Document:

Unassociated Document

    EIGHTEENTH
AMENDMENT

    TO LOAN AND SECURITY
AGREEMENT

     

    THIS
EIGHTEENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this "Amendment") is made
and entered into on June 29, 2009, by and among SMF Energy Corporation, a
Delaware corporation and successor-by-merger to Streicher Mobile Fueling, Inc.,
a Florida corporation ("SMF"); SMF Services, Inc., a Delaware
corporation ("SSI"); H & W
Petroleum Company, Inc., a Texas corporation ("H & W" and, together
with SMF and SSI, collectively, "Borrower"); and Wachovia Bank, National
Association, a national banking association and successor-by-merger to
Congress Financial Corporation (Florida) ("Lender").

     

    RECITALS

     

    A.           Borrower
and Lender are parties to that certain Loan and Security Agreement dated
September 26, 2002 (as at any time amended, restated, supplemented or otherwise
modified, the "Loan Agreement").  The Obligations under (and as defined in)
the Loan Agreement are guaranteed by Streicher Realty, Inc., a
Florida corporation ("Guarantor").

     

    B.           The
parties hereto desire to amend the Loan Agreement upon the terms and subject to
the conditions hereinafter set forth.

     

    NOW,
THEREFORE, for and in consideration of Ten Dollars ($10.00) in hand paid and
other good and valuable consideration, the receipt and sufficiency of which are
hereby severally acknowledged, the parties hereto, intending to be legally
bound, hereby agree as follows:

     

    1.           Each
capitalized term used in this Amendment, unless otherwise defined herein, shall
have the meaning ascribed to such term in the Loan Agreement.

     

    2.           Subject
to the satisfaction of each of the conditions precedent set forth in this
Amendment, the Loan Agreement is hereby amended as follows:

     

    (a)           By
adding the following new Section 1.3 to the Loan Agreement, in proper numerical
sequence:

     

    1.3           "Applicable
Margin" shall mean:

     

    (a)           during
the period commencing on the Eighteenth Amendment Date and ending on the last
day of the month in which Lender receives and reviews the monthly financial
statements and compliance certificate required to be delivered by Borrower
pursuant to Section 9.6(a) of this Agreement for the month ending on June 30,
2009, (i) as to all Prime Rate Loans that are Revolving Loans, two percent
(2.00%), (ii) as to all Prime Rate Loans that are Term Loans, two and
three-quarters percent (2.75%), (iii) as to all LMIR Loans that are Revolving
Loans, three percent (3.00%), and (iv) as to all LMIR Loans that are Term Loans,
three and three-quarters percent (3.75%); and

     

    (b)           commencing
on the first day of the month immediately following the month in which Lender
receives and reviews the monthly financial statements and compliance certificate
required to be delivered by Borrower pursuant to Section 9.6(a) of this
Agreement for the month ending on June 30, 2009, as to all Loans, the Applicable
Margin determined on a quarterly basis according to the performance of Borrower
as measured by the ratio of  EBITDA to Fixed Charges, for the period
of four (4) fiscal quarters ended on the last day of the fiscal quarter
immediately preceding the applicable Adjustment Date (as defined below), as
follows:

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	
                                                    RATIO OF EBITDA TO

                                                  	 	
                                                    APPLICABLE MARGIN

                                                  	 
	
                                                    FIXED CHARGES

                                                  	 	
                                                    Prime Rate Loans

                                                  	 	 	
                                                    LMIR Loans

                                                  	 
	 
      	 	
                                                    Revolving
Loans

                                                  	 	 	
                                                    Term Loan

                                                  	 	 	
                                                    Revolving
Loans

                                                  	 	 	
                                                    Term Loan

                                                  	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                    Less
      than or equal to 1.3 to 1.0

                                                  	 	 	2.75	%	 	 	3.50	%	 	 	3.75	%	 	 	4.50	%
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                    Greater
      than 1.3 to 1.0, but less than 1.9 to 1.0

                                                  	 	 	2.25	%	 	 	3.00	%	 	 	3.25	%	 	 	4.00	%
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                    Greater
      than or equal to 1.9 to 1.0

                                                  	 	 	2.00	%	 	 	2.75	%	 	 	3.00	%	 	 	3.75	%

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    ; provided that (i) the
Applicable Margin shall thereafter be subject to reduction or increase, as
applicable and as set forth in the table above, on a quarterly basis according
to the performance of Borrower as measured by the ratio of EBITDA to Fixed
Charges as of the last day of the fiscal quarter immediately preceding the
applicable Adjustment Date, for the period of four (4) fiscal quarters ended on
the last day of the fiscal quarter immediately preceding the applicable
Adjustment Date; (ii) except
as set forth in clause (iii) below, any increase or reduction in the Applicable
Margin provided for in this subsection (b) shall be effective on the first day
of the month immediately following Lender's receipt and review of the applicable
financial statements and corresponding compliance certificate (each, an
"Adjustment Date"); (iii) if the financial statements and the corresponding
compliance certificate of Borrower setting forth the ratio of EBITDA to Fixed
Charges are not received by Lender on or prior to the date required pursuant to
Section 9.6(a) of this Agreement, then the Applicable Margin shall be
determined as if the ratio of EBITDA to Fixed Charges is less than 1.3 to 1.0
(without regard to the actual ratio of EBITDA to Fixed Charges) until such time
as such financial statements and compliance certificate are received by Lender
and any Event of Default resulting from Borrower's failure to timely deliver
such financial statements or compliance certificate is waived in writing by
Lender; (iv) on each date that the Default Rate accrues on any Loans, the
Applicable Margin on such date for such Loans shall be determined as if the
ratio of EBITDA to Fixed Charges is less than 1.3 to 1.0 (without regard to the
actual ratio of EBITDA to Fixed Charges); (v) for the final fiscal quarter of
any fiscal year, Borrower may provide the monthly unaudited financial statements
of Borrower required under Section 9.6(a) of this Agreement for the purpose
of determining the Applicable Margin; however, if, upon
delivery of the annual audited financial statements required to be submitted by
Borrower to Lender pursuant to Section 9.6(a) of this Agreement, Borrower has
not met the criteria for reduction of the Applicable Margin pursuant to the
terms hereinabove for the final fiscal quarter of the fiscal year then ended,
then (x) such Applicable Margin reduction shall be terminated and, effective on
the first day of the month immediately following the month in which Lender
receives and reviews such audited financial statements, the Applicable Margin
shall be the Applicable Margin that would have been in effect if such reduction
had not been implemented based upon the monthly unaudited financial statements
of Borrower for the final fiscal quarter of the fiscal year then ended, and (y)
Borrower shall pay to Lender, on demand, the amount equal to the difference
between the amount of interest and fees that would have been paid using the
Applicable Margin determined based upon such audited financial statements and
the amount of interest and fees actually paid during the period in which the
reduction of the Applicable Margin was in effect based upon the monthly
unaudited financial statements for the final fiscal quarter of the fiscal year
then ended.

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    (b)           By
deleting the definition of "Business Day" contained in Section 1.7 of the
Loan Agreement in its entirety and by substituting in lieu thereof the
following:

     

    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 LMIR Loans, then the term Business Day shall also exclude
any day on which banks are closed for dealings in U.S. Dollar deposits in the
London interbank market.

     

    (c)           By
deleting the phrase ", but excluding Vehicles" from the definition of
"Equipment" contained in Section 1.22 of the
Loan Agreement.

     

    (d)           By
adding the following parenthetical to the end of subclause (b)(i) of the
definition of "Excess Availability" contained in Section 1.27 of the
Loan Agreement, immediately following the word "Obligations":

     

    (but not
including for this purpose the then outstanding principal amount of the Term
Loan)

     

    (e)           By
deleting the definition of "Fixed Charges" contained in Section 1.29A of
the Loan Agreement in its entirety and by substituting in lieu thereof the
following:

     

    1.29A        "Fixed
Charges" shall mean, with respect to any period, the sum, calculated for
Borrower and its Subsidiaries on a consolidated basis, of the following, without
duplication: (a) all Interest Charges paid in cash during such period, plus (b) all
principal payments of Indebtedness for borrowed money (for this purpose
including, without limitation, regularly scheduled repayments of the Term Loan
but excluding any prepayments of the Term Loan required by Section 7.4(b) and
any repayments of the Revolving Loans) made during such period and all payments
of Indebtedness for the deferred purchase price of any property or services
(including, without limitation, any indemnification, adjustment of purchase
price, earn-outs or other similar obligations incurred in connection with any
future (i.e., occurring after the Eighteenth Amendment Date) acquisition or sale
or other disposition of assets) and Capital Leases (including, without
duplication of items (a) and (b) of this definition but otherwise without
limitation, the interest component with respect to Indebtedness under Capital
Leases) made during such period, plus (c) the amount
of all Capital Expenditures incurred during such period, to the extent not
financed by Indebtedness permitted under this Agreement for such purpose, plus (d) the amount
of all taxes that are based on (or measured by) income, to the extent that such
taxes are paid in cash during such period and are used or included in the
determination of Net Income for such, or any other, period, plus (e) all
dividends, distributions, repurchases and redemptions in respect of Capital
Stock paid in cash during such period.

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    (f)           By
deleting the definition of "Information Certificate" contained in Section 1.34 of the
Loan Agreement in its entirety and by substituting in lieu thereof the
following:

     

    1.34           "Information
Certificate" shall mean, collectively, (a) the Information Certificate of SMF
Energy Corporation (or its predecessor in interest, Streicher Mobile Fueling,
Inc.) dated on or about August 30, 2002 (as revised on or about September 26,
2002 and on or about February 15, 2007) and delivered to Lender, (b) the
Information Certificate of SMF Services, Inc. dated on or about February 18,
2005 (as revised on or about February 15, 2007) and delivered to Lender, and (c)
the Information Certificate of H & W Petroleum Company, Inc. dated on or
about October 5, 2005  (as revised on or about February 15, 2007) and
delivered to Lender; in each case, containing material information with respect
to Borrower, its business and assets provided by or on behalf of Borrower to
Lender in connection with this Agreement and the other Financing Agreements and
the financing arrangements provided for herein; and, in each case, as such
Information Certificate has been updated and delivered to Lender on June 29,
2009, and as such Information Certificate may be updated after the Eighteenth
Amendment Date from time to time with the consent of Lender.

     

    (g)           By
adding the phrase "patents, patent rights, patent applications," to the
definition of "Intellectual Property" contained in Section 1.35 of the
Loan Agreement, immediately following the word "acquired:" and immediately
preceding the word "copyrights".

