Document:

Exhibit 10.1

 

CONSENT UNDER LOAN AND SECURITY AGREEMENT

 

This CONSENT UNDER LOAN
AND SECURITY AGREEMENT (this “Consent”) is dated as of February 1, 2019, and is entered into by and among BLONDER
TONGUE LABORATORIES, INC., a Delaware corporation (“Parent”), R. L. DRAKE HOLDINGS, LLC, a Delaware limited
liability company (“Drake”, together with Parent, collectively the “Borrowers”), BLONDER
TONGUE FAR EAST, LLC, a Delaware limited liability company (“Far East”, together with the Borrowers, collectively
the “Credit Parties” and each a “Credit Party”), the Lenders party hereto, and STERLING NATIONAL
BANK, a national banking association, as administrative and collateral agent (in such capacity, and including its successors and
permitted assigns, the “Administrative Agent”) for the Lender Parties.

 

W I T N E S S E T H:

 

WHEREAS, the Credit Parties,
the Lenders and the Administrative Agent are parties to that certain Loan and Security Agreement dated as of December 28, 2016
(as amended, restated, supplemented or otherwise modified, the “Loan Agreement”; capitalized terms not otherwise
defined herein have the definitions provided therefor in the Loan Agreement);

 

WHEREAS, the Credit Parties
have requested that Lenders and Administrative Agent consent to the sale by the Parent of (i) 19.407 acres of land, together with
all rights, easements and interests appurtenant thereto, situate at Lot 8, Block 9000, also known as 1 Jake Brown Road, Old Bridge
Township, New Jersey 08857 (the “Land”), and (ii) all improvements located thereon, including, but not limited
to, a commercial building consisting of approximately 128,747 square feet (“the “Building,” and Land and
Building, collectively, the “Property”) and more particularly described on Exhibit “A” attached
hereto, for a purchase price of $10,500,000.00, pursuant to that certain Agreement of Sale dated as of August 3, 2018, between
the Parent and Jake Brown Rd, LLC, a New Jersey limited liability company (the “Buyer”), as amended by the Parent’s
letter dated September 20, 2018, which extended the Due Diligence Period expiration date, at the Parent’s request, to October
4, 2018, and as further amended by that certain Second Amendment to Agreement of Sale dated October 8, 2018 (collectively, the
“Sale Agreement”; such sale is hereinafter referred to as the “Sale”);

 

WHEREAS, pursuant
to the Sale Agreement, the Parent and the Buyer propose to enter into the Lease referred to therein whereby the Parent leases the
Property from the Buyer (the “Lease”);

 

WHEREAS, absent the prior
written consent of Lenders and Administrative Agent, the Sale would result in a breach of Section 9.8 of the Loan Agreement and
the Sale and the Lease would result in a breach of Section 9.9 of the Loan Agreement, each of which breaches would be an Event
of Default under Section 10.1(c)(i) of the Loan Agreement; and

 

WHEREAS, Lenders and
Administrative Agent are willing to consent to the Sale and the Lease subject to the terms and conditions set forth herein;

 

NOW THEREFORE, in consideration
of the mutual conditions and agreements set forth in the Loan Agreement and this Consent, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1. Consent.
Subject to the satisfaction of the applicable conditions set forth in Section 2 below, and in reliance on the representations
set forth in Section 4 below, Lenders and Administrative Agent hereby consent to the Sale and the Lease on the terms and subject
to the conditions set forth in the Sale Agreement and the Lease, respectively; provided that the proceeds of the Sale shall be
applied to prepay in full the outstanding principal balance of the Term RE Loan and all accrued and unpaid interest thereon and
to pay down the Revolving Loans to an outstanding balance of zero. The foregoing consent is a limited consent and shall not be
deemed to constitute a consent with respect to any other current or future departure from the requirements of any provision of
the Loan Agreement or any other Loan Documents.

