Exhibit 10.1


 


March 8, 2022


 


Lakeshore Acquisition
II Corp.


667 Madison Avenue,


New York, NY 10065


 


	 	Re:	Initial Public Offering


 


Ladies and Gentlemen:


 


This letter (“Letter Agreement”)
is being delivered to you in accordance with the Underwriting Agreement (the “Underwriting Agreement”) entered
into by and between Lakeshore Acquisition II Corp., a Cayman Islands exempted company (the “Company”), and Network
1 Financial Group Inc. as the 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 Unit comprised of one ordinary share of the Company, par value
$0.0001 per share (the “Ordinary Shares”), one right to receive one-tenth of one Ordinary Share (each, a “Right”),
and one half of one warrant, with each whole warrant exercisable for one Ordinary Share (each, a “Warrant”).
Certain capitalized terms used herein are defined in paragraph 12 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, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned
hereby agrees, severally but not jointly, with the Company as follows:


 


1. If the Company solicits approval of its stockholders
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 the time period set forth in the Company’s Amended and Restated Memorandum and Articles
of Association, as the same may be amended from time to time (the “Articles of Association”), the undersigned
will, as promptly as possible, take all necessary actions to cause the Company to (i) cease all operations except for the purpose
of winding up, (ii) not more than five (5) business days thereafter, redeem the IPO shares, at a per-share price, payable in
cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned funds held in the Trust Account and
not previously released to the Company (less taxes payable and up to $50,000 of interest to pay dissolution expenses), divided by the
number of then outstanding IPO Shares, which redemption will extinguish public stockholders’ rights as stockholders (including the
right to receive further liquidation distributions, if any), and (iii) following such redemption, subject to the approval of the
Company’s remaining stockholders and the Company’s board of directors, liquidate and dissolve, subject in each case to the
Company’s obligations under Cayman Islands law to provide for claims of creditors and other requirements of applicable law.


 


(b) The undersigned hereby waives any and
all right, title, interest or claim of any kind in or to any distribution of the Trust Account (“Claim”) with
respect to the shares of Founders’ Ordinary Shares owned by the undersigned 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
Account for any reason whatsoever. The undersigned acknowledges and agrees that there will be no distribution from the Trust Account with
respect to any Warrants, all rights of which will terminate on the Company’s liquidation.


 






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3. 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, 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, that such Business Combination is fair to the Company’s unaffiliated stockholders from a financial point
of view.


 


4. Neither the undersigned nor any affiliate of
the undersigned will be entitled to receive and will not accept any compensation, finder fee or other cash payment prior to, or for services
rendered in order to effectuate, 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.”


 


5. (a) The undersigned agree that they shall
not Transfer any Founders’ Ordinary Shares (the “Founder Shares Lock-up”) until the earliest of (A) six (6) months
after the completion of an initial Business Combination and (B) the date following the completion of an initial Business Combination
on which the Company completes a liquidation, merger, share exchange or other similar transaction that results in all of the Company’s
shareholders having the right to exchange their Ordinary Shares for cash, securities or other property (the “Founder Shares Lock-up
Period”). Notwithstanding the foregoing, if, subsequent to a Business Combination, the closing price of the Ordinary Shares equals
or exceeds $12.00 per share (as adjusted for share sub-divisions, share capitalizations, share consolidations, reorganizations, recapitalizations
and the like) for any 20 trading days within a 30-trading day period commencing at least 150 days after the Company’s initial Business
Combination, the Founders’ Ordinary Shares shall be released from the Founder Shares Lock-up.


 


(b) The undersigned agree that they shall
not effectuate any Transfer of Private Securities or Ordinary Shares underlying such warrants until 30 days after the completion of an
initial Business Combination.


