Document:

exhibit10.1

    

 Exhibit 10.1
 EMPLOYMENT AGREEMENT
 THIS EMPLOYMENT AGREEMENT (hereinafter referred to as this “Agreement” or the “Employment Agreement”) is made as of the 27th day of May, 2014, between TRANS-LUX CORPORATION, a Delaware corporation (the “Company”), and DAVID PAVLIK (the “Employee”). 
 WHEREAS, the parties hereto wish to enter into an employment agreement to employ the Employee as the President of the TL Energy division of the Company (“TL Energy”). 
 NOW, THEREFORE, in consideration of the mutual covenants and representations contained herein, the parties hereto agree as follows:
 1.                  Employment Period.
 The Company will employ the Employee, and the Employee will serve the Company, under the terms of this Agreement for an initial term of two (2) years (the “Term”) commencing on May 28, 2014 (the “Effective Date”).  Notwithstanding the foregoing, the Employee’s employment hereunder may be earlier terminated in accordance with Section 5 below.  The period of time between the commencement and the termination of the Employee’s employment (including the expiration of this Agreement) hereunder shall be referred to herein as the “Employment Period.”  In the event the Employee remains or continues in the employ of the Company after the Term, such employment, in the absence of a further written agreement signed by both parties hereto, shall be on an at-will basis.  Upon expiration of the Term or the earlier termination of Employee in accordance with Section 5 below, neither party shall have any further obligations or liabilities to the other except as otherwise specifically provided herein.
 2.                  Duties and Status.
 2.1.            Position. The Company hereby engages the Employee as the President (“President”) of TL Energy on the terms and conditions set forth in this Agreement.  During the Employment Period, the Employee shall assume management responsibility and authority over all operating functions of TL Energy and, subject to the supervision of the President and CEO of the Company (“CEO”), shall be responsible for: (i) management of the day-to-day operations of TL Energy in a manner consistent with its best interests; (ii) execution of agreements and contracts on behalf of TL Energy in accordance with its certificate of incorporation and by-laws; (iii) the administration of the business of TL Energy; and (iv) the exercise of such powers and the performance such duties as shall be consistent with the Employee’s position as President of TL Energy and as may from time to time be assigned and directed by the CEO.  The Employee shall keep the CEO informed of the affairs of TL Energy.  The Employee agrees to devote all of his business time, efforts and skills to the performance of his duties and responsibilities under this Agreement and render his services exclusively to TL Energy.
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 2.2.            Standard of Care. The Employee agrees to carry out his duties hereunder in a reasonable, diligent, prudent and professional manner consistent with his fiduciary duties as an officer of the Company.
 3.                  Compensation and Benefits.
 3.1.            Salary. During the Employment Period, the Company shall pay to the Employee, as compensation for the performance of his duties and obligations under this Agreement, a base salary at the rate of $125,000 per annum (the “Base Salary”), payable in accordance with the normal payroll practices of the Company.  The amount of the Base Salary shall be increased to $150,000 as of August 1, 2014, and thereafter shall additionally be reviewed by the CEO (and the Compensation Committee of the Board) each year and may be increased during the Employment Period in the Company’s sole discretion.
 3.2.            Net Profit Bonus. On account of each of fiscal years 2014 and 2015, the Employee shall be granted restricted shares of the Company’s common stock, par value $0.001 per share (the “Bonus Shares”) in an amount equal to ten thousand (10,000) Bonus Shares per each one million dollars ($1,000,000) of Net Profit Earnings (as hereinafter defined) (the “Net Profit Bonus”) for such fiscal year, in each case in the form of the restricted stock agreement attached hereto as Exhibit B and subject to the approval by the Board or the Compensation Committee of the Board.  The Bonus Shares covered by such restricted stock agreement shall be represented by certificates registered in the name of the Employee bearing a legend referring to the restrictions on transferability of the shares of Bonus Shares pursuant to this Agreement or any other restrictions that Board of Directors of the Company may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any applicable federal or state securities laws or any stock exchange on which the Bonus Shares are then listed or quoted. As used herein, “Net Profit Earnings” for any fiscal year shall mean the total value of sales by TL Energy during such fiscal year, as determined utilizing generally accepted accounting principles in the United States (“GAAP”), after deduction for special engineering, sales commission, installation charges, shipping and handling charges, and taxes.  Net Profit Earnings shall be paid out within forty-five (45) days of the end of each applicable fiscal year.  The definition of “Net Profit Bonus” as set forth in this Section 3.2 shall be used throughout this Agreement.  
 3.3.            Benefits.  During the Employment Period, the Employee shall be entitled to participate in all of the employee benefit plans of the Company in effect during the Employment Period which are generally available to employees of the Company, subject to and on a basis consistent with, the terms, conditions and overall administration of such plans.  Such benefits include the life insurance plan benefit, the short term disability plan benefit and the long term disability plan benefit, in each case fully paid by the Company on behalf of the Employee.  If, during the course of this Agreement, short term disability benefits, long term disability benefits and/or life insurance benefits are made available to executive employees at a level greater that what was available at the commencement of this Agreement, those more favorable benefits will be made to Employee for the duration of the Agreement.  
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  3.4.            Vacation.  During the Employment Period, the Executive shall be entitled to twenty (20) days of paid vacation each year, to be granted in accordance with the Company’s vacation policy in effect from time to time.  
 3.5.            Business Expenses.  During the Employment Period, the Company shall promptly reimburse the Employee for all appropriately documented, reasonable out-of-pocket business expenses incurred by the Employee in the performance of his duties under this Agreement in accordance with Company policies.  
 4.                    Equity Participation.   
 4.1.            Restricted Stock.  The Company shall grant to Employee on the Effective Date 50,000 shares of the Company’s common stock, par value $0.001 per share (the “Restricted Stock”), pursuant to a restricted stock agreement substantially in the form of Exhibit B hereto, subject to the approval by the Board or the Compensation Committee of the Board (the “Restricted Stock Agreement”).  The Restricted Stock covered by the Restricted Stock Agreement shall be represented by certificates registered in the name of the Employee bearing a legend referring to the restrictions on transferability of the shares of Restricted Stock pursuant to this Agreement or any other restrictions that Board of Directors of the Company may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any applicable federal or state securities laws or any stock exchange on which the Restricted Stock then listed or quoted.
 5.                  Termination of Employment.
 5.1.            Termination for Cause. The Company may terminate the Employee’s employment hereunder for Cause in accordance with Section 8. For purposes of this Agreement, the Company shall have “Cause” to terminate the Employee’s employment hereunder if such termination shall be the result of:
 (i)                 gross negligence or willful misconduct in connection with the Employee’s performance of material duties hereunder;
 (ii)               a default in the performance of his material duties hereunder as determined by the CEO or the Board, or the willful failure or willful nonfeasance by the Employee to substantially perform his duties hereunder; provided that with respect to this clause (ii), the Company must first notify the Employee, in writing, stating with reasonable specificity, the grounds for Cause and, if the Company’s deems that such default is curable, allow the Employee fifteen (15) days after the date of the Company’s notice to substantially cure;
 (iii)             willful conduct in bad faith against the best interests of the Company or any of its affiliates, which conduct could reasonably have a material and adverse impact to the Company or any of its affiliates; 
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 (iv)             any violation of a material policy of the Company and/or Employee’s willful unauthorized disclosure of Confidential Information (as hereinafter defined); 
 (v)               any material failure by the Employee to comply with the Company's written policies or rules, as they may be in effect from time to time during the Employment Period; 
 (vi)             a conviction with respect to a charge of commission of a felony or a crime of moral turpitude; or 
 (vii)           the commission of a material act of embezzlement or conversion of funds of the Company or its affiliates.
 5.2.            Good Reason The Employee may voluntarily terminate his employment hereunder for any reason, including Good Reason in accordance with Section 8.  For purposes of this Agreement, “Good Reason” shall mean:
 (i)                 a material breach of this Agreement by the Company; or
 (ii)               a material adverse change to the Employee’s powers, authorities, and responsibilities without his consent.
 5.3.            Termination Upon Death or Disability. The Employment Period shall be terminated by the death of the Employee.  The Employment Period may be terminated by the Company if, in the reasonable judgment of the Board, the Employee shall be rendered incapable of performing his duties to the Company by reason of any physical or mental impairment that can be expected to result in death or permanent impairment or that can be expected to last for a period of either (i) three (3) or more consecutive months from the first date of the Employee’s absence due to the disability; or (ii) nine (9) months during any twelve (12) month period (a “Disability”).  If the Employment Period is terminated by reason of Disability of the Employee, the Company shall give thirty (30) days’ advance written notice to that effect to the Employee. 
 6.                  Compensation Upon Termination.  
 In consideration of the benefits set forth herein and the Employee’s compliance with the confidentiality, non-solicitation, non-compete and other provisions set forth in Section 7 below and in the Confidentiality Agreement (as hereinafter defined), upon termination of the Employee’s employment with the Company, the Employee shall only be entitled to the following compensation:
 6.1.            For Good Reason. In the event the Employee’s employment by the Company is terminated during the Employment Period as a result of the Employee’s voluntary resignation for Good Reason, then neither the Employee nor the Employee’s beneficiaries or estate will have any further rights or claims against the Company under this Agreement except the right to receive:
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 (i)                 any unpaid Base Salary, any unpaid Net Profit Bonus owing to Employee, and other benefits, in each case earned through the Termination Date; and
 (ii)               reimbursement for any expenses for which the Employee shall not have theretofore been reimbursed as provided in Section 3 hereof.
 The treatment of any outstanding equity awards shall be determined in accordance with the terms of the applicable award agreements.
 6.2.            Termination Due to Death.  In the event that the Employee’s employment with the Company is terminated on account of the Employee’s death, neither the Employee’s beneficiaries nor estate will have any further rights or claims against the Company under this Agreement except the right to receive (i) any unpaid portion of the Base Salary, any unpaid Net Profit Bonus owing to Employee, and other benefits provided for in Section 3, in each case earned through the Termination Date;  and (ii) reimbursement for any expenses for which the Employee shall not have theretofore been reimbursed as provided in Section 3 above.  The treatment of any outstanding equity awards shall be determined in accordance with the terms of the applicable award agreements.
 6.3.            Termination Due to Disability.  In the event that the Employee’s employment with the Company is terminated on account of the Employee’s Disability, neither the Employee nor the Employee’s beneficiaries or estate will have any further rights or claims against the Company under this Agreement except the right to receive (i) any unpaid portion of the Base Salary, any unpaid Net Profit Bonus owing to Employee, and other benefits provided for in Section 3, in each case earned through the Termination Date; and (ii) reimbursement for any expenses for which the Employee shall not have theretofore been reimbursed as provided in Section 3 above.  The treatment of any outstanding equity awards shall be determined in accordance with the terms of the applicable award agreements.
 6.4.            Other Termination Including For Cause or Resignation Without Good Reason.  In the event that the Employee’s employment with the Company is terminated during the Employment Period as a result of a voluntary resignation/termination by the Employee other than for Good Reason or by the Company for Cause, or if this Agreement expires by its terms, neither the Employee nor the Employee’s beneficiaries or estate will have any further rights or claims against the Company under this Agreement except the right to receive (i) any unpaid Base Salary, any unpaid Net Profit Bonus owing to Employee, and other benefits provided for in Section 3, in each case earned through the Termination Date; and (ii) reimbursement for any expenses for which the Employee shall not have theretofore been reimbursed as provided in Section 3 hereof.  No termination under this provision shall limit the Company’s rights under this Agreement at law or in equity.  The treatment of any outstanding equity awards shall be determined in accordance with the terms of the applicable award agreements.
 6.5.            Withholding of Taxes.  All payments required to be made by the Company to the Employee under this Agreement shall be subject to the withholding of such amounts, if any, relating to tax, excise tax and other payroll deductions as the Company may reasonably determine it should withhold pursuant to any applicable law or regulation.
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 6.6.            Return of Records.  Upon any termination of employment, whether automatic, voluntary or involuntary, upon the expiration of the Employment Period, or upon the Company’s request at any time, the Employee shall immediately return to the Company all equipment (including but not limited to any phones and computers), documents and other materials in any medium including but not limited to electronic, which relate in any way to the Company or its affiliates, including notebooks, correspondence, memos, drawings or diagrams, plans, records, physical files, computer files and databases, graphics and formulas, whether prepared by the Employee or by others and whether required by the Employee’s work or for his personal use, whether copies or originals, unless the Employee first obtains the Company’s written consent to keep such records.
 7.                  Restrictive Covenants.
 7.1.            Non-Disparagement.  During the Employment Period and at all times thereafter, neither the Company nor the Employee shall defame, disparage, make negative statements about or act in any manner that is intended to or does damage the goodwill, business or personal reputations of any of the Employee, on the one hand, and the Company and its affiliates, on the other, and their respective shareholders, members, partners, officers, directors, managers, and employees.  This Section 7.1 shall not prohibit the Company or the Employee from responding to any government or administrative inquiries or otherwise cooperating with any governmental, administrative or judicial investigations.
 7.2.            Confidentiality.  The Employee agrees that during his employment with the Company, the Employee will have access to confidential information and/or proprietary information about the Company and/or its clients, including, but not limited to, trade secrets, methods, models, passwords, login account information, access to computer files, financial information and records, forecasts, computer software programs, agreements and/or contracts between the Company and its respective clients, client contracts, prospective contracts, creative policies and ideas, public relations and public affairs campaigns, media materials, budgets, practices, concepts, strategies, methods of operation, technical and scientific information, discoveries, developments, formulas, specifications, know-how, design inventions, marketing and business strategies and financial or business projects, information about or received from clients and other companies with which the Company does business and information (personal, proprietary or otherwise) the Employee learned about any officer, director, shareholder of the Company or any of its affiliates.  The foregoing, together with the information referred to in the Confidentiality Agreement (as hereinafter defined) as confidential information, shall be collectively referred to as “Confidential Information.”  Such Confidential Information is not readily available to the public and accordingly, the Employee agrees that, except as may be required by applicable law, the Employee will not at any time, whether during his employment with the Company or thereafter, disclose to anyone, (other than in furtherance of the business of the Company) any Confidential Information, or utilize such Confidential Information for the Employee’s own benefit, or for the benefit of third parties.  In addition to the other provisions set forth in this Section 7.2, the Employee shall execute the Confidentiality and Proprietary Rights Agreement attached hereto as Exhibit A (the “Confidentiality Agreement”) simultaneously with his execution of this Employment Agreement.
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 7.3.            Non-Solicitation.  The Employee agrees that during the Employment Period and, (A) with respect to clause 7.3(i) below, for a period of one (1) year following the Termination Date (as defined below), and (B) with respect to clause 7.3(ii) below, for a period of two (2) years following the Termination Date, the Employee shall not, directly or indirectly, individually or acting as an employee, owner, partner, investor, officer, director, independent contractor, supplier, consultant, principal, agent or otherwise of any person:
 (i)                 recruit, solicit or induce, or attempt to induce, any employee or consultant of the Company or its affiliates, or anyone who was an employee or consultant during the twelve (12) month period prior to the Termination Date, to terminate their employment with, or otherwise cease their relationship with, the Company or any of its affiliates, provided that this paragraph shall not apply in the case that any employee or consultant of the Company responded to a general advertisement or became affiliated with Employee through other means not within Employee’s control;
 (ii)               solicit, divert or take away, or attempt to divert or to take away any of (a) the  clients, customers or accounts, or creditors or suppliers, of the Company or its affiliates who have done business with the Company or its affiliates during the twenty-four (24) month period prior to the Termination Date or (b) the prospective clients, customers or accounts, or creditors or suppliers, of the Company or its affiliates that became known to Employee by virtue of his relationship with the Company or to whom the Employee solicited business of any kind on behalf of the Company or its affiliates.
 7.4.            Non-Compete.  For a period of two (2) years commencing on the Effective Date (the “Restricted Period”), Employee shall not, directly or indirectly, (i) engage in or assist others in engaging in any Prohibited Activity in the United States of America (the “Territory”); (ii) have an interest in any person or entity that engages directly or indirectly in any Prohibited Activity in the Territory in any capacity, including as a partner, shareholder, member, employee, principal, agent, trustee or consultant; or (iii) cause, induce or encourage any material actual or prospective client, customer, supplier or licensor of the Company’s or any of its affiliates’ businesses (including any existing or former client or customer of Company or its affiliates and any person or entity that becomes a client or customer of the Company’s or any of its affiliates’ businesses after the Effective Date), or any other person or entity who has a material business relationship with the Company’s or any of its affiliates’ businesses, to terminate or modify any such actual or prospective relationship. Notwithstanding the foregoing, Employee may own, directly or indirectly, solely as an investment, securities of any entity traded on any national securities exchange if Company is not a controlling person or entity of, or a member of a group which controls, such entity and does not, directly or indirectly, own 5% or more of any class of securities of such entity.  For the purposes hereof, “Prohibited Activity” shall mean any activity in which the Employee contributes his knowledge, directly or indirectly, in whole or in part, as an employee, employer, owner, operator, manager, advisor, consultant, agent, partner, director, stockholder, officer or any other similar capacity (whether paid or unpaid) to an entity engaged in the same or similar business as the Company or TL Energy or any of their respective affiliates, including those engaged in the business of manufacturing or selling LED lighting technology products or LED lighting retrofit or conversion kits, or offering consulting, auditing or other similar services with respect to LED lighting . Prohibited Activity also includes activity that may require or inevitably require disclosure of trade secrets, proprietary information or Confidential Information.
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 7.5.            Enforcement.  The Employee acknowledges and agrees that the provisions of this Agreement, including all of this Section 7, and the terms of the Confidentiality Agreement are reasonable and necessary for the successful operation of the Company. The Employee further acknowledges that if the Employee breaches any provision of this Agreement, including Section 7, or of the Confidentiality Agreement, the Company will suffer irreparable injury. It is therefore agreed that the Company shall have the right to enjoin any such breach or threatened breach, without posting any bond, if ordered by a court of competent jurisdiction. The existence of this right to injunctive and other equitable relief shall not limit any other rights or remedies that the Company may have at law or in equity including, without limitation, the right to monetary, compensatory and punitive damages. If any provision of this Agreement or the Confidentiality Agreement is determined by a court of competent jurisdiction to be not enforceable in the manner set forth herein, the Employee and the Company agree that it is the intention of the parties that such provision should be enforceable to the maximum extent possible under applicable law.  
 7.6.            Specific Acknowledgement of this Section 7. Employee acknowledges that the restrictions contained in this Section 7 are reasonable and necessary to protect the legitimate interests of Company and its affiliates and constitute a material inducement to Company to enter into this Agreement. In the event that any covenant contained in this Section 7 should ever be adjudicated to exceed the time, geographic, product or service or other limitations permitted by applicable law in any jurisdiction, then any court is expressly empowered to reform such covenant, and such covenant shall be deemed reformed, in such jurisdiction to the maximum time, geographic, product or service or other limitations permitted by applicable law. The covenants contained in this Section 7 and each provision hereof are severable and distinct covenants and provisions. The invalidity or unenforceability of any such covenant or provision as written shall not invalidate or render unenforceable the remaining covenants or provisions hereof, and any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such covenant or provision in any other jurisdiction.
 8.                  Method of Termination.
 8.1.            Notice of Termination.   Employee and the Company shall deliver a Notice of Termination if either wishes to effect a termination of Employee’s employment.  For purposes of this Agreement, a “Notice of Termination” means a written notice that indicates the specific termination provision in this Agreement, if any, relied upon and shall set forth a brief description of the facts and circumstances claimed to provide a basis for termination of Employee’s employment under the provision so indicated.  Any termination by the Company or by Employee of Employee’s employment shall be communicated by written Notice of Termination to the other.  For purposes of this Agreement, no termination of employment shall be effective without such Notice of Termination.
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 8.2.            Termination Date.   For purposes of this Agreement, “Termination Date” means in the case of Employee’s death, his date of death, or in all other cases, the date specified in the Notice of Termination, subject to the following:
 (i)                 If Employee’s employment is terminated by the Company for Cause, the date of the Notice of Termination;
 (ii)               If Employee’s employment is terminated by the Company due to Disability, the date specified in the Notice of Termination which shall be no earlier than the date Employee is determined to be Disabled as defined in Section 6.3;
 (iii)             If Employee’s employment is terminated by Employee with or without Good Reason, the date specified in the Notice of Termination, which shall be thirty (30) days from the date the Notice of Termination is given to the Company; provided, however, that the Company may waive such thirty (30) days’ notice and deem such termination by Employee effective immediately; or
 (iv)             If Employee’s employment is terminated pursuant to expiration of this Agreement, upon written notice from the Company at least ninety days prior to the last day of the applicable term during the Employment Period, the Termination Date shall be the last day of the applicable term during the Employment Period, and no additional notice shall be required.
 9.                  Tax Considerations.  
                         The intent of the parties is that payments and benefits under this Agreement comply with Section 409A of the Code, and the regulations and guidance promulgated thereunder (collectively “Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement will be interpreted to be in compliance therewith.  Each payment made to Employee pursuant to Section 6 shall be treated as a separate payment for purposes of Section 409A.  Notwithstanding any provision to the contrary in this Agreement, to the extent that the Employee is a “specified employee” within the meaning of that term under Section 409A(a)(2)(B) of the Code, then with regard to any payment or the provision of any benefit that is required to be delayed in compliance with Section 409A(a)(2)(B) of the Code, such payment or benefit will not be made or provided prior to the earlier of (A) the expiration of the six-month period measured from the date of the Employee’s “separation from service” (as such term is defined under Section 409A, or (B) the date of the Executive’s death (the “Delay Period”).  Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this Section 9 (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) will be paid or reimbursed to the Employee in a lump sum, and any remaining payments and benefits due under this Agreement will be paid or provided in accordance with the normal payment dates specified for them herein. 
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 10.              Representations.   
 Employee represents and warrants that the Employee is not subject to a contract or restrictive covenant that would preclude the Employee from performing under this Agreement as of the Effective Date.
 11.              Indemnification. 
                         The Company shall indemnify and hold harmless the Employee against any and all expenses reasonably incurred by him in connection with or arising out of (a) the defense of any action, suit or proceeding in which he is a party, or (b) any claim asserted or threatened against him, in either case, by reason of or relating to his being or having been an employee, officer, or director of the Company, whether or not he continues to be such an employee, officer or director at the time of incurring such expenses, except insofar as such indemnification is prohibited by law or excluded from coverage under the Company’s applicable insurance policies.  Such expenses shall include, without limitation, the fees and disbursements of attorneys, amounts of judgments and amounts of any settlements, provided that such settlements are agreed to in advance in writing by the Company.  The foregoing indemnification obligation is independent of any similar obligation provided by the Company’s certificate of incorporation or by-laws, and shall apply with respect to any matters attributable to his employment under this Agreement, without regard to when asserted.  Notwithstanding the foregoing, the indemnification provisions of the Company’s by-laws shall control to the extent an indemnification claim is initially deemed excluded from coverage under the Company’s applicable insurance policy until a final judgment shall have been issued, pursuant to which the applicable insurer can make a final determination as to coverage under the applicable policy.
 12.              Notices. 
 All notices, requests and other communications pursuant to this Agreement shall be in writing and shall be deemed to have been duly given, if delivered in person or by courier, telegraphed, telexed or by facsimile transmission or sent by express, registered or certified mail, postage prepaid, addressed as follows:
 If to the Company:     Trans-Lux Corporation
950 Third Avenue, Suite 2804
                                                             New York, NY 10022
                                                             Attn:  President and CEO
                                                             with a cc to: General Counsel 
  
