Document:

ntnbuzz_10q-ex1003.htm

Exhibit 10.3

NTN BUZZTIME INC.

2010 PERFORMANCE INCENTIVE PLAN

NONSTATUTORY STOCK OPTION AGREEMENT

 

NTN Buzztime, Inc., a Delaware corporation (the “Company”), hereby grants an Option to purchase shares of its Common Stock (the “Shares”) to the Optionee named below.  The terms and conditions of the Option are set forth in this cover sheet, in the attachment and in the NTN Buzztime, Inc. 2010 Performance Incentive Plan (the “Plan”).

 

	
Date of Option Grant:

	
 

	
, [YEAR]

	
Name of Optionee:

	  

	
Number of Shares Covered by Option:

	  

	 

	
Exercise Price per Share:

	
$                   .          

	
Fair Market Value of a Share on Date of Option Grant:

	

$                   .          

	
Expiration Date:

	
 

	
, [YEAR]  [DO NOT EXCEED TEN YEARS FROM GRANT]

	
Vesting Calculation Date:

	  

	

, [YEAR]

 

Vesting Schedule:

 

Subject to all the terms of the attached Agreement, your right to purchase Shares under this Option shall vest as to one-fourth (1/4) of the total number of Shares covered by this Option, as shown above, on the first anniversary of the Vesting Calculation Date.  Thereafter, the number of Shares which you may purchase under this Option shall vest at the rate of one-forty-eighth (1/48) of the total number of Shares covered by this Option per calendar month on the last day of each of the thirty-six (36) months following the month of the first anniversary of the Vesting Calculation Date.  The resulting aggregate number of vested Shares will be rounded to the nearest whole number.  No Shares will vest after your Service has terminated for any reason.

 

By signing this cover sheet, you agree to all of the terms and conditions described in the attached Agreement, the Plan and Plan prospectus, copies of which are also enclosed.

 

	
Optionee:

	
 

	 
	  	
(Signature)

	 
	
Company:

	  

	 
	  	
(Signature)

	 
	
Title:

	  

	 
	 	 	 

Attachment

 

  

  

  

NTN BUZZTIME, INC.

2010 PERFORMANCE INCENTIVE PLAN

 

NONSTATUTORY STOCK OPTION AGREEMENT

 

	

The Plan and

Other Agreements

	 	
The text of the Plan is incorporated in this Agreement by reference.  Certain capitalized terms used in this Agreement are defined in the Plan.

	  	 	
This Agreement and the Plan constitute the entire understanding between you and the Company regarding this Option.  Any prior agreements, commitments or negotiations concerning this Option are superseded.

	  	 	  
	
Nonstatutory Stock Option

	 	
This Option is not intended to be an Incentive Stock Option under section 422 of the Code and will be interpreted accordingly.

 

	  	 	
This Option is not intended to be deferred compensation under section 409A of the Code and will be interpreted accordingly.

	  	 	  
	
Vesting

	 	
This Option is only exercisable before it expires and then only with respect to the vested portion of the Option.  This Option will vest according to the Vesting Schedule on the attached cover sheet.

	  	 	  
	
Term

	 	
Your Option will expire in any event no later than the Expiration Date, as shown on the cover sheet.  Your Option will expire earlier if your Service terminates, as described below.

 

	  	 	
If the Expiration Date specified in the attached cover sheet falls on a day on which the NYSE Amex (“AMEX”) is open for trading, then any unexercised portion of this Option that is outstanding shall be forfeited without consideration as of 3:45 P.M. New York time on the Expiration Date.

 

	  	 	
However, if the Expiration Date specified in the attached cover sheet falls on any day on which the AMEX is not open for trading, then your ability to exercise this Option will terminate as of 3:45 P.M. New York time on the last day in which the AMEX is open for trading that occurs immediately prior to the Expiration Date.

	  	 	  
	
Termination of Service – General

	 	
If your Service terminates for any reason other than (i) being terminated by the Company for Cause or (ii) due to your death or Disability, then your Option will expire at the close of business at Company headquarters on the date that is ninety (90) days after your Termination Date.

