Exhibit 10.2 


 


EMPLOYMENT
AGREEMENT


 


This
EMPLOYMENT AGREEMENT (this “Agreement”), dated as of September 4, 2017 (the “Commencement Date”), between
One Horizon Group, Inc., a Delaware corporation having an office at 34 South Molton Street, London W1K 5RG, UK (the “Company”),
and Edwin Lun, having an address as set forth on the signature page (the “Executive”).


 


W
I T N E S S E T H:


 


WHEREAS,
the Executive has experience in the Chinese Internet Market and the Company desires to employ Executive as its Chief Operating
Officer, and Executive desires to be so employed by the Company, upon and subject to the terms and conditions of this Agreement.


 


NOW
THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties to this Agreement hereby agree
as follows:


 


1.
       Employment. The Company hereby employs Executive as its Chief Operating Officer,
commencing as of the Commencement Date, and Executive hereby accepts such employment with the Company, upon and subject to the
terms and conditions set forth in this Agreement. Executive shall not be required to spend any particular number of days at the
Company’s headquarters and may be based in a location remote from the Company’s headquarters, provided that Executive
can effectively carry out his duties from such location. Executive recognizes that international travel will be necessary in connection
with the proper discharge of his duties hereunder.


 


2.
       Term. The term of this Agreement and Executive’s employment hereunder shall
commence on the Commencement Date and continue through July 31, 2022 (the “Expiration Date,” and such period, the
“initial period”), subject to earlier termination as hereinafter provided. Subject to the provisions of Section
12 of this Agreement, this Agreement and the employment of Executive hereunder shall be automatically renewed for successive
renewal periods of one (1) year each (each, a “renewal period”), upon and subject to the terms and conditions hereof,
commencing on the Expiration Date and on each anniversary of the Expiration Date thereafter, unless either party hereto gives
the other notice of such party’s intent to terminate this Agreement and Executive’s employment hereunder at least
sixty (60) days prior to the end of the initial period or any renewal period (the actual term of employment of Executive hereunder,
whether ending on, prior to or after the Expiration Date, may be hereinafter referred to as the “Employment Period”).


 


3.
       Duties. During the Employment Period, Executive shall serve as the Chief Operating
Officer of the Company. Executive shall report directly to the Chief Executive Officer of the Company and render such services
and perform such duties for the benefit of the Company and its affiliates as may be consistent with Executive’s position
or related thereto as the Chief Executive Officer of the Company shall from time to time direct or request. Executive shall devote
Executive’s full business time, energy and skill to Executive’s employment hereunder and agrees to serve the Company
faithfully, diligently and to the best of Executive’s ability.


 






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4.
         Compensation.


 


 In
consideration of the services to be rendered by Executive hereunder, Executive shall receive from the Company the following:


 


(a)
       Signing Bonus. Upon execution and delivery of this Agreement by Executive, in
recognition of the Executive’s commitment to render services to the Company for a period of five years, the Company shall
issue to Executive one million four hundred thousand (1,400,000) shares of its common stock.


 


(b)
       Salary. During the period from the Commencement Date until the earlier of (i)
the date on which the Company consummates the acquisition of a business or division thereof with a valuation in excess of one
million dollars ($1,000,000) and (ii) December 31, 2017, Executive’s salary shall be accrued but not paid currently. All
accrued but unpaid salary shall be paid in equal monthly instalments from March 1 through July 1, 2018, or, if earlier, upon termination
of this Agreement by the Company for any reason or without cause. The date on which the earlier of the events described in clauses
(i) and (ii) shall first occur is referred to herein as the “Salary Commencement Date.” Commencing the date after
the Salary Commencement Dater the Company shall pay Executive a base salary at the rate of Two Hundred Fifty Thousand Dollars
($250,000) per year, payable in substantially equal bi-weekly or other installments in accordance with the Company’s standard
payroll practices from time to time in effect. The first and last installments of such salary shall be appropriately prorated
if and to the extent that Executive shall not have been employed by the Company hereunder for the full period covered by such
installment. Executive’s performance shall be reviewed annually by the Company’s Board of Directors, in connection
with which goals and possible increases in Executive’s salary for the future will be discussed, it being understood that
any such increases shall be within the discretion of the Company’s Board of Directors.


