Document:

Exhibit 10.3

  Exhibit 10.3
 AGREEMENT AND RELEASE
 This Separation Agreement and General Release (this “Agreement”) dated as of July 31, 2018 (the “Effective Date”) is entered into by and between Trans-Lux Corporation, a Delaware corporation (the “Company”) and Jean-Marc Allain (“Employee,” and, together with the Company, the “Parties”).
  
 RECITALS
 WHEREAS, the Parties are subject to an employment agreement dated March 30, 2015 (the “Employment Agreement”), whereby the Employee would serve as Chief Executive Officer (“CEO”) of the Company;
 WHEREAS, the Employee has not been acting CEO or serving in his other capacities since April 24, 2018;
 WHEREAS, the Parties desire to amicably terminate the employment relationship and settle all issues between them, including any issues under the Employment Agreement;
 NOW THEREFORE, in consideration of the foregoing and in consideration of the covenants, warranties and promises set forth below, receipt of which is hereby acknowledged, the Parties agree as follows: 
 AGREEMENT
 1.                 The Parties acknowledge and agree that Employee voluntarily resigned as President and Chief Executive Officer and Chief Accounting Officer as well as a Director of  the Company as of  July 16, 2018 (“Separation Date”). Except as required or permitted by this Agreement, as of the date of execution of this Agreement, the Employee shall not hold himself out as an employee, agent, or representative of the Company or any of its affiliates. 
 2.                  In consideration for the promises under this Agreement, the Company shall: (i) provide Employee severance equal to Employee’s Base Salary under the Employment Agreement for a period of ten weeks from July 20, 2018 (until September 30, 2018) aggregating $ 57,692.30 less accrued vacation pay of $12,882.69 (89.32 hours) for a net severance amount of $44,909.61, less applicable taxes and withholdings, to be paid in installments in accordance with the Company’s standard payroll practices, and (ii) reimburse Employee for $5,179.03 in business expenses made on the Company’s behalf, and (iii) reimburse Employee for the Company’s portion of the COBRA premiums associated with health insurance continuation coverage until the earliest of (A) three (3) months from the Separation Date or (B) the first date on which Employee becomes eligible for coverage under another group health insurance plan; provided that Employee timely elects and is eligible for COBRA coverage.  The Company shall reimburse Employee within ten (10) business days of its receipt of documentation from Employee showing proof of payment of such COBRA premiums.  Employee agrees to immediately notify the Company should Employee become eligible for health care benefits under another group health insurance plan at any time prior to the end of the three (3) month reimbursement period. All payments under (i) of this Paragraph above shall begin to be made within seven (7) days following the Release Effective Date, defined below. The Company and the Employee acknowledge that Insperity PEO Services, L.P. (“Insperity”) has no obligation to pay the Employee the compensation set forth in this Section  2.
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3.                  The Employee acknowledges that all terms of the Employment Agreement intended to survive termination of the Employment Agreement, remain in effect, including but not limited to the Restrictive Covenants in Sections 6.1-6.4 of the Employment Agreement. The Employee acknowledges that he is not entitled to payment of any monies owed up to and including the Separation Date and that he is not entitled to the benefits listed in Section 2 of this Agreement. 
 4.                  (a) As a material inducement to the Employee entering into this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Employee, on behalf of himself and his heirs, executors, administrators, trustees, legal representatives, agents and assigns (collectively the “Employee Releasors”) forever releases and discharges (i) the Company and Insperity and their respective past, present and future parent entities, subsidiaries, divisions, affiliates and related business entities, successors and assigns, and their respective past, present and future directors, officers, shareholders, members, partners, fiduciaries, agents, trustees, administrators, employees and assigns, whether acting on behalf of the Company or in their individual capacities, collectively, (the “Company Releasees”) from any and all claims, Claims which any of the Employee Releasors ever had, now have, or may have against any of the Company Releasees from the beginning of the world through the Effective Date; provided however that this release does not release or waive any representations, covenants, duties or obligations of the Company Releasees under this Agreement.
   (b)   Without limiting the generality of the foregoing subsection (a), this Agreement is intended to and shall release the Company Releasees from any and all claims arising out of Employee’s employment with the Company and/or the termination of Employee’s employment, including but not limited to any claim(s) under or arising out of (i) the Employment Agreement, (ii) Title VII of the Civil Rights Act of 1964, as amended; (iii) the Americans with Disabilities Act, as amended; (iv) the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) (excluding claims for accrued, vested benefits under any employee benefit plan of the Company in accordance with the terms of such plan and applicable law); (v) the Age Discrimination in Employment Act of 1967; (vi) the Older Workers Benefits Protection Act; (vii) the Sarbanes-Oxley Act of 2002; (viii) the Dodd-Frank Act; (ix) the Internal Revenue Code of 1986; (x) the New York Labor Law; (xi) the New York Wage Theft Prevention Act, (xii) the New York State or City Human Rights Laws; (xiii) the New York City Earned Sick Time Act; (xiv) alleged discrimination or retaliation in employment (whether based on federal, state or local law, statutory or decisional); (xv) the terms and conditions of Employee’s employment with the Company, the separation of such employment, and/or any of the events relating directly or indirectly to or surrounding that separation; and (xvi) any law (statutory or decisional) providing for attorneys’ fees, costs, disbursements and/or the like. 