 

     

     

    

 

2. Conditions
to Effectiveness. The effectiveness of Sections 1 and 3 of this Consent are subject to the following conditions precedent (the
“Conditions Precedent”):

 

(a) Administrative
Agent shall have received a copy of this Consent executed by each Credit Party;

 

(b) Administrative
Agent shall have received a landlord’s subordination and consent for the Property, in form and substance satisfactory to
Administrative Agent, executed by the Buyer as landlord under the Lease;

 

(c) The
Credit Parties shall have paid to the Administrative Agent all outstanding fees and expenses owing to the Lenders and Administrative
Agent under the Loan Documents as of such date, in each case, in immediately available funds; and

 

(d) after
giving effect to this Consent, no Default or Event of Default shall have occurred and be continuing.

 

3. Discharge
of Mortgage. Upon Administrative Agent’s receipt of proceeds of the Sale, in immediately available funds, in an amount
sufficient to pay in full the outstanding principal balance of the Term RE Loan and all accrued and unpaid interest thereon and
to pay down of the Revolving Loans to zero and satisfaction of each of the Conditions Precedent, Administrative Agent shall execute
and deliver a Discharge of Mortgage and Assignment of Leases and Rents (the “Discharge”) and shall file a UCC
termination statement for the UCC financing statement filed in favor of Administrative Agent in Middlesex County, New Jersey. The
parties hereto acknowledge and agree that Administrative Agent is not releasing its security interest in any Collateral other than
the Property, and such security interest in other Collateral granted pursuant to the Loan Agreement shall continue in full force
and effect.

 

4. Representations
and Warranties. To induce Lenders and Administrative Agent to enter into this Consent, each Credit Party represents and warrants
to Lenders and Administrative Agent that:

 

(a) the
execution, delivery and performance of this Consent has been duly authorized by all requisite corporate or limited liability company
action on the part of each Credit Party, and this Consent has been duly executed and delivered by each Credit Party;

 

(b) this
Consent is a legal and binding instrument and agreement of the Credit Parties, enforceable against
the Credit Parties and each of them in accordance with its terms; and

 

(c) after
giving effect to this Consent, no Default or Event of Default has occurred and is continuing.

 

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5. Expenses.
Each Credit Party hereby reaffirms its agreement under the Loan Agreement to pay or reimburse Administrative Agent on demand for
all costs and expenses incurred by Administrative Agent in connection with the Loan Documents, including without limitation all
reasonable fees and disbursements of Administrative Agent’s legal counsel. Without limiting the generality of the foregoing,
Credit Parties jointly and severally specifically agree to pay all fees and disbursements of counsel to Administrative Agent for
the services performed by such counsel in connection with the preparation of this Consent, the Discharge and other documents and
instruments incidental hereto. Each Credit Party hereby agrees that Administrative Agent may, at any time or from time to time
in its sole discretion and without further authorization by any Borrower or any other Person, make one or more Revolving Loans
to the Borrower under the Loan Agreement, or apply the proceeds of any Revolving Loan, for the purpose of paying such fees, disbursements,
costs and expenses in connection with this Consent.

 

6. Severability.
Any provision of this Consent held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate
the remainder of this Consent and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.

 

7. Counterparts.
This Consent may be separately executed in counterparts and by the different parties hereto in separate counterparts, each of which
when so executed shall be deemed to constitute one and the same agreement. This Consent may be duly executed and delivered by facsimile
transmission, electronic mail, or other electronic means.

 

8. Ratification.
This Consent is limited as stated herein and shall not be deemed to be a consent to any departure from the terms and provisions
of the Loan Agreement except as expressly stated herein and shall not be deemed to be a modification or waiver of any other term
or condition of the Loan Agreement. The terms and provisions of the Loan Agreement are ratified and confirmed and shall continue
in full force and effect. Each Credit Party hereby ratifies and confirms that all guaranties, assurances, security interests and
liens granted, conveyed or assigned to the Lenders and the Administrative Agent under the Loan Documents (as they may have been
renewed, extended, increased and amended), other than the Administrative Agent’s lien on the Property released pursuant to
the Discharge, are not released, reduced or otherwise adversely affected by this Consent or the Discharge and continue to guarantee,
assure and secure full payment and performance of the present and future Obligations, and agrees to perform such acts and duly
authorize, execute, acknowledge, deliver, file and record such additional documents and certificates as the Administrative Agent
may reasonably request in order to create, perfect, preserve and protect those guaranties, assurances, security interests and liens.

