Document:

ex10-7.htm

    EXHIBIT  10.7

    

    

    CONTINUING
      GUARANTY

    (Business
      Organization)

    New
      York

    

    GUARANTOR: COMBINE
      BUYING GROUP, INC.

    Name

    

    100
      QUENTIN ROOSEVELT BOULEVARD, SUITE 508, GARDEN CITY, NEW
      YORK  11530

    Address
      of Chief Executive Office

    a
x
      corporation   o general
      partnership   o limited
      partnership   o limited liability
      company

    organized
      under the laws of the State of New York

    

    BORROWER: EMERGING
      VISION, INC.

    Name

    

    100
      QUENTIN ROOSEVELT BOULEVARD, SUITE 508, GARDEN CITY, NEW
      YORK  11530

    Address

    

    
      	
              BANK:

            	
              Manufacturers
                and Traders Trust Company, One M&T Plaza, Buffalo, New York
                14240  Attention: Office of General
                Counsel.

            

    

    

    1)           Guaranty.

    

    (a)           Guarantor,
      intending to be legally bound, hereby unconditionally guarantees the full and
      prompt payment and performance of any and all of Borrower’s Obligations (as
      defined below) to the Bank when due, whether at stated maturity, by acceleration
      or otherwise.  As used in this Guaranty, the term “Obligations” shall
      mean any and all obligations, indebtedness and other liabilities of Borrower
      to
      the Bank now or hereafter existing, of every kind and nature and all accrued
      and
      unpaid interest thereon and all Expenses (as defined below) including without
      limitation, whether such obligations, indebtedness and other liabilities (i)
      are
      direct, contingent, liquidated, unliquidated, secured, unsecured, matured or
      unmatured; (ii) are pursuant to a guaranty or surety in favor of the Bank;
      (iii)
      were originally contracted with the Bank or with another party (including
      obligations under a guaranty or surety originally in favor of such other party);
      (iv) are contracted by Borrower alone or jointly with one or more other parties;
      (v) are or are not evidenced by a writing; (vi) are renewed, replaced, modified
      or extended; and (vii) are periodically extinguished and subsequently reincurred
      or reduced and thereafter increased.  Guarantor will pay or perform
      its obligations under this Guaranty upon demand.  This Guaranty is and
      is intended to be a con­tinuing guaranty of payment (not collection) of the
      Obligations (irrespective of the aggregate amount thereof and whether or not
      the
      Obligations from time to time exceeds the amount of this Guaranty, if limited),
      independent of, in addition and without modification to, and does not impair
      or
      in any way affect, any other guaranty, indorsement, or other agreement in
      connection with the Obligations, or in connection with any other indebtedness
      or
      liability to the Bank or collateral held by the Bank therefor or with respect
      thereto, whether or not furnished by Guarantor.  Guarantor understands
      that the Bank can bring an action under this Guaranty without being required
      to
      exhaust other remedies or demand payment first from other parties.

    

    (b)           Guarantor
      acknowledges the receipt of valuable consideration for this Guaranty and
      acknowledges that the Bank is relying on this Guaranty in making a financial
      accommodation to Borrower, whether a commitment to lend, extension, modification
      or replacement of, or forbearance with respect to, any Obligation, cancellation
      of another guaranty, purchase of Borrower’s assets, or other valuable
      consideration.

    

    2)           Continuing,
      Absolute, Unconditional. This Guaranty is irrevocable, absolute,
      continuing, unconditional and general without any limitation.  This
      Guaranty is unlimited in amount (the “Guaranteed Amount”).

    

    3)           Guarantor’s
      Waivers & Authorizations.

    

    (a)           Guarantor’s
      obligations shall not be released, impaired or affected in any way including
      by
      any of the following, all of which Guarantor hereby waives (i) any bankruptcy,
      reorganization or insolvency under any law of Borrower or that of any other
      party, or by any action of a trustee in any such proceeding; (ii) any new
      agreements or obligations of Borrower or any other party with the Bank; (iii)
      any adjustment, compromise or release of any Obligations of Borrower, by the
      Bank or any other party; the existence or nonexistence or order of any filings,
      exchanges, releases, impairment or sale of, or failure to perfect or continue
      the perfection of a security interest in any collateral for the Obligations;
      (iv) any failure of Guarantor to receive notice of any intended disposition
      of
      such collateral; (v) any fictitiousness, incorrectness, invalidity or
      unenforceability, for any reason, of any instrument or other agreement which
      may
      evidence any Obligation; (vi) any composition, extension, stay or other
      statutory relief granted to Borrower including, without limitation, the
      expiration of the period of any statute of limitations with respect to any
      lawsuit or other legal proceeding against Borrower or any person in any way
      related to the Obligations or a part thereof or any collateral therefor; (vii)
      any change in form of organization, name, membership or ownership of Borrower
      or
      Guarantor; (viii) any refusal or failure of the Bank or any other person prior
      to the date hereof or hereafter to grant any additional loan or other credit
      accommodation to Borrower or the Bank’s or any other party’s receipt of notice
      of such refusal or failure; (ix) any setoff, defense or counterclaim of Borrower
      with respect to the obligations or otherwise arising, either directly or
      indirectly, in regard to the Obligations; or (x) any other circumstance that
      might otherwise constitute a legal or equitable defense to Guarantor’s
      obligations under this Guaranty.

