Document:

Exhibit 10.5

 

As
of _________, 2019                   

 

Gentlemen:

 

LGL
Systems Acquisition Corp. (“Corporation”), a blank check company formed for the purpose of acquiring one or more businesses
or entities (a “Business Combination”), intends to register its securities under the Securities Act of 1933, as amended
(“Securities Act”), in connection with its initial public offering (“IPO”).

 

The
undersigned hereby commits to purchase an aggregate of 4,250,000 warrants of the Corporation (“Initial Warrants”),
each Initial Warrant to purchase one share of Class A common stock, par value $0.0001 per share, of the Corporation at $1.00 per
Initial Warrant, for an aggregate purchase price of $4,250,000 (the “Initial Purchase Price”). Additionally, if the
underwriters in the IPO exercise their over-allotment option in full or part, the undersigned further commits to purchase up to
an additional 375,000 warrants (“Additional Warrants” and together with the Initial Warrants, the “Private Warrants”)
at $1.00 per Additional Warrant for an aggregate purchase price of up to $375,000 (the “Over-Allotment Purchase Price”
and together with the Initial Purchase Price, the “Purchase Price”). At least 24 hours prior to the effective date
(“Effective Date”) of the Corporation’s registration statement filed in connection with the IPO (“Registration
Statement”), the undersigned will cause the Purchase Price to be delivered to Graubard Miller, counsel for the Corporation
(“Counsel”), by wire transfer as set forth in the instructions attached as Exhibit A to hold in a non-interest bearing
account until the Corporation consummates the IPO.

 

The
consummation of the purchase and issuance of the Initial Warrants and Additional Warrants (if any) shall occur simultaneously
with the consummation of the IPO and over-allotment option, respectively. Simultaneously with the consummation of the IPO, Counsel
shall deposit the Initial Purchase Price, without interest or deduction, into the trust fund (“Trust Fund”) established
by the Corporation for the benefit of the Corporation’s public shareholders as described in the Registration Statement.
Simultaneously with the consummation of all or any part of the over-allotment option, Counsel shall deposit the pro-rata portion
of the Over-Allotment Purchase Price, based upon the amount of the over-allotment option that has been exercised, without interest
or deduction, into the Trust Fund. Upon expiration of the over-allotment option, Counsel shall return any unused portion of the
Over-Allotment Purchase Price to the undersigned. If the Corporation does not complete the IPO within fourteen (14) days from
the Effective Date, the Purchase Price (without interest or deduction) will be returned to the undersigned.

 

Each
of the Corporation and the undersigned acknowledges and agrees that Counsel is serving hereunder solely as a convenience to the
parties to facilitate the purchase of the Private Warrants and Counsel’s sole obligation under this letter agreement is
to act with respect to holding and disbursing the Purchase Price for the Private Warrants as described above. Counsel shall not
be liable to the Corporation or the undersigned or any other person or entity in respect of any act or failure to act hereunder
or otherwise in connection with performing its services hereunder unless Counsel has acted in a manner constituting gross negligence
or willful misconduct. The Corporation and the undersigned, jointly and severally, shall indemnify Counsel against any claim made
against it (including reasonable attorney’s fees) by reason of it acting or failing to act in connection with this letter
agreement except as a result of its gross negligence or willful misconduct. Counsel may rely and shall be protected in acting
or refraining from acting upon any written notice, instruction or request furnished to it hereunder and believed by it to be genuine
and to have been signed or presented by the proper party or parties.

 

     

     

    

 

The
Private Warrants will be identical to the warrants included in the units to be sold by the Corporation in the IPO, except that:

 

		●	the
                                         Private Warrants will not be transferable (except to (a) to the Corporation’s officers
                                         or directors, any affiliate or family member of any of the Corporation’s officers
                                         or directors, any affiliate of the Corporation’s sponsor or to any member of the
                                         sponsor or any of their affiliates, (b) in the case of an individual, as a gift to such
                                         person’s immediate family or to a trust, the beneficiary of which is a member of
                                         such person’s immediate family, an affiliate of such person or to a charitable
                                         organization; (c) in the case of an individual, by virtue of laws of descent and distribution
                                         upon death of such person; (d) in the case of an individual, pursuant to a qualified
                                         domestic relations order; (e) by private sales or transfers made in connection with any
                                         forward purchase agreement or similar arrangement or in connection with the consummation
                                         of a Business Combination at prices no greater than the price at which the Private Warrants
                                         were originally purchased; (f) by virtue of the laws of the State of Delaware or the
                                         Corporation’s sponsor’s limited liability company agreement upon dissolution
                                         of the sponsor, (g) in the event of the Corporation’s liquidation prior to the
                                         consummation of an initial Business Combination; or (h) in the event that, subsequent
                                         to the consummation of an initial Business Combination, the Corporation completes a liquidation,
                                         merger, share exchange or other similar transaction which results in all of the Corporation’s
                                         stockholders having the right to exchange their Class A common stock for cash, securities
                                         or other property, in each case (except for clause (g) or with the Corporation’s
                                         prior consent) where the transferee agrees to these transfer restrictions) until 30 days
                                         after the completion of a Business Combination;

 

		●	the
                                         Private Warrants (and underlying securities) will be subject to customary registration
                                         rights, which shall be described in the Registration Statement;

 

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		●	the
                                         Private Warrants will not be redeemable and will be exercisable on a cashless basis so
                                         long as they are held by the undersigned or its permitted transferees; and

 

		●	the
                                         Private Warrants will include any additional terms or restrictions as is customary in
                                         other similarly structured blank check company offerings or as may be reasonably required
                                         by the underwriters in the IPO in order to consummate the IPO, each of which will be
                                         set forth in the Registration Statement.

