Document:

Exhibit

EXHIBIT 10.11

Grantee:        
Shares:          
MATRIX SERVICE COMPANY
AWARD AGREEMENT

August __, 201_10

«Grantee»
«Address1»
«Address2»
«City», «State» «PostalCode»

Dear «FirstName»:

1.    Award.  The awards set forth in this Award Agreement (the "Award Agreement") are subject to your acceptance of and agreement to all of the applicable terms, conditions, and restrictions described in the 2016 Stock and Incentive Compensation Plan (the "Plan"), of Matrix Service Company, a Delaware corporation (the "Company") a copy of which is on file with, and may be obtained from, the Secretary of the Company, and to your acceptance of and agreement to the further terms, conditions, and restrictions described in this Award Agreement.  To the extent that any provision of this Award Agreement conflicts with the expressly applicable terms of the Plan, it is hereby acknowledged and agreed that those terms of the Plan shall control and, if necessary, the applicable provisions of this Award Agreement shall be hereby deemed amended so as to carry out the purpose and intent of the Plan.

2.    Restricted Stock Units and Cash-Based Long-Term Incentive Award.  

(a)    Restricted Stock Units and Performance Units Awards.  The Company hereby grants to you an aggregate of up to «Shares» restricted stock units (individually, an "RSU," and collectively, "RSUs") as more specifically set forth in Section 2(f).  Each RSU entitles you to receive one share of common stock, par value $.01 per share, of the Company (the "Shares") at such time as the restrictions described in Section 2(e)(ii) lapse as described in Section 2(f)(i).  In addition, the Company hereby grants to you an aggregate of up to «Shares» performance units (individually, a "Performance Unit," and collectively, "Performance Units").  Each Performance Unit entitles you to receive up to two Shares at such time as the restrictions described in Section 2(e)(ii) lapse as described in Section 2(f)(ii).

(b)    Form of Restricted Stock; Possession of Certificates.  The Company shall issue the Shares you become entitled to receive hereunder by book-entry registration or by issuance of a certificate or certificates for the Shares in your name as soon as practicable after the restrictions in Section 2(e)(ii) lapse as described in Section 2(f).  In the event the Company issues a certificate or certificates for the Shares, such certificates shall be subject to such stop transfer orders and other restrictions as the committee of the Board of Directors that administers the Plan may deem necessary or advisable under the Plan and rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares are then listed, and any applicable foreign, federal or state securities laws.  

(c)    Stockholder Rights Prior to Issuance of Shares.  Neither you nor any of your beneficiaries shall be deemed to have any voting rights, rights to receive dividends or other rights as a stockholder of the Company with respect to any Shares covered by the RSUs or the Performance Units until the date of book-entry registration or issuance by the Company of a certificate to you for such Shares. 

(d)    Cash-Based Long-Term Incentive Award.  In addition to the RSUs and Performance Units, the Company hereby grants to you a cash-based long-term incentive award, hereinafter referred to as the "Performance Cash Award."  The minimum award is zero, the target award is $[[        ]] (the "Target Award") and the maximum award is $[[        ]] (the "Maximum Award").  The amount that will be paid in respect of the Performance Cash Award will be determined based on the Company's Return on Invested Capital ("ROIC"), as otherwise set forth herein and more fully described below.  This Performance Cash Award entitles you to receive up to the Maximum Award at such time as the restrictions described in Section 2(e) lapse as described in Section 2(f) if the Maximum Performance Goal (as defined below) for ROIC established by the Committee is achieved.  

(e)    Restrictions.

(i)    Your ownership of the RSUs and Performance Units and your right to receive the Performance Cash Award shall be subject to the restrictions set forth in subsection (ii) of this Section 2(e) until such restrictions lapse pursuant to the terms of Section 2(f).

(ii)    The restrictions referred to in subsection (i) of this Section 2(e) are as follows:

(A)    At the time of your termination of employment with the Company or an Affiliate, other than a termination of employment that occurs as a result of an event described in any of Subsections (iv) through (vii) of Section 2(f), you shall forfeit the RSUs, Performance Units and the Performance Cash Award to the Company and all of your rights thereto shall terminate without any payment of consideration by the Company.  

(B)    You may not sell, assign, transfer or otherwise dispose of any RSUs or Performance Units, any portion of the Performance Cash Award or any rights under the RSUs, Performance Units or Performance Cash Award.  No RSU, Performance Unit or Performance Cash Award and no rights under any such RSU, Performance Unit or Performance Cash Award may be pledged, alienated, attached or otherwise encumbered, other than by will or the laws of descent and distribution.  If you or anyone claiming under or through you attempts to violate this Section 2(e)(ii)(B), such attempted violation shall be null and void and without effect, and all of the Company's obligations hereunder shall terminate.

(f)    Lapse of Restrictions.

(i)    The restrictions described in Section 2(e)(ii) shall lapse with respect to the RSUs in four equal installments of 25 percent each on each of the first, second, third and fourth anniversaries of the date of this Award Agreement, such that the restrictions set forth in Section 2(e)(ii) shall have lapsed with respect to 100 percent of the RSUs on the fourth anniversary of the date of this Award Agreement.