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  (c)   Notwithstanding the foregoing, nothing in this Agreement shall be construed to prevent Employee from filing a charge with or participating in an investigation conducted by any governmental agency, including, without limitation, the United States Equal Employment Opportunity Commission (“EEOC”) or applicable state or city fair employment agency or the Securities and Exchange Commission (“SEC”), to the extent required or permitted by law. Nevertheless, Employee understands and agrees that he is waiving any relief available (including, for example, monetary damages or reinstatement), under any of the claims and/or causes of action waived in Sections 4(a) and (b), including but not limited to financial benefit or monetary recovery from any lawsuit filed or settlement reached by the EEOC or anyone else with respect to any claims released and waived in this Agreement. Notwithstanding the foregoing, nothing in this Agreement limits Employee’s right to receive an award for information provided to the SEC or other similar government agency or commission.
 5.                  The Employee shall have up to twenty-one (21) days from the date of their receipt of this Agreement, to consider the terms and conditions of the Agreement. They may accept this Agreement at any time by executing it and returning it to Sal Zizza no later than 5:00 p.m. on the twenty-first (21st) day after their receipt of this Agreement.  Thereafter, the Employee will have seven (7) days to revoke this Agreement by stating his desire to do so in writing to Sal Zizza. The effective date of this Agreement shall be the eighth (8th) day following the Employee signing of this Agreement (the “Release Effective Date”), provided the Employee does not revoke the Agreement during the revocation period.  In the event the Employee does not accept this Agreement as set forth above, or in the event the Employee revokes this Agreement during the revocation period, this Agreement, including but not limited to the obligation of the Company and its subsidiaries and affiliates to provide the payments and/or benefits referred to in Paragraph 2 above, shall automatically be deemed null and void.   
 6.                  (a)  The Employee acknowledges that he has not and will not engage in any conduct, make any comment, or act in any manner, which is derogatory towards the Company, their operations, their Affiliates, or licensees, and has not or will not engage in conduct that is injurious to the Company’s or the Company Releasees’ reputation or interest, or any conduct that would reasonably be expected to lead to unwanted or unfavorable publicity to the Company, including but not limited to (i) divulging, communicating, or in any way making use of any Confidential Information (defined below) acquired in the performance of his duties at the Company or (ii) publicly disparaging (or inducing or encouraging others to publicly disparage) the Company, its employees, or the Company Releasees.  
              (b)  Employee represents that he has not filed any grievance, suit, action or claim against any of the Company Releasees and, to the extent in compliance with applicable law, that he will not do so at any time hereafter with respect to the matters set forth herein, other than to enforce the terms of this Agreement.  
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             (c)  The Employee acknowledges that the terms of the Company’s policies regarding confidentiality and non-disclosure, including the Company’s policies as defined in Section 6.2 of the Employment Agreement, are (other than as set forth herein) incorporated herein by reference, and Employee agrees and acknowledges that he is bound by their terms. Specifically, Employee may not disclose any trade secrets, confidential or proprietary information, knowledge, or know-how pertaining to the past or present business of the Company or any confidential or proprietary information concerning any past or present assets or liabilities of the Company (collectively, the “Confidential Information”), including, without limitation, its financial statements, business plans, marketing ideas and plans, internal memoranda, reports, audits, patient surveys, employee surveys, operating policies, quality assurance materials, fees, and other materials or records of a proprietary nature.  Employee further agrees not to disclose or use any Confidential Information for any purpose, including without limitation any competitive purpose, unless authorized to do so by the Company in writing.  Employee’s obligations will continue with respect to Confidential Information until such information becomes generally available from public sources through no fault of Employee or any representative of Employee. Employee will promptly deliver to the Company the laptop computer in his possession. The Company will return the laptop to Employee once it has removed proprietary information. The Parties agree that Employee may keep his cell phone number and cell phone. Upon the Company’s request, Employee will promptly (at his option but at the Company’s expense) deliver to the Company or destroy all documents, records, files, notebooks, manuals, letters, notes, reports, patient and supplier lists, cost and profit data, e-mail, apparatus, hardware, software, drawings, blueprints, and any other material of the Company or any of its Affiliated Entities or licensees, including all materials pertaining to Confidential Information developed by the Company, and all copies of such materials, whether of a technical, business or fiscal nature, whether on the hard drive of a laptop or desktop computer, in hard copy, disk or any other format, which are in his possession, custody or control.
 7.          The Employee (at the cost of the Company) will reasonably cooperate with the Company and/or its subsidiaries and affiliates and its/their counsel in connection with any investigation, administrative proceeding or litigation relating to any matter in which Employee was involved or of which Employee has knowledge.
 8.                  The terms and conditions of this Agreement are and shall be deemed to be confidential, and shall not be disclosed by Employee or by the Company to any person or entity without the prior written consent of the other party, except if required by law, and to Employee’s or the Company’s accountants, attorneys, and spouse, provided that they agree to maintain the confidentiality of this Agreement.  Employee and the Company further represent that each has not disclosed the terms and conditions of this Agreement to anyone other than their attorneys, accountants and spouse.  
