Document:

exv10w19

Exhibit 10.19

Contract No: YOJCHO7136

SOFTWARE LICENSING AGREEMENT

The parties to this agreement are:

	A.	 	Actoz Soft Co., Ltd. (“Licensor”), whose principal place of business is Unsuk B/D 4th
Floor. 132-3 Sung Buk-Dong Sung Buk-Gu, Seoul, Korea 136-020.
	 
	B.	 	Shanghai Shanda Internet Development Co., Ltd. [Chinese name] (“Licensee”), whose
principal place of business is A-31, Guoshoujin Rd., Zhangjiang Hi-tech Park, Shanghai, China,
200122, P.R.C.
	 
	C.	 	Shanghai Pudong New Area Imp. & Exp. Corp. [Chinese name] (“Import Agent”), whose
principle place of business is No. 843 Wen Deng Road, Shanghai, china 200120, P.R.C.

I. SOFTWARE

	 	1.01.	 	The computer software, which is the subject of this Agreement, consists of the following:

	 	(1)	 	A single computer program whose name or title is as follows: Legend of Mir II.
	 
	 	(2)	 	The program will be provided in the following medium: CD-ROM Title & INTERNET (complete
with client and server). The detailed list of program is in Appendix II.
	 
	 	(3)	 	The program is designed to perform the following functions: ON-LINE GAME SERVICE.
	 
	 	(4)	 	The program is provided as follows: Subject code language only (application program)

	 	1.02.	 	The license created by this Agreement also includes related printed documentation, image
files and films, including manuals covering the installation, application and use of the
computer program and published specifications and trademark, logo and any artwork related to
Legend of Mir.
	 
	 	1.03.	 	The license also includes subsequent improvements to either the computer program or the
related printed documentation made by the Licensor.
	 
	 	1.04.	 	All of the materials described in the preceding paragraphs of this article are hereafter
referred to as “Software.”

II. LICENSE GRANT AND APPLICATION

	 	2.01.	 	Licensor hereby grants and Licensee accepts the sole and exclusive license to use, promote,
distribute, market adapt or modify, and convert the Chinese language version of the Software
subject to the conditions and the period specified herein. The server will be located in
Mainland China and Hongkong only.

	 	(1)	 	The translation of the Software shall be done by the Licensor.
	 
	 	(2)	 	The translation of game manual shall be done by the Licensee.

 

 

	 	(3)	 	Building a home page for the game shall be done by the Licensee.

	 	2.02.	 	The license granted herein applies only to the territory of Mainland China, the People’s
Republic of China and Hong Kong (hereinafter referred to as “China”). Licensee has the right
to appoint a general agent in Hongkong with the permission to utilize, promote, market and
distribute this software within the region.
	 
	 	2.03.	 	The license granted herein shall remain in force for the minimum term of TWO YEARS starting
from the beta service in China. Unless either party sends a written notice to the other party
stating that it does not want to renew this Agreement within sixty (60) days prior to the
expiration of this Agreement, this Agreement will be automatically extended for a further term
of one year.
	 
	 	2.04.	 	Licensee has the unrestricted right to copy and distribute the client side of the Software.
	 
	 	2.05.	 	Licensor shall notify Licensee when an updated version of the computer program portion of
the Software has been designed and is available for distribution and shall provide Licensee
with the originals of the client and server side of the updated Software as soon as they are
available. No expenses should be charged for any updated versions. All the rights related to
the updated, modified, or upgraded materials which will be performed during the term of this
contract belong to the executant.
	 
	 	2.06.	 	If Licensor stops providing the service of the Software in the Korean Market, the Licensor
shall give to Licensee at least those updates requested by Licensee to continue the service.
	 
	 	2.07.	 	During the term of this Agreement, in the event that the Licensor intends to develop a
Sequel and /or a pure subsequent versions the Licensor shall give Licensee a right of first
negotiation for the exclusive promoting, user marketing and distribution rights for China in
respect of such a Sequel.
	 
	 	2.08.	 	Licensee should provide the Licensor with the price scheme including the price for CD and
the price for service of the legend of mir II in China all the time.
	 
	 	2.09.	 	Licensor shall not provide service of the sequels of the Legend of Mir II in mainland China
and Hongkong within one year after this contract.

III. PROPERTY RIGHTS

	 	3.01.	 	Title to the Software is reserved to the Licensor. Licensee acknowledges that Licensor is
and shall remain the owner of the Software.
	 
