Document:

NUMBER                    (SEE REVERSE SIDE FOR LEGEND)                 WARRANTS
_______       (THIS WARRANT WILL BE VOID IF NOT EXERCISED PRIOR TO
                 5:00 P.M. NEW YORK CITY TIME, __________, 2009

                       CHARDAN CHINA ACQUISITION CORP. II
                                      CUSIP
                                     WARRANT

THIS CERTIFIES THAT, for value received

is the registered holder of a Warrant or Warrants expiring  ________,  2009 (the
"Warrant") to purchase one fully paid and non-assessable  share of Common Stock,
par value $.0001 per share ("Shares"),  of Chardan China Acquisition Corp. II, a
Delaware corporation (the "Company"), for each Warrant evidenced by this Warrant
Certificate.  The  Warrant  entitles  the holder  thereof to  purchase  from the
Company,  commencing on the later of (i) the  Company's  completion of a merger,
capital stock exchange,  asset acquisition or other similar business combination
and (ii) ______________, 2006, such number of Shares of the Company at the price
of $5.00 per share  (subject to  adjustment),  upon  surrender  of this  Warrant
Certificate  and  payment  of the  Warrant  Price at the office or agency of the
Warrant  Agent,  Continental  Stock Transfer & Trust Company (such payment to be
made by check  made  payable  to the  Warrant  Agent),  but only  subject to the
conditions set forth herein and in the Warrant Agreement between the Company and
Continental Stock Transfer & Trust Company.  The Warrant Agreement provides that
upon the  occurrence  of  certain  events  the  Warrant  Price and the number of
Warrant Shares purchasable hereunder, set forth on the face hereof, may, subject
to certain  conditions,  be  adjusted.  The term  Warrant  Price as used in this
Warrant  Certificate  refers  to the  price  per  Share at which  Shares  may be
purchased at the time the Warrant is  exercised.

      No fraction of a Share will be issued upon any  exercise of a Warrant.  If
the holder of a Warrant  would be entitled to receive a fraction of a Share upon
any exercise of a Warrant,  the Company shall,  upon such exercise,  round up to
the nearest whole number the number of Shares to be issued to such holder.

      Upon any  exercise of the  Warrant for less than the total  number of full
Shares  provided  for  herein,  there shall be issued to the  registered  holder
hereof or his assignee a new Warrant  Certificate  covering the number of Shares
for which the Warrant has not been exercised.

      Warrant  Certificates,  when  surrendered  at the  office or agency of the
Warrant  Agent by the  registered  holder  hereof in person or by attorney  duly
authorized  in  writing,  may be  exchanged  in the  manner  and  subject to the
limitations  provided  in the  Warrant  Agreement,  but  without  payment of any
service charge, for another Warrant Certificate or Warrant  Certificates of like
tenor and evidencing in the aggregate a like number of Warrants.

      Upon  due  presentment  for   registration  of  transfer  of  the  Warrant
Certificate  at the  office  or  agency  of the  Warrant  Agent,  a new  Warrant
Certificate  or  Warrant  Certificates  of  like  tenor  and  evidencing  in the
aggregate  a like  number  of  Warrants  shall be issued  to the  transferee  in
exchange for this Warrant  Certificate,  subject to the limitations  provided in
the Warrant  Agreement,  without  charge except for any  applicable tax or other
governmental charge.

      The Company and the Warrant Agent may deem and treat the registered holder
as the absolute owner of this Warrant Certificate  (notwithstanding any notation
of ownership  or other  writing  hereon made by anyone),  for the purpose of any
exercise hereof, of any distribution to the registered holder, and for all other
purposes, and neither the Company nor the Warrant Agent shall be affected by any
notice to the contrary.

      This Warrant does not entitle the  registered  holder to any of the rights
of a stockholder of the Company.

      The  Company  reserves  the right to call the Warrant at any time prior to
its  exercise,  with a notice of call in writing to the holders of record of the
Warrant,  giving  30 days'  notice of such  call at any time  after the  Warrant
becomes exercisable if the last sale price of the Shares has been at least $8.50
per  share  (subject  to  adjustment)  on each of 20  trading  days  within  any
30-trading  day  period  ending on the third  business  day prior to the date on
which notice of such call is given. The call price of the Warrants is to be $.01
per Warrant. Any Warrant either not exercised or tendered back to the Company by
the end of the date  specified  in the notice of call shall be  canceled  on the
books of the Company and have no further value except for the $.01 call price.

By

________________________                        ________________________
               Secretary                        Chairman of the Board

<PAGE>

                                SUBSCRIPTION FORM
      To Be Executed by the Registered Holder in Order to Exercise Warrants

The undersigned Registered Holder irrevocably elects to exercise  ______________
Warrants represented by this Warrant Certificate,  and to purchase the shares of
Common Stock  issuable  upon the exercise of such  Warrants,  and requests  that
Certificates for such shares shall be issued in the name of

________________________________________________________________________________
                     (PLEASE TYPE OR PRINT NAME AND ADDRESS)
________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
                 (SOCIAL SECURITY OR TAX IDENTIFICATION NUMBER)

and be delivered to
                    ____________________________________________________________

                     (PLEASE PRINT OR TYPE NAME AND ADDRESS)

________________________________________________________________________________
and, if such number of Warrants shall not be all the Warrants  evidenced by this
Warrant  Certificate,  that a new  Warrant  Certificate  for the balance of such
Warrants be registered in the name of, and delivered to, the  Registered  Holder
at the address stated below:

Dated:
        ____________________________           _________________________________
                                               (SIGNATURE)
                                               _________________________________

                                               _________________________________
                                               (ADDRESS)

                                               _________________________________
                                               (TAX IDENTIFICATION NUMBER)

                                   ASSIGNMENT
       To Be Executed by the Registered Holder in Order to Assign Warrants

For Value Received, ___________________   hereby sell, assign, and transfer unto

________________________________________________________________________________
                     (PLEASE TYPE OR PRINT NAME AND ADDRESS)

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
                 (SOCIAL SECURITY OR TAX IDENTIFICATION NUMBER)

________________________________________________________________________________

and be delivered to
                      __________________________________________________________
                     (PLEASE PRINT OR TYPE NAME AND ADDRESS)

______________________  of the Warrants represented by this Warrant Certificate,
and hereby irrevocably constitute and appoint  _________________________________
Attorney to transfer this Warrant Certificate on the books of the Company,  with
full power of substitution in the premises.

