Exhibit 10.5

STOCKHOLDERS AGREEMENT

THIS STOCKHOLDERS AGREEMENT (this “Agreement”) is made and entered into as of
December 13, 2010, by and among Wuhan General Group (China), Inc., a Nevada
corporation (the “Company”), Fame Good International Limited, a British Virgin
Islands company (“Fame Good”), Mr. Xu Jie, Fame Good’s controlling stockholder
(“Xu”), and the undersigned holders of the Company’s Series A Convertible
Preferred Stock (collectively, the “Undersigned Stockholders”).

WITNESSETH
 
WHEREAS, as of even date herewith, the holders of at least seventy-five percent
(75%) of the Company’s Series A Convertible Preferred Stock, par value $0.0001
per share (the “Preferred Stock”) have executed a Waiver (the “Waiver”) of the
Lock-Up Agreement, dated February 7, 2007, as amended, between the Company and
Fame Good; and
 
WHEREAS, the Undersigned Stockholders have conditioned execution of the Waiver
upon Fame Good entering into this Agreement.
 
NOW, THEREFORE, in consideration of good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, each of the undersigned hereby
agrees as follows:
 
1.           Tag-Along Rights.

(a)           So long as an Undersigned Stockholder beneficially owns any of the
shares of the Company’s Preferred Stock  or shares of the Company’s common
stock, par value $0.0001 per share (the “Common Stock”), if Fame Good proposes
to transfer an aggregate of 10% or more of the shares of Common Stock owned by
Fame Good or its affiliates as of February 1, 2010 to any purchaser or
affiliated group of purchasers, in one or more transactions, other than an
affiliate of Fame Good (the “Proposed Purchaser”), Fame Good shall deliver to
the Undersigned Stockholders a notice (the “Tag Notice”) of such proposed
transfer, which Tag Notice shall include (i) a copy of the Proposed Purchaser’s
offer in writing stating its terms and conditions, including the number and
price per share of the Common Stock to be purchased, the method of payment and
the proposed closing date (which shall not be sooner than 30 days after the Tag
Notice has been delivered) and (ii) evidence that the Proposed Purchaser has the
legal and economic capacity to perform under such offer.
 
(b)           Upon delivery of the Tag Notice, each Undersigned Stockholder may,
by written notice to Fame Good at any time during a period of 30 days (the “Tag
Exercise Period”) from the date of delivery of the Tag Notice, require the
Proposed Purchaser (or Fame Good) to purchase from it a number of shares of
Common Stock up to the amount calculated by multiplying (a) the number of shares
of Common Stock proposed to be acquired by the Proposed Purchaser by (b) the
quotient derived by dividing (i) the number of shares of Common Stock or
securities convertible into Common Stock (excluding options and warrants)
(“Convertible Securities”) owned by such Undersigned Stockholder by (ii) the
aggregate number of shares of Common Stock or Convertible Securities owned by
Fame Good and its affiliates and all Undersigned Stockholders participating in
such transaction (the “Tag-Along Shares”);
 
 
 

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(c)           If none of the Undersigned Stockholders has provided Fame Good
with notice of their election to exercise the right set forth in Section 1(b)
within the Tag Exercise Period, the Undersigned Stockholders shall be deemed to
have elected not to exercise such right, and Fame Good may transfer the
applicable shares to the Proposed Purchaser free of the Undersigned
Stockholders’ tag-along right; provided, however, that, (i) such transfer must
be on the terms and conditions described in the Tag Notice, and (ii) such
transfer must be consummated within 60 days after the end of the Tag Exercise
Period, and (iii) as a condition precedent to such transfer, such Proposed
Purchaser must become a party to, and agree in writing to be bound by, all terms
and conditions of this Agreement;

(d)           If one or more of the Undersigned Stockholders does provide Fame
Good with notice of its election to exercise the right set forth in Section 1(b)
within the Tag Exercise Period, Fame Good (or the Proposed Purchaser) shall
purchase the Tag-Along Shares at the same price per share of Common Stock and
upon substantially the same terms and conditions as such transfer described in
the Tag Notice; provided, however, in the event a transfer is not consummated
with the Proposed Purchaser, Fame Good shall have no obligation to purchase the
Tag-Along Shares from the Undersigned Stockholders.  Each of the Undersigned
Stockholders agrees to pay its pro-rata share (based on the shares included by
each Undersigned Stockholder in such transaction) of the reasonable and
documented transaction costs to be paid by sellers if such Undersigned
Stockholder successfully exercises its right set forth in Section 1(b); and

(e)           During the term of this Agreement, Xu agrees not to transfer, sell
or otherwise dispose of 50% or more of Fame Good’s share capital to a Proposed
Purchaser.
 
2.           Termination. Unless earlier terminated by the written agreement of
the Company, Fame Good, Xu and each of the Undersigned Stockholders, this
Agreement shall terminate on February 5, 2011.
 