     

    (h)           By
deleting the definition of "Interest Charges" contained in Section 1.36 of the
Loan Agreement in its entirety and by substituting in lieu thereof the
following:

     

    1.36           "Interest
Charges" shall mean, with respect to any period, the amount, determined in
accordance with GAAP, equal to the total interest expense of Borrower and its
Subsidiaries on a consolidated basis for such period, whether paid or accrued
(including, without limitation, the interest component of any Capital Lease for
such period), and in any event including, without limitation: (a) bank fees,
commissions, discounts and other fees and charges owed with respect to letters
of credit, banker’s acceptances or similar instruments or any factoring,
securitization or similar arrangements, (b) interest payable by addition to
principal or in the form of property other than cash and any other interest
expense not payable in cash, and (c) to the extent not otherwise included in
such total interest expense, the costs or fees associated with Swap
Agreements.

     

    (i)           By
deleting the definition of "Interest Rate" contained in Section 1.37 of the
Loan Agreement in its entirety and by substituting in lieu thereof the
following:

     

    "Interest
Rate" shall mean:

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    (a)           Subject
to clause (b) of this definition, (i) as to all Prime Rate Loans that are
Revolving Loans, the per annum rate equal to the Prime Rate plus the Applicable
Margin for Prime Rate Loans that are Revolving Loans; (ii) as to all Prime Rate
Loans that are Term Loans, the per annum rate equal to the Prime Rate plus the
Applicable Margin for Prime Rate Loans that are Term Loans; (iii) as to all LMIR
Loans that are Revolving Loans, the per annum rate equal to the LIBOR Market
Index Rate plus the Applicable Margin for LMIR Loans that are Revolving Loans;
and (iv) as to all LMIR Loans that are Term Loans, the per annum rate equal to
the LIBOR Market Index Rate plus the Applicable Margin for LMIR Loans that are
Term Loans; and

     

    (b)           Notwithstanding
anything to the contrary contained herein, at Lender's option and without
notice, the rate of interest (the "Default Rate") equal to three percent (3.00%)
per annum in excess of rate of interest set forth in subsection (a) above, (i)
during the period from and after the Renewal Date (or, if earlier, the date on
which this Agreement is terminated in accordance with the terms hereof) until
such time as all Obligations are indefeasibly paid and satisfied in full in
immediately available funds; (ii) during 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 (iii) 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).

     

    (j)           By
deleting the definition of "Loans" contained in Section 1.43 of the
Loan Agreement in its entirety and by substituting in lieu thereof the
following:

     

    1.43           "Loans"
shall mean, collectively, the Revolving Loans and the Term Loan.

     

    (k)           By
deleting the second sentence of the definition of "Reserves" contained in Section 1.58 of
the Loan Agreement and by substituting in lieu thereof the
following:

     

    Without
limiting the generality of the foregoing, the term "Reserves" as used herein
shall include, without limitation, (a) Dilution Reserves, (b) the aggregate
amount of Borrower's accounts payable owing to Chevron/Texaco at any time, (c)
at any time that the ratio of EBITDA to Fixed Charges, measured as of the last
day of the immediately preceding month for the twelve month period then ending,
is less than 1.25 to 1.00, the aggregate amount of Borrower's payroll for a
period of two weeks with respect to all drivers employed or contracted by
Borrower, and (d) the Disposed Vehicle Reserve.

     

    (l)           By
deleting the definition of "Revolving Loan Limit" contained in Section 1.59 of
the Loan Agreement in its entirety and by substituting in lieu thereof the
following:

     

    "Revolving Loan Limit" shall mean the
amount of $20,000,000.

     

    (m)           By
deleting the definition of "Excluded Assets" contained in Section 1.69 of
the Loan Agreement in its entirety and by substituting in lieu thereof the
following:

     

    1.69           [Reserved]

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    (n)           By
deleting the definition of "Capital Expenditures" contained in Section 1.70 of
the Loan Agreement in its entirety and by substituting in lieu thereof the
following:

     

    1.70           "Capital
Expenditures" shall mean expenditures made or liabilities incurred for the
acquisition of any fixed assets or improvements, replacements, substitutions or
additions thereto that have a useful life of more than one year, including the
total principal portion of Indebtedness under Capital Leases, but excluding any
expenditures made to acquire Vehicles using the proceeds of Loans advanced by
Lender from a reduction of the Disposed Vehicle Reserve in the manner and to the
extent permitted under Section 7.4(b) of this Agreement.

     

    (o)           By
deleting the definition of "Eurodollar Rate" contained in Section 1.74 of
the Loan Agreement in its entirety and by substituting in lieu thereof the
following new definition of "LIBOR Market Index Rate":

     

    1.74           "LIBOR
Market Index Rate" shall mean, for any date of determination, the per annum rate
of interest equal to the greater of (a) three-quarters of one percent (0.75%),
and (b) the rate of interest (rounded upwards, if necessary, to the nearest
1/100 of 1%) appearing on Reuters Screen LIBO Page as the London interbank
offered rate for one (1) month U.S. Dollar deposits at approximately 11:00 a.m.
(London time) on such date, or, if such date is not a Business Day, then the
immediately preceding Business Day (or, if not so reported, then as determined
by Lender from another recognized source or interbank quotation); provided, however, that, if
more than one rate is specified on Reuters Screen LIBO Page, then the applicable
rate shall be the arithmetic mean of all such specified rates.

     

    (p)           By
deleting the definition of "Eurodollar Rate Loans" contained in Section 1.75 of
the Loan Agreement in its entirety and by substituting in lieu thereof the
following new definition of "LMIR Loans":

     

    1.75           "LMIR
Loans" shall mean any Loans, or portion thereof, on which interest is payable
based on the LIBOR Market Index Rate in accordance with the terms
hereof.

     

    (q)           By
deleting the definition of "LIBOR" contained in Section 1.77 of
the Loan Agreement in its entirety and by substituting in lieu thereof the
following:

     

    1.77           [Reserved]

     

    (r)           By
deleting the definition of "Reprieve Period" contained in Section 1.82 of
the Loan Agreement in its entirety and by substituting in lieu thereof the
following:

     

    1.82           [Reserved]

     

    (s)           By
adding the following new Sections 1.90, 1.91, 1.92, 1.93, 1.94, 1.95 and
1.96 to the Loan Agreement, in proper numerical sequence:

     

    1.90           "Disposed
Vehicle Reserve" shall have the meaning ascribed to such term in Section
9.7(b)(iv).

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    1.91           "Eighteenth
Amendment" shall mean that certain Eighteenth Amendment to Loan and Security
Agreement, dated June 29, 2009, by and among Borrower and Lender.

     

    1.92           "Eighteenth
Amendment Date" shall mean June 29, 2009.

     

    1.93           "Net
Orderly Liquidation Value" shall mean, with respect to Borrower's Vehicles, the
net orderly liquidation value of such Vehicles as contained in the most recent
appraisal delivered to Lender pursuant to Section 7.4(b), or, in the case of
Vehicles acquired subsequently to any such appraisal, the net orderly
liquidation value of such Vehicles as determined by Lender based on the purchase
price of such Vehicles, the information contained in the most recent appraisal
delivered to Lender for similar Vehicles, the blue book values of such Vehicles,
and such other information or documentation as Lender deems relevant or
appropriate.

     

    1.94           "Required
LTV Percentage" shall have the meaning ascribed to such term in Section
7.4(b).

     

    1.95           "Term
Loan" shall mean the term loan made by or on behalf of Lender to Borrower as
provided for in Section 2.3.

     

    1.96           "Term
Note" shall have the meaning ascribed to such term in Section 2.3.

     

    (t)           By
adding the following new Section 2.3 to the Loan Agreement, immediately
following the end of existing Section 2.2:

     

    2.3           Term
Loan.  Subject to and upon the terms and conditions contained
herein, on the Eighteenth Amendment Date Lender is making the Term Loan to
Borrower in the original principal amount of $5,000,000.00.  The Term
Loan is (i) evidenced by a term note in such original principal amount
(substantially in the form of Exhibit A to the Eighteenth Amendment) duly
executed and delivered by Borrower to Lender on the Eighteenth Amendment Date
(the "Term Note"), (ii) to be repaid, together with interest and other amounts,
in accordance with this Agreement, the Term Note, and the other Financing
Agreements, and (iii) secured by all of the Collateral.

     

    The
principal amount of the Term Loan shall be repaid in sixty (60) consecutive
monthly installments (or earlier as provided herein) payable on the first day of
each month commencing on August 1, 2009, of which the first fifty-nine (59)
installments shall each be in the amount of $83,333.00 and the last installment
shall be in the amount of the entire unpaid balance of the Term
Loan.  Notwithstanding anything to the contrary contained herein, the
entire unpaid balance of the Term Loan shall be payable on the Renewal Date or,
if earlier, the date on which this Agreement is terminated in accordance with
the terms hereof.

     

    (u)           By
deleting Section 3.1 of
the Loan Agreement in its entirety and by substituting in lieu thereof the
following:

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    3.1           Interest.

     

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

     

    (b)           Each
Loan outstanding on the Eighteenth Amendment Date shall be converted
automatically to a LMIR Loan as of the Eighteenth Amendment
Date.  Each Loan made on or after the Eighteenth Amendment Date shall
be a LMIR Loan, unless at the time such Loan is made all outstanding Loans are
Prime Rate Loans, in which case such Loan shall (subject to Section 3.5 of this
Agreement) be a Prime Rate Loan.  Subject to Section 3.5 of this
Agreement, Borrower may from time to time request that all Loans be either LMIR
Loans or Prime Rate Loans (in which case, all outstanding Prime Rate Loans would
be converted to LMIR Loans or all outstanding LMIR Loans would be converted to
Prime Rate Loans, as applicable), in each instance by delivering to Lender
written notice of such request at least five (5) Business Days prior to the date
on which such conversion is to occur.  Any request by Borrower to
convert Prime Rate Loans to LMIR Loans or LMIR Loans to Prime Rate Loans shall
be irrevocable.

     

    (c)           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 shall increase or decrease by an amount equal
to each increase or decrease in the Prime Rate or LIBOR Market Index Rate, as
applicable, effective on the date any change in such Prime Rate or LIBOR Market
Index Rate is effective.  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.

