Document:

Exhibit 10.18

 

CONSULTING AGREEMENT

 

This
Consulting Agreement (“Agreement”) made and entered into effective as of this 1st
day of April, 2009, by and between Ballantyne of Omaha, Inc. (“Ballantyne”),
a Delaware corporation, with its principal offices at 4350 McKinley St., Omaha,
Nebraska 68112 (the “Company”), and Christopher Beach, an individual whose
mailing address is ** (“Beach”).

 

RECITALS

 

                This Agreement is made with
reference to the following facts and objectives:

 

A.            The Company is in the business of
manufacturing and providing cinema equipment and services (the “Company”).

 

B.            Beach is a non-employee Director of
Ballantyne.

 

C.            The Company desires to retain the
services of Beach in connection with the Company, and Beach has agreed to
provide services to the Company as more fully described below.

 

D.            The services to be performed by
Beach hereunder  are in addition to the
services that would be normally performed by non-employee Directors of
Ballantyne.

 

AGREEMENT

 

NOW
THEREFORE, in consideration of the mutual promises and covenants contained
herein, and other good and valuable considerations, the receipt and sufficiency
of which are hereby acknowledged, Company and Beach hereby agree as follows:

 

1.             Engagement.  The Company hereby engages Beach, and Beach
hereby accepts such engagement as a consultant to the Company

 

2.             Terms.  Subject to the provisions for termination as
hereinafter provided, the term of this Agreement shall begin on the effective
date hereof (“Commencement Date”) and continue for an initial term of one (1) year.

 

3.             Duties.  Beach shall serve as a consultant to the
Company on a part-time basis using Beach’s best efforts to assist the Company
in the operation of the Company, including, but not limited to, assisting
members of the Company’s senior management in refining the Company’s strategic
direction, assisting on mergers and acquisitions activity, and assisting in
succession planning (“Consulting Services”). 
Beach shall be available and shall provide to the Company at such times
as are reasonably requested by the Company the Consulting Services.  All duties hereunder shall be performed only
upon the expressed request and under the general direction of the Company’s
President or Chairman of the Board, from time to time.

 

4.             Independent Contractor Status.  Beach expressly acknowledges that Beach will
be acting as an independent contractor and not as an employee of the Company
for all purposes, Beach shall be responsible for any payment of Social
Security, withholding tax and all other 

 

1

 

federal,
state and local taxes due as a result of his receiving the Consultant Fee.  The Company expressly desires to and shall
rely upon Beach’s expertise and experience in developing and implementing the
methods and means for carrying out Beach’s duties hereunder.  Beach shall be free to set Beach’s own hours
and appointments, within the parameters of the services requested.  Subject to the agreed standards hereunder,
Beach and the Company both expressly acknowledge that the Company is primarily
interested in the results to be obtained.

 

5.             Compensation.  As compensation hereunder, Beach shall be
paid the total sum of $85,000.00 (the “Consultant Fee”).  Said sum shall be payable as follows:

 

5.1.          Cash Payment.  Beach shall receive the sum of $42,499.75
payable in 52 weekly installments of $817.30 each, in accordance with the Company’s
then-current payment practices.

 

5.2.          Restricted Stock.  Beach shall receive a Restricted Stock Award
equal to $42,500.25, priced at the closing market price for the Company’s stock
on the date of the signing of the Consulting Agreement.  Said stock shall vest on the one year
anniversary date of this Agreement.

 

6.             Additional Compensation.

 

6.1           Office Expense.  In addition to the Consultant Fee in
Paragraph 5 above, Beach shall be reimbursed for one-half of the cost incurred
by Beach for maintaining Beach’s office in Santa Monica, California.  This office expense shall be billed by Beach
to the Company monthly.  The Company shall
remit payment of that invoice within fifteen (15) days of its receipt.

 

6.2           Other Expenses.  Beach shall be reimbursed for all reasonable
out-of-pocket travel expenses at levels commensurate with corresponding
expenses incurred by the Company’s Senior Management, including, but not
limited to, automobile expenses, parking expenses, rental car expenses, taxi
cab expenses, hotel expenses, entertainment expenses and air travel.  Beach shall invoice the Company for his
expenses at actual cost at the time the expenses are incurred.  Beach shall submit paid receipts for all
expenses along with said invoice.  The
Company shall remit payment for these invoices within thirty days of receipt of
the invoice.  Personal automobile travel
expenses shall be billed at the applicable mileage reimbursement rates
currently in effect and promulgated by the Internal Revenue Service.

 

7.             Authority of Beach.  Beach shall have no authority to enter into
any contract or agreement or make any representations or commitments on behalf
of the Company unless otherwise so directed in writing by the Company’s
President.

 

8.             Termination.  Notwithstanding anything to the contrary
contained herein, the Agreement may be terminated by either party at any time
upon thirty days written notice, with or without case.  In the event this Agreement is terminated
prior to the expiration of the term hereof, by either party, no further Consultant
Fee shall thereafter be earned, due or payable to Beach.  Beach shall be paid for all Consultant Fee
and expenses incurred prior to the effective date of termination.  In the event that this Agreement is
terminated by the Company without cause, the Restricted Stock grant under Section 5.2
shall immediately vest.

