Document:

EXHIBIT 10.2

                                                     April 30, 2005

Chardan China Acquisition Corp. III
625 Broadway
Suite 1111
San Diego, California 92101

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

                  Re:   Initial Public Offering

Gentlemen:

         The  undersigned  stockholder,  officer and  director of Chardan  China
Acquisition Corp. III ("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 12 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 (i) cause
the Trust  Fund (as  defined  in the  Letter of  Intent)  to be  liquidated  and
distributed  to the holders of IPO Shares and (ii) 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 and any remaining
net assets of the Company 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 Fund for any reason
whatsoever.  In the event of the  liquidation of the Trust Fund, the undersigned
agrees to  indemnify  and hold  harmless  the  Company,  pro rata with the other
directors of the Company and several individuals  affiliated with companies they
are associated with based on the number of Insider Shares  beneficially owned 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 contracted for, 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.
<PAGE>

Chardan China Acquisition Corp. III
EarlyBirdCapital, Inc.
April 30, 2005
Page 2

         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 and contractual
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 ("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, Chardan Capital, LLC ("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.

<PAGE>

Chardan China Acquisition Corp. III
EarlyBirdCapital, Inc.
April 30, 2005
Page 3

         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.

         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  Executive  Vice  President  and
Director 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 Item 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 Executive Vice President and a Director 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 and obtaining the  Information  and
the undersigned hereby releases them from liability for any damage whatsoever in
that connection.
<PAGE>

Chardan China Acquisition Corp. III
EarlyBirdCapital, Inc.
April 30, 2005
Page 4

         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.  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,  (ii)  waives  any  objection  to such
exclusive  jurisdiction and that such courts represent an inconvenient forum and
(iii) irrevocably  agrees to appoint Graubard Miller as agent for the service of
process  in the State of New York to  receive,  for the  undersigned  and on his
behalf,  service of process in any  Proceeding.  If for any reason such agent is
unable to act as such, the undersigned  will promptly notify the Company and EBC
and appoint a substitute  agent acceptable to each of the Company and EBC within
30 days and  nothing in this  letter  will  affect the right of either  party to
serve process in any other manner permitted by law.

         12.  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;  (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.

                                              Li Zhang
                                              --------
                                              Print Name of Insider

                                              /s/ Li Zhang
                                              ------------
                                              Signature
<PAGE>

EXHIBIT A

         LI ZHANG  has been our  executive  vice  president  and a member of our
board of directors since our inception and has been the chief executive  officer
and a member of the board of directors of Chardan China II since its  inception.
He has also  served  as chief  financial  officer  and a member  of the board of
directors of Chardan  China  Acquisition  Corp.  since its inception in December
2003. Mr. Zhang has also served as a member and manager of Chardan Capital,  LLC
since August 2003.  Since  September  2001,  Mr. Zhang has been a principal  and
president  of Pacific Asia  Ventures,  LLC, a company  that  provides  strategic
consulting  services for Chinese-U.S.  business  relationships.  Since September
2002,  he has been an advisor to Mera  Pharmaceuticals,  Inc. Mr. Zhang has also
been an advisor for  Parentech,  Inc., a company  that  produces  products  that
enhance the  development  and well-being of infants,  since December 2002.  From
January 1994 until September 2001, Mr. Zhang served as chairman of Sino-American
Investment,  Inc., an investment  consulting  firm.  From  September  1996 until
September  1998, Mr. Zhang also served as a consultant to the China Retail Fund,
a venture  capital  fund that  invests  in retail  ventures  with  backing  from
American  International  Group.  Mr.  Zhang has two  decades  of  experience  in
establishing  commercial and financial  relationships between Chinese companies,
government  agencies and Western investors.  Among his other affiliations during
that time, he was chairman of Sino-American  Power, Ltd., an organization formed
for the purpose of building electric power generating plants in China, from 1994
through 1996. Mr. Zhang received a B.A. from the Shenyang  Teacher's  University
in the PRC.EXHIBIT 10.3

                                                     April 30, 2005

Chardan China Acquisition Corp. III
625 Broadway
Suite 1111
San Diego, California 92101

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

                  Re:      Initial Public Offering

Gentlemen:

         The  undersigned  stockholder,  officer and  director of Chardan  China
Acquisition Corp. III ("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 12 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 (i) cause
the Trust  Fund (as  defined  in the  Letter of  Intent)  to be  liquidated  and
distributed  to the holders of IPO Shares and (ii) 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 and any remaining
net assets of the Company 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 Fund for any reason
whatsoever.  In the event of the  liquidation of the Trust Fund, the undersigned
agrees to  indemnify  and hold  harmless  the  Company,  pro rata with the other
directors of the Company and several individuals  affiliated with companies they
are associated with based on the number of Insider Shares  beneficially owned 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 contracted for, 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.

<PAGE>

Chardan China Acquisition Corp. III
EarlyBirdCapital, Inc.
April 30, 2005
Page 2

         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 and contractual
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 ("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 the
undersigned  shall 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.

<PAGE>

Chardan China Acquisition Corp. III
EarlyBirdCapital, Inc.
April 30, 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  Chief  Executive  Officer  and a
Director 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 Item 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 Chief Executive Officer and a Director 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 and obtaining the  Information  and
the undersigned hereby releases them from liability for any damage whatsoever in
that connection.
<PAGE>

Chardan China Acquisition Corp. III
EarlyBirdCapital, Inc.
April 30, 2005
Page 4

         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.  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,  (ii)  waives  any  objection  to such
exclusive  jurisdiction and that such courts represent an inconvenient forum and
(iii) irrevocably  agrees to appoint Graubard Miller as agent for the service of
process  in the State of New York to  receive,  for the  undersigned  and on his
behalf,  service of process in any  Proceeding.  If for any reason such agent is
unable to act as such, the undersigned  will promptly notify the Company and EBC
and appoint a substitute  agent acceptable to each of the Company and EBC within
30 days and  nothing in this  letter  will  affect the right of either  party to
serve process in any other manner permitted by law.

         12.  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;  (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.

                                           Kerry Propper
                                           -------------
                                           Print Name of Insider

                                           /s/ Kerry Propper
                                           -----------------
                                           Signature
<PAGE>

EXHIBIT A

         KERRY  PROPPER has been our chief  executive  officer,  secretary and a
member of the board of  directors  since  our  inception  and has been the chief
financial  officer,  secretary and a member of the board of directors of Chardan
China II since its inception.  Mr. Propper has also served as the executive vice
president  and a member of the board of directors of Chardan  China  Acquisition
Corp.  since its inception in December  2003. Mr. Propper has been the owner and
chief  executive  officer  of  Chardan  Capital  Markets  LLC,  a New York based
broker/dealer,  since  July 2003.  He has also been a  managing  member of SUJG,
Inc., an investment company since April 2005. Mr. Propper also sits on the board
of directors of Source  Atlantic  Inc., a health care  consulting  firm based in
Massachuesetts.  Mr. Propper was a founder,  and from February 1999 to July 2003
owner  and  managing  director  of  Windsor  Capital  Advisors,  a full  service
brokerage  firm also based in New York.  Mr.  Propper  also  founded The Private
Capital Group LLC, a small private  investment  firm  specializing in hard money
loans and  convertible  preferred  debt and equity  offerings  for small  public
companies, in May 2000 and was affiliated with it until December 2003. From July
1997 until  February  1999,  Mr. Propper worked at Aegis Capital Corp., a broker
dealer and member firm of the NASD. Mr. Propper  received his B.A. (with honors)
in Economics  and  International  Studies from Colby  College and studied at the
London School of Economics. Kerry Propper is Dr. Propper's son.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]