|   | 1. | Party A shall acquire from Party B thirteen VLOV stores (collectively the “VLOV Stores”) in Fujian Province by June 30, 2011 (the “Closing Date”) for a purchase price of RMB 44.1 million (the “Purchase Price”), RMB 17.1 million of which shall be paid upon the execution of this Agreement and the remaining RMB 27 million shall be paid by the Closing Date. |
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|   | 2. | Party A shall acquire all goods and properties in the VLOV Stores as of the Closing Date for no additional costs to the Purchase Price. |
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|   | 3. | Party B shall deliver to Party A the administration and operations of the VLOV Stores in Fujian Province as of the Closing Date. |
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|   | 4. | Party B shall undertake all debts and liabilities of the VLOV Stores as of the Closing Date. |
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|   | 5. | Party A shall succeed the contracts that have been entered by the VLOV Stores. |
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|   | 1. | Party A shall be free from any promise made by Party B to a third party or any obligations under a business relationship established between Party B and a third party. |
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|   | 2. | Party B shall pay all costs and expenses in connection with the operations of the VLOV Stores as of the Closing Date. |
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|   | 1. | This Agreement shall terminate if any obligation thereunder is rendered impossible to perform by a force majeure event. |
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|   | 2. | If Party A breaches any terms or conditions under this Agreement, Party B shall have the right to terminate this Agreement and consult the payment of damage with Party A. |
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|   | 3. | Upon termination of this Agreement, Party B shall complete all outstanding payments for VLOV products and shall resign as Party A’s distributor. After resignation as Party A’s distributor, Party B shall stop using Party A’s logos and return all brochure, advertising materials, invoices and official stamps to Party A. Party B shall also refund any payments of the Purchase Price made prior to the termination of the Agreement. |
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|   | 1. | The parties shall comply with the terms and conditions under this Agreement upon execution. Any party shall not terminate this Agreement without a justifiable cause. If any party breaches the Agreement, the non-breaching party shall have the right to demand compensation of damage. |
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|   | 2. | Any dispute arising from the performance of this Agreement shall be firstly resolved through consultation between the parties. If no resolution can be reached through consultation, the dispute may be submitted to a court at Party A’s location (Xiamen). |
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