Document:

Exhibt 10.1

    AGREEMENT made as of the 1st day of April 2006 by and between TRANS-LUX
CORPORATION, a Delaware corporation having an office at 110 Richards Avenue,
Norwalk, Connecticut 06856-5090 (hereinafter called "Employer"), and KARL
HIRSCHAUER residing at 10 Douglas Lane, New Fairfield, CT 06812 (hereinafter
called, "Employee").

                              W I T N E S S E T H:

    1.  Employer hereby employs Employee, and Employee hereby accepts
employment, upon the terms and conditions hereinafter set forth.

    2.  (a) The term ("Term") of the Agreement shall be the two year period
commencing as of April 1, 2006 and terminating March 31, 2008.

        (b) In the event that Employee remains or continues in the employ of
Employer after the Term, such employment, in the absence of a further written
agreement, shall be on an at-will basis, terminable by either party hereto on
thirty (30) days' notice to the other and, upon the 30th day following such
notice the employment of Employee shall terminate.

        (c) Upon expiration of the Term of this Agreement, neither party shall
have any further obligations or liabilities to the other except as otherwise
specifically provided in this Agreement.

    3.  Employee shall be employed in an executive and/or engineering capacity
of Employer (and such of its affiliates, divisions and subsidiaries as Employer
shall designate).  Employer shall use its best efforts to cause Employee to be
elected and continue to be elected a Senior Vice President of Employer during
the Term of this Agreement.  The precise services of Employee may be designated
or assigned from time to time at the direction of the Board of Directors, the
Chairman of the Board, or President, and all of the services to be rendered
hereunder by Employee shall at all times be subject to the control, direction
and supervision of the Board of Directors of Employer, to which Employee does
hereby agree to be bound.  Employee shall devote his entire time, attention and
energies during usual business hours (subject to Employer's policy with respect
to holidays and illnesses for comparable executives of Employer) to the business
and affairs of Employer, its affiliates, divisions and subsidiaries as Employer
shall from time to time direct.  Employee further agrees during the Term of this
Agreement to serve as an officer or director of Employer or of any affiliate or
subsidiary of Employer as Employer may request, and if Employee serves as such
officer or a director he will do so without additional compensation, other than
director's fees or honoraria, if any.

    During the Term of this Agreement and during any subsequent employment of
Employee by Employer, Employee shall use his best efforts, skills and abilities
in the performance of his services hereunder and to promote the interests of
Employer, its affiliates, divisions and subsidiaries.  Employee shall not,
during the Term and during any subsequent employment of Employee by Employer, be
engaged in any other business activity, whether or not such business activity is
pursued for gain, profit or other pecuniary advantage.  The foregoing shall not
be construed as preventing Employee from investing his assets in such form or
manner as will not require any services on the part of Employee in the operation
of the affairs of the companies in which such investments are made, provided,
however, that Employee shall not, either directly or indirectly, be a director
of or make any investments in any company or companies which are engaged in
businesses competitive with those conducted by Employer or by any of its
subsidiaries or affiliates except where such investments are in stock of a
company listed on a national securities exchange, and such stock of Employee
does not exceed one percent (1%) of the outstanding shares of stock of such
listed company.  Employee shall not at any time during or after the Term of this
Agreement use (except on behalf of Employer) divulge, furnish or make accessible
to any third person or organization any confidential information concerning
Employer or any of its subsidiaries or affiliates or the businesses of any of
the foregoing including, without limitation, inventions, confidential methods of
operations and organization, confidential sources of supply, identity of
employees, customer 1ists and confidential financial information.

    4.  (a) For all services rendered by Employee during the Term of this
Agreement, Employer shall pay Employee a salary at the rate of ONE HUNDRED SIXTY
THOUSAND DOLLARS ($160,000) per annum during the period April l, 2006, to June
30, 2006; at the rate of ONE HUNDRED SIXTY-FOUR THOUSAND DOLLARS ($164,000) per
annum during the period July 1, 2006 to March 31, 2007; at the rate of ONE
HUNDRED SIXTY-EIGHT THOUSAND DOLLARS ($l68,000) per annum during the period
April 1, 2007 to March 31, 2008.  Such salary shall be payable weekly, or
monthly, or in accordance with the payroll practices of Employer for its
executives.  The Employee shall also be entitled to all rights and benefits for
which he shall be eligible under any stock option plan, bonus, participation or
extra compensation plans, pensions, group insurance or other benefits which
Employer presently provides, or may provide for him and for its employees
generally.  This Agreement shall not be deemed abrogated or terminated if
Employer, in its discretion, shall determine to increase the compensation of
Employee for any period of time, or if the Employee shall accept such increase.
All payments under this Agreement are in United States dollars unless otherwise
specified.

        (b) Employer may make appropriate deductions from the said payments
required to be made in this Section 4 to Employee to comply with all
governmental withholding requirements.

        (c) If, during the Term of this Agreement and if the Employee is still
in the employ of Employer, Employee shall be prevented from performing or be
unable to perform, or fail to perform, his duties by reason of illness or any
other incapacity for (4) consecutive months (excluding normal vacation time)
during the Term hereof, Employer agrees to pay Employee thereafter during the
Term for the duration of such incapacity 35% of the base salary which Employee
would otherwise have been entitled to receive if not for the illness or other
incapacity.

