Document:

STEIN MART, INC.
                             EXECUTIVE DEFERRAL PLAN

                                    ARTICLE I
                              ESTABLISHMENT OF PLAN

     1.01 Background of Plan. Stein Mart, Inc. hereby establishes,  effective as
          of September 1, 1999, a deferred  compensation plan known as the Stein
          Mart,  Inc.  Executive  Deferral  Plan. The Plan will be effective for
          Compensation payable on or after September 1, 1999.

     1.02 Purpose. The Company desires to recognize the valuable contribution of
          certain  selected  executives by providing this Deferral  Plan,  under
          which  participants  may voluntarily  defer  compensation,  which, the
          Company will partially match.

     1.03 Status of Plan.  The Plan is intended to be a  nonqualified,  unfunded
          plan of deferred compensation under the Internal Revenue Code of 1986,
          as amended  ("Code").  Although the plan is unfunded for tax purposes,
          the Company may  establish a trust under  Revenue  Procedure  92-64 to
          provide benefits under the Plan. (See Section 1.04).

     1.04 Establishment  of Trust.  As noted in Section  1.03,  the  Company may
          establish a "rabbi" trust to provide for the payment of benefits under
          the terms of the Plan  ("Trust").  It is  intended  that a transfer of
          assets into the Trust will not  generate  taxable  income (for federal
          income  tax  purposes)  to the  Participants  until  such  assets  are
          actually distributed or otherwise made available to the Participants.

                                    ARTICLE 2
                                   DEFINITIONS

     2.01 Definitions. Certain terms of the Plan have defined meanings set forth
          in this  Article  and which shall  govern  unless the context in which
          they are used clearly indicates that some other meaning is intended.

          Beneficiary.  Any person or persons  designated by a  Participant,  in
          accordance  with  procedures  established  by the  Committee  or  Plan
          Administrator,  to  receive  benefits  hereunder  in the  event of the
          Participant's  death.  If any  Participant  shall fail to  designate a
          Beneficiary or shall designate a Beneficiary who shall fail to survive
          the Participant,  the Beneficiary shall be the Participant's surviving
          spouse,  or, if none, the  Participant's  surviving  descendants  (who
          shall take per stirpes) and if there are no surviving descendants, the
          Beneficiary shall be the Participant's estate.

          Board. The Board of Directors of the Company.

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         Change in Control. As defined in Section 9.03.

         Committee. The Compensation Committee of the Board.

         Company.  Stein Mart, Inc. and its  subsidiaries  and affiliates which
         choose to participate in the Plan, and their corporate successors.

         Company Matching Contribution.  The matching contributions made by the
         Company to Participants'  Deferral Accounts in accordance with Section
         5.03.

         Compensation. The total salary and cash bonus payable by the Company to
         a Participant for services to the Company or any of its affiliates,  as
         such amount may be changed from time to time.

         Deferral  Account.  The  account  established  by the  Company for each
         Participant for Compensation  deferred pursuant to the Plan and Company
         Matching  Contributions which account shall be credited or debited with
         interest,  earnings  and  changes  in value in the  investment  indexes
         chosen by the  Participant as the value  measurements  for the Deferral
         Account.  The  maintenance  of  individual  Deferral  Accounts  is  for
         bookkeeping purposes only.

         Disability.  Total and permanent  disability  as  determined  under the
         Company's long term disability program,  whether or not the Participant
         is covered  under such  program.  If no such program is in effect,  the
         Disability  of a  Participant  shall be determined in good faith by the
         Board.

         Effective Date. The Plan will be effective for Compensation payable on
         or after September 1, 1999.

         Election  Form. A form,  substantially  in the form attached  hereto as
         Exhibit A, pursuant to which a Participant elects to defer Compensation
         under the Plan.

