Document:

Amended Loan Document

 Exhibit 10.1 
 SECOND AMENDMENT TO LOAN AGREEMENT 
 THIS SECOND AMENDMENT TO LOAN AGREEMENT (the
“Amendment”) is made and entered into effective as of June 30, 2009, by and between AMERICAN ELECTIC TECHNOLOGIES, INC., a Florida corporation (“Borrower”), and JPMORGAN CHASE BANK, N.A., a
national association (“Lender”). 
 R E C I T A L S:

 WHEREAS, Borrower and Lender entered into a Letter Loan Agreement dated October 31, 2007 (which as the same may have been or may
hereafter be amended from time to time is herein called the “Loan Agreement”; the terms defined therein being used herein as therein defined unless otherwise defined herein); and 
 WHEREAS, Borrower and Lender desire to amend the Loan Agreement to extend the Maturity Date and amend certain terms and provisions of the Loan Agreement.

 A G R E E M E N T: 
 1. Amendments to the Loan Agreement. The Loan Agreement is, effective the date hereof, and subject to the satisfaction of the conditions precedent
set forth in Section 2 hereof, hereby amended as follows: 
 (a) Section 1 of the Loan Agreement is hereby amended in its entirety
to read as follows: 
 “(a) Commitment. Subject to the terms and conditions set forth herein, Lender agrees to
make loans (each of which is a “Loan”, and collectively the “Loans”) to Borrower, on a revolving basis (the “Borrowing Base Facility”) from time to time during the period commencing on the date
hereof and continuing through July 1, 2011 (the “Maturity Date”), the maturity date of the promissory note evidencing the Borrowing Base Facility, such amounts as Borrower may request hereunder; provided, however, the total
principal amount (the “Borrower’s Loan Limit”) outstanding at any time shall not exceed the lesser of (i) an amount equal to the Borrowing Base and (ii) $10,000,000 minus the aggregate face amount of any Letters
of Credit. Subject to the terms and conditions hereof, Borrower may borrow, repay and reborrow hereunder. If at any time the outstanding advances under the Borrowing Base Facility exceed the Borrower’s Loan Limit as shown on any reports
delivered to Lender under Section 6(d)(ii) or as indicated by Lender’s own records, Borrower shall, on the date of the delivery of such report to Lender or on the date of notice from Lender as to Lender’s records, prepay on the
Borrowing Base Facility such amount as may be necessary to eliminate such excess, plus all accrued but unpaid interest thereon. The sums advanced under the Borrowing Base Facility shall be used for general corporate purposes and working capital. As
used in this Agreement, the term “Borrowing Base” shall have the meaning set forth in Exhibit A attached hereto. 
 (b) Interest Rates. The Advance(s) evidenced by this Agreement may be drawn down and remain outstanding as up to five (5) LIBOR Rate Advances 

  

 Second Amendment to Loan Agreement – Page 1 

 
and/or a CB Floating Rate Advance. Borrower shall pay interest to Lender on the outstanding and unpaid principal amount of each CB Floating Rate Advance at
the CB Floating Rate plus the Applicable Margin and each LIBOR Rate Advance at the Adjusted LIBOR Rate. Interest shall be calculated on the basis of the actual number of days elapsed in a year of 360 days, unless that calculation would result in a
usurious interest rate, in which case interest will be calculated on the basis of a 365 or 366 day year, as the case may be. In no event shall the interest rate applicable to any Advance exceed the maximum rate allowed by law. Any interest payment
which would for any reason be deemed unlawful under applicable law shall be applied to principal. 
 (c) Notice and Manner
of Electing Interest Rates on Advances. Borrower shall give Lender written notice (effective upon receipt) of Borrower’s intent to draw down an Advance under this Agreement no later than 2:00 p.m. Central time, on the date of disbursement,
if the full amount of the drawn Advance is to be disbursed as a CB Floating Rate Advance and no later than 11:00 a.m. Central time three (3) Business Days before disbursement, if any part of such Advance is to be disbursed as a LIBOR Rate
Advance. Borrower’s notice must specify: (i) the disbursement date, (ii) the amount of each Advance, (iii) the type of each Advance (CB Floating Rate Advance or LIBOR Rate Advance), and (iv) for each LIBOR Rate Advance, the
duration of the applicable Interest Period; provided, however, that Borrower may not elect an Interest Period ending after the Maturity Date. Each LIBOR Rate Advance shall be in a minimum amount of $100,000. All notices under this subparagraph are
irrevocable. By Lender’s close of business on the disbursement date and upon fulfillment of the conditions set forth herein and in any other of the Loan Documents, Lender shall disburse the requested Advances in immediately available funds by
crediting the amount of such Advances to Borrower’s account with Lender. 
 (d) Conversion and Renewals. Borrower
may elect from time to time to convert one type of Advance into another or to renew any Advance by giving Lender written notice no later than 2:00 p.m. Central time, on the date of the conversion into or renewal of a CB Floating Rate Advance and 11
a.m. Central time three (3) Business Days before conversion into or renewal of a LIBOR Rate Advance, specifying: (i) the renewal or conversion date, (ii) the amount of the Advance to be converted or renewed, (iii) in the case of
conversion, the type of Advance to be converted into (CB Floating Rate Advance or LIBOR Rate Advance), and (iv) in the case of renewals of or conversion into a LIBOR Rate Advance, the applicable Interest Period, provided that (1) the
minimum principal amount of each LIBOR Rate Advance outstanding after a renewal or conversion shall be $100,000; (2) a LIBOR Rate Advance can only be converted on the last day of the Interest Period for the Advance; and (3) Borrower may
not elect an Interest Period ending after the Maturity Date. All notices given under this subparagraph are irrevocable. If Borrower fails to give Lender the notice specified above for the renewal or conversion of a LIBOR Rate Advance by 11:00 a.m.
Central time three (3) Business Days before the end of the Interest Period for that Advance, the Advance shall automatically be converted to a CB Floating Rate Advance on the last day of the Interest Period for the Advance. 
  

 Second Amendment to Loan Agreement – Page 2 

 (e) Interest Payments. Interest on the Advances shall be paid as follows:

 (i) For each CB Floating Rate Advance, on the last day of each month beginning with the first month following disbursement
of the Advance or following conversion of an Advance into a CB Floating Rate Advance, and at the maturity or conversion of the Advance into a LIBOR Rate Advance; and 
 (ii) For each LIBOR Rate Advance, on the last day of the Interest Period for the Advance and, if the Interest Period is longer than three
(3) months, at three-month intervals beginning with the day three (3) months from the date the Advance is disbursed. 
 (f) Prepayments and Funding Loss Indemnification. Borrower may prepay all or any part of any CB Floating Rate Advance at any time without premium or penalty. Borrower shall pay Lender amounts sufficient (in Lender’s reasonable
opinion) to compensate Lender for any loss, cost, or expense incurred as a result of: 
 (i) Any payment of a LIBOR Rate
Advance on a date other than the last day of the Interest Period for the Advance, including, without limitation, acceleration of the Advances by Lender pursuant to this Agreement or the other Loan Documents; or 
 (ii) Any failure by Borrower to borrow or renew a LIBOR Rate Advance on the date specified in the relevant notice from Borrower to
Lender. 
 (g) Principal Payments. Borrower promises to pay all Advances then outstanding on the Maturity Date.

 (h) Default Rate of Interest. After an Event of Default has occurred, whether or not Lender elects to accelerate the
maturity of the Note because of such Event of Default, all Advances outstanding under this Agreement shall bear interest at a per annum rate equal to the interest rate being charged on the Advance plus 3% (the “Default Rate”) from
the date Lender elects to impose such rate. Imposition of such rate shall not affect any limitations contained in this Agreement on Borrower’s right to repay principal on any LIBOR Rate Advance before the expiration of the Interest Period for
that Advance. 
 (i) Additional Costs. If any applicable domestic or foreign law, treaty, government rule or regulation
now or later in effect (whether or not it now applies to Lender) or the interpretation or administration thereof by a governmental authority charged with such interpretation or administration, or compliance by Lender with any guideline, request or
directive of such an authority (whether or not having the force of law), shall (1) affect the basis of taxation of payments to Lender of any amounts payable by Borrower under this Agreement or the other Loan Documents (other than taxes imposed
on the overall net income of Lender 

  