     

    (v)           By
deleting Section 3.4 of
the Loan Agreement in its entirety and by substituting in lieu thereof the
following:

     

    3.4           Unused Line
Fee.  Borrower shall pay to Lender monthly an unused line fee
at the per annum rate equal to one-half of one percent (0.50%) of the amount by
which the Revolving Loan Limit exceeds the average daily principal balance of
the outstanding Revolving Loans and Letter of Credit Accommodations during the
immediately preceding month (or part thereof) while this Agreement is in effect
and for so long thereafter as any of the Obligations are outstanding, which fee
shall be payable on the first day of each month in arrears.

     

    (w)           By
deleting subsections (b), (c) and (d) of Section 3.5 of the
Loan Agreement and by substituting in lieu thereof the
following:

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    (b)           If
at any time, (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 LIBOR Market Index Rate, (ii) Lender determines that the LIBOR
Market Index Rate will not adequately and fairly reflect the cost to Lender of
making or maintaining LMIR Loans, or (iii) U.S. Dollar deposits in the
principal amounts of the LMIR Loans are not generally available in the London
interbank market, then Lender shall give electronic mail, telecopy or telephonic
notice thereof to Borrower as soon as practicable thereafter, and will also give
prompt electronic mail, telecopy or telephonic notice to Borrower when such
conditions no longer exist.  If such notice is given, then (x) any
LMIR Loans requested to be made shall be made as Prime Rate Loans, and (y) each
outstanding LMIR Loan shall be converted automatically to a Prime Rate
Loan.  Until such notice has been withdrawn by Lender, no further LMIR
Loans shall be made, nor shall Borrower have the right to convert Prime Rate
Loans to LMIR Loans.

     

    (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 LMIR Loans as contemplated by this Agreement, then (i) Lender
shall promptly give electronic mail, telecopy or telephonic notice of such
circumstances to Borrower (and will also give prompt electronic mail, telecopy
or telephonic notice to Borrower when such circumstances no longer exist), (ii)
the commitment of Lender hereunder to make LMIR Loans and convert Prime Rate
Loans to LMIR Loans shall forthwith be canceled and, until such time as it shall
no longer be unlawful for Lender to make or maintain LMIR Loans, Lender shall
then have a commitment only to make a Prime Rate Loan when a LMIR Loan is
requested, and (iii) Loans then outstanding as LMIR Loans, if any, shall be
converted automatically to Prime Rate Loans.

     

    (x)           By
deleting the parenthetical "(except Vehicles)" contained in the first sentence
of Section 5.1
of the Loan Agreement and by substituting in lieu thereof the parenthetical
"(including, without limitation, all Vehicles, patents, patent rights and patent
applications)".

     

    (y)           By
adding the following new subsection (j) to the end of Section 5.2 of
the Loan Agreement, immediately following the end of the existing subsection (i)
thereof:

     

    (j)           Without
limiting the generality of the requirements of Section 5.2(i)(ii)
hereof:

     

    (i)           On
the Eighteenth Amendment Date, Borrower agrees to cause the security interest
and lien of Lender hereunder to be noted as the first and only lien on
certificates of title relating to each Vehicle owned by Borrower on the
Eighteenth Amendment Date, including each Vehicle listed on the Information
Certificate, and promptly to execute and deliver to Lender such title
applications, lien notation documents and other information and documentation as
may be required under all applicable laws of the respective states in which such
Vehicles are titled to cause Lender's lien to attach, be perfected and have
first priority as against all other security interests, liens or other
encumbrances with respect to such Vehicles, and Borrower agrees promptly on
demand to pay (or to reimburse Lender for the payment of) all title registration
fees and other costs associated therewith.

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    (ii)           With
respect to any Vehicle acquired by Borrower after the Eighteenth Amendment Date,
(A) on or before the Relation Back Date (as defined below) with respect to such
Vehicle, Borrower agrees to execute and deliver to Lender (or, with Lender's
written consent, deliver to the applicable governmental office) such title
applications, lien notation documents and other information and documentation as
may be required under all applicable laws of the state in which such Vehicle is
titled to cause Lender's lien to attach, be perfected and have first priority as
against all other security interests, liens or other encumbrances with respect
to such Vehicle, and Borrower agrees promptly on demand to pay (or to reimburse
Lender for the payment of) all title registration fees and other costs
associated therewith, and (B) in connection with any such acquisition, Lender
agrees to reduce the Disposed Vehicle Reserve in the amount equal to the Net
Orderly Liquidation Value of such Vehicle, so long as (x) such acquired Vehicle
is of the same type as the Vehicle or Vehicles the sale or other disposition of
which give rise to the portion of the Disposed Vehicle Reserve to be reduced,
(y) at the time of such acquisition, no Default or Event of Default exists, and
(z) after giving effect to the proposed acquisition and reduction in the
Disposed Vehicle Reserve, the principal balance of the Term Loan minus the amount of
the Disposed Vehicle Reserve is not greater than seventy-five percent (75%) of
the Net Orderly Liquidation Value of Borrower's Vehicles.

     

    As used
herein, the term "Relation Back Date"
shall mean the date that is five (5) Business Days prior to the date by which
title applications and other lien notation documentation and associated fees
must, under the applicable law of the state in which such Vehicle is titled, be
submitted to the applicable governmental office in order for Lender's security
interest or lien to relate back to the date of Borrower's acquisition of such
Vehicle.

     

    (iii)           Lender
agrees, at Borrower's expense, to execute lien release documentation reasonably
requested by Borrower with respect to any certificate of title relating to a
Vehicle that is sold, transferred or otherwise disposed of by Borrower in
accordance with Section 9.7(b)(iv) hereof.

     

    (z)           By
deleting the third sentence of Section 6.4(a) of the
Loan Agreement and by substituting in lieu thereof the following:

     

    Notwithstanding
anything to the contrary contained in this Agreement, to the extent that
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 Letter 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.

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    (aa)           By
(i) adding the designation "(a)" to Section 7.4 of the
Loan Agreement, immediately following the header of such Section and immediately
preceding the text of such Section, with the effect that the existing text of
such Section (as further amended in clause (ii) hereof) will hereafter
constitute subsection 7.4(a) of the Loan Agreement; (ii) adding the
parenthetical "(except Vehicles)" to clause (i) of such subsection 7.4(a),
immediately following the word "Equipment" and immediately preceding the word
"having"; and (iii) adding the following new subsection 7.4(b) to the Loan
Agreement, immediately following the end of such subsection 7.4(a):

     

    (b)           With
respect to Equipment consisting of Vehicles: (i) at Lender's request up to twice
per year, and at any other time or times as Lender requests after an Event of
Default, Borrower shall, at its expense, deliver or cause to be delivered to
Lender written appraisals as to such Vehicles, in form, scope and methodology
acceptable to Lender and by an appraiser acceptable to Lender, addressed to
Lender and upon which Lender is expressly permitted to rely (it being understood
that, in the absence of an Event of Default, no more than one appraisal per year
shall be required to be a "full" appraisal and all appraisals in excess of one
per year may be "desktop" appraisals); and (ii) if, on the date of Lender's
receipt of the applicable appraisal, the principal balance of the Term Loan
minus the
balance of the Disposed Vehicle Reserve exceeds the Required LTV Percentage of
the Net Orderly Liquidation Value of Borrower's Vehicles, then Borrower shall
prepay the principal balance of the Term Loan in the amount of such excess, in
the inverse order of its maturity, within ten (10) Business Days after Lender
delivers written notice to Borrower of the existence of such circumstance and
the amount of such excess.  As used herein, the term "Required LTV
Percentage" means, (X) eighty-five percent (85%) during the period
beginning on the Eighteenth Amendment Date and ending on June 30, 2010, (Y)
eighty percent (80%) during the period beginning on July 1, 2010 and ending on
June 30, 2011, and (Z) seventy-five percent (75%) at all times on and after July
1, 2011.

     

    (bb)           By
deleting the parenthetical "(except with respect to the Vehicles)" from Section 9.5 of
the Loan Agreement.

     

    (cc)           By
deleting Section 9.7 of
the Loan Agreement in its entirety and by substituting  in lieu
thereof the following:

     

    9.7           Sale of Assets,
Consolidation, Merger, Dissolution, Etc.  Borrower shall not,
and shall not permit any Subsidiary to (and Lender does not authorize Borrower
or any Subsidiary to), directly or indirectly:

     

    (a)           merge
into or with or consolidate with any other Person or permit any other Person to
merge into or with or consolidate with it; or

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    (b)           sell,
assign, lease, transfer, abandon or otherwise dispose of any Capital Stock or
Indebtedness to any other Person or any of the Collateral to any other Person,
except for (i) sales of Inventory in the ordinary course of business; (ii) the
disposition of worn-out or obsolete Equipment other than Vehicles so long as (A)
any proceeds are paid to Lender and (B) such sales do not involve Equipment
having an aggregate fair market value in excess of $200,000.00 for all such
Equipment disposed of in any fiscal year of Borrower; (iii) the issuance and
sale by Borrower of Capital Stock of Borrower after the date hereof; provided, that, (A) Lender
shall have received not less than ten (10) Business Days prior written notice of
such issuance and sale by Borrower, which notice shall specify the parties to
whom such shares are to be sold, the terms of such sale, the total amount which
it is anticipated will be realized from the issuance and sale of such stock and
the net cash proceeds which it is anticipated will be received by Borrower from
such sale, (B) Borrower shall not be required to pay any cash dividends or
repurchase or redeem such Capital Stock or make any other payments in respect
thereof, (C) the terms of such Capital Stock, and the terms and conditions of
the purchase and sale thereof, shall not include any terms that include any
limitation on the right of Borrower to request or receive Loans or Letter of
Credit Accommodations or the right of Borrower to amend or modify any of the
terms and conditions of this Agreement or any of the other Financing Agreements
or otherwise in any way relate to or affect the arrangements of Borrower with
Lender or are more restrictive or burdensome to Borrower than the terms of any
Capital Stock in effect on the date hereof, (D) except as Lender may otherwise
agree in writing, all of the proceeds from such sale and issuance shall be paid
to Lender for application to the Obligations in such order and manner as Lender
may determine, (E) as of the date of such issuance and sale and after giving
effect thereto, no Default or Event of Default shall exist or have occurred, and
(F) Borrowers shall not issue any preferred Capital Stock (except that SMF may
issue up to $2,000,000 in aggregate principal amount of its Series D Preferred
Stock); and (iv) sales or other dispositions of worn-out or obsolete Vehicles in
the ordinary course of business of Borrower, so long as (A) no Default or Event
of Default exists at the time of any such sale or other disposition, (B)
Borrower has provided Lender with written notice of the proposed sale or
disposition not less than five (5) Business Days prior to the consummation
thereof, and Lender has provided its prior written consent to such sale or other
disposition, and (C) no later than three (3) Business Days after the sale or
other disposition of such Vehicle, Borrower shall have remitted the net sale
proceeds thereof to Lender, in cash, which shall be applied by Lender to the
outstanding balance of the Revolving Loans at such time and a Reserve against
the Borrowing Base established (or increased) in the amount of such net proceeds
(the "Disposed Vehicle Reserve"); or

     

    (c)           wind
up, liquidate or dissolve; or

     

    (d)           agree
to do any of the foregoing.

