Document:

Exhibit
10.1

 

FIFTH
AMENDMENT TO LOAN AGREEMENT 

 

This
FIFTH AMENDMENT TO LOAN AGREEMENT (this “Amendment”) is made this as of the 26th day of August, 2021 by
and among MidCap Business Credit LLC, a Texas limited liability company, the secured party hereunder (hereinafter called “Lender”),
BLONDER TONGUE LABORATORIES, INC., a Delaware corporation (together with its successors and permitted assigns, “Borrower”),
R. L. DRAKE HOLDINGS, LLC, a Delaware limited liability company (together with its permitted successors and assigns, “Drake”),
and BLONDER TONGUE FAR EAST, LLC, a Delaware limited liability company (together with its permitted successors and assigns, “Far
East”). Each of Borrower, Drake and Far East are individually referred to herein as a “Loan Party” and individually,
collectively, jointly and severally, the “Loan Parties”.

 

WHEREAS,
the Loan Parties and Lender have entered that Loan and Security Agreement (All Assets) dated as of October 25, 2019, as amended by that
certain Consent and Amendment to Loan Agreement and Loan Documents, dated as of April 7, 2020, that certain Second Amendment to Loan
Agreement, dated as of January 8, 2021, that certain Third Amendment to Loan Agreement, dated as of June 14, 2021 and that certain Fourth
Amendment to Loan Agreement, dated as of July 30, 2021 (as amended, the “Loan Agreement”).

 

WHEREAS,
Borrower has requested that the Loan Agreement be amended to, among other things, provide for an over-advance facility in the maximum
amount of $400,000, defer the monthly incremental increase to the Availability Block, and modify the definition of “Minimum EBITDA
Covenant Trigger Event” as described therein, and Lender is willing to make such modifications to the Loan Agreement, subject to
the terms and conditions set forth herein.

 

NOW
THEREFORE, in consideration of the foregoing premises and the mutual benefits to be derived by the Loan Parties and Lender from a continuing
relationship under the Loan Agreement and Loan Documents and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the parties hereto agree as follows:

 

1.
Defined Terms. Capitalized terms used in this Amendment which are defined in the Loan Agreement shall have the same meanings
as defined therein, unless otherwise defined herein.

 

2.
Amendment to Loan Agreement. The Loan Agreement is hereby amended as of the date hereof as follows:

 

		(a)	Definition
                                            of Borrowing Base - Section 5(c). The definition of Borrowing Base in Section 5(c) of
                                            the Loan Agreement is hereby amended and restated in its entirety, as follows:

 

“(c)
The term “Borrowing Base” as used herein shall mean the sum of the following:

 

(1)
up to eighty-five (85%) percent of the unpaid face amount of Qualified Accounts (as defined below), PLUS

 

(2)
the lesser of (A) eighty-five (85%) percent of the Net Orderly Liquidation Value of all Eligible Inventory (as defined below), which
such Net Orderly Liquidation Value shall be reset on an annual basis in connection with the updated appraisals obtained in connection
herewith, or (B) $2,500,000, PLUS

 

(3)
an over-advance facility in the amount of Four Hundred Thousand and 00/100 Dollars ($400,000), which such amount shall, commencing on
December 1, 2021 and continuing on the first Business Day of each succeeding calendar month, reduce by $50,000 per month until such amount
reaches $0 (the “Over-Advance Facility”), LESS 

 

     

     

    

 

(4)
the Borrowing Base Reserve (as defined below).” 

 

		(b)	Fees
                                            – Section 10 – Section 10 of the Loan Agreement is hereby amended to add
                                            a new Section 10(f) immediately following Section 10(e), which such new Section 10(f) shall
                                            read as follows:

 

“(f)Over-Advance
Fee. The Borrower hereby agrees to pay to the Lender a non-refundable over-advance fee equal to one and one-half of one percent
(1.50%) times the outstanding balance of the Over-Advance Facility, as determined on the Fifth Amendment Effective Date and thereafter
on the first day of each calendar month (each such date, an “Over-Advance Fee Measurement Date”), due and payable
on or before the first Business Day following each such Over-Advance Fee Measurement Date.”