    

    (b)           The
      Guarantor waives acceptance, assent and all rights of notice or demand including
      without limitation (i) notice of acceptance of this Guaranty, of Borrower’s
      default or nonpayment of any Obligation, and of changes in Borrower’s financial
      condition; (ii) presentment, protest, notice of protest and demand for payment;
      (iii) notice that any Obligations has been incurred or of the reliance by the
      Bank upon this Guaranty; and (iv) any other notice, demand or condition to
      which
      Guarantor might otherwise be entitled prior to the Bank’s reliance on or
      enforcement of this Guaranty.  Guarantor further authorizes the Bank,
      without notice, demand or additional reservation of rights against Guarantor
      and
      without affecting Guarantor’s obligations hereunder, from time to
      time:  (i) to renew, refinance, modify, subordinate, extend, increase,
      accelerate, or otherwise change the time for payment of, the terms of or the
      interest on the Obligations or any part thereof;(ii) to accept and hold
      collateral from any party for the payment of any or all of the Obligations,
      and
      to exchange, enforce or refrain from enforcing, or release any or all of such
      collateral; (iii) to accept any indorsement or guaranty of any or all of the
      Obligations or any negotiable instrument or other writing intended to create
      an
      accord and satisfaction with respect to any or all of the Obligations; (iv)
      to
      release, replace or modify the obligation of any indorser or guarantor, or
      any
      party who has given any collateral for any of all of the Obligations, or any
      other party in any way obligated to pay any or all of the Obligations, and
      to
      enforce or refrain from enforcing, or compromise or modify, the terms of any
      obligation of any such indorser, guarantor or party; (v) to dispose of any
      and
      all collateral securing the Obligations in any manner as the Bank, in its sole
      discretion, may deem appropriate, and to direct the order and the enforcement
      of
      any and all indorsements and guaranties relating to the Obligations in the
      Bank’s sole discretion; and (vi) to determine the manner, amount and time of
      application of payments and credits, if any, to be made on all or any part
      of
      the Obligations including, without limitation, if this Guaranty is limited
      in
      amount, to make any such application to Obligations, if
      any,
      in excess of the amount of this Guaranty.

    

    (c)           Notwithstanding
      any other provision in this Guaranty, Guarantor irrevocably waives, without
      notice, any right he or she may have at law or in equity (including without
      limitation any law subrogating Guarantor to the rights of the Bank) to seek
      contribution, indemnification or any other form of reimbursement from Borrower
      or any other obligor or guarantor of the Obligations for any disbursement made
      under this Guaranty or otherwise.

    

    4)           Termination.  This
      Guaranty shall remain in full force and effect as to each Guarantor until actual
      receipt by the Bank officer responsible for Borrower’s relationship with the
      Bank of written notice of Guarantor’s intent to terminate (or Guarantor’s death
      or incapacity) plus the lapse of a reasonable time for the Bank to act on such
      notice (the “Receipt of Notice”);  provided, however, this Guaranty
      shall remain in full force and effect thereafter until all Obligations
      outstanding, or contracted or committed for (whether or not outstanding), before
      such Receipt of Notice by the Bank, and any extensions, renewals or replacements
      thereof (whether made before or after such Receipt of Notice), together with
      interest accruing thereon after such Receipt of Notice, shall be finally and
      irrevocably paid in full.  Discontinuance of this Guaranty as to one
      Guarantor shall not operate as a discontinuance hereof as to any other
      guarantor.  Payment of all of the Obligations from time to time shall
      not operate as a discontinuance of this Guaranty, unless a Receipt of Notice
      as
      provided above has been received by the Bank.  Guarantor agrees that,
      to the extent that Borrower makes a payment or payments to the Bank on the
      Obligations, or the Bank receives any proceeds of collateral to be applied
      to
      the Obligations, which payment or payments or any part thereof are subsequently
      invalidated, declared to be fraudulent or preferential, set aside or otherwise
      are required to be repaid to Borrower, its estate, trustee, receiver or any
      other party, including, without limitation, under any bankruptcy law, state
      or
      federal law, common law or equitable cause, then to the extent of such
      repayment, the obligation or part thereof which has been paid, reduced or
      satisfied by such amount shall be reinstated and continued in full force and
      effect as of the date such initial payment, reduction or satisfaction occurred,
      notwithstanding any contrary action which may have been taken by the Bank in
      reliance upon such payment or payments.  As of the date any payment or
      proceeds of collateral are returned, the statute of limitations shall start
      anew
      with respect to any action or proceeding by the Bank against Guarantor under
      this Guaranty.  Likewise, any acknowledgment, reaffirmation or
      payment, by Borrower or any third party, of any portion of the Obligations,
      shall be deemed to be made as agent for the Guarantor, strictly for the purposes
      of tolling the running of (and/or preventing the operation of) the applicable
      statute of limitations with respect to any action or proceeding by the Bank
      against Guarantor under this Guaranty.

    

    5)           Expenses.  Guarantor
      agrees to reimburse the Bank on demand for all the Bank’s expenses, damages and
      losses of any kind or nature, including without limitation costs of collection
      and actual attorneys' fees and disbursements whether for internal or external
      counsel incurred by the Bank in attempting to enforce this Guaranty, collect
      any
      of the Obligations including any workout or bankruptcy proceedings or other
      legal proceedings or appeal, realize on any collateral, defense of any action
      under the prior paragraph or for any other purpose related to the Obligations
      (collectively, “Expenses”).  Expenses will accrue interest at the
      highest default rate in any instrument evidencing the Obligations until payment
      is actually received by the Bank.