 


(c)
       Bonus. For purposes of this Agreement an Employment Year shall be the twelve
month period commencing as of August 1 and terminating as of the immediately succeeding July 31. At least two months prior to
the commencement of each Employment Year, commencing with the year beginning August 1, 2018, the Board of Directors and the Executive
shall agree upon an Incentive Compensation Plan for the year pursuant to which, upon the attainment of agreed upon objectives,
the Executive shall be awarded five year options to purchase common stock of the Company at such price and on such conditions
as shall be agreed upon in the Compensation Plan. Any options issuable hereunder in respect of a given Employment Year shall be
issued the Company within forty-five (45) days after the determination by that the Executive has attained the objectives set forth
in the relevant Compensation Plan.


 


(d)
       Employee Benefit Plans; Annual Physical Examination; Life Insurance.


 


 (i)       Employee
Benefit Plans. Executive shall be eligible to participate, in accordance with the respective terms thereof, in any employee
health, hospitalization or medical insurance plan, life insurance or disability insurance plan or any 401(k), pension or other
similar plans, that may be established and maintained by the Company for the general benefit of its senior executives, subject
to the respective terms and conditions of any such plans. The foregoing shall not, however, be construed to require the Company
to establish or maintain any such plan(s), or to prevent the Company from modifying or terminating any such plan(s) once established.


 






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(ii)       Annual
Physical Examination. If and to the extent not fully covered by any then applicable health, hospitalization or medical insurance
plan of the Company in which Executive may participate, the Company shall reimburse Executive for any so unreimbursed reasonable
cost of an annual routine physical examination.


 


(e)
       Vacation. Executive shall be entitled to take up to an aggregate of four (4)
weeks (i.e., twenty (20) business days) of vacation each Employment Year commencing with the Year beginning August 1, 2017
(or a pro rata number of vacation days in respect of any partial calendar year during the term hereof) as business conditions
permit, which shall be scheduled so as to minimize interference with the business of the Company, it being understood that unused
vacation may not accumulate from year to year, and any vacation time not used by the end of any year shall not require any additional
payment to Executive.


 


(f)
       Expenses. The Company shall reimburse Executive for Executive’s reasonable
business expenses incurred for or on behalf of the Company in furtherance of the performance by Executive of his duties hereunder,
subject to and in accordance with any then applicable expense reimbursement policy of the Company, and with any such reimbursement
to be subject to timely receipt by the Company from Executive of such receipts, vouchers and other verification as the Company
shall reasonably require to evidence such expenses. Such expenses shall include travel and lodging from the Executive’s
place of residence to any office of the Company or any other travel undertaken on behalf of the Company.


 


5.
        Deductions and Withholdings. It is understood that any and all payments and compensation
required to be made to or for the benefit of Executive pursuant to this Agreement shall be subject to such deductions and withholdings
as the Company determines are required or appropriate under applicable law.


 


6.
       Certain Representations. Executive hereby represents and warrants that Executive
is not a party to any agreement, contract or understanding, whether of employment or otherwise, and whether written or oral, express
or implied, with any current or former employer or other party, which could be deemed, in whole or in part, to be inconsistent
with or to conflict with, or could in any way restrict or prohibit Executive from entering into or performing Executive’s
obligations under, this Agreement.


 






