SMUCKER J M CO
EX-10.14
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<TYPE>EX-10.14
<SEQUENCE>16
<FILENAME>l34412aexv10w14.htm
<DESCRIPTION>EX-10.14
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.14</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GUARANTY AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This <B>GUARANTY AGREEMENT </B>(as the same may hereafter be amended, supplemented or otherwise
modified, this &#147;<B>Guaranty</B>&#148;), dated as of November&nbsp;6, 2008, is by <B>THE FOLGERS COFFEE COMPANY</B>, a
Delaware corporation (together with its successors and assigns, the &#147;<B>Guarantor</B>,&#148;) in favor of the
Noteholders (defined below).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RECITALS:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the J.M. Smucker Company, an Ohio corporation (together with its successors and
assigns, the &#147;<B>Company</B>&#148;) has entered into those certain separate Note Purchase Agreements, each
dated as of June&nbsp;16, 1999 (as amended by that certain First Amendment to Note Purchase Agreements,
dated as of November&nbsp;30, 2001, that certain Second Amendment to Note Purchase Agreements, dated as
of May&nbsp;27, 2004, that certain Third Amendment to Note Purchase Agreements, dated as of May&nbsp;31,
2007, that certain Fourth Amendment to Note Purchase Agreements, dated as of October&nbsp;23, 2008, and
that certain Fifth Amendment to Note Purchase Agreements, dated as of November&nbsp;6, 2008, and as may
be amended, modified, restated or replaced from time to time, the &#147;<B>Note Purchase Agreement</B>&#148;), with
each of the purchasers listed on Schedule&nbsp;A attached thereto (collectively, the &#147;<B>Purchasers</B>,&#148; and
together with their successors and assigns including, without limitation, future holders of the
Notes (defined below), herein collectively referred to as the &#147;<B>Noteholders</B>&#148;), pursuant to which the
Company, among other things, issued to the Purchasers its 6.77% Senior Notes due June&nbsp;1, 2009, in
the aggregate principal amount of $75,000,000 (as may be amended or modified, from time to time,
the &#147;<B>Notes</B>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the Guarantor has become a Wholly-Owned Subsidiary of the Company; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the Company and the Guarantor are members of a group of related corporations, the
success of any one of which is dependent in part on the success of the other members of such group;
and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the Guarantor wishes to guaranty the Company&#146;s obligations to the Noteholders under
or in respect of the Note Purchase Agreement as provided herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW THEREFORE</B>, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Guarantor hereby
agrees as follows:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>DEFINITIONS.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All capitalized terms used herein and not defined herein have the respective meanings given
them in the Note Purchase Agreement.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>GUARANTY.</B></TD>
</TR>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>2.1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Guaranteed Obligations.</B></TD>
</TR>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor, in consideration of the execution and delivery of the Note Purchase Agreement
and the purchase of the Notes by the Purchasers, hereby irrevocably, unconditionally and absolutely
guarantees, on a continuing basis, to each Noteholder as and for the Guarantor&#146;s own debt, until
final and indefeasible payment of the amounts referred to in clause (a)&nbsp;below has been made:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the due and punctual payment by the Company of the principal of, and the Make-Whole
Amount (if any) and interest on, the Notes at any time outstanding and the due and punctual
payment of all other amounts payable, and all other Indebtedness owing, by the Company to
the Noteholders under the Note Purchase Agreement and the Notes (including, without
limitation, any monetary obligations incurred during the pendency of any bankruptcy,
insolvency, winding-up, receivership or other similar proceeding regardless of whether
allowed or allowable in such proceeding including, without limitation, interest accrued on
the Notes during any such proceeding), in each case when and as the same shall become due
and payable, whether at maturity, pursuant to mandatory or optional prepayment, by
acceleration or otherwise, all in accordance with the terms and provisions hereof and
thereof; it being the intent of the Guarantor that the guarantee set forth herein shall be a
continuing guarantee of payment and not a guarantee of collection; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the punctual and faithful performance, keeping, observance, and fulfillment by the
Company of all duties, agreements, covenants and obligations of the Company contained in the
Note Purchase Agreement and the Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of the obligations set forth in clause (a)&nbsp;and clause (b)&nbsp;of this Section&nbsp;2.1 are referred
