Document:

Exhibit 10.2

 Exhibit 10.2
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR APPLICABLE STATE SECURITIES LAWS.  IT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR EVIDENCE REASONABLY SATISFACTORY TO THE MAKER THAT SUCH REGISTRATION IS NOT REQUIRED.

THIS NOTE AND RIGHT TO PAYMENT AND COLLATERAL SECURITY HEREUNDER ARE SUBJECT TO THE SUBORDINATION AND INTERCREDITOR AGREEMENT IN FAVOR OF CNH FINANCE FUND I, L.P. AS MORE FULLY SET FORTH THEREIN AND IN SECTION 5 HEREOF.
 

 SUBORDINATED SECURED PROMISSORY NOTE
 

  	$670,000.00	 June 11, 2018

 TRANS-LUX CORPORATION, a Delaware corporation (together with its successors and assigns, the “Maker”), for value received, hereby promises to pay to SM Investors II, L.P. (together with its successors, transferees and assigns, the “Holder”) the principal sum of Six Hundred Seventy Thousand Dollars ($670,000.00), together with interest (computed on the basis of a 360-day year for the actual number of days elapsed) on the unpaid balance of such principal sum from time to time outstanding (“Interest”) at the Applicable Rate (as defined herein) (or, if applicable, the Past Due Rate as herein defined) until this Subordinated Secured Promissory Note (this “Note”) is paid in full, on the terms and provisions set forth in this Note.  
 All cash payments made in connection with this Note shall be in U.S. dollars in immediately available funds by wire transfer of immediately available funds to an account designated by the Holder by notice to the Maker.
 1.     Security. To secure payment and performance of all Obligations (as defined herein) under this Note, the Maker hereby grants to the Holder the right to obtain a continuing security interest in, a lien upon, and a right of set off against, and hereby assigns to the Holder as security, all personal property, and interests in personal property, of the Maker and its subsidiaries whether now owned or hereafter acquired or existing, and wherever located (together with all other collateral security for the Obligations hereunder at any time granted to or held or acquired by the Holder, collectively, the “Collateral”) upon the request of the Holder.   For so long as this Note is outstanding, Maker shall not, and shall not permit any of its subsidiaries, to, create, incur, assume or suffer to exist any security interest, mortgage, pledge, lien, hypothecate, charge or other encumbrance of any nature whatsoever on any of its assets or properties, including the Collateral, or file or permit the filing of, or permit to remain in effect, any financing statement or other similar notice of any security interest or lien with respect to any such assets or properties, other than (i) security interests and liens in favor of CNH Finance Fund I, L.P. (the “Lender”), (ii) any security interests or liens granted in connection with the a restructuring or refinancing of indebtedness owed to Lender, or (iii) with the written consent of Holder, which shall not be unreasonably withheld or delayed.
 

 
 
