Document:

Unassociated Document

    Exhibit
      10.1

     

    EMPLOYMENT
      AGREEMENT

     

    

    AGREEMENT
      dated as of September 22, 2006 by and between Sparta Commercial Services, Inc.,
      a Nevada corporation with an address at P.O. Box 60, New York, New York 10156
      (the “Company”)
      and
      Anthony W. Adler (“Executive”)
      with
      an address at 325 Prospect Avenue, Mamaroneck, NY 10543.

     

    WHEREAS,
      the Company and Executive wish to enter into an agreement relating to the
      employment of Executive by the Company;

     

    NOW,
      THEREFORE, in consideration of the premises and mutual covenants herein and
      for
      other good and valuable consideration, the parties agree as
      follows:

     

    1. Term
      of Employment. Subject to the provisions of Section 8 of this Agreement and
      on the other terms and subject to the conditions set forth herein, Executive
      shall be employed by the Company commencing on the date hereof (the
“Commencement Date”) and ending on the last day of the third anniversary of the
      Commencement Date (the “Employment Term”). Notwithstanding the preceding
      sentence, the Employment Term shall be extended for an additional one (1) year
      period upon the written agreement of the Company and Executive. Additional
      extensions may be agreed upon by the Company and Executive from time to time.
      “Employment Term” shall include any extension that becomes applicable pursuant
      to the preceding sentence.

     

    2. Position.

     

    (a) During
      the Employment Term, Executive shall serve as the Company’s Executive Vice
      President. In such position, Executive shall have the powers, duties and
      responsibilities that are customary for such position in a corporation of the
      size, type and nature of the Company and shall perform such other duties as
      the
      Company’s Board of Directors or Company’s Chief Executive Officer (“CEO”),
      as
      the case may be, shall determine in their reasonable discretion, including
      those
      duties currently performed on behalf of the Company’s affiliates. In addition,
      Executive shall act as the Company’s interim Chief Financial Officer commencing
      after the audit of the Company’s books and records for the fiscal year ended
      April 30, 2006 shall have been delivered and accepted by the Company and
      thereafter until his replacement shall have been appointed. Executive shall
      report exclusively to the Company’s CEO. Executive shall comply with all
      federal, state and local laws applicable to his duties and also shall comply
      with the rules and regulations of any self-regulatory organization (as such
      term
      is defined in Rule 3(a)(26) of the Securities Exchange Act of 1934, as amended
      (the “Exchange Act”)) having jurisdiction over the Company.

     

    (b) During
      the Employment Term, Executive will devote his full business time to the
      performance of his duties hereunder and will not engage in any other business,
      profession or occupation for compensation or otherwise which would conflict
      with
      the rendition of such services either directly or indirectly, without the prior
      written consent of the CEO. Nothing contained herein shall preclude Executive
      from (i) serving on corporate, civic and charitable boards or committees and
      (ii) managing his personal investments; provided
      that
      none of
      the
      activities set forth in clauses (i) and (ii) interfere in any material respect
      with the performance of Executive’s employment hereunder or conflict in any
      material respect with the business of the Company; and further provided that
      no
      such non-employment activities shall be conducted at the Company’s offices or
      using the Company’s facilities.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3. Base
      Salary. During
      the Employment Term, the Company shall pay Executive a base salary (the “Base
      Salary”) at the annual rate of $185,000 payable in regular installments in
      accordance with the Company’s usual payment practices. Executive shall be
      entitled to such annual increases in his Base Salary, if any, as may be
      determined in the sole discretion of the Company’s Board of Directors or of the
      Compensation Committee thereof.

     

    4. Additional
      Compensation. In
      addition to salary and other compensation specified in this agreement, Executive
      may from time to time, receive such additional compensation (“Additional
      Compensation”) from the Company in such form or forms as may be determined by
      the Company’s Board of Directors or the Compensation Committee thereof from time
      to time in order to more fully compensate Executive for the true value of his
      services to the Company. 

     

    5. Equity
      Arrangements.

     

    (a) Grant
      of Option.
      Executive shall be entitled to a grant of non-qualified options (the
“Grant”)
      to
      purchase up to 4,000,000 shares of the Company’s Common Stock, $.001 par value
      per share (the “Option Shares”), at a price equal to 110% of the average closing
      price of the Company’s Common Stock for the five (5) trading days immediately
      preceding the Commencement Date, subject to stock splits and to the terms of
      the
      Grant of Option set forth in Exhibit A hereto. Subject to Section 8 of this
      Agreement, Executive’s rights to such shares of stock shall vest as follows:

     

    (i) 20
      % of
      the Option Shares on the Commencement Date; 

     

    (ii) 20
      % the
      Option Shares on the first anniversary of the Commencement Date;

     

    (iii) 30
      % the
      Option Shares on the second anniversary of the Commencement Date;
      and

     

    (iv) 30%
      the
      Option Shares on the third anniversary of the Commencement Date.

     

    (b) Company
      Repurchase Option.
      Following the termination of Executive’s employment hereunder, if Executive
      determines to sell all or any portion of the Option Shares that he has purchased
      (other than Option Shares included in a registration statement filed under
      the
      Securities Act of 1933, as amended (the “Securities Act”)), Executive shall
      first offer to sell such Option Shares to the Company by providing written
      notice to the Company setting forth the number of Option Shares to be sold.
      If
      the Company elects to purchase all or part of such Option Shares so offered
      the
      purchase price per share therefor shall equal 90% of the average daily bid
      price
      per
      share of the Company’s Common Stock during the 7-trading day period following
      receipt by the Company of such notice. If the Company elects to purchase less
      than all of the Option Shares so offered, the purchase price per share shall
      be
      100% of the average daily bid price per share of the Company’s Common Stock
      during the 7-trading day period following receipt by the Company of such notice.
      The Company shall notify Executive in writing of its decision whether to
      purchase any or all of the Option Shares so offered within three days of the
      end
      of such 7-trading day period. If the Company elects to purchase such Shares,
      the
      Company shall pay the full purchase price therefor within thirty (30) days
      of
      the Company’s election to so purchase. If the Company does not so elect or fails
      to notify Executive of its election within the time specified herein, Executive
      shall be permitted to sell such Option Shares in the open market in accordance
      with the applicable rules and regulations of the Securities and Exchange
      Commission.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (c) Volume
      Limitation on Sales of Option Shares.
      If the
      Company elects not to purchase all of the Option Shares pursuant to Section
      5(b), Executive may sell any remaining Option Shares in the open market provided
      that the number of Option Shares Executive may sell in any one calendar month
      shall be the lesser of the average daily trading volume for the month
      immediately preceding such sale or the number of Option Shares Executive may
      sell pursuant to Rule 144 of the Securities Act.

     

    (d) Accelerated
      Vesting.
      If
      there shall be a change in control of the Company and this Agreement is not
      assumed by the person or entity acquiring control, all unvested Options shall
      be
      deemed vested on the date immediately prior to the event resulting in such
      change in control. For purposes of this Agreement, the phrase “change in
      control” shall mean:

     

    (i) a
      transaction in which any Person (as defined in Section 3(a)(9) of the Exchange
      Act) becomes the Beneficial Owner (as defined in Rule 13d-3 of the Exchange
      Act)
      (except that a Person shall be deemed to be the Beneficial Owner of all shares
      that any such Person has the right to acquire pursuant to any agreement or
      arrangement or upon exercise of conversion rights, warrants or options or
      otherwise, without regard to the sixty day period referred to in Rule 13d-3
      under the Exchange Act), directly or indirectly, of securities of the Company
      representing 50% or more of the combined voting power of the Company’s
      then-outstanding securities;

     

    (ii) during
      any period of two consecutive years, individuals who at the beginning of such
      period constitute the Board, and any new director whose election by the Board
      or
      nomination for election by the Company’s 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 but excluding for this
      purpose any such new director whose initial assumption of office occurs as
      a
      result of either an actual or threatened election contest (as such terms are
      used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or
      other actual or threatened
      solicitation of proxies or consents by or on behalf of an individual,
      corporation, or partnership, group, associate or other entity or Person other
      than the Board, cease for any reason to constitute at least a majority of the
      Board;

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (iii) the
      consummation of a merger or consolidation of the Company with any other entity,
      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 or resulting entity) more than 50% of the combined voting power
      of
      the surviving or resulting entity outstanding immediately after such merger
      or
      consolidation; or

     

    (iv) the
      Company disposes of all or substantially all of the consolidated assets of
      the
      Company (other than such a sale or disposition immediately after which such
      assets will be owned directly or indirectly by the shareholders of the Company
      in substantially the same proportions as their ownership of the common stock
      of
      the Company immediately prior to such sale or disposition). 

