Document:

HEILONGJIANG
LANXI SUNRISE LINEN TEXTILE INDUSTRY

    CO.,LTD

    And

    Shufan
Wang, Lijie Fu

    LANXI
TIANXIANFANG LINEN CO., LTD

    

    Stock
Acquisition Agreement

    

    Harbin  China

    November
15, 2010

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Content

     

    1. The
parties of this Agreement

     

    2. The
basic objective facts of this Agreement

     

    3. The
status of this Agreement

     

    4. The
acquisition / transfer object

     

    5 The
basis and price to determine the stock acquisition / transfer price

     

    6 The
payment deadline and method of the acquisition price

     

    7. Debt
redemption supervision

     

    8. The
prerequisite of stock acquisition / transfer

     

    9. The
post processing provided that the prerequisite is out of completion

     

    10.
Delivery

     

    11 The
transferor joint guarantee

     

    12. The
guarantee of stable operation of all parties

     

    13 Duty
of confidentiality

     

    14
Termination of the Agreement

     

    15
Liability for breach of contract

     

    16.
Dispute Resolution

     

    17.
Notice

     

    18
Miscellaneous

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    The
Parties in this Agreement:

     

    The
Agreement was co-signed by the following parties on November 15, 2010 inHarbin,
Heilongjiang Province, PRC.

     

    Acquisition
Party (hereinafter as ‘Party A’): HEILONGJIANG LANXI SUNRISE LINEN TEXTILE
INDUSTRY CO., LTD

     

    Address:
Chengdong Street, Lanxi County, Heilongjiang Province

     

    Legal
Representative: RenGao

     

    Transferor (hereinafter as
‘Party B’): Shufan Wang, female, Han,
was born on March 27, 1954, ID Card No: 230103195403275528

    Transferor (hereinafter as
‘Party C’): Lijie Fu, male, Han, was
born on August 29, 1969, ID Card No: 232325196908290016

     

    Target
Corporation (hereinafter as ‘Party D’): LANXI TIANXIANFANG LINEN CO.,
LTD

     

    Address:
39th Group, 4th Committee, Chengdong Street, LanxiCounty

     

    Legal
representative: Lijie Fu

     

    Article
I. The Basic Objective Facts Of This Agreement

     

    1.1 Party
A is a limited liability company (joint venture) founded based on the laws of
the People's Republic of China and validly existed. It was registered in Suihua
Administrative Bureau for Industry and Commerce of Heilongjiang Province with a
registered capital of RMB6 million. Its business license registration number is
232325100000046, and the business scope includes the production of linen yarn,
linen fiber, linen finished products and technology development consulting. The
business period is from June 11, 2002 to June 10, 2014.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    1.2 Both
Party B and Party C are citizens of the PRC, until the effective date of this
agreement; Party B legally held 80% stock equity of Party D, while Party C
legally held 20% stock equity of Party D.

     

    1.3 Party
D is a limited liability company founded based on the laws of the People's
Republic of China and validly existed. It was registered in Lanxi Administrative
Bureau for Industry and Commerce of Heilongjiang Province with a registered
capital of RMB10 million. Its business license registration number is
232325100007352, and the business scope includes linen and linen products deep
processing, distribution, import and export. The business period is from August
10, 2006 to August 10, 2026, and the shareholders are Party B and Party
C.

     

    1.4 Party
A is based on the enterprise development on their own, by way of the acquisition
of the entire equity of Party D held by Party B and Party C so as to acquire
Party D and eventually own the entire equity of Party D, therefore, Party A,
Party B and Party C have co-signed the “Intention Agreement of the Acquisition”
on April 26, 2010.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    1.5 In
accordance with the provision of the “Intention Agreement of the Acquisition”,
now Party A has completed the due diligence on the financial and legal items of
Party D, and has not found any of the facts that the target company has
undisclosed external guarantees, litigation, false assets, major business risk
which may have substantial influence on the acquisition of stock
equity.

