Document:

Secured Promissory Note

 EXHIBIT 10.18 
 SECURED PROMISSORY NOTE 
 $7,500,000     
 Providence, Rhode Island 
 July 19, 2005 
 LOAN: 
 FOR VALUE RECEIVED, Summer Infant, Inc., a Rhode Island
corporation, Summer Infant Europe Limited, a private company limited by shares organized under the laws of England and Wales with registered number 04322137, and Summer Infant Asia Limited, a Hong Kong corporation (collectively the
“Borrower”), jointly and severally, unconditionally promise to pay to Bank of America, N.A., a national banking association (“Bank”), or order, at its offices at 111 Westminster Street, Providence, Rhode Island, or at such
other place as may be designated in writing by Bank, the principal sum of Seven Million Five Hundred Thousand Dollars ($7,500,000), or, if less, the aggregate unpaid principal amount of advances made by Bank to Borrower under that certain Revolving
Credit Agreement between the Borrower and Bank dated as of even date (the “Loan Agreement”), together with interest in arrears from the date hereof on the unpaid principal balance hereunder, computed daily, at the RATE per annum indicated
below payable in accordance with the particular PAYMENT SCHEDULE indicated below. 
 DEFINITIONS: 
 “Alternate LIBOR Fixed Rate” shall mean a rate per annum equal to the Alternate LIBOR Rate plus one and three-fourths percent
(1.75%). 

 “Alternate LIBOR Rate” shall mean, as of any LIBOR Effective Date and for any
particular LIBOR Interest Period, a rate (rounded upward, if necessary, to the nearest one-hundred thousandth of a percentage point) determined on the basis of the rates for deposits in U.S. Dollars offered by the Reference Banks at approximately
11:00 a.m., London time, on the date that is two London Banking Days preceding the applicable LIBOR Effective Date (as hereinafter defined), for a term equal to the LIBOR Interest Period commencing on that LIBOR Effective Date and in an amount equal
to the LIBOR Portion. The Bank will request the principal London office of each of the Reference Banks to provide a quotation of its U.S. Dollar deposit offered rate. If at least two such quotations are provided, the rate as of that LIBOR
Effective Date will be the arithmetic mean of the quotations. If fewer than two quotations are provided as requested, the rate for that date will be determined on the basis of the rates quoted by major banks in New York City selected by the Bank at
approximately 11:00 am., New York City time, on the date that is two (2) London Banking days preceding the applicable LIBOR Effective Date, for loans in U.S. Dollars to leading European banks for a period equal to the LIBOR Interest Period
commencing on that LIBOR Effective Date and in an amount equal to the LIBOR Portion. 
 “Authorized Person” shall
mean a person designated from time to time in writing by Borrower. 
  

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 “Banking Day” shall mean, in respect of any city, any day on which commercial
banks are open for business (including dealings in foreign exchange and foreign currency deposits) in that city. 
 “Election” means an election by the Borrower to have a LIBOR Fixed Rate apply to a Revolving Loan Advance, or a portion thereof, pursuant to the terms and conditions of this Note. 
 “Fixed Rate Loan” means any Revolving Loan Advance, or that portion thereof, which bears interest at a LIBOR Fixed Rate.

 “Floating Rate Loan” means any Revolving Loan Advance, or that portion thereof, which bears interest at a rate
calculated with reference to the Prime Rate. 
 “Floating Rate” shall mean an annual rate of interest equal to the
Prime Rate less one-fourth of one percent (.25%). 
 “Legal Requirement” shall mean any requirement imposed upon the
Bank by any law of the United States of America or by any regulation, order, interpretation, ruling or official directive (whether or not having the force of law) of the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance
Corporation, or any other board or governmental or administrative agency of the United States of America, or any political subdivision of any thereof. 
 “LIBOR Fixed Rate” shall mean a rate per annum equal to the LIBOR Rate plus one and three-fourths percent (1.75%). 
  

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 “LIBOR Effective Date” means that date specified in a written notice from
Borrower to Bank given not less than two (2) London Banking Days prior to such date, indicating Borrower’s election to pay interest hereunder based on a LIBOR Fixed Rate commencing as of such date, subject to the terms and conditions
hereof. 
 “LIBOR Interest Period” shall mean, as to each Fixed Rate Loan, the period commencing on the date of the
making of such Fixed Rate Loan or the conversion of a Floating Rate Loan into a Fixed Rate Loan or the continuation of a Fixed Rate Loan as a Fixed Rate Loan, as the case may be, and ending thirty (30) days thereafter, as offered by the Bank;
provided that any such LIBOR Interest Period which would otherwise end on a day which is not a Business Day (as defined below) shall be extended to the next succeeding Business Day; and provided further that no LIBOR Interest Period may commence on
any day which is not a Business Day. 
 “LIBOR Portion” shall mean, in connection with an Election to accrue interest
at a LIBOR Fixed Rate, the principal amount of any Advance, or that portion thereof, subject to such Election. 
 “LIBOR
Rate” means, in relation to a LIBOR Interest Period, the rate per annum as determined on the basis of the offered rates for deposits in U.S. Dollars in an amount equal (as nearly as may be) to the LIBOR Portion as of the LIBOR Effective
Date and for a period equal to such LIBOR Interest Period which appears on the Telerate Page 3750 as of 11:00 a.m. London time, on the date that is two London Banking Days preceding the LIBOR Effective Date, as adjusted from time to time pursuant to
paragraphs I and 2 of the 

  

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TERMS AND CONDITIONS below. If the LIBOR Rate described above does not appear on the Telerate on any applicable interest determination date, all references
herein to the LIBOR Rate and the LIBOR Fixed Rate shall mean the Alternate LIBOR Rate and the Alternate LIBOR Fixed Rate, respectively (both as defined above). Each determination by the Bank of any LIBOR Rate shall, in the absence of manifest error,
be conclusive. 
 “Loan Agreement” means that certain Revolving Credit Agreement between Borrower and Bank dated as
of even date. 
 “Maturity Date” means April 30, 2006. 
 “Prime Rate” means the variable per annum rate of interest designated from time to time by Bank as its Prime Rate, with such rate
changing on the same day on which any change in the Prime Rate is effective without notice or demand of any kind. The Prime Rate is a reference rate and does not necessarily represent the lowest or best rate being charged to any customer.

 “Reference Banks” means four major banks in the London interbank market, as selected by the Bank. 
 “Reserves” shall mean any reserve, reserve asset, capital reserve, minimum capital requirement, special deposit, insurance
premium or assessment required by any Legal Requirement to be maintained or paid by the Bank for or with respect to (a) any deposits purchased in the London interbank foreign currency deposits market, (b) any deposit represented by a
certificate of deposit 

  

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issued by the Bank, (c) loans made with the proceeds of any such deposits, or (d) the principal amount of or interest on the LIBOR Portion
hereunder bearing interest at the LIBOR Rate, including any reserves imposed under Regulation D and any amounts payable to the Federal Deposit Insurance Corporation (the “FDIC”) or any successor thereto for insurance by the FDIC for time
deposits made in dollars. 
 “Revolving Loan Advance” shall have the meaning given that term in the Loan Agreement.

 “Tax” shall mean, in relation to the LIBOR Portion and applicable LIBOR Rate, any tax, levy, impost, duty,
deduction, withholding or other charges of whatever nature required by any Legal Requirement (a) to be paid by the Bank or (b) to be withheld or deducted from any payment otherwise required hereby to be made by the Borrower to the Bank,
provided that the term “Tax” shall not include any taxes imposed upon the net income of the Bank by the United States of America, the United Kingdom, Canada, the Bahamas or any political subdivision thereof. 
 “Telerate” means, when used in connection with any designated page and the determination of any LIBOR Rate, the display page so
designated on the Dow Jones Telerate Service (or such other page as may replace that page on that service, or such other service as may be nominated as the information vendor, for the purpose of displaying rates or prices comparable to the LIBOR
Rate). 
  

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 “U.S. Dollars” means the lawful currency of the United States of America.

 RATE: 
 All Advances shall constitute
Floating Rate Loans unless the Borrower shall have made an Election to have a Revolving Loan Advance bear interest at a LIBOR Fixed Rate. 
 The rate of
interest payable on Floating Rate Loans shall be a floating rate per annum equal to the Floating Rate. The rate of interest payable on Fixed Rate Loans will be the LIBOR Fixed Rate applicable thereto. 
 The Borrower may elect to (i) obtain a Revolving Loan Advance with interest thereon based on a LIBOR Fixed Rate, (ii) convert a Floating Rate Loan to a Fixed
Rate Loan, or (iii) continue a maturing Fixed Rate Loan effective as of the last day of the LIBOR Interest Period applicable thereto as a new Fixed Rate Loan, subject to the following terms and conditions: 
  

	 	(a)	Each request for the making, conversion into or continuation of a Fixed Rate Loan shall be for a minimum amount of One Hundred Thousand Dollars ($100,000), and in integral multiples
One Thousand Dollars ($1,000). An Election shall be made by the Borrower giving to the Lender written or telephonic notice within the time periods and containing the information described below (a “Fixed Rate Notice”).

