Document:

WARRANT AGREEMENT

      Agreement  made as of  _____________,  2005  between  Chardan  South China
Acquisition Corporation,  a Delaware corporation,  with offices at 625 Broadway,
Suite 1111, San Diego,  California  92101  ("Company"),  and  Continental  Stock
Transfer & Trust  Company,  a New York  corporation,  with offices at 17 Battery
Place, New York, New York 10004 ("Warrant Agent").

      WHEREAS,  the Company is engaged in a public offering ("Public  Offering")
of Units  ("Units")  and, in connection  therewith,  has determined to issue and
deliver  up to  (i)  11,500,000  Warrants  ("Public  Warrants")  to  the  public
investors,  and (ii) 500,000 Warrants to  EarlyBirdCapital,  Inc. ("EBC") or its
designees  ("Representative's  Warrants" and, together with the Public Warrants,
the "Warrants"), each of such Public Warrants evidencing the right of the holder
thereof to purchase one share of the Company's  common  stock,  par value $.0001
per share  ("Common  Stock"),  for $5.00,  subject to  adjustment  as  described
herein; and

      WHEREAS, the Company has filed with the Securities and Exchange Commission
a Registration Statement on Form S-1, No. 333-125018 ("Registration Statement"),
for the  registration,  under the Securities Act of 1933, as amended ("Act") of,
among other securities, the Warrants and the Common Stock issuable upon exercise
of the Warrants; and

      WHEREAS,  the Company  desires  the Warrant  Agent to act on behalf of the
Company,  and the  Warrant  Agent is willing to so act, in  connection  with the
issuance,  registration,  transfer,  exchange,  redemption  and  exercise of the
Warrants; and

      WHEREAS, the Company desires to provide for the form and provisions of the
Warrants,  the terms upon which  they  shall be issued  and  exercised,  and the
respective  rights,  limitation of rights,  and  immunities of the Company,  the
Warrant Agent, and the holders of the Warrants; and

      WHEREAS,  all acts and  things  have  been  done and  performed  which are
necessary  to make the  Warrants,  when  executed  on behalf of the  Company and
countersigned  by or on behalf of the Warrant  Agent,  as provided  herein,  the
valid,  binding and legal  obligations  of the  Company,  and to  authorize  the
execution and delivery of this Agreement.

      NOW,   THEREFORE,   in  consideration  of  the  mutual  agreements  herein
contained, the parties hereto agree as follows:

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1.  Appointment of Warrant Agent.  The Company hereby appoints the Warrant Agent
to act as agent for the Company for the  Warrants,  and the Warrant Agent hereby
accepts such  appointment  and agrees to perform the same in accordance with the
terms and conditions set forth in this Agreement.

2. Warrants.

      2.1.  Form of Warrant.  Each Warrant  shall be issued in  registered  form
only, shall be in substantially the form of Exhibit A hereto,  the provisions of
which are  incorporated  herein  and shall be signed  by, or bear the  facsimile
signature of, the Chairman of the Board or President and Treasurer, Secretary or
Assistant  Secretary of the Company and shall bear a facsimile of the  Company's
seal. In the event the person whose facsimile signature has been placed upon any
Warrant  shall have ceased to serve in the capacity in which such person  signed
the Warrant before such Warrant is issued, it may be issued with the same effect
as if he or she had not ceased to be such at the date of issuance.

      2.2. Effect of  Countersignature.  Unless and until  countersigned  by the
Warrant Agent pursuant to this  Agreement,  a Warrant shall be invalid and of no
effect and may not be exercised by the holder thereof.

      2.3. Registration.

            2.3.1.  Warrant  Register.  The Warrant Agent shall  maintain  books
("Warrant  Register"),  for  the  registration  of  original  issuance  and  the
registration  of transfer  of the  Warrants.  Upon the  initial  issuance of the
Warrants,  the Warrant  Agent shall issue and register the Warrants in the names
of the  respective  holders  thereof  in such  denominations  and  otherwise  in
accordance with instructions delivered to the Warrant Agent by the Company.

            2.3.2.  Registered Holder. Prior to due presentment for registration
of transfer of any Warrant, the Company and the Warrant Agent may deem and treat
the person in whose  name such  Warrant  shall be  registered  upon the  Warrant
Register  ("registered  holder"),  as the absolute  owner of such Warrant and of
each Warrant represented thereby  (notwithstanding  any notation of ownership or
other writing on the Warrant  Certificate  made by anyone other than the Company
or the Warrant  Agent),  for the purpose of any  exercise  thereof,  and for all
other purposes,  and neither the Company nor the Warrant Agent shall be affected
by any notice to the contrary.

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      2.4.  Detachability of Warrants.  The securities comprising the Units will
not be  separately  transferable  until 90 days after the date hereof unless EBC
informs the Company of its decision to allow earlier separate trading, but in no
event will EBC allow  separate  trading of the  securities  comprising the Units
until the Company files a Current  Report on Form 8-K which  includes an audited
balance sheet reflecting the receipt by the Company of the gross proceeds of the
Public Offering including the proceeds received by the Company from the exercise
of the  Underwriter's  over-allotment  option, if the  over-allotment  option is
exercised prior to the filing of the Form 8-K.

      2.5 Warrants and Representative's  Warrants. The Representative's Warrants
shall have the same terms and be in the same form as the Public  Warrants except
with respect to the Warrant Price as set forth below in Section 3.1.

3. Terms and Exercise of Warrants

      3.1. Warrant Price. Each Public Warrant shall,  when  countersigned by the
Warrant Agent, entitle the registered holder thereof,  subject to the provisions
of such  Public  Warrant and of this  Warrant  Agreement,  to purchase  from the
Company the number of shares of Common  Stock  stated  therein,  at the price of
$5.00 per whole share,  subject to the adjustments  provided in Section 4 hereof
and in the last  sentence of this Section  3.1.  Each  Representative's  Warrant
shall,  when  countersigned by the Warrant Agent,  entitle the registered holder
thereof,  subject to the provisions of such Representative's Warrant and of this
Warrant  Agreement,  to purchase from the Company the number of shares of Common
Stock  stated  therein,  at the price of $___ per whole  share,  subject  to the
adjustments  provided in Section 4 hereof.  The term "Warrant  Price" as used in
this Warrant  Agreement  refers to the price per share at which Common Stock may
be  purchased  at the time a  Warrant  is  exercised.  The  Company  in its sole
discretion may lower the Warrant Price at any time prior to the Expiration Date.

