Document:

Blueprint

 

   Exhibit
4.2

 

WARRANT AGREEMENT

 

THIS
WARRANT AGREEMENT (“Agreement”) dated as of
November 20, 2017 is between Big Rock Partners
Acquisition Corp., a Delaware corporation, (“Company”),
and Continental Stock Transfer & Trust Company, a New York
corporation (“Warrant Agent”). 

 

WHEREAS, the
Company has received a binding commitment from its sponsor
("Sponsor") to purchase an aggregate of 250,000 units
(or up to 272,500 units if the underwriters’
over-allotment is exercised in full), each unit
(“Unit”) comprised of one share of common stock of the
Company, $0.001 par value (“Common Stock”), one right
to receive one-tenth of one share of Common Stock and one half of
one warrant to purchase one share of Common Stock for $11.50 per
whole share, subject to adjustment as described herein, pursuant to
a Unit Subscription Agreement (the “Sponsor Unit Purchase
Agreement”), and in connection therewith, will issue and
deliver up to an aggregate of 125,000 warrants (or up
to 136,250 warrants if the underwriters’
over-allotment is exercised in full) (“Placement
Warrants”), upon consummation of such private placement (the
“Private Offering”); and 

 

WHEREAS, in order
to finance the Company’s transaction costs in connection with
an intended initial Business Combination (defined below), the
Sponsor or an affiliate of the Sponsor or the Company’s
executive officers and directors or their affiliates may loan to
the Company funds as may be required, of which up to $1,500,000 of
such loans may be convertible into up to an additional 150,000
Units, including 75,000 warrants ("Working Capital
Warrants");

 

WHEREAS, the
Company is engaged in a public offering (“Public
Offering”) of Units and, in connection therewith, will issue
and deliver up to 3,000,000 warrants (or
up to 3,450,000 warrants if the underwriters’
over-allotment is exercised in full) (“Public
Warrants”) to the public investors and (ii)
300,000 warrants (underlying unit purchase options) to
EBC or its designees (“EBC Warrants” and, together with
the Placement Warrants, Working Capital Warrants and Public
Warrants, the “Warrants”); and 

 

WHEREAS, the
Company has filed with the Securities and Exchange Commission
Registration Statements on Form S-1, Nos.
333-220947 and 333-221659 (“Registration
Statements”) for the registration, under the
Securities Act of 1933, as amended (“Act”), of, among
other securities, the Warrants; and 

 

WHEREAS, the
Company desires the Warrant Agent to act on behalf of the Company,
and the Warrant Agent is willing to so act, in connection with the
issuance, registration, transfer, exchange, redemption and exercise
of the Warrants; and

 

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

 

 WHEREAS, all
acts and things have been done and performed which are necessary to
make the Warrants, when executed on behalf of the Company and
countersigned by or on behalf of the Warrant 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 Warrant Agent. The Company hereby appoints the
Warrant Agent to act as agent for the Company for the Warrants, and
the Warrant Agent hereby accepts such appointment and agrees to
perform the same in accordance with the terms and conditions set
forth in this Agreement.

 

2.           Warrants.

 

2.1.       
Form of Warrant.
Each Warrant 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 of Directors 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 Warrant shall have ceased to
serve in the capacity in which such person signed the Warrant
before such Warrant 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.           Uncertificated
Warrants. Notwithstanding anything herein to the contrary,
any Warrant, or portion thereof, may be issued as part of, and be
represented by, a Unit, and any Warrant may be issued in
uncertificated or book-entry form through the Warrant Agent and/or
the facilities of The Depository Trust Company (the
“Depositary”) or other book-entry depositary system, in
each case as determined by the Board of Directors of the Company or
by an authorized committee thereof. Any Warrant so issued shall
have the same terms, force and effect as a certificated Warrant
that has been duly countersigned by the Warrant Agent in accordance
with the terms of this Agreement.

 

2.3.           Effect
of Countersignature. Except with respect to
uncertificated Warrants as described above, unless and until
countersigned by the Warrant Agent pursuant to this Agreement, a
Warrant shall be invalid and of no effect and may not be exercised
by the holder thereof.

 

2.4.           Registration.

 

2.4.1.       
Warrant Register.
The Warrant Agent shall maintain books (“Warrant
Register”) for the registration of original issuance and the
registration of transfer of the Warrants. Upon the initial issuance
of the Warrants, the Warrant Agent shall issue and register the
Warrants in the names of the respective holders thereof in such
denominations and otherwise in accordance with instructions
delivered to the Warrant Agent by the Company.

 

2.4.2.        
Registered Holder.
Prior to due presentment for registration of transfer of any
Warrant, the Company and the Warrant Agent may deem and treat the
person in whose name such Warrant is then registered in the Warrant
Register (“registered holder”) as the absolute owner of
such Warrant and of each Warrant represented thereby
(notwithstanding any notation of ownership or other writing on the
Warrant certificate made by anyone other than the Company or the
Warrant Agent), for the purpose of any exercise thereof, and for
all other purposes, and neither the Company nor the Warrant Agent
shall be affected by any notice to the contrary.

 

2.5.           Detachability
of Warrants. The securities comprising the Units will not be
separately transferable until the 90th day following
the date of the prospectus or, if such 90th day is not on
a day, other than Saturday, Sunday or federal holiday, on which
banks in New York City are generally open for normal business (a
“Business Day”), then on the immediately succeeding
Business Day following such date, or earlier with the consent of
EBC, but in no event will EBC allow separate trading of the
securities comprising the Units until (i) the Company has filed 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 underwriters’ over-allotment option in
the Public Offering, if the over-allotment option is exercised
prior to the filing of the Form 8-K, and (ii) the Company has
issued a press release and has filed a Current Report on Form 8-K
announcing when such separate trading shall begin (the
“Detachment Date”).

 

2.6.           Placement
Warrants Attributes. The Placement Warrants will be issued
in the same form as the Public Warrants but they (i) will not be
redeemable by the Company and (ii) may be exercised for cash or on
a cashless basis at the holder’s option, in either case as
long as the Placement Warrants are held by the initial purchasers
or their affiliates and permitted transferees (as prescribed in
Section 5.6 hereof). Once a Placement Warrant is transferred to a
holder other than an affiliate or permitted transferee, it shall be
treated as a Public Warrant hereunder for all
purposes.

 

2.7.         
EBC Warrants. The
EBC Warrants shall be exercisable only upon the exercise of the
purchase options issued to EBC and/or its designees and shall have
the same terms and be in the same form as the Public Warrants. The
provisions of this Section 2.7 may not be modified, amended or
deleted without the prior written consent of EBC.

 

2.8   
       Working Capital Warrants. The
Working Capital Warrants shall have the same terms and be in the
same form as the Placement Warrants.

 

3.           Terms
and Exercise of Warrants

 

3.1.
       Warrant Price. Each whole
Warrant shall, when countersigned by the Warrant Agent, entitle the
registered holder thereof, subject to the provisions of such
Warrant and of this Agreement, to purchase from the Company the
number of shares of Common Stock stated therein, at the price of
$11.50 per share, subject to the adjustments provided in Section 4
hereof and in the last sentence of this Section 3.1. The term
“Warrant Price” as used in this Agreement refers to the
price per share at which the shares of Common Stock may be
purchased at the time a Warrant is exercised. The Company in its
sole discretion may lower the Warrant Price at any time prior to
the Expiration Date (as defined below) for a period of not less
than twenty (20) Business Days; provided, that the Company shall
provide at least twenty (20) days prior written notice of such
reduction to registered holders of the Warrants and, provided
further that any such reduction shall be applied consistently to
all of the Warrants.

 

 

 

2

 

 

 

3.2.           Duration
of Warrants. A Warrant may be exercised only during the
period (“Exercise Period”) commencing on the later the
consummation by the Company of a merger, share exchange, asset
acquisition, stock purchase, recapitalization, reorganization or
other similar business combination with one or more businesses or
entities (“Business Combination”) (as described more
fully in the Registration Statement) or 12 months from the closing
of the Public Offering, and terminating at 5:00 p.m., New York City
time on the earlier to occur of (i) five years from the
consummation of a Business Combination and (ii) the Redemption Date
as provided in Section 6.2 of this Agreement (“Expiration
Date”). The period of time from the date the Warrants will
first become exercisable until the expiration of the Warrants shall
hereafter be referred to as the “Exercise Period.”
Except with respect to the right to receive the Redemption Price
(as set forth in Section 6 hereunder), each Warrant not exercised
on or before the Expiration Date shall become void, and all rights
thereunder and all rights in respect thereof under this Agreement
shall cease at the close of business on the Expiration
Date. The Company in its sole discretion may extend the
duration of the Warrants by delaying the Expiration Date; provided,
however, that the Company will provide at least twenty (20) days
prior written notice of any such extension to registered holders
and, provided further that any such extension shall be applied
consistently to all of the Warrants.

 

3.3.           Exercise
of Warrants.

 

3.3.1.       
Payment. Subject to the
provisions of the Warrant and this Agreement, a Warrant, when
countersigned by the Warrant Agent, may be exercised by the
registered holder thereof by surrendering it, at the office of the
Warrant Agent, or at the office of its successor as Warrant Agent,
in the Borough of Manhattan, City and State of New York, with the
subscription form, as set forth in the Warrant, duly executed, and
by paying in full the Warrant Price for each share of Common Stock
as to which the Warrant is exercised and any and all applicable
taxes due in connection with the exercise of the Warrant, as
follows:

 

(a)            

by good certified
check or good bank draft payable to the order of the Warrant Agent
(or as otherwise agreed to by the Company); or

 

(b)            

in the event of
redemption pursuant to Section 6 hereof in which the
Company’s management has elected to force all holders of
Warrants to exercise such Warrants on a “cashless
basis,” by surrendering the Warrants for that number of
shares of Common Stock equal to the quotient obtained by dividing
(x) the product of the number of shares of Common Stock underlying
the Warrants, multiplied by the difference between the Warrant
Price and the “Fair Market Value” (defined below) by
(y) the Fair Market Value. Solely for purposes of this Section
3.3.1(b), the “Fair Market Value” shall mean the
average reported last sale price of the Common Stock for the five
(5) trading days ending on the third trading day prior to the date
on which the notice of redemption is sent to holders of the
Warrants pursuant to Section 6 hereof; or

 

(c)            

with respect to any
Placement Warrants or Working Capital
Warrants , so long as such Placement Warrants or Working
Capital Warrants are held by the initial purchasers of the
Placement Warrants or their permitted transferees, by surrendering
such Placement Warrants or Working Capital
Warrants for that number of shares of Common Stock equal to
the quotient obtained by dividing (x) the product of the number of
shares of Common Stock underlying the Warrants, multiplied by the
difference between the exercise price of the Warrants and the
“Fair Market Value” by (y) the Fair Market Value;
provided, however, that no cashless exercise shall be permitted
unless the Fair Market Value is equal to or higher than the
exercise price. Solely for purposes of this Section 3.3.1(c), the
“Fair Market Value” shall mean the average reported
last sale price of the Common Stock for the five (5) trading days
ending on the third trading day prior to the date of exercise;
or

 

(d)            

in the event the
registration statement required by Section 7.4 hereof is not
effective and current within ninety (90) days after the closing of
a Business Combination, by surrendering such Warrants for that
number of shares of Common Stock equal to the quotient obtained by
dividing (x) the product of the number of shares of Common Stock
underlying the Warrants, multiplied by the difference between the
exercise price of the Warrants and the “Fair Market
Value” by (y) the Fair Market Value; provided, however, that
no cashless exercise shall be permitted unless the Fair Market
Value is equal to or higher than the exercise price. Solely for
purposes of this Section 3.3.1(d), the “Fair Market
Value” shall mean the average reported last sale price of the
Common Stock for the five (5) trading days ending on the day prior
to the date of exercise.

