Document:

Amended and Restated Stock Purchase Agreement

 Exhibit 10.1 
 STOCK PURCHASE AGREEMENT 
 This Agreement is made and entered into as of this 10th day of June 2008, by UTEK
Corporation, a Delaware corporation having its principal offices at 2109 East Palm Ave., Tampa, Florida 33605 (the “Purchaser”); and the several persons whose names and addresses are set out in SCHEDULE 3.1 (the “Sellers”)
and Innovaro Ltd, a company incorporated in England and Wales with company number 04125960 whose registered office is at 10 Winsley Court, 37 Portland Place, London, England (the “Company”). 
 WITNESSETH: 
 WHEREAS, the Sellers are
the owners of all of the Company’s issued share capital; 
 WHEREAS, the Purchaser desires to acquire the Company and the Seller desires to sell
the Company upon the terms and subject to the conditions set forth herein; 
 NOW, THEREFORE, in consideration of the premises, the mutual
representations, warranties, covenants and agreements hereinafter contained, and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties agree as follows:

  

	1	INTERPRETATION  

  

	1.1	The definitions and rules of interpretation in this clause apply in this Agreement. 

 Accounts: the audited financial statements of the Company as at and to the Accounts Date, including the balance sheet, profit and loss account together with the notes thereon, the cash flow statement and
the auditor’s and Directors’ reports. 
 Accounts Date: 31 December 2007. 
 AIM: means the Alternative Investment Market of the London Stock Exchange. 
 AIM Rules: the AIM Rules for Companies which set out the rules and responsibilities in relation to companies with a class of securities
admitted to AIM. 
 American Stock Exchange: American Stock Exchange LLC. 
 AMEX Rules: the American Stock Exchange Rules for Companies which set out the rules and responsibilities in relation to companies with a
class of securities admitted to the American Stock Exchange. 
 Bonus Plan: the post Completion bonus plan for the Company’s
employees appended to this Agreement at Exhibit 8.1.3 

 Business: the business of the Company, namely the provision of consultancy and insight
services in the sphere of innovation and corporate know-how. 
 Business Day: a day (other than a Saturday, Sunday or public
holiday) when banks in the City of London are open for business. 
 Claim and Substantiated Claim: have the meanings set out
respectively in clause 9. 
 Companies Acts: the Companies Act 1985 and the Companies Act 2006. 
 Completion: completion of the sale and purchase of the Sale Shares in accordance with this agreement. 
 Completion Date: has the meaning given in clause 5. 
 Completion Payment: has the meaning given in clause 4.1. 
 Conditions: the
conditions set out in clause 2. 
 Connected: in relation to a person, has the meaning given in section 839 of ICTA 1988.

 Consideration Shares: the unregistered common stock of US$0.01 each of the Purchaser to be allotted and issued credited as
fully paid to the Sellers in satisfaction of the Purchase Price and in accordance with the terms of this Agreement. 
 Control:
in relation to a body corporate, the power of a person to secure that the affairs of the body corporate are conducted in accordance with the wishes of that person: 
  

	 	(a)	by means of the holding of shares, or the possession of voting power, in or in relation to that or any other body corporate; or 

  

	 	(b)	by virtue of any powers conferred by the constitutional or corporate documents, or any other document, regulating that or any other body corporate, 

 and a Change of Control occurs if a person who controls any body corporate ceases to do so or if another person acquires Control of it. 

Deferred Payment and Deferred Payment Maximum: have the meanings given in clause 4. 
 Designated Bank Accounts: means the Company’s bank accounts with HSBC Bank PLC, sort code 40-01-15 account numbers 01373749, 51373730 ,
51390163 , 61400622, 57493079 and any other bank account notified as such by the Purchaser to the Sellers and which relates solely to the Company or any Subsidiary of the Company. 
 Earn out Period: has the meaning given in Schedule 4.2 
 Eligible Earnings: has the meaning given in the Bonus Plan. 
 Encumbrance: any interest
or equity of any person (including any right to acquire, option or right of pre-emption) or any mortgage, charge, pledge, lien, assignment, hypothecation, security, title, retention or any other security agreement or arrangement. 
 Escrow Agent: has the meaning given in Schedule 4.2 
 Exemption Percentage: has the meaning given in the Bonus Plan. 
  

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 Group: in relation to a company (wherever incorporated), that company, any company of which
it is a Subsidiary (its holding company) and any other Subsidiaries of any such holding company; and each company in a group is a member of the group. 
 Unless the context requires otherwise, the application of the definition of Group to any company at any time will apply to the company as it is at that time. 
 ICTA 1988: the Income and Corporation Taxes Act 1988. 
 London Stock Exchange: London Stock Exchange plc. 
 Management Accounts: the
unaudited balance sheet and the unaudited consolidated profit and loss account of the Company for the period of 5 months ended 31 May 2008. 
 Purchase Price: the purchase price for the Sale Shares to be paid or satisfied in accordance with clause 4. 
 Relevant Turnover: has the meaning given in Schedule 4.2 
 SA 1933: the Securities Act 1933 as administered by
the United States Securities and Exchange Commission. 
 Sale Shares: the 10,000 Ordinary shares of GBP1 each in the Company,
all of which have been issued and are fully paid. 
 Sellers’ Solicitors: Vincent Sykes & Higham LLP of Montague
House, Chancery Lane, Thrapston, Northamptonshire, NN14 4LN. 
 Subsidiary: in relation to a company wherever incorporated (a
holding company) means a “subsidiary” as defined in section 1159 of the Companies Act 2006 and any other company which is a subsidiary (as so defined) of a company which is itself a subsidiary of such holding company. 
 Unless the context requires otherwise, the application of the definition of Subsidiary to any company at any time will apply to the company as it is at
that time. 
 Transaction: the transaction contemplated by this agreement or any part of that transaction. 
 Warranties: the representations and warranties in clause 6. 
  

	1.2	Clause and schedule headings do not affect the interpretation of this agreement. 

  

	1.3	A person includes a corporate or unincorporated body. 

  

	1.4	Words in the singular include the plural and in the plural include the singular. 

  

	1.5	A reference to one gender includes a reference to the other gender. 

  

	1.6	A reference to a particular statute, statutory provision or subordinate legislation is a reference to it as it is in force from time to time taking account of any amendment or re-
enactment and includes any statute, statutory provision or subordinate legislation which it amends or re-enacts and subordinate legislation for the time being in force made under it. 

  

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	1.7	Writing or written includes faxes but not e-mail. 

  

	1.8	Documents in agreed form are documents in the form agreed by the parties or on their behalf and initialled by them or on their behalf for identification.

  

	1.9	References to clauses and schedules are to the clauses and schedules of this Agreement; references to paragraphs are to paragraphs of the relevant schedule.

  

	1.10	Unless otherwise expressly provided, the obligations and liabilities of the Sellers under this agreement are joint and several. 

  

	1.11	Reference to this Agreement include this Agreement as amended or varied in accordance with its terms. 

  

	2.	CONDITION 

  

	2.1	Completion of this Agreement is subject to the following condition (“Condition”) being satisfied at Completion: 

  

	2.1.1	The admission by American Stock Exchange of the Consideration Shares to AMEX becoming effective in accordance with AMEX Rules. 

  

	3.	SALE OF SHARES 

  

	3.1	Subject to and upon the terms and conditions hereinafter set forth and in reliance upon the representations and warranties contained herein, the Sellers hereby sell, assign,
transfer and deliver to Purchaser, free and clear of all liens, claims, and encumbrances, and the Purchaser agrees to purchase from the Sellers, all of the Sale Shares. The Sale Shares are owned by the Seller in the respective amounts set forth in
SCHEDULE 3.1. 

  

	3.2	Each of the Sellers severally waives any right of pre-emption or other restriction on transfer in respect of the Sale Shares or any of them conferred on him under the articles of
association of the Company or otherwise and shall, before Completion, procure the irrevocable waiver of any such right or restriction conferred on any other person who is not a party to this agreement. 

  

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	3.3	The Purchaser is not obliged to complete the purchase of any of the Sale Shares unless the purchase of all the Sale Shares is completed simultaneously. 

  

	4.	PRICE AND CONSIDERATION 

  

	4.1	The Purchase Price to be paid by Purchaser for the Sale Shares is: 

  

	4.1.1	GBP1,875,000 to be satisfied by the issue and delivery by the Purchaser on Completion to the Sellers of such number of Consideration Shares credited as fully paid, as shall have an
aggregate value determined in accordance with clause 4.4 of GBP1,875,000 apportioned between the Sellers in the proportions set out opposite their respective names in Schedule 3.1 (“Completion Payment”); and

  

	4.1.2	Further payments in Consideration Shares credited as fully paid as shall be calculated, determined, protected and paid in accordance with schedule 4.2. (each a “Deferred
Payment” and together “Deferred Payments”). The sum of the Deferred Payments shall never exceed such number of Consideration Shares as shall have an aggregate value determined in accordance with clause 4.4 of GBP1,875,000
(the “Deferred Payment Maximum”). 

  

	4.2	The Completion Payment and Deferred Payments shall be paid to the Sellers in the proportions set out opposite the Seller’s names in Schedule 4.2 

  

	4.3	The procedure and other terms for making the Deferred Payments are set out in Schedule 4.2 

  

	4.4	For the purposes of clause 4.1: 

  

	4.4.1	the Consideration Shares shall rank pari passu with the existing unregistered common stock of £0.01 each in the capital of the Purchaser, including the right to receive all
dividends declared made or paid after Completion (save that they shall not rank for any dividend or other distribution of the Purchaser declared made or paid by reference to a record date before Completion); and 

  

	4.4.2	the value of each Consideration Share shall be a sum equal to the average daily closing price for an unregistered ordinary share of the Purchaser as shown on the American Stock
Exchange for each of the last twenty Business Days preceding the date of this agreement. 

  

	4.5	The Purchase Price shall be deemed to be reduced by the amount of any payment made to the Purchaser for a breach of the Warranties or any one of them. 

  

	4.6	The Sellers undertake that they shall not, during a period of 12 months after issue of the Consideration Shares representing the Completion Payment and six months after delivery to
them of the Consideration Shares representing the Deferred Payments, without the prior written consent of the Purchaser, dispose of or create any Encumbrance over the relevant Consideration Shares (or agree to do so). 

