Document:

EXHIBIT 4.05

 

Description
of Securities Registered under Section 12 of the Exchange Act

 

The
following is a summary of the material terms of our capital stock. This summary does not purport to be exhaustive and is qualified
in its entirety by reference to our certificate of incorporation, as amended, and bylaws and to the applicable provisions of the
Delaware General Corporation Law. Copies of our certificate of incorporation, as amended, and bylaws have been filed with the
SEC.

 

General

 

Our authorized capital stock consists of 255,000,000 shares. The
authorized capital stock is divided into 5,000,000 shares of preferred stock, par value $0.001 per share, and 250,000,000 shares
of common stock, par value $0.001 per share. As of December 31, 2019, we had issued and outstanding 12,917,295 shares of common
stock, held by approximately 116 stockholders of record. Each share of common stock has the same relative rights as, and is identical
in all respects with, each other share of common stock. As of December 31, 2019, no shares of preferred stock were issued or outstanding.

 

Common Stock

 

Holders
of common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders and do not have
cumulative voting rights. Thus, holders of a majority of the shares of common stock entitled to vote in any election of directors
may elect all of the directors standing for election. Holders of common stock are entitled to receive ratably any dividends that
may be declared by our board of directors out of funds legally available for dividends, subject to any preferential dividend rights
of outstanding preferred stock. If we liquidate, dissolve or wind up, the holders of common stock are entitled to receive ratably
all of our assets available after payment of all debts and other liabilities, subject to the prior rights of any outstanding preferred
stock. Holders of common stock have no preemptive, subscription, redemption or conversion rights or any rights to share in any
sinking fund. The rights, preferences and privileges of the holders of common stock are subject to, and may be adversely affected
by, the rights of the holders of shares of any of our outstanding preferred stock.

 

Preferred Stock

 

Our
certificate of incorporation authorizes the issuance of preferred stock from time to time in one or more series with rights and
privileges that might be senior to our common stock, without the consent of holders of the common stock. Our certificate also
authorizes the board of directors to fix the powers, rights, designations, preferences, qualifications, limitations and restrictions,
and dividend, voting and conversion rights pertaining to each series of preferred stock that we issue. The issuance of preferred
stock with voting and other rights may adversely affect the voting power of the holders of our common stock and could have the
effect of delaying, deferring or preventing a change in control. Except as described below, we have no present plans to issue
any shares of preferred stock.

 

On January 27, 2006, we filed a certificate of designation of Series
A Junior Participating Preferred Stock with the Secretary of State of the State of Delaware and the number of shares so designated
is 1,000,000, par value $0.001. As of December 31, 2019, there were no shares of Series A Junior Participating Preferred Stock
outstanding.

 

Rights Agreement

 

On
April 8, 2016, our board of directors adopted a rights plan and declared a dividend of one preferred share purchase right for
each outstanding share of common stock. The dividend was payable to our stockholders as of the record date of April 18, 2016.
The terms of the rights and the rights plan are set forth in a Rights Agreement between us and Computershare Trust Company, N.A.,
as rights agent, dated as of April 8, 2016, as amended on April 8, 2019.

 

The
Company’s Board of Directors (the “Board”) adopted the Rights Agreement to protect the Company’s ability
to carry forward its net operating losses (the “NOLs”), which the Company believes are a substantial asset of the
Company. The Company has experienced substantial operating losses in previous years, and under the Internal Revenue Code of 1968,
as amended (the “Code”), and rules promulgated by the Internal Revenue Service, the Company may “carry forward”
its NOLs in certain circumstances to offset current and future earnings, and thus reduce its federal income tax liability (subject
to certain requirements and restrictions). If the Company experiences an “Ownership Change,” as defined in Section 382
of the Code, its ability to use its NOLs could be substantially limited or lost altogether.

    	 

    	 

    

The
Rights Agreement imposes a significant penalty upon any person or group that acquires 4.9% or more (but less than 50%) of the
Company’s then-outstanding Common Stock without the prior approval of the Board, excluding any person or group who would
otherwise qualify as an Acquiring Person (as defined below) on the date of the Rights Agreement. Moreover, the Board may exempt
any person or group that owns 4.9 percent or more. Subject to the limitations set forth in the Rights Agreement, Carlson Capital,
L.P. and its Affiliates and Associates are Exempt Persons (each as defined in the Rights Agreement). A person or group that acquires
a percentage of the Company’s Common Stock in excess of the applicable threshold but less than 50 percent of the Company’s
then-outstanding Common Stock is called an “Acquiring Person.” Any rights held by an Acquiring Person are void and
may not be exercised.

