Document:

WARRANT AGREEMENT

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

      WHEREAS,   the  Company  is  engaged  in  a  public  offering   ("Public
Offering") of Units  ("Units")  and, in connection  therewith,  has determined
to issue and deliver up to (i) 9,200,000  Warrants ("Public  Warrants") to the
public investors, and (ii) 600,000 Warrants to EarlyBirdCapital,  Inc. ("EBC")
or its designees  ("Representative's  Warrants" and,  together with the Public
Warrants,  the "Warrants"),  each of such Public Warrants evidencing the right
of the holder  thereof to purchase one share of the  Company's  common  stock,
par value $.0001 per share ("Common Stock"),  for $5.00, subject to adjustment
as described herein; and

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

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

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

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

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

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

2.    Warrants.

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

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

      2.3.  Registration.

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

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

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

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

3.    Terms and Exercise of Warrants

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

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

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      3.3.  Exercise of Warrants.

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

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

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

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

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            3.3.5.      Intentionally Omitted.

4.    Adjustments.

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

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

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

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

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

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

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

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5.    Transfer and Exchange of Warrants.

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

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

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

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

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

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6.    Redemption.

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

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

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

6.4   Exclusion of Certain Warrants.

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

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

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

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

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

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

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

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8.    Concerning the Warrant Agent and Other Matters.

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

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

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

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

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<PAGE>

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

      8.3.  Fees and Expenses of Warrant Agent.

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

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

      8.4.  Liability of Warrant Agent.

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

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

                                       11
<PAGE>

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

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

9.    Miscellaneous Provisions.

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

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

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

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

                                       12
<PAGE>

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

with a copy in each case to:

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

and

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

and

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

      9.3.  Applicable law. The validity,  interpretation,  and performance of
this  Agreement  and of the Warrants  shall be governed in all respects by the
laws of the State of New York,  without  giving  effect  to  conflicts  of law
principles  that would result in the  application of the  substantive  laws of
another  jurisdiction.  The Company hereby agrees that any action,  proceeding
or claim  against it arising out of or  relating in any way to this  Agreement
shall be brought  and  enforced  in the courts of the State of New York or the
United  States  District  Court for the  Southern  District  of New York,  and
irrevocably  submits  to  such  jurisdiction,   which  jurisdiction  shall  be
exclusive.   The  Company  hereby  waives  any  objection  to  such  exclusive
jurisdiction and that such courts  represent an inconvenience  forum. Any such
process  or  summons  to  be  served   upon  the  Company  may  be  served  by
transmitting  a copy thereof by registered or certified  mail,  return receipt
requested,  postage  prepaid,  addressed  to it at the  address  set  forth in
Section 9.2 hereof.  Such mailing shall be deemed  personal  service and shall
be legal and binding upon the Company in any action, proceeding or claim.

                                       13
<PAGE>

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

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

      9.6.  Counterparts.  This  Agreement  may be  executed  in any number of
counterparts  and each of such  counterparts  shall for all purposes be deemed
to be an original,  and all such  counterparts  shall together  constitute but
one and the same instrument.

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

                                       14
<PAGE>

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

Attest:                                   CHARDAN CHINA ACQUISITION CORP. II

_______________                           By: _________________________________
                                               Name:   Dr. Richard D. Propper
                                               Title:  Chairman

Attest:                                   CONTINENTAL STOCK TRANSFER
                                          & TRUST COMPANY

______________                            By: _________________________________
                                               Name:   Steven Nelson
                                               Title:  Chairman

                                       15EXHIBIT 10.1

                                                     April 30, 2005

Chardan China Acquisition Corp. II
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. II ("Company"),  in consideration of  EarlyBirdCapital,  Inc.
("EBC")  entering into a letter of intent  ("Letter of Intent") to underwrite an
initial public  offering of the securities of the Company  ("IPO") and embarking
on the IPO process,  hereby agrees as follows  (certain  capitalized  terms used
herein are defined in paragraph 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. II
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. II
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  Chairman  of the Board 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 Chairman of the Board of the Company.
<PAGE>

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

            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.

            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.

                                        Dr. Richard D. Propper
                                        ----------------------------------------
                                        Print Name of Insider

                                        /s/ Dr. Richard D. Propper
                                        ----------------------------------------
                                        Signature
<PAGE>

EXHIBIT A

      DR.  RICHARD D.  PROPPER has been our  chairman of the board of  directors
since our inception and has been the chief financial officer and a member of the
board of directors of Chardan China III since its inception.  He has also served
as the  chairman of the board of directors of Chardan  China  Acquisition  Corp.
since its inception in December 2003. In August 2003, he formed Chardan Capital,
LLC, a venture capital management and financial strategic  consulting firm based
in Southern  California,  and has been one of its managers  since its formation.
During this time, Dr. Propper has been focused  principally on building business
relationships  between Chinese and U.S. companies.  From June 2002 to July 2003,
Dr.  Propper  was chief  executive  officer  and  chairman  of the board of Mera
Pharmaceuticals,  Inc., a public  company that  produces  products  from aquatic
microorganisms.  In 1984, he founded Montgomery Medical Ventures Funds, an early
stage venture  capital  firm,  and was the managing  general  partner until July
1993.  He then pursued  private  investment  activities  from July 1993 until he
formed Chardan  Capital in August 2003. Dr. Propper  received a B.S. from McGill
University and an M.D. from Stanford University.  He also spent ten years on the
faculty  of  Harvard  medical  school  as a  research  fellow  and an  assistant
professor in pediatrics.  Dr. Propper is the father of Kerry Propper,  our chief
financial officer and secretary.

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