 Second Amendment to Loan Agreement – Page 3 

 
by the jurisdiction or by any political subdivision or taxing authority of the jurisdiction in which Lender has its principal office), or (2) impose,
modify or deem applicable any reserve, special deposit or similar requirement (including, without limitation, Federal Deposit Insurance Corporation deposit insurance premiums or assessments) against assets of, deposits with or for the account of, or
credit extended by Lender, or (3) impose any other condition with respect to this Agreement or the other Loan Documents and the result of any of the foregoing is to increase the cost to Lender of extending, maintaining or funding any Advance or
to reduce the amount of any sum receivable by Lender on any Advance, or (4) affect the amount of capital required or expected to be maintained by Lender (or any corporation controlling Lender) and Lender determines that the amount of such
capital is increased by or based upon the existence of Lender’s obligations under this Agreement or the other Loan Documents and the increase has the effect of reducing the rate of return on Lender’s (or its controlling corporation’s)
capital as a consequence of the obligations under this Agreement or the other Loan Documents to a level below that which Lender (or its controlling corporation) could have achieved but for such circumstances (taking into consideration its policies
with respect to capital adequacy) by an amount deemed by Lender to be material, then Borrower shall pay to Lender, from time to time, upon request by Lender, additional amounts sufficient to compensate Lender for the increased cost or reduced sum
receivable. Whenever Lender shall learn of circumstances described in this section which are likely to result in additional costs to Borrower, Lender shall give prompt written notice to Borrower of the basis for and the estimated amount of any such
anticipated additional costs. A statement as to the amount of the increased cost or reduced sum receivable, prepared in good faith and in reasonable detail by Lender and submitted by Lender to Borrower, shall be conclusive and binding for all
purposes absent manifest error in computation. 
 (j) Illegality. If any applicable domestic or foreign law, treaty,
rule or regulation now or later in effect (whether or not it now applies to Lender) or the interpretation or administration thereof by a governmental authority charged with such interpretation or administration, or compliance by Lender with any
guideline, request or directive of such an authority (whether or not having the force of law), shall make it unlawful or impossible for Lender to maintain or fund the LIBOR Rate Advances, then, upon notice to Borrower by Lender, the outstanding
principal amount of the LIBOR Rate Advances, together with accrued interest and any other amounts payable to Lender under this Agreement or the other Loan Documents on account of the LIBOR Rate Advances shall be repaid (i) immediately upon
Lender’s demand if such change or compliance with such requests, in Lender’s judgment, requires immediate repayment, or (ii) at the expiration of the last Interest Period to expire before the effective date of any such change or
request provided, however, that subject to the terms and conditions of this Agreement and the other Loan Documents Borrower shall be entitled to simultaneously replace the entire outstanding balance of any LIBOR Rate Advance repaid in accordance
with this section with a CB Floating Rate Advance in the same amount. 
  

 Second Amendment to Loan Agreement – Page 4 

 (k) Inability to Determine Interest Rate. If Lender determines that
(i) quotations of interest rates for the relevant deposits referred to in the definition of Adjusted LIBOR Rate are not being provided in the relevant amounts or for the relevant maturities for purposes of determining the interest rate on a
LIBOR Rate Advance as provided in this Agreement, or (ii) the relevant interest rates referred to in the definition of Adjusted LIBOR Rate do not accurately cover the cost to Lender of making, funding or maintaining LIBOR Rate Advances, then
Lender shall, at Lender’s option, give notice of such circumstances to Borrower, whereupon (1) the obligation of Lender to make LIBOR Rate Advances shall be suspended until Lender notifies Borrower that the circumstances giving rise to the
suspension no longer exists and (2) Borrower shall repay in full the then outstanding principal amount of each LIBOR Rate Advance, together with accrued interest, on the last day of the then current Interest Period applicable to the LIBOR Rate
Advance; provided, however, that, subject to the terms and conditions of this Agreement and the other Loan Documents, Borrower shall be entitled to simultaneously replace the entire outstanding balance of any LIBOR Rate Advance repaid in accordance
with this section with an Advance bearing interest at the CB Floating Rate plus the Applicable Margin for CB Floating Rate Advances in the same amount. If the Lender determines on any day that quotations of interest rates for the relevant deposits
referred to in the definition of Adjusted One Month LIBOR Rate are not being provided for purposes of determining the interest rate on any CB Floating Rate Advance on any day, then each CB Floating Rate Advance shall hear interest at the Prime Rate
plus the Applicable Margin for CB Floating Rate Advances until Lender determines that quotations of interest rates for the relevant deposits referred to in the definition of Adjusted One Month LIBOR Rate are being provided. 
 (l) Obligations Due on Non-Business Day. Whenever any payment under this Agreement becomes due and payable on a day that is not a
Business Day, if no Event of Default then exists, the maturity of the payment shall be extended to the next succeeding Business Day, except, in the case of a LIBOR Rate Advance, if the result of the extension would be to extend the payment into
another calendar month, the payment must be made on the immediately preceding Business Day. 
 (m) Application of
Payments. Payments shall be allocated among principal, interest and fees at the discretion of Lender unless otherwise agreed or required by applicable law. Acceptance by Lender of any payment which is less than the payment due at the time shall
not constitute a waiver of Lender’s right to receive payment in full at that time or any other time. 
 (n) Commitment
Fee. In consideration of Lender’s commitment to make Advances, Borrower will pay to Lender a commitment fee (the “Commitment Fee”) determined on a daily basis by applying 0.30% per annum to the unused portion of the
Borrower’s Loan Limit on each day during the term of the Borrowing Base Facility, determined for each such day by deducting from the amount of the Borrower’s Loan Limit at the end of such day the Facility Usage. For the purposes of this
subparagraph (n), the term “Facility Usage” mean the 

  

 Second Amendment to Loan Agreement – Page 5 

 
aggregate amount of outstanding Advances under the Borrowing Base Facility. The Commitment Fee shall be due and payable quarterly in arrears on the last day
of each March, June, September and December, commencing on June 30, 2009, and at the Maturity Date.” 
 (b) The
definition of “Consolidated Tangible Net Worth” in Section 8(a) of the Loan Agreement is hereby amended in its entirety to read as follows: 
 “Consolidated Tangible Net Worth” means all of Borrower’s and its Subsidiaries’ assets less the sum of (i) the aggregate book value of Consolidated Intangible Assets, (ii) advances
to and investments in joint ventures, (iii) accounts receivable from the holders of equity interests and Borrower’s Affiliates and (iv) Consolidated Total Liabilities.” 
 (c) Subparagraph (ii) of Section 8(b) of the Loan Agreement is hereby amended in its entirety to read as follows: 
 “(ii) Total Liabilities to Tangible Net Worth Ratio. Permit, as of the end of each calendar quarter, the ratio of its
Consolidated Total Liabilities (excluding any Subordinated Debt) to Consolidated Tangible Net Worth to be more than 1.50 to 1.” 
 (d) Exhibit A - Definitions. Exhibit A to the Loan Agreement is hereby amended in its entirety and replaced to read as set forth on Exhibit A attached hereto. 
 2. Conditions of Effectiveness. This Amendment shall become effective when, and only when, Lender shall have received counterparts of this
Amendment executed by Borrower and Section 1 hereof shall become effective when, and only when, Lender shall have additionally received any and all other documentation as Lender may reasonably require. 
 3. Representations and Warranties of Borrower. Borrower represents and warrants as follows: 
 (a) Borrower is duly authorized and empowered to execute, deliver and perform this Amendment and all other instruments referred to or mentioned herein to
which it is a party, and all action on its part requisite for the due execution, delivery and the performance of this Amendment has been duly and effectively taken. This Amendment, when executed and delivered, will constitute valid and binding
obligations of Borrower enforceable in accordance with its terms. This Amendment does not violate any provisions of Borrower’s Articles of Incorporation, By-Laws, or any contract, agreement, law or regulation to which Borrower is subject, and
does not require the consent or approval of any regulatory authority or governmental body of the United States or any state. 
 (b) The
representations and warranties made by Borrower in the Loan Agreement are true and correct as of the date of this Amendment. 
 (c) No event
has occurred and is continuing which constitutes an Event of Default or would constitute an Event of Default but for the requirement that notice be given or time elapse or both. 
  

 Second Amendment to Loan Agreement – Page 6 

 4. Reference to and Effect on the Loan Documents. 
 (a) Upon the effectiveness of Section 1 hereof, on and after the date hereof, each reference in the Loan Agreement to “this Agreement”,
“hereunder”, “hereof”, “herein” or words of like import, and each reference in the Loan Documents shall mean and be a reference to the Loan Agreement as amended hereby. 
 (b) Except as specifically amended above, the Loan Agreement and the Note(s), and all other instruments securing or guaranteeing Borrower’s
obligations to Lender (collectively, the “Loan Documents”) shall remain in full force and effect and are hereby ratified and confirmed. Without limiting the generality of the foregoing, the Loan Documents and all collateral
described therein do and shall continue to secure the payment of all obligations of Borrower under the Loan Agreement and the Note(s), as amended hereby, and under the other Loan Documents. 
 (c) The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power
or remedy of Lender under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents. 
 5. Costs
and Expenses. Borrower agrees to pay on demand all costs and expenses of Lender in connection with the preparation, reproduction, execution and delivery of this Amendment and the other instruments and documents to be delivered hereunder,
including the reasonable fees and out-of-pocket expenses of counsel for Lender. In addition, Borrower shall pay any and all fees payable or determined to be payable in connection with the execution and delivery, filing or recording of this Amendment
and the other instruments and documents to be delivered hereunder, and agrees to save Lender harmless from and against any and all liabilities with respect to or resulting from any delay in paying or omission to pay such fees. 
 6. Execution in Counterparts. This Amendment 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 taken together shall constitute but one and the same instrument. 
 7. Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of Texas. 
 8. Facsimile Documents and Signatures. For purposes of negotiating and finalizing this Amendment, if this document or any document executed in
connection with it is transmitted by facsimile machine, it shall be treated for all purposes as an original document. Additionally, the signature of any party on this document transmitted by way of a facsimile machine shall be considered for all
purposes as an original signature. Any such faxed document shall be considered to have the same binding legal effect as an original document. At the request of any party, any faxed document shall be re-executed by each signatory party in an original
form. 
 9. Joinder of Guarantor. M & I Electric Industries, Inc. and American Access Technologies, Inc., Guarantor as defined in
the Loan Agreement, join in the execution of this Amendment to evidence Guarantor’s consent to the terms hereof, to confirm Guarantor’s continuing obligations under the terms of the Guaranty Agreement, and to acknowledge that without such
consent and confirmation, Lender would not enter into this Amendment or 

  

 Second Amendment to Loan Agreement – Page 7 

 
otherwise consent to the terms hereof. Additionally, Guarantor represents to Lender that Guarantor is duly authorized and empowered to execute, deliver and
perform this Amendment, and all action on its part requisite for the due execution, delivery and the performance of this Amendment has been duly and effectively taken. This Amendment, when executed and delivered, will constitute valid and binding
obligations of Guarantor enforceable in accordance with its terms. 
 10. Final Agreement. THIS WRITTEN AMENDMENT OF LOAN AGREEMENT
REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 
 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed in multiple counterparts, each of which is an original instrument
for all purposes, all as of the day and year first above written. 
  