  

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	4.7	Clause 4.6 does not prevent a Seller from disposing of any Consideration Shares in the following circumstances except to the extent prohibited by the provisions of SA 1933 or
otherwise at law: 

  

	4.7.1	where such disposal is made in the acceptance of any offer made in accordance with the City Code on Takeovers and Mergers (or any US equivalent) by any third party for the whole of
the ordinary share capital of the Purchaser (other than any common stock owned by the offeror or any concert party of the offeror) which is recommended by a majority of the board of directors of the Purchaser; or 

  

	4.7.2	where such disposal is made in the execution of an irrevocable commitment to accept any offer made in accordance with the City Code on Takeovers and Mergers (or any US equivalent)
for the whole of the common stock of the Purchaser (other than any common stock owned by the offeror or any concert party of the offeror) which is recommended by a majority of the board of directors of the Purchaser; or 

  

	4.7.3	where such disposal is made pursuant to an offer by the Purchaser to purchase its own shares which is made on identical terms to all holders of ordinary shares in the Purchaser and
otherwise complies with the AMEX Rules or the AIM Rules as appropriate; or 

  

	4.8	For the purposes of clause 4.6 and clause 4.7, Consideration Shares shall include any shares held by the Sellers arising out of the consolidation, conversion or subdivision of
Consideration Shares and any shares acquired by reference to the Consideration Shares, whether by way of bonus or rights issue, pre-emption right or otherwise or in exchange or substitution for any such Consideration Shares.

  

	4.9	Notwithstanding the foregoing the Sellers shall be entitled to return to the Purchaser for cancellation Consideration Shares in satisfaction in whole or in part of any liability
that they might have to the Purchaser or the Company arising out of any of the matters referred to in clause 4.5 or otherwise arising under this Agreement. For this purpose the value of each Consideration Share returned shall be a sum equal to the
average of the middle market quotations for an unregistered ordinary share of the Purchaser as shown on the American Stock Exchange for each of the last twenty Business Days preceding the date that the relevant Consideration Shares are returned for
cancellation. 

  

	4.10	 Securities Act Compliance; Registration; Securities Act Exemption. The Sellers understand that the common stock which shall comprise the Purchase Price has not been
and shall not be registered under SA 1933 on the grounds that the issuance of the 

  

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common stock is exempt from registration pursuant to Section 4(2) of SA 1933 and that the reliance of Purchaser on such exemptions is predicated in part
on Sellers’ representations, warranties, covenants and acknowledgments set forth in this Agreement. The Sellers’ acknowledge that : (A) Purchaser made no assurances that a public market will continue to exist, (B) the common
stock is a highly speculative investment involving a high degree of risk, (C) they are able, without impairing their financial condition, to hold the common stock for an indefinite period of time and suffer the complete loss thereof, and
(D) after twelve months and one day in relation to the Completion Payment and six months and one day in relation to the Deferred Payments from the effective time, the exemption available through Rule 144 of SA 1933 may be accessed by Seller,
provided all of the terms and conditions of such exemption have been met. Additionally, the Sellers (A) acknowledge that the common stock issued to Seller must be held at least twelve months plus one day after the shares have been issued in
relation to the Completion Payment and six months and one day in relation to the Deferred Payments and (B) are aware that any routine sales of common stock made pursuant to Rule 144 under SA 1933 may be made only in limited amounts and in
accordance with the terms and conditions of that rule. All shares of the common stock shall bear a restrictive legend in substantially the following form: 

 “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “1933 ACT”) AND MAY ONLY BE SOLD OR
OTHERWISE TRANSFERRED IF THE HOLDER HEREOF COMPLIES WITH THE 1933 ACT AND APPLICABLE SECURITIES LAWS” 
  

	4.11	Where a Seller wishes to dispose of any Consideration Share and it is legitimate to do so in accordance with applicable legislation and this Agreement the Purchaser shall promptly
upon a Seller’s request provide all reasonable co-operation in the form of an opinion letter from Purchaser’s counsel to the Seller’s transfer agent or otherwise to ensure the prompt removal of the restrictive legend.

  

	5.	COMPLETION 

  

	5.1	Completion shall take place on the Completion Date: 

  

	5.1.1	at the offices of the Company at 3pm UK time; or 

  

	5.1.2	at any other place or time as agreed in writing by the Sellers and the Purchaser. 

  

	5.2	Completion Date means July 1, 2008 but: 

  

	5.2.1	if the Condition has not been satisfied or waived in accordance with clause 2.1 on or before that date, means: 

  

	 	(a)	the first Business Day after it has been satisfied or waived; or 

  

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	 	(b)	any other date agreed in writing by the Sellers and the Purchaser; or 

  

	5.2.2	if Completion is deferred in accordance with clause 5.2 means the date to which it is deferred. 

  

	5.3	The Sellers undertake to the Purchaser that the Business shall be conducted in the normal course from the date of this Agreement until Completion. 

  

	5.4	At or prior to Completion the Purchaser shall: 

  

	5.4.1	procure that a meeting of the board of directors is convened at which the Consideration Shares are issued, subject to the Conditions; 

  

	5.4.2	issue and deliver to the Sellers the Consideration Shares representing the Completion Payment in accordance with clause 4.1.1; 

  

	5.4.3	issue to the Sellers and deliver to the Escrow Agent the Consideration Shares representing the Deferred Payments Maximum in accordance with clause 4.1.2 and Schedule 4.2;

  

	5.4.4	deliver a certified copy of the resolutions passed by shareholders of the Purchaser giving general authority to the directors of the Purchaser to allot and issue the Consideration
Shares; 

  

	5.4.5	deliver a certified copy of the resolution adopted by the board of directors of the Purchaser authorising the transaction, the allotment and issue of the Consideration Shares and
the execution and delivery by the officers specified in the resolution of this Agreement, and any other documents referred to in this Agreement as being required to be delivered by it; and 

  

	5.4.6	deliver a copy of a letter from the American Stock Exchange confirming that the Consideration Shares have been admitted to the American Stock Exchange. 

  

	5.5	At or prior to Completion the Sellers shall undertake the actions as provided in Clause 8 Exchange of Consideration. 

  

	6.	REPRESENTATIONS AND WARRANTIES. 

  

	6.1	The Sellers make the following representations and warranties to the Purchaser as an inducement for it to enter into this Agreement. 

  

	6.1.1	Organization and Good Standing of the Company. The Company is a corporation duly organized, validly existing and in good standing under the laws of England and Wales, and is
legally qualified to transact business in each jurisdiction where the failure to so qualify would have an adverse effect on the business of the Company. 

  

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	6.1.2	Authority. 

 (a) The Company has full power and
authority (corporate and otherwise) to carry on its business and has all permits and licenses that are necessary to the conduct of its business or to the ownership, lease or operation of its properties and assets. 
 (b) The execution of this Agreement and the delivery hereof to the Purchaser and the sale contemplated herein have been duly authorized by the
Company’s Board of Directors and by the Company’s shareholders having full power and authority to authorize such actions. 
 (c)
Subject to any consents required under Subclause 6.7 below, the Seller and the Company have the full legal right, power and authority to execute, deliver and carry out the terms and provisions of this Agreement; and this Agreement has been duly
and validly executed and delivered on behalf of Seller and the Company and constitutes a valid and binding obligation of each Seller and the Company enforceable in accordance with its terms. 
 (d) Neither the execution and delivery of this Agreement, the consummation of the transactions herein contemplated, nor compliance with the terms of this
Agreement will violate, conflict with, accelerate any obligations under, result in a breach of, or constitute a default under any statute, regulation, indenture, mortgage, loan agreement, or other agreement or instrument to which the Company or any
Seller is a party or by which it or any of them is bound, any charter, regulation, or by-law provision of the Company, or any decree, order, or rule of any court or governmental authority or arbitrator that is binding on the Company or any Seller in
any way. 
  

	6.1.3	Sale Shares. 

 (a) The Company’s authorized share
capital consists of 10,000 ordinary shares, par value one pound sterling per share, of which 10,000 shares have been issued to the Sellers and constitute the Sale Shares as defined above. All of the Sale Shares are duly authorized, validly issued,
fully paid and non-assessable. 
 (b) The Sellers are the lawful record and beneficial owners of all the Sale Shares as set forth on
SCHEDULE 3.1, free and clear of any liens, pledges, encumbrances, charges, claims or restrictions of any kind, and have the absolute, unilateral right, power, authority and capacity to enter into and perform this Agreement without any other
or further authorization, action or proceeding, except as specified herein. The Seller are not citizens of the United States and no shares of the Company have ever been owned by a resident person of the United States. The term “Person”
shall mean any individual, corporation, general partnership, limited partnership, limited liability partnership, joint venture, estate, trust, company (including any limited liability company or joint stock company), firm or other enterprise,
association, organization, or entity. 
 (c) There are no authorized or outstanding subscriptions, options, warrants, calls, contracts,
demands, commitments, convertible securities or other agreements or 

  

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arrangements of any character or nature whatever under which any Seller or the Company are or may become obligated to issue, assign or transfer any shares of
capital stock of the Company. 

  

	6.1.4	Basic Corporate Records. The copies of the Memorandum and Articles of Association of the Company (certified as of the date of this Agreement as true, correct and complete by
the Company’s secretary), all of which have been delivered to the Purchaser, are true, correct and complete as of the date of this Agreement. 

  

	6.1.5	Minute Books. The minute books of the Company each contain true, correct and complete minutes and records of all meetings, proceedings and other actions of the shareholders,
Board of Directors and committees of the Board of Directors from the date of organization to the date hereof. 

  

	6.1.6	Subsidiaries and Affiliates. The Company has no subsidiaries and there are no businesses, entities, enterprises and organizations in which the Company has any ownership,
voting or profit and loss sharing percentage interest, provided, further, that (i) the Company has made no advances to, or investments in, nor owns beneficially or of record, any securities of or other interest in, any business, entity,
enterprise or organization, (ii) there are no arrangements through which the Company has acquired from, or provided to, any of the Seller or their affiliates any goods, properties or services, and (iii) there are no rights, privileges or
advantages now enjoyed by the Company as a result of the ownership of the Company by the Seller which, to the knowledge of the Seller or the Company, might be lost as a result of the consummation of the transactions contemplated by this Agreement.

  

	6.1.7	Consents. No consents or approvals of any public body or authority and no consents or waivers from other parties to leases, licenses, franchises, permits, indentures,
agreements or other instruments are (i) required for the lawful consummation of the transactions contemplated hereby, or (ii) necessary in order that the Business can be conducted by the Purchaser in the same manner after the date hereof
as heretofore conducted by the Company, nor will the consummation of the transactions contemplated hereby result in creating, accelerating or increasing any liability of the Company. 