	 	3.02.	 	Licensee acknowledges that the Software is confidential in nature and constitutes a trade
secret belonging to Licensor. Licensee agrees not to distribute or transfer the Software
either during the term of this agreement and two years thereafter, but Licensee may freely
copy and distribute the client side of the Software. Transfer and distribution to the
Licensee’s Hongkong General Agent is permitted by this Agreement.
	 
	 	3.03.	 	During the term of this Agreement, Licensee agrees to keep the Software at a secure place
under access and use restrictions designed to prevent disclosure of the Software to
unauthorized persons and not less strict than those applicable to Licensee’s own trade
secrets.

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	 	3.04.	 	Licensee further agrees to instruct its personnel to keep the Software confidential by using
the same degree of care and discretion that they use with other data designated by Licensee as
confidential.

IV. PAYMENT

	 	4.01.	 	In payment for the license granted under this Agreement, Licensee shall assign the “Import
Agent” to perform payment to Licensor an installation fee of US$ 300,000 and a monthly royalty
fee payable on the fifteenth day of each month whose method of payment is set forth in Exhibit
“1.”
	 
	 	4.02.	 	All the costs related to assigning “Import Agent” and the fees “Import Agent” charges for
the money transfer shall be the responsibility of the Licensee.
	 
	 	4.03.	 	Where tax is levied by tax authorities of China in respect of the payment to be made by
Licensee to Licensor, Licensee shall deduct such taxes from payment made to Licensor and shall
send to the Licensor tax certificates or other official documents within one (1) month after
the respective payment which certify the payment by Licensee of such tax on behalf of
Licensor.
	 
	 	4.04.	 	Except for force majeure. Licensee takes the full responsibility to make sure that “Import
Agent” performs the payment as required.

V. DELIVERY, INSTALLATION AND TRAINING

	 	5.01.	 	Licensor shall deliver the original of the client and server side of the Software (the
Chinese Version) to Licensee no later than Sept 1, 2001. The parties may mutually agree to
change this date. At Licensee’s request, Licensor shall also provide the Software by computer
transmission.
	 
	 	5.02.	 	Licensee shall do all the translations related to the software including game manuals, home
pages, advertising materials, game command lists etc except the translation of the software
itself.
	 
	 	5.03.	 	Licensor shall deliver all the documents in English or Korean which are necessary for the
service to Licensee no later than the 15th of July, 2001. Licensee shall deliver all the
translated materials to the Licensor no later than the 4th of Aug, 2001. If the installation
of the Software is deferred due to the late delivery of the translated materials, the Licensor
takes no responsibility on that respect.
	 
	 	5.04.	 	Licensor shall be responsible for the installation of the Software as needed. Licensor will
provide technical services in connection with the installation and maintenance of the Software
at Licensee’s site at no additional charge throughout the term of this Agreement. Licensor is
responsible for eliminating all viruses or other deficiencies including deficiencies of the
system security in the Software throughout the term of this Agreement. If it is necessary for
Licensor to travel to Licensee’s office in China, traveling cost to the Licensee’s office is
the responsibility of the Licensor. The specific installation time, place and standards are
set forth in Appendix V.
	 
	 	5.05.	 	Licensor shall provide Licensee with reasonable technical orientation and training. The
training schedule, place and contents are set forth in Appendix VI. Traveling cost to
Licensor’s office is the responsibility of the Licensee.

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VI. WARRANTIES

	 	6.01.	 	Licensor warrants that it has good title to the Software and the right to license its use to
Licensee free of any proprietary right of any other party or any other encumbrance whatsoever.
Copyright Certificates for this Software is attached in Appendix I.
	 
	 	6.02.	 	Licensor shall indemnify and hold Licensee free and harmless against any and all loss,
liability, penalty, damage or expense (including reasonable attorney’s fees) resulting from
any claim or suit by any third party against Licensee alleging infringement of trade secrets,
copyrights, patents, trademark, trade name or other proprietary rights in each case, so long
as such claim or suit is based upon Licensee’s use of the Software and its related documents
provided by Licensor.
	 
	 	6.03.	 	Licensor warrants that the Software shall conform to the Licensor’s published functional
specifications when delivered to Licensee. Licensor shall provide programming services to
correct Software defects that cause the Software to fail to conform to Licensor’s published
functional specifications. The technical parameters and functions of the Software are set
forth in Appendix III and IV.
	 
	 	6.04	 	Licensor undertakes that no logical bombshell exists in this Software and an effective system
has been established inside to prevent illegal intrusion. Without the permission of the
licencee, the Licensor shall not make any actions of a nature which causes amendments on the
Software installed in the sever which is provided by the Licensee.