to herein as the &#147;<B>Guaranteed Obligations.</B>&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.2. Payments and Performance.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that the Company fails to make, on or before the due date thereof, any payment to
be made in respect of the Guaranteed Obligations or if the Company shall fail to perform, keep,
observe, or fulfill any other obligation referred to in clause 2.1(a) or clause 2.1(b) of Section
2.1 in the manner provided in the Note Purchase Agreement and the Notes, the Guarantor shall cause
forthwith to be paid the moneys, or to be performed, kept, observed, or fulfilled each of such
obligations, in respect of which such failure has occurred in accordance with the terms and
provisions of the Note Purchase Agreement and the Notes. In furtherance of the foregoing, if an
Event of Default shall exist under paragraph (g)&nbsp;or (h)&nbsp;of Section&nbsp;11 of the Note Purchase
Agreement, all of the Guaranteed Obligations shall forthwith become due and payable without notice,
regardless of whether the acceleration of the Notes shall be stayed, enjoined, delayed or otherwise
prevented.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nothing shall discharge or satisfy the obligations of the Guarantor hereunder except the full
and final performance and indefeasible payment of the Guaranteed Obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.3. Releases.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor consents and agrees that, without any notice whatsoever to or by the Guarantor
and without impairing, releasing, abating, deferring, suspending, reducing, terminating or
otherwise affecting the obligations of the Guarantor hereunder, each Noteholder, by action or
inaction, may:
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) compromise or settle, renew or extend the period of duration or the time for the
payment, or discharge the performance of, or may refuse to, or otherwise not, enforce, or
may, by action or inaction, release all or any one or more parties to, any one or more of
the Note Purchase Agreement, the Notes, or any other guaranty or agreement or instrument
related thereto or hereto;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) assign, sell or transfer, or otherwise dispose of, any one or more of the Notes;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) grant waivers, extensions, consents and other indulgences of any kind whatsoever to
the Company, the Guarantor or any other Person liable in any manner in respect of all or any
part of the Guaranteed Obligations;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) amend, modify or supplement in any manner whatsoever and at any time (or from time
to time) any one or more of the Note Purchase Agreement, the Notes, any other guaranty or
any agreement or instrument related thereto or hereto;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) release or substitute any one of more of the endorsers or any other guarantors of
the Guaranteed Obligations whether parties hereto or not; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) sell, exchange, release, accept, surrender or enforce rights in, or fail to obtain
or perfect or to maintain, or cause to be obtained, perfected or maintained, the perfection
of any Lien or other security interest or charge on, by action or inaction, any property at
any time pledged or granted as security in respect of the Guaranteed Obligations, whether so
pledged or granted by the Company, the Guarantor or any other Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor hereby ratifies and confirms any such action specified in this Section&nbsp;2.3 and
agrees that the same shall be binding upon the Guarantor, whether or not the Guarantor shall have
consented thereto or received notice thereof. The Guarantor hereby waives any and all defenses,
counterclaims or offsets which the Guarantor might or could have by reason thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.4. Waivers.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the fullest extent permitted by law, the Guarantor hereby waives:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) notice of acceptance of this Guaranty;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) notice of any purchase or acceptance of the Notes under the Note Purchase
Agreement, or the creation, existence or acquisition of any of the Guaranteed Obligations,
subject to the Guarantor&#146;s right to make inquiry of each Noteholder to ascertain the amount
of the Guaranteed Obligations at any reasonable time;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) notice of the amount of the Guaranteed Obligations, subject to the Guarantor&#146;s
right to make inquiry of each Noteholder to ascertain the amount of the Guaranteed
Obligations at any reasonable time;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) notice of adverse change in the financial condition of the Company or any other
guarantor or any other fact that might increase the Guarantor&#146;s risk hereunder;
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) notice of presentment for payment, demand, protest, and notice thereof as to the