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7.
       Confidential Information. In order to permit Executive to successfully perform
the duties associated with Executive’s employment hereunder, it is necessary to entrust Executive with certain valuable
proprietary information of the Company which is essential to the profitable operation of the Company and which gives the Company
a competitive advantage over other firms pursuing related business activities. Executive acknowledges that all non-public information,
including, but not limited to, financial information, business and strategic plans, product information, domestic and foreign
sources of supply, purchasing, manufacturing and sourcing facilities and relationships, know-how, trade secrets, market reports,
Company documents and other materials relating to the business, services and activities of the Company, customer investigations,
supplier and vendor lists, and other information regarding the Company’s licensors, suppliers, vendors, manufacturers, clients
and customers or regarding any agreements with any of the foregoing, and other confidential and proprietary information, whether
written, oral, electronically encoded or otherwise, to which Executive gains access by reason of Executive’s employment
by the Company or owned, used or possessed by the Company or its affiliates (collectively, “Confidential Information”),
is and shall remain the sole property of the Company (or such affiliates) and constitutes a valuable, special and unique asset
of the Company’s (or such affiliates’) business, access to and knowledge of which are essential to the performance
of Executive’s duties. Given the value of this Confidential Information, Executive agrees, as a condition of Executive’s
employment, that, except in the course of properly performing his duties on behalf of the Company during the period of Executive’s
employment with the Company, Executive shall not, at any time during or after the period of Executive’s employment with
the Company, without the prior written consent of the Company by its Chairman, Vice Chairman or Board of Directors, disclose any
such Confidential Information to any third party for any reason or purpose whatsoever, and Executive further agrees to immediately
return to the Company all Confidential Information (inclusive of any and all copies) upon the termination of Executive’s
employment or earlier upon the request of the Company. In addition, Executive shall not make use of any such Confidential Information
for Executive’s own purposes or for the benefit of any third party under any circumstances, during or after the period of
Executive’s employment with the Company; provided, however, that, during and after such term of employment,
these restrictions shall not apply to such Confidential Information which is then in the public domain (provided that Executive
was not responsible, directly or indirectly, for the fact that such secrets or information have entered the public domain without
the Company’s consent). Executive further agrees to disclose immediately to the Company any and all Confidential Information
conceived, discovered, introduced or developed in whole or in part by Executive at any time while employed by the Company, and
hereby assigns to the Company all of Executive’s right, title and interest in and to same, and Executive agrees to execute,
acknowledge and deliver any instruments or documents and to do all other things reasonably requested by the Company (both during
and after Executive’s employment with the Company) in order to completely vest in the Company all ownership rights in the
same.


 


8.
       Restrictive Covenant; Non-Competition; Non-Solicitation.


 


(a)
     Executive may receive offers of employment from or by others engaging in or wishing to engage in
activities reasonably similar to activities performed by Executive for the Company. Executive agrees order to protect the legitimate
business interests of the Company (including, without limitation, the Company’s goodwill and relationships with its customers,
suppliers, vendors and clients, and the Company’s Confidential Information), that Executive shall not, directly or indirectly,
without the prior written consent of the Company by its Chairman, Vice Chairman or Board of Directors:


 


(i)       while
employed by the Company and for a period one (1) year after expiration or termination of Executive’s employment for any
reason (whether voluntary or involuntary), own, manage, operate, join, control or become employed or engaged by, or render any
services of an advisory nature or otherwise to, or participate in the ownership, management, operation or control of, or otherwise
engage in, have any interest in or be connected in any manner with (except solely for the ownership by Executive of not more than
three percent (3%) of the voting capital stock of a publicly-held corporation) any person, business or activity which, directly
or indirectly, engages in the internet gaming business;


 






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 (ii)       while
employed by the Company and for a period of one (1) year after expiration or termination of Executive’s employment for any
reason (whether voluntary or involuntary), solicit, entice or induce any Customer (as defined below) of the Company to cease or
limit its business with the Company (except if and to the extent directed to do so by the Chairman, Vice Chairman or Board of
Directors of the Company), or to become a licensor, customer, supplier, vendor or client of any other person (including, without
limitation, Executive, individually) or entity engaged in any activity or business competitive with the Company, and Executive
shall not cause, assist or facilitate any person or entity in taking any such prohibited action; or


 


 (iii)       while
employed by the Company and for a period of one (1) year after expiration or termination of Executive’s employment for any
reason (whether voluntary or involuntary), solicit, attempt to solicit or entice away from the Company’s employment, or
employ, retain or engage any employee of the Company, or former Company employee who was employed by the Company at any time during
the then prior six months, or disrupt or interfere with, or attempt to disrupt or interfere with, the Company’s relationship
with any such person, and Executive shall not cause, assist or facilitate any person or entity in taking any such prohibited action.


 


(b)
       For purposes of this Agreement, a “Customer” of the Company shall mean any
person or entity, who or which is, or was at any time within the prior one year period, a licensor or purchaser, manufacturer
or supplier of goods or services (or prospective such licensor, purchaser, manufacturer or supplier), to or from the Company,
as the case may be.