			
	BORROWER:
	
	AMERICAN ELECTRIC TECHNOLOGIES, INC.
		
	By:	 	  

		 	John H. Untereker,
		 	Senior Vice President and CFO
	
	LENDER:
	
	JPMORGAN CHASE BANK, N.A.
		
	By:	 	  

		 	Carlos Valdez, Jr.,
		 	Senior Vice President

  

			
	GUARANTOR:
	
	M & I ELECTRIC INDUSTRIES, INC.
		
	By:	 	  

		 	John H. Untereker,
		 	Senior Vice President and CFO
	
	AMERICAN ACCESS TECHNOLOGIES, INC.
		
	By:	 	  

		 	Arthur Dauber, CEO

  

 Second Amendment to Loan Agreement – Page 8 

 EXHIBIT A 
 DEFINITIONS 
 “Adjusted LIBOR Rate” means, with respect to a LIBOR Rate Advance for
the relevant Interest Period, the sum of (i) the Applicable Margin plus (ii) the quotient of (a) the LIBOR Rate applicable to such Interest Period, divided by (b) one minus the Reserve Requirement (expressed as a decimal)
applicable to such Interest Period. 
 “Adjusted One Month LIBOR Rate” means, with respect to a CB Floating Rate Advance for
any day, the sum of (i) 2.50% per annum plus (ii) the quotient of (a) the interest rate determined by Lender by reference to the Page to be the rate at approximately 11:00 a.m. London time, on such date or, if such date is not a
Business. Day, on the immediately preceding Business Day for dollar deposits with a maturity equal to one (1) month divided by (b) one minus the Reserve Requirement (expressed as a decimal) applicable to dollar deposits in the London
interbank market with a maturity equal to one (1) month. 
 “Advance” means a LIBOR Rate Advance or a CB Floating Rate
Advance and “Advances” means all LIBOR Rate Advances and all CB Floating Rate Advances under this Agreement. 
 “Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, controls or is controlled by or is under common control with the Person specified.

 “Applicable Margin” means with respect to any CB Floating Rate Advance, zero, and with respect to any LIBOR Rate Advance,
2.25% per annum. 
 “Borrowing Base” means, for Borrower and each Subsidiary which is a Guarantor, the amount
determined as of a particular date equal to the sum of (a) 80% of Eligible Accounts and (b) 40% of Eligible Inventory up to an amount not to exceed $1,000,000; provided, however, that (i) only Collateral for which the representations
and warranties under this Agreement and the other Loan Documents are true and correct at the time of calculation shall be included in the aggregate Borrowing Base, (ii) upon notice to Borrower, Lender at any time and from time to time may
adjust the preceding percentage(s) or modify or add categories of eligibility, (iii) if Lender at any time determines any method of valuation overstates the actual fair market value at the time, upon notice to Borrower, Lender may recalculate
those values to fair market value, and (iv) in no event shall the Borrowing Base ever exceed the Borrower’s Loan Limit.” 
 “Borrowing Base Report” means a report in the form attached hereto as Exhibit C, appropriately completed, together with the following attachments: a detailed aged schedule of all Eligible Accounts as of the date
specified in such report, listing face amounts and dates of invoices of each such Eligible Account and the name of each account debtor obligated on such Eligible Account (and, upon request of Lender, the address of an account debtor, copies of
invoices, credit reports, and any other matters and information relating to the Eligible Accounts), a schedule of Eligible Inventory, setting forth the location of all such Eligible Inventory (other than Eligible Inventory in transit), including
Eligible Inventory not in the possession of Borrower and the name of the person in possession thereof and whether and how much of such Eligible Inventory consists of raw material, finished goods or otherwise and a summary aged listing of
Borrower’s and Guarantor’s accounts payable and an aged list of the ten largest accounts payable. 
  

 Exhibit A – Page 1 

 “Business Day” means (i) with respect to the Adjusted One Month LIBOR Rate and any
borrowing, payment or rate selection of LIBOR Rate Advances, a day (other than a Saturday or Sunday) on which banks generally are open in Texas and/or New York for the conduct of substantially all of their commercial lending activities and on which
dealings in United States dollars are carried on in the London interbank market and (ii) for all other purposes, a day other than a Saturday, Sunday or any other day on which national banking associations are authorized to be closed.

 “CB Floating Rate” means the Prime Rate; provided that the CB Floating Rate shall, on any day, not be less than the
Adjusted One Month LIBOR Rate. The CB Floating Rate is a variable rate and any change in the CB Floating Rate due to any change in the Prime Rate or the Adjusted One Month LIBOR Rate is effective from and including the effective date of such change
in the Prime Rate or the Adjusted One Month LIBOR Rate, respectively. 
 “CB Floating Rate Advance” means any Advance under
this Agreement when and to the extent that its interest rate is determined by reference to the CB Floating Rate. 
 “Change of
Control” means the occurrence of any of the following events: (a) any Person or two or more Persons acting as a group shall acquire beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange Commission under
the Securities Act of 1934, as amended, and including holding proxies to vote for the election of directors other than proxies held by Borrower’s management or their designees to be voted in favor of Persons nominated by Borrower’s Board
of Directors) of 35% or more of the outstanding voting securities of Borrower, measured by voting power (including both common stock and any preferred stock or other equity securities entitling the holders thereof to vote with the holders of common
stock in elections for directors of Borrower) or (b) one-third or more of the directors of Borrower shall consist of Persons not nominated by Borrower’s Board of Directors (not including as Board nominees any directors which the Board is
obligated to nominate pursuant to shareholders agreements, voting trust arrangements or similar arrangements). 
 “Consolidated” refers to the consolidation of any Person, in accordance with GAAP, with its properly consolidated subsidiaries. References herein to a Person’s Consolidated financial statements, financial position,
financial condition, liabilities, etc. refer to the consolidated financial statements, financial position, financial condition, liabilities, etc. of such Person and its properly consolidated subsidiaries. 
 “Default Rate” has the meaning specified in Section 1(h) of this Agreement, provided in any case that no Default Rate charged by
Lender shall ever exceed the Maximum Rate. 
 “Disclosure Schedule” means Exhibit D attached hereto. 
 “Dividend” means (a) any dividend or other distribution made by Borrower or a Subsidiary on or in respect of any equity interests
in Borrower or such Subsidiary, or (b) any payment made by Borrower or a Subsidiary to purchase, redeem, acquire or retire any equity interest in Borrower or such Subsidiary. 
  

 Exhibit A – Page 2 

 “Eligible Accounts” means all Accounts except the following: 
 (a) any Account which arises out of a sale to an Account Debtor which is an Affiliate of Borrower. 
 (b) any Account which has not yet been invoiced or any Account the goods giving rise to which have not been delivered or the services
giving rise to which have not been performed, or which otherwise does not represent a completed sale or performance. 
 (c)
any Account balances due or unpaid more than 90 days after its original invoice date or which has an original due date which is more than 90 days after its original invoice date. 
 (d) any Account owed by an Account Debtor which is also a creditor or supplier of Borrower or by an Account Debtor which has asserted any
defense or contested any liability with respect to such Account, or any Account which otherwise is or may become subject to any right of set off by the Account Debtor thereof provided that to the extent the Account exceeds the amount of the right of
set off, the positive balance shall be included as an Eligible Account. 
 (e) any Account owed by an Account Debtor more than
25% (in dollar amount) of whose Accounts are not Eligible Accounts on account of paragraphs (c) or (d) above. 
 (f)
any Account owed by an Account Debtor which has commenced a voluntary case under the bankruptcy or insolvency laws of any jurisdiction, or made an assignment for the benefit of creditors, or against which a decree or order for relief has been
entered by a court in an involuntary case under any bankruptcy or insolvency laws of any jurisdiction, or against which any other petition or other application for relief under any bankruptcy or insolvency laws of any jurisdiction has been filed, or
which has suspended business or consented to or suffered a receiver, trustee, liquidator or custodian to be appointed for it or for all or a significant portion of its assets or affairs. 
 (g) except for an amount of up to $100,000 in respect of foreign Eligible Accounts approved by Lender, any Account which (i) arises
out of a sale made or services performed outside of the United States or which is owed by an Account Debtor located outside the United States and (ii) is not either secured by a commercial letter of credit satisfactory, in all respects, to
Lender or such Account Debtor has not otherwise been approved by Lender. 
 (h) any Account the sale for which is on a
bill-and-hold, guaranteed sale, sale-and-return, sale on approval, consignment or any other repurchase or return basis or otherwise contingent on or subject to the fulfillment of any condition. 
 (i) any Account the Account Debtor of which is the United States or any department, agency or instrumentality thereof. 
  

