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    EXHIBIT
10.32

    

    COMPENSATORY
ARRANGEMENT FOR

    PETER
DALY, SENIOR VICE-PRESIDENT OF SALES AND MARKETING

    

    Effective
as of January 1, 2007

    

    Mr.
Daly’s compensation will be variable and determined as a percentage of the
Company’s Adjusted Net Sales (as defined below) as follows:

    

    
      	
              Commission
      Percentage

            	
              Adjusted Net Sales Per
      Year

            
	 
      	 
      
	
              0.55%

            	
              Up
      To $30,000,000

            
	
              0.75%

            	
                            
      $30,000,0001 to $50,000,000

            
	
              0.50%

            	
                    $50,000,0001
      and over

            

    

    

    On an
annual base the Company’s Chief Executive Officer will determine a baseline
gross profit margin for the ensuing fiscal year based on the Company’s annual
budget, anticipated product mix, prior year’s gross margin and other
factors.  For purposes of Mr. Daly’s compensation arrangement,
Adjusted Net Sales shall be equal to the Company’s actual net sales for the
fiscal year multiplied by a gross margin adjustment to take into account certain
decreases in the Company’s actual gross margin.  The gross margin
adjustment shall be a fraction the numerator of which is the actual gross margin
on net sales for the fiscal year and the denominator of which is the baseline
gross margin.   If the actual gross margin exceeds the baseline
gross margin or the decrease in actual gross margin is less than ten percent
(10%) of the baseline gross margin, then actual net sales rather than adjusted
net sales for the fiscal year will be used to determine Mr. Daly’s
compensation.  Any change in the Company’s gross margin resulting from
increases or decreases in inventory reserves during the applicable fiscal year
will not be included in the calculation of actual gross margin for purposes of
calculating Mr. Daly’s compensation.  Mr. Daly will receive periodic
draws against his variable compensation, subject to monthly adjustments, in
accordance with the Company’s policies relating to variable compensation
arrangements with its employees.  Mr. Daly’s compensation arrangement
will expire, unless otherwise renewed by the Compensation Committee, on December
31, 2008.

    

    Mr. Daly
will continue to participate in the Blonder Tongue Executive Officer Bonus Plan
for the fiscal year ending December 31, 2007.  Mr. Daly is eligible to
participate in such Executive Officer Bonus Plan with all other executive
officers of the Company in future years to the extent determined by the
Compensation Committee of the Board of Directors.  From time to time,
as determined by the Compensation Committee, Mr. Daly may be granted
equity-based awards including stock purchase options, stock appreciation rights
or stock awards.  Mr. Daly’s total compensation from all sources in
any fiscal year will be capped at $1,000,000.ex10-34.htm

    EXHIBIT
10.34

    

    FIFTH AMENDMENT
TO

    CREDIT AND SECURITY
AGREEMENT

     

    FIFTH
AMENDMENT TO CREDIT AND SECURITY AGREEMENT, executed on the 28th day of
March, 2008, to be effective on the 28th day of
March, 2008 (the "Effective Date"), by and among Blonder Tongue Laboratories,
Inc., a Delaware corporation (the "Borrower"), Blonder Tongue Investment
Company, a Delaware corporation ("BTIC"), National City Business Credit, Inc.,
an Ohio corporation (the "Lender"), and National City Bank, a national banking
association, as the Issuer (the "Issuer") (this "Fifth Amendment").

     

    W I T N E S S E T H:

     

