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that this provision will be superseded by any choice of law provision in the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