     

    1.6 Until
31 December 2008, the total assets of Party D were RMB45,615,029.35, the total
liabilities were RMB22,531,376.90, the total equity of owners were
RMB23,083,652.45; Until 31 December 2009, the total assets of Party D were
RMB47,553,638.15, the total liabilities were RMB22,810,224.82, the total equity
of owners were RMB24,743,413.33; Heilongjiang ZhongmingFutong Accounting Firm
issued HZMFTKS (2010) No. 10031 Audit Report (Appendix I),
HZMFTKS (2010) No 10032 Audit
Report (Appendix II) respectively on April 18, 2010, and April 19, 2010,
and the audit opinion of Heilongjiang ZhongmingFutong Accounting Firm was that
the target company’s financial statements have been prepared in accordance with
Accounting Standards for Business Enterprises and the Enterprise Accounting System,
and fairly reflected the financial situation of the target company on December
31, 2008 and December 31, 2009 in all material aspects, as well as the operating
results and cash flows in 2008 and 2009.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    1.7
Heilongjiang Zhongming National Forest Assets Appraisal Co., Ltd issued
HZLPBZD[2010] No. 10060 Assets
Appraisal Report (Appendix III) on April 28, 2010, the appraisal
agencies, based on the target company’s financial statements, the external
economic environment and market conditions on the assessment benchmark date of
March 31, 2010, determined that the target company’s assessed assets value was
RMB44,401,485.41, assessed value of liabilities was RMB22,750,642.42 and the
assessed value of net assets was RMB21,650,842.99.

     

    1.8 In
view of these above objective facts, based on the equal and free will
principal  andafter full consultation, the parties have reached the
Agreement so as to jointly abideon the acquisition of the entire equity of the
target company by Party A which was held by Party B and Party C.

     

    Article
II.The Status Of This Agreement

     

    This
agreement is a final determination reached until the effective date of this
Agreement based on all intentions agreed by Party A, Party B, Party C and Party
D on the related matters of equity acquisition / transfer, also a final
agreement reached by all parties relating to specific transactions. During the
performance of this agreement by all parties, in the event that any oral or
written various consensuses, guarantees, promises, understandings, agreements
and other related issues agreed in the past occurred is inconsistence with the
Agreement, this Agreement should govern..

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Article
Iii. The Acquisition / Transfer Object

     

    3.1 Until
the effective date of this Agreement, Party B has paid all subscribed capital in
full according to the provision of the Article of Incorporation of Party D
company, legally holding 80% stock equity of Party D, Party C has paid all
subscribed capital in full according to the provision of the Article of
Incorporation  of Party D company, legally holding 20% stock equity of
Party D.

     

    3.2 Party
B and Party C stated as follows to Party A:

     

    3.2.1 The
80% stock equity of Party D held by Party B was the legally acquired equity
invested by his own lawful property, so the equity is owned by himself solely,
without any ownership dispute, without collateral security and without any
rights restricted.

     

    3.2.2 The
20% stock equity of Party D held by Party C was the legally acquired equity
invested by his own lawful property, so the equity is owned by himself solely,
without any ownership dispute, without collateral security and without any
rights restricted.

     

    3.3 Party
B and Party C voluntarily transfer the target company’s entire equity held by
them respectively to Party A in one time under the regulation of theAgreement;
Party A voluntarily purchases all of the target company’s entire equity held by
Party B and Party C under the regulation of theAgreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Article
IV.The Basis And Price To Determine The Stock Acquisition / Transfer
Price

     

    4.1 The
parties agree the determination that the assessed value of the target company’s
total assets assessed by the assessment agency with statutory qualifications
based on the financial audit of the target company was taken as the benchmark
price of this equity acquisition / transfer. According to Appendix I of this
Agreement, until December 31, 2008, the total assets of Party D were
RMB45,615,029.35; According to Appendix II of this Agreement, until December 31,
2009, the total assets of Party D were RMB47,553,638.15; According to Appendix
III of this Agreement, until the base date of assets assessment of March 31,
2010, the total assets assessed values of Party D were 44,401,485.41
Yuan.

