Document:

Exhibit 10.1

 

EXECUTION
VERSION

 

AGREEMENT

 

This
AGREEMENT (the “Agreement”) is entered into as of February 4, 2019 (the “Closing Date”),
by and among One Horizon Group, Inc., a Delaware corporation (“OHGI”), Banana Whale Studios Pte Ltd, a Singapore
corporation (the “Company”), Sargon Petros, Mark Hogbin, Rita Liu and Jeremy Chung (the “Stockholders”),
upon the following premises:

 

Preliminary
Statement

 

Pursuant
to an Exchange Agreement dated May 18, 2018 and the closing agreement dated on or around May 2018 (both agreements being the “Exchange
Agreement”), OHGI was entitled to acquire from the Stockholders 280,500 shares of the common stock of the Company (the
“Company Shares”), representing 51% of the outstanding shares of the Company, in exchange for, in addition
to a nominal amount of cash, a number of shares of OHGI common stock (“Exchange Shares”) to be based upon the
net after-tax earnings of the Company for the 24-month period ended May 31, 2020 (“Measurement Period”).

 

At
the closing of the Exchange Agreement, the Stockholders demanded and OHGI delivered to the Stockholders a total of 7,383,000 shares
of OHGI Common Stock (the “Pledged Shares”) in anticipation of the number of Exchange Shares to be delivered
upon expiration of the Measurement Period. The Pledged Exchange Shares were to be subsequently deposited in escrow pursuant to
a Stock Pledge Agreement (the “Pledge”) with Mandelbaum Salsburg, P.C. as escrow agent (the “Escrow
Agent”).

 

In
connection with the agreement contemplated by the Exchange Agreement, OHGI granted the Company the right to use OHGI’s secure
messaging software.

 

The
Company has received a proposal to finance its operations from a third party (“TP”) which the Stockholders want it
to accept (the “Financing Proposal”) and which the Stockholders have determined is in their respective best
interests. To enable the Company to accept the Financing Proposal, the parties wish to terminate and unwind the Exchange Agreement
on the terms and conditions set out herein.

 

The
Company has requested that OHGI release the Company from all claims it may have against the Company, including obligations for
all monies borrowed, in consideration of the payment of the amounts provided herein.

 

The
Stockholders have requested that OHGI release each of them from his or her obligation to deliver the Company Shares to OHGI; and
further that OHGI indemnify them for any claims that may be made against them as a result of the breach of such representations
and warranties they may make to the TP, to the extent such breaches are the result of actions taken or failed to have been taken
by OHGI, and that OHGI secure its indemnity by granting the Stockholders a lien on the Pledged Shares.

 

OHGI
has requested that the Stockholders release OHGI from its obligation to deliver the Exchange Shares to the Stockholders, and that
the Company agree to modify its right to use OHGI’s secure messaging software.

 

     

     

    

 

Parties
agree that in consideration of the agreements contained herein, OHGI shall be paid two million ($2,000,000) United States dollars
of which one million five hundred thousand ($1,500,000) United States dollars are to be paid in cash (the “Cash Consideration”)
and five hundred thousand ($500,000) United States dollars are to be paid in accordance with the Company’s Promissory Note
(the “Note”) to be delivered concurrently herewith and that the Note be secured by a pledge of all of the shares
of the Company owned by the Stockholders after giving effect to the transactions contemplated hereby and the investment by TP
in the Company (the “Stockholder Shares”) pursuant to a Pledge and Escrow Agreement (the “Pledge and
Escrow Agreement”) in a form acceptable to OHGI.

 

Further,
the parties have agreed that the transaction contemplated hereby shall be deemed effective as of the opening of business on January
1, 2019 (“Effective Date”).

 

The
board of directors of OHGI (“Board of OHGI”) and the board of directors of the Company (the “Company
Board”) have determined that it is the best interests of their respective stockholders for the parties to consummate
the transactions contemplated hereby.

