Document:

Exhibit
4.1

 

THIRTEENTH AMENDMENT TO THE

REVOLVING CREDIT AGREEMENT

 

THIS
THIRTEENTH AMENDMENT to the REVOLVING CREDIT AGREEMENT, dated as of May 31,
2010 (the “Thirteenth Amendment”), is entered into in connection with and as an
amendment to that certain Revolving Credit Agreement, dated as of March 10,
2003, as amended by that First Amendment, dated as of August 31, 2003, as
further amended by that Second Amendment, dated as of February 27, 2004,
as further amended by that Third Amendment, dated as of August 30, 2004,
as further amended by that Fourth Amendment dated as of August 29, 2005,
as further amended by that Fifth Amendment dated as of August 29, 2006, as
further amended by that Sixth Amendment dated as of August 29, 2007, as
further amended by that Seventh Amendment dated as of March 31, 2008, as
further amended by that Eighth Amendment dated as of August 29, 2008, as
further amended by that Ninth Amendment dated as of September, 2008, as further
amended by the Tenth Amendment dated as of August 30, 2009, as further
amended by the Eleventh Amendment dated as of November 30, 2009, as
further amended by the Twelfth Amendment dated as of March 30, 2010 and as
further amended, restated or modified from time to time, by and between First
National Bank of Omaha, a national banking association (“FNBO”) and Ballantyne
Strong, Inc., a Delaware corporation formerly known as Ballantyne of Omaha, Inc.
(the “Borrower”) (collectively, the “Credit Agreement”).  All capitalized terms used but not otherwise
defined herein shall have their respective meanings as prescribed in the Credit
Agreement.

 

WHEREAS,
the maturity date for the Base Revolving Credit Facility pursuant to the Credit
Agreement is currently June 1, 2010;

 

WHEREAS,
the Borrower and FNBO desire to extend the maturity date of the Base Revolving
Credit Facility to July 1, 2010.

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained in
this Thirteenth Amendment, the parties hereby agree as follows:

 

1.                                       Definitions.  Article I of the Credit Agreement is
hereby amended to read as follows:

 

The
definition of “Termination Date” is amended and restated in its entirety to
read as follows:

 

“Termination Date:                                           July 1,
2010, or such later date as is approved in writing by FNBO.”

 

2.                                       Reaffirmation.  Except as specifically amended and modified
hereby or otherwise agreed, the Credit Agreement and each Operative Document
remains in full force and effect in accordance with its terms and is hereby
reaffirmed, ratified and confirmed in all respects.

 

1

 

3.                                       Representations.  The Borrower hereby represents that on and as
of the date hereof and after giving effect to this Thirteenth Amendment:
(a) all of the representations and warranties contained in the Credit
Agreement are true, correct and complete in all respects as of the date hereof
as though made on and as of the date hereof, except for changes permitted by
the terms of the Credit Agreement; and (b) there exists no Event of
Default under the Credit Agreement as of the date hereof.

 

4.                                       Entirety.  This Thirteenth Amendment, the Credit
Agreement and the other Operative Documents embody the entire agreement between
the parties hereto and supersede all prior agreements and understandings, oral
or written, if any, relating to the subject matter hereof.

 

5.                                       Counterparts.  This Thirteenth Amendment may be executed in
counterparts, each of which shall constitute an original, but all of which when
taken together shall constitute one and the same instrument.