 


9.
         Certain Remedies. Executive agrees that any breach by Executive of
Sections 7 or 8 of this Agreement will cause irreparable damage to the Company and that in the event of any such breach
or threatened breach, the Company shall have, in addition to any and all remedies of law, the right to an injunction, specific
performance or other equitable relief to prevent the violation of Executive’s obligations thereunder (without any obligation
to post any bond or other form of security in connection therewith); provided, however, that nothing herein contained
shall be construed as prohibiting the Company from pursuing any other remedy available for such breach or threatened breach. The
prevailing party in any litigation arising under such Sections 7, 8 or 9 of this Agreement shall be entitled to recover
such party’s reasonable attorneys’ fees and expenses with respect thereto in addition to, and not in limitation of,
any and all other available remedies.


 


10.
       Termination. The following provisions set forth the only grounds under which
this Agreement, and the employment of Executive hereunder, may be terminated prior to the Expiration Date:


 


(a)
       Termination by the Company Without Cause; Certain Non-Renewal by the Company.
Notwithstanding anything in this Agreement to the contrary, this Agreement and Executive’s employment hereunder may be terminated
by the Company at any time upon at least sixty (60) days’ prior written notice to Executive. In the event of any such termination
by the Company “without cause,” or in the event that this Agreement shall expire or terminate at the end of the initial
period or any renewal period by virtue of the Company having given notice to Executive of its intention to terminate this Agreement
at the end of such initial period or renewal period (a “Company Non-Renewal”), the Company shall thereafter owe to
the Executive, as severance and which amounts, except as specifically provided below, shall not be subject to mitigation by virtue
of the future employment of Executive a sum equal to one (1) year’s base salary (at the then current rate or if such termination
shall occur prior to the Salary Commencement Date, at the rate of $250,000 per annum). The aforesaid sum shall be paid to Executive
as provided in Section 10(h).


 






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(b)
       In the event Executive timely elects to be covered under COBRA (or the comparable medical
insurance program if the Executive’s Employment is subject to the laws of a jurisdiction other than the United States) or
otherwise requests continuation of coverage in respect of any medical or dental insurance group plan of the Company in which he
has theretofore participated, the Company shall pay or reimburse Executive for the cost of such coverage for a period of up to
the one (1) year period in respect of which severance shall be payable to Executive pursuant to the subsection (a) above.


 


(c)
       Executive acknowledges that his rights to any payments or benefits pursuant to and subject
to the provisions of this Section 10 are in place of, and not in addition to, any payments or benefits which might otherwise
be available under any current or future severance policy or similar policy or program followed by the Company or any of its affiliates,
and, accordingly, Executive hereby waives any and all such rights to receive any payments or benefits under any such other policies
and programs. Notwithstanding anything herein to the contrary, Executive hereby further acknowledges that the Company’s
obligations to make any of the payments or extend any benefits referred to in this Section 10 shall be subject to receipt
by the Company from Executive of a general release in favor of the Company, as prepared by the Company and reasonably satisfactory
to Executive.


 


(d)
       Termination by the Company For Cause. This Agreement and Executive’s employment
hereunder may be terminated immediately by the Company (by notice to Executive) for cause (as hereinafter defined). For purposes
of this Agreement, “cause” shall mean:


 


 (i)       the
breach by Executive, in any material respect, of this Agreement (including, without limitation, the refusal or other failure by
Executive to perform any of Executive’s duties hereunder other than a failure to perform resulting from death or physical
or mental disability) and failure by Executive to cure such breach within ten (10) days of written notice thereof from the Company;


 


 (ii)       the
commission by Executive of any act of dishonesty, fraud, intentional material misrepresentation or moral turpitude in connection
with his employment, including, but not limited to, misappropriation or embezzlement of any funds of the Company or any of its
affiliates;





 






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(iii)      the
commission by Executive of any (1) willful misconduct, or (2) intentional act having the effect of injuring the reputation, business
or business relationships of the Company or any of its affiliates, and which intentional act would not reasonably be deemed to
be in the best interests of the Company;


 


 (iv)      the
entering by the Executive of a plea of guilty or nolo contendere to, or the conviction of Executive for, a crime (other than a
routine traffic offense) which carries a potential penalty of imprisonment for more than ninety (90) days and/or a fine in excess
of Ten Thousand Dollars ($10,000);


 


 (v)       Executive’s
abuse of alcohol, prescription drugs or controlled substances which interferes with the performance of his duties to the Company;


 


 (vi)     Executive’s
deliberate disregard of any material rule or policy of the Company and failure to cure the same within ten (10) days of written
notice thereof from the Company; or


 


 (vii)    excessive
absenteeism of Executive other than for reasons of illness, after written notice from the Company with respect thereto.


