Document:

EXHIBIT
      10.6

    

    

    

    

    

    

    

    

    

    
      
        

      

    

    

    
 

    BALCHEM
      MINERALS CORPORATION

    

    TO

    

    BANK
      OF
      AMERICA, N.A.,

    AS
      HOLDER

    

    

    

    
      	 	 	 
	 	
               

              GUARANTY

               

            	 

    

    

    

    

    DATED
      FEBRUARY 6, 2006

    

    
      
        

      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    GUARANTY

    

    THIS
      GUARANTY dated February 6, 2005 (the “Guaranty”) from BALCHEM
      MINERALS CORPORATION,
      a
      Delaware corporation having its principal office at c/o Balchem Corporation,
      P.
      O. Box
      600, 52 Sunrise Park Road, New Hampton, New York 10958
      (the
“Guarantor”) to BANK OF AMERICA, N.A. (successor by merger to Fleet National
      Bank), a national banking association organized and existing under the laws
      of
      the United States and having an office at Peter Kiernan Plaza, Albany, New
      York
      12207 (the “Holder”);

    

    W
      I T N E S S E T H:

    

    WHEREAS,
      the Holder has extended a certain revolving line of credit loan to Balchem
      Corporation
      (the
“Company”) (the “Line of Credit Loan”) the repayment of which is evidenced by an
      amended and restated promissory note (revolving line of credit) dated the date
      hereof in the principal amount of $3,000,000.00 (as modified or supplemented
      or
      extended from time to time, the “Line of Credit Loan Note”); and

    

    WHEREAS,
      the Holder has extended a certain term loan to the Company (the “Term Loan” and
      collectively with the Line of Credit Loan, the “Loans”) the repayment of which
      is evidenced by a promissory note dated the date hereof in the principal amount
      of $10,000,000.00 (as modified or supplemented or extended from time to time,
      the “Term Loan Note” and collectively with the Line of Credit Loan Note, the
“Notes”); and

    

    

    WHEREAS,
      the Loans are being made pursuant to the provisions, terms and conditions of
      an
      amended and restated loan agreement dated the date hereof (as modified or
      supplemented from time to time, the “Loan Agreement”) by and between the Company
      and the Holder; and

    

    WHEREAS,
      the proceeds of the Loans will be made available to the Company upon the terms
      and conditions set forth in the Loan Agreement; and

    

    WHEREAS,
      in connection with the making of the Loans, the Company has offered to have
      the
      Guarantor guaranty repayment of the Notes as set forth herein; and

    

    WHEREAS,
      the Guarantor specifically approves the terms of the Notes and the other
      Financing Documents; and

    

    WHEREAS,
      the Guarantor is willing to enter into this Guaranty in order to induce the
      Holder to make the Loans and thereby achieve interest cost and other savings
      to
      the Company;

    

    NOW,
      THEREFORE, for good and valuable consideration, the receipt whereof is hereby
      acknowledged, the parties agree as follows:

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
      I

    

    REPRESENTATIONS
      AND WARRANTIES

    OF
      THE
      GUARANTOR

    

    The
      Guarantor does hereby represent and warrant to the Holder that:

    

    SECTION
      1.1. AUTHORITY OF THE GUARANTOR. The
      Guarantor represents and warrants that it is a corporation duly incorporated,
      validly existing and in good standing under the laws of the State of Delaware,
      possesses full corporate power and corporate capacity to consummate the
      transactions contemplated hereby and is authorized to conduct business in all
      jurisdictions wherein the nature of its activities requires such except where
      the failure to do so would not have a material adverse effect upon the
      Guarantor.

    

    SECTION
      1.2. NO VIOLATION OF RESTRICTIONS. The
      Guaranty and all other documents to be executed by the Guarantor in connection
      therewith, when executed and delivered by the respective parties thereto, will
      constitute valid and binding obligations of the Guarantor. The execution and
      delivery by the Guarantor of the Financing Documents to which it is a party
      and
      the performance thereof by the Guarantor (1) have been authorized by all
      necessary corporate action and (2) do not and will not conflict with, or result
      in any breach of, or constitute a default under the Guarantor’s articles of
      incorporation or by-laws or any indenture, mortgage, deed of trust, bank loan
      or
      credit agreement or any other agreement or instrument to which the Guarantor
      is
      a party or by which the Guarantor or any of its Property may be bound for which
      a valid consent has not been secured except where the failure to do so would
      not
      have a material adverse effect upon the Guarantor, or result in the creation
      of
      any Lien (other than that created by the Financing Documents) upon or with
      respect to any Property of the Guarantor.

