Document:

Exhibit
10.24

      

    Guarantee

    

    This
Guarantee (“Guarantee”) is made by the undersigned Louis S. Friedman, an
individual (“Guarantor”), to Summit Financial Resources, L.P., a Hawaii limited
partnership (“Summit”), as an inducement to Summit to enter into a Financing
Agreement (the “Financing Agreement”) with One Up Innovations, Inc., a Georgia
corporation, and FoamLabs, Inc., a Georgia corporation (individually and
collectively, “Client”).

     

    For good
and valuable consideration, receipt of which is hereby acknowledged, Guarantor,
as a compensated guarantor, agrees as follows:

     

    1.          Definitions.  Terms
defined in the above recitals shall have the meanings set forth
above.  Terms defined in the singular shall have the same meaning when
used in the plural and vice versa.  As used herein, the
term:

     

    “Account”
shall have the meaning set forth in the Financing Agreement.

    

    “Agreements”
means the Financing Agreement and any agreements related thereto.

     

    “Collateral”
means any and all collateral for the Indebtedness, now existing or hereafter
created or arising, including Accounts purchased by Summit.

     

    “Indebtedness”
means any and all obligations of Client owing to Summit arising from or related
to the Agreements.

     

    2.           Guarantee.  Guarantor
absolutely and unconditionally guarantees to Summit that Client shall promptly
and fully perform, pay and discharge the Indebtedness.  If Client
fails to pay any Indebtedness promptly as the same becomes due, Guarantor agrees
to pay the Indebtedness on demand.

     

    3.           Guarantee
Unconditional.  This Guarantee is an absolute and unconditional
guarantee of payment and not of collectibility.  The liability of
Guarantor hereunder is not conditional or contingent upon the genuineness,
validity, sufficiency or enforceability of the Agreements or any
Collateral.  Summit shall not be required to (i) proceed against
Client by suit or otherwise, (ii) foreclose, proceed against, liquidate or
exhaust any  Collateral, or (iii) exercise, pursue or enforce any
right or remedy Summit may have against any other guarantor (whether hereunder
or under a separate instrument), any other party, or otherwise, prior to
proceeding against Guarantor.

     

    4.           Collection Costs
and Attorneys Fees.  If Guarantor fails to pay any
Indebtedness promptly as the same becomes due, Guarantor agrees to pay all costs
and expenses, including reasonable attorneys fees, incurred by Summit in
enforcing or exercising any remedies under this Guarantee and any other rights
and remedies against Guarantor.  Additionally, Guarantor agrees to pay
all costs and expenses, including reasonable attorneys fees and legal expenses,
incurred by Summit in any bankruptcy proceedings of any type involving
Guarantor, including, without limitation, expenses incurred in modifying or
lifting the automatic stay, determining adequate protection, use of cash
collateral, or relating to any plan of reorganization.

     

    5.           Waiver by
Guarantor.  Guarantor expressly and absolutely, without
affecting the liability of Guarantor hereunder:

     

    a.           Waives
notice of acceptance by Summit of this Guarantee, the offer of guarantee
contemplated by this Guarantee, or any other notice which may be required
relative to the acceptance of this Guarantee;

     

    b.           Waives
notice of the failure of Client to make any payment on the Indebtedness and
notice of the failure of any party to pay to Summit any Account or other
indebtedness held by Summit as Collateral;

     

    One Up
Innovations, Inc.

    5/12/10

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    c.           Waives
notice of any adverse change in Client’s condition, financial or otherwise, or
of any other fact which might materially increase Guarantor’s risk, whether or
not Summit has knowledge of the same;

     

    d.           Waives
notice of transactions which have occurred under the Agreements or relating to
or affecting this Guarantee;

     

    e.           Waives
demand, protest, notice of dishonor or nonpayment or presentment for payment of
any note, agreement, or other evidence of the Indebtedness;

     

    f.         
  Waives notice of any kind in bringing and prosecuting any action on
any note, agreement, or other evidence of the Indebtedness, diligence in
connection with the collection on any note, agreement, or other evidence of
Indebtedness and the handling of any Collateral existing, or to exist, in
connection therewith; and

     

    g.           Waives
any right to require Summit to exhaust any Collateral or to first proceed
against any other person or property.

