0001307942-12-000014.txt : 20120423 0001307942-12-000014.hdr.sgml : 20120423 20120423111959 ACCESSION NUMBER: 0001307942-12-000014 CONFORMED SUBMISSION TYPE: DEF 14A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20100419 FILED AS OF DATE: 20120423 DATE AS OF CHANGE: 20120423 EFFECTIVENESS DATE: 20120423 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLONDER TONGUE LABORATORIES INC CENTRAL INDEX KEY: 0001000683 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 521611421 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: DEF 14A SEC ACT: 1934 Act SEC FILE NUMBER: 001-14120 FILM NUMBER: 12772337 BUSINESS ADDRESS: STREET 1: ONE JAKE BROWN RD STREET 2: PO BOX 1000 CITY: OLD BRIDGE STATE: NJ ZIP: 08857 BUSINESS PHONE: 9086794000 MAIL ADDRESS: STREET 1: ONE JAKE BROWN ROAD CITY: OLD BRIDGE STATE: NJ ZIP: 08857 DEF 14A 1 blonder14a041212.htm PROXY STATEMENT blonder14a041212.htm
SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
 
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. ___)
 
Filed by the Registrantx
Filed by a Party other than the Registrant o

Check the appropriate box:
   o Preliminary Proxy Statement                                                                                                oConfidential, for Use of the
   x Definitive Proxy Statement                                                                                                    Commission Only (as permitted
   o     Definitive Additional Materials                                                                                                  by Rule 14a-6(e)(2))
   o Soliciting Material Pursuant to Rule 14a-12

BLONDER TONGUE LABORATORIES, INC.
(Name of Registrant as Specified in Its Charter)

                                                                                                                            
 (Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)

Payment of Filing Fee (Check the appropriate box):
x
 No fee required.
o
Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11
                      .
 
 
1.
Title of each class of securities to which transaction applies:
 
 
 
 
2.
Aggregate number of securities to which transaction applies:
 
 

 
3.
Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
 
 
 
 
4.
Proposed maximum aggregate value of transaction:
 
 

 
5.
Total fee paid:
 
 
         
 o
Fee paid previously with preliminary materials: 
                                                                                                                               
 o
Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously.  Identify the previous filing by registration statement number, or the form or schedule and the date of its filing.
 
 
1.
Amount Previously Paid:
 
 

 
2.
Form, Schedule or Registration Statement No.:
 
 
     
 
3.
Filing Party:
 
 

 
4.
Date Filed:
 
 

           
 
 

 

BLONDER TONGUE LABORATORIES, INC.
One Jake Brown Road
Old Bridge, New Jersey 08857
 
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
To Be Held May 23, 2012
                             
 
To Our Stockholders:
 
The 2012 Annual Meeting of Stockholders of Blonder Tongue Laboratories, Inc. (“Blonder” or “we”) will be held at our executive offices located at One Jake Brown Road, Old Bridge, New Jersey, on May 23, 2012, beginning at 10:00 a.m., local time, for the following purposes:
 
 
1.
To elect as the Directors constituting Class II of the Board of Directors the two nominees named in the attached Proxy Statement to serve until the 2015 Annual Meeting of Stockholders and until qualified successor directors have been elected or until their resignation or removal;
 
 
2.
To ratify the appointment of Marcum LLP, certified public accountants, as our independent registered public accountants for the year ending December 31, 2012; and
 
 
3.
To transact any other business as may properly come before the meeting or any adjournments thereof.  In their discretion, the Proxies are authorized to vote upon any other business as may properly come before the Annual Meeting or any adjournments thereof.
 
Please read the attached Proxy Statement for further information regarding each proposal to be made.  A proxy, if properly executed and received in time for the voting, will be voted in the manner directed on the proxy.  If no direction is made, the proxy will be voted FOR all proposals on the proxy card.
 
Our Board of Directors has fixed the close of business on March 30, 2012 as the record date for determining stockholders entitled to notice of the meeting and to vote at the meeting or any adjournments thereof.  Only stockholders of record at the close of business on March 30, 2012 are entitled to notice of and to vote at the meeting or any adjournments thereof.
 
We cordially invite you to attend the meeting.  Regardless of whether you plan to attend, please complete, date and sign the enclosed proxy and return it promptly. If you receive more than one form of proxy, it is an indication that your shares are registered in more than one account, and therefore you should complete and return each proxy if you wish to vote all of your shares that are eligible to be voted at the meeting.
 
By Order of the Board of Directors
 
Robert J. Pallé, Jr., President, Chief Operating Officer and Secretary
April 23, 2012


 
 
 Important Notice Regarding the Availability of Proxy Materials for the Stockholder
Meeting to be Held on May 23, 2012
The proxy statement and annual report to stockholders are available at:
http://www.amstock.com/ProxyServices/ViewMaterial.asp?CoNumber=07796
 
 
PLEASE COMPLETE AND RETURN THE PROXY IN THE ENCLOSED ENVELOPE, WHICH REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES.  IF YOU ATTEND THE MEETING AND DESIRE TO VOTE IN PERSON AT THE MEETING, YOUR PROXY WILL BE RETURNED TO YOU UPON WRITTEN NOTICE TO THE SECRETARY OF THE COMPANY REVOKING YOUR PROXY.
 

 
 

 

BLONDER TONGUE LABORATORIES, INC.
One Jake Brown Road
Old Bridge, New Jersey 08857
 
PROXY STATEMENT FOR
THE ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD ON
MAY 23, 2012
 
This Proxy Statement is being furnished to the stockholders of Blonder Tongue Laboratories, Inc., a Delaware corporation (“Blonder” or “we”), in connection with the solicitation of proxies by our Board of Directors for our 2012 Annual Meeting of Stockholders (the “Annual Meeting”) and at any adjournment or adjournments thereof.
 
You are invited to attend the Annual Meeting on May 23, 2012, at 10:00 a.m., local time.  The meeting will be held at our executive offices located at One Jake Brown Road, Old Bridge, New Jersey.
 
The mailing address of our principal executive office is One Jake Brown Road, Old Bridge, New Jersey 08857.  Our telephone number is (732) 679-4000.  This Proxy Statement and the enclosed form of proxy will be mailed to each stockholder on or about April 23, 2012, together with the Annual Report on Form 10-K for the year ended December 31, 2011.
 
Voting and Proxies
 
 
You can vote by completing, signing, dating and mailing the enclosed proxy card in the envelope provided. When a proxy is returned properly, the shares represented by the proxy will be voted in accordance with your instructions.
 
You may also attend the Annual Meeting in person and cast your vote there.  If your shares are held in the name of your broker, bank or other nominee and you wish to vote at the Annual Meeting, you must bring a legal proxy from the record holder of your shares indicating that you were the beneficial owner of the shares on March 30, 2012, the record date for voting, and that you have a right to vote your shares.
 
Regarding the election of Class II Directors to serve until the 2015 Annual Meeting of Stockholders, stockholders may vote in favor of all nominees or withhold their votes as to all nominees or withhold their votes as to specific nominees.  With respect to any other proposals to be voted upon, stockholders may vote in favor of a proposal, against a proposal or may abstain from voting.  You should specify your choices on the enclosed form of proxy.  If no specific instructions are given with respect to the matters to be acted upon, the shares represented by a signed proxy card will be voted (i) FOR the election of all nominees; and (ii) FOR ratification of the appointment of Marcum LLP as independent registered public accountants for the fiscal year ending December 31, 2012. Directors will be elected by a plurality of the votes cast by the holders of the shares of our common stock, $.001 par value per share (“Common Stock”), voting in person or by proxy at the Annual Meeting.  Votes withheld from one or more directors will have the same effect as abstentions and will have no effect on the vote for election of Directors.  Approval of any other matters to come before the Annual Meeting will require the affirmative vote of the holders of a majority of the shares of our Common Stock present in person or by proxy at the Annual Meeting.  Abstentions are deemed present for quorum purposes and entitled to vote and, therefore, will have the effect of a vote against any matter other than the election of Directors.  Broker non-votes occur when a broker or other nominee holding shares for a beneficial owner does not vote on a proposal because the beneficial owner has not provided voting instructions and the broker does not have discretionary authority to vote shares on the matter.  Broker non-votes are not considered to be shares “entitled to vote” (other than for quorum purposes), will not be included in vote totals and will have no effect on the outcome of any matters to be voted upon at the Annual Meeting.
 
 
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Revocation of a Proxy
 
All proxies delivered pursuant to this solicitation are revocable at any time before they are exercised, by (i) filing written notice with our Secretary before the Annual Meeting, (ii) signing and delivering a later dated proxy to our Secretary before the Annual Meeting (each to the mailing address of our executive offices), or (iii) voting in person at the Annual Meeting if you are a record holder.  Your attendance at the Annual Meeting will not, without taking one of actions described in the immediately preceding sentence, constitute revocation of a proxy.  If your shares are held in the name of a broker, bank or other nominee, you need to contact the record holder of your shares regarding how to revoke your proxy.
 
Voting on Other Matters
 
We know of no other business to be transacted at the Annual Meeting other than the election of Class II Directors and the other proposal described in the attached Notice of Annual Meeting of Stockholders.  If any other matters do arise and are properly presented, the persons named in the proxy will have the discretion to vote on those matters for you according to their best judgment and with the instructions of the Board of Directors.
 
Costs of Proxy Solicitation
 
We will pay the expenses associated with this solicitation of proxies for the Annual Meeting, including the cost of preparing, assembling and mailing the notice, proxy and Proxy Statement.  We will solicit proxies by use of the mails, through brokers and banking institutions, and by our officers and regular employees.  We may also solicit proxies by personal interview, mail, telephone or facsimile transmission.
 
