Exhibit
10.1


 


NON-EMPLOYEE
DIRECTOR RESTRICTED SHARE UNIT AGREEMENT


UNDER


THE
BALLANTYNE STRONG, INC.


2017
OMNIBUS EQUITY COMPENSATION PLAN


 


SUMMARY
OF RESTRICTED SHARE UNIT AWARD: 


 


Ballantyne
Strong, Inc., a Delaware corporation (the “Company”), grants to the Grantee named below, in accordance with
the terms of the Ballantyne Strong, Inc. 2017 Omnibus Equity Compensation Plan (the “Plan”) and this Non-Employee
Director Restricted Share Unit Agreement (the “Agreement”), the following number of Restricted Share Units,
on the Date of Grant set forth below:


 


	 	Name
    of Grantee: 	 
	 	 	 
	 	Number
    of Restricted Share Units:	 
	 	 	 
	 	Date
    of Grant:	 
	 	 	 
	 	Vesting
    Dates:	In
    one-third annual installments on the first, second, and third anniversaries of the Date of Grant


 


TERMS
OF AGREEMENT: 


 


1.
Grant of Restricted Share Units. Subject to and upon the terms, conditions, and restrictions set forth in this Agreement
and in the Plan, the Company hereby grants to the Grantee as of the Date of Grant, the total number of share units (the “Restricted
Share Units”) set forth above. Each Restricted Share Unit shall represent the contingent right to receive one Share
and shall at all times be equal in value to one Share. The Restricted Share Units shall be credited in a book entry account established
for the Grantee until payment in accordance with Section 4 hereof.


 


2.
Vesting of Restricted Share Units.


 


(a)
A ratable portion of the Restricted Share Units (rounded down to the next whole number) shall vest on each of the Vesting Dates
set forth above (each, a “Vesting Date”), provided that the Grantee shall have remained in the continuous service
of the Company as a director (“Continuous Service”) through the applicable Vesting Date.


 


(b)
Notwithstanding Section 2(a), (i) if the Grantee makes himself or herself available and consents to be nominated by the Company
for Continuous Service as a director of the Company, but is not nominated by the Board for election by the stockholders, other
than for good reason as determined by the Board in its discretion, then the Restricted Share Units shall vest in full as of the
Grantee’s last date of service as a director with the Company; and (ii) upon the occurrence of a Change in Control prior
to a Vesting Date and during the Grantee’s Continuous Service, the vesting of the Restricted Share Units will be governed
by the applicable provisions of Section 20 of the Plan.


 




    	 	 	 



     


    

 


3.
Forfeiture of Restricted Share Units. Except as otherwise determined by the Committee, in its sole discretion, the Restricted
Share Units that have not yet vested pursuant to Section 2(a) shall be forfeited automatically without further action or notice
if the Grantee ceases to be a director of the Company other than as provided pursuant to Section 2(b).


 


4.
Payment.


 


(a)
Except as may be otherwise provided in this Section, the Company shall deliver to the Grantee (or the Grantee’s estate in
the event of death) the Shares underlying the vested Restricted Share Units within thirty (30) days following the date that the
Restricted Share Units become vested in accordance with Section 2.


 


(b)
Notwithstanding Section 4(a), to the extent that the Grantee’s right to receive payment of the Restricted Share Units constitutes
a “deferral of compensation” within the meaning of Section 409A of the Code, payment of any vested Restricted Share
Units shall be subject to the following rules, to the extent necessary to comply with Section 409A of the Code:


 


(i)
Except as provided in Section 4(b)(ii), the Shares underlying the vested Restricted Share Units shall be delivered to the Grantee
(or the Grantee’s estate in the event of death) within thirty (30) days after the earlier of: (A) the Grantee’s “separation
from service” within the meaning of Section 409A of the Code; (B) the occurrence of a “change in the ownership,”
a “change in the effective control” or a “change in the ownership of a substantial portion of the assets”
of the Company within the meaning of Section 409A of the Code; or (C) the applicable Vesting Date.


