Document:

AMENDMENT
#1 TO EMPLOYMENT AGREEMENT

 

THIS
AMENDMENT #1 TO EMPLOYMENT AGREEMENT (this
“Amendment”) is made and entered into this 17th day of September, 2019, by and between NTN
Buzztime, Inc., a Delaware corporation (the “Company”), and Allen Wolff, an individual (the “Executive”).

 

RECITALS

 

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

 

A.
The Executive commenced employment with the Company as of December 29, 2014. On or about March 19, 2018, the Company and Executive
entered into an Employment Agreement (the “Employment Agreement”), pursuant to which Executive holds the position
of the Company’s Chief Financial Officer.

 

B.
The Company desires that the Executive be appointed and transition to the position of interim Chief Executive Office (“Interim
CEO”) to carry out the duties and responsibilities described below, all on the terms and conditions set forth in this
Amendment, effective as of the date set forth in the first paragraph (the “Effective Date”).

 

C.
The Executive desires to continue employment and transition to the position of Interim CEO 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 Employment Agreement and all related documents referenced in the 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.	Retention
    and Duties.

 

	 	1.1	Retention;
    Authorization to Work in the United States. Subject to the terms and conditions expressly set forth in this Amendment,
    the Company does hereby agree to continue the employment of the Executive and the Executive does hereby accept and agree to
    this engagement and employment. Executive’s employment with the Company is “at-will” and either the Company
    or Executive may terminate his employment with the Company at any time for any or no reason, subject to the terms and conditions
    set forth in this Amendment. The period of time during which Executive remains employed by the Company is referred to as the
    “Period of Employment.”

 

    	1

     

    

 

	 	1.2	Duties.
    Commencing on the Effective Date, the Executive shall no longer serve the Company in the position of CFO and shall commence
    in the position of its Interim CEO with the powers, duties and obligations of management typically vested in the office of
    the CEO of a corporation, subject to the directives of the Company’s Board of Directors (the “Board”)
    and to the corporate policies of the Company as they are in effect and as amended from time to time throughout the Period
    of Employment (including, without limitation, the Company’s business conduct and ethics policies). Specifically, the
    Interim CEO will work closely with the Board and senior management to to launch and execute the overall strategic and operational
    direction for the Company. The Executive will establish Company policies and objectives in accordance with board directives
    to achieve sustainable and cumulative growth over time. Moreover, the CEO will establish responsibilities and procedures for
    attaining objectives and reviews of operations and financial statements to evaluate achievement of those objectives. During
    the Period of Employment, the Executive shall report to the Board.

 

	2.	Compensation.

 

	 	2.1	Stay
    Bonus. Executive shall be entitled to a bonus in the amount of Thirty Thousand Dollars ($30,000) (the “Stay
    Bonus”) if (i) Executive remains employed by the Company for a period of at least One Hundred and Eighty (180) consecutive
    days from and after the Effective Date of this Amendment or (ii) the Company experiences a Change in Control prior to the
    180th day after the Effective Date and the Executive has been continuously employed by Company from the Effective
    Date of this Agreement until the date of the Change in Control (either day shall be the “Stay Bonus Achievement Date”).
    Company shall pay the Executive the Stay Bonus as part of the first regularly scheduled pay period immediately following the
    Stay Bonus Achievement Date. For purposes of this section, Change in Control shall have the meaning set forth in the 2019
    Performance Incentive Plan.
	 	 	 
	 	2.2	Performance
    Incentive Plan. The Company shall establish the 2019 Interim CEO Performance Incentive Plan (a copy of which was delivered
    to the Executive on the date hereof) (the “Interim CEO PIP”), pursuant to which, and subject to the terms and
    conditions thereof, Executive shall be eligible to receive up to $60,000 worth of shares of the Company’s common stock
    if the performance goals described therein are achieved.

 

	3.	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.
	 	 
	4.	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.

 

    	2

     

    

 

	5.	Conflict;
    Agreement. Except as modified by this Amendment, the 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 Employment Agreement, this Amendment shall take precedence. Otherwise, all other terms and conditions of the Employment
    Agreement remain in full force and effect.
	 	 
	6.	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.
	 	 
	7.	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.

 

    	3

     

    

 

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/
    Steve Mitgang
	 	Name:	Steve
    Mitgang
	 	Title:	Chairman
    of the Nominating and Corporate Governance/Compensation Committee
	 	 
	 	“EXECUTIVE”
	 	 
	 	/s/
    Allen Wolff
	 	Allen Wolff

 

    	42019
Interim CEO Performance Incentive Plan 

 

	Section	 	Description
    
	1	Approval	 	This
    2019 Interim CEO Performance Incentive Plan (this “Plan”) has been approved by the Nominating and Corporate
    Governance/ Compensation Committee (the “Committee”) of the Board of Directors (the “Board”)
    of NTN Buzztime, Inc. (the “Company” or “Buzztime”). This Plan may be changed or modified
    at any time at the discretion of the Committee. 
	 	 	 	 
	2	Effective
    Date	 	September
    17, 2019 (the “Effective Date”)
	 	 	 	 
	3	Eligibility
    	 	The
    sole employee of the Company eligible to participate in this Plan is Allen Wolff, the Company’s interim chief executive
    officer (“Wolff” or “Participant”). Only Wolff may earn incentive compensation under
    this Plan. Additionally, Wolff must confirm he read, understood, and agrees to abide by the term and conditions in this Plan
    and in his Personal Incentive Memo. This Plan is in addition to any other contractual agreement or incentive plan to which
    Wolff is a party or in which he participates.
	 	 	 	 