Notes or any other instrument;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) notice of any Default or Event of Default;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all other notices and demands to which the Guarantor might otherwise be entitled
(except if such notice or demand is specifically otherwise required to be given to the
Guarantor under this Guaranty);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the right by statute or otherwise to require any or each Noteholder to institute
suit against the Company, the Guarantor or any other guarantor or to exhaust the rights and
remedies of any or each Noteholder against the Company, the Guarantor, or any other
guarantor, the Guarantor being bound to the payment of each and all Guaranteed Obligations,
whether now existing or hereafter accruing, as fully as if such Guaranteed Obligations were
directly owing to each Noteholder by the Guarantor;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any defense arising by reason of any disability or other defense (other than the
defense that the Guaranteed Obligations shall have been fully and finally performed and
indefeasibly paid) of the Company or by reason of the cessation from any cause whatsoever of
the liability of the Company in respect thereof;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any stay (except in connection with a pending appeal), valuation, appraisal,
redemption or extension law now or at any time hereafter in force that, but for this waiver,
might be applicable to any sale of property of the Guarantor made under any judgment, order
or decree based on the Note Purchase Agreement, the Notes or this Guaranty, and the
Guarantor covenants that it will not at any time insist upon or plead, or in any manner
claim or take the benefit or advantage of, any such law; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) at all times prior to the full and final performance and indefeasible payment of
the Guaranteed Obligations, any claim of any nature arising out of any right of indemnity,
contribution, reimbursement, indemnification or any similar right or any claim of
subrogation (whether such right or claim arises under contract, common law or statutory or
civil law) arising in respect of any payment made under this Guaranty or in connection with
this Guaranty, against the Company or the Guarantor or the estate of the Company (including
Liens on the property of the Company or the estate of the Company or the Guarantor), in each
case whether or not the Company or the Guarantor at any time shall be the subject of any
proceeding brought under any bankruptcy law, and the Guarantor further agrees that it will
not file any claims against the Company or the Guarantor or the estate of the Company or the
Guarantor in the course of any such proceeding or otherwise, and further agrees that each
Noteholder may specifically enforce the provisions of this clause (k).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.5. Marshaling; Invalid Payments.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor consents and agrees:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that each Noteholder, and each Person acting for the benefit of one or more of the
Noteholders, shall be under no obligation to marshal any assets in favor of the Guarantor or
against or in payment of any or all of the Guaranteed Obligations; and
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) that, to the extent that the Company or the Guarantor makes a payment or payments
to any Noteholder, which payment or payments or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside or required, for any of
the foregoing reasons or for any other reason, to be repaid or paid over to a custodian,
trustee, receiver, administrative receiver, administrator or any other party or officer
under any bankruptcy law, insolvency, reorganization, recapitalization or other debtor
relief law, other common or civil law, or equitable cause or judgment, order or decision
thereunder, then, to the extent of such payment or repayment, the obligation or part thereof
intended to be satisfied thereby shall be revived and continued in full force and effect as
if such payment or payments had not been made and the Guarantor shall be primarily liable
for such obligation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.6. Immediate Liability.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor agrees that the liability of the Guarantor in respect of this Guaranty shall be
immediate and shall not be contingent upon the exercise or enforcement by any Noteholder or any
other Person of whatever remedies such Noteholder or other Person may have against the Company, the
Guarantor or any other guarantor or the enforcement of any Lien or realization upon any security
such Noteholder or other Person may at any time possess.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.7. Primary Obligations.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Guaranty is a primary and original obligation of the Guarantor and is an absolute,
unconditional, continuing and irrevocable guaranty of payment and performance and shall remain in