     

    (e) Registration
      Rights.
      If at
      any time the Company proposes to file a registration statement under the
      Securities Act with respect to an offering by the Company for its own account
      or
      for the account of any holders of the Company’s Common Stock or for an
      underwritten offering of the Company’s Common Stock (other than (i) a
      registration statement on Form S-4 or S-8 (or any substitute form that may
      be
      adopted by the Securities and Exchange Commission) or (ii) a registration
      statement filed in connection with an exchange offer or offering of securities
      solely to the Company’s existing security holders), then the Company shall give
      written notice of such proposed filing to Executive as soon as practicable
      (but
      in no event less than 20 days before the anticipated filing date), and such
      notice shall offer Executive the opportunity to register such number of Option
      Shares as Executive request (a “Piggy-Back Registration”).

    

    In
      the
      case of a registration statement filed by the Company for its own account or
      for
      the account of any holders of its Common Stock and not involving an underwritten
      offering of Common Stock, the number of Options Shares that Executive may
      include in such registration statement shall be unlimited. In the case of a
      registration statement involving an underwritten offering of the Company’s
      Common Stock, the Company shall use commercially reasonable efforts to cause
      the
      managing underwriter or underwriters of a proposed underwritten offering to
      permit the Option Shares requested by Executive to be included in a Piggy-Back
      Registration on the same terms and conditions as any similar securities of
      the
      Company or any other security holder included therein and to permit the sale
      or
      other disposition of such Option Shares in accordance with the intended method
      of distribution thereof; provided, however, that the determination of the
      managing underwriter or underwriters of such offering shall be conclusive as
      to
      the number of Option Shares to be included in such registration statement.
      Executive shall 

    have
      the
      right to withdraw his request for inclusion of any Option Shares in any
      registration statement by giving written notice to the Company of its request
      to
      withdraw. 

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    Executive’s
      right to participate in Piggy-Back Registrations shall continue until Executive
      is permitted to sell all of his Option Shares without restriction under Rule
      144
      of the Securities Act.

    

    6. Employee
      Benefits. During the Employment Term, Executive shall be provided, in
      accordance with the terms of the Company’s employee benefit plans as in effect
      from time to time, health insurance and short term and long term disability
      insurance, retirement benefits and fringe benefits (collectively “Employee
      Benefits”) on the same basis as those benefits are generally made available to
      other employees of the Company. Executive shall be entitled to paid vacation
      of
      four (4) weeks per annum during the first year Employment Term and five (5)
      weeks during each additional year of the Employment Term. Such vacation shall
      be
      taken at times consistent with the proper performance by the Executive of his
      duties and responsibilities and with the approval of the CEO. Vacation not
      taken
      in any calendar year shall not carry forward to any future year. Executive
      may
      work from home up to two (2) business days per month, subject to approval by
      the
      CEO. If Executive works from home more than two (2) business days per month,
      any
      such additional days shall be deducted first from Executive’s accrued but unused
      vacation days and then from allowable sick days, either in the calendar year
      in
      which such additional days are taken or the next succeeding calendar year,
      as
      applicable.

     

    

    7. Business
      Expenses. During the Employment Term, reasonable business expenses incurred
      by Executive in the performance of his duties hereunder shall be reimbursed
      by
      the Company in accordance with Company policies. 

     

    8. Termination.
      Notwithstanding any other provision of this Agreement:

     

    (a) By
      the
      Company for Cause or By Executive for Executive’s Convenience.
      

     

    (i) The
      Employment Term and Executive’s employment hereunder may be terminated by the
      Company for Cause (as defined below) or by Executive’s resignation for his
      convenience. 

     

    (ii) For
      purposes of this Agreement, “Cause”
shall
      mean (A) the Executive’s continued failure to substantially perform the
      duties of his position or breach of material terms of this Agreement, after
      notice (specifying the details of such alleged failure) and a reasonable
      opportunity to cure if such breach can be cured; (B) any willful act or omission
      which is demonstrably and materially injurious to the Company or any of its
      subsidiaries or affiliates; (C) conviction or plea of nolo contendere to a
      felony or other crime of moral turpitude other than involving acts of
      negligence; or (D) willful failure to carry out the legitimate directives of
      the
      Company’s Board of Directors or the CEO. No act or failure to act will be deemed
“willful” (i) unless effected without a reasonable belief
      that such action or failure to act was in or not opposed to the Company’s best
      interest; or (ii) if it results from any physical or mental
      incapacity.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (iii) If
      Executive’s employment is terminated by the Company for Cause, or if Executive
      resigns, Executive shall be entitled to receive (A) any accrued but unpaid
      Base Salary through the date of termination; (B) such compensation and Employee
      Benefits, if any, as to which Executive may be entitled under the employee
      compensation and benefit plans of the Company; (C) any reimbursable business
      expenses incurred; and (D) any accrued but unpaid Additional Compensation
      through the termination date. Following such termination of Executive’s
      employment by the Company for Cause or resignation by Executive, except as
      set
      forth in this Section 8(a), Executive shall have no further rights to any
      compensation or any other benefits under this Agreement, including without
      limitation the right to receive unvested Option Shares. 

     

    (b) Disability,
      Death or Retirement.
      

     

    (i) The
      Employment Term and Executive’s employment hereunder shall terminate (A) upon
      his death; (B) if Executive becomes physically or mentally incapacitated for
      a
      period of indefinite duration and is therefore unable for a period of two (2)
      consecutive months or for an aggregate of three (3) months in any twelve (12)
      consecutive month period to perform his duties, (such incapacity is hereinafter
      referred to as “Disability”);
      and
      (C) upon his Retirement (as defined below). Any question as to the existence
      of
      the Disability of Executive as to which Executive and the Company cannot agree
      shall be determined in writing by a qualified independent physician mutually
      acceptable to Executive and the Company. If Executive and the Company cannot
      agree as to a qualified independent physician, each shall appoint such a
      physician and those two physicians shall select a third who shall make such
      determination in writing. The determination of such third physician shall be
      binding upon the parties hereto. For purposes of this Agreement, “Retirement”
shall
      mean Executive’s voluntary resignation any time after attaining age 65 (or at
      any earlier date with the permission of the Board).

     

    (ii) Upon
      termination of Executive’s employment hereunder for death, Disability or
      Retirement, Executive or his estate (as the case may be) shall be entitled
      to
      receive (A) any accrued but unpaid Base Salary through the end of the month
      in
      which such termination occurs, (B) a pro rata portion of any Additional
      Compensation that the Executive would have been entitled to receive pursuant
      to
      Section 4 hereof in such year based upon the percentage of the employment
      year that shall have elapsed through the date of Executive’s termination of
      employment, payable when such Additional Compensation would have otherwise
      been
      payable had the Executive’s employment not terminated, (C) the opportunity to
      exercise vested stock options and Executive’s stock options scheduled to vest
      during the year following such termination (i) in the case of death or
      Disability, for six months following such termination or (ii) in the case of
      Retirement,
      for one year following such termination, (D) a pro rata portion of any long
      term
      incentive granted to the Executive and (E) such compensation and Employee
      Benefits, if any, as to which he may be entitled under the employee compensation
      and benefit plans and arrangements of the Company, (F) any reimbursable business
      expenses incurred; and (G) any accrued but unpaid Additional Compensation
      through the termination date. Following such termination of Executive’s
      employment due to death, Disability or Retirement, except as set forth in this
      Section 8(b), Executive shall have no further rights to any compensation or
      any
      other benefits under this Agreement, including without limitation the right
      to
      receive unvested Option Shares. 

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    (c) By
      the
      Company without Cause. 

     

    (i) The
      Employment Term and Executive’s employment hereunder may be terminated by the
      Company without Cause at any time upon thirty (30) days prior written notice
      to
      Executive. 

     

    (ii) If
      Executive’s employment is terminated by the Company without Cause (other than by
      reason of death or Disability or bankruptcy of the Company), Executive shall
      be
      entitled to receive (A) his Base Salary through the end of the then current
      Employment Term, plus any accrued Severance pursuant to clause D of this Section
      8(c)(ii), payable in accordance with the Company’s standard payroll policy, (B)
      unpaid Additional Compensation for the fiscal year prior to termination payable
      when such Additional Compensation would have been payable if Executive’s
      employment had not terminated; (D) payment equal to the Severance in accordance
      with Section 9 hereof; (E) such vested compensation and Employee Benefits,
      if any, as to which Executive may be entitled under the employee compensation
      and benefit plans and arrangements of the Company; (F) any reimbursable business
      expenses incurred through the termination date; and (G) immediate acceleration
      of all unvested stock options granted pursuant to Section 5(a)
      hereof.

