Document:

Exhibit

Exhibit 10.2
BLUELINX HOLDINGS INC.
2016 AMENDED AND RESTATED LONG-TERM INCENTIVE PLAN

STOCK APPRECIATION RIGHTS AGREEMENT

THIS  STOCK  APPRECIATION  RIGHTS  AGREEMENT   (the  “Agreement”) is entered into as of the     day of     , 2016 by and between BLUELINX HOLDINGS INC., a Delaware corporation (the “Company”), and the employee named above (the “Participant”).

W I T N E S S E T H:

WHEREAS, the Company previously adopted the BlueLinx Holdings Inc. 2016 Amended and Restated Long-Term Incentive Plan (the “Plan”);

WHEREAS, the Plan provides for the grant of Stock Appreciation Rights (“SARs”);

WHEREAS, the Participant is a key employee of the Company whose services are important to the success and growth of the business of the Company;

WHEREAS, the Company wishes to give suitable recognition to the Participant’s services and to further stimulate the Participant’s efforts by giving the Participant a direct interest in the performance of the Company;

WHEREAS, as of the date hereof, the Compensation Committee of the Board of Directors of the Company (or its designee) (the “Committee”) granted the SARs as provided herein pursuant to the Plan;

NOW, THEREFORE, the parties agree as follows:

		
	1.
	Grant of SARs

1.1 Grant. Subject to the provisions of the Plan, on the grant date specified above (“Grant Date”) the Committee granted to the Participant the number of SARs specified above having the exercise price per SAR specified above (“Exercise Price”), which equals the closing price of a Share on the Grant Date. Each SAR represents the right to receive an amount equal to the excess, if any, on the date of exercise of the Fair Market Value of a Share over the Exercise Price. This grant of SARs is hereinafter called the “Award.”

1.2 Construction. This Agreement shall be construed in accordance and consistent with, and subject to, the provisions of the Plan (the provisions of which are incorporated herein by reference) and, except as otherwise expressly set forth herein, the capitalized terms used in this Agreement shall have the same definitions as set forth in the Plan.

1.3 Condition. The Award is evidenced by this Agreement. If this Agreement is not executed by the Participant, it may be canceled by the Committee.

		
	2.
	Duration

The Award shall be exercised and settled as provided in Section 3; provided, however, that the Award may be terminated or exercised earlier as provided in Section 1.3, Section 4 and Section 6.

		
	3.
	Vesting, Exercise and Payment

3.1 Vesting. Subject to earlier termination of the Award pursuant to Section 1.3 and Section 4 of this Agreement and accelerated vesting and exercise of the Award pursuant to Section 6 of this Agreement, the Award shall vest in full on July 16, 2018 (the “Vesting Date”).

3.2 Exercise. Vested SARs shall be automatically exercised on the Vesting Date. Upon the exercise of the SARs, the Participant shall be entitled to receive an amount (the “Value”) equal to the product of (i) the excess of the Fair Market Value of one Share on the date of exercise over the Exercise Price, multiplied by (ii) the number of SARs exercised.

3.3 Payment. Except as provided in Section 6, payment of the Value shall be made in cash or check in two installments, with the first installment equal to 50% of the Value payable within thirty (30) days following the Vesting Date, and with the second installment equal to 50% of the Value payable in 2019, no later than August 15, 2019.

3.4 No Rights as Stockholder. The Participant shall at no time be deemed to be the holder of, or to have any of the rights of a holder with respect to any Shares on account of the Award.

		
	4.
	Termination of Employment

4.1 Termination for Cause or Voluntary Termination by Participant. If, prior to the Vesting Date, the Participant’s employment with the Company is terminated (i) voluntarily by the Participant, or (ii) by the Company for Cause, all outstanding vested and unvested SARs shall terminate immediately upon the date of the Participant’s termination of employment (as determined by the Committee in good faith in its discretion).

