Reaffirmation of Guaranty by Ronson Corporation in Connection with Loan Agreement Amendment

Summary

Ronson Corporation, as guarantor, confirms its ongoing guarantee of the Borrower's obligations to the Lender under a prior Corporate Guaranty Agreement. The company acknowledges a financial covenant breach and that an event of default has occurred. The Lender has agreed to waive this breach for the specified period. Ronson Corporation also agrees to provide updated financial forecasts by September 30, 2005, as required by the Lender.

EX-10.G 8 ex10-g.txt Page 13 of 14 Exhibit 10.g REAFFIRMATION OF GUARANTY ------------------------- The undersigned guarantor of the Obligations of the Borrower to the Lender pursuant to a Corporate Guaranty Agreement dated August 28, 1997 ("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 has agreed to do same. 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 Consumer Products Corporation, 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