     

    4.2 All
of the parties in this agreement have no objection to above audit and evaluation
on the asset value, therefore, the parties voluntarily and irrevocably confirm
that the stock acquisition / transfer price is
RMB44,401,485.00.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Article
V.Target Company Liabilities And Commitments

     

    5.1 The
parties agree all target company’s legal and valid liabilities which are
determined by the audit report and assessment report issued by audit and
assessment agencies with statutory qualifications. According to Appendix I of
this Agreement, until December 31, 2008, the total liabilities of Party D were
RMB22,531,376.90; According to Appendix II of this Agreement, until December 31,
2009, the total liabilities of Party D were RMB22,810,224.82; According to
Appendix III of this Agreement, until the base date of assets assessment of
March 31, 2010, the total liabilities assessed values of Party D were RMB22,750,
642.42.

     

    5.2 All
of the parties in this agreement have no objection to above audit and evaluation
on liabilities. Hereby Party B and Party C promise and guarantee that the total
liabilities assessed values ofRMB 22,750,642.42 of Party D until the base date
of assets assessment of March 31, 2010 should be undertaken jointly by Party B
and Party C, while Party B and Party C jointly pay off the above liabilities
using the cost paid by Party A, and the remaining cost after paying off the
liabilities of Party D should be paid for Party B and Party C according to the
equity proportion.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Article
VI.The Payment Deadline And Method Of The Acquisition Price

     

    6.1 Party
A, Party B and Party C agree to use RMB as the settlement currency of stock
equity acquisition / transfer.

     

    6.2 Party
A, Party B and Party C agree that after the effective date of this Agreement,
Party A should pay the consideration for all stock equity
acquisition  in one time:

    Within
three working days since the effective date of this Agreement, Party A shall pay
44, RMB401,485.00 to Party B and Party C as the consideration of the equity
acquisition (RMBForty-four million four hundred one thousand four hundred and
eighty-five);

     

    Since the
effective date of this Agreement, Party D will be responsible for the completion
of stock equity business change of registration within twenty working days and
change the registration of the entire stock equity under the name of Party B and
Party C to be under the name of Party A.

     

    6.3 Party
B and Party C should issue a receiving credential written personally to Party A
immediately after receiving the stock equity consideration paid by Party
A.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Article
VII.Debt Redemption Supervision

     

    7.1 Party
B and Party C undertake a liability for satisfaction of RMB (Twenty-two million
seven hundred fifty thousand six hundred and forty-two Yuan, forty-two Fen) for
Party D, and Party A is responsible for supervision.

     

    7.2 Party
B and Party D promise that they will firstly deposit entire RMB22,750,642.42 to
the  bank account designated by Party A within two working days after
fully receiving the stock equity consideration paid by Party A in accordance
with this Agreement, and the funds will be specially used to pay for the above
mentioned liabilities of Party D according to the deadline of redemption of debt
and the payment process should be supervised by the Party A. Before the
completion of all redemption of debt of Party D, the legal fruits of the bank
account belong to Party D.

     

    7.3 If
Party B and Party C are not positive to pay for above liabilities of Party D,
Party A has the right to directly use the funds in the account to pay for
liabilities; If Party A refuses Party B and Party C to use the account balance
to repay the liabilities of Party D, then the debt settlement liability of Party
B and Party C to Party D as regulated in clause 7.1 of this Article is exempted,
meanwhile, Party A shall bear the corresponding liability for
satisfaction.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Article
VIII.The Prerequisite Of Stock Acquisition / Transfer

     

    The
parties jointly determine the following situations are the prerequisites of the
stock equity acquisition / transfer, the agreement will be terminated
voluntarily if any of the condition is not achieved.

     

    8.1 The
smooth delivery of acquisition / transfer object

     

    After the
effective date of the Agreement, in the event that some disputes concerning the
stock equity transferred by Party B or Party C occur in terms
of  ownership, guaranty of pledge, rights restricted, resulting the
inability to achieve the change of business registration, then the Agreement
will terminate voluntarily, and no party will assume the liability for breach of
contract.

     

    8.2
Authority approval and abandonment of the right of preemption.

     

    8.2.1 The
board of shareholders of Party D will pass “resolution of the board of
shareholders” aiming at the matters of the substantive conditions to acquire /
transfer (Appendix IV) entire stock equity of all shareholders determined by
Party A, Party B and Party C under this Agreement, all shareholders should agree
the substantive conditions determined by the Agreement to transfer all stock
equity held by them respectively, and should give up the right of
preemption under the same conditions.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    8.2.2 The
Board of Directors of Party A passes a resolution (Appendix V) and agrees to
acquire all stock equity of Party D held by Party B and Party C.

