Document:

GUARANTY 

        THIS
GUARANTY (this “Guaranty”) is made as of the 5th day of December,
2005, by CERTIFIED GROCERS MIDWEST, INC., an Illinois corporation (“Guarantor”),
for the benefit of FRESH BRANDS, INC., a Wisconsin corporation (“Company”), in
connection with the Merger Agreement referred to below. 

WITNESSETH: 

        WHEREAS,
on the date hereof, Company has entered into that certain Agreement and Plan of Merger
(the “Merger Agreement”), by and among Company, Certified Holdings, Inc., a
Delaware corporation (“Parent”), and Pillow Acquisition Corp., a Wisconsin
corporation and a wholly owned subsidiary of Parent (“Acquisition Sub”),
pursuant to which Acquisition Sub will merge with and into Company (the
“Merger”), with Company continuing as the surviving corporation in the Merger
(Company as the surviving corporation in the Merger being referred to herein as
“Surviving Corporation”), upon the terms and subject to the conditions set forth
in the Merger Agreement; and 

        WHEREAS,
the Merger Agreement provides that, generally speaking, upon the effective time of the
Merger, each share of Company’s common stock, $0.05 par value per share, issued and
outstanding immediately prior to the effective time shall be canceled and be converted
into the right to receive $7.05 in cash payable to the holder thereof, without interest
(the “Merger Consideration”), upon surrender of the certificate representing
such share; and 

        WHEREAS,
in order to induce Company to enter into the Merger Agreement, Guarantor is executing and
delivering this Guaranty whereby Guarantor shall guarantee the payment by Parent when due
of the aggregate Merger Consideration. 

        NOW,
THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows: 

        SECTION
1.            Definitions.  Terms defined in the Merger  Agreement and not otherwise
 defined herein have, as used herein,  the respective meanings provided for in the Merger
Agreement. 

        SECTION
2.          Representations, Warranties and Covenants.  Guarantor represents and warrants
to Company that: 

	 	        (A)              Guarantor
is a corporation duly organized, validly existing and in good standing           under
the Laws of the State of Illinois. Guarantor has all requisite corporate           power
and authority to execute and deliver this Guaranty and to carry out the
          transactions contemplated hereby.  

	 	        (B)              The
execution and delivery of this Guaranty and the consummation of the
          transactions contemplated hereby have been duly authorized and approved by the
          board of director of Guarantor. No other or further corporate act or proceeding
          on the part of Guarantor or its shareholders is necessary to authorize or
          approve this Guaranty or the consummation of the transactions contemplated
          hereby. This Guaranty constitutes a valid and binding agreement of Guarantor,
          enforceable against it in accordance with its terms, except as such may be
          limited by bankruptcy, insolvency, reorganization or other laws affecting
          creditors’ rights generally, and by general equitable principles.  

	 	        (C)              Neither
the execution and delivery of this Guaranty nor the consummation by           Guarantor
of the transactions contemplated hereby (i) will violate any Laws or           Orders of
any Governmental Entity applicable to Guarantor, (ii) will require any
          authorization, consent, approval, exemption or other action by or notice to any
          Governmental Entity or (iii) will violate or conflict with, or constitute a
          default (or an event that, with notice or lapse of time, or both, would
          constitute a default) under, or will result in the termination of, or
accelerate           the performance required by, any term or provision of the charter,
bylaws or           similar organizational documents of Guarantor or of any Contract to
which           Guarantor is a party or by which Guarantor or any of its assets or
properties           may be bound or affected, except in the case of Contracts for any
such items           which would not, individually or in the aggregate, have a material
adverse           effect on Guarantor taken as a whole or impair or adversely affect in
any           material respect Guarantor’s ability to perform its obligations under
this           Guaranty.  