(ii)    The restrictions described in Section 2(e)(ii) shall lapse with respect to the Performance Units on the third anniversary of the date of this Award Agreement (the "Measurement Date"), but only if and to the extent the Committee certifies in writing that the "Shareholder Return Goals" set forth in this subsection (ii) are met.  The Shareholder Return Goals are as follows:

	
			
	

Shareholder 
Return Goal
	

Total 
Shareholder Return
	Percentage of Performance Units for Which
Conditions are Satisfied

	 
	 
	 

	Threshold Total Shareholder Return Goal
	____ percentile of Peer Group
	__%

	Above Threshold Total Shareholder Return Goal
	____ percentile of Peer Group
	__%

	Target Total Shareholder Return Goal

Above Target Total Shareholder Return Goal

Maximum Total Shareholder Return Goal

	____ percentile of Peer Group

____ percentile of Peer Group

____ percentile of Peer Group
	

___%

___%

___%

The Committee shall certify on a nondiscretionary basis whether and the extent to which the Shareholder Return Goals have been met on or before the date on which the Company is required to make a book-entry registration or issue a certificate for Shares relating to the achievement of Shareholder Return Goals as set forth in Section 2(f)(viii).  In the event the Committee certifies that the Threshold Total Shareholder Return Goal has not been met, then all of the Performance Units will be forfeited to the Company.  In the event the Committee certifies that the Company has achieved the Maximum Total Shareholder Return Goal, the conditions shall be deemed to have been satisfied and the restrictions on a number of Performance Units equal to all of the Performance Units multiplied by two shall be removed as of the Measurement Date.  In the event the Committee certifies that the Company has achieved a Total Shareholder Return that is between any of the Total Shareholder Return Goals set forth above, then the conditions with respect to the Performance Units shall be deemed to have been met for the number of Performance Units determined by linear interpolation between such Shareholder Return Goals and the restrictions on such Performance Units shall be removed as of the Measurement Date and the remainder of the Performance Units will be forfeited to the Company.  The Committee has the final authority to determine on a nondiscretionary basis whether the Shareholder Return Goals have been met and to what extent.  Notwithstanding the foregoing or any other provision of this Award Agreement to the contrary, in the event that the Committee certifies that the Company has achieved a Total Shareholder Return which is above the ____ percentile of the Peer Group but the Total Shareholder Return of the Company is less than zero, then the conditions with respect to the 

Performance Units shall be deemed to have been satisfied and the restrictions on a number of Performance Units equal to the Above Target Total Shareholder Return Goal shall be removed as of the Measurement Date and the remainder of the Performance Units will be forfeited to the Company.
For purposes of measuring the Shareholder Return Goals with respect to the Company and each of the companies in the Peer Group: "Total Shareholder Return" shall mean the total shareholder return calculated by subtracting 1 from the following fraction:
Numerator: Ending Stock Value 
Denominator: Beginning Stock Value
"Beginning Stock Value" shall mean, with respect to the Company and each of the companies in the Peer Group, $100, invested in common stock at the average closing stock price of such company for each of the trading days in the period covering April, May and June of ____; "Ending Stock Value" shall mean, with respect to the Company and each of the companies in the Peer Group, the average closing stock price of such company of one share of common stock for each of the trading days in the period covering April, May and June of ____ multiplied by the sum of the number of shares represented by the Beginning Stock Value initial $100 investment plus such additional shares resulting from all dividends paid on common stock during the three-year measurement period being treated as though they are reinvested on the applicable ex-dividend dates at the applicable closing prices on such dates; and "Peer Group" shall mean ________.  The Company's ranking relative to members of the Peer Group will be determined by listing the Company and members of the Peer Group from highest to lowest Total Shareholder Return achieved by the respective company and counting down from the company with the highest Total Shareholder Return to the Company's position within such list.  In all events, the Total Shareholder Return of any member of the Peer Group shall be adjusted to give effect to any stock dividends, stock splits, reverse stock splits and similar transactions.  If a company or companies in the Peer Group files for bankruptcy at any time prior to _________ (the "Performance Period Termination Date"), then such company or companies shall have the lowest ranking in the Peer Group.  If the common stock of a company or companies in the Peer Group ceases to trade on a national securities exchange as a result of a going private transaction or other acquisition at any time prior to the Performance Period Termination Date, then such company or companies shall be removed from the Peer Group.  
(iii)    The restrictions described in Section 2(e)(ii) shall lapse with respect to the Performance Cash Award on the second anniversary of the date of this Award Agreement (the "ROIC Measurement Date"), but only if and to the extent the Committee certifies in writing that the ROIC Performance Goals set forth in this subsection (iii) are met.  The ROIC Performance Goals are as follows:

	
					
	ROIC Level
	Average ROIC
	

Percentage of Performance Cash Award for Which
Conditions are Satisfied
	 

	 
	 
	 
	 

	Threshold ROIC Goal
	__%
	___%

	 
	 
	 
	 

	Target ROIC Goal
	 
	__%
	___%

	Maximum ROIC Goal
	 
	__%
	___%

The Committee shall certify on a nondiscretionary basis whether and the extent to which the ROIC Performance Goals have been met on or before the date on which the Company is required to issue you a check in redemption of your Performance Cash Award as set forth in Section 2(f)(viii).  In the event the Committee certifies that the Threshold ROIC Performance Goal has not been met, then all of the Performance Cash Award will be forfeited to the Company.  In the event the Committee certifies that the Maximum ROIC Goal has been met, the conditions shall be deemed to have been met for a Performance Cash Award equal to ___% of the Target Performance Cash Award.  In the event the Committee certifies that the Company has achieved an ROIC that is between the Threshold ROIC Performance Goal and the Target ROIC Performance Goal or between the Target ROIC Performance Goal and the Maximum ROIC Performance Goal set forth above, then the conditions with respect to the Performance Cash Award shall be deemed to have been met for a percentage of the Performance Cash Award determined by linear interpolation between such ROIC Performance Goals and the restrictions on such Performance Cash Award shall be removed as of the ROIC Measurement Date and the remainder of the Performance Cash Award will be forfeited.  The Committee has the final authority to determine on a nondiscretionary basis whether the ROIC Performance Goals have been met and to what extent. 
For purposes of measuring the ROIC Performance Goals, "Average ROIC" shall mean average ROIC for fiscal ____ and fiscal ____.  ROIC will be calculated quarterly as follows and Average ROIC for the full fiscal year shall represent the average of the four quarterly calculations:  
Fiscal ____ ROIC:
Numerator:  Fiscal ____ operating Income x (1 - Tax Rate)
Denominator: Fiscal ____ average quarterly invested capital.  The quarterly invested capital is calculated as follows: (prior quarter-end Total Assets + current quarter-end Total Assets/2) - (prior quarter-end Current Liabilities + current quarter-end Current liabilities/2) - (prior quarter-end Cash + current quarter-end Cash/2)
Fiscal ____ ROIC:
Numerator:  Fiscal ____ operating Income x (1 - Tax Rate)