VII. TERMINATION

	 	7.01.	 	The license granted herein shall be terminated upon the occurrence of any of the followings:

	 	(A)	 	Expiration of the term specified herein, or any optional renewal
term;
	 
	 	(B)	 	Unauthorized disclosure of the Software to a third party other
than Licensee’s Hongkong Agent.
	 
	 	(C)	 	Failure to pay the monthly licensee fee for two consecutive
months;
	 
	 	(D)	 	Cessation of business by the Licensee.
	 
	 	(E)	 	Licensee suffers bankruptcy, whether voluntarily or involuntarily.

	 	7.02.	 	Licensee agrees that upon termination of the license, it shall return the original versions
of the Software to Licensor and all the Software related databases.

	 	7.03.	 	Licensee shall have the right to terminate this Agreement in the event that (i) the game
server stops due to Licensor’s material breach and fails to restart the server within ten (10)
days of the Licensee’s written notice to cure; or (ii) the Licensor ceases or terminates its
business, or its marketing of the Software and fails to cure within ten (10) days after
receipt of notice, or suffers bankruptcy, whether voluntarily or involuntarily, or any other
reorganization, or an arrangement is made on behalf of Licensor’s creditors or fails to cure
its deficiencies which can cause shut-down of the game server within ten (10) days after
receipt of notice or (iii) the Licensor infringes or violates any terms, guarantee clauses or
obligations made in this agreement.

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VIII. GENERAL TERMS AND CONDITIONS

	 	8.01	 	Any notice required or permitted to be given to either party under this Agreement shall be
delivered in written (including Facsimile) via express mail service or fax to the address
below. The notice will take effect 72 hours after the mail is received by the express mail
service company or 24 hours after the send-out of the fax.
	 
	 	 	 	Actoz Soft Co., Ltd. (“Licensor”)
	 
	 	 	 	Unsuk B/D 4th Floor, 132-3 Sung Buk-Dong Sung Buk-Gu, Seoul,
	 
	 	 	 	Korea 136-020.
	 
	 	 	 	tel : +82-2-743-8260
	 
	 	 	 	fax : +82-2-743-8261
	 
	 	 	 	Shanghai Shanda Internet Development Co., Ltd. (“Licensee”)
	 
	 	 	 	14/F, POS Plaza, 1600 Century Avenue, Shanghai, 200122, P.R.C.
	 
	 	 	 	tel : +86-21-58312822
	 
	 	 	 	fax : +86-21-58312822
	 
	 	 	 	SHANGHAI PUDONG NEW AREA IMP. & EXP. CORP. (“Import Agent”)
	 
	 	 	 	2/2FL, Yanlord Plaza, No.92 Mao Xing Road, Shanghai, 200127, P.R.C.
	 
	 	 	 	tel:+86-21-5870-1181
	 
	 	 	 	fax:+86-21-5839-6111
	 
	 	8.02.	 	Licensee shall not assign or otherwise transfer its rights under this agreement, nor
transfer or assign the Software without the prior written consent of the Licensor with the
Hongkong Agent as an exception.
	 
	 	8.03.	 	This Agreement may be modified only by a written agreement duly executed by persons
authorized to execute agreements on their behalf.
	 
	 	8.04.	 	This Agreement shall be governed and construed by in accordance with the laws of Singapore.
All disputes arising under this Agreement shall be submitted to final and binding arbitration.
The arbitration shall be held in Singapore in accordance with the Rules of Arbitration of the
International Chamber of Commerce.
	 
	 	8.05.	 	This Agreement constitutes the entire agreement between the parties and is a complete and
exclusive statement of the mutual understanding of the parties. It supersedes and cancels all
previous written and oral agreements and communications relating to the subject matter of this
agreement.
	 
	 	8.06.	 	The term of this Agreement are confidential. Neither party shall disclose to any third party
except Hongkong General Agent, its terms during the term of this Agreement and two years
thereafter.
	 
	 	8.07.	 	In the case either party infringes or violates any terms, guarantee clauses or obligations,
is liable for and will indemnify the aggrieved party from and against all loss. The
agreement-abiding party has the right to require the delinquent party to make proper remedies
to continue Agreement before the completion of indemnities or remedies by the delinquent
party, the agreement-abiding party has no obligations to fulfill the actions required by the
Agreement but is still entitled to the rights under the Agreement.
	 
	 	8.08.	 	This Agreement and its Appendices bear the same legal effect.

Executed on 29th of June 2001 at the licensor’s office in Shanghai, China.