         Election Date. The date  established by the Plan as the date by which a
         Participant must submit a valid Election Form to the Plan Administrator
         in order to  participate  in the Plan for a Plan  Year.  For each  Plan
         Year,  the  Election  Date is December 31 of the  preceding  Plan Year,
         except that,  employees becoming newly eligible may elect within thirty
         (30) days after  eligibility  for the Plan to defer  Compensation to be
         earned for  services  performed  in the  balance of the year  remaining
         after the deferral is made.

         Participant.  Any Selected Executive who has elected to participate in
         the Plan.

         Plan.  The Stein Mart,  Inc.  Executive  Deferral Plan as set forth in
         this document together with any subsequent amendments hereto.

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         Plan  Administrator.  The  Committee or its delegee of  administrative
         duties under the Plan pursuant to Section 3.02.

         Plan Fiduciary. The Fiduciary of this Plan shall be the Committee.

         Plan Year. The Plan Year shall be the twelve-month  period from January
         1 of each year though December 31 of that year.

         Retirement.  Retirement  shall mean the first day of the month in which
         the Participant  ceases employment with the Company and such retirement
         is either on or after the Participant's attainment of age 62.

         Selected  Executive.  With respect to a Plan Year, a highly compensated
         and/or management  employee of the Company or any of its affiliates who
         has been selected by the Committee to be an eligible participant in the
         Plan for such Plan Year.

         Termination of Employment.  A Termination of Employment  occurs when a
         Participant  ceases for any reason to be an employee of the Company or
         any of its affiliates.

                                    ARTICLE 3
                           ADMIN1STRATION OF THE PLAN

3.01     Administrator of the Plan. The Plan shall be administered by the
         Committee.

3.02     Authority  of  Committee.  The  Committee  shall  have  full  power and
         authority  to: (i) interpret and construe the Plan and adopt such rules
         and  regulations  as it shall deem necessary and advisable to implement
         and  administer  the Plan,  (ii)  determine the benefits of the Plan to
         which any  Participant,  Beneficiary  or other  person may be entitled,
         (iii) keep records of all acts and  determinations of the Committee and
         Plan  Administrator,  and to keep all such records,  books of accounts,
         data  and  other   documents  as  may  be  necessary   for  the  proper
         administration  of  the  Plan,  (iv)  prepare  and  distribute  to  all
         Participants  and  Beneficiaries  information  concerning  the Plan and
         their rights under the Plan, (v) do all things necessary to operate and
         administer  the  Plan in  accordance  with  its  provisions,  and  (iv)
         designate  persons  other than members of the Committee or the Board to
         carry  out  its   responsibilities,   subject   to  such   limitations,
         restrictions  and  conditions  as it may  prescribe.  The Committee may
         delegate  administrative duties under the Plan to one or more agents as
         it shall deem necessary or advisable.

3.03     Effect of Committee  Determinations.  No member of the Committee or the
         Board or the Plan  Administrator  shall be  personally  liable  for any
         action or determination  made in good faith with respect to the Plan or
         to any settlement of any dispute between a Participant and the Company.
         Any decision or action taken by the Committee or the Board with respect
         to the administration or interpretation of the Plan shall be conclusive
         and binding upon all persons.

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                                    ARTICLE 4
                                  PARTICIPATION

4.01     Election to  Participate.  Each  Selected  Executive  is  automatically
         eligible to participate  in the Plan. He or she may  participate in the
         Plan by delivering a properly completed and signed Election Form to the
         Plan  Administrator  on or before the Election Date. The  Participant's
         participation  in the Plan will be effective as of the first day of the
         Plan  Year  beginning  after  the  Plan   Administrator   receives  the
         Participant's  Election  Form,  or, in the case of the first Plan Year,
         September 1, 1999. A  Participant  shall not be entitled to any benefit
         hereunder  unless such  Participant has properly  completed an Election
         Form and deferred the receipt of Compensation pursuant to the Plan.

