuant to this Section, a maximum of Five Million and Seven
Hundred Thousand (5,700,000) of such shares may be issued in
connection with Awards, other than Stock Options and Stock
Appreciation Rights, that are settled in Common Stock;
(iii) With respect to the shares of Common Stock reserved
pursuant to this Section, a maximum of Six Hundred Thousand
(600,000) of such shares may be subject to grants of Options or
Stock Appreciation Rights to any one Eligible Individual during
any one fiscal year;
(iv) With respect to the shares of Common Stock reserved
pursuant to this Section, a maximum of Three Hundred and Fifty
Thousand (350,000) of such shares may be subject to grants of
Performance Shares, Restricted Stock, and Awards of Common Stock
to any one Eligible Individual during any one fiscal
year; and
(v) The maximum value at Grant Date of grants of
Performance Units which may be granted to any one Eligible
Individual during any one fiscal year shall be One Million
dollars ($1,000,000).
(c) Awards to Insiders. Unless
permitted under TSX Policies or by Regulatory Approval and, if
required thereby, the requisite shareholder approval is obtained
the number of shares of Common Stock which may be issued to
Insiders within any one year and the number of Awards that may
be granted to Insiders at any time under the Plan and under each
of the Swishers other securities based compensation
arrangements, may not exceed in aggregate, 10% of the issued
Common Stock.
B-2
(d) Reduction of Shares Available for
Awards. Upon the granting of an Award, the
number of shares of Common Stock available under this Section
hereof for the granting of further Awards shall be reduced as
follows:
(i) In connection with the granting of an Award that is
settled in Common Stock, the number of shares of Common Stock
shall be reduced by the number of shares of Common Stock subject
to the Award; and
(ii) Awards settled in cash shall not count against the
total number of shares of Common Stock available to be issued
pursuant to the Plan.
(e) Cancelled, Forfeited or Surrendered
Awards. Notwithstanding anything to the
contrary in this Plan, if any Award is cancelled, forfeited or
terminated for any reason prior to exercise or becoming vested
in full, the shares of Common Stock that were subject to such
Award shall, to the extent cancelled, forfeited or terminated,
immediately become available for future Awards granted under the
Plan as if said Award had never been granted; provided, however,
that any shares of Common Stock subject to an Award, other than
a Stock Appreciation Right, which is cancelled, forfeited or
terminated in order to pay the Exercise Price, purchase price or
any taxes or tax withholdings on an Award shall not be available
for future Awards granted under the Plan. Any Common Stock
subject to a Stock Appreciation Right which is not issued upon
settling such Stock Appreciation Right shall be available for
future Awards granted under the Plan.
(f) Recapitalization. If the
outstanding shares of Common Stock are increased or decreased or
changed into or exchanged for a different number or kind of
shares or other securities of Swisher by reason of any
recapitalization, reclassification, reorganization, stock split,
reverse split, combination of shares, exchange of shares, stock
dividend or other distribution payable in capital stock of
Swisher or other increase or decrease in such shares effected
without receipt of consideration by Swisher occurring after the
Effective Date, an appropriate and proportionate adjustment
shall be made by the Committee to (i) the aggregate number
and kind of shares of Common Stock available under the Plan,
(ii) the aggregate limit of the number of shares of Common
Stock that may be granted pursuant to an Incentive Stock Option,
(iii) the aggregate limit of the number of shares of Common
Stock that may be issued in connection with Awards, other than
Stock Options and Stock Appreciation Rights, that are settled in
Common Stock, (iv) the limits on the number of shares of
Common Stock that may be granted to an Eligible Employee in any
one fiscal year, (v) the calculation of the reduction or
increase of shares of Common Stock available under the Plan,
(vi) the number and kind of shares of Common Stock issuable
upon exercise (or vesting) of outstanding Awards granted under
the Plan;
and/or
(vii) the Exercise Price of outstanding Options granted
under the Plan. No fractional shares of Common Stock or units of
other securities shall be issued pursuant to any such adjustment
under this Section 5(f), and any fractions resulting from
any such adjustment shall be eliminated in each case by rounding
downward to the nearest whole share or unit. Any adjustments
made under this Section 5(f) with respect to any Incentive
Stock Options must be made in accordance with Code
Section 424.
6. OPTIONS
(a) Grant of Options. Subject to
the terms and conditions of the Plan, the Committee may grant to
such Eligible Individuals as the Committee may determine,
Options to purchase such number of shares of Common Stock and on
such terms and conditions as the Committee shall determine in
its sole and absolute discretion. Each grant of an Option shall
satisfy the requirements set forth in this Section.
(b) Type of Options. Each Option
granted under the Plan may be designated by the Committee, in
its sole discretion, as either (i) an Incentive Stock
Option, or (ii) a Non-Qualified Stock Option. Options
designated as Incentive Stock Options that fail to continue to
meet the requirements of Code Section 422 shall be
re-designated as Non-Qualified Stock Options automatically on
the date of such failure to continue to meet such requirements
without further action by the Committee. In the absence of any
designation, Options granted under the Plan will be deemed to be
Non-Qualified Stock Options.
(c) Exercise Price. Subject to the
limitations set forth in the Plan relating to Incentive Stock
Options, the Exercise Price of an Option shall be fixed by the
Committee and stated in the respective Award Agreement, provided
that the Exercise Price of the shares of Common Stock subject to
such Option may not
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be less than Fair Market Value of such Common Stock on the Grant
Date, or if greater, the par value of the Common Stock.
(d) Limitation on
Repricing. Unless such action is approved by
Swishers shareholders in accordance with applicable law:
(i) no outstanding Option granted under the Plan may be
amended to provide an Exercise Price that is lower than the
then-current Exercise Price of such outstanding Option (other
than adjustments to the Exercise Price pursuant to
Sections 5(e) and 12); (ii) the Committee may not
cancel any outstanding Option and grant in substitution
therefore new Awards under the Plan covering the same or a
different number of shares of Common Stock and having an
Exercise Price lower than the then-current Exercise Price of the
cancelled Option (other than adjustments to the Exercise Price
pursuant to Sections 5(e) and 12); and (iii) the
Committee may not authorize the repurchase of an outstanding
Option which has an Exercise Price that is higher than the
then-current fair market value of the Common Stock (other than
adjustments to the Exercise Price pursuant to Sections 5(e)
and 12).
(e) Limitation on Option
Period. Subject to the limitations set forth
in the Plan relating to Incentive Stock Options and unless
otherwise provided by the Committee, Options granted under the
Plan and all rights to purchase Common Stock thereunder shall
terminate no later than the tenth anniversary of the Grant Date
of such Options, or on such earlier date as may be stated in the
Award Agreement relating to such Option. In the case of Options
expiring prior to the tenth anniversary of the Grant Date, the
Committee may in its discretion, at any time prior to the
expiration or termination of said Options, extend the term of
any such Options for such additional period as it may determine,
but in no event beyond the tenth anniversary of the Grant Date
thereof.
(f) Limitations on Incentive Stock
Options. Notwithstanding any other provisions
of the Plan, the following provisions shall apply with respect
to Incentive Stock Options granted pursuant to the Plan.
(i) Limitation on
Grants. Incentive Stock Options may only be
granted to Section 424 Employees. The aggregate Fair Market
Value (determined at the time such Incentive Stock Option is
granted) of the shares of Common Stock for which any individual
may have Incentive Stock Options which first become vested and
exercisable in any calendar year (under all incentive stock
option plans of the Company) shall not exceed $100,000. Options
granted to such individual in excess of the $100,000 limitation,
and any Options issued subsequently which first become vested
and exercisable in the same calendar year, shall automatically
be treated as Non-Qualified Stock Options.
(ii) Minimum Exercise Price. In no
event may the Exercise Price of a share of Common Stock subject
an Incentive Stock Option be less than 100% of the Fair Market
Value of such share of Common Stock on the Grant Date.
(iii) Ten Percent
Shareholder. Notwithstanding any other
provision of the Plan to the contrary, in the case of Incentive
Stock Options granted to a Section 424 Employee who, at the
time the Option is granted, owns (after application of the rules
set forth in Code Section 424(d)) stock possessing more
than ten percent of the total combined voting power of all
classes of stock of Swisher, such Incentive Stock Options
(i) must have an Exercise Price per share of Common Stock
that is at least 110% of the Fair Market Value as of the Grant
Date of a share of Common Stock, and (ii) must not be
exercisable after the fifth anniversary of the Grant Date.
(g) Vesting Schedule and
Conditions. No Options may be exercised prior
to the satisfaction of the conditions and vesting schedule
provided for in the Award Agreement relating thereto or in the
Plan.
(h) Exercise. When the conditions
to the exercise of an Option have been satisfied, the
Participant may exercise the Option only in accordance with the
following provisions. The Participant shall deliver to Swisher a
written notice stating that the Participant is exercising the
Option and specifying the number of shares of Common Stock which
are to be purchased pursuant to the Option, and such notice
shall be accompanied by payment in full of the Exercise Price of
the shares for which the Option is being exercised, by one or
more of the methods provided for in the Plan. Unless otherwise
provided by the Committee, said notice must be delivered to
Swisher at its principal office and addressed to the attention
of Chief Financial Officer. An
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attempt to exercise any Option granted hereunder other than as
set forth in the Plan shall be invalid and of no force and
effect.
(i) Payment. Payment of the
Exercise Price for the shares of Common Stock purchased pursuant
to the exercise of an Option shall be made by one of the
following methods:
(i) by cash, certified or cashiers check, bank draft
or money order;
(ii) except for any Participant who is subject to taxation
in Canada, through the delivery to Swisher of shares of Common
Stock which have been previously owned by the Participant for
the requisite period necessary to avoid a charge to
Swishers earnings for financial reporting purposes; such
shares shall be valued, for purposes of determining the extent
to which the Exercise Price has been paid thereby, at their Fair
Market Value on the date of exercise; without limiting the
foregoing, the Committee may require the Participant to furnish
an opinion of counsel acceptable to the Committee to the effect
that such delivery would not result in Swisher incurring any
liability under Section 16(b) of the Exchange Act;
(iii) through a cashless exercise sale and remittance
procedure pursuant to which the Participant shall
concurrently provide irrevocable instructions (A) to a
brokerage firm approved by the Committee to effect the immediate
sale of the purchased shares and remit to Swisher, out of the
sale proceeds available on the settlement date, sufficient funds
to cover the aggregate Exercise Price payable for the purchased
shares plus all applicable federal, state and local income,
employment, excise, foreign and other taxes required to be
withheld by the Company by reason of such exercise and
(B) to Swisher to deliver the certificates for the
purchased shares directly to such brokerage firm in order to
complete the sale; or
(iv) by any other method which the Committee, in its sole
and absolute discretion and to the extent permitted by
applicable law, may permit.