    WHEREAS,
pursuant to that certain Credit and Security Agreement, effective December 29,
2005, by and among the Borrower, BDR Broadband, LLC, a Delaware limited
liability company ("BDR"), the Guarantors party thereto, the Lender and the
Issuer, as amended by that certain (i) First Amendment to Credit and Security
Agreement, effective March 30, 2006, by and among the Borrower, BDR, the
Guarantors party thereto, the Lender and the Issuer, (ii) Letter Agreement,
dated September 11, 2006, by and among the Borrower, BDR, the Guarantors party
thereto, the Lender and the Issuer, (iii) Letter Agreement, dated November 8,
2006, by and among the Borrower, BDR, the Guarantors party thereto, the Lender
and the Issuer, (iv) Letter Agreement, dated December 1, 2006, by and among the
Borrower, BDR, the Guarantors party thereto, the Lender and the Issuer, (v)
Letter Agreement, dated December 15, 2006, by and among the Borrower, BDR, the
Guarantors party thereto, the Lender and the Issuer, (vi) Second Amendment to
Credit and Security Agreement, effective December 15, 2006, by and among the
Borrower, BDR, the Guarantors party thereto, the Lender and the Issuer (the
"Second Amendment"), (vii) Letter Agreement, dated May 1, 2007, by and among the
Borrower, the Guarantors party thereto, the Lender and the Issuer, (viii) Third
Amendment to Credit and Security Agreement, effective August 8, 2007, by and
among the Borrower, the Guarantors party thereto, the Lender and the Issuer, and
(ix) Fourth Amendment to Credit and Security Agreement, effective November 7,
2007, by and among the Borrower, the Guarantors party thereto, the Lender and
the Issuer (as amended, the "Credit Agreement"), the Lender, among other things,
extended to the Borrower (a) a revolving credit facility in the aggregate
principal amount not to exceed Seven Million Five Hundred Thousand and 00/100
Dollars ($7,500,000.00) and (b) a term loan facility in the original principal
amount of Three Million Five Hundred Thousand and 00/100 Dollars
($3,500,000.00);

     

    WHEREAS,
the Borrower desires to amend certain provisions of the Credit Agreement, and
the Lender and the Issuer desire to permit such amendments pursuant to the terms
and conditions set forth herein.

     

    NOW,
THEREFORE, in consideration of the premises contained herein and other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and
intending to be legally bound hereby, the parties hereto agree as
follows:

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    1. All
capitalized terms used herein which are defined in the Credit Agreement shall
have the same meaning herein as in the Credit Agreement unless the context
clearly indicates otherwise.

     

    2. Section
1.1 of the Credit Agreement is hereby amended by amending and restating the
following definitions as follows:

     

    "Revolving Interest
Rate" shall mean an interest rate per annum equal to the sum of the
Alternate Base Rate plus one and one half percent (1.50%).

     

    "Term Loan Rate" shall
mean an interest rate per annum equal to the sum of the Alternate Base Rate plus
one and one half percent (1.50%).

     

    3. Section
6.5(b) of the Credit Agreement is hereby deleted in its entirety and in its
stead is inserted the following:

     

    (b)           Not
permit EBITDA to be less than: (i) negative Two Hundred Eighty Thousand and
00/100 Dollars (-$280,000.00) calculated as of January 31, 2008, for the period
beginning January 1, 2008, through and including January 31, 2008, (ii) negative
Twenty-Five Thousand and 00/100 Dollars (-$25,000.00) calculated as of February
29, 2008, for the period beginning February 1, 2008, through and including
February 29, 2008, and (iii) Three Hundred Twenty-Five Thousand and 00/100
Dollars ($325,000.00) calculated as of March 31, 2008, for the period beginning
March 1, 2008, through and including March 31, 2008.

     

    4. The
provisions of Sections 2 and 3 of this Fifth Amendment shall not become
effective until the Lender has received the following, each in form and
substance acceptable to the Lender:

     

    (a) this
Fifth Amendment, duly executed by each Loan Party, the Lender and the
Issuer;

     

    (b) an
amendment fee in the amount of Twenty-Five Thousand and 00/100 Dollars
($25,000.00);

     

    (c) payment
of all costs and expenses including, without limitation, reasonable attorneys'
fees and disbursements incurred by the Lender on its behalf or on behalf of the
Issuer in connection with this Fifth Amendment; and

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (d) such
other documents as may be reasonably requested by the Lender.

     

    5. Each Loan
Party hereby reconfirms and reaffirms all representations and warranties,
agreements and covenants made by it pursuant to the terms and conditions of the
Credit Agreement and the Other Documents, except as such representations and
warranties, agreements and covenants may have heretofore been amended, modified
or waived in writing in accordance with the Credit Agreement or the Other
Documents, as applicable.