	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) this Plan must be funded, based on the achievement of the Corporate Goals during the periods specified herein; and
        (b) Participant must be employed by Buzztime on the applicable Payout Date.

         

        (2)
        Performance Goals

         

        The
        Performance Goals are as follows:

        

 

	 	 	A.	The Company must retain certain key employees to be determined by the Committee through at least the six-month anniversary
        of the Effective Date (the “Key Employee Retention Goal”).

        

        

	 	 	 	 
	 	 	B.	The
    Company must have a target amount of unrestricted cash, as determined and approved by the Committee, as of the six-month anniversary
    of the Effective Date, (the “Cash Target Goal”).
	 	 	 	 
	 	 	C.	The
    Company must meet target sales with respect to its Buzztime Basic product offering, as determined and approved by the Committee,
    by March 31, 2020 (the “Buzztime Basic Goal”).

 

	 		 	(3) Target
    Payout Amount
	 	 	 	 

                                                           For
        the achievement each Performance Goal, the Company will grant to Wolff such number of shares of the Company’s common
        stock (the “Performance Shares”) equal to $20,000 divided by the closing price per share of the Company’s
        common stock on the date of grant. For the avoidance of doubt, if all three of the Performance Goals are achieved, Mr.
        Wolff will be granted an aggregate of $60,000 worth of Performance Shares, based on the closing price per share of the
        Company’s common stock on each grant date.

         

        The
        Performance Shares will be granted under, and be subject to, the Company’s 2019 Performance Incentive Plan (the
        “2019 PIP”) and any Performance Shares granted will be evidenced by and subject to a stock award agreement
        to be entered into between the Company and Mr. Wolff. Upon grant, the Performance Shares will be fully vested.

         

        The
        Performance Shares will be adjusted when warranted pursuant to Sections 5 and 6.

        

 

    	 	 	 

    	 

    

 

	 	 	 	(4)
        Performance Determination

         

        The
        Committee will determine, in its sole discretion, whether the Performance Goals are achieved.

         

        Notwithstanding
        anything to the contrary herein and to the extent not prohibited by law, in the event that a Change in Control (as defined
        in the 2019 PIP) is expected to occur, the Committee may, in its sole discretion, determine to grant all or a portion
        of the Performance Shares regardless of the extent to which the Performance Goals are achieved as of such time. If
        the         Committee exercises its discretion to so grant all or a portion of the Performance Shares, the number of
        Performance Shares         to be granted will be determined by dividing (A) a dollar amount to be determined by the Committee
        between $1.00 and $60,000.00         by (B) the closing price per share of the Company’s common stock on the date of
        grant. The Committee may determine         to grant such Performance Shares contingent on, and effective as of immediately
        before, the closing of the Change in Control         transaction.

	 	 	 	 
	5	Payout
    Details	 	Payout
        Date(s): Subject to Section 8 (Company Management Rights), and provided all the of prerequisites to earning incentive
        compensation are met pursuant to Section 4 (Plan Design), the Performance Shares for each of the three Performance Goals
        will be granted as soon as practicable after the Committee determines that the applicable Performance Goal is achieved
        but no later than (A) with respect to the Key Employee Retention Goal and the Cash Target Goal, the 10th business day
        after the six month anniversary of the Effective Date; and (B) with respect to the Buzztime Basic Goal, the 10th business
        day after March 31, 2020 (the date on which the Performance Shares are actually granted, the “Payout Date”).

         

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

         

        Notwithstanding
        the generality of the foregoing, the Committee also has sole discretion to determine the impact of any merger, acquisition
        or similar transaction or of any activities related thereto and/or of investments made beyond the core business of the
        Company as they relate to this Plan.

         

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

         

        Taxes:
Payments under this Plan are in addition to Wolff’s base salary and are included as total cash compensation and, as
such, recorded on his W-2 (or applicable country statement) statement of wages. Such payments are considered taxable income and
are reported as Gross Income (not “after taxes”). Wolff will have all appropriate payroll taxes and withholdings deducted
from these payments at the IRS supplemental tax rate. Deductions from a payout in the form of shares of common stock shall be
governed by the 2019 PIP (or any successor long-term incentive plan), and the applicable grant documentation, if any

	 	 	 	 
	6	Effect
    of Termination and Disciplinary Action	 	Effect
        of Termination of Employment: Wolff must be employed on the Payout Date(s) to earn the Performance Shares. If he voluntarily
        resigns from employment prior to a Payout Date or if Buzztime terminates his employment prior to a Payout Date, no Performance
        Shares are earned.

         

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

	 	 	 	 
	7	At
    Will Employment	 	Employment
    with Buzztime is at-will. This means that just as 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 this 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 Committee’s discretion, with or without advance
    notice. Any amendments to this Plan will be in writing and approved by the Committee. If this Plan is amended or terminated
    prior to March 31, 2020, Participant will be paid, according to any amending or terminating documents. This Plan will automatically
    terminate at March 31, 2020, except that the payout provisions will continue in effect until satisfied. 

 

    	-2-

     

    

 

Acknowledgement

 

Your
signature below indicates that you have read, understood, and agreed to the 2019 Interim CEO Performance Incentive Plan, which
includes the preceding 2 pages and the Personal Incentive Memo for your position. 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 Director of Human Resources of the Company unless required to do so under Sarbanes
Oxley Act or the Securities Exchange Commission.

 

	Date:	September
    17, 2019	 	/s/
    Allen Wolff
	 	 	 	Allen
    D. Wolff

 

    	-3-

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