Exhibit 10.3


 


LOCK-UP AGREEMENT


 


THIS LOCK-UP
AGREEMENT (this “Agreement”) is made as of [●], 2017 by and between (i) Atlantic Alliance Partnership
Corp., a British Virgin Islands business company with limited liability, (including any successor entity thereto, the “Company”)
and (ii) the undersigned (“Holder”). Any capitalized term used but not defined in this Agreement will
have the meaning ascribed to such term in the Merger Agreement (as defined below).


 


WHEREAS,
the Company and Kalyx Development Inc., a Maryland corporation (“Kalyx”), are parties to that certain
Merger Agreement, dated as of May 8, 2017 (as amended, the “Merger Agreement”), pursuant to which Kalyx
will merge with and into the Company, with the Company continuing as the surviving entity as a Maryland incorporated real estate
investment trust (the “Merger”), and as a result of which, among other matters, (i) all of the issued
and outstanding capital stock of Kalyx immediately prior to the effective time of the Merger will no longer be outstanding and
shall automatically be cancelled and shall cease to exist, in exchange for the right of the holder of such shares to receive a
number of shares of the capital stock of the Company, as set forth in the Merger Agreement, and (ii) outstanding Kalyx Warrants
will be assumed by the Company (such assumed warrants, the “Company Warrants”), with certain warrants
being amended in accordance with the terms set out in the Merger Agreement, all upon the terms and subject to the conditions set
forth in the Merger Agreement and in accordance with the applicable provisions of the Maryland General Corporation Law, as amended.


 


WHEREAS,
holders of Class A Units and LTIP profits interests of the Operating Partnership (the “OP Units”) have
the right to convert those OP Units for shares of Kalyx Common Stock under certain circumstances, as set forth in the Operating
Partnership Agreement, and after the consummation of the transactions contemplated by the Merger Agreement (the “Closing”),
the OP Units will instead have the right to convert into shares of Company common stock;


 


WHEREAS,
Holder is a holder of shares of Kalyx stock, Kalyx Warrants and/or OP Units in such amounts as set forth underneath Holder’s
name on the signature page hereto; and


 


WHEREAS,
pursuant to the Merger Agreement, and in view of the valuable consideration to be received by Holder thereunder, the Company and
Holder desire to enter into this Agreement, pursuant to which the shares of Company common stock issued to Holder as Merger Consideration,
the Company Warrants issued to Holder, all shares of Company common stock underlying the Company Warrants received by Holder in
the Merger and all OP Units held by Holder and shares of Company common stock received by Holder in conversion of Holder’s
OP Units (all such securities, together with any securities paid as dividends or distributions with respect to such securities
or into which such securities are exchanged or converted, the “Restricted Securities”) shall become subject
to limitations on disposition as set forth herein.


 






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 NOW,
THEREFORE, in consideration of the premises set forth above, which are incorporated in this Agreement as if fully set forth
below, and intending to be legally bound hereby, the parties hereby agree as follows:


 


	 	1.	Lock-Up Provisions.







 


(a)  Holder
hereby agrees not to, during the period commencing from the Closing and continuing for the earliest of: (x) the one (1) year anniversary
date of the Closing, (y) the date on which the closing sale price of the Company’s common stock equals or exceeds Twelve
U.S. Dollars (US$12.00) per share (as adjusted for stock splits, stock dividends, reorganizations and recapitalizations) for any
twenty (20) trading days within any thirty (30) trading day period commencing at least one-hundred and fifty (150) days after
the Closing, and (z) the date after the Closing on which the Company consummates a transaction, including a liquidation,
merger, stock exchange or other similar transaction (a “Subsequent Transaction”), which results in all
of the Company’s stockholders having the right to exchange their shares of Company common stock for cash, securities or
other property (such period, the “Lock-Up Period”): (i) lend, offer, pledge, hypothecate, encumber,
donate, assign, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant
any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any Restricted Securities,
(ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences
of ownership of the Restricted Securities, or (iii) publicly disclose the intention to do any of the foregoing, whether any
such transaction described in clauses (i), (ii), or (iii) above is to be settled by delivery of Restricted Securities or other
securities, in cash or otherwise (any of the foregoing described in clauses (i), (ii), or (iii), a “Prohibited Transfer”).
The foregoing sentence shall not apply to the transfer of any or all of the Restricted Securities owned by Holder, (A) by gift,
will or intestate succession upon the death of Holder, (B) to any Permitted Transferee or (C) pursuant to a court order or settlement
agreement related to the distribution of assets in connection with the dissolution of marriage or civil union; provided, however,
that in any of cases (A), (B) or (C) it shall be a condition to such transfer that the transferee executes and delivers to the
Company an agreement stating that the transferee is receiving and holding the Restricted Securities subject to the provisions
of this Agreement applicable to Holder, and there shall be no further transfer of such Restricted Securities except in accordance
with this Agreement. As used in this Agreement, the term “Permitted Transferee” shall mean: (I) the
members of Holder’s immediate family (for purposes of this Agreement, “immediate family” shall mean any relationship
by blood, marriage or adoption, not more remote than first cousin), (II) any trust for the direct or indirect benefit of Holder
or the immediate family of Holder, (III) if Holder is a trust, to the trustor or beneficiary of such trust or to the estate of
a beneficiary of such trust, (IV) as a distribution to limited partners, shareholders, members of, or owners of similar equity
interests in Holder upon the liquidation and dissolution of Holder or (V) to any affiliate of Holder or to any investment fund
or other entity controlled by Holder.