 


(ii)
If the Restricted Share Units become payable as a result of Section 4(b)(i)(A), but not as a result of the Grantee’s death,
and the Grantee is a “specified employee” at that time within the meaning of Section 409A of the Code, then the Shares
underlying the vested Restricted Share Units shall instead be delivered to the Grantee within thirty (30) days after the first
business day that is more than six months after the date of his or her separation from service (or, if the Grantee dies during
such six-month period, within thirty (30) days after the Grantee’s death).


 


(c)
The Company’s obligations with respect to the Restricted Share Units shall be satisfied in full upon the delivery of the
Shares underlying the vested Restricted Share Units.


 


5.
Transferability. The Restricted Share Units may not be transferred, assigned, pledged or hypothecated in any manner, or
be subject to execution, attachment or similar process, by operation of law or otherwise, unless otherwise provided under the
Plan. Any purported transfer or encumbrance in violation of the provisions of this Section 5 shall be void, and the other party
to any such purported transaction shall not obtain any rights to or interest in such Restricted Share Units.


 


6.
Dividend, Voting and Other Rights. The Grantee shall not possess any incidents of ownership (including, without limitation,
dividend and voting rights) in the Shares underlying the Restricted Share Units until such Shares have been delivered to the Grantee
in accordance with Section 4 hereof, and no dividend equivalents will be paid or provided under this Agreement. The obligations
of the Company under this Agreement will be merely that of an unfunded and unsecured promise of the Company to deliver Shares
in the future, and the rights of the Grantee will be no greater than that of an unsecured general creditor. No assets of the Company
will be held or set aside as security for the obligations of the Company under this Agreement.


 




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7.
No Retention Rights. Nothing contained in this Agreement shall confer upon the Grantee any right with respect to continuance
of service with the Company or a Subsidiary, nor limit or affect in any manner the right of the Company and its stockholders to
terminate the service of the Grantee or adjust the compensation of the Grantee.


 


8.
Relation to Other Benefits. Any economic or other benefit to the Grantee under this Agreement or the Plan shall not be
taken into account in determining any benefits to which the Grantee may be entitled under any profit-sharing, retirement or other
benefit or compensation plan maintained by the Company or a Subsidiary.


 


9.
Taxes and Withholding. To the extent the Company or any Subsidiary is required to withhold any federal, state, local, foreign
or other taxes in connection with the delivery of Shares under this Agreement, then the Company or Subsidiary (as applicable)
shall retain a number of Shares otherwise deliverable hereunder with a value equal to the applicable tax withholding (based on
the Fair Market Value of the Shares on the date of delivery); provided that in no event shall the value of the Shares retained
exceed the amount of taxes required to be withheld based on the maximum statutory tax rates in the Grantee’s applicable
taxing jurisdictions. If the Company or any Subsidiary is required to withhold any federal, state, local or other taxes at any
time other than upon delivery of the Shares under this Agreement, then the Company or Subsidiary (as applicable) shall have the
right in its sole discretion to (a) require the Grantee to pay or provide for payment of the required tax withholding, or (b)
deduct the required tax withholding from any amount of salary, bonus, incentive compensation or other amounts otherwise payable
in cash to the Grantee (other than deferred compensation subject to Section 409A of the Code).


 


10.
Adjustments. The number and kind of Shares deliverable pursuant to the Restricted Share Units are subject to adjustment
as provided in Section 15 of the Plan.


 


11.
Compliance with Law. The Company shall make reasonable efforts to comply with all applicable federal and state securities
laws and listing requirements with respect to the Restricted Share Units; provided, however, notwithstanding any other provision
of this Agreement, and only to the extent permitted under Section 409A of the Code, the Company shall not be obligated to deliver
any Shares pursuant to this Agreement if the delivery thereof would result in a violation of any such law or listing requirement.