 Exhibit A – Page 3 

 (j) any Account to the extent that, but for this paragraph (j), the Eligible Accounts
owed by any Account Debtor and its Affiliates would exceed 10% of the outstanding aggregate principal balance of all Eligible Accounts. 
 (k) any Account owed by an Account Debtor which is also an employee or sales agent or independent contractor of Borrower or any of Borrower’s Affiliates. 
 (l) any Account subject to a lien or security interest other than one permitted under this Agreement. 
 (m) any Account not valid, binding and enforceable against the Account Debtor thereof in accordance with its terms. 
 (n) any Account not subject to an enforceable and duly perfected first priority security interest in favor of Lender. 
 As used in this definition, “Accounts” means all present and future rights of Borrower to payment for goods sold or leased or for
services rendered (except those evidenced by instruments or chattel paper), whether now existing or hereafter arising and wherever arising and whether or not earned by performance, and “Account Debtor” means the person which is obligated
on any Account. 
 “Eligible Inventory” means any Inventory which: 
 (a) is owned by Borrower or a Subsidiary which is a Guarantor free and clear of all liens and security interests other than those
permitted under this Agreement and, if held or stored on leased premises, is subject to the terms of a lien waiver letter acceptable to Lender executed by the landlord of such premises if deemed necessary by Lender in its sole discretion; and

 (b) is fully and adequately insured with Lender named as loss payee; and 
 (c) is not on lease or consignment or furnished under any contract of service from or to any person; and 
 (d) is finished Inventory, ready for sale, and is not, in the opinion of Lender damaged, obsolete, or otherwise not readily saleable at
full value; and 
 (e) is subject to an enforceable security interest in favor of Lender which is duly perfected and of first
priority, or, if in transit, will be duly perfected and of first priority immediately upon reaching its destination. 
 As used in this
definition, “Inventory” means all goods, now owned or hereafter acquired by Borrower and wherever located, which are held for sale or lease or are to be furnished under any contract of service, excluding work in process or raw
materials in the business of Borrower or a Subsidiary which is a Guarantor, and including goods the sale or other disposition of which has given rise to accounts receivable and which have been returned to or repossessed or stopped in transit by
Borrower or any such Subsidiary. 
  

 Exhibit A – Page 4 

 “Interest Period” means, with respect to a LIBOR Rate Advance, a period of one (1), two
(2) or three (3) month(s) commencing on a Business Day selected by Borrower pursuant to this Agreement. Such Interest Period shall end on the day which corresponds numerically to such date one (1), two (2) or three (3) month(s)
thereafter, as applicable, provided, however, that if there is no such numerically corresponding day in such first, second or third succeeding month(s), as applicable, such Interest Period shall end on the last Business Day of such first, second or
third succeeding month(s), as applicable. If an Interest Period would otherwise end on a day which is not a Business Day, such Interest Period shall end on the next succeeding Business Day, provided, however, that if said next succeeding Business
Day falls in a new calendar month, such Interest Period shall end on the immediately preceding Business Day. 
 “LIBOR Rate”
means with respect to any LIBOR Rate Advance for any Interest Period, the interest rate determined by Lender by reference to Reuters Screen LIBOR01, formerly known as Page 3750 of the Moneyline Telerate Service (together with any successor or
substitute, the “Service”) or any successor or substitute page of the Service providing rate quotations comparable to those currently provided on such page of the Service, as determined by Lender from time to time for purposes of
providing quotations of interest rates applicable to dollar deposits in the London interbank market (the “Page”), to be the rate at approximately 11:00 a.m. London time, two (2) Business Days prior to the commencement of the
Interest Period for dollar deposits with a maturity equal to such Interest Period. If no LIBOR Rate is available to Lender, the applicable LIBOR Rate for the relevant Interest Period shall instead be the rate determined by Lender to be the rate at
which Lender offers to place U.S. dollar deposits having a maturity equal to such Interest Period with first-class banks in the London interbank market at approximately 11:00 a.m. (London time) two (2) Business Days prior to the first day of
such Interest Period. 
 “LIBOR Rate Advance” means any borrowing under this Agreement when and to the extent that its
interest rate is determined by reference to the Adjusted LIBOR Rate. 
 “Maximum Rate” means the maximum nonusurious rate of
interest that Lender is permitted under applicable law to contract for, take, charge or receive. 
 “Person” means any
natural person, corporation, limited liability company, trust, joint stock company, association, company, partnership, governmental authority or other entity. 
 “Prime Rate” means the rate of interest per annum announced from time to time by Lender as its prime rate. The Prime Rate is a variable rate and each change in the Prime Rate is effective from and
including the date the change is announced as being effective. The prime rate is a reference rate and may not be Lender’s lowest rate. 
 “Regulation D” means Regulation D of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor thereto or other regulation or official interpretation of said Board of Governors
relating to reserve requirements applicable to member banks of the Federal Reserve System. 
 “Reserve Requirement” means
the maximum aggregate reserve requirement (including all basic, supplemental, marginal and other reserves) which is imposed under Regulation D. 
  

 Exhibit A – Page 5 

 “Subsidiary” means, with respect to any Person, any corporation, association,
partnership, limited liability company, joint venture, or other business or corporate entity, enterprise or organization which is directly or indirectly (through one or more intermediaries) controlled by or owned fifty percent or more by such
Person. 
  

 Exhibit A – Page 6 

 EXHIBIT C 
 BORROWING BASE REPORT 
 [TO BE ATTACHED] 
  

 Exhibit A – Page 7Employment Agreement

 Exhibit 10.1 
 GREGORY W. KLEFFNER 
 AGREEMENT 
 WITH 
 STEIN MART, INC. 
 This Agreement (this “Agreement”) entered into in the City of Jacksonville and State of Florida between Stein Mart, Inc.,
a Florida corporation and its divisions, subsidiaries and affiliates (the “Company”), and Gregory W. Kleffner (“Executive”), is made as of July 31, 2009 (the “Effective
Date”). 
 In consideration of the promises and mutual covenants contained herein, the parties, intending to be legally bound,
agree as follows: 
  

	SECTION 1.	TERM OF EMPLOYMENT 

 (a)
Term. The Company agrees to employ Executive, and Executive agrees to be employed by the Company, for a period of two (2) year(s) beginning on the Effective Date (the “Term”). 
  

	SECTION 2.	DEFINITIONS 

 “Board of
Directors” means the Board of Directors of Stein Mart, Inc. and any of its divisions, affiliates or subsidiaries. 
 “Cause” means the occurrence of any one or more of the following: 
 (a) Executive has been
convicted of, or pleads guilty or nolo contendere to, a felony involving dishonesty, theft, misappropriation, embezzlement, fraud crimes against property or person, or moral turpitude which negatively impacts the Company; or 
 (b) Executive intentionally furnishes materially false, misleading, or omissive information to the Company or persons to whom the
Executive reports; or 
 (c) Executive intentionally fails to fulfill any assigned responsibilities for compliance with the
Sarbanes-Oxley Act of 2002 or violates the same; or 
 (d) Executive intentionally and wrongfully damages material assets of
the Company; or 
 (e) Executive intentionally and wrongfully discloses material Confidential Information of the Employer; or

 (f) Executive intentionally and wrongfully engages in any competitive activity which would constitute a material breach of
the duty of loyalty; or 
 (g) Executive intentionally breaches any stated material employment policy or any material
provision of the Company’s Ethics Policy, or 
 (h) Executive intentionally commits a material breach of this Agreement,
or 
 (i) Executive intentionally engages in acts or omissions which constitute failure to follow reasonable and lawful
directives of the Company, provided, however, that such acts or omissions are not cured within five (5) days following the Company’s giving notice to Executive that the Company considers such acts or omissions to be “Cause” under
this Agreement. 