      3.2.  Duration of  Warrants.  A Warrant may be  exercised  only during the
period  ("Exercise  Period")  commencing on the later of (i) the consummation by
the Company of a merger,  capital stock  exchange,  asset  acquisition  or other
similar business combination  ("Business  Combination") (as described more fully
in  the  Company's  Registration  Statement)  and  (ii)  __________,  2006,  and
terminating  at 5:00  p.m.,  New York City time on the  earlier  to occur of (i)
___________,  2009 or (ii) the date  fixed for  redemption  of the  Warrants  as
provided in Section 6 of this Agreement ("Expiration Date"). Except with respect
to the  right to  receive  the  Redemption  Price  (as set  forth in  Section  6
hereunder),  each Warrant not exercised on or before the  Expiration  Date shall
become void, and all rights  thereunder and all rights in respect  thereof under
this Agreement shall cease at the close of business on the Expiration  Date. The
Company in its sole  discretion  may  extend the  duration  of the  Warrants  by
delaying the Expiration Date.

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      3.3. Exercise of Warrants.

            3.3.1.  Payment.  Subject to the  provisions of the Warrant and this
Warrant  Agreement,  a Warrant,  when countersigned by the Warrant Agent, may be
exercised by the registered  holder thereof by surrendering it, at the office of
the Warrant Agent,  or at the office of its successor as Warrant  Agent,  in the
Borough of Manhattan, City and State of New York, with the subscription form, as
set forth in the Warrant, duly executed,  and by paying in full, in lawful money
of the United States,  in cash,  good certified check or good bank draft payable
to the order of the  Company (or as  otherwise  agreed to by the  Company),  the
Warrant  Price for each full  share of Common  Stock as to which the  Warrant is
exercised and any and all applicable  taxes due in connection  with the exercise
of the  Warrant,  the  exchange  of the Warrant  for the Common  Stock,  and the
issuance of the Common Stock.

            3.3.2.  Issuance of Certificates.  As soon as practicable  after the
exercise of any Warrant and the clearance of the funds in payment of the Warrant
Price,  the  Company  shall  issue to the  registered  holder of such  Warrant a
certificate  or  certificates  for the number of full shares of Common  Stock to
which he is  entitled,  registered  in such name or names as may be  directed by
him, her or it, and if such Warrant shall not have been exercised in full, a new
countersigned  Warrant for the number of shares as to which such  Warrant  shall
not have been exercised. Notwithstanding the foregoing, the Company shall not be
obligated to deliver any securities pursuant to the exercise of a Warrant unless
a  registration  statement  under the Act with  respect to the  Common  Stock is
effective.  Warrants  may not be  exercised  by, or  securities  issued  to, any
registered holder in any state in which such exercise would be unlawful.

            3.3.3.  Valid  Issuance.  All shares of Common Stock issued upon the
proper  exercise of a Warrant in conformity with this Agreement shall be validly
issued, fully paid and nonassessable.

            3.3.4.  Date of  Issuance.  Each  person  in  whose  name  any  such
certificate  for  shares of Common  Stock is issued  shall for all  purposes  be
deemed to have  become the holder of record of such  shares on the date on which
the  Warrant  was  surrendered  and  payment  of the  Warrant  Price  was  made,
irrespective  of the date of delivery of such  certificate,  except that, if the
date of such  surrender and payment is a date when the stock  transfer  books of
the Company are closed, such person shall be deemed to have become the holder of
such shares at the close of business  on the next  succeeding  date on which the
stock transfer books are open.

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            3.3.5. Intentionally Omitted.

4. Adjustments.

      4.1. Stock Dividends - Split-Ups. If after the date hereof, and subject to
the provisions of Section 4.6 below, the number of outstanding  shares of Common
Stock is increased by a stock dividend  payable in shares of Common Stock, or by
a split-up of shares of Common  Stock,  or other  similar  event,  then,  on the
effective date of such stock dividend,  split-up or similar event, the number of
shares of Common Stock  issuable on exercise of each Warrant  shall be increased
in proportion to such increase in outstanding shares of Common Stock.

      4.2.  Aggregation of Shares. If after the date hereof,  and subject to the
provisions of Section 4.6, the number of  outstanding  shares of Common Stock is
decreased   by  a   consolidation,   combination,   reverse   stock   split   or
reclassification  of shares of Common Stock or other similar event, then, on the
effective  date  of  such  consolidation,   combination,  reverse  stock  split,
reclassification or similar event, the number of shares of Common Stock issuable
on exercise of each Warrant shall be decreased in proportion to such decrease in
outstanding shares of Common Stock.

      4.3 Adjustments in Exercise Price. Whenever the number of shares of Common
Stock purchasable upon the exercise of the Warrants is adjusted,  as provided in
Section 4.1 and 4.2 above,  the Warrant  Price shall be adjusted (to the nearest
cent) by multiplying such Warrant Price  immediately prior to such adjustment by
a fraction  (x) the  numerator  of which shall be the number of shares of Common
Stock  purchasable upon the exercise of the Warrants  immediately  prior to such
adjustment,  and (y) the  denominator  of which shall be the number of shares of
Common Stock so purchasable immediately thereafter.

      4.4.  Replacement of Securities upon  Reorganization,  etc. In case of any
reclassification  or  reorganization  of the outstanding  shares of Common Stock
(other than a change covered by Section 4.1 or 4.2 hereof or that solely affects
the par value of such shares of Common  Stock),  or in the case of any merger or
consolidation  of the Company  with or into  another  corporation  (other than a
consolidation  or merger in which the Company is the continuing  corporation and
that  does  not  result  in  any   reclassification  or  reorganization  of  the
outstanding shares of Common Stock), or in the case of any sale or conveyance to
another  corporation or entity of the assets or other property of the Company as
an entirety or substantially as an entirety in connection with which the Company
is dissolved,  the Warrant  holders shall  thereafter have the right to purchase
and receive,  upon the basis and upon the terms and conditions  specified in the
Warrants  and in lieu of the shares of Common  Stock of the Company  immediately
theretofore   purchasable  and  receivable  upon  the  exercise  of  the  rights
represented  thereby, the kind and amount of shares of stock or other securities
or   property   (including   cash)   receivable   upon  such   reclassification,
reorganization,  merger or  consolidation,  or upon a dissolution  following any
such sale or  transfer,  that the  Warrant  holder  would have  received if such
Warrant  holder had exercised his, her or its  Warrant(s)  immediately  prior to
such event;  and if any  reclassification  also results in a change in shares of
Common Stock covered by Section 4.1 or 4.2, then such  adjustment  shall be made
pursuant to Sections 4.1, 4.2, 4.3 and this Section 4.4. The  provisions of this
Section   4.4   shall   similarly   apply   to   successive   reclassifications,
reorganizations, mergers or consolidations, sales or other transfers.