 If to Employee:           David Pavlik 
                                     At the address maintained from time to time in the Company’s files.
  
 Each party may change its address by written notice in accordance with this Section 12.
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 13.              Governing Law.
 This Agreement shall be construed and enforced under and in accordance with the laws of the State of New York, without regard to the principles of conflicts of laws thereof.
 14.              Successors and Assigns.
 At Company’s sole and absolute discretion, this Agreement may be binding upon Company’s successors and assigns and Company may require any successor or assign to expressly assume and agree to perform this Agreement in the same manner and to the same extent that Company would be required to perform if no such succession or assignment had taken place.  The term “Company” as used herein includes such successors and assigns.  The term “successors and assigns” as used herein means any person or entity that acquires all or substantially all of Company’s assets and business (including this Agreement) whether by operation of law or otherwise.  This Agreement, with respect to Employee, is for personal services, and is therefore not assignable.
 15.              Severability. 
 To the extent any provision of this Agreement or portion thereof shall be invalid or unenforceable, it shall be considered deleted therefrom and the remainder of such provision and of this Agreement shall be unaffected and shall continue in full force and effect.
 16.              Entire Agreement.
 This Agreement and the Confidentiality Agreement constitute the entire agreement by the Company and the Employee with respect to the subject matter hereof and except as specifically provided herein, supersedes any and all prior agreements or understandings between the Employee and the Company with respect to the subject matter hereof, whether written or oral.  This Agreement may be amended or modified only by a written instrument executed by the Employee and the Company.
  
 SIGNATURE PAGE FOLLOWS
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 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth above.
 TRANS-LUX CORPORATION
 By: /s/ J.M. Allain____________________ 
 Name:  J.M. Allain
 Title:    President and CEO
 /s/ David Pavlik__________________ 
                                                                         David Pavlik
  
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 EXHIBIT A
  
 Confidentiality and Proprietary Rights Agreement
 This Employee Confidentiality and Proprietary Rights Agreement ("Agreement") is entered into by and between TRANS-LUX CORPORATION, a Delaware Corporation (the "Employer") on behalf of itself, its subsidiaries and other corporate affiliates (collectively referred to herein as the "Employer Group"), and DAVID PAVLIK (the "Employee") (the Employer and the Employee are collectively referred to herein as the "Parties") as of May 27, 2014 (the "Effective Date"). 
 In consideration of the Employee's employment by the Employer, which the Employee acknowledges to be good and valuable consideration for his/her obligations hereunder, the Employer and the Employee hereby agree as follows:
 1.                  Confidentiality and Security. 
 (a)                Confidential Information
 The Employee understands and acknowledges that during the course of employment by the Employer, he/she will have access to and learn about confidential, secret and proprietary documents, materials and other information, in tangible and intangible form, of and relating to the Employer Group and its businesses and existing and prospective customers, suppliers, investors and other associated third parties ("Confidential Information"). The Employee further understands and acknowledges that this Confidential Information and the Employer's ability to reserve it for the exclusive knowledge and use of the Employer Group is of great competitive importance and commercial value to the Employer, and that improper use or disclosure of the Confidential Information by the Employee might cause the Employer to incur financial costs, loss of business advantage, liability under confidentiality agreements with third parties, civil damages and criminal penalties. 
 For purposes of this Agreement, Confidential Information includes, but is not limited to, all information not generally known to the public, in spoken, printed, electronic or any other form or medium, relating directly or indirectly to: business processes, practices, methods, policies, plans, publications, documents, research, operations, services, strategies, techniques, agreements, contracts, terms of agreements, transactions, potential transactions, negotiations, pending negotiations, know-how, trade secrets, computer programs, computer software, applications, operating systems, software design, web design, work-in-process, databases, manuals, records, articles, systems, material, sources of material, supplier information, vendor information, financial information, results, accounting information, accounting records, legal information, marketing information, advertising information, pricing information, credit information, design information, payroll information, staffing information, personnel information, employee lists, supplier lists, vendor lists, developments, reports, internal controls, security procedures, graphics, drawings, sketches, market studies, sales information, revenue, costs, formulae, notes, communications, algorithms, product plans, designs, styles, models, ideas, audiovisual programs, inventions, unpublished patent applications, original works of authorship, discoveries, experimental processes, experimental results, specifications, customer information, customer lists, client information, client lists, manufacturing information, factory lists, distributor lists, and buyer lists of the Employer Group or its businesses or any existing or prospective customer, supplier, investor or other associated third party, or of any other person or entity that has entrusted information to the Employer in confidence. 
   
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The Employee understands that the above list is not exhaustive, and that Confidential Information also includes other information that is marked or otherwise identified as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary in the context and circumstances in which the information is known or used. 
 The Employee understands and agrees that Confidential Information developed by him/her in the course of his/her employment by the Employer shall be subject to the terms and conditions of this Agreement as if the Employer furnished the same Confidential Information to the Employee in the first instance. Confidential Information shall not include information that is generally available to and known by the public at the time of disclosure to the Employee, provided that such disclosure is through no direct or indirect fault of the Employee or person(s) acting on the Employee's behalf.
 (b)               Disclosure and Use Restrictions
 The Employee agrees and covenants: (i) to treat all Confidential Information as strictly confidential; (ii) not to directly or indirectly disclose, publish, communicate or make available Confidential Information, or allow it to be disclosed, published, communicated or made available, in whole or part, to any entity or person whatsoever (including other employees of the Employer Group) not having a need to know and authority to know and use the Confidential Information in connection with the business of the Employer Group and, in any event, not to anyone outside of the direct employ of the Employer Group except as required in the performance of the Employee's authorized employment duties to the Employer and only after execution of a confidentiality agreement by the third party with whom Confidential Information will be shared and with the prior consent of an authorized officer acting on behalf of the Employer Group in each instance (and then, such disclosure shall be made only within the limits and to the extent of such duties or consent); and (iii) not to access or use any Confidential Information, and not to copy any documents, records, files, media or other resources containing any Confidential Information, or remove any such documents, records, files, media or other resources from the premises or control of the Employer Group, except as required in the performance of the Employee's authorized employment duties to the Employer or with the prior consent of an authorized officer acting on behalf of the Employer Group in each instance (and then, such disclosure shall be made only within the limits and to the extent of such duties or consent). Nothing herein shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation or order. The Employee shall promptly provide written notice of any such order to an authorized officer of the Employer Group. In addition, this Section does not, in any way, restrict or impede the Employee from discussing the terms and conditions of his/her employment with co-workers or union representatives, exercising his/her rights under Section 7 of the National Labor Relations Act, exercising protected rights to the extent that such rights cannot be waived by agreement, or disclosing information as required by law.
  
    	 14

  

 
  
  (c)                Duration of Confidentiality Obligations
 The Employee understands and acknowledges that his/her obligations under this Agreement with regard to any particular Confidential Information shall commence immediately upon the Employee first having access to such Confidential Information (whether before or after he/she begins employment by the Employer) and shall continue during and after his/her employment by the Employer until such time as such Confidential Information has become public knowledge other than as a result of the Employee's breach of this Agreement or breach by those acting in concert with the Employee or on the Employee's behalf.
 2.                  Proprietary Rights. 
 (a)                Work Product
 The Employee acknowledges and agrees that all writings, works of authorship, technology, inventions, discoveries, ideas and other work product of any nature whatsoever, that are created, prepared, produced, authored, edited, amended, conceived or reduced to practice by the Employee individually or jointly with others during the period of his/her employment by the Employer and relating in any way to the business or contemplated business, research or development of the Employer (regardless of when or where the Work Product is prepared or whose equipment or other resources is used in preparing the same) and all printed, physical and electronic copies, all improvements, rights and claims related to the foregoing, and other tangible embodiments thereof (collectively, "Work Product"), as well as any and all rights in and to copyrights, trade secrets, trademarks (and related goodwill), mask works, patents and other intellectual property rights therein arising in any jurisdiction throughout the world and all related rights of priority under international conventions with respect thereto, including all pending and future applications and registrations therefore, and continuations, divisions, continuations-in-part, reissues, extensions and renewals thereof (collectively, "Intellectual Property Rights"), shall be the sole and exclusive property of the Employer.
 For purposes of this Agreement, Work Product includes, but is not limited to, Employer Group information, including plans, publications, research, strategies, techniques, agreements, documents, contracts, terms of agreements, negotiations, know-how, computer programs, computer applications, software design, web design, work in process, databases, manuals, results, developments, reports, graphics, drawings, sketches, market studies, formulae, notes, communications, algorithms, product plans, product designs, styles, models, audiovisual programs, inventions, unpublished patent applications, original works of authorship, discoveries, experimental processes, experimental results, specifications, customer information, client information, customer lists, client lists, manufacturing information, marketing information, advertising information, and sales information. 
 (b)               Work Made for Hire; Assignment
 The Employee acknowledges that, by reason of being employed by the Employer at the relevant times, to the extent permitted by law, all of the Work Product consisting of copyrightable subject matter is "work made for hire" as defined in the Copyright Act of 1976 (17 U.S.C. § 101), and such copyrights are therefore owned by the Employer. To the extent that the foregoing does not apply, the Employee hereby irrevocably assigns to the Employer, for no additional consideration, the Employee's entire right, title and interest in and to all Work Product and Intellectual Property Rights therein, including the right to sue, counterclaim and recover for all past, present and future infringement, misappropriation or dilution thereof, and all rights corresponding thereto throughout the world. Nothing contained in this Agreement shall be construed to reduce or limit the Employer's rights, title or interest in any Work Product or Intellectual Property Rights so as to be less in any respect than that the Employer would have had in the absence of this Agreement.
  