     

    (d) Notice
      of Termination.
      Any
      purported termination of employment by the Company or by Executive (other than
      due to Executive’s death or in accordance with the provisions of Section 1
      hereof) shall be communicated by written Notice of Termination to the other
      party hereto in accordance with Section 12(i) hereof. For purposes of this
      Agreement, a “Notice
      of Termination”
shall
      mean a notice which shall indicate the specific termination provision in this
      Agreement relied upon and shall set forth in reasonable detail the facts and
      circumstances claimed to provide a basis for termination of employment under
      the
      provision so indicated.

     

    9.
       Severance.
      Subject
      to the provisions of Section 8(c) of this Agreement, Executive shall earn
      additional "Severance"
      compensation based on Executive's base salary according to Executive's length
      of
      service with the Company. Executive shall earn eight weeks of his base salary
      as
      of the date of termination for the first full year of service hereunder, plus
      four weeks for the second full year of service hereunder, and plus five
weeks
      for
      each succeeding year of service thereafter, up to an aggregate of seventeen
      (17)
      weeks of such base salary. All Severance payments will be paid in accordance
      with the Company’s regular payroll policy.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    10.  Confidentiality.
       Executive
      will not at any time (whether during or after his employment with the Company),
      unless required by a court or administrative agency, disclose or use for his
      own
      benefit or purposes or the benefit or purposes of any other person, firm,
      partnership, joint venture, association, corporation or other business
      organization, entity or enterprise other than the Company and any of its
      subsidiaries or affiliates, any trade secrets, information, data, or other
      confidential information relating to customers, development programs, costs,
      marketing, trading, investment, sales activities, promotion, credit and
      financial data, manufacturing processes, financing methods, plans, or the
      business and affairs of the Company generally, or of any subsidiary or affiliate
      of the Company, provided that the foregoing shall not apply to information
      which
      is not unique to the Company or which is generally known to the industry or
      the
      public other than as a result of Executive’s breach of this covenant. Executive
      further understands that any processes, formulae, methods of doing business,
      software or other programs or other developments (collectively “Developments”)
      created by him for use by the Company during the Employment Term, whether or
      not
      developed during normal business hours or at Company facilities, shall be and
      remain the exclusive property of the Company and shall be deemed “works for
      hire”, and Executive shall take all steps to ensure that title to the
      Developments shall be vested with the Company, including, without limitation,
      executing and delivering to the Company any and all assignments, applications
      and other documents that the Company may request in order to apply for and
      obtain patents, copyrights or other registrations with respect to any
      Development in the United States or elsewhere. Executive recognizes and agrees
      that activities in violation of this Section could cause irreparable injury
      to
      the Company and that such injury would be difficult or impossible to measure.
      Accordingly, the Company shall be entitled to an injunction and other equitable
      remedies for any violation without limiting the Company’s rights to pursue
      monetary or other damages or remedies.

    

    11. Noncompetition. During
      the term of Executive’s employment with the Company and for a period of two (2)
      years after he ceases to be employed by the Company, Executive shall not engage
      directly or indirectly in competition with the Company or its Affiliates (as
      such term is defined in Rule 501(b) of the Securities Act of 1933, as amended)
      in the business of motorcycle leasing or finance. Competition shall include,
      without limitation, any role as a sponsor, consultant, employee, partner or
      stockholder which aids or abets any business to compete or prepare for
      competition with the Company or its Affiliates in any business in which any
      of
      them is engaged or planning to engage. In addition, during such two-year period,
      Executive shall not solicit any then current employee of the Company to engage
      in activities competitive with the business of the Company. Executive further
      acknowledges that the services to be performed by him under this Agreement
      are
      of a special, unique extraordinary and intellectual character, that the
      Company’s business is national in scope and that its services are marketed
      throughout the United States and that the provisions of this Section
11
      are
      reasonable and necessary to protect the Company’s business. As such competitive
      activities in violation of this Section could cause irreparable injury to the
      Company and that such injury would be difficult or impossible to measure.
      Accordingly, the Company shall be entitled to an injunction and other equitable
      remedies for any violation without limiting the Company’s rights to pursue
      monetary or other damages or remedies.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    12. Miscellaneous.

     

    (e) Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York, without regard to conflicts of laws principles
      thereof.

     

    (f) Arbitration.
      Except
      as otherwise set forth herein with respect to the obtaining of injunctive
      relief, any dispute or controversy arising under or in connection with this
      Agreement shall be resolved by binding arbitration held in The City of New
      York
      and conducted in accordance with the commercial arbitration rules of the
      American Arbitration Association (“AAA”) in effect at the time of the
      arbitration before a single arbitrator appointed by the President of the AAA;
      provided that such arbitrator shall be an expert in the field of finance and
      shall not have had any previous dealings or relationships with either party.
      

     

    (c) Entire
      Agreement.
      This
      Agreement contains the entire understanding of the parties with respect to
      the
      employment of Executive by the Company. There are no restrictions, agreements,
      promises, warranties, covenants or undertakings between the parties with respect
      to the subject matter herein other than those expressly set forth herein. This
      Agreement may not be altered, modified, or amended except by written instrument
      signed by the parties hereto.

     

    (d) Waiver.
      The
      failure of a party to insist upon strict adherence to any term of this Agreement
      on any occasion shall not be considered a waiver of such party’s rights or
      deprive such party of the right thereafter to insist upon strict adherence
      to
      that term or any other term of this Agreement.

     

    (e) Severability
      .
      Except
      to the extent set forth in Section 11 hereof, if any one or more of the
      provisions of this Agreement shall be or become invalid, illegal or
      unenforceable in any respect, the validity, legality and enforceability of
      the
      remaining provisions of this Agreement shall not be affected thereby.

     

    (f)
      Assignment
      .
      This
      Agreement shall not be assignable by Executive. This Agreement may be assigned
      by the Company to a company which is a successor in interest to substantially
      all of the business operations of the Company. Such assignment shall become
      effective when the Company notifies the Executive of such assignment or at
      such
      later date as may be specified in such notice. Upon such assignment, the rights
      and obligations of the Company hereunder shall become the rights and obligations
      of such successor company.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (g) Successors;
      Binding Agreement.
      This
      Agreement shall inure to the benefit of and be binding upon personal or legal
      representatives, executors, administrators, successors, heirs, distributes,
      devises and legatees.

     

    (h) Notice.
      For the
      purpose of this Agreement, notices and all other communications provided for
      in
      the Agreement shall be in writing and shall be deemed to have been duly given
      when delivered by facsimile or United States registered mail, return receipt
      requested, postage prepaid, or by recognized overnight courier service addressed
      to the respective addresses set forth on the execution page of this Agreement
      or
      such other address as either party may have furnished to the other in writing
      in
      accordance herewith, except that notice of change of address shall be effective
      only upon receipt.

     

    If
      delivery is by facsimile:

     

    If
      to the
      Company, at 212-523-0585

     

    If
      to
      Executive, at 914-381-0577. 

     

    (i) Counterparts.
      This
      Agreement may be signed in counterparts, each of which shall be an original,
      with the same effect as if the signatures thereto and hereto were upon the
      same
      instrument.

     

    (j) Survival.
      The
      provisions of Section 8, 10, 11 and 12(b) shall survive the expiration or
      termination of this Agreement regardless of the reason or reasons
      therefor.

    

     

    IN
      WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
      the
      day and year first above written.

     

     

    
      
        	
                /s/
                  Anthony W.
                  Adler                   
                  

                Anthony
                  W. Adler

                

                SPARTA
                  COMMERCIAL SERVICES, INC.

                

                By:
                  /s/ A. L.
                  Havens                      
                  

                Name:
                  Anthony L. Havens

                Title:
                  Chief Executive Officer

              

      

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    

    EXHIBIT
      A

    

    GRANT
      OF OPTION

    

     

    
      	1.	
              Grant
                of Option

            

    

    

    
      	 	
              (a)

            	
              The
                Company hereby grants to you an option (the "Option") to purchase
                up to
                4,000,000 shares of the Company's Common Stock, par value $.001 per
                share
                (the "Common Stock"). The price per share of such Common Stock shall
                be to
                110% of the average closing price of the Company’s Common Stock for the
                five (5) trading days immediately preceding on the Commencement Date
                of
                the Employment Agreement (the “Employment Agreement.”) to which this Grant
                of Option is attached (the “Option
                Price.”).