    

    SECTION
      1.3. GOVERNMENTAL CONSENT. No
      approval or other action by any Governmental Authority is required in connection
      with the execution or performance by the Guarantor of the Guaranty.

    

    SECTION
      1.4. PENDING LITIGATION. As
      of the
      date hereof, there are no actions, suits or proceedings at law or in equity,
      or
      before or by any Governmental Authority, pending or, to the knowledge of the
      Guarantor, threatened against or affecting the Guarantor which are reasonably
      likely to materially adversely affect the financial condition of the Guarantor
      and of the Company taken as a whole or involving the validity or enforceability
      of the Financing Documents to which it is a party or the priority of the Liens
      thereof, and to the Guarantor’s knowledge it is not in default with respect to
      any material order, writ, judgment, decree or demand of any court or any
      Governmental Authority.

    

    SECTION
      1.5. NO DEFAULTS. No event has occurred and no condition exists which, upon
      the
      execution of this Guaranty, would constitute an Event of Default under Article
      III hereof. 

    

    SECTION
      1.6. TAXES. All
      material Federal, state, county, municipal and city income and other tax returns
      and other reports and documents required to have been filed by the Guarantor
      have been filed and the Guarantor has paid all fees and taxes indicated as
      due
      pursuant to such returns, reports and documents or pursuant to any assessments
      received by the Guarantor, and the Guarantor knows of no basis for any
      additional material assessment in respect of any such taxes which has not been
      or will not be reserved for in accordance with GAAP.

    
      
         

      

      
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    ARTICLE
      II

    

    COVENANTS
      AND AGREEMENTS

    

    SECTION
      2.1. GUARANTY OF PAYMENT. (A) The Guarantor hereby irrevocably and
      unconditionally guarantees to the Holder full and prompt payment of moneys
      sufficient to pay, or to provide for the payment of, the outstanding principal
      balance of the Notes together with premium, if any, thereon and accrued and
      unpaid interest thereon (the “Guaranteed Amount”). The Guarantor hereby
      irrevocably and unconditionally agrees that, upon the occurrence of an Event
      of
      Default and the acceleration of the principal balance of either or both of
      the
      Notes then outstanding by the Holder, the Guarantor will, upon written demand
      by
      the Holder, promptly pay such Guaranteed Amount.

    

    (B)     All
      payments by the Guarantor shall be paid in lawful money of the United States
      of
      America in immediately available funds.

    

    (C)     Each
      and
      every default in payment of the principal of or interest on the Notes shall
      give
      rise to a separate cause of action hereunder, and separate suits may be brought
      hereunder by the Holder as each cause of action arises.

    

    (D)     The
      Guarantor shall pay to the Holder all reasonable costs and expenses (including
      reasonable legal fees) incurred by the Holder in the protection of any of its
      rights or in the pursuance of any of its remedies in respect of this
      Guaranty.

    

    SECTION
      2.2. OBLIGATIONS UNCONDITIONAL. The obligations of the Guarantor under this
      Guaranty shall be absolute and unconditional and shall remain in full force
      and
      effect and, to the extent permitted by law, such obligations shall not be
      affected, modified or impaired by any state of facts or the happening from
      time
      to time of any event including, without limitation, any of the following,
      whether or not with notice to or the consent of the Guarantor:

    

    (A)     the
      invalidity, irregularity, illegality or unenforceability of, or any defect
      in,
      (1) the Notes, (2) the other Financing Documents, or (3) any collateral security
      for any thereof;

    

    (B)     any
      present or future law or order of any government (de jure
      or
de facto)
      or of
      any agency thereof purporting to reduce, amend or otherwise affect the Notes
      or
      any other obligation of the Company or any other obligor or to vary any terms
      of
      payment;

    

    (C)     any
      claim
      of immunity on behalf of the Company or any other obligor or with respect to
      any
      Property of the Company or any other obligor;

    