     

    (dd)           By
deleting Section
9.8(g) of the Loan Agreement in its entirety.

     

    (ee)           By
deleting Section
9.9(g) of the Loan Agreement in its entirety and by substituting in lieu
thereof the following:

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    (g)           unsecured
Indebtedness of Borrower to one or more outside investors, pursuant to
documentation (including but not limited to one or more promissory notes due
June 2014), and on terms, satisfactory to Lender in its sole discretion, in an
aggregate principal amount not to exceed $1,000,000 (the "Outside Investor
Subordinated Debt"); provided, that the
Outside Investor Subordinated Debt shall be subject at all times to the terms of
that certain Subordination Agreement dated on or about the Eighteenth Amendment
Date among the holders of the Outside Investor Subordinated Debt (and such other
loan holders as may join as a party to such subordination agreement as
contemplated therein), Borrower and Lender.

     

    (ff)           By
deleting Section
9.19(f) of the Loan Agreement in its entirety and by substituting in lieu
thereof the following:

     

    (f) all
out-of-pocket expenses and costs from time to time hereafter incurred by Lender
during the course of periodic field examinations of the Collateral and
Borrower's operations, plus a per diem charge at the rate of $850 per person per
day (plus all out-of-pocket expenses and costs) for Lender's examiners in the
field and office; provided, however, that, in the
absence of an Event of Default, Lender shall conduct no more than three (3) such
examinations in any twelve (12) month period, exclusive of acquisition
preliminary examinations and take-over examinations; and

     

    (gg)           By
deleting Section
9.21 of the Loan Agreement in its entirety and by substituting in lieu
thereof the following:

     

    9.21           Fixed Charge Coverage
Ratio.  With respect to each calendar month, Borrower shall not
permit the ratio of EBITDA to Fixed Charges, measured as of the last day of such
month for the twelve (12) month period then ending, to be less than 1.1 to
1.0.

     

    (hh)           By
deleting Section
9.22 of the Loan Agreement in its entirety and by substituting in lieu
thereof the following:

     

    9.22           Excess
Availability.  Borrower shall maintain Excess Availability as
determined by Lender in an amount not less than $250,000 at all
times.

     

    (ii)           By
deleting the first sentence of Section 12.1(a) of
the Loan Agreement and by substituting in lieu thereof the
following:

     

    (a)           This
Agreement and the other Financing Agreements shall become effective as of the
date set forth on the first page hereof and shall continue in full force and
effect, unless sooner terminated pursuant to the terms hereof, for a term ending
on July 1, 2012 (the "Renewal Date").

     

    (jj)           By
deleting Schedule
A to the Loan Agreement in its entirety.

     

    3.           Borrower
hereby reaffirms the grant of, and hereby grants, the security interest in
property described in and pursuant to the Loan Agreement.  As security
for the prompt payment and performance of all of the Obligations, Borrower
hereby grants and re-grants to Lender a continuing security interest in, and
lien upon all, and right of setoff against, and hereby assigns and re-assigns to
Lender as security, all personal and real property and fixtures, and interests
in real and personal property and fixtures, of Borrower, whether now owned or
hereafter acquired or existing, and wherever located, including, without
limitation:

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (a)

            	
              all
      Accounts;

            

    

     

    
      	
               
      

            	
              (b)

            	
              all
      general intangibles, including, without limitation, all Intellectual
      Property (including, without limitation, all patents, patent rights and
      patent applications);

            

    

     

    
      	
               
      

            	
              (c)

            	
              all
      goods, including, without limitation, Inventory and Equipment (including,
      without limitation, all Vehicles);

            

    

     

    
      	
               
      

            	
              (d)

            	
              all
      Real Property and fixtures;

            

    

     

    
      	
               
      

            	
              (e)

            	
              all
      chattel paper (including, without limitation, all tangible and electronic
      chattel paper);

            

    

     

    
      	
               
      

            	
              (f)

            	
              all
      instruments (including, without limitation, all promissory
      notes);

            

    

     

    
      	
               
      

            	
              (g)

            	
              all
      documents;

            

    

     

    
      	
               
      

            	
              (h)

            	
              all
      deposit accounts;

            

    

     

    
      	
               
      

            	
              (i)

            	
              all
      letters of credit, banker's acceptances and similar instruments and
      including all letter-of-credit
rights;

            

    

     

    
      	
               
      

            	
              (j)

            	
              all
      supporting obligations and all present and future liens, security
      interests, rights, remedies, title and interest in, to and in respect of
      Receivables and other Collateral, including, without limitation
      (i) rights and remedies under or relating to guaranties, contracts of
      suretyship, letters of credit and credit and other insurance related to
      the Collateral, (ii) rights of stoppage in transit, replevin,
      repossession, reclamation and other rights and remedies of an unpaid
      vendor, lienor or secured party, (iii) goods described in invoices,
      documents, contracts or instruments with respect to, or otherwise
      representing or evidencing, Receivables or other Collateral, including,
      without limitation, returned, repossessed and reclaimed goods, and
      (iv) deposits by and property of account debtors or other persons
      securing the obligations of account
debtors;

            

    

     

    
      	
               
      

            	
              (k)

            	
              all
      (i) investment property (including, without limitation, securities,
      whether certificated or uncertificated, securities accounts, security
      entitlements, commodity contracts or commodity accounts) and
      (ii) monies, credit balances, deposits and other property of Borrower
      now or hereafter held or received by or in transit to Lender or its
      Affiliates or at any other depository or other institution from or for the
      account of Borrower, whether for safekeeping, pledge, custody,
      transmission, collection or
otherwise;

            

    

     

    
      	
               
      

            	
              (l)

            	
              all
      commercial tort claims, including, without limitation, those disclosed to
      Lender in writing;

            

    

     

    
      	
               
      

            	
              (m)

            	
              to
      the extent not otherwise described above, all
  Receivables;

            

    

     

    
      	
               
      

            	
              (n)

            	
              all
      Records; and

            

    

     

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (o)

            	
              all
      products and proceeds of the foregoing, in any form, including, without
      limitation, insurance proceeds and all claims against third parties for
      loss or damage to or destruction of or other involuntary conversion of any
      kind or nature of any or all of the other
  Collateral.

            

    

     

    4.           Borrower
hereby ratifies and reaffirms the Obligations, each of the Financing Agreements
and all of Borrower's covenants, duties, indebtedness and liabilities under the
Financing Agreements.

     

    5.           To
induce Lender to enter into this Amendment and to grant the accommodations set
forth herein, Borrower hereby acknowledges and stipulates that the Loan
Agreement and the other Financing Agreements executed by Borrower are legal,
valid and binding obligations of Borrower that are enforceable against Borrower
in accordance with the terms thereof; all of the Obligations are owing and
payable without defense, offset or counterclaim (and, to the extent that there
exists any such defense, offset or counterclaim on the date hereof, the same is
hereby waived by Borrower); and the security interests and liens granted by
Borrower in favor of Lender are duly perfected, first priority security
interests and liens.

     

    6.           To
induce Lender to enter into this Amendment and to grant the accommodations set
forth herein, Borrower hereby represents and warrants to Lender that no Default
or Event of Default exists on the date hereof; the execution, delivery and
performance of this Amendment have been duly authorized by all requisite
corporate action on the part of Borrower and this Amendment has been duly
executed and delivered by Borrower; and, except as may have been disclosed in
writing by Borrower to Lender prior to the date hereof, each of the
representations and warranties made by Borrower in the Loan Agreement are true
and correct on and as of the date hereof.

     

    7.           In
consideration of Lender's willingness to enter into this Amendment and to grant
the accommodations set forth herein, Borrower hereby agrees to pay to Lender (i)
a nonrefundable amendment and commitment fee (the "Amendment Fee") in the amount
of seventy-five thousand dollars ($75,000) in immediately available funds on the
date hereof, which shall be fully earned on the date hereof, and (ii) on demand, all costs and
expenses incurred by Lender in connection with the preparation, negotiation and
execution of this Amendment and any other Financing Documents executed or
delivered pursuant hereto and any and all amendments, modifications, and
supplements thereto, including, without limitation, the costs and fees of
Lender's legal counsel and any taxes or expenses associated with or incurred in
connection with any instrument or agreement referred to herein or contemplated
hereby.  Without limiting the generality of the foregoing, Borrower
hereby agrees to pay, or to reimburse Lender for the payment of, all title
application fees and other costs associated with the notation of Lender's
security interest upon certificates of title with respect to Borrower's
Vehicles, and any documentary stamps, intangibles recording taxes or other
amounts required to be paid by Borrower or Lender in connection with this
Amendment, the Term Note or any other agreement, instrument or document executed
or delivered in connection therewith or the transactions contemplated
thereby.

