Item 1.02 Termination of a Material Definitive Agreement

On September 4, 2009, Ballantyne Strong, Inc. ("Ballantyne") and Christopher Beach mutually terminated the Consulting Agreement entered into on April 1, 2009. The Consulting Arrangement was originally for a one-year period however, both parties concluded that the objectives of the Consulting Agreement had been achieved and the services of Mr. Beach were no longer required. The Termination Agreement dated September 4, 2009 provided for a pro rata vesting of the restricted stock granted to Mr. Beach under the Consulting Agreement. Compensation received since the commencement of the Consulting Agreement of cash and restricted stock amounted to $18,144 and $18,279, respectively.

Mr. Beach remains a member of Ballantyne's Board of Directors and the Chairman of the Compensation Committee.