 

3.3.2.           Issuance
of Certificates. As soon as practicable after the
exercise of any Warrant and the clearance of the funds in payment
of the Warrant Price (if any), the Company shall issue to the
registered holder of such Warrant a certificate or certificates for
the number of shares of Common Stock to which he, she or it is
entitled, registered in such name or names as may be directed by
him, her or it, and if such Warrant shall not have been exercised
in full, a new countersigned Warrant for the number of shares as to
which such Warrant shall not have been
exercised. Notwithstanding the foregoing, in no event will the
Company be required to net cash settle the Warrant exercise. No
Warrant shall be exercisable and the Company shall not be obligated
to issue shares of Common Stock upon exercise of a Warrant unless
the Common Stock issuable upon such Warrant exercise has been
registered, qualified or deemed to be exempt under the securities
laws of the state of residence of the registered holder of the
Warrants. In the event that the condition in the immediately
preceding sentence is not satisfied with respect to a Warrant, the
holder of such Warrant shall not be entitled to exercise such
Warrant and such Warrant may have no value and expire worthless, in
which case the purchaser of a Unit containing such Public Warrants
shall have paid the full purchase price for the Unit solely for the
shares of Common Stock and rights to receive shares of Common Stock
underlying such Unit. Warrants may not be exercised by, or
securities issued to, any registered holder in any state in which
such exercise would be unlawful.

 

 

 

3

 

 

 

3.3.3.        
Valid
Issuance. All shares of Common Stock issued upon the
proper exercise of a Warrant in conformity with this Agreement
shall be validly issued, fully paid and nonassessable.

 

3.3.4.        
Date of
Issuance. Each person in whose name any such
certificate for shares of Common Stock is issued shall for all
purposes be deemed to have become the holder of record of such
shares on the date on which the Warrant was surrendered and payment
of the Warrant Price was made, irrespective of the date of delivery
of such certificate, except that, if the date of such surrender and
payment is a date when the share transfer books of the Company are
closed, such person shall be deemed to have become the holder of
such shares at the close of business on the next succeeding date on
which the share transfer books are open.

 

3.3.5.        
Maximum
Percentage. A holder of a Warrant may notify the
Company in writing in the event it elects to be subject to the
provisions contained in this subsection 3.3.5; however, no holder
of a Warrant shall be subject to this subsection 3.3.5 unless he,
she or it makes such election. If the election is made by a holder,
the Warrant Agent shall not effect the exercise of the
holder’s Warrant, and such holder shall not have the right to
exercise such Warrant, to the extent that after giving effect to
such exercise, such person (together with such person’s
affiliates), to the Warrant Agent’s actual knowledge, would
beneficially own in excess of 9.8% (the “Maximum
Percentage”) of the shares of Common Stock outstanding
immediately after giving effect to such exercise. For purposes of
the foregoing sentence, the aggregate number of shares of Common
Stock beneficially owned by such person and its affiliates shall
include the number of shares of Common Stock issuable upon exercise
of the Warrant with respect to which the determination of such
sentence is being made, but shall exclude shares of Common Stock
that would be issuable upon (x) exercise of the remaining,
unexercised portion of the Warrant beneficially owned by such
person and its affiliates and (y) exercise or conversion of the
unexercised or unconverted portion of any other securities of the
Company beneficially owned by such person and its affiliates
(including, without limitation, any convertible notes or
convertible preferred stock or warrants) subject to a limitation on
conversion or exercise analogous to the limitation contained
herein. Except as set forth in the preceding sentence, for purposes
of this paragraph, beneficial ownership shall be calculated in
accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”). For purposes of
the Warrant, in determining the number of outstanding shares of
Common Stock, the holder may rely on the number of outstanding
shares of Common Stock as reflected in (1) the Company’s most
recent annual report on Form 10-K, quarterly report on Form 10-Q,
current report on Form 8-K or other public filing with the
Securities and Exchange Commission as the case may be, (2) a more
recent public announcement by the Company or (3) any other notice
by the Company or Warrant Agent setting forth the number of shares
of Common Stock outstanding. For any reason at any time, upon the
written request of the holder of the Warrant, the Company shall,
within two (2) Business Days, confirm orally and in writing to such
holder the number of shares of Common Stock then outstanding. In
any case, the number of outstanding shares of Common Stock shall be
determined after giving effect to the conversion or exercise of
equity securities of the Company by the holder and its affiliates
since the date as of which such number of outstanding shares of
Common Stock was reported. By written notice to the Company, the
holder of a Warrant may from time to time increase or decrease the
Maximum Percentage applicable to such holder to any other
percentage specified in such notice; provided, however, that any
such increase shall not be effective until the sixty-first (61st)
day after such notice is delivered to the Company.

 

4.         
    Adjustments.

 

4.1.           Stock
Dividends; Split Ups. If after the date hereof, the
number of outstanding shares of Common Stock is increased by a
stock dividend payable in shares of Common Stock, or by a split up
of shares of Common Stock, or other similar event, then, on the
effective date of such stock dividend, split up or similar event,
the number of shares of Common Stock issuable on exercise of each
Warrant shall be increased in proportion to such increase in
outstanding shares of Common Stock.

 

4.2.           Aggregation
of Shares. If after the date hereof, the number of
outstanding shares of Common Stock is decreased by a consolidation,
combination, reverse stock split or reclassification of shares of
Common Stock or other similar event, then, on the effective date of
such consolidation, combination, reverse stock split,
reclassification or similar event, the number of shares of Common
Stock issuable on exercise of each Warrant shall be decreased in
proportion to such decrease in outstanding shares of Common
Stock.

 

4.3.           Extraordinary
Dividends. If the Company, at any time while the Warrants
are outstanding and unexpired, shall pay a dividend or make a
distribution in cash, securities or other assets to the holders of
the shares of Common Stock or other shares of the Company’s
capital stock into which the Warrants are convertible (an
“Extraordinary Dividend”), then the Warrant Price shall
be decreased, effective immediately after the effective date of
such Extraordinary Dividend, by the amount of cash and the fair
market value (as determined by the Company’s Board of
Directors, in good faith) of any securities or other assets paid on
each share of Common Stock in respect of such Extraordinary
Dividend; provided, however, that none of the following shall be
deemed an Extraordinary Dividend for purposes of this provision:
(a) any adjustment described in subsection 4.1 above, (b) any cash
dividends or cash distributions which, when combined on a per share
basis with all other cash dividends and cash distributions paid on
the Common Stock during the 365-day period ending on the date of
declaration of such dividend or distribution does not exceed $0.50
(as adjusted to appropriately reflect any of the events referred to
in other subsections of this Section 4 and excluding cash dividends
or cash distributions that resulted in an adjustment to the Warrant
Price or to the number of shares of Common Stock issuable on
exercise of each Warrant) but only with respect to the amount of
the aggregate cash dividends or cash distributions equal to or less
than $0.50, (c) any payment to satisfy the conversion rights of the
holders of the shares of Common Stock in connection with a proposed
initial Business Combination or (d) any payment in connection with
the Company’s liquidation and the distribution of its assets
upon its failure to consummate a Business Combination. Solely for
purposes of illustration, if the Company, at a time while the
Warrants are outstanding and unexpired, pays a cash dividend of
$0.35 and previously paid an aggregate of $0.40 of cash dividends
and cash distributions on the Common Stock during the 365-day
period ending on the date of declaration of such $0.35 dividend,
then the Warrant Price will be decreased, effectively immediately
after the effective date of such $0.35 dividend, by $0.25 (the
absolute value of the difference between $0.75 (the aggregate
amount of all cash dividends and cash distributions paid or made in
such 365-day period, including such $0.35 dividend) and $0.50 (the
greater of (x) $0.50 and (y) the aggregate amount of all cash
dividends and cash distributions paid or made in such 365-day
period prior to such $0.35 dividend)).

 

 

 

4

 

 

 

4.4.           Adjustments
in Exercise Price. Whenever the number of shares of
Common Stock purchasable upon the exercise of the Warrants is
adjusted, as provided in Sections 4.1 and 4.2 above, the Warrant
Price shall be adjusted (to the nearest cent) by multiplying such
Warrant Price immediately prior to such adjustment by a fraction
(x) the numerator of which shall be the number of shares of Common
Stock purchasable upon the exercise of the Warrants immediately
prior to such adjustment, and (y) the denominator of which shall be
the number of shares of Common Stock so purchasable immediately
thereafter.

 

4.5.           Replacement
of Securities upon Reorganization, etc. In case of any
reclassification or reorganization of the outstanding shares of
Common Stock (other than a change covered by Section 4.1, 4.2 or
4.3 hereof or that solely affects the par value of the Common
Stock), or in the case of any merger or consolidation of the
Company with or into another corporation (other than a
consolidation or merger in which the Company is the continuing
corporation and that does not result in any reclassification or
reorganization of the outstanding Common Stock), or in the case of
any sale or conveyance to another corporation or entity of the
assets or other property of the Company as an entirety or
substantially as an entirety in connection with which the Company
is dissolved, the Warrant holders shall thereafter have the right
to purchase and receive, upon the basis and upon the terms and
conditions specified in the Warrants and in lieu of the shares of
Common Stock of the Company immediately theretofore purchasable and
receivable upon the exercise of the rights represented thereby, the
kind and amount of shares of stock or other securities or property
(including cash) receivable upon such reclassification,
reorganization, merger or consolidation, or upon a dissolution
following any such sale or transfer, that the Warrant holder would
have received if such Warrant holder had exercised his, her or its
Warrant(s) immediately prior to such event; and if any
reclassification also results in a change in the Common Stock
covered by Section 4.1, 4.2 or 4.3, then such adjustment shall be
made pursuant to Sections 4.1, 4.2, 4.3, 4.4 and this Section
4.5. The provisions of this Section 4.5 shall similarly apply
to successive reclassifications, reorganizations, mergers or
consolidations, sales or other transfers.

 

4.6.           Notices
of Changes in Warrant. Upon every adjustment of the
Warrant Price or the number of shares issuable upon exercise of a
Warrant, the Company shall give written notice thereof to the
Warrant Agent, which notice shall state the Warrant Price resulting
from such adjustment and the increase or decrease, if any, in the
number of shares purchasable at such price upon the exercise of a
Warrant, setting forth in reasonable detail the method of
calculation and the facts upon which such calculation is
based. Upon the occurrence of any event specified in Sections
4.1, 4.2, 4.3, 4.4 or 4.5, then, in any such event, the Company
shall give written notice to each Warrant holder, at the last
address set forth for such holder in the Warrant Register, of the
record date or the effective date of the event. Failure to
give such notice, or any defect therein, shall not affect the
legality or validity of such event.

 

4.7.           No
Fractional Warrants or Shares. No fractional Warrants
will be issued hereunder. Additionally, notwithstanding any
provision contained in this Agreement to the contrary, the Company
shall not issue fractional shares upon exercise of
Warrants. If, by reason of any adjustment made pursuant to
this Section 4, the holder of any Warrant would be entitled, upon
the exercise of such Warrant, to receive a fractional interest in a
share, the Company shall, upon such exercise, round up to the
nearest whole number of shares of Common Stock to be issued to the
Warrant holder.