            

    

    

    
      	 	
              (b)

            	
              Such
                options shall vest in accordance with the conditions to Section 5(a),
                5(d)
                or 8(c)(ii) of the Employment
                Agreement.

            

    

    

    
      	2.	
              Exercise
                of Option

            

    

    

    Subject
      to the following terms, you may exercise the vested portions of the Option
      during the five (5) year period commencing on the date any such portion shall
      vest; provided, however, that the Option and any rights underlying the Option,
      to the extent not previously exercised shall terminate in accordance with the
      provisions of the Employment Agreement. You may exercise any such portion of
      the
      Option in whole or in part by written notice delivered to the Company; provided,
      however, that in the event you exercise any portion of the Option for less
      than
      the entire amount of such portion, you must exercise the Option for at least
      20%
      of the aggregate number of shares of the Common Stock applicable to that portion
      of the Option. Payment of the Option Price for the shares of Common Stock
      purchased upon exercise shall be made by delivery to the Company of a certified
      or bank cashier's check payable to the Company in the amount of the Option
      Price
      multiplied by the number of shares of the Common Stock you intend to
      purchase.

    

    
      	3.	
              Delivery
                of Shares of Stock

            

    

    

    The
      Company shall, upon payment of the Option Price for the shares of Common Stock
      subject to an exercise, make prompt delivery of certificates representing such
      shares of Stock to you. Subject to the terms hereof, the Company shall, at
      all
      times during the term of the Employment Agreement, reserve and keep available,
      solely for issuance and delivery upon exercise of the Option, all shares of
      Common Stock issuable upon exercise of the Option. All shares of Common Stock
      issuable upon exercise of the Option shall, upon issuance, be duly authorized,
      validly issued, fully paid and non-assessable, with no liability
      on the part of the holder thereof. The Company shall pay all original issue
      taxes on the exercise of the Option, and all other fees and expenses necessarily
      incurred by the Company in connection therewith.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    
      	4.	
              No
                Rights in Option Stock

            

    

    

    You
      shall
      have no rights as a stockholder in respect of any shares of Common Stock subject
      to the Option unless and until you have exercised the Option in respect of
      such
      shares in complete accordance with the terms hereof.

    

    
      	5.	
              Certain
                Adjustments

            

    

    

    
      	 	
              (a)

            	
              Except
                for the issuance of the shares of Common Stock pursuant to warrants
                or
                options issued by the Company prior to the date of this Option (which
                shall not result in any adjustments
                hereunder):

            

    

    

    
      	
            	(i)	
              Stock
                Dividends, Splits and Combinations

              If
                at any time or from time to time, the holders of Common Stock become
                entitled to receive additional shares or less shares because of a
                stock
                dividend, stock split or combination of shares, the number of shares
                in
                this Option not yet exercised and the Option Price therefore shall
                be
                proportionately and correspondingly adjusted. For example, if the
                Common
                Stock shall split three-for-one, this Option shall thereafter entitle
                you
                to purchase upon its exercise three times the number of shares and
                the
                Option Price per share set forth in Section 1 hereof not yet exercised,
                shall be reduced to one-third of the Option Price previously in
                effect.

            

    

    

    
      	
            	(ii)	
              Reclassifications

              If
                at any time or from time to time, the holders of Common Stock become
                entitled to receive a different class of stock (the "Entitlement
                Event"),
                you shall be entitled to receive upon its exercise of this Option
                after
                the Entitlement Event the same number and kind of shares of stock
                as a
                holder of the same number of shares of the Common Stock for which
                this
                Option was exercisable immediately prior to the Entitlement Event
                was
                eligible to receive with respect to such Common Stock pursuant to
                the
                Entitlement Event. This provision shall include any reclassification
                in
                connection with a merger of another corporation into the
                Company.

            

    

    

    
      	
            	(iii)	
              Certain
                Distributions

              If
                at any time or from time to time, the holders of the Common Stock
                become
                entitled to receive an extraordinary distribution consisting of cash,
                debt
                securities or property including stock of a subsidiary as a spin-off
                or
                split-off, the Company shall send written notice at least 20 days
                (but no
                more than 90 days) prior to the record date of shareholders eligible
                to
                receive such distribution to you describing the amount and nature
                of the
                distribution,
                the time fixed for its payment and any conditions thereupon, and
                if you do
                not exercise this Option on or before such record date for that portion
                of
                the Option which is then currently exercisable, the Option Price
                for
                shares not yet exercised shall be reduced by an amount equal to the
                value
                of the extraordinary distribution per share of the Common Stock.
                An
                extraordinary distribution shall mean any distribution other than
                periodic
                payments of cash dividends from profits intended to be regular and
                recurring. The value of any extraordinary distribution shall be
                conclusively determined in good faith by an affirmative vote of the
                Board
                of Directors of the Company. 

            

    

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    

    
      	
            	(iv)	
              Merger
                Into or Sale of Assets to Another Corporation

              If
                at any time or from time to time, the holders of the Common Stock
                become
                entitled to receive stock, securities, property or cash (or any
                combination of them) by reason of a capital reorganization or dissolution,
                liquidation or winding-up of the Company or a merger with, a consolidation
                of the Company into, or a sale of all or substantially all of the
                assets
                of the Company to, another corporation (the "Reorganization Event"),
                you
                shall be entitled to receive upon exercise of the Option after the
                Reorganization Event the same stock, securities, property or cash
                (or
                combination of them) as a holder of the same number of shares of
                the
                Common Stock for which this option was exercisable immediately prior
                to
                the Reorganization Event was eligible to receive with respect to
                such
                Common Stock pursuant to the Reorganization
                Event.

            

    

    

    
      	6.	
              Nonassignability

            

    

    

    Neither
      the Option nor any interest therein or in the Common Stock underlying the Option
      shall be encumbered, disposed of, assigned or transferred in whole or in part
      by
      you in any way whatsoever, except that shares of Common Stock received by you
      upon exercise of the Option shall remain your property.  However,
      options already vested but not exercised upon your death or disability or
      termination of your status as an Employee of the Company without cause may
      be
      exercised during the periods set forth in Section 8 of the Employment
      Agreement., providing that this is still within the 5 year exercisable period
      of
      the option grant.

    

    
      	7.	
              Restricted
                Securities

            

    

    

    
      	 	
              (a)

            	
              You
                represent and warrant to the Company that all shares of Common Stock
                to be
                acquired by you upon any exercise of the Option are purchased for
                your own
                account for investment, and not with a view to resale or distribution.
                You
                understand that the Option and the underlying shares of Common Stock
                are
                subject to certain restrictions against transfer in compliance with
                federal and state securities laws. Each certificate representing
                shares of
                Common Stock issued upon exercise of the Option, unless at the time
                of
                exercise such shares are registered under the Securities Act of 1933
                as
                amended ("Securities Act"), shall bear the following or a similar
                restrictive legend thereon:

            

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    "THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND
      NOT
      WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO
      SUCH
      SALE OR DISPOSITION MAY BE EFFECTED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY
      IN
      FORM AND SUBSTANCE TO THE CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED
      UNDER THE SECURITIES ACT OF 1933 AS AMENDED AND THAT THE SALE OR DISPOSITION
      MAY
      BE MADE IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS."

    

    
      	
            	(b)	
              You
                understand that the Option granted hereby is a non-qualified option
                and
                that you are solely responsible for any income or other taxes that
                may
                result
                from the exercise of the Option.

            

    

     

    
 

    
      
         

      

      
        14Unassociated Document

    [EXECUTION]

     

    SIXTH
      AMENDMENT TO LOAN AND SECURITY AGREEMENT

     

    THIS
      SIXTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (the "Sixth Amendment"),
      effective as of the 31st
      day of
      March, 2006, by and among Streicher Mobile Fueling, Inc., a Florida corporation
      (hereinafter referred to as "Fueling"), SMF Services, Inc., a Delaware
      corporation (hereinafter referred to as "Services"), H & W Petroleum
      Company, Inc., a Texas corporation (hereinafter referred to as "H & W" and,
      collectively with Fueling and Services, as "Borrower") and Wachovia Bank,
      National Association, successor by merger to Congress Financial Corporation
      (Florida) (hereinafter referred to as "Lender").