    (D)     the
      waiver, compromise, settlement, release or termination of any or all of the
      obligations, covenants or agreements of (1) the Company under the Notes or
      any
      of the other Financing Documents, (2) a co-guarantor of the Notes;

    

    (E)     the
      failure
      to give notice to the Guarantor of the occurrence of an Event of Default under
      the Financing Documents;

    

    (F)     the
      transfer,
      assignment or mortgaging, or the purported or attempted transfer, assignment
      or
      mortgaging, of all or any part of the interest of the Company in the Collateral,
      or any failure of or defect in the title with respect to the Company’s interest
      in the Collateral;

    
      
         

      

      
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    (G)     the
      release, sale, exchange, surrender or other change in any security for payment
      of the Notes;

    

    (H)     the
      extension of the time for payment of any principal of or interest or premium
      on
      the Notes owing or payable on such Notes or under this Guaranty or of the time
      for performance of any other obligations, covenants or agreements under or
      arising out of the other Financing Documents;

    

    (I)     the
      modification or amendment (whether material or otherwise) of any obligation,
      covenant or agreement set forth in the Notes or any other Financing
      Document;

    

    (J)     the
      taking of, or the omission to take, any of the actions referred to in the
      Financing Documents;

    

    (K)     any
      failure, omission or delay on the part of the Holder or any other Person to
      enforce, assert or exercise any right, power or remedy conferred on the Holder
      or such other Person in this Guaranty or the other Financing
      Documents;

    

    (L)     the
      voluntary or involuntary liquidation, dissolution, sale or other disposition
      of
      all or substantially all the assets, marshaling of assets and liabilities,
      receivership, insolvency, bankruptcy, assignment for the benefit of creditors,
      reorganization, arrangement, composition with creditors or readjustment of,
      or
      other similar proceedings affecting the Company or any of the assets of any
      of
      them, or any contest of the validity of the Financing Documents, in any such
      proceedings;

    

    (M)     any
      event or
      action that would, in the absence of this Section 2.2, result in the release
      or
      discharge of the Guarantor from the performance or observance of any obligation,
      covenant or agreement contained in this Guaranty;

    

    (N)     the
      default or failure of the Guarantor fully to perform any of its obligations
      set
      forth in this Guaranty; or

    

    (O)     any
      other
      circumstances which might otherwise constitute a legal or equitable discharge
      or
      defense of a surety or a guarantor.

    

    SECTION
      2.3. WAIVERS BY THE GUARANTOR. The Guarantor hereby waives with respect to
      the
      Notes, the other Financing Documents, the Guaranty and the indebtedness
      evidenced thereby the following: diligence; presentment; demand for payment;
      any
      right to require a proceeding first against the Company or any other such
      Person; protest; notice of dishonor or nonpayment of any such liabilities and
      any other notice and all demands whatsoever. The Guarantor hereby waives notice
      from the Holder and the Company (A) of the execution and delivery of the Notes,
      and (B) of acceptance of, or notice and proof of reliance on, the benefits
      of
      this Guaranty.

    

    SECTION
      2.4. DISCHARGE OF THE GUARANTOR’S OBLIGATIONS AND TERMINATION OF THIS GUARANTY.
      This Guaranty shall terminate and the obligations of the Guarantor created
      hereunder shall be discharged when all amounts due under the Financing Documents
      have been paid in full except as set forth below. On the date of such discharge,
      the Guarantor shall be released from any and all conditions, terms, covenants
      or
      restrictions created or placed upon them by this Guaranty and the Guarantor
      shall not have any further obligation or liability hereunder.

    

    SECTION
      2.5. OTHER SECURITY. The Holder may pursue its rights and remedies under this
      Guaranty notwithstanding (A) any other guaranty of or security for the Notes
      or
      the obligations or liabilities of the Company under the other Financing
      Documents, and (B) any action taken or omitted to be taken by,
      any

    
      
         

      

      
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    other
      Holder or any other Person to enforce any of the rights or remedies under such
      other guaranty or with respect to any other security.

    

    SECTION
      2.6. NO SET-OFF BY THE GUARANTOR. No set-off, counterclaim, reduction or
      diminution of an obligation, or any defense of any kind or nature (other than
      payment in full of the Guaranteed Amount) which the Guarantor has or may have
      with respect to a claim under this Guaranty, shall be available hereunder to
      the
      Guarantor against the Holder.