 

9.             Beach’s Representation.  Beach represents and warrants to the Company,
that Beach is free from any prohibitions, agreements or limitations which would
prohibit or restrict 

 

2

 

Beach’s
ability to carry out the services contemplated hereunder.  In the event that the Company shall terminate
this Agreement for cause or Beach shall elect to terminate without cause, the
Restricted Stock Award shall be forfeited. 
For purposes of this Agreement cause shall mean refusal to undertake or
complete the Consulting Services requested hereunder, the filing of any
criminal charges against Beach for theft, fraud, tax evasion, embezzlement, or
any other crime involving dishonesty or which is materially injurious to
Company (monetarily, its reputation, or otherwise); provided that in the case
of an asserted breach of this Agreement by Beach for failure to perform
services hereunder, cause shall only be deemed to exist if such default is not
cured by Beach within fourteen (14) days following written notice from the
Company.

 

10.           Confidentiality/Non-Disparagement.  Upon execution of this Agreement and
thereafter, Beach agrees that he will not reveal, divulge or make known to any
person or legal entity any secret or confidential information whatsoever in
connection with the Company or its Company. 
Upon the execution of this Agreement and thereafter, Beach agrees not to
disparage the Company, its services, Company, officers, directors, employees,
representatives, shareholders or members, or otherwise negatively convey
(verbally, in writing or otherwise) any aspect or characteristic of the
Company, its services, Company, officers, directors, employees,
representatives, shareholders or members to any person or legal entity.

 

11.           Miscellaneous.  The following miscellaneous sections shall
apply to this Agreement:

 

11.1         Entire
Agreement.  This Agreement
constitutes the entire agreement between the parties with respect to the
subject matter of this Agreement and supersedes all prior written and oral
agreements and understandings, between the Company and Beach with respect to
the subject matter of this Agreement. 
This Agreement may not be amended or renewed for any additional term,
except by a written agreement signed by both parties.

 

11.2         Severability.  Whenever possible, each provision and term of
this Agreement will be interpreted in a manner to be effective and valid;
however, if any provision of term of this Agreement is held to be prohibitive
or invalid, then such provision or term shall be ineffective only to the extent
of such prohibition or invalidity, without invalidating or affecting in any
manner whatsoever the remainder of such provision or term, or the remaining
provisions and terms of this Agreement.

 

11.3         Successors
and Assigns.  This Agreement
will be binding upon the Company and Beach and will inure to the benefit of the
Company and its affiliates, successors and assigns, as well as to Beach and the
heirs of Beach.  In the event of the
death or disability of Beach during the term of this Agreement, the Company’s
obligation to remit payment for any unpaid sums due and owing under the terms
of this Agreement shall remain in full force and effect, and shall be paid in
accordance with the payment terms outlined herein.  This Agreement is personal to Beach and shall
not be assignable by Beach, except upon the written agreement of both parties.

 

11.4         Governing
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of Nebraska.  All parties hereto submit to the personal
jurisdiction of the courts of the State of Nebraska with respect to all matters
arising out of or pertaining to this Agreement. 
Any action under or related to this 

 

3

 

Agreement
shall be brought exclusively in the federal or state courts located in Omaha,
Douglas County, Nebraska.

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement effective as
of April 1, 2009.

 

	
   

  	
  BALLANTYNE
  OF OMAHA, INC., a Delaware corporation, “Ballantyne” and “Company”

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  John P. Wilmers

  
	
   

  	
  Its:  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CHRISTOPHER
  BEACH, “Beach”

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Christopher Beach

  

 

4Exhibit 10.19

 

**

 

June 2, 2009

 

Mr. Kevin Herrmann

Ballantyne of Omaha, Inc.

4350 McKinley St.

Omaha, NE 68112

 

Dear Mr. Herrmann,

 

Re: Offer to Purchase and
Release Letter

 

Please accept this letter
as a follow up to discussions held concerning your holdings of the variable
rate preferred securities listed on the Exhibit to this letter (the “Securities”).
** offers to purchase for cash, upon your acceptance of the following terms and
conditions (the “Offer”), the Securities at a price equal to the par amount of
such Securities (as set forth on the attached Exhibit) plus accrued interest to
the date of purchase (the “Purchase Date”).

 

We may revoke this Offer
at any time on 30 days written notice to you. Unless extended or revoked
sooner, this Offer will expire at the close of business on December 31,
2009.

 

Prior to accepting our
Offer, you must read the following letter carefully. If you decide to sell the
Securities on the terms and conditions set forth herein, please sign the
attached copy of this letter and return it to me.

 

By signing this letter
and accepting payment for the Securities, you acknowledge and agree to all of
the following terms:

 

1.              This Offer is made to you personally and
may not be assigned or transferred to any other person or entity. No other
person or entity may take advantage of this Offer.