 

4.8.           Form
of Warrant. The form of Warrant need not be changed
because of any adjustment pursuant to this Section 4, and Warrants
issued after such adjustment may state the same Warrant Price and
the same number of shares as is stated in the Warrants initially
issued pursuant to this Agreement. However, the Company may at
any time in its sole discretion make any change in the form of
Warrant that the Company may deem appropriate and that does not
affect the substance thereof, and any Warrant thereafter issued or
countersigned, whether in exchange or substitution for an
outstanding Warrant or otherwise, may be in the form as so
changed.

 

4.9.           Other
Events. In case any event shall occur affecting the Company
as to which none of the provisions of preceding subsections of this
Section 4 are strictly applicable, but which would require an
adjustment to the terms of the Warrants in order to (i) avoid an
adverse impact on the Warrants and (ii) effectuate the intent and
purpose of this Section 4, then, in each such case, the Company
shall appoint a firm of independent public accountants, investment
banking or other appraisal firm of recognized national standing,
which shall give its opinion as to whether or not any adjustment to
the rights represented by the Warrants is necessary to effectuate
the intent and purpose of this Section 4 and, if they determine
that an adjustment is necessary, the terms of such adjustment,
provided, however, that under no circumstances shall the Warrants
be adjusted pursuant to this Section 4 as a result of any issuance
of securities in connection with the Business Combination. The
Company shall adjust the terms of the Warrants in a manner that is
consistent with any adjustment recommended in such
opinion.

 

 

 

5

 

 

 

5.        
    Transfer and Exchange of
Warrants.

 

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

 

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

 

5.3.           Fractional
Warrants. The Warrant Agent shall not be required to
effect any registration of transfer or exchange which will result
in the issuance of a warrant certificate for a fraction of a
warrant.

 

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

 

5.5.           Warrant
Execution and Countersignature. The Warrant Agent is
hereby authorized to countersign and to deliver, in accordance with
the terms of this Agreement, the Warrants required to be issued
pursuant to the provisions of this Section 5, and the Company,
whenever required by the Warrant Agent, will supply the Warrant
Agent with Warrants duly executed on behalf of the Company for such
purpose.

 

5.6.           Placement
Warrants. The Warrant Agent shall not register any transfer
of Placement Warrants until the consummation by the Company of an
initial Business Combination, except for transfers (i) to the
Company’s Sponsor, officers, directors, employees,
consultants or their affiliates, (ii) to a holder’s officers,
directors, employees or members, in each case if the holder is an
entity, (iii) by bona fide gift to a member of the holder’s
immediate family or to a trust, the beneficiary of which is the
holder or a member of the holder’s immediate family for
estate planning purposes, (iv) by virtue of the laws of descent and
distribution upon death, (v) pursuant to a qualified domestic
relations order, (vi) to the Company for no value for cancellation
in connection with the consummation of a Business Combination or
(vii) by private sales made at or prior to the consummation of a
Business Combination at prices no greater than the price at which
the Placement Warrants were originally purchased, in each case
(except for clause (vi)) on the condition that prior to such
registration for transfer, the Warrant Agent shall be presented
with written documentation pursuant to which each transferee or the
trustee or legal guardian for such transferee agrees to be bound by
the terms of the Unit Purchase Agreements and any other applicable
agreement the transferor is bound by.

 

5.7.           Transfers
prior to Detachment. Prior to the Detachment Date, the
Public Warrants may be transferred or exchanged only together with
the Unit in which such Warrant is included, and only for the
purpose of effecting, or in conjunction with, a transfer or
exchange of such Unit. Furthermore, each transfer of a Unit on
the register relating to such Units shall operate also to transfer
the Warrants included in such Unit. Notwithstanding the
foregoing, the provisions of this Section 5.7 shall have no effect
on any transfer of Warrants on or after the Detachment
Date.

 

6.       
      Redemption.

 

6.1.           Redemption. Subject
to Section 6.4 hereof, not less than all of the outstanding Public
Warrants may be redeemed, at the option of the Company, at any time
during the Exercise Period (so long as there is a current
registration statement in effect with respect to the shares of
Common Stock underlying the Warrants), at the office of the Warrant
Agent, upon the notice referred to in Section 6.2, at the price of
$0.01 per Warrant (“Redemption Price”), provided that
the last sales price of the Common Stock equals or exceeds $21.00
per share (subject to adjustment in accordance with Section 4
hereof), for any twenty (20) trading days within a thirty (30)
trading day period ending on the third business day prior to the
notice of redemption.

 

 

 

6

 

 

 

6.2.           Date
Fixed for, and Notice of, Redemption. In the event the
Company shall elect to redeem all of the Public Warrants, the
Company shall fix a date for the redemption (the “Redemption
Date”). Notice of redemption shall be mailed by first class
mail, postage prepaid, by the Company not less than thirty (30)
days prior to the Redemption Date to the registered holders of the
Warrants to be redeemed at their last addresses as they shall
appear on the registration books. Any notice mailed in the manner
herein provided shall be conclusively presumed to have been duly
given whether or not the registered holder received such
notice.

 

6.3.           Exercise
After Notice of Redemption. The Public Warrants may be
exercised, for cash (or on a “cashless basis” in
accordance with Section 3 of this Agreement) at any time after
notice of redemption shall have been given by the Company pursuant
to Section 6.2 hereof and prior to the Redemption Date. In the
event the Company determines to require all holders of Public
Warrants to exercise their Warrants on a “cashless
basis” pursuant to Section 3.3.1(b), the notice of redemption
will contain the information necessary to calculate the number of
shares of Common Stock to be received upon exercise of the
Warrants, including the “Fair Market Value” in such
case. On and after the Redemption Date, the record holder of the
Warrants shall have no further rights except to receive, upon
surrender of the Warrants, the Redemption Price.

 

6.4
           Exclusion of Certain Warrants.
The Company agrees that the redemption rights provided in this
Section 6 shall apply only to outstanding warrants. To the extent a
person holds rights to purchase warrants, such purchase rights
shall not be extinguished by redemption. However, once such
purchase rights are expired the Company may redeem the warrants
issued upon such exercise provided that the criteria for redemption
is met. Additionally, the Company agrees that the redemption rate
shall not apply to the Placement Warrants if at the time of the
redemption such Placement Warrants continue to be held by the
initial purchasers or their permitted transferees. However, once
such Placement Warrants are transferred (other than to permitted
transferees under Section 5.6), the Company may redeem the
Placement Warrants in the same manner as the Public Warrants. The
EBC Warrants shall not be redeemable until after the exercise of
the purchase option issued to EBC. The provisions of this Section
6.4 may not be modified, amended or deleted without the prior
written consent of EBC.

 

7.      
       Other Provisions Relating to Rights of
Holders of Warrants.

 

7.1.           No
Rights as Stockholder. A Warrant does not entitle the
registered holder thereof to any of the rights of a stockholder 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 stockholders in
respect of the meetings of stockholders or the election of
directors of the Company or any other matter.

 

7.2.           Lost,
Stolen, Mutilated, or Destroyed Warrants. If any
Warrant is lost, stolen, mutilated, or destroyed, the Company and
the Warrant 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 Warrant, include the surrender thereof), issue a new
Warrant of like denomination, tenor, and date as the Warrant so
lost, stolen, mutilated, or destroyed. Any such new Warrant
shall constitute a substitute contractual obligation of the
Company, whether or not the allegedly lost, stolen, mutilated, or
destroyed Warrant shall be at any time enforceable by
anyone.

 

7.3.           Reservation
of Shares of Common Stock. The Company shall at all
times reserve and keep available a number of its authorized but
unissued shares of Common Stock that will be sufficient to permit
the exercise in full of all outstanding Warrants issued pursuant to
this Agreement.

 

7.4.           Registration
of Shares of Common Stock. The Company agrees that as
soon as practicable after the closing of its initial Business
Combination, but in no event later than fifteen (15) business days
after such closing, it shall use its best efforts to file with the
Securities and Exchange Commission a registration statement for the
registration, under the Act, of the shares of Common Stock issuable
upon exercise of the Warrants, and it shall use its best efforts to
take such action as is necessary to register or qualify for sale,
in those states in which the Warrants were initially offered by the
Company and in those states where holders of Warrants then reside,
the shares of Common Stock issuable upon exercise of the Warrants,
to the extent an exemption is not available. The Company will
use its best efforts to cause the same to become effective and to
maintain the effectiveness of such registration statement until the
expiration of the Warrants in accordance with the provisions of
this Agreement. If any such registration statement has not
been declared effective by the 90th day following the closing of
the Business Combination, holders of the Warrants shall have the
right, during the period beginning on the 91st day after the
closing of the Business Combination and ending upon such
registration statement being declared effective by the Securities
and Exchange Commission, and during any other period when the
Company shall fail to have maintained an effective registration
statement covering the shares of Common Stock issuable upon
exercise of the Warrants, to exercise such Warrants on a
“cashless basis” as determined in accordance with
Section 3.3.1(d). The Company shall provide the Warrant Agent with
an opinion of counsel for the Company (which shall be an outside
law firm with securities law experience) stating that (i) the
exercise of the Warrants on a cashless basis in accordance with
this Section 7.4 is not required to be registered under the Act and
(ii) the shares of Common Stock issued upon such exercise will be
freely tradable under U.S. federal securities laws by anyone who is
not an affiliate (as such term is defined in Rule 144 under the
Act) of the Company and, accordingly, will not be required to bear
a restrictive legend. For the avoidance of any doubt, unless
and until all of the Warrants have been exercised on a cashless
basis, the Company shall continue to be obligated to comply with
its registration obligations under the first three sentences of
this Section 7.4. The provisions of this Section 7.4 may not be
modified, amended or deleted without the prior written consent of
EBC.

 

 

 

7

 

 

 

8.         
    Concerning
the Warrant Agent and Other Matters.

 

8.1.           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 Warrant Agent in respect of the issuance or delivery of shares
of Common Stock upon the exercise of Warrants, but the Company
shall not be obligated to pay any transfer taxes in respect of the
Warrants or such shares.

 

8.2.           Resignation,
Consolidation, or Merger of Warrant Agent.

 

8.2.1.       
Appointment of Successor
Warrant Agent. The Warrant 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 Warrant Agent becomes vacant by resignation or incapacity to
act or otherwise, the Company shall appoint in writing a successor
Warrant Agent in place of the Warrant Agent. If the Company shall
fail to make such appointment within a period of thirty (30) days
after it has been notified in writing of such resignation or
incapacity by the Warrant Agent or by the holder of the Warrant
(who shall, with such notice, submit his Warrant for inspection by
the Company), then the holder of any Warrant may apply to the
Supreme Court of the State of New York for the County of New York
for the appointment of a successor Warrant Agent at the
Company’s cost. Any successor Warrant 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 Warrant Agent shall be vested with all
the authority, powers, rights, immunities, duties, and obligations
of its predecessor Warrant Agent with like effect as if originally
named as Warrant Agent hereunder, without any further act or deed;
but if for any reason it becomes necessary or appropriate, the
predecessor Warrant Agent shall execute and deliver, at the expense
of the Company, an instrument transferring to such successor
Warrant Agent all the authority, powers, and rights of such
predecessor Warrant Agent hereunder; and upon request of any
successor Warrant 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 Warrant Agent all such authority, powers, rights,
immunities, duties, and obligations.

 

8.2.2.        
Notice of Successor
Warrant Agent. In the event a successor Warrant Agent
shall be appointed, the Company shall give notice thereof to the
predecessor Warrant Agent and the transfer agent for the shares of
Common Stock not later than the effective date of any such
appointment.

