Document:

Guaranty Agreement

 
EXHIBIT
10.3.10 
 
GUARANTY AGREEMENT

 
This Guaranty Agreement, dated as of May 8,
2003, is executed by LEWIS GOULD, an individual resident of Florida (the “Guarantor”) to FLEET CAPITAL CORPORATION (the “Agent”), a Rhode Island corporation having an office at One Landmark Square,
Stamford, Connecticut 06901, as agent for itself and HSBC Bank USA (the “Lenders”). 
 
BACKGROUND 
 
A. Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in that certain Second Amended and Restated Loan Agreement between the Agent, the Lenders, and the Borrower
dated as of even date herewith (the “Loan Agreement”). 
 
B. Pursuant to the Loan Agreement, the Borrower is indebted to the Lenders for, among other things, (i) a certain revolving credit facility made available to the Borrower in the original principal amount of $23,000,000 (the
“Revolving Loan”), (ii) a certain term loan issued to the Borrower in the original principal amount of $4,000,000 (the “2002 Term Loan”) and (iii) a certain term loan issued to the Borrower in the original principal
amount of $4,500,000 (the “2003 Term Loan”). 
 
C. The 2003 Term Loan is evidenced by (i) a certain term note issued by the Borrower in favor of Fleet Capital Corporation in the original principal amount of $2,700,000 (the “FCC 2003 Term Note”) and (ii) a certain
term note issued by the Borrower in favor of HSBC Bank USA (“HSBC”) in the original principal amount of $1,800,000 (the “HSBC 2003 Term Note”, collectively, the FCC 2003 Term Note and the HSBC 2003 Term Note shall
hereinafter be referred to as, the “2003 TermNotes”). 
 
D. In consideration of and as a material inducement for the Agent, for the ratable benefit of the Lender, issuing the 2003 Term Loan to the Borrower, the Guarantor does hereby represent, warrant,
covenant, and agree as follows: 
 
AGREEMENT 
 
ARTICLE I. 
COVENANTS AND AGREEMENTS 
 
Section 1. The Guaranty. The Guarantor hereby absolutely and unconditionally guarantees to the Agent,
for the ratable benefit of the Lenders, the full and prompt payment and performance of all liabilities of the Borrower to both the Agent and the Lender, whenever and however arising under the 2003 Term Loan. As used herein, “liabilities”
means the indebtedness, liabilities and obligations of the Borrower to both the Agent and the Lenders of every kind and description relating to the 2003 Term Loan whether direct or indirect, primary or secondary, absolute or contingent, due or to
become due, now existing or hereafter arising, regardless of how they arise 
 

 
or by what agreement or
instrument they may be evidenced or whether evidenced by any agreement or instrument, including, without limitation, the Loan Agreement, and all extensions, renewals and substitutions therefor, and further including, without limitation, all
reasonable costs, reasonable expenses and reasonable attorneys’ and other professionals’ fees incurred in the collection of the 2003 Term Loan and in any litigation arising from the 2003 Term Loan or this Guaranty or in the defense,
protection, preservation, realization or enforcement of any rights, liens or remedies against the Borrower solely with respect to the 2003 Term Loan or in the defense, protection, preservation, realization and enforcement of any rights, liens or
remedies against the Guarantor under this Guaranty. All payments by the Guarantor shall be paid in lawful money of the United States of America. Each and every payment obligation or liability guaranteed hereunder shall give rise to a separate cause
of action, and separate suits may but need not be brought hereunder as each cause of action arises. The maximum liability of Guarantor hereunder shall be $3,000,000 plus the costs, expenses and fees described in this Section 1. 
 
Section 2. Unconditional Nature of Guaranty.