    

    SECTION
      2.7. NATURE OF GUARANTY. (A) The Guaranty is a guaranty of payment and not
      of
      collection, and the Guarantor hereby waives any right to require that any action
      be brought against any other Person or to require that resort be had to any
      security or to any balance of any fund or credit held by the Holder in favor
      of
      the Company or any other Person prior to the Holder proceeding under the
      Guaranty. If at any time any payment of the principal of, premium, if any,
      on or
      interest on the Notes or any other amount payable by the Company and guaranteed
      by the Guarantor pursuant to Section 2.1 hereof is rescinded or is otherwise
      required to be restored or returned upon the insolvency, bankruptcy or
      reorganization of the Company or otherwise, the Guarantor’s obligations
      hereunder with respect to such payment shall be reinstated as though such
      payment had been due but not made at such time.

    

    (B)     All
      of the
      rights and remedies of this Guaranty shall inure to the benefit of the
      Holder.

    

    SECTION
      2.8. SUBORDINATION OF DEBT. During the term of the Guaranty, the Guarantor
      agrees with the Holder that upon the occurrence and continuance of an Event
      of
      Default if the Holder so requests, any and all indebtedness of the Company
      owed
      to the Guarantor shall be collected, enforced and received by the Guarantor
      as
      trustee for the Holder and paid over to the Holder on account of the
      indebtedness of the Company to the Holder, but without reducing or affecting
      in
      any manner the liability of the Guarantor under the other provisions of this
      Guaranty except to the extent the principal amount of such outstanding
      indebtedness shall have been reduced by such payment.

    
      
         

      

      
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    ARTICLE
      III

    

    EVENTS
      OF
      DEFAULT

    

    

    SECTION
      3.1. DEFAULT REMEDIES. If an Event of Default exists, the Holder may proceed
      to
      enforce the provisions hereof and to exercise any other rights, powers and
      remedies available to the Holder. The Holder, in its sole discretion, shall
      have
      the right to proceed first and directly against the Guarantor under this
      Guaranty without proceeding against or exhausting any other remedies which
      it
      may have and without resorting to any other security held by the
      Holder.

    

    SECTION
      3.2. REMEDIES; WAIVER AND NOTICE. (A) No remedy herein conferred upon or
      reserved to the Holder is intended to be exclusive of any other available remedy
      or remedies, but each and every such remedy shall be cumulative and shall be
      in
      addition to every other remedy given under this Guaranty or now or hereafter
      existing at law or in equity or by statute.

    

    (B)     No
      delay
      or omission to exercise any right or power accruing upon the occurrence of
      any
      Event of Default hereunder shall impair any such right or power or shall be
      construed to be a waiver thereof, but any such right or power may be exercised
      from time to time and as often as may be deemed expedient.

    

    (C)     In
      order to
      entitle the Holder to exercise any remedy reserved to it in this Guaranty,
      it
      shall not be necessary to give any notice, other than such notice as may be
      expressly required in this Guaranty.

    

    (D)     In
      the
      event any provision contained in this Guaranty should be breached by any party
      and thereafter duly waived by the other party so empowered to act, such waiver
      shall be limited to the particular breach so waived and shall not be deemed
      to
      waive any other breach hereunder.

    

    (E)     No
      waiver,
      amendment, release or modification of this Guaranty shall be established by
      conduct, custom or course of dealing.

    

    SECTION
      3.3. RIGHT OF SET-OFF.  The
      guarantor hereby grants to the Holder, a continuing lien, security interest
      and
      right of setoff as security for all liabilities and obligations to the Holder,
      whether now existing or hereafter arising, upon and against all deposits,
      credits, collateral and property, now or hereafter in the possession, custody,
      safekeeping or control of the Holder or any entity under the control of Bank
      of
      America Corporation and its successors and assigns, or in transit to any of
      them. At any time, without demand or notice (any such notice being expressly
      waived by the Guarantor), the Holder may set off the same or any part thereof
      and apply the same to any liability or obligation of the Guarantor even though
      unmatured and regardless of the adequacy of any other collateral securing the
      Notes. ANY AND ALL RIGHTS TO REQUIRE THE HOLDER TO EXERCISE ITS RIGHTS OR
      REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE NOTES, PRIOR
      TO
      EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER
      PROPERTY OF THE GUARANTOR, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY
      WAIVED.