Dated:
        ____________________________           _________________________________
                                               (SIGNATURE)

THE SIGNATURE TO THE ASSIGNMENT OF THE SUBSCRIPTION  FORM MUST CORRESPOND TO THE
NAME  WRITTEN  UPON THE FACE OF THIS WARRANT  CERTIFICATE  IN EVERY  PARTICULAR,
WITHOUT  ALTERATION  OR  ENLARGEMENT  OR ANY  CHANGE  WHATSOEVER,  AND  MUST  BE
GUARANTEED  BY A  COMMERCIAL  BANK OR  TRUST  COMPANY  OR A  MEMBER  FIRM OF THE
AMERICAN  STOCK  EXCHANGE,  NEW YORK STOCK  EXCHANGE,  PACIFIC STOCK EXCHANGE OR
CHICAGO STOCK EXCHANGE.THE  REGISTERED  HOLDER  OF THIS  PURCHASE  OPTION BY ITS  ACCEPTANCE  HEREOF,
AGREES THAT IT WILL NOT SELL,  TRANSFER OR ASSIGN THIS PURCHASE  OPTION EXCEPT
AS HEREIN  PROVIDED AND THE REGISTERED  HOLDER OF THIS PURCHASE  OPTION AGREES
THAT IT WILL NOT SELL, TRANSFER,  ASSIGN,  PLEDGE OR HYPOTHECATE THIS PURCHASE
OPTION FOR A PERIOD OF ONE YEAR FOLLOWING THE EFFECTIVE  DATE (DEFINED  BELOW)
TO ANYONE OTHER THAN (I)  EARLYBIRDCAPITAL,  INC. ("EBC") OR AN UNDERWRITER OR
A  SELECTED  DEALER  IN  CONNECTION  WITH THE  OFFERING,  OR (II) A BONA  FIDE
OFFICER OR PARTNER OF EBC OR OF ANY SUCH UNDERWRITER OR SELECTED DEALER.

THIS  PURCHASE  OPTION  IS NOT  EXERCISABLE  PRIOR  TO THE  LATER  OF (I)  THE
CONSUMMATION  BY CHARDAN CHINA  ACQUISITION  CORP. II ("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 (DEFINED HEREIN)) AND (II)  ______________,
2006.  VOID AFTER 5:00 P.M. EASTERN TIME, _____________, 2010.

                             UNIT PURCHASE OPTION

                             For the Purchase of

                               __________ Units

                                      of

                      CHARDAN CHINA ACQUISITION CORP. II

1.    Purchase Option.

            THIS CERTIFIES  THAT, in  consideration  of $_____ duly paid by or
on behalf of  ____________________  ("Holder"),  as  registered  owner of this
Purchase Option, to Chardan China Acquisition Corp. II ("Company"),  Holder is
entitled,  at any  time  or  from  time  to time  upon  the  later  of (i) the
consummation   of  a  Business   Combination   and  (ii)   ___________,   2006
("Commencement   Date"),   and  at  or  before   5:00  p.m.,   Eastern   Time,
_____________,  2010  ("Expiration  Date"),  but not thereafter,  to subscribe
for,  purchase and receive,  in whole or in part, up to ____________  (______)
units  ("Units") of the Company,  each Unit  consisting of one share of common
stock of the Company,  par value $.0001 per share  ("Common  Stock"),  and two
warrants   ("Warrant(s)")   expiring  four  years  from  the  effective   date
("Effective Date") of the registration  statement  ("Registration  Statement")
pursuant  to which  Units are  offered  for sale to the  public  ("Offering").
Each  Warrant  is the  same  as the  warrants  included  in  the  Units  being
registered  for  sale  to the  public  by way  of the  Registration  Statement
("Public  Warrants")  except that the Warrants have an exercise  price of $___
per share. If the Expiration Date is a day on which banking  institutions  are
authorized by law to close,  then this Purchase Option may be exercised on the
next  succeeding  day  which is not such a day in  accordance  with the  terms
herein.  During the period ending on the  Expiration  Date, the Company agrees
not to take  any  action  that  would  terminate  the  Purchase  Option.  This
Purchase  Option  is  initially  exercisable  at $___ per  Unit so  purchased;
provided,  however, that upon the occurrence of any of the events specified in
Section 6 hereof,  the rights granted by this Purchase  Option,  including the
exercise  price per Unit and the number of Units (and  shares of Common  Stock
and Warrants) to be received upon such exercise,  shall be adjusted as therein
specified.  The term  "Exercise  Price" shall mean the initial  exercise price
or the adjusted exercise price, depending on the context.

                                       1
<PAGE>

2.    Exercise.

      2.1   Exercise  Form.  In order to exercise this  Purchase  Option,  the
exercise  form  attached  hereto  must  be duly  executed  and  completed  and
delivered to the Company,  together with this  Purchase  Option and payment of
the  Exercise  Price  for the  Units  being  purchased  payable  in cash or by
certified   check  or  official  bank  check.  If  the   subscription   rights
represented  hereby  shall not be  exercised  at or before 5:00 p.m.,  Eastern
time, on the  Expiration  Date this  Purchase  Option shall become and be void
without  further  force or effect,  and all rights  represented  hereby  shall
cease and expire.

      2.2   Legend.  Each certificate for the securities  purchased under this
Purchase  Option shall bear a legend as follows  unless such  securities  have
been registered under the Securities Act of 1933, as amended ("Act"):

            "The  securities  represented  by this  certificate  have not been
            registered  under the Securities  Act of 1933, as amended  ("Act")
            or  applicable  state law. The  securities  may not be offered for
            sale,  sold  or  otherwise   transferred  except  pursuant  to  an
            effective  registration statement under the Act, or pursuant to an
            exemption from  registration  under the Act and  applicable  state
            law."

      2.3   Cashless Exercise.

            2.3.1 Determination  of  Amount.  In  lieu of the  payment  of the
Exercise  Price  multiplied  by the  number of Units for which  this  Purchase
Option is  exercisable  (and in lieu of being entitled to receive Common Stock
and  Warrants)  in the manner  required by Section  2.1, the Holder shall have
the right (but not the  obligation) to convert any exercisable but unexercised
portion of this Purchase  Option into Units  ("Conversion  Right") as follows:
upon  exercise  of the  Conversion  Right,  the Company  shall  deliver to the
Holder  (without  payment by the Holder of any of the Exercise  Price in cash)
that  number of Units (or that number of shares of Common  Stock and  Warrants
comprising  that number of Units) equal to the  quotient  obtained by dividing
(x) the  "Value"  (as defined  below) of the  portion of the  Purchase  Option
being  converted  by (y) the  Current  Market  Value (as defined  below).  The
"Value" of the portion of the Purchase  Option being converted shall equal the
remainder  derived from  subtracting (a) (i) the Exercise Price  multiplied by
(ii) the number of Units  underlying the portion of this Purchase Option being
converted  from  (b) the  Current  Market  Value of a Unit  multiplied  by the
number  of  Units   underlying  the  portion  of  the  Purchase  Option  being
converted.  As used herein,  the term  "Current  Market Value" per Unit at any
date means:  (A) in the event that  neither the Units nor Public  Warrants are
still trading,  the remainder  derived from subtracting (x) the exercise price
of the Warrants  multiplied  by the number of shares of Common Stock  issuable
upon  exercise of the  Warrants  underlying  one Unit from (y) (i) the Current
Market  Price of the Common Stock  multiplied  by (ii) the number of shares of
Common Stock  underlying  one Unit,  which shall  include the shares of Common
Stock  underlying  the Warrants  included in such Unit;  (B) in the event that
the Units,  Common  Stock and Public  Warrants are still  trading,  (i) if the
Units are listed on a  national  securities  exchange  or quoted on the Nasdaq