 

		(c)	Definition
                                            of “Availability Block” - Section 22(p). The term “Availability Block”
                                            in Section 22(p) of the Loan Agreement is hereby deleted in its entirety and replaced with
                                            the following in its stead:

 

““Availability
Block” means (i) as of the date of the First Amendment through May 31, 2020, an amount equal to $0, (ii) as of June 1, 2020, an
amount equal to $6,666.66, and continuing on the first Business Day of each succeeding month thereafter, such amount shall increase by
$6,666.66 per such applicable date until August 31, 2021, (iii) as of September 1, 2021 through November 30, 2021, an amount equal to
$99,999.90, (iv) as of December 1, 2021, an amount equal to $106,666.56, and continuing on the first Business Day of each succeeding
month thereafter, such amount shall increase by $6,666.66 per such applicable date until such amount reaches $400,000, and (v) at all
times thereafter, an amount equal to $400,000.” 

 

		(d)	Definition
                                            of “Minimum EBITDA Covenant Trigger Event” - Section 22(p). Effective retroactively
                                            to and as of August 1, 2021, the term “Minimum EBITDA Covenant Trigger Event”
                                            in Section 22(p) of the Loan Agreement is hereby deleted in its entirety and replaced with
                                            the following in its stead:

 

““Minimum
EBITDA Covenant Trigger Event” means (A) the failure of the Loan Parties to maintain Excess Availability in an amount equal to
$400,000 or more (i) for any seven (7) Business Days in the month of December 2020 (whether such failure occurs on seven (7) consecutive
Business Days or not), (ii) for any twelve (12) Business Days during the month of January 2021 (whether such failure occurs on twelve
(12) consecutive Business Days or not), (iii) for any seven (7) Business Days in the month of February 2021 (whether such failure occurs
on seven (7) consecutive Business Days or not), (iv) for any three (3) Business Days during each of March 2021, April 2021 and May 2021
(whether such failure occurs on three (3) consecutive Business Days or not), and (v) for any twelve (12) Business Days during each of
the months of June 2021 and July 2021 (whether such failure occurs on twelve (12) consecutive Business Days or not), and (B) the failure
of the Loan Parties to maintain Excess Availability in the following amounts for any three (3) Business Days in a calendar month (whether
such failure occurs on three (3) consecutive Business Days or not): (i) $50,000 or more for the month of January 2022, (ii) $100,000
or more for the month of February 2022, (iii) $150,000 or more for the month of March 2022, (iv) $200,000 or more for the month of April
2022, (v) $250,000 or more for the month of May 2022, (vi) $300,000 or more for the month of June 2022, (vii) $350,000 or more for the
month of July 2022, and (viii) $400,000 or more for the month of August 2022 or any subsequent calendar month thereafter.” 

 

    2

     

    

 

		(e)	Definitions
                                            - Section 22(p). Section 22(p) of the Loan Agreement is hereby amended to add the following
                                            definitions in the appropriate alphabetical order:

 

“Over-Advance
Facility” shall have the meaning set forth in Section 5(c).

 

“Over-Advance
Fee Measurement Date” shall have the meaning set forth in Section 10(f).

 

“Fifth
Amendment Effective Date” means August 26, 2021. 

 

3.
Amendment Fee. Borrower agrees to pay Lender as of the date hereof a fully earned, non-refundable fee in the amount of $10,000
in consideration of the execution by Lender of this Amendment (“Amendment Fee”).

 

4.
Conditions to Closing. The willingness of Lender to enter into this Amendment shall be subject to the condition precedent
that Lender shall have received all of the following, each in form and substance satisfactory to Lender:

 

		(a)	This
                                            Amendment properly executed and delivered,

 

(b)
Payment by Borrower of the Amendment Fee, and

 

(c)
Payment by the Borrower of the fully earned, nonrefundable over-advance fee, if any, referred to in Section 2(b) above, and any and all
outstanding reasonable out-of-pocket fees and expenses relating to the Loan Agreement and/or this Amendment incurred by the Lender, including,
without limitation, attorney’s fees and expenses.

 

5.
Representations and Warranties. Each Loan Party represents and warrants to Lender that such Loan Party has the full power
and authority to execute, deliver and perform its obligations under, this Amendment and the execution and delivery of this Amendment
have been duly authorized by all necessary action of the stockholders, directors, members and managers, as applicable, of such Loan Party.

