Document:

Exhibit 4.2

 

NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND
THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN
SECURED BY SUCH SECURITIES.

 

AMENDED
AND RESTATED  

COMMON
STOCK PURCHASE WARRANT 

 

ONE
HORIZON GROUP INC.

 

This
Amended and Restated Common Stock Purchase Warrant (this “Warrant”), dated as of November 27, 2017, between One Horizon
Group, Inc., a Delaware corporation having an office at 34 South Molton Street, London W1K 5RG, UK (the “Company”),
and Patrick Schildknecht, having an address as set forth below (the “Holder”). 

 

The
Holder subscribed for and in September 2012 acquired a warrant (the “Warrant”) to purchase 400,000 Ordinary Shares
of One Horizon Group PLC (“PLC”), the predecessor of the Company. As a result of the reorganization of PLC and certain
reverse splits of the common stock of the Company, a question has arisen as to the number of shares of common stock of the Company
which the Holder has the right to acquire, the price at which such shares can be acquired and the date as of which the Holder’s
right to acquire such shares shall expire. To resolve any dispute which may exist between the parties, the Company has agreed
to amend and restate the Warrant so that the Holder has the right to acquire 155,000 shares of the common stock of the Company
at a purchase price of eighty cents (US$0.80) per share until the close of business on December 31, 2017 on the terms and conditions
set forth below, and Holder has agreed to accept this amended and restated warrant in satisfaction of any rights he might otherwise
have. Specifically:

 

For
value received, Patrick Schildknecht or assigns (the “Holder”) is entitled, upon the terms and subject to the
limitations on exercise and the conditions hereinafter set forth, at any time on or prior to the close of business on December
31, 2017 (the “Termination Date”) but not thereafter, to subscribe for and purchase from One Horizon Group
Inc., a Delaware corporation (the “Company”), up to one hundred fifty-five thousand (155,000) shares (as subject
to adjustment hereunder, the “Warrant Shares”) of the Company’s common stock (“Common Stock”).
The purchase price of one share of Common Stock under this Warrant shall be equal to eighty cents (US$0.80), the “Exercise
Price,” subject to adjustment as provided herein.

 

    

     

    

 

Section
1.          Definitions. In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings
indicated in this Section 1:

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Board
of Directors” means the board of directors of the Company.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 

 

“Liens”
means a lien, charge pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose
and effect as such Rule.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Transfer
Agent” means Island Stock Transfer.

 

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Section
2.         Exercise.

 

a)         Exercise
of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times
on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may designate
by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed
facsimile copy (or e-mail attachment) of the Notice of Exercise form annexed hereto. Within three (3) Trading Days following the
date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable
Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure
specified in Section 2(b) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be
required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be required.
Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the
Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full,
in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date
the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion
of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant
Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company
shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver
any objection to any Notice of Exercise within one (1) Business Day of receipt of such notice. The Holder and any assignee,
by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase
of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time
may be less than the amount stated on the face hereof. 

 

b)        Mechanics of Exercise.

 

i.          Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted
by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with
The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company
is then a participant in such system and there is an effective registration statement permitting the issuance of the Warrant Shares
to or resale of the Warrant Shares by Holder and otherwise by physical delivery of a certificate, registered in the Company’s
share register in the name of the holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant
to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is three (3) Trading Days after
the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery Date”). Upon
delivery of the Notice of Exercise the Holder shall be deemed for all corporate purposes to have become the holder of record of
the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant
Shares; provided payment of the aggregate Exercise Price (other than in the case of a Cashless Exercise) is received within three
Trading Days of delivery of the Notice of Exercise. The Company agrees to maintain a transfer agent that is a participant in the
FAST program so long as this warrant remains outstanding and exercisable.

 

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ii.         Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request
of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder
a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which
new Warrant shall in all other respects be identical with this Warrant.

 

iii.        No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the
Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole share.

 

iv.          Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer
tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid
by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed
by the Holder; provided, however, that in the event Warrant Shares are to be issued in a name other than the name
of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed
by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer
tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise
and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required
for same-day electronic delivery of the Warrant Shares.

 

v.       Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise
of this Warrant, pursuant to the terms hereof.