    

    SECTION
      3.4. EXPENSES INCURRED IN CONNECTION WITH ENFORCEMENT. The
      Guarantor shall pay on demand all reasonable expenses of the Holder in
      connection with the preparation, administration, default, collection, waiver
      or
      amendment of loan terms, or in connection with the Holder’s exercise,
      preservation or enforcement of any of its rights, remedies or options hereunder,
      including, without limitation, reasonable fees of outside legal counsel or
      the
      allocated costs of in-house legal counsel, accounting, consulting, brokerage
      or
      other similar professional fees or expenses, and any reasonable fees or expenses
      associated with travel or other costs relating to any appraisals or examinations
      conducted in connection with the Loans or any collateral therefor, and the
      amount of all such expenses shall, until paid,

    
      
         

      

      
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    bear
      interest at the rate applicable to principal hereunder (including any default
      rate) and be an obligation secured by any collateral.

    
      
         

      

      
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    ARTICLE
      IV

    

    INTERPRETATION
      OF GUARANTY

    

    

    SECTION
      4.1. ACCOUNTING PRINCIPLES. Where the character or amount of any asset or
      liability or item of income or expense is required to be determined or
      consolidated or other accounting computation is required to be made for the
      purposes of this Guaranty, this shall be done in accordance with generally
      accepted accounting principles at the time in effect, to the extent applicable,
      except where such principles are inconsistent with the requirements of this
      Guaranty.

    

    SECTION
      4.2. DIRECTLY OR INDIRECTLY. Where any provision in this Guaranty refers to
      action to be taken by any Person, or which such Person is prohibited from
      taking, such provision shall be applicable whether such action is taken directly
      or indirectly by such Person.

    

    SECTION
      4.3. GOVERNING LAW. This Guaranty and the rights and obligations of the parties
      hereunder shall be construed and interpreted in accordance with the laws of
      the
      State of New York (the “Governing State”) (excluding the laws applicable to
      conflicts or choice of law).

    

    THE
      GUARANTOR AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS GUARANTY MAY BE
      BROUGHT IN THE COURTS OF THE GOVERNING STATE OR ANY FEDERAL COURT SITTING
      THEREIN AND CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURT AND SERVICE
      OF PROCESS IN ANY SUCH SUIT BEING MADE UPON THE GUARANTOR BY MAIL AT THE ADDRESS
      SET FORTH HEREIN. THE GUARANTOR HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW
      OR
      HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH
      SUIT
      IS BROUGHT IN AN INCONVENIENT FORUM.

    

    SECTION
      4.4. DEFINITIONS. All defined terms used herein and not otherwise defined herein
      being used herein with the same meanings as set forth in the Loan Agreement.
      As
      used herein, all words of masculine gender shall mean and include correlative
      words of feminine and neuter genders.

    

    
      
         

      

      
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    ARTICLE
      V

    

    MISCELLANEOUS

    

    

    SECTION
      5.1. OBLIGATIONS ARISE ON DELIVERY OF THE NOTES. The obligations of the
      Guarantor hereunder shall arise absolutely and unconditionally when the Notes
      shall have been executed and delivered by the Company to the
      Holder.

    

    SECTION
      5.2. SURVIVAL. All warranties, representations, and covenants made by the
      Guarantor herein shall be deemed to have been relied upon by the Holder and
      shall survive the delivery to the Holder of this Guaranty regardless of any
      investigation made by the Holder.

    

    SECTION
      5.3. SUCCESSORS AND ASSIGNS. This Guaranty shall be binding upon the successors
      and permitted assigns of the Guarantor. The provisions of this Guaranty are
      intended to be for the benefit of the Holder, its successors and
      assigns.

    

    SECTION
      5.4. NOTICES. (A) All notices, certificates and other communications under
      this
      Guaranty shall be in writing and shall be sufficiently given and shall be deemed
      given when: (1) delivered to the applicable address stated in subsection (B)
      hereof by registered or certified mail, return receipt requested or by such
      other means as shall provide the sender with documentary evidence of such
      delivery, or (2) delivery is refused by the Guarantor or the Holder, as the
      case
      may be, as evidenced by the affidavit of the Person who attempted to effect
      such
      delivery;

    

    (B)     The
      addresses
      to which communications under this Guaranty shall be delivered are as
      follows:

    

    TO
      THE
      GUARANTOR:

    

    Balchem
      Minerals Corporation

    c/o
      Balchem Corporation

    P.O.
      Box
      600

    52
      Sunrise Park Road

    New
      Hampton, New York 10958

    Attention:
      Dino A. Rossi, President

    

    

    TO
      THE
      HOLDER:

    

    Bank
      of
      America, N.A.