 No act, or failure to act, on the part of Executive shall be deemed “intentional” if it was due primarily to an
error in judgment or negligence, but shall be deemed “intentional” only if done, or omitted to be done, by the Executive not in good faith and without reasonable belief that his action or omission was in or not opposed to the best
interests of the Company. Failure to meet performance standards or objectives shall not constitute Cause for purposes hereof. 
 “Change in Control” means the occurrence of any of the following: (a) the Board approves the sale of all or substantially all of the assets of the Company in a single transaction or series of
related transactions; (b) the Company sells and/or one or more shareholders sells a sufficient amount of its capital stock (whether by tender offer, original issuance, or a single or series of related stock purchase and sale agreements and/or
transactions) sufficient to confer on the purchaser or purchasers thereof (whether individually or a group acting in concert) beneficial ownership of at least 35% of the combined voting power of the voting securities of the Company; (c) the
Company is party to a merger, consolidation or combination, other than any merger, consolidation or combination that would result in the holders of the voting securities of the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the Company (or such surviving entity) outstanding immediately after such
merger, consolidation or combination; or (d) a majority of the board of directors consists of individuals who are not Continuing Directors (for this purpose, a Continuing Director is an individual who (i) was a director of the Company on
July 1, 2008 or (ii) whose election or nomination as a director of the Company is approved by a vote of at least a majority of the directors then comprising the Continuing Directors). For purposes hereof, the definition of a Change of
Control shall be construed and interpreted so as to comply with the definition contained in Code Section 409A. 
 “Code” means the Internal Revenue Code of 1986, as amended. Any reference to a specific provision of the Code shall be deemed to refer to any successor provision thereto and the regulations promulgated
thereunder. 
 “Commencement Date” means August 10, 2009, the date the Executive shall report for work and
assume Executive’s responsibilities hereunder; provided, however that Executive shall, except as expressly provided herein to the contrary, be deemed employed for all purposes from the Effective Date. 
 “Compensation Committee” means the Company’s Compensation Committee or, if no such committee exists, the term
Compensation Committee shall mean the Company’s Board of Directors. 
 “Competing Business” means any business
which (i) at the time of determination, is substantially similar to the whole or a substantial part of the business conducted by the Company or any of its divisions or affiliates; (ii) at the time of determination, is operating a store or
stores which, during its or their fiscal year preceding the determination, had aggregate net sales, including sales in leased and licensed departments, in excess of $10,000,000, if such store or any such stores is or are located in a city or within
a radius of 25 miles from the outer limits of a city where the Company, or any of its divisions or affiliates, is operating a store or stores which, during their fiscal year preceding the determination, had aggregate net sales, including sales in
leased and licensed departments, in excess of $10,000,000; and (iii) had aggregate net sales at all locations, including sales in leased and licensed departments and sales by its divisions and affiliates, during its fiscal year preceding that
in which the Executive first rendered personal services thereto, in excess of $25,000,000. 
 “Continuation Period”
means a period following the Termination Date of the Executive’s employment with the company equal to: 
  

	 	(i)	twelve (12) months (a) following a termination by the Company due to a non-renewal of the Term of this Agreement under §5(a) hereof, or (b) following a
termination by the Company without Cause or by the Executive for Good Reason under §5(b) hereof, or 

  

 2 

	 	(ii)	twenty-four (24) months following a termination (a) by the Company without Cause following a Change in Control under §5(f)(i) hereof, or (b) by the Executive for
Good Reason following a Change in Control under §5(b) as the definition of Good Reason is expanded in §5(b)(i) hereof. 

 “Current Insurance Coverage” means medical, dental, life and accident and disability insurance with coverage consistent with the lesser of (i) the coverage in effect at Executive’s termination, or
(ii) the coverage in effect from time to time as applied to persons in positions similar to the position held by Executive at the time of termination. 
 “Disability” means Executive’s incapacity due to physical or mental illness or cause, which results in the Executive being unable to perform his duties with Company on a full-time
basis for a period of six (6) consecutive months. Any dispute as to disability shall be conclusively determined by written opinions rendered by two qualified physicians, one selected by Executive, and one selected by Company; provided that if
such opinions are conflicting, then such physicians shall select a mutually agreeable third physician whose opinion shall be conclusive and binding. 
 “Earned Bonus” means the bonus paid, if any, pursuant to the Company’s incentive compensation plans in effect from time to time. Earned Bonus shall be prorated based on the
ratio of the number of days during such year that Executive was employed to 365. 
 “Good Reason” means the
occurrence of any one or more of the following: 
  

	 	(i)	a material and continuing failure to pay to Executive compensation and benefits (as described in Section 4) that have been earned, if any, by Executive, except failure
to pay or provide compensation or benefits that are in dispute between the Company and the Executive unless such failure continues following the resolution of such dispute; or 

  

	 	(ii)	a material reduction in Executive’s compensation or benefits (as described in Section 4) which is materially more adverse to the Executive than similar reductions
applicable to other executives of a similar level of status within the Company as Executive; or 

  

	 	(iii)	any failure by the Company to comply with any of the material provisions of this Agreement and which is not remedied by the Company within thirty (30) days after receipt of
notice thereof given by Executive; or 

  

	 	(iv)	any requirement that Executive perform duties that, in the good faith and reasonable professional judgment of Executive, after consultation with the Board of Directors of the
Company, are inconsistent with ethical or lawful business practices; or 

  

	 	(v)	Executive’s being required to relocate to a principal place of employment more than one- hundred (100) miles from his current principal place of employment in
Jacksonville, Florida during the Term unless the Company shall pay all reasonable costs and expenses related thereto; or 

  

 3 

	 	(vi)	If following a Change in Control only, there occurs a material change in Executive’s duties, roles, or responsibilities. For purposes of this subsection, “material
change” shall be of such a character that a reasonable person serving in a like or similar executive capacity would feel compelled to resign from employment. Examples of “material change” include, but are not limited to substantial
reduction of Executive’s authority to make decisions relating to his or her business responsibilities; Executive being required to assume or perform substantially greater responsibilities (without additional compensation) than previously
required to perform; substantial reduction of Executive’s responsibilities for personnel matters relating to his or her business operations; substantial alteration or change in Executive’s work schedule; any restructuring or reassignment
of any of the Executive’s responsibilities, in a manner that diminishes them or is materially adverse to the Executive, from that which was in effect at the time of the Change in Control; and other substantial changes in Executive’s terms
or conditions of employment not related to Executive’s principal business responsibilities. Good Reason pursuant to this subsection shall not exist unless (a) the Executive’s “material change” has existed for a period of at
least six months; (b) Executive has consulted with management senior to Executive and his or her supervisor, in a good faith effort to resolve the issues giving Executive reason to believe a “material change” has occurred; and
(c) Executive gives written notice of Executive’s resignation for Good Reason under this paragraph within eight months following the commencement of the “material change”. 

 “Termination Date” means the date of Executive’s termination of employment, or if the Executive continues to provide
services to Stein Mart, Inc. or its 409A affiliates following his termination of employment, such later date as is considered a separation from service from Stein Mart, Inc. and its 409A affiliates within the meaning of Code Section 409A. For
purposes of this Agreement, the Executive’s “termination of employment” shall be presumed to occur when Stein Mart, Inc. and the Executive reasonably anticipate that no further services will be performed by the Executive for Stein
Mart, Inc. and its 409A affiliates or that the level of bona fide services the Executive will perform as an employee of Stein Mart, Inc. and its 409A affiliates will permanently decrease to no more than 20% of the average level of bona fide services
performed by the Executive (whether as an employee or independent contractor) for Stein Mart, Inc. and its 409A affiliates over the immediately preceding 36-month period (or such lesser period of services). Whether the Executive has experienced a
termination of employment shall be determined by Stein Mart, Inc. in good faith and consistent with Section 409A of the Code. Notwithstanding the foregoing, if the Executive takes a leave of absence for purposes of military leave, sick leave or
other bona fide reason, the Executive will not be deemed to have experienced a termination of employment for the first six (6) months of the leave of absence, or if longer, for so long as the Executive’s right to reemployment is provided
either by statute or by contract, including this Agreement; provided that if the leave of absence is due to a medically determinable physical or mental impairment that can be expected to result in death or last for a continuous period of not
less than six (6) months, where such impairment causes the Executive to be unable to perform the duties of his position of employment or any substantially similar position of employment, the leave may be extended by Stein Mart, Inc. for up to
29 months without causing a termination of employment. For purposes hereof, the term “409A affiliate” means each entity that is required to be included in Stein Mart, Inc.’s controlled group of corporations within the meaning of
Section 414(b) of the Code, or that is under common control with Stein Mart, Inc. within the meaning of Section 414(c) of the Code; provided, however, that the phrase “at least 50 percent” shall be used in place of the
phrase “at least 80 percent” each place it appears therein or in the regulations thereunder. 
  

	SECTION 3.	TITLE, POWERS AND RESPONSIBILITIES 

 (a) Title. Executive shall be the Senior Vice-President and Chief Financial Officer of the Company or such other title as designated by the Chief Executive Officer or the Company’s Board of Directors. Executive shall assume
those duties on the Commencement Date. 
  

 4 

 (b) Powers and Responsibilities. 
  

	 	(i)	Executive shall use Executives best efforts to faithfully perform the duties of his employment and shall perform such duties as are usually performed by a person serving in
Executive’s position with a business similar in size and scope as the Company and such other additional duties as may be prescribed from time to time by the Company which are reasonable and consistent with the Company’s operations, taking
into account Executive’s expertise and job responsibilities. Executive agrees to devote Executive’s full business time and attention to the business and affairs of the Company. Executive shall serve on such boards and in such offices of
the Company or its subsidiaries as the Company’s Board of Directors reasonably requests without additional compensation. None of the above should be construed as to prevent Executive from serving on civic and charitable boards or other industry
organizations, business boards and leadership positions as approved by the Company’s Chief Executive Officer. 

  

	 	(ii)	Executive, as a condition to his employment under this Agreement, represents and warrants that he can assume and fulfill responsibilities described in Section 3(b)(i) without
any risk of violating any non-compete or other restrictive covenant or other agreement to which he is a party. During the Employment Term Executive shall not enter into any agreement that would preclude, hinder or impair his ability to fulfill
responsibilities described in Section 3(b)(i) specifically or this Agreement generally. 