   	 15

  

 
  
  (c)                Further Assurances; Power of Attorney
 During and after his/her employment, the Employee agrees to reasonably cooperate with the Employer to (i) apply for, obtain, perfect and transfer to the Employer the Work Product as well as an Intellectual Property Rights in the Work Product in any jurisdiction in the world; and (ii) maintain, protect and enforce the same, including, without limitation, executing and delivering to the Employer any and all applications, oaths, declarations, affidavits, waivers, assignments and other documents and instruments as shall be requested by the Employer. The Employee hereby irrevocably grants the Employer power of attorney to execute and deliver any such documents on the Employee's behalf in his/her name and to do all other lawfully permitted acts to transfer the Work Product to the Employer and further the transfer, issuance, prosecution and maintenance of all Intellectual Property Rights therein, to the full extent permitted by law, if the Employee does not promptly cooperate with the Employer's request (without limiting the rights the Employer shall have in such circumstances by operation of law). The power of attorney is coupled with an interest and shall not be affected by the Employee's subsequent incapacity.
 (d)               Moral Rights
 To the extent any copyrights are assigned under this Agreement, the Employee hereby irrevocably waives, to the extent permitted by applicable law, any and all claims the Employee may now or hereafter have in any jurisdiction to all rights of paternity, integrity, disclosure and withdrawal and any other rights that may be known as "moral rights" with respect to all Work Product and all Intellectual Property Rights therein.
 (e)                No License
 The Employee understands that this Agreement does not, and shall not be construed to, grant the Employee any license or right of any nature with respect to any Work Product or Intellectual Property Rights or any Confidential Information, materials, software or other tools made available to him/her by the Employer.
 3.                  Security. 
 (a)                Security and Access
 The Employee agrees and covenants (i) to comply with all Employer Group security policies and procedures as in force from time to time including without limitation those regarding computer equipment, telephone systems, voicemail systems, facilities access, monitoring, key cards, access codes, Employer Group intranet, internet, social media and instant messaging systems, computer systems, e-mail systems, computer networks, document storage systems, software, data security, encryption, firewalls, passwords and any and all other Employer Group facilities, IT resources and communication technologies ("Facilities Information Technology and Access Resources"); (ii) not to access or use any Facilities Information Technology and Access Resources except as authorized by Employer; and (iii) not to access or use any Facilities Information Technology and Access Resources in any manner after the termination of the Employee's employment by the Employer, whether termination is voluntary or involuntary. The Employee agrees to notify the Employer promptly in the event he/she learns of any violation of the foregoing by others, or of any other misappropriation or unauthorized access, use, reproduction or reverse engineering of, or tampering with any Facilities Information Technology and Access Resources or other Employer Group property or materials by others. 
  
   	 16

  

 
  
    

 (b)               Exit Obligations
 Upon (i) voluntary or involuntary termination of the Employee's employment or (ii) the Employer's request at any time during the Employee's employment, the Employee shall (a) provide or return to the Employer any and all Employer Group property, including keys, key cards, access cards, identification cards, security devices, employer credit cards, network access devices, computers, cell phones, smart-phones, PDAs, pagers, fax machines, equipment, speakers, webcams, manuals, reports, files, books, compilations, work product, e-mail messages, recordings, tapes, disks, thumb drives or other removable information storage devices, hard drives, negatives and data and all Employer Group documents and materials belonging to the Employer and stored in any fashion, including but not limited to those that constitute or contain any Confidential Information or Work Product, that are in the possession or control of the Employee, whether they were provided to the Employee by the Employer Group or any of its business associates or created by the Employee in connection with his/her employment by the Employer; and (b) delete or destroy all copies of any such documents and materials not returned to the Employer that remain in the Employee's possession or control, including those stored on any non-Employer Group devices, networks, storage locations and media in the Employee's possession or control.
 4.                  Publicity. Employee hereby consents to any and all uses and displays, by the Employer Group and its agents, of the Employee's name, voice, likeness, image, appearance and biographical information in, on or in connection with any pictures, photographs, audio and video recordings, digital images, websites, television programs and advertising, other advertising, sales and marketing brochures, books, magazines, other publications, CDs, DVDs, tapes and all other printed and electronic forms and media throughout the world, at any time during or after the period of his/her employment by the Employer, for all legitimate business purposes of the Employer Group ("Permitted Uses"). Employee hereby forever releases the Employer Group and its directors, officers, employees and agents from any and all claims, actions, damages, losses, costs, expenses and liability of any kind, arising under any legal or equitable theory whatsoever at any time during or after the period of his/her employment by the Employer, in connection with any Permitted Use.
 5.                  Non-Disparagement. The Employee agrees and covenants that he/she will not at any time make, publish or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments or statements concerning the Employer Group or its businesses, or any of its employees, officers, and existing and prospective customers, suppliers, investors and other associated third parties. This Section does not, in any way, restrict or impede the Employee from exercising his/her rights under Section 7 of the National Labor Relations Act or protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation or order. The Employee shall promptly provide written notice of any such order to an authorized officer of the Employer Group.
  
   	 17

  

 
  
  6.                  Acknowledgement. The Employee acknowledges and agrees that the services to be rendered by him/her to the Employer are of a special and unique character; that the Employee will obtain knowledge and skill relevant to the Employer's industry, methods of doing business and marketing strategies by virtue of the Employee's employment; and that the terms and conditions of this Agreement are reasonable under these circumstances. The Employee further acknowledges that the amount of his/her compensation reflects, in part, his/her obligations and the Employer's rights under this Agreement; that he/she has no expectation of any additional compensation, royalties or other payment of any kind not otherwise referenced herein in connection herewith; that he/she will not be subject to undue hardship by reason of his/her full compliance with the terms and conditions of this Agreement or the Employer's enforcement thereof; and that this Agreement is not a contract of employment and shall not be construed as a commitment by either of the Parties to continue an employment relationship for any certain period of time. 
 7.                  Remedies. In the event of a breach or threatened breach by the Employee of any of the provisions of this Agreement, the Employee hereby consents and agrees that the Employer shall be entitled to seek, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that monetary damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages or other available forms of relief.
 8.                  Successors and Assigns. 
 (a)                Assignment by the Employer
 The Employer may assign this Agreement to any subsidiary or corporate affiliate in the Employer Group or otherwise, or to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Employer. This Agreement shall inure to the benefit of the Employer Group and permitted successors and assigns.
 (b)               No Assignment by the Employee
 The Employee may not assign this Agreement or any part hereof. Any purported assignment by the Employee shall be null and void from the initial date of purported assignment.
 9.                  Arbitration. Any dispute, controversy or claim arising out of or related to this Agreement or any breach of this agreement shall be, at Employer’s option, submitted to and decided by binding arbitration. Arbitration shall be administered exclusively by the Arbitration Association of America and shall be conducted consistent with the rules, regulations and requirements thereof. Any arbitral award determination shall be final and binding upon the Parties.
  
   	 18

  

 
  
  10.              Governing Law; Jurisdiction and Venue. This Agreement, for all purposes, shall be construed in accordance with the laws of New York without regard to conflicts-of-law principles. Any action or proceeding by either Party to enforce this Agreement shall be brought only in any state or federal court located in the state of New York, county of New York.  The Parties hereby irrevocably submit to the non-exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding in such venue.
 11.              Entire Agreement. Unless specifically provided herein, this Agreement contains all the understandings and representations between the Employee and the Employer pertaining to the subject matter hereof and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter. 
 12.              Modification and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in writing and signed by the Employee and by the Chief Executive Officer of the Employer (other than the Employee). No waiver by either of the Parties of any breach by the other party hereto of any condition or provision of this Agreement to be performed by the other party hereto shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay by either of the Parties in exercising any right, power or privilege hereunder operate as a waiver thereof to preclude any other or further exercise thereof or the exercise of any other such right, power or privilege.
 13.              Severability. Should any provision of this Agreement be held by a court of competent jurisdiction to be enforceable only if modified, or if any portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the Parties with any such modification to become a part hereof and treated as though originally set forth in this Agreement. The Parties further agree that any such court is expressly authorized to modify any such unenforceable provision of this Agreement in lieu of severing such unenforceable provision from this Agreement in its entirety, whether by rewriting the offending provision, deleting any or all of the offending provision, adding additional language to this Agreement or by making such other modifications as it deems warranted to carry out the intent and agreement of the Parties as embodied herein to the maximum extent permitted by law. The Parties expressly agree that this Agreement as so modified by the court shall be binding upon and enforceable against each of them. In any event, should one or more of the provisions of this Agreement be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions hereof, and if such provision or provisions are not modified as provided above, this Agreement shall be construed as if such invalid, illegal or unenforceable provisions had not been set forth herein.
 14.              Captions. Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the caption or heading of any section or paragraph.
  
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 15.              Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.
  
 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date above.
  	  
	 TRANS-LUX CORPORATION

	  
	 By_/s/ J.M. Allain______________ 
  
Name: J.M. Allain
 Title: President and Chief Executive Officer

	  
 DAVID PAVLIK
  
  
	  

	 Signature: _/s/ David Pavlik________ 
  
 
	  

  
    	 20

  

 
  
    

 EXHIBIT B
  
 See attached Form of Restricted Stock Agreement
  
 TRANS-LUX CORPORATION
 FORM OF Restricted Stock Agreement
  
 This Restricted Stock Agreement (this “Agreement”) dated May 27, 2014 is made by and between Trans-Lux Corporation, a Delaware corporation (the “Company”), and David Pavlik (the “Grantee”).
 WHEREAS, the Grantee and the Company have entered into that certain Employment Agreement dated as of May 27, 2014 (the “Employment Agreement”); and
 WHEREAS, pursuant to the terms of the Employment Agreement and by authorization by the Board of Directors of the Company at a meeting held on March 17, 2014 the Company has agreed to issue shares of restricted stock of the Company to the Grantee as part of Grantee’s compensation package.
 NOW, THEREFORE, the parties hereto hereby agree as follows:
 1.                  Issuance of Restricted Stock.  The Company hereby grants to Grantee as of May 28, 2014 (the “Grant Date”) 50,000 shares of the Company’s common stock, par value $0.001 per share (the “Restricted Stock”), subject to the following terms, conditions, limitations and restrictions contained in this Agreement.  The Restricted Stock covered by this Agreement shall be fully paid and nonassessable and shall be represented by certificates registered in the name of the Grantee bearing a legend referring to the restrictions on transferability of the shares of Restricted Stock pursuant to this Agreement or any other restrictions that Board of Directors of the Company may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any applicable federal or state securities laws or any stock exchange on which the Restricted Stock then listed or quoted.  Grantee agrees and acknowledges that, upon the issuance of the Restricted Stock, all of the Company’s payment obligations with respect to the Outstanding Fees shall have been fulfilled and the Grantee shall no longer be entitled to any further payment with respect to the Outstanding Fees.
 2.                  Restrictions on Transfer of Restricted Stock.  The Restricted Stock subject to this Agreement may not be transferred, sold, pledged, exchanged, assigned or otherwise encumbered or disposed of by the Grantee, except to the Company, unless and until it has become vested and nonforfeitable in accordance with Section 3 hereof; provided, however, that the Grantee’s interest in the Restricted Stock covered by this Agreement may be transferred at any time by will or the laws of descent and distribution.  Any purported transfer, encumbrance or other disposition of the Restricted Stock covered by this Agreement that is in violation of this Section 2 will be null and void, and the other party to any such purported transaction shall not obtain any rights to or interest in the Restricted Stock covered by this Agreement.  Notwithstanding the foregoing, all transfers of Restricted Stock granted hereunder must be consummated in accordance with all rules, regulations and other requirements of the Securities and Exchange Commission and all applicable federal and state securities and other laws.
 3.                  Vesting of Restricted Stock.  The Restricted Stock covered by this Agreement shall become vested and nonforfeitable as of June 30, 2014.

 21
  

  
 
    

 4.                  Dividend, Voting and Other Rights.  The Grantee shall have all of the rights of a shareholder with respect to the Restricted Stock covered by this Agreement, including the right to vote such Restricted Stock and receive any dividends that may be paid thereon.  Any additional stock that the Grantee may become entitled to receive pursuant to a share dividend or a merger or reorganization in which the Company is the surviving Company or any other change in the capital structure of the Company shall be subject to the same restrictions as the Restricted Stock covered by this Agreement.
 5.                  Compliance with Law.  The Company shall make reasonable efforts to comply with all applicable federal and state securities laws; provided, however, that notwithstanding any other provision of this Agreement, the Company shall not be obligated to issue any restricted or unrestricted Restricted Stock pursuant to this Agreement if the issuance thereof would result in a violation of any such law.  
 6.                  Retention of Share Certificates by Company.  The certificates representing the Restricted Stock covered by this Agreement shall be held in custody by the Company or its transfer agent until such shares have become vested in accordance with Section 3 hereof.
 7.                  Adjustments.  The Company shall make any adjustments in the number or kind of shares of stock or other securities covered by this Agreement that the Company may determine to be equitably required to prevent any dilution or enlargement of the Grantee’s rights under this Agreement that would result from any (a) stock dividend, stock split, combination of shares, recapitalization or other change in the capital structure of the Company, (b) merger, consolidation, spin-off, spin-out, split-off, split-up, reorganization, partial or complete liquidation or other distribution of assets, issuance of rights or warrants to purchase securities, or (c) other corporate transaction or event having an effect similar to any of the foregoing.
 8.                  Withholding Taxes. Upon the vesting of any portion of the Restricted Stock, the Grantee shall be required to pay to the Company any applicable Federal, state, local or foreign withholding tax due as a result of such vesting.  The Company’s obligation to deliver the Restricted Stock shall be subject to such payment.  The Company shall, to the extent permitted by law, have the right to deduct from any payment of any kind otherwise due to the Grantee any Federal, state, local or foreign withholding taxes due with respect to such vesting.  Subject to (i) the Company’s right to disapprove any such election and require the Grantee to pay the required withholding tax in cash, (ii) any applicable Company policies, and (iii) all applicable laws, the Grantee may elect to pay the required withholding tax in shares of Restricted Stock to be received upon vesting.  Any such election shall be irrevocable, made in writing, and signed by the Grantee.  Shares of Restricted Stock used to pay any required withholding tax shall be valued at the same time and in the same manner that vested shares of Restricted Stock are valued for purposes of determining the required withholding taxes.  The Company makes no representation or commitment that any federal or state tax treatment will apply or be available to any person eligible for benefits under this Agreement. 11.    The Grantee shall notify the Company within ten (10) days after any election made pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”).  THE Grantee ACKNOWLEDGES THAT IT IS THE Grantee’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO FILE TIMELY AN ELECTION UNDER SECTION 83(b) OF THE CODE, IN THE EVENT THAT THE Grantee DESIRES TO MAKE SUCH ELECTION.
 9.                  No Employment Rights.  The adoption and maintenance of this Agreement shall not be deemed to be a contract of employment or service between the Company and any person.
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 10.              Waiver.  The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver thereof or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.
 11.              Amendments.  This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof.  Any term or provision of this Agreement may be amended or supplemented at any time by the mutual written consent of the parties hereto.  Notwithstanding the foregoing, this Agreement may be amended from time to time, without the consent of the Grantee, as may be necessary or appropriate to comply with the provisions of Section 409A of the Code and Treasury Regulations and other Internal Revenue Service guidance promulgated thereunder.
 12.              Severability.  In the event that one or more of the provisions of this Agreement is invalidated for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof, and the remaining provisions hereof will continue to be valid and fully enforceable.
 13.              Successors.  This Agreement shall be binding upon and inure to the benefit of the successors, assigns and heirs of the respective parties.
 14.              Governing Law.  This Agreement shall be governed by, and interpreted in accordance with, the laws of the State of New York without regard to its principles of conflict of laws.
 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.
  	  
