Document:

EXHIBIT
      10.1

     

    

    

    

    September
      26, 2006

    

    

    China
      Fortune Acquisition Corp.

    Jinmao
      Tower

    88
      Century Boulevard, Suite 4403

    Pudong,
      Shanghai

    People’s
      Republic of China 200121

    

     

    EarlyBirdCapital,
      Inc.

    275
      Madison Avenue

    Suite
      1203

    New
      York,
      New York 10016

    

    
      	 	 	
              Re:

            	
              Initial
                Public Offering

            

    

    

    Gentlemen:

    

    The
      undersigned shareholder, officer and direc-tor of China Fortune Acquisition
      Corp. (“Company”), in consideration of EarlyBirdCapital, Inc. (“EBC”) entering
      into a letter of intent (“Letter of Intent”) to underwrite an initial public
      offering of the securities of the Company (“IPO”) and embarking on the IPO
      process, hereby agrees as follows (certain capitalized terms used herein are
      defined in paragraph 14 hereof):

    

    1. If
      the
      Company solicits approval of its shareholders of a Business Combination, the
      undersigned will vote all Insider Shares owned by him in accordance with the
      majority of the votes cast by the holders of the IPO Shares. 

    

    2. In
      the
      event that the Company fails to consummate a Business Combination within 24
      months from the effective date (“Effective Date”) of the registration statement
      relating to the IPO, the undersigned will (i) cause the Trust Fund (as defined
      in the Letter of Intent) to be liquidated and distributed to the holders of
      IPO
      Shares and (ii) take all reasonable actions within his power to cause the
      Company to liquidate as soon as reasonably practicable. 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

    
      
         

      

      
         

        
          

        

      

      
         

        China
          Fortune Acquisition Corp.

        EarlyBirdCapital,
          Inc.

        September
          26, 2006

        Page
          2

      

    

    Insider
      Shares and shares acquired by him privately from the Company simultaneously
      with
      the IPO (“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. In the event of the liquidation of the Trust Fund, the undersigned
      agrees to indemnify and hold harmless the Company, pro rata with the holders
      of
      the Insider Shares based on the number of Insider Shares held by each such
      individuals, 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 vendor or other
      person who is owed money by the Company for services rendered or products sold
      or contracted for, or by any target business, but only to the extent necessary
      to ensure that such loss, liability, claim, damage or expense does not reduce
      the amount in the Trust Fund.

    

    3. In
      order
      to minimize potential conflicts of inter-est 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 an operating business, until the earlier of the
      consummation by the Company of a Business Combination, the liquidation of the
      Company or until such time as the undersigned ceases to be an officer or
      director of the Company, subject to any pre-existing fiduciary and contractual
      obligations the undersigned might have.

    

    4. The
      undersigned acknowledges and agrees that the Company will not consummate any
      Business Combination which involves a company which is affiliated with any
      of
      the Insiders unless
      the Company obtains an opinion from an independent investment banking firm
      reasonably acceptable to EBC that the business combination is fair to the
      Company’s shareholders from a financial perspective.

     

    5. Neither
      the undersigned, any member of the family of the undersigned, nor any affiliate
      (“Affiliate”) of the undersigned will be entitled to receive and will not accept
      any compensation for services rendered to the Company prior to or in connection
      with the consummation of the Business Combination; provided that commencing
      on
      the Effective Date, Cathay Fortune Corp. (“Related Party”), shall be allowed to
      charge the Company $7,500 per month, representing an allocable share of Related
      Party’s overhead, to compensate it for the Company’s use of Related Party’s
      offices, utilities and personnel. Related Party and the undersigned shall also
      be entitled to reimbursement from the Company for their out-of-pocket expenses
      incurred in connection with seeking and consummating a Business Combination.
       

     

    
      
         

      

      
         

        
          

        

      

      
         

        China
          Fortune Acquisition Corp.

        EarlyBirdCapital,
          Inc.