4.02     Voluntary-Termination  of Election Form. A Participant  may terminate
         his or her  Election  Form  at  any  time.  Such  termination  will  be
         effective  on  the  first  day  of  the  calendar   quarter  after  the
         Participant  notifies  the  Plan  Administrator  of  the  Participant's
         termination  of the Election  Form. If a Participant  terminates his or
         her Election Form, the Participant may not activate a new Election Form
         to defer  Compensation  for the remainder of the Plan Year in which the
         Participant's  former  Election Form was terminated.  Any  Compensation
         deferred  prior to the  termination  of the Election  Form shall remain
         subject to the original  Election  Form and the Plan.  On or before the
         Election Date for the  following  Plan Year or of any  subsequent  Plan
         Year, the Participant may deliver a new Election Form and thereby defer
         the receipt of any future Compensation. Such new Election Form shall be
         effective only for Compensation applicable to the Participant's service
         after the first day of the Plan Year following the Plan Administrator's
         receipt of the Participant's new Election Form.

4.03     Continuation of Election Form.  Prior to the  commencement of each Plan
         Year, a Participant  shall have the right,  by executing and delivering
         to the Plan Administrator a new Election Form, to modify the percentage
         of his or her  Compensation  which is deferred  under the Plan.  If the
         Participant  fails  to  deliver  a  new  Election  Form  prior  to  the
         commencement of the new Plan Year, the  Participant's  Election Form in
         effect  during the previous  Plan Year shall  continue in effect during
         the new Plan Year.

4.04     Automatic Termination of Election Form. A Participant's  Election
         Form  will   automatically   terminate  at  the  earlier  of  (i)  the
         Participant's  Termination of Employment,  or (ii) the  termination of
         the Plan.

4.05     No Implied Rights,  Effect on Other Benefits.  Nothing contained in the
         Plan  shall be  deemed  to give any  Selected  Executive  the  right to
         continue in such  status or to remain as an  employee  of the  Company.
         Except as  otherwise  required  by  applicable  law,  the  Compensation
         deferred by a Participant shall be included in the Participant's annual
         compensation  for  calculating  the  Participant's  bonuses and awards,
         insurance and other employee  benefits,  except that in accordance with
         the  terms  of any  plan  qualified  under  Section  401  of  the  Code
         maintained by the Company, the amount deferred shall not be included as
         calendar year compensation in calculating the Participant's benefits or
         contributions  by or on behalf of the  Participant  under  such plan or
         plans.  Benefits under the Plan shall be excluded from  compensation in
         years paid for  purposes of  calculating  a  Participant's  bonuses and
         awards, insurance and other employee benefits.

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                                    ARTICLE 5
                                 PLAN BENEFIT'S

5.01     Deferred  Compensation.  A Participant may elect to defer up to 100% of
         his or her  Compensation  to his or her Deferral  Account in accordance
         with the terms of the Plan and the Election  Form;  provided,  however,
         that the Company Matching Contribution shall apply only with respect to
         deferrals of up to 10% of the employee's basic salary and 10% of his or
         her bonus.  For bookkeeping  purposes,  the amount of the  Compensation
         which the  Participant  elects to defer  pursuant  to the Plan shall be
         transferred to and held in individual Deferral Accounts.

5.02     Time of  Election  of  Deferral.  A  Participant  who  wishes  to defer
         Compensation  for a Plan  Year  must  irrevocably  elect to do so on or
         prior to the Election  Date for such Plan Year,  by  delivering a valid
         Election  Form to the  Plan  Administrator.  The  Election  Form  shall
         indicate the percentage of  Compensation  (with a minimum of $5,000) to
         be credited to the Participant's Deferral Account.

5.03     Company  Matching  Contributions.   For  each  dollar  ($1.00)  that  a
         Participant  defers  into  his or her  Deferral  Account  (up to 10% of
         salary and 10% of bonus), the Company will make a matching contribution
         of one dollar ($1.00). Company Matching Contributions will be paid into
         the  Participant's  Deferral  Account and will earn in accordance  with
         Section 5.04.  The Board may change the amount of the Company  Matching
         Contributions  for any  future  Plan Year by giving  written  notice to
         eligible  Participants  prior to the Election  Date for such Plan Year.
         Any such change will be prospective only.

