Exhibit 4.1


 


RIGHTS AGREEMENT


 


Agreement made as of August
12, 2015 between E-compass Acquisition Corp., a Cayman Islands exempted company, with offices at 6F/Tower, 2 West Proper Centre,
No.5, Guanghua Road, Chaoyang District, Beijing, 100020, P.R. China (“Company”), and Continental Stock Transfer &
Trust Company, a New York corporation, with offices at 17 Battery Place, New York, New York 10004 (“Right Agent”).


 


WHEREAS, the Company is
engaged in a public offering (“Public Offering”) and has filed with the Securities and Exchange Commission (the “SEC”)
a Registration Statement on Form S-1, No. 333-204054 (“Registration Statement”), for the registration, under the Securities
Act of 1933, as amended (“Act”) of its units, each unit (“Unit”) comprised of one ordinary share of the
Company, par value $.0001 per share (“Ordinary Share”), and one right to receive one-tenth of one Ordinary Share upon
the happening of the triggering event described herein and, in connection therewith, will issue and deliver up to 4,600,000 rights
(“Public Rights”) to the investors in the Public Offering; and


 


WHEREAS, the Company has
received binding commitments from an affiliate (the “Affiliate”) of Richard Xu, the Company’s Executive Chairman
and Chief Executive Officer, to purchase in a private placement (“Private Offering”) up to an aggregate of 310,000
Units, and in connection therewith, will issue and deliver up to an aggregate of 310,000 rights (“Private Rights”)
upon consummation of such Private Offering; and


 


WHEREAS, the Company has
received binding commitments from the Affiliate to purchase from the Company at a price of $10.00 per unit an additional number
of Units upon the happening of certain events as described in the Registration Statement, and in connection therewith, will issue
and deliver additional rights (“Commission Rights” and together with the Public Rights and Private Rights, the “Rights”);


 


WHEREAS, the Company desires
the Right Agent to act on behalf of the Company, and the Right Agent is willing to so act, in connection with the issuance, registration,
transfer and exchange of the Rights; and


 






    	 



    	 



    

 


WHEREAS, the Company desires
to provide for the form and provisions of the Rights, the terms upon which they shall be issued, and the respective rights, limitation
of rights, and immunities of the Company, the Right Agent, and the holders of the Rights; and


 


WHEREAS, all acts and
things have been done and performed which are necessary to make the Rights, when executed on behalf of the Company and countersigned
by or on behalf of the Right Agent, as provided herein, the valid, binding and legal obligations of the Company, and to authorize
the execution and delivery of this Agreement.


 


NOW, THEREFORE, in consideration
of the mutual agreements herein contained, the parties hereto agree as follows:


 


1.            Appointment of Right Agent. The
Company hereby appoints the Right Agent to act as agent for the Company for the Rights, and the Right Agent hereby accepts such
appointment and agrees to perform the same in accordance with the terms and conditions set forth in this Agreement.


 


2.            Rights.


 


2.1.          Form of Right. Each Right
shall be issued in registered form only, shall be in substantially the form of Exhibit A hereto, the provisions of which are incorporated
herein and shall be signed by, or bear the facsimile signature of, the Chairman of the Board, President or Chief Executive Officer
and Treasurer, Secretary or Assistant Secretary of the Company and shall bear a facsimile of the Company’s seal. In the
event the person whose facsimile signature has been placed upon any Right shall have ceased to serve in the capacity in which
such person signed the Right before such Right is issued, it may be issued with the same effect as if he or she had not ceased
to be such at the date of issuance.


 


2.2.          Effect of Countersignature.
Unless and until countersigned by the Right Agent pursuant to this Agreement, a Right shall be invalid and of no effect and may
not be exchanged for Ordinary Shares.


 






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2.3.          Registration.


 


2.3.1.          Right Register. The Right
Agent shall maintain books (“Right Register”) for the registration of original issuance and the registration of transfer
of the Rights. Upon the initial issuance of the Rights, the Right Agent shall issue and register the Rights in the names of the
respective holders thereof in such denominations and otherwise in accordance with instructions delivered to the Right Agent by
the Company.


 


2.3.2.          Registered Holder. Prior
to due presentment for registration of transfer of any Right, the Company and the Right Agent may deem and treat the person in
whose name such Right shall be registered upon the Right Register (“registered holder”) as the absolute owner of such
Right and of each Right represented thereby (notwithstanding any notation of ownership or other writing on the Right Certificate
made by anyone other than the Company or the Right Agent), for the purpose of the exchange thereof, and for all other purposes,
and neither the Company nor the Right Agent shall be affected by any notice to the contrary.