     

    
      RECITALS

       

    A. On
      September 26, 2002, Fueling and Lender entered into a Loan and Security
      Agreement (the "Agreement"), establishing a revolving line of credit (the
      "Revolving Loans") by Lender in favor of Fueling.

     

    B. Fueling
      and Lender executed a Consent and First Amendment to Loan and Security Agreement
      dated as of March 31, 2003 (the "First Amendment"), consenting to certain
      subordinated debt of Fueling and modifying certain defined terms in the
      Agreement.

     

    C. Fueling
      and Lender executed a Second Amendment to Loan and Security Agreement dated
      as
      of August 29, 2003 (the “Second Amendment”), (1) permitting Fueling to incur
      certain additional secured Indebtedness, and (2) releasing Lender's security
      interest in the patents (including the related trade names utilized in such
      patents) constituting a portion of the Collateral, subject to the terms and
      conditions stated therein.

     

    D. Fueling
      and Lender executed a Third Amendment to Loan and Security Agreement dated
      as of
      August 30, 2003 (the "Third Amendment"), modifying certain terms of the
      Agreement in order to reflect that the amount of the additional secured
      Indebtedness contemplated by the Second Amendment exceeded the actual amount
      thereof.

     

    E. Fueling,
      Services and Lender executed a Fourth Amendment to Loan and Security Agreement
      dated as of February 18, 2005 (the "Fourth Amendment"), adding Services as
      an
      additional borrower under the Revolving Loans, extending the term of the
      Agreement, and modifying the applicable Interest Rate, the unused line fee
      and
      certain covenants of the Agreement.

     

    F. Fueling,
      Services, H & W and Lender executed a Fifth Amendment to Loan and Security
      Agreement dated as of October 1, 2005 (the "Fifth Amendment"), adding H & W
      as an additional borrower under the Revolving Loans, extending the term of
      the
      Agreement, increasing the Maximum Credit amount for the Revolving Loans, adding
      certain inventory to the Borrowing Base, decreasing the applicable Interest
      Rate, and modifying certain covenants and other terms of the
      Agreement.

     

    G. Borrower
      and Streicher Realty, Inc., a Florida corporation, have requested that,
      effective March 31, 2006, Lender (1) add (a) an Interest Rate option based
      on
      the London interbank offered rate, and (b) certain leased Vehicles and
      Equipment to the Excluded Assets from the Collateral, and (2) amend the Capital
      Expenditures covenant of the Agreement, and Lender is agreeable to same, subject
      to the terms and conditions hereinafter set forth.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    NOW
      THEREFORE, in consideration of the mutual covenants of the parties hereto,
      and
      for other good and valuable consideration, it is agreed as follows:

     

    1. The
      foregoing statements are true and correct and are incorporated herein as if
      set
      forth in full.

     

    2. Unless
      otherwise defined herein, all terms used herein shall have the definitions
      specified in the Agreement, as modified by the First Amendment, the Second
      Amendment, the Third Amendment, the Fourth Amendment and the Fifth Amendment;
      all references hereinafter made to the Agreement to include the modifications
      thereto effectuated pursuant to the First Amendment, the Second Amendment,
      the
      Third Amendment, the Fourth Amendment and the Fifth Amendment.

     

    3. Borrower
      confirms and acknowledges that the balance due Lender under the Revolving Loans
      as of the close of business on March 31, 2006 was the principal amount of
      $13,346,942.75 plus accrued interest since the date last paid, all free and
      clear of any defense, set-off or counterclaim.

     

    4. The
      Agreement is hereby modified as follows (all references to Sections and
      Subsections being the applicable Sections and Subsections of the
      Agreement):

     

    (a) Sections
      1.7, 1.29, 1.37, 1.49 and 1.69 are amended and restated in their entirety to
      read as follows:

     

    
      	 	
              1.7

            	
              "Business
                Day" shall mean any day other than a Saturday, Sunday, or other day
                on
                which commercial banks are authorized or required to close under
                the laws
                of the State of Florida or the State of North Carolina, and a day
                on which
                Lender is open for the transaction of business, except that if a
                determination of a Business Day shall relate to any Eurodollar Rate
                Loans,
                the term Business Day shall also exclude any day on which banks are
                closed
                for dealings in dollar deposits in the London interbank market or
                other
                applicable Eurodollar Rate market.

            

    

     

    
      	 	
              1.29

            	
              "Financing
                Agreements" shall mean, collectively, this Agreement and all notes,
                guarantees, security agreements and other agreements, documents and
                instruments now or at any time hereafter executed and/or delivered
                by
                Borrower or any Obligor in connection with this Agreement, except
                Swap
                Agreements.

            

      	 	 	 

      	 	1.37 	
              “Interest Rate” shall mean, as to Prime
                Rate Loans, a rate equal to three-quarters (.75%) percent per annum
                in
                excess of the Prime Rate and, as to Eurodollar Rate Loans, a rate
                of three
                and one-half (3.5%) percent per annum in excess of the Adjusted Eurodollar
                Rate (based on the London Interbank Offered Rate applicable for the
                Interest Period selected by Borrower as in effect two (2) Business
                Days
                prior to the commencement of the Interest  Period,
                whether such rate is higher or lower than any rate previously quoted
                to
                Borrower); provided,
                that,
                notwithstanding anything to the contrary contained herein, the Interest
                Rate shall mean the rate of three and three-quarters (3.75%) percent
                per
                annum in excess of the Prime Rate as to Prime Rate Loans and the
                rate of
                six and one-half (6.5%) percent per annum in excess of the Adjusted
                Eurodollar Rate as to Eurodollar Rate Loans, at Lender's option,
                without
                notice, (a) either (i) for the period on and after the date of
                termination or non-renewal hereof until such time as all Obligations
                are
                indefeasibly paid and satisfied in full in immediately available
                funds, or
                (ii) for the period from and after the date of the occurrence of any
                Event of Default, and for so long as such Event of Default is continuing
                as determined by Lender and (b) on the Revolving Loans at any time
                outstanding in excess of the Borrowing Base or the Revolving Loan
                Limit
                (whether or not such excess(es) arise or are made with or without
                Lender's
                knowledge or consent and whether made before or after an Event of
                Default).

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	 	
              1.49

            	
              "Obligations"
                means all obligations now or hereafter owed to Lender or any Affiliate
                of
                Lender by Borrower, whether related or unrelated to the Loans, this
                Agreement or the Financing Agreements, including, without limitation,
                amounts owed or to be owed under the terms of the Financing Agreements,
                or
                arising out of the transactions described therein, including, without
                limitation, the Loans, any Indebtedness arising out of or relating
                to any
                deposit accounts of Borrower at Lender or any Affiliate of Lender
                or any
                cash management services or other products or services, including
                merchant
                card and ACH transfer services, letter of credit obligations for
                outstanding Letter of Credit Accommodations, obligations for banker's
                acceptances issued for the account of Borrower or its Subsidiaries,
                amounts paid by Lender under Letter of Credit Accommodations or drafts
                accepted by Lender for the account of Borrower or its Subsidiaries,
                together with all interest accruing thereon, including any interest
                on
                pre-petition Indebtedness accruing after bankruptcy, all existing
                and
                future obligations under any Swap Agreements between Lender or any
                Affiliate of Lender and Borrower whenever executed (including obligations
                under Swap Agreements entered into prior to any transfer or sale
                of
                Lender's interests hereunder if Lender ceases to be a party hereto)
                , all
                fees, all costs of collection, attorneys' fees and expenses of or
                advances
                by Lender which Lender pays or incurs in discharge of obligations
                of
                Borrower or to inspect, repossess, protect, preserve, store or dispose
                of
                any Collateral, whether such amounts are now due or hereafter become
                due,
                direct or indirect and whether such amounts due are from time to
                time
                reduced or entirely extinguished and thereafter reincurred.
                

