Item 1.02. Termination of a Material Definitive Agreement.
As part of our on-going efforts to implement measures designed to reduce our
operating expenses and preserve capital as we continue to seek to mitigate the
substantial negative impact of the COVID-19 pandemic on our business, on June
25, 2020, we entered into a Lease Termination, Surrender and Buy-Out Agreement
(the "Lease Termination Agreement") with Burke Aston Partners, LLC (the
"Lessor") to terminate, effective June 30, 2020, the lease dated July 26, 2018
for our corporate headquarters. Absent the Lease Termination Agreement, the
lease would have expired in accordance with its terms in April 2026. When we
entered into the lease we had approximately 86 full-time employees. Since
January 1, 2020, we reduced our headcount from 74 to 18 employees, all of whom
are currently working remotely, and we do not currently need a corporate
headquarters of the size subject to that lease. After paying all the amounts we
potentially could be required to pay under the Lease Termination Agreement,
including both contingent payments described below, we will have reduced our
future cash obligations under the lease by approximately $3.4 million.
Pursuant to the Lease Termination Agreement, in exchange for allowing us to
terminate the lease early, we agreed to (i) allow the Lessor to keep our
security deposit of approximately $260,000, which includes $200,000 under a
letter of credit, (ii) pay the Lessor approximately $121,000 for past due rent,
and (iii) pay the Lessor $80,000 if we sell all or any material part of our
assets or all or any material part of our equity interests and $5,000 if the
Lessor needs to dispose of furniture that remained in the office space.
The foregoing summary of the material terms of the Lease Termination Agreement
does not purport to be complete and is qualified in its entirety by reference to
the Lease Termination Agreement, a copy of which is attached as an exhibit to
this report and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
10.1 Lease Termination, Surrender and Buy-Out Agreement dated June 25, 2020
between NTN Buzztime, Inc. and Burke Aston Partners, LLC.
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NTN BUZZTIME, INC. 