	 TRANS-LUX CORPORATION

	  
	  

	  
	 By:
	  /s/ J.M. Allain

	  
	  
	 Name:
	 J.M. Allain

	  
	  
	 Title:
	 President and Chief Executive Officer

  
  
  	  
	 GRANTEE

	  
	  

	  
	 By:
	  /s/ David Pavlik

	  
	  
	 Name:
	 David Pavlik

	  
	  
	 Title:
	 President of TL Energy

  
  
    	 23exhibit10.2

    

 EXhibit 10.2
 MIZUHO SECURITIES USA INC.
 Sublandlord
 and
 TRANS-LUX CORPORATION
 Subtenant

 _______________________________________________________________
 SUBLEASE

 _______________________________________________________________
 Dated as of August 6, 2014
   
  
  

 
  
    

  
  
  	  
	 TABLE OF CONTENTS
	  

	 
	 
	 

	 1
	 Term
	 1

	 2
	 Annual Fixed Rent and Additional Charges
	 2

	 3
	 Quiet Enjoyment; Use of the Sublease Premises
	 5

	 4
	 Incorporation of Overlease Terms.
	 5

	 5
	 Non-Applicability of Certain Provisions of the Overlease.
	 7

	 6
	 Sublease Subject to Overlease.
	 8

	 7
	 Provision of Services; Overlandlord Actions
	 10

	 8
	 Compliance with Laws
	 10

	 9
	 Alterations
	 11

	 10
	 Intentionally Omitted
	 11

	 11
	 Insurance
	 11

	 12
	 Non-Liability and Indemnification.
	 12

	 13
	 Access; Change in Facilities
	 13

	 14
	 Damage or Destruction
	 13

	 15
	 Eminent Domain
	 13

	 16
	 At End of Term
	 14

	 17
	 Intentionally Omitted
	 15

	 18
	 Rules and Regulations
	 15

	 19
	 Estoppel Certificates.
	 15

	 20
	 No Personal Liability
	 16

	 21
	 No Recording
	 16

	 22
	 No Assignment or Subletting
	 16

	 23
	 Brokerage
	 21

	 24
	 Assignment of the Overlease
	 21

	 25
	 Notices and Cure Periods; Conditions of Limitation and Remedies
	 21

	 26
	 Condition of the Sublease Premises
	 23

	 27
	 Security
	 24

	 28
	 Miscellaneous
	 25

	 29
	 Valid Authority
	 26

	 30
	 Failure to Give Possession
	 26

	 31
	 Consent of Overlandlord under the Overlease
	 26

  
 EXHIBIT A – Floor Plan of Sublease Premises
 EXHIBIT B – Overlease
EXHIBIT C – Form of Letter of Credit
 EXHIBIT D – Sublandlord’s Work
   
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 SUBLEASE
 AGREEMENT OF SUBLEASE (“Sublease”) dated as of the 6th day of August, 2014, by and between Mizuho Securities USA Inc., a Delaware corporation having its principal office at 320 Park Avenue, New York, New York 10022 (“Sublandlord”), and Trans-Lux Corporation, a Delaware corporation having its principal office at 950 Third Avenue, Suite 2804, New York, New York  10022 (“Subtenant”, and together with Sublandlord, the “Parties”). 
 W I T N E S S  E T H: 
                         WHEREAS, by Agreement of Lease dated as of September 28, 2007, between Park Avenue Properties Associates LLC (“Overlandlord”), as landlord, and The Bridgeford Group, Inc., A Mizuho Company, Sublandlord’s predecessor-in-interest, as tenant (the “Overlease”), Sublandlord a portion of the 20th floor (the “Premises”) in the building (the “Building”) located at 445 Park Avenue, New York, New York for a term to expire on November 30, 2017 (subject to earlier termination in accordance with the terms thereof); and
  
                         WHEREAS, Subtenant desires to sublet from Sublandlord the entire Premises, as more particularly shown on the floor plan annexed hereto and made a part hereof as Exhibit A  (the “Sublease Premises”), upon the terms and subject to the provisions and conditions hereinafter set forth;
  
 NOW, THEREFORE, the Parties hereto, in consideration of the mutual covenants, conditions and agreements hereinafter contained, do hereby agree as follows:  
 1.                  Term. 
 A.                Sublandlord hereby sublets the Sublease Premises to Subtenant, and Subtenant hereby hires the Sublease Premises from Sublandlord, for a term (the “Term”) which shall commence on the date (the “Commencement Date”) that shall be the latest to occur of (i) the execution and delivery of this Sublease by the parties hereto, (ii) the date that Overlandlord shall have consented to this Sublease, and (iii) delivery of the Sublease Premises to Subtenant with Sublandlord’s Work (as hereinafter defined) having been substantially completed, and which shall end on November 29, 2017 (the “Expiration Date”), unless sooner terminated in accordance with the provisions of this Sublease.  For the purposes of this Subparagraph 1A, Sublandlord’s Work shall be deemed substantially completed when such work shall have been performed by Sublandlord except for minor details of construction, decoration and mechanical adjustments, if any, the non-completion of which does not interfere (other than to a de minimis extent) with Subtenant's use of the Sublease Premises for the ordinary conduct of Subtenant's business and for the prosecution of Subtenant’s Work or any other Alterations (collectively, "Punch List Items"); it being agreed that Sublandlord shall nevertheless promptly and diligently complete the Punch List Items following the Commencement Date.  
 B.                 Subtenant agrees to accept possession of the Sublease Premises and all equipment, furnishings and fixtures therein, if any, in "as is" and "where is" and broom clean condition on the Commencement Date, subject to the performance by Sublandlord of the work specified in Exhibit "D" which is annexed hereto and made a part hereof ("Sublandlord's Work").  Except for Sublandlord's Work, Sublandlord shall not be obligated to perform any work whatsoever to prepare the Sublease Premises for Subtenant.  All materials, work, labor, fixtures and installations required for completion of the Sublease Premises and the operation of Subtenant's business thereat (other than Sublandlord’s Work) shall (subject to the provisions of Article 9 below) be promptly furnished and performed by Subtenant, at Subtenant's own cost and expense. 
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  C.                 Subtenant specifically acknowledges and agrees that Subtenant has approved (x) the scope of work to be performed by Sublandlord as part of Sublandlord’s Work, and (y) the materials to be used by Sublandlord in performing Sublandlord’s Work.
 D.                Simultaneously with the execution hereof by Sublandlord, Sublandlord shall deliver to Subtenant a check made payable to Subtenant in the amount of $1,050.00, which amount Subtenant hereby covenants and agrees to apply toward the cost of doing certain work in the existing pantry area in the Sublease Premises, with such work to be performed by Subtenant.  Nothing contained in the immediately preceding sentence shall be deemed to constitute Sublandlord’s approval of or consent to such work, Subtenant hereby expressly acknowledging and agreeing that Subtenant, prior to performing such work, shall be responsible for obtaining any and all necessary approvals of such work in accordance with the terms and conditions of this Sublease, nor shall Subtenant’s failure to perform such work or delay in performing such work delay or otherwise impact the occurrence of the Commencement Date.
 2.                  Annual Fixed Rent and Additional Charges.  
 A.                Subtenant covenants and agrees that, during and throughout the entire Term, Subtenant shall pay to Sublandlord, annual fixed rent (“Fixed Rent”) in the amount of US$223,449.00 per annum (in monthly installments of US$18,620.75) during and for the period commencing on the Commencement Date and continuing through and including the Expiration Date, which (x) Subtenant covenants and agrees to pay to Sublandlord, in lawful money of the United States, in equal monthly installments in advance at the office of Sublandlord or such other place as Sublandlord may designate, on the fifth business day prior to the first day of each calendar month during the Term, without any deduction, offset, abatement, defense and/or counterclaim whatsoever, except that Subtenant shall pay the first monthly installment of Fixed Rent simultaneously with the execution and delivery of this Sublease, and (y) amount is inclusive of the ERIF (as defined in the Overlease).  The monthly installment of Fixed Rent payable on account of any partial calendar month during the Term, if any, shall be prorated, and, if the Commencement Date shall occur on other than the first day of a calendar month, the prorated installment of Fixed Rent due for the month in which the Commencement Date shall occur shall be paid together with the next due monthly installment of Fixed Rent.  Subtenant specifically acknowledges and agrees that the Fixed Rent is subject to adjustment as a result of any changes to the ERIF in accordance with the provisions of the Overlease.
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 B.                 In addition to the Fixed Rent payable hereunder, Subtenant covenants to pay, for each Comparison Year (as hereinafter defined), any part of which shall occur during the Term, as additional rent (“Additional Charges”), without any deduction, offset, abatement, defense and/or counterclaim whatsoever:  (i) an amount (the “Operating Expense Payment”) equal to Subtenant’s Proportionate Share (as hereinafter defined) of the amount, if any, by which the Overlease Operating Expenses (as hereinafter defined) for such Comparison Year shall exceed the Base Operating Expenses (as hereinafter defined); provided, however, that if the Commencement Date shall occur other than on the first day of a Comparison Year or if the Term shall expire or be sooner terminated on other than the last day of a Comparison Year, then the Operating Expense Payment in respect thereof shall be prorated to correspond to that portion of such Comparison Year occurring within the Term; (ii) an amount (the “Subtenant Tax Payment”) equal to Subtenant’s Proportionate Share (as hereinafter defined) of the amount, if any, by which Real Estate Taxes (as hereinafter defined) for such Comparison Year shall exceed the Base Taxes (as hereinafter defined); provided, however, that if the Commencement Date shall occur other than on the first day of a Comparison Year or if the Term shall expire or be sooner terminated on other than the last day of a Comparison Year, then the Subtenant Tax Payment in respect thereof shall be prorated to correspond to that portion of such Comparison Year occurring within the Term and (iii) all other amounts that are required to be paid as Additional Rent to Overlandlord pursuant to the Overlease and which are payable with respect to the Sublease Premises for periods occurring wholly or in part within the Term.
 C.                 As used herein:
 (i)                   “Base Operating Expenses” shall mean the Overlease Operating Expenses for the 2014 calendar year.
 (ii)               “Base Tax Year” shall mean the fiscal year commencing July 1, 2014 and ending June 30, 2015, and “Base Taxes” shall mean the Real Estate Taxes payable for the Base Tax Year.
 (iii)             “Comparison Year” shall mean (i) with respect to Real Estate Taxes, each fiscal year (subsequent to the Base Tax Year and whether wholly or partially within the Term of this Sublease) commencing on July 1 and ending on June 30, and (ii) with respect to Overlease Operating Expenses, each calendar year wholly or partially within the Term of this Sublease.  
 (iv)             “Overlease Operating Expenses” shall mean the “Operating Expenses” as defined in the Overlease.
 (v)               “Subtenant’s Proportionate Share” shall mean 1.14%, Subtenant expressly acknowledging and agreeing that Subtenant’s Proportionate Share shall be 100 percent of the “Tenant’s Share” under the Overlease.  
 (vi)             “Real Estate Taxes” shall have the meaning ascribed thereto in the Overlease.
 D.                Sublandlord shall furnish to Subtenant copies of all Tax Statements, Adjusted Tax Statements, Landlord’s Statements and any other statements prepared by or on behalf of Overlandlord relating to Overlandlord’s calculation of Real Estate Taxes and Overlease Operating Expenses if and to the extent received by Sublandlord from Overlandlord.
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 E.                 Subtenant shall pay all Additional Charges payable under said Subparagraph 2B directly to Sublandlord at least five business days prior to the respective due dates under the Overlease for the payment of such charges.
 F.                  Subject to the provisions of Subparagraph 2G below, all payments of Fixed Rent and Additional Charges (Fixed Rent and Additional Charges are collectively referred to herein as “Rent”) shall be made by good and sufficient check (subject to collection) currently dated, drawn on a bank which is a member of the New York Clearing House or any successor thereto, issued directly from Subtenant, without endorsements, to the order of Sublandlord.  
 G.                Notwithstanding anything to the contrary contained in Subparagraph 2F above, provided that Sublandlord shall give Subtenant not less than 30 days’ notice thereof (which notice shall identify a domestic bank and contain appropriate wire instructions), Subtenant shall pay all future monthly installments of Fixed Rent and/or regularly scheduled items of Additional Charges (collectively, “Recurring Additional Charges”) at the office of such domestic bank, by wire transfer of immediately available federal funds, to the account of Sublandlord.  On not less than 30 days’ notice, Sublandlord may thereafter revise or revoke such direction to pay Fixed Rent and/or Recurring Additional Charges by wire transfer.  In addition, Subtenant may elect to pay monthly installments of Fixed Rent and/or Recurring Additional Charges at a domestic bank identified by Sublandlord, by wire transfer of immediately available federal funds, to the account of Sublandlord.  If Sublandlord shall direct Subtenant to pay, or if Subtenant shall have otherwise elected to pay, Fixed Rent and/or Recurring Additional Charges by wire transfer, then Subtenant shall not be in default of Subtenant’s obligation to pay Fixed Rent and/or Recurring Additional Charges, nor shall any interest be imposed, if and for so long as Subtenant shall timely comply with Sublandlord’s wire instructions in connection with such payments.  Accordingly, if Subtenant shall have timely complied with Sublandlord’s instructions pertaining to a wire transfer, but the funds shall thereafter have been misdirected or not accounted for properly by the recipient bank designated by Sublandlord, then the same shall not relieve Subtenant’s obligation to make the payment so wired, but shall toll the due date for such payment until the wired funds shall have been located.  However, for all other purposes under this Sublease:  (i) Sublandlord shall not be deemed to have accepted such payment until 30 days’ after the date on which such funds shall have actually been deposited in Sublandlord’s account at said bank, and (ii) Sublandlord shall be deemed to have accepted such payment if (and only if) within said 30 day period, Sublandlord shall not have refunded (or attempted to refund) such payment to Subtenant.
 H.                In the event that Additional Rent is due under the Overlease with respect to any period that precedes the Commencement Date or follows the Expiration Date, Subtenant’s obligations hereunder on account of such Additional Rent shall be appropriately prorated.  
 I.                   Notwithstanding anything to the contrary contained in this Sublease, all sums of money, other than Fixed Rent, as shall become due and payable by Subtenant to Sublandlord under this Sublease shall be deemed to be Additional Charges, and Sublandlord shall have the same rights and remedies in the event of non-payment of Additional Charges as are available to Sublandlord for the non-payment of Fixed Rent. 
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 J.                   Notwithstanding anything to the contrary provided in Subparagraph 2A above, provided that Subtenant shall not then be in default (after notice and the expiration of the applicable cure period) with respect to any of Subtenant’s obligations under this Sublease, Sublandlord hereby conditionally excuses Subtenant’s obligation to pay Fixed Rent for the September 2017, October 2017 and November 2017 calendar months.  If, at any time during the Term, Subtenant shall be in default beyond the expiration of the applicable cure period (if any) with respect to (x) Subtenant’s obligation to pay Fixed Rent and Additional Charges hereunder, or (y) any other material obligation of Subtenant hereunder, then the total sum of such Fixed Rent so conditionally excused shall become due and payable during such calendar months by Subtenant to Sublandlord.  Notwithstanding the foregoing, if Subtenant shall default beyond the expiration of the applicable cure period (if any) with respect to any of the obligations described in the immediately preceding sentence, but shall promptly thereafter cure such default and reimburse Sublandlord any amounts due Sublandlord in connection with such default, then Sublandlord’s excusal of Fixed Rent for such calendar months shall be reinstated.  If, as of the Expiration Date, Subtenant shall not be in default beyond the expiration of the applicable cure period (if any) in the performance of any of Subtenant’s obligations under this Sublease, Sublandlord shall waive payment of all such Fixed Rent so conditionally excused.
 3.                  Quiet Enjoyment; Use of the Sublease Premises.  Subtenant may peacefully have, hold and enjoy the Sublease Premises, subject to the terms and conditions of this Sublease and those provisions of the Overlease incorporated herein by reference, and any leases and/or mortgages affecting the Building or the Overlease, provided that Subtenant pays the Fixed Rent and all Additional Charges and other charges herein recited to be paid by Subtenant and performs all of Subtenant’s covenants and agreements herein and in the Overlease (as the same are incorporated herein).  Subtenant shall use and occupy the Sublease Premises for general and executive offices in accordance with the terms and conditions of the Overlease (the “Permitted Use”), and for no other purpose, and further covenants not to do any act which will result in a violation of the Overlease. 
 4.                  Incorporation of Overlease Terms. 
 A.                All capitalized and other terms not otherwise defined herein shall have the meanings ascribed to them in the Overlease, unless the context clearly requires otherwise.  In the event of any conflict between the terms and conditions of this Sublease and the terms and conditions of the Overlease, then, as between Sublandlord and Subtenant, the terms and conditions of this Sublease shall control and prevail.  
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 B.                 Except as herein otherwise expressly provided, all of the terms, provisions, covenants and conditions contained in the Overlease are hereby made a part hereof.  The rights and obligations contained in the Overlease are, during the term of this subletting, hereby imposed upon the respective parties hereto, with Sublandlord being substituted for “Landlord”, and Subtenant being substituted for “Tenant”, with respect to the Overlease; provided, however, that Sublandlord shall not be liable to Subtenant for any failure in performance resulting from the failure in performance by Overlandlord under the Overlease of the corresponding covenant of the Overlease, and Sublandlord’s obligations hereunder are accordingly conditional where such obligations require such parallel performance by Overlandlord.  It is expressly agreed that Sublandlord shall not be obligated to perform any obligation which is the obligation of Overlandlord under the Overlease.  Sublandlord shall have no liability to Subtenant by reason of the default of Overlandlord under the Overlease.  Subtenant recognizes that Sublandlord is not in a position and shall not be required to render any of the services or utilities, to make repairs, replacements, restorations, alterations or improvements or to perform any of the obligations required of Overlandlord by the terms of the Overlease.  Subtenant also recognizes that any representations, warranties and/or covenants that are made by Overlandlord to Sublandlord in the Overlease and, by virtue of this Subparagraph 4B, incorporated herein, shall, as between Sublandlord and Subtenant, be based solely on the representations, warranties and covenants made by Overlandlord to Sublandlord under the Overlease, and that any certifications that Sublandlord shall be required to deliver with respect to any such matters shall be based solely on the certifications delivered by Overlandlord to Sublandlord under the Overlease.  Sublandlord agrees, however, to use reasonable efforts to enforce Sublandlord’s rights against Overlandlord under the Overlease for the benefit of Subtenant upon Subtenant’s written request therefor (and to forward to Overlandlord any notices or requests for consent as Subtenant may reasonably request).  Subtenant shall promptly reimburse Sublandlord for any and all reasonable costs which Sublandlord shall incur in expending such efforts, and Subtenant does hereby indemnify and agree to hold Sublandlord harmless from and against any and all claims, liabilities, damages, costs and expenses (including, without limitation, reasonable attorney’s fees and disbursements) incurred by Sublandlord in expending such efforts.  Nothing contained in this Subparagraph 4B shall require Sublandlord to institute any suit or action to enforce any such rights.  Subtenant acknowledges that the failure of Overlandlord to provide any services or comply with any obligations under the Overlease shall not entitle Subtenant to any abatement or reduction in Rent payable hereunder. 
 C.                 Wherever the Overlease refers to the “Lease”, such references for the purposes hereof shall be deemed to refer to this Sublease.
 D.                Wherever the Overlease refers to the “Landlord”, such references for the purposes hereof shall be deemed to refer to “Sublandlord” (except as otherwise provided herein).
 E.                 Wherever the Overlease refers to the “Tenant”, such references for the purposes hereof shall be deemed to refer to “Subtenant”).
 F.                  Wherever the Overlease refers to the “Demised Premises”, such references for the purposes hereof shall be deemed to refer to the Sublease Premises. 
 G.                Wherever the Overlease refers to “Base Rent”, such references for the purposes hereof shall be deemed to refer to Fixed Rent.
 H.                Wherever the Overlease refers to “Additional Rent”, such references for the purposes hereof shall be deemed to refer to Additional Charges.
 I.                   Wherever the Overlease refers to “Operating Expenses”, such references for the purposes hereof shall be deemed to refer to Overlease Operating Expenses.
   
