Document:

Exhibit 10.37

 

Execution Copy

 

Amended
and Restated SENIOR SUBORDINATED CONVERTIBLE

LOAN AND SECURITY AGREEMENT

 

THIS AMENDED AND RESTATED
SENIOR SUBORDINATED CONVERTIBLE LOAN AND SECURITY AGREEMENT (this “Agreement”) is made and entered into as of
the 28th day of March, 2016 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”), Steven L. Shea, and James H. Williams, and such other
Persons who may from time to time become party hereto as lenders (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”).

 

BACKGROUND

 

A.           Borrower
and Initial Lenders are party to that certain Senior Subordinated Convertible Loan and Security Agreement dated as of February
11, 2016 (the “Existing Agreement”).

 

B.           The
Parties hereto desire to make certain modifications to the credit accommodations provided under the Existing Agreement, including
an increase in the Term Loan facility currently provided for under the Existing Agreement and the appointment of RJP as Agent for
the benefit of all Lenders, and in furtherance thereof, desire to amend and restate the Existing Agreement and memorialize their
further agreements all as more particularly set forth herein.

 

C.           It
is the intention of the parties hereto that the execution and delivery of this Agreement shall not (except as specifically set
forth herein) impair, modify, or otherwise abrogate any of the rights and obligations of any party to any of the other Loan Documents
and references to the “Agreement” contained in any of the other Loan Documents shall mean and refer to the Existing
Agreement as amended and restated by this Agreement and all obligations of Borrower to Initial Lenders as of the date hereof shall
mean and refer to and constitute obligations of Borrower to Lenders hereunder and to Agent, for the benefit of all Lenders, including,
without limitation, the Initial Advance of $200,000 made to Borrower by Initial Lenders under the Existing Agreement which, as
more particularly set forth in Section 2.1 hereof, shall constitute a portion of the Tranche A Term Loan hereunder.

 

D.           Capitalized
terms used herein will have the meanings set forth therefor in Section 1 of this Agreement.

 

NOW, THEREFORE, in consideration
of the terms and conditions contained herein, and of any extensions of credit now or hereafter made to or for the benefit of Borrower
by Lender, the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.          DEFINITIONS.

 

1.1           Defined
Terms. The following words and phrases as used in capitalized form in this Agreement, whether in the singular or plural,
shall have the meanings indicated:

 

(a)          “Accreted
Principal Amount” means, at any time, the outstanding principal amount of the Term Loan, including the aggregate
amount of all Advances as well as all PIK Interest added thereto.

 

(b)          “Additional
Shares of Common Stock” shall be as defined in Section 4.4(e)(ii).

 

(c)          “Advance”
means any extension of credit by Lenders (or any of them) to Borrower under Section 2.1 of this Agreement.

 

(d)          “Advance
Request” shall be as defined in Section 2.3.

 

     

     

    

 

(e)          “Affiliate”
as to any Person, means (i) each other Person that directly or indirectly through one or more intermediaries, controls, or is controlled
by, or is under common control with, the Person in question and (ii) any person who is an officer, director, member, manager or
partner of (A) such Person, (B) any Subsidiary of such Person, or (C) any Person described in the preceding clause (i).

 

(f)          “Agent”
means RJP, in his capacity as Agent hereunder for Initial Lenders and the other Lenders.

 

(g)          “Aggregate
Tranche A Commitments” means, at any time, the combined Tranche A Commitments of all Tranche A Lenders, all as more
particularly set forth on Schedule 1.1 hereof.

 

(h)          “Aggregate
Tranche B Commitments” means, at any time, the combined Tranche B Commitments of all Tranche B Lenders, all as more
particularly set forth on Schedule 1.1 hereof.

 

(i)          “Aggregate
Tranche C Commitments” means, at any time, the combined Tranche C Commitments of all Tranche C Lenders, all as more
particularly set forth on Schedule 1.1 hereof.

 

(j)          “Basic
Interest Rate” shall be as defined in Section 3.1.

 

(k)          “Borrower”
means the Company and Drake, both individually and collectively (as applicable), and shall include all permitted successors and
assigns of such Persons.

 

(l)          “Business
Day” means any day except a Saturday, Sunday or other day on which money center commercial banks located in New York,
New York are authorized by law to close.

 

(m)          “Cash
Interest” shall be as defined in Section 4.1.

 

(n)          “Collateral”
shall be as defined in Section 5.3.

 

(o)          “Commitment”
means, as to each Lender as of any date of determination, such Lender’s Tranche A Commitment, Tranche B Commitment or Tranche
C Commitment.

 

(p)          “Commitment
Percentage” means, as to each Lender, a fractional amount expressed as a percentage, the numerator of which is the
amount of such Lender’s Commitment and the denominator of which is the aggregate Commitments of all Lenders.

 

(q)          “Commitments”
means, at any time, the sum of, the Aggregate Tranche A Commitments, the Aggregate Tranche B Commitments and the Aggregate Tranche
C Commitments. As of the date hereof, the aggregate Commitments are $750,000.

 

(r)          “Common
Stock” shall be as defined in Section 4.4(a).

 

(s)          “Company”
shall have the meaning given such term in the introductory paragraph of this Agreement and shall include all permitted successors
and assigns of such Person.

 

(t)          “Contingent
Convertible Portion” shall be as defined in Section 4.4(b).

 

(u)          “Contract
Period” means the period of time commencing on the date hereof and continuing through and including the Final Maturity
Date, subject to acceleration as provided herein following any Event of Default.

 

(v)         “Conversion
Date” shall be as defined in Section 4.4(a).

 

(w)          “Corporation”
means a corporation, partnership, limited liability company, trust, unincorporated organization, association, joint stock company
or joint venture.

 

    	 	- 2 -	 

     

    

 

(x)          “Default”
means any event which with the giving of notice, passage of time or both, could constitute an Event of Default.

 

(y)          “Drake”
shall have the meaning given such term in the introductory paragraph of this Agreement and shall include all permitted successors
and assigns of such Person.

 

(z)          “Effective
Date” means the date that Agent receives an original (or faxed or electronic copy) of (i) this Agreement, duly authorized,
executed and delivered by Borrower, Agent and Lenders; (ii) the Mortgage; (iii) the Subordination Agreement; and (iv) a UCC-3 Amendment
naming Agent as the secured party with respect to any UCC heretofore filed by the Initial Lenders, and such date shall be the date
set forth on the first page of this Agreement.

 

(aa)         “Effective
Price” shall be as defined in Section 4.4(e)(ii).

 

(bb)         “Event
of Default” means each of the events specified in Section 9.1.

 

(cc)         “Existing
Obligations” shall mean all “Obligations” owing by Borrower under, and as such quoted term is defined
in, the Existing Agreement immediately prior to the effectiveness of this Agreement.

 

(dd)         “Final
Maturity Date” shall be as defined in Section 4.2.

 

(ee)         “GAAP”
means generally accepted accounting principles in the United States of America, in effect from time to time, consistently applied
and maintained.

 

(ff)         
“IL Conversion Price” shall mean $0.54 per share of Common Stock, subject to adjustment as contemplated
by Section 4.4(e).

 

(gg)         “Indebtedness”,
as applied to a Person, means:

 

(i)          all
items (except items of capital stock or of surplus) which in accordance with GAAP would be included in determining total liabilities
as shown on the liability side of a balance sheet of such Person as at the date as of which Indebtedness is to be determined;

 

(ii)         to
the extent not included in the foregoing, all indebtedness, obligations, and liabilities secured by any mortgage, pledge, lien,
conditional sale or other title retention agreement or other security interest to which any property or asset owned or held by
such Person is subject, whether or not the indebtedness, obligations or liabilities secured thereby shall have been assumed by
such Person; and

 

(iii)        to
the extent not included in the foregoing, all indebtedness, obligations and liabilities of others which such Person has directly
or indirectly guaranteed, endorsed (other than for collection or deposit in the ordinary course of business), sold with recourse,
or agreed (contingently or otherwise) to purchase or repurchase or otherwise acquire or in respect of which such Person has agreed
to supply or advance funds (whether by way of loan, stock purchase, capital contribution or otherwise) or otherwise to become directly
or indirectly liable.

 

(hh)         “Interest
Payment Date” shall be as defined in Section 4.1.

 

(ii)         “Initial
Advance” means $200,000, comprised of the sum of the Advances by the Initial Lenders to Borrower of (i) $100,000
on December 24, 2015, plus (ii) $100,000 on February 11, 2016, all of which constitutes a portion of the Tranche A Term Loan.

 

(jj)         “Lender
Indebtedness” means all Indebtedness of Borrower to Agent and Lenders, whether now or hereafter owing or existing,
including, without limitation, all obligations under the Loan Documents, all other obligations or undertakings now or hereafter
made by or for the benefit of Borrower to or for the benefit of Agent or Lenders under any other agreement, promissory note or
undertaking now existing or hereafter entered into by Borrower with Agent or Lenders, together with all interest and other sums
payable in connection with any of the foregoing.

 

    	 	- 3 -	 

     

    

 

(kk)         “Lender
Parties” means, individually and collectively, Agent and Lenders

 

(ll)         “Lenders”
shall have the meaning given such term in the introductory paragraph of this Agreement and shall include all permitted successors
and assigns of such Person(s).

 

(mm)         “Loan
Documents” means this Agreement, the Subordination Agreement, the Mortgage and all other documents, executed or delivered
by Borrower or any other Person pursuant to this Agreement or in connection herewith, as they may be amended, modified or restated
from time to time.

 

(nn)         “Mortgage”
means that certain Amended and Restated Mortgage and Security Agreement, dated on or about the date of this Agreement, between
the Company and Agent, granting to Agent, for the benefit of Lenders, a mortgage lien on the Mortgaged Property.

 

(oo)         “Mortgaged
Property” means and refers to the premises situate at One Jake Brown Road, Old Bridge NJ 08857 and all improvements
thereon and all rights, licenses, permits and approvals relating thereto, together with an assignment of all rents and leases related
thereto.

 

(pp)         “Notice
of Conversion” shall be as defined in Section 4.4(a).

 

(qq)         “NYSE
MKT Threshold” shall be as defined in Section 4.4(b).

 

(rr)         “Percentage
Share” means, with respect to each Lender, such Lender’s Percentage Share of the Tranche A Term Loan, the Tranche
B Tem Loan or the Tranche C Term Loan, as the case may be, as set forth on Schedule 1.1 hereto

 

(ss)         “Person”
means an individual, a Corporation or a government or any agency or subdivision thereof, or any other entity.

 

(tt)         “PIK
Interest” shall be as defined in Section 4.1.

 

(uu)         “Pro
Rata Percentage” means, as to each Lender, a fraction, expressed as a percentage, the numerator of which is the principal
amount of the Advances then owed to such Lender hereunder and the denominator of which is the principal amount of Advances then
owed to all Lenders hereunder, as reflected by Agent’s records).

 

(vv)         “Required
Lenders” means (i) those Lenders holding at least eighty-one percent (81%) of the total Commitments or (ii) in the
event that the Commitments of the Lenders hereunder have terminated, those Lenders holding at least eighty-one percent (81%) of
the outstanding principal amount of the Term Loan outstanding hereunder, as reflected by Agent’s records; except,
that, if RJP resigns as an officer of Company or is removed as an officer of the Company by the Company’s Board of
Directors for cause, Required Lenders shall mean either (i) all of the Supplemental Lenders, or (ii) the Initial Lenders and at
least one Supplemental Lender.

 

(ww)         “Requested
Advance Date” shall be as defined in Section 2.3.

 

(xx)        “RJP
Termination Date” shall be as defined in Section 16.9(b).

 

(yy)         “Santander”
means Santander Bank, N.A.

 

(zz)         “Santander
Credit Agreement” means the Revolving Credit, Term Loan and Security Agreement dated August 6, 2008 between Borrower
and Santander, as amended.

 

    	 	- 4 -	 

     

    

 

(aaa)        “Senior
Indebtedness” means (i) the Indebtedness of Borrower and/or one or more of Borrower’s Affiliates owed to Santander
under the Santander Credit Agreement, (ii) any Indebtedness of Borrower and/or one or more of Borrower’s Affiliates that
may arise under, out of, or in connection with any obligation of any of such entities to commercial lenders for money advanced
to any of such entities and (iii) any renewal, replacement or refinancing of any of the foregoing, in each case whether or not
such Indebtedness is expressly subordinated hereto.

 

(bbb)        “Senior
Indebtedness Debt Cap” means the sum of (a) the aggregate principal amount of Senior Indebtedness (including the
undrawn or unreimbursed amount of all letters of credit constituting Senior Indebtedness up to the sum of Six Million Dollars ($6,000,000)
plus (b) the amount of all overadvances by the holder of Senior Indebtedness, up to $1,000,000; plus (c) 85% of all
Eligible Receivables, plus (d) 50% of all Eligible Inventory (as such terms are defined in the Santander Credit Agreement
or any subsequent credit agreement memorializing Senior Indebtedness) acquired in connection with any acquisition by Borrower of
the assets of a person that is not a Borrower; plus (e) amounts in respect of accrued, unpaid interest, fees and
expenses attributable to the items described in clauses (a) through (d) above.

 

(ccc)        “SL
Conversion Price” shall mean $0.54]1
per share of Common Stock, subject to adjustment as contemplated by Section 4.4(e)

 

(ddd)        “Subordination
Agreement” means the Amended and Restated Subordination Agreement dated on or about the date hereof between Agent
(for itself and on behalf of all Lenders) and Santander or between Agent and any subsequent holder of Senior Indebtedness.

 

(eee)        “Subsidiary”
means a corporation or limited liability company (i) which is organized under the laws of the United States or any State thereof,
or any other county or jurisdiction, (ii) which conducts substantially all of its business and has substantially all of its assets
within the United States and (iii) of which more than fifty percent (50%) of its outstanding voting stock of every class (or other
voting equity interest) is owned by Borrower or one or more of its Subsidiaries.

 

(fff)        “Supplemental
Interest” means cash interest at the rate of five percent (5%) per annum, paid in addition to the Base Rate Interest
on the outstanding amount of the applicable Lender’s Commitment Percentage of the Contingent Convertible Portion of the Term
Loan, in accordance with Section 3.1.

 

(ggg)        “Supplemental
Interest Commencement Date”, shall be as defined in Section 4.4(b).

 

(hhh)        “Term
Loan” means, collectively, the Tranche A Term Loan, the Tranche B Term Loan and the Tranche C Tem Loan.

 

(iii)        “Tranche
A Commitment” means the Tranche A Commitment of each Tranche A Lender as set forth on Schedule 1.1 hereto.

 

(jjj)        “Tranche
A Lenders” means each Lender with a Tranche A Commitment as set forth on Schedule 1.1 hereto.

 

(kkk)        “Tranche
A Term Loan” shall be as defined in Section 2.1.

 

(lll)        “Tranche
B Commitment” means the Tranche B Commitment of each Tranche B Lender as set forth on Schedule 1.1 hereto.

 

 

 

1 The
SL Conversion Price has been determined based on the greater of (a) 110% of the average closing price of the Common Stock on
the NYSE MKT during the ten trading days ended on the earlier of (i) the business day immediately preceding the date the
Supplemental Lenders’ agreement to provide the financing pursuant to this agreement is publicly announced and (ii) the
business day immediately preceding the date of closing, and (b) fifty four cents ($0.54).

 

    	 	- 5 -	 

     

    

 

(mmm)        “Tranche
B Lenders” means each Lender with a Tranche B Commitment as set forth on Schedule 1.1 hereto.

 

(nnn)        “Tranche
B Term Loan” shall be as defined in Section 2.1.

 

(ooo)        “Tranche
C Commitment” means the Tranche C Commitment of each Tranche C Lender as set forth on Schedule 1.1 hereto.

 

(ppp)        “Tranche
C Lenders” means each Lender with a Tranche C Commitment as set forth on Schedule 1.1 hereto.

 

(qqq)        “Tranche
C Term Loan” shall be as defined in Section 2.1.

 

(rrr)        “Undrawn
Tranche A Availability” means, as of any date of measurement, an amount equal to (i) $300,000, minus (ii)
the aggregate principal amount of all Tranche A Loans which have been made as of such date. As of the Effective Date, the Undrawn
Tranche A Availability is $0.00.