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      4.5.  Notices of Changes in Warrant.  Upon every adjustment of the Warrant
Price or the number of shares  issuable upon exercise of a Warrant,  the Company
shall give written notice thereof to the Warrant Agent, which notice shall state
the Warrant Price  resulting from such  adjustment and the increase or decrease,
if any, in the number of shares purchasable at such price upon the exercise of a
Warrant,  setting forth in reasonable  detail the method of calculation  and the
facts upon which such  calculation  is based.  Upon the  occurrence of any event
specified in Sections 4.1, 4.2, 4.3 or 4.4, then, in any such event, the Company
shall give written notice to each Warrant holder,  at the last address set forth
for such holder in the  warrant  register,  of the record date or the  effective
date of the event. Failure to give such notice, or any defect therein, shall not
affect the legality or validity of such event.

      4.6. No Fractional Shares. Notwithstanding any provision contained in this
Warrant Agreement to the contrary, the Company shall not issue fractional shares
upon exercise of Warrants. If, by reason of any adjustment made pursuant to this
Section 4, the holder of any Warrant  would be  entitled,  upon the  exercise of
such Warrant,  to receive a fractional  interest in a share,  the Company shall,
upon such  exercise,  round up to the  nearest  whole  number  the number of the
shares of Common Stock to be issued to the Warrant holder.

      4.7. Form of Warrant.  The form of Warrant need not be changed  because of
any  adjustment  pursuant  to this  Section 4, and  Warrants  issued  after such
adjustment  may state the same Warrant Price and the same number of shares as is
stated in the Warrants initially issued pursuant to this Agreement. However, the
Company  may at any time in its sole  discretion  make any change in the form of
Warrant  that the  Company  may deem  appropriate  and that does not  affect the
substance thereof,  and any Warrant thereafter issued or countersigned,  whether
in exchange or substitution for an outstanding  Warrant or otherwise,  may be in
the form as so changed.

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5. Transfer and Exchange of Warrants.

      5.1.  Registration  of  Transfer.  The Warrant  Agent shall  register  the
transfer,  from  time to time,  of any  outstanding  Warrant  upon  the  Warrant
Register,  upon surrender of such Warrant for transfer,  properly  endorsed with
signatures properly  guaranteed and accompanied by appropriate  instructions for
transfer.  Upon any such transfer, a new Warrant representing an equal aggregate
number of Warrants shall be issued and the old Warrant shall be cancelled by the
Warrant Agent. The Warrants so cancelled shall be delivered by the Warrant Agent
to the Company from time to time upon request.

      5.2.  Procedure for Surrender of Warrants.  Warrants may be surrendered to
the Warrant Agent, together with a written request for exchange or transfer, and
thereupon  the Warrant  Agent shall issue in exchange  therefor  one or more new
Warrants as requested by the registered  holder of the Warrants so  surrendered,
representing an equal aggregate number of Warrants;  provided,  however, that in
the event that a Warrant  surrendered  for transfer bears a restrictive  legend,
the  Warrant  Agent  shall not cancel  such  Warrant  and issue new  Warrants in
exchange therefor until the Warrant Agent has received an opinion of counsel for
the Company  stating that such transfer may be made and  indicating  whether the
new Warrants must also bear a restrictive legend.

      5.3.  Fractional  Warrants.  The  Warrant  Agent  shall not be required to
effect any  registration  of  transfer  or  exchange  which  will  result in the
issuance of a warrant certificate for a fraction of a warrant.

      5.4. Service Charges.  No service charge shall be made for any exchange or
registration of transfer of Warrants.

      5.5. Warrant Execution and  Countersignature.  The Warrant Agent is hereby
authorized to countersign  and to deliver,  in accordance with the terms of this
Agreement, the Warrants required to be issued pursuant to the provisions of this
Section 5, and the Company,  whenever required by the Warrant Agent, will supply
the Warrant  Agent with Warrants duly executed on behalf of the Company for such
purpose.

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6. Redemption.

      6.1.  Redemption.  Subject to Section 6.4 hereof, not less than all of the
outstanding Warrants may be redeemed,  at the option of the Company, at any time
after they become  exercisable and prior to their  expiration,  at the office of
the Warrant Agent,  upon the notice referred to in Section 6.2., at the price of
$.01 per Warrant ("Redemption Price"), provided that the last sales price of the
Common  Stock has been at least  $8.50  per  share  (subject  to  adjustment  in
accordance  with  Section 4 hereof),  on each of twenty (20) trading days within
any thirty (30)-trading day period ending on the third business day prior to the
date on which notice of redemption is given.  The provisions of this Section 6.1
may not be modified,  amended or deleted  without the prior  written  consent of
EBC.

      6.2. Date Fixed for, and Notice of,  Redemption.  In the event the Company
shall elect to redeem all of the Warrants,  the Company shall fix a date for the
redemption.  Notice of redemption  shall be mailed by first class mail,  postage
prepaid,  by the  Company  not less  than 30 days  prior to the date  fixed  for
redemption  to the  registered  holders of the  Warrants to be redeemed at their
last addresses as they shall appear on the registration books. Any notice mailed
in the manner herein provided shall be  conclusively  presumed to have been duly
given whether or not the registered holder received such notice.

      6.3.  Exercise After Notice of Redemption.  The Warrants may be exercised,
for cash at any time  after  notice of  redemption  shall have been given by the
Company pursuant to Section 6.2. hereof and prior to the time and date fixed for
redemption.  On and after the redemption date, the record holder of the Warrants
shall have no further rights except to receive,  upon surrender of the Warrants,
the Redemption Price.

      6.4 Exclusion of Certain Warrants.

            6.4.1 The Company  understands  that the redemption  rights provided
for by this Section 6 apply only to outstanding Warrants. To the extent a person
holds  rights  to  purchase   Warrants,   such  purchase  rights  shall  not  be
extinguished  by redemption.  However,  once such purchase rights are exercised,
the Company may redeem the Warrants issued upon such exercise  provided that the
criteria for  redemption  is met. The  provisions of this Section 6.4 may not be
modified, amended or deleted without the prior written consent of EBC.

            6.4.2 Any of the up to 1,000,000 Warrants purchased by the Company's
directors and several individuals  affiliated with companies they are associated
with at prices not to exceed  $0.75 per  Warrant  within the forty  trading  day
period following separate trading of the Warrants shall not be redeemable by the
Company as long as such  Warrants  continue  to be held by such  individuals  or
their affiliates.  However,  once such individuals or their affiliates  transfer
such Warrants, such Warrants shall then be redeemable by the Company pursuant to
Section 6 hereof.