  

2

  

	
Termination of Service - 

Death or Disability

	 	
If your Service terminates because of your death or Disability, then your Option will expire at the close of business at Company headquarters on the date that is twelve (12) months after your Termination Date.  If your Service terminates because of your death, then your estate or heirs may exercise the vested portion of your Option during this twelve (12) month period.

	 	 	 
	
Termination of Service – 

by the Company for Cause

	 	
If your Service is terminated by the Company for Cause or if you commit an act(s) of Cause while this Option is outstanding, as determined by the Committee in its sole discretion, then you shall immediately forfeit all rights to your Option and the Option shall immediately expire.

	 	 	 
	
Leaves of Absence

	 	
For purposes of this Option, your Service does not terminate when you go on a bona fide leave of absence that was approved by the Company in writing, if the terms of the leave provide for continued Service crediting, or when continued Service crediting is required by applicable law.  Your Service terminates in any event when the approved leave ends unless you immediately return to active work.

 

The Company determines which leaves count for this purpose, and when your Service terminates for all purposes under the Plan.

	 	 	 
	
Notice of Exercise

	 	
When you wish to exercise this Option, you must notify the Company by filing a “Notice of Exercise” form at the address given on the form.  Your notice must specify how many Shares you wish to purchase.  Your notice must also specify how your Shares should be registered (in your name only or in your and your spouse’s names as community property or as joint tenants with right of survivorship).  The notice will be effective when it is received by the Company.

 

If someone else wants to exercise this Option after your death, that person must prove to the Company’s satisfaction that he or she is entitled to do so.

	 	 	 
	
Form of Payment

	 	
When you submit your notice of exercise, you must include payment of the Exercise Price for the Shares you are purchasing.  Payment may be made in one (or a combination) of the following forms:

 

·    Cash, your personal check, a cashier’s check or a money order.

·    Shares which have already been owned by you for more than six (6) months and which are surrendered to the Company.  The Fair Market Value of the Shares, determined as of the effective date of the Option exercise, will be applied to the Exercise Price.

  

3

  

	  	 	
·    To the extent a public market for the Shares exists as determined by the Company, by Cashless Exercise through delivery (on a form prescribed by the Company) of an irrevocable direction to a securities broker to sell Shares and to deliver all or part of the sale proceeds to the Company in payment of the aggregate Exercise Price.

	 	 	 
	
Withholding Taxes

	 	
You will be solely responsible for payment of any and all applicable taxes associated with this Option.

 

You will not be allowed to exercise this Option unless you make acceptable arrangements to pay any withholding or other taxes that may be due as a result of the Option exercise or sale of Shares acquired under this Option.

	 	 	 
	
Restrictions on Exercise and Resale

	 	
By signing this Agreement, you agree not to (i) exercise this Option (“Exercise Prohibition”), or (ii) sell, transfer, dispose of, pledge, hypothecate, make any short sale of, or otherwise effect a similar transaction of any Shares acquired under this Option (each a “Sale Prohibition”) at a time when applicable laws, regulations or Company or underwriter trading policies prohibit the exercise or disposition of Shares.  The Company will not permit you to exercise this Option if the issuance of Shares at that time would violate any law or regulation.  Notwithstanding anything to the contrary, this Option is granted on the condition that the Company’s stockholders approve the Plan prior to February 3, 2011.  You understand and agree that this Option may not be exercised unless the Company's stockholders timely approve the Plan.  If the Company’s stockholders do not approve the Plan prior to February 3, 2011, then this Option shall be immediately forfeited without consideration.  The Company shall have the right to designate one or more periods of time, each of which generally will not exceed one hundred eighty (180) days in length (provided however, that such period may be extended in connection with the Company’s release (or announcement of release) of earnings results or other material news or events), and to impose an Exercise Prohibition and/or Sale Prohibition, if the Company determines (in its sole discretion) that such limitation(s) is needed in connection with a public offering of Shares or to comply with an underwriter’s request or trading policy, or could in any way facilitate a lessening of any restriction on transfer pursuant to the Securities Act or any state securities laws with respect to any issuance of securities by the Company, facilitate the registration or qualification of any securities by the Company under the Securities Act or any state securities laws, or facilitate the perfection of any exemption from the registration or qualification requirements of the Securities Act or any applicable state securities laws for the issuance or transfer of any securities.  The Company may issue stop/transfer instructions and/or appropriately legend any stock certificates issued pursuant to this Option in order to ensure compliance with the foregoing.  Any such Exercise Prohibition shall not alter the vesting schedule set forth in this Agreement other than to limit the periods during which this Option shall be exercisable.