 


(b)  If
any Prohibited Transfer is made or attempted contrary to the provisions of this Agreement, such purported Prohibited Transfer shall
be null and void ab initio, and the Company shall refuse to recognize any such purported transferee of the Restricted Securities
as one of its equity holders for any purpose. In order to enforce this Section 1, the Company may impose stop-transfer
instructions with respect to the Restricted Securities of Holder (and permitted transferees and assigns thereof) until the end
of the Lock-Up Period.


 


(c)  During
the Lock-Up Period, each certificate evidencing any Restricted Securities shall be stamped or otherwise imprinted with a legend
in substantially the following form, in addition to any other applicable legends:


 


“THE SECURITIES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER SET FORTH IN A LOCK-UP AGREEMENT, DATED AS OF [●], 2017, BY AND
AMONG THE ISSUER OF SUCH SECURITIES (THE “COMPANY”) AND THE COMPANY’S SHAREHOLDER NAMED THEREIN, AS AMENDED.
A COPY OF SUCH LOCK-UP AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.”


 


(d)  For
the avoidance of any doubt, Holder shall retain all of its rights as a shareholder of the Company during the Lock-Up Period, including
the right to vote any Restricted Securities.


 






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	 	2.	Miscellaneous.







 


(a)  Termination
of Merger Agreement. Notwithstanding anything to the contrary contained herein, in the event that the Merger Agreement is
terminated in accordance with its terms prior to the Closing, this Agreement and all rights and obligations of the parties
hereunder shall automatically terminate and be of no further force or effect.


 


(b)  Binding
Effect; Assignment. This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties
hereto and their respective permitted successors and assigns. This Agreement and all obligations of Holder are personal to Holder
and may not be transferred or delegated by Holder at any time. The Company may freely assign any or all of its rights under this
Agreement, in whole or in part, to any successor entity (whether by merger, consolidation, equity sale, asset sale or otherwise)
without obtaining the consent or approval of Holder.


 


(c)  Authorization
on Behalf of the Company. The parties acknowledge and agree that notwithstanding anything to the contrary contained in this
Agreement, any determinations, actions or other authorizations under this Agreement on behalf of the Company, including enforcing
the Company’s rights and remedies under this Agreement, or providing any waivers with respect to the provisions hereof, shall
solely be made by the Company’s directors who qualify as independent directors under the applicable U.S. national stock exchange
on which shares of the Company’s common stock are then listed (or if the Company’s common stock no longer listed on
an U.S. national stock exchange, the last national stock exchange on which the Company’s common stock was listed) and are
otherwise not the Holder or an Affiliate of the Holder (the “Independent Directors”), with the Independent
Directors acting by majority vote, consent or approval thereof. In the event that the Company at any time does not have any Independent
Directors, so long as Holder has any remaining obligations under this Agreement, the Company will promptly appoint one in connection
with this Agreement. Without limiting the foregoing, in the event that Holder or Holder’s Affiliate serves as a director,
officer, employee or other authorized agent of the Company or any of its current or future Affiliates, Holder and/or Holder’s
Affiliate shall have no authority, express or implied, to act or make any determination on behalf of the Company or any of its
current or future Affiliates in connection with this Agreement or any dispute or Action with respect hereto.


