Document:

Exhibit 4.5

     

    NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS.  THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN SECURED BY SUCH SECURITIES.

    

    COMMON
STOCK PURCHASE WARRANT

     

    VLOV,
INC.

     

    Warrant
No.: IR-1

     

    
      	
              Warrant
      Shares: 300,000

            	
              Initial
      Exercise Date: November 5, 2010

            

    

     

    THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies
that, for value received, AMERICAN CAPITAL VENUTRES, INC.
(the “Holder”) is entitled,
upon the terms and subject to the limitations on exercise and the conditions
hereinafter set forth, at any time on or after November 5, 2010 (the “Initial Exercise
Date”) and on or prior to the close of business on the four-year
anniversary of the Initial Exercise Date (the “Termination Date”)
but not thereafter, to subscribe for and purchase from VLOV, Inc., a Nevada
corporation (the “Company”), up to
300,000 shares (the
“Warrant
Shares”) of Common Stock.  The purchase price of one share of
Common Stock under this Warrant shall be equal to the Exercise Price, as defined
in Section 1(b).

    
      
         

      

      
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    Section
1.      
      Exercise.

     

    a)           Exercise of
Warrant.  Exercise of the purchase rights represented by this
Warrant may be made, in whole or in part, at any time or times on or after the
Initial Exercise Date and on or before the Termination Date by delivery to the
Company (or such other office or agency of the Company as it may designate by
notice in writing to the registered Holder at the address of the Holder
appearing on the books of the Company) of a duly executed facsimile copy of the
Notice of Exercise Form annexed hereto (the "Notice of Exercise");
and, within 5 Trading Days of the date said Notice of Exercise is delivered to
the Company, the Company shall have received payment of the aggregate Exercise
Price of the shares thereby purchased by wire transfer or cashier’s check drawn
on a United States bank.  Notwithstanding anything herein to the
contrary, the Holder shall not be required to physically surrender this Warrant
to the Company until the Holder has purchased all of the Warrant Shares
available hereunder and the Warrant has been exercised in full, in which case,
the Holder shall surrender this Warrant to the Company for cancellation within 5
Trading Days of the date the final Notice of Exercise is delivered to the
Company.  Partial exercises of this Warrant resulting in purchases of
a portion of the total number of Warrant Shares available hereunder shall have
the effect of lowering the outstanding number of Warrant Shares purchasable
hereunder in an amount equal to the applicable number of Warrant Shares
purchased.  The Holder and the Company shall maintain records showing
the number of Warrant Shares purchased and the date of such
purchases.  The Company shall deliver any objection to any Notice of
Exercise within 3 Business Day of receipt of such notice.  In the
event of any dispute or discrepancy, the records of the Holder shall be
controlling and determinative in the absence of manifest error. The Holder and any assignee, by
acceptance of this Warrant, acknowledge and agree that, by reason of the
provisions of this paragraph, following the purchase of a portion of the Warrant
Shares hereunder, the number of Warrant Shares available for purchase hereunder
at any given time may be less than the amount stated on the face
hereof.

     

    b)           Exercise
Price.  The exercise price per share of the Common Stock under
this Warrant shall be $3.43, subject to adjustment hereunder (the “Exercise
Price”).

     

    c)           Mechanics of
Exercise.

     

    i.           Delivery of Certificates
Upon Exercise.  Certificates for shares purchased hereunder
shall be transmitted by the Transfer Agent to the Holder by crediting the
account of the Holder’s prime broker with the Depository Trust Company through
its Deposit Withdrawal Agent Commission (“DWAC”) system if the
Company is then a participant in such system and either (A) there is an
effective Registration Statement permitting the resale of the Warrant Shares by
the Holder or (B) the shares are eligible for resale without volume or
manner-of-sale limitations pursuant to Rule 144, and otherwise by physical
delivery to the address specified by the Holder in the Notice of Exercise within
five (5) Trading Days from the delivery to the Company of the Notice of
Exercise, surrender of this Warrant (if required) and payment of the aggregate
Exercise Price as set forth above (the “Warrant Share Delivery
Date”).  This Warrant shall be deemed to have been exercised on
the date the Exercise Price is received by the Company.  The Warrant
Shares shall be deemed to have been issued, and Holder or any other person so
designated to be named therein shall be deemed to have become a holder of record
of such shares for all purposes, as of the date the Warrant has been exercised
by payment to the Company of the Exercise Price and all taxes required to be
paid by the Holder, if any, pursuant to Section 1(c)(vi) prior to the issuance
of such shares, have been paid.

     

    ii.           Cashless Exercise.
The Holder also may exercise this Warrant by, in lieu of making the cash payment
otherwise contemplated to be made to the Company upon such exercise in payment
of the aggregate Exercise Price, electing instead to receive upon such exercise
a reduced number of Warrant Shares (the “Net Number”)
determined according to the following formula (a “Cashless
Exercise”):

     

    Net Number = (A x B) - (A x
C)

                       
   B

    
      
         

      

      
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    For
purposes of the foregoing formula:

    

    A= the
total number of shares with respect to which this Warrant is then being
exercised in a Cashless Exercise.

    

    B= the
Market Price on the Trading Day immediately preceding the date of the Exercise
Notice.