 

9. Governing
Law. This Consent shall be a contract made under and governed by the laws of the State
of New York, without regard to conflict of laws principles that would require the application of laws other than those of the State
of New York. Whenever possible each provision of this Consent shall be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Consent 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 Consent.

 

10. Final
Agreement. THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED
BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
THE PARTIES.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the
parties hereto have caused this Consent to be duly executed and delivered by their respective duly authorized officers or representatives
as of the date first written above.

 

	 	BLONDER TONGUE LABORATORIES, INC., as a Borrower and a Credit Party
	 	 	 
	 	By:	                                        
	 	Name: 	 
	 	Title:	 
	 	 	 
	 	R. L. DRAKE HOLDINGS, LLC, as a Borrower and a Credit Party
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	BLONDER TONGUE FAR EAST, LLC, as a Guarantor and a Credit Party
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	STERLING NATIONAL BANK, as Administrative Agent, Swing Lender and Lender
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

Signature Page to Consent Under Loan and Security Agreement

 

    -4-

     

    

 

EXHIBIT A

 

Description of Real Property

 

Real property in the City of Old Bridge, County of
Middlesex, State of New Jersey, described as follows:

 

ALL THAT
CERTAIN lot, piece or parcel of land, situate, lying and being in the Township of Old Bridge, County of Middlesex, State of New
Jersey:

 

BEGINNING
at a point in the Easterly line of Jake Brown Road, variable width, distant 346.37 feet on a course bearing North 06 degrees 50
minutes 00 seconds East, from the intersection of the said line of Jake Brown Road extended Southerly with the Northerly line of
Patio Greens Drive, extended Westerly, and running; thence

 

1. North
06 degrees 50 minutes 00 second East, 32.39 feet along the Easterly line of Jake Brown Road, as shown on a plat entitled Final
Map Section 2 Patio Greens dated 9/5/84, filed with the Middlesex County Clerk on 8/20/85 as Map No. 4886, File No. 972, to a point
of curvature; thence

 

2. Northeasterly,
continuing along the easterly line of Jake Brown Road, along a curve to the left, having a radius of 1,000.00 feet, an arc distance
of 76.55 feet, a delta angle of 04 degrees 23 minutes 10 seconds, a chord distance of 76.53 feet and a chord bearing of North 04
degrees 38 minutes 25 seconds East to a 1/2” steel pin with plastic identification cap set to a point
of tangency; thence

 

3. North
02 degrees 26 minutes 52 seconds East, 541.66 feet along the Easterly line of Jake Brown Road to a point of curvature, being the
beginning of the second course in Deed Book 2669, Page 827; thence

 

4. Northeasterly,
continuing along the said easterly line of Jake Brown Road, along a curve to the right, having a radius of 50.00 feet, an arc distance
of 78.54 feet, a delta angle of 90 degrees 00 minutes 00 seconds, a chord distance of 70.71 feet and a chord bearing of North 47
degrees 26 minutes 50 seconds East to a masonry nail with metal disk set at a point of tangency; thence;

 

5. South
87 degrees 33 minutes 10 seconds East, 792.91 feet along the Southerly line of Jake Brown Road to a point of curvature; thence

 

6. Northeasterly,
continuing along the southerly line of Jake Brown Road, along a curve to the left, having a radius of 200.00 feet, an arc distance
of 210.90 feet, a delta angle of 60 degrees 25 minutes 10 seconds, a chord distance of 201.27 feet and a chord bearing of North
62 degrees 14 minutes 15 seconds East to a 1/2” steel pin with plastic identification cap set at a
point of tangency; thence,

 