    

    6)           Financial
      and Other Information.  Guarantor shall promptly deliver to
      the Bank copies of all annual reports, proxy statements and similar information
      distributed to shareholders, partners or members and of all filings with the
      Securities and Exchange Commission and the Pension Benefit Guaranty Corporation
      and shall provide in form satisfactory to the Bank: (i) within sixty days after
      the end of each of its first three fiscal quarters, consolidating and
      consolidated statements of income and cash flows for the quarter, for the
      corresponding quarter in the previous fiscal year and for the period from the
      end of the previous fiscal year, with a consolidating and consolidated balance
      sheet as of the quarter end; and (ii) within ninety days after the end of each
      fiscal year, consolidating and consolidated statements of Guarantor’s income and
      cash flows and its consolidating and consolidated balance sheet as of the end
      of
      such fiscal year, setting forth comparative figures for the preceding fiscal
      year and to be:

    

    oaudited                          oreviewed                           ocompiled

    

    by
      an
      independent certified public accountant acceptable to the Bank; all such
      statements shall be certified by Guarantor’s chief financial officer or partner
      to be correct, not misleading and in accordance with Guarantor’s records and to
      present fairly the results of Guarantor’s operations and cash flows and if
      annual its financial position at year end in conformity with generally accepted
      accounting principles.  If no box is checked, Guarantor shall deliver
      financial statements and information in the form and at the times satisfactory
      to the Bank.  Guarantor represents that its assets are not subject to
      any liens, encumbrances or contingent liabilities except as fully disclosed
      to
      the Bank in such statements.  Guarantor authorizes the Bank from time
      to time to obtain, verify and review all financial data deemed appropriate
      by
      the Bank in connection with this Guaranty and the Obligations, including without
      limitation credit reports from agencies.  Guarantor understands this
      Guaranty and has satisfied itself as to its meaning and consequences and
      acknowledges that it has made its own arrangements for keeping informed of
      changes or potential changes affecting the Borrower including the Borrower’s
      financial condition.

    
      
              

                            
                        
              CLB-137-NY (8/05)                                                                                            
            
          
          
           
          ©
Manufacturers
            and Traders Trust
            Company, 2005              
    

         

      

      
         

        
          

        

      

      
         

      

    

    

    7)                 Security;
      Right of Setoff.  As further security for payment of the
      Obligations, Expenses and any other obligations of Guarantor to the Bank,
      Guarantor hereby grants to the Bank a security interest in all money, securities
      and other property of Guarantor in the actual or constructive possession or
      control of the Bank or its affiliates including without limitation all deposits
      and other accounts owing at any time by the Bank or any of its affiliates in
      any
      capacity to Guarantor in any capacity (collectively, “Property”).  The
      Bank shall have the right to set off Guarantor’s Property against any of
      Guarantor’s obligations to the Bank.  Such set-off shall be deemed to
      have been exercised immediately at the time the Bank or such affiliate elect
      to
      do so.  The Bank shall also have all of the rights and remedies of a
      secured party under the Uniform Commercial Code, as the same may be in effect
      in
      the State of New York, as amended from time to time, in addition to those under
      this Guaranty and other applicable law and agreements.

    

    8)                 No
      Transfer of Assets.  Guarantor shall not transfer, reinvest
      or otherwise dispose of its assets in a manner or to an extent that would or
      might impair Guarantor’s ability to perform its obligations under this
      Guaranty.

    

    9)                 Nonwaiver
      by the Bank; Miscellaneous.  This Guaranty is intended by
      Guarantor to be the final, complete and exclusive expression of the agreement
      between Guarantor and the Bank. This Guaranty may be assigned by the Bank,
      shall
      inure to the benefit of the Bank and its successors and assigns, and shall
      be
      binding upon Guarantor and his or her legal representative, successors and
      assigns and any participation may be granted by the Bank herein in connection
      with the assignment or granting of a participation by the Bank in the
      Obligations or any part thereof.  All rights and remedies of the Bank
      are cumulative, and no such right or remedy shall be exclusive of any other
      right or remedy.  This Guaranty does not supersede any other guaranty
      or security granted to the Bank by Guarantor or others (except as to Guarantor’s
      Waiver of Subrogation rights above).  No single, partial or delayed
      exercise by the Bank of any right or remedy shall preclude exercise by the
      Bank
      at any time at its sole option of the same or any other right or remedy of
      the
      Bank without notice. Guarantor expressly disclaims any reliance on any course
      of
      dealing or usage of trade or oral representation of the Bank including, without
      limitation, representations to make loans to Borrower or enter into any other
      agreement with Borrower or Guarantor.  No course of dealing or other
      conduct, no oral agreement or representation made by the Bank or usage of trade
      shall operate as a waiver of any right or remedy of the Bank.  No
      waiver or amendment of any right or remedy of the Bank or release by the Bank
      shall be effective unless made specifically in writing by the
      Bank.  Each provision of this Guaranty shall be interpreted as
      consistent with existing law and shall be deemed amended to the extent necessary
      to comply with any conflicting law.  If any provision nevertheless is
      held invalid, the other provisions shall remain in effect.  Guarantor
      agrees that in any legal proceeding, a copy of this Guaranty kept in the Bank’s
      course of business may be admitted into evidence as an
      original.  Captions are solely for convenience and not part of the
      substance of this Guaranty.  If this Guaranty is limited pursuant to
      Paragraph 2 hereof, until the Obligations are indefeasibly paid in full, the
      Guaranteed Amount shall not be reduced in any manner whatsoever by any amounts
      which the Bank may realize before or after maturity of the Obligations (by
      acceleration, demand or otherwise), as a result of payments made by or on behalf
      of Borrower or by or on behalf of any other person or entity other than
      Guarantor primarily or secondarily liable for the Obligations or any part
      thereof, or otherwise credited to Borrower or such person or entity, or as
      a
      result of the exercise of the Bank’s rights with respect to any collateral for
      the Obligations or any part thereof.  Payments made to the Bank by
      Guarantor (other than, directly or indirectly, from collateral or other persons
      or entities liable for any portion of the Obligations) after maturity of the
      Obligations, by acceleration or otherwise, shall reduce the Guaranteed
      Amount.