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 J.                   Wherever the Overlease refers to “Tenant’s Share” or “Tenant’s Proportionate Share”, such references for the purposes hereof shall be deemed to refer to Subtenant’s Proportionate Share. 
 K.                Wherever the Overlease refers to “Operating Expense Escalation Year”, such references for the purposes hereof shall be deemed to refer to a Comparison Year.
 L.                 Wherever the Overlease refers to the “Real Estate Tax Base Year”, such references for the purposes hereof shall be deemed to refer to the Base Tax Year.
 M.               Wherever the Overlease refers to the “Base Operating Expense Year”, such references for the purposes hereof shall be deemed to refer to the Base Operating Expenses.
 N.                All references in the Overlease to the “Rent Commencement Date” shall be deemed deleted. 
 O.                All references in the Overlease to the “Broker” shall be deemed to mean Jones Lang LaSalle Brokerage, Inc. and Bloom Real Estate Group LLC.
 P.                  Wherever the Overlease refers to “Tenant’s Business”, such references for the purposes hereof shall be deemed to mean the design, manufacture and sale of LED digital signage display and LED lighting solutions.
 Q.                Wherever the Overlease refers to the “Term End Date”, such references for the purposes hereof shall be deemed to mean November 29, 2017.
 R.                 Wherever the Overlease refers to a “notice” or other communications or deliveries to be given or made by a party, such references for the purposes hereof shall be deemed to refer to a notice described in Subparagraph 25A of this Sublease.  
 S.                  Sublandlord represents that, to the best knowledge of Sublandlord, as of the date hereof, the Overlease annexed hereto as Exhibit B  and made a part hereof is a true and complete copy of the Overlease, except as to (a) certain intentionally omitted provisions, which provisions are expressly made inapplicable to Subtenant and the Sublease Premises, and (b) as to portions of Exhibit B thereof. 
 5.                  Non-Applicability of Certain Provisions of the Overlease.  The following provisions of the Overlease shall not be incorporated in this Sublease by reference:  
 (i)                 the following definitions in Article 1 and any and all references thereto elsewhere in the Overlease:  Existing Lease; Landlord’s Account; Landlord’s Work; and Security Depository;
 (ii)               the following provisions of the Overlease:  any and all references to the “Construction Period Partial Rent Abatement”; any and all references to the “Tenant Allowance”; Section 2.01; Section 2.02 (other than the third sentence thereof, which is specifically incorporated by reference herein); the phrase “Subject only to the provisions of Section 7.04 hereof” at the beginning of Section 4.01; 5.02; the portion of the sixth sentence of Section 7.01 beginning with the word “except” and continuing through and including the remainder of said sixth sentence; the seventh sentence of Section 7.01; and Article 29.
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 6.                  Sublease Subject to Overlease.  
 A.                This Sublease is expressly made subject and subordinate to all of the terms and conditions of the Overlease and to all items and matters which the Overlease is subject and subordinate, except as specifically provided to the contrary in this Sublease, to the extent applicable to the Sublease Premises.  Subtenant hereby assumes and covenants that, throughout the Term, Subtenant shall observe and perform, all of the provisions of the Overlease, to the extent applicable to the Sublease Premises, which are to be observed and performed by the tenant thereunder.  Subtenant covenants that Subtenant shall not do any act, matter or thing which will be, result in, or constitute a violation or breach of or a default under the Overlease; it being expressly agreed to by Subtenant that any such violation, breach or default shall constitute a material breach by Subtenant of a substantial obligation under this Sublease.  Subtenant hereby agrees that Subtenant shall indemnify and hold Sublandlord harmless from and against all claims, liabilities, penalties and expenses, including, without limitation, reasonable attorneys’ fees and disbursements, arising from or in connection with any default by Subtenant in Subtenant’s performance of those terms, covenants and conditions of the Overlease which are or shall be applicable to Subtenant, as above provided, and all amounts payable by Subtenant to Sublandlord on account of such indemnity shall be deemed to be Additional Charges hereunder and shall be payable upon demand.  In any case where the consent or approval of Overlandlord shall be required pursuant to the Overlease, Sublandlord’s consent shall also be required hereunder.  
 B.                 Subtenant covenants and agrees that if, by reason of a default on the part of Sublandlord (as the tenant under the Overlease) under the Overlease, the Overlease or the leasehold estate created thereunder is terminated, then Subtenant will, at the option of Overlandlord, which shall be exercised in the sole and absolute discretion of the Overlandlord, attorn to Overlandlord on the terms and conditions set forth in this Sublease, and will recognize Overlandlord as Subtenant’s landlord under this Sublease, provided that Overlandlord accepts such attornment, having no obligation to do so, in which event Overlandlord shall assume all prospective obligations of Sublandlord under this Sublease, provided that under no circumstances shall Overlandlord be liable for any brokerage commission due in connection with this Sublease or any renewal or extension thereof, and Overlandlord shall not be (i) liable in any way to Subtenant for any act or omission, neglect or default on the part of Sublandlord under this Sublease, (ii) responsible for any monies owing by, or on deposit with, Sublandlord for the credit of Subtenant, whether in the nature of security or otherwise, unless and to the extent such monies are delivered to Overlandlord, (iii) subject to any offset or counterclaim which theretofore accrued to Subtenant against Sublandlord, (iv) bound by any previous prepayment of rent or additional rent for more than one month except in the nature of a security deposit, or (v) responsible for the performance or completion of any work to be done by Sublandlord under this Sublease to render the Sublease Premises ready for occupancy by Subtenant.  
 C.                 Subtenant agrees to be bound, for all purposes of this Sublease, by any modifications or amendments to the Overlease.  Sublandlord agrees not to amend or modify the Overlease in any way that would discriminate against Subtenant, or which would increase Subtenant’s monetary obligations hereunder, shorten the term hereof or decrease Subtenant’s rights with respect to the Permitted Use of the Sublease Premises, or which would otherwise materially adversely affect Subtenant’s rights or obligations hereunder or permit the same to be cancelled or terminated, without Subtenant’s prior written consent, provided, however, that Sublandlord shall have the right to terminate this Sublease, and this Sublease shall be deemed terminated, in the event that the Overlease is terminated in accordance with the provisions of Article 10 or Article 11 of the Overlease.
  
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 D.                Sublandlord shall not be required to dispute any determinations or other assertions or claims of Overlandlord regarding the obligations of Sublandlord under the Overlease for which Subtenant is responsible under the terms of this Sublease.  Notwithstanding the foregoing, Sublandlord, at Subtenant’s sole cost and expense, agrees upon written request from Subtenant to promptly exercise commercially reasonable good faith efforts to take such action as is reasonably requested by Subtenant to dispute any such determinations, assertions or claims of Overlandlord or to otherwise cause Overlandlord to perform its obligations under the Overlease for the benefit of Subtenant, including with respect to the obtaining of any required consent of Overlandlord.   Subtenant shall promptly reimburse Sublandlord for any and all out-of-pocket costs which Sublandlord shall incur in expending such efforts on behalf of Subtenant pursuant to this Subparagraph 6D (or pursuant to Subsection 6E below) and Subtenant does hereby indemnify and agree to hold Sublandlord harmless from and against any and all claims, liabilities, damages, costs and expenses (including, without limitation, reasonable attorneys’ fees and disbursements) incurred by Sublandlord in expending such efforts.
 E.                 If Overlandlord shall default under any of the provisions of the Overlease, such default shall not constitute a default by Sublandlord under this Sublease and Sublandlord shall not be obligated to cure Overlandlord’s default.  Except as otherwise provided in Subparagraph 6D above or in this Subparagraph 6E, Sublandlord shall have no obligation to enforce any right or remedy under the Overlease for Subtenant’s benefit and Sublandlord shall have no liability to Subtenant for any default under the Overlease by Overlandlord, even if such default causes an interruption of services or utilities serving the Sublease Premises or terminates the term of the Overlease before its scheduled expiration.  Notwithstanding the foregoing, if Overlandlord defaults in any of its obligations under the Overlease, including, without limitation, any failure of Overlandlord to consent to a request by Subtenant, then, after written request from Subtenant, Sublandlord shall, in accordance with this Subparagraph 6E or Subparagraph 6D above, use commercially reasonable good faith efforts to take timely and appropriate action for the enforcement of Sublandlord’s rights against Overlandlord.  If Sublandlord has used such commercially reasonable good faith efforts as set forth in the preceding sentence, but Overlandlord has not performed its obligations under the Overlease, Subtenant shall have the right, at Subtenant’s sole cost and expense, to take any lawful action in its own name and, for that purpose and only to such extent, all of the rights of Sublandlord to enforce the obligations of Overlandlord under the Overlease are hereby conferred upon and are conditionally assigned to Subtenant and Subtenant hereby is subrogated to such rights (including, without limitation, the benefit of any recovery or relief); provided, however that Subtenant shall only have such rights if Subtenant shall not be in default beyond applicable notice and grace periods under this Sublease.  Subtenant shall indemnify and hold Sublandlord harmless from and against any and all losses, costs, liability, claims, damages, expenses (including, without limitation, reasonable attorneys’ fees and disbursements), penalties and fines that Sublandlord may incur in connection with or arising out of the taking of any such action by Subtenant.
  