7. North
32 degrees 01 minutes 40 seconds East, 244.08 feet to a point in the Easterly line of the present Jake Brown Road and the old Jake
Brown Road, being the terminus of the 6th course in Deed Book 2660, Page 86; thence

 

8. South
53 degrees 58 minutes 40 seconds East, 396.74 feet along the line of Lot 9 to a point; thence

 

9. South
44 degrees 50 minutes 00 seconds West, 189.49 feet along the line of Lot 1 in Block 9002 as shown on a plat entitled Final Map
Section 3 Patio Greens dated 3/31/82, filed in the Middlesex County Clerk’s Office on 4/19/84 as Map No. 4690, File No. 970;
thence

 

10. South
43 degrees 03 minutes 07 seconds West, 849.65 feet to a point, said point being 9.25 feet Easterly of the point of beginning in
the Deed Book 3289, Page 68 and 9.25 feet Westerly of the terminus of the 3rd course in Deed Book 3289, Page 68, Tract 2; thence

 

11. North
88 degrees 14 minutes 26 seconds West, 792.62 feet to a point, being the point and place of beginning.

 

12. NOTE:
FOR INFORMATION ONLY: Being Lot(s) 8, Block(s) 9000; Tax Map of the Township of Old Bridge, County of Middlesex, State of New Jersey.

 

    -5-Exhibit 10.2

 

DEBT CONVERSION AND LIEN TERMINATION
AGREEMENT 

 

This Debt Conversion
and Lien Termination Agreement (this “Agreement”) is made and entered into as of January 24, 2019 by and among
by and between Blonder Tongue Laboratories, Inc., a Delaware corporation (the “Company”), R.L. Drake Holdings,
LLC, a Delaware limited liability company and wholly-owned subsidiary of the Company (“Drake” and, collectively
with the Company, “Borrower”), Robert J. Pallé (“RJP”) and Carol M. Pallé (collectively,
“Initial Lenders”), and Steven L. Shea, and James H. Williams (collectively, the “Supplemental Lenders”;
and together with the Initial Lenders, collectively, the “Lenders”), and Robert J. Pallé, as Agent for
the Lenders (in such capacity, the “Agent”). Capitalized terms used herein and not otherwise defined shall have
the meanings ascribed thereto in the Loan Agreement (defined below).

 

BACKGROUND

 

Borrower, the Lenders
and Agent are parties to a certain Amended and Restated Senior Subordinated Convertible Loan and Security Agreement, dated as of
March 28, 2016, as amended by that certain First Amendment to Amended and Restated Senior Subordinate Convertible Loan and Security
Agreement, dated as of March 21, 2017 (the “First Amendment”), as the same may be further amended, restated,
replaced and/or modified from time to time (the “Loan Agreement”), pursuant to which the Lenders provided
the Borrower with Commitments to lend Borrower up to $750,000 in the form of Term Loans.

 

The obligations of
Borrower to pay, satisfy and discharge the obligations under the Loan Agreement are secured by security interests in and liens
upon the Collateral (including, without limitation, (i) a certain Mortgage and Security Agreement recorded against the Mortgaged
Property in favor of Robert J. Pallé and Carol M Pallé, jointly and severally, dated February 11, 2016 and recorded
on March 11, 2016, in Middlesex County Mortgage Book 16286, page 47, (the “Pallé Mortgage”) and (ii)
a certain Amended and Restated Mortgage and Security Agreement recorded against the Mortgaged Property, in favor of Robert J. Pallé,
as agent, dated March 28, 2016, and recorded on May 10, 2016, in Middlesex County Mortgage Book 16344, page 480 (the “Agent
Mortgage”, and together with the Pallé Mortgage, the “Mortgages”). The Agent Mortgage, by its
terms amended and restated the Pallé Mortgage. The Loan Agreement, and the Mortgages, together with all other agreements,
documents and instruments related thereto, are collectively referred to as the “Loan Documents”.