5.04     Deferral Account.

         (a)  Deferral  Account.   Amounts  in  a  Participant's  Deferral
              Account will be credited or debited with interest,  earnings
              and changes in value in the investment indexes chosen by the
              Participant  as the  value  measurements  for  the  Deferral
              Account as of the dates on which  Compensation  is deposited
              into the Deferral  Account (or such other day as  determined
              by the Plan  Administrator).  The  Participant  shall choose
              from  among the  financial  pools  offered  in  Schedule  B,
              attached  hereto,  the  investment  indexes  from  which  to
              determine the value of his or her Deferral  Account with the
              result that the Deferral  Account  shall be valued as if the
              Participant's  deferrals  had actually  been invested in the
              pools chosen by the  Participant.  A Participant  may change
              his or her investment index choices  quarterly by submitting
              a new  election  form before the  beginning  of the calendar
              quarter for which the change is to be effective.

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         (b)  Sub-Accounts.   To  the  extent   required  for  bookkeeping
              purposes,   a   Participant's   Deferral   Account  will  be
              subdivided   to   reflect   deferred   Compensation   on   a
              year-by-year basis. For example, a 1999 Sub-Account,  a 2000
              Sub-Account, and so on.

         (c)  Reports.   Participants  will  be  provided  with  quarterly
              reports as to the status of their

5.05     Vesting.  Vesting refers to a Participant's ability to receive benefits
         upon Termination of Employment.  Participants are always 100% vested in
         their Deferral  Accounts other than Company Matching  Contributions and
         earnings thereon.  Company Matching  Contributions and interest thereon
         become vested in accordance with the following schedule:

          Years since first                   Vested % of Company Matching
          deferral under the Plan             Contributions and earnings thereon
         ---------------------------          ----------------------------------
            Less than 4 Years                               0%

            4 Years                                        20%

            5 Years                                        40%

            6 Years                                        60%

            7 Years                                        80%

            8 Years                                       100%

            Earlier death or Disability                   100%
            of Participant

            A successor to the Company terminates         100%
            the Plan

            A successor to the Company  terminates        100%
            the employment of Participant without
            cause within 24 months of a Change
            in Control

            Retirement, as defined herein                 100%

5.06     Form of Payment.

         (a)  Payment Date. Payment of Plan benefits shall commence on the
              earliest of (i) the Participant's Termination of Employment,
              (ii) the  Participant's  death,  or (iii) the  Participant's
              Disability.  The termination of a Participant's  status as a
              Selected   Executive   will  not,   absent   Termination  of
              Employment,  cause a payout of such  Participant's  Deferral
              Account,  and such person may continue to defer Compensation
              into the Plan, but no Company Matching Contributions will be
              made  on  Compensation  deferred  while  he or  she is not a
              Selected Executive. Earnings will continue to accrue on such
              person's Deferral Account as provided in Section 5.04.
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         (b)  Method of Distribution.  Upon a Participant's Termination of
              Employment  which is not also a Retirement,  distribution of
              vested amounts from a Participant's  Deferral  Account shall
              be paid to the  Participant  in a lump sum to a  maximum  of
              $100,000   with  the  balance   paid  in  as  many  as  five
              approximately  equal annual  installments.  The distribution
              shall be valued as of the quarter end immediately  following
              the  Termination of Employment.  The  distribution(s)  shall
              commence as soon as practicable  after the generation of the
              report contemplated in Section 5.04(c). Upon a Participant's
              Termination  of  Employment  which  is  also  a  Retirement,
              distribution of vested amounts from a Participant's Deferral
              Account shall be paid to the Participant in a lump sum or in
              ten or fifteen  approximately  equal annual  installments as
              designated by the Participant on the initial  Election Form.
              If the  Deferral  Account  for  such  retiree  is less  than
              $50,000,  the balance will be paid in a lump sum  regardless
              of the  designation on the Election Form. The unpaid portion
              of  the   Deferral   Account   shall   continue  to  receive
              allocations  of earnings as provided in Section  5.04.  Upon
              the  Participant's  death,  all unpaid  amounts  held in the
              Participant's   Deferral   Account  shall  be  paid  to  the
              Participant's  Beneficiary  in a lump sum. Such payment will
              be paid no later than the first  business  day of the fourth
              month following the Participant's death.