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7. Other Provisions Relating to Rights of Holders of Warrants.

      7.1. No Rights as  Stockholder.  A Warrant does not entitle the registered
holder thereof to any of the rights of a stockholder of the Company,  including,
without  limitation,  the right to receive  dividends,  or other  distributions,
exercise  any  preemptive  rights to vote or to consent or to receive  notice as
stockholders  in respect of the  meetings  of  stockholders  or the  election of
directors of the Company or any other matter.

      7.2. Lost, Stolen,  Mutilated,  or Destroyed  Warrants.  If any Warrant is
lost, stolen,  mutilated, or destroyed, the Company and the Warrant Agent may on
such terms as to indemnity or otherwise as they may in their  discretion  impose
(which  shall,  in the  case  of a  mutilated  Warrant,  include  the  surrender
thereof),  issue a new  Warrant  of like  denomination,  tenor,  and date as the
Warrant so lost,  stolen,  mutilated,  or destroyed.  Any such new Warrant shall
constitute a substitute  contractual  obligation of the Company,  whether or not
the allegedly lost, stolen, mutilated, or destroyed Warrant shall be at any time
enforceable by anyone.

      7.3.  Reservation of Common Stock.  The Company shall at all times reserve
and keep  available a number of its  authorized  but  unissued  shares of Common
Stock that will be sufficient to permit the exercise in full of all  outstanding
Warrants issued pursuant to this Agreement.

      7.4.  Registration  of Common Stock.  The Company agrees that prior to the
commencement  of the  Exercise  Period,  it shall file with the  Securities  and
Exchange Commission a post-effective amendment to the Registration Statement, or
a new registration  statement,  for the registration,  under the Act, of, and it
shall take such action as is necessary  to qualify for sale,  in those states in
which the  Warrants  were  initially  offered by the  Company,  the Common Stock
issuable upon exercise of the Warrants. In either case, the Company will use its
best  efforts  to  cause  the  same to  become  effective  and to  maintain  the
effectiveness  of  such  registration  statement  until  the  expiration  of the
Warrants in accordance with the provisions of this Agreement.  The provisions of
this  Section  7.4 may not be  modified,  amended or deleted  without  the prior
written consent of EBC.

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8. Concerning the Warrant Agent and Other Matters.

      8.1. Payment of Taxes. The Company will from time to time promptly pay all
taxes and charges that may be imposed  upon the Company or the Warrant  Agent in
respect of the  issuance or delivery of shares of Common Stock upon the exercise
of Warrants, but the Company shall not be obligated to pay any transfer taxes in
respect of the Warrants or such shares.

      8.2. Resignation, Consolidation, or Merger of Warrant Agent.

            8.2.1. Appointment of Successor Warrant Agent. The Warrant Agent, or
any successor to it hereafter appointed, may resign its duties and be discharged
from all further duties and liabilities  hereunder after giving sixty (60) days'
notice in writing to the  Company.  If the office of the Warrant  Agent  becomes
vacant by  resignation  or  incapacity  to act or  otherwise,  the Company shall
appoint in writing a successor  Warrant Agent in place of the Warrant Agent.  If
the Company shall fail to make such appointment within a period of 30 days after
it has been notified in writing of such resignation or incapacity by the Warrant
Agent or by the holder of the Warrant (who shall,  with such notice,  submit his
Warrant for inspection by the Company), then the holder of any Warrant may apply
to the Supreme Court of the State of New York for the County of New York for the
appointment  of a successor  Warrant Agent at the Company's  cost. Any successor
Warrant  Agent,  whether  appointed by the Company or by such court,  shall be a
corporation  organized and existing  under the laws of the State of New York, in
good standing and having its principal office in the Borough of Manhattan,  City
and State of New York,  and  authorized  under such laws to  exercise  corporate
trust  powers and  subject to  supervision  or  examination  by federal or state
authority.  After appointment,  any successor Warrant Agent shall be vested with
all the authority,  powers, rights,  immunities,  duties, and obligations of its
predecessor  Warrant  Agent with like effect as if  originally  named as Warrant
Agent  hereunder,  without  any  further  act or deed;  but if for any reason it
becomes  necessary or appropriate,  the predecessor  Warrant Agent shall execute
and deliver, at the expense of the Company,  an instrument  transferring to such
successor  Warrant  Agent  all  the  authority,   powers,  and  rights  of  such
predecessor  Warrant Agent hereunder;  and upon request of any successor Warrant
Agent the Company  shall  make,  execute,  acknowledge,  and deliver any and all
instruments in writing for more fully and effectually  vesting in and confirming
to such successor Warrant Agent all such authority,  powers, rights, immunities,
duties, and obligations.

            8.2.2.  Notice of Successor  Warrant Agent. In the event a successor
Warrant Agent shall be appointed,  the Company shall give notice  thereof to the
predecessor  Warrant Agent and the transfer agent for the Common Stock not later
than the effective date of any such appointment.

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<PAGE>

            8.2.3.  Merger or  Consolidation  of Warrant Agent.  Any corporation
into which the Warrant Agent may be merged or with which it may be  consolidated
or any  corporation  resulting  from any  merger or  consolidation  to which the
Warrant Agent shall be a party shall be the  successor  Warrant Agent under this
Agreement without any further act.

      8.3. Fees and Expenses of Warrant Agent.

            8.3.1.  Remuneration.  The Company  agrees to pay the Warrant  Agent
reasonable  remuneration  for its services as such Warrant  Agent  hereunder and
will  reimburse  the  Warrant  Agent upon demand for all  expenditures  that the
Warrant Agent may reasonably incur in the execution of its duties hereunder.

            8.3.2. Further Assurances.  The Company agrees to perform,  execute,
acknowledge, and deliver or cause to be performed,  executed,  acknowledged, and
delivered all such further and other acts,  instruments,  and  assurances as may
reasonably  be required by the Warrant  Agent for the carrying out or performing
of the provisions of this Agreement.

      8.4. Liability of Warrant Agent.

            8.4.1. Reliance on Company Statement. Whenever in the performance of
its  duties  under this  Warrant  Agreement,  the  Warrant  Agent  shall deem it
necessary or desirable  that any fact or matter be proved or  established by the
Company prior to taking or suffering any action  hereunder,  such fact or matter
(unless other evidence in respect thereof be herein specifically prescribed) may
be deemed to be conclusively proved and established by a statement signed by the
President  or Chairman of the Board of the Company and  delivered to the Warrant
Agent.  The Warrant  Agent may rely upon such  statement for any action taken or
suffered in good faith by it pursuant to the provisions of this Agreement.