 


(e)
       Termination Due to Death or Disability. Notwithstanding any other provision of
this Agreement, this Agreement shall terminate automatically upon the occurrence of Executive’s death. In addition, the
Company shall have the right, at any time after Executive shall have become disabled, to terminate this Agreement immediately.
For purposes of this Agreement, Executive shall be deemed to have become “disabled” when, by reason of physical or
mental illness, incapacity or disability, Executive shall fail to perform Executive’s duties hereunder for one continuous
period of ninety (90) days or more, or shorter periods aggregating one hundred twenty (120) days or more, within any period of
twelve (12) consecutive months; provided, however, that any days of disability separated by ten (10) or fewer days
shall be considered continuous.


 


(f)
        Voluntary Termination by Executive. This Agreement and Executive’s
employment hereunder may be voluntarily terminated by Executive at any time upon at least thirty (30) days’ prior written
notice to the Company.


 


(g)
       Termination by Executive for Good Reason. This Agreement and Executive’s
employment hereunder may be terminated at any time by Executive for “Good Reason.” For purposes of this Agreement,
Good Reason shall mean (i) a material diminution in Executive’s title, duties or responsibilities, or the assignment to
Executive of duties that, taken as a whole, are materially inconsistent with the scope of duties and responsibilities associated
with the position of President and Chief Executive Officer, or (ii) the breach by the Company, in any material respect, of this
Agreement, and failure by the Company to cure the same within ten (10) days of written notice thereof from Executive. In the event
of a termination of this Agreement by Executive for Good Reason, Executive shall be paid as severance the same amounts and benefits
as those to which he would have been entitled pursuant to the provisions of Section 10 in the case of a termination of
this Agreement by the Company without cause, all subject to the terms and conditions of such Section 10.


 






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(h)
       Obligations of Company Upon Termination; Executive’s Remedies; Payment of All
Amounts Due. Upon termination of this Agreement for any reason other than voluntarily by the Executive in the absence of a
breach by the Company or Executive’s death, the Company within two days of such termination shall pay to Executive all amounts
due hereunder up to the date of termination and any severance provided for herein. For the avoidance of doubt, the ostensible
resignation of the Executive pursuant to a letter of resignation executed prior to the intended date of termination of his services
and held by the Company or any of its shareholders until such date shall be deemed a termination for which Executive is entitled
to receive the immediate payment of the amounts provided for in this Section.


 


11.
       Counsel. Executive acknowledges that Executive has been advised to consult with
legal counsel prior to signing this Agreement.


 


12.
       Arbitration. Except as otherwise provided in Section 9 above, any controversy,
claim or dispute arising out of or relating to this Agreement, or any breach or alleged breach hereof, which cannot be settled
amicably by the parties within a period of thirty (30) days, shall be settled by final and binding arbitration, conducted in New
York City, New York, before, and in accordance with the Commercial Arbitration Rules of, the American Arbitration Association,
and judgment upon the award rendered may be entered in any court having jurisdiction thereof. The costs of such arbitration shall
be borne equally by the parties thereto and each party shall bear such party’s own attorneys’ fees in connection with
such arbitration; provided, however, that the prevailing party in any arbitration arising under this Section
16 shall be entitled to recover from the other party such prevailing party’s reasonable attorneys’ fees and expenses
incurred with respect thereto in addition to any other available remedies.


 


13.
       Miscellaneous.


 


(a)
       Notices. All notices, requests, demands and other communications hereunder shall
be in writing and shall be either personally delivered or sent by prepaid, receipted, express overnight courier service (such
as FedEx or UPS), addressed to the party to whom or which notice is to be given at the address set forth for such party at the
beginning of this Agreement, or to such other address as such party may have fixed by notice given in accordance with this paragraph
or to such other address as the applicable party may specify by notice given in accordance with this paragraph. Any notice given
hereunder as aforesaid shall be deemed given and effective upon receipt, or if delivery is refused, upon attempted delivery in
accordance with the foregoing.


