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                                                                  EXHIBIT 10.12


                              GUARANTY OF PAYMENT


         THIS GUARANTY is made this 14th day of November, 1996 by ARMOR
HOLDINGS PROPERTIES, INC. (the "Guarantor") in favor of BARNETT
BANK, N.A. (the "Bank").

                             W I T N E S S E T H :

         Armor Holdings, Inc. (the "Borrower") and the Bank are parties to a
Loan Agreement (as amended or restated from time to time, the "Loan
Agreement") of even date herewith. The Borrower, pursuant to the Loan
Agreement, has executed and delivered a promissory note (as amended, extended
or renewed from time to time, the "Note") of even date herewith in the
original principal amount of $10,000,000.00 in favor of the Bank. As an
inducement to the Bank to extend, renew, or continue credit to the Borrower,
the Guarantor has agreed to guarantee certain Obligations (as defined below)
of the Borrower and to execute and deliver this Guaranty.

         NOW, THEREFORE, in consideration of loans, advances or other credit
now or hereafter made or extended by the Bank to the Borrower, and to enable
such loans, advances or other credit to be maintained or obtained by the
Borrower, and for other valuable consideration, the receipt and sufficiency of
which are hereby acknowledged by the Guarantor, the Guarantor hereby agrees
with the Bank as follows:

          1. The Guarantor hereby irrevocably guarantees the payment to the
Bank when due, whether by acceleration or otherwise, of all Obligations of the
Borrower to the Bank (subject, however, to the limitations set forth in
paragraph 23 hereof). As used in this Agreement, the term "Obligations" means:
(a) all principal, interest, costs, expenses and other amounts now or
hereafter due under the Note (including, without limitation, all principal
amounts advanced thereunder before, on or after the date hereof); and (b) all
other amounts now or hereafter payable by the Borrower under any of the Loan
Documents (as such term is defined in the Loan Agreement).

          2. If any of the Obligations are not paid when due, after the
expiration of any applicable cure period, the Guarantor will forthwith pay all
such Obligations of the Borrower to the Bank (subject, however, to the
limitations set forth in paragraph 23 hereof). The Guarantor further agrees to
pay the Bank, upon demand, all reasonable costs and expenses, including
reasonable attorneys' and legal assistants' fees incurred in
connection with any trial or appellate proceedings or otherwise, that may be
incurred by the Bank in exercising its rights and remedies with respect to
payment of the Obligations or its rights and remedies against the Guarantor
under this Agreement.

          3. The Guarantor hereby:



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           (a) Assents to all terms and agreements heretofore or
  hereafter made by the Borrower with the Bank;

           (b) Agrees to make all payments hereunder in lawful
  money of the United States of America in immediately available
  funds without setoff or counterclaim;

           (c) Consents that the Bank may, without further consent from
  or notice to the Guarantor, and without in any way diminishing the
  obligation of the Guarantor under this Agreement:

                             (i) Exchange, release or surrender to the
           Borrower or to any guarantor, pledgor, or grantor any
           collateral, or waive, release or subordinate any security
           interest, in whole or in part, now or hereafter held as
           security for any of the Obligations;

                             (ii) Accept any new collateral for the Obliga-
           tions;

                             (iii) Waive or delay the exercise of any of its
           rights or remedies against the Borrower or any other
           person or entity, including, without limitation, any
           other guarantor;

                  	      (iv) Release any other guarantor or endorser
           from any liability;

                              (v) Renew, extend, or modify the terms of any
           of the Obligations or any instrument or agreement
           evidencing the same;

                              (vi) Apply payments by the Borrower, the
           Guarantor, or any other person or entity, to the Obligations
           or to other indebtedness of any such person or entity in
           such order as the Bank, in its discretion, deems
           appropriate;

                              (vii) Abstain from taking advantage of or real-
           izing upon any security interest or other guarantee;

           (d) Waives all notice of:

                              (i) The Bank's acceptance hereof or its inten-
           tion to act, or its action, in reliance hereon;

                              (ii) The present existence or future incurring
           of any of the Obligations or any terms or amounts thereof
           or any change therein;


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                              (iii) Any default by the Borrower, any endorser,
         surety, pledgor, grantor of security, or guarantor; and

                              (iv) The obtaining or release of any guaranty
         or surety agreement (in addition to this Agreement),
         pledge, assignment, or other security for any of the
         Obligations; and

                  (e) Waives notice of presentment, demand, notice of demand,
         presentment for payment, protest, notice of nonpayment or dishonor,
         notice of protest and any other demands and notices required by law
         in connection with this Guaranty or any instrument evidencing any
         Obligations, except as such waiver may be expressly prohibited by
         law, and waives any requirement that suit against it under this
         Agreement be brought within any period of time shorter than the
         general statute of limitations applicable to contracts under seal.

