Exhibit 99.2 National City National City Center P.O. Box 5756 Cleveland, OH 44101-0756 (216) 222-2000 VIA FAX December 21, 2005 Eric Skolnik Chief Financial Officer Blonder Tongue Laboratories, Inc. One Jake Brown Road Old Bridge, NJ 08857 PHONE: 732-679-4000 FAX: 732-679-3279 Re: USD 3,500,000.00 Interest Rate Swap #7035 Dear Mr. Skolnik, The purpose of this letter is to confirm the terms and conditions of the Swap Transaction entered into between National City Bank and Blonder Tongue Laboratories, Inc. on the Trade Date specified below (the "Swap Transaction"). This letter agreement constitutes a "Confirmation" as referred to in the ISDA Master Agreement specified below. The definitions and provisions contained in the 1991 ISDA Definitions, the 1998 Supplement thereto (the "Definitions") and the 1992 ISDA Master Agreement (as published by the International Swap Dealers Association, Inc.) (the "Master Agreement") are incorporated into this Confirmation. In the event of any inconsistency between this Confirmation and the Definitions or the ISDA Master Agreement, this Confirmation will govern. 1. If you and we are parties to a Master Agreement and National City Bank Schedule to the Master Agreement that set forth the general terms and conditions applicable to Swap Transactions between us (a "ISDA Master Agreement"), this Confirmation supplements, forms a part of and is subject to, such ISDA Master Agreement. If you and we are not yet parties to a ISDA Master Agreement, this Confirmation will supplement, form a part of, and be subject to, the ISDA Master Agreement upon its execution and delivery by you and us. All provisions contained or incorporated by reference in such ISDA Master Agreement shall govern this Confirmation except as expressly modified below. Until a ISDA Master Agreement has been executed, this Confirmation will itself evidence a complete and binding agreement between you and us as to the terms and conditions of the Swap Transaction to which this Confirmation relates. -1- This confirmation will be governed by and construed in accordance with the laws of the State of New York, without reference to choice of law doctrine, provided that this provision will be superseded by any choice of law provision in the ISDA Master Agreement. 2. This Confirmation constitutes a Swap Transaction under the ISDA Master Agreement and the terms of the Swap Transaction to which this Confirmation relates are as follows: Notional Amount: USD 3,500,000.00 Amortization Schedule: See Attached Trade Date: December 21, 2005 Effective Date: January 10, 2006 Termination Date: January 2, 2009. Date subject to adjustment in to adjustment in accordance with the Modified Following Business Day Convention. Fixed Amounts: Fixed Rate Payer: Blonder Tongue Laboratories, Inc. Fixed Rate: 5.130% Fixed Rate Day Count Fraction: Actual/360 Fixed Rate Payer Payment Dates: Monthly, on the first day of each month, commencing on February 1, 2006, through and including Termination Date. Dates subject to adjustment in accordance with the Modified Following Business Day Convention. -2- Floating Amounts Floating Rate Payer: National City Bank Floating Rate Option: USD-LIBOR-BBA which means LIBOR, as determined two (2) London Banking Days preceding the Reset Dates, as published on page 3750 on TELERATE, as of 11:00 a.m., London time Designated Maturity: 1 Month Floating Rate Day Count Fraction: Actual/360 Floating Rate for Initial To Be Determined Calculation Period: Floating Rate Option Reset Dates: First day of each Calculation Period starting on January 10, 2006. Dates subject to adjustment in accordance with the Modified Following Business Day Convention. Floating Rate Payer Payment Dates: Monthly, on the first day of each month, commencing on February 1, 2006, through and including Termination Date. Dates subject to adjustment in accordance with the Modified Following Business Day Convention. Compounding: Not applicable Calculation Agent: National City Bank Business Days: New York City, London -3- Payment Instructions: National City Bank will make/receive payments to/from Blonder Tongue Laboratories, Inc. by credit/debit to the account of Blonder Tongue Laboratories, Inc. at Bank ABA# DDA# Please confirm your acceptance of the above terms by executing this letter agreement. FOR: NATIONAL CITY BANK FOR: BLONDER TONGUE LABORATORIES, INC. By: /s/ Eric Skolnik By: /s/ J. Andrew Dunham Eric Skolnik J. Andrew Dunham Chief Financial Officer Sr. Vice President If you have any questions pertaining to the confirmation, please phone Pat Zann at 216-222-9226. Transaction introduced By NatCity Investments Inc. -4- Sheet 1 - -------------------------------------------------------------------------------- Amortization Schedule for Blonder Tongue Laboratories, Inc. - ------------------------------- ---------------------------- ------------------- Swap #7035 - -------------------------------------------------------------------------------- All