    

    10)                 Joint
      and Several.  If there is more than one Guarantor, each
      Guarantor jointly and severally guarantees the payment and performance in full
      of all obligations under this Guaranty and the term “Guarantor” means each as
      well as all of them.  Guarantor also agrees that the Bank need not
      seek payment from any source other than the undersigned
      Guarantor.  This Guaranty is a primary
      obligation.  Guarantor’s obligations hereunder are separate and
      independent of Borrower’s, and a separate action may be brought against
      Guarantor whether or not action is brought or joined against or with Borrower
      or
      any other party.

    

    11)                 Authorization.  Guarantor
      certifies that it is an entity in the form described above duly organized and
      in
      good standing under the laws of the State of its organization and duly
      authorized to do business in each State material to the conduct of its
      business.  Guarantor has determined that the execution of this
      Guaranty will be in its best interests, to its direct benefit, incidental to
      its
      powers, and in furtherance of its duly acknowledged purposes and
      objectives.  Execution of this Guaranty by the persons signing below
      has been authorized by all necessary corporate action, including directors’ and
      shareholder consent or (as appropriate) is authorized by its partnership
      agreement or governing instrument.  Guarantor’s chief executive office
      is located at the above address.

    

    12)Notices.  Any
      demand or notice hereunder or under any applicable law pertaining hereto shall
      be in writing and duly given if delivered to Guarantor (at its address on the
      Bank’s records) or to the Bank (at the address on page one and separately to the
      Bank officer responsible for Borrower’s relationship with the
      Bank).  Such notice or demand shall be deemed sufficiently given for
      all purposes when delivered (i) by personal delivery and shall be deemed
      effective when delivered, or (ii) by mail or courier and shall be deemed
      effective three (3) business days after deposit in an official depository
      maintained by the United States Post Office for the collection of mail or one
      (1) business day after delivery to a nationally recognized overnight courier
      service (e.g., Federal Express).  Notice by e-mail is not
      valid notice under this or any other agreement between Guarantor and the
      Bank.

    

    13)                 Governing
      Law and Jurisdiction. This Guaranty has been delivered to and accepted
      by the Bank and will be deemed to be made in the State of New
      York.  Unless provided otherwise under federal law, this Guaranty will
      be interpreted in accordance with the laws of the State of New York excluding
      its conflict of laws rules.  GUARANTOR HEREBY IRREVOCABLY
      CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT IN ANY
      JUDICIAL DISTRICT OR COUNTY IN THE STATE OF NEW YORK WHERE THE BANK MAINTAINS
      A
      BRANCH AND CONSENTS THAT THE BANK MAY EFFECT ANY SERVICE OF PROCESS IN THE
      MANNER AND AT GUARANTOR’S ADDRESS SET FORTH ABOVE FOR PROVIDING NOTICE OR
      DEMAND; PROVIDED THAT NOTHING CONTAINED IN THIS GUARANTY WILL PREVENT THE BANK
      FROM BRINGING ANY ACTION, ENFORCING ANY AWARD OR JUDGMENT OR EXERCISING ANY
      RIGHTS AGAINST GUARANTOR INDIVIDUALLY, AGAINST ANY SECURITY OR AGAINST ANY
      PROPERTY OF GUARANTOR WITHIN ANY OTHER COUNTY, STATE OR OTHER FOREIGN OR
      DOMESTIC JURISDICTION.  Guarantor acknowledges and agrees
      that the venue provided above is the most convenient forum for both the Bank
      and
      Guarantor.  Guarantor hereby waives any objection to venue and any
      objection based on a more convenient forum in any action instituted under this
      Guaranty.

    

    14)                 Waiver
      of Jury Trial.  GUARANTOR AND THE BANK HEREBY KNOWINGLY, VOLUNTARILY,
      AND INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY GUARANTOR AND THE BANK MAY
      HAVE IN ANY ACTION OR PROCEEDING, IN LAW OR IN EQUITY, IN CONNECTION WITH THIS
      GUARANTY OR THE TRANSACTIONS RELATED HERETO.  GUARANTOR REPRESENTS AND
      WARRANTS THAT NO REPRESENTATIVE OR AGENT OF THE BANK HAS REPRESENTED, EXPRESSLY
      OR OTHERWISE, THAT THE BANK WILL NOT, IN THE EVENT OF LITIGATION, SEEK TO
      ENFORCE THIS JURY TRIAL WAIVER.  GUARANTOR ACKNOWLEDGES THAT THE BANK
      HAS BEEN INDUCED TO ENTER INTO THIS GUARANTY BY, AMONG OTHER THINGS, THE
      PROVISIONS OF THIS SECTION.

    

    Acknowledgment.  Guarantor
      acknowledges that it has read and understands all the provisions of this
      Guaranty, including the Governing Law, Jurisdiction and
Waiver of Jury Trial, and has been advised by counsel as
      necessary or appropriate.

    

    

    GUARANTOR:

    

    DATE
      August 7,
      2007                                                                            COMBINE
      BUYING GROUP, INC.

    

    TIN
      #
      20-5598496                                                                           By:/s/Christopher
      G. Payan

    Christopher
      G. Payan, CEO

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    FOR
      BANK
      USE ONLY

    

    Authorization
      Confirmed:                                                                                                                                                                

    Signature

    
      
              

                            
                        
              CLB-137-NY (8/05)                                                                                            
            
          
          
           
          ©
Manufacturers
            and Traders Trust
            Company, 2005ex10-8.htm

    EXHIBIT  10.8

    

    

    CONTINUING
      GUARANTY

    (Business
      Organization)

    New
      York

    

    GUARANTOR: OG
      ACQUISITION, INC.