2.     Payment of Principal and Interest.
 2.1   Maturity; Payment Obligations Absolute.  The entire principal amount of this Note and all accrued and unpaid interest thereon shall be due and payable on the earlier of (a) June 11, 2020 or (b) the closing date of any public or private offering of equity or debt of the Maker (other than pursuant to Maker’s existing credit facility with CNH Finance Fund I, L.P. or a refinancing thereof) for gross proceeds to Maker of at least $1,000,000 (a “Financing”) (such earlier date, or any other date on which the principal amount of this Note becomes payable in accordance with the terms hereof, by acceleration or otherwise, the “Maturity Date”).  No provision of this Note shall alter or impair the Obligations of the Maker, which are absolute and unconditional, to pay the principal of and interest on this Note at the place, times and rate, and in the currency, herein prescribed. 
 2.2   Payments of Interest.  Interest due under this Note shall accrue on a daily basis at the Applicable Rate of interest provided for herein from the date hereof until the principal amount of this Note has been paid in full.  As used herein, the term “Applicable Rate” means 10.0% through December 11, 2018, increasing to 12.0% following December 11, 2018 and through June 11, 2019 if the Maker has not closed a Financing by December 11, 2018, and increasing further to 15% after June 11, 2019 through the Maturity Date if the Maker has not closed a Financing by June 11, 2019.  The amount of interest so accrued shall be paid in arrears by the Maker to the Holder within five business days following the conclusion of each Interest Period (as defined below) in cash.  Any interest that may accrue hereunder after the Maturity Date shall be payable in cash on demand.  As used herein, the term “Interest Period” means each 90-day period, commencing on the date hereof and ending on (and including) the last day of such 90-day period, provided, for clarity, that the initial Interest Period shall commence on the date hereof and end on (and include) September 11, 2018.
 3.     Events of Default.  Each of the following is an “Event of Default”:
 3.1   The Maker shall fail to pay any principal of or Interest on this Note as and when due, only if such failure to pay continues for a period of at least five consecutive business days; or
 3.2   Any order shall be entered in any proceeding against the Maker decreeing the dissolution, liquidation or winding-up thereof; or
 3.3   The Maker shall make a general assignment for the benefit of creditors or shall petition or apply to any tribunal for the appointment of a trustee, custodian, receiver or liquidator for all or any substantial part of its business, estate or assets or shall commence any proceeding under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect, which is not abandoned, dismissed, or vacated within 30 days of the commencement of such proceeding; or

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 3.4   Any such petition or application shall be filed or any such proceeding shall be commenced against the Maker and the Maker, by any act or omission, shall indicate approval thereof, consent thereto or acquiescence therein, or an order shall be entered appointing a trustee, custodian, receiver or liquidator of all or any substantial part of the assets of the Maker or granting relief to the Maker or approving the petition in any such proceeding, which is not abandoned, dismissed, or vacated within 30 days of the commencement of such proceeding; or
 3.5   There shall occur the dissolution, liquidation or termination of existence of the Maker or the sale, conveyance, lease or other disposition of all or substantially all of the assets of the Maker; or

 
 3.6   The Maker shall have concealed, removed, or permitted to be concealed or removed, any part of its property, with intent to hinder, delay or defraud its creditors or any of them, or made or suffered a transfer of any of its property which may be fraudulent under any bankruptcy, fraudulent conveyance or similar law; or shall have made any transfer of its property to or for the benefit of a creditor at a time when other creditors similarly situated have not been paid; or shall have suffered or permitted, while insolvent, any creditor to obtain a lien upon any of its property through legal proceedings which is not vacated within 30 days from the date thereof.
 4.     Remedies.  If there shall occur any Event of Default, Holder may, but shall not be required to, do any or all of the following: (a) without notice, declare the principal amount of this Note to be, and thereupon such principal shall forthwith become immediately due and payable, together with all accrued interest thereon, without notice of acceleration or of intention to accelerate, presentment, demand or protest, all of which are hereby expressly waived; (b) declare that any principal amount of this Note that is not paid when due shall bear Interest, from and after the date when due, at the rate that is the sum of the Applicable Rate and two percent (2%) per annum (the “Past Due Rate”); and (c) exercise any other right or remedy granted by this Note or allowed to it by law, including but not limited to, the rights and remedies of a secured party under the applicable Uniform Commercial Code.  Each and every right hereby granted to the Holder or allowed to it by law or this Note shall be cumulative and not exclusive with respect to one another, and may be exercised by the Holder at any time from time to time and as often as may be necessary.  The Holder shall have at any time in its discretion the right to enforce collection and payment or liquidation of any of the Collateral by appropriate action or proceedings, and the net amounts received therefrom, after deducting all costs and expenses incurred in connection therewith, shall be applied on account of this Note, all without requirement of prior notice to the Maker. The Holder shall not be bound to take any steps necessary to preserve any rights in the Collateral against prior parties, which the Maker hereby assumes to do. If an attorney is employed to enforce or collect this Note, the Maker agrees to pay the Holder’s reasonable attorneys fees in connection therewith.  The Maker promises to pay all reasonable expenses of any nature as soon as incurred with regard to collection of this Note whether in or out of court and whether incurred before or after this Note shall become due at the Maturity Date or otherwise and costs which the Holder may deem necessary or proper in connection with the satisfaction of the indebtedness or realization upon the Collateral.