        SECTION
3. Unconditional Guaranty. Guarantor hereby unconditionally guarantees the
obligation of Parent, subject to the terms and satisfaction of the conditions set forth
in the Merger Agreement, to, at or prior to the Effective Time, make available or cause
to be made available to the Paying Agent cash in amounts necessary for the payment of the
Merger Consideration under Section 1.08(b) of the Merger Agreement to which
holders of Shares shall be entitled at the Effective Time pursuant to Section 1.06(a) of
the Merger Agreement (the foregoing being referred to as the “Guaranteed
Obligations”). Upon failure by Parent to pay punctually any such amount if and
when due in accordance with the Merger Agreement, Guarantor agrees that it shall
forthwith make available or cause to be made available to the Paying Agent cash in
amounts necessary for the payment of the Guaranteed Obligations. If Parent is obligated
to consummate the Merger pursuant to the terms and conditions of the Merger Agreement, no
further act or thing need occur to establish Guarantor’s liability hereunder, and no
act or thing, except full payment of the Guaranteed Obligations, shall in any way
exonerate Guarantor hereunder or modify, limit or release Guarantor’s liability
hereunder. If Parent is obligated to consummate the Merger pursuant to the terms and
conditions of the Merger Agreement, this is an absolute, unconditional and continuing
guaranty of payment of the Guaranteed Obligations and shall continue to be in force and
be binding upon Guarantor until the Guaranteed Obligations been paid in full and are no
longer subject to any right of recovery. Notwithstanding anything herein to the contrary,
if Parent shall not be obligated to consummate the Merger pursuant to the terms and
conditions of the Merger Agreement, Guarantor shall have no obligation hereunder.  

        SECTION
4. Discharge Only Upon Payment in Full. Guarantor’s obligations hereunder
shall remain in full force and effect until all Guaranteed Obligations shall have been
paid in full in cash and are no longer subject to any right of recovery or the Merger
Agreement shall have terminated in accordance with its terms.  

        SECTION
5. Waivers. Guarantor waives any and all defenses and discharges available to a
surety, guarantor or accommodation co-obligor claims pertaining to the Guaranteed
Obligations, except the defense of discharge by payment in full. Without limiting the
generality of the foregoing, Guarantor will not assert, plead or enforce against Company
any defense of waiver, release, discharge or disallowance in bankruptcy, statute of
limitations, res judicata, statute of frauds, anti-deficiency statute, fraud, incapacity,
minority, usury, illegality or unenforceability which may be available to Company or any
other Person liable in respect of any of the Guaranteed Obligations, or any setoff
available against Company or any other such Person. The liability of Guarantor shall not
be affected or impaired by any voluntary or involuntary liquidation, dissolution, sale or
other disposition of all or substantially all of the assets, marshalling of assets and
liabilities, receivership, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement, composition or readjustment of, or other similar
event or proceeding affecting, Company or any of its assets. Guarantor irrevocably waives
acceptance, presentment, demand for payment (except demand for payment of the Guaranteed
Obligations from Parent first before demanding payment from the Guarantor pursuant
hereto), notice of dishonor or nonpayment and protest of any instrument evidencing the
Guaranteed Obligations, as well as any requirement that at any time any action be taken
by any Person against Parent or Surviving Corporation or any other Person other than
Company’s demand for payment of the Guaranteed Obligations from Parent first before
demanding payment from the Guarantor pursuant hereto. Notwithstanding anything herein to
the contrary, any and all defenses or discharges available to Parent or Acquisition Sub
with respect to any alleged obligation to consummate the Merger pursuant to and in
accordance with the Merger Agreement or otherwise with respect to the amount of the
Merger Consideration shall be available and may be asserted by Guarantor with respect to
any alleged obligation to make any payment hereunder with respect to the Guaranteed
Obligations.  

        SECTION
6. Notices. All notices and other communications given or made pursuant hereto
shall be in writing and shall be deemed given (a) on the date of delivery, upon delivery
in person, (b) on the fifth business day after delivery, by registered or certified mail
(postage prepaid, return receipt requested), or (c) one business day after having been
sent by express mail through a nationally recognized overnight courier, in each case to
the parties at the following addresses (or at such other address for a party as shall be
specified by like notice):  

        (a)              If
to Guarantor:  

	 	
Certified
Grocers Midwest, Inc.                            
One Certified Drive
                           
Hodgkins, Illinois  60525
                           
Attention:  Ken Koester 

	 	
With
a copy to:                            
Sonnenschein Nath & Rosenthal LLP
                           
8000 Sears Tower                            
233 South Wacker
Drive                            
Chicago, Illinois 60606
                           
Attention:  J. Ross Docksey 

        (b)              If
to Company:  

	 	
Fresh
Brands, Inc.                            
2215 Union Avenue
                           
Sheboygan, Wisconsin  53081                            
Attention:
 Louis E. Stinebaugh 

	 	
With
a copy to:                            
Foley & Lardner LLP                            
777
East Wisconsin Avenue                            
Milwaukee, Wisconsin 53202
                           
Attention:  Steven R. Barth 

        SECTION
7. No Waivers. No failure or delay by Company in exercising any right, power or
privilege hereunder shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise of any
other right, power or privilege. The rights and remedies provided in this Guaranty and
the Merger Agreement shall be cumulative and not exclusive of any rights or remedies
provided by law.  