 

(sss)        “Undrawn
Tranche B Availability” means, as of any date of measurement, an amount equal to (i) $200,000, minus (ii)
the aggregate principal amount of all Tranche B Loans which have been made as of such date. As of the Effective Date, the Undrawn
Tranche B Availability is $200,000.

 

(ttt)        “Undrawn
Tranche C Availability” means, as of any date of measurement, an amount equal to (i) $250,000, minus (ii)
the aggregate principal amount of all Tranche C Loans which have been made as of such date. As of the Effective Date, the Undrawn
Tranche C Availability is $250,000.

 

1.2           Accounting
Terms. As used in this Agreement, or any certificate, report or other document made or delivered pursuant to this Agreement,
accounting terms not defined elsewhere in this Agreement shall have the respective meanings given to them under GAAP.

 

1.3           UCC
Terms. All terms used herein and defined in the Uniform Commercial Code as in effect in the State of Delaware from time
to time shall have the meanings given therein unless otherwise defined herein.

 

2.          THE
TERM LOAN; USE OF PROCEEDS.

 

2.1           Term
Loan.

 

(a)          Agent
and Lenders will establish for Borrower, during the Contract Period and subject to the terms and conditions hereof, a convertible,
delayed draw term loan facility consisting of (i) a term loan in the principal amount of $300,000 (“Tranche A Term Loan”),
which Tranche A Term Loan has heretofore been funded in full by the Initial Lenders in their Percentage Share under the Existing
Agreement and constitutes Lender Indebtedness hereunder, which is due and owing by Borrower as of the date hereof without offset,
defense or counterclaim, (ii) a delayed draw term loan in the principal amount of $200,000 (“Tranche B Term Loan”),
which Tranche B Term Loan shall be made in accordance with Section 2.1(b), and (iii) a delayed draw term loan in the aggregate
principal amount of $250,000 (“Tranche C Term Loan”), which Tranche C Term Loan shall be made in accordance
with Section 2.1(c). The Term Loan is not a revolving loan, so that if Borrower repays all or any portion of the Term Loan
at any time, such amount so repaid may not be re-borrowed. The Term Loan shall be subject to all terms and conditions set forth
in all of the Loan Documents, which terms and conditions are incorporated herein. Notwithstanding anything to the contrary contained
in this Section 2.1, no Lender will be required or have any obligation to make any extensions of credit hereunder if a Default
then exists or could reasonably be expected to result by virtue of the making thereof. Notwithstanding anything to the contrary
contained herein, in no event shall Lenders be obligated to make to Borrower, or Borrower be entitled to borrow or receive from
Lenders, any loans, advances or extensions of credit hereunder other than the Term Loan.

 

    	 	- 6 -	 

     

    

 

(b)          Since
as of the Effective Date the Undrawn Tranche A Availability is $0, Borrower shall have the right from time to time, at any time
during the Contract Period, to request that Tranche B Lenders make Advances under the Tranche B Term Loan to Borrower in an amount
not to exceed the then Undrawn Tranche B Availability. In connection with such request, each Tranche B Lender agrees severally
(not jointly and not jointly and severally) to make, in accordance with Section 2.3 below, a Tranche B Term Loan to Borrower
in an amount equal to such Lender’s Percentage Share of such request.

 

(c)          At
any time during the Contract Period, when the Undrawn Tranche B Availability is $0, Borrower shall have the right, from time to
time, to request that Tranche C Lenders make Advances under the Tranche C Term Loan to Borrower in an amount not to exceed the
then Undrawn Tranche C Availability. In connection with each such request, each Tranche C Lender agrees severally (not jointly
and not jointly and severally) to make, in accordance with Section 2.3 below, a Tranche C Term Loan to Borrower in an amount
equal to such Lender’s Percentage Share of such Advance request.

 

2.2           Use
of Proceeds. Borrower agrees to use Advances under the Term Loan for working capital and general corporate purposes.

 

2.3           Method
of Advances. On any Business Day, Borrower may request an Advance by delivering to Agent a written request therefor (each
an “Advance Request”), which Advance Request may be submitted by the Chief Financial Officer of the Company,
subject to the prior approval of the Chief Executive Officer of the Company; provided, however, if (a) the Chief
Executive Officer is unavailable for a period of more than 24 hours from the time an Advance Request is proposed to be delivered
by the Chief Financial Officer or (b) the Chief Executive Officer determines not to approve an Advance Request proposed to be delivered
by the Chief Financial Officer, then under either of such circumstances, the Advance Request proposed by the Chief Financial Officer
may be presented to the Board of Directors of the Company for its consideration and approval (either at a meeting or by consent
in writing of a majority of the Board), which, if given, would supersede any failure of approval or disapproval by the Chief Executive
Officer. Each such request shall specify (i) the amount of the requested Advance, which shall be at least $50,000.00 or, if less,
the current amount of Undrawn Availability, and (ii) the date (the “Requested Advance Date”) upon which Borrower
desires Lenders to fund the Advance, which date shall be at least one (1) Business Day subsequent to Agent’s receipt of the
Advance Request. Any Advance Request made after 1:00 p.m. on any Business Day shall be deemed to be made on the next following
Business Day. Following Agent’s receipt of an Advance Request, Agent will make the requested Advance on the Requested Advance
Date, by transferring immediately available funds via wire transfer or ACH transfer to an account previously designated to Agent
in writing by Borrower.

 

3.          INTEREST.

 

3.1           Interest
Rate. Interest on outstanding Advances will accrue from the date of advance until final payment (or conversion, as contemplated
by Section 4.4 below) thereof, at the rate of twelve percent (12%) per annum (the “Basic Interest Rate”),
which interest may be paid as Cash Interest or as PIK Interest, in the discretion of Borrower, as more fully contemplated by Section
4.1 below. For purposes of clarification, PIK Interest at the Basic Interest Rate shall be deemed to have commenced accruing
on (i) each of the individual Advances comprising the Initial Advance, on the date of each such Advance, (ii) the Advance in the
amount of $50,000 made on February 23, 2016, as of the date of such Advance, and (iii) the Advance in the amount of $50,000 made
on February 25, 2016, as of the date of such Advance. If following receipt by the Company of a Notice of Conversion by any Lender
with respect to such Lender’s Commitment Percentage of the Contingent Convertible Portion of the Term Loan, conversion thereof
into Common Stock has not occurred on or prior to the Supplemental Interest Commencement Date, then Supplemental Interest will
accrue on the outstanding Contingent Convertible portion of such Lender’s Term Loan from the Supplemental Interest Commencement
Date until final payment (or conversion, as contemplated by Section 4.4 below) thereof, as more fully contemplated by Section
4.1 below. Interest will be computed on the basis of a year of 360 days and paid for the actual number of days elapsed.

 

    	 	- 7 -	 

     

    

 

3.2           Limitation
of Interest to Maximum Lawful Rate. In no event will the rate of interest payable hereunder exceed the maximum rate of
interest permitted to be charged by applicable law (including the choice of law rules) and any interest paid in excess of the permitted
rate will be refunded to Borrower. Such refund will be made by application of the excessive amount of interest paid against any
sums outstanding hereunder and will be applied in such order as Agent may determine. If the excessive amount of interest paid exceeds
the sums outstanding, the portion exceeding the sums outstanding will be refunded in cash by Agent, for the account of Lenders.
Any such crediting or refunding will not cure or waive any default by Borrower. Borrower agrees, however, that in determining whether
or not any interest payable hereunder exceeds the highest rate permitted by law, any non-principal payment, including without limitation
prepayment fees and late charges, will be deemed to the extent permitted by law to be an expense, fee, premium or penalty rather
than interest.

 

4.          PAYMENTS
AND CONVERSION.

 

4.1           Interest
Payments. Accrued interest shall be due and payable monthly in arrears on the first day of each calendar month (an “Interest
Payment Date”) commencing on the first day of the first calendar month following the date of the Initial Advance to Borrower
hereunder. Interest will be payable in-kind (“PIK Interest”) on the Accreted Principal Amount of the Term Loan
by the automatic increase of the principal amount of the Term Loan on each Interest Payment Date by the amount of accrued interest
payable at that time. Notwithstanding the foregoing, at the option of Borrower, Borrower may pay interest in cash (“Cash
Interest”) on any one or more Interest Payment Dates in lieu of PIK Interest. Supplemental Interest if due and payable,
shall be due and payable monthly in arrears on each Interest Payment Date commencing on the Supplemental Interest Commencement
Date.

 

4.2           Principal
Payments. If not paid earlier (or converted into Common Stock as contemplated by Section 4.4), Borrower will pay
the entire Accreted Principal Amount of the Term Loan, and any other sums due pursuant to the terms hereof, on the third anniversary
of the date of this Agreement (the “Final Maturity Date”).

 

4.3           Prepayment.
Borrower may prepay all or any part of the amounts due on the Term Loan at any time without any premium or penalty, following
delivery of not less than five (5) Business Days prior written notice to Agent. All prepayments will be applied on a pro rata basis
against the then outstanding balance of the respective Term Loans of the Lenders.

 

4.4           Conversion
by Lenders.

 

(a)          Subject
to Section 4.4(b) below, each of the Lenders may, at any time, convert all but not less than all (unless prior written consent
of Borrower is obtained), of the Accreted Principal Amount of such Lender’s Term Loan plus any accrued and unpaid interest
(but in no event in excess of such Lender’s Commitment Percentage of the NYSE MKT Threshold) into shares of the Company’s
common stock, $0.001 par value per share (the “Common Stock”) at the IL Conversion Price, in the case of conversion
by the Initial Lenders, and at the SL Conversion Price in the case of conversion by any of the Supplemental Lenders, in each case,
subject to adjustment as provided below, by delivering written notice thereof to the Company. Such notice of conversion or any
subsequent notice of conversion (each, a “Notice of Conversion”) shall be irrevocable once given and shall specify
the amount of the applicable Lender’s Term Loan intended to be converted. The Company shall effect such conversion as promptly
as practicable following its receipt of such Notice of Conversion (such date the “Conversion Date”) and interest
on the portion of the Term Loan so converted shall cease to accrue on such Conversion Date.

 

(b)          Notwithstanding
anything herein to the contrary, initially each Lender’s conversion rights under this Section 4.4 shall be limited
to such Lender’s Commitment Percentage of the lesser of (i) such number of shares of Common Stock as equals less than 20%
of all presently outstanding Common Stock, as contemplated by Section 713(a) of the NYSE MKT Rules or (ii) the maximum number of
shares of Common Stock that will not cause the ownership of the Company by any or all Lenders to reach or exceed the “change
in control” threshold amount under Section 713(b) of the NYSE MKT Rules, as amended from time to time, in each case, so long
as such Rules continue to be applicable to the Company (the “NYSE MKT Threshold”). The Company will, at its
sole cost and expense, include within the agenda for its annual meeting of stockholders to be held in 2016, a proposal for stockholder
approval of the transactions contemplated by this Agreement, including the conversion of the entire amount of the Term Loan (including,
without limitation, the portion of the outstanding Term Loan that would cause the ownership of the Company by Lenders to exceed
the NYSE MKT Threshold (the “Contingent Convertible Portion”)) into shares of Common Stock at the IL Conversion
Price and/or the SL Conversion Price, as applicable. If the Company is unable to obtain stockholder approval or otherwise take
alternative steps necessary to permit conversion of a Lender’s Commitment Percentage of the Contingent Convertible Portion
within fifteen (15) Business Days after the later of (i) the date of such annual meeting of stockholders, or (ii) the date on which
such Lender delivers a Notice of Conversion with respect to such Lender’s Commitment Percentage of the Contingent Convertible
Portion of the Term Loan to the Company (the “Supplemental Interest Commencement Date”), then the Company will
be required to pay to such Lender so providing a Notice of Conversion, Supplemental Interest on such Lender’s Commitment
Percentage of the Contingent Convertible Portion of the Term Loan as provided in Section 3.1 above.

 

    	 	- 8 -	 

     

    

 

(c)          The
Company covenants and agrees that the shares of Common Stock that may be issued upon the exercise of any Lender’s conversion
rights hereunder will, upon issuance, be validly issued and outstanding, fully paid and non-assessable, and free from all taxes,
liens and charges with respect to the issuance thereof. The Company further covenants and agrees that the Company will at all times
during the time that principal or interest is owed pursuant to this Agreement, have authorized and reserved, free from preemptive
rights, a sufficient number of shares of its Common Stock to provide for the conversion rights set forth herein. If at any time
while Lenders have conversion rights hereunder, the number of authorized but unissued shares of Common Stock shall not be sufficient
to permit conversion of amounts owed hereunder, the Company will take such corporate action as may, in the opinion of its counsel,
be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for
such purposes.

 

(d)          Upon
a conversion hereunder, the Company shall not be required to issue stock certificates representing fractions of shares of Common
Stock, and in lieu of any fractional shares which would otherwise be issuable, the Company shall issue the next lowest whole number
of shares of Common Stock.

 

(e)          (i)          In
the event of changes in the outstanding Common Stock of the Company by reason of stock dividends, splits, recapitalizations, reclassifications,
combinations or exchanges of shares, separations, reorganizations, liquidations, or the like, the IL Conversion Price and the SL
Conversion Price shall be correspondingly adjusted to give Lenders, on exercise for the same aggregate IL Conversion Price or SL
Conversion Price, as applicable, the total number, class, and kind of shares as Lenders would have owned had the Term Loan been
converted prior to the event and had the Lenders continued to hold such shares until after the event requiring adjustment.

 

(ii)         If
during the time that principal or interest is owed on the Term Loan, the Company issues or sells Additional Shares of Common Stock
(as defined below) other than pursuant to clause (i) above for a price (the “Effective Price”) less than
the then effective IL Conversion Price or SL Conversion Price, as the case may be, then and in each such case, the then-existing
IL Conversion Price or SL Conversion Price, as the case may be, shall be reduced, as of the opening of business on the date of
such issue or sale, to a price equal to the greater of (i) Ten Cents ($0.10) per share or (ii) such Effective Price. “Additional
Shares of Common Stock” shall mean all shares of Common Stock, or options, warrants or other rights to acquire Common
Stock, issued by the Company, other than (A) options, warrants or shares of Common Stock issued to employees, directors and consultants
as a part of an equity incentive plan or agreement approved by the Company’s Board of Directors (including pursuant to any
Director Stock Purchase Plan or Employee Stock Purchase Plan under which compensation payments can be applied to or accepted in
lieu of cash), (B) shares of Common Stock issued as a consideration for a merger, acquisition or other business combination approved
by the Company’s Board of Directors, (C) shares of Common Stock issued or issuable to any Person that may hereafter become
a Lender hereunder, (D) options, warrants or shares issued pursuant to any equipment loan or leasing arrangement, real property
leasing arrangement or debt financing from a bank or similar financial institution approved by the Company’s Board of Directors;
and (E) shares of Common Stock issued upon the exercise of an option, warrant or other right to acquire Common Stock pursuant to
which an adjustment of the IL Conversion Price or the SL Conversion Price, as the case may be, under this Section 4.4(e)
has already been made.

 

4.5           Payments
to Agent. All payments in respect to the Term Loan shall be paid to Agent, for the ratable benefit of the Lenders, to an
account specified by Agent to Borrower from time to time.

 

    	 	- 9 -	 

     

    

 

5.          SECURITY.

 

5.1           Personal
Property. As security for the full and timely payment and performance of all Lender Indebtedness, Borrower hereby grants
to Agent, for itself and the benefit of Lenders, a security interest in all existing and after-acquired property of Borrower of
any nature including, without limitation:

 

(a)          All
present and future accounts, contract rights, chattel paper, instruments and documents and all other rights to the payment of money
whether or not yet earned, for services rendered or goods sold, consigned, leased or furnished by Borrower or otherwise, together
with (i) all goods (including any returned, rejected, repossessed or consigned goods), the sale, consignment, lease or other furnishing
of which shall be given or may give rise to any of the foregoing, (ii) all of Borrower’s rights as a consignor, consignee,
unpaid vendor or other lien or in connection therewith, including stoppage in transit, set-off, detinue, replevin and reclamation,
(iii) all general intangibles related thereto, (iv) all guaranties, mortgages, security interests, assignments, and other encumbrances
on real or personal property, leases and other agreements or property securing or relating to any accounts, (v) choses-in-action,
claims and judgments, and (vi) any returned or unearned premiums, which may be due upon cancellation of any insurance policies.