  

	6.1.8	Accounts. Attached hereto as SCHEDULE 6.1.8 are true and complete copies of the Company’s Accounts as at the Accounts Date. The Accounts, including the notes
thereto, have been prepared in accordance with generally accepted accounting principles consistently applied by the Company according to past practice throughout the periods indicated. The Accounts are complete and correct in all respects and fairly
present the financial condition and the results of operations of the Company as at the dates and for the periods indicated. The Management Accounts, attached hereto as Schedule 6.1.8 (a) including the notes thereto, are true and complete copies
of the management accounts and have been prepared in accordance with generally accepted accounting principles consistently applied by the Company according to past practice throughout the periods indicated. The Management Accounts are complete and
correct in all respects and fairly present the financial condition and the results of operations of the Company as at the dates and for the periods indicated. 

  

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	6.1.9	Records and Books of Account. The records and books of account of the Company reflect all material items of income and expense and all material assets, liabilities and
accruals, and have been regularly kept and maintained in conformity with generally accepted accounting principles applied on a consistent basis with preceding years. 

  

	6.1.10	Absence of Undisclosed Liabilities. Except as and to the extent reflected or reserved against in the Company’s Accounts as of the Accounts Date, there are no liabilities
or obligations of the Company of any kind whatsoever, whether accrued, fixed, absolute, contingent, determined or determinable, and including without limitation (i) liabilities to former, retired or active employees of the Company under any
pension, health and welfare benefit plan, vacation plan or other plan of the Company, (ii) tax liabilities incurred in respect of or measured by income for any period prior to the close of business on the Accounts Date, or arising out of
transactions entered into, or any state of facts existing, on or prior to said date, and (iii) contingent liabilities in the nature of an endorsement, guarantee, indemnity or warranty, and there is no condition, situation or circumstance
existing or which has existed that could reasonably be expected to result in any liability of the Company, other than liabilities and contingent liabilities incurred in the ordinary course of business since the Accounts Date consistent with the
Company’s recent customary business practice, none of which is materially adverse to the Company. 

  

	6.1.11	Tax Matters. Except as set forth in SCHEDULE 6.1.11, the sum of the reserves for current and deferred national and local tax liabilities in the Accounts as of the
Accounts Date are sufficient for the payment of all United Kingdom, foreign, state, county and local taxes of the Company (including interest and penalties to the Accounts Date) whether or not disputed, for all its fiscal years and accounting
periods ended on or before the Accounts Date, which (i) are shown on a Return of the Company (as defined below), (ii) have been asserted by a taxing authority against the Company, or (iii) are otherwise owed by the Company with
respect to its operations or property conducted or held on or prior to the Accounts Date. The Company’s United Kingdom and all other local income tax, franchise tax, any foreign tax, and other business tax returns, if any, have been examined by
the Inland Revenue Service and/or by the appropriate Local or foreign tax commissions as set forth in SCHEDULE 6.1.11. The results of such examinations are properly reflected in the Accounts in accordance with generally accepted accounting
principles applied consistently with prior statements and all deficiencies proposed as a result of such examinations have been paid and settled, except as disclosed in SCHEDULE 6.1.11. Except as disclosed in SCHEDULE 6.1.11:
(i) the Company has filed when due all returns, declarations and reports and information returns and statements in respect of any taxes required to be filed by or with respect to it on or before the date hereof (collectively,
“Returns”); (ii) the Returns which have not been examined and for which the statute of limitations remains open were either prepared consistently with Returns which have been examined or for which the statute of limitations has
expired, or adequate provision has been made therefor in the Accounts; (iii) the Company has timely paid all taxes that have been shown as due and payable on its Returns; (iv) the Company is not delinquent in the payment of any taxes and
has not requested any extension of time within which to file or send any Return, which Return has not since been filed or sent; and (v) no deficiency for any taxes has been proposed, asserted or assessed against the Company for which the
Company could be liable. 

  

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	6.1.12	Accounts Receivable. The accounts receivable of the Company shown in the Accounts as of the Accounts Date are, and will be, actual bona fide receivables from transactions in
the ordinary course of business representing valid and binding obligations of others for the total GBP amount shown thereon, and as of the Accounts Date were not (and presently are not) subject to any recoupments, set-offs, or counterclaims. All
such accounts receivable are and will be collectible in amounts not less than the amounts (net of reserves) carried on the books of the Company and will be paid in accordance with their terms. All such accounts receivable are and will be actual bona
fide receivables from transactions in the ordinary course of business. 

  

	6.1.13	Inventory. The inventories of the Company shown in its Accounts as of the Accounts Date are so shown on the basis of a complete physical count and are carried at values which
reflect the normal inventory valuation policy of the Company of stating the items of inventory at cost or market value, whichever is lower, on a first in, first out basis in accordance with generally accepted accounting principles consistently
applied. All slow-moving, unmarketable, returned, rejected, damaged, and obsolete or below standard quality inventory of the Company has been valued at its recoverable value. Inventory acquired since the Accounts Date has been acquired in the
ordinary course of business and valued as set forth above. 

  

	6.1.14	Machinery and Equipment. Except for items disposed of in the ordinary course of business, all machinery, tools, equipment and all other tangible personal property
(hereinafter “Fixed Assets”) of the Company currently being used in the conduct of its business, or included in determining the net worth of the Company on the Accounts as of the Accounts Date, together with any machinery or equipment that
is leased or operated by the Company, are in good and fully serviceable working condition and repair. The Fixed Assets are described in SCHEDULE 6.1.14. Since the Accounts Date the Company has not written up the value of any such Fixed
Assets. 

  

	6.1.15	Title to Properties; Certain Real Property Matters. The Company does not own any interest in real property other than the Leases. 

  

	6.1.16	 Leases. All leases of real and personal property of the Company are described in SCHEDULE 6.1.16, are in full force and effect and constitute legal,
valid and binding obligations of the respective parties thereto enforceable in accordance with their terms, except as limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting generally the enforcement of
creditor’s rights, and have not been assigned or encumbered. The Company has performed in all material respects the obligations required to be performed by it under all such leases to date and it is not in default in any material respect under
any of said leases, except as set forth in SCHEDULE 6.1.16, nor has it made any leasehold improvements required to be removed at the termination of any lease, except signs. No other party to any such lease is in material default thereunder.
Except as noted on SCHEDULE 6.1.16, none of the leases listed thereon require the consent 

  

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of a third party in connection with the transfer of the Shares. The parties will enter into a lease for one year for the current office space occupied by the
Company and the Company will terminate or modify its current lease. 

  

	6.1.17	Patents, Trademarks, Etc. The Company owns, or possesses adequate licenses or other rights to use, all patents, trademarks, service marks, trade names and copyrights and
trade secrets, if any, necessary to conduct its business as now operated by it. The patents, trademarks, service marks, copyrights, trade names and trade secrets, if any, registered in the name of or owned or used by or licensed to the Company and
applications for any thereof (hereinafter the “Intangibles”) are described or referenced in SCHEDULE 6.1.17. Seller hereby specifically acknowledge that all right, title and interest in and to all patents listed on SCHEDULE
6.1.17 as patents owned by the Company are owned by the Company and that the ownership of such patents will be transferred as part of the Company to Purchaser as part of the transaction contemplated hereby. No officer, director, shareholder or
employee of the Company or any relative or spouse of any such person owns any patents or patent applications or any inventions, secret formulae or processes, trade secrets or other similar rights, nor is any of them a party to any license agreement,
used by or useful to the Company or related to the Business except as listed in SCHEDULE 6.1.17. All of said Intangibles are valid and in good standing, are free and clear of all liens, security interests, charges, restrictions and
encumbrances of any kind whatsoever, and have not been licensed to any third party except as described in SCHEDULE 6.1.17. The Company has not been charged with, nor has it infringed, nor to the Seller’ knowledge is it threatened to be
charged with infringement of, any patent, proprietary rights or trade secrets of others in the conduct of its business, and, to the date hereof, neither the Seller nor the Company has received any notice of conflict with or violation of the asserted
rights in intangibles or trade secrets of others. The Company is not now manufacturing any goods under a present permit, franchise or license, except as set forth in said SCHEDULE 6.1.17. The consummation of the transactions contemplated
hereby will not alter or impair any rights of the Company in any such Intangibles or in any such permit, franchise or license, except as described in SCHEDULE 6.1.17. The Intangibles and the Company’s tooling, manufacturing and
engineering drawings, process sheets, specifications, bills of material and other like information and data are in such form and of such quality that the Company can design, produce, manufacture, assemble and sell the products and provide the
services heretofore provided by it so that such products and services meet applicable specifications and conform with the standards of quality and cost of production standards heretofore met by it. The Company has the sole and exclusive right to use
its corporate and trade names in the jurisdictions where it transacts business. 

  

	6.1.18	 Insurance Policies. There is set forth in SCHEDULE 6.1.18 a list and brief description of all insurance policies on the date hereof held by the
Company or on which it pays premiums, including, without limitation, life insurance and title insurance policies, which description includes the premiums payable by it thereunder. SCHEDULE 6.1.18 also sets forth, in the case of any life
insurance policy held by the Company, the name of the insured under such policy, the cash surrender value thereof and any loans thereunder. All such insurance premiums in respect of such coverage have been paid in full, or if not due, properly
accrued on the Accounts as of the Accounts Date. All claims, if any, made against the Company 

  

 13 

	 	 
which are covered by such policies have been, or are being, settled or defended by the insurance companies that have issued such policies and no excess
liability exists. No such policy has been cancelled by the issuer thereof. 

  

	6.1.19	Banking and Personnel Lists. The Seller and the Company have delivered to the Purchaser as of the date hereof the following accurate lists and summary descriptions relating
to the Company: 

 (i) The name of each bank in which the Company has an account or safe deposit box and the names of all
persons authorized to draw thereon or have access thereto. 
 (ii) The names, current annual salary rates and total compensation for the
preceding fiscal year of all of the present directors and officers of the Company, and any other employees whose current base accrual salary or annualized hourly rate equivalent is GBP10,000 or more, together with a summary of the bonuses,
percentage compensation and other like benefits, if any, paid or payable to such persons for the last full fiscal year completed, together with a schedule of changes since that date, if any. 
 (iii) The name of all pensioned employees of the Company whose pensions are unfunded and are not paid or payable pursuant to any formalized pension
arrangements, their agent and annual unfunded pension rates. 
  