Voting Securities

Only owners of record of our Common Stock at the close of business on March 30, 2012 (the “Record Date”) are entitled to notice of and to vote at the Annual Meeting or any adjournments or postponements thereof.  Each owner of record on the Record Date is entitled to one vote for each share of our Common Stock so held.  There is no cumulative voting.  On the Record Date, there were 6,215,556 shares of Common Stock issued, outstanding and entitled to vote.

PROPOSAL NO. 1 - ELECTION OF DIRECTORS

Our Certificate of Incorporation, as amended, provides that our Board shall consist of between five and eleven members, as determined from time to time by the Board, divided into three classes as nearly equal in number as possible.  The size of the Board has currently been set at seven directors.  Class I is comprised of three directors and Classes II and III are each comprised of two directors.  The term of the current Class II Directors expires at the 2012 Annual Meeting, the term of the current Class III Directors expires at the 2013 Annual Meeting and the term of the current Class I Directors expires at the 2014 Annual Meeting.  The successors to each class of Directors whose terms expire at an Annual Meeting will be elected to hold office for a term expiring at the Annual Meeting of Stockholders held in the third year following the year of their election.
 
The Directors whose terms will expire at the 2012 Annual Meeting of Stockholders are Robert J. Pallé, Jr. and Gary P. Scharmett, each of whom has been recommended for nomination by our Nominating Committee and nominated by our Board to stand for re-election as a Director at the 2012 Annual Meeting of Stockholders, to hold office until the 2015 Annual Meeting of Stockholders and until a qualified successor Director has been elected or until he resigns or is removed.  Messrs. Pallé and Scharmett have each consented to serve for the new terms, if elected.
 
Recommendation of the Board of Directors Concerning the Election of Directors
 
Our Board of Directors recommends a vote FOR Robert J. Pallé, Jr. and Gary P. Scharmett as Class II Directors to hold office until the 2015 Annual Meeting of Stockholders and until qualified successor Directors have been elected or until their resignation or removal.  Proxies received by the Board of Directors will be so voted unless stockholders specify in their proxy a contrary choice.
 
 
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DIRECTORS AND EXECUTIVE OFFICERS
 
Nominee and Continuing Directors
 

The following table sets forth the names and certain information about each of the nominees for election as Director and our continuing Directors:
 
Name
 
Age
Director
   Since  
Nominees for a three-year term expiring in 2015 (Class II Directors):
   
Robert J. Pallé, Jr.
Gary P. Scharmett(1) 
66
56
1993
1997
Directors not standing for election this year whose terms expire in 2013 (Class III Directors):
   
James F. Williams
54
1993
Charles E. Dietz(2) 
64
2011
Directors not standing for election this year whose terms expire in 2014 (Class I Directors):
   
Anthony J. Bruno(3)(4).
Steven L. Shea(5)(6)
James A. Luksch .
71
53
81
2008
2009
1988
 
(1)
Since February, 2004, a member of the Nominating Committee of the Board of Directors.
(2)
Since January, 2012, a member of the Audit and Compensation Committees of the Board of Directors.
(3)
Since February, 2008, a member of the Audit Committee of the Board of Directors.
(4)
Since May, 2008, a member of the Nominating and Compensation Committees of the Board of Directors.
(5)
Since September, 2009, a member of the Audit and Compensation Committees of the Board of Directors.
(6)
Since February, 2010, a member of the Nominating Committee of the Board of Directors.
     
Set forth below is a brief summary of the recent business experience and background of each nominee for election as a Director, continuing Director and executive officer.  The Board of Directors believes that each nominee, and each continuing Director, possesses the qualities and experience that Directors should possess as such criteria for Board membership is described below in the section entitled “Meetings of the Board of Directors; Committees – Nominating Committee.”  Also included below is information about each Director’s specific experience, qualifications, attributes or skills that led the Board to conclude that he should serve as a Director of Blonder at the time of filing this Proxy Statement.  As reflected, the Nominating Committee seeks out, and the Board is comprised of, individuals with diverse professional backgrounds, experiences and skills.
 
Anthony J. Bruno has been one of our Directors since February 1, 2008.  Since 2007, Mr. Bruno has been a financial consultant providing corporate acquisition advisory services to various companies located in the United States.  Prior to 2007, Mr. Bruno was the Vice-President of Finance for 18 years for Besam Entrance Solutions, the United States subsidiary of ASSA ABLOY Entrance Systems, a Swedish Company, managing all aspects of its financial activities in North America. Mr. Bruno also previously served as Blonder’s Vice President of Finance from 1981 to 1989.
 
The Board concluded that Mr. Bruno should serve as a Director due to his significant executive management experience with a large, multi-national corporation and his expertise in finance and auditing matters, including financial reporting and corporate acquisitions.
 
Charles E. Dietz has been one of our Directors since September 2011.  Since 2008, Mr. Dietz has been an independent cable industry consultant to various clients within the cable industry.  Prior to 2008, Mr. Dietz was Senior Vice President of Engineering for 12 years at Insight Communications, a multiple systems operator, and from 2001 to 2008 served as Insight Communications’ Chief Technical Officer.  Mr. Dietz was responsible for all technical aspects of Insight Communications’ operations, including technology development and implementation, system construction and maintenance, purchasing, and technical regulatory compliance.  Mr. Dietz has been a member of the Society of Cable Telecommunications Engineers since 1978, and a member of Cable TV Pioneers since 2010.
 
 
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The Board concluded that Mr. Dietz should serve as a Director due to his extensive industry knowledge and executive and technical experience in the cable television and communications industry, including the analysis, evaluation, purchase, use and deployment of products, equipment and technology substantially similar to Blonder’s.  Accordingly, Mr. Dietz brings valuable insight to our customer and vendor relationships and strong relationships with the cable industry to the Board.
 
James A. Luksch has been one of our Directors and our Chief Executive Officer since November, 1988.  He has been the Chairman of our Board since November, 1994.  Mr. Luksch also served as our President from November, 1988 until May, 2003.  In November, 2008 Mr. Luksch and his spouse filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code.  See “Certain Relationships and Related Transactions” below for additional details regarding this bankruptcy. Mr. Luksch is the father of Emily Nikoo, our Executive Vice President, and the father-in-law of Nezam Nikoo, one of our Vice Presidents.
 
The Board concluded that Mr. Luksch should serve as a Director due to his forty-plus years of leadership and experience in the cable television and technology industry and his in-depth knowledge and understanding of our business, operations and strategies, as well as bringing an important historical perspective of our company to the Board’s deliberations.
 
Robert J. Pallé, Jr. has been one of our Directors since September, 1993, our President since May, 2003 and our Chief Operating Officer and Secretary since April, 1989.  He also served as our Executive Vice President from April, 1989 until May, 2003 and as our Interim Treasurer from March through April, 2001.
 
The Board concluded that Mr. Pallé should serve as a Director due to his extensive business and management experience with us in various senior management positions and his in-depth knowledge of our products, lines of business, long-term strategies, challenges and opportunities.  Mr. Pallé  brings a broad perspective to the Board’s deliberations due to his position as one of our top leaders.
 
Gary P. Scharmett has been one of our Directors since December, 1997.  Since January, 1989, Mr. Scharmett has been a partner in the law firm of Stradley, Ronon, Stevens & Young, LLP, our outside counsel, and served on the Board of Directors of that firm from January, 2001 until December, 2003.  He presently serves as the Co-Chair of that firm’s Finance & Restructuring Practice Group.  Mr. Scharmett is also currently a Vice President and a member of the Board of Directors of The Association of Commercial Finance Attorneys, Inc., and a Director of the Philadelphia Chapter of the Turnaround Management Association.
 
The Board concluded that Mr. Scharmett should serve as a Director due to the important experience, judgment and perspective he brings to the Board based upon his thirty-plus years of experience as a corporate attorney representing a diverse range of companies on complex matters, including financing, regulatory and corporate governance matters.  In addition, having served as our principal legal advisor since 1989, Mr. Scharmett has a unique understanding of our business and the industry in which we operate and compete.
 
Steven L. Shea has been one of our Directors since September, 2009.  Mr. Shea has more than twenty-five years of investment banking experience.  Since January, 2011, he has served as President of Hardesty Capital Management, LLC (an SEC registered investment advisor) and Hardesty Capital Corporation, which provide investment advisory services to corporations, institutions and individuals.  Prior thereto, Mr. Shea was an Executive Vice President of Ferris, Baker Watts, Inc. (“Ferris Baker”), from 1999 until the sale of such firm in 2008. Mr. Shea also served as the Executive Director of the Capital Markets Division of Ferris Baker and was a member of their Board of Directors and Executive and Strategic Alternative Committees of the Board of Directors. Prior to his position at Ferris Baker, Mr. Shea was a Vice President with Mercantile Safe Deposit and Trust Company from 1989 to 1993, and was a Vice President at Maryland National Bank from 1981 to 1989.
 
The Board concluded that Mr. Shea should serve as a Director due to his extensive financial, merchant banking, capital markets and executive management experience gained as an investment banker, including his knowledge of growth strategies, acquisition analysis and shareholder relations.  He also has an in-depth familiarity with the technology and manufacturing sectors, along with experience as a Director of other corporations.
 
James F. Williams has been one of our Directors since September, 1993.  He has served as the Vice-President and a Director of Ontario Specialty Contracting, Inc., a demolition and environmental contracting company, since June, 1999.  Since July, 2007, Mr. Williams has served as a director, managing member and vice president of Buffalo City Center Leasing, LLC, which, until February 2011 was a lessor of electronic route tracking equipment to the trucking industry.  See “Certain Relationships and Related Transactions” below for additional details regarding Buffalo City.
 
 
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The Board concluded that Mr. Williams should serve as a Director due to his strong experience in strategic planning, leadership, finance and executive management with various organizations.  As a Director for over eighteen years, Mr. Williams also provides perspective, institutional knowledge and a deep understanding of our business.
 