 

(b)          All
present and future inventory of Borrower (including but not limited to goods held for sale or lease or furnished or to be furnished
under contracts for service, raw materials, work-in-process, finished goods and goods used or consumed in Borrower’s business)
whether owned, consigned or held on consignment, together with all merchandise, component materials, supplies, packing, packaging
and shipping materials, and all returned, rejected or repossessed goods sold, consigned, leased or otherwise furnished by such
Borrower and all embedded software related thereto.

 

(c)          All
present and future general intangibles (including but not limited to payment intangibles, tax refunds and rebates, manufacturing
and processing rights, designs, patents, patent rights and applications therefor, trademarks and registration or applications therefor,
trade names, brand names, logos, inventions, copyrights and all applications and registrations therefor), licenses, permits, approvals,
software and computer programs, license rights, royalties, trade secrets, methods, processes, know-how, formulas, drawings, specifications,
descriptions, label designs, plans, blueprints, patterns and all memoranda, notes and records with respect to any research and
development.

 

(d)          All
present and future machinery, equipment, furniture, fixtures, motor vehicles, tools, dies, jigs, molds and other articles of tangible
personal property of every type together with all parts, substitutions, accretions, accessions, attachments, accessories, additions,
components and replacements thereof, and all manuals of operation, maintenance or repair, and all embedded software related thereto.

 

(e)          All
present and future general ledger sheets, files, books and records, customer lists, books of account, invoices, bills, certificates
or documents of ownership, bills of sale, business papers, correspondence, credit files, tapes, cards, computer runs and all other
data and data storage systems whether in the possession of Borrower or any service bureau.

 

(f)          All
present and future letter of credit rights and supporting obligations, including without limitation, all letters of credit and
letter of credit rights now existing or hereafter issued naming Borrower as a beneficiary or assigned to Borrower, including the
right to receive payment thereunder, and all documents and records associated therewith.

 

(g)          All
present and future financial assets and investment property of Borrower.

 

(h)          All
funds, instruments, documents, policies and evidence and certificates of insurance and rights thereunder, securities, chattel paper
and other assets of Borrower or in which Borrower has an interest and all proceeds thereof, now or at any time hereafter on deposit
with or in the possession or control of Lender Parties or owing by Lender Parties to Borrower or in transit by mail or carrier
to Lender Parties or in the possession of any other Person acting on any Lender Party’s behalf, without regard to whether
any Lender Party received the same in pledge, for safekeeping, as agent for collection or otherwise, or whether any Lender Party
has conditionally released the same, and in all assets of Borrower in which Lender Parties now have or may at any time hereafter
obtain a lien, mortgage, or security interest for any reason.

 

    	 	- 10 -	 

     

    

 

(i)          All
products and proceeds of each of the items described in the foregoing subparagraphs (a)-(i) and all supporting obligations
related thereto.

 

5.2           Real
Property. As further security for the Lender Indebtedness, the Company shall grant to Agent, for the benefit of itself
and the Lenders, a mortgage lien encumbering the Mortgaged Property, subject and junior to any liens thereon granted by the Company
to Santander or any other institutional Lender providing financing or refinancing to the Company secured by the Mortgaged Property.
In the event of any refinancing of the Mortgaged Property, Agent, on behalf of itself and the Lenders, will execute such subordination
of mortgage, as reasonably requested by the new Lender, bearing like tenor to and no less favorable to such new Lender than the
Santander Subordination Agreement.

 

5.3           General.

 

(a)          The
collateral described above in Sections 5.1 and 5.2 is collectively referred to herein as the “Collateral”.
The above-described security interests, assignments and liens shall not be rendered void by the fact that no Lender Indebtedness
exists as of any particular date, but shall continue in full force and effect until the Lender Indebtedness has been repaid or
converted into Common Stock. Lender Parties have no agreement or commitment outstanding pursuant to which Lender Parties may extend
credit to or on behalf of Borrower and Lender Parties have executed termination statements or releases with respect thereto.

 

(b)          Borrower
hereby irrevocably authorizes Agent at any time and from time to time to file UCC financing statements with respect to the Collateral,
naming Borrower as debtor, and agrees to provide Agent promptly with any information requested by Agent in connection with any
such financing statements.

 

(c)          Borrower
shall furnish to Agent from time to time statements and schedules further identifying and describing the Collateral and such other
reports in connection with the Collateral as Agent may reasonably request, all in reasonable detail. Borrower shall promptly execute
and deliver to Agent any instruments and documents, and shall promptly take such further action, as Agent may reasonably request
to obtain the benefit of the security interests granted by this Section 5.

 

6.          REPRESENTATIONS
AND WARRANTIES. Borrower represents and warrants as follows:

 

6.1           Borrower
Representations and Warranties. Borrower represents and warrants as follows:

 

(a)          Valid
Organization, Good Standing and Qualification. Borrower is duly formed, validly existing and in good standing under the
laws of the State of Delaware, and has full power and authority to execute, deliver and comply with the Loan Documents and to carry
on its business as it is now being conducted.

 

(b)          Due
Authorization; No Legal Restrictions. The execution and delivery by Borrower of the Loan Documents, the consummation of
the transactions contemplated by the Loan Documents and the fulfillment and compliance with the respective terms, conditions and
provisions of the Loan Documents: (a) have been duly authorized by all requisite corporate action of Borrower, (b) will not conflict
with or result in a breach of, or constitute a default (or might, upon the passage of time or the giving of notice or both, constitute
a default) under, any of the terms, conditions or provisions of any applicable statute, law, rule, regulation or ordinance, or
Borrower’s organizational documents or any indenture, mortgage, loan, credit agreement or other document or instrument to
which Borrower is a party or by which Borrower may be bound or affected, or any judgment or order of any court or governmental
department, commission, board, bureau, agency or instrumentality, domestic or foreign, and (c) will not result in the creation
or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of Borrower under
the terms or provisions of any such agreement or instrument, except liens in favor of Lender Parties.

 

    	 	- 11 -	 

     

    

 

(c)          Enforceability.
The Loan Documents have been duly executed by Borrower and delivered to Agent and constitute legal, valid and binding obligations
of Borrower, enforceable in accordance with their terms, except as enforceability may be limited by any bankruptcy, insolvency,
reorganization, moratorium or other laws or equitable principles affecting creditors’ rights generally.

 

(d)          Governmental
Consents. No consent, approval or authorization of or designation, declaration or filing with any governmental authority
on the part of Borrower is required in connection with the execution, delivery or performance by Borrower of the Loan Documents
or the consummation of the transactions contemplated thereby.

 

(e)          Title
to Collateral. The Collateral is and will be owned by Borrower free and clear of all liens and other encumbrances of any
kind (including liens or other encumbrances upon properties acquired or to be acquired under conditional sales agreements or other
title retention devices), excepting only liens in favor of Agent and those liens and encumbrances permitted under Section 7.4
below. Borrower will defend the Collateral against any claims of all persons or entities other than Agent or such other permitted
lienholders as are set forth in Section 7.4.

 

6.2           Lender
Parties’ Representations and Warranties. Lender Parties represent and warrant as follows:

 

(a)          Qualification;
No Legal Restrictions. Lender Parties have full power and authority to execute, deliver and comply with the Loan Documents.
The execution and delivery by Lender Parties of the Loan Documents, the consummation of the transactions contemplated by the Loan
Documents and the fulfillment and compliance with the respective terms, conditions and provisions of the Loan Documents will not
conflict with or result in a breach of, or constitute a default (or might, upon the passage of time or the giving of notice or
both, constitute a default) under, any of the terms, conditions or provisions of any applicable statute, law, rule, regulation
or ordinance, or any indenture, mortgage, loan, credit agreement or other document or instrument to which any Lender Party is a
party or by which any Lender Party may be bound or affected, or any judgment or order of any court or governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign.

 

(b)          Enforceability.
The Loan Documents have been duly executed by Lender Parties and delivered to Borrower and constitute legal, valid and binding
obligations of Lender Parties, enforceable in accordance with their terms, except as enforceability may be limited by any bankruptcy,
insolvency, reorganization, moratorium or other laws or equitable principles affecting creditors’ rights generally.

 

(c)          Governmental
Consents. No consent, approval or authorization of or designation, declaration or filing with any governmental authority
on the part of any Lender Party is required in connection with the execution, delivery or performance by Lender Parties of the
Loan Documents or the consummation of the transactions contemplated thereby.

 

7.          GENERAL
COVENANTS. Borrower will comply with the following:

 

7.1           Maintenance
of Borrower’s Existence. Borrower shall keep in full force and effect: (a) its legal existence in good standing under
the law of its jurisdiction of organization and (b) its qualification to do business in each jurisdiction in which such qualification
is required.

 

7.2           Restrictions
on Indebtedness. Borrower shall not, without the prior written consent of Agent, incur any indebtedness for borrowed money
except for (a) Senior Indebtedness and (b) Lender Indebtedness and (c) trade indebtedness incurred in the ordinary course of business.

 

    	 	- 12 -	 

     

    

 

7.3           Defaults.
Borrower shall promptly notify Agent of any event of default under any document related to Senior Indebtedness, or any event or
condition which with the passage of time or the giving of notice would become such an event of default.

 

7.4           Removal
of Collateral. Except with the prior written consent of Agent, Borrower shall not (i) remove any of the Collateral from
the location specified above other than in the ordinary course of business or (ii) change its name or its jurisdiction of incorporation,
relocate its principal place of business or reincorporate or reorganize itself.

 

7.5           Maintenance
of Collateral. Borrower shall keep the Collateral in good order and repair, not waste any Collateral, not use any Collateral
in violation of law or any policy of insurance, comply in all material respects with its obligations with respect to the Collateral,
and make the Collateral available for inspection by Agent (or its Agents, attorneys or accountants) at all reasonable times.

 

8.          CONDITIONS
TO ADVANCES. Advances shall be conditioned upon the following conditions and each request by Borrower for an Advance shall
constitute a representation by Borrower to Lender Parties that each condition has been met or satisfied:

 

8.1           Representations
and Warranties. All representations and warranties of Borrower contained herein or in any other Loan Document shall be
true at and as of the date of such Advance as if made on such date, and each request for an Advance shall constitute reaffirmation
by Borrower that such representations and warranties are then true.

 

8.2           No
Default. No condition or event shall exist or have occurred at or as of the date of such Advance which would constitute
a Default or Event of Default hereunder.

 

8.3           Other
Requirements. Lender Parties shall have received all certificates, authorizations, affidavits, schedules and other documents
which are provided for hereunder or under the Loan Documents, or which Lender Parties may reasonably request.

 

9.          DEFAULT
AND REMEDIES.

 

9.1           Events
of Default. The occurrence of any one or more of the following events shall constitute an Event of Default hereunder:

 

(a)          The
failure of Borrower to pay any amount of principal, interest or any other amount payable hereunder, or any other Lender Indebtedness
on the date on which such payment is due, whether at the stated maturity or due date thereof, or by reason of any requirement for
the prepayment thereof, by acceleration or otherwise, and such failure continues unremedied for a period of ten (10) days after
the date such payment is first due;

 

(b)          The
failure of Borrower to duly perform or observe any obligation, covenant or agreement on its part contained herein or in any other
Loan Document not otherwise specifically constituting an Event of Default under this Section 9.1 and such failure continues
unremedied for a period of thirty (30) days after notice from Agent to Borrower of the existence of such failure;

 

(c)          The
failure of Borrower to pay any Indebtedness for borrowed money due to any third Person or the existence of any other event of default
under any loan, security agreement, mortgage or other agreement pertaining thereto binding Borrower, after the expiration of any
notice and/or grace periods permitted in such documents;

 

(d)          The
adjudication of Borrower as a bankrupt or insolvent, or the entry of an order appointing a receiver or trustee for Borrower or
any of its respective property or approving a petition seeking reorganization or other similar relief under the bankruptcy or other
similar laws of the United States or any state or any other competent jurisdiction;

 

    	 	- 13 -	 

     

    

 

(e)          A
proceeding under any bankruptcy, reorganization, arrangement of debt, insolvency, readjustment of debt or receivership law is filed
by or against (unless dismissed within thirty (30) days and provided that Lender Parties shall have no obligation to make Advances
during such thirty (30) day period Borrower, or Borrower makes an assignment for the benefit of creditors, or Borrower takes any
action to authorize any of the foregoing;

 

(f)          The
suspension of the operation of Borrower’s present business, Borrower becoming unable to meet its debts as they mature or
the admission in writing by Borrower to such effect, or Borrower calling any meeting of all or any material portion of its creditors
for the purpose of debt restructure;

 

(g)          All
or any part of the Collateral or the assets of Borrower are attached, seized, subjected to a writ or distress warrant, or levied
upon, or come within the possession or control of any receiver, trustee, custodian or assignee for the benefit of creditors;

 

(h)          Any
representation or warranty of Borrower in any of the Loan Documents is discovered to be untrue in any material respect or any statement,
certificate or data furnished by Borrower pursuant hereto is discovered to be untrue in any material respect as of the date as
of which the facts therein set forth are stated or certified;

 

(i)          Any
material uninsured damage to, or loss, theft, or destruction of, a material portion of the Collateral occurs;

 

(j)          The
loss, suspension, revocation or failure to renew any license or permit now held or hereafter acquired by Borrower, which loss,
suspension, revocation or failure to renew will have a material adverse effect on the business profits, assets or financial condition
of Borrower;

 

(k)          The
occurrence of an event of default under any of the other Loan Documents; or

 

(l)          The
validity or enforceability of this Agreement, or any of the Loan Documents, is contested by Borrower or any stockholder of Borrower,
or Borrower denies that it has any or any further liability or obligation hereunder or thereunder.

 

9.2           Remedies.
At the option of Agent, or at the request of Required Lenders, upon the occurrence of an Event of Default, or at any time thereafter:

 

(a)          The
entire unpaid principal of the Term Loan, all other Lender Indebtedness, or any part thereof, all interest accrued thereon, all
fees due hereunder and all other obligations of Borrower to Lender Parties hereunder or under any other agreement, note or otherwise
arising will become immediately due and payable without any further demand or notice;

 

(b)          The
Term Loan will immediately terminate and Borrower will receive no further extensions of credit thereunder;

 

(c)          Agent
may enter any premises occupied by Borrower and take possession of the Collateral and any records relating thereto; and/or

 

(d)          Lender
Parties may exercise each and every right and remedy granted to it under the Loan Documents, under the Uniform Commercial Code
and under any other applicable law or at equity.

 

If an Event of Default occurs
under Section 9.1(d) or (e), all Lender Indebtedness shall become immediately due and payable.

 

    	 	- 14 -	 

     

    

 

9.3           Sale
or Other Disposition of Collateral. The sale, lease or other disposition of the Collateral, or any part thereof, by Agent
after an Event of Default may be for cash, credit or any combination thereof, and Agent, for itself and on behalf of the Lenders,
may purchase all or any part of the Collateral at public or, if permitted by law, private sale, and in lieu of actual payment of
such purchase price, may set-off the amount of such purchase price against the Lender Indebtedness then owing. Any sales of the
Collateral may be adjourned from time to time with or without notice. Agent may cause the Collateral to remain on Borrower’s
premises or otherwise or to be removed and stored at premises owned by other persons, at Borrower’s expense, pending sale
or other disposition of the Collateral. Borrower, at Agent’s request, shall assemble the Collateral consisting of inventory
and tangible assets and make such assets available to Agent at a place to be designated by Agent. Agent shall have the right to
conduct such sales on Borrower’s premises, at Borrower’s expense, or elsewhere, on such occasion or occasions as Agent
may see fit. Any notice required to be given by Agent of a sale, lease or other disposition or other intended action by Agent with
respect to any of the Collateral which is deposited in the United States mail, postage prepaid and duly addressed to Borrower at
the address specified in Section 11.1 below, at least ten (10) business days prior to such proposed action, shall constitute
fair and reasonable notice to Borrower of any such action. The net proceeds realized by Agent upon any such sale or other disposition,
after deduction for the expenses of retaking, holding, storing, transporting, preparing for sale, selling or otherwise disposing
of the Collateral incurred by Lender Parties in connection therewith and all other costs and expenses related thereto including
attorney fees, shall be applied in such order as Agent, in its sole discretion, elects, toward satisfaction of the Lender Indebtedness.
Agent shall account to Borrower for any surplus realized upon such sale or other disposition, and Borrower shall remain liable
for any deficiency. The commencement of any action, legal or equitable, or the rendering of any judgment or decree for any deficiency
shall not affect Agent’s security interest in the Collateral. Borrower agrees that Lender Parties have no obligation to preserve
rights to the Collateral against any other parties. Agent is hereby granted a license or other right to use, after an Event of
Default, without charge, Borrower’s labels, general intangibles, intellectual property, equipment, real estate, patents,
copyrights, rights of use of any name, trade secrets, trade names, trademarks, service marks and advertising matter, or any property
of a similar nature, as it pertains to the Collateral, in completing production of, advertising for sale and selling any inventory
or other Collateral and Borrower’s rights under all contracts, licenses, approvals, permits, leases and franchise agreements
shall inure to Lender Parties’ benefit. Lender Parties shall be under no obligation to marshal any assets in favor of Borrower
or any other party or against or in payment of any or all of the Lender Indebtedness.