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	LICENSOR

	 	LICENSEE	 	 
	 
	 	 	 	 
	By: /s/ JongHyun Lee
 

	 	By: /s/ Tim Chan
 

	 	 
	JongHyun Lee

	 	Tim Chan	 	 
	CEO & President

	 	CEO & President	 	 
	 
	 	 	 	 
	 

	 	[SEAL]	 	 
	 
	 	 	 	 
	IMPORT AGENT
	 	 	 	 
	 
	 	 	 	 
	By: /s/ Shao Jan Nan
 

	 	 	 	 
	Shao Jan Nan
	 	 	 	 
	General Manager
	 	 	 	 
	 
	 	 	 	 
	[SEAL]
	 	 	 	 

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EXHIBIT ONE

Payments will be made by Import Agent on behalf of Licensee to Licensor as follows:

	1.	 	For the right to distribute the Software in China, Licensee shall pay a non-refundable fee of
300,000 US dollars (Cases stated in Clause 7.03 shall be considered as exception) to Licensor
as an installation fee at the signing of this contract. But with mutual consent, the payment
schedule of the fee can be adjusted

	2.	 	Licensee will pay royalties to Licensor as follows:

	 	A.	 	The royalty will be paid only when the commercial service is being provided.
	 
	 	B.	 	The commercial service should start no later than 3 months after installation of
the software to the Licensee’s servers.
	 
	 	C.	 	The royalty rate is 27% of total sales of the Software.
	 
	 	D.	 	The total sales include the sales of CDs, prepaid cards and any other forms of
sales of the Software which shall not include sales expenses for distributors.
	 
	 	E.	 	True and correct accounts shall be kept by the Licensee and maintained at the head
office of the Licensee. And all the money due under this Agreement shall be paid to Licensor
within 2 weeks after the end date of each month.
	 
	 	F.	 	All the payment is paid in U.S Dollars: the exchange rate is based on the rate
published by the HSBC, Shanghai on the end date of each month.

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APPENDIX

			
	Appendix I:	 	Copyright Certificates for this Software

			
	Appendix II:	 	Language for the Software program client program : Boland Delphi4

Server program (including installation program and installation documents) : Boland
Delphi4

Database : Boland Delphi4

Management program : Boland Delphi4

			
	Appendix III :	 	Technical parameters for Legend of Mir II

– MPOG (RPG):oriental back ground mixed with fantasy

– Client Requirements

     – Minimum Requirements: Pentium 233MHZ,Ram 64M,SVGA, Necessary HDD 400M

     – Recommended: Celeron 400Mhz,Ram 128M,SVGA, HDD 600M

– Developing Tools, Programming Language & Protocol

     – Server & Gateway: Borland Delphi4, Windows NT 4.0

     – Client: Borland Delphi4, Windows NT 4.0

     – Protocol: TCP/IP

– Server Specifications (Complete Configuration)

     – Login Serve : P-III 600Mhz, 10G, 128M

     – Game Server 1 : P-III 1Ghz Dual, 105G, 512M 1 Server per 2,000 Concurrent Users

     – Game Server 2 : P-III 1Ghz Dual, 105G, 512M

     – Game Server 3 : P-III 1Ghz Dual, 105G, 512M

     – DB Server : P-III 8000MHz, 20G, 256M

     – Gateway Server 1 : P-III 800Mhz Dual, 10G, 128M 1 Server per 1,400 Concurrent Users

     – Gateway Server 2 : P-III 800Mhz Dual, 10G, 128M

     – Gateway Server 3 : P-III 800Mhz Dual, 10G, 128M

     – Gateway Server 4 : P-III 800MHz Dual, 10G, 128M

– Sever Specifications (Basic Configuration for Beta Test)

     – Game Server : Login + Game + DB

     – Gateway Server

– Server OS: Windows 2000 Pro

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– Required Bandwidth

     – T1 covers 350 concurrent users

     – E1 covers 400 concurrent users

     – T3 covers 10,000 concurrent users

Appendix IV: list of the functions of the software

The manual provided by Atoz Soft Co., Ltd. is only a guidance for newcomers and does not give a
complete description on the functions that will be used by clients of above grade 11. We are
looking forward to a detailed and complete list of all the functions, including description on the
Guild, for the purpose to make convincing advertising.

Meanwhile, during waiting for the complete version, we have to take larger business risks and input
new capital investments. Therefore, we hope the a complete version of new functions, such as music,
can be provided so as to enable us to make decision instead of keep waiting.