            8.4.2.  Indemnity.  The Warrant Agent shall be liable hereunder only
for its own negligence,  willful  misconduct or bad faith. The Company agrees to
indemnify  the  Warrant  Agent  and  save  it  harmless   against  any  and  all
liabilities,  including  judgments,  costs  and  reasonable  counsel  fees,  for
anything done or omitted by the Warrant Agent in the execution of this Agreement
except as a result of the Warrant Agent's negligence, willful misconduct, or bad
faith.

                                       11
<PAGE>

            8.4.3.  Exclusions.  The Warrant Agent shall have no  responsibility
with respect to the  validity of this  Agreement or with respect to the validity
or execution of any Warrant (except its countersignature  thereof); nor shall it
be  responsible  for any breach by the  Company  of any  covenant  or  condition
contained in this  Agreement or in any Warrant;  nor shall it be  responsible to
make any  adjustments  required  under  the  provisions  of  Section 4 hereof or
responsible  for the manner,  method,  or amount of any such  adjustment  or the
ascertaining  of the existence of facts that would require any such  adjustment;
nor  shall it by any act  hereunder  be  deemed  to make any  representation  or
warranty as to the authorization or reservation of any shares of Common Stock to
be issued  pursuant to this Agreement or any Warrant or as to whether any shares
of Common Stock will when issued be valid and fully paid and nonassessable.

      8.5.  Acceptance of Agency.  The Warrant  Agent hereby  accepts the agency
established  by this Agreement and agrees to perform the same upon the terms and
conditions  herein set forth and among other things,  shall account  promptly to
the Company with respect to Warrants exercised and concurrently account for, and
pay to the Company, all moneys received by the Warrant Agent for the purchase of
shares of Common Stock through the exercise of Warrants.

9. Miscellaneous Provisions.

      9.1. Successors.  All the covenants and provisions of this Agreement by or
for the benefit of the Company or the Warrant  Agent shall bind and inure to the
benefit of their respective successors and assigns.

      9.2. Notices.  Any notice,  statement or demand authorized by this Warrant
Agreement  to be given or made by the  Warrant  Agent  or by the  holder  of any
Warrant to or on the Company shall be sufficiently given when so delivered if by
hand or  overnight  delivery  or if sent by  certified  mail or private  courier
service  within  five  days  after  deposit  of such  notice,  postage  prepaid,
addressed  (until  another  address is filed in writing by the Company  with the
Warrant Agent), as follows:

                           Chardan South China Acquisition Corporation
                           625 Broadway
                           Suite 1111
                           San Diego, California 92101
                           Attn:    Chairman

Any notice, statement or demand authorized by this Agreement to be given or made
by the holder of any Warrant or by the Company to or on the Warrant  Agent shall
be sufficiently  given when so delivered if by hand or overnight  delivery or if
sent by certified mail or private courier service within five days after deposit
of such notice,  postage  prepaid,  addressed (until another address is filed in
writing by the Warrant Agent with the Company), as follows:

                                       12
<PAGE>

                           Continental Stock Transfer & Trust Company
                           17 Battery Place
                           New York, New York 10004
                           Attn:    Compliance Department

with a copy in each case to:

                           Blank Rome LLP
                           The Chrysler Building
                           405 Lexington Avenue
                           New York, New York 10174
                           Attn:    Robert J. Mittman, Esq.

and

                           Graubard Miller
                           The Chrysler Building
                           405 Lexington Avenue
                           New York, New York 10174
                           Attn:    David Alan Miller, Esq.

and

                           EarlyBirdCapital, Inc.
                           275 Madison Avenue, Suite 1203
                           New York, New York 10016
                           Attn:    Steven Levine

      9.3. Applicable law. The validity, interpretation, and performance of this
Agreement  and of the Warrants  shall be governed in all respects by 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.
The  Company  hereby  agrees  that any action,  proceeding  or claim  against it
arising  out of or relating  in any way to this  Agreement  shall be brought and
enforced  in the courts of the State of New York or the United  States  District
Court for the Southern  District of New York,  and  irrevocably  submits to such
jurisdiction,  which jurisdiction shall be exclusive.  The Company hereby waives
any objection to such exclusive  jurisdiction  and that such courts represent an
inconvenience  forum.  Any such process or summons to be served upon the Company
may be served by  transmitting  a copy thereof by registered or certified  mail,
return receipt  requested,  postage prepaid,  addressed to it at the address set
forth in Section 9.2 hereof.  Such mailing shall be deemed personal  service and
shall be legal and binding upon the Company in any action, proceeding or claim.

                                       13
<PAGE>

      9.4. Persons Having Rights under this Agreement. Nothing in this Agreement
expressed and nothing that may be implied from any of the  provisions  hereof is
intended,  or shall be  construed,  to confer  upon,  or give to,  any person or
corporation  other than the  parties  hereto and the  registered  holders of the
Warrants and, for the purposes of Sections  6.1,  6.4, 7.4 and 9.2 hereof,  EBC,
any right,  remedy,  or claim under or by reason of this Warrant Agreement or of
any covenant, condition, stipulation, promise, or agreement hereof. EBC shall be
deemed  to be a  third-party  beneficiary  of this  Agreement  with  respect  to
Sections 6.1, 6.4, 7.4 and 9.2 hereof. All covenants, conditions,  stipulations,
promises,  and agreements  contained in this Warrant  Agreement shall be for the
sole and  exclusive  benefit of the parties  hereto (and EBC with respect to the
Sections 6.1, 6.4, 7.4 and 9.2 hereof) and their  successors  and assigns and of
the registered holders of the Warrants.

      9.5. Examination of the Warrant Agreement.  A copy of this Agreement shall
be available at all  reasonable  times at the office of the Warrant Agent in the
Borough  of  Manhattan,  City  and  State of New  York,  for  inspection  by the
registered holder of any Warrant.  The Warrant Agent may require any such holder
to submit his Warrant for inspection by it.

      9.6.  Counterparts.  This  Agreement  may be  executed  in any  number  of
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.

      9.7. Effect of Headings.  The Section  headings herein are for convenience
only and are not  part of this  Warrant  Agreement  and  shall  not  affect  the
interpretation thereof.

                                       14
<PAGE>

      IN WITNESS  WHEREOF,  this Agreement has been duly executed by the parties
hereto as of the day and year first above written.