          4. The Guarantor hereby waives and agrees not to assert or
take advantage of:

                  (a) any defense arising by virtue of:

                            (i) the lack of authority, death or disability
                  of any other party, or revocation hereof by any other
                  party;

                            (ii) the failure of the Bank to file or enforce
                  a claim of any kind; or

                            (iii) the failure of the Bank to record any
                  document or perfect any lien;

                  (b) notice of the existence, creation or incurring of any
         new or additional indebtedness, or obligation or any action or
         non-action on the part of the Borrower, the Bank, any endorser, any
         guarantor under this or any other instrument, any creditor of the
         Borrower, or any other person whomsoever, in connection with any
         obligation or evidence of indebtedness held by the Bank as collateral
         or in connection with any indebtedness or any obligation hereby
         guaranteed;

                  (c) any defense based upon an election of remedies by the
         Bank, including without limitation, an election to proceed by
         non-judicial rather than judicial foreclosure (if the right to
         proceed by non-judicial foreclosure is available to the Bank); and

                  (d) any duty on the part of the Bank to disclose to the
         Guarantor any facts which the Bank may now or hereafter know about
         the Borrower or any security for the Obligations, regardless of
         whether the Bank has reason to believe that any

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         such facts materially increase the risk beyond that which the
         Guarantor intends to assume or has reason to believe that such facts
         are unknown to the Guarantor or has a reasonable opportunity to
         communicate such facts to the Guarantor, it being understood and
         agreed that the Guarantor is fully responsible for being and keeping
         informed of the financial condition of the Borrower and the status of
         any security for the Obligations and of all circumstances bearing on
         the risk of non-payment of all Obligations hereby guaranteed.

          5. The Guarantor hereby waives any right or claim of right to cause
a marshaling of any of the Borrower's assets or the assets of any other
party now or hereinafter held as security for any Obligations.

          6. The Bank's rights hereunder shall not be impaired or stayed
as a result of any dissolution of the Borrower or any bankruptcy or insolvency
proceedings involving the Borrower (including, without limitation, any
discharge of the Borrower or its debts in any such proceedings). The
Obligations shall include, without limitation, any amounts advanced to or for
the benefit of the Borrower or any successor thereto from and after the
occurrence or commencement of any such dissolution or proceedings. If any such
bankruptcy or insolvency proceedings are commenced by or against the Borrower,
the full amount of all Obligations then outstanding shall become immediately
due and payable by the Guarantor (whether or not the Borrower then owes the
Obligations on an accelerated basis).

          7. The liability of the Guarantor under this Agreement is absolute,
irrevocable, unconditional, unlimited (except as set forth in paragraph 23
hereof) and continuing, without regard to the liability of any other person,
and shall not in any manner be affected by reason of any action taken or not
taken by the Bank, nor by the partial or complete unenforceability or
invalidity of any other guaranty or surety agreement, pledge, assignment or
other security for any of the Obligations. Failure to sign this or any other
guarantee by any other person shall not discharge the liability of any signer.
No delay in making demand on the Guarantor for satisfaction of its liability
hereunder shall prejudice the Bank's right to enforce such satisfaction.
All of the Bank's rights and remedies shall be cumulative and any failure
of the Bank to exercise any right hereunder shall not be construed as a waiver
of the right to exercise the same or any other right at any time, and from
time to time, thereafter.

          8. This Guaranty shall continue in effect until the last to occur
of: (a) the payment of all Obligations, including any renewals, extensions or
modifications thereof, in full if such payments of the Obligations have become
final and are not subject to being refunded as a preference or fraudulent
transfer under the Bankruptcy Code or other applicable law; and (b) the
termination of

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all loan agreements, loan documents and loan commitments between
the Borrower and the Bank.

          9. This Guaranty is fully enforceable regardless of any defenses
which the Borrower may assert on the underlying debt, including but not
limited to failure of consideration, breach of warranty, payment, statute of
frauds, statute of limitations, accord and satisfaction, and usury.

         10. The Guarantor agrees that, if at any time all or any part of any
payment previously applied by the Bank to any of the Obligations must be
returned by the Bank for any reason, whether by court order, administrative
order, or settlement, the Guarantor shall be liable for the full amount
returned as if such amount had never been received by the Bank,
notwithstanding any termination of this Agreement or the cancellation of any
note or other agreement evidencing any of the Obligations.