 

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Section
3.        Certain Adjustments.

 

a)     
Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or
otherwise makes a distribution of capital stock in respect of its Common Stock, (ii) subdivides outstanding shares of Common Stock
into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into
a smaller number of shares or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the
Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of
shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator
shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon
exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain
unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the
determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or re-classification.

 

b)     
Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company
grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata
to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will
be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could
have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant immediately
before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken,
the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase
Rights.

 

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c)     
Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in
one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company,
directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially
all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange
offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell,
tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of
the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in
one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby
such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common
Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making
or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”),
then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would
have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the
Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock
of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration
(the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number
of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard
to any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of the
Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise
Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any exercise of this Warrant following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental
Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the
obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section
3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without
unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange
for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance
to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent
entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any
limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the
exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock
pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock
and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation
of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence
of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the
date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity
had been named as the Company herein.

 

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d)    
Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share,
as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as
of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

e)     
Notice to Holder.

 

i.     
Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the
Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment
and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ii.     
Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever
form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or
purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall
be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a
party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby
the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered
by facsimile or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register
of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating
(x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants,
or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend,
distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation,
merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that
holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other
property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure
to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action
required to be specified in such notice. The Holder shall remain entitled to exercise this Warrant during the period commencing
on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set
forth herein.

 

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Section
4.        Transfer of Warrant.

 

a)     
Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d)
hereof, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole
or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written
assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and
funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such
payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable,
and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. The Warrant, if properly
assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant
issued.

 

b)     
New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office
of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved
in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or
Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated
the date hereof and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

c)     
Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose
(the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and
treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution
to the Holder, and for all other purposes, absent actual notice to the contrary.

 

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d)    
Transfer Restrictions. (i) If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant,
the transfer of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities
Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions
or current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer,
that the Holder or transferee of this Warrant, as the case may be, provides to the Company an opinion of counsel, the form and
substance of which opinion shall be reasonably satisfactory to the Company, to the effect that the transfer of this Warrant does
not require registration under the Securities Act.

 

(ii)
The Holder will not offer, sell, contract to sell, hypothecate, pledge or otherwise dispose of (or enter into any transaction
which is designed to, or might reasonably be expected to, result in the disposition (whether by actual disposition or effective
economic disposition due to cash settlement or otherwise) by the Holder of this Warrant, the Warrant Shares and any other securities
issuable upon exercise hereof. 

 

e)     
Representation by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant
and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a
view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable
state securities law, except pursuant to sales registered or exempted under the Securities Act.

 

Section
5.           Miscellaneous.

 

a)     
No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other
rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth
in Section 3.

 

b)     
Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case
of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock certificate.

 

c)     
Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next
succeeding Business Day.

 

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d)    
Authorized Shares.

 

The
Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights
under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers
who are charged with the duty of executing stock certificates to execute and issue the necessary Warrant Shares upon the exercise
of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that
such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements
of the Trading Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued
upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by
this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and non-assessable
and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect
of any transfer occurring contemporaneously with such issue).

 

Except
and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution,
issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all
such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment.
Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above
the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may
be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable Warrant Shares
upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions
or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform
its obligations under this Warrant.

 

Before
taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or
in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be
necessary from any public regulatory body or bodies having jurisdiction thereof.

 

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e)     
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement
and defense of this Warrant 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 exclusive jurisdiction of the
New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein (including with respect to the enforcement of any of the Transaction Documents), 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. Each party hereto hereby
irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Warrant. If any party shall commence an action or proceeding to enforce any provisions of this
Warrant, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys’
fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

 

f)      
Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered
and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities
laws.

 

g)     
Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder
shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies, notwithstanding
the fact that all rights hereunder terminate on the Termination Date. If the Company willfully and knowingly fails to comply with
any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts
as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including
those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing
any of its rights, powers or remedies hereunder.