4.2 Termination for Other Reason. If the Participant’s employment with the Company terminates prior to the Vesting Date for any reason other than (i) by the Company for Cause or (ii) voluntarily by the Participant, the Participant shall (A) vest in a prorated number of SARs, calculated based on the number of months the Participant was employed from the Grant Date to the Participant’s termination date, divided by the total number of months between the Grant Date and the Vesting Date, and (B) forfeit the remaining unvested SARs as of the Participant’s termination date. Notwithstanding the immediately preceding sentence, if such Participant’s termination of employment other than for Cause or due to the Participant’s voluntary termination occurs after the date of a Change in Control, the Participant shall vest in all of the SARs subject to this Agreement rather than a prorated number of SARs. The prorated (or, following a Change in Control, full) number of SARs that vest on the Participant’s termination date shall be automatically exercised on the Participant’s termination date, with the Value determined as provided in Section 3.2 and payment of the Value to be made as provided in Section 3.3 or Section 6 subject to the Participant’s continued compliance with any non-compete, non-solicitation or similar agreement with the Company or an Affiliate. If the Participant is a party to a non-compete, non-solicitation or similar agreement with the Company or an Affiliate and the Participant breaches or otherwise fails to comply with such agreement, in addition to all rights the Company or its Affiliate has under such agreement, law or equity, SARS that have not become vested and exercised or for which the Value has not been paid before such breach or failure to comply shall not vest or be exercised, and the Value shall not be paid, and all rights shall be forfeited at such time without any payment therefor.

4.3 Meaning of Termination of Employment. For purposes of this Agreement, employment with an entity other than the Company that is included within the definition of “Employer” in the Plan or service as a member of the Board of Directors of the Company shall be considered employment with the Company. A Participant shall not be deemed to have terminated employment with the Company if the capacity in which the Participant provides service to the Company changes (for example, a change from employee to Director) or if the Participant transfers among the various entities constituting the Employer, so long as there is no interruption in the provision of service by the Participant to the Employer. The determination of whether a Participant has incurred a termination of employment with the Company shall be made by the Committee in its discretion.

4.4 Definition of Cause. “Cause” shall have the meaning specified in (a) the employment agreement between the Participant and the Company or Affiliate if the Participant is a party to an employment agreement that defines Cause and that provides for any severance benefits in connection with a termination of the Participant’s employment, or (b) the BlueLinx Holdings Inc. Executive Severance Plan if the Participant is covered by such plan. If the Participant is not a party to such an employment agreement or such plan, “Cause” shall mean: (i) a material breach of the duties and responsibilities of a Participant to the Company and its Affiliates; (ii) a Participant’s commission of a felony or commission of any misdemeanor involving willful misconduct (other than minor violations such as traffic violations) if such misdemeanor causes material damage to the property, business or reputation of the Company or any of its Affiliates; (iii) acts of dishonesty by a Participant resulting or intending to result in personal gain or enrichment at the expense of the Company or any of its Affiliates; (iv) a material breach of any provision contained in a written agreement between the Participant and the Company or an Affiliate; (v) conduct by a Participant in connection with his or her duties and responsibilities that is fraudulent, unlawful or willful and materially injurious to the Company or any of its Affiliates; (v) a Participant’s failure to cooperate in all material respects, or failure to direct the persons subject to the Participant’s management or direction to cooperate in all material respects with all corporate investigations or independent investigations by the Company or the Board of Directors of the Company, all governmental investigations of the Company or any of its Affiliates, and all orders involving the Participant or the Company (or any of its Affiliates) entered by a court of competent jurisdiction; (vi) a Participant’s material violation of the Company’s Code of Conduct (including as applicable to officers), or any successor codes, all as provided in writing to the Participant; or (vii) a Participant’s engagement in activities prohibited by any non-competition, non-solicitation, intellectual property or confidential information obligation contained in any restrictive covenant agreement to which the Participant and the Company are parties; provided, that, the Participant shall have ten (10) business days following the Company’s written notice of its intention to terminate the Participant’s employment to cure such Cause, if curable, as determined by the Company, in its sole discretion. The determination of “Cause” shall be made by the Committee or its delegate based upon the information provided to it.