	6.1.20	Lists of Contracts, Etc. There is included in SCHEDULE 6.1.20 a list of the following items (whether written or oral) relating to the Company, which list identifies
and fairly summarizes each item: 

 (i) All collective bargaining and other labor union agreements (if any); all employment
agreements with any officer, director, employee or consultant; and all employee pension, health and welfare benefit plans, group insurance, bonus, profit sharing, severance, vacation, hospitalization, and retirement plans, post-retirement medical
benefit plans, and any other plans, arrangements or custom requiring payments or benefits to current or retiring employees. 
 (ii) All joint
venture contracts of the Company or affiliates relating to the Business; 
 (iii) All contracts of the Company relating to
(a) obligations for borrowed money, (b) obligations evidenced by bonds, debentures, notes or other similar instruments, (c) obligations to pay the deferred purchase price of property or services, except trade accounts payable arising
in the ordinary course of business, (d) obligations under capital leases, (e) debt of others secured by a lien on any asset of the Company, and (f) debts of others guaranteed by the Company. 
 (iv) All agreements of the Company relating to the supply of raw materials for and the distribution of the products of the Business, including without
limitation all sales agreements, manufacturer’s representative agreements and distribution agreements of whatever magnitude and nature, and any commitments therefor; 
  

 14 

 (v) All contracts that individually provide for aggregate future payments to or from the Company of
£5,000 or more, to the extent not included in (i) through (iv) above; 
 (vi) All contracts of the Company that have a term
exceeding one year and that may not be cancelled without any liability, penalty or premium, to the extent not included in (i) through (v) above; 
 (vii) A complete list of all outstanding powers of attorney granted by the Company; and 
 (viii) All other
contracts of the Company material to the business, assets, liabilities, financial condition, results of operations or prospects of the Business taken as a whole. 
 Except as set forth in SCHEDULE 6.1.20, (i) all contracts, agreements and commitments of the Company set forth in SCHEDULE 6.1.20 are valid, binding and in full force and effect, and
(ii) neither the Company nor any other party to any such contract, agreement, or commitment has materially breached any provision thereof or is in default thereunder. Except as set forth in SCHEDULE 6.1.20, the sale of the Shares by the
Sellers in accordance with this Agreement will not result in the termination of any contract, agreement or commitment of the Company set forth in SCHEDULE 6.1.20, and immediately after the date hereof, each such contract, agreement or
commitment will continue in full force and effect without the imposition or acceleration of any burdensome condition or other obligation on the Company resulting from the sale of the Shares by the Seller. 
 There are no pending disputes with customers or vendors of the Company regarding quality or return of goods involving amounts in dispute with any one
customer, whether for related or unrelated claims, in excess of GBP5,000 except as described on SCHEDULE 6.1.20 hereto. To the best knowledge of Sellers and the Company, there has not been any event, happening, threat or fact that would lead
them to believe that any of said customers or vendors will terminate or materially alter their business relationship with the Company after completion of the transactions contemplated by this Agreement. 
  

	6.1.21	 Compliance With the Law. The Company is not in violation of any applicable national, state, local or foreign law, regulation or order or any other, decree or
requirement of any governmental, regulatory or administrative agency or authority or court or other tribunal (including, but not limited to, any law, regulation order or requirement relating to securities, properties, business, products,
manufacturing processes, advertising, sales or employment practices, terms and conditions of employment, occupational safety, health and welfare, conditions of occupied premises, product safety and liability, civil rights, or environmental
protection, including, but not limited to, those related to waste management, air pollution control, waste water treatment or noise abatement). The Company has not been and is not 

  

 15 

	 	 
now charged with, or to the knowledge of the Seller or the Company under investigation with respect to, any violation of any applicable law, regulation,
order or requirement relating to any of the foregoing, nor, to the knowledge of any Seller or the Company after due inquiry, are there any circumstances that would or might give rise to any such violation. The Company has filed all reports required
to be filed with any governmental, regulatory or administrative agency or authority. 

  

	6.1.22	Litigation; Pending Labor Disputes. Except as specifically identified on the Accounts as of the Accounts Date or footnotes thereto: 

 (i) There are no legal, administrative, arbitration or other proceedings or governmental investigations pending or, to the knowledge of Seller or the
Company, threatened, against the Seller or the Company, relating to the Business or the Company or its properties (including leased property), or the transactions contemplated by this Agreement, nor is there any basis known to the Company or any
Seller for any such action. 
 (ii) There are no judgments, decrees or orders of any court, or any governmental department, commission, board,
agency or instrumentality binding upon Seller or the Company relating to the Business or the Company the effect of which is to prohibit any business practice or the acquisition of any property or the conduct of any business by the Company or which
limit or control or otherwise adversely affect its method or manner of doing business. 
 (iii) No work stoppage has occurred and is
continuing or, to the knowledge of Seller or the Company, is threatened affecting the Business, and no representation question involving recognition of a collective bargaining agent exists in respect of any employees of the Company. 
 (iv) There are no pending labor negotiations or union organization efforts relating to employees of the Company. 
 (v) There are no charges of discrimination (relating to sex, age, race, national origin, handicap or veteran status) or unfair labor practices pending or,
to the knowledge of the Seller or the Company, threatened before any governmental or regulatory agency or authority or any court relating to employees of the Company. 
 (vi) Specifically there has not been any litigation involving any employees terminated by the Company in the past two years. 
  

	6.1.23	Absence of Certain Changes or Events. The Company has not, since the Accounts Date, except as described on SCHEDULE 6.1.23: 

 (i) Incurred any material obligation or liability (absolute, accrued, contingent or otherwise) except in the ordinary course of its business or in
connection with the 

  

 16 

 
performance of this Agreement, and any such obligation or liability incurred in the ordinary course is not materially adverse, except for claims, if any,
that are adequately covered by insurance; 
 (ii) Discharged or satisfied any lien or encumbrance, or paid or satisfied any obligations or
liability (absolute, accrued, contingent or otherwise) other than (a) liabilities shown or reflected on the Accounts as of the Accounts Date, and (b) liabilities incurred since such Accounts Date in the ordinary course of business that
were not materially adverse; 
 (iii) Increased or established any reserve or accrual for taxes or other liability on its books or otherwise
provided therefor, except (a) as disclosed on the Accounts as of the Accounts Date or any subsequent interim financial statement, or (b) as may have been required under generally accepted accounting principles due to income earned or
expense accrued since the Accounts Date and as disclosed to the Purchaser in writing; 
 (iv) Mortgaged, pledged or subjected to any lien,
charge or other encumbrance any of its assets, tangible or intangible; 
 (v) Sold or transferred any of its assets or cancelled any debts or
claims or waived any rights, except in the ordinary course of business and which has not been materially adverse; 
 (vi) Disposed of or
permitted to lapse any patents or trademarks or any patent or trademark applications material to the operation of its business; 
 (vii)
Incurred any significant labor trouble or granted any general or uniform increase in salary or wages payable or to become payable by it to any director, officer, employee or agent, or by means of any bonus or pension plan, contract or other
commitment increased the compensation of any director, officer, employee or agent; 
 (viii) Authorized any capital expenditure for real
estate or leasehold improvements, machinery, equipment or molds in excess of GBP5,000 in the aggregate; 
 (ix) Except for this Agreement,
entered into any material transaction other than in the ordinary course of business; 
 (x) Issued any stocks, bonds, or other corporate
securities, or made any declaration or payment of any dividend or any distribution in respect of its capital stock; or 
 (xi) Experienced
damage, destruction or loss (whether or not covered by insurance) individually or in the aggregate materially and adversely affecting any of its properties, assets or business, or experienced any other material adverse change or changes individually
or in the aggregate affecting its financial condition, assets, 

  

 17 

 
liabilities or business, including, without limitation of the foregoing, the loss or (to the Company’s or any Seller’s knowledge) impending loss of
any materially important contract or customer. 
 No information has been brought to the attention of the Company or any Seller that might
reasonably lead the Company or any Seller to believe that any customer or supplier of the Company intends to cease dealing with the Company, nor has information been brought to the attention of the Company or any Seller that might reasonably lead
any of them to believe that any customer or supplier intends to alter in any material respect the amount of such customer’s or supplier’s dealings with the Company or would alter in any material respect such dealings in the event of the
consummation of the transactions contemplated hereby. Neither the Company nor any Seller has knowledge that any officer or other key employee of the Company is considering the termination of employment. 
  

	6.1.24	Employee Benefit Plans and Arrangements. The Company has no employee benefit plans, pension plans or individual account plans or any other plans that covers any employee or
former employee of the Company. 

  

	6.1.25	Assets. The assets of the Company are sufficient in all material respects to carry on the operations of the Business as now conducted by the Company. The Company is the only
business organization through which the Business is conducted. Except as set forth in SCHEDULE 6.1.16, all assets used by the Seller and the Company to conduct the Business are owned by the Company. 

  

	6.1.26	Absence of Certain Commercial Practices. Neither the Company nor any Seller has made any payment (directly or by secret commissions, discounts, compensation or other
payments) or given any gifts to another business concern, to an agent or employee of another business concern or of any governmental entity (domestic or foreign) or to a political party or candidate for political office (domestic or foreign), to
obtain or retain business for the Company or to receive favorable or preferential treatment, except for gifts and entertainment given to representatives of customers or potential customers (i) of sufficiently limited value and in a form (other
than cash) that would not be construed as a bribe or payoff, (ii) which are consistent with accepted ethical customs and practices, and (iii) public disclosure of which would not embarrass either Seller or Purchaser.

  

	6.1.27	Licenses, Permits, Consents and Approvals. The Company has all licenses, permits or other authorizations of governmental, regulatory or administrative agencies or authorities
(collectively, “Licenses”) required to conduct the Business. No registration, filing, application, notice, transfer, consent, approval, order, qualification, waiver or other action of any kind (collectively, a “Filing”) will be
required as a result of the sale of the Shares by Seller in accordance with this Agreement (a) to avoid the loss of any License or the violation, breach or termination of, or any default under, or the creation of any lien on any asset of the
Company pursuant to the terms of, any law, regulation, order or other requirement or any contract binding upon the Company or to which any such asset may be subject, or (b) to enable Purchaser (directly or through any designee) to continue the
operation of the Company and the Business substantially as conducted as of the date hereof. 

  

 18 

	6.1.28	Broker. Neither the Company nor any Seller has retained any broker in connection with any transaction contemplated by this Agreement for which Purchaser would be obligated to
pay any fee or commission. 