    

    C= the
Exercise Price then in effect for the applicable Warrant Shares at the time of
such exercise.

    

    There
cannot be a Cashless Exercise unless “B” exceeds “C”.

    

    ii.           Delivery of New Warrants
Upon Exercise.  If this Warrant shall have been exercised in
part, the Company shall, at the request of a Holder and upon surrender of this
Warrant certificate, at the time of delivery of the certificate or certificates
representing Warrant Shares, deliver to Holder a new Warrant evidencing the
rights of Holder to purchase the unpurchased Warrant Shares called for by this
Warrant, which new Warrant shall in all other respects be identical with this
Warrant.

     

    iii.           Rescission
Rights.  If the Company fails to cause the Transfer Agent to
transmit to the Holder a certificate or the certificates representing the
Warrant Shares pursuant to Section 1(c)(i) by the Warrant Share Delivery Date,
then, the Holder will have the right to rescind such exercise.

     

    iv.           No Fractional Shares or
Scrip.  No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant.  As to any
fraction of a share which Holder would otherwise be entitled to purchase upon
such exercise, the Company shall, at its election, either pay a cash adjustment
in respect of such final fraction in an amount equal to such fraction multiplied
by the Exercise Price or round up to the next whole share.

     

    v.           Charges, Taxes and
Expenses.  Issuance of certificates for Warrant Shares shall be
made without charge to the Holder for any issue or transfer tax or other
incidental expense in respect of the issuance of such certificate, all of which
taxes and expenses shall be paid by the Company, and such certificates shall be
issued in the name of the Holder or in such name or names as may be directed by
the Holder; provided, however, that in the
event certificates for Warrant Shares are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be
accompanied by the Assignment Form attached hereto duly executed by the Holder
and the Company may require, as a condition thereto, the payment of a sum
sufficient to reimburse it for any transfer tax incidental thereto.

     

    vi.           Closing of
Books.  The Company will not close its stockholder books or
records in any manner which prevents the timely exercise of this Warrant,
pursuant to the terms hereof.

     

    
      
         

      

      
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    d)           Call Provision. If,
after the Effective Date, (i) the VWAP (as such term is defined in the
Certificate of Designation of the Company) for each of 20 consecutive Trading
Days (the “Measurement
Period,” which 20 consecutive Trading Day period shall not have commenced
until after the Effective Date) exceeds 200% of the then-effective Exercise
Price, (ii) a Registration Statement is effective for the resale of all of the
Warrant Shares or the Warrant Shares are eligible for resale without volume or
manner-of-sale limitations pursuant to Rule 144, and (iii) the Holder is not in
possession of any information that constitutes, or might constitute, material
non-public information which was provided by the Company, then the Company may,
within 1 Trading Day of the end of such Measurement Period, call for
cancellation of all or any portion of this Warrant for which a Notice of
Exercise has not yet been delivered (such right, a “Call”) for
consideration equal to the Exercise Price per Warrant Share.  To
exercise this right, the Company must deliver to the Holder an irrevocable
written notice (a “Call Notice”),
indicating therein the portion of unexercised portion of this Warrant to which
such notice applies.  If the conditions set forth below for such Call
are satisfied from the period from the date of the Call Notice through and
including the Call Date (as defined below), then any portion of this Warrant
subject to such Call Notice for which a Notice of Exercise shall not have been
received by the Call Date will be cancelled at 6:30 p.m. (New York City time) on
the tenth Trading Day after the date the Call Notice is received by the Holder
(such date and time, the “Call Date”).  Any unexercised portion of
this Warrant to which the Call Notice does not pertain will be unaffected by
such Call Notice.  In furtherance thereof, the Company covenants and
agrees that it will honor all Notices of Exercise with respect to Warrant Shares
subject to a Call Notice that are tendered through 6:30 p.m. (New York City
time) on the Call Date.  The parties agree that any Notice of Exercise
delivered following a Call Notice which calls less than all the Warrants shall
first reduce to zero the number of Warrant Shares subject to such Call Notice
prior to reducing the remaining Warrant Shares available for purchase under this
Warrant.  For example, if (A) this Warrant then permits the Holder to
acquire 100 Warrant Shares, (B) a Call Notice pertains to 75 Warrant Shares, and
(C) prior to 6:30 p.m. (Los Angeles, California time) on the Call Date the
Holder tenders a Notice of Exercise in respect of 50 Warrant Shares, then (x) on
the Call Date the right under this Warrant to acquire 25 Warrant Shares will be
automatically cancelled, (y) the Company, in the time and manner required under
this Warrant, will have issued and delivered to the Holder 50 Warrant Shares in
respect of the exercises following receipt of the Call Notice, and (z) the
Holder may, until the Termination Date, exercise this Warrant for 25 Warrant
Shares (subject to adjustment as herein provided and subject to subsequent Call
Notices).  Subject again to the provisions of this Section 1(d), the
Company may deliver subsequent Call Notices for any portion of this Warrant for
which the Holder shall not have delivered a Notice of
Exercise.  Notwithstanding anything to the contrary set forth in this
Warrant, the Company may not deliver a Call Notice or require the cancellation
of this Warrant (and any such Call Notice shall be void), unless, from the
beginning of the Measurement Period through the Call Date, (1) the Company shall
have honored in accordance with the terms of this Warrant all Notices of
Exercise delivered by 6:30 p.m. (New York City time) on the Call Date, and (2)
the Registration Statement shall be effective as to all Warrant Shares and the
prospectus thereunder available for use by the Holder for the resale of all such
Warrant Shares, and (3) the Common Stock shall be listed or quoted for trading
on the Trading Market, and (4) there is a sufficient number of authorized shares
of Common Stock for issuance of all Securities under the Transaction Documents,
and (5) the issuance of the shares shall not cause a breach of any provision of
Section 1(d) herein.  The Company’s right to call the Warrants under
this Section 1(d) shall be exercised ratably among the Holders based on each
Holder’s initial purchase of Warrants.