 

NOW
THEREFORE, on the stated premises and for and in consideration of the mutual covenants and agreements hereinafter set forth
and the mutual benefits to the parties to be derived here from, and intending to be legally bound hereby, it is hereby agreed
as follows:

 

ARTICLE
I THE TRANSACTION

 

Section
1.01       Deliveries. The closing of the transactions contemplated herein (the “Closing”) shall occur contemporaneously
with the execution and delivery of this Agreement. Simultaneously with the execution and delivery hereof:

 

(i)          A
release of its claim to the Company Shares;

 

(ii)         The
Stockholders and OHGI shall deliver joint written instructions to the Escrow Agent to the effect that the Pledged Shares are to
continue to be held by it pursuant to the Pledge to secure the obligation of OHGI to indemnify the Stockholders as provided in
Section 1.05;

 

(iii)        The
Company shall deliver by wire transfer to an account designated by OHGI the sum of one million five hundred thousand ($1,500,000)
United States dollars;

 

(iv)        The
Company shall deliver to OHGI the Note;

 

(v)         Each
of the Stockholders shall deliver to OHGI and the Escrow Agent, the Pledge and Escrow Agreement and the certificate representing
the Stockholder Shares owned by him or her; and

 

(vi)        The
Stockholders will cause the Company and the TP to execute and deliver to OHGI a consent to the pledge by the Stockholders of the
Stockholder Shares and the subsequent transfer of such shares by OHGI in the event of a default under the Note.

 

     

     

    

 

Section
1.02        Termination of the Exchange Agreement. The parties hereby agree
that upon the execution and delivery of this Agreement, and the delivery of the consideration set forth in Section 1.01 and
except as specifically set forth herein, the Exchange Agreement is hereby terminated in its entirety with effect from the
Effective Date. In particular without the need for any further action on the part of any of the parties, the obligation of
OHGI to deliver any or all of the Exchange Shares and the obligation of the Stockholders to deliver any or all of the Company
Shares, and the obligation of the Parties to incorporate a BVI corporation (“Newco”) and of OHGI and the
Stockholders to exchange their shares of common stock in the Company for common stock of Newco, shall cease upon the
Effective Date. The Stockholders acknowledge that they no longer have the right to receive any Exchange Shares, and OHGI
acknowledges that it no longer has the right to receive any Company Shares.

 

Secure
Messaging Software. From and after the Effective Date the Company shall have the right to incorporate OHGI’s secure
messaging software in gaming and entertainment products. The Company shall not have the right to sell OHGI’s secure
messaging software as a stand-alone product marketed and intended to function as an independent secure messaging
system.

 

Release
by OHGI. With the sole exception of the covenants and obligations arising under this Agreement, including the obligation
under the Note, and the obligation of the Stockholders to indemnify OHGI pursuant to the Exchange Agreement, OHGI on behalf
of itself and its agents, stockholders, directors, officers, successors and assigns (the “OHGI Releasors”) hereby
irrevocably, unconditionally, absolutely and forever releases and discharges the Company, the Stockholders and their
respective managers, successors and assigns (the “Company Releasees”) from any and all claims, liabilities,
debts, obligations, accounts, actions and causes of action, suits, debts, dues, sums of money, accounts, reckonings, bills,
covenants, contracts, controversies, agreements, obligations, promises, judgments and demands (collectively,
“Claims”) whatsoever, whether past, present, or future, known or unknown, suspected or unsuspected, contingent,
vested or absolute, matured or unmatured, discoverable or undiscoverable, whether or not concealed or hidden, at law or in
equity, that the OHGI Releasors had, now have, claim to have had, or hereafter may have, against any Company Releasee arising
out of or related to any matter, cause or thing which occurred or failed to occur prior to the date hereof. For the avoidance
of doubt, the above release does not release the Company Releasees from their covenants and obligations arising under this
Agreement, including the obligation under the Note, and the obligation of the Stockholders to indemnify OHGI pursuant to the
Exchange Agreement.