            

    

     

    
      	 	
              1.69

            	
              “Excluded
                Assets” shall mean (i) the Vehicles of Second Borrower acquired from Shank
                C&E Investments, L.L.C. (“Shank”) on February 18, 2005 and
                securing the January 2005 Indebtedness (hereinafter defined), including
                future additions, parts, accessories, attachments, substitutions,
                repairs,
                related intangibles and improvements and replacements to or of any
                such
                Vehicle, (ii) the Equipment
                of Second Borrower acquired from Shank on February 18, 2005 and securing
                the January 2005 Indebtedness, including future additions, parts,
                accessories, attachments, substitutions, repairs, related intangibles
                and
                improvements and replacements to or of any such Equipment, (iii)
                the
                intangible assets of Second Borrower acquired from Shank on February
                18,
                2005, securing the January 2005 Indebtedness and listed on Schedule
                A
                hereto, (iv) the Vehicles owned or leased by New Borrower on October
                1,
                2005 and securing the September 2005 Indebtedness (hereinafter defined),
                including future additions, parts, accessories, attachments,
                substitutions, repairs, related intangibles and improvements and
                replacements to or of any such Vehicle, and (v) the Equipment owned
                or
                leased by New Borrower on October 1, 2005 and securing the September
                2005
                Indebtedness, including future additions, parts, accessories, attachments,
                substitutions, repairs, related intangibles and improvements and
                replacements to or of any such
                Equipment.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (b) The
      following defined terms and definitions are added to Section 1:

     

    
      	 	
              1.74

            	
              “Adjusted
                Eurodollar Rate” shall mean, with respect to each Interest Period for any
                Eurodollar Rate Loan comprising part of the same borrowing (including
                conversions, extensions and renewals), the rate per annum determined
                by
                dividing (a) the London Interbank Offered Rate for such Interest
                Period by (b) a percentage equal to: (i) one (1) minus
                (ii) the Reserve Percentage. For purposes hereof, “Reserve
                Percentage” shall mean for any day, that percentage (expressed as a
                decimal) which is in effect from time to time under Regulation D
                of the
                Board of Governors of the Federal Reserve System (or any successor),
                as
                such regulation may be amended from time to time or any successor
                regulation, as the maximum reserve requirement (including, without
                limitation, any basic, supplemental, emergency, special, or marginal
                reserves) applicable with respect to Eurocurrency liabilities as
                that term
                is defined in Regulation D (or against any other category of liabilities
                that includes deposits by reference to which the interest rate of
                Eurodollar Loans is determined), whether or not Lender has any
                Eurocurrency liabilities subject to such reserve requirement at that
                time.
                Eurodollar Loans shall be deemed to constitute Eurocurrency liabilities
                and as such shall be deemed subject to reserve requirements without
                benefits of credits for proration, exceptions or offsets that may
                be
                available from time to time to Lender. The Adjusted Eurodollar Rate
                shall
                be adjusted automatically on and as of the effective date of any
                change in
                the Reserve Percentage.

            

    

     

    
      	 	
              1.75

            	
              “Eurodollar
                Rate Loans” shall mean any Loans or portion thereof on which interest is
                payable based on the Adjusted Eurodollar Rate in accordance with
                the terms
                hereof.

            

    

     

    
      	 	
              1.77

            	
              “London
                Interbank Offered Rate” shall mean, with respect to any Eurodollar Loan
                for the Interest Period applicable thereto, the rate of interest
                per annum
                (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing
                on
                Telerate Page 3750 (or any successor page) as the London interbank
                offered
                rate for deposits in U.S. Dollars at approximately 11:00 A.M. (London
                time) two (2) Business Days prior to the first day of such Interest
                Period
                for a term comparable to such Interest Period; provided, that, if
                more
                than one rate is specified on Telerate Page 3750, the applicable
                rate
                shall be the arithmetic mean of all such rates. If, for any reason,
                such
                rate is not available, the term “London Interbank Offered Rate” shall
                mean, with respect to any Eurodollar Loan for the Interest Period
                applicable thereto, the rate of interest per annum (rounded upwards,
                if
                necessary, to the nearest 1/100 of 1%) appearing on Reuters Screen
                LIBO
                Page as the London interbank offered rate for deposits in Dollars
                at
                approximately 11:00 A.M. (London time) two (2) Business Days prior
                to the
                first day of such Interest Period for a term comparable to such Interest
                Period; provided, however, if more than one rate is specified on
                Reuters
                Screen LIBO Page, the applicable rate shall be the arithmetic mean
                of all
                such rates.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	 	
              1.78

            	
              “Prime
                Rate Loans” shall mean any Loans or portion thereof on which interest is
                payable based on the Prime Rate in accordance with the terms
                thereof.

            

    

     

    
      	 	
              1.79

            	
              "Swap
                Agreement" has the meaning for swap agreement as defined in 11 U.S.C.
§
                101, as in effect from time to time, or any successor statute, and
                includes, without limitation, any rate swap agreement, forward rate
                agreement, commodity swap, commodity option, interest rate option,
                forward
                foreign exchange agreement, spot foreign exchange agreement, rate
                cap
                agreement, rate floor agreement, rate collar agreement, currency
                swap
                agreement, cross-currency rate swap agreement, currency option and
                any
                other similar agreement.

            

    

     

    (c) Section
      3.1 is amended and restated in its entirety to read as follows:

     

    3.1 Interest

     

    (a) Borrower
      shall pay to Lender interest on the outstanding principal amount of the Loans
      at
      the Interest Rate. All interest accruing hereunder on and after the date of
      any
      Event of Default or termination hereof shall be payable on demand.

     

    (b) Borrower
      may from time to time request Eurodollar Rate Loans or may request that Prime
      Rate Loans be converted to Eurodollar Rate Loans or that any existing Eurodollar
      Rate Loans continue for an additional Interest Period. Such request from
      Borrower shall specify the amount of the Eurodollar Rate Loans or the amount
      of
      the Prime Rate Loans to be converted to Eurodollar Rate Loans or the amount
      of
      the Eurodollar Rate Loans to be continued (subject to the limits set forth
      below) and the Interest Period to be applicable to such Eurodollar Rate Loans.
      Subject to the terms and conditions contained herein, three (3) Business Days
      after receipt by Lender of such a request from Borrower, such Eurodollar Rate
      Loans shall be made or Prime Rate Loans shall be converted to Eurodollar Rate
      Loans or such Eurodollar Rate Loans shall continue, as the case may be,
      provided, that, (1)
      no
      Default or Event of Default shall exist or have occurred and be continuing,
      (2)
      no party
      hereto shall have sent any notice of termination of this Agreement, (3)
      Borrower
      shall have complied with such customary procedures as are established by Lender
      and specified by Lender to Borrower from time to time for requests by Borrower
      for Eurodollar Rate Loans, (4)
      no more
      than four (4) Interest Periods may be in effect at any one time, (5)
      the
      aggregate amount of the Eurodollar Rate Loans must be in an amount not less
      than
      $5,000,000 or an integral multiple of $1,000,000 in excess thereof, (6)
      the
      maximum amount of the Eurodollar Rate Loans at any time requested by Borrower
      shall not exceed the amount equal to eighty (80%) percent of the lowest
      principal amount of the Revolving Loans which it is anticipated will be
      outstanding during the applicable Interest Period, as determined by Lender
      (but
      with no obligation of Lender to make such Loans), and (7)
      Lender
      shall have determined that the Interest Period or Adjusted Eurodollar Rate
      is
      available to Lender through the Reference Bank and can be readily determined
      as
      of the date of the request for such Eurodollar Rate Loan by Borrower. Any
      request by Borrower for Eurodollar Rate Loans or to convert Prime Rate Loans
      to
      Eurodollar Rate Loans or to continue any existing Eurodollar Rate Loans shall
      be
      irrevocable. Notwithstanding anything to the contrary contained herein, Lender
      and Reference Bank shall not be required to purchase United States Dollar
      deposits in the London interbank market or other applicable Eurodollar Rate
      market to fund any Eurodollar Rate Loans, but the provisions hereof shall be
      deemed to apply as if Lender and Reference Bank had purchased such deposits
      to
      fund the Eurodollar Rate Loans.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (c) Any
      Eurodollar Rate Loans shall automatically convert to Prime Rate Loans upon
      the
      last day of the applicable Interest Period, unless Lender has received and
      approved a request to continue such Eurodollar Rate Loan at least three (3)
      Business Days prior to such last day in accordance with the terms hereof. Any
      Eurodollar Rate Loans shall, at Lender's option, upon notice by Lender to
      Borrower, be subsequently converted to Prime Rate Loans in the event that this
      Agreement shall terminate or not be renewed. Borrower shall pay to Lender,
      upon
      demand by Lender (or Lender may, at its option, charge any loan account of
      Borrower) any amounts required to compensate Lender, the Reference Bank or
      any
      participant with Lender for any loss (including loss of anticipated profits),
      cost or expense incurred by such person, as a result of the conversion of
      Eurodollar Rate Loans to Prime Rate Loans pursuant to any of the
      foregoing.