APPENDIX V: INSTALLATION STANDARDS, TIME AND PLACE

Installation Place: Shanghai or Hongkong

Installation time: The licensor promises that the installation shall be no later than September
1st; in the case that the licensee provides server and bandwidth, the installation shall not last
more than 10 days. Installation standards: including but not limited to: clients can successfully
gain the identity to enter the Software

Clients can utilize the Software with no considerable difficulty or obstacles, and the content of
the Software is in accordance with the what stated in Appendix II and the client manual.

Server load is accordance with the technical standards.

The security of statistics is guaranteed.

APPENDIX VI: TRAINING SCHEDULE, PURPOSE AND PLACE:

Training place: Shanghai

Training time: Finishing no later than 10 days after the completion of the installation

Training purpose: Including but not limited to: Tasks able to be handled by licensee engineer and
GM: Independent Installation, testing of the server program,

Ensure the stability of daily operation, able to handle common technical emergency or accidents.
Give technical support to the payment system of the Software and the logging of all types of data.
GM can face clients directly and manage the daily operation of the whole Software independently and
use the management program with proficiency.

APPENDIX VII: RELATED ADVERTING MATERIALS AND TIME

The licensor shall give active support to the licensee to conduct advertising in mainland China and
provide licensee with materials including but not limited to: market advertising materials, current
outer packaging material, market promotion materials, website design material, advertising
pictures, Software introduction books and etc. The licensee has the right to utilize these
materials for commercial purposes.

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EXHIBIT TWO

Payments will be made by Import Agent on behalf of Licensee to Licensor as follows:

	1.	 	For the right to distribute the Software in China, Licensee shall pay a non-refundable fee of
300,000 US dollars to Licensor as an installation fee.

	 	A.	 	$100,000 shall be paid by the Licensee at the signing of this contract.
	 
	 	B.	 	$100,000 shall be paid by the Licensee at the start of Beta Test in China.
	 
	 	C.	 	The rest of the installation fee ($100,000) shall be paid by the Licensee within
2 months after the start of Commercial service in China.

	2.	 	Licensee will pay royalties to Licensor as follows:

	 	G.	 	The royalty will be paid only when the commercial service is being provided.
	 
	 	H.	 	The commercial service should start no later than 3 months after installation of
the software to the Licensee’s servers.
	 
	 	I.	 	The royalty rate is 27% of total sales of theSoftware.
	 
	 	J.	 	The total sales include the sales of CDs, prepaid cards and any other forms of
sales of the Software.
	 
	 	K.	 	True and correct accounts shall be kept by the Licensee and maintained at the
head office of the Licensee. And all the money due under this Agreement shall be paid to
Licensor within 2 weeks after the end date of each month.
	 
	 	L.	 	All the payment is paid in U.S Dollars; the exchange rate is based on the rate
published by the HSBC, Shanghai on the end date of each month.

10exv10w20

Exhibit 10.20

AMENDMENT AGREEMENT

THIS AMENDMENT AGREEMENT (this “Agreement”) is entered into on this 19th day of August 2003 by and
between:

ACTOZ SOFT CO., LTD., a company incorporated and existing under the laws of the Republic of Korea
(“Korea”) with its principal place of business at Unsuk B/D 4th Floor, 132-3, Sungbuk-dong,
Sungbuk-gu, Seoul, Korea (“Licensor”); and

SHANGHAI SHANDA INTERNET DEVELOPMENT CO., LTD. [Chinese Name], a company incorporated and existing
under the laws of the People’s Republic of China (“China”) with its principal place of business at
21F Huarong Plaza, No 1289 South Pudong Road Shanghai, P.R. China 200122 (“Licensee).

SHANGHAI PUDONG IMPORT & EXPORT CO., LTD. [Chinese Name] a company incorporated and existing under
the laws of the People’s Republic of China (“China”) with its principal place of business No 2A, No
92 Maoxing Road, Shanghai, P.R.China 200122

[Chinese Name], (WOFE) a company incorporated and existing under the laws of the People’s Republic
of China (“China”) with its principal place is No 638-7, No 2, No 351 Guoshoujing Road, Zhangjiang
High Technical Park, Shanghai, P.R.China 200122

WITNESSETH:

WHEREAS, Licensor and Licensee (together with Shanghai Pudong New Area Import & Export Corp) have
entered into a Software Licensing Agreement dated June 29, 2001 (“SLA”) for Licensor to license to
Licensee the rights to provide on-line game service in China by using Licensor’s Legend of Mir II
game ([Chinese] as a corresponding Chinese name), attached hereto as Appendix I;

WHEREAS, Licensor and Licensee, together with Wemade Entertainment Co, Ltd (“Wemade”), entered into
a Supplementary Agreement on 14 July 2002
(“Supplementary Agreement”); and

WHEREAS, the parties now wish to amend the terms and conditions of the SLA in the manner specified
in this Agreement.