Denominator: Fiscal ____ average quarterly invested capital.  The quarterly invested capital is calculated as follows: (prior quarter-end Total Assets + current quarter-end Total Assets/2) - (prior quarter-end Current Liabilities + current quarter-end Current liabilities/2) - (prior quarter-end Cash + current quarter-end Cash/2)
Average ROIC is then calculated as follows: (Fiscal ____ ROIC + Fiscal ____ ROIC)/2
The foregoing calculation shall exclude the effect of any acquisitions in the fiscal year of the acquisition which may occur on or before the ROIC Measurement Date regardless of whether such acquisition takes the form of a merger, consolidation, asset purchase or stock purchase.
(iv)    Notwithstanding the provisions of subsections (i), (ii) and (iii) of this Section 2(f), the restrictions described in Section 2(e)(ii) shall lapse with respect to the RSUs, the Performance Units and the Performance Cash Award (as if each of the Target Total Shareholder Return Goal and Target Performance Cash Award had been met) upon the occurrence of any of the following events:
(1)    Your death or "Disability"; or
(2)    A Change of Control of the Company.
The term "Disability" shall mean your inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death, or which has lasted or can be expected to last for a continuous period of not less than 12 months.  For purposes of this Section 2(f)(iv), the Target Performance Goal shall be deemed to have been met on the date the restrictions lapse by reason of the occurrence prior to the Measurement Date or ROIC Measurement Date of any of the foregoing events, so that the conditions on issuance of 100 percent of the Performance Units and the Target Performance Cash Award shall be deemed satisfied on the date of such event.
(v)    Notwithstanding the provisions of subsection (i) of this Section 2(f), upon the occurrence of your "Retirement," the restrictions described in Section 2(e)(ii) automatically and with no exercise of discretion of the Committee shall lapse with respect to all of your remaining RSUs and be settled upon the earliest to occur of (A) the normal lapsing schedule set forth in Section 2(f)(i) hereof, (B) your death and (C) a Change of Control.  Notwithstanding any other provision of this subsection (v), in the event that you Retire within one year of the date of this Award Agreement, the restrictions will not lapse on any portion of the RSUs represented by this Award Agreement and all such remaining RSUs shall immediately be forfeited.    
The term "Retirement" or "Retire" shall mean your voluntary "Separation from Service" (as defined in Code Section 409A), on or after the date (A) on which you attain age 65 or (B) on which you attain age 60 and have completed at least ten years of continuous service as an employee of the Company or an Affiliate.
(vi)    Notwithstanding the provisions of subsection (ii) of this Section 2(f), in the event that you Retire prior to the Measurement Date and the Committee subsequently determines and certifies that the Company has achieved a Shareholder Return Goal at a level at or above the Threshold Shareholder Return Goal, the restrictions described in Section 2(e)(ii) shall lapse with respect to a pro rata number of Performance Units equal to the total number of Performance Units for which the restrictions would have lapsed on the Measurement Date 

under Subsection (ii) of this Section 2(f) if you had not Retired prior to the Measurement Date, multiplied by a fraction, the numerator of which is equal to the number of full and partial months elapsed from the date of the Award to the date of your Retirement, and the denominator of which is 36.
(vii)    Notwithstanding the provisions of subsection (iii) of this Section 2(f), in the event that you Retire prior to the ROIC Measurement Date and the Committee subsequently determines and certifies that the Company has achieved an ROIC Goal at a level at or above the Threshold ROIC Goal, the restrictions described in Section 2(e)(ii) shall lapse with respect to a pro rata portion of the Performance Cash Award equal to the total dollar amount for which the restrictions would have lapsed on the ROIC Measurement Date under Subsection (iii) of this Section 2(f) if you had not Retired prior to the ROIC Measurement Date, multiplied by a fraction, the numerator of which is equal to the number of full and partial months elapsed from the date of the Award to the date of your Retirement, and the denominator of which is 24.
(viii)    On the date of the lapse of the restrictions in accordance with this Section 2(f), or in any event, no later than the earlier of ninety (90) days after such date or two and one half months following the end of the calendar year in which the restrictions lapsed in accordance with Section 2(f), the Company will make a book-entry registration or will issue you a certificate as provided in Section 2(c) of this Award Agreement for the Shares covered by such RSUs and Performance Units in redemption of such RSUs and Performance Units and will pay you by check in redemption of the Performance Cash Award.    
3.    Agreement with Respect to Taxes; Share Withholding.  You agree that (1) you will pay to the Company or an Affiliate, as the case may be, in cash, or make arrangements satisfactory to the Company or such Affiliate regarding the payment of any taxes of any kind required by law to be withheld by the Company or any of its Affiliates with respect to the Performance Cash Award, the RSUs, the Performance Units and/or the Shares and (2) the Company or any of its Affiliates shall, to the extent permitted by law, have the right to deduct from any payments of any kind otherwise due to you any taxes of any kind required by law to be withheld with respect to the Performance Cash Award, the RSUs, the Performance Units and the Shares.
4.    Adjustment of Shares.  The number of Shares subject to the RSUs and Performance Units awarded to you under this Award Agreement may be adjusted as provided in the Plan.  
5.    Agreement With Respect to Securities Matters.  You agree that you will not sell or otherwise transfer any Shares received pursuant to this Award Agreement except pursuant to an effective registration statement under the U.S. Securities Act of 1933, as amended, or pursuant to an applicable exemption from such registration.  Unless a registration statement relating to the Shares issuable upon the lapse of the restrictions on the RSUs and Performance Units pursuant to this Award Agreement is in effect at the time of issuance of such Shares, the certificate(s) for the Shares shall contain the following legend:  
The securities evidenced by this certificate have not been registered under the Securities Act of 1933 or any other securities laws.  These securities have been acquired for investment and may not be sold or transferred for value in the absence of an effective registration of them under the U.S. Securities Act of 1933 and any other applicable securities laws, or receipt by the Company of an opinion of counsel or other evidence acceptable to the Company that such registration is not required under such acts.  