 
The liabilities of the Guarantor under this
Guaranty shall be absolute and unconditional and shall remain in full force and effect until every payment, obligation or liability guaranteed hereunder shall have been fully and finally paid and performed. The Guarantor further guarantees that all
payments made by the Borrower with respect to any liabilities hereby guaranteed will, when made, be final and agrees that if any such payment is recovered from or repaid by either the Agent or any Lender, in whole or in part in any bankruptcy,
insolvency or similar proceeding instituted by or against the Borrower, this Guaranty shall continue to be fully applicable to such liabilities to the same extent as though the payment so recovered or repaid had never been originally made on such
liabilities. The obligations of the Guarantor shall not be affected, modified, released, discharged or impaired, in whole or in part, upon the happening from time to time of any event, including, without limitation, any of the following, whether or
not with notice to, or consent of, the Guarantor: 
 
(1) The compromise, settlement, release, change or modification, whether material or otherwise, or termination of any or all of the liabilities; 
 
(2) The failure to give notice to the Guarantor of the occurrence of an event of default under the terms and
provisions of this Guaranty, or any of the other instruments, agreements or documents evidencing, securing or otherwise relating to any of the liabilities or securing or otherwise relating to the 2003 Term Loan, and this Guaranty (collectively,
including the Loan Agreement and this Guaranty, the “Loan Documents”); 
 
(3) The modification, amendment, recession or waiver by the Agent or any Lender of the payment, performance or observance by the Borrower or the Guarantor of any of their respective obligations,
conditions, covenants or agreements contained in any of the Loan Documents; 
 

2 

 
(4) The
extension of time for payment of any principal, interest or any other amount due and owing under any of the Loan Documents, or of the time for performance of any other obligations, covenants or agreements under or arising out of any of the Loan
Documents, or the extension or the renewal of any thereof; 
 
(5) The modification or amendment (whether material or otherwise) of any duty, obligation, covenant or agreement set forth in any of the Loan Documents; 
 
(6) The taking or the failure to take any of the actions referred to in any of the Loan Documents;

 
(7) Any failure, omission, delay or lack on the
part of either the Agent or any Lender to enforce, assert or exercise any right, power or remedy conferred on the Agent or such Lender in any of the Loan Documents; 
 
(8) The full or partial discharge of the Borrower in bankruptcy or similar proceeding or otherwise;

 
(9) The release or discharge, in whole or in
part, or the death, bankruptcy, liquidation or dissolution of any other person or entity other than the Guarantor which is primarily or secondarily liable with respect to the liabilities; 
 
(10) The addition, exchange, release or surrender of all or any of the collateral held by the Agent, for the
ratable benefit of the Lenders, as security for the liabilities; or 
 
(11) The default or failure of the Guarantor fully to perform any of the Guarantor’s liabilities or obligations set forth in this Guaranty. 
 
The Guarantor agrees that no delay, act of commission or omission of any kind or at any time upon the part of either the
Agent or the Lenders or their successors and assigns with respect to any matter whatsoever shall in any way impair the rights of the Agent, for the ratable benefit of the Lender, to enforce any right, power or benefit under this Guaranty or any of
the other Loan Documents to which the Guarantor is a party or be construed to be a waiver thereof. Any such right may be exercised from time to time and as often as may be deemed expedient. No set-off, counterclaim, reduction, or diminution of any
obligation, or any defense of any kind or nature which the Guarantor has or may have against the Agent or the Lenders, or any assignee or successor thereof shall be available hereunder to the Guarantor against the Agent or the Lenders or their
successors and assigns. 
 
To the extent not otherwise expressly
provided herein, the Guarantor expressly waives all defenses of suretyship or impairment of collateral. 
 

3 

 
Section 3.
Right of the Agent to Proceed Against the Guarantor. 
 
The
Agent, for the ratable benefit of the Lenders, in its sole discretion, shall have the right to proceed first and directly against the Guarantor under this Guaranty without proceeding against or exhausting any other remedies which it may have against
the Borrower or any other person primarily or secondarily liable for any of the liabilities and without resorting to any security held by the Agent. Upon any Event of Default of the Guarantor under this Guaranty, or of the Borrower under the Loan
Agreement or the 2003 Term Notes, the liability of Guarantor shall not be effective until twenty (20) days after the Guarantor’s receipt of notice of such Event of Default if such Event of Default is not cured or waived prior to the end of such
period. No delay or omission in exercising any right hereunder shall operate as a waiver of such right or any other right. 
 
This Guaranty is entered into by the Guarantor for the benefit of the Agent, the Lenders, and their permitted successors and assigns, all of whom shall be
entitled to enforce performance and observance of this Guaranty. 
 