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 5.     Subordination.  This Note (and each provision hereof) is subject in all respects to the Subordination and Intercreditor Agreement, dated as of the date hereof (as amended from time to time, the “Subordination Agreement”), by and among the Maker, the Holder and CNH Finance Fund I, L.P. (the “Lender”).  The Maker agrees, and the Holder by accepting this Note has agreed, that the indebtedness evidenced by this Note and the payment of principal thereof and interest thereon are subordinated in right of payment to the prior payment in full of all existing and future Obligations to Lender (as defined in the Subordination Agreement), and that any security interest and lien securing obligations under this Note is second and subordinate to the security interests and liens securing the Obligations to Lender.
 6.     Warrant.  In connection with the issuance and delivery of this Note to the Holder, the Maker shall also issue and deliver to the Holder a warrant for the purchase of 167,500 shares of Maker common stock at an exercise price of $0.01 per share and which will expire on the third anniversary of the date of issuance. 
 7.     Use of Proceeds. The Maker shall only use the funds provided pursuant to this Note for Maker’s working capital requirements, general corporate purposes and the items set forth on Schedule I hereto.  
 8.     WAIVER OF JURY TRIAL.  THE MAKER HEREBY INTENTIONALLY, KNOWINGLY, VOLUNTARILY AND EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY ON ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (1) ARISING UNDER THIS NOTE OR (2) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE MAKER AND THE HOLDER WITH RESPECT TO THIS NOTE, OR THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER IN CONTRACT OR TORT OR OTHERWISE, AND HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT THIS ORIGINAL NOTE OR A COPY THEREOF MAY BE FILED WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE MAKER TO THE WAIVER OF RIGHT TO A TRIAL BY JURY.

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 9.    Consent to Jurisdiction.  The Maker hereby consents to the jurisdiction of any state or federal court located in the County of New York, State of New York, and, to the extent permitted by applicable law, waives any objection based on venue or forum non conveniens with respect to any action instituted in any such court and agrees that process in any such action will be sufficient if served on the Maker by certified mail, return receipt requested or in any manner provided by law. Notwithstanding the foregoing, the holder of this Note shall have the right to bring any action or proceeding against the Maker or Maker’s property in the courts of any other jurisdiction such holder deems necessary or appropriate in order to enforce the obligations of the Maker under this Note.  

 10.   Choice of Law.  This Note shall be deemed to have been made and delivered in the State of New York and the rights and obligations of the Holder and the Maker under this Note shall be determined in accordance with the laws of the State of New York, without regard to the conflict of laws principles thereof other than mandatory provisions of law.
 11.   Assignment.  This Note shall be binding upon the Maker and its successors and assigns and the terms hereof shall inure to the benefit of the Holder and its successors and assigns including subsequent holders hereof (collectively, “Assignees”), except that the Maker may not assign or transfer any of its rights or obligations under this Note without the prior written consent of the Holder (which consent shall be in the sole and absolute discretion of the Holder).  The term “Holder” as used in this Note shall be deemed to include the Holder and its Assignees.  The Holder shall, upon notice to the Maker, have the unrestricted right at any time or from time to time, and without the Maker’s consent, to assign all or any portion of its rights and obligations hereunder to any other person, which shall thereupon become vested with all the powers and rights above given to the Holder in respect thereof; provided, however, that any such assignment or transfer of this Note shall be made in accordance with all applicable securities laws, including but not limited to the Act.  The Maker agrees that it shall execute, or cause to be executed, such documents, including without limitation, amendments to this Note and to any other documents, instruments and agreements executed in connection herewith as the Holder shall reasonably deem necessary to effect the foregoing.  