6.    Forfeiture and Clawback.  
(a)You agree that in the event you violate the confidentiality, non-competition, non-solicitation or non-disparagement provisions of any agreement between you and the Company or any Affiliate, or any plan of the Company or any Affiliate in which you participate, including without limitation, the non-solicitation provisions of Section 7 below, you will forfeit in their entirety the Performance Cash Award, the RSUs and the Performance Units, and all of your rights thereto shall terminate without any payment of consideration by the Company. 
(b)Notwithstanding any other provision of the Plan or this Award Agreement to the contrary, you acknowledge that any incentive-based compensation paid to you hereunder may be subject to recovery by the Company under any clawback policy which the Company may adopt from time to time, including without limitation the Company's existing policy and any policy which the Company may be required to adopt under Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations of the U.S. Securities and Exchange Commission thereunder or the requirements of any national securities exchange on which the Company's common stock may be listed. You agree to promptly return any such incentive-based compensation which the Company determines it is required to recover from you under any such clawback policy. 
7.    Non-Solicitation.  
(a)    Non-Solicitation of Employees.  During the period beginning on the date of this Award Agreement and ending on the second anniversary of the date of your termination of employment with the Company or an Affiliate, regardless of the reason for your termination of employment, you shall not, directly, or indirectly by assisting others: (i) cause or attempt to cause or encourage any employee of the Company or an Affiliate to terminate his or her relationship with the Company or an Affiliate or (ii) solicit the employment or engagement as a consultant or adviser, of any employee of the Company or an Affiliate or any former employee of the Company or an Affiliate who left the employ of the Company or Affiliate within two years following your termination of employment with the Company or an Affiliate.
(b)    Reasonableness of Restriction.  You agree and acknowledge that the above non-solicitation covenant is reasonable in the scope of activities restricted, the geographic area covered by the restriction and the duration of the restriction, and is necessary in that it protects the legitimate business interests of the Company and its Affiliates in its confidential information, its proprietary work, and its relationships with its employees, customers, suppliers and agents and that it does not unreasonably impair your ability to earn a livelihood or to support your dependants.
(c)    Irreparable Harm; Injunctive Relief.  You agree and acknowledge that a violation by you of the non-solicitation covenant contained herein will result in immediate and irreparable harm to the Company for which there is no adequate remedy at law.  You hereby agree that the Company will be entitled, in addition to any remedies it might have under this Award Agreement or at law, to injunctive and other equitable relief to prevent or curtail any threatened or actual breach of this Award Agreement by you, without the posting of bond or other security.
(d)    Extension of Covenant.  During any breach of the non-solicitation provisions of this Award Agreement, the period of restraint set forth herein shall be automatically tolled and suspended for the amount of time that the violation continues.

(e)    Survival of Covenants.  Your obligations pursuant to this Section 7 shall survive the termination of this Award Agreement and the termination of your employment with the Company or an Affiliate.
(f)    Attorneys' Fees.  You agree to pay the Company any attorneys' fees and costs which the Company incurs in enforcing, to any extent, the provisions of this Section 7, whether or not litigation is actually commenced, and including any appeal.
8.    Compliance with 409A.  The Company intends that this Award Agreement and the Plan either (a) comply with Section 409A and guidance thereunder or (b) be excepted from the provisions of Section 409A. Accordingly, the Company reserves the right and you agree that the Company shall have the right, without your consent and without prior notice to you, to amend either or both this Award Agreement and the Plan to cause this Award Agreement and the Plan to be so compliant or so excepted and to take such other actions under the Plan and this Award Agreement to achieve such compliance or exception.
9.    Certain Definitions.  Capitalized terms used in this Award Agreement and not otherwise defined herein shall have the respective meanings provided in the Plan.
10.    Designation of Beneficiary.  Your beneficiary for receipt of any payment made under this Award Agreement in the event of your death shall be the person(s) designated as your beneficiary(ies) on a form prescribed by the Company.  If no beneficiary is designated, upon your death, payment shall be made to your estate.  

[Signature Page to Follow]

If you accept this Award Agreement and agree to the foregoing terms and conditions, please so confirm by signing and returning the duplicate copy of this Award Agreement enclosed for that purpose.

MATRIX SERVICE COMPANY

By:                                                                        
Name:                                                                   
Title:                                                     

The foregoing Award Agreement is accepted by me as of ______________________, and I hereby agree to the terms, conditions, and restrictions set forth above and in the Plan.