 


2.4.          Detachability of Rights.
The securities comprising the Units, including the Rights, will not be separately transferable until ten business days following
the earlier to occur of: (i) the expiration of the underwriters’ overallotment option, (ii) its exercise in full or (iii)
the announcement by the underwriters of their intention not to exercise all or any remaining portion of the over-allotment option,
except that in no event will the securities comprising the Units be separately tradeable until the Company files a Current Report
on Form 8-K which includes an audited balance sheet reflecting the receipt by the Company of the gross proceeds of the Public
Offering including the proceeds received by the Company from the exercise of the over-allotment option, if the over-allotment
option is exercised on the date thereof, and (ii) the Company issues a press release and files a Current Report on Form 8-K announcing
when such separate trading shall begin.


 






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3.           Terms and Exchange of Rights


 


3.1.          Rights. Each Right shall
entitle the holder thereof to receive one-tenth of one Ordinary Share upon the happening of an Exchange Event (described below).
No additional consideration shall be paid by a holder of Rights in order to receive his, her or its Ordinary Shares upon an Exchange
Event as the purchase price for such Ordinary Shares has been included in the purchase price for the Units. In no event will the
Company be required to net cash settle the Rights. Each holder of a Right will be required to affirmatively convert his, her or
its Rights in order to receive the 1/10 of a share underlying each right (without paying any additional consideration) upon consummation
of the Exchange Event. Each holder of a Right will be required to indicate his, her or its election to convert the Rights into
the underlying shares as well as to return the original certificates evidencing the Rights to the Company.


 


3.2.          Exchange Event. An Exchange
Event shall occur upon the Company’s consummation of an initial Business Combination (as defined in the Company’s
Amended and Restated Memorandum and Articles of Association).


 


3.3.          Exchange of Rights.


 


3.3.1.          Issuance of Certificates.
As soon as practicable upon the occurrence of an Exchange Event, the Company shall direct holders of the Rights to return their
Rights certificates to the Right Agent. Upon receipt of a valid Rights certificate, the Company shall issue to the registered
holder of such Right(s) a certificate or certificates for the full number of Ordinary Shares to which he, she or it is entitled,
registered in such name or names as may be directed by him, her or it. Notwithstanding the foregoing, or any provision contained
in this Rights Agreement to the contrary, in no event will the Company be required to net cash settle the Rights. The Company
shall not issue fractional shares upon exchange of Rights. At the time of an Exchange Event, the Company will instruct the Right
Agent to round down to the nearest whole Ordinary Share.


 


3.3.2.          Valid Issuance. All Ordinary
shares issued upon an Exchange Event in conformity with this Agreement, and registered on the Company’s register of members,
shall be validly issued, fully paid and nonassessable.


 


3.3.3.          Date of Issuance. Each
person in whose name any such certificate for Ordinary Shares is issued shall for all purposes be deemed to have become the holder
of record of such shares on the date that he is registered on the Company’s register of members.


 






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3.3.4          Company Not
Surviving Following Exchange Event. Upon an Exchange Event in which the Company does not continue as the publicly held reporting
entity, the definitive agreement with the target business for a Business Combination will provide for the holders of Rights to
receive the same per share consideration the holders of the Ordinary Shares will receive in such transaction, for the number of
shares such holder is entitled to pursuant to Section 3.1 above.


 


3.5          Duration of Rights. If an
Exchange Event does not occur within 18 months from the closing of the Public Offering, the Rights shall expire and shall be worthless.


 


4.           Transfer and Exchange of Rights.


 


4.1.          Registration of Transfer.
The Right Agent shall register the transfer, from time to time, of any outstanding Right upon the Right Register, upon surrender
of such Right for transfer, properly endorsed with signatures properly guaranteed and accompanied by appropriate instructions
for transfer. Upon any such transfer, a new Right certificate representing an equal aggregate number of Rights shall be issued
and the old Right certificate shall be cancelled by the Right Agent. The Right certificate(s) so cancelled shall be delivered
by the Right Agent to the Company from time to time upon request.


