Reaffirmation of Guaranty Agreement among Ronson Corporation, Ronson Consumer Products Corporation, and Lender

Contract Categories: Business Finance › Guaranty Agreements
Summary

Ronson Corporation, as guarantor, reaffirms its obligations under a previous Corporate Guaranty Agreement related to the borrower's loan with the lender. The company acknowledges a financial covenant default and agrees to provide updated financial forecasts by September 30, 2005. The lender has agreed to waive the covenant breach for this period without prejudice. The agreement is signed by Ronson Corporation and Ronson Consumer Products Corporation, confirming their ongoing commitment to the guaranty and the lender's terms.

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EX-10.B 3 ex10-b.txt Page 7 of 14 Exhibit 10.b REAFFIRMATION OF GUARANTY ------------------------- The undersigned guarantor of the Obligations of the Borrower to the Lender pursuant to a Corporate Guaranty Agreement dated January 6, 1995 ("Guaranty") does hereby acknowledge and consent to the transaction contemplated by the Amendment and reaffirms the covenants, representations and warranties in the Guaranty are absolute, unconditional and in full force and effect. Further, the undersigned acknowledges its failure to maintain earnings (or losses) (but excluding therefrom extraordinary items and non-recurring gains) before interest, taxes, depreciation and amortization of not less than $1,076,000 for the period ending September 30, 2005, tested on a rolling 4 quarter basis. As a result, an Event of Default has occurred under the Loan Agreement. The Borrower and the undersigned have requested the Lender to waive this covenant for such period and Lender has agreed to do same without prejudice. The undersigned further agrees to deliver to Lender by September 30, 2005, forecasted profit and loss statements for the fourth quarter (2005) for Borrower and Ronson Aviation, Inc., all in form and substance satisfactory to Lender. WITNESS: RONSON CORPORATION By: By: ---------------------------- ------------------------------------- Daryl K. Holcomb Louis V. Aronson, II Vice President President and Chief Executive Officer AGREED: RONSON CONSUMER PRODUCTS CORPORATION By: ---------------------------------- Louis V. Aronson, II President and Chief Executive Officer