        (d) The Board upon the recommendation of the Compensation Committee of
the Board shall consider no later than May 31, 2007, 2008, and 2009,
respectively (provided there is no delay in obtaining the financial statements
as provided below, but in no event later than 45 days following receipt thereof)
the grant of a bonus ("Bonus") to Employee based on Employee's performance for
the immediately preceding fiscal year.  Notwithstanding the foregoing, based on
Employer's annual pre-tax consolidated earnings in the applicable Fiscal Year,
Employer shall pay Employee a Bonus at the rate of three-eighths of one percent
(.375%).  for the fiscal years ending December 31, 2006, 2007, and 2008 only
(provided however, the Bonus, if any, for 2008 shall be 25% of the amount for
such year.) The Bonuses shall not exceed $20,000 for any year ($5,000 for
January 1 - March 31, 2008).

    No Bonus shall be payable for any Fiscal Year in which the annual pre-tax
consolidated earnings determined in accordance with Section 4(d) are less than
$500,000.

    There shall be excluded from the calculation of pre-tax consolidated
earnings during the Term of this Agreement (1) the amount by which (x) any item
or items of unusual or extraordinary gain in the aggregate exceeds 20% of the
Employer's net book value as at the end of the immediate preceding fiscal year
or (y) any item of unusual or extraordinary loss in the aggregate exceeds 20% of
the Employer's net book value as at the end of the immediate preceding fiscal
year, in each case in (x) and (y) above as determined in accordance with
generally accepted accounting principles and items of gain and loss shall not be
netted against each other for purpose of the above 20% calculation, or (2) any
contractual Bonuses and/or contractual profit participations accrued or paid to
Employee or other employees.

    Provided Employee is not in default of the Agreement, the Board may, in any
event, even if any of the aforesaid pre-tax consolidated earnings levels are not
exceeded, grant the Employee the aforesaid Bonus or any portion thereof for such
year based on his performance.

    Notwithstanding anything to the contrary contained herein, if Employee is
not in the employ of Employer at the end of any aforesaid 2006 or 2007 fiscal
year or March 31, 2008, no Bonus shall be paid for such fiscal year or 2008, as
the case may be.  In the event of Employee's death on or after January 1 of 2007
or 2008 or March 31, 2008, any Bonus to which he is otherwise entitled for the
prior fiscal year or 2008, as the case may be, shall be paid to his widow if she
shall survive him or if she shall predecease him to his surviving issue per
stirpes and not per capita.

    Such pre-tax consolidated earnings shall be fixed and determined by the
independent certified public accountants regularly employed by Employer.  Such
independent certified public accountants, in ascertaining such pre-tax
consolidated earnings, shall apply all accounting practices and procedures
heretofore applied by Employer's independent certified public accountants in
arriving at such annual pre-tax consolidated earnings as disclosed in Employer's
annual statement for that year of profit and loss released to its stockholders.
The determination by such independent certified public accountants shall be
final, absolute and controlling upon the parties.  Notwithstanding the
foregoing, any interest expense savings resulting from conversion of the
Employer's 7 1/2% Convertible Subordinated Notes due 2006 and 8 1/4% Limited
Convertible Senor Subordinated Notes due 2012 may be included or excluded in
such calculation by the Board in its sole discretion.  Payment of such amount,
if any is due, shall be made for each year by Employer to Employee within sixty
(60) days after which such accountant shall have furnished such statement to
Employer disclosing Employer's pre-tax consolidated earnings for each of the
years 2006, 2007 and 2008.  Employer undertakes to use reasonable efforts to
cause said accountants to prepare and furnish such statements within one hundred
thirty (130) days from the close of each such fiscal year and to cause said
independent certified public accountants, concomitantly with delivery of such
statement by accountants to it, to deliver a copy of such statement to Employee.
The Employer shall not have any liability to Employee arising out of any delays
with respect to the foregoing.

        (e) In the event Employee dies during the Term of this Agreement while
the Employee is still in the Employ of Employer, Employer shall pay to
Employee's widow or his surviving issue, as the case may be, for the balance of
the Term of the Agreement, or eighteen (18) months, whichever is less, annual
death benefits payable weekly or in accordance with Employer's payroll practices
in an amount equal to 35% of Employee's then annual base salary rate.

    5.  During the Term of this Agreement, Employer will reimburse Employee for
traveling or other out-of-pocket expenses and disbursements incurred by Employee
with Employer's approval in furtherance of the businesses of Employer, its
affiliates, divisions or subsidiaries, upon presentation of such supporting
information as Employer may from time to time request.

    6.  During the Term of this Agreement, Employee shall be entitled to a
vacation during the usual vacation period of Employer in accordance with such
vacation schedules as Employer may prescribe.

