Exhibit 10.1


 





	 	October 25, 2017



  


CM Seven Star Acquisition Corporation


Suite 1003-1004, 10/F, ICBC Tower


Three Garden Road, Central, Hong Kong


 


EarlyBirdCapital, Inc.


366 Madison Avenue, 8th Floor


New York, NY 10017


 


Re:     Initial
Public Offering


 


Gentlemen:


 


This letter is being delivered
to you in accordance with the Underwriting Agreement (the “Underwriting Agreement”) entered into by and
between CM Seven Star Acquisition Corporation, a Cayman Islands exempted company (the “Company”), and
EarlyBirdCapital, Inc., as Representative (the “Representative”) of the several Underwriters named in
Schedule I thereto (the “Underwriters”), relating to an underwritten initial public offering (the “IPO”)
of the Company’s units (the “Units”), each comprised of one ordinary share of the Company, par
value $0.0001 per share (the “Ordinary Shares”), one-half of a redeemable warrant (the “Warrants”),
each whole redeemable Warrant entitling the holder thereof to purchase one Ordinary Share at a price of $11.50 per share, and one
right to receive one-tenth of an Ordinary Share (the “Rights”). Certain capitalized terms used herein
are defined in paragraph 14 hereof.


 


In order to induce the Company and
the Underwriters to enter into the Underwriting Agreement and to proceed with the IPO, and in recognition of the benefit that such
IPO will confer upon the undersigned as a shareholder of the Company, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the undersigned hereby agrees with the Company as follows:


 


1.       If
the Company solicits approval of its shareholders of a Business Combination, the undersigned will vote all Ordinary shares beneficially
owned by [him, her or it] whether acquired before, in or after the IPO, in favor of such Business Combination.


 


2.       (a)
In the event that the Company fails to consummate a Business Combination within 15 months from the closing of the Company’s
IPO (or, if such time period is extended as described in the prospectus relating to the IPO, up to 18 months from the closing of
the Company’s IPO), the undersigned shall take all reasonable steps to (i) cause the Trust Fund to be liquidated and distributed
to the holders of IPO Shares and (ii) cause the Company to liquidate as soon as reasonably practicable.


 






     


     


    

 


(b)   The undersigned
hereby waives any and all right, title, interest or claim of any kind in or to any distribution of the Trust Fund and any remaining
net assets of the Company as a result of such liquidation with respect to [his, her or its] Insider Shares [or Private Units (and
the underlying Ordinary Shares)]1 (“Claim”) and hereby waives any Claim the undersigned may
have in the future as a result of, or arising out of, any contracts or agreements with the Company and will not seek recourse
against the Trust Fund for any reason whatsoever. The undersigned acknowledges and agrees that there will be no distribution from
the Trust Fund with respect to any Warrants or Rights underlying the Private Units, all rights of which will terminate on the
Company’s liquidation.


 


(c)   [In the event of the liquidation
of the Trust Fund, the undersigned agrees to indemnify and hold harmless the Company against any and all loss, liability, claims,
damage and expense whatsoever (including, but not limited to, any and all legal or other expenses reasonably incurred in investigating,
preparing or defending against any litigation, whether pending or threatened, or any claim whatsoever) which the Company may become
subject as a result of any claim by any target business or vendor or other person who is owed money by the Company for services
rendered or products sold or contracted for, but only to the extent necessary to ensure that such loss, liability, claim, damage
or expense does not reduce the amount of funds in the Trust Fund; provided that such indemnity shall not apply if such
target business, vendor or other person has executed an agreement waiving any claims against the Trust Fund.]2


 


(d)       [In
the event that the Company does not consummate a Business Combination and must liquidate and its remaining net assets are insufficient
to complete such liquidation, the undersigned agrees to advance such funds necessary to complete such liquidation and agrees not
to seek repayment for such expenses.]3


 


3.            The
undersigned will escrow all of [his, her or its] Insider Shares pursuant to the terms of a Stock Escrow Agreement which the Company
will enter into with the undersigned and an escrow agent acceptable to the Company.