 

The
Company’s Board authorized the issuance of one Right per each share of the Company’s Common Stock outstanding on the
Record Date. If the Rights become exercisable, each Right would allow its holder to purchase from the Company one one-hundredth
of a share of the Company’s Series A Junior Participating Preferred Stock, par value $0.001 (the “Preferred Stock”),
for a purchase price of $50.00. Each fractional share of Preferred Stock would give the stockholder approximately the same dividend,
voting and liquidation rights as one share of the Company’s Common Stock. Prior to exercise, however, a Right will not give
its holder any dividend, voting or liquidation rights.

 

The
Rights will not be exercisable until 10 days after a public announcement by the Company that a person or group has become an Acquiring
Person.

 

Until
the date that the Rights become exercisable (the “Distribution Date”), the Company’s Common Stock certificates
will evidence the Rights and will contain a notation to that effect. Any transfer of shares of Common Stock prior to the Distribution
Date will constitute a transfer of the associated Rights. After the Distribution Date, the Rights will be separated from the Common
Stock and be evidenced by a rights certificate, which the Company will mail to all holders of the rights that are not void.

 

If
a person or group already is or becomes an Acquiring Person after the Distribution Date, all holders of Rights, except the Acquiring
Person, may exercise their rights to purchase shares of the Company’s Common Stock with a market value of two times the
purchase price (or other securities or assets as determined by the Company’s Board of Directors) upon payment of the purchase
price (a “Flip-In Event”).

 

After
the Distribution Date, if a Flip-In Event has already occurred and the Company is acquired in a merger or similar transaction,
all holders of the Rights except the Acquiring Person may exercise their Rights upon payment of the purchase price to purchase
shares of the acquiring corporation with a market value of two times the purchase price of the Rights (a “Flip-Over Event”).

 

Rights
may be exercised to purchase shares of the Company’s Preferred Stock only after the occurrence of the Distribution Date
and prior to the occurrence of a Flip-In Event as described above. A Distribution Date resulting from any occurrence described
above would necessarily follow the occurrence of a Flip-In Event, in which case the Rights could be exercised to purchase shares
of Common Stock or other securities as described above.

 

The
Rights will expire on April 8, 2022 unless earlier redeemed or exchanged.

 

The
Company’s Board may redeem all (but not less than all) of the Rights for a redemption price of $0.0001 per Right at any
time prior to the later of the Distribution Date and the date of the first public announcement or disclosure by the Company that
a person or group has become an Acquiring Person. Once the Rights are redeemed, the right to exercise the Rights will terminate,
and the only right of the holders of the Rights will be to receive the redemption price. The redemption price will be adjusted
if the Company declares a stock split or issues a stock dividend on its Common Stock.

 

After
the later of the Distribution Date and the date of the first public announcement by the Company that a person or group has become
an Acquiring Person, but before an Acquiring Person owns 50 percent or more of the Company’s outstanding Common Stock, the
Company’s Board may exchange each Right (other than the Rights that have become void) for one share of Common Stock or an
equivalent security.

    	 

    	 

    

The
Company’s Board may adjust the purchase price of the Preferred Stock, the number of shares of the preferred shares issuable
and the number of outstanding Rights to prevent dilution that may occur as a result of certain events, including a stock dividend,
a stock split or a reclassification of the Preferred Stock or Common Stock. No adjustments to the purchase price of less than
1 percent will be made.

 

Before
the time the Rights cease to be redeemable, the Company’s Board may amend or supplement the Rights Agreement without the
consent of the holders of the Rights, except that no amendment may decrease the redemption price below $0.0001 per right. At any
time thereafter, the Company’s Board may amend or supplement the Rights Agreement only to cure an ambiguity, to alter time
period provisions, to correct inconsistent provisions or to make any additional changes to the Rights Agreement, but only to the
extent that those changes do not impair or adversely affect any Rights holder and do not result in the Rights becoming redeemable.

 

Stockholders’
Agreement

 