    7.  Both parties recognize that the services to be rendered by Employee
pursuant to this Agreement are extraordinary and unique.  During the Term of
this Agreement, and during any subsequent employment of Employee by Employer,
Employee shall not, directly or indirectly, enter into the employ of or render
any services to any person, partnership, association or corporation engaged in a
business or businesses in anyway, directly or indirectly, competitive to those
now or hereafter engaged in by Employer or by any of its subsidiaries during the
Term of this Agreement and during any subsequent employment of Employee by
Employer and Employee shall not engage in any such business, directly or
indirectly on his own account and, except as permitted by Section 3 of this
Agreement, Employee shall not become interested in any such business, directly
or indirectly, as an individual, partner, shareholder, director, officer,
principal, agent, employee, trustee, consultant, or in any other relationship or
capacity.  For a period of two (2) years following termination of employment for
any reason, Employee shall not directly or indirectly (i) engage or otherwise be
involved in the recruitment or employment of any Employer employee or (ii)
solicit or render any service directly or indirectly to any other person or
entity with regard to soliciting any customer of the Employer during the two (2)
year period prior to termination of employment with respect to products or
services competitive with products or services of Employer.  Employee shall at
no time during or after employment disclose to any person, other than Employer,
or otherwise use any information of or regarding Employer except on behalf of
Employer, nor communicate, publish, or otherwise transmit, in any manner
whatsoever, untrue information or negative, competitive, personal or other
information or comments regarding Employer.  In addition, Employee agrees that
all lists, materials, books, files, reports, correspondence, records and other
documents and information ("Employer Materials") used, prepared or made
available to Employee, shall be and shall remain the property of Employer.  Upon
the termination of employment of Employee or the expiration of this Agreement,
whichever is earlier, all Employer Materials shall be immediately returned to
Trans-Lux Corporation, and Employee shall not make or retain any copies thereof,
nor disclose or otherwise use any information relating to said Employer
Materials to any other party.  As used herein the term Employer shall include
Employer, Employer's subsidiaries and affiliates, and any individuals employed
or formerly employed by any of them.  Employer shall be entitled, if it so
elects, to institute and prosecute proceedings in any court of competent
jurisdiction, either in law or in equity, to obtain damages for any breach of
this Agreement, or to enjoin Employee from any breach of this Agreement, but
nothing herein contained shall be construed to prevent Employer from pursuing
such other remedies as Employer may elect to invoke.  In addition to the
obligations of the Employee contained in this Agreement, Employee agrees to be
bound by the provisions contained in Exhibits A and B to this Agreement.

    8.  In the event any provision of Section 7 of this Agreement shall be held
invalid or unenforceable by reason of the geographic or business scope or the
duration thereof, such invalidity or unenforceability shall attach only to such
provision and shall not affect or render invalid or unenforceable any other
provision of this Agreement, and this Agreement shall be construed as if the
geographic or business scope or the duration of such provision had been more
narrowly drawn so as not to be invalid or unenforceable.

    9.  The waiver by Employer of a breach of any provision of this Agreement by
Employee shall not operate or be construed as a waiver of any subsequent breach
by Employee.

    10.  Any notice required or permitted to be given under this Agreement shall
be sufficient if in writing and served personally or sent by United States
certified or registered mail, return receipt requested, or overnight courier
such as Federal Express or Airborne to his address as stated on Employer's
records, in the case of Employee, or to the office of Trans-Lux Corporation,
attention of the President, 110 Richards Avenue, Norwalk, Connecticut
06856-5090, in the case of Employer, or such other address as designated in
writing by the parties.

    11.  This Agreement shall be construed in accordance with the laws of the
State of New York.

    12.  This instrument contains the entire agreement between the parties and
supersedes as of April 1, 2006 the Employment Agreement between the parties
dated April 2, 2003, effective January 1, 2003.  It may not be changed,
modified, extended or renewed orally except by an agreement in writing signed by
the party against whom enforcement of any waiver, change, modification,
discharge or extension is sought.

    IN WITNESS WHEREOF, this Agreement has been duly executed on the day and
year above written.

                                       TRANS-LUX CORPORATION

                                       By /s/ Michael R. Mulcahy
                                         _________________________
                                              President

                                       /s/ Karl Hirschauer
                                       ___________________________
                                            Karl Hirschauer

                                  EXHIBIT A TO
                              EMPLOYMENT AGREEMENT
                         EFFECTIVE AS OF APRIL 1, 2006

                       ADDITIONAL OBLIGATIONS OF EMPLOYEE

    1.  All inventions, developments and improvements conceived or made by
Employee, solely or jointly with others, during the period of Employee's
employment by the Employer, whether or not conceived during business hours,
which pertain to any product, goods, apparatus, equipment, systems, methods or
processes made, used or sold by the Employer, or with regard to which the
Employer is conducting research or development work, either alone or in
cooperation with others, shall be a work made for hire, under the supervision of
the Employer, and shall be the property of the Employer, whether patentable or
not.

    2.  Employee agrees to promptly and voluntarily disclose to the Employer all
such inventions, developments, and improvements conceived or made by Employee
during the period of Employee's employment, and one year thereafter, and to
sign, when requested by Employer any United States and foreign patent
applications or any divisional, continuing, renewal or reissue applications
pertaining thereto, and to provide the Employer or its agents or attorneys with
all reasonable assistance in the preparation and presentation of patent or
copyright applications, drawings, specifications and the like, provided that all
fees pertaining to such applications are to be paid by the Employer.  Employee
also agree to assign to the Employer all such inventions, developments and
improvements and any United States and foreign patent applications or
divisional, continuing, renewal or reissue applications pertaining thereto, and
any patent issuing thereon, and Employee agrees to sign any assignments or other
instruments that might, in the opinion of the Employer, be required to carry out
this provision.  Employee will perform Employee's obligations under this
paragraph without requesting or receiving any payment therefore other than
Employee's usual salary from the Employer.

    3.  In any action, claim, or proceeding in which this Agreement or any
provision thereof is in issue, the parties agree that the Employer shall have
the benefit of a prima facie presumption that any invention, development or
improvement as referred to in paragraph 1 which is disclosed or offered to
others, or published or reduced to practice by Employee within a period of one
year after the termination of Employee's employment with Employer, or any such
inventions, developments or improvements disclosed in a patent application filed
by Employee within one year of the termination of Employee's employment by
Employer, was conceived or made during the period of Employee's employment.