 9.                  The making of this Agreement is not intended, and shall not be construed, as an admission that any of the parties hereto have violated any federal, state or local law (statutory or decisional), ordinance or regulation, breached any contract, or committed any wrong whatsoever.
 10.              The Parties agree that this Agreement may not be used as evidence in a subsequent proceeding except in a proceeding to enforce the terms of this Agreement.
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11.              The Employee acknowledges that: (a) he has carefully read this Agreement in its entirety; (b) he has had an opportunity to consider fully the terms of this Agreement; (c) he has been given twenty-one (21) days from the day he received a copy of this Agreement and understands and agrees that he is specifically releasing the Company from any and all claims; (d) he has been advised by the Company to consult with an attorney of his choosing in connection with this Agreement; (e) he fully understands the significance of all of the terms and conditions of this Agreement and he has discussed it with his independent legal counsel, or has had a reasonable opportunity to do so; and (f) he is signing this Agreement voluntarily and of his own free will and assents to all the terms and conditions contained herein.
 Each person signing this Agreement in his or her representative capacity represents and warrants by signing this Agreement that it is his or her intent to bind his or her principal to the terms contained herein, that the person signing in his or her representative capacity has been authorized to bind the respective principal to such terms, and that it is the principal's intent to be so bound. Each party represents and warrants that no other person or entity has had any interest in the claims, demands, obligations, or causes of action referred to in this Agreement except as otherwise set forth herein and that each party has the sole right and exclusive authority to execute this Agreement either in his/her individual capacity or as a representative of the company for which he/she signs.  This Agreement upon each party’s execution and delivery will be, valid and binding obligations of such party, enforceable against him/her/it in accordance with the terms hereof and thereof, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights of creditors generally and by equitable principles.  Each party represents that it/he/she has received independent legal and tax advice in connection with this Agreement and fully understands the legal and tax ramifications of this Agreement and the transactions set forth herein. The parties acknowledge that this Agreement is fair and equitable, and it is not the result of any fraud, duress or undue influence exercised by either of the parties.
 12.              This Agreement is binding upon, and shall inure to the benefit of the parties and their respective heirs, executors, administrators, successors, and assigns.  Each of parties shall take any and all steps, and execute any and all documents, reasonably requested by the other party to effectuate the purposes set forth in this Agreement.
 13.              If any provision of this Agreement shall be held by a court of competent jurisdiction to be illegal, void, or unenforceable, such provision shall be of no force and effect.  However, the illegality or unenforceability of such provision shall have no effect upon, and shall not impair the enforceability of, any other provision of this Agreement; provided, however, that, upon any finding by a court of competent jurisdiction that any of the releases or covenants provided for by Sections 3, 4, and/or 6 above are illegal, void, or unenforceable, the parties agree to execute releases, waivers and/or covenants with substantially similar provisions that are legal and enforceable.  Finally, any breach of any of the terms of Sections 3, 4, 6, and/or 8 above shall constitute a material breach of this Agreement as to which any party may seek appropriate relief in a court of competent jurisdiction.
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14.              This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York without regard to the conflict of laws provisions thereof.  Each of the parties hereto hereby irrevocably submits to the exclusive jurisdiction of any appropriate state or federal court of record in New York, NY over any action or proceeding arising out of or relating to this Agreement and each of the parties hereto hereby irrevocably agrees that all claims in respect of such action or proceeding shall be heard and determined in such New York state or Federal court.  Each of the parties hereto hereby irrevocably waives, to the fullest extent legally possible, the defense of an inconvenient forum to the maintenance of such action or proceeding.
 15.              This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which together shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other party.  Facsimile or .pdf signatures shall have the same force and effect as original signatures.  The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as thereafter waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.  The drafting and negotiation of this Agreement have been participated in by each of the Parties, and for all purposes this Agreement shall be deemed to have been drafted jointly by each of the Parties.
 16.              All notices under this Agreement shall be in writing, and shall be deemed given when personally delivered, or delivered by overnight courier, or three days after being sent by prepaid certified or registered U.S. mail to the address of the party as set forth at the beginning of this Agreement or such other address as such party last provided to the other by written notice.   
 17.              This Agreement constitutes the complete understanding between the parties with respect to the termination of Employee’s employment at the Company and supersedes any and all agreements, understandings, and discussions, whether written or oral, between the parties regarding the subject herein.  No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by each of the parties hereto. The Company and the Employee acknowledge that Insperity is a third party beneficiary of Sections 2 and 4 of this Agreement.
 [Signature page follows]
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered on the date above.