     

    
      
         

      

      
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    Section
2.         
   Certain
Adjustments.

     

    a)           Stock Dividends and
Splits. If the Company, at any time while this Warrant is outstanding:
(i) pays a stock dividend or otherwise make a distribution or distributions on
shares of its Common Stock or any other equity or equity equivalent securities
payable in shares of Common Stock (which, for avoidance of doubt, shall not
include any shares of Common Stock issued by the Company upon exercise of this
Warrant), (ii) subdivides outstanding shares of Common Stock into a larger
number of shares, (iii) combines (including by way of reverse stock split)
outstanding shares of Common Stock into a smaller number of shares or (iv)
issues by reclassification of shares of the Common Stock any shares of capital
stock of the Company, then in each case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common
Stock (excluding treasury shares, if any) outstanding immediately before such
event and of which the denominator shall be the number of shares of Common Stock
outstanding immediately after such event and the number of shares issuable upon
exercise of this Warrant shall be proportionately adjusted such that the
aggregate Exercise Price of this Warrant shall remain unchanged.  Any
adjustment made pursuant to this Section 2(a) shall become effective immediately
after the record date for the determination of stockholders entitled to receive
such dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or
re-classification.

     

    b)           Number of Warrant
Shares.  Simultaneously with any adjustments to the Exercise
Price pursuant to Subsection (a), the number of Warrant Shares that may be
purchased upon exercise of this Warrant shall be increased or decreased
proportionately, so that after such adjustment the aggregate Exercise Price
payable hereunder for the increased or decreased number of Warrant Shares shall
be the same as the aggregate Exercise Price in effect immediately prior to such
adjustment.

     

    c)           Calculations. All
calculations under this Section 2 shall be made to the nearest cent or the
nearest 1/100th of a share, as the case may be. For purposes of this Section 2,
the number of shares of Common Stock deemed to be issued and outstanding as of a
given date shall be the sum of the number of shares of Common Stock (excluding
treasury shares, if any) issued and outstanding.

     

    d)           Notice to
Holder.

     

    i.           Adjustment to Exercise
Price. Whenever the Exercise Price is adjusted pursuant to any provision
of this Section 2, the Company shall promptly mail to the Holder a notice
setting forth the Exercise Price after such adjustment and setting forth a brief
statement of the facts requiring such adjustment.

     

    
      
         

      

      
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    ii.           Notice to Allow Exercise by
Holder. If (A) the Company shall declare a dividend (or any other
distribution in whatever form) on the Common Stock, (B) the Company shall
declare a special nonrecurring cash dividend on or a redemption of the Common
Stock, (C) the Company shall authorize the granting to all holders of the Common
Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights, (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification of the Common
Stock, any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, of any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property, or (E) the Company shall authorize the voluntary
or involuntary dissolution, liquidation or winding up of the affairs of the
Company, then, in each case, the Company shall cause to be mailed to the Holder
at its last address as it shall appear upon the Warrant Register of the Company,
at least twenty (20) calendar days prior to the applicable record or effective
date hereinafter specified, a notice stating (x) the date on which a record is
to be taken for the purpose of such dividend, distribution, redemption, rights
or warrants, or if a record is not to be taken, the date as of which the holders
of the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which
such reclassification, consolidation, merger, sale, transfer or share exchange
is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided that the failure to mail such notice or any defect
therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice.  The Holder is
entitled to exercise this Warrant during the period commencing on the date of
such notice to the effective date of the event triggering such
notice.

     

    Section
3.      
      Transfer of
Warrant.

     

    a)           Transferability.  Subject
to compliance with any applicable securities laws and the conditions set forth
in Section 3(d) hereof, this Warrant and all rights hereunder (including,
without limitation, any registration rights unless inclusion of such transferee
would require filing a post-effective amendment) are transferable, in whole or
in part, upon surrender of this Warrant at the principal office of the Company
or its designated agent, together with a written assignment of this Warrant
substantially in the form attached hereto duly executed by the Holder or its
agent or attorney and funds sufficient to pay any transfer taxes payable upon
the making of such transfer.  The assignee shall also agree to all
terms of the Warrant as applicable.  Upon such surrender and, if
required, such payment, the Company shall execute and deliver a new Warrant or
Warrants in the name of the assignee or assignees, as applicable, and in the
denomination or denominations specified in such instrument of assignment, and
shall issue to the assignor a new Warrant evidencing the portion of this Warrant
not so assigned, and this Warrant shall promptly be cancelled.  The
Warrant, if properly assigned, may be exercised by a new holder for the purchase
of Warrant Shares without having a new Warrant issued.

