EXHIBIT 10.16
_______, 2008
China Fundamental Acquisition Corporation
Room 2301, World-Wide House
19 Des Voeux Road
Central, Hong Kong
Chardan Capital Markets, LLC
17 State Street, Suite 1600
New York, New York 10019
Re: Initial Public Offering
Gentlemen:
The undersigned, a shareholder and purchaser of warrants exercisable for Ordinary Shares of China
Fundamental Acquisition Corporation (the “Company”), in consideration of Chardan Capital Markets, LLC
(“Chardan”) entering into a letter of intent, dated December 20, 2007 (“Letter of Intent”), to underwrite an initial
public offering (“IPO”) of the securities of the Company and embarking on, undertaking and continuing to
participate in the IPO process, hereby agrees as follows (certain capitalized terms used herein are defined in
paragraph XIV hereof):
I. (1) Except with respect to any of the IPO Shares acquired by the undersigned in connection with or
following the IPO, the undersigned hereby (a) waives any and all right, title, interest or claim of any kind (a
“Claim”) in or to all funds in the Trust Account and any remaining net assets of the Company upon liquidation of
the Trust Account and dissolution of the Company, (b) 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 (c) agrees that the
undersigned will not seek recourse against the Trust Account for any reason whatsoever.
II. To the extent that the Underwriters do not exercise their over-allotment option to purchase an additional
562,500Units of the Company, the undersigned agrees that he shall return to the Company for cancellation, at no
cost, the number of Insider Shares he holds, determined by multiplying 2,935 shares by a fraction, (i) the
numerator of which is 562,500minus the number of Ordinary Shares purchased by the Underwriters upon the
exercise of their over-allotment option, and (ii) the denominator of which is 562,500.
II