  	 	 Trans-Lux Corporation

	 	 	
	 	 By:
	 /s/ Alberto Shaio

	 	 	 Title: CEO

	 	 	 Date: August 20, 2018

	  
	  
	  

	  
	  
	  

	 Agreed to and Accepted:
	 	
	 Date:
	 	 
	 	 	
	 /s/ Jean-Marc Allain
	 	 
	 Jean-Marc Allain
	 	

  
 7Exhibit 10.4

  Exhibit 10.4
  
 FORBEARANCE AGREEMENT 
 TO CREDIT AND SECURITY AGREEMENT
 THIS FORBEARANCE AGREEMENT TO CREDIT AND SECURITY AGREEMENT (this “Agreement”), dated as of November 6, 2018, is made and entered into by and among CNH FINANCE FUND I, L.P., a Delaware limited partnership (formerly known as SCM Specialty Finance Opportunities Fund, L.P.) (“Lender”), and TRANS-LUX CORPORATION, a Delaware corporation (“Trans-Lux Corp.”), TRANS-LUX DISPLAY CORPORATION, a Delaware corporation, TRANS-LUX MIDWEST CORPORATION, an Iowa corporation, TRANS-LUX ENERGY CORPORATION, a Connecticut corporation (collectively, “Borrowers”).
 WHEREAS, Borrowers and Lender are parties to that certain Credit and Security Agreement dated, as of July 12, 2016 (as amended to date, and as the same may from time to time be further amended, restated, supplemented or otherwise modified, the “Credit Agreement”), pursuant to which, subject to the terms and conditions set forth therein, Lender has made certain credit facilities available to Borrowers;  
 WHEREAS, an Event of Default under the Credit Agreement has occurred and is continuing by reason of Borrowers’ failure to comply with the Fixed Charge Coverage Ratio covenant as of the calendar month ending September 30, 2018, as required pursuant to Section 7.1 of the Credit Agreement (the “Subject Event of Default”);
 WHEREAS, by reason of the occurrence and continuance of the Subject Event of Default, Lender is entitled to immediately exercise its rights and remedies under the Credit Agreement and the other Loan Documents, and Borrowers have no defenses, offsets or counterclaims to the exercise of such rights and remedies;
 WHEREAS, Borrowers have advised Lender that on or about the date hereof Trans-Lux Corp. will be issuing and selling up to 1,315,789 shares of Trans-Lux Corp.’s common stock and certain warrants to Unilumin North America Inc., a Delaware corporation (the “Investor”), in exchange for cash consideration of not less than $1,500,000.00 (the “First Equity Raise”);
 WHEREAS, Borrowers have advised Lender that on or before February 28, 2019, Trans-Lux Corp. will be issuing and selling additional shares of Trans-Lux Corp.’s common stock in connection with the exercise of warrants by Investor in exchange for cash consideration of not less than $8,000,000.00 (the “Second Equity Raise” and together with the First Equity Raise, the “Equity Raises”); and
 WHEREAS, Borrowers have requested and Lender has agreed, for the period from the date hereof through the end of the Forbearance Period (as defined below), to forbear from exercising its rights and remedies under the Loan Documents with respect to the Subject Event of Default subject to the terms and conditions set forth herein.
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 NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants and conditions herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
 1.                  Defined Terms.  Capitalized terms used but not defined herein that are defined in the Credit Agreement shall have the meanings assigned to them in the Credit Agreement.
 2.                  Agreement to Forbear.  During the period commencing on the date hereof and ending on the earlier to occur of (i) February 28, 2019 and (ii) the occurrence of any Additional Default (as defined below) (the “Forbearance Period”), and subject to the specific terms and conditions set forth, Lender agrees that it will forbear from exercising its rights and remedies under the Loan Documents due to the Subject Event of Default.  Notwithstanding any provision of this Agreement, the Forbearance Period shall terminate, and nothing contained herein shall limit any rights or remedies of Lender under the Credit Agreement or any other Loan Document, upon a Default or Event of Default which is not a Subject Event of Default (each, an “Additional Default”).  For purposes of this Agreement, any failure by Borrowers during the Forbearance Period to comply with the Fixed Charge Coverage Ratio covenant as required pursuant to Section 7.1 of the Credit Agreement shall not constitute an Additional Default and the requirement of compliance with the Fixed Charge Coverage Ratio covenant under the Credit Agreement is suspended during the Forbearance Period.  A default or failure to comply with this Agreement shall constitute an Additional Default.  Upon the expiration or termination of the Forbearance Period, Lender’s forbearance shall automatically terminate and Lender shall be entitled to exercise any and all of its rights and remedies under this Agreement, the Credit Agreement and the Loan Documents without further notice.  Borrowers hereby agree that Lender shall have no obligation to extend the Forbearance Period; provided, however, that Borrowers and Lender may extend such Forbearance Period by express written agreement.
 3.                  Default Interest.  During the Forbearance Period and while any Event of Default remains ongoing and uncured, in accordance with Section 3.6 of the Credit Agreement, the Applicable Rate of interest with respect to the Obligations shall accrue at the Default Rate.
 4.                  Borrowing Base Reserve.  During the Forbearance Period (and thereafter in Lender’s sole discretion), the Lender shall maintain a Borrowing Base reserve of not less than $300,000.00, which reserve shall not be reduced as a result of the consummation or closing of either or both of the Equity Raises notwithstanding that any portion of such reserve may constitute the Equity Raise Reserve.