 

9.4           Set-Off.
Without limiting the rights of Lender Parties under applicable law, Lender Parties have and may exercise a right of set-off, a
lien against and a security interest in all property of Borrower now or at any time in any Lender Party’s possession in any
capacity whatsoever, including but not limited to any balance of any deposit, trust or agency account, or any other Lender Party
account with Agent, as security for all Lender Indebtedness. At any time and from time to time following the occurrence of an Event
of Default, or an event which with the giving of notice or passage of time or both would constitute an Event of Default, Lender
Parties may without notice or demand, set off and apply any and all deposits (general or special, time or demand, provisional or
final) at any time held and other indebtedness at any time owing by any Lender Party to or for the credit of Borrower against any
or all of the Lender Indebtedness and Borrower’s obligations under the Loan Documents.

 

9.5           Delay
or Omission Not Waiver. Neither the failure nor any delay on the part of any Lender Party to exercise any right, remedy,
power or privilege under the Loan Documents upon the occurrence of any Event of Default or otherwise shall operate as a waiver
thereof or impair any such right, remedy, power or privilege. No waiver of any Event of Default shall affect any later Event of
Default or shall impair any rights of any Lender Party. No single, partial or full exercise of any rights, remedies, powers and
privileges by any Lender Party shall preclude further or other exercise thereof. No course of dealing between any Lender Party
and Borrower shall operate as or be deemed to constitute a waiver of any Lender Party’s rights under the Loan Documents or
affect the duties or obligations of Borrower.

 

9.6           Remedies
Cumulative; Consents. The rights, remedies, powers and privileges provided for herein shall not be deemed exclusive, but
shall be cumulative and shall be in addition to all other rights, remedies, powers and privileges in Lender Parties’ favor
at law or in equity. Whenever Agent’s consent or approval is required, such consent or approval shall be at the sole and
absolute discretion of Agent.

 

9.7           Certain
Fees, Costs, Expenses, Expenditures and Indemnification. Borrower agrees to pay on demand all costs and expenses of Lender
Parties, including without limitation:

 

    	 	- 15 -	 

     

    

 

(a)          all
costs and expenses in connection with the preparation, review, negotiation, execution, delivery and administration of the Loan
Documents, and the other documents to be delivered in connection therewith, or any amendments, extensions and increases to any
of the foregoing (including, without limitation, attorney’s fees and expenses); and

 

(b)          all
losses, costs and expenses in connection with the enforcement, protection and preservation of any Lender Party’s rights or
remedies under the Loan Documents, or any other agreement relating to any Lender Indebtedness, or in connection with legal advice
relating to the rights or responsibilities of any Lender Party (including without limitation court costs and attorney’s fees).

 

In the event Borrower shall
fail to pay taxes, insurance, assessments, costs or expenses which it is required to pay hereunder, or fails to keep the Collateral
free from security interests or liens (except as expressly permitted herein), or fails to maintain or repair the Collateral as
required hereby, or otherwise breaches any obligations under the Loan Documents, Agent in its discretion, may make expenditures
for such purposes and the amount so expended (including attorney’s fees and expenses, filing fees and other charges) shall
be payable by Borrower on demand and shall constitute part of the Lender Indebtedness.

 

Borrower’s obligations
under this Section shall survive termination of this Agreement and repayment of the Lender Indebtedness.

 

9.8           Time
is of the Essence. Time is of the essence in Borrower’s performance of its obligations under the Loan Documents.

 

10.         SUBORDINATION.

 

10.1         Subordination.
Notwithstanding anything to the contrary contained in this Agreement:

 

(a)          The
Loan Documents and all of the Lender Indebtedness shall be subordinate to the Senior Indebtedness, as provided in the Subordination
Agreement. Lender Parties agree that upon any replacement, renewal or refinancing of Senior Indebtedness, they will enter into
any new or replacement subordination documentation with respect to Senior Indebtedness as may be reasonably requested by the Company,
so long as such subordination documentation is on terms substantially similar to the Subordination Agreement. Borrower will not
permit the Senior Indebtedness to exceed the Senior Indebtedness Debt Cap, without the prior written consent of Lender.

 

(b)          Lender
Parties may enforce rights granted under this Agreement or any other Loan Document only in a manner not inconsistent with the Subordination
Agreement. Any assignee of Santander, and any commercial Lender providing financing to Borrower or any Affiliate (including financing
undertaken for the purpose of refinancing Senior Indebtedness), shall have the benefit of this Article 10 and of the other
provisions of this Agreement.

 

(c)          Notwithstanding
any provision in this Agreement or the other Loan Documents, each of the Lender Parties irrevocably authorizes and instructs Agent
to enter into the Subordination Agreement .

 

11.         COMMUNICATIONS
AND NOTICES.

 

11.1         Communications
and Notices. All notices, requests and other communications made or given in connection with the Loan Documents shall be
in writing and, unless receipt is stated herein to be required, shall be deemed to have been validly given if delivered personally
to the individual or division or department to whose attention notices to a party are to be addressed, or by private carrier, or
registered or certified mail, return receipt requested, or by telecopy (to the extent a telecopy number is set forth below) with
the original forwarded by first-class mail, in all cases, with charges prepaid, addressed as follows, until some other address
(or individual or division or department for attention) shall have been designated by notice given by one party to the other:

 

    	 	- 16 -	 

     

    

 

To Borrower:

 

Blonder Tongue Laboratories, Inc.

One Jake Brown Road

Old Bridge, New Jersey 08857

Attention: Eric Skolnik, Chief Financial Officer

Telecopy No.: 732 679-3259

 

To Lenders

c/o Agent:

 

Robert J. Pallé

21 Desai Court

Freehold, NJ 07728

 

12.         WAIVERS.

 

12.1         Waivers.
In connection with any proceedings under the Loan Documents, including without limitation any action by Agent in replevin, foreclosure
or other court process or in connection with any other action related to the Loan Documents or the transactions contemplated hereunder,
Borrower waives:

 

(a)          all
errors, defects and imperfections in such proceedings;

 

(b)          all
benefits under any present or future laws exempting any property, real or personal, or any part of any proceeds thereof from attachment,
levy or sale under execution, or providing for any stay of execution to be issued on any judgment recovered under any of the Loan
Documents or in any replevin or foreclosure proceeding, or otherwise providing for any valuation, appraisal or exemption;

 

(c)          presentment
for payment, demand, notice of demand, notice of non-payment, protest and notice of protest of any of the Loan Documents;

 

(d)          any
requirement for bonds, security or sureties required by statute, court rule or otherwise;

 

(e)          any
demand for possession of Collateral prior to commencement of any suit; and

 

12.2         Forbearance.
Agent may release, compromise, forbear with respect to, waive, suspend, extend or renew any of the terms of the Loan Documents,
without notice to Borrower.

 

13.         SUBMISSION
TO JURISDICTION.

 

13.1         Submission
to Jurisdiction. Borrower hereby consents to the exclusive jurisdiction of any state or federal court located within the
State of New Jersey, and irrevocably agrees that, subject to Agent’s election, all actions or proceedings relating to the
Loan Documents or the transactions contemplated hereunder shall be litigated in such courts, and Borrower waives any objection
which it may have based on lack of personal jurisdiction, improper venue or forum non conveniens to the conduct of any proceeding
in any such court and waives personal service of any and all process upon it, and consents that all such service of process be
made by mail or messenger directed to it at the address set forth in Section 11.1. Nothing contained in this Section
13.1 shall affect the right of Agent to serve legal process in any other manner permitted by law or affect the right of any
Lender Party to bring any action or proceeding against Borrower or its property in the courts of any other jurisdiction.

 

14.         MISCELLANEOUS.

 

14.1         Survival.
All covenants, agreements, representations and warranties made by Borrower in the Loan Documents or made by or on its behalf in
connection with the transactions contemplated herein shall be true at all times this Agreement is in effect and shall survive the
execution and delivery of the Loan Documents, any investigation at any time made by any Lender Party or on its behalf and the making
by any Lender Party of the loans or advances to Borrower. All statements contained in any certificate, statement or other document
delivered by or on behalf of Borrower pursuant hereto or in connection with the transactions contemplated hereunder shall be deemed
representations and warranties by Borrower.

 

    	 	- 17 -	 

     

    

 

14.2         No
Assignment. Borrower may not assign any of its rights or obligations hereunder without the prior written consent of Agent,
and any such assignment without consent shall be void and of no force or effect. Any Lender Party may assign its rights and obligations
hereunder in its discretion.

 

14.3         Binding
Effect. This Agreement and all rights and powers granted hereby will bind and inure to the benefit of the parties hereto
and their respective permitted successors and permitted assigns.

 

14.4         Severability.
The provisions of this Agreement and all other Loan Documents are deemed to be severable, and the invalidity or unenforceability
of any provision shall not affect or impair the remaining provisions which shall continue in full force and effect.

 

14.5         No
Third Party Beneficiaries. The rights and benefits of this Agreement and the Loan Documents shall not inure to the benefit
of any third party.

 

14.6         Modifications.
No modification of this Agreement or any of the Loan Documents shall be binding or enforceable unless in writing and signed by
or on behalf of the party against whom enforcement is sought.

 

14.7         Business
Day Convention. If the day provided herein for the payment of any amount or the taking of any action falls on a Saturday,
Sunday or public holiday at the place for payment or action, then the due date for such payment or action will be the next succeeding
Business Day.

 

14.8         Law
Governing. This Agreement shall be construed in accordance with and governed by the laws of the State of Delaware without
regard to conflict of law principles.

 

14.9         Integration.
The Loan Documents shall be construed as integrated and complementary of each other, and as augmenting and not restricting any
Lender Party’s rights, powers, remedies and security. The Loan Documents contain the entire understanding of the parties
thereto with respect to the matters contained therein and supersede all prior agreements and understandings between the parties
with respect to the subject matter thereof and do not require parol or extrinsic evidence in order to reflect the intent of the
parties. In the event of any inconsistency between the terms of this Agreement and the terms of the other Loan Documents, the terms
of this Agreement shall prevail.

 

14.10         Headings.
The headings of the Articles, Sections, paragraphs and clauses of this Agreement are inserted for convenience only and shall not
be deemed to constitute a part of this Agreement.

 

14.11         Counterparts.
This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument,
and any of the parties hereto may execute this Agreement by signing any such counterpart.

 

14.12         Waiver
of Right to Trial by Jury. BORROWER AND LENDER WAIVE ANY RIGHT TO TRIAL BY JURY ON ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION
(a) ARISING UNDER ANY OF THE LOAN DOCUMENTS OR (b) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF BORROWER
OR LENDER WITH RESPECT TO ANY OF THE LOAN DOCUMENTS OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER SOUNDING
IN CONTRACT OR TORT OR OTHERWISE. BORROWER AND LENDER AGREE AND CONSENT THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION
SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY
OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF BORROWER AND LENDER TO THE WAIVER OF THEIR RIGHT TO TRIAL
BY JURY. BORROWER ACKNOWLEDGES THAT IT HAS HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL REGARDING THIS SECTION, THAT IT FULLY UNDERSTANDS
ITS TERMS, CONTENT AND EFFECT, AND THAT IT VOLUNTARILY AND KNOWINGLY AGREES TO THE TERMS OF THIS SECTION.

 

    	 	- 18 -	 

     

    

 

15.         AGREEMENTS
REGARDING PAYMENTS TO LENDERS.

 

15.1         Payments
of Principal, Interest and Fees. After Agent’s receipt of any principal or interest payments under this Agreement,
Agent agrees to remit promptly to the Lenders their respective Percentage Share of such payments.

 

16.         AGENCY.

 

16.1         Appointment
of Agent; Powers. Each Lender hereby irrevocably designates and appoints RJP to act as Agent for such Lender under this
Agreement and the other Loan Documents, and irrevocably authorizes RJP, as Agent for such Lender, to take such action on its behalf
under the provisions of this Agreement and the other Loan Documents, and to exercise such powers and perform such duties as are
expressly delegated to Agent by the terms of this Agreement and the other Loan Documents, together with such other powers as are
reasonably incidental thereto. In performing its functions under this Agreement, RJP is acting solely as an Agent of the Lenders,
and RJP does not assume, and shall not be deemed to have assumed, an agency or other fiduciary relationship with Borrower. Agent
shall not have any (a) duty, responsibility, obligation or liability to any Lender, except for those duties, responsibilities,
obligations and liabilities expressly set forth in this Agreement, or (b) fiduciary relationship with any Lender, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or the other Loan
Documents, or otherwise exist against Agent.

 

16.2         Delegation
of Agent’s Duties. Agent may execute any of its duties under this Agreement and all ancillary documents by or through
agents or attorneys, and shall be entitled to the advice of counsel concerning all matters pertaining to such duties.

 

16.3         Disclaimer
of Agent’s Liabilities. Agent shall not be liable to any Lender for any action lawfully taken or not taken by Agent
under or in connection with the Agreement and the other Loan Documents (except for Agent’s or such person’s gross negligence
or willful misconduct). Without limiting the generality of the foregoing, Agent shall not be liable to the Lenders for (a) any
recital, statement, representation or warranty made by Borrower or any officer thereof contained in (i) this Agreement, (ii) any
other Loan Document or (iii) any certificate, report, audit, statement or other document referred to or provided for in this Agreement
or received by Agent under or in connection with this Agreement, (b) the value, validity, effectiveness, enforceability or sufficiency
of this Agreement, the other Loan Documents or Agent’s security interests in the Collateral, (c) any failure of Borrower
to perform their respective obligations under this Agreement and the other Loan Documents, (d) any loss or depreciation in the
value of, delay in collecting the proceeds of, or failure to realize on, any Collateral, (e) Agent’s delay in the collection
of the Obligations or enforcing Agent’s rights against Borrower, or the granting of indulgences or extensions to Borrower
or any account debtor of Borrower, or (f) for any mistake, omission or error in judgment in passing upon or accepting any Collateral.
In addition, Agent shall have no duty or responsibility to ascertain or to inquire as to the observance or performance of any of
the terms, conditions, covenants or other agreements of Borrower contained in this Agreement or the other Loan Documents, or to
inspect, verify, examine or audit the assets, books or records of Borrower at any time.

 

16.4         Reliance
and Action by Agent. Agent shall be entitled to rely, and shall be fully protected in relying, upon legal counsel, independent
public accountants and experts selected by Agent, and shall not be liable to the Lenders for any action taken or not taken in good
faith based upon the advice of such counsel, accountants or experts. In addition, Agent shall be entitled to rely, and shall be
fully protected in relying, upon any note, writing, resolution, notice, consent, certificate, affidavit, letter, telecopy, telex
or teletype message, statement, order or other document believed by Agent in good faith to be genuine and correct, and to have
been signed, sent or made by the proper person or persons. Agent shall be fully justified in taking or refusing to take any action
under this Agreement and the other Loan Documents unless Agent (a) receives the advice or consent of the Lenders or the Required
Lenders, as the case may be, in a manner that Agent deems appropriate, or (b) is indemnified by the Lenders to Agent’s satisfaction
against any and all liability, cost and expense which may be incurred by Agent by reason of taking or refusing to take any such
action. Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement and the other
Loan Documents in accordance with a request of all Lenders or the Required Lenders, as the case may be, and such request and any
action taken or failure to act pursuant thereto shall be binding upon all Lenders.