5.07     Early Withdrawals.  The Plan Administrator may, in its sole discretion,
         accelerate  the  payment  to a  Participant  of  an  amount  reasonably
         necessary  to  pay  for  the  college  tuition  of  such  Participant's
         dependents.  Such payment may be made even if the  Participant  has not
         incurred a Termination of Employment,  provided that he or she has been
         a Participant  for at least five years and has given two year's advance
         written notice to the Plan Administrator of the Participant's desire to
         receive an  accelerated  payment  under  this  Section  5.07.  All such
         distributions  shall  be  made in a lump  sum.  Such  payments  will be
         subject to a forfeiture (withdrawal fee) of 15% of the amount withdrawn
         which shall be an additional debit from the Deferral Account.

5.08     Financial Hardship. The Plan Administrator may, in its sole discretion,
         accelerate  the  payment  to a  Participant  of  an  amount  reasonably
         necessary  to  handle  a severe  financial  hardship  of a  sudden  and
         unexpected  nature  due  to  causes  not  within  the  control  of  the
         Participant.  Such payment may be made even if the  Participant has not
         incurred a Termination  of Employment  and  regardless of the number of
         years  he or  she  has  been  a  Participant.  All  financial  hardship
         distributions  shall be made in cash in a lump sum.  Such payments will
         be made on a first-in,  first-out basis so that the oldest Compensation
         deferred  under  the  Plan  shall  be  deemed  distributed  first  in a
         financial hardship.
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5.09     Payment  to Minors  and  Incapacitated  Persons.  In the event that any
         amount is payable to a minor or to any person who,  in the  judgment of
         the Plan  Administrator,  is  incapable  of making  proper  disposition
         thereof,  such  payment  shall be made for the benefit of such minor or
         such person in any of the following ways as the Plan Administrator,  in
         its sole discretion, shall determine:

               (a)  By payment to the legal representative of such minor or such
                    person;

               (b)  By payment directly to such minor or such person;

               (c)  By  payment in  discharge  of bills  incurred  by or for the
                    benefit of such minor or such person. The Plan Administrator
                    shall make such payments without the necessary  intervention
                    of  any  guardian  or  like   fiduciary,   and  without  any
                    obligation  to  require  bond  or  to  see  to  the  further
                    application of such payment. Any payment so made shall be in
                    complete   discharge  of  the  Plan's   obligation   to  the
                    Participant and his or her Beneficiaries.

5.10     Application  for  Benefits.   The  Plan  Administrator  may  require  a
         Participant  or  Beneficiary  to complete and file  certain  forms as a
         condition  precedent  to receiving  the payment of benefits,  including
         without  limitation a consent to  participation  in any corporate owned
         life   insurance   program  which  the  Company   sponsors.   The  Plan
         Administrator may rely upon all such information given to it, including
         the Participant's  current mailing address. It is the responsibility of
         all persons interested in receiving a distribution pursuant to the Plan
         to keep the  Plan  Administrator  informed  of  their  current  mailing
         addresses.

5.11     Designation  of  Beneficiary.  Each  Participant  from time to time may
         designate any person or persons (who may be designated  contingently or
         successively  and who may be an entity other than a natural  person) as
         his or her  Beneficiary  or  Beneficiaries  to whom  the  Participant's
         Deferral  Account is to be paid if the Participant  dies before receipt
         of all such benefits. Each Beneficiary designation shall be on the form
         prescribed by the Plan  Administrator  and will be effective  only when
         filed with the Plan  Administrator  during the Participant's  lifetime.
         Each Beneficiary  designation  filed with the Plan  Administrator  will
         cancel  all  Beneficiary  designations  previously  filed with the Plan
         Administrator.  The revocation of a Beneficiary designation,  no matter
         how  effected,   shall  not  require  the  consent  of  any  designated
         Beneficiary.