                                       2
<PAGE>

National  Market,  Nasdaq  SmallCap  Market  or NASD OTC  Bulletin  Board  (or
successor  exchange),  the  last  sale  price of the  Units  in the  principal
trading market for the Units as reported by the exchange,  Nasdaq or the NASD,
as the case may be, on the last  trading day  preceding  the date in question;
or (ii) if the  Units are not  listed on a  national  securities  exchange  or
quoted on the Nasdaq National  Market,  Nasdaq SmallCap Market or the NASD OTC
Bulletin  Board  (or  successor  exchange),  but is  traded  in  the  residual
over-the-counter  market,  the closing bid price for Units on the last trading
day preceding the date in question for which such  quotations  are reported by
the Pink Sheets,  LLC or similar publisher of such quotations;  and (C) in the
event that the Units are not still  trading  but the  Common  Stock and Public
Warrants  underlying the Units are still trading,  the Current Market Price of
the Common  Stock  plus the  product of (x) the  Current  Market  Price of the
Public  Warrants and (y) the number of shares of Common Stock  underlying  the
Warrants  included in one Unit.  The "Current  Market Price" shall mean (i) if
the  Common  Stock  (or  Public  Warrants,  as the case may be) is listed on a
national securities  exchange or quoted on the Nasdaq National Market,  Nasdaq
SmallCap Market or NASD OTC Bulletin Board (or successor  exchange),  the last
sale price of the Common Stock (or Public  Warrants) in the principal  trading
market for the Common Stock as reported by the  exchange,  Nasdaq or the NASD,
as the case may be, on the last  trading day  preceding  the date in question;
(ii) if the  Common  Stock  (or  Public  Warrants,  as the case may be) is not
listed on a national  securities  exchange  or quoted on the  Nasdaq  National
Market,  Nasdaq  SmallCap  Market or the NASD OTC Bulletin Board (or successor
exchange), but is traded in the residual  over-the-counter market, the closing
bid price for the Common  Stock (or Public  Warrants)  on the last trading day
preceding the date in question for which such  quotations  are reported by the
Pink Sheets,  LLC or similar  publisher of such  quotations;  and (iii) if the
fair market value of the Common Stock cannot be determined  pursuant to clause
(i) or (ii) above,  such price as the Board of Directors of the Company  shall
determine,  in good faith.  In the event the Public  Warrants have expired and
are no longer  exercisable,  no "Value"  shall be  attributed  to the Warrants
underlying  this  Purchase  Option.  Additionally,  in  the  event  that  this
Purchase  Option is  exercised  pursuant  to this  Section  2.3 and the Public
Warrants are still  trading,  the "Value"  shall be reduced by the  difference
between  the  Warrant  Exercise  Price and the  exercise  price of the  Public
Warrants  multiplied by the number of Warrants  underlying  the Units included
in the portion of this Purchase Option being converted.

            2.3.2 Mechanics  of  Cashless  Exercise.   The  Cashless  Exercise
Right  may be  exercised  by the  Holder on any  business  day on or after the
Commencement  Date and not later than the  Expiration  Date by delivering  the
Purchase Option with the duly executed  exercise form attached hereto with the
cashless  exercise section  completed to the Company,  exercising the Cashless
Exercise  Right and  specifying  the total  number  of Units the  Holder  will
purchase pursuant to such Cashless Exercise Right.

                                       3
<PAGE>

3.    Transfer.

      3.1   General  Restrictions.  The  registered  Holder  of this  Purchase
Option,  by its  acceptance  hereof,  agrees that it will not sell,  transfer,
assign,  pledge or hypothecate  this Purchase  Option for a period of one year
following  the Effective  Date to anyone other than (i) EBC or an  underwriter
or a selected  dealer in  connection  with the  Offering,  or (ii) a bona fide
officer or partner of EBC or of any such  underwriter or selected  dealer.  On
and after the first  anniversary  of the Effective  Date,  transfers to others
may  be  made  subject  to  compliance  with  or  exemptions  from  applicable
securities  laws. In order to make any permitted  assignment,  the Holder must
deliver to the Company the assignment  form attached  hereto duly executed and
completed,  together  with the  Purchase  Option and  payment of all  transfer
taxes,  if any,  payable in  connection  therewith.  The Company  shall within
five business  days transfer this Purchase  Option on the books of the Company
and shall  execute and deliver a new  Purchase  Option or Purchase  Options of
like tenor to the appropriate  assignee(s)  expressly  evidencing the right to
purchase the aggregate number of Units  purchasable  hereunder or such portion
of such number as shall be contemplated by any such assignment.

      3.2   Restrictions  Imposed  by the Act.  The  securities  evidenced  by
this  Purchase  Option  shall  not be  transferred  unless  and  until (i) the
Company  has  received  the  opinion  of  counsel  for  the  Holder  that  the
securities  may be  transferred  pursuant to an  exemption  from  registration
under the Act and applicable  state securities laws, the availability of which
is  established  to the  reasonable  satisfaction  of the Company (the Company
hereby   agreeing  that  the  opinion  of  Graubard  Miller  shall  be  deemed
satisfactory  evidence  of  the  availability  of an  exemption),  or  (ii)  a
registration  statement  or a  post-effective  amendment  to the  Registration
Statement  relating  to such  securities  has been  filed by the  Company  and
declared  effective by the Securities  and Exchange  Commission and compliance
with applicable state securities law has been established.