 

    	 	- 19 -	 

     

    

 

16.5         Events
of Default. Agent shall not be deemed to have knowledge or notice of the occurrence of any Event of Default hereunder unless
Agent has received notice from Borrower or a Lender describing such Event of Default with specificity. In the event that Agent
receives such a notice, Agent shall promptly give notice thereof to all Lenders. Agent shall take such action with respect to such
Event of Default as shall be reasonably directed by the Lenders or Required Lenders, as the case may be, provided that (a) if appropriate,
Agent may require indemnification from the Lenders under Section 16.4 prior to taking such action, (b) under no circumstances
shall Agent have an obligation to take any action that Agent believes in good faith would violate any law or any provision of this
Agreement or the other Loan Documents, and (c) unless and until Agent shall have received direction from the Lenders or Required
Lenders, as the case may be, Agent may (but shall not be obligated to) take such action or refrain from taking action with respect
to such Event of Default as Agent shall deem advisable and in the best interests of the Lenders.

 

16.6         Lenders’
Due Diligence. Each Lender expressly acknowledges that Agent has not made any representation or warranty to such Lender
regarding the transactions contemplated by this Agreement or the financial condition of Borrower, and such Lender agrees that no
action taken by Agent hereafter, including any review of the business or financial affairs of Borrower, shall be deemed to constitute
a representation or warranty by Agent to any Lender. Each Lender also acknowledges that such Lender has, independently and without
reliance upon Agent or any other Lender and based solely on such documents and information as such Lender has deemed appropriate
(and with the advice and assistance of such legal counsel as such Lender has deemed appropriate), made its own independent (a)
determination of the adequacy, efficacy, sufficiency, validity and enforceability of the Agreement and the other Loan Documents,
(b) credit analysis, appraisal of and investigation into the business, operations, property, financial condition, Collateral and
creditworthiness of Borrower, and (c) decision to enter into this Agreement. Each Lender agrees, independently and without reliance
upon Agent or any other Lender and based on such documents and information as such Lender shall deem appropriate at the time, (i)
to continue to make its own credit analyses and appraisals in deciding whether to take or not take action under this Agreement
and (ii) to make such investigations as such Lender deems necessary to inform itself as to the business, operations, property,
financial condition and creditworthiness of Borrower.

 

16.7         Right
to Indemnification. The Lenders, jointly and severally, shall defend, indemnify and hold harmless Agent (and Agent’s
heirs, successors and assigns) (to the extent not reimbursed by Borrower and without limiting the obligation of Borrower to do
so), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses
or disbursements of any kind whatsoever which may at any time be imposed on, incurred by or asserted against Agent in any way relating
to or arising out of (a) this Agreement or any other Loan Document, (b) the transactions contemplated hereby or (c) any action
taken or not taken by Agent under or in connection with any of the foregoing, provided that no Lender shall be liable for the payment
of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting solely from Agent’s gross negligence or willful misconduct.

 

16.8         Other
Transactions. Agent and any Lender may make loans to and generally engage in any kind of business with Borrower, as though
Agent or such Lender were not Agent or a Lender hereunder. With respect to loans made by Agent under this Agreement as a Lender,
Agent shall have the same rights and powers, duties and liabilities under this Agreement and the other Loan Documents as any other
Lender, and may exercise the same as though it was not Agent, and the term “Lender” and “Lenders” shall
include Agent in its individual capacity as such.

 

16.9         Resignation
of Agent; Removal of Agent. 

 

(a)          Agent
may resign as Agent upon thirty (30) days’ notice to the Lenders, and such resignation shall be effective on the earlier
of (a) the appointment of a successor Agent by the Lenders or (b) the date on which such 30-day period expires. If Agent provides
the Lenders with notice of its intention to resign as Agent, the Lenders agree to appoint a successor to Agent as promptly as possible
thereafter, whereupon such successor shall succeed to the rights, powers and duties of Agent, and the term “Agent”
shall mean such successor effective upon its appointment. Upon the effective date of Agent’s resignation, such Agent’s
rights, powers and duties as Agent hereunder immediately shall terminate, without any other or further act or deed on the part
of such former Agent or any of the parties to this Agreement. After an Agent’s resignation hereunder, the provisions of this
Section 16 shall continue to inure to such Agent’s benefit as to any actions taken or not taken by such Agent while
acting as Agent.

 

    	 	- 20 -	 

     

    

 

(b)          If
RJP resigns as an officer of the Company or is removed as an officer of the Company by the Company’s Board of Directors for
cause (the date of resignation or removal for cause being referred to as the “RJP Termination Date”), RJP’s
rights, powers and duties as Agent hereunder shall terminate on the RJP Termination Date, without any other or further act or deed
on the part of RJP or any of the parties to this Agreement, and the Supplemental Lenders shall promptly appoint a successor Agent
hereunder.

 

16.10         Voting
Rights; Agent’s Discretionary Rights.

 

(a)          Notwithstanding
anything contained in this Agreement to the contrary, without the prior written consent of all Lenders, Agent will not agree to:

 

(i)          amend
or waive Borrower’s compliance with any term or provision of this Agreement; or

 

(ii)         except
as otherwise expressly permitted or required hereunder, release any Collateral.

 

(b)          
In all other respects Agent is authorized to take or to refrain from taking any action which Agent, in the exercise of its reasonable
business judgment, deems to be advisable and in the best interest of the Lenders, unless this Agreement specifically requires Borrower
or Agent to obtain the consent of, or act at the direction of, the Required Lenders.

 

16.11         Deemed
Consent. If a Lender’s consent to a waiver amendment or other course of action is required under the terms of this
Agreement and such Lender does not respond to any request by Agent for such consent within five (5) Business Days after the date
of such request, such failure to respond shall be deemed a consent to the requested course of action.

 

16.12         Survival
of Agreements of the Lenders. The obligations of the Lenders set forth in Section 16.7 hereof shall survive the
termination of this Agreement.

 

17.         Amendment
and Restatement. This Agreement is an amendment and restatement of, and replaces and supersedes, the Existing Agreement
among Borrower and Initial Lenders, and it is not intended to be, nor shall it be construed as, a novation of Borrower’s
responsibilities and obligations to Initial Lenders pursuant to the Existing Agreement or any other related documents previously
executed in favor of Initial Lenders. It is specifically acknowledged and agreed that the security interests and rights granted
to Initial Lenders pursuant to the Existing Agreement and related existing documents, including the Loan Documents, are to continue
in full force and effect for the benefit of and shall in all respects be enforceable by Agent and the other Lenders (except to
the extent, if any, modified herein), and the priority and perfection of all security interests in the Collateral shall continue
to date from the dates originally established in connection with the Existing Agreement and related existing documents. The terms,
conditions, agreements, covenants, representations and warranties set forth in the Existing Agreement are simultaneously amended
and restated in their entirety, and as so amended and restated, replaced and superseded by the terms, conditions agreements, covenants,
representations and warranties set forth in this Agreement and the other Loan Documents executed and/or delivered on or after the
date hereof, and as of the Effective Date neither Borrower nor Agent and Lenders shall be subject to or bound by any of the terms
of the Existing Agreement and shall only be subject to or bound by the terms and provisions of this Agreement, except that nothing
herein or in the other Loan Documents shall, in any manner, be construed to constitute payment of, or impair, limit, cancel or
extinguish, or constitute a novation in respect of any of the Existing Obligations or any other obligations, liabilities and indebtedness
of Borrower evidenced by or arising under the Existing Agreement or impair or adversely affect the continuation of the Liens and
other interests in the Collateral heretofore granted, pledged and/or assigned by Borrower to Agent. All Existing Obligations and
all other loans, advances and other financial accommodations under the Existing Agreement of Borrower to Agent and Lenders that
are outstanding and unpaid as of the date hereof pursuant to the Existing Agreement or otherwise shall be deemed Obligations of
Borrower pursuant to the terms hereof, and shall constitute and be deemed Loans hereunder.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

    	 	- 21 -	 

     

    

 

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

 

	 	BLONDER TONGUE LABORATORIES, INC.
	 	 
	 	By:	 /s/ Eric Skolnik
	 	Name: Eric Skolnik
	 	Title: Sr. VP
	 	 
	 	R.L. DRAKE HOLDINGS, LLC
	 	 
	 	By:	 /s/ Eric Skolnik
	 	Name: Eric Skolnik
	 	Title: VP
	 	 
	 	/s/ Robert J. Pallé
	 	ROBERT J. PALLÉ, as Agent
	 	 
	 	/s/ Robert J. Pallé
	 	ROBERT J. PALLÉ, as a Lender
	 	 
	 	/s/ Carol M. Pallé
	 	CAROL M. PALLÉ, as a Lender
	 	 
	 	/s/ Steven L. Shea
	 	STEVEN L. SHEA, as a Lender
	 	 
	 	/s/ James H. Williams
	 	JAMES H. WILLIAMS, as a Lender

 

    	 	- 22 -	 

     

    

 

Schedule 1.1

 

LENDERS; COMMITMENTS; PERCENTAGE SHARES

 

THE AGGREGATE COMMITMENTS
TOTAL: SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($750,000). ON AND AS OF THE EFFECTIVE DATE, THE COMMITMENTS OF LENDERS ARE AS FOLLOWS:

 

	Lenders	 	Commitment	 	 	Percentage Share	 
	 	 	 	 	 	 	 
	Tranche A
	Robert J. Pallé and Carol M. Pallé	 	$	300,000	 	 	 	100	%
	TOTAL TRANCHE A	 	$	300,000	 	 	 	100	%
	Tranche B
	Steven L. Shea	 	$	100,000	 	 	 	50	%
	Robert J. Pallé and Carol M. Pallé	 	$	50,000	 	 	 	25	%
	James H. Williams	 	$	50,000	 	 	 	25	%
	TOTAL TRANCHE B	 	$	200,000	 	 	 	100	%
	Tranche C
	Robert J. Pallé and Carol M. Pallé	 	$	250,000	 	 	 	100	%
	TOTAL TRANCHE C	 	$	250,000	 	 	 	100	%

 

    	 	- 23 -Exhibit 10.38

 

Execution Copy

 

amended
and restated MORTGAGE AND SECURITY AGREEMENT

 

THIS AMENDED AND RESTATED
MORTGAGE AND SECURITY AGREEMENT is dated as of this 28th day of March, 2016 (the “Mortgage”) by and
between BLONDER TONGUE LABORATORIES, INC., a Delaware corporation (“Mortgagor”), with its place of business
at One Jake Brown Road, Old Bridge, New Jersey and ROBERT J. PALLÉ, in his capacity as agent (in such capacity, the “Mortgagee”)
for the Lenders (as defined in the Loan Agreement referred to below).

 

WITNESSETH:

 

WHEREAS, Mortgagor, certain
persons as lenders (the “Lenders”) and Mortgagee have entered into a certain Amended and Restated Senior Subordinated
Convertible Loan and Security Agreement dated on or about the date hereof (the “Loan Agreement”; and together
with this Mortgage and all other documents given as security for or in connection with the Loan Agreement, as the same may be amended,
modified, or supplemented from time to time, are sometimes collectively referred to below as the “Loan Documents”),
wherein Mortgagor promises to pay to the Lenders the principal sum of up to seven hundred fifty thousand and 00/100 Dollars ($750,000.00),
lawful money of the United States of America, with interest thereon at rates and times, in the manner and according to the terms
and conditions specified in the Loan Agreement, all of which are incorporated herein by reference;

 

WHEREAS, the maximum
principal amount of indebtedness intended to be secured hereby is seven hundred fifty thousand and 00/100 Dollars ($750,000.00);

 

WHEREAS, Mortgagor has
previously entered into (a) a certain Senior Subordinated Convertible Loan and Security Agreement dated as of February 11, 2016
(as in effect on the date hereof, the “Existing Loan Agreement”), by and among Mortgagor, as borrower, and Robert
J. Pallé and Carol M. Pallé, as lenders (collectively, “Initial Lenders”); and (b) a certain Mortgage
and Security Agreement dated as of February 11, 2016 (as in effect on the date hereof, the “Existing Mortgage”)
in favor of the Initial Lenders; and

 

WHEREAS, in connection
with the amendment and restatement of the Existing Loan Agreement and the agreements of the Mortgagee and the Lenders contained
therein, Mortgagor is required to amend and restate the Existing Mortgage, all as more particularly set forth herein.

 

NOW, THEREFORE, in order
to secure the obligations of the Mortgagor as set forth in the Loan Agreement and the full and prompt payment of all the obligations
due or to become due under the Loan Documents, or otherwise due or to become due under this Mortgage, or any extensions or modifications
thereof or hereof, including all future advances, as well as to secure the performance of all of Mortgagor’s covenants and
agreements contained in this Mortgage and the Loan Documents, or any amendments thereof, including without limitation, any advances
made, with respect to the Mortgaged Property described below, for the payment of taxes, assessments, maintenance charges, insurance
premiums or costs incurred for the protection of the Mortgaged Property or the lien of this Mortgage, expenses incurred by Mortgagee
by reason of the default of the Mortgagor, or payment of all other sums advanced in accordance with this Mortgage to protect Mortgagee’s
security, with interest on those sums, and all other obligations, liabilities and indebtedness of every kind, nature or description
owing by Mortgagor to Mortgagee, each Lender and/or its affiliates, including principal, interest, charges, fees and expenses,
however evidenced, whether as principal, surety, endorser, guarantor or otherwise, whether arising under the Loan Documents, or
otherwise, whether now existing or hereafter arising, whether arising before, during or after the initial or any renewal term of
the Loan Documents or after the commencement of any case with respect to Mortgagor under the United States Bankruptcy Code or any
similar statute, whether direct or indirect, absolute or contingent, joint or several, due or not due, primary or secondary, liquidated
or unliquidated, secured or unsecured, original, renewed or extended, and whether arising directly or howsoever acquired by Mortgagee
and the other Lenders, including from any other entity outright, conditionally or as collateral security, by assignment, merger
with any other entity, participations or interests of Mortgagee and the other Lenders in the obligations of Mortgagor to others,
assumption, operation of law, subrogation or otherwise (all of the foregoing are hereinafter collectively referred to as the “Obligations”),
plus interest thereon from the date of demand for payment hereunder plus any and all costs of collection hereunder (including without
limitation reasonable attorney’s fees and other expenses) and in consideration of the premises and the further sum of Ten
Dollars ($10.00) paid to the Mortgagor by Mortgagee and the other Lenders at or before the ensealing and delivery hereof, the receipt
whereof is hereby acknowledged, the Mortgagor has granted, bargained and sold, aliened, enfeoffed, released, remised, conveyed,
confirmed and mortgaged, and by these presents does grant, bargain and sell, alien, enfeoff, release, remise, convey, confirm,
and mortgage unto the Mortgagee (for itself and on behalf of the Lenders) and its successors and assigns, that certain tract or
parcel of land known as One Jake Brown Road, Old Bridge, New Jersey, and the improvements thereon, as the same is more particularly
described in Exhibit “A” attached hereto and made a part hereof (collectively, the “Real Estate”);

 

     

     

    

 

TOGETHER with the appurtenances
and all the estates and rights of mortgagor in and to the Real Estate, including without limitation the rents, fixtures, equipment,
reversions, remainders, easements, issues and profits arising or issuing from the Real Estate and the improvements thereon including,
but not limited to the rents, issues and profits arising or issuing from the Real Estate and the improvements thereon, including
but not limited to the rents, fixtures, equipment, issues and profits arising or issuing from all insurance policies, sale agreements,
licenses, options, leases and subleases now or hereafter entered into covering any part of said Real Estate or the buildings, structures
and improvements thereon, all of which insurance policies, sale agreements, licenses, options, leases, subleases, rents, issues
and profits are hereby assigned and shall be caused to be assigned to Mortgagee (for itself and on behalf of the other Lenders)
by Mortgagor. Mortgagor will execute and deliver to Mortgagee (for itself and on behalf of the other Lenders) on demand such assignments
as Mortgagee (for itself and on behalf of the other Lenders) may require to implement this assignment;

 

TOGETHER with all the
right, title and interest of Mortgagor in and to all streets, roads and public places, opened or proposed, adjoining the Real Estate,
and all easements and rights of way, public or private, now or hereafter created or used in connection therewith;

 

TOGETHER with all the
right, title and interest of Mortgagor, now owned or hereafter acquired, in and to any and all sidewalks and alleys adjacent to
the Real Estate;

 

TOGETHER with all buildings
and improvements of every kind and description now or hereafter erected or placed on the Real Estate;

 