 

Section
1.04         Indemnification by OHGI

 

(i)          OHGI
hereby agrees to indemnify and hold each of the Stockholders harmless from any loss or liability, including but not limited to
reasonable attorneys’ fees, he or she may incur as a result of a breach by any of the Stockholders of a representation or
warranty made by them in favor of the TP in the subscription agreement (or such comparable agreement) executed by the parties
in connection with the investment to be made by the TP in the Company on or about the date hereof, but only if, and then solely
to the extent that, the damages resulting from such breach directly result from any actions, not known to the Stockholders as
of the date hereof, taken by OHGI in connection with the operations of the Company prior to the date hereof. The sole recourse
of the Stockholders in connection with any action to realize upon this indemnity shall be limited to the right to receive all
or a portion of the 7,383,000 Pledged Shares. Upon any final determination of a court of competent jurisdiction (subject to the
provisions herein), and following any applicable appeals process, that OHGI is responsible for any indemnification payment pursuant
to this Section 1.05, the parties shall cause the Escrow Agent to release to the Stockholders only a number of Pledged Shares
having a fair market value as of the date of release equal to the total amount of such payment required to be made by OHGI.

 

     

     

    

 

(ii)         OHGI
shall not be liable to any Stockholder for indemnification under Section 1.05(i) until the aggregate amount of all losses in respect
of which indemnification is sought under Section 1.05(i) exceeds $25,000, in which event OHGI shall be required to pay or be liable
for all such losses in excess of $25,000 and in no event shall the aggregate liability of OHGI to the Stockholders under Section
1.05(i) exceed the lesser of the value of the Pledged Shares as of the date a Stockholder first makes a claim for indemnification
or $750,000 (paid by delivery of a portion of the Pledged Shares).

 

(iii)        OHGI’s
obligation to indemnify the Stockholders as provided in Section 1.05(i) shall survive the consummation of the transaction contemplated
hereby and shall remain in full force and effect until the date that is ninety (90) days from the date hereof. Notwithstanding
the foregoing, any claims asserted in good faith with reasonable specificity (to the extent known at such time) and in writing
by notice by a Stockholder prior to the expiration of such ninety (90) days shall not thereafter be barred by the expiration of
such period until finally resolved. Upon the expiration of such ninety (90) days OHGI shall be permitted to demand that the Escrow
Agent release such portion of the Pledged Shares as are in excess of the number that then have a fair market value equal to the
estimated amount of damages then being sought by the Stockholders.

 

ARTICLE
II REPRESENTATIONS, COVENANTS, AND WARRANTIES
OF THE COMPANY AND THE STOCKHOLDERS

 

The
Company represents and warrants to OHGI as follows:

 

Section
2.01        Organization. The Company is duly incorporated, validly existing,
and in good standing under the laws of Singapore and has the corporate power and is duly authorized under all applicable
laws, regulations, ordinances and orders of public authorities, to carry on its business in all material respects as it is
now being conducted.

 

Section
2.02         Power and Authority. The Company has all requisite power and
authority to execute, deliver and perform its obligations under this Agreement, the Note and any other documents or items
executed in connection with the transactions contemplated herein (collectively, the “Transaction Documents”) and
to consummate the transactions contemplated hereby and thereby.

 

     

     

    

 

Section
2.03         Authorization of Agreement; Due Execution and Delivery; Binding
Agreement. The execution, delivery and performance of this Agreement and the other Transaction Documents by the Company
have been duly authorized by the Company Board and no further corporate action is required. This Agreement has been, and the
other Transaction Documents when executed will be, duly executed and delivered on behalf of the Company. This Agreement does,
and the other Transaction Documents will, each constitute a valid and binding obligation of the Company, enforceable in
accordance with its terms, except that such enforcement may be limited by bankruptcy, insolvency or other similar laws
affecting the enforcement of creditors rights generally, and to the qualification that the availability of equitable remedies
is subject to the discretion of the court before which any proceeding therefore may be brought.