Other Executive Officers
 
Eric S. Skolnik, 47, has been a Senior Vice President since May, 2003 and our Chief Financial Officer, Treasurer and Assistant Secretary since May, 2001.  Mr. Skolnik served as our Interim Chief Financial Officer from January, 2001 through April, 2001.  He was our Corporate Controller from May, 2000 through January, 2001.  From 1994 until May, 2000, Mr. Skolnik worked as a certified public accountant with BDO Seidman, LLP.
 
Emily M. Nikoo, 46, has been our Executive Vice President since May, 2011 and was Senior Vice President – Operations from February, 2007 to May, 2011.  Ms. Nikoo served as Vice President - Marketing and Technical Services from February, 2004 to February, 2007.  She was hired by us in March, 1995 as a product manager and has held several supervisory and management positions.  From 1994 until 1995, Ms. Nikoo was the Vice President of Electronic Systems Advanced Technology, and from 1987 to 1994 she worked as an electrical engineering and project manager for Lockheed Martin Corporation in its space systems business segment.  Ms. Nikoo is the spouse of Nezam Nikoo, one of our Vice Presidents, and the daughter of James A. Luksch, our Chief Executive Officer and one of our Directors.
 
Norman A. Westcott, 71, has been our Senior Vice President - Operational Services since October, 1999 and was one of our Vice Presidents from July, 1994 until October, 1999.  Mr. Westcott is responsible for material purchasing and production.
 
Allen Horvath, 60, has been our Vice President - Manufacturing since May, 2003 and is responsible for our manufacturing activities.  Mr. Horvath served as our Manufacturing Manager from 1998 until May, 2003.  Since 1976, Mr. Horvath has served us in various management positions in the areas of production testing, engineering, quality control and manufacturing.
 
Kant Mistry, 71, has been our Vice President - Engineering since May, 2003, and has been our Chief Technical Officer since July, 2000.  From October, 1990 to July, 2000, Mr. Mistry served as our Chief Engineer.
 
Nezam Nikoo, 48, has been our Vice President – Advanced Digital Technologies since February, 2009.  Mr. Nikoo served as our Chief Digital Engineer from July, 2000 until February, 2009 and as our Senior Design Engineer from 1995 until 2008.  From 1988 to 1995, Mr. Nikoo held several positions at Lockheed Martin Corporation, including his final position as Lead Electrical Design Engineer integrating space shuttle payload experiments.  Mr. Nikoo is the spouse of Emily Nikoo, our Executive Vice President, and the son-in-law of James A. Luksch, our Chief Executive Officer and one of our Directors.
 
Jeff Smith, 48, has been our Vice President - Sales since May, 2011. Mr. Smith served as our Vice President - North American Sales from October 2007 through May 2011, as our National Director of Sales from December 2006 through October 2007, and as our Director of South Central Regional Sales from January 2006 through December 2006.  From February 2002 through May 2005, Mr. Smith worked as Director of Commercial Installations at Dish Network®.
 
Board Leadership Structure and Risk Oversight
 
The Board believes that our Chief Executive Officer, Mr. Luksch, is best situated to serve as Chairman of the Board at this time because he is the Director most familiar with our business and industry, and most capable of effectively identifying strategic priorities and leading the discussion and execution of strategy. Independent Directors and management have different perspectives and roles in strategy development. Our independent Directors bring experience, oversight and expertise from outside the company and industry, while the Chief Executive Officer brings company-specific experience and expertise. The Board currently believes that having Mr. Luksch serve the combined role of Chairman and Chief Executive Officer promotes strategy development and its execution, and facilitates information flow between management and the Board, which are essential to effective governance.  We do not currently have a lead independent director.  The Board believes that the appointment of a lead independent director is not presently necessary due to Blonder’s size and the active role of the independent Directors in Board and Committee matters.  Moreover, in addition to the oversight and feedback provided by the independent Directors during the course of our Board of Directors meetings, our independent Directors have regular executive sessions, following which the presiding Director acts as a liaison between the independent Directors and the Chairman of the Board regarding any specific feedback or issues.  The Nominating Committee will evaluate alternative governance policies and procedures, such as having a lead independent director, from time to time as deemed necessary.
 
 
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The Board believes that establishing the right “tone at the top” and that full and open communication between management and the Board of Directors are essential for effective risk management and oversight. At each regular Board meeting, the Board receives reports from members of senior management on areas of material risk to Blonder, including operational, financial, strategic and performance risks. The full Board receives these reports from the appropriate "risk owner" within the organization to facilitate our risk identification, risk management and risk mitigation strategies.  This enables the Board to coordinate risk oversight, particularly with respect to risk interrelationships across corporate disciplines.
 
The Board has an active role, as a whole and also at the committee level, in overseeing management of our risks.  The Audit Committee assists the Board in fulfilling its oversight responsibilities with respect to areas of financial reporting and compliance with laws, rules and regulations applicable to us, including those related to accounting regulation, insider trading, antitrust, and employment discrimination, whistle blowing and conflicts of interest faced by employees, officers and directors.  The Compensation Committee assists the Board in fulfilling its oversight responsibilities with respect to our compensation policies and programs.  The Nominating Committee assists the Board in fulfilling its oversight responsibilities with respect to the management of risks associated with Board organization and membership, and succession planning for our Directors and senior executive officers.
 
Director Independence
 
The Board of Directors has considered the independence of our Directors pursuant to Section 803A of the Rules of NYSE Amex.  Based on this consideration, our Board has determined that Anthony J. Bruno, Charles E. Dietz, Steven L. Shea and Gary P. Scharmett, all current Directors, are independent pursuant to Section 803A.  Previously, the Board also determined that Robert B. Mayer, who served as a Class III Director until his death on April 1, 2011, was independent.  As permitted by the Section 801(h) of the Rules of the NYSE Amex related to smaller reporting companies, from April 1, 2011 until September 14, 2011, when the Class III vacancy was filled by the appointment of Mr. Dietz, the Board was comprised of at least 50% independent Directors.  Since September 14, 2011, the Board has consisted of a majority of independent Directors.
 
In determining that Mr. Shea meets the independence requirements of NYSE Amex Section 803A, the Board considered Mr. Shea’s role during 2008 and 2009 as an expert witness with respect to the value of our Common Stock, in our Chief Executive Officer’s personal bankruptcy case, noting that Mr. Shea received compensation of approximately $15,000, which amount was paid by our Chief Executive Officer.  The Board also considered Mr. Shea’s prior service to Blonder, which was more than ten years ago, in the area of investment banking and corporate transactional services while in his position at Ferris Baker.
 
Meetings of the Board of Directors; Committees
 
The Board of Directors has three standing committees: the Compensation Committee, the Nominating Committee and the Audit Committee.  During the year ended December 31, 2011, the Board of Directors held nine meetings, the Compensation Committee held five meetings, the Nominating Committee held six meetings, and the Audit Committee held five meetings.  Each member of the Board of Directors attended (either in person or via teleconference) at least 75% of the aggregate of the total number of Board meetings and Committee meetings held during the period he served as a director and/or committee member.
 
 
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Compensation Committee.  The Compensation Committee is currently comprised of Steven L. Shea, Charles E. Dietz,  and Anthony J. Bruno, each of whom is a non-employee Director.  Robert B. Mayer, a non-employee Director at the time, was a member of the Compensation Committee and served as its Chairman until his death on April 1, 2011.  On April 7, 2011, Mr. Shea was appointed as Chairman of the Compensation Committee to fill the vacancy in this position created by the death of Mr. Mayer.  On January 31, 2012, Mr. Dietz was appointed as a member of the Compensation Committee.  Each of the members of the Compensation Committee who served during the 2011 fiscal year was independent, as independence for compensation committee members is defined by NYSE Amex.
 
The Compensation Committee currently does not have a formal charter. The Compensation Committee determines compensation for our executive officers and administers our stock incentive plans, other than the Amended and Restated 1996 Director Option Plan, as amended, and the 2005 Director Equity Incentive Plan, as amended, both of which are administered by the Board.
 
The Compensation Committee’s responsibilities include, among other duties, the responsibility to:

·  
evaluate the performance of the Chief Executive Officer and the President;
·  
review and approve the base salary (subject to Board approval), bonus, incentive compensation and any other compensation for the Chief Executive Officer and the President;
·  
review the Chief Executive Officer’s recommendations for the compensation of the other executive officers, make appropriate adjustments and approve;
·  
monitor our cash bonus and equity-based compensation plans and discharge the duties imposed on the Compensation Committee by the terms of those plans; and
·  
perform other functions or duties deemed appropriate by the Board.

Compensation decisions for the Chief Executive Officer, President and all other executive officers are reviewed and approved by the Compensation Committee, subject to ratification by the Board of Directors of the base salary for the Chief Executive Officer and the President.  The Compensation Committee relies upon the Chief Executive Officer to assist the Compensation Committee in performing its duties with regard to all other executive officers.  The Compensation Committee does not delegate any of its authority to other persons.  While the Compensation Committee has not retained a compensation consultant, in determining the base salary for our executive officers, the Compensation Committee obtains, from time to time, salary survey information from companies such as Watson Wyatt Data Services.  In addition, during 2009, at the request of the Compensation Committee, one of our non-executive employees prepared an Officer Salary Survey, which included competitive salary data from a wide range of companies.
 
With regard to the compensation of the Chief Executive Officer and the President, Messrs. Luksch and Pallé, respectively, the Compensation Committee reviews their individual performance, the relevant compensation information from salary surveys, summary information and comments from peer review questionnaires and written comments received from members of the Board regarding their performance.  The Chief Executive Officer also provides the Compensation Committee with a summary review of the President’s performance.  Based upon its review of all of the foregoing information, the Compensation Committee determines the form and amount of compensation for each of Messrs. Luksch and Pallé, subject to Board approval of their base salaries.  The base salary of the Chief Executive Officer and the President is presently reviewed every year.
 