4.5 Coordination with Employment Agreement/Severance Plan. In the event of a conflict between the terms of this Agreement and the terms of any offer letter, employment agreement, severance agreement or severance plan under which the Participant may be entitled to benefits, the terms of this Agreement shall control. To the extent necessary, this Agreement shall be deemed an amendment or modification of any such letter, agreement, or plan with respect to the Participant and with respect to this Award. By executing this Agreement, the Participant is also providing written consent to the modification of any conflicting term in such letter, agreement or plan as it pertains to this Award.

		
	5.
	Nontransferability

The Award shall not be transferable other than by will or by the laws of descent and distribution, and during the lifetime of the Participant, the Award shall be exercisable only by the Participant.

		
	6.
	Effect of Change in Control

Upon a Change in Control (that also constitutes a “change in ownership”, “change in effective control” or “change in ownership of a substantial portion of the Company’s assets” within the meaning of Section 409A) that will result in the Company’s common stock ceasing to be publicly traded on an established securities market (a “Qualifying Change in Control”), all outstanding unvested SARs subject to this Award shall become immediately vested and all SARs shall be deemed exercised on the effective date of the Qualifying Change in Control, with payment of the Value to be made in a lump sum no later than 30 days following the date of the Qualifying Change in Control. Upon any other Change in Control, notwithstanding Article 17 of the Plan, the Award, as adjusted pursuant to Section 4.4 of the Plan as applicable, shall not become vested or exercisable upon the Change in Control but shall instead vest and be exercised in accordance with Section 3 above.

		
	7.
	No Right to Continued Employment

Nothing in this Agreement or the Plan shall be interpreted or construed to confer upon the Participant any right with respect to continuance of employment by the Company or any other entity, nor shall this Agreement or the Plan interfere in any way with the right of the Company or any other entity to terminate the Participant’s employment at any time.

		
	8.
	Adjustments

In the event of a change in capitalization of the Company, such as a stock split, the Committee shall make adjustments as necessary to the number of SARs outstanding under this Agreement, the Exercise Price, and the security with respect to which the Value is determined as the Committee determines in its good faith discretion are necessary to reflect such change in capitalization. The adjustments made by the Committee in this regard shall be effective and final, binding and conclusive for all purposes of the Plan and this Agreement.

		
	9.
	Withholding of Taxes

The Company shall have the right to deduct from the payment of any Value to the Participant an amount equal to the federal, state and local income taxes and other amounts as may be required by law to be withheld with respect to such Value.

		
	10.
	Modification of Agreement

This Agreement may be modified, amended, suspended or terminated, and any terms or conditions may be waived, only by a written instrument executed by the parties hereto.

		
	11.
	Severability

Should any provision of this Agreement be held by a court of competent jurisdiction to be unenforceable or invalid for any reason, the remaining provisions of this Agreement shall not be affected by such holding and shall continue in full force in accordance with their terms.

		
	12.
	Section 409A.

This Award and all payments under this Agreement shall at all times be interpreted and administered in compliance with the requirements of Section 409A so as not to subject the Participant to the payment of interest and tax penalties that may be imposed under Section 409A. However, the Company does not guarantee any particular tax outcome or treatment in connection with this Award.

		
	13.
	Governing Law

The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Delaware without giving effect to the conflicts of laws principles thereof.

		
	14.
	Successors in Interest

This Agreement shall inure to the benefit of and be binding upon each successor corporation to the Company. This Agreement shall inure to the benefit of the Participant’s legal representatives. All obligations imposed upon the Participant and all rights granted to 

the Company under this Agreement shall be final, binding and conclusive upon the Participant’s heirs, executors, administrators and successors.

		
	15.
	Resolution of Disputes

Any dispute or disagreement which may arise under, or as a result of, or in any way relate to, the interpretation, construction or application of this Agreement shall be determined by the Committee. Any determination made hereunder shall be final, binding and conclusive on the Participant and the Company for all purposes.

		
	16.
	Counterparts

This Agreement may be exercised in a number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

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

BLUELINX HOLDINGS INC.