     

    b)           New Warrants. This
Warrant may be divided or combined with other Warrants upon presentation hereof
at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney.  Subject to compliance
with Section 4(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice. All Warrants issued on transfers or exchanges shall be dated
the original Issue Date and shall be identical with this Warrant except as to
the number of Warrant Shares issuable pursuant thereto.

     

    
      
         

      

      
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    c)           Warrant Register. The
Company shall register this Warrant, upon records to be maintained by the
Company for that purpose (the “Warrant Register”),
in the name of the record Holder hereof from time to time.  The
Company may deem and treat the registered Holder of this Warrant as the absolute
owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, absent actual notice to the
contrary.

     

    d)           Transfer
Restrictions. This Warrant may only be disposed of in compliance with
state and Federal securities laws. If, at
the time of the surrender of this Warrant in
connection with any transfer of this Warrant, the transfer of this Warrant shall
not be either (i) registered pursuant to an effective registration statement under the Securities Act and under applicable state securities or blue sky laws or
(ii) eligible for resale without volume or manner-of-sale restrictions pursuant
to Rule 144, the transferee of this Warrant
shall, as a condition of the Company allowing such transfer, agree in writing to be bound by the terms of this
Warrant.

     

    Section
4.      
      Miscellaneous.

     

    a)           No Rights as Stockholder
Until Exercise.  This Warrant does not entitle the Holder to
any voting rights or other rights as a stockholder of the Company prior to the
exercise hereof as set forth in Section 1(c)(i).

     

    b)           Loss, Theft, Destruction or
Mutilation of Warrant. The Company covenants that upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant or any stock certificate relating to
the Warrant Shares, and in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to it (which, in the case of the Warrant, shall
not include the posting of any bond), and upon surrender and cancellation of
such Warrant or stock certificate, if mutilated, the Company will make and
deliver a new Warrant or stock certificate of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock certificate.

     

    c)           Saturdays, Sundays,
Holidays, etc.  If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not
be a Business Day, then, such action may be taken or such right may be exercised
on the next succeeding Business Day.

     

    d)           Authorized
Shares.

     

    The
Company covenants that, during the period the Warrant is outstanding, it will
reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of the Warrant Shares upon the exercise of
any purchase rights under this Warrant.  The Company further covenants
that its issuance of this Warrant shall constitute full authority to its
officers who are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for the Warrant Shares upon the
exercise of the purchase rights under this Warrant.  The Company will
take all such reasonable action as may be necessary to assure that such Warrant
Shares may be issued as provided herein without violation of any applicable law
or regulation, or of any requirements of the Trading Market upon which the
Common Stock may be listed.  The Company covenants that all Warrant
Shares which may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights represented by this
Warrant, be duly authorized, validly issued, fully paid and nonassessable and
free from all taxes, liens and charges created by the Company in respect of the
issue thereof (other than taxes in respect of any transfer occurring
contemporaneously with such issue).

     

    
      
         

      

      
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    Except
and to the extent as waived or consented to by the Holder, the Company shall not
by any action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant against
impairment.  Without limiting the generality of the foregoing, the
Company will (i) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value, (ii) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable
Warrant Shares upon the exercise of this Warrant and (iii) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof, as may be,
necessary to enable the Company to perform its obligations under this
Warrant.

     

    Before
taking any action which would result in an adjustment in the number of Warrant
Shares for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents
thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof.

     

    e)           Jurisdiction. All
questions concerning the construction, validity, enforcement and interpretation
of this Warrant shall be determined in accordance with the provisions of the
Purchase Agreement.

     

    f)           Restrictions.  The
Holder acknowledges that the Warrant Shares acquired upon the exercise of this
Warrant, if not registered, will have restrictions upon resale imposed by state
and federal securities laws.

     

    g)           Investment
Representation.  The Holder by accepting this Warrant
represents that the Warrant Holder is acquiring this Warrant for its own account
or the account of an affiliate for investment purposes and not with the view to
any offering or distribution and that the Warrant Holder will not sell or
otherwise dispose of this Warrant or the underlying Warrant Shares in violation
of applicable securities laws. The Warrant Holder acknowledges that the
certificates representing any Warrant Shares will bear a legend indicating that
they have not been registered under the United States Securities Act of 1933, as
amended (the “1933
Act”) and may not be sold by the Warrant Holder except pursuant to an
effective registration statement or pursuant to an exemption from registration
requirements of the 1933 Act and in accordance with federal and state securities
laws.  If this Warrant was acquired by the Warrant Holder pursuant to
the exemption from the registration requirements of the 1933 Act afforded by
Regulation S thereunder, the Warrant Holder acknowledges and covenants that this
Warrant may not be exercised by or on behalf of a Person during the one year
distribution compliance period (as defined in Regulation S) following the date
hereof.