With regard to compensation for the other executive officers, the Compensation Committee reviews summary information and comments from peer review questionnaires and the Chief Executive Officer’s written summary review of the executive officers’ performance.  The Chief Executive Officer also provides a recommendation as to the appropriate form and amount of compensation for each executive officer.  The Compensation Committee reviews and considers the recommendation of the Chief Executive Officer, makes adjustments as appropriate and approves them.  This review and adjustment procedure is performed annually for the other executive officers.
 
 
7
 
 

 
 
The Compensation Committee does not establish or recommend the amount or form of Director compensation.  These determinations are made and approved by the full Board of Directors.  Grants of stock option awards to non-employee Directors are generally made annually upon consideration and approval by the full Board of Directors with the non-employee Directors abstaining from such vote.
 
Nominating Committee.  The Nominating Committee is currently comprised of Gary P. Scharmett, Anthony J. Bruno and Steven L. Shea, each of whom is a non-employee Director.  Mr. Scharmett is the Chairman of the Nominating Committee.  Each of the members of the Nominating Committee who served during the 2011 fiscal year was independent, as independence for nominating committee members is defined by NYSE Amex.
 
The Nominating Committee, among other things, considers and makes recommendations to the Board of Directors concerning the appropriate size of the Board and nominees to stand for election or fill vacancies on the Board, as well as the composition of our standing committees.  In particular, the Nominating Committee identifies, recruits, considers and recommends candidates to fill positions on the Board in accordance with its criteria for Board membership (as such criteria are generally described below).  In searching for qualified director candidates to nominate for election at an annual meeting of stockholders, the Nominating Committee will initially consider nominating the current Directors whose terms are expiring and will consider their past performance on the Board, along with the criteria for Board membership, in determining whether to nominate them for re-election.  In connection with nominations for elections at annual meetings or to fill vacancies in the Board, the Nominating Committee may solicit the current members of the Board to identify qualified candidates through their business and other organizational networks and may also retain director search firms as it determines necessary in its own discretion.  The Nominating Committee will then consider the potential pool of Director candidates derived from the foregoing process, select the top candidates to fill the number of openings based on their qualifications, the Board’s needs (including the need for independent directors) and the criteria for Board membership.  The Nominating Committee will then conduct a thorough investigation of the proposed candidates’ backgrounds to ensure there is no past history that would disqualify such candidates from serving as Directors.  Those candidates that are selected and pass the background investigation will be recommended to the full Board for nomination.
 

The criteria for a nominee to the Board include, among other things:
 
·  
The highest personal and professional ethics, strength of character, integrity and values;
 
·  
Experience as a senior manager, chief operating officer or chief executive officer of a relatively complex organization or, if in a professional or scientific capacity, be accustomed to dealing with complex problems, or otherwise shall have obtained and excelled in a position of leadership;
 
·  
Education, experience, intelligence, independence, fairness, reasoning ability, practical wisdom, and vision to exercise sound, mature judgments on a macro and entrepreneurial basis on matters which relate to our current and long-term objectives;
 
·  
Competence and willingness to learn our business, and the breadth of viewpoint and experience necessary for an understanding of the diverse and sometimes conflicting interests of stockholders and other constituencies;
 
·  
The nominee should be of such an age at the time of election to assure a minimum of three years of service as a director, and should be free and willing to attend regularly scheduled meetings of our Board of Directors and its committees over a sustained period and otherwise be able to contribute a reasonable amount of time to our company affairs;
 
·  
The stature and capability to represent us before the public, stockholders, and other various individuals and groups that affect us; and
 
 
8
 
 

 
·  
Willingness to appraise objectively the performance of management in the interest of the stockholders and question management’s assumptions when inquiry is appropriate.
 
The Nominating Committee does not have a formal policy with respect to diversity.  However,  in order to enhance the overall quality of the Board’s deliberations and decisions, the Nominating Committee seeks candidates with diverse professional backgrounds and experiences, representing a mix of industries and professions with varied skill sets and expertise.
 
The Nominating Committee does not have a formal charter, but our Board has adopted guidelines addressing the purpose and responsibilities of the Nominating Committee in connection with its formation.  The guidelines include procedures for recruiting, considering and recommending nominees to our Board and criteria for Board membership.  Although the Nominating Committee will not consider any director candidates recommended by stockholders, our Board believes this is appropriate as our certificate of incorporation and bylaws permit stockholders to directly nominate persons for election as Directors by following the procedures set forth therein.
 
Audit Committee.  We have a separately-designated standing Audit Committee established in accordance with Section 3(a)(58)(A) under the Securities Exchange Act of 1934, as amended.  The Audit Committee is currently comprised of Anthony J. Bruno, Charles E. Dietz  and Steven L. Shea, each of whom is a non-employee Director.  Robert B. Mayer, a non-employee Director at the time, served on the Audit Committee until his death on April 1, 2011. Mr. Dietz was appointed to the Audit Committee on January 31, 2012 to fill the vacancy created by the death of Mr. Mayer.  Mr. Bruno is the Chairman of the Audit Committee.  As permitted by Section 801(h) of the Rules of the NYSE Amex related to smaller reporting companies, from April 1, 2011 until January 31, 2012, the Audit Committee consisted of only two members.  As of January 31, 2012, the Audit Committee has been comprised of three members.  The Audit Committee, among other things:
 
·  
oversees our accounting and financial reporting process and audits of our financial statements;
 
·  
selects, retains or terminates our independent registered public accountants;
 
·  
reviews the plans and results of the audit engagement with the independent registered public accountants;
 
·  
discusses with the independent registered public accountants all necessary accounting policies and practices to be used and alternative treatments of financial information discussed with management;
 
·  
oversees the work of the independent registered public accountants;
 
·  
evaluates and pre-approves audit and non-audit services provided by the independent registered public accountants;
 
·  
reviews the independence of the independent registered public accountants;
 
·  
assures the regular rotation of the audit partners;
 
·  
considers the range of audit and non-audit fees and determines the compensation of the independent registered public accountants;
 
·  
reviews financial and earnings information released to the public, analysts and other third parties; and
 
·  
reviews the adequacy of our internal accounting controls.
 
Each of the members of the Audit Committee who served during the 2011 fiscal year was independent, as “independence” for Audit Committee members is defined by NYSE Amex.  Our Board of Directors has determined that a member of the Audit Committee, Anthony J. Bruno, qualifies as an “audit committee financial expert” as defined in Section 407(d)(5)(ii) of Regulation S-K promulgated by the Securities and Exchange Commission (the “Commission”).  As noted above, Mr. Bruno is considered independent under the Rules of NYSE Amex.  The Board of Directors adopted a written charter for the Audit Committee in June, 2000, which was amended by the Board of Directors in March, 2003, March, 2004 and November 2009.  The Audit Committee reviews and reassesses the charter for adequacy on an annual basis, most recently in March, 2012.  A copy of the Audit Committee Charter was attached as Appendix A to our proxy statement for the 2010 Annual Meeting of Stockholders.
 
9
 
 

 
 
 
 
Board Policies Regarding Communications With the Board of Directors and Attendance at Annual Meetings
 
Our Board of Directors maintains a process for stockholders to communicate with the Board of Directors.  A stockholder wishing to communicate with our Board of Directors, or any individual member(s) of the Board of Directors, can send a written communication to the attention of the Board of Directors (or specific individual Director(s), if applicable) at the following address:  c/o Corporate Secretary, One Jake Brown Road, Old Bridge, New Jersey 08857.  Any such communication must state the number of shares beneficially owned by the stockholder making the communication.  Our Corporate Secretary will forward such communication to the full Board of Directors or to any individual Director or Directors to whom the communication is directed unless the communication is unduly hostile, threatening, illegal or similarly inappropriate, in which case our Corporate Secretary has the authority to discard the communication or take appropriate legal action regarding the communication.
 
While we do not have a formal written policy regarding Board member attendance at our Annual Meeting, we actively encourage our Directors to attend the Annual Meeting of Stockholders.  All Directors attended our 2011 Annual Meeting of Stockholders.
 

AUDIT COMMITTEE REPORT

The Audit Committee of the Board of Directors has:

·  
reviewed and discussed the audited financial statements for the fiscal year ended December 31, 2011 with management;
 
·  
discussed with Blonder’s independent registered public accountants the matters required to be discussed by Statement of Auditing Standards (“SAS”) No. 61, as amended (AICPA, Professional Standards, Vol. 1. AU section 380), as adopted by the Public Company Accounting Oversight Board in Rule 3200T;
 
·  
received the written disclosures and the letter from Blonder’s independent registered public accountants required by applicable requirements of the Public Company Accounting Oversight Board regarding the independent registered public accountant’s communications with the audit committee concerning independence; and
 
·  
discussed with Blonder’s independent registered public accountants their independence from Blonder and its management.
 
Management is responsible for the preparation, presentation and integrity of Blonder’s financial statements, the financial reporting process, accounting principles and internal controls and procedures designed to assure compliance with accounting standards and applicable laws and regulations.  Blonder’s independent registered public accountants are responsible for performing an independent audit of the financial statements in accordance with Standards of the Public Company Accounting Oversight Board (United States) and issuing a report thereon.  The Audit Committee’s responsibility is to monitor and oversee these processes.  The Audit Committee has relied, without independent verification, on the information provided to it and on the representations of management and the independent registered public accountants that the financial statements have been prepared in conformity with United States generally accepted accounting principles.
 
Based on the review and discussions referred to in the items above, the Audit Committee recommended to the Board of Directors that the audited financial statements for the fiscal year ended December 31, 2011 be included in Blonder’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011.
 