     

    8.           The
effectiveness of each of the amendments to the Loan Agreement set forth in this
Amendment is subject to the satisfaction of each of the following conditions
precedent, in each case in form and substance satisfactory to
Lender:

     

    
      	
               
      

            	
              (a)

            	
              Lender
      shall have received duly executed and delivered counterparts of this Amendment and the
      attached Acknowledgment
      and Agreement of Guarantor from Borrower and Guarantor,
      respectively;

            

    

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              Lender
      shall have received duly executed and delivered Closing and Incumbency
      Certificates from Borrower and Guarantor, together with a certified
      copy of the articles of
      incorporation, bylaws and resolutions of the board
      of directors of Borrower and Guarantor, and certificates of good
      standing issued as of a recent date by each state in which Borrower
      and Guarantor, respectively, are required to be qualified in order to
      operate their businesses as currently
conducted;

            

    

     

    
      	
               
      

            	
              (c)

            	
              Lender
      shall have received an original counterpart of the Term Note, duly executed
      and delivered by Borrower;

            

    

     

    
      	
               
      

            	
              (d)

            	
              Lender
      shall have received an original counterpart of a Trademark Security
      Agreement, Patent Security Agreement, deposit account control agreements
      and all other security
      documents required by Lender in connection herewith, each in form
      and substance satisfactory to
Lender;

            

    

     

    
      	
               
      

            	
              (e)

            	
              Lender
      shall have received from Borrower and Guarantor an updated Information
      Certificate;

            

    

     

    
      	
               
      

            	
              (f)

            	
              Lender
      shall have received and reviewed the results of lien searches with
      respect to Borrower, Guarantor and their respective assets, and Lender
      shall be satisfied that, after giving effect to the transactions
      contemplated hereby, the Collateral shall not be encumbered by any
      security interests, liens or other encumbrances other than as permitted by
      Section 9.8
      of the Loan Agreement, after giving effect to this
    Amendment;

            

    

     

    
      	
               
      

            	
              (g)

            	
              Lender
      shall have received, with respect to the Outside Investor Subordinated
      Debt, copies of each agreement, instrument or document executed or
      delivered by Borrower or the holders of the Outside Investor Subordinated
      Debt in connection with the incurrence of, or otherwise evidencing, such
      Indebtedness, and a duly executed and delivered Debt Subordination
      Agreement from the holders of the Outside Investor Subordinated
      Debt, in form and substance satisfactory to Lender in its
      discretion;

            

    

     

    
      	
               
      

            	
              (h)

            	
              Lender
      shall have received a duly executed and delivered payoff letter from
      American National Bank, as indenture trustee, in form and substance
      satisfactory to Lender, which shall, among other things, provide evidence
      that, after giving effect to the consummation of this Amendment, all of
      the Indebtedness of Borrower listed on Exhibit B
      attached hereto shall have been satisfied and repaid in full, all liens,
      security interests and other encumbrances securing such Indebtedness shall
      have been released and terminated of record, and Lender shall have
      reviewed and found satisfactory in all respects the capital structure of
      Borrower and Guarantor after giving effect to the transactions
      contemplated hereby;

            

    

     

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (i)

            	
              Lender
      shall have received original certificates of title
      with respect to all Collateral consisting of Equipment the ownership of
      which is evidenced by such a certificate, which shall bear all signatures
      required to release the interest of the holder of any liens noted thereon,
      or Lender shall be satisfied that, simultaneously with the consummation of
      the transactions contemplated by this Amendment, the holder of any such
      liens will execute any such releases and deliver the original certificates
      of title to Lender, and Lender shall have received from Borrower duly
      executed title
      applications and lien notation forms with respect to each such
      certificate of title, each in form and substance satisfactory to
      Lender;

            

    

     

    
      	
               
      

            	
              (j)

            	
              Lender
      shall have received a duly executed and delivered UCC pre-filing authorization
      letter from Borrower and Guarantor, authorizing Lender to file
      UCC-1 financing statements with respect to all or any portion of the
      personal property of Borrower and Guarantor, and Lender shall have
      received evidence of the filing of such financing statements in the
      applicable recording offices with respect
  thereto;

            

    

     

    
      	
               
      

            	
              (k)

            	
              Lender
      shall have received from counsel for Borrower and Guarantor a duly
      executed and delivered opinion letter as to
      such matters as Lender requires, which shall be in form and substance
      satisfactory to Lender and its
counsel;

            

    

     

    
      	
               
      

            	
              (l)

            	
              Lender
      shall have received from Borrower a duly executed and delivered post-closing letter as
      to such matters as Lender requires, which shall be in form and substance
      satisfactory to Lender and its
counsel;

            

    

     

    
      	
               
      

            	
              (m)

            	
              Lender
      shall have received such other documents, instruments and agreements as
      Lender requires, including, without limitation, any items listed on the
      Schedule of Closing
      Documents circulated by Lender's counsel in connection herewith,
      all of which shall be in form and substance satisfactory to
      Lender;

            

    

     

    
      	
               
      

            	
              (n)

            	
              Lender
      shall have received full payment of the Amendment Fee;
      and

            

    

     

    
      	
               
      

            	
              (o)

            	
              no
      Default or Event of Default
      shall exist or occur on the date
hereof.

            

    

     

    9.           Upon
the effectiveness of this Amendment, each reference in the Loan Agreement to
"this Agreement," "hereunder," or words of like import shall mean and be a
reference to the Loan Agreement, as amended by this Amendment.

     

    10.           This
Amendment shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns.

     

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

     

    12.           Except
as otherwise expressly provided in this Amendment, nothing herein shall be
deemed to amend or modify any provision of the Loan Agreement or any of the
other Financing Agreements, each of which shall remain in full force and
effect.  This Amendment is not intended to be, nor shall it be construed to
create, a novation or accord and satisfaction, and the Loan Agreement as herein
modified shall continue in full force and effect.

     

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

    13.           This
Amendment may be executed in any number of counterparts and by different parties
to this Amendment on separate counterparts, each of which, when so executed,
shall be deemed an original, but all such counterparts shall constitute one and
the same agreement.  Any manually-executed signature page delivered by a
party by facsimile or other electronic transmission shall be deemed to be an
original signature page hereto.  Any party delivering a manually-executed
counterpart of this Amendment by facsimile or other electronic transmission
shall also deliver an original executed counterpart of this Amendment, but the
failure to deliver an original executed counterpart shall not affect the
validity, enforceability and binding effect of this Amendment.

     

    14.           To
induce Lender to enter into this Amendment and to grant the accommodations set
forth herein, Borrower hereby releases and forever discharges 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, whether liquidated or
unliquidated, contingent or fixed, determined or undetermined, at law or in
equity, which Borrower had, now has, or may at any time 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 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 acknowledges that this
provision is a material inducement for Lender entering into this Amendment and
that this provision shall survive the payment in full of all Obligations and the
termination of all Financing Agreements.

    

    [Remainder of page intentionally left
blank - signatures commence on following page]

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

    To the fullest extent permitted by
applicable law, each party hereto hereby waives the right to trial by jury in
any action, suit, counterclaim or proceeding arising out of or related to this
Amendment.

     

    IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
and delivered by their duly authorized officers on the day and year first above
written.

     

    
      
        
          
            
              
                	 
      	
                        "LENDER":

                      
	 
      	 
      	 
      
	 
      	WACHOVIA
      BANK, NATIONAL ASSOCIATION
	 
      	 
      	 
      
	 
      	
                        By:

                      	
                              
                          /s/
      Pat Cloninger

                        

                      
	 
      	
                        Name:

                      	
                        Pat
      Cloninger

                      
	 
      	
                        Title:

                      	
                        Director

                      
	 
      	 
      	 
      
	 
      	
                        "BORROWER":

                      
	 
      	 
      	 
      
	 
      	
                        SMF
      ENERGY CORPORATION

                      
	 
      	 
      	 
      
	 
      	
                        By:

                      	
                              
                          /s/
      Michael S. Shore

                        

                      
	 
      	
                        Name:

                      	
                        Michael
      S. Shore

                      
	 
      	
                        Title:

                      	
                        Senior
      Vice President &

                      
	 
      	 
      	
                        Chief
      Financial Officer

                      
	 
      	 
      	 
      
	 
      	
                        SMF
      SERVICES, INC.

                      
	 
      	 
      	 
      
	 
      	
                        By:

                      	
                              
                          /s/
      Michael S. Shore

                        

                      
	 
      	
                        Name:

                      	
                        Michael
      S. Shore

                      
	 
      	
                        Title:

                      	
                        Senior
      Vice President &

                      
	 
      	 
      	
                        Chief
      Financial Officer

                      
	 
      	 
      	 
      
	 
      	
                        H
      & W PETROLEUM COMPANY, INC.

                      
	 
      	 
      	 
      
	 
      	
                        By:

                      	
                              
                          /s/
      Michael S. Shore

                        

                      
	 
      	
                        Name:

                      	
                        Michael
      S. Shore

                      
	 
      	
                        Title:

                      	
                        Senior
      Vice President &

                      
	 
      	 
      	
                        Chief
      Financial
Officer

                      

              

            

          

        

      

    

    

    Eighteenth
Amendment to Loan and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    ACKNOWLEDGMENT AND AGREEMENT
OF GUARANTOR

    

    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 Amendment or any future amendment to the Loan
Agreement but, nevertheless, consents to all terms and provisions of the
foregoing Amendment that are applicable to it, and agrees to be bound by and
comply with such terms and provisions, and (3) acknowledges and confirms that
its guaranty in favor of Lender executed in connection with the Loan 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 guaranty in connection with the Loan
Agreement, as modified by the foregoing Amendment.

    

    
      
        
          	 
      	
                  "GUARANTOR":

                
	 
      	 
      
	 
      	
                  STREICHER REALTY,
      INC.,

                
	 
      	
                  a
      Florida corporation

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                    

                	
                  /s/ Michael
      S. Shore

                
	 
      	
                  Name:

                	
                  Michael
      S. Shore

                
	 
      	
                  Title:

                	
                  Senior
      Vice President & Chief Financial
Officer

                

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    Form of Term
Note

    

    [See
attached]

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
B

    

    Indebtedness to be Satisfied
and Repaid in Full

    

    [See
attached]DEBT SUBORDINATION
AGREEMENT

    

    THIS DEBT
SUBORDINATION AGREEMENT (this "Agreement") is made and entered into this _____
day of June, 2009, among __________________________
("Subordinate Creditor"), a ____________________________________, SMF ENERGY CORPORATION, a
Delaware corporation ("SMF"), SMF SERVICES, INC., a Delaware
corporation ("SSI"), H & W
PETROLEUM COMPANY, INC., a Texas corporation ("H&W"; each of SMF, SSI
and H&W is sometimes referred to herein individually as a "Debtor," and
collectively they are sometimes referred to herein as "Debtors"), and WACHOVIA BANK, NATIONAL
ASSOCIATION, a national banking association (together with its successors
and assigns, "Lender").

    

    Recitals:

     

    SMF is
now and may from time to time hereafter be indebted to Subordinate Creditor,
including under the Subordinated Note (defined below) executed by SMF in favor
of Subordinate Creditor.

     

    Debtors
desire to continue to obtain loans, extensions of credit or other financial
accommodations from Lender, which loans shall materially benefit
Debtors.

     

    Because
the Subordinated Note is convertible into shares of SMF’s common stock,
Subordinate Creditor has an equity stake in SMF and will therefore benefit from
Lender’s continuing to extend loans to Debtors.

     

    Lender is
willing to continue to provide such financial accommodations to Debtors on the
condition that Subordinate Creditor and Debtors enter into this Agreement with
Lender.