     

    8.2.3
After the effective date of the Agreement, if the clause 8.2 fails to achieve,
then the Agreement will terminate voluntarily, and no party will assume the
liability for breach of the contract.

     

    Article
IX. The Post Processing Provided That The Prerequisite Is Out Of
Completion

     

    9.1 If
any clause of 8.1, 8.2 in Article VIII fails to achieve, the disputing parties
should notice the other party the legal fact that fails to achieve in writing,
this Agreement will terminate voluntarily since the written notice has been sent
to the other party and no party should assume the liability for breach of
contract.

     

    9.2 After
the emergence of the legal fact that the prerequisite failed to achieve, if
Party A has paid part of the consideration under this Agreement, Party B and
Party C shall one-off fully return principal and interest within three days
after receiving the written notice of Party A.

     

    9.3 After
the emergence of the legal fact that the prerequisite failed to achieve, Party A
shall return and transfer the Party D’s financial books, stamps, benefits
certificate and corporate assets to Party B, Party C and Party D
for  control within three working days.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Article
X. Delivery

     

    10.1 The
delivery of financial and equity certificate

     

    After the
effective date of the Agreement and within three working days after achieving
the precondition provided in clause 8.2 of Article VIII in this Agreement, Party
B and Party C should transfer the Party D’s financial books, stamps and benefits
certificate to party A and Party A should supervise and use during the
transition period. Party A shall make the necessary duty of a good administrator
to supervise reasonably, and shall not privately possess the company’s relevant
documents and seal, dispose corporate assets of Party D or waive relevant legal
rights during the transition period.

     

    The
transition period mentioned in proceeding clause refers to the period from the
effective date of this Agreement until the date that Party A has paid full
consideration on schedule under this Agreement.

     

    10.2 The
transfer of corporate assets

     

    After the
effective date of the Agreement and within three working days after achieving
the precondition in clause 8.2 of Article VIII in this Agreement, Party B and
Party C shall transfer all assets of Party D to Party A for managing and
control. Party shall make the necessary duty of a good administrator and should
not dispose any asset of Party D during the transition period.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    10.3
Change of business registration

     

    After the
effective date of the Agreement and the achievement of the prerequisites in
clause 8.2 of Article VIII of this Agreement, the parties should immediately
deal with the change procedures of business registration, and change the
registration of all stock equity under the name of Party B and Party C to be
under the name of Party A.

     

    10.4
During the period from the base date of assets evaluation (March 31, 2010) to
the expiration of the transition period, the income and liabilities generated by
normal legal business of Party D should be shared and assumed by Party D,
moreover, the transferred cost to Party B and Party C by Party A should be
invariable; all taxes and fees resulting from the stock equity acquisition/
transfer should be assumed by various parties according to the law.

     

    Article
XI.The Transferor Joint Guarantee

     

    11.1
Party B and Party C should undertake the liability for warrant of defects to the
stock equity transferred by them respectively.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    11.2 Hereby Party B and Party
C jointly guarantee: if the possible liabilities of Party D arising due to the
reason of Party B and Party C prior to the date of change of registration are
not specified in the statutory accounts or
liabilities detailed statement of Party D, and have not been recognized as a
liability off the books, or although such liabilities are specified in the
statutory accounts or liabilities detailed statement of Party D before the date
of stock equity changes of
registration, however, the amount of liabilities is greater than the account or
the amount specified in liability detailed statement, then Party B and Party C
should bear joint liabilityfor satisfaction.

     

    11.3
Hereby Party B and
Party C jointly
guarantee: During the period from the base date of assets evaluation
(March 31, 2010) to the effective date of the Agreement, Party B and Party C did
not provide third party guarantee by Party D’s assets, and did not engage in any
related transactions to cause the transfer of Party D’s legal
interests.

     

    Article
XII.The Guarantee Of Stable Operation Of All Parties

     

    12.1
During the period from the base date of assets evaluation (March 31, 2010) to
the expiration of the transition period, the parties shall not in any way
dispose the fixed assets and intangible assets of Party D’s
company.