 


4.2.          Procedure for Surrender of
Rights. Rights may be surrendered to the Right Agent, together with a written request for exchange or transfer, and thereupon
the Right Agent shall issue in exchange therefor one or more new Right certificate(s) as requested by the registered holder of
the Rights so surrendered, representing an equal aggregate number of Rights; provided, however, that in the event that a Right
surrendered for transfer bears a restrictive legend, the Right Agent shall not cancel such Right certificate and issue new Right
certificate(s) in exchange therefor until the Right Agent has received an opinion of counsel for the Company stating that such
transfer may be made and indicating whether the new Right certificate(s) must also bear a restrictive legend.


 


4.3.          Fractional Rights. The
Right Agent shall not be required to effect any registration of transfer or exchange which will result in the issuance of a Right
certificate for a fraction of a Right.


 






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4.4.          Service Charges. No service
charge shall be made for any exchange or registration of transfer of Rights.


 


4.5.          Adjustments to Conversion Ratios.
The number of Ordinary Shares that the holders of Rights are entitled to receive as a result of the occurrence of an Exchange
Event shall be equitably adjusted to reflect appropriately the effect of any share split, reverse share split, share dividend,
reorganization, recapitalization, reclassification, combination, exchange of shares or other like change with respect to the Ordinary
Shares occurring on or after the date hereof and prior to the Exchange Event.


 


4.6          Right Execution
and Countersignature. The Right Agent is hereby authorized to countersign and to deliver, in accordance with the terms of
this Agreement, the Rights required to be issued pursuant to the provisions of this Section 4, and the Company, whenever required
by the Right Agent, will supply the Right Agent with Rights duly executed on behalf of the Company for such purpose.


 


5.           Other Provisions Relating to Rights
of Holders of Rights.


 


5.1.          No Rights as Shareholder.
Until exchange of a Right for Ordinary Shares as provided for herein, a Right does not entitle the registered holder thereof to
any of the rights of a shareholder of the Company, including, without limitation, the right to receive dividends, or other distributions,
exercise any preemptive rights to vote or to consent or to receive notice as shareholders in respect of the meetings of shareholders
or the election of directors of the Company or any other matter.


 


5.2.          Lost, Stolen, Mutilated, or
Destroyed Right Certificate(s). If any Right certificate(s) is lost, stolen, mutilated, or destroyed, the Company and the
Right Agent may on such terms as to indemnity or otherwise as they may in their discretion impose (which shall, in the case of
a mutilated Right certificate, include the surrender thereof), issue a new Right certificate of like denomination, tenor, and
date as the Right certificate so lost, stolen, mutilated, or destroyed. Any such new Right certificate shall constitute a substitute
contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated, or destroyed Right certificate shall
be at any time enforceable by anyone.


 






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5.3.          Reservation of Ordinary Shares.
The Company shall at all times reserve and keep available a number of its authorized but unissued Ordinary Shares that will be
sufficient to permit the exchange of all outstanding Rights issued pursuant to this Agreement.


 


6.           Concerning the Right Agent and Other
Matters.


 


6.1.          Payment of Taxes. The Company
will from time to time promptly pay all taxes and charges that may be imposed upon the Company or the Right Agent in respect of
the issuance or delivery of Ordinary Shares upon the exchange of Rights, but the Company shall not be obligated to pay any transfer
taxes in respect of the Rights or such shares.


 


6.2.          Resignation, Consolidation,
or Merger of Right Agent.


 


6.2.1.          Appointment of Successor
Right Agent. The Right Agent, or any successor to it hereafter appointed, may resign its duties and be discharged from all
further duties and liabilities hereunder after giving sixty (60) days’ notice in writing to the Company. If the office of
the Right Agent becomes vacant by resignation or incapacity to act or otherwise, the Company shall appoint in writing a successor
Right Agent in place of the Right Agent. If the Company shall fail to make such appointment within a period of 30 days after it
has been notified in writing of such resignation or incapacity by the Right Agent or by the holder of the Right (who shall, with
such notice, submit his, her or its Right for inspection by the Company), then the holder of any Right may apply to the Supreme
Court of the State of New York for the County of New York for the appointment of a successor Right Agent at the Company’s
cost. Any successor Right Agent, whether appointed by the Company or by such court, shall be a corporation organized and existing
under the laws of the State of New York, in good standing and having its principal office in the Borough of Manhattan, City and
State of New York, and authorized under such laws to exercise corporate trust powers and subject to supervision or examination
by federal or state authority. After appointment, any successor Right Agent shall be vested with all the authority, powers, rights,
immunities, duties, and obligations of its predecessor Right Agent with like effect as if originally named as Right Agent hereunder,
without any further act or deed; but if for any reason it becomes necessary or appropriate, the predecessor Right Agent shall
execute and deliver, at the expense of the Company, an instrument transferring to such successor Right Agent all the authority,
powers, and rights of such predecessor Right Agent hereunder; and upon request of any successor Right Agent the Company shall
make, execute, acknowledge, and deliver any and all instruments in writing for more fully and effectually vesting in and confirming
to such successor Right Agent all such authority, powers, rights, immunities, duties, and obligations.