Attest:                             CHARDAN SOUTH  CHINA ACQUISITION CORPORATION

                                    By:      ___________________________
------------------------                     Name:  Jiangnan Huang
                                             Title: Chairman

Attest:                             CONTINENTAL STOCK TRANSFER
                                    & TRUST COMPANY

                                    By:      ___________________________
-----------------------                      Name:  Steven Nelson
                                             Title: Chairman

                                       15INVESTMENT MANAGEMENT TRUST AGREEMENT
                      -------------------------------------

      This Agreement is made as of  _____________,  2005 by and between  Chardan
South China  Acquisition  Corporation  (the  "Company")  and  Continental  Stock
Transfer & Trust Company ("Trustee").

      WHEREAS, the Company's registration statement on  Form S-1, No. 333-125018
("Registration  Statement"),  for its  initial  public  offering  of  securities
("IPO") has been declared  effective as of the date hereof by the Securities and
Exchange Commission ("Effective Date"); and

      WHEREAS, EarlyBirdCapital, Inc. ("EBC") is acting as the representative of
the underwriters in the IPO; and

      WHEREAS,  as described in the  Registration  Statement,  and in accordance
with the  Company's  Certificate  of  Incorporation,  $25,835,000  of the  gross
proceeds of the IPO  ($29,835,000 if the underwriters  over-allotment  option is
exercised in full) will be delivered to the Trustee to be deposited  and held in
a trust  account for the benefit of the Company and the holders of the Company's
common  stock,  par value  $.0001  per share,  issued in the IPO as  hereinafter
provided  and in the event the Units are  registered  in  Colorado,  pursuant to
Section  11-51-302(6) of the Colorado Revised  Statutes.  A copy of the Colorado
Statute is attached hereto and made a part hereof (the amount to be delivered to
the Trustee will be referred to herein as the "Property";  the  stockholders for
whose  benefit the Trustee  shall hold the  Property  will be referred to as the
"Public  Stockholders,"  and the Public  Stockholders  and the  Company  will be
referred to together as the "Beneficiaries"); and

      WHEREAS,  the Company and the Trustee  desire to enter into this Agreement
to set forth the terms and  conditions  pursuant to which the Trustee shall hold
the Property;

      IT IS AGREED:

1. Agreements and Covenants of Trustee.  The Trustee hereby agrees and covenants
to:

            (a) Hold the Property in trust for the  Beneficiaries  in accordance
with the terms of this Agreement, including the terms of Section 11-51-302(6) of
the  Colorado   Statute,   in  a  segregated  trust  account  ("Trust  Account")
established by the Trustee at Lehman Brothers Inc.;

            (b) Manage,  supervise and administer  the Trust Account  subject to
the terms and conditions set forth herein;

            (c) In a timely  manner,  upon the  instruction  of the Company,  to
invest and reinvest the Property in United States "Government Securities" within
the meaning of Section 2(a)(16) of the Investment  Company Act of 1940, having a
maturity of one hundred and eighty days or less;

            (d) Collect and receive,  when due, all principal and income arising
from the Property,  which shall become part of the  "Property,"  as such term is
used herein;

<PAGE>

            (e) Notify the  Company of all  communications  received  by it with
respect to any Property requiring action by the Company;

            (f)  Supply  any  necessary  information  or  documents  as  may  be
requested by the Company in connection with the Company's preparation of the tax
returns for the Trust Account;

            (g)  Participate  in  any  plan  or  proceeding  for  protecting  or
enforcing  any  right or  interest  arising  from the  Property  if, as and when
instructed by the Company to do so;

            (h) Render to the  Company and to EBC,  and to such other  person as
the Company may instruct,  monthly  written  statements of the activities of and
amounts in the Trust Account  reflecting all receipts and  disbursements  of the
Trust Account; and

            (i) Commence  liquidation of the Trust Account only after receipt of
and only in accordance with the terms of a letter ("Termination  Letter"),  in a
form  substantially  similar  to that  attached  hereto as  either  Exhibit A or
Exhibit B, signed on behalf of the Company by its  President  or Chairman of the
Board and Secretary or Assistant Secretary,  and complete the liquidation of the
Trust Account and  distribute the Property in the Trust Account only as directed
in the Termination Letter and the other documents referred to therein.

2.  Agreements  and  Covenants of the  Company.  The Company  hereby  agrees and
covenants to:

      (a) Give all instructions to the Trustee  hereunder in writing,  signed by
the  Company's  President  or Chairman of the Board.  In  addition,  except with
respect to its duties under paragraph 1(i) above,  the Trustee shall be entitled
to rely on,  and shall be  protected  in relying  on,  any verbal or  telephonic
advice or instruction  which it in good faith believes to be given by any one of
the persons  authorized  above to give written  instructions,  provided that the
Company shall promptly confirm such instructions in writing;

      (b) Hold the Trustee  harmless and indemnify the Trustee from and against,
any and all expenses,  including  reasonable counsel fees and disbursements,  or
loss  suffered  by the  Trustee in  connection  with any  action,  suit or other
proceeding  brought  against the Trustee  involving any claim,  or in connection
with any claim or  demand  which in any way  arises  out of or  relates  to this
Agreement,  the services of the Trustee hereunder, or the Property or any income
earned from investment of the Property, except for expenses and losses resulting
from the Trustee's gross  negligence or willful  misconduct.  Promptly after the
receipt by the Trustee of notice of demand or claim or the  commencement  of any
action,  suit or  proceeding,  pursuant  to which the  Trustee  intends  to seek
indemnification under this paragraph,  it shall notify the Company in writing of
such claim  (hereinafter  referred to as the "Indemnified  Claim").  The Trustee
shall have the right to conduct and manage the defense against such  Indemnified
Claim,  provided,  that the Trustee shall obtain the consent of the Company with
respect to the selection of counsel,  which  consent  shall not be  unreasonably
withheld.  The Trustee may not agree to settle any Indemnified Claim without the
prior written consent of the Company. The Company may participate in such action
with its own counsel; and

                                       2
<PAGE>

      (c) Pay the Trustee an initial  acceptance fee of $1,000 and an annual fee
of $3,000 (it being expressly  understood that the Property shall not be used to
pay such fee). The Company shall pay the Trustee the initial  acceptance fee and
first  year's  fee  at  the  consummation  of  the  IPO  and  thereafter  on the
anniversary  of the Effective  Date. The Trustee shall refund to the Company the
fee (on a pro rata basis) with  respect to any period after the  liquidation  of
the Trust  Fund.  The  Company  shall not be  responsible  for any other fees or
charges of the Trustee  except as may be provided in  paragraph  2(b) hereof (it
being  expressly  understood  that the  Property  shall  not be used to make any
payments to the Trustee under such paragraph).