(j) Termination of Employment, Disability or
Death. Unless otherwise provided in an Award
Agreement, upon the termination of the employment or other
service of a Participant with Company for any reason, all of the
Participants outstanding Options (whether vested or
unvested) shall be subject to the rules of this paragraph. Upon
such termination, the Participants unvested Options shall
expire. Notwithstanding anything in this Plan to the contrary,
the Committee may provide, in its sole and absolute discretion,
that following the termination of employment or other service of
a Participant with the Company for any reason (i) any
unvested Options held by the Participant that vest solely upon a
future service requirement shall vest in whole or in part, at
any time subsequent to such termination of employment or other
service, and or (ii) a Participant or the
Participants estate, devisee or heir at law (whichever is
applicable), may exercise an Option, in whole or in part, at any
time subsequent to such termination of employment or other
service and prior to the termination of the Option pursuant to
its terms. Unless otherwise determined by the Committee,
temporary absence from employment because of illness, vacation,
approved leaves of absence or military service shall not
constitute a termination of employment or other service.
(i) Termination for Reason Other Than Cause,
Disability or Death. If a Participants
termination of employment or other service is for any reason
other than death, Disability, Cause or a voluntary termination
within ninety (90) days after occurrence of an event which
would be grounds for termination of employment or other service
by the Company for Cause, any Option held by such Participant,
may be exercised, to the extent exercisable at termination, by
the Participant at any time within a period not to exceed ninety
(90) days from the date of such termination, but in no
event after the termination of the Option pursuant to its terms.
(ii) Disability. If a
Participants termination of employment or other service
with the Company is by reason of a Disability of such
Participant, the Participant shall have the right at any time
within a period not to exceed one (1) year after such
termination, but in no event after the termination of the Option
pursuant to its terms, to exercise, in whole or in part, any
vested portion of the Option held by such Participant at the
date of such termination; provided, however, that if the
Participant dies within such period, any vested Option held by
such Participant upon death shall be exercisable by the
Participants estate, devisee or heir at law (whichever is
applicable) for a period not to exceed one (1) year after
the Participants death, but in no event after the
termination of the Option pursuant to its terms.
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(iii) Death. If a Participant dies
while in the employment or other service of the Company, the
Participants estate or the devisee named in the
Participants valid last will and testament or the
Participants heir at law who inherits the Option has the
right, at any time within a period not to exceed one
(1) year after the date of such Participants death,
but in no event after the termination of the Option pursuant to
its terms, to exercise, in whole or in part, any portion of the
vested Option held by such Participant at the date of such
Participants death.
(iv) Termination for Cause. In the
event the termination is for Cause or is a voluntary termination
within ninety (90) days after occurrence of an event which
would be grounds for termination of employment or other service
by the Company for Cause (without regard to any notice or cure
period requirement), any Option held by the Participant at the
time of such termination shall be deemed to have terminated and
expired upon the date of such termination.
7. RESTRICTED STOCK
(a) Grant of Restricted
Stock. Subject to the terms and conditions of
the Plan, the Committee may grant to such Eligible Individuals
as the Committee may determine, Restricted Stock, in such
amounts and on such terms and conditions as the Committee shall
determine in its sole and absolute discretion. Each grant of
Restricted Stock shall satisfy the requirements as set forth in
this Section.
(b) Restrictions. The Committee
shall impose such restrictions on any Restricted Stock granted
pursuant to the Plan as it may deem advisable including, without
limitation; time based vesting restrictions, or the attainment
of Performance Goals. Shares of Restricted Stock subject to the
attainment of Performance Goals will be released from
restrictions only after the attainment of such Performance Goals
has been certified by the Committee in accordance with
Section 10(d).
(c) Certificates and Certificate
Legend. With respect to a grant of Restricted
Stock, Swisher may issue a certificate evidencing such
Restricted Stock to the Participant or issue and hold such
shares of Restricted Stock for the benefit of the Participant
until the applicable restrictions expire. Swisher may legend the
certificate representing Restricted Stock to give appropriate
notice of such restrictions. In addition to any such legends,
each certificate representing shares of Restricted Stock granted
pursuant to the Plan shall bear the following legend:
The sale or other transfer of the shares of stock
represented by this certificate, whether voluntary, involuntary,
or by operation of law, are subject to certain terms,
conditions, and restrictions on transfer as set forth in The
Amended and Restated Swisher Hygiene Inc. 2010 Stock Incentive
Plan (the Plan), and in an Agreement entered into by
and between the registered owner of such shares and Swisher
Hygiene Inc (the Company),
dated
(the Award Agreement). A copy of the Plan and the
Award Agreement may be obtained from the Secretary of the
Company.
(d) Removal of
Restrictions. Except as otherwise provided in
the Plan, shares of Restricted Stock shall become freely
transferable by the Participant upon the lapse of the applicable
restrictions. Once the shares of Restricted Stock are released
from the restrictions, the Participant shall be entitled to have
the legend required by paragraph (c) above removed
from the share certificate evidencing such Restricted Stock and
the Company shall pay or distribute to the Participant all
dividends and distributions, if any, held in escrow by the
Company with respect to such Restricted Stock.
(e) Shareholder Rights. Unless
otherwise provided in an Award Agreement, until the expiration
of all applicable restrictions, (i) the Restricted Stock
shall be treated as outstanding, (ii) the Participant
holding shares of Restricted Stock may exercise full voting
rights with respect to such shares, and (iii) the
Participant holding shares of Restricted Stock shall be entitled
to receive all dividends and other distributions paid with
respect to such shares while they are so held. If any such
dividends or distributions are paid in shares of Common Stock,
such shares shall be subject to the same restrictions on
transferability and forfeitability as the shares of Restricted
Stock with respect to which they were paid. Notwithstanding
anything to the contrary, at the discretion of the Committee,
all such dividends and distributions may be held in escrow by
the Company (subject to the same restrictions on forfeitability)
until all restrictions on the respective Restricted Stock have
lapsed.
B-6
(f) Termination of Service. Unless
otherwise provided in a Award Agreement, if a Participants
employment or other service with the Company terminates for any
reason, all unvested shares of Restricted Stock held by the
Participant and any dividends or distributions held in escrow by
Swisher with respect to such Restricted Stock shall be forfeited
immediately and returned to the Company. Notwithstanding this
paragraph, all grants of Restricted Stock that vest
solely upon the attainment of Performance Goals shall be treated
pursuant to the terms and conditions that would have been
applicable under Section 10(e) as if such grants of
Restricted Stock were Awards of Performance Shares.
Notwithstanding anything in this Plan to the contrary, the
Committee may provide, in its sole and absolute discretion, that
following the termination of employment or other service of a
Participant with the Company for any reason, any unvested shares
of Restricted Stock held by the Participant that vest solely
upon a future service requirement shall vest in whole or in
part, at any time subsequent to such termination of employment
or other service.
8. RESTRICTED STOCK UNITS. Subject to the
terms and conditions of the Plan, the Committee may grant to
such Eligible Individuals as the Committee may determine,
Restricted Stock Units, in such amounts and on such terms and
conditions as the Committee shall determine in its sole and
absolute discretion. Each grant of Restricted Stock Units shall
satisfy the requirements as set forth in this Section.
(a) Award and
Restrictions. Restricted Stock Units shall be
subject to such restrictions on transferability, risk of
forfeiture and other restrictions, if any, as the Committee may
impose, which restrictions may lapse separately or in
combination at such times, under such circumstances (including
based on achievement of performance conditions
and/or
future service requirements), in such installments or otherwise
and under such other circumstances as the Committee may
determine at the date of grant or thereafter. Unless otherwise
provided in the Award Agreement, and permitted by then
applicable regulatory rules and policies including the TSX
Policies, a Participant granted Restricted Stock Units shall not
have any of the rights of a stockholder, including the right to
vote or the right to dividends, until Common Stock shall have
been issued in the Participants name pursuant to the
Restricted Stock Units, except that the Committee may provide
for Dividend Equivalents pursuant to Section 8(c) below.
(b) Limitation on Vesting and
Payouts. The grant, issuance, retention,
vesting
and/or
settlement of Restricted Stock Units shall occur at such time
and in such installments as set forth in the Award Agreement.
Notwithstanding anything to the contrary herein, unless provided
otherwise in the Award Agreement, Restricted Stock Units shall
be paid on or after January 1 and on or before March 15 of the
year immediately following the year in which Restricted Stock
Units vest. The Committee shall have the right to make the
timing of the grant
and/or the
issuance, ability to retain, vesting
and/or
settlement of Restricted Stock Units subject to continued
employment, passage of time
and/or such
performance conditions as deemed appropriate by the Committee.
(c) Dividend Equivalents. Unless
otherwise provided in the Award Agreement, Dividend Equivalents
with respect to Common Stock covered by vested Restricted Stock
Units shall be paid at the time the shares of Common Stock under
the Restricted Stock Units are issued to the Participant in
either cash or Common Stock having a Fair Market Value equal to
the amount of such Dividend Equivalents, as the Committee shall
determine or permit a Participant to elect.
(d) Termination of
Employment. Unless otherwise provided in an
Award Agreement or in the Plan, if a Participants
employment or other service with the Company terminates for any
reason, all of the Participants outstanding unvested
Restricted Stock Units shall immediately terminate and be
forfeited to the Company. Notwithstanding this paragraph,
all grants of Restricted Stock Units that vest solely upon
the attainment of Performance Goals shall be treated pursuant to
the terms and conditions that would have been applicable under
Section 10(e) as if such grants of Restricted Stock Units
were Awards of Performance Units. Notwithstanding anything in
this Plan to the contrary, the Committee may provide, in its
sole and absolute discretion, that following the termination of
employment or other service of a Participant with the Company
for any reason, any unvested shares of Restricted Stock Units
held by the Participant that vest solely upon a future service
requirement shall vest in whole or in part, at any time
subsequent to such termination of employment or other service.
B-7
9. STOCK APPRECIATION RIGHTS
(a) Grant of Stock Appreciation
Rights. Subject to the terms and conditions
of the Plan, the Committee may grant to such Eligible
Individuals as the Committee may determine, Stock Appreciation
Rights, in such amounts and on such terms and conditions as the
Committee shall determine in its sole and absolute discretion.
Each grant of a Stock Appreciation Right shall satisfy the
requirements as set forth in this Section.
(b) Terms and Conditions of Stock Appreciation
Rights. Unless otherwise provided in an Award
Agreement, the terms and conditions (including, without
limitation, the limitations on the Exercise Price, exercise
period, repricing and termination) of the Stock Appreciation
Right shall be substantially identical (to the extent possible
taking into account the differences related to the character of
the Stock Appreciation Right) to the terms and conditions that
would have been applicable under Section 6 above were the
grant of the Stock Appreciation Rights a grant of an Option.
(c) Exercise of Stock Appreciation
Rights. Stock Appreciation Rights shall be
exercised by a Participant only by written notice delivered to
the Chief Financial Officer of Swisher, specifying the number of
shares of Common Stock with respect to which the Stock
Appreciation Right is being exercised.