 


(b)
       Assignability and Binding Effect. This Agreement is personal in nature and neither
of the parties hereto shall, without the prior written consent of the other (and in the case of any such consent of the Company,
signed on its behalf by its Chairman or Vice Chairman), assign or transfer this Agreement or any rights or obligations hereunder;
provided, however, that the Company shall have the right to assign and/or delegate any or all of its rights and
obligations hereunder to: (i) any person or entity who or which shall acquire (whether by sale of assets, merger or otherwise)
all or substantially all of its assets (excluding, for purposes of any such determination, cash, cash equivalents and any real
property or interests therein); or (ii) any affiliate of the Company. Any assignment or delegation by either party in violation
of this Agreement shall be null and void ab initio. Subject to the foregoing two sentences, this Agreement and all of the provisions
hereof shall be binding upon, and inure to the benefit of, the parties hereto, and their respective heirs, executors, administrators,
legal representatives, successors and permitted assigns.


 






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(c)
       Severability. It is the desire and intent of the parties hereto and the provisions
of this Agreement shall be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction
in which enforcement may be sought. Accordingly, if any one or more of the provisions of this Agreement shall be adjudicated to
be invalid, illegal or unenforceable in any respect, such provision shall be deemed amended to delete therefrom the portion thus
adjudicated to be invalid, illegal or unenforceable, such deletion to apply only with respect to the operation of such provision
in the particular jurisdiction in which such adjudication is made, and the remaining provisions contained herein shall not in
any way be affected thereby. Further, if any one or more of the provisions contained in this Agreement shall for any reason be
held to be excessively broad as to duration, geographical scope, activity or subject, such provision(s) shall be construed by
limiting and reducing the same, so as to be enforceable to the maximum extent permitted under the applicable law as it shall then
exist.


 


(d)
       Survival. Notwithstanding anything herein to the contrary, the provisions of
Sections 7, 8, 9, and 12 shall expressly survive the expiration or termination of this Agreement, regardless of the reason
therefor.


 


(e)
       Section Headings. The section headings contained in this Agreement are for convenience
of reference only and shall not be deemed to have any substantive effect.


 


(f)
        Governing Law, Jurisdiction and Venue. This Agreement has been entered
into in the State of New York, and shall be governed by, and construed and enforced in accordance with, the laws of the State
of New York applicable to contracts made and to be performed entirely therein (without giving effect to the conflicts of laws
rules thereof). In furtherance of the foregoing, each party hereby consents to and submits to the exclusive jurisdiction of the
federal and state courts located in the State of New York, City of New York, and any action or suit under this Agreement shall
be brought in the federal or state court with appropriate jurisdiction over the subject matter established or sitting in the State
of New York, City of New York, and each party hereby agrees not to raise in connection therewith, and hereby waives, any defenses
based upon the venue, the inconvenience of the forum, the lack of personal jurisdiction, the sufficiency of service of process
or the like in any such action or suit brought in such court in the State of New York, City of New York.


 


(g)
       Entire Agreement; Amendment; Waiver. This Agreement constitutes the entire agreement
and understanding between the parties with respect to the subject matter hereof, and cancels and supersedes any and all prior
agreements, understandings and representations, whether written or oral, express or implied, between the parties with respect
thereto. This Agreement may not be modified or amended, nor may any of its provisions be waived, except pursuant to a written
instrument signed by both of the parties hereto (and in the case of the Company, signed on its behalf by its Chairman or Vice
Chairman).





 






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(h)
       Counterparts; Effectiveness. This Agreement may be executed in any number of
counterparts, including, without limitation, by counterpart delivered by facsimile, each of which shall constitute one and the
same instrument. In the event this Agreement is executed by either party by facsimile counterpart, such party shall promptly send
an original to the other party. Notwithstanding anything herein to the contrary, the effectiveness of this Agreement and Executive’s
employment pursuant to the terms and conditions hereof is contingent upon the mutual execution and delivery of this Agreement
by Executive and the Company.


 


IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date first above written.





	 	 	 	 
	 	ONE HORIZON GROUP, INC.
	 	 
	 	By: 	/s/
    MartinWard	 
	 	 	An Authorized Party	

	 	 	 
	 	/s/ Edwin Lun