By:             Name:        Title:         

By signing below, Participant hereby accepts the Award subject to all its terms and provisions and agrees to be bound by the terms and provisions of the Plan. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee responsible for administration of the Plan, upon any questions arising under the Plan. Participant authorizes the Company to withhold, in accordance with applicable law, from any compensation payable to him or her, any taxes required to be withheld by federal, state or local law as a result of the grant, existence or exercise of the Award.

PARTICIPANT

Printed Name:blonderex10to8k060316.htm

EXHIBIT 10.1

 

 

FIFTEENTH AMENDMENT TO REVOLVING CREDIT,

TERM LOAN AND SECURITY AGREEMENT

THIS FIFTEENTH AMENDMENT TO REVOLVING CREDIT, TERM LOAN AND SECURITY AGREEMENT (the “Agreement”) is entered into as of June 1, 2016, by and among BLONDER TONGUE LABORATORIES, INC., a corporation organized under the laws of the State of Delaware (“BTL”), R. L. DRAKE HOLDINGS, LLC, a limited liability company organized under the laws of the State of Delaware (“RL Drake” and collectively with BTL, the “Borrower”), the financial institutions which are now or which hereafter become a party hereto (collectively, the “Lenders” and individually a “Lender”) and SANTANDER BANK, N.A. (formerly known as Sovereign Bank, N.A.) (“Santander”), as agent for Lenders (Santander, in such capacity, the “Agent”).

 

RECITALS

 

Whereas, the Borrower and the Lenders entered into a Revolving Credit, Term Loan and Security Agreement dated August 6, 2008, as amended by that certain First Amendment to Revolving Credit Term Loan and Security Agreement dated January 14, 2011, that certain Second Amendment to Revolving Credit Term Loan and Security Agreement dated February 1, 2012, that certain letter agreement dated August 10, 2012 (constituting the third amendment to the Revolving Credit, Term Loan and Security Agreement), that certain Fourth Amendment to Revolving Credit, Term Loan and Security Agreement dated March 27, 2013, that certain Fifth Amendment to Revolving Credit, Term Loan and Security Agreement dated November 13, 2013, that certain Sixth Amendment to Revolving Credit, Term Loan and Security Agreement dated March 28, 2014, that certain Seventh Amendment to Revolving Credit, Term Loan and Security Agreement dated January 21, 2015, that certain Eighth Amendment to Revolving Credit, Term Loan and Security Agreement dated May 14, 2015, that certain Ninth Amendment to Revolving Credit, Term Loan and Security Agreement dated August 12, 2015, that certain Tenth Amendment to Revolving Credit, Term Loan and Security Agreement dated October 14, 2015, that certain Eleventh Amendment to Revolving Credit, Term Loan and Security Agreement dated November 14, 2015, that certain Twelfth Amendment to Revolving Credit, Term Loan and Security Agreement dated as of December 16, 2015 and that certain Thirteenth Amendment to Revolving Credit, Term Loan and Security Agreement dated as of February 1, 2016, and that certain Fourteenth Amendment to Revolving Credit, Term Loan and Security Agreement dated as of March 1, 2016, as the same shall be further amended by this Agreement (as may be further amended, restated, replaced and/or modified from time to time, the “Loan Agreement”); and

 

Whereas, the Borrower and the Lenders have agreed to modify the terms of the Loan Agreement as set forth in this Agreement to, among other things, modify the interest rate accrual under the loans set forth in loan agreement, amend certain financial covenants set forth in the Loan Agreement, extend the availability and termination date of the loans under the Loan Agreement, and remove the option to obtain LIBOR Loans under the Loan Agreement.

 

Now, therefore, in consideration of the Lender’s continued extension of credit and the agreements contained herein, the parties agree as follows:

 

AGREEMENT

 

	
1)  

	
ACKNOWLEDGMENT OF BALANCE. The Borrower acknowledges that the most recent statement of account sent to the Borrower with respect to the Obligations is correct.