     

    6.           Consent to Summit’s
Acts.  Guarantor hereby authorizes and consents to Summit at
any time and from time to time, without notice or further consent of Guarantor,
doing the following and Guarantor agrees that the liability of Guarantor shall
not be released, diminished, impaired, reduced, exonerated, or affected
by:

     

    a.           The
taking or accepting, or the failure by Summit to take or accept, any other
collateral or guarantee for the Indebtedness;

     

    b.           The
modification, amendment, or extension, of any of the Agreements, or other
evidence of the Indebtedness, to the granting of any other credit, and to the
acceleration of maturity of the Indebtedness;

     

    c.           Any
complete or partial release, waiver, exchange, substitution, subordination,
impairment, loss, compromise, or other modification of the Collateral or any
other guarantee at any time existing in connection with the
Indebtedness;

     

    d.           The
complete or partial release or substitution of Client or any other guarantors on
the Indebtedness;

     

    e.           Any
renewal, extension, modification, acceleration, consolidation, adjustment,
indulgence, forbearance, waiver or compromise of the payment of any part or all
of the Indebtedness, or any liability of any other party or any other guarantor
therefor, or the performance of any covenant contained in any agreement had or
to be had in connection with the Indebtedness, the Agreements, or the
Collateral, either with or without notice to or consent of
Guarantor;

     

    f.      
     Any neglect, delay, omission, failure, or refusal
of Summit to take or prosecute any action for the collection of the Indebtedness
or any part thereof, or for the enforcement of any provision of any of the
Agreements, or to foreclose or exhaust, or take or prosecute any action in
connection with any Collateral or any guarantee of the Indebtedness,
specifically including, but without limitation, the failure of Summit to perfect
any security interest in any Collateral;

     

    g.           Any
increase or decrease in the rate of interest on any note, agreement, or other
evidence of the Indebtedness;

     

    h.           Acceptance
of any partial payments on the Indebtedness and the application of such partial
payments to part of the Indebtedness; or

     

    i.     
      Summit’s exercising any and all rights and
remedies available to Summit by law, at equity or agreement, even if the
exercise thereof may affect, modify, or eliminate Guarantor’s right of
subrogation against Client or any other party.

     

    One Up
Innovations, Inc.

    5/12/10

    
      
         

      

      
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    7.           Subordination by
Guarantor.

     

    a.           Collateral.  Irrespective
of the time, order, manner, or method of creation, attachment, or perfection,
any and all security interests, liens, mortgages, deeds of trust, assignments,
and any other right, title, or interest in, to, or on any Collateral, whether
obtained by agreement or by judicial process (“Encumbrance”), in favor of
Summit, now existing or hereafter created, shall have priority over any and all
Encumbrances in favor of Guarantor in, to, or on any Collateral, now existing or
hereafter created.  Guarantor hereby subordinates any and all
Encumbrances in favor of Guarantor in, to, or on any Collateral, now existing or
hereafter created, to any and all Encumbrances in favor of Summit in, to, or on
any Collateral, now existing or hereafter created.

     

    b.           Payment.  Upon
request by Summit, (i) the right of Guarantor to receive any payment, whether of
principal or interest, on any indebtedness owing by Client to Guarantor shall be
subordinated to the right of Summit to receive payment on the Indebtedness; (ii)
Guarantor shall not receive or accept any payments from or on behalf of Client,
any guarantor, or any other obligor on any indebtedness owing by Client to
Guarantor without the prior written consent of Summit, and, if Guarantor
receives any payment without Summit’s prior written consent, such payment shall
be received in trust for Summit and shall be immediately tendered to Summit to
be applied towards the Indebtedness; and (iii) Guarantor shall direct Client to
make all payments on any indebtedness owing to Guarantor by Client directly to
Summit to be applied towards the Indebtedness, which direction may not be
changed or terminated without the prior written consent of Summit.

     

    8.           Summit’s
Remedies.  In the event Summit obtains another guarantee for
the Indebtedness or there is more than one Guarantor under this Guarantee,
Guarantor agrees that Summit, in its sole discretion, may (i) bring suit against
Guarantor and/or the guarantors under any other guarantee, or any of the
Guarantors individually, for the Indebtedness, (ii) compromise or settle with
any one or more of Guarantor and/or the guarantors under any other guarantee for
such consideration as Summit may deem proper, and (iii) release one or more of
Guarantor and/or the guarantors under any other guarantee from
liability.  Guarantor further agrees that such action shall not impair
or affect the rights of Summit to collect the entire unpaid Indebtedness from
Guarantor pursuant to this Guarantee.