  

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	 	(b)	In the case of a proposed Fixed Rate Loan, the Borrower may request the Lender for a quote as to a LIBOR Fixed Rate at any time and from time to time for an applicable LIBOR
Interest Period and amount; the Fixed Rate Notice applicable thereto must be received by the Lender not later than 3:00 p.m. (Providence time) on the Business Day two days prior to the first day of the LIBOR Interest Period to be applicable and must
specify the amount of principal to constitute a Fixed Rate Loan, the duration of the proposed LIBOR Interest Period, and the proposed commencement date and the final date of such LIBOR Interest Period. No later than 4:00 p.m. of the Business Day
prior to the commencement of the LIBOR Interest Period of such proposed Fixed Rate Loan, the Borrower will confirm the Fixed Rate Notice in writing if it has previously been communicated by telephone, and the Lender will confirm to the Borrower the
applicable LIBOR Fixed Rate. If such confirmation does not occur, the Lender may treat the Fixed Rate Notice as having been rescinded. 

  

	 	(c)	Any Fixed Rate Notice shall, upon receipt by the Lender and upon written confirmation as described above, become irrevocable and binding on the Borrower, and the Borrower shall,
upon demand by the Lender, indemnify the Lender against any loss or expense incurred by the Lender as a result of any failure by the Borrower to accept any requested Fixed Rate Loan, including, without limitation, any loss or expense incurred by
reason of the liquidation or redeployment of deposits or other funds required by the Lender to fund or maintain the Fixed Rate Loan to be made by the Lender. 

  

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	 	(d)	Each Fixed Rate Loan will automatically (unless a Fixed Rate Notice shall have been given as set forth herein) convert on the last day of the LIBOR Interest Period applicable
thereto into a Floating Rate Loan. 

  

	 	(e)	As to any Fixed Rate Loan, the Borrower may not elect to switch from calculating interest thereon from a fixed rate to a floating rate until the expiration of the LIBOR Interest
Period applicable thereto. 

  

	 	(f)	The Borrower may not elect any LIBOR Interest Period for a Fixed Rate Loan with a maturity subsequent to the Maturity Date. 

  

	 	(g)	No more than five (5) Fixed Rate Loans may be outstanding at any one time. 

 Interest will be calculated on the basis of the actual number of days elapsed over a year of 360 days. Whenever an Event of Default is in existence under this Note, the rate of interest on the unpaid principal and interest shall, at the
option of Bank, be at the Default Rate (hereinafter defined). 
 All agreements between Borrower and Bank are hereby expressly limited so that in no
contingency or event whatsoever, whether by reason of acceleration of maturity of the indebtedness evidenced hereby or otherwise, shall the amount paid or agreed to be paid to 

  

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Bank for the use or the forbearance of the indebtedness evidenced hereby exceed the maximum permissible under applicable law. As used herein, the term
“applicable law” shall mean the law in effect as of the date hereof, provided, however that in the event there is a change in the law which results in a higher permissible rate of interest, then this Note shall be governed by such new law
as of its effective date. In this regard, it is expressly agreed that it is the intent of Borrower and Bank in the execution, delivery and acceptance of this Note to contract in strict compliance with the laws of the State of Rhode Island from time
to time in effect. If, under or from any circumstances whatsoever, fulfillment of any provision hereof shall involve transcending the limit of such validity prescribed by applicable law, then the obligation to be fulfilled shall automatically be
reduced to the limits of such validity, and if under or from any circumstances whatsoever Bank should ever receive as interest an amount which would exceed the highest lawful rate, such amount which would be excessive interest shall be applied to
the reduction of the principal balance evidenced hereby and not to the payment of interest. This provision shall control every other provision of all agreements between Borrower and Bank. 
 PAYMENT SCHEDULE: 
 In the event that any payment of
principal and/or interest shall not be received by Bank within TEN (10) days of the due date, the Borrower shall, to the extent permitted by law, pay Bank not later than one (1) month thereafter a late charge of FIVE (5%) percent of
the overdue payment. 
  

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 All payments shall be applied first to the payment of all fees, expenses and other amounts due to the Bank (excluding
principal and interest), then to accrued interest, and the balance on account of outstanding principal; provided, however, that after the occurrence of an Event of Default (as defined below), payments will be applied to the obligations of Borrower
to Bank as Bank determines in its sole discretion. 
 Interest only shall be paid monthly commencing on August 1, 2005 and continuing on the same day of
each successive calendar month thereafter, until payment in full of the principal hereof, principal shall be paid at the times and upon the conditions set forth in the Loan Agreement. 
 If this Note or any payment hereunder becomes due on a day which is not a Business Day (as defined below), the due date of this Note or payment shall be extended to the next succeeding Business Day, and such extension
of time shall be included in computing interest and fees in connection with such payment. As used in this Note, “Business Day” shall mean any day other than a Saturday, Sunday or day which shall be in the State of Rhode Island a legal
holiday or day on which banking institutions are authorized or required to close. 
 All payments shall be made by Borrower to Bank in lawful currency of the
United States of America in immediately available funds, without counterclaim or setoff and free and clear of, and without any deduction or withholding for, any taxes or other payments. 
  

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 ADDITIONAL TERMS AND CONDITIONS: 
  

	1.	If at any time during the term of this Note, the Bank shall be required by any Legal Requirement (other than legal requirements imposed specifically on the Bank and not applicable
to national banks or FDIC-insured banks generally) to maintain any Reserves in respect of any LIBOR Portion, other than Reserves existing as of the date of the applicable Date of Determination, the LIBOR Rate shall be adjusted to reflect all
additional costs incurred or to be incurred by the Bank in maintaining such Reserves. Such costs shall be computed by determining the amount by which such Legal Requirement effectively increases the cost to the Bank of obtaining deposits of U.S.
Dollars in the London foreign currency deposits market in amounts equal to the LIBOR Portion. The determination by the Bank of the amount of such costs and the allocation, if any, of such costs among the Borrower and other customers of the Bank that
have arrangements with the Bank similar to the Borrower’s LIBOR Rate arrangement, if done in good faith and, with respect to such allocation, on an equitable basis, shall, in the absence of manifest error, be conclusive.

  

	2.	 It is the understanding of the Borrower and the Bank that the Bank shall receive payments of amounts of principal of and interest on this Note with respect to the
LIBOR Portion from time to time bearing interest under the LIBOR Rate free and clear of, and without deduction for, any Taxes. If (a)(i) the Bank shall be subject to any such Tax in respect of any such amount, or (ii) the Borrower shall be
required to withhold or deduct any such Tax from any such amount, and (b) such Tax shall not have existed as of the date of the applicable LIBOR Effective Date, the LIBOR Rate shall be adjusted to reflect all additional costs (including,
without limitation, any Taxes due to such adjustment) incurred or to be incurred by the Bank in connection with the payment by the Bank or the withholding by the Borrower of such Tax (including, without limitation, any penalties or interest or
expenses), 

  

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and the Borrower shall provide the Bank with a statement detailing the amount of any such Tax actually paid by the Borrower. The determination by the Bank of
the amount of such costs shall, in the absence of manifest error, be conclusive, and at the Borrower’s request, the Bank shall demonstrate the basis for such determination. If after any such adjustment and payment of the same by the Borrower,
any part of any Tax paid by the Bank is subsequently recovered by the Bank, the Bank shall reimburse the Borrower to the extent of the amount so recovered. A certificate of an officer of the Bank setting forth the amount of such recovery and the
basis therefor shall, in the absence of manifest error, be conclusive. 

  

	3.	Notwithstanding anything herein to the contrary, the following conditions must be met in order for the Bank to make the LIBOR Rate available to the Borrower:

 (a) There shall have occurred no change in applicable law which might make it unlawful in the opinion of
counsel for the Bank to obtain deposits of U.S. Dollars in the London interbank foreign deposits market; 
 (b) As of a LIBOR
Effective Date, there shall exist no Event of Default (as defined below) which is not waived by the Bank. 
 (c) The Bank
shall not have determined in good faith that it is unable to determine a LIBOR Rate in respect of a LIBOR Interest Period and the Bank shall not have determined that it is unable to obtain deposits of U.S. dollars in the London interbank foreign
currency deposits market in the applicable amounts and for such LIBOR Interest Period. 
  