TOGETHER with all of
Mortgagor’s right, title and interest now owned or hereafter acquired in and to all heating, plumbing, sprinkler, water,
gas, electric power, lighting and air conditioning equipment, elevators, machinery, fixtures, equipment, furniture, building materials
of any kind or nature, together with all replacements thereof and additions thereto, now, or at any time hereafter, affixed or
attached to said Real Estate, buildings, structures and improvements (collectively the “Personal Property”),
all of which Mortgagor represents and warrants are and will be owned by Mortgagor free from any prior conditional sales, chattel
mortgages, security interests, liens, pledges, hypothecations, charges or encumbrances and is intended to be subject to the lien
of this Mortgage as if part of the realty. This provision shall be self-operative and this Mortgage, to the extent that any such
Personal Property or other property subject to this Mortgage shall not be deemed to be part of the realty, shall constitute a security
agreement under the New Jersey Uniform Commercial Code (“UCC”), and Mortgagor shall execute and deliver to Mortgagee
(for itself and on behalf of the other Lenders) on demand, and hereby irrevocably appoints Mortgagee (for itself and on behalf
of the other Lenders), or any person designated by Mortgagee (for itself and on behalf of the other Lenders), the attorney-in-fact
of Mortgagor to execute, deliver and file such financing statements and other instruments as Mortgagee (for itself and on behalf
of the other Lenders) may reasonably require in order to perfect and maintain such security interest under the UCC;

 

TOGETHER with all accounts,
contract rights (including, but not limited to, architectural contracts, construction contracts, and management contracts), accounts
receivable, agreements of sale, and claims of any sort relating to or arising out of the Real Estate whether now owned or hereafter
acquired;

 

TOGETHER with all awards,
damages, payments and other compensation, and claims therefor and rights thereto, which may result from a taking or injury by virtue
of the exercise of the power of eminent domain of or to, or from any damage, injury or destruction by casualty or otherwise caused
to, the Real Estate and said improvements and personalty, or any part thereof, including insurance proceeds, or from any change
of grade or vacation of any street abutting thereon, all of which are hereby assigned to Mortgagee (for itself and on behalf of
the other Lenders) to the fullest extent permitted by law, Mortgagee (for itself and on behalf of the other Lenders) being hereby
irrevocably appointed attorney-in-fact for Mortgagor to collect and receive any such awards, damages, payments and compensation
from the authorities or insurers making the same, and to give receipts and acquittances therefor, and to institute, appear in and
prosecute any proceeding therefor, it being agreed that all sums collected by or paid to Mortgagee (for itself and on behalf of
the other Lenders) pursuant to this assignment, net of any cost incurred by Mortgagee (for itself and on behalf of the other Lenders)
in collecting the same (including attorneys’ fees), shall be applied to the payment of the Obligations whether or not then
due and payable, or to the restoration of the Mortgaged Property (hereafter defined) as Mortgagee shall elect, unless otherwise
set forth herein; and

 

    	 	2	 

     

    

 

TOGETHER with any and
all proceeds (including insurance and condemnation proceeds and proceeds of other proceeds) of any of the foregoing.

 

All of the property and
rights hereinabove described or mentioned being hereinafter collectively called the “Mortgaged Property”.

 

TO HAVE AND TO HOLD the
Mortgaged Property unto Mortgagee (for itself and on behalf of the other Lenders), its successors and assigns, forever;

 

AND, at all times until
the Obligations are paid in full with interest and faithfully and strictly performed, Mortgagor does hereby covenant, promise and
agree with Mortgagee (for itself and on behalf of the other Lenders) as follows:

 

ARTICLE
I

 

Covenants As To Taxes and Assessments

 

1.1.          Mortgagor
will pay and discharge (i) all the taxes, general and special, levies and assessments heretofore or hereafter charged, assessed
or levied against the Mortgaged Property or any part thereof by any lawful authority, or which otherwise may become a lien thereon
(all of which are herein collectively the “Taxes”); and (ii) all water and sewer rents which may be assessed
or become liens on the Mortgaged Property, not less than ten days before the date on which any interest or penalties shall commence
to accrue thereon, and produce to Mortgagee evidence of such payment not less than ten days thereafter. In default of any of the
above-described payments, Mortgagee may, but shall not be obligated to, pay the same, and such payment by Mortgagee shall be repaid
by Mortgagor to Mortgagee on demand, shall be secured hereby, and shall bear interest at the rate set forth in the Loan Agreement
from the date Mortgagee makes such payment until such sums are repaid in full. Mortgagor shall promptly cause to be paid and discharged,
any lien or charge whatsoever which by any present or future law may be or become superior, either in lien or in right of distribution
out of the proceeds of any judicial sale of the Mortgaged Property, to the liens created hereby. Mortgagor will cause to be paid,
when due, all charges for utilities whether public or private.

 

1.2.          At
such time or times when Mortgagee is the holder of the senior mortgage against the Mortgaged Property, upon the request of Mortgagee,
Mortgagor will pay to Mortgagee, contemporaneously with each monthly payment of interest, principal or principal and interest,
a sum equal to one-twelfth (1/12) of the real estate taxes, water rents, sewer rents, payments in lieu thereof, special assessments
and any other tax, assessment, lien, claim or encumbrance which may at any time be or become a lien on the Mortgaged Property prior
to, or on a parity with, the lien of this Mortgage so as to enable Mortgagee to pay the same at least thirty (30) days before they
become due. If special assessments against the Mortgaged Property may be paid in installments and Mortgagor elects to do so, the
monthly payments to Mortgagee for such special assessments shall be one-twelfth (1/12) of the then current annual installment.

 

Any such amounts so paid
shall be deemed to be trust funds and may not be co-mingled with general funds of Mortgagee, but rather shall be deposited into
a separate escrow account for the benefit of Mortgagor, provided, however, no interest shall be payable thereon. If, pursuant to
any provision of this Mortgage, the whole amount of said principal debt remaining or any installment of interest, principal or
principal and interest becomes due and payable, Mortgagee shall have the right, at its election, to apply any amounts so held against
all or any of the Obligations, any interest thereon or in payment of the premiums or payments for which the amounts were deposited.
Mortgagor will furnish to Mortgagee tax bills in sufficient time to enable Mortgagee to pay such taxes, assessments, levies, charges
and fees, before interest and penalties accrue thereon.

 

    	 	3	 

     

    

 

1.3.          Mortgagor
covenants and agrees to pay to Mortgagee the principal and interest hereby secured without deduction or credit for any amount for
Taxes assessed or to be assessed against the Mortgaged Property.

 

ARTICLE
II

 

General Representations and Covenants of Mortgagor

 

2.1.          Mortgagor
will observe and perform all of the terms, covenants and conditions on the part of Mortgagor to be observed and performed under
this Mortgage and shall pay and faithfully and strictly perform all of the Obligations.

 

2.2.          Mortgagor
warrants and covenants that it has good and marketable fee simple title to the Mortgaged Property, subject to no liens, claims,
security interests, pledges, hypothecations or other encumbrances or charges. Mortgagor warrants that it has full power and lawful
authority to execute and deliver this Mortgage and to mortgage to Mortgagee all of the property and rights purported to be mortgaged
by it hereunder. Mortgagor will forever warrant and defend the title to the Mortgaged Property unto Mortgagee against the claims
and demands of all persons whomsoever.

 

2.3.          Mortgagor
will not, without the prior written consent of Mortgagee, cause or permit any building or improvement comprising part of the Mortgaged
Property to be removed, demolished or structurally altered, in whole or in part, or any material fixture therein to be removed
or destroyed. Mortgagor will not abandon the Mortgaged Property or cause or permit any waste thereto and will at all times maintain
the Mortgaged Property in substantially its current condition, normal wear and tear excepted.

 

2.4.          Throughout
the term of this Mortgage, Mortgagor, at its sole cost and expense, will take good care of the Mortgaged Property and will keep
the same in good order and condition.

 

2.5.          Mortgagor
will permit Mortgagee and Mortgagee’s representatives to enter the Mortgaged Property at reasonable times and during regular
business hours to inspect the same. In case of any Event of Default, as defined hereinafter, Mortgagee may, at its option, enter
the Mortgaged Property to protect, restore or repair any part thereof, but Mortgagee shall be under no obligation to do so. Mortgagor
will repay to Mortgagee on demand any sums paid by Mortgagee to protect, restore or repair any part of the Mortgaged Property,
with interest thereon at the rate set forth in the Loan Agreement, and, until so paid, the same shall be secured by this Mortgage.

 

2.6.          Throughout
the term of this Mortgage, Mortgagor, at its sole cost and expense, shall promptly comply with all present and future laws, ordinances,
orders, rules, regulations and requirements of all federal, state and municipal governments, courts, departments, commissions,
boards and officers, any national or local Board of Fire Underwriters, or any other body exercising functions similar to those
of any of the foregoing, which may be applicable to the Mortgaged Property, the maintenance and use thereof and the sidewalks and
curbs adjoining the Mortgaged Property whether or not such law, ordinance, order, rule, regulation or requirement shall necessitate
structural changes or improvements, or the removal of any encroachments or projections, ornamental, structural or otherwise, onto
or over property contiguous or adjacent thereto, any such structural changes or improvements or removal of encroachments to be
performed with the consent of Mortgagee, which consent will not be unreasonably withheld. Mortgagor will comply with all orders
and notices of violation thereof issued by any governmental authority. Mortgagor will pay all license fees and similar municipal
charges for the use of the Mortgaged Property and the other areas now or hereafter comprising part thereof or used in connection
therewith and will not, unless so required by any governmental agency having jurisdiction, discontinue use of the Mortgaged Property
without prior written consent of Mortgagee. If Mortgagor shall fail to perform any covenant herein, Mortgagee may (but shall be
under no obligation to) perform such covenant for the account of Mortgagor and any sums paid by Mortgagee in such event shall be
repaid by Mortgagor to Mortgagee with interest thereon at the rate set forth in the Loan Agreement and, until so paid, the same
shall be secured by this Mortgage.

 

    	 	4	 

     

    

 

2.7.          Mortgagor
shall not, without the prior written consent of Mortgagee, by deed, mortgage, pledge, lease, easement or other instrument grant,
mortgage, pledge, convey, assign, devise or otherwise transfer all or any part of the Mortgaged Property or any interest therein,
directly or indirectly, nor shall Mortgagor suffer or permit such conveyance, assignment or transfer by execution sale or operation
of law or otherwise.

 

2.8.          Mortgagor
shall promptly pay upon demand, and presentation of invoices or bills, with interest thereon at the rates set forth in the Loan
Agreement, all expenses and costs incurred by Mortgagee, including reasonable attorney’s fees in connection with any action,
proceeding, litigation or claim instituted or asserted by or against Mortgagee or in which Mortgagee becomes engaged, wherein it
becomes necessary in the reasonable opinion of Mortgagee to defend or uphold the lien of this Mortgage, or the validity or effectiveness
of any assignment of any claim, award, payment, property damage, insurance policy or any other right or property conveyed, encumbered
or assigned by Mortgagor to Mortgagee hereunder, or the priority of any of the same, and all such expenses and costs, and interest
thereon, may be added to and become part of the principal indebtedness of Mortgagor hereunder, bear interest at the rate set forth
in the Loan Agreement and be secured by this Mortgage.

 

2.9.          To
further secure payment of the Obligations, Mortgagor hereby pledges, assigns and grants to Mortgagee a continuing security interest
in and lien on all of Mortgagor’s Personal Property, accounts, contract rights, accounts receivable now owned or existing
or hereafter acquired and all proceeds therefor, whether now owned or hereafter acquired and all proceeds of all of the foregoing.
The parties hereto agree that the security interest created hereunder is valid under the UCC and is a presently existing security
interest and attaches to Mortgagor’s above-mentioned Personal Property as of the date hereof.

 

2.10.         Mortgagor
will not, without the prior written consent of Mortgagee, create or suffer to be created any security interest under the UCC, or
other encumbrance in favor of any party other than Mortgagee, or create or suffer any reservation of title by any such other party,
with respect to any Personal Property nor shall any such Personal Property be the subject matter of any lease or other transaction
whereby the ownership or any beneficial interest in any of such Personal Property is held by any person or entity other than Mortgagor
(or Mortgagee as provided herein). All such Personal Property shall be purchased for cash or in such manner that no lien shall
be created thereon except the lien of this Mortgage, unless Mortgagee shall agree in writing to the contrary before a contract
to purchase any such Personal Property is executed. Mortgagor will deliver to Mortgagee on demand, any contracts, bills of sale,
statements, receipted vouchers or agreements, under which Mortgagor claims title to any Personal Property incorporated in the improvements
or subject to the lien of this Mortgage.

 

2.11.         Mortgagor
shall at its expense, promptly upon request of Mortgagee (i) do all acts and things, including but not limited to the execution
of any further assurances, deemed necessary by Mortgagee, to establish, confirm, maintain and continue the lien created and intended
to be created hereby, all assignments made or intended to be made pursuant hereto, and all other rights and benefits conferred
or intended to be conferred on Mortgagee hereby, and Mortgagor shall pay all costs incurred by Mortgagee in connection therewith,
including all filing and recording costs, cost of searches, and reasonable counsel fees incurred by Mortgagee; and (ii) furnish
Mortgagee with a written certification signed by Mortgagor, or an officer of Mortgagor on Mortgagor’s behalf, as to all then
existing leases for space covering any part of the Mortgaged Property, the names of the tenants, the rents payable thereunder and
the dates to which such rents are paid, together with executed copies of all such leases.

 

2.12.         Mortgagor
will promptly perform and observe, or cause to be performed or observed, all of the terms, covenants and conditions of all instruments
of record affecting the Mortgaged Property, noncompliance with which may affect the security of this Mortgage or which may impose
any duty or obligation upon Mortgagor or any lessee or other occupant of the Mortgaged Property or any part thereof, noncompliance
with which may affect the security of this Mortgage, and Mortgagor shall do or cause to be done all things necessary to preserve
intact and unimpaired any and all easements, appurtenances and other interests and rights in favor of or constituting any portion
of the Mortgaged Property.

 

2.13.         To
further secure payment of the Obligations, Mortgagor hereby assigns and sets over unto Mortgagee the interest of such Mortgagor
as lessor in and to all leases, written or oral, of the Mortgaged Property or any part thereof now or hereafter made, executed
or delivered. Mortgagor hereby authorizes and empowers Mortgagee to collect the rents under the aforesaid leases as they become
due, and hereby directs each and all of the tenants of the Mortgaged Property, upon demand made by Mortgagee, to pay such rents
as they become due to Mortgagee; provided, however, no such demand shall be made unless and until there has occurred an Event of
Default under the terms of this Mortgage, and until such demand is made, Mortgagor is authorized to collect the aforesaid rents;
but such privilege of Mortgagor to collect rents as aforesaid shall not operate to permit the collection by Mortgagor of any installment
of rent for more than one month in advance.

 

    	 	5	 

     

    

 

2.14.         Mortgagor
will not, without the prior written consent of Mortgagee, assign the rents of the Mortgaged Property or any part thereof, nor consent
(other than in the ordinary course of business) to the cancellation, modification or surrender of any lease now or hereafter covering
the Mortgaged Property, or any part thereof; nor accept any prepayment of rents under any such lease more than one month in advance;
and any such purported assignment, cancellation, modification, surrender or prepayment made without consent of Mortgagee shall
be void as against Mortgagee.

 

2.15.         Mortgagor
shall, upon the request of Mortgagee, given 15 days in advance, furnish a duly acknowledged written statement to Mortgagee, or
any proposed assignee of this Mortgage, setting forth the amount of the Obligations and stating either that no off-sets or defenses
exist against the Obligations, or, if such off-sets or defenses are alleged to exist, the nature and amount thereof.

 

2.16.         Mortgagor
agrees not to do or suffer any act or thing which would impair the security of the Obligations or of the lien of this Mortgage
upon the Mortgaged Property, or the rents, issues or profits thereof.

 

2.17.         Mortgagor
shall, at its sole cost and expense, within ninety (90) days after the termination of each calendar year, furnish Mortgagee with
a copy of Mortgagor’s audited financial statements, for the preceding fiscal year relating to the operation of Mortgagor’s
business.

 

ARTICLE III

 

Environmental
Matters, Representations and Warranties.