 

6.                                       Governing
Law.  THIS THIRTEENTH AMENDMENT
SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE LAWS OF THE STATE OF
NEBRASKA APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN THE
STATE OF NEBRASKA.  WHENEVER POSSIBLE
EACH PROVISION OF THIS AMENDMENT SHALL BE INTERPRETED IN SUCH MANNER AS TO BE
EFFECTIVE AND VALID UNDER APPLICABLE LAW, BUT IF ANY PROVISION OF THIS
THIRTEENTH AMENDMENT SHALL BE PROHIBITED BY OR INVALID UNDER APPLICABLE LAW,
SUCH PROVISION SHALL BE INEFFECTIVE TO THE EXTENT OF SUCH PROHIBITION OR
INVALIDITY, WITHOUT INVALIDATING THE REMAINDER OF SUCH PROVISION OR THE
REMAINING PROVISIONS OF THIS AMENDMENT. 
ALL OBLIGATIONS OF THE BORROWER AND RIGHTS OF FNBO EXPRESSED HEREIN, IN
THE CREDIT AGREEMENT OR IN ANY OTHER OPERATIVE DOCUMENT SHALL BE IN ADDITION TO
AND NOT IN LIMITATION OF THOSE PROVIDED BY APPLICABLE LAW.

 

7.                                       Statutory
Notice.  A CREDIT AGREEMENT MUST BE
IN WRITING TO BE ENFORCEABLE UNDER NEBRASKA LAW. TO PROTECT YOU AND US FROM ANY
MISUNDERSTANDINGS OR DISAPPOINTMENTS, ANY CONTRACT, PROMISE, UNDERTAKING, OR
OFFER TO FOREBEAR REPAYMENT OF MONEY OR TO MAKE ANY OTHER FINANCIAL
ACCOMMODATION IN CONNECTION WITH THIS LOAN OF MONEY OR GRANT OR EXTENSION OF
CREDIT, OR ANY AMENDMENT OF, CANCELLATION OF, WAIVER OF, OR SUBSTITUTION FOR
ANY OR ALL OF THE TERMS OR PROVISIONS OF ANY INSTRUMENT OR DOCUMENT EXECUTED IN
CONNECTION WITH THIS LOAN OF MONEY OR GRANT OR EXTENSION OF CREDIT, MUST BE IN
WRITING TO BE EFFECTIVE.

 

[REMAINDER OF PAGE INTENTIONALLY BLANK; SIGNATURE PAGE FOLLOWS.]

 

2

 

IN
WITNESS WHEREOF, the Borrower and FNBO have caused this Thirteenth Amendment to
be executed as of the day and year first above written.

 

	
   

  	
  BANK:

  
	
   

  	
   

  
	
   

  	
  FIRST
  NATIONAL BANK OF OMAHA

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  John Berkhausen

  
	
   

  	
  Name:
  John Berkhausen

  
	
   

  	
  Title:
  Portfolio Manager

  
	
   

  	
   

  
	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  BALLANTYNE
  STRONG, INC., formerly known

  as Ballantyne of Omaha, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  John P. Wilmers

  
	
   

  	
   

  	
  John
  P. Wilmers, is President & CEO

  

 

Each
of the undersigned Guarantors hereby acknowledges the Thirteenth Amendment,
reaffirms its obligations under the Guaranty and other Guarantor Documents
previously delivered, and acknowledges and agrees that the “Obligations” under
the Guaranty includes all of the obligations of the Borrower to FNBO now or
hereafter existing under the Credit Agreement, as amended by the Thirteenth
Amendment.

 

 

	
  STRONG TECHNICAL SERVICES, INC.

  	
   

  	
  STRONG
  WESTREX, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  John P. Wilmers

  	
   

  	
  By:

  	
  /s/
  John P. Wilmers

  
	
   

  	
  John
  P. Wilmers, its President

  	
   

  	
   

  	
  John
  P. Wilmers, its President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  STRONG/MDI SCREEN SYSTEMS INC.,

  	
   

  	
   

  
	
  formerly known as Strong Digital Systems Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  John P. Wilmers

  	
   

  	
   

  
	
   

  	
  John
  P. Wilmers, its President

  	
   

  	
   

  

 

3Exhibit
10.4

 

IN THE YEAR TWO THOUSAND
TEN, on June twenty-nine (2010-06-29).

BEFORE Mtre Michel
DIONNE, notary at Joliette, Province of Quebec.