  

	SECTION 4	COMPENSATION AND BENEFITS 

 (a)
Annual Base Salary. Executive’s base salary shall be $350,000.00 per year (“Annual Base Salary”) beginning on the Commencement Date, which amount may be periodically reviewed at the discretion of the
Compensation Committee. The Annual Base Salary and any payments to the Executive during any Continuation Period shall be payable in accordance with the Company’s standard payroll practices and policies (unless otherwise expressly provided
herein) and shall be subject to such withholdings as required by law or as otherwise permissible under such practices or policies. 
 (b) Earned Bonus; Incentive Compensation. Executive shall be eligible to receive an Earned Bonus. Executive shall also be eligible to participate in such annual and long term incentive plans as are in effect from time to time as
applicable to persons at Executive’s level of authority and position. Nothing in this Section 4(b) guarantees that any Earned Bonus or other incentive compensation will be paid. In addition: 
  

	 	(i)	for fiscal 2009, Executive shall participate in the 2009 Stein Mart Management Incentive Compensation Plan as though employed for one-half of the entire year and will thus be
eligible to receive fifty percent (50%) of the benefits provided in that plan for 2009; and 

  

	 	(ii)	Executive shall receive options to acquire 30,000 shares of the Company’s common stock under the Stein Mart, Inc. Omnibus Plan (the “Option Plan”) on terms set by the
Board of Directors at an exercise price equal to the closing price of the Company’s shares on NASDAQ as of the Effective Date; which options shall have a term of ten years and to vest 33% on the third anniversary of the Effective Date, 66% on
the fourth anniversary of the Effective Date and 100% on the fifth anniversary of the Effective Date. 

  

 5 

 (c) Employee Benefit Plans. Executive shall be entitled to receive the benefits
described in Schedule A attached hereto, if and for as long as the Company sponsors such plans and such plans remain in effect for other executives with the same level of status as Executive. 
 (d) Stock Options. The Board of Directors, in its discretion, may grant rights to Executive under the Stein Mart, Inc. Omnibus Plan
(the “Option Plan”) on terms set by the Board of Directors or the Compensation Committee. 
 (e) Deferred
Compensation. Executive will participate in the Stein Mart Executive Deferred Compensation Plan (the “Deferred Compensation Plan”). The Company reserves the right to alter, modify, revise or eliminate the Deferred Compensation
Plan provided that any such change to the terms will apply to Executive and similarly situated participants. 
 (f)
Vacation, Holidays and Salary Continuation. Executive shall receive a total of 27 days of paid vacation, or holidays on a pro rata basis during any 365 day period of the Term. The amount may be adjusted in accordance with the
Company’s standard policy or as directed by the Company’s Board of Directors. Any vacation or holiday leave time not used during any 365 day period of the Term will not carry forward to the next 365 period and will be forfeited.

 (g) Expense Reimbursements. Executive shall have the right to expense reimbursements in accordance with the
Company’s standard policy on expense reimbursements as in effect from time to time. 
 (h) Indemnification. With
respect to Executive’s acts or failures to act during his employment in his capacity as an officer, employee or agent of the Company, Executive shall be entitled to indemnification from the Company, and to liability insurance coverage (if any),
on the same basis as other officers of the Company. Executive shall be indemnified by Company, and Company shall pay Executive’s related expenses when and as incurred, all to the full extent permitted by law. Subject to applicable law, the
Company reserves the right to discontinue indemnification in the event the Company determines that the Executive has breached this Agreement or the Executive has advances, or intends to advance, a business or legal position contrary to the
Company’s interests. Notwithstanding the foregoing, Executive shall not be entitled to any indemnification if a judgment or other final adjudication establishes that any act or omission of Executive was material to the cause of action so
adjudicated and that such act or omission constituted: (i) a criminal violation, unless Executive had reasonable cause to believe that Executive’s conduct was lawful or had no reasonable cause to believe that such conduct was unlawful,
(ii) a transaction from which Executive derived an improper personal benefit, or (iii) willful misconduct or a conscious disregard for the best interests of the Company. 
 (i) Automobile Allowance. The Company will pay Executive $1,100 per month (paid quarterly) which shall be used for the lease,
purchase, maintenance and/or operation of a vehicle that Executive is to use for business travel or may use for personal travel. Executive shall be solely responsible for any taxes associated with the automobile allowance afforded to him.

 (j) Other Perquisites. The Company will provide Executive with such other perquisites as may be made generally
available to others in a similar level of executive position within the Company. 
 (k) Relocation Assistance. The
Company will pay Executive a one-time payment of $75,000 on August 15, 2009 to assist the Executive with the relocation of Executive, his family and his principal residence from St. Louis, Missouri to Jacksonville, Florida. Prior to Executive
moving into a permanent residence in Jacksonville, but not to exceed one year from the Effective Date, the Company, at the Company’s expense, shall provide Executive with a furnished apartment located in 

  

 6 

 
Jacksonville, Florida, for the Executive’s exclusive use. In addition, the Company will reimburse the Executive for reasonable (i) costs of
packing, storage and moving Executive’s household goods to Jacksonville, (ii) commercial transportation expenses incurred in the Executive and his spouse traveling between St. Louis, Missouri and Jacksonville, FL three times during the
first ninety (90) days from the Effective Date, and (iii) such other relocation costs as the Company believes appropriate in its sole discretion. Except as expressly set forth in this Section 5(k), the Executive shall not be entitled
to reimbursement for moving or relocation expenses. 
  

	SECTION 5.	TERMINATION OF EMPLOYMENT 

 (a)
General; Non- Renewal. The Board of Directors shall have the right to terminate Executive’s employment and this Agreement at any time with or without Cause, and Executive shall have the right to terminate his employment and this
Agreement at any time with or without Good Reason; provided that obligations under this Section 5, Section 6 and Section 7 shall survive termination of the Agreement. The Board of Directors may delegate its powers to terminate
the Executive to the persons to whom the Executive reports. In the event the Company elects not to renew the Executive’s employment following the end of the Term with compensation and benefits not materially less advantageous to the Executive
than those set forth in this Agreement, but the Executive is willing and able to enter into a renewal of this Agreement with compensation and benefits not materially less advantageous to the Executive than those set forth in this Agreement, then
upon termination of the Executive’s employment, (i) the Company shall pay the Executive his normal base salary for twelve (12) consecutive months beginning six (6) months following the Termination Date (subject in each case to
such withholdings as required by law), and (ii) the Company shall continue until the earlier to occur of the end of the Continuation Period or until such time as the Executive commences a new job, to maintain in effect for such Executive at the
Company’s cost the Executive’s Current Insurance Coverage; provided that if the taxable value of the continued life and accident and disability coverage to Executive during the first six (6) months following the Termination
Date exceeds the annual dollar limit in effect under Code Section 402(g)(1)(B) for the year of such termination, then the Executive shall pay the premiums in excess of such limit for such coverage during such six (6)-month period and after the
end of such six (6)-month period, the Company shall reimburse the Executive for the amount of the premiums paid by the Executive, without interest thereon.  
 (b) Termination by Board of Directors without Cause or by Executive for Good Reason. If (i) the Board of Directors terminates
Executive’s employment without Cause, or (ii) Executive resigns for Good Reason, then in either of those circumstances, the Company’s only obligation to Executive under this Agreement (except as provided in §5(f) hereof) shall be
to pay Executive his earned but unpaid base salary, if any, up to the date of his termination of employment, plus 100% of his current total Annual Base Salary as specified in Section 4(a) (subject to such withholdings as required by law)
payable in periodic payments (consistent with the payroll periods then in effect) for twelve (12) consecutive months beginning six (6) months following the Termination Date. During the Continuation Period the Executive shall also continue
to receive, at the Company’s cost, the Current Insurance Coverage; provided that if the taxable value of the continued life and accident and disability coverage to Executive during the first six (6) months following the Termination Date
exceeds the annual dollar limit in effect under Code Section 402(g)(1)(B) for the year of such termination, then the Executive shall pay the premiums in excess of such limit for such coverage during such six (6)-month period and after the end
of such six (6)-month period, the Company shall reimburse the Executive for the amount of the premiums paid by the Executive, without interest thereon. 
 (c) Termination by the Board of Directors for Cause or by Executive without Good Reason. If the Board of Directors of the Company terminates Executive’s employment for Cause or Executive resigns without
Good Reason, the Company’s only obligation to Executive under this 

  