 

Section
2.04         No Conflict. The execution, delivery and performance of this
Agreement or any of the other Transaction Documents by the Company (i) will not violate any provision of the Articles of
Incorporation and by-laws of the Company, each as amended as of the date hereof; (ii) will not, with or without notice, lapse
of time or both, result in the breach of any term or provision of, constitute a default under, or terminate, accelerate or
modify the terms of any indenture, mortgage, deed of trust, or other material agreement, or instrument to which the Company
is a party or to which any of its assets, properties or operations are subject; (iii) violate any provision of law, statute,
rule, regulation or executive order to which the Company is subject; or (iv) violate any judgment, order, writ or decree of
any court applicable to the Company.

 

ARTICLE
III REPRESENTATIONS, COVENANTS, AND WARRANTIES
OF THE STOCKHOLDERS

 

Each
of the Stockholders, severally and not jointly, represent and warrant to OHGI as follows:

 

Section
3.01         Power and Authority. Such Stockholder has all requisite
power and authority to execute, deliver and perform his obligations under this Agreement and the other Transaction Documents
to which such Stockholder is a party and to consummate the transactions contemplated hereby and thereby.

 

Section
3.02         Authorization of Agreement; Due Execution and Delivery; Binding
Agreement. This Agreement and the Pledge and Escrow Agreement to be executed in connection herewith, have been, and any
other Transaction Documents executed by the Stockholders shall, when executed, be, duly executed and delivered by such
Stockholder and constitutes a valid and binding obligation of such Stockholder, enforceable against him or her in accordance
with its terms, except that such enforcement may be limited by bankruptcy, insolvency or other similar laws affecting the
enforcement of creditors rights generally, and to the qualification that the availability of equitable remedies is subject to
the discretion of the court before which any proceeding therefore may be brought.

 

     

     

    

 

Section
3.03        No Conflict. Such Stockholder has not assigned, transferred or
subjected to a lien his right to receive any of the Exchange Shares or entered into an agreement to do any of the foregoing.
The execution, delivery and performance of this Agreement by such Stockholder (i) will not, with or without notice, lapse of
time or both, result in the breach of any term or provision of, constitute a default under, or terminate, accelerate or
modify the terms of any indenture, mortgage, deed of trust, or other material agreement, or instrument to which such
Stockholder is a party or to which any of his assets, properties or operations are subject; (ii) violate any provision of
law, statute, rule, regulation or executive order to which such Stockholder is subject; or (iv) violate any judgment, order,
writ or decree of any court applicable to such Stockholder.

 

Section
3.04         Share Ownership. The number of shares of common stock of the
Company to be outstanding on a fully diluted basis after giving effect to the investment in the Company by TP (the “TP
Transaction”) is 11,123,971 of which the Stockholders own 5,500,000 shares. The shares of common stock of the Company
being pledged by such Stockholder pursuant to the Pledge and Escrow Agreement (the “BW Pledged Shares”) represent
all of the shares of common stock of the Company owned by the Stockholder beneficially or of record after giving effect to
the TP Transaction. Such Stockholder owns his or her BW Pledged Shares of record and beneficially free and clear of any and
all Liens (as defined below). There are no limitations or restrictions on any Stockholder’s right to transfer BW
Pledged Shares to OHGI pursuant to the Pledge and Escrow Agreement.

 

Section
3.05         The Pledged Shares and Stockholder Shares.

 

(i)       As between such Stockholder and any other Person other than OHGI, such Stockholder holds of record and owns beneficially all the
Pledged Shares free and clear of any and all Liens (as defined below) other than as noted on Schedule 3.05. There are no limitations
or restrictions on any Stockholder’s right to transfer the Pledged Shares to OHGI pursuant to this Agreement and the Pledge
other than as noted on Section 3.05. For purposes herein, “Lien” means, with respect to any property or asset, any
lien, security interest, mortgage, pledge, charge, claim, lease, agreement, right of first refusal, option limitation on transfer
or use or assignment or licensing, restrictive easement, charge or any other restriction of any kind, and any conditional sale
or voting agreement or proxy, and including any restriction on the ownership, use, voting, transfer, possession, receipt of income
or other exercise of any attributes of ownership, in respect of such property or asset, and any agreement to give any of the foregoing.