  

	6.1.29	Related Party Transactions. All transactions of the Company during the past five years have been conducted on an arms-length basis. All transactions during the past five
years between the Company and any current or former shareholder or any entity in which the Company or any current or former shareholder had or has a direct or indirect interest have been fair to the Company and on terms comparable to those that
would have prevailed in an arms-length transaction. No portion of the sales or other on-going business relationships of the Company is dependent upon the friendship or the personal relationships (other than those customary within business generally)
of any Seller or any of the Company’s officers, directors, consultants, agents or other key employees. During the past five years, the Company has not forgiven or cancelled, without receiving full consideration, any indebtedness owing to it by
any Seller, any officer, director, consultant, agent or other employee of the Company, or any entity in which any Seller or the Company has a direct or indirect interest. Except for the ownership of not more than 1% of the outstanding securities of
any class of any publicly-held corporation, no Seller owns, and to the best knowledge of the Seller none of the Company’s officers, directors, consultants, agents or other key employees (including purchasing agents and departmental managers)
owns, directly or indirectly, any interest in or has any investment or profit participation in any corporation or other entity that is a competitor or potential competitor of or that otherwise, directly or indirectly, does business with the Company.

  

	6.1.30	Disclosure. All statements contained in any schedule, certificate, opinion, instrument, or other document delivered by or on behalf of the Seller or the Company pursuant
hereto or in connection with the transactions contemplated hereby shall be deemed representations and warranties by each Seller herein. No statement, representation or warranty by the Seller in this Agreement or in any schedule, certificate,
opinion, instrument, or other document furnished or to be furnished to the Purchaser pursuant hereto or in connection with the transactions contemplated hereby contains or will contain any untrue statement of a material fact or omits or will omit to
state a material fact required to be stated therein or necessary to make the statements contained therein not misleading or necessary in order to provide a prospective purchaser of the business of the Company with full and fair disclosure concerning
the Company, the Business, and the Company’s affairs. 

  

	7.	REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS OF PURCHASER. 

  

	7.1	For the purposes of clauses 7.3, 7.4 and Schedule 4.2 the definition of Company shall include any successor division or Subsidiary of the Purchaser to which the business of the
Company may be transferred after Completion. 

  

	7.2	The Purchaser makes the following representations and warranties to the Sellers. 

  

 19 

	7.2.1	Organization. The Purchaser is a corporation duly organized, validly existing and in good standing under the laws of the United States of America. The Purchaser has the
corporate power to own its properties, to carry on its business as now being conducted, and to enter into and perform the terms and provisions of this Agreement. 

  

	7.2.2	Authorization. The execution and delivery of this Agreement and the consummation of the transactions contemplated herein have been duly and validly approved and acknowledged
by all necessary corporate action on the part of the Purchaser. 

  

	7.2.3	No Conflict or Violation. The execution and delivery of this Agreement, the acquisition of the Shares by Purchaser and the consummation of the transactions herein
contemplated, and the compliance with the provisions and terms of this Agreement, are not prohibited by the Articles of Incorporation or By-laws of the Purchaser and will not violate, conflict with or result in a breach of any of the terms or
provisions of, or constitute a default under, any court order, indenture, mortgage, loan agreement, or other agreement or instrument to which the Purchaser is a party or by which it is bound. 

  

	7.2.4	Investment Representation. The Shares are being purchased by the Purchaser solely for investment and not for the purpose of resale to any third party, except that it is
agreed by the Seller that the Purchaser may assign the Shares at the time of this Agreement or thereafter to a subsidiary or affiliate of the Purchaser. 

  

	7.2.5	Disclosure. All statements contained in any schedule, certificate, opinion, instrument, or other document delivered by or on behalf of the Purchaser pursuant hereto or in
connection with the transactions contemplated hereby shall be deemed representations and warranties by the Purchaser herein. No statement, representation or warranty of Purchaser contained in this Agreement or in any document, schedule or
certificate furnished or to be furnished to Seller pursuant hereto or in connection with the transactions contemplated hereby contains any untrue statement of a material fact known to Purchaser and necessary in order to make the statements of
Purchaser contained herein or therein not misleading. 

  

	7.3	The Purchaser undertakes with the Sellers (as a separate undertaking with each) that it will not, during or in respect of any period up to the end of the Earn-out Period, except
with the prior written consent of the Sellers (such consent not to be unreasonably refused or delayed) take any action, or allow the taking of any action by any other member from time to time of the Purchaser’s Group, to:

  

	7.3.1	change the general nature of any business of the Company; 

  

	7.3.2	distort Relevant Turnover or Eligible Earnings of the Company: 

  

	7.3.3	require any trading or other arrangements to be entered into between the Company or any Subsidiary of the Company and any party (including the Purchaser) otherwise than at
arms’ length on normal commercial terms; 

  

 20 

	7.3.4	apply any management charges other than in respect of the Exemption Percentage including making the Company or any Subsidiary of the Company responsible for any directors fees for
any new directors appointed in pursuance to this Agreement or after Completion; 

  

	7.3.5	adversely affect the carrying on of the business of the Company or any Subsidiary of the Company in the ordinary course of business and its aim of making the maximum Relevant
Turnover and Eligible Earnings within the context of the commitments and resources reasonably available; 

  

	7.3.6	create any Encumbrance over the Designated Bank Accounts or cause the Company to use any other bank accounts other than the Designated Bank Accounts or to make any loan or
quasi-loan so as to adversely effect the Company’s cash resources and its ability to pay when due its salary and bonus commitments to any of its employees; 

  

	7.3.7	dismiss or otherwise remove from the employment of the Company any Managing Director of the Company as defined in the Bonus Plan. 

  

	7.4	From the Completion Date until the end of the Earn-out Period the Purchaser shall procure that the Sellers are given full opportunity to examine the books and accounts kept by the
Company and are supplied with all relevant information, including monthly management accounts and operating statistics and such other trading and financial information in such form as they reasonably require to keep each of them properly informed
about the business of the Company. Such information shall be supplied subject to any reasonable confidentiality restrictions as shall be required by the Purchaser. 

  

	8.	EXCHANGE OF CONSIDERATION. 

  

	8.1	In reliance on the representations and warranties contained herein, and subject to the terms and conditions of this Agreement, the following exchanges are made as of the Completion
Date: 

  

	8.1.1	Stock to Seller. Seller has entered into subscription agreements for the Consideration Shares and the Purchaser has delivered to Sellers or Escrow Agent the Purchase Price.

  

	8.1.2	Transfer of Shares. The Sellers sell, assign, transfer and deliver to the Purchaser all of the Sale Shares which comprise the whole of the share capital of the Company, free
and clear of any liens, pledges, charges, encumbrances, restrictions and transfer taxes of any kind. The Sellers deliver to the Purchaser all of their certificates evidencing the Sale Shares together with duly endorsed stock transfer forms,
signatures guaranteed. 

  

	8.1.3	Employment Agreements. Each of the Sellers other than David Coates have or will enter into employment agreement set forth in the forms attached hereto and made a part hereof
as EXHIBIT 8.1.3. The Sellers have or will procure that David Humphries has or will enter into an employment agreement set forth in the form attached hereto and made a part hereof as EXHIBIT 8.1.3. 

  

 21 

	8.1.3a	Employment Indemnity. Any employment contract between the Company and any person that does not remain in effect on the Completion Date, the Sellers undertake to the Purchaser
that they will indemnify and keep indemnified and fully reimburse on demand the Purchaser against any liability the Purchaser may incur in respect of all employment costs relating to said employment agreements, including but not limited to the
termination of the employment of any employee prior to the Completion Date. 

  

	8.1.4	Consents, Approvals and Waivers. The Seller and the Company shall have obtained any and all consents and approvals to the transfer or assignment to the Purchaser of all of
the Sale Shares that may be necessary to avoid any breach of, default by, or acceleration of obligations of the Company under any agreement or instrument by reason of such transfer and assignment, and any waivers by any parties to such agreements
necessary to avoid any such breaches, defaults or accelerations. 

  

	8.1.5	Receipt of Other Documents. Purchaser has received the following: 

 (i) A copy of the Memorandum and Articles of Association or equivalent charter documents of the Company certified as of a recent date; 
 (ii) Certified copies of resolutions duly adopted by the Board of Directors of the Company and by the Sellers in their capacity as shareholders authorizing the execution and delivery of this Agreement and the sale and
transfer of the Sale Shares to the Purchaser; 
 (iii) Certificates of each of the Seller certifying that as of the date of this Agreement
that (a) each representation and warranty of the Sellers contained in this Agreement shall have been true and correct; (b) Sellers have performed or complied in all material respects with all agreements and covenants required by this
Agreement; and (c) Seller and the Company shall have obtained all consents, waivers and approvals required in connection with the consummation of the transactions contemplated hereby. 
 (iv) The corporate or statutory books of the Company complete and accurate as of the date of this Agreement. 
 (v) Such additional certificates and other documents as Purchaser or its counsel may deem reasonably necessary to evidence the truth and accuracy, as of
the date hereof, of the representations and warranties contained herein or contemplated hereby and the due satisfaction and performance of all agreements and covenants to be complied with, satisfied and performed by the Sellers and the Company.

  

	8.1.6	 Further Assurances. Subsequent to the Completion Date, the Sellers shall execute and deliver from time to time at the request of Purchaser all such further
instruments as, in the reasonable opinion of Purchaser’s counsel, may be required in order to vest in Purchaser full, unencumbered and complete title to the Sale Shares to be conveyed by the Sellers to 

  

 22 

	 	 
Purchaser hereunder or to maintain intact all right, title and interest of the Company under any contract, license, permit or other document or instrument of
the Company or relating to the Business that would otherwise be adversely affected by such transfer of the Sale Shares. 

  

	9.	LIMITATIONS ON CLAIMS. 

  

	9.1	The definitions and rules of interpretation in this clause apply in this Agreement. 

 Claim: a claim for breach of any of the Warranties. 
 Substantiated Claim: a Claim in respect
of which liability is admitted by the party against whom such Claim is brought, or which has been adjudicated on by a court of competent jurisdiction and no right of appeal lies in respect of such adjudication, or the parties are debarred by passage
of time or otherwise from making an appeal. 
 A Claim is connected with another Claim or Substantiated Claim if they all arise out of
the occurrence of the same event or relate to the same subject matter. 
  

	9.2	This clause limits the liability of the Sellers in relation to any Claim. 

  

	9.3	The liability of the Sellers for all Substantiated Claims when taken together shall not exceed the Purchase Price. 

  

	9.4	The Sellers shall not be liable for a Claim unless: 

  

	9.4.1	the amount of a Substantiated Claim, or of a series of connected Substantiated Claims of which that Substantiated Claim is one, exceeds GBP10,000; 

  

	9.4.2	the amount of all Substantiated Claims that are not excluded under clause 9.4.1 when taken together exceeds GBP100,000, in which case the whole amount (and not just the amount by
which the limit in this clause 9.4.2 is exceeded) is recoverable by the Purchaser. 

  

	9.5	The Sellers are not liable for any Claim to the extent that the Claim relates to any matter specifically and fully provided for in the Accounts. 