 

6.
Release and Confirmation. Each Loan Party hereby (i) reaffirms that it remains indebted to Lender without defense, counterclaim
or offset and, assuming effectiveness of this Amendment, no default or Event of Default has occurred or exists under the Loan Documents,
(ii) restates, and reaffirms, all of its covenants, representations and warranties set forth in the Loan Documents to the same extent
as if fully set forth herein and each Loan Party hereby certifies that after giving effect to this Amendment, all such covenants, representations
and warranties are true and accurate as of the date hereof and (iii) acknowledges and warrants that it does not have any claims, actions
or causes of action whatsoever in law or in equity against Lender, its’ officers, directors, employees, agents, successors, subsidiaries,
related companies or attorneys (for the purpose of this paragraph, collectively referred to herein as the “Lenders”) or any
of them, in connection with or related to or arising from any and all transactions with Lenders, whether known or unknown, including,
but not limited to, the loans, through the date of this Amendment, and each Loan Party for good and valuable consideration hereby waives,
remises, releases and discharges any and all rights with respect to such claims, additions or causes of action, if any.

 

    3

     

    

 

7.
Counterparts. This Amendment may be executed in one or more counterparts, each of which when so executed and delivered shall
be deemed to be an original and all of which taken together shall constitute but one and the same agreement. Counterpart signature pages
to this Amendment transmitted by facsimile transmission, by electronic mail in “portable document format” (“.pdf”)
form, or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the
same effect as physical delivery of the paper document bearing an original signature.

 

8.
References. Upon and after the date of this Amendment all references to the Loan Agreement in the Loan Documents, or in any
related document, shall mean the Loan Agreement as amended by this Amendment. Except as expressly provided in this Amendment, the execution
and delivery of this Amendment does not and will not amend, modify or supplement any provision of, or constitute a consent to or a waiver
of any noncompliance with the provisions of the Loan Agreement, and, except as specifically provided in this Amendment, the Loan Agreement
shall remain in full force and effect in accordance with the respective terms thereof.

 

9.
Loan Documents Ratified. This Amendment is executed as an instrument under seal and shall be governed by and construed in
accordance with the laws of the State of Connecticut without regard to its conflicts of law rules. All parts of the Loan Agreement and
the other Loan Documents, not affected by this Amendment are hereby ratified and affirmed in all respects, provided that if any
provision of the Loan Documents shall conflict or be inconsistent with this Amendment, the terms of this Amendment shall supersede and
prevail.

 

10.
Costs and Expenses. Each Loan Party hereby reaffirms its agreement under the Loan Agreement to pay or reimburse Lender on
demand for all costs and expenses incurred by Lender in connection with the Loan Documents, including without limitation all reasonable
fees and disbursements of legal counsel. Without limiting the generality of the foregoing, each Loan Party specifically agrees to pay
all fees and disbursements of counsel to Lender for the services performed by such counsel in connection with the preparation of this
Amendment and the documents and instruments incidental hereto. Each Loan Party hereby agrees that Lender may, at any time or from time
to time in its sole discretion and without further authorization by the Loan Party, make a loan to Borrower under the Loan Agreement,
or apply the proceeds of any loan, for the purpose of paying any such fees, disbursements, costs and expenses.

 

[SIGNATURES
CONTINUED ON FOLLOWING PAGE]

 

    4

     

    

 

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

 

	 	BORROWER:
	 	 	 	 
	 	 	BLONDER TONGUE LABORATORIES, INC.
	 	 	 	 
	 	 	By:	 
	 	 	Name:	Eric Skolnik
	 	 	Title: 	Senior Vice President and Chief Financial Officer
	 	 	 	 
	 	OTHER LOAN
    PARTIES:
	 	 	 	 
	 	 	BLONDER TONGUE FAR EAST, LLC
	 	 	 	 
	 	 	By:	/s/ Eric Skolnik
	 	 	Name:	Eric Skolnik
	 	 	Title:	Senior Vice President and Chief Financial Officer
	 	 	 	 
	 	 	R. L. DRAKE HOLDINGS, LLC
	 	 	 	 
	 	 	By:	/s/ Eric
    Skolnik
	 	 	Name:	Eric Skolnik
	 	 	Title: 	Senior Vice President and Chief Financial Officer
	 	 	 	 