 5.                  No Payments of Subordinated Debt.  Borrowers shall be permitted to make a one-time payment of interest due and owing for the period ending September 30, 2018, to SM Investors L.P. or SM Investors II, L.P. in an amount not to exceed $26,000.  Borrowers shall not otherwise make any payment of principal, interest or any amount or obligation to SM Investors L.P. or SM Investors II, L.P. or any other subordinated creditor until all of the Obligations owing to Lender have been fully and indefeasibly paid and satisfied.
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 6.                  No Waiver.  Nothing contained in this Agreement or any other communication between Lender, Borrowers or any other loan party shall be a waiver of any past, present or future violation, Default or Event of Default of Borrowers under the Credit Agreement or any Loan Document.  Lender hereby expressly reserves any rights, privileges and remedies under the Credit Agreement and each Loan Document that Lender may have with respect to any violation, Default or Event of Default, and any failure by Lender to exercise any right, privilege or remedy as a result of the violations set forth above shall not directly or indirectly in any way whatsoever either (i) impair, prejudice or otherwise adversely affect the rights of Lender, except as set forth herein, at any time to exercise any right, privilege or remedy in connection with the Credit Agreement or any Loan Document, (ii) amend or alter any provision of the Credit Agreement or any Loan Document or any other contract or instrument or (iii) constitute any course of dealing or other basis for altering any obligation of Borrowers or any rights, privilege or remedy of Lender under the Credit Agreement or any Loan Document or any other contract or instrument.  Nothing in this Agreement shall be construed to be a consent by Lender to any prior, existing or future violations of the Credit Agreement or any Loan Document.
 7.                  Future Compliance.  Borrowers are hereby notified that irrespective of (i) any waivers or consents previously granted by Lender regarding the Credit Agreement and the Loan Documents, (ii) any previous failures or delays of Lender in exercising any right, power or privilege under the Credit Agreement or the Loan Documents or (iii) any previous failures or delays of Lender in the monitoring or in the requiring of compliance by Borrowers with the duties, obligations and agreements of Borrowers in the Credit Agreement and the Loan Documents, Borrowers will be expected to and required to comply strictly with their duties, obligations and agreements under the Credit Agreement and the Loan Documents.
 8.                  Representations and Warranties.  Each Borrower represents and warrants to Lender that, before and after giving effect to this Agreement:
 (a)                All warranties and representations made to Lender under the Credit Agreement and the Loan Documents are true and correct on and as of the date hereof and on and as of the date of execution hereof as though made on and as of each such date (except to the extent such representations and warranties expressly relate to an earlier date).
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 (b)               The execution, delivery and performance by each Credit Party of this Agreement and any assignment, instrument, document, or agreement executed and delivered in connection herewith and the consummation of the transactions contemplated hereby and thereby (i) have been duly authorized by all requisite action of the appropriate Credit Party and have been duly executed and delivered by or on behalf of such Credit Party; (ii) do not violate any provisions of (A) applicable law, statute, rule, regulation, ordinance or tariff, (B) any order of any Governmental Authority binding on any Credit Party or any of the Credit Parties’ respective properties the effect of which would reasonably be expected to have a Material Adverse Effect, or (C) the certificate of incorporation or bylaws (or any other equivalent governing agreement or document) of each Credit Party, or any agreement between any Credit Party and its shareholders, members, partners or equity owners or among any such shareholders, members, partners or equity owners; (iii) are not in conflict with, and do not result in a breach or default of or constitute an Event of Default, or an event, fact, condition, breach, Default or Event of Default under, any indenture, agreement or other instrument to which any Credit Party is a party, or by which the properties or assets of any Credit Party are bound, the effect of which would reasonably be expected to have a Material Adverse Effect; (iv) except as set forth herein, will not result in the creation or imposition of any Lien of any nature upon any of the properties or assets of any Credit Party, and (v) do not require the consent, approval or authorization of, or filing, registration or qualification with, any Governmental Authority or Credit Party unless otherwise obtained.
 (c)                This Agreement and any assignment, instrument, document, or agreement executed and delivered in connection herewith constitutes the legal, valid and binding obligation of each respective Credit Party, enforceable against such Credit Party in accordance with its respective terms.
 (d)               Except for the Subject Event of Default, no Default or Event of Default has occurred and is continuing or would exist under the Credit Agreement or any of the Loan Documents, before and after giving effect to this Agreement.
 9.                  Conditions Precedent.  The forbearance set forth in Section 2 hereof shall be effective on the date hereof upon completion of the following conditions precedent (with all documents to be in form and substance satisfactory to Lender and Lender’s counsel):