3.  Limitations  of  Liability.  The  Trustee  shall have no  responsibility  or
liability to:

      (a) Take any action with respect to the  Property,  other than as directed
in  paragraph  1 hereof and the  Trustee  shall have no  liability  to any party
except  for  liability  arising  out of its  own  gross  negligence  or  willful
misconduct;

      (b)  Institute  any  proceeding  for the  collection  of any principal and
income  arising from, or  institute,  appear in or defend any  proceeding of any
kind with  respect  to,  any of the  Property  unless  and  until it shall  have
received instructions from the Company given as provided herein to do so and the
Company  shall have  advanced or  guaranteed  to it funds  sufficient to pay any
expenses incident thereto;

      (c) Change the investment of any Property,  other than in compliance  with
paragraph 1(c);

      (d) Refund any depreciation in principal of any Property;

      (e) Assume that the  authority of any person  designated by the Company to
give instructions hereunder shall not be continuing unless provided otherwise in
such  designation,  or  unless  the  Company  shall  have  delivered  a  written
revocation of such authority to the Trustee;

      (f) The other  parties  hereto or to anyone  else for any action  taken or
omitted  by it, or any action  suffered  by it to be taken or  omitted,  in good
faith  and in the  exercise  of its own  best  judgment,  except  for its  gross
negligence or willful misconduct. The Trustee may rely conclusively and shall be
protected  in acting upon any order,  notice,  demand,  certificate,  opinion or
advice  of  counsel  (including  counsel  chosen  by  the  Trustee),  statement,
instrument,  report or other paper or document (not only as to its due execution
and the validity and  effectiveness of its provisions,  but also as to the truth
and acceptability of any information therein contained) which is believed by the
Trustee,  in good  faith,  to be genuine  and to be signed or  presented  by the
proper  person or  persons.  The  Trustee  shall  not be bound by any  notice or
demand, or any waiver, modification, termination or rescission of this agreement
or any of the terms hereof,  unless evidenced by a written instrument  delivered
to the  Trustee  signed by the  proper  party or parties  and,  if the duties or
rights of the  Trustee  are  affected,  unless it shall  give its prior  written
consent thereto;

                                       3
<PAGE>

      (g)  Verify  the   correctness  of  the   information  set  forth  in  the
Registration  Statement or to confirm or assure that any acquisition made by the
Company or any other action taken by it is as contemplated  by the  Registration
Statement; and

      (h) Pay any  taxes on  behalf of the  Trust  Account  (it being  expressly
understood  that the  Property  shall not be used to pay any such taxes and that
such  taxes,  if any,  shall be paid by the  Company  from funds not held in the
Trust Account).

4. Termination. This Agreement shall terminate as follows:

      (a) If the Trustee gives written  notice to the Company that it desires to
resign under this  Agreement,  the Company shall use its  reasonable  efforts to
locate a successor  trustee.  At such time that the Company notifies the Trustee
that a  successor  trustee has been  appointed  by the Company and has agreed to
become  subject to the terms of this  Agreement,  the Trustee shall transfer the
management  of the Trust  Account to the  successor  trustee,  including but not
limited to the transfer of copies of the reports and statements  relating to the
Trust Account,  whereupon this Agreement  shall  terminate;  provided,  however,
that, in the event that the Company does not locate a successor  trustee  within
ninety days of receipt of the resignation  notice from the Trustee,  the Trustee
may submit an application to have the Property  deposited with the United States
District Court for the Southern District of New York and upon such deposit,  the
Trustee shall be immune from any liability whatsoever;

      (b) At such time that the Trustee has  completed  the  liquidation  of the
Trust Account in accordance  with the provisions of paragraph  1(i) hereof,  and
distributed  the Property in accordance  with the provisions of the  Termination
Letter, this Agreement shall terminate except with respect to Paragraph 2(b); or

      (c) On such date after  _____________,  2007 when the Trustee deposits the
Property with the United States District Court for the Southern  District of New
York in the event  that,  prior to such date,  the  Trustee  has not  received a
Termination Letter from the Company pursuant to paragraph 1(i).

5. Miscellaneous.

      (a) The Company and the Trustee  each  acknowledge  that the Trustee  will
follow the security procedures set forth below with respect to funds transferred
from the Trust Account. Upon receipt of written  instructions,  the Trustee will
confirm  such  instructions  with  an  Authorized  Individual  at an  Authorized
Telephone  Number listed on the attached  Exhibit C. The Company and the Trustee
will each restrict access to confidential  information relating to such security
procedures  to  authorized  persons.  Each  party must  notify  the other  party
immediately if it has reason to believe  unauthorized  persons may have obtained
access to such  information,  or of any change in its authorized  personnel.  In
executing funds  transfers,  the Trustee will rely upon account numbers or other
identifying  numbers of a beneficiary,  beneficiary's bank or intermediary bank,
rather than names.  The Trustee  shall not be liable for any loss,  liability or
expense  resulting  from any error in an  account  number  or other  identifying
number, provided it has accurately transmitted the numbers provided.

                                       4
<PAGE>

      (b) This  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.  It may  be  executed  in  several
counterparts, each one of which shall constitute an original, and together shall
constitute but one instrument.

      (c) This Agreement  contains the entire agreement and understanding of the
parties hereto with respect to the subject matter hereof.  This Agreement or any
provision hereof may only be changed, amended or modified by a writing signed by
each of the parties hereto; provided, however, that no such change, amendment or
modification  may be made  without the prior  written  consent of EBC. As to any
claim,  cross-claim or counterclaim in any way relating to this Agreement,  each
party waives the right to trial by jury.

      (d) The parties hereto consent to the  jurisdiction and venue of any state
or federal  court  located in the City of New York,  Borough of  Manhattan,  for
purposes of resolving any disputes hereunder.

      (e) Any notice,  consent or request to be given in connection  with any of
the terms or provisions of this Agreement  shall be in writing and shall be sent
by express mail or similar  private courier  service,  by certified mail (return
receipt requested), by hand delivery or by facsimile transmission:

                  if to the Trustee, to:

                           Continental Stock Transfer
                             & Trust Company
                           17 Battery Place
                           New York, New York 10004
                           Attn:    Steven G. Nelson
                           Fax No.:  (212) 509-5150

                  if to the Company, to:

                           Chardan South China Acquisition Corporation
                           625 Broadway
                           Suite 1111
                           San Diego, California 92101
                           Attn:    Jiangnan Huang, Chairman
                           Fax No.:  (858) 847-9090

                                       5
<PAGE>

                  in either case with a copy to:

                           EarlyBirdCapital, Inc.
                           275 Madison Avenue, Suite 1203
                           New York, New York 10016
                           Attn:    David M. Nussbaum, Chairman
                           Fax No.:  (212) 269-3796

      (f) This  Agreement  may not be assigned by the Trustee  without the prior
consent of the Company.