	 	LENDER:
	 	 	 	 
	 	 	MIDCAP
    BUSINESS CREDIT LLC
	 	 	 	 
	 	 	By:	/s/ Peter F. Rutigliano
	 	 	Name: 	Peter F. Rutigliano
	 	 	Title:	Executive Vice President

 

[Fifth
Amendment to Loan Agreement]Exhibit 10.2

 

CONFIDENTIAL TREATMENT

[***] indicates that certain confidential information contained in
this document, marked by brackets, has been omitted because the information is (i) not material and (ii) would be competitively harmful
if publicly disclosed.

 

PROMISSORY NOTE

 

	US $630,111.11	August 24th, 2021 

 

For value received, the undersigned (“Maker”)
promises and agrees to pay to [***], the principal sum of Six Hundred Thirty Thousand One Hundred and Eleven Dollars and Eleven Cents
($630,111.11) together with interest on the unpaid principal balance at the annual rate of twelve percent (12%) per annum. Interest shall
be calculated on the basis of a 365-day year and date of payment.

 

This Note relates to and is intended to memorialize
and provide a payment schedule for the “Premium Charges” noted on Maker’s purchase order numbers [***], [***], and [***],
each dated August 20, 2021, copies of which are attached hereto, relating to goods purchased in the ordinary course of business,. This
Note is unsecured.

 

Principal and interest shall be due and payable
via wire transfer, pursuant to the following wire transfer instructions:

 

[***]

 

or pursuant to at such other wire transfer instructions, as the holder
hereof may designate to Maker in writing.

 

Principal and interest shall be due and payable
per the attached schedule commencing on the 15th day of September, 2021. All unpaid principal and any accrued interest shall
be due and payable in full on or before February 15, 2022 (the “Maturity Date”). Principal, interest and all other sums
payable hereunder shall be paid in lawful money of the United States of America. At the holder’s option, any payments hereunder may be
applied first to accrued interest and then to principal. Maker shall pay to [***] a late charge equal to 1% of the amount of any payment
due hereunder which shall not have been made to [***] within five (5) business days after the date that such payment becomes due.

 

Maker may prepay all or any portion of the unpaid
principal balance. Any such prepayment of principal hereunder shall be without any premium or penalty.

 

This Note shall become immediately due and payable
at the option of the holder hereof without presentment or demand or any notice to Maker upon default in the payment of any principal or
any interest hereon within fifteen (15) days after the due date, or upon default in payment under any other agreement between Maker and
[***] which is not cured within any applicable cure period. Failure to exercise this option shall not constitute a waiver of the right
to exercise the same in the event of any subsequent default.

 

In the event any holder hereof utilizes the services
of an attorney in attempting to collect the amounts due hereunder or to enforce the terms hereof or of any agreements related to this
indebtedness, or if any holder hereof becomes party plaintiff or defendant in any legal proceeding for the recovery or protection of the
indebtedness evidenced hereby, Maker and any endorsers hereof agree to pay, in addition to the principal and interest due hereon, all
costs and a reasonable amount as attorneys’ fees, whether or not suit is brought.

 

The rate of interest agreed to shall include the
interest rate as shown above, in accordance with the terms of this Note, plus any additional charges, costs and fees incident to this
Note to the extent they are deemed to be interest under applicable law.

 

Maker and all endorsers of this Note waive (i)
demand, presentment for payment, notice of nonpayment, protest, notice of protest and all other notices, (ii) filing of suit, (iii) diligence
in collecting this Note. Maker and all endorsers of this Note further agree that it will not be necessary for any holder hereof, in order
to enforce payment of this Note by any of them, to first institute suit or exhaust its remedies against any Maker and all endorsers, and
consent to an extension or postponement of time of payment of this Note or any other indulgence with respect hereto, including, but not
limited to, the release of any party primarily or secondarily liable hereon, without notice thereof to any of them.

 

This Note shall be construed in accordance with
and governed by the laws of the State of Arizona.

 

	 	(Maker)	 
	 	 	 
	 	Blonder Tongue Laboratories, Inc.
	 	 	 
	 	By:	 
	 	 	Edward R. Grauch, Chief Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00332-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00332-of-00352.parquet"}]]