     

    
      
         

      

      
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    h)           Nonwaiver and
Expenses.  No course of dealing or any delay or failure to
exercise any right hereunder on the part of Holder shall operate as a waiver of
such right or otherwise prejudice Holder’s rights, powers or remedies,
notwithstanding the fact that all rights hereunder terminate on the Termination
Date.  If the Company willfully and knowingly fails to comply with any
provision of this Warrant, which results in any material damages to the Holder,
the Company shall pay to Holder such amounts as shall be sufficient to cover any
costs and expenses including, but not limited to, reasonable attorneys’ fees,
including those of appellate proceedings, incurred by Holder in collecting any
amounts due pursuant hereto or in otherwise enforcing any of its rights, powers
or remedies hereunder.

     

    i)           Notices.  Any
notice, request or other document required or permitted to be given or delivered
to the Holder by the Company shall be delivered in accordance with the notice
provisions of the Purchase Agreement.

     

    j)           Limitation of
Liability.  No provision hereof, in the absence of any
affirmative action by Holder to exercise this Warrant to purchase Warrant
Shares, and no enumeration herein of the rights or privileges of Holder, shall
give rise to any liability of Holder for the purchase price of any Common Stock
or as a stockholder of the Company, whether such liability is asserted by the
Company or by creditors of the Company.

     

    k)           Remedies.  The
Holder, in addition to being entitled to exercise all rights granted by law,
including recovery of damages, will be entitled to specific performance of its
rights under this Warrant.  The Company agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach
by it of the provisions of this Warrant and hereby agrees to waive and not to
assert the defense in any action for specific performance that a remedy at law
would be adequate.

     

    l)           Successors and
Assigns.  Subject to applicable securities laws, this Warrant
and the rights and obligations evidenced hereby shall inure to the benefit of
and be binding upon the successors of the Company and the successors and
permitted assigns of Holder.  The provisions of this Warrant are
intended to be for the benefit of all Holders from time to time of this Warrant
and shall be enforceable by the Holder or holder of Warrant Shares.

     

    m)           Amendment.  This
Warrant may be modified or amended or the provisions hereof waived with the
written consent of the Company and Holders holding Warrants at least equal to
the majority of the Warrant Shares issuable upon exercise of all then
outstanding Warrants.

     

    n)           Severability.  Wherever
possible, each provision of this Warrant shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this
Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of
this Warrant.

     

    
      
         

      

      
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    o)           Headings.  The
headings used in this Warrant are for the convenience of reference only and
shall not, for any purpose, be deemed a part of this Warrant.

    

    ********************

     

    (Signature
Pages Follow)
 

    
      
         

      

      
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    IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
officer thereunto duly authorized as of the date first above
indicated.

     

    
      
        
          	
                  VLOV,
      INC.

                
	 
      
	
                  By: 

                	  
      
	 
      	
                  Name:
      Qingqing Wu

                
	 
      	
                  Title:
      Chief Executive Officer

                

        

      

    

    

    THE
UNDERSIGNED HOLDER hereby acknowledges and agrees to be bound by the terms of
this Warrant, and further agrees that such representations as set forth in this
Warrant applicable to a Holder are true and accurate as to the undersigned
Holder.

    
    

    
      
        
          
            
              
                	
                        Name:

                      	 
      
	 
      	 
      
	
                        Signature:  

                      	 
      
	 
      	 
      
	
                        Title:

                      	 
      

              

            

          

        

      

    

    
    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    NOTICE
OF EXERCISE

     

    TO:       VLOV,
INC.

    

    The
undersigned hereby elects to purchase ________ Warrant Shares of the Company
pursuant to the terms of the attached Warrant (only if exercised in full), and
tenders herewith payment of the exercise price in full, together with all
applicable transfer taxes, if any, as follows:

     

    _____  CASH: $_______________
= (Exercise Price x Warrant Shares exercised)

     
Payment shall take the form of lawful money of the United States
by:

      _____  enclosed
check

      _____  wire
transfer

     
_____  other

    

    _____  CASHLESS
EXERCISE:

    
 

      Net number of Warrant Shares to
be issued to Holder: __________*

    

     *
based on: Net Number = (A x B) - (A x
C)

                            
    B

     

    Where:

    A= the
total number of shares with respect to which this Warrant is then being
exercised in a Cashless Exercise.

    B= the
Market Price on the Trading Day immediately preceding the date of the Exercise
Notice.

    C= the
Exercise Price then in effect for the applicable Warrant Shares at the time of
such exercise.

     

    Please
issue a certificate or certificates representing said Warrant Shares in the name
of the undersigned or in such other name as is specified below:

     

    _______________________________

    

    The
Warrant Shares shall be delivered to the following DWAC Account Number or by
physical delivery of a certificate to:

       

    _______________________________

     

    _______________________________

    

    Accredited Investor.
The undersigned is an “accredited investor” as defined in Regulation D
promulgated under the Securities Act of 1933, as amended.

    

    [SIGNATURE
OF HOLDER]

    

    Name of
Investing Entity:
_______________________________________________________________________________

    Signature of Authorized Signatory of
Investing Entity:
________________________________________________________

    Name of
Authorized Signatory:
__________________________________________________________________________

    Title of
Authorized Signatory:
___________________________________________________________________________

    Date:
_______________________________________________________________________________________________

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
 

    ASSIGNMENT
FORM

    

    (To
assign the foregoing warrant, execute

    this form
and supply required information.

    Do not
use this form to exercise the warrant.)