 

8.2.3.        
Merger or Consolidation of
Warrant Agent. Any corporation into which the Warrant
Agent may be merged or with which it may be consolidated or any
corporation resulting from any merger or consolidation to which the
Warrant Agent shall be a party shall be the successor Warrant Agent
under this Agreement without any further act.

 

8.3.      
     Fees
and Expenses of Warrant Agent.

 

8.3.1.        
Remuneration. The Company
agrees to pay the Warrant Agent reasonable remuneration for its
services as such Warrant Agent hereunder and will reimburse the
Warrant Agent upon demand for all expenditures that the Warrant
Agent may reasonably incur in the execution of its duties
hereunder.

 

8.3.2.        
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
Warrant Agent for the carrying out or performing of the provisions
of this Agreement.

 

8.4.        
   Liability of
Warrant Agent.

 

8.4.1.        
Reliance on Company
Statement. Whenever in the performance of its duties
under this Agreement, the Warrant 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 Chief Executive
Officer or Chairman of the Board of Directors of the Company and
delivered to the Warrant Agent. The Warrant Agent may rely
upon such statement for any action taken or suffered in good faith
by it pursuant to the provisions of this Agreement.

 

8.4.2.        
Indemnity. The
Warrant Agent shall be liable hereunder only for its own gross
negligence, willful misconduct or bad faith. The Company agrees to
indemnify the Warrant Agent and save it harmless against any and
all liabilities, including judgments, costs and reasonable counsel
fees, for anything done or omitted by the Warrant Agent in the
execution of this Agreement except as a result of the Warrant
Agent’s gross negligence, willful misconduct, or bad
faith.

 

 

 

8

 

 

 

8.4.3.    
    Exclusions. The Warrant
Agent shall have no responsibility with respect to the validity of
this Agreement or with respect to the validity or execution of any
Warrant (except its countersignature thereof); nor shall it be
responsible for any breach by the Company of any covenant or
condition contained in this Agreement or in any Warrant; nor shall
it be responsible to make any adjustments required under the
provisions of Section 4 hereof or responsible for the manner,
method, or amount of any such adjustment or the ascertaining of the
existence of facts that would require any such adjustment; nor
shall it by any act hereunder be deemed to make any representation
or warranty as to the authorization or reservation of any shares of
Common Stock to be issued pursuant to this Agreement or any Warrant
or as to whether any shares of Common Stock will, when issued, be
valid and fully paid and nonassessable.

 

8.5.       
    Acceptance
of Agency. The Warrant Agent hereby accepts the agency
established by this Agreement and agrees to perform the same upon
the terms and conditions herein set forth and among other things,
shall account promptly to the Company with respect to Warrants
exercised and concurrently account for, and pay to the Company, all
monies received by the Warrant Agent for the purchase of shares of
Common Stock through the exercise of Warrants.

 

9.      
        Miscellaneous
Provisions.

 

9.1.       
    Successors. All the
covenants and provisions of this Agreement by or for the benefit of
the Company or the Warrant Agent shall bind and inure to the
benefit of their respective successors and assigns.

 

9.2.      
     Notices. Any notice,
statement or demand authorized by this Agreement to be given or
made by the Warrant Agent or by the holder of any Warrant 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 (5) days after deposit of such notice,
postage prepaid, addressed (until another address is filed in
writing by the Company with the Warrant Agent), as
follows:

 

Big
Rock Partners Acquisition Corp.

c/o Big
Rock Partners Sponsor, LLC

2645 N.
Federal Highway

Suite
230

Delray
Beach, FL 33483

Attn: Chief
Executive Officer

 

Any
notice, statement or demand authorized by this Agreement to be
given or made by the holder of any Warrant or by the Company to or
on the Warrant 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 Warrant Agent with the Company), as
follows:

 

Continental Stock
Transfer & Trust Company

1 State
Street, 30th Floor

New
York, NY 10004-1561

Attn: Compliance
Department

 

with a
copy in each case to:

 

Graubard
Miller

The
Chrysler Building

405
Lexington Avenue

New
York, New York 10174

Attn: David
Alan Miller, Esq.

 

and

 

Akerman
LLP

Three
Brickell City Centre

98
Southeast 7th
Street,

Suite
1100

Miami,
FL 33131

Attn: Michael
Francis, Esq.

 

and

 

EarlyBirdCapital,
Inc.

366
Madison Avenue, 8th Floor

New
York, New York 10017

Attn: General
Counsel

 

 

 

9

 

 

 

9.3.           Applicable
Law. The validity, interpretation, and performance of
this Agreement and of the Warrants 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 inconvenient 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.

 

9.4.           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 Warrants and, for the
purposes of Sections 2.7, 6.4, 7.4, 9.4 and 9.8 hereof, EBC, any
right, remedy, or claim under or by reason of this Agreement or of
any covenant, condition, stipulation, promise, or agreement
hereof. EBC shall be deemed to be a third-party beneficiary of
this Agreement with respect to Sections 2.7, 6.4, 7.4, 9.4 and 9.8
hereof. All covenants, conditions, stipulations, promises, and
agreements contained in this Agreement shall be for the sole and
exclusive benefit of the parties hereto (and EBC with respect to
the Sections 2.7, 6.4, 7.4, 9.4 and 9.8 hereof) and their
successors and assigns and of the registered holders of the
Warrants.

 

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

 

9.6.           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.

 

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

 

9.8.           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, including any
amendment to increase the Warrant Price or shorten the Exercise
Period, shall require the written consent or vote of the registered
holders of a majority of the then outstanding
Warrants. Notwithstanding the foregoing, the Company may lower
the Warrant Price or extend the duration of the Exercise Period
pursuant to Sections 3.1 and 3.2, respectively, without the consent
of the registered holders. The provisions of this Section 9.8 may
not be modified, amended or deleted without the prior written
consent of EBC.

 

9.9
          Trust Account Waiver. The
Warrant Agent acknowledges and agrees that it shall not make any
claims or proceed against the trust account established by the
Company in connection with the Public Offering (as more fully
described in the Registration Statements)
(“Trust Account”), including by way of set-off, and
shall not be entitled to any funds in the Trust Account under any
circumstance. In the event that the Warrant Agent has a claim
against the Company under this Agreement, the Warrant Agent will
pursue such claim solely against the Company and not against the
property held in the Trust Account. 

 

9.10
        Severability. This 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 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 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]

 

 

 

10

 

 

 

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

 

 

	
 

	

BIG
ROCK PARTNERS ACQUISITION CORP.

	
 

	
 

	
 

	
 

	

By:

	
/s/ Richard
Ackerman

	
 

	
 

	

Name:
Richard Ackerman

	
 

	
 

	

Title:
President and Chief Executive
Officer

  

  

	
 

	

CONTINENTAL
STOCK TRANSFER & TRUST COMPANY

	
 

	
 

	
 

	
 

	

By:

	
/s/ Stacy
Aqui

	
 

	
 

	

Name:
Stacy Aqui

	
 

	
 

	

Title:
Vice President

 

 

 

 11Blueprint

 

Exhibit
4.3

 

THE
REGISTERED HOLDER OF THIS PURCHASE OPTION BY ITS ACCEPTANCE HEREOF,
AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE
OPTION EXCEPT AS HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS
PURCHASE OPTION AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN,
PLEDGE OR HYPOTHECATE THIS PURCHASE OPTION FOR A PERIOD OF 180 DAYS
FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER THAN
(I) EARLYBIRDCAPITAL, INC. (“EBC”)
OR AN UNDERWRITER OR SELECTED DEALER IN CONNECTION WITH THE
OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF EBC OR OF ANY
SUCH UNDERWRITER OR SELECTED DEALER, EXCEPT IN ACCORDANCE WITH
FINRA RULE 5110(G)(2). ADDITIONALLY, PURSUANT TO FINRA CONDUCT RULE
5110(G), THE PURCHASE OPTION (OR THE COMMON STOCK, RIGHTS AND
WARRANTS UNDERLYING THIS PURCHASE OPTION) WILL NOT BE THE SUBJECT
OF ANY HEDGING, SHORT SALE, DERIVATIVE, PUT OR CALL TRANSACTION
THAT WOULD RESULT IN THE ECONOMIC DISPOSITION OF THE SECURITIES BY
ANY PERSON FOR A PERIOD OF 180 DAYS IMMEDIATELY FOLLOWING THE
EFFECTIVE DATE.

 

THIS
PURCHASE OPTION IS NOT EXERCISABLE PRIOR TO THE LATER OF THE
CONSUMMATION BY BIG ROCK PARTNERS ACQUISITION CORP.
(“COMPANY”)
OF A MERGER, SHARE EXCHANGE, ASSET ACQUISITION, SHARE PURCHASE,
RECAPITALIZATION, REORGANIZATION OR OTHER SIMILAR BUSINESS
COMBINATION WITH ONE OR MORE BUSINESSES OR ENTITIES
(“BUSINESS
COMBINATION”) (AS DESCRIBED MORE FULLY IN THE
COMPANY’S REGISTRATION STATEMENT (DEFINED HEREIN)) AND
NOVEMBER 20, 2018. VOID AFTER 5:00 P.M. NEW YORK CITY
LOCAL TIME, ON THE EXPIRATION DATE (DEFINED HEREIN). 

 

FORM OF

 

UNIT PURCHASE OPTION

 

FOR THE PURCHASE OF

 

600,000 UNITS 

 

OF

 

BIG ROCK PARTNERS ACQUISITION CORP.

 

1.           Purchase
Option.

 

THIS
CERTIFIES THAT, in consideration of $100 duly paid by or on behalf
of EarlyBirdCapital, Inc. (“Holder”),
as registered owner of this Purchase Option, to Big Rock Partners
Acquisition Corp. (“Company”),
Holder is entitled, at any time or from time to time upon the later
of the consummation of a Business Combination or November
20, 2018 (“Commencement
Date”), and at or before 5:00 p.m., New York City
local time, on the five year anniversary of the effective date
(“Effective
Date”) of the Company’s registration statement
(“Registration
Statement”) pursuant to which Units are offered for
sale to the public (“Offering”),
but not thereafter (“Expiration
Date”), to subscribe for, purchase and receive, in
whole or in part, up to six hundred thousand
(600,000) units (“Units”)
of the Company, each Unit consisting of one share of common stock
of the Company, par value $0.001 per share
(“Common
Stock”), one right (“Right(s)”) entitling the Holder to
receive one tenth (1/10) of a share of Common Stock upon
consummation of a Business Combination, and one-half of one warrant
(“Warrant(s)”),
each whole warrant to purchase one share of Common
Stock.  Each Right is the same as the right included in
the Units being registered for sale to the public by way of the
Registration Statement. Each Warrant is the same as the warrant
included in the Units being registered for sale to the public by
way of the Registration Statement (“Public
Warrants”).  If the Expiration Date is a day
on which banking institutions are authorized by law to close, then
this Purchase Option may be exercised on the next succeeding day
which is not such a day in accordance with the terms herein.
Notwithstanding anything to the contrary, the Holder agrees that it
will not be permitted to exercise this Purchase Option or the
Warrants underlying this Purchase Option after the five year
anniversary of the Effective Date. During the period ending on the
Expiration Date, the Company agrees not to take any action that
would terminate the Purchase Option. This Purchase Option is
initially exercisable at $10.00 per Unit so purchased; provided,
however, that upon the occurrence of any of the events specified in
Section 6 hereof, the rights granted by this Purchase Option,
including the exercise price per Unit and the number of Units (and
shares of Common Stock, Rights and Warrants) to be received upon
such exercise, shall be adjusted as therein specified. The term
“Exercise
Price” shall mean the initial exercise price or the
adjusted exercise price, depending on the context. 