  

	9.6	 All of the covenants and agreements contained in or made in connection with or pursuant to this Agreement shall survive the date hereof and any investigation at any
time made by or on behalf of Purchaser and shall be perpetual; provided, however, that any covenants or agreements that are expressly limited in duration pursuant to the terms thereof shall survive the date hereof only for such specified duration.
The representations, warranties and covenants of the parties contained in this Agreement, or in any certificate or other instrument delivered pursuant to this Agreement, shall terminate on May 10, 2010; provided, however, that those
contained in Clause 6.1.11 (Tax Matters) shall survive until 

  

 23 

	 	 
the 30th day after expiration of the applicable statute
of limitations, and those contained in Clause 6.1.1 (Organization), Clause 6.1.2 (Authority), Clause 6.1.3 (Shares), Clause 6.1.8 (Accounts), Clause 6.1.26 (Absence of Certain Commercial Practices), Clause 6.1.28 (Broker) and Clause 6.1.21
(Compliance With the Law), shall survive indefinitely. 

  

	9.7	Notwithstanding the foregoing provisions, the Seller’s obligation to indemnify Purchaser pursuant to Clause 10 hereof shall continue for the applicable statute of
limitations with respect to any claim involving intentional misrepresentation by or on behalf of any Seller or the Company, and any representation and warranty that is the subject of such claim shall survive for such period.

  

	10.	INDEMNIFICATION. 

  

	10.1	Indemnity of Purchaser. The Seller agrees to indemnify and hold harmless the Purchaser, the Company, and their respective officers, directors, agents and employees,
successors and assigns, subject to any applicable limitation on Claim set forth in Clause 9 above, from and against and in respect of any and all claims, demands, actions, suits, losses, costs, damages, consequential damages, liabilities,
charges, expenses, obligations, judgments, lost profits, diminution in value and deficiencies of any kind or character, including, without limitation, interest and penalties, whether or not involving a third party claim, which may be asserted or
secured against, sustained, suffered or incurred by Purchaser, the Company or any of such other persons and arises out of or in any manner is incident to, relates to or is attributable to: 

 (i) Any misrepresentation, misstatement, omission, breach of warranty or nonfulfillment of any obligation, covenant or condition on the part of Seller
(a) herein or in any Schedule or Exhibit hereto, or (b) in any certificate or other instrument or document furnished to the Purchaser in connection herewith; 
 (ii) Any liability of the Purchaser for any liability or obligation of the Company to be satisfied by Seller pursuant to the terms hereof, whether accrued, absolute, contingent or otherwise and whether known or
unknown, due or which became due; 
 (iii) Any failure by Seller to perform or observe, or to have performed or observed, in full, any
covenant, agreement or condition to be performed or observed by them under this Agreement or any Schedule or Exhibit hereto or under any certificate or other document or agreement executed by any of them in connection herewith; and 
 (iv) Any and all material actions, suits, proceedings, demands, assessments or judgments, including legal and other necessary and reasonable costs and
expenses, incident to any of the foregoing. 
  

	10.2	 Defense of Claims. In the event any claim, action, suit or proceeding is made or brought by any third party against the Company or Purchaser, or if any
governmental enforcement agency shall propose to issue an order, with respect to which Sellers may have liability under this Agreement, the Sellers shall be entitled to participate in, and, to the extent that they shall wish, to assume the defense
thereof, with independent counsel reasonably 

  

 24 

	 	 
satisfactory to such indemnified party. If the Sellers elect to assume the defense of any such third-party claim, the Sellers shall have the right to
contest, pay, settle or compromise any such claim on such terms and conditions as they may determine, provided that the Sellers shall not pay, settle or compromise any such claim without the prior written consent of the Purchaser, which consent
shall not be unreasonably withheld. If the Sellers do not elect to assume the defense of any such claim, the Purchaser may engage counsel to assume the defense and may contest, pay, settle or compromise any such claim on such terms and conditions as
the Purchaser may determine. The fees and disbursements of such counsel shall be among the expenses for which Purchaser is indemnified pursuant to Clause 9 hereof. Purchaser and the Sellers, as the case may be, shall (as the other may
reasonably request) keep the other fully informed of such claim, action, suit or proceeding at all stages thereof whether or not such party is represented by its own counsel. 

  

	10.3	Dispute Resolution. Any dispute between Sellers and Purchaser relating to a claim for indemnification shall be resolved as follows: 

 (i) If the parties agree that the dispute is one involving financial matters, such dispute shall be referred to and determined by an appraiser mutually
acceptable to the parties. In the event they cannot agree on such selection, Purchaser and Seller shall each nominate an appraiser as its (or their) representative and the two appraisers so nominated shall jointly select a third appraiser. In such
event, the resolution of the dispute shall be decided by a majority of the three appraisers. The resolution of the dispute by the appraisers shall be final and binding upon all parties as to financial matters, but shall not extend to any
nonfinancial interpretation of this Agreement unless Purchaser and Seller shall mutually agree in writing to the contrary. 
 (ii) If the
dispute does not involve financial matters, or if the parties are unable to agree whether the dispute involves financial matters, then the dispute shall be submitted to and settled by the courts as provided in Clause 14 hereof. 
  

	10.4	Effect of Purchaser’s Knowledge. Any knowledge of any matter by Purchaser or any disclosure to Purchaser by Seller of any matter shall not reduce or affect any
indemnification claim of Purchaser hereunder unless and except for any disclosures by Seller on any schedule hereto delivered at the time of execution hereof. 

  

	11.	RESTRICTIVE COVENANTS. 

  

	11.1	Each of the Sellers severally covenants with the Purchaser that he shall not: 

  

	11.1.1	at any time during the period of 3 years beginning with the Completion Date, in any geographic areas in which any business of the Company was carried on at the Completion Date carry
on or be employed, engaged or interested in any business which would be in competition with any part of the Business as the Business was carried on at the Completion Date; or 

  

 25 

	11.1.2	at any time during the period of 3 years beginning with the Completion Date, deal with any person who is at the Completion Date, or who has been at any time during the period of 12
months immediately preceding that date, a client or customer of the Company; or 

  

	11.1.3	at any time during the period of 3 years beginning with the Completion Date, canvass, solicit or otherwise seek the custom of any person who is at the Completion Date, or who has
been at any time during the period of 12 months immediately preceding that date, a client or customer of the Company; or 

  

	11.1.4	at any time during the period of 3 years beginning with the Completion Date: 

 (a) offer employment to, enter into a contract for the services of, or attempt to entice away from the Company, any individual who is at the time of the offer or attempt, and was at the Completion Date, employed or
directly or indirectly engaged in an executive or managerial position with the Company; or 
 (b) procure or facilitate the making of any
such offer or attempt by any other person; or 
  

	11.1.5	at any time after Completion, use in the course of any business: 

 (a) the word “Innovaro”; or 
 (b) any trade or service mark, business or domain name, design or logo which, at
Completion, was or had been used by the Company; or 
 (c) anything which is, in the reasonable opinion of the Purchaser, capable of
confusion with such words, mark, name, design or logo; or 
  

	11.1.6	at any time during a period of 3 years beginning with the Completion Date, solicit or entice away from the Company any supplier to the Company who had supplied goods services to the
Company at any time during the 12 months immediately preceding the Completion Date, if that solicitation or enticement causes or would cause such supplier to cease supplying, or materially reduce its supply of, those goods or services to the
Company. 

  

	11.2	The covenants in this clause 11 are intended for the benefit of the Purchaser and the Company and apply to actions carried out by the Sellers in any capacity and whether directly or
indirectly, on the Sellers’ own behalf, on behalf of any other person or jointly with any other person. 

  

	11.3	Nothing in this clause 11 prevents the Sellers or any of them from holding for investment purposes only: 

  

	 	(a)	any units of any authorised unit trust; or 

  

	 	(b)	the Consideration Shares or other shares in the Purchaser; or 

  

 26 

	 	(c)	not more than 5% of any class of shares or securities of any company traded on the American Stock Exchange or the London Stock Exchange. 

  

	11.4	Each of the covenants in this clause 11 is a separate undertaking by each Seller in relation to himself and his interests and shall be enforceable by the Purchaser separately and
independently of its right to enforce any one or more of the other covenants contained in this clause11. Each of the covenants in this clause 11 is considered fair and reasonable by the parties. If any restriction is found to be unenforceable, but
would be valid if any part of it were deleted or the period or area of application reduced, the restriction shall apply with such modifications as may be necessary to make it valid and enforceable. 

  

	11.5	The consideration for the undertakings contained in this clause 11 is included in the Purchase Price. 

  

	12.	FEES AND EXPENSES. The Seller, at their own cost, agree to be liable for and pay the following liabilities or expenses: 

 (i) Fees and expenses of any person for financial services rendered to the Sellers in connection with the sale contemplated by this Agreement; 

(ii) Fees and expenses of legal counsel and accountants and other advisors retained by the Sellers or the Company in connection with the sale of the
Sale Shares contemplated by this Agreement; and 
  

	13.	NOTICES. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered personally or to a
national courier service, or mailed by registered or certified mail, return receipt requested, to the addresses herein designated or at such other address as may be designated in writing by notice given personally or by national courier service or
by registered or certified mail return receipt requested: 

 If to the Sellers: 
 Elm Cottage, Mackney Lane 
 Brightwell-cum-Sotwell 
 Wallingford, Oxon 
 OX10 0SJ 
 Attention: Dr T. Jones and the former shareholders of Innovaro Ltd 
  

 27 

 and a copy to: 
 Vincent Sykes & Higham LLP 
 Montague House, Chancery Lane, 
 Thrapston, Northants 
 NN14 4LN 

Attention: Martin Jinks 
 If to the
Purchaser: 
 UTEK Corporation 
 2109 East Palm Ave. 
 Tampa, Florida 33605 
 Attention: Chief Executive Officer 
 and a copy to: 
 Sam I. Reiber, Esq. 
 2109 East Palm Ave.

 Tampa, Florida 33605 
 If to
the Company: 
 Innovaro Limited 
 84 Brook Street, London 
 W1K 5EH 
 Attention: Managing Director 
 and a copy to: 
 Sam I. Reiber, Esq. 
 2109 East Palm Ave.

 Tampa, Florida 33605 
  

	14.	GOVERNING LAW AND JURISDICTION; 

  

	14.1	This agreement and any disputes or claims arising out of or in connection with its subject matter are governed by and construed in accordance with the law of England.

  

	14.2	The parties irrevocably agree that the courts of England have exclusive jurisdiction to settle any dispute or claim that arises out of or in connection with this agreement.