4.    New Purchase Options to be Issued.

      4.1   Partial  Exercise  or  Transfer.  Subject to the  restrictions  in
Section 3 hereof,  this Purchase  Option may be exercised or assigned in whole
or in part.  In the event of the exercise or  assignment  hereof in part only,
upon  surrender of this Purchase  Option for  cancellation,  together with the
duly  executed  exercise or  assignment  form and funds  sufficient to pay any
Exercise  Price and/or  transfer  tax, the Company shall cause to be delivered
to the  Holder  without  charge a new  Purchase  Option of like  tenor to this
Purchase  Option in the name of the Holder  evidencing the right of the Holder
to  purchase  the  number  of Units  purchasable  hereunder  as to which  this
Purchase Option has not been exercised or assigned.

      4.2   Lost  Certificate.   Upon  receipt  by  the  Company  of  evidence
satisfactory  to it of the loss,  theft,  destruction  or  mutilation  of this
Purchase Option and of reasonably satisfactory  indemnification or the posting
of a bond,  the Company  shall  execute and deliver a new  Purchase  Option of
like tenor and date.  Any such new Purchase  Option  executed and delivered as
a result of such loss,  theft,  mutilation or destruction  shall  constitute a
substitute contractual obligation on the part of the Company.

                                       4
<PAGE>

5.    Registration Rights.

      5.1   Demand Registration.

            5.1.1 Grant of Right.  The Company,  upon written demand ("Initial
Demand  Notice") of the  Holder(s) of at least 50.1% of the  Purchase  Options
and/or the  underlying  Units  and/or  the  underlying  securities  ("Majority
Holders"),  agrees to  register  on one  occasion,  all or any  portion of the
Purchase  Options  requested  by the  Majority  Holders in the Initial  Demand
Notice and all of the securities  underlying such Purchase Options,  including
the Units,  Common  Stock,  the Warrants and the Common Stock  underlying  the
Warrants (collectively,  the "Registrable Securities").  On such occasion, the
Company will file a registration  statement or a  post-effective  amendment to
the Registration  Statement  covering the Registrable  Securities within sixty
days after  receipt of the Initial  Demand  Notice and use its best efforts to
have  such  registration   statement  or  post-effective   amendment  declared
effective as soon as possible  thereafter.  The demand for registration may be
made at any time  during a period of five  years  beginning  on the  Effective
Date.  The Company  covenants and agrees to give written notice of its receipt
of any Initial Demand Notice by any Holder(s) to all other registered  Holders
of the Purchase  Options  and/or the  Registrable  Securities  within ten days
from the date of the receipt of any such Initial Demand Notice.

            5.1.2 Terms.   The  Company  shall  bear  all  fees  and  expenses
attendant to registering  the Registrable  Securities,  including the expenses
of any legal  counsel  selected by the Majority  Holders to represent  them in
connection with the sale of the Registrable Securities,  but the Holders shall
pay  any and all  underwriting  commissions.  The  Company  agrees  to use its
reasonable best efforts to qualify or register the  Registrable  Securities in
such States as are  reasonably  requested by the Majority  Holder(s)  (and any
other Holders whose  Registrable  Securities are included in the  Registration
Statement  pursuant  to Section 5.2  hereof);  provided,  however,  that in no
event shall the Company be required to register the Registrable  Securities in
a  State  in  which  such  registration  would  cause  (i) the  Company  to be
obligated  to qualify to do  business  in such  State,  or would  subject  the
Company  to  taxation  as  a  foreign   corporation  doing  business  in  such
jurisdiction  or  (ii)  the  principal  stockholders  of  the  Company  to  be
obligated  to  escrow  their  shares  of  capital  stock of the  Company.  The
Company shall cause any  registration  statement or  post-effective  amendment
filed  pursuant to the demand  rights  granted  under  Section 5.1.1 to remain
effective for a period of nine  consecutive  months from the effective date of
such registration statement or post-effective amendment.

      5.2   "Piggy-Back" Registration.

            5.2.1 Grant  of  Right.   In  addition  to  the  demand  right  of
registration,  the Holders of the Purchase  Options shall have the right for a
period of seven  years  commencing  on the  Effective  Date,  to  include  the
Registrable  Securities as part of any other  registration of securities filed
by the Company (other than in connection  with a transaction  contemplated  by
Rule 145(a)  promulgated  under the Act or  pursuant  to Form S-8);  provided,
however,   that  if,  in  the  written  opinion  of  the  Company's   managing
underwriter or underwriters,  if any, for such offering,  the inclusion of the
Registrable  Securities,  when added to the securities being registered by the
Company or the selling  stockholder(s),  will exceed the maximum amount of the
Company's  securities which can be marketed (i) at a price reasonably  related
to their then current market value, and (ii) without  materially and adversely
affecting  the entire  offering,  then the  Company  will still be required to
include the Registrable  Securities,  but may require the Holders to agree, in
writing,  to  delay  the  sale  of  all  or any  portion  of  the  Registrable
Securities  for a period of 90 days from the  effective  date of the offering,
provided,  further,  that if the  sale  of any  Registrable  Securities  is so
delayed,  then the number of securities to be sold by all stockholders in such
public  offering during such 90 day period shall be apportioned pro rata among
all such  selling  stockholders,  including  all  holders  of the  Registrable
Securities,  according to the total amount of  securities of the Company owned
by  said  selling  stockholders,  including  all  holders  of the  Registrable
Securities.

                                       5
<PAGE>

            5.2.2 Terms.   The  Company  shall  bear  all  fees  and  expenses
attendant to registering  the Registrable  Securities,  including the expenses
of any legal counsel  selected by the Holders to represent  them in connection
with the sale of the Registrable  Securities but the Holders shall pay any and
all underwriting  commissions  related to the Registrable  Securities.  In the
event of such a proposed  registration,  the  Company  shall  furnish the then
Holders of outstanding  Registrable Securities with not less than fifteen days
written  notice  prior to the  proposed  date of filing  of such  registration
statement.  Such  notice to the  Holders  shall  continue to be given for each
applicable  registration  statement  filed  (during  the  period  in which the
Purchase  Option is  exercisable) by the Company until such time as all of the
Registrable  Securities  have been  registered  and sold.  The  holders of the
Registrable  Securities  shall exercise the  "piggy-back"  rights provided for
herein  by  giving  written  notice,  within  ten days of the  receipt  of the
Company's  notice  of its  intention  to file a  registration  statement.  The
Company shall cause any  registration  statement  filed  pursuant to the above
"piggyback"  rights to remain effective for at least nine months from the date
that  the  Holders  of  the   Registrable   Securities  are  first  given  the
opportunity to sell all of such securities.