(d) Payment of Stock Appreciation
Right. Unless otherwise provided in an Award
Agreement, upon exercise of a Stock Appreciation Right, the
Participant or Participants estate, devisee or heir at law
(whichever is applicable) shall be entitled to receive payment,
in cash, in shares of Common Stock, or in a combination thereof,
as determined by the Committee in its sole and absolute
discretion. The amount of such payment shall be determined by
multiplying the excess, if any, of the Fair Market Value of a
share of Common Stock on the date of exercise over the Fair
Market Value of a share of Common Stock on the Grant Date, by
the number of shares of Common Stock with respect to which the
Stock Appreciation Rights are then being exercised.
Notwithstanding the foregoing, the Committee may limit in any
manner the amount payable with respect to a Stock Appreciation
Right by including such limitation in the Award Agreement.
10. PERFORMANCE SHARES AND PERFORMANCE UNITS
(a) Grant of Performance Shares and Performance
Units. Subject to the terms and conditions of
the Plan, the Committee may grant to such Eligible Individuals
as the Committee may determine, Performance Shares and
Performance Units, in such amounts and on such terms and
conditions as the Committee shall determine in its sole and
absolute discretion. Each grant of a Performance Share or a
Performance Unit shall satisfy the requirements as set forth in
this Section.
(b) Performance Goals. Performance
Goals will be based on one or more of the following criteria, as
determined by the Committee in its absolute and sole discretion:
(i) the attainment of certain target levels of, or a
specified increase in, Swishers enterprise value or value
creation targets; (ii) the attainment of certain target
levels of, or a percentage increase in, Swishers after-tax
or pre-tax profits including, without limitation, that
attributable to Swishers continuing
and/or other
operations; (iii) the attainment of certain target levels
of, or a specified increase relating to, Swishers
operational cash flow or working capital, or a component
thereof; (iv) the attainment of certain target levels of,
or a specified decrease relating to, Swishers operational
costs, or a component thereof (v) the attainment of a
certain level of reduction of, or other specified objectives
with regard to limiting the level of increase in all or a
portion of bank debt or other of Swishers long-term or
short-term public or private debt or other similar financial
obligations of Swisher, which may be calculated net of cash
balances
and/or other
offsets and adjustments as may be established by the Committee;
(vi) the attainment of a specified percentage increase in
earnings per share or earnings per share from Swishers
continuing operations; (vii) the attainment of certain
target levels of, or a specified percentage increase in,
Swishers net sales, revenues, net income or earnings
before income tax or other exclusions; (viii) the
attainment of certain target levels of, or a specified increase
in, Swishers return on capital employed or return on
invested capital; (ix) the attainment of certain target
levels of, or a percentage increase in, Swishers after-tax
or pre-tax return on shareholder equity; (x) the attainment
of certain target levels in the fair market value of
Swishers Common Stock; (xi) the growth in the value
of an investment in the Common Stock assuming the reinvestment
of dividends; (xii) successful mergers, acquisitions of
other companies or assets and any cost savings or synergies
associated therewith
and/or
(xiii) the attainment of certain target levels of, or a
specified
B-8
increase in, EBITDA (earnings before income tax, depreciation
and amortization). In addition, Performance Goals may be based
upon the attainment by a subsidiary, division or other
operational unit of Swisher of specified levels of performance
under one or more of the measures described above. Further, the
Performance Goals may be based upon the attainment by Swisher
(or a subsidiary, division, facility or other operational unit
of Swisher) of specified levels of performance under one or more
of the foregoing measures relative to the performance of other
corporations. With respect to Awards intended to qualify as
performance-based compensation under Section 162(m) of the
Code, to the extent permitted under Section 162(m) of the
Code (including, without limitation, compliance with any
requirements for shareholder approval), the Committee may, in
its sole and absolute discretion: (i) designate additional
business criteria upon which the Performance Goals may be based;
(ii) modify, amend or adjust the business criteria
described herein; or (iii) incorporate in the Performance
Goals provisions regarding changes in accounting methods,
corporate transactions (including, without limitation,
dispositions or acquisitions) and similar events or
circumstances. Performance Goals may include a threshold level
of performance below which no Award will be earned, levels of
performance at which an Award will become partially earned and a
level at which an Award will be fully earned.
(c) Terms and Conditions of Performance Shares and
Performance Units. The applicable Award
Agreement shall set forth (i) the number of Performance
Shares or the dollar value of Performance Units granted to the
Participant; (ii) the Performance Period and Performance
Goals with respect to each such Award; (iii) the threshold,
target and maximum shares of Common Stock or dollar values of
each Performance Share or Performance Unit and corresponding
Performance Goals, and (iv) any other terms and conditions
as the Committee determines in its sole and absolute discretion.
The Committee shall establish, in its sole and absolute
discretion, the Performance Goals for the applicable Performance
Period for each Performance Share or Performance Unit granted
hereunder. Performance Goals for different Participants and for
different grants of Performance Shares and Performance Units
need not be identical. Unless otherwise provided in an Award
Agreement, the Participants rights as a shareholder in
Performance Shares shall be substantially identical to the terms
and conditions that would have been applicable under
Section 7 above if the Performance Shares were Restricted
Stock. Unless otherwise provided in an Award Agreement or in
this Section 10 and unless permitted by then applicable
regulatory rules and policies including the TSX Policies, the
Participants rights as a shareholder in Performance Units
shall be substantially identical to the terms and conditions
that would have been applicable under Section 8 above if
the Performance Units were Restricted Stock Units. No payments
shall be made with respect to unvested Performance Shares and
Performance Units.
(d) Determination and Payment of Performance Units or
Performance Shares Earned. As soon as
practicable after the end of a Performance Period, the Committee
shall determine the extent to which Performance Shares or
Performance Units have been earned on the basis of the
Companys actual performance in relation to the established
Performance Goals as set forth in the applicable Award Agreement
and shall certify these results in writing. On the last day of
the second month following the end of the calendar year in which
the Committee has certified the results in writing, the amounts
payable or distributable with respect to Performance Shares or
Performance Units shall be paid or distributed to the
Participant or the Participants estate, devisee or heir at
law (whichever is applicable). Unless otherwise provided in an
Award Agreement, the Committee shall determine in its sole and
absolute discretion whether payment with respect to the
Performance Share or Performance Unit shall be made in cash, in
shares of Common Stock, or in a combination thereof. For
purposes of making payment or a distribution with respect to a
Performance Share or Performance Unit, the cash equivalent of a
share of Common Stock shall be determined by the Fair Market
Value of the Common Stock on the day the Committee designates
the Performance Shares or Performance Units to be payable.
(e) Termination of
Employment. Unless otherwise provided in an
Award Agreement, if a Participants employment or other
service with the Company terminates for any reason, all of the
Participants outstanding Performance Shares and
Performance Units shall be subject to the rules of this Section.
(i) Termination for Reason Other Than Death or
Disability. If a Participants
employment or other service with the Company terminates prior to
the expiration of a Performance Period with respect to any
Performance Units or Performance Shares held by such Participant
for any reason other than death or Disability, the outstanding
Performance Units or Performance Shares held by such Participant
for which
B-9
the Performance Period has not yet expired shall terminate upon
such termination and the Participant shall have no further
rights pursuant to such Performance Units or Performance Shares.
(ii) Termination of Employment for Death or
Disability. If a Participants
employment or other service with the Company terminates by
reason of the Participants death or Disability prior to
the end of a Performance Period, the Participant, or the
Participants estate, devisee or heir at law (whichever is
applicable) shall be entitled to a payment of the
Participants outstanding Performance Units and Performance
Share at the end of the applicable Performance Period, pursuant
to the terms of the Plan and the Participants Award
Agreement; provided, however, that the Participant shall
be deemed to have earned only that proportion (to the nearest
whole unit or share) of the Performance Units or Performance
Shares granted to the Participant under such Award as the number
of full months of the Performance Period which have elapsed
since the first day of the Performance Period for which the
Award was granted to the end of the month in which the
Participants termination of employment or other service,
bears to the total number of months in the Performance Period,
subject to the attainment of the Performance Goals associated
with the Award as certified by the Committee. The right to
receive any remaining Performance Units or Performance Shares
shall be canceled and forfeited.
11. OTHER AWARDS
Provided that such Awards are in compliance with all then
applicable regulatory rules and polices including the TSX
Policies, Awards of shares of Common Stock, phantom stock and
other awards that are valued in whole or in part by reference
to, or otherwise based on, Common Stock, may also be made, from
time to time, to Eligible Individuals as may be selected by the
Committee. Such Common Stock may be issued in satisfaction of
awards granted under any other plan sponsored by the Company or
compensation payable to an Eligible Individual. In addition,
such awards may be made alone or in addition to or in connection
with any other Award granted hereunder. The Committee may
determine the terms and conditions of any such award. Each such
award shall be evidenced by an Award Agreement between the
Eligible Individual and the Company which shall specify the
number of shares of Common Stock subject to the award, any
consideration therefore, any vesting or performance requirements
and such other terms and conditions as the Committee shall
determine in its sole and absolute discretion.
12. CHANGE IN CONTROL
Unless otherwise provided in an Award Agreement, upon the
occurrence of a Change in Control of Swisher, the Committee may
in its sole and absolute discretion, provide on a case by case
basis that (i) some or all outstanding Awards may become
immediately exercisable or vested, without regard to any
limitation imposed pursuant to this Plan, (ii) that all
Awards shall terminate, provided that Participants shall have
the right, immediately prior to the occurrence of such Change in
Control and during such reasonable period as the Committee in
its sole discretion shall determine and designate, to exercise
any vested Award in whole or in part, (iii) that all Awards
shall terminate, provided that Participants shall be entitled to
a cash payment equal to the Change in Control Price with respect
to shares subject to the vested portion of the Award net of the
Exercise Price thereof (if applicable), (iv) provide that,
in connection with a liquidation or dissolution of Swisher,
Awards shall convert into the right to receive liquidation
proceeds net of the Exercise Price (if applicable) and
(v) any combination of the foregoing. In the event that the
Committee does not terminate or convert an Award upon a Change
in Control of Swisher, then the Award shall be assumed, or
substantially equivalent Awards shall be substituted, by the
acquiring, or succeeding corporation (or an affiliate thereof).
13. CHANGE IN STATUS OF PARENT OR SUBSIDIARY
Unless otherwise provided in an Award Agreement or otherwise
determined by the Committee, in the event that an entity or
business unit which was previously a part of the Company is no
longer a part of the Company, as determined by the Committee in
its sole discretion, the Committee may, in its sole and absolute
discretion: (i) provide on a case by case basis that some
or all outstanding Awards held by a Participant employed by or
performing service for such entity or business unit may become
immediately exercisable or vested, without regard to any
limitation imposed pursuant to this Plan; (ii) provide on a
case by case basis that some or all outstanding Awards held by a
Participant employed by or performing service for such entity or
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business unit may remain outstanding, may continue to vest,
and/or may
remain exercisable for a period not exceeding one (1) year,
subject to the terms of the Award Agreement and this Plan;
and/or
(ii) treat the employment or other services of a
Participant employed by such entity or business unit as
terminated if such Participant is not employed by Swisher or any
entity that is a part of the Company immediately after such
event.