                                                                                                           
«Grantee»ballantyne
strong, inc.

11422
Miracle Hills Dr., Suite 300

Omaha,
Nebraska 68154

 

September
9, 2018

 

Fundamental
Global Investors, LLC

4201
Congress Street, Suite 140

Charlotte,
North Carolina 28209

Attention:
Kyle Cerminara

 

	Re:	Shares
    of Common Stock of BK Technologies, Inc.

 

Dear
Kyle:

 

This
letter is being delivered in connection with the purchase from Ballantyne Strong Inc. (“Seller”) by Fundamental
Global Investors, LLC (“Fundamental Global”) or one or more of its affiliates (together with Fundamental Global,
“Purchaser”) of 1,147,087 shares of common stock, par value $0.60 (the “BKTI Securities”),
of BK Technologies, Inc., a Nevada corporation (the “Company”), for a purchase price of $3.95 per each
common share, which is equal to the greater of (i) the closing price per common share of the Company’s stock as reported
on the NYSE American stock exchange on September 7, 2018 (the last trading day before the date of this letter agreement) or (ii)
the average closing price per common share of the Company’s common stock as reported on the NYSE American stock exchange
for the last 20 trading days ending on the date of this letter agreement. The Purchaser entities are listed on Schedule A along
with the allocation of their respective Cash Purchase Price (as defined below) and BKTI Securities.

 

1.
Subject to the terms and conditions of this letter agreement, Seller will sell, assign, transfer and convey to Purchaser, and
Purchaser will purchase, the BKTI Securities for an aggregate purchase price of $4,530,993.65 (the “Cash Purchase
Price”). The purchase and sale of the BKTI Securities shall take place remotely via the exchange of documents and signatures
on September 9, 2018 or at such other mutually acceptable time and date (which time and date are designated as the “Closing”).
At the Closing, Seller shall initiate the electronic or physical delivery of the BKTI Securities to Purchaser (and if physical
delivery, the BKTI Securities duly endorsed in blank or accompanied by stock powers or other instruments of transfer duly executed
in blank) and Purchaser shall deliver the Cash Purchase Price to Seller by a wire transfer (or transfers if more than one entity
is purchasing) of immediately available funds in an amount equal to the Cash Purchase Price to the bank account designated by
Seller.

 

    	 

    	 

    

 

2.
Seller hereby represents and warrants to Fundamental Global as of the date hereof and as of the Closing as follows: (i) Seller
is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (ii) Seller has
all requisite power and authority to execute and deliver this letter agreement and to consummate the transactions described herein,
(iii) the execution and delivery by Seller of this letter agreement and the performance by Seller of its obligations hereunder
have been duly authorized by all requisite action on the part of Seller and no other proceedings on the part of Seller are necessary
to authorize the execution and delivery of this letter agreement and the consummation of the transactions contemplated hereby,
(iv) this letter agreement has been duly executed and delivered by Seller and assuming due authorization, execution and delivery
of this letter agreement by Fundamental Global constitutes a valid and legally binding obligation of Seller, enforceable against
Seller in accordance with its terms except (x) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance, or other laws of general application relating to or affecting the enforcement of creditors’ rights generally,
or (y) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies,
(v) Seller owns, beneficially and/or of record, the BKTI Securities and has good, valid and marketable title to the BKTI Securities,
free and clear of any and all covenants, conditions, restrictions, voting trust arrangements, proxies, liens, charges, encumbrances,
options and adverse claims or rights whatsoever (“Liens”), except for restrictions on transfer arising under
applicable federal and state securities laws, (vi) at the Closing, Seller will deliver to the Purchasers good, valid and marketable
title to the BKTI Securities free and clear of all Liens, except for restrictions on transfer arising under applicable federal
and state securities laws, (vii) the execution and delivery of this letter agreement and the performance by Seller of its obligations
hereunder will not (x) violate or breach any provision of Seller’s organizational or governing documents, (y) violate or
breach any statute, law, rule or regulation applicable to Seller or order applicable to Seller or by which Seller or any of its
properties may be bound or (z) breach, or result in a default under, any contract to which Seller is a party or by which Seller
or any of its properties may be bound except in the case of clauses (y) and (z), where such violations, breaches and defaults
would not affect Seller’s ability to execute, deliver and perform its obligations under this letter agreement in any material
respect and (viii) there is no action, lawsuit, arbitration, claim or proceeding pending or, to the knowledge of Seller, threatened
against Seller that would reasonably be expected to impede the consummation of the transactions described herein. No broker, finder
or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions
contemplated by this letter agreement based upon arrangements made by or on behalf of Seller.

 

    	 

    	 

    

 

