On June 3, 2020, Trans-Lux Corporation entered into a Modification Agreement of that certain Loan Agreement with its wholly-owned subsidiaries FairPlay Corporation (jointly, severally and collectively, “Borrowers” and each a “Borrower”), and Trans-Lux Canada Ltd., Trans-Lux Display Corporation, Trans-Lux Investment Corporation and Trans-Lux Energy Corporation jointly, severally and collectively, “Guarantors” and each a “Guarantor”; and together with Borrowers, jointly, severally and collectively, “Loan Parties” and each a “Loan Party”) and MidCap Business Credit LLC (“MidCap”) as lender (“Lender”). Under the Modification Agreement, Lender waives the Company’s events of default, including the Company’s failure to maintain a certain minimum EBITDA calculation for the six month period ending March 31, 2020. The Modification Agreement provides MidCap’s assent to allow the Company to enter into a contract manufacturing agreement and a security agreement with Craftsmen Industries Inc. The Modification Agreement redefines the borrowing base certificate and reduces potential availability. The Modification Agreement also contains adjustments to future financial covenants that require the Borrowers to attain certain EBITDA amounts for certain periods, the first of which is for the three month period ended September 30, 2020. The Modification Agreement requires the payment of a modification fee of $40,000. The foregoing description of the Modification Agreement is included to provide information regarding its terms.