full force and effect regardless of any action by any Noteholder specified in Sections&nbsp;2.3 or 2.8
hereof or any future changes in conditions, including, without limitation, change of law or any
invalidity or irregularity with respect to the issuance or assumption of any obligations
(including, without limitation, the Notes) of or by the Company, the Guarantor or any other
guarantor, or with respect to the execution and delivery of any agreement (including, without
limitation, the Notes and the Note Purchase Agreement) of the Company or any other Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.8. No Reduction or Defense.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The obligations of the Guarantor under this Guaranty, and the rights of any Noteholder to
enforce such obligations by any proceedings, whether by action at law, suit in equity or otherwise,
shall not be subject to any reduction, limitation, impairment or termination, whether by reason of
any claim of any character whatsoever or otherwise, including, without limitation, claims of
waiver, release, surrender, alteration or compromise, and shall not be subject to any defense
(other than any defense based upon the irrevocable payment and performance in full of the
obligations of the Company under the Note Purchase Agreement and the Notes), set-off, counterclaim,
recoupment or termination whatsoever.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Without limiting the generality of the foregoing, no obligations of the Guarantor shall be
discharged or impaired by:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any default (including, without limitation, any Default or Event of Default),
failure or delay, willful or otherwise, in the performance of any obligations by the
Guarantor, the Company, any Subsidiary or any of their respective Affiliates;
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any proceeding of, or involving, the Company, the Guarantor or any other Subsidiary
under any bankruptcy law, or any merger, consolidation, reorganization, dissolution,
liquidation, sale of assets or winding-up or change in corporate or limited liability
company, as applicable, constitution or corporate or limited liability company, as
applicable, identity or loss of corporate or limited liability company, as applicable,
identity of the Company, the Guarantor any of the other Subsidiaries or any of their
respective Affiliates;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any incapacity or lack of power, authority or legal personality of, or dissolution
or change in the members or status of, the Company or any other Person;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) impossibility or illegality of performance on the part of the Company under the
Notes, the Note Purchase Agreement or any other instruments or agreements;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the invalidity, irregularity or unenforceability of the Notes, the Note Purchase
Agreement or any other instruments or agreements;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) in respect of the Company or any other Person, any change in law or change of
circumstances, whether or not foreseen or foreseeable, whether or not imputable to the
Company or any other Person, or other impossibility of performance through fire, explosion,
accident, labor disturbance, floods, droughts, embargoes, wars (whether or not declared),
terrorist activities, civil commotions, acts of God or the public enemy, delays or failure
of suppliers or carriers, inability to obtain materials or any other causes affecting
performance, or any other force majeure, whether or not beyond the control of the Company or
any other Person and whether or not of the kind hereinbefore specified;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any attachment, claim, demand, charge, Lien, order, process or any other happening
or event or reason, similar or dissimilar to the foregoing, or any withholding or diminution
at the source, by reason of any taxes, assessments, expenses, indebtedness, obligations or
liabilities of any character, foreseen or unforeseen, and whether or not valid, incurred by
or against any Person, corporation or entity, or any claims, demands, charges or Liens of
any nature, foreseen or unforeseen, incurred by any Person, or against any sums payable
under the Note Purchase Agreement or the Notes, so that such sums would be rendered
inadequate or would be unavailable to make the payments herein provided; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any order, judgment, decree, ruling or regulation (whether or not valid) of any
court of any nation or of any political subdivision thereof or any Governmental Authority,
or any other action, happening, event or reason whatsoever which shall delay, interfere
with, hinder or prevent, or in any way adversely affect, the performance by the Company of
any of its obligations under the Note Purchase Agreement or the Notes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.9. No Election.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Noteholder shall, individually or collectively, have the right to seek recourse against
the Guarantor to the fullest extent provided for herein for its obligations under this Guaranty.