 


(d)  Third
Parties. Nothing contained in this Agreement or in any instrument or document executed by any party in connection with the
transactions contemplated hereby shall create any rights in, or be deemed to have been executed for the benefit of, any person
or entity that is not a party hereto or thereto or a successor or permitted assign of such a party.


 


(e)  Governing
Law; Jurisdiction. This Agreement and any dispute or controversy arising out of or relating to this Agreement shall be governed
by and construed in accordance with the laws of the State of New York, without regard to the conflict of law principles thereof.
All Actions arising out of or relating to this Agreement shall be heard and determined exclusively in any state or federal court
located in New York, New York (or in any appellate courts thereof) (the “Specified Courts”). Each party
hereto hereby (i) submits to the exclusive jurisdiction of any Specified Court for the purpose of any Action arising out of
or relating to this Agreement brought by any party hereto and (ii) irrevocably waives, and agrees not to assert by way of
motion, defense or otherwise, in any such Action, any claim that it is not subject personally to the jurisdiction of the above-named
courts, that its property is exempt or immune from attachment or execution, that the Action is brought in an inconvenient forum,
that the venue of the Action is improper, or that this Agreement or the transactions contemplated hereby may not be enforced in
or by any Specified Court. Each party agrees that a final judgment in any Action shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by Law. Each party irrevocably consents to the service of
the summons and complaint and any other process in any other action or proceeding relating to the transactions contemplated by
this Agreement, on behalf of itself, or its property, by personal delivery of copies of such process to such party at the applicable
address set forth in Section 2(h). Nothing in this Section 2(e) shall affect the right of any party
to serve legal process in any other manner permitted by applicable law.


 






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(f)  WAIVER
OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY
HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY ACTION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO (i) CERTIFIES THAT NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF ANY ACTION, SEEK TO ENFORCE THAT FOREGOING WAIVER AND
(ii) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 2(f).


 


(g)  Interpretation.
The titles and subtitles used in this Agreement are for convenience only and are not to be considered in construing or interpreting
this Agreement. In this Agreement, unless the context otherwise requires: (i) any pronoun used in this Agreement shall include
the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural
and vice versa; (ii) “including” (and with correlative meaning “include”) means including without limiting
the generality of any description preceding or succeeding such term and shall be deemed in each case to be followed by the words
“without limitation”; (iii) the words “herein,” “hereto,” and “hereby” and other
words of similar import in this Agreement shall be deemed in each case to refer to this Agreement as a whole and not to any particular
section or other subdivision of this Agreement; and (iv) the term “or” means “and/or”. The parties have
participated jointly in the negotiation and drafting of this Agreement. Consequently, in the event an ambiguity or question of
intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption
or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement.


 


(h)  Notices.
All notices, consents, waivers and other communications hereunder shall be in writing and shall be deemed to have been duly given
when delivered (i) in person, (ii) by facsimile or other electronic means, with affirmative confirmation of receipt, (iii) one
Business Day after being sent, if sent by reputable, nationally recognized overnight courier service or (iv) three (3) Business
Days after being mailed, if sent by registered or certified mail, pre-paid and return receipt requested, in each case to the applicable
party at the following addresses (or at such other address for a party as shall be specified by like notice):


 


	
        If to the Company prior to the Closing, to:

         

        Atlantic Alliance Partnership Corp.

        590 Madison Avenue

        New York, New York 10022

        Attn: Jonathan Mitchell

        Telephone No: 212-409-2434

        Email: jmitchell@aapcacq.com
	
        with a copy (that will not constitute notice) to:
        

         

        Ellenoff Grossman & Schole LLP

        1345 Avenue of the Americas, 11th Floor

        New York, New York 10105

        Attention: Douglas Ellenoff

        Facsimile No.: (212) 370-7889

        Telephone No.: (212) 370-1300

        Email: ellenoff@egsllp.com




 






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        If to the Company after the Closing, to:

         

        Kalyx Properties Inc.

        366 Madison Avenue, 11th Floor

        New York, New York 10017

        Attn: George M. Stone

        Facsimile No.: 212-315-3446

        Telephone No: 914-921-9252

        Email: gstone@Kalyxdevelopment.com
	
        with a copy (that will not constitute notice) to:
        

         

        Ellenoff Grossman & Schole LLP

        1345 Avenue of the Americas, 11th Floor

        New York, New York 10105

        Attention: Douglas Ellenoff

        Facsimile No.: (212) 370-7889

        Telephone No.: (212) 370-1300

        Email: ellenoff@egsllp.com

         

        and with a copy (that will not constitute notice)
        to: 

         

        Reitler Kailas & Rosenblatt LLC

        800 Third Avenue 21st Floor

        New York, New York 10022

        Attn: Scott Rosenblatt

        Fax No.: 212-371-5500

        Telephone No: 212-209-3040

        Email: srosenblatt@reitlerlaw.com

	 
	If to Holder, to: the address set forth below Holder’s name on the signature page to this Agreement.