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 In the event that a LIBOR Rate is not available, then the indebtedness evidenced by this Note shall bear
interest at a per annum rate equal to the Prime Rate less one-fourth of one percent. 
  

	4.	Throughout the term of this Note, the determination of a LIBOR Rate on each Date of Determination shall be irrevocable and binding upon the Borrower. 

  

	5.	Borrower may elect to prepay, upon three (3) days prior written notice, the principal outstanding hereunder subject to the following conditions: 

  

	 	(i)	During any period in which a Floating Rate is being charged, the principal outstanding hereunder may be prepaid in full or in part without premium or penalty.

  

	 	(ii)	During any period in which a LIBOR Rate is being charged, the principal outstanding hereunder may be prepaid only on the last day of a LIBOR Interest Period. Borrower shall pay to
Bank, upon request of Bank, such amount or amounts as shall be sufficient (in the reasonable opinion of Bank) to compensate it for any loss, cost or expense incurred as a result of (i) any such payment on a date other than the last day of a
LIBOR Interest Period or (ii) any failure by Borrower to borrow based on a LIBOR Rate on the date specified in Borrower’s notice to Bank. Without limiting the foregoing, Borrower shall pay to Bank a “yield maintenance fee” in an
amount computed as follows: The current rate for United States Treasury securities (bills on a discounted basis shall be converted to a bond equivalent) with a maturity date closest to the last day of the then LIBOR Interest Period shall be
subtracted from the LIBOR Rate in effect at the time of prepayment. If the result is zero or a negative number, there shall be no 

  

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prepayment premium. If the result is a positive number, then the resulting percentage shall be multiplied by the amount of the principal balance being
prepaid. The resulting amount shall be divided by 360 and multiplied by the number of days remaining in the then LIBOR Interest Period. Said amount shall be reduced to present value calculated by using the number of days remaining in the then LIBOR
Interest Period and using the above referenced United States Treasury securities rate. The resulting amount shall be the yield maintenance fee due to Bank upon the prepayment of a LIBOR loan. Said yield maintenance fee shall be due and payable, as
aforesaid, if the payment of principal due and owing hereunder is accelerated on account of an Event of Default (hereinafter described) hereunder 

  

	6.	 Borrower: (i) waives presentment, demand, notice of demand, protest, notice of protest and notice of nonpayment and any other notice required to be given under
the law to Borrower, in connection with the delivery, acceptance, performance, default or enforcement of this Note, of any indorsement or guaranty of this Note or of any document or instrument evidencing any security for payment of this Note;
(ii) consents to any and all delays, extensions, renewals or other modifications of this Note or waivers of any term hereof or release or discharge by Bank of any guarantor or release, substitution or exchange of any security for the payment
hereof or the failure to act on the part of Bank or any indulgence shown by Bank, from time to time and in one or more instances (without notice to or further assent from Borrower), and agrees that no such action, failure to act or failure to
exercise 

  

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any right or remedy, on the part of Bank shall in any way affect or impair the obligations of Borrower or be construed as a waiver by Bank of, or otherwise
affect, any of Bank’s rights under this Note, under any indorsement or guaranty of this Note or under any document or instrument evidencing any security for payment of this Note; and (iii) agrees to pay, on demand, all costs and expenses
of collection of this Note or of any indorsement or any guaranty hereof and/or the enforcement of Bank’s rights with respect to, or the administration, supervision, preservation, protection of, or realization upon, any property securing payment
hereof, including reasonable attorneys’ fees. 

  

	7.	This Note is delivered in and shall be construed under the internal laws (and not the law of conflicts or choice of law) of the State of Rhode Island, and in any litigation in
connection with, or enforcement of, this Note or of any indorsement or guaranty of this Note or any security given for payment hereof, Borrower CONSENTS TO AND CONFERS PERSONAL JURISDICTION ON COURTS OF THE STATE OF RHODE ISLAND OR OF THE FEDERAL
GOVERNMENT SITTING THEREIN, AND EXPRESSLY WANES ANY OBJECTIONS AS TO VENUE IN ANY OF SUCH COURTS. The term “Bank” as used in this Note shall include Bank’s successors, indorsees and assigns. 

  

	8.	The occurrence of any one or more of the following events shall constitute an Event of Default under this Note: 

 (a) default in the payment of any installment of the principal of, or fees or interest on, this Note after the date when the same shall
become due and payable, whether at the due date thereof or at a date fixed for prepayment or by acceleration or otherwise, and the continuance of such default for a period of ten (10) days after such due date; 
  

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 (b) default, after the expiration of any applicable grace periods, in the due observance
or performance of any covenant, promise or provision contained in any other agreement of the Borrower in favor of Bank, including, without limitation, any other promissory note, loan agreement, mortgage deed, or security document; 
 (c) any Event of Default shall occur and be continuing as defined under any of the Security Documents, or as defined under the Loan
Agreement. 
  

	9.	Whenever an Event of Default is in existence under this Note, the entire balance outstanding hereunder and all other liabilities, indebtedness and obligations of Borrower to Bank
(however acquired or evidenced) shall, at the option of Bank, become forthwith due and payable, without presentment, notice, protest or demand of any kind (all of which are expressly waived by Borrower) for the payment of the whole or any part
hereof. Whenever an Event of Default is in existence under this Note (whether or not Bank has accelerated payment of this Note), or after maturity or after judgment has been rendered on this Note, to the extent permitted by law, the rate of interest
on the unpaid principal shall, at the option of Bank, be increased to four percent (4%) over the rate which would otherwise be applicable (the “Default Rate”). Failure at any time to exercise either of the aforesaid options or any
other rights of Bank hereunder shall not constitute a waiver thereof, nor shall it be a bar to exercise of either of the aforesaid options or rights at a later date. 

  

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	10.	In the event any one or more of the provisions of this Note shall for any reason be held to be invalid, illegal or unenforceable, in whole or in part or in any respect or in the
event that any one or more of the provisions of this Note operate or would prospectively operate to invalidate this Note, then and in either of those events, such provision or provisions only shall be deemed null and void and shall not affect any
other provision of this Note and the remaining provisions of this Note shall remain operative and in full force and effect and shall in no way be affected, prejudiced or disturbed thereby. 

  

	11.	BORROWER AND BANK (BY ACCEPTANCE OF THIS NOTE) MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED HEREON,
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE OR ANY OTHER LOAN DOCUMENTS CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY,
INCLUDING, WITHOUT LIMITATION, ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF BANK RELATING TO THE ADMINISTRATION OF THE LOAN OR ENFORCEMENT OF THE LOAN DOCUMENTS, AND AGREE THAT NEITHER PARTY WILL SEEK TO CONSOLIDATE ANY SUCH
ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. BORROWER CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF BANK HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT BANK WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER. THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR BANK TO ACCEPT THIS NOTE AND MAKE THE LOAN. 

  

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	12.	Bank may at any time pledge or assign all or any portion of its rights under this Note to any of the twelve (12) Federal Reserve Banks organized under Section 4 of the
Federal Reserve Act, 12 U.S .C. Section 341. No such pledge or assignment or enforcement thereof shall release Bank from its obligations under any of the loan documents evidencing or securing this Note. 

  

	13.	Bank shall have the unrestricted right at any time and from time to time, and without the consent of or notice to Borrower, to grant to one or more banks or other financial
institutions (each a “Participant”) participating interests in the obligations evidenced hereby. In the event of any such grant by Bank of a participating interest to a Participant, whether or not upon notice to Borrower, Bank shall remain
responsible for the performance of its obligations hereunder and Borrower shall continue to deal solely and directly with Bank in connection with Bank’s rights and obligations hereunder. Bank may furnish any information concerning Borrower in
its possession from time to time to prospective Participants, provided that Bank shall require any such prospective Participant to agree in writing to maintain the confidentiality of such information. 

  

	14.	 Borrower shall pay on demand all expenses of Bank in connection with the preparation, administration, default, collection, waiver or amendment of loan terms, or in
connection with Bank’s exercise, preservation or enforcement of any of its rights, remedies or options hereunder, including, without limitation, fees of outside legal counsel or the allocated costs of in-house legal counsel, accounting,
consulting, brokerage or other similar professional fees or expenses, and any fees or expenses associated with travel or other costs relating to any appraisals or examinations conducted in connection with the loan or any collateral 

  

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therefor, and the amount of all such expenses shall, until paid, bear interest at the rate applicable to principal hereunder (including any default rate) and
be an obligation secured by any collateral. 

  

	15.	Upon receipt of an affidavit of an officer of Bank as to the loss, theft, destruction or mutilation of the Note or any other security document which is not of public record, and, in
the case of any such loss, theft, destruction or mutilation, upon cancellation of such Note or other security document, Borrower will issue, in lieu thereof, a replacement Note or other security document in the same principal amount thereof and
otherwise of like tenor. 