      5.3   Damages.  Should the  registration  or the  effectiveness  thereof
required  by  Sections  5.1 and 5.2 hereof be  delayed  by the  Company or the
Company otherwise fails to comply with such provisions,  the Company shall, in
addition to any other  equitable or other relief  available to the  Holder(s),
be  liable  for any and all  incidental,  special  and  consequential  damages
sustained  by the  Holder(s),  including,  but not limited to, the loss of any
profits  that might have been  received  by the holder upon the sale of shares
of  Common  Stock or  Warrants  (and  shares of Common  Stock  underlying  the
Warrants) underlying this Purchase Option.

      5.4   General Terms.

            5.4.1 Indemnification.  The Company shall  indemnify the Holder(s)
of  the  Registrable  Securities  to be  sold  pursuant  to  any  registration
statement  hereunder and each person, if any, who controls such Holders within
the  meaning  of  Section  15 of the Act or  Section  20(a) of the  Securities
Exchange Act of 1934, as amended  ("Exchange  Act"),  against all loss, claim,
damage,  expense or liability  (including all reasonable  attorneys'  fees and
other expenses  reasonably  incurred in investigating,  preparing or defending
against litigation,  commenced or threatened,  or any claim whatsoever whether
arising out of any action between the  underwriter  and the Company or between
the  underwriter  and any third party or  otherwise)  to which any of them may
become  subject  under the Act, the Exchange  Act or  otherwise,  arising from
such  registration  statement  but only to the same  extent  and with the same
effect  as the  provisions  pursuant  to  which  the  Company  has  agreed  to
indemnify  the  underwriters  contained  in  Section  5  of  the  Underwriting
Agreement between the Company,  EBC and the other  underwriters  named therein
dated the Effective  Date. The Holder(s) of the  Registrable  Securities to be
sold  pursuant  to such  registration  statement,  and  their  successors  and
assigns,  shall  severally,  and  not  jointly,  indemnify  the  Company,  its
officers  and  directors  and each  person,  if any,  who controls the Company
within the meaning of Section 15 of the Act or Section  20(a) of the  Exchange
Act,  against all loss,  claim,  damage,  expense or liability  (including all
reasonable   attorneys'  fees  and  other  expenses   reasonably  incurred  in
investigating,  preparing or defending  against any claim whatsoever) to which
they may become subject under the Act, the Exchange Act or otherwise,  arising
from  information  furnished  by  or on  behalf  of  such  Holders,  or  their
successors   or  assigns,   in  writing,   for  specific   inclusion  in  such
registration  statement  to the same  extent  and with the same  effect as the
provisions  contained in Section 5 of the Underwriting  Agreement  pursuant to
which the underwriters have agreed to indemnify the Company.

                                       6
<PAGE>

            5.4.2 Exercise  of Purchase  Options.  Nothing  contained  in this
Purchase  Option shall be construed  as  requiring  the  Holder(s) to exercise
their Purchase  Options or Warrants  underlying such Purchase Options prior to
or  after  the  initial   filing  of  any   registration   statement   or  the
effectiveness thereof.

            5.4.3 Documents  Delivered to Holders.  The Company  shall furnish
EBC, as  representative  of the Holders  participating in any of the foregoing
offerings,  a signed counterpart,  addressed to the participating  Holders, of
(i) an opinion of counsel to the  Company,  dated the  effective  date of such
registration  statement  (and, if such  registration  includes an underwritten
public  offering,  an  opinion  dated  the  date  of  the  closing  under  any
underwriting  agreement  related  thereto),  and (ii) a "cold comfort"  letter
dated  the  effective  date  of  such  registration  statement  (and,  if such
registration  includes an  underwritten  public  offering,  a letter dated the
date  of  the  closing  under  the  underwriting   agreement)  signed  by  the
independent  public  accountants  who have  issued a report  on the  Company's
financial  statements  included in such registration  statement,  in each case
covering  substantially  the same matters  with  respect to such  registration
statement  (and the  prospectus  included  therein)  and,  in the case of such
accountants'  letter,  with respect to events  subsequent  to the date of such
financial  statements,  as are  customarily  covered in  opinions  of issuer's
counsel and in accountants'  letters delivered to underwriters in underwritten
public  offerings of  securities.  The Company shall also deliver  promptly to
EBC, as  representative  of the Holders  participating  in the  offering,  the
correspondence and memoranda  described below and copies of all correspondence
between the  Commission  and the  Company,  its  counsel or  auditors  and all
memoranda  relating  to  discussions  with the  Commission  or its staff  with
respect to the  registration  statement and permit EBC, as  representative  of
the Holders,  to do such  investigation,  upon reasonable advance notice, with
respect  to  information   contained  in  or  omitted  from  the  registration
statement  as  it  deems  reasonably   necessary  to  comply  with  applicable
securities  laws or rules of the National  Association of Securities  Dealers,
Inc. ("NASD").  Such investigation shall include access to books,  records and
properties and  opportunities  to discuss the business of the Company with its
officers and independent  auditors,  all to such reasonable extent and at such
reasonable times and as often as EBC, as representative of the Holders,  shall
reasonably  request.  The  Company  shall  not be  required  to  disclose  any
confidential  information  or other records to EBC, as  representative  of the
Holders,  or to any other  person,  until and unless such  persons  shall have
entered into  reasonable  confidentiality  agreements  (in form and  substance
reasonably  satisfactory  to the  Company),  with  the  Company  with  respect
thereto.

                                       7
<PAGE>

            5.4.4 Underwriting  Agreement.  The  Company  shall  enter into an
underwriting agreement with the managing  underwriter(s),  if any, selected by
any Holders whose  Registrable  Securities  are being  registered  pursuant to
this Section 5, which managing  underwriter shall be reasonably  acceptable to
the Company.  Such  agreement  shall be  reasonably  satisfactory  in form and
substance  to the Company,  each Holder and such  managing  underwriters,  and
shall contain such  representations,  warranties  and covenants by the Company
and such other terms as are  customarily  contained in agreements of that type
used  by the  managing  underwriter.  The  Holders  shall  be  parties  to any
underwriting  agreement  relating to an underwritten sale of their Registrable
Securities   and  may,  at  their   option,   require  that  any  or  all  the
representations,  warranties  and  covenants  of the  Company  to or  for  the
benefit  of such  underwriters  shall  also be made to and for the  benefit of
such Holders.  Such Holders shall not be required to make any  representations
or warranties to or agreements with the Company or the underwriters  except as
they may relate to such Holders and their  intended  methods of  distribution.
Such Holders,  however,  shall agree to such covenants and indemnification and
contribution   obligations   for  selling   stockholders  as  are  customarily
contained  in  agreements  of  that  type  used by the  managing  underwriter.
Further,  such  Holders  shall  execute  appropriate  custody  agreements  and
otherwise  cooperate  fully in the preparation of the  registration  statement
and other documents  relating to any offering in which they include securities
pursuant  to this  Section 5. Each  Holder  shall also  furnish to the Company
such information regarding itself, the Registrable  Securities held by it, and
the intended  method of disposition of such  securities as shall be reasonably
required to effect the registration of the Registrable Securities.