Section 4. Waivers, Payment of Costs and Other Agreements. 
 
THE GUARANTOR ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS GUARANTY IS A PART IS A COMMERCIAL TRANSACTION, AND HEREBY WAIVES THE GUARANTOR’S RIGHTS TO NOTICE AND HEARING UNDER CHAPTER 903a OF THE CONNECTICUT GENERAL
STATUTES, OR AS OTHERWISE ALLOWED BY ANY STATE OR FEDERAL LAW WITH RESPECT TO ANY PREJUDGMENT REMEDY WHICH THE AGENT, FOR THE RATABLE BENEFIT OF THE LENDERS, MAY DESIRE TO USE, AND FURTHER WAIVES THE GUARANTOR’S RIGHTS TO REQUEST THAT EITHER
THE AGENT OR THE LENDERS, POST A BOND, WITH OR WITHOUT SURETY, TO PROTECT THE GUARANTOR AGAINST DAMAGES THAT MAY BE CAUSED BY ANY PREJUDGMENT REMEDY SOUGHT OR OBTAINED BY THE AGENT, FOR THE RATABLE BENEFIT OF THE LENDERS. THE GUARANTOR HEREBY
FURTHER EXPRESSLY WAIVES DILIGENCE, DEMAND, PRESENTMENT, PROTEST, NOTICE OF NONPAYMENT OR PROTEST, NOTICE OF THE ACCEPTANCE OF THIS GUARANTY, NOTICE OF ANY RENEWALS OR EXTENSIONS OF THE 2003 TERM NOTES AND OF ANY ACCOMMODATIONS MADE OR EXTENSIONS OR
OTHER FINANCIAL ACCOMMODATIONS GRANTED TO THE BORROWER OR OTHER ACTION TAKEN IN RELIANCE HEREON AND ALL OTHER DEMANDS AND NOTICES OF ANY DESCRIPTION IN CONNECTION WITH THIS GUARANTY, ANY OF THE LIABILITIES OR OTHERWISE. 
 

4 

 
THE GUARANTOR HEREBY WAIVES
TRIAL BY JURY IN ANY COURT AND IN ANY SUIT, ACTION OR PROCEEDING ON ANY MATTER ARISING IN CONNECTION WITH OR IN ANY WAY RELATED TO THE TRANSACTIONS OF WHICH THIS GUARANTY IS A PART AND/OR THE ENFORCEMENT OF ANY OF THE AGENT’S OR THE
LENDER’S RIGHTS AND REMEDIES, INCLUDING WITHOUT LIMITATION, TORT CLAIMS. THE GUARANTOR ACKNOWLEDGES THAT THE GUARANTOR MAKES THIS WAIVER KNOWINGLY, VOLUNTARILY, WITHOUT DURESS AND ONLY AFTER CONSIDERATION OF THE RAMIFICATIONS OF THIS WAIVER
WITH THE GUARANTOR’S ATTORNEYS. THE GUARANTOR FURTHER ACKNOWLEDGES THAT NEITHER THE AGENT NOR THE LENDER HAS AGREED WITH OR REPRESENTED TO THE GUARANTOR THAT THE PROVISIONS OF THIS PARAGRAPH WILL NOT BE FULLY ENFORCED IN ALL INSTANCES.

 
The Guarantor hereby fully subordinates to the liabilities owed
to both the Agent and the Lenders (i) any right of subrogation that the Guarantor may have against the Borrower, including without limitation, any right of subrogation by virtue of the Guarantor’s making payments hereunder, and (ii) any other
claims that the Guarantor may have against the Borrower and any other indebtedness, direct or indirect, absolute or contingent, that the Borrower may now or hereafter owe to the Guarantor, provided, however, that the Guarantor shall not be
obligated to subordinate any claim for salary and tax distributions from the Borrower to which the Guarantor is entitled and which are permitted pursuant to the Loan Agreement (the rights, claims and indebtedness referred to in clauses (i) and (ii)
being collectively referred to herein as “Subordinated Claims”). So long as an Event of Default has occurred and is continuing, the Guarantor will not accept any payment upon any of the Subordinated Claims, and will not have the
right to take action to collect any of the Subordinated Claims, until the liabilities have been fully and finally paid. 
 