    Name

    

    100
      QUENTIN ROOSEVELT BOULEVARD, SUITE 508, GARDEN CITY, NEW
      YORK  11530

    Address
      of Chief Executive Office

    a
x
      corporation   o general
      partnership   o limited
      partnership   o limited liability
      company

    organized
      under the laws of the State of New York

    

    BORROWER: EMERGING
      VISION, INC.

    Name

    

    100
      QUENTIN ROOSEVELT BOULEVARD, SUITE 508, GARDEN CITY, NEW
      YORK  11530

    Address

    

    
      	
              BANK:

            	
              Manufacturers
                and Traders Trust Company, One M&T Plaza, Buffalo, New York
                14240  Attention: Office of General
                Counsel.

            

    

    

    1)           Guaranty.

    

    (a)           Guarantor,
      intending to be legally bound, hereby unconditionally guarantees the full and
      prompt payment and performance of any and all of Borrower’s Obligations (as
      defined below) to the Bank when due, whether at stated maturity, by acceleration
      or otherwise.  As used in this Guaranty, the term “Obligations” shall
      mean any and all obligations, indebtedness and other liabilities of Borrower
      to
      the Bank now or hereafter existing, of every kind and nature and all accrued
      and
      unpaid interest thereon and all Expenses (as defined below) including without
      limitation, whether such obligations, indebtedness and other liabilities (i)
      are
      direct, contingent, liquidated, unliquidated, secured, unsecured, matured or
      unmatured; (ii) are pursuant to a guaranty or surety in favor of the Bank;
      (iii)
      were originally contracted with the Bank or with another party (including
      obligations under a guaranty or surety originally in favor of such other party);
      (iv) are contracted by Borrower alone or jointly with one or more other parties;
      (v) are or are not evidenced by a writing; (vi) are renewed, replaced, modified
      or extended; and (vii) are periodically extinguished and subsequently reincurred
      or reduced and thereafter increased.  Guarantor will pay or perform
      its obligations under this Guaranty upon demand.  This Guaranty is and
      is intended to be a con­tinuing guaranty of payment (not collection) of the
      Obligations (irrespective of the aggregate amount thereof and whether or not
      the
      Obligations from time to time exceeds the amount of this Guaranty, if limited),
      independent of, in addition and without modification to, and does not impair
      or
      in any way affect, any other guaranty, indorsement, or other agreement in
      connection with the Obligations, or in connection with any other indebtedness
      or
      liability to the Bank or collateral held by the Bank therefor or with respect
      thereto, whether or not furnished by Guarantor.  Guarantor understands
      that the Bank can bring an action under this Guaranty without being required
      to
      exhaust other remedies or demand payment first from other parties.

    

    (b)           Guarantor
      acknowledges the receipt of valuable consideration for this Guaranty and
      acknowledges that the Bank is relying on this Guaranty in making a financial
      accommodation to Borrower, whether a commitment to lend, extension, modification
      or replacement of, or forbearance with respect to, any Obligation, cancellation
      of another guaranty, purchase of Borrower’s assets, or other valuable
      consideration.

    

    2)           Continuing,
      Absolute, Unconditional. This Guaranty is irrevocable, absolute,
      continuing, unconditional and general without any limitation.  This
      Guaranty is unlimited in amount (the “Guaranteed Amount”).

    

    3)           Guarantor’s
      Waivers & Authorizations.

    

    (a)           Guarantor’s
      obligations shall not be released, impaired or affected in any way including
      by
      any of the following, all of which Guarantor hereby waives (i) any bankruptcy,
      reorganization or insolvency under any law of Borrower or that of any other
      party, or by any action of a trustee in any such proceeding; (ii) any new
      agreements or obligations of Borrower or any other party with the Bank; (iii)
      any adjustment, compromise or release of any Obligations of Borrower, by the
      Bank or any other party; the existence or nonexistence or order of any filings,
      exchanges, releases, impairment or sale of, or failure to perfect or continue
      the perfection of a security interest in any collateral for the Obligations;
      (iv) any failure of Guarantor to receive notice of any intended disposition
      of
      such collateral; (v) any fictitiousness, incorrectness, invalidity or
      unenforceability, for any reason, of any instrument or other agreement which
      may
      evidence any Obligation; (vi) any composition, extension, stay or other
      statutory relief granted to Borrower including, without limitation, the
      expiration of the period of any statute of limitations with respect to any
      lawsuit or other legal proceeding against Borrower or any person in any way
      related to the Obligations or a part thereof or any collateral therefor; (vii)
      any change in form of organization, name, membership or ownership of Borrower
      or
      Guarantor; (viii) any refusal or failure of the Bank or any other person prior
      to the date hereof or hereafter to grant any additional loan or other credit
      accommodation to Borrower or the Bank’s or any other party’s receipt of notice
      of such refusal or failure; (ix) any setoff, defense or counterclaim of Borrower
      with respect to the obligations or otherwise arising, either directly or
      indirectly, in regard to the Obligations; or (x) any other circumstance that
      might otherwise constitute a legal or equitable defense to Guarantor’s
      obligations under this Guaranty.