 

(ii)       Such
stockholder is not a party to any option, warrant, purchase right, proxy, power of attorney, voting trust or other contract or
agreement with respect to the voting or dividend rights or the sale, acquisition, issuance, redemption, registration, transfer
or other disposition of any of the Pledged Shares or the Stockholder Shares (other than this Agreement or any other Transaction
Document). Further, any document purportedly executed by any Stockholder appearing to grant an option, warrant, purchase right,
proxy, power of attorney, voting trust or other contract or agreement with respect to the disposition of any of the Pledged Shares
or the Stockholder Shares was not duly executed by such Stockholder and is null and void and has no legal effect.

 

     

     

    

 

ARTICLE
IV REPRESENTATIONS, COVENANTS, AND WARRANTIES
OF OHGI

 

OHGI
represents and warrants to the Company as follows:

 

Section
4.01         Organization. OHGI is a corporation duly incorporated,
validly existing, and in good standing under the laws of Delaware and has the corporate power and is duly authorized under
all applicable laws, regulations, ordinances, and orders of public authorities to carry on its business in all material
respects as it is now being conducted.

 

Section
4.02        Power and Authority. OHGI has the legal power, capacity and
authority to execute and deliver this Agreement, to consummate the transactions contemplated by this Agreement, and to
perform its obligations under this Agreement. This Agreement constitutes a legal, valid and binding obligation of OHGI,
enforceable against OHGI in accordance with the terms hereof.

 

Section
4.03         Authorization of Agreement; Due Execution and Delivery; Binding
Agreement. The execution, delivery and performance of this Agreement by OHGI have been duly authorized by the Board of
OHGI and no further corporate action is required. This Agreement has been duly executed and delivered on behalf of OHGI. Each
of this Agreement, the Pledge Agreement and the Pledge and Escrow Agreement constitutes a valid and binding obligation of
OHGI, enforceable in accordance with its terms, except that such enforcement may be limited by bankruptcy, insolvency or
other similar laws affecting the enforcement of creditors rights generally, and to the qualification that the availability of
equitable remedies is subject to the discretion of the court before which any proceeding therefore may be brought.

 

Section
4.04         No Conflicts. The execution, delivery and performance of this
Agreement by OHGI (i) will not violate any provision of the Certificate of Incorporation and by-laws of OHGI, each as amended
as of the date hereof; (ii) will not, with or without notice, lapse of time or both, result in the breach of any term or
provision of, constitute a default under, or terminate, accelerate or modify the terms of any indenture, mortgage, deed of
trust, or other material agreement, or instrument to which OHGI is a party or to which any of its assets, properties or
operations are subject; (iii) violate any provision of law, statute, rule, regulation or executive order to which OHGI is
subject; or (iv) violate any judgment, order, writ or decree of any court applicable to OHGI.

 

Section
4.05         Title. OHGI is the beneficial owner of the Company Shares,
with the right and authority to sell and deliver such Company Shares, free and clear of all liens, claims, charges,
encumbrances, pledges, mortgages, security interests, options, rights to acquire, proxies, voting trusts or similar
agreements, restrictions on transfer or adverse claims of any nature whatsoever.

 

     

     

    

 

ARTICLE
V COVENANTS AND INDEMNIFICATION

 

Section
5.01         Cooperation. OHGI and the Company promptly shall provide
each other with such cooperation and information as either of them reasonably may request of the other in filing any tax
return or, in the case of OHGI, any report required of OHGI pursuant to the Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder or in connection with any audit, investigation or other proceeding initiated
by any governmental organization. Such cooperation and information shall include providing copies of relevant tax returns or
portions thereof, financial statements and business records, relating to the business of the Company, together with
accompanying schedules, related work papers and documents. Each of OHGI and the Company shall retain all financial records
and tax returns, schedules and work papers, records and other documents in its possession relating to the business, financial
statements and tax returns of the Company for any taxable period beginning before the date hereof until the expiration of the
statute of limitations of the taxable periods to which such documents relate, without regard to extensions. Prior to
transferring, destroying or discarding any financial records, tax returns, schedules and work papers, records and other
documents relating to the business of the Company in its possession, OHGI or the Company (as the case may be) shall provide
the other party with reasonable written notice and offer the other party the opportunity to take custody of such
materials.