14. REQUIREMENTS OF LAW
(a) Violations of Law. The Company
shall not be required to sell or issue any shares of Common
Stock under any Award if the sale or issuance of such shares
would constitute a violation by the individual exercising the
Award, the Participant or the Company of any provisions of any
law or regulation of any governmental authority, including
without limitation any provisions of the Sarbanes-Oxley Act, and
any other federal or state securities laws or regulations. Any
determination in this connection by the Committee shall be
final, binding, and conclusive. The Company shall not be
obligated to take any affirmative action in order to cause the
exercise of an Award, the issuance of shares pursuant thereto or
the grant of an Award to comply with any law or regulation of
any governmental authority.
(b) Registration. At the time of
any exercise or receipt of any Award, the Company may, if it
shall determine it necessary or desirable for any reason,
require the Participant (or Participants heirs, legatees
or legal representative, as the case may be), as a condition to
the exercise or grant thereof, to deliver to the Company a
written representation of present intention to hold the shares
for their own account as an investment and not with a view to,
or for sale in connection with, the distribution of such shares,
except in compliance with applicable federal and state
securities laws with respect thereto. In the event such
representation is required to be delivered, an appropriate
legend may be placed upon each certificate delivered to the
Participant (or Participants heirs, legatees or legal
representative, as the case may be) upon the Participants
exercise of part or all of the Award or receipt of an Award and
a stop transfer order may be placed with the transfer agent.
Each Award shall also be subject to the requirement that, if at
any time the Company determines, in its discretion, that the
listing, registration or qualification of the shares subject to
the Award upon any securities exchange or under any state,
provincial or federal law, or the consent or approval of any
governmental regulatory body, is necessary or desirable as a
condition of or in connection with, the issuance or purchase of
the shares thereunder, the Award may not be exercised in whole
or in part and the restrictions on an Award may not be removed
unless such listing, registration, qualification, consent or
approval shall have been effected or obtained free of any
conditions not acceptable to the Company in its sole discretion.
The Participant shall provide the Company with any certificates,
representations and information that the Company requests and
shall otherwise cooperate with the Company in obtaining any
listing, registration, qualification, consent or approval that
the Company deems necessary or appropriate. The Company shall
not be obligated to take any affirmative action in order to
cause the exercisability or vesting of an Award, to cause the
exercise of an Award or the issuance of shares pursuant thereto,
or to cause the grant of Award to comply with any law or
regulation of any governmental authority.
(c) Withholding. The Committee may
make such provisions and take such steps as it may deem
necessary or appropriate for the withholding of the minimum
amount of taxes that the Company is required by any law or
regulation of any governmental authority, whether federal,
provincial, state or local, domestic or foreign, to withhold in
connection with the grant or exercise of an Award, or the
removal of restrictions on an Award including, but not limited
to: (i) the withholding of delivery of shares of Common
Stock until the holder reimburses the Company for the amount the
Company is required to withhold with respect to such taxes;
(ii) the canceling of any number of shares of Common Stock
issuable in an amount sufficient to reimburse the Company for
the amount it is required to so withhold; (iii) withholding
the amount due from any such persons wages or compensation
due to such person; (iv) the cancelling of a portion of the
Options, Restricted Share Units, Performance Units or other
Awards or (v) requiring the Participant to pay the Company
cash in the amount the Company is required to withhold with
respect to such taxes.
(d) Governing Law. The Plan shall
be governed by, and construed and enforced in accordance with,
the laws of the State of Delaware.
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15. GENERAL PROVISIONS
(a) Award Agreements. All Awards
granted pursuant to the Plan shall be evidenced by an Award
Agreement. Each Award Agreement shall specify the terms and
conditions of the Award granted and shall contain any additional
provisions as the Committee shall deem appropriate, in its sole
and absolute discretion (including, to the extent that the
Committee deems appropriate, provisions relating to
confidentiality, non-competition, non-solicitation and similar
matters). The terms of each Award Agreement need not be
identical for Eligible Individuals provided that all Award
Agreements comply with the terms of the Plan.
(b) Purchase Price. To the extent
the purchase price of any Award granted hereunder is less than
par value of a share of Common Stock and such purchase price is
not permitted by applicable law, the per share purchase price
shall be deemed to be equal to the par value of a share of
Common Stock.
(c) Dividends and Dividend
Equivalents. Except as provided by the
Committee in its sole and absolute discretion or as otherwise
provided in Section 5(f) and subject to Section 7(e),
8(c) and 10(c) of the Plan, a Participant shall not be entitled
to receive, currently or on a deferred basis, cash or stock
dividends, Dividend Equivalents, or cash payments in amounts
equivalent to cash or stock dividends on shares of Commons Stock
covered by an Award which has not vested or an Option. The
Committee in its absolute and sole discretion may credit a
Participants Award with Dividend Equivalents with respect
to any Awards. To the extent that dividends and distributions
relating to an Award are held in escrow by the Company, or
Dividend Equivalents are credited to an Award, a Participant
shall not be entitled to any interest on any such amounts. The
Committee may not grant Dividend Equivalents to an Award subject
to performance-based vesting to the extent that the grant of
such Dividend Equivalents would limit the Companys
deduction of the compensation payable under such Award for
federal tax purposes pursuant to Code Section 162(m).
(d) Deferral of Awards. The
Committee may from time to time establish procedures pursuant to
which a Participant may elect to defer, until a time or times
later than the vesting of an Award, receipt of all or a portion
of the shares of Common Stock or cash subject to such Award and
to receive Common Stock or cash at such later time or times, all
on such terms and conditions as the Committee shall determine.
The Committee shall not permit the deferral of an Award unless
counsel for Swisher determines that such action will not result
in adverse tax consequences to a Participant under
Section 409A of the Code. If any such deferrals are
permitted, then notwithstanding anything to the contrary herein,
a Participant who elects to defer receipt of Common Stock shall
not have any rights as a shareholder with respect to deferred
shares of Common Stock unless and until shares of Common Stock
are actually delivered to the Participant with respect thereto,
except to the extent otherwise determined by the Committee.
(e) Prospective
Employees. Notwithstanding anything to the
contrary, any Award granted to a Prospective Employee shall not
become vested prior to the date the Prospective Employee first
becomes an employee of the Company.
(f) Issuance of Certificates; Shareholder
Rights. Swisher shall deliver to or as
directed by the Participant a certificate evidencing the
Participants ownership of shares of Common Stock issued
pursuant to the exercise of an Award as soon as administratively
practicable after satisfaction of all conditions relating to the
issuance of such shares. A Participant shall not have any of the
rights of a shareholder with respect to such Common Stock prior
to satisfaction of all conditions relating to the issuance of
such Common Stock, and, except as expressly provided in the
Plan, no adjustment shall be made for dividends, distributions
or other rights of any kind for which the record date is prior
to the date on which all such conditions have been satisfied.
(g) Transferability of Awards. A
Participant may not Transfer an Award other than by will or the
laws of descent and distribution. Awards may be exercised during
the Participants lifetime only by the Participant. No
Award shall be liable for or subject to the debts, contracts, or
liabilities of any Participant, nor shall any Award be subject
to legal process or attachment for or against such person. Any
purported Transfer of an Award in contravention of the
provisions of the Plan shall have no force or effect and shall
be null and void, and the purported transferee of such Award
shall not acquire any rights with respect to such Award.
Notwithstanding anything to the contrary, the Committee may in
its sole and absolute discretion permit the
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Transfer of an Award to a Participants family
member as such term is defined in the
Form 8-A
Registration Statement under the Securities Act of 1933, as
amended, under such terms and conditions as specified by the
Committee. In such case, such Award shall be exercisable only by
the transferee approved of by the Committee. To the extent that
the Committee permits the Transfer of an Incentive Stock Option
to a family member, so that such Option fails to
continue to satisfy the requirements of an incentive stock
option under the Code such Option shall automatically be
re-designated as a Non-Qualified Stock Option.
(h) Buyout and Settlement
Provisions. Except as prohibited in
Section 6(e) of the Plan, the Committee may at any time on
behalf of Swisher offer to buy out any Awards previously granted
based on such terms and conditions as the Committee shall
determine which shall be communicated to the Participants at the
time such offer is made.
(i) Use of Proceeds. The proceeds
received by Swisher from the sale of Common Stock pursuant to
Awards granted under the Plan shall constitute general funds of
Swisher.
(j) Modification or Substitution of an
Award. Subject to the terms and conditions of
the Plan, the Committee may modify outstanding Awards.
Notwithstanding the following, no modification of an Award shall
adversely affect any rights or obligations of the Participant
under the applicable Award Agreement without the
Participants consent. The Committee in its sole and
absolute discretion may rescind, modify, or waive any vesting
requirements or other conditions applicable to an Award.
Notwithstanding the foregoing, without the approval of the
shareholders of Swisher in accordance with applicable law, an
Award may not be modified to reduce the exercise price thereof
nor may an Award at a lower price be substituted for a surrender
of an Award, provided that the foregoing shall not apply to
adjustments or substitutions in accordance with Section 5
or Section 12.
(k) Amendment and Termination of
Plan. The Board may, at any time and from
time to time, amend, suspend or terminate the Plan as to any
shares of Common Stock as to which Awards have not been granted;
provided, however, that the approval of the shareholders
of Swisher in accordance with applicable law, the Articles of
Incorporation and Bylaws of Swisher as well as the rules of any
stock exchange or automated quotation system on which the Common
Stock may be listed or traded shall be required for any
amendment: (i) that changes the class of individuals
eligible to receive Awards under the Plan; (ii) that
increases the maximum number of shares of Common Stock in the
aggregate that may be subject to Awards that are granted under
the Plan (except as permitted under Section 5 or
Section 12 hereof); (iii) the approval of which is
necessary to comply with federal or state law (including without
limitation Section 162(m) of the Code and
Rule 16b-3
under the Exchange Act); (iv) any amendment to increase or
remove the insider participation limit set forth in
Section 5(c) hereof; or (v) that proposed to eliminate
a requirement provided herein that the shareholders of Swisher
must approve an action to be undertaken under the Plan. Subject
to the foregoing sentence and Sections 6(d) and 15(j)
hereof, the approval of shareholders of Swisher shall not be
required for any amendment of the Plan. Except as permitted
under Section 5 or Section 12 hereof, no amendment,
suspension or termination of the Plan shall, without the consent
of the holder of an Award, alter or impair rights or obligations
under any Award theretofore granted under the Plan. Awards
granted prior to the termination of the Plan may extend beyond
the date the Plan is terminated and shall continue subject to
the terms of the Plan as in effect on the date the Plan is
terminated.
(l) Section 409A of the
Code. The Plan is intended to provide for
deferral of compensation for purposes of Section 409A of
the Code, by means of complying with
Section 1.409A-1(b)(4)
and/or
Section 1.409A-1(b)(5)
of the final Treasury regulations issued under Section 409A
of the Code. The provisions of the Plan shall be interpreted in
a manner that satisfies the requirements of
Section 1.409A-1(b)(4)
and/or
Section 1.409A-1(b)(5)
of the final Treasury regulations issued under Section 409A
of the Code and the Plan shall be operated accordingly. If any
provision of the Plan or any term or condition of any Award
would otherwise frustrate or conflict with this intent, the
provision, term or condition will be interpreted and deemed
amended so as to avoid this conflict.