THE GUARANTOR ACKNOWLEDGES THAT GUARANTOR MAKES THE WAIVERS SET FORTH IN SUBSECTIONS (1), (2) AND (3) ABOVE KNOWINGLY AND VOLUNTARILY, WITHOUT DURESS AND
ONLY AFTER CONSIDERATION OF THE RAMIFICATIONS OF THOSE WAIVERS WITH THE GUARANTOR’S ATTORNEY. THE GUARANTOR FURTHER ACKNOWLEDGES THAT NEITHER THE AGENT NOR ANY LENDER HAS AGREED WITH OR REPRESENTED TO THE GUARANTOR OR ANY OTHER PARTY HERETO
THAT THE PROVISIONS OF SUBSECTIONS (1), (2) AND (3) ABOVE WILL NOT BE FULLY ENFORCED IN ALL INSTANCES. 
 
The Guarantor agrees to pay all reasonable costs and expenses, including reasonable fees of attorneys, paralegals and other professionals, arising out of or with respect to the validity, enforcement,
realization, protection or preservation of this Guaranty or any of the liabilities. 
 
If, for any reason, the Borrower has no legal existence or is under no legal obligation to discharge any liabilities subject to this Guaranty or if any liabilities subject to this Guaranty have become irrecoverable from the
Borrower by operation of law or for any other reason, this Guaranty shall nevertheless be binding on the Guarantor to the same extent as if the Guarantor at all times had been the principal obligor on all such liabilities. In the event that
acceleration of the time for payment of 
 

5 

 
any liabilities subject to
this Guaranty is stayed upon the insolvency, bankruptcy or reorganization of the Borrower, or for any other reason, all such amounts otherwise subject to acceleration under the terms of the 2003 Term Notes or any of the other Loan Documents shall be
immediately due and payable by the Guarantor, without notice or demand. 
 
Section 5. Set-off. The Guarantor hereby gives the Agent, for the ratable benefit of the Lenders, a lien and, at any time after the occurrence of an Event of Default, a right of set-off for all the Guarantor’s
liabilities to both the Agent and the Lenders upon and against all the Guarantor’s deposits, credits, collateral and property now or hereafter in the possession or control of the Agent, or in transit to it. The Agent, for the ratable benefit of
the Lenders, may, at any time following the occurrence of an Event of Default, without notice to the Guarantor, apply or set-off the same, or any part thereof (if the Agent, reasonably believes that such Event of Default continues to exist as of the
date of such application or set-off), to any liability of the Guarantor to either the Agent or the Lenders, whether or not the Agent, shall have made demand under this Guaranty and although such obligations may be contingent or unmatured.

 
ARTICLE II. 
REPRESENTATIONS, WARRANTIES AND COVENANTS 
 
Section 1. The Guarantor Representations, Warranties and Covenants. The Guarantor hereby represents, warrants and covenants that:

 
(1) The Guarantor is an individual and has the
power and authority to execute this Guaranty and incur the obligations hereunder. 
 
(2) Neither the execution and delivery of this Guaranty and the 2003 Term Notes, the consummation of the transactions contemplated hereby nor the fulfillment of or compliance with the terms and
conditions of this Guaranty is prevented or limited by or conflicts with or results in a breach of the terms, conditions or provisions of any contractual or other restriction on the Guarantor or any agreement or instrument of whatever nature to
which the Guarantor is now a party or by which the Guarantor or the Guarantor’s property is bound or constitutes a default under any of the foregoing. 
 
(3) The Guarantor has received and will receive a direct and material financial benefit from the accommodations extended by the Agent, and
the Lenders, to the Borrower. 
 
(4) All
authorizations, consents and approvals of governmental bodies or agencies required in connection with the execution and delivery of this Guaranty and the 2003 Term Notes, or in connection with the performance of the Guarantor’s obligations
hereunder or thereunder have been obtained as required hereunder or by law. 
 
(5) This Guaranty constitutes a valid and legally binding obligation of the Guarantor, enforceable in accordance with its terms. 
 

