Document:

EX-10.1

 

Exhibit 10.1

          , 2007

Lumax Acquisition Corp.

509 Madison Ave., Suite 1510

New York, NY 10022

Capital Growth Financial, LLC

225 NE Mizner Boulevard, Suite 750

Boca Raton, FL 33432

Re: Initial Public Offering

Ladies and Gentlemen:

     Each of the undersigned officers, directors and stockholders of Lumax Acquisition Corp. (the
"Company”), in consideration of Capital Growth Financial, LLC (the “Underwriter”) consummating the
transactions contemplated by the underwriting agreement dated as of           , 2007
between the Company and the Underwriter (the “Underwriting Agreement”) relating to the Company’s
initial public offering (the “IPO”), hereby severally and jointly agree as follows (certain
capitalized terms used herein are defined in paragraph 12 hereof):

     1. If the Company solicits approval of its stockholders for an Initial Transaction, each of
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 and all shares of Company Common Stock acquired by him
in the IPO or in the aftermarket in favor of the Initial Transaction.

     2. Each of the undersigned will escrow his Insider Shares until one year after the date of the
consummation of an Initial Transaction, subject to the terms of a Stock Escrow Agreement which the
Company will enter into with the undersigned and Continental Stock Transfer & Trust Company as
escrow agent.

     3. If the Company fails to consummate an Initial Transaction within 18 months from the initial
closing of the IPO (or 24 months under the circumstances described in the prospectus relating to
the IPO (the “Prospectus”)), each of the undersigned will take all reasonable actions within his
power to cause the Company to liquidate as soon as reasonably practicable. Each of the undersigned
hereby waives any and all right, title, interest or claim of any kind (a “Claim”) in or to any
distribution of the amount on deposit in the trust account at           (as described
in the Prospectus) with respect to his Insider Shares and 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 to or
against the trust account and will not seek recourse against the trust account for any reason
whatsoever, in each case except in connection with exercising his rights with respect to any shares
of Company common stock acquired by him in the IPO or in the aftermarket. Each of the undersigned
(severally and not jointly) 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 paid in investigating, preparing or defending against any
litigation, whether pending or threatened, or any claim whatsoever) which the Company may become
subject to as a result of any claim by any vendor that is owed money by the Company for services
rendered or products sold (the “Loss”) but only to the extent necessary to ensure that the Loss
does not

 

 

reduce the amount in the trust account; provided, however, that each of the undersigned shall only
be liable (severally and not jointly) for fifty percent of the total Loss. Nothing contained
herein shall be construed to suggest that the undersigned may be held personally liable for any
loss, liability claims, damage or expense which the Company may become subject to as a result of
any claim by a prospective target if an Initial Transaction is not consummated with that
prospective target, or for claims from any entity other than vendors.

     4. In order to minimize potential conflicts of interest which may arise from multiple
affiliations, each of the undersigned agrees to present to the Company for its consideration, prior
to presentation to any other person or entity, any suitable opportunity which may reasonably be
required to be presented to the Company under Delaware law, until the earliest of the consummation
by the Company of an Initial Transaction, the liquidation of the Company and such time as the
undersigned ceases to be an officer of the Company, subject to any pre-existing fiduciary
obligations any of the undersigned might have.

     5. Each of the undersigned acknowledges and agrees that the Company will not consummate any
Initial Transaction which involves a company which is affiliated with any of the Insiders unless
the Company obtains an opinion from an independent investment banking firm that the Initial
Transaction is fair to the Company’s stockholders from a financial point of view.

     6. Prior to the consummation of a Business Combination (as defined in the Company’s
Certificate of Incorporation, as amended (the “Certificate of Incorporation”)), none of the
undersigned will vote in favor of or otherwise consent to any amendment or waiver of any of the
provisions of Article Fifth of the Certificate of Incorporation.

     7. Neither the undersigned, any member of the family of the undersigned or 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 an Initial Transaction.

     8. Each of the undersigned intends to devote a minimum of forty percent of his business time
(on average) each month on pursuing the Initial Transaction. The undersigned’s biographical
information furnished to the Company and the Underwriter 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 Section 401 of Regulation S-K, promulgated
under the Securities Act of 1933. The undersigned’s questionnaires furnished to the Company and
the Underwriter are 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,
(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. Each of 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 an executive officer and director
of the Company as contemplated by the Prospectus.

     10. None of the undersigned, any member of the family of any of the undersigned nor any
affiliate of any of the undersigned will be entitled to receive and will not accept any
compensation for services rendered to the Company prior to the consummation of the Initial
Transaction; provided that commencing on the Effective Date, SeaView Capital Advisors, LLC
(“Related Party”), shall be allowed to charge the Company a portion of Related Party’s overhead,
$7,500 per month, to compensate it for certain limited administrative, technology and secretarial
services, as well as the use of certain limited office space located at 509 Madison Ave., Suite
1510, New York, NY 10022, that it will provide to the Company. Related Party and each of the
undersigned shall also be entitled to reimbursement from the Company for their out-of-pocket
expenses incurred in connection with activities on the Company’s behalf, including, without
limitation, seeking, performing due diligence on and consummating an Initial Transaction.

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

     12. As used herein, (i) an “Initial Transaction” shall mean an acquisition by merger, capital
stock exchange, asset or stock acquisition or other similar business combination of one or more
operating business or businesses, or a series of such transactions, that has a fair market value of
at least 80% of the Company’s net worth at the time of such transaction; (ii) “Insiders” shall mean
all officers, directors and stockholders of the Company immediately prior to the IPO; (iii)
“Insider Shares” shall mean all of the shares of Common Stock of the Company owned by an Insider
prior to the IPO and (iv) “IPO Shares” shall mean the shares of Common Stock issued in the
Company’s IPO.

[Remainder of Page Intentionally Left Blank.]

 

 

     IN WITNESS WHEREOF, each of the undersigned has executed this Letter Agreement as of the date
first written above.

	 	 	 
	 
	 	 
	 

	 	 
	 

	 	Name: Scott W. Hartman
	 
	 	 
	 
	 	 
	 

	 	 
	 

	 	Name: David S. Montoya

[SIGNATURE PAGE TO LETTER AGREEMENT]EX-10.5

 

Exhibit 10.5

Lumax Acquisition Corp.

                    , 2007

SeaView Capital Advisors, LLC

509 Madison Avenue, Suite 1510

New York, New York 10022

Ladies and Gentlemen:

     This letter will confirm our agreement that, commencing on the effective date (the “Effective
Date”) of the registration statement for the initial public offering (“IPO”) of the securities of
Lumax Acquisition Corp. (the “Company”) and continuing until the consummation by the Company of a
business combination (as described in the Company’s IPO prospectus), SeaView Capital Advisors, LLC
or its affiliates shall make available to the Company certain limited administrative, technology
and secretarial services, as well as the use of certain limited office space, as may be required by
the Company from time to time, situated at 509 Madison Avenue, Suite 1510, New York, New York 10022
(or any successor location).

     In exchange therefor, the Company shall pay SeaView Capital Advisors, LLC the sum of $7,500
per month on the Effective Date and continuing monthly thereafter until the consummation of a
business combination.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	Lumax Acquisition Corp.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

AGREED TO AND ACCEPTED BY:

SeaView Capital Advisors, LLC

			
	By:	 	
 
Name:
Title:

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