 7 

 
Agreement shall be to pay Executive his earned but unpaid base salary, if any, up to the date of his termination of employment, and the Company shall have no
obligation to pay any Earned Bonus with respect to the year during which the Termination Date occurs. The Company shall only be obligated to make such payments and provide such benefits under any employee benefit plan, program or policy in which
Executive was a participant as are explicitly required to be paid to Executive by the terms of any such benefit plan, program or policy following the Termination Date. 
 (d) Termination for Disability. Subject to the definitions and requirements of Section 2 (“Disability”), after six
(6) consecutive months of such disability leave of absence, Executive’s service may be terminated by Company. In the event Executive is terminated from employment due to Disability, the Company shall: 
 (i) pay Executive his Annual Base Salary through the end of the month in which his employment terminates as soon as practicable after his employment
terminates; provided that if such payment exceeds the applicable dollar amount in effect under Code Section 402(g)(1)(B) for the year in which such termination occurs, then the payment in excess of such applicable dollar amount shall be
paid following six (6) months after the Executive’s Termination Date; 
 (ii) pay Executive his Earned Bonus, pro rata and
if any, for the fiscal year in which such termination of employment occurs, which amount shall be paid at the same time the Earned Bonus would have been paid had Executive remained in employment; 
 (iii) pay Executive an additional nine (9) months of compensation at the then-Annual Base Salary, which aggregate amount shall be payable in equal
semi-monthly installments beginning six (6) months following the Termination Date and continuing for nine (9) months thereafter; 
 (iv) pay or cause the payment of benefits to which Executive is entitled under the terms of any disability plan of the Company covering the Executive at the time of such Disability: 
 (v) pay premiums for COBRA coverage as provided in Section 5(g); 
 (vi) make such payments and provide such benefits as otherwise called for under the terms of each other employee benefit plan, program and policy in which Executive was a participant; provided no payments made under
Section 5(d)(ii) or Section 5(d)(iii) shall be taken into account in computing any payments or benefits described in this Section 5(d)(iv); and 
 (vii) in the event the Executive has any options or restricted shares (but excluding “performance shares” which shall be governed by the terms set forth in the grant as to such shares) which are not vested
on the date of termination for Disability, then pay to the Executive (i) as to any unvested options, the net value of the excess, if any, of the closing price of the Company’s shares on the NASDAQ for the day on which the termination due
to Disability occurs and the exercise price of such unvested options multiplied by the number of shares subject to options which failed to vest; and (ii) as to any unvested restricted shares, the value of the closing price of the Company’s
shares on the NASDAQ for the day on which the termination due to Disability occurs multiplied by the number of restricted shares, if any, which failed to vest due to such termination of employment for Disability. 
  

 8 

 Notwithstanding the Executive’s Disability, during the period of Disability leave, Executive shall
be paid in full (net of insurance) as if he or she were actively performing services. Executive agrees to simultaneously utilize available leave under the Family and Medical Leave Act of 1993 during such disability leave of absence. During the
period of such Disability leave of absence, the Board of Directors may designate someone to perform Executive’s duties. Executive shall have the right to return to full-time service so long as he is able to resume and faithfully perform his
full-time duties. 
 (e) Death. If Executive’s employment terminates as a result of his death, the Company shall:

 (i) pay to Executive’s estate his Annual Base Salary through the end of the month in which his employment terminates
as soon as practicable after his death; 
 (ii) pay to Executive’s estate his Earned Bonus, when actually determined, for
the year in which Executive’s death occurs; 
 (iii) make such payments and provide such benefits as otherwise called for
under the terms of each other employee benefit plan, program and policy in which Executive was a participant; provided no payments made under Section 5(e)(ii) shall be taken into account in computing any payments or benefits described in this
Section 5(e)(iii); and 
 (iv) in the event the Executive has any options or restricted shares (but excluding
“performance shares” which shall be governed by the terms set forth in the grant as to such shares) which are not vested on the date of termination for death, then pay to the Executive’s estate (i) as to any unvested options, the
net value of the excess, if any, of the closing price of the Company’s shares on the NASDAQ for the day on which the death occurred and the exercise price of such unvested options multiplied by the number of shares subject to options which
failed to vest; and (ii) as to any unvested restricted shares, the value of the closing price of the Company’s shares on the NASDAQ for the day on which the death occurred multiplied by the number of restricted shares, if any, which failed
to vest due to such termination of employment for death. 
 Any amounts payable to Executive under this Agreement which are unpaid at the date
of Executive’s death or payable hereunder or otherwise by reason of his death, shall be paid in accordance with the terms of this Agreement to Executive’s estate; provided that if there is a specific beneficiary designation in place
for any specific amount payable, then payment of such amount shall be made to such beneficiary. 
 (f) Change in
Control. If a Change in Control occurs, then for a period beginning on the occurrence of the Change in Control and ending two years following that occurrence (the “Post Change in Control Period”): 
 (i) In addition to the other events constituting Good Reason under this Agreement, the following shall also constitute Good Reason: if the
Executive is willing and able to continue employment with the Company but the Company exercises its right to either not renew this Agreement, or only offers to renew this Agreement only under conditions or terms which would constitute a
“material change” (as that term is defined in the definition of Good Reason), provided, however, that notice of exercise of the Executive’s termination for Good Reason must be received by the Company during the Post Change in
Control Period and not later than thirty (30) days after the Company exercises its right not to renew this Agreement or to renew the Agreement only on terms which would constitute a “material change”; and 
  

 9 

 (ii) In the event of termination of the Executive’s employment with the Company
pursuant to §5(b) hereof either by the Company without Cause, or by the Executive for Good Reason (as such term is expanded to include the circumstances described in §5(f)(i) above), with notice of such termination given within the Post
Change in Control Period, then the Executive shall receive the following (the “CIC Severance Payments”) in a lump sum payable in funds immediately available in Jacksonville, Florida not earlier than six (6) months following the
Termination Date and not later than seven (7) months following Termination Date: an amount equal to 200% of the sum of (A) the total of severance payments (other than continued insurance coverage) provided under §5(b) of this
agreement (and in lieu thereof), and (B) the Earned Bonus in the year of the Termination Date. For purposes of this subsection (f) Earned Bonus shall not be prorated and shall be an amount equal to “Target” bonus as defined in
the Company’s incentive compensation plan in effect from time to time. 
 (g) Benefit Continuation. Provided
Executive is eligible for COBRA coverage, and has not been terminated from employment for Cause or resigned without Good Reason, then the Company shall pay the Executive’s COBRA premiums commencing on the date of the Executive’s
termination of employment and continuing for the applicable Continuation Period in order to continue Executive’s health insurance coverage and maintain such coverage in effect; provided that following the end of the COBRA continuation period,
if Executive’s health insurance coverage is provided under a health plan that is subject to Code Section 105(h), benefits payable under such health plan shall comply with the requirements of Treasury Regulation
Section 1.409A-3(i)(1)(iv) and, if necessary, the Company shall amend such health plan to comply therewith. 
 (h)
Relinquishment of Corporate Positions. Executive shall automatically cease to be an officer and/or director of the Company and its affiliates as of his date of termination of employment. 
 (i) Limitation. Anything in this Agreement to the contrary notwithstanding, Executive’s entitlement to or payments under any
other plan or agreement shall be limited to the extent necessary so that no payment to be made to Executive on account of termination of his employment with the Company will be subject to the excise tax imposed by Code Section 4999, but only
if, by reason of such limitation, Executive’s net after tax benefit shall exceed the net after tax benefit if such reduction were not made. “Net after tax benefit” shall mean (i) the sum of all payments and benefits that
Executive is then entitled to receive under any section of this Agreement or other plan or agreement that would constitute a “parachute payment” within the meaning of Section 280G of the Code, less (ii) the amount of federal
income tax payable with respect to the payments and benefits described in clause (i) above calculated at the maximum marginal income tax rate for each year in which such payments and benefits shall be paid to Executive (based upon the rate in
effect for such year as set forth in the Code at the time of the first payment of the foregoing), less (iii) the amount of excise tax imposed with respect to the payments and benefits described in clause (i) above by Section 4999 of
the Code. Any limitation under this Section 5(i) of Executive’s entitlement to payments shall be made in the manner and in the order directed by Executive. 
  

	SECTION 6.	COVENANTS BY EXECUTIVE 

 (a)
Company Property. Upon the termination of Executive’s employment for any reason, Executive shall promptly return all Company Property which had been entrusted or made available to Executive by the Company. “Property”
means all records, files, memoranda, communication, reports, price lists, plans for current or prospective business operations, customer lists, drawings, plans, sketches, keys, codes, computer hardware and software and other property of any kind or
description prepared, used or possessed by Executive during Executive’s employment by the Company (and any duplicates of any such Property) together with any and all information, ideas, concepts, discoveries, processes, intellectual property,
inventions and the like conceived, made, developed or acquired at any time by Executive individually or with others during Executive’s employment which relate to the Company or its products or services or operations. 
  