 

APPEARED:

 

GESTION NORAM INC., a company
legally incorporated under Part 1A
of the Companies Act by a Certificate
of Incorporation dated May 13th 2009, under the name of 9209-8581 QUÉBEC
INC. followed by a Certificate of Amalgamation dated September 1st, 2009
by which it merged with “Les Éclairage
Noram inc.” and finally by a Certificate of Modification dated September 1st, 2009, changing its name to GESTION NORAM INC.,
having its head office at 3000, de Stockholm Street, Laval, H7K 3T6,
registration number 1165879439, represented by Marc Desrochers, President, duly
authorized by resolution of its board of directors dated June 23rd, 2010, a copy whereof remains attached hereto after having been
acknowledged as true and signed for identification by the representative in the
presence of the Notary and by the latter.

 

Hereinafter called the “Vendor”

 

AND

 

STRONG/MDI
SCREEN SYSTEMS INC. (LES SYSTÉMES D’ÉCRAN STRONG/MDI INC.), a company
legally incorporated under Part 1A
of the Companies Act by
Certificate of Incorporation dated September 20th 2007, having its head office at 1440, Raoul-Charrette Street, Joliette
(Quebec), J6E 8S7, registration number 1164688559, represented by Chris Stark,
Vice-President, duly authorized by resolution of its board of directors dated June 25th, 2010, a copy whereof remains attached hereto after having been
acknowledged as true and signed for identification by the representative in the
presence of the Notary and by the latter.

 

Hereinafter called the “Purchaser”

 

WHO have agreed as follows:

 

OBJECT OF THE CONTRACT

 

The Vendor sells to the
Purchaser the Immoveable described hereinafter:

 

DESCRIPTION

 

An Immoveable known and
designated as:

 

a)                                                                                      Lot number THREE MILLION SEVEN HUNDRED AND SIXTY-FOUR THOUSAND FIVE HUNDRED AND
SEVENTY-TWO (Lot 3 764 572) of the official Cadastre of
Quebec, Registration Division of Joliette;

 

b)                                                                                     Lot number THREE MILLION SEVEN HUNDRED AND SIXTY-FOUR THOUSAND FIVE HUNDRED AND
SEVENTY-THREE (Lot 3 764 573) of the official Cadastre of
Quebec, Registration Division of Joliette;
and

 

c)                                                                                      Lot number THREE MILLION THREE HUNDRED AND TWENTY-SIX THOUSAND EIGHT HUNDRED AND.
FIFTY-FIVE (Lot 3 326 855) of the official Cadastre of
Quebec, Registration Division of Joliette.

 

With the commercial building
and all dependencies erected thereon, located at 1440, Raoul-Charrette Street,
Joliette, Quebec.

 

Hereinafter called the “Immoveable”

 

	
  Dionne,
  Kelley, Paquin notary

  	
   

  
	
  Member
  of Jurisconseil

  	
   

  

 

 

SERVITUDES

 

The vendor declares that the
Immoveable is subject to all public utility servitudes that may exist for the
transmission and distribution of electrical, telephone, telecommunication and
cable services, namely those established in favour of Shawinigan Water &
Power Co., Electric service corporation and Bell Canada, as described under the
terms of the acts registered at the Registration Division of Joliette, under
numbers 51 976, 51 977, 53 521, 88 969 and 89 887.

 

The Immoveable property is
subject to a pre-emption right in favour of “Ville de Joliette” in case of the
re-sale of un-built portions of land, the whole as it appears under the terms
of the following deeds:

 

a) sale by “Ville de
Joliette” to Marcel Desrochers inc. received before Me Louise Langelier,
notary, on November 15th, 1996, and published at the Registry Office of
the Registration Division of Joliette, under number 337 957;

 

b) sale by “Ville de
Joliette” to Marcel Desrochers inc. received before Me André Cantin, notary, on
December 10th, 1998, and published at the Registry Office of the
Registration Division of Joliette, under number 349 380.