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                                  ARTICLE 6
                        BENEFITS PAID FROM GENERAL ASSETS

6.01     Benefit Payments from General Assets.  Plan benefits shall be paid from
         the  general  assets of the  Company or as  otherwise  directed  by the
         Company.  To the  extent  that any  Participant  acquires  the right to
         receive  payments  under the Plan (from  whatever  source),  such right
         shall be no greater than that of an unsecured  general  creditor of the
         Company.  Participants  and  their  Beneficiaries  shall  not  have any
         preference or security interest in the assets of the Company other than
         as a general unsecured creditor.

                                    ARTICLE 7
                            AMENDMENT AND TERMINATION

7.01     Amendment and Termination.  The Committee reserves the right to modify,
         alter, amend, or terminate the Plan, at any time and from time to time,
         without notice, to any extent deemed advisable; provided, however, that
         no such amendment or termination  shall (without the written consent of
         the Participant,  if living, and if not, the Participant's Beneficiary)
         adversely  affect any  benefit  under the Plan which has  accrued  with
         respect  to the  Participant  or  Beneficiary  as of the  date  of such
         amendment or  termination  regardless of whether such benefit is in pay
         status.

                                    ARTICLE 8
                                CLAIMS PROCEDURE

8.01     Claims  Procedure.  Deferral  Accounts shall be paid in accordance with
         the  provisions of this  Agreement.  If the  Participant  or his or her
         Beneficiary requests payment of benefits, and such request is denied in
         whole or in part, the  Participant or his  designated  Beneficiary  may
         request a review of the Company's  denial of benefits within sixty days
         of the date the Participant or his Beneficiary  receives written notice
         of such denial.  If the Company again denies the  Participant's  or his
         Beneficiary's  request  for  payment of  benefits,  the  Company  shall
         provide  written notice of the denial of benefits to the Participant or
         his  Beneficiary  and  shall  include  in such  notice a claims  appeal
         procedure,  all in  accordance  with  Section  503 of the ERISA and DOL
         Regulation  ss.2560.503-1  and such procedures are incorporated in this
         Agreement by reference.

                                    ARTICLE 9
                                  MISCELLANEOUS

9.01     Headings.  The headings and sub-headings in the Plan have been inserted
         for convenience of reference only and are to be ignored in any
         construction of the provisions hereof.

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9.02     Spendthrift  Clause.  None  of  the  benefits,  payments,  proceeds  or
         distributions  under  the Plan  shall be  subject  to the  claim of any
         creditor of any Participant or Beneficiary,  or to any legal process by
         any creditor of such Participant or Beneficiary, and none of them shall
         have any right to alienate,  commute,  anticipate  or assign any of the
         benefits,  payments, proceeds or distributions under the Plan except to
         the extent expressly provided herein to the contrary.