In the event that following the application of the immediately
preceding paragraph, any Award is subject to Section 409A
of the Code, the provisions of Section 409A of the Code and
the regulations issued thereunder are incorporated herein by
reference to the extent necessary for any Award that is subject
Section 409A of the
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Code to comply therewith. In such event, the provisions of the
Plan shall be interpreted in a manner that satisfies the
requirements of Section 409A of the Code and the related
regulations, and the Plan shall be operated accordingly. If any
provision of the Plan or any term or condition of any Award
would otherwise frustrate or conflict with this intent, the
provision, term or condition will be interpreted and deemed
amended so as to avoid this conflict.
Notwithstanding any other provisions of the Plan, the Company
does not guarantee to any Participant or any other person that
any Award intended to be exempt from Section 409A of the
Code shall be so exempt, nor that any Award intended to comply
with Section 409A of the Code shall so comply, nor will the
Company indemnify, defend or hold harmless any individual with
respect to the tax consequences of any such failure.
(m) Notification of 83(b)
Election. If in connection with the grant of
any Award a Participant makes an election permitted under Code
Section 83(b), such Participant must notify the Company in
writing of such election within ten (10) days of filing
such election with the Internal Revenue Service.
(n) Disclaimer of Rights. No
provision in the Plan, any Award granted hereunder, or any Award
Agreement entered into pursuant to the Plan shall be construed
to confer upon any individual the right to remain in the employ
of or other service with the Company or to interfere in any way
with the right and authority of the Company either to increase
or decrease the compensation of any individual, including any
holder of an Award, at any time, or to terminate any employment
or other relationship between any individual and the Company.
The grant of an Award pursuant to the Plan shall not affect or
limit in any way the right or power of the Company to make
adjustments, reclassifications, reorganizations or changes of
its capital or business structure or to merge, consolidate,
dissolve or liquidate, or to sell or transfer all or any part of
its business or assets.
(o) Unfunded Status of Plan. The
Plan is intended to constitute an unfunded plan for
incentive and deferred compensation. With respect to any
payments as to which a Participant has a fixed and vested
interest but which are not yet made to such Participant by the
Company, nothing contained herein shall give any such
Participant any rights that are greater than those of a general
creditor of the Company.
(p) Nonexclusivity of Plan. The
adoption of the Plan shall not be construed as creating any
limitations upon the right and authority of the Board to adopt
such other incentive compensation arrangements (which
arrangements may be applicable either generally to a class or
classes of individuals or specifically to a particular
individual or individuals) as the Board in its sole and absolute
discretion determines desirable.
(q) Other Benefits. No Award
payment under the Plan shall be deemed compensation for purposes
of computing benefits under any retirement plan of the Company
or any agreement between a Participant and the Company, nor
affect any benefits under any other benefit plan of the Company
now or subsequently in effect under which benefits are based
upon a Participants level of compensation.
(r) Headings. The section headings
in the Plan are for convenience only; they form no part of this
Agreement and shall not affect its interpretation.
(s) Pronouns. The use of any
gender in the Plan shall be deemed to include all genders, and
the use of the singular shall be deemed to include the plural
and vice versa, wherever it appears appropriate from the context.
(t) Successors and Assigns. The
Plan shall be binding on all successors of the Company and all
successors and permitted assigns of a Participant, including,
but not limited to, a Participants estate, devisee, or
heir at law.
(u) Severability. If any provision
of the Plan or any Award Agreement shall be determined to be
illegal or unenforceable by any court of law in any
jurisdiction, the remaining provisions hereof and thereof shall
be severable and enforceable in accordance with their terms, and
all provisions shall remain enforceable in any other
jurisdiction.
(v) Notices. Unless otherwise
provided by the Committee, any communication or notice required
or permitted to be given under the Plan shall be in writing, and
mailed by registered or certified mail or delivered
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by hand, to Swisher, to its principal place of business,
attention: Chief Financial Officer, Swisher Hygiene Inc., and if
to the holder of an Award, to the address as appearing on the
records of the Company.
(w) Termination of Employment or
Service. To the extent required by applicable
law, for purposes of the Plan termination of employment or
service shall be deemed to have occurred on the last day of
active employment or service with the Company and specifically
the date of termination shall not include any period of
reasonable notice that the Company may be required by law to
provide to the Participant.
(x) Personal Information. A
Participant shall provide Swisher with all information
(including personal information) required by Swisher to
administer the Plan. The Participant acknowledges that
information required by Swisher to administer the Plan may be
disclosed to a custodian or such third parties outside of the
Participants jurisdiction of residence. The Participant consents
and authorizes the Company to make such disclosure on the
Participants behalf.
B-15
APPENDIX A
DEFINITIONS
Award means any Common Stock, Option,
Performance Share, Performance Unit, Restricted Stock,
Restricted Stock Unit, Stock Appreciation Right or any other
award granted pursuant to the Plan.
Award Agreement means a written agreement
entered into by Swisher and a Participant setting forth the
terms and conditions of the grant of an Award to such
Participant.
Board means the board of directors of Swisher.
Cause means, with respect to a termination of
employment or other service with the Company, a termination of
employment or other service due to a Participants
dishonesty, fraud, insubordination, willful misconduct, refusal
to perform services (for any reason other than illness or
incapacity) or materially unsatisfactory performance of the
Participants duties for the Company; provided, however,
that if the Participant and the Company have entered into an
employment agreement or consulting agreement which defines the
term Cause, the term Cause shall be defined in accordance with
such agreement with respect to any Award granted to the
Participant on or after the effective date of the respective
employment or consulting agreement. The Committee shall
determine in its sole and absolute discretion whether Cause
exists for purposes of the Plan.
Change in Control shall be deemed to occur
upon:
(a) any person as such term is used in
Sections 13(d) and 14(d) of the Exchange Act (other than
Swisher, any trustee or other fiduciary holding securities under
any employee benefit plan of the Company, or any company owned,
directly or indirectly, by the shareholders of Swisher in
substantially the same proportions as their ownership of common
stock of Swisher), is or becomes the beneficial
owner (as defined in
Rule 13d-3
under the Exchange Act), directly or indirectly, of securities
of Swisher representing thirty percent (30%) or more of the
combined voting power of Swishers then outstanding
securities;
(b) during any period of two (2) consecutive years,
individuals who at the beginning of such period constitute the
Board, and any new director (other than a director designated by
a person who has entered into an agreement with the Company to
effect a transaction described in paragraph (a), (c), or
(d) of this Section) whose election by the Board or
nomination for election by Swishers shareholders was
approved by a vote of at least two-thirds of the directors then
still in office who either were directors at the beginning of
the two-year period or whose election or nomination for election
was previously so approved, cease for any reason to constitute
at least a majority of the Board;
(c) a merger, consolidation, reorganization, or other
business combination of Swisher with any other entity, other
than a merger or consolidation which would result in the voting
securities of Swisher outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity)
more than fifty percent (50%) of the combined voting power of
the voting securities of Swisher or such surviving entity
outstanding immediately after such merger or consolidation;
provided, however, that a merger or consolidation effected to
implement a recapitalization of Swisher (or similar transaction)
in which no person acquires thirty percent (30%) or more of the
combined voting power of Swishers then outstanding
securities shall not constitute a Change in Control; or
(d) the shareholders of Swisher approve a plan of complete
liquidation of Swisher or the consummation of the sale or
disposition by Swisher of all or substantially all of
Swishers assets other than (x) the sale or
disposition of all or substantially all of the assets of Swisher
to a person or persons who beneficially own, directly or
indirectly, at least fifty percent (50%) or more of the combined
voting power of the outstanding voting securities of Swisher at
the time of the sale or (y) pursuant to a spin-off type
transaction, directly or indirectly, of such assets to the
shareholders of Swisher.
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However, to the extent that Section 409A of the Code would
cause an adverse tax consequence to a Participant using the
above definition, the term Change in Control shall
have the meaning ascribed to the phrase Change in the
Ownership or Effective Control of a Corporation or in the
Ownership of a Substantial Portion of the Assets of a
Corporation under Treasury Department
Regulation 1.409A-3(i)(5),
as revised from time to time, and in the event that such
regulations are withdrawn or such phrase (or a substantially
similar phrase) ceases to be defined, as determined by the
Committee.
Change in Control Price means the price per
share of Common Stock paid in any transaction related to a
Change in Control of Swisher.
Code means the Internal Revenue Code of 1986,
as amended, and the regulations promulgated thereunder.
Committee means a committee or
sub-committee
of the Board consisting of two or more members of the Board,
none of whom shall be an officer or other salaried employee of
the Company, and each of whom shall qualify in all respects as a
non-employee director as defined in
Rule 16b-3
under the Exchange Act, and as an outside director
for purposes of Code Section 162(m). If no Committee
exists, the functions of the Committee will be exercised by the
Board; provided, however, that a Committee shall be
created prior to the grant of Awards to a Covered Employee and
that grants of Awards to a Covered Employee shall be made only
by such Committee. Notwithstanding the foregoing, with respect
to the grant of Awards to non-employee directors, the Committee
shall be the Board.
Common Stock means the common stock, par
value $0.001 per share, of Swisher.
Company means Swisher, the subsidiaries of
Swisher, and all other entities whose financial statements are
required to be consolidated with the financial statements of
Swisher pursuant to United States generally accepted accounting
principles, and any other entity determined to be an affiliate
of Swisher as determined by the Committee in its sole and
absolute discretion.
Covered Employee means covered
employee as defined in Code Section 162(m)(3).
Covered Individual means any current or
former member of the Committee, any current or former officer or
director of the Company, or any individual designated pursuant
to Section 4(c).
Disability means a permanent and total
disability within the meaning of Code
Section 22(e)(3); provided, however, that if a
Participant and the Company have entered into an employment or
consulting agreement which defines the term Disability for
purposes of such agreement, Disability shall be defined pursuant
to the definition in such agreement with respect to any Award
granted to the Participant on or after the effective date of the
respective employment or consulting agreement. The Committee
shall determine in its sole and absolute discretion whether a
Disability exists for purposes of the Plan.
Dividend Equivalents means an amount equal to
the cash dividends paid by the Company upon one share of Common
Stock subject to an Award granted to a Participant under the
Plan.
Effective Date shall mean the date that the
Plan was approved by the shareholders of Swisher in accordance
with the laws of the State of Delaware or such later date as
provided in the resolutions adopting the Plan.
Eligible Individual means any employee,
officer, director (employee or non-employee director) or
consultant of the Company and, to the extent permitted by
applicable law, including the law of Canada, any Prospective
Employee to whom Awards are granted in connection with an offer
of future employment with the Company, provided, however, that
for purposes of granting Options and Stock Appreciation Rights
there shall be excluded from the definition of Eligible
Individual any individual performing services for the Company,
who does not perform services for Swisher or any other entity
with respect which Common Stock is service recipient
stock as such term is defined for purposes of the Treasury
regulations promulgated under Section 409A of the Code.
