SEC Contract Filing

Filing Date: 2019-02-05

Document Content:
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>s115799_ex10-3.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit
10.3</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>PLEDGE
AND ESCROW AGREEMENT</U></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PLEDGE
AND ESCROW AGREEMENT, dated as of February 4, 2019 (this &ldquo;Agreement&rdquo;), by and among One Horizon Group, Inc., a Delaware
corporation (&ldquo;OHGI&rdquo;), Sargon Petros, Mark Hogbin, Rita Liu and Jeremy Chung (collectively, the &ldquo;Founding Stockholders&rdquo;
or &ldquo;Stockholders&rdquo;), and Mandelbaum Salsburg P.C. (the &quot;Agent&quot;).</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Preliminary
Statement</U></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Concurrently
with the execution and delivery hereof the Founding Stockholders, Banana Whale Studios Pte. Ltd., a Singapore corporation (&ldquo;BW&rdquo;)
and OHGI are entering into an agreement pursuant to which BW will issue to OHGI a Promissory Note of BW in the amount of five
hundred thousand ($500,000) U.S. Dollars (the &ldquo;Note&rdquo;). Each of the Founding Stockholders has executed and delivered
a Limited Recourse Guaranty in favor of OHGI whereby he or she has guaranteed the payment of the Obligations of BW, as defined
in the Guaranty, to the extent of the shares of common stock of BW to be owned by him or her. Upon the completion of such transactions,
the Founding Stockholders, in the aggregate, will own 5,500,000 shares of the common stock of BW (the &ldquo;Pledged Shares&rdquo;).
The number of Pledged Shares owned by each Stockholder is set forth on the signature page hereto.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Founding Stockholders have agreed to deposit the 5,500,000 Pledged Shares in escrow with the Agent, who is counsel to OHGI, on
the terms and subject to the conditions set forth in this Agreement.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOW,
THEREFORE, in consideration of the foregoing promises and other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the parties hereto agree as follows:</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Stockholders have concurrently with the execution of this Agreement deposited stock certificates evidencing the Pledged Shares
with the Agent to be held by the Agent on the terms and conditions set forth herein, the receipt of which is hereby acknowledged
by the Agent. In the event that during the term of this Agreement any stock dividend, reclassification, readjustment or other
change is declared or made in the capital structure of BW, all additional shares issued by reason of any such change (the &ldquo;Additional
Shares&rdquo;) shall be deposited with the Agent, and shall be deemed to be part of the escrowed property held by the Agent under
the terms of this Agreement in the same manner as the shares of common stock originally deposited hereunder. In addition, all
dividends and other distributions (other than stock or liquidating dividends) at any time and from time to time declared or paid
upon any of the Pledged Shares and Additional Shares shall be deposited in escrow with the Agent and be part of the escrowed property
held by the Agent hereunder, subject to the conditions for release set forth in Section 4. All