NOW, THEREFORE, the parties agree as follows:

	1.	 	Amendments to the SLA. The SLA shall be amended as follows.

	 	1.1	 	Section 2.03 of the SLA shall be amended so that the term of the SLA shall be
extended to September 28, 2005 (The End of the License Period) unless earlier terminated
under this Agreement or other related agreements. The said End of the License Period shall
be further extended to September 28, 2006 with no changes in any terms and conditions of
this agreement or of other related agreements if and only if there are no disputes on the
Mir II between both parties.
	 
	 	1.2	 	Exhibit One-2-C, D and Two-2-I, J shall be amended so that the royalty percentage
for Legend of Mir II shall be 17.55% of the total user payment until September 28, 2003
and from September 29th, 2003, it shall be 21% of total user payment, whether or not Actoz
provides the technical support, upgrades or patches as defined in Clause 1.5 of this
Agreement. The license fee for the extension of Mir II from September 29 2003 to the End
of the License Period shall be four (4) million US dollars. Licensee shall wire

 

 

	 	 	 	the said license fee to Actoz on or before September 28th, 2003. Total user payment
herein shall mean the gross sales amount calculated based on the actual retail price of
each and every item related to CDs, pre-paid cards and any other forms of the Software
sold by Licensee or by its distributor or agent to end users, or other total earnings
made by Licensee in direct connection with playing of the Legend of Mir II. For the
avoidance of doubt, the total user payment for any of the items referred to in the above,
shall be equal to the actual retail price offered to end users multiplied by the number
of the item sold either by on-line or off-line during the relevant royalty period.
Licensee agrees to issue dedicated pre-paid cards for Mir II, which will not be combined
with other games.

(1) Of the said licensee fee of four (4) million US dollars, Licensor
agrees to donate 500,000 US dollars to the following non-profit organization:

a) The organization shall be named “China-Korea Game Industry Promotion Fund”
and shall be established and controlled by Actoz.

	 	1.3	 	Section 4.01 shall be amended so that the monthly royalty fee shall be paid
within 15 business days after Licensee receives the invoice from the Licensor. Licensee
shall submit the royalty report on the previous month by the 15th day of the following
month.
	 
	 	1.4	 	Section V and Exhibit One-1/Two-1 are already executed and are no longer
applicable.
	 
	 	1.5	 	With regard to the technical support, patches and upgrades, the following terms
and conditions shall be added to the existing terms and conditions of the SLA:

	 	(1)	 	Licensor shall not be obligated to, but is entitled to provide
Licensee with technical support, patches and upgrades regarding to the Legend of Mir
II. Should such technical support or upgrades or patches not be provided by
Licensor, Licensee shall request a written approval from Licensor to provide
Licensee’s own technical support or patches or upgrades. Licensor agrees to answer
to the requested written approval within ten (10) business days.
	 
	 	(2)	 	If there is no written reply by Licensor to Licensee’s proposal to
Licensor within ten (10) business days since Licensee sends the written proposal to
Licensor, the written proposal shall be deemed to be disapproved by Licensor.
	 
	 	(3)	 	Licensee shall be entitled to provide technical solutions for hacker
attacks, piracy servers, and cheating programs with written notice to Licensor.
Licensor shall not be liable or be responsible in any way for these provisions of
technical solutions by Licensee. Licensor shall not, under any circumstances, be
responsible for any damages or losses due to or arising out of the provision of such
technical solution by Licensee whether or not Licensor has consented to such
provision by Licensee.
	 
	 	(4)	 	Licensee respects Licensor’s property rights for the Mir II Software.
Licensee agrees that the titles and property rights for the patches and/or upgrades
to the Mir II during the license period, excluding technical solutions specified in
1.6 (3) above, shall belong to Licensor, whether or not the said patches and/or
upgrades are provided by Licensor or licensee.

	 	1.6	 	With regard to the audit and report, the following terms and conditions shall be
added to the existing terms and conditions of the SLA:

	 	(1)	 	In order to improve the transparency in the calculation of royalty
payments, Licensee shall provide to Licensor on or before the 15th day of each month
commencing September 15,2003, the data on peak and average concurrent users

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	 	 	 	during the previous month and the basis on which Licensee calculates the royalties
commencing from September 15, 2003 (Royalty Report). After receiving the previous
month’s Royalty Report, Actoz has the option of sending a representative to
Licensee to verify the calculation and the on-screen data views (operated by
Shanda’s employees) from the billing system of the Mir II royalties for the
previous month with Licensee’s finance department(s). All activities of Actoz’s
representative shall be accompanied by relevant employees of Licensee.
	 