9.03     Change  in  Control.  A change  of  Control  is the  purchase  or other
         acquisition  by any  person,  entity or group of  persons,  within  the
         meaning  of  section  13(d)  of the  Securities  Exchange  Act of  1934
         ("Act"),  or  any  comparable  successor   provisions,   or  beneficial
         ownership  (within the meaning of Rule 13d-3 promulgated under the Act)
         of 30 percent or more of either the outstanding  shares of common stock
         or the  combined  voting  power of Company's  then  outstanding  voting
         securities  entitled  to  vote  generally,   or  the  approval  by  the
         stockholders of Company of a reorganization,  merger, or consolidation,
         in each case,  with respect to which persons who were  stockholders  of
         Company   immediately   prior  to  such   reorganization,   merger   or
         consolidation do not, immediately thereafter,  own more than 50 percent
         of the combined voting power entitled to vote generally in the election
         of directors of the reorganized,  merged or consolidated Company's then
         outstanding  securities,  or a liquidation or dissolution of Company or
         of the sale of all or substantially all of Company's  assets.  The Plan
         shall not be automatically  terminated by the Company's acquisition by,
         merger into,  or sale of  substantially  all of its assets to any other
         organization,  but the  Plan  shall  be  continued  thereafter  by such
         successor  organization.  All  rights  to  amend,  modify,  suspend  or
         terminate the Plan shall be transferred to the successor  organization,
         effective  as of the date of the Change in  Control.  If the  successor
         terminates  the Plan,  all  Participants  shall  thereupon  become 100%
         vested  in  their  Deferral   Accounts,   including   Company  Matching
         Contributions and earnings  thereon.  If within 24 months of the Change
         in Control a Participant  incurs a Termination of Employment other than
         for cause,  such Participant  shall thereupon become 100% vested in his
         or her Deferral Account,  including Company Matching  Contributions and
         earnings thereon.

9.04     Release.  Any payment to Participant or Beneficiary,  or to their legal
         representatives,  in accordance with the provisions of the Plan,  shall
         to the extent thereof be in full  satisfaction of all claims  hereunder
         against the Committee,  the Plan Administrator and the Company,  any of
         whom   may   require   such   Participant,    Beneficiary,   or   legal
         representative,  as a condition precedent to such payment, to execute a
         receipt and release therefor in such form as shall be determined by the
         Plan Administrator, the Committee, or the Company, as the case may be,

9.05     Governing  Law and Venue. To the extent not  governed  by federal  law,
         the Plan shall be construed  in  accordance  with and  governed  by the
         laws of the State of Florida. Venue shall lie in Duval County, Florida.

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<PAGE>
9.06     Successors and Assigns. The Plan shall be binding upon the successors
         and assigns of the parties hereto.

9.07     Tax Withholding.  Notwithstanding any other provision of this Plan, the
         Company may  withhold  from any payment  made by it under the Plan such
         amount or amounts as may be required for purposes of complying with the
         tax, withholding or other provisions of the Code or the Social Security
         Act or any  state  or  local  income  or  unemployment  tax  act or for
         purposes of paying any estate, inheritance or other tax attributable to
         any amounts payable hereunder.

     IN WITNESS  WHEREOF,  the Company has caused this Plan to be duly  executed
and its seal to be hereunto  affixed on the date indicated  below, but effective
as of September 1, 1999.

                                STEIN MART, INC.

                                By: /s/ D. Hunt Hawkins
                                ------------------------------------------------

                                Title: Senior Vice President, Human Resources
                                ------------------------------------------------

                                Date: 9/13/99
                                ------------------------------------------------

[CORPORATE SEAL]
Attest:

-----------------------

                                       41<PAGE>

                                      NOTE

$350,000                                                          Burlington, NJ
                                                                    May 12, 1998

         FOR VALUE RECEIVED, VOICE POWERED TECHNOLOGY INTERNATIONAL, INC., a
California corporation (the "Company"), DOES HEREBY PROMISE to pay to the order
of FRANKLIN ELECTRONIC PUBLISHERS ("Franklin"), at the office of Franklin at One
Franklin Plaza, Burlington, NJ 08016, the principal amount of THREE HUNDRED AND
FIFTY THOUSAND DOLLARS ($350,000) in lawful money of the United States of
America, in immediately available funds on May 12, 2003. The Company also
promises to pay interest on the principal amount hereof, in like money, at such
office, and at the rate per annum equal to 8%.

         The principal balance of this Note and any interest then accrued shall
be immediately due and payable on any default by Company of any obligations to
Franklin, including any obligations under any other note payable to Franklin.

         This Note shall be governed by and construed in accordance with the
laws of the State of New Jersey.

                               VOICE POWERED TECHNOLOGY
                               INTERNATIONAL, INC.

                               By:  /s/
                                   ------------------------
                                      Authorized Officer

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