 10 

 (b) Trade Secrets. Executive agrees that Executive shall hold in a fiduciary
capacity for the benefit of the Company and shall not directly or indirectly use or disclose any Trade Secret that Executive may have acquired during the term of Executive’s employment by the Company for so long as such information remains a
Trade Secret. “Trade Secret” means information, including, but not limited to, technical or non-technical data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a drawing or a process that
(1) derives economic value, actual or potential, from not being generally known to, and not being generally readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use and (2) is the
subject of reasonable efforts by the Company to maintain its secrecy. This Section 6(b) is intended to provide rights to the Company which are in addition to, not in lieu of, those rights the Company has under the common law or applicable
statutes for the protection of trade secrets. 
 (c) Confidential Information. During the Employment Term and
continuing thereafter indefinitely, Executive shall hold in a fiduciary capacity for the benefit of the Company, and shall not directly or indirectly use or disclose, any Confidential Information that Executive may have acquired (whether or not
developed or compiled by Executive and whether or not Executive is authorized to have access to such information) during the term of, and in the course of, or as a result of Executive’s employment by the Company without the prior written
consent of the Board of Directors unless and except to the extent that such disclosure is (i) made in the ordinary course of Executive’s performance of his duties under this Agreement or (ii) required by any subpoena or other legal
process (in which event Executive will give the Company prompt notice of such subpoena or other legal process in order to permit the Company to seek appropriate protective orders). “Confidential Information” means any secret,
confidential or proprietary information possessed by the Company or any of its subsidiaries or affiliates, including, without limitation, trade secrets, customer or supplier lists, details of client or consultant contracts, current and anticipated
customer requirements, pricing policies, price lists, market studies, business plans, operational methods, marketing plans or strategies, advertising campaigns, information regarding customers or suppliers, computer software programs (including
object code and source code), data and documentation data, base technologies, systems, structures and architectures, inventions and ideas, past current and planned research and development, compilations, devices, methods, techniques, processes,
financial information and data, business acquisition plans and new personnel acquisition plans and the terms and conditions of this Agreement that has not become generally available to the public. 
 (d) Non-Competition. Executive recognizes that his duties will entail the receipt of Trade Secrets and Confidential Information as
defined in this Section 6. Those Trade Secrets and Confidential Information have been developed by the Company at substantial cost and constitute valuable and unique property of the Company. Accordingly, the Executive acknowledges that
protection of Trade Secrets and Confidential Information is a legitimate business interest. Executive agrees not to compete with the Company during the Employment Term and for a reasonable and limited period thereafter. Therefore, during the
Employment Term and during the applicable Continuation Period thereafter (or, in the event of as termination for Cause by the Company or without Good Reason by the Executive, a period of two (2) years following the Termination Date), the
Executive shall not have an investment of $100,000.00 or more in a Competing Business (as defined herein) and shall not render personal services to any such Competing Business in any manner, including, without limitation, as owner, partner,
director, trustee, officer, employee, consultant or advisor thereof. If the Executive shall breach the covenants contained in this Non-Competition provision, the Company shall have no further obligation to make any payment to the Executive pursuant
to this Agreement and may recover from the Executive all such damages as it may be entitled to at law or in equity. In addition, the Executive acknowledges that any such breach is likely to result in irreparable harm to the Company. The Company
shall be entitled to specific performance 

  

 11 

 
of the covenants in this Section 6, including entry of a temporary restraining order in state or federal court, preliminary and permanent injunctive
relief against activities in violation of this Section 6, or both, or other appropriate judicial remedy, writ or order, in addition to any damages and legal expenses which the Company may be legally entitled to recover. Executive acknowledges
and agrees that the covenants in this Section 6 shall be construed as agreements independent of any other provision of this Agreement or any other agreement between the Company and Executive, and that the existence of any claim or cause of
action by Executive against the Company, whether predicated upon this Agreement or any other agreement, shall not constitute a defense to the enforcement by the Company of such covenants. The provisions of this subsection (d) shall not be
applicable to Executive if Executive is terminated from employment without Cause or the Executive resigns from employment for Good Reason 
 (e) Non-Solicitation. During the Employment Term and for a period of two years hereafter (such period is referred to as the “No Recruit Period”), the Executive will not solicit, either directly or
indirectly, any person that he knows or should reasonably know to be an employee of the Company, whether any such employees are now or hereafter through the No Recruit Period so employed or engaged to terminate their employment with the Company. The
foregoing is not intended to limit any legal rights or remedies that any employee of the Company may have under common law with regard to any interference by Executive at any time with the contractual relationship the Company may have with any of
its employees. 
 (f) Reasonable and Continuing Obligations. Executive agrees that Executive’s obligations under
this Section 6 are obligations which will continue beyond the date Executive’s employment terminates and that such obligations are reasonable, fair and equitable in scope. The terms and duration are necessary to protect the Company’s
legitimate business interests and are a material inducement to the Company to enter into this Agreement. Executive further acknowledges that the consideration for this Section 6 is his employment or continued employment. Executive will not be
paid any additional compensation during this Restricted Period for application or enforcement of the restrictive covenants contained in this Section 6. 
 (g) Work Product. The term “Work Product” includes any and all information, programs, concepts, processes, discoveries,
improvements, formulas, know-how and inventions, in any form whatsoever, relating to the business or activities of the Company, or resulting from or suggested by any work developed by the Executive in connection with the Company, or by the Executive
at the Company’s request. Executive acknowledges that all Work Product developed during the Term is property of the Company and accordingly, Executive does hereby irrevocably assign all Work Product developed by the Executive to the Company and
agrees: (a) to assign to the Company, free from any obligation of the Company to the Executive, all of the Executive’s right, title and interest in and to Work Product conceived, discovered, researched, or developed by the Executive either
solely or jointly with others during the term of this Agreement and for three (3) months after the termination or nonrenewal of this Agreement; and (b) to disclose to the Company promptly and in writing such Work Product upon the
Executive’s acquisition thereof. 
  

	SECTION 7.	MISCELLANEOUS 

 (a) Notices.
Notices and all other communications shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by United States registered or certified mail. Notices to the Company shall be sent to: 
 STEIN MART, INC 
 Attention: General
Counsel 
 1200 Riverplace Boulevard, 10th Floor 
 Jacksonville, FL 32207 
 Facsimile: (904) 346-1297 
  

 12 

 Notices and communications to Executive shall be sent to the address Executive most recently provided to
the Company. 
 (b) No Waiver. No failure by either the Company or Executive at any time to give notice of any breach
by the other of, or to require compliance with, any condition or provision of this Agreement shall be deemed a waiver of any provisions or conditions of this Agreement. 
 (c) Governing Law. This Agreement shall be governed by Florida law without reference to the choice of law principles thereof.

 (d) Assignment. This Agreement shall be binding upon and inure to the benefit of the Company and any successor in
interest to the Company or any segment of such business. The Company may assign this Agreement to any affiliate or successor that acquires all or substantially all of the assets and business of the Company or a majority of the voting interests of
the Company. The Company will require any successor (whether direct or indirect, by operation of law, by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of Company) to expressly assume and agree
to perform this Agreement in the same manner and to the same extent that Company would be required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean Company as defined above and, unless
the context otherwise requires, any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise. Executive’s rights and obligations under this Agreement are personal
and shall not be assigned or transferred. 
 (e) Other Agreements. This Agreement replaces and merges any and all
previous agreements and understandings regarding all the terms and conditions of Executive’s employment relationship with the Company, and this Agreement constitutes the entire agreement between the Company and Executive with respect to such
terms and conditions. 
 (f) Amendment. No amendment to this Agreement shall be effective unless it is in writing and
signed by the Company and by Executive. 
 (g) Invalidity and Severability. If any part of this Agreement is held by a
court of competent jurisdiction to be invalid or otherwise unenforceable, the remaining part shall be unaffected and shall continue in full force and effect, and the invalid or otherwise unenforceable part shall be deemed not to be part of this
Agreement. 
 (h) Litigation. In the event that either party to this Agreement institutes litigation against the other
party to enforce his or its respective rights under this Agreement, each party shall pay its own costs and expenses incurred in connection with such litigation. As a material part of the consideration for this Agreement, BOTH PARTIES HERETO WAIVE
ANY RIGHT TO A TRIAL BY A JURY in the event of any litigation arising from this Agreement. All legal actions arising out of or connected with this Agreement must be instituted solely in the Circuit Court of Duval County, Florida, or in the Federal
District Court for the Middle District of Florida, Jacksonville Division, and all parties hereto do hereby agree to submit to the exclusive personal jurisdiction of such courts. Each of the parties hereby expressly and irrevocably submits to the
jurisdiction of such courts for the purposes of any such action and expressly and irrevocably waives, to the fullest extent permitted by law, any objection which it may have or hereafter may have to the laying of venue of any such action brought in
any such court and any claim that any such action has been brought in an inconvenient forum. 
 (i) Counterparts. This
Agreement may be executed in counterparts each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  

 13 

 IN WITNESS WHEREOF, the Company and Executive have executed this Agreement effective as of the
Effective Date. 
  

							
	STEIN MART, INC.	 		 	EXECUTIVE
				
	By:	 	 /s/ D. Hunt Hawkins
	 		 	 /s/ Gregory W. Kleffner

	Name:	 	D. Hunt Hawkins	 		 	Gregory W. Kleffner
	Title:	 	Executive Vice President, Chief Administrative Officer	 		 	
	Date:	 	August 5, 2009	 		 	Date: August 3, 2009

  

 14 

 SCHEDULE A 
 BENEFITS 
  

	1.	Retirement Plan/Life Insurance/AD&D 

 The
Executive shall be entitled to participate in all retirement plans and will be entitled to life insurance and AD&D benefits which other senior executives of the Company or affiliates of the Company are eligible. 
  

	2.	Long-Term Disability 

 The Executive shall be
entitled to participate in all Long-Term and Life Time Disability plans which other senior executives of the Company or affiliates of the Company are eligible. 
  

	3.	Medical/Dental Benefits 

 The Executive shall be
entitled to medical/dental benefits which other senior executives of the Company or affiliates of the Company are eligible. 
  

 A-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00162-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00162-of-00352.parquet"}]]