 

h)     
Notices. Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without
limitation, any Notice of Exercise, shall be in writing and delivered personally, or by a nationally recognized overnight courier
service, addressed to the Company, at One Horizon Group Inc., 34 South Molton Street, London W1K 5RG, UK Attn: Martin Ward, with
a copy to: Eaton & Van Winkle LLP, Three Park Avenue, 16th floor, New York, NY 10016, Attn: Vincent J. McGill,
Esq., facsimile: (212) 779-9928, or such other address as the Company may specify for such purposes by notice to the Holder. Any
and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered
personally or sent by a nationally recognized overnight courier service addressed to Holder at Lattenstrasse 17, 8142 Uitikon,
Switzerland. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of
the date of delivery if delivered personally or on the Trading Day on which delivered to a recognized overnight courier or the
Trading Day immediately following the date of deposit with a recognized overnight courier service if such day is not a Trading
Day or upon actual receipt by the party to whom such notice is required to be given.

 

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i)       
Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant
to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability
of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted
by the Company or by creditors of the Company.

 

j)       
Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages,
will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not
be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees
to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

 

k)     
Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby
shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted
assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant
and shall be enforceable by the Holder or holder of Warrant Shares.

 

l)       
Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company
and the Holder.

 

m)   
Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective
and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions
or the remaining provisions of this Warrant.

 

n)     
Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be
deemed a part of this Warrant. 

 

(Signature
Page Follows)

 

    12

     

    

 

[Warrant
Issued December __, 2017] 

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first
above indicated.

 

	 	ONE HORIZON GROUP INC.	 
	 	 	 	 
	 	By:	 	 
	 	 	Name:
        Martin Ward	 
	 	 	Title:
        CFO	 

 

Confirmed

 

	By:	 	 
	 	Patrick Schildknecht	 

 

    13

     

    

 

NOTICE
OF EXERCISE 

 

To:           ONE
HORIZON GROUP INC 

 

(1)  
The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant
(only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer
taxes, if any.

 

(2)  
Payment shall take the form of (check applicable box):

 

[  ] in lawful money of the United States; or

 

[  ] [if permitted] the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in
subsection 2(b), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless
exercise procedure set forth in subsection 2(b).

 

(3)  
Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

_______________________________ 

 

 

The
Warrant Shares shall be delivered to the following DWAC Account Number: 

 

_______________________________ 

 

_______________________________

 

_______________________________

  

[SIGNATURE
OF HOLDER] 

 

Name
of Investing Entity: __________________________ 

Signature
of Authorized Signatory of Investing Entity: ____________________ 

Name
of Authorized Signatory: ____________________________ 

Title
of Authorized Signatory: _____________________________ 

Date:
_______________

 

    14

     

    

 

ASSIGNMENT
FORM 

 

(To
assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.) 

 

FOR
VALUE RECEIVED, _____ shares of Common Stock underlying the foregoing Warrant and all rights evidenced thereby are hereby assigned
to _____________. 

 

Dated: 

 

Holder’s
Signature: _______________

 

Holder’s Address:  _______________

  

NOTE:
The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration
or enlargement or any change whatsoever. Officers of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

 

    15Exhibit 10.1

 

 

[FORM OF] STERLING CONSOLIDATED CORP.

NON-QUALIFIED

STOCK OPTION AGREEMENT

 

 

THIS STOCK OPTION AGREEMENT (the
“Agreement”) entered into as of the 26st day of December 2017 by and between Sterling Consolidated Corp.
(the “Company”) and _______ (the “Optionee”).

 

WHEREAS, pursuant to the authority
of the Board of Directors (the “Board”), the Company has granted the Optionee the right to purchase common stock, $0.001
par value per share (“Common Stock”), of the Company.  

 

NOW THEREFORE, in consideration
of the mutual covenants and promises hereafter set forth and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto agree as follows:

 

1. Grant of Non-Qualified Options.
 The Company hereby irrevocably grants to the Optionee, as a matter of separate agreement and not in lieu of salary or other
compensation for services, the right and option to purchase all or any part of an aggregate of 3,100,000 shares of authorized but
unissued or treasury common stock of the Company (the “Options”) on the terms and conditions herein set forth.  The
Common Stock shall be unregistered under the Securities Act of 1933, as amended (the “Securities Act”), unless the
Company voluntarily files a registration statement covering such shares of Common Stock with the Securities and Exchange Commission.
 The Options are not intended to be Incentive Stock Options as defined by Section 422 of the Internal Revenue Code of 1986,
as amended (the “Code”).  This Agreement replaces any stock option agreement or offer letter previously provided
to the Optionee, if any, with respect to the Options. The Grant Date for the Non-Qualified Options is December 26, 2017

 

2. Price.  The exercise price
of the shares of Common Stock subject to the Options granted hereunder shall be $0.03 per share.  