 


4.           [The
undersigned agrees that until the Company consummates a Business Combination, the undersigned’s Private Units will be subject
to the transfer restrictions described in the Subscription Agreement relating to the undersigned’s Private Units.]4


 





 






1 Only applicable for Shareholder Value Fund.


2 Only applicable for Bing Lin.


3 Only applicable for Shareholder Value Fund.


4 Only applicable for Shareholder Value Fund.


 








     


     


    

 


5.       In
order to minimize potential conflicts of interest which may arise from multiple affiliations, the undersigned agrees to present
to the Company for its consideration, prior to presentation to any other person or entity, any suitable opportunity to acquire
a target business, until the earlier of the consummation by the Company of a Business Combination or the liquidation of the Company,
subject to any pre-existing fiduciary and contractual obligations the undersigned might have.


 


6.       The
undersigned acknowledges and agrees that prior to entering into a Business Combination with a target business that is affiliated
with any Insiders of the Company or their affiliates, including any company that is a portfolio company of, or otherwise affiliated
with, or has received financial investment from, an entity with which any Insider or their affiliates is affiliated, such transaction
must be approved by a majority of the Company’s disinterested independent directors and the Company must obtain an opinion
from an independent investment banking firm or another independent entity that commonly renders valuation opinions on the type
of target business the Company is seeking to acquire that such Business Combination is fair to the Company’s unaffiliated
shareholders from a financial point of view.


 


7.       Neither
the undersigned, any member of the family of the undersigned, nor any affiliate of the undersigned will be entitled to receive
and no such person will accept any compensation or other cash payment prior to, or for services rendered in connection with, the
consummation of the Business Combination; provided that the Company shall be allowed to make the payments set forth in the
Registration Statement under the caption “Prospectus Summary – The Offering – Limited Payments to Insiders.”


 


8.       Neither
the undersigned, any member of the family of the undersigned, nor any affiliate of the undersigned will be entitled to receive
or accept a finder’s fee or any other compensation in the event the undersigned, any member of the family of the undersigned
or any affiliate of the undersigned originates a Business Combination.


 


 



5 Insert
applicable officer title, if any.


 



     


     


    

 


9.       [The
undersigned agrees to be [a Director/[●]5] of the Company until the
earlier of the consummation by the Company of a Business Combination or the liquidation of the Company.] The undersigned’s
biographical information previously furnished to the Company and the Representative is true and accurate in all material respects,
does not omit any material information with respect to the undersigned’s biography and contains all of the information required
to be disclosed pursuant to Item 401 of Regulation S-K, promulgated under the Securities Act of 1933. The undersigned’s
FINRA Questionnaire previously furnished to the Company and the Representative is true and accurate in all material respects.
The undersigned represents and warrants that:


 


		(a)	[he/she/it] has never had a petition under the federal bankruptcy laws or any state insolvency law been filed by or against
(i) [him/her/it] or any partnership in which [he/she/it] was a general partner at or within two years before the time of filing;
or (ii) any corporation or business association of which [he/she/it] was an executive officer at or within two years before the
time of such filing;



 


		(b)	[he/she/it] has never had a receiver, fiscal agent or similar officer been appointed by a court for [his/her/its] business
or property, or any such partnership;



 


		(c)	[he/she/it] has never been convicted of fraud in a civil or criminal proceeding;



 


		(d)	[he/she/it] has never been convicted in a criminal proceeding or named the subject of a pending criminal proceeding (excluding
traffic violations and minor offenses);



 


		(e)	[he/she/it] has never been the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of
any court of competent jurisdiction, permanently or temporarily enjoining or otherwise limiting [him/her/it] from (i) acting as
a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction
merchant, any other person regulated by the Commodity Futures Trading Commission (“CFTC”) or an associated person of
any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director
or employee of any investment company, bank, savings and loan association or insurance company, or from engaging in or continuing
any conduct or practice in connection with any such activity; or (ii) engaging in any type of business practice; or (iii) engaging
in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of federal
or state securities or federal commodities laws;



 


		(f)	[he/she/it] has never been the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of
any federal or state authority barring, suspending or otherwise limiting for more than 60 days [his/her/its] right to engage in
any activity described in 9(e)(i) above, or to be associated with persons engaged in any such activity;



 


		(g)	[he/she/it] has never been found by a court of competent jurisdiction in a civil action or by the SEC to have violated any
federal or state securities law, where the judgment in such civil action or finding by the SEC has not been subsequently reversed,
suspended or vacated;



 






     


     


    

 


		(h)	[he/she/it] has never been found by a court of competent jurisdiction in a civil action or by the CFTC to have violated any
federal commodities law, where the judgment in such civil action or finding by the CFTC has not been subsequently reversed, suspended
or vacated;