  

4

  

	  	 	
If the sale of Shares under the Plan is not registered under the Securities Act, but an exemption is available which requires an investment or other representation, you shall represent and agree at the time of exercise that the Shares being acquired upon exercise of this Option are being acquired for investment, and not with a view to the sale or distribution thereof, and shall make such other representations as are deemed necessary or appropriate by the Company and its counsel.

 

You may also be required, as a condition of exercise of this Option, to enter into any Company stockholder agreement or other agreements that are applicable to stockholders.

	 	 	 
	
Transfer of Option

	 	
Prior to your death, only you may exercise this Option.  You cannot transfer, assign, alienate, pledge, attach, sell, or encumber this Option.  If you attempt to do any of these things, this Option will immediately become invalid.  You may, however, dispose of this Option in your will or it may be transferred by the laws of descent and distribution.  Regardless of any marital property settlement agreement, the Company is not obligated to honor a notice of exercise from your spouse, nor is the Company obligated to recognize your spouse’s interest in your Option in any other way.

	 	 	 
	
Retention Rights

	 	
Your Option or this Agreement does not give you the right to be retained by the Company (or any Parent or any Subsidiaries or Affiliates) in any capacity.  The Company (or any Parent and any Subsidiaries or Affiliates) reserves the right to terminate your Service at any time and for any reason.

 

This Option and the Shares subject to the Option are not intended to constitute or replace any pension rights or compensation and are not to be considered compensation of a continuing or recurring nature, or part of Optionee’s normal or expected compensation, and in no way represent any portion of Optionee’s salary, compensation or other remuneration for any purpose, including but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments.

  

5

  

	
Stockholder Rights

	 	
You, or your estate or heirs, have no rights as a stockholder of the Company until a certificate for your Option’s Shares has been issued.  No adjustments are made for dividends or other rights if the applicable record date occurs before your stock certificate is issued, except as described in the Plan.

	 	 	 
	
Adjustments

	 	
In the event of a stock split, a stock dividend or a similar change in the Company stock, the number of Shares covered by this Option (rounded down to the nearest whole number) and the Exercise Price per Share may be adjusted pursuant to the Plan.  Your Option shall be subject to the terms of the agreement of merger, liquidation or reorganization in the event the Company is subject to such corporate activity.

	 	 	 
	
Legends

	 	
All certificates representing the Shares issued upon exercise of this Option shall, if applicable, have endorsed thereon the following legends:

	 	 	 
	  	 	
“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND OPTIONS TO PURCHASE SUCH SHARES SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR HIS OR HER PREDECESSOR IN INTEREST. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY BY THE HOLDER OF RECORD OF THE SHARES REPRESENTED BY THIS CERTIFICATE.”

	 	 	 
	  	 	
“THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.”

  

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Applicable Law

	 	
This Agreement will be interpreted and enforced under the laws of the State of Delaware.

	 	 	 
	
Voluntary Participant

	 	
Optionee acknowledges that Optionee is voluntarily participating in the Plan.

	 	 	 
	
No Rights to Future Awards

	 	
Optionee’s rights, if any, in respect of or in connection with this Option or any other Award are derived solely from the discretionary decision of the Company to permit Optionee to participate in the Plan and to benefit from a discretionary Award.  By accepting this Option, Optionee expressly acknowledges that there is no obligation on the part of the Company to continue the Plan and/or grant any additional Awards to Optionee or benefits in lieu of Options or any other Awards even if Options have been granted repeatedly in the past.  All decisions with respect to future Option grants, if any, will be at the sole discretion of the Committee.

	 	 	 
	
Future Value

	 	
The future value of the underlying Shares is unknown and cannot be predicted with certainty.  If the underlying Shares do not increase in value after the Date of Option Grant, the Option will have little or no value.  If Optionee exercises the Option and obtains Shares, the value of the Shares acquired upon exercise may increase or decrease in value, even below the Exercise Price.