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 12.   Notices, Etc.  Any notice or other communication provided for herein or given hereunder to a party hereto must be in writing, and (a) sent by facsimile transmission, (b) electronic mail, (c) delivered in person, (d) mailed by first class registered or certified mail, postage prepaid, or (e) sent by Federal Express or other overnight courier of national reputation, addressed as follows (and, in the case of notice or other communication to a successor holder of this Note, to such address as such holder may specify by notice in the manner set forth herein): .
 
If to the Holder:

SM Investrors II, L.P.
c/o S. Muoio & Co. LLC
509 Madison Ave., suite 406
New York, New York 10022
Fax: (212) 297-2550
Attention: Salvatore Muoio

If to the Maker:

Trans-Lux Corporation
135 East 57th Street, 14th Floor
New York NY 10022
Attention:  Todd Dupee, Interim Chief Accounting Officer, Vice President and Controller

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 13.    Miscellaneous.  This Note contains the entire agreement among the parties hereto relating to the subject matter hereof.  The Maker expressly acknowledges that the Holder has not made and the Maker is not relying upon any oral representations, agreements or commitments of the Holder or any officer, employee, agent or representative thereof.  No change, modification, termination, waiver, or discharge, in whole or in part, of this Note shall be effective unless in writing and signed by the party against which such change, modification, termination, waiver, or discharge is sought to be enforced.  The Maker hereby (a) waives presentment, demand for payment, protest, notice of protest, notice of dishonor, and any and all other notices or demands in connection with the delivery, acceptance, performance, default, or enforcement of this Note, (b) consents to any and all delays, extensions of time and renewals in connection herewith and as to any available security, (c) consents to any waivers or modifications that may be granted or consented to by the Holder with regard to the time of payment or with respect to any other provisions of this Note and agrees that no such action or failure to act on the part of the Holder shall in any way affect or impair the obligations of the Maker or be construed as a waiver by the Holder of, or otherwise affect, its right to avail itself of any remedy hereunder with the same force and effect as if the Maker had expressly consented to such action or inaction upon the part of the Holder.  Upon receipt of an affidavit of an officer of the Holder as to the loss, theft, destruction or mutilation of this Note or any other security document which is not of public record, and, in the case of any mutilation, upon surrender and cancellation of such Note or other security document, the Maker shall issue, in lieu thereof, a replacement Note or other security document in the same principal amount (as such may be adjusted by payments made pursuant hereto) thereof and otherwise of substantially similar terms.  At any time after the date hereof, at the reasonable request of the Holder, the Maker shall do or cause to be done all such further acts, and shall execute and deliver such further instruments, assignments, transfers, conveyances or documents as may reasonably be required in order to implement and carry out the intent and purpose of this Note.
 [Remainder of page intentionally left blank.]
 

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 Signature Page to Subordinated Secured Promissory Note
Trans-Lux Corporation to SM Investors II, L.P.  
 IN WITNESS WHEREOF, the undersigned Maker has signed this Subordinated Secured Promissory Note on the date first above stated.
 

 TRANS-LUX CORPORATION
 

 

 By:_/s/ Todd Dupee______________
 Name: Todd Dupee
 Title: Interim Chief Accounting Officer, Vice President & Controller
 

 

 
 
 Acknowledged and Agreed:
 

 SM INVESTORS II, L.P.
 