 

3. Vesting.  

 

(a) The Options shall vest immediately
upon execution of this Agreement. In lieu of fractional vesting, the number of Options shall be rounded up each time until fractional
Options are eliminated.

 

(b) Subject to Sections 3(c) and 4 of this
Agreement, Options may be exercised by providing to the Company the Notice of Option Exercise in the form attached hereto as Exhibit
A after vesting, and remain exercisable until 5:30 p.m. New York time on the date that is the _____ (___) year anniversary
of the date of this Agreement (“Expiration Date”).

 

(c) However, notwithstanding any other
provision of this Agreement, at the option of the Board in its sole and absolute discretion, all Options shall be immediately forfeited
and be of no further effect in the event any of the following events occur:

 

(i)       The
Optionee purchases or sells securities of the Company without written authorization in accordance with the Company’s insider
trading policy then in effect, if any;

 

(ii)       The
Optionee (A) discloses, publishes or authorizes anyone else to use, disclose or publish, without the prior written consent of the
Company, any proprietary or confidential information of the Company, including, without limitation, any information relating to
existing or potential customers, business methods, financial information, trade or industry practices, sales and marketing strategies,
employee information, vendor lists, business strategies, intellectual property, trade secrets or any other proprietary or confidential
information or (B) directly or indirectly uses any such proprietary or confidential information for the individual benefit of the
Optionee or the benefit of a third party;

     

     

    

 

(iii)       Except
as prior approved by the Board in writing or listed on Schedule I to this Agreement, the Optionee directly or indirectly owns,
manages, controls or participates in the ownership, management or control of, or is employed or engaged by or otherwise affiliated
or associated as an officer, director, partner, consultant, independent contractor, agent, representative or otherwise, with any
other person or entity that competes with the business of the Company or any of its Affiliates (as defined hereinafter) in any
geographical area in which the Company or any of its Affiliates conducts its business or promotes its products or services; provided,
however, that the ownership of not more than one percent (1%) of the stock of a company whose equity interests are publicly
traded on a nationally recognized stock exchange or over-the-counter shall not be deemed a violation of this provision;

 

(iv) The Optionee disrupts
or damages, impairs or interferes with the business of the Company or its Affiliates by recruiting, soliciting or otherwise inducing
any of their respective employees to enter into employment or other relationship with any other business entity, or terminate or
materially diminish their relationship with the Company or its Affiliates, as applicable; or

 

        (v)
The Optionee solicits or directs business of any person or entity who is (A) a customer of the Company or its Affiliates at any
time or (B) solicited to be a “prospective customer” of the Company or its Affiliates, in any case either for such
Optionee or for any other person or entity; provided that the Optionee has actual knowledge of such prospective customer.
For purposes of this clause (v), “prospective customer” means a person or entity that contacted, or is contacted by,
the Company or its Affiliates regarding the provision of services to or on behalf of such person or entity; or

 

(vi) The Optionee engages
in an action of “Cause.” For purposes hereof, “Cause” shall mean, a determination by the Board of Directors
that the Optionee shall be dismissed from service as a result of (a) the Optionee’s dishonest statements or acts with
respect to the Company or any affiliate of the Company, or any of the Company’s current or prospective customers, suppliers
vendors or other third parties with which such entity does business; (b) the Optionee’s commission of  a felony
or  any misdemeanor involving moral turpitude, deceit, dishonesty or fraud; (c) the Optionee’s failure to perform
his assigned duties and responsibilities to the reasonable satisfaction of the Company which failure continues, in the reasonable
judgment of the Company, after written notice given to the grantee by the Company; (d) the Optionee’s gross negligence,
willful misconduct or insubordination with respect to the Company or any affiliate of the Company; or (e) the Optionee’s
material violation of any provision of any agreement(s) between the Optionee and the Company relating to noncompetition, nondisclosure
and/or assignment of inventions.

