Document:

Unassociated Document

    AMENDMENT
      TO

    

    UNIT
      PURCHASE OPTION

    

    This
      AMENDMENT TO UNIT PURCHASE OPTION (this “Amendment”), dated August 24, 2006, is
      made by and between Chardan North China Acquisition Corporation (the “Company”)
      and the holder designated on the signature page hereof (“Holder”), to that
      certain Unit Purchase Option referred to below.

    

    WHEREAS,
      the Company issued that certain Unit Purchase Option, dated August 10, 2005
      (the
“Unit Purchase Option”) together with other similar unit purchase options in
      connection with the company’s initial public offering and Holder is the owner of
      the Unit Purchase Option; and

    

    WHEREAS,
      the parties hereto have agreed that the Unit Purchase Option be amended as
      set
      forth herein to clarify the understanding between the parties with respect
      to
      the terms of the Unit Purchase Option effective as of the date of its
      issuance.

    

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

    

    1. Amendment
      to the Unit Purchase Option.
      To
      reflect the original intention of the parties, Section 5.3 of the Unit Purchase
      Option is and shall be amended and restated in its entirety as
      follows:

     

    “5.3 No
      Net-Cash Settlement or Damages Upon Failure of Registration.
      In no
      event shall the registered Holder of this Purchase Option be entitled to (i)
      net-cash settlement of this Purchase Option, regardless of whether any or all
      of
      the Registrable Securities have been registered by the Company pursuant to
      an
      effective registration statement, or (ii) receive any damages if any or all
      of
      the Registrable Securities have not been registered by the Company pursuant
      to
      an effective registration statement, subject to the requirement that the Company
      use its best efforts to have a registration statement or post-effective
      amendment filed pursuant to Section 5.1 declared effective as soon as possible
      after receiving the Initial Demand Notice.”

    

    2. Reference
      to and Effect on the Unit Purchase Option.
      Upon
      the due execution and delivery of this Amendment by the parties hereto, on
      and
      after the date hereof each reference in the Unit Purchase Option to this
“Purchase Option”, “hereunder”, “hereof”, “herein” or words of like import
      referring to the Unit Purchase Option shall mean and be a reference to the
      Unit
      Purchase Option, as amended hereby. Except as specifically amended above, the
      Unit Purchase Option shall remain in full force and effect and is hereby
      ratified and confirmed.

     

    3. Execution
      in Counterparts.
      This
      Amendment 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.

     

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have executed this AMENDMENT TO UNIT PURCHASE
      OPTION as of the date first set forth above.

     

    
      	 	 	 
	 	Chardan
              North
              China Acquisition Corporation
	 
 	 
 	 
 
	 	By:  	/s/ Kerry
              Propper  
	 	
              
Name: Kerry
              Propper
	 	Title: Chief
              Financial Officer

    

    
      	 	 	 
	 	EarlyBirdCapital,
              Inc.  
	 	(Holder) 
	 
 	 
 	 
 
	 	By:  	/s/ David
              M.
              Nussbaum 
	 	
              
Name: David
              M. Nussbaum 
	 	
              (please
                print name)

            
	 	 
	 	 
	 	Title: Chairman
	 	
               (if
                signing in a representative capacity)Unassociated Document

    WARRANT
      CLARIFICATION AGREEMENT

    

    This
      Warrant Clarification Agreement (this “Agreement”), dated August 24, 2006, is to
      the Warrant Agreement, dated as of August 2, 2005 (the “Warrant Agreement”), by
      and between Chardan North China Acquisition Corporation, a Delaware corporation
      (“Company”), and Continental Stock Transfer & Trust Company, a New York
      corporation (“Warrant Agent”).

    

    WHEREAS,
      Section
      3.3.2 of the Warrant Agreement provides that Company
      shall not be obligated to deliver any securities pursuant to the exercise of
      a
      warrant unless a registration statement under the Securities Act of 1933, as
      amended (“Securities Act”), with respect to the common stock is effective.

    

    WHEREAS,
      in
      furtherance of the foregoing, the Company’s final prospectus, dated August 2,
      2005, indicated (i) that no warrant would be exercisable unless at the time
      of
      exercise a prospectus relating to the common stock issuable upon exercise of
      the
      warrant is current and the common stock has been registered under the Securities
      Act or qualified or deemed to be exempt under the securities laws of the state
      of residence of the holder of the warrant and (ii) that the warrant may be
      deprived of any value and the market for the warrant may be limited if the
      prospectus relating to the common stock issuable upon the exercise of the
      warrant is not current or if the common stock is not qualified or exempt from
      qualification in the jurisdictions in which the holder of the warrant
      resides.

    

    WHEREAS,
      as a
      result of certain questions that have arisen regarding the accounting treatment
      applicable to the warrants, the parties hereto deem it necessary and desirable
      to amend the Warrant Agreement to clarify that the registered holders do not
      have the right to receive a net cash settlement in the event the Company does
      not maintain a current prospectus relating to the common stock issuable upon
      exercise of the warrants at the time such warrants are exercisable.

    

    NOW,
      THEREFORE,
      in
      consideration of the mutual agreements contained herein and other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, and intending to be legally bound hereby, the parties hereto
      agree
      to amend the Warrant Agreement as set forth herein.

    

    1.
       Warrant
      Agreement.
      The
      Warrant Agreement is hereby amended by adding the following sentence as the
      penultimate sentence of Section 3.3.2:

    

    “Furthermore,
      in
      no
      event will the Company be obligated to pay such registered holder any cash
      or
      other consideration or otherwise “net cash settle” the Warrant.”

    

    2. Miscellaneous.

    

    (a) Governing
      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 of the Warrant Agreement. Such mailing shall be deemed personal service
      and
      shall be legal and binding upon the Company in any action, proceeding or
      claim.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b) Binding
      Effect.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and to their respective heirs, legal representatives, successors and
      assigns.

    

    (c) Entire
      Agreement.
      This
      Agreement sets forth the entire agreement and understanding between the parties
      as to the subject matter thereof and merges and supersedes all prior
      discussions, agreements and understandings of any and every nature among them.
      Except as set forth in this Agreement, provisions of the Warrant Agreement
      which
      are not inconsistent with this Agreement shall remain in full force and effect.
      This Agreement may be executed in counterparts.

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Warrant Clarification
      Agreement as of the date first written above.

    

    
      	 	 	 
	 	CHARDAN
              NORTH
              CHINA ACQUISTION CORPORATION
	 
 	 
 	 
 
	 	By:  	/s/ Kerry
              Propper
	 	
              
Chief
              Financial Officer
	 	 

      	 	 	 
	 	CONTINENTAL
              STOCK
              TRANSFER & TRUST COMPANY
	 
 	 
 	 
 
	 	By:  	/s/ Steven
              G.
              Nelson
	 	
              
Steven
              G. Nelson, President

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