 

Section
5.02         Clarification. For the avoidance of doubt, OHGI shall be
permitted to maintain online access to the Company’s accounting software for transactions appropriate to complete
OHGI’s financial audit for the year ended December 31, 2018. The Company upon request will provide copies of of such
financial, accounting and tax records of the Company, to include bank statements, reports and vouchers, necessary to enable
OHGI to timely complete its audit for the year ended December 31, 2018.

 

ARTICLE
VI MISCELLANEOUS

 

Section
6.01         Governing Law. This Agreement shall be governed by,
enforced, and construed under and in accordance with the laws of New York, without giving effect to principles of conflicts
of law thereunder. Venue for all matters shall be in New York, New York. Each of the parties irrevocably consents and agrees
that any legal or equitable action or proceedings arising under or in connection with this Agreement shall be brought
exclusively in the Southern District Court of the United States located in New York County. By execution and delivery of this
Agreement, each party irrevocably submits to and accepts, with respect to any such action or proceeding, generally and
unconditionally, the jurisdiction of the aforesaid court, and irrevocably waives any and all rights such party may now or
hereafter have to object to such jurisdiction.

 

     

     

    

 

Section
6.02        Notices. Any notice or other communications required or permitted
hereunder shall be in writing and shall be sufficiently given if personally delivered to it or sent by overnight courier or
registered mail or certified mail, postage prepaid, or electronic mail with a follow up copy by overnight courier, addressed
as follows:

 

If
to the Company or the Stockholders:

 

Banana
Whale Studios Pte Ltd 

22-15
International Plaza, 10 Anson Road, Singapore 

Attn:
Sargon Petros, Chief Executive Officer 

E-mail:
sp@bananawhale.com

 

If
to OHGI:

 

One
Horizon Group, Inc. 

34
South Molton Street 

London
W1K 5RG, United Kingdom 

Attn:
Martin Ward, Chief Financial Officer 

E-mail:
martin.ward@onehorizoninc.com

 

with
copies (which shall not constitute notice) by electronic mail to:

 

Mandelbaum
Salsburg P.C. 

1270
Avenue of the Americas, Suite 1808 

New
York, NY 10020 

Attention:
Vincent J. McGill, Esq. 

E-mail:
vmcgill@lawfirm.ms

 

or
such other addresses as shall be furnished in writing by any party in the manner for giving notices hereunder, and any such notice
or communication shall be deemed to have been given (i) upon receipt, if personally delivered or sent by electronic mail, (ii)
on the day after dispatch, if sent by overnight courier, and (iii) three (3) days after mailing, if sent by registered or certified
mail.

 

Section
6.03         Entire Agreement. This Agreement represents the entire
agreement between the parties relating to the subject matter thereof and supersedes all prior agreements, understandings and
negotiations, written or oral, with respect to such subject matter.

 

Section
6.04         Amendment or Waiver. Every right and remedy provided herein
shall be cumulative with every other right and remedy, whether conferred herein, at law, or in equity, and may be enforced
concurrently herewith, and no waiver by any party of the performance of any obligation by the other shall be construed as a
waiver of the same or any other default then, theretofore, or thereafter occurring or existing. This Agreement may by amended
only by a writing signed by all parties hereto.

 

     

     

    

 

Section
6.05         Effective Date. For all purposes related to financial
reporting and income taxes, the termination, renunciation and cancellation of OHGI’s claim to the beneficial ownership
of the Company Shares under the Exchange Agreement shall be deemed effective as of the opening of business on January 1,
2019. For the avoidance of doubt any income or loss realized by the Company for the period from January 1, 2019, to the date
hereof shall be attributed solely to the Stockholders.

 

Section
6.06         Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original and all of which taken together shall be but a single
instrument.

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Closing Date.