We
entered into a Stockholders’ Agreement, dated as of August 18, 2014, with funds affiliated with Carlson Capital that own
our common stock, pursuant to which, among other things, the Company granted funds affiliated with Carlson Capital that own our
common stock approval rights with respect to certain transactions including the incurrence of indebtedness over specified amounts,
the sale of assets over specified amounts, declaration of dividends, loans, capital contributions to or investments in any third
party over specified amounts, changes in the size of the board of directors or changes in the our CEO. In addition, the funds
affiliated with Carlson Capital that own our common stock agreed that until the earlier of the fifth anniversary of the Initial
Share Issuance or the date such funds and their affiliates own less than 40 percent of the outstanding shares of our common stock,
such funds and their affiliates will not increase their voting percentage of common stock to greater than 76 percent or cause
us to engage in any buybacks in excess of 3 percent of the then outstanding shares of common stock without offering to acquire
all of the then-outstanding common stock at the same price and on the same terms and conditions. The funds affiliated with Carlson
Capital that own our common stock further agreed that, until the earlier of the fifth anniversary of the Initial Share Issuance,
or the date such funds and their affiliates own less than 40 percent of the outstanding shares of common stock, such funds will
not sell shares of common stock to any purchaser that would result in such purchaser having a voting percentage of common stock
in excess of 40 percent (and with neither Carlson Capital and its affiliates nor any other holder of common stock and its affiliates
holding a voting percentage in excess of 40 percent) unless the purchaser contemporaneously makes a binding offer to acquire all
of our then-outstanding common stock, at the same price and on the same terms and conditions as the purchase of shares from the
funds affiliated with Carlson Capital. The funds affiliated with Carlson Capital also agreed that, until the earlier of the eighth
anniversary of the Initial Share Issuance or the date they and their affiliates own less than 40 percent of the outstanding shares
of common stock, such funds will not engage in a transaction as described in Rule 13e-3 under the Securities Exchange Act of 1934,
as amended, without offering to acquire all of the then-outstanding common stock at the same price and on the same terms and conditions.
Additionally, until the earlier of the eighth anniversary of the Initial Share Issuance or the date the funds affiliated with
Carlson Capital and their affiliates own less than 40 percent of the outstanding shares of common stock, such funds agrees to
maintain at least two directors who are not affiliates of Carlson Capital or us, and agrees that any related party transaction
or deregistration of the common stock from SEC reporting requirements requires the approval of such non-affiliated directors.
The stockholders’ agreement also contains a right for an affiliate of Carlson Capital to serve as the exclusive standby
purchaser for future rights offerings, and a pre-emptive right for the funds associated with Carlson Capital to purchase their
pro rata share of any additional offerings other than such rights offerings.

 

The
stockholders’ agreement also provides that, until the second anniversary of the Initial Share Issuance, we will not seek,
negotiate or consummate any sale of common stock (with certain customary exceptions), except through one or more rights offerings
substantially on the same structural terms as the rights offering. In addition, the funds affiliated with Carlson Capital that
own our common stock agreed that until the earlier of the fifth anniversary of the Initial Share Issuance or the date they own
less than 40 percent of the outstanding shares of common stock, such funds would provide support to us in various ways, including
with respect to sourcing financing and other business opportunities.

    	 

    	 

    

Anti-takeover
Provisions

 

Section
203 of the Delaware General Corporation Law provides that, subject to certain exceptions specified therein, an “interested
stockholder” of a Delaware corporation may not engage in any business combination with the corporation for a three-year
period following the time that such stockholder becomes an “interested stockholder” unless (1) prior to such time,
the board of directors of the corporation approved either the business combination or the transaction which resulted in the stockholder
becoming an “interested stockholder,” (2) upon consummation of the transaction which resulted in the stockholder becoming
an “interested stockholder,” the interested stockholder owned at least 85 percent of the voting stock of the corporation
outstanding at the time the transaction commenced (excluding certain shares), or (3) at or subsequent to such time, the business
combination is approved by the board of directors of the corporation and authorized at an annual or special meeting of stockholders.
Under certain circumstances, Section 203 makes it more difficult for a person who would be an “interested stockholder”
to effect various business combinations with a corporation for a three-year period, although the stockholders may elect to exclude
a corporation from the restrictions imposed thereunder. Our certificate of incorporation does not exclude us from the restrictions
imposed under Section 203. The provisions of Section 203 may encourage companies interested in acquiring us to negotiate in advance
with our board, since the stockholder approval requirement would be avoided if a majority of the directors then in office approve
either the business combination or the transaction which results in the stockholder becoming an interested stockholder. These
provisions also may have the effect of preventing changes in our management. It is possible that such provisions could make it
more difficult to accomplish transactions which stockholders may otherwise deem to be in their best interests.

 

Our
board of directors, pursuant to resolutions taken at a meeting on August 9, 2014, approved the transactions contemplated by the
Purchase Agreement, including the Initial Share Issuance, the offerings, and the other transactions described in this prospectus,
so that Section 203 of the Delaware General Corporation Law would not be applicable to the foregoing transactions.

 

Transfer
Agent and Registrar

 

The
transfer agent and registrar for our common stock is Computershare Trust Company, N.A., and its telephone number is 1-800-962-4284.

 

Nasdaq Capital
Market

 

Our common stock
is listed on the Nasdaq Capital Market under the symbol “SWKH.”Exhibit
10.1

 

AMENDMENT
#3 TO EMPLOYMENT AGREEMENT

 

THIS
AMENDMENT #3 TO EMPLOYMENT AGREEMENT (this “Amendment”) is made and entered into as of March 27, 2020 (the
“Effective Date”), between NTN Buzztime, Inc., a Delaware corporation (the “Company”), and
Allen Wolff, an individual (“Executive”).