3.
Fundamental Global, on behalf of itself and each Purchaser, represents and warrants to Seller, as of the date hereof and as of
the Closing as follows: (i) Fundamental Global is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, (ii) Fundamental Global has all requisite power and authority to execute and deliver this letter
agreement and to consummate the transactions described herein on behalf of itself and each Purchaser, (iii) the execution and
delivery by Fundamental Global of this letter agreement and the performance by Fundamental Global and each Purchaser of its obligations
hereunder have been duly authorized by all requisite action on the part of Fundamental Global and each Purchaser and no other
proceedings on the part of Fundamental Global or any Purchaser are necessary to authorize the execution and delivery of this letter
agreement and the consummation of the transactions contemplated hereby, (iv) this letter agreement has been duly executed and
delivered by Fundamental Global and assuming due authorization, execution and delivery of this letter agreement by Seller constitutes
a valid and legally binding obligation of Fundamental Global, enforceable against Fundamental Global in accordance with its terms
except (x) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of
general application relating to or affecting the enforcement of creditors’ rights generally, or (y) as limited by laws relating
to the availability of specific performance, injunctive relief, or other equitable remedies, (v) the execution and delivery of
this letter agreement and the performance by Fundamental Global and each Purchaser of its obligations hereunder will not (x) violate
or breach any provision of Fundamental Global or any Purchaser’s organizational or governing documents, (y) violate or breach
any statute, law, rule or regulation applicable to Fundamental Global or any Purchaser or order applicable to such person or by
which such person or any of its properties may be bound or (z) breach, or result in a default under, any contract to which Fundamental
Global or any Purchaser is a party or by which such person or any of its properties may be bound, except in the case of clauses
(y) and (z), where such violations, breaches or defaults would not affect such person’s ability to execute, deliver and
perform its obligations under this letter agreement in any material respect, (vi) there is no action, lawsuit, arbitration, claim
or proceeding pending or, to the knowledge of Fundamental Global, threatened against Fundamental Global or any Purchaser that
would reasonably be expected to impede the consummation of the transactions described herein. No broker, finder or investment
banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated
by this letter agreement based upon arrangements made by or on behalf of Purchaser and (vii) the Company’s insider trading
window is open as of the date of this letter agreement.

 

    	 

    	 

    

 

4.
Fundamental Global, on behalf of itself and each Purchaser, acknowledges that Seller, certain of Seller’s affiliates (within
the meaning of Rule 405 promulgated under the Securities Act of 1933, as amended (the “Securities Act”), (“Affiliates”)),
and Seller’s and such Affiliates’ directors, officers, partners, stockholders, members, investors, employees, attorneys,
agents, representatives, as applicable, and successors and assigns thereto (the “Seller Related Parties”) (a)
are existing stockholders of the Company and serve on the Company’s Board of Directors and that Seller and the Seller Related
Parties may now possess and may hereafter possess certain non-public information concerning the Company and its Affiliates and/or
the Securities (the “Non-Public Information”) that may or may not be known by such Purchaser which may constitute
material information with respect to the foregoing, and (b) the Seller is relying on this letter agreement and would not enter
into a transaction to sell the BKTI Securities to such Purchaser absent this letter agreement. Fundamental Global, on behalf of
itself and each Purchaser, agrees to purchase the BKTI Securities from Seller notwithstanding that it is aware that such Non-Public
Information may exist and that Seller may not have disclosed all Non-Public Information to it. Fundamental Global, on behalf of
itself and each Purchaser, acknowledges that none of the members of the Audit Committee of Seller’s Board of Directors who
have approved the sale of the BKTI Securities pursuant to this letter agreement are existing stockholders of the Company or serve
on the Company’s Board of Directors. Fundamental Global, on behalf of itself and each Purchaser, acknowledges that such
Purchaser is an “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) (7) or (8) of Regulation D promulgated
under the Securities Act. Fundamental Global, on behalf of itself and each Purchaser, acknowledges that such Purchaser is a sophisticated
purchaser with respect to the purchase and sale of securities such as the BKTI Securities and that Seller has no obligations to
Fundamental Global or any Purchaser to disclose such Non-Public Information and that if the Non-Public Information were fully
disclosed to Fundamental Global or any Purchaser, the Non-Public Information could foreseeably affect such person’s willingness
to enter into this letter agreement and the price that such person would be willing to pay to purchase the BKTI Securities. Moreover,
such Non-Public Information may indicate that the value of the BKTI Securities is substantially lower or higher than the Cash
Purchase Price. Additionally, Fundamental Global, on behalf of itself and each Purchaser, acknowledges that it has adequate information
concerning the BKTI Securities, and the business and financial condition of the Company and its affiliates, to make an informed
decision regarding the purchase of the BKTI Securities, and has independently and without reliance upon Seller, and based upon
such information as such person has deemed appropriate, made its own analysis and decision to purchase the BKTI Securities from
Seller. Fundamental Global and each Purchaser is experienced, sophisticated and knowledgeable in the trading of securities and
other instruments of private and public companies and understands the disadvantage to which it may be subject on account of any
disparity of the access to, and possession of, such Non-Public Information between such Purchaser and Seller. Fundamental Global,
on behalf of itself and each Purchaser, has conducted an independent evaluation of the BKTI Securities to determine whether to
enter into this letter agreement and, notwithstanding the absence of access by such Purchaser to the Non-Public Information known
by Seller, such person is desirous of entering into this letter agreement and consummating the transactions contemplated hereby.
Fundamental Global, on behalf of itself and each Purchaser, because of, among other things, its business and financial experience,
is capable of evaluating the merits and risks of the transactions contemplated by this letter agreement and of protecting its
own interests in connection with this letter agreement.