    4.  All work done by Employee for the Employer relating in any way to the
conception, design, development, support, maintenance, sales or leasing of
products for the Employer is the property of the Employer and Employee hereby
assigns to the Employer all of Employee's rights therein.  This paragraph
applies to work performed by Employee before and after the signing of this
Agreement.

                                       Trans-Lux Corporation

                                       By: /s/ Michael R. Mulcahy
                                          ________________________
                                              President

                                       /s/ Karl Hirschauer
                                       _________________________
                                          Karl HirschauerExhibit 10.2

	  AMENDMENT NO. 1 TO AMENDED AND RESTATED COMMERCIAL LOAN AND
	  -----------------------------------------------------------
			       SECURITY AGREEMENT
			       ------------------

    This AMENDMENT NO. 1 TO AMENDED AND RESTATED COMMERCIAL LOAN AND SECURITY
AGREEMENT (this "Agreement") is made as of the 9th day of May, 2006, by and
among TRANS-LUX CORPORATION, a Delaware corporation, with its chief executive
office and principal place of business located at 110 Richards Avenue, Norwalk,
Connecticut 06854 ("Borrower"), each of the other corporations signatory hereto
as guarantors (collectively, the "Guarantors"), and PEOPLE'S BANK, a Connecticut
chartered banking corporation with an office located at 350 Bedford Street,
Stamford, Connecticut 06901 ("Lender").

				  WITNESSETH:

    WHEREAS, Lender has made certain loans (collectively, the "Loans") to
Borrower pursuant to a certain Amended and Restated Commercial Loan and Security
Agreement dated as of December 23, 2004 (as amended from time to time, the
"LSA");

    WHEREAS, capitalized terms not otherwise defined in this Agreement shall
have the meanings ascribed to them in the LSA;

    WHEREAS, the Guarantors have guaranteed all obligations of the Borrower to
the Lender under the LSA and related Loan Documents pursuant to a certain
Amended and Restated Unlimited Guaranty dated as of December 23, 2004 (as the
same may be amended or reaffirmed from time to time, the "Guaranty Agreement");

    WHEREAS, as security for its obligations to the Lender, including, without
limitation, those arising under the LSA the Borrower has, among other things,
granted to the Lender a lien on and security interest in all of its personal
property assets pursuant to the LSA; and WHEREAS, as security for their
respective obligations to the Lender under the Guaranty Agreement, each Secured
Guarantor has granted to the Lender a lien on and security interest in all if
its personal property assets pursuant to a certain Amended and Restated
Guarantor Security Agreement dated as of December 23, 2004 (the "Guarantor
Security Agreement"); and

    WHEREAS, Borrower and the Guarantors (collectively, the "Obligors") have
requested Lender (i) to retroactively amend certain financial covenants for the
quarters ended December 31, 2005 and March 31, 2006; (ii) to prospectively amend
certain financial covenants for the quarters ending June 30, 2006, September 30,
2006, December 31, 2006 and all quarters thereafter; (iii) to amend the maturity
dates of all Loans to January 1, 2008; (iv) to modify the interest rate
applicable to the Line of Credit Loan as well as certain terms and conditions
relating to advances under said Line of Credit Loan; (v) to amend and restate
the Term Loan Note to reflect the modification of the maturity date applicable
thereto; (vi) to modify covenants relating to the maximum amount of non-
financed capital expenditures; (vii) to clarify that the proceeds of the
Revolving Loans shall not be used to repay Subordinated Debt; and (viii) to add
an additional mandatory prepayment event and a forbearance and amendment fee;
and

<PAGE>

    WHEREAS, Section 10.1 of the LSA provides that no modification or amendment
of the Credit Agreement shall be effective unless the same shall be in writing
and signed by the Lender and Borrower.

    NOW, THEREFORE, in consideration of One Dollar ($1.00) and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Lender and each Obligor agree as follows:

1.  Acknowledgments, Affirmations and Representations and Warranties.

    a.	The Obligors acknowledge, affirm, represent and warrant that:

	 (i) All of the statements contained herein are true and correct and
that each understands that the Lender is relying on the truth and completeness
of such statements to enter into this Agreement.

	 (ii) As of May 1, 2006, the Borrower is legally and validly indebted to
the Lender:  (A) by virtue of the Term Loan in the principal amount of
$8,750,000.00, (B) by virtue of the Revolving Loan in the principal outstanding
amount of $850,000.00, (C) by virtue of the Line of Credit Loan in the principal
outstanding amount of $0.00, (D) by virtue of the Converted Term Loan in the
principal amount of $0.00, plus interest and fees accrued and accruing on each
of the foregoing and costs and expenses of collection, including without
limitation, attorneys' fees, relating thereto and there is no defense, offset or
counterclaim with respect to any of the foregoing or independent claim or action
against the Lender.

	 (iii) Each Guarantor is legally and validly indebted to the Lender by
virtue of the Guaranty Agreement and there is no defense, offset or counterclaim
with respect thereto or independent claim or action against the Lender.

	 (iv) The resolutions previously adopted by the Board of Directors of
the Borrower and provided to the Lender have not in any way been rescinded or
modified and have been in full force and effect since their adoption to and
including the date hereof and are now in full force and effect, except to the
extent that they have been modified or supplemented to authorize this Agreement
and the documents and transactions described herein.