    

    FOR VALUE
RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all
rights evidenced thereby are hereby assigned to

     

    _______________________________________________
whose address is

    

    _______________________________________________________________.

    

    _______________________________________________________________

    

    Dated:
______________, _______

    

    
      
        
          
            
              	
                      Holder’s Signature:  

                    	 
      
	 
      	 
      
	
                      Holder’s Address:

                    	 
      
	 
      	 
      
	 
      	 
      

            

          

        

      

    

    

    Signature
Guaranteed: ___________________________________________

    

    NOTE: The
signature to this Assignment Form must correspond with the name as it appears on
the face of the Warrant, without alteration or enlargement or any change
whatsoever, and must be guaranteed by a bank or trust company. Officers of
corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing
Warrant.Exhibit
10.21

       

      (Unofficial
English Translation)

       

      Jinduren
Regional Distribution Agreement

       

      Contract
No.: JDR2009-HZ

       

      Party A:
Jinjiang Yinglin Jinduren Fashion Limited

       

      Signature
and Seal: [SEAL]

       

      Party B:
C-002 OF Mingzhu 100 Market

       

      Signature:
[SEAL] (Business License No./ID No. _______________________)

       

      Party A
the creator and legal owner of the Jinduren trademark and clothing lines,
advertising and marketing materials and other products that bear the Jinduren
trademark. This Regional Distribution Agreement is entered into by and between
the above parties on May 25, 2009, in
Fujian
Province, Shishi City, based on
the principle of mutual benefits and long-term cooperation.

       

      In
accordance with Party A’s regional distribution planning and strategy, and
through good faith negotiation, the parties agree as follows:

       

      
        	
                I.

              	
                Substance,
      Region and Method of Distribution Rights
Granted

              

      

       

      
        	
                 
      

              	
                1.

              	
                Party
      A hereby appoints Party B as the exclusive regional distributor of
      “Jinduren” brand products in the _____ area
      of Zhejiang
      Province. Party B shall not sell Jinduren products beyond the appointed
      region without Party A’s prior written
consent.

              

      

       

      
        	
                 
      

              	
                2.

              	
                No
      partnership is formed, and Party A and Party B are legally independent,
      under this agreement. Any economic, civil or other legal dispute arising
      from or during the course of Party B’s business operations shall have no
      bearing on Party A.

              

      

       

      
        	
                 
      

              	
                3.

              	
                Term
      of the Agreement: from May 25, 2009 to
      May 25,
      2010.

              

      

       

      
        	
                II.

              	
                Terms
      of and Warranty to the Distribution Rights
  Granted

              

      

       

      
        	
                 
      

              	
                1.

              	
                From
      the execution date of this agreement, Party B shall pay a good-faith
      deposit of RMB _____ to
      Party A as follows: a single payment of RMB _____ within
      three days from the execution date of this agreement. Within three days
      from the deposit appearing on its account, Party A shall issue a receipt
      for the deposit and its exclusive regional distribution authorization
      certificate. Failure to pay the deposit by the specified time shall render
      this agreement void. At the end of the term, if the parties do not intend
      to extend this agreement, Party A shall return the deposit to Party B
      without interest within 30 days from the completion by the parties of all
      separation procedures.

              

      

       

      In
addition, this agreement shall remain effective during its term only if the
deposit for each season’s order is paid into Party A’s designated account within
10 days of placing such order.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
      

      
        	
                 
      

              	
                2.

              	
                Party
      B shall set up a “Jinduren” distribution center in Hangzhou City,
      Zhejiang
      Province, equipped with a display area of no less than 60 square meters
      and a warehouse, which Party B warrants shall be renovated and improved in
      accordance with Party A’s design requirements and brand
      uniformity.

              

      

       

      
        	
                 
      

              	
                3.

              	
                Party
      B shall set up an outdoor billboard of no less than 80 square meters in a
      highly-trafficked area or wholesale market in the city where the
      distribution center is located.

              

      

       

      
        	
                 
      

              	
                4.

              	
                Party
      B represents that, during the term of this
  agreement:

              

      

       

      
        	
                 
      

              	
                A.

              	
                Party
      B shall not sell “Jinduren” brand products to other regional distributors
      or establish distribution networks outside of its appointed
      region.

              

      

       

      
        	
                 
      

              	
                B.

              	
                Party
      B shall not sell or display products other than “Jinduren” brand products
      in its Jinduren store.

              

      

       

      
        	
                 
      

              	
                C.

              	
                Party
      B shall comply with all terms and conditions set forth in this
      agreement.

              

      

       

      
        	
                 
      

              	
                5.

              	
                No
      later than _____, Party
      B shall develop and establish a sales network for Jinduren products within
      its appointed region, which shall cover no less than 70% of the appointed
      region, or Party A may reduce the size of the appointed region or
      terminate Party B’s distribution
rights.

              

      

       

      
        	
                III.

              	
                Payment
      Obligations and Calculation

              

      

       

      
        	
                 
      

              	
                1.

              	
                Product
      Supply, Exchange and Return

              

      

       

      Product Pricing: Party B’s
quoted wholesale distribution price should be at 65% of the uniform
retail price set by Party A. Party A shall set nationwide uniform retail and
wholesale prices. In principle, Party B’s wholesale price cannot be more than
55% of the
nationwide uniform retail price. Party B shall not increase its wholesale price
without Party A’s consent.