dated are subject to the Modified Following - ------------------------------------------------------------ ------------------- Business Day Convention. - -------------------- ---------------- --------------------- -------------------- From To National Amortization - -------------------- ---------------- --------------------- -------------------- 1/10/2006 2/1/2006 3,500,000.00 - -------------------- ---------------- --------------------- -------------------- 2/1/2006 3/1/2006 3,480,555.56 19,444.44 - -------------------- ---------------- --------------------- -------------------- 3/1/2006 4/1/2006 3,461,111.12 19,444.44 - -------------------- ---------------- --------------------- -------------------- 4/1/2006 5/1/2006 3,441,666.68 19,444.44 - -------------------- ---------------- --------------------- -------------------- 5/1/2006 6/1/2006 3,422,222.24 19,444.44 - -------------------- ---------------- --------------------- -------------------- 6/1/2006 7/1/2006 3,402,777.80 19,444.44 - -------------------- ---------------- --------------------- -------------------- 7/1/2006 8/1/2006 3,383,333.36 19,444.44 - -------------------- ---------------- --------------------- -------------------- 8/1/2006 9/1/2006 3,363,888.92 19,444.44 - -------------------- ---------------- --------------------- -------------------- 9/1/2006 10/1/2006 3,344,444.48 19,444.44 - -------------------- ---------------- --------------------- -------------------- 10/1/2006 11/1/2006 3,325,000.04 19,444.44 - -------------------- ---------------- --------------------- -------------------- 11/1/2006 12/1/2006 3,305,555.60 19,444.44 - -------------------- ---------------- --------------------- -------------------- 12/1/2006 1/1/2007 3,286,111.16 19,444.44 - -------------------- ---------------- --------------------- -------------------- 1/1/2007 2/1/2007 3,266,666.72 19,444.44 - -------------------- ---------------- --------------------- -------------------- 2/1/2007 3/1/2007 3,247,222.28 19,444.44 - -------------------- ---------------- --------------------- -------------------- 3/1/2007 4/1/2007 3,227,777.84 19,444.44 - -------------------- ---------------- --------------------- -------------------- 4/1/2007 5/1/2007 3,208,333.40 19,444.44 - -------------------- ---------------- --------------------- -------------------- 5/1/2007 6/1/2007 3,188,888.96 19,444.44 - -------------------- ---------------- --------------------- -------------------- 6/1/2007 7/1/2007 3,169,444.52 19,444.44 - -------------------- ---------------- --------------------- -------------------- 7/1/2007 8/1/2007 3,150,000.08 19,444.44 - -------------------- ---------------- --------------------- -------------------- 8/1/2007 9/1/2007 3,130,555.64 19,444.44 - -------------------- ---------------- --------------------- -------------------- 9/1/2007 10/1/2007 3,111,111.20 19,444.44 - -------------------- ---------------- --------------------- -------------------- 10/1/2007 11/1/2007 3,091,666.76 19,444.44 - -------------------- ---------------- --------------------- -------------------- 11/1/2007 12/1/2007 3,072,222.32 19,444.44 - -------------------- ---------------- --------------------- -------------------- 12/1/2007 1/1/2008 3,052,777.88 19,444.44 - -------------------- ---------------- --------------------- -------------------- 1/1/2008 2/1/2008 3,033,333.44 19,444.44 - -------------------- ---------------- --------------------- -------------------- 2/1/2008 3/1/2008 3,013,889.00 19,444.44 - -------------------- ---------------- --------------------- -------------------- 3/1/2008 4/1/2008 2,994,444.56 19,444.44 - -------------------- ---------------- --------------------- -------------------- 4/1/2008 5/1/2008 2,975,000.12 19,444.44 - -------------------- ---------------- --------------------- -------------------- 5/1/2008 6/1/2008 2,955,555.68 19,444.44 - -------------------- ---------------- --------------------- -------------------- 6/1/2008 7/1/2008 2,936,111.24 19,444.44 - -------------------- ---------------- --------------------- -------------------- 7/1/2008 8/1/2008 2,916,666.80 19,444.44 - -------------------- ---------------- --------------------- -------------------- 8/1/2008 9/1/2008 2,897,222.36 19,444.44 - -------------------- ---------------- --------------------- -------------------- 9/1/2008 10/1/2008 2,877,777.92 19,444.44 - -------------------- ---------------- --------------------- -------------------- 10/1/2008 11/1/2008 2,858,333.48 19,444.44 - -------------------- ---------------- --------------------- -------------------- 11/1/2008 12/1/2008 2,838,889.04 19,444.44 - ---------------------------------------------------------- --------------------- 12/1/2008 1/2/2009 2,819,444.60 19,444.44 - -------------------- ---------------- --------------------- -------------------- Page 1
Blonder Tongue Laboratories (BDRL) 8-KEntry into a Material Definitive Agreement
Filed: 5 Jan 06, 12:00am