No election to proceed in one form of action or proceeding, or against any party, or on any
obligation, shall constitute a waiver of such Noteholder&#146;s right to proceed in any other form of
action or proceeding or against other parties unless such Noteholder has expressly waived such
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">right in writing. Specifically, but without limiting the generality of the foregoing, no
action or proceeding by or on behalf of any Noteholder against the Company, the Guarantor or any
other Person under any document or instrument evidencing obligations of the Company or such other
Person to or for the benefit of such Noteholder shall serve to diminish the liability of the
Guarantor under this Guaranty except to the extent that such Noteholder unconditionally shall have
realized payment by such action or proceeding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.10. Individual Noteholder Rights.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the rights and remedies granted under this Guaranty to each Noteholder in respect of
the Notes held by such Noteholder may be exercised by such Noteholder without notice to, or the
consent of or any other action by, any other Noteholder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.11. Enforcement.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until all amounts which may be or become payable by the Company under or in connection with
the Note Purchase Agreement and the Notes, or by the Guarantor under or in connection with this
Guaranty, have been irrevocably paid in full, any Noteholder (or any trustee or agent on its
behalf) may refrain from applying or enforcing any security or rights held or received by such
Noteholder (or any trustee or agent on its behalf) in respect of those amounts, or apply and
enforce the same in such manner and order as it sees fit (whether against those amounts or
otherwise) and the Guarantor shall not be entitled to the benefit of the same.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.12. Other Enforcement Rights.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Noteholder may proceed to protect and enforce this Guaranty by suit or suits or
proceedings in equity, at law or in bankruptcy or insolvency, and whether for the specific
performance of any covenant or agreement contained herein or in execution or aid of any power
herein granted; or for the recovery of judgment for the obligations hereby guaranteed or for the
enforcement of any other proper, legal or equitable remedy available under applicable law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.13. Restoration of Rights and Remedies.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any Noteholder shall have instituted any proceeding to enforce any right or remedy against
the Guarantor under this Guaranty or otherwise and such proceeding shall have been discontinued or
abandoned for any reason, or shall have been determined adversely to such Noteholder, then and in
every such case each such Noteholder, the Company and the Guarantor shall, except as may be limited
or affected by any determination in such proceeding, be restored severally and respectively to its
respective former position hereunder, and thereafter the rights and remedies of such Noteholder
shall continue as though no such proceeding had been instituted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.14. Survival.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So long as the Guaranteed Obligations shall not have been fully and finally performed and
indefeasibly paid, the obligations of the Guarantor under this Guaranty shall survive the transfer
and payment of any Note and the payment in full of all the Notes.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.15. Subordination.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The payment of any amounts due with respect to any Indebtedness of the Company or any other
Person obligated in respect of the Guaranteed Obligations for money borrowed or credit received now
or hereafter owed to the Guarantor is hereby subordinated to the prior payment in full of all of
the Guaranteed Obligations. The Guarantor agrees that, after the occurrence of any default in the
payment or performance of any of the Guaranteed Obligations, the Guarantor will not demand, sue for
or otherwise attempt to collect any such Indebtedness of the Company or any other such Person to
the Guarantor until all of the Guaranteed Obligations shall have been paid in full. If,
notwithstanding the foregoing sentence, the Guarantor shall collect, enforce or receive any amounts
in respect of such Indebtedness while any Guaranteed Obligations are still outstanding, such
amounts shall be collected, enforced and received by the Guarantor as trustee for the Noteholders
and be paid over to the Noteholders on account of the Guaranteed Obligations without affecting in
any manner the liability of the Guarantor under the other provisions of this Guaranty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3. REPRESENTATIONS AND WARRANTIES.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor hereby represents and warrants to the Noteholders that:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>3.1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Affirmation of Representations and Warranties in Note Purchase Agreement.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor hereby represents and warrants that each of the representations and warranties
made by the Company as to the Company&#146;s Subsidiaries in the Note Purchase Agreement is true and
correct as to the Guarantor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.2. Economic Benefit.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor and the Company operate as separate businesses but are considered a single