 

(d) For purposes of this Agreement, “Affiliate”
means with respect to a person or entity, any other person or entity controlled by, in control of or under common control with
such person or entity, and “controlled,” “controlled by,” and “under common control with” shall
mean direct or indirect possession of the power to direct or cause the direction of management or policies (whether through ownership
of voting securities, by contract or otherwise) of a person or entity.

 

4 .Termination of Relationship.

 

(a) If for any reason, except death or
disability as provided below, the Optionee ceases to perform the services for which the Options were granted, all unvested options
shall be automatically and irrefutably forfeited effective three months from the date the Board has deemed that the Optionee has
ceased to perform such services, except as otherwise provided herein.

 

     

     

    

 

(b) If the Optionee shall die while
performing services for the Company, such Optionee’s estate or any Transferee (as defined hereinafter) shall have the right
within twelve (12) months from the date of death to exercise the Optionee’s vested Options, subject to Section 3(c) hereof.
For the purpose of this Agreement, “Transferee” shall mean an individual to whom such Optionee’s vested Options
are transferred by will or by the laws of descent and distribution.

 

(c) If the Optionee shall become disabled
while performing services for the Company within the meaning of Section 22(e)(3) of the Code, the three-month period referred to
in Section 4(a) of this Agreement shall be extended to one year.

 

5. Method of Exercise.  The
Options shall be exercisable by a written notice which shall:

 

( a) state the election to exercise
the Options, the number of shares to be exercised, the natural person in whose name the stock certificate or certificates for such
shares of Common Stock is to be registered and such person’s address and social security number (or if more than one, the
names, addresses and social security numbers of such persons);

 

( b) contain such representations
and agreements as to the holder’s investment intent with respect to such shares of Common Stock as set forth in Section 11
hereof;

 

( c) be signed by the person or persons
entitled to exercise the Options and, if the Options are being exercised by any person or persons other than the Optionee, be accompanied
by proof, satisfactory to counsel for the Company, of the right of such person or persons to exercise the Options; and

 

( d) Payment of the purchase price
for the Option Shares may be made by one or more of the following methods to the Company: (i) in cash, by certified or bank
check or other instrument acceptable to the Board of Directors; (ii) through the delivery (or attestation to the ownership)
of shares of Stock that have been purchased by the Optionee on the open market or that are beneficially owned by the Optionee and
are not then subject to any restrictions under any Company plan and that otherwise satisfy any holding periods as may be required
by the Board of Directors; (iii) by the Optionee delivering to the Company a properly executed exercise notice together with
irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company to
pay the option purchase price, provided that in the event the Optionee chooses to pay the option purchase price as so provided,
the Optionee and the broker shall comply with such procedures and enter into such agreements of indemnity and other agreements
as the Board of Directors shall prescribe as a condition of such payment procedure; (iv) by a “net exercise” arrangement
pursuant to which the Company will reduce the number of shares of Stock issuable upon exercise by the largest whole number of shares
with a fair market value on the day of exercise that does not exceed the aggregate exercise price; or (v) a combination of
(i), (ii), (iii) and (iv) above. Payment instruments will be received subject to collection

 

(e) The transfer to the Optionee on the
records of the Company or of the transfer agent of the Option Shares will be contingent upon (i) the Company’s receipt
from the Optionee of the full purchase price for the Option Shares, as set forth above, (ii) the fulfillment of any other
requirements contained herein or in any other agreement or provision of laws, and (iii) the receipt by the Company of any
agreement, statement or other evidence that the Company may require to satisfy itself that the issuance of Stock to be purchased
pursuant to the exercise of Stock Options and any subsequent resale of the shares of Stock will be in compliance with applicable
laws and regulations. In the event the Optionee chooses to pay the purchase price by previously-owned shares of Stock through the
attestation method, the number of shares of Stock transferred to the Optionee upon the exercise of the Stock Option shall be net
of the Stock attested to.