     

    NOW,
THEREFORE, for TEN DOLLARS ($10.00) and other valuable consideration and the
mutual covenants herein, and to induce Lender to provide financial
accommodations to or for the benefit of Debtors, the parties hereto, intending
to be legally bound hereby, do agree as follows:

     

    1.           Definitions;
Rules of Construction.

     

    (a)           In
addition to such other terms as are elsewhere defined herein, as used in this
Agreement, the following terms shall have the following meanings:

     

    "Bankruptcy Code"
means title 11 of the United States Code.

     

    "Business Day" shall
have the meaning ascribed to it in the Loan Agreement.

     

    "Collateral" shall
have the meaning ascribed to it in the Loan Agreement.

     

    "Default" shall have
the meaning ascribed to it in the Loan Agreement.

     

    "Event of Default"
shall have the meaning ascribed to it in the Loan Agreement.

     

    "Full Payment" means,
with respect to the Senior Debt, (i) the indefeasible payment in full, in cash,
of all of the Senior Debt, including, in the case of contingent obligations
(such as, by way of example only, undrawn letters of credit that are issued or
procured by Lender), the depositing of cash with Lender equal to 105% of the
amount of such contingent obligations as security for the payment of such
contingent obligations, and (ii) termination of all commitments or other
agreements of Lender to make further extensions of credit under the Loan
Agreement.

    
      
        
        

         

      

         

        
          

        

      

      
         

      

    

    "Insolvency
Proceeding" means, with respect to any Obligor, an action, suit, case or
proceeding that is commenced by or against such Obligor for the appointment of a
receiver for such Obligor or any of such Obligor's property; for entry of an
order for relief under any chapter of the Bankruptcy Code with respect to such
Obligor; for an assignment for the benefit of creditors of such Obligor; or for
any debtor relief under any other insolvency law relating to adjustment of
debts, reorganization, composition or extension of debts owed by such
Obligor.

     

    "Loan Agreement" means
that certain Loan and Security Agreement dated September 26, 2002, among Lender
and Debtors, as at any time amended, restated, supplemented or otherwise
modified.

     

    "Loan Documents" means
the Loan Agreement and all other instruments or agreements now or hereafter
evidencing or securing the payment of any of the Senior Debt, in each case, as
at any time amended, restated, supplemented or otherwise modified.

     

    "Obligor" means each
Debtor and any other Person who is or may become liable for the whole or any
part of the Senior Debt.

     

    "Person" means any
individual, corporation, partnership, trust, joint venture, limited liability
company, other form of business organization, or governmental entity or
political subdivision.

     

    "Subordinated Debt"
means all loans, advances, debts, liabilities, debit balances, covenants and
duties at any time or times owed by any Debtor to Subordinate Creditor, whether
direct or indirect, absolute or contingent, secured or unsecured, primary or
secondary, joint or several, liquidated or unliquidated, due or to become due,
now existing or hereafter arising, including (i) all debt, liabilities and
obligations of SMF to Subordinate Creditor under the Subordinated Note, (ii) all
debts, liabilities or obligations that are incurred by any Debtor to Subordinate
Creditor in any Insolvency Proceeding, (iii) all debts, liabilities or
obligations at any time owed by any Debtor to any other Person which Subordinate
Creditor may have obtained by assignment, pledge, purchase or otherwise, (iv)
all interest, fees, charges, expenses and attorneys' fees for which any Debtor
is now or hereafter becomes liable to pay to Subordinate Creditor under any
agreement or by law, and (v) any renewals, extensions or refinancings of any of
the foregoing.

     

    "Subordinated Note"
means that certain Convertible Promissory Note dated June ____, 2009, made by
SMF to the order of Subordinate Creditor in the principal amount of
$____________, a true and correct copy of which is annexed hereto as Exhibit
A.

     

    "Senior Debt" means
all loans, advances, debts, liabilities, debit balances, covenants and duties at
any time or times owed by Debtors to Lender, whether direct or indirect,
absolute or contingent, secured or unsecured, primary or secondary, joint or
several, liquidated or unliquidated, due or to become due, now existing or
hereafter arising, including (i) all debts, liabilities and obligations now or
hereafter owing by Debtors to Lender under the Loan Agreement or any of the
other Loan Documents, (ii) all debts, liabilities or obligations owing by any
Debtor to others which Lender may have obtained by assignment, pledge, purchase
or otherwise, (iii) all loans made or credit extended by Lender to any Obligor
during the pendency of any Insolvency Proceeding of such Obligor, (iv) all
interest, fees, charges, expenses and attorneys' fees for which any Obligor is
now or hereafter becomes liable to pay to Lender under any agreement or by law
(including all interest, legal fees and other charges that accrue or are
incurred in connection with any of the Senior Debt during the pendency of any
bankruptcy case or other Insolvency Proceeding of any Obligor, whether or not
Lender is authorized by 11 U.S.C. § 506 or otherwise to claim or collect any
such interest, legal fees or other charges from such Obligor), and (v) any
renewals, extensions or refinancings of any of the foregoing.

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    (b)           All
references in this Agreement to any instruments or agreements, including the
Subordinated Note or any Loan Documents, shall mean and include all amendments,
restatements, or modifications thereto and all extensions or renewals thereof;
all references to any statutes shall include all amendments thereto and rules or
regulations promulgated pursuant thereto; all references to the word "including"
shall mean "including, without limitation"; and the words "herein," "hereof" and
"hereunder" and other words of similar import refer to this Agreement as a whole
and not to any particular section, paragraph or subdivision.  Any
pronouns used herein shall be deemed to cover all genders.

     

    2.           Subordination.

     

    (a)           Subject
to the provisions of Section 5 hereof
relating to payments on the Subordinated Debt that are permitted to be made to
the extent and under the circumstances set forth in Section 5,
Subordinate Creditor hereby postpones and subordinates all of the Subordinated
Debt to the Full Payment of all of the Senior Debt.  Without limiting
the generality of the foregoing, Lender shall be entitled to receive Full
Payment of all amounts due or to become due on or in respect of the Senior Debt
before Subordinate Creditor is entitled to receive any payment or distribution
of cash or other property on account of the Subordinated Debt.

     

    (b)           In
the event of any distribution, division or application, partial or complete,
voluntary or involuntary, by operation of law or otherwise, of all or any part
of the assets of any Obligor or the proceeds thereof to creditors of any Obligor
or upon any indebtedness of any Obligor, by reason of the liquidation,
dissolution or other winding up of such Obligor or such Obligor's business, or
in the event of any sale of any Obligor's assets outside the ordinary course of
business or the commencement by or against any Obligor of any Insolvency
Proceeding, then and in any such event any payment or distribution of any kind
or character, whether in cash, securities or other property, which shall be
payable or deliverable upon or with respect to any of the Subordinated Debt
(including any payment or distribution that may be payable or deliverable by
reason of the payment of any other indebtedness of any Obligor being subordinate
to the payment of the Subordinated Debt) shall be paid or delivered directly to
Lender for application to the Senior Debt (whether or not the same is then due
or payable) until Full Payment of all of the Senior Debt.  The
Subordinated Note shall at all times bear a conspicuous legend that the
Subordinated Debt evidenced thereby is subordinated to the Full Payment of the
Senior Debt pursuant to this Agreement.  Debtors' and Subordinate
Creditor's books shall be marked to evidence the subordination of all of the
Subordinated Debt to the Full Payment of the Senior Debt.  Lender is
authorized to examine such books from time to time and to make any notations
required by this Agreement.  The provisions of this Section  2
shall remain effective and binding upon Subordinate Creditor, to the full extent
of the Senior Debt, even if any of the Senior Debt is avoided, equitably
subordinated or nullified in any Insolvency Proceeding of an
Obligor.

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    3.           Warranties
and Representations of Debtor and Subordinate Creditor.  Each
Debtor and Subordinate Creditor hereby represent and warrant that: (a) it has
not relied nor will it rely on any representation or information of any nature
made by or received from Lender relative to any Debtor, any Debtor's financial
condition, or the existence, value or extent of any Collateral, in deciding to
execute this Agreement; (b) no part of the Subordinated Debt is evidenced by any
instrument or writing except the Subordinated Note; (c) Subordinate Creditor is
the lawful owner of the Subordinated Debt; (d) Subordinate Creditor has not
heretofore assigned or transferred any of the Subordinated Debt, any interest
therein or any Collateral or security pertaining  thereto; and (e)
Subordinate Creditor has not heretofore given any subordination in respect of
the Subordinated Debt.

     

    4.           Negative
Covenants.  For so long as this Agreement is in
effect:  (a) no Debtor shall, directly or indirectly, make any payment
(other than a payment expressly permitted by Section 5 hereof) on
account of, repurchase, redeem or otherwise retire or grant a security interest
in, mortgage, pledge, assign or transfer any properties to secure or satisfy all
or any part of the Subordinated Debt; (b) Subordinate Creditor shall not demand,
collect or accept from any Obligor or any other Person any payment (other than a
payment permitted by Section 5 hereof) or
security on account of the Subordinated Debt or any part thereof, or accelerate
the maturity of the Subordinated Debt or realize upon or enforce any security
pledged by any Person as collateral for any of the Subordinated Debt; (c)
Subordinate Creditor shall not exchange, set off, release, otherwise discharge
any part of the Subordinated Debt, provided, however, that nothing herein shall
be construed to limit the rights of Subordinate Creditor to convert the
Subordinate Debt to Debtor’s Common Stock in accordance with the terms of the
Subordinate Debt; (d) Subordinate Creditor shall not give any subordination in
respect of the Subordinated Debt or sell, transfer, assign or grant a security
interest or participation in any of the Subordinated Debt to any Person other
than Lender without prior written notice to Lender and the execution by the
recipient of a subordination agreement substantially identical to this
Agreement, in form and substance reasonably satisfactory to Lender; (e) no
Debtor shall hereafter issue any instrument, security or other writing
evidencing any part of the Subordinated Debt, and Subordinate Creditor will not
receive any such writing, except upon the prior written approval of Lender or at
the request of and in the manner requested by Lender; (f) Debtors and
Subordinate Creditor shall not amend, alter or modify any provision of the
Subordinated Note or otherwise shorten the maturity of any of the Subordinated
Debt without the prior written consent of Lender; (g) Subordinate Creditor shall
not commence or join with any other creditors of an Obligor in commencing any
Insolvency Proceeding against such Obligor; and (h)  neither any
Debtor nor Subordinate Creditor otherwise shall take or permit any action
prejudicial to or inconsistent with Lender's priority position over Subordinate
Creditor that is created by this Agreement.