	 	 	 
	
No Advice Regarding Grant

	 	
The Company has not provided any tax, legal or financial advice, nor has the Company made any recommendations regarding Optionee’s participation in the Plan, or Optionee’s acquisition or sale of the underlying Shares.  Optionee is hereby advised to consult with Optionee’s own personal tax, legal and financial advisors regarding Optionee’s participation in the Plan before taking any action related to the Plan.

 

By signing the cover sheet of this Agreement, you agree to all of the terms and conditions described above, and in the Plan and Plan prospectus.

 

  

7

  

NTN BUZZTIME, INC.

 

NOTICE OF EXERCISE OF NONSTATUTORY STOCK OPTION BY OPTIONEE

 

NTN Buzztime, Inc.

5966 La Place Court

Carlsbad, California 92008

 

Attention:  Secretary

 

	
Re:

	
Exercise of Nonstatutory Stock Option to Purchase Shares of Company Stock

 

	  	  

	 
	  	
[PRINT NAME OF OPTIONEE]

	 

 

Pursuant to the Nonstatutory Stock Option Agreement dated                                                    ,               between NTN Buzztime, Inc., a Delaware corporation, (the “Company”) and me, made pursuant to the 2010 Performance Incentive Plan (the “Plan”), I hereby request to purchase                   Shares (whole number only and must be not less than 100 Shares or the remaining number of vested Shares under this Option) of common stock of the Company (the “Shares”), at the exercise price of $                     per Share.  I am hereby making full payment of the aggregate exercise price by one or more of the following forms of payment in accordance with the whole number percentages that I have provided below.  I further understand and agree that I will timely satisfy any and all applicable tax withholding obligations as a condition of this Option exercise.

 

	
Percentage

of Payment

	 	
Form of Payment As Provided In the Nonstatutory Stock Option Agreement

	 	 	 
	
%

	 	
Cash/My Personal Check/Cashier’s Check/Money Order (payable to “NTN Buzztime, Inc.”)

	  	 	  
	
% 

	 	
Cashless Exercise as provided in the Nonstatutory Stock Option Agreement

	  	 	  
	

% 

100%	 	
Surrender of Vested Shares (Valued At Their Fair Market Value) Owned 100% By Me For More Than Six (6) Months

 

	
Check one:

	
 ̈

	
The Shares certificate is to be issued and registered in my name only.

	 	 	 
	  	
 ̈

	
The Shares certificate is to be issued and registered in my name and my spouse’s name.

	  	  	  

	  	  	
[PRINT SPOUSE’S NAME, IF CHECKING SECOND BOX]

	 	 	 
	  	  	
Check one (if checked second box above):

	  	  	
 ̈ Community Property   or    ̈ Joint Tenants With Right of Survivorship

I acknowledge that I have received, understand and continue to be bound by all of the terms and conditions set forth in the Plan, Plan prospectus and in the Nonstatutory Stock Option Agreement.

 

Dated:                                                

 

	 	 	 
	
(Optionee’s Signature)

	  	
(Spouse’s Signature)**

	  	  	
**Spouse must sign this Notice of Exercise if listed above.

	 	 	 
	  	  	  
	 	 	 
	  	  	  
	
(Full Address)

	  	
(Full Address)

 

*THIS NOTICE OF EXERCISE MAY BE REVISED BY THE COMPANY AT ANY TIME WITHOUT NOTICE.

  

8ntnbuzz_10q-ex1004.htm

 

Exhibit 10.4

 

NTN Buzztime, Inc. Executive Incentive Plan for Eligible Employees of NTN Buzztime, Inc.

Fiscal Year 2010

	
Section

	
Description

 

	
1

	
Approval

	
This Plan has been approved by the Nominating and Corporate Governance Compensation Committee (“the Committee”). This Plan may be changed or modified at any time at the discretion of the Committee. The Committee also has discretion on the impact of merger and acquisition activity and/or investments made beyond the core business as it relates to the integration to this Plan.

 

	
2

	
Effective Dates

	
The Plan Period is January 1, 2010 – December 31, 2010.

 

	
3

	
Eligibility

	
To be an eligible participant in the Plan, Executives must be employed by Buzztime on or before October 1, 2010, on active, full-time, paid status and not be a participant in any other Buzztime incentive compensation program.  (All eligible employees are referred to in this Plan as “Participant(s)”). Only Participants may earn incentive compensation under this Plan.