 (a)                Lender shall have received this Agreement duly executed by Borrowers;
 (b)               Payment of all fees, charges and expenses payable to Lender on or prior to the date hereof, if any, and a forbearance fee which Borrowers hereby agree Lender has fully earned as of the date hereof in an amount equal to Twenty Two Thousand Five Hundred Dollars ($22,500.00); 
 (c)                The First Equity Raise shall have been consummated and shall have closed;
 (d)               All corporate, limited partnership and limited liability company proceedings taken in connection with the transactions contemplated by this Agreement and all documents, instruments and other legal matters incident thereto shall be satisfactory to Lender; and
 (e)                Borrowers shall have executed and/or delivered such additional documents, instruments and agreements as requested by Lender.
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 10.              Post-Closing Obligations. Borrowers shall comply with each of the following additional covenants and requirements at all times prior to the payment in full of the Obligations, the failure of which would constitute an immediate Event of Default and termination of the forbearance provided for in Section 2 of this Agreement: 
 (a)                On or before January 31, 2019, the Board of Directors of Trans-Lux Corp. shall have approved an amendment to the Certificate of Incorporation of Trans-Lux Corp. and otherwise authorized sufficient additional shares of common stock to permit the Second Equity Raise to be consummated, and shall have provided Lender with evidence of same.
 11.                Miscellaneous.  
 (a)                Ratification.  Borrowers hereby restate, ratify and reaffirm each and every term and condition set forth in the Credit Agreement and the Loan Documents effective as of the date hereof.
 (b)               Release.  By execution of this Agreement, Borrowers acknowledge and confirm that Borrowers do not have any actions, causes of action, damages, claims, obligations, liabilities, costs, expenses and/or demands of any kind whatsoever, at law or in equity, matured or unmatured, vested or contingent arising out of or relating to this Agreement, the Credit Agreement or the other Loan Documents against any Released Party (as defined below), whether asserted or unasserted.  Notwithstanding any other provision of any Loan Document, to the extent that such actions, causes of action, damages, claims, obligations, liabilities, costs, expenses and/or demands may exist, Borrowers voluntarily, knowingly, unconditionally and irrevocably, with specific and express intent, for and on behalf of itself, its managers, members, directors, officers, employees, stockholders, Affiliates, agents, representatives, accountants, attorneys, successors and assigns and their respective Affiliates (collectively, the “Releasing Parties”), hereby fully and completely release and forever discharge Lender, its Affiliates and its and their respective managers, members, officers, employees, Affiliates, agents, representatives, successors, assigns, accountants and attorneys (collectively, the “Indemnified Persons”) and any other Person or insurer which may be responsible or liable for the acts or omissions of any of the Indemnified Persons, or who may be liable for the injury or damage resulting therefrom (collectively, with the Indemnified Persons, the “Released Parties”), of and from any and all actions, causes of action, damages, claims, obligations, liabilities, costs, expenses and demands of any kind whatsoever, at law or in equity, matured or unmatured, vested or contingent, that any of the Releasing Parties has against any of the Released Parties, arising out of or relating to this Agreement, the Credit Agreement, the other Loan Documents, or any Transaction, which Releasing Parties ever had or now have against any Released Party, including, without limitation, any presently existing claim or defense whether or not presently suspected, contemplated or anticipated.
 (c)                Security Interest.  Borrowers hereby confirm and agree that all security interests and liens granted to Lender continue in full force and effect and shall continue to secure the Obligations.  All Collateral remains free and clear of any liens other than liens in favor of Lender and Permitted Liens.  Nothing herein contained is intended to in any way impair or limit the validity, priority and extent of Lender’s existing security interest in and liens upon the Collateral.
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 (d)               Costs and Expenses.  Borrowers agree to pay on demand all costs and expenses of Lender and/or its Affiliates in connection with the preparation, execution, delivery and enforcement of this Agreement and all other agreements and instruments executed in connection herewith, including, without limitation, reasonable attorneys’ fees and expenses of Lender’s counsel.
 (e)                GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ITS CHOICE OF LAW PROVISIONS.
 (f)                Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, and such counterparts together shall constitute one and the same respective agreement.  Signatures sent by facsimile or electronic mail shall be deemed originals for all purposes and shall bind the parties hereto.
 (g)               Loan Document.  This Agreement and any assignment, instrument, document, or agreement executed and delivered in connection with or pursuant to this Agreement shall be deemed to be a “Loan Document” under and as defined in the Credit Agreement for all purposes.
  
