Document:

EXHIBIT 10.1

                                                               February 16, 2005

KBL Healthcare Acquisition Corp. II
645 Madison Avenue, 14th Floor
New York, New York 10022

EarlyBirdCapital, Inc.
275 Madison Avenue
Suite 1203
New York, New York 10016

     Re: Initial Public Offering

Gentlemen:

         The undersigned stockholder, officer and director of KBL Healthcare
Acquisition Corp. II ("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 11 hereof):

         1. If the Company solicits approval of its stockholders of a Business
Combination, the undersigned will vote all Insider Shares owned by her 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 18 months from the effective date ("Effective Date") of the
registration statement relating to the IPO (or 24 months under the circumstances
described in the prospectus relating to the IPO), the undersigned will take all
reasonable actions within her 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 (as
defined in the Letter of Intent) as a result of such liquidation with respect to
her 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

KBL Healthcare Acquisition Corp. II
EarlyBirdCapital, Inc.
February 16, 2005
Page 2

Fund for any reason whatsoever. The undersigned agrees to indemnify and hold
harmless the Company, pro rata with the other officers and directors of the
Company based on the number of Insider Shares held by each such individual,
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 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 interest 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 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 stockholders from a financial
perspective.

         5. Neither the undersigned, any member of the family of the
undersigned, nor any Affiliate 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 Business Combination; provided that commencing on the
Effective Date, KBL Healthcare Ventures ("Related Party"), shall be allowed to
charge the Company an allocable share of Related Party's overhead, up to $7,500
per month, 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
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 a Business

KBL Healthcare Acquisition Corp. II
EarlyBirdCapital, Inc.
February 16, 2005
Page 3

Combination.

         7. The undersigned will escrow her Insider Shares for the three year
period commencing on the Effective Date 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 Chief Executive Officer, Secretary
and a member of the Board of Directors 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 Section
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) she 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) she 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 she is not currently a defendant in any such criminal proceeding; and

     (c) she 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 she is bound, to enter into this letter agreement and to
serve as Chief Executive Officer, Secretary and a member of the Board of
Directors of the Company.

         10. 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

KBL Healthcare Acquisition Corp. II
EarlyBirdCapital, Inc.
February 16, 2005
Page 4

and obtaining the Information and
the undersigned hereby releases them from liability for any damage whatsoever in
that connection.

         11. As used herein, (i) a "Business Combination" shall mean an
acquisition by merger, capital stock exchange, asset or stock acquisition,
reorganization or otherwise, of an operating business in the healthcare, or
healthcare related, industry; (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.

                                                     Marlene Krauss, M.D.
                                                     --------------------
                                                     Print Name of Insider

                                                     /s/ Marlene Krauss
                                                     ------------------
                                                     Signature

EXHIBIT A

     MARLENE KRAUSS, M.D. has been our chief executive officer, secretary and a
member of our board of directors since our inception. Dr. Krauss has been a
managing member and president of KBL Healthcare Management Inc. since November
1998. Dr. Krauss has also been affiliated with all of the KBL Funds since
November 1998. In August 1991, Dr. Krauss co-founded KBL Healthcare, Inc. and
has served as its chairperson and chief executive officer since its formation.
In June 1999, Dr. Krauss co-founded Lumenos and has served as a member of its
board of directors since its formation. From April 1993 to August 1994, Dr.
Krauss served as chairperson and chief executive officer of KBL I. Following its
merger with Concord, Dr. Krauss served as its vice chairperson until February
1996. Dr. Krauss also co-founded and/or led the initial financing for the
following companies:

     o    Candela Corporation, a Nasdaq National Market listed developer of
          advanced aesthetic laser systems that allow physicians and personal
          care practitioners to treat a wide variety of cosmetic and medical
          conditions;

     o    Summit Autonomous Inc., formerly a Nasdaq National Market listed
          manufacturer and supplier of excimer laser systems and related
          products used to perform procedures that correct common refractive
          vision disorders such as nearsightedness, farsightedness and
          astigmatism; and

     o    Cambridge Heart, Inc., an Over The Counter Bulletin Board listed
          company that is engaged in the research, development and
          commercialization of products for the non-invasive diagnosis of
          cardiac disease.