	 	(2)	 	Licensee also agrees to provide an annual royalty report, prepared by
one of the big four international accounting firms (PriceWaterhouseCooper, KPMG,
Ernst & Young, and Deloitte & Touche Tomatsu), related to Licensee’s calculation of
royalties in connection to the Legend of Mir II, once per year upon request by
Licensor.
	 
	 	(3)	 	Licensee also agrees to allow Licensor once a quarter to appoint one
of the big four international accounting firms (PriceWaterhouseCooper, KPMG, Ernst &
Young, and Deloitte & Touche Tomatsu) to verify the calculation of the royalty
payments at Licensor’s expenses. In case the total user payment reported by Licensee
shows discrepancy with the one calculated by the Licensor-appointed accounting firm,
the Licensee has the right to appoint its own accounting firm from one of the big
four international accounting firms (PriceWaterhouseCooper, KPMG, Ernst & Young, and
Deloitte & Touche Tomatsu) to re-verify the Licensor-appointed accounting firm’s
calculations. The final royalties payable shall be determined by the average of the
two accounting firms’ calculations.
	 
	 	(4)	 	The average of the calculations of the royalty amounts by the two
accounting firms appointed by the Parties shall be finally effective and binding on
both Licensee and Licensor. If the Licensee’s payment of the royalties is less than
the average of the two calculations, the Licensee shall pay the difference within 15
business days from the date each of the two accounting firms sends its report to the
Parties, whichever is later. If the Licensee’s payment of the royalties is more than
the average amount of the two calculations, then the Licensee shall be entitled to
set-off any excess payment from future payable royalty.
	 
	 	(5)	 	For the avoidance of doubt, once the Licensor appoints its accounting
firm according to section 1.6(3) to verify the Licensee’s computations for the
previous quarter as provided above, the time for the Licensee to make payment for
that specific quarter is automatically extended until after the Licensee-appointed
accounting firm has completed and submitted its re-verification report to the
Parties and the Licensee shall not be considered to have made any delay in payment.

	 	1.7	 	With regard to the cause for termination of the SLA, the following terms and
conditions shall be added to the existing terms and conditions of the SLA:
	 
	 	 	 	Subject to clause 1.6 above, Licensor and Licensee agree that the SLA shall terminate
automatically if Licensee does not pay the monthly royalty according to Licensee’s
monthly royalty report for two (2) months or more (whether consecutive or not), or if
Licensee delays to pay the monthly royalty according to Licensee’s monthly royalty report
for three (3) months or more without the prior written agreement of Licensor, except for
the following situations:

	 	(1)	 	Delays of payment or partial payment as a result of disagreements
between Licensee’s royalty report(s) and the verifications by Actoz’s representative
and/or by Actoz’s accounting firm per clause 1.6;

3

 

	 	(2)	 	Delays of payment or partial payment as a result of factors not under
Licensee’s direct control, for example, natural disasters or delays from foreign
exchange agencies with official confirmation letters from respective government
office.

	 	1.8	 	With regard to the severability of the SLA, the following terms and conditions
shall be added to the existing terms and conditions of the SLA:
	 
	 	 	 	In the event that any clause or provision or part thereof in the SLA shall for any reason
be determined by any court or tribunal to be illegal, invalid or unenforceable, then the
remaining clause or provision or part thereof shall not be affected, impaired or
invalidated and shall remain in full force and effect and shall continue to be binding
upon Licensor and Licensee. In such case, the parties shall make their best efforts to
amend the SLA so that the parties’ original intention is provided in the SLA to such
extent as possible.
	 
	 	1.9	 	With regard to the approval for the performance of the SLA, the following terms
and conditions shall be added to the existing terms and conditions of the SLA:
	 
	 	 	 	Each of the Licensor and Licensee shall be responsible for obtaining (if any) all
licenses, permits, registrations and other approvals or consents and for filing reports
necessary for the performance of its obligations and acts under the SLA from governmental
and other authorities, or any other relevant party in Korea and China respectively in
time, and thereafter for maintaining them in force. Such licenses, permits,
registrations, approval, consent and reports include, without limitation, the approvals
of the SLA by the government of Korea and China and reports to the relevant authorities
in Korea and China.
	 
	 	1.10	 	Licensee agrees not to force end-users of Mir II to leave Mir II to switch to any
other games operated by Licensee, not to carry promotional advertisements of other games
operated by the Licensee on the web-site www.mir2.com.cn. and not to change the Chinese
name [Chinese] of Mir II without prior consent by Licensor.
	 
