Form of Non-Qualified Stock Option Agreement

Exhibit 4.2

LMP Automotive Holdings, Inc.
2018 Equity Incentive Plan

Incentive Stock Option Agreement

Dear XXXX,

On XXXX, 2018, the Committee approved a grant of an Incentive Stock Option (the “Option”) to you to purchase Common Stock of LMP Automotive Holdings, Inc. (the “Company”) pursuant to the LMP Automotive Holdings, Inc. 2018 Equity Incentive Plan (the “Plan”). The Option shall constitute and be treated at all times by you and the Company as an “incentive stock option,” as defined under Section 422(b) of the Internal Revenue Code of 1986, as amended.

You are granted an Option to purchase X,000 shares of Common Stock of the Company at the price of $4.75 per share.

Vesting. This Option may be exercised only to the extent it is vested. Subject to you remaining in the employ of the Company on the applicable vesting dates below, this Option shall vest as follows:

X000 shares of your Option will vest on the day you are employed by the Company for three months. Thereafter, the remainder of your options will vest pro rata on an annual basis over a two year (2) period as long as you are employed with the Company during that time period. If you are terminated or resign from your employment with the Company for any reason, all unvested options are immediately terminated.

1. Duration of Vested Options. Except as otherwise provided herein, vested options may be exercised as follows:

a. If the Company is a public company then at any time up to three (3) month(s) after termination of employment with the Company, provided, however in the event your termination of employment is due to your death or disability, the vested options may be exercised for one (1) year following such event. In no case, however, may the vested options be exercised after 5 years from date of grant.

b. If the Company is a private company then at any time up to three (3) month(s) after termination of employment with the Company, provided, however in the event your termination of employment is due to your death or disability, the vested options may be exercised for one (1) year following such event. In no case, however, may the vested options be exercised after five (5) years from date of grant.

c. If the Company has a Change in Control event which is defined as “The acquisition (whether directly or indirectly) by any person of fifty percent (50%) or more of the combined voting power of the then outstanding voting securities or interests of the Company entitled to vote generally in the election of directors,” then within three (3) months after a Change in Control.

2. Exercise of Option.

(a) Right to Exercise. This Option is exercisable during its term in accordance with the Vesting Schedule set out in Section 1.

(b) Method of Exercise. This Option is exercisable by delivery of an exercise notice, in the form attached as Exhibit A (the “Exercise Notice”), which shall state the election to exercise the Option, the number of shares of Common Stock in respect of which the Option is being exercised (the “Exercised Shares”), and such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan. The Exercise Notice shall be completed by you and delivered to the Corporate Secretary. The Exercise Notice shall be accompanied by payment of the aggregate exercise price as to all Exercised Shares. This Option shall be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by such aggregate exercise price.

No shares of Common Stock shall be issued pursuant to the exercise of this Option unless such issuance and exercise comply with applicable laws. Assuming such compliance, for income tax purposes the exercised Shares shall be considered transferred to you on the date the Option is exercised with respect to such Exercised Shares.

3. Method of Payment. Payment of the aggregate Exercise Price shall be by any of the following, or a combination thereof, at your election:

(a) Wire as follows:

JPMorgan Chase Bank, N.A., 270 Park Avenue, New York, NY 10017

ABA # - 021000021

Account Number - 758060615

For Account of - LMP AUTOMOTIVE HOLDINGS INC.

The SWIFT code for incoming USD is CHASUS33

(b) check;

(c) consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan; or

(d) surrender of other shares of Common Stock which (i) in the case of shares of Common Stock acquired upon exercise of an option, have been owned by you for more than six (6) months on the date of surrender, AND (ii) have a fair market value on the date of surrender equal to the aggregate Exercise Price of the Exercised Shares.

4. Non-Assignability of Option. This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during your lifetime only by you except in the case of your disability, this Option may be exercised by your representative. The terms of the Plan and this Agreement shall be binding upon your executors, administrators, heirs, successors and assigns.

The Plan is incorporated herein by reference and attached as Exhibit B. The Plan and this Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and you with respect to the subject matter hereof, and may not be modified adversely to your interest except by means of a writing signed by the Company and you. This Agreement is governed by the laws of the State of Delaware.

By your signature and the signature of the Company’s representative below, you and the Company agree that the Option is granted under and governed by the terms and conditions of the Plan and this Agreement. You have reviewed the Plan and this Agreement in their entirety, have had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understand all provisions of the Plan and this Agreement. You hereby agree to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions relating to the Plan and Agreement. You further agree to notify the Company upon any change in your residence address indicated below.

Exhibit A

EXERCISE NOTICE

LMP Automotive Holdings, Inc.

601 N. State Rd. 7

Plantation, FL 33317

Email: ***@***

(date)

Re: Incentive Stock Option

Notice is hereby given pursuant to Section 3 of my Agreement that I elect to purchase the number of shares set forth below at the exercise price set forth in my Agreement:

A check in the amount of the aggregate price of the shares being purchased is attached [or specify other method of payment].

I understand that the shares of Common Stock that I receive upon exercise of my Option may not be freely tradable.

Further, I understand that, as a result of this exercise of rights, I will recognize income in an amount equal to the amount by which the fair market value of the shares of Common Stock exceeds the exercise price. I agree to report such income in accordance with then applicable law and to cooperate with the Company in establishing the withholding and corresponding deduction to the Company for its income tax purposes.

I agree to provide to the Company such additional documents or information as may be required pursuant to the Company’s 2018 Equity Incentive Plan.

Exhibit B

EQUITY INCENTIVE PLAN

5