 

	
2)  

	
MODIFICATIONS.  The Loan Agreement be and hereby is modified as follows:

 

 

	
(A)  

	
The following definition in Section 1.2 of the Loan Agreement is hereby deleted, and is replaced to read as follows:

 

“Additional Availability Period” shall mean the period beginning on the date of the Fourteenth Amendment and ending on the close of business on September 1, 2016.

“Termination Date” shall mean September 1, 2016 or such later date as the Lenders may agree in writing to extend the Termination Date until, without there being any obligation on the part of the Lenders to extend the Termination Date.

 

1

 

  

  

  

 

	
(B)  

	
The following definitions are hereby added to Section 1.2 of the Loan Agreement to read as follows:

 

“Fifteenth Amendment” shall mean that certain Fifteenth Amendment to Revolving Credit, Term Loan and Security Agreement dated the Fourteenth Amendment Closing Date by and among the Borrower, the Lenders and the Agent.

“Fifteenth Amendment Closing Date” shall mean as of June 1, 2016.

“Revolving Interest Rate” shall mean an interest rate per annum equal to the sum of the Index plus one and one-half of one percent (1.50%)

“Term Loan Rate” shall mean an interest rate per annum equal to the sum of the Index plus one and three quarters of one percent (1.75%)

(C)  In order to remove the option to obtain LIBOR Loans, Section 2.2(b) is hereby amended by adding the following language after the last sentence:

“Notwithstanding the foregoing, Borrower will not be permitted to request a LIBOR Loan after the Fifteenth Amendment Closing Date.”

(D)                 Section 2.4 of the Loan Agreement is deleted, and is replaced by a new Section 2.4 to read as follows:

2.4.           Term Loan.  Subject to the terms and conditions of this Agreement, each Lender, severally and not jointly, will make a Term Loan to the Borrower in the sum equal to such Lender’s Commitment Percentage of $4,350,000.  The Term Loan shall be advanced on the Second Amendment Closing Date and shall be, with respect to principal, payable as follows, subject to acceleration upon the occurrence of an Event of Default under this Agreement or termination of this Agreement:  thirty six (36) consecutive monthly principal installments, the first thirty five (35) of which shall be in the amount of $18,125.00 commencing on the first Business Day of March, 2012, and continuing on the first Business Day of each month thereafter, until the Seventh Amendment Closing Date, from and after which date Borrower will continue to pay principal installments in the amount of $18,125.00 on the first Business Day of each month through and including the first Business Day of January, 2016, from and after which date Borrower shall make one (1) interest-only installment in the amount of $14,550.76 on the first Business Day of February, 2016, from and after which date the Borrower will continue to pay principal installments in the amount of $18,125.00 commencing on the first Business Day of March, 2016 and continuing on the first Business Day of each month thereafter, through and including the first Business Day of August, 2016, and a final payment of any unpaid balance of principal and interest shall be due on the first Business Day of September, 2016.  Notwithstanding anything to the contrary herein and/or in any Other Document, all outstanding principal and interest hereunder is due and payable on September 1, 2016.  The Term Loan shall be evidenced by one or more secured promissory notes (collectively, the “Term Note”) in substantially the form attached hereto as Exhibit 2.4.  On the Fifteenth Amendment Closing Date, Borrowers will execute and deliver to Agent the Fifth Amended and Restated Term Note, in the form attached to the Fifteenth Amendment as Exhibit A.  Promptly following the execution and delivery by Borrower of the Fifth Amended and Restated Term Note in the amount of $ 3,481,875.001, which is the principal balance due on the Term Loan as of such date, Agent will mark the original Fourth Amended and Restated Term Note dated March 1, 2016 in the original principal amount of $3,549,166.66 “CANCELLED” and will return the same to Borrower.

 

 

 

  

	
1.  

	
1 This amount represents the Term Loan principal balance after giving effect to the payment of $18,125.00 on June 1, 2016.

