Under the Personal Guaranty, what is the liability of the Guarantors to Engineering For Kids?

In order to induce Engineering for Kids International, LLC ("Franchisor"), a Delaware limited liability company, to execute an Engineering For Kids Franchise Agreement (the "Agreement") with (the "Company"), a organized under the laws of , the undersigned individuals (collectively, the "Guarantors") unconditionally guarantee to Franchisor, its affiliates, and their successors and assigns that all of the Company's obligations under the Agreement, and under other agreements or arrangements between the Company and Franchisor, its affiliates, or their successors or assigns (collectively, the "Obligations"), will be punctually paid and performed. The liability of the Guarantors under this Guarantee is joint and several.

1. Guarantee

Upon demand by Franchisor, the Guarantors will immediately satisfy each Obligation. Each Guarantor waives any right to require Franchisor to: (a) proceed against the Company or any other Guarantor for any contribution or payment required under the Agreement; (b) proceed against or exhaust any security from the Company or any other Guarantor; or (c) pursue or exhaust any remedy, including any legal or equitable relief, against the Company or any other Guarantor. Without affecting the liability of the Guarantors under this Guarantee, Franchisor may, without notice to the Guarantors, extend, modify, or release any Obligation, or settle, adjust, or compromise any claims against the Company. The Guarantors waive notice of amendment of the Agreement and notice of demand for contribution or payment by the Company and agree to be bound by any and all such amendments and changes to the Agreement.

2. Indemnity

The Guarantors agree to hold harmless and indemnify Franchisor its affiliates, and their respective officers, directors, shareholders, and employees against any and all losses, damages, liabilities, costs and expenses (including reasonable attorneys' fees, reasonable costs of investigation, and court costs) resulting from, consisting of, or arising out of or in connection with any failure by the Company to perform any Obligation.

3. Duration

This Guarantee shall terminate upon the termination or expiration of the Agreement. However, all liabilities of the Guarantors arising from events which occurred on or before the effective date of termination shall remain in full force and effect until satisfied or discharged by the Guarantors. Upon the death of a Guarantor, the estate of the Guarantor shall be bound by this Guarantee, but only for defaults and obligations of the Guarantor existing at the time of death; and the obligations of the other Guarantors will continue in full force and effect.

4. Other Personal Obligations

Except as expressly authorized by the Agreement, the Guarantors shall not make use of any of the intellectual property rights licensed under the Agreement and shall not disclose to any third-party or make use of any trade secrets, know-how, systems or methods of which Guarantors may acquire knowledge by virtue of the training they may have received from Franchisor, their involvement in the business, or their ownership interest in the Company.

The Guarantors acknowledge and agree to be bound personally by all covenants not to compete, confidentiality provisions, provisions concerning the proprietary marks, governing law and dispute resolution provisions, as well as the restrictions on transfer of interest contained in the Agreement (except that this Guarantee does not grant the Guarantors any right to use the "Engineering For Kids" marks or system licensed to Company under the Agreement).

The Guarantors also agree to abide by the provisions of Section 25 of the Agreement concerning dispute resolution (including, but not limited to, the waiver of jury trials, waiver of punitive damages, waiver of class actions, and agreement to bring claims within one year).

Source: Item 22 — CONTRACTS (FDD page 53)