 

Prior to the date hereof,
(i) the Initial Lenders converted 100% of the Accreted Principal Amount of the Tranche A Term Loan and 100% of the Accreted Principal
Amount of the portion of the Tranche B Term Loan advanced by the Initial Lenders, into shares of Common Stock pursuant to Section
4.4 of the Loan Agreement, and (ii) James H Williams converted 100% of the Accreted Principal Amount of the portion of the Tranche
B Term Loan advanced by him into shares of Common Stock pursuant to Section 4.4 of the Loan Agreement.

 

As of the date hereof,
(i) Borrower remains indebted to Steven L. Shea (“Shea”) for 100% of the Accreted Principal Amount of the Tranche
B Term Loan advanced by him in the original principal amount of $100,000 (the “Shea Tranche B Term Loan”), and
(ii) the Initial Lenders remain obligated to make further advances to Borrower pursuant to the Tranche C Commitment, up to the
Undrawn Tranche C Availability, which as of the date hereof is $250,000.

 

The Company has entered
into an agreement of sale for the sale of the Mortgaged Property (the “Mortgaged Property Sale”) and in connection
therewith (i) Borrower will fully pay satisfy and discharge the outstanding Accreted Principal Amount of the Shea Tranche B Term
Loan, unless sooner converted into shares of Common Stock by Shea pursuant to Section 4.4 of the Loan Agreement, (ii) the Tranche
C Commitment will be terminated, and (iii) all liens and security interests in the Collateral, including, without limitation the
Mortgages, will be terminated and released. The date on which the Mortgaged Property Sale is consummated is referred to herein
as the “Closing Date” and the consummation of the sale of the Mortgaged Property is referred to herein as the
“Closing”.

 

Debt
Conversion and Lien Termination Agreement

 

    -1- 

     

    

 

Shea has submitted
a Notice of Conversion to the Company, a copy of which is attached hereto as Exhibit A (the “Shea Notice
of Conversion”), which by its terms is contingent upon and will be effective contemporaneously with, the Closing.

 

NOW, THEREFORE, in
consideration of the premises set forth in the Background Section hereof, for the sum of $10.00 in hand paid, and for other good
and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, , the parties hereto, intending to be
legally bound, agree as follows:

 

1. As of and
immediately prior to the Closing Date, the only outstanding Lender Indebtedness is the Accreted Principal Amount of the Shea
Tranche B Term Loan.

 

2.
Contemporaneously with the Closing (i) pursuant to the Shea Notice of Conversion, the Accreted Principal Balance of the Shea
Tranche B Term Loan will be converted into shares of Common Stock in accordance with the provisions of Section 4.4 of the
Loan Agreement and the Closing Date will be deemed to be the Conversion Date, (ii) the Tranche C Commitment will be
automatically terminated and the Undrawn Tranche C Availability will cease to be available for borrowing, (iii) all of the
obligations arising under or in connection with the Loan Documents (other than those obligations which survive termination of
the Loan Documents as provided in the Loan Documents or except as otherwise herein provided) will be deemed fully paid,
satisfied and discharged, and (iv) all liens and security interests of any kind, character or nature granted by Borrower to
Agent and the Lenders in the property of Borrower, including, without limitation, the Mortgages, will be terminated and
released of record.

 

3.
Contemporaneously with the Closing, Borrower will be authorized to prepare and file any UCC-3 termination statements,
terminating, of record, the security interests perfected thereby, and any other documents or instruments necessary to
terminate any other liens previously filed, recorded or registered by Agent or the Initial Lenders with respect to the Lender
Obligations against Borrower or its assets, including without limitation, filing of the Discharge of Mortgage in the form
attached hereto as Exhibit B, with respect to the Mortgages.

 

4. Borrower
shall be responsible for all costs and expenses in connection with the termination of the aforesaid financing statements and all
release and termination documentation.

 

5. This
Agreement may be executed in several counterparts (and by each party on a separate counterpart), each of which when so executed
and delivered shall be an original, but all of which together shall constitute one agreement.