        SECTION
8. Successors and Assigns. This Guaranty is for the benefit of Company and its
successors and permitted assigns, including, without limitation, Surviving Corporation,
and shall survive consummation of the Merger. This Guaranty shall be binding upon
Guarantor and its respective successors and assigns.  

        SECTION
9. Changes in Writing. Neither this Guaranty nor any provision hereof may be
changed, waived, discharged or terminated orally, but only in writing signed by each of
Guarantor and Company.  

        SECTION
10. Governing Law. This Guaranty shall be governed by and construed in accordance
with the substantive laws (other than conflict laws) of the State of Wisconsin. The
Guarantor hereby (i) consents to the personal jurisdiction of the state and federal
courts located in the State of Wisconsin in connection with any controversy related to
its Guaranty; (ii) waives any argument that venue in any such forum is not convenient,
(iii) agrees that any litigation initiated by the Lender or the Guarantor in connection
with this Guaranty shall be venued in either the Circuit Court of Milwaukee County,
Wisconsin, or the United States District Court, Eastern District of Wisconsin; and (iv)
agrees that a final judgment not subject to appeal in any such suit, action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law.  

        SECTION
11. WAIVER OF JURY TRIAL. GUARANTOR HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL
PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT,
CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS
GUARANTY OR THE RELATIONSHIP ESTABLISHED HEREUNDER.  

        SECTION
12. Construction. The parties hereto have participated jointly in the negotiation
and drafting of this Guaranty. In the event an ambiguity or question of intent or
interpretation arises, this Guaranty shall be construed as if drafted jointly by the
parties hereto and no presumption or burden of proof shall arise favoring or disfavoring
any party by virtue of the authorship of any provisions of this Guaranty.  

        SECTION
13. Expenses of Enforcement. Guarantor agrees to reimburse Company for any
reasonable costs and out-of-pocket expenses (including reasonable attorneys’ fees)
paid or incurred by Company in connection with the collection and enforcement of amounts
due pursuant to this Guaranty.  

        SECTION
14. Severability. Wherever possible, each provision of this Guaranty shall be
interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Guaranty shall be prohibited by or invalid under such law, such
provision shall be ineffective to the extent of such prohibition or invalidity without
invalidating the remainder of such provision or the remaining provisions of this
Guaranty.  

        SECTION
15. Merger. This Guaranty represents the final agreement of Guarantor with respect
to the matters contained herein and may not be contradicted by evidence of prior or
contemporaneous agreements, or subsequent oral agreements, between Guarantor and Company
or any other Person.  

        SECTION
16. Headings. Section headings in this Guaranty are for convenience of reference
only and shall not govern the interpretation of any provision of this Guaranty.  

        IN
WITNESS WHEREOF, Guarantor has caused this Guaranty to be duly executed by its authorized
officer as of the day and year first above written. 

		CERTIFIED MIDWEST GROCERS, INC.
	

 	By:  /s/ Kenneth R. Koester
		        Name:  Kenneth R. Koester
		        Title:  PresidentAMENDMENT AND
CANCELLATION OF
KEY EXECUTIVE EMPLOYMENT AND SEVERANCE AGREEMENT  

        THIS
AGREEMENT, made and entered into as of the 5th day of December, 2005, by
and among FRESH BRANDS, INC., a Wisconsin corporation (the “Company”),
PILLOW ACQUISITION CORP., a Wisconsin corporation (“Certified”), and
LOUIS E. STINEBAUGH (the “Executive”). 