 

The Purchaser further
recognizes the rights of “Société Hydro-Québec” regarding to the “conditions de
services d’électricité d’Hydro-Québec” in effect since April 1st, 2008,
namely the authorisation granted to Hydro-Québec to install without necessity
of obtaining any servitude nor further authorisation, to suit to their needs upon
the Immoveable, posts and other electrical installations for their network when
the said network serves the Immoveable and also the right to use the land of
the Immoveable to install, maintain, connect, exploit, modify and prolong the
utilisation and up-keeping of its electrical network.

 

ORIGIN OF THE RIGHT OF OWNERSHIP

 

The Vendor is the owner of
the Immoveable having acquired same from Marcel Desrochers inc., under the
terms of a deed of sale executed before Mtre. Marie-Andrée Schmidt, notary, on October 10th, 2007, published at the
Registry Office of the Registration Division of Joliette under the number 14
689 685.

 

WARRANTY

 

This sale is made without
any warranty and at the Purchaser’s risk and peril except for the validity of
the title and representations made by the vendor stipulated in the preliminary
contract, copy of which is annexed to these presents.

 

TITLE DEEDS

 

The Vendor delivers to the
Purchaser all the title deeds in his possession as well as a certificate of
location prepared by Richard Castonguay, Quebec land surveyor, on April 15th, 2005, under number 26 009 of his minutes,
showing the present state of the property, a copy of the plan attached to such
certificate is attached to the present deed, after having been acknowledged as
true and signed by the parties in the presence of the undersigned notary and by
the latter.

 

POSSESSION

 

The Purchaser shall be the
owner of the Immoveable from this day, with immediate occupancy and possession.

 

Notwithstanding paragraph 2
of article 1456 of the Civil Code of Quebec, the Purchaser
shall assume the risks attached to the property, in accordance with article 950
of the Civil Code of Quebec, as of the date of these 

 

 

presents.

 

DECLARATIONS
OF THE VENDOR

 

The Vendor makes the
following declarations and warrants that:

 

1.                                                                                     He is the sole
and absolute owner of the Property by clear, valid and marketable title, free
and clear of any charge, hypothec, affectation, servitudes save and except for
the usual public utility servitudes and all other hereinabove described
servitudes, reserve, taxes, leases (save and except for the lease entered into
between the Vendor and the Purchaser on October 12th, 2007), occupation rights, defaults of title or
any other real right;

 

2.                                                                                     There is no
other cause which could constitute a legal hypothec on the Immoveable that has
been sold, notably for any renovation, development or other similar work; if
such work has been done, it has been entirely paid for, including, without
limitation, the cost of materials, labour, the contractor, the architect and
the engineer.

 

3.                                                                                     There is no
claims, actions or procedures, actual or anticipated, with respect to any part
of the Property or to the title of the Vendor or of any prior owner of the
Property;

 

4.                                                                                     There is no
agreement, arrangement or contract relating to the Property or any part thereof
other than the Contracts remitted to the Purchaser, if any;

 

5.                                                                                     The Property is
not subject to any work order, notice of default, notice of violation, or any
other similar notices issued by a competent governmental authority, save and
except with respect to a notice issued by the fire department of the city of
Joliette following an inspection conducted on April 7th, 2009 and pursuant to which it is required to install sprinkler systems in order
to protect all parts of the Building in accordance with the specifications set
forth in such notice. For purposes of clarity, it is understood that the Vendor
does and will not assume any responsibility with respect to such notice and to
the absence of such requested sprinkler systems, the Purchaser accepting to
assume any liability, risk and responsibility relating thereto to the entire
exoneration of the Vendor following the sale of the Property; copy of said
inspection report is attached to these presents after having been acknowledged
to be true and signed by the parties in the presence of the undersigned notary
and by the latter;

 

6.                                                                                       There is no
overdue tax, tax allocation or assessment with respect to the Property. Any and
all realty taxes have been paid without subrogation up to the date hereof;

 

7.                                                                                       He shall
reimburse the Purchaser upon request that proportion of any tax pertaining to a
period prior to the date of adjustment of the current charges indicated be
despite the effective date and the due date of such charges.