        September
          26, 2006

        Page
          3

      

    

    6. 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. 

    

    7. On
      the
      Effective Date, the undersigned will escrow half of his Insider Shares acquired
      prior to the IPO until nine months after the Company consummates a Business
      Combination and will escrow the remaining half of his Insider Shares acquired
      prior to the IPO until one year after the Company consummates a Business
      Combination subject 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.

    

    8. The
      undersigned agrees to be the Chairman of the Board and Chief Executive Officer
      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 furnished to the Company and EBC and attached hereto
      as
      Exhibit A is true and accurate in all respects, does not omit any material
      information with respect to the undersigned’s background 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 Questionnaire
      furnished to the Company and EBC and annexed as Exhibit B hereto is true
      and accurate in all respects. The undersigned represents and warrants
      that:

    

    (a) he
      is not
      subject to, or a respondent in, any legal action for, any injunction,
      cease-and-desist order or order or stipulation to desist or refrain from any
      act
      or practice relating to the offering of securities in any
      jurisdiction;

    

    (b) he
      has
      never been convicted of or pleaded guilty to any crime (i) involving any fraud
      or (ii) relating to any financial transaction or handling of funds of another
      person, or (iii) pertaining to any dealings in any securities and he is not
      currently a defendant in any such criminal proceeding; and

    

    (c) he
      has
      never been suspended or expelled from membership in any securities or
      commodities exchange or association or had a securities or commodities license
      or registration denied, suspended or revoked.

    

    9. The
      undersigned has full right and power, without violating any agreement by which
      he is bound, to enter into this letter agreement and to serve
      as

    
      
         

      

      
         

        
          

        

      

      
         

        China
          Fortune Acquisition Corp.

        EarlyBirdCapital,
          Inc.

        September
          26, 2006

        Page
          4

      

    

    Chairman
      of the Board and Chief Executive Officer of the Company.

    

    10. The
      undersigned hereby waives his right to exercise conversion rights or appraisal
      rights with respect to any Ordinary Shares of the Company owned or to be owned
      by the undersigned, directly or indirectly, and agrees that he will not seek
      conversion or appraisal with respect to such shares in connection with any
      vote
      to approve a Business Combination.

    

    11. The
      undersigned hereby agrees to not propose, or vote in favor of, an amendment
      to
      the Company’s Memorandum and Articles of Association to extend the period of
      time in which the Company must consummate a Business Combination prior to its
      liquidation. Should such a proposal be put before shareholders other than
      through actions by the undersigned, the undersigned hereby agrees to vote
      against such proposal. This paragraph may not be modified or amended under
      any
      circumstances.

    

    12. 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, pro rata with the holders of the Insider Shares based on
      the
      number of Insider Shares held by each such individuals, and agrees not to seek
      repayment for such expenses.

    

    13. The
      undersigned authorizes any employer, financial institution, or consumer credit
      reporting agency to release to EBC and its legal representatives or agents
      (including any investigative search firm retained by EBC) any information they
      may have about the undersigned’s background and finances (“Information”).
      Neither EBC nor its agents shall be violating the undersigned’s right of privacy
      in any manner in requesting and obtaining the Information and the undersigned
      hereby releases them from liability for any damage whatsoever in that
      connection.

    

    14. This
      letter agreement shall be governed by and construed and enforced in accor-dance
      with 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
      undersigned hereby (i) agrees that any action, proceeding or claim against
      him
      arising out of or relating in any way to this letter agreement (a “Proceeding”)
      shall be brought and enforced in the courts of the State of New York of the
      United States of America for the Southern District of New York, and irrevocably
      submits to such jurisdiction, which jurisdiction shall be exclu-sive, (ii)
      waives any objection to such exclusive jurisdiction and that such courts
      represent an inconvenient forum and (iii) irrevocably agrees to appoint Graubard
      Miller as agent for the service of process in the State of New York to receive,
      for the undersigned and on his behalf, service of process in

    
      
         

      

      
         

        
          

        

      

      
         

        China
          Fortune Acquisition Corp.