     

    12.2
Hereby Party B and Party C guarantee that they shall not transfer the business
opportunities of Party D in any way, shall not make any arrangement which is
against the future management of Party D’s company and shall not carry out
guarantee activity which can increase the liabilities of Party D’s company
before the expiry of the transition period.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Article
XIII.Duty Of Confidentiality

     

    13.1 The
parties hereby agree that all terms and contents in this Agreement and the
Appendix, and all information related to one party obtained by another Party
under this agreement are confidential, and the parties have a duty of
confidentiality.However, it is except that such disclosure is the duty and
responsibility required by law.

     

    13.2 The
parties hereby agree that they the confidential information shall not be used
for any purpose other than the following circumstances: required by law,
specified in this Agreement, or any litigation, arbitration, administrative
punishment suffered from this Agreement, even under such circumstances, the
parties should also use the confidential information strictly in accordance with
the legal procedure.

     

    Article
XIV.Termination Of The Agreement

     

    14.1
Termination by the consultation among the parties: if theAgreement cannot be
normally performeddue to force majeure or other circumstances after signed, this
Agreement can be terminated based on the consent of the parties, and no party
should assume theliability for breach of contract.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    14.2
Termination due to breach of contract by one party: after signing the agreement,
if one party definitely expresses or by its behaviors indicates that he will
not  perform its main liabilities, or one party delays to perform the
principal liabilities, and still not fulfill within a reasonable time after
receiving demand, or one party breaches of contract so that the agreement cannot
be performed continuously, therefore the other  party cannot achieve
the objective of the contract, then it  can unilaterally terminate
this Agreement based on the relevant provisions of “Contract Law of
PRC”.

     

    Article
XV.Liability For Breach Of Contract

     

    15.1 The
parties in this agreement should, based on the principle of good
faith,  fully implement this agreement. The circumstances that any
party does not fulfill the obligations of this agreement so that other party
cannot exercise the rights stipulated in this Agreement shall constitute breach
of contract, the breaching party should be observant to any penalty unless the
circumstances that the parties agreed to assume no liability for breach of
contract.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    15.2 If
the breaching party caused losses to the innocent party for its breach of
contract, the breaching party shall indemnify the actual loss caused by
breaching behavior, and the damages compensation scope includes travel costs,
due diligence costs, legal fees, audit fees and assessment fees caused by the
acquisition matters of promised party.

     

    Article
XVI. Dispute Resolution

     

    16.1 The
dispute arising from the implementation of this Agreement shall be governed
by  the existing laws of PRC.

     

    16.2 In
the event of any dispute relating to this Agreement or arising from this
Agreement, under the circumstance that cannot be resolved between the parties of
this agreement, the parties agreed that any party may resolve disputes by the
way of litigation according to relevant provisions of “Company Law of PRC”,
“Civil Procedure Law of PRC” etc.

     

    Article
XVII. Notification

     

    17.1
Communication Name of Party A: HEILONGJIANG LANXI SUNRISE LINEN TEXTILE INDUSTRY
CO., LTD.

     

    Address:
Chengdong Street, Lanxicounty of Heilongjiang, Postcode: 151521

     

    Legal
Representative: RenGao

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    17.2
Communication Name of Party B:  Shufan Wang, Address: No 3, 2nd Floor,
Unit 9, Building 214, Dafangli Street, Daowai District, Harbin, Heilongjiang
Province, Postcode: 150001

     

    17.3
Communication Name of Party C:  Lijie Fu, Address: No 39, Tiantao
Lane, South Road of Xierdao Street, XinshengCommmunity, Lanxi Country,
Heilongjiang Province, Postcode: 151500

     

    17.4
Communication Name of Party D: LANXI TIANXIANFANG LINEN CO., LTD

     

    Address:
39th Group, 4th Committee, Chengdong Street, LanxiCounty. Postcode:
151500

     

    Legal
representative:  Lijie Fu

     

    Article
XVIII. Miscellaneous

     

    18.1 The
Agreement Appendix is the indivisible part of the agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    18.2 The
agreement has six original copies. Party A holds two copies, other
parties  hold one copy respectively, and all of them shall have the
same legal effect.