W I T N E S S E T H : 

        WHEREAS,
the Executive and the Company entered into that certain Key Executive Employment and
Severance Agreement dated December 15, 2003 (the “KEESA”) to ensure that any
proposal for a change in control or acquisition of the Company will be considered by the
Executive objectively, with reference only to the best interests of the Company and its
shareholders and without undue regard for the Executive’s personal interests; 

        WHEREAS,
the Company has entered into that certain Agreement and Plan of Merger among Certified
Holdings, Inc., Pillow Acquisition Corp. and the Company, dated as of this date (the
“Merger Agreement”) that provides for the merger of Certified and the Company
(the “Merger”); 

        WHEREAS,
the Company, Certified and Executive have agreed, in connection with the proposed Merger,
to terminate the Executive’s KEESA (other than the provisions providing for a
gross-up payment for Internal Revenue Code Section 280G excise taxes subject to the
provisions of the Agreement) in exchange for a cash payment to be made in part upon the
execution of this Agreement and in part upon the Effective Time, as that term is defined
in the Merger Agreement; 

        WHEREAS,
the KEESA may be considered a deferred compensation agreement within the meaning of Code
Section 409A; 

        WHEREAS,
pursuant to IRS Notice 2005-1, Q&A-19, a deferred compensation arrangement may be
amended prior to December 31, 2005 to provide for a new time of payment; 

        WHEREAS,
pursuant to the KEESA, the amounts payable under the KEESA are paid upon a separation from
service, and the parties desire that, in order to effectuate the agreement between
Certified and Executive, payment now be made in part upon the execution of this Agreement
and in part upon the Effective Time of the Merger, which is considered a Change in Control
under Code Section 409A; 

        WHEREAS,
the parties desire to amend the KEESA to reflect the new payment dates and provide for the
payment of the value of the KEESA to the Executive as set forth in this Agreement; 

        WHEREAS,
the portion of the payment made upon the execution of this Agreement is not intended to be
returned to the Company in any circumstances, including the termination of the Merger; and 

        WHEREAS,
the parties desire to amend the provisions of the KEESA that will remain in effect after
the Effective Time of the Merger for purposes of complying with Code Section 409A to
the extent applicable. 

        NOW,
THEREFORE, in consideration of the foregoing, the parties hereto agree as follows: 

        1.     Amendment
of KEESA. Effective on the date hereof, the KEESA is amended to           provide
that:  

	 	        a.              Upon
the execution of this Agreement by the Executive and the Company, the           Company
shall promptly pay to Executive twenty-five thousand dollars ($25,000);           and  

	 	        b.              Subject
to the provisions of Section 3 of this Agreement, if the Executive is           employed
by the Company immediately prior to the Effective Time, the Company           shall pay
to Executive on the Effective Time nine hundred and fifty-two thousand           five
hundred dollars ($952,500).  

For the avoidance of doubt, the
payment pursuant to Section 1(a) is not intended to be returned to the Company in any
circumstances, including the termination the Merger; the payment pursuant to Section 1(b)
is subject to adjustment or repayment in the manner provided in Section 3. 

        2.     Termination
of KEESA. On the Effective Time, the KEESA shall terminate,           except for the
provisions of Section 9(c) (280G gross-up provisions), Section 15           (Expenses and
Interest), and Section 22 (Governing Law; Resolution of Disputes),           which shall
survive the termination of the KEESA and shall apply to this           Agreement as if
incorporated herein by reference; provided that Section           9(c) shall be
amended to provide that the Company shall pay (or cause to be           paid) or
distribute (or cause to be distributed) to or for the benefit of           Executive such
amounts as are then due to Executive under Section 9(c) of the           KEESA no later
than 21⁄2 months after the end of the calendar year in which           the payment
under Section 1 of this Agreement is made. For each subsequent           calendar year,
the Company shall pay (or cause to be paid) or distribute (or           cause to be
distributed) to or for the benefit of the Executive such additional           amounts
then due as required by Section 9(c) of the KEESA on March 15th (or as           soon as
practicable thereafter) of the following calendar year. Notwithstanding           the
foregoing, the gross-up provisions of Section 9(c) of the KEESA shall be
          modified as set forth in Section 3 of this Agreement.  

        3.     Representations
and Adjustments.  

	 	        a.    Representations
and Warranties. As an inducement to enter into this           Agreement, the
Executive makes the following representations and warranties to           the Company and
to Certified:  

	 	        i.              The
amount of taxable income received by the Executive from the Company and
          reported by the Company to the Executive on box 1 of Form W-2 was $9,615 and
          $364,096 for calendar years 2003 and 2004, respectively and such amounts were
          true and accurate.  

	 	        ii.              The
amount of taxable income the Executive expects the Company to report to him           on
box 1 of Form W-2 is $389,096 for calendar year 2005.  

	 	        iii.              The
start of the Executive’s employment with the Company was December 15,
          2003.  

