Exhibit
10.1
 
INTEREST DEFERRAL AGREEMENT
 
THIS AGREEMENT is entered into as of January 23, 2009 by and between SMF Energy
Corporation (“SMF”) and the undersigned holder (“Holder”) of SMF’s Senior
Secured Convertible Promissory Note dated August 8, 2007 (the “Note”).

WHEREAS, SMF has determined that, in light of the distressed economic conditions
affecting SMF and its customers, it wishes to defer payment of the interest
payment (the “Payment”) that, according to the Note, is due and payable on
January 1, 2009 (the “Original Due Date”) until April 15, 2009 (the “Extension
Date”), and Holder is willing to agree to such deferral in exchange for the
immediate payment of a deferral fee equal to one percent (1%) of the current
outstanding balance of the Note (the “Deferral Fee”).

NOW, THEREFORE, in consideration of the mutual promises and other good and
valuable consideration set forth herein, SMF and Holder agree that:

1.           The Note is hereby amended to provide that the Payment is no longer
due or payable on the Original Due Date but is instead due and payable on the
Extension Date.  The rights and obligations of Holder and SMF with respect to
the Payment and the other terms of the Note are in all other respects unchanged.

2.           SMF shall pay the Deferral Fee immediately upon completion and
execution of this Agreement and the Investment Representation Statement attached
hereto.  Fifty percent (50%) of the Deferral Fee shall be paid in cash and fifty
percent shall be paid with unregistered shares of SMF’s common stock
(“Stock”).  The Stock shall be valued at $0.29 per share, which was the Official
Closing Price on the Nasdaq Stock Market on January 22, 2009, the trading day
immediately preceding the date of this Agreement.

3.           The Stock shall be deemed to be “Registrable Securities” under the
Registration Rights Agreement appended to the Securities Purchase Agreement (or
Note Purchase Agreement) between Holder and SMF relating to the purchase of the
Note, except that, because the shares of SMF common stock into which the Note
may be converted (the “Note Shares”) have already been registered with the SEC,
(a) Holder alone is entitled to demand registration of the Stock, (b) Holder
shall be deemed to have requested such registration immediately upon execution
of this Agreement and (c) in response to Holder’s demand, SMF agrees to use
reasonable commercial efforts to file a new registration statement with the SEC
covering the Stock (or amend the existing registration statement covering the
Note Shares to add the Stock to that registration statement) as soon as
practicable.  SMF further agrees to make reasonable commercial efforts to file
such registration statement or amendment within 60 days following the date
hereof and to cause such registration statement or amendment to become effective
within 120 days of the date hereof.

4.           (a)           The terms of this Agreement may not be amended except
by a writing signed by the parties; (b) No failure or delay by any party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof; (c) This Agreement shall be binding on and inure to the benefit of each
party hereto and his or its legal representatives, successors and assigns; (d)
This Agreement shall be governed by and construed in accordance with the law of
the State of Delaware, without regard to conflicts of law rules; (e) This
Agreement may be signed in counterparts, with the same effect as if the
signatures were upon the same instrument; (f) This Agreement constitutes the
entire agreement of the parties with respect to its subject matter and
supersedes all prior agreements and understandings relating thereto; (g) This
Agreement does not confer any rights or remedies upon any person other than the
parties hereto; and (h) If any provision of this Agreement shall be found to be
invalid, illegal or unenforceable, the remaining provisions shall not be
affected or impaired thereby.

 
 

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IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of
the date first above written.
 
 
 
 
 
 
 

 
SMF ENERGY CORPORATION
Accepted: February 3, 2009
           
By:
_________________________________
   
Richard E. Gathright,
   
Chief Executive Officer and President
       
HOLDER
      __________________________________________                Name of Holder
(printed or typed)       By: _______________________________________       (if
entity) Name & title:_________________________  
__________________________________________       Principal Amount of Note:
$_____________________       Total Deferral Fee $___________________________    
  Deferral Fee Cash $___________________________       Deferral Fee Shares
___________________________

 

 
 

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Attachment
to Interest Deferral Agreement

INVESTMENT REPRESENTATION STATEMENT
 

HOLDER:           __________________________________

COMPANY:      SMF ENERGY CORPORATION

SECURITY:       COMMON STOCK

NUMBER OF SHARES:         ________________________

In connection with the purchase of the above-listed securities (the
“Securities”), the undersigned (“Holder”) represents to Company the following:

(a)           Holder is aware of Company’s business affairs and financial
condition, and has acquired sufficient information about Company to reach an
informed and knowledgeable decision to acquire the Securities.  Holder is
purchasing these Securities for Holder’s own account for investment purposes
only and not with a view to, or for the resale in connection with, any
“distribution” thereof for purposes of the Securities Act of 1933, as amended
(the “Securities Act”).

(b)           Holder understands that the Securities have not been registered
under the Securities Act in reliance upon a specific exemption therefrom, which
exemption depends upon, among other things, the bona fide nature of Holder’s
investment intent as expressed herein.

(c)           Holder further understands that the Securities must be held
indefinitely unless subsequently registered under the Securities Act or unless
an exemption from registration is otherwise available.  In addition, Holder
understands that the certificate evidencing the Securities will be imprinted
with a legend that prohibits the transfer of the Securities unless they are
registered or such registration is not required in the opinion of counsel for
Company.

(d)           Holder is aware of the provisions of Rule 144, promulgated under
the Securities Act, which, in substance, permits limited public resale of
“restricted securities” acquired, directly or indirectly, from the issuer
thereof (or from an affiliate of such issuer), in a non- public offering subject
to the satisfaction of certain conditions.

(e)           Holder further understands that at the time Holder wishes to sell
the Securities there may be no public market upon which to make such a sale.

 
 

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(f)           Holder further understands that in the event all of the
requirements of Rule 144 are not satisfied, registration under the Securities
Act or compliance with another registration exemption will be required, and no
such exemption may be available.

Signature of Holder:

Date:_________     ___________________