As announced earlier, Gators Lender, LLC (lender) agreed to extend the maturity date of a $1.25 million promissory note issued by Innovaro, Inc. that would otherwise have been due on October 22, 2012. At the time of such disclosure, the company and the lender were still in the process of documenting such agreement and related agreements, including relating to the issuance by the company to the lender of warrants to purchase up to 300,000 shares of the company's common stock. Subsequently, the company and the lender entered into a first amendment to note and warrant purchase agreement, effective as of October 22, 2012 and a warrant Agreement, dated as of October 22, 2012, to document such agreements.

In accordance with the terms of the note amendment, the maturity date of the promissory note has been extended from October 22, 2012 to October 22, 2013. In addition, the company has agreed to repay (i) $250,000 of the $1.25 million due under the promissory note on or before December 3, 2012, (ii) an additional $250,000 of the remaining $1.0 million due under the promissory note on or before October 22, 2013 and (iii) the final $750,000 of the remaining $750,000 due under the promissory note on or before October 22, 2015. If the company timely makes the first two payments described above, then the maturity date of the promissory note will be extended from October 22, 2013 to October 22, 2015.

The interest rate payable on amounts outstanding under the promissory note will remain unchanged at 8.0% per year and there is no penalty if the company pre-pays all or a portion of the promissory note prior to the scheduled repayments dates set out above. As an inducement for the lender to enter into the note amendment, the company agreed to issue the lender (i) warrants to purchase up to 150,000 shares of the company's common stock with an exercise price of $0.66 per share; (ii) warrants to purchase up to 75,000 shares of the company's common stock with an exercise price of $0.66 per share if and only if the company's indebtedness under the promissory note has not been repaid in full by October 22, 2013 and (iii) warrants to purchase up to an additional 75,000 shares of the company's common stock with an exercise price of $0.66 per share if and only if the company's indebtedness under the promissory note has not been repaid in full by October 22, 2014. The lender cannot exercise any of the warrants until April 23, 2013.