 

 

 

2.           Exercise.

 

2.1         Exercise
Form. In order to exercise this Purchase Option, the
exercise form attached hereto must be duly executed and completed
and delivered to the Company, together with this Purchase Option
and payment of the Exercise Price for the Units being purchased
payable in cash or by certified check or official bank check. If
the subscription rights represented hereby shall not be exercised
at or before 5:00 p.m., New York City local time, on the Expiration
Date this Purchase Option shall become and be void without further
force or effect, and all rights represented hereby shall cease and
expire.

 

2.2         Legend.
Each certificate for the securities purchased under this Purchase
Option shall bear a legend as follows unless such securities have
been registered under the Securities Act of 1933, as amended
(“Act”):

 

“The
securities represented by this certificate have not been registered
under the Securities Act of 1933, as amended (“Act”) or
applicable state law. The securities may not be offered for sale,
sold or otherwise transferred except pursuant to an effective
registration statement under the Act, or pursuant to an exemption
from registration under the Act and applicable state
law.”

 

2.3         Cashless
Exercise.

 

2.3.1           Determination
of Amount. In lieu of the payment of the Exercise Price
multiplied by the number of Units for which this Purchase Option is
exercisable (and in lieu of being entitled to receive shares of
Common Stock and Warrants) in the manner required by Section 2.1,
and subject to Section 6.1 hereof, the Holder shall have the right
(but not the obligation) to convert any exercisable but unexercised
portion of this Purchase Option into Units (“Cashless Exercise
Right”) as follows:  upon exercise of the
Cashless Exercise Right, the Company shall deliver to the Holder
(without payment by the Holder of any of the Exercise Price in
cash) that number of Units (or that number of shares of Common
Stock, Rights and Warrants comprising that number of Units) equal
to the number of Units to be exercised multiplied by the quotient
obtained by dividing (x) the “Value” (as defined below)
of the portion of the Purchase Option being exercised by (y) the
Current Market Value (as defined below).  The
“Value” of the portion of the Purchase Option being
exercised shall equal the remainder derived from subtracting (a)
(i) the Exercise Price multiplied by (ii) the number of Units
underlying the portion of this Purchase Option being exercised from
(b) the Current Market Value of a Unit multiplied by the number of
Units underlying the portion of the Purchase Option being
exercised.  As used herein, the term “Current
Market Value” per Unit at any date means: (A) in the event
that the Units, Common Stock and Public Warrants are still trading,
(i) if the Units are listed on a national securities exchange or
quoted on the OTC Bulletin Board (or successor exchange), the
average reported last sale price of the Units in the principal
trading market for the Units as reported by the exchange, Nasdaq or
the Financial Industry Regulatory Authority (“FINRA”),
as the case may be, for the three trading days preceding the date
in question; or (ii) if the Units are not listed on a national
securities exchange or quoted on the OTC Bulletin Board (or
successor exchange), but is traded in the residual over-the-counter
market, the average reported last sale price for Units for the
three trading days preceding the date in question for which such
quotations are reported by the Pink Sheets, LLC or similar
publisher of such quotations; (B) in the event that the Units are
not still trading but the Common Stock and Public Warrants
underlying the Units are still trading, the aggregate of (i) the
product of (x) the Current Market Price of the Common Stock and (y)
the number of shares of Common Stock underlying one Unit (which
shall include the portion of a share of Common Stock the holder of
a Unit would automatically receive in connection with the Right
included in each such Unit) plus (ii) the product of (x) the
Current Market Price of the Public Warrants and (y) the number of
the Warrants included in one Unit; or (C) in the event that neither
the Units nor Public Warrants are still trading, the aggregate of
(i) the product of (x) the Current Market Price of the Common Stock
and (y) the number of shares of Common Stock underlying one Unit
(which shall include the portion of a share of Common Stock the
holder of a Unit would automatically receive in connection with the
Right included in each such Unit) plus (ii) the remainder derived
from subtracting (x) the exercise price of the Warrants multiplied
by the number of shares of Common Stock issuable upon exercise of
the Warrants underlying one Unit from (y) the product of (aa) the
Current Market Price of the Common Stock multiplied by (bb) the
number of shares of Common Stock underlying the Warrants included
in each such Unit. The “Current Market
Price” shall mean (i) if the Common Stock (or Public
Warrants, as the case may be) is listed on a national securities
exchange or quoted on the OTC Bulletin Board (or successor
exchange), the average reported last sale price of the Common Stock
(or Public Warrants) in the principal trading market for the Common
Stock (or Public Warrants) as reported by the exchange, Nasdaq or
FINRA, as the case may be, for the three trading days preceding the
date in question; (ii) if the Common Stock (or Public Warrants, as
the case may be) is not listed on a national securities exchange or
quoted on the OTC Bulletin Board (or successor exchange), but is
traded in the residual over-the-counter market, the average
reported last sale price for the Common Stock (or Public Warrants)
on for the three trading days preceding the date in question for
which such quotations are reported by the Pink Sheets, LLC or
similar publisher of such quotations; and (iii) if the fair market
value of the Common Stock cannot be determined pursuant to clause
(i) or (ii) above, such price as the Board of Directors of the
Company shall determine, in good faith.  In the event the
Public Warrants have expired and are no longer exercisable, no
“Value” shall be attributed to the Warrants underlying
this Purchase Option or Common Stock issuable upon exercise of the
Warrant.

 

 

2

 

 

2.3.2           Mechanics
of Cashless Exercise. The Cashless Exercise Right may be
exercised by the Holder on any business day on or after the
Commencement Date and not later than the Expiration Date by
delivering the Purchase Option with the duly executed exercise form
attached hereto with the cashless exercise section completed to the
Company, exercising the Cashless Exercise Right and specifying the
total number of Units the Holder will purchase pursuant to such
Cashless Exercise Right.

 

2.4         No
Obligation to Net Cash Settle. Notwithstanding anything to
the contrary contained in this Purchase Option, in no event will
the Company be required to net cash settle the exercise of the
Purchase Option or the Rights or Warrants underlying the Purchase
Option. The holder of the Purchase Option and the Warrants
underlying the Purchase Option will not be entitled to exercise the
Purchase Option or the Warrants underlying such Purchase Option
unless it exercises such Purchase Option pursuant to the Cashless
Exercise Right or a registration statement is effective, or an
exemption from the registration requirements is available at such
time and, if the holder is not able to exercise the Purchase Option
or underlying Warrants, the Purchase Option and/or the underlying
Warrants, as applicable, will expire worthless.

 

3.           Transfer.

 

3.1         General
Restrictions. The registered Holder of this Purchase Option,
by its acceptance hereof, agrees that it will not sell, transfer,
assign, pledge or hypothecate this Purchase Option (or the Common
Stock, Rights and Warrants underlying this Purchase Option) for a
period of 180 days pursuant to FINRA Conduct Rule 5110(g)(1)
following the Effective Date to anyone other than (i) EBC or
an underwriter or selected dealer in connection with the Offering,
or (ii) a bona fide officer or partner of EBC or of any such
underwriter or selected dealer. Additionally, pursuant to FINRA
Conduct Rule 5110(g), the Purchase Option (or the Common Stock,
Rights and Warrants underlying this Purchase Option) will not be
the subject of any hedging, short sale, derivative, put or call
transaction that would result in the economic disposition of the
securities by any person for a period of 180 days immediately
following the Effective Date. On and after the 181st day following the
Effective Date, transfers to others may be made subject to
compliance with or exemptions from applicable securities laws. In
order to make any permitted assignment, the Holder must deliver to
the Company the assignment form attached hereto duly executed and
completed, together with the Purchase Option and payment of all
transfer taxes, if any, payable in connection therewith. The
Company shall within five business days transfer this Purchase
Option on the books of the Company and shall execute and deliver a
new Purchase Option or Purchase Options of like tenor to the
appropriate assignee(s) expressly evidencing the right to purchase
the aggregate number of Units purchasable hereunder or such portion
of such number as shall be contemplated by any such
assignment.

 

3.2         Restrictions
Imposed by the Act. The securities evidenced by this
Purchase Option shall not be transferred unless and until
(i) the Company has received the opinion of counsel for the
Holder that the securities may be transferred pursuant to an
exemption from registration under the Act and applicable state
securities laws, the availability of which is established to the
reasonable satisfaction of the Company (the Company hereby agreeing
that the opinion of Graubard Miller shall be deemed satisfactory
evidence of the availability of an exemption), or (ii) a
registration statement or a post-effective amendment to the
Registration Statement relating to such securities has been filed
by the Company and declared effective by the Securities and
Exchange Commission (the “Commission”)
and compliance with applicable state securities law has been
established.

 

 

3

 

 

4.           New
Purchase Options to be Issued.

 

4.1         Partial
Exercise or Transfer. Subject to the restrictions in Section
3 hereof, this Purchase Option may be exercised or assigned in
whole or in part.  In the event of the exercise or
assignment hereof in part only, upon surrender of this Purchase
Option for cancellation, together with the duly executed exercise
or assignment form and funds sufficient to pay any Exercise Price
(except to the extent that the Holder elects to exercise this
Purchase Option by means of a cashless exercise as provided in
Section 2.3 above) and/or transfer tax, the Company shall cause to
be delivered to the Holder without charge a new Purchase Option of
like tenor to this Purchase Option in the name of the Holder
evidencing the right of the Holder to purchase the number of Units
purchasable hereunder as to which this Purchase Option has not been
exercised or assigned.

 

4.2         Lost
Certificate. Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, destruction or mutilation of
this Purchase Option and of reasonably satisfactory indemnification
or the posting of a bond, the Company shall execute and deliver a
new Purchase Option of like tenor and date. Any such new Purchase
Option executed and delivered as a result of such loss, theft,
mutilation or destruction shall constitute a substitute contractual
obligation on the part of the Company.

  
 

5.           Registration
Rights.

 

5.1         Demand
Registration.

 

5.1.1           Grant
of Right. The Company, upon written demand
(“Initial Demand
Notice”) of the Holder(s) of at least 51% of the
Purchase Options and/or the underlying Units and/or the underlying
securities (“Majority
Holders”), agrees to use its best efforts to register
(the “Demand
Registration”) under the Act on one occasion, all or
any portion of the Purchase Options requested by the Majority
Holders in the Initial Demand Notice and all of the securities
underlying such Purchase Options, including the Units, Common
Stock, the Warrants and the Common Stock underlying the Rights and
Warrants (collectively, the “Registrable
Securities”). On such occasion, the Company will use
its best efforts to file a registration statement or a
post-effective amendment to the Registration Statement covering the
Registrable Securities within sixty days after receipt of the
Initial Demand Notice and use its best efforts to have such
registration statement or post-effective amendment declared
effective as soon as possible thereafter. The demand for
registration may be made at any time during a period of five years
beginning on the Effective Date.  The Initial Demand
Notice shall specify the number of shares of Registrable Securities
proposed to be sold and the intended method(s) of distribution
thereof. The Company will notify all holders of the Purchase
Options and/or Registrable Securities of the demand within ten days
from the date of the receipt of any such Initial Demand Notice.
Each holder of Registrable Securities who wishes to include all or
a portion of such holder’s Registrable Securities in the
Demand Registration (each such holder including shares of
Registrable Securities in such registration, a “Demanding
Holder”) shall so notify the Company within fifteen
(15) days after the receipt by the holder of the notice from the
Company. Upon any such request, the Demanding Holders shall be
entitled to have their Registrable Securities included in the
Demand Registration, subject to Section 5.1.4. The Company shall
not be obligated to effect more than one (1) Demand Registration
under this Section 5.1 in respect of all Registrable
Securities.

