On November 28, 2011, we signed a non-binding term sheet with IFM Investments Limited (operator of the Century 21 brokerage network), or
Century 21 China Real Estate, and its founders, which proposed a transaction that would result in Century 21 China Real Estate issuing approximately 960
million new Class A ordinary shares to us and the founders of Century 21 China Real Estate at $0.0267 per share and we becoming Century 21 China Real
Estate’s largest shareholder. We have since been in good faith negotiation of the detailed terms with Century 21 China Real Estate and its founders. In the
meantime, we were made aware that one of Century 21 China Real Estate’s institutional shareholders took certain legal action in a Cayman court to prevent the
proposed transaction from proceeding and that Century 21 China Real Estate and its founders have been in negotiation with this shareholder to resolve the
matter. We are awaiting satisfactory resolution of this matter before proceeding further with the proposed transaction.