 

Additionally, plan Participants must confirm they have read, understood, and agree to abide by the term and conditions in the Personal Incentive Memo and this incentive plan.

 

Any newly hired Executive who becomes eligible for the Plan during the year may be eligible to receive a prorated incentive amount.

 

This Plan supersedes any previous contractual agreements or prior incentive plans.

 

	
4

	
Plan Design

	
(1) Prerequisites to Earning Incentive Compensation

	  	  	
To earn incentive compensation under this Plan, subject to provisions of Section 6, the following criteria must be satisfied: (a) The Plan must be funded, based on the achievement of the Corporate Goal during the Plan Period which is to meet target EBITDA; and (b) the Participant must be employed by Buzztime on the Payout Date.

 

(2) Corporate Goal – Our 2010 Corporate Goal is the 2010 EBITDA target as approved by the Board of Directors.

 

EBITDA is defined as earnings before interest, tax, depreciation and amortization (“EBITDA”) as defined in Buzztime’s financial reports.

 

The payout pool is determined and funded based on meeting the Corporate Goal.

If the Company meets the Corporate Goal, there is a 100% payout pool generated.

If the Corporate Goal is exceeded the Committee, at its discretion may choose to payout a larger pool amount. If the Corporate Goal is met at 90%, there is a 40% payout pool generated on a sliding scale to 100%.

 

(3) Target Payout

 

Each Participant will have a Target Payout, assigned by his/her position and job level, and comprised of two components, cash and equity. The cash component is expressed as a percentage of their “annual base salary” excluding benefits as of December 31, 2010. The equity component is expressed as a “performance grant” subject to the approval, terms and conditions of the “2010 Performance Incentive Plan” by the company Shareholders and Board of Directors.  The performance grant will be in the form of restricted stock units where 100% vesting will occur on the achievement of the specified performance goals and level.  The number of restricted stock units will be determined based on the achievement level and using a value of $.6250 per restricted stock unit.  In the event the Corporate Goal is not met at least at 90% the restricted stock units will not be awarded and no cash will be awarded.

 

The Target Payout amount will be adjusted when warranted pursuant to Sections 5 and 6.

 

  

1

  

 

	
 

	  	
(4) Plan Terms

The Incentive Payout amount is based on the following terms:

 

% of  Corporate Goal Achievement  -  Overall percent achieved of the Corporate Goal.

 

Participant’s Target Payout Amount  -  Participant’s annual base salary x the Target Payout and a specific equity amount. Please refer to your personal incentive memo.

 

Individual Incentive Payout – The incentive payout amount an individual is awarded after the payout formula is completed subject to all sections of this Plan.

 

Executive – Executive is defined as the titles of Chief Executive Officer, Chief Financial Officer, Chief Operating Officer and EVP of Technology & Programming. These titles are considered Participants under this Plan.

 

Performance Grant – Subject to the terms and conditions of the 2010 Performance Incentive Plan, an equity grant type that vests upon certain performance criteria.

 

(5) Performance Determination

Buzztime’s actual performance against the Corporate Goal for the Plan Period will be determined and approved by the Committee as soon as practicable after the Plan Period ends, subject to the completion and approval by Buzztime of the relevant financial or other Buzztime reports upon which the Corporate Goal is measured.

 

(6) Payout Formula

Please refer to your personal incentive memo for formula payout examples.

 

	
5

 

	
Payout Details

	
Payout Date(s): Subject to Section 8, and provided all the of prerequisites to earning incentive compensation are met pursuant to Section 4, a cash payout will occur within 30 days after receipt of the independent auditor’s report on Buzztime’s annual financial statements for 2010, but no later than March 15, 2011.  Similarly the performance grant will be awarded within 30 days after receipt of the independent auditor’s report on Buzztime’s annual financial statements for 2010, but no later than March 15, 2011 subject to the 2010 Performance Incentive Plan provisions.

 

Prorated Payouts: The Individual Incentive Payout that otherwise would have been earned in the Plan Period will be prorated when the provisions of Section 6 apply.

 

Plan Administration and Interpretation: This Plan shall be administered and interpreted by the Committee at its sole discretion. The Committee must approve any exceptions to the term and conditions of this Plan.