 

     

     

    

 

(f) The shares of Stock purchased upon
exercise of this Stock Option shall be transferred to the Optionee on the records of the Company or of the transfer agent upon
compliance to the satisfaction of the Board of Directors with all requirements under applicable laws or regulations in connection
with such transfer and with the requirements hereof. The determination of the Board of Directors as to such compliance shall be
final and binding on the Optionee. The Optionee shall not be deemed to be the holder of, or to have any of the rights of a holder
with respect to, any shares of Stock subject to this Stock Option unless and until this Stock Option shall have been exercised
pursuant to the terms hereof, the Company or the transfer agent shall have transferred the shares to the Optionee, and the Optionee’s
name shall have been entered as the stockholder of record on the books of the Company. Thereupon, the Optionee shall have full
voting, dividend and other ownership rights with respect to such shares of Stock.

 

( g) Upon satisfaction of the conditions
set forth in this Section to the complete and unconditional approval of the Board of Directors, The certificate or certificates
for shares of Common Stock as to which the Options shall be exercised shall be registered in the name of the person or persons
exercising the Options.

 

6. Limitations on Transferability.

 

(a) Non-Assignable. This Agreement
is personal to the Optionee, is non-assignable and is not transferable in any manner, by operation of law or otherwise, other than
by will or the laws of descent and distribution, or by express permission of the Company and only if such permission may be legally
given. This Stock Option is exercisable, during the Optionee’s lifetime, only by the Optionee, and thereafter, only by the
Optionee’s legal representative or legatee.

 

(b) Lock-Up Agreement. In connection
with any underwritten public offering of shares of the Stock made by the Company pursuant to a registration statement filed under
the Securities Act, the Optionee shall not offer, sell, contract to sell, pledge, hypothecate, grant any option to purchase or
make any short sale of, or otherwise dispose of any Stock (including but not limited to Stock subject to this Option) or any rights
to acquire Stock of the Company for such period beginning on the date of filing of such registration statement with the Securities
and Exchange Commission and ending at the time as may be established by the underwriters for such public offering; provided, however,
that such period shall end not later than one hundred eighty (180) days from the effective date of such registration statement.
The foregoing limitation shall not apply to shares registered for sale in such public offering.

 

(c) No transfer of the Options by the Optionee
by will or by the laws of descent and distribution shall be effective to bind the Company unless the Company shall have been furnished
with written notice thereof and a copy of the letters testamentary or such other evidence as the Board may deem necessary to establish
the authority of the estate and the acceptance by the Transferee or Transferees of the terms and conditions of the Options

 

7. Adjustments.  Upon the occurrence
of any of the following events, the Optionee’s rights with respect to Options granted to such Optionee hereunder shall be
adjusted as hereinafter provided unless otherwise specifically provided in a written agreement between the Optionee and the Company
relating to such Options:

 

(a) If the shares of Common Stock shall
be subdivided or combined into a greater or smaller number of shares, respectively, or if the Company shall issue any shares of
its Common Stock as a stock dividend on its outstanding shares of Common Stock, the number of shares of Common Stock deliverable
upon the exercise of the Options shall be appropriately increased or decreased proportionately, and appropriate adjustments shall
be made in the exercise price per share to reflect such subdivision, combination or stock dividend, as applicable;

 

(b) If the Company is to be consolidated
with or acquired by another entity pursuant to an acquisition, the board of directors of any entity assuming the obligations of
the Company hereunder (the “Successor Board”) shall either (i) make appropriate provision for the continuation of such
Options by substituting on an equitable basis for the shares then subject to such Options the consideration payable with respect
to the outstanding shares of Common Stock of the Company in connection with such acquisition or (ii) terminate all Options in exchange
for a cash payment equal to the excess of the fair market value of the shares of Common Stock subject to such Options over the
exercise price thereof;

 

     

     

    

 

(c) In the event of a recapitalization
or reorganization of the Company (other than a transaction described in Section 7(b) above) pursuant to which securities of the
Company or of another corporation are issued with respect to the outstanding shares of Common Stock, the Optionee upon exercising
the Options shall be entitled to receive for the purchase price paid upon such exercise, the securities such Optionee would have
received if such Optionee had exercised such Optionee’s Options prior to such recapitalization or reorganization;

 