  

	15.	 ASSIGNABILITY. This Agreement shall not be assignable by any party without the prior written consent of the other parties hereto; provided, however, that
rights and obligations of 

  

 28 

	 	 
Purchaser under this Agreement (i) shall pass to any successor corporation which assumes its business and affairs by merger, consolidation or by
acquisition of substantially all its assets or substantially all its stock and (ii) may be assigned to any affiliate of Purchaser, without any such prior written consent by any other party hereto. 

  

	16.	ENTIRE AGREEMENT. This instrument, together with the Schedules and Exhibits hereto and the documents referred to herein, contains the entire Agreement between the parties
hereto with respect to the transactions contemplated herein and supersedes all previous written or oral negotiations, commitments and representations. 

  

	17.	AMENDMENTS. This Agreement may be changed or modified only by an instrument executed by the Sellers and the Purchaser acting in the latter’s case by an officer thereunto
duly authorized by their Board of Directors. 

  

	18.	PARTIES IN INTEREST. This Agreement shall inure to the benefit of and be binding upon the parties named herein and their respective heirs, successors and assigns; nothing in
this Agreement, expressed or implied, is intended to confer upon any other person any rights or remedy under or by reason of this Agreement. 

  

	19.	CLAUSE AND OTHER HEADINGS. The clause and other headings contained in this Agreement are for reference purposes only and do not affect the interpretation or meaning of this
Agreement. 

  

	20.	COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the
same Agreement and therefore a faxed copy of the signatures of the parties will constitute execution by both parties. 

  

	21.	WAIVER. The waiver by any party hereto of any breach, default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall not be deemed
to extend to any prior or subsequent breach, default, misrepresentation, or breach of warranty or covenant hereunder and shall not affect in any way any rights arising by virtue of any such prior or subsequent occurrence. 

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

 

					
	SIGNED as a DEED	 		 	
			
	On behalf of UTEK Corporation	 		 	
	Incorporated in the United States of America, by	 	 /s/ Clifford M. Gross, CEO

		 		 	
	Clifford M. Gross, CEO	 		 	Authorised Signatory
			
	being a person who, in accordance	 		 	
	with the laws of that territory, is	 		 	
	acting under the authority of the company	 		 	
			
	Witness’ signature:	 		 	
	Name (in block capitals):	 		 	
	Address:	 		 	

  

 29 

					
			
	SIGNED as a DEED by	 		 	
			
	Tim Jones, Shareholder	 		 	 /s/ Tim Jones

			
	in the presence of:	 		 	
			
	Witness’ signature:	 		 	
	Name (in block capitals):	 		 	
	Address:	 		 	
			
	SIGNED as a DEED by	 		 	
			
	Ian Pallister, Shareholder	 		 	 /s/ Ian Pallister

			
	in the presence of:	 		 	
			
	Witness’ signature:	 		 	
	Name (in block capitals):	 		 	
	Address:	 		 	
			
	SIGNED as a DEED by	 		 	
			
	David Coates, Shareholder	 		 	 /s/ David Coates

			
	in the presence of:	 		 	
			
	Witness’ signature:	 		 	
	Name (in block capitals):	 		 	
	Address:	 		 	
			
	SIGNED as a DEED by	 		 	
			
	Tobias Rooney, Shareholder	 		 	 /s/ Tobias Rooney

			
	in the presence of:	 		 	
			
	Witness’ signature:	 		 	
	Name (in block capitals):	 		 	
	Address:	 		 	

  

 30 

					
	SIGNED as a DEED by	 		 	
			
	Michel van Hove, Shareholder	 		 	 /s/ Michael van Hove

			
	in the presence of:	 		 	
			
	Witness’ signature:	 		 	
	Name (in block capitals):	 		 	
	Address:	 		 	
			
	SIGNED as a DEED	 		 	
			
	On behalf of Innovaro Ltd	 		 	
	Incorporated in England and Wales, by	 		 	 /s/ Tim Jones

			
	Tim Jones, Director	 		 	Authorised Signatory
			
	Witness’ signature:	 		 	
	Name (in block capitals):	 		 	
	Address:	 		 	

  
  
  

 31 

 Schedule 3.1 
 Shares Owned and Consideration 
  

								
	 Seller’s name and address
	  	Shares owned	  	Number of
Consideration Shares
received as
Completion Payment	  	Proportion of
Consideration
Shares receivable	 
	 Dr Tim Robert Jones
 Elm Cottage
 Mackney Lane
 Brightwell-cum-Sotwell
 Wallingford
 Oxon
 OX10 0SJ
	  	6,500	  	TBC	  	65	%
				
	 Ian Pallister
 31 Hilton Drive
 Peterlee
 County Durham
 SR8 5UB
	  	2,000	  	TBC	  	20	%
				
	 David John Grainger Coates
 8 Church Street
 Stapleford
 Cambridge
 CB22 5DS
	  	500	  	TBC	  	5	%
				
	 Tobias James Rooney
 38 St John’s Villas
 London
 N19 3EG
	  	500	  	TBC	  	5	%
				
	 Mr. Michel Toussaint van Hove
 Maria Louiselaan 11
 1412 AE Naarden
 The Netherlands
	  	500	  	TBC	  	5	%

  

 32 

 Schedule 4.2 
 Deferred Payments 
  

	1.	INTERPRETATION 

 The definitions in
this paragraph apply in this Schedule. 
 Company: Innovaro Ltd (Company number 04125960) and for the purposes of clauses 7.3, 7.4 and
Schedule 4.2 the definition of Company shall include any successor division or Subsidiary of the Purchaser to which the business of the Company may be transferred after Completion. 
 Due Proportions: the proportions set out in Schedule 3.1. 
 Earn-out Period: the period of 3 calendar years commencing on 1 July 2008 and ending on the 30 June 2011. 
 Escrow Agent: The Bank of Tampa, Florida, USA. 
 Escrow Agreement: the escrow and lock-up
agreement in agreed form to be executed by the parties hereto and the Escrow Agent. 
 Expert: a person appointed in accordance with
paragraph 5 of this Schedule to resolve a dispute arising in relation to the calculation of Relevant Turnover. 
 Relevant Turnover: in
relation to any 12 month period ending on 30 June, the aggregate turnover of the Company and its Subsidiaries (if any) as shown in the audited management accounts of the Company and its Subsidiaries for that period. 
  

	2.	ESCROW 

 2.1 On Completion the
Purchaser shall issue but not deliver to the Sellers Consideration Shares representing the Deferred Payment Maximum which will be held in escrow by the Escrow Agent as nominee for the Sellers in the Due Proportions in accordance with this Agreement
and the Escrow Agreement until the earlier of: 
  

	 	(a)	there being no further Deferred Payments potentially payable as determined by the provisions of this Agreement in which event the balance of the Consideration Shares held by the
Escrow Agent shall be released to the Purchaser for cancellation; or 

  

	 	(b)	a Deferred Payment becoming due in which event so many of them as shall equate to such Deferred Payment shall be delivered to the Sellers. 

  

	3.	CALCULATION OF DEFERRED PAYMENTS 

  

	3.1	 The Deferred Payment due on each anniversary of Completion shall be the Relevant Percentage of the number of Consideration Shares credited as fully paid and
equating to 

  

 33 

	 	 
the Deferred Payment Maximum. For the purposes of this paragraph 3.1 the Relevant Percentage shall be determined by reference to the Relevant Turnover for
the relevant calendar year ending 30 June and the following table: 

  

						
	 Calendar Year
	  	 Relevant Turnover
	  	Relevant Percentage of the
Deferred Payments Maximum	 
	 Year ending 30 June 2009
	  	£0 - £1,000,000	  	10	%
		  	£1,000,001 - £2,350,000	  	35	%
		  	>£2,350,000	  	60	%
			
	 Year ending 30 June 2010
	  	£250,000 - £1,500,000	  	10	%
		  	£1,500,001 -£3,500,000	  	35	%
		  	>£3,500,000	  	60	%
			
	 Year ending 30 June 2011
	  	£500,000 - £2,500,000	  	10	%
		  	£2,500,001 - £4,750,000	  	35	%
		  	>£4,750,000	  	60	%

  

	4.	PROCEDURE FOR MAKING DEFERRED PAYMENTS 

  

	4.1	The Purchaser shall use its reasonable endeavours to ensure that the management accounts of the Company and each of its Subsidiaries (if any) are audited within 1 month of each
30 June within the Earn-out Period. 

  

	4.2	The Purchaser shall, within 7 days of receiving the audited management accounts of the Company and each of its Subsidiaries for each calendar year ending 30 June within the
Earn-out Period, send to the Sellers: 

  

	 	(a)	a copy of the audited management accounts of the Company and each of its Subsidiaries; and 

  

	 	(b)	a certificate issued by the Purchaser’s accountants stating: 

  

	 	(i)	the Relevant Turnover for the relevant calendar year ending 30 June; 

  

 34 

	 	(ii)	the amount of the Deferred Payment (if any) payable in respect of that year (subject to any deduction made in accordance with paragraph 4.7 of this Schedule).

  

	4.3	The Sellers have 14 days, starting with the day on which they receive the audited management accounts and certificate referred to in paragraph 4.2 of this Schedule, within which to
jointly give notice to the Purchaser that they do not accept the accuracy of the certificate. If the Sellers do not jointly give notice under this paragraph 4.3, they are all deemed to have accepted the certificate as accurate at the expiry of the
14 day period. 

  

	4.4	Where the Sellers jointly give notice that they do not accept the accuracy of the certificate, the parties have 14 days, starting with the day on which the Purchaser receives the
notice, within which to resolve any disagreement relating to the certificate. The parties shall use their best endeavours to resolve the disagreement within that period. 

  

	4.5	Where the parties are unable to resolve their disagreement within the 14 day period, the calculation of the Relevant Turnover for the relevant calendar year ending 30 June
shall be referred to an Expert. 

  

	4.6	Subject to paragraph 4.7, in relation to each calendar year ending 30 June within the Earn-out Period, the Escrow Agent shall deliver Consideration Shares representing the
Deferred Payment due to the Sellers in the proportions set opposite the Sellers’ names in Schedule 3.1 for that year on the later of the relevant anniversary of Completion or within a period of 14 days starting with the day on which:

  

	 	(a)	the Sellers accept or are deemed to have accepted the certificate relating to the Deferred Payment for that year as accurate in accordance with paragraph 4.3 of this Schedule; or

  

	 	(b)	the parties have resolved all disagreements on that certificate; or 

  

	 	(c)	the parties receive notice of the Expert’s decision on the Deferred Payment for that year. 