       

      Product Distribution: Party B
shall cooperate with all of Party A’s promotional and sales activities, so as to
ensure product systemization.

       

      
        	
                 
      

              	
                A.

              	
                The
      first collection of every season shall be provided by Party A to Party
      B:

              

      

       

      
        	
                 
      

              	
                ·

              	
                Party
      B shall attend Party A’s sales fair every season, and shall consult the
      2006 Purchasing Policy on the ordering procedures and rules applicable to
      main product lines and accessories.

              

      

       

      
        	
                 
      

              	
                ·

              	
                If
      Party B fails to attend a sales fair without reason, Party A may terminate
      Party B’s distribution rights.

              

      

       

      
        	
                 
      

              	
                B.

              	
                Returns:

              

      

       

      
        	
                 
      

              	
                ·

              	
                Products
      with defects that exceed national quality standards may be returned within
      15 days of receipt of such products. Party A has the right to refuse the
      return of any product if the defect is caused by Party B or washing method
      not specified by Party A. Additional details are provided in the 2006
      Returns Policy.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                2.

              	
                Payment

              

      

       

      To ensure
that Party A can timely supply products to Party B, Party B must operate in
accordance with Party A’s financial management requirements. If Party B’s
accounts payable to Party A exceed RMB _____, Party A has
the right to stop further product delivery or to terminate Party B’s
distribution rights. At Party A’s request, Party B must immediately settle any
credit that Party A has agreed to extend.

       

      
        	
                 
      

              	
                3.

              	
                Distribution
      of Products

              

      

       

      Party A
shall be responsible the delivery of products to Party B, with Party B liable
for all transportation and insurance costs (including for returns).

       

      
        	
                IV.

              	
                Rights
      and Obligations

              

      

       

      Party
A’s Rights and Obligations

       

      
        	
                 
      

              	
                1.

              	
                Party
      A authorizes Party B to distribute “Jinduren” brand products within the
      appointed region, to become effective only after the execution of this
      agreement and Party A’s issuance of the exclusive regional distribution
      authorization certificate to Party B. If the agreement is not renewed at
      the end of its term, Party A shall have the right to take back the
      certificate.

              

      

       

      
        	
                 
      

              	
                2.

              	
                Party
      A may inspect the “Jinduren” products sold by Party B to determine
      authenticity and quality, which determination shall be deemed
      final.

              

      

       

      
        	
                 
      

              	
                3.

              	
                Party
      A shall provide Party B with “Jinduren” products of good quality and
      consistent style, updated every season, in order to meet Party B’s
      distribution requirements and protect Party B’s market share within the
      appointed region.

              

      

       

      
        	
                 
      

              	
                4.

              	
                Party
      A shall be obligated to assist Party B with expanding its sales network
      and provide updated product information and each season’s promotional
      materials.

              

      

       

      
        	
                 
      

              	
                5.

              	
                POP
      banners and posters for each season’s new products and any promotional
      event shall be provided to Party B without
  charge.

              

      

       

      
        	
                 
      

              	
                6.

              	
                Party
      A shall design any computer graphics required by Party B without charge,
      and the expenses for all graphic arts (including display structures) shall
      be borne equally by Party A and Party
B.

              

      

       

      Party
B’s Rights and Obligations

       

      
        
          	
                   
      

                	
                  1.

                	
                  At
      any time while Party B is an authorized distributor, Party B shall not
      assign or transfer its appointed region to a third party; otherwise Party
      A shall have the right to terminate Party B’s distribution
      rights.

                
	 	 	 
      

        

      

      
      

      
        	
                 
      

              	
                2.

              	
                While
      Party B has the exclusive right to distribute “Jinduren” products within
      its appointed region, Party B must also strictly comply with the rules
      governing the use of its exclusive regional distribution authorization
      certificate, and shall return the certificate at the end of its term and
      reapply for the certificate in writing in accordance with this
      agreement.

              

      

       

      
        	
                 
      

              	
                3.

              	
                Party
      B has the right to take action against any unauthorized sales or
      counterfeit of “Jinduren” products or any other infringement of
      intellectual property within its appointed region at any time, and has the
      duty to coordinate with Party A to correct such matters and protect the
      brand’s image.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                4.

              	
                Party
      B has the right to conduct promotional activities within its appointed
      region, provided that large-scale promotional activities can be conducted
      only as permitted by and coordinated with Party
  A.

              

      

       

      
        	
                 
      

              	
                5.

              	
                Party
      B has the right to plan out the development of the “Jinduren” network
      within its appointed region, and to strategize, organize and devise
      promotional activities accordingly.

              

      

       

      
        	
                 
      

              	
                6.

              	
                In
      accordance with Party A’s sales policy, Party B shall have the obligation
      to provide such sales reports and market feedback information as required
      by Party A, coordinate with Party A to complete market
      research,  and provide Party A with competitor information and
      fashion trend data.

              

      

       

      
        	
                 
      

              	
                7.

              	
                All
      business transactions between Party B and a third party are independent of
      Party A. Under no circumstance shall Party B have the right to enter into
      any obligation on behalf of Party
A.