            5.4.5 Rule 144 Sale.  Notwithstanding  anything  contained in this
Section 5 to the contrary,  the Company  shall have no obligation  pursuant to
Section 5.1 or 5.2 for the registration of Registrable  Securities held by any
Holder  (i) where  such Holder  would then be entitled to sell under  Rule 144
within any three-month  period (or such other period prescribed under Rule 144
as may be provided by  amendment  thereof) all of the  Registrable  Securities
then held by such Holder, and (ii) where the number of Registrable  Securities
held by such Holder is within the volume  limitations  under  paragraph (e) of
Rule 144  (calculated  as if such Holder were an affiliate  within the meaning
of Rule 144).

            5.4.6 Supplemental  Prospectus.  Each  Holder  agrees,  that  upon
receipt of any notice  from the  Company  of the  happening  of any event as a
result of which the  prospectus  included in the  Registration  Statement,  as
then in effect,  includes an untrue  statement of a material  fact or omits to
state a material fact  required to be stated  therein or necessary to make the
statements   therein  not  misleading  in  light  of  the  circumstances  then
existing,  such Holder will immediately discontinue disposition of Registrable
Securities  pursuant to the Registration  Statement  covering such Registrable
Securities  until such  Holder's  receipt of the copies of a  supplemental  or
amended  prospectus,  and, if so desired by the  Company,  such  Holder  shall
deliver to the  Company  (at the  expense  of the  Company)  or  destroy  (and
deliver to the Company a certificate of such  destruction)  all copies,  other
than  permanent  file  copies  then  in  such  Holder's  possession,   of  the
prospectus  covering  such  Registrable  Securities  current  at the  time  of
receipt of such notice.

            5.4.7 Rule  144.  The  Company  covenants  that it shall  file any
reports  required  to be filed by it under  the Act and the  Exchange  Act and
shall take such further  action as the holders of  Registrable  Securities may
reasonably  request,  all to the extent  required  from time to time to enable
such holders to sell Registrable  Securities  without  registration  under the
Act within the  limitations  of the  exemptions  provided by Rule 144, as such
rule may be  amended  from time to time,  or any  similar  rule or  regulation
hereafter adopted by the Securities and Exchange Commission.

6.    Adjustments.

      6.1  Adjustments  to  Exercise  Price  and  Number  of  Securities.  The
Exercise Price and the number of Units  underlying  the Purchase  Option shall
be subject to adjustment from time to time as hereinafter set forth:

            6.1.1 Stock Dividends - Split-Ups.  If after the date hereof,  and
subject to the  provisions  of Section  6.4 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 thereof,  the number of shares of Common
Stock  underlying each of the Units  purchasable  hereunder shall be increased
in  proportion  to such  increase in  outstanding  shares.  In such case,  the
number of shares of Common Stock, and the exercise price  applicable  thereto,
underlying the Warrants  underlying  each of the Units  purchasable  hereunder
shall be adjusted in accordance  with the terms of the Warrants.  For example,
if the Company  declares a two-for-one  stock dividend and at the time of such
dividend  this  Purchase  Option is for the  purchase of one Unit at $6.60 per
whole Unit (and each Warrant  underlying  the Units is  exercisable  for $5.00
per share),  upon effectiveness of the dividend,  this Purchase Option will be
adjusted to allow for the  purchase  of one Unit at $6.60 per Unit,  each Unit
entitling  the holder to receive two shares of Common  Stock and two  Warrants
each to purchase two shares of Common Stock (for $2.50 per share).

                                       8
<PAGE>

            6.1.2 Aggregation  of  Shares.  If  after  the  date  hereof,  and
subject to the provisions of Section 6.4, the number of outstanding  shares of
Common Stock is decreased by a consolidation,  combination or reclassification
of shares of Common Stock or other similar event,  then, on the effective date
thereof,  the number of shares of Common  Stock  underlying  each of the Units
purchasable  hereunder  shall be decreased in  proportion  to such decrease in
outstanding  shares.  In such case, the number of shares of Common Stock,  and
the exercise price  applicable  thereto,  underlying  the Warrants  underlying
each of the Units  purchasable  hereunder shall be adjusted in accordance with
the terms of the Warrants.

            6.1.3 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 6.1.1  or 6.1.2 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 property of
the Company as an entirety or  substantially as an entirety in connection with
which the Company is dissolved,  the Holder of this Purchase Option shall have
the right  thereafter  (until the  expiration of the right of exercise of this
Purchase Option) to receive upon the exercise  hereof,  for the same aggregate
Exercise Price payable  hereunder  immediately  prior to such event,  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, by
a Holder of the  number of shares of Common  Stock of the  Company  obtainable
upon exercise of this Purchase Option and the underlying Warrants  immediately
prior to such event; and if any  reclassification  also results in a change in
shares  of  Common  Stock  covered  by  Section 6.1.1  or  6.1.2,   then  such
adjustment  shall be made pursuant to  Sections 6.1.1,  6.1.2 and this Section
6.1.3.  The  provisions  of  this  Section 6.1.3   shall  similarly  apply  to
successive  reclassifications,  reorganizations,  mergers  or  consolidations,
sales or other transfers.

            6.1.4 Changes in Form of  Purchase  Option.  This form of Purchase
Option need not be changed  because of any change  pursuant  to this  Section,
and  Purchase  Options  issued  after such change may state the same  Exercise
Price and the same  number  of Units as are  stated  in the  Purchase  Options
initially  issued pursuant to this Agreement.  The acceptance by any Holder of
the  issuance of new  Purchase  Options  reflecting  a required or  permissive
change  shall not be deemed to waive  any  rights to an  adjustment  occurring
after the Commencement Date or the computation thereof.

      6.2   [Intentionally Omitted]

      6.3   Substitute  Purchase Option.  In case of any  consolidation of the
Company  with,  or merger of the Company  with, or merger of the Company into,
another  corporation  (other  than a  consolidation  or merger  which does not
result in any  reclassification  or change of the  outstanding  Common Stock),
the  corporation  formed by such  consolidation  or merger  shall  execute and
deliver  to the  Holder a  supplemental  Purchase  Option  providing  that the
holder of each Purchase  Option then  outstanding or to be  outstanding  shall
have the right  thereafter  (until  the  stated  expiration  of such  Purchase
Option) to  receive,  upon  exercise  of such  Purchase  Option,  the kind and
amount of shares of stock and other  securities and property  receivable  upon
such  consolidation  or merger,  by a holder of the number of shares of Common
Stock of the Company for which such Purchase  Option might have been exercised
immediately  prior  to such  consolidation,  merger,  sale or  transfer.  Such
supplemental  Purchase  Option shall  provide for  adjustments  which shall be
identical  to the  adjustments  provided in Section 6. The above  provision of
this Section shall similarly apply to successive consolidations or mergers.