 

RECITALS

 

THE
PARTIES ENTER THIS AMENDMENT on the basis of the following facts, understandings and intentions:

 

	 	A.	Executive
    commenced employment with the Company as of December 29, 2014.
	 	 	 
	 	B.	The
    Company and Executive are parties to that certain Employment Agreement made and entered into March 19, 2018 (the “Employment
    Agreement”), to that certain Amendment #1 to Employment Agreement made and entered into September 17, 2019 (the
    “1st Amendment,”) and to that certain Amendment #2 to Employment Agreement made and entered
    into on January 14, 2020 (the “2nd Amendment,” and collectively with the Employment Agreement
    and the 1st Amendment, the “Existing Employment Agreement”), pursuant to which, among other
    things, Executive served as the Company’s interim Chief Executive Office from September 17, 2019 through January 13,
    2020, and has been serving as the Company’s Chief Executive Officer since January 14, 2020.
	 	 	 
	 	C.	Executive
    desires to continue employment with the Company on the terms and conditions set forth in this Amendment.
	 	 	 
	 	D.	The
    Nominating and Corporate Governance/Compensation Committee (the “Committee”) of the Board of Directors
    of the Company has determined and approved the terms of Executive’s continued employment on the terms and conditions
    set forth in this Amendment.
	 	 	 
	 	E.	This
    Amendment, the Existing Employment Agreement and all related documents referenced in the Existing Employment Agreement shall
    govern the employment relationship between the Executive and the Company from and after the Effective Date.

 

NOW,
THEREFORE, in consideration of the above recitals incorporated herein and the mutual covenants and promises contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby expressly acknowledged, the parties agree
as follows:

 

	1.	Base
    Salary Deferral. Notwithstanding anything to the contrary in the Existing Employment Agreement, 44.615385% of all payments
    of Executive’s base salary for services rendered on May 1, 2020 and through October 31, 2020 shall be deferred, and
    the accumulated deferred base salary amounts shall be paid to Executive on the earlier of October 31, 2020 or such time as
    the Company’s Board of Directors determines in good faith that the Company is in the financial position to pay such
    accumulated deferred salary.
	 	 
	2.	Governing
    Law. This Amendment, and all questions relating to its validity, interpretation, performance and enforcement, as well
    as the legal relations hereby created between the parties hereto, shall be governed by and construed under, and interpreted
    and enforced in accordance with, the laws of the State of California, notwithstanding any California or other conflict of
    law provision to the contrary.
	 	 
	3.	Severability.
    If any provision of this Amendment or the application thereof is held invalid, the invalidity shall not affect other provisions
    or applications of this Amendment which can be given effect without the invalid provisions or applications and to this end
    the provisions of this Amendment are declared to be severable.
	 	 
	4.	Conflict;
    Agreement. Except as modified by this Amendment, the Existing Employment Agreement, together with all stock unit agreements,
    stock option agreements and other agreement for equity-based compensation and the exhibits contemplated thereby, including
    the Confidentiality and Work for Hire Agreement and Mutual Agreement to Arbitrate, embody the entire agreement of the parties
    hereto respecting the matters within its scope. If there is a conflict between the terms and conditions of this Amendment
    and the Existing Employment Agreement, this Amendment shall take precedence. Otherwise, all other terms and conditions of
    the Existing Employment Agreement remain in full force and effect.
	 	 
	5.	Counterparts.
    This Amendment may be executed in any number of counterparts, each of which shall be deemed an original as against any party
    whose signature appears thereon, and all of which together shall constitute one and the same instrument. This Amendment shall
    become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the
    parties reflected hereon as the signatories. Photographic copies of such signed counterparts may be used in lieu of the originals
    for any purpose.
	 	 
	6.	Legal
    Counsel; Mutual Drafting. Each party recognizes that this is a legally binding contract and acknowledges and agrees that
    they have had the opportunity to consult with legal counsel of their choice. Each party has cooperated in the drafting, negotiation
    and preparation of this Amendment. Hence, in any construction to be made of this Amendment, the same shall not be construed
    against either party on the basis of that party being the drafter of such language. The Executive agrees and acknowledges
    that he has read and understands this Amendment, is entering into it freely and voluntarily, and has been advised to seek
    counsel prior to entering into this Amendment and has had ample opportunity to do so.

 

    	 	2	 

     

    

 

IN
WITNESS WHEREOF, the Company and the Executive have executed this Amendment as of the first date set forth above.

 

	 	“COMPANY”

	 	 	 
	 	NTN Buzztime, Inc., a Delaware corporation
	 	 	 
	 	By:	/s/
    Richard Simtob
	 	Name:	Richard
    Simtob
	 	Title:	Chairman
    of the Nominating and Corporate Governance/Compensation Committee
	 	 	 
	 	“EXECUTIVE”

	 	 	 
	 	 	/s/
    Allen Wolff
	 	 	Allen
    Wolff

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