(d) Except as expressly provided herein,
no issuance by the Company of shares of Common Stock of any class or securities convertible into shares of Common Stock of any
class shall affect, and no adjustment by reason thereof shall be made with respect to, the number or exercise price of shares subject
to Options.  No adjustments shall be made for dividends or other distributions paid in cash or in property other than securities
of the Company;

 

(e) No fractional shares shall be issued
and the Optionee shall receive from the Company cash based on the fair market value of the shares of Common Stock in lieu of such
fractional shares; or

 

(f) The Board or the Successor Board shall
determine the specific adjustments to be made under this Section 7, and its determination shall be conclusive.  If the Optionee
receives securities or cash in connection with a corporate transaction described in Section 7(a), (b) or (c) above as a result
of owning such restricted Common Stock, such securities or cash shall be subject to all of the conditions and restrictions applicable
to the restricted Common Stock with respect to which such securities or cash were issued, unless otherwise determined by the Board
or the Successor Board.

 

8. Necessity to Become Holder of Record.
 Neither the Optionee, the Optionee’s estate, nor the Transferee have any rights as a shareholder with respect to any
shares of Common Stock covered by the Options until such Optionee, estate or Transferee, as applicable, shall have become the holder
of record of such shares of Common Stock.  No adjustment shall be made for cash dividends or cash distributions, ordinary
or extraordinary, in respect of such shares of Common Stock for which the record date is prior to the date on which such Optionee,
estate or Transferee, as applicable, shall become the holder of record thereof.

 

9. Conditions to Exercise of Options.
  

(a) In order to enable the Company
to comply with the Securities Act and relevant state law, the Company may require the Optionee, the Optionee’s estate or
any Transferee, as a condition of the exercising of the Options granted hereunder, to give written assurance satisfactory to the
Company that the shares of Common Stock subject to the Options are being acquired for such Optionee’s, estate’s or
Transferee’s, as applicable, own account, for investment only, with no view to the distribution of same, and that any subsequent
resale of any such shares of Common Stock either shall be made pursuant to a registration statement under the Securities Act and
applicable state law which has become effective and is current with regard to the shares of Common Stock being sold, or shall be
pursuant to an exemption from registration under the Securities Act and applicable state law.

 

(b) The Options are subject to the
requirement that, if at any time the Board shall determine, in its sole and absolute discretion, that the listing, registration
or qualification of the shares of Common Stock subject to the Options upon any securities exchange, quotation system or under any
state or federal law, or the consent or approval of any governmental regulatory body, is necessary as a condition of, or in connection
with the issue or purchase of such shares of Common Stock under the Options, the Options may not be exercised in whole or in part
unless such listing, registration, qualification, consent or approval shall have been effected.  

 

     

     

    

 

10. Duties of Company.  The
Company will at all times during the term of the Options:

 

( a) Reserve and keep available for
issue such number of shares of its authorized and unissued shares of Common Stock as will be sufficient to satisfy the requirements
of this Agreement;

 

( b) Pay all original issue taxes
with respect to the issue of shares of Common Stock pursuant hereto and all other fees and expenses necessarily incurred by the
Company in connection therewith; and

 

 c) Use its best efforts to comply
with all laws and regulations which, in the opinion of counsel for the Company, shall be applicable thereto.

 

11. Severability.  In the event
any parts of this Agreement are found to be void, the remaining provisions of this Agreement shall nevertheless be binding with
the same effect as though the void parts were deleted.

 

12. Arbitration.  Any controversy,
dispute or claim arising out of or relating to this Agreement, or its interpretation, application, implementation, breach or enforcement
which the parties hereto are unable to resolve by mutual agreement, shall be settled by submission by either party of the controversy,
claim or dispute to binding arbitration in Middlesex County, New Jersey (unless the parties agree in writing to a different location),
before a single arbitrator in accordance with the rules of the American Arbitration Association then in effect. The decision and
award made by the arbitrator shall be final, binding and conclusive on all parties hereto for all purposes, and judgment may be
entered thereon in any court having jurisdiction thereof.

 

13. Benefit.  This Agreement
shall be binding upon and inure to the benefit of the parties hereto and their legal representatives, successors and assigns.