  

	16.	No portion of the proceeds of the loan evidenced by this Note shall be used, in whole or in part, for the purpose of purchasing or carrying any “margin stock” as such term
is defined in Regulation U of the Board of Governors of the Federal Reserve System. 

  

	17.	 Bank shall have the unrestricted right at any time or from time to time, and without Borrower’s consent, to assign all or any portion of its rights and
obligations hereunder to one or more banks or other financial institutions (each, an “Assignee”), and Borrower, upon its or its counsel’s satisfactory review, agrees that it shall execute, or cause to be executed, such documents,
including, without limitation, amendments to this Note and to any other documents, instruments and agreements executed in connection herewith as Bank shall deem necessary to effect the foregoing Bank agrees to reimburse Borrower for its reasonable
legal expenses incurred in connection with the execution of any such documentation. In addition, at the request of Bank and any such Assignee, Borrower shall issue one or more new promissory notes, as applicable, to any such Assignee and, if Bank
has 

  

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retained any of its rights and obligations hereunder following such assignment, to Bank, which new promissory notes shall be issued in replacement of, but
not in discharge of, the liability evidenced by this Note and held by Bank prior to such assignment and shall reflect the amount of the respective loans held by such Assignee and Bank after giving effect to such assignment, provided, however, that
in no event shall the amount due under the subsequent notes exceed the amount due under this Note. Upon the execution and delivery of appropriate assignment documentation, amendments and any other documentation required by Bank in connection with
such assignment, and the payment by Assignee of the purchase price agreed to by Bank, and such Assignee, such Assignee shall have all of the rights and obligations of Bank hereunder (and under any and all other guaranties, documents, instruments and
agreements executed in connection herewith) to the extent that such rights and obligations have been assigned by Bank pursuant to the assignment documentation between Bank and such Assignee. Bank may furnish any information concerning Borrower in
its possession from time to time to prospective Assignees, provided that Bank shall require any such prospective Assignee to agree in writing to maintain the confidentiality of such information. 

  

	18.	This Note is intended by the parties as the final, complete and exclusive statement of the transactions evidenced by this Note. All prior or contemporaneous promises, agreements and
understandings, whether oral or written, are deemed to be superseded by this Note, and no party is relying on any promise, agreement or understanding not set forth in this Note. This Note may not be amended or modified except by a written instrument
describing such amendment or modification executed by Borrower and Bank. 

  

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	 	19.	By mutual agreement of Borrower and Bank, Bank may effect payment of any sums due hereunder by means of debiting any of Borrower’s demand deposit accounts with Bank.

 SECURITY: 
 Borrower
hereby grants to Bank, a continuing lien, security interest and right of setoff as security for all liabilities and obligations to Bank, whether now existing or hereafter arising, upon and against all deposits, credits, collateral and property, now
or hereafter in the possession, custody, safekeeping or control of Bank or any entity under the control of bank of America Corporation and its successors and assigns, or in transit to any of them. At any time, without demand or notice (any such
notice being expressly waived by Borrower), Bank may set off the same or any part thereof and apply the same to any liability or obligation of Borrower even though unmatured and regardless of the adequacy of any other collateral securing this Note.
ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THIS NOTE, PRIOR TO EXERCISING ITS RIGHTS OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE
HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED. 
  

 - 22 - 

 This Note is also secured by and entitled to the benefits of a Guaranty, a Security Agreement, and a Debenture, all dated
as of even date (collectively herein the “Security Documents”). 
  

							
	WITNESS:	 	 	 	BORROWER:
			
		 		 	Summer Infant, Inc.
				
	 /s/ Steven Rosenbaum
	 		 	By:	 	 /s/ Mark D. Gorton

		 		 	Name:	 	Mark D. Gorton
		 		 	Title:	 	VP Finance
			
		 		 	Summer Infant Europe Limited
				
	 /s/ Steven Rosenbaum
	 		 	By:	 	 /s/ Mark D. Gorton

		 		 	Name:	 	Mark D. Gorton
		 		 	Title:	 	Financing Officer
			
		 		 	Summer Infant Asia Limited
				
	 /s/ Steven Rosenbaum
	 		 	By:	 	 /s/ Mark D. Gorton

		 		 	Name:	 	Mark D. Gorton
		 		 	Title:	 	Financing Officer
			
		 		 	 6 Blackstone Valley Place, Suite 206A
 Lincoln, RI -02865

  

 - 23 -Security Agreement

 EXHIBIT 10.19 
 SECURITY AGREEMENT 
 THIS AGREEMENT is dated July 19, 2005 and is entered into by
and between Summer Infant, Inc., a Rhode Island corporation, with its principal place of business located at 6 Blackstone Valley Place, Lincoln, Rhode Island (the “Debtor”) and Bank of America, N.A., a national banking
association with a place of business located at 111 Westminster Street, Providence, Rhode Island (the “Secured Party”). 
 NOW
THEREFORE, in consideration of the provisions herein contained, and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows: 
 I. DEFINITIONS 
 1.1.
“Accounts” shall mean “accounts” within the meaning of the Code and, to the extent not otherwise included therein, all Contract Rights, accounts receivable, instruments, documents and chattel paper; any other
obligations or indebtedness owed to the Debtor from whatever source arising; all rights of Debtor to receive any payments in money or kind; all guarantees of Accounts and security therefor; all cash or non-cash Proceeds of all of the foregoing; all
of the right, title and interest of Debtor in and with respect to the goods, services or other property which gave rise to or which secure any of the accounts and insurance policies and proceeds relating thereto, and all of the rights of the Debtor
as an unpaid seller of goods or services, including, without limitation, the rights of stoppage in transit, replevin, reclamation and resale; and all of the foregoing, whether now existing or hereafter created or acquired. 
 1.2. “Chattel Paper” means a record or records that evidence both a monetary obligation and a security interest in specific
goods, a security interest in specific goods and software used in the goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods, or a lease of specific goods and license of software used in the
goods, and all other items not specifically set forth herein but which constitute “chattel paper” under the UCC; and all cash and non-cash proceeds of the foregoing, including insurance proceeds. In this paragraph, “monetary
obligation” means a monetary obligation secured by the goods or owed under a lease of the goods and includes a monetary obligation with respect to software used in the goods. If a transaction is evidenced by records that include an instrument
or series of instruments, the group of records taken together constitutes “chattel paper”. 
 1.3. “Commercial Tort
Claims” means a claim arising in tort with respect to which: 
 (a) the claimant is an organization; or 
 (b) the claimant is an individual and the claim: 
  

	 	(i)	arose in the course of the claimants business or profession; and 

  

	 	(ii)	does not include damages arising out of personal injury to or the death of an individual, 

 and all other items not specifically set forth herein but which constitute “commercial tort claims” under the
UCC; and all cash and non-cash proceeds of the foregoing, including insurance proceeds. 
 1.4. “Code” or
“UCC” shall mean the Uniform Commercial Code as the same may be in effect from time to time in the State of Rhode Island. 
 1.5. “Collateral” shall have the meaning assigned to it in Section 2.1 of this Agreement. 
 1.6.
“Contract Rights”, to the extent not included in the definition of Accounts in Section 1.1, shall mean all rights to payment or performance under a Contract not yet earned by performance and not evidenced by an instrument
or chattel paper. 
 1.7. “Contract” or “Contracts” shall mean all contracts, agreements and
other undertakings of any nature whatsoever pursuant to which the Debtor has entered into a sale or agreement to sell or provide goods or services now or in the future. 
 1.8. “Debtor’s Address” shall mean 6 Blackstone Valley Place, Lincoln, Rhode Island. 
 1.9. “Deposit Accounts” means a demand, time, savings, passbook, or similar account maintained with a bank or other financial institution, and all other items not specifically set forth herein but which constitute
“deposit accounts” under the UCC; and all cash and non-cash proceeds of the foregoing, including insurance proceeds. 
 1.10.
“Documents”, shall mean “documents” within the meaning of the Code. 
 1.11. “Event of
Default” shall mean an Event of Default set forth in Section 7.1 hereof. 
 1.12. “Equipment” shall
include “equipment” within the meaning of the Code and, to the extent not otherwise included therein, all machinery, equipment, furniture, parts, tools and dies, of every kind and description, of the Debtor (including automotive
equipment), now owned or hereafter acquired by the Debtor, and used or acquired for use in the business of the Debtor, together with all accessions thereto and all substitutions and replacements thereof and parts therefor; and all cash or non-cash
Proceeds of the foregoing. 
 1.13. “Fixtures” shall mean “fixtures” within the meaning of the Code and, to
the extent not otherwise included therein, all goods which are so related to particular real estate that an interest in them arises under real estate law and all accessions thereto, replacements thereof and substitutions therefor, including, but not
limited to, plumbing, heating and lighting apparatus, mantels, floor coverings, furniture, furnishings, draperies, screens, storm windows and doors, awnings, shrubbery, plants, boilers, tanks, machinery, stoves, gas and electric ranges, wall
cabinets, appliances, furnaces, dynamos, motors, elevators and elevator machinery, radiators, blinds and all laundry, refrigerating, gas, electric, ventilating, air-refrigerating, air-conditioning, incinerating and sprinkling and other fire
prevention or extinguishing equipment of whatsoever kind and nature and any replacements, accessions and additions thereto, Proceeds thereof and substitutions therefor. 
  