     

    6. Each Loan
Party acknowledges and agrees that, except for such documents, instruments or
agreements that were released in connection with the Second Amendment, each and
every document, instrument or agreement, if any, which at any time has secured
payment of the Obligations including, but not limited to, (i) the Credit
Agreement, (ii) Blocked Account Agreements, (iii) each Guaranty, (iv) the Pledge
Agreements, (v) the Intellectual Property Security Agreement, (vi) the Mortgage,
(vii) the Lease Assignment, and (vii) all UCC-1 financing statements executed in
connection therewith, hereby continue to secure prompt payment when due of the
Obligations.

     

    7. Each Loan
Party hereby represents and warrants to the Lender that (i) such Loan Party has
the legal power and authority to execute and deliver this Fifth Amendment; (ii)
the officers of such Loan Party executing this Fifth Amendment have each been
duly authorized to execute and deliver this Fifth Amendment and all other
documents executed in connection herewith and bind such Loan Party with respect
to the provisions hereof and thereof; (iii) the execution and delivery hereof by
such Loan Party and the performance and observance by such Loan Party of the
provisions hereof and all other documents executed or to be executed herewith,
do not violate or conflict with the organizational documents of such Loan Party
or any Law applicable to such Loan Party or result in a breach of any provision
of or constitute a default under any other agreement or instrument or order,
writ, judgment, injunction or decree to which such Loan Party is a party or by
which it is bound or to which it is subject; and (iv) this Fifth Amendment and
all other documents executed or to be executed by such Loan Party in connection
herewith constitute valid and binding obligations of such Loan Party in every
respect, enforceable in accordance with their respective terms.

     

    8. Each Loan
Party represents and warrants that (i) no Event of Default exists under the
Credit Agreement or the Other Documents, nor will any occur as a result of the
execution and delivery of this Fifth Amendment or the performance or observance
of any provision hereof, (ii) the Schedules attached to and made a part of the
Credit Agreement are true and correct as of the date hereof and there are no
modifications or supplements thereto and (iii) it presently has no claims or
actions of any kind at Law or in equity against the Lender arising out of or in
any way relating to the Credit Agreement or the Other Documents.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    9. Each
reference to the Credit Agreement that is made in the Credit Agreement or any
other document executed or to be executed in connection therewith shall
hereafter be construed as a reference to the Credit Agreement as amended
hereby.

     

    10. The
agreements contained in this Fifth Amendment are limited to the specific
agreements contained herein.  Except as amended hereby, all of the
terms and conditions of the Credit Agreement shall remain in full force and
effect.  This Fifth Amendment amends the Credit Agreement and is not a
novation thereof.

     

    11. This
Fifth Amendment may be executed in any number of counterparts and by the
different parties hereto on separate counterparts each of which, when so
executed, shall be deemed an original, but all such counterparts shall
constitute but one and the same instrument.

     

    12. This
Fifth Amendment shall be governed by, and shall be construed and enforced in
accordance with, the Laws of the Commonwealth of Pennsylvania without regard to
the principles of the conflicts of law thereof.  Each Loan Party
hereby consents to the jurisdiction and venue of the Court of Common Pleas of
Allegheny County, Pennsylvania and the United States District Court for the
Western District of Pennsylvania with respect to any suit arising out of or
mentioning this Fifth Amendment.

     

    [INTENTIONALLY
LEFT BLANK]

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the parties hereto, by their officers thereunto duly
authorized, have executed this Agreement as of the day and year first above
written to be effective on the Effective Date.

     

    BORROWER:

    

    Blonder
Tongue Laboratories, Inc.

     

    By:  /s/ Eric
Skolnik

    Name:
Eric
Skolnik

    Title:
Senior Vice
President

    

    GUARANTOR:

    

    Blonder
Tongue Investment Company

     

    By:  /s/ Eric
Skolnik

    Name:
Eric
Skolnik

    Title:
Senior Vice
President

    

    LENDER:

    

    National
City Business Credit, Inc., as Lender

     

    By: Todd W.
Milenius

     

    Name:  Todd W.
Milenius

    Title:  Vice
President

    

    ISSUER:

    

    National
City Bank, a national banking association, as Issuer

     

    By: Todd W.
Milenius

     

    Name:  Todd W.
Milenius

    Title:  Vice
President

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