    

    (b)           The
      Guarantor waives acceptance, assent and all rights of notice or demand including
      without limitation (i) notice of acceptance of this Guaranty, of Borrower’s
      default or nonpayment of any Obligation, and of changes in Borrower’s financial
      condition; (ii) presentment, protest, notice of protest and demand for payment;
      (iii) notice that any Obligations has been incurred or of the reliance by the
      Bank upon this Guaranty; and (iv) any other notice, demand or condition to
      which
      Guarantor might otherwise be entitled prior to the Bank’s reliance on or
      enforcement of this Guaranty.  Guarantor further authorizes the Bank,
      without notice, demand or additional reservation of rights against Guarantor
      and
      without affecting Guarantor’s obligations hereunder, from time to
      time:  (i) to renew, refinance, modify, subordinate, extend, increase,
      accelerate, or otherwise change the time for payment of, the terms of or the
      interest on the Obligations or any part thereof;(ii) to accept and hold
      collateral from any party for the payment of any or all of the Obligations,
      and
      to exchange, enforce or refrain from enforcing, or release any or all of such
      collateral; (iii) to accept any indorsement or guaranty of any or all of the
      Obligations or any negotiable instrument or other writing intended to create
      an
      accord and satisfaction with respect to any or all of the Obligations; (iv)
      to
      release, replace or modify the obligation of any indorser or guarantor, or
      any
      party who has given any collateral for any of all of the Obligations, or any
      other party in any way obligated to pay any or all of the Obligations, and
      to
      enforce or refrain from enforcing, or compromise or modify, the terms of any
      obligation of any such indorser, guarantor or party; (v) to dispose of any
      and
      all collateral securing the Obligations in any manner as the Bank, in its sole
      discretion, may deem appropriate, and to direct the order and the enforcement
      of
      any and all indorsements and guaranties relating to the Obligations in the
      Bank’s sole discretion; and (vi) to determine the manner, amount and time of
      application of payments and credits, if any, to be made on all or any part
      of
      the Obligations including, without limitation, if this Guaranty is limited
      in
      amount, to make any such application to Obligations, if
      any,
      in excess of the amount of this Guaranty.

    

    (c)           Notwithstanding
      any other provision in this Guaranty, Guarantor irrevocably waives, without
      notice, any right he or she may have at law or in equity (including without
      limitation any law subrogating Guarantor to the rights of the Bank) to seek
      contribution, indemnification or any other form of reimbursement from Borrower
      or any other obligor or guarantor of the Obligations for any disbursement made
      under this Guaranty or otherwise.

    

    4)           Termination.  This
      Guaranty shall remain in full force and effect as to each Guarantor until actual
      receipt by the Bank officer responsible for Borrower’s relationship with the
      Bank of written notice of Guarantor’s intent to terminate (or Guarantor’s death
      or incapacity) plus the lapse of a reasonable time for the Bank to act on such
      notice (the “Receipt of Notice”);  provided, however, this Guaranty
      shall remain in full force and effect thereafter until all Obligations
      outstanding, or contracted or committed for (whether or not outstanding), before
      such Receipt of Notice by the Bank, and any extensions, renewals or replacements
      thereof (whether made before or after such Receipt of Notice), together with
      interest accruing thereon after such Receipt of Notice, shall be finally and
      irrevocably paid in full.  Discontinuance of this Guaranty as to one
      Guarantor shall not operate as a discontinuance hereof as to any other
      guarantor.  Payment of all of the Obligations from time to time shall
      not operate as a discontinuance of this Guaranty, unless a Receipt of Notice
      as
      provided above has been received by the Bank.  Guarantor agrees that,
      to the extent that Borrower makes a payment or payments to the Bank on the
      Obligations, or the Bank receives any proceeds of collateral to be applied
      to
      the Obligations, which payment or payments or any part thereof are subsequently
      invalidated, declared to be fraudulent or preferential, set aside or otherwise
      are required to be repaid to Borrower, its estate, trustee, receiver or any
      other party, including, without limitation, under any bankruptcy law, state
      or
      federal law, common law or equitable cause, then to the extent of such
      repayment, the obligation or part thereof which has been paid, reduced or
      satisfied by such amount shall be reinstated and continued in full force and
      effect as of the date such initial payment, reduction or satisfaction occurred,
      notwithstanding any contrary action which may have been taken by the Bank in
      reliance upon such payment or payments.  As of the date any payment or
      proceeds of collateral are returned, the statute of limitations shall start
      anew
      with respect to any action or proceeding by the Bank against Guarantor under
      this Guaranty.  Likewise, any acknowledgment, reaffirmation or
      payment, by Borrower or any third party, of any portion of the Obligations,
      shall be deemed to be made as agent for the Guarantor, strictly for the purposes
      of tolling the running of (and/or preventing the operation of) the applicable
      statute of limitations with respect to any action or proceeding by the Bank
      against Guarantor under this Guaranty.

    

    5)           Expenses.  Guarantor
      agrees to reimburse the Bank on demand for all the Bank’s expenses, damages and
      losses of any kind or nature, including without limitation costs of collection
      and actual attorneys' fees and disbursements whether for internal or external
      counsel incurred by the Bank in attempting to enforce this Guaranty, collect
      any
      of the Obligations including any workout or bankruptcy proceedings or other
      legal proceedings or appeal, realize on any collateral, defense of any action
      under the prior paragraph or for any other purpose related to the Obligations
      (collectively, “Expenses”).  Expenses will accrue interest at the
      highest default rate in any instrument evidencing the Obligations until payment
      is actually received by the Bank.