 

8.                                                                                       All transfer
duties have been paid.

 

9.                                                                                       The heating
equipment located in the Immoveable belongs to him and is not subject to any
obligation.

 

10.                                                                                 The certificate
of location prepared by Richard Castonguay, Quebec land surveyor, on April 15th, 2005, under
number 26 009 of his minutes, describes the present state of the Immoveable and
no change were made to the Immoveable since that date, save and except that
since the certificate has been made, the Immoveable property has been subject
to a cadastral renovation.

 

11.                                                                                 The Immoveable
is not subject to any option to purchase or right of first refusal binding him
personally in any lease or other document.

 

12.                                                                                 The Immoveable
does not derogate from the laws and regulations concerning the protection of
the environment.

 

 

13.                                                                                 He has received
no notice from any competent authority to the effect that the Immoveable does
not comply with the laws and regulations in force.

 

14.                                                                                 The Immoveable
described above is not subject in any way to the Act respecting the preservation of
agricultural land and agricultural
activities.

 

15.                                                                                 The Immoveable
is not and has not been part of a real estate complex from which it has been
separated following a sale.

 

16.                                                                                 The Immoveable
is not a recognized or a classified cultural property and is not located in a
historic or natural district, within a classified historic site, or in a
protected area, within the meaning of the Cultural
Property Act.

 

17.                                                                                 to the best
knowledge of the Vendor, there is no actual or anticipated suit or procedure
concerning the expropriation of the Property or any part thereof, and the
Vendor has not received any notice pertaining to a proposed expropriation or to
the creation of any reserve affecting the Property. The Vendor has no knowledge
of any suit or procedure which may presently be considered by any authority;

 

18.                                                                               He is a legal
person resident in Canada within the meaning of the Income Tax Act and the
Taxation Act and has no intention of changing such residence.

 

19.                                                                               He is in a
position to supply a certificate of compliance from the relevant government
authority, and it has validly acquired and has the power to own and sell the
Immoveable without any formalities other than those already observed.

 

OBLIGATIONS

 

The Purchaser binds and
obliges himself to:

 

1.                                                                                     Take the
Immoveable in its present state, declaring having seen and examined same to his
satisfaction, and having verified himself with the relevant authority that the
use he intends to make of the Immoveable complies with the laws and regulations
in force;

 

2.                                                                                     Pay all
property taxes due and to become due, including the proportion for the current
year from this date and also to pay, from the same date, all future instalments
in capital and interest of all special taxes imposed before this day, payment
of which is spread over a period of years;

 

3.                                                                                     The purchaser
declares having taken communication of the update of the environmental Phase 1
established by LVM, on June 21th, 2010 the whole to his satisfaction, a
copy of which remains attached to these presents after having been acknowledged
to be true and signed by the parties in the presence of the undersigned notary
and by the latter.

 

4.                                                                                     To accept the
localization certificate spelled out in the Vendor’s declarations and declare
being satisfied with it, acknowledging that since the execution of said
certificate, a cadastral renovation has been made on said Immoveable. The
purchaser undertakes to get himself a new certificate if required by a
potential lender and to suffer all related costs.

 

5.                                                                                      Pay the costs
and fees of these presents, their publication and copies for all parties.

 

ADJUSTMENTS

 

There will be no adjustments
between the vendor and the purchaser for taxes and other charges.

 

 

DECLARATION
CONCERNING THE PRELIMINARY  CONTRACT

 

This sale is made in
execution of the preliminary contract dated June 11th, 2010 and accepted on June 15th, 2010 by the Vendor and the Purchaser, copy of said preliminary contract,
in both languages, remains attached to these presents after having been
acknowledged to be true and signed by the parties in the presence of the
undersigned notary. Unless conflicting with these presents, the parties confirm
the agreements contained in the preliminary contract but not reproduced herein.