The Audit Committee
Anthony J. Bruno, Chairman
Charles E. Dietz
Steven L. Shea
10
 
 

 


Directors’ Compensation
2011 DIRECTOR COMPENSATION

The following table discloses the actual compensation paid to or earned by each of our Directors who is not also a named executive officer in fiscal year 2011:

Name
Fees Earned or Paid in Cash ($)
Option
Awards ($)(1)
All Other Compensation($)
Total ($)
Robert B. Mayer(6)
6,750
-
(2)
9,350
16,100
James F. Williams
23,500
13,280
(2)(3)
-
36,780
Anthony J. Bruno
29,400
13,280
(2)(4)
-
42,680
Gary P. Scharmett
25,800
13,280
(2)(3)
-
39,080
Steven L. Shea
28,400
13,280
(2)(5)
-
41,680
Charles E. Dietz(7)
6,925
-
 
-
6,925
 
_______________
(1)
The amounts in the “Option Awards” column reflect the aggregate grant date fair value computed in accordance with FASB ASC Topic 718.  Assumptions used in the calculation of these amounts are included in Note 1(o) to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2011.
(2)
Each non-employee Director as of March 23, 2011 was granted an option to purchase 10,000 shares of Common Stock on such date under the 2005 Director Equity Incentive Plan, as amended.  Because Mr. Mayer died following the grant date, but prior to vesting of these options, they were automatically cancelled as of the date of death.
(3)
As of December 31, 2011, Messrs. Williams and Scharmett each held options to purchase 85,000 shares of Common Stock.
(4)
As of December 31, 2011, Mr. Bruno held options to purchase 44,167 shares of Common Stock.
(5)
As of December 31, 2011, Mr. Shea held options to purchase 22,500 shares of Common Stock.
(6)
Mr. Mayer’s service as a Director terminated on April 1, 2011 due to his death.  In May, 2011 Blonder authorized a voluntary payment of $9,350 to the estate of Mr. Mayer, which was paid during 2011.  As of December 31, 2011, Mr. Mayer’s executors and/or heirs held options to purchase 60,000 shares of Common Stock.
(7)
Mr. Dietz service as a Director commenced on September 14, 2011.

Director Compensation Arrangements.

We pay each of our non-employee Directors an annual retainer, payable quarterly.  Since 1998 the amount of retainer has been $15,000 per year.  Effective as of January 1, 2012, the retainer has been increased to $25,000 per year.  We also pay each non-employee Director a fee of $1,000 for each Board meeting attended in person ($500 if attendance was telephonic) and a fee of $600 for each committee meeting attended in person ($300 if attendance was telephonic or if attending on the same date as a Board meeting).  We reimburse each Director for certain travel, lodging and related expenses incurred in connection with attendance at Board and committee meetings.  From time to time, in the sole discretion of the Board, we grant equity awards to our non-employee Directors.  During calendar year 2011, we did not pay Messrs. Luksch or Pallé any separate compensation for serving on the Board of Directors or any committees thereof.
 
 
11
 
 

 
 
Director Benefit Plans.
 
In May 2005, our stockholders approved the adoption of the Blonder Tongue Laboratories, Inc. 2005 Director Equity Incentive Plan (the “Director Plan”).  In May 2010, our stockholders approved an amendment of the Director Plan to increase the total number of shares subject to issuance under the plan from 200,000 shares to 400,000 shares.
 
The Director Plan is administered by our Board of Directors.  Under the Director Plan, Directors who are not currently employed by us or by any of our subsidiaries and who have not been so employed within the past six months, are eligible to receive equity-based awards from time to time as determined by our Board.  A maximum of 400,000 shares may be awarded under the Director Plan, and any shares subject to an award which is terminated, canceled, expired or forfeited for any reason will again be available for the grant of an award.  Under the Director Plan, eligible Directors may be awarded stock options to purchase a number of shares of Common Stock (“Stock Options”), stock appreciation rights to receive the excess, if any, of the fair market value of a specified number of shares of Common Stock at the time of exercise over the grant price (“SARS”) or stock awards at no cost to the Director (“Stock Awards”), which may be either restricted stock or unrestricted stock.  Each grant of a Stock Option, SAR or Stock Award will be subject to a written Award Agreement which shall specify the terms and conditions of the grant as determined by the Board of Directors, provided, however, that the exercise price for any Stock Option or SAR granted shall not be less than the fair market value of the underlying Common Stock on the date of grant.  The Director Plan expires on February 1, 2015.
 
On March 23, 2011, each of our non-employee Directors who was a Director on such date was granted an option under the Director Plan to purchase 10,000 shares of our Common Stock.  The exercise price for these options is $1.925 per share (the fair market value on the date of grant).  The fair market value of our Common Stock is calculated by taking the average of the high and low selling prices as reported on NYSE Amex.  These options vested on March 23, 2012 and expire on March 22, 2021.
 
Each non-employee Director who continues to hold such position as of the second business day following the release of our earning for the first quarter of the 2012 fiscal year will be granted an  option under the Director Plan to purchase 10,000 shares of our Common Stock, except that Mr. Dietz will be granted an option to purchase 12,500 shares of our Common Stock since he did not receive an award for his partial-year service during fiscal year 2011.  The exercise price of these options will be the fair market value on the date of grant, calculated by taking the average of the high and low selling prices on such date as reported on NYSE Amex.
 
 
EXECUTIVE COMPENSATION
Summary Executive Compensation
 
The following table summarizes the total compensation paid to or earned by our Chief Executive Officer and our next two highest compensated executive officers in 2011 (the “named executive officers”) for services rendered to us in all capacities for the fiscal years ended December 31, 2011 and 2010.
 
 
Summary Compensation Table
Name and
Principal Position
Year
Salary ($)
Option
Awards
($)(1)
Non-Equity Incentive Plan Compensation
($)(2)
All Other
Compensation
        ($)       
  Total ($)  
James A. Luksch
Chairman of the Board and Chief Executive Officer
2011
2010
$410,550
410,550
$66,400
-
$-
64,427
$80,579(3)
40,193(3)
$557,529
515,170
Robert J. Pallé, Jr.
President, Chief Operating Officer and Secretary
2011
2010
 
321,300
321,300
66,400
-
-
46,686
27,293(4)
25,300(4)
414,993
393,286
 
Emily M. Nikoo
Executive Vice President
2011
2010
171,000
163,000
33,200
-
-
25,579
13,074(5)
13,077(5)
217,274
201,656
__________________
(1)
 The amounts in the “Option Awards” column reflect the aggregate grant date fair value computed in accordance with FASB ASC Topic 718.  Assumptions used in the calculation of these amounts are included in Note 1(o) to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2011.
 
 
12

 
 

 


(2)
The amounts in the “Non-Equity Incentive Plan Compensation” column for 2010 reflect the cash awards earned during fiscal year 2010 under our Executive Officer Bonus Plan (as described below under the heading “Executive Officer Bonus Plan”).
(3)
The amounts shown in the “All Other Compensation” column for Mr. Luksch include amounts credited for unfunded retirement benefit as deferred compensation, as described below under “Compensation Arrangements,” personal use of a company car, professional fees for tax return preparation, and below market interest benefit on outstanding loan amounts owing to us as described below under “Certain Relationships and Related Transactions.”  These amounts also include our matching contribution to our 401(k) defined contribution plan for the benefit of Mr. Luksch, the dollar value of life insurance premiums paid by us with respect to life insurance for the benefit of Mr. Luksch and the dollar value of the personal benefit portion of premiums paid by us with respect to a split-dollar life insurance arrangement with Mr. Luksch as described below under “Compensation Arrangements.”
(4)
The amounts shown in the “All Other Compensation” column for Mr. Pallé include personal use of a company car, professional fees for tax return preparation, our matching contribution to our 401(k) defined contribution plan for the benefit of Mr. Pallé and the dollar value of life insurance premiums paid by us with respect to life insurance for the benefit of Mr. Pallé, including the supplemental life insurance for the benefit of Mr. Pallé as described below under “Compensation Arrangements.”
(5)
The amounts shown in the “All Other Compensation” column for Ms. Nikoo include personal use of a company car, our matching contribution to our 401(k) defined contribution plan for the benefit of Ms. Nikoo and the dollar value of life insurance premiums paid by us with respect to life insurance for the benefit of Ms. Nikoo.

Compensation  Arrangements.
 
We have no employment agreements with any of our named executive officers, each of which is employed by us on an at-will basis.
 
We maintain group term life insurance for our employees, including our executive officers, for which each participating employee designates his or her own beneficiary.  In March, 2011, our Board of Directors, upon the recommendation of the Compensation Committee, approved the purchase of a supplemental life insurance policy on the life of Mr. Pallé, our President. The supplemental life insurance is a ten year level term policy with a death benefit of $400,000 payable to the beneficiary designated by Mr. Pallé.
 
In May 2010, our Board, upon the recommendation of the Compensation Committee, approved a split-dollar life insurance arrangement in connection with an insurance policy maintained on the life of Mr. Luksch, our Chief Executive Officer, which arrangement was amended in November 2010 (the “Split-Dollar Arrangement”).  Pursuant to the Split-Dollar Arrangement, Mr. Luksch is entitled to designate a beneficiary to receive a portion of the death proceeds payable under the policy upon his death.  Such portion was equal to $125,000 until January 30, 2011.  Thereafter, as an offset to the deferred compensation accruing for the benefit of Mr. Luksch as discussed below, the death benefit payable to Mr. Luksch’s beneficiary decreases on the last day of each calendar month by $6,666.67, until such time as such portion shall be reduced to $0.
 
In November 2010, our Board of Directors, upon the recommendation of the Compensation Committee, approved an unfunded Deferred Compensation Plan for Mr. Luksch, our Chief Executive Officer and Chairman of the Board (the “Deferred Compensation Plan”), which became effective on January 1, 2011.  Pursuant to the Deferred Compensation Plan, Mr. Luksch earns $3,333.33 per calendar month for each completed calendar month of employment with us, up to a maximum of $250,000.  No interest or other rate of return shall be paid on any deferred compensation amount.  The amount accrued under Mr. Luksch’s Deferred Compensation Plan during 2011 was $39,996.
 
