Document:

Exhibit 10.2

EQUIPMENT PURCHASE AGREEMENT

This Equipment Purchase Agreement (this “Agreement”) is entered into as
of July 21, 2006 (the “Effective Date”), by and between Ballantyne of Omaha,
Inc. d/b/a  Strong Digital Systems, a
Delaware Corporation (“Seller”) and Digital Link LLC, a California limited
liability company (“Buyer”).

1.             Purchase and Sale.  Buyer hereby agrees to purchase and Seller
agrees to sell twelve (12) NC2500S digital projectors and accessories (each, a “Projector”
and collectively, “Projectors”) on the terms and conditions set forth herein.

2.             Prices and Taxes.

(a)           The purchase price for each Projector is                      
or an aggregate of                                      
for all projectors (the “Purchase Price”). 
The Purchase Price is payable                                                
on delivery of the Projectors, with the balance of                                                                     
payable in sixty (60) equal monthly installments of principal and interest,
with interest accruing at the rate of                          
per annum, in the amount of $                             ,
commencing on August 21, 2006.  Said
balance shall be evidenced by the Promissory Note of the Buyer, a copy of which
is attached hereto marked Exhibit “A”.  Sales
and use taxes will be billed, and is payable, upon delivery of each projector
based upon the total purchase price at the appropriate state and local tax rate
in effect at such time.

(b)           Purchaser shall also pay a monthly
service fee of $         per month,
commencing on the 21st day of August, 2006, and the 21st day
of each month thereafter through and including July 21, 2011.

3.             Installation,
Service and Extended Warranty.

(a)           Seller or
another qualified Seller affiliate (“Strong Service”) shall provide
installation, maintenance and repair services for each Projector, the related
Doremi server, wiring and systems (collectively, a “DC System”) to Buyer and
each Exhibitor acquiring a DC System and installation, maintenance and repair
services for any REAL D 1.0 System purchased in connection with such DC System.

(b)           Strong Service shall be responsible for installing each DC System and REAL D 1.0 System
at the Exhibitor locations designated by Buyer and shall be responsible for the
project management of the installation. 
Such installation shall be contingent on Strong Service having entered
into a Service and Maintenance Agreement with the Exhibitor prior to the
scheduled installation date.  All field service, maintenance and repairs on
each DC System and each REAL D 1.0 System, including engineering
support and a 24/7

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telephone help desk
(but excluding routine consumable items such as bulb and air filter changes), shall be provided by Strong Service pursuant to
that certain Service and Maintenance Agreement to be entered into between Buyer
and Strong Service (the “Service Agreement”).

(c)           Seller shall provide a two
year parts and labor warranty on the digital projector, pedestal, and server as
part of this Agreement at no charge to Buyer and any Exhibitor designated by
Buyer.  This warranty does not cover consumable items such as xenon bulbs
and air filters.  The Service Agreement shall include an extended parts
warranty between the Exhibitor and Seller.

(d)           Seller shall use its best efforts to
install and have operational all DC Systems and REAL D 1.0 Systems no later
than July 20, 2006.  Seller shall not be
liable for any failure to install any Projector if such failure is caused by
reason of any fire, casualty, lockout, strike, labor conditions, unavoidable
accident, riot, war, any act of God, any local or national emergency, unusual
condition or any other cause beyond Seller’s exclusive control.

4.             Security Interest.  Buyer hereby grants a security interest in
the Projectors (the “Collateral”) to Seller to secure payment of the balance of
the Purchase Price.  Buyer authorizes
Seller to file or record this Agreement or financing statement(s), pursuant to
the Uniform Commercial Code or other applicable law, to perfect, continue,
release, assign, terminate and /or amend its security interest in the
Collateral.  Upon the request of Seller,
Buyer agrees to execute any other instruments reasonably required to protect
Seller’s security interest.

5.             Indemnity.  Seller will defend, indemnify, and hold
harmless Buyer and the Exhibitors from and against any third party claims
(including court costs and reasonable attorneys’ fees) for personal injury or
physical damage to property arising out of the use of the Projectors caused by
Seller’s negligence or willful misconduct. 
Seller will have no obligation with respect to any claim based upon use
of the Projectors in a manner inconsistent with the instructions provided to
Buyer and Exhibitors.

6.             Warranties.

6.1           Disclaimer. EXCEPT AS
SPECIFICALLY SET FORTH HEREIN OR IN THE MANUFACTURER’S WARRANTY FOR THE
PROJECTORS, SELLER MAKES NO OTHER WARRANTIES WITH RESPECT TO THE PROJECTORS AND
DISCLAIMS ALL OTHER WARRANTIES INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT.

6.2           Limitation of Liability.  Without limiting the generality of Section
6.1, but subject to the other terms of this Agreement, Seller shall not be
liable or responsible for any indirect or consequential cost or damage to
persons or property, or for DL or any Exhibitor’s loss of use of a Projector or
for interruption of DL or any Exhibitor’s business caused by DL or Exhibitor’s
loss of use of a Projector.

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7.             Termination.

(a)           The purchase of any Projector
hereunder may be cancelled by Buyer on ten (10) days notice to Seller if such
Projector has not been installed and become fully operational by the date set
forth in Section 3(c).

(b)           Either party may terminate this Agreement due to a material breach by
the other party of any of its obligations hereunder upon thirty (30) days’
written notice to the breaching party if such breaching party fails to remedy
such breach within such thirty (30) days, or, in the event such breach cannot
be remedied within such thirty (30) days, if such breaching party has not
undertaken substantial good faith efforts to remedy such breach within such
thirty (30) day period and is continuing in good faith with such efforts.