consolidated business group of companies for purposes of GAAP and are dependent upon each other for
and in connection with their respective business activities and financial resources. The execution
and delivery by the Noteholders of the Note Purchase Agreement and the maintenance of certain
financial accommodations thereunder constitute an economic benefit to the Guarantor and the
incurrence by the Company of the Indebtedness under the Note Purchase Agreement and the Notes is in
the best interests of the Guarantor. The board of directors or other management board of the
Guarantor has deemed it advisable and in the best interest of the Guarantor that the transactions
provided for in the Note Purchase Agreement and this Guaranty be consummated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.3. Independent Credit Evaluation.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor has independently, and without reliance on any information supplied by any one
or more of the Noteholders, taken, and will continue to take, whatever steps the Guarantor deems
necessary to evaluate the financial condition and affairs of the Company, and the Noteholders shall
have no duty to advise the Guarantor of information at any time known to the Noteholders regarding
such financial condition or affairs.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.4. No Representation By Noteholders.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None of the Noteholders nor any trustee or agent acting on its behalf has made any
representation, warranty or statement to the Guarantor to induce the Guarantor to execute this
Guaranty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.5. Survival.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All representations and warranties made by the Guarantor herein shall survive the execution
hereof and may be relied upon by the Noteholders as being true and accurate until the Guaranteed
Obligations are fully and irrevocably paid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. COVENANTS.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor hereby covenants and agrees that, so long as any part of the Guaranteed
Obligations shall remain unpaid, the Guarantor will perform and observe, and cause each of its
Subsidiaries to perform and observe, all of the terms, covenants and agreements set forth in the
Note Purchase Agreement on its or their part to be performed or observed or that the Company has
agreed to cause the Guarantor or such Subsidiaries to perform or observe.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>5. GUARANTOR&#146;S AGREEMENT TO PAY ENFORCEMENT COSTS, ETC.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor further agrees, as the primary guarantor and not merely as a surety, to pay to
the Noteholders, on demand, all costs and expenses (including court costs and reasonable legal
expenses) incurred or expended by the Noteholders in connection with the Guaranteed Obligations,
this Guaranty and the enforcement thereof, together with interest on amounts recoverable under this
Section&nbsp;5 from the time when such amounts become due until payment, whether before or after
judgment, at the rate of interest for overdue principal set forth in the Note Purchase Agreement,
<I>provided </I>that if such interest exceeds the maximum amount permitted to be paid under applicable
law, then such interest shall be reduced to such maximum permitted amount.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6. SUCCESSORS AND ASSIGNS.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Guaranty shall bind the successors, assignees, trustees, and administrators of the
Guarantor and shall inure to the benefit of the Noteholders, and each of their respective
successors, transferees, participants and assignees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7. AMENDMENTS AND WAIVERS.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No amendment to, waiver of, or departure from full compliance with any provision of this
Guaranty, or consent to any departure by the Guarantor herefrom, shall be effective against any
Noteholder directly affected thereby unless it is in writing and signed by authorized officers of
the Guarantor and such Noteholder; <I>provided, however</I>, that any such waiver or consent shall be
effective only in the specific instance and for the purpose for which given. No failure by the
Noteholders to exercise, and no delay by the Noteholders in exercising, any right, remedy, power or
privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by
the Noteholders of any right, remedy, power or privilege hereunder preclude any other exercise
thereof, or the exercise of any other right, remedy, power or privilege.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>8. RIGHTS CUMULATIVE.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the rights and remedies of the Noteholders under this Guaranty shall be in addition to
all of their other rights and remedies under the Note Purchase Agreement and applicable law, and
nothing in this Guaranty shall be construed as limiting any such rights or remedies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>9. GOVERNING LAW.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE
RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE OF NEW YORK EXCLUDING
CHOICE-OF-LAW PRINCIPLES OF THE LAW OF SUCH STATE THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF
A JURISDICTION OTHER THAN SUCH STATE.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>10. JURISDICTION; SERVICE OF PROCESS; WAIVER OF JURY TRIAL.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THE GUARANTOR IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY NEW YORK STATE OR
FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN, THE CITY OF NEW YORK, OVER ANY SUIT, ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY, THE NOTE PURCHASE AGREEMENT OR THE NOTES.