Exchange Act means the Securities Exchange
Act of 1934, as amended.
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Exercise Price means the purchase price per
share of each share of Common Stock subject to an Award.
Fair Market Value means, unless otherwise
required by the Code, as of any date, the last sales price
reported for the Common Stock on the day immediately prior to
such date (i) as reported by the national securities
exchange in the United States on which it is then traded, or
(ii) if not traded on any such national securities
exchange, as quoted on an automated quotation system sponsored
by the National Association of Securities Dealers, Inc., or if
the Common Stock shall not have been reported or quoted on such
date, on the first day prior thereto on which the Common Stock
was reported or quoted; provided, however, that the
Committee may modify the definition of Fair Market Value to
reflect any changes in the trading practices of any exchange or
automated system sponsored by the National Association of
Securities Dealers, Inc. on which the Common Stock is listed or
traded. If the Common Stock is not readily traded on a national
securities exchange or any system sponsored by the National
Association of Securities Dealers, Inc., the Fair Market Value
shall be determined in good faith by the Committee.
Grant Date means the date on which the
Committee approves the grant of an Award or such later date as
is specified by the Committee and set forth in the applicable
Award Agreement.
Incentive Stock Option means an
incentive stock option within the meaning of Code
Section 422.
Insider shall primarily refer to:
(a) directors of the Company; and
(b) executive officers of the Company and any other person
or company responsible for a principal business unit, division
or function of Swisher;
and also includes any of the following persons to the extent
that such person receives an Award under the Plan:
(c) any person or company that has beneficial ownership of
and/or
control or direction over, whether direct or indirect,
securities of Swisher carrying more than 10 per cent of the
voting rights attached to all of Swishers outstanding
voting securities, or who would have such ownership
and/or
control or direction if all rights or obligations of the person
or company to acquire Swisher securities within the next
60 days were exercised or complied with;
(d) a director or executive officer of a company of a
person or company included in (c) above;
(e) a management company that provides significant
management or administrative services to the Company and every
director, executive officer or person or company that has
beneficial ownership of
and/or
control or direction over, whether direct or indirect,
securities of the management company carrying more than
10 per cent of the voting rights attached to all of the
management companys outstanding voting securities;
(f) any individual performing functions similar to the
functions performance by any of the persons or companies
included in (a) to (e) above; and
(g) any other person that (i) in the ordinary course
receives or has access to material facts or material changes
concerning Swisher before the material facts or material changes
are generally disclosed and (ii) directly or indirectly
exercises, or has the ability to exercise, significant power or
influence over the business, operations, capital or development
of Swisher.
Non-Qualified Stock Option means an Option
which is not an Incentive Stock Option.
Option means an option to purchase Common
Stock granted pursuant to Sections 6 of the Plan.
Participant means any Eligible Individual who
holds an Award under the Plan and any of such individuals
successors or permitted assigns.
Performance Goals means the specified
performance goals which have been established by the Committee
in connection with an Award.
B-18
Performance Period means the period during
which Performance Goals must be achieved in connection with an
Award granted under the Plan.
Performance Share means a right to receive a
fixed number of shares of Common Stock, or the cash equivalent,
which is contingent on the achievement of certain Performance
Goals during a Performance Period.
Performance Unit means a right to receive a
designated dollar value, or shares of Common Stock of the
equivalent value, which is contingent on the achievement of
Performance Goals during a Performance Period.
Person shall mean any person, corporation,
partnership, joint venture or other entity or any group (as such
term is defined for purposes of Section 13(d) of the
Exchange Act), other than a parent or subsidiary of Swisher.
Plan means this Amended and Restated Swisher
Hygiene Inc. 2010 Stock Incentive Plan.
Prospective Employee means any individual who
has committed to become an employee of the Company within sixty
(60) days from the date an Award is granted to such
individual, provided, however, that for purposes of granting
Options and Stock Appreciation Rights there shall be excluded
for the definition of Prospective Employee any individual who
does commit to perform services for Swisher or any other entity
with respect which Common Stock is service recipient
stock as such term is defined for purposes of the Treasury
regulations promulgated under Section 409A of the Code.
Restricted Stock means Common Stock subject
to certain restrictions, as determined by the Committee, and
granted pursuant to Section 7 hereunder.
Restricted Stock Unit means a right, granted
under Section 8 hereof, to receive Common Stock at the end
of a specified period.
Regulatory Approval means the approval of the
TSX, together with the approval of any other securities
regulatory authority that may have lawful jurisdiction over the
Plan and any Awards issued hereunder.
Section 424 Employee means an employee
of Swisher or any subsidiary corporation or
parent corporation as such terms are defined in and
in accordance with Code Section 424. The term
Section 424 Employee also includes employees of
a corporation issuing or assuming any Options in a transaction
to which Code Section 424(a) applies.
Stock Appreciation Right means the right to
receive all or some portion of the increase in value of a fixed
number of shares of Common Stock granted pursuant to
Section 9 hereunder.
Swisher means Swisher Hygiene Inc., a
Delaware Corporation, including any successor thereto by merger,
consolidation, acquisition or otherwise.
TSX means the Toronto Stock Exchange and any
successor thereto;
TSX Policies means the rules and policies of
the TSX, as amended from time to time.
Transfer means, as a noun, any direct or
indirect, voluntary or involuntary, exchange, sale, bequeath,
pledge, mortgage, hypothecation, encumbrance, distribution,
transfer, gift, assignment or other disposition or attempted
disposition of, and, as a verb, directly or indirectly,
voluntarily or involuntarily, to exchange, sell, bequeath,
pledge, mortgage, hypothecate, encumber, distribute, transfer,
give, assign or in any other manner whatsoever dispose or
attempt to dispose of.
B-19
Annex C
SWISHER
HYGIENE INC.
SENIOR
EXECUTIVE OFFICERS
PERFORMANCE
INCENTIVE BONUS PLAN
The purpose of this Plan is to attract, retain and motivate key
employees by providing cash performance bonuses to designated
key employees of the Company or its Subsidiaries. This Plan is
effective for fiscal years of the Company commencing on or after
January 1, 2011, subject to approval by the stockholders of
the Company in accordance with the laws of the State of Delaware.
Unless the context otherwise requires, the terms which follow
shall have the following meaning:
(a) Board shall mean the
Board of Directors of the Company.
(b) Cause shall mean, with respect to a
termination of employment or other service with the Company or
any Subsidiary, a termination of employment or other service due
to a Participants dishonesty, fraud, insubordination,
willful misconduct, refusal to perform services (for any reason
other than illness or incapacity) or materially unsatisfactory
performance of the Participants duties for the Company or
any Subsidiary; provided, however, that if the
Participant and the Company (or any Subsidiary) have entered
into an employment agreement or consulting agreement which
defines the term Cause, the term Cause shall be defined in
accordance with such agreement. The Committee shall determine in
its sole and absolute discretion whether Cause exists for
purposes of the Plan.
(c) Change of Control of the
Company shall have the meaning set forth
in Exhibit A hereto.
(d) Code shall mean the
Internal Revenue Code of 1986, as amended and any successor
thereto.
(e) Code Section 162(m)
Exception shall mean the exception for
performance based compensation under Section 162(m) of the
Code or any successor section and the Treasury regulations
promulgated thereunder.
(f) Company shall mean
Swisher Hygiene Inc. and any successor by merger, consolidation
or otherwise.
(g) Committee shall mean the
Compensation Committee of the Board or such other Committee of
the Board that is appointed by the Board to administer this
Plan; it is intended that all of the members of any such
Committee shall satisfy the requirements to be outside
directors, as defined under Code Section 162(m).
(h) Individual Target Bonus
shall mean the targeted Performance Bonus for a Performance
Period as specified by the Committee in accordance with
Section 5 hereof.
(i) Participant shall mean a
key employee of the Company or any Subsidiary selected, in
accordance with Section 4 hereof, to be eligible to receive
a Performance Bonus in accordance with this Plan.
(j) Performance Bonus shall
mean the amount paid or payable under Section 6 hereof.
(k) Performance Goals shall
mean the objective performance goals, formulas and standards
described in Section 6 hereof.
(l) Performance Period shall
mean the period of time, measured in Plan Years (as specified by
the Committee) over which achievement of the Performance Goals
is to be measured.
C-1
(m) Plan shall mean this
Swisher Hygiene Inc. Senior Executive Officers Performance
Incentive Bonus Plan.
(n) Plan Year shall mean a
fiscal year of the Company.
(o) Pro Rata Bonus shall
mean a portion of a Performance Bonus equal to the Performance
Bonus payable had the Participant continuously performed
services throughout the applicable Performance Period and
certification of applicable Performance Goals, multiplied by the
percentage of days during the Performance Period prior to the
date of termination during which the Participant was employed
by, or otherwise performed services for, the Company, as
compared to the number of days in such Performance Period.
(p) Subsidiary shall mean
any subsidiary of the Company, including any corporation,
limited liability company, partnership or other entity that is a
subsidiary of the Company, as determined by the Committee.
(q) Swisher Bonus Program shall mean a
program or annual bonus, established from time to time, setting
forth terms and conditions of Performance Bonuses under the
Plan, to the extent not inconsistent with the Plan.
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3.
|
ADMINISTRATION
AND INTERPRETATION OF THE PLAN
|
The Plan shall be administered by the Committee. The Committee
shall have the exclusive authority and responsibility to:
(i) interpret the Plan; (ii) approve the designation
of eligible Participants; (iii) set the performance
criteria for Performance Bonuses within the Plan guidelines;
(iv) determine the timing and form of amounts to be paid
out under the Plan and the conditions for payment thereof;
(v) certify attainment of Performance Goals and other
material terms; (vi) reduce Performance Bonuses as provided
herein; (vii) authorize the payment of all benefits and
expenses of the Plan as they become payable under the Plan;
(viii) adopt, amend and rescind rules and regulations
relating to the Plan; and (ix) make all other
determinations and take all other actions necessary or desirable
for the Plans administration, including, without
limitation, correcting any defect, supplying any omission or
reconciling any inconsistency in this Plan in the manner and to
the extent it shall deem necessary to carry this Plan into
effect, but only to the extent such action would be permitted
under Code Section 162(m) and the Code Section 162(m)
Exception.
All decisions of the Committee on any question concerning the
selection of Participants and the interpretation and
administration of the Plan shall be final, conclusive and
binding upon all parties. The Committee may rely on information,
and consider recommendations, provided by the Board or the
executive officers of the Company. The Plan is intended to
comply with Code Section 162(m) and the Code
Section 162(m) Exception, and all provisions contained
herein shall be limited, construed and interpreted in a manner
to so comply.
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4.
|
ELIGIBILITY
AND PARTICIPATION
|
(a) For each Performance Period, the Committee shall select
the employees of the Company or its Subsidiaries who are to
participate in the Plan from among the executive employees of
the Company or its Subsidiaries.