                                       9
<PAGE>

      6.4   Elimination  of  Fractional  Interests.  The Company  shall not be
required  to issue  certificates  representing  fractions  of shares of Common
Stock or Warrants  upon the exercise of the Purchase  Option,  nor shall it be
required to issue scrip or pay cash in lieu of any  fractional  interests,  it
being  the  intent  of the  parties  that all  fractional  interests  shall be
eliminated  by  rounding  any  fraction  up to the  nearest  whole  number  of
Warrants, shares of Common Stock or other securities, properties or rights.

7.    Reservation  and  Listing.  The Company  shall at all times  reserve and
keep  available out of its authorized  shares of Common Stock,  solely for the
purpose of issuance  upon  exercise of the  Purchase  Options or the  Warrants
underlying  the  Purchase  Option,  such  number of shares of Common  Stock or
other securities,  properties or rights as shall be issuable upon the exercise
thereof.  The  Company  covenants  and  agrees  that,  upon  exercise  of  the
Purchase  Options and payment of the Exercise  Price  therefor,  all shares of
Common Stock and other  securities  issuable upon such exercise  shall be duly
and  validly  issued,  fully  paid  and  non-assessable  and  not  subject  to
preemptive  rights of any  stockholder.  The  Company  further  covenants  and
agrees that upon exercise of the Warrants  underlying the Purchase Options and
payment of the  respective  Warrant  exercise  price  therefor,  all shares of
Common Stock and other  securities  issuable upon such exercise  shall be duly
and  validly  issued,  fully  paid  and  non-assessable  and  not  subject  to
preemptive  rights of any  stockholder.  As long as the Purchase Options shall
be outstanding,  the Company shall use its best efforts to cause all (i) Units
and shares of Common Stock  issuable  upon  exercise of the Purchase  Options,
(ii) Warrants  issuable upon exercise of the Purchase Options and (iii) shares
of Common Stock  issuable upon exercise of the Warrants  included in the Units
issuable  upon  exercise  of the  Purchase  Option  to be listed  (subject  to
official  notice of issuance) on all  securities  exchanges (or, if applicable
on the Nasdaq  National  Market,  SmallCap  Market,  OTC Bulletin Board or any
successor  trading market) on which the Units,  the Common Stock or the Public
Warrants  issued  to the  public  in  connection  herewith  may then be listed
and/or quoted.

                                       10
<PAGE>

8.    Certain Notice Requirements.

      8.1   Holder's  Right  to  Receive  Notice.   Nothing  herein  shall  be
construed  as  conferring  upon the  Holders the right to vote or consent as a
stockholder  for the election of directors or any other  matter,  or as having
any rights  whatsoever as a stockholder of the Company.  If,  however,  at any
time prior to the expiration of the Purchase  Options and their exercise,  any
of the events  described in Section 8.2 shall occur,  then,  in one or more of
said  events,  the Company  shall give  written  notice of such event at least
fifteen  days prior to the date fixed as a record  date or the date of closing
the transfer books for the determination of the stockholders  entitled to such
dividend,  distribution,  conversion or exchange of securities or subscription
rights,  or  entitled  to  vote  on such  proposed  dissolution,  liquidation,
winding up or sale.  Such notice  shall  specify  such record date or the date
of the  closing of the  transfer  books,  as the case may be.  Notwithstanding
the foregoing,  the Company shall deliver to each Holder a copy of each notice
given to the other  stockholders  of the  Company  at the same time and in the
same manner that such notice is given to the stockholders.

      8.2   Events  Requiring  Notice.  The Company  shall be required to give
the notice  described in this Section 8 in connection  with one or more of the
following  events:  (i) if the  Company  shall take a record of the holders of
its  shares of Common  Stock for the  purpose of  entitling  them to receive a
dividend or  distribution  payable  otherwise than in cash, or a cash dividend
or distribution payable otherwise than out of retained earnings,  as indicated
by the accounting  treatment of such dividend or  distribution on the books of
the Company,  or (ii) the Company shall offer to all the holders of its Common
Stock any  additional  shares of capital  stock of the  Company or  securities
convertible  into or exchangeable  for shares of capital stock of the Company,
or  any  option,   right  or  warrant  to  subscribe  therefor,   or  (iii)  a
dissolution,  liquidation  or  winding  up  of  the  Company  (other  than  in
connection with a consolidation  or merger) or a sale of all or  substantially
all of its property, assets and business shall be proposed.

      8.3   Notice of Change in Exercise  Price.  The Company shall,  promptly
after an event  requiring a change in the Exercise Price pursuant to Section 6
hereof,  send  notice  to  the  Holders  of  such  event  and  change  ("Price
Notice").  The Price  Notice shall  describe the event  causing the change and
the  method of  calculating  same and  shall be  certified  as being  true and
accurate by the Company's President and Chief Financial Officer.

      8.4   Transmittal  of  Notices.  All  notices,  requests,  consents  and
other  communications under this Purchase Option shall be in writing and shall
be deemed to have been  duly made when hand  delivered,  or mailed by  express
mail or  private  courier  service:  (i) If to the  registered  Holder  of the
Purchase  Option,  to the  address of such Holder as shown on the books of the
Company,  or (ii) if to the Company, to the following address or to such other
address as the Company may designate by notice to the Holders:

                        Chardan China Acquisition Corp. II
                        625 Broadway
                        Suite 1111
                        San Diego, California 92101
                        Attn: Dr. Richard D. Propper, Chairman

                                       11
<PAGE>

9.    Miscellaneous.

      9.1   Amendments.  The Company and EBC may from time to time  supplement
or amend this  Purchase  Option  without the approval of any of the Holders in
order to cure any ambiguity,  to correct or supplement any provision contained
herein  that  may be  defective  or  inconsistent  with any  other  provisions
herein,  or to make any other  provisions  in regard to matters  or  questions
arising  hereunder  that the Company and EBC may deem  necessary  or desirable
and that the Company and EBC deem shall not  adversely  affect the interest of
the Holders.  All other  modifications or amendments shall require the written
consent  of and be  signed  by  the  party  against  whom  enforcement  of the
modification or amendment is sought.