 


(i)  Amendments
and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance, and either retroactively or prospectively) only with the written consent of the Company
and Holder. No failure or delay by a party in exercising any right hereunder shall operate as a waiver thereof. No waivers of or
exceptions to any term, condition, or provision of this Agreement, in any one or more instances, shall be deemed to be or construed
as a further or continuing waiver of any such term, condition, or provision.


 


(j)  Severability.
In case any provision in this Agreement shall be held invalid, illegal or unenforceable in a jurisdiction, such provision shall
be modified or deleted, as to the jurisdiction involved, only to the extent necessary to render the same valid, legal and enforceable,
and the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby
nor shall the validity, legality or enforceability of such provision be affected thereby in any other jurisdiction. Upon such determination
that any term or other provision is invalid, illegal or incapable of being enforced, the parties will substitute for any invalid,
illegal or unenforceable provision a suitable and equitable provision that carries out, so far as may be valid, legal and enforceable,
the intent and purpose of such invalid, illegal or unenforceable provision.


 


(k)  Specific
Performance. Holder acknowledges that its obligations under this Agreement are unique, recognizes and affirms that in the event
of a breach of this Agreement by Holder, money damages will be inadequate and the Company will have not adequate remedy at law,
and agrees that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed by
Holder in accordance with their specific terms or were otherwise breached. Accordingly, the Company shall be entitled to an injunction
or restraining order to prevent breaches of this Agreement by Holder and to enforce specifically the terms and provisions hereof,
without the requirement to post any bond or other security or to prove that money damages would be inadequate, this being in addition
to any other right or remedy to which the Company may be entitled under this Agreement, at law or in equity.


 






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(l)   Entire
Agreement. This Agreement constitutes the full and entire understanding and agreement among the parties with respect to the
subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties
is expressly canceled; provided that, for the avoidance of doubt, the foregoing shall not affect the rights and obligations
of the parties under the Merger Agreement or any Ancillary Document. Notwithstanding the foregoing, nothing in this Agreement shall
limit any of the rights or remedies of the Company or any of the obligations of Holder under any other agreement between Holder
and the Company or any certificate or instrument executed by Holder in favor of the Company, and nothing in any other agreement,
certificate or instrument shall limit any of the rights or remedies of the Company or any of the obligations of Holder under this
Agreement.


 


(m)  Further
Assurances. From time to time, at another party’s request and without further consideration (but at the requesting party’s
reasonable cost and expense), each party shall execute and deliver such additional documents and take all such further action as
may be reasonably necessary to consummate the transactions contemplated by this Agreement.


 


(n)   Counterparts;
Facsimile.  This Agreement may also be executed and delivered by facsimile signature or by email in portable document
format in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and
the same instrument.


 


[Remainder of Page Intentionally
Left Blank; Signature Pages Follow]


 






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IN WITNESS
WHEREOF, the parties have executed this Lock-Up Agreement as of the date first written above.


 


	The Company:
	 
	Atlantic Alliance Partnership Corp.
	 	 






	By:	 	 
	Name:	 	 
	Title:	 	 


 





	Holder:



	 
	 	 
	By:	 	 
	Name:	 	 


  


Number
and Type of Shares of Kalyx Capital Stock, Kalyx Warrants and/or OP Units:


 


Shares
of Kalyx Capital Stock:


 


________
shares of Kalyx Common Stock


________
shares of Kalyx Series A Preferred Stock


________
shares of Kalyx Series B Preferred Stock


 


Kalyx
Warrants:


 


________
Kalyx Common warrants


________
Kalyx Series A Preferred Stock warrants


________
Kalyx Series B Preferred Stock warrants


 


OP
Units:


 


________
Class A Units


________
LTIP profits interests


 


Address
for Notice:


 


Address:
__________________________________


__________________________________________


__________________________________________


Facsimile
No.: _______________________________


Telephone
No.: ______________________________


Email: _____________________________________




 


{Signature Page to Lock-Up Agreement}


 


 


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