(b) No person shall be entitled to any Performance Bonus
under this Plan for a Performance Period unless the individual
is designated as a Participant for the Performance Period. The
Committee may add to or delete individuals from the list of
designated Participants at any time and from time to time, in
its sole discretion, subject to any limitations required to
comply with Code Section 162(m) and the Code
Section 162(m) Exception.
The terms and conditions of the Performance Bonuses shall be set
forth in this Plan and in any Swisher Bonus Program. For each
Participant for each Performance Period, the Committee may, in
its sole discretion,
C-2
specify an Individual Target Bonus. The Individual Target Bonus
may be expressed, at the Committees sole discretion, as a
fixed dollar amount, a percentage of base pay, or an amount
determined pursuant to an objective formula or standard. The
Committees establishment of an Individual Target Bonus for
a Participant for a Performance Period shall not imply or
require that the same level Individual Target Bonus (if any
such bonus is established by the Committee for the relevant
employee) be set for any other Performance Period. At the time
the Performance Goals are established (as provided in subsection
6.2 below), the Committee shall prescribe a formula to be used
to determine the percentages (which may be greater than
one-hundred percent (100%)) of an Individual Target Bonus that
may be earned or payable based upon the degree of attainment of
the Performance Goals during the Performance Period.
Notwithstanding anything else herein, the Committee may, in its
sole discretion, elect to pay a Participant an amount that is
less than the Participants Individual Target Bonus (or
attained percentages thereof) regardless of the degree of
attainment of the Performance Goals; provided that no such
discretion to reduce a Performance Bonus earned based on
achievement of the applicable Performance Goals shall be
permitted for the Performance Period in which a Change of
Control of the Company occurs, or during such Performance Period
with regard to the prior Performance Period if the Bonuses for
the prior Performance Period have not been made by the time of
the Change of Control of the Company, with regard to individuals
who were Participants at the time of the Change of Control of
the Company.
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6.
|
PERFORMANCE
BONUS PROGRAM
|
6.1 PERFORMANCE BONUSES. Subject to the
satisfaction of any conditions on payment, each Participant
shall be eligible to receive their Performance Bonus with
respect to the applicable Performance Period (or, subject to the
last sentence of Section 5, such lesser amount as
determined by the Committee in its sole discretion) based upon
the attainment of the Performance Goals established pursuant to
subsection 6.2 and the formula established pursuant to
Section 5. Unless otherwise provided in the Swisher Bonus
Program, no Performance Bonus shall be made to a Participant for
a Performance Period unless the applicable Performance Goals for
such Performance Period are attained.
6.2 OBJECTIVE PERFORMANCE GOALS, FORMULAE OR
STANDARDS. The Committee in its sole discretion
shall establish the objective performance goals, formulae or
standards and in the case of a covered employee, as
defined in Code Section 162(m)(3), the Performance Bonus
(if any) applicable to each Participant or class of Participants
for a Performance Period in writing prior to the beginning of
such Performance Period or at such later date as permitted under
Code Section 162(m) and the Code Section 162(m)
Exception and while the outcome of the Performance Goals are
substantially uncertain. Such Performance Goals may incorporate,
if and only to the extent permitted under Code
Section 162(m), provisions for disregarding (or adjusting
for) changes in accounting methods, corporate transactions
(including, without limitation, dispositions and acquisitions)
and similar type events or circumstances. To the extent any such
provision would create impermissible discretion under the Code
Section 162(m) Exception or otherwise violate the Code
Section 162(m) Exception, such provision shall be of no
force or effect. Performance Goals will be based on one or more
of the following criteria, as determined by the Committee in its
absolute and sole discretion: (i) the attainment of certain
target levels of, or a specified increase in, the Companys
enterprise value or value creation targets; (ii) the
attainment of certain target levels of, or a percentage increase
in, the Companys after-tax or pre-tax profits including,
without limitation, that attributable to the Companys
continuing
and/or other
operations; (iii) the attainment of certain target levels
of, or a specified increase relating to, the Companys
operational cash flow or working capital, or a component
thereof; (iv) the attainment of certain target levels of,
or a specified decrease relating to, the Companys
operational costs, or a component thereof (v) the
attainment of a certain level of reduction of, or other
specified objectives with regard to limiting the level of
increase in all or a portion of bank debt or other of the
Companys long-term or short-term public or private debt or
other similar financial obligations of the Company, which may be
calculated net of cash balances
and/or other
offsets and adjustments as may be established by the Committee;
(vi) the attainment of a specified percentage increase in
earnings per share or earnings per share from the Companys
continuing operations; (vii) the attainment of certain
target levels of, or a specified percentage increase in, the
Companys net sales, revenues, net income or earnings
before income tax or other exclusions; (viii) the
attainment of certain target levels of, or a specified increase
in, the Companys return on capital
C-3
employed or return on invested capital; (ix) the attainment
of certain target levels of, or a percentage increase in, the
Companys after-tax or pre-tax return on shareholder
equity; (x) the attainment of certain target levels in the
fair market value of the Companys common stock;
(xi) the growth in the value of an investment in the
Companys common stock assuming the reinvestment of
dividends; (xii) successful mergers, acquisitions of other
companies or assets and any cost savings or synergies associated
therewith
and/or
(xiii) the attainment of certain target levels of, or a
specified increase in, EBITDA (earnings before income tax,
depreciation and amortization).
In addition, Performance Goals may be based upon the attainment
by Subsidiary, division or other operational unit of the Company
of specified levels of performance under one or more of the
measures described above. Further, the Performance Goals may be
based upon the attainment by the Company (or Subsidiary,
division or other operational unit of the Company) of specified
levels of performance under one or more of the foregoing
measures relative to the performance of other corporations. To
the extent permitted under Code Section 162(m) of the Code
(including, without limitation, compliance with any requirements
for stockholder approval), the Committee may (i) designate
additional business criteria upon which the Performance Goals
may be based; (ii) modify, amend or adjust the business
criteria described herein or (iii) incorporate in the
Performance Goals provisions regarding changes in accounting
methods, corporate transactions (including, without limitation,
dispositions or acquisitions) and similar events or
circumstances. Performance Goals may include a threshold level
of performance below which no Performance Bonus will be earned,
levels of performance at which a Performance Bonus will become
partially earned and a level at which a Performance Bonus will
be fully earned.
6.3 MAXIMUM PERFORMANCE BONUS. The
maximum amount of Performance Bonuses payable to a Participant
during any one Plan Year is $1,500,000.
6.4 PAYMENT DATE; COMMITTEE
CERTIFICATION. The Performance Bonuses may be
paid at such time after the Performance Period in which they are
earned, as determined by the Committee but not before the
Committee certifies in writing that the Performance Goals
specified pursuant to subsection 6.2 were, in fact, satisfied.
The Committee may place such additional conditions on payment
thereof as it shall determine. Notwithstanding anything in this
Section 6.4 to the contrary, the payment of the Performance
Bonus shall be made during the calendar year immediately
following the calendar year in which the corresponding
Performance Period ends.
6.5 CLAWBACK. Unless otherwise provided
in the Swisher Bonus Program, if: a) the amount of the
Performance Bonus was calculated based upon the achievement of
certain financial results that were subsequently the subject of
a restatement, and b) the amount of the Performance Bonus
that would have been awarded to the Participant had the
financial results been properly reported would have been lower
than the amount actually awarded (such lower Performance Bonus
shall be referred to herein as the Restated Performance
Bonus), then the Board shall have the full and absolute
discretion, to the full extent permitted by governing law,
require reimbursement of any Performance Bonus under the Plan
(including any bonus or incentive compensation that has been
deferred) to the extent such Performance Bonus exceeds the
Restated Performance Bonus.
6.6 CONTINUOUS SERVICE
REQUIREMENT. Unless otherwise provided herein, in
the Swisher Bonus Program or in any written agreement between
the Company (or any Subsidiary) and the Participant, the
Participant must continuously perform services for the Company
or its Subsidiaries in the course of the Performance Period and
until Performance Bonuses for the applicable Performance Period
have been paid out pursuant to Section 6.4 hereof, in order
to be eligible for a Performance Bonus with respect to such
Performance Period. Unless otherwise provided by the Committee,
temporary absence from employment or other service including for
reasons such as illness, vacation, approved leaves of absence or
military service shall not constitute a termination of
employment or other service for purposes of the immediately
preceding sentence. Unless otherwise provided by applicable law,
if a Participant is temporary absent from employment or other
service including for reasons such as illness, vacation,
approved leaves of absence or military service for more than
4 weeks during the Performance Period, the Performance
Bonus for such Performance Period
C-4
the Participant would otherwise be eligible for shall be
prorated based on the number of weeks the Participant performed
services for the Company or any Subsidiary during the course of
the Performance Period.
Unless otherwise provided in the Swisher Bonus Program or in any
written agreement between the Company (or any Subsidiary) and
the Participant, the Participant shall be eligible for Pro Rata
Bonus, for a Performance Period in the event of death,
disability (within the meaning of Code
Section 22(e)(3)) or termination of employment or other
services within 12 months following the Change of Control
(other than for Cause) which occur prior to the Performance
Bonuses for the applicable Performance Period being paid out
pursuant to Section 6.4 hereof. Unless otherwise provided
in the Swisher Bonus Program, all such Pro Rata Bonuses shall be
contingent on achievements of the Performance Goals for the
applicable Performance Period.
No Performance Bonus under this Plan or payment thereof nor any
right or benefit under this Plan shall be subject to
anticipation, alienation, sale, assignment, pledge, encumbrance,
garnishment, execution or levy of any kind or charge, and any
attempt to anticipate, alienate, sell, assign, pledge, encumber
and to the extent permitted by applicable law, charge, garnish,
execute upon or levy upon the same shall be void and shall not
be recognized or given effect by the Company.
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9.
|
NO RIGHT
TO EMPLOYMENT
|
Nothing in the Plan or in any notice of bonus pursuant to the
Plan shall confer upon any person the right to continue in the
employment of the Company or one of its subsidiaries or
affiliates nor affect the right of the Company or any of its
subsidiaries or affiliates to terminate the employment of any
Participant.
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10.
|
AMENDMENT
OR TERMINATION
|
While the Company hopes to continue the Plan indefinitely, it
reserves the right in its Board (or a duly authorized committee
thereof) to amend, suspend or terminate the Plan or any bonus
thereunder, or to adopt a new plan in place of this Plan at any
time; provided, that no such amendment shall, without the prior
approval of the stockholders of the Company in accordance with
the laws of the State of Delaware to the extent required under
Code Section 162(m): (i) alter the Performance Goals
as set forth in Section 6.2; (ii) increase the maximum
amounts set forth in subsection 6.3; (iii) change the class
of eligible employees set forth in Section 4(a); or
(iv) implement any change to a provision of the Plan
requiring stockholder approval in order for the Plan to continue
to comply with the requirements of the Code Section 162(m)
Exception. Furthermore, unless explicitly provided herein, no
amendment, suspension or termination shall, without the consent
of the Participant, alter or impair a Participants right
to receive payment of a Performance Bonus for a Performance
Period otherwise payable hereunder.