8.             Time of the Essence.  Time
is of the essence with respect to all provisions of this Agreement that specify
a time for performance.

9.             Assignment.  This Agreement may not be assigned by either
party without the prior written consent of the other party, which consent shall
not be unreasonably withheld, provided however, that Buyer is permitted to
designate the Exhibitors of the Projectors purchased hereunder.

10.           Notices.  All notices, requests or other communication
provided for or permitted under this Agreement shall be given in writing and
shall be hand delivered or sent by confirmed facsimile or international courier
to the individual addresses set forth on the signature page of this Agreement,
or to such other individuals and addresses as either party may inform the other
of in writing.  Notices will be deemed
delivered on the earliest of transmission by facsimile or actual receipt.

11.           Governing Law.  This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Nebraska
without regard to any of its conflict of laws rules.

12.           Entire Agreement.  This Agreement constitutes the entire
agreement between the parties with respect to the subject matter hereof and
supersedes all prior and contemporaneous agreements and communications between
the parties.  This Agreement shall not be
amended or modified except by a written agreement signed on behalf of the
parties by their respective authorized representatives.

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Each of the
parties has agreed to the terms and conditions of this Agreement as evidenced
by the signatures below of their authorized representatives.

 

 

	
  Ballantyne
  of Omaha, Inc., Strong Digital

  Systems, a Delaware Corporation

  	
   

  	
  Digital Link LLC,

  a California limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ John Wilmers

  	
   

  	
   

  	
  By:

  	
  Andrew A. Skarupa

  	
   

  
	
  Name:

  	
  John Wilmers

  	
   

  	
   

  	
  Name:

  	
  Andrew A. Skarupa

  	
   

  
	
  Title:

  	
  President and CEO

  	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  4350 McKinley Street

  	
   

  	
  Address:

  	
  100 North Cresent Drive

  	
   

  
	
   

  	
  Omaha NE, 68112

  	
   

  	
   

  	
  Suite 120

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Beverly Hills, CA 90210

  
	
  Facsimile:

  	
  402-453-7238

  	
   

  	
  Facsimile:

  	
  310.385.4001

  
													

 

Confidential portions of this agreement have been
omitted.

 4Exhibit 10.2.1

AMENDMENT NO. 1 TO EQUIPMENT PURCHASE AGREEMENT

Parties

This
Amendment No. 1 to Equipment Purchase Agreement dated October 27, 2006, by and
between Ballantyne of Omaha, Inc. d/b/a Strong Digital Systems, a Delaware
corporation (“Seller”) and Digital Link LLC, a California limited liability
company (“Buyer”).

Recitals

This
Amendment No. 1 to Equipment Purchase Agreement is made with reference to the
following facts and objectives:

A.            On or about July 21, 2006, Seller
and Buyer entered into an Equipment Purchase Agreement wherein Seller agreed to
sell and Buyer agreed to purchase twelve (12) NC2500S digital projectors and
accessories on the terms and conditions set forth in said Agreement.

B.            Seller and Buyer desire to amend
said Equipment Purchase Agreement in accordance with the terms and conditions
set forth herein.

Agreement

NOW,
THEREFORE, in consideration of the foregoing and mutual covenants herein
contained, the parties hereto agree as follows:

1.             Section 1 Amendments to
Agreement.

1.1           Section 3(a) of the Equipment
Purchase Agreement is deleted in its entirety, and replaced with the following:

“(a)         Seller
or another qualified Seller affiliate (“Strong Service”) shall provide
installation for each projector, the related Doremi server, wiring and systems
(collectively, a “DC System”) to Buyer and each Exhibitor acquiring a DC System
and installation for any REAL D 1.0 System purchased in connection with such DC
System.

1.2           Section 3(b) of the Equipment
Purchase Agreement is deleted in its entirety, and replaced with the following:

“(b)         Strong
Service shall be responsible for installing each DC System and REAL D 1.0
System at the Exhibitor’s location designated by Buyer and shall be responsible
for the project management of the installation.”

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2.                                       Section
2 Ratification

Accepted
here as amended, the parties hereto confirm and ratify the Equipment Purchase
Agreement, acknowledge that it is binding and enforceable according to the
terms thereof.

WHEREFORE,
this Amendment No. 1 to Equipment Purchase Agreement is duly executed by the
parties hereto as of the date set forth above.

 

	
  BALLANTYNE OF OMAHA,
  INC.

  d/b/a Strong Digital Systems, a Delaware corporation

  	
   

  	
  Digital Link LLC, a California limited

  liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ John Wilmers

  	
   

  	
   

  	
  By:

  	
  /s/ Andrew A.
  Skarupa

  	
   

  
	
  Name:

  	
  John Wilmers

  	
   

  	
   

  	
  Name:

  	
  Andrew A. Skarupa

  	
   

  
	
  Title:

  	
  President and CEO

  	
   

  	
   

  	
  Title:

  	
  CFO

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  4350 McKinley St.

  	
   

  	
  Address:

  	
  100 N. Crescent Dr. Suite 120

  	
   

  
	
   

  	
  Omaha, NE 68112

  	
   

  	
   

  	
  Beverly Hills, CA 90210

  	
   

  
	
  Facsimile:

  	
  402-453-7238

  	
   

  	
  Facsimile:

  	
  310-385-4001

  	
   

  
															

 

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