    

    6)           Financial
      and Other Information.  Guarantor shall promptly deliver to
      the Bank copies of all annual reports, proxy statements and similar information
      distributed to shareholders, partners or members and of all filings with the
      Securities and Exchange Commission and the Pension Benefit Guaranty Corporation
      and shall provide in form satisfactory to the Bank: (i) within sixty days after
      the end of each of its first three fiscal quarters, consolidating and
      consolidated statements of income and cash flows for the quarter, for the
      corresponding quarter in the previous fiscal year and for the period from the
      end of the previous fiscal year, with a consolidating and consolidated balance
      sheet as of the quarter end; and (ii) within ninety days after the end of each
      fiscal year, consolidating and consolidated statements of Guarantor’s income and
      cash flows and its consolidating and consolidated balance sheet as of the end
      of
      such fiscal year, setting forth comparative figures for the preceding fiscal
      year and to be:

    

    oaudited                          oreviewed                           ocompiled

    

    by
      an
      independent certified public accountant acceptable to the Bank; all such
      statements shall be certified by Guarantor’s chief financial officer or partner
      to be correct, not misleading and in accordance with Guarantor’s records and to
      present fairly the results of Guarantor’s operations and cash flows and if
      annual its financial position at year end in conformity with generally accepted
      accounting principles.  If no box is checked, Guarantor shall deliver
      financial statements and information in the form and at the times satisfactory
      to the Bank.  Guarantor represents that its assets are not subject to
      any liens, encumbrances or contingent liabilities except as fully disclosed
      to
      the Bank in such statements.  Guarantor authorizes the Bank from time
      to time to obtain, verify and review all financial data deemed appropriate
      by
      the Bank in connection with this Guaranty and the Obligations, including without
      limitation credit reports from agencies.  Guarantor understands this
      Guaranty and has satisfied itself as to its meaning and consequences and
      acknowledges that it has made its own arrangements for keeping informed of
      changes or potential changes affecting the Borrower including the Borrower’s
      financial condition.

    
      
              

                            
                        
              CLB-137-NY (8/05)                                                                                            
            
          
          
           
          ©
Manufacturers
            and Traders Trust
            Company, 2005              
    

         

      

      
         

        
          

        

      

      
         

      

    

    

    7)                 Security;
      Right of Setoff.  As further security for payment of the
      Obligations, Expenses and any other obligations of Guarantor to the Bank,
      Guarantor hereby grants to the Bank a security interest in all money, securities
      and other property of Guarantor in the actual or constructive possession or
      control of the Bank or its affiliates including without limitation all deposits
      and other accounts owing at any time by the Bank or any of its affiliates in
      any
      capacity to Guarantor in any capacity (collectively, “Property”).  The
      Bank shall have the right to set off Guarantor’s Property against any of
      Guarantor’s obligations to the Bank.  Such set-off shall be deemed to
      have been exercised immediately at the time the Bank or such affiliate elect to
      do so.  The Bank shall also have all of the rights and remedies of a
      secured party under the Uniform Commercial Code, as the same may be in effect
      in
      the State of New York, as amended from time to time, in addition to those under
      this Guaranty and other applicable law and agreements.

    

    8)                 No
      Transfer of Assets.  Guarantor shall not transfer, reinvest
      or otherwise dispose of its assets in a manner or to an extent that would or
      might impair Guarantor’s ability to perform its obligations under this
      Guaranty.

    

    9)                 Nonwaiver
      by the Bank; Miscellaneous.  This Guaranty is intended by
      Guarantor to be the final, complete and exclusive expression of the agreement
      between Guarantor and the Bank. This Guaranty may be assigned by the Bank,
      shall
      inure to the benefit of the Bank and its successors and assigns, and shall
      be
      binding upon Guarantor and his or her legal representative, successors and
      assigns and any participation may be granted by the Bank herein in connection
      with the assignment or granting of a participation by the Bank in the
      Obligations or any part thereof.  All rights and remedies of the Bank
      are cumulative, and no such right or remedy shall be exclusive of any other
      right or remedy.  This Guaranty does not supersede any other guaranty
      or security granted to the Bank by Guarantor or others (except as to Guarantor’s
      Waiver of Subrogation rights above).  No single, partial or delayed
      exercise by the Bank of any right or remedy shall preclude exercise by the
      Bank
      at any time at its sole option of the same or any other right or remedy of
      the
      Bank without notice. Guarantor expressly disclaims any reliance on any course
      of
      dealing or usage of trade or oral representation of the Bank including, without
      limitation, representations to make loans to Borrower or enter into any other
      agreement with Borrower or Guarantor.  No course of dealing or other
      conduct, no oral agreement or representation made by the Bank or usage of trade
      shall operate as a waiver of any right or remedy of the Bank.  No
      waiver or amendment of any right or remedy of the Bank or release by the Bank
      shall be effective unless made specifically in writing by the
      Bank.  Each provision of this Guaranty shall be interpreted as
      consistent with existing law and shall be deemed amended to the extent necessary
      to comply with any conflicting law.  If any provision nevertheless is
      held invalid, the other provisions shall remain in effect.  Guarantor
      agrees that in any legal proceeding, a copy of this Guaranty kept in the Bank’s
      course of business may be admitted into evidence as an
      original.  Captions are solely for convenience and not part of the
      substance of this Guaranty.  If this Guaranty is limited pursuant to
      Paragraph 2 hereof, until the Obligations are indefeasibly paid in full, the
      Guaranteed Amount shall not be reduced in any manner whatsoever by any amounts
      which the Bank may realize before or after maturity of the Obligations (by
      acceleration, demand or otherwise), as a result of payments made by or on behalf
      of Borrower or by or on behalf of any other person or entity other than
      Guarantor primarily or secondarily liable for the Obligations or any part
      thereof, or otherwise credited to Borrower or such person or entity, or as
      a
      result of the exercise of the Bank’s rights with respect to any collateral for
      the Obligations or any part thereof.  Payments made to the Bank by
      Guarantor (other than, directly or indirectly, from collateral or other persons
      or entities liable for any portion of the Obligations) after maturity of the
      Obligations, by acceleration or otherwise, shall reduce the Guaranteed
      Amount.