      (g) Each of the Trustee and the Company hereby  represents that it has the
full right and power and has been duly  authorized to enter into this  Agreement
and to perform its respective obligations as contemplated hereunder. The Trustee
acknowledges and agrees that it shall not make any claims or proceed against the
Trust  Account,  including  by way of set-off,  and shall not be entitled to any
funds in the Trust Account under any circumstance.

      (h) Each of the Company and the Trustee hereby  acknowledge  that EBC is a
third party beneficiary of this Agreement.

                                       6
<PAGE>

            IN WITNESS  WHEREOF,  the parties have duly executed this Investment
Management Trust Agreement as of the date first written above.

                                     CONTINENTAL STOCK TRANSFER & TRUST COMPANY,
                                     as Trustee

                                     By: ____________________________
                                          Name:
                                          Title:

                                     CHARDAN SOUTH CHINA ACQUISITION CORPORATION

                                     By: ____________________________
                                         Name: Jiangnan Huang
                                         Title: Chairman

                                       7
<PAGE>

                                                                       EXHIBIT A

                             [LETTERHEAD OF COMPANY]

                                  [INSERT DATE]

Continental Stock Transfer
  & Trust Company
17 Battery Place
New York, New York 10004
Attn:  Steven Nelson

      Re: Trust Account No. 530-_____________________Termination Letter

Gentlemen:

      Pursuant to paragraph 1(i) of the Investment  Management  Trust  Agreement
between Chardan South China Acquisition  Corporation ("Company") and Continental
Stock Transfer & Trust Company ("Trustee"), dated as of __________, 2005 ("Trust
Agreement"),  this is to  advise  you  that  the  Company  has  entered  into an
agreement ("Business Agreement") with __________________  ("Target Business") to
consummate a business combination with Target Business ("Business  Combination")
on or about  [INSERT  DATE].  The Company  shall notify you at least 48 hours in
advance of the  actual  date of the  consummation  of the  Business  Combination
("Consummation Date").

      In accordance with the terms of the Trust  Agreement,  we hereby authorize
you to commence  liquidation  of the Trust  Account to the effect  that,  on the
Consummation  Date,  all of funds held in the Trust Account will be  immediately
available  for transfer to the account or accounts that the Company shall direct
on the Consummation Date.

      On the Consummation  Date (i) counsel for the Company shall deliver to you
written  notification that (a) the Business Combination has been consummated and
(b) the  provisions  of Section  11-51-302(6)  and Rule  51-3.4 of the  Colorado
Statute  have  been met,  and (ii) the  Company  shall  deliver  to you  written
instructions with respect to the transfer of the funds held in the Trust Account
("Instruction  Letter").  You are hereby directed and authorized to transfer the
funds held in the Trust Account  immediately  upon your receipt of the counsel's
letter  and  the  Instruction  Letter,  in  accordance  with  the  terms  of the
Instruction Letter. In the event that certain deposits held in the Trust Account
may not be liquidated by the Consummation Date without penalty,  you will notify
the  Company of the same and the  Company  shall  direct you as to whether  such
funds should remain in the Trust Account and distributed  after the Consummation
Date to the Company. Upon the distribution of all the funds in the Trust Account
pursuant to the terms hereof, the Trust Agreement shall be terminated.

                                       8
<PAGE>

      In the event  that the  Business  Combination  is not  consummated  on the
Consummation  Date  described in the notice thereof and we have not notified you
on or before the original Consummation Date of a new Consummation Date, then the
funds held in the Trust  Account  shall be  reinvested  as provided in the Trust
Agreement on the business day immediately following the Consummation Date as set
forth in the notice.

                                     Very truly yours,

                                     CHARDAN SOUTH CHINA ACQUISITION CORPORATION

                                     By:________________________________
                                           Jiangnan Huang, Chairman

                                     By:________________________________
                                           Kerry Propper, Secretary
cc: EarlyBirdCapital, Inc.

                                       9
<PAGE>

                                                                       EXHIBIT B

                             [LETTERHEAD OF COMPANY]

                                  [INSERT DATE]

Continental Stock Transfer
  & Trust Company
17 Battery Place
New York, New York 10004
Attn:

      Re: Trust Account No. 530-__________________Termination Letter

Gentlemen:

      Pursuant to paragraph 1(i) of the Investment  Management  Trust  Agreement
between Chardan South China Acquisition  Corporation ("Company") and Continental
Stock  Transfer  & Trust  Company  ("Trustee"),  dated as of  ___________,  2005
("Trust  Agreement"),  this is to advise you that the Company has been unable to
effect a  Business  Combination  with a Target  Company  within  the time  frame
specified in the Company's prospectus relating to its IPO.

      In accordance with the terms of the Trust Agreement, we hereby (a) certify
to you that the  provisions  of  Section  11-51-302(6)  and Rule  51-3.4  of the
Colorado Statute have been met and (b) authorize you, to commence liquidation of
the Trust Account.  You will notify the Company and the paying agent holding the
Trust Account ("Designated Paying Agent") in writing as to when all of the funds
in the Trust Account will be available for immediate transfer ("Transfer Date").
The  Designated  Paying Agent shall  thereafter  notify you as to the account or
accounts  of the  Designated  Paying  Agent that the funds in the Trust  Account
should be  transferred  to on the Transfer  Date so that the  Designated  Paying
Agent may commence  distribution  of such funds in accordance with the Company's
instructions.  You shall have no  obligation  to oversee the  Designated  Paying
Agent's  distribution  of the funds.  Upon the payment to the Designated  Paying
Agent of all the  funds in the  Trust  Account,  the  Trust  Agreement  shall be
terminated.

                                     Very truly yours,

                                     CHARDAN SOUTH CHINA ACQUISITION CORPORATION

                                     By:________________________________
                                           Jiangnan Huang, Chairman

                                     By:________________________________
                                           Kerry Propper, Secretary
cc: EarlyBirdCapital, Inc.

                                       10
<PAGE>

                                    EXHIBIT C

AUTHORIZED INDIVIDUAL(S)                                        AUTHORIZED
FOR TELEPHONE CALL BACK                                      TELEPHONE NUMBER(S)
-----------------------                                      -------------------

COMPANY:

Chardan South China Acquisition Corporation
625 Broadway
Suite 1111
San Diego, California 92101
Attn:  Jiangnan Huang, Chairman                               (858) 847-9000

TRUSTEE:

Continental Stock Transfer
  & Trust Company
17 Battery Place
New York, New York 10004
Attn:  Steven G. Nelson, Chairman                             (212) 845-3200

                                       11

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