    Peter
      D.
      Kiernan Plaza

    Albany,
      New York 12207

    Attention:
      Corporate Banking Division

    

    WITH
      A
      COPY TO:

    

    Lemery
      Greisler LLC

    10
      Railroad Place

    Saratoga
      Springs, New York 12866

    Attention:
      James A. Carminucci, Esq.

    
      
         

      

      
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    (C)     The
      Guarantor and the Holder may by notice given hereunder designate any further
      or
      different addresses to which subsequent notices, certificates and other
      communications shall be sent.

    

    SECTION
      5.5. ENTIRE UNDERSTANDING; COUNTERPARTS. This Guaranty constitutes the entire
      agreement and supersedes all prior agreements and understandings, both written
      and oral, among the parties with respect to the subject matter hereof and may
      be
      executed simultaneously in several counterparts, each of which shall be deemed
      an original, but all of which together shall constitute one and the same
      instrument.

    

    SECTION
      5.6. AMENDMENTS. No amendment, change, modification, alteration or termination
      of this Guaranty shall be made except upon the written consent of the Guarantor
      and the Holder.

    

    SECTION
      5.7. PARTIAL INVALIDITY. The invalidity or unenforceability of any one or more
      phrases, sentences, clauses or sections in this Guaranty shall not affect the
      validity or enforceability of the remaining portions of this Guaranty or any
      part thereof.

    

    SECTION
      5.8. SECTION HEADINGS NOT CONTROLLING. The headings of the several sections
      of
      this Guaranty have been prepared for convenience of reference only and shall
      not
      control, affect the meaning or be taken as an interpretation of any provision
      of
      this Guaranty.

    

    SECTION
      5.9. JURY TRIAL WAIVER. THE
      GUARANTOR AND THE HOLDER MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND
      INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED
      HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS GUARANTY OR ANY COURSE
      OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR
      ACTIONS OF ANY PARTY, INCLUDING, WITHOUT LIMITATION, ANY COURSE OF CONDUCT,
      COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF THE HOLDER RELATING TO THE
      ADMINISTRATION OF THE LOANS OR ENFORCEMENT OF THE NOTES, AND AGREE THAT NEITHER
      PARTY WILL SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH
      A
      JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. EXCEPT AS PROHIBITED BY LAW, THE
      GUARANTOR HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY
      LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY
      DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. THE GUARANTOR CERTIFIES
      THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE HOLDER HAS REPRESENTED,
      EXPRESSLY OR OTHERWISE, THAT THE HOLDER WOULD NOT, IN THE EVENT OF LITIGATION,
      SEEK TO ENFORCE THE FOREGOING WAIVER. THIS WAIVER CONSTITUTES A MATERIAL
      INDUCEMENT FOR THE HOLDER TO ACCEPT THE GUARANTY AND MAKE THE
      LOANS.

    

    

    
      
         

      

      
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    IN
      WITNESS WHEREOF, the Guarantor has executed this Guaranty as of the day and
      year
      first above written.

    

     

    

    
      	 	
              BALCHEM
                MINERALS CORPORATION

            
	 	 	 
	 	 	 
	 	
              By:
                

            	
              /s/
                Dino A. Rossi

            
	 	 	
              Dino
                A. Rossi, President

            

    

    

    Accepted:

    

    BANK
      OF
      AMERICA, N.A., as Holder

    

    

    
      	
              By:

            	
              /s/
                Karen D. Finnerty

            	 
	 	
              Karen
                D. Finnerty, Vice President

            	 

    

    

     

    
      	STATE OF NEW YORK  	)

      	 	)ss.:

      	
              COUNTY
                OF ORANGE

            	
              )

            

    

    

    On
      the
      6th day of February, in the year 2006 before me personally came DINO
      A. ROSSI,
      to me
      known, who, being by me duly sworn, did depose and say that he/she/they
      reside(s) in New York; that he/she/they is(are) the President of BALCHEM
      MINERALS CORPORATION, the corporation described in and which executed the above
      instrument; and that he/she/they signed his/her/their name(s) thereto by
      authority of the board of directors of said corporation.