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 7.                  Provision of Services; Overlandlord Actions.  
 A.                Sublandlord shall not be liable for any damage or loss, directly or indirectly resulting from, nor shall the Fixed Rent herein reserved or any Additional Charges be abated or a constructive or other eviction be deemed to have occurred by reason of (x) any installation, use or interruption of use of any equipment in connection with the furnishing or supplying of any services or (y) any failure or delay in furnishing any services for any reason whatsoever.  Neither Sublandlord, nor its employees or agents shall be liable to Subtenant for any damage, injury, loss or claim (including claims for the interruption of or loss to Subtenant’s business) based on or arising out of any cause whatsoever including, without limitation, the following:  repair to any portion of the Sublease Premises; interruption in the use of the Sublease Premises or any equipment therein; any accident or damage resulting from any use or operation (whether by Sublandlord, Subtenant or any other person or entity) of elevators or heating, cooling, electrical, sewage or plumbing equipment or apparatus; termination of the Sublease Term by reason of damage to or condemnation of the Sublease Premises in accordance with the provisions of Paragraphs 15 or 16 below or by reason of Overlandlord’s termination of the Prime Lease by reason of such damage or condemnation; fire, robbery, theft, vandalism, mysterious disappearance or any other casualty; actions of any other tenant or occupant of the Building or of any other person or entity; failure or inability to furnish any service or utility; and leakage in any part of the Sublease Premises from water, rain, ice or snow that may leak into, or flow from, any part of the Sublease Premises, or from drains, pipes or plumbing fixtures in the Sublease Premises.  Any property placed by Subtenant or its employees, agents, contractors, guests or invitees in or about the Sublease Premises shall be at the sole risk of Subtenant, and Sublandlord shall not in any manner be responsible therefor. 
 B.                 Subtenant acknowledges and agrees that Sublandlord shall not be responsible for a breach of any of the representations and warranties of the Overlandlord under the Overlease.  In addition, Sublandlord and Subtenant acknowledge and agree that Sublandlord is not responsible or liable for making any repairs or otherwise complying with any of Overlandlord’s obligations or providing any of the services and/or utilities required to be provided by Overlandlord under the Overlease.  Subject to the provisions of Subparagraphs 6D and 6E above, Subtenant agrees to look solely to Overlandlord for the breach of such representations and warranties or the making of such repairs, complying with such obligations or providing any such services and/or utilities. 
 8.                  Compliance with Laws.  Supplementing the provisions of Article 5 of the Overlease that have been incorporated into this Sublease, Subtenant shall pay all costs, expenses, fines, penalties and damages which may be imposed upon Sublandlord, Overlandlord, and/or any mortgagee or ground lessor under any ground or underlying lease affecting the Building by reason of or arising out of Subtenant’s failure fully and promptly to comply with the provisions of said Article 5 of the Overlease.
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 9.                  Alterations.  Modifying (to the extent of any inconsistency between such provisions and this Paragraph 9) the provisions of Article 7 of the Overlease that have been incorporated into this Sublease:
 A.                Any and all Alterations proposed to be made by Subtenant in the Sublease Premises (including, without limitation, Subtenant’s Work (as hereinafter defined)) shall be subject to:  (i) Sublandlord’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed, provided that (x) such Alteration is non-structural, and (y) such Alteration does not affect or involve any portion of the Building or the Building systems outside of the Sublease Premises; and (ii) if and to the extent Overlandlord’s consent would be required under the Overlease if Sublandlord, as tenant under the Overlease, were making such Alterations, Overlandlord’s prior written consent.
 B.                 In any instance where Overlandlord’s consent to an Alteration proposed to be made by Subtenant shall be required, and Overlandlord shall withhold such consent, then Sublandlord’s consent to such Alteration shall be deemed withheld, and Sublandlord shall not be deemed unreasonable in withholding such consent.
 10.              Intentionally omitted. 
 11.              Insurance.  Modifying (to the extent of any inconsistency between such provisions and this Paragraph 11) the provisions of Article 9 of the Overlease:
 A.                Subtenant shall, at its own cost and expense, obtain, maintain and keep in force during the Term for the benefit of Sublandlord, Subtenant, Overlandlord and such other parties as are named in the Overlease, the coverage required under Article 9 of the Overlease.  Whenever in Sublandlord’s reasonable judgment, good business practice and changing conditions indicate a need for additional or different types of insurance coverage, Subtenant shall, upon Sublandlord’s request, promptly obtain such insurance coverage, at Subtenant’s expense.
 B.                 Sublandlord, Overlandlord and such other parties as are required to be named pursuant to the Overlease, including, without limitation, Overlandlord’s agents and any mortgagee or lessor or lessee under any ground or underlying lease, shall be named as additional insureds in said policies and shall be protected against all liability occasioned by an occurrence insured against.  All of said policies of insurance shall be: (i) written as “occurrence” policies, (ii) written as primary policy coverage and not contributing with or in excess of any coverage which Sublandlord may carry, and (iii) issued by insurance companies which are rated not less than “A:XII” in Best’s Key Rating Guide and which are otherwise reasonably satisfactory to Sublandlord, and which are licensed to do business in the State of New York. Said policies shall also provide that the insurer will give Sublandlord at least 30 days prior written notice of cancellation of said policy or of any material modification thereof, and shall comply with all of the provisions of Article 9 of the Overlease.  Subtenant shall deliver to Sublandlord the policies of insurance or certificates thereof, together with evidence of the payment of premiums thereon, prior to the Commencement Date, and shall thereafter furnish to Sublandlord, at least 20 days prior to the expiration of any such policies and any renewals thereof, a new policy or certificate in lieu thereof, with evidence of the payment of premiums thereon.
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 C.                 Subtenant shall pay all premiums and charges for all of said policies, and, if Subtenant shall fail to make any payment when due or carry any such policy, Sublandlord may, but shall not be obligated to, make such payment or carry such policy, and the amount paid by Sublandlord, with interest thereon at the interest rate specified in the Overlease for late payment of Base Rent from the date of such payment or the issuance of such policy, shall be repaid to Sublandlord by Subtenant on demand, and all such amounts so repayable, together with such interest, shall be deemed to constitute Additional Charges hereunder.  Payment by Sublandlord of any such premium, or the carrying by Sublandlord of any such policy, shall not be deemed to waive or release the default of Subtenant with respect thereto.
 D.                The waiver granted by Subtenant pursuant to Section 9.05 of the Overlease, as incorporated herein by reference, shall run in favor of Sublandlord, Overlandlord and such other parties as are named in the Overlease.
 E.                 Notwithstanding anything to the contrary contained in Article 9 of the Overlease, and notwithstanding the limits of insurance specified in this Paragraph 11, Subtenant agrees to defend, indemnify and hold harmless Sublandlord, and the agents, partners, shareholders, directors, officers and employees of Sublandlord, from and against all damage, loss, liability, cost and expense (including, without limitation, engineers’, architects’ and attorneys’ fees and disbursements) resulting from any of the risks referred to in this Paragraph 11 and said Article 9.  Such indemnification shall operate whether or not Subtenant has placed and maintained the insurance specified in this Paragraph 11, and whether or not proceeds from such insurance (such insurance having been placed and maintained) actually are collectible from one or more of the aforesaid insurance companies; provided, however, that Subtenant shall be relieved of its obligation of indemnity herein pro tanto of the amount actually recovered by Sublandlord from one or more of said insurance companies by reason of injury or damage to or loss sustained in the Sublease Premises or in or about the Building.  
 12.              Non-Liability and Indemnification.   
 A.                Neither Sublandlord nor Sublandlord’s agents shall be liable for:  (i) any damage to property of Subtenant or of others entrusted to employees of Sublandlord or to Sublandlord’s agents, nor for the loss or damage to any property of Subtenant or of any of Subtenant’s agents, employees or contractors by theft or otherwise; (ii) any injury or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity, water, rain, snow or leaks from any part of the Building or from the pipes, appliances or plumbing works or from the roof, street or sub-surface or from any other place or by dampness or by any other cause of whatsoever nature; (iii) any such damage caused by other tenants or persons in the Building or caused by operations in construction of any private, public or quasi-public work; or (iv) any latent defect in the Sublease Premises or in the Building. 
   
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 B.                 Subtenant agrees, irrespective of whether Subtenant shall have been negligent in connection therewith, to indemnify, protect, defend and save harmless, Overlandlord, Sublandlord and Overlandlord’s and Sublandlord’s respective partners, officers, directors, contractors, agents and employees (individually and collectively, the “Indemnified Party”) from and against any and all liability (statutory or otherwise), claims, suits, demands, damages, judgments, costs, fines, penalties, interest and expenses (including reasonable counsel and other professional fees and disbursements incurred in any action or proceeding, whether between Subtenant and the Indemnified Party, or between the Indemnified Party and any third party or otherwise), to which any such Indemnified Party may be subject or suffer arising from, or in connection with:  (i) any liability or claim for any injury to, or death of, any person or persons, or damage to property (including any loss of use thereof), occurring in or about the Sublease Premises during the Term and during the period of time, if any, prior to the Commencement Date that Subtenant may have been given access to the Sublease Premises, unless caused by the gross negligence of Sublandlord, or (ii) the use and occupancy of the Sublease Premises, or from any work, installation or thing whatsoever done or omitted in or about the Sublease Premises during the Term and during the period of time, if any, prior to the Commencement Date that Subtenant may have been given access to the Sublease Premises, or (iii) any default by Subtenant in the performance of Subtenant’s obligations under this Sublease, or (iv) any act, omission, carelessness, negligence or misconduct of Subtenant or of any of Subtenant’s agents, employees or contractors. 

 13.              Access; Change in Facilities.  Supplementing the provisions of Article 14 of the Overlease, Subtenant hereby (i) acknowledges the rights granted to Overlandlord and other parties pursuant to Article 14 of the Overlease, (ii) agrees that neither Sublandlord nor Overlandlord shall have any liability to Subtenant in connection with the exercise of such rights in accordance with said Article 14, and (iii) agrees to cooperate with Overlandlord to the extent that Sublandlord, as tenant under the Overlease, is required to cooperate with Overlandlord pursuant to the provisions of said Article 14.
 14.              Damage or Destruction.  Modifying (to the extent of any inconsistency between such provisions and this Paragraph 14) and supplementing those provisions of Article 10 of the Overlease:
 A.                If, as a result of all or a portion of the Sublease Premises being damaged or rendered untenantable by fire or other casualty, Sublandlord, as tenant under the Overlease, shall be entitled to a rent abatement with respect to such damaged portion of the Sublease Premises pursuant to Article 10 of the Overlease, the Rent under this Sublease shall also abate.
 B.                 The provisions of this Paragraph 14 shall be considered an express agreement governing any case of damage to or destruction of the Building or any part thereof by fire or other casualty, and any law now or hereafter in force which is inconsistent with the provisions of this Paragraph 14 shall have no application in such case.
 15.              Eminent Domain.  Modifying (to the extent of any inconsistency between such provisions and this Paragraph 15) and supplementing those provisions of Article 11 of the Overlease:
 A.                In the event that all of the Sublease Premises shall be acquired or condemned by eminent domain, this Sublease shall terminate as of the earliest of:  (i) the date of the vesting of title in the condemning authority; (ii) the date that Subtenant is dispossessed by the condemning authority; and (iii) the date that the Overlease shall be terminated pursuant to Article 11 thereof, as if said date were the Expiration Date.  
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 B.                 If only a portion of the Sublease Premises shall be so acquired or condemned then, unless the Sublease shall be terminated by virtue of the Overlease having been terminated pursuant to the terms of Article 11 thereof, this Sublease shall continue in full force and effect.  In such case, if Sublandlord, as tenant under the Overlease, shall be entitled to a rent abatement with respect to such taken portion of the Sublease Premises pursuant to Article 11 of the Overlease, the Rent under this Sublease shall also abate.
 C.                 In the event of any such acquisition or condemnation of all or part of the Sublease Premises, (i) Subtenant shall not receive any portion of the award for any such acquisition or condemnation, and (ii) Subtenant shall have no claim against Sublandlord or Overlandlord for the value of any unexpired portion of the Term and agrees not to join in any claim made by Overlandlord or Sublandlord and to execute all further documents that may be required in order to facilitate the collection of the award by Overlandlord.  Notwithstanding the foregoing, provided that, in the exercise of Sublandlord’s reasonable business judgment, neither Overlandlord nor Sublandlord will be adversely affected, Subtenant shall have the right to make a separate claim for Subtenant’s trade fixtures or moving expenses.
 16.              At End of Term.  Modifying (to the extent of any inconsistency between such provisions and this Paragraph 16) the provisions of Article 28 of the Overlease, as such provisions are applicable to the Sublease Premises:
 A.                Upon the expiration or sooner termination of this Sublease, Subtenant shall vacate and surrender the Sublease Premises in broom-clean condition, restore the Sublease Premises to its condition prior to Subtenant’s entry onto the Sublease Premises, and shall forthwith repair any damage to the Sublease Premises caused by any permitted or required removal from the Sublease Premises of any of Subtenant’s furniture, moveable trade fixtures, improvements or any other personal property so removed from the Sublease Premises.  Subtenant hereby appoints Overlandlord and Sublandlord as Subtenant’s attorney-in-fact and grants to Overlandlord and Sublandlord a limited power of attorney solely for the purpose of allowing Overlandlord or Sublandlord (as the case may be) to transfer title to any such property abandoned by Subtenant to Overlandlord or to Overlandlord’s designees, and Subtenant further acknowledges and agrees that neither Overlandlord nor Sublandlord shall be responsible for any loss or damage occurring to any such property owned by Subtenant.
 B.                 The parties recognize and agree that the damage to Sublandlord resulting from any failure by Subtenant to timely surrender possession of the Sublease Premises as aforesaid will be substantial and will exceed the amount of the monthly installments of the Fixed Rent payable hereunder.  Subtenant therefore agrees that if possession of the Sublease Premises is not surrendered to Sublandlord on the Expiration Date or sooner termination of this Sublease, in addition to any other right or remedy Sublandlord may have hereunder or at law or in equity, Subtenant shall pay to Sublandlord for each month and for each portion of any month during which Subtenant holds over in the Sublease Premises after the Expiration Date or sooner termination of this Sublease, a sum equal to two times the aggregate of the portion of the Fixed Rent and Recurring Additional Charges which were payable under this Sublease with respect to the last month of the Term.  In addition to making all required payments under this Subparagraph 16B, Subtenant shall, in the event of Subtenant’s failure to surrender the Sublease Premises in accordance with Article 28 of the Overlease, as modified by this Paragraph 16 and in the manner aforesaid, also indemnify and hold Sublandlord harmless from and against any and all cost, expense, damage, claim, loss or liability resulting from any delay or failure by Subtenant in so surrendering the Sublease Premises, including any consequential damages suffered by Sublandlord and any claims made by any succeeding occupant founded on such delay or failure, and any and all reasonable attorneys’ fees, disbursements and court costs incurred by Sublandlord in connection with any of the foregoing.  Nothing herein contained shall be deemed to permit Subtenant to retain possession of the Sublease Premises after the Expiration Date or sooner termination of this Sublease, and no acceptance by Sublandlord of payments from Subtenant after the Expiration Date or sooner termination of this Sublease shall be deemed to be other than on account of the amount to be paid by Subtenant in accordance with the provisions of this Paragraph 16, which provisions shall survive the Expiration Date or sooner termination of this Sublease.
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 17.              Intentionally omitted.   
 18.              Rules and Regulations.  Subtenant shall, and Subtenant shall cause all of Subtenant’s agents, employees, licensees and invitees to, fully and promptly comply with all requirements of the rules and regulations of the Building.  Subtenant acknowledges that Overlandlord shall at all times have the right to change such rules and regulations and/or Building services or to promulgate other rules and regulations and/or Building services in such manner as may be reasonable for safety, care or cleanliness of the Building and related facilities or premises, and for preservation of good order therein, all of which rules and regulations and/or Building services, changes and amendments will be forwarded to Subtenant in writing (to the extent received in writing by Sublandlord) and shall be carried out and observed by Subtenant.  Subtenant shall further be responsible for the compliance with such rules and regulations and/or Building services by the employees, servants, agents, visitors, licensees and invitees of Subtenant.  In the event of any conflict between the provisions of this Sublease and the provisions of such rules and regulations, then the provisions of such rules and regulations shall control.
 19.              Estoppel Certificates.   
 A.                At any time and from time to time before or during the Term, Subtenant shall, within three days after request by Sublandlord, execute, acknowledge and deliver to Sublandlord a statement in writing addressed to Sublandlord and/or to such other party(ies) as Sublandlord may designate:  (i) certifying that this Sublease is unmodified and in full force and effect (or, if there have been modifications, that the same is in full force and effect as modified and stating the modifications), (ii) stating the dates to which the Fixed Rent, Additional Charges and other charges have been paid, (iii) stating whether or not, to the best knowledge of the signer of such certificate, there exists any default by either party in the performance of any covenant, agreement, term, provision or condition contained in this Sublease, and, if so, specifying each such default of which the signer may have knowledge, and (iv) setting forth such other information as Sublandlord may request concerning this Sublease, it being intended that any such statement delivered pursuant to this Subparagraph 19A may be relied upon by Sublandlord or by an assignee of Sublandlord’s interest.  
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 B.                 Sublandlord agrees, in connection with any proposed assignment of this Sublease or subletting of the Sublease Premises by Subtenant, upon not less than 20 days prior notice by Subtenant, to execute, acknowledge and deliver to Subtenant a statement in writing addressed to Subtenant:  (i) stating that this Sublease is then in full force and effect and has not been modified (or if modified, setting forth all modifications), (ii) setting forth, to the best knowledge of Sublandlord (but without having made any independent investigation), the date to which the Fixed Rent and Recurring Additional Charges have been paid, and (iii) stating whether or not, to the best knowledge of Sublandlord (but without having made any independent investigation), Subtenant is in default under this Sublease, and, if Subtenant is in default, identifying all such defaults.  Notwithstanding the foregoing, Sublandlord shall not be obligated to furnish Subtenant with more than one (1) such statement during any twelve (12) month period.
 20.              No Personal Liability.  The liability of Sublandlord for any default by Sublandlord under the terms of this Sublease shall be limited to the interest of Sublandlord in the Sublease Premises, including Sublandlord’s interest in any rental income, condemnation proceeds or insurance awards then being held by Sublandlord at the time of enforcement of any judgment against Sublandlord.  In no event shall Subtenant (or any person or entity claiming by, through or under Subtenant) make any claim against the direct or indirect shareholders, officers, directors, individuals, partners, members or joint venturers of Sublandlord for any deficiency, nor shall any direct or indirect shareholders, officers, directors, individuals, partners, members or joint venturers of Sublandlord, Overlandlord or the lessor under any ground or underlying lease have or be subject to levy, attachment or other enforcement of a remedy sought by Subtenant or anyone claiming by, through or under Subtenant for any breach or claim hereunder.
 21.              No Recording.  Neither party shall have the right to record this Sublease, and the same shall not be recorded.
 22.              No Assignment or Subletting. 
 A.                Subtenant, on its own behalf and on behalf of its heirs, distributees, executives, administrators, legal representatives, successors and assigns, covenants and agrees that Subtenant shall not, by operation of law or otherwise: (i) assign, whether by merger, consolidation or otherwise, mortgage or encumber its interest in this Sublease, in whole or in part, or (ii) sublet, or permit the subletting of, the Sublease Premises or any part thereof, or (iii) permit the Sublease Premises or any part thereof to be occupied or used for desk space, mailing privileges or otherwise by any person or entity other than Subtenant without the prior written consent of Sublandlord (which may be granted or withheld in Sublandlord’s sole and absolute discretion) and of Overlandlord in each instance.  Any violation of the provisions of this Subparagraph 22A shall constitute a default under this Sublease.
   