 


		(i)	[he/she/it] has never been the subject of, or a party to, any Federal or State judicial or administrative order, judgment,
decree or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of (i) any Federal or State
securities or commodities law or regulation, (ii) any law or regulation respecting financial institutions or insurance companies
including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or
temporary or permanent cease-and desist order, or removal or prohibition order or (iii) any law or regulation prohibiting mail
or wire fraud or fraud in connection with any business entity;



 


		(j)	[he/she/it] has never been the subject of, or party to, any sanction or order, not subsequently reversed, suspended or vacated,
or any self-regulatory organization, any registered entity, or any equivalent exchange, association, entity or organization that
has disciplinary authority over its members or persons associated with a member;



 


		(k)	[he/she/it] has never been convicted of any felony or misdemeanor: (i) in connection with the purchase or sale of any security;
(ii) involving the making of any false filing with the SEC; or (iii) arising out of the conduct of the business of an underwriter,
broker, dealer, municipal securities dealer, investment advisor or paid solicitor of purchasers of securities;



 


		(l)	[he/she/it] was never subject to a final order of a state securities commission (or an agency of officer of a state performing
like functions); a state authority that supervises or examines banks, savings associations, or credit unions; a state insurance
commission (or an agency or officer of a state performing like functions); an appropriate federal banking agency; the CFTC; or
the National Credit Union Administration that is based on a violation of any law or regulation that prohibits fraudulent, manipulative,
or deceptive conduct;



 






     


     


    

 


		(m)	[he/she/it] has never been subject to any order, judgment or decree of any court of competent jurisdiction, that, at the time
of such sale, restrained or enjoined [him/her/it] from engaging or continuing to engage in any conduct or practice: (i) in connection
with the purchase or sale of any security; (ii) involving the making of any false filing with the SEC; or (iii) arising out of
the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser or paid solicitor
of purchasers of securities;



 


		(n)	[he/she/it] has never been subject to any order of the SEC that orders [him/her/it] to cease and desist from committing or
causing a future violation of: (i) any scienter-based anti-fraud provision of the federal securities laws, including, but not limited
to, Section 17(a)(1) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Section 206(1) of
the Advisers Act or any other rule or regulation thereunder; or (ii) Section 5 of the Securities Act;



 


		(o)	[he/she/it] has never been named as an underwriter in any registration statement or Regulation A offering statement filed with
the SEC that was the subject of a refusal order, stop order, or order suspending the Regulation A exemption, or is, currently,
the subject of an investigation or proceeding to determine whether a stop order or suspension order should be issued;



 


		(p)	[he/she/it] has never been subject to a United States Postal Service false representation order, or is currently subject to
a temporary restraining order or preliminary injunction with respect to conduct alleged by the United States Postal Service to
constitute a scheme or device for obtaining money or property through the mail by means of false representations;



 


		(q)	[he/she/it] is not subject to a final order of a state securities commission (or an agency of officer of a state performing
like functions); a state authority that supervises or examines banks, savings associations, or credit unions; a state insurance
commission (or an agency or officer of a state performing like functions); an appropriate federal banking agency; the CFTC; or
the National Credit Union Administration that bars the undersigned from: (i) association with an entity regulated by such commission,
authority, agency or officer; (ii) engaging in the business of securities, insurance or banking; or (iii) engaging in savings association
or credit union activities;



 






     


     


    

 


		(r)	[he/she/it] is not subject to an order of the SEC entered pursuant to section 15(b) or 15B(c) of the Securities Exchange Act
of 1934 (the “Exchange Act”) or section 203(e) or 203(f) of the Investment Advisers Act of 1940 (the “Advisers
Act”) that: (i) suspends or revokes the undersigned’s registration as a broker, dealer, municipal securities dealer
or investment adviser; (ii) places limitations on the activities, functions or operations of, or imposes civil money penalties
on, such person; or (iii) bars the undersigned from being associated with any entity or from participating in the offering of any
penny stock; and



 


		(s)	[he/she/it] has never been suspended or expelled from membership in, or suspended or barred from association with a member
of, a securities self-regulatory organization (e.g., a registered national securities exchange or a registered national or affiliated
securities association) for any act or omission to act constituting conduct inconsistent with just and equitable principles of
trade.