 

5.1.2           Effective
Registration. A registration will not count as a Demand
Registration until the registration statement filed with the
Commission with respect to such Demand Registration has been
declared effective and the Company has complied with all of its
obligations under this Agreement with respect thereto.

 

5.1.3           Underwritten
Offering. If the Majority Holders so elect and such holders
so advise the Company as part of the Initial Demand Notice, the
offering of such Registrable Securities pursuant to such Demand
Registration shall be in the form of an underwritten offering. In
such event, the right of any holder to include its Registrable
Securities in such registration shall be conditioned upon such
holder’s participation in such underwriting and the inclusion
of such holder’s Registrable Securities in the underwriting
to the extent provided herein. All Demanding Holders proposing to
distribute their securities through such underwriting shall enter
into an underwriting agreement in customary form with the
underwriter or underwriters selected for such underwriting by the
Majority Holders.

 

 

4

 

 

 5.1.4           Reduction
of Offering. If the managing underwriter or underwriters for
a Demand Registration that is to be an underwritten offering
advises the Company and the Demanding Holders in writing that the
dollar amount or number of shares of Registrable Securities which
the Demanding Holders desire to sell, taken together with all other
Common Stock or other securities which the Company desires to sell
and the Common Stock, if any, as to which registration has been
requested pursuant to written contractual piggy-back registration
rights held by other stockholders of the Company who desire to
sell, exceeds the maximum dollar amount or maximum number of shares
that can be sold in such offering without adversely affecting the
proposed offering price, the timing, the distribution method, or
the probability of success of such offering (such maximum dollar
amount or maximum number of shares, as applicable, the
“Maximum Number of
Shares”), then the Company shall include in such
registration: (i) first, the Registrable Securities as to
which Demand Registration has been requested by the Demanding
Holders (pro rata in accordance with the number of shares that each
such Person has requested be included in such registration,
regardless of the number of shares held by each such Person (such
proportion is referred to herein as “Pro
Rata”)) that can be sold without exceeding the Maximum
Number of Shares; (ii) second, to the extent that the Maximum
Number of Shares has not been reached under the foregoing clause
(i), the Common Stock or other securities that the Company desires
to sell that can be sold without exceeding the Maximum Number of
Shares; (iii) third, to the extent that the Maximum Number of
Shares has not been reached under the foregoing clauses (i)
and (ii), the Common Stock or other securities registrable pursuant
to the terms of the Registration Rights Agreement between the
Company and the initial investors in the Company and EBC (and/or
its designees), dated as of November 20, 2017 (the
“Registration Rights
Agreement” and such registrable securities, the
“Investor
Securities”) as to which “piggy-back”
registration has been requested by the holders thereof, Pro Rata,
that can be sold without exceeding the Maximum Number of Shares;
and (iv) fourth, to the extent that the Maximum Number of
Shares have not been reached under the foregoing clauses (i),
(ii), and (iii), the Common Stock or other securities for the
account of other persons that the Company is obligated to register
pursuant to written contractual arrangements with such persons and
that can be sold without exceeding the Maximum Number of
Shares. 

 

5.1.5           Withdrawal.
If a majority-in-interest of the Demanding Holders disapprove of
the terms of any underwriting or are not entitled to include all of
their Registrable Securities in any offering, such
majority-in-interest of the Demanding Holders may elect to withdraw
from such offering by giving written notice to the Company and the
underwriter or underwriters of their request to withdraw prior to
the effectiveness of the registration statement filed with the
Commission with respect to such Demand Registration. If the
majority-in-interest of the Demanding Holders withdraws from a
proposed offering relating to a Demand Registration, then the
Company does not have to continue its obligations under
Section 5.1 with respect to such proposed
offering.

 

5.1.6           Terms.
The Company shall bear all fees and expenses attendant to
registering the Registrable Securities, including the expenses of
any legal counsel selected by the Holders to represent them in
connection with the sale of the Registrable Securities, but the
Holders shall pay any and all underwriting commissions. The Company
agrees to use its reasonable best efforts to qualify or register
the Registrable Securities in such states as are reasonably
requested by the Majority Holder(s); provided, however, that in no
event shall the Company be required to register the Registrable
Securities in a state in which such registration would cause (i)
the Company to be obligated to qualify to do business in such
state, or would subject the Company to taxation as a foreign
corporation doing business in such jurisdiction or (ii) the
principal stockholders of the Company to be obligated to escrow
their shares of Common Stock of the Company. The Company shall use
its best efforts to cause any registration statement or
post-effective amendment filed pursuant to the demand rights
granted under Section 5.1.1 to remain effective for a period of
nine consecutive months from the effective date of such
registration statement or post-effective amendment.

 

 

5

 

 

             

5.2         Piggy-Back
Registration.

 

5.2.1           Piggy-Back
Rights. If at any time during the seven year period
commencing on the Effective Date the Company proposes to file a
registration statement under the Act with respect to an offering of
equity securities, or securities or other obligations exercisable
or exchangeable for, or convertible into, equity securities, by the
Company for its own account or for stockholders of the Company for
their account (or by the Company and by stockholders of the Company
including, without limitation, pursuant to Section 5.1), other than
a registration statement (i) filed in connection with any
employee share option or other benefit plan, (ii) for an
exchange offer or offering of securities solely to the
Company’s existing stockholders, (iii) for an offering
of debt that is convertible into equity securities of the Company
or (iv) for a dividend reinvestment plan, then the Company
shall (x) give written notice of such proposed filing to the
holders of Registrable Securities as soon as practicable but in no
event less than ten (10) days before the anticipated filing date,
which notice shall describe the amount and type of securities to be
included in such offering, the intended method(s) of distribution,
and the name of the proposed managing underwriter or underwriters,
if any, of the offering, and (y) offer to the holders of
Registrable Securities in such notice the opportunity to register
the sale of such number of shares of Registrable Securities as such
holders may request in writing within five (5) days following
receipt of such notice (a “Piggy-Back
Registration”). The Company shall cause such
Registrable Securities to be included in such registration and
shall use its best efforts to cause the managing underwriter or
underwriters of a proposed underwritten offering to permit the
Registrable Securities requested to be included in a Piggy-Back
Registration on the same terms and conditions as any similar
securities of the Company and to permit the sale or other
disposition of such Registrable Securities in accordance with the
intended method(s) of distribution thereof. All holders of
Registrable Securities proposing to distribute their securities
through a Piggy-Back Registration that involves an underwriter or
underwriters shall enter into an underwriting agreement in
customary form with the underwriter or underwriters selected for
such Piggy-Back Registration.

 

5.2.2           Reduction
of Offering. If the managing underwriter or underwriters for
a Piggy-Back Registration that is to be an underwritten offering
advises the Company and the holders of Registrable Securities in
writing that the dollar amount or number of shares of Common Stock
which the Company desires to sell, taken together with Common
Stock, if any, as to which registration has been demanded pursuant
to written contractual arrangements with persons other than the
holders of Registrable Securities hereunder, the Registrable
Securities as to which registration has been requested under this
Section 5.2, and the Common Stock, if any, as to which registration
has been requested pursuant to the written contractual piggy-back
registration rights of other stockholders of the Company, exceeds
the Maximum Number of Shares, then the Company shall include in any
such registration:

 

(a)           If
the registration is undertaken for the Company’s account:
(A) first, the Common Stock or other securities that the
Company desires to sell that can be sold without exceeding the
Maximum Number of Shares; (B) second, to the extent that the
Maximum Number of Shares has not been reached under the foregoing
clause (A), the Common Stock or other securities, if any,
comprised of  Registrable Securities and Investor
Securities, as to which registration has been requested pursuant to
the applicable written contractual piggy-back registration rights
of such security holders, Pro Rata, that can be sold without
exceeding the Maximum Number of Shares; and (C) third, to the
extent that the Maximum Number of shares has not been reached under
the foregoing clauses (A) and (B), the Common Stock or other
securities for the account of other persons that the Company is
obligated to register pursuant to written contractual piggy-back
registration rights with such persons and that can be sold without
exceeding the Maximum Number of Shares;

 

(b)           If
the registration is a Demand Registration undertaken at the demand
of holders of Investor Securities, (A) first, the Common Stock
or other securities for the account of the demanding persons, Pro
Rata, that can be sold without exceeding the Maximum Number of
Shares; (B) second, to the extent that the Maximum Number of
Shares has not been reached under the foregoing clause (A),
the Common Stock or other securities that the Company desires to
sell that can be sold without exceeding the Maximum Number of
Shares; (C) third, to the extent that the Maximum Number of
Shares has not been reached under the foregoing clauses (A)
and (B), the shares of Registrable Securities, Pro Rata, as to
which registration has been requested pursuant to the terms hereof,
that can be sold without exceeding the Maximum Number of Shares;
and (D) fourth, to the extent that the Maximum Number of
Shares has not been reached under the foregoing clauses (A),
(B) and (C), the Common Stock or other securities for the account
of other persons that the Company is obligated to register pursuant
to written contractual arrangements with such persons, that can be
sold without exceeding the Maximum Number of Shares;
and

 

 

6

 

 

(c)           If
the registration is a Demand Registration undertaken at the demand
of persons other than either the holders of Registrable Securities
or of Investor Securities, (A) first, the Common Stock or other
securities for the account of the demanding persons that can be
sold without exceeding the Maximum Number of Shares; (B) second, to
the extent that the Maximum Number of Shares has not been reached
under the foregoing clause (A), the Common Stock or other
securities that the Company desires to sell that can be sold
without exceeding the Maximum Number of Shares; (C) third, to the
extent that the Maximum Number of Shares has not been reached under
the foregoing clauses (A) and (B), collectively the Common Stock or
other securities comprised of Registrable Securities and Investor
Securities, Pro Rata, as to which registration has been requested
pursuant to the terms hereof and of the Registration Rights
Agreement, as applicable, that can be sold without exceeding the
Maximum Number of Shares; and (D) fourth, to the extent that the
Maximum Number of Shares has not been reached under the foregoing
clauses (A), (B) and (C), the Common Stock or other securities for
the account of other persons that the Company is obligated to
register pursuant to written contractual arrangements with such
persons, that can be sold without exceeding the Maximum Number of
Shares.

 
                      

5.2.3           Withdrawal.
Any holder of Registrable Securities may elect to withdraw such
holder’s request for inclusion of Registrable Securities in
any Piggy-Back Registration by giving written notice to the Company
of such request to withdraw prior to the effectiveness of the
registration statement. The Company (whether on its own
determination or as the result of a withdrawal by persons making a
demand pursuant to written contractual obligations) may withdraw a
registration statement at any time prior to the effectiveness of
the registration statement. Notwithstanding any such withdrawal,
the Company shall pay all expenses incurred by the holders of
Registrable Securities in connection with such Piggy-Back
Registration as provided in Section 5.2.4.

 

5.2.4           Terms.
The Company shall bear all fees and expenses attendant to
registering the Registrable Securities, including the expenses of
any legal counsel selected by the Holders to represent them in
connection with the sale of the Registrable Securities but the
Holders shall pay any and all underwriting commissions related to
the Registrable Securities. In the event of such a proposed
registration, the Company shall furnish the then Holders of
outstanding Registrable Securities with not less than fifteen days
written notice prior to the proposed date of filing of such
registration statement. Such notice to the Holders shall continue
to be given for each applicable registration statement filed
(during the period in which the Purchase Option is exercisable) by
the Company until such time as all of the Registrable Securities
have been registered and sold. The Holders of the Registrable
Securities shall exercise the “piggy-back” rights
provided for herein by giving written notice, within ten days of
the receipt of the Company’s notice of its intention to file
a registration statement. The Company shall use its best efforts to
cause any registration statement filed pursuant to the above
“piggyback” rights to remain effective for at least
nine months from the date that the Holders of the Registrable
Securities are first given the opportunity to sell all of such
securities.