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE GUARANTOR IRREVOCABLY WAIVES AND AGREES NOT
TO ASSERT, BY WAY OF MOTION, AS A DEFENSE OR OTHERWISE, ANY CLAIM THAT IT IS NOT SUBJECT TO THE
JURISDICTION OF ANY SUCH COURT, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF
THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY
SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM. THE GUARANTOR CONSENTS TO PROCESS BEING SERVED BY OR ON BEHALF OF ANY HOLDER OF NOTES IN
ANY SUIT, ACTION OR PROCEEDING OF THE NATURE REFERRED TO IN THIS SECTION 10 BY MAILING A COPY
THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE
PREPAID, RETURN RECEIPT REQUESTED, TO IT AT ITS ADDRESS SPECIFIED IN SECTION 16 OR AT SUCH OTHER
ADDRESS OF WHICH SUCH HOLDER SHALL THEN HAVE BEEN NOTIFIED PURSUANT TO SAID SECTION. THE GUARANTOR
AGREES THAT SUCH SERVICE UPON RECEIPT (I)&nbsp;SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF
PROCESS UPON IT IN ANY SUCH SUIT, ACTION OR PROCEEDING AND (II)&nbsp;SHALL, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, BE TAKEN AND HELD TO BE VALID PERSONAL SERVICE UPON AND PERSONAL
DELIVERY TO IT. NOTICES HEREUNDER SHALL BE CONCLUSIVELY PRESUMED RECEIVED AS EVIDENCED BY A
DELIVERY RECEIPT FURNISHED BY THE UNITED STATES POSTAL SERVICE OR ANY REPUTABLE COMMERCIAL DELIVERY
SERVICE. NOTHING IN THIS SECTION 10 SHALL AFFECT THE RIGHT OF ANY HOLDER OF A NOTE TO SERVE
PROCESS IN ANY MANNER PERMITTED BY LAW, OR LIMIT ANY RIGHT THAT THE HOLDERS OF ANY OF THE NOTES MAY
HAVE TO BRING PROCEEDINGS AGAINST THE GUARANTOR</B>
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>IN THE COURTS OF ANY APPROPRIATE JURISDICTION OR TO ENFORCE IN ANY LAWFUL MANNER A JUDGMENT
OBTAINED IN ONE JURISDICTION IN ANY OTHER JURISDICTION.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THE GUARANTOR, AND BY ITS ACCEPTANCE HEREOF, EACH OF THE NOTEHOLDERS, IRREVOCABLY WAIVES, TO
THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY LITIGATION IN ANY COURT WITH RESPECT
TO, IN CONNECTION WITH, OR ARISING OUT OF THIS GUARANTY, THE NOTE PURCHASE AGREEMENT AND THE NOTES,
OR THE VALIDITY, PROTECTION, INTERPRETATION, COLLECTION OR ENFORCEMENT HEREOF OR THEREOF.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11. FURTHER ASSURANCES.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guarantor agrees that it will from time to time, at the request of any Noteholder, do all
such things and execute all such documents as such Noteholder may consider necessary or desirable
to give full effect to this Guaranty and to perfect and preserve the rights and powers of all
Noteholders hereunder. The Guarantor acknowledges and confirms that the Guarantor itself has
established its own adequate means of obtaining from the Company on a continuing basis all
information desired by the Guarantor concerning the financial condition of the Company and that the
Guarantor will look to the Company and not to the Noteholders in order for the Guarantor to keep
adequately informed of changes in the Company&#146;s financial condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>12. SEVERABILITY.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any provision of this Guaranty which is prohibited, unenforceable or not authorized in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition,
unenforceability or nonauthorization without invalidating the remaining provisions hereof or
affecting the validity, enforceability or legality of such provision in any other jurisdiction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>13. SECTION HEADINGS.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section headings are for convenience only and shall not affect the interpretation of this
Guaranty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>14. LIMITATION OF LIABILITY.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NO NOTEHOLDER SHALL HAVE ANY LIABILITY WITH RESPECT TO, AND THE GUARANTOR HEREBY WAIVES,
RELEASES AND AGREES NOT TO SUE FOR, (a)&nbsp;ANY LOSS OR DAMAGE SUSTAINED BY THE GUARANTOR THAT MAY