     

    18.3 The
parties should, based on the common principle of good faith,negotiate and
resolve the unmentioned issues, if the parties reach common agreement and shall
sign a written supplement agreement, and the supplemental agreement has the same
effect with the Agreement.

     

    18.4 The
Agreement can only come into force once signed by the legal representatives or
authorized representatives of Party A and Party D, stamped by the common seal of
legal representatives and signed by Party B and Party C.

     

    18.5 At
the effective date of the Agreement, the “Enterprise Fixed Assets Lease
Agreement” signed by Party A and Party D should be terminated to
perform.

     

    18.6 The
seal and signature represent that the parties related to this agreement have
fully reviewed the correctly confirmed, and represent the real meaning of the
parties.

     

    18.7 The
date on the third page at the beginning of this Agreement is the effective date
of this Agreement.

     

    The
following parts in this page are used for the common seal and signature of the
Parties to this Agreement and their representatives:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Party A: HEILONGJIANG LANXI SUNRISE LINEN TEXTILE
INDUSTRY

    CO.,LTD(Seal)

    Legal
representative or authorized representative (signature):

    By: /s/
RenGao

    RenGao

    

    Party
B (sign and press fingerprint):

    By: /s/
Shufan Wang

    Shufan
Wang

    Party
C (sign and press fingerprint):

    By:/s/
Lijie Fu

    Lijie
Fu

    Party
D: LANXI TIANXIANFANG LINEN CO., LTD (Seal)

    

    Legal
representative or authorized representative (signature):

    By: /s/
Lijie Fu

    Lijie
FuExhibit
10.1

    

    WARRANT
PURCHASE AGREEMENT

     

    THIS
WARRANT PURCHASE AGREEMENT, dated as of December 13, 2010 (this “Agreement”) is
entered into by and among Wuhan General Group (China), Inc., a Nevada
corporation (the “Company”), Fame Good
International Limited, a British Virgin Islands company (“Fame Good”), and the
undersigned holders of the Company’s Series A Warrants and/or Series B Warrants
(collectively, the “Holders”).

    

    WITNESSETH

    

    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,
Fame Good has offered to purchase all or part of each Holder’s Warrant for a
purchase price payable in an amount of Chinese Renminbi equal to $0.50 per share
of Warrant Stock underlying the Warrant, based on the average of the buying and
selling exchange rates as published by the Bank of China on the date hereof (the
“Purchase
Price”);

    

    WHEREAS,
the Transaction (as defined below) shall be made pursuant to an exemption under
the Securities Act of 1933, as amended; and

    

    WHEREAS,
the parties desire to enter into the Transaction upon the terms and conditions
herein.

    

    NOW,
THEREFORE, in consideration of the mutual covenants contained in this Agreement
and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, intending to be legally bound hereby, the parties
hereto agree as follows:

    

    1.           Each
Holder agrees to sell the number of shares of Warrant Stock underlying its
Series A Warrant and/or the number of shares of Warrant Stock underlying its
Series B Warrant indicated on such Holder’s signature page hereto (the “Elected Warrant
Stock”) to Fame Good, and Fame Good agrees to purchase the Elected
Warrant Stock from each Holder, for the Purchase Price (the “Transaction”).  Each
Holder shall relinquish such Holder’s right, title and interest in the Elected
Warrant Stock to Fame Good.

    

    2.           In
connection with the Transaction, (i) each Holder that also holds the Company’s
Series A Convertible Preferred Stock, $0.0001 par value per share, has signed
and delivered the Waiver, of even date herewith, of the Lock-Up Agreement, dated
February 7, 2007, between the Company and Fame Good (the “Waiver”) and (ii)
certain of the Holders have signed and delivered the Stockholders Agreement, of
even date herewith, with the Company, Fame Good and Xu Jie (the “Stockholders
Agreement”).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    3.           Each
Holder hereby represents and warrants that:

    

    a.           it
acknowledges and agrees to the terms and conditions of the Transaction as
provided for herein;

     

    b.           it
is duly incorporated or organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation or organization;