    

    

    
      	 	
              /s/
                Matthew D. Houston

            
	 	
              Notary
                Public, State of New Yorksec document

                                                                   Exhibit 10.1

                            SENDTEC ACQUISITION CORP.
                         877 Executive Center Drive West
                                    Suite 300
                          St. Petersburg, Florida 33702

                            RELATIONSERVE MEDIA, INC.
                            6700 North Andrews Avenue
                         Fort Lauderdale, Florida 33309
                                February 3, 2006

To the Purchasers Under
The Securities Purchase Agreement
Dated as of October 31, 2005

Re:  Securities Purchase Agreement dated as of October 31, 2005

Ladies and Gentlemen:

Reference is made to the Securities Purchase Agreement (the "PURCHASE
AGREEMENT"), dated as of October 31, 2005, among SendTec Acquisition Corp., a
Delaware corporation ("STAC"), RelationServe Media, Inc., a Delaware corporation
(the "COMPANY"), and each purchaser identified on the signature pages thereto
(each, including its successors and assigns, a "PURCHASER" and collectively the
"PURCHASERS") and Christiana Corporate Services, Inc., a Delaware corporation,
in its capacity as administrative agent for the Purchasers (together with its
successors and assigns in such capacity, the "Agent"), and the transactions
contemplated thereby. Capitalized terms used in and not otherwise defined in
this letter shall have the meanings ascribed to them in the Purchase Agreement.

In connection with and effective upon the closing of the Consolidation to be
effected today pursuant to the Purchase Agreement, STAC, the Company and the
Purchasers agree as follows:

1. STAC has not and will not satisfy the covenants set forth in Section 4.21(b)
of the Purchase Agreement to have minimum EBITDA for the fourth quarter of 2005
and fiscal year 2005 of $1,725,000 and $5,200,000 and therefore, the minimum
EBITDA for the fourth quarter shall be $650,000 and for fiscal year 2005 shall
be $4,350,000. Further, following the closing of the Consolidation, the
financial covenants under Section 4.21 will be of no further force and effect.

2. The Company financial covenant targets set forth in Schedules 4.22(a), (b)
and (c) of the Purchase Agreement are restated in their entirety as set forth in
the amended Schedules 4.22(a), (b) and (c) attached to this letter agreement.

3. Sunrise Equity Partners, L.P., has indicated its interest in a subscription
and purchase of $750,000.00 of Company Common Stock (500,000 shares at $1.50 per
share) to close contemporaneously with the Consolidation ("Investment") pursuant
to a stock purchase agreement, including the provision of rights to "piggy-back"
registration of such Company Common Stock to be effected upon the filing of the
Registration Statement. The use of proceeds from the Investment will be to
repurchase approximately an equal amount of shares owned by Scott Hirsch or his
affiliates as required in the Consolidation. The Required Purchasers hereby
consent to the Investment upon the terms and conditions described herein with
such immaterial changes and revisions as the officer executing the same shall
determine, PROVIDED, HOWEVER, that there shall be no change in the number of
shares or price of the Investment. The Required Purchasers also waive compliance
with the provisions of Section 4.15, "Participation in Future Financing," and
Section 4.16, "Subsequent Equity Sales" solely with respect to the Investment.

4. In addition, for the absence of doubt and for the purpose of satisfaction of
any covenants, conditions, or restrictions in or relating to the Purchase
Agreement, or applicable to the Company or STAC, as now in effect or as may
hereafter be modified or amended, the amount of any non-cash charges associated
with the Investment shall be included (added back) in any calculations of such
amounts.

5. (a) In consideration of the Purchasers (i) forbearing to call a covenant
default or breach of Section 4.21(b) of the Purchase Agreement, (ii) agreeing to
amend Schedules 4.22(a), (b) and (c) of the Purchase Agreement and (iii)
consenting to the Investment and waiving the provisions of Sections 4.15 and
4.16, the Company shall issue 525,000 shares (the "Shares") of its common stock,
par value $0.001 per share (the "Common Stock"), pro rata to the Purchasers in
accordance with their respective ownership of the principal amounts of the STAC
Debentures, at the closing of the Consolidation being effected today, as set
forth next to their name on the signature page hereto.

