Document:

Exhibit
10.4

    

    WAIVER

    

    This WAIVER (this “Waiver”) is executed
by the undersigned holders (collectively, the “Undersigned”) of
Series A Convertible Preferred Stock of Wuhan General Group (China), Inc. (the
“Company”), to
be effective as of December 13, 2010.

    

    RECITALS

    

    WHEREAS,
reference is made to that certain Series A Convertible Preferred Stock Purchase
Agreement, dated as of February 7, 2007, by and among the Company and the
Purchasers listed on Exhibit A thereto, as amended (the “Purchase
Agreement”).  Capitalized terms used but not otherwise defined
herein shall have the meanings ascribed to such terms in the Purchase
Agreement;

    

    WHEREAS,
under Section 3.20 of the Purchase Agreement, the Company covenants that Fame
Good International Limited (“Fame Good”) shall be
subject to the terms and provisions of a lock-up agreement in substantially the
form as Exhibit E thereto.  Fame Good executed a Lock-Up Agreement,
dated February 7, 2007, as amended (the “Lock-Up”), whereby it
agreed not to transfer or otherwise dispose of any of the Company’s common
stock, $0.0001 par value per share (the “Common
Stock”);

    

    WHEREAS,
the Company currently has Series A and B warrants outstanding (the “Warrants”)
representing the right to purchase an aggregate of 9,993,977 shares of the
Company’s Common Stock (the “Warrant
Stock”);

    

    WHEREAS,
in order to reduce the overhang of the Warrants, each holder of the Warrants has
been provided the option to (i) exchange all or part of such holder’s Warrant
for the issuance by the Company of 0.5 shares of the Company’s Common Stock per
share of Warrant Stock underlying the Warrant (the “Warrant Exchange”)
pursuant to that certain Warrant Exchange Agreement dated as of even date
herewith and/or (ii) sell all or part of such holder’s Warrant to Fame Good for
$0.50 per share of Warrant Stock underlying the Warrant (the “Warrant Purchase”)
pursuant to that certain Warrant Purchase Agreement dated as of even date
herewith (the “Warrant
Purchase Agreement”);

    

    WHEREAS,
Fame Good is eligible to participate in the Warrant Exchange with respect to any
Warrants that Fame Good purchases pursuant to the Warrant Purchase Agreement;
and

    

    WHEREAS,
the Warrant Exchange and the Warrant Purchase are conditioned upon the
Undersigned agreeing to this Waiver.

    

    NOW, THEREFORE, in consideration of the
foregoing and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, each of the Undersigned hereby
agrees as follows:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Disposition of
Shares.  The Undersigned waive any rights under Section 3.20 of
the Purchase Agreement and Sections 1 and 3 of the Lock-Up in connection with
the disposition of shares of the Company’s Common Stock by Fame Good subject to
the satisfaction at the time of such disposition of each of the following
conditions:

    

    (i)           the
bid price of the Company’s Common Stock equals or exceeds $4.00 per share
(subject to appropriate adjustment in the event of any stock dividend, stock
split, combination or other similar recapitalization);

    

    (ii)          Fame
Good disposes of its shares of the Company’s Common Stock pursuant to an
effective registration statement under the Securities Act of 1933, as amended
(the “Securities Act”) or an exemption from registration under the Securities
Act, for at least $4.00 per share (subject to appropriate adjustment in the
event of any stock dividend, stock split, combination or other similar
recapitalization);

    

    (iii)         the
aggregate number of shares of the Company’s Common Stock disposed of under this
Waiver does not exceed 10% of the shares of Common Stock owned by Fame Good or
its affiliates as of February 1, 2010;

    

    (iv)         Mr.
Xu Jie has not transferred, sold or otherwise disposed of 50% or more of Fame
Good’s share capital; and

    

    (v)          Fame
Good has not transferred, sold or otherwise distributed any of the Company’s
Common Stock to Fame Good’s shareholders or other affiliates.

    

    [Signature
Pages Follow]

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    In accordance with Section 7.3 of the
Purchase Agreement, the undersigned, being holders of at least seventy-five
percent (75%) of the Series A Convertible Preferred Stock outstanding, hereby
agree to this Waiver.

     

    
      
        	
                VISION
      OPPORTUNITY MASTER FUND, LTD.

              
	 
      
	
                By:

              	
                /s/ Adam Benowitz

              
	 
      	
                Name:  Adam
      Benowitz

              
	 
      	
                Title:  Director

              
	 
      
	
                VISION
      CAPITAL ADVANTAGE FUND LP

              
	 
      
	
                By:

              	
                /s/ Adam Benowitz

              
	 
      	
                Name:  Adam
      Benowitz

              
	 
      	
                Title:  Authorized
      Signatory

              

      

    

    

    
      [Signature
Page to Waiver]

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                BLUE
      RIDGE INVESTMENTS, L.L.C.

              
	 
      
	
                By:

              	
                /s/ Chin Chin Teoh

              
	 
      	
                Name:  Chin
      Chin Teoh

              
	 
      	
                Title:  Authorized
      Signatory

              

      

    

    

    
      [Signature
Page to Waiver]

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  OLD
      LANE CAYMAN MASTER FUND, LP

                
	 
      
	
                  By:

                	
                  /s/ Mukesh Patel

                
	 
      	
                  Name:  Mukesh
      Patel

                
	 
      	
                  Title:  Managing
      Director

                
	 
      
	
                  OLD
      LANE US MASTER FUND, LP

                
	 
      
	
                  By: 

                	
                  /s/ Mukesh Patel

                
	 
      	
                  Name:  Mukesh
      Patel

                
	 
      	
                  Title:  Managing
      Director

                
	 
      
	
                  OLD
      LANE HMA MASTER FUND, LP

                
	 
      
	
                  By:

                	
                  /s/ Mukesh Patel

                
	 
      	
                  Name:  Mukesh
      Patel

                
	 
      	
                  Title:  Managing
      Director

                

        

      

    

    

    
      [Signature
Page to Waiver]

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                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

              
	 
      
	
                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

              

      

    

    

    [Signature
Page to Waiver]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                TCW
      AMERICAS DEVELOPMENT

                ASSOCIATION,
      LP

              
	 
      
	
                By:

              	
                /s/ Penelope D. Foley

              
	 
      	
                Name:  Penelope
      D. Foley

              
	 
      	
                Title:  Managing
      Director

              

      

    

    

    [Signature
Page to Waiver]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                LIGHTHOUSE
      CONSULTING LTD.

              
	 
      
	
                By:

              	
                /s/ Bai Ye Feng

              
	 
      	
                Name:  Bai
      Ye Feng

              
	 
      	
                Title:  Director

              

      

    

    

    [Signature
Page to Waiver]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”);

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (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:

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    
      	
              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]

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    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]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        
          	 
      	
                  FAME
      GOOD INTERNATIONAL LIMITED

                
	 
      	 
      
	 
      	
                  By:

                	
                       /s/ Xu
      Jie

                
	 
      	 
      	
                  Name:  Xu
      Jie

                
	 
      	 
      	
                  Title:  Director

                

        

      

    

    

    [Signature
Page to Stockholders Agreement]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 
      	
                   /s/ Xu
      Jie

            
	 
      	
              Xu
      Jie

            

    

    

    [Signature
Page to Stockholders Agreement]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	 
      	
                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]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	 
      	
                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]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	 
      	
                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]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	 
      	
                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]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]