    

    c.           it
has the requisite power and authority to enter into and perform this Agreement
and, if applicable, the Stockholders Agreement and the Waiver, and to consummate
the transactions contemplated hereby and thereby. The execution, delivery and
performance of this Agreement and, if applicable, the Stockholders Agreement and
the Waiver, by such Holder and the consummation by it of the transactions
contemplated hereby and thereby have been duly authorized by all necessary
corporate or partnership action, and no further consent or authorization of such
Holder or its Board of Directors, stockholders, or partners, as the case may be,
is required. Each of this Agreement and, if applicable, the Stockholders
Agreement and the Waiver, has been duly authorized, executed and delivered by
such Holder and constitutes, or shall constitute when executed and delivered, a
valid and binding obligation of the Holder enforceable against the Holder in
accordance with the terms thereof;

    

    d.           the
execution, delivery and performance of this Agreement and, if applicable, the
Stockholders Agreement and the Waiver, and the consummation by such Holder of
the transactions contemplated hereby and thereby or relating hereto do not and
will not (i) result in a violation of such Holder’s charter documents or bylaws
or other organizational documents or (ii) conflict with, or constitute a default
(or an event which with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, acceleration or
cancellation of any agreement, indenture or instrument or obligation to which
such Holder is a party or by which its properties or assets are bound, or result
in a violation of any law, rule, or regulation, or any order, judgment or decree
of any court or governmental agency applicable to such Holder or its properties
(except for such conflicts, defaults and violations as would not, individually
or in the aggregate, have a material adverse effect on such Holder). Such Holder
is not required to obtain any consent, authorization or order of, or make any
filing or registration with, any court or governmental agency in order for it to
execute, deliver or perform any of its obligations under this Agreement or, if
applicable, the Stockholders Agreement and the Waiver;

    

    e.           it
has not exercised, assigned, pledged or hypothecated the Warrants (or the
Elected Warrant Stock), in part or in whole, and hereby grants the Company the
power of attorney to transfer the Series A and/or Series B Warrants exercisable
for all of the Holder’s Elected Warrant Stock to Fame Good on the books and
records of the Company upon the Company’s receipt of this fully executed and
completed Agreement and the surrender by the Holder of the Series A and/or
Series B Warrant certificate(s) exercisable for the Elected Warrant Stock;
and

    

    f.           it
has delivered this Agreement together with its Series A and/or Series B Warrant
certificate(s) exercisable for the Elected Warrant Stock to Juliet G. Sy at
Troutman Sanders LLP, 600 Peachtree Street, N.E., Suite 5200, Atlanta, Georgia
30308.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    4.           The
Holder hereby agrees to indemnify and hold harmless the Company, its officers,
directors, successors and assigns, and any person now or hereafter acting as the
Company’s transfer agent or acting in any similar capacity, from and against any
and all liability, loss, damage and expense in connection with, or arising out
of such person’s actions in accordance with the terms of this
Agreement.

    

    5.           The
Company hereby represents and warrants that:

    

    a.           it
is duly incorporated, validly existing and in good standing under the laws of
the State of Nevada;

    

    b.           it
has the requisite power and authority to enter into and perform this Agreement
and the Stockholders Agreement and to consummate the transactions contemplated
hereby and thereby. The execution, delivery and performance of this Agreement
and the Stockholders Agreement by the Company and the consummation by it of the
transactions contemplated hereby and thereby have been duly authorized by all
necessary corporate action, and no further consent or authorization of the
Company or its Board of Directors is required. Each of this Agreement and the
Stockholders Agreement has been duly authorized, executed and delivered by the
Company and constitutes, or shall constitute when executed and delivered, a
valid and binding obligation of the Company enforceable against the Company in
accordance with the terms thereof;

    

    c.           the
execution, delivery and performance of this Agreement and the Stockholders
Agreement and the consummation by the Company of the transactions contemplated
hereby and thereby or relating hereto do not and will not (i) result in a
violation of the Company’s organizational documents or (ii) conflict with, or
constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of any agreement, indenture or
instrument or obligation to which the Company is a party or by which its
properties or assets are bound, or result in a violation of any law, rule, or
regulation, or any order, judgment or decree of any court or governmental agency
applicable to the Company or its properties (except for such conflicts, defaults
and violations as would not, individually or in the aggregate, have a material
adverse effect on the Company). The Company is not required to obtain any
consent, authorization or order of, or make any filing or registration with, any
court or governmental agency in order for it to execute, deliver or perform any
of its obligations under this Agreement or the Stockholders Agreement;
and

    

    d.           it
has not provided any of the Holders with any material non-public information
concerning the Company in connection with this Agreement and the transactions
contemplated hereby.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    6.           Miscellaneous.