 

2.              You are not aware of any program or offer
by the issuer or the managing underwriter of the Securities to repurchase such
Securities at par, plus accrued interest. If a reasonably acceptable repurchase
program or offer (which will close within 30 days) is announced before we
purchase the Securities on the Purchase Date, you agree to notify us of such
program or offer and to sell your Securities pursuant to such program or offer
rather than our Offer.

 

3.              You agree to sell all of your right,
title and interest in and to the Securities to us, and you represent that no
other person or party has any interest in or claim against the Securities of
any kind. You will sign any other document which we deem necessary to complete
this transaction, whether prior to, on or after the Purchase Date.

 

4.              You will not disclose the existence of
our Offer or the terms thereof, including this letter, other than to your
attorneys and accountants, except as required by law. You will provide

 

 

prompt notice of such
potential disclosure to ** so that an appropriate protective order may be
sought and/or a waiver of compliance with the provisions of this Agreement may
be granted. We suggest you consult with a professional adviser about this Offer
including your attorneys or accountants. Your adviser must agree not to
disclose any of the terms of this Offer.

 

5.              At the time you purchased the Securities,
you had such knowledge and experience in financial and business matters that
you were capable of evaluating the merits and risks of the prospective purchase
of the Securities. To the extent you deemed necessary, you obtained your own
personal professional advice with respect to the risks inherent in the
investment in the Securities and the suitability of the investment in the
Securities in light of your financial condition and investment needs. You
believed that the investment in the Securities was suitable for you based upon
your investment objectives and financial needs, and you had adequate means of
providing for your current financial needs and personal contingencies and had
no need for liquidity of investment with respect to the Securities.

 

6.              Both at the time you purchased the
Securities and at present, you were and continue to be a bank, registered
investment company, insurance company or other “accredited investor” as defined
in Rule 501 of Regulation D of the United States Securities and Exchange
Commission. You were and continue to be duly and validly organized under the
Jaws of your jurisdiction of incorporation or organization, or you were and
continue to be a natural person, and you could and continue to be able to bear
the economic risk of the purchase and sale of the Securities.

 

7.              You continue to have such knowledge and
experience in business and financial matters, including the analysis of a
participation in the sale of investments similar to the Securities, as to be
capable of evaluating the merits and risks of a sale of the Securities.

 

8.              ** was neither the issuer nor managing
underwriter of the Securities and had no involvement in or responsibility for
the original offering of the Securities, including but not limited to the
preparation of any offering materials relating to the issuance and sale of the
Securities.

 

9.              Effective upon the closing of the sale of
the Securities to **, you release ** and ** their parents, subsidiaries and
affiliates, and their respective officers, directors and employees (the “Released
Parties”) of and from any and all manner of claims, obligations, liabilities,
whether foreseen or unforeseen, matured or unmatured, known or unknown, accrued
or unaccrued, past, present or
future, which you may have against the Released Parties directly or indirectly
arising out of or related to your purchase, ownership and/or sale of the
Securities (“Claims”). You represent that you have not transferred or assigned
your Claims to any third party.

 

10.        This Offer, including this letter and any
other communication from us, does not constitute an admission of liability on
our part of any kind with respect to your purchase and/or sale of the
Securities. We specifically deny and disclaim any liability arising out of or
related to the Securities.

 

 

11.        You may sell only a portion of the
Securities you own. If you choose to sell only a part of your Securities, this
Offer shall remain open for your remaining Securities, unless we withdraw the
Offer as described above. The release of your rights in paragraph 9, however,
will apply to all of the Securities you own, even if you only sell a portion of
the Securities.

 

In order to accept this
Offer, you must sign this letter, unchanged and unaltered and returning it to
me at this address:

 

**

**

**

**

 

Once we receive the
signed copy of this letter, we will notify you if we need you to sign any
additional documents. After we receive all of the necessary documents, we will
notify you that we are prepared to purchase your Securities on the Purchase
Date set forth in such notice, which will be a date not later than three
business days following the date of such notice. Said notice to be issued upon
receipt of all of the necessary documents not later than June 2, 2009. On
the Purchase Date, we will deposit monies in your designated account in
exchange for your tender of the Securities.

 

We look forward to the
return of the signed copy by you. Should you have any questions please feel
free to contact me.

 

Sincerely,

 

	
   

  	
   

  
	
  **

  	
   

  
	
  Senior Vice President &
  Treasurer

  	
   

  
	
   

  
	
   

  
	
  Signature:

  	
  /s/ John P. Wilmers

  	
   

  
	
   

  
	
  Name:

  	
  John P. Wilmers

  	
   

  
	
   

  
	
  Title:

  	
  President &
  CEO

  	
   

  
	
   

  
	
  Company Name:

  	
  Ballantyne of OMAHA

  	
   

  
	
   

  
	
  Date:

  	
  June 2, 2009

  	
   

  
	
   

  
	
  Exhibit:

  
	
  Client Holdings Report

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