 By:  /s/Salvatore Muoio____________
 Name:  Salvatore Muoio
 Title:
 Managing Member
 S. Muoio & Co. LLC
 General Partner
 

 

 

 

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 SCHEDULE I
 

 1.
 Repayment of a loan for approximately $100,000 made to the Maker by Alberto Shaio, the Maker’s Interim Chief Executive Officer, Chief Operating Officer and Senior Vice President. 
 2.
 Repayment of a loan for approximately $45,000 made to the Maker by Todd Dupee, the Maker’s Interim Chief Accounting Officer, Vice President and Controller.Exhibit 10.3

  
 Exhibit 10.3
 WAIVER, CONSENT AND NINTH AMENDMENT TO
CREDIT AND SECURITY AGREEMENT
 THIS WAIVER, CONSENT AND NINTH AMENDMENT TO CREDIT AND SECURITY AGREEMENT (this “Agreement”), dated as of June 11, 2018, is made and entered into by and among CNH FINANCE FUND I, L.P. formerly known as SCM Specialty Finance Opportunities Fund, L.P., a Delaware limited partnership (“Lender”) and TRANS-LUX CORPORATION, a Delaware corporation (“Trans-Lux”), TRANS-LUX DISPLAY CORPORATION, a Delaware corporation (“TDC”), TRANS-LUX MIDWEST CORPORATION, an Iowa corporation (“TMC”), TRANS-LUX ENERGY CORPORATION, a Connecticut corporation (“TEC”, and together with Trans-Lux, TDC, and TMC, individually and collectively, “Borrower”).
 WHEREAS, Borrower and Lender are parties to that certain Credit and Security Agreement dated as of July 12, 2016 (as the same has been and may from time to time be amended, restated, supplemented or otherwise modified, collectively, the “Credit Agreement”), pursuant to which, subject to the terms and conditions set forth therein, Lender has made certain credit facilities available to Borrower.  The Credit Agreement and all instruments, documents and agreements executed in connection therewith, or related thereto are referred to herein collectively as the “Loan Documents.”
 WHEREAS, Borrower has requested and Lender has agreed to, among other things, (i) waive the Specified Defaults (as defined herein) and (ii) amend the terms and conditions of the Loan Documents, in each case pursuant to the terms and conditions of this Agreement.
 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.  Initially capitalized terms used herein and not defined herein that are defined in the Credit Agreement shall have the meanings assigned to them in the Credit Agreement (as amended hereby).
 2.         Amendments to Credit Agreement.  The Credit Agreement is hereby amended as follows:
 (a)        The following defined term contained in Section 1.2 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
 “Subordination Agreement” means each agreement, including the Closing Date Subordination Agreement, the Penner Subordination Agreement and the Carlisle Subordination Agreement and any other subordination or intercreditor agreement, between Lender and another creditor of Borrowers, as the same may be amended, supplemented, restated or otherwise modified from time to time in accordance with the terms thereof, pursuant to which the Indebtedness owing from any Borrower(s) and/or the Liens securing such Indebtedness granted by any Borrower(s) to such creditor are subordinated to the Obligations and the Liens created under the Loan Documents, the terms and provisions of such Subordination Agreements to have been agreed to by and be acceptable to Lender in the exercise of its sole discretion.
 
 
 
