Exhibit 10.4
ACQUISITION LOAN NOTE
$19,000,000 New Brunswick, New Jersey
March 25, 1998
FOR VALUE RECEIVED, BLONDER TONGUE LABORATORIES, INC., a Delaware
corporation (the "Borrower"), hereby promises to pay to the order of CORESTATES
BANK, NATIONAL ASSOCIATION (the "Bank") the principal amount of Nineteen Million
Dollars ($19,000,000.00). This Acquisition Loan Note is issued under the Third
Amended and Restated Loan Agreement dated October 29, 1997 by and between the
Borrower and the Bank, as amended by the First Amendment dated March 23, 1998
and may be further amended, modified or restated from time to time (the "Loan
Agreement"). Terms capitalized but not defined herein shall have the meanings
given to them respectively in the Loan Agreement. Reference is made to the Loan
Agreement for a statement of the terms and conditions under which the loan
evidenced hereby has been made, is secured, and may be prepaid or accelerated.
At the election of the Borrower, and as set forth in the Loan Agreement,
interest only shall be payable under this Acquisition Loan Note for a period of
up to 6 months. Thereafter this Acquisition Loan Note shall be repayable in up
to 60 monthly installments as determined in accordance with the Loan Agreement.
Interest shall be determined in accordance with the Loan Agreement and
shall be calculated on the basis of a 360-day year, counting the actual number
of days elapsed. Subsequent to maturity or the occurrence of any Event of
Default, and continuing after the entry of any judgment against the Borrower
with respect to the obligations evidenced by this Note, interest shall accrue at
an annual rate which shall be two percent (2%) above the rate of interest
otherwise payable hereunder. Accrued interest shall be payable monthly on the
first day of each month commencing with the month immediately following the date
hereof and if not paid when due, shall be added to the principal.
The Borrower hereby waives the requirements of demand, presentment,
protest, notice of protest and dishonor and all other demands or notices of any
kind in connection with the delivery, acceptance, performance, default, dishonor
or enforcement of this Note.
The construction, interpretation and enforcement of this Note shall be
governed by the internal laws of the State of New Jersey.
IN WITNESS WHEREOF, and intending to be legally bound hereby, the Borrower
has caused this Note to be executed by its duly authorized officer as of the day
and year first above written.
BLONDER TONGUE LABORATORIES, INC.
By: /s/ Xxxxx X. Xxxxxx
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Name: Xxxxx X. Xxxxxx
Title: President