     

    (d) Interest
      shall be payable by Borrower to Lender monthly in arrears not later than the
      first day of each calendar month and shall be calculated on the basis of a
      three
      hundred sixty (360) day year and actual days elapsed. The interest rate on
      non-contingent Obligations (other than Eurodollar Rate Loans) shall increase
      or
      decrease by an amount equal to each increase or decrease in the Prime Rate
      effective on the first day of the month after any change in such Prime Rate
      is
      announced based on the Prime Rate in effect on the last day of the month in
      which any such change occurs. In no event shall charges constituting interest
      payable by Borrower to Lender exceed the maximum amount or the rate permitted
      under any applicable law or regulation, and if any such part or provision of
      this Agreement is in contravention of any such law or regulation, such part
      or
      provision shall be deemed amended to conform thereto.

     

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (d) Section
      3.5, reading as follows, is added immediately after Section 3.4:

     

    3.5 Changes
      in Laws and Increased Costs of Loans.

     

    (a) If
      after
      the date hereof, either (i) any change in, or in the interpretation of, any
      law
      or regulation is introduced, including, without limitation, with respect to
      reserve requirements, applicable to Lender or any banking or financial
      institution from whom Lender borrows funds or obtains credit (a “Funding Bank”),
      or (ii) a Funding Bank or Lender complies with any future guideline or request
      from any central bank or other Governmental Authority or (iii) a Funding Bank
      or
      Lender determines that the adoption of any applicable law, rule or regulation
      regarding capital adequacy, or any change therein, or any change in the
      interpretation or administration thereof by any Governmental Authority, central
      bank or comparable agency charged with the interpretation or administration
      thereof has or would have the effect described below, or a Funding Bank or
      Lender complies with any request or directive regarding capital adequacy
      (whether or not having the force of law) of any such authority, central bank
      or
      comparable agency, and in the case of any event set forth in this clause (iii),
      such adoption, change or compliance has or would have the direct or indirect
      effect of reducing the rate of return on Lender’s capital as a consequence of
      its obligations hereunder to a level below that which Lender could have achieved
      but for such adoption, change or compliance (taking into consideration the
      Funding Bank’s or Lender’s policies with respect to capital adequacy) by an
      amount deemed by Lender to be material, and the result of any of the foregoing
      events described in clauses (i), (ii) or (iii) is or results in an increase
      in
      the cost to Lender of funding or maintaining the Loans or the Letter of Credit
      Accommodations, then Borrower shall from time to time upon demand by Lender
      pay
      to Lender additional amounts sufficient to indemnify Lender against such
      increased cost on an after-tax basis (after taking into account applicable
      deductions and credits in respect of the amount indemnified). A certificate
      as
      to the amount of such increased cost shall be submitted to Borrower by Lender
      and shall be conclusive, absent manifest error.

     

    (b) If
      prior
      to the first day of any Interest Period, (i) Lender shall have determined in
      good faith (which determination shall be conclusive and binding upon Borrower)
      that, by reason of circumstances affecting the relevant market, adequate and
      reasonable means do not exist for ascertaining the Adjusted Eurodollar Rate
      for
      such Interest Period, (ii) Lender determines that the Adjusted Eurodollar Rate
      determined or to be determined for such Interest Period will not adequately
      and
      fairly reflect the cost to Lender of making or maintaining Eurodollar Rate
      Loans
      during such Interest Period, or (iii) Dollar deposits in the principal amounts
      of the Eurodollar Rate Loans to which such Interest Period is to be applicable
      are not generally available in the London interbank market, Lender shall give
      telecopy or telephonic notice thereof to Borrower as soon as practicable
      thereafter, and will also give prompt written notice to Borrower when such
      conditions no longer exist. If such notice is given (A) any Eurodollar Rate
      Loans requested to be made on the first day of such Interest Period shall be
      made as Prime Rate Loans, (B) any Loans that were to have been converted on
      the
      first day of such Interest Period to or continued as Eurodollar Rate Loans
      shall
      be converted to or continued as Prime Rate Loans and (C) each outstanding
      Eurodollar Rate Loan shall be converted, on the last day of the then-current
      Interest Period thereof, to Prime Rate Loans. Until such notice has been
      withdrawn by Lender, no further Eurodollar Rate Loans shall be made or continued
      as such, nor shall Borrower have the right to convert Prime Rate Loans to
      Eurodollar Rate Loans.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (c) Notwithstanding
      any other provision herein, if the adoption of or any change in any law, treaty,
      rule or regulation or final, non-appealable determination of an arbitrator
      or a
      court or other Governmental Authority or in the interpretation or application
      thereof occurring after the date hereof shall make it unlawful for Lender to
      make or maintain Eurodollar Rate Loans as contemplated by this Agreement, (i)
      Lender shall promptly give written notice of such circumstances to Borrower
      (which notice shall be withdrawn whenever such circumstances no longer exist),
      (ii) the commitment of Lender hereunder to make Eurodollar Rate Loans, continue
      Eurodollar Rate Loans as such and convert Prime Rate Loans to Eurodollar Rate
      Loans shall forthwith be canceled and, until such time as it shall no longer
      be
      unlawful for Lender to make or maintain Eurodollar Rate Loans, Lender shall
      then
      have a commitment only to make a Prime Rate Loan when a Eurodollar Rate Loan
      is
      requested and (iii) Loans then outstanding as Eurodollar Rate Loans, if
      any, shall be converted automatically to Prime Rate Loans on the respective
      last
      days of the then current Interest Periods with respect to such Loans or within
      such earlier period as required by law. If any such conversion of a Eurodollar
      Rate Loan occurs on a day which is not the last day of the then current Interest
      Period with respect thereto, Borrower shall pay to such Lender such amounts,
      if
      any, as may be required pursuant to Section 3.5(d) below.

     

    (d) Borrower
      shall indemnify Lender and to hold Lender harmless from any loss or expense
      which Lender may sustain or incur as a consequence of (i) default by Borrower
      in
      making a borrowing of, conversion into or extension of Eurodollar Rate Loans
      after Borrower has given a notice requesting the same in accordance with the
      provisions of this Agreement, (ii) default by Borrower in making any
      prepayment of a Eurodollar Rate Loan after Borrower has given a notice thereof
      in accordance with the provisions of this Agreement, and (iii) the making of
      a
      prepayment of Eurodollar Rate Loans on a day which is not the last day of an
      Interest Period with respect thereto. With respect to Eurodollar Rate Loans,
      such indemnification may include an amount equal to the excess, if any, of
      (A)
      the amount of interest which would have accrued on the amount so prepaid, or
      not
      so borrowed, converted or extended, for the period from the date of such
      prepayment or of such failure to borrow, convert or extend to the last day
      of
      the applicable Interest Period (or, in the case of a failure to borrow, convert
      or extend, the Interest Period that would have commenced on the date of such
      failure) in each case at the applicable rate of interest for such Eurodollar
      Rate Loans provided for herein over (B) the amount of interest (as reasonably
      determined by such Lender) which would have accrued to Lender on such amount
      by
      placing such amount on deposit for a comparable period with leading banks in
      the
      interbank Eurodollar market. This covenant shall survive the termination or
      non-renewal of this Agreement and the payment of the Obligations.

     

    (e) The
      third
      sentence of Subsection 6.4(a) is amended and restated in its entirety to read
      as
      follows:

     

    Notwithstanding
      anything to the contrary contained in this Agreement, (i) unless so directed
      by
      Borrower, or unless a Default or an Event of Default shall exist or have
      occurred and be continuing, Lender shall not apply any payments which it
      receives to any Eurodollar Rate Loans, except (A) on the expiration date of
      the
      Interest Period applicable to any such Eurodollar Rate Loans, or (B) in the
      event that there are no outstanding Prime Rate Loans and (ii) to the extent
      Borrower uses any proceeds of the Loans or Letter of Credit Accommodations
      to
      acquire rights in or the use of any Collateral or to repay any Indebtedness
      used
      to acquire rights in or the use of any Collateral, payments in respect of the
      Obligations shall be deemed applied first to the Obligations arising from Loans
      and Letter of Credit Accommodations that were not used for such purposes and
      second to the Obligations arising from Loans and Letters of Credit
      Accommodations the proceeds of which were used to acquire rights in or the
      use
      of any Collateral in the chronological order in which Borrower acquired such
      rights in or the use of such Collateral. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (f) Section
      9.17 is amended and restated in its entirety to read as follows:

     

    9.17 Capital
      Expenditures.
      Borrower shall not make Capital Expenditures which in the aggregate exceed
      $3,200,000 during fiscal year 2006, $1,500,000 during fiscal year 2007 or
      $750,000 during any fiscal year thereafter.