 

14. Notices and Addresses.  All
notices, offers, acceptance and any other acts under this Agreement (except payment) shall be in writing, and shall be sufficiently
given if delivered to the addressees in person, by FedEx or similar receipted delivery, or by facsimile delivery as follows:

 

	The Optionee 	If to the Company: 
	 	 
	Angelo DeRosa	1105 Green Grove Rd.
	1105 Green Grove Rd, Neptune, NJ 07753	Neptune, NJ 07753

 

or to such other address
as either of them, by notice to the other, may designate from time to time.  The transmission confirmation receipt from the
sender’s facsimile machine shall be evidence of successful facsimile delivery. Time shall be counted to, or from, as the
case may be, the delivery in person or by mailing.

 

15.  Attorney’s Fees.
 In the event that there is any controversy or claim arising out of or relating to this Agreement, or to the interpretation,
breach or enforcement thereof, and any action or proceeding is commenced to enforce the provisions of this Agreement, the prevailing
party shall be entitled from the non-prevailing party to its reasonable attorneys’ fee, costs and expenses.

 

16. Governing Law.  This Agreement
and any dispute, disagreement, or issue of construction or interpretation arising hereunder whether relating to its execution,
its validity, the obligations provided herein or performance, shall be governed or interpreted according to the laws of the State
of New Jersey without regard to choice of law considerations.  

 

17. Oral Evidence.  This Agreement
constitutes the entire agreement between the parties hereto and supersedes all prior oral and written agreements between the parties
hereto with respect to the subject matter hereof. Neither this Agreement nor any provision hereof may be changed, waived, discharged
or terminated except by a statement in writing signed by the party or parties against which enforcement or the change, waiver discharge
or termination is sought.

 

     

     

    

 

18. Counterparts.  This Agreement
may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute
one and the same instrument.  The execution of this Agreement may be made by facsimile signature, which shall be deemed to
be an original.

 

19. Section Headings.  Section
headings herein have been inserted for reference only and shall not be deemed to limit or otherwise affect, in any matter, or be
deemed to interpret in whole or in part, any of the terms or provisions of this Agreement.

 

IN WITNESS WHEREOF the parties hereto
have set their hand the day and year first above written.

 

STERLING CONSOLIDATED CORP.

 

 

__________________________________

By:

Name: Darren DeRosa, CEO

Title:

 

OPTIONEE: 

	
         

        __________________________________

        By:

        Name: Angelo DeRosa

 

 

EXHIBIT A

 

FORM OF NOTICE OF OPTION EXERCISE

 

 

To: STERLING CONSOLIDATED CORP.
(the “Company”)

 

(1) The undersigned hereby elects
to purchase __________ shares of Common Stock of the Company (the “Shares”) pursuant to the terms of the Option Agreement
by and between the Company and the undersigned dated as of ________ ___, 20__, and tenders herewith payment of the exercise price
in full as set forth below.

 

(2) Payment shall take the form of
(check applicable box):

 

[  ] in lawful money of the United
States in the form of a check made payable by the undersigned to the Company;

 

[  ] in lawful money of the United
States in the form of a wire transfer to the account specified by the Company; or

 

[  ] in the form of shares of Common
Stock; or

 

[ ] in any other form that complies with
Section 5(d) herein.

 

     

     

    

 

(3) Please issue a certificate or certificates
representing the Shares in the name of the undersigned or in such other name as is specified below:

 

____________________________________

 

The Shares shall be delivered via overnight
courier (with tracking information to be provided to the undersigned) to the following address:

_________________________________________________________

_____________________________Attn: ________________________

Tel: _________________________

 

OPTIONEE 

 

 

________________________

 

 

 

 

Received by Sterling
Consolidated Corp. on _______, __

 

_____________________________________________

 

Name: _______________________________________

 

Title: ________________________________________

 

Broker Information:

 

 

Firm Name

 

	 	 	 
	 	 	 
	Contact Person	 	 

 

	 	 	 
	 	 	 
	Broker Address	 	 

 

	 	 	 	 	 
	 	 	 	 	 
	City, State, Zip Code	 	Phone Number	 	 

 

	 	 	 
	 	 	 
	Broker Account Number	 	 

 

 

	 	 	 
	 	 	 
	Electronic Transfer Number:

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