     

    5.           Permitted
Payments.

     

    (a)           Except
as otherwise provided in Section 5(b), SMF may
pay to Subordinate Creditor, and Subordinate Creditor may accept and retain, any
regularly scheduled installments of interest due and owing to Subordinate
Creditor from SMF under
the Subordinated Note in accordance with its present tenor, but without
prepayment (whether mandatory or optional) or payment upon
acceleration.

     

    (b)           SMF
shall not be permitted to make, nor shall Subordinate Creditor be permitted to
accept or retain, any payments with respect to any Subordinated Debt (whether
constituting payments of principal, interest, fees or other charges) if any
Default or Event of Default exists at the time of or would result from such
payment.

     

    In no
event shall Lender's continuing to honor any requests of Obligors for loans
under the Loan Agreement after the occurrence or existence of any Default or
Event of Default be deemed a waiver thereof, unless such Default or Event of
Default is expressly waived in writing by Lender.

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    6.           Turnover
of Prohibited Transfers.  If any payment, distribution or
security, or the proceeds thereof, are received by Subordinate Creditor on
account of or with respect to any of the Subordinated Debt other than as
expressly permitted in Section 5 hereof,
Subordinate Creditor shall forthwith deliver same to Lender in the form received
(except for the addition of any endorsement or assignment necessary to effect a
transfer of all rights therein to Lender) for application to the Senior Debt or,
at Lender's option, Subordinate Creditor shall pay to Lender the amount thereof
on
demand.  Lender is irrevocably authorized to supply any
required endorsement or assignment which may have been omitted.  Until
so delivered, any such payment, distribution or security shall be held by
Subordinate Creditor in trust for Lender and shall not be commingled with other
funds or property of Subordinate Creditor.  It
shall not be a defense to any obligation of Subordinated Creditor to return,
disgorge or otherwise pay to Lender the amount of any payment received by
Subordinate Creditor with respect to the Subordinated Debt pursuant to this
Section 6 that
Subordinate Creditor did not have notice or knowledge, at the time of its
receipt of any such payment, that such payment was not permitted to be made or
retained pursuant to the provisions of Section 5
hereof.

     

    7.           Authority
to Act for Subordinate Creditor.  Until Full Payment of the
Senior Debt, Lender shall have the right to act as Subordinate Creditor's
attorney-in-fact for the purposes specified in this Section and Subordinate
Creditor hereby irrevocably appoints Lender as Subordinate Creditor's true and
lawful attorney, with full power of substitution, in the name of Subordinate
Creditor or in the name of Lender, for the use and benefit of Lender, without
notice to Subordinate Creditor or any of Subordinate Creditor's representatives,
successors or assigns, to perform the following acts, at Lender's option, at any
meeting of creditors of an Obligor or in connection with any Insolvency
Proceeding:

     

    (a)           to
enforce claims comprising the Subordinated Debt, either in its own name or in
the name of Subordinate Creditor, by proof of debt, proof of claim, suit or
otherwise;

     

    (b)           to
collect any assets of an Obligor distributed, divided or applied by way of
dividend or payment, or any securities issued, on account of the Subordinated
Debt and to apply the same, or the proceeds of any realization upon the same
that Lender in its discretion elects to effect, to the Senior Debt until Full
Payment of all of the Senior Debt (including all interest accruing on the Senior
Debt after the commencement of any Insolvency Proceeding), rendering any surplus
to Subordinate Creditor if and to the extent permitted by law;

     

    (c)           to
vote claims comprising the Subordinated Debt to accept or reject any plan of
partial or complete liquidation, reorganization, arrangement, composition or
extension; and

     

    (d)           to
take generally any action in connection with any such Insolvency Proceeding that
Subordinate Creditor would be authorized to take but for this
Agreement.

     

    In no
event shall Lender be liable to Subordinate Creditor for any failure to prove
the Subordinated Debt, to exercise any right with respect thereto or to collect
any sums payable thereon.

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    8.           Certain
Waivers and Consents.  Each Debtor and Subordinate Creditor
hereby waive any defense based on the adequacy of a remedy at law which might be
asserted as a bar to the remedy of specific performance of this Agreement in any
action brought therefor by Lender.  To the fullest extent permitted by
law, Debtors and Subordinate Creditor each hereby further waives:  (i)
presentment, demand, protest, notice of protest, notice of default or dishonor,
notice of payment or nonpayment and any and all other notices and demands of any
kind in connection with all negotiable instruments evidencing all or any portion
of the Senior Debt or the Subordinated Debt to which any Debtor or Subordinate
Creditor may be a party; (ii) the right to require Lender to marshal any
securities, or to enforce any security interest or lien that Lender may now or
hereafter have in any Collateral securing the Senior Debt or to pursue any claim
it may have against any Obligor, as a condition to Lender's entitlement to
receive any payment on account of the Subordinated Debt; (iii) notice of the
acceptance of this Agreement by Lender; (iv) notice of any loans made under,
extensions granted, amendments to the Loan Agreement or the other Loan
Documents, other action taken by Lender in reliance hereon or the existence of
any Default or Event of Default; and (v) all other demands and notices of every
kind in connection with this Agreement, the Senior Debt or the Subordinated
Debt.  Subordinate Creditor acknowledges, understands and agrees that
it will not be authorized to rely upon Lender to provide Subordinate Creditor
with any information concerning the financial condition or business prospects of
any Debtor, the existence, quantity or value of any of the Collateral, the
status of any Debtor's loan relationship with Lender under any of the Loan
Documents, the existence or non-existence of any Default or Event of Default or
any other matter arising out of or related to any of the Loan Documents, and
Subordinate Creditor alone shall be responsible for obtaining from Debtor all
information concerning the foregoing.  Subordinate Creditor hereby
consents and agrees that Lender may, without in any manner impairing, releasing
or otherwise affecting the subordination provided for in this Agreement or any
of Lender's rights hereunder and without prior notice to or the consent of
Subordinate Creditor: (i) release, renew, extend, compromise, postpone the time
of payment of or forbear from collecting any of the Senior Debt; (ii)
substitute, exchange or release any or all of the Collateral or decline or
neglect to perfect or enforce Lender's security interest in any of the
Collateral; (iii) add or release any Person primarily or secondarily liable for
any of the Senior Debt; (iv) amend, modify, renew or extend any of the Loan
Documents or waive or grant forbearances with respect to any Event of Default
thereunder; and (v) increase or decrease the amount of the Senior Debt or the
rate of interest or the amount or time of payment of any other fees or charges
payable in connection therewith; (vi) elect in any case under the Bankruptcy
Code for the application of Section 1111(b)(2) of the Bankruptcy Code; and (vii)
consent to the use of any cash collateral or any borrowing or grant of a
security interest under Section 364 of the Bankruptcy Code.

     

    9.           Subrogation.  Provided
that Full Payment of the Senior Debt has occurred, Subordinate Creditor shall be
subrogated (without any representation by or recourse to Lender) to the rights
of Lender to receive payments or distributions of cash, property or securities
payable or distributable on account of the Senior Debt, to the extent of all
payments and distributions paid over to or for the benefit of Lender pursuant to
this Agreement on account of the Subordinated Debt.  In no event,
however, shall Subordinate Creditor have any rights or claims against Lender for
any alleged impairment of Subordinate Creditor's subrogation rights, Subordinate
Creditor acknowledging that any actions taken by Lender with respect to the
Senior Debt or the Collateral are authorized and consented to by Subordinate
Creditor.

     

    10.           Statement
of Account.  Each Debtor and Subordinate Creditor hereby agree
to render to Lender from time to time upon Lender's request therefor a statement
of Debtors' account with Subordinate Creditor and to afford Lender access to the
books and records of Subordinate Creditor and Debtors in order that Lender may
make a full examination of the state of accounts of Debtors with Subordinate
Creditor.

     

    11.           Validity
of Subordinated Debt.  The provisions of this Agreement
subordinating the Subordinated Debt are solely for the purpose of defining the
relative rights of Lender and Subordinate Creditor and shall not impair, as
between Subordinate Creditor and SMF, the obligation of SMF, which is
unconditional and absolute, to pay the Subordinated Debt in accordance with its
terms except as payment thereof may be postponed in accordance with this
Agreement.

     

    12.           Indulgences
Not Waivers.  Neither the failure nor any delay on the part of
Lender to exercise any right, remedy, power or privilege hereunder shall operate
as a waiver thereof or give rise to an estoppel, nor be construed as an
agreement to modify the terms of this Agreement, nor shall any single or partial
exercise of any right, remedy, power or privilege with respect to any occurrence
be construed as a waiver of such right, remedy, power or privilege with respect
to any other occurrence.  No waiver by a party hereunder shall be
effective unless it is in writing and signed by the party making such waiver,
and then only to the extent specifically stated in such
writing.

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    13.           Duration.  This
Agreement shall become effective when executed by Debtors and Subordinate
Creditor and accepted by Lender, and, when so accepted, shall constitute a
continuing agreement of subordination, and shall remain in effect until Full
Payment of all of the Senior Debt and all instruments and agreements at any time
evidencing or securing the whole or any part of the Senior Debt, including the
Loan Agreement, have been terminated in accordance with their
terms.  Lender may, without notice to Subordinate Creditor, extend or
continue credit and make other financial accommodations to or for the account of
Debtor in reliance upon this Agreement.  The provisions of this
Agreement shall continue to be effective or be reinstated, as the case may be,
if at any time payment of any Senior Debt is rescinded or otherwise must be
returned by Lender upon or in connection with any Insolvency Proceeding or
otherwise, all as if any such payment had not been made.

     

    14.           Default
and Enforcement.  Subordinate Creditor shall give written
notice to Lender of any default or event of default with respect to the
Subordinated Debt, promptly after having obtained knowledge of the occurrence or
existence of any such default or event of default.  If an Event of
Default shall occur or exist, all of the Senior Debt shall, at the option of
Lender, become immediately due and payable without presentment, demand, protest,
or notice of any kind, notwithstanding any time or credit otherwise
allowed.  At any time Subordinate Creditor fails to comply with any
provision of this Agreement that is applicable to Subordinate Creditor, Lender
may demand specific performance of this Agreement, whether or not Debtors have
complied with this Agreement, and may exercise any other remedy available at law
or equity.  Without limiting the generality of the foregoing, if
Subordinate Creditor, in violation of this Agreement, shall institute or
participate in any action, suit or proceeding against any Obligor, Debtors may
interpose as a defense or dilatory plea this Agreement and Lender is irrevocably
authorized to intervene and to interpose such defense or plea in its or any
Debtor's name.  If Subordinate Creditor attempts to enforce or realize
upon any security for the Subordinated Debt in violation of this Agreement, any
Debtor or Lender (in any Debtor's or Lender's name) may by virtue of this
Agreement restrain such realization or enforcement.