      9.2   Headings.  The headings  contained herein are for the sole purpose
of  convenience  of  reference,  and shall not in any way limit or affect  the
meaning or  interpretation  of any of the terms or provisions of this Purchase
Option.

10.   Entire  Agreement.   This  Purchase  Option  (together  with  the  other
agreements and documents  being  delivered  pursuant to or in connection  with
this Purchase  Option)  constitutes the entire agreement of the parties hereto
with  respect  to  the  subject  matter  hereof,   and  supersedes  all  prior
agreements and understandings of the parties,  oral and written,  with respect
to the subject matter hereof.

      10.1  Binding  Effect.  This  Purchase  Option shall inure solely to the
benefit of and shall be binding  upon,  the Holder and the  Company  and their
permitted  assignees,   respective   successors,   legal  representatives  and
assigns,  and no other  person shall have or be construed to have any legal or
equitable  right,  remedy or claim under or in respect of or by virtue of this
Purchase Option or any provisions herein contained.

      10.2  Governing Law;  Submission to  Jurisdiction.  This Purchase Option
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 Company hereby agrees that any action,  proceeding
or claim  against it arising out of, or  relating in any way to this  Purchase
Option  shall be brought  and  enforced in the courts of the State of New York
or of the United States of America 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  inconvenient  forum.  Any
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 8 hereof.  Such mailing shall be deemed personal  service and shall be
legal and binding  upon the Company in any action,  proceeding  or claim.  The
Company  and the  Holder  agree  that the  prevailing  party(ies)  in any such
action  shall be  entitled  to recover  from the other  party(ies)  all of its
reasonable  attorneys' fees and expenses relating to such action or proceeding
and/or incurred in connection with the preparation therefor.

      10.3  Waiver,  Etc.  The  failure of the Company or the Holder to at any
time  enforce  any of the  provisions  of this  Purchase  Option  shall not be
deemed or  construed to be a waiver of any such  provision,  nor to in any way
affect the validity of this  Purchase  Option or any  provision  hereof or the
right of the  Company  or any  Holder  to  thereafter  enforce  each and every
provision of this  Purchase  Option.  No waiver of any breach,  non-compliance
or  non-fulfillment  of any of the provisions of this Purchase Option shall be
effective  unless set forth in a written  instrument  executed by the party or
parties  against whom or which  enforcement  of such waiver is sought;  and no
waiver  of  any  such  breach,  non-compliance  or  non-fulfillment  shall  be
construed  or  deemed  to be a  waiver  of any  other  or  subsequent  breach,
non-compliance or non-fulfillment.

                                       12
<PAGE>

      10.4  Execution in  Counterparts.  This Purchase  Option may be executed
in one or more  counterparts,  and by the different parties hereto in separate
counterparts,  each of which  shall be  deemed to be an  original,  but all of
which taken together shall  constitute one and the same  agreement,  and shall
become effective when one or more  counterparts has been signed by each of the
parties hereto and delivered to each of the other parties hereto.

10.5  Exchange  Agreement.   As  a  condition  of  the  Holder's  receipt  and
acceptance of this Purchase  Option,  Holder agrees that, at any time prior to
the complete  exercise of this Purchase  Option by Holder,  if the Company and
EBC enter into an  agreement  ("Exchange  Agreement")  pursuant  to which they
agree that all outstanding  Purchase  Options will be exchanged for securities
or cash or a  combination  of both,  then Holder shall agree to such  exchange
and become a party to the Exchange Agreement.

      10.6  Underlying  Warrants.  At any time after exercise by the Holder of
this  Purchase  Option,  the Holder may  exchange  his  Warrants  (with a $___
exercise  price)  for  Public  Warrants  (with a $5.00  exercise  price)  upon
payment to the Company of the  difference  between the  exercise  price of his
Warrant and the exercise price of the Public Warrants.

                                       13
<PAGE>

            IN WITNESS  WHEREOF,  the Company has caused this Purchase  Option
to be signed by its duly authorized  officer as of the ____ day of __________,
2005.

                                    CHARDAN CHINA ACQUISITION CORP. II

                                    By:_________________________________
                                         Name:
                                         Title:

                                       14
<PAGE>

Form to be used to exercise Purchase Option:

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

Date:_________________, 200__

            The  undersigned  hereby elects  irrevocably  to exercise all or a
portion of the within  Purchase  Option and to purchase  ____ Units of Chardan
China  Acquisition  Corp. II and hereby makes payment of $____________ (at the
rate of  $_________  per  Unit) in  payment  of the  Exercise  Price  pursuant
thereto.  Please  issue  the  Common  Stock  and  Warrants  as to  which  this
Purchase Option is exercised in accordance with the instructions given below.

                                      or

            The undersigned  hereby elects irrevocably to convert its right to
purchase  _________  Units  purchasable  under the within  Purchase  Option by
surrender of the unexercised  portion of the attached  Purchase Option (with a
"Value"  based of  $_______  based on a "Market  Price" of  $_______).  Please
issue the securities  comprising the Units as to which this Purchase Option is
exercised in accordance with the instructions given below.

                                          ______________________________
                                          Signature

                                          ______________________________
                                          Signature Guaranteed

            INSTRUCTIONS FOR REGISTRATION OF SECURITIES

Name_____________________________________________________________
                        (Print in Block Letters)

Address__________________________________________________________

            NOTICE:  The signature to this form must  correspond with the name
as written  upon the face of the within  Purchase  Option in every  particular
without  alteration  or  enlargement  or any  change  whatsoever,  and must be
guaranteed  by a bank,  other than a savings bank, or by a trust company or by
a firm having membership on a registered national securities exchange.

                                       15
<PAGE>

Form to be used to assign Purchase Option:

                              ASSIGNMENT

            (To be executed by the  registered  Holder to effect a transfer of
the within Purchase Option):

            FOR VALUE RECEIVED,______________________________________________
does hereby sell, assign and transfer unto __________________________________
the right to purchase  __________ Units of Chardan China  Acquisition Corp. II
("Company")  evidenced by the within Purchase Option and does hereby authorize
the Company to transfer such right on the books of the Company.

Dated:___________________, 200_

                                          ______________________________
                                          Signature

                                          ______________________________
                                          Signature Guaranteed

            NOTICE:  The signature to this form must  correspond with the name
as written  upon the face of the within  Purchase  Option in every  particular
without  alteration  or  enlargement  or any  change  whatsoever,  and must be
guaranteed  by a bank,  other than a savings bank, or by a trust company or by
a firm having membership on a registered national securities exchange.

                                       16

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