        EarlyBirdCapital,
          Inc.

        September
          26, 2006

        Page
          5

      

    

    any
      Proceeding. If for any reason such agent is unable to act as such, the
      undersigned will promptly notify the Company and EBC and appoint a substitute
      agent acceptable to each of the Company and EBC within 30 days and nothing
      in
      this letter will affect the right of either party to serve process in any other
      manner permitted by law.  

    

    15. As
      used
      herein, (i) a “Business Combination” shall mean the acquisition, through a stock
      exchange, asset acquisition or other similar business combination, of an
      operating business, or control of such operating business, through contractual
      arrangements, that has its principal operations located in the People’s Republic
      of China; (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 shares of Common Stock of the Company acquired by an Insider prior to
      the
      IPO; and (iv) “IPO Shares” shall mean the shares of Common Stock issued in the
      Company’s IPO.

    

    Bo
      Yu

    Print
      Name of Insider

    

    

    

    /s/
      Bo
      Yu

    Signature

    

    
      
         

      

      
         

        
          

        

      

      
         

         

      

    

    Exhibit
      A

    

    Bo
      Yu
      has been
      our chairman of the board and chief executive officer since our inception.
      Mr.
      Yu founded Cathay Fortune Corp. in July 2003 and has served as its chairman
      of
      the management committee and chief executive officer since that date. From
      December 2001 to July 2003, Mr. Yu was the chairman of the management committee
      of China Fortune Securities Co., Ltd., a leading privately owned broker-dealer
      in China. From May 1997 to July 2003, Mr. Yu served as the chairman of the
      board
      of Beijing Leader Investment Corp., Ltd., a private derivatives trading and
      assets management firm. From June 1990 to August 1998, Mr. Yu was the founder
      and the chairman of the board of Dalian DongLi Artistic Textile Co., Ltd.,
      a
      privately owned textile manufacturer. From 1985 to 1990, Mr. Yu held various
      positions at the Municipal Tax Bureau of Dalian City.EXHIBIT
      10.2

     

    

    

    

    September
      26, 2006

    

    

    China
      Fortune Acquisition Corp.

    Jinmao
      Tower

    88
      Century Boulevard, Suite 4403

    Pudong,
      Shanghai

    People’s
      Republic of China 200121

    

     

    EarlyBirdCapital,
      Inc.

    275
      Madison Avenue

    Suite
      1203

    New
      York,
      New York 10016

    

    
      	 	 	
              Re:

            	
              Initial
                Public Offering

            

    

    

    Gentlemen:

    

    The
      undersigned shareholder, officer and direc-tor of China Fortune Acquisition
      Corp. (“Company”), in consideration of EarlyBirdCapital, Inc. (“EBC”) entering
      into a letter of intent (“Letter of Intent”) to underwrite an initial public
      offering of the securities of the Company (“IPO”) and embarking on the IPO
      process, hereby agrees as follows (certain capitalized terms used herein are
      defined in paragraph 14 hereof):

    

    1. If
      the
      Company solicits approval of its shareholders of a Business Combination, the
      undersigned will vote all Insider Shares owned by him in accordance with the
      majority of the votes cast by the holders of the IPO Shares. 

    

    2. In
      the
      event that the Company fails to consummate a Business Combination within 24
      months from the effective date (“Effective Date”) of the registration statement
      relating to the IPO, the undersigned will (i) cause the Trust Fund (as defined
      in the Letter of Intent) to be liquidated and distributed to the holders of
      IPO
      Shares and (ii) take all reasonable actions within his power to cause the
      Company to liquidate as soon as reasonably practicable. 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

    
      
         

         

      

      
         

        
          

        

      

      
         

        China
          Fortune Acquisition Corp.

        EarlyBirdCapital,
          Inc.