3.           Entire Agreement; Amendment. This Agreement and the Waiver contain
the entire understanding and agreement of the parties with respect to the
matters covered hereby and, except as specifically set forth herein, none of the
parties hereto makes any representations, warranties, covenants or undertakings
with respect to such matters; all prior understandings and agreements with
respect to said subject matter are merged herein. No provision of this Agreement
may be waived or amended other than by a written instrument signed by the
Company, Fame Good, Xu and each of the Undersigned Stockholders, and no
provision hereof may be waived other than by a written instrument signed by the
party against whom enforcement of any such amendment or waiver is sought.
 
4.           Notices. Any notice, demand, request, waiver or other communication
required or permitted to be given hereunder shall be in writing and shall be
effective on the third business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual
receipt of such mailing, whichever shall first occur. The addresses for such
communications shall be:
 
 
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If to the Company, Fame Good or Xu:
Wuhan General Group (China), Inc.
Canglongdao Science Park of Wuhan
East Lake Hi-Tech Development Zone
Wuhan, Hubei 430200
People’s Republic of China
Attention: Xu Jie
   
with a copy to (which shall not constitute notice):
Troutman Sanders LLP
The Chrysler Building
405 Lexington Avenue
New York, New York 10174
Attention: Henry I. Rothman, Esq.

If to any Undersigned Stockholder:
At the address of such Undersigned Stockholder set forth on such Undersigned
Stockholder’s signature page hereto.

 
Any party hereto may from time to time change its address for notices by giving
at least ten (10) days written notice of such changed address to the other
parties hereto.
 
5.           Headings.  The headings and other captions in this Agreement are
for convenience and reference only and shall not be used in interpreting,
construing or enforcing any provision of this Agreement.
 
6.           Governing Law.  This Agreement shall be governed by and construed
in accordance with the internal laws of the State of New York, without giving
effect to any of the conflicts of law principles which would result in the
application of the substantive law of another jurisdiction.  This Agreement
shall not be interpreted or construed with any presumption against the party
causing this Agreement to be drafted.
 
7.           Counterparts.  This Agreement may be executed in any number of
counterparts (including by facsimile) and by different parties hereto in
separate counterparts, with the same effect as if all parties had signed the
same document.  All such counterparts shall be deemed an original, shall be
construed together and shall constitute one and the same instrument.
 
[Signature Pages Follow]

 
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IN WITNESS WHEREOF, the undersigned have caused this Stockholders Agreement to
be executed, all as of the day and year first written above.

 
WUHAN GENERAL GROUP (CHINA), INC.
     
By:
     /s/ Philip Lo
   
Name: Philip Lo
   
Title: Chief Financial Officer

[Signature Page to Stockholders Agreement]

 
 

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FAME GOOD INTERNATIONAL LIMITED
     
By:
     /s/ Xu Jie
   
Name:  Xu Jie
   
Title:  Director

[Signature Page to Stockholders Agreement]

 
 

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     /s/ Xu Jie
 
Xu Jie

[Signature Page to Stockholders Agreement]

 
 

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VISION OPPORTUNITY MASTER FUND, LTD.
       
By:
     /s/ Adam Benowitz
   
Name:  Adam Benowitz
   
Title:  Director
       
Address:
     
20 W. 55th Street, 5th Floor
 
New York, NY 10019
       
VISION CAPITAL ADVANTAGE FUND LP
       
By:
     /s/ Adam Benowitz
   
Name:  Adam Benowitz
   
Title:  Authorized Signatory
       
Address:
     
20 W. 55th Street, 5th Floor
 
New York, NY 10019

[Signature Page to Stockholders Agreement]

 
 

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QVT FUND LP, by its general partner,
 
QVT Associates GP LLC
       
By:
     /s/ Tracy Fu
   
Name:  Tracy Fu
   
Title:  Managing Member
       
By:
     /s/ Yi Cen
   
Name:  Yi Cen
   
Title:  Authorized Signatory
       
Address:  c/o QVT Financial LP
 
                 1177 Avenue of the Americas, 9th Floor
 
                 New York, NY 10036
       
QUINTESSENCE FUND L.P., by its general partner,
QVT Associates GP LLC
       
By:
     /s/ Tracy Fu
   
Name:  Tracy Fu
   
Title:  Managing Member
       
By:
     /s/ Yi Cen
   
Name:  Yi Cen
   
Title:  Authorized Signatory
       
Address:  c/o QVT Financial LP
 
                 1177 Avenue of the Americas, 9th Floor
 
                 New York, NY 10036

[Signature Page to Stockholders Agreement]

 
 

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TCW AMERICAS DEVELOPMENT ASSOCIATION, L.P.
       
By:
     /s/ Penelope D. Foley
   
Name:  Penelope D. Foley
   
Title:  Managing Director
       
Address:  1251 Avenue of the Americas, Suite 4700
 
                 New York, NY 10020

[Signature Page to Stockholders Agreement]

 
 

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LIGHTHOUSE CONSULTING LIMITED
       
By:
     /s/ Bai Ye Feng
   
Name:  Bai Ye Feng
   
Title:  Director
       
Address:  Room 1001, Tung Chai Bldg.
 
                 86 Wellington Street
 
                 Central, Hong Kong

[Signature Page to Stockholders Agreement]

 
 

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