Upon Mr. Luksch’s termination of employment for any reason other than for “Cause” (as defined in the Deferred Compensation Plan), beginning 6 months after the date of such termination, we will pay the accumulated deferred compensation in monthly installments equal to $20,000 per month, provided, however, that the first such monthly installment amount shall be equal to the lesser of $120,000 or the total amount accumulated under the Deferred Compensation Plan.  In the event of Mr. Luksch’s death after his termination of employment, all remaining monthly installment payments, if any, shall be paid to his designated beneficiary or estate.  If Mr. Luksch’s employment is terminated for Cause, all accumulated deferred compensation will be forfeited.
 
13
 
 

 
 
In the event of Mr. Luksch’s death prior to his termination of employment, we shall pay to Mr. Luksch’s designated beneficiary or estate an amount equal to 200% of the then accumulated deferred compensation, in monthly installments equal to $20,000 per month, beginning with the first month following the date of his death.
 
Executive Officer Bonus Plan.
 
We provide our executives with an annual opportunity to earn cash incentive awards through the Executive Officer Bonus Plan (the “Executive Bonus Plan”).  These cash bonuses are intended to motivate and reward the achievement of short-term profit, which is a key element of the Compensation Committee’s overall compensation philosophy.  Cash bonus awards under the Executive Bonus Plan are paid to participating officers during a particular fiscal year based upon and relating to our financial performance during the prior fiscal year.  During the first quarter of each fiscal year, we designate which of our executive officers are to participate in the Executive Bonus Plan for that year.  We then establish one or more objective performance goals for the participants and a formula to determine bonus payments based on the achievement of the goal(s).  In no event may the bonus for any participant exceed 100% of the participant’s base salary.
 
The performance goals are expressed in terms of (a) one or more corporate or divisional earnings-based measures (which may be based on net income, operating income, cash flows, or any combination thereof) and/or (b) one or more corporate or divisional sales-based measures.  Each such goal may be expressed on an absolute and/or relative basis, may employ comparisons with our past performance (including one or more divisions) and/or the current or past performance of other companies, and in the case of earnings-based measures, may employ comparisons to capital, stockholders’ equity and shares outstanding.  Performance goals need not be uniform among participants, but they have been in recent years.
 
After our financial results for a fiscal year have been determined, the Compensation Committee will certify the level of performance goal attainment and the potential bonus payment for each participant.  The Compensation Committee has full authority to decrease the amount that would otherwise be payable to any participant for a fiscal year.
 
For the 2011 fiscal year, each of the named executed officers were participants under the Executive Bonus Plan.  The participants were entitled to share in a Bonus Pool (“Bonus Pool”) based upon a subjectively determined allocation, which took into account the relative compensation levels of the executives as well as other subjective factors related to overall job performance in 2010, such as the ease with which the executive could be replaced, whether further opportunities for advancement within Blonder existed for the executive, teamwork skills, perceived efforts, interpersonal relationships and overall job performance.  The Bonus Pool for 2011 was equal to the lesser of (i) the sum of the base salary of all participants in the aggregate, or (ii) the sum of (a) 10% of the first $1 million of our pre-tax income, plus (b) 15% of the next $1 million of our pre-tax income, plus (c) 20% of the next $1 million of our pre-tax income, plus (d) 25% of the next $1 million of our pre-tax income, plus (e) 20% of the next $1 million of our pre-tax income, plus (f) 10% of our pre-tax income in excess of $5 million, all as set forth on our audited financial statements (in all cases calculated before taking into account any accrual for such Bonus Pool).  Further, no bonus would be paid to any participant unless the Bonus Pool (calculated in the manner described above) equaled or exceeded $90,000.  Based upon our reported pre-tax income for 2011, no bonuses were paid to our named executive officers relating to such year.
 
Employee Benefit Plans.
 
In May 2005, our stockholders approved the adoption of the Blonder Tongue Laboratories, Inc. 2005 Employee Equity Incentive Plan (the “2005 Employee Plan”).  Our stockholders approved amendments to the 2005 Employee Plan in May, 2007 and May, 2010, in each case to increase the total number of shares subject to issuance under the 2005 Employee Plan.
 
The 2005 Employee Plan is administered by the Compensation Committee of the Board of Directors.  Under the 2005 Employee Plan, our executive officers and other key employees, as determined by the Compensation Committee, are eligible to receive equity-based awards from time to time as determined by the Compensation Committee.  A maximum of 1,600,000 shares may be awarded under the 2005 Employee Plan, and any shares subject to an award which is terminated, canceled, expired or forfeited for any reason will again be available for the grant of an award.  Under the 2005 Employee Plan, our executive officers and other key employees may be awarded stock options to purchase a number of shares of Common Stock (“Stock Options”), stock appreciation rights to receive the excess, if any, of the fair market value of a specified number of shares of Common Stock at the time of exercise over the grant price (“SARS”), stock awards at no cost to the executive officer or key employee (“Stock Awards”), which may be either restricted stock or unrestricted stock, or performance based awards to receive a number of shares of Common Stock if certain performance goals are met (“Performance Awards”).  Each grant of a Stock Option, SAR, Stock Award or Performance Award will be subject to a written Award Agreement which shall specify the terms and conditions of the grant as determined by the Compensation Committee, provided, however, that the exercise price for any Stock Option or SAR granted shall not be less than the fair market value of the underlying Common Stock on the date of grant.  The 2005 Employee Plan does not preclude us from lowering the exercise price of options.  The 2005 Employee Plan expires on February 1, 2015.
 
14
 
 
 

 
On March 23, 2011, each of Messrs. Luksch and Pallé and  Ms. Nikoo was granted an option under the 2005 Employee Plan to purchase 50,000, 50,000 and 25,000 shares, respectively, of our Common Stock, at an exercise price of $1.925 per share (the fair market value on the date of grant).  The fair market value of our Common Stock is calculated by taking the average of the high and low selling prices as reported on NYSE Amex.  Provided the named executive office is still employed by Blonder, these options vest in three equal installments on the first, second and third anniversary of the grant date and expire on March 22, 2021.
 
Retirement Benefits.

Each of the named executive officers is eligible to participate in our 401(k) Savings and Investment Retirement Plan, which covers all full time employees and is qualified under Section 401(k) of the Internal Revenue Code.  Under this plan, we match 50% of each participating employee’s salary deferral up to a maximum match of 3% of eligible compensation.
 
Outstanding Equity Awards

The following table discloses for each named executive officer all shares of our Common Stock underlying unexercised options as of December 31, 2011.
 
OUTSTANDING EQUITY AWARDS AT DECEMBER 31, 2011
Name
Number of Securities Underlying Unexercised Options (#)
Exercisable(1)
Number of Securities Underlying Unexercised Options (#)
Unexercisable(1)
Option
Exercise Price ($)
Option Expiration Date
James A. Luksch
45,000
(2)
-
 
$1.905
 
03/28/2016
 
 
35,000
(3)
-
 
$1.98
 
04/03/2017
 
 
15,000
(4)
-
 
$0.755
 
11/17/2018
 
 
-
 
50,000
(8)
$1.925
 
03/23/2021
 
Robert J. Pallé, Jr.
35,000
(2)
-
 
$1.905
 
03/28/2016
 
 
25,000
(3)
-
 
$1.98
 
04/03/2017
 
 
15,000
(4)
-
 
$0.8305
(5)
11/17/2013
(5)
 
-
 
50,000
(8)
$1.925
 
03/23/2021
 
Emily M. Nikoo
17,500
(6)
-
 
$3.43
 
03/26/2012
 
 
15,000
(7)
-
 
$3.84
 
03/29/2015
 
 
35,000
(2)
-
 
$1.905
 
03/28/2016
 
 
25,000
(3)
-
 
$1.98
 
04/03/2017
 
 
10,000
(4)
   
$0.8305
(5)
11/17/2013
(5)
 
-
 
25,000
(8)
$1.925
 
03/23/2021
 
__________________
(1)
All option awards were made under the 1995 Long Term Incentive Plan, as amended, or the 2005 Employee Plan.  Since inception of the 2005 Employee Plan through March 31, 2012, Blonder’s current executive officers as a group have been awarded options to purchase an aggregate total of 725,500 shares of Common Stock under the 2005 Employee Plan, excluding awards that have been cancelled or forfeited.  In March 2011, stock option awards were made to the named executive officers under our 2005 Employee Plan with an exercise price of $1.925 per share.  No option awards were made during 2010 under the 2005 Employee Plan.
 
 
15

 
 

 


(2)
This option award vested in three equal installments on March 28, 2007, 2008 and 2009.
(3)
This option award vested in three equal installments on April 3, 2008, 2009 and 2010.
(4)
This option award vested in three equal installments on November 17, 2009, 2010 and 2011.
(5)
This option award was granted with a five-year term and an exercise price equal to 110% of the fair market value on the date of grant to be eligible as a qualified stock option.  The fair market value of our Common Stock is calculated by taking the average of the high and low selling prices as reported on NYSE Amex.
(6)
This option award vested in three equal installments on March 26, 2003, 2004 and 2005.
(7)
This option award vested on May 31, 2005.
(8)
This option vests in three equal installments on March 23, 2012, 2013 and 2014, subject to continued employment with Blonder.


SECURITY OWNERSHIP OF CERTAIN
BENEFICIAL OWNERS AND MANAGEMENT
 
The following table sets forth certain information regarding beneficial ownership of our Common Stock as of March 31, 2012 by (i) each person who is known by us to beneficially own more than five percent of our Common Stock, (ii) each of our Directors, including nominee Directors, (iii) each of our executive officers named in the Summary Compensation Table, and (iv) all our executive officers and Directors as a group.  Except as otherwise indicated, the persons named in the table have sole voting and investment power with respect to all shares that they beneficially own, subject to community property laws where applicable.
 