  
 [Signature Pages Follow.]
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  IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Agreement as of the date first hereinabove written.
  
 	 BORROWER:
	 	 TRANS-LUX CORPORATION, a Delaware corporation

	 	 	 TRANS-LUX DISPLAY CORPORATION, a Delaware corporation

	 	 	 TRANS-LUX MIDWEST CORPORATION, an Iowa corporation

	 	 	 TRANS-LUX ENERGY CORPORATION, a Connecticut corporation

	 	 	
	 	 	 
	 	 By:
	 /s/ Todd Dupee

	 	 	 Name:  Todd Dupee

	 	 	 Title: Senior Vice President and Chief Accounting Officer

	 	 	
	 	 	 As Senior Vice President and Chief Accounting Officer of each of the above entities and, in such capacity, intending by this signature to legally bind each of the above entities

  
 Signature Page to Forbearance Agreement to Credit and Security Agreement
  
 7
  
  
 
  

  
 	 LENDER:
	 	 CNH FINANCE FUND I, L.P.,

	 	 	 a Delaware limited partnership

	 	 	
	  
	 	 
	 	 	
	 	 By:
	 /s/ Timothy Peters 

	 	 	 Name: Timothy Peters 

	 	 	 Title:  Authorized Signatory

  
  
 Signature Page to Forbearance Agreement to Credit and Security Agreement
 8

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