         11. The Bank shall have the right to proceed against the Guarantor
without first proceeding against the Borrower or any property securing payment
of the Note, or any of the loan documents, or any other guarantor or endorser
of the Note or the Obligations.

         12. The Guarantor waives and agrees not to assert any right to which
it may be or become entitled, whether by subrogation, contribution, indemnity,
reimbursement or otherwise, against the Borrower, any other guarantor or any
of their respective properties, by reason of the performance by the Guarantor
of its obligations under this Agreement, under any pledge or security
agreement or otherwise.

         13. To secure the prompt payment and performance of the Obligations,
the Guarantor grants to the Bank a continuing first lien security interest in
all property of the Guarantor now or at any time hereafter in the possession
of the Bank and all proceeds of all such property. The Guarantor agrees that
the Bank shall have the rights and remedies of a secured party under the
Uniform Commercial Code as adopted by the State of Florida with respect to
such property, including, without limitation the right to sell or otherwise
dispose of any or all of such property. The Bank may, without further notice
to anyone, apply or set off any balances, credits, deposits, accounts, monies
or other indebtedness at any time created by or due from the Bank to the
Guarantor against the amounts due hereunder. Any notification of intended
disposition of any property required by law shall be deemed reasonable and
properly given if given at least five (5) calendar days before such
disposition.

         14. The Guarantor represents and warrants to the Bank that:


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                  (a) The Guarantor: (i) is duly organized, validly existing
         and in good standing under the laws of the state or country of its
         incorporation and in all other states where the nature and extent of
         the business transacted by it or the ownership of its assets makes
         such qualification necessary (except where the failure to be so
         qualified would not have a material adverse effect on the Guarantor);
         (ii) has the corporate power and authority to own its properties and
         to carry on its business as now being conducted; (iii) to the extent
         necessary, is qualified to do business in the State of Florida; (iv)
         is in compliance in all material respects with all laws, orders,
         regulations, authorizations and similar matters (collectively the
         "Governmental Requirements") of all governmental authorities, whether
         federal, state, county, or municipal (collectively the "Governmental
         Authority") applicable to it, except where the failure to be in
         compliance will not have a material adverse effect on the Guarantor;
         (v) represents that all of its issued and outstanding stock is fully
         paid and nonassessable, there are no outstanding rights or options to
         acquire any additional stock, and its stock has not been pledged or
         encumbered in any manner whatsoever; and (vi) has not amended or
         modified its articles of incorporation or its bylaws except as
         previously disclosed in writing to the Bank prior to the execution
         hereof.

                  (b) The execution, delivery and performance by the Guarantor
         of this Guaranty: (i) is within the corporate powers and purposes of
         the Guarantor; (ii) has been duly authorized by all requisite
         corporate action of the Guarantor; (iii) does not require the
         approval of any Governmental Authority; and (iv) will not violate any
         material Governmental Requirement, the articles of incorporation and
         bylaws of the Guarantor or any material indenture, agreement or other
         instrument to which the Guarantor is a party or by which it or any of
         its property is bound, or be in conflict with, result in a breach of
         or constitute (with due notice or the lapse of time, or both) a
         default under any such material indenture, agreement or other
         instrument, or result in the creation or imposition of any lien,
         charge or encumbrance of any nature whatsoever upon any of its
         property or assets, except as contemplated by the provisions of this
         Guaranty.

                  (c) This Guaranty when executed and delivered by the
         Guarantor will constitute the legal, valid and binding obligation of
         the Guarantor enforceable in accordance with the terms hereof.

                  (d) Except as previously disclosed by the Guarantor to the
         Bank in writing, there are no judgments outstanding against the
         Guarantor and there is no action, suit, proceeding, or investigation
         now pending (or to the best of the Guarantor's knowledge after
         diligent inquiry threatened)

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         against, involving or affecting the Guarantor or any of its
         properties or any part thereof, at law, in equity or before any
         Governmental Authority that if adversely determined as to the
         Guarantor, would result in a material adverse change in the business
         or financial condition of the Guarantor, or the Guarantor's
         operation and ownership of any of its properties, nor to the
         Guarantor's best knowledge is there any basis for such action, suit,
         proceeding, or investigation.

                  (e) The Guarantor is not insolvent and will not be
         rendered insolvent by the execution, delivery, payment and
         performance of this Guaranty.

                  (f) Until the Obligations have been paid and performed in
         full and the Guarantor shall have performed all of its obligations
         hereunder, the Guarantor shall not, directly or indirectly, sell,
         convey, or transfer or permit to be sold, conveyed, or transferred
         any of its assets to any party or entity to which the Guarantor is
         related or in which the Guarantor has an interest except on
         arm's-length terms for fair value in the ordinary course of
         business and except as otherwise permitted in the Loan Agreement.