 

The
undersigned hereby represents and warrants that:

 

		(a)	it
                                         has been advised that the Private Warrants have not been registered under the Securities
                                         Act;

 

		(b)	it
                                         is acquiring the Private Warrants for its account for investment purposes only;

 

		(c)	it
                                         has no present intention of selling or otherwise disposing of the Private Warrants in
                                         violation of the securities laws of the United States;

 

		(d)	it
                                         is an “accredited investor” as defined by Rule 501 of Regulation D promulgated
                                         under the Securities Act of 1933, as amended;

 

		(e)	it
                                         has had both the opportunity to ask questions and receive answers from the officers and
                                         directors of the Corporation and all persons acting on its behalf concerning the terms
                                         and conditions of the offer made hereunder;

 

		(f)	it
                                         is familiar with the proposed business, management, financial condition and affairs of
                                         the Corporation;

 

		(g)	it
                                         has full power, authority and legal capacity to execute and deliver this letter and any
                                         documents contemplated herein or needed to consummate the transactions contemplated in
                                         this letter; and

 

		(h)	this
                                         letter constitutes the legal, valid and binding obligation of the undersigned and is
                                         enforceable against it.

 

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	 	Very truly yours,
	 	 	 
	 	LGL Systems Acquisition
	 	Holding Company, LLC
	 	 	 
	 	By:	                              
	 	 	Name:
	 	 	Title:

 

	Accepted and Agreed:	 
	 	 	 
	LGL SYSTEMS ACQUISITION CORP.	 
	 	 	 
	By: 	 	 
	 	Name:	 
	 	Title:	 
	 	 	 
	Graubard miller	 
	(solely with respect to its obligations to hold	 
	and disburse monies for the Private Warrants)	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

    4

    

    

 

Exhibit
A

 

 

5Exhibit 10.6

 

LGL Systems Acquisition Corp.

165 W. Liberty St., Suite 220

Reno, NV 89501

 

_____________, 2019

 

LGL Systems Nevada Management Partners LLC

165 W. Liberty St., Suite 220

Reno, NV 89501

 

Ladies and Gentlemen:

 

This letter will confirm
our agreement that, commencing on the effective date (the “Effective Date”) of the registration statement
(the “Registration Statement”) for the initial public offering (the “IPO”)
of the securities of LGL Systems Acquisition Corp. (the “Company”) and continuing until the earlier of
(i) the consummation by the Company of an initial business combination or (ii) the Company’s liquidation (in each case as
described in the Registration Statement) (such earlier date hereinafter referred to as the “Termination Date”),
LGL Systems Nevada Management Partners LLC (the “Affiliate”) shall make available to the Company certain
office space, utilities and secretarial support as may be required by the Company from time to time, situated at 165 W. Liberty
St., Suite 220, Reno, NV 89501 (or any successor location). In exchange therefore, the Company shall pay the Affiliate the sum
of $10,000 per month on the Effective Date and continuing monthly thereafter until the Termination Date; provide, however, that
the Company may delay payment of such monthly fee upon a determination by the audit committee of the board of directors of the
Company that the Company lacks sufficient funds held outside of the Trust Account to pay actual or anticipated expenses in connection
with an initial business combination. Any such unpaid amount shall accrue without interest and either be due and payable no later
than the date of the Company’s initial business combination or at the Affiliate’s option, treated as working capital
loans and be convertible into warrants on terms identical to the private warrants (subject to the $1,500,000 maximum amount of
working capital loans convertible to warrants as described in Prospectus). If the Company does not consummate an initial business
combination, any accrued and unpaid amounts hereunder shall be forgiven. The Affiliate hereby agrees that it does not have any
right, title, interest or claim of any kind in or to any monies that may be set aside in a trust account (the “Trust
Account”) to be established upon the consummation of the IPO (the “Claim”) and hereby waives
any Claim it may have in the future as a result of, or arising out of, any negotiations, contracts or agreements with the Company
and will not seek recourse against the Trust Account for any reason whatsoever.

 

	 	Very truly yours,
	 	 
	 	LGL SYSTEMS ACQUISITION CORP.
	 	 	 
	 	By:	 
	 	 	Name:  
	 	 	Title:

 

AGREED TO AND ACCEPTED BY:

 

LGL SYSTEMS NEVADA
MANAGEMENT PARTNERS LLC

 

	By:	 	 
	 	Name:  	 
	 	Title:

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