        September
          26, 2006

        Page
          2

      

    

    Insider
      Shares (“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. In the event of the liquidation of the Trust Fund, the undersigned
      agrees to indemnify and hold harmless the Company, pro rata with the holders
      of
      the Insider Shares based on the number of Insider Shares held by each such
      individuals, 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 vendor or other
      person who is owed money by the Company for services rendered or products sold
      or contracted for, or by any target business, but only to the extent necessary
      to ensure that such loss, liability, claim, damage or expense does not reduce
      the amount in the Trust Fund.

    

    3. In
      order
      to minimize potential conflicts of inter-est 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 an operating business, until the earlier of the
      consummation by the Company of a Business Combination, the liquidation of the
      Company or until such time as the undersigned ceases to be an officer or
      director of the Company, subject to any pre-existing fiduciary and contractual
      obligations the undersigned might have.

    

    4. The
      undersigned acknowledges and agrees that the Company will not consummate any
      Business Combination which involves a company which is affiliated with any
      of
      the Insiders unless
      the Company obtains an opinion from an independent investment banking firm
      reasonably acceptable to EBC that the business combination is fair to the
      Company’s shareholders from a financial perspective.

     

    5. Neither
      the undersigned, any member of the family of the undersigned, nor any affiliate
      (“Affiliate”) of the undersigned will be entitled to receive and will not accept
      any compensation for services rendered to the Company prior to or in connection
      with the consummation of the Business Combination; provided that commencing
      on
      the Effective Date, Cathay Fortune Corp. (“Related Party”), shall be allowed to
      charge the Company $7,500 per month, representing an allocable share of Related
      Party’s overhead, to compensate it for the Company’s use of Related Party’s
      offices, utilities and personnel. Related Party and the undersigned shall also
      be entitled to reimbursement from the Company for their out-of-pocket expenses
      incurred in connection with seeking and consummating a Business Combination.
       

     

    6. Neither
      the undersigned, any member of the family of the

    
      
         

         

      

      
         

        
          

        

      

      
         

        China
          Fortune Acquisition Corp.

        EarlyBirdCapital,
          Inc.

        September
          26, 2006

        Page
          3

      

    

    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. 

    

    7. On
      the
      Effective Date, the undersigned will escrow half of his Insider Shares acquired
      prior to the IPO until nine months after the Company consummates a Business
      Combination and will escrow the remaining half of his Insider Shares acquired
      prior to the IPO until one year after the Company consummates a Business
      Combination subject 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.

    

    8. The
      undersigned agrees to be the Secretary, Treasurer and a Director 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
      furnished to the Company and EBC and attached hereto as Exhibit A is true and
      accurate in all respects, does not omit any material information with respect
      to
      the undersigned’s background 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 Questionnaire furnished to the Company
      and EBC and annexed as Exhibit B hereto is true and accurate in all
      respects. The undersigned represents and warrants that:

    

    (a) he
      is not
      subject to, or a respondent in, any legal action for, any injunction,
      cease-and-desist order or order or stipulation to desist or refrain from any
      act
      or practice relating to the offering of securities in any
      jurisdiction;

    

    (b) he
      has
      never been convicted of or pleaded guilty to any crime (i) involving any fraud
      or (ii) relating to any financial transaction or handling of funds of another
      person, or (iii) pertaining to any dealings in any securities and he is not
      currently a defendant in any such criminal proceeding; and

    

    (c) he
      has
      never been suspended or expelled from membership in any securities or
      commodities exchange or association or had a securities or commodities license
      or registration denied, suspended or revoked.

    

    9. The
      undersigned has full right and power, without violating any agreement by which
      he is bound, to enter into this letter agreement and to serve as Secretary,
      Treasurer and a Director of the Company.

    
      
         

         

      

      
         

        
          

        

      

      
         

        China
          Fortune Acquisition Corp.

        EarlyBirdCapital,
          Inc.