 


(c) Notwithstanding the provisions set forth
in paragraphs 5(a) and (b), Transfers of the Founders’ Ordinary Shares, Private Securities and Ordinary Shares underlying the
Private Securities are permitted (a) to the Company’s officers or directors, any affiliates or family members of any of the
Company’s officers or directors, any members or partners of our sponsor, RedOne Investment Limited (the “Sponsor”),
and the Representatives, or any of their affiliates or any employees of such affiliates; (b) in the case of an individual, by gift
to a member of one of the individual’s immediate family or to a trust, the beneficiary of which is a member of the individual’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 the individual; (d) in the case of an individual, pursuant to a qualified domestic relations
order; (e) by private sales or Transfers made in connection with the consummation of a Business Combination at prices no greater
than the price at which the Founders’ Ordinary Shares, Private Securities or Ordinary Shares, as applicable, were originally purchased;
(f) by virtue of the Sponsor’s or the Representatives’ organizational documents upon liquidation or dissolution of the
Sponsor or the Representatives, as applicable; (g) in the event of the Company’s liquidation prior to the completion of a Business
Combination; or (h) in the event of completion of a liquidation, merger, share exchange or other similar transaction which results
in all of the Company’s shareholders having the right to exchange their Ordinary Shares for cash, securities or other property subsequent
to the completion of an initial Business Combination; provided, however, that in the case of clauses (a) through (f) these permitted
transferees must enter into a written agreement agreeing to be bound by these Transfer restrictions and the other restrictions contained
in this Letter Agreement.


 


1 For Indemnifying Entity affiliate letter only.


 






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(d) During the period commencing on the effective
date of the Underwriting Agreement and ending 180 days after such date, the undersigned shall not, without the prior written consent of
the Representatives, Transfer any Units, Ordinary Shares, Warrants or any other securities convertible into, or exercisable or exchangeable
for, Ordinary Shares held by it, her or him, as applicable, except as permitted hereunder.


 


6. (a) In order to minimize potential
conflicts of interest that may arise from multiple corporate affiliations, the undersigned hereby agrees that until the earliest of
the Company’s initial Business Combination or liquidation, the undersigned shall present to the Company for its consideration,
prior to presentation to any other entity, any suitable target business, subject to any fiduciary or contractual obligations the
undersigned might have.


 


     (b) The
undersigned hereby agrees and acknowledges that (i) each of the Underwriters and the Company may be irreparably injured in the event
of a breach of any of the obligations contained in this Letter Agreement, (ii) monetary damages may not be an adequate remedy for
such breach and (iii) the non-breaching party shall be entitled to injunctive relief, in addition to any other remedy that such party
may have in law or in equity, in the event of such breach.


 


7. The undersigned’s biographical information
previously furnished to the Company and the Representatives 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. The undersigned’s FINRA Questionnaire previously furnished to the Company
and the Representatives is true and accurate in all respects. The undersigned represents and warrants that:2


 


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


 


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


 


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


 


	 	(d)	he/she 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 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 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;


 


2 For officer, director, and promoter letter only.


 






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	 	(f)	he/she 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 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 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 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 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 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 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 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 Commodity Futures Trading Commission; 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 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 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 has never been subject to any order of the SEC that orders him/her 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 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;


 






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	 	(p)	he/she 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 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 Commodity Futures Trading Commission; 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 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, as amended (the “Exchange Act”), or section 203(e) or 203(f) of the Investment Advisers Act of 1940, as amended (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 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.


 


8. The undersigned has full right and power, without
violating any agreement by which he, she or it is bound, to enter into this Letter Agreement and to serve as a director and/or officer
of the Company.


 


9. The undersigned hereby waives any right to exercise
redemption rights with respect to any Ordinary Shares owned or to be owned by the undersigned, directly or indirectly (or to sell such
shares to the Company in a tender offer), whether such shares be part of the Founders’ Ordinary Shares or shares purchased by the
undersigned in the IPO or in the aftermarket, and agrees not to seek redemption with respect to such shares in connection with any vote
to approve a Business Combination (or sell such shares to the Company in a tender offer in connection with such a Business Combination).


 


10. The undersigned hereby agrees to not propose,
or vote in favor of, an amendment to Article 44 of the Company’s Amended and Restated Memorandum and Articles of Association
prior to the consummation of a Business Combination unless the Company provides public stockholders with the opportunity to redeem their
Ordinary Shares for cash upon such approval in accordance with such Articles.