Name and Address of
Beneficial Owner(1)(2)
Amount and Nature of
Beneficial Ownership (1)
 
Percent of Class Beneficially Owned
James A. Luksch 
754,864
(3)
11.93%
Robert J. Pallé, Jr. 
1,431,616
(4)
22.68%
Emily M. Nikoo
144,356
(5)
2.27%
Anthony J. Bruno
49,567
(6)
*
Charles E. Dietz
0
 
*
Gary P. Scharmett 
148,600
(7)
2.36%
Steven L. Shea
81,440
(8)
1.31%
James F. Williams 
127,500
(9)
2.03%
Peter J. Abrahamson
24156 N. Coventry Lane
Lake Barrington, IL 60010-7334
380,000
(10)
6.11%
All Directors and executive officers as a group (14 persons)
3,072,335
 
43.27%
 
_______________
 
*     Less than 1%
 
(1)
Beneficial ownership as of March 31, 2012 for each person listed includes shares subject to options held by such person which are exercisable within 60 days after such date.  Beneficial ownership is determined in accordance with the rules of the Commission and generally includes voting or investment power with respect to securities, which voting or investment power may be further described in the footnotes below.  This table contains information furnished to us by the respective stockholders or contained in filings made with the Commission.  Certain of our executive officers and Directors may, from time to time, hold some or all of their Common Stock in brokerage accounts having outstanding margin loan balances secured by the Common Stock and the other investment securities held in such brokerage accounts.
(2)
Unless otherwise indicated, the address for each beneficial owner is c/o Blonder Tongue Laboratories, Inc., One Jake Brown Road, Old Bridge, NJ 08857.
(3)
Includes 294 shares of Common Stock held of record by Mr. Luksch’s spouse, as to which Mr. Luksch expressly disclaims beneficial ownership, and 111,667 shares of Common Stock underlying options granted by us which are exercisable within 60 days after March 31, 2012.  374,134 and 199,000, respectively, of the shares of Common Stock owned by Mr. Luksch are pledged as collateral to secure loans to Mr. Luksch from two separate banks.
 
16

 
 

 


(4)
Includes 200,000 shares of Common Stock owned of record by a limited liability company of which Mr. Pallé and his spouse are the sole members, 91,667 shares of Common Stock underlying options granted by us to Mr. Pallé which are exercisable within 60 days after March 31, 2012, and 6,000 shares of Common Stock underlying options granted by us to Mr. Pallé’s spouse, who holds a non-officer position with Blonder, which are exercisable within 60 days after March 31, 2012.
(5)
Includes 10,188 shares of Common Stock owned jointly by Ms. Nikoo and her spouse, who is one of our Vice Presidents, 93,334 shares of Common Stock underlying options granted by us which are exercisable within 60 days after March 31, 2012, and 40,835 shares of Common Stock underlying options granted by us to Ms. Nikoo’s spouse.
(6)
Includes 44,167 shares of Common Stock underlying options granted by us which are exercisable within 60 days after March 31, 2012.
(7)
Includes 80,000 shares of Common Stock underlying options granted by us which are exercisable within 60 days after March 31, 2012.
(8)
Includes 22,500 shares of Common Stock underlying options granted by us which are exercisable within 60 days after March 31, 2012.
(9)
Includes 80,000 shares of Common Stock underlying options granted by us which are exercisable within 60 days after March 31, 2012.
(10)
Based on a Schedule 13G/A filed by Peter J. Abrahamson with the Commission on January 27, 2012.
 
 
Section 16(a) Beneficial Ownership Reporting Compliance
 
Section 16(a) of the Securities Exchange Act of 1934 requires our Directors and executive officers, and persons who own more than ten percent of our Common Stock, to file with the Commission and the NYSE Amex, initial reports of ownership and reports of changes in ownership of Common Stock and our other equity securities.  Officers, Directors and greater than ten percent stockholders (collectively, “Reporting Persons”) are additionally required to furnish us with copies of all Section 16(a) forms they file.
 
To our knowledge, based solely on review of the copies of such reports furnished to us or written representations that no reports were required with respect to fiscal year 2011, we believe that all Section 16(a) filing requirements applicable to Reporting Persons were complied with on a timely basis during 2011, except that (1) Norman A. Westcott filed a late Form 4 reporting a transaction dated May 31, 2011 (filed June 10, 2011) and a late Form 4 reporting a transaction dated August 2, 2011 (filed August 17, 2011), and (2) Kant Mistry filed a late Form 4 reporting two transactions related to the exercise of an option on November 17, 2011 (filed April 4, 2012).
 
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
 
The Chief Executive Officer’s daughter, Emily Nikoo, is our Executive Vice President.  Ms. Nikoo’s annual salary (including bonus) in 2011 and 2010 was $171,000 and $188,579, respectively.  Nezam Nikoo, Ms. Nikoo’s husband and our Chief Executive Officer’s son-in-law, is our Vice President –Advanced Digital Technologies.  Mr. Nikoo’s annual salary (including bonus) in 2011 and 2010 was $164,500 and $181,440, respectively.
 
One of our Directors, Gary P. Scharmett, is a partner at the law firm of Stradley, Ronon, Stevens & Young, LLP, which serves as our outside counsel.  During the 2011 and 2010 fiscal years, we paid fees for legal services to this firm in the aggregate amount of $317,000 and $302,000, respectively.  Mr. Scharmett’s interest in this relationship arises from his minority ownership interest as a partner at this firm.  In management's opinion, the terms of such services were substantially equivalent to those which would have been obtained from unaffiliated parties.

As of March 31, 2012, James A. Luksch, our Chief Executive Officer and a Director, was indebted to us in the amount of $128,114, for which we have charged no interest.  This indebtedness arose from a series of cash advances made to Mr. Luksch, the latest of which was advanced in February, 2002.  The largest aggregate amount of indebtedness during both the 2011 and 2010 fiscal years was $140,589.  This debt was being repaid at the rate of $1,000 per month, all of which represented principal payments on the indebtedness, until November 2008 when Mr. Luksch and his spouse filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code.  Mr. Luksch’s interest in the Bankruptcy petition in connection with this indebtedness was adverse to us.  Under Mr. Luksch’s plan of reorganization, we will receive a pro-rata share, with all other unsecured creditors, of the excess, if any, of Mr. Luksch’s disposable income after the payment of all administrative claims and other expenses.  Mr. Luksch paid $6,500 and $4,375 of principal during the 2011 and 2010 fiscal years, respectively.
 
17
 
 

 
 
On December 6, 2007, we entered into an agreement (the “Buffalo City Contract”) to provide manufacturing, research and development and product support to Buffalo City Center Leasing, LLC (“Buffalo City”) for an electronic on-board recorder known as RouteTracker™, that Buffalo City was producing for Turnpike Global Technologies, LLC (which was purchased in 2010 by, and operates as a division of, XATA Corporation).  Under the Buffalo City Contract, Buffalo City agreed to purchase from us a minimum quantity of 25,000 units over a period of three (3) years, for a total purchase of approximately $4,000,000. The agreement with Buffalo City expired by its terms in the first quarter of 2011, however, Buffalo City continued purchasing such product from the Company through July, 2011 on the same terms and conditions.  In the second quarter of 2011, we entered into a new agreement directly with XATA Corporation (the “XATA Agreement”), which sets forth the terms and conditions of purchases by XATA of the next generation of the product.  The XATA Agreement also permits XATA to obtain financing from approved third party lenders to finance its purchases from the Company.  In November 2011, the Company and Buffalo City entered into a letter agreement (the “Buffalo City Agreement”) to memorialize the agreement by which we approved Buffalo City to act as an approved third party lender to XATA and permitted Buffalo City (in this capacity) to purchase products from us on open account with a credit limit of $1,000,000, the terms for payment of which were net 110-days after shipment.  Under the terms of the XATA Agreement, the obligations of Buffalo City to us were guaranteed by XATA.  During the first quarter of 2012, Buffalo City advised us that Buffalo City would no longer be financing products as an approved third-party lender for XATA.  As such, effective as of February 10, 2012, we and Buffalo City terminated Buffalo City’s status as an approved lender under the Buffalo City Agreement.  All amounts due from Buffalo City to us have been paid in full.  One of our Directors, James F. Williams, is a director, managing member and vice president of Buffalo City.  Additionally, Mr. Williams may be deemed to control the entity which owns fifty percent (50%) of the membership interests of Buffalo City.  We have received $7,508,000 in cumulative revenue from Buffalo City in connection with these arrangements.  We received $2,968,000 and $2,331,000 in revenue from Buffalo City in 2011 and 2010, respectively.

PROPOSAL NO. 2 – RATIFICATION OF APPOINTMENT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTANTS
 
Our Audit Committee has selected Marcum LLP to serve as our independent registered public accountants for the fiscal year ending December 31, 2012.  Marcum LLP has been our independent registered public accountants since October 24, 2005.  We have been advised by Marcum LLP that neither it nor any member thereof has any financial interest, direct or indirect, in us or any of our subsidiaries, in any capacity.  One or more representatives of Marcum LLP is expected to be present at this year’s Annual Meeting of Stockholders with an opportunity to make a statement if he or she desires to do so and to answer appropriate questions with respect to that firm’s examination of our financial statements and records for the fiscal year ended December 31, 2011.
 
Although the submission of the appointment of Marcum LLP is not required by our By-Laws, the Board is submitting it to the stockholders to ascertain their views.  If the stockholders do not ratify the appointment, we will not be bound to seek other independent registered public accountants for 2012, but the selection of other independent registered public accountants will be considered in future years.

Audit and Other Fees Paid to Independent Registered Public Accountants
 
The following table presents fees billed by Marcum LLP for professional services rendered for the fiscal years ended December 31, 2011 and December 31, 2010.
 