      (b) Certificates for the Shares, duly registered in the names of the
Purchasers and containing the necessary restrictive legends, shall be delivered
to Morrison & Foerster LLP by the close of business on the Consolidation Date
for delivery to the respective Purchasers.

      (c) The Shares shall be included in the "Registrable Securities" as
defined in and pursuant to the Company Registration Rights Agreement, the form
of which is attached as Exhibit D to the Purchase Agreement, and the final
version of which shall be executed and delivered in connection with the closing
of the Consolidation.

6. Except as specifically set forth in this letter agreement, the covenants,
terms and provisions of the Purchase Agreement and the other Transaction
Documents remain in full force and effect and the Purchasers have not waived, or
agreed to the amendment of, any other provisions thereof. In no event shall this
letter, any other action undertaken pursuant to the Purchase Agreement or the
other Transaction Documents, or any inaction by Agent or the Purchasers
constitute (i) a waiver, estoppel or agreement to forbear (except as
specifically set forth herein) with respect to Agent's and the Purchasers'

rights, defenses, remedies, or privileges at law or in equity under the Purchase
Agreement, the other Transaction Documents or otherwise; or (ii) a waiver of any
Default or Event of Default under the STAC Debentures. No delay by Agent or the
Purchaser in exercising any of their respective rights or remedies shall operate
as a waiver of any rights or remedies that Agent or the Purchasers may have.

      This letter agreement shall be effective upon execution and delivery
thereof by STAC, the Company and the holders of 75% of the principal amount of
the Debentures.

                                SENDTEC ACQUISITION CORP.

                                By: /s/ Paul Soltoff
                                    --------------------------------------------
                                   Name: Paul Soltoff
                                   Title: CEO

                                RELATIONSERVE MEDIA, INC.

                                By: /s/ Shawn McNamara
                                    --------------------------------------------
                                   Name: Shawn McNamara
                                   Title: CEO

AGREED AND ACCEPTED                     SHARES OF RSVM COMMON TO BE RECEIVED

LB I GROUP INC.                         150,215 shares
($10 million principal amount)

By: /s/ Eric C. Salzman
    -----------------------------------
    Name: Eric C. Salzman
    Title: SVP 3 Feb. 2006

ALEXANDRA GLOBAL MASTER FUND, LTD.        75,107 shares
($5 million principal amount)

By:
    -----------------------------------
    Name:
    Title:

CAMOFI MASTER LDC                         30,043 shares
($2 million principal amount)

By: /s/
    -----------------------------------
    Name:
    Title: Director

JGB CAPITAL, L.P.                         11,266 shares
($750 million principal amount)

By: JGB Management Inc, as General Partner

By: /s/ Brett Cohen
    -----------------------------------
    Name: Brett Cohen
    Title: President JGB Management, Inc., as General Partner

MELLON HBV MASTER U.S. EVENT
DRIVEN FUND L.P.                         22,532 shares
($1.5 million principal amount)

By: /s/
    -----------------------------------
    Name:
    Title: Managing Director

MELLON HBV MASTER GLOBAL EVENT            67,597 shares
    DRIVEN FUND LP
($4.5 million principal amount)

By: /s/
    -----------------------------------
    Name:
    Title: Managing Director

PALISADES MASTER FUND LP                  60,086 shares
($4 million principal amount)

By: /s/  Andrew Reckles
    -----------------------------------
    Name: Andrew Reckles
    Title: General Partner

PORTSIDE GROWTH AND OPPORTUNITY FUND      30,043 shares
($2 million principal amount)

By: /s/
    -----------------------------------
    Name:
    Title:

By:                                        31,004 shares
    -----------------------------------
    Mark Salter

     ($200,000 principal amount)

SDS CAPITAL GROUP                         60,086 shares
SPC LTD.

($4 million principal amount)

By: /s/ Steve Derby
    -----------------------------------
    Name: Steve Derby
    Title: Director

RHP MASTER FUND, LTD/                    15,021 shares
($1 million principal amount)

By: /s/
    -----------------------------------
    Name:
    Title:

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