	 	1.11	 	Licensee shall not transfer the user ID, password, and character information
including character type, level, items etc related to the Legend of Mir II to any other
games nor utilize user ID, password, and character information including character type,
level, items etc related to the Legend of Mir II for the benefit of any other games. Upon
Licensee’s failure to comply with this article 1.11, the Licensee shall pay US $1 million
for each incidence to the Licensor and all agreements and commitments signed by Actoz
shall be deemed null and void and shall lose their effect forthwith automatically.
	 
	 	1.12	 	All existing and future disputes on the Intellectual Property Rights of the Legend
of Mir II or of Legend of Mir III shall not affect the terms and conditions of this
Agreement and of the Settlement Agreement.

	2.	 	Other Terms. Except as amended by this Agreement, all provisions of the SLA shall remain
in full force and effect.
	 
	3.	 	Supplementary Agreement
	 
	 	 	Both Licensee and Actoz acknowledge that by the Supplementary Agreement WeMade has granted all
the rights and representations to Actoz in connection with the Legend of Mir II in China during
the effective period. Upon the signing of this Agreement, both Actoz and
	 
	 	 	Licensee agree that the following terms in the Supplementary Agreement shall become null and
void automatically between Licensee and Actoz, both of whom shall waive any and all

4

 

	 	 	allegations and claims, whether known and unknown, against anyone, under the following terms of
the Supplementary Agreement.

	 	(1)	 	Section 1
	 
	 	(2)	 	Section 2
	 
	 	(3)	 	Section 3
	 
	 	(4)	 	Section 4
	 
	 	(5)	 	Section 5
	 
	 	(6)	 	Section 6

	4.	 	Language. The English language version of this Agreement shall control in all respects and
for purposes of any and all disputes and litigation.

	5.	 	Counterparts. This Agreement may be executed in one or more counterparts, all of which
shall be considered one and the same agreement and shall become effective when one or more
counterparts have been signed by each of the parties and delivered to the other party, it
being understood that all parties need not sign the same counterpart. Signatures may be
evidenced by facsimile.

	6.	 	Assignment. This Agreement may not be assigned by any party to a third party without prior
written consent of the other party.

	7.	 	Integral Part. This Agreement shall constitute the integral and inseparable part of the
SLA.

	8.	 	Obligations and duties of WOFE: .

	 	(1)	 	Actoz and Shanda and WOFE agree that WOFE shall become part of Licensee if and
only if Wemade signs this agreement and the Settlement Agreement dated August 19th, 2003.
	 
	 	(2)	 	For the avoidance of doubt, in this Agreement the term of “both parties” refers
to Shanda and Actoz and does not refer to WOFE unless after WOFE becomes part of Licensee
as specified above.

	9.	 	Representation and Warranties. In addition to the original Representations and Warranties
in the SLA, each Party represents and warrants on the date hereof as follows:

	 	(1)	 	Each Party is a corporation duly organized, validly existing and in good standing
under all applicable laws and is duly registered and qualified to do business. Each Party
has all requisite corporate power and authority to execute and deliver, and perform its
obligations under this Agreement, and to consummate the transactions contemplated hereby;
and
	 
	 	(2)	 	The execution, delivery and performance of this Agreement by each Party has been
duly authorized by all necessary corporate actions on the part of such Party. This
Agreement has been duly executed and delivered by each Party, and is the valid and legally
binding obligation of each Party, enforceable in accordance with its terms.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective duly authorized signatories as of the day and year first written above.

5

 

	 	 	 	 	 	 	 	 	 
	LICENSOR

	 	 	 	 	 	 	 	LICENSEE
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Jong Hyun Lee
	 	 	 	By:
	 	Timothy Chan
	 

	 	 	 	 	 	 	 	 
	Name:

	 	Jong Hyun Lee
	 	 	 	Name:
	 	Timothy Chan
	Title:

	 	CEO & President
	 	 	 	Title:
	 	Chairman of BOD
	 

	 	Actoz Soft Co., Ltd.
	 	 	 	 	 	Shanghai Shanda Internet
	 

	 	 	 	 	 	 	 	Development Co., Ltd.

Acknowledge and agree to the terms and conditions of this Agreement:

By:
     /s/ Timothy Chan          

Name: Timothy Chan

Title: Chairman of BOD

[CHINESE NAME] (WOFE)

[SEAL]

By: (sign)

Name:

Title: Chairman of BOD

           Shanghai Shanda Import & Export Cor., Ltd.

6

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