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 B.                 If Subtenant shall desire to sublet all or any portion of the Sublease Premises, Subtenant shall submit to Sublandlord a written request for Sublandlord’s consent to such assignment or subletting, which request shall be accompanied by the following information:  (i) the name and address of the proposed subtenant; (ii) if Subtenant desires to sublet only a portion of the Sublease Premises, a description of the portion to be sublet, together with a floor plan thereof; (iii) the terms and conditions of the proposed subletting; (iv) the nature and character of the business of the proposed subtenant and its proposed use of the Sublease Premises; and (v) current financial information and any other information Sublandlord may reasonably request with respect to the proposed subtenant, including, without limitation, its most recent financial statement or report. Sublandlord, by notice given to Subtenant within 30 days after receipt of Subtenant’s request for consent to any sublease of the whole of the Sublease Premises, may terminate this Sublease on a date to be specified in said notice (the “Termination Date”), which date shall be not earlier than one day before the effective date of the proposed subletting nor later than 61 days after said effective date.  Subtenant shall vacate and surrender the Sublease Premises on or before the Termination Date as if it were the Expiration Date.  If Subtenant proposes to sublet only a portion of the Sublease Premises, Sublandlord, by notice given to Subtenant within 30 days after receipt of Subtenant’s request for consent, may elect to eliminate such portion of the Sublease Premises (said portion hereinafter called the “Eliminated Space”) from the Sublease Premises during the period (hereinafter called the “Elimination Period”) commencing on the date (hereinafter called the “Elimination Date”) immediately prior to the proposed commencement date of the term of the proposed subletting, and ending on the proposed expiration date of the term of the proposed subletting, and in the event such notice is given:  (a) the Eliminated Space shall be eliminated from the Sublease Premises during the Elimination Period; (b) Subtenant shall surrender the Eliminated Space to Sublandlord on or prior to the Elimination Date in the same manner as if said Elimination Date were the Expiration Date; (c) if the Eliminated Space shall constitute less than an entire floor, Sublandlord, at Sublandlord’s expense, shall have the right to make any alterations and installations in the Sublease Premises required, in Sublandlord’s reasonable judgment, to make the Eliminated Space a self-contained rental unit with access through corridors to the elevators and core toilets serving the Eliminated Space, and Sublandlord and any tenant or other occupant of the Eliminated Space shall have the right to use the core toilets and any corridors providing access from the Eliminated Space to the core area in common with Subtenant and any other permitted occupants of the Sublease Premises, and the right to install signs and directional indicators in or about such corridors indicating the name and location of such tenant or other occupant; (d) during the Elimination Period, (x) the Fixed Rent shall be reduced in the proportion which the area of the Eliminated Space bears to the total area of the Sublease Premises immediately prior to the Elimination Date (including an equitable portion of the area of any corridors referred to in clause (c) of this sentence as part of the area of the Eliminated Space for the purpose of computing such reduction), and (y) any prepaid portion of Fixed Rent and Additional Charges for any period after the Elimination Date allocable to the Eliminated Space shall be refunded by Sublandlord to Subtenant; (e) if the Elimination Period shall end prior to the Expiration Date, the Eliminated Space, in its then existing condition, shall be deemed restored to and once again a part of the Sublease Premises during the period (hereinafter called the “Restoration Period”) commencing on the date next following the expiration of the Elimination Period and ending on the Expiration Date, except if Sublandlord is unable to give Subtenant possession of the Eliminated Space at the expiration of the Elimination Period by reason of the holding over or retention of possession of any tenant or other occupant, in which event (1) the Restoration Period shall not commence, and the Eliminated Space shall not be deemed restored to or a part of the Sublease Premises, until the date upon which Sublandlord shall give Subtenant possession of such Eliminated Space free of occupancies, (2) neither the Expiration Date nor the validity of this Sublease shall be affected, and (3) Subtenant waives any rights under law to rescind this Sublease and further waives the right to recover any damages which may result from the failure of Sublandlord to deliver possession of the Eliminated Space at the end of the Elimination Period; and (f) during the Restoration Period, if any, the Fixed Rent shall be increased in the proportion which the area of the Eliminated Space bears to the total area of the Sublease Premises immediately prior to the commencement of the Restoration Period (including an equitable portion of the area of any corridors referred to in clause (c) of this sentence as part of the area of the Eliminated Space for the purpose of computing such increase).  At the request of Sublandlord, Subtenant shall execute and deliver an instrument or instruments, in form satisfactory to Sublandlord, setting forth any modifications to this Sublease contemplated in or resulting from the operation of the foregoing provisions of this Subparagraph 22B; however, neither Sublandlord’s nor Subtenant’s failure to execute or deliver any such instrument shall vitiate the effect of the foregoing provisions of this Subparagraph 22B.  

   
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 C.                 Notwithstanding anything to the contrary contained in this Paragraph 22, if Sublandlord does not exercise its right to terminate this Sublease or to eliminate the Eliminated Space from the Sublease Premises pursuant to Subparagraph 22B above, provided that Subtenant is not in default under any of the terms, covenants and conditions of this Sublease, Subtenant shall have the right to sublet any portion of the Sublease Premises, subject to all of the following terms and conditions: 
 (i)                 Subtenant shall have complied with the provisions of the Overlease and shall obtain, prior to the effective date of such sublease, the consent of Overlandlord to such sublease;
 (ii)               Subtenant shall obtain the prior written consent of Sublandlord to such proposed sublease, which consent shall not be unreasonably withheld, it being agreed and understood that in any instance where Overlandlord shall withhold consent to such proposed sublease, then Sublandlord’s consent to such proposed sublease shall be deemed withheld, and Sublandlord shall not be deemed unreasonable in withholding such consent;
 (iii)             In Sublandlord’s reasonable judgment, the proposed subtenant is engaged in a business, and the Sublease Premises will be used in a manner, which (x) is in keeping with the then standards of the Building, (y) is limited to the use for the purposes set forth in this Sublease, and for no other purposes and (z) will not impose any additional material burden upon Overlandlord in the operation of the Building;
 (iv)             The proposed subtenant shall be reputable and shall have, in the reasonable judgment of Sublandlord, sufficient financial worth to perform the obligations of the subtenant under the sublease as evidenced by the presentation to Sublandlord of financial and other information regarding the proposed subtenant including, without limitation, its business experience, a current financial statement, and such other information as Sublandlord may reasonably request;
 (v)               Subtenant shall not have (x) negotiated or entered into a proposed subletting with any tenant, subtenant or occupant of any space in the Building or any person with whom Sublandlord is then negotiating (or with whom Sublandlord has, in the previous nine-month period, negotiated) to sublease space in the Building or with any person which directly or indirectly controls, or is controlled by, or is under common control with, any such tenant, subtenant or occupant or person with whom Sublandlord is then negotiating (or with whom Sublandlord has, in the previous nine-month period, negotiated), or (y) advertised or listed the Sublease Premises for subletting at a rental lower than the rental at which Sublandlord is then offering to rent space in the Building;
   
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 (vi)             No subletting shall be for a term ending later than one day prior to the expiration date of the term of this Sublease;
 (vii)           The sublease shall be subject and subordinate to all provisions of this Sublease and the Overlease and all of the rights of Sublandlord hereunder and of Overlandlord under the Overlease;
 (viii)         Subtenant shall deliver to Sublandlord a duplicate original of such sublease, duly executed and acknowledged by Subtenant and the subtenant, at the time Subtenant requests Sublandlord’s consent thereto;
 (ix)             The sublease shall provide that it is subject and subordinate to this Sublease and to the matters to which this Sublease is or shall be subordinate, and that, in the event of termination, re-entry or dispossession by Sublandlord under this Sublease, Sublandlord may, at its option, take over any of the right, title and interest of Subtenant, as sublessor, under such sublease, and the subtenant shall, at Sublandlord’s option, attorn to Sublandlord pursuant to the then executory provisions of such sublease, except that Sublandlord shall not (x) be liable for any previous act or omission of Subtenant under such sublease, (y) be subject to any counterclaim, offset or defense, which theretofore accrued to such subtenant against Subtenant, or (z) be bound by any previous modification of such sublease or by any previous prepayment of more than one (1) month’s rent (it being acknowledged and agreed, however, that the provisions of this Subparagraph 22C(ix) shall be self operative, and that no further instrument shall be required to give effect to this provision);
 (x)               The subtenant shall have no right whatsoever to further sublet the Sublease Premises or any portion thereof or to assign its interest in the sublease;
 (xi)             The subtenant shall not be entitled, directly or indirectly, to diplomatic or sovereign immunity and shall be subject to service of process in, and the jurisdiction of the courts of, the State of New York;
 (xii)           There shall not be more than two subtenants or occupants (including Subtenant) of the Sublease Premises; and
 (xiii)         No sublease shall be for less than 1,000 contiguous square feet of area, and shall be of a shape or configuration such that the area proposed to be sublet and the remainder of the Sublease Premises shall in Sublandlord’s reasonable judgment constitute a commercially marketable separate rental unit.
 D.                Subtenant shall reimburse Sublandlord on demand for all costs (including, without limitation, all reasonable legal fees and disbursements, as well as the costs of making investigations as to the acceptability of the proposed subtenant) which may be incurred by Sublandlord in connection with a request by Subtenant that Sublandlord consent to any proposed assignment or sublease. 
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 E.                 Subtenant hereby waives any claim against Sublandlord for money damages which Subtenant may have based upon any assertion that Sublandlord has unreasonably withheld or delayed any consent to a subletting pursuant to the provisions of this Sublease.  Subtenant agrees that its sole remedy shall be an action or proceeding to enforce such provisions or for specific performance. 
 F.                  If Sublandlord shall give its consent to any sublease of the Sublease Premises, Subtenant shall pay to Sublandlord, as Additional Charges, 100 percent of any and all Sublease Profits (as hereinafter defined).  For purposes of this Sublease, the term “Sublease Profits” shall be deemed to mean the amount by which (i) all rents, additional charges or other consideration payable under the sublease to, or in connection with the subletting by, Subtenant (including, but not limited to, sums paid for the sale or rental of Subtenant’s fixtures, leasehold improvements, equipment, furniture or other personal property less, in the case of the sale thereof, the then net unamortized or undepreciated cost of any such fixtures, leasehold improvements, equipment, furniture or other personal property which were provided and installed in the Sublease Premises at the sole cost and expense of Subtenant and for which Sublandlord has not given an allowance or other credit, determined on the basis of Subtenant’s federal income tax returns) after deducting therefrom the amount of any reasonable brokerage commission, attorney’s fees and advertising costs, and the reasonable cost of constructing demising walls in connection with the subletting of a portion of the Sublease Premises, if applicable, actually incurred by Subtenant in connection with such subletting, exceed the (ii) Fixed Rent and Recurring Additional Charges with respect to the portion of the Sublease Premises to be subleased accruing during the term of such sublease pursuant to the terms of this Sublease.  The sums payable under this Subparagraph 22F shall be paid to Sublandlord as and when payable by the subtenant to Subtenant. 
 G.                Any attempted assignment or subletting made contrary to the provisions of this Paragraph 22 shall be null and void.  No consent by Sublandlord or Overlandlord to any assignment or subletting shall in any manner be considered to relieve Subtenant from obtaining Sublandlord’s and Overlandlord’s express written consent to any further assignment or subletting.  The provisions of this Paragraph 22 shall apply to each and every sublease Subtenant proposes to enter into during the Term.  For the purposes of this Paragraph 22, “sublettings” shall be deemed to include all sub-sublettings as well as sublettings.
 H.                (i)         If Subtenant is a corporation, the direct or indirect transfer and/or exchange of 50 percent or more (aggregating all prior transfers) of the shares of Subtenant or of the shares of any corporation of which Subtenant is a direct or indirect subsidiary, including transfers by operation of law and including a related or unrelated series of transactions, shall be deemed an assignment of this Sublease for purposes of this Paragraph 22.
 (ii)               If Subtenant is a partnership, the direct or indirect transfer of 50 percent or more (aggregating all prior transfers) of the partnership interests of Subtenant, including transfers by operation of law and including a related or unrelated series of transactions, shall be deemed an assignment of this Sublease for all purposes of this Paragraph 22. 
 (iii)             If Subtenant is a limited liability company, the direct or indirect transfer of 50 percent or more (aggregating all prior transfers) of the membership interests of Subtenant, including transfers by operation of law and including a related or unrelated series of transactions, shall be deemed an assignment of this Sublease for all purposes of this Paragraph 22. 
   
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 I.          Subtenant specifically acknowledges that the provisions of Section 12.10 of the Overlease shall be applicable (with respect to both Overlandlord and Sublandlord) to any sublease of the Sublease Premises or assignment of this Sublease made by Subtenant, and Subtenant agrees to cooperate with Sublandlord in complying with the provisions of said Section 12.10 including, without limitation, by executing any statements required by Overlandlord thereunder.
 23.              Brokerage.  Subtenant represents and warrants to Sublandlord that no broker, other than Jones Lang LaSalle Brokerage, Inc. and Bloom Real Estate Group LLC (collectively, the “Broker”), was instrumental in consummating this Sublease, and that no conversations or prior negotiations were had with any broker other than the Broker concerning the subletting of the Sublease Premises.  Subtenant shall indemnify and hold Sublandlord harmless from and against any claims for brokerage commissions or similar fees claimed by any person or entity other than the Broker.  Sublandlord shall pay the Broker any commission due the Broker in connection with this Sublease pursuant to one or more separate agreements with the Broker.
 24.              Assignment of the Overlease.  The term “Sublandlord” as used in this Sublease means only the tenant under the Overlease, at the time in question, so that if Sublandlord’s interest in the Overlease is assigned, the assignor Sublandlord shall be thereupon released and discharged from all covenants, conditions and agreements of Sublandlord hereunder accruing with respect to the Overlease from and after the date of such assignment, but such covenants, conditions and agreements shall be binding on the assignee until thereafter assigned.  
 25.              Notices and Cure Periods; Conditions of Limitation and Remedies.  
 A.                All notices hereunder to Sublandlord or Subtenant shall be given in writing and delivered by hand, or by a reputable national overnight courier, to the addresses set forth below: 
  
                                     If to Sublandlord:
  
                                     Mizuho Securities USA Inc.
                                     320 Park Avenue
                                     12th Floor
                                     New York, New York  10022
                                     Attention:      General Counsel
  
   
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                                     with a copy to:
  
                                     Jonathan D. Blum, Esq., PC
                                     214 Riverside Drive
                                     Suite 605
                                     New York, New York  10025
  
                                     If to Subtenant (prior to the Commencement Date):
  
                                     Trans-Lux Corporation
                                     950 Third Avenue, Suite 2804
                                     New York, NY 10022
                                     Attention:  J.M. Allain, President and CEO
  
                                     With a copy to:
  
                                     Kristin Kreuder, Esq.
                                     44 Blue Spruce Circle
                                     Weston, CT  06883
  
                                     If to Subtenant (from and after the Commencement Date):
  
                                     Trans-Lux Corporation
                                     445 Park Avenue, 20th Floor
 New York, New York
                                     Attention:        J.M. Allain, President and CEO
  
                                     With a copy to:
  
                                     Kristin Kreuder, Esq.
                                     44 Blue Spruce Circle
                                     Weston, CT  06883
  
 B.                 By notice given in the aforesaid manner, either Party hereto may notify the other as to any change as to where and to whom such party’s notices are thereafter to be addressed.
 C.                 The effective date of any notice shall be the date of receipt of such notice (or the date that such receipt is refused, if applicable).  
   