     

    15.           Litigation;
Jurisdiction and Venue.  Subordinate Creditor and Debtor each
hereby irrevocably consents to the jurisdiction of the courts of the State of
Florida and of any federal court located in the State of Florida, in connection
with any action or proceeding arising out of or relating to this
Agreement.  In any such litigation, Subordinate Creditor and Debtor
each waives personal service of any summons, complaint or other process, and
agrees that the service thereof may be made by certified or registered mail
direct to Subordinate Creditor and Debtors at their respective places of
business set forth in Section
16 hereof.  In
the alternative, in its sole discretion, Lender may effect service upon either
Subordinate Creditor or any Debtor in any other form or manner permitted by
law.  The choice of forum set forth herein shall not be deemed to
preclude the enforcement of any judgment obtained in such forum or the taking of
any action under this Agreement to enforce the same in any appropriate
jurisdiction, or the commencement by Lender, in its sole discretion, of any
action or suit in any jurisdiction where any Collateral may be found to
repossess or foreclose upon any such Collateral.

     

    16.           Notices.  All
notices, requests, demands and other communications required or permitted under
this Agreement or by law shall be in writing and shall be deemed to have been
duly given, made and received when delivered against receipt, or when received
by telecopy at the office of the noticed party or on the third Business Day
after deposit in the United States mails, postage prepaid, addressed as set
forth below:

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	 
      	
                                  (a)

                                	
                                  If to Lender:

                                	
                                  Wachovia
      Bank, National Association

                                
	 
      	 
      	 
      	
                                  110
      East Broward Blvd., Suite 2050

                                
	 
      	 
      	 
      	
                                  Miami,
      Florida 33301

                                
	 
      	 
      	 
      	
                                  Attention:
      Portfolio Manager

                                
	 
      	 
      	 
      	
                                  Facsimile:
      (954) 467-5520

                                
	 
      	 
      	 
      	 
      
	 
      	
                                  (b)

                                	
                                  If to Subordinate Creditor:

                                
	 
      	 
      	 
      	 
      
	 
      	
                                  (c)

                                	
                                  If to any Debtor:

                                	
                                  SMF
      Energy Corporation

                                
	 
      	 
      	 
      	
                                  H
      & W Petroleum Company, Inc.

                                
	 
      	 
      	 
      	
                                  SMF
      Services, Inc.

                                
	 
      	 
      	 
      	
                                  200
      West Cypress Creek Road, Suite 400

                                
	 
      	 
      	 
      	
                                  Fort
      Lauderdale, Florida 33309

                                
	 
      	 
      	 
      	
                                  Attention:
      Richard E. Gathright, President

                                
	 
      	 
      	 
      	
                                  Facsimile:
      __________________________

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    Any
addressee may alter the address to which communications are to be sent by giving
notice of such change of address in conformity with the provisions of this
Section for the giving of notice.  Notice given in any other manner
shall nevertheless be effective as to the noticed party on the date actually
received by such noticed party.

     

    17.           Lender's
Duties Limited.  The rights granted to Lender in this Agreement
are solely for its protection and nothing herein contained imposes on Lender any
duties with respect to any property either of an Obligor or of Subordinate
Creditor heretofore or hereafter received by Lender beyond reasonable care in
the custody and preservation of such property while in Lender's actual
possession.  Lender has no duty to preserve rights against prior
parties on any instrument or chattel paper received from Debtor or Subordinate
Creditor as collateral security for the Senior Debt or any portion
thereof.

     

    18.           Amendments
to Loan Documents.  Whether or not any Debtor has agreed with
Subordinate Creditor not to enter into any amendments to the Loan Documents
without notice to or the consent of Subordinate Creditor, Debtors and Lender may
amend or modify the Loan Documents at any time and in any manner and such
amendments or modifications shall be effective notwithstanding Debtors' failure
to give notice thereof to Subordinate Creditor or to obtain Subordinate
Creditor's consent thereto, and Subordinate Creditor shall have no claim or
cause of action against Lender by reason of Debtors' failure to give such notice
or obtain such consent even if Lender is aware of such failure.

     

    19.           Authority.  Each
Debtor and Subordinate Creditor each represents and warrants that it has
authority to enter into this Agreement and that the Person signing for them is
authorized and directed to do so.

     

    20.           Entire
Agreement.  This Agreement constitutes and expresses the entire
understanding among the parties hereto with respect to the subject matter
hereof, and supersedes all prior agreements and understandings, inducements or
conditions, whether express or implied, oral or written.  If and to
the extent the terms hereof are inconsistent with any subordination provisions
contained in the Subordinated Note, the terms of this Agreement shall govern and
control. Neither
this Agreement nor any portion or provision hereof may be changed, waived or
amended orally or in any manner other than by an agreement in writing signed by
Lender, Debtors and Subordinate Creditor.

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    21.           Additional
Documentation.  Debtors and Subordinate Creditor shall execute
and deliver to Lender such further instruments and shall take such further
action as Lender may at any time or times reasonably request in order to carry
out the provisions and intent of this Agreement.

     

    22.           Expenses.  Debtors
jointly and severally agree to pay Lender, on demand, all expenses of every
kind, including reasonable attorneys' fees, that Lender may incur in enforcing
any of Lender's rights under this Agreement.

     

    23.           Successors
and Assigns.  This Agreement shall inure to the benefit of
Lender and its successors and assigns, and shall be binding upon each Debtor and
Subordinate Creditor and their respective successors and
assigns.  Without limiting the generality of the foregoing sentence,
any Person whose loans or advances to any Debtor hereafter are used to refinance
and pay indefeasibly in full the Senior Debt shall be deemed (unless otherwise
elected by such Person) for all purposes hereof to be the successor to Lender,
and from and after the date of any such refinancing and satisfaction in full of
the Senior Debt such Person shall be deemed (unless otherwise elected by such
Person) a party hereto in the place and stead of Lender as if such Person had
been the original signatory hereto, and all loans, advances, liabilities, debit
balances, covenants and duties at any time or times owed by any Debtor to such
successor to Lender, whether direct or indirect, absolute or contingent, secured
or unsecured, due or to become due, then existing or thereafter arising,
including any renewals, extensions, modifications, or replacements of any of the
foregoing, shall be deemed (unless otherwise elected by such Person) for all
purposes hereunder to constitute and be Senior Debt.  The term
"Debtor" and "Subordinate Creditor" as used in this Agreement shall include the
individuals, firms or corporations named herein as Debtor or Subordinate
Creditor and (a) any successor individual, firm or corporation to which all or
substantially all of the business or assets of either of them shall have been
transferred; (b) in the case of a partnership, any new partnership which shall
have been created by reason of the admission of any new partner therein or the
dissolution of the then existing partnership; and (c) in the case of a
corporation, any other corporation into or with which any corporate Debtor or
corporate Subordinate Creditor shall have been merged, consolidated, reorganized
or absorbed.

     

    24.           Defects
Waived.  This Agreement is effective notwithstanding any defect
in the validity or enforceability of any instrument or document at any time
evidencing or securing the whole or any part of the Senior Debt.

     

    25.           Governing
Law.  The validity, construction and enforcement of this
Agreement shall be governed by the internal laws of the State of
Florida.

     

    26.           Severability.  The
provisions of this Agreement are independent of and separable from each
other.  If any provision hereof shall for any reason be held invalid
or unenforceable, it is the intent of the parties that such invalidity or
unenforceability shall not affect the validity or enforceability of any other
provision hereof, and that this Agreement shall be construed as if such invalid
or unenforceable provision had never been contained herein.

     

    27.           Execution
in Counterparts; Telecopied Signatures.  This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be
deemed to be an original and all of which counterparts taken together shall
constitute but one and the same instrument.  In proving this Agreement
in any judicial proceeding, it shall not be necessary to produce or account for
more than one such counterpart signed by the party against whom such enforcement
is sought.  Any signatures delivered by a party by facsimile
transmission shall be deemed an original signature hereto.

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    [Remainder
of page intentionally left blank;

    signatures
begin on following page.]

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    28.           Jury
Trial Waiver.  In the event of any
litigation with respect to any matter concerned with this Agreement or the
Senior Debt, Subordinate Creditor, Debtors and Lender each hereby waives all
rights to a trial by jury.

     

    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed,
sealed and delivered on the day and year first above written.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	 
      	
                                              SUBORDINATE CREDITOR:

                                            
	 
      	 
      	 
      
	 
      	 
      
	 
      	 
      	 
      
	 
      	
                                              By:

                                            	
                                                

                                            
	 
      	
                                              Name:

                                            	
                                                

                                            
	 
      	
                                              Title:

                                            	
                                                

                                            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                                              DEBTORS:

                                            
	 
      	 
      	 
      
	 
      	
                                              SMF
      ENERGY CORPORATION

                                            
	 
      	 
      	 
      
	 
      	
                                              By:

                                            	
                                                

                                            
	 
      	
                                              Name:

                                            	
                                                

                                            
	 
      	
                                              Title:

                                            	
                                                

                                            
	 
      	 
      	 
      
	 
      	
                                              H
      & W PETROLEUM COMPANY, INC.

                                            
	 
      	 
      	 
      
	 
      	
                                              By:

                                            	
                                                

                                            
	 
      	
                                              Name:

                                            	
                                                

                                            
	 
      	
                                              Title:

                                            	
                                                

                                            
	 
      	 
      	 
      
	 
      	
                                              SMF
      SERVICES, INC.

                                            
	 
      	 
      	 
      
	 
      	
                                              By:

                                            	
                                                

                                            
	 
      	
                                              Name:

                                            	
                                                

                                            
	 
      	
                                              Title:

                                            	
                                                

                                            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                                              LENDER:

                                            
	 
      	 
      	 
      
	 
      	
                                              WACHOVIA
      BANK, NATIONAL ASSOCIATION

                                            
	 
      	 
      	 
      
	 
      	
                                              By:

                                            	
                                                

                                            
	 
      	
                                              Name:

                                            	
                                                

                                            
	 
      	
                                              Title:

                                            	
                                                

                                            

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

Debt Subordination
Agreement

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