    

    a.           This
Agreement and the rights of the parties hereunder shall be governed by and
construed in accordance with the laws of the State of New York without regard to
conflict of law principles.

    

    b.           This
Agreement and, if applicable, the Stockholders Agreement and the Waiver
constitute the entire agreement between the parties regarding the subject
transaction, superseding any prior agreements or understandings between them,
and shall be binding upon the Holder and Holder’s permitted assigns and shall
inure to the benefit of the Company and its successors and assigns.

    

    c.           This
Agreement may be executed in several counterparts, including by way of facsimile
or electronic transmission, each of which shall be deemed an original but all of
which shall constitute one and the same instrument.

    

    [SIGNATURE
PAGES FOLLOW]

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, this Agreement is
accepted as of the date first written above.

     

    
      
        	
                “Company”

              
	 
      
	
                WUHAN
      GENERAL GROUP (CHINA), INC.

              
	 
      	 
      
	
                By:

              	
                /s/ Philip Lo

              
	 
      	
                Name:  Philip
      Lo

              
	 
      	
                Title:  Chief
      Financial Officer

              

      

    

    

    [Signature
Page to Warrant Purchase Agreement]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                “Fame
      Good”

              
	 
      
	
                FAME
      GOOD INTERNATIONAL LIMITED

              
	 
      	 
      
	
                By:

              	
                /s/ Xu Jie

              
	 
      	
                Name:  Xu
      Jie

              
	 
      	
                Title:  Director

              

      

    

    

    [Signature
Page to Warrant Purchase 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

            
	 
      	 
      	 
      
	
              Number
      of shares of Warrant Stock underlying

              Series
      A Warrant to be sold under

              the
      Warrant Purchase Agreement:

            	 
      	
              1,711,033

            
	 
      	 
      	 
      
	
              Number
      of shares of Warrant Stock underlying

              Series
      B Warrant to be sold under

              the
      Warrant Purchase Agreement:

            	 
      	
              1,596,964

            
	 
      	 
      	 
      
	
              Aggregate
      Purchase Price:

            	
                

            	
              $1,653,998.50

            

    

    

    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

            
	 
      	 
      	 
      
	
              Number
      of shares of Warrant Stock underlying

              Series
      A Warrant to be sold under

              the
      Warrant Purchase Agreement:

            	 
      	
              220,297

            
	 
      	 
      	 
      
	
              Number
      of shares of Warrant Stock underlying

              Series
      B Warrant to be sold under

              the
      Warrant Purchase Agreement:

            	 
      	
              205,611

            
	 
      	 
      	 
      
	
              Aggregate
      Purchase Price:

            	
                

            	
              $212,954

            

    

    

    [Signature
Page to Warrant Purchase Agreement]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                THE
      USX CHINA FUND

              
	 
      	 
      
	
                By: 

              	
                /s/ Stephen L. Parr

              
	 
      	
                Name:  Stephen
      L. Parr

              
	 
      	
                Title:  President
      of Parr Financial Group, Advisor to The USX China
  Fund

              

      

    

    

    
      	
              Address:

               

            	 
      	
              5100
      Poplar Ave., Ste. 3117

              Memphis,
      TN 38137

              Attn:  Kim
      Williams

            
	 
      	 
      	 
      
	
              Number
      of shares of Warrant Stock underlying

              Series
      A Warrant to be sold under

              the
      Warrant Purchase Agreement:

            	 
      	
              180,000

            
	 
      	 
      	 
      
	
              Number
      of shares of Warrant Stock underlying

              Series
      B Warrant to be sold under

              the
      Warrant Purchase Agreement:

            	 
      	 
      
	 
      	 
      	 
      
	
              Aggregate
      Purchase Price:

            	
                

            	 
      

    

    

    [Signature
Page to Warrant Purchase Agreement]

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