 

    	 

    	 

    

 

5.
Fundamental Global, on behalf of itself and each Purchaser, for itself and its successors and/or assigns, to the maximum extent
permitted by law, irrevocably forever releases, discharges and waives any and all claims, rights, causes of action, suits, obligations,
debts, demands, liabilities, controversies, costs, expenses, fees, or damages of any kind (including, but not limited to, any
and all claims alleging violations of federal or state securities laws, common-law fraud or deceit, breach of fiduciary duty,
negligence or otherwise), whether directly, derivatively, representatively or in any other capacity, against the Seller or any
of its respective affiliates, including, without limitation, any and all of their present and/or past directors, officers, members,
partners, employees, fiduciaries, agents or accounts under management, and their respective successors and assigns (collectively,
the “Seller Released Parties”), arising on or prior to the date hereof, which are based upon, arise from or
in any way relate to or involve, directly or indirectly, Seller’s failure to disclose all or any portion of the Non-Public
Information known by it to such Purchaser in connection with the transfer of any portion of the BKTI Securities by Seller to such
Purchaser. Fundamental Global, on behalf of itself and each Purchaser, also agrees that it shall not institute or maintain any
cause of action, suit, complaint or other proceeding against the Seller or any of the Seller Released Parties as a result of such
Seller Released Parties’ failure to disclose fully such Non-Public Information to such Purchaser or otherwise in connection
with this letter agreement. Fundamental Global, on behalf of itself and each Purchaser, also represents that it has not assigned
any claim or possible claim against the Seller or the Seller Released Parties that relates to the Non-Public Information, it fully
intends to release all claims against the Seller and the Seller Released Parties that relate to the Non-Public Information as
set forth above and it has been advised by, and has consulted with counsel with respect to the execution and delivery of this
letter agreement and has been fully apprised of the consequences of the waivers, releases and discharges set forth herein.

 

6.
Seller acknowledges that Purchaser, certain of Purchaser’s Affiliates, and Purchaser’s and such Affiliates’
directors, officers, partners, stockholders, members, investors, employees, attorneys, agents, representatives, as applicable,
and successors and assigns thereto (the “Purchaser Related Parties”) (a) are existing stockholders of the Company
and serve on the Company’s Board of Directors and that Purchaser and the Purchaser Related Parties may now possess and may
hereafter possess Non-Public Information that may or may not be known by Seller which may constitute material information with
respect to the foregoing, and (b) Purchaser is relying on this letter agreement and would not enter into a transaction to purchase
the BKTI Securities from Seller absent this letter agreement. Seller agrees to sell the BKTI Securities to Purchaser notwithstanding
that it is aware that such Non-Public Information may exist and that Purchaser may not have disclosed all Non-Public Information
to it. Seller acknowledges that it is an “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) (7)
or (8) of Regulation D promulgated under the Securities Act. Seller acknowledges that it is a sophisticated seller with respect
to the purchase and sale of securities such as the BKTI Securities and that Purchaser has no obligations to Seller to disclose
such Non-Public Information and that if the Non-Public Information were fully disclosed to Seller, the Non-Public Information
could foreseeably affect Seller’s willingness to enter into this letter agreement and the price at which Seller would be
willing sell the BKTI Securities. Moreover, such Non-Public Information may indicate that the value of the BKTI Securities is
substantially lower or higher than the Cash Purchase Price. Additionally, Seller acknowledges that it has adequate information
concerning the BKTI Securities, and the business and financial condition of the Company and its affiliates, to make an informed
decision regarding the sale of the BKTI Securities, and has independently and without reliance upon Purchaser, and based upon
such information as Seller has deemed appropriate, made its own analysis and decision to sell the BKTI Securities to Purchaser.
Seller is experienced, sophisticated and knowledgeable in the trading of securities and other instruments of private and public
companies and understands the disadvantage to which it may be subject on account of any disparity of the access to, and possession
of, such Non-Public Information between Purchaser and Seller. Seller has conducted an independent evaluation of the BKTI Securities
to determine whether to enter into this letter agreement and, notwithstanding the absence of access by Seller to the Non-Public
Information known by Purchaser, Seller is desirous of entering into this letter agreement and consummating the transactions contemplated
hereby. Seller, because of, among other things, its business and financial experience, is capable of evaluating the merits and
risks of the transactions contemplated by this letter agreement and of protecting its own interests in connection with this letter
agreement.

 

    	 

    	 

    

 

7.
Seller for itself and its successors and/or assigns, to the maximum extent permitted by law, irrevocably forever releases, discharges
and waives any and all claims, rights, causes of action, suits, obligations, debts, demands, liabilities, controversies, costs,
expenses, fees, or damages of any kind (including, but not limited to, any and all claims alleging violations of federal or state
securities laws, common-law fraud or deceit, breach of fiduciary duty, negligence or otherwise), whether directly, derivatively,
representatively or in any other capacity, against the Purchaser, or any of their respective affiliates, including, without limitation,
any and all of their present and/or past directors, officers, members, partners, employees, fiduciaries, agents or accounts under
management, and their respective successors and assigns (collectively, the “Purchaser Released Parties”), arising
on or prior to the date hereof, which are based upon, arise from or in any way relate to or involve, directly or indirectly, Purchaser’s
failure to disclose all or any portion of the Non-Public Information known by it to Seller in connection with the transfer of
any portion of the BKTI Securities by Seller to such Purchaser. Seller also agrees that it shall not institute or maintain any
cause of action, suit, complaint or other proceeding against the Purchaser or any of the Purchaser Released Parties as a result
of such Purchaser Released Parties’ failure to disclose fully such Non-Public Information to Seller or otherwise in connection
with this letter agreement. Seller also represents that it has not assigned any claim or possible claim against the Purchaser
or the Purchaser Released Parties that relates to the Non-Public Information, it fully intends to release all claims against the
Purchaser and the Purchaser Released Parties that relate to the Non-Public Information as set forth above and it has been advised
by, and has consulted with counsel with respect to the execution and delivery of this letter agreement and has been fully apprised
of the consequences of the waivers, releases and discharges set forth herein.

 

8.
The obligation of Seller to sell, transfer and assign the BKTI Securities to Purchaser at the Closing hereunder is subject to
the satisfaction of the following conditions as of the Closing:

 

(i)
the representations and warranties of Purchaser in Section 3 hereof shall be true and correct in all material respects on and
as of the Closing; and

 

(ii)
Purchaser shall have performed and complied in all material respects with all agreements and conditions required by this letter
agreement to be performed or complied with by it prior to or on the Closing.