         15. The Guarantor acknowledges that the Bank has relied upon the
Guarantor's representations, has made no independent investigation of the
truth thereof and is not charged with any knowledge contrary thereto that may
have been received by any officer, director, employee, or shareholder of the
Bank. The Guarantor further acknowledges that it has not been induced to
execute and deliver this Guaranty as a result of, and is not relying upon, any
representations, warranties, agreements, or conditions, whether express or
implied, written or oral, by the Bank or by any officer, director, employee,
or shareholder of the Bank.

         16. The Guarantor agrees that there shall be no material change (a
material change is agreed to be more than 25%) in the ownership or control of
the Guarantor without the prior express written consent of the Bank.

         17. Notwithstanding anything to the contrary contained in this
Guaranty or in the Note or the Loan Documents, the parties intend that any
interest for which the Guarantor is obligated hereunder shall not exceed the
maximum amount of interest permitted to be enforced against the Guarantor
under the applicable laws relating to usury.

         18. The Guarantor agrees that this Agreement shall be
governed by the substantive law of the State of Florida, without
regard to principles of conflicts of laws.


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         19. Without in any way limiting the foregoing, the Guarantor
hereby waives any other act or omission of the Bank which may
change the scope of the Guarantor's risk.

         20. All communications, notices or demands provided for hereunder
shall be sent by first class mail, by courier, by hand or by certified mail as
follows or to such other address with respect to any party as such party shall
notify the others in writing:

         To the Bank:             Barnett Bank, N.A.
                                  50 North Laura Street
                                  Jacksonville, Florida 32202
                                  Attn:  Corporate Banking Group

         To the Guarantor:        Armor Holdings Properties, Inc.
                                  191 Nassau Place Road
                                  Yulee, Florida 32097
                                  Attn:  President

                                  With a copy to:

                                  Kane Kessler, P.C.
                                  13150 Avenue of the Americas
                                  New York, New York 10019
                                  Attn: Robert L. Lawrence, Esq.

Each such communication, notice or demand shall be deemed given: (i) when
deposited in the mail with proper postage affixed if sent by mail; or (ii)
when actually delivered to the appropriate address if sent by courier or by
hand.

         21. This Agreement shall inure to the benefit of the Bank, its
successors and assigns, and to any person to whom the Bank may grant an
interest in any of the Obligations, and shall be binding upon the Guarantor
and its respective successors and assigns. This Agreement shall not be
modified except by instrument in writing signed by Guarantor and the Bank. No
waiver by the Bank of any term hereof shall be valid unless the Bank has
executed a written waiver of such term.

         22. This Agreement is intended to take effect as a document
under seal.

         23. Notwithstanding any contrary provision set forth herein, the
liability of the Guarantor with respect to the Obligations shall not exceed at
any time the Maximum Amount (as defined herein). The "Maximum Amount" shall
mean the greater of:

                  (a) the aggregate amount of all advances to the
         Guarantor made directly or indirectly with the proceeds of the
         Note or other Loan Documents; or


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                  (b) 95% of: (i) the fair salable value of the assets of the
         Guarantor as of the date hereof; minus (ii) the total liabilities of
         the Guarantor (including contingent liabilities, but excluding
         liabilities of the Guarantor under this Guaranty and the other Loan
         Documents executed by the Guarantor) as of the date hereof (except,
         however, that if the calculation of the Maximum Amount in the manner
         provided in this subparagraph (b) as of the date payment is required
         of the Guarantor pursuant to this Guaranty would result in a greater
         positive number, then the Maximum Amount shall be deemed to be such
         greater positive number).

         IN WITNESS WHEREOF, the Guarantor, intending to be legally bound
hereby, has duly executed this Guaranty of Payment on or as of the date and
year first above written.


                                ARMOR HOLDINGS PROPERTIES, INC.


                                By:__________________________________

                                   Its:______________________________


                                                           (Corporate Seal)


STATE OF GEORGIA
COUNTY OF CAMDEN

         The foregoing instrument was executed, acknowledged and delivered
before me this _____ day of November, 1996, by ________________________ the
_____________________ of Armor Holdings Properties, Inc., on behalf of the
corporation, in Camden County, Georgia.

                                         ------------------------------
                                         Notary Public, State and County
                                            aforesaid
                                         Print Name: __________________
                                         My Commission Expires:

                                                  [Notary Seal]


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