 


11. This Letter Agreement shall be governed by
and construed and enforced in accordance 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. Each of the Company and 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 exclusive and (ii) waives any objection to such exclusive
jurisdiction and that such courts represent an inconvenient forum.


 






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12. As used herein, (i) a
“Business Combination” means a merger, share exchange, asset acquisition, stock purchase,
recapitalization, reorganization or other similar business combination with one or more businesses or entities;
(ii) “Insiders” means all officers, directors and sponsors of the Company immediately prior to the
IPO; (iii) “Founders’ Ordinary Shares” means all of the ordinary shares of the Company,
par value $0.0001 per share, outstanding prior to the consummation of the IPO; (iv) “IPO Shares”
means the Ordinary Shares issued in the Company’s IPO; (v) “Private Securities” means the
Private Units, the Private Shares, the Private Rights, and the Private Warrants; (vi) “Private Units”
means the Units that are being sold privately by the Company simultaneously with the consummation of the IPO;
(vii) “Private Shares” means the Ordinary Shares underlying the Private Units;
(viii) “Private Warrants” means the Warrants underlying the Private Units;
(ix) “Private Rights” means the Rights underlying the Private Units; (x) “Trust
Agreement” means the Investment Management Trust Agreement between the Company and Continental Stock
Transfer & Trust Company being entered into in connection with the IPO and governing the use of funds held in the Trust
Account; (xi) “Trust Account” means the trust account into which a portion of the net proceeds of the
IPO and sale of Private Securities will be deposited; (xii) “Registration Statement” means the
Company’s registration statement on Form S-1 (SEC File No. 333-262381) filed with the Securities and Exchange
Commission; and (xiii) “Transfer” shall mean the (a) sale of, offer to sell, contract or
agreement to sell, hypothecate, pledge, grant of any option to purchase or otherwise dispose of or agreement to dispose of, directly
or indirectly, or establishment or increase of a put equivalent position or liquidation with respect to or decrease of a call
equivalent position within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Securities and Exchange Commission promulgated thereunder with respect to, any security, (b) entry into any
swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any
security, whether any such transaction is to be settled by delivery of such securities, in cash or otherwise, or (c) public
announcement of any intention to effect any transaction specified in clause (a) or (b).


 


13. This Letter Agreement constitutes the entire
agreement and understanding of the parties hereto in respect of the subject matter hereof and supersedes all prior understandings, agreements,
or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject matter hereof
or the transactions contemplated hereby. This Letter Agreement may not be changed, amended, modified or waived (other than to correct
a typographical error), except by a written instrument executed by all parties hereto.


 


14. Each of 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. Nothing contained herein shall be deemed to render the Underwriters a representative of, or a fiduciary with respect to, the
Company, its stockholders or any creditor or vendor of the Company with respect to the subject matter hereof.


 


15. 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 parties. 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 Sponsor, each of the Insiders and each of their respective successors,
heirs, personal representatives and assigns and permitted transferees.


 


15. This Letter Agreement may be executed in any
number of original or facsimile counterparts, and each of such counterparts shall for all purposes be deemed to be an original, and all
such counterparts shall together constitute but one and the same instrument.


 


16. This Letter Agreement shall be deemed severable,
and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Letter
Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties
hereto intend that there shall be added as a part of this Letter Agreement a provision as similar in terms to such invalid or unenforceable
provision as may be possible and be valid and enforceable.


 


[Signature Page Follows]


 






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	 	Acknowledged and Agreed:
	 	 
	 	LAKESHORE ACQUISITION II CORP.
	 	 
	 	By:	/s/ Bill Chen
	 	 	Name:	Bill Chen
	 	 	Title:	Chief Executive Officer


 


	 	DIRECTORS AND OFFICERS
	 	 
	 	By:	/s/ Bill Chen
	 	 	Bill Chen
	 	 	 
	 	By:	/s/ H. David Sherman
	 	 	H. David Sherman
	 	 	 
	 	By:	/s/ Mingyu (Michael) Li
	 	 	Mingyu (Michael) Li
	 	 	 
	 	By:	/s/ Jon M. Montgomery
	 	 	Jon M. Montgomery