        September
          26, 2006

        Page
          4

      

    

    

    10. The
      undersigned hereby waives his right to exercise conversion rights or appraisal
      rights with respect to any Ordinary Shares of the Company owned or to be owned
      by the undersigned, directly or indirectly, and agrees that he will not seek
      conversion or appraisal with respect to such shares in connection with any
      vote
      to approve a Business Combination.

    

    11. The
      undersigned hereby agrees to not propose, or vote in favor of, an amendment
      to
      the Company’s Memorandum and Articles of Association to extend the period of
      time in which the Company must consummate a Business Combination prior to its
      liquidation. Should such a proposal be put before shareholders other than
      through actions by the undersigned, the undersigned hereby agrees to vote
      against such proposal. This paragraph may not be modified or amended under
      any
      circumstances.

    

    12. 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, pro rata with the holders of the Insider Shares based on
      the
      number of Insider Shares held by each such individuals, and agrees not to seek
      repayment for such expenses.

    

    13. The
      undersigned authorizes any employer, financial institution, or consumer credit
      reporting agency to release to EBC and its legal representatives or agents
      (including any investigative search firm retained by EBC) any information they
      may have about the undersigned’s background and finances (“Information”).
      Neither EBC nor its agents shall be violating the undersigned’s right of privacy
      in any manner in requesting and obtaining the Information and the undersigned
      hereby releases them from liability for any damage whatsoever in that
      connection.

    

    14. This
      letter agreement shall be governed by and construed and enforced in accor-dance
      with 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
      undersigned hereby (i) agrees that any action, proceeding or claim against
      him
      arising out of or relating in any way to this letter agreement (a “Proceeding”)
      shall be brought and enforced in the courts of the State of New York of the
      United States of America for the Southern District of New York, and irrevocably
      submits to such jurisdiction, which jurisdiction shall be exclu-sive, (ii)
      waives any objection to such exclusive jurisdiction and that such courts
      represent an inconvenient forum and (iii) irrevocably agrees to appoint Graubard
      Miller as agent for the service of process in the State of New York to receive,
      for the undersigned and on his behalf, service of process in any Proceeding.
      If
      for any reason such agent is unable to act as such, the undersigned
      will

    
      
         

         

      

      
         

        
          

        

      

      
         

        China
          Fortune Acquisition Corp.

        EarlyBirdCapital,
          Inc.

        September
          26, 2006

        Page
          5

      

    

    promptly
      notify the Company and EBC and appoint a substitute agent acceptable to each
      of
      the Company and EBC within 30 days and nothing in this letter will affect the
      right of either party to serve process in any other manner permitted by law.
       

    

    15. As
      used
      herein, (i) a “Business Combination” shall mean the acquisition, through a stock
      exchange, asset acquisition or other similar business combination, of an
      operating business, or control of such operating business, through contractual
      arrangements, that has its principal operations located in the People’s Republic
      of China; (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 shares of Common Stock of the Company acquired by an Insider prior to
      the
      IPO; and (iv) “IPO Shares” shall mean the shares of Common Stock issued in the
      Company’s IPO.

    

    Gang
      Chen

    Print
      Name of Insider

    

    

    

    /s/
      Gang Chen

    Signature

    

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

        
           

        

      

    

    Exhibit
      A

    

    Gang
      (Gary) Chen has
      been
      our secretary, treasurer and director since our inception. Mr.
      Chen
      has served as a managing director of Cathay Fortune since October 2003. From
      September 2002 to October 2003, Mr. Chen served as a senior manager of the
      investment banking department at Debang Securities Co., Ltd., a leading
      privately owned broker-dealer in China. From August 2000 to August 2002, Mr.
      Chen worked as a research assistant for the Financial and Real Estate Department
      of Wharton Business School at the University of Pennsylvania. From July 1997
      to
      August 2000, Mr. Chen served as a manager of Teda Real Estate Group, a Chinese
      real estate company. Mr. Chen received a B.A. from Peking University and a
      M.A.
      from the University of Pennsylvania.

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