6 

 
(6) There is
no action or proceeding pending or to the best of the Guarantor’s knowledge threatened against the Guarantor before any court or administrative agency that might adversely affect the ability of the Guarantor to perform the Guarantor’s
obligations under this Guaranty. 
 
(7) The
Guarantor is solvent as of the date of and after giving effect to this Guaranty. 
 
(8) On or prior to November 30 of each year, but not earlier than eleven (11) months since the date of the most recent financial statement delivered hereunder, the Guarantor shall deliver to the Agent,
a financial statement which shall disclose all of the Guarantor’s assets, liabilities, net worth, income and contingent liabilities all in reasonable detail and acceptable to the Agent, and submitted on a form provided by the Agent, or on such
other form acceptable to the Agent. Each such financial statement shall be executed by the Guarantor and certified to be true, correct and complete. 
 
(9) Failure of the Guarantor to comply with any of the covenants herein shall constitute a default of the liabilities, entitling the
Agent, to exercise all rights and remedies set forth in any of the Loan Documents. 
 
ARTICLE III. 
NOTICE AND SERVICE OF PROCESS, 
PLEADINGS AND OTHER PAPERS 
 
Section 1. Designation of Agent for Service of Process. The Guarantor agrees that the Guarantor is subject to service of process in
the State of Connecticut and that the Guarantor will remain so subject so long as any of the liabilities are outstanding. If the Agent, has attempted unsuccessfully to serve the Guarantor in Connecticut, then the Guarantor hereby designates and
appoints, without power of revocation, the Secretary of the State of Connecticut as the Guarantor’s agent upon whom may be served all process, pleadings, notices or other papers which may be served upon the Guarantor as a result of any of the
Guarantor’s obligations under this Guaranty. 
 
Section 2. Consent to Jurisdiction. The Guarantor irrevocably (a) agrees that any suit, action or other legal proceeding arising out of this Guaranty may be brought in the courts of record of the State of Connecticut or the
courts of the United States located in such state; (b) consents to the jurisdiction of each such court in any such suit, action or proceeding; and (c) waives any objection which the Guarantor may have to the laying of venue of any such suit, action
or proceeding in any of such courts. For such time as any of the liabilities are outstanding, the Guarantor’s agent designated in Article III Section 1 hereof shall accept and acknowledge on the Guarantor’s behalf services of any and all
process in any such suit, action or proceeding brought in any such court. The Guarantor agrees and consents that any such services of process upon such agent and written notice of such service to the Guarantor by registered mail shall be taken and
held to be valid personal service upon the Guarantor and that any such service of process shall be of the same force and validity as if services were made upon the Guarantor according to the laws governing the validity and requirements of such
service in such state, and waives all claim of error by reason of any such service. 
 

7 

 
Section 3.
Notices, Etc. All notices, demands, requests, and other communications given under this Agreement shall only be effective if they are (i) in writing, (ii) actually received by the addressee, and (iii) sent by hand delivery, by facsimile
transmission, by reputable express delivery service, or by first-class mail, postage prepaid: 
 
If to the Agent, to it at: 
 
Fleet Capital Corporation 
One Landmark Square 
Stamford, CT 06901 
Attn: Deirdre Z. Sikora, Vice President 
 
with a copy to: 
 
Fleet Capital Corporation 
200 Glastonbury Boulevard 
Glastonbury, CT 06033

Attn: Loan Administration 
          QEP Account Officer 
 
If to the Guarantor, to him at: 
 
Lewis Gould 
c/o QEP Co., Inc. 
1081 Holland Drive 
Boca Raton, FL 33487 
 
With a copy to: 
 
Holland & Knight LLP 
701 Brickell Avenue 
Suite 3000 
Miami, FL 33131 
Attn: Steven Sonberg, Esq. 
 
or to such other address (and/or facsimile transmission number) as the Borrower or the Agent, as the case may be, shall have specified in a notice sent to
the other in accordance with this Section. 
 

8 

 
ARTICLE IV.