2 

	 	        iv.    
         The Executive is unaware of the existence of any facts or circumstances that
          cause him to believe that he will receive an “excess parachute
          payment” (as defined in Treas. Reg. § 1.280G-1, Q&A 3) from the
          Company.  

	 	        b.    Violation
of Representations and Warranties. In the event the amounts of           income
includable in the gross compensation of the Executive are less than the           amounts
reported in Sections 3(a)(i) and 3(a)(ii), then this Section 3(b) shall           apply.  

	 	        i.              If
the Representations and Warranties set forth in Section 3(a) above are found
          not to be true and correct representations of the Executive’s
          “includable compensation” for purposes of Internal Revenue Code
          Section 280G on or before the Effective Time, then the payment made pursuant to
          Section 1(b) shall be reduced on a dollar-for-dollar basis to the extent of
such           shortfall . If the Representations and Warranties set forth in Section
3(a)           above are found not to be true and correct representations of the
          Executive’s “includable compensation” for purposes of Internal
          Revenue Code Section 280G after the Effective Time, then the Executive shall
          return the amount of such shortfall to the Company from the payment made
          pursuant to Section 1(b).  

	 	        ii.              The
Company shall not be obligated to provide a gross-up payment pursuant to
          Section 9(c) of the KEESA if such gross-up is attributable to the inaccuracy of
          any representation made in Section 3(a) of this Agreement.  

	 	        c.     Excess
Parachute Payment Due to Payment of KEESA in 2005. If upon           subsequent
audit, the payment made pursuant to Section 1(a) causes that payment           together
with the payment made pursuant to Section 1(b) to result in an           “excess
parachute payment” that would not otherwise result if the           amount specified
in Section 1(a) were paid upon the Effective Time, then the           Executive shall
repay the amount from the amount paid pursuant to Section 1(b),           if any, that
causes the Executive to avoid the excise tax imposed by Section           4999 of the
Code imposed as a result of the payment of the amount specified in           Section 1(a)
in 2005 instead of at the Effective Time. The Company shall not be           obligated to
provide a gross-up payment pursuant to Section 9(c) of the KEESA if           such
gross-up is attributable to the payment of the amount specified in Section           1(a)
in 2005 instead of at the Effective Time.  

	 	        d.     Change
in Law. In the event of amendment of Section 280G of the Internal           Revenue
Code between the date of this Agreement and the Effective Time, the           payment in
Section 1(b) shall be adjusted downward to the minimum amount           necessary to
avoid the imposition of an excise tax under Internal Revenue Code           Section 4999,
or a reduction of its income tax deduction pursuant to Section           280G for an
“excess parachute payment” (or any equivalent term under           successor
law).  

        4.    Compensation
in the Ordinary Course of Business. The Executive will not           accept payment
from the Company in 2005 other than (i) the payment s for           services actually
rendered to the Company in timing and amount consistent with           past practices,
and (ii) the payment(s) provided under this Agreement. If the           Executive accepts
such compensation and as a result receives an “excess           parachute payment,” the
Company shall not be obligated to provide an excise           tax gross-up payment
pursuant to Section 9(c) of the KEESA.  

3 

        5.    Affiliated
Group. For purposes of Sections 1, 3 and 4 of this Agreement,           the term
“Company” shall include any member of its affiliated group,           as
determined in accordance with Treas. Reg. § 1.280G-1, Q&A 46.  

        6.    Successors.
Upon the Effective Time, the term “Company” as used           in this Agreement
shall mean Certified. If, after the Effective Time, the           Company sells, assigns
or transfers all or substantially all of its business and           assets to any person,
or if the Company merges into or consolidates or otherwise           combines with any
person, then the Company shall assign all of its right, title           and interest in
this Agreement as of the date of such event to such person, and           the term “Company” shall
thereafter mean such person. This Agreement           and all rights of the Executive
shall inure to the benefit of and be enforceable           by the Executive’s
personal or legal representatives, executors,           administrators, heirs and
beneficiaries.  

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
written above. 

		
		FRESH BRANDS, INC.
	
 	By:  /s/ Walter G. Winding
		        Walter G. Winding, III
		        Chairman of the Board
	
 	PILLOW ACQUISITION CORP.
	
 	By:  /s/ Kenneth R. Koester
		        Kenneth R. Koester
		        President and Chief Executive Officer
	
 	EXECUTIVE
	
 	/s/ Louis E. Stinebaugh
		Louis E. Stinebaugh
		Address: W 336 S4675 Drumlin Drive
		Dousman, WI 53118

4

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