	 (v) The Borrower has the power and authority to enter into, and has
taken all necessary corporate action to authorize, this Agreement and the
transactions contemplated hereby and thereby.

	 (vi) The resolutions previously adopted by the Board of Directors of
each of the Guarantors and provided to the Lender have not in any way been
rescinded or modified and have been in full force and effect since their
adoption to and including the date hereof and are now in full force and effect,
except to the extent that they have been modified or supplemented to authorize
this Agreement and the documents and transactions described herein.

	 (vii) Each Guarantor has the power and authority to enter into, and has
taken all necessary corporate action to authorize, this Agreement and the
transactions contemplated hereby and thereby.

				      -2-
<PAGE>

	 (viii) All representations, warranties and covenants contained in, and
schedules and exhibits to, the LSA, the Guaranty Agreement and the other Loan
Documents are true and correct in all material respects on and as of the date
hereof, are incorporated herein by reference and are hereby remade except that
Schedule 4.4(c) to the LSA relating to outstanding indebtedness of the Borrower
and the Guarantors is hereby updated and replaced with Schedule 4.4(c) attached
hereto.

	 (ix) After giving effect to the amendments provided herein, no Default
currently exists under the LSA, the Guaranty Agreement or any of the other Loan
Documents and no condition exists which would constitute a default or an event
of default (howsoever defined) under any of the Loan Documents but for the
giving of notice or passage of time, or both.

	 (x) The consummation of the transactions contemplated hereby is not
prevented or limited by, nor does it conflict with or result in a breach of
terms, conditions or provisions of the Borrower's or any Guarantor's Certificate
of Incorporation or Bylaws or any evidence of indebtedness, agreement or
instrument of whatever nature to which the Borrower or any Guarantor is a party
or by which it is bound, does not constitute a default under any of the
foregoing and does not violate any federal, state or local law, regulation or
order or any order of any court or agency which is binding upon the Borrower or
any Guarantor.

2.  Amendment of LSA and other Loan Documents.

    a.	Section 1.1 of the LSA entitled "Defined Terms" is amended as follows:

	 (i) by deleting the definition of "Existing Term Notes" set forth
therein in its entirety and by substituting the following therefor:

	      "Existing Term Note" means that certain Replacement Term Loan
	 Promissory Note of the Borrower payable to the Lender dated December
	 23, 2004 in the original principal amount of $10,000,000.

	 (ii) by deleting the definition of "Maturity Date" set forth therein in
its entirety and by substituting the following therefor:

	      "Maturity Date" means:  (i) with respect to the Term Loan, January
	 1, 2008; (ii) with respect to all outstanding Line of Credit Loans and
	 all Converted Term Loans, January 1, 2008; and (iii) with respect to
	 all outstanding Revolving Loans, January 1, 2008.

	 (iii) by adding the following defined terms in alphabetical order:

	      "Additional Mandatory Prepayment Event" shall have the meaning set
	 forth in Section 2.19A hereof.

	      "Forbearance and Amendment Fee" shall mean the fee to be paid by
	 the Borrower to the Lender in consideration of the amendments and
	 waivers granted by the Lender to the Borrower and the Guarantors as set
	 forth in that certain Amendment No. 1 to Amended and Restated
	 Commercial Loan and Security Agreement among the Borrower, the
	 Guarantors

				      -3-
<PAGE>

	 and the Lender dated as of May 9, 2006 which Forbearance and Amendment
	 Fee shall be paid as follows:	(i) $125,000, if there is an Additional
	 Mandatory Prepayment Event on or before October 1, 2006, (ii) $250,000,
	 if there is an Additional Mandatory Prepayment Event after October 1,
	 2006 but on or before December 31, 2006, and (iii) $350,000, if there
	 is an Additional Mandatory Prepayment Event after December 31, 2006.

	      "Routine Asset Transfer" means the transfer of assets of the
	 Borrower and/or any Guarantor which are permitted under Section 6.6
	 hereof.

    b.	Section 2.2 of the LSA is hereby entitled "Term Loan" is hereby amended
as follows:

	(i) by deleting Section 2.2(a) in its entirety and by substituting the
following therefor:

	      "(a) The Lender extended to the Borrower a term loan in the
original principal amount of $10,000,000 on December 23, 2004 (the "Term
Loan") which Term Loan has an outstanding principal balance of $8,750,000.00 as
of May 9, 2006."

    (ii) by deleting Section 2.2(b) therein in its entirety and by substituting
the following therefor:

	      "(b) The Term Loan shall be evidenced by, and repaid in accordance
	 with the promissory note of the Borrower, substantially in the form
	 attached hereto as Exhibit B (the "Term Loan Note").  The Term Loan
	 Note issued to Lender shall (i) be executed by the Borrower, (ii) be
	 payable to Lender and be dated as of May 9, 2006, (iii) be in a stated
	 principal amount equal to $8,750,000.00 and be payable as provided in
	 Section 2.2(d), (iv) mature on the Maturity Date of the Term Loan, (v)
	 bear interest as provided in Section 2.5, and (vi) be entitled to the
	 benefits of this Agreement and the other Loan Documents.  The Term Loan
	 Note amends, restates and replaces in its entirety the Existing Term
	 Note provided, however, that the amendment, restatement and replacement
	 of the Existing Term Note shall in no way be construed as a novation of
	 the Borrower's indebtedness evidenced by the Existing Term Note."

    c.	Section 2.3 of the LSA entitled "Line of Credit" is hereby amended as
follows:

	(i) by deleting Section 2.3(d) in its entirety and by substituting the
following therefor:

	      "(d) The Borrower may prepay the Line of Credit, in whole or in
	 part, together with accrued interest to the date of prepayment on the
	 amount prepaid on any Business Day, without any Make-Whole Premium."