GENERAL 
 
Section 1. No Remedy Exclusive; Effect of Waiver. No remedy herein conferred upon or reserved to the Agent or the Lenders is
intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Guaranty or now or hereafter existing at law or in equity. In
order to entitle the Agent, to exercise any remedy reserved to the Agent or the Lenders in this Guaranty, it shall not be necessary to give any notice, other than such notice as may be herein expressly required. No waiver, amendment, release or
modification of this Guaranty shall be established by conduct, custom or course of dealing, but solely by an instrument in writing duly executed by the parties thereunto duly authorized. A waiver on one occasion shall not be a bar to or waiver of
any right of any other occasion. No delay or omissions or failure of performance hereunder shall impair any such right or power or shall be construed to be a waiver thereof, but such right and power may be exercised from time to time and as often
may be deemed expected. The Guarantor acknowledges that this Guaranty supersedes all prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof and is intended as a final expression and
a complete and exclusive statement of the terms of this Guaranty. 
 
Section 2. Counterparts. This Guaranty may be executed simultaneously in several counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

 
Section 3. Severability. The invalidity
or unenforceability of any one or more phrases, sentences, clauses, Articles or Sections contained in this Guaranty shall not affect the validity or enforceability of the remaining portions of this Guaranty, or any part thereof. 
 
Section 4. Connecticut Law. This Guaranty shall be
governed by the laws of the State of Connecticut (but not its conflicts of law provisions). 
 
Section 5. Termination. The amount owed by the Guarantor hereunder shall be reduced dollar-for-dollar by all principal payments made on the 2003 Term Loan. At such time as $3,000,000 of
principal has been indefeasibly repaid under the 2003 Term Loan, this Guaranty shall terminate and be of no further force or effect. Notwithstanding anything to the contrary in the 2003 Term Note, the amounts being guaranteed hereunder are limited
as provided in Article 1, Section 1 hereof. 
 
[Signature page to follow] 
 
 

9 

 
IN WITNESS
WHEREOF, the Guarantor has executed this Guaranty on the date first above written. 
 

	 
	
	 /s/    LEWIS GOULD

	 Lewis GouldAgreement

 
EXHIBIT
10.3.11 
 
AGREEMENT 
 
THIS AGREEMENT (“Agreement”) dated as of the
22nd day of May, 2003, is between Q.E.P. Co., Inc., a Delaware corporation (the “Company”) and Lewis Gould, the Company’s Chairman of the Board and Chief Executive Officer (“Mr. Gould”). All capitalized terms not otherwise
defined herein shall have the meanings ascribed to such terms in the Guaranty or the Loan Agreement (as hereinafter defined). 
 
WITNESSETH: 
 
WHEREAS, pursuant to that certain Second Amended and Restated Loan Agreement by and among the Company, Fleet Capital Corporation
(“Fleet”), and HSBC Bank USA (“HSBC” and together with Fleet, the “Lenders”), dated November 14, 2002, the Company is indebted to the Lenders for among other things, (i) a revolving credit facility made available to the
Company in the original principal amount of $23,000,000 (the “Revolver”); and (ii) a term loan issued to the Company in the original principal amount of $4,000,000 (the “2002 Term Loan”). 
 
WHEREAS, the Lenders have agreed to make an additional
term loan to the Company in the aggregate principal amount of $4,500,000, in or around May 2003, (the “2003 Term Loan”), such loan to be evidenced by promissory notes in favor of Fleet and HSBC, substantially in the form attached hereto as
Exhibit A (the “Notes”). 
 
WHEREAS, in connection with the 2003 Term Loan and as a condition to making the 2003 Term Loan, the Lenders require that Mr. Gould enter into a Guaranty Agreement substantially in the form attached hereto as Exhibit B (the
“Guaranty”), pursuant to which Mr. Gould would personally guaranty the Company’s obligations under the 2003 Term Loan up to a maximum possible liability of $3,000,000. 
 
WHEREAS, Mr. Gould has agreed to execute and enter into the Guaranty on behalf of the Company on the
terms and conditions set forth herein. 
 
NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 
1. Consideration for Guaranty.
The Company acknowledges and agrees that the Lenders would not make the 2003 Term Loan to the Company without the Guaranty and that the Company will derive substantial benefit as a 
 

 
result of the 2003 Term Loan.
To induce Mr. Gould to enter into the Guaranty on behalf of the Company and in consideration of the substantial benefit the Company will receive therefrom, the Company has agreed to deliver to Mr. Gould 50,000 shares of the Company’s common
stock within ten (10) days of his execution of the Guaranty. 
 