 

 

 

 

2

 

 

 

 

 

  

  

  

 

	
(D)

	
Sections 6.5(b) and 6.5(c) of the Loan Agreement are deleted, and are replaced by a new Sections 6.5(b) and 6.5(c) to read as

	
  

	
follows:

(b)                 Balance Sheet Leverage Ratio.  Cause to be maintained a Balance Sheet Leverage Ratio, tested quarterly (as of the last day of each fiscal quarter) on a consolidated basis, at all times of not more than 1.25 to 1.00, with the Balance Sheet Leverage Ratio then adjusted to not more than (i) 1.85 to 1.00 as of December 31, 2015, (ii) 2.00 to 1.00 as of March 31, 2016, and (iii) 2.00 to 1.00 as of June 30, 2016.

(c)                 Minimum EBITDA.  Cause to be achieved EBITDA, tested quarterly (as of the last day of each fiscal quarter) on a consolidated basis, of not less than (i) negative (-) $300,000 as of March 31, 2015 calculated on a trailing three (3) month basis, (ii) negative (-) $700,000 as of June 30, 2015 calculated on a trailing six (6) month basis, (iii) $1,400,000 as of September 30, 2015 calculated on a trailing nine (9) month basis, (iv) negative (-) $3,897,000 as of December 31, 2015 calculated on a trailing twelve (12) month basis, (v) $50,000 as of March 31, 2016 calculated on a trailing three (3) month basis, and (vi) negative (-) $82,000 as of June 30, 2016 calculated on a trailing six (6) month basis.

	
3)  

	
SECRETARY’S CERTIFICATES AND RESOLUTIONS.  By not later than June 10, 2016, the Borrower shall provide the Agent with secretary’s certificates and resolutions, in form and substance acceptable to the Agent, which approve the modification contemplated hereby.

 

	
4)  

	
ACKNOWLEDGMENTS.  The Borrower acknowledges and represents that:

 

(A) the Loan Agreement and Other Documents, as amended hereby, are in full force and effect without any defense, claim, counterclaim, right or claim of set-off;

 

(B) to the best of its knowledge, no default by the Agent or the Lenders in the performance of their duties under the Loan Agreement or the Other Documents has occurred;

 

(C) all representations and warranties of the Borrower contained herein and in the Other Documents are true and correct in all material respects as of this date, except for any representation or warranty that specifically refers to an earlier date;

 

(D) the Borrower has taken all necessary action to authorize the execution and delivery of this Agreement; and

 

(E) this Agreement is a modification of an existing obligation and is not a novation.

 

	
5)  

	
PRECONDITIONS.  As a precondition to the effectiveness of any of the modifications, consents, or waivers contained herein, the Borrower agrees to:

 

(A) provide the Agent with this Agreement, properly executed;

 

(B) pay to the Agent an amendment fee in the amount of $5,000; and

 

(C) pay, promptly upon presentation of an invoice therefor, all other fees and costs incurred by the Lenders in entering into this Agreement, including, but not limited to, all reasonable legal fees incurred by the Agent.

 

	
6)  

	
MISCELLANEOUS.  This Agreement shall be construed in accordance with and governed by the laws of the State of New Jersey, without reference to that state’s conflicts of law principles.  This Agreement and the Other Documents constitute the sole agreement of the parties with respect to the subject matter thereof and supersede all oral negotiations and prior writings with respect to the subject matter thereof.  No amendment of this Agreement, and no waiver of any one or more of the provisions hereof shall be effective unless set forth in writing and signed by the parties hereto.  The illegality, unenforceability or inconsistency of any provision of this Agreement shall not in any way affect or impair the legality, enforceability or consistency of the remaining provisions of this Agreement or the Other Documents.  This Agreement and the Other Documents are intended to be consistent.  However, in the event of any inconsistencies among this Agreement and any of the Other Documents, the terms of this Agreement, then the Loan Agreement shall control.  This Agreement may be executed in any number of counterparts and by the different parties on separate counterparts.  Each such counterpart shall be deemed an original, but all such counterparts shall together constitute one and the same agreement.