 

    	 

    	 

    

 

9.
The obligation of Purchaser to purchase the BKTI Securities from Seller at the Closing is subject to the satisfaction of the following
conditions as of the Closing:

 

(i)
the representations and warranties of Seller in Section 2 shall be true and correct in all material respects on and as of the
Closing; and

 

(ii)
Seller shall have performed and complied in all material respects with all agreements and conditions required by this letter agreement
to be performed or complied with by it prior to or on the Closing.

 

10.
All representations and warranties contained herein shall survive the execution and delivery of this letter agreement and the
Closing.

 

11.
Following the Closing, each of the parties hereto shall execute and deliver such additional documents, instruments, conveyances
and assurances, and take such further actions as may be reasonably required to carry out the provisions hereof and give effect
to the transactions contemplated by this letter agreement.

 

12.
This letter agreement may be terminated at any time prior to the Closing (a) by the mutual written consent of Purchaser and Seller
or (b) by either Purchaser or Seller if (i) a breach of any provision of this letter agreement has been committed by the other
party and such breach has not been cured within ten (10) days following receipt by the breaching party of written notice of such
breach, or (ii) the Closing does not occur by September 11, 2018.

 

13.
Upon breach of any representation, warranty or covenant contained in this letter agreement, including but not limited to Seller’s
failure to convey the BKTI Securities to Purchaser or Purchaser’s failure to remit the Cash Purchase Price, in accordance
with the terms of this letter agreement, the non-defaulting party shall be entitled to seek all remedies available to it, at law
or in equity, including an action for specific performance.

 

14.
All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the
party incurring such costs and expenses.

 

15.
All notices, requests, consents, claims, demands, waivers and other communications hereunder (each, a “Notice”)
shall be in writing and addressed to the parties at the addresses set forth on the first page of this letter agreement (or to
such other address that may be designated by the receiving party from time to time in accordance with this section). All Notices
shall be delivered by personal delivery, nationally recognized overnight courier (with all fees pre-paid), facsimile or e-mail
of a PDF document (with confirmation of transmission) or certified or registered mail (in each case, return receipt requested,
postage prepaid). Except as otherwise provided in this letter agreement, a Notice is effective only (a) upon receipt by the receiving
party in the case of personal delivery, (b) on the following business day if sent by nationally recognized overnight courier,
(c) on the date sent, if sent by facsimile or email (or if such date is not a business day, on the following business day), and
(d) five business days after mailing, if sent by certified or registered mail.

 

    	 

    	 

    

 

16.
This letter agreement may only be amended, modified or supplemented by an agreement in writing signed by each party hereto. No
waiver by any party or any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the
party so waiving. Except as otherwise set forth in this letter agreement, no failure to exercise, or delay in exercising, any
rights, remedy, power or privilege arising from this letter agreement shall operate or be construed as a waiver thereof; nor shall
any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof
or the exercise of any other right, remedy, power or privilege.

 

17.
If any term or provision of this letter agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality
or unenforceability shall not affect any other term of provision of this letter agreement or invalidate or render unenforceable
such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal
or unenforceable, the parties hereto shall negotiate in good faith to modify this letter agreement so as to effect the original
intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby
be consummated as originally contemplated to the greatest extent possible.

 

18.
Each of Seller and Fundamental Global agrees that this letter agreement, including, without limitation, the representations, warranties,
agreements, waivers, releases, acceptances and acknowledgments contained herein, shall be binding upon and inure to the benefit
of Seller and Fundamental Global and their respective successors and assigns, and shall survive the execution and delivery of
this letter agreement and the consummation of the sale of the BKTI Securities to the Purchasers.

 

19.
This letter agreement constitutes the entire agreement between the parties, supersedes any prior agreements and understandings,
written or oral, between the parties with respect to the subject matter of the agreement, and contains the only representations
or warranties on which the parties are entitled to rely.

 

20.
This letter agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall
be deemed to be one and the same agreement. A signed copy of this letter agreement delivered by facsimile, e-mail or other means
of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this letter
agreement.

 

    	 

    	 

    

 

21.
This letter agreement shall be construed in accordance with the laws of the State of Nebraska and the parties agree to and accept
the exclusive jurisdiction of the courts of appropriate jurisdiction sitting in Omaha, Nebraska with respect to any action relating
to this letter agreement.

 

Please
indicate your acknowledgment and agreement to the foregoing by signing below where indicated.

 

SELLER:

 

	Ballantyne
    Strong Inc.	 
	 	 	 
	By:	/s/
    William J. Gerber	 
	Name:
    	William
    J. Gerber	 
	Title:
    	Director,
Audit Committee Chair
	 

 

ACKNOWLEDGED
AND AGREED

AS
OF THE DATE FIRST WRITTEN ABOVE:

 

	PURCHASER:	 
	 	 	 
	Fundamental
    Global Investors, LLC	 
	 	 	 
	By:	/s/
    D. Kyle Cerminara	 
	Name:	D.
    Kyle Cerminara	 
	Title:	Chief
Executive Officer, Partner and Manager
	 

 

    	 

    	 

    

 

SCHEDULE
A

 

	Purchaser	 	BKTI Securities	 	 	Cash Purchase Price	 
	 	 	 	 	 	 	 
	Fundamental Activist Fund I, LP	 	 	692,534	 	 	$	2,735,509.30	 
	 	 	 	 	 	 	 	 	 
	CWA Asset Management Group, LLC	 	 	454,553	 	 	$	1,795,484.35

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