Commitments And Contingencies

12 Months Ended

Dec. 31, 2011

Commitments And Contingencies [Abstract]

Commitments And Contingencies

NOTE 19 – COMMITMENTS AND CONTINGENCIES

Employment agreement

     As of Jan 16, 2011, The Company entered into indefinite employment agreements with Benjamin Zhu. The agreements provide for an annual salary of $140,000 for each year for the term of the agreement with Mr. Zhu.

Guarantees

     Jonway Auto guaranteed certain financial obligations of outside third parties including suppliers to support our business and economic growth. Guarantees will terminate on payment and/or cancellation of the obligation once it is repaid. A payment by us would be triggered by failure of the guaranteed party to fulfill its obligation covered by the guarantee. Maximum potential payments under guarantees total $952,000 for 2011. Our performance risk under these guarantees is reviewed regularly, and has resulted in no changes to our initial valuations.