     

    9.           Application of
Payments.  Without affecting any obligation created hereby or
hereunder, Guarantor grants to Summit full power and authority, in its
discretion and at any time and in such manner and on such terms as it deems fit,
with or without notice to Guarantor, to apply payments and recoveries on the
Indebtedness in such manner and in such order of priority as Summit deems
proper, whether or not such obligation is due at the time of such
application.

     

    10.         Term of
Guarantee.  This Guarantee shall remain in full force and
effect until all Indebtedness  has been fully paid.  No
termination of this Guarantee by Guarantor shall be effective.

     

    11.         Subrogation, Contribution
and Indemnification.  Guarantor hereby waives any and all
rights of subrogation, contribution or indemnification against Client or any
other guarantor of any nature whatsoever, now existing or hereafter arising or
created.

     

    12.         Cumulative
Rights.  The rights and remedies herein conferred are
cumulative and not exclusive of any other rights or remedies and shall be in
addition to every other right, power and remedy herein specifically or hereafter
existing at law, in equity or by statute which Summit might otherwise have and
may be exercised from time to time and as often and in such order as may be
deemed expedient by Summit.  No delay or omission by Summit in the
exercise of any such right, power or remedy or in the pursuance of any remedy
shall impair any such right, power, or remedy or be construed to be a waiver of
any default or to be an acquiescence therein.

     

    13.         Governing
Law.  This Guarantee shall be governed by, and construed in
accordance with, the laws of the State of Utah.

     

    14.         Binding
Effect.  This Guarantee may be executed and delivered to Summit
prior to the execution and delivery of the Agreements.  This Guarantee
shall nonetheless be considered a binding, enforceable Guarantee upon its
execution and delivery to Summit.

     

    One Up
Innovations, Inc.

    5/12/10

    
      
         

      

      
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    15.         Revival
Clause.  If the incurring of any debt by Client or Guarantor or
the payment of any money or transfer of property to Summit by or on behalf of
Client, Guarantor, or any other party, should for any reason subsequently be
determined to be “voidable” or “avoidable” in whole or in part within the
meaning of any state or federal law (collectively “voidable transfers”),
including, without limitation, fraudulent conveyances or preferential transfers
under the United States Bankruptcy Code or any other federal or state law, and
Summit is required to repay or restore any voidable transfers or the amount or
any portion thereof, or upon the advice of Summit’s counsel is advised to do so,
then, as to any such amount or property repaid or restored, including all
reasonable costs, expenses, and attorneys fees of Summit related thereto, the
liability of Guarantor shall automatically be revived, reinstated and restored
and shall exist as though the voidable transfers had never been
made.

     

    16.         Severability and
Interpretation.  Any provision of this Guarantee which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction
only, be ineffective only 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 such provision in any other jurisdiction.  All
references in this Guarantee to the singular shall be deemed to include the
plural when the context so requires, and vice versa.  References in
the collective or conjunctive shall also include the disjunctive unless the
context otherwise clearly requires a different interpretation.

     

    17.         Continuing
Guarantee.  All agreements, representations, warranties, and
covenants made herein by Guarantor shall survive the execution and delivery of
this Guarantee and shall continue in effect so long as the Indebtedness or any
portion thereof is outstanding and unpaid, notwithstanding any termination of
the Guarantee.  All agreements, representations, warranties, and
covenants made herein by Guarantor shall survive any bankruptcy
proceedings.  This Guarantee shall bind the party making the same, and
its successors, assigns, heirs, executors, and personal
representatives.  The death, insolvency, bankruptcy, disability, or
lack of corporate power of Client, Guarantor, or any party at any time which is
liable for the payment of any part or all of any Indebtedness will not affect
this Guarantee.

     

    18.         Joint and Several
Liability.  Guarantor shall be jointly and severally liable
with Client and with any other guarantors for all obligations and liabilities
arising under this Guarantee.

     

    19.         Jury Waiver, Exclusive
Jurisdiction of Utah Courts.  GUARANTOR HEREBY IRREVOCABLY
WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR
COUNTERCLAIM, WHETHER IN CONTRACT OR IN TORT, AT LAW OR IN EQUITY, ARISING OUT
OF OR IN ANY WAY RELATED TO THIS GUARANTEE.