 

3.1.          Mortgagor
shall comply in all material respects with all Applicable Environmental Laws. As set forth herein, “Applicable Environmental
Laws” shall mean any and all existing or future federal, state and local statutes, ordinances, regulations, rules, executive
orders, standards and requirements, including the requirements imposed by common law, concerning or relating to industrial hygiene
and the protection of heath and the environment including, without limitation: (i) the Comprehensive Environmental Response, Compensation
and Liability act of 1980, as amended, 42 U.S.C. 9601 et seq. (“CERCLA”); (ii) the Resource Conservation
and Recovery Act of 1976, as amended, 42 U.S.C. 6901 et. seq. (“RCRA”); (iii) the Clean Air Act,
as amended, 42 U.S.C. 7901 et seq.; (iv) the Clean Water Act, as amended, 33 U.S.C. 1251 et seq.; (v)
the Hazardous Materials Transportation Act, as amended, 49 U.S.C. 1801 et seq.; (vi) the New Jersey Industrial Site
Recovery Act, formerly known as the Environmental Cleanup Responsibility Act, as amended, N.J.S.A. 13:1K-6 et seq.
(“ISRA”); (vii) the New Jersey Spill Compensation and Control Act, as amended, N.J.S.A. 58:10-23.11b et
seq. (“Spill Act”); (viii) the New Jersey Underground Storage of Hazardous Substances Act, as amended,
N.J.S.A. 58:10A-21 et seq.; and (ix) the New Jersey Water Pollution Control Act, as amended, N.J.S.A. 58:10A-1 et
seq. Any terms mentioned herein which are defined in any Applicable Environmental Law shall have the meanings ascribed to
such terms in said laws; provided, however, that if any of such laws are amended so as to broaden any term defined therein, such
broader meaning shall apply subsequent to the effective date of such amendment.

 

3.2.          Mortgagor
represents and warrants that Mortgagor has not and will not engage in operations upon the Mortgaged Property, which involve the
generation, manufacture, refining, transportation, treatment, use, storage, handling, release, or disposal of any Hazardous Materials
(as herein defined) other than in compliance with all applicable laws.

 

3.3.          For
the purposes of this Mortgage, the term “Hazardous Materials” shall include, but shall not be limited to, petroleum
fuel products, any petroleum or petroleum byproducts, PCBs, asbestos, friable asbestos or asbestos-containing material, transformers
or other equipment which contain dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million,
any flammable explosives, radioactive materials, any “Hazardous Substance”, as such term is defined in 42 U.S.C. 9601(14)
or N.J.A.C.7:1E-1.7, (herein, “Hazardous Substance”), any “Hazardous Waste”, as such term is defined
in 42 U.S.C. 6903 (5) (herein, “Hazardous Waste”), or any other material, substance, pollutant or contaminant
that is considered hazardous, radioactive or toxic under any applicable federal, state or local statues, ordinances, rules or regulations
now or at any time hereafter in effect. “Toxic Mold” shall mean any fungal or bacterial bioaerosol (including,
without limitation, Stachybotrys chartarum (“black mold”), spores, mycotoxins, endotoxins, bacterial cells,
and volatile organic compounds (VOCs)), or any other mold or fungus, in, on or affecting the Mortgaged Property, which is of a
type determined by the application of reasonably acceptable scientific practices to pose a risk to human health or the environment
or could have a material adverse effect on the value of the Mortgaged Property.

 

    	 	6	 

     

    

 

3.4.          Mortgagor
shall not cause or permit to exist, as a result of any intentional or unintentional action or omission on its part, or any tenant’s
part, any releasing, spilling, leaking, pumping, pouring, emitting, emptying, growing or dumping from, on or about the Mortgaged
Property of any Hazardous Materials. Mortgagor will promptly cause the removal and remediation of any Hazardous Materials which
may hereafter be found on the Mortgaged Property, to a level consistent with Mortgagor’s intended use of the Mortgaged Property.

 

3.5.          Mortgagor
represents and warrants that there is no Toxic Mold, or wet or dry rot on or about the Mortgaged Property.

 

3.6.          Mortgagor
will permit Mortgagee and Mortgagee’s representatives to enter the Mortgaged Property at reasonable times to inspect the
same, for purposes of making site and building investigations and performing soil, groundwater, structural and other tests, upon
three days prior notice to Mortgagor. Mortgagor shall provide Mortgagee, its agents, employees, and representatives from time to
time upon request with access to and copies of any and all data and documents relating to or dealing with any potentially Hazardous
Materials used, generated, manufactured, found, stored or disposed of, on, under, or about the Mortgaged Property or transported
to or from the Mortgaged Property within thirty (30) days of a request therefore. Mortgagor shall bear the cost of such copies
and reimburse Mortgagee for all reasonable attorneys’ fees, copy costs, and other related costs incurred to procure such
information as Mortgagee, in its sole discretion deems necessary.

 

3.7.          Mortgagor
shall furnish to Mortgagee, immediately upon receipt or dispatch, a copy of any notice, summons, citation, directive, letter or
other written communication from or to any federal, state or local environmental agency or department, which may evidence or result
in a liability under any Environmental Law such that the costs of correcting, or of paying penalties assessed in connection with,
such liability would have a material adverse effect upon the business of Mortgagor as now conducted or upon Mortgagor’s business,
operations, properties or condition, financial or otherwise. In such event, Mortgagor shall use diligent efforts to complete all
remediation which may be required by such communication from any federal, state, county, municipal or other administrative, investigative,
prosecutorial or enforcement agency or environmental or occupational safety regulatory agency (“Environmental Regulator”)
and to obtain from all such Environmental Regulators having jurisdiction thereof, and deliver to Mortgagee as received, such approvals
and certifications as can be obtained from such agencies from time to time to confirm Mortgagor’s completion of all remediation
and Mortgagor’s compliance with all governmental requirements applicable thereto.

 

3.8.          In
the event of failure of Mortgagor to comply with any provision of this Mortgage or any other Loan Document relating to Hazardous
Substances, Environmental Laws or Environmental Regulators, or if Mortgagee shall have reason to believe that any Hazardous Substance
has been or is likely to be released or grow on, in or under the Mortgaged Property (except in compliance with all Environmental
Laws), Mortgagee may do any or all of the following: (i) Mortgagee shall have the right to investigate, or to demand that Mortgagor
investigate and report to Mortgagee on (in which case Mortgagor shall investigate and report to Mortgagee on) the result of the
investigation of such location, and if Mortgagee requests, provide this investigation through an independent reputable environmental
consulting or engineering firm acceptable to Mortgagee; (ii) without obligation to do so, to cure such default or to comply or
cause compliance, or to demand that Mortgagor cure such default or comply or cause compliance, with any or all Environmental Laws.
All of the foregoing shall be at the expense of Mortgagor, and any expense incurred by Mortgagee in connection with any of the
foregoing (including without limitation its expenses relating to attorneys’ fees and any environmental consultants or engineers)
shall be additional obligation of Mortgagor hereunder which shall be payable to Mortgagee upon demand, with interest computed at
the rate set forth in the Loan Agreement from the date(s) upon which said costs and expenses were incurred by Mortgagee.

 

    	 	7	 

     

    

 

3.9.          To
the maximum extent permitted by applicable law, Mortgagor, for itself and its successors (herein, “Indemnifying Parties”),
shall jointly and severally indemnify, hold harmless, and upon request defend Mortgagee and its shareholders, officers, directors,
employees, attorneys and agents, and their respective successors and assigns (collectively, the “Indemnified Parties”)
from and against any and all claims and liabilities asserted against any Indemnified Party by any Indemnifying Party or any third
party (including without limitation for negligence or gross negligence) (herein, “Claims”), and will pay and
reimburse to the Indemnified Parties all losses, payments, reasonable costs and expenses associated therewith, or with the defense
of all Indemnified Parties (including without limitation reasonable attorneys’ fees) which any Indemnified Party may suffer,
incur or be exposed to by reason of or in connection with or rising out of the transport, release, treatment, processing, manufacture,
deposit, storage, disposal, burial, dumping, injecting, spilling, leaking or placement at any time heretofore or hereafter, by
any person or entity, of any Hazardous Material, including but not limited to any of the following whether incurred by an Indemnified
Party, an Indemnifying Party or any third party: (1) costs of or liability for investigation, monitoring, boring, testing and evaluation;
(2) costs or liabilities for abatement, correction, response, cleanup, removal or remediation; (3) fines, damages, penalties and
other liabilities; (4) liability for personal injury or property damage.

 

3.10.         The
Indemnifying Parties’ obligations under this Article III shall survive foreclosure, the satisfaction, release or cancellation
of this Mortgage, or any other termination or release of the lien created hereby.

 

ARTICLE IV

 

Insurance, Damage
or Destruction

 

4.1.          Mortgagor
will insure itself and the Mortgaged Property against such perils and to such limits as Mortgagee shall reasonably require for
the full replacement value of the Mortgaged Property, and Mortgagor shall provide evidence of such coverages as Mortgagee may reasonably
request. All such insurance shall be in such forms and with such companies, and written in such amounts and with such deductibles
and endorsements, as may be reasonably satisfactory to Mortgagee from time to time, and losses thereunder shall be payable to Mortgagee
under a standard form of mortgagee endorsement and shall require that the insurer provide Mortgagee with thirty (30) days notice
in the event of cancellation.

 

4.2.          Mortgagor
will promptly notify Mortgagee of any loss thereunder, and Mortgagee may, after notice of its intention to do so to Mortgagor,
make proof of loss thereof if not made within a reasonable time by Mortgagor. After default Mortgagee may, after notice of its
intention to do so to Mortgagor, on behalf of Mortgagor, adjust and compromise any claims under such insurance and collect and
receive the proceeds thereof and endorse drafts and Mortgagee is hereby irrevocably appointed attorney-in-fact of Mortgagor for
such purposes. Mortgagee may deduct from such proceeds any expenses properly incurred by Mortgagee in collecting same, including
reasonable counsel fees. Mortgagee shall hold such proceeds for the purposes set forth in Article VI of this Mortgage.

 

4.3.          At
least thirty (30) days prior to the expiration of the term of any insurance policy required hereunder, Mortgagor shall provide
Mortgagee with satisfactory evidence of the renewal of such policy. If Mortgagor shall fail to procure, pay for and deliver to
Mortgagee any policy or policies of insurance or renewals thereof, Mortgagee may at its option, but shall be under no obligation
to do so, effect such insurance and pay the premiums therefor, and Mortgagor will repay to Mortgagee on demand any premiums so
paid, with interest, at the rate set forth in the Loan Agreement, and until so paid, the same shall be secured by this Mortgage.

 

4.4.          Upon
the written request of Mortgagee, Mortgagor will pay to Mortgagee monthly one-twelfth of the annual premiums for the insurance
required to be maintained under this Mortgage. The terms and conditions of Article I hereof relating to escrow payments for Taxes
and similar charges shall also apply to such insurance premium escrow payments.

 

    	 	8	 

     

    

 

ARTICLE
V

 

Condemnation

 

5.1.          Mortgagor
immediately upon obtaining knowledge of the institution of any proceedings for the condemnation of the Mortgaged Property or any
part thereof shall notify Mortgagee of the pendency of such proceedings. Unless and until Mortgagee shall notify Mortgagor of Mortgagee’s
intent to appear and prosecute such proceedings, pursuant to the appointment and assignment given herein by Mortgagor to Mortgagee,
Mortgagor may appear in and prosecute such proceedings in any lawful manner; provided, however, that Mortgagor shall have no right
or authority to execute any instrument of conveyance or confirmation in favor of the condemnor except subject hereto, nor to accept
any payment or settle or compromise any claim of Mortgagor arising out of such condemnation proceedings without the consent of
Mortgagee. Mortgagee’s election not to appear in or prosecute such proceedings shall not diminish any right Mortgagee may
have to receive any amount paid in connection with such condemnation and to apply such funds as herein provided.

 

ARTICLE
VI

 

Distribution Upon Damage, Destruction or Condemnation

 

6.1.          In
the event the whole or materially all of the Mortgaged Property shall be destroyed or damaged, Mortgagee shall have the right to
collect the proceeds of any insurance and to retain and apply such proceeds, at its election, to the reduction of the Obligations
or to restoration, repair, replacement, rebuilding or alteration (herein sometimes collectively called the “Restoration”)
of the Mortgaged Property. In the event the whole or materially all of the Mortgaged Property shall be taken in condemnation proceedings
or by agreement between Mortgagor and Mortgagee and the condemning authority, Mortgagee shall apply such award or proceeds thereof
first to payment of the Obligations, and any balance then remaining shall be paid to Mortgagor. For the purposes of this Article
VI, “materially all of the Mortgaged Property” shall be deemed to have been damaged, destroyed or taken if the portion
of the Mortgaged Property not so damaged, destroyed or taken cannot be repaired or reconstructed so as to constitute a complete
structure and facility usable in substantially the manner as prior to the damage, destruction or taking.

 

6.2.          So
long as no Event of Default has occurred, in the event of partial destruction or partial condemnation, all of the proceeds or awards
shall be collected and held by Mortgagee, and shall be applied by Mortgagee to the payment of the Restoration, from time to time
as the Restoration progresses, upon the written request of Mortgagor, so long as:

 

(a)          Such
proceeds are, in Mortgagee’s reasonable judgment, sufficient to cover the cost of such Restoration or, if insufficient, Mortgagor
deposits with Mortgagee the amount of any such deficiency,

 

(b)          Mortgagor
shall deliver to Mortgagee contracts, plans and specifications for the Restoration which are satisfactory to Mortgagee,

 

(c)          the
work for which payment is requested has been done in a good and workmanlike manner and Mortgagor presents evidence satisfactory
to Mortgagee of amounts owed or paid by Mortgagor for completed Restoration work,

 

(d)          The
Mortgaged Property, after such Restoration is or will be, in the reasonable judgment of Mortgagee, of an economic utility not less
than that of the Mortgaged Property prior to the casualty or condemnation, and

 

(e)          Mortgagor
shall comply with such further conditions in connection with the use of such proceeds or award as Mortgagee may reasonably request.

 

Any balance remaining
in the hands of Mortgagee after payment of such Restoration shall be retained by Mortgagee and applied to the payment of the Obligations.

 

    	 	9	 

     

    

 

6.3.          Notwithstanding
the foregoing provisions of this Article VI regarding insurance or condemnation proceeds, if no Event of Default has occurred,
and if such proceeds do not exceed $250,000.00, and if the undamaged or uncondemned portion of the Mortgaged Property can be continuously
used during the Restoration period as a complete structure and operating facility in substantially the same manner as prior to
the damage, Mortgagor shall have the right to collect the insurance or condemnation proceeds and apply them to the Restoration.

 

6.4.          No
damage, destruction or condemnation of the Mortgaged Property nor any application of insurance or condemnation proceeds to the
payment of the Obligations shall postpone or reduce the amount of any of the current installments of principal or interest becoming
due under the Obligations which shall continue to be made in accordance with the terms of the Obligations until the Obligations
and all interest due thereunder are paid in full.

 

ARTICLE
VII

 

Events of Default and Remedies

 

7.1.          Each
of the following shall constitute an “Event of Default” under this Mortgage:

 

(a)          Failure
of Mortgagor to make any payment required to be made by it hereunder, within thirty (30) days of the date when due;

 

(b)          Failure
of Mortgagor to observe or perform any covenant, agreement, undertaking, performance or obligation of any provision hereof or if
Mortgagor shall in any other way be in default hereunder or under any of the Loan Documents, except as otherwise specifically provided
herein, and such failure continues for forty five (45) days after receipt by Mortgagor of written notice from Mortgagee specifying
such failure; or

 

(c)          Failure
of Mortgagor to provide the insurance required in Article IV hereof; or

 

(d)          The
occurrence of an Event of Default as defined in the Loan Agreement; or

 

(e)          Any
assignment for the benefit of creditors made by Mortgagor; or

 

(f)          Appointment
of a custodian, receiver, liquidator or trustee of Mortgagor or of any of the property of Mortgagor; insolvency of Mortgagor; the
filing by or against Mortgagor  of any petition for the bankruptcy, reorganization or arrangement of Mortgagor pursuant
to the Federal Bankruptcy Code or any similar federal or state statute and, in the case of any such petition filed against Mortgagor,
such petition is not dismissed within ninety (90) days; or the institution of any proceeding for the dissolution or liquidation
of Mortgagor.