2. Indemnification. 
 
(a) The Company shall fully indemnify Mr. Gould to extent of all payments made by Mr. Gould to Lenders pursuant to the Guaranty. The Company shall also indemnify Mr. Gould to the fullest extent permitted by applicable law in the
event he is made a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative in nature arising by reason of or relating in any way to the
fact that he is a guarantor under the Guaranty, or by reason of anything done or not done by him in any such capacity. Pursuant to this Section, Mr. Gould shall be indemnified against all expenses (including reasonable attorneys’ fees), costs,
judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him in connection with any such action, suit or proceeding, including, but not limited to, the investigation, defense or appeal thereof. 
 
(b) In the event that any action is instituted by Mr. Gould
under this Agreement to enforce or interpret any of the terms hereof, Mr. Gould shall be entitled to all court costs and expenses, including reasonable attorneys’ fees, reasonably incurred with respect to such action, unless as a part of such
action, the court of competent jurisdiction determines that the action was not instituted in good faith or was frivolous. 
 
3. Priority of Claim. The Company and Mr. Gould acknowledge and agree that it is their intent that Mr. Gould, upon
making payment to the Lenders under the Guaranty, be fully subrogated to the Lenders’ rights under the 2003 Term Loan, including the rights to priority distribution and secured status to which the Lenders’ claims were entitled, subject in
all instances to subordination to the superior claims and rights of Lenders. Mr. Gould further acknowledges and agrees that he shall not take any action or institute any enforcement proceeding to recover monies paid out pursuant to the Guaranty
unless and until Lenders claims against the Company have been satisfied in full. The insolvency or bankruptcy of the Company shall not affect this Agreement and the same shall remain in full force and effect. 
 
4. Acknowledgement and Waiver of Conflict. The
Company hereby acknowledges and agrees that certain conflicts of interest exist or may arise as a result of Mr. Gould entering into and performing his obligations pursuant to the Guaranty and his duties as Chief Executive Officer of the Company. In

 
 

 
consideration of the
substantial benefits to be received by the Company as a result of Mr. Gould entering into the Guaranty, the Company hereby waives any conflict of interest arising by virtue of Mr. Gould’s roles as a guarantor and the Company’s Chief
Executive Officer, and agrees to acknowledge and approve the taking of any action by Mr. Gould reasonably necessary to protect and preserve his rights to recover monies paid under the Guaranty. The Company further acknowledges that the Audit
Committee of the Board of Directors has approved this Agreement and all of the terms and provisions herein, acting pursuant to a delegation of authority from the full Board of Directors and pursuant to its inherent powers under the Q.E.P. Co., Inc.
Audit Committee Charter. 
 
5. Amendments
to this Agreement. All modifications or amendments of this Agreement must be in writing and duly executed by Mr. Gould and an authorized officer of the Company to be binding and enforceable. 
 
6. No Assignments. Each party agrees that it
will not assign its respective rights and obligations under this Agreement without first obtaining the prior written consent of the other party hereto. 
 
7. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the respective successors and
assigns of each of the parties hereto. 
 
8.
Governing Law. This Agreement shall be governed as to validity, interpretation, enforcement, and effect by the laws of the State of Florida. 
 
9. Third Party Beneficiaries. This Agreement shall not benefit or create any right or cause of action in or on behalf of any person
other than parties hereto and their permitted respective successors and assigns. 
 
[Signatures on Following Page] 
 

 
IN WITNESS
WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written. 
 

	 Q.E.P. CO, INC.

	
	 By:
	 	 /s/     MARC APPLEBAUM

	 Name:
	 	 Marc Applebaum

	 Title:
	 	 Chief Financial Officer

	
	 LEWIS GOULD

	
	 By:
	 	 /s/     LEWIS GOULD

	 Name:
	 	 Lewis Gould

	 Title:
	 	 Chairman of the Board and Chief Executive Officer

 

 
Exhibit
A 
 
Promissory Note 
 

 
Exhibit
B 
 
Guaranty Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]