Services Rendered
Fiscal 2011
Fiscal 2010
Audit Fees
$229,559
$233,985
Audit-Related Fees
32,000
29,500
Tax Fees
37,500
34,075
All Other Fees
-
-
 
 
18
 
 

 
 
Audit Fees
 
The audit fees for fiscal years 2011 and 2010 were billed or expected to be billed for professional services rendered for the audit of our annual financial statements, the reviews of the financial statements included in our Quarterly Reports on Form 10-Q, consents to incorporate audited financial statements into registration statements related to our employee benefit plans, and assistance with earnings announcements on Form 8-K.
 
Audit-Related Fees
 
The audit-related fees for fiscal years 2011 and 2010 consisted principally of audits of our pension and 401(k) plans.
 
Tax Fees
 
Tax fees for fiscal years 2011 and 2010 consisted principally of preparing our U.S. federal and state income tax returns.
 
Our Audit Committee has reviewed the non-audit services currently provided by our independent registered public accountants and has considered whether the provision of such services is compatible with maintaining the independence of such independent registered public accountants.  Based on such review and consideration, the Audit Committee has determined that the provision of such non-audit services is compatible with maintaining the independence of the independent registered public accountants.
 
Pre-Approval Policy for Services by Independent Registered Public Accountants
 
Our Audit Committee has implemented pre-approval policies and procedures for the engagement of our independent registered public accountants for both audit and permissible non-audit services.  Under these policies and procedures, all services provided by the independent registered public accountants must either (i) be approved by our Audit Committee prior to the commencement of the services, (ii) relate to assisting us with tax audits and appeals before a taxing authority or be services associated with periodic reports or registration statements filed by us with the Commission, all of which services are pre-approved by our Audit Committee, or (iii) be a de minimis non-audit service (as described in Rule 2-01(c)(7)(i)(C) of Regulation S-X) that does not have to be pre-approved as long as management promptly notifies our Audit Committee of such service and our Audit Committee approves it prior to the service being completed.  Within these parameters, our Audit Committee annually approves the scope and fees payable for the year end audit, statutory audits and employee benefit plans to be performed by the independent registered public accountants for the next fiscal year.  Our Audit Committee also delegates pre-approval authority for permissible non-audit services to the Audit Committee’s Chairman.  Any approvals of non-audit services made by our Audit Committee’s Chairman are then reported by him at the next Audit Committee meeting.  All of the services provided by our independent registered public accountants during fiscal year 2011 were approved in accordance with our pre-approval policies and procedures.  None of the services were approved pursuant to Rule 2-01(c)(7)(i)(C) of Regulation S-X.

Recommendation of the Board Concerning the Ratification of Appointment of Independent Registered Public Accountants
 
Our Board of Directors recommends that stockholders vote FOR the ratification of the appointment of Marcum LLP as our independent registered public accountants for the 2012 fiscal year.  Proxies received by the Board of Directors will be so voted unless stockholders specify in their proxies a contrary choice.

OTHER BUSINESS

We know of no other matters that will be presented at the Annual Meeting of Stockholders.  However, if any other matter properly comes before the meeting, or any adjournment or postponement thereof, it is intended that proxies in the accompanying form will be voted in accordance with the judgment of the persons named therein.
 
19
 
 

 
 
STOCKHOLDER PROPOSALS
 
Director Nominations at the Annual Meeting

Our By-laws require advanced notice of any stockholder proposal for nomination for the election of a Director.  Notice of any such stockholder proposal must be received by our Corporate Secretary at One Jake Brown Road, Old Bridge, New Jersey 08857 not less than sixty (60) days prior to the date of the scheduled annual meeting, regardless of any postponement, deferrals or adjournments of that meeting to a later date, however, if less than seventy (70) days’ notice of the date of the scheduled annual meeting is given, then to be timely, such notice must be received not later than the close of business on the tenth (10th) day following the earlier of the date notice of the scheduled annual meeting was mailed or the date of public disclosure of the annual meeting date.  Accordingly, any stockholder who wished to have a Director nomination considered at the 2012 Annual Meeting must have delivered notice to the Secretary no later than the close of business on March 24, 2012.  Any proposal received after that date is considered untimely.

Stockholder Proposals for Inclusion in 2013 Proxy Statement

The date by which we must receive stockholder proposals intended to be included in our Proxy Statement for presentation at the 2013 Annual Meeting of Stockholders is December 25, 2012, to be eligible for inclusion in such Proxy Statement.  Stockholder proposals must comply with all of the applicable rules and requirements set forth in the rules and regulations of the Commission, including Rule 14a-8 of the Securities Exchange Act of 1934, as amended.  Stockholder proposals should be sent to our Chief Financial Officer at One Jake Brown Road, Old Bridge, New Jersey 08857.

Stockholder Proposals for Presentation at the 2013 Annual Meeting

Other than a proposal for nomination for the election of a Director which is subject to the advance notice requirements described above, if notice of a stockholder proposal intended to be presented at the 2013 Annual Meeting of Stockholders is not received by us on or before March 9, 2013 (whether or not the stockholder wishes the proposal to be included in the proxy statement for such annual meeting), we (through management proxy holders) may exercise discretionary voting authority on such proposal when and if the proposal is raised at the annual meeting without any reference to the matter in the Proxy Statement.

FORM 10-K
 
A COPY OF OUR ANNUAL REPORT ON FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER 31, 2011 ACCOMPANIES THIS PROXY STATEMENT.  WE WILL FURNISH TO EACH PERSON WHOSE PROXY IS BEING SOLICITED, UPON WRITTEN REQUEST, ANY EXHIBIT DESCRIBED IN THE LIST ACCOMPANYING THE FORM 10-K, UPON THE PAYMENT, IN ADVANCE, OF REASONABLE FEES RELATED TO OUR FURNISHING SUCH EXHIBIT(S).  REQUESTS FOR COPIES OF SUCH EXHIBIT(S) SHOULD BE DIRECTED TO OUR CHIEF FINANCIAL OFFICER AT OUR PRINCIPAL ADDRESS AS SHOWN ON THE COVER PAGE OF THIS PROXY STATEMENT.
 
By Order of the Board of Directors
 
James A. Luksch
Chairman of the Board and
Chief Executive Officer

 
Date:  April 23, 2012
Old Bridge, New Jersey
 
20
 
 

 
ANNUAL MEETING OF STOCKHOLDERS OF

BLONDER TONGUE LABORATORIES, INC.

May 23, 2012


Important Notice Regarding the Availability of Proxy Materials
for the Stockholder Meeting to be Held on May 23, 2012
The proxy statement and annual report to shareholders are available at:
 http://www.amstock.com/ProxyServices/ViewMaterial.asp?CoNumber=07796



Please date, sign and mail
your proxy card in the
envelope provided as soon
as possible.


Please detach along perforated line and mail in the envelope provided.

 
■  20230000000000000000  0         052312

THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR ALL NOMINEES” FOR THE ELECTION OF DIRECTORS AND “FOR” PROPOSAL 2.  PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE.   PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE: x
 
1.    Election of two Class II Directors to hold office
       until the 2015 Annual Meeting of Stockholders
       and until qualified successor directors have 
       been elected or until their resignation or removal.
 
             NOMINEES:
 
o FOR ALL NOMINEES       m Robert J. Pallé, Jr.
              mGary P. Scharmett
 
 o WITHHOLD AUTHORITY  
          FOR ALL NOMINEES        
  
     o FOR ALL EXCEPT
(See Instructions below)
 
INSTRUCTION: To withhold authority to vote for any individual nominee(s) mark “FOR ALL EXCEPT”  and fill in the circle next to each nominee you wish to withhold as shown here: l
 
                                                                                                                               FOR       AGAINST    ABSTAIN      
2.   Proposal to ratify the appointment of Marcum LLP as the               o    o    o           
    independent registered public accountants for the fiscal 
    year ending December 31, 2012.  
 
 
In their discretion, the Proxies are authorized to vote upon such other matters as may properly come before the meeting and at any postponements or adjournments thereof.
 
This proxy when properly executed will be voted in the manner directed by the stockholder.  If no direction is made on this Proxy Card, this Proxy will be voted FOR the election of all nominees to serve as Class II Directors and FOR proposal 2.  On all other matters which may properly come before the meeting, the shares represented by this proxy will be voted by the Proxies in accordance with the instructions of the Board of Directors.
   
 
 
 
 
To change the address on your account, please check the box at right and indicate your new address in the address space above.  Please note that changes to the registered name(s) on the account my not be submitted via this method.
  o  
               
Signature of  Stockholder
 
Date:
 
Signature of  Stockholder
 
Date:
 
Note:     Please sign exactly as your name or names appear on this Proxy.  When shares are held jointly, each holder should sign.  When signing as executor, administrator, attorney, trustee or guardian, please give full title as such.  If the signer is a corporation, please sign full corporate name by duly authorized officer, giving full title as such.  If signer is a partnership, please sign in partnership name by authorized person.

 
 

 



























o      

BLONDER TONGUE LABORATORIES, INC.
One Jake Brown Road
Old Bridge, NJ 08857
 
PROXY CARD FOR ANNUAL MEETING OF STOCKHOLDERS
MAY 23, 2012
 
THIS PROXY IS BEING SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
 
The Undersigned hereby appoints James A. Luksch and Robert J. Pallé, Jr., and either of them (with full power to act alone), as Proxies of the undersigned, each with the power to appoint his substitute, and hereby authorizes them to represent and to vote, as designated on this Proxy Card, all shares of Common Stock of Blonder Tongue Laboratories, Inc. (the “Company”) held of record by the undersigned on the record date of March 31, 2012, at the Annual Meeting of Stockholders to be held on May 23, 2012 and at any postponements or adjournments thereof, all as in accordance with the Notice of Annual Meeting of Stockholders and Proxy Statement furnished with this Proxy.
 
(Continued and to be signed on the reverse side)


  14475    ■