    

    10)                 Joint
      and Several.  If there is more than one Guarantor, each
      Guarantor jointly and severally guarantees the payment and performance in full
      of all obligations under this Guaranty and the term “Guarantor” means each as
      well as all of them.  Guarantor also agrees that the Bank need not
      seek payment from any source other than the undersigned
      Guarantor.  This Guaranty is a primary
      obligation.  Guarantor’s obligations hereunder are separate and
      independent of Borrower’s, and a separate action may be brought against
      Guarantor whether or not action is brought or joined against or with Borrower
      or
      any other party.

    

    11)                 Authorization.  Guarantor
      certifies that it is an entity in the form described above duly organized and
      in
      good standing under the laws of the State of its organization and duly
      authorized to do business in each State material to the conduct of its
      business.  Guarantor has determined that the execution of this
      Guaranty will be in its best interests, to its direct benefit, incidental to
      its
      powers, and in furtherance of its duly acknowledged purposes and
      objectives.  Execution of this Guaranty by the persons signing below
      has been authorized by all necessary corporate action, including directors’ and
      shareholder consent or (as appropriate) is authorized by its partnership
      agreement or governing instrument.  Guarantor’s chief executive office
      is located at the above address.

    

    12)Notices.  Any
      demand or notice hereunder or under any applicable law pertaining hereto shall
      be in writing and duly given if delivered to Guarantor (at its address on the
      Bank’s records) or to the Bank (at the address on page one and separately to the
      Bank officer responsible for Borrower’s relationship with the
      Bank).  Such notice or demand shall be deemed sufficiently given for
      all purposes when delivered (i) by personal delivery and shall be deemed
      effective when delivered, or (ii) by mail or courier and shall be deemed
      effective three (3) business days after deposit in an official depository
      maintained by the United States Post Office for the collection of mail or one
      (1) business day after delivery to a nationally recognized overnight courier
      service (e.g., Federal Express).  Notice by e-mail is not
      valid notice under this or any other agreement between Guarantor and the
      Bank.

    

    13)                 Governing
      Law and Jurisdiction. This Guaranty has been delivered to and accepted
      by the Bank and will be deemed to be made in the State of New
      York.  Unless provided otherwise under federal law, this Guaranty will
      be interpreted in accordance with the laws of the State of New York excluding
      its conflict of laws rules.  GUARANTOR HEREBY IRREVOCABLY
      CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT IN ANY
      JUDICIAL DISTRICT OR COUNTY IN THE STATE OF NEW YORK WHERE THE BANK MAINTAINS
      A
      BRANCH AND CONSENTS THAT THE BANK MAY EFFECT ANY SERVICE OF PROCESS IN THE
      MANNER AND AT GUARANTOR’S ADDRESS SET FORTH ABOVE FOR PROVIDING NOTICE OR
      DEMAND; PROVIDED THAT NOTHING CONTAINED IN THIS GUARANTY WILL PREVENT THE BANK
      FROM BRINGING ANY ACTION, ENFORCING ANY AWARD OR JUDGMENT OR EXERCISING ANY
      RIGHTS AGAINST GUARANTOR INDIVIDUALLY, AGAINST ANY SECURITY OR AGAINST ANY
      PROPERTY OF GUARANTOR WITHIN ANY OTHER COUNTY, STATE OR OTHER FOREIGN OR
      DOMESTIC JURISDICTION.  Guarantor acknowledges and agrees
      that the venue provided above is the most convenient forum for both the Bank
      and
      Guarantor.  Guarantor hereby waives any objection to venue and any
      objection based on a more convenient forum in any action instituted under this
      Guaranty.

    

    14)                 Waiver
      of Jury Trial.  GUARANTOR AND THE BANK HEREBY KNOWINGLY, VOLUNTARILY,
      AND INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY GUARANTOR AND THE BANK MAY
      HAVE IN ANY ACTION OR PROCEEDING, IN LAW OR IN EQUITY, IN CONNECTION WITH THIS
      GUARANTY OR THE TRANSACTIONS RELATED HERETO.  GUARANTOR REPRESENTS AND
      WARRANTS THAT NO REPRESENTATIVE OR AGENT OF THE BANK HAS REPRESENTED, EXPRESSLY
      OR OTHERWISE, THAT THE BANK WILL NOT, IN THE EVENT OF LITIGATION, SEEK TO
      ENFORCE THIS JURY TRIAL WAIVER.  GUARANTOR ACKNOWLEDGES THAT THE BANK
      HAS BEEN INDUCED TO ENTER INTO THIS GUARANTY BY, AMONG OTHER THINGS, THE
      PROVISIONS OF THIS SECTION.

    

    Acknowledgment.  Guarantor
      acknowledges that it has read and understands all the provisions of this
      Guaranty, including the Governing Law, Jurisdiction and
Waiver of Jury Trial, and has been advised by counsel as
      necessary or appropriate.

    

    

    GUARANTOR:

    

    DATE
      August 7,
      2007                                                                           OG
      ACQUISITION, INC.

    

    TIN
      #
      20-8084741                                                                           By:
/s/Christopher G. Payan

          Christopher
      G. Payan, CEO

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    FOR
      BANK
      USE ONLY

    

    Authorization
      Confirmed:                                                                                                                                                                

    Signature

    
      
              

                            
                        
              CLB-137-NY (8/05)                                                                                            
            
          
          
           
          ©
Manufacturers
            and Traders Trust
            Company, 2005

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