  

	4.7	The Purchaser may deduct from any Deferred Payment an amount in respect and satisfaction of any Claim which is subsisting and has not been settled in full by the Sellers at the time
that the Deferred Payment is due to be paid. Such deduction shall be calculated by reference to the principles set out in clause 4.9 of this Agreement. 

  

	4.8	Save as otherwise provided in this Schedule, the parties shall each bear their own costs incurred in the preparation of the certificate and the agreement of the Relevant Profits and
Deferred Payments. 

  

 35 

	5.	EXPERT 

  

	5.1	An Expert is a person appointed in accordance with this paragraph 5 to resolve a dispute arising in relation to the calculation of Relevant Turnover and any Deferred Payment.

  

	5.2	The parties shall agree on the appointment of an independent Expert. 

  

	5.3	If the parties are unable to agree on an Expert within seven days of either party serving details of a suggested expert on the other, either party may request the president of the
Institute of Chartered Accountants to appoint an Expert of repute with experience in consultancy businesses. 

  

	5.4	The Expert is required to prepare a written decision and give notice (including a copy) of the decision to the parties within a maximum of two months of the matter being referred to
the Expert. 

  

	5.5	If the Expert dies or becomes unwilling or incapable of acting, or does not deliver the decision within the time required by paragraph 5.4, then: 

  

	 	(a)	either party may apply to the President of the Institute of Chartered Accountants to discharge the Expert and to appoint a replacement Expert with the required expertise; and

  

	 	(b)	this paragraph 5 applies in relation to the new Expert as if he were the first Expert appointed. 

  

	5.6	All matters under this paragraph 5 shall be conducted, and the Expert’s decision shall be written, in the English language. 

  

	5.7	The parties are entitled to make submissions to the Expert including oral submissions and shall provide (or procure that others provide) the Expert with such assistance and
documents as the Expert reasonably requires for the purpose of reaching a decision. 

  

	5.8	To the extent not provided for by this paragraph, the Expert may, in his reasonable discretion, determine such other procedures to assist with the conduct of the determination as he
considers just or appropriate. 

  

	5.9	Each party shall, with reasonable promptness, supply each other party with all information and give each other party access to all documentation and personnel as each other party
reasonably requires to make a submission under this paragraph 5. 

  

	5.10	The Expert shall act as an expert and not as an arbitrator. The Expert shall determine the amount of Relevant Turnover and any Deferred Payment, which may include any issue
involving the interpretation of any provision of this agreement, his jurisdiction to determine the matters and issues referred to him or his terms of reference. The Expert’s written decision on the matters referred to him shall be final and
binding on the parties in the absence of manifest error or fraud. 

  

 36 

	5.11	Each party shall bear its own costs in relation to the Expert. The Expert’s fees and any costs properly incurred by him in arriving at his determination (including any fees and
costs of any advisers appointed by the Expert) shall be borne by the parties equally. 

  

 37 

 Schedule 6.1.8 
 Accounts 
 The following documents are enclosed; 
  

	1.	Innovaro 2007 Accounts 

  

	2.	Management accounts to 31 May 2008 

  

 38 

 Schedule 6.1.11 
 Tax Matters 
 The tax affairs of Innovaro Ltd are dealt with by HM Revenue & Customs, Staffordshire Area,
Blackburn House, Old Hall Street, Stoke on Trent, ST1 3DF under reference number 687/44920/00041. 
  

 39 

 Schedule 6.1.14 
 Fixed Assets 
 The Company’s fixed assets consist only of standard office equipment – furniture, computers
and printers. There is no individual item with market value over £1,000. The total market value of all fixed assets is less than £20,000. 
  

 40 

 Schedule 6.1.16 
 Leases of Real and Personal Property 
 84 Brook Street, London – to follow 
 Cambridge – to follow 
 Plan 100 office lease at Keizersgracht 62-64,
1015 CS Amsterdam, Neyherlands as per agreement dated October 24, 2005 enclose. 
  

 41 

 Schedule 6.1.17 
 Intangibles 
 Trademarks – Innovaro 
 Domain name – www.innovaro.com 
 There are two companies registered in England owned by Tim Jones and / or his
family. These are: 
  

	 	•	 	 Innovaro Insight Limited 

  

	 	•	 	 Innovation Leaders Limited 

 These companies are both
non-trading and neither of these firms have been used to invoice clients nor offer any services other than Tim Jones’ (and his ex-wife’s) time to Innovaro Ltd 
 Innovation Leaders is dormant and has never traded. 
  

 42 

 Schedule 6.1.18 
 Insurance Policies 
 1. Health Insurance – BUPA Group Scheme  
 Tim Jones and family 
 Ian Pallister and family 
 Tobias Rooney and family 
 Cost - £2900 per quarter, renewable
beginning of year  
 2. Critical Illness Cover – Scottish Equitable  
 Tim Jones 
 Ian Pallister 
 Provides £4000 per month income after 13 week period. 
 Cost - £450 per month renewable beginning of year 
 3. Package management consultants – SME insurance package 
 Includes professional indemnity, internet and email, general liability, employers liability, property contents and property away from the insured location all as per Hiscox renewal policy HU P16 1227722 (177) enclosed. 
  

 43 

 Schedule 6.1.20 
 Contracts 
 (i) All existing employment / consultancy agreements are to be replaced upon completion with the
employment contracts at Exhibit 5.4. 
 (v) Contracts involving payments of £5,000 or more are listed within the Management Accounts in Schedule
6.1.8. 
  

 44 

 Schedule 6.1.23 
 Changes since Accounts Date 
 In June 2008 David Humphries waived his right to exercise share options over 500
ordinary shares of £1 each under the Innovaro Limited Company Share Option Scheme including the Share Option Deed between Innovaro Ltd and him dated ... and the Rules of the Innovaro Ltd Enterprise Management Incentive Scheme annexed
thereto. 
  

 45 

 Exhibit 5.4 
 Employment Agreement 
  

 46Employment Agreement

 Exhibit 10.1 
 JAMES G. DELFS 
 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 JAMES G. DELFS (“Executive”), is made as of the
1st day of July, 2008 (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).  
 “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: 
  

	 	(a)	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 

	 	(b)	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. 

 Notwithstanding anything herein to the contrary, in the event any payment of compensation continuation during a Continuation Period commencing upon termination of employment shall result in Section 409A Adverse Treatment, then the
commencement of the payment of compensation continuation shall be deferred until the expiration of six (6) months following such termination, and the same amount which would have been paid during the Continuation Period commencing on
termination of employment if there had not been a Section 409A Adverse Treatment shall then be paid over the Continuation Period as deferred. Nevertheless, any Current Insurance Coverage which is to remain in effect during the Continuation
Period shall be extended to cover the time beginning on the Termination Date and continuing through the end of the Continuation Period as deferred as a result of the Section 409A Adverse Treatment deferral. 
 “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 shall mean 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. 
 “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: 
  

	(a)	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 

  

	(b)	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 

  

	(c)	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 

  

 3 

	(d)	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 

  

	(e)	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 

  

	(f)	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”. 

 “Section 409A Adverse Treatment” means the imposition on the Company or the Executive of adverse tax consequences under Section 409A of the
Internal Revenue Code resulting in a loss of deductions or an imposition of a higher tax than would apply if such Section 409A were not applicable to the compensation in question. 
 “Termination Date” means the last day Executive actively provides services to Company or written notice by the Board of Directors or Chief Executive Officer of the last date Executive is to be
employed, whichever is earlier. 
 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. 
 (b) Powers and Responsibilities.

 (1) 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 

  

 4 

 
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 officer’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. 
 (2) 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)(1) 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)(1) specifically or this Agreement generally. 
 SECTION 4. COMPENSATION AND BENEFITS 
 (a) Annual Base Salary. Executive’s base salary shall be $353,800 per year (“Annual Base Salary”),
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. 
 (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.

  

 5 

 (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. 
 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 continue to pay the Executive his normal base
salary each month following the effective date of the Executive’s termination until the end of the Continuance Period (subject in each case to such withholdings as required by law), and (ii) the Company shall continue until the earlier to

  

 6 

 
occur of the end of the Continuance 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.  
 (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 Termination Date, plus 100% of his current total Annual Base Salary as
specified in Section 4(a) (subject to such withholdings as required by law) in periodic payments during the Continuation Period. During the Continuation Period the Executive shall also continue to receive, at the Company’s cost, the
Current Insurance Coverage. 
 (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 Agreement shall be to pay Executive his earned but unpaid
Annual Base Salary, if any, up to the Termination Date and 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: 
 (1) 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; 
 (2) pay Executive his Earned Bonus, pro rata and if any, for the fiscal year in which such
termination of employment occurs; 
 (3) pay Executive an additional nine (9) months of compensation at the then-Annual
Base Salary; 
 (4) 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: 
 (5) pay premiums for COBRA coverage as provided in
Section 5(g); and 
 (6) 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)(2) or Section 5(d)(3) shall be taken into account in computing any payments or benefits described in this
Section 5(d)(4). 
  

 7 

 (7) 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 Disability 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 Disability occurred multiplied by the number of restricted shares, if any, which
failed to vest due to such termination of employment for Disability. 
 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. (i) If Executive’s employment terminates as a
result of his death, the Company shall: 
 (1) pay to Executive’s designated beneficiaries or estate his Annual Base
Salary through the end of the month in which his employment terminates as soon as practicable after his death; 
 (2) pay to
Executive’s designated beneficiaries or estate his Earned Bonus, when actually determined, for the year in which Executive’s death occurs, 
 (3) 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)(2) shall be taken into account in computing any payments or benefits described in this Section 5(e)(3); and, 
 (4) 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 (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. 

 

 8 

 (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 

  

	 	(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 effective date of the Executive’s termination of employment and not later than seven
(7) months following the effective date of the Executive’s termination of employment: an amount equal to (i) 200% of the total of severance payments (other than continued insurance coverage) provided under 5(b) of this agreement (and
in lieu thereof), and (ii) 200% of 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 for the applicable Continuation Period in order
to continue Executive’s health insurance coverage and maintain such coverage in effect. 
 (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 Termination Date. 
 (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 Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), as then in effect,
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 

  

 9 

 
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. 
 (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, 

  

 10 

 
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 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. 
  

 11 

 (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 
 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 

  

 12 

 
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. 
 (j) Executive Reclusal. Executive shall recluse himself from all deliberations of the Board regarding this Agreement, Executive’s employment by the Company or related matters. 
  

 13 

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

							
	STEIN MART, INC.	 		 	EXECUTIVE
				
	By:	 	 /s/ Linda M. Farthing
	 		 	 /s/ James G. Delfs

		 	Linda M. Farthing, President	 		 	James G. Delfs

  

 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-00144-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}]]