 2 

 1.14. “General Intangibles” shall mean “general intangibles” within the
meaning of the Code to the extent they arise from the sale of goods or services or are used in connection with the production of Inventory, all tax refunds and other claims of the Debtor against any Governmental Authority, and all choses in action,
insurance proceeds, goodwill, patents, copyrights, trademarks, tradenames, customer lists, formulae, trade secrets, licenses, designs, computer software, research and literary rights now owned or hereafter acquired. 
 1.15. “Governmental Authority” shall mean any instrumentality exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government, and any corporation or other entity owned or controlled (through stock or capital ownership or otherwise) by any of the foregoing. 
 1.16. “Inventory” shall mean “inventory” within the meaning of the Code, and to the extent not otherwise included
therein, all goods, merchandise and other personal property now owned or hereafter acquired by the Debtor which are held for sale or lease, or are furnished or to be furnished under any contract of service or are raw materials, work-in-process,
supplies or materials used or consumed in the Debtor’s business, and all products thereof, and all substitutions, replacements, additions or accessions therefor and thereto; and any cash or non-cash Proceeds of all of the foregoing, including
insurance proceeds. 
 1.17. “Investment Property” means a security, whether certificated or uncertificated, security
entitlement, securities account, commodity contract, or commodity account, and all other items not specifically set forth herein but which constitute “investment property” under the UCC; and all cash and non-cash proceeds of the foregoing,
including insurance proceeds. 
 1.18. “Lien” shall mean any mortgage, pledge, hypothecation, assignment, security
interest, lien, charge or encumbrance, or preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation, any conditional sale or other title retention agreement, any
financing lease having substantially the same economic effect as any of the foregoing, and the filing of, or agreement to give, any financing statement under the Uniform Commercial Code or comparable law of any jurisdiction). 
 1.19. “Loan Agreement” shall mean that certain Revolving Credit Agreement of even date by and between the Debtor, Summer Infant
Europe Limited, Summer Infant Asia Limited, and the Secured Party. 
 1.20. “Obligations” means all indebtedness,
obligations and liabilities of the Debtor to the Secured Party of every kind and description, direct or indirect, secured or unsecured, joint or several, absolute or contingent, due or to become due, whether for payment or performance, now existing
or hereafter arising, regardless of how the same arise or by what instrument, agreement or book account they may be evidenced, or whether evidenced by any instrument, agreement or book account, including, without limitation, all loans (including any
loan by renewal or extension), all indebtedness, all undertakings to take or refrain from taking any action, and all interest, taxes, fees, charges, expenses and attorneys’ fees chargeable to the Debtor or incurred by the Secured Party 

  

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under this Agreement, or any other document or instrument delivered in connection herewith, and further including, without limitation, all obligations of the
Debtor to the Secured Party pursuant to the Promissory Note and the Loan Agreement. 
 1.21. “Permitted Liens” means:

 (a) Liens securing the payment of taxes, either not yet due or the validity of which is being contested in good faith by appropriate
proceedings, and as to which there shall have been set aside on the Debtor’s books adequate reserves; 
 (b) Liens existing on the date
hereof which are described in Exhibit A attached hereto and incorporated herein by reference; 
 (c) Liens permitted by the Loan
Agreement; and 
 (d) Liens securing the Promissory Note and the Loan Agreement. 
 1.22. “Proceeds” shall mean “proceeds” as defined in the Code and, to the extent not otherwise included therein,
(a) any and all proceeds of any insurance, indemnity, warranty, guaranty, or other agreement, instrument or undertaking similar to any of the foregoing, payable to the Debtor from time to time with respect to any of the Collateral, (b) any
and all payments (in any form whatsoever) made or due and payable to the Debtor from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral, (c) any and all other
amounts from time to time paid or payable under or in connection with any of the Collateral, and (d) any products or rents of any of the Collateral. 
 1.23. “Promissory Note” shall mean that certain Secured Promissory Note of the Debtor, Summer Infant Europe Limited, Summer Infant Asia Limited payable to the order of the Secured Party, dated
as of even date and in the principal amount of Seven Million Five Hundred Thousand Dollars ($7,500,000). 
 1.24. “Secured
Party’s Address” shall mean 111 Westminster Street, Providence, Rhode Island, 02903. 
 II. GRANT OF SECURITY INTEREST

 2.1. Collateral and Grant of Security Interest. As collateral security for the payment and performance of all of the
Obligations, the Debtor hereby grants, assigns, conveys, pledges and transfers to the Secured Party, a continuing security interest in all tangible and intangible personal property of the Debtor, including, but not limited to, the following assets
and properties of the Debtor, any and all substitutions therefor and replacements thereof, and any and all additions and accessions thereto whether now owned or hereafter acquired or in which the Debtor may now have or hereafter acquire an interest,
wherever located (all of which are hereinafter collectively referred to as the “Collateral”): 
 (a) All Accounts and General
Intangibles now existing or arising in the future, whether in the ordinary course of the Debtor’s business, in respect of the sale of Inventory, or otherwise (including without limitation, (i) all monies due and to become due under any
Contract or Account, (ii) any damages arising out of or for breach or default in respect of any such Contract or Account, (iii) all other amounts from time to time paid or payable under or in connection with any such Contract or Account
and (iv) the right of the Debtor to terminate any Contract or to perform and to exercise all remedies thereunder); 
  

 4 

 (b) All Inventory; 
 (c) All Equipment and Fixtures; 
 (d) All Investment Property, Deposit Accounts, Chattel Paper, and
Commercial Tort Claims; 
 (e) All ledger sheets, files, records, documents and instruments (including, without limitation, computer programs,
tapes and related data processing software) evidencing an interest in or relating to the foregoing Collateral; 
 (f) All instruments,
Documents, securities, cash and property, owned by the Debtor or in which Debtor has an interest, which now or hereafter at any time are in the possession and control of the Secured Party or in transit by mail or carrier to or from the Secured Party
or in the possession of any third party acting in behalf of the Secured Party, without regard to whether the Secured Party received the same in pledge, for safekeeping, as agent for collection or transmission or otherwise or whether the Secured
Party had conditionally released the same; and 
 (g) To the extent not otherwise included, all Proceeds of any and all of the foregoing.

 2.2. Possession of the Collateral. Until the occurrence of an Event of Default, the Debtor may have possession of the
Collateral and use it in any lawful manner not inconsistent with this Agreement or with the terms or conditions of any policy of insurance thereon. 
 III. REPRESENTATIONS AND WARRANTIES 
 The Debtor represents and warrants to the Secured Party, and such
representations and warranties shall be continuing representations and warranties so long as any Obligations shall remain outstanding, as follows: 
 3.1. Title to Collateral. Except for the security interest granted hereby and the Permitted Liens, the Debtor has or in the case of after-acquired Collateral will have, good and marketable title to the Collateral free from any
adverse lien, security interest or encumbrance; and the Debtor will defend the Collateral against all claims and demands of all persons claiming the same or any interest therein. 
  

