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 previous Corporate Guaranty Agreement. The company agrees to maintain specified earnings levels for certain periods in 2005, and acknowledges that failure to meet these requirements may be considered a default under the related loan agreement. This reaffirmation is made in connection with a recent amendment to the loan terms.

EX-10.F 7 ex10-f.txt Exhibit 10-f 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 agrees to maintain earnings (or losses) (but excluding therefrom extraordinary items and non-recurring gains) before interest, taxes, depreciation and amortization of not less than (i) $810,000 for the period ending June 30, 2005 and (ii) $1,076,000 for the period ending September 30, 2005, tested on a rolling 4 quarter basis. At the option of the Lender, any default of this covenant may be deemed an Event of default under the Loan Agreement. WITNESS: RONSON CORPORATION By: /s/ Daryl K. Holcomb By: /s/ Louis V. Aronson, II ----------------------------- --------------------------------- Daryl K. Holcomb Louis V. Aronson, II Vice President President and Chief Executive Officer