OCCUR AS A RESULT OF, IN CONNECTION WITH, OR THAT IS IN ANY WAY RELATED TO, ANY ACT OR FAILURE TO
ACT REFERRED TO IN SECTION 2.3 OR SECTION 2.4 OR (b)&nbsp;ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES
SUFFERED BY THE GUARANTOR IN CONNECTION WITH ANY CLAIM RELATED TO THIS GUARANTY.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>15. ENTIRE AGREEMENT.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Guaranty, together with the Note Purchase Agreement and the Notes, embodies the entire
agreement between the Guarantor and the Noteholders relating to the subject matter hereof
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and supersedes all prior agreements, representations and understandings, if any, relating to
the subject matter hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>16. COMMUNICATIONS.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All notices and other communications to the Noteholders or the Guarantor hereunder shall be in
writing, shall be delivered in the manner and with the effect, as provided by the Note Purchase
Agreement, and shall be addressed (a)&nbsp;to the Guarantor as set forth in <U>Annex A</U> hereto and
(b)&nbsp;to the Noteholders as set forth in the Note Purchase Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>17. DUPLICATE ORIGINALS.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Two or more duplicate counterpart originals hereof may be signed by the parties, each of which
shall be an original but all of which together shall constitute one and the same instrument.
Delivery of any executed signature page to this Guaranty by the Guarantor by facsimile transmission
shall be as effective as delivery of a manually executed copy of this Guaranty by the Guarantor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>18. COMPROMISES AND ARRANGEMENTS.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything contained in the certificate of incorporation or other charter
documents of the Guarantor, the Guarantor acknowledges and agrees that no Noteholder is waiving any
of its rights and remedies under this Guaranty, including, without limitation, the right to file a
bankruptcy petition or petitions under the United States Bankruptcy Code (11 U.S.C. &#167; 101 et seq.)
or the right to take advantage of any other bankruptcy or insolvency law of any jurisdiction, and
the right to settle its claims in such fashion as it shall determine, regardless of the settlement
or other arrangements that may be made by any stockholder or other creditor.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;</B><B><I>Remainder of page intentionally left blank. Next page is signature page.</I></B><B>&#093;</B>
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF</B>, the Guarantor has caused this Guaranty to be duly executed and delivered
by its officer thereunto duly authorized as of the date first above written.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>THE FOLGERS COFFEE COMPANY</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:<BR>
Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Mark R. Belgya
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Mark R. Belgya
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President and Chief Financial Officer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Annex A</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Notice Address of Guarantor</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Folgers Coffee Company<BR>
C/O The J.M. Smucker Company<BR>
One Strawberry Lane<BR>
Orrville, Ohio 44667<BR>
Attention: M. Ann Harlan, Vice President, General Counsel and Secretary<BR>
Telecopier: (330)&nbsp;684-3026

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><I>With copy to</I></U>:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Jones Day<BR>
901 Lakeside Avenue<BR>
Cleveland, Ohio 44114<BR>
Attention: Rachel L. Rawson<BR>
Telecopier: (216)&nbsp;579-0212

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Annex A-1
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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