Dr. Krauss received a B.A. from Cornell University, an M.B.A. from Harvard
Graduate School of Business Administration and an M.D. from Harvard Medical
School. She completed her training as a vitreoretinal surgeon at New York
Hospital in 1985. Dr. Krauss is the wife of Dr. Berk, our chairman of the board
and president.EXHIBIT 10.2

                                                     February 16, 2005

KBL Healthcare Acquisition Corp. II
645 Madison Avenue, 14th Floor
New York, New York 10022

EarlyBirdCapital, Inc.
275 Madison Avenue
Suite 1203
New York, New York 10016

                  Re:  Initial Public Offering

Gentlemen:

                  The undersigned stockholder, officer and director of KBL
Healthcare Acquisition Corp. II ("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 11 hereof):

                  1. If the Company solicits approval of its stockholders 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 18 months from the effective date ("Effective Date")
of the registration statement relating to the IPO (or 24 months under the
circumstances described in the prospectus relating to the IPO), the undersigned
will 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 (as defined in the Letter of Intent) as a result of such
liquidation with respect to his 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

KBL Healthcare Acquisition Corp. II
EarlyBirdCapital, Inc.
February 16, 2005
Page 2

Fund for any reason whatsoever. The undersigned agrees to indemnify and hold
harmless the Company, pro rata with the other officers and directors of the
Company based on the number of Insider Shares held by each such individual,
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 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 interest 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
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 stockholders from a financial
perspective.

                  5. Neither the undersigned, any member of the family of the
undersigned, nor any Affiliate 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 Business Combination; provided that commencing on the
Effective Date, KBL Healthcare Ventures ("Related Party"), shall be allowed to
charge the Company an allocable share of Related Party's overhead, up to $7,500
per month, 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
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 a Business Combination.

KBL Healthcare Acquisition Corp. II
EarlyBirdCapital, Inc.
February 16, 2005
Page 3

                  7. The undersigned will escrow his Insider Shares for the
three year period commencing on the Effective Date 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
President 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 Section 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 Chairman of the Board and President of the Company.

                  10. 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

KBL Healthcare Acquisition Corp. II
EarlyBirdCapital, Inc.
February 16, 2005
Page 4

and obtaining the Information and the undersigned hereby releases them from
liability for any damage whatsoever in that connection.

                  11. As used herein, (i) a "Business Combination" shall mean an
acquisition by merger, capital stock exchange, asset or stock acquisition,
reorganization or otherwise, of an operating business in the healthcare, or
healthcare related, industry; (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.

                                                     Zachary Berk, O.D.
                                                     ---------------------
                                                     Print Name of Insider

                                                     /s/ Zachary Berk
                                                     ---------------------
                                                     Signature

EXHIBIT A

         ZACHARY BERK, O.D. has been our chairman of the board and president
since our inception. Dr. Berk has been a managing member and secretary and
treasurer of KBL Healthcare Management, Inc., a management company that provides
investment services to the KBL Healthcare venture capital funds ("KBL Funds"),
since November 1998. Dr. Berk has also been affiliated with all of the KBL Funds
since November 1998. In August 1991, Dr. Berk co-founded KBL Healthcare, Inc., a
venture capital and investment banking firm engaged in advisory and principal
based funding activities for early-stage and middle-market companies in the
healthcare field, and has served as its senior managing director since its
formation. In June 1999, Dr. Berk co-founded Lumenos, Inc., a consumer-driven
healthcare company, and served as its vice chairman of the board from September
1999 to April 2004. From April 1993 to August 1994, Dr. Berk served as vice
president, treasurer and a member of the board of directors of KBL Healthcare
Acquisition Corp. ("KBL I"), a blank check company with an objective to acquire
an operating business in the healthcare industry. In August 1994, KBL I merged
with Concord Health Group, Inc. and Dr. Berk remained a director of Concord
until February 1996. Dr. Berk received a B.S. and a Doctorate of Optometry from
Pacific University. Dr. Berk is the husband of Dr. Krauss, our chief executive
officer, secretary and director.

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