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 D.                In connection with the incorporation by reference of notice and other time limit provisions of the Overlease into this Sublease (and except with respect to actions to be taken by Subtenant for which shorter time limits are specifically set forth in this Sublease, which time limits shall control for the purposes of this Sublease), the time limits provided in the Overlease for the giving or making of any notice by the tenant thereunder to Overlandlord, the holder of any mortgage, the lessor under any ground or underlying lease or any other party, or for the performance of any act, condition or covenant or the curing of any default by the tenant thereunder, or for the exercise of any right, remedy or option by the tenant thereunder, are changed for the purposes of this Sublease, by shortening the same in each instance:  (i) to 45 calendar days with respect to all such periods of 60 or more calendar or business days, (ii) to twenty calendar days with respect to all such periods of 30 or more calendar or business days but less than 60 calendar or business days, (iii) to ten calendar days with respect to all such periods of 20 or more calendar or business days but less than 30 calendar or business days, (iv) to five calendar days with respect to all such periods of ten or more calendar or business days but less than 20 calendar or business days, and (v) to two calendar days with respect to all such periods of five or more calendar or business days but less than ten calendar or business days; but in any and all events to a time limit enabling Sublandlord to give any notice, perform any act, condition or covenant, cure any default, and/or exercise any option within the time limit relating thereto as contained in the Overlease.  Subtenant shall, immediately upon receipt thereof, notify Sublandlord of any notice served by Overlandlord upon Subtenant under any of the provisions of the Overlease or with reference to the Sublease Premises.  Subtenant shall immediately furnish notice to Sublandlord of any action taken by Subtenant to cure any default under, or comply with any request or demand made by Overlandlord and/or Sublandlord in connection with the Overlease (pertaining to the Sublease Premises) or this Sublease. 

 26.              Condition of the Sublease Premises. 
 A.                It is understood and agreed that all understandings and agreements heretofore had between the parties are merged in this Sublease, which alone fully and completely expresses their agreements, and that the same are entered into after full investigation, neither party relying upon any statement or representation made by the other and not embodied in this Sublease.  Subtenant agrees to accept possession of the Sublease Premises in “as is” and “where is” condition on the Commencement Date and Sublandlord is not required to perform work of any kind, nature or description to prepare the Sublease Premises for Subtenant’s occupancy, other than Sublandlord’s Work.
 B.                 Subtenant acknowledges and agrees that any and all alterations, installations, renovations or other items of work necessary to prepare the Sublease Premises for Subtenant’s initial occupancy (“Subtenant’s Work”) shall be performed by Subtenant (subject to the provisions of Paragraph 9 above and the applicable provisions of the Overlease), at Subtenant’s sole cost and expense.
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 27.              Security. 
 A.                Upon the execution of this Sublease, but subject to the provisions of Subparagraph 27C below, Subtenant shall deposit with Sublandlord the sum of US$211,800.00 (the “Security Deposit Amount”), as security for the faithful performance and observance by Subtenant of all of the covenants, agreements, terms, provisions and conditions of this Sublease.  Subtenant agrees that, if Subtenant shall default, beyond the expiration of the applicable cure period (if any), with respect to any of the covenants, agreements, terms, provisions and conditions that shall be the obligation of Subtenant to observe, perform or keep under the terms of this Sublease, including the payment of the Fixed Rent and Additional Charges, Sublandlord may use, apply or retain the whole or any part of the security being held by Sublandlord (the “Security”) to the extent required for the payment of any Fixed Rent and Additional Charges, or any other payments as to which Subtenant shall be in default or for any monies which Sublandlord may expend or may be required to expend by reason of Subtenant’s default beyond the expiration of the applicable cure period (if any), with respect to any of the covenants, agreements, terms, provisions and conditions of this Sublease, including any damages or deficiency in the reletting of the Sublease Premises, whether such damages or deficiency accrued before or after summary proceedings or other re-entry by Sublandlord.  Sublandlord shall not be required to so use, apply or retain the whole or any part of the Security so deposited, but if the whole or any part thereof shall be so used, applied or retained, then Subtenant shall, upon demand, immediately deposit with Sublandlord an amount in cash equal to the amount so used, applied or retained, so that Sublandlord shall have the entire Security on hand at all times during the Term.  In the event that Subtenant shall fully and faithfully comply with all of the terms, provisions, covenants, agreements and conditions of this Sublease, the Security shall be returned to Subtenant within 60 days after the Expiration Date and delivery of exclusive possession of the Sublease Premises to Sublandlord.  In the event of any making or assignment of any ground or underlying lease, or upon an assignment of Sublandlord’s interest in this Sublease:  (i) Sublandlord shall have the right to transfer the Security to the assignee or lessee or transferee, (ii) upon acknowledgment by such assignee or lessee or transferee of receipt of the Security, Sublandlord shall thereupon be released by Subtenant from all liability for the return of such Security, and (iii) Subtenant agrees to look solely to Sublandlord’s successor for the return of said Security; it being agreed that the provisions hereof shall apply to every transfer or assignment made of the Security to a new Sublandlord.  Subtenant further covenants that Subtenant will not assign or encumber or attempt to assign or encumber the monies deposited herein as Security, and that neither Sublandlord nor Sublandlord’s successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance.

 B.                 Subject to the provisions of Subparagraph 27C below, Sublandlord agrees to place the Security in an interest-bearing account, and, unless disbursed or applied by Sublandlord as provided in Subparagraph 27A above, the interest earned thereon (less an amount equal to one percent of the Security, which may be retained by Sublandlord each year as compensation for management and administration of said account) shall, in Sublandlord’s discretion:  (i) be added to the Security Deposit Amount as additional security, and shall be held and/or disbursed in accordance with the provisions of said Subparagraph 27A, or (ii) be disbursed annually to Subtenant within 60 days following Sublandlord’s receipt of a written request therefor from Subtenant, but only if Subtenant shall not be in default, beyond the expiration of the applicable cure period (if any), with respect to any of Subtenant’s obligations under this Sublease.
 C.                 (i)         Notwithstanding anything to the contrary contained in Subparagraph 27A above, simultaneously with the execution of this Sublease by Subtenant, Subtenant shall deliver to Sublandlord, in lieu of the cash security deposit delivered pursuant to Subparagraph 27A above, a clean, irrevocable, transferable and unconditional letter of credit (the “Letter of Credit”) issued by and drawn upon a commercial bank (hereinafter referred to as the “Issuing Bank”) which shall be a member bank of the New York Clearinghouse Association (or, in the alternative, which shall have offices for banking purposes in the Borough of Manhattan and shall have a net worth of not less than $1,000,000,000, with appropriate evidence thereof to be submitted by Subtenant), which Letter of Credit shall: (i) have a term of not less than one year, (ii) be in the form annexed hereto as Exhibit C, (iii) be for the benefit of Sublandlord, (iv) be in the amount of the Security Deposit Amount, (v) except as otherwise provided in this Subparagraph 27C, conform and be subject to the International Standby Practices (ISP 1998, Publication 590) (or any revision thereof or successor thereto) and (to the extent not inconsistent therewith) the laws of the State of New York, including the Uniform Commercial Code, (vi) be fully transferable by Sublandlord without any fees or charges therefor (or, if the Letter of Credit shall provide for the payment of any transfer fees or charges, the same shall be paid by Subtenant as and when such payment shall be requested by the Issuing Bank (and the same shall constitute Additional Charges hereunder)), (vii) provide that Sublandlord shall be entitled to draw upon the Letter of Credit in New York City upon presentation to the Issuing Bank of a sight draft accompanied by Sublandlord’s statement that Sublandlord is then entitled to draw upon the Letter of Credit pursuant to the terms of this Sublease, and (viii) provide that the Letter of Credit shall be deemed automatically renewed, without amendment, for consecutive periods of one year each year thereafter during the entire Term and for a period of 60 days thereafter, unless the Issuing Bank shall send notice (the “Non-Renewal Notice”) to Sublandlord by registered mail, return receipt requested, not less than 60 days next preceding the then expiration date of the Letter of Credit that the Issuing Bank elects not to renew such Letter of Credit, in which case Sublandlord shall have the right, by sight draft on the Issuing Bank, to receive the monies represented by the then-existing Letter of Credit, and to hold and/or disburse such proceeds pursuant to the terms of Subparagraph 27A above as cash security.  If Sublandlord shall fail, for any reason whatsoever, to draw upon the Letter of Credit within said 60 day period, and the Letter of Credit shall expire prior to the 60th day following the Expiration Date of the Term, then Subtenant shall, upon demand, immediately furnish Sublandlord with a replacement Letter of Credit (which shall comply with all of the conditions set forth in this Subparagraph 27C), so that Sublandlord shall have the entire Security on hand at all times during the Term and for a period of 60 days thereafter.  Subtenant acknowledges and agrees that the Letter of Credit shall be delivered to Sublandlord as security for the faithful performance and observance by Subtenant of all of the covenants, agreements, terms, provisions and conditions of this Sublease, and that Sublandlord shall have the right to draw upon the Letter of Credit in any instance in which Sublandlord would have the right to use, apply or retain the whole or any part of any cash security deposited with Sublandlord pursuant to Subparagraph 27A above.
   
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                                                 (ii)        With respect to the Letter of Credit being required hereunder in lieu of cash security, upon Subtenant’s delivery of the Letter of Credit to Sublandlord:  (i) all references to “Security” in Subparagraph 27A above shall be deemed to refer to the Letter of Credit, or any proceeds thereof as may be drawn upon by Sublandlord, and (ii) the provisions of Subparagraph 27B above shall apply only to such Letter of Credit proceeds (if any) as may be drawn and held by Sublandlord.
  
 28.              Miscellaneous.  This Sublease is made in the State of New York and shall be governed by and construed under the laws thereof.  This Sublease supersedes any and all other or prior understandings, agreements, covenants, promises, representations or warranties of or between the parties (which are fully merged herein).  The headings in this Sublease are for purposes of reference only, and shall not limit or otherwise affect the meaning hereof.  Whenever necessary or appropriate, the neuter gender as used herein shall be deemed to include the masculine and feminine; the masculine to include the feminine and neuter; the feminine to include the masculine and neuter; the singular to include the plural; and the plural to include the singular.  This Sublease shall not be binding upon Sublandlord for any purpose whatsoever unless and until Sublandlord has delivered to Subtenant a fully executed duplicate original hereof.
   
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 29.              Valid Authority.   Subtenant hereby represents and warrants to Sublandlord that:  
 A.                Subtenant is duly organized, validly existing and in good standing under the laws of the State of Delaware, and has the full right and authority to enter into this Sublease; and
 B.                 The execution, delivery and performance of this Sublease by Subtenant:  (i) has been duly authorized, (ii) does not conflict with any provisions of any instrument to which Subtenant is a party or by which Subtenant is bound, and (iii) constitutes a valid, legal and binding obligation of Subtenant.  
 30.              Failure to Give Possession.  If Sublandlord shall be unable to give possession of the Sublease Premises to Subtenant on the Commencement Date for any reason whatsoever, Sublandlord shall not be subject to any liability for failure to give possession on said date and the validity of this Sublease shall not be impaired under such circumstances, nor shall the same be construed to extend the term of this Sublease, but the Fixed Rent shall be abated (provided that Subtenant is not responsible for the inability to obtain possession) until Sublandlord shall have delivered possession of the Sublease Premises to Subtenant.  The provisions of this Paragraph 30 shall be considered an express agreement governing any case of Sublandlord’s failure to deliver possession of the Sublease Premises, and any law now or hereafter in force which is inconsistent with the provisions of this Paragraph 34 shall have no application in such case.
 31.              Consent of Overlandlord under the Overlease.  This Sublease shall have no effect until Overlandlord shall have given written consent hereto.  If Overlandlord does not consent to this Sublease for any reason whatsoever within 45 days after the date hereof, then either party may elect to cancel this Sublease by giving notice to the other party after the expiration of said 45-day period, but prior to the giving of said consent by Overlandlord to this Sublease.  Subtenant acknowledges that Subtenant may be required to execute and deliver a consent agreement as a condition precedent to the execution thereof by Overlandlord.  Subtenant agrees that Subtenant shall promptly execute and deliver to Sublandlord such consent agreement.  Notwithstanding anything to the contrary contained in this Paragraph 31, in the event that Overlandlord (either directly or through its attorneys) shall have forwarded a form of consent to Sublandlord within said 45-day period, but such consent shall not have been executed by all parties thereto for any reason whatsoever, then said 45-day period shall be extended by an additional period of 30 days, during which period Sublandlord and Subtenant shall diligently and in good faith take all reasonable acts necessary to obtain said consent.  If either party shall have given notice of cancellation to the other party (in accordance with the provisions of this Paragraph 31), then: (i) Sublandlord shall not be obligated to take any further action to obtain such consent, (ii) Sublandlord shall refund to Subtenant the installment of Fixed Rent paid by Subtenant, as well as the security (if any) deposited by Subtenant, at the execution of this Sublease, and (iii) this Sublease shall thereupon be deemed null and void and of no further force and effect, and neither of the parties hereto shall have any rights or claims against the other.
   
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 IN WITNESS WHEREOF, Sublandlord and Subtenant have duly executed this Sublease as of the day and year first written above.  
  
                                                                         SUBLANDLORD:
  
                                                                         MIZUHO SECURITIES USA INC.
  
  
                                                                         By:      ________________________________
                                                                                     Name:
                                                                                     Title:
  
                                                                         SUBTENANT:
  
                                                                         TRANS-LUX CORPORATION
  
  
                                                                         By:      ________________________________
                                                                                     Name:
                                                                                     Title:
  
   
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 EXHIBIT A
Floor Plan
  
 [See attached.]
  
   
  

 
  
    

 EXHIBIT B
Overlease
  
 [See attached.]
   
  

 
  
    

 EXHIBIT C
Form of Letter of Credit
  
 NO.___________       Date _____________ Irrevocable Letter of Credit #_____________
  
 BENEFICIARY
  
 _________________________
 _________________________
 _________________________
 _________________________
  
 Dear Sir(s),
             At the request and for the account of                                                                                               , a New York corporation having an office at                                                                                     ,  we  hereby establish our Irrevocable Standby Letter of Credit in your (Beneficiary’s) favor in the maximum aggregate amount of U.S. $               .  
             Drawings under this Letter of Credit shall be available by your drafts at sight, accompanied by your statement, purportedly signed by one of your authorized officers, partners or agents, that you are entitled to draw the amount of the drawing pursuant to the terms of a sublease dated as of                         , 2014, executed by and between ___________________, and                                                , which shall be duly presented at our offices at                                                                                                                           [Name of Bank],                                                                                                                                 [Address of Bank in Manhattan, New York City], and shall be accompanied by the original of this Letter of Credit.  
 This Letter of Credit may be transferred, without charge or fee but otherwise in accordance with the provisions of Rule 6 of the International Standby Practices referred to below, to any transferee of the interest of the sublandlord under the sublease dated as of                                         , 2014, between _______________, as sublandlord, and                                                                    , as subtenant. 
             This Letter of Credit shall expire at our counters at the close of business on                       , 20       ("Expiration Date"); provided that, it is a condition of this Letter of Credit that it shall be deemed to be automatically extended for a period of one year from the present or any future Expiration Date (each anniversary of the Expiration Date being deemed to be an "Expiration Date"[provide for final Expiration Date to be at least 60 days after Lease Expiration Date]), unless we shall notify you by written notice given by registered mail, return receipt requested, at least 60 days prior to any such Expiration Date that we elect not to renew this Letter of Credit for such additional period, in which case you shall have the right on or before the Expiration Date to draw on us the full amount of this Letter of Credit by your sight draft, accompanied by your signed written statement that you are drawing under Letter of Credit #       because you have received notice of non-renewal of such Letter of Credit from us, and you have the right to draw the full amount of the Letter of Credit pursuant to the terms of the sublease dated as of                              , 2014, between _____________________, as sublandlord, and                                                                                                      , as subtenant.   
 Partial drawings are permitted under this Letter of Credit.
 All drafts drawn under this Letter of Credit must bear on their face the clause "Drawn under                                  [Insert Name of Bank] Letter of Credit #                ". 
 Except so far as otherwise expressly stated, this Letter of Credit is subject to the International Standby Practices (ISP 1998, Publication 590) of the International Chamber of Commerce and (to the extent not inconsistent therewith) the laws of the State of New York, including the Uniform Commercial Code.
   

 
  
  
    

 EXHIBIT D
Sublandlord’s Work
 Sublandlord shall:
  
 •                     Replace the current existing carpeting and wall base with Mohawk 24” X 24” Carpet Tile and Johnsonite wall base throughout the Sublease Premises. Selection samples were made available to Subtenant.  
  
 •                     Restore the existing ceiling by recoating the ceiling tiles, grid and diffusers with a bright white, non-bridging and non-toxic coating in the Sublease Premises.
  
 •                     Install new Azrock or Mannington Vinyl Composition Tile in the existing pantry area of the Sublease Premises. Selections samples were made available to Subtenant.

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