 

 

 

3

 

 

  

  

  

	
7)  

	
DEFINITIONS.  The terms used herein and not otherwise defined or modified herein shall have the meanings ascribed to them in the Loan Agreement.  The terms used herein and not otherwise defined or modified herein or defined in the Loan Agreement shall have the meanings ascribed to them by the Uniform Commercial Code as enacted in New Jersey.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

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IN WITNESS WHEREOF, the undersigned have signed and sealed this Agreement the day and year first above written.

 

	
ATTEST:

 

 

By: /s/ Eric Skolnik

Name:  ERIC SKOLNIK

Title:   Assistant Secretary

 

 

WITNESS:

 

 

By: /s/ Eric Skolnik

Name:  ERIC SKOLNIK

Title:    Secretary

 

 

 

 

 

 

 

 

 

 

 

 

	  	
BLONDER TONGUE LABORATORIES, INC.

 

 

By: /s/ Robert J. Pallé 

Name:  ROBERT J. PALLÉ

Title:    Chief Executive Officer

 

 

R. L. DRAKE HOLDINGS, LLC

 

 

By: /s/ Robert J. Pallé 

Name:  ROBERT J. PALLÉ

Title:    President

 

 

 

SANTANDER BANK, N.A.,

(formerly known as Sovereign Bank, N.A.),

as Lender and as Agent

 

 

By: /s/ John R. Giangrossi 

Name:  JOHN R. GIANGROSSI

Title:  Vice President

 

 

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EXHIBIT A

FIFTH AMENDED AND RESTATED TERM NOTE

	
$3,481,875.00

	
June 1, 2016

	  	
Newtown, Pennsylvania

This Fifth Amended and Restated Term Note (this “Note”) is executed and delivered under and pursuant to the terms of that certain Revolving Credit, Term Loan and Security Agreement dated August 6, 2008 (as amended, restated, supplemented, extended and/or modified from time to time, the “Loan Agreement”) by and among BLONDER TONGUE LABORATORIES, INC., a corporation organized under the laws of the State of Delaware (“BTL”), R. L. DRAKE HOLDINGS, LLC, a limited liability company organized under the laws of the State of Delaware (“RL Drake” and collectively with BTL, the “Borrower”), the financial institutions which are now or which hereafter become a party hereto (collectively, the “Lenders” and individually a “Lender”) and SANTANDER BANK, N.A., formerly known as Sovereign Bank, N.A. (“Santander”), as agent for Lenders (in such capacity, “Agent”).

FOR VALUE RECEIVED, Borrower promises to pay in lawful monies of the United States of America to the order of Santander, at the office of the Agent located at 3 Terry Drive, Newtown, Pennsylvania 18940 or at such place as the Agent may from time to time designate in writing, the principal sum of Three Million Four Hundred Eighty One Thousand Eight Hundred Seventy Five AND 00/100 DOLLARS ($3,481,875.00), together with interest thereon, as hereinafter provided, computed from the date hereof, to be paid in three (3) consecutive monthly principal installments, the first two (2) of which shall be in the amount of $18,125.00 plus interest commencing on the first Business Day of July, 2016, and continuing on the first Business Day of each month thereafter, with a third (3rd) and final payment of any unpaid balance of principal and interest payable on the first Business Day of September, 2016, and subject to mandatory prepayment and acceleration upon the occurrence of an Event of Default under the Loan Agreement or earlier termination of the Loan Agreement pursuant to the terms thereof.  Notwithstanding anything to the contrary herein, in the Loan Agreement and/or in any Other Document, all outstanding principal and interest hereunder is due and payable on the Termination Date.

1.  The unpaid principal amount from time to time outstanding hereunder shall bear interest at the rate of interest per annum equal to the Term Loan Rate as more fully described in the Loan Agreement, such rate of interest computed for actual number of days elapsed on the basis of a year of 360 days, in an amount not to exceed the maximum rate permitted by law.

2.  Interest on this Note is payable in accordance with the Loan Agreement.  All payments, howsoever designated by the undersigned, are to be applied first on account of interest on the unpaid principal balance of this Note, and the remainder of such payments, if any, on account of the unpaid principal balance.