     

    Guarantor
acknowledges that by execution and delivery of this Guarantee, Guarantor has
transacted business in the State of Utah and Guarantor hereby voluntarily
submits himself or herself, consents to, and waives any defense, to the
jurisdiction of courts located in the State of Utah as to all matters relating
to or arising from this Guarantee.  EXCEPT AS EXPRESSLY AGREED IN
WRITING BY SUMMIT, THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF UTAH
SHALL HAVE SOLE AND EXCLUSIVE JURISDICTION OF ANY AND ALL CLAIMS, DISPUTES, AND
CONTROVERSIES ARISING UNDER OR RELATING TO THIS GUARANTEE.  NO
LAWSUIT, PROCEEDING, OR ANY OTHER ACTION RELATING TO OR ARISING UNDER THIS
GUARANTEE MAY BE COMMENCED OR PROSECUTED IN ANY OTHER FORUM EXCEPT AS EXPRESSLY
AGREED IN WRITING BY SUMMIT.

     

    20.         Disclosure of
Information.  Guarantor hereby consents to Summit disclosing to
any financial institution or investor providing financing or capital for Summit,
any and all information, knowledge, reports, and records, including, without
limitation, financial statements, concerning Guarantor.

     

    21.         Entire
Agreement.  This Guarantee constitutes the entire agreement
between Summit and Guarantor and may not be altered, amended or modified except
in writing signed by Summit and Guarantor.  All prior and
contemporaneous agreements and representations, express or implied, are merged
herein.

     

    [Remainder
of Page Intentionally Left Blank]

     

    One Up
Innovations, Inc.

    5/12/10    

    
      
         

      

      
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    Dated:  May
17, 2010.

     

    
      
        	 
      	
                Guarantor:

              
	 
      	 
      
	 
      	
                /s/ Louis S. Friedman

              
	 
      	
                Louis
      S. Friedman

              

      

    

    

    One Up
Innovations, Inc.

    5/12/10

    
      
         

      

      
        -5-Exhibit
10.25

    

    Addendum
to Financing Agreement

    (Inventory
Financing)

    

    Summit
Financial Resources, L.P. ("Summit"), and One Up Innovations, Inc., and
FoamLabs, Inc. (individually and collectively, "Client"), have entered into a
Financing Agreement dated May 17, 2010 (the "Financing
Agreement").  Summit and Client desire to modify the Financing
Agreement as set forth herein and agree as follows:

    

    1.           Definitions.  Except
as otherwise expressly provided herein, terms assigned defined meanings in the
Financing Agreement shall have the same defined meanings in this
Addendum.  As used herein, the term:

     

    "Acceptable
Inventory" means Inventory which consists of finished goods or raw materials
that can be readily marketed for sale without further processing and which is
subject to no security interest, lien, or encumbrance of any nature whatsoever
with priority over the security interest created by the Financing Agreement,
except any liens for current taxes which are not delinquent, but excluding
Inventory which consists of shipping materials or which, in the sole discretion
of Summit, is damaged, out-dated, obsolete, or otherwise unacceptable to
Summit.

     

    "Inventory
Advance Period" means a period commencing on October 1 of each calendar year and
ending on November 30 of the same calendar year.

     

    2.           Inventory
Advances.  During the Inventory Advance Period, Summit may, in
its sole discretion and without any duty to do so, elect from time to time to
make advances based upon Acceptable Inventory.  Advances based upon
Acceptable Inventory shall be made only in accordance with the below formula,
which formula may be changed or modified at any time in the sole discretion of
Summit without the consent or approval of Client:

     

    Advances
based upon Acceptable Inventory may be made upon request of Client so long as
the aggregate amount of all advances based upon Acceptable Inventory outstanding
and unpaid does not exceed the lesser of (a) Forty Percent
(40%) of the lower of book value or other value, as determined by Summit, of the
Acceptable Inventory, (b) Two Hundred Thousand Dollars ($200,000), (c)
Fifty Percent (50%) of the aggregate amount of outstanding Accounts on which an
Advance has been made, and (d) together with the aggregate amount of all other
outstanding Advances, the Maximum Credit Line.

     

    Summit
may decline to make advances based upon Acceptable Inventory for any reason or
for no reason, without notice, regardless of any course of conduct or past
advances based upon Acceptable Inventory by Summit.

     

    3.           Terms of Inventory
Advance.  Advances based upon Acceptable Inventory shall be
subject to the interest, Fees and Charges, and all terms and conditions
applicable to an Advance under the Financing Agreement.  In addition,
Client shall pay a monthly collateral management fee equal to One and
Nine-Tenths Percent (1.9%) of the average monthly balance of outstanding
advances based upon Acceptable Inventory for each month, or portion
thereof.  All accrued interest and collateral management fees based
upon Acceptable Inventory shall be due and payable monthly in
arrears.