	      (ii) by adding the following subsection immediately after Section
	 2.3(e):

				      -4-
<PAGE>

	      "(f) Advances under the Line of Credit Loan shall be subject to
	 the following additional terms and conditions:

	      (i) Simultaneously with the making of each Line of Credit Loan,
	 the Borrower shall pay to the Lender a line of credit advance fee equal
	 to 1.25% of the principal amount of each Line of Credit Loan.

	      (ii) Each Line of Credit Loan shall be in a minimum principal
	 amount of not less than $1,000,000.

	      (iii) Simultaneously with the making of each Line of Credit Loan,
	 the Borrower repay the Subordinated Notes from cash on hand in an
	 amount equal to not less than the principal amount of the Line of
	 Credit Loan then being made.  For purposes hereof, cash on hand shall
	 not include any cash proceeds received from the Line of Credit Loans."

    d.	Section 2.4 of the LSA entitled "Conversion to the Converted Term Loan"
is hereby amended as follows:

	      (i) by deleting Section 2.4(b) in its entirety and by substituting
the following therefor:

	      "(b) The Converted Term Loan shall be evidenced by , and repaid
with interest in accordance with, the promissory note of the Borrower,
substantially in the form of Exhibit D hereto (such promissory note is referred
to herein as the "Converted Term Note").  On the Conversion Date, the Borrower
shall issue the Converted Term Note to the Lender which shall (i) be executed by
the Borrower, (ii) be payable to Lender and be dated the Conversion Date, (iii)
be in a stated principal amount equal to the outstanding principal amount of all
Line of Credit Loans on the Conversion Date, (iv) be payable in quarterly
installments of principal and interest based on a 4-year straight line
amortization schedule with a final payment of all outstanding principal and
interest due on the Maturity Date of the Converted Term Loan, (v) mature on the
Maturity Date of the Converted Term Loan, (vi) bear interest as provided in
Section 2.5, and (vii) be entitled to the benefits of this Agreement and the
other Loan Documents."

	      (ii) by deleting Section 2.4(c) in its entirety and by
	 substituting the following therefor:

	      "(c) The Borrower may prepay the Converted Term Loan, in whole or
	 in part, together with accrued interest to the date of prepayment on
	 the amount prepaid on any Business Day, without any Make-Whole
	 Premium."

    e.	Section 2.5 of the LSA entitled "Interest Provisions" is hereby amended
by deleting Section 2.5(a)(ii) entitled "Line of Credit Loans" in its entirety
and by substituting the following therefor:

				      -5-
<PAGE>

	      (ii) Line of Credit Loans.  Subject to the provisions of Sections
	 2.5(c) or 2.12 hereof, during the period from the date made through and
	 including the date of payment in full, each Line of Credit Loan shall
	 bear interest on the outstanding principal amount thereof at a rate per
	 annum equal to the Base Rate, on a floating basis."

    f.	Section 2.5 of the LSA entitled "Interest Provisions" is hereby further
amended by deleting Section 2.5(a)(iv) entitled "Converted Term Loan" in its
entirety and by substituting the following therefor:

	      "(iv) Converted Term Loan.  Subject to the provisions of Sections
	 2.5(c) or 2.12 hereof, during the period from the date made through and
	 including the date of payment in full, the Converted Term Loan shall
	 bear interest on the outstanding principal amount thereof at a rate per
	 annum equal to the Base Rate, on a floating basis.  Interest payments
	 shall be due and payable in arrears commencing on April 1, 2007 and
	 continuing on the first Business Day of each subsequent fiscal quarter
	 of the Borrower thereafter through and including the Maturity Date of
	 the Converted Term Loan."

    g.	Section 2.15 of the LSA entitled "Use of Proceeds" is hereby deleted in
its entirety and the following is substituted therefor:

	      "Section 2.15 Use of Proceeds.  The proceeds of the Term Loan were
	 used by the Borrower to refinance the term loans replaced by the
	 Existing Term Loans.  The proceeds of the Revolving Loans made
	 hereunder shall be used by the Borrower for itself or for its
	 Subsidiaries to support the Borrower's working capital requirements and
	 trading assets and to purchase equipment but in no event shall the
	 proceeds of any Revolving Loans be used by the Borrower to repay any
	 Subordinated Debt.  The proceeds of the Line of Credit Loans shall be
	 used by the Borrower solely for the purpose of funding the repayment of
	 up to 50% of the Subordinated Notes.  The Letters of Credit shall
	 finance the Borrower's purchase of goods in the ordinary course of its
	 business.  The Borrower will not, directly or indirectly, use any part
	 of the proceeds of any of the Loans, or any Letter of Credit, for the
	 purpose of purchasing or carrying any margin stock within the meaning
	 of Regulation U of the Board of Governors of the Federal Reserve System
	 or to extend credit to any Person for the purpose of purchasing or
	 carrying any such margin stock."

    h.	Article 2 of the LSA is hereby amended by adding the following section
immediately after Section 2.19:

	      "Section 2.19A Additional Mandatory Prepayments.  Except for
	 Routine Asset Transfers, in the event that the Borrower or any Secured
	 Guarantor sells, leases, assigns or otherwise transfers any of its
	 assets other than in the ordinary course of business, then,
	 simultaneously with such sale, lease, assignment or transfer (each such
	 sale, lease, assignment or transfer being referred to herein as an
	 "Additional Mandatory Prepayment Event"):  (a) the Revolving Loan
	 Commitment and the Line of Credit Commitment shall automatically
	 terminate; (b) the obligation of the Lender to issue any Letters of
	 Credit shall automatically and immediately terminate; (c) the Borrower
	 shall immediately prepay all Loans and all other outstanding
	 Obligations; (d) the Borrower shall deposit in an account

				      -6-
<PAGE>

	 with the Lender an amount in cash equal to the Available Amount as of
	 the date of the Additional Mandatory Prepayment Event which amounts
	 shall be held by the Lender as collateral for the payment and
	 performance of all Reimbursement Obligations then arising or which in
	 the future arise for any and all outstanding Letters of Credit and the
	 Lender shall have exclusive dominion and control over such account; and
	 (e) the Borrower shall pay to the Lender the applicable Forbearance and
	 Amendment Fee.

    i.	Article 6 of the LSA is hereby amended by adding the following section
immediately after Section 6.14:

	      "Section 6.15 Limitations on Non-Financed Capital Expenditures.
	 Make Non-Financed Capital Expenditures (as that term is defined in
	 Section 7.5(h) hereof) in excess of $1,000,000 per fiscal quarter of
	 the Borrower commencing with the fiscal quarter of the Borrower ending
	 September 30, 2006."

    j.	Section 7.1 of the LSA entitled "Minimum Fixed Charge Coverage Ratio" is
hereby deleted in its entirety and the following is substituted therefor:

	      "Section 7.1 Minimum Fixed Charge Coverage Ratio.

	      (A) Maintain as of the end of the fiscal quarters of the Borrower
	 ending on each December 31, 2005, March 31, 2006 and June 30, 2006, in
	 each case for the then ended Rolling Period, a ratio of (i) EBITDA for
	 such period minus total Non-Financed Capital Expenditures during such
	 period minus total dividends paid during such period divided by (ii)
	 Current Maturities of Long-Term Debt as of the end of such period plus
	 Interest Expense for such period plus total cash taxes paid for
	 corporate income taxes for such period of not less than 1.10 to 1.00.

	      (B) Maintain as of the end of the fiscal quarter of the Borrower
	 ending on September 30, 2006 and as of the end of each fiscal quarter
	 thereafter, in each case for the then ended Rolling Period, a ratio of
	 (i) EBITDA for such period minus total Non-Financed Capital
	 Expenditures during such period minus total dividends paid during such
	 period divided by (ii) Current Maturities of Long-Term Debt as of the
	 end of such period plus Interest Expense for such period plus total
	 cash taxes paid for corporate income taxes for such period of not less
	 than 1.20 to 1.00."

    k.	Section 7.2 of the LSA entitled "Minimum Tangible Net Worth" is hereby
deleted in its entirety and the following is substituted therefor:

	      "Section 7.2 Minimum Tangible Net Worth.  Maintain at all times on
	 and after December 31, 2005, Tangible Net Worth of not less than
	 $19,000,000."

    l.	Section 7.5 of the LSA entitled "Certain Financial Terms" is hereby
amended as follows:

				      -7-
<PAGE>

	      (i) by deleting the definition of "Capital Expenditures" set forth
in Section 7.5(b) in its entirety and by substituting the following therefor:

		   "(b) "Capital Expenditures" means the difference of:  (i) the
	      gross amounts paid or accrued by the Borrower or any of its
	      Subsidiaries in connection with the purchase or lease by the
	      Borrower or any of its Subsidiaries of Capital Assets that would
	      be required to be capitalized and shown on the balance sheet of
	      such Person in accordance with GAAP; minus (ii) $2,500,000."

	      (ii) by deleting the definition of "Current Maturities of
Long-Term Debt" set forth in Section 7.5(d) in its entirety and by substituting
the following therefor:

		   "(d) "Current Maturities of Long-Term Debt" means, with
	      respect to all Debt which, in accordance with GAAP, may be
	      properly classified as long-term debt:  (i) the portion of such
	      Debt which is due within one (1) year from the date of
	      determination thereof; minus (ii) the portion of such Debt due on
	      December 1, 2006 under the Subordinated Notes."

	      (iii) by deleting the definition of "Non-Financed Capital
Expenditures" set forth in Section 7.5(h) in its entirety and by substituting
the following therefor:

		   "(h) "Non-Financed Capital Expenditures" means those Capital
	      Expenditures which were not financed with the proceeds of the
	      Loans or other Indebtedness permitted hereunder; provided,
	      however, that such Non-Financed Capital Expenditures shall not
	      include Non-Financed Capital Expenditures which the Borrower
	      certifies to the Lender will be financed within 180 days from the
	      date such Non-Financed Capital Expenditure was made; and provided,
	      further, however, that in the event the Capital Expenditure
	      Financing does not occur within the time period provided, said
	      Non-Financed Capital Expenditure shall be included in the
	      definition of Non-Financed Capital Expenditures for purposes of
	      the calculation of the Borrower's Minimum Fixed Charge Coverage
	      Ratio set forth in Section 7.1 and for purposes of determining
	      compliance with Section 6.15 hereof."

    m.	The replacement term loan promissory note attached to the LSA as Exhibit
B is hereby deleted and the Second Replacement Term Loan Promissory Note
attached hereto as Exhibit A is substituted therefor.

    n.	The form of converted term loan promissory note attached to the LSA as
Exhibit D is hereby deleted and the Form of Converted Term Loan Promissory Note
attached hereto as Exhibit B is substituted therefor.

    o.	Any reference in any of the Notes or any of the other Loan Documents to:
(i) the Amended and Restated Commercial Loan and Security Agreement between the
Borrower and the Lender dated as of December 23, 2004 (howsoever defined), shall
be amended to refer to and mean the Amended and Restated Commercial Loan and
Security Agreement between the

				      -8-
<PAGE>

Borrower and the Lender dated as of December 23, 2004, as amended and modified
by this Agreement.