 


12.
Amendments. Subject to the terms of the Plan, the Committee may modify this Agreement upon written notice to the Grantee.
Any amendment to the Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable
hereto. Notwithstanding the foregoing, no amendment of the Plan or this Agreement shall adversely affect the rights of the Grantee
under this Agreement without the Grantee’s consent unless the Committee determines, in good faith, that such amendment is
required for the Agreement to either be exempt from the application of, or comply with, the requirements of Section 409A of the
Code, or as otherwise may be provided in the Plan.


 


13.
Severability. In the event that one or more of the provisions of this Agreement shall be 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 shall continue to be valid and fully enforceable.


 




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14.
Relation to Plan. This Agreement is subject to the terms and conditions of the Plan, including the forfeiture provisions
of Section 19 of the Plan. This Agreement and the Plan contain the entire agreement and understanding of the parties with respect
to the subject matter contained in this Agreement, and supersede all prior written or oral communications, representations and
negotiations in respect thereto. In the event of any inconsistency between the provisions of this Agreement and the Plan, the
Plan shall govern. Capitalized terms used herein without definition shall have the meanings assigned to them in the Plan. The
Committee acting pursuant to the Plan, as constituted from time to time, shall, except as expressly provided otherwise herein,
have the right to determine any questions which arise in connection with the grant of the Restricted Share Units.


 


15.
Successors and Assigns. Without limiting Section 5, the provisions of this Agreement shall inure to the benefit of, and
be binding upon, the permitted successors, administrators, heirs, legal representatives and assigns of the Grantee, and the successors
and assigns of the Company.


 


16.
Choice of Law; Venue; Jury Trial Waiver. The interpretation, performance, and enforcement of this Agreement shall be governed
by the laws of the State of Delaware, without giving effect to the principles of conflict of laws thereof. The Company and the
Grantee stipulate and consent to personal jurisdiction and proper venue in the state or federal courts of Douglas County, Nebraska
and waive each such party’s right to object to a Nebraska court’s jurisdiction and venue. The Grantee and the Company
hereby waive their right to a jury trial on any legal dispute arising from or relating to this Agreement, and consent to the submission
of all issues of fact and law arising from this Agreement to the judge of a court of competent jurisdiction as otherwise provided
for above.


 


17.
Data Privacy. In order to administer the Plan, the Company may process personal data about the Grantee. Such data includes,
but is not limited to the information provided in this Agreement and any changes thereto, other appropriate personal and financial
data about the Grantee such as home address and business addresses and other contact information and any other information that
might be deemed appropriate by the Company to facilitate the administration of the Plan. By signing this Agreement, the Grantee
gives explicit consent to the Company to process any such personal data. The Grantee also gives explicit consent to the Company
to transfer any such personal data outside the country in which the Grantee works or is employed, including, if the Grantee is
not a U.S. resident, to the United States, to transferees that shall include the Company and other persons who are designated
by the Company to administer the Plan.


 


18.
Plan and Prospectus Delivery. By signing this Agreement, the Grantee acknowledges that a copy of the Plan, the Plan Summary
and Prospectus, and the Company’s most recent Annual Report and Proxy Statement (the “Prospectus Information”)
either have been received by or provided to the Grantee, and the Grantee consents to receiving the Prospectus Information electronically,
or, in the alternative, agrees to contact the Chief Financial Officer of the Company to request a paper copy of the Prospectus
Information at no charge. The Grantee also represents that he or she is familiar with the terms and provisions of the Prospectus
Information and hereby accepts the Award on the terms and subject to the conditions set forth herein and in the Plan. The Grantee
hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions
arising under the Plan or this Agreement.


 




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IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Date of Grant.


 


	 	BALLANTYNE
    STRONG, INC.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	          
	 	 	 
	 	GRANTEE
	 	 	 
	 	By:
    	 
	 	Name:
    	 
	 	Address:	 
	 	 	 
	 	 	 


 




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