 

 

  

2

  

 

	  	  	
401k deferrals: In accordance with the NTN Buzztime, Inc. 401k Plan, no 401k deductions will be withheld from incentive (“bonus”) wages.

 

Taxes: Incentive payments are in addition to the Participant’s base salary and are included as total cash compensation and, as such, recorded on the Participant’s W-2 (or applicable country statement) statement of wages. Individual Incentive Payouts are considered taxable income and are reported as Gross Income (not “after taxes”). Participants will have all appropriate payroll taxes and withholdings deducted from these incentive payments at the IRS supplemental tax rate.

	  	  	  
	
6

	
Prorated Participation

	
Late Entry into the Plan: An Executive who enters into an eligible position and, therefore, becomes a Participant after the beginning of the Plan Period (either through new hire, promotion or transfer) will be assigned a Target Payout and will be able to earn prorated incentive payment on that basis.

 

Effect of Termination: A Participant must be employed on the Payout Date(s) to earn an incentive payment. If a Participant voluntarily resigns from employment prior to the Payout Date), no incentive payment is earned. If Buzztime terminates a Participant’s employment prior to the Payout Date(s), no incentive payment is earned.

 

Effect of Disciplinary Action: Any Participant under disciplinary action (any level of performance counseling, warning and/or performance improvement plan) will be ineligible to participate in the Plan. If the employee upon reevaluation, however, is released from disciplinary action, he/she will at that same time resume eligibility under the Plan and may be eligible to receive a prorated incentive amount that excludes the period of time he/she was under disciplinary action.

 

Internal Promotions and Transfers: Employees who transfer within Buzztime and/or are promoted into new positions that are not eligible to participate in this Plan will be paid a prorated Individual Incentive Payout.  Participants who transfer within and/or promoted into new positions will be re-evaluated to ensure they are at the appropriate incentive level based on their position and job level. The incentive payment during the time in the Plan Period he or she was a Participant is subject to the prerequisites to earning incentive compensation.

 

Approved Time Off: The Individual Incentive Payout will not be prorated to account for time off due to personal time off not associated with a leave of absence.

 

Leave of Absence: The Individual Incentive Payout for Participants who are on an approved leave of absence from Buzztime will be prorated based on the length of the approved leave during the Plan Period. During the time an employee is on an approved leave of absence, he or she will not be considered a Participant.

 

	
7

	
At Will Employment

	
Employment with Buzztime is at-will. This means that just as a Participant is free to resign at any time, Buzztime reserves the right to discharge a Participant at any time, with or without cause or advance notice. In connection with the “at-will” employment relationship, Buzztime also reserves the right to exercise its managerial discretion in reassigning, transferring, promoting or demoting an employee, at any time. Participation in the Plan does not guarantee continued employment for any particular period of time or otherwise change Buzztime’s policy of employment at-will.

	  	  	  
	
8

	
Company Management Rights

	
Buzztime reserves the right to amend or terminate this Plan, at any time, at the Board’s discretion, with or without advance notice. Any amendments to the Plan will be in writing and approved by the Committee. If this Plan is amended or terminated prior to the end of the Plan Period, Participants will be paid, according to any amending or terminating documents.

 

This Plan will automatically terminate at the end of the Plan Period, except that the Payout provisions will continue in effect until satisfied. However, Buzztime, at its discretion, may elect to re-issue the Plan, in writing, with new Effective Dates.

 

 

  

3

  

Acknowledgement

Your signature below indicates that you have read, understood, and agreed to the entire NTN Buzztime, Inc. Executive Incentive Plan for Eligible Employees of NTN Buzztime, Inc. Fiscal Year 2010, which includes the preceding four (4) pages and the Personal Incentive Memo for your position. Different positions are eligible for different incentives and not all positions are eligible for the same level of incentive. Information contained in these documents is strictly confidential and shall under no circumstances be shared with other employees of NTN Buzztime or with anyone outside the Company without the express consent of the Chief Financial Officer or Vice President of Human Resources of the Company unless required to do so under Sarbanes Oxley Act or the Securities Exchange Commission.

________________________________________

Plan Participant Name (Please Print)

________________________________________

Plan Participant Signature

________________________________________

Date

4

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