 

6. Borrower
acknowledges and agrees that it does not have any claims, suits or causes of action against Agent or Lenders and hereby remises,
releases and forever discharges Agent and Lenders from any claims, suits or causes of action of any nature whatsoever, at law or
in equity or otherwise, of every kind and character which Borrower ever had, now have or may hereafter have, known or unknown,
foreseen or unforeseen, upon or by reason of any matter, cause or thing whatsoever, from the beginning of the world to the date
hereof, arising out of the Loan Agreement, the Loan Documents and the transactions referenced therein.

 

7. This
Agreement shall be governed by, and construed (both as to validity and performance) and enforced in accordance with, the laws of
the State of New Jersey without regard to the principles thereof relating to the conflict or choice of laws.

 

Debt
Conversion and Lien Termination Agreement

 

    -2- 

     

    

 

IN WITNESS
WHEREOF, each of the parties has executed this Agreement as of the date first written above.

 

	 	BLONDER TONGUE LABORATORIES, INC.
	 	 
	 	By:	
                         
	 	
         
	Eric Skolnik, Senior Vice President/ Chief Financial
Officer:

	 	 
	 	R.L. DRAKE HOLDINGS, LLC
	 	 
	 	By:	

	 	
         
	Eric Skolnik, Senior Vice President/ Chief Financial
Officer:

	 	

	 	 
	 	ROBERT J. PALLÉ, as Agent
	 	

	 	 
	 	ROBERT J. PALLÉ, as a Lender
	 	

	 	 
	 	CAROL M. PALLÉ, as a Lender
	 	
        

	 	 
	 	
        STEVEN L. SHEA, as a Lender

	 	 
	 	 
	 	JAMES H. WILLIAMS, as a Lender

 

Debt
Conversion and Lien Termination Agreement

 

    -3- 

     

    

 

Exhibit A

Shea Notice of Conversion

 

Reference is made to that certain Amended
and Restated Senior Subordinated Convertible Loan and Security Agreement, by and among Blonder Tongue Laboratories, Inc., a Delaware
corporation (the “Company”), R.L. Drake Holdings, LLC, a Delaware limited liability company and wholly-owned
subsidiary of the Company (“Drake” and, collectively with the Company, “Borrower”), Robert
J. Pallé (“RJP”) and Carol M. Pallé (collectively, “Initial Lenders”), and
Steven L. Shea, and James H. Williams (collectively, the “Supplemental Lenders”; and together with the Initial
Lenders, collectively, the “Lenders”), and Robert J. Pallé, as Agent for the Lenders (in such capacity,
the “Agent”), dated as of March 28, 2016, as amended by that certain First Amendment to Amended and Restated
Senior Subordinate Convertible Loan and Security Agreement, dated as of March 21, 2017 (the “First Amendment”),
as the same may be further amended, restated, replaced and/or modified from time to time (the “Loan Agreement”).
Capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Loan Agreement.

 

Reference is also made to that certain Debt Conversion and Lien
Termination Agreement, dated on or about the date hereof, among the undersigned, Borrower, Agent and the Lenders (the “Debt
Conversion and Lien Termination Agreement”), to which a copy of this Notice of Conversion is appended.

 

Pursuant to and in accordance with Section
4.4 of the Loan Agreement, and further subject to the Debt Conversion and Lien Termination Agreement, the undersigned hereby
submits this Notice of Conversion with regard to 100% of the Accreted Principal Amount of the Tranche B Term Loan advanced by the
undersigned, in the original principal amount of $100,000; provided however, that this Notice of Conversion is subject
to and contingent upon the contemporaneous consummation of the sale by the Company of its manufacturing facility located at One
Jake Brown Road, Old Bridge New Jersey.

 

	By:	 	 
	 	Steven L. Shea	 

 

Dated : January __, 2019

 

Debt
Conversion and Lien Termination Agreement

 

    -4- 

     

    

 

Exhibit B

Discharge
of Mortgage.

[To be attached]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt
Conversion and Lien Termination Agreement

 

    -5-

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