 

5.3         General
Terms.

 

5.3.1           Indemnification.
The Company shall, to the fullest extent permitted by applicable
law, indemnify the Holder(s) of the Registrable Securities to be
sold pursuant to any registration statement hereunder and each
person, if any, who controls such Holders within the meaning of
Section 15 of the Act or Section 20(a) of the Securities Exchange
Act of 1934, as amended (“Exchange
Act”), against all loss, claim, damage, expense or
liability (including all reasonable attorneys’ fees and other
expenses reasonably incurred in investigating, preparing or
defending against litigation, commenced or threatened, or any claim
whatsoever whether arising out of any action between the
underwriter and the Company or between the underwriter and any
third party or otherwise) to which any of them may become subject
under the Act, the Exchange Act or otherwise, arising from such
registration statement but only to the same extent and with the
same effect as the provisions pursuant to which the Company has
agreed to indemnify the underwriters contained in Section 5 of the
Underwriting Agreement between the Company, EBC and the other
underwriters named therein dated the Effective Date. The Holder(s)
of the Registrable Securities to be sold pursuant to such
registration statement, and their successors and assigns, shall
severally, and not jointly, indemnify the Company, its officers and
directors and each person, if any, who controls the Company within
the meaning of Section 15 of the Act or Section 20(a) of the
Exchange Act, against all loss, claim, damage, expense or liability
(including all reasonable attorneys’ fees and other expenses
reasonably incurred in investigating, preparing or defending
against any claim whatsoever) to which they may become subject
under the Act, the Exchange Act or otherwise, arising from
information furnished by or on behalf of such Holders, or their
successors or assigns, in writing, for specific inclusion in such
registration statement to the same extent and with the same effect
as the provisions contained in Section 5 of the Underwriting
Agreement pursuant to which the underwriters have agreed to
indemnify the Company.

 

5.3.2           Exercise
of Purchase Options. Nothing contained in this Purchase
Option shall be construed as requiring the Holder(s) to exercise
their Purchase Options or Warrants underlying such Purchase Options
prior to or after the initial filing of any registration statement
or the effectiveness thereof.

 

5.3.3           Documents
Delivered to Holders. The Company shall furnish EBC, as
representative of the Holders participating in any of the foregoing
offerings, a signed counterpart, addressed to the participating
Holders, of (i) an opinion of counsel to the Company, dated the
effective date of such registration statement (and, if such
registration includes an underwritten public offering, an opinion
dated the date of the closing under any underwriting agreement
related thereto), and (ii) if such registration statement is filed
in connection of an underwritten public offering, a “cold
comfort” letter dated the effective date of such registration
statement (and, if such registration includes an underwritten
public offering, a letter dated the date of the closing under the
underwriting agreement) signed by the independent public
accountants who have issued a report on the Company’s
financial statements included in such registration statement, in
each case covering substantially the same matters with respect to
such registration statement (and the prospectus included therein)
and, in the case of such accountants’ letter, with respect to
events subsequent to the date of such financial statements, as are
customarily covered in opinions of issuer’s counsel and in
accountants’ letters delivered to underwriters in
underwritten public offerings of securities. The Company shall also
deliver promptly to EBC, as representative of the Holders
participating in the offering, the correspondence and memoranda
described below and copies of all correspondence between the
Commission and the Company, its counsel or auditors and all
memoranda relating to discussions with the Commission or its staff
with respect to the registration statement and permit EBC, as
representative of the Holders, to do such investigation, upon
reasonable advance notice, with respect to information contained in
or omitted from the registration statement as it deems reasonably
necessary to comply with applicable securities laws or rules of
FINRA. Such investigation shall include access to books, records
and properties and opportunities to discuss the business of the
Company with its officers and independent auditors, all to such
reasonable extent and at such reasonable times and as often as EBC,
as representative of the Holders, shall reasonably request. The
Company shall not be required to disclose any confidential
information or other records to EBC, as representative of the
Holders, or to any other person, until and unless such persons
shall have entered into reasonable confidentiality agreements (in
form and substance reasonably satisfactory to the Company), with
the Company with respect thereto.

 

5.3.4           Underwriting
Agreement. The Company shall enter into an underwriting
agreement with the managing underwriter(s), if any, selected by any
Holders whose Registrable Securities are being registered pursuant
to this Section 5, which managing underwriter shall be reasonably
acceptable to the Company. Such agreement shall be reasonably
satisfactory in form and substance to the Company, each Holder and
such managing underwriters, and shall contain such representations,
warranties and covenants by the Company and such other terms as are
customarily contained in agreements of that type used by the
managing underwriter. The Holders shall be parties to any
underwriting agreement relating to an underwritten sale of their
Registrable Securities and may, at their option, require that any
or all the representations, warranties and covenants of the Company
to or for the benefit of such underwriters shall also be made to
and for the benefit of such Holders. Such Holders shall not be
required to make any representations or warranties to or agreements
with the Company or the underwriters except as they may relate to
such Holders and their intended methods of distribution. Such
Holders, however, shall agree to such covenants and indemnification
and contribution obligations for selling stockholders as are
customarily contained in agreements of that type used by the
managing underwriter. Further, such Holders shall execute
appropriate custody agreements and otherwise cooperate fully in the
preparation of the registration statement and other documents
relating to any offering in which they include securities pursuant
to this Section 5. Each Holder shall also furnish to the Company
such information regarding itself, the Registrable Securities held
by it, and the intended method of disposition of such securities as
shall be reasonably required to effect the registration of the
Registrable Securities.

 

5.3.5           Rule
144 Sale. Notwithstanding anything contained in this Section
5 to the contrary, the Company shall have no obligation pursuant to
Sections 5.1 or 5.2 to use its best efforts to obtain the
registration of Registrable Securities held by any Holder (i) where
such Holder would then be entitled to sell under Rule 144 within
any three-month period (or such other period prescribed under Rule
144 as may be provided by amendment thereof) all of the Registrable
Securities then held by such Holder, and (ii) where the number of
Registrable Securities held by such Holder is within the volume
limitations under paragraph (e) of Rule 144 (calculated as if such
Holder were an affiliate within the meaning of Rule
144).

 

 

7

 

 

5.3.6           Supplemental
Prospectus. Each Holder agrees, that upon receipt of any
notice from the Company of the happening of any event as a result
of which the prospectus included in the registration statement, as
then in effect, includes an untrue statement of a material fact or
omits to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in light of
the circumstances then existing, such Holder will immediately
discontinue disposition of Registrable Securities pursuant to the
registration statement covering such Registrable Securities until
such Holder’s receipt of the copies of a supplemental or
amended prospectus, and, if so desired by the Company, such Holder
shall deliver to the Company (at the expense of the Company) or
destroy (and deliver to the Company a certificate of such
destruction) all copies, other than permanent file copies then in
such Holder’s possession, of the prospectus covering such
Registrable Securities current at the time of receipt of such
notice.

 

6.           Adjustments.

 

6.1         Adjustments
to Exercise Price and Number of Securities. The Exercise
Price and the number of Units underlying the Purchase Option shall
be subject to adjustment from time to time as hereinafter set
forth:

 

6.1.1           Share
Dividends - Split-Ups. If after the date hereof, and subject
to the provisions of Section 6.3 below, the number of outstanding
shares of Common Stock is increased by a share dividend payable in
Common Stock or by a split-up of Common Stock or other similar
event, then, on the effective date thereof, the number of shares of
Common Stock underlying each of the Units purchasable hereunder
shall be increased in proportion to such increase in outstanding
shares. In such case, the number of shares of Common Stock, and the
exercise price applicable thereto, underlying the Warrants
underlying each of the Units purchasable hereunder shall be
adjusted in accordance with the terms of the Warrants.

 

6.1.2           Aggregation
of Shares. If after the date hereof, and subject to the
provisions of Section 6.3, the number of outstanding shares of
Common Stock is decreased by a consolidation, combination or
reclassification of Common Stock or other similar event, then, on
the effective date thereof, the number of shares of Common Stock
underlying each of the Units purchasable hereunder shall be
decreased in proportion to such decrease in outstanding shares. In
such case, the number of shares of Common Stock, and the exercise
price applicable thereto, underlying the Warrants underlying each
of the Units purchasable hereunder shall be adjusted in accordance
with the terms of the Warrants.

 

6.1.3           Replacement
of Securities upon Reorganization, etc. In case of any
reclassification or reorganization of the outstanding Common Stock
other than a change covered by Section 6.1.1 or 6.1.2 hereof or
that solely affects the par value of such Common Stock, or in the
case of any merger or consolidation of the Company with or into
another corporation (other than a consolidation or merger in which
the Company is the continuing corporation and that does not result
in any reclassification or reorganization of the outstanding Common
Stock), or in the case of any sale or conveyance to another
corporation or entity of the property of the Company as an entirety
or substantially as an entirety in connection with which the
Company is dissolved, the Holder of this Purchase Option shall have
the right thereafter (until the expiration of the right of exercise
of this Purchase Option) to receive upon the exercise hereof, for
the same aggregate Exercise Price payable hereunder immediately
prior to such event, the kind and amount of shares or other
securities or property (including cash) receivable upon such
reclassification, reorganization, merger or consolidation, or upon
a dissolution following any such sale or transfer, by a Holder of
the number of shares of Common Stock of the Company obtainable upon
exercise of this Purchase Option and the underlying Rights and
Warrants immediately prior to such event; and if any
reclassification also results in a change in Common Stock covered
by Section 6.1.1 or 6.1.2, then such adjustment shall be made
pursuant to Sections 6.1.1, 6.1.2 and this Section 6.1.3. The
provisions of this Section 6.1.3 shall similarly apply to
successive reclassifications, reorganizations, mergers or
consolidations, sales or other transfers.

 

 

 

8

 

6.1.4           Changes
in Form of Purchase Option. This form of Purchase Option
need not be changed because of any change pursuant to this Section,
and Purchase Options issued after such change may state the same
Exercise Price and the same number of Units as are stated in the
Purchase Options initially issued pursuant to this Agreement. The
acceptance by any Holder of the issuance of new Purchase Options
reflecting a required or permissive change shall not be deemed to
waive any rights to an adjustment occurring after the Commencement
Date or the computation thereof.

 

6.2         Substitute
Purchase Option. In case of any consolidation of the Company
with, or merger of the Company with, or merger of the Company into,
another corporation (other than a consolidation or merger which
does not result in any reclassification or change of the
outstanding Common Stock), the corporation formed by such
consolidation or merger shall execute and deliver to the Holder a
supplemental Purchase Option providing that the holder of each
Purchase Option then outstanding or to be outstanding shall have
the right thereafter (until the stated expiration of such Purchase
Option) to receive, upon exercise of such Purchase Option, the kind
and amount of shares and other securities and property receivable
upon such consolidation or merger, by a holder of the number of
shares of Common Stock of the Company for which such Purchase
Option might have been exercised immediately prior to such
consolidation, merger, sale or transfer. Such supplemental Purchase
Option shall provide for adjustments which shall be identical to
the adjustments provided in Section 6. The above provision of this
Section shall similarly apply to successive consolidations or
mergers.