              

      

       

      
        	
                 
      

              	
                8.

              	
                Party
      B shall undertake any expense incurred in the course of its business
      operations, including tax, city inspection fee, lease and
      insurance.

              

      

       

      
        	
                 
      

              	
                9.

              	
                Party
      B shall provide relevant invoices and receipts before the 5th day of each
      month in order to verify its accounts with Party
  A.

              

      

       

      
        	
              	
                10.

              	
                Party
      B shall provide its gross sales report to Party A by facsimile or mail to
      Party A’s headquarters on the 5th day of each
      month.

              

      

       

      
        	
              	
                11.

              	
                Party
      B shall be equipped with computerized management
  system.

              

      

       

      
        	
                V.

              	
                Rewards

              

      

       

      
        	
                 
      

              	
                1.

              	
                Based
      on Party B’s yearly performance (commencing from the agreement execution
      date), Party A shall reward Party B as follows:  If Party B’s
      total purchases and payments reach RMB 50 million
      within the term of the agreement, Party A shall support 30% of Party B’s
      expenses for display structures and 30% of Party B’s expenses for
      large-scaled outdoor advertisings approved by Party
  A.

              

      

       

      
        	
                 
      

              	
                2.

              	
                If
      Party B’s total purchases and payments reach RMB 70 million
      within the term of the agreement, Party A shall support 50% of Party B’s
      expenses for display structures and 50% of Party B’s expenses for
      large-scaled outdoor advertisings approved by Party
  A.

              

      

       

      
        	
                 
      

              	
                3.

              	
                If
      Party B’s total purchases and payments reach RMB 90 million
      within the term of the agreement, Party A shall support 100% of Party B’s
      expenses for display structures and 100% of Party B’s expenses for
      large-scaled outdoor advertisings approved by Party
  A.

              

      

       

      
        	
                 
      

              	
                4.

              	
                Party
      A shall support 30% of the expenses of Party B’s retail distributors for
      display structures that are borne by Party
B.

              

      

       

      
        	
                 
      

              	
                5.

              	
                For
      every Jinduren store that Party B opens, Party A shall support Party B
      based on the size of the store as follows: RMB 1,000 of gifts for 30-50
      square meters, RMB 1,500 of gifts for 50-80 square meters, and RMB 2,000
      for above 80 square meters.

              

      

       

      
        	
                VI.

              	
                Termination
      of the Agreement

              

      

       

      At the
end of the term or if this agreement is terminated for any other reason, Party B
shall:

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                1.

              	
                Settle
      all the accounts with Party A.

              

      

       

      
        	
                 
      

              	
                2.

              	
                Terminate
      all use of Party A’s commercial
labels.

              

      

       

      
        	
                 
      

              	
                3.

              	
                Terminate
      all sales activities relating to Party
A.

              

      

       

      
        	
                 
      

              	
                4.

              	
                Terminate
      all use of the “Jinduren” trademark and any related
      registration.

              

      

       

      
        
          	
                  VII. 

                	
                  Supplemental
      Provisions

                

        

      

       

      
        	
                 
      

              	
                1.

              	
                This
      agreement shall be executed in two duplicate originals. Each party shall
      hold one duplicate original and all duplicate originals shall have the
      same legal effect.

              

      

       

      
        	
                 
      

              	
                2.

              	
                Party
      A shall reserve the right to supplement this
  agreement.

              

      

       

      
        	
                 
      

              	
                3.

              	
                Party
      A has the final interpretation right to this
  agreement.

              

      

       

      
        	
                 
      

              	
                4.

              	
                At
      the end of the term, Party B shall have priority renewal right if Party B
      has not breached this agreement and agrees to
  renewal.

              

      

       

      
        	
                 
      

              	
                5.

              	
                Party
      B’s business license and a copy of the resident identification card of
      Party B’s legal representative are attached
  herewith.

              

      

       

      
        	
                 
      

              	
                6.

              	
                Any
      alteration or correction to this agreement is
  invalid.

              

      

       

      
        	
                 

              	
                7.

              	
                Matters
      not stated in this agreement shall be settled through consultation of the
      parties.

              

      

       

      
        
          
            	
                    Party
      A: Jinjiang Yinglin Jinduren Fashion Limited

                  	
                    Party
      B:

                  
	 
      	 
      
	
                    Seal:
      [SEAL]

                  	
                    Seal:
      [SEAL]

                  
	 
      	 
      
	
                    Account
      No.:

                  	
                    Account
      No.:

                  
	 
      	 
      
	
                    Bank
      Name:

                  	
                    Bank
      Name:

                  
	 
      	 
      
	
                    Address:

                  	
                    Address:

                  
	 
      	 
      
	
                    Tax
      No. :

                  	
                    Tax
      No. :

                  
	 
      	 
      
	
                    Signature:

                  	
                    Signature:

                  
	 
      	 
      
	
                    Tel:

                  	
                    Tel:

                  
	 
      	 
      
	
                    Fax:

                  	
                    Fax:

                  
	 
      	 
      
	 
      	
                    Signing
      Date: May 28,
      2009

                  
	 
      	 
      
	 
      	
                    Signing
      Place: Shishi
      City

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