 






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6.2.2.          Notice of Successor Right
Agent. In the event a successor Right Agent shall be appointed, the Company shall give notice thereof to the predecessor Right
Agent and the transfer agent for the Ordinary Shares not later than the effective date of any such appointment.


 


6.2.3.          Merger or Consolidation of
Right Agent. Any corporation into which the Right Agent may be merged or with which it may be consolidated or any corporation
resulting from any merger or consolidation to which the Right Agent shall be a party shall be the successor Right Agent under
this Agreement without any further act.


 


6.3.          Fees and Expenses of Right
Agent.


 


6.3.1.          Remuneration. The Company
agrees to pay the Right Agent reasonable remuneration for its services as such Right Agent hereunder and will reimburse the Right
Agent upon demand for all expenditures that the Right Agent may reasonably incur in the execution of its duties hereunder.


 


6.3.2.          Further Assurances. The
Company agrees to perform, execute, acknowledge, and deliver or cause to be performed, executed, acknowledged, and delivered all
such further and other acts, instruments, and assurances as may reasonably be required by the Right Agent for the carrying out
or performing of the provisions of this Agreement.


 


6.4.          Liability of Right Agent.


 


6.4.1.          Reliance on Company Statement.
Whenever in the performance of its duties under this Right Agreement, the Right Agent shall deem it necessary or desirable that
any fact or matter be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter
(unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established
by a statement signed by the President, Chief Executive Officer or Chief Financial Officer and delivered to the Right Agent. The
Right Agent may rely upon such statement for any action taken or suffered in good faith by it pursuant to the provisions of this
Agreement.


 






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6.4.2.          Indemnity. The Right
Agent shall be liable hereunder only for its own gross negligence, willful misconduct or bad faith. The Company agrees to indemnify
the Right Agent and save it harmless against any and all liabilities, including judgments, costs and reasonable counsel fees,
for anything done or omitted by the Right Agent in the execution of this Agreement except as a result of the Right Agent’s
gross negligence, willful misconduct, or bad faith.


 


6.4.3.          Exclusions.
The Right Agent shall have no responsibility with respect to the validity of this Agreement or with respect to the validity
or execution of any Right (except its counter signature thereof); nor shall it be responsible for any breach by the Company
of any covenant or condition contained in this Agreement or in any Right; nor shall it by any act hereunder be deemed to make
any representation or warranty as to the authorization or reservation of any Ordinary Shares to be issued pursuant to this
Agreement or any Right or as to whether any Ordinary Shares will when issued be valid and fully paid and nonassessable.


 


6.5.          Acceptance of Agency. The
Right Agent hereby accepts the agency established by this Agreement and agrees to perform the same upon the terms and conditions
herein set forth.


 


6.6          Waiver. The Right Agent
hereby waives any right of set-off or any other right, title, interest or claim of any kind (“Claim”) in, or to any
distribution of, the Trust Account (as defined in that certain Investment Management Trust Agreement, dated as of the date hereof,
by and between the Company and the Right Agent as trustee thereunder) and hereby agrees not to seek recourse, reimbursement, payment
or satisfaction for any Claim against the Trust Account for any reason whatsoever.


 


7.           Miscellaneous Provisions.


 


7.1.          Successors. All the covenants
and provisions of this Agreement by or for the benefit of the Company or the Right Agent shall bind and inure to the benefit of
their respective successors and assigns.


 






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7.2.          Notices. Any notice, statement
or demand authorized by this Right Agreement to be given or made by the Right Agent or by the holder of any Right to or on the
Company shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail or private
courier service within five days after deposit of such notice, postage prepaid, addressed (until another address is filed in writing
by the Company with the Right Agent), as follows:


 


E-compass Acquisition Corp.