    
 “Subordinated Debt” means any Indebtedness incurred by Borrower(s) with the prior written consent of Lender that is subordinated to the Obligations (and which Indebtedness is identified as being subordinate to the Obligations by Borrower and Bank) pursuant to a Subordination Agreement and Subordination Debt Documents, all of which shall be acceptable to Lender in its sole and absolute discretion, including the Closing Date Subordinated Debt, the Note and Debenture Subordinated Debt, the Penner Subordinated Debt and the Carlisle Subordinated Debt.
 “Subordinated Debt Documents” means (i) all credit and security agreements and any other documents evidencing and/or securing Subordinated Debt, including the Closing Date Subordinated Debt Documents, the Penner Subordinated Debt Documents and the Carlisle Subordinated Debt Documents, and (ii) the Note and Debenture Subordinated Debt Documents, which are subordinated by their terms, all of which documents must be in form and substance acceptable to Lender in its sole discretion.
 (b)        Subsection (ix) of the definition of “Permitted Indebtedness” contained in Section 1.2 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
 (ix) Subordinated Debt;
 (c)        The definition of “Permitted Liens” contained in Section 1.2 of the Credit Agreement is hereby amended by amending and restating subsection (o) thereof in its entirety to read as follows:
 (o) Liens and encumbrances securing Subordinated Debt to the extent such Liens and encumbrances are subject to a Subordination Agreement and are fully subordinated to the Liens and encumbrances securing the Obligations.
 (d)        Section 7.12 of the Credit Agreement is hereby amended by amending and restating subsection (b) therein in its entirety to read as follows:
 (b)         Notwithstanding anything to the contrary contained herein, so long as no Event of Default exists under the Loan Documents, Borrower may make (x) regularly scheduled monthly payments of interest and principal on Subordinated Debt in accordance with the applicable Subordinate Debt Documents, provided that the Borrower shall not make any prepayments of principal or interest on Subordinated Debt.  Notwithstanding the foregoing, Borrower may (x) (i) prepay the principal and/or interest as set forth in the Penner Subordinated Creditor Debt 
 

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 Documents and/or (ii) pay Penner Subordinated Creditor on the Maturity Date (as defined in the Penner Subordinated Creditor Debt Documents) the balloon principal payment of the total outstanding principal amount of the indebtedness in an amount of up to $1,500,000, plus any accrued interest and other note related charges due and owing as set forth in the Penner Subordinated Creditor Debt Documents and (y) (i) prepay the principal and/or interest as set forth in the Carlisle Subordinated Creditor Debt Documents and/or (ii) pay Carlisle Subordinated Creditor on the Maturity Date (as defined in the Carlisle Subordinated Creditor Debt Documents, as in effect on October 10, 2017) the balloon principal payment of the total outstanding principal amount of the indebtedness in an amount of up to $500,000, plus any accrued interest and other note related charges due and owing as set forth in the Carlisle Subordinated Creditor Debt Documents; provided, however, Borrower shall only be permitted to make such payment(s) to the extent Lender has received from Borrower a certificate, in form and substance reasonably satisfactory to Lender, signed on behalf of Borrower by a duly authorized officer of Borrower and dated as of the date of such payment(s) certifying, among other things, (i) that no Event of Default exists under the Loan Documents or would result from the making of such payment(s) and (ii) all supporting documentation.
 (e)        Section 8.1 of the Credit Agreement is hereby amended by amending and restating subsection (n) in its entirety to read as follows:
 (n)
 Any Credit Party is in default, which default is not cured within any applicable grace period or cure period or waived, under any Subordinated Debt Document.
 3.         Consent.  Subject to the terms and conditions hereof, the Lender hereby consents to the incurrence of Subordinated Debt (i) in the amount of $330,000.00 to SM Investors, L.P. (the “SM Investors Debt”) pursuant to the Subordinated Secured Promissory Note dated as of the date hereof (the “SM Investors Note”), made by Trans-Lux, and (i) in the amount of $670,000.00 to SM Investors II, L.P. (collectively with the SM Investors Debt  “SMI Subordinate Debt”) pursuant to the Subordinated Secured Promissory Note dated as of the date hereof (together with the SM Investor Note, the “SMI Subordinated Notes”), made by Trans-Lux.
 4.         Representations and Warranties.  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 accurate in all material respects on and as of the date hereof as if made on and as of the date hereof, before and after giving effect to this Agreement.
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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 Specified Defaults, 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.
 5.         Conditions Precedent.  The amendments set forth in Section 2 and the limited waiver set forth in Section 5 shall be effective 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 Borrower;
 (b)        Lender shall have received executed copies, in form and substance satisfactory to Lender, of the SMI Subordinated Notes and any other agreements, documents and instruments related to the SMI Subordinated Debt, including the Subordination and Intercreditor Agreement by and among the Lender, the SMI Investors and Trans-Lux;
 (c)        Payment to Lender of a default waiver and subordinated debt consent fee in the amount of $6,500.00;
 (d)        Payment of all other fees, charges and expenses payable to Lender on or prior to the date hereof, if any; and
 (e)        Borrower shall have executed and/or delivered such additional documents, instruments and agreements as requested by Lender.
  