 

 

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3.  In the event that any payment shall not be received by the Agent within ten (10) days of the due date, the undersigned shall, to the extent permitted by law, pay the Lenders a late charge of five percent (5%) of the overdue payment not to exceed $2,500.00.  Any such late charge assessed is immediately due and payable.

4.  This Note is a “Term Note” referred to in the Loan Agreement.  This Note entitles the Lenders and the undersigned to all benefits set forth in the Loan Agreement including, but not limited to, all the provisions for the acceleration of the maturity of this Note and all other rights and remedies set forth therein.

5.  This Note is subject to mandatory prepayment pursuant to Section 2.11 of the Loan Agreement, and may be voluntarily prepaid, in whole or in part, in each case, on the terms and conditions set forth in the Loan Agreement.

6.  Upon nonpayment of this Note at its stated or accelerated maturity, in addition to such other and further rights and remedies provided by law or the Loan Agreement, the Lenders may collect interest from the date of such maturity on the principal balance owing hereon at the Default Rate.

7.  As security for the payment of all Obligations, as such term is defined in the Loan Agreement, of the undersigned to the Lenders (including this Note and any renewals, extensions or modifications thereof), the Lenders have been granted a security interest in the Collateral, as such term is defined in the Loan Agreement.

8.  All terms of the Loan Agreement are incorporated herein by reference and in the event of any inconsistency between the terms of the Loan Agreement and the terms hereof, the terms of the Loan Agreement shall prevail.  All capitalized terms not specifically defined herein shall have the meaning ascribed to them in the Loan Agreement.

9.  All parties hereto whether makers, endorsers, guarantors, or otherwise, hereby waive demand, notice of non-payment, protest, notice of protest, presentment and all other notices of any kind whatsoever, and do hereby consent that without notice to and without releasing the liability of any party hereto, the obligations of any party may from time to time, in whole or in part, be renewed, extended, modified, accelerated, compromised, settled or released by the Lenders.

10.  No delay or omission on the part of the Lenders in exercising any right hereunder shall operate as a waiver of such right or any other right under this Note.

11.  If this Note is referred to an attorney (whether or not a salaried employee of the Lenders) for collection, each party liable for the payment hereof as maker, endorser or guarantor agrees that reasonable attorney’s fees plus costs, shall be added to such amount of this Note and shall be payable as part thereof.  Reasonable attorney’s fees may be collectible from any collateral to the extent permitted under the Loan Agreement and the Bankruptcy Act or other law.

 

 

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12.  This Note is intended to amend, restate and replace a certain Fourth Amended and Restated Term Note issued by Borrower in favor of the Lenders dated March 1, 2016 in the original principal amount of $3,549,166.66.  The original principal amount of this Note represents the remaining principal balance of the Term Loan as of the date hereof, after giving effect to the payment by Borrower of $18,125.00 of principal on the date hereof.  This Note is not a novation.

13.  The provisions herein contained shall bind the undersigned and its successors and assigns and inure to the benefit of the holder and its successors and assigns.

14.  Lenders may at any time pledge or assign all or any portion of their rights under the Loan Agreement and the Other Documents (including any portion of this Note) to any of the twelve (12) Federal Reserve Banks organized under Section 4 of the Federal Reserve Act, 12 U.S.C. Section 341.  No such pledge or assignment or enforcement thereof shall release Lenders from their obligations under the Loan Agreement or any of the Other Documents.

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

IN WITNESS WHEREOF, the undersigned has duly executed this Note on the date first above written.

	
ATTEST:

 

 

/s/ Eric Skolnik

Name:  ERIC SKOLNIK

Title:    Assistant Secretary

 

 

WITNESS:

 

/s/ Eric Skolnik

Name:  ERIC SKOLNIK

Title:  Secretary

	  	
BLONDER TONGUE ABORATORIES, INC.

 

 

By: /s/ Robert J. Pallé

Name:  ROBERT J. PALLÉ

Title:     Chief Executive Officer

 

 

R. L. DRAKE HOLDINGS, LLC

 

 

By: /s/ Robert J. Pallé

Name:  ROBERT J. PALLÉ

Title:    President

 

 

 

 

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