6F/Tower, 2 West Prosper Centre


No.5, Guanghua Road


Chaoyang District


Beijing, 100020, P.R. China


Attn: Chairman and Chief Executive Officer


 


Any notice, statement or demand authorized
by this Agreement to be given or made by the holder of any Right or by the Company to or on the Right Agent shall be sufficiently
given when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within five days
after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Right Agent with the
Company), as follows:


 


Continental Stock Transfer & Trust Company


17 Battery Place


New York, New York 10004


Attn: Robert E. McMonagle


 


with a copy (which shall not constitute notice) in each case to:


 


Graubard Miller


The Chrysler Building


405 Lexington Avenue


New York, New York 10174


Attn: David Alan Miller, Esq.


 


and


 


Loeb & Loeb LLP


345 Park Avenue


New York, New York 10154


Attn: Mitchell S. Nussbaum, Esq.


 


and


 


Cantor Fitzgerald & Co.


499 Park Avenue


New York, New York 10022


Attn: General Counsel and Investment Banking Department


Facsimile: (212) 829-4708


 






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7.3.          Applicable Law. The validity,
interpretation, and performance of this Agreement and of the Rights shall be governed in all respects by the laws of the State
of New York, without giving effect to conflicts of law principles that would result in the application of the substantive laws
of another jurisdiction. The Company hereby agrees that any action, proceeding or claim against it arising out of or relating
in any way to this Agreement shall be brought and enforced in the courts of the State of New York or the United States District
Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive.
The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenience forum.
Any such process or summons to be served upon the Company may be served by transmitting a copy thereof by registered or certified
mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 9.2 hereof. Such mailing
shall be deemed personal service and shall be legal and binding upon the Company in any action, proceeding or claim.


 


7.4.          Persons Having Rights under
this Agreement. Nothing in this Agreement expressed and nothing that may be implied from any of the provisions hereof is intended,
or shall be construed, to confer upon, or give to, any person or corporation other than the parties hereto and the registered
holders of the Rights and, for the purposes of Sections 3, 7.4 and 7.8 hereof, Cantor Fitzgerald, any right, remedy, or claim
under or by reason of this Right Agreement or of any covenant, condition, stipulation, promise, or agreement hereof. Cantor Fitzgerald
shall be deemed to be a third-party beneficiary of this Agreement with respect to Sections 3, 7.4 and 7.8 hereof. All covenants,
conditions, stipulations, promises, and agreements contained in this Right Agreement shall be for the sole and exclusive benefit
of the parties hereto (and Cantor Fitzgerald with respect to the Sections 3, 7.4 and 7.8 hereof) and their successors and assigns
and of the registered holders of the Rights.


 






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7.5.          Examination of the Right Agreement.
A copy of this Agreement shall be available at all reasonable times at the office of the Right Agent in the Borough of Manhattan,
City and State of New York, for inspection by the registered holder of any Right. The Right Agent may require any such holder
to submit his, her or its Right for inspection by it.


 


7.6.          Counterparts. This Agreement
may be executed in any number of original or facsimile counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one and the same instrument.


 


7.7.          Effect of Headings. The
Section headings herein are for convenience only and are not part of this Right Agreement and shall not affect the interpretation
thereof.


 


7.8          Amendments. This Agreement
may be amended by the parties hereto without the consent of any registered holder for the purpose of curing any ambiguity, or
of curing, correcting or supplementing any defective provision contained herein or adding or changing any other provisions with
respect to matters or questions arising under this Agreement as the parties may deem necessary or desirable and that the parties
deem shall not adversely affect the interest of the registered holders. All other modifications or amendments shall require the
written consent or vote of the registered holders of (i) a majority of the then outstanding Public Rights (other than rights held
by the “lead investors” (as defined in the Registration Statement)), and (ii) a majority of the then outstanding Public
Rights held by the lead investors. The provisions of this Section 7.8 may not be modified, amended or deleted without the prior
written consent of Cantor Fitzgerald.


 


7.9          Severability.
This Right Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not
affect the validity or enforceability of this Right Agreement or of any other term or provision hereof. Furthermore, in lieu of
any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Right
Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.


 


[Signature Page Follows]


 






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IN WITNESS WHEREOF, this Agreement has been
duly executed by the parties hereto as of the day and year first above written.


 


	 	E-COMPASS ACQUISITION CORP.
	 	 	 
	 	By:	/s/ Richard Xu
	 	 	Name: Richard Xu
	 	 	Title:   Chief Executive Officer
	 	 	 
	 	CONTINENTAL STOCK TRANSFER
	 	& TRUST COMPANY
	 	 	 
	 	By:	/s/ Robert E. McMonagle
	 	 	Name: Robert E. McMonagle
	 	 	Title:   Vice President


 


 


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