3.  Effect of Amendment; Reaffirmation of Liens and other Obligations.	Lender
and each Obligor hereby agree and acknowledge that except as provided in this
Agreement and the Second Replacement Term Loan Promissory Note, the LSA, the
Guaranty Agreement, the Guarantor Security Agreement and the other Loan
Documents (together with all Schedules and Exhibits attached hereto) remain in
full force and effect and have not been modified or amended in any respect, it
being the intention of Lender and each Obligor that this Agreement and the LSA
be read, construed and interpreted as one and the same instrument.  In addition:
(i) the Borrower acknowledges, affirms and agrees that the Lender's security
interest in the Collateral shall continue to secure any and all of the
Borrower's indebtedness to the Lender, including without limitation, the
indebtedness arising under the LSA, as amended hereby; and (ii) each Guarantor
acknowledges, affirms and agrees that (A) the Obligations of the Borrower to the
Lender which have been guaranteed by such Guarantor include, without limitation
the Loans, as modified hereby; and (B) each Secured Guarantor acknowledges,
affirms and agrees that the Lender's security interest in the Collateral (as
defined in the Guarantor Security Agreement) shall continue to secure the
payment and performance of all of its obligations and liabilities to the Lender
arising under the Guaranty Agreement.

4.  Fees and Expenses.	In addition to any Forbearance and Amendment Fee that
may be due, the Borrower agrees to pay all legal fees and expenses of Lender
incurred in connection with the preparation, negotiation and execution of this
Agreement and the other documents executed and/or delivered in connection
herewith.

5.  Governing Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of Connecticut (except its conflicts of
laws provisions).

6.  Counterparts.  This Agreement may be executed in any number of identical
counterparts, each of which shall be deemed to be an original, and all of which
shall collectively constitute a single agreement, fully binding upon and
enforceable against the parties hereto.

7.  Capitalized Terms.	All capitalized terms not otherwise defined in this
Agreement shall have the meanings ascribed to such terms in the LSA.

8.  Benefit.  This Agreement shall inure to the benefit of and bind the parties
hereto and their respective successors and assigns.

			 [NEXT PAGE IS SIGNATURE PAGE]

				      -9-
<PAGE>

     IN WITNESS WHEREOF, Lender, Borrower and Guarantors have executed this
Agreement as of the date first above written.  WITNESSES:

				       TRANS-LUX CORPORATION

				       By: /s/ Angela D. Toppi
					   -----------------------------------
					   Name:  Angela D. Toppi
					   Its:  Executive Vice President
					   Duly Authorized

				       TRANS-LUX DISPLAY CORPORATION
				       TRANS-LUX MIDWEST CORPORATION
				       TRANS-LUX WEST CORPORATION
				       TRANS-LUX DURANGO CORPORATION
				       TRANS-LUX SERVICE CORPORATION
				       TRANS-LUX FOUR CORNERS CORPORATION
				       TRANS-LUX LOS LUNAS CORPORATION
				       TRANS-LUX MONTEZUMA CORPORATION
				       TRANS-LUX REAL ESTATE CORPORATION
				       TRANS LUX SUMMIT CORPORATION
				       TRANS-LUX TAOS CORPORATION
				       TRANS-LUX VALLEY CORPORATION
				       TRANS-LUX WYOMING CORPORATION
				       TRANS-LUX CASTLE ROCK COPORATION
				       TRANS-LUX COCTEAU CORPORATION
				       TRANS-LUX COLORADO CORPORATION
				       TRANS-LUX DESERT SKY CORPORATION
				       TRANS-LUX DREAMCATCHER CORPORATION
				       TRANS-LUX HIGH FIVE CORPORATION
				       TRANS-LUX LARAMIE CORPORATION
				       TRANS-LUX LOMA CORPORATION
				       TRANS-LUX SKYLINE CORPORATION
				       TRANS-LUX STARLIGHT CORPORATION
				       TRANS-LUX STORYTELLER CORPORATION
				       TRANS-LUX NEW MEXICO CORPORATION
				       TRANS-LUX HOLDING CORPORATION
				       TRANS-LUX CINEMA CONSULTING CORPORATION
				       TRANS-LUX LOVELAND CORPORATION
				       TRANS-LUX MOVIE OPERATIONS CORPORATION
				       TRANS-LUX MULTIMEDIA CORPORATION

				       By: /s/ Angela D. Toppi
					   -----------------------------------
					   Angela D. Toppi
					   Its:  Executive Vice President

				       PEOPLE'S BANK

				       By: /s/ Martin H. Anderson
					   -----------------------------------
					   Name:  Martin H. Anderson
					   Its:  Vice President
					   Duly Authorized

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