 

	 	One
    Horizon Group, Inc	 	 	Banana
    Whale Studios Pte Ltd
	 	 	 	 	 
	By:	 /s/
    Mark White	 	By:	/s/
    Sargon Petro
	 	 Mark White,
    CEO	 	 	 Sargon Petros,
    CEO
	 	 	 	 	 
	Stockholders:	 	 	 
	 	 	 	 	 
	 	 /s/
    Sargon Petros	 	 	 /s/
    Rita Liu
	 	Sargon Petros	 	 	 Rita Liu
	 	 	 	 	 
	 	 /s/
    Mark Hogbin	 	 	 /s/
    Jeremy Chung
	 	Mark Hogbin	 	 	 Jeremy Chung

 

     

     

    

 

Schedule
3.05

 

Liens

 

Reference
is made to the Shareholders’ Agreement dated the date hereof among the Company, the Stockholders and the TP.Exhibit 10.2

 

PROMISSORY
NOTE

 

	$500,000	February
    4, 2019

 

For
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Banana Whale Studios Pte Ltd (the
“Company”) agrees to pay to the order of One Horizon Group, Inc. (“OHGI”), on or before December 31, 2019
(the “Maturity Date”), the principal sum of five hundred thousand ($500,000) U. S. dollars together with interest
thereon as provided in this Promissory Note (the “Note”).

 

The
Company agrees to pay interest on the outstanding principal hereof at the rate of five percent (5.0%) per annum calculated on
the basis of a 365/366-day year and the actual number of days elapsed; provided, however that if any amount payable hereunder
remains outstanding after the Maturity Date, interest shall accrue on such amounts at the rate of fifteen percent (15%) per annum
until such amounts are paid in full. In no event shall OHGI, or any permitted successor or assign, be entitled to receive, collect
or retain any amount of interest paid hereon in excess of that permitted by applicable law. The Company shall have the right,
at any time and from time to time, upon three business days’ notice to OHGI, to prepay this Note in whole or in part together
with accrued interest on the amount prepaid, but without premium or penalty. All payments to OHGI shall be made in United States
dollars and shall be applied first to any expenses which have accrued hereunder, next to accrued and unpaid interest and thereafter
to the principal amount of this Note then outstanding.

 

The
following shareholders of the Company, Sargon Petros, Mark Hogbin, Rita Lui and Jeremy Chung (collectively the “Founding
Shareholders”) acknowledge that each of them will receive substantial benefits from the consummation of the transactions
of which the delivery of this Note is a part, and have agreed to guarantee the payment of all amounts due or which may become
due under this Note on a limited recourse basis in accordance with the terms of a Limited Recourse Guaranty being delivered by
each of them concurrently herewith. The liability of each of the Founding Shareholders will be limited to the shares of the outstanding
common stock of the Company now or hereafter held by him or her as set forth in a Pledge and Escrow Agreement among OHGI, the
Founding Shareholders and Mandelbaum Salsburg in the form being executed and delivered by such parties concurrently herewith.

 

Any
sum required to be withheld from the payment of interest due hereunder pursuant to United States law shall be promptly paid by
the Company for and on behalf of OHGI to the appropriate tax authority and the Company shall furnish OHGI with official tax receipts
or other appropriate evidence sufficient to enable OHGI to support a claim for income tax credit in respect of any sum so withheld.

 

If
any of the following events (“Events of Default”) shall occur and be continuing: (a) the failure of the Company
to pay when due any amount due under this Promissory Note on the Maturity Date or on any date thereafter on which payment is demanded
by OHGI; (b) the filing of any petition by or against the Company, or the commencement of any proceedings for the relief or readjustment
of any indebtedness of the Company under any law relating to bankruptcy, insolvency or reorganization or relief of debtors and
the continuance of such event for 60 consecutive days unless dismissed, bonded to the satisfaction of the court of competent jurisdiction
or discharged; (c) the appointment of a receiver or conservator of any property of the Company; or (d) the sale by Company
of all or any substantial portion of its assets, then upon the occurrence of any such event, or at any time during the continuance
of any Event of Default, OHGI may declare all amounts payable hereunder to be immediately due and payable, whereupon the outstanding
principal amount hereof, all interest accrued thereon and any expenses payable by the Company hereunder shall become and be immediately
due and payable, all without presentment, protest, demand or notice of any kind, all of which are expressly waived by the Company;
provided, however, that in the event of an entry of an order for relief with respect to the Company or any endorser or guarantor
of this Note under applicable bankruptcy laws, this Note, and all such amounts shall automatically become and be due and payable,
all without presentment, protest, demand or notice of any kind, all of which are expressly waived by the Company.