 


10.       The
undersigned has full right and power, without violating any agreement by which [he/she/it] is bound, to enter into this letter
agreement[ and to serve as a [Director] [and officer] of the Company].


 


11.       The
undersigned hereby waives [his/her/its] right to exercise conversion rights with respect to any Ordinary Shares owned or to be
owned by the undersigned, directly or indirectly, whether purchased by the undersigned prior to the IPO, in the IPO or in the aftermarket,
and agrees that [he/she/it] will not seek conversion with respect to or otherwise sell, such shares in connection with any vote
to approve a Business Combination with respect thereto or a vote to amend the provisions of the Company’s Amended and Restated
Memorandum and Articles of Association.


 


12.       The
undersigned hereby agrees to not propose, or vote in favor of, an amendment to the Company’s Amended and Restated Memorandum
and Articles of Association with respect to the Company’s pre-Business Combination activities prior to the consummation of
a Business Combination unless the Company offers dissenting holders the right to receive their pro rata portion of the funds then
held in the Trust Fund.


 


13.       In
connection with Section 5-1401 of the General Obligations Law of the State of New York, this letter agreement shall be governed
by, and construed in accordance with, the laws of the State of New York without regard to principles of conflicts of law that would
result in the application of the substantive law of another jurisdiction. The parties hereto agree that any action, proceeding
or claim arising out of or relating in any way to this letter agreement shall be resolved through final and binding arbitration
in accordance with the International Arbitration Rules of the American Arbitration Association (“AAA”). The arbitration
shall be brought before the AAA International Center for Dispute Resolution’s offices in New York City, New York, will be
conducted in English and will be decided by a panel of three arbitrators selected from the AAA Commercial Disputes Panel and that
the arbitrator panel’s decision shall be final and enforceable by any court having jurisdiction over the party from whom
enforcement is sought. The cost of such arbitrators and arbitration services, together with the prevailing party’s legal
fees and expenses, shall be borne by the non-prevailing party or as otherwise directed by the arbitrators.


 






     


     


    

 


14.       As
used herein, (i) a “Business Combination” shall mean a merger, share exchange, asset acquisition, stock
purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities; (ii)
“Insiders” shall mean all officers, directors and shareholders of the Company immediately prior to the
IPO; (iii) “Insider Shares” shall mean all of the Ordinary Shares of the Company acquired by an Insider
prior to the IPO and any Ordinary Shares underlying the Private Units; (iv) “IPO Shares” shall mean the
Ordinary Shares issued in the Company’s IPO; (v) “Private Units” shall mean (x) the Units purchased
in the private placement taking place simultaneously with the consummation of the Company’s IPO and (y) the additional Units
that may be purchased in connection with the exercise of the over-allotment option by the underwriters in the IPO as described
in the Registration Statement; (vi) “Registration Statement” means the registration statements on Form
S-1 filed by the Company with respect to the IPO; and (vii) “Trust Fund” shall mean the trust fund into
which a portion of the net proceeds of the Company’s IPO will be deposited.


 


15.       Any
notice, consent or request to be given in connection with any of the terms or provisions of this letter agreement shall be in writing
and shall be sent by express mail or similar private courier service, by certified mail (return receipt requested), by hand delivery
or facsimile transmission.


 


If to the Representative:


 


EarlyBirdCapital, Inc.


366 Madison Avenue, 8th Floor


New York, NY 10017


Attn: Steven Levine


Facsimile: (212) 661-4936


 


If to the Company:


 


CM Seven Star Acquisition Corporation


Suite 1003-1004, 10/F, ICBC Tower


Three Garden Road, Central, Hong Kong


Attn: Bing Lin


 






     


     


    

 


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


 


Loeb & Loeb LLP


345 Park Avenue


New York, NY 10154


Attn: Giovanni Caruso, Esq.


Facsimile: (212) 407-4990


 


16.       No
party hereto may assign either this letter agreement or any of its rights, interests, or obligations hereunder without the prior
written consent of the other party. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall
not operate to transfer or assign any interest or title to the purported assignee. This letter agreement shall be binding on the
parties hereto and any successors and assigns thereof.


 


17.       The
undersigned acknowledges and understands that the Underwriters and the Company will rely upon the agreements, representations and
warranties set forth herein in proceeding with the IPO.


 




     


     


    

 


	 	 
	 	 Print
    Name of Insider







 





	 	 
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