     

    Notwithstanding
anything to the contrary herein or in the Financing Agreement, the amount of all
outstanding advances based upon Acceptable Inventory, including all interest,
collateral management fees, and other fees and charges thereon, shall be due and
payable in full on the last day of the Inventory Advance Period.  In
the event Client fails to repay in full all outstanding advances based upon
Acceptable Inventory, plus all interest, collateral management fees, and all
other fees and charges thereon, on or before the last day of the Inventory
Advance Period, such event shall constitute an Event of Default.

     

    4.           Sale of Inventory and Tender
of Account.  Client shall diligently sell and ship the
Acceptable Inventory upon which an advance has been made.  Upon
shipment and delivery of such Acceptable Inventory, the account created thereby
shall be promptly submitted to Summit for purchase.  If such
Acceptable Inventory is not promptly and diligently sold and shipped, or the
account created thereby does not meet all requirements of an Acceptable Account,
or Summit declines for any reason to purchase the account created thereby, the
advance based upon Acceptable Inventory may be treated as a Chargeback Account
under the Financing Agreement.

     

    One Up
Innovations, Inc.

    5/12/10

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.           Disbursement of
Advance.  Upon purchase by Summit of an Account for which there
has been an underlying advance based upon Acceptable Inventory, the Advance
shall be disbursed to Summit to repay the underlying advance based upon
Acceptable Inventory and all interest and Fees and Charges owing in connection
therewith.  The remainder, if any, shall be disbursed in accordance
with the terms and conditions of the Financing Agreement.

     

    6.           Secured by
Collateral.  The Collateral shall secure all obligations of
Client to Summit arising under or relating to this Addendum.

     

    7.           Rights and
Remedies.  Summit shall be entitled to all rights and remedies
concerning an advance based upon Acceptable Inventory as are provided for
Advances under the Financing Agreement.

     

    8.           Integrated
Agreements.  This Addendum, together with the Financing
Agreement, any other addenda to the Financing Agreement, and the documents
identified or contemplated therein, constitute the entire agreement between
Summit and Client and may not be altered or amended except by written agreement
signed by Summit and Client.  No provision hereof or thereof may be
waived by Summit except upon written waiver executed by Summit.  The
Financing Agreement, this Addendum, and all other addenda to the Financing
Agreement shall be read and construed together as one agreement.  This
Addendum shall be governed by and construed in accordance with the laws of the
State of Utah and shall be deemed to have been executed by the parties in the
State of Utah.

     

    9.           Financing Agreement Remains
in Full Force and Effect.  Except as expressly modified by this
Addendum, the Financing Agreement remains in full force and effect.

     

    [Remainder
of Page Intentionally Left Blank]

     

    One Up
Innovations, Inc.

    5/12/10

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Dated:  May
17, 2010.

     

    
      
        	 
      	
                Summit
      Financial Resources, L.P.

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ Mark J.
      Picillo

              
	 
      	
                Name: 

              	
                Mark J. Picillo

              
	 
      	
                Title:

              	
                Senior
      Vice President

              
	 
      	 
      	 
      
	 
      	
                One
      Up Innovations, Inc., a Georgia corporation

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ Louis S.
      Friedman

              
	 
      	
                Name:

              	
                Louis S. Friedman

              
	 
      	
                Title:

              	
                President
      and CEO

              
	 
      	 
      	 
      
	 
      	
                FoamLabs,
      Inc., a Georgia corporation

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ Louis S.
      Friedman

              
	 
      	
                Name:

              	
                Louis S. Friedman

              
	 
      	
                Title:

              	
                President
      and CEO

              

      

    

    

    The
undersigned, constituting all of the guarantors of the obligations of Client
under the Financing Agreement pursuant to Guarantees each dated May 17, 2010,
hereby consent to and authorize the foregoing Addendum to Financing Agreement
(Inventory Financing) and agree and acknowledge that the obligations of Client
created thereunder will be subject to and guaranteed by the
Guarantees.

    

    
      
        	 
      	
                /s/ Louis S. Friedman

              
	 
      	
                Louis
      S. Friedman

              
	 
      	 
      
	 
      	
                WES
      Consulting, Inc.

              
	 
      	 
      
	 
      	
                By:

              	
                /s/ Louis S. Friedman

              
	 
      	
                Name: 

              	
                Louis S. Friedman

              
	 
      	
                Title:

              	
                President
      & CEO

              

      

    

    

    One Up
Innovations, Inc.

    5/12/10

    
      
         

      

      
        3

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