 

6.3         Elimination
of Fractional Interests. The Company shall not be required
to issue certificates representing fractions of shares of Common
Stock or Warrants upon the exercise of the Purchase Option, nor
shall it be required to issue scrip or pay cash in lieu of any
fractional interests, it being the intent of the parties that all
fractional interests shall be eliminated by rounding any fraction
up or down to the nearest whole number of Warrants, shares of
Common Stock or other securities, properties or rights (or as
otherwise provided pursuant to the Warrants Agreement or Rights
Agreement, as the case may be).

 

7.           Reservation
and Listing. The Company shall at all times reserve and keep
available out of its authorized but unissued Common Stock, solely
for the purpose of issuance upon exercise of the Purchase Options
(including the Common Stock underlying the Rights) or the Warrants
underlying the Purchase Option, such number of shares of Common
Stock or other securities, properties or rights as shall be
issuable upon the exercise thereof. The Company covenants and
agrees that, upon exercise of the Purchase Options and payment of
the Exercise Price therefor, all shares of Common Stock and other
securities issuable upon such exercise shall be duly and validly
issued, fully paid and non-assessable and not subject to preemptive
rights of any stockholder. The Company further covenants and agrees
that upon exercise of the Warrants underlying the Purchase Options
and payment of the respective Warrant exercise price therefor, all
shares of Common Stock and other securities issuable upon such
exercise shall be duly and validly issued, fully paid and
non-assessable and not subject to preemptive rights of any
stockholder. As long as the Purchase Options shall be outstanding,
the Company shall use its best efforts to cause all (i) Units and
Common Stock issuable upon exercise of the Purchase Options
(including the Common Stock underlying the Rights), (ii) Warrants
issuable upon exercise of the Purchase Options, and (iii) Common
Stock issuable upon conversion of the Rights included in the Units
issuable upon exercise of the Purchase Option and (iv) Common Stock
issuable upon exercise of the Warrants included in the Units
issuable upon exercise of the Purchase Option to be listed (subject
to official notice of issuance) on all securities exchanges (or, if
applicable on the OTC Bulletin Board or any successor trading
market) on which the Units, the Common Stock or the Public Warrants
issued to the public in connection herewith may then be listed
and/or quoted.

 

8.           Certain
Notice Requirements.

 

8.1         Holder’s
Right to Receive Notice. Nothing herein shall be construed
as conferring upon the Holders the right to vote or consent as a
stockholder for the election of directors or any other matter, or
as having any rights whatsoever as a stockholder of the Company.
If, however, at any time prior to the expiration of the Purchase
Options and their exercise, any of the events described in Section
8.2 shall occur, then, in one or more of said events, the Company
shall give written notice of such event at least fifteen days prior
to the date fixed as a record date or the date of closing the
transfer books for the determination of the stockholders entitled
to such dividend, distribution, conversion or exchange of
securities or subscription rights, or entitled to vote on such
proposed dissolution, liquidation, winding up or sale. Such notice
shall specify such record date or the date of the closing of the
transfer books, as the case may be. Notwithstanding the foregoing,
the Company shall deliver to each Holder a copy of each notice
given to the other stockholders of the Company at the same time and
in the same manner that such notice is given to the
stockholders.

 

 

9

 

 

             
8.2         Events
Requiring Notice. The Company shall be required to give the
notice described in this Section 8 upon one or more of the
following events: (i) if the Company shall take a record of the
holders of its Common Stock for the purpose of entitling them to
receive a dividend or distribution payable otherwise than in cash,
or a cash dividend or distribution payable otherwise than out of
retained earnings, as indicated by the accounting treatment of such
dividend or distribution on the books of the Company, or (ii) the
Company shall offer to all the holders of its Common Stock any
additional shares of the Company or securities convertible into or
exchangeable for shares of the Company, or any option, right or
warrant to subscribe therefor, or (iii) a dissolution, liquidation
or winding up of the Company (other than in connection with a
consolidation or merger) or a sale of all or substantially all of
its property, assets and business shall be proposed.

 

8.3         Notice
of Change in Exercise Price. The Company shall, promptly
after an event requiring a change in the Exercise Price pursuant to
Section 6 hereof, send notice to the Holders of such event and
change (“Price
Notice”). The Price Notice shall describe the event
causing the change and the method of calculating same and shall be
certified as being true and accurate by the Company’s
President and Chief Financial Officer.

 

8.4         Transmittal
of Notices. All notices, requests, consents and other
communications under this Purchase Option shall be in writing and
shall be deemed to have been duly made when hand delivered, or
mailed by express mail or private courier service: (i) if to the
registered Holder of the Purchase Option, to the address of such
Holder as shown on the books of the Company, or (ii) if to the
Company, to the following address or to such other address as the
Company may designate by notice to the Holders:

 

Big
Rock Partners Acquisition Corp.

c/o Big
Rock Partners Sponsor, LLC

2645 N.
Federal Highway

Suite
230

Delray
Beach, Florida 33483

Attn:
Chief Executive Officer

Email:
rackerman@bigrockpartners.com 

 

9.           Miscellaneous.

 

9.1         Amendments.
The Company and EBC may from time to time supplement or amend this
Purchase Option without the approval of any of the Holders in order
to cure any ambiguity, to correct or supplement any provision
contained herein that may be defective or inconsistent with any
other provisions herein, or to make any other provisions in regard
to matters or questions arising hereunder that the Company and EBC
may deem necessary or desirable and that the Company and EBC deem
shall not adversely affect the interest of the Holders. All other
modifications or amendments shall require the written consent of
and be signed by the party against whom enforcement of the
modification or amendment is sought.

 

9.2         Headings.
The headings contained herein are for the sole purpose of
convenience of reference, and shall not in any way limit or affect
the meaning or interpretation of any of the terms or provisions of
this Purchase Option.

 

9.3         Entire
Agreement. This Purchase Option (together with the other
agreements and documents being delivered pursuant to or in
connection with this Purchase Option) constitutes the entire
agreement of the parties hereto with respect to the subject matter
hereof, and supersedes all prior agreements and understandings of
the parties, oral and written, with respect to the subject matter
hereof.

 

9.4         Binding
Effect. This Purchase Option shall inure solely to the
benefit of and shall be binding upon, the Holder and the Company
and their permitted assignees, respective successors, legal
representative and assigns, and no other person shall have or be
construed to have any legal or equitable right, remedy or claim
under or in respect of or by virtue of this Purchase Option or any
provisions herein contained.

 

 

 

10

 

9.5         Governing
Law; Submission to Jurisdiction. This Purchase Option shall
be governed by and construed and enforced in accordance with the
laws of the State of New York, without giving effect to conflict of
laws. The Company hereby agrees that any action, proceeding or
claim against it arising out of, or relating in any way to this
Purchase Option shall be brought and enforced in the courts of the
State of New York or of the United States of America 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 inconvenient forum. Any 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 8 hereof. Such mailing shall be deemed personal service and
shall be legal and binding upon the Company in any action,
proceeding or claim. The Company and the Holder agree that the
prevailing party(ies) in any such action shall be entitled to
recover from the other party(ies) all of its reasonable
attorneys’ fees and expenses relating to such action or
proceeding and/or incurred in connection with the preparation
therefor.

 

9.6         Waiver,
Etc. The failure of the Company or the Holder to at any time
enforce any of the provisions of this Purchase Option shall not be
deemed or construed to be a waiver of any such provision, nor to in
any way affect the validity of this Purchase Option or any
provision hereof or the right of the Company or any Holder to
thereafter enforce each and every provision of this Purchase
Option. No waiver of any breach, non-compliance or non-fulfillment
of any of the provisions of this Purchase Option shall be effective
unless set forth in a written instrument executed by the party or
parties against whom or which enforcement of such waiver is sought;
and no waiver of any such breach, non-compliance or non-fulfillment
shall be construed or deemed to be a waiver of any other or
subsequent breach or non-compliance.

 

9.7         Execution
in Counterparts. This Purchase Option may be executed in one
or more counterparts, and by the different parties hereto in
separate counterparts, each of which shall be deemed to be an
original, but all of which taken together shall constitute one and
the same agreement, and shall become effective when one or more
counterparts has been signed by each of the parties hereto and
delivered to each of the other parties hereto.

 

9.8         Exchange
Agreement. As a condition of the Holder’s receipt and
acceptance of this Purchase Option, Holder agrees that, at any time
prior to the complete exercise of this Purchase Option by Holder,
if the Company and EBC enter into an agreement (“Exchange
Agreement”) pursuant to which they agree that all
outstanding Purchase Options will be exchanged for securities or
cash or a combination of both, then Holder shall agree to such
exchange and become a party to the Exchange Agreement.

 

 

 

 

11

 

IN
WITNESS WHEREOF, the Company has caused this Purchase Option to be
signed by its duly authorized officer as of the [___] day of
[_____], 2017.

 

 

 

	

BIG ROCK PARTNERS ACQUISITION CORP.

	
 

	
 

	
 

	
 

	

By:

	
 

	
 

	
 

	

Name:

	
 

	
 

	

Title:

 

 

 

12

 

Form to
be used to exercise Purchase Option:

 

Big
Rock Partners Acquisition Corp.

c/o Big
Rock Partners Sponsor, LLC

2645 N.
Federal Highway

Suite
230

Delray
Beach, Florida 33483

Attn.:
Chief Executive Officer

 

Date:_________________,
20___

 

The
undersigned hereby elects irrevocably to exercise all or a portion
of the within Purchase Option and to purchase ____ Units of Big
Rock Partners Acquisition Corp.and hereby makes payment of
$____________ (at the rate of $10.00 per Unit) in payment of the
Exercise Price pursuant thereto. Please issue the securities as to
which this Purchase Option is exercised in accordance with the
instructions given below.

or

 

The
undersigned hereby elects irrevocably to convert its right to
purchase _________ Units purchasable under the within Purchase
Option by surrender of the unexercised portion of the attached
Purchase Option (with a “Value” based of $_______ based
on a “Market Price” of $_______). Please issue the
securities comprising the Units as to which this Purchase Option is
exercised in accordance with the instructions given
below.

 

 

	
 

	

NOTICE:  The
signature to this assignment must correspond with the name as
written upon the face of the purchase option in every particular,
without alteration or enlargement or any change
whatever.

 

Signature(s)
Guaranteed:

 

	
 

	

THE
SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR
INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND
CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE
MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15).

 

 
 

 

INSTRUCTIONS
FOR REGISTRATION OF SECURITIES

 

Name

 

	
 

	

(Print
in Block Letters)

 

Address

 

	
 

 

 

 

 

13

 

Form to
be used to assign Purchase Option:

 

ASSIGNMENT

 

(To be
executed by the registered Holder to effect a transfer of the
within Purchase Option):

 

FOR
VALUE RECEIVED,______________________________________________ does
hereby sell, assign and transfer
unto___________________________________________ the right to
purchase __________ Units of Big Rock Partners Acquisition Corp.
(“Company”)
evidenced by the within Purchase Option and does hereby authorize
the Company to transfer such right on the books of the
Company.

 

Dated:
___________________, 20__

 

	
 

	
 

	
 

	

Signature

	
 

	
 

	
 

	
 

	
 

	

NOTICE:  The
signature to this assignment must correspond with the name as
written upon the face of the purchase option in every particular,
without alteration or enlargement or any change
whatever.

 

Signature(s)
Guaranteed:

 

	
 

	

THE
SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR
INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND
CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE
MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15).

 

 

 

 

 
14

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