 

     

     

    

 

The
Company agrees to pay on demand all reasonable costs and expenses in connection with the enforcement (whether through legal proceedings,
negotiations or otherwise) of this Note and any other document to be delivered hereunder (such costs and expenses shall include
without limitation, the reasonable fees and expenses of legal counsel.) The obligations of the Company under this Paragraph shall
survive the payment in full of this Note.

 

The
Company hereby waives presentment for payment, demand, notice of dishonor and protest of this Note. None of the terms or provisions
of this Note may be waived, altered, modified or amended except as OHGI may consent thereto in writing.

 

The
parties agree that all questions concerning the construction, validity, enforcement and interpretation of this Note, to the greatest
extent permitted by applicable law, shall be governed by and construed and enforced in accordance with the internal laws of the
State of New York, without regard to any principles of conflicts of law thereof that would defer to the substantive laws of any
other jurisdiction. Without limiting the right of OHGI to bring any action or proceeding against the Company or against property
of the Company arising out of or relating to this Note (an “Action”) in the courts of other jurisdictions, each party
agrees that all legal proceedings concerning the interpretation and enforcement of this Note shall be commenced in the state and
federal courts sitting in the City of New York, Borough of Manhattan (the “New York Courts”). Each party hereto
hereby irrevocably submits to the jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection
herewith or with any transaction contemplated hereby, and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of such New York Courts, or such New York Courts
are improper or inconvenient venue for such proceeding. The preceding consents to New York governing law and jurisdiction and
venue in New York State's Supreme Court have been made by the parties in reliance (at least in part) on Sections 5-1401 and 5-1402
of the General Obligations Law of the State of New York, as amended (as and to the extent applicable), and other applicable law.
Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action
or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to
such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process
in any other manner permitted by applicable law. In any action, suit or proceeding in any jurisdiction brought by any party against
any other party, each party, knowingly and intentionally and to the fullest extent permitted by applicable law, hereby absolutely,
unconditionally, irrevocably and expressly waives forever trial by jury.

 

     

     

    

 

Any
notice or other communication required or permitted to be given hereunder shall be in writing and shall be sent by certified mail,
return receipt requested, by Express Mail, or by a recognized overnight delivery courier service: (i) to OHGI at 34 South Molton
Street, London, W1K 5RG, United Kingdom, Attn: CFO with a copy to Mandelbaum Salsburg, 1270 Avenue of the Americas, Suite 1808,
New York, New York 10020, Attention: Vincent McGill; (ii) to the Company at 22-15 International Plaza, 10 Anson Road, Singapore;
and (iii) in either case, at such other address as the party shall have furnished in writing in accordance with the foregoing.
Any notice or other communication given by the means permitted hereunder shall be deemed given and effective at the time of deposit
thereof in the mails or with a recognized overnight courier.

 

	Banana
    Whale Studios Pte Ltd.	 	One Horizon
    Group, Inc.	 
	 	 	 	 	 
	By: 	/s/ Sargon Petros	 	By:	/s/
    Martin Ward	 
	 	Sargon Petros	 	 	Martin Ward	 
	 	 	 	 	 
	 	/s/ Sargon Petero	 	 	/s/ Mark Hogbin	 
	 	Sargon Petros	 	 	Mark Hogbin	 
	 	 	 	 	 
	 	/s/ Rita Liu	 	 	/s/Jeremy Chung	 
	 	Rita Liu	 	 	Jeremy Chung

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