 5 

 3.2. Accuracy of Statements. All warranties, representations, statements and other
information furnished to the Secured Party by or in behalf of the Debtor are or will be when the same are made or furnished, accurate and complete in all material respects. 
 3.3. Location of Collateral. Except as affected by the sale or consumption of Inventory in the ordinary course of business, the Collateral
is or will be kept at the Debtor’s Address and at those locations described on Schedule 3.3 attached hereto, and the Debtor will give the Secured Party ten (10) days’ prior written notice of any change in, addition to or
discontinuance of the location where the Collateral is kept, and, unless otherwise provided herein, the Debtor will not remove any Collateral from the Debtor’s Address without the prior written consent of the Secured Party. 
 3.4. Landlord Waivers/Warehouseman Letters. If the Collateral or any part thereof is located at real property where the Debtor does not own
the fee interest therein, the Debtor will, upon demand of the Secured Party, furnish to the Secured Party a disclaimer or disclaimers satisfactory to the Secured Party and signed by all persons having an interest in such real estate. 
 3.5. Financing Statements. Except for the Permitted Liens, no financing statement covering any of the Collateral or any proceeds thereof is
on file in any public office; and, at the request of the Secured Party, the Debtor will join with the Secured Party in filing one or more financing statements pursuant to the Code in form satisfactory to the Secured Party and will pay the cost of
filing the same in all public offices wherever filing is deemed by the Secured Party to be necessary or desirable. 
 3.6.
Tradenames. The Debtor (a) utilizes no tradenames in the conduct of its business, (b) has not changed its name since the date of acquisition of the Debtor by its current ownership, been the surviving entity in a merger or
acquired any businesses, and (c) has not changed the location of its chief place of business or chief executive office or the location of its records with respect to Accounts or the location of any Inventory. 
 3.7. Place of Business. The address of the chief executive office of the Debtor is 6 Blackstone Valley Place, Lincoln, Rhode Island. The
address of the chief place of business of the Debtor is 6 Blackstone Valley Place, Lincoln, Rhode Island. 
 3.8. Tax Returns.
The Debtor has filed or has applied for extensions to file all federal, state and local tax returns and other reports it is required to file and has paid or made adequate provision for payment of all such taxes, assessments and other governmental
charges. 
 3.9. Legally Enforceable Agreement. This Agreement and any document or instrument delivered in connection herewith
and the transactions contemplated hereby or thereby have been duly authorized, executed and delivered; and this Agreement and such other documents and instruments constitute valid and legally binding obligations of the Debtor and are enforceable
against the Debtor in accordance with their respective terms, except to the extent that such enforcement may be limited by applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and except as certain remedies
thereunder may be subject to equitable principles. 
  

 6 

 IV. GENERAL COVENANTS 
 The Debtor hereby covenants and agrees that so long as any of the Obligations remain outstanding: 
 4.1. Sale of Collateral. Except as provided in Section 5.1.1 hereof, the Debtor will not sell or offer to sell or otherwise transfer
the Collateral or any interest therein without the prior written consent of the Secured Party. 
 4.2. Insurance. The Debtor
shall have and maintain insurance at all times with respect to all Collateral against risks of fire and such other risks customarily insured against by companies engaged in similar businesses to that of the Debtor. Such insurance shall be payable to
the Secured Party as loss payee as its interest may appear. The Debtor shall furnish to the Secured Party certificates or other evidence satisfactory to the Secured Party of compliance with these insurance requirements. If any proceeds under any
insurance policies are paid to the Secured Party while any Obligations remain outstanding, the Secured Party at its election may apply such proceeds to the payment of such Obligations or release such proceeds to the Debtor for the purpose of
replacing the lost, damaged or destroyed Collateral with respect to which such proceeds were paid. The Debtor will maintain such insurance with financially sound and reputable companies acceptable to the Secured Party (i.e. insurance companies
authorized to write insurance in the State of Rhode Island and which have at all times a general policyholder’s rating of A or A+ in Best’s latest rating guide). All of said policies of insurance or certificates thereof, including all
endorsements thereof and those required hereunder, shall be deposited with the Secured Party; and such policies shall contain provisions that no such insurance may be canceled or decreased without twenty (20) days’ prior written notice to
the Secured Party. 
 4.3. Taxes and Assessments. The Debtor will pay promptly when due all taxes, assessments and governmental
charges or levies imposed upon the Collateral or in respect of its income or profits therefrom, as well as all claims of any kind (including claims for labor, materials and supplies), except that no such charge need be paid if: 
 (a) the validity thereof is being contested in good faith by appropriate proceedings; 
 (b) such proceedings do not permit any sale, forfeiture or loss of any of the Collateral or any interest therein; and 
 (c) such charge is adequately reserved against in accordance with generally accepted accounting principles consistently applied.

 4.4. Defense of Collateral. The Debtor will not create, permit or suffer to exist, and will defend the Collateral against and
take such other action as is necessary to remove, any Lien, claim or right, on or to the Collateral, other than the Lien created hereunder and the Permitted Liens, and will defend the right, title and interest of the Secured Party in and to any of
the Collateral against the Liens, claims and demands of all other parties. 
 4.5. Access. The Secured Party shall at all times
have complete access during normal business hours upon reasonable prior notice to all of the books, correspondence and records of the Debtor relating to the Collateral; and, the Secured Party or its 

  

 7 

 
representatives may examine the same, take extracts therefrom and make photocopies thereof, and the Debtor agrees to render to the Secured Party, at the
Debtor’s cost and expense, such clerical and other assistance as may be reasonably requested with regard thereto as set forth in the Loan Agreement. The Secured Party and its representatives shall at all times upon reasonable prior notice also
have the right to enter into and upon any premises where any of the Inventory and Equipment is located for the purpose of inspecting the same, observing its use, or otherwise protecting its interest therein. 
 4.6. Notice of Loss or Default. The Debtor will immediately notify the Secured Party of any event causing a substantial loss or diminution
in the value of all or any material part of the Collateral not covered by insurance and the amount or an estimate of the amount of such loss or diminution. The Debtor shall promptly notify the Secured Party of any condition or event which
constitutes, or would constitute with the passage of time or giving of notice or both, an Event of Default under this Agreement, and promptly inform the Secured Party of any events or changes in the financial condition of the Debtor occurring since
the date of the last financial statement of the Debtor delivered to the Secured Party, which individually or cumulatively when viewed in light of prior financial statements, may result in a material adverse change in the financial condition of the
Debtor. 
 4.7. Additional Instruments. At any time and from time to time upon request of the Secured Party, the Debtor shall
execute and deliver to the Secured Party, in form and substance satisfactory to the Secured Party, such documents and chattel paper as the Secured Party shall deem necessary or desirable to perfect or maintain perfected the security interest of the
Secured Party in the Collateral or which may be necessary to comply with the provisions of the law of the State of Rhode Island or the law of any other jurisdiction in which the Debtor may then be conducting business or in which any of the
Collateral may be located. 
 V. SPECIFIC REPRESENTATIONS, WARRANTIES AND 
 COVENANTS WITH RESPECT TO THE COLLATERAL 
 With respect to the Collateral, the Debtor hereby represents, warrants and covenants with the Secured Party, as follows: 
 5.1. Inventory. As to Inventory: 
 5.1.1. The Debtor shall not sell, lease or
otherwise transfer any interest in the Inventory except that the Debtor may, until an Event of Default occurs, hold, process, sell, use or consume the Inventory in the ordinary course of its business, excluding, however, any sale or transfer made in
partial or total satisfaction of a debt. 
 5.1.2. The Debtor shall keep monthly stock, cost and sales records of the
Inventory, accurately itemizing and describing the types and quantities of the Inventory and the cost and selling price thereof; and all books, records and documents relating to the Inventory are and will be genuine, complete and correct.

  

 8 

 5.1.3. None of the Inventory is or at any time or times hereafter will be, stored with a
bailee (other than at Debtor’s Address) or consignee without the prior written consent of the Secured Party. 
 5.1.4.
The Debtor shall, at the Secured Party’s request, deliver to the Secured Party any and all evidence of ownership of, certificates of title to or other documents evidencing any interest in, any and all of the Inventory. 
 5.2. Equipment. As to Equipment: 
 5.2.1. The Debtor shall keep and maintain all Equipment in good operating condition and repair, make all necessary repairs thereto and replacement of parts thereof so that the value and operating efficiency thereof
shall at all times be maintained and preserved. 
 5.2.2. The Debtor shall not, without the prior written consent of the
Secured Party, sell, offer to sell, lease or in any other manner dispose of any of the Equipment except in the ordinary course of business. 
 5.3. Accounts. As to Accounts: 
 5.3.1. Accounts constituting a portion of the Collateral and all
papers and Documents relating thereto are genuine and in all respects what they purport to be; the same are valid and subsisting and arise out of bona fide sales of goods, or out of or for services heretofore rendered by the Debtor to the
account debtors and each of them; and the amount of the Accounts represented by the Debtor’s records as owing by each such account debtor, except for normal cash discounts, is not disputed, and except for such normal cash discounts is not
subject to any set-offs, credits, deductions or counter charges except charge backs in the ordinary course of the Debtor’s business. Similar representations and warranties will be assumed to exist as to Accounts hereafter arising except as to
set-offs, credits, deductions, counter charges and disputes as to which the Debtor gives prompt written notice to the Secured Party. 
 5.3.2. Upon the occurrence of an Event of Default, the Secured Party shall have the right in its own name or in the name of the Debtor to demand, collect, receive, sue for, compromise and give acquittance for, any and all amounts due or to
become due on the Accounts constituting a portion of the Collateral and to endorse the name of the Debtor on all commercial paper given in payment or part payment thereof, and in its discretion, to file any claim or take any other action which the
Secured Party may deem necessary or appropriate to protect and preserve and realize upon its security interest in the Accounts and the Proceeds thereof. 
 5.3.3. The Secured Party may require the Debtor to mark its records to reflect the assignment to the Secured Party of the Accounts constituting a part of the Collateral. 
 5.3.4. Upon the occurrence of an Event of Default, the Secured Party shall have the right to notify any and all account debtors to make
payment thereof directly to the Secured Party; but to the extent the Secured Party does not so elect, the Debtor shall continue to collect the Accounts. Upon the occurrence of an Event of Default, all proceeds of the Accounts, in whatsoever 