 

PRICE

 

This sale is made for the
price of de TWO MILLION EIGHT HUNDRED THOUSAND DOLLARS
($2 800 000) paid in full by the Purchaser to the Vendor, whereof
FULL AND FINAL ACQUITTANCE.

 

BREAKDOWN OF THE SELLING PRICE

 

The present price is
allocated as follows:

 

a)              for the building: two
million seven hundred thirty-six thousand six hundred and sixty dollars (2 736 760,00$).

 

b)             for the land: sixty-three
thousand two hundred and forty dollars (63
240,00$).

 

DECLARATIONS OF THE PARTIES
CONCERNING THE GOODS AND SERVICES TAX (GST) AND THE PROVINCIAL SALES TAX (PST)

 

The vendor declares that the
Immoveable is for commercial use only.

 

Accordingly, the sale is
taxable upon the Loi sur la taxe d’accise et
de la Loi sur la taxe de vente du Québec dispositions.

 

The parties declare that the
value of consideration for the Loi sur la
taxe d’accise is of two millions eight hundred thousand dollars (2 800 000), and for the Loi sur la taxe
de vente du Québec is of two millions nine hundred and forty
thousand dollars ($2 940 000)

 

The GST represents a sum of
one hundred and forty thousand dollars ($140
000) and the QST represents a sum of two hundred twenty thousand and five
hundred dollars ($220 500).

 

AND

 

The purchaser declares that
his inscriptions numbers are the following: GST: 103499596
QST 1000242850 and that these inscriptions have not been cancelled and are not
going to be.

 

Consequently, the
responsibility regarding the perception of said taxes is borne by the
Purchaser.

 

DECLARATION

 

The parties confirm their
express wish that this Deed and all documents relating to it, be drawn up in
English. Les parties aux présantes confirment leur volonté expresse de voir le
présent acte et tous les documents s’y rattachant, rédigés en anglais.

 

 

REQUIREMENTS
PURSUANT TO ARTICLE 9 OF THE ACT RESPECTING DUTIES ON TRANSFERS OF
IMMOVABLES

 

The Vendor and the Purchaser
are referred to respectively as the “Assignor” and the “Assignee” for the
purposes hereof and declare:

 

The name and address of the
Assignor and Assignee are those indicated in the appearance heading hereof;

 

The Immoveable above
described is situated in the city of Joliette.

 

The value of the
consideration stipulated and given for the transfer off the asset according to
the assignor and the assignee is de TWO MILLION EIGHT HUNDRED THOUSAND DOLLARS
($2 800 000).

 

The amount constituting the
tax basis for the transfer duties according to the assignor and the assignee is
TWO MILLION EIGHT HUNDRED THOUSAND DOLLARS ($2 800 000).

 

The transfer duties are of
an amount of FORTY THOUSAND FIVE HUNDRED DOLLARS ($40 500) which is the
percentage of the tax base prescribe by statute.

 

There has been no transfer
of a corporeal Immoveable and/or of a moveable property as contemplated by
article 1.0.1 of the statute.

 

WHEREOF ACT at Joliette,
under number twenty-eight thousand five hundred and nine (28 509) of the
minutes of the undersigned notary.

 

AND AFTER DUE READING, the parties
have signed in the presence of the notary.

 

	
   

  	
  GESTION NORAM INC.

  	
   

  
	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Marc Desrochers

  	
   

  
	
   

  	
  Marc Desrochers

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  STRONG/MDI SCREEN SYSTES INC.
  (LES SYSTEMES

  D’ECRAN STRONG/MDI INC.)

  	
   

  
	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Chris Stark

  	
   

  
	
   

  	
  Chris Stark

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Michel Dionne

  	
   

  
	
   

  	
  MICHEL DIONNE, Notary

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