In the event that any one or more of the provisions contained in
the Plan shall, for any reason, be held to be invalid, illegal
or unenforceable, in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of the
Plan and the Plan shall be construed as if such invalid, illegal
or unenforceable provisions had never been contained therein.
The Company shall have the right to make such provisions as it
deems necessary or appropriate to satisfy any obligations it may
have to withhold federal, state or local income or other taxes
incurred by reason of payments pursuant to the Plan.
C-5
This Plan and any amendments thereto shall be construed,
administered, and governed in all respects in accordance with
the laws of the State of Delaware (regardless of the law that
might otherwise govern under applicable principles of conflict
of laws).
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14.
|
IRS CODE
SECTION 409A.
|
14.1 GENERAL. It is the intention of both
the Company and the Participant that the benefits and rights to
which the Participant is entitled pursuant to this Plan are
exempt from or comply with Section 409A of the Code, and
the regulations issued thereunder (collectively Code
Section 409A) to the extent that the requirements of
Code Section 409A are applicable thereto, and the
provisions of this Plan shall be construed in a manner
consistent with that intention. If the Participant or the
Company believes, at any time, that any such benefit or right
that is subject to Code Section 409A does not so comply, it
shall promptly advise the other and shall negotiate reasonably
and in good faith to amend the terms of such benefits and rights
such that they comply with Code Section 409A (with the most
limited possible economic effect on the Participant and on the
Company).
14.2 DISTRIBUTIONS ON ACCOUNT OF SEPARATION FROM
SERVICE. To the extent required to comply with
Code Section 409A, any payment or benefit required to be
paid under this Plan on account of termination of the
Participants employment, service (or any other similar
term) shall be made only in connection with a separation
from service with respect to the Participant within the
meaning of Code Section 409A.
14.3 NO ACCELERATION OF PAYMENTS. Neither
the Company nor the Participant, individually or in combination,
may accelerate any payment or benefit that is subject to Code
Section 409A, except in compliance with Code
Section 409A and the provisions of this Plan, and no amount
that is subject to Code Section 409A shall be paid prior to
the earliest date on which it may be paid without violating Code
Section 409A.
14.4 SIX MONTH DELAY FOR SPECIFIED
EMPLOYEES. In the event that the Participant is a
specified employee (as described in Code
Section 409A), and any payment or benefit payable pursuant
to this Plan constitutes deferred compensation under Code
Section 409A, then the Company and the Participant shall
cooperate in good faith to undertake any actions that would
cause such payment or benefit not to constitute deferred
compensation under Code Section 409A. In the event that,
following such efforts, the Company determines (after
consultation with its counsel) that such payment or benefit is
still subject to the six-month delay requirement described in
Code Section 409A(2)(b) in order for such payment or
benefit to comply with the requirements of Code
Section 409A, then no such payment or benefit shall be made
before the date that is six months after the Participants
separation from service (as described in Code
Section 409A) (or, if earlier, the date of the
Participants death). Any payment or benefit delayed by
reason of the prior sentence shall be paid out or provided in a
single lump sum at the end of such required delay period in
order to catch up to the original payment schedule.
C-6
EXHIBIT A
Change of Control of the Company shall mean that one of the
following has occurred:
(i) any person as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of
1934 (the Exchange Act) (other than the Company, any
trustee or other fiduciary holding securities under any employee
benefit plan of the Company, or any company owned, directly or
indirectly, by the stockholders of the Company in substantially
the same proportions as their ownership of common stock of the
Company), is or becomes the beneficial owner (as
defined in
Rule 13d-3
under the Exchange Act), directly or indirectly, of securities
of the Company representing twenty-five percent (25%) or more of
the combined voting power of the Companys then outstanding
securities;
(ii) during any period of two (2) consecutive years
individuals who at the beginning of such period constitute the
Board, and any new director (other than a director designated by
a person who has entered into an agreement with the Company to
effect a transaction described in paragraph (i), (iii), or
(iv) of this section) whose election by the Board or
nomination for election by the Companys stockholders was
approved by a vote of at least two-thirds of the directors then
still in office who either were directors at the beginning of
the two-year period or whose election or nomination for election
was previously so approved, cease for any reason to constitute
at least a majority of the Board;
(iii) a merger or consolidation of the Company with any
other corporation, other than a merger or consolidation which
would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting
securities of the surviving entity) more than fifty percent
(50%) of the combined voting power of the voting securities of
the Company or such surviving entity outstanding immediately
after such merger or consolidation; provided, however, that a
merger or consolidation effected to implement a recapitalization
of the Company (or similar transaction) in which no person
acquires more than twenty-five percent (25%) of the combined
voting power of the Companys then outstanding securities
shall not constitute a Change of Control of the Company; or
(iv) the stockholders of the Company approve a plan of
complete liquidation of the Company or the consummation of the
sale or disposition by the Company of all or substantially all
of the Companys assets other than (x) the sale or
disposition of all or substantially all of the assets of the
Company to a person or persons who beneficially own, directly or
indirectly, at least fifty percent (50%) or more of the combined
voting power of the outstanding voting securities of the Company
at the time of the sale or (y) pursuant to a spinoff type
transaction, directly or indirectly, of such assets to the
stockholders of the Company.
C-7
PROXY
CARD
SWISHER
HYGIENE INC.
4725
Piedmont Row Drive
Suite 400
Charlotte, North Carolina 28210
ANNUAL
MEETING OF STOCKHOLDERS
OF SWISHER HYGIENE INC.
MAY 5, 2011
PROXY
This Proxy is solicited on behalf of the Board of Directors of
Swisher Hygiene Inc.
The undersigned hereby appoints Thomas Aucamp and Thomas Byrne,
and each of them, acting alone, with the power to appoint his
substitute, as proxies to represent the undersigned and vote as
designated on the reverse side, all of the shares of Common
Stock of Swisher Hygiene Inc. held of record by the undersigned
as of 5:00 p.m. Eastern Time on March 21, 2011, at the
Annual Meeting of Stockholders to be held at
9:00 a.m. Eastern Time on May 5, 2011 in the
Panorama Ballroom at the Hyatt Regency Pier 66, located at 2301
Southeast
17th
Street Causeway, Fort Lauderdale, Florida 33316, and at any
adjournment or postponement thereof. If you will need directions
to the annual meeting, or if you require special assistance at
the annual meeting because of a disability, please contact Amy
Simpson at (704) 602-7116.
Please complete, date and sign this Proxy on the reverse
side, and mail it promptly in the enclosed envelope.
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY
MATERIALS FOR THE ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON
MAY 5, 2011
The accompanying proxy statement and the 2010 Annual Report on
Form 10-K
are available at
http://www.swisherhygiene.com
VOTE BY MAIL
Mark, sign and date your proxy card and return it to
Equity Financial Trust Company,
Proxy Department, 200 University Avenue,
4th Floor, Toronto, Ontario M5H 4H1
by 11:59 P.M. Eastern Daylight Time on May 4,
2011.
VOTE BY FACSIMILE
(416) 595-9593
Mark, sign and date your proxy card and fax it to
(416) 595-9593
by 11:59 P.M. Eastern Daylight Time on May 4,
2011.
VOTE BY INTERNET
www.voteproxyonline.com
Use the Internet to transmit your voting instructions by
11:59 P.M. Eastern Daylight Time on May 4, 2011.
(Continued and to be signed on the reverse side)
(continued
from reverse side)
The Board of Directors of Swisher Hygiene Inc. unanimously
recommends a vote FOR the election of each of the
nominees for director named in Proposal 1, FOR
Proposals 2, 3, 4, 5, 6, and 7 and for the selection of
3 YEARS for Proposal 8.
PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE.
PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN
HERE þ
1. The election of eight
members to Swisher Hygiene Inc.s Board of Directors, each
for a term expiring at the next Annual Meeting or until their
successors are duly elected and qualified.
NOMINEES:
H. Wayne Huizenga
Steven R. Berrard
David Braley
John Ellis Bush
Harris W. Hudson
William D. Pruitt
David Prussky
Michael Serruya
o FOR
ALL NOMINEES
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WITHHOLD AUTHORITY
FOR ALL NOMINEES
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FOR ALL EXCEPT
(See instructions below)
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INSTRUCTION: To withhold authority to vote for any individual
nominee(s), mark FOR ALL EXCEPT and write the
nominees name(s) below.
To change the address on your account, please check the box at
right and indicate your new address in the address space above.
Please note that changes to the registered name(s) on the
account may not be submitted via this
method. o
2. To approve an amendment to
Swisher Hygiene Inc.s certificate of incorporation to
increase the authorized number of shares of common stock from
400,000,000 to 600,000,000.
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FOR
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AGAINST
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ABSTAIN
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3. To approve an amendment to Swisher Hygiene Inc.s
certificate of incorporation to authorize 10,000,000 shares
of blank check preferred stock.
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FOR
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AGAINST
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ABSTAIN
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4. To approve an amendment to Swisher Hygiene Inc.s
certificate of incorporation to permit stockholders to act by
written consent.
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FOR
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AGAINST
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ABSTAIN
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5. To approve the Amended and Restated Swisher Hygiene Inc.
2010 Stock Incentive Plan and ratify awards previously granted
under the Plan.
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FOR
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AGAINST
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ABSTAIN
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6. To approve the Swisher Hygiene Inc. Senior Executive
Officers Performance Incentive Bonus Plan.
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FOR
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AGAINST
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ABSTAIN
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7. To obtain non-binding advisory approval of the
compensation of Swisher Hygiene Inc.s named executive
officers (Say on Pay).
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FOR
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AGAINST
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ABSTAIN
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8. To obtain non-binding advisory approval of three years
as the frequency of future Say on Pay votes.
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3 YEARS
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2 YEARS
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1 YEAR
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ABSTAIN
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9. In their discretion, the proxy holders are authorized to
vote upon such other matters as may properly come before the
meeting or any postponement or adjournment thereof.
THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER
DIRECTED HEREIN BY THE UNDERSIGNED. IF NO DIRECTION IS MADE,
THIS PROXY WILL BE VOTED FOR THE ELECTION OF EACH OF
THE NOMINEES FOR DIRECTOR NAMED IN PROPOSAL 1,
FOR PROPOSALS 2, 3, 4, 5, 6, AND 7, AND FOR
3 YEARS IN PROPOSAL 8.
PLEASE MARK, SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY USING
THE ENCLOSED ENVELOPE.
The undersigned acknowledges
receipt of the accompanying Notice of Annual Meeting of
Stockholders and Proxy Statement for the May 5, 2011
meeting.
Signature of
Stockholder
Date:
Signature of
Stockholder
Date:
NOTE: Please sign exactly as your name or names appear on this
Proxy. When shares are held jointly, each shareholder should
sign. When signing as executor, administrator, attorney, trustee
or guardian, please give full title as such. If the signer is a
corporation, please sign full corporate name by duly authorized
officer, giving full title as such. If signer is a partnership,
please sign in partnership name by authorized person.