  

 9 

 
form received by the Debtor, shall be immediately delivered by the Debtor to the Secured Party in the form as received by the Debtor, and until so delivered,
the Debtor agrees that all sums so collected shall be the property of the Secured Party, held in trust by the Debtor for the Secured Party, and not commingled with the Debtor’s other funds; provided, however, that the Secured Party in its
discretion to such extent and for such periods, if any, as it sees fit, may authorize the Debtor to use or retain some or all of the sums so collected from such Accounts for other purposes. Proceeds transmitted to the Secured Party may be handled
and administered by the Secured Party in and through a remittance account or similar mechanism; but the Debtor acknowledges that the maintenance of such an account is solely for the convenience of the Secured Party in facilitating its own
operations, and that the Debtor has not and shall not have any right, title or interest in said account or in the amounts at any time appearing to the credit thereof. Except to the extent the Secured Party may from time to time in its discretion
release proceeds to the Debtor for use in the business, all proceeds received by the Secured Party shall be applied on the due and payable indebtedness secured hereby, but the Secured Party need not apply nor give credit for any item included in
such proceeds until such Secured Party has received final payment thereof at its office in cash or solvent credit accepted by the Secured Party as such. 
 5.3.5. The Debtor shall provide the Secured Party, at its request, from time to time with (a) confirmatory assignment schedules, (b) copies of all invoices relating to the Accounts, (c) evidence of
shipment or delivery of the Inventory, and (d) such further information and/or schedules as the Secured Party may reasonably require, all in a form satisfactory to the Secured Party. 
 5.3.6. The Secured Party shall have the right at any time or times, in the Debtor’s name, in the Secured Party’s name, or in the
name of a nominee of the Secured Party, to verify the validity, amount or any other matter relating to any Account, by mail, telephone, facsimile transmission, or otherwise. The Secured Party shall have the right to make test verifications of the
Accounts in any manner and through any medium that it considers advisable, and the Debtor agrees to furnish all such assistance and information as the Secured Party may reasonably require in connection therewith and the Debtor is reasonably able to
provide. 
 5.4. Chattel Paper. Debtor shall not create any Chattel Paper without placing a legend on the Chattel Paper
acceptable to Secured Party indicating that Secured Party has a security interest in the Chattel Paper. 
 5.5. Control
Agreements. Debtor will cooperate with Secured Party in obtaining a control agreement(s) in form and substance satisfactory to Secured Party with respect to any Collateral consisting of (i) Deposit Accounts; (ii) Investment
Property; and (iii) Chattel Paper. 
 5.6. Investment Property. As to Investment Property: 
 5.6.1. Until the occurrence of an Event of Default, Debtor shall retain the right to vote or otherwise exercise any rights relating to any
of Debtor’s Investment Property in a manner not inconsistent with the terms of this Agreement. If Debtor, as 

  

 10 

 
registered holder of such Investment Property, receives (i) any dividend or other distribution in cash or other property in connection with the
liquidation or dissolution of the issuer of such Investment Property, or in connection with the redemption or payment of such Investment Property, or (ii) any stock certificate, option or right, or other distribution, whether as an addition to,
in substitution of, or in exchange for, such Investment Property, or otherwise, Debtor agrees to accept the same in trust for Secured Party and to deliver the same forthwith to Secured Party or its designee, in the exact form received, with such
Debtor’s endorsement or reassignment when necessary, to be held by Secured Party as Collateral. 
 5.6.2. Upon request of
Secured Party, Debtor shall (i) deliver all of Debtor’s Investment Property represented by certificates, including without limitation all stock of its subsidiaries, if any, to Secured Party to hold pursuant to the terms of this Agreement,
and (ii) register in the name of Secured Party or its designee any uncertificated Investment Property or Secured Party’s security interest therein on the books maintained by or on behalf of the issuer thereof or the depository therefor.

 VI. SECURED PARTY’S APPOINTMENT AS 
 ATTORNEY-IN-FACT 
 6.1. Appointment and Powers. Upon and during the continuance
of an Event of Default, the Debtor hereby irrevocably constitutes and appoints the Secured Party and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in
the name and stead of the Debtor or in its own name, from time to time in the Secured Party’s discretion, for the purpose of carrying out the terms of this Agreement, to take any and all appropriate action and to execute any and all documents
and instruments which may be necessary or desirable to accomplish the purposes of this Agreement and, without limiting the generality of the foregoing, hereby gives the Secured Party the power and right, in behalf of the Debtor, after an Event of
Default and notice to the Debtor, to do the following: 
 (a) To communicate with any party to any Contract or any account
debtor with regard to any aspect of any Contract or Account and to ask, demand, collect, receive or give acquittances and receipt for any and all monies due or to become due under any Account or Contract and, in the name of the Debtor or its own
name or otherwise, to take possession of and endorse and collect any checks, drafts, notes, acceptances or other instruments for the payment of monies due under any Account or Contract and to file any claim or to take any other action or proceeding
in any court of law or equity or otherwise deemed appropriate by the Secured Party for the purpose of collecting any and all such monies due under any Account or Contract whenever payable; 
 (b) To pay or discharge taxes, Liens, security interests or other encumbrances levied or placed on or threatened against the Collateral;

 (c) To effect any required repairs to the Collateral; 
  

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 (d) To obtain any insurance required pursuant to this Agreement and to pay all or any
part of the premiums therefor; 
 (e) To receive payment of and receipt for any and all monies, claims and other amounts due
or to become due at any time in respect of or arising out of any Collateral; 
 (f) To sign and endorse any invoices, freight
or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications and notices in connection with Accounts and other documents relating to the Collateral; 
 (g) To commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the
Collateral or any part thereof and to enforce any other right in respect of any Collateral; 
 (h) To defend any suit, action
or proceeding brought against the Debtor with respect to any Collateral; 
 (i) To settle, compromise or adjust any suit,
action or proceeding described above and, in connection therewith, to give such discharges or releases as the Secured Party may deem appropriate; 
 (j) Generally, to sell, transfer, pledge, make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though the Secured Party was the absolute owner thereof for all
purposes including, without limitation, the execution of assignments, bills of sale or other instruments of conveyance or transfer with respect to the Collateral; and 
 (k) To do, at the Secured Party’s option and at the Debtor’s expense, at any time or from time to time, all acts or things which
the Secured Party deems necessary to protect, preserve or realize upon the Collateral and the security interest granted by this Agreement, all as fully and effectively as the Debtor might do. 
 6.2. Irrevocable Power of Attorney. The power of attorney granted under Section 6.1 hereof is a power coupled with an interest and
shall be irrevocable until all Obligations are paid and performed in full. 
 6.3. The Secured Party’s Lack of Duty. The
Debtor agrees that the powers conferred on the Secured Party hereunder are solely to protect the Secured Party’s interests in the Collateral and shall not impose any duty upon it to exercise any such powers. 
 VII. EVENTS OF DEFAULT AND ACCELERATION 
 7.1. Events of Default. The occurrence of any Event of Default, as defined in the Loan Agreement or the Promissory Note, shall constitute an Event of Default hereunder. 
 7.2. Acceleration. If any Event of Default shall occur, then or at any time thereafter while such Event of Default shall continue, the
Secured Party may declare all Obligations to be immediately due and payable, without notice, protest, presentment or demand, all of which are hereby expressly waived by the Debtor. 
  

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 VIII. REMEDIES 
 8.1. In General. If an Event of Default shall occur and be continuing: 
 8.1.1. All payments received by the Debtor under or in connection with any of the Collateral shall be held by the Debtor in trust for the
Secured Party, shall be segregated from other funds of the Debtor, and shall forthwith, upon receipt by the Debtor, be turned over to the Secured Party in the same form received by the Debtor (duly endorsed by the Debtor to the Secured Party, if
required). 
 8.1.2. Any and all such payments so received by the Secured Party (whether from the Debtor or otherwise) may, in
the sole discretion of the Secured Party, be held by the Secured Party as collateral security for, and/or then or at any time thereafter, applied in whole or in part by the Secured Party against all or any part of the Obligations, in such order as
the Secured Party shall elect. Any balance of such payments held by the Secured Party and remaining after payment in full of all the Obligations shall be paid over to the Debtor or to whomsoever may be lawfully entitled to receive the same.