 

7.2.          Upon
the occurrence of an Event of Default, Mortgagee shall have the right and is hereby authorized, but without any obligation to do
so, to perform the defaulted obligation and to discharge Mortgagor’s obligations on behalf of Mortgagor, and to pay any sums
necessary for that purpose, and the sums so expended by Mortgagee shall be an obligation of Mortgagor, shall bear interest at the
rate of interest set forth in the Loan Agreement, be payable on demand, and be added to the Obligations. Mortgagee shall be subrogated
to all the rights, equities and liens discharged by any such expenditure. Such performance by Mortgagee on behalf of Mortgagor
shall not constitute a waiver by Mortgagee of such default and shall not limit Mortgagee’s rights, remedies and recourses
hereunder, or the Obligations, or as otherwise provided at law or in equity. Notwithstanding that the Obligations shall not have
been declared due and payable upon any such default, the Obligations shall bear interest at the rate of interest set forth in the
Loan Agreement from the date of notice and demand therefor by Mortgagee until such default shall have been completely cured and
removed to the satisfaction of Mortgagee.

 

    	 	10	 

     

    

 

7.3.          Upon
the occurrence of an Event of Default, the entire unpaid balance of the principal, accrued interest and all other sums secured
by this Mortgage, shall, at the option of Mortgagee, become immediately due and payable without notice or demand and Mortgagee
shall have and may exercise all the rights and remedies permitted by law, including without limitation the right to foreclose this
Mortgage, and proceed thereon to final judgment and execution thereon for the entire unpaid balance of said Obligations, with interest,
at the rate of interest set forth in the Loan Agreement and pursuant to the methods of calculation specified in the Loan Agreement,
together with all other sums secured by this Mortgage, all costs of suits, interest at the rate of interest set forth in the Loan
Agreement on any judgment obtained by Mortgagee from and after the date of any Sheriff’s Sale of the Mortgaged Property until
actual payment is made by the Sheriff of the full amount due Mortgagee, and reasonable attorney’s fees, without further stay,
any law, usage, or custom to the contrary notwithstanding. In any such foreclosure proceedings, the Mortgaged Property shall be
sold, at the sole option of Mortgagee, either (a) in one lot or unit and, as an entirety; or (b) in such lots or units and in such
order and manner as may be required by law; or (c) in the absence of any such requirement, in such lots or units and in such order
and manner as Mortgagee may determine in its sole discretion.

 

7.4.          Upon
the occurrence of an Event of Default, Mortgagee shall have the right, without further notice or demand and without the appointment
of a receiver, to enter immediately upon and take possession of the Mortgaged Property, without further consent or assignment of
Mortgagor or any subsequent owner of the Mortgaged Property, with the right to let the Mortgaged Property, or any part thereof,
and to collect and receive all of the rents, issues, profits and other amounts due or to become due to Mortgagor or any such subsequent
owner and to apply the same in such order of priority as Mortgagee shall determine at its sole option, after payment of all necessary
charges and expenses in connection with the operation of the Mortgaged Property (including any managing agent’s commission),
on account of interest, principal, taxes, water charges and assessments, insurance premiums and any advances for improvements,
alterations or repairs or otherwise pursuant to the terms hereof for the account of Mortgagor, or on account of the Obligations.
Mortgagee may institute legal proceedings against any tenant of the Mortgaged Property who fails to comply with the provisions
of his lease. If Mortgagor or any such subsequent owner is occupying the Mortgaged Property or any part thereof, such Mortgagor
or subsequent owner will either immediately vacate and surrender possession thereof to Mortgagee or pay to Mortgagee a reasonable
rental for the use thereof, monthly in advance, and, in default of so doing, such Mortgagor or subsequent owner may be dispossessed
by legal proceedings or otherwise.

 

7.5.          All
monies received by Mortgagee by virtue of the assignments made herein to Mortgagee, after payment therefrom of the costs and expenses
incident to the enforcement or collection of the assigned rights or claims, shall be applied to the payment of the Obligations.

 

7.6.          Upon
the occurrence of an Event of Default, Mortgagee may proceed to protect and enforce its rights under this Mortgage by suit for
specific performance of any covenant herein contained, or in aid of the execution of any power herein granted, or for the foreclosure
of this Mortgage and the sale of the Mortgaged Property under the judgment or decree of a court of competent jurisdiction, or for
the enforcement of any other right as Mortgagee shall deem most effectual for such purpose. The foregoing rights shall be in addition
to, and not in lieu of, the rights of Mortgagee as a secured creditor under the UCC with respect to any portion of the Mortgaged
Property which is subject to the UCC. Mortgagee may also proceed in any other manner permitted by law to enforce its rights hereunder
and under the Loan Agreement of even date herewith.

 

7.7.          No
failure or delay on the part of Mortgagee in exercising any right, power or privilege under this Mortgage, and no course of dealings
between Mortgagor and Mortgagee, shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power
or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege. No
notice to or demand on Mortgagor shall entitle Mortgagor to any other or further notice or demand in similar or other circumstances
or constitute a waiver of the right of Mortgagee to any other or further action in the same or other circumstances without notice
or demand.

 

7.8.          In
any action to foreclose this Mortgage, Mortgagee, to the fullest extent permitted by law, shall be entitled as a matter of right
to the appointment of a receiver of the Mortgaged Property and of the rents, revenues, issues, income and profits thereof, without
notice or demand, and without regard to the adequacy of the security for the Obligations or the solvency of Mortgagor.

 

7.9.          Upon
the occurrence of any Event of Default, Mortgagor shall pay monthly in advance to Mortgagee, or to any receiver appointed at the
request of Mortgagee to collect the rents, revenues, issues and profits of the Mortgaged Property, the fair and reasonable rental
value for the use and occupancy of the Mortgaged Property or of such part thereof as may be possessed by Mortgagor. Upon default
in payment thereof, Mortgagor shall vacate and surrender possession of the Mortgaged Property to Mortgagee or such receiver, and
upon a failure so to do may be evicted by summary proceedings, in the manner hereinabove provided or otherwise.

 

    	 	11	 

     

    

 

7.10.         The
rights and remedies of Mortgagee expressed or contained in this Mortgage are cumulative and no one of them shall be deemed to be
exclusive of the others or of any right or remedy Mortgagee may now or hereafter have at law or in equity. The covenants of this
Mortgage shall run with the land and bind Mortgagor and, unless the context clearly indicates a contrary intent or unless otherwise
specifically provided herein, its successors and assigns and all subsequent owners, encumbrancers, tenants and subtenants of the
Mortgaged Property and shall inure to the benefit of Mortgagee and its successors and assigns and all subsequent holders of this
Mortgage and the Obligations.

 

7.11.         Mortgagee
may in its discretion from time to time grant to Mortgagor indulgences, forbearances and extensions of the Obligations, may release,
with or without consideration, any portion of the Mortgaged Property from the lien hereof, and may accept other and further collateral
security for the payment of and strict and faithful performance of the Obligations, all without otherwise affecting the lien or
priority of this Mortgage, and the release of any portion of the Mortgaged Property from the lien hereof shall not affect the lien
of this Mortgage with respect to the remainder of the Mortgaged Property.

 

7.12.         Mortgagor
hereby waives and relinquishes the benefits of all present and future laws (i) exempting the Mortgaged Property or any other property
or any part of the proceeds of sale thereof from attachment, levy or sale on execution; (ii) staying execution or other process;
and (iii) requiring valuation or appraisement of the Mortgaged Property or any other property levied or sold upon execution under
any judgment recovered for the Obligations. Notwithstanding the foregoing, Mortgagor hereby agrees
to pay all fees and costs incurred by Mortgagee in connection with exercising its rights under this Mortgage (including, without
limitation, attorneys’ fees), and Mortgagor shall be so obligated before or after a judgment has been rendered against
Mortgagor by Mortgagee hereunder.

 

7.13.         The
Mortgagor acknowledges and agrees that the occurrence of an Event of Default under the terms of this Mortgage shall constitute
a default under each of the other Loan Documents and under any documents, instruments or agreements (the “Other Agreements”),
whether evidencing any other loan now existing or hereafter made by the Mortgagee to the Mortgagor, or otherwise, and a default
under the other Loan Documents or any of them or any of the Other Agreements shall constitute an Event of Default under this Mortgage.
The security interests, liens and other rights and interests in and relative to any of the collateral now or hereafter granted
to the Mortgagee by the Mortgagor by or in any instrument or agreement, including but not limited to this Mortgage and the other
Loan Documents, shall serve as security for any and all liabilities of the Mortgagor to the Mortgagee, including but not limited
to the liabilities described in this Mortgage and the other Loan Documents, and, for the repayment thereof, the Mortgagee may resort
to any security held by it in such order and manner as it may elect.

 

ARTICLE
VIII

 

Indemnity

 

8.1.          Each
Indemnifying Party agrees to indemnify and to hold harmless and upon request defend the Indemnified Parties of and from any and
all liability, loss and damage (including without limitation those involving death, personal injury or property damage), and all
costs and expenses (including without limitation attorneys’ fees and litigation costs) which any one or more Indemnified
Parties may or might incur by reason of any event or circumstance occurring on the Mortgaged Property, and any action or omission
of Mortgagor or its agents or invitees, and the failure of Mortgagor to comply with, or the failure of the Mortgaged Property to
be kept in compliance with, any applicable law, rule or regulation (including the Environmental Laws, as to which Article III also
applies), and the breach of any other agreement, contract or obligation under which the Indemnifying Parties are obligated, except
solely to the extent that such liability, loss or damage is proximately and primarily caused by the willful misconduct of any Indemnified
Party, or to the extent of the negligence of any Indemnified Party, or by any action or omission of any Indemnified Party that
either violates applicable law or breaches an express contractual obligation of Mortgagee to Indemnifying Party. No Indemnifying
Party shall have the right to settle any claim without the consent of the Indemnified Parties, which consent shall not be unreasonably
withheld so long as such settlement will not (a) result in any material loss to any Indemnified Party which is not so indemnified
by Indemnifying Party, or (b) have any other materially adverse effect on the Indemnified Party. Mortgagee agrees to act reasonably
in giving the Indemnifying Parties notice of any claim that is subject to indemnification under this Agreement. The indemnities
contained in this provision are specifically excepted from any limitation of liability provision contained in this or any of the
Other Agreements. The Indemnifying Parties’ obligations under this Article VIII shall survive foreclosure, the satisfaction,
release or cancellation of this Mortgage, or any other termination or release of the lien created hereby.

 

    	 	12	 

     

    

 

ARTICLE
IX

 

Miscellaneous Provisions

 

9.1.          All
notices, demands, requests and consents required under this Mortgage shall be in writing. All such notices, demands, requests and
consents shall be deemed to have been properly given if sent or given in accordance with the notice provisions set forth in Section
11.1 of the Loan Agreement.

 

9.2.          If
Mortgagor complies with the provisions of this Mortgage and pays to Mortgagee all sums secured hereby in accordance with the terms
of and at the times provided in the Loan Agreement and this Mortgage, without deduction, fraud or delay, then this Mortgage and
the estate and security interest hereby granted and created shall then cease, terminate and become void, and Mortgagee shall execute
and deliver such mortgage satisfactions and other documents as Mortgagor may reasonably request to evidence the same.

 

9.3.          Mortgagor
shall promptly cause this Mortgage to be duly recorded in the Office for the Recording of Deeds and Mortgages in and for Middlesex
County, New Jersey and shall pay all recording fees and other costs incurred in connection therewith.

 

9.4.          All
amendments and modifications of this Mortgage must be in writing.

 

9.5.          If
any term or provision of this Mortgage or the application thereof to any person or circumstances shall, to any extent, be invalid
or unenforceable, the remainder of this Mortgage, or the application of such term or provision to persons or circumstances other
than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this
Mortgage shall be valid and be enforced to the fullest extent permitted by law.

 

9.6.          This
Mortgage is intended to secure present and future advances and the lien of future advances shall relate back to the date of this
Mortgage, even if such advances are made under a renewal, extension, modification or refinancing of the Obligations, and even if
the Obligations are assumed by a third party. Mortgagor agrees that full repayment of the Obligations secured hereby at any time
shall not extinguish the security of this Mortgage for obligations which Mortgagor may incur to Mortgagee at anytime while the
Obligations remain outstanding. Mortgagee may (but is not obligated to) make an advance or advances to pay interest, penalties,
fees, charges or other obligations which Mortgagor may owe Mortgagee, and all such advances shall be secured by this Mortgage with
lien priority from the time this Mortgage was left for record. If Mortgagee makes such an advance after having notified Mortgagor
of a default under this Mortgage or the Obligations, any such advances shall be treated as expenses incurred by Mortgagee by reason
of Mortgagor’s default under this Mortgage.

 

9.7.          This
Mortgage is granted in connection with a commercial loan transaction and is not a residential mortgage; it shall not be construed
to be pursuant to a consumer transaction or eligible for the protections granted to a mortgage pursuant to any such consumer or
residential transaction.

 

9.8.          This
Mortgage and all terms, covenants and conditions hereof shall inure to the benefit of and bind the parties hereto, their successors
and assigns, to the extent assignments are permitted herein.

 

9.9.          MORTGAGOR
HAS RECEIVED A FULLY EXECUTED COPY OF THIS MORTGAGE WITHOUT CHARGE.

 

    	 	13	 

     

    

 

9.10.         Waiver
of Jury Trial. MORTGAGOR AND MORTGAGEE IRREVOCABLY, AS AN INDEPENDENT COVENANT, WAIVE JURY TRIAL AND THE RIGHT THERETO IN ANY ACTION
OR PROCEEDING BETWEEN MORTGAGOR AND MORTGAGEE, WHETHER HEREUNDER OR OTHERWISE.

 

9.11.         It
is the intention of Mortgagor and Mortgagee that the Existing Mortgage be amended and restated in its entirety pursuant to this
Mortgage and that this Mortgage does not constitute a novation or termination of the liabilities and obligations of the applicable
parties under the Existing Mortgage. Mortgagor further acknowledges and agrees that this Mortgage constitutes an amendment of the
Existing Mortgage made in accordance with the terms of the Existing Mortgage. From and after the date hereof, all references to
the Existing Mortgage (howsoever defined) contained in any of the Loan Documents shall be deemed to refer to this Mortgage.

 

[Remainder of Page Intentionally Left Blank]

 

    	 	14	 

     

    

 

IN WITNESS WHEREOF, Mortgagor has executed
and delivered this Mortgage on the day and year above written.

 

	 	 	BLONDER TONGUE LABORATORIES, INC., a Delaware corporation
	 	 	 	 
	 	 	By:	/s/ Eric Skolnik
	 	 	 	Eric Skolnik, Senior Vice President
	(CORPORATE SEAL)	 	 	 
	 	 	Attest: 	/s/ Eric Skolnik
	 	 	 	Eric Skolnik, Assistant Secretary

 

The address of Mortgagee is:

 

21 Desai Court

Freehold, New Jersey 07728

On behalf of Mortgagee

 

	/s/ Robert J. Palle	 
	ROBERT J. PALLÉ, AS AGENT, MORTGAGEE	 

 

[Signature Page to Amended and Restated
Mortgage and Security Agreement]

 

     

     

    

 

	STATE OF NEW JERSEY:	 	 
	 	:	ss.
	COUNTY OF MIDDLESEX:	:	 

 

On this the _______ day
of March, 2016, before me, the undersigned officer, personally appeared ______________________, who known to me (or satisfactorily
proven) to be the persons subscribed to the within instrument, and acknowledged that they executed the foregoing instrument for
the purposes therein contained by signing their name(s) as their own free act and deed.

 

IN WITNESS WHEREOF, I hereunto set my hand
and official seal.

 

	 	 
	 	Notary Public
	 	 
	 	My Commission Expires:

 

[Signature Page to Amended and Restated
Mortgage and Security Agreement]

 

     

     

    

 

EXHIBIT “A”

 

Legal Description

 

Real property in the Township 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. Northerly along a curve to the left, having a radius of 1,000.00
feet, an arc length of 76.55 feet to a point of tangency; thence

 

3. North 02 degrees 26 minutes 50 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 along a curve to the right, having a radius of 50.00 feet, an arc length of 78.54 feet to 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. Easterly along a curve to the left, having a radius of 200.00
feet, an arc length of 210.90 feet to a point of tangency; thence

 

7. North 32 degrees 01 minutes 44 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, 396.54 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.

 

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.

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