HOW DO I LOAD MAC OS LION ONTO AN OLDER iMAC (2010) WITHOUT THE ADMIN PASSWORD.

I purchased MAC OS LION (version 1.0.4) (multi user) from APPLE about 4 months ago. The OS LION came on a thumb drive that is used to load it on multiple computers instead of having to down loading it off the APPLE website. I have only loaded one version of LION onto one computer so far.
I want to load the LION on a used iMAC(about 2-years old) I recently purchased but can't because I don't have the previous owners ADMIN password.
I don't have the original disc that came with the iMAC either. The OS currently on the iMAC is Snow Leopard 10.6.8
I do not care about any data that the previous owner had on the hard drive which isn't much so I would be glad to install MAC OS LION from scratch and erase/reformat the hard drive. Doing this I presume I can then create my own Admin password .
I believe there is a procedure where you hold down certain keys at startup which will allow you to clear the HD and install the new OS but I am unaware of the key sequence. Nor am I sure if this will work with the THUMBRIVEn or if you need an actual disc.
If anyone can give me direction on how I can load the OS LION from the thumb drive when I start the computer up so I can reformat/erase the HD I would greatly appreciate it.
Thanks for any help you can give me

If the password you are talking about is the EFI boot password the only way to bypass and or remove it is to take the system to Apple.
If it is a User Log On password then just boot the computer from that thumb drive open Disk Utility and Re-Partition the internal drive as ONE partition. then exit out of DU and select Reinstall Mac OS X.
Once that is done it will boot to a fresh clean install of Lion ready to be setup with new user account and password.

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HOW DO I LOAD MAC OS LION ONTO AN OLDER iMAC (2010) WITHOUT THE ADMIN PASSWORD.

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