 8.2. The Secured Party’s Rights and Remedies Upon Acceleration. The Debtor agrees that if an Event of Default shall
occur and be continuing: 
 8.2.1. The Secured Party may exercise, in addition to all other rights and remedies granted to it
in this Agreement and in any other instrument or agreement securing, evidencing or relating to the Obligations, all rights and remedies of a Secured Party under the Code or under the applicable law of any other jurisdiction, including, without
limitation, any jurisdiction where the Collateral may be located. 
 8.2.2. Without limiting the generality of the foregoing,
the Secured Party, without demand of performance or other demand, advertisement or notice of any kind (except the notice specified below of time and place of public or private sale) to or upon the Debtor or any other party (all and each of which
demands, advertisements and/or notices are hereby expressly waived), may forthwith collect, receive, appropriate and realize upon the Collateral or any part thereof and/or may forthwith sell, lease, assign, give option or options to purchase or sell
or otherwise dispose of and deliver said Collateral (or contract to do so) or any part thereof, in one or more parcels at public or private sale or sales, at any exchange or broker’s board or at any of the Secured Party’s offices or
elsewhere at such prices as it may deem best, for cash or on credit or for future delivery without assumption of any credit risk. 
 8.2.3. The Secured Party shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or any part of said Collateral so sold, free of any right or
equity of redemption in the Debtor, which right or equity is hereby expressly waived and released. 
  

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 8.2.4. At the Secured Party’s request, the Debtor shall assemble the Collateral and
make it available to the Secured Party at places which the Secured Party shall reasonably select, whether at the Debtor’s premises or elsewhere. 
 82.5. The Secured Party shall retain the net proceeds of the Collateral arising from any collection, sale, recovery, receipt or appropriation, after the payment of all expenses of every kind incurred therein or
incidental to the care, safekeeping or otherwise of any or all of the Collateral or in any way relating to the rights of the Secured Party hereunder, including reasonable attorneys’ fees and legal expenses, for application by it to the payment
of the Obligations in such order as the Secured Party shall elect and Debtor shall remain liable for any deficiency remaining unpaid after such application; after applying over such net proceeds as set forth above, after the payment by the Secured
Party of any other amount otherwise required to be paid, the Secured Party shall account for the surplus, if any, to the Debtor. 
 8.2.6. Unless the Collateral is perishable or threatens to decline speedily in value or is of the type customarily sold on a recognized market, the Secured Party must give at least ten (10) days’ notice of the time and place of
any public sale or of the time after which a private sale may take place; the Debtor further agrees that such notice is reasonable notification of such matters and that no notification need be given by the Secured Party to the Debtor if the Debtor
has executed, after the occurrence of an Event of Default, a statement renouncing or modifying any right to notification of sale or other intended disposition. 
 8.2.7. The Debtor shall pay to the Secured Party, on demand, any and all expenses, including any reasonable attorneys’ fees and legal
expenses, incurred or paid by the Secured Party in protecting or enforcing its rights, powers and remedies hereunder or under any other agreement between the parties. 
 IX. SET-OFF 
 Debtor hereby grants to Secured Party a lien, security interest and right of
setoff as security for all liabilities and obligations to Secured Party, whether now existing or hereafter arising, upon and against all deposits, credits, collateral and property, now or hereafter in the possession, safekeeping or control of
Secured Party or any entity under the control of Bank of America Corporation, or in transit to any of them. At any time, without demand or notice, Secured Party may set off the same or any part thereof and apply the same to any liability or
obligation of Debtor even though unmatured and regardless of the adequacy of any collateral securing the Obligations. ANY AND ALL RIGHTS TO REQUIRE SECURED PARTY TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES
THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF DEBTOR, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED. 
  

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 X. LIMITATION ON SECURED PARTY’S 
 DUTY WITH RESPECT TO CARE OF COLLATERAL 
 The Secured Party shall not have any duty as to any Collateral which is not in its possession or control. 
 XI. NOTICES

 Any demand or notice required or permitted to be given hereunder shall be deemed effective three (3) business days after
being deposited in the United States Mail and sent by certified mail, return receipt requested, postage prepaid, addressed to the Secured Party at the Secured Party’s Address (with a copy to R. Jeffrey Knisley, Esq., Roberts, Carroll,
Feldstein & Peirce Incorporated, 10 Weybosset Street, Providence, Rhode Island 02903) or to the Debtor at the Debtor’s Address (with a copy to Steven Rosenbaum, Esq., Poore & Rosenbaum LLP, 30 Exchange Terrace, Providence,
Rhode Island 02903) or to such other address as may be provided by the party to be notified, on ten (10) days’ prior written notice to the other party. 
 XII. GENERAL PROVISIONS 
 12.1. Severability. Any provision of this Security
Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable that provision in any other jurisdiction. 
 12.2. No
Waiver by the Secured Party; Cumulative Remedies. The Secured Party shall not by any act, delay, omission or otherwise be deemed to have waived any of its rights or remedies hereunder, and no waiver shall be valid unless in writing and
signed by the Secured Party, and then only to the extent therein set forth. A waiver by the Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which the Secured Party would
otherwise have had on any future occasion. No failure to exercise nor any delay in exercising on the part of the Secured Party, of any right, power or privilege hereunder, shall operate as a waiver thereof, nor shall any single or partial exercise
of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies hereunder provided are cumulative and may be exercised singly or concurrently,
and are not exclusive of any rights or remedies provided by law. None of the terms or provisions of this Agreement may be waived, modified, amended or supplemented except by an instrument in writing, duly executed by the Secured Party. 

12.3. Successors and Assigns. Each reference herein to the Secured Party shall be deemed to include its successors and assigns, and each
reference to the Debtor and any pronouns referring thereto as used herein shall be construed in the masculine, feminine, neuter, singular or plural, as the context may require, and shall be deemed to include the legal representatives, successors and
assigns of the Debtor, all of whom shall be bound by the provisions hereof. The term “Debtor” as used herein shall, if the Agreement is signed by more than one Debtor, mean, unless this Agreement otherwise provides or unless the context
otherwise requires, the 
  

 15 

 
“Debtor and each of them” and each and every representation, promise, agreement and undertaking shall be joint and several, except that the
granting of the security interest, right of set-off and lien shall be by each of the Debtors in its several respective property. In the event that there is more than one Debtor, any loan which is secured by this Agreement shall be deemed to be made
at the request of and for the benefit of each Debtor. 
 12.4. Governing Law. This Agreement is delivered in the State of Rhode
Island to the Secured Party and the rights, remedies, duties and obligations of the parties hereto and all provisions hereof shall be governed by and construed in accordance with the internal laws (and not the law of conflicts) of the State of Rhode
Island. 
 12.5. Further Indemnification. The Debtor agrees to pay, and to save the Secured Party harmless from, any and all
liabilities with respect to or resulting from any delay in paying any and all excise, sales or other taxes which may be payable or determined to be payable with respect to any of the Collateral or in connection with any of the transactions
contemplated by this Agreement. 
 12.6. Complete Agreement. This Agreement contains the entire understanding between the
parties hereto with respect to the transactions contemplated herein and such understanding shall not be modified except in writing signed by or in behalf of the parties hereto. 
 12.7. Section Headings. The section headings herein are included for convenience only and shall not be deemed to be a part of this
Agreement. 
 12.8. Assignment by Secured Party. The Secured Party may, from time to time, without notice to the Debtor, sell,
assign, transfer or otherwise dispose of all or any part of the Obligations and/or the Collateral therefor. In such event, each and every immediate and successive purchaser, assignee, transferee or holder of all or any part of the Obligations and/or
the Collateral shall have the right to enforce this Agreement by legal action or otherwise for its own benefit as fully as if such purchaser, assignee, transferee or holder were herein by name specifically given such rights. The Secured Party shall
have an unimpaired right to enforce this Agreement for its benefit to that portion of the Obligations of the Debtor as the Secured Party has not sold, assigned, transferred or otherwise disposed of. 
  

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 IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized officers of the
parties hereto as of the date first above written. 
  

							
	WITNESS:	 		  	Summer Infant, Inc.
				
	 /s/ Steven Rosenbaum
	 		  	By:	 	 /s/ Mark D. Gorton

		 		  	Name:	 	Mark D. Gorton
		 		  	Title:	 	VP Finance
			
		 		  	Bank of America, N.A.
				
	  
	 		  	By:	 	 /s/ David J. Angell

		 		  	Name:	 	David J. Angell
		 		  	Title:	 	Senior Vice President

  

 17

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