 

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 6.         Post-Closing Obligations.  
 (a)        Lender shall have received detailed cash-flow projections, in form and level of detail satisfactory to Lender, for the remainder of 2018 and 2019 on or before June 15, 2018; and
 (b)        Borrower and Lender shall have entered into a tenth amendment to the Credit Agreement, in form and substance satisfactory to Lender in its sole discretion, on or before June 30, 2018, which amendment shall amend and restate certain financial covenants set forth in the Credit Agreement.
 7.         Limited Waiver of Specified Defaults.  Borrower has failed (i) to comply with the Loan Turnover Rate covenant as of the calendar months ending April 30, 2018 as required pursuant to Section 7.1 of the Credit Agreement, (ii) to comply with the Fixed Charge Coverage Ratio covenant as of the calendar months ending April 30, 2018 as required pursuant to Section 7.1 of the Credit Agreement, each of which constitutes an Event of Default under the Credit Agreement (the “Specified Defaults”).  Lender hereby waives compliance by the Borrower with respect to the Specified Defaults only.  The Lender’s waiver of non-compliance with the Credit Agreement is limited to the specific instance of the Specified Defaults and shall not be deemed a waiver of or consent to any other failure to comply with the terms of the Credit Agreement.  Such waiver shall not prejudice or constitute a waiver of any right or remedies which the Lender may have or be entitled to with respect to any other provision of the Credit Agreement.  The waiver is for these particular instances and shall not be construed as a waiver of any other presently existing or future Event of Default.
 8.         Miscellaneous.
 (a)        Reference to the Effect on the Credit Agreement.  Upon the effectiveness of this Agreement, each reference in (i) the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of similar import or (ii) the other Loan Documents to “the Credit Agreement” shall mean and be a reference to the Credit Agreement as amended by this Agreement.
 (b)        Ratification.  Borrower hereby restates, ratifies and reaffirms each and every term and condition set forth in the Credit Agreement and the Loan Documents effective as of the date hereof.
 (c)        Release.  By execution of this Agreement, Borrower acknowledges and confirms that Borrower does 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, Borrower 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, 
 

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 representatives, accountants, attorneys, successors and assigns and their respective Affiliates (collectively, the “Releasing Parties”), hereby fully and completely releases and forever discharges Lender, its Affiliates and its and their respective managers, members, officers, employee, 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 and the other Loan Documents 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.
 (d)        Security Interest.  Borrower hereby confirms and agrees 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.
 (e)        Costs and Expenses.  Borrower agrees to pay on demand all usual and customary 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 (i) reasonable attorneys’ fees and expenses of Lender’s counsel and (ii) all costs and expenses of Lender (including reasonable attorneys’ fees and expenses) in connection with Lender’s counsel performing searches on or about the date hereof in connection with Lender’s rights under Section 2.10(e) of the Credit Agreement.
 (f)        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.
 (g)        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.
 (h)        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.
 

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  [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: Vice President and Controller	 
	 	 	 	
	 	 	As Vice President and Controller 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 Waiver, Consent and Ninth Amendment to Credit and Security Agreement
 
 
 
  	LENDER:                                         	CNH FINANCE FUND I, L.P. formerly known as 
	 	SCM Specialty Finance Opportunities Fund, L.P, a Delaware limited partnership 
	 	 	 	 
	 	By: /s/ Timothy Peters_________________________	 	                                                                                                                              
	 	Name: Timothy Peters	 	
	 	Title: Authorized Signatory	 	

 

 Signature Page to Waiver, Consent and Ninth Amendment to Credit and Security Agreement

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