     

    5. Each
      and
      every reference to the Agreement in the other Financing Agreements shall be
      deemed to refer to the Agreement, as modified by this Sixth
      Amendment.

     

    6. Borrower
      represents and warrants to Lender that, except as has been otherwise disclosed
      to Lender in writing, the representations and warranties contained in the
      Agreement and all related loan documentation are true and correct on and as
      of
      the date hereof (with the same force and effect as if made on and as of the
      date
      hereof, other than representations and warranties made as of a specific date
      which shall be deemed made as of such date) and with respect to this Sixth
      Amendment and the related documentation referenced herein, and that no Default
      or Event of Default shall have occurred and be continuing. Specifically, (a)
      Fueling represents and warrants that its Articles of Incorporation and Bylaws,
      certified on September 26, 2002 were not amended on or subsequent to their
      aforesaid certification date, other than the July 23, 2003 amendment to Articles
      of Incorporation increasing the number of authorized shares of common stock
      from
      20,000,000 to 50,000,000 shares, (b) Services represents and warrants that
      its
      Certificate of Incorporation and Bylaws, certified on February 18, 2005 were
      not
      amended on or subsequent to their aforesaid certification date, and (c) H &
W represents and warrants that its Articles of Incorporation and Bylaws,
      certified on October 1, 2005 were not amended on nor subsequent to their
      aforesaid certification date.

     

    7. Borrower
      acknowledges and confirms that all Collateral furnished in connection with
      the
      Agreement, except patents, continue to secure the Obligations and indebtedness
      thereunder, as hereby modified.

     

    8. Borrower
      and Obligor each hereby release and forever discharge Lender and each and every
      one of its directors, officers, employees, representatives, legal counsel,
      agents, parents, subsidiaries and affiliates, and persons employed or engaged
      by
      them, whether past or present (hereinafter collectively referred to as the
      "Lender Releasees"), of and from all actions, agreements, damages, judgments,
      claims, counterclaims, and demands whatsoever, liquidated or unliquidated,
      contingent or fixed, determined or undetermined, at law or in equity, which
      Borrower or Obligor, had, now has, or may have against the Lender Releasees,
      or
      any of them, for, upon or by reason of any matter, cause or thing whatsoever
      to
      the date of this Sixth Amendment, whether arising out of, related to or
      pertaining to the Obligations, the Financing Agreements, or otherwise,
      including, without limitation, the negotiation, closing, administration, and
      funding of the Obligations or the Financing Agreements. Borrower and Obligor
      each acknowledges that this provision is a material inducement for Lender
      entering into this Sixth Amendment and this provision shall survive payment
      in
      full of all Obligations and termination of all Financing
      Agreements.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    9. Borrower
      shall pay all out-of-pocket expenses incurred by Lender in connection with
      the
      preparation for and closing of the transaction contemplated under this Sixth
      Amendment, including, without limitation, the fees and expenses of special
      counsel for Lender. In addition, Borrower shall pay any and all taxes (together
      with interest and penalties, if any, applicable thereto) and fees, including,
      without limitation, documentary stamp taxes, now or hereafter required in
      connection with the execution and delivery of the Agreement, as hereby amended,
      and all related documents, instruments and agreements.

     

    10. Except
      as
      expressly modified herein, all terms and provisions of the Agreement, and all
      other documents, instruments and agreements executed and/or delivered in
      connection with the Agreement, shall remain unchanged and in full force and
      effect; provided,
      however,
      in the
      event of any inconsistency, incongruity or conflict between the terms of the
      Agreement and the terms of this Sixth Amendment, the terms of this Sixth
      Amendment shall govern and control. No consent of Lender hereunder shall operate
      as a waiver or continuing consent with respect to any instance or event other
      than those specified herein. Neither this Sixth Amendment nor
      any
      earlier waiver or amendment of the Agreement will constitute a novation or
      have
      the effect of discharging any liability or obligation evidenced by the Agreement
      or any related document. This Sixth Amendment shall not be deemed to prejudice
      any rights or remedies which Lender may now have or may have in the future
      under
      or in connection with the Agreement or the Financing Agreements or any of the
      instruments or agreements referred to therein, as the same may be amended,
      restated or otherwise modified. This Sixth Amendment is part of the Agreement
      and constitutes a Financing Agreement thereunder.

     

    11. All
      covenants, agreements, representations and warranties contained herein shall
      be
      binding upon and inure to the benefit of the parties hereto, their respective
      successors and assigns, except that Borrower shall not have the right to assign
      its rights hereunder or any interest herein without the prior written consent
      of
      Lender.

     

    12. This
      Sixth Amendment may be executed in any number of counterparts and by different
      parties hereto in separate counterparts, each of which, when so executed, shall
      be deemed to be an original and shall be binding upon all parties, their
      successors and assigns, and all of which taken together shall constitute one
      and
      the same agreement. 

     

    13. This
      Sixth Amendment shall be governed by, and construed and interpreted in
      accordance with, the laws of the State of Florida, without giving effect to
      its
      conflict of law principles.

     

    14. LENDER,
      BORROWER AND OBLIGOR EACH HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE
      ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
      HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS SIXTH AMENDMENT
      OR
      THE AGREEMENT AND ANY AGREEMENT, DOCUMENT OR INSTRUMENT EXECUTED IN CONJUNCTION
      HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
      ORAL
      OR WRITTEN) OR ACTIONS OF ANY PARTY HERETO. THIS PROVISION IS A MATERIAL
      INDUCEMENT FOR LENDER ENTERING INTO THIS SIXTH AMENDMENT.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Sixth Amendment the
      26th
      day of September 2006, effective as of the 31st
      day of
      March, 2006.

     

     

    
      	 	 	 
	 	BORROWER:
	 	 
	 	STREICHER
              MOBILE
              FUELING, INC., a Florida corporation
	 
 	 
 	 
 
	 	By:  	/s/ Richard
              E. Gathright
	 	
              
Name:
              Richard E. Gathright
	 	Title:
              President and Chief Executive Officer

    

     

    
      	 	 	 
	 	SMF
              SERVICES,
              INC., a Delaware corporation
	 
 	 
 	 
 
	 	By:  	/s/ Richard
              E. Gathright
	 	
              
Name:
              Richard E. Gathright
	 	Title:
              President and Chief Executive Officer

    

     

    
      	 	 	 
	 	H
&
W
              PETROLEUM COMPANY, INC., a Texas corporation
	 
 	 
 	 
 
	 	By:  	/s/ Richard
              E. Gathright
	 	
              
Name:
              Richard E. Gathright
	 	Title:
              Chief Executive Officer

    

     

    
      	 	 	 
	 	LENDER:
	 	 
	 	
              WACHOVIA
                BANK, NATIONAL ASSOCIATION, SUCCESSOR BY MERGER TO CONGRESS FINANCIAL
                CORPORATION (FLORIDA)

            
	 
 	 
 	 
 
	 	By:  	/s/ Pat
              Cloninger
	 	
              
Name:
              Pat Cloninger
	 	Title:
              Vice President

    

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
      [EXECUTION]

       

    

    JOINDER

    

    The
      undersigned: (1) acknowledges and confirms that Lender's loans, advances
      and credit to Borrower have been, are and will continue to be of direct economic
      benefit to the undersigned, (2) acknowledges that it has previously waived
      any right to consent to the foregoing or any future amendment to the Agreement
      but, nevertheless, consents to all terms and provisions of the Sixth Amendment
      which are applicable to it, and agrees to be bound by and comply with such
      terms
      and provisions, and (3) acknowledges and confirms that its guarantee in
      favor of Lender executed in connection with the Agreement is valid and binding
      and remains in full force and effect in accordance with its terms (without
      defense, setoff or counterclaim against enforcement thereof), which include,
      without limitation, its guarantee in connection with the Agreement, as modified
      by the Sixth Amendment.

     

    
      	 	 	 
	 	GUARANTOR:
	 	 
	 	STREICHER REALTY, INC., a Florida
              corporation
	 
 	 
 	 
 
	 	By:  	/s/ Richard
              E. Gathright
	 	
              
Name:
              Richard E. Gathright
	 	Title:
              President and Chief Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]